Environmental Safety Action Plan

The Mitsubishi Gas Chemical Company (MGC) supports the main ideas of sustainable development and the creation of a recycling-based society set forth in the declaration agreed on by the nations in the world at the Environmental Summit held in Rio de Janeiro in 1992. Accordingly, MGC has been promoting the Responsible Care initiative by participating in the Japan Responsible Care Council (JRCC*) since its inception, becoming a member, and establishing an Integrated Safety Management System.

Responsible Care is the chemical industry's, including MGC, voluntary activities to harmonize business activities with global environment preservation through ensuring environment, safety and health in all stages of chemical substance life cycles from development, manufacture, distribution, use and final consumption to disposal.

^* Operated as the Responsible Care Committee of the Japan Chemical Industry Association since April 2011.

RC Promotion System

MGC promotes Responsible Care on the basis of our Policies on Environment and Safety. We endeavor to make continuous improvements through the PDCA cycle based on RC medium-term plan targets and annual activity targets approved by environment and safety meetings chaired by the President.

RC Audits and Environment and Safety Audits

MGC conducts RC audits at plants and environment and safety audits at Group manufacturing companies to assess the status of progress in action plans and evaluate efforts.

RC Medium-term Plan 2023 (2021-2023)

MGC adopted the Responsible Care Medium-term Plan and set Responsible Care Mid-term Targets and is making efforts to achieve those targets in order to promote responsible care.

Category of Activities	Medium-Term Plan (♦Grow UP 2023 KPI; Other: RC target)
Occupational Health and Safety	Aim to eliminate occupational injuries at the worksites of MGC and its partner companies. Visualize the factors that directly and indirectly affect occupational safety through various evaluation methods and build foundations for improvement. Quantitative occupational health and safety targets until 2023 ♦Serious occupational injuries^*1: 0 Lost time injuries and non-lost time injuries at MGC: 0 Cooperating company frequency rate: 0.3 or lower; Severity rate: 0.003 or lower
Process Safety and Accident Prevention	Aim to eliminate accidents in the workplace. Visualize the factors that directly and indirectly affect process safety and accident prevention through various evaluation methods and build foundations for improvement. Quantitative process safety and accident prevention targets until 2023 ♦Serious accidents^*2: 0 ICCA annual score: 0 (for both MGC and cooperating companies)
Environmental Conservation	Aim to protect the natural environment and contribute to communities through business activities. From those results, improve MGC's reputation in society. Qualitative and quantitative environmental conservation targets until 2023* (1) ♦Reduce greenhouse gas (GHG) emissions* by 28% compared to fiscal 2013 ♦Reduce GHG emissions intensity* by 19.9% compared to fiscal 2013 ① Continuously reduce emissions by 4,000 t-CO₂e/year ② Completely eliminate heavy oil used for in-house power generation and in boilers, etc. (Mizushima Plant, Yokkaichi Plant) ③ Reduce the GHG emissions coefficient for purchased electric power (0.45; Mizushima Plant) ♦④ Introduce 10% renewable energy to purchased electric power (all business sites) (2) Zero emissions of waste ♦Waste zero emissions rate^3: 0.3% or less (3) Reduce releases of chemical substances subject to the Pollutant Release and Transfer Register system* by 10% compared to 2020 (4) Water resource conservation Water reuse rate: 95% or higher Identify water risk (domestic manufacturing sites) (5) Biodiversity conservation "Bookcase for Biodiversity" donation program: Total of 10 instances *Establishment of "actual sites" of biodiversity: 1 installation
Chemical and Product Safety	Clarify the properties and handling methods of chemicals and products to protect the safety and health of all handlers and the environment. Quantitative chemical and product safety targets until 2023 (1) Conduct phased safety evaluations in product development (ongoing) Review new product launches and market development: 100% (percentage of products) (2) Promote risk assessment and risk management of handled products (ongoing) Product safety training: 100% (percentage of members of the MGC Group Environment and Safety Council) (3) Ensure that applications and registrations are carried out in accordance with the chemical substance management laws and regulations of each country Chemical substance registrations under the systems for management of chemical substances in each country: 100% (percentage of products) (4) Operation and deployment of automated SDS production system **Preparation and delivery of safety information (SDS): 100% (percentage of products)
Safe Transport and Storage of Chemicals	Aim to eliminate accidents and problems when transporting and storing chemicals. (1) Regularly analyze problems that occur when transporting and storing chemicals and distribute results to all relevant workplaces (2) Share information on the safe transport and storage of chemicals with the logistics departments of each group company (3) Closely monitor shipments of chemicals to final destinations and make improvements when necessary
Stakeholder Relations	Aim to develop an improved reputation among stakeholders and build trust.
Responsible Care Initiatives and Management	Aim to promote environmental and safety activities across the entire MGC Group. Reinforce communications within the Group and promote security, process safety and disaster prevention , and environmental management.
Responsible Care Initiatives and Management	Make continuous improvements to responsible care management systems.

*1 Disability eligible for, or possibly eligible for disability compensation involving lost work accidents, fatal accidents and accidents resulting in permanent inability to work, and those involving four or more lost work days
*2 Accidents and major workplace accidents which threaten third parties, including localized environmental pollution and accidents affecting local residents
*3 Final disposal of waste/waste generated

Results and Plans for RC Activities at MGC

MGC assesses plan results and implements the PDCA cycle for application to future plans in order to promote responsible care

This data was reported in prior issues of the CSR Report up to 2016.

Quantitative Environmental Conservation Targets through Fiscal 2020 (RC Medium-term Plan 2020: 2018–2020)

1. Reduce the energy intensity to 89% or lower compared with fiscal 1990 level.
2. Reduce GHG emissions intensity to 66% or lower compared with fiscal 1990 level (90% or lower compared with fiscal 2016 level).
Reduce GHG emissions volume by at least 320,000 tons (CO₂ equivalent) compared to fiscal 1990 (reduce by at least 100,000 tons compared to fiscal 2016).
3. Zero emissions of wastes: 0.3% or less final disposal of generated wastes, by weight).
4. Reduce emissions of PRTR substances by 10% compared with fiscal 2017.

Results Report on RC Medium-term Plan 2020 (2018–2020) for Quantitative Targets of Environmental Conservation (Non-consolidated)

1. As a result of initiatives to reduce energy consumption in the plant manufacturing sector , the energy intensity for fiscal 2020 was 98% compared with the fiscal 2013 level. Regarding energy saving measures, measures such as renewal of cogeneration system facilities , exhaust heat recovery, and introduction of advanced control were implemented.

2. As a result of initiatives to reduce GHG emission in the plant manufacturing sector in spite of the impact of COVID-19, the GHG emissions intensity for fiscal 2020 was 94% compared with the fiscal 2013 level. As for the absolute amount of GHG emissions, the actual results for fiscal 2020 were 780,000 t-CO₂ equivalent and a reduction of 330,000 t-CO₂ compared to fiscal 2013.

Response to Climate Change (Disclosure Based on the TCFD Recommendations)

Greenhouse Gas Emission Reduction

3. The zero emissions rate of wastes for fiscal 2020 was 0.51% for MGC alone, and the zero-emission target of RC Medium-term Plan 2020 could not be achieved. Zero emissions have not been achieved since fiscal 2014. This is the effect of disposal by landfilling since waste catalyst and activated sludge that was previously sold for value was no longer accepted as valuable.

Waste Reduction and Resource Recycling

4. The emissions level of substances subject to notification under the PRTR Law was 277 tons in fiscal 2020, an increase of around 21% compared with fiscal 2017 levels. As for RC Medium-term Plan 2020, the target of 10% reduction compared to fiscal 2017 was not achieved. The main reason is an increase in the production volume of some products.

Annual emissions performance for PRTR-targeted substances (Non-consolidated)

Annual trends of emissions (in detail)

Results for fiscal year	2017	2018	2019	2020
Emissions/atmosphere (tons)	213.3	226.7	270.1	266.4
Emissions/waters (tons)	15.1	7.5	9.7	10.9
Emissions/soil (tons)	0	0	0	0
Emissions (tons)	228.4	234.2	279.8	277.3
Percentage change	BM	103%	123％	121％

Annual trends of emissions (total)

* The PRTR data for fiscal 2019 has been reviewed and the figures have been revised.