Web Glossary

[BOD]

BOD stands for Biochemical Oxygen Demand, and refers to the amount of oxygen used by microbes when performing oxidative decomposition on organic matter in the water. Mainly used as a pollution indicator for rivers.

[Biodiversity]

This is a concept referring to the overall differences (variability) seen among living things, and is an extremely broad concept that not only describes the current spatial spread and changes in life, but also includes dynamic changes over time, such as the evolution and extinction of life. Generally speaking, biodiversity is regarded on three levels, namely the "diversity of ecosystems," the "diversity of species" and "genetic diversity."

[Business Continuity Plan(BCP)]

A business continuity plan, or BCP, is a plan that sets out in advance the activities to be carried out under normal circumstances and the methods and measures to be implemented for business continuity in an emergency, so that when a company encounters a natural disaster, major fire, terrorist attack, or other such calamity, it can minimize damage to business assets, and ensure the continuation of its core business or quickly restore things to normal.

[Carbon Offsetting]

A carbon offsetting is a concept where greenhouse gases such as CO2, the generation of which cannot be avoided in our daily lives or economic activity, are directly or indirectly offset by activities to reduce greenhouse gas emissions by a comparable amount elsewhere (such as through tree planting, forest preservation, or clean energy projects).

[COD]

COD stands for Chemical Oxygen Demand, and refers to the amount of oxygen required when chemically oxidizing pollutants in the water. Mainly used as a pollution indicator for areas of ocean water, lakes and marshes.

[Corporate Ethics Hotline]

An internal reporting and consultation hotline available to all employees of the Citizen Group, including part-time and temporary employees. The hotline aims to prevent any corporate misconduct and take appropriate measures in the workplace at an early stage.

[Corporate Governance]

Corporate governance is the concept of a company system which aims to prevent wrongdoing or maintain and ensure appropriate business activities on the part of a company. It is a system to audit the legality of the execution of duties by company directors.

[Compliance]

While compliance can be directly interpreted to mean compliance with laws, the concept of compliance not only refers to laws and regulations but also includes observing social norms and corporate ethics (morals).

[CSR]

CSR stands for Corporate Social Responsibility and refers to undertaking initiatives in a comprehensive manner and contributing to the sustainable development of society from not only economic (financial) but environmental and social aspects as well (the so-called "triple bottom line").

[CSR Procurement]

This is a practice where a company or government using the level of corporate social responsibility (CSR) initiatives being undertaken by a supplier as judgment criteria in the procurement of goods or services. CSR procurement is an even broader concept than green procurement, which takes into account the environmental load of products and the status of environmental management at companies; the criteria for CSR procurement includes aspects such as compliance, human rights, labor environment and health & safety. Along with the globalization of business activities, Western investors, NPOs and consumers are not only concerned with CSR activities of a company itself, but are also increasingly interested in the overall supply chain, particularly issues relating to the environment, human rights, and labor conditions in developing nations.

[Diversity]

While generally referred to simply as "diversity," this is actually a shortening of "Diversity & Inclusion," and means the acceptance of diversity. Diversity in organizational management means accepting, acknowledging and utilizing the multifaceted differences that people possess, including gender, race, regional origins, and disabilities.

[Eco Mark]

An environmental label issued by the Japan Environment Association and affixed to those products (out of the various goods and services available) that place a minimal burden on the environment throughout their lifecycle, from production to disposal, and which are recognized as beneficial to environmental conservation.

[Endangered Species]

Endangered species are species of plants and animals listed in Red Data Books issued by prefectures and the Ministry of the Environment whose numbers have fallen to extremely low levels and which are in danger of extinction.

[Environmental Accounting]

A mechanism that helps companies and other entities seeking sustainable development to monitor (measure) and analyze the costs of environmental conservation in their business activities and the effects those activities have yielded in as quantitative a manner as possible (expressed in units of currency or quantity), disclose their environmental information and manage their activities with the aim of maintaining a sound relationship with society, and taking steps to protect the environmental in an efficient and effective way.

[Environmental Accounting Book]

A booklet that allows the amount of energy consumed in daily activities, including electricity, water, gasoline, and so on, to be calculated by conversion to its equivalent weight in CO2. The booklet aims to reduce CO2 emissions and encourage a shift to lifestyles conscious of conserving the natural environment by clearly showing the amount of energy consumed in concrete terms.

[Environmental Activity Cost]

This is one of the components of environmental accounting and refers to the amount invested or costs incurred for initiatives which bring about or contribute to preventing, curbing, avoiding or eliminating the effects of or restoring damage caused by burdens placed on the environment.

[Environmental Efficiency or Eco-Efficiency]

This is an index for evaluating environmental activities which incorporates the viewpoint of the efficiency in environmental conservation, and is calculated by dividing the value of a produced good or service by its associated burden on the environment. Improving environmental efficiency is regarded as an important factor in achieving a sustainable society.

[Environmentally Friendly Products]

Products produced with reduced environmental load in mind across the entire product lifecycle from manufacturing to disposal.

[Environmental Management]

Refers to the management undertaken by a company to achieve sustainable development while remaining environmentally friendly. It is a new approach to management that changes the conventional attitude that environmental measures are only a negative factor driving up costs and states that interacting with the environment in a smart way leads to the sustainable development of a company.

[Environmental Risk]

The possibility that environmental burdens due to human activities will, via the environment, have harmful effects on people's health or ecosystems.

[FSC]

FSC stands for Forest Stewardship Council. The FSC was established in 1993 by environmental groups, forestry operators, logging companies, groups representing indigenous people and other entities with the aim of promoting socially beneficial and economically sustainable forestry management that is appropriate from the standpoint of environmental conservation. The council is headquartered in Bonn, Germany.

[General Waste]

Waste other than industrial waste as defined by Japan's Waste Management and Public Cleansing Act. In addition to the household waste produced by general households, the term includes non-industrial waste put out by business sites, known as general waste from business activities.

[Global Warming]

Global warming is the phenomena of rising global temperatures due to the increase in greenhouse gases such as CO2 in the atmosphere (which trap heat from the sun and have the effect of warming the earth's surface) associated with human economic activity and other factors, coupled with the reduced capacity to absorb CO2 due to the destruction of the world's forests.

[Global Warming Potential]

A measure to express the degree of warming effect possessed by each greenhouse gas expressed as a factor of the greenhouse effect due to the release of CO2, whose global warming potential (GWP) is standardized to 1. The global warming potential is provided for in the enforcement order of the Act on Promotion of Global Warming Countermeasures. Specifically, the GWP figures include CH4 (methane): 21; N2O (nitrous oxide): 310; HFC-23 (trifluoromethanesulfonate): 11,700; PFC-14 (Perfluoromethane): 6,500; and SF6 (sulfur hexafluoride): 23,900.

[Greenhouse Gases]

Gases in the atmosphere such as CO2 or methane traps heat from the sun on the earth, and this has the effect of heating the earth's surface. These gases are known as greenhouse gases. Greenhouse gases are responsible for keeping the global average air temperature at around 15°C. If these gases were not present, that temperature would drop to -18°C. Since the industrial revolution, the concentration of greenhouse gases in the atmosphere has risen due to human activities, and the "greenhouse effect" is thought to be accelerating. Under the Kyoto Protocol, the greenhouse gases to be targeted for reduction in order to prevent global warming were established as CO2, CH4 (methane), N2O (nitrous oxide), HFCs (Hydrofluorocarbons) PFCs (perfluorocarbons) and SF6 (sulfur hexafluoride).

[Green Procurement]

Green Procurement is the act of selecting those products and services supplied by the market with the lowest possible burden on the environment on a preferential basis for purchase and procurement.

[Industrial Waste]

Industrial waste refers to twenty types of waste among that produced in association with business activities, including cinders, sludge, waste oil, waste acid, waste alkali, and waste plastic, as well as imported waste. Appropriate disposal standards and other regulations have been established to govern the transportation and disposal of industrial waste.

[Internal Control]

Internal control generally refers to the establishment of predefined standards and procedures for each task within an organization such as a company, and the management, monitoring and assurance of those tasks in accordance with established standards and procedures, to ensure that the organization is operated in a sound, effective and efficient manner free from unlawful conduct, dishonesty, mistakes, or errors. A series of such mechanisms is referred to as an internal control system.

[Internal Reporting System]

An internal reporting system is a system in place at a company whereby a person who learns of the occurrence or possibility of a compliance violation such as unlawful or improper conduct can directly report the violation to a service able to handle such situations in an appropriate manner. These services go by various names such as "helpline," "hotline," or "corporate ethics hotline."

[IR]

IR stands for Investor Relations, and is a form of PR activity aimed at shareholders and investors. The aim of IR is to allow the formulation of a fair and appropriate share price and have shareholders retain shares based on a long-term standpoint by having shareholders and investors contemplate the future prospects of the company through disclosures of company business performance and financial information and the release of the company's management strategy.

[ISO14001]

A standard for environmental management. The mechanisms (systems) to systematically monitor, evaluate and make improvements to the environmental effects brought about by business activities such as production, selling and recycling is assessed by a third party organization (certification body), with those business sites certified as conforming to the standards issued a certificate of registration.

[J-SOX]

J-SOX refers to a law established in Japan and fashioned after the United States' Sarbanes-Oxley Act (SOX Act) to prevent accounting scandals and compliance deficiencies. J-SOX requires listed companies and their consolidated subsidiaries to improve their accounting audit systems and strengthen internal control at companies. While commonly known as the "Japanese version of the SOX Act," J-SOX actually refers to part of the provisions of the Financial Instruments and Exchange Act, which is a drastic revision of the Securities and Exchange Act.

[LED]

An LED or Light Emitting Diode is a semiconductor device that emits light when voltage is applied in the forward direction. LEDs are expected to be the fourth generation of lighting attained by humankind after phosphors.

[Lifecycle]

Lifecycle describes the entire life of a certain product, starting with the mining of the resources to produce it, and including the manufacturing of materials, the production of the product itself, its distribution and use, and ending with its disposal.

[Modern Master Craftsperson]

A program where once a year, the Minister of Health, Labour and Welfare honors those with remarkable skills recognized as the best craftsperson in their chosen field as modern master craftsperson. The program aims to elevate the status of craftspeople, raise skill levels, and increase the momentum whereby young people, according to the aptitude they display, will become skilled workers with a sense of pride and hope and devote themselves to their chosen profession.

[NOx (Nitrogen Oxides)]

A generic term for nitrogen-based oxides such as NO (nitric oxide) and NO2 (nitrogen dioxide). NOx gases are produced when burning fuels that contain nitrogen as well as due to the oxidization of nitrogen in the air during combustion. NOx gases are subject to restriction under the Air Pollution Control Act as harmful substances.

[PDCA Cycle]

The PDCA cycle is a system for achieving higher objectives and goals through the cumulative repetition of a procedure comprising (1) Formulation of policies and plans (Plan); (2) Implementation and operation (Do); (3) Evaluation and analysis (Check); and (4) Countermeasures (Action).

[Pollution Load Levy]

A levy collected from parties such as those who establish facilities that produce soot and smoke (paid in proportion to the amount of sulfur oxide (SOx) produced from heavy oils used for fuel) to cover compensation benefits and other necessary costs to compensate and provide prompt and fair protection with regard to health hazards due to significant air pollution brought about in association with the business activities of the party in concerned. The levy is stipulated in the Act on Compensation, etc. of Pollution-Related Health Damage.

[PRTR (System)]

The PRTR system is an abbreviation of the Pollutant Release and Transfer Register system, a system based in law (the Act on Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment and Promotion of Improvements to the Management Thereof) where business operators self-monitor the amount of government-designated chemical substances released into the environment and the amounts of waste containing such substances transferred outside business locations and notify the national government of those amounts via prefectural governments, and where the national government tallies and publishes the released and transferred amounts based on the notification data from business operators and other statistics.

[REACH Regulation]

An EU regulation concerning the registration, evaluation and authorization of chemicals. Businesses that handle chemical substances at or above a certain volume are obligated to register the type of substances concerned and information regarding their associated hazards. The regulation took effect on June 1, 2007.

[Recycling Rate]

The volume of discharged substance recycled divided by the volume produced, expressed as a percentage (%).

[Risk Management]

A technique in business management to ascertain the risks which may jeopardize business activities in advance and avoid or decrease losses should such risks be actualized.

[RoHS directive]

An EU (European Union) directive that restricts the use of certain hazardous substances in electrical and electronic equipment. The six restricted substances are lead, cadmium, mercury, hexavalent chromium, and the bromine series flame retardants PBB and PBDE. Going into effect in July 2006, the regulations were established with the aim of lessening the environmental burden when products are put in landfill or incinerated after use and to prevent recycled materials from being contaminated with harmful substances.

[Stakeholders]

Stakeholders are all the people and organizations that have involvement in the business activities of a company, and include customers, shareholders, investors, the local community, business partners (suppliers and affiliates), employees, and so on.

[Statutory Employment Rate]

In accordance with the Act on Employment Promotion etc. of Persons with Disabilities, private companies, the national government and local governments must each employ an equivalent percentage (the statutory employment rate) of persons with physical or intellectual disabilities. For private companies of a size equivalent to 56 or more regular employees, the statutory employment rate is 1.8%.

[Sustainability]

Sustainability is literally the capacity to endure. When we refer to "corporate sustainability," we mean that "a company currently possesses the ability to generate a profit and continue to supply its customers with production into the future." In addition to the financial aspect described above, corporate sustainability also includes an environmental aspect (activities to protect the environment) and social aspects (activities directed at employees, social contribution activities). Sustainability and corporate social responsibility (CSR) have an inseparable relationship with one another, and by engaging in business activities with sustainability in mind, companies are able to fulfill their corporate social responsibilities, and thereby enhance their sustainability.

[SOx (Sulfur Oxides)]

SOx is a generic name for sulfur oxides such as SO2 (sulfur dioxide) and SO3 (sulfur trioxide). Sulfur oxides are produced when the sulfur content in fuel is oxidized during the combustion of fossil fuels such as petroleum oil and coal. Since sulfur oxides adversely impact human health and cause damage to living environments, they subject to restriction under the Air Pollution Control Act.

[SRI]

Socially Responsible Investment refers to investment that calls on the senior management of companies to engage in CSR-conscious management through the exercising of one's position and rights as a shareholder.