Sustainability

Policies

Sustainability Policy (Established July 1, 2022)

• We aspire to realize a “Sustainable Earth” and “Safe and Comfortable Life”.

• We will firmly maintain fairness and integrity in our activities to be a trustworthy company.

• Each of us will think and act proactively for a better future.

Based on our corporate philosophy of “Contributing to the preservation of the Earth and the prosperity of the human race,” sustainability at Zeon means achieving sustainable growth together with society. To achieve this, we will provide products and services that are valuable for solving global and social issues, build trust with our stakeholders through fairness and integrity and have each one of us act proactively thinking how to create a better future for the society and ourselves.

Explanation of the schematic diagramZeon explains the thinking behind its Sustainability Policy with the accompanying diagram. First, the inner arrows (1 and 2) show that, by helping to solve social issues and creating new value for society, Zeon can earn profits in return for the value it provides. Arrows 3 and 4 show that sustaining this virtuous cycle can lead to the sustainable development of society and Zeon’s continued growth. The handshake in the center symbolizes how realizing this virtuous cycle can further strengthen the relationship of trust between society and Zeon.

CSR Code of Conduct

As a member of the Zeon Group, I understand the Corporate Philosophy, the Sustainability Policy, and other corporate policies, and I will act in accordance with the following code of conduct:

Chapter 1. Compliance (Moral Awareness and Laws and Regulations)
(1-1 Things which each person values)
I will value moral actions and comply with laws and regulations of a country where the company conducts its business activities and the company rules.
(1-2 Labor laws and regulations)
(i) I will comply with labor laws and regulations, work rules and agreement voluntarily established between the employer and workers.
(ii) I will sufficiently manage working hours, rests, holidays and acquisition of leaves to prevent excessive labor.
(iii) I will not commit discrimination based on birth, nationality, race, ethnic group, creed, religion or sex/gender.
(1-3 Trade laws and regulations)
(i) I will comply with treaties, laws and regulations concerning trade.
(ii) When exporting products, goods, services, product recipes, methods of production, manufacturing plant designs, I will fully examine the limitation on use such as weapons development.
(1-4 Competition laws and regulations)
I will comply with competition laws and regulations for fair and free competition.
(1-5 Prohibition on unjust act)
I will not engage in a transaction through which I receive or give unjust benefit or gain for fair and free competition.
(1-6 Market rules)
I will not engage in a securities trading based on the internal information obtained in the course of business (insider trading).

Environmental Philosophy (Established August 2001)

1. Environmental protection is the mission of a company as a public institution of society. 2. Our fundamental belief is that environmental protection can be achieved through innovative technology. 3. Environmental protection is achieved when all employees embrace a sense of mission and take on challenges.

Safety Philosophy (Established March 1997)

1. Safety is the foundation of all business activities and takes precedence over all other considerations. 2. Our fundamental belief regarding safety is that all accidents can be prevented. 3. Safety is achieved through 5S practices and by ensuring that each individual takes responsibility for their actions.

  • *5S: Seiri (sort), Seiton (set in order), Seisou (shine), Seiketsu (standardize), and Shitsuke (sustain).

Responsible Care Policy (Established June 1998)

1. Prioritize the environment and safety
Protecting the environment and ensuring safety are prerequisites for all business activities and take precedence over all other considerations. We will continuously implement comprehensive accident-prevention measures and provide education and training to all employees in an effort to prevent safety and environmental accidents.

2. Collect and distribute the latest information on chemical products
We will collect, store and manage the latest information required for the appropriate handling, use and disposal of chemical products, and distribute this information to employees and users.

3. Minimize the discharge of toxic chemicals and waste
We will strive to develop technologies for reducing emissions of hazardous chemical substances and for reducing, recycling, and reusing waste.

4. Promote activities for conserving resources and energy
From the standpoint of preventing global warming as well, we will actively promote resource- and energy-conservation activities involving all employees, and we aim to dramatically reduce energy consumption through the development of original technologies.

5. Take the environment and safety into account when developing new processes and products and performing quality assurance
We will conduct thorough environmental and safety evaluations from the initial stages of research, develop technologies and products that take the environment and safety into account, and strive to maintain and improve their quality.

6. Live together with society
We will comply with environmental and safety regulations established by local communities, national and overseas authorities, and organizations to which we belong, and will cooperate with their activities. We will strive to communicate with local communities and society so that Zeon’s activities are accurately understood, and to further strengthen society’s trust in the Company.

7. Perform continuous improvements
We will continuously improve our environmental and safety management and technology through the operation of Responsible Care audits, the Safety Management System, an Environmental Management System based on ISO 14001, and an Occupational Health and Safety Management System.

Basic Policy for Quality Assurance

1. We contribute to society by providing high-quality products, goods and services with excellent reliability and safety to the market.
2. We fully understand and predict user demands and provide products, goods and services that users can use with satisfaction.
3. In each quality assurance step, we establish an internal system that can assuredly evaluate high-quality products, goods and services with excellent reliability and safety.
4. We establish technologies that can produce products, goods and services with the target quality in terms of reliability and safety.

Zeon Group Human Rights Policy (Established August 1, 2019, revised 2023)

We, the Zeon Group, are committed to fulfilling our corporate social responsibilities in respect of human rights and contributing to realizing a sustainable society, based on international codes of conduct on human rights, such as the Universal Declaration of Human Rights, the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work, and the UN Global Compact.

Respect for Human Rights

We will not tolerate acts of discrimination or harassment based on age, gender, place of origin, ancestry, nationality, disability, religion, creed, marital status, employment status, union membership, political views, or other differences. We also will not tolerate child labor, forced labor, or unjustly low-wage labor.

Collaboration with Stakeholders

We will encourage our customers, business partners and others to support this policy, and will strive to conduct our business activities in a way that shares our commitment to respect for human rights.

Prevention and Mitigation of Human Rights Violations

We will strive to identify adverse impacts on human rights that may result from our business activities, and to avoid or mitigate them.

Response to Human Rights Violations

Where it becomes clear that we have caused or contributed to an adverse impact on human rights, we will work to provide remedy through appropriate procedures.

Efforts on Human Rights Issues

We will provide appropriate education and training to our officers, employees, and others so that this policy is understood and implemented.

Disclosure of Information

We will report on our human rights initiatives under this policy through external communication channels such as our website and Integrated Report.

Sustainable Procurement Policy (October 2023)

Zeon Group conducts responsible procurement activities in accordance with its “Sustainability Policy,” and aims to realize a sustainable society throughout the supply chain.

1. Compliance with laws and social norms
We comply with laws and social norms and conduct fair procurement activities based on corporate ethics.

2. Optimal procurement of raw materials, products, and services
We strive to ensure the optimal procurement of raw materials, products, and services with respect to safety, quality, price, delivery schedules, supply stability, and technical capabilities so that we can provide better products.

3. Consideration for the global environment
We strive to procure raw materials, products, and services that have a reduced impact on the global environment, giving due consideration to environmental protection, resource conservation, and biodiversity.

4. Consideration for human rights
We respect human rights in our supply chain and strive to procure raw materials, products, and services sourced with due regard for human rights.

5. Promoting responsible mineral sourcing
We strive to procure minerals responsibly to avoid involvement in conflicts, environmental destruction, and human rights violations in conflict-affected and high-risk areas.

6. Appropriate management of information
Understanding the importance of confidential information obtained through procurement activities, we strive to use, manage, and protect it appropriately.

7. Open purchasing attitude and partnership
We seek business partners from a global perspective, strive to ensure fair, impartial, and transparent business opportunities, and build partnerships with our suppliers through dialogue to achieve mutual development and a sustainable society.

Sustainable Procurement Guidelines (October 2023)

Declaration for Health and Productivity Management (October 2021)

Our corporate philosophy is “Contributing to the preservation of the Earth and the prosperity of the human race.” This mission is embodied by each and every person working in the Zeon Group demonstrating their abilities and continuing to thrive. In order for us to continue contributing to a “Sustainable Earth” and the realization of a “Safe and Comfortable Life,” we will develop an environment in which employees, together with their families and colleagues, can be healthy in mind and body and can engage in rewarding work with a sense of happiness.

Code of Conduct for Well-being: “So That I Can Be Happy”

1. Take responsibility for and proactively commit to working in a healthy, happy, and fulfilling manner. 2. Understand your own state of health through regular health checkups, and receive appropriate feedback and guidance. 3. Reflect on your daily habits, including whether you are getting adequate sleep and eating well. Recognize changes in your condition early and practice self-care. 4. Pay attention to the environment around you and work day to day to make it safer and more comfortable. 5. Know which resources around you can support you when needed.

Joint Declaration of Labor and Management for Corporate Development

1. Labor-management relations shall be based on mutual understanding and trust. 2. Labor and management shall steadily fulfill their respective roles in building a company of which we can be proud and strengthening the corporate foundation. 3. Labor and management, as good partners, shall seek to reform the corporate culture and to embed the reformed culture firmly.

Our Stance on Wages

Zeon Corporation and the Zeon Corporation Labor Union engage in ongoing discussions and consultations to support the sound development of the business and to maintain and improve employees’ working conditions. Regarding wages, an important element of working conditions, we not only pay at or above the legally mandated minimum wage but also secure the level necessary for employees and their families to maintain a certain standard of living, while aiming to provide compensation that exceeds a living wage and is competitive compared with regional and industry labor markets. We also link individual growth to the Company’s growth and reflect the results in wages as appropriate. Furthermore, based on the principle of equal pay for equal work, we are eliminating unreasonable disparities in treatment arising from differences in employment status and creating an environment in which diverse work styles can be freely chosen.

Basic Policy on Corporate Governance (Established November 25, 2015, revised July 1, 2023) (Japanese version only)

Chapter 1: Basic Approach to Corporate Governance

The Company respects the interests of shareholders and other stakeholders, seeks to generate profits while balancing their interests, and aims to continuously enhance corporate value. To achieve this goal, the Company will continue its efforts to develop systems that enable efficient and sound corporate management through effective corporate governance. By establishing an internal control system, the Company will clarify the functions and division of responsibilities among its governing bodies and internal organizations, enabling swift and decisive decision-making and execution. The Company will appropriately oversee and disclose the progress and outcomes of these efforts and will strive to enhance management transparency.

Zeon Group’s Policy on Prevention of Bribery

1. Prohibition of bribery: Officers and employees of Zeon Group shall comply with laws and regulations concerning the prevention of bribery of public officials and shall not give, offer, or promise any gift, entertainment, advantage, or other economic benefit to a public official with corrupt intent. In addition, they shall not seek business advantages through such improper means.

Cybersecurity Policy

We recognize that cyber-related incidents constitute one of the risks that may impede business operations. To ensure business continuity and growth and to maintain social trust, we are committed to securing the digital environment, including information systems and industrial control systems.
Under the leadership of senior management, all directors, officers, and employees, together with our business partners, will address the expectations of diverse stakeholders and promote initiatives based on the following policy in order to establish and maintain a resilient cybersecurity framework.

  1. 1Management Responsibility and Governance Structure
    We position cybersecurity as a key management priority. Senior management will take the lead in implementing risk-based measures. We will establish a company-wide framework and promote coordinated efforts across relevant departments.
  2. 2Securing Resources and Human Resource Development
    We will secure the necessary personnel, technologies, and budget, and work to continuously strengthen our cybersecurity measures. Through education and awareness-raising for employees and relevant parties, we will promote improvements in awareness and capabilities.
  3. 3Risk Management and Incident Response
    We will conduct periodic risk assessments and implement measures according to the level of risk. In the event of an incident, we will respond promptly and strive to minimize damage, achieve early recovery, and prevent recurrence.
  4. 4Supply Chain and External Collaboration
    We will collaborate with Group companies and business partners to ensure security throughout the supply chain. We will also strengthen our measures by leveraging the latest information through cooperation with specialized institutions and industry associations.
  5. 5Factory Cybersecurity
    At manufacturing sites in particular, we will implement cybersecurity measures with a strong emphasis on preventing disasters, including explosions and fires caused by high-pressure gases and large-scale leaks of toxic gases.
  6. 6Continuous Improvement
    Through monitoring and internal audits, we will periodically evaluate the status of our initiatives and pursue continuous improvement in cybersecurity.

Our Stance on Animal Experiments

When developing new products, primarily for medical applications, we make every effort to evaluate them without using animals. However, animal testing may sometimes be unavoidable before human clinical evaluation to ensure efficacy, safety, compliance, and other requirements. Our internal rules for animal testing comply with the Act on Welfare and Management of Animals (Act No. 105 of 1973) and the Act to Partially Amend the Act on Welfare and Management of Animals (Act No. 68 of 2005) (hereinafter, the Animal Welfare Act). Our approach to animal experiments recognizes that animals are living beings and that care must be taken not to kill, injure, or cause them unnecessary suffering. As a general rule we conduct such experiments in accordance with an experimental plan compliant with the Animal Welfare Act. Under this approach, we also make active use of external organizations holding third-party certification, such as the Experimental Animal Breeding Facility Welfare Certification. We are a supporting member of the Japanese Society for Alternatives to Animal Experiments, and we apply the 3Rs (Replacement, Reduction, and Refinement) recommended by the Society.

• Replacement
Replace test methods that use animals with methods that do not use animals or that use animals of a lower phylogenetic order.

• Reduction
Reduce the number of laboratory animals through the modification or review of test methods, without compromising the accuracy of the information required for evaluation.

• Refinement
Modify test methods to alleviate or eliminate pain and distress in animals and to improve animal welfare.