Environmental Management

Environmental Management at Tokuyama

For Tokuyama, the pursuit of proactive initiatives to protect the earth’s environment is an important part of its corporate social responsibilities. Accordingly, the Company practices environmental management that takes into account the natural environment in all business activities.

Performance in Fiscal 2017

≫ Flow of Materials in Business Activities

Tokuyama works to accurately determine the input and output of materials for production, and regularly sets new targets aimed at reducing environmental impact. In fiscal 2017, Tokuyama achieved its per-unit energy consumption,waste recycling and zero emissions targets.
Regarding other performance data, Tokuyama has set a separate numerical management target for each department to maintain the current low-impact situation.

Flow of Materials in Business Activities Results of Environmental Protection Initiatives by the Tokuyama Factory in Fiscal 2014

Environmental Accounting

Tokuyama has been carrying out environmental accounting since fiscal 2000 in order to accurately determine and analyze the investment amounts and costs associated with its environmental conservation activities, thereby providing a sound basis for making environmental investments.

≫ Environmental Costs

Major environmental investment projects in fiscal 2017 included comprehensive drainage measures and establishment of waste storehouses.

≫ Economic Benefits of Environmental Management

In fiscal 2017, the economic benefits remained flat year on year, at approximately 1.5 billion yen.

Environmental Preservation Costs Economic Benefits in Fiscal 2014

Measures to Help Combat Global Warming

Tokuyama participates in Keidanren's Voluntary Action Plan on the Environment, as a member of one of the industries covered by the Action Plan. It is via this Action Plan that Tokuyama is working to achieve its 2020 emissions reduction target. Tokuyama is making steady progress in conserving energy throughout its business activities, and supporting efforts by employees to save energy
at home.

≫ Promoting Energy Conservation

Tokuyama consumes a vast amount of energy to manufacture its core products such as caustic soda, cement, and polycrystalline silicon. It also emits carbon dioxide (CO2), one of the greenhouse gases, primarily in its burning of fossil fuels and decarboxylation of limestone, which is used as a raw material for cement production.

The Company is working to reduce CO2 emissions by implementing energy conservation measures, including upgrading to more energy-efficient equipment. The Tokuyama Factory accounts for more than 99% of the Company’s total energy consumption, and it has a target of reducing its perunit energy consumption by 3.0% by fiscal 2020, from 2005 levels. The factory has also launched a project to improve per-unit energy consumption, in order to reduce CO2 emissions even further. In fiscal 2017,
the factory’s per-unit energy consumption came in at 9.5% below the 2005 level thanks to steady
energy-saving efforts, robust production, changing trends in the heating value of coal, and utilization of biomass fuels.

Unit Energy Consumption Index Energy Consumption

≫ Amounts of Atmospheric Emissions

In order to reduce emissions of sulfur oxides (SOx), nitrogen oxides (NOx), and soot into the atmosphere, Tokuyama equips its boilers, cement kilns, and other facilities that generate these substances with emission control systems,including flue gas desulfurizers, denitration equipment, low-NOx burners, and high-performance dust collectors. In fiscal 2017, emissions of SOx, NOx and soot increased in accordance with higher operating rates for emitting facilities.

≫ Emissions of Pollutant Release and Transfer Register(PRTR*) Substances

Emissions in fiscal 2017 were about on par with the average of recent years past.

*The PRTR system collects and publishes data on the sources of designated harmful chemical substances and the amounts of these substances discharged in the environment or transported from production sites as part of waste matter.

≫ Amounts of Hazardous Air Pollutant Emissions

Tokuyama generates chloroethylene and three other substances that are subject to voluntary controls under Japan’s Air Pollution Control Act. The Company has formulated a voluntary action plan and carries out ongoing measures for reducing emissions of these substances.

≫ Amounts of Industrial Effluent and Wastewater

The Tokuyama Factory follows a stringent system for monitoring industrial effluent and purifying wastewater using treatment equipment in order to comply with regulatory standards and limits set by the local government, as well as the Company’s own standards, which are even stricter. The factory also employs activated sludge treatment facilities for reducing the discharge of nitrogen and phosphorous and meeting chemical oxygen demand (COD)* regulations for overall water quality.
In fiscal 2017, COD and phosphorus emissions remained level year on year. Nitrogen emissions increased due to malfunctioning of wastewater treatment equipment.

*Chemical oxygen demand is an indicator used to measure water quality, and refers to the amount of oxygen required to oxidize organic compounds in water.

Energy Consumption Energy Consumption Energy Consumption Energy Consumption Energy Consumption Energy Consumption

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