Accident Risks from Fires, Explosions, and Chemical Spills
First written in FY2020. 2 of 5 entries say "Mitigated", first in FY2023-Q1. Latest entry: FY2023-Q3.
The whole theme swung hardest in 2021: 1 of 8 companies on the "Worse" side.
3 other companies' latest entry also says "Mitigated".
- FY2023-Q3MitigatedAnnual report
「In the second quarter, the lockdown in Shanghai, China, and the temporary suspension of operations at the consolidated subsidiary 東邦化学（上海）有限公司 due to an explosion and fire at a nearby company, … In the third quarter, … the negative factors described above that arose at overseas subsidiaries in the second quarter were largely resolved.」
The temporary shutdown of operations at the Shanghai subsidiary caused by an explosion and fire at a nearby company occurred in the second quarter, but its impact was described as largely resolved by the third quarter. - FY2023-Q2RestatedAnnual report
「In the second quarter, the temporary suspension of operations at 東邦化学（上海）有限公司 due to an explosion and fire at a nearby company also became a negative factor for earnings.」
The temporary shutdown of operations at the Shanghai subsidiary and its impact on earnings resulting from a nearby explosion and fire at another company were again identified as negative factors for the quarter. - FY2023-Q1MitigatedAnnual report
「The consolidated subsidiary 東邦化学（上海）有限公司 had suspended operations since 18 June 2022 due to the effects of the explosion and fire at 中国石化上海化工股份有限公司, which occurred in the early hours of that day. Following the resumption of utility supplies from Shanghai Petrochemical on 23 June 2022, it resumed operations on 27 June 2022.」
The suspension of utility supplies following the explosion and fire at Shanghai Petrochemical and the resulting shutdown of operations at the Shanghai subsidiary actually occurred, but operations resumed on 27 June. - FY2022MaterialisedAnnual report
「Although there were no personal injuries at 東邦化学（上海）有限公司, extensive damage occurred, including damage to the exterior walls, shutters and windowpanes of buildings, as well as partial ceiling collapses.」
The explosion and fire at a nearby Shanghai Petrochemical facility damaged buildings and other property at the Shanghai subsidiary, and the suspension of utility supplies also resulted in a shutdown of operations. The risk of accidents such as fires and explosions materialized as actual physical and operational impacts at a Group site. - FY2020First statedAnnual report
「However, if an accident such as a fire, explosion or chemical spill were to occur at a Group plant and have a significant impact on the Group's business activities and the local community, the Group's operating results and other aspects of its performance could be affected by a loss of public trust, costs incurred in responding to the accident, including compensation, and lost opportunities resulting from a suspension of production, leading to lower sales and higher costs.」
Separate from the risk of interruptions to manufacturing processes caused by natural disasters, the company newly organized the risks of reputational damage, compensation claims and production stoppages associated with fires, explosions and chemical spills at chemical plants. Countermeasures include regular inspections, safety training, and enhanced safety equipment and fire-fighting facilities.