Reports by Stakeholder Category

The ADEKA Group, which uses chemical substances and palm oil as raw materials, cares about the environment throughout the process of procurement and from production to disposal. Toward realizing a sustainable society, we are developing products with less environmental impact and engaging in energy-saving initiatives.

Under the annual policy determined by the Environmental and Safety Division, each office of the ADEKA Group formulates an execution plan and conducts environmental management activities that meet local needs. The Environmental and Safety Division conducts an annual audit of the Group companies which have offices and plants inside Japan.

Environmental Initiatives System

Initiatives for Reducing CO₂ Emissions

The ADEKA Group seeks to reduce its emissions of CO₂, a greenhouse gas that wreaks havoc on a global scale. Each of the Group operation sites has its own annual reduction target and is engaged in raising production efficiency or other improvement activities. The progress of those activities is checked through plant audits conducted by the president and the Environmental and Safety Division.

Preventing Water Pollution

The ADEKA Group seeks to preserve water resources that are essential for creating a recycling-oriented society. It prevents water pollution by collecting and recycling wastewater from its manufacturing processes and by complying with relevant laws and regulations to reduce the environmental impact.

Preventing Air Pollution

The ADEKA Group's production and R&D divisions have strived to protect the environment by consistently working to prevent air pollution by reducing their emissions of SOx, NOx, dust and soot.

Properly Managing the Disposal of Industrial Waste

ADEKA and its Group companies in Japan conduct regular inspections of industrial waste disposal contractors to verify that contractors are properly disposing of industrial waste. Furthermore, checks are conducted to verify that waste is being properly managed at business sites.

Promoting Biodiversity

In accordance with the ADEKA Group Biodiversity Policy, the Group conducts initiatives to promote the preservation of biodiversity and its sustainable use.

As a materials manufacturer for chemical and food products, the ADEKA Group provides safe, highquality products that live up to customer expectations. We strive to develop systems and products as we work together with customers to identify and tackle the issues they face.

Quality Management System

ADEKA's Quality and Safety Policy guides its sales, manufacturing, R&D and staff departments in their quality and safety initiatives. The company conducts quality and PL inspections to ensure the effective implementation of initiatives. The results are shared at the Quality Management and Product Liability Council as part of a PDCA cycle.

Overview of Quality Management System

The ADEKA Group pursues coexistence and co-prosperity by building and maintaining just and fair relationships with its partners, recognizing that contributing to affluent lifestyles through products is what customers value and a shared purpose across the entire supply chain, including business partners.

Socially Responsible Procurement

Under its Procurement Management Standards, ADEKA conducts procurement activities based on trust and cooperation with its partners. The Company is working to revise the Procurement Management Standards as well as to formulate and release the Basic Purchasing Policy and Purchasing Guidelines to further stabilize procurement and establish a sustainable supply chain based on CSR.

Our employees are the driving force for advancing the ADEKA Group's business into the global domain. We have a number of initiatives in place to ensure that our employees have a safe and pleasant work environment, where human rights and fair treatment are respected, and which cultivates a vigorous company that values the individuality and intrinsic character of each employee.

The ADEKA Group emphasizes the importance of a work-life balance, which encourages each employee to demonstrate their capabilities fully. Also, it is introducing a system to support flexible and diverse working styles and foster awareness.

Active Roles of Women in the Workplace

ADEKA promotes women in the workplace and has formulated an action plan with the aim of having women occupy at least five percent of management positions by 2021.

Employment of Retirees

ADEKA has a rehiring system of employees up to 65 years of age who wish to continue working after reaching the retirement age (except in special circumstances). The system enables mature employees to continue contributing their accumulated knowledge, skills, and experience.

Employment of Persons with Disabilities

The ADEKA Group continually strives to improve the work environment and expand job categories toward enabling disabled persons to exercise their capabilities and achieve self-realization.

The ADEKA Group recognizes employees as key company resources. We therefore view employees as assets and respect the aspirations of each individual while striving to cultivate human resources that will lead the next generation.

New Personnel System

In April 2019, ADEKA revised its personnel provisions with the aim of fostering a corporate culture that seeks out challenges and preparing an environment that is conducive to value creation and the development of global human resources.

The ADEKA Group considers safety and security to be the most important issues for companies, and as such strives to establish a safe workplace by enhancing the awareness of all employees through the operation of OHSAS 18001, an occupational health and safety management system, the establishment of health and safety committees at every workplace, and the activities of the Zero Accident Committee.

Proper Disclosure of Information

ADEKA strives to disclose accurate corporate information in a fair and timely manner to all stakeholders under its disclosure policy. Moreover, the Group actively discloses important information pertaining to company management, including business plans, to enhance understanding of ADEKA. However, it will disclose information should it determine that the content of its financial results could significantly impact shareholders and investors.

• Disclosure Policy
• IR

The ADEKA Group strives to be a good corporate citizen that respects and understands the culture and customs of the communities it does business in, both in and outside of Japan. The Group continues to engage in active dialogue with communities, seeking to co-prosper and coexist with society.

Basic Stance on Corporate Governance

The ADEKA Group places a top priority on the strengthening of corporate governance in order to realize its mission and management policies as well as achieve sustainable growth and enhance its midto long-term corporate value. Based on the audit and supervisory board system adopted under its management system, the company is strengthening its governance systems through efforts such as the appointment of independent external directors, introduction of the executive officer system and establishment of Management Committee.

• Management Policy/Code of Conduct

Overview of Corporate Governance as of June 30, 2019

Compliance with Corporate Governance Code

The Financial Services Agency and the Tokyo Stock Exchange, Inc. introduced Japan's Corporate Governance Code (CGC), which establishes fundamental principles for effective corporate governance at listed companies. ADEKA operates a CGC Promotion Committee that meets on a quarterly basis to discuss the following matters.

The ADEKA Group intends to create a society that respects the rights and diverse values of all stakeholders involved in our business activities.

Basic Stance on Compliance

The management policies of the ADEKA Group support the effective response to changes in the social and managerial environment. They are intended to realize sound management and harmony with international society by sufficiently protecting stakeholders' interests.

The Group's compliance management is intended to fulfill public expectations and demand through the provision of new value that is useful for addressing social issues by providing high-quality products and services created using ADEKA's unique technologies and through actively communicating with stakeholders as well as engaging in social contribution activities.

System for Promoting Group Compliance

The Compliance Promotion Committee meets quarterly to manage and monitor compliance at ADEKA. A system for instilling the Basic Compliance Policy across the company and swiftly collecting information has been established by appointing Compliance Leaders in each section. In addition, representatives and compliance officers of major Group companies meet twice a year for the Group Compliance Conference. Also, the company conducts a survey on compliance awareness biannually, targeting all executives and employees of major Group companies. Survey results are used to improve activities in a united Group effort to enforce compliance rigorously.

Basic Stance on Risk Management

As business risks increase in the management environment, the ADEKA Group has been seeking prevention of the incidents and minimization of the damage thereof. This has been done by outlining a system for managing risks in the ADEKA Group Risk Management Manual focusing on prevention and countermeasure effort.

Crisis Management

The ADEKA Group Risk Management Manual also sets the framework and workflow for enabling each section and Group company to work in concert for quick and effective emergency response. In addition, ADEKA has published and distributed an Emergency Public Relation Manual with the aim of minimizing the loss of credibility in the event of any scandal, including incidents and accidents within the ADEKA Group.

Overview of Risk Management