environmental protection, product safety, operational safety, workplace hygiene … ·...

Responsible Care Report2005 Edition

Environmental Protection,

Product Safety, Operational Safety,

Workplace Hygiene and Health

Responsible Care

Editing Policy

Contents

Shiraoi••Shiraoi••

Tomobe•Tomobe•

Kawasaki•Kawasaki•

Ohito••Ohito••

Fuji••••Fuji••••

Nagoya•Nagoya•Suzuka•Suzuka•

Wakayama•Wakayama•

Moriyama••••Moriyama••••

Hozumi•Hozumi•Shiga•Shiga•

Iwakuni•Iwakuni•Chikushino•Chikushino•

Oita••Oita••Nobeoka•••••Nobeoka•••••

Chiba••Chiba••

Mibu•Mibu•

Saitama•Saitama•

Gunma•Gunma•Mizushima•Mizushima•

Ageo•Ageo•

Ono•Ono•

Domestic LocationsFibers Chemicals Life & Living Construction Materials

Homes Electronics Materials & Devices Pharma

Responsible CareResponsible Care represents the commitmentand initiative to secure and improve safety andenvironmental protection at every step of theproduct life-cycle through the individualdetermination and responsibility of each firmproducing and handling chemical products.Responsible Care also entails measures togain greater public trust throughcommunication and dialog. Responsible Carewas conceived in Canada in 1985, andexpanded notably following the 1990establishment of the International Council ofChemical Associations (ICCA) which hasexpanded to comprise the chemical industriesof 52 nations by April 2005. In 1995 thechemical industry in Japan beganimplementing Responsible Care with theestablishment of the Japan Responsible CareCommittee (JRCC). As of April 2005, theJRCC comprised 108 member companies.Asahi Kasei was among the foundingmembers of the JRCC, and played a leadingrole in the expansion and development ofResponsible Care in Japan.

Responsible Care at Asahi Kasei is notlimited to chemicals-related operations, butextends throughout all fields of operation.

The Japanese Ministry of the Environment’s Environment Report Guidelines, 2003 edition,were consulted during the preparation of this report. The content of this report is not limitedto environmental protection, but includes information related to corporate socialresponsibility and all of our Responsible Care measures, including product safety, operationalsafety, and workplace hygiene and health.

Period under reviewThe primary focus of the report is fiscal 2004 (April 2004 – March 2005), and all data showncorresponds to this period unless otherwise indicated. Some information pertaining toevents subsequent to the end of the fiscal year has also been included.

PublicationNinth edition, published June 2005 in Japanese.

Purview of reportThe purview of the report includes all domestic operations of the core operating companies ofthe Asahi Kasei Group and the operations of affiliated companies implementing our commonResponsible Care program shown on pp. 54–55.

The Asahi Kasei Commitment.......... 1

Basic Credo of the Asahi KaseiGroup................................................. 1

Asahi Kasei Group Overview............ 2

Fiscal 2004 Highlights....................... 4

Responsible Care Initiative of theAsahi Kasei Group...........................14

Environmental Protection............... 20

Physical Integrity andSafe Operation................................ 32

Workplace Safety and Hygiene...... 36

Health Maintenance........................ 40

Employee Fulfillment...................... 42

Product Safety................................ 44

Managing Chemical Substances.... 46

Community Outreach...................... 48

Corporate Citizenship..................... 50

The Asahi Kasei Responsible CareGroup............................................... 54

Facts and Statistics........................ 56

Independent Review Report........... 61

Sakai•Sakai•

1

The Asahi Kasei Commitment

Shiraoi••

Tomobe•

Kawasaki•

Ohito••

Fuji••••

Nagoya•Suzuka•

Wakayama•

Moriyama••••

Hozumi•Shiga•

Iwakuni•Chikushino•

Oita••Nobeoka•••••

Chiba••

Mibu•

Saitama•

Gunma•Mizushima•

Ageo•

Ono•

Public awareness of environment-related issues was prominent infiscal 2004, and measures to prevent global warming gained newimpetus in February 2005 with the Kyoto Protocol coming into effect.Environmental protection is a constant part of doing business intoday’s world. Every enterprise must contribute to the sustainabilityof prosperity for the people of the world. At the Asahi Kasei Groupwe work to advance sustainable development in accordance with ourbasic tenets of contributing to human life and human livelihoodthrough constant innovation and advances based in science and thehuman intellect.

Our voluntary Responsible Care program lies at the core of ourefforts for preservation of regional and global environments, physicalintegrity and safe operation for the safety and security of thecommunities where we operate, workplace safety, hygiene, andhealth for our workers, and product safety for our customers andconsumers.

Many important lessons learned from the March 2002 Leona Plantfire have been applied throughout the Asahi Kasei Group, enhancingthe overall level of safety in operation and ensuring against the occurrence of another major accident. The minorincidents which do occur are analyzed to identify their cause and mechanism, which not only enables recurrence to beprevented but also brings insight into the potential for preventing situations which carry the risk of developing into anaccident. This means not simply following a familiar routine and assuming all is well as long as problems don’t occur,and then reacting to problems as they arise; it means taking a comprehensive view of all related factors and takingproactive measures to eliminate the risk of problems developing.

There are three points of emphasis as we work to heighten the level of operational safety. First, we are adopting anew approach and concept for the maintenance of plants which are operating beyond their originally planned life-span.Second, we are adopting new management standards which reflect emerging changes in the makeup of our workforce,with experienced veteran operators approaching retirement, and changes in public expectations for safety performance,with heightened sensitivity and awareness of safety-related issues. Third, we are expanding the application of lessonsfrom safety incidents at other companies and among the various Asahi Kasei Group production sites, with a focus onidentifying signs which enable risks to be predicted before problems develop. The first two entail the use of new safetymanagement technology and systems, and also utilization of knowledge gained from the third.

One key aspect of our role as a corporate citizen is our responsibility to engage the public in a dialog based on faithfulinformation disclosure. We hope that this report, describing our day-to-day efforts for Responsible Care and publishedsince 1997, serves to advance this dialog. We welcome any opinions or feedback you may have.

Basic tenets

We the Asahi Kasei Group, through constant innovation and advances based in science andthe human intellect, will contribute to human life and human livelihood.

Guiding precepts

Action guideline

create new value, thinking and working in unison with the customer, from the perspective of the customer.respect the employee as an individual, and value teamwork and worthy endeavor.contribute to our shareholders, and to all whom we work with and serve, as an international, high earningsenterprise.strive for harmony with the natural environment and ensure the safety of our products, operations, and activities.progress in concert with society, and honor the laws and standards of society as a good corporate citizen.

Breakthrough – TogetherMove beyond the current limits, open the path, share the advance

• Customer – focus Act with the customer as the starting point.• Global – development Act in a global field of vision.• Group – dynamics Act for a group structure of independent enterprises in mutual rivalry.

Basic Credo of the Asahi Kasei Group

June 2005

President Shiro Hiruta

We will

Sakai•

2

Asahi Kasei Group Overview

100,000

80,000

120,000

60,000

40,000

20,000

(20,000)

(40,000)

(60,000)

(80,000)

0

86,747

Ordinary profit

39,84925,177

5,180

(66,791)

50,389 53,643

27,672

112,876

56,454

2000 2001 2002 2003 2004 Fiscalyear

¥ MillionNet income (loss)

Asahi Kasei constantly endeavors toheighten fast-moving and transparentmanagement as essential formaximum corporate value andgreater earnings. Corporategovernance has been enhanced bythe transformation to a holdingcompany configuration, the adoptionof an executive officer system ofmanagement with separate executionand oversight functions, and theestablishment of a Group AdvisoryCommittee.

Asahi Kasei has long recognizedthe importance of issues related tocorporate social responsibility (CSR),and has adopted a range of measuresguided by the Corporate EthicsCommittee, the Responsible CareCommittee, and other corporateorgans. In April 2005 a RiskManagement Committee and

a Community Fellowship Committeewere established, and a CSR Councilwas formed with the presidentserving as chair, to guide the effort toheighten our performance in thisarea for the sustainable expansion of

corporate value. The CSR Councilbuilds on and enhances the AsahiKasei tradition of management withan emphasis on environmental andsocial aspects of operation.

Corporate governance

1,500,000

1,200,000

1,377,6971,269,414

1,195,393 1,193,6151,253,534

900,000

600,000

300,000

2000 2001 2002 2003 2004 Fiscalyear

¥ Million

0 Homes375,755 (27.3%)

Pharma103,933 (7.5%)

Fibers104,261 (7.6%)

Electronics Materials& Devices93,025 (6.8%)

Construction Materials59,908 (4.3%)

Life & Living59,149 (4.3%)

Chemicals557,439 (40.5%)

Services, Engineeringand Others24,228 (1.7%)

Asahi Kasei Corporation• Head office: 1-1-2 Yurakucho, Chiyoda-ku, Tokyo• President: Shiro Hiruta• Establishment: May 21, 1931

• Paid-in capital: ¥103,389 million*• Consolidated assets: ¥1,270,057 million*• Consolidated employees: 23,820*

* As of March 31, 2005.

Consolidated net sales Ordinary profit, net income (loss) Fiscal 2004 sales by operating segment¥ Million (% of total)

CSR Council (new)

Corporate Ethics Committee

Responsible Care Committee

Market Compliance Committee

Export Control Committee

Risk Management Committee (new)

Community Fellowship Committee (new)

Groupstaff

functions

GroupExecutives

Council

StrategicManagement

Council

GroupAdvisory

Committee

Board ofCorporateAuditors

Chairmanof the Board

Board ofDirectorsShareholders

CSRCouncil

InternalAuditing

President

3

E-learning course for handling ofpersonal information.

Corporate ethics and compliance

Corporate Ethics – Basic Policy

• Creating value, contributing to society

• Caring for environment, health, and safety

• Honoring law and norms of society

• Excluding subversive elements

• Respecting the individual

• Ensuring transparency

• Respecting information and intellectual property

• Practicing corporate ethics

We have long sought to ensurecompliance throughout the operationsof the Asahi Kasei Group, in theconviction that high ethical standardscorrelate with business performanceand success. In 1998 we codified ourCorporate Ethics – Basic Policy andCode of Conduct and established aCorporate Ethics Committee.A booklet describing the Basic Policyand Code of Conduct was distributed toall personnel as part of a program tomake everyone thoroughly familiarwith them. In 2001 our CorporateEthics – Basic Policy and Code ofConduct was revised to bring clearcontinuity with our newly establishedBasic Credo, the Basic Tenets andGuiding Precepts of which identify thepurpose and meaning of the AsahiKasei Group and the purpose andcommitment of each employee.With the transformation to a holdingcompany configuration, corporatebodies in each core operatingcompany have been charged withcoordination and oversight to maintaincompliance.

Compliance HotlineBeginning in April 2005, the AsahiKasei Group employs a “ComplianceHotline” to ensure that personnel havesecure and trusted recourse to reportany possible ethical lapses which maybe encountered or observed.The Compliance Hotline is available foruse by all personnel working in theAsahi Kasei Group, includingexecutives, employees, contractualemployees, and dispatched personnel –both full-time and part-time, and bothlong-term and temporary.The Compliance Hotline Secretariat or,if deemed appropriate, a response teamformed for the purpose will investigateeach matter reported.If the investigation confirms that aviolation of law or internal corporateregulations has occurred, appropriateaction will be implemented.The reporting party will incur nodisfavor or other disadvantage as aresult of having made a report throughthe Compliance Hotline.

Protecting personal informationTo ensure full compliance with Japan’sPersonal Information Protection Lawwhich took effect in April 2005, ane-learning course was implemented inJanuary for all personnel throughoutthe Asahi Kasei Group , includingexecutives, employees, contractualemployees, and dispatched personnel –both full-time and part-time, and bothlong-term and temporary. Some 25,000personnel completed the course,gaining a practical understanding ofthe law and proper handling ofpersonal information.

Asahi Kasei FibersCorporation

Asahi Kasei ChemicalsCorporation

Asahi Kasei Life& Living Corporation

Asahi Kasei ConstructionMaterials Corporation

Asahi Kasei HomesCorporation

Asahi Kasei EMDCorporation

Asahi Kasei PharmaCorporation

4

HIGHLIGHTS

Asahi Kasei’s greenhouse gas emissions in fiscal 2004were roughly half of those in fiscal 1990. This isequivalent to an approximately 0.5% reduction fromJapan’s total fiscal 1990 greenhouse gas emissions.

Measures to curtail emissions of greenhouse gases inJapan gained new impetus in February 2005 as the KyotoAccord came into effect. Asahi Kasei has implemented abroad range of measures, including technologicaldevelopment, to achieve its large reduction. Some notabledevelopments are shown here. See p. 21 for moreinformation.

Reducing by-product N2O emissionsOne by-product of adipic acid production at the LeonaPlastics & Materials Plant of Asahi Kasei Chemicals is thegreenhouse gas N2O, which had been released to theatmosphere. Equipment was developed for the thermaldecomposition of this by-product N2O, and operationbegan in March 1999. In fiscal 2004, over 90% of the N2Ofrom this plant, with a global warming potential equivalentto some 8 million tons of CO2, was decomposed intonitrogen and oxygen.

Chemicals

Chemicals

Non-phosgene PC process using CO2

Asahi Kasei has developed the world’s first polycarbonate(PC) production process to use the chemically inert CO2

as feedstock. The process contributes to emissionsreduction by utilizing as feedstock CO2 which wouldotherwise have been released to the atmosphere.

The process also enables PC production without usingthe hazardous phosgene and methylene chloride asprocess materials, bringing a greater degree of safety forproduction personnel and the surrounding community.Intermediate compounds are cycled back into theproduction system, resulting in a very low amount ofwaste generation.

Equipment for thermal decomposition of N2O.

Suntec™ foam cushioning material.

Eco-footprint Club brochure.

Countering global

warming

5

Phase-out of HFCs as foaming agentHFCs were used as foaming agent in the production ofSuntec™ plastic foam cushioning material at the SuzukaPlant of Asahi Kasei Life & Living. Because HFCs aredesignated as greenhouse gases, technology wasdeveloped to enable their substitution by hydrocarbonfoaming agent. A phase-out of HFC foaming agent beganin fiscal 2004, with completion scheduled for fiscal 2005.This will result in an annual reduction of emissions with aglobal warming potential equivalent to some 180 thousandtons of CO2.

Suny Lite™ plastic foam insulation panels produced atthe same plant are made using HCFCs, also designated asgreenhouse gases, as foaming agent. Plans are beingadvanced to phase out HCFCs in favor of hydrocarbonfoaming agent.

Life & Living

Homes

Eco-footprint ClubAsahi Kasei Homes operates a website called“Eco-footprint Club” for children to learn aboutthe environment, ecology, and conservation ina fun and easy-to-follow format. The siteincludes interactive tools for tracking andmonitoring a household’s ecological footprint,and learning about ways a family can reduce it.

Suntec™ foam cushioning material.Suntec™ foam cushioning material.

Eco-footprint Club brochure.Eco-footprint Club brochure.

6

Products for the consumer are designed for exceptionalperformance with respect to ecology and comfortableease of use. Measures implemented to ensure compliancewith Japan’s Personal Information Protection Law whichtook effect in April 2005 are also described here.

Ecoefficient Hebel Haus™ productsLong-term serviceabilityThe Long Life Home means the durability and functionalityto maintain ownership satisfaction over more than half acentury. Given the serious shortage of landfills, and thathomes have an average life span of 26 years in Japan, LongLife Home products which last for over 60 years make avaluable contribution to sustainability by lessening theneed to demolish and rebuild.

Enhanced ecological functionThe Hebel Haus Sorakara™ and Kazenoto™ Long LifeHome products are designed to alleviate environmentalburdens and utilize the benefits of nature, enablingexceptional environmental benefits in terms of energy andresource conservation.

Utilizing nature to reduce environmental burdens andimprove comfortA simulation system enables enhanced energy efficiencyand comfort to be achieved by using natural sunlight andairflow. Simulations of sunlight and wind enable windowplacement, building orientation, and arrangement of floorplans and fixtures to be optimized for each specific site.The Sorakara™ is designed to enable this system to beutilized to maximum effect.

Homes

Hebel Haus Sorakara™.

I question the notion that acomfortable environment isnecessarily one that is mechanicallycontrolled and regulated. We areopening eyes to the possibility ofhomes and living habits which utilizenature to provide comfort, whilereducing the consumption ofresources.

Geothermal heating/coolingA geothermal heating and cooling system utilizes thetemperature differential between the air and ground toprovide energy-efficient cooling in summer and heating inwinter. While conventional heat pumps release heat to theatmosphere when cooling the home, the new systemreleases the removed heat to the ground and thus avoidscontributing to the “heat island” effect in dense urbanareas. Standard equipment on the Kazenoto™.

Roof gardeningA planting system for roofs and verandas to be covered insoil to grow plants provides natural insulation from the heatof summer and enablesresidents to enjoygardening in confinedurban locations. Standardequipment on theKazenoto™.

Rainwater utilizationA system for collection ofrainwater for flushingtoilets and watering plantsenables conservation ofwater. Standardequipment on theKazenoto™.

Researcher’s comment

HIGHLIGHTS

Ecology, comfort,

security

Yutaka TaharaProduct & Design Planning DepartmentAsahi Kasei Homes Corp.

Simulation of wind and sunlight penetration.

Hebel Haus Kazenoto™.

7

Saran Wrap™ with universal designThe concepts of universal design, to facilitate ease of useby all, are a key part of product and packaging design atAsahi Kasei Life & Living. Their application, as anextension of the tradition of customer-oriented productdevelopment, is promoted by its Universal DesignAwards program. The latest Saran Wrap™ box is a casein point, with easy to read instructions and with tab, flap,and adhesive components, and dimensions andmarkings, that all facilitate sure, safe, smooth filmaccess, withdrawal, and cutting. It has been recognizedwith a PA Award from the Japan Society of PhysiologicalAnthropology (see p. 18).

Protection of personal informationIn the course of doing business, the Asahi Kasei Groupreceives personal information from consumers, clients,suppliers, shareholders, and others. We are committedto maintaining the privacy and security of this personalinformation, and to ensuring that it is handledappropriately in accordance with the basic policy at right.

Corporate regulations for proper handling of personalinformation are codified in the Asahi Kasei GroupPersonal Information Handling Guidelines. Each coreoperating company has taken inventory of personalinformation held, and inspected practices throughout thereceipt, use, storage, and disposal of personalinformation, implementing corrective measures asnecessary.

Education and training for all employees includes thedistribution of an information security handbook whichcovers issues related to personal information protection,and the implementation of an e-learning course aboutprotection of personal information. Personal informationof employees is subject to the same standards ofprotection.

• We handle personal information properly and in

compliance with the Personal Information Protection

Law and other applicable statutes, and in

conformance with generally accepted norms and

standards.

• We ensure that personnel throughout the Asahi Kasei

Group thoroughly understand and faithfully comply

with corporate standards and regulations for the

handling of personal information.

• We use personal information only for the specific

purposes which have been indicated or announced at

the time of its receipt.

• We employ appropriate measures in the maintenance

and management of personal information to ensure

against unauthorized alteration, disclosure, and loss

of personal information.

• We will respond in good faith to requests to confirm,

revise, cease using, or delete personal information.

Basic policy for protection of personal information

Life & Living

People involved in the new box design

Chikashi MukaiMarketing Dept.

Asahi Home Products Co., Ltd.

Kyoko HayashiMarketing Dept.Asahi Home Products Co., Ltd.

Kousei TanakaHome Products Technology Dept.Asahi Kasei Life & Living Corp.

Information Security Handbook.

8

Following the January 2004 loss of certification of AsahiKasei Chemicals to perform its own “completioninspections” and “safety inspections” as provided for byJapan’s High-pressure Gas Safety Law, systems for safetyand compliance have been enhanced at production sitesthroughout the Asahi Kasei Group. Three categories ofmeasures were established, with ongoing implementation.

Thorough legal complianceConfirmation that no lapse or omission exists with respectto measurement, detection, and notification as mandatedby legal regulations related to all production operations ofthe Asahi Kasei Group. Repeated periodically and asregulatory changes take place.

Enhanced systems of managementSeparation of organizational authority for plant operation,maintenance, and workplace safety and hygiene.

Compliance educationEducation to ensure compliance. Performed each year atall production sites, with courses tailored for each level ofresponsibility.

In addition, Asahi Kasei Chemicals is enhancing thesafety and integrity of its production operations with TotalProductive Maintenance (TPM). TPM is a naturalextension of the plant integrity initiatives which AsahiKasei Chemicals has advanced for over 30 years,beginning with the New Plant Maintenance program of1975 to heighten the skills and abilities of operators at theMizushima plant complex. While the measures andpractices for safe operation which have grown anddeveloped over the years were in many ways theforerunner of TPM, the conditions and circumstances ofoperation have changed over time, with some plantsreaching 35 years of age and the number of operatorshaving decreased.

TPM was launched at Mizushima and Kawasaki, thetwo main production centers of Asahi Kasei Chemicals, to

refound the commitment to safe operation while adapting totoday’s circumstances. It will be expanded successively to includeall production sites of Asahi Kasei Chemicals. The TPM initiativeserves to reinforce physical integrity and safe operation through avariety of measures to enhance operator awareness and creativethinking while improving and modifying plant and equipment.

The TPM Kickoff Meeting at the Kawasaki Works.

HIGHLIGHTS

Operational

integrity

Chemicals

The General Manager of the Mizushima Works observes apresentation of TPM results during his daily rounds.

9

Creative minds and

innovative plant – bright

& lively Mizushima

revitalization.

We are using TPM to drive the

effort for a vibrant, thriving

Mizushima Works, seeing

operational, mechanical, and

organizational problems from

a fresh perspective, gaining

new insight into how to

progress. Nine specialized

functional teams lead the

lateral advancement of TPM

measures across the

organization, throughout all

sections, both production and

support. Day by day, each

task is executed with pride,

bringing us one step closer to

achieving our vision.

The TPM Kickoff Meeting at the Mizushima Works.

TPM Vision

Kazuo NakamuraGeneral Manager, TPMMizushima Works

Revitalized plant and

renewed perspective –

Kawasaki thriving with

TPM by all.

We are keenly aware that TPM

must yield concrete results in

conjunction with the Kawasaki

Works mid-term management

plan. We are working with the

teams at each production

section, supporting their

efforts for fresh thinking and

plant improvements. To keep

the initiative from becoming

stale, events are periodically

held to showcase TPM

measures and stimulate

discussion. TPM brings a

sense of accomplishment,

helping people appreciate the

value of seemingly small,

every-day tasks as vital

to our overall objectives.

TPM Vision

Hidetaka ItouGeneral Manager, TPMKawasaki Works

Comments from personnel involved

HIGHLIGHTS

10

Feeling how the intensity of electric shock varies withdegree of moistness.

Seeing the power of an air cylinder.

Construction Materials

Watching a chopstick easily broken bya chain and sprocket.

Workplace

safety

Workplace safety is a priority throughout the Asahi KaseiGroup. The effort to prevent workplace accidents isfocused on the intrinsic safety of the plant and equipmentwe use, and on education and training of personnel toheighten awareness of hazards and understanding of theiravoidance.

The program of education and training includes four-step hazard prediction, reporting of near-accidents andpotential hazards, case studies, observation patrols, andconfirmation by indication and vocalization.

Hands-on training with simulatedhazardsSince 2000, the safety training program has also includedhands-on experience with equipment to simulate hazards atthe Nobeoka Technical Training Center. This trainingenables personnel to see for themselves how seeminglyharmless equipment can cause serious injury if not handledwith sufficient care. This hands-on training has built agreater appreciation of workplace hazards, resulting inheightened compliance with safe operation standards toprevent accidents.

In 2002 an employee at the Asahi KaseiConstruction Materials plant in Shiraoi waspinched and caught by the machinery,receiving serious injury. In addition toformulating ways to improve intrinsic plantsafety, a safety training program wasdeveloped for hands-on experience usingsimulated hazard equipment, modeled on theNobeoka program but tailored to theworkplace conditions of constructionmaterials plants.

11

Experiencing the instinctive reaction to hold tightly to an itemthe moment it is caught between rollers.

Comment from the project coordinator

While considering a widerange of measures toheighten awareness for safeoperation, we learned aboutthe hands-on trainingprogram in Nobeoka.Looking into it, we soonrealized that it was anexcellent concept, and onewhich we could draw on todevelop equipment tosimulate hazardsencountered in our plants.

We came up with five pieces of equipment: A chain drive,an air cylinder, a set of rollers, an electric shock unit, and aunit to measure the electrical resistance of the human body.

Because our production sites are spread throughout Japan,we had to be able to easily disassemble, transport, andreassemble the equipment in order for the training to beapplied for all personnel. My department led the program,setting up the equipment at each plant site and instructinglocal personnel who then led the training at their location.

The program was well received at each site, with manyparticipants commenting on the valuable experience gained.Even if everyone knows of the hazards around them in theworkplace and has been trained to avoid them, a real-life tasteof their effects leaves a lasting impression. We have receivedmany requests from other core operating companies to borrowour equipment, and the program has been used at the plantsites in Fuji and Moriyama in addition to the constructionmaterials sites. We also have other sites scheduled to use it allthrough 2005. By March 2005, some 3000 Asahi Kasei Grouppersonnel had taken part in the training.

Makoto KurokouchiProduction Control Dept.Asahi Kasei Construction Materials

Comments from training participants

Things I learned

Rollers• The unconscious reflex is to hold tightly to an item the

moment it is drawn into the rollers, and it’s hard to let go.• If I was concentrating on something else, I wouldn’t be

able to react in time to avoid getting pulled in.

Chain and sprocket• Seeing the chopstick so easily snapped in two, I shuddered

to think it could be my finger.• If a 40 watt motor can easily break a chopstick, I could

easily lose a finger to the motors in the plant.

Air cylinder• I understood how solenoid valves controlled the cylinder’s

movement.• I was surprised how much force is released by an air

cylinder which is obstructed in mid stroke.

The body’s electrical resistance• I saw how much difference there is between a dry and wet

state.• Even when wearing safety boots, resistance decreased

when wet. I will be extra careful when it’s raining.

Electric shock• I appreciated how much greater the shock is when wet.• I learned how much difference there is between

individuals.

Things I will do differently• Keep a safe difference from machinery in operation.

Never be so at ease that I fail to pay enough attention.• Double check that electric power is cut and air pressure is

released.• Be sure to use rubber gloves and other protective gear.

Appreciating the drawing strength ofrollers.

12

Digital photographssent

Analysis ofmeals

User

Dietitian,advisor

Results of analysis andpersonalized advice

Internet

Industrial Safety and Hygiene ConferenceA presentation describing our personal diet managementsystem was given at the 2004 Industrial Safety and HygieneConference, held by the Japan Industrial Safety and HealthAssociation in Osaka. The presentation drew interest withits outstanding ease of use and the improved healthindicators which result, including weight, cholesterol, andblood sugar measurements.

HIGHLIGHTS

Health and

fitness

The Asahi Kasei Group supports the maintenance andimprovement of employee health, and workplaces areequipped to respond to health-related emergencies.

Personal diet management systemThe effort for health management is enhanced by the useof an Internet-based system to help employees improvedietary habits. The system provides users withpersonalized dietary advice based on analysis of photos oftheir meals. Employees with diabetes, high bloodpressure, high cholesterol, and overweight who use thissystem have shown marked improvement in theircondition.

Meals photographedby digital camera

Personal dietmanagement system

Personal diet management system

Comment from an industrial physician

The source of many health problemsis intricately related to people’slifestyles. The personal dietmanagement system developed byAsahi Kasei is proving to be apowerful tool: Some 70% ofemployees who use the system haveimproved their dietary habits,resulting in significant reductions indiabetes indicator and total cholesterol values.

Kenichi SumiyoshiIndustrial PhysicianFuji Office

Comment from a user

I had tried to manage my diet before,but was never able to memorize theamounts and calories of each item offood. With the personal dietmanagement system, I can get ananalysis of my meals by simplytaking a photo, making it easy for mywife and me to adjust my dietwithout leaving home. With Internetaccess, I can also continue to use the system even though I’vebeen transferred to China.

Naoyuki OhyaAsahi Kasei Medical (Hangzhou)

13

Training to be an instructor in AED use. Practicing AED use.

Automated external defibrillators (AEDs)AEDs are used to administer an electric shock to counterventricular fibrillation in cardiac arrest victims. Beginningin July 2004, a physician’s order is no longer requiredbefore defibrillation can be administered in Japan. AEDunits are now being emplaced at workplace locationsthroughout the Asahi Kasei Group, with on-site health carestaff are being trained in their use. As of March 2004,fifteen AEDs are available: Twelve at offices in the Tokyoregion, two at locations in Nobeoka, and one in Ohito.

AEDs are also available at many public gathering places,such as airports, auditoriums, sports stadiums, and fitnessclubs. The many Asahi Kasei Group personnel trained intheir use will be ready to provide a life-saving response ifthe need arises away from the workplace.

BMI trends

Diabetes indicator

Weight trends

26

10.0

105.0

100.0

95.0

90.0

9.0

8.0

7.0

6.0

5.0

4.010 2

Months using the system

Months using the system

3

10 2 3

All users Users w/improved diet

Users w/oimproved diet

25.8

25.6

25.4

25.2

25

Ave

rage

BM

I

At start After 3 months At start After 3 months

74.5

All users Users w/improved diet


74

73.5

73

72.5

72

Ave

rage

wei

ght(

kg)

Improved 69.8%

Diet Average weight change Average BMI change% of users

Nochange 25.7%

Worsened 4.5%

Some 70% of the system’s users improved their diets, resulting in reduced BMI.

An AED at theTokyo Health Center

All users0.9 kg decrease(from 73.9 to 73.0,P<0.0001)

0.3 decrease(from 25.8 to 25.5)

0.4 decrease(from 25.9 to 25.4)

0.1 increase(from 25.6 to 25.7)

1.3 kg decrease(from 74.0 to 72.7,P<0.0001)

0.3 kg increase(from 73.5 to 73.8, NS)

Users w/improved diet


Kanako Katube and Akiko Tsukao,public health nurses of Asahi Kasei’sTokyo Health Center, are ready torespond quickly to an emergency.

Weight (at start of diet management = 100)

Target

Normalmaximum

Responsible Care Initiative of the Asahi Kasei Group

14

Throughout the product life-cycle from R&D to disposal, utmost consideration is given toenvironmental preservation, product safety, operational safety, and workplace hygiene and health aspreeminent management tasks in all operations worldwide.

• Environmental preservation is achieved by ameliorating the environmental burden of operationswhile giving full consideration to the environment in the development of new technologies andproducts.

• Product safety is ensured by evaluating the safety of products and providing safety information.• The safety of personnel and members of the community is secured through endeavors to maintain

stable operation and improve technologies for safety and disaster prevention.• Workplace accidents are prevented through improvements to the workplace environment and

plant modifications to achieve inherent safety.• Maintenance and promotion of employee health is supported by efforts to achieve a comfortable

workplace environment.

In addition to maintaining legal compliance, continuous improvement is pursued through attainmentof self-imposed targets based on results of risk assessment. Public understanding and trust is gainedthrough proactive communication and information disclosure.

Asahi Kasei Group Responsible Care Principles

EnvironmentalProtection

OperationalSafety

HealthMaintenance

Workplace Safetyand Hygiene

ProductSafety

CommunityOutreach

Asahi Kasei Group Responsible Care

The program of Responsible Care atthe Asahi Kasei Group, comprisingmeasures for environmentalprotection, product safety, physicalintegrity and safe operation,workplace safety, hygiene, and

health, and community outreach, isnot limited to chemicals-relatedoperations but includes operations inall fields, including fibers,construction materials, housing,electronics, pharmaceuticals, and

medical devices. Responsible Careremains fundamental to themanagement of operations in theholding company structure adoptedin October 2003.

Our fiscal 2004Responsible CareObjectives and resultsfor the year are shownat right. While results insome areas were notsatisfactory, we haveexamined the reasonsfor this and areimplementing changesin fiscal 2005 to enableimprovement. For fiscal 2005 we are again aiming forthoroughgoing legal compliance, and for zeroenvironmental pollution from accidents, and zeroindustrial accidents, zero workplace injuries.

Kunio KohgaExecutive for RC

15

RC objectives, results, and goals

FY 2004 RC Objectives FY 2004 summary results Achievement FY 2005 RC Objectives Long-term goal

Expand scope of application ofRC.

Advance RC education andtraining.

Enhance dialog with the public.

Avoid all environmental pollutionfrom accidents.

Reduce final disposal volume ofindustrial waste by 33% from fiscal2000 level.

Reduce unit energy consumptionby ≥1%.

Reduce greenhouse gasemissions by ≥1%.

Reduce release and transfer ofPRTR-specified substances,including hazardous atmosphericpollutants.

Acquire ISO 14001 certification at90% of plants.

Avoid serious product safetyincidents.

Avoid all industrial accidents.

Control changes to equipment andoperating conditions.

Monitor for items in need ofreplacement/uninspected items,implement remediation.

Advance utilization of preventivemeasures, perform remediationbased on risk assessment.

Fully utilize systematicmaintenance system for accidentprevention.

Establish independentresponsibility for plant safety andmaintenance.

Achieve frequency rate of 0.1 orless. Achieve severity rate of0.005 or less.

Expand adoption of OHSMS.Enhance utilization of OHSMSwhere it is implemented.

Systematize and unify base forhealth support.

Reduce proportion of employeesreceiving health cautions.

Promote emotional health andcare.

Fair

Fair

Good

Good

Good

Good

Good

Fair

Poor

Good

Poor

Fair

Good

Fair

Fair

Fair

Poor

Good

Fair

Poor

Fair

General

Environmentalprotection

Productsafety

Operationalsafety

Workplacesafety andhygiene

Healthmaintenance

RC advanced in overseasoperations of each coreoperating company.

Guidelines for educationalmaterials prepared.

RC reports published by coreoperating companies.

No environmental pollutionfrom accidents.

Approximately 35% reductionachieved.

Target achieved.

Approximately 50% reductionfrom fiscal 1990 emissionsmaintained.

Releases to air and waterreduced by approximately34%. Transfer increased byapproximately 23%. Releaseof hazardous atmosphericpollutants reduced by over90% from fiscal 1995 level.

Certification acquired atapproximately 80% of plants.

No serious product safetyincidents.

Two industrial accidentsoccurred.

Establishment of system forthree-party approval(operation, maintenance, andESH).

Backlog from fiscal 2002cleared.

Implemented.Ongoing advancement tocontinue.

Implemented.Ongoing advancement tocontinue.

Preparation of systemcompleted.Disaster response training tobe premised on more serioussituations.

Frequency rate of 0.36 andseverity rate of 0.011.

Adoption at approximately90% of production facilities,as planned.

Systems established atregional offices andgeographically separatedplants.

Slight increase.

Ability to respondappropriately evaluated.Support provided togeographically separatedplants.

* Number of accidental deaths and injuries resulting in the loss of one or more workdays, per million man-hours worked.** Lost workdays, severity-weighted, per thousand man-hours worked.

• Enhance RC compliance.

• Extend RC to more affiliates.

• Advance RC education and training.

• Enhance dialog with the public.

Heighten RCperformance.

Avoid serious product safety incidents.No serious productsafety incidents.

• Avoid all environmental pollution fromaccidents.

• Reduce final disposal volume ofindustrial waste by 45% from fiscal2000 level.

• Reduce unit energy consumption by≥1%.

• Acquire ISO 14001 certification at90% of plants.

• Improve other environmental factors.

• Advance green procurement.

• No environ-mental pollutionfrom accidents.

• Zero emissionof industrialwaste by fiscal2010.

• Reduce unitenergyconsumption to≤90% of fiscal1990 level byfiscal 2010.(JCIA target)

• Reduce releaseand transfer ofPRTR-specifiedsubstances.

• Acquire ISO14001certification atall plants.

• Avoid all industrial accidents.

• Enhance functional separation ofauthority for operation, maintenance,and ESH.

• Control changes to equipment andoperating conditions.

• Fully utilize systematic maintenancefor accident prevention.

• Monitor for items in need ofreplacement and uninspected items;implement remediation.

• Monitor for fire, explosion, and leakhazards; implement remediation.

No industrialaccidents.

• Achieve frequency rate of 0.1 or less.• Achieve severity rate of 0.005 or less.• Expand adoption of OHSMS.

Enhance utilization of OHSMS whereit is implemented.

• Thoroughly comply with safeoperation standards.

Maintain world-leading frequencyrate and severityrate for lost-workday injuries.

• Systematize and unify base for healthsupport.

• Reduce proportion of employeesreceiving health cautions.

• Enhance workplace environmentthrough advanced utilization of fourapproaches to emotional health andcare.

• Reduce number of employees onextended leave of absence foremotional convalescence.

Promoteemployee health.

RC PrinciplesThe Asahi Kasei Responsible CarePrinciples, authorized by theResponsible Care Committee, form thefoundation of the initiative. The coreoperating companies and the Nobeokaand Fuji Regions also have their ownResponsible Care Principles in additionto the Asahi Kasei Responsible CarePrinciples.

RC ObjectivesResponsible Care Objectives for theAsahi Kasei Group are formulated eachfiscal year in accordance with the AsahiKasei Responsible Care Principles. Thecore operating companies and theNobeoka and Fuji Regions have theirown Responsible Care Objectives,established in accord with the AsahiKasei Responsible Care Objectives.

RC ImplementationImplementation of Responsible Care isperformed by the core operatingcompanies and the Nobeoka and FujiRegions. Specific measures and actionsare taken by the individual facilities, inaccordance with the applicable RCPrinciples and RC Objectives.

RC AuditsEach year the core operating companiesand the Nobeoka and Fuji Regions auditthe Responsible Care performance ofthe individual facilities under theirauthority. The executive for RC thenaudits the Responsible Careperformance of the core operatingcompanies and the Nobeoka and FujiRegions.

RC CommitteeThe Responsible Care Committee ischaired by the holding companyPresident, and its members comprisethe Presidents of the core operatingcompanies and the General Managersof the Nobeoka and Fuji Regions. Eachfiscal year the Responsible CareCommittee reviews the performanceand results of the previous year, andmakes revision to the Asahi KaseiResponsible Care Principles if deemednecessary.

As the following diagram shows,continuous reevaluation andimprovement is systematically pursuedwith “plan-do-check-act” cycles both forthe Asahi Kasei Group as a whole andfor each core operating company, theNobeoka Region, and the Fuji Region.

16

Responsible Care Management SystemThe efficiency and effectiveness ofAsahi Kasei Group Responsible Care ismaintained in accordance with ourResponsible Care ManagementGuidelines and our Responsible CareImplementation Guidelines. Coreoperating company Presidents holdresponsibility for implementationwithin the core operating companies,

and the President of Asahi Kasei holdsresponsibility for implementationthroughout the group.

Certified compliance withinternationally standardizedmanagement systems is obtained forthe Responsible Care ManagementSystem of the Asahi Kasei Group. ISO14001 environmental management

system certification is obtained forenvironmental protection, ISO 9000-series quality management systemcertification is obtained for productsafety, and an Occupational Health &Safety Management System (OHSMS)is adopted for workplace safety,hygiene, and health.

Check

DoAct

Role of the holdingcompany President

The President convenesannual meetings of theResponsible CareCommittee wherereports of ResponsibleCare performance ateach core operatingcompany are reviewed.

Role of the executive for RCThe executive for RC performs annualResponsible Care Audits of each coreoperating company and the Nobeokaand Fuji Regions. Audits for fiscal 2004were performed from May to June 2005,comprising the items shown below.

• State of Responsible Caremanagement systems.

• State of achievement of fiscal 2003 RCObjectives.

• Progress in responding to issuesindicated in the previous year’s audit.

• Determination of tasks, RC Objectives,and key measures for fiscal 2005.

Role of core operatingcompany Presidents,Region General Managers

Presidents of core operatingcompanies and GeneralManagers of the Nobeokaand Fuji Regions determinespecific targets inaccordance with theResponsible Care Principlesand Responsible CareGuidelines, and preparemedium-term plans toachieve these targets.

Holding company

Core operating companies

RC Principles RC GuidelinesPlans and targets at each core operating company,Fuji Region, and Nobeoka Region

RC Audit

Responsible Care Report

Review Review

President Executive for RCFuji Region General Manager

Nobeoka Region General Manager

Presidents of core operating companies

RC Committee

Plan

Check

DoAct

Plan Plans

Implementation

RC Audit

17

Education and training in the AsahiKasei Group are performed atdifferent organizational levels asappropriate – throughout the group,in individual core operatingcompanies, at individual sites, and atindividual plants. New hires andtransferees receive systematiceducation and training regardingESH at their new assignment. Ateach plant, education and trainingspecific to the production facilitiesand equipment there are performed

as required. Each workplaceindependently performs educationand training as needed for specificpurposes.

In conjunction with the corporatetraining program, the acquisition ofofficially certified qualifications isencouraged and supported. The totalnumber of personnel who haveobtained each class of qualification iswell in excess of the regulatoryminimum required for ouroperations.

Asahi Safety Training (AST)A distinguishing feature of safetytraining at the Asahi Kasei Group isthe AST curriculum, which wasdeveloped in-house based on anergonomic approach. AST is afundamental part of safety trainingthroughout the Asahi Kasei Group atevery plant and workplace.

RC Education and Training

ESH-related InvestmentsMeasures for environmentalprotection, operational safety, andworkplace safety, hygiene, and healthhave long been an important priorityin the investment of managementresources at the Asahi Kasei Group.A record of investments in plant andequipment modifications related toenvironmental and safety measuresbegan in 1970, when the Safety andEnvironmental Department(presently Corporate ESH & QA) wasestablished. As shown at right, theseinvestments have averagedapproximately ¥5 billion per year.

In fiscal 2004, ¥2.4 billion wasinvested in environmental protectionmeasures including prevention ofwater pollution, suppression ofrelease of PRTR-specified substances,and energy conservation, and ¥5.1billion was invested in operationalsafety and workplace safety andhygiene measures including fireprevention systems and plantmodification. A breakdown of each ofthese figures is shown at right.


Investment in environmental and safety modification

Per year Cumulative (¥ billion)

200

180

160

140

120

100

80

60

40

20

0

20

18

16

14

12

10

8

6

4

2

07270 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04

Per yearCumulative

Fiscal year

¥2.4 billion

Fiscal 2004 investmentin environmental protection

Noise, etc. 3%

Soil contamination6%

Chemicalsubstances8%

Fiscal 2004 investment in safety

Tree planting,other 1%

Water32%

Atmosphere19%

Energyconservation

16%

Wastes15%

Others9%

Outmodedequipment

43%

Workplacesafety27%

Explosions,etc.19%

Earthquakes, etc.2%

¥5.1 billion

Nikkei Global EnvironmentTechnology Award

Received by Asahi Kasei Chemicalsfrom Nihon Keizai Shimbun, Inc. for itsecoefficient polycarbonate process.The process was cited for its use ofCO2 as initial feedstock, its eliminationof the necessity to use phosgene andmethylene chloride, and its trouble-free commercial application at a 65,000ton/year plant in Taiwan.

PA AwardReceived by Asahi Kasei Life & Livingfrom the Japan Society of PhysiologicalAnthropology for its Saran Wrap™dispenser box. The PA Award is givenin recognition of products designedwith use, consideration, and evaluationstandards based on an understandingof the various aspects of humanphysiology.

The Saran Wrap™ box was cited forthe physiological investigation duringits development for safety,convenience, and usability, and for theutilization of the results of thisinvestigation into the product design.

Chairman’s Award, 3R PromotionAssociation

Received by the Polyester FilamentDivision of Asahi Kasei Fibers from theReduce, Reuse, Recycle (3R)Promotion Association for its chemicalrecycling of PET resin. The award isgiven to individuals, groups, andbusiness entities in recognition ofoutstanding contribution to the “3Rs.”Awarded since 1992, with the supportof eight government offices andministries.

The division was cited for itscommercial utilization of a chemicalrecycling system to produce polyesterfilament from scrap PET bottles.

18

Third-Party Recognition of ESH Performance

People involved in the start-up and advancementof the recycling system

It’s very gratifying to receive recognition for the PET bottle recycling system, which wasdeveloped with technology originally used to recycle scrap fiber within the plant.Recycling is also being expanded to include polyester clean-room suits, in partnershipwith apparel makers.We look forward tocontinuing to expandoperation with thisecoefficient process, makinga growing contribution tosociety’s overall level ofrecycling.

Kazuyuki ObaraGeneral Manager,Polyester Filament ProductionPlanning & Technology

Compliance Recycling Employment sustainability

Corporategovernance

Managementpolicy

Riskmanagement

Accountability &communication

Ecoefficiency ofshipment

Global warmingprevention

Ecoefficiency ofproducts & services

Material & energyintensity

Chemicalsubstance

control

Soilpollution

Waterresources

Biologicaldiversity

Responsibility toconsumers

Supporting forcommunity life

Respect &support forlocal culture

Safe & healthyworkplace

Equalopportunity

Balance of work &personal life

Suppliers’sustainability

Sustainability &corporate

culture

19

Sustainable management rating

Evaluation by Japan’s SustainableManagement Rating Institute hasresulted in classification of the Asahi

Kasei Group as a “Green TopRunner” for the third consecutiveyear. The findings of this evaluationwill be incorporated in the continuous

improvement of our Responsible Careinitiative.


ComplianceCompliance RecyclingRecycling Employment sustainabilityEmployment sustainability

CorporategovernanceCorporate

governance

Managementpolicy

Managementpolicy

SustainableManagement Tree

Economicprosperity

Environmentalprotection

Socialequity

Riskmanagement

Riskmanagement

Accountability &communicationAccountability &communication









Chemicalsubstance

control

Chemicalsubstance

control

Soilpollution

Soilpollution

Waterresources

Waterresources

Biologicaldiversity

Biologicaldiversity



Supporting forcommunity lifeSupporting forcommunity life





Equalopportunity

Equalopportunity



Suppliers’sustainabilitySuppliers’

sustainability

Philosophy &Strategy

Performance

Philosophy &Stategy

System &Organization

Performance

Excellent Good Poor No Good

Fallen leaf

Not Applicable

NO

JSMRI Raiting for Asahi Kasei, 2005


culture


culture

Superior

20

EnvironmentalProtectionEnvironmentalProtectionSummary results

Plants with ISO 14001 certification

Fiscalyear

100

80

60

40

20

0

ISO14001

An international standard forenvironmental management systemswhich meet specified requirements toprevent and minimize environmentaleffects and environmental risks.

The Asahi Kasei Group is committed toavoiding environmental pollution as aneffect of business operations.The day-to-day effort to preventpollution ranges from the reliableoperation of effluent water treatmentfacilities and effluent gas treatmentequipment, to preparing systems forswift and appropriate response toemergency situations.

When an accident does happen werespond immediately to prevent orminimize pollution, and follow upwith an analysis of how it could havebeen prevented. The results of theanalysis are shared throughout theAsahi Kasei Group.

Prevention of polluting accidents

Polluting accidents include instanceswhere regulatory limits foratmospheric release, effluent waterquality, groundwater contamination, orsoil contamination are exceeded, andinstances where a community isaffected as by unlawful waste disposal.In fiscal 2001 hypochlorous acid wasreleased in effluent water from ourWakayama Plant, killing a few dozenfish. The release was immediately

stopped, and no other effects resulted.In fiscal 2002 it was discovered that thegroundwater within the grounds of ourplant and laboratory site in Fuji hadbeen contaminated bytetrachloroethylene. No contaminationwas found beyond the site grounds.Barrier wells were bored to ensureagainst the contamination spreading,and groundwater purification measureswere instituted.

Fiscal year

No. of pollutingaccidents

2000

0

2001

1

2002

1

2003

0

2004

0

ISO 14001 certificationISO 14001 certification is acquired tosystematize the environmentalprotection elements of ResponsibleCare at the Asahi Kasei Group.Presently, over 70% of all plants haveacquired ISO 14001 certification, andwe plan to raise this to 90% by the endof fiscal 2005.

2001 2002 2003 2004 2005Target

61 6471 76

90

RC objectives

Avoid all environmental pollution fromaccidents.

Acquire ISO 14001 certification at90% of plants.

Reduce unit energy consumptionby ≥1%.Reduce greenhouse gas emissionsby ≥1%.

Reduce final disposal volume ofindustrial waste by 33% from fiscal2000 level.

Reduce release and transfer ofPRTR-specified substances,including hazardous atmosphericpollutants.

No environmental pollution from accidents.

ISO 14001 certification acquired at approximately 80% of plants.

Unit energy consumption reduction target achieved.Maintained approximately 50% reduction of greenhouse gas emissions from fiscal 1990.

Approximately 35% reduction of final disposal volume of industrial waste.

PRTR releases to air and water reduced by approximately 34%; transfer increased by approximately 23%; releaseof hazardous atmospheric pollutants reduced by over 90% from fiscal 1995 level.

%

21

EnvironmentalProtection Reduction of CO2 emission from

power generation is achieved throughcogeneration of steam and electricityand through process modification toobtain greater energy efficiency. Wehave already surpassed the JCIA targetof reducing unit energy consumptionto 90% of the fiscal 1990 level by fiscal2010. Emissions of CO2 are now lowerthan in fiscal 1990. We continue towork toward further reductions in unitenergy consumption throughexpanded utilization of cogenerationand plant modification for energyconservation.

Measures for reduction ofgreenhouse gas emissions fromproduction processes includedecomposition of by-product N2Ofrom adipic acid production (see p. 4)and recovery of greenhouse gasesused as solvents and etching agentsto prevent their atmospheric release.

Greenhouse gases used as plasticfoaming agent at our Suzuka Plantare being phased out (see p. 5).The phase-out of greenhouse gasesused in other production processes,largely as solvent, is also planned.

The Asahi Kasei Group was among theearliest to implement action to curtailemission of greenhouse gases*. AsahiKasei has also played a leading role inthe preparation and institution of theemissions reduction targets of theJapan Chemical Industry Association

(JCIA) and the Japan BusinessFederation (Nippon Keidanren).

We implement emission reductionmeasures in three areas, as shown atright. Fiscal 2004 emissions were 6.1million tons CO2-equivalent, areduction by half from fiscal 1990 and

far surpassing the 6% Kyoto Accordreduction target for Japan.

* Carbon dioxide (CO2), nitrous oxide (N2O),methane (CH4), hydrofluorocarbons(HFCs), perfluorocarbons (PFCs), andsulfur hexafluoride (SF6)

Curtailing greenhouse gas emissions

• Curtailment of CO2 emission from power generation.

• Curtailment of emissions of greenhouse gases from production processes.

• Phase-out of greenhouse gases as process materials.

Unit energy consumption*

9493 95 96 97 98 99 00 01 02 03 04

100

90

80

70

60

50

Inde

x(fi

scal

1993

=10

0)

Fiscal year

Target

* In terms of kiloliters crude oil equivalent pertons product output, as converted tobenchmark product.

0

3

6

9

12

15

Baseline emissions

Glo

balw

arm

ing

pote

ntia

l(m

illion

sof

tons

CO

2eq

uiva

lent

)

2004 2010 target

12.06

1996

12.74

1995

11.77

1997

13.23

1998

12.03

2000 2001 2002 2003

5.60

Greenhouse gas emissions

SF6 PFC HFC CH4 N2O CO2

6% reduction

8.99

5.90 5.73 5.636.10

1999

6.18

Fiscal year

Baseline

• CO2-equivalent emission of six greenhouse gases in accordance with the Law concerning the Promotion of Measures to Cope with Global Warming.• Fiscal 1990 baseline for CO2, N2O, and CH4; fiscal 1995 baseline for HFCs, PFCs, and SF6.• Increase in fiscal 2000 due to malfunction of N2O decomposition equipment; increase in fiscal 2004 due to number of plant shut-down/start-up cycles.

22

The Asahi Kasei Group has sevenhydroelectric power generation plants.The clean energy generated at these plantsmeets 12% of our electricity needs.Generation of the equivalent amount ofpower at thermoelectric plants would resultin approximately 130,000 tons of CO2

emissions annually.*

* Assuming 436 g CO2/kWh.

Company-owned vehiclesThe Asahi Kasei Group owns some1,800 vehicles for use in marketingand within plant grounds. About halfof these are low-pollution vehicles,including natural gas, electric, andlow-emission vehicles (LEVs). About15% of the low pollution vehicles are

forklifts and other vehicles usedwithin plant grounds. We areincreasing the number of low-pollutionvehicles through a phased transitionwhen older vehicles need to bereplaced. At Asahi Kasei Homes,subcompact cars are being phased in

for reduced fuel consumption andlower emissions, with the processabout one third complete in fiscal2004. Asahi Kasei Pharma leases 335vehicles for marketing, and atransition to LEVs was completed inFebruary 2005.

Measures to alleviate environmental effects of physical distribution

• Increasing sales lot sizes• Transport mode changeover to roll-on/roll-off ships, ferries, and rail• Mixed loading of materials for home construction

• Product swaps with other producers• Repositioning of stock points for optimal distribution• Sharing of pallets with other producers to shorten empty pallet return distances

• Direct shipment to users• Direct reloading from large trucks to smaller trucks, without temporary warehousing

• Shipment of resins in flexible containers or bulk• Use of intermodal containers, owned by Asahi Kasei and by shippers

• Compliance with environmental laws and regulations• Advancement of ISO certification• Promotion of energy-efficient driving practices• Conversion to energy-efficient transportation modes• Promotion of efficient loading

Improving unit energy consumption in shipment

Reduction of energy consumption byshortening shipment distances

Reduction of energy consumption in storage

Use of returnable packaging to reduce materialwaste

Promotion of energy conservation by firmscontracted for physical distribution throughphysical distribution safety conferences andinspections

Electricity sources, fiscal 2004

Purchased35%

Hydroelectric12%

Thermal53%

Main environmental aspects, fiscal 2004

Inputs Asahi Kasei Group Outputs

Water250 million m3

Energy6.3 x 1016 J

Feedstocksincluding 5.1 milliontons PRTR-specified substances

Asahi Kasei FibersAsahi Kasei ChemicalsAsahi Kasei Life &

LivingAsahi Kasei

ConstructionMaterials

Asahi Kasei HomesAsahi Kasei EMDAsahi Kasei Pharma

Atmospheric emissions

PRTR-specified substances

Effluent water

Industrial waste

SOx: 7,200 tonsNOx: 5,400 tonsSoot and dust: 210 tonsPriority atmospheric pollutants: 110 tonsGreenhouse gas emissions:

6.1 million tons CO2 equivalent

Releases:970 tons To air91 tons To water0 tons To soil

Transfers: 4,400 tons

Effluent volume: 230 million m3

COD of effluent: 1,500 tons

Effluent waste: 159,700 tonsOf which, landfilled: 17,400 tons

Note:• Data shown for plants and laboratories only.• Energy inputs include hydroelectric power.• PRTR transfers are included in effluent solid waste.

Clean energy by hydroelectric generation Alleviating the environmental effectsof physical distributionA wide range of measures are employedto reduce energy consumption andmoderate the environmental effects ofphysical distribution through improvedefficiency.

23

RecyclingThe shortage of landfill sites in Japanand concern about resource depletionhas prompted public discourse aboutthe need to increase recyclingthroughout society, and in 2000 theBasic Law for Establishing a Recycling-Based Society came into effect.

The Asahi Kasei Group iscontributing to this effort by workingtoward zero emission of industrialwaste through the “3-Rs” of reduction,reuse, and recycling. Where weconsign the off-site treatment ofindustrial waste, records are kept in

waste disposal manifests, and theconsigned firms and disposal sites areperiodically inspected to ensure thatproper disposal is performed inaccordance with sound systems ofcontrol.

Waste generated from housingoperations includes leftovermaterials, packing materials, andtrimmings from new construction,and waste generated from thedismantling of old homes to bereplaced. Asahi Kasei Homes worksto reduce final disposal amounts bysuppressing waste generation in bothnew construction and dismantling,and by recycling wastes which aregenerated.

In fiscal 2004, priority was given toreducing waste generation from newconstruction by precutting materials

at the factory, and by minimizing useof packing materials. To reducewaste disposal, the sorting of waste tofacilitate recyclability is vital, and apolicy of thorough waste sorting hasbeen instilled among personnel andcontracted firms involved. In thedismantling of old homes, wood andconcrete are sorted for recycling.Progress has been made in theidentification of firms which can usethese materials as resources. Infiscal 2004, final disposal of wastefrom new home construction wasreduced by some 5% from fiscal 2003.

Zero emission of industrial waste

Reducing final landfill disposal volumetoward zero involves measures tominimize the amount of industrial wastegenerated, and reusing or recyclingindustrial waste as material or energy.

Industrial waste treatment and disposal, fiscal 2004

Recycling87.9 (24.7%)

On-site treatment Off-site treatment

Thousands of tons

Volumereduction107.7 (30.3%)

Recycling124.1 (34.9%)

Volumereduction18.2 (5.1%)

Wastegenerated355.4 (100%)

Effluent waste159.7 (44.9%)

Onsite landfill0.0 (0%)

Final disposal17.4 (4.9%)

Note:Not including waste generated from non-recurring events such as dismantling closed plants or fromdismantling old homes when constructing new homes sold by Asahi Kasei Homes.

2000

New construction

Dismantling

2001 2002 2003 2004

55.7

28.4

22.125.7 23.6

Final disposal of industrial wastegenerated at construction sites

0

10

20

30

40

50

60

Fiscal year

Environmental Protection

The volume of waste generated isminimized through processesoptimization, recovery of usefulsubstances for reuse or recycling asfeedstock or material for otherproduction processes, and recoveryof energy by using waste material asfuel. As shown below, the volume ofindustrial waste transferred off sitefor final disposal was reduced byapproximately three-fourths betweenfiscal 1993 and fiscal 1999.

Since then, however, progress hasslowed. To gain renewed impetus forfurther reduction, we have adopted astretch target of reducing industrialwaste emission to zero by fiscal 2010.

Our objective for fiscal 2004 was a33% reduction from fiscal 2000, and a35% reduction was achieved. This

was a 27% reduction from fiscal 2003,as important progress toward zeroemission was made during the year.

0

20

40

60

80

100

120

102.3 101.789.7

67.762.1

49.3

27.1 26.8 25.4 25.9 23.817.4

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Off-site final disposal waste volume Off-site final disposal waste bycategory, fiscal 2004

Fiscal year

Volu

me

(thou

sand

sof

tons

)

Volu

me

(thou

sand

sof

tons

)

Glass, ceramics29%

Others3%

Sludge27%

Plastic waste37%

Waste fiber 3%

Construction debris 1%

Note:Not including waste generated from non-recurring events such asdismantling closed plants or waste generated from dismantling oldhomes when constructing new homes sold by Asahi Kasei Homes.

Progress toward zero emission of industrial waste

Reduction of industrial waste from housing operations

24

Door/window frames withreturnable packing

Door with returnable packing

Asahi Kasei Homes is advancing theapplication of a system for returnablepacking materials, through jointdevelopment of returnable packingwith suppliers of fixtures and buildingmaterials for home construction, andby utilizing RFID tags for packingmaterial tracking.

Asahi Kasei Fibers developed a large-scale process to recover polyesterfeedstocks from used PET beveragebottles based on its chemicalrecycling technology for recovery ofpolyester feedstocks from waste fiberat its polyester filament plant. Thisoutstanding new process enables therecovery of feedstocks of purityequivalent to that of virginfeedstocks. Further, reaction residuecan be used as fuel in electricitygeneration and as a cementfeedstock, enabling operation with nowaste for disposal.

A recycling plant with a capacity of3000 tons/year, equivalent to 100million 500 mL PET bottles, beganoperation in fiscal 2001. In fiscal 2004some 748 tons, or 23 million 500 mLPET bottles, were recycled. Inaddition to PET bottles, sources ofpolyester material for recyclinginclude polyester clean-room suitsused in the electronics industrywhich are collected in coordinationwith an apparel manufacturer.Polyester filament made fromrecycled material is being marketed

as Ecosensor™, with production of3000 tons.

In 1997 Asahi Kasei ConstructionMaterials became the first of Japan’sALC (autoclaved lightweight concrete)producers to receive designation bythe Minister of the Environment for“wide-area recycling” of industrialwaste. Trimmings of ALC panels fromconstruction sites were recycled underthis system until September 2004,when the designation system wasreplaced with a certification system.

On September 17, Asahi KaseiConstruction Materials obtainedcertification for wide-area recyclingunder this new system. Thiscertification makes it unnecessary forthe company to obtain a wastetreatment license to recycle trimmingsof ALC panels from construction sites.ALC trimmings are returned from sitesof new building or remodeling to plantsin Hozumi, Iwakuni, and Sakai, where

they are recycled as material for newHebel™ ALC panels. In fiscal 2004, 796tons of material was recycled.

In addition to this in-houserecycling, ALC trimmings frombuilding sites in the Kanto area arerecycled on consignment to producematerial for cement and lightweightartificial soil.

0

100

200

300

400

500

600

700

900

800

171

646 622

748

2001 2002 2003 2004

PET bottle recycling

Fiscal year

Tons

ALC trimmings recycled byAsahi Kasei Construction Materials

0

100

200

300

400

500

600

700

800

900

375

2000

508

2001

630

2002

749

2003

796

2004

HebelTM ALC panels

ALC trimmings

Certified plants of Asahi KaseiConstruction Materials

Recycling consignee(Kanto area)

Sakai Plant

HozumiPlant

IwakuniPlant

Fiscal year

Tons

Returnable packing materials for housing operations

Chemical recycling of polyester

Recycling trimmings from ALC panels

Buildingsites

Cement material,lightweight artificial soil

Recycle flow for trimmings of Hebel™ ALC panels

25

Preventing air pollutionSince the 1970s, the Asahi Kasei Grouphas undertaken a number of measuresto curtail emissions of sulfur oxides(SOx), nitrogen oxides (NOx), and sootand dust. These include flue gas

desulfurization, denitrification, electricdust collection, changeover to low-sulfurfuel, combustion process improvement,and other measures which have resultedin a large reduction in emissions.

Emissions are maintained well belowregulatory limits, meeting the stringentstandards set in accords with localauthorities and voluntary corporatetargets for emission control.

Preventing water pollutionMeasures implemented throughoutthe Asahi Kasei Group have resultedin a significant reduction in theamount of pollutants in effluent water.As shown at right, chemical oxygendemand (COD) of effluent – astandard indicator of pollution level –has been maintained well belowpermissible levels at all sites in termsof both COD concentrations and totalCOD.

Sulfur oxides (SOx)

Sulfur oxides are formed in nature andthrough industrial activity. Industrialsources include combustion of crude oil,fuel oil, or coal which contain sulfurimpurities, and incineration of wasteswhich contain sulfur. Sulfur dioxide(SO2) is most common, but some sulfurtrioxide (SO3) also forms. The notation“SOx” is used to indicate both sulfuroxides inclusively.

Nitrogen oxides (NOx)

Nitrogen oxides are formed in nature andthrough industrial activity. Industrialsources include combustion at thermalpower plants, factory boilers, internalcombustion engines, and incinerators.The notation “NOx” is used to indicateboth nitric oxide (NO) nitrogen dioxide(NO2) inclusively.

Measures to prevent soil andgroundwater contamination areperformed in accordance with AsahiKasei Group guidelines. In the eventthat soil or groundwater contaminationis discovered at one of our sites, wepromptly report the matter to thesurrounding community, relevant

authorities, and the media, and takeaction to ensure against effects on thesurroundings.

In the past we have discovered soiland groundwater contamination at oursites in Nobeoka, Moriyama, and Fuji.Measures were immediatelyimplemented to prevent the

contamination from spreading beyondthe site grounds. Soil remediation wasperformed, and ongoing groundwaterpurification programs wereestablished, including monitoring ofgroundwater samples to confirm thatcontamination has not spread beyondthe site grounds.

Chemical oxygen demand (COD)

Chemical oxygen demand is an indicatorof water pollution by organic substances.COD is expressed in terms of the amountof oxygen required by an oxidizer tochemically oxidize the organic substancescontained in the water.

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

8,485

2000 2001 2002 2003 2004

7,5435,941 6,144 7,179

SOx emissions

2000 2001 2002 2003 2004

6,8396,431 6,099

4,881 5,365

NOx emissions

0

2,000

4,000

6,000

8,000

10,000

12,000

2000 2001 2002 2003 2004

309 260 282 224 211

Soot and dust emissions

0

1,000

2,000

3,000

4,000

Other sitesKawasakiOhitoFujiMoriyamaMizushimaNobeokaPermissible level

Em

issi

on(to

ns)

Em

issi

on(to

ns)

Em

issi

on(to

ns)

Fiscal year Fiscal year Fiscal yearNote:• Decreases in NOx and soot and dust emissions in fiscal 2003 resulted from the divestment of Shin Nihon Salt and Ako Kaisui, and the termination of in-house

power generation in Fuji.• At some sites, regulation by total pollutant amount applies for some pollutants in addition to concentration limits. Permissible levels shown are the sums of gross

emission limits where they apply and concentration limits times amount of emitted gas where they do not. Permissible levels therefore fluctuate from year to yearwith fluctuations in production volumes.

Reducing the environmental burden

2000 2001 2002 2003 2004Fiscal year

1,971 2,164 1,9751,438 1,549

COD of effluent

0

1000

2000

3000

4000

5000

6000

2000 2001 2002 2003 2004Fiscal year

361 349 339

249 232

Effluent water volume

0

50

100

150

200

250

300

350

400

CO

D(to

ns)

Effl

uenc

e(m

illion

sm

3 )

Note:• At some sites, regulation by total COD applies in addition to COD concentration limits. Permissible levels shown are the sums of total COD limits where they apply

and concentration limits times amount of effluent water where they do not. Permissible levels therefore fluctuate from year to year with fluctuations in productionvolumes.

• Decreases in COD of effluent and effluent water volume in fiscal 2003 resulted from the divestment of Shin Nihon Salt and Ako Kaisui, and the termination of acrylicfiber production in Fuji.


Soil and groundwater contamination

26

The Asahi Kasei Group monitors therelease and transfer of substancesdesignated for PRTR by the JapanChemical Industry Association (JCIA)and PRTR-specified substances definedby the PRTR Law (Law concerningReporting, etc. of Release of SpecificChemical Substances to theEnvironment and Promotion of theImprovement of their Management).Priority for reduction is based ondegree of hazardousness and amount ofrelease.

Of the 354 PRTR-specified substances,96 were handled in the Asahi KaseiGroup in fiscal 2004, with 968 tonsreleased to the atmosphere, 91 tonsreleased to water, no release to soil, and4,381 tons transferred as components ofwaste. Releases to the atmosphere andto water were reduced from the previousyear, but transfer in industrial wasteincreased. The increase was largely dueto higher production volumes, whichresulted in more solvent-containingwaste transferred off site for processingand disposal.

The JCIA has led a voluntaryprogram to reduce the release ofhazardous atmospheric pollutants.The first phase of this programtargeted reductions from fiscal 1995levels to be achieved by fiscal 1999,and the second phase targetedreductions from fiscal 1999 levels tobe achieved by fiscal 2003.

The first phase target for the AsahiKasei Group was a 30% reduction, anda reduction of 45% was achieved. Oursecond phase target was an 82%reduction, and a reduction of 78% wasachieved. In fiscal 2004 we met thesecond phase target, achieving a totalreduction of more than 90% from1995.

Volatile organic compounds (VOCs)A fiscal 2004 revision to Japan’s AirPollution Control Law provides for theregulation of VOC emissions.We currently are studying theinstallation of facilities to recover andprocess VOCs and the installation ofVOC measurement devices to enablecompliance when the new regulationscome into force. At the same time, theJCIA is formulating plans for thevoluntary reduction of VOC emissionsbeyond that legally mandated.

Polychlorinated biphenyls (PCBs)Disused condensers, transformers, andfluorescent lamp ballasts which containPCBs are emplaced in stainless steel

vessels, recorded in a ledger, andstored under strict control. These arescheduled to be disposed of by 2016though consignment to facilitiesequipped to render them harmless.

Stratospheric ozone layer-depletingsubstancesStratospheric ozone layer-depletingsubstances used in the Asahi KaseiGroup include freezer refrigerants andsolvents. Refrigeration equipment isbeing replaced or modified with thebest practical technology for operation

without refrigerants specified as ozone-depleting. We are also conductingresearch on the substitution of solvents,and plan to cease using ozone layer-depleting substances when technologyfor their substitution is established.

BiodiversityWe have long worked to extend theamount of greenery and gardeningspace at our plant grounds.The preservation of biodiversity withinand surrounding our plants and officesis also given due consideration.

Hazardous Atmospheric Pollutants

Japan’s Air Pollution Control Law defines“hazardous atmospheric pollutants” assubstances which occur as atmosphericpollutants and have the potential to damagehuman health given continuous exposure.The Central Environment Council hasspecified 22 substances for priority actionbased on understanding of health risks.Regulations also require corporations tomonitor and control atmospheric release of12 of these priority atmospheric pollutants,with measures for curtailment performed ontheir own initiative. The 12 substances –

selected based on potential carcinogenicity,amount of production and importation, andpresence detected in the atmosphere – areacrylonitrile, acetaldehyde, vinyl chloridemonomer, chloroform, 1,2-dichloroethane,dichloromethane, tetrachloroethylene,trichloroethylene, 1,3-butadiene, benzene,formaldehyde, and sulfides and sulfates ofnickel. The JCIA recommends substitutionof ethylene oxide in this list in place ofsulfides and sulfates of nickel, as membercompanies only handle the latter in nominalamounts.

Pollutant Release andTransfer Register (PRTR)Under the PRTR Law, releases to theenvironment and off-site transfers ofspecific hazardous chemical substancesmust be monitored and recorded for eachproduction facility and operating site.Results are reported to the government,which publishes aggregate results.

1996 1997 1998 1999 2000

Rel

ease

(tons

)

2001 2002 2003 2004 2nd phasetargetFiscal year

1,2921,208

883

727

543

281211

168 134114

Release of priority atmospheric pollutants

0

300

600

900

1,200

1,500

1995

1,326FormaldehydeBenzene1,3-ButadieneEthylene oxideTrichloethyleneTetrachloroethylene1,2-DichloroethaneDichloromethaneChloroformVinyl chloride monomerAcetaldehydeAcrylonitrile

Releases of PRTR-specified substances

to water

to the atmosphere

0

1000

2000

3000

4000

5000

6000

2000 2001 2002

Tons

2003 2004

4,894

2,441

1,724 1,6061,059

Pollutant release and transfer register (PRTR)

Reduction of hazardous atmospheric pollutants

27

“Green procurement” is an aspect ofour Responsible Care program whichforms a natural extension of our long-standing safety management system forprocurement of feedstocks andmaterials with minimal environmentalimpact. When products are purchased,their dangers, hazards, and relevantregulations are researched andconfirmed. If deemed necessary,improvements are requested of the

supplier. Appropriate strict controlmeasures are instituted to ensure legalcompliance for environmental integrity.For the past two years, CorporateProcurement & Logistics has surveyedsuppliers in accordance with our GreenProcurement Guideline. Suppliers wereevaluated based on survey results, andimprovements were requested ofsuppliers whose environmentalperformance appeared unsatisfactory.

The program of green procurementis being enhanced by expanding thesurvey focus to include compliance,human rights, socially responsiblemanagement, and public service, inaddition to environmental performance.Guidance to suppliers will be extendedto include on-site visits.

Tracking the cost of environmental protection measures

The cost of measures forenvironmental protection in fiscal2004 was tracked at core operatingcompanies Asahi Kasei Chemicals,Asahi Kasei Life & Living, and AsahiKasei EMD, in accordance with costclassification standards promulgatedby the Ministry of the Environment.

The ¥1.36 billion investment atAsahi Kasei Chemicals was notably tocurtail release of hazardousatmospheric pollutants and for energyconservation. The ¥6.15 billionexpense was notably to curtail NOxand SOx emissions and formaintenance and monitoring of waterquality.

The ¥1.06 billion investment atAsahi Kasei Life & Living was notablyfor replacement of foaming agent forfoamed plastic products, enabling theelimination of use of ozone-layerdepleting substances and a largereduction in greenhouse gasemissions. The ¥1.37 billion expensewas notably for waste treatment,recycling, and development ofbiodegradable plastic products.The expense also includedenvironmental training for personneland community fellowship events.

The ¥80 million investment atAsahi Kasei EMD was notably tocurtail release of hazardousatmospheric pollutants and forwastewater treatment. The ¥490million expense was notably fortreatment of industrial waste and forrecycling.

Green procurement

Green procurement in electronicsResponsible Care at Asahi Kasei EMD is guided bythe concepts of “clean manufacturing” and “greenproducts.” Throughout the electronics industry,priority is given to materials and components withreduced environmental burden. In addition to itsown in-house efforts, Asahi Kasei EMD works withits material suppliers to achieve enhancedperformance throughout the supply chain.

Suppliers are surveyed for their environmentalmanagement, social responsibility, and the contentof hazardous materials in their products. While mostsuppliers received high marks, some specific areasfor improvement were identified. Asahi Kasei EMDis working together with the relevant suppliers toachieve enhanced performance.


Green procurement guideline and survey

Asahi Kasei Chemicals (millions of yen)

Cost class Principal measures Investment Expense

Combined operating area

Pollution prevention

Global environmentalprotection

Resource circulation

Upstream and downstream

Management

Research and development

Community outreach

Environmental damage

Total

4,171

2,932

246

993

62

939

785

4

193

6,153

Curtailed release of atmospheric pollutants

Energy conservation

Treatment of industrial waste

Using flexible containers to reduce environmentalburden of packing materials

Monitoring

Development of biodegradable chemicals

Community fellowship and dialog

Compensation pursuant to Pollution Health DamageCompensation Law, groundwater purification

Principal effects

Year-on-yearemissionsreductions.

Release ofatmosphericpollutantsreduced from111.3 to 85.6tons.

Release ofPRTR-specifiedsubstancesreduced from504 to 403tons.

com

pris

ing

Asahi Kasei Life & Living (millions of yen)







Management


Community outreach


Total

1,034

4

1,016

14

0

1

0

0

23

1,058

942

69

271

601

10

85

249

2

78

1,365

Management of effluent water, noise control

Installation of equipment for phase-out of HFC foamingagent, energy conservation

Treatment of industrial waste, recycling of feedstocks

Recycling of containers and packaging, greenprocurement

Exhibition at eco-products fair, gardening on plantgrounds, education of personnel

Development of biodegradable plastic products,development of technology for substitution of HFCfoaming agent

Litter pick-up, Earth Day participation

Remediation of groundwater contamination

Principal effects


HFC emissionsreduced from19 to 15 tons.

Release ofPRTR-specifiedsubstancesreduced from734 to 373tons.

com

pris

ing

Asahi Kasei EMD (millions of yen)







Management


Community outreach


Total

69

62

0

7

0

10

0

0

0

79

330

97

15

218

66

78

19

1

0

494

Elimination of use of dichloromethane, effluent watertreatment

Air compressor energy conservation

Treatment and recycling of industrial waste

Recycling of containers and packaging, greenprocurement

Measurement and monitoring of environmental burden,tree-planting on factory grounds

Development products with reduced environmentalburden

Community fellowship and dialog, litter pick-up

Remediation of groundwater contamination

Principal effects


Release ofatmosphericpollutantsreduced from17.9 to 0.05tons.

Release ofPRTR-specifiedsubstancesreduced from41 to 10 tons.

com

pris

ing

Note: Sums may not equal totals due to rounding.

1,175

953

194

28

0

126

59

0

4

1,363

28

Asahi Kasei Group guidelines and standards for ecoefficient products and technologies which incorporate the principlesof life cycle assessment and green and sustainable chemistry are used in the development of products and technologieswhich enable resource conservation, energy conservation, and waste reduction.

Ecoefficient Products and Technologies

Company Product/technology Ecological aspects

Category*

Res

ourc

eco

nser

vatio

n

Che

mic

alsu

bst

ance

s

Was

tere

duc

tion

Oth

er

Made from natural cotton linter, biodegradable.Eco Mark certification for products containing atleast 70% Bemberg™. Oeko-tex 100 certified.

Made from natural cotton linter, biodegradable.Eco Mark certification for Haize™ gauze, madefrom Bemliese™.

Chemically recycled from post-consumer PETbottles and other used polyester products.Eco Mark certified.

Waste reduction by extending usable life ofindustrial cleaning agents and treating bilgewater.

Spunbond for civil engineering made withEcosensor™ chemically recycled polyester.Eco Mark certified.

Made without organic solvents. Oeko-tex 100certified products available.

Oeko-tex 100 certified.

Reduced number of parts, reduced materialsconsumption, reduced weight.

Lighter parts and elimination of need for paintingby improving surface appearance withheightened resin flow.

Controlled release of fertilizer to avoid excessiveapplication. Photodegradable, biodegradablecoating is restored to the natural cycle.

Flame retardance without using halogens.

Enables production of recyclable moisture-resistant paper and release paper.

Eliminates ammonium sulfate by-product.

Eliminates the need for the hazardous phosgeneas reactant and methylene chloride as solvent.

Flame-retardant polycarbonate containing nohalogen or phosphorus compounds.

System for rapid adsorption of VOCs whichcause sick house syndrome.

Reduces the amount of waste during materialchangeover.

Liquid cleaning agent made of 100% naturalingredients to prevent soil and air pollution.

Enables low-temperature hardening (90˚C) forenergy conservation.

Resource-efficient process with minimal wastegas and waste liquid.

For polyols with outstanding hydrolysisresistance, as water-soluble paints andadhesives. Reduces VOC emissions fromsolvents.

Metal cleaning, precision cleaning, electronicscleaning without ozone-depleting halogencompounds.

Bemberg™ regenerated cellulose filament

Bemliese™ regenerated cellulose nonwoven

Ecosensor™ polyester

Eutec™ oil-water separators

Eltas™ EL, ET, and E0 series spunbond

Lamous™ and Sensuede™ artificial suede

Fusion™ and Cubit™ honeycomb-structurecushioning

AGI hollow plastic molding technology

AMOTEC™ CO2-assisted molding technology

Long™ coated fertilizer and Ecolong™environmentally degradable coated fertilizer

Halogen-free flame-retardant acrylonitrile-butadiene-styrene resins

Styrene-butadiene latex coating for moisture-resistant paper and release paper

Methyl methacrylate production process bydirect oxidative esterification

Phosgene-free, methylene chloride-freepolycarbonate production process

Asahi Kasei PC™ non-halogen, non-phosphorusflame-retardant polycarbonate

Suming™ process

Asaclean™ purging agent for plastic moldingmachines

Buster Mild™

Duranate™ MF-K

Cyclohexanol production process fromcyclohexene

Asahi Kasei PCDL™

Halogen-free cleaning agent

Asahi Kasei FibersCorp.

Asahi Kasei ChemicalsCorp.

29


Category*

Eliminates the need for asbestos and mercury inchlor-alkali production.

Purification of drinking water, treatment of wastewater; enables closed water systems inindustrial and commercial applications.

Microbial enzymes and chemical deodorantsused to accelerate bioprocessing, for sludgevolume reduction, and for deodorization ofwaste water.

Biological water treatment technologygenerating 1/20 the excess sludge of ordinaryprocess.

Saran™ fiber biological membrane carrier forwater treatment.

Made from punch-out scrap from biaxiallyoriented polystyrene sheet. EcoMark andMebiusMark recycled labels acquired.

Improved kitchen hygiene, prevention of greaserelease in wastewater.

Containers and cups made of biodegradableplastic.

Biodegradable plastic used in envelopewindows, etc. Certified as “GreenPla” by theBiodegradable Plastics Society.

High-performance home insulation panels, forenergy conservation.

Airtight, high-performance insulation system forenergy conservation in wooden homes.

60-year durability enables reduction of wastefrom demolition and rebuilding.

Detection of oil leaks and monitoring of industrialwaste water for surface oil.

Surplus sludge from treatment of waste liquidfrom fermentation is dehydrated and sold asorganic fertilizer.

Elimination of hazardous substances andrecovery of useful substances from exhaustgases.

Activated sludge treatment. High-performancefluorine adsorption.

Treatment of highly concentrated organic wasteliquids, and waste liquids containing inorganicsalts.

Capable of analyzing endocrine disruptors anddioxins in addition to ordinary environmentalanalyses.

Establishment of efficient and effectiveenvironmental management systems by“flow chart and format” method.

Membrane electrolysis process

Microza™ MF and UF modules and systems

Environmental reagents (Asahi Kasei CleanChemical Co., Ltd.)

SEAS™ process (Asahi Kasei Clean ChemicalCo., Ltd.)

Acclima™

OPS™ film

Grease trap cleaning product series

Green Promax™

Bioclear™

Neoma™ foam

Suny Lite™ SD airtight insulation system

Long Life Home products

Apolarm™ C oil leak detector, Apolarm™ Mwaste water monitor (Asahi Kasei TechnosystemCo., Ltd.)

Dehydrated microbe fertilizer no. 2 [HokkaidoNo. 2813] (Asahi Kasei N&P Co., Ltd.)

Exhaust gas treatment technologies

Waste liquid treatment equipment

Waste liquid incinerator

Environmental analysis

Environmental consulting

Asahi Kasei ChemicalsCorp.

Asahi Kasei Life &Living Corp.

Asahi KaseiConstruction MaterialsCorp.

Asahi Kasei HomesCorp.

Asahi Kasei EMD Corp.

Asahi Kasei PharmaCorp.

Asahi KaseiEngineering Co., Ltd.

Toyo Kensa CenterCo., Ltd.

Asahi Kasei AmidasCo., Ltd.

Company Product/technology Ecological aspects

* Resource conservation includes energy conservation, water conservation, and reduced consumption of raw materials.Chemical substances indicates reduction in use or effluence of chemical substances, or removal of chemical substances bytreatment of waste water or exhaust gas.Waste reduction indicates reduction of the amount of waste generated or reduction of waste through recovery or recycling.

Res

ourc

eco

nser

vatio

n

Che

mic

alsu

bst

ance

s

Was

tere

duc

tion

Oth

er

Neoma™ foam insulationPhenolic foam thermal insulationpanels made without CFC foamingagents, featuring outstandinginsulation performance and safety.Widely used in homes and otherbuildings, with growing use in otherapplications such as the doors ofrefrigerated trucks.

The environmental performance ofNeoma™ has been recognized by anOutstanding Energy ConservationAward from the Energy ConservationCenter, Japan (ECCJ) in 2000 and anAward for Excellence in Ozone LayerProtection/Global WarmingPrevention from the Nikkan KogyoShimbun in 2003.

30

Hebel Haus™ environment-friendly“long life home”The “long life home” means thedurability and functionality to maintainownership satisfaction over more thanhalf a century. Given the seriousshortage of landfills, and that homeshave an average life span of 26 years inJapan, “long life home” products whichlast for over 60 years make a valuablecontribution to sustainability bylessening the need to demolish andrebuild. Performance features includethe utilization of natural sunlight, wind,and rain, and a geothermalheating/cooling system, forcomfortable, resource and energyefficient living.

SEAS™ processA carrier with outstanding microbeadherability enables the attainment ofa food chain in which bacteria thatpropagate consuming organic matterin wastewater are consumed byprotozoa, which are consumed bymetazoa, which are consumed byworms, the result being extremelylittle excess sludge. The process alsooperates well in a wide range ofloading conditions, and features easymaintenance.

Ecosensor™ recycled polyesterPolyester resin and filamentchemically recycled from PET bottlesand other polyester waste, with thequality and purity of virgin polymer.The exemplary process technologyenables any number of recyclingrepetitions with no loss of quality, andall reaction residue is recycled as fueland cement feedstock so that nowaste requiring disposal is generated.Face fabric containing at least 60%Ecosensor™ is Eco Mark certified, asis other fabric containing at least 50%.

Grease-trap cleaning product seriesGrease traps are installed incommercial kitchens to remove greaseand sediments from wastewater beforeeffluence into sewage systems. AsahiKasei Life & Living produces acomprehensive range of elements,

devices, and sprays to maintain thecleanliness, hygiene, and effectivefunction of grease traps, makingprevention of pollution easy andefficient.

Ecosensor™ resin.

Neoma™ forhome insulation.

SEAS™ facility.

Carrier block used inSEAS™ process.

Grease-trap cleaning products(above); bag, sheet, and scoop ingrease-trap schematic (right).

The Hebel Haus Sorakara™.

Ecoefficient Products and Technologies

Plant for biodiesel process research.

Proton exchange membranes andbinder solution.

31

Dehydrated bacteria fertilizerWastewater from the cultivation andrefining of microbe-derived productscontains organic material which istreated by bacterial digestion. Thebacteria which propagate duringwastewater treatment must then bedisposed of, conventionally by removalthrough filtration and landfilling.Asahi Kasei N&P recycles the bacteriaas fertilizer through dehydration. Infiscal 2004, 60 tons of dehydratedbacteria fertilizer was sold to fertilizercompanies.

PEFC membraneWe are developing proton exchangemembranes (PEMs) for use aselectrolyte in polymer electrolyte fuelcells (PEFCs), an emergingtechnology for mobile powergeneration. Automobiles powered byPEFCs would emit no nitrogen oxidesand sulfur oxides, the principalpollutants from internal combustionengines. The development effort wastransferred to Asahi Kasei Chemicalsin 2005, and is advancing in concertwith a NEDO project.

Apolarm™ MThe Apolarm™ M scans the surfaceof wastewater with a semiconductorlaser to detect floating oil. Becauseoil floats on water and has a muchhigher reflectance, the system is ableto efficiently detect oil leaks evenwith high water flux, waves, and largechanges in water level.

Biodiesel process developmentBiodiesel is an automotive fuelobtained from waste fats and oils.Ecological features of biodiesel includeformation of less sulfur oxides duringcombustion, lower CO2 generation,and waste reduction. In June 2003Asahi Kasei was commissioned by theNew Energy and Industrial TechnologyDevelopment Organization (NEDO) to

research process technology forbiodiesel production, and consignedthe research to Kyoto University,Toyota Tsusho Corp., and groupcompanies Asahi Kasei Engineeringand Asahi Research Center.

While conventional biodieselprocesses can only process a narrowrange of waste fats and oils, the newtwo-stage supercritical methanolprocess which is our focus ofresearch makes it possible toefficiently process a wide variety ofwaste fats and oils. A test plant hasbeen constructed at the Asahi Kaseisite in Fuji, and operating efficiencyis being advanced usingcommercially generated waste fatsand oils.


Fertilizer producedby dehydratingbacteria.

Waste liquid incineratorThe waste liquid incinerator developedby Asahi Kasei Engineering (AEC) isable to safely and efficiently treat highlyconcentrated organic waste liquids andwaste liquids containing inorganic salts,which are ordinarily very difficult totreat. Waste liquid is sprayed into thehigh-temperature oxidizing atmosphereof the combustion chamber where it isinstantly decomposed and oxidized, withonly the complete combustion productsCO2 and H2O released as exhaust.Inorganic salts contained in the wasteliquid are continuously and safelyremoved from the system. The processalso features stable operation with widevariation in waste liquid composition. Itenables large reductions in COD ofeffluent and in the amount of wastetransferred off-site for disposal.

The Apolarm™ M.

Two-stage supercritical methanol process for biodiesel production.

Waste liquid incinerator.

Water MethanolMethanol recovery

Waste fatsand oils

Subcriticalwater reaction

Supercriticalmethanol reaction

Waterphase Wastewater treatment

Glycerin recovery

Oilphase Phase separation

Biodiesel refiningHydrolysis

Phase separation

Esterification

Glycerin

Biodiesel

32

In fiscal 2004 we had two industrialaccidents, a small fire at our naphthacracker in Mizushima and an explosionduring dismantling of the industrialnitrocellulose production facility inNobeoka. The effort to avoid allindustrial accidents continues toadvance centered on identification ofpotential hazards.

Change controlSince fiscal 2002, we have advanced aprogram to systematically ensure thatall operating changes are approved byresponsible parties in the three areas ofoperation, maintenance, and ESH. Thethree parties perform a safety reviewwhenever plant is modified or operatingconditions are changed, and approvemodifications and changes to beimplemented in response to potential

hazards which are identified. Theinvolvement of three parties withseparate perspectives provides a checkagainst bias in the decision-makingprocess. The program also serves toenhance the development of personnelwith superior knowledge andunderstanding of operation,maintenance, and ESH.

Explosion during dismantling of industrial nitrocellulose facility

On January 14, 2005 an explosionoccurred at the industrialnitrocellulose production facility in theTohmi Plant of Asahi Kasei Chemicalsin Nobeoka. The accident occurred asa waste process water pipe was beingcut during dismantling of the disusedfacility. Six persons involved in thedismantling work were injured.

An accident response team wasimmediately formed to lead theinternal investigation into the causeand formulate measures to ensureagainst recurrence. The explosion isbelieved to have happened when

insufficiently wetted nitrocelluloseresidue adhering to the inside of thepipe was initiated by the heatgenerated during cutting. Threemeasures were taken to ensure againstrecurrence:

• Prohibition of cutting when residueis present (complete removal ofnitrocellulose required)

• Watering the saw blade when cutting• Modification of work approval

system, thorough education ofsupervisors and subcontractedpersonnel

Physical Integrityand Safe OperationPhysical Integrityand Safe OperationSummary results

RC objectives

Avoid all industrial accidents.

Control changes to equipment andoperating conditions.

Monitor for items in need ofreplacement/uninspected items,implement remediation.

Advance utilization of preventivemeasures, perform remediationbased on risk assessment.

Fully utilize systematic maintenancesystem for accident prevention.

Establish independent responsibilityfor plant safety and maintenance.

Two industrial accidents occurred.

Establishment of system for three-party approval (operation, maintenance, and ESH) of changes toequipment and operating conditions.

Replacement/inspection backlog from fiscal 2002 cleared.

Preventive measures based on risk assessment implemented. Ongoing advancement to continue.

Systematic maintenance system implemented. Ongoing advancement to continue.

System for independent responsibility for plant safety and maintenance prepared. Disaster response trainingto be premised on more serious situations.

Industrial accidents

Potential hazardsSince fiscal 2001 we have advanced aprogram to identify all cases ofdangerously aged plant and equipment,potential source of fires, explosions, orleaks, and other potential hazards, andimplemented remedial measures.Through fiscal 2004 we haveimplemented 2,600 measures to mitigatehazards related to aged plant, at a cost of¥7.7 billion. The program is ongoing.

33

With a diverse range of operations,the Asahi Kasei Group has plantswith a wide variety of differentcharacteristics. No single approachto safety would be appropriate for allplants. We employ a systematicprocess to tailor the safety effort toeach plant’s specific requirements.This includes determination of a rankof priority for safety measures to beimplemented, identification ofequipment which requires additionalsafety measures, and regular reviewsof the term specified for periodicinspection and of maintenanceprocedures. Each plant thus has anindividually adapted system to ensureits physical integrity and safeoperation.

Physical Integrityand Safe Operation

Safe, stable plant operation

Asahi Kasei Group plant safety management system

Plans/proposals

• New construction

• Expansion

• Modification

Compliance

Case studies

Systematic maintenance

Emergency responsesystem

Emergency response training

Design

Design review

Safety review

Inspection, approval

Construction

Inspection andapproval prior to

trial operation

Operation start-up

Dismantling

• Notification andreporting

• Communication withauthorities and media

• Accident/disastercountermeasures

• Emergency medicine• Emergency plant safety

measures

• Safety technology training system• Asahi Technical Academy• Education and training centers

e.g., Asahi Operation Academy(incl. simulators, mock plants)

• Evacuation and emergency responsedrills

• Equipment specified for added safety

• Internal standards• Law and regulation

• Internal• External

Thirteen systematic maintenance steps for plant safety

1. Setting basic maintenance policy

2. Defining equipment subject to maintenance

3. Comprehensive evaluation of importance, setting ranking standards

4. Evaluation of importance of plant safety, setting ranking standards

5. Ranking plant safety elements by importance

6. Identification of equipment to be specified for added safety

7. Identification of elements of equipment specified for added safety subject tomaintenance

8. Elucidation of necessity for maintenance of each element subject to maintenance

9. Defining maintenance work operations for each element subject to maintenance

10. Designating personnel for maintenance work for each element subject tomaintenance

11. Determining period for maintenance work for each element subject to maintenance

12. Defining maintenance procedure for each element subject to maintenance

13. Preparation of mid-long term maintenance plan for each element subject tomaintenance

Core operating company preparesESH management plan(including examination andapproval by general managers forRC at core operating company andoperating site)

34

A comprehensive set of internalregulations guides the proper responseto any industrial accidents or naturaldisasters which occur. The smoothoperation of the emergency responsesystem ensures that personal safety issecured, that effects of the situationare prevented from spreading tosurrounding areas, and that damage isheld to a minimum, through closecommunication between the plants,regional management, and the headoffice.

Our operations located in industrialpetrochemical districts havecooperative arrangements with nearbypetrochemical manufacturers formutual emergency assistance, and joint

training drills are performed regularly.To ensure against emergency responsedrills becoming routine andpredictable, a wide variety ofemergency situations are contrived foruse as training scenarios. Such drills

confirm the effective operation of thesystems of communication within theplant site and between the site and thehead office, and the ability of on-sitepersonnel to react swiftly with properresponse measures.

Emergency response training at the Mizushima Works.

Pre-investment inspection systemInternal regulations require a pre-investment inspection to verify plantsafety when there are plans to invest innew plant, plant expansion, or plantmodification. Inspection and approvalprior to trial operation provides anadditional confirmation of plant safetybefore commercial operation begins.

For large investments, the holdingcompany performs safety inspectionsin addition to the safety inspectionsperformed by the core operatingcompanies. In fiscal 2004, holdingcompany safety inspections wereperformed for 12 investments.

A five-step safety assessment is

performed as part of the pre-investment inspection. Ranks areassigned based on degree of hazard,and process risk assessment isperformed for low-risk plants whichare deemed to be vital. A finalcomprehensive risk assessment is thenperformed.

Preparation for emergency situations

Preparation of necessary documents and materialsStep 1

Step 3

Step 4

Comprehensive risk assessmentStep 5

Fire and explosion assessment

Vapor cloud explosion assessment

Assessment of unstable substances

Qualitative evaluationStep 2

Simplified process riskassessment (performed asnecessary)

Comprehensive process riskassessment(logically premised problems)

• HAZOP• FMEA• FTA

Simplified process riskassessment(fixed suppositions)

• Asahi problem scenariosystem

• What if

Core operating company plansnew construction or plant expansion

Safety assessmentSystem for inspection prior tocapital investment

Pre-startup examination andapproval by general manager ofCorporate ESH & QA or generalmanager for RC at core operatingcompany

Final examination and approval byexecutive for RC(if large investment)

Groundbreaking

Operation

Quantitative evaluation

Hazard rank 1 Hazard rank 2 Hazard rank 3

35

Safety training and educationA distinguishing feature of our safetytraining program is the Asahi SafetyTraining (AST) curriculum, whichwas developed in-house based onlong-term practical experience. ASTis a fundamental part of safetytraining throughout the Asahi KaseiGroup at every plant and workplace.The key elements of AST are:• Participation and initiative by all

employees as the core of accidentprevention awareness andimplementation.

• Ergonomic approach to identifyingand eliminating sources of potentialmisconceptions, misoperation, andmisjudgment.

• Analysis of past accidents toidentify potential hazards anddevelop preventive measures.

The AST curriculum is used at theAsahi Technical Academy, whereyoung technicians gain a basicknowledge of analysis, patents,computers, and ESH.

Training centers at each main sitelocation provide additional trainingtailored to each rank of personnel,from line operators to supervisors.

At our petrochemical sites inMizushima and Kawasaki, the AsahiOperation Academy (AOA) serves asthe training center to cultivate theskills necessary to operatepetrochemical plants. Miniatureplants and simulators are used atAOA to provide hands-on experience

with controls and instrumentation forthe technical skills and practicalunderstanding of chemicalengineering necessary for safe andreliable plant operation. Training atAOA is made available to personnel ofsmaller companies which do no havetheir own training centers.

Evaporation box ignition experimentat AOA.

Asahi Technical Academy lectures. Dust explosion experiment at AOA.

Experiment for electrical discharge byinherent resistance differential at AOA.

Comments from trainees at explosion and fire prevention course

The three-day course was very easy to understand, beginning withcandle combustion and advancing through combustion ofhazardous materials and explosions due to static electricity, withboth lectures and lab work. One part of the lab work which left aparticular impression was the large size of the explosion from 1 ccof hazardous material. Now that I have been assigned to work at areal chemical plant, I am working with large volumes of manyhazardous chemicals. I am always mindful of the lessons I learnedin the safety training course, and vigilant not to let any accidentoccur.

Tomonori Oe, Chemicals Plant, Nobeoka Works,Asahi Kasei Chemicals

The lecture made me appreciate how even very small mistakes cancombine to result in a serious accident. The lab work let me seewith my own eyes the kind of situations in which flammable fluidsignite, and how this is different depending on the fluid. I also sawhow a seemingly empty vessel may contain residue of flammableliquid, which can explode due to static electricity. Seeing theexplosion caused by static electricity really left an impact on me.

Yuka Hiranuma, Synthetic Rubber Production Dept.,Kawasaki Works, Asahi Kasei Chemicals

The course had a small number of participants, so it was especiallyinteresting and enjoyable. At a real plant the scale of an accidentwould be something else altogether. I will always keep the lessonsI learned with me as I go about my work.

Mio Minakawa, Performance Materials Research &Development Center, Asahi Kasei Chemicals

I had already studied safety engineering at school, but thepractical training course gave me a deeper understanding ofhazards. I really appreciate the importance of each person at theproduction site remaining alert at all times.

Koji Shibata, 1st Monomers Production Dept.,Mizushima Works, Asahi Kasei Chemicals

Physical Integrity and Safe Operation

36

Workplace Safety and HygieneWorkplace Safety and HygieneSummary results

RC objectives

Achieve frequency rate of 0.1 or less.Achieve severity rate of 0.005 or less.

Expand adoption of OHSMS.Enhance utilization of OHSMS whereit is implemented.

Frequency rate of 0.36 and severity rate of 0.011.

Adoption of OHSMS at approximately 90% of production facilities, as planned.

Since 1982, the Asahi Kasei Groupeffort for safety has been guided by aseries of three-year ESH initiatives.The seventh, beginning in fiscal 2001,was renamed the Medium-term RCProgram as part of an enhancementand expansion of the Responsible Careeffort. The second Medium-term RCProgram began in fiscal 2004.

The holding company, each coreoperating company, and eachoperational region has formulated

three-year plans to heighten the effortfor workplace safety and hygiene inorder to achieve the extremelydemanding targets of a frequency ratefor lost-workday injuries of 0.1 or lessand a severity rate for lost-workdayinjuries of 0.005 or less.

As seen in the graphs below, ourrecord for both frequency rate andseverity rate has generally been muchbetter than that of the chemicalindustry. Our frequency rate has

decreased to about one sixth of what itwas in 1970. In 2004 we neverthelessfailed to achieve our targets, as ourfrequency rate was 0.36 and severityrate 0.011. Having missed our targetsfor several years, we are adopting anOccupational Health & SafetyManagement System (OHSMS) in aneffort to obtain better safetyperformance.

Safety performance

Frequency rate Severity rate

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

076 78 80 82 84 86 88 90 92 94 96 98 00 02 04

Fiscal year Fiscal year

Asahi Kasei

Chemical industry, Japan

Manufacturing industries, Japan

0.6

0.5

0.4

0.3

0.2

0.1

07876 80 82 84 86 88 90 92 94 96 98 00 02 04

Asahi Kasei


Manufacturing industries,Japan

Freq

uenc

yra

te

Sev

erity

rate

37

A standardized management systemused to confirm that continuousimprovement is being applied tomeasures to minimize the risks ofworkplace injuries and to prevent theemergence of future risks.

OHSMS

Frequency rate for lost-workday injuries

Number of accidental deaths and injuriesresulting in the loss of one or moreworkdays, per million man-hoursworked.

Severity rate for lost-workday injuries

Lost workdays, severity-weighted,per thousand man-hours worked.

Workplace Safety and Hygiene

OHSMS is being adopted to obtaingreater workplace safety byidentifying potential workplacehazards, evaluating risks, settingpriorities, and systematically andcontinuously making improvementsto procedures and equipment.In fiscal 2002 and 2003, we beganapplying OHSMS at our mainproduction sites in accord withOHSAS 18001 standards. In fiscal2004 we concentrated efforts onheightening the effectiveness ofOHSMS where it is in place.Guidance and training by the headoffice and by outside experts wasprovided to obtain greaterunderstanding of the requirements ofthe OHSMS standard.

We have also found certainproblems recurring in differentplants where the system isintroduced. These includemanagement redundancies betweenthe traditional safety measures andOHSMS, and an inability to completethe PDCA cycle due to the timerequired to perform identification ofpotential workplace hazards.Effectiveness is being raised byincorporating traditional safetymeasures into the new system, andby accelerating the PDCA process forgreater safety. Application is alsobeing expanded to include allremaining plants.

Workplace injuriesSixteen workplace injuries occurred infiscal 2004. As often is the case,the most common type of injury wasbecoming caught in or compressed orcrushed by objects. Because of therisk of serious and lasting injuries fromaccidents of this nature we have made

their reduction a point of focus in oursafety enhancement program.

Because our application of OHSMSis relatively recent, not all potentialhazards have been eliminated.The effort is progressing separately ateach workplace, guided by the

individual characteristics of the hazardspresent. Where risk assessmentsappear to be lacking, we are advancingthe identification of hazards with astructured approach to elucidate theeffects and consequences which wouldresult from given preconditions.

OHSMS

100

80

60

40

20

02001

2

2002

14

2003

76

2004

90

2005

92

Fiscal year

%

Target

OHSMS implementation

Incidence of workplace injury byevent category, fiscal 2004

Incidence of workplace injury byevent category, fiscal 1999–2003

Explosionor rupture

19%Fall on same level

19%

Transportation6%

Caught in orcompressed or

crushed by objects25%

Contact with hazardoussubstance 3%Overexertion

10%

Other13%

Overexertion6%

Contact with high orlow temperature object10%

Contact withhazardous substance6%

Other6%

Fall tolower level

13%

Caught in orcompressed or

crushed by objects25%

Explosionor rupture5%

Fall on same level8%

Fall to lower level8%

Transportation13%

Struck by flyingor falling object

5%

Oita administrative area OHSMS secretariatHaving a certified environmental management system since 1998 and completing therenewal of certification after three years, I came to appreciate the effectiveness of suchstandardized management systems, and thought it would be valuable for workplace safetyand health as well. At the same time, I realized the necessary risk assessments would entaila great deal of effort.

We started preparing for OHSMS at our five plants in April 2002, with implementationbeginning in April 2003. Preparation at the rest of our workplaces began in May 2003, withimplementation beginning in fiscal 2004.

With a large number of personnel taking part in risk identification and assessment, wewere able to implement measures to mitigate a large number of workplace hazards. Anaccident nevertheless occurred at one of the plants where OHSMS was implemented, so we cannot declare with certainty that our riskassessments have accounted for every possible eventuality. We will continue to enhance our risk assessments to ensure against therecurrence of workplace injuries.

Masahiro TakayamaSafety & Environment Dept.Pharmaceuticals Production & Technology CenterAsahi Kasei Pharma

38

Plant OHSMS leader

When we began preparing for OHSMS in fiscal 2002, it took some time to get a good

understanding of the system, and we were still finding our way when we began our initial

risk assessments. The occurrence of an accident in the first half of fiscal 2003 exposed the

inadequacy of the risk assessments. We knew we had to refound the system based on a

deeper understanding and a renewed mindset in order to obtain the results we sought.

OHSMS study groups were held for core personnel, action teams and organizations were

clarified, and all personnel participated in an exercise to identify risks by thinking through

the consequences which would result from given preconditions based on operating manual

procedures. A monthly conference of the leaders of each action team was instituted to

follow up and share know-how across the organization.

We believe the effective utilization of this system is serving to establish a structure for safety, where knowledge and awareness of

risks is shared openly and safety measures are implemented reliably.

Kenji ShiotaKamishima Pharmaceuticals PlantPharmaceuticals Production & Technology CenterAsahi Kasei Pharma

The average frequency rate for lost-workday injuries from fiscal 1999 to2001 at operations in our Ohitoadministrative area was 0.41, overtwice that for the Asahi Kasei Groupoverall, including a serious andlasting injury. Improvement inworkplace safety and hygieneperformance in the Ohitoadministrative area was thereforemarked as a priority, and the area wasone of our first to begin implementingOHSMS.

In fiscal 2002 preparations forOHSMS were made at fiveworkplaces in Ohito, withimplementation beginning in fiscal2003. Preparations at the remainder

of workplaces in the administrativearea were made in fiscal 2003, withOHSMS implementation beginning infiscal 2004.

In its first year of implementation,an injury occurred at the KamishimaPharmaceuticals Plant. Analysis ofthe accident revealed that somehazards had been overlooked in therisk assessment which had beenperformed. To ensure theidentification of all hazards, riskassessments were repeatedthroughout the administrative areausing a structured approach toelucidate the effects andconsequences which would resultfrom given preconditions.

No workplace injuries occurred infiscal 2004, and we believe thatfurther safety advances through theOHSMS program will enable thisperformance to be maintained.

99 00 01 02 03 04

1.4

1.2

1

0.8

0.6

0.4

0.2

0

Frequency rate for lost-workday injuries,Ohito administrative area

Before OHSMSOHSMS inOhito only

OHSMS in wholeadministrative area

Fiscal year


Solid results from OHSMS in Ohito administrative area

39

Uniform safety standards are appliedto similar operating proceduresthroughout the Asahi Kasei Group.These standards clearly and conciselyindicate our basic inviolable safetyprinciples (excerpts below), andspecific safe operation regulationsderived from these standards areestablished at each workplace asappropriate.

As shown at right, most of theworkplace injuries which haveoccurred were the result ofnoncompliance with workplace safetyregulations. While we areimplementing OHSMS to secure

greater workplace safety, maintainingstrict compliance with safetyregulations is a key focus of oureffort to prevent workplace injuries.Awareness of safe operationregulations at each workplace hasbeen raised, and training has beenperformed to ensure thoroughunderstanding of the relationshipbetween noncompliance and the riskof accidents. Systems to confirmcompliance are applied, with themethod and frequency of self-checking and follow-up bysupervisors adapted to thecharacteristics of each workplace.

Compliance with safe operating standardsProportion of workplace injuriesresulting from noncompliance withsafety regulations

Workplace Safety and Hygiene

Each autumn we hold a group-wideWorkplace Hygiene Week, duringwhich workplace environments arereviewed and plans for improvementare prepared. Workplaces wherepotential health hazards are presentare subject to regular monitoring inaccordance with the WorkingEnvironment Measurement Law.

All workplaces throughout the AsahiKasei Group where organic chemicals,controlled substances, or dust ispresent are maintained at CategoryI, indicating acceptable results from airquality monitoring.

Where radioisotopes are present,radiation dose rates are maintainedbelow regulatory limits, withmeasurement results reported eachyear to Japan’s Office for RadiationRegulations.

Noise level measurements at someworkplaces have resulted in CategoryIII classification, requiring mitigation.Having determined that it would beimpractical to significantly reduce thenoise level at these workplaces withoutextensive modification and relocationof equipment, we rely on earplug useto protect against auditory damage.

A record of noise exposure data foreach individual is maintained to enableexposure to be managed andminimized. Studies of the feasibility oftechnological measures to reducenoise generation are ongoing.

Some workplaces near high-temperature equipment areuncomfortably hot if personnel arerequired to be present for extendedperiods, especially for unscheduledmaintenance. We are advancing plantmodifications for reduced heatemission and greater operationalreliability to minimize such discomfort.

Maintaining workplace hygiene

100

90

80

70

60

50

40

30

20

10

02001

63

2002

86

2003

88

2004

93

Fiscal year

%

Prevention of becoming caught in or compressed or crushed by machinery

Even if the power is off, confirm that there is no inertial rotation before beginning procedure.

Prevention of becoming crushed by heavy objects

Keep away from the area beneath the path of objects suspended by crane and where they could fall or swing.

Prevention of chemical poisoning and burns

Do not perform operations on chemical pumping or venting systems without protective gear.

Prevention of falling to a lower level

Securely fasten safety line when performing operations in high places.

Prevention of lumbago and tendon rupture due to overexertion

Do not exert strength in an awkward posture when using tools.

Prevention of injuries from forklifts

Do not enter into or encroach upon the area where forklifts travel.

Prevention of explosions and fires

Do not extract samples from or infuse feed into openings without first eliminating any static electrical charge.

Prevention of cuts

Do not assemble or disassemble glass apparatus without protective gloves.

Prevention of injury from objects falling down or falling over

Do not place objects in an unstable condition.

Prevention of injury from collapsing mounds

Do not encroach upon surfaces of mounds of granular matter which are at risk of collapsing.

Prevention of electrical shock

Do not perform operations near charge-carrying components which are exposed.

Prevention of oxygen deficiency

Do not enter or peer into towers, pipes, or pits without oxygen safety measures.

Excerpted safety standards

40

Health maintenanceHealth maintenanceSummary results

RC objectives

Systematize and unify base for healthsupport.

Reduce proportion of employeesreceiving health cautions.

Promote emotional health and care.

Health support systems established at regional offices and geographically separated plants.

Slight increase in proportion of employees receiving health cautions.

Ability to respond appropriately to emotional health issues evaluated. Support provided to geographicallyseparated plants.

Since fiscal 2002 we haveimplemented a range of employeehealth maintenance and promotionmeasures as part of the group-wide

Responsible Care program to achievetargets set forth in our HealthPromotion Policy. In fiscal 2004,health maintenance capabilities were

enhanced at geographicallyindependent plants and offices whichto not have specialist industrialmedical staff stationed on site.

Health maintenance support system

All personnel have annual healthcheckups including consultation withindustrial physicians. A set of eightcheckup results (below) are used asindicators of possible lifestyle-relatedheath problems, and personnel

whose results exceed standard limitsare given a health caution and advicefrom a physician.

About half of our personnel receiveone or more health cautions based onthese indicators, roughly the same

proportion as in Japan’s workforceoverall. To help reduce theproportion of employees receivinghealth cautions, we are expanding theuse of an Internet-based personal dietmanagement system.

Reducing health cautions

Indicator Standard for caution

Blood pressure Systolic

Diastolic

Total cholesterol (TCHO)

Neutral fats (TG)

Fasting blood sugar (FBS)

HbA1c

γ-GTP

Uric acid (UA)

BMI

140 mmHg

90 mmHg

240 mg/dl

180 mg/dl

110 mg/dl

5.9 %

80 IU/l

7.0 mg/dl

25

41

Our plant is now in its third year as a “model workplace” for emotional health and care,with the support and guidance of outside specialists. Our program for “A Bright andHealthy Workplace” includes the preparation of consultation systems, education ofsupervisors, plant-wide recreation events, and initiatives to facilitate greatercommunication.

Counseling is held not only for those who request it but also for personnel selected atrandom. In addition to helping to reduce reluctance to seek counseling, this gives theoverall workforce a general idea about the nature of counseling. Four times per year,supervisors have training sessions and consultation with leaders of the emotional healthpromotion program. This has served to deepen the understanding of emotional issuesamong supervisory personnel.

In November 2004 representatives of our plant made a presentation about our emotional care program at an industrial health forumheld by the Oita Occupational Health Promotion Center. Attendees, numbering some 200, included physicians, health managers, andother health maintenance staff from companies throughout the Oita area. Enhancement of emotional support for employees is anemerging issue in Oita, and many attendees commented that our presentation served as a valuable reference.

Creating a healthy atmosphere in the workplace is a long-term prospect, requiring the flexibility to try a variety of differentmeasures, moving step by step in a positive direction.

Junji YamaguchiEnvironment & Safety Dept.Oita PlantAsahi Kasei Chemicals

I’ve seen a lot of improvements with the issues and problems we encounter with ouremotional health support program. People have become more supportive andunderstanding, and the workplace environment seems more sunny and lively. We’ll keepon making steady progress as part of the effort for health promotion.

Mihoko UkeguchiRegistered Nurse, Industrial CounselorOita Plant Health Maintenance CenterAsahi Kasei Chemicals

Health maintenance

The maintenance of employees’emotional health and care isadvanced in tandem with our physicalhealth and fitness programs.The corporate Emotional HealthGuideline provides for measures toimprove the workplace environmenttogether with four complementaryapproaches to care: By the individualemployee, by line of authority, byindustrial medical staff, and byspecialists.

To promote self-awareness andcare, we began implementing theJapan Mental Health Inventory (JMI)survey in fiscal 1993. In fiscal 2001we began expanding coverageinclude to all personnel, withcompletion in fiscal 2004. The surveywill be repeated for all personnel on arolling three-year cycle. The JMI

survey was developed by the MentalHealth Research Institute of theJapan Productivity Center for Socio-Economic Development, a non-profitorganization advocating advancedindustrial productivity. Forsupervisory and managerialpersonnel, an additional survey onworkplace conditions is conducted tohelp guide improvements to theworkplace environment.

The four approaches to care aresummarized as follows:• Self-care by individual employee

Prevention and alleviation of one’sown stress

• Care by line of authorityConsultation of the employee withthe supervisor, improvement of theworkplace environment

• Care by industrial medical staf fConsultation with the individual orsupervisor, support forimprovement of the workplaceenvironment

• Care by specialistsCare by specialist institutions andspecialist physicians

The Oita Plant of Asahi KaseiChemicals has been selected by theJapan Industrial Safety and HealthAssociation as a model workplace forimplementation of the fourapproaches in fiscal 2003 and again infiscal 2004, demonstrating thebeneficial results for emotional healthand care of employees.

Emotional health and care


2002

Parental leaveShortened working days for child-rearing

2003 2004

41

121

71

119

121

111

Utilization of provisions for child-rearing

0

50

100

150

200

250

Em

ploy

ees

Fiscalyear

42

The Asahi Kasei Group encouragespersonnel to take advantage of a fullcomplement of provisions andbenefits to enable the flexibility tomaintain a career while raising afamily or attending to familymembers who require care. Theseare among the most advanced inJapan, including short-term andextended leaves of absence, paid daysoff, and shortened working days.Financial assistance for hiring help athome, such as babysitting and homeconvalescent care, is available fromthe employees’ mutual benefitscooperative.

Parental leave and shortenedworking days for child-rearingParental leave is available until thechild is three years old. Ninety-fivepercent of employees who take paiddays off for childbirth also utilize thisprovision, and each year we havesome 100 employees on parentalleave.

The working day may beshortened by up to two hours untilthe child enters elementary school.In fiscal 2004, 121 employees utilizedthis provision, which may be usedconcurrently with “flex-time” forflexible working hours and with“child-rearing time” for temporaryabsence during the working day tospend time with a child under the ageof one year.

The utilization of these provisionshas grown to become quite broad, asshown in the graph below.

Financial assistance for home careThe Asahi Kasei Group employees’mutual benefits cooperative will pay upto half of the cost of hiring help suchas babysitters or home care workers

for convalescence of family members.The cooperative has concluded group-discount agreements with several careservice providers.

Support system for the employees’work and life balanceIn fiscal 2003 helplines were establishedto promote utilization of the provisionsand benefits available for employees tomore easily maintain a career whilecaring for the family. Descriptions of thevarious provisions and guidelines fortheir use are made easily accessible onthe corporate intranet, along with FAQs.EO Promotion provides personalizedconsultation on how best to utilize theavailable provisions in individualcircumstances. In fiscal 2004 adedicated helpline for male employeeswas established.

A wide range of measures areemployed to ensure equal opportunityin the Asahi Kasei Group, coordinatedby EO Promotion. The number offemale employees rising to positions ofresponsibility has steadily grown as a

result of an increased proportion offemale hires and a wider distribution ofjob assignments for female personnel.As of June 2004, 142 female personnelwere working as managers.Assignment of female personnel

throughout the variety of posts inmarketing, research, development,production, and administration hasbecome commonplace.

Subsidiary Asahi Kasei Ability Co., Ltd.was established in 1985 for theemployment of disabled persons,performing a wide range of services forthe Asahi Kasei Group includingwebsite design, document printing andbinding, copying, mounting andframing, gardening, and cleaning, withoffices in Tokyo, Fuji, Mizushima, andNobeoka. Employing 130 in fiscal 2004,

Asahi Kasei Ability also performswork for companies and individualsoutside the Asahi Kasei Group.

Employment of disabled persons inthe Asahi Kasei Group has exceed thelegal minimum since 1994, andamounted to 1.82% of employees infiscal 2004.

Equal opportunity

Balancing career and family life

Employment of persons with disability

Employee FulfillmentEmployee FulfillmentThe Asahi Kasei Group considers fulfilling and satisfying working conditions and workplaceculture, in which personnel feel motivated to achieve and take pride in their career, to be akey to business performance. Our success in this regard is evidenced by one of the lowestemployee turnover rates in Japan for an enterprise this large.

The Asahi Kasei Group considers fulfilling and satisfying working conditions and workplaceculture, in which personnel feel motivated to achieve and take pride in their career, to be akey to business performance. Our success in this regard is evidenced by one of the lowestemployee turnover rates in Japan for an enterprise this large.

Working at Asahi Kasei Ability.

Employee’s commentAt first I was uneasy about raising a child whileworking in overseas marketing.I knew about the provisions for child-rearing, but Iwasn’t sure if I would be able to utilize them. Butwith the support of HR and my department, I was ableto utilize the provisions smoothly. I am very pleasedthat these provisions enable me to flexibly manage mytime to maintain my career while child-rearing.

Liu XiFunctional Film Products Sales Dept.Packaging Products Div.Asahi Kasei Life & Living

43

EO Promotion

EO (Equal Opportunity) Promotion is thesection of Corporate Personnel & LaborRelations tasked with ensuring againstunreasonable discrimination, on the basis ofgender or otherwise, and coordinating theprovision of support for employees tobalance work and family life, to maintain a

workplace culture in which employeefulfillment and working performance arefree from hindrance. The Asahi KaseiGroup’s efforts for equal opportunity from1993 through 8 years were recognized withan Award for Excellence from the Ministerof Health, Labor, and Welfare in 2001.

Independent study supportguidebook.

Employee FulfillmentThe Asahi Kasei Group considers fulfilling and satisfying working conditions and workplaceculture, in which personnel feel motivated to achieve and take pride in their career, to be akey to business performance. Our success in this regard is evidenced by one of the lowestemployee turnover rates in Japan for an enterprise this large.

An Action Plan for the Asahi KaseiGroup in accordance with the NextGeneration Education and SupportPromotion Act was prepared in March2005. The plan provides for thefollowing measures to be implementedfor the next two years.• Development of a workplace

environment in which both men and

women can continue working whileraising a family, and promotion ofutilization of provisions to this end.Encouragement of men to take partin child-rearing.

• Promotion of use of paid days off,working with labor unions to reviewworking practices at workplaceswith a large amount of overtime,

and advancement of reform ofworking practices.

• Working with local communities toadvance community outreachmeasures for education of the nextgeneration.

Sexual harassment in the Asahi KaseiGroup is clearly prohibited by ourCorporate Ethics – Code of Conduct andby our corporate employmentregulations. Prevention is reinforcedthrough training at each level ofpromotion in rank and through periodiccompany-wide training within each coreoperating company for conformancewith corporate ethics.

EO Promotion serves as a centralpoint of consultation for the Asahi KaseiGroup, and consultation centers havebeen established in each core operatingcompany, at each operating site, and byeach labor union. Training andconsultation is not limited to regularfull-time employees, but includes stafffrom placement agencies andemployees of affiliated companies.

Next Generation Nurturing Support Measures Promotion Law

Preventing sexual harassment

Accord with labor unionsDiscussions between management andlabor union representatives are held ona regular basis to ensure that aconstructive partnership and mutualunderstanding is maintained. Eachyear, union representatives meet withthe Asahi Kasei Chairman andPresident. In May 2005, discussionsincluded management plans,operational safety, and workplacehygiene and health. Discussions

related to RC measures are alsoregularly held among the labor unions,

Corporate Personnel & LaborRelations, and Corporate ESH & QA.

Career development supportEmployees are given a wide range oftraining to develop the skills needed tosuccessfully advance their careers. Aregular program of training is appliedthroughout the Asahi Kasei Group atkey career steps – upon hiring,promotion to manager, promotion todepartment general manager,promotion to division general manager,and assumption of an executiveposition. Other individual trainingprograms such as for globalmanagement are implementedaccording to business need. Each coreoperating company also implementstraining programs to support thedevelopment of employee skillsrequired for its specific field ofbusiness.

Independent studyIn October 2003, the Asahi Kasei Groupinstituted a program to supportindependent study by employees. Toencourage employees to acquire highlevel specialist or technological ability,the company will pay part of the cost ofattending courses or lectures.

Supporting independent study in thesubject field of choice is part of abroader effort to develop a corporateculture in which self-motivatedemployees pursue career advancementin accordance with their own individualinterests and abilities, in the convictionthat corporate success ultimately restson an ambitious, dynamic, self-drivenworkforce.

Intranet support for careerdevelopmentThe corporate intranet is utilized as atool to support the development of

employee skills. Information onavailable training courses and seminarsis posted, and e-learning courses aremade available for employees to pursueon their own initiative, including acourse on intellectual property.

The corporate intranet is also used toenable employees to record theirspecialist abilities, certifiedqualifications, working experience, andcareer ambitions. The recordedinformation is utilized in the evaluationof candidates for assignment transfers,and to provide newly transferredsupervisors with a concise overview oftheir subordinates.

Corporate policy and guide forprevention of sexual harassment.

Intranet career development site.

44

Product SafetyProduct Safety

Consumer satisfactionProducts sold by the Asahi KaseiGroup range from materials toconsumer products. Many of thematerials we sell are used in productswhich are ultimately purchased byordinary consumers. Consumersatisfaction is therefore the ultimatemeasure of our success in theprovision of safe, high-qualityproducts.

Product liabilitySecurement of product safety becamean important imperative with the 1995initiation of Japan’s Products LiabilityLaw. To avoid liability, any productdefects must be discovered before theproduct reaches the customer.Product quality and safety areensured through constant attention toproduction control.

Product safety guidelinesGroup-wide product safety guidelineshave been prepared to secure productsafety and prevent the occurrence ofproduct safety incidents. Theguidelines specify matters to becontrolled throughout the processfrom material purchase through useand disposal. Product safety measuresfor individual products are performedby each core operating company inaccordance the guidelines.

Product safety measuresAs shown at right, the flow ofmeasures to secure product safety iscentered on risk assessments duringthe development stage, prior toproduct marketing. Separateprocedures are followed for chemicalsand equipment. Material safety datasheets (MSDSs) are prepared toensure the safe handling of chemicalproducts sold to other businesses.Instructions for safe use are includedin the product manuals of equipmentsold to other businesses and ofconsumer products.

Product safety resultsAvoidance of serious product safetyincidents was specified as an RCObjective for fiscal 2004, and noserious product safety incidentsoccurred. We believe this result isattributable to the day-to-day productsafety measures such as riskassessments, and to the ongoingeducation and training for productsafety to maintain knowledge of issuesrelated to product liability, safehandling of chemical substances, andsafety of equipment sold as products.

In addition to useful characteristics,products also have hazards whichcould result in injury as a result ofimproper handling. While a variety ofinformation is provided to customersto ensure safe and proper handlingand use, this information is not alwaysutilized completely. The informationwe provide is being revised forgreater ease of understanding andease of use.

Avoid serious productsafety incidents.

RC objectives

Summary results

No serious product safety incidents.

45

Product Safety

Evaluation of safety and risks

Proposal

Flow of product safety measures

Product safety procedure for chemicals Product safety procedure for equipment

Pre market-evaluationstudy

Elimination and reduction ofrisks

Preparation of documentation

Identification of conditions forproduction and distribution

Product planning

Determination of the limits

Hazard identification

Risk estimation

Risk evaluation

No

Yes

No

Yes

Developthe product?

Is riskmanageable?

Is safetysecured?

Elimination and reduction of risks

Yes

NoConformance with regulations and standards

Conditions for productionand distribution

Preparation ofdocumentation

Risk evaluation

Identification of risks for usersand risk reduction measures

Evaluation of safety and risks

Pre-marketing study

Elimination and reduction of risks

Understanding of productionand disposal processes

Preparation of documentation

Confirmation and revision ofconditions for production anddistribution

Post-marketing study

Product supply phaseProduct development phase

Understanding of productionand disposal processes

Revision of documentation

Application of conditions forproduction and distribution

Identification of risks for usersand risk reduction measures

Risk assessment

Completion

Pre

mar

ket-e

valu

atio

nsa

fety

revi

ew

Pre

-mar

ketin

gsa

fety

revi

ew

Preparation ofmeasures tosecure productsafety, settingschedule

• Conditions forproduction anddistribution

• Identification of mattersto be communicated tousers

Designation of applicationsand destinations

Researching regulationsand standards

Researching hazards

Understanding exposureconditions

Acquisition ofrequired data

Designation of applications anddestinations

Researching regulations andstandards

Product design(assembly of prototype)

46

Managing chemical substancesManaging chemical substances

Chemical substances are managed at each stage from development to use and disposal, as shown below.

Materials purchase

When purchasing materials,information related to the safety ofchemical substances is receivedfrom the supplier. This informationserves as a guide to safe storage andhandling. Please refer to p. 27 forinformation related to greenprocurement.

Production

The safety of the local community andthe protection of the environment aresecured by proper handling ofchemical substances to suppressenvironmental release (see pp. 20–28)and to prevent fires, explosions, andleaks (see pp. 32–35). The health ofemployees is protected by preventingworkplace exposure to hazardoussubstances (see pp. 36–39).

Use and disposal

Guidance for proper use anddisposal of chemical substances andchemical products is provided inMSDSs, technical bulletins, andproduct brochures. TransportEmergency Cards are provided toguide proper environmental andsafety response in the event of anaccident during physicaldistribution.

Chemical substance management flow

Supplier

Society

Asahi Kasei Group

Procurement

Receipt of MSDSsfor materials

Greenprocurement

Product safetyDistribution of MSDSs forproducts

Physical distribution safetyProvision of Transport Emergency Cards

Environmental protectionReduction of environmental burden

Physical integrity and safe operationPrevention of fires and explosions

Workplace safety and hygienePrevention of workplace injuries

Sale

Customer

Use DisposalProduction

R&D

Supply Material Product

47

Managing chemical substances


Management of chemical substancesbegins with R&D. Development ofboth products and productionprocesses is guided by the principlesof “green and sustainablechemistry.”

• It is better to prevent waste than to treat or clean up waste after it is formed.

• Synthetic methods should be designed to maximize the incorporation of all materials used in the process into the final

product.

• Wherever practicable, synthetic methodologies should be designed to use and generate substances that possess little or

no toxicity to human health and the environment.

• Chemical products should be designed to preserve efficacy of function while reducing toxicity.

• The use of auxiliary substances (solvents, separation agents, etc.) should be made unnecessary whenever possible and

innocuous when used.

• Energy requirements should be recognized for their environmental and economic impacts and should be minimized.

Synthetic methods should be conducted at ambient temperature and pressure.

• A raw material or feedstock should be renewable rather than depleting whenever technically and economically practicable.

• Unnecessary derivatization (blocking group, protection/deprotection, temporary modification of physical/chemical

processes) should be avoided whenever possible.

• Catalytic reagents (as selective as possible) are superior to stoichiometric reagents.

• Chemical products should be designed so that at the end of their function they do not persist in the environment, and

break down into innocuous degradation products.

• Analytical methodologies need to be further developed to allow for real-time, in-process monitoring and control prior to the

formation of hazardous substances.

• Substances and the form of a substance used in a chemical process should be chosen so as to minimize the potential for

chemical accidents, including releases, explosions, and fires.

The twelve principles of green chemistry

From Paul T. Anstas and John C. Warner, Green Chemistry: Theory and Practice, New York: Oxford University Press, 1998.

Through our membership in theJapan Chemical Industry Association(JCIA), the Asahi Kasei Group is anactive participant in internationalresearch efforts to advance the safemanagement of chemical substancesled by the International Council ofChemical Associations (ICCA).

High Production Volume (HPV)Chemical Initiative

In 1998 the ICCA determined tobring the efforts and resources ofthe world chemical industry to bearin advancing the HPV Initiative inconcert with the Organization forEconomic Cooperation &Development (OECD). The ICCAdesignated as a target thecompletion by 2004 of evaluation ofthe approximately 1,000 substancesproduced in volumes of 1,000 tons/year

or more in two or more of the majoreconomies of Japan, the US, and theEU. Although the target was notreached, the OECD was more thansatisfied with the progress achievedthrough the efforts of the ICCA, andwork continues to advance towardcompletion in a few years time.

The Asahi Kasei Group beganparticipation in the ICCA HPVInitiative in fiscal 1999, cosponsoringresearch for ten of the thirtychemical substances we producewhich are among the 1,000 subject toHPV criteria. Evaluation of four ofthe ten substances has beencompleted by the OECD, and is inprogress for the other six incoordination with other participatingcompanies. Evaluation of two of thesix is near completion.

Long-range Research Initiative (LRI)

The ICCA is advancing study on thelong-term effects of chemicalsubstances on health and theenvironment through the LRI. TheJCIA is advancing research in fourfields: Endocrine disruption,chemical carcinogenesis,hypersensitivity, and neurotoxicity.

The Asahi Kasei Group isrepresented on the Planning andManagement Panels for endocrinedisruption and neurotoxicity,participating in the preparation ofresearch white papers, examination ofproposed research projects, andfollow-up of research that has beenadopted.

Green and sustainable chemistry

“Green and sustainable chemistry” (GSC)means chemical technology to enablesustainable development throughtechnological innovation in product design,feedstock selection, production process,

mode of use, and recyclability to alleviateeffects on health, safety, and theenvironment and to achieve conservation ofresources and energy.

International efforts for chemical safety

48

Community OutreachCommunity Outreach

Customer feedback

Public dialog

Customer satisfaction is a primaryobjective throughout all segments ofoperation. In business-to-businessdealings, feedback is obtainedthrough the direct interactionbetween the customer and our salespersonnel. In end-use productsegments, feedback is obtainedthrough consumer consultationcenters in Asahi Kasei Life & Living,Asahi Kasei Homes, and Asahi KaseiPharma, and through consumercontact personnel in the holdingcompany.

The General Affairs Dept. at each ofthe main operating sites of the AsahiKasei Group serves as the contactwith the surrounding community.At some sites, informal get-togethersare regularly held with the public toprovide a forum for dialog. In fiscal2004, three complaints about airquality, three about water qualityseven about noise, and two othercomplaints were received. In each

case, the complaint was promptlyaddressed, with modification of plantand equipment where appropriate.

Local Responsible Care Reports areproduced describing local ESH effortsand providing information for thelocal communities. Reports for fiscal2004 were produced at Nobeoka,Mizushima, Moriyama, Fuji, Ohito,Kawasaki, Suzuka, and at constructionmaterials plant sites.

Feedback from our customersprovides valuable advice on ourproducts. We handle allinquiries with sincerity, and passall feedback on to the presidentand all general managers, and toproduction and R&D personnelas appropriate. Such feedbackhas led to many productimprovements.

Akemi YoshizawaConsumer Consultation CenterAsahi Home Products Co., Ltd.

Local Responsible Care Reports.

49

Community Outreach

Community fellowshipKawasakiAs a corporate member of KawasakiCity’s Chemical Substance StudyCommittee, our Kawasaki Worksheld a plant tour in January 2004 forrepresentatives of resident’sassociations and the citygovernment.

Events and activities

MoriyamaTwice a year our operations inMoriyama hold fellowship meetingswith local resident’s associations,with discussion and exchange ofviews on environmental and safetymeasures.

JRCC community meetingsAsahi Kasei participates incommunity meetings held by theJRCC. In February 2005, acommunity meeting was held inChiba, with representatives of ourChiba Plant taking part.

Kawasaki Works plant tour. Community fellowship meeting in Moriyama.

Maintaining neighborhoodcleanlinessEmployees at many sites periodicallyclear the plant vicinities of litter,rubbish, and weeds. Asahi Kasei Life& Living held an “Eco-CleanupCampaign” in June and December atits Suzuka and Nobeoka plants, Tokyoand Osaka offices, and the Ageo, Ono,and Gunma plants of subsidiary AsahiKasei Pax. This is a volunteer eventfor employees, their families, and thepublic to plant flowerbeds and removetrash and litter in the nearbycommunity areas.

“Eco-Cleanup Campaign” in Tokyo.

Gardening on factory groundsAsahi Kasei Life & Living uses spacein the grounds of its factories forgardening. The effort to achieveaesthetic harmony with thesurroundings through flowers andgreenery is called the “Laurel Project”with the laurel tree held as the symbolof a healthy environment. The areaaround the main gate of the SuzukaPlant has been transformed into agarden pathway which is open to thepublic. At night, the area isilluminated with solar- and wind-powered lighting.

Area environmental councilsEach year, representatives of manyAsahi Kasei plants and Regions playan active role as members of variousenvironmental councils organized byprefectural, city, town, and villagegovernments, participating in the

planning and administration of avariety of functions and monthlyevents. Our operations in Moriyamahad a panel display about “zeroemissions” at an environmentalsymposium held by Moriyama City.

The Suzuka Plant garden pathway.

JRCC community meeting in Chiba.

Eco-Products 2004Asahi Kasei Fibers and Asahi Kasei Life& Living held an exhibit at “Eco-Products2004,” Japan’s largest exhibition ofenvironmentally friendly products andservices. The Asahi Kasei Fibers exhibitfeatured Bemberg™ cupro andEcosensor™ chemically recycledpolyester. The Bemberg™ displayhighlighted its 73-year heritage as aforerunner among ecological textilefilaments, being made by regeneration ofcellulose from cotton linter. TheEcosensor™ display described itsproduction process by molecular-levelrecycling of polyester, the advantagesthis has over material recycling, and thewide range of applications whereEcosensor™ is used.

Asahi Kasei Fibers exhibit atEco-Products 2004.

50

Geese coming to roost at Izu-numa.

Corporate CitizenshipCorporate Citizenship

Sponsorship of Children’s Environmental SymposiumThe fifth Children’s EnvironmentalSymposium was held on January22–23, 2005 at Izu-numa in MiyagiPrefecture, with the Asahi KaseiGroup as a co-sponsor. This was thesecond consecutive year thesymposium was held at Izu-numa,focused on the rich environment innature and the rice paddies of areaswhere migratory birds land, and thesymbiotic relationship betweenpeople and nature. Some 40participants took part in a two-day“eco tour” of the area, includingelementary students and teachersfrom various locations throughoutJapan, local farmers, college student

volunteers, and migratory birdspecialists including MasayukiKurechi, chairman of the JapanAssociation for Wild GeeseProtection (JAWGP). Izu-numa, a sitedesignated by the RamsarConvention on Wetlands, is oneJapan’s few wetland areas, with manylarge rice paddies.

The two-day program emphasizedfirst-hand experience in the naturalenvironment of Miyagi, with ricepaddies, marshland, and migratorybirds, enabling participants to gain asense of the value of living insymbiosis with the naturalenvironment. Children from nearby

in Miyagi commented that they hadnot previously known about howwhite-fronted geese land. Childrenfrom Tokyo commented on thebeauty of the scenery with marshes,geese, and rice paddies, and that theywould like to help keep water cleanby wiping oil out of pans beforewashing them.

Children’s Environmental Symposium

Since fiscal 2000, the NPO Global SchoolProject has held Children’sEnvironmental Symposiums each year,supported by governmental bodies,other NPOs, corporate sponsors, andvolunteers.

Observing the natural ecosystemof white-fronted geese.

Learning to distinguish betweenindividual whistling swans.

Examining plants and animals ina rice paddy flooded throughoutthe winter.

Finding feathers.

51

Corporate Citizenship

Since 1999 Asahi Kasei has sentengineers from operations inNobeoka to area middle schools toperform lectures anddemonstrations on leading-edgetechnology, the associated science,and practical application in industrialproduction. The initiative beinghighly appreciated by students andschools alike, it has grown to involveother area companies and to includeclass field trips to plants. In 2004,engineers visited 15 middle schools

in Nobeoka and Kitaura, 10 of themfrom the Asahi Kasei Group.

Students have commented thatthey were able to see how the thingsthey learned in science class areactually used, and that it made themfeel proud to find out that manytechnologies used in everyday lifeoriginated in Nobeoka. Teachershave commented that theyappreciate the opportunity to exposestudents to real examples of sciencein action, and that it has resulted in

greater interest in science amongstudents.

School visits and plant field trips

Asahi Kasei’s history, technology,operations, and RC initiative areprofiled at its Nobeoka ExhibitionHall. Many local residents,elementary and middle schoolstudents, and other groups andorganizations visit the exhibit halland take an attendant tour of theBemberg Plant.

As a limited-time exhibit, Wild &Wonderful Fibers was on display inearly 2005, spotlighting the rolehigh-tech fibers play in spaceexploration, medical therapy, sports,biotech, recycling, and theenvironment.

An adjoining “science workshop” isused to demonstrate a wide range ofscientific and technological principles.Volunteer alumni of Asahi Kasei leadthe demonstrations, which providevisitors with a hands-on experience

and appreciation for the wonders ofscience. The demonstration onexhibit is periodically changed.Corresponding to Wild & WonderfulFibers, the recycling of PET bottles topolyester fiber was demonstrated.

Exhibition hall and plant tours

ShinAsahi-cho in Shiga prefecturewas the site of “Ban Landmines!International Children's Conference2004,” with the Explosives Divisionof Asahi Kasei Chemicals as asponsor. Activities for participantsincluded a tour of our explosion-proof dome in nearby Aibano, Shiga,where destruction of antipersonnelland mines was performed oncommission from the government ofJapan. Destruction of all of Japan’santipersonnel land mines wascompleted in February 2003.

Conference participants included two-hundred children, some of them landmine victims, from Afghanistan,

Angola, Cambodia, Canada, Djibouti,France, Laos, Nepal, Rwanda, andUganda, as well as Japan.

Sponsorship of Children’s Conference

Since January 2004, the Asahi KaseiLabor Union has performed tree-planting in Hurricane Station,Queensland, Australia. Threeplantings were held in fiscal 2004, inMay and September 2004 and inJanuary 2005. A total of 26 persons

took part, planting some 900eucalyptus saplings in a one hectarearea. The program has served toheighten environmental awarenessamong union members while makinga practical contribution to the globalenvironment.

Tree-planting in Australia

Class field trip to the Tohmi Plant inNobeoka.

The science workshop. The exhibition hall.

Tree-planting volunteers and their hosts.

Conference participants at the Aibano explosion-proof dome.

52

Culture and sports

Asahi Himuka Cultural Foundation

The Asahi Himuka CulturalFoundation was established in 1985 toenrich the environment of day-to-daylife and to develop a highly culturedcommunity in Miyazaki Prefecture,the cradle of Asahi Kasei. A widerange of cultural activities includesmusical and dramatic events, supportfor local cultural promotion, andfostering familiarity with andunderstanding of folk culture.

In 2004 Kenji Nagatomo, a Nobeokanative and chairman of the JapanAdvertising Photographers’

Association, visited TotoroElementary School in Nobeoka as aguest speaker, describing the essenceof photography and his own approach

to taking photographs. “The bestphotographs capture the spirit of thepeople being photographed,” saysNagatomo.

Athletics support award

In November 2004, Asahi Kaseireceived a “Top Athlete SupportAward” from the Japan OlympicCommittee (JOC). This award isgiven to corporations and schools inrecognition for outstanding supportfor the development of top Japaneseathletes.

Asahi Kasei has long supportedathletic activity, and has top-tier judo,track, and volleyball teams. BetweenMontreal in 1976 and Athens in 2004,a total of thirty-seven employees havecompeted in the Olympics, earningfour gold, three silver, and threebronze medals.

Kenji Nagatomo at Totoro Elementary School. (The Yukan Daily)

JOC award ceremony. (AFLO SPORT)

The track team, in Nobeoka.

The judo team, in Nobeoka.

The Sparkids volleyball team, in Mizushima.Athens gold medalist Masato Uchishiba. (Photo Kishimoto)

Corporate Citizenship

53

Golden Games in Nobeoka

Since 1990, Asahi Kasei hassponsored the “Golden Games” trackmeet in Nobeoka. Competitors rangefrom middle school students toJapan’s top-class runners. The meethas grown from one with some 100competitors and 2000 spectators in itsfirst year, becoming a major eventwith some 800 competitors and 30,000spectators in the 15th games in May2004. The city government andcommunity volunteers have promotedthe growth of the event in accordancewith a vision to raise the vitality ofNobeoka as an athletic city.

The 15th Golden Games.

54

The Asahi Kasei Responsible Care Group

Plant, laboratory, or affiliated company Main products/business lineAsahi Kasei Corp. Tokyo head office 1-1-2 Yurakucho, Chiyoda-ku, Tokyo 100-8440, Japan Tel. +81-3-3507-2060Asahi Kasei Corp. Osaka head office 1-2-6 Dojimahama, Kita-ku, Osaka 530-8205, Japan Tel. +81-6-6347-3111

Nobeoka Region 2-1-3 Asahimachi, Nobeoka, Miyazaki 882-0847, Japan Tel.+81-982-22-2770Fibers Polyester Plant Polyester filament.

Bemberg Plant Cuprammonium rayon, nonwoven cellulose filament.Nonwovens Plant Artificial suede, melt-blown and spunlace nonwovens.R&D Laboratory for fibers & Textiles technology R&D for new fibers.Asahi Kasei Eltas Co., Ltd. Spunbond.Nobeoka Asahi Senni Co., Ltd. Cuprammonium rayon and polyester subcontracting, fish bait.Nobeoka Kakoshi Co., Ltd. Subcontracted work at Nonwovens Plant.

Chemicals Chemicals Plant Nitric acid, caustic soda, chlorine, hydrochloric acid, fertilizer.Electrolysis Systems Plant Technology Dept. Electrolysis systems.Tohmi Plant Explosives, nitrocellulose.Ceolus Plant Microcrystalline cellulose.Detonator Plant Detonators.Leona Plastics & Materials Plant Adipic acid, hexamethylenediamine, nylon 66.Leona Filament Plant Nylon 66 filament.Hyuga Chemicals Plant Coating materials.Nobeoka Power Supply Dept. Utilities (electricity, steam, water)Asahi Kasei Newport Terminal Co., Ltd. Receiving and storage of fuel and feedstocks.Nobeoka Plastics Processing Co., Ltd. Nylon 66 compounding.Leona Kiko Co., Ltd. Packing and shipping of resins and fibers.Asahi Kasei Finechem Co., Ltd. Nobeoka Plant Specialty chemicals.Asahi Chemitech Co., Ltd. Bonded anchors.Asahi Cord Co., Ltd. Tire cord processing, resin production.Asahi Kasei NS Energy Corp. Electricity and steam.

Life & Living VDC Polymer Plant Polyvinylidene chloride resin and latex.Electronics Materials & Finepattern Devices Dept. Fine-pattern coils.Devices Pellicle Dept. Pellicles.

Asahi Kasei Microsystems Co., Ltd. LSIs.Asahi Kasei Techno Systems Co., Ltd. Plant diagnostic and environmental surveillance devices.Asahi Kasei Electronics Co., Ltd. Hall elements, pellicles.

Pharma Nobeoka Pharmaceuticals Plant Pharmaceutical intermediates.Planova Plant Virus removal filters.Asahi Kasei Medical Co., Ltd. Nobeoka Plant Artificial kidneys and other medical devices.Asahi Kasei Aime Co., Ltd. Contact lenses.Asahi Kasei Pharma Support Co., Ltd. Subcontracted work at Nobeoka Pharmaceuticals Plant and Planova Plant.Toyo Kensa Center Co., Ltd. Nobeoka Office Environmental and other analyses, clinical testing, soil pollution evaluation.Asahi Kasei Kankyoujigyou Co., Ltd. Disposing of Asahi Kasei Group industrial waste.New Asahi Services Co., Ltd. Insurance agency, cellular phone sales, bowling center.Asahi Kasei Office One Co., Ltd. Utilization of Asahi Kasei Group assets, subcontracting.

Fuji Region 2-1 Samejima, Fuji, Shizuoka 416-8501, Japan Tel .+81-545-62-2111Chemicals Photo Products Plant Photopolymer.

Fertilizers Plant Fertilizer, nitric acid.Plastics Fabrication Plant Polymethyl methacrylate sheet.Microza Plant Filtration membranes and modules.Fuji Power Supply Dept. Utilities (electricity, steam, water)

Construction Materials Fuji Plant Autoclaved lightweight concrete panels, piles.Fuji Kako Co., Ltd. Construction materials processing.

Pharma Biologics Bulk Production & Technology Dept. Bulk pharmaceuticals and trial medicines.Institute for Life Science Research R&D for new pharmaceuticals.Asahi Kasei Medical Co., Ltd. Biomedical Equipment Center Design and development of medical equipment.

Electronics Materials & Electronics Materials Plant Photosensitive polyimide.Devices Electronics Interconnecting Materials Plant Photosensitive dry film resist.

Electronics Materials Laboratory R&D for new electronics materials.Devices & Sensors Laboratory R&D for new electronics devices.Asahi Kasei Electronics Co., Ltd. Hall elements.

Corporate R&D Central Research Laboratory Advancement of technology, development of new interdisciplinary technology.Analysis & Simulation Center Analysis and computer simulation.Sun Business Services Co., Ltd. Subcontracting.

Corporate R&D 1-1-2 Yurakucho, Chiyoda-ku, Tokyo 100-8440, Japan Tel. +81-3-3507-2285Atsugi Information Technology Laboratory Establishment of new solution-oriented businesses.

Other Sun Trading Co., Ltd. Sales of fibers, chemicals, and medical devices.Asahi Kasei Engineering Co., Ltd. Plant, equipment, process engineering.Sun Associates Co., Ltd. Patent-related subcontracting.Asahi Kasei Information Systems Co., Ltd. Computer software, IT systems.AJS Software Co., Ltd Computer programming, systems operation.Koyo Fudosan Co., Ltd. Real estate brokerage, subcontracted office work.Casanavi Co., Ltd. Building and home fixtures e-marketplace.Asahi Kasei Amidas Co., Ltd. Personnel placement, agency, and training; ISO consulting.Asahi Kasei Ability Co., Ltd. Printing, bookbinding, and office work.Sun Foods Co., Ltd. Provision of employee meals.Asahi Kasei Fukuri Service Corp. Company housing, recreational facilities.Asahi Finance Co., Ltd. Investment, finance.

Asahi Kasei Fibers Corp. 1-2-6 Dojimahama, Kita-ku, Osaka 530-8205, Japan Tel. +81-6-6347-3600Moriyama Office 515 Kojimacho, Moriyama, Shiga 524-0002, Japan Tel. +81-77-581-4001

Fibers Spunbond Plant Spunbond.Roica Plant Elastic polyurethane filament.Power Supply Dept. Utilities (electricity, steam, water)Moriyama Sun Business Co., Ltd. Subcontracting.

Chemicals Hipore Plant Microporous membrane.Construction Materials Marine Materials Development Dept. Artificial fish reefs.Electronics Materials & Electronics Materials Plant Photosensitive polyimide.Devices Asahi-Schwebel Co., Ltd. Glass fabric.

Other R&D Laboratory for Applied Product Evaluation of new fibers, R&D for fiber processing technology.

Plants, laboratories, and affiliated companies implementing Asahi Kasei Group Responsible Care,excluding administrative and sales offices.

55

Plant, laboratory, or affiliated company Main products/business lineAsahi Kasei Chemicals Corp. 1-1-2 Yurakucho, Chiyoda-ku, Tokyo 100-8440, Japan Tel. +81-3-3507-2220

Mizushima Works 3-13 Ushiodori, Kurashiki, Okayama 712-8633, Japan Tel. +81-86-458-2111Chemicals Basic Petrochemical Production Dept. Ethylene, benzene.

1st Monomers Production Dept. Styrene monomer, cyclohexanol, ammonia.2nd Monomers Production Dept. AN Line Acrylonitrile.2nd Monomers Production Dept. Styrene Line Styrene monomer, polycarbonatediol.ABS & SB Latex Production Dept. Acrylonitrile-butadiene-styrene resin, styrene-butadiene latex.Suntec Production Dept. High density polyethylene, low density polyethylene.Tenac Production Dept. Polyacetal.Power Supply Dept. Utilities (electricity, steam, water)New Materials & Chemical Process R&D Laboratory Development of new materials and chemical processes.Sanyo Petrochemical Co., Ltd. Petrochemical feedstocks.PS Japan Corp. Mizushima Plant Polystyrene.Mizushima Sun Business Co., Ltd. Subcontracting.Asahi Kasei Epoxy Co., Ltd. Mizushima Plant Epoxy resin.

Kawasaki Works 1-3-1 Yako, Kawasaki-ku, Kawasaki, Kanagawa 210-0863, Japan Tel. +81-44-271-2021Chemicals AN/XY Production Dept. Acrylonitrile, 2,6-xylenol.

Industrial Chemicals Production and Technology Dept. Sodium cyanide.MMA Production Dept. Methyl methacrylate, cyclohexyl methacrylate.ABS & SB Latex Production Dept. Styrene-acrylonitrile resin, styrene-butadiene latex.Synthetic Rubber Production Dept. Synthetic rubber.Acrylic Plastics Production Dept. Polymethyl methacrylate.Ion Exchange Membranes Production Dept. Ion-exchange membranes.Power Supply Dept. Utilities (electricity, steam, water)Xyron Production Dept. Modified polyphenylene ether.Performance Materials R&D Center Creation of new high performance materials.Specialty Products & Systems R&D Center R&D for membranes, energy materials, water treatment materials and systems.Plastics R&D Center Applied research for plastics and plastic processing.Kawasaki Sun Business Co., Ltd. Contract work.PS Japan Corp. R&D Dept. Polystyrene R&D.PS Japan Corp. Chiba Plant Polystyrene.Nippon Crenol Co., Ltd. 2,6-xylenol.

Electronics Materials & Devices Plastic Optical Fibers Dept. Plastic optical fiber.Corporate R&D Membrane Technology Laboratory Development of new products and new operations based on membrane technology.

Other Oita Plant Explosives.Chikushino Plant Metal cladding.Wakayama Plant Acrylic latex, stencil paper.Japan Elastomer Co., Ltd. Oita Plant Synthetic rubber.Oita Sun Business Co., Ltd. Subcontracting.Asahi Kasei Color Tech Co., Ltd. Plastic compounding.Asahi Kasei Techno Plus Co., Ltd. Plastic molding and sale.Asahi Kasei Geotechnologies Co., Ltd. Sale of industrial explosives.Asahi SKB Co., Ltd. Shotgun cartridges.Asahi Kasei Metals Ltd. Tomobe Plant Aluminum paste.Asahi Kasei Finechem Co., Ltd. Osaka Plant Specialty chemicalsKakuichi Rubber Co., Ltd. Synthetic rubber compounding.

Asahi Kasei Life & Living Corp. 1-1-2 Yurakucho, Chiyoda-ku, Tokyo 100-8440, Japan Tel. +81-3-3507-2939Suzuka Plant 1-1 Hiratanaka-machi, Suzuka, Mie 513-8660, Japan Tel. +81-593-79-5111

Suzuka Plant Polyvinylidene chloride film, biaxially oriented polystyrene sheet/film, polyolefin film/foam.Suzuka Wrap Film Plant Cling film, polyvinylidene chloride fiber.Suzuka Sun Business Co., Ltd. Plastic processing.

Other Asahi Home Products Co., Ltd. Sale of cling film and other household products.Asahi Kasei Pax Corporation Fabricated plastic products.

Asahi Kasei Construction Materials Corp. 2-12-7 Higashi-shinbashi, Minato-ku, Tokyo 105-0021, Japan Tel. +81-3-5473-5251Construction Materials Iwakuni Plant Autoclaved lightweight concrete panels, piles.

Hozumi Plant Autoclaved lightweight concrete panels.Sakai Plant Autoclaved lightweight concrete panels.Shiraoi Plant Autoclaved lightweight concrete panels, piles.Neoma Foam Plant Phenolic foam insulation panels.Asahi Kasei Foundation Systems Co., Ltd. Installation of piles.Sakai Kako Co., Ltd. Construction materials processing.Hozumi Kako Co., Ltd. Construction materials processing.Kyowa Kogyo Co., Ltd. Construction materials processing.Asahi Giko Co., Ltd. Construction materials processing.Chuwa Kogyo Co., Ltd. Construction materials processing.Hokkaido Shiba Kogyo Co., Ltd. Construction materials processing.Tanaka Kiko Co., Ltd. Construction materials processing.

Other Asahi Kasei Marinetech Co., Ltd. Artificial fish reefs.Asahi Kasei Homes Corp. 1-24-1 Nishi-shinjuku, Shinjuku-ku, Tokyo 163-8345, Japan Tel. +81-3-3344-7111Asahi Kasei EMD Corp. 1-23-7 Nishi-shinjuku, Shinjuku-ku, Tokyo 160-0023, Japan Tel. +81-3-6911-2700Asahi Kasei Pharma Corp. 9-1 Kanda Mitoshiro-cho, Chiyoda-ku, Tokyo 101-8481, Japan Tel. +81-3-3259-5777

Ohito 632-1 Mifuku, Izunokuni, Shizuoka 410-2321, Japan Tel. +81-558-76-7011Pharmaceuticals Ohito Pharmaceuticals Plant Pharmaceutical intermediates; animal feed and feed additives.Production & Ohito Diagnostics Plant Diagnostic enzymes, diagnostic reagent kits.Technology Center Kamishima Pharmaceuticals Plant Pharmaceuticals.

Nagoya Pharmaceuticals Plant Pharmaceuticals.Kakegawa Pharmaceuticals Plant Pharmaceutical distribution.Engineering Dept. Design, construction, and maintenance; utilities management.General Management Dept. General management and administration.Safety & Environment Dept. Management of safety and environmental affairs.Asahi Kasei Pharma Support Co., Ltd. Subcontracting of maintenance, safety, and animal care for Asahi Kasei Pharma Corp.RC Dept. Coordination and advancement of RC for Asahi Kasei Pharma.Institute for Life Science Research R&D for new pharmaceuticals and pharmaceutical formulations.

Chemicals Asahi Kasei Clean Chemical Co., Ltd. Environmental chemicals, water treatment equipment.Corporate R&D Biotechnology Group Development of bioprocesses for performance chemicals.Other Toyo Kensa Center Co., Ltd. Environmental and other analyses, clinical testing, soil pollution evaluation.

Other Asahi Kasei N&P Co., Ltd. Shiraoi Plant Pharmaceuticals and functional food additives.Asahi Kasei Medical Co., Ltd. Oita Plant Artificial kidneys and other medical devices.

As of April 2005

56

Facts and Statistics

ISO 14001 certification

* Where all organizational entities of Asahi Kasei Corp. and core operating companies at a given site are included, their individual listing is omitted.

Certified unitCompany Entities included in certification*Date ofinitial

certification

CertificationNo.

Asahi KaseiCorporation

Asahi Kasei FibersCorp.Asahi KaseiChemicals Corp.

Asahi Kasei Life &Living Corp.Asahi KaseiHomes Corp.Asahi KaseiPharma Corp.

Other

ISO 9000-series certification

Note: Due to changes in scope of registration, dates of initial registration shown above do not correspond to certification date for all products handled by eachentity registered.

Fibers

Chemicals

Life & Living

Construction Materials

Homes

Electronics Materials &

Devices

Pharma

Services, Engineering

and Others

Asahi Kasei Fibers Corp.

Chemicals & Plastics

Asahi Kasei Color Tech Co., Ltd.

Asahi Kasei Techno Plus Co., Ltd.

Performance Plastics & Compounds

Performance Coating Materials Division – Wakayama Plant, Hyuga Chemicals Plant,

Asahi Kasei Metals Tomobe Plant, Asahi Kasei Epoxy Mizushima Plant

Asahi Kasei Finechem Co., Ltd.

Indastrial Membranes Div.

Imaging Products Div.

Ion Exchange membranes Div.

Metal Cladding, Explosives Div.

Indastrial Explosives Explosives, Div.

Fastening Products Explosives, Div.

Defence Explosives, Explosives Div.

Asahi Kasei Life & Living Corp.

Asahi Kasei Pax Corp.

Asahi Kasei Construction Materials Corp.

Asahi Kasei Homes Corp.

Electronics Materials Div.

Asahi Kasei Microsystems Co., Ltd.

Asahi-Schwebel Co., Ltd. Moriyama Plant

Asahi Kasei Electronics Co., Ltd.

Plastic Optical Fibers Dept.

Asahi Medical Co., Ltd.

Fine Chemicals & Diagnostics Division

Asahi Kasei Information Systems Co., Ltd. System Integration Div.

Asahi Engineering Co., Ltd.

1994.07.08

1993.11.11

1998.01.12

1998.08.05

1993.11.11

2002.05.14

1993.12.21

1999.12.28

1994.02.21

1995.04.07

1997.03.31

1998.08.01

1998.10.23

1999.03.12

1999.09.27

1993.12.15

1998.09.25

1998.04.24

2002.11.19

1995.04.07

1995.06.09

1995.10.20

1996.06.07

2002.05.31

1994.11.10

2002.08.23

1999.07.23

2002.03.29

ISO9001-JQA0549

ISO9001-JQA0374

ISO9001-JCQA0278

ISO9001-SGS/J051/98

ISO9001-JQA3013

QS-9000-JQA-QS0195

ISO9001-JQA0350

ISO9001-JQAQM4180

ISO9001-JQAQM4618

ISO9001-JQAQM5364

ISO9001-JQA1668

ISO9001-98QR120

ISO9001-JQA2717

ISO9001-JQA3154

ISO9001-BSK0041

ISO9001-JQA0344

ISO9001-JQA2654

ISO9001-RQ1838

ISO9001-BLQ741

ISO9001-JQAQM3841

ISO9001-JQA0899

ISO9001-JQA1008

ISO9002-JQA1301

ISO9001-JQAQM8303

ISO9001-BSIFM29731

ISO9001-JQAQM8669

ISO9001-JQAQM3579

ISO9001-JQAQM804

Segment Registered entity Date of initialregistration Registration No.

Nobeoka

Fuji

Moriyama

Mizushima

KawasakiChibaWakayamaJapan Elastomer Co., Ltd.Asahi Kasei Metals Ltd.Asahi Kasei TechnoplusCo., Ltd.Suzuka PlantAsahi Kasei Pax Corp.

Asahi Kasei Juko Co., Ltd.

Ohito

Asahi Kasei EngineeringCo., Ltd.

Tohmi Plant, Leona Plastics & Materials Plant, Detonators Plant, Asahi ChemitechCo., Ltd., Power Supply Dept., VDC Polymer Plant, Asahi Kasei Electronics Co.,Ltd. Nobeoka Plant, Asahi Kasei Microsystems Co., Ltd. Nobeoka Plant, PolyesterPlant, Nonwovens Plant, Finepattern Devices Dept., Bemberg Plant, Asahi KaseiNewport Terminal Co., Ltd., Leona Filament Plant, Asahi Kasei Medical Co., Ltd.Nobeoka Plant, Electrolysis Systems Plant Technology Dept.

Asahi Kasei Clean Chemical Co., Ltd., Toyo Kensa Center Co., Ltd., AsahiKasei Pharma Support Co., Ltd., Asahi Vet Japan Co., Ltd., Asahi KaseiInformation Systems Co., Ltd., Asahi Kasei Fukuri Service Corp.

1999.10.22

1998.12.25

1997.12.26

1998.03.06

1997.04.211999.03.262004.01.092004.04.161998.05.18

2001.04.08

1998.08.212002.04.12

1998.03.31

1998.08.28

2003.02.07

JQA-EM0561

JQA-EM0302

JQA-E-90093

JQA-E-90117

JQA-E-90033JQA-EM0395JQA-EM3667JQA-E-90033JCQA-E-0021

SGS/J/E127

JQA-EM0207JQA-EM2343

BL-QE E002

JSAE053

JQA-EM2969

Asahi-Schwebel Co., Ltd. Moriyama Plant, Asahi Engineering Co., Ltd.Moriyama Plant

Asahi Kasei Epoxy Co., Ltd. Mizushima Plant, Sanyo Petrochemical Co., Ltd.Mizushima Plant, PS Japan Corp. Mizushima Plant

Nippon Crenol Co., Ltd., PS Japan Corp. R&D Dept.PS Japan Corp. Chiba Plant

Oita Plant

Gunma Plant, Ono Plant, Ageo Plant

Shiga Plant

Head Office

57

Industrial waste generated at construction sites of Asahi Kasei Homes

2000

New construction

Dismantling

Total

16.6

39.1

55.7

8.7

19.7

28.4

7.1

15.0

22.1

6.1

19.6

25.7

2001 2002 2003

5.8

17.9

23.6

2004

(thousand tons)

OHSAS 18001 certification

Certified siteCompany Standard Date of certification Certification No.

Asahi Kasei Metals Ltd. Tomobe Plant

Kawasaki Works Ion Exchange Membranes Div.

Asahi KaseiChemicals Corp.

OHSAS18001

OHSAS18001

2002.07.22

2003.06.27

JCQA-0-0004

JQA-OH0044

Chemical recycling of PET bottles by Asahi Kasei Fibers (tons)

Fiscal year

Tons

2001

171

2002

646

2003

622

2004

748

Releases and transfers of PRTR substances by fiscal year

2000Fiscal year

To the atmosphere

To water

To soil

Total

Transfer

4,724

170

0

4,894

2,134

2,273

168

0

2,441

1,985

1,594

130

0

1,724

2,685

1,457

149

0

1,606

3,550

2001 2002 2003

968

91

0

1,059

4,381

2004

(tons)

Rel

ease

s

FY 2004 treatment and disposal of industrial waste* by business unit

Wastegenerated Recycling

Volumereduction Landfill

EffluentRecycling

Volumereduction

On-site Off-site

Finaldisposal

(thousand tons)

* Not including waste generated from non-recurring events such as dismantling closed plants or waste generated from dismantling old homes when constructing new homessold by Asahi Kasei Homes.

Asahi Kasei Fibers

Asahi Kasei Chemicals

Asahi Kasei Life & Living

Asahi Kasei Construction Materials

Asahi Kasei EMD

Asahi Kasei Pharma

Independent businesses group

FY 2004 total

cf., FY 2003

cf., FY 2002

cf., FY 2001

cf., FY 2000

36.1

220.3

15.8

64.0

6.5

12.5

0.1

355.4

424.1

395.4

362.9

361.9

24.7

37.6

0.0

25.3

0.0

0.3

0.0

87.9

126.3

53.6

44.0

3.5

0.0

105.2

0.0

0.0

0.5

1.9

0.0

107.7

120.6

182.9

183.3

187.5

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.1

0.1

0.1

0.1

11.3

77.6

15.8

38.7

6.0

10.2

0.1

159.7

177.1

158.8

135.5

170.8

10.5

60.6

8.7

32.6

4.0

7.6

0.1

124.1

135.9

114.7

98.6

122.0

0.2

13.3

0.1

0.8

1.9

1.8

0.0

18.2

17.4

18.3

11.4

21.9

0.7

3.6

6.9

5.4

0.1

0.8

0.0

17.4

23.8

25.9

25.4

26.8

ALC trimmings recycled by Asahi Kasei Construction Materials(tons)

Fiscal year

Tons

2001

508

2000

375

2002

630

2003

749

2004

796

58

Notes: • Substances listed are those of which total release was 5 tons or more.• All figures rounded to the nearest ton.

FY 2004 releases and transfers of PRTR-specified substances

N,N-dimethylformamide

Tetraflouroethylene

Hexamethylenediamine

Trichlorotrifluoroethane (CFC-113)

3-Chloropropene (allyl chloride)

Toluene

Styrene

Molybdenum and its compounds

Dichloromethane (methylene chloride)

Tetrachloroethylene

Methyl methacrylate

Ethylbenzene

Xylene

Methyl acrylate

1,1-Dichloroethylene (vinylidene chloride)

Chloroethylene (vinyl chloride)

Chloroethane

1-Chloro-1,1-difluoroethane (HCFC-142b)

1,3,5-Trimethylbenzene

Xylene



Toluene

Dichloropentafluoropropane (HCFC-225)

Asahi Kasei Fibers

Asahi Kasei Chemicals

Asahi Kasei Life & Living

Asahi Kasei Construction Materials

Asahi Kasei EMD

Asahi Kasei Pharma

Subtotal

Nobeoka

Nobeoka

Mizushima

Moriyama

Fuji

Kawasaki

Nobeoka

Suzuka

Fuji

Sakai

Hozumi

Nobeoka

Nobeoka

0.0

42.0

7.2

16.0

9.1

7.4

36.9

0.0

41.5

21.6

43.7

31.5

20.6

2.6

36.0

12.2

213.7

102.9

13.9

12.8

109.8

83.3

6.0

15.5

886.0

81.4

967.4

7.2

0.0

31.5

1.4

0.0

0.4

0.0

9.7

0.0

0.0

0.8

0.0

0.0

5.5

0.9

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.2

0.0

0.0

153.4

40.2

19.2

1.2

1.1

186.0

127.7

62.2

0.2

28.8

0.0

0.0

0.0

0.4

2.9

4.8

3.4

0.0

2.8

634.5

3746.4

4380.9

Core operating company SubstanceSiteReleases to:

Atmosphere Water SoilTransfers

Release of priority atmospheric pollutants by fiscal year

1996 1997 1998 1999 2000 2001 2002 20032003target

Acrylonitrile

Acetaldehyde

Vinyl chloride monomer

Chloroform

Dichloromethane

1,2-Dichloroethane

Tetrachloroethylene

Trichloroethylene

Ethylene oxide

1,3-Butadiene

Benzene

Formaldehyde

Total

109

-

53

0.3

568

9

161

5

5

371

7

4

1,292

1995

113

-

60

0.3

536

10

164

2

6

419

9

7

1,326

101

-

63

0.3

495

9

150

6

5

367

8

4

1,208

109

-

61

0.2

486

8

118

2

5

83

7

4

883

84

4

23

0.3

476

6

94

2

4

26

5

3

727

51

3

21

0.2

340

6

92

2

4

15

5

4

543

40

1

14

0.2

141

10

48

2

5

10

3

6

281

29

0.5

12

0.5

96

8

38

0.3

5

10

5

6

211

6

0.5

12

0.2

72

11

46

0.0

5

5

6

4

168

2004

6

0.6

12

0.1

52

4

22

0.0

5

3

4

5

114

7

0.5

8

0.2

56

5

35

2

3

8

4

4

134

(tons)

(tons)

Others (total release of less than 5 tons)

Total

59

Facts and Statistics

FY 2004 release of priority atmospheric pollutants by core operating company

Acrylonitrile

Acetaldehyde

Vinyl chloride monomer

Chloroform

Dichloromethane

1,2-Dichloroethane

Tetrachloroethylene

Trichloroethylene

Ethylene oxide

1,3-Butadiene

Benzene

Formaldehyde

Total

(tons)

Asahi KaseiFibers

Asahi KaseiChemicals

Asahi KaseiLife & Living

Asahi KaseiConstruction

Materials

Asahi KaseiEMD

Asahi KaseiPharma Total

-

0.5

-

-

-

-

-

-

-

-

-

3.9

4.4

6.3

-

0.01

0.1

46.7

2.2

21.6

-

-

3.3

3.9

1.4

85.6

0.1

-

12.2

-

-

-

-

0.0

-

-

-

-

12.3

-

-

-

-

-

-

-

-

-

-

-

0.05

0.05

-

0.03

-

-

-

-

-

-

-

-

-

0.02

0.05

-

-

-

-

5.3

1.4

-

-

4.9

-

-

-

11.6

6.4

0.6

12.2

0.1

52.0

3.6

21.6

0.0

4.9

3.3

3.9

5.4

114.0

Release of air and water pollutants by fiscal year

2000 2001 2002 2003

SOx

NOx

Soot and dust

Waste water effluence

COD

Nitrogen

Phosphorus

8,485

6,839

309

361

1,971

-

-

7,543

6,431

260

349

2,164

-

-

5,941

6,099

282

339

1,975

6,761

47

6,114

4,881

224

249

1,438

5,960

28

2004

7,179

5,356

211

232

1,549

5,948

14

(tons except water effluence, million m3)

FY 2004 release of air and water pollutants by site

Nobeoka Mizushima Moriyama Fuji

SOx

NOx

Soot and dust

Waste water effluence

COD

Nitrogen

Phosphorus

Ohito Kawasaki Others Total

(tons except water effluence, million m3)

5,786

2,982

68

140

744

5,108

0

558

1,927

95

35

116

335

3

0

67

1

14

12

16

2

14

63

0

13

13

91

3

5

13

1

1

1

3

0

3

150

11

17

461

354

3

812

155

35

11

203

41

4

7,179

5,356

211

232

1,549

5,948

14

60

Greenhouse gas emissions by fiscal year

Baseline* 2010 target

Carbon dioxide

Nitrous oxide

Methane

HFCs

PFCs

Sulfur hexafluoride

Total

5.06

6.82

0

0.16

0.01

0

12.06

2000

5.10

3.59

0

0.21

0.07

0.02

8.99

2001

4.88

0.75

0

0.18

0.07

0.01

5.90

2002

4.86

0.56

0

0.19

0.09

0.02

5.73

2003 2004

4.73

0.56

0

0.20

0.11

0.03

5.63

4.90

0.67

0

0

0.01

0.02

5.60

4.87

0.90

0.01

0.16

0.13

0.03

6.10

(million tons CO2 equivalent)

FY 2004 greenhouse gas emissions by business unit

Carbon dioxide

Nitrous oxide

Methane

HFCs

PFCs

Sulfur hexafluoride

Total

(thousand tons CO2 equivalent)

* FY 1990 for carbon dioxide, dinitrogen oxide, and methane; FY 1995 for HFCs, PFCs, and sulfur hexafluoride.

(million yen except employees)Consolidated financial performance

Fiscal year

Sales

Ordinary profit

Net income (loss)

Employees

2000

1,269,414

86,747

25,177

26,695

2001

1,195,393

39,849

5,180

26,227

2002

1,193,615

50,389

(66,791)

25,730

2003

1,253,534

53,643

27,672

25,011

2004

1,377,697

112,876

56,454

23,820

Lost workday injury indices

Asahi Kasei Group



Asahi Kasei Group



Frequency rate

Severity rate

2000

0.35

0.89

1.02

0.029

0.08

0.12

2001

0.27

1.03

0.97

0.045

0.16

0.10

2002

0.21

0.83

0.98

0.024

0.07

0.12

2003

0.20

0.92

0.98

0.034

0.07

0.11

2004

0.36

0.88

0.99

0.011

0.06

0.11

Asahi KaseiFibers

Asahi KaseiChemicals

Asahi KaseiLife & Living

Asahi KaseiConstruction

Materials

Asahi KaseiEMD

Asahi KaseiPharma

Independentbusinesses

groupTotal

318

2

0

2

0

0

322

4057

894

0

0

0

0

4951

98

0

0

148

0

0

247

129

0

0

0

0

0

129

111

0

0

5

82

34

233

149

0

0

2

48

0

199

10

0

12

0

0

0

22

4871

897

12

157

131

34

6102

Note: Fatalities contributed to the fiscal 1987 and fiscal 1996 peaks in the severity rate graph on p. 38. Three fatalities occurred in fiscal 1987, due to an automobilecollision, an airplane crash, and a collapsing mound; one fatality occurred in fiscal 1996, due to crushing by machinery.

Fiscal year

Independent Review

61

[translation from Japanese]

May 31, 2005

Verification Advisory CommitteeChairman

Akio Yamamoto

Responsible Care Verification CenterChief DirectorYasuo Tanaka

To: Shiro Hiruta, PresidentAsahi Kasei Corporation

Scope and Objectives of Verification

Responsible Care Report Verification was performed with respect to the Responsible Care Report 2005 Edition (“the Report”)prepared by Asahi Kasei Corporation, with the objective of expressing an opinion as a chemical industry specialist with respect tothe following:

1. Reasonableness of methods of calculation and aggregation of performance metrics (numerical values), and the accuracy ofnumerical values.

2. Consistency of reported information other than performance metrics (numerical values) with supporting documents andmaterials.

3. Evaluation of Responsible Care activities.4. Characteristics of the Report.

Verification Procedure

• At the head office: Examination of the reasonableness of methods of aggregation and compilation of performance metricsreported from each site (office, plant) and confirmation of the consistency of reported information with supporting materialswere performed through interviews of responsible parties and compilers of the Report and receipt of internal documents andexplanation thereof.

• At the Ohito administrative area and the Kawasaki Works: Examination of the reasonableness of methods of calculation andaggregation of performance metrics reported to the head office, examination of the accuracy of numerical values, andconfirmation of the consistency of reported information with supporting documents and materials were performed throughinterviews of responsible parties and compilers of the Report and receipt of internal documents and explanation thereof.

• Performance indices and reported information were verified by sampling.

Opinion

1. Reasonableness of methods of calculation and aggregation of performance metrics (numerical values); accuracy of numericalvalues.

• Performance metrics at the head office, the Ohito administrative area, and the Kawasaki Works have been calculated andaggregated reasonably and accurately.

• Some inconsistency was found between performance numerical values of the head office and some sites. Corrections weremade.

2. Consistency of reported information with supporting documents and materials.• Information contained in the report was confirmed to be consistent with supporting materials. Some minor issues related to

appropriateness of expression and ease of understanding were identified in the draft stages, but these are rectified in thepresent Report and no important matters warranting correction are believed to exist at present.

3. Evaluation of Responsible Care measures.• It is highly noteworthy that the entire group is making progress toward its target of zero emission, and that the Ohito

administrative area and Kawasaki Works have targets stricter than those of the group and are achieving positive results.• It is noteworthy that all main production bases, including the Ohito administrative area and the Kawasaki Works, publish their

own RC Reports and strive for a good relationship with the local community.• It is noteworthy that information related to accidents and legal noncompliance is disclosed, and that concrete and systematic

measures to prevent recurrence are advancing.4. Characteristics of the Report.• It is noteworthy that measures in many fields are presented in an easy-to-understand format in the new Highlights section, and

that photos and comments of personnel are included to draw the reader’s interest.

ASAHI KASEI CORPORATIONCorporate ESH & QA

1-1-2 Yurakucho, Chiyoda-ku, Tokyo 100-8440, Japan

Phone: +81-3-3507-2192, Fax: +81-3-3507-2452

www.asahi-kasei.co.jp/asahi/en/aboutasahi/env/

Published December 2005

Trademark or registered trademark of Asahi Kasei Corporation, affiliated companies,or third parties granting rights to Asahi Kasei Corporation of affiliated companies.

TM:

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