Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Safety
• Health
• Resource Conservation
• Recycling

Environmental Achievements

• Reduced energy consumption by 9% compared to 2003 (Basic Unit for Energy index)
• Reduced industrial waste disposal by 12% compared to 2004
• Reduced CO2 emissions (including purchased electric power)
• Complete transition to tar-free products by April 2006
• Significant reduction of waste paint cans through IBC system (approx. 2 million cans in 5 years)
• Development of eco-friendly marine paints (tin-free, copper-free, anti-fouling agent free)
• Development of eco-friendly industrial paints (low VOC, heavy metal free)

Social Achievements

• Implementation of Coatings Care program
• Improved workplace safety (though with an increase in accidents in 2006)
• Community engagement through participation in local events and volunteer work
• Distribution of Environmental Report to neighboring communities
• Employee health initiatives (telephone health counseling, mental healthcare counseling)

Governance Achievements

• ISO 14001 certification for Industrial Paint Division, Marine Paint Division in process
• ISO 9001 registration for multiple subsidiaries
• Compliance with PRTR regulations
• Establishment of Coatings Care committees and associated organizations

Climate Goals & Targets

Environmental Challenges

• Increase in occupational accidents in 2006
• Meeting reduction targets for some PRTR substances due to increased sales and product mix
• Complete elimination of lead and chromium from paints (still in progress in 2007)

Mitigation Strategies

• Strengthening safety management to achieve zero occupational accidents
• Proactive actions to reduce VOC emissions
• Continued efforts to reduce the use of PRTR substances
• Phased replacement of products containing lead and chromium

Supply Chain Management

Responsible Procurement

• Procurement of green products (lead & chromium free paints)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 14001, ISO 9001, PRTR

Certifications: ISO 14001, ISO 9001

Sustainable Products & Innovation

• Eco-friendly marine paints
• Eco-friendly industrial paints
• IBC system

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Safety
• Health
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Reduced waste cans through the IBC system
• Reduced industrial waste generated by 36% compared to FY2010
• Reduced energy consumption per production unit during manufacturing by 6% compared to the previous fiscal year
• Reduced PRTR material emissions by 6t compared to the previous fiscal year
• Reduced the ratio of hazardous substances in products supplied compared to FY2010

Social Achievements

• Provided safety education concerning the treatment of materials for employees
• Provided training courses in each plant for employee health management
• Donated to various community initiatives (e.g., school repairs in Thailand, flood relief in Thailand, donations to villages near factories)
• Participated in community clean-up activities

Governance Achievements

• Established the “Rules and Basic Policy for Establishing Internal Control System”
• Established the “Code of Conduct for CMP Group Directors and Employees”
• Implemented wide-ranging measures in response to potential large-scale natural disasters
• Implemented a chemical substance management system

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption from increased transportation using small trucks
• Dust explosion at Ohtake-Meishin Chemical Co., Ltd.
• Failure to achieve target reduction of toluene, xylene, and ethyl benzene in products

Mitigation Strategies

• Switching commercial vehicles to low fuel consumption vehicles
• Clarifying the cause of the explosion and taking corresponding safety measures
• Continuous efforts to reduce hazardous substances in products

Supply Chain Management

Supplier Audits: 51% of raw material manufacturers surveyed were ISO 14001 certified

Responsible Procurement

• Green Purchasing policy
• Survey of suppliers' green procurement

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• SEAFLO NEO SL fuel-saving anti-fouling paint
• NOVA SUPERECO water ballast tank paint
• BANNOH 1500 universal primer
• SEA GRANDPRIX 1000L anti-fouling paint
• Solvent-free paints
• Water-based paints
• Low-VOC paints