Ensuring the Safety of Chemical Substances

Goals and Achievements of Major Initiatives

  • Enhance functions of the comprehensive system for managing information on chemical substances.
  • Continue to expand deployment of the Wercs at DIC Group companies overseas.

Goals for fiscal year 2019
  • Start creating a new global system that integrates the functions of the comprehensive system for managing information on chemical substances for domestic products and the SDS and label creation systems for export products.
  • Deploy the Wercs at DIC Group companies in Greater China.
Achievements in fiscal year 2019
  • A project was inaugurated and efforts to start creating a new global system began.
  • Deployment of the Wercs at Group companies in Greater China was completed as planned.
Evaluation ★★★
★★
Goals for fiscal year 2020
  • Continue working to create a new comprehensive global system for managing information on chemical substances.
  • Deploy the Wercs at DIC Group companies in the Philippines.

  • Review efforts to comply with regulations in Japan.
  • Comply with regulations overseas

Goals for fiscal year 2019
  • Promote compliance with the revision of chemical substance volume reporting requirements in Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc.
  • Complete advance registration of chemical substances to which K-REACH applies.
  • Promote compliance with Taiwan’s TCSCCA.
Achievements in fiscal year 2019
  • Thanks to efforts to revise the process for gathering information and modify the system for aggregating data, compliance was achieved by the deadline.
  • Advance registration of required chemical substances was completed.
  • Steps were taken to appropriately confirm developments such as the issue of guidance by local authorities.
Evaluation ★★★
★★★
★★
Goals for fiscal year 2020
  • Commence review of business flows between sites.
  • Maintain status of chemical substances for which advance K-REACH registration was completed and prepare to reregister existing chemical substances.
  • Promote compliance with Taiwan’s TCSCCA.
  • Evaluations are based on self-evaluations of current progress.
    Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work

Policies and Organization

Basic Approach

The DIC Group continues working to provide appropriate information to stakeholders to ensure the appropriate handling of its products over the entire life cycles.

In 2002, countries and territories participating in the World Summit on Sustainable Development (WSSD) in Johannesburg, South Africa, including the United States, European Union member states and Japan, agreed on a goal for the management of chemical substances to minimize the impact thereof on human health and the environment by 2020. In 2015, the UN General Assembly set the SDGs, a collection of common goals designed as a blueprint for global society.
As a comprehensive chemicals manufacturer with operations around the world, the DIC Group created uniform standards for managing chemical substances that exceed legal and regulatory standards well before the WSSD. In line with its Environment, Safety and Health Policy (established in 1992), the Group views product stewardship* as the foundation of Responsible Care and works to provide stakeholders with information on the appropriate handling of its products over their entire life cycle. The Group has also promoted efforts to eliminate substances of high concern specified in the Montreal Protocol on Substances that Deplete the Ozone Layer, the Stockholm Convention on Persistent Organic Pollutants and the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade, as well as to develop alternatives that exert less of an impact on the environment. To this end, the DIC Group has established bases in Greater China and the Asia–Pacific region, better positioning it to disseminate information to Group companies around the world.

  • Product stewardship is a philosophy that emphasizes assessing product-specific risks and sharing findings and information on appropriate handling with stakeholders with the aim of reducing the ESH impact of products over their entire life cycle, i.e., from the development of chemical substances through to procurement, production, transport, sale, use and disposal or recycling.

Managing Chemical Substances

01Changing Trends in Chemical Substance Management

In 2003, the UN Economic Commission for Europe (UNECE) issued the first edition of the GHS*1. Many countries have since introduced the GHS, including Japan, which in 2006 compelled use of the system in the Industrial Safety and Health Act. As part of its efforts to ensure effective product stewardship, the foundation of Responsible Care, and to emphasize the management of chemical substances across its entire supply chain, DIC sought to respond to this development, as well as to provide customers with crucial hazard-related information. Concurrent with the enforcement of the act in 2006, the Company began providing GHS-compliant SDSs*2. In 2009, DIC developed CIRIUS (Chemical Substance Information Comprehensive Management System), a proprietary system that centralizes the management of information on chemical substances in raw materials and products, as well as automatically checks various laws and regulations—including the Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture etc.—thereby facilitating swift responses to customers’ requests for information.
In 2013, DIC began using the Wercs, a global SDS and label creation system that facilitates the translation of data into 46 languages, for products destined for overseas markets. In 2015, the Company also began deploying the Wercs at overseas Group companies. At present, the system is in use at 23 companies in 11 countries and territories. The Sun Chemical Group has used Atrion International Inc.’s chemical substance information management system since 2006, enabling it to provide highly accurate information to its customers worldwide.
Recognizing the importance of specialized expertise in the area of chemical substance management, DIC has trained employees in the manufacture, import and handling of chemical substances in accordance with applicable laws and regulations since 2000. In 2007, the Company introduced a proprietary licensing system designed to maintain and enhance the skills of its in-house chemical substance management experts.

  • The GHS was formally adopted by the UN in 2003 to facilitate the uniform global classification and labeling of hazard information for chemicals.
  • SDSs contain information on the hazards of chemicals to ensure their safe handling.
The DIC Group’s Comprehensive Global Chemical Information Systems

VOICE

We built a research tool that matches product safety data and the latest chemical substance regulatory information.

Product Safety & Regulatory Group, Tokyo Plant Chihiro Ishida

As a working group member, I am involved in efforts to modify the system to facilitate providing customers with swift and accurate information. In fiscal 2018, we built a research tool that instantly matches the product safety data accumulated in CIRIUS with the latest chemical substance regulatory information, making it possible to provide prompt information that meets customer needs. At the same time, this has helped improve the efficiency of product development and chemical substance surveys that comply with chemical substance regulations. Since DIC’s product portfolio is diverse, there are various requests for system modifications from members of different working groups. Although it is difficult to devise specifications that ensure both convenience and compliance and provide versatility while at the same meeting special requirements, I am thrilled that the work I do is of use to many people. Going forward, we will leverage the know-how gained we have accumulated through this effort to build a new system that is appropriately reflects our status as a leading global manufacturer of fine chemicals.

Product Safety & Regulatory Group, Tokyo Plant Chihiro Ishida

02Principal Initiatives in Fiscal Year 2019

Laws and regulations governing chemical substances are updated every year. In fiscal year 2019, the DIC Group took steps to address revisions to, among others, Japan’s Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc., and the ROK’s Act on the Registration and Evaluation of Chemicals (K-REACH). At the same time, the Group collaborated with related departments in Japan and overseas to gather information and formulate countermeasures in a timely manner in response to developments surrounding the United Kingdom’s withdrawal from the European Union, Taiwan’s Toxic and Chemical Substances of Concern Control Act (TCSCCA) and the PRC’s Measures for Environmental Administration of New Chemical Substances (China REACH).
In the area of systems for managing information on chemical substances, the Group kicked off the Global Chemical Information Project (GCIP) to oversee efforts to create a new global system, thereby positioning it better to respond effectively to legal and regulatory changes. The new system will integrate CIRIUS and the Wercs, facilitating the swift provision of consistent, accurate information to customers across the DIC Group and improving the ability of Group companies in the PRC and the Asia–Pacific region to ensure legal and regulatory compliance. The Group’s goal is to begin deploying this system globally in fiscal year 2024.

VOICE

We participate in industry association activities and were involved in the revision of Japan’s chemical substance law.

Group Manager, Chemical Management Group, Responsible Care Department Shinobu Yamaguchi

当The Responsible Care Department plays an active role in the JCIA and on behalf of DIC, a core member, we were involved in the revision of the Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc. Throughout this process, we struggled to cope with differences of opinion arising from the diverse perspectives of pertinent ministries, including the Ministry of Economy, Trade and Industry (METI). The situation was similar within the JCIA, with the views of individuals diverging depending on the company they represent, so it took a lot of time and effort to get everyone on the same page regarding revisions.
Efforts to meet the WSSD goal for chemical substance management will conclude in 2020. Nonetheless, initiatives aimed achieving the SDGs will continue until 2030 and discussions have already begun with the aim of developing a vision for as far in the future as 2050. As a company that handles chemical substances, we pledge to never lose sight of the need to act in a responsible manner to ensure that DIC Group can continue to play a central role in the JCIA in the years ahead.

Group Manager, Chemical Management Group, Responsible Care Department Shinobu Yamaguchi

03Efforts Going Forward

Promoting the Creation of a New Comprehensive Global System for Managing Chemical Substance Information

Guided by its DIC111 medium-term management plan, one theme of which is to reengineer business processes, DIC will continue to advance the creation of a new global chemical substance information management system that integrates CIRIUS and the Wercs with the goal of beginning to use the new system in fiscal year 2024. The Company is also pushing ahead with the creation of an information management framework to ensure the effective management of information using the new system.

Given the recent tightening of regulations governing chemical substances, the scope of related information that must be managed has expanded and the demands on individuals responsible have become significantly greater and more complex. Requests from customers to conduct research on chemical substances are also expanding, underscoring the importance of ensuring an appropriate global response to changing circumstances. Having conducted a preliminary study in recent years, the Responsible Care Department reached the conclusion that the optimal approach was to integrate and strengthen existing systems to create a new global chemical substance information management system and to establish a new information management framework, prompting it to embark on this process. Going forward, the Responsible Care Department will continue working with other departments involved in the management of chemical substances, as well as with overseas DIC Group companies, to realize this new information management system and framework.

VOICE

After the WSSD goal for 2020, our priority will be to address the SDGs and other new goals.

Group Manager, Chemical Management Group, Responsible Care Department, DIC Corporation Akira Matsumoto

Almost 30 years have passed since the adoption of the WSSD’s goal for 2020. To contribute to the achievement of this goal, Japan has implemented a variety of chemical substance management initiatives that reflect the intent of the UN’s Strategic Approach to International Chemicals Management (SAICM). It is expected that the SDGs—as the successor to the goal for 2020—and the first post-SAICM goal for the global chemicals industry will be discussed at the International Conference on Chemicals Management (ICCM), scheduled for October 2020.
T he DIC Group’s ability to maintain its position as a leading global chemicals company will depend on its ability to address these new goals. As a member of the Responsible Care Department’s Chemical Management Group, I look forward to helping the Group take active and earnest steps to contribute to the achievement of these goals.

Group Manager, Chemical Management Group, Responsible Care Department, DIC Corporation Akira Matsumoto

Creating a New Global System for Managing Chemical Information

Starting Up a New Project

In July 2019, DIC inaugurated a project to oversee the creation a new global system for managing chemical substances and established a project team consisting of representatives from departments well-versed in chemical substance management who were invited to play a role in creation of the new system. In addition to system design and development, the project team reviewed and standardized procedures to be used globally for gathering information to ensure smooth operations. From October through December 2019, team members visited 11 overseas Group companies in three countries to learn about their procedures for managing chemical substances, and reflected findings in the items to be considered as part of the project. In addition, these inquiries underscored the team’s understanding that Group companies were also anxious for a chemical substance information management system.
In fiscal year 2020, the team will continue to promote the construction of the new system and aims to visit overseas DIC Group companies it was unable to travel to in fiscal year 2019. The team will also commence full-fledged efforts to build a chemical substance information management system. The team is confident that tying these efforts to systems design and development work will help enhance the new system’s effectiveness.

Designing and Developing a New Global System

DIC is applying capabilities, experience and expertise accumulated in the design, development and operation of CIRIUS and the Wercs to designing and developing its new global system. The Company also recognizes that a unified global system for managing chemical substance information will enhance its operational efficiency and thus create a framework for data integration with its SAP system.
Individual divisions and departments make use of chemical substance information in its particular work. Accordingly, the system will be used not only by experts in the management of chemical substances but also by diverse other employees across the global DIC Group. The Group is thus aware of the importance of designing the interface so that even non-experts can easily extract and use essential information. The new system will store confidential information on, among others, the chemical composition of products and raw materials. For this reason, and because of the wide range of individuals using the system, meticulous attention to security is a key consideration in system design and development.

A Global Information Management Framework

Techniques used to manage chemical substance information vary greatly depending on country/territory and site, as does the quality of management. Given the expected further tightening of laws and regulations governing chemical substances and the increasing number and changing nature of substances used, implementing an organized global approach is essential. One of the ways the DIC Group is addressing this challenge is through the creation of a new global system. The Group recognizes that introducing a new system is only part of the solution, and so it has also commenced efforts to establish a new information management framework to support administration of the new system after creation and deployment. By the time the new system goes into operation, the Group will have implemented the new framework in Greater China and the Asia–Pacific region, as well as in Japan, its principal operating base, leveraging know-how accumulated in Japan to integrate information management, thereby ensuring consistent quality, securing compliance and strengthening governance. To this end, DIC established a chemical substance information management group in fiscal year 2019. In April 2020, the Group also commenced chemical substance information management efforts in Shanghai.

Complying with Laws and Regulations

01Complying with Laws 1 and Regulations in Japan

DIC recognizes legal and regulatory compliance as central to risk management. In Japan, this includes fulfilling without exception obligations related to the reporting of new chemical substances set forth in the Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc., and the Industrial Health and Safety Act, and to the keeping of records on manufacturing, importing and sales laid out in the Poisonous and Deleterious Substances Control Act. To enhance the reliability of its compliance efforts, the Group has implemented diverse measures, from collecting and analyzing information to formulating guidelines, promoting awareness among Group companies and customers and integrating management using CIRIUS.
With the enforcement in fiscal year 2019 of the revised Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc., the focus of regulations on production volume shifted from assessed hazards (hazard assessment) toward risk when released into the environment (risk assessment). DIC responded promptly to the revised Act’s more complex manufacturing and import volume notification requirements. There were no violations of domestic laws requiring the registration or reporting of chemical substances by the Group in Japan in fiscal year 2019.

Outlook for Principal Initiatives for Fiscal Year 2020

The PRTR is scheduled to be revised in fiscal year 2020. This is expected to result in emphasis being placed on efforts to minimize risks associated with the handling of chemical substances over the entire life cycle of products, with standards for assessing the amount of substances present in the environment shifting from manufacturing and import volume to release amount. Substances included in the register are also expected to be revised. DIC will take active steps to comply with the revised PRTR, as well as to provide basic PRTR information to customers. The Company will also promote the creation of SDSs that comply with JIS Z 7253, the Japanese Industrial Standards (JIS) standard for hazard communication for GHS-compliant labeling and SDSs. DIC will also take decisive steps to address the WSSD goal that supersedes the goal for 2020, which is expected to be discussed at the ICCM, paying close attention to how the new goal is reflected in policies, laws and regulations.

VOICE

DIC and Sun Chemical are collaborating to promote a chemical substance management project.

Director Global Regulatory, Sun Chemical Corporation Robert Kendrick

DIC and Sun Chemical are engaged in a project to identify the criteria needed, and the framework required, for an undertaking to support a global chemical communication management system. This project seeks to define specific chemical criteria that must be utilized to assure compliance with regulations anywhere in the world. The project will involve developing an SAP integration IT platform that is seamlessly accessible by global beneficiaries. This will require an IT investment platform designed to uniformly characterize the chemical composition and safety risk of purchased materials and manufactured commercial products; a system, process, tools and discipline to continuously identify and maintain material characteristic consistencies with both chemical data and system deliverables, such as SDSs and labels; and robust support for new and onerous chemical control regulations (i.e., the U.S. EPA TSCA reset, K-REACH and Global GHS) and to accommodate international language requirements. Our objective is to provide leverage to help establish material fitness guidance with global customers and brand owners and, ultimately, to create a platform to support technological innovation and assist in the coordination of global procurement activities.

Director Global Regulatory, Sun Chemical Corporation Robert Kendrick

02Complying with Global Laws and Regulations

Recent years have brought the establishment and amendment of major laws and regulations governing chemical substances across East Asia. Key examples in fiscal year 2019 included revisions to the ROK’s K-REACH, as well as developments surrounding the PRC’s China REACH and changes to Taiwan’s TCSCCA.
In North America and Europe, as of 2018 the DIC Group had completed registration of existing chemical substances required by substantial revisions to the U.S. Toxic Substances Control Act (TSCA) in 2016 requiring a comprehensive inventory reset (review of existing chemical substances on the TSCA list) and by the enactment of the European Union Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) legislation. The Group is also capitalizing on its global network to respond swiftly to changes in Southeast Asia, including the mandatory deployment of the GHS and the introduction of new systems for registering chemical substances in Thailand and Vietnam.
DIC gathers the latest information on chemical substances in overseas markets through local consultants, as well as through its global network, including experts within Sun Chemical and other Group companies, ensuring its ability to respond effectively to revisions to laws and regulations and to provide information to Group companies and customers. As a leading member of the JCIA’s working group charged with collecting Japanese companies’ opinions and proposals regarding the enactment and revision of laws and regulations, DIC conducts dialogue with government authorities, playing a leading role in ensuring the legal and regulatory compliance of JCIA member companies. There were no violations of laws regarding the registration or reporting of chemical substances by the Group overseas in fiscal year 2019.

Outlook for Principal Initiatives for Fiscal Year 2020

The expected enforcement of China REACH in the PRC may require a major overhaul of the DIC Group’s system for managing chemical substances. Accordingly, the DIC Group will continue to closely monitor developments surrounding this legislation and will respond swiftly as necessary. The Group will also press ahead without delay to complete the registration of existing chemical substances required by the ROK’s K-REACH and Taiwan’s TCSCCA legislation by the respective registration deadlines.
The DIC Group also aims to complete preregistration of chemical substances required under Turkey’s new KKDIK regulation (an acronym consisting of the first letters of each word in “registration, evaluation, authorization and restriction of chemicals” in Turkish), also known as Turkish REACH, by the end of 2020. The Group will also continue to keep abreast of ongoing preparations for the enactment of legislation obliging GHS compliance in India and will submit opinions and proposals through relevant industry associations and take necessary steps.

VOICE

We are working to properly understand and comply with diverse laws and regulations.

Import Control Team, DIC Korea Corp. Gu Gyo-ok

DIC Korea sells products imported from other DIC Group companies. Given the increasingly diverse and specialized chemical substance laws and regulations that importers in the ROK must comply with, including K-REACH, in fiscal year 2019 we established the Import Control Team to oversee related efforts. As a part of this team, I am responsible for making certain that the chemicals we import comply with applicable laws and regulations, as well as for assisting customers in this market to do the same. Correctly understanding and implementing a wide range of laws and regulations is the team’s fundamental and most important job, and our ability to work closely with related parties to respond in a timely manner is directly linked to the Group’s profitability. We also believe it is important to inform local customers about DIC’s policy regarding managing the safety of chemicals so that they can feel secure purchasing DIC Group products. Going forward, we will continue to hone our ability to ensure legal and regulatory compliance.

Import Control Team, DIC Korea Corp. Gu Gyo-ok

The 2018 Chemical Regulatory Compliance Meeting and related training were held in November 2018.

Regional Technical Manager, DIC Asia Pacific Pte Ltd Seah Thiam Leng

Participants in the fiscal year 2018 Chemical Regulatory Compliance Meeting, which was held in Japan, from the Asia–Pacific region and Greater China gathered to discuss the process for implementation of the Wercs, as well as GHS-, SDS- and label-related issues faced by local companies. Up-to-date information on chemical substance information management and export product management at Group companies in Taiwan, the ROK, Vietnam and the United States and at DIC in Japan was also presented and discussed during the meeting.
We also learned about how to access toxicity data, GHS classification and inventory status using the LOLI database, a search tool for information contained in the Wercs. This will help us to better explain SDS hazard pictograms and other information issued by the Wercs in response to requests from customers or ESH inspectors. In addition, the meeting introduced the Global Chemical Information Management Innovation Project, the objective of which is to harmonize raw materials information.

Regional Technical Manager, DIC Asia Pacific Pte Ltd Seah Thiam Leng

Training and Systems

In line with the principles of product stewardship, DIC recognizes the importance of greater employee awareness and knowledge to ongoing efforts to improve the safety of chemicals and manufactured products. The Company places considerable importance on training for individuals involved in the manufacture, import and handling of chemical substances in accordance with applicable laws and regulations and endeavors to improve employees’ awareness and knowledge of applicable laws and regulations in Japan and overseas, which it provides through its program to foster experts and its proprietary licensing system.

Fostering Experts

As a comprehensive global chemicals manufacturer, DIC recognizes legal and regulatory compliance as central to risk management and promotes training designed to foster experts in this area. The Company began offering an entry-level course on laws and regulations governing chemical substances in fiscal year 2014. By providing in-depth training annually to a limited number of individuals, DIC has succeeded in raising awareness of compliance across its entire labor force. A cumulative total of 204 individuals have taken part in this training to date.
Beginning in fiscal year 2020, DIC has expanded the scope of this training to focus particularly on sites with technical departments. The Company is also currently working to design a course and preparing study materials to facilitate the creation of a high-level course designed to impart advanced knowledge about key laws and regulations such as the Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc., and the Poisonous and Deleterious Substances Control Act in Japan.

Licensing System in Japan

Under its proprietary licensing system, DIC provides mandatory specialized training for individuals in Japan engaged in the export and import of chemical substances and issues licenses to employees who have completed training and passed in-house examinations. Licenses are valid for two or three years, depending on the particular business. Training for individuals involved in exporting and importing chemical substances focuses on the Foreign Exchange and Foreign Trade Act, while that for individuals involved exclusively in importing centers on the Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc., the Industrial Health and Safety Act and the Poisonous and Deleterious Substances Control Act. To renew a license, an employee must once again go through training and pass the in-house examination.

As of fiscal year 2019, 1,527 employees held a Class A export license, which requires high–level specialized knowledge, and 183 held a Class B export license, which pertains to ancillary operations, while a further 84 had completed an advanced license course, which demands superior capabilities that was introduced in fiscal year 2015. In addition, 318 individuals held import licenses.
Looking ahead, DIC will continue to deepen the hierarchy of export licenses, and review the content of training its actual operations. The Company is also considering the establishment of a licensing system for employees involved in the preparation of certificates of origin, which have come to play a more important role in recent international FTAs in recent years.

Training at Overseas Group Companies

With the full-fledged deployment of the Wercs, since fiscal year 2017 legal and regulatory officers in Greater China and the Asia–Pacific region have provided training in the use of the system tailored to local laws and regulations. Through such efforts, the DIC Group seeks not only to enhance employees’ understanding of the system’s advantages and operating procedures but also to reinforce their awareness of the importance of legal and regulatory compliance.
In light of the increasingly complex and sophisticated nature of requirements in these regions, a result of the tightening of laws and regulations in pertinent countries, territories and regions, legal and regulatory personnel from Japan, as well as local experts, are invited to conduct training sessions. In the PRC, in particular, laws and regulations are applied at each stage of a product’s life cycle, from the procurement of raw materials and research through manufacturing, sale and disposal. These laws and regulations are frequently enacted and amended, making them difficult to interpret.
In advance of expected substantial revisions to China REACH in fiscal year 2020, local external experts were invited to conduct seminars at Group companies in the PRC on the current status of chemical substance management and precautions for companies, including requesting administrative permits for hazardous chemicals, the essence of laws and regulations pertaining to implementation of the GHS, an overview of procedures for declaring new chemical substances, laws and regulations pertaining to the transport of hazardous goods, and supervision of the import and export of dangerous goods. Suppliers were also invited to participate in this seminar as part of an effort to improve the management of chemical substances by sharing legal and regulatory information. The DIC Group will continue to promote cooperation among legal and regulatory officers from corporate headquarters and regional and overseas Group companies with the aim of further enhancing compliance.

Seminar on the management of chemical substances conducted by an external expert (Changzhou Huari New Material)

Seminar on the management of chemical substances conducted by an external expert (Changzhou Huari New Material)

VOICE

We are working to expand legal compliance training.

Manager, Chemical Management Group, Responsible Care Department, DIC Corporation Hirofumi Higashino

In the modern world, legal and regulatory compliance is required across the board, from the manufacture and import of products through to sales, handling and export. A company that is unable to respond effectively cannot remain a going concern. Frameworks and systems designed to ensure compliance are important, but compliance cannot be achieved without the understanding of each and every employee of the DIC Group.
The Group’s product portfolio is extensive, so the number of laws and regulations with which we must comply is considerable. We currently provide wide-ranging training regarding laws and regulations governing chemical substances. As one of the people in charge of this training, I will work to step up training to better respond to needs pertaining to employees and products to contribute to increasingly effective compliance.

Manager, Chemical Management Group, Responsible Care Department, DIC Corporation Hirofumi Higashino

I will continue working to enhance knowledge and understanding by providing ongoing training.

Regulation Control, Siam Chemical Industry Co.,Ltd. (SCI,Thailand) Monticha-Sudjai

As a legal and regulatory officer at Siam Chemical Industry in Thailand, I provide customer support and deal with government information requirements. Legal and regulatory officers are responsible for disseminating chemical substance information across the supply chain, which we do by making effective use of our hazardous substances management system. To this end, we have established a regulatory committee that meets monthly to deliberate legal and regulatory issues and provides SDSs that comply with the laws of different countries and territories. To improve the efficiency of this process, in 2014 Siam Chemical Industry introduced the Wercs.
With the aim of maximizing the capabilities of the Wercs, in 2018 I was dispatched to Japan for advanced training in the use of the system, as well as in the use of an export management system that complies with Thailand’s new Trade Control on Weapons of Mass Destruction (TCWMD) Act, which will enter into force in 2020. I will capitalize on my newly acquired expertise to provide training for my colleagues at Siam Chemical Industry with the aim of enhancing knowledge and understanding.

Regulation Control, Siam Chemical Industry Co.,Ltd. (SCI,Thailand) Monticha-Sudjai

We are working to improve responsiveness to laws and regulations governing chemical substances.

Corporate ESH Specialist, DIC (China) Co., Ltd. Wenjing Zhang

I am in charge of responses to chemicals-related laws and regulations in the PRC. Operating in an increasingly harsh environment, we work continuously to improve compliance across all chemicals-related operations by promoting efforts aimed at reinforcing the chemical substance management capabilities of individual Group companies. We have also added content related to the management of hazardous chemicals to ESH audits to assess the chemical substance management capabilities of individual production facilities. I oversee training in the use of the Wercs and the BarTender labeling software, which we are using to ensure compliance in the area of materials safety data sheets (MSDS) and label production.
By auditing the efforts of trading companies in the PRC to handle hazardous chemicals, and by providing training on laws pertinent to chemical substances, we will continue working to raise employees’ awareness of laws and regulations governing chemical substances.

Corporate ESH Specialist, DIC (China) Co., Ltd. Wenjing Zhang

The introduction of the Wercs has contributed to cost reductions.

PT. Pardic Jaya Chemicals (Indonesia) Supply Chain Division PPIC Department Manager SRI YUNIATI

We have always used spray marking to put product names on packaging, but the government’s ESH management system led us to realize that spray marking contaminates the atmosphere and is harmful to workers’ health. We also used to subcontract the printing of labels containing information on toxicity, handling instructions and cautions. With the introduction of a label printing system linked with the Wercs, we are now able to print labels with product names and labels containing toxicity and other information. This has greatly increased flexibility and eliminated the need to order printed labels in bulk, resulting in excess inventories. The new system enables us to print only the number of labels we need, which has contributed to cost reductions.

PT. Pardic Jaya Chemicals (Indonesia) Supply Chain Division PPIC Department Manager SRI YUNIATI

The Wercs has automated and enhanced the fexibility of procedures used in the creation of SDSs.

Assistant Manager, Technical Administration R&D Center, DIC (Malaysia) Sdn. Bhd. Chuah Joo Beng

In light of heightened global awareness of safety and the need to comply with pertinent laws and regulations, the Wercs, a comprehensive software, provides a simple, convenient way to create SDSs and issue GHS labels. DIC (Malaysia) currently exports a significant volume of its products. The introduction of the Wercs has made it possible for us to create SDSs and issue GHS labels in multiple different languages. The Wercs has automated and enhanced the fexibility of procedures used in the creation of SDSs. It has also provided us with an effective way to manage global compliance over the long term.

Assistant Manager, Technical Administration R&D Center, DIC (Malaysia) Sdn. Bhd. Chuah Joo Beng

Assessing and Managing Risks

The DIC Group promotes efforts to manage product-specific ESH risks and share related information with stakeholders with the aim of reducing the ESH impact of products over their entire life cycle—i.e., from the development of chemical substances through to procurement, production, transport, sales, use and disposal or recycling.
The most important challenge in risk management is to assess risks in a manner that provides insight into trends related to, among others, the evolution of laws and regulations governing chemical substances and changing product life cycles. To accurately assess the risks associated with a product, it is crucial to secure information on the degree of exposure for people and the environment when the product is used, as well as to examine SDS and chemSHERPA hazard and toxicity information. To facilitate the more efficient gathering and dissemination of information necessary for the assessment of risks, the Group is currently creating a new chemical substance information management system and has formulated the DIC Sustainability Index and is working with technology, production and sales departments to enhance the accuracy of assessments. By thus ensuring the appropriate disclosure of information necessary to assess risks, the Group is confident that it will be able to provide a safer environment for the stakeholders using these products.
In developing new products, the DIC Group also promotes effective management by making use of the aforementioned two platforms, as well as evaluation sheets for environment-friendly products , to assess hazard and toxicity risks, with the objective of providing ever-safer new products.

Socially Responsible Procurement

In line with the DIC Group Universal Purchasing Policy, DIC formulated the DIC Group Green Procurement Guidelines, which prohibit the procurement of materials containing hazardous substances in the seven categories below. The guidelines mandate the submission of a DIC Raw Materials Survey, an SDS and a chemSHERPA*, as well as a DIC Group Green Procurement Guidelines Survey, when purchasing raw materials, thereby creating a system for eliminating substances of concern. Submission of a Conflict Minerals Survey is also required.

  • Substances the production of which is prohibited, as outlined in Article 55 of Japan’s Industrial Health and Safety Act;
  • Substances designated as class 1 specified chemical substances in Japan’s Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc.;
  • Substances designated for monitoring under Japan’s Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc.;
  • Chemical substances the production of which is already prohibited, as detailed in Japan’s Act on the Protection of the Ozone Layer Through the Control of Specified Substances and Other Measures (ozone-depleting substances listed in the Montreal Protocol);
  • Specified particulates denoted in Japan’s Air Pollution Control Act;
  • Specified poisonous substances indicated in Japan’s Poisonous and Deleterious Substances Control Act; and
  • Specified substances detailed in the Stockholm Convention on Persistent Organic Pollutants.
  • chemSHERPA is a scheme designed to facilitate the accurate and efficient sharing of information on chemical substances in products across the entire supply chain. DIC began using chemSHERPA in late fiscal year 2017.

Position on the Use of Animals in Testing

In line with the “3Rs” of animal use in research (“Replacement, Reduction, Refinement”), which are guidelines designed to ensure the more ethical use of animals in testing, the DIC Group actively promotes safe evaluation using quantitative structure–activity relationship (QSAR) models, which do not employ animals, and alternatives to animal testing.

Safe Product Transport

The DIC Group has created Yellow Cards containing simplified SDSs. This provides critical information to transport personnel, facilitating appropriate responses in the unlikely event of an accident to protect the environment and ensure safety.