Unified Management of Safety, Health, Accident Prevention, and Environmental Preservation Issues

2007 Safety, Health, Accident Prevention, and Environment Conference for Japanese Subsidiaries and Affiliates

Toray Group seeks to manage safety, health, accident prevention, and environmental preservation issues in a unified, Group-wide manner that includes Japanese and overseas subsidiaries and affiliates. Each year we identify Safety, Health, Accident Prevention, and Environmental Action Policies and pursue their implementation throughout the Group; in 2006, we addressed the 16 Priority Actions listed in the table to the lower right. The company-wide Safety, Health, and Environment Committee reviews conditions at all Group companies and plants as well as associated performance in these areas to discuss and determine future directions and policies. Issues involving environmentally friendly products, product recycling, and global warming countermeasures are the responsibility of the Global Environment Committee.

Each November we host the Toray Group Safety Meeting in Japan to promote safety awareness. This educational program is typically attended by more than 200 guests including the president and other directors of the Board of Toray and its Japanese subsidiaries and affiliates, as well as plant general managers and other employees.

Safety, Health, Accident Prevention, and Environmental Preservation Promotion System

Toray Group Safety, Health, Accident Prevention, and Environmental Action Policies for 2006
	Policies	Priority Actions
Common	Improve workplace discipline Enhance risk management	Hold meetings before and after work Enhance education and management structures (laws, SOP) Execute Business Continuity Plan (BCP) in the event of a major earthquake Enhance risk management and strengthen response capability
Safety	Follow basic safety rules Eliminate nearaccidents	Strictly follow SOP Enforce use of protective equipment and enhance associated management Develop countermeasures for serious near-accidents and apply horizontally throughout organization (increase safety of rotating parts and moving parts on machinery)
Health	Rigorously manage occupational health	Emphasis on handling and management of chemical substances Promote mental health management Pursue asbestos countermeasures
Accident Prevention	Enhance accident prevention measures	Systematically promote anti-earthquake measures (using both “hardware” and “software”) Review fire prevention equipment and associated management methods Review and improve accident prevention and environmental measures at chemical plants
Environment	Achieve targets established by the Second Three-year Environmental Plan	Achieve targets for reducing environmentally harmful emissions Strive to achieve zero emissions Pursue green procurement and green purchasing

Although chemical substances play an indispensable role in modern society, they can have adverse effects on human health and the natural environment if handled improperly.Responsible Care refers to the responsible and voluntary implementation of appropriate safety, health, and environmental measures when handling chemical substances throughout the product lifecycle, from development and manufacturing to distribution, use, and disposal. Toray has been an active member of the Japan Responsible Care Council (JRCC) since its establishment in 1995. FY 2006 initiatives focused on reviewing and rebuilding a new chemical substance notification system and pursuing GHS*1 compliance.

*1 The Globally Harmonized System of chemical product categories and labeling.

As part of our RC activities, we have been working to acquire certification under the ISO14001 international standards for environmental management. All 12 of Toray's plants have already been certified. During FY 2006, 1 Japanese subsidiary as well as 6 overseas subsidiaries/affiliates and 7 associated plants were certified, bringing the total to 42 subsidiaries/affiliates and 58 plants.

ISO14001 Certification (As of March 31, 2007)

Colored companies and plants gained certification during FY 2006.

A Safety, Health, Accident Prevention, and Environmental Audit in progress

Toray Group conducts annual Safety, Health, Accident Prevention, and Environmental Audits to evaluate and improve conditions and management at all manufacturing companies and plants. Specifically, the audit process encompasses three stages: an internal audit at each plant using a uniform auditing checklist, a preliminary on-site audit or document audit by the auditing staff, and an executive audit by Toray's board of directors and representatives or supervisory company presidents for each region or country.During FY 2006, audits conducted at a total of 13 Toray plants and laboratories, 25 plants at Japanese subsidiaries and affiliates, and 40 plants at overseas subsidiaries and affiliates focused on issues such as the dangers of oxygen deficiency and forklift safety countermeasures.

The European Union's new REACH*2 chemical regulations took effect in December 2006, extending comprehensive controls to existing chemical substances. Toray Group formed a REACH Countermeasure Promotion Department to oversee compliance with the new regime and established structures to pursue compliance at all Toray divisions and departments as well as Japanese and overseas subsidiaries and affiliates. We are currently identifying targeted products in preparation for preliminary registration, which starts in June 2008.

*2 REACH: Registration, Evaluation, Authorization and Restriction of Chemicals

A variety of environmental efficiency indicators have been proposed recently to express the relationship between business activities and their environmental impact. Because no standard approach has yet been determined for calculating an integrated indicator that incorporates various environmental impacts, Toray Group is experimenting with expressing the results of environmental initiatives by calculating separate environmental efficiency indicators for principal environmental evaluation items instead of using an integrated indicator.