CSR Report 2016
G-TEKT Corporation

Technology for the world, and for the future.

G-TEKT endeavors to contribute to
the creation of a better global future.

Corporate Philosophy

R e spe ct H um an
Di gn it yTechnol ogi cal
I nnov at i on

SoundManagem ent

Code of Conduct• To commit to self-development with mutual trust andaffection• To pursue cutting-edge technology and offer the bestproduct quality at a competitive and affordable price• To contribute to the society self-initiatedly withintelligence and dexterity

Management Vision
To become a company that contributes to a low-carbon
society by integrating cutting-edge technology with highquality products at an affordable price, while serving
customers around the globe to their fullest satisfaction.

1

I nt ro d uct io n

CONTENTS

Safety and Health
Safety and Health Policies, Evacuation Drills, etc.

14

Quality

Introduction
Corporate Philosophy / Code of Conduct / Management Vision

01

Table of Contents / Editorial Policy

02

Message from the President

03

Company Overview / Main Components / Global Network

05

Fundamental Policies on CSR

06

Feature Article

Identification of Material Issues

07

Manufacturing of Environmentally-friendly Products

09

Corporate Governance16

Human Rights / Labor Practices
Fundamental Policies on Human Resource Development /Human Resource Development System / Diversity, etc.

17

Environmental Philosophy / Environmental Policies /Our Employees’ VOICE

18

Environmental Management Systems and Structures

19

Environmental Road Map / Material Flow

20

Data

21

Environmental Improvement Efforts

22

Biodiversity Efforts

23

Social Contribution
11

Social and Community Contribution Activities /Overseas Efforts, etc.

25

Third-Party Opinion

Information Management
Objectives, Fundamental Policies and Education on Information Security

15

Customer Satisfaction Improvement Policies / Purchasing /CSR Procurement Policies / Our Employees’ VOICE

Environment

Corporate Data

Fundamental Policies on Corporate Governance /Our Employees’ VOICE
Risk Management / Communication with Shareholders and Investors

Policies on Quality, Quality Assurance System, etc.

13

Third-Party Opinion

26

Editorial Policy

Purpose of this Report
We are issuing our CSR Report to inform our stakeholders of our
CSR activities based on our “G-TEKT Philosophy” aimed at realizing
a sustainable society. The purpose of the report is to deepen yourunderstanding of our CSR activities through the disclosure of suchnon-financial information.
Our CSR Report defines our own CSR theme that is of significance to our business activities and provides a compilation ofreports on our efforts related to the theme. Positioning the Report as
an important tool for communication with our stakeholders, we will
strive for its further improvement going forward.

Period Covered
FY2015 (April 1, 2015 to March 31, 2016)
However, some past efforts as well as the most recent activities
are also included.

Reference Guidelines
N ISO26000
N GRI (Global Reporting Initiative) “Sustainability Reporting Guidelines”
N United Nations Global Compact
N Ministry of Environment “Environmental Reporting Guidelines”

Contact Information
Legal Department
G-TEKT Corporation
Omiya JP Building 18F
1-11-20, Sakuragi-cho, Omiya-ku, Saitama City, Saitama Prefecture
330-0854 Japan
Phone: +81-48-646-3400 (main line)

Scope
The Report provides information primarily on our activities within
Japan and includes information on efforts by our overseas
subsidiaries.
Release Schedule
June 2016 (Next issue scheduled for June 2017)2

Message from the President

Seeking to Realize a Sustainable Society
Since its launch as a new company in April

but has also been urged to develop: self-driving

2011, G-TEKT has set its Management Visioncars for realizing the future mobility system; traffic

to “become a company that contributes to a

network information systems; and eco-friendly

low-carbon society by integrating cutting-edgecars including the electrification of power-traintechnology with high quality products at an af-

systems, as represented by electric vehicles (EVs)fordable price, while serving customers aroundand fuel-cell vehicles (FCVs).

the globe to their fullest satisfaction.” By strengthening the link between our businesses and CSR

3Under such circumstances, G-TEKT will execute innovation in three fields.

activities, we have been endeavoring to improve

These three fields are: “technology innovation,”

our corporate value in financial and social terms

which creates new value by anticipating chang-and engaging in activities to meet the expecta-

es in the needs of the future mobility system;

tions of all of our stakeholders including custom-“sales innovation,” which is aimed at delivering

ers, society, shareholders and employees.

more superior products to customers around the

In recent years, the automobile industry sur-world; and “human resources innovation,” which,rounding G-TEKT has not only been experiencing

above all else, involves the development of hu-

increasingly fierce competition on a global scale

man resources for supporting the aforementioned

Mes s ag e fr o m t he P r es id ent

2020 Vision G4-20

G4-20

To aim to be a global leading expert manufacturer of parts forautomotive body and transmission by pursuing cutting-edge
technology that conforms strictly to safety and environmental(Twenty)requirements

Genba(Work Floor)
N Creation of G-TEKT global standard
N Establishment of production site
optimal for each region

Green(Environment / Safety / Social contribution)
N Deployment of an eco-friendly
and safety conscious business

Innovative technologies

Global(Global)Grow up(Grow)N Establishment of the mostaffordable pricing strategies foreach region
N Enhancing the global management

N Upgrading of core technologies andacceleration of technological innovation
N Creation of global human resources

Action requirements … Speed & Communication + Challenge

innovations. G-TEKT will further pursue sustain-

human resources that would assist in the sus-able and strong growth by promoting these inno-

tained growth of G-TEKT focusing on people

vations on a medium- and long-term basis.

through such system reforms that would lead toEspecially in the area of personnel affairs, inthe development of an environment in which ourorder to transform the personnel system into one

employees can fully demonstrate their respectivethat enables G-TEKT to grow together with its

capabilities and truly feel happy at work.

human resources, the existing personnel system

I would like to take this opportunity to ask forand human resource development system will

your support as we continue our efforts to con-be revamped under the motto of “enjoyable andtribute to the realization of a sustainable society

busy, on common grounds” in addition to con-as a company expected to have a presence in 50

ventional CSR activities from the sixth fiscal year

years time, and even 100 years time, through ouronwards, with the aim to: (1) develop human re-

CSR activities based on dialogues and “joint-cre-sources that will create value in the next era; andation” of products with our stakeholders.

(2) create an organizational culture in which everyone can grow together and play an active role.
We have started engaging in the development of

A p ri l 2016

Naohiro Takao, President4

Co r p o r at e D at a

corporate data

Corporate Data

Company Overview

Main Components

CompanyName

G-TEKT Corporation

FoundedApril 1, 1947

N Auto Body Frame Components
Front inside

Windshield lower

Rear panel

Dashboard upper

Established

November 4, 1953

Capital4,656,227,715 yen

Representative

Naohiro Takao, ‘President/ President &Chief Executive Officer’Lines ofBusiness

Manufacturing and sales of auto body
frame components, transmission parts,
stamping dies/weld equipment, etc.

Number of
Employees

7,684 (Consolidated), 1,189 (Japan)(As of March 31, 2016)

Center pillar

Front inside sill

Front floor center tunnel

Dashboard lower

N Transmission components

FY ended March FY ended March FY ended March
31, 2014
31, 2015
31, 2016

Sales

1,815

(Hundred million yen)

1,938

トルコンインナー トルコンアウター

2,207

プライマリ
ピストン

ドラムインナー

プライマリ
シリンダー

FY ended March FY ended March FY ended March
31, 2014
31, 2015
31, 2016

Ordinary
Income139(Hundred million yen)90

ドラムアッシー

114
クラッチドラムクラッチドラム キャリーアッシー

クラッチハブ◀ A/T Components(AutomaticTransmission)

ピストン

セカンダリ
クラッチ

セカンダリ
シリンダー

Global Network

EuropeNorth
America

China

3
1

4

plantsplantsR&D
facility

8
1

Japan

4
1

plantsR&D
facilityplantsR&D
facility

Percentage of Sales by Segment

Asia

6

South America

3.8%

China

14.3%

plants

Japan

22.7%

Asia

Europe

5

1

plant

17.2%
5.1%

South
America

North America

36.9%◀ CVT Components(Continuously Variable
Transmission)

G-TEKT corporate social responsibility

G-TEKT’s CSR
Fundamental Policies on CSR
As our moral and social responsibilities increase, the Company will achieve sustainable growth
together with society through CSR activities and become a company for which there are highexpectations.
G-TEKT’s Responsibilities to Be Fulfilled in Response to High Social Expectations

4 Basic Domains

Provide good quality
products from a safe
and comfortable environment
Respect human resources, pay regard to humanrights, and improve thework environment
Contribute to theconservation of the global
environment as well as tolocal communities

Subdivided into 7 CSR themes

Engage in fair andtransparent businessactivities by enhancing
corporate governance

ThemesCSR

Corporate
Governance

We will strive to increase the transparency of ourbusiness activities, while proactively addressing
various matters and disclosing information.

Information
Management

We will establish a trustworthy corporate culture bystrengthening our security management system.

Safety and Health

We will establish a safe and comfortable work
environment.

Quality

We will continually provide reliable products thatsatisfy customer needs.

Human Rights /Labor Practices

We will respect the individuality of our employees
and strive to create a fair and equitable workplacethat provides job satisfaction.

Environment

We will give utmost priority to the conservation of the
global environment and strive to achieve a
low-carbon society.

Social Contribution

We will make social contributions that can be passed
on to the next generation through coexistence withthe local communities.

Relationships with Stakeholders
In order to become a trustworthy company for which our stakeholders, including customers, employees, clients, local communities, shareholders and investors, continuously
hold high expectations, we have established "Our Code of Conduct" as the code of conduct to be followed by our employees in an effort to ensure that each employee acts withfull awareness as a member of society and a member of a company constituting a partof the automobile industry.

Customers

Society

Shareholders
andinvestors

Employees
Environment

SafetyQuality

Basic Stance towards Stakeholders
We will remain a trustworthy partner of our customers, to whom we deliver our products,
by providing safe and reliable products.

Local
communities

Clients

Customers

Employees

Clients

We will remain a trustworthy partner of our customers, towhom we deliver our products, by providing the desired products in the desired quantities at the desired time.

Based on the principle of respecting human dignity, we will
endeavor to establish a safe, secure and lively workplace thatprovides each employee with job satisfaction and does not
permit harassment of any kind.

We will conduct business in a fair and reasonable manner andestablish cooperative relationships with our clients throughmutual respect, recognizing them as partners indispensable toour production activities.

Local communities

Shareholders and investors

We will proactively seek to integrate and harmonize with thelocal residents through such means as participation in social
contribution activities and seek to establish favorable relationships based on mutual understanding.

We will strive to enhance our corporate value and achieve anappropriate share price by actively establishing opportunities
for dialogues with our shareholders and investors based on
our commitment to prompt and fair disclosure.

Identification of Material Issues
Material aspects as of 2016 were identified based on the view that G-TEKT should engage in business activities while understanding the social impact of its business activities, managing the possibility of having such an impact, and controlling the impact
itself. We will organize and enhance the method of managing material issues that have been identified, with the aim of integrating
it into the process of formulating the next new medium-term plan.

6

F eat ure A rt icle

Identification of Material Issues
Identifying Material Issues
In recent years, there has been a growing demand among various stakeholders for the disclosure offinancial and non-financial information. G-TEKT believes that it should engage in business activities while
understanding the social impact of its business activities, managing the possibility of having such an impact,
and controlling the impact itself.
Important aspects in FY2016 were identified while seeking our stakeholders’ opinions in consideration ofsuch factors as the characteristics of G-TEKT Group’ businesses and the regions in which the Group
operates. We will organize and enhance the method of managing material issues that have been identified,with the aim of integrating it into the process of formulating the next new medium-term plan.

STEP

1

STEP

Detection of social issues
Identify a wide range of CSR issues
and sort the issues from the stakeholders’ point of view based on social roles

On the basis of issues that have already beenaddressed by G-TEKT, we utilized ISO26000,
Global Reporting Initiative (GRI) and United
Nations Global Compact, etc. for generalissues, in-house interviews, benchmarks ofother companies and industry guidelines forindustry issues, and information gatheredfrom stakeholders, etc. for G-TEKT issues,and verified these issues with the respective
social issues stemming from them.
As a result, we prepared a list of social issues
by adding issues pointed out in such external
assessments to the issues that have alreadybeen addressed.
■ Identifying Material Issues

2

Issues based on G-TEKT’s
business strategies
Find CSR-related issues from theManagement Principles, businessstrategies, etc.

We found CSR-related issues from G-TEKTGroup’s Management Principles, Management
Vision, management policies, etc. and added
them to the list of social issues.
Management Principles
Corporate Philosophy

Code of Conduct

Respect Human Dignity

To commit to self-development with mutual trust and affection

Technological Innovation

To pursue cutting-edge technology and offer the best product quality
at a competitive and affordable priceSound Management

To contribute to the society self-initiatedly with intelligence anddexterity

Management Vision

To become a company that contributes to a low-carbon society by integrating cutting-edge technology with high quality products at an affordable price, while serving customers
around the globe to their fullest satisfaction.

Source of information
G-TEKT
issuesIn-house interviews

Industry issues

In-house interviews
Benchmarks
Industry guidelines

2020 Vision G4-20

G4-20

To aim to be a global leading expert manufacturer of parts forautomotive body and transmission by pursuing cutting-edge
technology that conforms strictly to safety and environmental(Twenty)requirements

G enba(Work Floor)

Green∙ Creation of G-TEKT global standard∙ Establishment of production site
optimal for each region(Environment / Safety / Social contribution)∙ Deployment of an eco-friendly
and safety conscious business

Innovative technologies

Global(Global)General issues

7

ISO26000
GRI·····

Grow up(Grow)∙ Establishment of the mostaffordable pricing strategies foreach region∙ Enhancing the global management∙ Upgrading of core technologies andacceleration of technological innovation∙ Creation of global human resources

Action requirements … Speed & Communication + ChallengeProcess of Identifying Material CSR Issues
STEP

STEP

STEP

STEP

STEP

Detection of social
issuesIssues based on
G-TEKT’s businessstrategies

Examination ofmateriality

Confirmation of
appropriateness ofmaterial issues

Identification ofmaterial issues

1

2

3

4

5

Review

STEP

3

STEP

Examination of materiality

4

Examine the materiality of issues
revealed from stakeholders’ expectations, G-TEKT’s management strategies, etc.

On a grid in which the vertical axis represents
materiality for stakeholders and the horizontal
axis denotes materiality for G-TEKT Group, we
mapped the issues stated on the list of social
issues from STEP 2, and assessed issues thatare deemed highly material from the viewpointof both parties for the purpose of identifying
material issues.
Issues that are material for G-TEKTGroup (high-priority challenges)
are in this zone
High

Confirmation of appropriateness of material issues
Perform a final check on material
issues that have been sorted out

The process of identifying material CSR issuesof G-TEKT Group and the revealed issues
were assessed by outside experts anddiscussed by the management team.

STEP

5

Identification of material
issuesMateriality for stakeholders

Material issues that have been
identified■ Enhancement of corporate governance■ Development of environmentally-friendly products and technologies■ Human resource development
Materiality for G-TEKTHigh■ Environmental management

8Feature Article

Manufacturing of Environmentally-friendly
Products
Manufacturing of environmentally-friendly products
The automobile industry surrounding G-TEKT has been urged to develop: self-driving cars for realizing the future mobility system; traffic network information systems; and eco-friendly cars including theelectrification of power-train systems, as represented by electric vehicles (EVs) and fuel-cell vehicles(FCVs).
Under these circumstances, G-TEKT has been endeavoring day by day to provide high-performance
automotive bodies with minimum weight at a low cost so that environmentally-friendly products canbe utilized broadly at competitive prices.

Structural approach (one-vehicle analysis technology)
Proposal of lightweight, high-rigidity automotive bodies
Weight reduction is sought after in making automotive bodies: CO2 emissions need to be reducedby making the body itself lighter in weight, and in the case of environmentally-friendly EVs and FCVs
which are equipped with heavy batteries, the body weight needs to be reduced even further.
G-TEKT proposes optimal automotive bodies as a product of their expertise in lightweight bodies gained through the internalization of key technologies and research on competitors’ products,
backed by a performance guarantee based on full-car simulations.
■ Flow of proposal of high-performance automotive bodies with minimum weight at a low cost

Targets
Weight reduction
Collision/strength/rigidity
performance
Cost reduction

Prepare a specificproposal for each model

Verify performance bystructural analysis

Propose products
backed by performance
guarantee

Internalization of Key Technologies
In order to achieve lightweight, high-rigidity bodies, G-TEKT is pushing forward with the internalization of key technologies for white bodies by working on “white body application technology”, “materials
evolution technology”, “joining technology” and “molding technology” fields.

White body application
technology

Materials upgrade
technology

Localized quenching

Ultra high-tensile steel
Aluminum
CFRP (ribbed components /floor pan)
Plastics
Other low-density
materials

Coupling flange connection
Partial difference in thickness
Integral molding,
expansion in scale

9Lightweight,
high-rigidity body

Joining technology

Molding technology

Adhesives
Rivets, swages
Short-pitch spot welding
Irregular shape laser bead
(C type, W type)
2D continuous joining
3D continuous joining

Cold: Press molding, forging
Hot: Press molding, forging
cast molding,blow molding
Warm: Press moldingPerformance guarantee based on full-car simulations
Research on competitors’ products
We thoroughly conduct research on the latest vehicle models that are drawing attention to makecomparisons with competitors and determine trends in the industry and new products, in an effort toimprove G-TEKT’s technological capabilities and gain expertise in lightweight bodies.

Performance guarantee based on full-car simulations
We evaluate performance and make optimal proposals based on the omnidirectional collision andrigidity analysis results using models that reflect the expertise we have gained through the internalization of key technologies and the research on competitors’ products.
Front collision

Side collision

Rear-end collision

Energy balance

Energy balance

Energy balance

Torsional rigidity
Model forcollision
purposes
Conversion
Rigidity analysis
model

Torsional rigidity
analysisResource-saving for mold equipment and product materials
Resource-saving for mold equipment and product materials
We are engaged in ongoing activities to realize environmentally-friendly production sites where resources are conserved through yield improvement (scrap reduction) by the reduction of mold materials based on multi-cavity molds for components and streamlined processes, as well as the modification of processing methods.
Reduction of materials ofmold equipment

Example of multi-cavity molds

Mold materials reducedby multi-cavity molds

Reduction of materials of
products
Draw-formed panel

Form-molded panel

Example of yield improvement

Materials reduced by
15% as a result ofchange in processing
method10

C o r p o r at e Go v er nancecorporate governanceCorporate GovernanceWe strive to proactively address various matters and disclose information in order to increase the transparency ofour business activities.

Fundamental Policies on Corporate GovernanceOur corporate governance structure, including the internal
control system, is as shown in the figure below.
M Corporate governance structure

General Meeting of Shareholders
Election of Directors andCorporate Auditors

Business
Administration
Structure

G-TEKT acknowledges the importance of management as acompany with social responsibility in order to become a company in which customers, employees, shareholders, investors
and society place high expectations. We also recognize that
one of the top-priority management issues is to develop an
organization and framework to ensure transparent, speedy,
fair and bold decision-making in consideration of risks, and tobuild a relationship based on trust with all stakeholders.
We will seek to attain sustained growth and improve
corporate value in the medium and long run by implementing corporate governance more effectively and making
ongoing improvement efforts.

Corporate Governance Structure

ReportBoard of Accounting
Auditors
AuditorBoard of Directors
G-TEKT’s
Philosophy

Formulation of
fundamental policies ofinternal control

Corporate Governance Code

Report andsubmission

Auditing

Auditing

President
Realization

Deployment of policies

Business
Auditing
OfficeReport and submission

Report and Deployment
submissionof policies

Compliance
Sub-Committee

Our Code of
Conduct

Deployment,
promotion, andproposal ofmeasures

Risk Management
Sub-Committee

Deployment,
Reporting andpromotion, andinformation
proposal of
sharingmeasures

Corporate
Ethics
OfficeReport andsubmission

Reporting andinformation
sharing

Proposals

Deploymentof policies

Business Auditing

Corporate Governance Committee

Replies

Our Corporate Governance Code has been establishedwith the aim of realizing “aggressive governance”. In lightof the spirit of the Code, the Board of Directors has passed
a resolution for “G-TEKT’s Fundamental Policies on Corporate Governance”, which set out our basic approach,framework and implementation policy regarding corporate
governance, for the purpose of establishing a structure ofgovernance that would be most effective for the management of G-TEKT with the aim of attaining sustained growthand improving medium/long-term corporate value, as
disclosed in the Corporate Governance Report.

Internal Control System for Business Execution

Management Meeting

Head offices, factories, overseas subsidiaries Self-examination

To view our Corporate Governance Report, please check the following link:
URL

http://www.g-tekt.jp/company/pdf/governance_report.pdf

Compliance
Since we have the highest respect for compliance, we endeavor to act conscien信頼を確law, internal regulation, and any othertiously at all times in compliance with every
かな
もの
にす
るた
めに
rule as a matter of social norm. Looking at compliancefrom theperspective of meeting the expectations of our stakeholders,
we have established “Our Codeof Conduct” as the code to beわたfollowed by each employee so as
行 動し た ち の指針
to act with high ethical standards,
and we are ensuring that ouremployees are familiar with theCode. In addition to activities that
promote the spread and establishment of compliance, we will
engage in ongoing improvement
to prevent and/or promptly address scandals as well as ensurecompliance, as we strive to raise“Our Code of Conduct”
the level of compliance further.
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とき
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違反 たちの ります 針 に 触3433
取締役・監査役選任
報告
。社
「
れて
して
う。
常識
32
経
も
企業市民として地域や社会に根ざした企業であるために会■効

わたしたちの行動指針

G-TEKTフィロソフィー“Corporate Governance Report”

601.i

ndd

1

営
管
理
機
構

取締役会

G-TEKT
フィロソフィー

内部統制
基本方針
策定

具
体
化

方針
展開

報告・
上申

施策展開・
推進・提言

報告・上程

業務監査室

方針
展開

報告・
上申

リスクマネジメント
小委員会

報告・ 施策展開・
情報共有 推進・提言

報告・
情報共有

わたしたちの
行動指針

各本部・各工場、各海外現地法人

企業倫理
改善提案
窓口

回
答

業
務
監
査

提
案

自
己
検
証

G-TEKTフィロソフィーに基づく現場の業務執行の適正性を確保するため『、わたしたちの行動指針』を定めている
ほ か『、 コ ー ポ レ ー ト ・ ガ バ ナ ン ス 委 員 会 』や『 コ ン プ ラ イ
アンス小委員会、リスクマネジメント小委員会』を組織化しています。

11

官公庁との関係自立した企業として、官公庁と健全な関係を保つために
わたしは、公務員等との健全かつ適切な関係を保ち、贈賄行
為は行いません。

いな
し、 いない が社
規
い様
判断 会計監査人
か常 会の常 範」は問い監査役会
わたしは、企業活動を通じて、社会の一員として社会貢献活々時
かけ に
迷っ に注意 識とか 代と共 な ケース
動へ積極的に参加します。
てく
た場
し
け
に
ださ
合は なけれ 離れて 変化し と 遭
い。
、わ
ばな
いな
ます 遇
監
たし情報管理いり。
査たち ません か、法
お客様や取引先からの情報を適切に管理するために
律に
。
の良
識を
わたしは、企業活動を通じて知り得た情報を適切に管理すると自分
自身
共に、社内規程等に則り、インサイダー取引は行いません。
にコーポレート・ガバナンス委員会

コンプライアンス
小委員会

反社会的勢力の排除

健全な経済活動と社会の発展のために
わたしは、市民社会の秩序を乱したり、安全を脅かしたりする
恐れのある反社会的勢力には、毅然とした態度で接し、不当要求には一切応じないと共に、取引の防止や解消に努めます。

コミュニケーション

監査

経営会議

執
行
の
内
部
統
制
シ
ス
テ
ム

取引先と公正で健全な関係を保つために
わたしは、条件を公平に比較し、公正で合理的な方法で取引を行い、社会常識の範囲を超える接待や贈物を送ったり受取った
りしません。

社会との融合と調和を図るために
わたしは、社会とのコミュニケーションを大切にすると共に、
地域社会からの苦情に速やかに対処します。

報告・上程

代表取締役社長

方針展開

取引

時間管理

安全衛生

明るく元気で若々しい職場を保つために
わたしは、予定時間内に仕事を完結するように努め、時間を大切にします。

安全で快適に過ごすために
わたしは、労働災害の撲滅と衛生的な職場づくりに積極的に取り組みます。

報告義務

ハラスメント2011
透明性の高い企業であるために生き生きとした職場であるためにわたしは、法律、関係法令に違反した行為または社会規範の範2014 年10月
わたしは、職場におけるセクシャルハラスメント、パワーハラス
１
年２
囲を超える行為を発見した場合、速やかに上司ならびに企業倫
月１ 日 発行理改善提案窓口に報告いたします。
メントなどのいかなるハラスメントも許しません。
公平

日改

公平な企業であるためにわたしは、すべての出会いに感謝し、出会う人の人権を尊重し、思いやりいたわり、人に優しく平等の精神をもって行動します。

プライバシー保護

個人のプライバシーを尊重する企業であるためにわたしは、官公庁等からの正当な申請があったときを除き、本人の承諾なしにプライバシー情報の開示は行いません。

定

グローバル

真のグローバル企業となるために
わたしは、関係諸外国の政治、行政、法令、慣習、文化、宗20教、生活様式等を尊重します。
14/0
1/14
17:59
:05

署名：

C o r p o r at e Go v er nanceRisk Management
We are striving to identify, analyze, and appropriately control thevarious risks surrounding our business in order to ensure soundexecution of our business activities. Although the risks related
to our business operations are diversifying and becoming
more difficult to manage, we are promoting risk management
activities by establishing a Risk Management Sub-Committee
under the Corporate Governance Committee for the purposeof ensuring the appropriate monitoring of risk situations,company-wide measures regarding risk management issues,and horizontal deployment of measures.
Recently, we have formulated a business continuity plan
(BCP) for each plant in Japan based on a large-scale disaster(e.g., earthquake) scenario and made other such preparations
for speedy recovery in the unlikely event of such disaster.

Communication with Shareholders and Investors
As regards disclosure to shareholders and investors, we are conducting
disclosure operations and IR activities on a daily basis with a commitment to promptness and fairness.
Further, in the belief that it is important for us to communicate proactively with our shareholders and investors in order to deepen theirunderstanding of G-TEKT as a company, we organize company information sessions for individual investors, plant visits for shareholders andother events, in addition to the shareholders’ reception at the general
meeting of shareholders, financial results briefings for institutional investors and individual IR visits, in order to provide opportunities for the top
management to converse in person with the shareholders and investors.
Additionally, we update our home page in a timely manner, issue shareholder newsletters and send out other information in an effort to further deepen our shareholders’ andinvestors’ understanding of
G-TEKT’s business activities,
while studying our evaluation
obtained primarily throughshareholder surveys and ourshare price information as
we seek to achieve the ideal
state as a company.

A plant visit for shareholders

IR website

Our Employees’

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Shareholder Newsletter

Aiming to Further Enhance the Risk
Management Structure
Risk Management Sub-Committee
Tomohiko Soda Secretariat,
Legal Department
G-TEKT is promoting the establishment of a company-wide risk management structure, having established the “Risk Management Sub-Committee”, which is a risk management organization that cuts across boundaries
within the entire company. The Sub-Committee also addresses significant
risks that may put the company’s survival at stake as an issue to be tackled. In the previous fiscal year, we not only formulated a business continuity plan (BCP) at each of our business locations in Japan and reviewed
our risk management structure in the event of disaster, but also worked on
drawing up a risk map by country where G-TEKT Group has a presence,and once again detected business risks surrounding G-TEKT.
More measures will be implemented and further refinements will bemade to the structure that we have built, to help create an even stronger
risk management structure.

12

I nfo rm at io n Manag em ent

information management

Information Management
We will establish a trustworthy corporate culture by strengthening our security management system.

Objectives of Information Security
By establishing security policies as fundamental rules for preventing information leakage, we aim to enhance the awareness of
G-TEKT employees worldwide on thoroughly protecting our information assets, and to establish information security systems
and structures capable of adapting to changes and trends over time.

Fundamental Policies on Information Security
The fundamental policies for protecting the Company’s information assets shall be set as follows:• All actions shall be taken with the understanding of the risks of information leakage.
• G-TEKT employees worldwide shall manage information and prevent information leakage under the same security policies
regardless of the location or the technologies in use.
• Cases of information leakage and other risk information shall be shared worldwide, reflected in the security policies, andused to prevent the occurrence or recurrence of information leakage at G-TEKT.
• The approach as set forth in the security policies shall be observed when establishing a new system or structure relating to
information management or processing.
• Changes in the social environment shall be addressed expeditiously and measures shall be taken in anticipation of futureneeds.
• The security policies shall be reviewed and revised constantly.

Education on Information Security
Confidential information of our clients and our own company, personal information of our employees, and various
other information that must not be divulged to the outside
world exist in vast amounts in the course of our business
operations. Since it is believed that the leakage and othermismanagement of information are basically largely attributable to a decline in employee awareness on information
security, we regularly educate our employees on information security in order to prevent information leakage. As
regards the method of education, employees read throughand indoctrinate the “Ten Commandments of Information
Management,” which summarize the gist of the security
policies.

13

Ten Commandments of Information Management

Safet y and Healt hsafety and health law

Safety and Health
We will establish a safe and comfortable work environment for all who work at G-TEKT.

Safety and Health Policies◼ Organization Chart of Central Safety and Health Committee
Central Safety and HealthCommittee

Since safety and health activities form the foundation of corporate management, we will aim toachieve a work place that we can be proud of bymanaging corporate activities in terms of safety
and hygiene to minimize the impact on the safety
and health of both the people working at G-TEKT
and those of the local communities.
1. E fforts shall be made to further manage safety andhealth in compliance with the relevant safety andhealth laws and regulations, and internal standards.
2. The Company shall assess risks to define the danger
factors in the workplace and determine the priority of relevant measures for the progression from an “accident-free”
to a safe and comfortable “danger-free” workplace.
3. T he Company shall establish communication, notonly with all its employees but also with the cooperating manufacturers and other parties concerned,in order to conduct safety and health-related activities with the participation of all parties.
4. The Company shall strive to raise awareness on safety
through the education and training of its employees.
5. The Company shall appropriately allocate management
resources to the execution of safety and health-related
activities to ensure effective and continuous improvement.

Chairperson
2 Vice-chairpersons

General Secretariat
General Manager, General Affairs Department

Omiya
Headquarters

C&C
Tochigi

Saitama
Plant

HamuraPlant 1/2/3
HamuraOffice

Gunma
Plant

Tochigi
Plant

Shiga
Plant

Health Committee

Health Committee

Safety and
Health Committee

Safety and
Health Committee

Safety and
Health Committee

Safety and
Health Committee

Safety and
Health Committee

Evacuation Drills
In preparation for fires and large earthquakes, we regularly
conduct evacuation drills at each of our business locations
in order to raise awareness of fire and disaster prevention
for injury prevention and the protection of our employees’
lives. A series of drills that start from initial fire extinguishingefforts and reporting of the fire to evacuation are conducted in partnership with the local fire department in preparation for emergency situations. We also conduct first aid
drills using AED concurrently and have emergency rations
in stock for those who are unable to return their homes incase of a disaster.

Employee Safety Training
First aid and evacuation drills

We hold a “Safety Convention” each year in July to reflect
on industrial, traffic and other accidents of the past, while
concurrently seeking to raise awareness on achieving an
accident-free and incident-free work environment.
Further, in order to allow our employees to maintain ahigh level of awareness on accident and incident prevention at all times as they engage in their daily work, we share
information with them on accidents at other business locations as well as other companies in the industry.

Employees in a training session

Safe Driving Initiatives for Forklifts
Many forklifts are being used to transport products in thepremises of our plants. In the unlikely event of an accident
involving a forklift, the accident may result in a fatality. For
this reason, we have introduced a unique in-house driving
license system in which workers who have a certificate forcompleting the forklift operator training course are given an
annual examination, in an effort to make them perform theirtasks with more advanced skills and greater awareness ofsafe driving. Workers are also
required to check for any damage to the forklift body uponinspection at the start of eachbusiness day to make themmore conscious of safe driving.
Safe driving initiative for forklifts

14Qualit yquality

Quality
We will continue to provide reliable products that satisfy customer needs.

Policies on Quality

G-TEKT Circle

The Company shall create and provide products thatdelight and inspire customers, placing the highest possible
quality at the core of its management principles.

The G-TEKT Group voluntarily and actively conducts
activities geared towards education in small groups for thecontinuous management and improvement of the quality
mainly of products, services, and work.

Quality Assurance System
We have established the “1 assurance system, 1 manual”
rule at all 19 G-TEKT locations in order to produce high-quality products that bring about customer satisfaction. Further,with each business location following this rule, horizontal
deployment of the quality assurance system is rendered
possible, thereby allowing the system to extend to all locations and contributing to the quality assurance not only of
the production activities but also of distribution and logistics.
M Quality Management System Based on International Standard ISO/TS 16949
Quality Assurance Manager(TS / Manager)

China 3 locations(54 circles)
Approximately 400 people

G-TEM

WAPAC

Japan
(80 circles)
Approximately 900 people

CKS

G-TIP

G-TTC
G-TEC
G-TIM

North America 8 locations(23 circles)
Approximately 80 people

G-TEKT
APAC
G-TEC2TGB

Asia 5 locations(16 circles)
Approximately 200 people

G-TAC
JIC
ATA

JEC
G-NAC
JSC

G-MEX
G-ONE
South America 1 location(24 circles)
Approximately 150 people

G-KTB

G-TEKT Circle World Conference
Every year in autumn, the circles selected from allover the world gather together in Japan for the
G-TEKT World Conference. Examples of improvements achieved are shared worldwide to foster
international human resources.

Quality Manager (TS / Manager)
Top Management
President

Acquisition of ISO/TS 16949 Certification

Quality AssuranceManager
Directors of Technical Division, Sales Division,
Business Administration Division,
Overseas Business Division,
Purchasing Division and Quality Assurance Division

Director,
Production Division

Europe 3 locations(1 circle)
Approximately 5 people

Plant
Manager

Plant
Manager

Plant
Manager

Plant
Manager

Assistant Plant
Manager

Assistant Plant
Manager

Assistant Plant
Manager

Assistant Plant
Manager

General Manager,
Quality Assurance Department

Shiga Plant

Saitama Plant,
Hamura Plant

Gunma
Plant

Tochigi
Plant

Business Support Office

We have established a quality management system based on
the ISO/TS 16949 requirements in order to achieve a systemfor providing products that satisfy the quality requirementsof our customers. Further, having
promoted the establishment of aquality management system at
our locations worldwide in accordance with the ISO/TS 16949
standard ever since our founding,we have seen 16 of our locationsacquire this ISO certification todate, after the addition of twocertified locations in FY2015.

Quality Improvement Efforts
M Quality Assurance System

Customer Requirements∙ We gather information on a customer’s new models

1and formulate a plan mainly in terms of newtechnologies and quality assurance.
∙ We propose improvement and cost reduction ideas
in response to the information on new models
received from the customer and “jointly create” aproduct with the customer.

2∙ We mainly look into investment in facilities andStrategy1Strategy

6

Quality
information5

Massproduction

2

Quality
ManualSystem(QMS)

Planning

3

equipment, designing, productivity, and newtechnologies based on customer requirements, andconduct internal evaluations for the production of
an affordable and high-quality product.

5

Mass
production

Designing

4

Production
preparation

15

Planning

4

Production
preparation

3

Designing∙ Various departments formulate facility, quality andother management plans and make preparations,and we conduct design reviews to ensure that thematters determined in the planning stage are being
executed.

6

Quality
information∙ We prepare, verify and evaluate the dedicatedfacilities and equipment for the product by making
stamping dies and setting up weld lines inaccordance with the plan, and producing
prototypes. Each item is inspected one by one forverification of soundness as a product.

∙ We assess whether the numerical goals set in theplanning stage were achieved through mass
production from the perspective of quality, cost,and delivery.
∙ The quality of the product is checked, andmaintenance and inspection of the facilities andequipment are performed without fail.

∙ Quality-related information is integrated for quality

improvement. The information is also fed back to
the planning stage for the next model in order toprevent quality issues.

Qualit y
Improvement of product quality

Customer Satisfaction Improvement Policies
PFMEA(Process failure modeand effects analysis)

Verification and improvement ofvariances in the productCollection and reflection of
information on past defects
and failures

Manufacturability
study

Molding simulation using CAE

DR

Feedback of mass production
issues for subsequent models(Designreview)

Process and system audits

Market research
Customercomments

Improved customer satisfaction

Advanced product quality planning
Quality data management
and analyses

Quality policies / Target management

Enhancement of quality assurance

Purchasing / CSR Procurement Policies
We will raise awareness on CSR procurement involving
the use of supplier status regarding efforts on complianceand eco-friendliness as well as human rights and labor
environment as a criterion for doing business, and ask our
suppliers to share in our approach of making products in an
eco-friendly manner in compliance with laws and regulations.

Activity Guidelines
1. Formulate the CSR procurement policies and guidelines
2. Investigate the current status of the supplier
3. Propose to the supplier and implement corrective and/or improvement measures
4. Conduct audits of the supplier

Publication of G-TEKT’s Supplier CSR Guidelines
It is becoming important to engage in CSR activities covering the entire supply chain,including compliance with laws and regulations, respecting human rights, occupational safety and quality—not just environmental problems. While we have been making
CSR efforts with suppliers to date, we established “G-TEKT’s Supplier CSR Guidelines” in April 2016, in order to further clarify GTEKT’s CSR approach and share it ata deeper level. We will continue making efforts to enhance our supply chain into the
future, with the aim of identifying and resolving issues in the supply chain.
New Year’s reception for clients

Communication with Suppliers
In order to beat the tough environment as “Team G-TEKT”,
we are endeavoring to enhance cost competitiveness, safety and quality by creating opportunities to share information

Our Employees’

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with clients at all times. As part of communication with ourclients, we also hold a convivial gathering with our clients every year, in which G-TEKT’s policies are explained to them.

Serving as a Bridge between Japanand Overseas for Quality Assurance
Assurance Section, Quality Assurance DepartYumi Sasae Quality
ment, Quality Assurance Division
Having been assigned to the Quality Assurance Department since joining
G-TEKT, I have been in charge of dealing primarily with overseas business locations while making use of my proficiency in English. I am also
engaged in the task of promptly acquiring quality information worldwide,
sharing information with each business location in real time, and tallying
the information with respect to each business location on a monthly basis,
thereby providing feedback to the next model planning stage. I also prepare educational materials for quality-related work, QC circles, etc. andimplement them at all domestic and overseas business locations every
month. While communicating with overseas business locations is toughin some aspects due to such factors as the time difference, I am making
daily efforts to serve as a bridge that helps bring about quality assurance
and improvement in Japan and overseas.

16

H um an Rig ht s /Lab o r P ract ices

Human Rights / Labor Practices

Human Rights / Labor Practices
We will apply the principle of “respect(ing) human dignity” as stated in our corporate philosophy not only to ourrelationship with all of our employees but also to that with the people and companies we work with, and strive tocreate a fair and equitable workplace that provides job satisfaction.

Fundamental Policies on Human
Resource Development

Global Basic Education (Overseas Training)

1.	The Company shall develop human resources fit for a
global leading expert manufacturer of parts for automotive body and transmission through the development of
employee capabilities, with a view to achieving the ideal
pool of human resources.
2.	Employees shall have the enthusiasm and the attitude oftaking the initiative to learn and think on their own, andwe shall proactively support the growth of each employee.
3.	Foster the “culture of learning” and the “culture of nurturing” through systemized job rotation in addition to
the departmental education consisting of rank-based
education, OJT at the workplace, OFF-JT training, andvoluntary education, and thereby establish the culture ofprioritizing human resource development.

Human Resource Development System
G-TEKT has established a human resource development
system consisting of rank-by-rank training sessions conducted in stages and its signature global basic education,in addition to training sessions for new employees held in
production and technology departments with the view to“develop human resources that will create value in the nextera”, OJT for personnel which is conducted in the department to which they are assigned and OFF-JT training. Also,
this system fosters personnel capable of totally-optimized
manufacturing by implementing job rotation in a planned
manner whereby employees gain expert knowledge while
understanding the overall picture of auto body frame components production.

G-TEKT, whose basic policy is to carry out production
locally outside Japan, has established business locationsin 11 countries and engages in manufacturing on a global
scale. In order to foster personnel who can play an activerole in such a business environment, G-TEKT has createdan overseas training program to nurture a global mindset
from early stages. This program combines language study
at an overseas language school with practical training at
an overseas business location so that employees will learn
languages, cultures and business customs, spread harmony with local staff at overseas business locations, and build
the foundations for playing an active role on a global scale.

Diversity
In the belief that diversity is the source of innovation, we
consider it important to view the differences in sex, nationality, work history, age, personality, values and other external/internal aspects as the “individuality of that person” andrespect them as such. We will continue to gather diverse
talents and competence to address the diverse customer
needs in the global market.

Action Plan based on Act of Promotion of Women’sParticipation and Advancement in the Workplace

In order to become a “truly global company”, G-TEKT ismaking enhancement efforts in the area of people who
support the enterprise by treating it as a key management
issue. In Japan, where women’s participation and advancement is regarded as one of our priority issues, ourprincipal initiatives are “hiring more women”, “enhancing
female training” and “implementing continual employment
and working style reform”.

■ Human Resource Development Program

Management-level
staff

Training of executive candidates
Training of senior management-level staff

Planned/job rotation
Rank-by-rank training

Mid-level staff

Overseas training
Junior staff

Careerdevelopment

17

Training in first year of joining G-TEKT
Collective training of new employees

Training in second year of joining G-TEKTSpecialized practical training

Self-reporting system
Human resource development at department level

OJT/OFF-JT by field of specialization

Env iro nm ent

Environmental

Environment
We will give utmost priority to the conservation of the global environment and strive to achieve a low-carbon society.

Environmental Philosophy

The Company places the highest priority on the conservation of the global
environment and local environments. As a member of the society responsible
for passing on the green Earth to the next generation, it shall strive to both
engage in environmentally considerate business activities and help conserve
the global environment under the slogan, “The Earth is our shared resource”.

Environmental Policies
1 	The Company shall assess the environmental impact of all its business activities, volun-

tarily formulate improvement plans, and actively work on environmental conservation.

2 	The Company shall comply with related environmental laws and regulations and otherrequirements and establish its own management standards to prevent environmental pollution.

3 	The Company shall define purposes, set goals and formulate implementation plans for its

environmental protection activities, and reduce its environmental burden by engaging inongoing improvement, and conduct business in harmony with the environment. Further,
the Company shall review and revise the purposes, goals and plans as necessary.

4 	The Company shall ensure all employees and all people working at the Company areaware of and understand its environmental policies by providing them with environmental
education and training activities.

5 	The Company shall disclose its environmental information to the general public. The Com-pany shall conduct activities aimed at achieving a deeper level of communication with thecommunity and society at large and actively cooperate in community- or society-based
environmental conservation activities.

Our Employees’

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C
E

Environmentally-friendly Sustainable
Manufacturing
Management Section,
Kentaro Noma Environmental
Production Division
Food, water, climate stability and other benefits we enjoy as we live on
the Earth that are derived from the ecosystem in which diverse organisms
interact with each other are referred to as “ecosystem services”. Since
these ecosystem services are also utilized in manufacturing (businessactivities), we are engaging in environmental activities through day-to-day
production activities in pursuit of a sustainable society, where such services will still be available in the future.

18

Env iro nm ent

Environmental Management System across G-TEKTG-TEKT considers the global environmental issue to be a
problem of the highest priority that should be addressedby a company and has been working to acquire the ISO
14001 environmental management system (EMS) certification since 1998 in Japan. Each plant is making ongoing
efforts to promote environmental compliance and improvement activities on an ISO 14001 EMS Environmental Committee basis with the respective Plant Manager
serving concurrently as the Chief Environmental Manager.
The Company has established the Central Environmental

Promotion Committee as an upper-level organization of theplants and two additional business locations, specificallythe Head Office and C&C Tochigi, to manage matters related to company-wide global environmental improvement
activities.
The “World Environmental Safety Conference”, which
was established in June 2014, is also meeting regularly
in an effort to strengthen our environmental management
worldwide as well as to share information with each Director of each overseas division serving as a person-in-charge.

G-TEKT Domestic Environmental Management Structure

ISO 14001 Certification Acquisition Status
Domestic Site

World Environmental Safety Conference

Tochigi Plant

Central Environmental Promotion Committee

Hamura Plant 1/2

Environmental Management Promotion Manager (Deputy Director, Production Division)

April 1999

Hamura Office

General Secretariat
Environmental Committeesof the Four Plants

Environmental Committee of
the Two Business Locations

Chief Manager (Plant Manager)

Chief Manager (Director)

Environmental Manager

Environmental Manager

Shiga Plant

April 1999

Gunma Plant

December 2004

Secretariat of theBusiness Location

Environmental Committee
Members

December 1998

Saitama Plant

Chief Environmental Manager (Director, Production Division)

Secretariat of
the Plant

Acquisition Date

ISO 14001 Registration
Certificate

Environmental Committee
Members

Saitama Plant
Hamura Plant 1/2
World Environmental Safety Conference

World Environmental Safety Conference
North America

China
Europe
G-TEM

APAC

JIC

WAPAC

JSC
ATA

CKS
Japan

G-TAC

Asia

Saitama Plant

G-NAC

Shiga Plant

G-TEC

G-MEX

Gunma Plant

G-TTC

G-ONE

Tochigi Plant

JEC

TGB

Hamura Plant

G-TIP

C&C Tochigi

G-TIM

Head Office

G-KTB

Japan Environmental Safety Conference

Chairman

Chief Environmental Manager

Chairman President & Corporate Officer

North America Environmental Safety Conference

Chairman

Chief Operating Officer for Regional Operations (North America)

South America Environmental Safety Conference

Chairman

Chief Operating Officer for Regional Operations (South America)

Europe Environmental Safety Conference

Chairman

Chief Operating Officer of Regional Operations (Europe)

Secretariat, Central Environmental Promotion Committee

Asia Environmental Safety Conference

Chairman

Chief Operating Officer for Regional Operations (Asia)

Secretariat, Central Safety and Health Committee

China Environmental Safety Conference

Chairman

Chief Operating Officer for Regional Operations (China)

Corporate Planning OfficeSecretariat

Regions

World Environmental Safety Conference

Acting Chairman Chief Environmental Manager

19

South America

Hamura OfficeEnv iro nm ent

G-TEKT Environmental Road Map
Fundamental Environmental Philosophy: Realizing the idea of “The Earth is our shared resource”
We are establishing environmental goals and engaging in ongoing improvement activities pursuant to environmental activity
plans designed to achieve the goals.
[2020 Vision G4-20]
Green (Environment / Safety / Social contribution)
Deployment of an eco-friendly and safety conscious business[High-Priority Corporate Goal]
Reduction of environmental burden and environmental risks
Area

Production

Description

Target/Actual

Reduction of greenhouses gas (GHG) emission
per unit of sales

TargetImprove by 1% (from 2013)

Improve by 2% (from 2013)

ActualImproved by 12.5%

Improved by 8.1%

S t re n g t h e n i n g o f t h e
g lo b a l env iro nm ental
management
systemPrevention of noise, vibration, water pollution,
atmospheric pollution,
Environmental waste disposal, and otherenvironmental problems
management
Transition to the revised
2015 ISO 14001 EMS

Biodiversity measures
Corporate
activities[Environmental goals of each business location]
1. Prevention of water pollution
2. Prevention of factory noise and vibrations
3. Reduction of energy consumption
4. Reduce waste (3R)
5. Contribution to local communities

FY2014FY2015FY2016
Improve by 3% (from 2013)−−

Assessment
TargetActualN Reduce emission on a global scale
Reduce emission
Continue efforts
N Increase the accuracy of environmental data hared examples of environN Established the World Environmental Conference N SNM ade preparations to build an over- mental improvements at the−World Environmental Conferenceseas environmental data system−

Assessment
TargetComply with environmental
Comply with environmental laws andlaws and regulations
regulations
Continue efforts
Achieve zero leakage and zero complaints Achieve zero leakage and zero complaints

Actual

Had no environmental issues−−

Had no environmental issues

Assessment
TargetMake preparations

Re-establish systems

ActualGathered information

Reviewed system documents

Transition to the new systems−−

Assessment
TargetFormulate activity guidelines
Implement activities
Make preparations and implement activities

ActualN Issued guidelines
N Commenced activities

Implemented forestation activities, etc.

TargetMake preparations to issue anenvironmental (CSR) report

Issue CSR Report 2015

ActualInformation gathering and preparation Issued first edition in June 2015

Continue efforts−−

Assessment

Dissemination of information
to society

Continue efforts−−

Assessment

Material Flow (*Actual figures for FY2015)
G -TEK T

INP UT

OUT P UT

EnergyElectricity

38,405 MWh

LPG

105 t

Heavy oil A

180 klDiesel oil

67 kl

Kerosene

35 kl

City gas

79 m3

Design & Development

55,861 m3

Raw materials
Iron
Gasoline

142,652 t
111 kl

15,579 t-CO2

Drainage

39,103 m3

Sales
Purchasing
Administration

Water resources
Clean water

CO2

Production
Pressing & Welding
Machining & Processing

Internal transport (Corporate vehicles)

Industrial waste (quantity generated)

548 t(Quantity thereof ultimately sent to landfill)52 t
CO2

258 t-CO2

20

Env iro nm ent

Reduction of Greenhouses Gas (Japan)
We engaged in efforts to reduce our CO2 emission in Japan, setting our target at an annual reduction rate of 1%
relative to the FY2013 level in terms of emission per unitof sales. In FY2015, poor sales and the reduction in thenumber of units produced as a result of such factors as
the stagnant Japanese economy translated into a 8.1%
decrease in emission per unit of sales—which was 4 percentage points higher than in FY2014—and an increase inCO2 emission by 26 t.
Change in Domestic CO2 Emission and Emission per Unit of Sales

Emission per Unit of Sales

CO2 Emission (t- CO2)13025,00020,00015,00091

93

13,947t

14,777t100
16,177t88

92

15,812t

15,838t

95

0

2011

2012

2013

2014

Activities to reduce the usage of precious water resources
help reduce the energy used to power the pumps at thewater basins. Further, our visualization efforts are contributing to the early detection of leaks in water pipes on our
premises.
Quantities of Water Resources Used

80,000Emission per Unit of Sales

140,000

100

112,000

98,036t

104,915t

92
102,812t

49,66554,724

54,232120

60

0South America
Asia

28,000Europe

China

0

2011

2012

2013

2014

2015 (FY)

Reduction of Waste Materials
We are promoting the reduction of waste materials throughthe 3R (reduce, reuse, recycle) of unnecessary materials.

Quantity Ultimately Disposed (t)60

55,861

Japan

56,000Waste Materials

52.2

49.6
57,401

88
112,379t

North
America

60,00040,000112

84,0002015 (FY)

Reduced Usage of Water Resources

Water Usage (m2)

Change in Global CO2 Emission and Emission per Unit of Sales
CO2 Emission (t- CO2)

90,893t■ Head Office, etc.
■ Technical Division■ Gunma Plant■ Hamura District■ Saitama Plant■ Tochigi Plant■ Shiga Plant

5,000

We commenced our global efforts to reduce our CO2 emission, setting our target at an annual reduction rate of 1%
relative to the FY2013 level in terms of emission per unit ofsales. In FY2015, increased production in North Americaand Asia and higher sales of non-mass-produced items,
combined with the impact of exchange rates, resulted in a
12.1% reduction in emission per unit of sales, and an increase in CO2 emission by 9,567 t.

116

60

10,000

Reduction of Greenhouses Gas (Global)

40

37.5

20

27.2

26.6

2013

2014

20,000

0

0

2011

2012

2013

2014

2015 (FY)

2011

2012

2015 (FY)

Note: The figures represent the quantity collected before
intermediate processing

Green Procurement Efforts
We are aspiring to contribute to the realization of a sustainable society by promoting global manufacturing practices
designed to reduce the environmental burden attributable
to the production processes present in the supply chain
overall. As a part of these efforts, we are engaging in green
procurement efforts in order to procure products, which

21

are made with the appropriate use of chemical substances
using processes resulting in less environmental burden
and contribute to the conservation of the ecosystem, fromsuppliers who are active in environmental conservation activities.

Env iro nm ent

Environmental Improvement Efforts
Reduction of Power Usage by
Controlling the Number of Air
Compressors in Operation (Japan)

Reduction of Lighting Time with
Skylights in Ceilings and Windows on
Walls of Plant (Brazil)

Compressed air is produced by air compressors, as pressmachines, welding jigs, air tools, etc. used at the production site need to be powered by compressed air. In orderto reduce the electricity consumed by such air compressors, Saitama Plant executes coordinated control
and operation of three
inverter air compressors(150kW type) which control the number of units ofcompression machines inoperation as necessary.

G-KTB in Brazil installed many skylights in the ceilings andwindows on the walls of its plant; the hours during which
ceiling lights are turned on has been reduced, by maintaining lighting at a level that does not affect production even if
the ceiling lights are turned
off during daytime when
the sun is out, leading to
the reduction in electricity
consumption.

Inverter air compressors, each of which isequipped with two compression machines

Skylights in ceilings and windows on wallsof plant

Measures against Global Warming
As a measure against global warming, we installed solar panels on the roof tops of plants and began a power generation
business in 2014 from the perspective of generating power in a manner that renders the reduction of CO2 emission possible.
A secondary benefit is that the panels shield the roofs from solar heat and suppresses the increase in temperature inside theplants, leading to reduced load on air-conditioning equipment during summer.

Saitama Plant Solar Power Station[Facility Overview]
Photovoltaic cell capacity

[Facility Overview]
1,605kW

Photovoltaic cell capacity

1,500kW

PCS: TMEIC 500 kW × 3 units

Solar Power Generation

Maximum power output

Shiga Plant Solar Power Station[Facility Overview]

1,306kWSHARP 245 W × 3,920 panels
SHARP 250 W × 1,386 panels

SHARP 245 W × 6,552 panels
Maximum power output

Gunma Plant Solar Power Station

Photovoltaic cell capacity

602kW

SHARP 245 W × 2,408 panels
1,000kW

Maximum power output

500kW

PCS: TMEIC 500 kW × 2 units

PCS: TMEIC 500 kW × 1 unit

System Linkage Commencement Date

Actual Annual Power Output

Annual CO2 Equivalent

Saitama Plant

March 31, 2014 -

1,957,260 kWh

988 t-CO2

Gunma Plant

April 25, 2014 -

1,571,059 kWh

793 t-CO2

Shiga Plant

December 5, 2014 -

777,823 kWh

413 t-CO2

22

Env iro nm ent

G-TEKT’s Biodiversity Efforts
In FY2014, G-TEKT established the “G-TEKT Biodiversity Guidelines” and commenced further efforts with respect to “biodiversity”, one of
the matters relating to its highest priority issue “conservation of the global environment”, which its business activities may possibly impact.

G-TEKT Biodiversity Guidelines
G-TEKT recognizes the “conservation of and sustainable usage of biodiversity” as a significant issue to beaddressed as a part of the “conservation of the global environment” under the “G-TEKT Environmental Philosophy” and shall strive to promote both the conservation efforts and business activities while maintaining
a balance between the two.

Priority Measures
1. Pursuit of environmentally-friendly cutting-edge technologies
The Company shall contribute to the conservation of biodiversity through the development and mass production of products resulting in one of the smallest environmental burdens in the industry.
2. Undertakings related to business activities
The Company shall reduce environmental burden through the pursuit of higher production efficiency, as well
as reduce the impact on biodiversity while striving to achieve the sustainable use thereof.
3. Communication with local communities
The Company shall endeavor to interact with the local communities as well as the society at large by actively
cooperating in the environmental conservation activities and social contribution activities in partnership withthe local communities.

G-TEKT’s Forestation Program

Companies/
Organizations- Provide funds for forest development- Provide labor for forestation, brush clearing, etc.
- Use forests as a welfare program for employees, etc.

Want to do something about the deterioration of forests

Signing ofForestation
Agreement

SaitamaPrefecture- Supports forestation activities- Engages in PR activities- Certifies forest CO2 absorption volume

Have no expertiseor information onforestation activities

Hope to interact withcompanies, etc. and obtain forestation support

Forest Owners- Make forests available- Provide a place for exchange

Saitama Prefecture’s “Corporate Forestation” framework
23

G-TEKT launched “Corporate Forestation” activities in 2014 as part of its biodiversity initiatives.
“Corporate Forestation” is an initiative inwhich three parties—namely, municipal government, etc. (which provides the place forforestation activities), prefectural government(which supports the activities) and companies/
organizations (which engage in forestation activities)—enter into an agreement and carry out
forestation in cooperation with each other.
G-TEKT participates in this initiative under
the slogan “passing on a lush and green earth
to future generations of children”.

Signboard made of wood
sourced from Saitama Prefecture installed near the summitof Mt. Yumitate

Env iro nm ent

Signing of the Forestation Agreement• Shiga Plant
On December 10, 2014, Shiga Plant entered into a “Lake Biwa Forestation Partnership Agreement” with Shiga Prefecture and Ohno Forest Property Ward Management Association.
• Saitama Plant, Hamura District, Head Office and Gunma Plant
On February 4, 2015, we entered into a “Saitama Prefecture Forestation Agreement” with Saitama Prefecture and Tokigawa-cho.
Signing ceremony of Saitama Prefecture Forestation Agreement
Photo (from left): G-TEKT Chairman (then President) Toshitsugu Kikuchi, Saitama Governor Ueda, Tokigawa-cho Mayor Sekiguchi

Forestation Activities• At Ohno Forest in Tsuchiyama-cho, Koka City, Shiga Prefecture
On March 4, 2016, we engaged in the “Second Lake Biwa Forest Partner” forestation activities. Ten young trees of Japanese cherries wereplanted with the participation of 15 employees of Shiga Plant. Staking
and tying tasks were also done to support the young trees, which
would have otherwise fallen easily without support.

“Second Lake Biwa Forest Partner” forestation activities.

• Mt. Yumitate in Tokigawa-cho, Saitama Prefecture
Mt. Yumitate, which is 420m high, suffered a forest fire in May 2013, resulting in approx. 7.6 hectares of forest land being reduced to ashes. To
revive Mr. Yumitate, we launched the “First G-TEKT Forestation” activities on April 25, 2015. With the participation of 45 employees of Saitama
Plant, Hamura District, Head Office and Gunma Plant, 80 broad-leaf
trees were planted, including flower “Rhododendron dilatatum” and tree
“Acer palmatum”, both of which are Tokigawa-cho’s symbols.
On September 26, we conducted the “Second G-TEKT Forestation”“Second G-TEKT Forestation” brush clearing activities

activities, in which 20 employees used grass scythes and manually removed overgrown weeds around the young trees. (brush clearing)In addition to the above, we are engaged in a management projectcommissioned by the Saitama Prefectural Agricultural and Forestry
Corporation; in FY2015, we planted 519 trees in total, and obtained
certification from Saitama Prefecture for the absorption of 5.4 tons of
CO2 emissions.

Saitama Prefecture’s certification scheme
for volume of CO2 absorption by forests

Young tree of Rhododendron dilatatum24

So cial Co nt r ib ut io nsocial contribution activities

Social Contribution
We will continue to make social contributions that can be passed on to the next generation through coexistence withthe local communities.

Social Contribution Activities
Each of the business locations is engaging in various activities, recognizing the importance of interacting and mutuallydeveloping with the people of the local communities.
▶ Shiga Plant

The plant is conducting Operation Clean activities in its peripheries andis participating in the environmental beautification projects conductedby the local companies and municipal governments of the Konan and
the Koka Districts. In terms of environmental beautification campaigns,
25 employees participated and engaged in cleaning activities aroundBlue River Park of Ohzuchi Dam.

Shiga Plant:
Ayukawa Cherry Tree Protection Society’s activities

Shiga Plant:
Beautification activities around Ohzuchi Dam

Overseas Efforts
The Company is engaging in environmental conservation
activities not only in Japan but also in North America,
Europe, Asia, China and South America, with one Environmental Safety Conference in each region. Our overseas
locations are also engaging in activities that contribute totheir local communities. In North America, our employees
are actively engaging in energy conservation measures andprojects that contribute to their local communities. Our European locations are promoting employment support, community welfare, and local environmental activities. In China,energy conservation and CO2 reduction efforts are underway, along with social contribution activities. Our SouthAmerican locations are also actively promoting environmental improvement projects while engaging in social welfare
activities, such as donating to children’s welfare facilities.

North America▶ Gunma Plant

A total of 800 people including junior high school students
from Ohta-shi, various groups,
Subaru affiliates, and other organizations gathered to clean
Kanayama, which is a castle
related to Lord Yoshitada
Nitta and can be considereda symbol of Ohta-shi. Our
employees also participatedin the event to pick up trash
and weed the premises.

Green campaign

Gunma Plant: Kanayama cleaning projectCharity cake sale

25

Repairing communal facilities
in local community (Mailbox)

Activities as model company ofsafe production in community

Tree planting projectTochigi Plant: Kinugawa River bed cleaning activities

Visiting an old people’s home

South America

Saitama Plant, Hamura Plant: Futaba Neighborhood Association “Full of Flowers Project”
Donating clothes to city office▶ C&C Tochigi

Employees participated in
Kinugawa River and Kokaigawa River cleaning activities aswell as the community event“Information Forest Cherry
Blossom Festival”. C&C
Tochigi also cooperates inblood donations.

Promoting separation oftrash by type

China

▶ Saitama Plant, Hamura Plant

Employees participate in
the “Full of Flowers Project”
organized in partnership with
the Futaba Neighborhood Association of Hamura City, andalso engage in cleaning andweeding activities in roads
around the Plant.

Commendation by
local community

Europe▶ Tochigi Plant

In activities to clean the parkon the bed of Kinugawa River,
36 employees of the Plant participated and picked up trash.
Employees also participated in
the Omaruyama Park Resuscitation Basic Plan in Sakura
City, in which they are commissioned to perform brush-clearing work twice a year.

Family event

Holding an environmental
poster contest

Environment improvement
activities at a local river

Green activities

Donation activities for fourneighboring villages

Asia

C&C Tochigi: Kinugawa River and Kokaigawa River cleaning activities

Temple cleaning activities

T hird - P art y Op inio nthird party an opportunity to submit

Third-Party Opinion
Kazuhiro Bai
Professor, Faculty of Economics and Business
Administration and Graduate School of Economics and Business Administration, Reitaku
University
Deputy Director, Business Ethics and Compliance Research Center, Reitaku University
Ph. D. (Management)

Assumed position as a faculty member ofReitaku University in 2001 and has been with theuniversity ever since. President, Japan Society
for Management Accounting; Vice-President,
ICBM (International Conference on Business
Management); Member, Japan Federation ofManagement Related Academies, etc. 2008:
Visiting Professor, Faculty of Business, Bond
University (Australia); Author of numerous publications, including “Outlook on CSR Accounting”(Moriyama Shoten), “CSR Management Control,” and “Requirements for Corporate Survival:
Five Basic Rules for Overcoming Environmental
Changes” (both from Reitaku University Press).

G-TEKT Corporation (hereinafter “the Company”) has summarized, in the form of a “CSR Report”, its initiatives based on its medium and long-term vision “2020 Vision G4-20” with the aim of realizing a sustainable society. The following is a third-party opinion from the perspective of promoting CSR accounting, which is designed to quantify CSR activities, and business continuity.
Aspects to Be Lauded
The Company should be praised for this Report as it has started to proactively take on the tough challenge of balancing CSR
activities with a series of activities from manufacturing to sale of automotive body and transmission components which constitute the core of its businesses.
Firstly, it is worth noting that in the Message from the President, the Company seeks to realize a sustainable society by determining its unique CSR theme under the banner of “innovation in three fields” (“technology innovation”, “sales innovation” and“human resources innovation”), with its medium and long-term vision “2020 Vision G4-20” in mind (pp.3 to 4). Secondly, in“G-TEKT’s CSR” (p.6), the Company identifies the CSR activities that it should engage in while being conscious of the relationship with its stakeholders, in an attempt to clarify its basic stance toward its stakeholders. Thirdly, in “Identification of Material Issues”, the Company clarifies “issues based on G-TEKT’s business strategies” through the “detection of social issues”,
and provides an easy-to-understand explanation of the subsequent steps in this process, i.e., “examination of materiality”,“confirmation of appropriateness of material issues” and “confirmation of material issues” (pp.6 to 8).
What is most distinctive in the Company’s initiatives highlighted here is that CSR efforts are deemed to have a hierarchicalstructure and are implemented in a pragmatic fashion, which reflects its stance on tackling issues while fostering its company-wide consensus on CSR by breaking down its objective—i.e., its medium and long-term vision—in stages (Refer to “Our
Employees’ VOICE”, “Biodiversity Efforts”, (pp.23 to 24), etc.). Such pragmatic efforts are highly promising in terms of thepower to appeal to stakeholders, and are highly commendable. In addition, the Company’s approach to proactively disclosing
not only financial but also non-financial information serves as a benchmark for future integrated reports, and is commended
for being effective in steadily raising the standard of promoting CSR activities.
Improvements Expected
The issue of establishing a management system—i.e., how CSR activities should be linked with business activities, and whatkind of system should they be based on—and the issue of preparing an integrated report were mentioned in the previous
fiscal year as improvements expected to be made. As far as these issues are concerned, the Company is deemed to havesteadily taken the first step with this Report.
The next area in which improvements are expected to be made is providing an easy-to-understand explanation in concreteterms as to how the aforementioned accomplishments of individual CSR activities are linked to the Company’s business performance and operational improvements—in a nutshell, the relationship between the two. The Company’s basic approach to CSR
efforts is to determine CSR activities from its own perspective, and take action to win the understanding of its stakeholders
through specific activities. Based on its ability to take action, the Company should come up with creative ideas (mechanisms) tofurther boost its power to appeal to stakeholders. In the lead up to 2020, as depicted in its medium and long-term vision, I lookforward to the Company’s efforts translating into the establishment of a CSR promotion structure with greater effectiveness.

In Response to the Third-Party Opinion
Corporate Planning Office

V
O
I
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E

I would like to thank Dr. Bai for his extremely valuable comments and opinions on G-TEKT Corporation’s CSR Report 2016, as well as his input on the aspects where we did well and those where
improvements are expected to be made in the future, among others.
In this year’s Report, we covered the “Process of Identifying Material CSR Issues at G-TEKT” as an
example of close links between CSR activities and business activities. In future Reports, we will endeavor to help our stakeholders gain a better understanding of our activities including explaining in
concrete terms how the accomplishments of CSR activities are linked to business performance andoperational improvements—i.e., the relationship between CSR activities and business activities—aspointed out by Dr. Bai.
Going forward, we will continue to respect the valuable opinions of third parties and push ahead with
our CSR activities, while also proactively disclosing data deemed necessary and pursue the evolution of our activities to meet the expectations of all of our stakeholders.

26

G-TEKT Corporation
Omiya JP Building 18F
1-11-20, Sakuragi-cho, Omiya-ku, Saitama City, Saitama Prefecture,
330-0854 Japan
Phone: +81-48-646-3400 (main line)

ht t p: //www. g- t e kt . jp /This brochure is made of paper certified by the Forest Stewardship Council®
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