Going Strong Corporate Social Responsibility Report 2009

| | | | page Contents Previous Contents Next Going Strong 1 About this report 2 CSR ups & downs in 2009 3 Our CSR ambitions and achievements 4 Highlights 2009 5 1 Organization and Management 6 2 The economic crisis 13 3 Our CSR strategy 18 4 Safety, health and welfare 25 5 Innovation and collaboration 32 6 Eco-Efficiency and our environmental achievements 39 7 Individual and society 50 Annex 1: List of abbreviations used 57 Annex 2: Memberships 58 Annex 3: CSR through the years 59 Annex 4 : GRI-index 61 Colophon 73

CSR REPORT 1 | | | | Dear reader, The theme for last year’s CSR report, ‘Strength in Unity’, could not have been more apt. What it meant for Teijin Aramid became evident in the crisis year of 2009. We needed to take a number of radical measures to get through the crisis. More than ever, we managed by expense, reduced the number of employees, and cut costs on all fronts. We focused on short-term Research & Development projects. Our people were asked to be extra thrifty and to make sacrifices. What we did not do was to panic. We know the value of aramid for the world and know what is the potential...

CSR REPORT 2 | | | | About this report How this report was created This report is intended to inform our stakeholders in a transparent way about our efforts in the area of Corporate Social Responsibility (CSR). Our direct and indirect stakeholders include employees, customers, suppliers, neighbors and nearby companies, governments, nongovernmental organizations (NGOs), unions, industry associations, banks, and (other units of ) Teijin Ltd. This is our seventh CSR report, something we are proud of. We are also quite proud that this report has been written entirely by our own people. This was accomplished...

CSR REPORT 3 | | | | Ups • An Eco-Efficiency Analysis pilot was completed; its results are highly promising. • An “energy day” was held to kick off the coordination of Teijin Aramid-wide energy savings activities. The activities follow the signing of the MJA-3 (multiyear agreement with the Dutch government) • The Delfzijl production site had to shut down the line temporarily. Despite the resulting decreased efficiency, the site was able to achieve a year-over-year reduction in water consumption per ton of product. • Our core values (PURE: Passion, Unity, Respect, Excellence) were introduced among...

CSR REPORT 4 | | | | CSR achievements and ambitions What did we promise for 2009? Stakeholder engagement To make a start in 2009 with stakeholder meetings (four in the context of the CSR report) and a doubling of this number in 2010. Ethics & Integrity (E&I) E&I aspects are part of our core values. An independent confidant will be appointed in 2009 for the USA, Brazil, and Shanghai. Health-related absences We are working toward further reduction in the percentage of health-related absences. In 2008 we achieved a percentage of health-related absences of 4.4%. Energy efficiency We will push for...

CSR REPORT 5 | | | | What will we do? Increase stakeholder dialogue, and particularly with our customers. Further rollout of PURE in the organization in the coming years. Our new code of conduct will appear in 2011. We are working on the further automation and use of robots at our production sites, particularly in Emmen. The expansion of our flexible team will reduce the load on our personnel. Through higher production levels and efficiency improvement programs, the plants will return to our previously achieved ambition level (2% per year v. 2005). We want to establish a baseline for our carbon...

CSR REPORT 6 | | | | | | | | | | | | | | | | | 1. Organization and management Previous Contents Next Deshima award CSR governance Management team Corporate Governance Developments in 2009 Who, what, where Core Values Strategy Our products Origin Strong foundation and streamlined structure

CSR REPORT 7 | | | | Strong foundation and streamlined structure Teijin Aramid’s mission is to be global market leader of the high performance fiber industry. To that end we are led by our strategic goals even if the crisis in 2009 reduced our rate of growth. We continue to work on sustainable operations and on better and new products. The foundation for this is formed by our four core values: Passion, Unity, Respect, and Excellence (PURE), which apply to the entire organization. Origin AKZO developed the first para-aramid in 1972. This was named Fiber X and would later become known as Arenka®....

CSR REPORT 8 | | | | Strategy Our strategy is aimed at achieving sustainable and profitable business activities, ambitious growth, and further globalization. We wish to satisfy the requirements of customers in all market segments by implementing a two-part approach. We serve the market both with high quality products developed in close consultation with the customer and with more standard types able to compete well on price in competitive market segments through economies of scale. We want to operate in new markets and work with the customer on new applications. Our ambition is also to develop...

CSR REPORT 9 | | | | Global coverage Teijin Aramid Production sites Research & Development Management team and staff Sales office Agents Good exemplary conduct by supervisors stimulates employees to exhibit the desired conduct. That is why communication on the meaning of the values for Teijin Aramid in 2009 was nearly entirely focused on the management team and the leadership team. This has resulted in a strong awareness of the importance of values for our organization and to setting a code of conduct. We have already achieved a great deal with each other through this but more time is needed...

CSR REPORT 10 | | | | The raw materials for the factories in Delfzijl are brought in by truck or pipeline. This is the production site for the monomers PPD (paraphenylenediamine) and TDC (terephthaloyl dichloride), which are the building blocks for our polymer (PPTA). The solvents are recovered in a separate plant for reuse. The polymer produced in Delfzijl provides the raw material for the spinning factory in Emmen. Here the PPTA is dissolved in concentrated sulfuric acid. The dissolved polymer is then spun into aramid yarns. The sulfuric acid is then washed out of the yarns and recovered for...