Evaluation Results for FY 2022
and CSR Activity Policies for FY 2023

Management Systemand Organizational Governance

Targets for FY 2022 (Plan)		Results in FY 2022 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2023 (Plan)
(1) Proper implementation	1）Continuous improvement using the PDCA cycle	1）Continued implementation in accordance with the management system. Implemented 7 of 11 items planned for regular Group company RC audit		1）Implement internal audits, ISO maintenance/renewal reviews as planned Adjust dates and implement Group company regular RC audits	1）Continuous improvement using the PDCA cycle
	2）Strengthen measures to prevent problems caused by human error	2）Targets for each worksite and Group company were determined and measures to achieve them were strengthened		2）Continuous correction and education will be promoted throughout the Group to help employees recognize how to prevent human error	2）Strengthen measures to prevent problems caused by human error

Achieved　◎：≥ 90% ○：80-90% 　　△：60-80% 　　×：≤ 60%

Environmental Protection

Targets for FY 2022 (Plan)	Results in FY 2022 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2023 (Plan)
(1)Environmental abnormalities ：Zero events	Not achieved: 1 environmental abnormality; Takaoka Plant: Wastewater from Sluice Pipe 1 deviated from BOD values		Continue activities to prevent environmental problems according to the CSR Action Plan	Environmental abnormalities: Zero events

KPI in red

Achieved　◎：≥ 90% ○：80-90% 　　△：60-80% 　　×：≤ 60%

Targets for FY 2022 (Plan)		Results in FY 2022 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2023 (Plan)
(2) Energy	1）Energy consumption rate (logistics excluded) ：Annual improvement of 1% (based on production)	1）Achieved: 0.3666 kL/t (1.2% decrease) (Due to increased production and improved production efficiency at 3 plants)		1）Promote energy saving through execution of the plan, and work to achieve a 1% reduction in energy consumption rate Examine calculation method for energy consumption rate for the Nihongi Plant and Takaoka Plant	1）Energy consumption rate (logistics excluded): Annual improvement of 1% (based on production)
	2）Energy consumption rate in logistics ：Annual improvement of 1% (based on sales)	2）Not achieved: 0.0188 kL/M (1.4% increase) (Due to an overall recovery in transport volume of products for which demand had dropped the previous year due to the pandemic)		2）Examine modal shift (truck transport → rail transport)	2）Energy consumption rate in logistics: Annual improvement of 1% (based on sales)

KPI in red

Achieved　◎：≥ 90% ○：80-90% 　　△：60-80% 　　×：≤ 60%

Targets for FY 2022 (Plan)	Results in FY 2022 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2023 (Plan)
(3)Reduction of greenhouse gas emissions ：Annual reduction of 1%Elimination of fluorocarbon leaks	Not achieved: 189,617 t (1.1% increase) (Due to a rise in energy consumption in line with increased production at 3 plants)		Implement improvement measures in conjunction with energy-saving activities	Reduction in greenhouse gas emissions: Annual reduction of 1%. Eliminate fluorocarbon leaks

KPI in red

Achieved　◎：≥ 90% ○：80-90% 　　△：60-80% 　　×：≤ 60%

Targets for FY 2022 (Plan)	Results in FY 2022 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2023 (Plan)
(4)Water resources conservation: Monitor water resources and promote efficient water use	Implemented surveys of water usage, etc. (Compliance with regulatory and agreed values, efficient use)		Examine the establishment of specific targets	Water resources conservation: Monitor water resources and promote efficient water use. Maintain and improve water quality of worksite wastewater. Examine measures to reduce water use

Achieved　◎：≥ 90% ○：80-90% 　　△：60-80% 　　×：≤ 60%

Targets for FY 2022 (Plan)		Results in FY 2022 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2023 (Plan)
(5) Industrial waste	1）Amount of final disposal at landfill ：Annual reduction of 3%	1）Achieved: 51 t (32% decrease) (Takaoka Plant: Promoted waste recycling)		1）Implement measures to maintain achievement of the reduction target	1）Amount of final disposal at landfill: Annual reduction of 3%
	2）Continuation of zero emissions (≤ 2%)	2）Achieved: 0.6% (Takaoka Plant: Promoted waste recycling)		2）Maintain the ratio of zero waste emissions at < 2.0%	2）Continuation of zero emissions

KPI in red

Achieved　◎：≥ 90% ○：80-90% 　　△：60-80% 　　×：≤ 60%

Targets for FY 2022 (Plan)	Results in FY 2022 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2023 (Plan)
(6)Emissions of harmful substances into the atmosphere ：Annual reduction of 1%	Not achieved: 6.7 t (22% increase) (Due to increased production of products using harmful substances)		Implement reduction measures continuously	Emissions of harmful substances into the atmosphere: Annual reduction of 1%

KPI in red

Achieved　◎：≥ 90% ○：80-90% 　　△：60-80% 　　×：≤ 60%

Targets for FY 2022 (Plan)	Results in FY 2022 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2023 (Plan)
(7)Reduction of impact on biodiversity and ecosystems	Chiba Plant, Odawara Research Center, Nihongi Plant: Continued implementation Each worksite: Joined Honeybee Friendship Plan		Develop and implement activity plans	Continue activities that reduce impact on biodiversity and ecosystem

Achieved　◎：≥ 90% ○：80-90% 　　△：60-80% 　　×：≤ 60%

Process Safety & Disaster Prevention/ BCP

Targets for FY 2022 (Plan)		Results in FY 2022 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2023 (Plan)
⑴ Major accidents at facilities : Zero accidents	1）Achieve zero major accidents at facilities	1）Not achieved: NS: 0 incidents; Group companies: 1 incident (May 23: Isohara Plant, Nisso Fine: Damage to waste gas combustion furnace blower)		1）Continuous implementation of measures to prevent major facility accidents	1）Achieve zero major accidents at facilities
	2）Reduce the risk of major accidents at facilities in line with the Business Continuity Plan (BCP)	2）Diagnosis of disaster prevention capability: Cancelled (to prevent the spread of COVID-19). Safety audit prior to trial operation: 1, Special CSR audits: 1		2）Continuous implementation of safety audits. Implement special CSR audits when required	2）Reduce the risk of major accidents at facilities in line with BCP

KPI in red

Achieved　◎：≥ 90% ○：80-90% 　　△：60-80% 　　×：≤ 60%

Targets for FY 2022 (Plan)	Results in FY 2022 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2023 (Plan)
⑵ Maintain and improve BCP: Maintain and improve the BCP using the PDCA cycle 1）Undertake periodic reviews of BCP and implement risk reduction measures	1）Revised on April 1, 2021; The 11th version was distributed. Conducted disaster drill and safety confirmation drill using new system at each worksite (January 24, 2022).		1）Periodic revision and response to risks. Formulation of revised version (12th version). Continuous implementation of disaster drills.	1）Undertake periodic reviews of BCP and implement risk reduction measures

Achieved　◎：≥ 90% ○：80-90% 　　△：60-80% 　　×：≤ 60%

Occupational Safety and Health

Targets for FY 2022 (Plan)	Results in FY 2022 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2023 (Plan)
⑴ Occupational accidents resulting in an absence from work or no absence ：No accidents 1）Conduct risk assessments to reduce risks 2）Strengthen measures to prevent human error 3）Implement activities to ensure safety 4）Implement disaster prevention activities for young employees and less experienced employees Enhance experience-based education facility and system	Not achieved: Absence from work: 7 (NS: 0, NS partners: 0, Group employees: 6, Group partners: 1) No absence: 8 (NS: 3, NS partners: 1, Group employees: 4, Group partners: 0)		⑴ In FY 2023, each committee will continue to strive for countermeasures against human error and to further raise awareness of safety, and will continue to conduct disaster prevention activities	⑴ Occupational accidents resulting in an absence from work or no absence: No accidents 1）Conduct risk assessments to reduce risks 2）Strengthen measures to prevent human error 3）Implement activities to ensure safety 4）Implement disaster prevention activities for young employees and less experienced employees. Enhance experiencebased education facility and system
	1）2）3）4） Safety patrols conducted at 6 worksites. Meeting of the Central Safety and Health Committee: June 19, November 13		1）2）3）4）Relevant information will be shared among worksites
	3）Occupational accident prevention survey: Mizushima Plant (December 15)

KPI in red

Achieved　◎：≥ 90% ○：80-90% 　　△：60-80% 　　×：≤ 60%

Targets for FY 2022 (Plan)	Results in FY 2022 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2023 (Plan)
⑵ Promote health management: Improve rate of employees undergoing complete physical examinations Annual improvement of 5% 1）Follow‐up of those undergoing periodic medical examinations 2）Mental health checkups and follow‐ups 3）Mental and physical health education	Not achieved: FY 2020 (68.2% 197/289 employees), FY 2021 (92.7% 240/259 employees), FY 2022 (91.2% 238/261 employees)		ー	Promote health management: Improve rate of employees undergoing complete physical examinations: Annual improvement of 5% 1）Follow‐up of those undergoing periodic medical examinations 2）Mental health checkups and follow‐ups 3）Physical and mental health education
	1）2）Guidance for improvement was offered by healthcare professionals and in-house health personnel 3）Implemented through mental health education and health lectures courtesy of occupational physicians		1）2）Place greater emphasis on health guidance for those with abnormal findings in medical examinations; implement stress checks and provide care to highly stressed employees at an early stage 3）Examine online lectures by occupational physicians

KPI in red

Achieved　◎：≥ 90% ○：80-90% 　　△：60-80% 　　×：≤ 60%

Logistics Safety,
Quality Assurance and
Consumer Issues

Targets for FY 2022 (Plan)	Results in FY 2022 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2023 (Plan)
⑴ Logistics‐related complaints ：None 1）Provide training and guidance to shipping companies. Investigate the causes of complaints, and implement thorough recurrence prevention measures	⑴ Achieved: 0 incidents		ー	⑴ Logistics‐related complaints: None 1）Provide education and guidance to shipping companies Investigate the causes of complaints, and implement thorough recurrence prevention measures
	1）Provided education and guidance to shipping companies, etc. (total of 9 sites).		1）Continue to conduct inspections and audits of and provide education, etc. for shipping companies. Continue to make requests for improvement of delivery methods to lorry shipment customers. Acquire information through industry groups

KPI in red

Achieved　◎：≥ 90% ○：80-90% 　　△：60-80% 　　×：≤ 60%

Targets for FY 2022 (Plan)	Results in FY 2022 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2023 (Plan)
⑵ Product‐related complaints ：Annual reduction of 20% 1）30% reduction in rank A and B risks from the previous fiscal year through introduction of quality risk assessment. Strengthen measures to prevent human error. Investigate the causes of complaints, and implement thorough recurrence prevention measures	⑵ Not achieved: 8 incidents (8 in FY 2021) No decrease		ー	⑵ Annual decrease of 20% in number of incidents 1）30% reduction in rank A and B risks from the previous fiscal year through introduction of quality risk assessment Strengthen measures to prevent human error Investigate the causes of complaints, and implement thorough recurrence prevention measures
	1）Achieved: A Rank: 5 incidents ⇒ 0 incidents (100% decrease), B Rank: 337 incidents ⇒ 271 incidents (20% decrease)		1）Conduct at each site in a planned manner

KPI in red

Achieved　◎：≥ 90% ○：80-90% 　　△：60-80% 　　×：≤ 60%

Targets for FY 2022 (Plan)	Results in FY 2022 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2023 (Plan)
⑶ Consumer issues: Appropriately respond to consumer demand and requests from society 1） Appropriately respond to consumer demand and requests from society collected through consulting service response, sales promotions, and outreach	1） Handled by each business division as part of Social Activities. Promoted efforts to discover needs and enhance customer satisfaction through response to inquiries and sales promotion activities, etc.		1） Continue activities	1） Appropriately respond to consumer demand and requests from society collected through consulting desk, sales and product promotion activities

Achieved　◎：≥ 90% ○：80-90% 　　△：60-80% 　　×：≤ 60%

Chemical and Product Safety

Targets for FY 2022 (Plan)		Results in FY 2022 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2023 (Plan)
⑴ Compliance with chemical‐related laws and regulations: Zero violations	1） Zero violations	1）Not achieved: 3 violations ・ Nihongi Plant: Improper hazardous substance display (manufacturer/address) ・Takaoka Plant: Missed data in verification test for food additive product ・ Takaoka Plant: Manufacture and use of stimulant material (phenylacetic acid)		1）Prevent violations through continued recurrence prevention measures	1）Zero violations
	2）Strengthen the management of chemical substances by adopting a new chemical substance control system, etc. (switch to the revised JIS version of SDS, revise domestic and overseas SDS/label systems, reinforce investigation and management of products containing chemical substances)	2）Compatibility with revised JIS version: Improved ExESS defects, hosted supplementary briefings, requested SDS revision for all products, implemented SDS revision at all worksites		2）Switch Japanese SDSs to revised JIS version by May 2022. Create and present templates and examples of revised JIS version SDSs for developed products	2）Reinforce the management of chemical substances through new chemical substance management systems (switch to the revised JIS version of SDS, domestic and overseas SDS/label system revisions, reinforce examinations and management of products containing chemical substances)
	3）Periodic educational programs on chemical substance control	3）Implementation according to the plan		3）Continue activities	3）Conduct periodic educational programs on chemical substance control
	4）Actions to comply with revisions of foreign laws and regulations	4）Responded almost according to the plan		4）Respond to UK REACH in line with the UK’s withdrawal from the EU, and respond to other legal reforms	4）Comply with overseas legal reforms

KPI in red

Achieved　◎：≥ 90% ○：80-90% 　　△：60-80% 　　×：≤ 60%

Social Dialogue,
Community Involvement,
Fair Business Practices,
and Compliance

Targets for FY 2022 (Plan)		Results in FY 2022 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2023 (Plan)
⑴ Local gatherings and community involvement 1）Maintain a certain number of local gatherings and improve their contents(Target: More than 25/ year)		1）Not achieved: 0 gatherings (cancelled to due to COVID-19)		1）Implement according to the plan and circumstances in the next fiscal year	1）Maintain a certain number of local gatherings (continue dialogue with local related parties and organizations) and improve their contents

KPI in red

Achieved　◎：≥ 90% ○：80-90% 　　△：60-80% 　　×：≤ 60%

Targets for FY 2022 (Plan)		Results in FY 2022 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2023 (Plan)
⑵ Legal and other requirements 1）Zero violations		1）Not achieved: Nippon Soda: 4, Group: 4 Nippon Soda: See 2. (1) and 6. (1) 1 Nisso Fine (Group): Exceeded wastewater values (BOD, pH), violation of fluorocarbon-related law Nisso Metallochemical (Group): Defect on protective tool used to prevent hot water contact		1）Correct and improve violation matters and share information on the prevention of recurrences among worksites	1）Zero violations

KPI in red

Achieved　◎：≥ 90% ○：80-90% 　　△：60-80% 　　×：≤ 60%

Targets for FY 2022 (Plan)		Results in FY 2022 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2023 (Plan)
⑶ Creation of more opportunities for stakeholder engagement 1）Once a year at each worksite		1）Verification of the Integrated Report and ESG Data Book report by the Japan Chemical Industry Association (JCIA) (October 5–8; Head Office, Nihongi Plant). Implementation of occupational accident prevention survey at the Mizushima Plant (December 15). Diagnoses of disaster prevention capability by Sompo Risk Management were cancelled (to prevent the spread of COVID-19)		1） Examine the next fiscal year’s Integrated Report and ESG Data Book. Implement diagnoses of disaster prevention capability and occupational accident prevention surveys as planned in line with relevant circumstances (scheduled)	1） Once a year at each worksite

KPI in red

Achieved　◎：≥ 90% ○：80-90% 　　△：60-80% 　　×：≤ 60%

Human Rights/Labor Practices

Targets for FY 2022 (Plan)		Results in FY 2022 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2023 (Plan)
⑴ Embracing diversity	1）Increase the employment rates of women, disabled people, older people, and overseas nationals	1） ・New graduate hires: 9 new graduates were hired for major career track (1 woman with foreign nationality) ・Mid-career: Major career track: 4 persons ・Reemployment: 5 people in April, 12 people in October, 100% of applicants ・Employment ratio of persons with disabilities: 21.2%		1） ・Continue recruitment taking diversity into account ・Strengthen awareness and networks for the employment of people with disabilities	1）Increase the employment rates of women, disabled people, older people, and overseas nationals
	2）Create a corporate culture where the abilities of a diverse range of workers can be maximized and improve the work environment	2） ・Efforts in the Career Development Support Program: No. of employees filling out our career vision sheet (236) ・Conducted awareness program for the Company newsletter		2） ・Provide education including the results achieved and human resource placement through the Career Development Support Program ・Formulate and implement measures to boost employee engagement ・Continue to conduct awareness program in the Company newsletter	2）Create a corporate culture where the abilities of a diverse range of workers can be maximized and improve the work environmen

Achieved　◎：≥ 90% ○：80-90% 　　△：60-80% 　　×：≤ 60%

Targets for FY 2022 (Plan)		Results in FY 2022 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2023 (Plan)
⑵ Rewarding workplace that employees can be proud of	1）Assess and improve the level of employee satisfaction	1） ・ Commenced work-from-home trials (Ohtemachi) (up to two days per week) ・Improved wage curve among younger employees ・Commenced new evaluation system for management-level employees ・Added 1 holiday for plant workers ・Introduced by-the-hour annual paid leave system (2 days/year) ・Expanded scope of childcare systems ・Promoted health management Commenced presenteeism measurement Announced message from the president Announced map of initiatives Acquired White 500 certification for FY 2023		1） ・Improve work-from-home systems after implementation ・Confirm circumstances as necessary ・ Evaluate after first year of implementation ・Determine further expansion based on use ・Increase to five days from April 2022 (increase number of paid holidays granted to employees in their first year from April 2022) ・Expand further from April 2022 ・Launch dedicated organization from April 2022	1）Assess and improve the level of employee satisfaction
	2） Strengthen in‐house communications and enhance programs for human resources development	2） ・Revised management personnel system: Single-track (management emphasis) → Multi-track (management + highlevel specialist) ・Efforts in the Career Development Support Program: Conducted career interviews		2）・Confirm circumstances as necessary	2）Strengthen in‐house communications and enhance programs for human resources development

Achieved　◎：≥ 90% ○：80-90% 　　△：60-80% 　　×：≤ 60%