Creating a Safe and Healthy Workplace Environment

Purpose of activities	Activities during fiscal 2020	Self- assessment	Targets/plans for activities from fiscal 2021 onwards
Promoting safety and health activities	Promote the Zero Occupational Accident Project	C	Continue the Zero Occupational Accident Project
	Finish conducting the Campaign to Eliminate Multiple Accidents (Top Three) at each plant*	B	Make efforts to ensure equipment safety based on risk assessments (to be implemented over a three-year period)
	Make efforts to ensure equipment safety based on risk assessments (rate of reduction of critical risks: 95%)	A
	Promote safety and health education through effective utilization of the Occupational Safety & Health Education Center and promote Virtual Reality accident simulation training	A	Continue to promote safety and health education through effective utilization of the Occupational Safety & Health Education Center and continue to promote Virtual Reality accident simulation training
	Review operation of the individual health management system	B	Promote health measures by upgrading the individual health management system
	Have discussions to promote the effective use of group analysis based on stress checks	B	Promote the effective use of group analysis based on stress checks

Self-assessment grades A: Target achieved B: Target mostly achieved C: Target not achieved

* If each plant can eliminate their top three accidents, this can reduce the total number of accidents by around 60%. As such, we will continue and develop the same elimination campaign targeting three types of accidents over a period of three years starting in 2017 in the same manner.

Basic Approach

In Chapter 2 of the MMC Group Code of Conduct, we vow to “We are committed to providing a safe and healthy environment for all our stakeholders.” This is based on the notion that, if we can’t keep our employees safe and healthy, they won’t be able to provide secure and happy lives for their families, we won’t be able to operate effectively, and we will never be able to keep on expanding as a company.

MMC Group Basic Policy on Safety and Health Management

1. We will carry out safety and health activities based on full participation from all employees, underpinned by leadership and initiative from the President and other managing personnel.
2. We will ensure that all employees comply with the Industrial Safety and Health Act and other applicable legislation, manuals and operating procedures, and establish a workplace culture whereby everyone follows the rules and ensures that others do too.
3. We will make every effort to create pleasant workplaces that are healthy for both body and mind, for all employees, through activities aimed at creating open workplaces and promoting health.
4. We will take preventive measures in accordance with Ministry of Health, Labour and Welfare guidelines on the prevention of work-related traffic accidents and improve road etiquette amongst all employees, in order to eliminate traffic accidents based on our commitment to promoting road safety activities as an example to society as a whole.

And since 2018, we have declared that among the goals represented by SCQDE enacted as the guideline to decisionmaking concerning conduct of our work (priority order), “S” which represents “Safety and Health” is the first priority.

Guideline to decisionmaking concerning conduct of our work (priority order)

Let's act while recognizing the order of priority, "SCQDE"

1	ＳSafety & Health	Safety & Health come first
2	CCompliance & Environment	Compliance & Environment to ensure fair activities
3	QQuality	Quality Products and services provided to our "customers"
4	DDelivery	Delivery dates to be met
5	EEarnings	Reasonable profit (Obtained based on “customer” trust after satisfying SCQD)

“SCQDE” shows the order of priority of our business decisions. In providing customers with our products & services, we should thoroughly fulfill SCQ at first and satisfy D. We believe that we will be able to obtain trust from customers and society by continuously executing SCQD in good faith, and this will produce a reasonable profit.

Framework

In the wake of the fire and explosion at our Yokkaichi Plant in January 2014, we launched a new Zero Occupational Accident Project in April that same year, and set about strengthening the foundations of safety and health on a groupwide scale, with the aim of eliminating serious occupational accidents resulting in four or more lost days (not causing any occupational accident resulting in four or more lost days for one year).
In the Zero Occupational Accident Project, the Zero Occupational Accident Subcommittee, which serves as a special subcommittee under the Sustainable Management Promotion Division headed by the Chief Executive Officer and consists of Safety Coordinators from the departments, checks the current situation, discusses the basic policy and specific measures, and implements them after deliberations and approval at the Executive Officers’ Meetings, and regularly reports the progress status of the measures to the Division meeting. Based on factors including occupational accidents that have occurred, the Zero Occupational Accident Subcommittee identifies priority issues that our Group should tackle and sets priority tasks for safety and health management through consultations with the Zero Accident Labor-Management Meeting and strives to make improvements through the PDCA cycle in accordance with the situations of each facility.
Implementation of each measure revolves around the Mitsubishi Materials Safety & Environment Department. We also appoint Safety Coordinators at each in-house company to share information regarding progress and issues with safety and health measures at plants/factories under their management, including Group companies, with the Safety & Environment Department via monthly meetings, and to consult regarding solutions.
We have an integrated groupwide promotion framework in place whereby matters that extend beyond the confines of individual companies are reported and discussed at the above-mentioned Zero Occupational Accident Subcommittee.
At the same time, Safety Managers, Safety Coordinators and Safety Instructors are assigned to individual plants/factories, where their role is to promote safety activities. We hold regular Groupwide Safety Manager meetings and meetings for Safety Coordinators and Safety Instructors, where we exchange openings on a wide range of occupational accident information and health and safety activities across the Group and the various business sectors in which it is involved, and endeavor to raise the level of health and safety.

Management Priorities

To expand the joint labor-management initiative to achieve zero occupational accidents, we have identified issues at the MMC Group in light of occupational accidents, etc. that occurred last year, engaged in joint labor-management discussions on the particular items to be addressed to achieve solutions, and designated management priorities on that basis. In 2019, we set out the following management priorities, and rolled out occupational safety and health management systems at each of our plants/factories accordingly.

Group-wide priorities for safety and health management (2019)

Conducting Campaign to Eliminate Multiple Accidents (Top Three) at Each Plant (Final Year)

If each plant can eliminate their top three accidents, this can reduce the total number of accidents by around 60%. As such, we have decided to expand the Campaign to Eliminate Multiple Accidents, which we conducted in 2017, continue and develop the same elimination campaign targeting three types of accidents over a period of three years starting in 2017 in the same manner, and develop the campaign into a system that will keep us accident-free in the future.

[Procedure]

1. Each plant designates what accidents to eliminate.
2. A Declaration to Eliminate Accidents is adopted at each plant about an accident selected at that plant.
3. The risks relating to the designated accidents are thoroughly identified, measures to reduce risks are considered and implemented, and the results in terms of risk reduction and accident elimination are assessed.

A permanent mechanism is established for measures to reduce risks that do not depend on temporary managerial measures, such as education and calling for vigilance.

Thorough efforts to make equipment safe (engineering measures) through risk assessments (RA)

At the core of our work on safety management priorities is our efforts to make equipment safer through engineering measures by utilizing risk assessment. We set the index for these activities as a 95% reduction rate (risk level II or below: acceptable level) of high risks (risk level III or above: unacceptable level). All plants worked to exceed this index, and as a result, we achieved an overall reduction rate of 96%.

Fiscal 2020 95% High Risk Reduction Rate Target Achievement Status Summary (totals as of end of March 2020) (excluding Group company construction businesses)

In-house companies / business divisions		2020 (fiscal year)
		Number of High Risks Identified (cumulative)	Number of High Risks Reduced (cumulative)	High Risk Reduction Rate (％)
		III or higher	III or higher→II or lower
Advanced Products	Directly controlled business sites total	1,882	1,855	99
	Group companies total	2,547	2,389	94
	Total	4,429	4,244	96
Metalworking Solutions	Directly controlled business sites total	2,052	2,052	100
	Group companies total	5,445	5,076	93
	Total	7,497	7,128	95
Metals	Directly controlled business sites total	4,161	4,096	98
	Group companies total	1,711	1,639	96
	Total	5,872	5,735	98
Cement	Directly controlled business sites total	2,804	2,741	98
	Group companies total	215	215	100
	Total	3,019	2,956	98
Environment & Energy	Group companies total	666	606	91
Affiliated	Group companies total	991	960	97
Development	Central Research Institute	364	359	99
Grand Total		22,838	21,988	96

An analysis of the types of occupational accidents occurring at the MMC Group has revealed that many occupational accidents occur due to two factors: “flawed protective and safety measures” such as incomplete safety measures for machinery and equipment, and “proximity to dangerous areas,” such as touching machinery or equipment while it is operating. To strengthen the physical measures in place by reviewing structures and mechanisms from the perspectives of the foolproof*¹ and failsafe*², we are employing thorough engineering-based action through risk assessments. Further, with respect to occupational accidents caused by “flawed operating methods” such as the use of inappropriate tools and jigs or incorrect operating procedures, we will strive to make risk assessment-based improvements including the verification of operating methods, and revised operating procedures that reflect hazard prediction.
Risk assessment is an effective means of discovering, eliminating or mitigating potential danger or harm attributable to operating practices and other work performed at a manufacturing site. At the MMC Group, we implement risk assessment activities from the perspective of workers on the production floor at each facility. We have trained risk assessment instructors to improve the ability to identify unsafe equipment states and began offering training classes from October 2015. About 520 people have taken the course as of March 2020. Centering on these instructors, it is contributing to enhancing and stimulating on-site activities.

• *1 Foolproof: A function that prevents human error from resulting in an occupational incident or disaster
• *2 Failsafe: A function ensuring that equipment will operate on the safe side in the event of mechanical malfunction, power outage or otherwise