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Employees and contractors health and safety

Awareness of Issues

The Group places top priority on safety. At the same time, we have created a work environment in which employees can work comfortably. We recognize that operation in the absence of accidents and disasters protects employees, fulfills our responsibilities as a supplier to customers, and leads to the sustainable development of the company. In recent years, many natural disasters have occurred, and we are addressing these as an important issue.

Major Risks and Opportunities

Risks

・Impact of accidents and environmental problems on local communities and employees.
・Damage to equipment caused by typhoons, earthquakes, or other natural disasters.
・Impact of an infectious disease outbreak on operations.

Opportunities

・Measures to prevent accidents and the development of new processes enable stable production and improved productivity.
・Hiring and retaining excellent human resources.
・Continuing operations, shutting down operations, and resuming operations safely by designing the plant in anticipation of a natural disaster and taking measures against risks.
・Promote employee health and realize a work-life balance. Cultivating a sense of motivation and fulfillment in work.

Shin-Etsu Group approach

■ Policy

The Group will work to create a comfortable and safe workplace whose goals are to achieve "zero serious accident" and "zero lost time accident."

Basic approach

・Safety education for employees through disaster prevention drills and workships
・Environmental Control and Safety Audits
・Improvement of the workplace environment and to promotion of employees health

Activity highlights

1 PDCA cycle
One of the method to smoothly carry out management tasks such as production control and quality control in business activities. To improve business operating continually by repeating the four steps such as Plan (P) → Do (D) → Check (C) → Act (A).
2 MOC
Management of change
3 4M
It is the first letter "M" of four words for man, machines, media and management.
4 5S activities
It is the first letter "S" of five Japanese words for seiri seiton (organize and order things), seiso (cleaning), seiketsu (cleanliness), and shitsuke (bringing-up).
5 Central Labor Accident Prevention Association
A corporation for the purpose of public interest established in 1979 with the approval of the Minister of Labor (currently: Minister of Health, Labor and Welfare) under the Labor Accident Prevention Group Act. It aims to improve safety and health and to eliminate occupational accidents through promotion of voluntary occupational accident prevention activities by business owners.
6 HAZOP
Hazard and Operability Study. Standard process hazard analysis methods in the chemical process industry.

* Evaluation standards
◎: Goal achieved ○: Goal basically achieved △: 50% achieved ×: Far from achieved

Performance and Outcome

Occupational Safety Management

Item	Priority Issues (Target)	Implementation Status for Fiscal 2019	Evaluation	Planned Implementation Items for Fiscal 2020
Management System	1. Continuous improvement and implementation of the health and safety management system	・Communication by the plant manager and division heads of their commitment and active involvement ・Appropriate implementation of the PDCA cycle¹ based on the health and safety management system ・Promotion of effective safety activities through substantial internal audits (audit the effectiveness of PDCA cycle and safety activities)	◎	・Communication by the president, the plant manager and division heads of their commitment and active involvement ・Development of good PDCA cycles for the health and safety management system and promotion of effective activities
	2. Qualitative improvement of environmental safety audits	・Appropriate follow-up on the matters pointed out during environmental safety audits ・Qualitative improvement of environmental safety audits at affiliated companies in the plant area ・Active involvement at overseas manufacturing bases through guidance and auditing	◎	・Qualitative improvement of environmental safety audits at affiliated companies in the plant area (ongoing) ・Active involvement at overseas manufacturing bases as a mother plant through guidance and auditing (ongoing)
	3. Thorough change management	・Confirmation of application of MOC² rules at the plants and thorough compliance with them ・Risk assessment at the time of 4M³ change	◎	・Establishment of regulations and standards for MOC rules ・Confirmation of application of MOC rules at the plants and thorough compliance with them (ongoing)
Process Safety and Prevention Plan	1. Zero serious accident	・Achieved target of zero serious accident	◎	・Zero serious accident
	2. Facility and process safety improvement	・ Implementation of planned process risk assessment ・Safety measures for non-routine work and unsafe operations, as well as continuing to consider accident trouble cases ・Maintenance and utilization of safety basic information ・ Proper operation of alarms and interlocks	〇	・Continue and enhance the process risk assessment (Limited to facilities and chemical plants where accidents due to explosion fires, or chemical reactions are anticipated) ・Safety measures for non-routine work and unsafe operations, as well as continuing to consider accident trouble cases (ongoing) ・Maintenance and utilization of safety basic information(ongoing) ・Proper operation of alarms and interlocks(ongoing)
	3. Improvement of facilities and maintenance management	・Thorough investigation of equipment trouble causes, recurrence prevention and design technology improvement ・Improvement of equipment maintenance (Construction of function maintenance and management method of safety equipment and safety system and planned repair of old pipes and equipment)	〇	・Thorough investigation of equipment trouble causes, recurrence prevention and design technology improvement (ongoing) ・Improvement of equipment maintenance (ongoing)
	4. Predictions and reliable responses to emergencies	・Consider estimating and minimizing damage if the worst situations such as serious accidents and massive earthquakes occur ・Maintenance of emergency-response criteria / manuals ・Review and implement business continuity planning training	〇	・Consider estimating and minimizing damage if the worst situations such as serious accidents and massive earthquakes occur(ongoing) ・Preparation of emergency-response criteria manuals (including troubles, accidents and natural disasters) (ongoing)
	5. Plant security enhancement	・Strengthen prevention measures against external intruders ・Provide visitors to the plants with risk information and inform them of evacuation methods if an accident or disaster occurs	〇	・Strengthen prevention measures against external intruders (ongoing) ・Provide visitors to the plants with risk information and inform them of evacuation methods if an accident or disaster occurs(ongoing)
Occupational Safety	1. Achieve zero labor accidents requiring an absence of a day or more	・The Shin-Etsu Group: 8 people ・Shin-Etsu Chemical: 0 people	△	・Achieve zero labor accidents requiring an absence of a day or more
	2. Rate of labor accidents not accompanied by an of absence a day or more: 0.5 or less	・The Shin-Etsu Group achieved its goal with a rate of 0.77 ・Shin-Etsu Chemical: 0.49	△	・Rate of labor accidents not accompanied by an absence of a day or more: 0.5 or less
	3. Human error reduction	・Prevention of accidents and disasters due to human errors	〇	・Prevention of accidents and disasters due to human errors (ongoing)
	4. Improve work safety	・Promoting “zero accident” activities (practiced Hazard prediction activities, pointing and calling, and 5S4 activities) ・Activation and promotion of close-call incident proposals and improvement proposals (set promotion goals) ・Implemented assured horizontal expansion of accident examples of the Group companies ・Cultivate a safety culture in which rules and manuals are followed	◎	・Promoting of safety activities (practiced Hazard prediction activities, pointing and calling, and 5S activities) (ongoing) ・Active improvement of work methods and work environment (ongoing) ・Implement application of similar process and examination of accident in the Group and other companies (ongoing) ・Preventing Accidents and Disasters among Middle-Aged and Elderly People ・Measures to prevent accidents by contacting dangerous areas, equipment etc. ・Review of factory standards for protective equipment and protective clothing for dangerous or harmful work
	5. Review and reorganize work manuals and ensure strict compliance	・Implement of planned review and content enhancement of work manual maintenance (routine, non-routine, emergency response etc.) ・Confirm the compliance of work manuals	◎	・Implement of planned review and content enhancement of work manual maintenance (ongoing) ・Confirm the compliance of work manuals (ongoing) ・Creation of a safe culture that complies with rules and manuals (ongoing)
	6. Work risk assessment	・Implement work risk assessment based on plans(Central Labor Accident Prevention Association⁵ method or procedure HAZOP⁶ ) Risk assessment as stipulated in the Industrial Safety and Health Act Risk assessment for dangerous and non-routine work at one's workplace	〇	・Implement work risk assessment based on plans(Central Labor Accident Prevention Association⁵ method or procedure HAZOP⁶ ) Risk assessment as stipulated in the Industrial Safety and Health Act Risk assessment for dangerous and non-routine work at one's workplace
	7. Safety measures of construction and non-routine work	・Clarify work instructions and procedures and implement hazard prediction activities ・Clarification and solid performance of implementation matters such as construction start permission, safety management during construction, delivery, completion confirmation, etc. ・Providing safety information to construction contractors, thorough education of plant rules, etc.	〇	・Clarification and solid performance of implementation matters such as construction start permission, safety management during construction, delivery, completion confirmation, etc. (ongoing) ・Providing safety information in writing to construction contractors, thorough education of plant rules, etc. (ongoing) ・Clarify work instructions and procedures and implement hazard prediction activities for non-routine work (ongoing)
	8. Training and drill promotion	・Plan promotion of education and training ・Promote acquisition of qualifications ・Active introduction of awards and prize systems for voluntary safety activities	〇	・Plan promotion of education and training (ongoing) ・Promote acquisition of qualifications (ongoing) ・Active introduction of awards and prize systems for voluntary safety activities (ongoing) ・Implementation of planned training to acquire important safety skills
	9. Ensuring subcontracting safety	・Active involvement in safety management at companies to which, as a manufacturer, the Company outsources its operations ・Implementation of sufficient safety education	〇	・Active involvement in safety management at companies to which, as a manufacturer, the Company outsources its operations (ongoing) ・Implementation of sufficient safety education for temporary and contract employees (ongoing)
Occupational health	1. Create and maintain a comfortable workplace environment	・Implemented working environment measurements and promote working environment improvements based on the results ・Implement chemical substance handling education and strict wearing of chemical protective equipment as well as confirmation of compliance status for wearing protective equipment ・Appropriate implementation under the Industrial Safety and Health Law ・Appropriate reporting, communication, and consultation, as well as promotion of good communication	◎	・Realization of confortable working environment ・Ensuring an appropriate and safe working environment ・Implementation of appropriate health management ・Appropriate reporting, communication, and consultation, as well as promotion of good communication(ongoing)
Occupational health	2. Promote physical and mental health wellbeing	・Implement concrete guidance, etc. and effective utilization of health check results ・Appropriate compliance with additional inspection criteria due to regulatory amendments ・Promotion of specific activities to build mental and physical health	〇	・Implement concrete guidance, etc. and effective utilization of health check results (ongoing) ・Appropriate compliance with additional inspection criteria due to regulatory amendments of Industrial Safety and Health Law, etc. (ongoing) ・Promotion of specific activities to build mental and physical health (ongoing)

Employees and contractors health and safety

Awareness of Issues

Major Risks and Opportunities

Shin-Etsu Group approach

Performance and Outcome

Shin-Etsu Group Key Sustainability Issues