CSR Report 2018
G-TEKT Corporation

Introduction
Message fromthe President
Corporate Data
Feature Article

Shape the Future

Financial andNon-financial Highlights

We are Shaping the future of people, automobiles and the Earth.
Our Credo

Corporate Governance
Environmental Approach
Relationship with Society

Third-Party Opinion

CSR activities

CSR activities

CSR activities

G-TEKT’s
CSR Management

Respect humandignity

1

Cutting-edge
technology

Sound corporate
management

Code of Conduct
Strive for self-development under the motto of admiration and mutual trust
Provide high-quality, low-cost products using cutting-edge technologies
Be independent and use knowledge and agility to give back to societyManagement Vision
To be a company that truly satisfies customers around the world
and that contributes to a low-carbon society by combining cutting-edge technologies
with technologies for delivering high-quality, low-cost products

Fundamental Policies on CSR
The Company will help solve social issues through business activities
and seek to achieve sustained growth together with society.

Introduction
Message fromthe President
Corporate Data

CONTENTS

Introduction

Feature Article

1

Profile of G-TEKT

Environmental Approach
Environmental Management…………………………………
Development of Environmentally-friendly Products and Technologies……
TopicsG-TEKT Honored by Honda in North America……………
Environmental Improvement Efforts…………………………
Biodiversity Efforts……………………………………………

21
24
24
25
26

Period Covered
FY2017 (April 1, 2017 to March 31, 2018)
However, some past efforts as well as the most recent
activities are also included.
Scope
The Report covers the entire G-TEKT Group, including ouroverseas subsidiaries.

Relationship with Society
Talent Development and Human Rights……………………
Occupational Safety and Health……………………………
Quality Improvement Efforts…………………………………
Supply Chain Management…………………………………
Social Contribution……………………………………………

27
28
29
30
31

Third-Party Opinion
Third-Party Opinion…………………………………………… 34
In Response to the Third-Party Opinion…………………… 34

Release Schedule
June 2018 (Next issue scheduled for June 2019)
Contact Information
Corporate Business Planning Division
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)

Financial andNon-financial Highlights
G-TEKT’s
CSR Management

Reference Guidelines• ISO26000•G RI (Global Reporting Initiative) Sustainability Reporting
Guidelines and Standards• United Nations Global Compact•M inistry of Environment “Environmental Reporting
Guidelines 2012”

CSR activities

17
19
20
20

Corporate GovernanceCorporate Governance………………………………………
Compliance and Risk Management…………………………
Information Security…………………………………………
Stakeholder Engagement……………………………………

CSR activities

Corporate Governance

Environmental Approach

Fundamental Policies on CSR……………………………… 15

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

Relationship with Society

G-TEKT’s CSR Management

Editorial Policy

Third-Party Opinion

Message from the President…………………………………
3
Corporate Data…………………………………………………
7
Feature Article: Three Innovations that Accelerate Growth……
9
Financial and Non-financial Highlights……………………… 13

CSR activities

Our Credo/Code of Conduct/Management Vision/
Fundamental Policies on CSR………………………………………

2

Introduction
Financial andNon-financial Highlights

Feature Article

Corporate Data

Message fromthe President

Message from the President

Environmental Approach
Relationship with Society

Corporate Governance

CSR activities
Third-Party Opinion

CSR activities

CSR activities

G-TEKT’s
CSR Management

We will realize a sustainable society
as a company that “shapes the future”
Naohiro Takao, President Chief Executive Officer
Review of financial results for FY2017 (Seventh fiscal year)
The financial results for the fiscal year ended March 31, 2018 were: net sales in the amount of ¥219.8 billion (year-on-year increaseof ¥13.7 billion), operating income of ¥14.3 billion (year-on-year decrease of ¥0.1 billion), ordinary income of ¥14.6 billion (year-onyear increase of ¥0.2 billion) and net income attributable to owners of parent of ¥11.5 billion (year-on-year increase of ¥1.8 billion).
Although the plan at the beginning of FY2017 had anticipated a temporary decrease in the sales of non-mass-produced items andthus projected a year-on-year decrease in both sales and profits, we managed to post increased sales as well as profits, as a resultof net sales being pushed up by brisk sales in China and the European region, combined with the impact of the exchange rate. The
G-TEKT Group is currently forging ahead with its medium/long-term growth strategy, in which the targets set for the consolidated
financial results for FY2021 (11th fiscal year) are ¥300 billion in net sales and ¥20 billion in operating income. We were able to
make a smooth start in FY2017, the first year of the three-year Medium-term Plan, which is regarded as a period of preparation forachieving these targets.

(Hundred million yen)

Net sales
Operating income
Ordinary income
Net income attributable to owners of parent

3

FY2016 (actual)

FY2017 (actual)

FY2018 (forecast)

2,061
144
144
97

2,198
143
146
115

2,450
171
170
116

Introduction
Financial andNon-financial Highlights

Feature Article

Corporate Data

reduction of weight and improvement of rigidity of
automotive bodies that lead to better fuel efficiency
is an important theme in terms of environmental
conservation. Even in the trend towards electricvehicles (EV), in which internal-combustion engines
are replaced with motors, reduction of body weightis indispensable for increasing the distance to empty.
G-TEKT’s basic stance on CSR activities is tocontribute to the solution of the social issue ofenvironmental conservation and realize corporate
value and social value simultaneously, in pursuitof advanced technologies that shape the ideal
automotive body.

Value creation process

Shape the Future

Production

Global production framework(29 plants in 12 countries)

TalentDevelopment of next generation of management
leaders by utilizing overseas business locations
Talent development and personnel system

Finance

Robust financial constitution

Production
technology

Marketing Purchasing Production

Quality assurance
Code of Conduct
Corporate governanceManagement Principles

Relevant
SDG goals

Enhancement ofcorporate governance
Talentdevelopment
Development ofenvironmentally-friendly
products and technologies
Environmental
management

Four material issues that have been identified
In 2016, G-TEKT identified the following four material
issues for the purpose of understanding the social
impact of its business activities and managing themin the context of CSR: “Enhancement of corporate
governance”; “Talent development”; “Development ofenvironmentally-friendly products and technologies”;
and “Environmental management”.
“Enhancement of corporate governance” ismandatory for the sustained growth of a company.
“Development of environmentally-friendly products
and technologies” is the core element of social
value to be realized by G-TEKT. “Environmental

management” is a duty that must be fulfilled by
the manufacturing industry. G-TEKT is working toaddress each of these issues as a matter of highpriority. Among the four material issues, “Talentdevelopment”—which involves training of staff
who will play the principal role in dealing with theseissues—is a theme on which most of our efforts are
currently focused.
As part of the “Human resources innovation”
based on its medium/long-term growth strategy,
G-TEKT has reviewed its personnel evaluation
system and adopted a new talent development

CSR activities

Weight reduction/rigidity improvement
technology
Press/welding processing technology
Mold design/manufacturing technology

R&D

G-TEKT’s material
issuesCorporate GovernanceTechnology

Business activities

Environmental Approach(four countries including G-TEKTTokyo Lab (GTL) in Japan)
Analysis/development technologicalcapabilities

Relationship with Society

Development Global R&D framework

CSR activities

Contribution to society through CSR
Changes in external environment

Third-Party Opinion

G-TEKT’s strengths

G-TEKT’s
CSR Management- Shaping the future of people, automobiles and the Earth -CSR activities

In recent years, expectations placed in corporatesocial responsibility (CSR) have become higher
and higher. Such responsibility cannot be fulfilled
without healthy corporate management. We believe
that, namely, CSR activities essentially consist ofa cycle in which contributions are made to solve
social issues through core operations and suchcontributions result in an increase in corporate value.
G-TEKT’s corporate slogan “Shape the Future”
indicates our approach to fulfilling our responsibility
towards realizing a sustainable society whileachieving sustained growth ourselves.
In the core operations of G-TEKT, which is
an automotive body manufacturer/distributor,

Message fromthe President

What are CSR Activities for G-TEKT?

4

Introduction
Message fromthe President

Message from the President

Corporate Data

program. In addition, we will promote improvements
in productivity per employee from FY2018 onwards.
This will not be limited to improving the operational
efficiency of production sites and technologicaldevelopment; it will also involve making therespective roles of all employees more sophisticated,

Process for Identifying Material Issues

Feature Article

We believe that the G-TEKT Group should engage in business activities while understanding the social impact of its
business activities, managing the possibility of having such an impact as well as controlling the impact itself. Based onsuch view, we identified the material aspects as of 2016 in consideration of the characteristics of G-TEKT’s business,while seeking the opinions of stakeholders. We have organized and enhanced the method of managing material issues
that have been identified, and integrated them into the policies for the third Medium-term Plan.
STEP

STEP

STEP

STEP

STEP

Clarification ofsocial issues

Issues from G-TEKT’s
business strategy

Examination ofdegree ofimportanceConfirmation of
appropriateness ofmaterial issues

Identification ofmaterial issues

Financial andNon-financial Highlights

1

2

3

4

5

Review

G-TEKT’s
CSR Management

Four material issues that have been identified

Environmental Approach
Relationship with Society

Third-Party Opinion

CSR activities

Corporate Governance

Enhancement of corporate governance

CSR activities

CSR activities

including those of the administration division.
Employees will be given support at the company
level to make self-improvements by utilizing the extra
time created as a result of higher productivity, sothat it will lead to the development of talent for the“creation of new value”.

5

We recognize that in particular, the enhancement of the Group’s
governance and the maintenance of a sound governancestructure are extremely important issues for G-TEKT, a global
corporation with affiliates all over the world. Given this, in addition
to the periodical reviews of states of governance structures in ourdomestic and overseas subsidiaries by using a checklist, etc.,
we share issues and plan to implement improvement measures
between the headquarters and those subsidiaries, with the goalof maintaining and enhancing the level of governance.

Talent development
A company cannot grow without growing its people. We put
a great deal of effort into company-led talent development
at G-TEKT, where various talent development programs areavailable for all employees from new to experienced ones. To
be a company that undergoes sustained growth and evolution,
G-TEKT is committed to treating each and every employee as
an individual.

Development of environmentallyfriendly products and technologies
Automobiles created from G-TEKT’s business are one of the
products that require utmost consideration for the environment.
In particular, the fuel efficiency of an automobile is greatly
influenced by its weight, so reduction of body weight is a major
challenge. At G-TEKT, we manufacture products with a low
environmental burden by reducing the body weight withoutcompromising its performance by applying G-TEKT’s proprietary
design concepts and weight reduction technologies.

Environmental management
In order to realize a sustainable society, the task of tacklingclimate change risks is a major corporate social responsibility.
G-TEKT not only proactively engages in initiatives to reducegreenhouses gas (GHG) released through its businesses
in a systematic manner, but also endeavors to reduce theenvironmental burden in the value chain.

CSR issues in future business operations
G-TEKT’s global network currently consists of 21
subsidiaries/affiliates, 29 plants, one R&D center,two R&D facilities and two research offices inJapan, China, Asia, North and South Americas andEurope (as of the end of May 2018). For G-TEKT,
which is seeking to further expand its global

business operations in the future, we recognizethat the priority issue in the context of CSR is the“enhancement of Group governance”.
In FY2017, the in-house Compliance Committee
played a central role in establishing the “Global
Fundamental Policies on Compliance”. In FY2018,

Introduction
Message fromthe President
Corporate Data

disclosure”. We intend to proactively disclose not
only financial information but also information in the
non-financial domain that covers corporate activities
in a comprehensive manner, in order to improve thetransparency of management and build a strong
relationship with stakeholders based on trust.

Financial andNon-financial Highlights
G-TEKT’s
CSR Management
Corporate Governance

CSR activities
CSR activities

The G-TEKT Group has been issuing the CSR Report since 2 0 1 5 for the purpose of disclosing information
to its stakeholders and helping them gain a better understanding of its CSR activities. In this year’s CSR
Report, we have made conscious efforts to proactively disclose more information than ever before, in orderto improve the company’s transparency. We hope tocontinue being a trustworthy company by listening to ourstakeholders’ opinions and through the proactive executionof stakeholder engagement.
As a global business enterprise, we have also covered
the status of many overseas subsidiaries/affiliates’ activities
in this CSR Report.
We will continue to help solve social issues through ourbusinesses, and thereby improve our corporate value andachieve sustained growth.
We would like to ask for the continued support of all our
stakeholders for our future endeavors.

Environmental Approach

To Our Stakeholders

Relationship with Society

believes that it can help achieve SDGs by realizing
a number of highly relevant goals through its
efforts in tackling the aforementioned four material
issues. In particular, goals such as “AFFORDABLE
AND CLEAN ENERGY”, “DECENT WORK WITH
ECONOMIC GROWTH”, “INDUSTRY, INNOVATION
AND INFRASTRUCTURE”, “RESPONSIBLE
CONSUMPTION AND PRODUCTION” and“CLIMATE ACTION” may be deemed to be highly
relevant. In this CSR Report 2018, we indicatedthe link between such SDG goals and our businessactivities.
G-TEKT will continue to meet the expectations of
all our stakeholders at all times as a company that“shapes the future”.

Third-Party Opinion

The United Nations-led Sustainable Development
Goals (SDGs) set for 2030 are regarded as abenchmark that we should place importance on
when portraying the future vision of G-TEKT. As
described at the beginning of this CSR Report,
we will fulfill our responsibility towards realizing
a sustainable society while achieving sustained
growth ourselves, in accordance with our corporate
slogan “Shape the Future”. G-TEKT’s ideal way tosolve social issues is in consistent with creation of
the future sought by SDGs.
SDGs consist of 17 goals set on a field-byfield basis, as well as 169 targets (to measure thelevel of achievement), but not all of these goals
are within the scope of efforts to be made bycompanies that have adopted SDGs. G-TEKT

Feature Article

Relationship between G-TEKT’s business activities and Sustainable Development Goals (SDGs)

CSR activities

we will build a robust Group governance structure
required of a global enterprise by reviewing rules
and regulations at each overseas business locationin accordance with the “Global Fundamental
Policies on Compliance”.
Another CSR issue to be addressed by G-TEKT
going forward is the “enhancement of information

6

Introduction
Message fromthe President

Corporate data

Company Name G-TEKT Corporation

Company
Overview

Capital4,656,227,715 yen

Corporate Data

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

Number of Employees 8,232 (Consolidated), 1,170(Japan) (As of March 31, 2018)

Financial andNon-financial Highlights

Feature Article

Global Network

8
1

China

EuropeNorth America

51plants5
1

plants

R&D facility

R&D facility

plants
R&D facility

Japan

1 4
1

plants
R&D facility

FY2017
Percentage of Net Sales by Segment
South America
3.0% China

17.2%

laboratory

Japan

21.8%

Asia

16.9%

G-TEKT’s
CSR Management

Asia
South America

Environmental Approach

Corporate Governance1

Relationship with Society

CSR activities
CSR activities

April 1, 2011

Representative Naohiro Takao,
President/Chief Executive Officer

Third-Party Opinion

CSR activities

EstablishedLines of Business6

North America
34.3%

Europe
6.8%

plantsplant

History
November 1966 TAKAO KINZOKU KOGYO Co., Ltd.
Shiga Plant was established in Tsuchiyamacho, Koka District, Shiga Prefecture (currently,
Tsuchiyama-cho, Koka City, Shiga Prefecture).

May 1988 Joint venture by both companies

June 1952 TAKAO KINZOKU KOGYO Co., Ltd.

January 1969

TAKAO KINZOKU KOGYO Co.,
Ltd. was established in Tanabe
City, Wakayama Prefecture.

Hamura Plant was established and began
operations at Hamura-machi, Nishitama
District, Tokyo (currently Hamura City, Tokyo).

Jefferson Industries Corporation wasestablished in the U.S. State of Ohio, as a joint
venture company involving three companies
including KIKUCHI CO., LTD. and TAKAOKINZOKU KOGYO Co., Ltd.

November 1953

May 1984 Joint venture by both companies

October 1996 KIKUCHI CO., LTD.

KTH Parts Industries, Inc. was establishedin the U.S. state of Ohio as a joint venturecompany involving five companies including
KIKUCHI CO., LTD. and TAKAO KINZOKUKOGYO Co., Ltd.

Jefferson Elora Corporation wasestablished in Ontario, Canada.

KIKUCHI CO., LTD.

Kikuchi Body Kogyo, Ltd. wasestablished at Mitaka City, Tokyo.

KIKUCHI CO., LTD.

TAKAO KINZOKU KOGYO Co., Ltd.

TAKAO KINZOKU KOGYO Co., Ltd.

1997-1999 KIKUCHI CO., LTD.

Acquired ISO9001 certification.
TAKAO KINZOKU KOGYO Co., Ltd.

1997-1999 KIKUCHI CO., LTD.

7

Acquired ISO14001 certification.

Introduction
Message fromthe President

Main
Components

Auto Body Frame Components
Roof

Corporate Data

ParcelSide structure

Dashboard

Feature Article

Back panel

Frame
Floor

Frame

Published first CSR Report.

KIKUCHI CO., LTD. and TAKAO KINZOKUKOGYO Co., Ltd. merged. The trade name waschanged to G-TEKT CORPORATION, and theheadquarters were relocated to Saitama City,
Saitama Prefecture.

March 2016

March 2005 KIKUCHI CO., LTD.

December 2014

April 2017

Wuhan Auto Parts Alliance Co., Ltd.
was established in Wuhan, Hubei
Province in China.

Listing changed to the First Section of
the Tokyo Stock Exchange.

Established an enhanced structure topromote global CSR activities.

TAKAO KINZOKU KOGYO Co., Ltd.

October 2001 KIKUCHI CO., LTD.

Auto Parts Alliance (China) Ltd. wasestablished in Guangzhou, Guangdong
Province in China.

TAKAO KINZOKU KOGYO Co., Ltd.

February 2008 KIKUCHI CO., LTD.
Acquired ISO/TS16949 certification.

Issued G-TEKT’s Supplier CSR
Guidelines.

April 2018

CSR activities
CSR activities

June 2015
April 2011

Environmental Approach

KIKUCHI CO., LTD.

Jefferson Southern Corporation wasestablished in the U.S. state of Georgia.

Relationship with Society

TAKAO KINZOKU KOGYO Co., Ltd.

Third-Party Opinion

July 2000

CSR activities

Corporate Governance

G-TEKT’s
CSR Management

Financial andNon-financial Highlights

Transmission Components

G-TEKT TOKYO LAB (GTL) wasestablished Hamura City, Tokyo.

8

Introduction

Feature Article

Corporate Data

To clarify the challenges we need to overcome in the form of output of our 2020 Vision “G4-20”, weestablished management targets in concrete terms, i.e., to achieve ¥300 billion in consolidated net salesand ¥20 billion in consolidated operating income.
At G-TEKT, we are endeavoring to further enhance our corporate structure by aggressively promoting
innovation in three fields which we have specified as the bedrock of our growth strategy to achieve thesetargets without fail—namely, “Technology”, “Sales” and “Human resources”.

Feature Article

Message fromthe President

Three Innovations“Technology” innovation

Corporate Governance
Environmental Approach
Relationship with Society

Third-Party Opinion

CSR activities

CSR activities

CSR activities

G-TEKT’s
CSR Management

Financial andNon-financial Highlights

G-TEKT TOKYO LAB launched

9

In April 2018, the Group’s first full-fledged research& development laboratory “G-TEKT TOKYO LAB”(“GTL”) commenced operations with the aim ofrealizing G-TEKT’s technological innovation.
GTL, which is equipped with state-of-the-art
experiment facilities, will serve as the central facility
in the research and development (R&D) network
spanning Japan, the U.S., Germany and China,
in order to meet the needs of customers brought
together from around the world with advanced
technologies.
Now that the new GTL has been established,technological standards and development speed
have been dramatically boosted at G-TEKT, which
had long been refining its proprietary technologies torealize high automotive body performance in termsof both “reduced weight” and “improved rigidity”,
which are mutually exclusive. As we speak, ourresearchers continue to take on the challenge ofrealizing next-generation lightweight, high-rigidity
automotive bodies.
R&D Network

Development Roadmap
Structure with optimized
From automotive component
materials allocation
manufacturer to
Steel + aluminumR
eplacementofmaterials
automotive bodywith lightweight materials
body frame
manufacturer

Steel + aluminum
body + plastic
composite body

Steel + aluminumcomponents

G-TED

C&C Tochigi

Research & newtechnology proposal

Product development andnew technology proposals

Steel

35%
Automotive body
evolution

30%
20%

GTL
R&D and realization of
cutting-edge technologies

GSR
Research

G-NAC

Joint research with universities
and specialized research
institutions
Product development andnew technology proposals

Worldwide execution oftechnology innovation via global R&D network

Weight reduction
proposal target
Comparison withexisting models
Benchmark10%

Hot stamping application
Cold pressing
1200Mpa class
Aluminum sheet (5000class)
Dissimilar materials joining

Hot stamping 1800Mpa
Cold pressing 1500Mpa class
Aluminum sheet (6000/7000 class)
Evolved version of dissimilarmaterials joining
Aluminum hot variable closed profile
forming

Non-ferrous metal with low specific gravity
Casted aluminum product replacement
technology
Mg, Ti materials molding technology
Carbon Fiber Reinforced Plastics (CFRP)

Manufacturability
established

Manufacturability
established

Body structure
analysis

BenchmarkBenchmark
Body structure
analysis

Technologicalevolution

Technology
proposalTechnology
proposal

2020

2025

2030 ...

Proposal of next-generation ultra-lightweight,
high-rigidity body demanded by automakers

Introduction
Corporate Data

Message fromthe President

that Accelerate Growth
Evolution of collision simulation technology

Aluminum is useful for reducing the weightof automobiles, but aluminum press working
involves molding difficulty and requires advanced
technology. Moreover, for mass production ofaluminum, a wide range of know-how is needed tocarry out continuous processing. Lately, a European
luxury car manufacturer has recognized G-TEKT’s
aluminum production technology and decided toplace large orders for aluminum body components
with us. In conjunction with this, we are currently
building the Group’s first aluminum mass production
plant (“G-TES”) in the Slovak Republic. The plant isscheduled to commence operation in June 2019.

Financial andNon-financial Highlights
G-TEKT’s
CSR Management
CSR activities

Corporate Governance

Reducedweight by

CSR activities

Integrated hot stamping structure

Environmental Approach

Mass production of aluminum in Europe

Hot stamping processing
High tensile strength
steel structure

CSR activities

Due to molding difficulty and rigidity problems, thesides of an automotive body are structurally divided
into multiple components. At G-TEKT, however,
we enabled integral molding of the door apertureby applying hot stamping technology that involves
steel quenching and molding. Integral molding of thedoor aperture boosts the body’s rigidity and enables
further reduction in weight. Another advantage isthat less capital investment is required as it allows
cutbacks in the welding process.
We have succeeded in creating new value by
integrating our proprietary press molding technologythat we have nurtured over the years with advanced
hot stamping processing technology.

Collision simulation in accident scenario

Relationship with Society

Integral molding technology based on hot stamping

Feature Article

automakers and evolved this technology to such alevel that simulated tests are no different from tests
involving actual vehicles. G-TEKT is an “automotive
body manufacturer” that can perform all processes
from development to production of automotive
bodies on behalf of automakers.

Third-Party Opinion

In an automotive body, collision safety performanceis important for protecting the lives of the people
in the automotive in the event of an accident. If theautomotive body is manufactured more robustly, it
will make the vehicle safer but heavier, resulting inpoor fuel efficiency. That is why the developmentof a lightweight, rigid body began. To assess the
body’s collision performance, automakers used
to manufacture a prototype vehicle and assess its
collision performance by actually performing crashtests, but due to the time taken and cost incurred,
automakers have utilized virtual collision simulationin recent years.
G-TEKT spearheaded in adopting collision
simulation technology that had been applied by

10

Introduction

Feature Article

Message fromthe President“Sales” Innovation

Corporate Data

Building a Global Sales Structure

Financial andNon-financial Highlights

Feature Article

We have revamped the existing individual regionled sales structure and transitioned to a global sales
structure based on collaboration with each overseas
region centering on Japan. Based on customers’
needs identified by the “research network” spanningworldwide, the new Sales Planning Department
established at the headquarters and “each region”
collaborate with each other in planning the optimal
sales strategy for each region.
We have also strengthened interregional
connections and facilitated the sharing of information
on customers’ needs, as a result of which standalone sales activities have evolved into globally
coordinated sales activities, while sales strategies

Global sales structure
Regional Operations(China)Regional Operations(North America)

Regional Operations(Europe)Japan
Regional Operations(Asia)

Regional Operations(South America)

Corporate Governance
Environmental Approach
Relationship with Society

CSR activities
CSR activities

G-TEKT’s
CSR Management

Research Office in China, the World’s Biggest Market

Third-Party Opinion

CSR activities

are being planned on an automaker-by-automakerbasis.
By strengthening the global sales structure,
G-TEKT will undergo sustained growth andevolution.

11

The G-TEKT Group has been putting efforts into
building a global research network based on theview that it is important to have information thatis not only up to date but also accurate, in orderto promote “Technology innovation” and “Sales
innovation” in its growth strategy. In particular,
getting a grasp of trends in China—where the flowof information is sluggish despite its automobile
market being the world’s largest—has important
implications for management decisions as well.
For this reason, we opened a research office
aimed at conducting market research and making
technology proposals (“GSR”) in Shanghai in
October 2017. GSR not only plans new sales
strategies for the Chinese market, but alsocollaborates with the research facility in Germany
and the development facility in North America thatare already in place, to share information on ever-changing trends in the automobile market within theentire Group. This research network plays a vital rolein serving as an “antenna”, as the driving force for
G-TEKT’s growth strategy.

At present, two expatriate staff members and one local staff member
are enthusiastically conducting market research.

G-TEKT Brand
G-TEKT is not just a components manufacturer
that produces and sells automotive components.
G-TEKT is an automotive body manufacturer
equipped with advanced technology and a global
production network which can be entrusted with allprocesses from development to mass production.

We strive to be the one and only partner who can,
together with automakers, conceptualize and realize
the ideal automotive bodies they demand from thedevelopment stage. What we are selling is a brandcalled G-TEKT.

Introduction
Message fromthe President“Human Resources” Innovation

Feature Article
Financial andNon-financial Highlights
CSR activities

G-TEKT’s
CSR Management
Environmental Approach
Relationship with Society

Third-Party Opinion

Takeru Baba

General Manager, Human Resource
Development Division, Corporate
Management Operations

Based on the view that employees are important management resources
for a company to continue achieving sustained growth, we regard
employees as “talent”, instead of “human resources.” It is nothing but
the growth of talent that will create the future of G-TEKT, and what takes
place in our talent development system is purely development aimed at
cultivating talent that can create the future.
For example, in the short-term overseas study program launched in2013, we have increased the number of countries to which employees
are dispatched (five countries at present). After the employees complete
the language school course overseas, they are given the opportunity toexperience foreign culture first-hand—not just language study—throughinternship with local staff at an overseas business location. A total of
25 employees have completed the overseas study program since its
launch five years ago. The company’s growth strategy is closely linked totalent development, as demonstrated by the fact that an employee withoverseas study experience was dispatched as a member of the team at
the research office in Shanghai shortly after returning to Japan. In addition,members who are proficient in a language, including those with overseas
study experience, voluntarily take part in a program to help improve theircolleagues’ English skills and periodically make presentations about theirown experiences, which has brought about a culture of learning together.
G-TEKT will proactively assist growth-seeking talent and installmechanisms for talented individuals to induce other employees aroundthem to get involved as well, so that employees can truly acknowledge
each other’s growth, and in pursuit of self-fulfillment, create the next era
based on self-initiative and teamwork.

Corporate Governance

Message from the General Manager in Charge of Human Resources

CSR activities

New employee training session

CSR activities

In order for a company to realize sustained growth
while adapting to the business environment surrounding automobiles that changes at an inconceivable pace, it is important that each and every
employee takes on challenges based on new ideas
from a fresh perspective, without being bound bypast success stories, conventional methodologies
or common practices. G-TEKT aspires to be a company that accommodates and encourages suchideas on an organization-wide scale. Having alreadyfinished the introduction of a new personnel systemand talent development system as well as digital
tools to assist them, we have started implementing
these systems and tools on a full scale. Going forward, we will cherish each and every employees’
eagerness to learn and take on challenges, and will
also develop “talent that creates new value” throughproactive talent development in coordination withbusiness strategies.

Corporate Data

Reforming the Talent Development System

12Introduction

Financial and Non-financial Highlights

Message fromthe President

Financial Highlights

Net sales

Operating income (Hundred million yen)
Operating margin (%)(Hundred million yen)

2,207

2,061

2,198
144

141

Corporate Data

1,815

1,938

Ordinary income (Hundred million yen)
Ordinary margin (%)

128

7.8

96

143

114

5.8

6.5

7.7

6.6

Feature Article

2014

2015

2016

2017 (FY)

2013

2014

2015

2016

Operating income

Net income attributable to owners of parent (Hundred million yen)
Ratio of net income attributable to owners of parent (%)

2017 (FY)2013

Operating margin

Profit per share

G-TEKT’s
Financial andCSR Management Non-financial Highlights

76

4.4
47

2015

2016

2017 (FY)

Ordinary margin

Total assets (Hundred million yen)
Net assets (Hundred million yen)

(Yen)

97
80

2014

Ordinary income

2,277

264.28

2,153

2,251

2,086

222.46
182.765.3

4.7

172.93
1,160

3.4

1,148

1,305

1,193

106.01

2.4

2013

2014

2015

Environmental Approach

Corporate Governance

Net income attributable to owners of parent

Third-Party Opinion

Relationship with Society

CSR activities

5.2

4.6

115

CSR activities

7.0

90

5.0

2013

CSR activities

146

144

139

7.0

2016

2013

2017 (FY)

2014

2015

2016

2017 (FY)2013

Ratio of net income attributable to owners of parent

2014

Total assets

Equity ratio

ROA

ROE

(%)

(%)

(%)

2015

2017 (FY)

8.2
6.8

46.9

46.0

48.1

51.5

52.5

6.7

9.8

9.2

5.1

10.2

7.3

4.3
4.8

2013

2014

2015

2016

2017 (FY)

2013

2014

2015

2016

Research and development expenses

Interest-bearing liabilities(Hundred million yen)(Hundred million yen)2017 (FY)

2013

2014

2015

2016

2017 (FY)

Cash dividends per share (Yen)Dividend payout ratio (%)

552

21

22

40

457

39

20

32

36

336

17

282

289

24

11
18.5

16.6
16.2

14.8

2015

2016

10.9

2013

2014

2015

2016

2017 (FY)

2013

2014

2015

2016

2017 (FY)

2013

2014

Cash dividends per share

13

2016

Net assets

2017 (FY)Dividend payout ratio

Introduction

Non-financial Highlights

Greenhouses gas (GHG) emissions

Weight of waste materials released

Water usage

Environmental accounting (cost)(t-CO2)(t)(m2)(Million yen)

338

125,139

756
682

652

56,00955,94358,538

245

229

2015

2016

2015

2017 (FY)2016

2017 (FY)

2015

2016

2017 (FY)

2015

2016

Corporate Data

117,6402017 (FY)

Feature Article

114,954

Message fromthe President

Environmental Indicators

Social Indicators
Education and training expenses per person(Yen)

Number of days of paid vacation taken (days)
Ratio of paid vacation taken (%)* Childcare leave programunique to G-TEKT(implemented in FY2016)

45,911
1,189

1,181

10.0

41,469

1,170

7.2

7.5

33

9
8

8.9

8.7

34,099Number of employees taking childcare absence from work (persons)
Number of employees taking childcare leave* (persons)
Number of employees taking maternity absence from work (persons)

2
48.5

47.9

7.5

54.0

G-TEKT’s
Financial andCSR Management Non-financial Highlights

Number of employees (persons)
Number of female employees (persons)Female ratio (%)

30

7

55

4

44

6

86

88

2

88

2015
2016
2017 (FY)
Number of employees
Number of female employees
Female ratio

2015

2016

2017 (FY)

2015

2016

2017 (FY)

Number of days of paid vacation taken
Ratio of paid vacation taken

2015
Maternity leave

2016

32017 (FY)Childcare absence from work (female) Childcare absence from work (male)Childcare leave (female)Childcare leave (male)

Nil

Environmental problems(accidents, contamination)

Nil

Nil

Nil

Environment-related complaints

Nil

Nil

Nil

Biodiversity conservation
expenditure*1¥3.30 million¥3.45 million¥4.08 million

Number of foreign employees

11 persons

9 persons

7 persons27.3 hours/month26.0 hours/month23.0 hours/month

2.6%

3.3%

3.6%

Personnel turnover rate
Number and ratio of disabled
persons employed

22 persons, 2.0%

24 persons, 2.1%

25 persons, 2.1%

Number of employees on leave
due to accident

1 person1 person1 person

Number of employees on mental
health leave

8 persons

5 persons

9 persons

Expenditure on social contribution
activities*2¥4.65 million¥8.43 million¥4.71 million

Expenditure on political donations
and lobbying activities

¥0

¥0

¥0

Measures against conflictminerals

Not applicableNot applicableNot applicable

Whistleblowing incidents

19 cases

14 cases

27 cases

Nil

Nil

Nil

Number of violations of domestic/
overseas laws & regulations

CSR activities

Nil

CSR activities

Nil

Environmental Approach

Violations of environmental laws
& regulations

Average monthly overtime hours

Governance

FY2017(actual)March 31, 2018

CSR activities

Social

FY2016(actual)March 31, 2017

Relationship with Society

Environment

FY2015(actual)March 31, 2016

Third-Party Opinion

Classification

Corporate Governance

Other Non-financial Data

*1: Included in environmental accounting *2: External expenditure only

14

Introduction

G-TEKT’s CSR Management

Fundamental Policies on CSR
Message fromthe President

The Company will help solve social issues through business activities and seek to achievesustained growth together with society.

Relationships with Stakeholders

Customers
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.

Corporate Data

Customers

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.

Society

Shareholders
andinvestors

Feature Article

Employees

Employees
Environment

SafetyFinancial andNon-financial Highlights

Local
communities

G-TEKT’s
CSR Management

We will proactively seek to integrate and harmonize withthe local residents through such means as participation insocial contribution activities and seek to establish favorable
relationships based on mutual understanding.

Clients

Shareholders and investors
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.

In order to become a trustworthy company for which our stakeholders continuously hold high expectations, we haveestablished “Our Code of Conduct” as the code of conduct to be followed by G-TEKT employees. Each employee ensuresthat he/she acts with full awareness as a member of society and a member of a company constituting a part of theThird-Party Opinion

15

G-TEKT’s Responsibilities to Be Fulfilled in Response to High Social Expectations
4 Basic Domains
Engage in fair andtransparent businessactivities by enhancing
corporate governance
Provide good quality
products from a safe
and comfortableenvironment
Respect humanresources, pay regard
to human rights, andimprove the work
environment
Contribute to theconservation of the global
environment as well as tolocal communities

Subdivided into 7 CSR themes

Environmental Approach

Corporate Governanceautomobile industry.

Relationship with Society

CSR activities
CSR activities

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
Quality

CSR activities

Clients

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 lowcarbon society.

SocialContribution

We will make social contributions that canbe passed on to the next generation throughcoexistence with the local communities.

Introduction
Message fromthe President

G-TEKT Group’s Structure to Promote CSR Activities
G-TEKT is structured to promote CSR activities based on an organization that cuts across the entire Company, in which a totalof approximately 60 CSR Leaders (including responsible persons and working-level staff) are assigned in Japan and overseas.

Diagram of CSR promotion structure

Corporate Data

In addition to the “Global CSR Conference” held biannually in Japan, the “CSR Leaders’ Conference” is held four times a
year, for which a framework is in place to share CSR activities’ achievements and challenges, distribute the materials andminutes of these Conferences to overseas CSR Leaders, and deal with matters as common issues.
Board of Directors

Financial andNon-financial Highlights

Regional Operations (Europe)

Hidetsugu Kikuchi
General Manager of Corporate
Business Planning Division

In 2014, we announced the Fundamental Policies on CSR for activities relating
to Environment (E), Society (S) and Governance (G)—which had previously been
conducted individually—and launched CSR activities corresponding to fourdomains and seven CSR themes. In 2015, we summarized these activities in
the CSR Report and published it as non-financial information. This is the fourthyear for the CSR Report. In the meantime, in an effort to improve corporate value
by bringing CSR activities closer to business activities while striking a balance
between them, CSR self-inspections were launched, material issues wereidentified by the management, and regulations and structures were developed as
a company-wide initiative, among others. Going forward, we will continue to findweak spots in activities and rectify them, and promote activities to deepen our
stakeholders’ understanding. We will also endeavor to further enrich the content
of this CSR Report as a communication tool, so that our CSR activities will be
understood widely by the general public.

G-TEKT’s
CSR Management
Environmental Approach

Interview with Officer in Charge of CSR

Relationship with Society

CSR study meeting targeted at management

Third-Party Opinion

The biannual Global CSR Conference is a forum where members of the management team gather from Japan and overseas to discuss the achievements andchallenges of CSR activities as well as future activity policies, etc. based on suchachievements and challenges.
In the previous year, a CSR study meeting targeted at management was held at
the Global CSR Conference with a lecturer invited from outside G-TEKT. In order tofurther instill CSR within G-TEKT, the secretariat plays a leading role in holding the“G-TEKT Internal CSR Activities Study Meeting”. These events serve as an opportunity to deepen understanding of CSR and G-TEKT’s CSR activities, and we willcontinue to hold them in a planned manner.

Corporate Governance

Global CSR Conference

CSR activities

Regional Operations (Asia)

Regional Operations (China)

CSR Leaders(32 persons)

CSR activities

CSR Leaders(7 persons)Regional Operations (South America)

Regional Operations (North America)

Overseas Business Division

Purchasing DivisionCorporate Management Operations

Quality Assurance Operations

Sales Division

Technical Division

Production Division

Central Safety and Health Committee

CSR Leaders(7 persons)

CSR activities

CSR Leaders’Conference

Chair: President
Secretariat: Corporate Business Planning DivisionObjective: To discuss achievements, challenges and future
policies of CSR activities of the entire Group

President

Central Environmental Promotion Committee

Corporate Governance Committee

Global CSR Conference

Feature Article

Executive Board

16

Introduction

CSR activities
Corporate GovernanceCorporate GovernanceFeature Article

Corporate Data

Message fromthe President

As a global business enterprise, we are endeavoring to raise the standards of governance on a group-wide scale.

G-TEKT acknowledges the importance ofmanagement as a company with social responsibility
in order to become a company in which customers,
employees, shareholders, investors and society placehigh 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 considerationof risks, and to build a relationship based on trust withall stakeholders.
We will seek to attain sustained growth and improve
corporate value in the medium and long run byimplementing corporate governance more effectively
and making ongoing improvement efforts.

Our Corporate Governance Code has been establishedwith the aim of realizing “aggressive governance.” In
light of 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 ourbasic approach, framework and implementation policy
regarding corporate governance, for the purpose of
establishing a structure of governance that would be
most effective for the management of G-TEKT withthe aim of attaining sustained growth and improving
medium/long-term corporate value, as disclosed in the
Corporate Governance Report.

Financial andNon-financial Highlights

 o view our Fundamental Policies on Corporate
T
Governance, please check the following link:URL o view our Corporate Governance Report, pleaseTcheck the following link:
https://www.g-tekt.jp/company/pdf/
governance_report.pdf

https://www.g-tekt.jp/company/pdf/
governance_guideline.pdf

General Meeting of Shareholders
Election and dismissal

Advisory Committee
President
Independent Outside Members of the Board

Report Election and dismissal

Consultation

Auditing

Board of Directors
ReportChair: Chairman of the Board

Election and dismissal

Audit andSupervisory Board

Cooperation

Accounting
Auditor

Auditing
G-TEKT’s
Philosophy

Formulation of fundamental policies of internal control

Report and submission

Executive Board
Chair: President
Deployment of policies

Report andsubmission

Deployment, promotion, andproposal of measures

Deployment ofpolicies

Risk Management Sub-Committee

Deployment,
Reporting andpromotion, andinformation
proposal of measures
sharing

Headquarters and plants

Corporate
Ethics
OfficeReport andsubmission

Reporting andinformation sharing

Overseas subsidiaries

Proposals

Deployment ofpolicies

Business Auditing

Corporate Governance Committee

Compliance Sub-Committee

Our Code of
Conduct

Business Auditing
OfficeReport and submission

Replies

Realization

Internal Control System for Business Execution

Environmental Approach Corporate Governance
Relationship with Society

17

Business Administration Structure

Corporate Governance Structure

G-TEKT’s
CSR Management
CSR activities
CSR activities

Compliance with the Corporate Governance Code

URL

Third-Party Opinion

CSR activities

Fundamental Policies on Corporate GovernanceSelf-examination

G-TEKT appoints persons who fulfill the criteria
for independence stipulated by the Tokyo Stock
Exchange as independent outside officers.

Financial andNon-financial Highlights

Feature Article

Corporate Data

Message fromthe President

Introduction

Independence of Outside Members of the Board
and Outside Audit and Supervisory Board Members

Efforts to Establish Global Governance
G-TEKT and its subsidiaries share the basic approachto corporate governance and are enhancing theautonomous and responsible corporate governancestructure tailored to the laws and regulations ofeach country, the local business environment, etc.
Furthermore, responsible persons at the subsidiaries
are appointed as members of G-TEKT’s Compliance
Sub-Committee and Risk Management SubCommittee, with the aim of improving compliance andrisk management of the G-TEKT Group as a whole.
In the field of compliance, the Corporate
Governance Committee assists in building a corporate
governance structure at overseas subsidiaries. In
addition, we have established fundamental policies
against bribery, cartels, forced labor and childlabor at all entities within the Group. In the field ofrisk management, we have prepared a risk mapwith respect to each country where G-TEKT has apresence, based on which measures against serious
risks are being promoted.

Environmental Approach Corporate Governance

G-TEKT conducts a questionnaire survey targeted at
Members of the Board who constitute the Board of
Directors and Audit and Supervisory Board Members on
the effectiveness of the Board of Directors, and shares
the survey findings with the Board of Directors.
Going forward, we will look into measures to makefurther improvements to raise the effectiveness of theBoard of Directors based on the survey findings.

Relationship with Society

G-TEKT has adopted an audit and supervisoryboard system. The Audit and Supervisory Board
is comprised of four Audit and Supervisory Board
Members (consisting of two fulltime Members andtwo Outside Members), who attend meetings ofthe Board of Directors in accordance with auditing
policies, division of operations, etc. determined at themeeting of the Audit and Supervisory Board. Audit
and Supervisory Board Members also investigate
the status of operations and assets, and audit theperformance of duties of Members of the Board incollaboration with the Accounting Auditor.

Evaluation of Effectiveness of the Board of Directors

Third-Party Opinion

Functions and Composition of the Audit and Supervisory Board

G-TEKT’s
CSR Management

In order to strengthen the management structure toenable rapid response to changes in the businessenvironment, we have required that officers in chargeof execution of operations be executive officers hired
under a delegation agreement (with a term of office of
one business year) and clarified their respective roles
and responsibilities for the execution of operations.
Furthermore, in an effort to accelerate the management
decision-making process, we have established the
Executive Board consisting of members who areranked equal to or higher than division directors as
an organ that deliberates matters before the Board of
Directors. Having streamlined the Board of Directors by
reducing the number of Members, we have adopted
a system of appointing multiple Outside Members of
the Board and built a structure that focuses on thefunction of monitoring and overseeing the directionof management and the execution of operations by
Members of the Board.
Lately, self-evaluation of the effectiveness of theBoard of Directors which is conducted each businessyear has served as a good opportunity to performperiodic structural review. We are also promoting theestablishment of global governance in consideration of
the importance of group-wide administration including
not only Japan but also overseas.

CSR activities

At G-TEKT, the Board of Directors is regarded as
the decision-making body for management policies
and strategies for the future as well as an operations
oversight body. The Board of Directors, which consistsof nine Members of the Board (including two Outside
Members), is convened periodically or whenevernecessary. The Chairman of the Board—whose
principal role is to oversee management—presides
over the Board meeting, where resolutions are
passed in regards to matters prescribed by laws andregulations, the Articles of Incorporation and the Rulesof the Board of Directors and important management
decisions are made. The Board of Directors also
receives reports on operations from each Memberof the Board and executive officer, and performs
monitoring and supervisory functions.
G-TEKT has also established the Board of Directors’
Advisory Committee, which is mainly comprised of
the President and Independent Outside Members of
the Board. The advice of the Advisory Committee issought as appropriate by the Board of Directors withrespect to important agendas such as the selection ofcandidates for officers.
The term of office of Members of the Board is set
at one year, so that the management structure can beformed flexibly in response to changes in the businessenvironment.

CSR activities

Efforts to Enhance Corporate Governance

CSR activities

Functions and Composition of the Board of Directors

18Introduction

CSR activities
Corporate Governance

Environmental Approach Corporate Governance
Relationship with Society

Compliance Structure and Risk Management Structure

Risk Management Efforts

G-TEKT has established the Corporate GovernanceCommittee consisting of a compliance officer andrisk management officer in-house, for the purpose ofbuilding a sound business operation structure thatcomplies with various relevant laws and regulations
upon promoting business activities and is capable ofproperly tackling conceivable business risks. We havealso established the Compliance Sub-Committee
and Risk Management Sub-Committee which consistof the respective officers and working-level staff incharge, in an effort to develop compliance and risk
management structures.

We are striving to identify, analyze, and appropriately
control the various risks surrounding our businessin order to ensure sound execution of our businessactivities. Although the risks related to ourbusiness 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 purpose of ensuring
the appropriate monitoring of risk situations,companywide measures regarding risk management
issues, and horizontal deployment of measures.

Compliance Efforts

Formulation Status of Business Continuity Plan (BCP)

Since we have the highest respect for compliance,
we endeavor to act conscientiously at all times incompliance with every law, internal regulation, andany other rule as a matter of social norm. Looking
at compliance from the perspective of meeting the
expectations of our stakeholders, we have established“Our Code of Conduct” as the code to be followedby each employee so as to act with high ethicalstandards, and we are ensuring that our employees
are familiar with the Code. In addition to activities
that promote the spread and establishment ofcompliance, we will engage in ongoing improvement
to prevent and/or promptly address scandals as wellas ensure信頼compliance,
as we strive to raise the level
を確
かな
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にす
of compliance further.
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responsibility (social responsibility), we are
implementing, maintaining and managing a business
continuity plan (BCP) that we have formulated at eachbusiness location in Japan, in order to quickly resume
the supply of merchandise and provision of services,and to protect the interests of our stakeholders(e.g., customers, suppliers, local communities,
shareholders, employees) even under difficult
circumstances in the event of a large-scale disaster.

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電話を解 堅実経営
わたしは、すべての法律および社内規程等を遵守し、社会規
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
員が ン
のた
』と
た
受け
決で ち 一 人
月～ －04をしてめに範と比較して常に誠実な行動をとります。
付け
担う ち一人を行い、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ひと
行動指針
金 12 2500
きる
ここ
求め
※
ま
ひ
（
責
祝
り
よう
す。
と
任
に定
祭日 ：00 フリ
られられりしません。
FA Xにな が 交通安全窓、年 ～21 ーダ
めまて い ある企 りの日る行
末年：00 イヤ
らな
0120
頃の
した
業の
動を
るこ
の行
ル
始を
『わ
行動
自動車部品メーカーとして安全運転のリーディングカンパニー
。
－09
行
とを
動指
除く 土 9：）反社会的勢力の排除
たし
は、
5006
忘 れ 動とし
針』
。
ひと
ht
00
であるために
tp
（
～17
自動
を全
て
健全な経済活動と社会の発展のためにてはり
フリユー s://w
WEB
：00
車産
口
社で
ーダ
な り 、常によ り が実践
わたしは、交通ルールを守り、安全運転に努めます。
ザー ww
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
業
イ
、
共
※
.d
す
ま
確
ID
ヤ
の
ia
ロ
社会
有し
る
せん
ル）
l-sou
かな
一翼
骨格 経営ビジョン会 社 グイン gtektから、指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。こdan.
も の ことで
時に
環境保護
部品
ID
見
針
jp
、
※
パ
の
と
必
つ
『
に
入力 gtekステ
メー
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。
要で スワー /et/gt
安全・環境に即した先進技術の追求を通じ、し、め
わた
地球環境の保護に積極的な企業であるために
フォ tーク 基 づ い
す。
ド
カー
存在
した
ーム
gtekekt/
た行
車体骨格部品メーカーとして世界トップを目指す。
ホル
の世
●も
を期
わたしは、環境への負荷軽減と排出物および廃棄物の積極的な再
ち
で必
trinr
動
ダー
界ト
し困
要で
i
官公庁との関係から を 一 人
資源化に努めます。
ップ 待 さ れ
った
す。
日常
る
の信
とき
生活
自立した企業として、官公庁と健全な関係を保つために
株を
主目
総会
する
頼を
指し 企 業 とがあこと で は 行
ていして
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
った
わ社会貢献
報告
取締役・監査役選任
たし があり 動 指 針
きま
ら…
車体
経
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たち為は行いません。
に
ま
しょ
違反
営
。社 触 れ てして の常識 す「う。
取締役会
監査役会 会計監査人
もしわたしは、企業活動を通じて、社会の一員として社会貢献活
会規
管
い
い
が
、判 ないか 社会範」 な い 様理
監査動へ積極的に参加します。
のコミュニケーション
は
問
断
常
々
常
時
い
内部統制
機
に
識
な
代
かけ に迷
基本方針
報告・上程
った 注意し とかけ と共に ケ ー
構
社会との融合と調和を図るために
てく
策定
監
場合
なけ
情報管理
離れ
G-TEKT変化 ス と 遭
ださ
査
は、
れ
て
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、しい。
フィロソフィー
お客様や取引先からの情報を適切に管理するために
わた ばなり いない ます。 遇
地域社会からの苦情に速やかに対処します。
したか、ませ
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
法律
ちの
ん
経営会議
に
良識 。
共に、社内規程等に則り、インサイダー取引は行いません。
を自代表取締役社長

Establishment of Two Corporate Ethics Offices(Corporate Ethics Hotlines)

めに

方針展開

執
行
の
内
部
統
制
シ
ス
テ
ム

具
体
化

報告・上程

業務監査室

コーポレート・ガバナンス委員会
方針
展開

報告・
上申

コンプライアンス
小委員会
施策展開・
推進・提言

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

わ

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。

安全衛生

分自

身に

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。

ハラスメント

生き生きとした職場であるためにわたしは、職場におけるセクシャルハラスメント、パワーハラス
メントなどのいかなるハラスメントも許しません。

公平

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。

プライバシー保護た

行 動し た ち の指針

わたしたちの行動指針

G-TEKTフィロソフィー

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。

時間管理

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。

報告義務

透明性の高い企業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201
1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
201 年10月
4年
理改善提案窓口に報告いたします。
１日

We have established an internal whistleblowing office
to take calls from employees seeking advice andreceive proposals on various problems that arise at
the workplace, in addition to violations of laws andregulations and breaches of internal regulations andthe Code of Conduct in corporate activities.
Also, in order to develop an environment where
it is easier to seek advice, we have established an
external advisory office where an adviser outside of
G-TEKT receives calls. Proposals are also accepted
anonymously to protect the proposer, so that he/shewill not be subject to unfair treatment.

２月

グローバル

１日 発行
改定

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、宗教、生活様式等を尊重します。

署名：“Our Code of Conduct”

Third-Party Opinion

CSR activities

CSR activities

CSR activities

G-TEKT’s
CSR Management

Financial andNon-financial Highlights

Feature Article

Corporate Data

Message fromthe President

Compliance and Risk Management

Corporate ethics hotline

19

Introduction

Regarding disclosure to shareholders and investors,
we are conducting disclosure operations and IR
activities on a daily basis with a commitment topromptness and fairness.
Furthermore, in the belief that it is important for us
to communicate proactively with our shareholders
and investors in order to deepen their understandingof G-TEKT as a company, we organize company
information sessions for individual investors, plant
visits for shareholders and other events, in addition to
the shareholders’ reception at the general meeting ofshareholders, financial results briefings for institutional
investors and individual IR visits, in order to provide
opportunities for the top management to converse inperson with the shareholders and investors.
Additionally, we update our home page in a timely
manner, issue shareholder newsletters and sendout other information in an effort to further deepen
our shareholders’ and investors’ understanding of
G-TEKT’s business activities, while studying ourevaluation obtained primarily through shareholder
surveys and our share price information as we seek
to achieve the ideal state as a company.

IR website

https://www.g-tekt.jp/ir/index.
html

Shareholder Newsletter

CSR activities

Confidential information of our clients and our own
company, personal information of our employees, andvarious other information that must not be divulged tothe outside world exist in vast amounts in the courseof our business operations. Since it is believed thatthe leakage and other mismanagement 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.
Regarding the method of education, it is disseminatedthrough company news letters and reading of the “TenCommandments of Information Management”, whichsummarize the gist of the security policies.

CSR activities

Education on Information Security

Environmental Approach Corporate GovernanceA plant visit for shareholders

CSR activitiesA ll actions shall be taken with the understanding of the risks of
information leakage.
G-TEKT employees worldwide shall manage information andprevent 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 beshared worldwide, reflected in the security policies, and used toprevent the occurrence or recurrence of information leakage at
G-TEKT.
The approach as set forth in the security policies shall beobserved 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
future needs.
The security policies shall be reviewed and revised constantly.

Relationship with Society

The fundamental policies for protecting the Company’s
information assets shall be set as follows:

Third-Party Opinion

Fundamental Policies

Message fromthe President

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 andtrends over time.

Corporate Data

Communication with Shareholders and Investors

Feature Article

Objectives and Fundamental Policies on Information Security

Financial andNon-financial Highlights

Stakeholder Engagement

G-TEKT’s
CSR Management

Information Security

20

Introduction

CSR activities
Environmental Approach

Environmental Management
Message fromthe President

G-TEKT is endeavoring to reduce its environmental burden associated with its business activities, based on theview that conservation of the global environment is a matter of top priority.
Environmental The Company places the highest priority on the conservation of the global environment andPhilosophy
local environments. As a member of society responsible for passing on the green Earth to the

Corporate Data

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
PoliciesT he Company shall assess the environmental impact of all its business activities, voluntarily formulate
improvement plans, and actively work on environmental conservation.

Feature ArticleT he Company shall comply with related environmental laws and regulations and other requirements andestablish its own management standards to prevent environmental pollution.
T he Company shall define purposes, set goals and formulate implementation plans for its environmental
protection activities, and reduce its environmental burden by engaging in ongoing improvement, and conductbusiness in harmony with the environment. Furthermore, the Company shall review and revise the purposes,
goals and plans as necessary.

Financial andNon-financial HighlightsT he Company shall ensure all employees and all people working at the Company are aware of and understandits environmental policies by providing them with environmental education and training activities.
T he Company shall disclose its environmental information to the general public. The Company shall conduct
activities aimed at achieving a deeper level of communication with the community and society at large andactively cooperate in community- or society-based environmental conservation activities.

Corporate Governance
Relationship with Society Environmental Approach

G-TEKT considers the global environmental issue tobe a problem of the highest priority that should be
addressed by a company and has been working toacquire the ISO 14001 environmental management
system (EMS) certification since 1998. Each plant ismaking ongoing efforts to promote environmental
compliance and improvement activities on an ISO
14001 EMS Environmental Committee basis withthe 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 the plants
and two additional business locations, specifically the
Head Office and C&C Tochigi, to manage mattersrelated to company-wide global environmental
improvement activities.
Last year, we worked on transitioning to the revised
2015 ISO14001 at each business location to addressenvironmental management more strategically.
Consequently, we completed the transition of thecertification at all domestic and overseas businesslocations (100%) as of April 2018.
Furthermore, since April 2017, we have been
holding the “Global CSR Conference” periodically inan effort to strengthen our environmental management
worldwide as well as to share information with each
Director of each overseas division serving as a personin-charge.

G-TEKT Domestic Environmental Management Structure

Global Environmental Management Structure
Japan

Central Environmental Promotion Committee
Chief Environmental Manager (Director, Production Division)
Environmental Management Promotion Manager (Deputy Director, Production Division)

Chief Global
Environmental Manager
Chairman ofCentral Environmental
Promotion Committee

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

Secretariat of the Plant
Environmental Committee
Members

Secretariat

Secretariat,
Central Environmental
Promotion Committee

South America Chief Regional Environmental Manager
Chief Operating Officer for Regional Operations (South America)
EuropeChief Regional Environmental Manager
Chief Operating Officer for Regional Operations (Europe)

Asia

Chief Regional Environmental Manager
Chief Operating Officer for Regional Operations (Asia)

China

Chief Regional Environmental Manager
Chief Operating Officer for Regional Operations (China)

Percentage of sites with ISO14001:2015 certification(based on number of business locations)

Secretariat of the Business Location
Environmental Committee
Members

Chief Regional Environmental Manager
Director, Production Division

North America Chief Regional Environmental Manager
Chief Operating Officer for Regional Operations (North America)

Regions

CSR activities
Third-Party Opinion

CSR activities

CSR activities

G-TEKT’s
CSR Management

G-TEKT Group’s Fundamental Policies on Environmental Management Structures

Japan:

67%

Overseas:83%* All production plants in Japan have transitioned to the revised ISO14001:2015 (100%).

21

Introduction
Message fromthe President

G-TEKT Environmental Road Map[High-Priority Corporate Goal][Environmental goals of each business location]

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

Reduction of environmental burden andenvironmental risks

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

FY2018FY2019TargetImprove by 9% (from FY2013)

Improve by 9% (from FY2013)

Improve by 9% (from FY2013)

ActualImproved by 2.3%

Set target and implement reduction activities

Continue reduction activities

Continue efforts

Continue efforts

Acquire certification in expanded examination

Maintain certification

Continue efforts

Continue efforts

Issue CSR Report 2018

Issue CSR Report 2019

Reduction of usage of water
resources

TargetMake preparations to set target

ActualResearched past results

Financial andNon-financial Highlights

Assessment

Corporate

Had no environmental issues

TargetMake preparations

ActualReviewed documents

Assessment
TargetAt least one activity per plant

ActualImplemented forestation activities, etc.

Corporate Governance

Establishment of community
contribution activities(Biodiversity measures)

ActualAssessment

Assessment

activities
Dissemination of information
to society

TargetIssue CSR Report 2017

ActualIssuedAssessment

Material Flow (*Actual figures for FY2017)
INP UT

Environmental Accounting
OUT PUT

G -T E K T

EnergyLPG

100 t

Design &Development

Heavy oil A

184

Sales

Diesel oil

56

Kerosene

34

Electricity

39,457 MWh

Administration

Water resources
Clean water

58,538 m

3

Raw materials
Iron¥
Gasoline

15,944 t-CO2

Business area cost

Production

142,859 t

Pressing & Welding
Machining & Processing

91

Internal transport (Corporate vehicles)

40,977 m3

Industrial waste (quantity generated)
597 t

CO2

212 t-CO2

Expense amount

19.1

31.8

3.8

1.6

(Global environmental conservation cost)

15.3

25.6

—

4.7

5.3

73.2

Administration cost

—

67.7

R&D cost

5.5

65.5

Social activity cost—

7.1

Environmental remediation cost

—

—

29.9

245.3

Upstream/downstream costs
Drainage

Investment amount(Pollution prevention cost)(Resource recycling cost)

Purchasing

1

Gasoline

CO2(Million yen)

FY2017Total* Data was collected by including business locations in Japan into thescope of environmental accounting by using “Environmental Accounting
Guidelines 2005” of the Ministry of the Environment as reference.

Environmental Approach

Acquisition of 2015 ISO
14001 EMS certification(Headquarters, GTL, C&C
Tochigi)

Comply with environmental
laws and regulations
Achieve zero leakage and zerocomplaints

Relationship with Society

Environmental
management

TargetThird-Party Opinion

Prevention of noise, vibration,water pollution, soil pollution,
atmospheric pollution, waste
disposal, and other environmental problems

G-TEKT’s
CSR Management

Assessment

CSR activities

Production

FY2017

CSR activities

Reduction of greenhousesgas (GHG) emissions per unitof salesThird Mid-term Target and Actual Figures

Target/ActualDescription

CSR activities

Area

Feature Article[2020 Vision G4-20]

Corporate Data

We are establishing environmental goals and engaging in ongoing improvement activities
pursuant to environmental activity plans designed to achieve the goals.

22Introduction

CSR activities

Message fromthe President

Environmental Approach

Feature Article

Corporate Data

Reduction of Environmental Burden
Reduction of Greenhouses Gas (Japan)

Reduction of Greenhouses Gas (Global)

We engaged in efforts to reduce our CO2 emissions inJapan, setting our target at an annual reduction rate of
1% relative to the FY2013 level in terms of emissions
per unit of sales.
In FY2017, the impact of the increase in mass
production sales resulted in an increase in CO2emissions by 71t, while emissions per unit of sales
decreased by 2.3% compared to FY2013. Goingforward, we will work on achieving the targets bypromoting energy saving in air conditioning facilities,
boilers, etc.

We commenced our global efforts to reduce our CO2
emissions, setting our target at an annual reduction
rate of 1% relative to the FY2013 level in terms ofemissions per unit of sales. In FY2017, increased
mass production sales in China and Asia resulted in an
increase in CO2 emissions by 7,499t, while emissions
per unit of sales decreased by 1.7% compared to
FY2013 due to the impact of the exchange rates. We
will continue our efforts to reduce greenhouses gas bymaking energy-saving efforts on factory ceiling lights
and air conditioning facilities.

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

130

100
20,000Financial andNon-financial Highlights

16,177t

94

98

15,812t

15,838t

16,084t

16,155t

Corporate Governance
Relationship with Society Environmental Approach

2014

2015

2016

Emission per Unit of Sales

100

104,915t

92

90

99

114,954t

117,640t

102,812t

90,000
Headquarters, etc.
Technical Division
Gunma Plant
Hamura District
Saitama Plant
Tochigi Plant
Shiga Plant

2013

Third-Party Opinion

120,00060

0

CO2 Emission (t-CO2)

150,000

95

5,000

G-TEKT’s
CSR Management
CSR activities
CSR activities

92

10,00012098125,139t
Japan

North
America

60,000Asia

30,0000SouthAmerica
EuropeChina

02017 (FY)

60

2013

2014

2015

2016

2017 (FY)

Reduced Usage of Water Resources (Japan)

Reduction of Waste Materials (Japan)

Water resources are used primarily as machinery
coolant water at production sites. We are striving to
reduce water risks by engaging in activities to reducewater usage.

We are promoting activities to reduce waste materials
through 3R (reduce, reuse, recycle) of unnecessary
materials.
Since the previous fiscal year, we have changed thebasis of measurement to the amount of paid wastematerials.

Quantities of Water Resources Used

Water Usage (m2)

80,00060,000

CSR activities88

15,00023

Change in Global CO2 Emission and Emission per Unit of Sales

Emission per Unit of Sales

25,00057,401

54,23256,00955,943

Amount of paid waste materials (t)1,000

58,538500

20,000

0

2015

2016

682

652

C&C Tochigi
Gunma Plant
Saitama Plant
Hamura District
Tochigi Plant
Shiga Plant

2014

756

750

40,0002013

Amount of paid waste materials

2017 (FY)477

537
C&C Tochigi
Gunma Plant
Saitama Plant
Hamura District
Shiga Plant
Tochigi Plant

250

0

2013

2014

2015

2016

2017 (FY)

Eco Test (Certification Test for Environmental Specialists®*)

Green Procurement Efforts

G-TEKT recommends that employees pass the Eco
Test (Certification Test for Environmental Specialists®)
as an opportunity for each and every employee todeepen his/her understanding of environmental
problems and improve his/her environmental
knowledge. In FY2017, G-TEKT produced ten “ecopeople” (those who passed the Eco Test).

We are aspiring to contribute to the realization of asustainable 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 are made withthe appropriate use of chemical substances using
processes resulting in less environmental burden andcontribute to the conservation of the ecosystem, fromsuppliers who are active in environmental conservation
activities.

* The Certification Test for Environmental Specialists® is a registered trademark of The
Tokyo Chamber of Commerce and Industry.

Introduction

Development of Environmentally-friendly Products and Technologies
Message fromthe President

G-TEKT is seeking to achieve sustained growth and evolution by contributing to society
through products with a low environmental burden.

1180MPa-class High Tensile Strength Steel Processing Technology

Feature Article

Corporate Data

Our auto body frame component using ultra hightensile strength steel, materials that are four times
stronger than normal steel plates (1180MPa-classhigh-tensile steel plate), has been adopted for the newmodel of N-BOX. The high strength of the material
allows plate thickness to be reduced, thus realizing
substantial weight reduction and contributing to
improved fuel efficiency. On the other hand, hardmaterials tend to return to its original shape during
press working, making advanced molding technology
a requirement. G-TEKT has succeeded in productcommercialization by overcoming this challenge with
its proprietary design concept and advanced molding
technology.

Financial andNon-financial Highlights

Front crossmember

250

food products. With this spraying system, which can ensure the optimal87%
reduction

200
150

application volume and range with merely six nozzles without affecting

100

quality, we succeeded in reducing drawing oil by as much as 87%. The idea

50

to use nozzles for food products as a substitute, instead of clinging to spray0

nozzles for metal working, has led to huge reduction effects.

BeforeAfter
improvement improvement

We are grateful for having received such anamazing award. We were thrilled to go up onstage and be applauded by everyone. Ouridea was to reduce drawing oil used during
press working. By reducing waste, you cancontribute to the environment.
Thinking of the result after having hadvarious difficulties, we appreciate thesupport many people gave us. We are proud
to have received this award, and we intend
to continue making efforts to protect theenvironment by trial and error.

Members of Oil Slickers (Left: Phil, center: Kaila, right: Jamie)

CSR activities

greasy. To resolve this, our attention was turned to the spraying system for

Corporate Governance

300

Environmental Approachturn, causing the problem of factory equipment, work clothes, etc. becoming

CSR activities

(ml)
350

CSR activities

oil uniformly, resulting in the application of more oil than necessary, and in

Quantity of drawing oil used

Relationship with Society

working and application of drawing oil. However, it is difficult to apply theThird-Party Opinion

Large pressing machines involve the use of 24 spray nozzles for metal

G-TEKT’s
CSR Management

QC Circle at Canadian Subsidiary: Oil Slickers
Honored at “Supplier Sustainability Symposium”(November 2017)
by Honda in North America 

24

Introduction

CSR activities
Environmental Approach

Financial andNon-financial Highlights

Feature Article

Corporate Data

Message fromthe President

Environmental Improvement Efforts

Installation of Plug-in Hybrid Cars andCharging Stations

At Shiga Plant, employees have voluntarily
manufactured a device that automatically separates
empty cans made of steel from those made ofaluminum. Their aim of manufacturing the separator
by drawing upon their own wisdom and creativity was
to brush up their skills that are also applicable to the
production site.
This automatic separator first separates steel andaluminum automatically by exploiting their respective
metallic properties, then crushes the cans one by one
by applying pressing technology. This has enabled thecollection of many empty cans at once.
The device even has the function to
expel any half-finished cans or bottles
without crushing them, even if they arethrown in the device.
This has given employees agood opportunity to learn the art ofmanufacturing, and at the same time,
improve their environmental awareness.

At the U.K. plant, we replaced eight company vehicles with plug-in hybrid cars as part of our measuresagainst global warming. The Company decided totake the initiative to introduce vehicles with a low environmental burden in response to employees’ opinion
that G-TEKT be a company that gives consideration
to the global environment.
At the charging station adjacent to the entrance ofthe plant, recharging is free of charge for employees;
this has gradually prompted them to switch to plug-in
hybrid cars.

Creation of Renewable Energy

CSR activities

Corporate Governance

CSR activities

Relationship with Society Environmental Approach

G-TEKT’s
CSR Management

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

Third-Party Opinion

CSR activities

Automatic Steel and Aluminum Separator

Saitama Plant Solar Power Station

Gunma Plant Solar Power Station

Shiga Plant Solar Power Station

Grid connectioncommencement date

March 31, 2014

April 25, 2014

December 5, 2014

Photovoltaic cell
capacity

1,605 kW(245 W × 6,552 panels)

1,306 kW(245 W × 3,920 panels,
250 W × 1,386 panels)

602 kW(245 W × 2,408 panels)

Maximum power
output1,500 kW
(PCS: 500 kW × 3 units)

1,000 kW
(PCS: 500 kW × 2 units)

500 kW(PCS: 500 kW × 1 unit)

FY2017 power
generation

1,627,302kWh

1,318,969kWh

740,825kWh

CO2 equivalent781t-CO2641t-CO2

377t-CO2

Domestic
locations

Solar power generation capacity (kWh)3,926,084

4,000,000

3,232,489

3,587,262

3,687,096

3,000,000

Shiga Plant

2,000,000

Gunma Plant

1,000,000

Saitama Plant

0

FY201425

Overseas Solar Power Generation

Change in solar power generation capacity

FY2015FY2016FY2017

At overseas business locations, we are also adopting theutilization of natural energy sources to the greatest extent
possible, and promoting the business of renting out roof
space and the use of electricity generated by solar power.
APAC and WAPAC in China as well as G-TTC in Thailand
have been consuming electricity in-house since adopting
solar power generation. G-TIP in India newly adopted solar
power generation in April 2018, and has been consuming
approximately 30% of the generated electricity in-house.

Introduction
Message fromthe President

Biodiversity Efforts

G-TEKT Biodiversity Guidelines

Pursuit of environmentally-friendly cutting-edge technologies
1 The
Company shall contribute to the conservation of biodiversity through thedevelopment and mass production of products resulting in one of the smallest
environmental burdens in the industry.

Feature Article

Undertakings related to business activities
2 The
Company shall reduce environmental burden through the pursuit of higher

production efficiency, as well as reduce the impact on biodiversity while striving toachieve the sustainable use thereof.

Communication with local communities
3 The
Company shall endeavor to interact with the local communities as well as

Have no expertiseor information onforestation activities

Forest Owners
Make forests available
Provide a place for exchange

Saitama Prefecture’s “Corporate Forestation” framework

Saitama Prefecture Forestation Agreement

Lake Biwa Forestation Partnership Agreement

Signing of Agreement

Signing of Agreement

Saitama Plant, Hamura District, Headquarters and Gunma Plant
On February 4, 2015, we entered into a “Saitama Prefecture
Forestation Agreement” with Saitama Prefecture and Tokigawa-cho.

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.

Activities and Achievements
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
G-TEKT Forestation activities in April 2015.
At the “Fifth G-TEKT Forestation” event held on April 15,
2017, we planted 160 young trees, and at the “Sixth G-TEKT
Forestation” event held in September 2017, we engaged
in underbrush-clearing activities. The number of forestation
participants totaled 78 employees.

Activities and Achievements
On March 2, 2018, we engaged in forestation activities, in which
14 Shiga Plant employees participated and planted 15 young
trees of Japanese cherries. On this occasion, a lattice fence
was installed around each cherry tree planted, as a measure toprevent damage caused by deer.

Corporate Governance

Saitama Prefecture
Supports forestation activities
Engages in PR activities
Certifies forest CO2 absorption volume

Environmental Approach

Signing of Forestation
Agreement

Hope to interact withcompanies, etc. andobtain forestation
supportRelationship with Society

Want to do something about thedeterioration offorests

G-TEKT’s
CSR Management

Provide funds for forest development
Provide labor for forestation, brush clearing, etc.
Use forests as a welfare program for employees, etc.

Third-Party Opinion

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

CSR activities

Companies/Organizations

CSR activities

G-TEKT’s Forestation Program

Financial andNon-financial Highlights

society at large by actively cooperating in the environmental conservation activities
and social contribution activities in partnership with the local communities.

CSR activities

Priority
Measures

Corporate Data

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

26

Introduction

CSR activities
Relationship with Society

Talent Development

Corporate Data

Message fromthe President

G-TEKT cherishes an environment in which employees can work with vigor and a corporate
culture that allows each and every employee to grow and thrive.

Policy on Talent Development

Respect for Human Rights

G-TEKT considers that talent is the most important management
resource and has established its policy to “provide all employeeswith opportunities for growth and assist in their voluntary
upskilling efforts” and “create talent that generates new value
towards the next era”, in pursuit of growth of both employees
and the Company.

G-TEKT sets forth the principle of respect for human rights in aleaflet titled “Our Code of Conduct”, carried by all employees.
It expressly states the need to not only comply with laws
and regulations, but also to respect the customs, cultures,
religions and lifestyles of all countries. It also prohibits all
forms of harassment, including sexual harassment and power
harassment. We do a read-through of “Our Code of Conduct”
once a year to thoroughly familiarize employees with its
content.

Training Scheme

Feature Article

We have established a development/training scheme aimed atdeveloping talent who are enthusiastic about taking on the challenge tolearn, think and grow of their own accord.
FY2017 Training Achievements

Financial andNon-financial Highlights

Scope

G-TEKT’s
CSR Management

Pre-employment training

17

Group training of new recruits

32

Follow-up training of new university-graduate recruits

13

Chief/team leader training (coaching)

28[Technical] training

27[Production] training

61

Training of newly-appointed assistant managers

12

Basic training for management

27

Training of newly-appointed managers

4

Practical training for management

22

Training of global leaders

26
4Managerial Training of female managers

4

Environmental Approach

Corporate GovernanceTraining of expatriate staff members

Relationship with Society

CSR activities
CSR activities

Mid-career

Rank-byrank training
sessions

Number of
persons

Name

JuniorThird-Party Opinion

CSR activities/Human Rights

27

Correspondence
education ande-learningAll
employees

Training of newly-appointed officers

2Life plan seminar

54

Program for improving basic English skills

200

Production meister159
2

Basics of financial statements

Number of Persons Dispatched to Language Training (Training period: One year or more)

Fiscal Year

2013

2014

2015

2016

2017

Male

4

3

4

5

5

Female

0

2

1

0

1

Total

4

5

5

5

6

Diversity
In the belief that diversity is the source of innovation, we viewthe differences in sex, nationality, work history, age, personality,
values and other external/internal aspects as the “individuality ofthat person” and respect them as such.

Women’s Participation and Advancement
G-TEKT is putting efforts into the “development of a female-friendly
workplace” and “career advancement of women”. To make it easier for
women who have given birth to go back to work, we have a short-timework scheme for employees to take care of children aged four and above(which is more generous than the statutory obligation). We also conduct
training of female managers and provide opportunities to acquireleadership skills and share information.

Employment of Disabled Persons
Since 2013, we have built a framework of cooperation with the regional
support center and made proactive efforts to increase the employment of
disabled persons as well as to expand workplaces where they can thrive.
We assist disabled persons to advance into society so that they can live
independently with pride through work.

Adapting to Working Style Reform
From the viewpoint of work-life balance, we have been making
efforts to reduce actual working hours since the previous fiscal
year. To begin with, we introduced an advance application
system for overtime work, and repeatedly notified employeesof the days on which they must leave the office on time, whichhave yielded results to a certain extent (down 11.4% year-onyear). The percentage of paid vacation taken has also improved
as a result of formulating an annual vacation plan (up 12.4%
year-on-year).
We also dramatically reviewed how work is being performed,
and in order to create more leisure time, we launched the“Productivity Improvement Project” this fiscal year and havebeen enhancing our efforts with the entire company acting asone.
Individual upskilling support schemes are also in place—e.g., we have created allowances for obtaining qualifications—to encourage employees to take on the challenge of improving
their various skills by utilizing the newly-created leisuretime. We will continue seeking the development of a work
environment that enables diverse working styles by addressing
each and every employee on an individual basis.

Company Implementing Diverse Working Styles “Gold + (Plus)”
In February 2018, G-TEKT obtained “Gold + (Plus)”
certification under the “Certification Scheme forCompanies Implementing Diverse Working Styles”
in Saitama Prefecture. Our various childcare support
schemes and track record of male employees’ taking
childcare absence from work have been highly rated.
“Company Declaring Promotion of Senior Employee Advancement”
In March 2018, G-TEKT was certified as a “Company
Declaring Promotion of Senior Employee Advancement”
by Saitama Prefecture.
We have been highly rated for ongoing employment,
clarification of wage standards, development of a work
environment in which employees can work with peace ofmind, and implementation of “Life Plan Seminars”.
Childcare Supporting Company: “Kurumin” Certification
In 2018, G-TEKT was certified as a “Childcare
Supporting Company” by the Minister of Health, Laborand Welfare. We will continue to support employees
in balancing childcare and work into the future, in
accordance with the Act on Advancement of Measures
to Support Raising Next-Generation Children.

Introduction
Organization Chart of Central Safety and Health Committee
Central Safety and
Health Committee

Since safety and health activities form the foundation of
corporate management, we will aim to achieve a work
place that we can be proud of by managing 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.

G-KTB in Brazil
A week is specified as “Safety Week”
each year in an effort to maintain asafe work environment. We also holdlectures approximately 30 times intotal on the theme of prevention ofindustrial accidents and safety & healthby inviting a lecturer from outside theorganization.
APAC in China
The medical room not only offers emergency treatment
but also has eye rinsing equipment installed. It isextremely popular among employees for removing dirt intheir eyes.

Tochigi
Plant

Shiga
Plant

HealthCommittee

HealthCommittee

Safety and HealthCommittee

Safety and HealthCommittee

Safety and HealthCommittee

Safety and HealthCommittee

Safety and HealthCommittee

The following efforts are being made centering on theCentral Safety and Health Committee.

Financial andNon-financial Highlights

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 (at least once a year).

Employee Safety Training
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.
In addition to the “Safety Convention”, we hold lectures
on traffic safety and occupational safety (at least 30 times
a year).

Hamura Office received certificate ofappreciation from the Tokyo Metropolitan
Police Department (December 2017)
Hamura Office received a certificate ofappreciation from the Tokyo Metropolitan Police
Department for having engaged proactively intraffic safety initiatives.
It received recognition for making significant
contributions to traffic safety in the region overmany years by proactively promoting traffic safetymeasures and endeavoring to properly manage
vehicles.

Two employees at Hamura Officeparticipated as representatives in
the ceremony

G-TEKT’s
CSR Management

Safe Driving Initiatives for Forklifts
At G-TEKT, we have introduced a unique in-house driving
license system in which workers who have a certificate
for completing the forklift operator training course are
given an annual examination, in an effort to make them
perform their tasks with more advanced skills and greaterawareness of safe driving.

Ceng Xueli Staff in charge of health management, Plant I
We have set up a health management notice board in theplant’s medical room and corridors, and engage in activities
to raise awareness of health management at the morning
assembly. In daily safety patrols, we check whether andhow employees are wearing protective gear, and give
guidance on such matters as how to put them on.
Li Fang Staff in charge of health management, Plant II

Corporate Data
Gunma
Plant

Feature Article

Hamura Plant
1/2/3
HamuraOfficeCSR activities

Overseas Efforts

Saitama
Plant

Corporate Governance

5. The Company shall appropriately allocate management
resources to the execution of safety and healthrelated activities to ensure effective and continuous
improvement.

C&C
Tochigi

CSR activities

4. The Company shall strive to raise awareness on safety
through the education and training of its employees.

Omiya
Headquarters

Environmental Approach

3. The Company shall establish communication, not onlywith all its employees, but also with the cooperating
manufacturers and other parties concerned, in order
to conduct safety and health-related activities with theparticipation of all parties.

General Manager, General Affairs Department

CSR activities

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 “accidentfree” to a safe and comfortable “danger-free” workplace.

General Secretariat

Relationship with Society

1. Efforts shall be made to further manage safety andhealth in compliance with the relevant safety and healthlaws and regulations, and internal standards.

Chairperson
2 Vice-chairpersons

Third-Party Opinion

Safety and Health Policies

Message fromthe President

Occupational Safety and Health28

Introduction

CSR activities
Relationship with Society

Corporate Data

Message fromthe President

Quality Improvement Efforts

Policies on Quality

Implementation of QC Activities

The Company shall create and provide products that delight andinspire customers, placing the highest possible quality at the coreof its management principles.

The G-TEKT Group voluntarily and actively conducts circle activities (activities in small groups) aimed at learning quality control(QC) methods for the continuous management and improvementof the quality of products, services, work, etc.
Activities are conducted in an organized manner in pursuitof further enhancement of activities, with managers serving as
supervisors.

Quality Assurance System

Feature Article

We have established the “1 assurance system, 1 manual” rule atall 21 G-TEKT locations in order to produce high-quality productsthat bring about customer satisfaction. Furthermore, with eachbusiness location following this rule, horizontal deployment of thequality assurance system is rendered possible, thereby allowing
the system to extend to all locations and contributing to thequality assurance not only of the production activities, but also of
distribution and logistics.

Financial andNon-financial Highlights

Quality Management System Based on International Standard ISO/TS 16949
Quality Assurance Manager (TS/Manager)

Approx. 210 circles are engaged in activities, in six
regions around the world.
North America 8 locations(20 circles) Approximately 130 people

G-TAC
JIC
ATA

JEC
G-NAC
JSC

G-MEX

Europe 1 location(1 circle) Approximately 10 people

G-TEM
G-TIP

China 3 locations(68 circles) Approximately 500 people
Japan (85 circles)
Approximately 920 people

WAPAC
CKS
G-TTC
G-TEC

G-ONE
South America 1 location(16 circles) Approximately 100 people

G-KTB

G-TIM

G-TEKT
APAC
G-TEC2TGB

Asia 6 locations(21 circles) Approximately 200 people

Quality Manager (TS/Manager)

G-TEKT Circle World Conference

Top Management

Quality Assurance Manager

Relationship with Society

Environmental Approach

Corporate GovernanceDirector,
Production Division

Third-Party Opinion

CSR activities

CSR activities

CSR activities

G-TEKT’s
CSR Management

President

29

Directors of Business Administration Division, Sales Division,
Technical Division, Quality Assurance Division, Overseas
Business Division, and Officer in charge of Purchasing Division

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 Officer

Acquisition of IATF 16949 Certification
The ISO/TS 16949 standard is set to expire on September 14,
2018. As of April 2018, we are working with G-TEKT locations
worldwide that have acquired ISO/TS 16949 to make a transition to IATF 16949, a new quality management system in theautomobile industry, before the current standard expires in 2018.
Once the transition is complete, we will be able to satisfy thequality requirements of our customers with even more advanced
quality management.

Every year in autumn, QC circles selected from all over the world
gather together in Japan for the G-TEKT World Conference. Examplesof activities are shared worldwide to demonstrate synergies andenhance communication among business locations around the world.
At the seventh G-TEKT World Conference, Shiga Plant’s Mujinkun Circle won the highest award. For
G-TEKT’s first unmanned production
line, the Circle eliminated problems,
engaged in improvement activities in all
steps from its launch to mass productionand established its highly cost-effective
Presentation given
production structure.
by Mujin-kun Circle

Sharing Quality Information Worldwide
The G-TEKT Group has a framework in place that enables
the sharing of quality information at all business locations ina timely manner, from the viewpoint of giving top priority toquality. A problem occurring at another business location istreated as a problem for the G-TEKT Group as a whole, notsomeone else’s problem; the Quality Assurance Operations
plays a central role in solving problems to improve quality.

Having been transferred from the Mold Technology Section to the Quality Assurance Section this year, I am in charge of reflecting past
glitches in the production preparation stage and operations such as process failure mode and effects analysis (PFMEA). The improvementin the quality assurance system of G-TEKT as a whole is being pursued by making the most of my experience as a former mold designer.
Wataru Yanagiya Quality Assurance Section, Quality Assurance Division, Quality Assurance Operations

Introduction

Communication with Suppliers

Suppliers’ Quality Award

In order to beat the tough environment as “Team G-TEKT”, weare endeavoring to enhance cost competitiveness, safety andquality by creating opportunities to share information with clientsat all times. As part of communication with our clients, we also
hold a convivial
gathering with ourclients every year,
in which G-TEKT’s
policies are
explained to them.

Given that quality management including suppliers is importantfor maintaining a high level of quality, G-TEKT conducts quality
improvement activities together with suppliers. We haveestablished the “Suppliers’ Quality Award Scheme” to express
G-TEKT’s appreciation and respect especially to suppliers who
have achieved quality targets, and to motivate other suppliers
to make quality improvements. In 2017, we granted the award
to two outstanding suppliers based on their performance in theprevious fiscal year. The Award Scheme has helped push up
the level of quality overall.

New Year’s reception for clients

Corporate Data
Feature Article
Relationship with Society

Measures against Conflict Minerals

Financial andNon-financial Highlights

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

G-TEKT’s
CSR Management

Activity Guidelines

Third-Party Opinion

Tin, tantalum, tungsten and gold (3TG) mined in the Republicof Congo and surrounding countries are called conflict minerals
due to concerns that they serve as a financial source for armed
groups, in addition to concerns of inhumane labor, child laborand human rights violations, etc. at the mining sites. While
the G-TEKT Group does not use these minerals directly, we
have been conducting investigations since 2013. Based oninvestigation findings, neither purchasing nor use of conflictminerals has been confirmed throughout the entire supply chain.
We will continue to conduct investigations on conflict minerals
into the future.

CSR activities

We will raise awareness on CSR procurement involving the use of
supplier status regarding efforts on compliance and eco-friendlinessas 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 andregulations.

Corporate Governance

CSR activities across the entire supply chain are
becoming important, including not only activities relating
to environmental problems but also those relating tocompliance with laws and regulations, respect for humanrights, occupational safety and quality. On top of the CSR
efforts we have made with suppliers to date, we established“G-TEKT’s Supplier CSR Guidelines” in April 2016 to further
clarify G-TEKT’s CSR approach and share it at a deeper
level, and have implemented them afresh, together with
G-TEKT’s Fundamental Policies on Procurement (Purchasing/
CSR Procurement Policies). We asked our main suppliers to
respond to a self-inspection questionnaire and conductedinterviews to evaluate their current status based on thequestionnaire. In the course of conducting interviews andcurrent-status evaluations based on the questionnaire survey
results, we gave feedback and took action including proposing
improvement measures aimed at identifying and resolving
issues in the supply chain. We will continue engaging in CSR
activities to enhance the supply chain together with suppliers.

CSR activities

In pursuit of customer satisfaction with respect to manufacturing,
G-TEKT shall engage in procurement activities in accordance
three fundamental policies:
1. Compliance and green procurement
2. To maintain a fair and healthy relationship with suppliers (from
Our Code of Conduct)
3. Mutual prosperity based on mutual trust

Environmental Approach

Publication of G-TEKT’s Supplier CSR
Guidelines

CSR activities

Fundamental Policies on Procurement(Purchasing/CSR Procurement Policies)

Message fromthe President

Supply Chain Management

Representatives of two award-winning suppliers with President Takao

30

Introduction

CSR activities
Relationship with Society

Social Contribution
Message fromthe President

The G-TEKT Group is engaged in social contribution activities to become a better partner to local communities
in regions where it conducts business activities, in order to realize a sustainable society. Our social
contribution activities are wide-ranging, including assisting environmental activities, regional beautification
activities and welfare activities, in addition to providing educational support for local students.

Financial andNon-financial Highlights

Feature Article

Corporate Data

Efforts in Japan
Gunma Plant

Shiga Plant employees cleaned Ohzuchi Dam’s
Blue River Park as a local environmental
beautification activity, in which 25 employees
participated and collected 32.5kg of garbage.
Shiga Plant employees also took part in theLight Down Campaign advocated by Ministry of
the Environment, and succeeded in reducing
power consumption by 119.6kwh in one day and239.2kwh in two days by turning off lights that could
be switched off for two hours from 8 p.m. to 10 p.m.
Shiga Plant is registered for the “Urban
Beautification Campaign (Machi-bika-katsudo)”in Koka City, where it carries out environmental
beautification in the self-designated areaaround the Plant, including not only picking
up garbage but also performing such tasks
as cutting grass at least four times a year. In
FY2017, Shiga Plant employees performed
environmental beautification five times.

In connection to the Safe Driving
Supervisors scheme in Gunma Prefecture,
Gunma Plant employees volunteer to callout to people to drive safely. During theperiod commencing two days before thespringtime National Traffic Safety Campaign
and ending two days thereafter, volunteers
chanted traffic safety slogans in commuting
time in the morning.
Every year, Gunma Plant employees
take on the challenge of creating a “green
curtain” by planting young plants of bitter
gourd. The plants, which grew densely andcovered the windows from corner to corner,
yielded a rich harvest of the fruit. The
harvested bitter gourd were offered to theemployees for their culinary pleasure.

G-TEKT’s
CSR Management

Tochigi Plant

Corporate Governance
Environmental Approach
Relationship with Society

CSR activities
CSR activities

Tochigi Plant was able to donate polio
vaccine for approximately 12 people
by delivering 11,080 PET bottle caps
collected at the Plant to Sakura City’s
Social Welfare Council.

Third-Party Opinion

CSR activities

Shiga Plant

31

C&C Tochigi
C&C Tochigi employees participate in
the “Sakura Festa” at Joho-No-Mori in
Takanezawa town, in which they help
set up the venue on the day before theevent and assists as administration
staff, etc. on the day of the event. It serves as a place to interact
with members of the local community as well as staff of othercompanies.

Saitama Plant
Employees of the Saitama Plant perform
weeding and cleaning activities along theroads surrounding the Plant, in an effort
to beautify the industrial complexes.

Hamura Plant
In cooperation and collaboration withthe local neighborhood community
association, Hamura Plant employees
participate in the “Full of Flowers
Project”, which involves planting flowers
in roadside flowerbeds. They also
performed the task of pulling out flowersthat have finished blooming, and engaged in cleaning activities
along the surrounding roads.

Overseas Efforts

China
APAC As part of an initiative to assist disabled persons in collaboration with the government, APAC has
subsidized the living expenses of disabled persons of the local neighborhood community association since 2011.
During the visit at the Mid-Autumn Festival, APAC employees deepened exchanges including celebrating withmooncakes, a tradition of the Festival. On the day of the visit, APAC received words of appreciation from thehead of the disabled persons administration center.
CKS Mingzhu Industrial Park, which is home to CKS, is located in an underprivileged area where theconditions of school facilities, etc. leave much to be desired. Students of the local school include many children
of CKS employees. CKS donated 2,000 books and eight book cabinets to the schools in hope that more children
will broaden their horizons by learning a wide range of things from books. CKS was thanked by the schoolmasterfor bringing joy to the children.
WAPAC WAPAC engaged in cleaning activities at a neighboring ocean park, not only to meet the
government’s request to improve the environment surrounding companies, but also to raise WAPAC employees’
awareness of 5S—i.e., Seiri (Sort), Seiton (Set in order), Seiso (Shine), Seiketsu (Standardize) and Shitsuke(Sustain). At WAPAC, 30 employees participated in performing such tasks as picking up rubbish and pruning
branches in the park.

Introduction
Message fromthe President
Corporate Data

Overseas Efforts

Thailand
G-TTC G-TTC has created an environment that makes donation activities highly
accessible to its employees. Last year, G-TTC employees donated cash, food and sweets to

Feature Article

a children’s orphanage in Kanchanaburi Province and deepened exchange with the children.
At the National Children’s Day festival hosted by Ayutthaya Province, G-TTC employees set
up a booth, handed out sweets, toys and other presents to children and interacted with thelocal children.

Financial andNon-financial Highlights

G-TEC / G-TTC G-TEC/G-TTC employees planted marigolds to express theircondolences with respect to the late King, who was loved by the people of Thailand. A flower
offering stand was installed inside the building, where all employees observed a moment ofsilence.

G-TEC G-TEC supports children who are going after their dreams. In the lead up to the
National Children’s Day, representatives of the welfare committee and employees donatedactivities, the activities have served as extracurricular lessons that are also applicable atlunch and conducted a factory inspection tour to show participants what G-TIP’s work involves.
In order to familiarize employees with the environment, trees were planted in the factory premises and aposter contest with the theme of the environment was held, in line with the World Environment Day. These
events served as a good opportunity for all employees to think about the environment.

Indonesia
G-TIM G-TIM is located in a region where, compared to urban areas, the population of theunderprivileged segment is high. Accordingly, G-TIM participates in voluntary club activities to donate
school supplies, etc. in the hope that children of the future generation will concentrate on their schoolwork,
regardless of wealth disparity. G-TIM is deepening friendly ties with local communities through its
participation in such programs.
Four teams consisting of 16 G-TIM employees participated in and ran towards the goal in the Jakarta
Kizuna Ekiden, an international event held for promoting friendship between Japanese and Indonesians
that also runs campaigns to assist the prevention of tuberculosis. G-TIM engages in medical contribution
activities through sports.

Environmental Approach

500 people participated. G-TIP presented awards to employees, held a game competition, provided a special

Relationship with Society

G-TIP In appreciation of its employees and their families, G-TIP held the FAMILY DAY event, in which

Third-Party Opinion

India

Corporate Governancetheir homes.

CSR activities

vegetable plants together with local school children. For children who participated in the

CSR activities

To familiarize children with G-TEC, employees engaged in activities to plant young

CSR activities

G-TEKT’s
CSR Management

crayons to 15 local elementary schools.

32Introduction

CSR activities

Message fromthe President

Relationship with Society

Corporate Data

Overseas Efforts

United States
JSC JSC carried out a project in which items written by children on decorations of an angel were

Feature Article

purchased and delivered by compassionate employees as a gift to them.

ATA As activities to contribute to the local community, ATA contributes scholarship funds to a local highschool and engages in activities to provide educational support to students. Having continued these activities

Financial andNon-financial Highlights

for 15 years, ATA is committed to continuing them into the future.

Corporate Governance
Environmental Approach
Relationship with Society

Third-Party Opinion

CSR activities

CSR activities

CSR activities

G-TEKT’s
CSR Management

Brazil33

G-KTB G-KTB sponsored the replacement of lawn at a local facility to make contributions to the local
city in which it conducts business activities. G-KTB has received not only a compliment “Wonderful” but also
a letter of appreciation from the local mayor. G-KTB has also received words of appreciation from membersof neighboring local communities.
All children have the right to become happy. To this end, G-KTB collected donations from employees inthe “Happy Children Campaign” and delivered gifts to an orphanage. G-KTB employees gave presents to thechildren in person and deepened exchange with the staff members.
In order to provide livelihood support to the underprivileged people, G-KTB donates food and clothing
contributed by its employees and the Company to a social welfare fund, and delivers the donated items to
the social welfare fund. G-KTB also donated food and clothing to charity organizations, which were received
by 23 families.
G-KTB holds an environment contest to raise environmental awareness among its employees and theirchildren. G-KTB not only sought submissions of environment-related pictures and essays to the contest,
but also conducted factory inspection tours. It was an extremely precious experience for the children who
participated in the event as they were able to see the company where their parents worked.
* G-KTB in Brazil conducts an investigation on facilities to ensure that no bribery, misappropriation or other such acts are
performed before engaging in activities.

United Kingdom
G-TEM G-TEM ran a fundraising drive for support groups of cancer patients and heart disease patientsto enable people to undergo periodic medical checkups free of charge or at a low fee. G-TEM employees
donated the proceeds from the sale of cakes and confectionery baked and sold by them. As some employees
suffer from these diseases, G-TEM is committed to supporting them together with support groups throughfundraising drives.
G-TEM, which has been conducting company inspection tours as part of a lesson for local university
students, invited students, gave a presentation on the Company and took them on a factory inspection tour.
G-TEM will find young talent who will play a leading role at G-TEM in the future by communicating closelywith local communities through the support it gives to schools and its students, and will continue making
efforts to build a good relationship with them.
When G-TEM received a request to repair a damaged fence and incidental facilities at aneighboring elementary school, which had been dangerous to children, G-TEM employees rushed
to the site and repaired them. G-TEM is committed to engaging in activities on an ongoing basis tobuild a good relationship with local communities by cooperating even on the most trivial matters.

Introduction

Third-Party Opinion

Alterna Research Institute
Alterna Co., Ltd.
(Visiting ESG Analyst, NLI Research Institute)

Corporate Data

President and Chief ESG Analyst,

Secretariat of CSR activities:
Corporate Business Planning Division

Financial andNon-financial Highlights
G-TEKT’s
CSR Management
CSR activities

Corporate Governance
Environmental ApproachOn the other hand, the inadequate arrangement of information
has made the content of the Report somewhat difficult to understandin regards to the relevance of some of the information with otherinformation, and in terms of individual issues. The opinions we havebeen given will be treated as a reflection of the expectations placedin G-TEKT and utilized as reference in future CSR activities and thetask of editing reports on CSR activities.
Going forward, we will continue to proactively push ahead
with our CSR activities with the aim of achieving sustained growth
together with society, and improve our CSR Reports to make themeasier to read and understand for our stakeholders.

CSR activities

We would like to thank Mr. Kawamura for his valuablecomments and opinions on G-TEKT Group’s CSR Report
2018.
Last year, we engaged in activities by putting our thinking
cap on together with the management as to how we shouldlink CSR activities and business activities to each other, andimprove corporate value while creating social value. As far
as information disclosure is concerned, we believe that it isimportant to improve the transparency of the Company bysharing various information with stakeholders. Upon editing
the latest CSR Report, we enhanced financial and nonfinancial information and reviewed the layout of the Report,
for the purpose of disclosing information more aggressively
than ever before.

Relationship with Society

In Response to the Third-Party Opinion

Third-Party Opinion

Content of the CSR Report: Global risks should be recognized
The Message from the President shows the strong commitment towards realizing a sustainable society by solving social issues throughcore operations. Notably, G-TEKT has declared to contribute towards environmental conservation and realize corporate value andsocial value simultaneously by weight reduction and rigidity improvement in the process of transitioning from an automotive component
manufacturer to an automotive body manufacturer.
Also, in the identification of material issues, it is commendable that the social impact of business activities has been identified.
However, the impact may either be positive or negative, and in the context of “human resources development”, in which utmost efforts arebeing made, due consideration needs to be given to the working style and work-life-balance of employees as well. This means that not only
compliance but also human rights/labor are potential serious risks.
In regards to Sustainable Development Goals (SDGs), G-TEKT has declared to contribute towards the achievement of SDGs and linked
the material issues to targets, but it should clearly state which ones are the targets. The “SDG Compass” identifies positive and negative
impacts by mapping of companies’ value chain, and recommends that numerical targets be set for 2030.
For example, G-TEKT’s greenhouses gas (GHG) reduction target (i.e., reduction of 1% per year in terms of emissions per unit of sales)cannot be deemed ambitious; setting a long-term total emissions reduction target is a task that needs to be addressed urgently. Times
have changed, from the era of low carbon to zero carbon. I hope the Global CSR Conference will be held with this in mind.

Feature Article

Structure of the CSR Report: Scenario-oriented PDCA report is desired
Taking a look at the structure of the Report, it begins with Message from the President, followed by Company Overview, a feature article
on Innovations, Financial and Non-financial Highlights, Fundamental Policies on CSR and CSR Management, and a detailed explanationof individual activities. Overall, disclosed information is richer in both quality and quantity than in the previous fiscal year, reflecting theenthusiasm towards CSR. In particular, the practice-focused Message from the President, explanations of material issues in concreteterms, the appeal of Our Vision, and enhancements of non-financial indicators are to be applauded.
The detailed explanation of individual CSR activities is also easy to understand in terms of policies and efforts. However, the relationshipbetween the four material issues and the four CSR domains/seven CSR themes is opaque. Non-financial Highlights show the trends in themain data of environment, human resources/labor and corporate governance over the past three years, but their assessment and issues
are unknown.
In other words, it gives the impression that the information is somewhat disjointed. I therefore recommend that the CSR system be
redefined first, and then a summary table be prepared so that you can see the targets, achievements/assessment and issues on an itemby-item basis. In particular, reflecting the results of “CSR self-inspections” (referred to in the column on page 16) would be effective.
The original objective of a CSR report is to not only report on CSR activities, but also describe the plan-do-check-act (PDCA) cycle
aimed at improving such activities. Fulfilling this objective will make the report more scenario-oriented and easier to read.

CSR activities

Masahiko Kawamura

Message fromthe President

Mr. Kawamura has served as President and Chief ESG Analyst of
Alterna Research Institute, Alterna Co., Ltd. as well as the Headof its CSR Department Members’ Tutoring School since 2016. Healso serves as Visiting ESG Analyst of NLI Research Institute (former
Head of ESG Research Office) and Vice Chairman of Sustainable
Management Forum of Japan. After earning his master’s degree incivil engineering from Kyushu University Faculty of Engineering andjoining Mitsui Ocean Development & Engineering Co., Ltd. (MODEC)
in 1976, he joined NLI Research Institute in 1988. His areas ofexpertise are environmental management, CSR management,
integrated reporting, and climate change adaptation. His publishedworks include “Carbon Disclosure”, “New Trends in Integrated
Reporting”, “Perfect Guide to CSR Management (CSR Keiei
Paafekuto Gaido)”, and “Integrated Thinking and ESG Investment”.

34

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)

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