Environmental Report

Approaches to the Environment

Reducing of Environmental Load

Control on Emission of Chemical Substances

Based on the Law Concerning Reporting, etc. of Pollutant Release and Transfer Register (PRTR Law), Kuraray Group in Japan checks, records and reports relevant chemical substances to the national government of Japan. Kuraray Group similarly discloses on its website and other places emissions of chemical substances not only covered by the PRTR Law, but designated by the Japan Chemical Industry Association ( JCIA). In addition to them, persistent organic pollutants (POPs), volatile organic compounds (VOCs), hazardous atmospheric pollutants (HAPs) and particulate matter (PM) are considered to be chemical substances and Kuraray is taking action as explained in the table.

Classification Name of Substance Action Taken
POPs Polychlorobiphenyl (PCB) Storing, managing, reporting and processing to render harmless in accordance with the Law Concerning Special Measures against PCB Waste. (Fiscal 2027 is set as a time limit for harm-free processing)
Dioxin and the like Emissions are measured for individual plants and other business units (Please visit Kuraray website)
Substances other than the above Not applicable to Kuraray manufacturing and use
VOC Included as substances in the pollutant release and transfer register (PRTR) and emissions are measured and reported as PRTR substances. (Please visit Kuraray website for emissions by each plant)
PM Emissions of particles of soot are reported in Material Flow on page 17 of this report
PRTR Emissions of substances applicable to the law and to the list compiled by the Japan Chemical Industry Association are measured and reported (Please visit Kuraray website for emissions by each plant)

Trends in Chemical Substance Emissions at Kuraray Group

In fiscal 2016, emissions of PRTR substances of entire Kuraray Group in Japan totaled 957 tons (873 tons into atmosphere and 84 tons into water areas).

The “Environmental Efficiency“ of Kuraray Group in Japan improved by 26.7% compared with Fiscal 2010.

Even though the production volume has increased, we took measures not to increase emissions such as changing the production process from an organic solvent system to a water system.

The emissions of Kuraray overseas affiliates shows increasing trend due to incorporating new business through M& in overseas. However we are working on the control on emissions complying with the strict regulations for chemical substances of each country. Emissions of Kuraray overseas affiliates totaled 431 tons in fiscal 2016.

  • *Substances subject to the PRTR Act and substances designated by the Japan Chemical Industry Association

Reduction and Effective use of Waste, and Reduction of Landfill Waste

Since fiscal 2007, Kuraray Group in Japan has been maintaining “an effective utilization rate of waste: 90% or higher, and final landfill disposal rate: 1% or lower.” In fiscal 2016 also, these rates were maintained and the result of an effective utilization rate was 97.0% and final landfill disposal rate was 0.37%.

“Environmental Efficiency“ of fiscal 2016 decreased by 9.0% compared with fiscal 2010. Waste generation of Kuraray Group in Japan has shown increasing trend for the past few years due to the increase in production volume. However the plants and affiliates are making continuous efforts to maximally reduce waste generation such as by improving product yields and taking some measures.

Almost all of the additional volume of waste generation was recycled to the material or thermal resources which resulted in having kept high beneficial use rate of waste. Through this activity, we are taking care of not affecting to the external environment.

On the other hand, the production volume of Kuraray overseas affiliates is largely increasing due to incorporating new business through M&A (the volume tripled compared with fiscal 2010 including the raw material of Poval resin). The volume of waste generation also tripled in the same period in spite of making reducing efforts. For this reason, the “Environmental Efficiency” decreased by 41.7% compared with fiscal 2010. We will continue to work on watching future trend and taking reducing measures such as by optimizing the operating conditions and recycling materials.

The reason why the amount of waste generation of Kuraray overseas affiliates is very small compared with Kuraray group in Japan is that the utilities such as electricity are purchased from outside suppliers and that wastewater treatment is outsourced to outside disposal companies so that soot and incineration residues from boilers and sludge from wastewater treatment facilities are not generated physically. 2016.

Trends in the Amount of Waste Generation at Kuraray Group in Japan

Trends in the Amount of Waste Generation at Overseas affiliates

Trends in Waste Effective Utilization Rate at Kuraray Group in Japan

Trends in Final Waste Landfill Disposal Rate at Kuraray Group in Japan

Effective Utilization of Water Resources

Trends in Water Usage at Kuraray Group

Kuraray Group, including its overseas affiliates, is not engaged in production activities in areas in which water resources are scant and their business activities affect water sources of such areas. The volume of water intake (except seawater) of Kuraray Group in Japan totaled 73.1 million m3 per year and has been increasing in the past few years due to the increase in the production volume. Some Kuraray plants in Japan are reusing the water such as by recycling thermal resources from hot waste water and cooling water for boiler operation.

Even though Kuraray plants in Japan are located in good places in terms of water resources, we believe that it is necessary to conduct its business activities by considering the long-term prospects of water supply such as risk of water shortage caused by climate change due to global warming. We will keep track of water consumption trends while continuously reducing our water consumption.

Since fiscal 2014, water consumption of Kuraray overseas affiliates has been increasing due to incorporating new business through M & A inoverseas such as increase in the self-manufacturing ratio of raw material of Poval resin. As a result, the “Environmental Efficiency” decreased by 40.8% compared with fiscal 2010.

Environmental Activities

Kazuhiko Kugawa, Director, Primary Executive Officer

Our production plants inside and outside of Japan have acquired ISO 14001 (Environmental management systems) certification and are active in environmental conservation activities. In the five years leading up to 2015, the Kuraray plants in Japan reduced 140,000 tons-CO2e (target 100,000 tons-CO2e) through the use of wood biomass as fuel for in-house power generation, installation of high-efficiency gas engine generators and energy-saving activities. However, the reduction performance for the Kuraray plants in Japan remained low in 2016, 10,000 tons-CO2e compared with our target of 20,000 tons-CO2e. Effective measures to reduce global warming gases are decreasing, but the Kuraray Group will continue to reduce the emission through originality and ingenuity. At the same time, as a manufacturer of materials and intermediates, Kuraray will manufacture and provide materials and intermediates, which are required in building a low-carbon and low environmental-load society, at an environmental load as low as possible.