Evaluation Results for FY 2023
and CSR Activity Policies for FY 2024

Management Systemand Organizational Governance

Targets for FY 2023 (Plan)		Results in FY 2023 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2024 (Plan)
(1) Proper implementation	1) Continuous improvement using the PDCA cycle	1) Continued implementation in accordance with the management system. Implemented 12 of 15 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

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

Environmental Protection

Targets for FY 2023 (Plan)	Results in FY 2023 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2024 (Plan)
(1) Environmental abnormalities : Zero events	Not achieved: 2 environmental abnormalities; Takaoka Plant: Release of acidic wastewater (pH 1.1) Takaoka Plant: Disposal of fluorocarbon-containing equipment without extracting fluorocarbons		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 2023 (Plan)		Results in FY 2023 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2024 (Plan)
(2) Energy	1) Energy intensity (logistics excluded) : Annual improvement of 1% (based on production)	1) Achieved: 0.4669 kL/t (10% decrease) (Changed calculation method for energy intensity in line with business structure reforms at the Nihongi Plant)		1) Promote energy saving through execution of the plan, and work to achieve a 1% reduction in energy intensity	1) Energy intensity (logistics excluded): Annual improvement of 1% (based on production)
	2) Energy intensity in logistics : Annual improvement of 1% (based on sales)	2) Achieved: 0.0133 kL/million yen (29% decrease) (due to a significant reduction in volume of transported products and materials in line with business structure reforms at the Nihongi Plant)		2) Examine modal shift (truck transport → rail transport)	2) Energy intensity in logistics: Annual improvement of 1% (based on sales)

KPI in red

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

Targets for FY 2023 (Plan)	Results in FY 2023 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2024 (Plan)
(3) Reduction of greenhouse gas emissions : Annual reduction of 1% Elimination of fluorocarbon leaks	Achieved: 143,162 t (22.4% decrease) (due to decrease in production volume in line with business structure reforms at the Nihongi Plant)		Implement improvement measures in conjunction with energy-saving activities. Conduct regular inspections and improvements of equipment that uses fluorocarbons	Reduction in greenhouse gas emissions: Nippon Soda Group GHG emissions: More than 20% reduction by FY 2026 compared with FY 2014 More than 30% reduction by FY 2031 compared with FY 2014 Eliminate fluorocarbon leakage issues

KPI in red

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

Targets for FY 2023 (Plan)	Results in FY 2023 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2024 (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 2023 (Plan)		Results in FY 2023 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2024 (Plan)
(5) Industrial waste	1) Amount of final disposal at landfill: Annual reduction of 3%	1) Not achieved: 472 t (855% increase) (due to disposal of raw materials in line with business structure reforms at the Nihongi Plant)		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) Not achieved: 3.9% (due to disposal of raw materials in line with business structure reforms at the Nihongi Plant)		2) Maintain the ratio of zero waste emissions at < 2.0%	2) Continuation of zero emissions
					3) Reduction of waste plastic: Curb emissions and promote recycling

KPI in red

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

Targets for FY 2023 (Plan)	Results in FY 2023 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2024 (Plan)
(6) Emissions of harmful substances into the atmosphere: Annual reduction of 1%	Achieved: 6.3 t (11% decrease) (due to decrease in 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 2023 (Plan)	Results in FY 2023 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2024 (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 2023 (Plan)		Results in FY 2023 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2024 (Plan)
(1) Major accidents at facilities: Zero accidents	1) Achieve zero major accidents at facilities	1) Achieved: NS: Zero incidents; Group companies: Zero incidents		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: Implemented at 3 sites. Cancelled at 4 sites (to prevent the spread of COVID-19). Safety audit prior to trial operation: 1, Special RC audits: 0		2) Continuous implementation of safety audits. Implement special RC 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 2023 (Plan)	Results in FY 2023 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2024 (Plan)
(2) 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, 2022; The 12th version was distributed. Conducted disaster drill and safety confirmation drill at each worksite (September 9).		1) Periodic revision and response to risks. Formulation of revised version (13th 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 2023 (Plan)	Results in FY 2023 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2024 (Plan)
(1) 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	(1) Not achieved: Absence from work: 12 (NS: 5, NS partners: 2, Group employees: 3, Group partners: 2) No absence: 7 (NS: 0, NS partners: 1, Group employees: 5, Group partners: 1)		(1) In FY 2024, 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	(1) 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
	1) 2) 3) 4) Cancelled. Meeting of the Central Safety and Health Committee: May 20, November 11		1) 2) 3) 4) Implement safety patrols in line with plans and conditions (scheduled)
	3) Occupational accident prevention survey: Takaoka Plant (December 15, 16)

KPI in red

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

Targets for FY 2023 (Plan)	Results in FY 2023 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2024 (Plan)
(2) Promote health and productivity 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), FY 2023 (91.3% 219/240 employees)		ー	Promote health and productivity management: Improve health literacy 1) Gauge current level of health literacy 2) Follow-up of those undergoing periodic medical examinations 3) Mental health checkups and follow-ups 4) Formulate and implement various health measures and educational programs
	1) 2) Guidance for improvement was offered by healthcare professionals and in-house health personnel		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) Implemented through mental health education and health lectures courtesy of occupational physicians		3) Continue activities

KPI in red

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

Logistics Safety,
Quality Assurance and
Consumer Issues

Targets for FY 2023 (Plan)	Results in FY 2023 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2024 (Plan)
(1) Logistics-related complaints : Zero complaints 1) Provide training and guidance to shipping companies. Investigate the causes of complaints, and implement thorough recurrence prevention measures	Achieved: Zero incidents		ー	(1) Logistics-related complaints: Zero complaints 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 3 sites).		1) Continue to conduct inspections and audits, 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 2023 (Plan)	Results in FY 2023 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2024 (Plan)
(2) 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	Achieved: 2 incidents (8 in FY 2022) Reduction rate of 75%		ー	(2) Annual decrease of 20% in number of incidents (compared with annual average number between FY 2020–FY 2022) 1) Reduce rank A and B risks in quality risk assessments (number of cases requiring improvement: 30% decrease) Strengthen measures to prevent human error Investigate the causes of complaints, and implement thorough recurrence prevention measures
	1) Achieved: A Rank: 1 incident ⇒ 1 incident (No decrease), B Rank: 299 incidents ⇒ 227 incidents (24% decrease)		1) Conduct at each site in a planned manner

KPI in red

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

Targets for FY 2023 (Plan)	Results in FY 2023 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2024 (Plan)
(3) 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 2023 (Plan)		Results in FY 2023 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2024 (Plan)
(1) Compliance with chemical-related laws and ordinances: Zero violations	1) Zero violations	1) Not achieved: 2 violations ・Head Office: Violation of Chemical Substances Control Law (TEAI-1000) (deviated from Official Gazette naming requirements) ・Head Office: Violation of Act on Securing Quality, Efficacy and Safety of Products Including Pharmaceuticals and Medical Devices (Nisso Melsan ST) (mislabeling of dosage and administration)		1) Prevent violations through continued recurrence prevention measures	1) Zero violations
	2) Strengthen the management of chemical substances with 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) Response to new JIS and revised PRTR Law: Switched to revised version of Safety Data Sheets (SDS) and Yellow Cards (YC) at all worksites. In addition to above, revised Japanese, US, and EU versions of SDS: 39 sheets; Revised version of YC: 12 cards at Head Office		2) Response to revised Industrial Safety and Health Act: Conduct advance briefings at each department and worksite at the beginning of FY 2024 ahead of response at the end FY 2024	2) Reinforce the management of chemical substances (domestic and overseas SDS/label system revisions in line with legal reforms, reinforce examinations and management systems for products containing chemical substances)
	3) Periodic educational programs on chemical substance control	3) Implemented operational training for chemical substance management systems at all company worksites ahead of the revision of the Industrial Safety and Health Ac		3) Continue activities. Aim to improve skills across the Company	3) Conduct periodic educational programs on chemical substance control
	4) Respond to the revisions of foreign laws and regulations	4) Responded almost according to the plan		4) Respond to revisions in EU REACH and other overseas law revisions in South Korea, China, and Taiwan, etc.

KPI in red

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

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

Targets for FY 2023 (Plan)		Results in FY 2023 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2024 (Plan)
(1) 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: 7 gatherings (cancelled to due to COVID-19)		1) Participate as and when held and aim to enhance communication	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 2023 (Plan)		Results in FY 2023 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2024 (Plan)
(2) Legal and other requirements 1) Zero violations		1) Not achieved: Head Office 2; Takaoka Plant 2; Odawara Research Center 1 Head Office 2: See 6. (1) 1); Takaoka Plant 2: See 2. (2) Odawara Research Center 1: Violation of Plant Protection Act (storage of prohibited import items outside of managed location)		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 2023 (Plan)		Results in FY 2023 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2024 (Plan)
(3) Creation of more opportunities for stakeholder engagement 1) Once a year at each worksite		1) Verification of the Integrated Report and ESG Data Book by the Japan Chemical Industry Association (JCIA) (October 4–11; Head Office, Chiba Plant). Implementation of occupational accident prevention survey at the Takaoka Plant (December 15, 16). Diagnoses of disaster prevention capability implemented by Sompo Risk Management at 3 worksites, cancelled at 4 worksites (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%

KPI in red

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

Human Rights/Labor Practices

Targets for FY 2023 (Plan)		Results in FY 2023 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2024 (Plan)
(1) Embracing diversity	1) Increase the employment rates of women, disabled people, older people, and overseas nationals	1) • New graduate hires: 12 new graduates were hired for major career track (5 women with foreign nationality) • Mid-career: Major career track: 7 persons • Reemployment: 13 people in April, 28 people in October, 100% of applicants • Employment ratio of persons with disabilities: 2.3%		1) • Continue recruitment taking diversity into account • Strengthen awareness and networks for the employment of people with disabilities	(1) Diversification of personnel	1) Engage in recruitment activities with a focus on diversity (women, people with disabilities, senior citizens, foreign nationals, etc.)
	2) Create a corporate culture where the abilities of a diverse range of workers can be maximized and improve the work environment	2) • Effort in the Career Development Support Program: No. of employees filling out our career vision sheet (233; submission rate: 98.7%) • Conducted awareness program for the Company newsletter		2) • Reinforce links between Career Development Support Program, education, and human resource placement • Continue to conduct awareness program in the Company newsletter		2) Adapt to diversity

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

Targets for FY 2023 (Plan)		Results in FY 2023 (Do)	Evaluation (Check)	Future Policies (Action)	Targets for FY 2024 (Plan)
(2) Rewarding workplace that employees can be proud of	1) Assess and improve the level of employee satisfaction	1) • Work-from-home system (officially commenced at Ohtemachi; up to two days per week) • Staggered start time system (officially commenced at Ohtemachi: two hours before/after regular start time) • Commenced trial of residence selection system (for agrochemical sales personnel) • Annual paid leave: No. of days available in first year 12 → 15 By-the-hour annual paid leave system: No. of days 2 → 5 • Expanded scope of childcare systems • Responded to revised Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members Established childcare leave consultation desk (April onward) Confirmed employees’ intentions to take childcare leave (April onward) Childcare leave at birth (October onward) • Promoted health and productivity management; Established Health and Productivity Management Promotion Section • Commenced Geppo engagement survey		1) • Confirm circumstances as necessary • Establish and further promote health and productivity management • Continue to gauge employee condition • Formulate and implement measures to improve engagement	(2) Engagement: Improve engagement	1) Gauge current level of engagement
	2) Strengthen in-house communications and enhance programs for human resources development	2) • Efforts in the Career Development Support Program • Implemented e-learning activities June: Diversity course: Learning through the promotion of active participation by women September: Basic course: Building resilience		2) • Reinforce links between Career Development Support Program, education, and human resource placement • Continue to conduct awareness program in the Company newsletter		2) Improve individual motivation, help individuals demonstrate their capabilities, and develop human resources
						3) Maintain and improve workstyles and productivity

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

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