Compliance Status Regarding Worldwide Chemical Substance Regulations

All business divisions of Toray Industries Inc., as well as its group companies in and outside Japan, have chemical substance management systems in place for securing compliance with relevant regulations worldwide. The Company does this by registering relevant chemical substances while managing and reporting on the quantities it produces and imports, and by confirming that no prohibited or restricted substances are used. Toray is also working to substitute safer product substances for those of which the concern for negative impact on humans and the environment is very high (such as SVHC, substances of very high concern, under REACH).

In fiscal 2023, the following key activities were conducted:

• Registration and notification of chemical substances in compliance with country-specific regulations
• Revision of its Safety Data Sheets (SDS) in response to Japan’s revised Industrial Safety and Health Act
• Substitution of polyamide 12 fine particles, which are banned under the EU’s restriction of intentionally added microplastics, with polyamide 4 fine particles that are marine-biodegradable
• Development of PFAS-free materials, including water-repellent textiles, polyimide materials, and electrolyte membranes
• Development of new wavelength conversion sheets using cadmium-free materials

Management of Chemicals in Products (CiP)

Toray Industries has established the Toray Green Procurement Guidelines (established June 2004, latest revision June 2022) with the aim of reducing the impact on the global environment of the entire cycle from product development, manufacturing, distribution, use, to disposal. The guidelines address the following legally regulated substances by identifying them as either banned or controlled substances. In addition, the company identifies and manages controlled substances according to the relevant laws and regulations for each business.

Banned Substances

• Class I specified chemical substances regulated under the Japanese Act on the Regulation of Manufacture and Evaluation of Chemical Substances
• Substances banned under the Japanese Industrial Safety and Health Act

Controlled Substances

• 10 restricted substances under the EU RoHS Directive
• Azo compounds that form specified amines under the Japanese Act on Control of Household Products Containing Harmful Substances
• Ozone depleting substances under the Japanese Act on the Protection of the Ozone Layer
• Radioactive substances

Controlled substances other than those listed above are designated primarily in accordance with the laws and regulations pertaining to chemSHERPA¹.

• 1 chemSHERPA: Information-sharing scheme for chemical substances, managed by the Joint Article Management Promotion-consortium (JAMP) (https://chemsherpa.net/english)

The Group provides information on the chemical components in all chemical products using Safety Data Sheets (SDS), regardless of whether they are classified as hazardous under the Globally Harmonized System (GHS) of Classification and Labelling of Chemicals. Additionally, for materials such as yarn and film, the Group also provides customers with information on the chemical substances they contain in a format similar to the SDS.

Further Improving Chemical Management in Toray Group

To better respond to increasingly stricter regulations worldwide, Toray Group is working to enhance its chemical management by utilizing IT systems and improving in-house training. The Toray Chemicals Management System (TCMS), which began operating in fiscal 2019, is used to reliably and promptly confirm the registration status of chemical substances and regulations in destination countries, as well as to issue SDS compliance with specific countries’ laws and regulations.
In addition, the Group also established a new in-house education system to raise awareness and increase the knowledge levels of employees in charge of chemical management. In fiscal 2023, Toray Industries conducted training for Group employees who wished to participate on six topics, including chemical management systems in China and the EU's proposed PFAS restrictions. A total of 1,462 employees took part in the training sessions.