Basic Policy

For the NAGASE Group, in its aim to realize a sustainable world where people live in peace of mind, ensuring a sustainable supply chain is one key issue in its provision of diverse products and services to a global market. We strive to make the Group's supply chain one that is responsible and considerate of issues such as human rights, the labor environment (exclusion of child labor, forced labor, and discrimination, as well as avoidance of conflict between labor and management), health and safety, and the global environment (effective use of energy resources, climate change, and biodiversity).

Further, the NAGASE Group strives to manage risks that could impede the construction and maintenance of a responsible supply chain.
In accordance with the Group's Compliance Code of Conduct, employees are tasked with developing and providing products and services that provide utility to our society in consideration to human rights and to the safety of said products and services. Important risks discovered in the supply chain are shared within the Risk Management & Compliance Commitee, where countermeasures are discussed.

Considering Human Rights in Procurement Activities

In our procurement activities as well, our hope for our NAGASE Group employees is that they will act in accordance with our basic policy for responsible supply chains and in consideration of our Compliance Code of Conduct so as to prevent infringement of human rights, including inhumane or discriminatory treatment, forced labor, and child labor.
We will continue to work with our business partners to further promote a vibrant culture respecting human rights in all activities across our supply chain.

Security Trade Controls

Trade is the foundation of the NAGASE Group’s activities. To conduct appropriate trade in line with laws and regulations as a member of international society, the Security Trade Control Committee works to understand the export control situation, follow the latest revisions to the Foreign Exchange and Foreign Trade Control Law, and ascertain a detailed picture of export controls across the entire Group, while formulating related Group policies. The Item Compliance Management Council is in charge of directing and educating each business division and Group company in matters and statute updates determined by the Security Trade Control Committee. It is the responsibility of the Item Compliance Management Council to protect the Company and affiliates against the risk of illegal acts.

・Specific Import-Export Management Framework

Information about our export products, technologies, and overseas customers is stored in and managed via our proprietary Product Management System. We confirm whether certain products or Technologies are subject to restriction under the rules of the Foreign Exchange and Foreign Trade Control Law and the U.S. Export Administration Regulations. Only those products approved by the Item Compliance Management Section are put into the system as products allowed for export. Going one step beyond mere adherence to the law, we define policies for the entire NAGASE Group associated with security trade controls that, as a rule, prohibit trade of products that are military-related items or that have military applications.

・Efforts to Promote Personnel Development

The practical business of security trade controls changes every year. To keep pace with developments, the NAGASE Group encourages its employees—primarily those involved in export operations—to become Security Trade Control Associates by taking the exam offered by the Center for Information on Security Trade Controls (CISTEC).

Qualified Security Trade Associates (Cumulative)
Fiscal year ended March 31, 2017 856
Fiscal year ended March 31, 2018 890
Fiscal year ended March 31, 2019 947

Regulatory Compliance in Products

The safe handling of chemicals is an important foundation underpinning the NAGASE Group’s businesses. At NAGASE, we continue to improve product-related compliance and centralized information management, including management of chemical products. All the products we deal in are subject to our management system. This allows us to comply properly with any laws or regulations that affect our products.

・Specific Compliance Framework

The NAGASE Group monitors related laws for the chemical components and regulated effects of new products we plan to introduce to the market. We register each chemical component to ensure compliance with every country’s laws and regulations that cover particular components. Information related to these products is registered in the aforementioned Product Management System database in an effort to centralize the Group’s management of said information. By joining relevant industry organizations, we have access to the latest information regarding chemical regulations. We endeavor to pass on accurate information to relevant parties in part through our use of chemSHERPA, a tool for sharing information on chemical substances contained in products across the supply chain.

・Responding to Global Chemical Laws and Regulations

The Strategic Approach to International Chemical Management (SAICM) adopted at the 2002 World Summit on Sustainable Development—also known as the Johannesburg Summit—is aimed at ensuring that, by the year 2020, chemicals are produced and used in ways that minimize significant adverse impacts on the environment and human health. In accordance with this policy, the entire world is adopting more strict and standardized regulations concerning chemical management. Accordingly, we anticipate global regulatory trends related to chemical management, working with our overseas subsidiaries to educate, provide instructions, and adopt product management systems. In this way, we facilitate the global management of information related to chemical substances to provide accurate, up-to-date information to our business partners.

Measures in Various Countries to Implement SAICM

Region/Country Inventory GHS
Japan Chemical Substance Control Law Industrial Safety and Health Act
United States TSCA HCS(OSHA)
China China REACH Regulations on the Safe Management of Hazardous Chemicals
South Korea K-REACH Occupational Safety and Health Act
Taiwan Toxic and Chemical Substances of Concern Control Act Occupational Safety and Health Act
ASEAN Under development in each country Under development in each country

The Group’s Approved Operations and Products

Manufacture of poisonous and deleterious substances Import of poisonous and deleterious substances
General sale of poisonous and deleterious substances Manufacture of pharmaceuticals
Categories: packaging, labeling, storage
Sale of pharmaceuticals Manufacture of veterinary pharmaceuticals
Categories: packaging, labeling, storage
Wholesale of veterinary pharmaceuticals Export of narcotics, etc.
Import of narcotics, etc. Wholesale and retail of specified narcotics, etc.
Export of psychotropics Import of psychotropics
Export of stimulants raw materials Import of stimulants raw materials
Handling of stimulants raw materials Manufacture and sale of Class II medical devices
Sale of high-pressure gas (type 1) Sale of high-pressure gas (type 2)
Sale of agrochemicals Sale of fertilizers
Import of animal feed Sale of animal feed
Import of feed additives Sale of feed additives
Sale of liquor Import of alcohol
Sale of alcohol Wholesale of salt
Specified sale of salt (import/export) Construction (installation of machinery and equipment)

Measures Against Conflict Minerals

A portion of minerals supplied by regions in conflict are said to be resources providing funds for inhumane armed forces, potentially leading to infringement of human rights.
The NAGASE Group, as a party building and maintaining responsible supply chains, conducts investigations as appropriate in the event of dealing in conflict minerals.

Conflict Minerals

Of minerals mined in countries and regions in and around conflict zones, this term refers to resources providing funding for armed forces. As defined in Section 1502 of the Dodd Frank Act, these are minerals such as tungsten, tantalum, tin, and gold that are produced in the Democratic Republic of Congo and proximate nations.