Corporate Social Responsibility (CSR) / Environmental and Social Report 2014

Relations with Customers

Taiyo Nippon Sanso Major Club Partners

In April 2005, we launched an official dealer system, dubbed the Taiyo Nippon Sanso Major Club, with the aim of responding accurately and effectively to the needs of end users across Japan. In addition to providing official dealers (“partner companies”) with competitive products, we leverage our position to provide a wide range of services, including domestic and overseas sales support, technical assistance and management consultation.

The Taiyo Nippon Sanso Major Club—comprising the core Partners’ Club and two functional subgroups, the LP Gas Club and the Medical Club—boasts a robust national network that is instrumental in ensuring our products are delivered safely and reliably to end users. For each of the constituent clubs, we offer seminars and training sessions on operational safety and other themes. Partner companies also continue to promote a variety of ongoing independent skill-building initiatives aimed at enhancing customer satisfaction and improving their own performance as responsible corporate citizens.

Taiyo Nippon Sanso Major Club Partners

Safety Management

Recognizing that we have a responsibility to ensure a safe and stable supply of industrial gases, we have created a safety management system headed by the president, which underpins a meticulous approach to safety management.

Guided by the president’s policy of implementing decisive, practical measures to ensure the safety of our operations, in line with our belief that selling gas is commensurate with selling safety and peace of mind, we promote voluntary safety management initiatives and conduct management inspections and safety and environmental audits on a periodic basis, thereby ensuring the effectiveness of our safety management efforts.

At parent company- and affiliated company-operated sites with production functions, we have established a safety commendation program that recognizes outstanding achievements attributable to voluntary safety management initiatives.

To ensure our ability to respond promptly and effectively in the event of gas leaks or other emergencies during the transport or use by customers of specialty gases, we have specified 55 sites across Japan as emergency response depots, each of which is equipped with materials and equipment crucial to mitigating damage from such an incident. Training and drills for emergency response personnel are conducted at least once annually, thereby ensuring a high level of preparedness at all times. At present, we have approximately 270 registered emergency personnel.

To ensure the safe use of our industrial gases, we offer customers safety seminars that provide information on the properties, dangers and safe handling of various products.

Taiyo Nippon Sanso's Corporate Governance Structure

1 Specified sites are coexisting sites—primarily production and R&D facilities—that are affiliated directly with divisions and for which safety management must be unified.

2 Affiliated companies include gas production companies managed by Taiyo Nippon Sanso, Group logistics companies and principal subcontracted logistics companies, and domestic affiliated companies.

Relations with Shareholders and Investors

Ensuring Fair Returns to Shareholders

Having positioned the provision of fair returns to shareholders as a key management responsibility, we strive to maintain stable dividends, while at the same time ensuring our dividend payout ratio fairly reflects our business performance. In line with the strategic policies set forth in our new medium-term business plan, we will continue working to enhance our performance, as well as to raise the payout ratio during the three years of the plan, which runs from fiscal 2015 through fiscal 2017.

Relations with Employees

Enhancing Internal Communications

In Japan, we publish Best Scrum, a bimonthly in-house newsletter. In addition to corporate information designed to promote awareness of senior management’s policies, share operating results and enhance understanding of Group operations, Best Scrum features information on the activities of individual divisions and Group companies and on important new technologies. With the aim of giving Best Scrum a personal touch, employees across the country are encouraged to submit articles and comments for inclusion to local communications managers.

We also produce Konnichiwa, a seasonal English-language newsletter for Taiyo Nippon Sanso Group companies overseas. Each issue of Konnichiwa includes a section introducing employees in various countries who have made notable contributions to the Group’s development and growth, each of which is asked to convey a short message to his or her colleagues around the world.

Taiyo Nippon Sanso Major Club Partners

Relations with Society

Support for Nonprofit Organization Providing Vocational Training

Support for Nonprofit Organization Providing Vocational Training

 

U.S.-based Group company Matheson Tri-Gas, Inc., supports one of the core initiatives of SkillsUSA, a nonprofit organization that provides teachers, students and schools with vocational training opportunities. This annual undertaking involves staging local- and state-level skill competitions that culminate in the SkillsUSA Championships, a national event held in Kansas City, Missouri. Matheson Tri-Gas has contributed human resources and products to SkillsUSA for nearly two decades and is the main sponsor of the welding skills competition portion of the SkillsUSA Championships.

Working with the Boy Scouts of America

Working with the Boy Scouts of America

 

Matheson Tri-Gas works extensively with the Boy Scouts of America. One of the merit badges that boy scouts in the United States can earn is for welding. Matheson Tri-Gas provides workshop space and equipment for boy scouts going for this badge, which involves learning about potential hazards in welding, proper protective clothing and equipment for welders and different welding and cutting equipment. In addition, Matheson Tri-Gas employees serve as instructors for practical training, which is also a merit badge requirement.