responsible care report 2002 edition - 旭化成株式会社responsible care report 2002...

For life, living, and the living environment.

Responsible Care

Environmental Preservation, Product Safety, Operational Safety,

Workplace Hygiene and Health

Responsible Care Report 2002 EditionResponsible Care Report 2002 EditionEnvironmental Preservation, Product Safety, Operational Safety,

Workplace Hygiene and Health

MESSAGE FROM THE PRESIDENT

The constant transformation which the Asahi Kasei Group has undergone ever since its establishment is the result of a directed evolution and growth in accord with the times, and our products now find use in practically every field of human activity.

The ecological sustainability of our wide-ranging operations is ensured in accord with the Basic Credo of the Asahi Kasei Group adopted on January 1, 2001, which includes contribution to human life and human livelihood as basic tenets.

We have long been committed to the securement of environmental, product, and operational safety for our employees, the communities in which we work, and society, through our comprehensive environmental preservation, product safety, operational safety, and workplace hygiene and health (ESH) efforts. We have reduced the environmental burden of our operations, improved product safety informed by careful determination of potentially harmful effects, and enhanced operational safety throughout the corporation. In each of these areas, we have committed our material and intellectual resources to the advancement of environmental protection, product safety, and workplace hygiene and health. Greater thoroughness and vitality was brought to the comprehensive effort through the introduction of our Responsible Care initiative, inclusive of all ESH-related issues, in 1995.

As an essential part of our corporate responsibility both domestically and internationally, and in concert with our Responsible Care initiative, we will

continue our concerted effort for improvement in environmental, product, and operational safety throughout all the corporate activities from R&D to production and marketing.

On March 12, 2002, a fire occurred at our LeonaTM nylon 66 plant in Nobeoka. Though no one was injured, it forced a temporary suspension of nylon 66 intermediates, polymer, and compounded resins production. The utmost efforts are presently being devoted to a thorough investigation of the cause and a clear assessment of the damage, and we are determined to implement proper measures to ensure against the possibility of any such incident ever recurring.

As a measure to build trust and understanding, an important aspect of our Responsible Care program is the open provision of information regarding ESH issues in the Asahi Kasei Group. This report describing the state of our ESH activities and efforts during fiscal 2001 (ended March 31, 2002) is the latest in a series of reports we publish each year, as a key element of our Responsible Care program. I hope you will find it informative, and welcome any questions or comments you may have.

Kazumoto YamamotoPresidentJuly 2002

Responsible Care

Asahi Kasei Group Overview

History of Growth

Basic Credo of the Asahi Kasei Group

Asahi Kasei Responsible Care Principles

Responsible Care Activities of the Asahi Kasei Group

Environmental Protection

Product Safety

Physical Integrity and Safe Operation

Workplace Safety, Hygiene, and Health

Education and Training Systems

Awards Based on ESH Results

Community Outreach

Environmentally Efficient Products and Technologies

Asahi Kasei Group Locations and Plants

Frequently Asked Questions

Independent Review Report

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Contents

Asahi Kasei Group 2002 Responsible Care ReportThe Japanese Ministry of the Environment’s Environment Report Guidelines, 2000 edition, were consulted during the preparation of this report. The content of this report is not limited to environmental protection, but comprises information related to all of our Responsible Care activities, including product safety, operational safety, and workplace hygiene and health. We have revised the content of the report based on the feedback that we have received from readers of previous years’ reports, and enhanced the presentation of information for greater ease of understanding.

The purview of the report includes all domestic operations of the Asahi Kasei Group shown on p. 43. The most recent data contained in the report is for fiscal 2001 (April 1, 2001 to March 31, 2002). Data which is aggregated by calendar year is so indicated.

This report is published each year in July. Our first ESH report was published in 1992, and we have published reports each year since 1997. This year’s report is our eighth.

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Consolidated net sales

Consolidated group employees

Net sales by sector

Major products

Asahi Kasei Group Overview

Chemical and Chemical-related37%

Housing and Construction Materials34%

Fibers and Textiles11%

Electronics5%

Health Care8%

Liquors, Services and Others5%

Milli

ons

of y

en

1,194,462 1,195,393

1999 2001

2001

2000

1999 2000

26,227

0

300,000

600,000

900,000

1,200,000

1,500,000

0

5,000

10,000

15,000

20,000

25,000

30,000

Chemical and Chemical-related

•Ammonia, nitric acid, caustic soda, high-compound fertilizers, acrylonitrile (AN), styrene monomer, methyl methacrylate (MMA) monomer, polymethyl methacrylate, Suntec™ polyethylene (PE), Polystyrene (PS), Stylac™-AS styrene-acrylonitrile, Stylac™-ABS acrylonitrile-butadiene-styrene, SB latex, synthetic rubber, thermoplastic elastomers (TPEs).

•Tenac™ polyacetal, Xyron™ modified polyphenylene ether (mPPE), Leona™ nylon 66, molding machine purging agent.

•Adipic acid, cyclohexanol, Duranate™ non-yellowing polyisocyanate, aluminum paste, nitrocellulose, epoxy resin, acrylic latex, and other coating materials.

•Saran Wrap™ food wrapping films, Ziploc™ food storage bags, films, sheets, foams.

•Ceolus™ and Avicel™ microcrystalline cellulose, industrial cleaning agents, bonded anchors, industrial explosives, defense explosives, metal cladding, APR™ photosensitive resins, AFP™ photosensitive plates, printing plate making systems, Microza™ ultrafiltration and microfiltration membranes and systems, Hipore™ fine porous membranes, ion-exchange membranes, electrolysis and electrodialysis systems.

Housing and Construction Materials

•Hebel Haus™ houses, Hebel Maison™ apartments, condominiums, remodeling real estate, residential land development.

•Hebel™ autoclaved lightweight concrete (ALC) panels, piles, Neoma™ foam insulation panels, artificial fish reefs.

Fibers and Textiles

•Cashmilon™ acrylic staple, Pewlon™ acrylic filament, polyester filament, Bemberg™ cuprammonium rayon, Roica™ elastic polyurethane filament, Leona™ nylon 66 filament, Eltas™ spunbond, Bemliese™ nonwoven cellulose filament, Lamous™ artificial suede, Solo™ polytrimethylene terephthalate.

Electronics

•Sunfort™ photosensitive dry film resist (DFR), Pimel™ photosensitive polyimide, LSIs, Hall elements, pellicles, glass fabric.

Health Care

•Elcitonin™, Bredinin™, and other pharmaceuticals, pharmaceutical intermediates, diagnostic reagents, feed additives, Planova™ virus removal filters, artificial kidneys, Sepacell™ leukocyte reduction filters, blood and plasma filters, contact lenses.

Liquors, Services and Others

•Fukumusume™ and other sake, shochu, Hi-Liki™ and other shochu fizz, salt.

•Plant, equipment, process engineering.

1,269,414

26,580 26,695

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Tokyo Head Office: 1-1-2 Yurakucho, Chiyoda-ku, Tokyo 100-8440 Japan

Phone: +81-(0)3-3507-2060 Fax: +81-(0)3-3507-2495

Osaka Head Office: 1-2-6 Dojimahama, Kita-ku, Osaka 530-8205 Japan

Phone: +81-(0)6-6347-3111 Fax: +81-(0)6-6347-3077

Paid-in capital: 103,388 million (as of March 31, 2002)

Fiscal year

Fiscal year

Responsible Care

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The history of Asahi Kasei is a history of growth. The first three milestones came in rapid succession: the founding of Nihon Chisso Hiryou K.K. (Japan Nitrogeneous Fertilizer Company) by Shitagau Noguchi, the start of ammonia production by the Casale process at Nobeoka, Miyazaki Prefecture in October 1923, and the start of rayon production at Asahi Silk Weaving Co., Ltd., Zeze, Shiga Prefecture in the following year.

Utilizing this ammonia, Japan Bemberg Fiber Co., Ltd. began production of Bemberg™ rayon by the cuprammonium process in April 1931, and in May of the same year the Nobeoka plant of Nihon Chisso Hiryou was spun off and established as Nobeoka Ammonia Fiber Co., Ltd., the formal establishment date of Asahi Kasei.

The first decades were a time of growth through expansion in the production of industrial chemicals and chemical derivatives such as caustic soda, chlorine, fertilizers, nitrocellulose and industrial explosives, Bemberg™ and viscose rayon cellulosic fibers (viscose rayon production ended September 2001), and Asahi Aji* flavor enhancer. The years following World War II began broader ranging expansion into new fields, which has brought Asahi Kasei to the forefront of the Japanese chemical industry.

Fibers and Textiles Bemberg™ and viscose rayon were complemented with Cashmilon™ acrylic staple fiber in May 1959, followed by nylon 6 filament in February 1964 (production ended June 1994), polyester filament in June 1969, Leona™ nylon 66 filament in June 1970, Roica™ elastic polyurethane filament in February 1971, and spunbond nonwoven fabric in September 1973, to establish Asahi Kasei as a comprehensive maker of cellulosic and synthetic fibers. In 1994, Asahi Kasei Textiles, Ltd. and holdings in Nippon Synthetic Fibers Co., Ltd. were absorbed, for integrated fiber operations over the full range of R&D, production, and marketing, from materials to textiles.

Chemical and Chemical-related We began commercial production of acrylonitrile monomer in 1962 and synthetic rubber in 1964. With the start-up of our ethylene plant in April 1972, our Mizushima petrochemical complex became the key supply base for our operations in petrochemicals and derivatives. Production of a variety of plastics began in the 1960s and 1970s, including PMMA, HDPE, Tenac™ polyacetal, and Leona™ nylon 66. In April 1975, we led the world with chlor-alkali production using the ion-exchange membrane process. In October 1982, the operations of Asahi-Dow in styrenic resins, Xyron™ m-PPE, LDPE, plastic foams, and Saran Wrap™ and other polyvinylidene chloride resin products were merged into the rapidly expanding product stream.

Specialty Products and Systems operations include photosensitive resins, coating materials, and pharmaceutical excipients. Our first ion-exchange membrane plant in Kawasaki was completed in 1961, and other major milestones, marking world-leading advances, were achieved in the development of ion-exchange membranes and membrane processes for chlor-alkali and salt production since that time. Operations also include microporous membranes for use as lithium-ion battery separators and hollow-fiber

membrane systems for ultrafiltration and microfiltration.

Housing and Construction MaterialsConstruction materials operations began with the production of Hebel™ autoclaved lightweight concrete in August 1967, which was soon followed by the production of autoclaved high-strength piles and then autoclaved concrete steel composite piles. Most recently, the Neoma™ high-performance phenolic foam insulation panel was commercialized in October 2000. Housing operations began in 1972 with the introduction of the quality Hebel Haus™ product line. From the beginning, their market leading design and ALC construction have brought rapid and continuing growth, throughout all targeted urban and metropolitan areas, led by innovations in three-story homes, two-generation homes, and most recently the Long Life Home concept.

Electronics A major milestone in the development of operations in the electronics sector has been the growth of Asahi Kasei Microsystems Co., Ltd., since its establishment in 1983, driven by market leading innovations in LSIs, crystal oscillator ICs and other devices for mobile phone and other demanding applications. Materials produced by Asahi Kasei for the electronics industry include dry film resist, photosensitive polyimide, and glass fabric.

Health Care The development of an extensive range of bulk and intermediate pharmaceuticals began in 1970. Major developments included the introduction of our first anti-cancer agent in 1978 and first thrombolytic agent in 1991. In 1992, the pharmaceuticals operating base, market position, and R&D effort were reinforced and expanded by the acquisition of Toyo Jozo. Asahi Medical was established in 1974 for operations in artificial kidneys and other medical devices. Biotechnology-related products include fine chemicals and virus-removal filters.

Liquors, Services and Others The 1992 Toyo Jozo merger also brought our entry into alcoholic beverages operations. Operations in this sector also include engineering, information systems, and salt production. Foods operations, including the Asahi Aji* flavor enhancer first marketed in 1935, were divested to Japan Tobacco Inc. in July 1999.

Today the drive continues, for new advances in both established and leading-edge perations that will write the future history of growth.

TM Trademark or registered trademark of Asahi Kasei Corporation.* Registered trademark of Japan Tobacco Inc.

History of Growth

Nobeoka Office.

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The Basic Credo of the Asahi Kasei Group wasformulated to clarify our identity, objectives, and principles of action

as we move forward into the 21st century.

We the Asahi Kasei Group, through constant innovation and advances based in science

and the human intellect, will contribute to human life and human livelihood.

1. We will create new value, thinking and working in unison with the customer, from the

perspective of the customer.

2. We will respect the employee as an individual, and value teamwork and worthy

endeavor.

3. We will contribute to our shareholders, and to all whom we work with and serve, as

an international, high earnings enterprise.

4. We will strive for harmony with the natural environment and ensure the safety of our

products, operations, and activities.

5. We will progress in concert with society, and honor the laws and standards of

society as a good corporate citizen.

Breakthrough - Together

Move beyond the current limits, open the path, share the advance...

• Focus - Customer

• Development - Global

• Dynamics - Group

Basic tenets

Guiding precepts

Action guideline

Basic Credo of the Asahi Kasei Group

....................................Act with the customer as the starting point...............................Act in a global field of vision.

....................................Act for a group structure of independent

　　　　　　　　　 enterprises in mutual rivalry.

Ensuring environmental protection, product safety, and operational safety throughout all business activities has long been recognized as a fundamental obligation of the Asahi Kasei Group, and public interest has heightened as awareness of global environmental issues has grown.

Environmental protection issues today, including global warming and endocrine disrupters, are worldwide in scope. The rational use of raw materials, energy conservation, recycling, and minimization of wastes and effluents are essential for ecology and preservation of natural resources.

Product development from the perspective of the customer, thoroughgoing quality control, and provision of safety information and guidance to ensure safe and proper product use are important aspects of product safety in recognition of our product liability obligations.

Operational safety is an essential part of the corporate foundation. The level of safety is continuously heightened, with each employee bearing responsibility.

All ESH activities of the Asahi Kasei Group are integrated in our voluntary Responsible Care program. We recognize that simply observing laws and regulations is not sufficient to effectively contend with certain ESH issues such as global environmental problems, and are determined to continue to improve environmental protection measures on a voluntary basis.

We will strive for harmony with the natural environment andensure the safety of our products, operations, and activities.

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Responsible Care

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Asahi Kasei Responsible Care Principles

The basic tenets, guiding precepts, and action guideline of theBasic Credo of the Asahi Kasei Group are fulfilled in accordance with these

Responsible Care Principles.

Throughout the product life-cycle from R&D to disposal, utmost consideration is given

to environmental preservation, product safety, operational safety, and workplace

hygiene and health as preeminent management tasks in all operations worldwide.

• Environmental preservation is achieved by ameliorating the environmental burden of

operations while giving full consideration to the environment in the development of

new technologies and products.

• 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

attainment of self-imposed targets based on results of risk assessment. Public

understanding and trust is gained through proactive communication and information

disclosure.

June 4, 2002

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Corporate regulations for Responsible Care management have been enacted for efficient implementation of Responsible Care throughout

the Asahi Kasei Group. The following figure shows the roles of Responsible Care implementation organizationally.

Responsible Care Implementation

Historically, progress in dealing with pollution and maintaining safety in Japan was achieved through legal regulation and administrative guidance. However, with technology becoming increasingly advanced and complex, and the pace of technological innovation rising, simple application of uniform rules is no longer sufficient.

At the same time, concern has arisen that global environmental problems such as global warming and stratospheric ozone depletion may even threaten the future of human existence. As a solution to such problems, recognition has emerged that corporations must not only satisfy legal regulations but also voluntarily and proactively engage in environmental protection activities based on a comprehensive understanding and awareness of the effects that their business operations have on the environment.

It was against a background of such trends that Responsible Care was conceived in Canada in 1985. In 1995 the Japan Responsible Care Committee was established, with Asahi Kasei among the founding members. While Responsible Care originated in the chemical industry, the Responsible Care program at the Asahi Kasei Group is implemented comprehensively throughout all operations, including non-chemical operations.

The Concept of Responsible Care

Responsible Care at Asahi Kasei

Responsible CareResponsible Care represents the commitment and initiative to secure and improve safety and environmental protection at every step of the product life-cycle through the individual determination and responsibility of each firm producing and handling chemical products. Responsible Care also entails measures to gain greater public trust through communication and dialog.

EnvironmentalPreservation

ISO 14001

Responsible Care

CommunityOutreach

Safety and HealthProduct Safety

ISO 9000series

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Responsible Care

The Responsible Care management system at the Asahi Kasei Group employs a plan-do-check-act cycle for systematic and continuous reevaluation and improvement of EHS activities. Internal company business unit Presidents and General Managers of each regional Office are required to conduct yearly internal audits of the Responsible Care system, execution, and results within their internal companies and regions, and prepare yearly reports based on these audits for presentation to the Responsible Care Secretariat.

Based on these audit reports, the General Manager of the Environment, Safety & Production Technology Administration, with ultimate responsibility for Responsible Care oversight, conducts audits of each internal company business unit and each regional Office, and reports the results to the Responsible Care Committee, where they are used to guide revisions to the Responsible Care policies.

Responsible Care Management System

President

Presidents of internal company business units*

*Responsible for implementation within their respective organizations.

Responsible Care implementation

General Managers, regional Offices*

General Managers, corporate-level administrative departments*

General Manager, Environment, Safety & Production Technology Administration

Responsible CareCommittee

Note: Internal company business unit structure adopted June 28, 2001.

(responsible for oversight)

Responsible Care SecretariatEnvironment & Safety Department,Quality Assurance & Product SafetyDepartment

Responsible Care management system

President General Manager of the Environment, Safety & Production Technology Administration

Presidents of internal company business units,General Managers of regional Offices

Responsible Care Principles

Review (Responsible Care Committee)

Responsible Care GuidelinesPolicies and targets ateach internal company

business unit andregional office

Plans

Implementation

Audit

Review

Corporate Audit

Responsible Care Report

RC DoAct

Check

Plan

RC DoAct

Check

Plan

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Responsible Care Guidelines

Methods of Responsible CareImplementation

The Asahi Kasei Group utilizes ISO 14001-compliant environmental management systems and ISO 9000 series-compliant quality management systems as methods to implement Responsible Care activities. We are also adopting occupational health & safety management systems (OHSMS) compliant with guidelines published by the Japanese Ministry of Health, Labor and Welfare.

Group-wide Responsible Care Principles are determined by the Responsible Care Committee, chaired by the President.

Specific objectives based on the Responsible Care Principles are defined in the Responsible Care Guidelines. Responsible Care Guidelines for fiscal 2002 are shown below.

Each of these is a system adopted voluntarily which utilizes specified plan-do-check-act cycles for successive and ongoing implementation - comprising policies and plans and their execution and administration, inspections and corrective measures, and review by management.

Environmental management systemQuality management systemOccupational health & safety management system

Group-wide Responsible CarePrinciples

Specific Responsible Care Measures

Fiscal 2002 Responsible Care Guidelines

Environmentalprotection

Product safety

Operational safety

Workplace safety and hygiene

Health

• Elimination of environmental pollution from accidents.

• Reduction of final disposal volume of industrial waste by 20% (interim objective toward zero emission).

• Reduction of unit energy consumption by 1%.

• Reduction of greenhouse gas emissions by 1%.

• Reduction of hazardous atmospheric pollutant release by 25%.

• Reduction of release and transfer of PRTR-specified substances.

• Elimination of product safety incidents.

• Elimination of industrial accidents.

• Achieve frequency rate* for lost-workday injuries of 0.1 or less.

• Achieve severity rate** for lost-workday injuries of 0.005 or less.

• Systematize and unify base for health support.

• Reduce proportion of employees receiving health cautions.

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*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.

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Responsible Care

Measures at Internal CompanyBusiness Units and Regional Offices

Corporate Responsible Care Audits

Responsible Care audits of each internal company business unit and regional Office are performed by the General Manager of the Environment, Safety & Production Technology Administration. For fiscal 2001, audits comprised the items shown below.

• Implementation of the plan-do-check-act cycle.

• Implementation of critical measures based onResponsible Care Plans.

• Progress in responding to issues designated forstudy as a result of the fiscal 2000 audit.

• Incidence of environmental or safety accidents,and measures taken to prevent recurrence.

• Product safety information and implementationof related measures.

• Product safety inquiries and their responses.

• Measures related to recycling of product,containers, and packaging.

• Zero-emission plans and progress ofimplementation.

• To reduce greenhouse gas emissions, we must implement surefooted energy conservation measures.

• We can expect the further regulation of environment-related issues. Each internal company business unit and each regional Office mustkeep abreast of relevant information to enable unhindered compliance.

• Each internal company business unit has the responsibility tomanage its own safety issues.

• Preventing environmental and safety incidents is not just a plantmaintenance issue, but also requires adequate systems for managementand public response, with periodic training and drills.

Responsible Care Committee Review The 8th Responsible Care Committee Meeting (June 3, 2002)

Reports were presented on results of Responsible Care measures implemented in fiscal 2001. As a result of deliberations, corporate Responsible Care Principles and corporate regulations for Responsible Care management were revised.

The Responsible Care Committee receives reports concerning Responsible Care implementation at each internal company business unit and at the group-wide level, and determines any necessary changes to be applied to the Responsible Care Principles for the following fiscal year based on a review of these reports.

Closing remarks from the Chair

Corporate Responsible Care Audit

Responsible Care Committee

Internal company business unit Presidents and General Managers of each regional Office determine specific targets in accordance with the Responsible Care Principles and Responsible Care Guidelines, and prepare medium-term plans to achieve these targets.

Responsible Care Reports

Responsible Care Verification

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To verify that the Responsible Care program of the Asahi Kasei Group functions appropriately and effectively according to the standards of the JRCC Responsible Care Codes, we commissioned the Responsible Care Verification Center, an independent inspection body established by the JRCC, to examine our operations from March to April 2002.

Measures implemented for environmental preservation, operational safety, chemical product safety, workplace safety and hygiene, and physical distribution safety, as well as the overall Responsible Care management system, were examined. Results received in a Responsible Care Verification Opinion Statement and Responsible Care Verification Report are being utilized as a guide to further enhance our Responsible Care program.

In addition to the Responsible Care Reports for the Asahi Kasei Group prepared and published annually, several regional Offices are also publishing Responsible Care Reports. Offices which published regional Responsible Care Reports for fiscal 2001 are listed below.


Kawasaki

Moriyama

Fuji

Mizushima

General Management Dept. +81-44-271-2021

Safety & Environment Dept. +81-77-581-4081



Inspection for Responsible Care verification.

Responsible Care Verification Opinion Statement.

Regional Responsible Care Reports.

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Responsible Care

ESH MilestonesThe Asahi Kasei Group has constantly adapted and modified its ESH and Responsible Care programs in accordance with current public

expectations and demands. Notable milestones are shown below.

Milestones in the Asahi Kasei Group19671970

197119721973

1976

1980

1981

1982

1987

1988

1989

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

Public Trends and Developments

Establishment of Asahi Kasei Group organizations for safety and environmental management.

• Establishment of the corporate-level Safety and Environmental Department.

• Establishment of Environment and Safety Departments at each administrative and production center.

• Enactment of the Environment and Safety Management Regulations as corporate-wide rules.

Establishment of the Corporate Environment and Safety Committee.

Establishment of the Environment, Safety and Health Administration, replacing the Safety and Environmental Department.

Establishment of the basic corporate policy for operational safety.Establishment of the Product Safety Department within the Environment,

Safety and Health Administration. Initiation of the first three-year program for safety and environmental

protection.

First annual Asahi Kasei Group Environment and Safety Symposium.Certification for independent safety management of high-pressure gas plant

at Mizushima.Certification for independent safety management of high-pressure gas plant

at Kawasaki.Awarded the Japan Industrial Safety and Health Association prize.Publication of the first Environment Report.Establishment of the basic corporate policy for environmental preservation.Acquisition of ISO 9000 series certification of quality management systems

begins.

Establishment of the corporate-level Quality Assurance and Product Safety Department.

Establishment of Quality Assurance Departments at each administrative and production center.

Enactment of corporate regulations for product safety management.Establishment of the basic corporate policy for product safety. Became a founding member of the Japan Responsible Care Council upon

its establishment. Enactment of corporate regulations for Responsible Care management.Integration of environmental preservation, operational safety, and product

safety efforts in the corporate Responsible Care initiative.Confirmed commitment to give precedence to environmental preservation,

operational safety, and product safety as an underlying operational policy. Acquisition of ISO 14001 certification of environmental management

systems begins.Publication of the first annual Responsible Care Report.Initiation of the sixth 3-year program for Responsible Care activities.

Establishment of the Environment, Safety & Production Technology Administration integrating the Environment, Safety and Health Administration, Quality Assurance and Product Safety Department, and Production Technology Administration.

Revision of basic corporate policies for environmental preservation, product

safety, and operational safety. Adoption of internal company business unit configuration.

Enactment of the Basic Law for Environmental Pollution.Antipollution measure session of the Diet.• Enactment of environment-related laws.• Revision of the Basic Law for Environmental Pollution.

Establishment of the Environment Agency.Enactment of the Law on Industrial Safety and HygieneOccurrence of several fires and explosions at petrochemical

complexes.Enactment of the Law on the Prevention of Disasters in

Petroleum Industrial Complexes and Other Petroleum Facilities.

Adoption of the Montreal Protocol on Substances That Deplete the Ozone Layer.

Revision of the Fire Laws (clarification of definitions of dangerous objects).

The United Nations Conference on Environment and Development in Rio de Janeiro.

Enactment of the Basic Environment Law.

Establishment of the Japan Responsible Care Council (JRCC).The 1st United Nations Framework Convention on Climate

Change in Berlin, Germany.The Hanshin earthquake.

The 3rd United Nations Framework Convention on Climate Change in Kyoto, Japan.

Promulgation of the High Pressure Gas Safety Law.Enactment of the Law concerning the Promotion of the Measures

to Cope with Global Warming.Enactment of the Law Concerning the Reporting of the Release

into the Environment of Specific Chemical Substances and Promoting Improvements in Their Management (“PRTR Law”).

Enactment of the Law concerning Special Measures against Dioxins.

Enactment of the Basic Law for Establishing a Recycling-based Society.

Enactment of the Law concerning the Recovery and Destruction of Fluorocarbons.

11


The main aspects of our operations which result in environmental burdens are shown in aggregate below.

The Asahi Kasei Group endeavors to continuously review and seek improvements in our efforts to secure environmental preservation and human health and safety in every aspect of all business activities of the Asahi Kasei Group.

Measures implemented with respect to global warming, energy conservation, PRTR, air pollution, water pollution, groundwater and soil contamination, and industrial waste are described below.

ISO 14001 certificationSites Date of certification Sites Date of certification

Kawasaki

Moriyama

Mizushima

Asahi Kasei Juko Co., Ltd., Shiga Plant

Asahi Kasei Metals Ltd., Tomobe Plant

Suzuka Plant

Ohito

Matsudo Plant

Fuji

Chiba Plant

Nobeoka

Shin Nihon Salt Co., Ltd.

1998. 8.28

1998.10.19

1998.12.25

1999. 3.26

1999.10.22

1999.10.25

1997. 4.21

1997.12.26

1998. 3. 6

1998. 3.31

1998. 5.18

1998. 8.21

ISO 14001 Certification

Environmental Burdens

While environmental protection has always been a key element of our Responsible Care initiative, we have adopted ISO 14001 standards for environmental management systems at sites throughout the Asahi Kasei Group to facilitate the reevaluation of the environmental effects of our operations advance the efficient and effective

implementation of measures to reduce the environmental burden. As shown in the table below, we have obtained ISO 14001 certification at plants in each of our main production facilities. In fiscal 2001, the scope of certification at Nobeoka was expanded to include the VDC Polymer Plant, Asahi Kasei Microsystems, and Asahi Kasei Electronics. Progress toward certification of additional sites is advancing.

INPUTS OUTPUTS

On-site recycling: 44,000 tonsOff-site recycling: 99,000 tons

Final disposal (landfill): 28,000 tons

Effluent volume: 350 million m3

COD of effluent: 2,200 tonsPRTR release: 170 tons

Effluentwater

Products

SOX: 7,500 tons NOX: 6,400 tonsSoot and dust: 310 tonsPriority atmospheric pollutants: 280 tonsGreenhouse gas emissions: 5.9 million tons (CO2 equivalent)

Atmosphencemissions

Solidwastes

Releaseto soil

Main environmental aspects (fiscal 2001 results)

820 million liters(crude oil equivalent)

340 million m3

Feed-stocks

Energy*

Water

AsahiKaseiGroupplants

* as defined in the Energy Conservation Law.

Asa

hi K

asei

Gro

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Res

pons

ible

Car

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ctiv

ities

of t

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sahi

Kas

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roup

Phy

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yan

d S

afe

Ope

ratio

nW

orkp

lace

Saf

ety,

Hyg

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, and

Hea

lthE

duca

tion

and

Trai

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Aw

ards

inR

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ES

H R

esul

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omm

unity

Out

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and

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Asa

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s

PRTR release: 2,300 tons

Env

ironm

enta

lP

rote

ctio

nP

rodu

ct S

afet

y

Effluent waste: 138,000tonsPRTR transfer: 2,000 tons

PRTR release: 0 tons

12

Responsible Care

Preventing Global Warming

CO2

SF6

PFC

HFC

N2O

CH4

14,000

12,000

10,000

8,000

6,000

4,000

2,000

01990 1995 1996 1997 1998 1999 2000 2001 2001 2002

• CO2 equivalent conversion in accordance with the Law concerning the Promotion of Measures to Cope with Global Warming.• Both actual results and original forecast for fiscal 2001 shown.

Note:

Framework Convention on Climate ChangeThe United Nations Framework Convention on Climate Change was adopted in 1995 with the objective of stabilizing the concentration of greenhouse gases in the atmosphere to prevent global warming. The Conference of the Parties (COP) to the convention is a regular meeting of signatory nations to promote smooth implementation of the accord. The “Kyoto Protocol” adopted at the Third Conference of the Parties (COP3) in December 1997 defines emission reduction targets for participating countries.

11,900 11,800

12,700 13,200

12,000

6,200

9,100

5,9006,700

6,100

Electricity sources (fiscal 2001)*

* For six main sites: Nobeoka, Mizushima, Fuji, Moriyama, Kawasaki, and Ohito.

Hydoroelectric plant.

Hydoroelectric11%

Purchased18%

Thermal71%

Clean Energy by HydroelectricGeneration

Reduction in GreenhouseGas Emissions

The Asahi Kasei Group has seven hydroelectric power generation plants. The clean energy generated at these plants supplies 11% of our energy needs.

Fiscal year(forecast)

6% reduction

Glo

bal w

arni

ng p

oten

tial

(thou

sand

s of

tons

CO

2 eq

uiva

lent

)

Greenhouse gas emissions

At the Third Conference of the Parties to the United Nations Framework Convention on Climate Change (COP3) held in Kyoto in December 1997, accord was reached regarding the reduction in emissions of 6 gases with the capacity to promote global warming. The 6 “greenhouse gases” targeted are carbon dioxide, dinitrogen monoxide, methane, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride. Efforts at the Asahi Kasei Group for prevention of global warming are as follows:

• Curtailment of carbon dioxide (CO2) emission from electricity and steam generation.

• Curtailment of emissions of greenhouse gases from production processes.

For fiscal 2001, greenhouse gas emissions (as converted to carbon dioxide equivalent) were reduced by 50% from the fiscal 1990 level, far exceeding Japan’s national target for greenhouse gas reduction of 6% from the fiscal 1990 level.

The reduction was achieved with equipment to thermally decompose dinitrogen monoxide (N2O) by-product at our adipic acid plant, which was brought on line in March 1999 to enable N2O emissions to be reduced by over 90%. Emissions of CO2 from electricity and steam generation in fiscal 2001 were maintained at the fiscal 1990 level.

13

100

90

80

70

60

501993　1994　1995　1996　1997　1998　1999　2000　2001

Fiscal year

Target

* In terms of kiloliters crude oil equivalent per tons product output, as converted to benchmark product.

Alleviating the EnvironmentalEffects of Product Distribution

Measures Related to Company-owned Vehicles and Commuting

Throughout the Asahi Kasei Group, efforts to reduce energy consumption and moderate the overall environmental effects of product distribution primarily comprise the following measures.

• Increasing sales lot sizes to reduce the number of shipments.

• Implementing product swaps with other producers for commodity products with common quality standards, to shorten shipping distances.

• Changeover from shipment by road to shipment rail and coastal sea lanes.

Energy Conservation

The Asahi Kasei Group owns about 2000 vehicles for use in marketing activities and within plant grounds. At present, about 5% of these, primarily forklifts and other vehicles used within plant grounds, are either natural gas or electric powered low-emission vehicles. We are increasing the number of low-emission vehicles through a phased transition when older vehicles need to be replaced.

We are also encouraging employees who commute to work by car to use public transportation instead. Where public transportation is impractical or unavailable, we are encouraging drivers to “stop idling” to reduce fuel consumption.


For maximum effective utilization of limited natural resources, the Asahi Kasei Group constantly strives to increase efficiency and thoroughly conserve resources and energy.

Since fiscal 1993, we have had a target of 1% average annual reduction in unit energy consumption, as required by the Law Concerning the Rational Use of Energy (known generally as the “Energy Conservation Law”). Measures to

conserve energy include production process innovations, thorough recovery of steam, control of energy losses, and installation of inverters to control electric motors. As shown below, the results have surpassed the target each year.

Asa

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Car

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of t

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Asa

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Inde

x (fi

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199

3=10

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Unit energy consumption*

Env

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afet

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Under the PRTR Law, releases to the atmosphere and off-site transfers of specific hazardous chemical substances must be monitored and recorded for each production facility and operating site. Results are reported to the government which publishes aggregate results.

Pollutant Release and Transfer Register

14

Responsible Care

In concert with Responsible Care, the Japanese chemical industry, centered on the Japan Chemical Industry Association, has since 1995 implemented a voluntary program for Pollutant Release and Transfer Register (PRTR). Efforts have been made to reduce release and transfer, and results have been reported each year. In April 2001, the PRTR Law came into effect, with mandatory reporting.

In fiscal 2001, 103 applicable substances were handled in the Asahi Kasei Group, with 2300 tons released to the atmosphere, 170 tons released to water, no release to soil, and 2000 tons transferred as components of waste. Principal releases (of ten tons or more) and transfers are shown below.

PRTR

SubstanceSiteAtmosphere Water

Releases to:

Soil

Totalrelease Transfers

Principal releases and transfers for fiscal 2001 (tons/year)

Carbon disulfide 630 2 0 632 0

Aqueous zinc compounds 0 51 0 51 38

1,1-Dichloroethylene 29 0 0 29 1

Ethylene glycol 0 21 0 21 153

Tetraflouroethylene 17 0 0 17 0

Trichlorotrifluoroethane 15 1 0 16 0

Hydrogen fluoride and its aqueous salts 0 16 0 16 2

Dichloropentafluoropropane 15 0 0 15 4

Vinyl chloride 14 0 0 14 0

N,N-dimethylformamide 0 14 0 14 0

Toluene 9 2 0 11 103

Styrene 30 1 0 31 94

Acrylonitrile 8 6 0 14 21

Molybdenum and its compounds 0 10 0 10 0

Dichloromethane 40 0 0 40 2

Tetrachloroethylene 49 0 0 49 2

Acrylonitrile 30 0 0 30 0

1,3,5-Trimethylbenzene 24 0 0 24 1

Xylene 21 0 0 21 4


Methyl acrylate 41 2 0 43 4

Methyl methacrylate 46 1 0 47 61

1-Chloro-1,1-difluoroethane 450 0 0 450 0

Chloroethane 330 0 0 330 0

1,3,5-Trimethylbenzene 216 0 0 216 6


Xylene 62 0 0 62 0

Nobeoka

Mizushima

Moriyama

Fuji

Ohito

Kawasaki

Othersites

PRTR

15

Reduction of HazardousAtmospheric Pollutants

Preventing Air Pollution

1995 1996 1997 1998 1999 2000 2001 2001 2002 2003

Japan’s Air Pollution Control Law defines hazardous atmospheric pollutants as substances which, as sources of atmospheric pollution, are believed to damage human health in case of continuous exposure. The Central Environment Council has prepared a list of substances, and specified 22 substances for priority action based on evidence of a high level health risk. The Air Pollution Control Law also requires corporations to curtail and control atmospheric release of hazardous atmospheric pollutants on their own initiative. The following 12 substances have been identified for control due to the large amounts of their production and importation, relatively well established understanding of their behavior in the atmosphere, and recognition of their long-term toxicity: Acrylonitrile, acetaldehyde, vinyl chloride monomer, chloroform, 1,2-dichloroethane, dichloromethane, tetrachloroethylene, trichloroethylene, 1,3-butadiene, benzene, formaldehyde, and sulfides and sulfates of nickel. The Japan Chemical Industry Association recommends substitution of ethylene oxide in this list in place of sulfides and sulfates of nickel, as member companies only handle the latter in nominal amounts.

1995 1996 1997 1998 1999 2000 2001 2001 2002 2003 1995 1996 1997 1998 1999 2000 2001 2001 2002 2003

1995 1996 1997 1998 1999 2000 2001 2001 2002 2003

(forecast)

(forecast)

(forecast)

Hazardous Atmospheric Pollutants


The Asahi Kasei Group implemented a voluntary program to achieve a 30% reduction from the fiscal 1995 level of hazardous atmospheric pollutant release by fiscal 1999. This target was exceeded, and a 45% reduction was achieved for fiscal 1999. We then set a new target for 70% reduction from the fiscal 1999 level by fiscal 2003, and we are well on the way to meeting this target,

achieving a 60% reduction in fiscal 2001.Notable measures implemented to achieve this

reduction include reducing the relative gas composition of dichloromethane used as a foaming agent component, and increasing the capacity of equipment for the recovery of tetrachloroethylene.

1,300

540

420

160 160

150

120

94 92

48

79 73 70

370 370

83

26 15 10 9 9 8

570

495 490 480

340

140 150

8056

1,300

1,200

880

730

540

280 310230

200

Formaldehyde

Benzene

1,3-Butadiene

Ethylene oxide

Trichloethylene

Tetrachloroethylene

1,2-Dichloroethane

Dichloromethane

Chloroform

Vinyl chloride monomer

Acetaldehyde

Acrylonitrile

Release of dichloromethane

Release of priority atmospheric pollutants Release of tetrachloroethylene

Release of 1,3-butadieneFiscal year

Fiscal year

Fiscal year

1,400

1,200

1,000

800

600

400

200

0

Rel

ease

(ton

s/ye

ar)

Fiscal year

Rel

ease

(ton

s/ye

ar)

600

500

400

300

200

100

0

Rel

ease

(ton

s/ye

ar)

200

150

100

50

0

Rel

ease

(ton

s/ye

ar)

600

500

400

300

200

100

0

(forecast)

Asa

hi K

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Res

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Car

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16

Responsible Care

Fiscal year

Fiscal year

Fiscal year

Fiscal year

Fiscal year

Fiscal yearFiscal year

Fiscal year

Rel

ease

(ton

s/ye

ar)

Rel

ease

(ton

s/ye

ar)

Rel

ease

(ton

s/ye

ar)

Release of chloroform

Fiscal year

(forecast) (forecast)

(forecast)

(forecast)

(forecast)

(forecast)

(forecast)(estimated)

(forecast)

(forecast)

no data

110

12

6

2

0.3 0.3 0.3 0.2 0.3 0.2 0.2 0.2 0.2 0.2

56

2 2 2 2 2 22

5 5 5 4 45

4 3 3

910

96 6 6 6 6

3

110 100

110

84

51

40 45 38 36

60

10 9 98

6 6

10

4

74 4 4 3 4

1 1 1

6

3 3 3 21

6 6 5

53

6361

2321

149 9 8

Oita

Suzuka

Kawasaki

Ohito

Fuji

Moriyama

Mizushima

Nobeoka

Other sites

50

40

30

20

10

0

200

150

100

50

0

50

40

30

20

10

0

50

40

30

20

10

0

100

80

60

40

20

0

Release of acrylonitrile

Relese of 1,2-dichloroethane

Release of formaldehyde

Release of benzene

Release of vinyl chloride

Release of trichloroethylene

Relese of acetaldehydeRelease of ethyene oxide

Rel

ease

(ton

s/ye

ar)

Rel

ease

(ton

s/ye

ar)

Rel

ease

(ton

s/ye

ar)

Rel

ease

(ton

s/ye

ar)

Rel

ease

(ton

s/ye

ar)

Rel

ease

(ton

s/ye

ar)

50

40

30

20

10

0

1995 1996 1997 1998 1999 2000 2001 2001 2002 2003 1995 1996 1997 1998 1999 2000 2001 2001 2002 2003

1995 1996 1997 1998 1999 2000 2001 2001 2002 2003 1995 1996 1997 1998 1999 2000 2001 2001 2002 2003

1995 1996 1997 1998 1999 2000 2001 2001 2002 2003 1995 1996 1997 1998 1999 2000 2001 2001 2002 2003

1995 1996 1997 1998 1999 2000 2001 2001 2002 2003

1995 1996 1997 1998 1999 2000 2001 2001 2002 2003

1995 1996 1997 1998 1999 2000 2001 2001 2002 2003

50

40

30

20

10

0

50

40

30

20

10

0

50

40

30

20

10

0

12,000

10,000

8,000

6,000

4,000

2,000

0

Total NOX emissions

Fiscal year

17

SOX, NOX, Soot and Dust

1995 1996 1997 1998 1999 2000 2001

1995 1996 1997 1998 1999 2000 2001

1995 1996 1997 1998 1999 2000 2001

50,000

40,000

30,000

20,000

10,000

0

Total SOX emissions

Em

issi

on (t

ons/

year

)

Fiscal year

Permissible level*

6,000

5,000

4,000

3,000

2,000

1,000

0

Total soot and dust emissions

Em

issi

on (t

ons/

year

)

Fiscal year

Sulfur oxides (SOX) are the most stringently regulated air pollutant in Japan. The Asahi Kasei Group has reduced SOX emissions through installation of flue gas desulfurization apparatus, use of low-sulfur fuel oil, use of low-sulfur by-product fuel from ethylene production, and changeover from fuel oil to LNG (liquefied natural gas). As a result of such measures, total SOX emissions in fiscal 1993 were reduced to 30% of the fiscal 1976 level.

Measures to suppress emissions of nitrogen oxides (NOX) include installation of apparatus for their removal from flue gas and improvements to the combustion process by using burners which reduce NOX formation. Suppression of soot and dust emissions has been achieved through the installation of electric dust collectors for their removal from flue gas and the effects of changeover to cleaner burning fuels.

Emissions have been consistently maintained well below regulatory limits, meeting the stringent standards set in accords with local authorities and voluntary corporate targets for emission control.


Em

issi

on (t

ons/

year

)

Sulfur oxides are formed when crude oil, fuel oil, or coal containing sulfur are used as fuel, or when industrial wastes containing sulfur are incinerated. Sulfur dioxide (SO2) is most common, but some sulfur trioxide (SO3) also forms. The term SOX is inclusive of both of these.

Sulfur oxides (SOX)

Nitrogen oxides are formed in nature and during combustion at thermal power plants, factory boilers, internal combustion engines, and incinerators. The term NOX is inclusive of both nitric oxide (NO) nitrogen dioxide (NO2).

Nitrogen oxides (NOX)

11,700

6,000

420 450 400 370 330 300 260

5,800 6,100 6,200 6,3006,800

6,400

10,4009,200

8,400 8,600 8,500 7,500

* 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 year with fluctuations in production volumes.

Permissible level*

Permissible level*

Oita

Suzuka

Kawasaki

Ohito

Fuji

Moriyama

Mizushima

Nobeoka

Other sites

Asa

hi K

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18

Responsible Care

Measures implemented throughout the Asahi Kasei Group have resulted in a significant reduction in the amount of pollutants in effluent water. As shown at right, chemical oxygen demand (COD) of effluent - which indicates the level of pollution - has been maintained well below permissible levels at all sites in terms of both COD loads and total COD.

During fiscal 2001, an operational error resulted in an abnormally large release of sodium hypochlorite into effluent waste water which flowed into a river, killing about 30 fish. Following this incident, urgent instructions mandating thorough control of effluent water were sent to all Asahi Kasei Group facilities to eliminate the recurrence of any such release.

* 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 production volumes.

Preventing Water Pollution

Chemical oxygen demand is an indicator of water pollution by organic matter. COD is expressed in terms of the amount of oxygen required to chemically oxidize the organic matter contained in the water by an oxidizer.

1995 1996 1997 1998 1999 2000 2001

500

400

300

200

100

0

Total effluent water volume

CO

D (m

illion

m3 /

year

)

Fiscal year

1995 1996 1997 1998 1999 2000 2001

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

Total COD of effluent

Effl

uenc

e (m

illion

m3 /

year

)

Fiscal year

As described in our previous reports, groundwater samples taken in fiscal 1998 near the boundary of the plant grounds at two sites in Nobeoka exceeded the permissible contamination level for chlorinated hydrocarbons. The cause of this contamination was determined to be by-product and residue containing chlorinated hydrocarbons which had been disposed of underground prior to their being designated as hazardous substances.

To the extent possible, soil in the vicinity of the buried wastes was immediately removed, and an ongoing program to draw the affected groundwater for purification by treatment with activated charcoal was begun. In addition, new purification methods are being examined, and implemented on a trial basis.

Groundwater and Soil Contamination

Chemical oxygen demand

(COD)

2,200

350 360 350340 340

360 350

2,2002,000 2,000 2,000 2,000 2,100

Permissible level*

Oita

Suzuka

Kawasaki

Ohito

Fuji

Moriyama

Mizushima

Nobeoka

Other

19


Reduction of Off-siteFinal Disposal Volume

Reduction of Industrial WasteIn addition to reducing the amount of waste generation, efforts are also focused on recycling and other measures to reduce the amount of waste for final disposal. Loads of industrial waste for off-site treatment and disposal are recorded and managed using manifests, and our personnel periodically observe the operations of outside firms consigned to treat and dispose of waste.

As the shortage of landfill sites in Japan has become increasingly serious, reduction of waste disposal volumes has become an urgent problem in recent years. In fiscal 2001, recycling-related efforts were heightened nation-wide as laws associated with the Basic Law for Establishing a Recycling-based Society including the Electric Household Appliance Recycling Law and the Law for Promotion of Effective Utilization of Resources came into effect.

The volume of waste generated at the Asahi Kasei Group is minimized through processes optimization, and useful substances are recovered for reuse or recycling as feedstock or material for other production processes. As shown in the graph below, the volume of industrial waste transferred off site for final disposal was reduced by approximately three-fourths between fiscal 1993 and fiscal 1999.

The Asahi Kasei Group has set the reduction of waste emission to zero by 2010 as a stretch

target. Each internal company business unit and regional Office has prepared goals and plans toward this objective, and progress began in fiscal 2001.

For fiscal 2001, off-site final disposal waste volume nevertheless increased from the previous year. This was due to a number of one-time items including plant closure, new plant construction, and disposal of obsolete incinerators which could not be made compliant with emerging emissions standards for dioxins.

Achieving a final landfill disposal volume of zero involves measures to minimize the amount of waste generated, and reusing or recycling as feedstock or material for other industrial processes.

Zero emission of wastes

*Not including wastes generated from dismantling old homes when constructing new homes sold by Asahi Kasei Group housing operations.

1993 1994 1995 1996 1997 1998 1999 2000 2001

120

100

80

60

40

20

Off-site final disposal waste volume

Vol

ume

(thou

sand

s of

tons

)

Fiscal year

102 102

90

6862

49

27 27 28

Off-site final disposal waste, by category (fiscal 2001)

Sludge38%

Others8%

Constructiondebris

4%

Plastic waste28%

Glass, ceramics

22%

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20

Recycling

Responsible Care

Throughout the Asahi Kasei Group, the amount of waste for disposal has been reduced by effective utilization of resources through reuse and recycling of wastes. For example, sludge and coal ash is recycled as feedstock for cement. Recycling efforts for construction material wastes and for chemical recycling of PET bottles are described below.

Recycling of construction material wastesWastes handled by our Housing internal company business unit include trimmings and packing materials from new construction, and waste generated from the dismantling of old homes to be replaced. In each case, wastes are thoroughly separated by material to facilitate recycling and reduction of final disposal amounts.

Reduction of industrial waste generated in new constructionGeneration of waste is reduced by precutting materials and modular preassembly at the factory,

and minimizing use of packing materials. Wastes which are generated at the building site are separated and collected by material to facilitate recycling. Supply agreements have been concluded with plasterboard makers and other construction materials manufacturers which can effectively utilize these wastes as feedstock materials. As a result of measures implemented thus far, wastes for final disposal were reduced from 19,000 tons in fiscal 2000 to 12,000 tons in fiscal 2001.

Reduction of waste from dismantling of old homesIn advance of the May 2000 Construction Material Recycling Act coming into effect, we have begun implementing dismantling of old homes and separating wastes by material to facilitate recycling. As with waste from new construction, we have concluded agreements with construction materials manufacturers for the effective utilization of these wastes. Waste for final disposal was reduced from 30,000 tons in fiscal 2000 to 18,000 tons in fiscal 2001.

Waste treatment and disposal (fiscal 2001)

On-site treatment Off-site treatment

(thousands of tons)

Effluent wasteWaste generated

365（100%）

44（12%） 183（50%） 99（27%） 11（3%）

0 28（8%）

138（38％）

Recycling Recycling

Landfill Final disposal

Volume reduction(incineration, dehydration)

Volume reduction(incineration,dehydration)

21

Investments for ESH, Environmental Accounting

ESH-related Investments

En

70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00

140

120

100

80

60

40

20

0

14

12

10

8

6

4

2

0

Billi

ons

of y

en

Billi

ons

of y

en

Investment in environmental and safety modification

Fiscal year

Environmental protection and safety measures have long been an important priority in the investment of management resources at the Asahi Kasei Group. A record of investments in plant and equipment modifications related to environmental

and safety measures began in 1970, when the Safety and Environmental Department (presently the Environment, Safety & Production Technology Administration) was established. As shown in the figure below, these investments averaged approximately ¥4 billion per year. Figures do not include the portion of investment in new plant and equipment related to environment and safety, or investment related to energy conservation.


We havEnvironmGuidelineAccountinthe Envimplemenfiscal 20performeChemicalHome PclassificatEnvironmincrementbased on

EnvironmPlasticsPollution costs repChemicalcategorieexpensesand watecost incluwaste anindustrialdevelopmdevelopmand of tecsolvent cmitigate pollutantsprocessereduce Environmimposed Damage C

Economon sale decrease reductionexpenseseffects inchazardoutetrachlorair and wNOX emispermissib

Chemical recycling of PET bottlesChemical recycling technology has long been used to recover polyester feedstocks from waste fiber generated in the polyester filament plant of our Fibers & Textiles internal company business unit. Development of a large-scale process to recover polyester feedstocks from post-consumer PET bottles was completed in fiscal 2000. This outstanding new process enables the recovery of feedstocks of purity equivalent to that of feedstocks derived from the conventional polyester route. Further, reaction residue can be used as fuel in electricity generation and as a cement feedstock, enabling operation with no wastes for

disposal. A plant with a capacity of 3000 tons/year - equivalent to 100 million 500 mL PET bottles - has been completed, with post-consumer bottles for recycling to be obtained from local government bodies and private-sector firms in Nobeoka and surrounding areas. In fiscal 2001, 200 tons or about 6 million 500 mL PET bottles were recycled, and operation is growing. Polyester filament made from recycled PET bottles is being marketed as EcosensorTM, and sales are expanding.

PET chips fromused beverage bottles.

Recycled feedstocks. Apparel made fromrecycled polyester.

Chemical recyclingplant.

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Per year(right-hand scale)

22

Responsible Care

Environmental AccountingChamical and Plastics environmental accounting

Fabricated Home Products environmental accounting

We have prepared Asahi Kasei Group Environmental Accounting Guidelines following the Guidelines for Adoption of Environmental Accounting Systems published by the Ministry of the Environment in May 2000. Trial implementation of environmental accounting for fiscal 2001 based on these guidelines was performed at two internal companies, the Chemicals and Plastics Company and Fabricated Home Products Company. Results of cost classification through this trial are shown below. Environmental accounting will be expanded incrementally throughout the Asahi Kasei Group based on the results of these trials.

Environmental accounting at Chemicals and PlasticsPollution prevention and the related management costs represented a large portion of the cost for Chemicals and Plastics in fiscal 2001. These categories included operating and management expenses for processing facilities to prevent air and water contamination. Resource circulation cost included expenses for processing industrial waste and for measures to reduce the amount of industrial waste generated. Research and development cost included expenses for development of environment-friendly products, and of technologies for recycling waste plastic, for solvent changeover and other modifications to mitigate the release of hazardous atmospheric pollutants, to conserve energy in production processes, for resource conservation, and to reduce the amount of waste generated. Environmental damage cost was an assessment imposed pursuant to the Pollution-related Health Damage Compensation Law.

Economic benefits included a ¥7.3 million gain on sale of valuable material, a ¥1.3 million decrease in waste processing costs due to the reduction in waste, and a ¥85.0 million decrease in expenses due to energy conservation. Material effects included a 60% decrease in the release of hazardous atmospheric pollutants such as tetrachloroethylene compared to fiscal 1999. All air and water quality standards, including SOX and NOX emissions were maintained well within the permissible range.

Environmental accounting at Fabricated Home ProductsThe most substantial costs for Fabricated Home Products in fiscal 2001 were for pollution prevention, including maintenance and control expenses for anti-pollution equipment and investments in equipment to curtail the release of hazardous atmospheric pollutants, and for measures to reduce emission of wastes to zero, shown in the table as resource circulation cost. Research and development cost was for technologies for solvent changeover and biodegradable film. Upstream and downstream cost was the cost to recycle Saran WrapTM packaging into new products in accordance with the Container and Packaging Recycling Law. Community outreach cost was mainly for gardening in plant grounds, and environmental damage cost was mainly for purification of contaminated groundwater.

Material effects included a 65% decrease in the release of hazardous atmospheric pollutants such as dichloromethane compared to fiscal 2000.

(Millions of yen)

Investment Expense

Combined operating area cost

　　Pollution prevention cost

　　Global environmental protection cost

　　Resource circulation cost

Upstream and downstream cost

Management cost

Research and development cost

Community outreach cost

Environmental damage cost

Total

400

290

20

90

0

10

40

0

0

450

3,020

2,220

100

710

20

680

530

70

150

4,480

com

pris

ing:

(Millions of yen)

Investment Expense

Combined operating area cost

　　Pollution prevention cost

　　Global environmental protection cost

　　Resource circulation cost

Upstream and downstream cost

Management cost

Research and development cost

Community outreach cost

Environmental damage cost

Total

410

50

0

360

0

0

0

10

0

420

590

170

20

400

10

100

330

30

10

1,070

com

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ing:

Data sheets containing information related to the safety of chemical products, MSDSs for each product are provided by the supplier to all firms involved in use and handling to prevent accidents involving the product.

Material safety data sheet (MSDS)This is the quantitative evaluation of the effects on

health and the environment. The evaluation and estimation of whether or not chemical substances in the environment have effects on human health or the environment comprises four processes: Hazard identification, characterization of the relationship between doses of chemical substances and the severity of adverse health effects, exposure assessment, and risk characterization. In this sense, “risk” means a combination of the probability and severity of injury or health damage occurring.

Risk assessment

Product Safety

23

Product Safety Organization

Group-wide Product Safety System

Implementation ofProduct Safety Activities

Securing Product Safetyfor the Customer

Each internal company business unit holds responsibility to implement and maintain the basic corporate policy and activities for the control of its own product quality and safety, as appropriate to the needs and requirements of its product sector, while the General Manager of the Environment, Safety & Production Technology Administration and the Quality Assurance & Product Safety Department promote and coordinate the implementation of product safety activities in accord with this policy throughout the corporation.

Each internal company business unit prepares specific product safety plans and targets to be implemented through a plan-do-check-act cycle in accordance with corporate regulations, guidelines, and standards for product safety, which are based on the Asahi Kasei Responsible Care Principles and Responsible Care Guidelines.

Results of implementation are audited by the General Manager of the Environment, Safety & Production Technology Administration and reported to the Responsible Care Committee. Corporate regulations, guidelines, and standards for product safety are then revised to reflect these results.

Each internal company business unit implements product safety activities following its plans, targets and policies. Results of implementation are audited and a plan-do-check-act cycle is applied based on their operations.

Risk assessments concerning human safety and health and the effects on the environment are performed for individual products, and product safety is ensured by applying the results of these assessments. Whenever there is a change in a product, the results of risk assessments are reviewed to ensure against any omission.

In addition to ensuring the safety of products themselves, product safety information is provided to customers in the form of instructions for product handling and use and material safety data sheets as part of the effort to secure safety throughout the product life cycle from use to disposal.

As an integral part of our Responsible Care initiative, implementation of the product safety effort is based in the Responsible Care organization. In accordance, the corporate

organization and managerial activities focus all day-to-day operations on the achievement and maintenance of product safety.

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Responsible Care

Managing Chemical Substances

Collecting Safety Information forEach Chemical Substance

Knowledge of All ChemicalSubstances Handled

Providing Safety Informationto Relevant Parties

A comprehensive listing of all chemical substances handled in the Asahi Kasei Group as feedstocks, intermediates, products, and process materials has been prepared. The list includes relevant regulations in Japan and other countries, hazard information, and premissible concentrations in the workplace environment. The list is utilized in the daily ESH effort of each internal company business unit. Each year, specialist staff update and revise the list to ensure that information regarding the chemical substances handled, relevant regulations, and hazards are kept up-to-date.

Safety information for each chemical substance handled, including physical and chemical properties, effects on humans, and effects on the environment, is collected by surveying literature and reports available in Japan and worldwide. Where the available information is insufficient, tests are planned and performed to obtain the necessary supplemental information.

Safety information for chemical substances and chemical products are provided to employees, customers, physical distribution firms, and other related members of the public in the form of MSDSs, Yellow Cards (Transport Emergency Cards), technical manuals, and product brochures. All safety information whose provision to customers and other relevant parties is required by law is provided in MSDSs. MSDSs are being reformatted in accordance with the revised recommendations of the Japan Chemical Industry Association, with the changeover scheduled for completion during fiscal 2002.

Corporate regulations for productsafety management.

An MSDS.

25

The ICCA HPV Initiative

The LRI Initiative

International Efforts for Chemical Safety

High Production Volume (HPV)Chemical Initiative

Through our membership in the Japan Chemical Industry Association (JCIA), the Asahi Kasei Group is an active participant in voluntary international

research efforts to advance the safe management of chemical substances.

The Asahi Kasei Group began participation in the International Council of Chemical Associations

(ICCA) HPV Initiative in fiscal 1999, with regard to ten chemical substances.

An international consortium has been established to perform the evaluation work of the HPV initiative, through the close cooperation of participating companies throughout the world.

Long-range Research Initiative (LRI)Through our membership in the Japan Chemical Industry Association (JCIA), the Asahi Kasei Group is an active participant in the LRI. We have been a member of the LRI since its initial stage, and have contributed to the establishment of research

systems, administration, planning specific research projects, and selection of research subjects. We continue to take a leading role in the advancement of LRI worldwide, including participation in international conferences and discussions with researchers at overseas universities.

Product Safety

In 1990, the Organization for Economic Cooperation & Development (OECD) began promoting the gathering of safety data for HPV chemicals (1000 tons/year or more produced in one or more countries) for which existing safety data is inadequate to enable their risk assessment and determination of the need for their control. However, as over 4000

chemical substances were subject to evaluation, progress was slow to obtain: By the end of 1999 the evaluation of only 150 substances was completed, with another 250 in progress.

Realizing the inadequate state of progress, in 1998 the ICCA determined to bring the efforts and resources of the world chemical industry to bear in advancing the

HPV Initiative in concert with the OECD. The ICCA designated the completion of evaluation of all substances produced in volumes of 1000 tons/year or more in two or more countries by 2004 as a target. Work is now in progress coordinated by the chemical industry associations of Japan, the US, and the EU.

The LRI is a long-term research program to increase scientific knowledge regarding the effects of chemical substances on health and the environment, carried out by the chemical industry associations of Japan, the US, and Europe to promote the safe handling and use of chemical substances. LRI involves research on a scale and depth that is beyond the capabilities of corporations working individually. The results of the LRI will be used to assist public policy decision-making, and are also expected to make a valuable contribution to the enhancement of Responsible Care.

The JCIA is actively supporting LRI, and research work began in fiscal 2000.

Because LRI relies on corporate-directed research, there is strong public concern that the administration of the initiative be impartial, that the subjects of research be proper and valid, that the research process be transparent, and that the results be completely open. To ensure impartiality, a peer-review committee composed of researchers who have no conflict of interest with the chemical industry has been established, and the scope of activity of corporations participating in LRI

has been limited to eliminate the possibility of bias.

The actual research is carried out on consignment by independent research institutions. With the exception of work consigned supplementally to research already in progress, subjects of research are adopted after broad canvassing and rigid screening, including by the researchers of the peer-review committee. In fiscal 2002, the JCIA is advancing research in four fields: Endocrine disrupter, chemical carcinogenesis, hypersensitivity, and neurotoxicity.

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Adoption of ISO 9000 Series Systems Compliance with ISO 9000:2000

Responsible Care

The Asahi Kasei Group was one of the earliest in the chemical industry to obtain ISO 9000 series certification for its quality management systems. During 1993 and 1994, we obtained ISO 9002 certification for our production sites in Mizushima, Nobeoka, Kawasaki, Fuji, Moriyama, and Suzuka. Subsequently, to further enhance our quality management, ISO-compliant systems were adopted for product design, development, marketing, and physical distribution functions. Beginning in 1996, we began a transition of the scope of certification to internal company and divisional business units, and nearly all products are now certified under ISO 9001 by business unit. These quality management systems have also been valuable in the systematic review of a variety of activities related to product safety.

As a result of the transition to internal company and divisional business unit-scope certification, the Asahi Kasei Group was already substantially in compliance with the ISO 9000:2000 standards when they were published. We nevertheless prepared corporate guidelines for compliance with the 2000 revision in order to further heighten the efficiency and effectiveness of our quality management systems. In fiscal 2001, Fabricated Home Products became the second internal company business unit to attain compliance with ISO 9000:2000, following Fibers and Textiles in fiscal 2000. Revision of quality management systems throughout other internal companies is advancing toward compliance throughout the Asahi Kasei Group.

ISO 9000 Series Certification

Registered entity Date of initial reg. Registration No.

ISO 9000 series certification

Internal companybusiness units

Divisions

Plants

Chemicals & Plastics Company

Performance Plastics & Compounds Company

Fabricated Home Products Company

Fibers & Textiles Company

Industrial Membranes Div.

Electronics Materials Div.

Imaging Products Div.

Ion Exchange Membranes Div.

Metal Cladding, Explosives Div.

Industrial Explosives, Explosives Div.

Fastening Products, Explosives Div.

Defense Explosives, Explosives Div.

Tohmi Plant, Huga Chemicals Plant, others (Nobeoka Office)

Production Control Dept., Construction Materials Works

Wakayama Plant

Asahi Kasei Microsystems Co., Ltd.

Asahi Kasei Color Tech Co., Ltd.

Asahi Kasei Techno Plus Co., Ltd.


System Integration Div., Asahi Kasei Jyoho System Co., Ltd.

Asahi Kasei Finechem Co., Ltd.

Mizushima Plant, Asahi Kasei Epoxy Co., Ltd.

Oita Plant, Asahi Medical Co., Ltd.

Nobeoka Plant, Asahi Medical Co., Ltd.

Moriyama Plant, Asahi-Schwebel Co., Ltd.

Tomobe Plant, Asahi Kasei Metals Ltd.

Nobeoka Plant, Asahi Kasei Electronics Co., Ltd.

Mizushima Plant, Sanyo Petrochemical Co., Ltd.

November 11, 1993

November 11, 1993

December 15, 1993

July 8, 1994

February 21, 1994

April 7, 1995

April 7, 1995

March 31, 1997

August 1, 1998

October 23, 1998

March 12, 1999

September 27, 1999

August 7, 1998

April 24, 1998

August 21, 1998

June 9, 1995

January 12, 1998

August 5, 1998

October 5, 1998

September 23, 1999

December 28, 1999

January 10, 1994

November 10, 1994

November 14, 1995

October 20, 1995

April 22, 1996

June 7, 1996

January 9, 1998

ISO9001-JQA0374

ISO9001-JQA3013

ISO9001-JQA0344

ISO9001-JQA0549

ISO9001-JQAQM4618

ISO9001-JQAQM3841

ISO9001-JQAQM5364

ISO9001-JQA1668

ISO9001-98QR120

ISO9001-JQA2717

ISO9001-JQA3154

ISO9001-BSK0041

ISO9002-JQA0350

ISO9001-JQA2308

ISO9001-JQA2587

ISO9001-JQA0899

ISO9001-JCQA0278

ISO9001-SGS/J51/98

ISO9001-JCQA0376

ISO9001-JQAQM3579

ISO9001-JQAQM4180

ISO9001-JQA0369

ISO9001-BSI

ISO9001-BSIFM32751

ISO9001-JQA1006

ISO9001-JCQA0133

ISO9002-JQA1301

ISO9001-JQA0305

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 each entity registered.

Companies or Divisions

PlantsSub

sidi

arie

s an

d af

filia

tes


27

Responsible Care at the Asahi Kasei Group encompasses measures to prevent plant and equipment accidents. These measures include making safety a primary consideration both in the planning, design, installation, and control of plant and equipment, and in training to ensure safe operation and proper response in the event of any abnormality.

Despite these efforts, a serious fire occurred at our Leona Plant in Nobeoka on March 12, 2002. Our examination of this incident has yielded valuable lessons which will help ensure against any recurrence, and has redoubled our determination to implement robust measures throughout the

Asahi Kasei Group which will eliminate the occurrence of any such incident. July 2002 was designated Operational Safety Month, with thoroughgoing and pervasive inspections to expose all cases of dangerously aged plant and equipment, inspection lapses, and any other potential source of danger; appropriate measures are being implemented to rectify all problems discovered. In addition, Operational Safety Symposiums are being held at each site location to heighten alertness to and understanding of potential safety issues.

System for inspection prior to capital investment

Inspection of ESH management plan.

Pre-investment Inspection SystemPlans for new construction or plant expansion

Preparation of ESH management plan

Inspection by party withresponsibility for ESH oversight

Revision of ESH management plan(when necessary)

Approval

Our system for inspection prior to capital investment is an essential facet of our effort to secure safe, accident-free operation. When there are plans for a significant investment in plant and equipment, we employ a system of checks to ensure sound accident prevention and response, environmental protection, product safety, and workplace safety, hygiene, and health. Any potential problem revealed in the checking process is resolved before initiating the investment.

Prior to a significant land purchase, new plant construction, or plant expansion, an ESH management plan is prepared for inspection by the General Manager of the Environment, Safety & Production Technology Administration, who inspects the plan from an independent perspective in his responsibility for oversight of ESH. Plans only proceed upon gaining approval following this inspection.

An ESH management plan comprises a description of the plans for construction, a list of the relevant regulations, a list of substances handled, and plans for crisis prevention and management, environmental management, management of workplace safety and hygiene, an evaluation of safety (identification and evaluation of potential plant hazards), organization of operation (including relevant outside companies), and measures to be implemented at start-up. In fiscal 2001, twelve projects totaling ¥22.9 billion of investment were rigidly scrutinized through this system.

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Responsible Care

Emergency Response Training at the Newport/Totoro district.

Emergency responseBasic aspects of the emergency response system (notification, reporting, establishment of corporate-level Emergency Response Headquarters) are specified in the corporate-wide Environment and Safety Management Regulations which apply to the environmental and safety aspects of all phases of every operation throughout the Asahi Kasei Group.

In addition, each operational region and plant has prepared internal rules and regulations for their own specific measures to be taken in response to disasters and emergencies, in accord with these regulations. Our sites in Mizushima and Kawasaki, where the petroleum complex disaster prevention law applies, have joined cooperative arrangements with nearby petrochemical plants for mutual emergency assistance, based on their respective Joint Emergency Response agreements.

Renewed evaluation of safety fromignition and explosionIn September 2001, the General Manager of the Environment, Safety & Production Technology Administration issued group-wide instructions concerning renewed evaluation of safety from ignition and explosion, drawing on the lessons gained from the fiscal 2000 ignition and explosion incident at our explosives plant. In accordance with these instructions, rigorous inspections to elucidate potential hazards were performed at all plants, with redundant preventative measures devised and implemented. Most of the necessary measures were completed during fiscal 2001. These inspections also became a valuable source of information which will serve to enhance our overall program for operational safety.

Earthquake countermeasuresEarthquake damage resistance and countermeasures have always been particularly strong at the Fuji, Ohito and Kawasaki plant complexes, in light of seismological estimates of the vulnerability of these regions to major earthquakes.

Following the 1995 Hanshin Earthquake, the earthquake resistance and vulnerability were reviewed throughout the company, and reinforcement and modification were implemented.

Emergency safety systems and equipmentIn accordance with regulatory standards, a full range of emergency safety systems and equipment are in place, including gas sensors, alarms, systems to monitor emitting gases and effluent water, absorbents to remove hazardous material, electric power back-up systems, and fire prevention and extinguishing systems. Plans are now under way to improve the capability of such equipment to further enhance the level of safety at our plants.

Training for emergency situationsTraining and drills for fire extinguishing, disaster prevention, evacuation, summoning needed personnel, notification, and reporting in emergency situations are periodically conducted at each operational region and plant. In addition, joint disaster response drills are periodically conducted with Fire and Police Departments, and nearby petrochemical plants with whom we have established mutual assistance regimes.

In fiscal 2001, our subsidiary Asahi Kasei Newport Terminal Co., Ltd. and the four other member firms of the Newport/Totoro district security association were honored with the Prime Minister’s National Safety Effort Award in recognition of their 33-year record of effective training and maintenance of exacting safety standards.

Crisis Management

29

The Asahi Kasei Group constantly strives to maintain and heighten safety in the physical distribution of harmful and hazardous materials.

• Arrangements for physical distribution safety control are established in cooperation with firms involved in storage, loading, unloading, and transportation, and these firms are given instruction and guidance regarding physical distribution safety.

• Together with firms involved in physical distribution, meetings are periodically held to make all persons involved with physical distribution thoroughly familiar with safety policies and plans, and to provide a forum to bring potential problems to light and discuss preventative measures.

• Physical distribution safety control standards specific to each product and mode of transportation are prepared, to be adhered to by firms engaged in physical distribution.

• We have assembled a compilation of know-how related to accidents which have occurred in connection to physical distribution. The compilation is used for physical distribution safety education and training.

• Safety practices and activities of firms involved in physical distribution are inspected regularly, and improvements are recommended as needed.

• Commendation is given to firms in recognition of outstanding safety practices.

• Transport Emergency Cards, known as “Yellow Cards,” which clearly indicate all information which would be urgently needed in case of an accident during physical distribution, are prepared for each product and mode of transportation and provided to firms involved in physical distribution. These firms are instructed in their use, and the drivers or parties responsible for the product during transport unfailingly keep the Yellow Cards on hand at all times during physical distribution.

To help ensure effective physical distribution safety by reinforcing awareness of the importance of safety among the upper management of firms involved in physical distribution, the Asahi Kasei Group holds a physical distribution safety conference each year. On July 17, 2001, a conference was held with approximately one hundred attendees, including the presidents and executive officers of environment and safety of 31 firms involved in physical distribution, Asahi Kasei Group personnel involved in physical distribution, and technical experts in the field.

Recent ESH activities of the Asahi Kasei Group were explained, results of the previous year’s physical distribution safety activities were reported, specific examples of problems encountered in physical distribution were explained, and our physical distribution safety guidelines for fiscal 2001 were presented. As an incentive to heighten the level of physical distribution safety, awards were presented to firms in commendation for outstanding safety practices.

For the Asahi Kasei Group, these conferences provide a valuable impetus in the effort to constantly improve physical distribution safety by helping firms involved in physical distribution to learn from accidents and problems which have occurred, and encouraging them to thoroughly educate and train their employees on safety issues and practices.

Physical Distribution Safety Physical DistributionSafety Conference

Yellow Cards


Physical distribution safety policy themes and safety awards for fiscal 2000

• Comprehensive inspection in the shipment of ISO containers: Eliminating accidents in a period of deregulation.

• Thorough safety education and training: Raising awareness of safety among drivers.

• Enactment of safety verification.• Promotion of improved facilities and

improved loading and unloading work among users.

• Cataloging safety issues concerning Asahi Kasei Group facilities, and implementing measures for improvement.

• Outstanding Safety Practices: Awarded to 12 companies in 14 categories.

• Continuous Accident-Free Record: Awarded to 6 companies in 6 categories.

Notification procedures and specific measures to be taken in case of accident during physical distribution are clearly indicated on Yellow Cards, as are physical properties and hazards of the particular chemical substance, safety precautions, and warnings. In case of emergency, a quick look at the Yellow Card will enable proper measures to be taken immediately, to minimize any danger and prevent the occurrence of any secondary incident. In addition to physical distribution of products, Yellow Cards are also used for wastes which are transferred off site.

Points of focus:

Ongoing themes:

Safety awards:

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Workplace Safety,Hygiene, and Health

30

Responsible Care

An array of measures are employed in recognition that the maintenance of safety is fundamental to all business activities of the Asahi Kasei Group. Beginning in 1982, a series of three-year initiatives (the sixth completed in fiscal 2000) have established the goals and impetus for safety training and education programs, preparation and utilization of technical guidelines for safety and accident prevention, routine safety assessments prior to equipment installation and modification, and regular safety audits conducted by corporate-level management.

In fiscal 2001 we began a Medium-term Responsible Care Program as a new three-year initiative to be completed in fiscal 2003. A frequency rate* for lost-workday injuries of 0.1 or less and a severity rate** for lost-workday injuries of 0.005 or less have been set as group-wide targets, and each internal company business unit and each regional Office has prepared plans for workplace safety measures to achieve these targets.

For the second year in a row, we nevertheless failed to reach our targets, recording a frequency rate of 0.27 and a severity rate of 0.04 in fiscal 2001. As shown in the graph below, after following a generally downward trend for many years, the frequency rate has recently begun to rise. It is clear that the workplace safety framework we have relied on is reaching the limits of its capacity to obtain improved results. In this light, we have determined that a comprehensive Occupational Health & Safety Management System (OHSMS) will enable us to achieve further progress. In fiscal 2001, we began implementation of OHSMS at three production facilities, and this was increased to twenty in fiscal 2002. OHSMS implementation will be progressively expanded to facilities throughout the Asahi Kasei Group, with a target of implementation at two-thirds of our facilities by fiscal 2004.

Workplace Safety

Severity rate

Sev

erity

rat

e**

Frequency rate

Freq

uenc

y ra

te*

4.0

3.0

2.0

1.0

0.0

Calendar year Calendar year

0.6

0.5

0.4

0.3

0.2

0.1

0.0 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01

Workplace Hygiene and HealthThe maintenance of employee health is an important focus at the Asahi Kasei Group. To ensure a safe workplace environment, proper measures are taken when chemical substances or other hazards are present, in accordance with the Industrial Safety and Health Law. As many chemical substances are handled at Asahi Kasei Group companies, the safe management of chemical substances is a particular point of emphasis.

The provision of a comfortable workplace environment, so that employees experience a minimum of fatigue and stress, has become an important issue. In the Asahi Kasei Group, the improvement of the workplace environment is actively pursued through a closely coordinated effort by labor and management.

*Number of accidental deaths and injuries resulting in the loss of oneor more workdays, per million man-hours worked.

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

Asahi Kasei

Chemical industry, Japan

Manufacturing industries, Japan

Asahi Kasei

Chemical industry, Japan

Manufacturing industries, Japan

31

Our 3-year Medium-term Responsible Care Program includes an objective to halt the increase in the number of employees receiving cautions regarding their health following their annual checkups. To achieve this objective, the program of fitness promotion through health-related advice and exercise, tailored to the specific circumstances and needs of each location, is being enhanced and expanded with the guidance of physicians specializing in industrial medicine.

As fiscal 2002 began, health-related concerns have heightened nation-wide, and the Ministry of Health, Labor and Welfare advanced its “Health Japan 21 Project.” In the Asahi Kasei Group, a range of employee health maintenance and promotion measures are being enhanced, and we have established a Health Promotion Policy as part of the group-wide Responsible Care program.

We are continuing implementation of the

“emotional health checkup” developed by the Mental Health Research Institute of the Japan Productivity Center for Socio-Economic Development, a non-profit organization advocating advanced industrial productivity.

To enhance measures to reduce the number of employees receiving cautions regarding their health following their annual checkups, our Department of Network Business has developed a personal diet management system which is being utilized beginning in fiscal 2002. The system, shown schematically below, will provide a valuable tool to help improve the health of employees with diabetes, high blood pressure, or high cholesterol, or who are overweight.

Fitness Promotion

Health Promotion Policy

• Systematize and unify base for health support.

• Reduce percentage of employees receiving health cautions.

• Promote emotional health and care.

Workplace Safety, Hygiene, and Health

Personal diet management system

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User

Dietitian, advisor

Internet

Discussion with managing dietitian, if necessary

Meals photographedby digital camera

Digital photographs sent

Nutrition of meals analyzed using

Advice prepared based on results of analysis

Dietary habits modifiedbased on results of analysis and advice

Results of analysisand advice sent

Personal diet management system

32

Responsible Care

Whatever organizational structures, systematic processes, and physical assets we employ for EHS purposes, effective implementation is ultimately dependent on the constant awareness and comprehensive understanding of every single employee, which underlie the innumerable individual judgments and acts entailed in day-to-day operation throughout the Asahi Kasei Group.

Thorough and complete education and training of employees thus provides the essential foundation for our EHS effort. The process is

unrelenting, beginning with orientation of new hires and continuing throughout their career with us. In addition to the company-wide training program, each internal company business unit and operational region implements a training program specifically tailored to their particular requirements.

Education and Training is performed jointly with Asahi Kasei Amidas, our specialist subsidiary for human resources development.

Education and Training

Asahi Kasei Group ESH education and training

Objective Course (summary)New hires

Follow-up after hiring

Training prior to appointment as supervisor

Training upon appointment as supervisor

Training for candidate operation supervisors

Plant and laboratory staff training

Training for managers

Training for newly appointed section chiefs

Training for newly appointed general managers

Ordinary employees (by workplace or group)

・Basic ESH knowledge.・Observation of basic safety practices, company 　　rules.・Managing one's health as lifestyle habits change.

・Follow-up to training upon hiring, when one has 　become accustomed to working life after a few 　months.

・ESH knowledge needed as a supervisor.・Awareness of duty and responsibility for safety.

・Follow-up to training prior to appointment as 　　supervisor.

・Operational safety knowledge needed as 　operation supervisor.・Awareness of responsibility as operation 　supervisor.・Learning safety evaluation techniques.

・Plant and laboratory staff training・ESH knowledge needed as staff.

・ESH knowledge needed as manager.・Awareness of responsibility as manager.

・Awareness of responsibility as section chief. 　

・ESH expected of newly appointed general 　managers

・Raising sensitivity to ESH issues・Awareness of responsibility to observe basic 　procedures and rules.

・Safety and hygiene training upon hiring, based on the 　Industrial Safety and Health Law.・Public trends related to ESH.・ESH ideals and responsibilities.・Responsible Care, and the Asahi Kasei Group program.・The basics of safety and hygiene.・Environmental issues primer.

・Responsible Care in the workplace.・Studying examples of plant accidents.・Managing one’s health.

・Safety and hygiene training for supervisors, based on the 　Industrial Safety and Health Law.・Public trends related to ESH.・Responsible Care.・Relevant laws and regulations.・Duty and responsibility for safety.・Asahi Safety Training (AST).・A comfortable workplace environment.

・Asahi Kasei Group safety technology guideline.・Studying examples of plant accidents.

・Public trends related to ESH.・Responsible Care, and the Asahi Kasei Group program.・Duty and responsibility for safety.・Asahi Safety Training (AST).・Making equipment inherently safe.・Safety evaluation techniques.・Training by simulation.

・Public trends related to ESH.・Responsible Care, and the Asahi Kasei Group program.・Relevant laws and regulations.・Overview of environmental issues.・ISO management systems.

・Public trends related to ESH.・Responsible Care, and the Asahi Kasei Group program.・Duty and responsibility for safety.・Asahi Safety Training (AST).・Overview of environmental issues.・Product safety issues.・ISO management systems.

・Duty and responsibility for safety.・Emotional fitness.

　

・Training based on the Industrial Safety and Health Law.・Studying actual incidents, using AST manual.・Duty to maintain safety.・Environmental issues primer.

33

Training for new hires, supervisors, and managersIn order to raise the level of knowledge and management skills related to EHS issues to a uniformly high standard throughout the company, a tiered training program is implemented, beginning with orientation and training of new hires and progressing through training for individuals appointed to supervisory and managerial positions.

By the end of fiscal 2001, nearly all production line section chiefs throughout the Asahi Kasei Group had completed Asahi Safety Training (AST). The training was expanded to include assistant section chiefs in fiscal 2001, with approximately 110 of these personnel completing the training.

“Asahi Technical College” classes were held to provide young engineers in Nobeoka with a broad base of specialist knowledge. In addition to safety engineering, the curriculum included analytical technology and patent regulations. Specialist instructors from outside the company were engaged to teach the intensive, high-quality classes. In fiscal 2001, 42 engineers completed the course on environmental safety engineering.

Group-wide education regarding specific issuesTo keep personnel abreast of specific EHS issues, the Environment, Safety & Production Technology Administration conducts company-wide education and information programs as deemed necessary. Examples include programs to educate all management-level personnel regarding current ESH issues.

By business division and operational regionEducation and training programs at the regional and divisional levels are implemented in parallel with the company-wide training program. Education and training related to product safety, ISO 9000 series quality management systems, and ISO 14001 environmental management systems are performed at each business division. Education and training programs related to EHS issues specific to particular production processes and equipment are implemented by operational region.

Training by computer simulationAdvanced safety systems and equipment are important elements of safe operation at every chemical plant, but the key lies in the skill of highly trained, professional operating personnel. The operators must not only be capable of controlling routine operation, startup, and shutdown, but must also be able to respond quickly and appropriately to any process abnormality or emergency.

To aid in the training of skilled operators, we have developed computer models to simulate the behavior of actual plants, and used this simulation as part of the operator training course since 1987. An advanced simulator at our Mizushima plant complex is used to develop the skills of well-trained operators. Practical hands-on training related to machinery, electric power systems, and instrumentation are performed using miniature plants.

Process simulation facility at the Mizushima Process Training Center.

Machine training room at the Mizushima Technology Training Center.


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Responsible Care

The 14th Asahi Kasei Group ResponsibleCare symposium.

Outside the companyTo keep abreast of information, knowledge, and administrative trends as they relate to EHS issues, personnel attend various lectures and conferences held by administrative authorities, industry associations, and other relevant organizations. Personnel also attend public classes and seminars to obtain the capabilities, skills, and qualifications needed for specific work responsibilities.

Officially certified qualificationsIn conjunction with the corporate training program, the acquisition of officially certified qualifications is encouraged and supported. As shown in the following table, the total number of personnel who have obtained each class of qualification is well in excess of the regulatory minimum required for our operations.

Mini-plant at the Mizushima TechnologyTraining Center.

Each year, production supervisors and researchers from throughout the Asahi Kasei Group gather for the Asahi Kasei Responsible Care Symposium, where technologies and management techniques related to ESH are exchanged.

The 14th symposium was held in Mizushima on December 7, 2001 with five hundred attendees, including the president of Asahi Kasei, presidents of each internal company business unit, general managers of each division, and each regional office, presidents of affiliated companies, general managers of plants, production departments, and production sections, and labor union leaders.

In addition to the President’s speech entitled Responsible Care in Corporate Management, presentations included an explanation of OHSMS, examples of outstanding environmental and safety practices at certain business units, and lessons learned from plant accidents. A specialist physician in industrial medicine gave a lecture on health, and Asahi Kasei Group Safety Awards were presented.

Asahi Kasei Responsible Care Symposium

Personnel with officially certified qualifications

Completion of ISO internal auditor training

Class of qualification No. certified* Regulatory minimum

No. of personnel

ISO internal quality auditor

ISO internal environmental auditor

High-pressure gas manufacturing safety

Hazardous materials handling

Pollution prevention control

Energy management

Workplace health and hygiene

Workplace environment analysis

Boiler operation

Electric power supervision

440

1,044

144

56

97

20

142

28

2,223

6,927

1,033

196

1,023

121

1,381

96

395

733

* Some personnel have more than one certification.

35

AST is a manual developed by the Asahi Kasei Group for safety training. The objective is for personnel to gain a heightened sensitivity to safety issues and to anticipate potential problems and respond proactively. The training, comprising the following, is employed as an essential element of the safety training curriculum throughout the Asahi Kasei Group at each plant and workplace.

• All employees contribute to safety with an

awareness of accident prevention gained by thinking subjectively about the work they perform.

• Preparing preventive measures which take into consideration origins of people’s blind spots, such as illusions, operational mistakes, and mistakes in judgment.

• Analyzing past incidents to be able to foresee potential problems and think proactively to prevent accidents.

Asahi Safety Training (AST)


Asahi Safety Training System

Actual incidents Potential problems foreseen

Operationalaccidents

Processincidents

ImplementationcardsHypothesis

State ofstability

State ofinstability

State ofdanger Human

(blind spot)

Errors injudgment

Operationalmistakes

Equipment SystemState ofhazard

Problems ofawareness

Environmentalcauses

Forcedconceptualization

Direct cause

Accident analysis

Preventingrecurrence

Evaluatingpresent practices

III. Techniques for reviewing safetyII. Gaining awareness of safetyI. Fundamentals of 　accident prevention

Mechanismof occurrence

Four-step Asahimethod for

accident analysis・Asahi Kasei method　for problem　hypothesizing.・Problem　hypothesizing　based on　operability study.

Disaster p

otential

TM card

(statistical analysis)

Blind

spot hyp

othesizing based

on behavior analysis.

Review

based

on foreseen prob

lem.

Utilizing exam

ples of actual incid

ents at other sections,

TMH

cards (d

iagramm

atic analysis)

H card

s (blind

spot classification)

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Prime Minister’s NationalSafety Effort Award

The 29th Annual HitachiEnvironmental Foundation/Nikkan

Kogyo Shimbun EnvironmentAwards: Award for Excellence

36

Responsible Care

Outstanding achievements at Asahi Kasei Group plants and locations resulting from the constant effort to improve performance in terms of

environmental protection, operational safety, and workplace hygiene and health were recognized with the following awards for fiscal 2001.

Public Recognition and Awards

The Asahi Kasei Group presents internal safety awards to plants and laboratories in recognition of outstanding records of accident-free operation resulting from efforts to improve safety management and safety technology. Awards presented for fiscal 2001 are shown below.

Asahi Kasei Group Safety AwardsAsahi Kasei Group Safety Awards

President’s Safety AwardSafety EffortAwards

Fuji Electronic Components Research Annex

Detonator Plant

Ion Exchange Membranes Production Department

15 years accident-free

1.1 million man-hours accident-free (Halfway to Ministry of Health, Labor and Welfare Class 1 accident-free record)

1.65 million man-hours accident-free (Halfway to Ministry of Health, Labor and Welfare Class 1 accident-free record)

The 33rd Annual Japan ChemicalIndustry Association TechnologyAwards: Award for Environmental

Technology

Nitrous oxide gas

Cyclohexanol Adipic acid

Nitric acid recovery

Asahi Kasei technology

Nitric acid

Thermaldecomposition Oxygen, nitrogen

Technology for thermal decomposition of nitrous oxide developed by our Performance Chemicals internal company business unit received an environmental technology award from the Japan Chemical Industry Association in recognition of its outstanding contribution to alleviating the environmental burden of operations.

Nitrous oxide, which has been identified as a “greenhouse gas,” is generated as a by-product from the synthesis of adipic acid by reacting cyclohexanol with nitric acid. High operating efficiency is obtained through multistage thermal decomposition.

A process for the recycling of dregs from distilled spirits using membrane separation technology received and award from the Hitachi

Environmental Foundation and the Nikkan Kogyo Shimbun in recognition of its outstanding contribution to enabling sustainable development as a recycling process with a moderate environmental burden.

Dregs from the distillation of shochu - a traditional Japanese distilled liquor - have conventionally been disposed of in the ocean. Asahi Kasei now collects shochu dregs from throughout Kyushu and uses membrane separation technology to remove useful solids, which are then used to produce fertilizer and animal feed. This remarkable process achieves a recycling rate near 100% at a running cost which is roughly half that of ocean disposal.

The five member firms of the Newport/Totoro district security association, including our subsidiary Asahi Kasei Newport Terminal Co., Ltd., were honored with the Prime Minister’s National Safety Effort Award for their contribution to the prevention of industrial accidents and fires which pose a threat to people’s daily lives.

The award comes in recognition of the exemplar establishment and maintenance of a mutual accident prevention and response system for 33 years, including large-scale annual drills involving the fire department headquarters, local fire departments and fire brigades, the coast guard, the police, and local residents. Presentation of Prime Minister’s Award.

Awards in Recognition ofESH Results

37

As part of our Responsible Care initiative, the Asahi Kasei Group actively seeks to maintain a relationship of mutual understanding and cooperation with the communities in which we operate. The wide-ranging effort includes communication with the public through a variety of forums, participation in environmental conservation activities organized by public authorities, and

encouragement and promotion of employee participation in community volunteer activities. Each regional Office and plant enjoys broad latitude to determine their own community outreach program and activities, based on local circumstances. Following are some examples of community outreach activities and events in fiscal 2001.

Information and Dialog

Plant Tours, School Visits Participation in Local ForumsPlant tours are held to allow members of the community to gain a better appreciation of our environmental and safety measures. Each regional Office and many separate plants invited local residents, elementary and middle school students, and community groups for tours of plants and facilities and presentations describing our operations. Students visited our facilities in cooperation with local elementary school and middle school study trips, where production operations and environmental and safety measures were described. In communities where we have regional Offices, Asahi Kasei Group engineers visited local schools and other local bodies to describe our technologies and ESH activities.

Representatives from our various plants actively participated in a variety of local forums and assemblies for community discussion of environmental issues. Such forums not only enable us to present our perspective, but also provide valuable opportunities for community members to express their concerns, leading to constructive discussions and exchanges of opinion.

Expansion and Construction PlansPrior to construction for plant maintenance and expansion, public meetings were held to outline our construction plans and address community concerns about external effects of the construction work, such as noise and electromagnetic disturbance.

Regional Responsible Care Forums

Provision of EnvironmentalPamphlets and Information

At sites with ISO14001 environmental management systems, Environmental Policy pamphlets were prepared and made available to the public. In response to an inquiry from a nearby elementary school regarding environmental issues, our Kawasaki Office prepared an easy-to-understand overview describing environmental aspects of our Kawasaki operations.

Newspaper article featuring Asahi Kasei lecture at a middle school. (Courtesy of Yukan Daily Shimbun)

Community Outreach

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The Japan Responsible Care Committee held regional public forums on Responsible Care issues in Kawasaki and Oita to explain Responsible Care and its results to representatives of local government bodies and members of the community, and provide a forum for discussion and dialog. Representatives of the Asahi Kasei Group were also in attendance.

Maintaining NeighborhoodCleanliness

Opening of Plant Grounds Area Environmental Councils

Employee Volunteerism

38

Responsible Care

Each year the grounds at the Tohmi Plant in Nobeoka are opened to the public for the spring tradition of picnicking under the cherry blossoms. The Suzuka Plant of Fabricated Home Products has a similar tradition of opening the avenue in front of the employees residence complex to the public during cherry blossom season. In addition, the area around the main gate of the Suzuka Plant has been transformed into a garden path that is open to the public throughout the year. The path is adorned with laurel trees - the environmental symbol of the Fabricated Home Products internal company business unit - and flowers are replanted for the four seasons. In fiscal 2001, solar/wind-powered streetlights were installed, contributing to heightened environmental awareness in the community.

Employees at many sites periodically clear the plant vicinities of litter, rubbish and weeds. The Fabricated Home Products internal company business unit held an “Eco-Cleanup Campaign” at its Suzuka and Nobeoka plants, Tokyo and Osaka offices, and the Ageo, Ono, and Gunma plants of subsidiary Asahi Kasei Pax. This is a volunteer event for employees, their families, and the public to remove, separate, and dispose of trash and litter from the area around the nearest train stations, the plant surroundings, and nearby parks.

Each year, representatives of many Asahi Kasei plants and regional Offices play an active role as members of various environmental councils organized by Prefectural, City, Town, and Village governments, participating in the planning and administration of a variety of functions and monthly events.

In May 2001, Mie Prefecture held “Mie Environment Fair 2001” in Ise City as part of its movement to become an environmentally advanced prefecture. Our Suzuka Plant hosted a booth with panel displays showing the Suzuka Plant garden path, zero-emission efforts, and the Eco-Cleanup Campaign. The Asahi Kasei Responsible Care Report, describing environmentally efficient products and environmental measures of the Asahi Kasei Group was also on display. The fair attracted over 60,000 visitors, about 2000 of whom visited the Suzuka Plant booth.

Throughout the Asahi Kasei Group, employees participate in a wide-range of volunteer activities each year in their local areas. Examples include “Clean Lake Biwa Campaign” in Moriyama in July and Fuji City’s beech tree-planting on Mt. Fuji in April and “Clean Fuji River Campaign” in November.

In October 2001, our Detonator Plant in Nobeoka held a “Beach Cleanup Campaign” involving all plant personnel. In addition, employees throughout the Asahi Kasei Group contributed in a variety of capacities in a range of volunteer activities including blood drives and traffic safety campaigns.

Community Fellowship

“Eco-Cleanup Campaign” at Asahi Kasei Pax.

The garden path at the Suzuka Plant.

Mie Environment Fair 2001.

A solar/wind-powered streetlight at the Suzuka Plant.

Environmentally Efficient Productsand Technologies

39

Asahi Kasei Group has endeavored to develop technologies and products which contribute to environmental preservation throughout their life cycle of production, use, and disposal. As shown below, such development efforts have resulted in a

wide range of environment-friendly products and technologies.

40

40

40

40

40

41

41

41

41

42

42

42

42

Product/technology

Internalcompanies/subsidiariesand affiliates

Ecological aspects

Resource

conservation

Chem

ical substances

Waste

reduction

Other

Fo

r mo

re,see p

age:

Category*

Fibers and Textiles

Chemicals and Plastics

Performance Plastics and Compounds

Performance Chemicals

Fabricated Home Products

Specialty Products and Systems

Construction Materials

Housing

Electronics

Asahi Engineering Co., Ltd.


Toyo Kensa Center Co., Ltd.

Asahi Kasei Amidas Co., Ltd.

Eutec™ oil-water separators

Ecosensor™

Bemberg™ and Bemliese™ regenerated cellulose

AGI hollow plastic molding technology

Clear Surface Molding technology

Long™ coated fertilizer and Ecolong™ environmentally degradable coated fertilizer

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

SB latex coating for moisture-resistant paper and release paper

Suntec™ PAK coating powder

Methyl methacrylate production process by direct oxidative esterification

Phosgene-free, methylene chloride-free polycarbonate production process

Asaclean™ purging agent for plastic moldingmachines

Duranate™ MF-K60K

Cyclohexanol production process from cyclohexene

Acclima™

OPS™ film (with recycled mark)

Aspac Sarasara™ R

Halogen-free cleaning agent

Membrane electrolysis process

Microza™ MF and UF modules and systems

Acilyzer™ electrodialyzers

Environmental reagent (Toyo Clean Chemical Co., Ltd.)

Neoma™ foam

Suny Lite™ SD airtight insulation system

Long Life Home products

Apolarm™ C oil leak detector, Apolarm™ M waste water monitor (San Denshi Industry Co., Ltd.)

Exhaust gas treatment technologies

Waste liquid treatment equipment

Waste liquid incinerator

Fluorine and arsenic adsorbent

Magnesium hydroxide for desulfurization

Environmental analysis

Environmental consulting

Water treatment by filtration to separate oil from water.

Polyester filament chemically recycled from post-consumer PET bottles and other used PET products.

Effectively utilizes natural resources, enables environmentally compatible disposal.

Reduced number of parts, reduced materials consumption, reduced weight.

Eliminates the need for painting, reducing paint and solvent use.

Coated fertilizer enables controlled release of fertilizer to avoid excessive application. Photodegradable, biodegradable coating is restored to the natural cycle.

Flame retardance without using halogens.

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

Powder coating requires no solvents, for reduced atmospheric emission.

Eliminates ammonium sulfate by-product.

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

Reduces the amount of waste during material changeover.

Enables low-temperature hardening (90˚C) so blocking agent is not diffused.

Resource-efficient process with minimal waste gas and waste liquid.

SaranTM fiber biological membrane carrier for water treatment.

Made from punch-out scrap from biaxially oriented polystyrene sheet.

Foamed polystyrene loose fill cushioning made from punch-out scrap from biaxially oriented polystyrene sheet.

Metal cleaning, precision cleaning, electronics cleaning without ozone-depleting halogen compounds.

Eliminates the need for asbestos and mercury in chlor-alkali production.

Purification of drinking water, treatment of waste water; enables closed water systems in industrial and commercial applications.

Removal of nitrates from drinking water, treatment of waste water.

Microbial enzymes used to accelerate bioprocessing, for sludge volume reduction, and for deodorization.

High-performance home insulation panels, for energy conservation.

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

60-year durability enables reduction of waste from demolition and rebuilding.

Detection of oil leaks and monitoring of industrial waste water for surface oil.

Elimination of hazardous substances and recovery of useful substances from exhaust gases.

Activated sludge treatment.High-performance fluorine adsorption.

Treatment of highly concentrated organic waste liquids, and waste liquids containing inorganic salts.

High-performance adsorbent for water treatment.

Economic, efficient flue gas desulfurization without need for secondary treatment.

Capable of analyzing endocrine disrupters and dioxins in addition to ordinary environmental analyses.

Establishment of environmental management systems.

* 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 by treatment of waste water or exhaust gas.Waste reduction indicates mitigation of the amount of waste generated or reduction of waste through recovery or recycling.

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AcclimaTM Biological MembraneCarrier for Water Treatment

Clear Surface Molding (CSM)Molding Technology

EcosensorTM Recycled Polyester Filament

EcolongTM Environmentally Degradable Coated Fertilizer

AsacleanTM Purging Agent for Plastic Molding Machines

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Responsible Care

Asaclean™.

Acclima™ before and after use (scales differ).

Ecolong™.

In June 2001, we began production of polyester filament from feedstocks using the world’s first process for chemical recycling of post-consumer PET bottles. The filament, marketed under the brand EcosensorTM, is used in a wide range of applications including uniforms, sportswear, innerwear, and artificial suede of polyester microfiber.

LongTM coated fertilizer from the Asahi Kasei Group holds the top share in the Japanese market with its established reputation for controlled-release performance, contributing to environmentally friendly agriculture. EcolongTM additionally features a biodegradable, photodegradable coating to provide nutrients to crops while the remaining coating is broken down and returned to the natural environmental cycle.

Employing an insulating layer at the mold cavity surface so that the heat of the molten resin raises the mold surface temperature during molding, CSM improves surface transfer and enables the molding of parts with excellent surface appearance. This makes painting to improve appearance unnecessary, eliminating the associated environmental effects.

Processing loss from plastic molding in Japan amounts to almost 800,000 tons of plastic each year, largely during material changeover. AsacleanTM enables loss from material changeover to be reduced by 90%. Another significant portion of processing loss is the result of contamination from heat-deteriorated material which adheres to screw and cylinder surfaces. By cleaning the screw and cylinder prior to processing, AsacleanTM eliminates this loss as well, for a significant reduction in wastes.

Able to remove organic matter, ammonia, algae, and odors from contaminated water at a relatively low cost with simple operation, the biological membrane process for water treatment holds great potential for application in areas with water pollution problems. Microorganisms in the water adhere to a carrier, where they form a biological membrane. Contaminants are decomposed by the microorganisms when brought into contact with the membrane. The AcclimaTM membrane carrier made of SaranTM fiber is used in a wide variety of forms due to the outstanding water purification performance enabled by its large microorganism retention capacity.

MicrozaTM MF and UFHebel HausTM Long Life Home

Membrane Electrolysis

AcilyzerTM Electrodialyzers

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Membrane electrolysis.

Microza™.

Acilyzer™.

The “long life home” concept is part of a new strategic vision for Hebel Haus™ products which will maintain ownership satisfaction over more than half a century. Given the serious shortage of landfills, and that homes have an average life span of 26 years in Japan, “long life home” products with the durability to last for over 60 years make a valuable contribution to waste reduction by reducing the need to demolish and rebuild.

Microza™ MF (microfiltration) and UF (ultrafiltration) modules and systems bring benefits of energy conservation and waste reduction in a wide range of industrial processes in the fields of biotechnology, chemicals, and electronics. Microza™ water purification systems also enable the recycling of water in closed systems at many factories and resort centers. In addition, Microza™ systems increasingly serve the public with safe, high-quality drinking water, as their use at municipal waterworks grows.

Acilyzer™ electrodialyzers enable the efficient removal of ionic substances from various solutions. Acilyzer™ systems contribute to the supply of safe drinking water by removing nitrates from contaminated water, and enable resource conservation and waste reduction in the food and biotechnology industries. Additional applications include treatment of industrial waste water and ash swill from industrial waste incineration.

Asahi Kasei has long been a world-leader in the development and establishment of the membrane electrolysis process for chlor-alkali production, which eliminates the need for mercury and asbestos as process materials. At present, our technology for membrane electrolysis is employed at 52 plants in 14 countries around the world, with a total annual capacity of over 6 million tons of caustic soda per year. Ongoing technological advancement continues to bring greater efficiency for energy conservation.

Environmentally Efficient Products and Technologies

The basic structure of steel framing and Hebel™ panels engenders outstanding durability.

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Waste Liquid Incinerator

Environmental Analysis

Read-F Fluorine and Arsenic Adsorbent

Environmental Management Systems

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Responsible Care

Waste liquid incinerator.

Read-F adsorbent.

Toyo Kensa Center Co., Ltd., at Ohito.

The waste liquid incinerator developed by Asahi Engineering Co., Ltd. is able to safely and efficiently treat highly concentrated organic waste liquids and waste liquids containing inorganic salts, which are ordinarily very difficult to treat. These incinerators feature fully automatic operation, and emission concentrations of dioxins, carbon monoxide, and soot and dust all well within the increasingly stringent regulatory limits.

Read-F, made by Shin Nihon Salt Co., Ltd., efficiently removes fluorine and arsenic from water by adsorption. It features high performance to enable compliance with the strictest water quality standards, low running cost, and reduction in the generation of sludge from water treatment.

Fluorine adsorption applications are principally in treatment of waste water from semiconductor production and thermal power generation. Read-F is in use for fluorine adsorption at over 50 sites. Arsenic adsorption application, featuring extreme ease-of-use by simply passing water through a column filled with the adsorbent, is helping to protect health in Japan and overseas by removing arsenic from groundwater to produce safe drinking water.

Asahikasei Amidas Co., Ltd. has developed and made patent applications for a “Flow Chart and Format” (FCF) method to establish management systems compliant with ISO standards. Many companies have employed the FCF method for ISO 14001 environmental management systems and ISO 9000-series quality management systems, through the consulting services of Asahikasei Amidas. Clients have been pleased with the results, as the FCF method enables the simple establishment of efficient, effective, and ultimately satisfying ISO management systems. The FCF method is also a powerful tool when modifying or improving established management systems.

With a full array of high-precision analytical technology, Toyo Kensa Center Co., Ltd. serves the environmental protection effort by providing a variety of environmental analyses. Capability to analyze extremely trace concentrations of environmental endocrine disrupters, dioxins, and coplanar polychlorinated biphenyls complement its facilities for ordinary analysis of water quality, atmospheric and soil pollutants, and industrial waste for regulatory compliance. Additional capabilities include analyses related to sick house syndrome, such as inspection of homes and testing of emanation from construction materials. ISO 9001 certification attests to the reliability of its analytical results.

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Shiraoi Plant

Oita Plant

Mizushima Office

Moriyama Office

Ohito Office

Kawasaki Office

Chikushino Plant

Iwakuni Plant

Osaka Head Office

Tokyo Head Office

Wakayama Plant

Nagoya Plant

Suzuka Plant

Kakegawa Plant

Chiba Plant

Hozumi Plant

Sakai Plant

Matsudo Plant

Our Responsible Care program is uniformly applied throughout all locations, subsidiaries, and affiliated companies of the Asahi Kasei Group. The map below shows the locations of the six regional offices and the plants of Asahi Kasei. The

following page shows all locations and group companies included in our Responsible Care program.

Asahi Kasei Group Locationsand Plants

Fuji OfficeNobeoka Office

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Responsible Care

Offices and Plants

6-4100, Asahimachi, Nobeoka, Miyazaki 882-0847 Japan Tel.+81-982-22-2011 Leona PlantPolyester PlantBemberg PlantRayon PlantNonwovens PlantChemicals PlantVDC Polymer PlantTohmi PlantDetonator PlantNobeoka Pharmaceuticals PlantHyuga Chemicals PlantFP Coil Development Dept.Planova PlantAramica PlantPower Supply Dept.3-13, Ushiodori, Kurashiki, Okayama 712-8633 Japan Tel. +81-86-458-2111Basic Petrochemical Production Dept.1st Monomers Production Dept.2nd Monomers Production Dept.ABS & SB Latex Production Dept.Suntec Production Dept.Tenac Production Dept.Power Supply Dept.515 Kojimacho, Moriyama, Shiga 524-0002 Japan Tel. +81-77-581-4001Spunbond PlantRoica PlantMoriyama Industrial Membranes PlantArtificial Fishing Reef Development Dept.Power Supply Dept.2-1, Samejima, Fuji, Shizuoka 416-8501 Japan Tel .+81-545-62-2111Cashmilon PlantPewlon PlantPhoto Products PlantFertilizers PlantPlastics Fabrication PlantFuji Plant, Construction MaterialsFuji Industrial Membranes PlantElectronics Materials PlantFuji Pharmaceuticals PlantPower Supply Dept.632-1, Mifuku, Ohitocho, Tagata-gun, Shizuoka 410-2321 Japan Tel. +81-558-76-7011Ohito Pharmaceuticals PlantOhito Diagnostics PlantOhito Liquors PlantKamishima Pharmaceuticals PlantOhito Liquors Plant, Kyoto BranchNagoya Pharmaceuticals PlantKakegawa Pharmaceuticals PlantEngineering Dept.1-3-1,Yako, Kawasaki-ku,, Kawasaki, Kanagawa 210-0863 Japan Tel. +81-44-271-2021Monomers Production Dept.ABS & SB Latex Production Dept.Synthetic Rubber Production Dept.Acrylic Plastics Production Dept.Ion Exchange Membranes Production Dept.Power Supply Dept.Chiba Plant106 Oaza-Someya, Sakaimachi, Sashima-gun, Ibaraki 306-0493 Japan Tel. +81-280-87-5202 Iwakuni PlantHozumi Plant Matsudo Plant Sakai PlantShiraoi PlantNeoma Foam PlantOita PlantChikushino PlantWakayama PlantSuzuka PlantSuzuka Wrap Film Plant

Adipic acid, hexamethylenediamine, nylon 66.Polyester filament.Cuprammonium rayon, nonwoven cellulose filament.Viscose rayon.Artificial suede, melt-blown/spunbond nonwoven fabrics.Nitric acid, caustic soda, chlorine, hydrochloric acid, fertilizer.Polyvinylidene chloride resin, polyvinylidene chloride latex.Explosives, nitrocellulose, microcrystalline cellulose.Detonators.Pharmaceutical intermediates.Coating materials, industrial cleaning agents. Fine-pattern coils.Virus removal filters.Aramid film.Utilities (electrical power, steam, water)

Ethylene, benzene.Styrene monomer, cyclohexanol, ammonia.Styrene monomer, acrylonitrile.Acrylonitrile-butadiene-styrene resin, styrene-butadiene latex.High density polyethylene, low density polyethylene. Polyacetal.Utilities (electrical power, steam, water)

Spunbond nonwoven fabrics.Roica elastic polyurethane filament.Li-ion rechargeable battery separator membranes, filtration membranes and modules.Artificial fish reefs.Utilities (electrical power, steam, water)

Acrylic staple.Acrylic filament.Photosensitive resins.Fertilizer, nitric acid.Polymethyl methacrylate sheet.Autoclaved lightweight concrete panels, piles.Filtration membranes and modules.Photosensitive dry film resist, photosensitive polyimide.Pharmaceutical intermediates.Utilities (electrical power, steam, water)

Pharmaceutical materials.Diagnostic reagents.Liquors.Pharmaceuticals.Liquors.Pharmaceuticals.Pharmaceutical distribution.Equipment design, construction, and maintenance; utilities management.

Acrylonitrile, methyl methacrylate, 2,6-xylenol.Acrylonitrile-butadiene-styrene resin, styrene-butadiene latex.Synthetic rubber.Polymethyl methacrylate.Ion-exchange membranes.Utilities (electrical power, steam, water)Modified polyphenylene ether, polymethyl methacrylate, plastic optical fiber.

Autoclaved lightweight concrete panels, piles.Autoclaved lightweight concrete panels.Autoclaved lightweight concrete panels.Autoclaved lightweight concrete panels, piles.Autoclaved lightweight concrete panels, piles.Phenolic foam insulation panels.Explosives.Metal cladding.Acrylic latex, stencil paper.Polyvinylidene chloride wrapping films, biaxially oriented polystyrene sheets, polyolefin films, foams.Food wrapping films.

Region Plant Main products

Tokyo head office 1-1-2 Yurakucho, Chiyoda-ku, Tokyo 100-8440 Japan Tel. +81-3-3507-20601-2-6 Dojimahama, Kita-ku, Osaka 530-8205 Japan Tel. +81-6-6347-3111Osaka head office

Asahi Kasei Eltas Co., Ltd.Nobeoka Asahi Senni Co., Ltd.Sanyo Petrochemical Co., Ltd.Asahi Kasei Color Tech Co., Ltd.Japan Elastomer Co., Ltd.Kawasaki Sun Business Co., Ltd.Leona Kiko Co., Ltd.Asahi Home Products Co., Ltd.Suzuka Sun Business Co., Ltd.Wacker Asahikasei Silicone Co., Ltd.Asahi Kasei Metals Ltd.Asahi Kasei Geotechnologies Co., Ltd.Asahi Kayaku Kyushu Co., Ltd.Asahi Kasei City Guy Co., Ltd.Sakai Kako Co., Ltd.Fuji Kako Co., Ltd.Kyowa Kako Co., Ltd.Chuwa Kako Co., Ltd.Hokkaido Shiba Kogyo Co., Ltd.Asahi Kasei Microsystems Co., ltd.Asahi-Schwebel Co., ltd.Asahi Medical Co., Ltd.Asahi Vet Japan Co., Ltd.Koyo Fudosan Co., Ltd.Asahi Kasei Amidas Co., Ltd.Asahi Kasei Fukuri Service CorporationAsahi Research Center Co., Ltd.Shin Nihon Salt Co., Ltd.Ako Kaisui Co., Ltd.Asahi Finance Co., Ltd.San Denshi IndustryAsahi Kasei Kankyoujigyou Co., Ltd.Sun Business Services Co., Ltd.Toyo Kosan Co., Ltd.

Spunbond nonwoven fabrics.Cuprammonium rayon and polyester subcontracting, fish bait.Petrochemical feedstocks.Coloring and compounding of synthetic resins.Synthetic rubber.Contract work.Packing and shipping of resins and fibers.Sale of wrapping film and other household products.Plastic processing.Silicone products.Aluminum paste.Industrial explosives.Industrial explosives.Installation of piles.Construction materials processing.Construction materials processing.Construction materials processing.Construction materials processing.Construction materials processing.LSIs.Glass fabrics.Artificial kindneys and other medical devices.Animal health products.Real estate brokerage, subcontracted office work.Personnel placement, agency, and training; ISO consulting.Management of welfare facilities.Information and analysis.Table salt.Table salt.Investment, finance.Engineering of electronics, control, and information systems.Disposing of industrial waste.Subcontracting.Welfare, insurance, advertising.

Asahi Kasei Techno Plus Co., Ltd.Asahi Kasei Newport Terminal Co., Ltd.A&M Styrene Co., Ltd.Mizushima Sun Business Co., Ltd.Nippon Crenol Co., Ltd.Nobeoka Plastics Processing Co., Ltd.Asahi Kasei Pax CorporationAsahi Kasei Finechem Co., Ltd. Nobeoka PlantAsahikasei Epoxy Co., Ltd. Mizushima PlantAsahi Chemitech Co., Ltd.Oita Sun Business Co., Ltd.Asahi Kasei Construction Materials Co., Ltd.Hozumi Kako Co., Ltd.Matsudo Kako Co., Ltd.Asahi Giko Co., Ltd.Matsudo Matt Co., Ltd.Tanaka Kiko Co., Ltd.Asahi Kasei Marinetech Co., Ltd.Asahi Kasei Electronics Co., Ltd.Asahi Kasei Techno Systems Co., Ltd.Asahikasei Aime Co., Ltd. Nobeoka PlantMitaka Pharmaceutical Co., Ltd. Ohito PlantFukumusume Sake Brewery Co., Ltd.Sun Associates Co., Ltd.Asahi Kasei Ability Co., Ltd.Sun Foods Co., Ltd.Sun Trading Co., Ltd.Asahi Salt Co., Ltd.Asahikasei Jyoho System Co., Ltd.Asahi Engineering Co., Ltd.Nobeoka-sizai Industry Co., Ltd.Moriyama Sun Business Co., Ltd.Toyo Clean Chemical Co., Ltd.Toyo Kensa Center Co., Ltd.

Plastic molding, sale.Storage of raw materials.Polystyrene.Subcontracting.2,6-xylenol.Nylon 66 compounding. Fabricated plastic products.Specialty chemicals.Epoxy resin.Resin capsule anchors.Public welfare.Construction materials.Construction materials processing.Construction materials processing.Construction materials processing.Construction materials processing.Construction materials processing.Artificial fish reefs.Hall elements, pellicles.Applied electronic equipment.Contact lenses.Animal health products.Alcoholic beverages.Patent-related subcontracting.Printing, bookbinding, and office work.Provision of employee meals.Sales of fibers, chemicals, and medical devices.Table salt for food processing.Computer software.Plant, equipment, process engineering.Warehousing raw materials.Subcontracting.Environmental chemicals, antipollution equipment.Environmental and other analyses, clinical testing, soil pollution evaluation.

Company Business line/Main products Company Business line/Main products

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FREQUENTLY ASKED QUESTIONS

We receive many inquiries covering a wide range of subjects related to ESH concerns. Our response to

some of the most common are given below

Efforts at the Asahi Kasei Group The Japan Chemical Industry Association (JCIA) is working in cooperation with Japanese governmental bodies, academia, and industry associations in Europe and North America to advance the necessary research and investigation to increase scientific understanding of endocrine disrupters (also called endocrine modulators, environmental estrogens, or exogenous hormonally active agents). The Asahi Kasei Group has taken an active role in promoting the JCIA’s work in this area.

In July 2001, the JCIA published 36 Questions and Answers about Endocrine Disruptors (Chuokoron Jigyo Publishing) to provide the public with accurate information in this field. A committee member from Asahi Kasei played a leading role in the preparation of this publication.

Measures regarding specific substances The relevant manufacturers associations are working to advance research, experiments, and other concrete measures in response to concerns about the endocrine disrupting potential of specific chemical substances. As a member of the Japan Styrene Industry Association (JSIA), the Asahi Kasei Group is involved in efforts related to styrene oligomers.

Because polystyrene is commonly used in food containers, it was feared that styrene dimers and trimers may be extracted and ingested in harmful amounts. The JSIA has commissioned independent studies to investigate the biological effects of styrene dimers and trimers. The Netherlands Organization for Applied Scientific Research (TNO), an independent testing authority, was commissioned to conduct animal tests to confirm whether or not styrene dimers and trimers displayed estrogenic activity. The results of these tests indicated no estrogenic activity. The Shokuhin Yakuhin Anzen Center (Food and Drug Safety Center) was commissioned to conduct animal tests to confirm whether or not styrene dimers and trimers resulted in any adverse reproductive or behavioral effects. The results of these tests indicated no adverse effects.

Based on the results of these and other tests conducted worldwide, the Japanese Ministry of Health and Welfare (presently Ministry of Health, Labor and Welfare), Environment Agency (presently Ministry of the Environment), Ministry of Agriculture, Forestry, and Fisheries, and Ministry of International Trade and Industry (presently Ministry of Economy, Trade and Industry) have clearly concluded in interim reports and other documents that on present

evidence, “it is not necessary to proscribe polystyrene use,” and “there is no particular need to perform further tests.”

Further, the Environment Agency (presently Ministry of the Environment) stated, “we see no reason for any further scientific study on styrene dimers and trimers” in its Environmental Hormone Strategic Plan “Speed ’98” announced in May 1998. Styrene dimers and trimers were deleted from the list of “chemical substances suspected of having endocrine disruption activity” in the November 2000 revision.

Ongoing efforts Nevertheless, because so much unclarity remains regarding the endocrine disrupter hypothesis, we believe further investigation based on sound scientific principles is essential. The Asahi Kasei Group will continue to promote the advancement of studies to address outstanding questions, while closely following the progress of the various investigations and research ongoing worldwide, and we are prepared to swiftly implement appropriate risk management measures which are deemed necessary during the course of this process.

Endocrine disruption is one area of priority for research being conducted by the JCIA as part of the Long-range Research Initiative (LRI), with a delegate from the Asahi Kasei Group involved from the outset. We also actively participate in international conferences on endocrine disruption.

Containers and packaging make up a large portion of post-consumer waste. The Law for Promotion of Sorted Collection and Recycling of Containers and Packaging was enacted to reduce the volume of waste for disposal through measures to recycle post-consumer containers and packaging. At present, measures to recycle bottles made of glass and polyethylene terephthalate (PET) are being implemented, and beginning in April 2000, implementation will expand to include other containers and packaging made of paper and plastic.

Consumers, producers, and local governments each play a role in the recycling system established with this law. Consumers have the responsibility to separate recyclable materials from other wastes, and present them for collection in accordance with local guidelines. Local governments then are responsible for collecting the recyclable materials. Producers are obligated to recycle and reuse these materials. As an

What is being done at the Asahi Kasei Group with regard to endocrine disrupters?

What measures is the Asahi Kasei Group taking to comply with mandatory recycling of containers and packaging?

Q 1

Q 2

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What is the Asahi Kasei Group doing to promote the recycling of plastics?

Q 5

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What is the Asahi Kasei Group doing in relation to the issue of dioxin emissions from incinerators?

What is the Asahi Kasei Group doing with regard to the control of stratospheric ozone layer-depleting substances?

Q 4

What measures is the Asahi Kasei Group taking related to the control and management of PCBs?

alternative to recycling the materials themselves, producers may consign recycling work to the Japan Container and Packages Recycling Association (JCPRA). The Asahi Kasei Group fulfills its obligation to recycle packaging for its consumer products through a consignment agreement with the JCPRA.

We are working in cooperation with a wide variety of related parties to promote the establishment of a practical recycling system, and are participating in the Plastic Waste Management Institute’s research on plastic recycling technology. At the same time, we are independently working to develop easily recyclable materials, and technologies for the utilization of recycled materials.

We have also sought to develop technologies to enable a reduction of the amount of plastic waste generated during the production process, and technologies to recycle plastic waste as feedstock for reuse.

For example, many common plastic moldings such as TV housings use halogen compounds as flame retardants for improved safety. Plastic wastes containing these compounds are difficult to recycle, and so have generally been landfilled. The Asahi Kasei Group has developed flame-retardant plastics which use no halogen compounds as flame retardants.

We are also developing compatibilizers which will enable scrap plastic to be mixed with virgin plastic for recycling. As an example of plastic recycling in commercial use, scrap polyethylene terephthalate (PET) resin from bottles and film is broken down into its constituent monomers, which are then used for the production of polyester filament at our Polyester Plant in Nobeoka.

When new waste disposal regulations were enacted in 1997 specifying dioxin emission levels from industrial incinerators, we surveyed emissions from all 48 incinerators operated the Asahi Kasei Group, including small-scale incinerators (50 kg/hr capacity or less) to which the 1997 waste disposal regulations did not apply. To ensure that emissions from all of our incinerators would comply with the regulatory limit, we decided that we would cease using any incinerator which could not be brought into compliance.

Results of our survey indicated that none of our

incinerators exceeded the regulatory limit. In anticipation of the structural and control standards which will come into effect in November 2004, we have reduced the number of incinerators to 22, and an program to achieve full compliance with the new standards is progressing.

Condensers, transformers, and ballasts from disused fluorescent lamps have been recorded in a ledger and stored under strict control. In light of the guidelines published jointly in fiscal 2000 by the Ministry of the Environment and the Ministry of Economy, Trade and Industry for surveying the use and storage of ballasts with PCBs, we conducted a renewed survey which indicated that there is a possibility that some fluorescent lamp ballasts still in use may contain PCBs. We will systematically replace these fluorescent lamps, and ballasts with PCBs will be stored safely until an effective means of disposal is available.

Of the stratospheric ozone layer-depleting substances defined by law, those handled in the Asahi Kasei Group are mostly used as freezer refrigerants. Some are also used as solvents and cleaning agents. Refrigeration equipment is being replaced or modified with the latest technology for operation without refrigerants specified as ozone-depleting. We are also conducting research on the substitution of solvents and cleaning agents, and plan to cease using ozone layer-depleting substances when technology for their substitution is established.

“Green procurement” is an aspect of our Responsible Care program which forms a natural extension of our long-standing safety management system for procurement. When purchasing feedstocks, the dangers and hazards of the material and relevant regulations are researched and confirmed, and where

Q 7 What is the Asahi Kasei Group doing to advance “green procurement”?

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Q 9

What research and development is the Asahi Kasei Group performing related to environmental protection?

Is the Asahi Kasei Group implementing life cycle assessment (LCA)?

Q 8

deemed necessary purchase is foregone or appropriate strict control measures are instituted to ensure environmental integrity as well as legal compliance.

“Green procurement” as presently implemented includes the following measures:• Selection of suppliers who demonstrate outstanding

efforts for environmental preservation.• Purchase of “green” office supplies, such as 100%

recycled paper.• Use of recycled feedstocks, such as purchase of

post-consumer PET bottles for chemical recycling to produce polyester filament.To further advance “green procurement”

measures, we are preparing a Green Procurement Guideline. In determining the standard for “green” products appropriate for the Asahi Kasei Group, points of reference include products bearing the “Eco Mark” logo, the database of the Green Purchasing Network, and the purchasing specifications set forth in the Law on Promoting Green Purchasing.

The Asahi Kasei Group has long worked to develop technology which would contribute to environmental protection, and as shown in the Environment-friendly Products and Technologies section of this report, these efforts have yielded a variety of results. In addition, the Corporate Research and Development Administration is presently conducting research in several areas which are relevant to environmental protection.

These include development of basic technology for water treatment using microorganisms with water purifying activity in place of chemical agents, and development of an anisotropic conductive film used for electrical connections in place of solder to prevent lead pollution. To mitigate the amount of waste, a variety of applications in addition to construction materials have been developed to effectively utilize sludge generated in the production of autoclaved lightweight concrete panels.

For energy conservation and clean energy, we have commercialized a phenolic foam insulation panel with outstanding thermal insulation performance in construction applications. We are also developing a proton exchange membrane for use in polymer electrolyte fuel cells, a promising next-generation clean energy source.

In addition, microanalysis technology which enables analysis of samples of extremely low concentration has been established. Applications will include endocrine disrupters and substances associated with sick house syndrome. Our Corporate R&D Administration is guiding all effort in R&D and new business development by the concept of “green and sustainable technology” to achieve resource

conservation, energy conservation, and waste reduction. Asahi Kasei also supports research related to environmental preservation conducted by universities and other research bodies.

In the Asahi Kasei Group, we have performed studies using LCA and life-cycle energy assessments for our food wrapping film and housing products. Based on a product's function and performance characteristics, LCA is a method of evaluation of the environmental burden of a product throughout its life cycle - from the procurement of raw materials, through production, distribution, and use, to disposal. We believe LCA is potentially an effective tool for comparing the environmental impact of different products.

Recently, purchasers have begun including consideration of environmental impacts in the selection of products, but an objective determination of which among several products is most environment-friendly can be difficult. Concepts such as LCA can be very useful in assisting this process. Unfortunately, LCA is still under development, and sufficient data has not yet been compiled for its use to be practical at present.

Despite the challenges, we believe that concepts such as LCA to evaluate the environmental impact of products over their life cycle are important, both for consumers when they choose products and for manufacturers when they develop new products.

48

Independent Review

Scope and Objectives of VerificationThis Responsible Care Report Verification is performed with respect to the Responsible Care

Report 2002 Edition (“the Report”) prepared by Asahi Kasei Corporation, with the scope of verification as shown below, with the objective of expressing an opinion from the perspective of a chemical industry specialist. The Responsible Care Verification Center also holds the objective of contributing to a heightening of the level of Responsible Care activities of the corporation subject to examination, as the Report is positioned as reporting on the state of implementation of its Responsible Care activities.

In fiscal year 2002, the verification system is in a period of preparation, and verification is implemented as part of a pilot phase. Further, environmental accounting has not been included in this verification.

Scope of Verification1. The appropriateness and reasonableness of methods of calculation and aggregation of

performance indices (numerical values), and the accuracy of numerical values.2. The accuracy of information other than performance indices (numerical values).3. Evaluation of Responsible Care activities.

Verification Procedures• At the corporate level: Examination of methods of aggregation and compilation of performance index

data reported from each site. Confirmation of the veracity of reported information by interviewing management and compilers of the Report, and examining internal documents.

• At the site level: Evaluation of methods of calculation and aggregation of performance index data and accuracy of numerical values by interviewing each responsible party and examining internal documents. The Fuji Office was selected for verification of performance indices by sampling.

Opinion1. The appropriateness and reasonableness of methods of calculation and aggregation of performance

indices (numerical data), and the accuracy of numerical values.• Performance indices contained in the Report have been disclosed following a reasonable and

proper process of calculation and aggregation. No important matters warranting correction are believed to exist.

• Regarding the scope of energy consumption, consideration of energy aside from that subject to the Energy Conservation Law has been left as a matter for further study.

2. The accuracy of information other than performance indices (numerical values).• Information contained in the report has been confirmed to be accurate with respect to supporting

internal documents. Some slight inaccuracies were found in the draft stages but have already been corrected, and no important matters warranting correction are believed to exist at present.

3. Evaluation of Responsible Care activities.• The Asahi Kasei Responsible Care Principles, the review of the results of Corporate Responsible

Care Audits by the Responsible Care Committee, the Asahi Kasei Responsible Care Symposium, and the Responsible Care Management System are functioning properly, and various performance indices are improving as a result.

• Notable leading-edge Responsible Care measures include chemical recycling of PET bottles as a measure for environmental preservation, and the personal diet management system as a measure for workplace safety, hygiene, and health.

[translation from Japanese]

June 28, 2002Responsible Care Verification Center

Chief DirectorYasuo Tanaka

To: Kazumoto Yamamoto, President Asahi Kasei Corporation

Printed on recycled paper 02.10 (SN)

Hibiya Mitsui Building1-2 Yurakucho 1-chome, Chiyoda-ku

Tokyo 100-8440, Japan

Environment & Safety DepartmentPhone: +81-3-3507-2192 Fax: +81-3-3507-2452

URL: http://www.asahi-kasei.co.jp/

Published October 2002

TM: Trademark or registered trademark of Asahi Kasei Corporation or third parties granting rights to Asahi Kasei Corporation.

Please direct any questions or comments regarding this pamphlet to:

We publish this report in the hope that it will serve to bring greater understanding and appreciation for the ESH efforts which constitute our Responsible Care program, the results we have achieved, and the progress which is under way. Our primary objective is that information be presented fairly and accurately; compromises have inevitably been made in terms of scope and comprehensiveness for the sake of concision and clarity.

If there are any questions or points of interest which we have failed to answer or address, or if you find this report or our ESH program lacking in any regard, we would appreciate if you would take the trouble to let us know by fax (a fax form is provided on the reverse of this page for your convenience). Any feedback would be most welcome.

Asahi Kasei CorporationEnvironment & Safety Department

Fax: +81-3-3507-2452www.asahi-kasei.co.jp/

Your comments and opinions are welcome.

FAX : +81-3-3507-2452 Asahi Kasei CorporationEnvironment & Safety Department

Do you find the content of the report in any way insufficient or in need of improvement? Is there any subject matter which you would like to see treated in greater detail? Please comment:

What is your impression of our Responsible Care program?

Thank you for your cooperation. We would appreciate if you would also fill in the following:

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