Supplying Products Based on Clear, Voluntary Standards for Harmful Chemicals

Green Procurement
NOF has already adopted procurement procedures that result in eco-friendly choices for office supplies and equipment. In the case of materials procurement, NOF defines substances that need particularly strict control as Green Procurement Standards Target Substances, and divides these substances into three categories based on current laws and regulations governing them. NOF is also examining the creation of additional in-house standards to further tighten the management of these substances. NOF plans to begin using these new standards in fiscal 2005 after screening by the Responsible Care (RC) Committee.

Management of Reagents
NOF uses a large number of reagents in its R&D activities. Many of these reagents are toxic and must be strictly controlled. In fiscal 2004, NOF appropriately disposed of all reagents that were stored but no longer used by any NOF Group company.

Material Safety Data Sheets
NOF has created Material Safety Data Sheets (MSDS) for all the products it manufactures, not just for substances where these sheets are legally required (Poisonous Material Control Law; Pollutant Release and Transfer Register Law (PRTR); Occupation Health and Safety Law). These sheets provide users with information about the potential risks and toxicity of products. NOF gathers product safety information and updates the MSDS, which are organized in a database, and constantly works to provide customers with the latest information. At the end of 2004, new Japanese Industrial Standards (JIS) that determine MSDS content come into force. NOF has already completed the revision of its MSDS in accordance with these new standards. In addition, ASEAN countries and Japan have decided to adopt the Globally Harmonized System of Classification and Labeling of Chemicals (GHS) in fiscal 2007. Currently, relevant laws are being revised and new guidelines are being created, and NOF is making preparations to conform with these changes. Furthermore, NOF is collating MSDS for all the raw materials it handles. These MSDS are being used in workplace safety training and in reviewing facilities and safety measures.

Quality Management System
Based on Responsible Care (RC) guidelines, and centered on the RC Committee, NOF is working to strengthen its quality assurance framework and create defect-free, safe products. NOF has also established in-house Quality Control Regulations and Complaint Management Regulations as part of its constant effort to raise quality. Each NOF plant has put in place quality management systems tailored to the specific characteristics of the products it manufactures and acquired ISO 9000s certification.

[Reference materials] Current status of ISO 9000s certification

Product Liability Measures
NOF has established internal Claim Treatment Regulations. Based on these regulations, NOF has created a system to rapidly and fairly resolve product liability (PL) issues by respectfully responding to consumer complaints and resolving problems smoothly by reaching agreements that satisfy both the consumer and the company. In the past five years, including fiscal 2004, there has been no litigation arising from PL issues related to NOF products.

Appropriate Management of PCBs
NOF has banned the use of equipment that contains PCBs. PCBs are carefully stored at NOF under the supervision individuals specifically selected for the task. In the future, the recycling of PCB industrial waste will begin under the guidance of the government. When recycling does commence, NOF will subcontract the appropriate recycling of stored electrical equipment (transformers, condensers and fluorescent lamp ballasts) on an as-needed basis.

Curbing the Generation of Dioxins
NOF has three incinerators conforming to the requirements for specified facilities by the Special Measures Law for Dioxins. The incinerators are located at NOF’s Amagasaki, Chidori and Oita plants. Emissions of dioxins from these incinerators in fiscal 2004 totaled 6.146mg-TEQ, with all three comfortably clearing emissions regulations. NOF will continue to make sure these incinerators are used properly.

Measures at the Disposal Stage
To ensure all waste generated by NOF, including chemicals, is disposed of properly, NOF discloses the characteristics of the waste and chooses disposal subcontractors based on the following conditions:
1. Confirm that subcontractor has permission to dispose of waste (verification of permits)
2. Inspect disposal facilities (site verification)
3. Confirm that disposal fee is appropriate
4. Confirm state of manifest at subcontractor
Based on these and other requirements, NOF selects reliable subcontractors to dispose its waste.

Part of the International HPV Initiative
Through the Japan Chemical Industry Association (JCIA), NOF is an active member of the High Production Volume (HPV) Chemicals Initiative, a global program run by the International Council of Chemical Associations (ICCA). The initiative seeks to improve hazard and toxicity data for many types of chemicals. Within the HPV framework, NOF collaborates on international projects for 21 chemicals. NOF is also the “lead company” in international consortia working on 2 of these substances. As part of these efforts, NOF submitted a report containing assessment data on docosanoic acid in November 2001. The report was submitted to the Organization for Economic Cooperation and Development (OECD) SIDS Initial Assessment Meeting 13 (SIAM13), via the Japanese government. NOF is also currently collating safety and other data on another substance, ethylenebis (stearamide), and plans to submit the results to SIAM21 scheduled for fall of 2005.

Cooperation with LRI
The Long-range Research Initiative (LRI) is another voluntary program run by the ICCA. Based on international cooperation, the initiative involves research into the long-term impact of chemicals on human health and the environment. Member countries have already started research programs and NOF is actively supporting the program through JCIA.