Asahi Glass Co. Ltd.
Annual Report 2013

Plain-text annual report

URL: http://www.agc-group.com/en/1-5-1, Marunouchi, Chiyoda-ku, Tokyo 100-8405, JAPAN Corporate Communications & Investor Relations OfficeTel: +81-3-3218-5603 Fax: +81-3-3218-5390E-mail: info.ad@agc.com CSR OfficeTel: +81-3-3218-5282 Fax: +81-3-3218-7801E-mail: csr-info@agc.comNon-Financial InformationResources that Deepen Group Communication with StakeholdersFinancial InformationThe AGC Group’s CorporateVision and Business ActivitiesAGC Report 2013(This report)Financial Review(PDF file only)CSR Websitewww.agc.com/english/csr/AGC Group Websitehttp://www.agc-group.com/enProvides information about the AGC Group more widely, timely and in more detail.For Comprehensive Information• ISO 26000: 2010 Guidance on social responsibility• Sustainability Reporting Guidelines Version 3.1 (G3.1), Global Reporting Initiative (GRI)• Environmental Reporting Guidelines (2012), Japanese Ministry of the Environment• Discussion Paper on Integrated Reporting,International Integrated Reporting Council (IIRC)Non-Financial Information Guidelines• Reporting PeriodFiscal 2012 (Jan.–Dec. 2012)Some information includes content from both fiscal 2011 and 2013.• Organizations Covered in the ReportAsahi Glass and its 202 consolidated subsidiaries (Group companies in and outside Japan)• Primary Notation and Report Targets Used in the ReportScope of This ReportJune 2013 (Last date of publication: June 2012)Date of PublicationRegarding Future Assumption, Forecasts and PlansFuture perspectives described in this report are based on the latest information available to the AGC Group at the time of editing this report. Nevertheless, please note that results and consequences may vary with fluctuations in the business environment.Reports the AGC Group’s busi-ness outline and financial infor-mation including consolidated financial statementsReports on the AGC Group’s non-financial data and its vari-ous CSR policies and organiza-tions for promoting CSR-related activitiesCSR InformationSupplement(PDF file only)Provides a comprehensive report on the AGC Group’s efforts to fulfill its social respon-sibilitiesThe AGC GroupThe AGC Group (Japan)Asahi Glass/the CompanyThe AGC Group (Asia)Same as “Organizations Covered in the Report” mentioned above.Group companies in Japan including Asahi Glass Co., Ltd.AGC Asahi Glass Co. Ltd. (on an unconsolidated basis)Group companies in Asia excluding the AGC Group (Japan)Printed on paper made with wood from forest thinning. “Morino Chonai-Kai” (Forest Neighborhood Association)—Supporting sound forest management.AGC Report 2013AGC Report 2013All rights reserved. Unauthorized reproduction of this report is a violation of applicable laws.AGC Group Vision and PoliciesOur SpiritOurShared ValuesOur Shared ValuesOur MissionInnovation & Operational Excellence•We will seek innovations in technology, product and services beyond conventional concepts and frameworks.•We will create value directed at our current and potential customer needs, accounting for changes in the business environment and, social and market evolution.•We will continuously improve all aspects of our operations striving to achieve benchmark performance.Diversity•We will respect individual diversity of varied capabilities and personalities.•We will respect cultural diversity of race, ethnicity, religion, language and nationality.•We will respect different perspectives and opinions at all times.Environment•We will contribute to creation of a sustainable society in harmony with nature as a successful and responsible global citizen.•We will strive to ensure and further improve occupational health and safety in our working environment.Integrity•We will build open and fair relation-ships with all of our stakeholders based on the highest ethical standards.•We will comply with all applicable laws and regulations.•We will fulfill our contractual and legal responsibilities to achieve customer satisfaction and trust.The Group Vision is at the root of all business operations and social activities of the AGC Group. This corporate philosophy will be carried on into the future.Group Vision BusinessEnvironmentSocialResponsibilityAGC GroupCharter ofCorporateBehaviorCode ofConductManagementPolicyGroup VisionThe Management Policy sets the course of action for all of the Group’s business activities providing social and business aspirations, guidelines and directives. It is revised as necessary to reflect changes in the business environment and circumstances of the Group.Management PolicyThe Group Charter sets forth and declares the perspectives that form the basis of our behavior to ensure that the AGC Group will remain a good corporate citizen.AGC Group Charter of Corporate BehaviorThe Code of Conduct sets forth standards to be observed by all Group members from the perspective of “Integrity” in Our Shared Values under the AGC Group Vision .AGC Group Code of ConductAs a centerpiece of the Group Vision, the AGC Group has set our mission: “Look Beyond” to make the world a brighter place. On the basis of this mission, the AGC Report 2013 is intended to comprehensibly and clearly report on the Group’s corporate vision and business activities during the fiscal year to stakeholders. The report covers specific measures and initiatives of the mid-term management plan, which aims to realize a truly strong AGC Group, as well as important tasks for fulfilling responsibili-ties to stakeholders based on the core subjects of ISO 26000 standards. AGC Group VisionEditorial PolicyContents2125313538Financial and Non-Financial HighlightsOverview of the AGC GroupGlobal NetworkBoard of Directors, Corporate Auditors and Executive OfficersMilestones4547495152Responsibility to StakeholdersCorporate GovernanceInternal Audits/Risk Management 414419AGC Group VisionContents/Editorial Policy12Towards a Truly StrongAGC GroupWe Are Now Pursuing a New Growth Path Under the Theme of “Change”CEO Message11131517The AGC Group’s New Business DomainsSpecial FeatureInitiative 1Cultivating New Growth MarketsInitiative 2Accelerating Growth through Regional Strategies Tailored to the Characteristics of every MarketInitiative 3Combining Glass and Chemical Technologies to Offer New SolutionsTransforming toBecome a Truly StrongAGC Group39Anticipate and envision the future,Have perspectives beyond our own fields of expertise, Pursue innovations, not becoming complacent with the status quo.Our Mission—We, the AGC Group, “Look Beyond” to make the world a brighter place.We will continuously:We will continue to create value worldwide, demonstrating the vast potential ofthe Group’s entire organization.Organizational GovernanceHuman Rights and Labor PracticesThe EnvironmentFair Operating PracticesCommunity Involvement and DevelopmentAGC Report 20132AGC Report 20131AGC Group Vision and PoliciesOur SpiritOurShared ValuesOur Shared ValuesOur MissionInnovation & Operational Excellence•We will seek innovations in technology, product and services beyond conventional concepts and frameworks.•We will create value directed at our current and potential customer needs, accounting for changes in the business environment and, social and market evolution.•We will continuously improve all aspects of our operations striving to achieve benchmark performance.Diversity•We will respect individual diversity of varied capabilities and personalities.•We will respect cultural diversity of race, ethnicity, religion, language and nationality.•We will respect different perspectives and opinions at all times.Environment•We will contribute to creation of a sustainable society in harmony with nature as a successful and responsible global citizen.•We will strive to ensure and further improve occupational health and safety in our working environment.Integrity•We will build open and fair relation-ships with all of our stakeholders based on the highest ethical standards.•We will comply with all applicable laws and regulations.•We will fulfill our contractual and legal responsibilities to achieve customer satisfaction and trust.The Group Vision is at the root of all business operations and social activities of the AGC Group. This corporate philosophy will be carried on into the future.Group Vision BusinessEnvironmentSocialResponsibilityAGC GroupCharter ofCorporateBehaviorCode ofConductManagementPolicyGroup VisionThe Management Policy sets the course of action for all of the Group’s business activities providing social and business aspirations, guidelines and directives. It is revised as necessary to reflect changes in the business environment and circumstances of the Group.Management PolicyThe Group Charter sets forth and declares the perspectives that form the basis of our behavior to ensure that the AGC Group will remain a good corporate citizen.AGC Group Charter of Corporate BehaviorThe Code of Conduct sets forth standards to be observed by all Group members from the perspective of “Integrity” in Our Shared Values under the AGC Group Vision .AGC Group Code of ConductAs a centerpiece of the Group Vision, the AGC Group has set our mission: “Look Beyond” to make the world a brighter place. On the basis of this mission, the AGC Report 2013 is intended to comprehensibly and clearly report on the Group’s corporate vision and business activities during the fiscal year to stakeholders. The report covers specific measures and initiatives of the mid-term management plan, which aims to realize a truly strong AGC Group, as well as important tasks for fulfilling responsibili-ties to stakeholders based on the core subjects of ISO 26000 standards. AGC Group VisionEditorial PolicyContents2125313538Financial and Non-Financial HighlightsOverview of the AGC GroupGlobal NetworkBoard of Directors, Corporate Auditors and Executive OfficersMilestones4547495152Responsibility to StakeholdersCorporate GovernanceInternal Audits/Risk Management 414419AGC Group VisionContents/Editorial Policy12Towards a Truly StrongAGC GroupWe Are Now Pursuing a New Growth Path Under the Theme of “Change”CEO Message11131517The AGC Group’s New Business DomainsSpecial FeatureInitiative 1Cultivating New Growth MarketsInitiative 2Accelerating Growth through Regional Strategies Tailored to the Characteristics of every MarketInitiative 3Combining Glass and Chemical Technologies to Offer New SolutionsTransforming toBecome a Truly StrongAGC Group39Anticipate and envision the future,Have perspectives beyond our own fields of expertise, Pursue innovations, not becoming complacent with the status quo.Our Mission—We, the AGC Group, “Look Beyond” to make the world a brighter place.We will continuously:We will continue to create value worldwide, demonstrating the vast potential ofthe Group’s entire organization.Organizational GovernanceHuman Rights and Labor PracticesThe EnvironmentFair Operating PracticesCommunity Involvement and DevelopmentAGC Report 20132AGC Report 20131President & CEOKazuhiko IshimuraCEO MessageToward a Truly Strong AGC GroupWe Are Now Pursuing a New Growth Path Under the Theme of “Change”AGC Report 20133will continue to seek out business opportunities that lead to solutions for pressing global environmental issues, while also creating the value that society expects through environment-related products.The second perspective is to increase material comfort within society. The desire for comfort and abundance in everyday life is universal. We will make the most of the AGC Group’s technological strengths to produce a broad range of new products that can help create more a comfortable living environment. We will promote these products not only in developed countries but also in emerging markets.By pursuing innovation in working toward these goals, I am confident that the AGC Group can make a significant contribution to realizing a sustainable society.In order to realize AGC’s Aspirations for 2020, we will continue to move forward with our three existing strategies: to be a Glass-technology-driven Company; providing Technology Solutions for Environment and Energy; and pursuing a Second Round of Globalization. While our business environment has undergone major changes over the past few years, there will be no change in our policy of pursuing growth via these three strategies.That said, recognizing the need to squarely confront the challenges posed by our operating environment, we will be bold about modifying our approach to implementing these strategies as well as the markets in which we pursue them. To that end, I have designated fiscal 2013 as a “Year of Change” and have reorganized the Group’s business domains accordingly.In February 2010, the AGC Group formulated its “Aspirations for 2020” as a group-wide vision for the future.In line with these aspirations, the AGC Group has devised a growth strategy that fully incorporates the perspective of sustainability. In concrete terms, we aim to achieve net sales in excess of two trillion yen, boost the earnings power of new products, environment-related products and products for emerging markets, and attain a net sales ratio of over 30% for each of these product categories. At the same time, we will work to excel as a highly profitable and growing global en-terprise that also contributes to the realization of a sus-tainable society.I want the AGC Group to achieve this from two perspectives. First, we are working to help make the global environment more sustainable. The global envi-ronment —including aspects such as environmental protection and energy and food security—forms the basis of a healthy society. Accordingly, the AGC Group The AGC Group aspires to excel as a highly prof-itable and fast-growing global enterprise making contributions to a sustainable society by:• Having strong and differentiated technologies• Incorporating environmental friendliness not only in our products but also in our production processes and business activities• Contributing to the development of fast-grow-ing regionsAGC’s Aspirations for 2020Taking a Sustainable Approach inOur Pursuit of AGC Group ExpansionWhat Should or Should Not Change in Our Pursuit of “Change”AGC Report 20134In the past, the AGC Group operated in the three business domains of Glazing, Displays, and Electronics & Energy, targeting customers in four industries: building and housing, automotive, electronics, and energy.Nevertheless, we are now seeing the birth of unprecedented new businesses spanning conventional boundar-ies, one after the other, as exemplified by Smart Cities and other cross-industrial projects. For this rea-son, it is increasingly difficult to navigate the dynamic currents in today’s business through conventional ways of thinking. Even within the AGC Group, technologies are becoming increasingly sophisticated and integrated beyond the framework of individual business divisions, as evidenced by its development and marketing of products fusing glass and chemicals technologies.In light of these circumstances, as opposed to our previous stance of positioning our business domains as core technologies linked to customer businesses, we have revised our business domains from the following three viewpoints in order to seize business opportunities that are growing beyond our conventional framework of “four industries x three components.”First of all, we have made it clear that we will solely focus on the business areas in which we can make the most of our core technologies of glass, chemicals and ceramics, without considering any other areas of busi-ness. Secondly, we have identified business domains that are expected to lead to long-term growth and have designated “Safe, Sound and Comfortable Living Spaces & Materials,” “Higher Quality Display Devices & Com-munications” and “Clean & Green Energy” as the three business domains in which we should focus resources. Lastly, by identifying customers in these new domains, we will strengthen our relationships with them while creating closer ties and promoting mutual growth.Looking ahead, we will leverage the comprehen-sive strengths of the AGC Group in these new business domains to offer value that transcends the bounds of each business division.New business domainsOld business domainsCustomerIndustriesSafe, Sound andComfortableLiving Spaces &MaterialsHigher QualityDisplay Devices &CommunicationClean & GreenEnergyCustomerTechnology(Glass/Chemicals/Ceramics)Technology(Glass/Chemicals/Ceramics)Glazing• Architectural Glass• Automotive Glass• Display Glass• Display Components• Optoelectronics Components• Energy ComponentsDisplayElectronics & EnergyElectronicsEnergyBuilding & HousingAutomotiveAGC’s BusinessesCoreTechnologiesAGC’s BusinessesBusiness Domains that Capitalize on Growing Business OpportunitiesCEO MessageAGC Report 20135The mid-term management plan outlines the measures we will implement in these new business domains between 2013 and 2015 as part of the process of realizing AGC’s Aspirations for 2020. Our biggest goals over these three years are to deal successfully with major changes in the business environment in order to become a truly strong AGC Group, and to return the Group’s performance to a growth track. As we strive for a balance between growth and financial soundness, we are targeting a return on equity of 12% and a debt-to-equity ratio of no more than 0.5.In the previous mid-term management plan, , the AGC Group did a thor-ough job of preparing the ground and planting seeds, and now several of those seeds have begun to sprout. From this point on, we will tend them carefully and nurture their growth, even as we continue to sow new seeds.Designed to realize a truly strong AGC Group, sets out two tasks: strength-ening and generating substantial results from growth foundations, and putting our business back on an upward trend.To strengthen and establish foundations that will drive future growth, we will deploy the Group’s three strategies across new business domains, cultivating a new mainstay for growth to follow our flat panel display business.Examples of products in the Safe, Sound and Comfortable Living Spaces & Materials domain include highly efficient heat insulating/shielding glass, fluo-ropolymer film, and high-performance automotive glass that cuts ultraviolet and infrared rays. Other examples include life science-related products, such as pharmaceutical and agrochemical intermediates as well as active ingredients that utilize fluorine chemical technology. The AGC Group aims to expand new product sales in these new business domains by 150% over the next three years.2008200920102011201220131,5408672,2921,6579291,000Bring the businessback toupward trend(100 million yen)05001000150020002500(Est.)1,00050020122015(Est.)(100 million yen)UP 300%20122015(Est.)0UP 150%20122015(Est.)UP 150%Safe, Sound andComfortable LivingSpaces & MaterialsHigher QualityDisplay Devices &CommunicationClean & GreenEnergyProjected Changes in Operating IncomeNew Product Sales in Each Business Domain“ -2012”“ -2015”“ - 2015”“ - 2015”A New Mid-Term Management Plan : for a Truly Strong AGC Group“ -2015”Focusing on Three Business Domains with Growth Potential while Investing Management Resources in Emerging MarketsStrengthening and Establishing Growth FoundationsAGC Report 20136A promising product in the area of Higher Quality Display Devices & Communication is specialty glass for chemical strengthening, the use of which is expanding rapidly in smartphones and other devices. At the same time, as the trend toward higher resolution displays continues, demand for lower thermal shrinkage is increasing in the market for small and medium-sized displays for smartphones. In response to this trend, we have further reduced the thermal shrinkage of our glass substrates for high-resolution liquid crystal displays. I am confident that the AGC Group is the only company that can deliver a product that offers this kind of outstanding performance. Over the next three years, we will work to increase sales of new products in this business domain by 300%.In the area of Clean & Green Energy, one promising example is the solar PV unit for vertical installation. By focusing on popularizing this product, we will help create clean energy. The novel concept of a vertical panel is that it absorbs light on two surfaces, making it possible to generate power efficiently by—for example —installing the panels as highway noise barriers, or in any other place where light will strike them from all sides. Over the next three years, we expect new product sales to increase by 150%.In addition, I anticipate great growth for specialty glass for chemical strengthening in the other two business domains, as well as in the Higher Quality Display Devices & Communication domain. By expanding applications from displays to homes and automobiles, we aim to increase sales by 500% in three years.We will also step up our regional strategies. In addition to strengthening operations in Russia and Brazil, we will establish a new regional headquarters in Singapore in 2013. From this base, we will further bolster the AGC Group’s presence in Southeast Asia, in which we have an overwhelming share of the market for products including flat glass, automotive glass, and caustic soda.By implementing these measures, we project sales in emerging markets will account for 25% of total net sales in 2015, environment-related sales for 19%, and sales of new products for 18%.Ratio of salesin emergingmarketsRatio ofenvironment-related salesRatio of salesof newproducts20094%13%14%201211%17%20%201518%19%25%202030%30%30%New business domainsComprehensive strength of the AGC GroupThree StrategiesSafe, Sound andComfortable Living Spaces &Materials Higher QualityDisplay Devices &CommunicationClean & GreenEnergyCustomerBuild Foundationsfor GrowthSecond Roundof GlobalizationTechnologySolutionsfor Environmentand EnergyGlass-technology-driven CompanyTechnology(Glass/Chemicals/Ceramics)BusinessGrowthAGC’s BusinessesProjected Sales Ratio in 2015Strengthen and Generate Substantial Results from Growth Foundations —Group’s Three Strategies in the New Business Domains—CEO MessageAGC Report 20137In our efforts to return our performance to a growth track, we will deploy the following two measures in each of our core businesses: expanding sales by establishing a solid revenue stream from growth foundations, and boosting profits by strengthening the Group’s earnings structure.The Group’s Electronics operations is positioned to recover and retain the profitability of the flat-panel display business by launching high-value-added prod-ucts, including glass substrates for high-resolution liquid crystal displays and ultra-thin flat glass, and by converting to high-efficiency manufacturing equipment that will dramatically improve the productivity of furnaces.The Glass operations will steadily take advantage of expanding demand from emerging markets, while accelerating the launch of high-value-added products, including architectural energy-saving glass and high-performance automotive glass. We are also aiming for an early recovery of performance in Europe and the United States by building a production and operation structure that reflects demand, and by concentrating on specific sales territories.The Group’s Chemicals operations is set to steadily expand profits from their foundations for growth by expanding operations in Southeast Asia, increasing sales of high-performance fluorine-related products, and strengthening the life science business.Through these measures, I believe we can make an assured recovery from our lowest point in 2012 by making the Glass and Chemicals Divisions the axes of future growth while maintaining the high profitability of the Electronics Division.To strengthen and generate substantial results from growth foundations and put our business back on an upward trend, we will fully leverage the unique strengths of the AGC Group.These strengths lie in the rich diversity cultivated over the AGC Group’s 100-year history. The first is our knowledge and expertise regarding diverse materials and technologies in glass, chemicals and ceramics. The second is our insights and capabilities to enter diverse markets accumu-lated through dialogue with its customers over a broad range of industries. The third is our strong business foundations cultivated in diverse geographical areas, which have been expanded by exercising our strengths in Southeast Asia since we first ventured into India in 1956. In addition, the Group has diverse human resources who create new value based on their diversity. We are not simply adding these strengths together. Through multiplying them, we generate synergy and turn them into the AGC Group’s powerful, comprehen-sive strengths.In my view, the mission of management is to create products and services in response to society’s expecta-tions, contribute to a sustainable society, and share the joy of growing with all stakeholders. We will carry out this mission by maximizing our comprehensive strengths and realize our vision of a truly strong AGC Group.Kazuhiko IshimuraPresident & CEOIntegrating Our Unique Diversity to Generate Group-wide Comprehensive StrengthSharing the Joy of Growth with StakeholdersReturning the Group’s Performance to a Growth TrackUsing Glass and Chemicals, in Addition to the High Profitability in Electronics, as a Growth AxisAGC Report 20138Safe, Sound andComfortable LivingSpaces & MaterialsHigher QualityDisplay Devices &CommunicationDiversity ofmarketsDiversity ofbusiness regionsDiversity of materialsand technologiesClean & Green EnergyCustomerTechnology(Glass/Chemicals/Ceramics)As the business climate continues to shift, the AGC Group is drawing on its comprehensive strengths and leveraging them as competitive advantages.One of these strengths is its diversity of materials and technologies, particularly in the areas of glass, chemistry and ceramics. It may be no exaggeration to say that the AGC Group is the only corporate enterprise in the world that possesses such a differentiated and wide range of materials and technologies. Furthermore, our policy is to carry out continuous investment in research and technology as a basis for this strength, and enhance this technological foundation in the future. Another key strength is our ability to operate in diverse markets. Through its extensive experience in dealing with customers from a broad spectrum of industries, the AGC Group has developed the ability to discern and gain access to diverse markets. By leveraging this strength, the Group has succeeded in expanding applications of its specialty glass for chemical strengthening in numerous industries, even having it adopted as cover glass for smartphones.With the diversity of business regions that have taken shape around the world, we recognize that it is essential to focus on growing markets. Urban development, the implementation of environmental regulations and the spread of information and communications technologies are all happening simultaneously in emerging markets. Since the AGC Group has gained a solid foothold in these markets, it is now in a position to capitalize on the many business opportu-nities that arise with market growth.By capitalizing on these three areas of diversity, the AGC Group intends to demonstrate its unique comprehen-sive strengths to continue creating the value needed in our era and become a truly strong corporate enterprise. With a view to achieve the AGC Group’s Aspirations for 2020 (see page 4 for details), we are undertaking two tasks set out in our mid-term management plan, :strengthening and generating substantial results from growth foundations, and putting our business back on an upward trend. To successfully complete these tasks and become a truly strong corporate enterprise, it is essential that the AGC Group draw on its accomplishments over its 100-year history and respond to the changing business environment with speed and precision. Based on this approach, we intend to pursue a wide range of measures designed to maximize the Group’s comprehensive strengths beyond the limits of its In-house Companies in markets and regions that are projected to expand. As part of these efforts, in 2011 we established a Business Development Office to pursue new business oppor-tunities in areas where the domains of the In-house Companies intersect. We took this initiative because the globalization of business and integration of industries is now happening at an accelerating pace, so the Group must respond to new business trends outside the realms of its In-house Company system. Furthermore, we reorganized the Group’s business domains in 2013 to clearly designate the markets that it should focus on and the value it can provide to consumers (see page 11 for details). Under this framework, the AGC Group can make the most of its comprehensive strengths in various businesses that extend beyond the confines of specific industries. “ -2015”Enhancing its Comprehensive Strengths, the Group Will Respond to the Changing Business Environment with Speed and PrecisionOffering Unique Value by Capitalizing on Three Kinds of DiversityYoshinori HiraiExecutive Officer, GM ofBusiness Development OfficeTransforming to Become a Truly Strong AGC GroupWe now live in an era of major economic and social upheavals. Recognizing the scope of these changes, the AGC Group has given serious consideration to how it will move forward in the future to continue growing as a truly strong corporate enterprise. Consequently, it is beginning to take on all-new challenges, capitalizing on the opportunities created by the major shifts in the business environment by applying growth strategies that leverage the Group’s comprehensive strengths.SpecialFeatureAGC Report 201310AGC Report 20139Safe, Sound andComfortable LivingSpaces & MaterialsHigher QualityDisplay Devices &CommunicationDiversity ofmarketsDiversity ofbusiness regionsDiversity of materialsand technologiesClean & Green EnergyCustomerTechnology(Glass/Chemicals/Ceramics)As the business climate continues to shift, the AGC Group is drawing on its comprehensive strengths and leveraging them as competitive advantages.One of these strengths is its diversity of materials and technologies, particularly in the areas of glass, chemistry and ceramics. It may be no exaggeration to say that the AGC Group is the only corporate enterprise in the world that possesses such a differentiated and wide range of materials and technologies. Furthermore, our policy is to carry out continuous investment in research and technology as a basis for this strength, and enhance this technological foundation in the future. Another key strength is our ability to operate in diverse markets. Through its extensive experience in dealing with customers from a broad spectrum of industries, the AGC Group has developed the ability to discern and gain access to diverse markets. By leveraging this strength, the Group has succeeded in expanding applications of its specialty glass for chemical strengthening in numerous industries, even having it adopted as cover glass for smartphones.With the diversity of business regions that have taken shape around the world, we recognize that it is essential to focus on growing markets. Urban development, the implementation of environmental regulations and the spread of information and communications technologies are all happening simultaneously in emerging markets. Since the AGC Group has gained a solid foothold in these markets, it is now in a position to capitalize on the many business opportu-nities that arise with market growth.By capitalizing on these three areas of diversity, the AGC Group intends to demonstrate its unique comprehen-sive strengths to continue creating the value needed in our era and become a truly strong corporate enterprise. With a view to achieve the AGC Group’s Aspirations for 2020 (see page 4 for details), we are undertaking two tasks set out in our mid-term management plan, :strengthening and generating substantial results from growth foundations, and putting our business back on an upward trend. To successfully complete these tasks and become a truly strong corporate enterprise, it is essential that the AGC Group draw on its accomplishments over its 100-year history and respond to the changing business environment with speed and precision. Based on this approach, we intend to pursue a wide range of measures designed to maximize the Group’s comprehensive strengths beyond the limits of its In-house Companies in markets and regions that are projected to expand. As part of these efforts, in 2011 we established a Business Development Office to pursue new business oppor-tunities in areas where the domains of the In-house Companies intersect. We took this initiative because the globalization of business and integration of industries is now happening at an accelerating pace, so the Group must respond to new business trends outside the realms of its In-house Company system. Furthermore, we reorganized the Group’s business domains in 2013 to clearly designate the markets that it should focus on and the value it can provide to consumers (see page 11 for details). Under this framework, the AGC Group can make the most of its comprehensive strengths in various businesses that extend beyond the confines of specific industries. “ -2015”Enhancing its Comprehensive Strengths, the Group Will Respond to the Changing Business Environment with Speed and PrecisionOffering Unique Value by Capitalizing on Three Kinds of DiversityYoshinori HiraiExecutive Officer, GM ofBusiness Development OfficeTransforming to Become a Truly Strong AGC GroupWe now live in an era of major economic and social upheavals. Recognizing the scope of these changes, the AGC Group has given serious consideration to how it will move forward in the future to continue growing as a truly strong corporate enterprise. Consequently, it is beginning to take on all-new challenges, capitalizing on the opportunities created by the major shifts in the business environment by applying growth strategies that leverage the Group’s comprehensive strengths.SpecialFeatureAGC Report 201310AGC Report 20139Glass fortransportation vehiclesArchitectural glassCeramic pigments forpavement paintAutomotive glassMaterials and componentsfor LED/OLED lighting Urethane materialsMaterials andcomponentsfor LED/OLEDlighting Architectural glassFuel cell-relatedmaterialsEco-friendly vehicles-relatedmaterials and components(materials for lithium-ion battery)Pharmaceutical andagrochemical intermediatesand active ingredientsFluorochemicals (Films)Materials and components for Eco-friendlyvehicles (glass-ceramics substratesfor high-power LED lighting)Fluorochemicals(Coating materials)Low-E double glazing unitGlass for solarpower systemsGlass materials and componentsfor optical equipmentGlass substrates fordisplay devicesGlass materials and componentsfor optical equipmentGlass materials and componentsfor storage devicesMaterials and components forsemiconductormanufacturing equipment Glass substrates fordisplay devicesGlass substrates fordisplay devicesSpecialty glass forchemical strengtheningTransforming to Become a Truly Strong AGC GroupAGC Group’s New Business Domains to Capitalizeon Opportunities Outside of Previous FrameworksSpecialFeatureSafe, Sound and ComfortableLiving Spaces & MaterialsBusiness DomainHigher Quality DisplayDevices & CommunicationBusiness DomainClean & Green EnergyBusiness DomainProducts and technologies for safe and secure lifestyles, and that contribute to more comfortable spacesMaterials and technologies designed to save energy and make it cleanerMaterials and technologies for improving the performance of devices in the rapidly evolving fields of telecommunications and imaging equipmentAGC Report 201312AGC Report 201311Glass fortransportation vehiclesArchitectural glassCeramic pigments forpavement paintAutomotive glassMaterials and componentsfor LED/OLED lighting Urethane materialsMaterials andcomponentsfor LED/OLEDlighting Architectural glassFuel cell-relatedmaterialsEco-friendly vehicles-relatedmaterials and components(materials for lithium-ion battery)Pharmaceutical andagrochemical intermediatesand active ingredientsFluorochemicals (Films)Materials and components for Eco-friendlyvehicles (glass-ceramics substratesfor high-power LED lighting)Fluorochemicals(Coating materials)Low-E double glazing unitGlass for solarpower systemsGlass materials and componentsfor optical equipmentGlass substrates fordisplay devicesGlass materials and componentsfor optical equipmentGlass materials and componentsfor storage devicesMaterials and components forsemiconductormanufacturing equipment Glass substrates fordisplay devicesGlass substrates fordisplay devicesSpecialty glass forchemical strengtheningTransforming to Become a Truly Strong AGC GroupAGC Group’s New Business Domains to Capitalizeon Opportunities Outside of Previous FrameworksSpecialFeatureSafe, Sound and ComfortableLiving Spaces & MaterialsBusiness DomainHigher Quality DisplayDevices & CommunicationBusiness DomainClean & Green EnergyBusiness DomainProducts and technologies for safe and secure lifestyles, and that contribute to more comfortable spacesMaterials and technologies designed to save energy and make it cleanerMaterials and technologies for improving the performance of devices in the rapidly evolving fields of telecommunications and imaging equipmentAGC Report 201312AGC Report 201311201120122015500% increase in three yearsDiversity of marketsDiversity of business regionsDiversity of materials andtechnologiesStriving to Offer New Value in All Business Domains by Maximizing the Potential of High-Value-Added Materials Making Train Travel more Pleasantwith Energy-Saving Windows thatControl the Effects of SunlightRealizing more Comfortable andReliable Instrument Operability withTouch PanelsFor TrainsForResidencesRailwayDeveloping a Lighter and moreCompact Glass with ImprovedEnergy-Saving PerformanceResidentialAutomotiveMaking Solar Panels Easier to Installby Drastically Reducing the Weightof Solar PanelsSolar Power GenerationDragontrailTM Used in a Wide Arrayof Touch Panels from Smartphonesto Personal Computers DisplaysFor DisplaysFor Solar Power PanelsClean & GreenEnergySafe, Sound andComfortable LivingSpaces & MaterialHigher Quality Display Devices &CommunicationSpecialty glass forchemical strengtheningApplying Specialty Glass forChemical Strengthening to BringNew Innovations to SocietyThe AGC Group’s diversity of materials and technologies is an advantage that it utilized to develop specialty glass for chemical strengthening. This product is scratch resistant and exhibits exceptional strength unattainable by conventional glass. As such, the Group has been supplying it to meet growing market demand as a cover glass for smartphones and other display devices. Moreover, by leveraging the capability to operate in a diversity of markets, the AGC Group seeks to develop new applications for the glass as a high-value-added material that is thin, strong, and resistant to cracking.Initiative 1: Cultivating New Growth MarketsForAutomobilesTransforming to Become a Truly Strong AGC GroupSpecialFeatureProjected Sales for Specialty Glass for Chemical StrengtheningAGC’s Dragontrail™, a specialty glass for chemical strengthening1 developed by utilizing the Group’s glass materials design capabilities, has been widely used as cover glass for smartphones, tablet computers and other devices. In addition to exhibiting superior strength and excellent scratch resistance unattainable by resin-based materials, Dragontrail™ can be produced using the float method, which is highly efficient for manufacturing glass. This allows the Group to ensure a very stable supply to customers. In 2012, the AGC Group unveiled Leoflex™, a chemically strengthened specialty glass for versatile applications. Leveraging its technological expertise and understanding of a broad range of market needs, the Group is promoting applications of Leoflex™ as a strong glass that is hard to break despite its thinness and light weight, thereby creating new value in all business domains. The AGC Group has positioned its products involving specialty glass for chemical strength-ening as growth drivers going forward, and is aiming to increase sales of these products by five times the current level over a three-year period through to 2015. By employing LeoflexTM light control double glazing unit for window panes in express trains, the weight of the glass can be reduced by 20% compared to conven-tional glass, thereby helping save energy. Utilizing the character-istics of LeoflexTM, the AGC Group is develop-ing triple glazing unit that markedly enhance insulation performance with lightweight, pliable and energy-saving features.Renowned for its superior strength, scratch resistance, and stable supply, Dragontrail™ has been adopted by world-leading brands—as well as those in fast-growing countries—as cover glass in smartphones, tablets, notebooks, Ultrabooks™ and all-in-one PCs.The AGC Group has enabled the weight of solar panels to be reduced by half compared to previous models by using LeoflexTM for the cover glass. This makes it easier for solar panels to be effectively utilized in spaces where installation is difficult due to weight restrictions. Instruments in vehicles are expected to increas-ingly feature touch panel operations in the future, and technologies are being developed to integrate the operations of various equipment such as car stereos and air conditioners. Due to the high strength, scratch resistance, and anti-reflective properties of Dragontrail™, it is now being adopted as a cover glass for such console panels.1 This is a technique for chemically strengthening the surface of glass by soaking the glass sheets in a chemical solution.AGC Report 201314AGC Report 201313201120122015500% increase in three yearsDiversity of marketsDiversity of business regionsDiversity of materials andtechnologiesStriving to Offer New Value in All Business Domains by Maximizing the Potential of High-Value-Added Materials Making Train Travel more Pleasantwith Energy-Saving Windows thatControl the Effects of SunlightRealizing more Comfortable andReliable Instrument Operability withTouch PanelsFor TrainsForResidencesRailwayDeveloping a Lighter and moreCompact Glass with ImprovedEnergy-Saving PerformanceResidentialAutomotiveMaking Solar Panels Easier to Installby Drastically Reducing the Weightof Solar PanelsSolar Power GenerationDragontrailTM Used in a Wide Arrayof Touch Panels from Smartphonesto Personal Computers DisplaysFor DisplaysFor Solar Power PanelsClean & GreenEnergySafe, Sound andComfortable LivingSpaces & MaterialHigher Quality Display Devices &CommunicationSpecialty glass forchemical strengtheningApplying Specialty Glass forChemical Strengthening to BringNew Innovations to SocietyThe AGC Group’s diversity of materials and technologies is an advantage that it utilized to develop specialty glass for chemical strengthening. This product is scratch resistant and exhibits exceptional strength unattainable by conventional glass. As such, the Group has been supplying it to meet growing market demand as a cover glass for smartphones and other display devices. Moreover, by leveraging the capability to operate in a diversity of markets, the AGC Group seeks to develop new applications for the glass as a high-value-added material that is thin, strong, and resistant to cracking.Initiative 1: Cultivating New Growth MarketsForAutomobilesTransforming to Become a Truly Strong AGC GroupSpecialFeatureProjected Sales for Specialty Glass for Chemical StrengtheningAGC’s Dragontrail™, a specialty glass for chemical strengthening1 developed by utilizing the Group’s glass materials design capabilities, has been widely used as cover glass for smartphones, tablet computers and other devices. In addition to exhibiting superior strength and excellent scratch resistance unattainable by resin-based materials, Dragontrail™ can be produced using the float method, which is highly efficient for manufacturing glass. This allows the Group to ensure a very stable supply to customers. In 2012, the AGC Group unveiled Leoflex™, a chemically strengthened specialty glass for versatile applications. Leveraging its technological expertise and understanding of a broad range of market needs, the Group is promoting applications of Leoflex™ as a strong glass that is hard to break despite its thinness and light weight, thereby creating new value in all business domains. The AGC Group has positioned its products involving specialty glass for chemical strength-ening as growth drivers going forward, and is aiming to increase sales of these products by five times the current level over a three-year period through to 2015. By employing LeoflexTM light control double glazing unit for window panes in express trains, the weight of the glass can be reduced by 20% compared to conven-tional glass, thereby helping save energy. Utilizing the character-istics of LeoflexTM, the AGC Group is develop-ing triple glazing unit that markedly enhance insulation performance with lightweight, pliable and energy-saving features.Renowned for its superior strength, scratch resistance, and stable supply, Dragontrail™ has been adopted by world-leading brands—as well as those in fast-growing countries—as cover glass in smartphones, tablets, notebooks, Ultrabooks™ and all-in-one PCs.The AGC Group has enabled the weight of solar panels to be reduced by half compared to previous models by using LeoflexTM for the cover glass. This makes it easier for solar panels to be effectively utilized in spaces where installation is difficult due to weight restrictions. Instruments in vehicles are expected to increas-ingly feature touch panel operations in the future, and technologies are being developed to integrate the operations of various equipment such as car stereos and air conditioners. Due to the high strength, scratch resistance, and anti-reflective properties of Dragontrail™, it is now being adopted as a cover glass for such console panels.1 This is a technique for chemically strengthening the surface of glass by soaking the glass sheets in a chemical solution.AGC Report 201314AGC Report 201313The AGC Group supplies numerous basic chemical products, such as caustic soda1 and sodium bicarbonate, which are essential for various industries and people’s livelihoods. The Group expanded internationally at an early stage, setting up electrolysis2 plants in Thailand in the 1960s and Indonesia in the 1980s. The AGC Group now has a major presence in Southeast Asia, a dynamic region experiencing robust demand for infrastructure development, as the number-one manufacturer in the caustic soda market. It upgraded its electrolysis facilities to expand produc-tion capacity in Thailand and Indonesia in 2011 and 2013, respectively. Looking ahead, the AGC Group intends to make the most of its diversity of business regions to accelerate business expansion while contributing to the ongoing development of each country where it operates by providing a stable supply of basic chemical products. The world’s top-level fluorochemical products are at the core of the AGC Group’s functional chemicals business. The Group supplies a wide spectrum of industries with highly advanced fluorine-based materials that exhibit extremes of temperature, chemical and weather resistance at levels unattainable by conventional resins. The Group’s life science business is also applying fluoro-chemicals as active ingredients for glaucoma treatment. Many of the Group’s fluorochemical products have gained prominence worldwide with high global market shares, particularly high-performance fluoropolymer film.Taking advantage of the diversity of business regions, the AGC Group is currently working to enhance its manufacturing and sales sites in Europe and the United States, and to expand its global supply network to include fast-growing countries such as China and Brazil. Looking forward, the Group will make full use of its chemical technologies to proactively add more value to its glass products. With its diversity of materials and technologies, the AGC Group will work to realize the potential of new businesses that only it can pursue.3 Business operators:Tobu Railway Co., Ltd. and Tobu Tower Sky Tree Co., Ltd.Photo by Shinkenchiku-shaWhen the AGC Group launched Chemical operations with the production of soda ash, a principal raw material for glass, it adopted a unique vision summed up by the slogan, “Chemistry for a Blue Planet.” Through this approach, the segment has developed products that are useful to society while also minimizing its burden on the environment. For example, it makes full use of byproducts generated by chemical reaction processes to eliminate waste. As a result, Chemicals operations has not only developed basic chemicals but also functional chemicals such as fluorine, thereby creating original high-added-value products. Moreover, the segment collects and recycles chlorofluorocarbon (CFC) in cities and develops environmental products as a way to help reduce environmental load. 1 A basic industrial chemical used as a material for chemical textile fibers, an ingredient in soap and detergents, and bleach for pulp and paper, among other applications2 Electrolysis to produce caustic soda and chlorineCreating a safe, secure, comfortable and environmentally friendly world with chemical technology.Supplying World-Leading Fluorochemicals Globally andRealizing High-Value-Added Glass through Chemical TechnologiesFunctional ChemicalsPT Asahimas Chemical in Indonesia has increased the electrolysis capacity by 30%Strengthening Locally Based Manufacturing and Sales Organizationsto Meet Growing Demand in Southeast AsiaBasic Chemical ProductsLumiflonTM, highly weather-resistant fluoropoly-mer resin for coating, was used to coat the Tokyo Sky Tree tower3.LumiflonTM exhibits excellent anti-corrosiveness and weather resistance so coatings can last long periods without deteriorating, even outdoors. By reducing the need for frequent recoating, the product helps to reduce waste and conserve resources, meaning less CO2 is emitted.AGC’s high-performance fluoropolymer film is used for air-supported domes covering plantations in the city of Rikuzentakata, Japan.For its lightweight and outstanding performance in terms of weather resistance, light transmission and design flexibility, high-performance fluoropolymer film is employed in a wide range of applications from buildings to greenhouses.Realizing the Potential for ChemicalsOperations to Expand GloballyFrom basic to functional chemical products, the AGC Group’s Chemicals operations provides products that make valuable contributions to society and a broad range of indus-tries. While working to enhance its regional strategies tailored to market needs, the Group is capitalizing on the diversity of business regions and leveraging the diversity of its materi-als and technologies to proactively develop high-value-added products by combining glass and chemistry technologies. Initiative 2: Accelerating Growth through Regional StrategiesTailored to the Characteristics of Every Market Transforming to Become a Truly Strong AGC GroupSpecialFeaturePursuing “Chemistry for a Blue Planet”Creating Original Added Value by Utilizing Chemistry to Minimize the Burden on the EnvironmentDiversity of marketsDiversity of business regionsDiversity of materials andtechnologiesAGC Report 201316AGC Report 201315The AGC Group supplies numerous basic chemical products, such as caustic soda1 and sodium bicarbonate, which are essential for various industries and people’s livelihoods. The Group expanded internationally at an early stage, setting up electrolysis2 plants in Thailand in the 1960s and Indonesia in the 1980s. The AGC Group now has a major presence in Southeast Asia, a dynamic region experiencing robust demand for infrastructure development, as the number-one manufacturer in the caustic soda market. It upgraded its electrolysis facilities to expand produc-tion capacity in Thailand and Indonesia in 2011 and 2013, respectively. Looking ahead, the AGC Group intends to make the most of its diversity of business regions to accelerate business expansion while contributing to the ongoing development of each country where it operates by providing a stable supply of basic chemical products. The world’s top-level fluorochemical products are at the core of the AGC Group’s functional chemicals business. The Group supplies a wide spectrum of industries with highly advanced fluorine-based materials that exhibit extremes of temperature, chemical and weather resistance at levels unattainable by conventional resins. The Group’s life science business is also applying fluoro-chemicals as active ingredients for glaucoma treatment. Many of the Group’s fluorochemical products have gained prominence worldwide with high global market shares, particularly high-performance fluoropolymer film.Taking advantage of the diversity of business regions, the AGC Group is currently working to enhance its manufacturing and sales sites in Europe and the United States, and to expand its global supply network to include fast-growing countries such as China and Brazil. Looking forward, the Group will make full use of its chemical technologies to proactively add more value to its glass products. With its diversity of materials and technologies, the AGC Group will work to realize the potential of new businesses that only it can pursue.3 Business operators:Tobu Railway Co., Ltd. and Tobu Tower Sky Tree Co., Ltd.Photo by Shinkenchiku-shaWhen the AGC Group launched Chemical operations with the production of soda ash, a principal raw material for glass, it adopted a unique vision summed up by the slogan, “Chemistry for a Blue Planet.” Through this approach, the segment has developed products that are useful to society while also minimizing its burden on the environment. For example, it makes full use of byproducts generated by chemical reaction processes to eliminate waste. As a result, Chemicals operations has not only developed basic chemicals but also functional chemicals such as fluorine, thereby creating original high-added-value products. Moreover, the segment collects and recycles chlorofluorocarbon (CFC) in cities and develops environmental products as a way to help reduce environmental load. 1 A basic industrial chemical used as a material for chemical textile fibers, an ingredient in soap and detergents, and bleach for pulp and paper, among other applications2 Electrolysis to produce caustic soda and chlorineCreating a safe, secure, comfortable and environmentally friendly world with chemical technology.Supplying World-Leading Fluorochemicals Globally andRealizing High-Value-Added Glass through Chemical TechnologiesFunctional ChemicalsPT Asahimas Chemical in Indonesia has increased the electrolysis capacity by 30%Strengthening Locally Based Manufacturing and Sales Organizationsto Meet Growing Demand in Southeast AsiaBasic Chemical ProductsLumiflonTM, highly weather-resistant fluoropoly-mer resin for coating, was used to coat the Tokyo Sky Tree tower3.LumiflonTM exhibits excellent anti-corrosiveness and weather resistance so coatings can last long periods without deteriorating, even outdoors. By reducing the need for frequent recoating, the product helps to reduce waste and conserve resources, meaning less CO2 is emitted.AGC’s high-performance fluoropolymer film is used for air-supported domes covering plantations in the city of Rikuzentakata, Japan.For its lightweight and outstanding performance in terms of weather resistance, light transmission and design flexibility, high-performance fluoropolymer film is employed in a wide range of applications from buildings to greenhouses.Realizing the Potential for ChemicalsOperations to Expand GloballyFrom basic to functional chemical products, the AGC Group’s Chemicals operations provides products that make valuable contributions to society and a broad range of indus-tries. While working to enhance its regional strategies tailored to market needs, the Group is capitalizing on the diversity of business regions and leveraging the diversity of its materi-als and technologies to proactively develop high-value-added products by combining glass and chemistry technologies. Initiative 2: Accelerating Growth through Regional StrategiesTailored to the Characteristics of Every Market Transforming to Become a Truly Strong AGC GroupSpecialFeaturePursuing “Chemistry for a Blue Planet”Creating Original Added Value by Utilizing Chemistry to Minimize the Burden on the EnvironmentDiversity of marketsDiversity of business regionsDiversity of materials andtechnologiesAGC Report 201316AGC Report 201315Diversity of marketsDiversity of business regionsDiversity of materials andtechnologies’10-12Actual’13-15Projection1,3421,500Layerof airConventionaltypeStructure ofLiquid Crystal DisplaysCover glasssuch asDragontrail™ AGC proprietaryresin fordirect bondingSelf-adhesive glassfor optical bondingType usingAGC's new productBack frameBack frameReflects ambient lightReflects ambient lightCoverglassResin layer fordirect bondingSelf-Adhesive Glass for Optical Bonding (As Seen from the Adhesive Side)DisplaydeviceDisplaydeviceThe AGC Group has developed self-adhesive glass for optical bonding by applying its esteemed core technologies in glass materials, organic materials, coating, and glass processing. The resin used for the direct bonding process is a material that could not have been developed without the long-established technologies accumulated in its Chemical operations. The resin is designed to automatically absorb air bubbles that arise when cover glass is laminated to the display device. A solid bond is thereby maintained without any voids or spaces. This cover glass is also suitable for IPS mode LCD devices2. This type of LCD device is vulnerable to pressure, and conventional bonding methods tend to affect image uniformity when cover glass is attached. AGC’s self-adhesive glass is highly compatible with IPS mode LCDs, effectively solving this technical issue.The cover glass can be removed and re-laminated even after it has been optically bonded. Moreover, the processes for directly bonding the cover glass during production are relatively simple as compared to previous methods, so AGC’s self-adhesive glass will help manufacturers lower their workloads and rationalize production. In recent years, cover glass has been widely used for displays in mobile devices and televisions, as a means to enable touch panel operations and protect the screens. Existing units, however, were built with a layer of air (see green text box at right) between the cover glass and display device, increasing the reflection of ambient light and diminishing contrast. This problem can be solved with self-adhesive glass for optical bonding. This product employs a highly transparent layer of resin that nearly matches the cover glass’ refractive index of light. Since it is directly bonded to the display device, it eliminates the air layer (see blue section at right), resulting in higher image quality via the display by reducing the amount of reflected ambient light. This cover glass is expected to be used in applications for displays of various sizes and purposes, including tablet computers, notebook computers, automotive display panels, wide-screen televisions, and electronic signboards. Looking ahead, the AGC Group will take sales of the product full swing.Continuous research and development from a medium- to long-term perspective is essential to build foundations for growth going forward. The AGC Group regularly formulates a Technology Outlook that takes into account long-term global shift related to such factors as energy, raw materials, population and industry trends in its business domains, in order to envision the technologies and products that will be needed in the future. On this basis, the Group maps out a Technology Roadmap to provide direction for its global technology strategies. Moreover, in its mid-term management plan, the AGC Group has designated important research and development areas with the goals of creating new products for the display market and environment- and energy-related markets, and developing manufacturing processes that can significantly improve productivity and energy conservation. By fiscal 2015, the Group plans to spend 150 billion yen on research and development, more than in the last three years. R&D during the MTP Period(100 million yen)Product HighlightsStrong Technology Base of the AGC GroupEliminating the Layer of Air to Improve Display Image QualityLeveraging an Array of Materials and Technologiesto Develop Solutions that only the AGC Group Can OfferBack: Conventional LCD with air layer (see page 18)Front: LCD using self-adhesive glass for optical bondingCompared with the conventional device, higher contrast and clearer reproduction of dark sections are realized.R&D Strategies Designed to Support a Solid Technology Platform for the AGC Group“ -2015”Self-Adhesive Glass for Optical Bonding Improves the Image Quality of DisplaysThe AGC Group has developed new technologies that enable cover glass to be directly attached to display devices with ease. The ability to combine glass and chemical technolo-gies via the Group’s research and development platform made these technologies possible. Through their application, the AGC Group has successfully commercialized self-adhesive glass for optical bonding1. This product represents a new solution for significantly improving the image quality of displays.Initiative 3: Combining Glass and Chemical Technologiesto Offer New SolutionsTransforming to Become a Truly Strong AGC GroupSpecialFeature1 Used with cover glass and display devices, optical bonding optimizes the refractive index of resin to minimize the loss of light for enhanced visibility.2 IPS stands for “In-Plane Switching,” an IPS panel is a type of liquid crystal display that has been widely adopted, especially for mobile devices.AGC Report 201318AGC Report 201317Diversity of marketsDiversity of business regionsDiversity of materials andtechnologies’10-12Actual’13-15Projection1,3421,500Layerof airConventionaltypeStructure ofLiquid Crystal DisplaysCover glasssuch asDragontrail™ AGC proprietaryresin fordirect bondingSelf-adhesive glassfor optical bondingType usingAGC's new productBack frameBack frameReflects ambient lightReflects ambient lightCoverglassResin layer fordirect bondingSelf-Adhesive Glass for Optical Bonding (As Seen from the Adhesive Side)DisplaydeviceDisplaydeviceThe AGC Group has developed self-adhesive glass for optical bonding by applying its esteemed core technologies in glass materials, organic materials, coating, and glass processing. The resin used for the direct bonding process is a material that could not have been developed without the long-established technologies accumulated in its Chemical operations. The resin is designed to automatically absorb air bubbles that arise when cover glass is laminated to the display device. A solid bond is thereby maintained without any voids or spaces. This cover glass is also suitable for IPS mode LCD devices2. This type of LCD device is vulnerable to pressure, and conventional bonding methods tend to affect image uniformity when cover glass is attached. AGC’s self-adhesive glass is highly compatible with IPS mode LCDs, effectively solving this technical issue.The cover glass can be removed and re-laminated even after it has been optically bonded. Moreover, the processes for directly bonding the cover glass during production are relatively simple as compared to previous methods, so AGC’s self-adhesive glass will help manufacturers lower their workloads and rationalize production. In recent years, cover glass has been widely used for displays in mobile devices and televisions, as a means to enable touch panel operations and protect the screens. Existing units, however, were built with a layer of air (see green text box at right) between the cover glass and display device, increasing the reflection of ambient light and diminishing contrast. This problem can be solved with self-adhesive glass for optical bonding. This product employs a highly transparent layer of resin that nearly matches the cover glass’ refractive index of light. Since it is directly bonded to the display device, it eliminates the air layer (see blue section at right), resulting in higher image quality via the display by reducing the amount of reflected ambient light. This cover glass is expected to be used in applications for displays of various sizes and purposes, including tablet computers, notebook computers, automotive display panels, wide-screen televisions, and electronic signboards. Looking ahead, the AGC Group will take sales of the product full swing.Continuous research and development from a medium- to long-term perspective is essential to build foundations for growth going forward. The AGC Group regularly formulates a Technology Outlook that takes into account long-term global shift related to such factors as energy, raw materials, population and industry trends in its business domains, in order to envision the technologies and products that will be needed in the future. On this basis, the Group maps out a Technology Roadmap to provide direction for its global technology strategies. Moreover, in its mid-term management plan, the AGC Group has designated important research and development areas with the goals of creating new products for the display market and environment- and energy-related markets, and developing manufacturing processes that can significantly improve productivity and energy conservation. By fiscal 2015, the Group plans to spend 150 billion yen on research and development, more than in the last three years. R&D during the MTP Period(100 million yen)Product HighlightsStrong Technology Base of the AGC GroupEliminating the Layer of Air to Improve Display Image QualityLeveraging an Array of Materials and Technologiesto Develop Solutions that only the AGC Group Can OfferBack: Conventional LCD with air layer (see page 18)Front: LCD using self-adhesive glass for optical bondingCompared with the conventional device, higher contrast and clearer reproduction of dark sections are realized.R&D Strategies Designed to Support a Solid Technology Platform for the AGC Group“ -2015”Self-Adhesive Glass for Optical Bonding Improves the Image Quality of DisplaysThe AGC Group has developed new technologies that enable cover glass to be directly attached to display devices with ease. The ability to combine glass and chemical technolo-gies via the Group’s research and development platform made these technologies possible. Through their application, the AGC Group has successfully commercialized self-adhesive glass for optical bonding1. This product represents a new solution for significantly improving the image quality of displays.Initiative 3: Combining Glass and Chemical Technologiesto Offer New SolutionsTransforming to Become a Truly Strong AGC GroupSpecialFeature1 Used with cover glass and display devices, optical bonding optimizes the refractive index of resin to minimize the loss of light for enhanced visibility.2 IPS stands for “In-Plane Switching,” an IPS panel is a type of liquid crystal display that has been widely adopted, especially for mobile devices.AGC Report 201318AGC Report 201317Material issues for the AGC GroupMaterial issues for stakeholdersIssues for whichadditionalmeasures aredeemed unnecessaryIssues for whicha framework isto be developedIssues for whichinformation is tocontinue tobe collectedSocietyGlobal EnvironmentAGCGroupIssues for whicha framework isto be developedand a commitmentmade to societyMeeting with business partners (Japan)BusinessPartnersCustomersEmployees andtheir FamiliesLocalCommunitiesShareholders andInvestorsGovernmentsNote: Core subjects and issues are based on ISO 26000.Material IssuesCore subjectsIssues:Organizational Governance•Decision-making processes and structuresP. 211Material IssuesCore subjectsIssues:Human Rights and Labor Practices•Conditions of work and social protection•Human development and training in the workplace•Health and safety at workP. 2523Material IssuesCore subjectsIssues:The Environment•Prevention of pollution•Climate change mitigation and adaptation•Sustainable resource useP. 31Material IssuesCore subjectsIssues:Fair Operating Practices•Fair competition•Anti-corruption•Promoting social responsibility in the value chainP. 354Creation and Review of the CSR Monitoring SheetSTEP1Implementation of Communications within the GroupSTEP2Target-Setting and Performance Reportingfor Material IssuesSTEP3•Regular stockholders’ meetings•Financial settlement briefings•Information sessions for investors•Facility tours•The newsletter for shareholders, AGC Review Etc.•The Group’s in-house magazine, We are AGC!•Information over the Intranet•Opportunities to exchange views directly with the CEO•Employee satisfaction surveys•Help Lines•Labor-management talks Etc.•Satisfaction surveys•Social gatherings •Dialogue through the Asahi Glass Supplier’s Association Etc.•Information dissemination with press releases•Exhibition booths at trade shows•AGC studio showroom•Customer centers Etc.•Plant tours, job training•Employee participation in local events•Social contribution activities Etc.•Periodic opinion exchanges•Cooperation on individual projects Etc.•Dialogue through economic organizations and industry associations•Dialogue and cooperation with local governments•Social contribution activities Etc.NPOs/NGOsHolding a seminar at AGC studioEarnings presentation (Japan)The Group’s in-house magazine,We are AGC!Volunteer activities (South Korea)Site dialogue (Thailand)Receiving the CSR-DIW ContributionAward (Thailand)In fiscal 2011, the AGC Group began to develop a CSR monitoring framework based on ISO 26000 to assess the Group’s CSR activities from the perspective of stakeholders and strengthen measures and policies that benefit the community. Within the matrix of CSR issues established in this framework, targets and results regarding issues for which frameworks must be developed and commitments to society made are reported to stakeholders through the AGC Report and other channels.In addition, CSR issues are periodically reviewed to reflect social and business trends. In fiscal 2012, Sustainable resource use and Promoting social responsibility in the value chain were elevated within the matrix to “Issues for which a framework is to be developed and a commitment made to society.”Information Disclosure Committee holds regular meetings to deliberate and decide on the need to disclose information related to matters under discussion by the Management Committee and Board of Directors, based on disclosure rules of the stock exchange. Furthermore, the AGC Group is promoting interactive communication with stakeholders, providing various opportunities to incorporate their opinions into management plans.The corporate behavior of the AGC Group is based in its relations, not only with customers, but with all stakeholders, including shareholders, investors, business partners, govern-ments, NPOs/NGOs, local communities, and employees and their families. The AGC Group actively discloses corporate informa-tion to stakeholders in a timely and appropriate manner. To manage the prompt disclosure of information, the Timely Matrix of CSR IssuesCommunication with StakeholdersIn order to fulfill the mission set forth in the Group Vision, the AGG Group adopts behaviors based on “Our Shared Values” (see page 1) with an aim to gain the trust and meet the expectations of society, while contributing to the creation of a sustainable society. In addition, the AGC Group has established the “AGC Group Charter of Corporate Behavior” to more concretely demonstrates values-based conduct.”Responsibility to StakeholdersDeveloping the CSR Monitoring Framework from a Stakeholder PerspectiveProactive Communication with StakeholdersNEWNEWCSR Monitoring FrameworkCSR Promotion System, CSR Monitoring Framework (detail)www.agc.com/english/csr/agcgroupcsr/system.htmlIssues for which a Framework Is to be Developedand a Commitment Made to SocietyAbout the icons on each page:Related data can be found in the CSR Information Supplement (PDF) www.agc.com/english/csr/book/Related information can be found on the CSR WebsitePDF“Charter of Corporate Behavior (full text)” CSR Information Supplement (PDF) P. 1For more information on stakeholder communication (detail)www.agc.com/english/csr/communication/WEBPDFWEBWEBAGC Report 201320AGC Report 201319Material issues for the AGC GroupMaterial issues for stakeholdersIssues for whichadditionalmeasures aredeemed unnecessaryIssues for whicha framework isto be developedIssues for whichinformation is tocontinue tobe collectedSocietyGlobal EnvironmentAGCGroupIssues for whicha framework isto be developedand a commitmentmade to societyMeeting with business partners (Japan)BusinessPartnersCustomersEmployees andtheir FamiliesLocalCommunitiesShareholders andInvestorsGovernmentsNote: Core subjects and issues are based on ISO 26000.Material IssuesCore subjectsIssues:Organizational Governance•Decision-making processes and structuresP. 211Material IssuesCore subjectsIssues:Human Rights and Labor Practices•Conditions of work and social protection•Human development and training in the workplace•Health and safety at workP. 2523Material IssuesCore subjectsIssues:The Environment•Prevention of pollution•Climate change mitigation and adaptation•Sustainable resource useP. 31Material IssuesCore subjectsIssues:Fair Operating Practices•Fair competition•Anti-corruption•Promoting social responsibility in the value chainP. 354Creation and Review of the CSR Monitoring SheetSTEP1Implementation of Communications within the GroupSTEP2Target-Setting and Performance Reportingfor Material IssuesSTEP3•Regular stockholders’ meetings•Financial settlement briefings•Information sessions for investors•Facility tours•The newsletter for shareholders, AGC Review Etc.•The Group’s in-house magazine, We are AGC!•Information over the Intranet•Opportunities to exchange views directly with the CEO•Employee satisfaction surveys•Help Lines•Labor-management talks Etc.•Satisfaction surveys•Social gatherings •Dialogue through the Asahi Glass Supplier’s Association Etc.•Information dissemination with press releases•Exhibition booths at trade shows•AGC studio showroom•Customer centers Etc.•Plant tours, job training•Employee participation in local events•Social contribution activities Etc.•Periodic opinion exchanges•Cooperation on individual projects Etc.•Dialogue through economic organizations and industry associations•Dialogue and cooperation with local governments•Social contribution activities Etc.NPOs/NGOsHolding a seminar at AGC studioEarnings presentation (Japan)The Group’s in-house magazine,We are AGC!Volunteer activities (South Korea)Site dialogue (Thailand)Receiving the CSR-DIW ContributionAward (Thailand)In fiscal 2011, the AGC Group began to develop a CSR monitoring framework based on ISO 26000 to assess the Group’s CSR activities from the perspective of stakeholders and strengthen measures and policies that benefit the community. Within the matrix of CSR issues established in this framework, targets and results regarding issues for which frameworks must be developed and commitments to society made are reported to stakeholders through the AGC Report and other channels.In addition, CSR issues are periodically reviewed to reflect social and business trends. In fiscal 2012, Sustainable resource use and Promoting social responsibility in the value chain were elevated within the matrix to “Issues for which a framework is to be developed and a commitment made to society.”Information Disclosure Committee holds regular meetings to deliberate and decide on the need to disclose information related to matters under discussion by the Management Committee and Board of Directors, based on disclosure rules of the stock exchange. Furthermore, the AGC Group is promoting interactive communication with stakeholders, providing various opportunities to incorporate their opinions into management plans.The corporate behavior of the AGC Group is based in its relations, not only with customers, but with all stakeholders, including shareholders, investors, business partners, govern-ments, NPOs/NGOs, local communities, and employees and their families. The AGC Group actively discloses corporate informa-tion to stakeholders in a timely and appropriate manner. To manage the prompt disclosure of information, the Timely Matrix of CSR IssuesCommunication with StakeholdersIn order to fulfill the mission set forth in the Group Vision, the AGG Group adopts behaviors based on “Our Shared Values” (see page 1) with an aim to gain the trust and meet the expectations of society, while contributing to the creation of a sustainable society. In addition, the AGC Group has established the “AGC Group Charter of Corporate Behavior” to more concretely demonstrates values-based conduct.”Responsibility to StakeholdersDeveloping the CSR Monitoring Framework from a Stakeholder PerspectiveProactive Communication with StakeholdersNEWNEWCSR Monitoring FrameworkCSR Promotion System, CSR Monitoring Framework (detail)www.agc.com/english/csr/agcgroupcsr/system.htmlIssues for which a Framework Is to be Developedand a Commitment Made to SocietyAbout the icons on each page:Related data can be found in the CSR Information Supplement (PDF) www.agc.com/english/csr/book/Related information can be found on the CSR WebsitePDF“Charter of Corporate Behavior (full text)” CSR Information Supplement (PDF) P. 1For more information on stakeholder communication (detail)www.agc.com/english/csr/communication/WEBPDFWEBWEBAGC Report 201320AGC Report 201319Percentage of Employees Subject to Personal Certification Submissions% (approx. 40,000)81At Hanwook Techno Glass, all employees undertake compli-ance training on a continuous basis. The training includes devices to pique trainee’ interest and increase understanding, such as using the local news and uniquely produced visuals as training materials.In fiscal 2012, the training made use of actual cases for ease of understanding, such as an incident involving the embezzlement of public funds in South Korea. In addition, a PDCA cycle is being implemented: trainees are given a test at the end of the training to gauge their level of understanding, and the resulting information is put to use in the following year’s training. This system is being introduced at other Korean Group companies as well.In 2009, AGC Flat Glass (Thailand) Public (AFT) obtained the CSR-DIW certification, the standard based on ISO 26000 in Thailand set by the Ministry of Industry’s Department of Industrial Works (DIW). AFT has since been taking a leading role in encouraging Thai industry to engage in CSR activities, and has helped expand the number of companies obtaining CSR-DIW certification. In recognition of these efforts, AFT received the CSR-DIW Contribution Award for the third consecutive year in fiscal 2012. The award was given to only 200 (0.14 %) among about 140,000 compa-nies operating factories in Thailand. AFT will continue its partici-pation in the CSR-DIW initiative as it further develops its CSR activities.In order to renew awareness of compliance and to take a fresh look at business affairs and workplaces, the AGC Group requires employees to periodically submit written pledges to observe the AGC Group Code of Conduct.In fiscal 2012, 40,000 employees are set as subject to personal certification submissions, which is equivalent to 81% of all Group employees.Compliance training specifically for shop-floor workers has been developed by AGC Glass Europe. It is aimed at ensuring common knowledge and awareness of ethics, regard-less of country or plant. This training uses original material designed to make compliance more appeal-ing: the code of conduct is illustrated with cartoons and focuses on worker-relevant content. Qualified internal instruc-tors are to train the workers through a quiz-based program, making compliance training more enjoyable. Training has successfully started in the pilot automotive plant of Fleurus (Belgium) and should be implemented throughout Europe in 2013.1 Indicates training implemented directly by the compliance committee office in Asia including Japan, Europe and North America only. Training implemented by Group companies is not included.The management of the AGC Group strives to achieve efficient and fully transparent operations as it works to undertake proper and effective decision-making and management execution.DoFiscal 2012 major initiative resultsSelf-evaluationFiscal 2013 targetsCheckActPlanFiscal 2012 targetsISO 26000 related actions and expectations (major issues)AA123AAGC Flat Glass (Thailand) PublicCSR Recognized by the Ministry of Industry in ThailandCSR-DIW Contribution AwardElectronics CompanyCompliance Training in South KoreaThe Compliance TrainingKey Performance DataApproximately 40,000 Members, 81% of All Employees, Are Set as Subject to Submission of Personal Certification on the Code of Conduct“AGC Glass EuropeVice-President, Public Affairs & Risk Management DirectorChairman of Europe Compliance CommitteeEmmanuel Hazard”Shared Compliance Training for Shop-Floor Workers in EuropeResponsibility to StakeholdersOrganizational Governance•Implementation of timely information delivery regarding performance and measures to stakeholders outside the company through PR and IR functions•Publication of the AGC Report 2012, an integrated version of the former AGC Report (information regarding the company and its business) and the CSR Report•Selection by the DJSI World Index, a major international socially responsible investing (SRI) index•Revision of the AGC Group Charter of Corporate Behavior in response to changes in social trends. Revised content is shared within the Group through In-house magazines and other methods•Nurture an environment in which the principle of social responsibility (accountability, transparency) is practicedDecision-making processes and structuresContinue to ensure effective commu-nications in and outside the GroupContinue to ensure effective communica-tions in and outside the Group•Use the AGC Report to communicate the stance and efforts of the AGC Group with regard to promoting business and CSR activities in a way that is easier to understand•Be selected by major SRI Indexes by appropriately responding to the demands of society through communications with stockholders, investors and the media, and by moving forward with information disclosure•Continue to gain society’s trust by conducting timely and appropriate disclosure•Publish an integrated report to further clarify the AGC Group’s stance and efforts regarding the promotion of business and CSR initiatives as a single entity•Enhance communications both in and outside the Group to establish a stronger basis for CSR activities•Conducted internal audits at 57 sites in the Group, placing particular importance on the Group’s global uniformity and covering the establishment of a framework for complying with antitrust laws and protecting confidential information•Conducted 23 theme audits targeting the completion and application status of the BCPs across Group companies in Asia including Japan•Periodically review and evaluate the governance processDecision-making processes and structuresImplementing effective audits and promoting the PDCA cycle•Continue conducting audits of the creation of frameworks in the Group for observing antitrust laws and measures for preventing leakage of confidential information•Conduct theme audits targeting the completion and application of the BCPs across Group companies in Asia including JapanImplementing effective audits and promoting the PDCA cycle•Continue audits related to the global antitrust law observance system and the creation of mechanisms to prevent leakage of confidential information •Conduct theme audits targeting the completion and application of the business continuity plan (BCP) across Group companies in Asia including Japan•Revision of the AGC Group Code of Conduct and creation of booklets in editions geared for major countries and regions•Approximately 12,000 employees (Japan) and 1,200 employees (North America) received online training (e-learning) and 3,200 employees (Japan) and 3,400 employees (Europe and America) received group training in compliance1•Number of employees subject to submitting Personal Certifications on the Code of Conduct is about 40,000, representing 81% of all Group employees•Nurture an environment in which the principle of social responsibility (ethical behavior, respect for the rule of law) is practicedDecision-making processes and structures•Complete revisions of the AGC Group Code of Conduct (12 types in 18 languages) and promote them throughout the Group•Continue to conduct ongoing compliance training and online training programs for Group employees•Further expand the scope of Group employees requested to submit Personal Certifications on the Code of Conduct (employees subject to alternate policies if the system renders the submission of certifications difficult)Continue to promote complianceContinue to promote compliance•Revise the Group Code of Conduct •Conduct ongoing compliance training and online training programs for all Group employees•Further expand the scope of Group employees requested to submit Personal Certifications on the Code of ConductCriteria for Self-evaluationA: Satisfactory level, in which the intended target has been achievedB: Almost satisfactory level, in which a part of the intended target has not yet been achieved and some issues still remainC: Unsatisfactory level, in which the intended target has not been achievedFair Operating PracticesThe EnvironmentHuman Rights andLabor PracticesOrganizationalGovernanceCommunity Involvementand DevelopmentAGC Report 201322AGC Report 201321Percentage of Employees Subject to Personal Certification Submissions% (approx. 40,000)81At Hanwook Techno Glass, all employees undertake compli-ance training on a continuous basis. The training includes devices to pique trainee’ interest and increase understanding, such as using the local news and uniquely produced visuals as training materials.In fiscal 2012, the training made use of actual cases for ease of understanding, such as an incident involving the embezzlement of public funds in South Korea. In addition, a PDCA cycle is being implemented: trainees are given a test at the end of the training to gauge their level of understanding, and the resulting information is put to use in the following year’s training. This system is being introduced at other Korean Group companies as well.In 2009, AGC Flat Glass (Thailand) Public (AFT) obtained the CSR-DIW certification, the standard based on ISO 26000 in Thailand set by the Ministry of Industry’s Department of Industrial Works (DIW). AFT has since been taking a leading role in encouraging Thai industry to engage in CSR activities, and has helped expand the number of companies obtaining CSR-DIW certification. In recognition of these efforts, AFT received the CSR-DIW Contribution Award for the third consecutive year in fiscal 2012. The award was given to only 200 (0.14 %) among about 140,000 compa-nies operating factories in Thailand. AFT will continue its partici-pation in the CSR-DIW initiative as it further develops its CSR activities.In order to renew awareness of compliance and to take a fresh look at business affairs and workplaces, the AGC Group requires employees to periodically submit written pledges to observe the AGC Group Code of Conduct.In fiscal 2012, 40,000 employees are set as subject to personal certification submissions, which is equivalent to 81% of all Group employees.Compliance training specifically for shop-floor workers has been developed by AGC Glass Europe. It is aimed at ensuring common knowledge and awareness of ethics, regard-less of country or plant. This training uses original material designed to make compliance more appeal-ing: the code of conduct is illustrated with cartoons and focuses on worker-relevant content. Qualified internal instruc-tors are to train the workers through a quiz-based program, making compliance training more enjoyable. Training has successfully started in the pilot automotive plant of Fleurus (Belgium) and should be implemented throughout Europe in 2013.1 Indicates training implemented directly by the compliance committee office in Asia including Japan, Europe and North America only. Training implemented by Group companies is not included.The management of the AGC Group strives to achieve efficient and fully transparent operations as it works to undertake proper and effective decision-making and management execution.DoFiscal 2012 major initiative resultsSelf-evaluationFiscal 2013 targetsCheckActPlanFiscal 2012 targetsISO 26000 related actions and expectations (major issues)AA123AAGC Flat Glass (Thailand) PublicCSR Recognized by the Ministry of Industry in ThailandCSR-DIW Contribution AwardElectronics CompanyCompliance Training in South KoreaThe Compliance TrainingKey Performance DataApproximately 40,000 Members, 81% of All Employees, Are Set as Subject to Submission of Personal Certification on the Code of Conduct“AGC Glass EuropeVice-President, Public Affairs & Risk Management DirectorChairman of Europe Compliance CommitteeEmmanuel Hazard”Shared Compliance Training for Shop-Floor Workers in EuropeResponsibility to StakeholdersOrganizational Governance•Implementation of timely information delivery regarding performance and measures to stakeholders outside the company through PR and IR functions•Publication of the AGC Report 2012, an integrated version of the former AGC Report (information regarding the company and its business) and the CSR Report•Selection by the DJSI World Index, a major international socially responsible investing (SRI) index•Revision of the AGC Group Charter of Corporate Behavior in response to changes in social trends. Revised content is shared within the Group through In-house magazines and other methods•Nurture an environment in which the principle of social responsibility (accountability, transparency) is practicedDecision-making processes and structuresContinue to ensure effective commu-nications in and outside the GroupContinue to ensure effective communica-tions in and outside the Group•Use the AGC Report to communicate the stance and efforts of the AGC Group with regard to promoting business and CSR activities in a way that is easier to understand•Be selected by major SRI Indexes by appropriately responding to the demands of society through communications with stockholders, investors and the media, and by moving forward with information disclosure•Continue to gain society’s trust by conducting timely and appropriate disclosure•Publish an integrated report to further clarify the AGC Group’s stance and efforts regarding the promotion of business and CSR initiatives as a single entity•Enhance communications both in and outside the Group to establish a stronger basis for CSR activities•Conducted internal audits at 57 sites in the Group, placing particular importance on the Group’s global uniformity and covering the establishment of a framework for complying with antitrust laws and protecting confidential information•Conducted 23 theme audits targeting the completion and application status of the BCPs across Group companies in Asia including Japan•Periodically review and evaluate the governance processDecision-making processes and structuresImplementing effective audits and promoting the PDCA cycle•Continue conducting audits of the creation of frameworks in the Group for observing antitrust laws and measures for preventing leakage of confidential information•Conduct theme audits targeting the completion and application of the BCPs across Group companies in Asia including JapanImplementing effective audits and promoting the PDCA cycle•Continue audits related to the global antitrust law observance system and the creation of mechanisms to prevent leakage of confidential information •Conduct theme audits targeting the completion and application of the business continuity plan (BCP) across Group companies in Asia including Japan•Revision of the AGC Group Code of Conduct and creation of booklets in editions geared for major countries and regions•Approximately 12,000 employees (Japan) and 1,200 employees (North America) received online training (e-learning) and 3,200 employees (Japan) and 3,400 employees (Europe and America) received group training in compliance1•Number of employees subject to submitting Personal Certifications on the Code of Conduct is about 40,000, representing 81% of all Group employees•Nurture an environment in which the principle of social responsibility (ethical behavior, respect for the rule of law) is practicedDecision-making processes and structures•Complete revisions of the AGC Group Code of Conduct (12 types in 18 languages) and promote them throughout the Group•Continue to conduct ongoing compliance training and online training programs for Group employees•Further expand the scope of Group employees requested to submit Personal Certifications on the Code of Conduct (employees subject to alternate policies if the system renders the submission of certifications difficult)Continue to promote complianceContinue to promote compliance•Revise the Group Code of Conduct •Conduct ongoing compliance training and online training programs for all Group employees•Further expand the scope of Group employees requested to submit Personal Certifications on the Code of ConductCriteria for Self-evaluationA: Satisfactory level, in which the intended target has been achievedB: Almost satisfactory level, in which a part of the intended target has not yet been achieved and some issues still remainC: Unsatisfactory level, in which the intended target has not been achievedFair Operating PracticesThe EnvironmentHuman Rights andLabor PracticesOrganizationalGovernanceCommunity Involvementand DevelopmentAGC Report 201322AGC Report 201321The AGC Group is a member of the World Business Council for Sustainable Development (WBCSD) along with about 200 other companies around the world.Additionally, AGC Flat Glass (Thailand) Public participated in the CSR-DIW Initiative promoted by the Thailand Ministry of Industry’s Department of Industrial Works (DIW) to gain CSR certification based on ISO 26000 standards. Asahi Glass is a member of the Council for Better Corporate Citizenship (CBCC) and Group compa-nies are also actively involved in initiatives in their respective countries and regions.In order to maintain the independence of internal auditing divisions and implement effective and efficient auditing, based on the internal audit system (see page 44), the auditing divisions promote the improvement of the organization by monitoring them, while the global leader promptly reports the results to the Group CEO and periodically submits reports to the Board of Corporate Auditors and the Board of Directors.The Group gives global priority to certain audit items. In fiscal 2012, for the second fiscal year in a row, observance of antitrust law and management of confidential information were set as priority items. In addition, on top of each organization’s regular audits, the region of Asia including Japan is implement-ing theme audits, in which a theme is established and the regulation status is audited across the organization. In fiscal 2012, audits of the maintenance and application status of the BCP regarding natural disasters were implemented at 23 locations in four countries.In 2011, the Group began implementing pre-operation audits, in which the development status of new companies’ internal controls is audited before the companies begin operating. In 2012, pre-operation audits were implemented for new companies in China and Brazil.The AGC Group has established three compliance commit-tees in the regions of Europe, North America and Asia including Japan, below the Global Compliance Leader. Each compli-ance committee plans, prepares and implements compliance programs and then monitors its region’s compliance efforts. Further, the committees hold global compliance meetings to draw up policies, measures and other matters for the Group as a whole, the results of which are reported to the Board of Directors. In addition, the AGC Group has established a guideline for reporting compliance issues to promptly report information on serious violations of compliance to top management.The AGC Group has established compliance help lines2 for the Group as a whole and for each individual company to serve as a consultation service on compliance-related issues. To encourage employees to use the service, the Group protects the anonymity of callers and strictly forbids any act of retaliation against anyone who makes a report in good faith. When users offer their real names, efforts are made to facilitate effective two-way communication and provide feedback on the status and results of handling reported problems.In order to promote its Code of Conduct globally, the AGC Group provides various training opportunities to its employ-ees around the world.For example, principally in Japan, Europe and North America, online training is continuously implemented for those with e-mail addresses. In Japan, questions from a previous session for which the rate of correct answers had been low were incorporated again in fiscal 2012, with the goal of strengthening understanding. In Europe and North America, the Group implements online training on a predetermined theme on a regular basis.In Europe, in addition to online training, the AGC Group strives to train the leaders of each group as compliance instructors, who will lead to conduct classroom training for their subordinates. Materials incorpo-rate illustrations and quizzes and are designed to be easy to understand.The AGC Group Code of Conduct was established in June 2008 to ensure that all members of the AGC Group share the same values. The code comprises global requirements of business conduct for all employees in the Group to follow, as well as regional supplements that take into account the differing laws and business customs of respective countries and regions and include items to supplement the global requirements.In fiscal 2012, the Code of Conduct was revised based on changes in social conditions and on revisions to laws in countries where the Group operates, while Group-wide needs were taken into consid-eration from the perspective of compliance.1 DJSI is the SRI index created jointly by Dow Jones in the United States and Sustainability Asset Management (SAM) in Switzerland.As in 2011, the AGC Group was continuously selected for the Dow Jones Sustainability World Index (DJSI World)1, one of the major indexes for Socially Responsible Investment (SRI).Every year, the DJSI comprehensively evaluates approximately 2,500 companies around the world with high total market values from the perspectives of economic, environmental and social sustainability, selecting the top 10% for its World Index. In 2012, 340 companies (including 20 Japanese corporations) were selected. As the AGC Group is expected to show sustainable long-term growth, it was continuously selected as an Index member brand. The AGC Group is a member of the Swiss-based WBCSD and participates in activities closely related to the Group.In fiscal 2012, the Group continued its participation in the Urban Infrastructure Initiative (UII), proposing urban planning, sewer improvements, and other aspects of sustain-able city creation in areas such as the state of Gujarat in India. In this project, inherent needs are uncovered through dialogue with cities, and the Group cooperates with other participating corporations that specialize in various fields to find optimal solutions.Although the UII project ends in fiscal 2013, the Group will also participate in Energy Efficiency in Buildings Phase II (EEB 2.0), a project that promotes ways to make buildings more energy-efficient.2 National and regional help lines have been set up in Europe, North America, China, Japan, South Korea, and Taiwan.Please refer to “Corporate Governance” on page 41 and “Internal Audits/Risk Management” on page 44Self-evaluationASelf-evaluationAParticipation in External InitiativeEstablishment of Global Priority Audit ItemsSelf-evaluationAEstablishment of Global Compliance SystemGlobally Establishing Help LinesImplementing Compliance TrainingRevision of the AGC Group Code of ConductContinue to promote complianceParticipating in Environmental Conservation Initiatives as a WBCSD Member CompanyIn FocusAGC Group Selected for the Dow Jones Sustainability World IndexResponsibility to StakeholdersOrganizational GovernanceContinue to ensure effective communications in and outside the GroupImplementing effective audits and promoting the PDCA cyclePDFNumber of help line consultations CSR Information Supplement P. 3PDFCompliance training resultsCSR Information Supplement P. 3www.agc.com/english/csr/integrity/Content published on the Web:WEBRisk Management•Measures for Pandemic Influenza•Formulating a BCP in Accordance with the AGC Group Basic Principle to Cope with Natural DisastersInternal Audits•Implementation of Environmental Safety and Security AuditsDownload Code of ConductThe illustrated explanation of the Code of ConductGlobal Compliance System CSR Information Supplement P. 3PDFCode of Conduct (Items for global requirements) CSR Information Supplement P. 3PDFFair Operating PracticesThe EnvironmentHuman Rights andLabor PracticesOrganizationalGovernanceCommunity Involvementand DevelopmentAGC Report 201324AGC Report 201323The AGC Group is a member of the World Business Council for Sustainable Development (WBCSD) along with about 200 other companies around the world.Additionally, AGC Flat Glass (Thailand) Public participated in the CSR-DIW Initiative promoted by the Thailand Ministry of Industry’s Department of Industrial Works (DIW) to gain CSR certification based on ISO 26000 standards. Asahi Glass is a member of the Council for Better Corporate Citizenship (CBCC) and Group compa-nies are also actively involved in initiatives in their respective countries and regions.In order to maintain the independence of internal auditing divisions and implement effective and efficient auditing, based on the internal audit system (see page 44), the auditing divisions promote the improvement of the organization by monitoring them, while the global leader promptly reports the results to the Group CEO and periodically submits reports to the Board of Corporate Auditors and the Board of Directors.The Group gives global priority to certain audit items. In fiscal 2012, for the second fiscal year in a row, observance of antitrust law and management of confidential information were set as priority items. In addition, on top of each organization’s regular audits, the region of Asia including Japan is implement-ing theme audits, in which a theme is established and the regulation status is audited across the organization. In fiscal 2012, audits of the maintenance and application status of the BCP regarding natural disasters were implemented at 23 locations in four countries.In 2011, the Group began implementing pre-operation audits, in which the development status of new companies’ internal controls is audited before the companies begin operating. In 2012, pre-operation audits were implemented for new companies in China and Brazil.The AGC Group has established three compliance commit-tees in the regions of Europe, North America and Asia including Japan, below the Global Compliance Leader. Each compli-ance committee plans, prepares and implements compliance programs and then monitors its region’s compliance efforts. Further, the committees hold global compliance meetings to draw up policies, measures and other matters for the Group as a whole, the results of which are reported to the Board of Directors. In addition, the AGC Group has established a guideline for reporting compliance issues to promptly report information on serious violations of compliance to top management.The AGC Group has established compliance help lines2 for the Group as a whole and for each individual company to serve as a consultation service on compliance-related issues. To encourage employees to use the service, the Group protects the anonymity of callers and strictly forbids any act of retaliation against anyone who makes a report in good faith. When users offer their real names, efforts are made to facilitate effective two-way communication and provide feedback on the status and results of handling reported problems.In order to promote its Code of Conduct globally, the AGC Group provides various training opportunities to its employ-ees around the world.For example, principally in Japan, Europe and North America, online training is continuously implemented for those with e-mail addresses. In Japan, questions from a previous session for which the rate of correct answers had been low were incorporated again in fiscal 2012, with the goal of strengthening understanding. In Europe and North America, the Group implements online training on a predetermined theme on a regular basis.In Europe, in addition to online training, the AGC Group strives to train the leaders of each group as compliance instructors, who will lead to conduct classroom training for their subordinates. Materials incorpo-rate illustrations and quizzes and are designed to be easy to understand.The AGC Group Code of Conduct was established in June 2008 to ensure that all members of the AGC Group share the same values. The code comprises global requirements of business conduct for all employees in the Group to follow, as well as regional supplements that take into account the differing laws and business customs of respective countries and regions and include items to supplement the global requirements.In fiscal 2012, the Code of Conduct was revised based on changes in social conditions and on revisions to laws in countries where the Group operates, while Group-wide needs were taken into consid-eration from the perspective of compliance.1 DJSI is the SRI index created jointly by Dow Jones in the United States and Sustainability Asset Management (SAM) in Switzerland.As in 2011, the AGC Group was continuously selected for the Dow Jones Sustainability World Index (DJSI World)1, one of the major indexes for Socially Responsible Investment (SRI).Every year, the DJSI comprehensively evaluates approximately 2,500 companies around the world with high total market values from the perspectives of economic, environmental and social sustainability, selecting the top 10% for its World Index. In 2012, 340 companies (including 20 Japanese corporations) were selected. As the AGC Group is expected to show sustainable long-term growth, it was continuously selected as an Index member brand. The AGC Group is a member of the Swiss-based WBCSD and participates in activities closely related to the Group.In fiscal 2012, the Group continued its participation in the Urban Infrastructure Initiative (UII), proposing urban planning, sewer improvements, and other aspects of sustain-able city creation in areas such as the state of Gujarat in India. In this project, inherent needs are uncovered through dialogue with cities, and the Group cooperates with other participating corporations that specialize in various fields to find optimal solutions.Although the UII project ends in fiscal 2013, the Group will also participate in Energy Efficiency in Buildings Phase II (EEB 2.0), a project that promotes ways to make buildings more energy-efficient.2 National and regional help lines have been set up in Europe, North America, China, Japan, South Korea, and Taiwan.Please refer to “Corporate Governance” on page 41 and “Internal Audits/Risk Management” on page 44Self-evaluationASelf-evaluationAParticipation in External InitiativeEstablishment of Global Priority Audit ItemsSelf-evaluationAEstablishment of Global Compliance SystemGlobally Establishing Help LinesImplementing Compliance TrainingRevision of the AGC Group Code of ConductContinue to promote complianceParticipating in Environmental Conservation Initiatives as a WBCSD Member CompanyIn FocusAGC Group Selected for the Dow Jones Sustainability World IndexResponsibility to StakeholdersOrganizational GovernanceContinue to ensure effective communications in and outside the GroupImplementing effective audits and promoting the PDCA cyclePDFNumber of help line consultations CSR Information Supplement P. 3PDFCompliance training resultsCSR Information Supplement P. 3www.agc.com/english/csr/integrity/Content published on the Web:WEBRisk Management•Measures for Pandemic Influenza•Formulating a BCP in Accordance with the AGC Group Basic Principle to Cope with Natural DisastersInternal Audits•Implementation of Environmental Safety and Security AuditsDownload Code of ConductThe illustrated explanation of the Code of ConductGlobal Compliance System CSR Information Supplement P. 3PDFCode of Conduct (Items for global requirements) CSR Information Supplement P. 3PDFFair Operating PracticesThe EnvironmentHuman Rights andLabor PracticesOrganizationalGovernanceCommunity Involvementand DevelopmentAGC Report 201324AGC Report 201323Skill Map RegistrantsApprox.employees7,300The AGC Group is working to create a workplace environment that is safe and rewarding, while achieving continuous growth with mutual respect among employees.To encourage the localization of Group company operations, the Electronics Company is actively promoting the fusion of different cultures and cultivation of global leaders. As part of these efforts, local leaders from overseas locations have been invited to Japan for training and practical exercises since 2011. (Two trainees from Taiwan and one from South Korea in fiscal 2012.)The goal of the training is to impart knowledge of the AGC Group’s overall image and of the decision-making processes at the head office, as well as to give trainees the skills to handle all aspects of division management as local leaders. It is also intended to improve motivation of the trainees by expand-ing their workplace authority following the training.In September 2012, AGC Automotive (Thailand) (AATH) won a Best Practice Workplace on Labor Relations and Labor Welfare Award from the Thai Government. The government annually chooses the award winners by sending officials from the Department of Labor Protection and Welfare to assess and interview both their management and employees. This is AATH's ninth consecutive win since 2004.At AATH, management and employee representatives strive for mutual understanding by staying in close communication. At monthly meetings, management seeks to foster understanding of company policy, while employees have the opportunity to express their opinions and make requests. Employee feedback is then incorporated into improvement plans, with progress tracked monthly. Practices such as these have allowed us to create a positive long-term labor-management relationship. The award was received in recognition of such efforts.In 2010, the AGC Group began applying Skill Map, a person-nel database in which its employees around the world are registered by specialization (26 technical categories, 13 sales and administrative categories). The purpose of Skill Map is to encourage interaction among personnel beyond national, regional and divisional boundaries, and to further strengthen individual abilities and the Group’s competitiveness. By the end of December 2012, approximately 7,300 employees had been registered.I have been in charge of safety manage-ment since transferring to the Japan head office from AGC Flat Glass (Thailand) Public (AFT) in October 2012. I found the Japanese self-driven in working towards common goals and noticed AGC’s promi-nent efforts to promote different work methods and diversity among employees. I hope to return to Thailand with refined expertise in safety, management skills and the values system of diversity to help make AFT be more productive, effective and creative.2 Because no voluntary self-inspection of human rights and labor practices within the Group has been performed.1 Human resources whose achievement at a global level is expected.DoFiscal 2012 major initiative resultsSelf-evaluationFiscal 2013 targetsCheckActPlanFiscal 2012 targetsA123AElectronics CompanyGlobal Leader Training Initiatives in South Korea and TaiwanAGC Automotive (Thailand)Thailand’s Best Practice Workplace on Labor Relations and Labor Welfare Award Won for 9th Consecutive YearKey Performance DataRegistration in Skill Map Personnel Database“Glass Company Japan/Asia Pacific CSR OfficeRattanavichayalert Duangkamon”Learning New Approaches in the Head Office to Improve Safety Management in ThailandResponsibility to StakeholdersHuman Rights and Labor Practices•The efforts of each organization regarding policies given as the Group-wide development of measures to improve employee satisfaction and their status were shared through the company intranet and In-house magazines•The overall number of awards was increased by 6%. Awards given outside Japan increased by 16%, and, in particular, the number of efforts in China and Indonesia, which are positioned as fast-growing markets, increased•Improved the content of next-generation leader training and continued implementation•Began working to hire local university graduates overseas as well as in Japan•Began providing training programs using Web systems, beginning with English and Chinese language training •At the end of December 2012, activities were taking place at 1.6 times more locations globally than in 2011•Confirm the compliance of work condition with national laws and regulations and international labor standards•Comply with any obligation concerning the provision of protection for workers in the country of operation•Comply with the working hours established in laws or regulationsConditions of work and social protectionCreate a work environment where employees can work with satisfac-tion and prideCreate a work environment where employees can work with satisfaction and pride•Implement voluntary self-inspections of human rights and labor practices within the Group•Implement the fourth ES survey•Continue to implement the award system while making improvements as a means to award jointly implemented best practices and efforts to create a work environment that recognizes and appraises achievements•Implement a second voluntary self-inspection of human rights and labor practices within the Group •Promote the Group-wide development of measures to improve employee satisfaction, and create opportunities to regularly review related activities undertaken at each In-house organization•Continue to implement the award system while making improvements as a means to award jointly implemented best practices and efforts to create a work environment that recognizes and appraises achievements. Develop human resources that can drive the Group forward•Improve the content of next-generation leader training•Continue employing global management staff1Enhance employee education and training programs•Develop new training programs that make use of online training•Expand the scope of the AGC Group improvement activities•Provide all workers at all stages of their work experience with access to skills development, training and apprenticeships•Provide all workers at all stages of their work experience with access to opportunities for career advancementHuman development and training in the workplaceEnhance employee education and training programs•Improve the content of next-generation leader training•Expand the scope of registrants of Skill Map (see Key Performance Data below)•Clearly indicate the locations at which AGC Group improvement activities will be developed, then implement efficient development•Create an environment in which efficient learning may take place with no time or location constraintsISO 26000 related actions and expectations (major issues)Criteria for Self-evaluationA: Satisfactory level, in which the intended target has been achievedB: Almost satisfactory level, in which a part of the intended target has not yet been achieved and some issues still remainC: Unsatisfactory level, in which the intended target has not been achievedB2Workplace Environment and Human Resource DevelopmentFair Operating PracticesThe EnvironmentHuman Rights andLabor PracticesOrganizationalGovernanceCommunity Involvementand DevelopmentAGC Report 201326AGC Report 201325Skill Map RegistrantsApprox.employees7,300The AGC Group is working to create a workplace environment that is safe and rewarding, while achieving continuous growth with mutual respect among employees.To encourage the localization of Group company operations, the Electronics Company is actively promoting the fusion of different cultures and cultivation of global leaders. As part of these efforts, local leaders from overseas locations have been invited to Japan for training and practical exercises since 2011. (Two trainees from Taiwan and one from South Korea in fiscal 2012.)The goal of the training is to impart knowledge of the AGC Group’s overall image and of the decision-making processes at the head office, as well as to give trainees the skills to handle all aspects of division management as local leaders. It is also intended to improve motivation of the trainees by expand-ing their workplace authority following the training.In September 2012, AGC Automotive (Thailand) (AATH) won a Best Practice Workplace on Labor Relations and Labor Welfare Award from the Thai Government. The government annually chooses the award winners by sending officials from the Department of Labor Protection and Welfare to assess and interview both their management and employees. This is AATH's ninth consecutive win since 2004.At AATH, management and employee representatives strive for mutual understanding by staying in close communication. At monthly meetings, management seeks to foster understanding of company policy, while employees have the opportunity to express their opinions and make requests. Employee feedback is then incorporated into improvement plans, with progress tracked monthly. Practices such as these have allowed us to create a positive long-term labor-management relationship. The award was received in recognition of such efforts.In 2010, the AGC Group began applying Skill Map, a person-nel database in which its employees around the world are registered by specialization (26 technical categories, 13 sales and administrative categories). The purpose of Skill Map is to encourage interaction among personnel beyond national, regional and divisional boundaries, and to further strengthen individual abilities and the Group’s competitiveness. By the end of December 2012, approximately 7,300 employees had been registered.I have been in charge of safety manage-ment since transferring to the Japan head office from AGC Flat Glass (Thailand) Public (AFT) in October 2012. I found the Japanese self-driven in working towards common goals and noticed AGC’s promi-nent efforts to promote different work methods and diversity among employees. I hope to return to Thailand with refined expertise in safety, management skills and the values system of diversity to help make AFT be more productive, effective and creative.2 Because no voluntary self-inspection of human rights and labor practices within the Group has been performed.1 Human resources whose achievement at a global level is expected.DoFiscal 2012 major initiative resultsSelf-evaluationFiscal 2013 targetsCheckActPlanFiscal 2012 targetsA123AElectronics CompanyGlobal Leader Training Initiatives in South Korea and TaiwanAGC Automotive (Thailand)Thailand’s Best Practice Workplace on Labor Relations and Labor Welfare Award Won for 9th Consecutive YearKey Performance DataRegistration in Skill Map Personnel Database“Glass Company Japan/Asia Pacific CSR OfficeRattanavichayalert Duangkamon”Learning New Approaches in the Head Office to Improve Safety Management in ThailandResponsibility to StakeholdersHuman Rights and Labor Practices•The efforts of each organization regarding policies given as the Group-wide development of measures to improve employee satisfaction and their status were shared through the company intranet and In-house magazines•The overall number of awards was increased by 6%. Awards given outside Japan increased by 16%, and, in particular, the number of efforts in China and Indonesia, which are positioned as fast-growing markets, increased•Improved the content of next-generation leader training and continued implementation•Began working to hire local university graduates overseas as well as in Japan•Began providing training programs using Web systems, beginning with English and Chinese language training •At the end of December 2012, activities were taking place at 1.6 times more locations globally than in 2011•Confirm the compliance of work condition with national laws and regulations and international labor standards•Comply with any obligation concerning the provision of protection for workers in the country of operation•Comply with the working hours established in laws or regulationsConditions of work and social protectionCreate a work environment where employees can work with satisfac-tion and prideCreate a work environment where employees can work with satisfaction and pride•Implement voluntary self-inspections of human rights and labor practices within the Group•Implement the fourth ES survey•Continue to implement the award system while making improvements as a means to award jointly implemented best practices and efforts to create a work environment that recognizes and appraises achievements•Implement a second voluntary self-inspection of human rights and labor practices within the Group •Promote the Group-wide development of measures to improve employee satisfaction, and create opportunities to regularly review related activities undertaken at each In-house organization•Continue to implement the award system while making improvements as a means to award jointly implemented best practices and efforts to create a work environment that recognizes and appraises achievements. Develop human resources that can drive the Group forward•Improve the content of next-generation leader training•Continue employing global management staff1Enhance employee education and training programs•Develop new training programs that make use of online training•Expand the scope of the AGC Group improvement activities•Provide all workers at all stages of their work experience with access to skills development, training and apprenticeships•Provide all workers at all stages of their work experience with access to opportunities for career advancementHuman development and training in the workplaceEnhance employee education and training programs•Improve the content of next-generation leader training•Expand the scope of registrants of Skill Map (see Key Performance Data below)•Clearly indicate the locations at which AGC Group improvement activities will be developed, then implement efficient development•Create an environment in which efficient learning may take place with no time or location constraintsISO 26000 related actions and expectations (major issues)Criteria for Self-evaluationA: Satisfactory level, in which the intended target has been achievedB: Almost satisfactory level, in which a part of the intended target has not yet been achieved and some issues still remainC: Unsatisfactory level, in which the intended target has not been achievedB2Workplace Environment and Human Resource DevelopmentFair Operating PracticesThe EnvironmentHuman Rights andLabor PracticesOrganizationalGovernanceCommunity Involvementand DevelopmentAGC Report 201326AGC Report 201325Fatal accidentsAccidents requiring leave3020100201020112012Asia including Japan150100500Europe20100North America161352424271138132121422010201120122010201120123231In May 2012, the OHS Global Symposium was held at AGC Flat Glass (Suzhou) Co., Ltd in China. Approximately 80 employees from Group companies in various countries partici-pated, sharing policies, issues and best practices regarding safety and health.At the meeting, particular emphasis was placed on lowering the risk of serious accidents, and participants confirmed the policy of promoting preventative measures across the AGC Group, and promotion methods. In addition, they discussed the use of a textbook on human error preven-tion, which categorizes unsafe actions and summarizes preven-tion methods in each category.In 2012, AGC Glass Europe (AGEU) launched a 360º assess-ment to evaluate its safety management. Based on assess-ment results of 15 plants around Europe, AGEU created a 360º Master Plan on Safety to proactively lower the risk of occupational accidents. AGEU also initiated a training program for top managers from Belgium and the Netherlands in December 2012. The program is set to be rolled out in all AGEU countries in 2013.Furthermore, AGEU established its Charter of 10 Safety Principles with the aim to promote uniform safety standards company-wide. It has continued raising awareness of safety through a wide range of measures.Focusing on major industrial accident risks and preventing these accidents is of primary importance in safety management. The AGC Group has launched the Serious Accident Eradication Project and is focusing on major incidents and preventing accidents from both “hard” (machinery) and “soft” (human) angles. I highly approve of this course of action. However, the number of major accidents increased in fiscal 2012, which means, unfortunately, that a problem exists. Correcting it will take continuous, painstaking effort. To this end, please clarify Group policy and steadily introduce counter-measures. I look forward to positive results.2 Due to the occurrence of five fatal accidents within the AGC Group1 The Occupational Health & Safety Management SystemIn fiscal 2012, there were five fatal accidents (two in Asia and three in Europe). To improve the situation, the AGC Group is promoting the Serious Accident Eradication Project (see page 30).123AMembers of the OHS Global SymposiumParticipants in the “Stepping Up for Safety” training for top managersAGC GroupHosting Safety and Health Symposium in ChinaAGC Glass EuropeImproving Safety Practices Based on a 360º Assessment“Doctor of Engineering, Professor Emeritus, Meiji UniversityDr. Masao Mukaidono”Thorough Preventative Measures Are What’s Important, Not Corrective MeasuresResponsibility to StakeholdersHuman Rights and Labor Practices•Obtained third-party certification of the OHSMS at 85 plants globally as of December 31, 2012•Serious Accident Eradication Project launched•In addition to globally sharing a textbook on human error prevention and using it in safety training at manufacturing sites, the mental and physical functions of elderly workers were measured with cooperation from specialized agencies•In Japan, approximately 140 Core Safety Facilitators were trained over four years through safety promotion activities•In Japan, a stratified mental health seminar was introduced, and the Group began a mental health project and implemented status surveys at major locations•Develop, implement and maintain policy on occupational health and safety•Understand and apply principles of health and safety management (elimination, substitution, engineering controls, administrative controls, work procedures and personal protective equipment)Health and safety at workFoster the Group’s safety manage-ment activitiesFoster the Group’s safety management activities•Globally unify the accident information reporting format and begin gathering data•To familiarize locations with the policies of the Serious Accident Eradication Project, develop global guidelines on themes that are high-risk across the Group and verify their comprehensiveness and effectiveness•Continue to enhance education on health and safety, including safety promotion activities•Improve the effectiveness of the OHSMS1•Reduce action-related accidents and accidents involving elderly workers•Continue to enhance education on health and safety, including safety promotion activities•Raise the level of hygiene management•Analyze and control the health and safety risks in organizational activitiesHealth and safety at work•An audit of environment safety and industrial safety and security aspects was implemented via an internal audit by the Audit Division with the intent of making audits more efficientReduce risks by improving health and safety audits•Conduct audits particularly at plants with high health and safety risks while developing a more global auditing system•Conducted Safety Basic Assessor seminars in Thailand, the Philippines, South Korea, Taiwan and China with the goal of promoting machinery safety in AsiaPromote and ensure machinery safetyPromote and ensure machinery safety•Develop a Prior Safety Assessment System at installing manufacturing equipment in Asia•Expand the implementation of education related to machinery safety•Improve the efficiency of the Prior Safety Assessment System of manufacturing equipment •Expand the implementation of education related to machinery safetyC2DoFiscal 2012 major initiative resultsSelf-evaluationFiscal 2013 targetsCheckActPlanFiscal 2012 targetsISO 26000 related actions and expectations (major issues)Criteria for Self-evaluationA: Satisfactory level, in which the intended target has been achievedB: Almost satisfactory level, in which a part of the intended target has not yet been achieved and some issues still remainC: Unsatisfactory level, in which the intended target has not been achievedTrends in Number of Occupational AccidentsNote: The Assessment Criteria for Accident Classification for accidents requiring leave differ between Japan/Asia, Europe and North America, so it is impossible to perform a simple comparison of incidents.Key Performance DataSerious Work-Related Accidents by the NumbersOccupational Health and SafetyFair Operating PracticesThe EnvironmentHuman Rights andLabor PracticesOrganizationalGovernanceCommunity Involvementand DevelopmentAGC Report 201328AGC Report 201327Fatal accidentsAccidents requiring leave3020100201020112012Asia including Japan150100500Europe20100North America161352424271138132121422010201120122010201120123231In May 2012, the OHS Global Symposium was held at AGC Flat Glass (Suzhou) Co., Ltd in China. Approximately 80 employees from Group companies in various countries partici-pated, sharing policies, issues and best practices regarding safety and health.At the meeting, particular emphasis was placed on lowering the risk of serious accidents, and participants confirmed the policy of promoting preventative measures across the AGC Group, and promotion methods. In addition, they discussed the use of a textbook on human error preven-tion, which categorizes unsafe actions and summarizes preven-tion methods in each category.In 2012, AGC Glass Europe (AGEU) launched a 360º assess-ment to evaluate its safety management. Based on assess-ment results of 15 plants around Europe, AGEU created a 360º Master Plan on Safety to proactively lower the risk of occupational accidents. AGEU also initiated a training program for top managers from Belgium and the Netherlands in December 2012. The program is set to be rolled out in all AGEU countries in 2013.Furthermore, AGEU established its Charter of 10 Safety Principles with the aim to promote uniform safety standards company-wide. It has continued raising awareness of safety through a wide range of measures.Focusing on major industrial accident risks and preventing these accidents is of primary importance in safety management. The AGC Group has launched the Serious Accident Eradication Project and is focusing on major incidents and preventing accidents from both “hard” (machinery) and “soft” (human) angles. I highly approve of this course of action. However, the number of major accidents increased in fiscal 2012, which means, unfortunately, that a problem exists. Correcting it will take continuous, painstaking effort. To this end, please clarify Group policy and steadily introduce counter-measures. I look forward to positive results.2 Due to the occurrence of five fatal accidents within the AGC Group1 The Occupational Health & Safety Management SystemIn fiscal 2012, there were five fatal accidents (two in Asia and three in Europe). To improve the situation, the AGC Group is promoting the Serious Accident Eradication Project (see page 30).123AMembers of the OHS Global SymposiumParticipants in the “Stepping Up for Safety” training for top managersAGC GroupHosting Safety and Health Symposium in ChinaAGC Glass EuropeImproving Safety Practices Based on a 360º Assessment“Doctor of Engineering, Professor Emeritus, Meiji UniversityDr. Masao Mukaidono”Thorough Preventative Measures Are What’s Important, Not Corrective MeasuresResponsibility to StakeholdersHuman Rights and Labor Practices•Obtained third-party certification of the OHSMS at 85 plants globally as of December 31, 2012•Serious Accident Eradication Project launched•In addition to globally sharing a textbook on human error prevention and using it in safety training at manufacturing sites, the mental and physical functions of elderly workers were measured with cooperation from specialized agencies•In Japan, approximately 140 Core Safety Facilitators were trained over four years through safety promotion activities•In Japan, a stratified mental health seminar was introduced, and the Group began a mental health project and implemented status surveys at major locations•Develop, implement and maintain policy on occupational health and safety•Understand and apply principles of health and safety management (elimination, substitution, engineering controls, administrative controls, work procedures and personal protective equipment)Health and safety at workFoster the Group’s safety manage-ment activitiesFoster the Group’s safety management activities•Globally unify the accident information reporting format and begin gathering data•To familiarize locations with the policies of the Serious Accident Eradication Project, develop global guidelines on themes that are high-risk across the Group and verify their comprehensiveness and effectiveness•Continue to enhance education on health and safety, including safety promotion activities•Improve the effectiveness of the OHSMS1•Reduce action-related accidents and accidents involving elderly workers•Continue to enhance education on health and safety, including safety promotion activities•Raise the level of hygiene management•Analyze and control the health and safety risks in organizational activitiesHealth and safety at work•An audit of environment safety and industrial safety and security aspects was implemented via an internal audit by the Audit Division with the intent of making audits more efficientReduce risks by improving health and safety audits•Conduct audits particularly at plants with high health and safety risks while developing a more global auditing system•Conducted Safety Basic Assessor seminars in Thailand, the Philippines, South Korea, Taiwan and China with the goal of promoting machinery safety in AsiaPromote and ensure machinery safetyPromote and ensure machinery safety•Develop a Prior Safety Assessment System at installing manufacturing equipment in Asia•Expand the implementation of education related to machinery safety•Improve the efficiency of the Prior Safety Assessment System of manufacturing equipment •Expand the implementation of education related to machinery safetyC2DoFiscal 2012 major initiative resultsSelf-evaluationFiscal 2013 targetsCheckActPlanFiscal 2012 targetsISO 26000 related actions and expectations (major issues)Criteria for Self-evaluationA: Satisfactory level, in which the intended target has been achievedB: Almost satisfactory level, in which a part of the intended target has not yet been achieved and some issues still remainC: Unsatisfactory level, in which the intended target has not been achievedTrends in Number of Occupational AccidentsNote: The Assessment Criteria for Accident Classification for accidents requiring leave differ between Japan/Asia, Europe and North America, so it is impossible to perform a simple comparison of incidents.Key Performance DataSerious Work-Related Accidents by the NumbersOccupational Health and SafetyFair Operating PracticesThe EnvironmentHuman Rights andLabor PracticesOrganizationalGovernanceCommunity Involvementand DevelopmentAGC Report 201328AGC Report 201327As specified in the Respect for People principles of the AGC Group Charter of Corporate Behavior, the AGC Group strives to respect human rights while forbidding discrimination forced labor, child labor, or any violation of human rights. In 2010, to determine the level of compliance with the Charter at each of its Group companies, the AGC Group created a survey form for Group-wide distribution. Using this form, 157 companies conducted voluntary inspections and, based on the results, necessary corrective measures were quickly implemented. In order to ensure continued compliance, inspections will be carried out again in 2013 using a new form updated to reflect societal trends. In the event that problems related to human rights or labor issues occur, they will be addressed jointly by the human resources department and the workplaces involved. Meanwhile, issues reported via the Group’s help lines are handled by those in charge of compliance.Based on its management outlook and business development strategies, in February 2011 the AGC Group began drawing a big picture of its organization and human resources in 2020 with the aim to draw on its diversity —the source of the Group’s competitiveness over the long term. In fiscal 2011, following a tally of the total number of managers and employees working in the Group at present, the number of employees needed in each segment and country to implement its strategies for 2020 was determined. Based on these results, the Group set priority tasks over the medium to long term and is carrying out an array of initiatives designed to complete these tasks.1 Seventeen companies listed on the first section of the Tokyo Stock Exchange were selected after being evaluated on their promotion of women’s participation and their return on equity (ROE).Since 2011, Asahi Glass has continued to achieve its goal of recruiting women as 20% of its graduate recruits for career-track positions, and has implemented various initiatives to engage its female employees. In March 2013, the Tokyo Stock Exchange recognized these efforts by selecting Asahi Glass as a Nadeshiko Brand1 company.The AGC Group is committed to the idea that Our People are Our Strength, as found in its management policy, and is taking steps to develop an education system to help its employees grow. In addition to stratified training in necessary skills and techniques, the Group is establishing a training system geared for issues specific to each In-house Company.In addition, due to recognition of the fact that both individual techniques and production management technology are important in strengthening business, a specialized division was established in fiscal 2012 to promote the improvement of production management technology beyond the boundaries of each of the Group companies. It also started offering training lectures based on the latest knowledge and scientific methods.AGC Group will continue supporting the effective growth of employees by reviewing the education system and its content.The AGC Group is implementing stratified education to raise safety awareness, focusing on Asia including Japan. For teaching materials, the Group has drafted and uses a textbook on human error prevention which categorizes unsafe actions and summarizes prevention methods in each category.In fiscal 2012, these teaching materials were translated into multiple languages and shared with every Group location throughout Asia, Europe and America. In addition, 363 managers in Japan took part in Safety Patrol Training, which aims to develop observation of risk factors onsite at produc-tion facilities.In the future, the AGC Group will continue to work to improve safety awareness with the idea that repeated educa-tion is important for maintaining high level safety awareness.The AGC Group has instituted corrective measures and horizontal deployment for occupational accident prevention and, as a result, their total number has trended downward since 2005. However, the number of fatal accidents or major accidents requiring more than two weeks of leave has increased since the previous fiscal year, and in fiscal 2012, the AGC Group experienced five fatal accidents (two in Asia, three in Europe).Taking this situation very seriously, the AGC Group is launching the cross-divisional Serious Accident Eradication Project. In addition, beginning in January 2013, the entire AGC Group including Europe and North America has shared Accident Reports for major accidents requiring leave of more than two weeks. The subjects of this report include business partners as well.In the future, the AGC Group will work hand-in-hand with its business partners to reduce the risk of occupational accidents and to strengthen safety awareness in every employee.In 2010, the AGC Group began applying the personnel database Skill Map, in which Group employees are registered according to their fields of specialization (26 technical catego-ries, 13 sales and administrative categories). The purpose of Skill Map is to encourage interaction among personnel beyond national, regional and divisional boundaries, and to further strengthen individual abilities and the Group’s competitiveness. By the end of December 2012, approxi-mately 7,300 employees were registered.In addition to utilizing Skill Map to assemble effective teams for cross-divisional projects and to systematically plan the security of human resources, it will be used to improve problem solving at a Group level and to develop expertise in each specialization through in-house conferences and workshops.In April 2012, the AGC Group launched the Serious Accident Eradication Project in order to eliminate serious work-related accidents including fatal accidents and those accidents requir-ing leave of two or more weeks, and environmental and industrial safety and security accidents that could result in injury or death and drastically affect the surrounding area. The project will adopt innovative measures in its approach, and on four occupational accident themes and four environmental and industrial safety and security themes (see page 33), the entire AGC Group is formulating preventative measures with regard to risks which are particularly high across the AGC Group.The AGC Group formed several subcommittees to focus on four work-related accident themes (Forklifts, Palettes, Construction and Work with Equipment, and Caught and Involved), which will closely examine the separate causes and issues and promote separate countermeasures. In the future, the results of their separate activities will be shared within the AGC Group, and serious accidents will be eradicated.The Skill Map SystemGroup ASkill ASkill BSkill DSkill EGroup BGroup CGroup DGroup E7,300 employees registeredExchange of ideasbetween employeesacross divisionsand countriesEmployment and hiringplans to secure futurehuman resources(recruitment and training)Effective assemblyof project teamsOccupational Health and SafetySelf-evaluationBRespect for Human Rights and Sufficient Labor PracticesMaking the Most of DiversityCreate a work environment where employees can work with satisfaction and prideIn FocusWomen’s Advancement Initiatives Result in Nadeshiko Brand SelectionDeveloping the Employee Education and Training SystemImproving the Level of Safety AwarenessSelf-evaluationAEnhance employee educationand training programsReducing the Risk of Occupational AccidentsSelf-evaluationCFoster the Group’s safety management activitiesApplying the Skill Map Personnel DatabaseSerious Accident Eradication Project BeginsSkill CResponsibility to StakeholdersHuman Rights and Labor PracticesPDFEmployee composition, and recruitment and labor data CSR Information Supplement P. 6-7PDFEmployee education and training data CSR Information Supplement P. 7PDFNumber of Occupational Accidents CSR Information Supplement P. 9Workplace Environment and Human Resource Developmentwww.agc.com/english/csr/employee/Content published on the Web:WEBAGC Group Human Resource Management TargetsRespect for Human Rights and Sufficient Labor Practices•Measures to Deal with Human Rights Issues and Harassment•Surveys and Other Initiatives for Improving Employee Satisfaction (ES)•AGC Group Awards SystemMeasures Related to Labor Practices•Work-Life Balance•Labor-Management RelationsMaking the Most of Diversity•Grooming Global Leaders to Manage Diverse Human ResourcesHuman Resources and Recruitment Initiatives•Human Resource Management System•Employing Global Management StaffEmployment and Recruitment of Women, the Elderly and People with Disabilities•Further Employment and Promotion of Female Employees•Employment of Retirees•Employment of People with DisabilitiesEmployee Education•Transfer of Skills from High Performers•Promoting AGC Group Improvement Activities•AGC Monozukuri Training Center•Career Development SupportOccupational Health & Safety•Basic Idea of Occupational Health & Safety•Global Health and Safety Management SystemOccupational Safety Measures•Machinery Safety: Introducing Safe Manufacturing Machines•Implementing Hazard Simulation TrainingOccupational Health•Health Management Policy•Mental Health Care InitiativeFair Operating PracticesThe EnvironmentHuman Rights andLabor PracticesOrganizationalGovernanceCommunity Involvementand DevelopmentAGC Report 201330AGC Report 201329As specified in the Respect for People principles of the AGC Group Charter of Corporate Behavior, the AGC Group strives to respect human rights while forbidding discrimination forced labor, child labor, or any violation of human rights. In 2010, to determine the level of compliance with the Charter at each of its Group companies, the AGC Group created a survey form for Group-wide distribution. Using this form, 157 companies conducted voluntary inspections and, based on the results, necessary corrective measures were quickly implemented. In order to ensure continued compliance, inspections will be carried out again in 2013 using a new form updated to reflect societal trends. In the event that problems related to human rights or labor issues occur, they will be addressed jointly by the human resources department and the workplaces involved. Meanwhile, issues reported via the Group’s help lines are handled by those in charge of compliance.Based on its management outlook and business development strategies, in February 2011 the AGC Group began drawing a big picture of its organization and human resources in 2020 with the aim to draw on its diversity —the source of the Group’s competitiveness over the long term. In fiscal 2011, following a tally of the total number of managers and employees working in the Group at present, the number of employees needed in each segment and country to implement its strategies for 2020 was determined. Based on these results, the Group set priority tasks over the medium to long term and is carrying out an array of initiatives designed to complete these tasks.1 Seventeen companies listed on the first section of the Tokyo Stock Exchange were selected after being evaluated on their promotion of women’s participation and their return on equity (ROE).Since 2011, Asahi Glass has continued to achieve its goal of recruiting women as 20% of its graduate recruits for career-track positions, and has implemented various initiatives to engage its female employees. In March 2013, the Tokyo Stock Exchange recognized these efforts by selecting Asahi Glass as a Nadeshiko Brand1 company.The AGC Group is committed to the idea that Our People are Our Strength, as found in its management policy, and is taking steps to develop an education system to help its employees grow. In addition to stratified training in necessary skills and techniques, the Group is establishing a training system geared for issues specific to each In-house Company.In addition, due to recognition of the fact that both individual techniques and production management technology are important in strengthening business, a specialized division was established in fiscal 2012 to promote the improvement of production management technology beyond the boundaries of each of the Group companies. It also started offering training lectures based on the latest knowledge and scientific methods.AGC Group will continue supporting the effective growth of employees by reviewing the education system and its content.The AGC Group is implementing stratified education to raise safety awareness, focusing on Asia including Japan. For teaching materials, the Group has drafted and uses a textbook on human error prevention which categorizes unsafe actions and summarizes prevention methods in each category.In fiscal 2012, these teaching materials were translated into multiple languages and shared with every Group location throughout Asia, Europe and America. In addition, 363 managers in Japan took part in Safety Patrol Training, which aims to develop observation of risk factors onsite at produc-tion facilities.In the future, the AGC Group will continue to work to improve safety awareness with the idea that repeated educa-tion is important for maintaining high level safety awareness.The AGC Group has instituted corrective measures and horizontal deployment for occupational accident prevention and, as a result, their total number has trended downward since 2005. However, the number of fatal accidents or major accidents requiring more than two weeks of leave has increased since the previous fiscal year, and in fiscal 2012, the AGC Group experienced five fatal accidents (two in Asia, three in Europe).Taking this situation very seriously, the AGC Group is launching the cross-divisional Serious Accident Eradication Project. In addition, beginning in January 2013, the entire AGC Group including Europe and North America has shared Accident Reports for major accidents requiring leave of more than two weeks. The subjects of this report include business partners as well.In the future, the AGC Group will work hand-in-hand with its business partners to reduce the risk of occupational accidents and to strengthen safety awareness in every employee.In 2010, the AGC Group began applying the personnel database Skill Map, in which Group employees are registered according to their fields of specialization (26 technical catego-ries, 13 sales and administrative categories). The purpose of Skill Map is to encourage interaction among personnel beyond national, regional and divisional boundaries, and to further strengthen individual abilities and the Group’s competitiveness. By the end of December 2012, approxi-mately 7,300 employees were registered.In addition to utilizing Skill Map to assemble effective teams for cross-divisional projects and to systematically plan the security of human resources, it will be used to improve problem solving at a Group level and to develop expertise in each specialization through in-house conferences and workshops.In April 2012, the AGC Group launched the Serious Accident Eradication Project in order to eliminate serious work-related accidents including fatal accidents and those accidents requir-ing leave of two or more weeks, and environmental and industrial safety and security accidents that could result in injury or death and drastically affect the surrounding area. The project will adopt innovative measures in its approach, and on four occupational accident themes and four environmental and industrial safety and security themes (see page 33), the entire AGC Group is formulating preventative measures with regard to risks which are particularly high across the AGC Group.The AGC Group formed several subcommittees to focus on four work-related accident themes (Forklifts, Palettes, Construction and Work with Equipment, and Caught and Involved), which will closely examine the separate causes and issues and promote separate countermeasures. In the future, the results of their separate activities will be shared within the AGC Group, and serious accidents will be eradicated.The Skill Map SystemGroup ASkill ASkill BSkill DSkill EGroup BGroup CGroup DGroup E7,300 employees registeredExchange of ideasbetween employeesacross divisionsand countriesEmployment and hiringplans to secure futurehuman resources(recruitment and training)Effective assemblyof project teamsOccupational Health and SafetySelf-evaluationBRespect for Human Rights and Sufficient Labor PracticesMaking the Most of DiversityCreate a work environment where employees can work with satisfaction and prideIn FocusWomen’s Advancement Initiatives Result in Nadeshiko Brand SelectionDeveloping the Employee Education and Training SystemImproving the Level of Safety AwarenessSelf-evaluationAEnhance employee educationand training programsReducing the Risk of Occupational AccidentsSelf-evaluationCFoster the Group’s safety management activitiesApplying the Skill Map Personnel DatabaseSerious Accident Eradication Project BeginsSkill CResponsibility to StakeholdersHuman Rights and Labor PracticesPDFEmployee composition, and recruitment and labor data CSR Information Supplement P. 6-7PDFEmployee education and training data CSR Information Supplement P. 7PDFNumber of Occupational Accidents CSR Information Supplement P. 9Workplace Environment and Human Resource Developmentwww.agc.com/english/csr/employee/Content published on the Web:WEBAGC Group Human Resource Management TargetsRespect for Human Rights and Sufficient Labor Practices•Measures to Deal with Human Rights Issues and Harassment•Surveys and Other Initiatives for Improving Employee Satisfaction (ES)•AGC Group Awards SystemMeasures Related to Labor Practices•Work-Life Balance•Labor-Management RelationsMaking the Most of Diversity•Grooming Global Leaders to Manage Diverse Human ResourcesHuman Resources and Recruitment Initiatives•Human Resource Management System•Employing Global Management StaffEmployment and Recruitment of Women, the Elderly and People with Disabilities•Further Employment and Promotion of Female Employees•Employment of Retirees•Employment of People with DisabilitiesEmployee Education•Transfer of Skills from High Performers•Promoting AGC Group Improvement Activities•AGC Monozukuri Training Center•Career Development SupportOccupational Health & Safety•Basic Idea of Occupational Health & Safety•Global Health and Safety Management SystemOccupational Safety Measures•Machinery Safety: Introducing Safe Manufacturing Machines•Implementing Hazard Simulation TrainingOccupational Health•Health Management Policy•Mental Health Care InitiativeFair Operating PracticesThe EnvironmentHuman Rights andLabor PracticesOrganizationalGovernanceCommunity Involvementand DevelopmentAGC Report 201330AGC Report 201329010050150(PJ)(FY)20112010145147200912520081452012150Glass cullets (pulverized glass) can be reused as raw material to conserve resources. Since cullets require less energy to melt than silica sand (the raw material for glass), this conserves energy as well. The AGC Group was the earliest member of the flat glass industry to begin foreign glass collection in Japan, and the Southeast Asian Group companies also reuse cullets. In addition, the Group is beginning foreign glass collection in Singapore. Group companies in Europe reuse approximately one million tons of cullets annually, the equivalent of saving 1,150,000 tons of raw materi-als and reducing CO2 emissions by 300,000 tons.Amidst growing interest in environmentally friendly products, buildings are now being certified as “green buildings” from the perspective of reducing waste and efficiently utilizing energy, water, and other resources. Buildings acquiring such certification are expected to increase in the future.In 2012, AGC Glass Europe had its products assessed in cooperation with various certification organizations. In one case, its Stopray™ Vision 50T glass was certified by the Singapore Green Building Council as “Excellent.” AGC Glass Europe’s new headquarters building, into which it will move in 2013, is also expected to acquire BREEAM (Building Research Establishment Environmental Assessment Method) certification.”When disclosing environmental performance data, it is important to clearly communicate the company’s intent. The reporting medium has changed from an environmental report to an integrated report, with detailed informa-tion incorporated into the website. With insufficient exposition, disclosed data tends to stand on its own. Information may be communicated more accurately by adding considerations regarding environmental performance and, depending on the item, excluding short-term variables such as economic factors. As a result, not only will the company receive fair evaluations from those outside the company, but the information can be reflected in company initiatives during the following fiscal year.The AGC Group has positioned environmental protection as a top management priority, and is working to reduce the environmental impact of its operations. In addition, to con-tribute to the reduction of the environmental impact of society as a whole, it plans for 30% of its sales to be environment-related by the year 2020.Due to increased energy use in the Asia region, the AGC Group’s total energy consumption rose by 2% as compared to fiscal 2011. In the future, energy-saving activities regarding production processes will be implemented proactively, as set forth in “Technology Solutions for Environment and Energy” strategy in the mid-term management policy .1 Since the AGC Environmental Indicator for greenhouse gases is showing a tendency to worsen.2 Zero-landfill is defined as recycling more than 99% of waste.3 Since the recycling rate for the entire Group is 96.2%, and Zero-landfill has not yet been achieved globally.4 The amount of waste generated for the amount of resources investedFiscal 2013 targetsActISO 26000 related actions and expectations (major issues)Self-evaluationCheckDoFiscal 2012 major initiative resultsPlanFiscal 2012 targetsA glass cullet sorting facility at the plant in IndonesiaChanges in Total Energy Consumption (AGC Group)AGlass CompanyPromoting Glass Cullet Collection and Recycling OverseasAGC Glass EuropeAGC Glass Europe Acquires High Environmental Certification Ratings for Products and Buildings“Doctor of Engineering, Professor Emeritus, Yokohama National UniversityDr. Kohei Urano”The Importance of Preparing Disclosures from a Reader’s Perspective123Key Performance DataTotal Energy ConsumptionResponsibility to StakeholdersThe EnvironmentPromoting risk reduction and preventive measures•Participation in the integrated Environmental Management System (integrated EMS) was continuously expanded, with 128 locations (of 242 total manufacturing plants) participating worldwide as of the end of December 2012Promoting risk reduction and preventive measures•Expand the number of locations participating in the integrated EMS•Develop preventative measures for serious environmental and industrial safety and security accidents through the Serious Accident Eradication Project•Identify the impact of its decisions and activities on the environment•Identify the sources of pollution and waste related to the activities•Measure, record and report on its significant sources of pollution and reduction of pollution, water consumption, waste generation and energy consumption•Prepare an environmental accident prevention program and an emergency plan involving workers, authorities, local communities and other relevant stakeholdersPrevention of pollution•The AGC Environmental Indicator level for greenhouse gases was 1.6•Through the scope of Energy Conservation Assessment, the amount of utility-related energy consumption at the major plants in Japan was reduced by 8.5% as compared to 2011 levels•The environment-related sales ratio was 17%, a one-point increase over the 2011 ratioContributions through business initiatives regarding environ-mental and energy issues•Achieve an AGC Environmental Indicator level of 1.3 or less for greenhouse gases•Facilitate energy conservation in manufacturing processes, etc.•Promote the development of environmen-tal productsContributions through business initiatives regarding environmental and energy issues•Promote activities to lower the level of the AGC Environmental Indicator for greenhouse gases to 1.3 or less •Reduce the amount of energy consumption per unit area in major offices to 25% of 2011 values by 2015•Achieve an environment-related sales ratio of 19% by 2015, and of 30% by 2020•Identify the sources of direct and indirect GHG emissions and define the scope of its responsibility•Measure, record and report on its significant GHG emissions, preferably using methods defined in internationally agreed standards•Implement measures to reduce the direct and indirect GHG emissions within its sphere of influence•Realize energy savings by purchasing of energy efficient goods and development of energy efficient productsClimate change mitigation and adaptation•Forty percent of manufacturing plants achieved Zero-landfill (waste)2, an 11-point increase as compared to 2011Promote Zero-landfill (waste) across the Group•Implement measures aimed at preventing pollution and waste and properly manage unavoidable pollution and wastePrevention of pollution•By 2020, reduce the total amount of waste generated by basic unit4, and promote waste reduction initiatives in order to achieve Zero-landfill across the entire GroupPromote Zero-landfill (waste) across the Group•Identify the sources of energy, water and other resources used•Measure, record and report on its significant uses of energy, water and other resources•Implement measures to reduce its use of energy, water and other resourcesSustainable resource usePromotion of sustainable resource useNEWB3B1Criteria for Self-evaluationA: Satisfactory level, in which the intended target has been achievedB: Almost satisfactory level, in which a part of the intended target has not yet been achieved and some issues still remainC: Unsatisfactory level, in which the intended target has not been achieved0ZEROFair Operating PracticesThe EnvironmentHuman Rights andLabor PracticesOrganizationalGovernanceCommunity Involvementand DevelopmentAGC Report 201332AGC Report 201331010050150(PJ)(FY)20112010145147200912520081452012150Glass cullets (pulverized glass) can be reused as raw material to conserve resources. Since cullets require less energy to melt than silica sand (the raw material for glass), this conserves energy as well. The AGC Group was the earliest member of the flat glass industry to begin foreign glass collection in Japan, and the Southeast Asian Group companies also reuse cullets. In addition, the Group is beginning foreign glass collection in Singapore. Group companies in Europe reuse approximately one million tons of cullets annually, the equivalent of saving 1,150,000 tons of raw materi-als and reducing CO2 emissions by 300,000 tons.Amidst growing interest in environmentally friendly products, buildings are now being certified as “green buildings” from the perspective of reducing waste and efficiently utilizing energy, water, and other resources. Buildings acquiring such certification are expected to increase in the future.In 2012, AGC Glass Europe had its products assessed in cooperation with various certification organizations. In one case, its Stopray™ Vision 50T glass was certified by the Singapore Green Building Council as “Excellent.” AGC Glass Europe’s new headquarters building, into which it will move in 2013, is also expected to acquire BREEAM (Building Research Establishment Environmental Assessment Method) certification.”When disclosing environmental performance data, it is important to clearly communicate the company’s intent. The reporting medium has changed from an environmental report to an integrated report, with detailed informa-tion incorporated into the website. With insufficient exposition, disclosed data tends to stand on its own. Information may be communicated more accurately by adding considerations regarding environmental performance and, depending on the item, excluding short-term variables such as economic factors. As a result, not only will the company receive fair evaluations from those outside the company, but the information can be reflected in company initiatives during the following fiscal year.The AGC Group has positioned environmental protection as a top management priority, and is working to reduce the environmental impact of its operations. In addition, to con-tribute to the reduction of the environmental impact of society as a whole, it plans for 30% of its sales to be environment-related by the year 2020.Due to increased energy use in the Asia region, the AGC Group’s total energy consumption rose by 2% as compared to fiscal 2011. In the future, energy-saving activities regarding production processes will be implemented proactively, as set forth in “Technology Solutions for Environment and Energy” strategy in the mid-term management policy .1 Since the AGC Environmental Indicator for greenhouse gases is showing a tendency to worsen.2 Zero-landfill is defined as recycling more than 99% of waste.3 Since the recycling rate for the entire Group is 96.2%, and Zero-landfill has not yet been achieved globally.4 The amount of waste generated for the amount of resources investedFiscal 2013 targetsActISO 26000 related actions and expectations (major issues)Self-evaluationCheckDoFiscal 2012 major initiative resultsPlanFiscal 2012 targetsA glass cullet sorting facility at the plant in IndonesiaChanges in Total Energy Consumption (AGC Group)AGlass CompanyPromoting Glass Cullet Collection and Recycling OverseasAGC Glass EuropeAGC Glass Europe Acquires High Environmental Certification Ratings for Products and Buildings“Doctor of Engineering, Professor Emeritus, Yokohama National UniversityDr. Kohei Urano”The Importance of Preparing Disclosures from a Reader’s Perspective123Key Performance DataTotal Energy ConsumptionResponsibility to StakeholdersThe EnvironmentPromoting risk reduction and preventive measures•Participation in the integrated Environmental Management System (integrated EMS) was continuously expanded, with 128 locations (of 242 total manufacturing plants) participating worldwide as of the end of December 2012Promoting risk reduction and preventive measures•Expand the number of locations participating in the integrated EMS•Develop preventative measures for serious environmental and industrial safety and security accidents through the Serious Accident Eradication Project•Identify the impact of its decisions and activities on the environment•Identify the sources of pollution and waste related to the activities•Measure, record and report on its significant sources of pollution and reduction of pollution, water consumption, waste generation and energy consumption•Prepare an environmental accident prevention program and an emergency plan involving workers, authorities, local communities and other relevant stakeholdersPrevention of pollution•The AGC Environmental Indicator level for greenhouse gases was 1.6•Through the scope of Energy Conservation Assessment, the amount of utility-related energy consumption at the major plants in Japan was reduced by 8.5% as compared to 2011 levels•The environment-related sales ratio was 17%, a one-point increase over the 2011 ratioContributions through business initiatives regarding environ-mental and energy issues•Achieve an AGC Environmental Indicator level of 1.3 or less for greenhouse gases•Facilitate energy conservation in manufacturing processes, etc.•Promote the development of environmen-tal productsContributions through business initiatives regarding environmental and energy issues•Promote activities to lower the level of the AGC Environmental Indicator for greenhouse gases to 1.3 or less •Reduce the amount of energy consumption per unit area in major offices to 25% of 2011 values by 2015•Achieve an environment-related sales ratio of 19% by 2015, and of 30% by 2020•Identify the sources of direct and indirect GHG emissions and define the scope of its responsibility•Measure, record and report on its significant GHG emissions, preferably using methods defined in internationally agreed standards•Implement measures to reduce the direct and indirect GHG emissions within its sphere of influence•Realize energy savings by purchasing of energy efficient goods and development of energy efficient productsClimate change mitigation and adaptation•Forty percent of manufacturing plants achieved Zero-landfill (waste)2, an 11-point increase as compared to 2011Promote Zero-landfill (waste) across the Group•Implement measures aimed at preventing pollution and waste and properly manage unavoidable pollution and wastePrevention of pollution•By 2020, reduce the total amount of waste generated by basic unit4, and promote waste reduction initiatives in order to achieve Zero-landfill across the entire GroupPromote Zero-landfill (waste) across the Group•Identify the sources of energy, water and other resources used•Measure, record and report on its significant uses of energy, water and other resources•Implement measures to reduce its use of energy, water and other resourcesSustainable resource usePromotion of sustainable resource useNEWB3B1Criteria for Self-evaluationA: Satisfactory level, in which the intended target has been achievedB: Almost satisfactory level, in which a part of the intended target has not yet been achieved and some issues still remainC: Unsatisfactory level, in which the intended target has not been achieved0ZEROFair Operating PracticesThe EnvironmentHuman Rights andLabor PracticesOrganizationalGovernanceCommunity Involvementand DevelopmentAGC Report 201332AGC Report 201331Global (Japan’s) GDPSales ofAGC Group (Asahi Glass)AGC Environmental IndicatorSOC emissionsin the world (Japan)SOC1 emissionsby AGC Group (Asahi Glass)EconomiccontributionEnvironmentalimpact ratioTotal Amount of WastewaterCompared to 1998% reduction on a comparable basis70Approx.Compared to 1998Sites achieving Zero-landfill (waste) (manufacturing plants)%AGC Glass EuropeAsahi Glass242 manufacturing plantsISO 14001 certifiedplants183Of these, ISO 14001 certification of plants participating in integrated EMSplants128201120124029%% reduction80Approx.EMS0ZEROEMSEMSEMSThe AGC Group is promoting Zero-landfill (waste)4 globally, with a goal to achieve Group-wide Zero-landfill (waste) status by 2020. The Group carefully controls of the amount of waste generated at sites and implements sorted collection. It is also making steady progress in recycling waste via the legal systems and recycling infrastructures of the countries and regions in which it operates. In fiscal 2012, the Group’s overall recycling rate was 96.2%, and 40% of manufacturing plants had achieved Zero-landfill (waste) status.2An abbreviation for Zero Energy Building. A building whose improved energy-saving performance or use of renewable energy compensates for its primary energy use, with the result that its annual primary energy consumption is zero or close to zero. 3The amount of CO2 emissions stemming from employee business trips and commutes, and goods acquisition and logistics in the supply chain4Zero-landfill (waste) is defined as recycling more than 99% of waste.The AGC Group has been building on and maintaining its integrated environmental management system (Integrated EMS) since 2003. The objectives of the system are as follows:1. The Group aims to carry out environmental activities on an operational-wide basis rather than independently at each plant by integrating EMS in each of In-house Companies.2. The Group aims to determine the effects of its entire operations on the environment in advance, extending from product design and assembly line organization through to manufacturing and transportation, to enable it to reduce the environmental impact of its products over the products’ entire lifecycle. Accordingly, it includes the head office, sales depart-ments and R&D divisions in addition to manufacturing plants in the Integrated EMS framework.Under this system, each organization works to attain the goals and plans set in the Integrated EMS, and progress is evaluated by management through the integrated EMS review. Furthermore, each plant is encouraged to have external inspec-tions based on international standards by the same certification organization, as a way to determine the level of environmental management activities in each country and region where the Group operates. Management makes use of the results of these evaluations and inspections when drafting policies and plans for the following fiscal year to ensure that environmental management activities continuously improve.The AGC Group formulated the AGC Environmental Indicator in 2006 to independently assess the environmental impact of its manufacturing activities (details shown below). By using this indicator, the Group can calculate how much the environment is affected in relation to improvements in its economic perfor-mance while making further improvements. Recognizing that it belongs to an energy-intensive industry, the AGC Group is promoting energy saving in areas such as within its production processes. In this regard, it has set a target value of 1.3 as measured by the AGC Environmental Indicator for greenhouse gas emissions. To meet this target, the Group is making use of fuel conversion and total oxygen combustion to improve production processes, installed cogeneration equipment and implemented energy conserva-tion assessment. In fiscal 2012, due in great part to economic contribution, the denominator of the calculation method, the AGC Environmental Indicator was 1.6.Energy conservation is also being promoted in the non-manufacturing divisions. For example, ZEB2 conversion is moving forward on the head office building into which AGC Glass Europe (AGEU) will move in 2013, and in the field of logistics, every region is working on a modal shift, switching to transportation by rail or ship.In 2012, the AGC Group assessed its CO2 emissions, including Scope 33 emissions. It was calculated that emissions generated through production (Scope 1 and 2) accounted for roughly 60% of the Group’s total emissions. Going forward, Using risk assessment methods, the AGC Group quantitatively evaluates risk factors hidden in business activities, reducing risk by incorporating countermeasures for high-risk items. In 2012, the Group began to use the Serious Accident Eradication Project (see page 30) to expose issues regarding molten glass leaks and explosions, which are a particularly large risk across the Group, and to propose countermeasures for future use. Looking forward, these efforts will be coordinated with business continu-ity plans (BCPs) and implemented across the entire group.priority areas will be selected based on this assessment, and energy conservation measures will continue to be undertaken.The AGC Group manufactures and sells energy-saving architectural glass and other products that contribute to the reduction of greenhouse gas emissions over their entire lifecycle. To promote the spread of these products and to foster an environment in which all of society works together to conserve energy, the Group conducts educational activities through the WBCSD (World Business Council for Sustainable Development)(see page 23). In addition, the Group itself is leading the way by making its own offices energy-efficient, having established a goal of reducing the amount of energy used per unit of area in its major offices to 25% of fiscal 2011 levels by fiscal 2015.In order to use its water resources more effectively, the AGC Group is promoting the recycling of cleaning and coolant water used in its manufacturing processes. For example, the latest technology for reducing the amount of water used is being introduced at the AGC Glass Brazil plant currently under construction. The total amount of wastewater in fiscal 2012 was reduced by approximately 80% at Asahi Glass, and, on a comparable basis, by approximately 70% (compared to fiscal 1998) at AGC Glass Europe (AGEU).Also, by setting environmental indicators, such as COD5, that are specific to the characteristics of each site, the Group is working toward the prevention of water pollution.5Chemical Oxygen Demand is the amount of oxygen consumed to oxidize organic matter in water.AGC Environmental Indicator Calculation MethodSelf-evaluationAIntegrated Environmental Management System OperationThe AGC Environmental Indicator to Determine Environmental ImpactEnergy Conservation and Reduction in Greenhouse Gas EmissionsPromoting risk reduction and preventive measuresSelf-evaluationBContributions through business initiatives regarding environmental and energy issuesPromotion of Risk Reduction Activities at Each PlantIn FocusOffice Energy Conservation Goal Established GloballySelf-evaluationBWaste ReductionPromote Zero-landfill (waste) across the GroupEffective Use of Water Resources and the Prevention of Water PollutionPromotion of sustainable resource useNEWResponsibility to StakeholdersThe EnvironmentPDFPromotion structure of Integrated EMS and ISO 14001 certification status CSR Information Supplement P. 10PDFAGC Environmental Indicator Data, Material Balance CSR Information Supplement P. 11PDFGreenhouse Gas Emissions, Energy Consumption in Logistics per Unit CSR Information Supplement P. 12PDFWaste Sent to Landfill and the Recycling Rates CSR Information Supplement P. 14PDFTotal wastewater and COD emissions CSR Information Supplement P. 13www.agc.com/english/csr/env/Content published on the Web:WEBEnvironmental Management•The AGC Group Basic Environmental PolicyEnergy Conservation and Reduction in Greenhouse Gas Emissions•CO2 Emission Reduction Initiatives in Individual Countries and Regions•Reducing Greenhouse Gases Besides CO2•Manufacturing Operations Cases•Non-manufacturing Operations CasesLife Cycle CO2 EmissionsChemical Substances Management•Compliance with PRTR Act (AGC Group in Japan)•Considerations for Safety during Chemical Transport•Proper Management and Treatment of Asbestos•Proper Management and Treatment of PCBsPollution Prevention•Air Pollution Prevention•Prevention of Soil and Groundwater ContaminationBiodiversity ConservationEnvironment, Safety & Security EducationEnvironmental Accounting Environmental ProductsIndustrial Safety & Security1Substance of ConcernFair Operating PracticesThe EnvironmentHuman Rights andLabor PracticesOrganizationalGovernanceCommunity Involvementand DevelopmentAGC Report 201334AGC Report 201333Global (Japan’s) GDPSales ofAGC Group (Asahi Glass)AGC Environmental IndicatorSOC emissionsin the world (Japan)SOC1 emissionsby AGC Group (Asahi Glass)EconomiccontributionEnvironmentalimpact ratioTotal Amount of WastewaterCompared to 1998% reduction on a comparable basis70Approx.Compared to 1998Sites achieving Zero-landfill (waste) (manufacturing plants)%AGC Glass EuropeAsahi Glass242 manufacturing plantsISO 14001 certifiedplants183Of these, ISO 14001 certification of plants participating in integrated EMSplants128201120124029%% reduction80Approx.EMS0ZEROEMSEMSEMSThe AGC Group is promoting Zero-landfill (waste)4 globally, with a goal to achieve Group-wide Zero-landfill (waste) status by 2020. The Group carefully controls of the amount of waste generated at sites and implements sorted collection. It is also making steady progress in recycling waste via the legal systems and recycling infrastructures of the countries and regions in which it operates. In fiscal 2012, the Group’s overall recycling rate was 96.2%, and 40% of manufacturing plants had achieved Zero-landfill (waste) status.2An abbreviation for Zero Energy Building. A building whose improved energy-saving performance or use of renewable energy compensates for its primary energy use, with the result that its annual primary energy consumption is zero or close to zero. 3The amount of CO2 emissions stemming from employee business trips and commutes, and goods acquisition and logistics in the supply chain4Zero-landfill (waste) is defined as recycling more than 99% of waste.The AGC Group has been building on and maintaining its integrated environmental management system (Integrated EMS) since 2003. The objectives of the system are as follows:1. The Group aims to carry out environmental activities on an operational-wide basis rather than independently at each plant by integrating EMS in each of In-house Companies.2. The Group aims to determine the effects of its entire operations on the environment in advance, extending from product design and assembly line organization through to manufacturing and transportation, to enable it to reduce the environmental impact of its products over the products’ entire lifecycle. Accordingly, it includes the head office, sales depart-ments and R&D divisions in addition to manufacturing plants in the Integrated EMS framework.Under this system, each organization works to attain the goals and plans set in the Integrated EMS, and progress is evaluated by management through the integrated EMS review. Furthermore, each plant is encouraged to have external inspec-tions based on international standards by the same certification organization, as a way to determine the level of environmental management activities in each country and region where the Group operates. Management makes use of the results of these evaluations and inspections when drafting policies and plans for the following fiscal year to ensure that environmental management activities continuously improve.The AGC Group formulated the AGC Environmental Indicator in 2006 to independently assess the environmental impact of its manufacturing activities (details shown below). By using this indicator, the Group can calculate how much the environment is affected in relation to improvements in its economic perfor-mance while making further improvements. Recognizing that it belongs to an energy-intensive industry, the AGC Group is promoting energy saving in areas such as within its production processes. In this regard, it has set a target value of 1.3 as measured by the AGC Environmental Indicator for greenhouse gas emissions. To meet this target, the Group is making use of fuel conversion and total oxygen combustion to improve production processes, installed cogeneration equipment and implemented energy conserva-tion assessment. In fiscal 2012, due in great part to economic contribution, the denominator of the calculation method, the AGC Environmental Indicator was 1.6.Energy conservation is also being promoted in the non-manufacturing divisions. For example, ZEB2 conversion is moving forward on the head office building into which AGC Glass Europe (AGEU) will move in 2013, and in the field of logistics, every region is working on a modal shift, switching to transportation by rail or ship.In 2012, the AGC Group assessed its CO2 emissions, including Scope 33 emissions. It was calculated that emissions generated through production (Scope 1 and 2) accounted for roughly 60% of the Group’s total emissions. Going forward, Using risk assessment methods, the AGC Group quantitatively evaluates risk factors hidden in business activities, reducing risk by incorporating countermeasures for high-risk items. In 2012, the Group began to use the Serious Accident Eradication Project (see page 30) to expose issues regarding molten glass leaks and explosions, which are a particularly large risk across the Group, and to propose countermeasures for future use. Looking forward, these efforts will be coordinated with business continu-ity plans (BCPs) and implemented across the entire group.priority areas will be selected based on this assessment, and energy conservation measures will continue to be undertaken.The AGC Group manufactures and sells energy-saving architectural glass and other products that contribute to the reduction of greenhouse gas emissions over their entire lifecycle. To promote the spread of these products and to foster an environment in which all of society works together to conserve energy, the Group conducts educational activities through the WBCSD (World Business Council for Sustainable Development)(see page 23). In addition, the Group itself is leading the way by making its own offices energy-efficient, having established a goal of reducing the amount of energy used per unit of area in its major offices to 25% of fiscal 2011 levels by fiscal 2015.In order to use its water resources more effectively, the AGC Group is promoting the recycling of cleaning and coolant water used in its manufacturing processes. For example, the latest technology for reducing the amount of water used is being introduced at the AGC Glass Brazil plant currently under construction. The total amount of wastewater in fiscal 2012 was reduced by approximately 80% at Asahi Glass, and, on a comparable basis, by approximately 70% (compared to fiscal 1998) at AGC Glass Europe (AGEU).Also, by setting environmental indicators, such as COD5, that are specific to the characteristics of each site, the Group is working toward the prevention of water pollution.5Chemical Oxygen Demand is the amount of oxygen consumed to oxidize organic matter in water.AGC Environmental Indicator Calculation MethodSelf-evaluationAIntegrated Environmental Management System OperationThe AGC Environmental Indicator to Determine Environmental ImpactEnergy Conservation and Reduction in Greenhouse Gas EmissionsPromoting risk reduction and preventive measuresSelf-evaluationBContributions through business initiatives regarding environmental and energy issuesPromotion of Risk Reduction Activities at Each PlantIn FocusOffice Energy Conservation Goal Established GloballySelf-evaluationBWaste ReductionPromote Zero-landfill (waste) across the GroupEffective Use of Water Resources and the Prevention of Water PollutionPromotion of sustainable resource useNEWResponsibility to StakeholdersThe EnvironmentPDFPromotion structure of Integrated EMS and ISO 14001 certification status CSR Information Supplement P. 10PDFAGC Environmental Indicator Data, Material Balance CSR Information Supplement P. 11PDFGreenhouse Gas Emissions, Energy Consumption in Logistics per Unit CSR Information Supplement P. 12PDFWaste Sent to Landfill and the Recycling Rates CSR Information Supplement P. 14PDFTotal wastewater and COD emissions CSR Information Supplement P. 13www.agc.com/english/csr/env/Content published on the Web:WEBEnvironmental Management•The AGC Group Basic Environmental PolicyEnergy Conservation and Reduction in Greenhouse Gas Emissions•CO2 Emission Reduction Initiatives in Individual Countries and Regions•Reducing Greenhouse Gases Besides CO2•Manufacturing Operations Cases•Non-manufacturing Operations CasesLife Cycle CO2 EmissionsChemical Substances Management•Compliance with PRTR Act (AGC Group in Japan)•Considerations for Safety during Chemical Transport•Proper Management and Treatment of Asbestos•Proper Management and Treatment of PCBsPollution Prevention•Air Pollution Prevention•Prevention of Soil and Groundwater ContaminationBiodiversity ConservationEnvironment, Safety & Security EducationEnvironmental Accounting Environmental ProductsIndustrial Safety & Security1Substance of ConcernFair Operating PracticesThe EnvironmentHuman Rights andLabor PracticesOrganizationalGovernanceCommunity Involvementand DevelopmentAGC Report 201334AGC Report 201333Online Training (e-learning)5,900Approx.Approx.participantsparticipants2,900Group companies and divisions46In-person TrainingOnsite AuditsAGC Glass Europe (AGEU) is striving to maintain healthy business together with its suppliers by taking advantage of its InnoWiz program. The program provides a system for evaluating innovative ideas submitted by employees and implementing those that are feasible. Launched in 2008, the program allows anyone to suggest ideas and publish them on its platform.Taking advantage of this system, in June 2012 AGEU strengthened its partnerships with business partners. AGEU has collected their cost-saving ideas together, then used the InnoWiz system for evaluating and processing the ideas. In addition, AGEU’s technical staff work to make sure the ideas could work. With about 75% of the business partners agreeing to participate, AGEU and these partners have created a win-win situation by confronting the harsh business climate together as a team.Suppliers who join the program receive the added benefit of becoming ‘preferred’ suppliers, allowing them to take part in a privileged 2-year supply program.The AGC Group has been conducting antitrust law compliance training through various methods, such as online training (e-learning). In fiscal 2012, in-person training using real case examples of violations was conducted so that the participants could learn more effectively, with a focus on Japan and countries in Asia and Europe.In the US, over 83% of the top U.S. compa-nies list supply chain issues as the number one challenge for 2013. As the General Manager of AGC Electronics America (AEUS), I’m responsible for our active supplier manage-ment process that educates, supports, and audits the critical suppliers in our supply chain. Along with the usual challenges of logistics and risk mitigation, there is increased pressure on U.S. companies to ensure each vendor’s quality management system includes corporate social responsibility and business conduct codes.There is also increased pressure with our multinational customers who are committed to participating in the Electronics Industry Citizenship Coalition (EICC), a coalition of the world’s leading electronics companies working to improve social, ethical, and environmental responsibility in the global supply chain. This initiative has many similarities with AGC’s CSR program. AEUS has an infrastructure that has been developed over the years and has undergone repeated customer and supplier audits. AEUS is committed to a continuous alignment of our supply chain goals based on our responsibility under the AGC Group CSR and our customers’ requirements.In addition to conducting business fairly, the AGC Group bases its operations on the principles of fair competition and on related applicable laws and ordinances. The Group is also working to promote social responsibility across the supply chain.The AGC Group has not only set and put into effect global guidelines for compliance with antitrust laws but has also been conducting antitrust law compliance training with employees through efforts such as online training (e-learning) and in-person training. In addition, compliance with the guidelines is audited by each Group company and division.AGC Glass EuropePromoting Innovations with Business Partners Using the InnoWiz ProgramAGC GroupImplementing Effective Training on Antitrust Laws“General Manager, AGC Electronics AmericaJeff Schmitt”Committed to a Continuous Alignment of Supply Chain Goals Based on CSR and Customer Needs1•Identify the risks of corruption and implement and maintain policies and practices that counter corruptionAnti-corruption2Anti-corruptionIncluded in "Organizational Governance: Continue to promote compliance" (see page 21-22)Antitrust law trainingKey Performance DataFiscal 2012 Main Measures to Prevent Violations of Antitrust LawsResponsibility to StakeholdersFair Operating Practices•About 5,900 employees participated in online training (e-learning) on antitrust laws, about 2,900 employees participated in in-person training•Conducted audits for compliance with the global guidelines in relation to compliance with the antitrust law at 46 Group companies and divisions•Conduct activities in a manner consistent with competition laws and regulations, and cooperate with the appropriate authorities•Establish procedures to prevent engaging in anti-competitive behavior•Train employees on the importance of competition legislation and fair competitionFair competitionTo further strengthen training and audit for compliance with antitrust lawsTo further strengthen training and audit for compliance with antitrust laws•Integrate ethical, social, environmental and gender equality criteria and health and safety in its purchasing, distribution and contracting policiesPromoting social responsibility in the value chain•In addition to expanding familiarity with the AGC Group Purchasing Policy, develop policies to grasp the response status of major business partnersPromote social responsibility across the supply chainNEWADoFiscal 2012 major initiative resultsSelf-evaluationFiscal 2013 targetsCheckActPlanFiscal 2012 targetsISO 26000 related actions and expectations (major issues)Criteria for Self-evaluationA: Satisfactory level, in which the intended target has been achievedB: Almost satisfactory level, in which a part of the intended target has not yet been achieved and some issues still remainC: Unsatisfactory level, in which the intended target has not been achievedFair Operating PracticesThe EnvironmentHuman Rights andLabor PracticesOrganizationalGovernanceCommunity Involvementand DevelopmentAGC Report 201336AGC Report 201335Online Training (e-learning)5,900Approx.Approx.participantsparticipants2,900Group companies and divisions46In-person TrainingOnsite AuditsAGC Glass Europe (AGEU) is striving to maintain healthy business together with its suppliers by taking advantage of its InnoWiz program. The program provides a system for evaluating innovative ideas submitted by employees and implementing those that are feasible. Launched in 2008, the program allows anyone to suggest ideas and publish them on its platform.Taking advantage of this system, in June 2012 AGEU strengthened its partnerships with business partners. AGEU has collected their cost-saving ideas together, then used the InnoWiz system for evaluating and processing the ideas. In addition, AGEU’s technical staff work to make sure the ideas could work. With about 75% of the business partners agreeing to participate, AGEU and these partners have created a win-win situation by confronting the harsh business climate together as a team.Suppliers who join the program receive the added benefit of becoming ‘preferred’ suppliers, allowing them to take part in a privileged 2-year supply program.The AGC Group has been conducting antitrust law compliance training through various methods, such as online training (e-learning). In fiscal 2012, in-person training using real case examples of violations was conducted so that the participants could learn more effectively, with a focus on Japan and countries in Asia and Europe.In the US, over 83% of the top U.S. compa-nies list supply chain issues as the number one challenge for 2013. As the General Manager of AGC Electronics America (AEUS), I’m responsible for our active supplier manage-ment process that educates, supports, and audits the critical suppliers in our supply chain. Along with the usual challenges of logistics and risk mitigation, there is increased pressure on U.S. companies to ensure each vendor’s quality management system includes corporate social responsibility and business conduct codes.There is also increased pressure with our multinational customers who are committed to participating in the Electronics Industry Citizenship Coalition (EICC), a coalition of the world’s leading electronics companies working to improve social, ethical, and environmental responsibility in the global supply chain. This initiative has many similarities with AGC’s CSR program. AEUS has an infrastructure that has been developed over the years and has undergone repeated customer and supplier audits. AEUS is committed to a continuous alignment of our supply chain goals based on our responsibility under the AGC Group CSR and our customers’ requirements.In addition to conducting business fairly, the AGC Group bases its operations on the principles of fair competition and on related applicable laws and ordinances. The Group is also working to promote social responsibility across the supply chain.The AGC Group has not only set and put into effect global guidelines for compliance with antitrust laws but has also been conducting antitrust law compliance training with employees through efforts such as online training (e-learning) and in-person training. In addition, compliance with the guidelines is audited by each Group company and division.AGC Glass EuropePromoting Innovations with Business Partners Using the InnoWiz ProgramAGC GroupImplementing Effective Training on Antitrust Laws“General Manager, AGC Electronics AmericaJeff Schmitt”Committed to a Continuous Alignment of Supply Chain Goals Based on CSR and Customer Needs1•Identify the risks of corruption and implement and maintain policies and practices that counter corruptionAnti-corruption2Anti-corruptionIncluded in "Organizational Governance: Continue to promote compliance" (see page 21-22)Antitrust law trainingKey Performance DataFiscal 2012 Main Measures to Prevent Violations of Antitrust LawsResponsibility to StakeholdersFair Operating Practices•About 5,900 employees participated in online training (e-learning) on antitrust laws, about 2,900 employees participated in in-person training•Conducted audits for compliance with the global guidelines in relation to compliance with the antitrust law at 46 Group companies and divisions•Conduct activities in a manner consistent with competition laws and regulations, and cooperate with the appropriate authorities•Establish procedures to prevent engaging in anti-competitive behavior•Train employees on the importance of competition legislation and fair competitionFair competitionTo further strengthen training and audit for compliance with antitrust lawsTo further strengthen training and audit for compliance with antitrust laws•Integrate ethical, social, environmental and gender equality criteria and health and safety in its purchasing, distribution and contracting policiesPromoting social responsibility in the value chain•In addition to expanding familiarity with the AGC Group Purchasing Policy, develop policies to grasp the response status of major business partnersPromote social responsibility across the supply chainNEWADoFiscal 2012 major initiative resultsSelf-evaluationFiscal 2013 targetsCheckActPlanFiscal 2012 targetsISO 26000 related actions and expectations (major issues)Criteria for Self-evaluationA: Satisfactory level, in which the intended target has been achievedB: Almost satisfactory level, in which a part of the intended target has not yet been achieved and some issues still remainC: Unsatisfactory level, in which the intended target has not been achievedFair Operating PracticesThe EnvironmentHuman Rights andLabor PracticesOrganizationalGovernanceCommunity Involvementand DevelopmentAGC Report 201336AGC Report 201335Total383.7million yen2010201112012 525 million yen 814 million yen383.7 million yenFYAmountSupport for the next generation45%Natural environment conservation 13%Harmony withlocal communities34%Others 7%Note Due to rounding, the percentage sum does not amount to 100%.The Electronics Company has established an indepen-dent policy for guiding its approach to the priority areas of the AGC Group Social Contribution Basic Policy. By making social contribution initiatives a specific mission for site managers, the Electronics Company intends to contribute to local communities and to make these plan meaningful activities meaning-ful for the Electronics Company as well.Specifically, the In-house company holds an annual meeting for personnel in charge of social contribution, including those from the In-house company’s overseas locations, at which they proactively share tips and ways of resolving issues discovered during the initiatives at each location. In addition, the In-house company has created an original performance index which it uses to find good examples and develop them at other locations. In fiscal 2013, there are plans to expand “The Science of Glass”, a traveling class implemented by AGC Electronics with its own products at local elementary and middle schools, to other locations.As a corporate enterprise that contributes to a sustainable society, the AGC Group is implementing initiatives designed to address human rights and labor practices, as well as to solve various environmental and social issues across the entire supply chain, including efforts with suppliers. The Group has emphasized the importance of corporate social responsibility in its AGC Group Purchasing Policy, revised in 2009, and is encouraging suppliers to incorporate the policy and cooper-ate in its enforcement. In 2012, the Group distributed AGC reports to 276 of its main suppliers, including those outside Japan, as a means to promote the AGC Group Purchasing Policy and request cooperation. The Group plans to survey these main suppliers in 2013 to confirm their progress in enforcing the policy.1 Due to expenditures related to the Great East Japan Earthquake, the amount is comparatively greater than other years.•Continuity for 10-20 years•Subjects local communities do not realize•Involving Volunteer activity•Low-key efforts in a modest mannerAGC Group Purchasing Policy (excerpt)Items on which the cooperation of business partners is requested with regard to CSR promotion in the supply chain1.Concentrate to supply products and services with good quality, considering Safety & Environment and Compliance to Laws & Regulations of each country.2.Secure and proper managing of Proprietary informa-tion and Intellectual property.3.Not to be engaged to forced labor or child labor and never tolerate infringements of human rights.4.Make efforts to environment preservation and ensuring safety and security.5.Maintain adequate level of occupational health and safety.Electronics Company Social ContributionBasic Policy(established March 2010)In addition to the Group Code of Conduct, the AGC Group has formulated and implemented global guidelines for compliance with antitrust laws. Under the guidelines, the legitimacy of having a meeting with a competitor company must be thoroughly vetted first. Thereafter, employees are obligated to obtain the permission of superiors in advance of the meeting, and then report in writing the outcome of the meeting. Further, the Group is implementing an array of additional measures, such as antitrust training workshops in each region and organization, monitoring of group enrollment and participation status in trade associations, and auditing of guideline compliance.Taking Conflict Minerals issue as an important CSR issue, the AGC Group improves transparency in the supply chain together with its business partners, ensures responsible mineral sourcing practices. By doing so, the AGC Group fulfill its social responsibility as a global enterprise.With the passage of the financial reform bill in the United States in July 2010, targeted companies are now obligated to disclose use of designated minerals (so-called conflict minerals) mined in the Democratic Republic of the Congo and surrounding countries. The AGC Group confirmed at the end of fiscal 2012 that none of its operations used minerals mined in the designated areas in products listed on questionnaires sent by its customers.Guided by the AGC Group Social Contribution Basic Policy, the AGC Group carries out activities for helping communities around the world. The Group will promote activities meant to contribute to the resolution of social issues in fast-growing countries in which business activities are being developed.The AGC Group promotes activities that contribute to community development, working towards the resolution of social issues deriving from regional business development.In FocusContinuously Applying the PDCA Cycle to Enhance Social Contribution ActivitiesPromoting Supply Chain ManagementPromote social responsibility across the supply chainImprove training and auditing related to compliance with antitrust lawsExpenditures in Fiscal 2012 for Social Contribution ActivitiesAGC Group Social Contribution Basic Policy Priority AreasTotal Financial Expenditure on Social Contribution ActivitiesElectronics CompanyA meeting of personnel in charge of social contribution activitiesSelf-evaluationACompliance with Antitrust LawsInitiatives Related to Conflict MineralsAGC Group Social Contribution Basic PolicyWe, as a creator of future value, support the development of children, who will carry the future, helping them to live out their dreams.Support for the Next GenerationWe, as a member of the communities in which we operate, contribute to their sustainable development.Harmony with Local CommunitiesWe, as a global enterprise, contribute to the solution of global environmental problems.Natural Environment ConservationResponsibility to StakeholdersCommunity Involvement and DevelopmentResponsibility to StakeholdersFair Operating PracticesPDFGlobal legal management system CSR Information Supplement P. 16PDFAGC Group Purchasing Policy (full text) CSR Information Supplement P. 17www.agc.com/english/csr/fair/Content published on the Web:WEBFair Operating Practices•Global Legal Management System•Legal Employment of Contract/Temporary Workers and Compliance with the Worker Dispatching Act•Compliance with the Act against Delay in Payment of Subcontract Proceeds, Etc., to Subcontractors•Prevention of Insider Trading•Maintaining Information Security•Protecting and Respecting Intellectual Property RightsPromoting social responsibility across the supply chain•Promoting Green Procurement•Ombudsman System for Purchasing•Promoting Occupational Health and Safety Education Among Business PartnersQuality Assurance•Improving the Quality of Products and Services•Complying with Legal and Regulatory Requirements for Products•Compliance with the Consumer Products Safety Act•Implementing Quality TrainingCustomer Satisfaction•Pursuit of Customer Satisfaction (CS)•Implementing Full-Scale CS TrainingPDFSocial Contribution Basic Policy (full text), Detailed data regarding social contribution activity expendituresCSR Information Supplement P. 19NEWAGC Report 201338AGC Report 201337Total383.7million yen2010201112012 525 million yen 814 million yen383.7 million yenFYAmountSupport for the next generation45%Natural environment conservation 13%Harmony withlocal communities34%Others 7%Note Due to rounding, the percentage sum does not amount to 100%.The Electronics Company has established an indepen-dent policy for guiding its approach to the priority areas of the AGC Group Social Contribution Basic Policy. By making social contribution initiatives a specific mission for site managers, the Electronics Company intends to contribute to local communities and to make these plan meaningful activities meaning-ful for the Electronics Company as well.Specifically, the In-house company holds an annual meeting for personnel in charge of social contribution, including those from the In-house company’s overseas locations, at which they proactively share tips and ways of resolving issues discovered during the initiatives at each location. In addition, the In-house company has created an original performance index which it uses to find good examples and develop them at other locations. In fiscal 2013, there are plans to expand “The Science of Glass”, a traveling class implemented by AGC Electronics with its own products at local elementary and middle schools, to other locations.As a corporate enterprise that contributes to a sustainable society, the AGC Group is implementing initiatives designed to address human rights and labor practices, as well as to solve various environmental and social issues across the entire supply chain, including efforts with suppliers. The Group has emphasized the importance of corporate social responsibility in its AGC Group Purchasing Policy, revised in 2009, and is encouraging suppliers to incorporate the policy and cooper-ate in its enforcement. In 2012, the Group distributed AGC reports to 276 of its main suppliers, including those outside Japan, as a means to promote the AGC Group Purchasing Policy and request cooperation. The Group plans to survey these main suppliers in 2013 to confirm their progress in enforcing the policy.1 Due to expenditures related to the Great East Japan Earthquake, the amount is comparatively greater than other years.•Continuity for 10-20 years•Subjects local communities do not realize•Involving Volunteer activity•Low-key efforts in a modest mannerAGC Group Purchasing Policy (excerpt)Items on which the cooperation of business partners is requested with regard to CSR promotion in the supply chain1.Concentrate to supply products and services with good quality, considering Safety & Environment and Compliance to Laws & Regulations of each country.2.Secure and proper managing of Proprietary informa-tion and Intellectual property.3.Not to be engaged to forced labor or child labor and never tolerate infringements of human rights.4.Make efforts to environment preservation and ensuring safety and security.5.Maintain adequate level of occupational health and safety.Electronics Company Social ContributionBasic Policy(established March 2010)In addition to the Group Code of Conduct, the AGC Group has formulated and implemented global guidelines for compliance with antitrust laws. Under the guidelines, the legitimacy of having a meeting with a competitor company must be thoroughly vetted first. Thereafter, employees are obligated to obtain the permission of superiors in advance of the meeting, and then report in writing the outcome of the meeting. Further, the Group is implementing an array of additional measures, such as antitrust training workshops in each region and organization, monitoring of group enrollment and participation status in trade associations, and auditing of guideline compliance.Taking Conflict Minerals issue as an important CSR issue, the AGC Group improves transparency in the supply chain together with its business partners, ensures responsible mineral sourcing practices. By doing so, the AGC Group fulfill its social responsibility as a global enterprise.With the passage of the financial reform bill in the United States in July 2010, targeted companies are now obligated to disclose use of designated minerals (so-called conflict minerals) mined in the Democratic Republic of the Congo and surrounding countries. The AGC Group confirmed at the end of fiscal 2012 that none of its operations used minerals mined in the designated areas in products listed on questionnaires sent by its customers.Guided by the AGC Group Social Contribution Basic Policy, the AGC Group carries out activities for helping communities around the world. The Group will promote activities meant to contribute to the resolution of social issues in fast-growing countries in which business activities are being developed.The AGC Group promotes activities that contribute to community development, working towards the resolution of social issues deriving from regional business development.In FocusContinuously Applying the PDCA Cycle to Enhance Social Contribution ActivitiesPromoting Supply Chain ManagementPromote social responsibility across the supply chainImprove training and auditing related to compliance with antitrust lawsExpenditures in Fiscal 2012 for Social Contribution ActivitiesAGC Group Social Contribution Basic Policy Priority AreasTotal Financial Expenditure on Social Contribution ActivitiesElectronics CompanyA meeting of personnel in charge of social contribution activitiesSelf-evaluationACompliance with Antitrust LawsInitiatives Related to Conflict MineralsAGC Group Social Contribution Basic PolicyWe, as a creator of future value, support the development of children, who will carry the future, helping them to live out their dreams.Support for the Next GenerationWe, as a member of the communities in which we operate, contribute to their sustainable development.Harmony with Local CommunitiesWe, as a global enterprise, contribute to the solution of global environmental problems.Natural Environment ConservationResponsibility to StakeholdersCommunity Involvement and DevelopmentResponsibility to StakeholdersFair Operating PracticesPDFGlobal legal management system CSR Information Supplement P. 16PDFAGC Group Purchasing Policy (full text) CSR Information Supplement P. 17www.agc.com/english/csr/fair/Content published on the Web:WEBFair Operating Practices•Global Legal Management System•Legal Employment of Contract/Temporary Workers and Compliance with the Worker Dispatching Act•Compliance with the Act against Delay in Payment of Subcontract Proceeds, Etc., to Subcontractors•Prevention of Insider Trading•Maintaining Information Security•Protecting and Respecting Intellectual Property RightsPromoting social responsibility across the supply chain•Promoting Green Procurement•Ombudsman System for Purchasing•Promoting Occupational Health and Safety Education Among Business PartnersQuality Assurance•Improving the Quality of Products and Services•Complying with Legal and Regulatory Requirements for Products•Compliance with the Consumer Products Safety Act•Implementing Quality TrainingCustomer Satisfaction•Pursuit of Customer Satisfaction (CS)•Implementing Full-Scale CS TrainingPDFSocial Contribution Basic Policy (full text), Detailed data regarding social contribution activity expendituresCSR Information Supplement P. 19NEWAGC Report 201338AGC Report 201337ThailandBrazilSouth KoreaThe UKJapanRussiaAsia South AmericaEuropeDr. Yoshihiro Hayashi, Chairman of the Selection Committee makes an explanation about the selection process, and the recipients with their familiesThe Blue Planet Prize is an international environmental award that, as of 2012, has been presented a total of 21 times. It is presented annually to two individuals or organizations that make significant contributions in scientific research or applications, and practices to solve global environmental problems.In 2012, the Blue Planet Prize was awarded jointly to Professor William E. Rees of Canada and Dr. Mathis Wackernagel of Switzerland for their significant contribution to re-assessing the risk of overconsump-tion through their development of the Ecological Footprint, which indicates how much human beings depend on the natural environment. The prize was also awarded to Dr. Thomas E. Lovejoy of the United States for his considerable influence on environmental conser-vation worldwide as the first person to scientifically demonstrate the global environmental dangers of biodiversity loss caused by human activities.The announcement of the prize-winners was made on June 17 at the United Nations Conference on Sustainable Development (Rio+20), held in Rio de Janeiro, Brazil.Content published on the Webwww.agc.com/english/csr/social/activity_2.htmlSupport for the Next Generationwww.agc.com/english/csr/social/activity_3.htmlHarmony with Local Communitieswww.agc.com/english/csr/social/activity_4.htmlNatural Environment ConservationSocial Contribution Activity CasesIn Japan—In Russia—In Thailand—In South Korea—In Brazil—In the UK—AGC Chemicals EuropeAGC Bor GlassworksGlass CompanyAsahi GlassAGC Flat Glass (Thailand) PublicAGC Display Glass OchangIn FocusOne Research Group and One Individual Receive the Blue Planet Prize in 2012Responsibility to StakeholdersCommunity Involvement and DevelopmentWEBFiscal 2012 Social Contribution InitiativesContributing to the Resolution of Educationand Poverty Issues to Facilitate ProsperousCoexistence with Brazilian SocietySafety Glass for Natural Disasters Donatedto Mouka City, Tochigi Prefecture, Following Tornado DamageOngoing Volunteer Activities atOrphanages in South KoreaAGC Bor Glassworks Engages Communityin Local CleanupAFT Supports Art Students withHomeland Development ProgramEnvironmental Workshops forSchoolchildrenHarmonywith LocalCommunitiesSupportfor the NextGenerationNaturalEnvironmentConservationHarmonywith LocalCommunitiesHarmonywith LocalCommunitiesSupportfor the NextGenerationFair Operating PracticesThe EnvironmentHuman Rights andLabor PracticesOrganizationalGovernanceCommunity Involvementand DevelopmentAGC Report 201340AGC Report 201339ThailandBrazilSouth KoreaThe UKJapanRussiaAsia South AmericaEuropeDr. Yoshihiro Hayashi, Chairman of the Selection Committee makes an explanation about the selection process, and the recipients with their familiesThe Blue Planet Prize is an international environmental award that, as of 2012, has been presented a total of 21 times. It is presented annually to two individuals or organizations that make significant contributions in scientific research or applications, and practices to solve global environmental problems.In 2012, the Blue Planet Prize was awarded jointly to Professor William E. Rees of Canada and Dr. Mathis Wackernagel of Switzerland for their significant contribution to re-assessing the risk of overconsump-tion through their development of the Ecological Footprint, which indicates how much human beings depend on the natural environment. The prize was also awarded to Dr. Thomas E. Lovejoy of the United States for his considerable influence on environmental conser-vation worldwide as the first person to scientifically demonstrate the global environmental dangers of biodiversity loss caused by human activities.The announcement of the prize-winners was made on June 17 at the United Nations Conference on Sustainable Development (Rio+20), held in Rio de Janeiro, Brazil.Content published on the Webwww.agc.com/english/csr/social/activity_2.htmlSupport for the Next Generationwww.agc.com/english/csr/social/activity_3.htmlHarmony with Local Communitieswww.agc.com/english/csr/social/activity_4.htmlNatural Environment ConservationSocial Contribution Activity CasesIn Japan—In Russia—In Thailand—In South Korea—In Brazil—In the UK—AGC Chemicals EuropeAGC Bor GlassworksGlass CompanyAsahi GlassAGC Flat Glass (Thailand) PublicAGC Display Glass OchangIn FocusOne Research Group and One Individual Receive the Blue Planet Prize in 2012Responsibility to StakeholdersCommunity Involvement and DevelopmentWEBFiscal 2012 Social Contribution InitiativesContributing to the Resolution of Educationand Poverty Issues to Facilitate ProsperousCoexistence with Brazilian SocietySafety Glass for Natural Disasters Donatedto Mouka City, Tochigi Prefecture, Following Tornado DamageOngoing Volunteer Activities atOrphanages in South KoreaAGC Bor Glassworks Engages Communityin Local CleanupAFT Supports Art Students withHomeland Development ProgramEnvironmental Workshops forSchoolchildrenHarmonywith LocalCommunitiesSupportfor the NextGenerationNaturalEnvironmentConservationHarmonywith LocalCommunitiesHarmonywith LocalCommunitiesSupportfor the NextGenerationFair Operating PracticesThe EnvironmentHuman Rights andLabor PracticesOrganizationalGovernanceCommunity Involvementand DevelopmentAGC Report 201340AGC Report 201339Nominating Committee:4 Directors(of which 3 are outside directors)Deliberate on candidates for director and executive officer positions, and make recommendations to the Board of Directors5 timesCompensation Committee:4 Directors(of which 3 are outside directors)Deliberate on the compensa-tion system for directors and executive officers, directors’ compensation limits and bonuses to be reported to the general shareholders meeting, and the amount of compensation for executive officers6 timesGeneral Meeting of ShareholdersManagement CommitteeIn-house Companies/Strategic Business Unit (SBU)2CSR CommitteeExecutive Officers:27 OfficersManagement OversightBusiness ExecutionGroup Corporate FunctionBusiness Operations FunctionMutual CooperationCorporate Auditors: 4 Auditors(Including 3 OutsideCorporate Auditors)Independent AccountantsNominating Committee:4 Directors(Including 3 Outside Directors)Compliance CommitteeFair Trade CommitteeInformation Management CouncilSecurity Export ControlHeadquartersCompensation Committee:4 Directors(Including 3 Outside Directors)1 SBU:AGC Ceramics3 In-house Companies:GlassElectronicsChemicalsBoard of Directors: 7 Directors(Including 3 Outside Directors)President & CEOSenior Executive Vice President &Overall business managementExecutive Vice President &Overall business managementSenior Executive Officer &Overall business managementGroupCorporateInternal AuditOfficeBoard of Directors Meetings in Fiscal 2012• Meetings held: 13• Attendance rate of each director in meetings: 100%Standards for Independence of Outside Officers (Summary)• An outside officer shall not be a business executing person from a company competing in the same industries as the AGC Group, a company which has the AGC Group as a major business counterparty or a major business counterparty of the AGC Group (in the past three years), or a major shareholder of Asahi Glass.• An outside officer will not have received a significant sum of money (in the past three years) from the AGC Group besides compensation designated for their respective position.• An outside officer shall not have been an employee of an auditing firm that has conducted audits on the AGC Group in the past three years.• The absence of serious conflicts of interest between the Company and an outside officer, or any matter between the Company and an outside officer that may damage his or her independence.Asahi Glass began employing outside directors in 2002 in an effort to enhance the management oversight function. The appointment of outside directors is carried out in accordance with requirements under the Companies Act of Japan as well as Asahi Glass’ own selection criteria designed to ensure director independence (see page 42 for details). The three outside directors also fulfill the criteria for Independent Directors set forth by the securities listing regulations and enforcement rules for the securities listing regulations.The term of office for outside directors is one year, during which they are expected to draw on their extensive experience in global corporate management to offer propos-als in the Board of Directors concerning general management from an independent standpoint.As stated in its basic policy concerning corporate governance, the AGC Group clearly separates the functions of oversight and execution of management, aiming to strengthen the management oversight function.By establishing a sound and effective system of corpo-rate governance, the Group ensures the appropriate supervi-sion of operations as it strives to realize highly efficient and transparent management.The Board of Directors of Asahi Glass comprises seven directors, including three outside directors1, and is tasked with approving the AGC Group’s basic policy and monitoring the execution of its management.Asahi Glass employs corporate auditors who audit the perfor-mance of directors by attending important meetings such as management committee sessions and holding regular meetings with representative directors. The corporate auditors also enhance the effectiveness of auditing by exchanging views and obtaining information concerning audit results and other matters in cooperation with accounting auditors and the Internal Audit Office. As of March 28, 2013, Asahi Glass employed four corporate auditors in total, of which three were outside auditors. All three fulfill the requirements of the Companies Act, as well as standards for independence set forth by our company (see list at right). The outside auditors also fulfill the criteria for Independent Auditors set forth by securities listing regulations and the enforcement rules for the securities listing regulations.Asahi Glass established its Nominating and Compensation Committees in 2003 as voluntary advisory committees of the Board of Directors.To enable outside directors to effectively oversee operations based on adequate information about the Company, the Office of the President, which serves as the Secretariat of the Board of Directors, notifies them about Board of Directors meetings, distributes related materials beforehand, and provides full explanations of agenda items for the meetings in advance.Likewise, to enable outside corporate auditors to more effectively perform audits, the Secretariat of the Board of Corporate Auditors holds Board of Corporate Auditors meetings, and assists them in coordinating meetings with representative directors and accounting auditors.At Asahi Glass, the management execution function is the responsibility of executive officers below the president & CEO. As an advisory committee to the president & CEO, Asahi Glass establishes the Management Committees and discusses business management monitoring and decisions regarding management execution. A system of In-house Companies (quasi-subsidiaries within the Group) has been introduced and a global consolidated management system is adopted with regard to business execution. Much of the responsibility and authority for business execution has been delegated to the In-house Companies and the Strategic Business Unit.Asahi Glass has set the following standards to ensure the independence of outside directors and outside corporate auditors.1 As of March 28, 2013Note: Please refer to the Corporate Governance Report (submitted to TSE) for the full list of standards.2 An In-house Company is defined as a business unit with net sales exceeding 200 billion yen which conducts its business globally. At present, there are three In-house Companies: the Glass Company, the Electronics Company and the Chemicals Company. Business units smaller than this are defined as Strategic Business Units (SBUs).Committee Activities in Fiscal 2012Committee andmembersDutiesNumber ofmeetingsheldOverview of Corporate Governance Structure (as of March 28, 2013)Company Organizations Support Effective Supervision and AuditingExecutive Officers Perform their Duties Promptlyand Appropriately while Each In-House CompanyFlexibly Manages the BusinessApproach to Corporate GovernanceFramework for Management OversightFramework for Management ExecutionBoard of DirectorsOpinions and Evaluations of Outside Directors Improve the Transparency and Objectivity of the Board of DirectorsBoard of Corporate AuditorsEnhancing the Effectiveness of Audits with Accounting Auditors and the Internal Audit Organization while Auditing the Performance of DirectorsFramework for Enhancing the ManagementOversight FunctionSupport System for Outside OfficersStandards for Independence of Outside OfficersEarly Establishment of a Non-Statutory Nominatingand Compensation Committees in 2003While strengthening corporate governance on an ongoing basis, the AGC Group clearly separates management oversight and execution with the goal of realizing highly efficient and transparent management.Corporate GovernanceAGC Report 201342AGC Report 201341Nominating Committee:4 Directors(of which 3 are outside directors)Deliberate on candidates for director and executive officer positions, and make recommendations to the Board of Directors5 timesCompensation Committee:4 Directors(of which 3 are outside directors)Deliberate on the compensa-tion system for directors and executive officers, directors’ compensation limits and bonuses to be reported to the general shareholders meeting, and the amount of compensation for executive officers6 timesGeneral Meeting of ShareholdersManagement CommitteeIn-house Companies/Strategic Business Unit (SBU)2CSR CommitteeExecutive Officers:27 OfficersManagement OversightBusiness ExecutionGroup Corporate FunctionBusiness Operations FunctionMutual CooperationCorporate Auditors: 4 Auditors(Including 3 OutsideCorporate Auditors)Independent AccountantsNominating Committee:4 Directors(Including 3 Outside Directors)Compliance CommitteeFair Trade CommitteeInformation Management CouncilSecurity Export ControlHeadquartersCompensation Committee:4 Directors(Including 3 Outside Directors)1 SBU:AGC Ceramics3 In-house Companies:GlassElectronicsChemicalsBoard of Directors: 7 Directors(Including 3 Outside Directors)President & CEOSenior Executive Vice President &Overall business managementExecutive Vice President &Overall business managementSenior Executive Officer &Overall business managementGroupCorporateInternal AuditOfficeBoard of Directors Meetings in Fiscal 2012• Meetings held: 13• Attendance rate of each director in meetings: 100%Standards for Independence of Outside Officers (Summary)• An outside officer shall not be a business executing person from a company competing in the same industries as the AGC Group, a company which has the AGC Group as a major business counterparty or a major business counterparty of the AGC Group (in the past three years), or a major shareholder of Asahi Glass.• An outside officer will not have received a significant sum of money (in the past three years) from the AGC Group besides compensation designated for their respective position.• An outside officer shall not have been an employee of an auditing firm that has conducted audits on the AGC Group in the past three years.• The absence of serious conflicts of interest between the Company and an outside officer, or any matter between the Company and an outside officer that may damage his or her independence.Asahi Glass began employing outside directors in 2002 in an effort to enhance the management oversight function. The appointment of outside directors is carried out in accordance with requirements under the Companies Act of Japan as well as Asahi Glass’ own selection criteria designed to ensure director independence (see page 42 for details). The three outside directors also fulfill the criteria for Independent Directors set forth by the securities listing regulations and enforcement rules for the securities listing regulations.The term of office for outside directors is one year, during which they are expected to draw on their extensive experience in global corporate management to offer propos-als in the Board of Directors concerning general management from an independent standpoint.As stated in its basic policy concerning corporate governance, the AGC Group clearly separates the functions of oversight and execution of management, aiming to strengthen the management oversight function.By establishing a sound and effective system of corpo-rate governance, the Group ensures the appropriate supervi-sion of operations as it strives to realize highly efficient and transparent management.The Board of Directors of Asahi Glass comprises seven directors, including three outside directors1, and is tasked with approving the AGC Group’s basic policy and monitoring the execution of its management.Asahi Glass employs corporate auditors who audit the perfor-mance of directors by attending important meetings such as management committee sessions and holding regular meetings with representative directors. The corporate auditors also enhance the effectiveness of auditing by exchanging views and obtaining information concerning audit results and other matters in cooperation with accounting auditors and the Internal Audit Office. As of March 28, 2013, Asahi Glass employed four corporate auditors in total, of which three were outside auditors. All three fulfill the requirements of the Companies Act, as well as standards for independence set forth by our company (see list at right). The outside auditors also fulfill the criteria for Independent Auditors set forth by securities listing regulations and the enforcement rules for the securities listing regulations.Asahi Glass established its Nominating and Compensation Committees in 2003 as voluntary advisory committees of the Board of Directors.To enable outside directors to effectively oversee operations based on adequate information about the Company, the Office of the President, which serves as the Secretariat of the Board of Directors, notifies them about Board of Directors meetings, distributes related materials beforehand, and provides full explanations of agenda items for the meetings in advance.Likewise, to enable outside corporate auditors to more effectively perform audits, the Secretariat of the Board of Corporate Auditors holds Board of Corporate Auditors meetings, and assists them in coordinating meetings with representative directors and accounting auditors.At Asahi Glass, the management execution function is the responsibility of executive officers below the president & CEO. As an advisory committee to the president & CEO, Asahi Glass establishes the Management Committees and discusses business management monitoring and decisions regarding management execution. A system of In-house Companies (quasi-subsidiaries within the Group) has been introduced and a global consolidated management system is adopted with regard to business execution. Much of the responsibility and authority for business execution has been delegated to the In-house Companies and the Strategic Business Unit.Asahi Glass has set the following standards to ensure the independence of outside directors and outside corporate auditors.1 As of March 28, 2013Note: Please refer to the Corporate Governance Report (submitted to TSE) for the full list of standards.2 An In-house Company is defined as a business unit with net sales exceeding 200 billion yen which conducts its business globally. At present, there are three In-house Companies: the Glass Company, the Electronics Company and the Chemicals Company. Business units smaller than this are defined as Strategic Business Units (SBUs).Committee Activities in Fiscal 2012Committee andmembersDutiesNumber ofmeetingsheldOverview of Corporate Governance Structure (as of March 28, 2013)Company Organizations Support Effective Supervision and AuditingExecutive Officers Perform their Duties Promptlyand Appropriately while Each In-House CompanyFlexibly Manages the BusinessApproach to Corporate GovernanceFramework for Management OversightFramework for Management ExecutionBoard of DirectorsOpinions and Evaluations of Outside Directors Improve the Transparency and Objectivity of the Board of DirectorsBoard of Corporate AuditorsEnhancing the Effectiveness of Audits with Accounting Auditors and the Internal Audit Organization while Auditing the Performance of DirectorsFramework for Enhancing the ManagementOversight FunctionSupport System for Outside OfficersStandards for Independence of Outside OfficersEarly Establishment of a Non-Statutory Nominatingand Compensation Committees in 2003While strengthening corporate governance on an ongoing basis, the AGC Group clearly separates management oversight and execution with the goal of realizing highly efficient and transparent management.Corporate GovernanceAGC Report 201342AGC Report 201341All directorsOutside directors onlyAll corporate auditorsOutside corporate auditors only7343Number ofrecipients417469357Total payment(millions of yen)DirectorsFixedcompensationMonthlycompensationAll directorsPerformance-linked compensationCorporate auditorsFixedcompensationPerformance-linked bonusesDirectors whoalso serve asexecutive officersStock compensation-type stock optionsDirectorsexcludingoutside directorsMonthlycompensationAll corporate auditorsType of compensationEligible personsEuropeanAuditing DivisionAGC Group companiesin EuropeJapan/AsiaAuditing DivisionAGC Group companiesin Asia including JapanNorth AmericaAuditing DivisionAGC Group companiesin North AmericaReporting of audit results, etc.Evaluation, policy and planning, education, etc.Monitoring, suggested improvements, etc.Internal AuditGlobal LeaderRegional Leaders(Europe)Regional Leaders(Japan/Asia)Regional Leaders(North America)Board of DirectorsGroup CEO,Corporate Auditors• The compensation system shall be one that enables the Company to attract, secure and reward diverse and talented personnel, in order to establish and expand the Company’s edge over its peers.• The compensation system shall be one that promotes continued improvement of corporate value, and in this way allows shareholders and management to share gains• The compensation system shall be one that gives motivations to achieve performance goals relating to management strategies for the AGC Group’s continuous development.• The decision-making process of determining compen-sation shall be objective and highly transparent.In its Compensation Principles, Asahi Glass sets out its basic stances and philosophies on overall compensation for officers as follows.In response to the establishment of the Companies Act, Asahi Glass voted on its corporate policy over internal control at the Board of Directors meeting held in May 2006. The aim was to review and ensure the appropriateness of its business opera-tion systems, including the compliance system.The Company adopted an internal control reporting system in compliance with Japan’s Financial Instruments and Exchange Act, and then established the AGC Group Internal Control over Financial Reporting Implementation Regulations. Based on these regulations, the Group maintains, operates and evaluates internal controls for financial reporting.An external auditor evaluated the Group’s internal control systems in fiscal 2011 and 2012, and confirmed that the systems were effective and compliant. In fiscal 2012, an online training program for employees is planned with the aim of strengthening internal control functions.The Compensation Committee deliberates on matters such as the compensation system and level for directors and executive officers based on the Compensation Principles, makes proposals regarding them to the Board of Directors, and verifies the results of compensation payments in order to increase the objectivity and transparency of the compensation determination process.Under the Company’s compensation system, outside directors and corporate auditors receive fixed compensation in the form of monthly compensation. Directors who serve as executive officers receive monthly compensation as well as performance-linked compensation in the form of bonuses and stock compensation-type stock options.The amount of the Bonuses, which is aimed at motivat-ing recipients to achieve their single-fiscal-year business In order to maintain the independence of internal auditing divisions and implement effective and efficient auditing, the AGC Group has set up a framework that assigns the internal audit global leader under the supervision of the Group CEO to oversee the regional leaders of Asia including Japan, Europe and North America. Under this system, each regional auditing division monitors their respective organization and works to make improvements. The global leader in charge of these divisions promptly reports on results to the Group CEO, and periodically submits reports to the Board of Corporate Auditors and the Board of Directors.The AGC Group is united in its efforts regarding risk manage-ment. Founded on the corporate policy over internal control determined by the Board of Directors, the AGC Group defines its important risk factors, assesses their management status and reports the results to the Management Committee and the Board of Directors for periodic discussion. Divisions with jurisdiction over specific risk formulate action plans for risk management and develop a Plan, Do, Check and Act (PDCA) cycle in order to continuously improve and reform the level of risk management.The AGC Group began formulating its business continuity plan (BCP) in fiscal 2008 to prepare for a large-scale accident or disaster. Additionally, in March 2011, the Group issued the AGC Group Business Continuity Plan (BCP) Development Guideline as guidelines for use by divisions and sites when formulating BCPs for each type of risk. BCPs are reliably implemented and assessed based on the business continuity management process (BCM) for continuously maintaining and improving BCPs.In March 2011, the Group established the AGC Group Basic Principle to Cope with Natural Disasters to prepare for large-scale natural disasters that might take place in the regions in which the Group operates, and as a means to promote integrated and comprehensive countermeasures at sites in regions around the world where disaster risks are particularly high.In response to the Great East Japan Earthquake that occurred in March 2011, the Group revised these basic principles in December, 2011 and established Rules for the AGC Group Emergency Headquarters (Natural Disasters Version). Furthermore, simulated drills for carrying out a business continuity plan were jointly conducted by business sites in Japan based on multiple scenarios, including a fiscal 2011 simulation of damage to the head office and other sites caused by three major successive earthquakes occurring in the country’s Tokai, Tonankai and Nankai regions, and in fiscal 2012 of an earthquake occurring directly under the Tokyo metropolitan area on a holiday.Examples of Risks Managed by the AGC Group as a whole Include Those Related to the Following:• Natural disasters such as earthquakes• Environmental regulations• Market conditions with regard to product demand• Occupational accidents• Product liability• Procurement of resources• Overseas Business development results goals, varies depending on consolidated business results for a single fiscal year. The Stock Compensation-Type Stock Options are intended to allow recipients to share benefits and risks associated with stock price fluctuations with our shareholders, and enhance their motivation and morale so as to raise business results and corporate value on a medium to long term basis.Composition of Compensation for Directors andCorporate AuditorsInternal Audit System StructureCompensation to Directors and Corporate Auditorsin Fiscal 2012AGC Group BCP Development GuidelinesPublished for Use in Establishing Risk-Related BCPsCompensation SystemInternal AuditsBasic Philosophy on Compensation SystemEstablishing an Objective and HighlyTransparent Compensation SystemInternal ControlImplementing Online Training for Employees toStrengthen Internal ControlCompensation Determination MethodEnsuring the Objectivity and Transparency of theCompany’s Compensation Decision-Making ProcessComposition of CompensationFundamental ApproachOutside Directors Receive Fixed Compensationwhile Inside Directors Receive both Fixed andPerformance-Linked CompensationEstablishment of a Framework which the InternalAudit Global Leader Oversees Regional LeadersRisk Response Action Plan and PDCA CycleRisk ManagementBusiness Continuity Management (BCM)StructureAGC Group Basic Principle to Cope with NaturalDisasters Established to Promote DisasterPreparedness at High-Risk LocationsMeasures for Natural DisastersCorporate GovernanceInternal Audits / Risk ManagementEstablished an internal audit framework centered on the internal audit global leader and determined major risk factors which are reported and discussed on a regular basisAGC Report 201344AGC Report 201343All directorsOutside directors onlyAll corporate auditorsOutside corporate auditors only7343Number ofrecipients417469357Total payment(millions of yen)DirectorsFixedcompensationMonthlycompensationAll directorsPerformance-linked compensationCorporate auditorsFixedcompensationPerformance-linked bonusesDirectors whoalso serve asexecutive officersStock compensation-type stock optionsDirectorsexcludingoutside directorsMonthlycompensationAll corporate auditorsType of compensationEligible personsEuropeanAuditing DivisionAGC Group companiesin EuropeJapan/AsiaAuditing DivisionAGC Group companiesin Asia including JapanNorth AmericaAuditing DivisionAGC Group companiesin North AmericaReporting of audit results, etc.Evaluation, policy and planning, education, etc.Monitoring, suggested improvements, etc.Internal AuditGlobal LeaderRegional Leaders(Europe)Regional Leaders(Japan/Asia)Regional Leaders(North America)Board of DirectorsGroup CEO,Corporate Auditors• The compensation system shall be one that enables the Company to attract, secure and reward diverse and talented personnel, in order to establish and expand the Company’s edge over its peers.• The compensation system shall be one that promotes continued improvement of corporate value, and in this way allows shareholders and management to share gains• The compensation system shall be one that gives motivations to achieve performance goals relating to management strategies for the AGC Group’s continuous development.• The decision-making process of determining compen-sation shall be objective and highly transparent.In its Compensation Principles, Asahi Glass sets out its basic stances and philosophies on overall compensation for officers as follows.In response to the establishment of the Companies Act, Asahi Glass voted on its corporate policy over internal control at the Board of Directors meeting held in May 2006. The aim was to review and ensure the appropriateness of its business opera-tion systems, including the compliance system.The Company adopted an internal control reporting system in compliance with Japan’s Financial Instruments and Exchange Act, and then established the AGC Group Internal Control over Financial Reporting Implementation Regulations. Based on these regulations, the Group maintains, operates and evaluates internal controls for financial reporting.An external auditor evaluated the Group’s internal control systems in fiscal 2011 and 2012, and confirmed that the systems were effective and compliant. In fiscal 2012, an online training program for employees is planned with the aim of strengthening internal control functions.The Compensation Committee deliberates on matters such as the compensation system and level for directors and executive officers based on the Compensation Principles, makes proposals regarding them to the Board of Directors, and verifies the results of compensation payments in order to increase the objectivity and transparency of the compensation determination process.Under the Company’s compensation system, outside directors and corporate auditors receive fixed compensation in the form of monthly compensation. Directors who serve as executive officers receive monthly compensation as well as performance-linked compensation in the form of bonuses and stock compensation-type stock options.The amount of the Bonuses, which is aimed at motivat-ing recipients to achieve their single-fiscal-year business In order to maintain the independence of internal auditing divisions and implement effective and efficient auditing, the AGC Group has set up a framework that assigns the internal audit global leader under the supervision of the Group CEO to oversee the regional leaders of Asia including Japan, Europe and North America. Under this system, each regional auditing division monitors their respective organization and works to make improvements. The global leader in charge of these divisions promptly reports on results to the Group CEO, and periodically submits reports to the Board of Corporate Auditors and the Board of Directors.The AGC Group is united in its efforts regarding risk manage-ment. Founded on the corporate policy over internal control determined by the Board of Directors, the AGC Group defines its important risk factors, assesses their management status and reports the results to the Management Committee and the Board of Directors for periodic discussion. Divisions with jurisdiction over specific risk formulate action plans for risk management and develop a Plan, Do, Check and Act (PDCA) cycle in order to continuously improve and reform the level of risk management.The AGC Group began formulating its business continuity plan (BCP) in fiscal 2008 to prepare for a large-scale accident or disaster. Additionally, in March 2011, the Group issued the AGC Group Business Continuity Plan (BCP) Development Guideline as guidelines for use by divisions and sites when formulating BCPs for each type of risk. BCPs are reliably implemented and assessed based on the business continuity management process (BCM) for continuously maintaining and improving BCPs.In March 2011, the Group established the AGC Group Basic Principle to Cope with Natural Disasters to prepare for large-scale natural disasters that might take place in the regions in which the Group operates, and as a means to promote integrated and comprehensive countermeasures at sites in regions around the world where disaster risks are particularly high.In response to the Great East Japan Earthquake that occurred in March 2011, the Group revised these basic principles in December, 2011 and established Rules for the AGC Group Emergency Headquarters (Natural Disasters Version). Furthermore, simulated drills for carrying out a business continuity plan were jointly conducted by business sites in Japan based on multiple scenarios, including a fiscal 2011 simulation of damage to the head office and other sites caused by three major successive earthquakes occurring in the country’s Tokai, Tonankai and Nankai regions, and in fiscal 2012 of an earthquake occurring directly under the Tokyo metropolitan area on a holiday.Examples of Risks Managed by the AGC Group as a whole Include Those Related to the Following:• Natural disasters such as earthquakes• Environmental regulations• Market conditions with regard to product demand• Occupational accidents• Product liability• Procurement of resources• Overseas Business development results goals, varies depending on consolidated business results for a single fiscal year. The Stock Compensation-Type Stock Options are intended to allow recipients to share benefits and risks associated with stock price fluctuations with our shareholders, and enhance their motivation and morale so as to raise business results and corporate value on a medium to long term basis.Composition of Compensation for Directors andCorporate AuditorsInternal Audit System StructureCompensation to Directors and Corporate Auditorsin Fiscal 2012AGC Group BCP Development GuidelinesPublished for Use in Establishing Risk-Related BCPsCompensation SystemInternal AuditsBasic Philosophy on Compensation SystemEstablishing an Objective and HighlyTransparent Compensation SystemInternal ControlImplementing Online Training for Employees toStrengthen Internal ControlCompensation Determination MethodEnsuring the Objectivity and Transparency of theCompany’s Compensation Decision-Making ProcessComposition of CompensationFundamental ApproachOutside Directors Receive Fixed Compensationwhile Inside Directors Receive both Fixed andPerformance-Linked CompensationEstablishment of a Framework which the InternalAudit Global Leader Oversees Regional LeadersRisk Response Action Plan and PDCA CycleRisk ManagementBusiness Continuity Management (BCM)StructureAGC Group Basic Principle to Cope with NaturalDisasters Established to Promote DisasterPreparedness at High-Risk LocationsMeasures for Natural DisastersCorporate GovernanceInternal Audits / Risk ManagementEstablished an internal audit framework centered on the internal audit global leader and determined major risk factors which are reported and discussed on a regular basisAGC Report 201344AGC Report 201343502,0001,2001,5009001,000600500300155030100451506020060,00045,00030,00015,0001,5003001,00020050010010012,0001502010201120121,190.01,190billion yen92.91,214.7165.79,0006,0003,00020089,98020109,22020119,860201210,050201039.4201146.4201248.4117.4152.7155.320101,764.020111,691.620121,899.4849.8850.5996.92010123.2201195.3201250,39950,95749,961Total assetsTotal net assetsR&DCAPEXNet salesOperating incomeGlass31,27563%Electronics10,23620%Chemicals5,03910%201249,96120098,02043.8billion yen10,050thousand tons-CO249,961201020112012200300100233.0243.2229.00229.0billion yen20102011201215%201020%201119%201260903086.181.083.6083.6billion yen2010201120125%20106%20117%2012000051015202010201120125.0ROEROA000Net sales Sales ratio Number of employees and employees ratio Net salesSales ratioNumber of employees and employees ratio 3 From fiscal year 2011, the figure includes both Japan and Asia.4 In fiscal 2010, net sales were 777.6 billion yen in Japan and 495.7 billion yen in Asia.5 In fiscal 2010, the sales ratio was 49% for Japan and 31% for Asia.1,288.9229.20005.21,0001,5005000911.1billion yen201042011201262%(31,139)201230%(14,899)20128%(3,923)20122010574%80%201174%2012Net sales Sales ratio Number of employees and employees ratio 1,273.3923.0911.143.8Net sales92.9billion yenOperating income 1,899.4billion yenTotal assets 996.9billion yenTotal net assets 48.4billion yenR&D ROE 5.0%155.3billion yenCAPEX ROA 5.2%Ceramics/Other3,4117%12.99.611.815.8201020122011Increase (Decrease)Income statement and balance sheet data (million yen)Net sales1Operating incomeNet incomeTotal assetsTotal net assetsSales by business segment (million yen)Glass Electronics Chemicals Ceramics/OtherSales ratio by business segment (%)1Glass Electronics Chemicals Ceramics/OtherOther financial dataResearch and development costs (million yen)Capital expenditures (million yen)Return on equity (ROE) (%)Return on assets (ROA) (%)2¥ 1,288,947 229,205 123,184 1,764,038 849,815¥ 570,921 435,301 260,078 77,305 44 34 20 2¥ 39,399 117,439 15.8 12.9¥ 1,214,672 165,663 95,290 1,691,556 850,460¥ 554,423 386,512 248,573 83,915 46 32 20 2¥ 46,442 152,705 11.8 9.6¥ -24,716 -72,718 -51,500 207,817 146,489¥ 10,182 -42,410 8,694 3,090 — — — —¥ 1,918 2,629 — —¥ 1,189,956 92,945 43,790 1,899,373 996,949¥ 564,605 344,102 257,267 87,005 47 29 21 3¥ 48,360 155,334 5.0 5.2Net sales/Operating incomeNet incomeTotal assets/Total net assetsR&D costs/CAPEXROE/ROANumber of employeesEmployees and employee ratio by business segmentGreenhouse gas emissions 20102012Non-financial dataNumber of employeesTotal energy consumption (PJ)Greenhouse gas emissions (1,000 tons-CO2)Ratio of sales in emerging markets (%)Ratio of environment-related sales (%)Ratio of sales of new products (%)2011Increase (Decrease) -996 3 190 — — — 49,961 150 10,050 20 17 11 50,957 147 9,860 19 16 8 50,399 145 9,220 — — —1 Sales ratios and sales by business segment is calculated using amount of net sales to external customers.2 Based on operating incomeData by regionEuropeNorth AmericaOrganizations Covered in the Report: Asahi Glass Co., Ltd. and its consolidated subsidiariesReporting Period: Consolidated fiscal year ending December 31Japan/Asia3Financial and Non-Financial HighlightsAGC Report 201346AGC Report 201345502,0001,2001,5009001,000600500300155030100451506020060,00045,00030,00015,0001,5003001,00020050010010012,0001502010201120121,190.01,190billion yen92.91,214.7165.79,0006,0003,00020089,98020109,22020119,860201210,050201039.4201146.4201248.4117.4152.7155.320101,764.020111,691.620121,899.4849.8850.5996.92010123.2201195.3201250,39950,95749,961Total assetsTotal net assetsR&DCAPEXNet salesOperating incomeGlass31,27563%Electronics10,23620%Chemicals5,03910%201249,96120098,02043.8billion yen10,050thousand tons-CO249,961201020112012200300100233.0243.2229.00229.0billion yen20102011201215%201020%201119%201260903086.181.083.6083.6billion yen2010201120125%20106%20117%2012000051015202010201120125.0ROEROA000Net sales Sales ratio Number of employees and employees ratio Net salesSales ratioNumber of employees and employees ratio 3 From fiscal year 2011, the figure includes both Japan and Asia.4 In fiscal 2010, net sales were 777.6 billion yen in Japan and 495.7 billion yen in Asia.5 In fiscal 2010, the sales ratio was 49% for Japan and 31% for Asia.1,288.9229.20005.21,0001,5005000911.1billion yen201042011201262%(31,139)201230%(14,899)20128%(3,923)20122010574%80%201174%2012Net sales Sales ratio Number of employees and employees ratio 1,273.3923.0911.143.8Net sales92.9billion yenOperating income 1,899.4billion yenTotal assets 996.9billion yenTotal net assets 48.4billion yenR&D ROE 5.0%155.3billion yenCAPEX ROA 5.2%Ceramics/Other3,4117%12.99.611.815.8201020122011Increase (Decrease)Income statement and balance sheet data (million yen)Net sales1Operating incomeNet incomeTotal assetsTotal net assetsSales by business segment (million yen)Glass Electronics Chemicals Ceramics/OtherSales ratio by business segment (%)1Glass Electronics Chemicals Ceramics/OtherOther financial dataResearch and development costs (million yen)Capital expenditures (million yen)Return on equity (ROE) (%)Return on assets (ROA) (%)2¥ 1,288,947 229,205 123,184 1,764,038 849,815¥ 570,921 435,301 260,078 77,305 44 34 20 2¥ 39,399 117,439 15.8 12.9¥ 1,214,672 165,663 95,290 1,691,556 850,460¥ 554,423 386,512 248,573 83,915 46 32 20 2¥ 46,442 152,705 11.8 9.6¥ -24,716 -72,718 -51,500 207,817 146,489¥ 10,182 -42,410 8,694 3,090 — — — —¥ 1,918 2,629 — —¥ 1,189,956 92,945 43,790 1,899,373 996,949¥ 564,605 344,102 257,267 87,005 47 29 21 3¥ 48,360 155,334 5.0 5.2Net sales/Operating incomeNet incomeTotal assets/Total net assetsR&D costs/CAPEXROE/ROANumber of employeesEmployees and employee ratio by business segmentGreenhouse gas emissions 20102012Non-financial dataNumber of employeesTotal energy consumption (PJ)Greenhouse gas emissions (1,000 tons-CO2)Ratio of sales in emerging markets (%)Ratio of environment-related sales (%)Ratio of sales of new products (%)2011Increase (Decrease) -996 3 190 — — — 49,961 150 10,050 20 17 11 50,957 147 9,860 19 16 8 50,399 145 9,220 — — —1 Sales ratios and sales by business segment is calculated using amount of net sales to external customers.2 Based on operating incomeData by regionEuropeNorth AmericaOrganizations Covered in the Report: Asahi Glass Co., Ltd. and its consolidated subsidiariesReporting Period: Consolidated fiscal year ending December 31Japan/Asia3Financial and Non-Financial HighlightsAGC Report 201346AGC Report 201345Sales and Sales Ratio by RegionJapan/AsiaSales RatioSales TrendsMain Products/Services• Flat glassFloat glassLow-emissivity (Low-E) glassDouble glazing glass for solar control/heat-insulationSafety glassDecorative glassGlass for solar power systems• Automotive glassTempered automotive glassLaminated automotive glass• Display glassGlass substrates for LCD-TFTsGlass substrates for PDPsSpecialty glass for display applicationsGlass substrates for display devicesDisplay-related materials• Electronics materials and partsCMP slurryGlass frit and pasteAspherical glass lenses (micro glass)Carboglass™Synthetic quartz glassOptical thin-film products• Chlor-alkali & urethaneRaw materials for vinyl chloride monomer and polymerCaustic sodaUrethane materials• Fluorochemicals & specialty chemicalsFluoropolymers/filmsFluoronated water and oil repellentsPharmaceutical and agrochemical intermediates and active ingredientsIodine-related productsBattery materials• CeramicsVarious refractory materialsFine ceramicsSputtering targets• Logistics/Engineering260.1248.6257.32010201120123002001000(Billion yen)(FY)201020112012100500(Billion yen)(FY)2010201120125003004002001000(Billion yen)(FY)6004005003002001000201020112012(Billion yen)(FY)911.1 billion yen74%North America83.6 billion yen7%Europe229.0 billion yen19%570.9554.4564.6386.5435.3344.177.383.987.0Net sales1,190.0billion yen1 Tafluprost is glaucoma treatment co-developed with Santen Pharmaceutical Co., Ltd.As of the end of December 2012Corporate DataName Asahi Glass Co., Ltd. (Global brand: AGC)Head Office 1-5-1, Marunouchi, Chiyoda-ku, Tokyo 100-8405 JAPANFounded September 8, 1907Incorporated June 1, 1950Capital 90,873 million yenOutstanding stock 1,186,705,905 shares Employees 49,961 (consolidated), 6,374 (non-consolidated)Consolidated Group companies 202 (165 overseas)OperationsGlassChemicals ElectronicsCeramics/Other“Fluon® ETFE Film”Fluoropolymer filmTafluprost1 pharmaceutical and agrochemical intermediates and active ingredients“Lumiflon™” highly weather-resistant fluoropolymer resin for coatingFused cast refractory bricks for glass furnace crowns“THERMOTECT WALL™”high thermal insulation furnace wallsCeramic sputtering targetsCement rotary kiln“Dragontrail™” specialty glass for chemical strengtheningGlass substrates for TFT-LCDsSynthetic quartz glassLow emissivity (Low-E) double glazing unit“Stopray™ Ultra-50 on Clearvision”“UV Verre Premium™” for automotive glass47%29%21%3%Overview of the AGC GroupAGC Report 201348AGC Report 201347Sales and Sales Ratio by RegionJapan/AsiaSales RatioSales TrendsMain Products/Services• Flat glassFloat glassLow-emissivity (Low-E) glassDouble glazing glass for solar control/heat-insulationSafety glassDecorative glassGlass for solar power systems• Automotive glassTempered automotive glassLaminated automotive glass• Display glassGlass substrates for LCD-TFTsGlass substrates for PDPsSpecialty glass for display applicationsGlass substrates for display devicesDisplay-related materials• Electronics materials and partsCMP slurryGlass frit and pasteAspherical glass lenses (micro glass)Carboglass™Synthetic quartz glassOptical thin-film products• Chlor-alkali & urethaneRaw materials for vinyl chloride monomer and polymerCaustic sodaUrethane materials• Fluorochemicals & specialty chemicalsFluoropolymers/filmsFluoronated water and oil repellentsPharmaceutical and agrochemical intermediates and active ingredientsIodine-related productsBattery materials• CeramicsVarious refractory materialsFine ceramicsSputtering targets• Logistics/Engineering260.1248.6257.32010201120123002001000(Billion yen)(FY)201020112012100500(Billion yen)(FY)2010201120125003004002001000(Billion yen)(FY)6004005003002001000201020112012(Billion yen)(FY)911.1 billion yen74%North America83.6 billion yen7%Europe229.0 billion yen19%570.9554.4564.6386.5435.3344.177.383.987.0Net sales1,190.0billion yen1 Tafluprost is glaucoma treatment co-developed with Santen Pharmaceutical Co., Ltd.As of the end of December 2012Corporate DataName Asahi Glass Co., Ltd. (Global brand: AGC)Head Office 1-5-1, Marunouchi, Chiyoda-ku, Tokyo 100-8405 JAPANFounded September 8, 1907Incorporated June 1, 1950Capital 90,873 million yenOutstanding stock 1,186,705,905 shares Employees 49,961 (consolidated), 6,374 (non-consolidated)Consolidated Group companies 202 (165 overseas)OperationsGlassChemicals ElectronicsCeramics/Other“Fluon® ETFE Film”Fluoropolymer filmTafluprost1 pharmaceutical and agrochemical intermediates and active ingredients“Lumiflon™” highly weather-resistant fluoropolymer resin for coatingFused cast refractory bricks for glass furnace crowns“THERMOTECT WALL™”high thermal insulation furnace wallsCeramic sputtering targetsCement rotary kiln“Dragontrail™” specialty glass for chemical strengtheningGlass substrates for TFT-LCDsSynthetic quartz glassLow emissivity (Low-E) double glazing unit“Stopray™ Ultra-50 on Clearvision”“UV Verre Premium™” for automotive glass47%29%21%3%Overview of the AGC GroupAGC Report 201348AGC Report 201347Seingbouse plant (France)Main products:• Fluoronated resin• Fluoronated elastomer • Fluoropolymer films• Fluoronated water and oil repellents• Fluoropolymer resin for coatings • Fluoronated solvents Etc.Glass interposer substratesGlobal Network AGC Glass Products Co., LtdAGC Glass Kenzai Co., Ltd.AGC Okinawa Glass Kenzai Co., Ltd.AGC Amenitech Co., Ltd.Ryugasaki Glass Co., Ltd.AGC Fabritech Co., Ltd.AGC Automotive AMC Co., Ltd.AGC Automotive Window Systems Co., Ltd. Autoglass Co., Ltd.AGC Display Glass Yonezawa Co., Ltd.AGC Electronics Co., Ltd.AGC Techno Glass Co., Ltd.AGC Micro Glass Co., Ltd.AGC Polycarbonate Co., Ltd.Optical Coatings JapanIse Chemicals CorporationKeiyo Monomer Co., Ltd.AGC Si-Tech Co., Ltd.AGC Engineering Co., Ltd.AGC Seimi Chemical Co., Ltd.AGC Coat-Tech Co., Ltd.AGC Polymer Material Co., Ltd.AGC Green-Tech Co., Ltd.AGC Wakasa Chemicals Co., Ltd.AGC Matex Co., Ltd.AGC Filtech Co., Ltd.Hokkaido Soda Co., Ltd.Kashima Chemical Co., Ltd.AGC Ceramics Co., Ltd.AGC Plibrico Co., Ltd.AGC Research Institute, Inc.AGC Insurance Management Co., Ltd.AGC Finance Co., Ltd.AGC Logistics Co., Ltd.AGC Technology Solutions Co., Ltd.Tokai Kogyo Co., Ltd.ThailandAGC Flat Glass (Thailand) Public Co., Ltd.AGC Automotive (Thailand) Co., Ltd.AGC Electronics (Thailand) Co., Ltd.AGC Techno Glass (Thailand) Co., Ltd.AGC Micro Glass (Thailand) Co., Ltd.AGC Chemicals (Thailand) Co., Ltd.AGC Matex (Thailand) Co., Ltd.AGC Technology Solutions (Thailand) Co., Ltd.IndonesiaPT Asahimas Flat Glass TbkPT IWAKI Glass IndonesiaPT Asahimas ChemicalSingaporeAGC Flat Glass Asia Pacific Pte., Ltd.AGC Electronics Singapore Pte. Ltd.AGC Chemicals Asia Pacific Pte. Ltd.AGC Singapore Services Pte. Ltd.PhilippinesAGC Flat Glass Philippines Inc.AGC Automotive Philippines Inc.AGC Philippine Ecozone Management CorporationTaiwanAGC Display Glass Taiwan Co., Ltd.AGC Electronics Taiwan Co., Ltd.ChinaAGC Flat Glass (Dalian) Co., Ltd.AGC Flat Glass (Suzhou) Co., Ltd.AGC Flat Glass Protech (Shenzhen) Co., Ltd.AGC Flat Glass (Hong Kong) Co., Ltd.AGC Automotive China Co., Ltd.AGC Automotive Foshan Co., LtdAGC Glass Substrate (Hong Kong) Co., Ltd.AGC Glass Substrate (Guangdong) Co., Ltd.AGC Display Glass (Kunshan) Co., Ltd.AGC Display Glass (Shenzhen) Co., Ltd.AGC Chemicals Trading (Shanghai) Co., Ltd.Seimi Tongda Lithium Energy Co., Ltd.Zibo Asahi Glass Alumina Materials Co., Ltd.Yixing AGC Ceramics Co., Ltd.Plibrico (Dalian) Industries Co., Ltd.AGC(China)Holdings Co., Ltd.AGC Shanghai Co., Ltd.AGC Technology Solutions (Kunshan) Co., LTD.KoreaHanwook Techno Glass Co., Ltd.Asahi Glass Fine Techno Korea Co., Ltd.Asahi PD Glass Korea Co., Ltd.AGC Display Glass Ochang Co., Ltd.U.S.AAGC Flat Glass North America, Inc.AGC Soda CorporationAGC Automotive Americas Co.AGC Automotive Americas R&D, Inc.AGC Electronics America, Inc.AGC Chemicals Americas, Inc.Woodward Iodine CorporationAGC America, Inc.AGC Capital, Inc.CanadaAGC Flat Glass North America, Ltd.AGC Automotive Canada, Inc.MexicoAGC Automotive Glass Mexico S.A. de C.V.BelgiumAGC Glass Europe S.A.AGC Glass Europe Sales S.A.AGC Automotive Europe S.A.AGC Automotive Belgium S.A.AGC Europe S.A.NetherlandAGC Flat Glass Nederland B.V.U.K.AGC Glass UK Ltd.AGC Chemicals Europe, Ltd.Czech RepublicAGC Flat Glass Czech a.s., clen AGC GroupAGC Automotive Czech a.s.RussiaOJSC AGC Bor GlassworksAGC Flat Glass Klin LLCFranceAGC France SASItalyAGC Flat Glass Italia S.r.lAGC Automotive Italia S.r.lSpainAGC Flat Glass Iberica S.A.GermanyAGC Glass Germany GmbHInterpane Glas Industrie AGHungaryAGC Glass Hungary Ltd.PolandAGC Gdansk Sp. z o.o.TurkeyAGC Otomotiv Adapazari Üretim, Sanayi Ve Ticaret Anonim SirketiNorth AmericaBrazilAGC Glass Brazil, Inc.EuropeJapanAsahi Glass Co., Ltd.AsiaSouth AmericaAGC Asahi Glass Became a 2014 FIFA World Cup™ Branded LicenseeIn BrazilAsahi Glass has signed an agreement to become a branded licensee of the 2014 FIFA World Cup™. Through this license agreement, the Company became the first B-to-B company to market the “Official Licensed Glass Roof of the 2014 FIFA World Cup™ Player Benches.”Asahi Glass has invested a total of 2.1 million dollars in Triton Microtechnologies, Inc., a U.S.-based company. Asahi Glass intends to combine its ultra-thin glass-related technologies with the company’s via-fill technologies in an effort to accelerate the development of next-generation semiconductors that employ glass.Asahi Glass Invests in Triton Microtechnologies to Promote the Development of Cutting-Edge Via-Fill TechnologiesIn the USAAsahi Glass established and commenced opera-tions of a sales office of AGC Chemicals Trading (Shanghai) Co., Ltd., in the city of Guangzhou, Guangdong Province, to provide services tailored to the Chinese market, where demand is expected to grow. The branch will accelerate business expansion for functional chemicals, particularly fluorinated products.A Sales Office for Chemical Products Established in Guangzhou, ChinaIn ChinaAGC Glass Europe and Interpane Glas Industrie AG have entered an alliance with a view to expand their glass manufacturing and processing facilities, as well as mutually enhance each other’s product lineups. Through the alliance, the AGC Group intends to increase its presence in the German flat glass market and improve its glass coating techniques. Establishing a Strategic Alliance with a German Glass Manufacturer in the Glass BusinessIn GermanyNote:As of December 2012.NewsGlassElectronicsChemicalsCeramicsOthersThe AGC Group is expanding its global business by leveraging its extensive networks of companies operating in some 30 countries and regions in Japan, Asia, Europe and America.AGC Report 201350AGC Report 201349Seingbouse plant (France)Main products:• Fluoronated resin• Fluoronated elastomer • Fluoropolymer films• Fluoronated water and oil repellents• Fluoropolymer resin for coatings • Fluoronated solvents Etc.Glass interposer substratesGlobal Network AGC Glass Products Co., LtdAGC Glass Kenzai Co., Ltd.AGC Okinawa Glass Kenzai Co., Ltd.AGC Amenitech Co., Ltd.Ryugasaki Glass Co., Ltd.AGC Fabritech Co., Ltd.AGC Automotive AMC Co., Ltd.AGC Automotive Window Systems Co., Ltd. Autoglass Co., Ltd.AGC Display Glass Yonezawa Co., Ltd.AGC Electronics Co., Ltd.AGC Techno Glass Co., Ltd.AGC Micro Glass Co., Ltd.AGC Polycarbonate Co., Ltd.Optical Coatings JapanIse Chemicals CorporationKeiyo Monomer Co., Ltd.AGC Si-Tech Co., Ltd.AGC Engineering Co., Ltd.AGC Seimi Chemical Co., Ltd.AGC Coat-Tech Co., Ltd.AGC Polymer Material Co., Ltd.AGC Green-Tech Co., Ltd.AGC Wakasa Chemicals Co., Ltd.AGC Matex Co., Ltd.AGC Filtech Co., Ltd.Hokkaido Soda Co., Ltd.Kashima Chemical Co., Ltd.AGC Ceramics Co., Ltd.AGC Plibrico Co., Ltd.AGC Research Institute, Inc.AGC Insurance Management Co., Ltd.AGC Finance Co., Ltd.AGC Logistics Co., Ltd.AGC Technology Solutions Co., Ltd.Tokai Kogyo Co., Ltd.ThailandAGC Flat Glass (Thailand) Public Co., Ltd.AGC Automotive (Thailand) Co., Ltd.AGC Electronics (Thailand) Co., Ltd.AGC Techno Glass (Thailand) Co., Ltd.AGC Micro Glass (Thailand) Co., Ltd.AGC Chemicals (Thailand) Co., Ltd.AGC Matex (Thailand) Co., Ltd.AGC Technology Solutions (Thailand) Co., Ltd.IndonesiaPT Asahimas Flat Glass TbkPT IWAKI Glass IndonesiaPT Asahimas ChemicalSingaporeAGC Flat Glass Asia Pacific Pte., Ltd.AGC Electronics Singapore Pte. Ltd.AGC Chemicals Asia Pacific Pte. Ltd.AGC Singapore Services Pte. Ltd.PhilippinesAGC Flat Glass Philippines Inc.AGC Automotive Philippines Inc.AGC Philippine Ecozone Management CorporationTaiwanAGC Display Glass Taiwan Co., Ltd.AGC Electronics Taiwan Co., Ltd.ChinaAGC Flat Glass (Dalian) Co., Ltd.AGC Flat Glass (Suzhou) Co., Ltd.AGC Flat Glass Protech (Shenzhen) Co., Ltd.AGC Flat Glass (Hong Kong) Co., Ltd.AGC Automotive China Co., Ltd.AGC Automotive Foshan Co., LtdAGC Glass Substrate (Hong Kong) Co., Ltd.AGC Glass Substrate (Guangdong) Co., Ltd.AGC Display Glass (Kunshan) Co., Ltd.AGC Display Glass (Shenzhen) Co., Ltd.AGC Chemicals Trading (Shanghai) Co., Ltd.Seimi Tongda Lithium Energy Co., Ltd.Zibo Asahi Glass Alumina Materials Co., Ltd.Yixing AGC Ceramics Co., Ltd.Plibrico (Dalian) Industries Co., Ltd.AGC(China)Holdings Co., Ltd.AGC Shanghai Co., Ltd.AGC Technology Solutions (Kunshan) Co., LTD.KoreaHanwook Techno Glass Co., Ltd.Asahi Glass Fine Techno Korea Co., Ltd.Asahi PD Glass Korea Co., Ltd.AGC Display Glass Ochang Co., Ltd.U.S.AAGC Flat Glass North America, Inc.AGC Soda CorporationAGC Automotive Americas Co.AGC Automotive Americas R&D, Inc.AGC Electronics America, Inc.AGC Chemicals Americas, Inc.Woodward Iodine CorporationAGC America, Inc.AGC Capital, Inc.CanadaAGC Flat Glass North America, Ltd.AGC Automotive Canada, Inc.MexicoAGC Automotive Glass Mexico S.A. de C.V.BelgiumAGC Glass Europe S.A.AGC Glass Europe Sales S.A.AGC Automotive Europe S.A.AGC Automotive Belgium S.A.AGC Europe S.A.NetherlandAGC Flat Glass Nederland B.V.U.K.AGC Glass UK Ltd.AGC Chemicals Europe, Ltd.Czech RepublicAGC Flat Glass Czech a.s., clen AGC GroupAGC Automotive Czech a.s.RussiaOJSC AGC Bor GlassworksAGC Flat Glass Klin LLCFranceAGC France SASItalyAGC Flat Glass Italia S.r.lAGC Automotive Italia S.r.lSpainAGC Flat Glass Iberica S.A.GermanyAGC Glass Germany GmbHInterpane Glas Industrie AGHungaryAGC Glass Hungary Ltd.PolandAGC Gdansk Sp. z o.o.TurkeyAGC Otomotiv Adapazari Üretim, Sanayi Ve Ticaret Anonim SirketiNorth AmericaBrazilAGC Glass Brazil, Inc.EuropeJapanAsahi Glass Co., Ltd.AsiaSouth AmericaAGC Asahi Glass Became a 2014 FIFA World Cup™ Branded LicenseeIn BrazilAsahi Glass has signed an agreement to become a branded licensee of the 2014 FIFA World Cup™. Through this license agreement, the Company became the first B-to-B company to market the “Official Licensed Glass Roof of the 2014 FIFA World Cup™ Player Benches.”Asahi Glass has invested a total of 2.1 million dollars in Triton Microtechnologies, Inc., a U.S.-based company. Asahi Glass intends to combine its ultra-thin glass-related technologies with the company’s via-fill technologies in an effort to accelerate the development of next-generation semiconductors that employ glass.Asahi Glass Invests in Triton Microtechnologies to Promote the Development of Cutting-Edge Via-Fill TechnologiesIn the USAAsahi Glass established and commenced opera-tions of a sales office of AGC Chemicals Trading (Shanghai) Co., Ltd., in the city of Guangzhou, Guangdong Province, to provide services tailored to the Chinese market, where demand is expected to grow. The branch will accelerate business expansion for functional chemicals, particularly fluorinated products.A Sales Office for Chemical Products Established in Guangzhou, ChinaIn ChinaAGC Glass Europe and Interpane Glas Industrie AG have entered an alliance with a view to expand their glass manufacturing and processing facilities, as well as mutually enhance each other’s product lineups. Through the alliance, the AGC Group intends to increase its presence in the German flat glass market and improve its glass coating techniques. Establishing a Strategic Alliance with a German Glass Manufacturer in the Glass BusinessIn GermanyNote:As of December 2012.NewsGlassElectronicsChemicalsCeramicsOthersThe AGC Group is expanding its global business by leveraging its extensive networks of companies operating in some 30 countries and regions in Japan, Asia, Europe and America.AGC Report 201350AGC Report 20134912345876Kazuhiko IshimuraCEOBoard of DirectorsExecutive OfficersShukichi UmemotoIzumi Tamai (Outside)Shigeru Hikuma (Outside)Kenji Haga (Outside)Corporate AuditorsHistory of AGC GroupProducts & Technologies of AGC GroupAs of March 28, 2013President & CEOYuji NishimiOverall business management (AGC Group Improvement Activities, electronics business and business development)Senior Executive Vice PresidentKei YonamotoBrazil Global ProjectTeam LeaderYoshiaki TamuraOverall business management (Technology); GM of Technology General Division; Deputy leader of AGC Group Improvement ActivitiesExecutive Vice PresidentsSenior Executive OfficersMarehisa IshikoPresident of Glass CompanyJean-François HerisRegional President of Europe, Glass Company; President & CEO of AGC Glass EuropeTakashi FujinoOverall business management (Finance); GM of Office of the PresidentYasumasa NakaoVice President, Technology, Glass CompanyTakuya ShimamuraPresident of Electronics CompanyShinichi KawakamiGM of Human Resources & Administration OfficeTetsuo TatsunoGM of Finance & Control OfficeEisuke YanagisawaGM of LegalTokio MatsuoGM of CSR OfficeAkinobu ShimaoPresident of AGC CeramicsCo., Ltd.Tomoya TakigawaGM of Research Center, Technology General DivisionTakashi ShimboChief Representative of AGC Group for ChinaShinji MiyajiRegional President of North America, Glass CompanyKimikazu IchikawaRegional President of Japan/Asia Pacific, Glass CompanyYoshinori KobayashiGM of Electronics General Div., Electronics CompanyKazuyoshi WatanabeGM of Display Glass General Div., Electronics CompanyYoshinori HiraiGM of Business Development OfficeKihachiro OkamotoVice President, Automotive, Glass CompanyShigekuni InoueGM of Electronic Glass General Div., Electronics CompanyHiroyuki WatanabeGM of Technology Planning Office, Technology General DivisionMasao NemotoPresident of Chemicals CompanyTakayasu IdeGM of Technology Management General Div., Chemicals CompanyTadayuki OiGM of Production Technology Center, Technology General DivisionExecutive OfficersRepresentative DirectorKazuhiko IshimuraDirector (Outside)Appointed in March 2008Member of the Nominating and Compensation CommitteesAdvisor to TDK CorporationOutside Director of Teijin LimitedOutside Corporate Auditor of Nikkei Inc.Hajime SawabeDirector (Outside)Appointed in March 2011Member of the Nominating and Compensation CommitteesDirector and Councilor ofKomatsu Ltd.Outside Director ofTokyo Electron LimitedOutside Director ofNomura Holdings, Inc.Outside Director ofNomura Securities Co., Ltd.Masahiro SakaneDirector (Outside)Appointed in March 2013Member of the Nominating and Compensation CommitteesChairman of the Board ofJapan Tobacco Inc.Hiroshi KimuraEra ofGrowth andExpansion1992• U.S. glassmaker AFG Industries, Inc. acquired.• The “Blue Planet Prize” to honor those who help solve environmental problems created by the Asahi Glass Foundation.1981• Belgian glassmaker Glaverbel S.A. acquired. (photo )1956• Manufacture of automotive glass begun. (photo )• The Indo-Asahi Glass Co., Ltd. established in India.1966• Production of float glass begun.(photo )1990• “CYTOP™”, transparent fluoropolymer, developed.1975• Production of “Asahi Guard™”, fluorinated water and oil repellents, and “Aflon™ COP”, fluorinated resins, begun.• Ion-exchange membrane method for manufacturing caustic soda developed.1980• AZEC System of caustic soda manufacturing using ion-exchange membrane developed.1998• Mass production of a new alkali-free glass for TFT LCDs begun.1954• Cathode Ray Tube (CRT) glass bulb business begun. (photo )1954• Production of double-glazing units (Pairglass™) begun.1961• Diversification into organic chemicals, propylene oxide and propylene glycol production started.1933• Caustic soda production using lime process begun.1925• Shoko Glass Co., Ltd. established in China. (photo )1916• Production of refractories begun at the Amagasaki Plant.1907• Asahi Glass Company founded in Amagasaki, Hyogo Prefecture.(photo )1938• Production of tempered glass and laminated glass begun.1928• Production of ordinary sheet glass using the Fourcault process begun.1917• First production of soda ash using the ammonium method in Japan.1909• Production of Belgian-type hand-blown sheet glass begun. (photo )• The first sheet glass successfully manufactured in Japan.TowardGlobalManagement2006• “Fluon® ETFE Film” selected for the main stadium and the venue for aquatics games at a global sport event in Beijing.2010• Sales of “FONTEX™”, a commercial plastic optical fiber enabling the world’s highest transmission speed, launched.2011• “Dragontrail™”, glass for chemical strengthening, launched. (photo )2013• “An Wizus™”, glass substrates for small to medium-size liquid crystal displays, launched.2012• “UV Verre Premium Cool on™”, tempered glass for automobile doors, launched.2008• The management policy introduced.2007• Group brand unified as “AGC.”• Asahi Glass Company’s 100th anniversary celebrated.2004• The management policy “JIKKO” introduced.2002• Glaverbel made into a wholly owned subsidiary.• The AGC Group Vision formulated.• The Global In-house Company System introduced.2013• The new mid-term management plan commenced.• Architectural and automotive glass production starts in Brazil. (planned)1999• Mass production of “PD200”, glass substrate for plasma display panels (PDPs), begun.The EarlyYearsRepresentative DirectorYuji NishimiRepresentative DirectorYoshiaki TamuraDirectorTakashi Fujino85123476Board of Directors, Corporate Auditors and Executive OfficersMilestonesAGC Report 2013 51AGC Report 2013 5212345876Kazuhiko IshimuraCEOBoard of DirectorsExecutive OfficersShukichi UmemotoIzumi Tamai (Outside)Shigeru Hikuma (Outside)Kenji Haga (Outside)Corporate AuditorsHistory of AGC GroupProducts & Technologies of AGC GroupAs of March 28, 2013President & CEOYuji NishimiOverall business management (AGC Group Improvement Activities, electronics business and business development)Senior Executive Vice PresidentKei YonamotoBrazil Global ProjectTeam LeaderYoshiaki TamuraOverall business management (Technology); GM of Technology General Division; Deputy leader of AGC Group Improvement ActivitiesExecutive Vice PresidentsSenior Executive OfficersMarehisa IshikoPresident of Glass CompanyJean-François HerisRegional President of Europe, Glass Company; President & CEO of AGC Glass EuropeTakashi FujinoOverall business management (Finance); GM of Office of the PresidentYasumasa NakaoVice President, Technology, Glass CompanyTakuya ShimamuraPresident of Electronics CompanyShinichi KawakamiGM of Human Resources & Administration OfficeTetsuo TatsunoGM of Finance & Control OfficeEisuke YanagisawaGM of LegalTokio MatsuoGM of CSR OfficeAkinobu ShimaoPresident of AGC CeramicsCo., Ltd.Tomoya TakigawaGM of Research Center, Technology General DivisionTakashi ShimboChief Representative of AGC Group for ChinaShinji MiyajiRegional President of North America, Glass CompanyKimikazu IchikawaRegional President of Japan/Asia Pacific, Glass CompanyYoshinori KobayashiGM of Electronics General Div., Electronics CompanyKazuyoshi WatanabeGM of Display Glass General Div., Electronics CompanyYoshinori HiraiGM of Business Development OfficeKihachiro OkamotoVice President, Automotive, Glass CompanyShigekuni InoueGM of Electronic Glass General Div., Electronics CompanyHiroyuki WatanabeGM of Technology Planning Office, Technology General DivisionMasao NemotoPresident of Chemicals CompanyTakayasu IdeGM of Technology Management General Div., Chemicals CompanyTadayuki OiGM of Production Technology Center, Technology General DivisionExecutive OfficersRepresentative DirectorKazuhiko IshimuraDirector (Outside)Appointed in March 2008Member of the Nominating and Compensation CommitteesAdvisor to TDK CorporationOutside Director of Teijin LimitedOutside Corporate Auditor of Nikkei Inc.Hajime SawabeDirector (Outside)Appointed in March 2011Member of the Nominating and Compensation CommitteesDirector and Councilor ofKomatsu Ltd.Outside Director ofTokyo Electron LimitedOutside Director ofNomura Holdings, Inc.Outside Director ofNomura Securities Co., Ltd.Masahiro SakaneDirector (Outside)Appointed in March 2013Member of the Nominating and Compensation CommitteesChairman of the Board ofJapan Tobacco Inc.Hiroshi KimuraEra ofGrowth andExpansion1992• U.S. glassmaker AFG Industries, Inc. acquired.• The “Blue Planet Prize” to honor those who help solve environmental problems created by the Asahi Glass Foundation.1981• Belgian glassmaker Glaverbel S.A. acquired. (photo )1956• Manufacture of automotive glass begun. (photo )• The Indo-Asahi Glass Co., Ltd. established in India.1966• Production of float glass begun.(photo )1990• “CYTOP™”, transparent fluoropolymer, developed.1975• Production of “Asahi Guard™”, fluorinated water and oil repellents, and “Aflon™ COP”, fluorinated resins, begun.• Ion-exchange membrane method for manufacturing caustic soda developed.1980• AZEC System of caustic soda manufacturing using ion-exchange membrane developed.1998• Mass production of a new alkali-free glass for TFT LCDs begun.1954• Cathode Ray Tube (CRT) glass bulb business begun. (photo )1954• Production of double-glazing units (Pairglass™) begun.1961• Diversification into organic chemicals, propylene oxide and propylene glycol production started.1933• Caustic soda production using lime process begun.1925• Shoko Glass Co., Ltd. established in China. (photo )1916• Production of refractories begun at the Amagasaki Plant.1907• Asahi Glass Company founded in Amagasaki, Hyogo Prefecture.(photo )1938• Production of tempered glass and laminated glass begun.1928• Production of ordinary sheet glass using the Fourcault process begun.1917• First production of soda ash using the ammonium method in Japan.1909• Production of Belgian-type hand-blown sheet glass begun. (photo )• The first sheet glass successfully manufactured in Japan.TowardGlobalManagement2006• “Fluon® ETFE Film” selected for the main stadium and the venue for aquatics games at a global sport event in Beijing.2010• Sales of “FONTEX™”, a commercial plastic optical fiber enabling the world’s highest transmission speed, launched.2011• “Dragontrail™”, glass for chemical strengthening, launched. (photo )2013• “An Wizus™”, glass substrates for small to medium-size liquid crystal displays, launched.2012• “UV Verre Premium Cool on™”, tempered glass for automobile doors, launched.2008• The management policy introduced.2007• Group brand unified as “AGC.”• Asahi Glass Company’s 100th anniversary celebrated.2004• The management policy “JIKKO” introduced.2002• Glaverbel made into a wholly owned subsidiary.• The AGC Group Vision formulated.• The Global In-house Company System introduced.2013• The new mid-term management plan commenced.• Architectural and automotive glass production starts in Brazil. (planned)1999• Mass production of “PD200”, glass substrate for plasma display panels (PDPs), begun.The EarlyYearsRepresentative DirectorYuji NishimiRepresentative DirectorYoshiaki TamuraDirectorTakashi Fujino85123476Board of Directors, Corporate Auditors and Executive OfficersMilestonesAGC Report 2013 51AGC Report 2013 52URL: http://www.agc-group.com/en/1-5-1, Marunouchi, Chiyoda-ku, Tokyo 100-8405, JAPAN Corporate Communications & Investor Relations OfficeTel: +81-3-3218-5603 Fax: +81-3-3218-5390E-mail: info.ad@agc.com CSR OfficeTel: +81-3-3218-5282 Fax: +81-3-3218-7801E-mail: csr-info@agc.comNon-Financial InformationResources that Deepen Group Communication with StakeholdersFinancial InformationThe AGC Group’s CorporateVision and Business ActivitiesAGC Report 2013(This report)Financial Review(PDF file only)CSR Websitewww.agc.com/english/csr/AGC Group Websitehttp://www.agc-group.com/enProvides information about the AGC Group more widely, timely and in more detail.For Comprehensive Information• ISO 26000: 2010 Guidance on social responsibility• Sustainability Reporting Guidelines Version 3.1 (G3.1), Global Reporting Initiative (GRI)• Environmental Reporting Guidelines (2012), Japanese Ministry of the Environment• Discussion Paper on Integrated Reporting,International Integrated Reporting Council (IIRC)Non-Financial Information Guidelines• Reporting PeriodFiscal 2012 (Jan.–Dec. 2012)Some information includes content from both fiscal 2011 and 2013.• Organizations Covered in the ReportAsahi Glass and its 202 consolidated subsidiaries (Group companies in and outside Japan)• Primary Notation and Report Targets Used in the ReportScope of This ReportJune 2013 (Last date of publication: June 2012)Date of PublicationRegarding Future Assumption, Forecasts and PlansFuture perspectives described in this report are based on the latest information available to the AGC Group at the time of editing this report. Nevertheless, please note that results and consequences may vary with fluctuations in the business environment.Reports the AGC Group’s busi-ness outline and financial infor-mation including consolidated financial statementsReports on the AGC Group’s non-financial data and its vari-ous CSR policies and organiza-tions for promoting CSR-related activitiesCSR InformationSupplement(PDF file only)Provides a comprehensive report on the AGC Group’s efforts to fulfill its social respon-sibilitiesThe AGC GroupThe AGC Group (Japan)Asahi Glass/the CompanyThe AGC Group (Asia)Same as “Organizations Covered in the Report” mentioned above.Group companies in Japan including Asahi Glass Co., Ltd.AGC Asahi Glass Co. Ltd. (on an unconsolidated basis)Group companies in Asia excluding the AGC Group (Japan)Printed on paper made with wood from forest thinning. “Morino Chonai-Kai” (Forest Neighborhood Association)—Supporting sound forest management.AGC Report 2013AGC Report 2013All rights reserved. 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