Environment

The Group believes that helping mitigate global environmental impacts through the effective use of resources, such as water, energy, and raw materials, and the prevention of environmental pollution are indispensable actions to ensure the sustainability of companies. With this belief, we will advance various initiatives and also build a sustainable business by actively deploying innovative technologies.

Environmental and safety management

Basic approach

We recognize that identifying and managing the impacts chemical substances have on the environment and their safety is an important obligation of a paint manufacturer. Since we declared our commitment to Responsible Care (RC) in 1995, we have been conducting RC activities that apply not only to the environment, but also include areas of occupational safety and health and chemical and product safety, starting in fiscal 2010.
The Group conducts environment and safety management through measures and improvements on safety, environment and health based on its RC activities. We have established the Basic Policy for Responsible Care outlining tasks that must be undertaken by each employee and all organizations across the entire Group as the foundation of our business activities, and we strive to make this policy known throughout the Group.

Basic Policy for Responsible Care

Guided by the Purpose that defines the identity of the Nippon Paint Group, "Enriching our living world through the power of Science + Imagination," all our group employees are working together in the six core categories of responsible care: environmental protection, safety and accident prevention, occupational health and safety, logistics safety, chemicals and product safety, and engagement with society. We will conduct these activities in compliance with laws and regulations and by building trust with our stakeholders with the goal of contributing to the creation of a sustainable society.

* Responsible Care (RC) is a pledge from businesses within the chemical industry to exercise consideration for the environment, safety, and health throughout the processes of chemical product development, manufacturing, distribution, use, final consumption, and disposal. The pledge involves implementing voluntary environmental safety measures and improvements. Responsible Care started in Canada in 1985 and became adopted by chemical industries in other countries around the world. In Japan, the number of member companies has grown with the promotional activities conducted by the Japan Responsible Care Council (JRCC) since its establishment in 1995.

Management structure

Our Group has established the Responsible Care Committee, which reports directly to the President. The committee is involved in setting goals and planning activities, as well as sharing information of each company at domestic Group meetings, including safety and environment meetings as well as product safety meetings, and promoting activities relevant to the environment, health and safety. And the Board of Directors oversees our sustainability activities including Responsible Care activities.

We have also established an environment, safety and health organization in each Group company, including overseas, which enable us to engage in effective and efficient operations through activities built around our primary business activities. The activities follow a PDCA cycle at each company and plant, and are subject to both external review for ISO 14001 and internal RC audits to clearly identify any areas of improvement. We also conduct regular management review to strive for continuous improvement.

Targets and results of Responsible Care

The Group has established the Responsible Care (RC) Activity Policy concerning the basics of RC activities comprising of environmental preservation, occupational safety and health, security and disaster prevention, chemicals and products safety, logistics safety, and dialogue with society (the six pillars), in aiming to standardize RC activities. We have also established the Safety and Environment (RC) Regulations in aiming to improve effectiveness and efficiency when carrying out RC activities.

From 2020 to 2021, we have conducted activities with the following items identified as priority themes.

Targets and results of Responsible Care

Priority themes	Targets for 2021	Results in 2021	Evaluation of 2021^*	Guidelines of 2022 targets
Occupational safety and health Security and disaster prevention Logistics safety	Continuing review of risk assessment to improve comprehensiveness of assessments and implementing thorough risk measures (reduction and acceptance) based on the assessments to prevent disasters and accidents (priority targets: becoming caught or stuck, contact with hazardous materials).	Each PC developed and implemented a remedial action plan based on the results of risk assessment.	＋＋＋	Continuing review of risk assessment to improve comprehensiveness of assessments and implementing thorough risk measures (reduction and acceptance) based on the assessments to prevent disasters and accidents (priority targets: contact with objects of high-temperature/low-temperature, falls).
	Ensuring and strengthening of safety functions (organization, human resources and systems) necessary for safety control.	Strengthened safety function at each PC, such as establishing education systems and providing training to safety personnel based on the safety function development plan of each PC.	＋＋＋	ー
	Enhancing safety management for logistics (contractor management, storage of hazardous substances, material handling and conveyance, transportation, etc.).	There was no serious injury despite the occurrence of an injury involving a logistics vehicle.	＋＋	Enhancing safety management for logistics (contractor management, storage of hazardous substances, material handling and conveyance, transportation, etc.).
	No serious injuries	There were no serious injuries.	＋＋＋	No serious injuries (occupational injury and physical injury)

Priority themes	Targets for 2021	Results in 2021	Evaluation of 2021^*	Guidelines of 2022 targets
Environmental preservation	Initiatives to combat global warming Plan and implement activities to reduce total CO₂ emissions to below the FY2019 level Plan and implement activities to reduce total CO₂ emissions related to cargo transport to below the FY2019 level	Almost all PCs which set total CO₂ emissions reduction targets achieved their targets. However, some PCs which set CO2 emissions intensity reduction targets failed to achieve their targets due to the decrease in output compared to the FY2019 levels. Completed calculation of Scope 3 emissions at our group partner companies in Japan. Each PC set targets for improving logistics efficiency and contributed to reducing CO₂ emissions related to cargo transport by conducting CO₂ emission reduction activities.	＋＋	Initiatives to prevent global warming (purchase of renewable energy/energy conversion/monitoring progress of CO2 emissions reduction) Scope 1: Started considering and implementing energy conversions Scope 2: Started purchasing renewable energy for achieving GHG reduction target (reduction of 6.9% compared with the 2019 level)
	Initiatives on the proper management of waste materials Achieve and maintain reduced industrial waste generation and zero industrial waste sent in landfills. Store PCB waste properly and complete treatment by the deadline.	Achieved the reduction target for industrial waste reduction but waste was transported to a landfill once. Properly managed and stored PCB waste in accordance with laws and regulations.	＋＋	Actions for the proper management of waste Reduced industrial waste generation and achieved and maintained zero industrial waste sent in landfills. Properly stored PCB waste and completed treatment by the deadline.
	Protection of air, water and soil Comply with voluntary management standards (air pollution: SOx, NOx, soot and dust; water pollution: COD, total phosphorus, total nitrogen). Reduce substances subject to the PRTR system (reduce emissions into the atmosphere or hydrosphere) and VOC emissions. Zero incidents of soil and groundwater contamination and leakages of fluorocarbons that deplete ozone.	Continued to comply with voluntary management standards. Achieved reduction target for substances subject to the PRTR system. Achieved zero incidents of soil and groundwater contamination or leakage of fluorocarbons.	＋＋＋	Protection of air, water and soil Comply with voluntary management standards (air pollution: SOx, NOx, soot and dust; water pollution: COD, total phosphorus, total nitrogen). Reduce substances subject to the PRTR system (emission into the atmosphere or hydrosphere) and VOC emissions. Zero incidents of soil and groundwater contamination and leakage of fluorocarbons that depletes ozone.

Priority themes	Targets for 2021	Results in 2021	Evaluation of 2021^*	Guidelines of 2022 targets
Chemicals and environmental safety	ESG/SDGs-driven product launches and marketing initiatives Identifying one or more high priority items, such as reducing environmental impact and addressing social challenges and managing and promoting activities for these items as Responsible Care targets, such as by developing and supplying new products and replacing existing products.	Nippon Paint Marine Coatings Co., Ltd. (NPMC): Conducted marketing activities as planned, such as sales of FASTAR anti-fouling ship bottom paint to customers. Nippon Paint Automotive Coatings Co., Ltd. (NPAC): Following reorganization, included initiatives for carbon neutrality in its strategy and launched a cross-functional project.	＋＋＋	ESG/SDGs (LCA)-driven product launch and marketing initiatives Development and commercialization of sustainable products that benefit society and development of markets for these products Products that have a smaller environmental impact Products with social benefits
Chemicals and environmental safety	ー	ー	ー	Management system for chemical substances To maintain compliance with the Poisonous and Deleterious Substances Control Law, Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc., as well as revisions to overseas laws with deadline for notification, perform internal and external surveys of the current status of compliance based on business requirements as well as regulatory review.

Priority themes	Targets for 2021	Results in 2021	Evaluation of 2021^*	Guidelines of 2022 targets
Strengthening of internal control	Management system for chemical To maintain compliance with the Poisonous and Deleterious Substances Control Law, Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc., as well as revisions to overseas laws with deadline for notification, perform internal and external surveys of the current status of compliance based on business requirements as well as regulatory review.	A violation of the Foreign Exchange and Foreign Trade Act involving an export (an unauthorized export in 2018) was discovered. To prevent a recurrence, the export process flow was improved.	＋＋＋	Moved to targets in the chemicals and environmental safety category.
Strengthening of internal control	Enhancement of safety and environmental activity management structure Reliably acquire global data on safety and the environment and strengthen the structure for improving safety and environmental performance by implementing EHS/CSR systems.	Following the change of the safety and environmental activity management structure, temporarily suspended the introduction of EHS/CSR systems and started considering an alternative system. Collected group-wide safety and environmental data with the cooperation of each PC.	＋＋＋	ー

Priority themes	Targets for 2021	Results in 2021	Evaluation of 2021^*	Guidelines of 2022 targets
Management system	ー	ー	ー	Provided training on various topics involving the RC management system (occupational safety, environment, product safety, etc.).
Management system	ー	ー	ー	Identify emergency situations, implement systematic training, and check the effectiveness of emergency response procedures

※ Assessment standards: Average achievement rate in Japan ＋＋＋：80％ or more; ＋＋：50％ or more; ＋：Less than 50%

Acquisition status of management system certification

The acquisition of environmental management system certification (ISO 14001) is considered a fundamental tenet of environmental preservation in terms of management system. As for occupational safety and health, we are conducting activities based on the occupational health and safety management system (OHSMS).
Nippon Paint Group received ISO 14001 multi-site certification for seven operating companies in Japan and all (100%) of their subsidiaries (in total 62) upon audit by an external certification organization. In addition, we provide active support to our partner companies overseas for their health and safety activities and take actions to deepen communications for sorting out problems. In Asia, we provide support to enable our partner companies to establish improvement activities. In other regions, we conduct activities and provide support for corrective actions on an as-needed basis.

Environmental management system (ISO 14001)
Domestic: 63 bases (100％)
Overseas: 52 companies/bases

*For production bases in Japan, based on interviews as of 2023; for production bases outside Japan, based on interview as of 2020. The reporting boundary excludes affiliated parties, other affiliated companies, non-consolidated subsidiaries, affiliated companies, equity-method affiliates, scheduled closures, etc.

Safety and health management system (ISO 45001 / former OHSAS 18001)
Domestic: We have adopted the occupational health and safety management system (OHSMS) at almost all production bases (under development for a portion of bases) in order to continuously maintain and enhance RC-based occupational safety and health activities.
Overseas: 22 companies/bases

*For production bases outside Japan, based on interviews as of 2020. The reporting boundary excludes affiliated parties, other affiliated companies, non-consolidated subsidiaries, affiliated companies, equity-method affiliates, scheduled closures, etc.

Environment, safety and health education

In addition to legal education and training, the Group conducts basic knowledge and practical environment and occupational safety and health education in order to properly implement RC activities. Training conducted in fiscal 2020 was as follows.

New employee training: 89 participants
Follow-up training for new employees: 78 participants
ISO internal auditor training seminar: 113 participants

Environment

Environmental and safety management

Basic approach

Management structure

Targets and results of Responsible Care

Targets and results of Responsible Care

Acquisition status of management system certification

Environment, safety and health education

Environment - Environmental and safety management initiatives