ESG Report

Corporate Governance
The Yokowo Group aims to achieve its management goals by ensuring management efficiency, transparency andcompliance through the continuous strengthening of its corporate governance, positioned as one of the Groupʼsimportant management challenges.

Initiatives to Improve Governance
Establishment of the Nomination andCompensation Advisory Committee

Board of Directors

Basic Principles Concerning Corporate
GovernanceTo speed up the decision-making process, the Board of Directors
consists of only a limited number of directors (3 internal and 2
outside directors). The Company has appointed two independent
outside directors (with a high level of independence) to further
strengthen the management supervisory function, and theseinclude a female outside director.

Recognizing that Yokowo exists today through the supportof its various stakeholders, the Group positions strengthening
corporate governance as one of its important management
challenges. As well as building smooth relations with its
stakeholders, the Group aims to maximize corporate value
through further enhancing its corporate governance.

Audit & Supervisory Board
In addition to one full-time internal Audit & Supervisory Board
Member with sufficient knowledge in finance and accounting,
the Company has appointed two highly independent outside
Audit & Supervisory Board Members to further strengthen the
management audit function.

Corporate Governance System

Executive Officers
By adopting the Executive Officer system, the strategic decisionmaking and operational supervisory functions are clearly separate
from the executive function, creating a system for prompt andappropriate execution of operations. In addition to three internal
directors, the Company has appointed 10 executive officers in
the positions of Chief Officer, General Manager, and General
Manager at Tomioka plant, etc.

Yokowo is a company with auditors and has a system ofcorporate governance consisting of: a Board of Directors
responsible for management strategy and supervisory functions,an Executive Officer system that fulfills business execution, andan Audit & Supervisory Board that performs management audit
functions.

In February 2021, the Nomination and Compensation Advisory
Committee was established as an advisory body for the Boardof Directors, with the aim of enhancing the transparency ofthe decision-making process for matters relating to corporate
governance, such as directorsʼ nomination and compensation.
The Committee is composed of the Companyʼs two independent
outside directors and its representative director, with Ms.
Kuniko Muramatsu, an independent outside director, serving aschairperson. The Committee receives requests for consultationfrom the Board of Directors, and deliberates and decides on
proposals and submits reports to the Board of Directors. The
rules governing the operation of the Board of Directors specify
that, in its decision-making, the Board must respect the content
of the reports received from the Committee to the utmost
possible extent.

Measures to Enhance the Auditing Function
As well as sharing information and exchanging ideas in advanceof the Board of Directorsʼ agenda, the Companyʼs outside
directors share, to a necessary extent, matters of deliberation
and reports from the Audit & Supervisory Board.
Full-time internal auditors ensure compliance andappropriateness by attending important monthly meetings toregularly monitor how business is conducted.

▼Corporate Governance System (As of October 1, 2021)

Business Risk Management Committee

General Meeting of Shareholders
Elect

Board of Directors outside
Consultation
Supervise

Elect

Audit

Elect

Cooperate

Audit & Supervisory Board

Independent Auditors

Management/Supervision

Reporting

Nomination andCompensation
Advisory
Committee

Cooperate

Audit

Audit

Business Execution

President and Executive Officer
Business Risk Management Committee
Internal Audit Dept.
CSR Promotion Dept.

Furthermore, the Company has established the Business Risk
Management Committee as an organization under the directcontrol of the President. Its aim is to strengthen the Companyʼscompetitiveness and ability to manage risk, such as by forming
alliances through joint ventures, mergers and acquisitions tofurther advance business, and by verifying the profitability oflarge-scale investments. In addition to regular reports to theBoard of Directors, the Committee conducts activities in close
cooperation with the outside directors.

Management Planning H.Q.
Administration Management H.Q.

Analysis and Evaluation of theEffectiveness of the Board of Directors

Sales H.Q.
Technical H.Q.

VCCS
Business Div.

CTC
Business Div.

FC
Business Div.

Core Technology Development H.Q.

MD
Business Div. Production Process Innovation H.Q.
Purchasing H.Q.
Quality Assurance H.Q.

Business Organization

27

Yokowo 2021 Integrated Report

Functional
Organization

Since 2016 Yokowo has been conducting self-evaluation
surveys and, when necessary, interviews with all its directors andauditors, collecting the results and analyzing them.
Based on the surveys and interviews conducted in June

2021, the effectiveness of the Companyʼs Board of Directors wasdeemed to be, on the whole, sufficient. Nonetheless, Yokowo
will systematically work on improvements and measures on all
issues and demands to further improve the effectiveness of theBoard of Directors.

Director and Executive Officer
Compensation
Policy on Determining Director and Executive
Officer Compensation
With regards to compensation for the directors of the Company,
an upper limit for the total compensation in each fiscal year
is set by resolution at the General Meeting of Shareholders.
Compensation for individual directors is then determined by aprocess whereby the Nomination and Compensation Advisory
Committee receives a request for consultation from the Boardof Directors, and then deliberates and decides on proposals
regarding the amount to be paid to individual directors before
reporting to the Board of Directors, which then makes the
final decision, while respecting the reports received from theCommittee to the utmost possible extent.
In the same way, with regards to compensation for theauditors, an upper limit for the total compensation in each fiscal
year is set by resolution at the General Meeting of Shareholders.
Individual compensation is then determined within the boundsof the upper limit through consultation with auditors.

Compensation for Directors
Compensation for the Companyʼs directors consists of fixedmonthly compensation, a monetary executive bonus, and a sharebonus in the form of stock options, etc.
Based on guidelines that take into account individualsʼ roles
and responsibilities, the Representative Director, President andExecutive Officer draws up a proposal regarding the amount of
fixed compensation after taking into consideration the businessresults of the previous fiscal year, the management plan of thecurrent fiscal year, and the roles of each director, etc., submits arequest for consultation to the Nomination and Compensation
Advisory Committee, and then reports to the Board of Directors,
which deliberates on the matter and makes the final decision.
Executive bonuses are paid to internal directors who are
executive directors, to enhance their motivation for improving
the Companyʼs performance in each (consolidated) fiscal year,
and are based on the extent to which performance targets havebeen met. Consolidated operating profit, which best represents
the Yokowo Groupʼs earning ability, is used as the performancetarget.
Regarding the question of whether executive bonuses arepaid, and the total amount paid, the Representative Director,

Yokowo 2021 Integrated Report28

ESG Report

Directors, Auditors and Executive Officers(As of June 25, 2021)
President and Executive Officer draws up a proposal based on theextent to which consolidated operating profit targets have been
met in each (consolidated) fiscal year. If it is determined that
executive bonuses will be paid that year, then the Representative
Director, President and Executive Officer draws up a proposal
regarding the amount to be paid to each individual based on theroles and results of each individual executive director, submits arequest for consultation to the Nomination and Compensation
Advisory Committee, and then reports to the Board of Directors,
which deliberates on the matter and makes the final decision.
With the aim of sharing value with shareholders whileproviding increased incentive to build corporate value overthe medium to long term and enhance shareholder value,stock options are granted to executive directors. However, thedecision as to whether to grant stock options, and the period,is determined after comparing the impact of the necessary
expenses on performance with the anticipated incentive effect.
With regard to the amount of stock options granted to eachindividual executive director, the Representative Director,
President and Executive Officer draws up a proposal regarding
the amount of stock options to be granted to each individual
executive director based on the roles and results of eachindividual executive director, within the upper limit (in terms ofthe value of shares or number of shares) set by the Shareholders
Meeting, submits a request for consultation to the Nomination
and Compensation Advisory Committee, and then reports to theBoard of Directors, which deliberates on the matter and makes
the final decision.
As a general rule, internal directors are obliged to contributea certain amount or more of their basic compensation to the
Executive Shareholdersʼ Association every month as stipulated

each executive director and on trends in compensation at othercompanies with a similar scale of operation to Yokowo. In thecase where stock options are granted up to the specified upper
limit, the target ratios for each category of compensation are:basic compensation: 60%; performance-linked compensation:
20%; compensation in the form of shares: 20%.

by internal rules. Yokowo shares accumulated by the Executive
Shareholdersʼ Association shall be transferred under the nameof the individual executive directors every six months (in late
September and late March). Directors shall, in principle, while intheir position of director, hold their shares and not sell them.
Regarding the ratio of executive directorsʼ overall
compensation to be held by each category of compensation, thisshall be determined based on the roles and responsibilities ofOf the various areas of specialist experience and areas ofexperience possessed by each current Director and Memberof the Audit & Supervisory Board, up to three items are listed
for which there are particularly strong expectations regardingthat individualʼs ability to utilize these items effectively in theperformance of their duties. The table below thus does not show
the entirety of the specialist experience and experience of eachindividual.

Compensation for Auditors
Compensation for auditors is limited to basic compensation,
which comprises monthly compensation in monetary terms.
The amount of basic compensation is determined bydiscussion among the auditors at the Audit & Supervisory
Board meeting held immediately after the General Meetingof Shareholders, taking into consideration the roles andresponsibilities of each auditor and based on guidelines
stipulated in advance.
In the event of bonuses to auditors, these are paid after
approval at the General Meeting of Shareholders.
▼Compensation Figures

280
(20)
40
320

Directors(outside)
Auditors
Total

Basic
compensation

Executive
bonus

Compensationin the form ofsharesPositionHajimeShioiri

Representative Director,
President and Executive
Officer

Director,
Senior Managing Executive
Officer

Director,
Managing Executive
Officer

Outside Director

Outside Director

Attendance rate at Boardof Directors Meetings:
18/18 times (100％)
Number of Company
shares held:
286,942 shares

Attendance rate at Boardof Directors Meetings:
18/18 times (100%)
Number of Company
shares held:
50,828 shares

Attendance rate at Boardof Directors Meetings:
18/18 times (100%)
Number of Company
shares held:
89,005 shares

Attendance rate at Boardof Directors Meetings:
18/18 times (100%)
Number of Company
shares held:
0 shareAttendance rate at Boardof Directors Meetings:
18/18 times (100%)
Number of Company
shares held:
0 share

132
(12)
30
162

41
(―)
―
41

―
(―)
―
―

173
(12)
30
203

Company Officers Skill Matrix

Corporate
management

ESG andsustainability〇

Representative Director, President andExecutive Officer〇

Kouichi Fukagawa

Director, Senior Managing Executive Officer〇

Yasushi
MashimoTooru
FurutaToshiakiTochigi

Audit & Supervisory Board
MemberOutside Audit &Supervisory Board Member

Outside Audit &Supervisory Board Member

Attendance rate at Boardof Directors Meetings:
18/18 times (100%)
Attendance rate of the
Audit & Supervisory Board
Meetings:
17/17 times (100%)
Number of Company
shares held:
31,603 shares

Attendance rate at Boardof Directors Meetings:
17/18 times (94%)
Attendance rate at Audit& Supervisory Board
Meetings:
16/17 times (94%)
Number of Company
shares held:
0 shareAttendance rate at Boardof Directors Meetings:
18/18 times (100%)
Attendance rate at Audit& Supervisory Board
Meetings:
17/17 times (100%)
Number of Company
shares held:
0 sharePresident and Executive Officer

Kenji Yokoo

Director, Managing Executive Officer〇〇

Outside Director〇〇

Hajime Shioiri

Outside Director〇

Yasushi Mashimo

Audit & Supervisory Board Member

Tooru Furuta

Outside Audit & Supervisory Board
MemberOutside Audit & Supervisory Board
MemberFinance and M&A

Human resources
and labor affairs

〇
〇
〇
〇

〇

〇

〇
〇

Executive Officer cum Chief Officer,
Production Process Innovation H.Q.

Executive Officer cum Chief Officer,
Technical H.Q.

Shinji Kusano

Naohito Odani

Kouichi Fukagawa

Executive Officer cum Deputy Chief Officer,
Technical H.Q. cum General Manager,
VCCS Engineering Management Division

Executive Officer cum Chief Officer,
Purchasing H.Q. cum General Manager,
VCCS Manufacturing Department

Managing Executive Officer cum General Manager,
VCCS Business Division

Tsuyoshi Sakata

Yoshiro Furumi

Executive Officer cum General Manager,
MD Business Division

Executive Officer cum General Manager,
FC Business Division

Hiroshi Igahara

Motoaki Matsuura

Executive Officer cum Chief Officer,
Quality Assurance H.Q.

Executive Officer cum General Manager,
CTC Business Division

Masaki Shimizu

Naoki Kawata

Takayuki Tokuma
Senior Managing Executive Officer

Kenji Yokoo

〇
〇

〇
〇

Legal affairs andrisk management〇

Kuniko Muramatsu

Yokowo 2021 Integrated Report

KunikoMuramatsu

Executive Officers

Takayuki Tokuma

29

Kenji
Yokoo

Total

Specialist Expertise and Experience

Toshiaki Tochigi

Kouichi
Fukagawa

Audit & Supervisory Board Members

Fiscal 2020
Upper Limit(annual)Takayuki
Tokuma(million yen)▼Company Officers Skill Matrix

Name

Board of Directors〇〇〇

Managing Executive Officer cum General Manager,
VCCS Overseas Plant

Katsuhei Yanagisawa
Managing Executive Officer cum General Manager,
Tomioka Plant

Mitsuaki Okazaki* For details regarding the reasons for appointment of individual Directors andAudit & Supervisory Board Members, please visit our official corporate website.
https://www.yokowo.co.jp/english/company/csr/governance.html

Yokowo 2021 Integrated Report30

ESG ReportCompliance and Risk Management
In accordance with the CSR Code of Conduct, the Yokowo Group will comply with laws and regulations in good faithand engage in fair corporate activities on a daily basis, and will also fulfill the social responsibilities of a corporation
by responding appropriately to risks through our Risk Management System and efforts to continuously improve ourrisk management performance.

Approaches to Compliance
The Yokowo Group will contribute to the development of asustainable society by engaging in activities that impact on theeconomy, the environment, and society in a transparent andhighly ethical manner in order to earn the trust of stakeholders
with the constant aim of enhancing corporate value.

Initiatives to Improve ComplianceTo ensure compliance, the Yokowo Group works to firmly
establish the CSR Code of Conduct, which sets out the actions to
be taken by the Groupʼs officers and employees, and distributes
it as a leaflet in Japanese, English, or Chinese that can be carriedaround easily, to make all officers and employees familiar with its
content. We also endeavor to detect and correct any violationsof laws and regulations, the Articles of Incorporation, or related
rules through the establishment of a whistleblowing system
under the Compliance Rules and the use of an external hotline.
Furthermore, the Internal Audit Department audits businessprocesses in each department at Yokowo and at subsidiaries
in Japan and overseas, providing guidance on detecting andpreventing misconduct and improving processes.
In FY2021, there are no compliance violations.

The Yokowo Group has established and maintains the Risk
Management System (RMS), which conducts identification,
analysis, planning, implementation, evaluation, improvement,
and review for diversifying loss risks in order to ensure morestable and smoother business activities. Under the Risk
Management Rules, we have established risk management
policies and risk management guidelines, and we are striving tocontinually enhance the RMS.
We are also working to identify risks at an early stage,
share and analyze them and to formulate and implement
countermeasures, with the establishment of the Business Risk
Management Committee (see the Corporate Governance pageon p. 28).
▼Schematic diagram showing the internal whistleblowing
systemContact points for reports andrequests for consultation

External consultation window

Responsible department within
the Company

Demonstrating concern for
the feelings of the reporting party

Clarifying the reporting
party’s intent

Collating the issues
Support for exploring solutions

Investigations and interviews

Consultation
with external
experts

Clarifying the reporting
party’s intent(1) Handling the matter outside the Company(2) Submitting a non-anonymous report to
the Company(3) Submitting an anonymous report to theCompany
Where the reporting
party does not wish
to have the matterhandled by theCompany

Selection of a strategy for resolving
the issue based on the reporting
party’s own insights

Where thereportingparty wishes
to have thematterhandled by theCompany

Examination to resolve the issue
and/or decision on disposition by
the Rewards and Penalties Committee

Resolving the issue

Aware of the potential impact of risk on our business activities,
besides complying with relevant laws and regulations, theYokowo Group also strives to fulfill our social responsibility andput organizational operation on a stable footing by responding
appropriately to risk, through measures to continually
improve our risk management systems and risk management
performance.

Giving first priority to employeesʼ
health and the safety of local
communities

Initiatives to Improve Risk
Management

Approaches to Risk Management

The Yokowo Groupʼs measures in response to
the COVID-19 pandemic

Reoccurrence prevention
and follow-up

In responding to the COVID-19 pandemic, the Yokowo
Group has followed the instructions given by theJapanese government, and has implemented infection
prevention measures that prioritize the health andsafety of Group employees and their family members,customers, suppliers, local residents, and others.
Since as early as late March 2020, Yokowo has
been implementing teleworking at its two facilities(Tokyo head office, and Utsunomiya branch) in theTokyo metropolitan region, where the infection was
spreading rapidly. Currently, around 80% of employees
at the Tokyo head office are working from home,which exceeds the 70% target set by the Japanese
government.
Aware of our responsibility to deliver products tocustomers, we ensure that our employees engaged
in product manufacturing at our Tomioka plant takethorough infection prevention measures that do
not disrupt production, so that we can continue tosupply both products and services. At the plantʼsdevelopment, design, procurement, quality assurance
and management departments, a shift system has
been adopted whereby employees are divided into twogroups, spending alternate weeks working at home andcoming in to the plant to work. In this way, even if an
employee gets infected with COVID-19, the plant cancontinue its operation.
Yokowo has arranged the working environment
for teleworking by investing in IT equipment to ensure
security and a seamless network environment for
telecommuting equivalent to that in the office. We
have also built a permanent teleworking system, forexample by providing lump-sum payments to help
employees prepare for working from home, along withteleworking allowances, and by signing contracts forshared office operation.
Additionally, in FY2020, we donated 10 million yen
each to the local government authorities in Kita-ku,
Tokyo, where Yokowoʼs head office is located, and in
Tomioka City, Gunma Prefecture, where the Companyʼsmain manufacturing facility is located.

Internal measures in response to
the COVID-19 pandemic■ In July 2021, workplace vaccination was conducted
for Yokowo Group employees working at the
Tomioka plant, and their family members■ From 2021 onwards, workplace vaccination has been
conducted at the China plants, the Malaysia plant,
and the Vietnam plant■ Teleworking has been implemented at overseas sales
locations, including those in Taiwan and the U.S.A.
■ Health management has been performed using daily
temperature checks, and monitoring employeesʼ
movements■ Automated temperature checking stations have been
installed, along with the provision of alcohol-based
sanitizer■ Entry to production facilities by personnel from otherdepartments has been restricted■ Yokowo has ensured thorough implementation of
the policy of avoiding the Three Cʼs (closed spaces,
crowded places, and close-contact settings) in the
Tomioka plantʼs cafeteria, with measures that include
a four-shift system for meals, eating in silence, andsanitization after eating.
■ Overseas business travel has been prohibited (except
where absolutely necessary), and the use of public
transport for domestic business travel has also beenprohibited■ PCR tests have been implemented in the workplace,in collaboration with GME, a company based in
Takasaki City, Gunma Prefecture■ New IT infrastructure has been adopted to ensuresmooth implementation of teleworking■ The teleworking system has been put in a permanentfooting■ Shared offices have been used

An automated temperature checking
station located at the entrance to the
Tomioka plant

31

Yokowo 2021 Integrated Report

Yokowo 2021 Integrated Report32

ESG Report

Employees
The Yokowo Group aims to promote and advance diversity and inclusion among our employees and strives to create arewarding and attractive workplace environment with the aim to “Be a company where employees feel comfortablebeing employed, and which ensures that employeesʼ families are happy for them to work there.”

Holding Roundtable Meetings toFurther Improve the Workplace
Environment

Basic Data on Employees▼Number of Employees
Yokowo total

Asia

8,428

1,209

81

7,138

6,373

246

55

6,072

Circuit Testing Connectors

835

265

15

555

Wireless Communication Equipment—Fine Connectors

503

71

9

423

Wireless Communication Equipment—Medical Devices

248

247

1

0

Other employees

469

380

1

88

Total employees (persons)
Vehicle Communication Equipment
Breakdownbybusiness segment

Europe andthe U.S.

Japan

Composition of Employees
The main production bases in each segment are China andVietnam for the Vehicle Communication Equipment segment,
Malaysia and Japan for the Circuit Testing Connectors segment,
Malaysia and China for the Fine Connector business in the
Personal Communication Equipment segment, and Japan for
the Medical Device business in the Personal Communication
Equipment segment. Our production bases are concentrated
in Asia. In particular, there are a large number of employees in
China and Vietnam, which are production bases for the Vehicle
Communication Equipment segment.

▼Recruitment and Turnover
YOKOWO CO., LTD.

82

New recruitment
Male

Total

53

FemaleTotal

29

Number of job leavers

Yokowo is holding roundtable meetings to clarify issues in ourorganizational culture and systems, to build and strengthen
specific improvement measures and systems, and to share themamong employees in order to realize a rewarding and attractive
workplace environment.
The roundtable meetings are held with employees divided
according to eight attributes to stimulate discussion within each
attribute and ensure the identification of areas for improvementin the current situation at Yokowo. We intend to use theidentified areas when we revise the personnel system and othersystems in the future.
▼Roundtable Meeting Attributes
1

Female6Specialists (employees withspecific qualifications)34

2

Non-Japanese

7

Production line employees andsupervisors

3

Young employees in their first
three years at the Company

8

Veteran employees aged 55
and older4Mid-career employees intheir 30s

9Roundtable suggestion box*

5

Employees raising children

Male

Total

24

FemaleTotal

10

Performance Evaluation
At the beginning of each fiscal year, every employee preparesa job description in consultation with their superiors which
includes their duties and goals, and carries out their duties.
Superiors evaluate employee performance every six months andhold interviews to provide feedback on the results to employees.

Development of Human Resources
We have established an “integrated human resource
development system starting with new employees” in order tocultivate “globally-minded human resources” who will support
the full-scale globalization of our business and to actively
promote the strengthening of management at all levels. In
addition to training that is common to all employees, we provide
diverse position-specific and specialty training to encourage
employee growth.

* We have established the “Roundtable suggestion box” on the Company
intranet as an opportunity to enable employees with opinions to speakout freely. The opinions we collect will be used to initiate new roundtable
meetings depending on the content.

Work-Life Balance▼Conceptual Diagram of Training System

Other work-life balance measures

Use of childcare leave
Yokowo has established a childcare leave system to support
employees in balancing work with childcare. In FY2020, one
female employee took childcare leave.

■ Hourly paid leave■ Special COVID-19 vaccination leave

General manager

New general manager training

Deputy General
Manager

New deputy general manager training

Manager

New manager training

Assistant Manager

Mid-career employee (leader) training

MemberYoung employee training

Induction

Self-education

33

Yokowo 2021 Integrated Report

Specialty training

Common training

Next-generation leader
selective training

Sales
department
training

Technology
department
training

Production
department
training

Administration
department
training

Tentative assignment/basic training

Self-education
Online education (position-specific) andlanguage training* Number of annual paid leave days taken ÷ number of annual paid leavedays newly granted each fiscal year

Position-specific training

Training on current affairs

Yokowo has established a nursing care leave system to support
employees in balancing work with nursing care. In FY2020, no
employees took nursing care leave.

Global adaptation training(cross-cultural adaptation, etc.)

We promote the use of annual paid leave aiming for an annual
paid leave utilization rate* of 70%, which is the target for
FY2020. In FY2020, the annual paid leave utilization rate was
63.6%.

Non-management
position

Use of nursing care leave
Management
position

Percentage of annual paid leave taken

Online education (support for occupational training and acquisition of qualifications)

Yokowo 2021 Integrated Report34

ESG Report

Diversity
Through the promotion of diversity and inclusion, the Yokowo Group is promoting the recruitment and developmentof human resources without regard to nationality, gender, or age, with the aim of becoming Team Yokowo, a“sustainably evolving company.”

Approaches to Diversity
The Yokowo Group hires and trains diverse human resources,
irrespective of nationality, gender, or age, and strives to create
an employee-friendly workplace where there is respect forindividuality and fair and equitable treatment to enable each andevery employee to achieve their full potential.

female employee) to discuss what aspects of our organizational
culture are hindering active participation by women and how to
improve the culture as well as formulating an improvement plan.
▼Percentage of female employees★
(persons)

800
600

Concrete Measures Relating toDiversity
The Yokowo Group treats “diversity and inclusion” as one of ourmanagement strategies. We are striving to become a company
where employees with the diverse values of global Yokowo areable to come together and work together on a global basis toachieve their full potential. In terms of diversity, we are steadily
promoting measures based on the TISP Project to expand thefield of activities of non-Japanese employees. However, there arestill many issues to be addressed in increasing the ratio of female
leaders and the ratio of employees with disabilities.
In 2021, the revised Child Care and Family Care Leave Act
was enacted, requiring companies to encourage male employees
to take childcare leave. However, it is necessary clarify the issues
involved for this measure to become established at Yokowo.
In order to clarify these issues in our organizational culture
and systems, and to share the direction for improvement
and reform, one of our concrete measures is the “roundtable
meetings” (see the Employees page on p. 34), where theemployees concerned can frankly exchange opinions andreflect them in changes to the human resources system and inmanagement.

Promoting Active Participation by Women
Due to the fact that Yokowo is a manufacturing company, thenumber of permanent female employees hired is small, andthe ratio of female leaders is currently lower than that of male
employees due to the small pool of female employees. However,our goal is to increase the ratio of female leaders to at least thesame as that of male leaders. To achieve this goals, we havestarted to appoint women as outside directors and promoting
them to management positions. At the same time, we have helda roundtable meeting on womenʼs active participation (led by a

35

Yokowo 2021 Integrated Report

（％）

906

1,000

817

769

659
11.4

839

16
15.1
12

11.3

11.1

10.7

8

400
200
0

0.9
2016

2017

3.1

2.6

1.3
2018

Number of YOKOWO CO., LTD. employees

2019

3.1

2020

4
0

(FY)
Percentage of female managers*1

Percentage of permanent female employees*2*1 Female managers at end of fiscal year ÷ executive and management positions
at end of fiscal year (includes assistant managers, excludes specialists)

Promoting Active Participation by Senior Human
Resources▼Changes in new graduate hires and mid-career hires★

In addition to the existing system of re-employment (reemployment after transfer to an affiliated company), we
established a new system to extend employment after retirement
at the age of 60 as permanent employees at our Head Officein 2020 in order to promote the active participation by seniorhuman resources. This is subject to approval by the Personnel
Committee if the Company deems it necessary and the employee
agrees to do so for the purpose of transferring technology toyounger employees or utilizing proprietary technology andknow-how.
This system also allows those who are 65 years old or older tocontinue to playing an active role under an outsourcing contract
or consultant contract if the Company deems it necessary andagrees with the individual.
Furthermore, we hold roundtable meetings for senior humanresources to further improve the system while incorporating theopinions of the people concerned.

(Person)▼Number of older employees re-employed★
(persons)

30

30
25

*2 Number of female employees at end of fiscal year ÷ number of full-timepermanent employees at end of fiscal year20★: YOKOWO CO., LTD.

15
10Employment of People with Disabilities

5

Yokowo is a manufacturing company focusing on microprecision processing. As such, we have not made progresson hiring people with disabilities, and we have not met thelegally mandated employment rate. Nevertheless, from theperspective of the SDGs, we have set a goal to at least double
the employment rate of people with disabilities compared to
the legally mandated rate. In order to achieve this goal, we
determined the need to develop both tangible and intangible
company-wide infrastructure and development of jobs thatwould enable people with disabilities to play active roles, andset up the “Project Team for Establishing a Special Subsidiary.”
The immediate goal is to establish a special subsidiary in FY2022
and build a system that will stably meet the legally mandated
employment rate for people with disabilities.

0

22
19
11
8

2016

2017

2018

2019

2020

（FY）

★: YOKOWO CO., LTD.

Strengthened Mid-career Hiring
The Yokowo Group corporate vision incorporates the message
that “as Team Yokowo, by creating new products thatincorporate cutting-edge advancements based upon the Groupʼs
proprietary technology, we want to be a company that while
evolving, achieves persistent growth.”
The Yokowo Group in principle enhances our workforce
by hiring new graduates, however recent years have seen an
increase in the ratio of mid-career hires supported by strong
business performance. We are bringing together all employees
who sympathize with this message, regardless of new graduate
or mid-career hires, irrespective of gender, age, or nationality.

50

49

45

40
30
20

18

16

30

29

25

20

18

22

10
0

2016

2017

New graduate hires

2018

2019

Mid-career hires

2020

（FY）

★: YOKOWO CO., LTD.

TISP ProjectAt the Yokowo Group, we are promoting the “TISP (Tomioka
International Specialist Park) Project” as a central part of ourdiversity and inclusion initiatives.
This project brings together specialists from around theworld (in product design, production engineering, elemental
technologies, quality assurance, production control, etc.)
to our main plant—the Tomioka plant (Gunma Prefecture).
Hiring criteria place no particular requirements as regards
Japanese conversational ability, and have a focus on expertisefor midcareer hires, and potential for new graduates. Looking
forward, we aim to bring together 120 foreign specialists
centered around the Tomioka plant.
With this project, we are actively recruiting foreign employees
living in Japan, and those living overseas. In particular at our
main manufacturing bases in China, Vietnam, and Malaysia, wehave in place a multi-year training program in Japan for new
graduate hires who have graduated from local universities inthose countries. For these trainees, we create an individualized
CDP (Career Development Plan) with which we provide
systematic human resource training, and many of the trainees
who have completed their training in Japan return to work intheir own countries.
▼Changes in TISP human resources★
(Person)

66

70
60

61

54

50
40
30

31
23

20
10
0

2016

2017

2018

2019

2020

（FY）

★: YOKOWO CO., LTD.

Yokowo 2021 Integrated Report36

ESG Report

Information Security

Procurement

In our current networked era, we are seeing increasing worldwide demand for strengthened information security.
The Yokowo Group constantly recognizes the importance of all the information assets and we promote information
security activities globally to meet these requirements.

The Yokowo Group strives to engage in fair and equitable transactions with suppliers, and we are focused onbuilding equal partner relationships. We are working to transform our system away from a passive procurement
function towards more dynamic procurement.

Approaches to Information Security
The Yokowo Group aims to ensure that it always recognizes
the importance of all information assets handled thereby,
including information provided by its customers and business
partners, in order that the Group may continue to be a trusted
member of society. To this end, the Group has stipulated andimplemented its Information Security Policy in order to prevent
all improper disclosure, divulgence, and unauthorized use ofsuch information assets.

constructed an information security management system (ISMS),
and is working together with the entire Group to advance its
information security activities.
In December 2014, Yokowo head office and its threedomestic group companies acquired ISO 27001, the International
Organization for Standardization (ISO)ʼs information security
management system standard. Yokowo is also promoting theacquisition of this standard at its major sites.

Information Security Education
Information Security Policy (Overview)
1. Compliance
2. Framework
3. Management of Information Assets
4. Training
5. Preventing and Responding to Incidents
Enacted: April 1, 2013

* The full text of the Information Security Policy can be viewed on the
Yokowo website.
https://www.yokowo.co.jp/english/company/csr/security.html▼Information Security Management Framework
Chief Information Management Officer
President & Executive Officer

The Group considers the basis for information security to be foreach employee to have a high level of awareness with regard
to information management, and works to keep all officers andemployees (including temporary staff) well informed regarding
laws and regulations as well as corporate policy and rules, etc.
governing information security.
Furthermore, Yokowo implements various activities in order
to increase awareness of information management, such as
carrying out yearly e-learning sessions on information security,and issuing all employees with an Information Security Handbookthat details practices which should be followed during the courseof everyday duties.
▼ISO 27001 Certification Status
2014

YOKOWO CO., LTD., 3 Japanese subsidiaries

2016

Chinese subsidiaries (3 locations)

2017

Malaysia subsidiary

Information Security Committee
Committee Chairman:
Senior Information Management Officer

Committee Members:
General Managers,
Information Management

Committee Members:
General Manager,
Information Systems Dept.

Enhancement of Information Security
Under the Groupʼs Information Security Policy, Yokowo
recognizes the management of information security as oneof the most important issues in business management. In
order to manage the information assets appropriately, it has

37

Yokowo 2021 Integrated Report

Approach to Procurement

Measures Relating to Procurement

Besides striving to ensure fair and equitable transactions
with our suppliers, the Yokowo Group also aims to realize a
procurement function to purchase high-quality, reasonablypriced items from all over the world at the right time and in
the right quantities, while promoting proactive procurement
activities that contribute towards the Companyʼs profitability.
We not only comply with all relevant laws and regulations, suchas the Act against Delay in Payment of Subcontract Proceeds,
Etc. to Subcontractors, but also strive to fulfill our social
responsibility within the supply chain in order to build multilayered production bases and a reliable supply network when
undertaking day-to-day purchasing activities.

Compliance with the Act against Delay inPayment of Subcontract Proceeds, Etc. to
Subcontractors (Subcontract Act)

Policies
Yokowoʼs Purchasing H.Q. conducts its operationsin accordance with the following basic policies:
Cost Reduction, BCP Strategies, and Strengthening
Procurement Capability.
Date of formulation: April 1, 2020

Details of the basic policies

Cost Reduction

Protection of Confidential Information
Under its Information Security Policy, the Group has establishedconfidentiality rules for the protection of confidential
information, and disseminated these to the Group and all
suppliers, etc. engaged in Yokowoʼs business. Throughcompliance with these rules, Yokowo handles and protects, bothstrictly and appropriately, all information assets possessed by
Yokowo, and information disclosed to it by its customers.

■ Striving to reduce costs■ Ensuring that costs are set early■ Thorough implementation of theprinciple of Sangenshugi̶theThree Actuals (the actual place,the actual part, and the actual
situation)

BCP Strategies■ Stable procurement■ Supplier quality enhancement■ Fair and equitable selection of
suppliers

Strengthening
Procurement
Capability■ Training and developing humanresources■ Compliance with relevant laws,
ordinances, and specifications■ Consideration for the environment
and for society■ Having employees attend external seminars■ Implementation of internal education■ Responding to Japan Fair Trade Commission (JFTC)
questionnaire surveys■ Checks performed in day-to-day operations (with rigorous
verification of negotiations, unit price setting, acceptanceinspection, and payment)

Elimination of child labor, use of prohibitedchemical substances, and use of conflict minerals■ The requirement to eliminate child labor, use of prohibitedchemical substances, and use of conflict minerals is clearlystipulated in the Code of Conduct for Business Transactions(and Agreement), which was compiled as an annex when
Yokowo revised its master agreements pursuant to therevision of Japanʼs Civil Code.
■ Surveys of the substances contained in mass-produced
products are being implemented at all Yokowo Group plants■ When launching production of a new model, suppliers are
required to provide data on the substances contained at thetime of the first sample inspection■ The prohibition on conflict minerals applies to materials thathave cobalt, cassiterite, tungsten or gold as a raw material

Implementing Green Procurement
The Yokowo Group holds presentations for our suppliers on
chemical substances contained in products, and we implement
environmental assessment that includes constituent analysisof the items that suppliers deliver. In addition, the masteragreement that we sign with suppliers includes provisions
relating to not using harmful chemical substances, ourprocurement activities prioritize purchasing items that havea smaller environmental footprint, and product verification is
performed in collaboration with our Quality Assurance H.Q.

Yokowo 2021 Integrated Report38

ESG Report

Occupational Health & Safety: OH & S

Local Communities

The Yokowo Group positions the management of health and safety of its employees as well as stakeholders in theGroupʼs activities as the top priority issue for its management, and will pursue a workplace where they are able to workwithout undue concern by always securing their safety, and that will strive to promote their mental and physical health.

Operating in a range of locales both within Japan and overseas, the Yokowo Group values our relationships withlocal communities, and is promoting multifaceted social action programs. As a company rooted in local communities,
we will contribute to their development, and towards achieving a sustainable society.

Approaches to Occupational Healthand Safety
The Yokowo Group positions proper management of the safety,
peace of mind, and health of employees and other stakeholders
as a number one priority. In order to safeguard every individual
employee—each of whom is vital to the Groupʼs business
continuity and growth—we have formulated the Occupational
Health and Safety Policy, and we promote occupational healthand safety activities on the basis of this policy.
* Please see our website for more details on the Occupational Health and
Safety Policy of the Yokowo Group.
https://www.yokowo.co.jp/english/company/csr/safety.html

Occupational Health and Safety Framework
Yokowoʼs Health and Safety Promotion Committee meets on amonthly basis. The Committee is headed by senior management
and consisting of the OH&S managers and promoters of eachdepartment, who play a central role in practical health and safety
activities. The Committee strives to realize continued improvementof OH&S activities by sharing the progress made in individual
departmentsʼ OH&S action plans, the results of monthly OH&S
inspections, and details of occupational accidents and the remedial
measures taken. In addition, the Committee holds monthly
meetings to provide a venue for talks between its members, bothfrom labor and management, with the participation of occupational
physicians, etc., as required by law. The Risk Assessment
Committee evaluates remedial measures when responding to
unexpected occupational accidents. It discusses and confirms
whether the measures proposed by the department where theaccident occurred are effective from an objective viewpoint, andwhether there are any oversights in preventing reoccurrence.
In April 2021, the Occupational Health & Safety Section wasestablished within the General Affairs Department. This new
department aims to further expand measures that contributetowards OH&S, with a particular focus on promoting theactivities of the various committees.
▼Occupational Health and Safety Management Framework

General Managers, Health and Safety Management /Senior Health and Safety Management Officer
Health and Safety Committee

Health and Safety
Promotion Committee

FY2018FY2019On Contributing to Local Communities

FY2020

Accidents withlost work days

1

0

2

Accidents without
lost work days

4

1

4

Total accidents

5

1

6

To Realize a Continued Improvementof Occupational Health and Safety
Yokowo has constructed an occupational health and safety
management system (OHSMS), and is working to advanceits OH&S efforts as the entire Group under the OH&S Policy.
YOKOWO CO., LTD., including the following subsidiaries, has
acquired “ISO 45001” certification, the international standard
for occupational health and safety management systems.
▼ISO 45001 Certification Status

2020

As a member of local communities, the Yokowo Group is
promoting a range of social action programs. Our aim is todevelop alongside local communities, through activities that
support their development, and initiatives that contribute tosolving societal issues.
▼Three Areas of Activities
Activities groundedin the community

Activities towards
achievinga sustainable society

Support for an Orphanage(YOKOWO VIETNAM CO., LTD.)In April 2021, in collaboration with other like-minded Japanesecompanies located in
the same industrial park,
YOKOWO VIETNAM provided
a local orphanage withmaterial support such as foodand beverage items, including
milk, and clothing.

Activities towards Achieving a
Sustainable Society

Activities that
contribute tocommunity development

YOKOWO CO., LTD., domestic subsidiaries(3 companies)

Donations of Masks and Sanitizer(YOKOWO ELECTRONICS (MALAYSIA) Sdn Bhd)
In 2020, YOKOWO ELECTRONICS (MALAYSIA) donated
COVID-19 infection control supplies such as masks and sanitizer
to the local police.

Chinese subsidiaries (2 locations)* OHSAS 18001 certification was obtained in 2016 in Japan and in 2017 in
China, however this was transferred to ISO 45001 certification in August
2020.

The Key Pillars of the Promotion of
Occupational Health and Safety Activities
The Yokowo Group has designated safety, health and workstyle as the three key pillars of the annual plan for promotionof occupational health and safety. Based on these three key
pillars, each department carries out occupational health andsafety activities systematically after setting its own targets andperforming risk assessment.

Community-based Activities
YUKA Volunteer Team(DONGGUAN YOKOWO CAR COMPONENTS CO.,LTD. [China])
In 2016, DONGGUAN YOKOWO CAR COMPONENTS CO., LTD.
formed the YUKA Volunteer Team, which promotes activities tosupport the elderly and people with disabilities in the community.
These activities include holding volunteer events as wellas environmental conservation activities, and these see many
employees volunteering to participate.

Ideal Form

An energetic
workplace
Work
style

Chief Occupational Health and Safety
Management Officer
President & Executive Officer

Occupational Health & Safety Section▼Occurrence of Occupational Accidents Over the Past Three Years

Healthy mind
and body
A healthy
Health workplace

Employees who have participated involunteer activities (2016 to present)

155

Activities that Contribute toCommunity Development
Naming Rights Partnership Activities(Tomioka Plant)
Wishing to contribute to the development of Tomioka City,
where it is located, the Tomioka Plant participated in the open
bidding for the naming rights for three local sports facilities andwas chosen as a partner enterprise by Tomioka City. Tomioka
Plant will encourage its employees and their family members to
use these facilities, which will improve their health and foster thebuilding of closer connections through sports, while at the sametime this will also support the joint development of both thelocal community and Yokowo.

4.5

The naming rights agreement covers the three-year
period between February 2021 and March 2024.
Total cost of naming rights:
million yen

SafetyA safe and secure workplace
Eliminate unsafe conditions
Eliminate unsafe behaviors

Risk Assessment
Committee

Follow rules / Self-management / Compliance
Head Office, Tomioka Plant,
Domestic Offices

39

Domestic Subsidiaries

Yokowo 2021 Integrated Report

Cooperative Company
in Tomioka Plant

Yokowo 2021 Integrated Report40

ESG Report

Environment
The Yokowo Group recognizes that conducting business activities in harmony with the global environment isan essential responsibility for a corporation. The Yokowo Group continues to implement a range of Group-wide
environmental preservation activities and address climate change based upon defined environmental policies in orderthat we can pass on our irreplaceable global environment to future generations.

Approaches to the Environment

Environmental Policy
Today, when Japan and the rest of the world
are starting to make a serious effort torealize carbon neutrality by 2050, Yokowo
is also responding to the demands of our
stakeholders and society by formulating
more concrete measures to address climatechange, and working actively to implement
them. Reflecting this stance, we support therecommendations of the FSB Task Force on
Climate-related Financial Disclosures (TCFD),
and we are implementing specific initiatives
to achieve the target of reducing greenhousegas emissions from our plants (Scope 1 and 2)
by 35% by FY2030, compared to FY2014, andpromote specific climate-related information
disclosure.
Yokowo is also committed to helping
to create a rich natural environment. We
seek to do this through our environmental
management system and through activities
designed to achieve continuous improvements
in environmental performance. As part of ourcommitment, we take into consideration theenvironmental impact of our business activities
and comply with all relevant environmental
laws, regulations, and guidelines, as well aswith each customerʼs specific guidelines.

Action Guidelines
1. Yokowo supports the TCFD recommendations, and besides formulating
and implementing concrete measures to achieve the target of reducing
greenhouse gas emissions at our plants (Scope 1 and 2) by 35% by
FY2030, compared to FY2014, we will also be disclosing details of
the measures taken, through the Carbon Disclosure Project (CDP)
framework.
2. Yokowo will continuously and actively promote energy saving, resource
conservation, and recycling to contribute to the protection of the
global environment.
3. In respect of chemical substances which are harmful to both theenvironment and human body, Yokowo will prevent environmental
pollution by implementing preventive measures and action plan, which
include those for the case of abnormal and emergency operation, andwill minimize the use of hazardous chemical substances.
4. Yokowo will comply with all relevant environmental laws, regulations,and each customerʼs specific requirements, and intend to enhance ourenvironmental management by our original internal standards.
5. Yokowo will set objectives and goals for our environmental activities
and also improve our environmental management system continuously
by periodically reviewing the objectives and goals.
6. Through in-house education and publicity, Yokowo will promote all theemployeesʼ recognition of involvement in environmental preservation
and will make these activities take root as daily duties.
7. Yokowo ensures that all the employees including those of affiliatedcompanies are fully aware of the environmental policies, and will
disclose them to the public on request.
8. Yokowo will contribute to the development of a sustainable society byconsidering the impact on biodiversity in all its business activities.
Enacted: June 1, 2005 Revised: October 15, 2021

Addressing Climate ChangeWith the aim of reducing direct greenhouse gas emissions (Scope
1 and 2), we are drawing up plans for the adoption of renewableenergy at our plants in Japan (in Tomioka City, Gunma Prefecture),
China, Vietnam and Malaysia, which are our Companyʼs main
sources of greenhouse gas emissions. In 2021, we are working
to give more concrete shape to our plans for adopting renewableenergy at our Vietnam Plant and Tomioka Plant, which are ourmost important production facilities.
Regarding the reduction of Scope 3 greenhouse gas emissions,as most of the employees at the Tomioka Plant currently commute
to work by car, we are implementing a plan to persuade a local
railway company to establish a station near the plant, so that
employees will be able to commute to work by train, and weare also planning to establish charging points for electric vehicles
at the plant. Through the implementation of these concrete
strategies, we are aiming, initially, to secure a “B” evaluationfrom the CDP. We will be steadily disclosing details of theimplementation status of these concrete measures through the
CDP platform, and also on our Company website.
As of 2020, the Yokowo Group had implemented a variety ofactivities directed towards meeting the goal of a year-on-year 1%
reduction in the greenhouse gas (GHG) emission factor.
We are currently still in the process of collecting data regarding
greenhouse gas emissions in 2014—the base year for determining
greenhouse gas emissions reduction—and will disclose thisinformation once the calculations have been completed.
▼CO2 emissions and emission factor
CO2 emissions (t)*1
21,0000.425

Emission factor (CO2 emissions/sales)*2
0.5

20,5000.388

20,00020,156

19,50019,00020,361

20,222

0.372

0.334

20,0070.334

18,754

0.4
0.3
0.2

18,5000.1

18,00017,500

Environmental Management Systems
ISO 14001 Certification
Since its individual production bases received ISO 14001
certification starting in 1998, the Yokowo Group has continued
with its work in environmental activities. There were no
infringements of environmental regulations in FY2020.
* Please see our website for more details on the status of ISO14001
Certification Acquisitions.
https://www.yokowo.co.jp/english/company/csr/environment.html

41

Yokowo 2021 Integrated Report

Issues and Results of Activities
The Yokowo Group reviewed its Medium-Term Environmental
Plan in 2014 and identified four issues that need attention—
addressing climate change, management of water resources,
resource recycling, and working towards zero hazardous
chemical substances. For this, Yokowo sets goals and activities tobe achieved each year.
At a meeting of the Board of Directors held in October 2021,
it was decided that Yokowo would express its support for therecommendations of the TCFD and disclose details of the measurestaken by the Company through the CDP, with the Board of
Directors supervising this directly. Subsequently, revisions were madeto the Companyʼs Environmental Policy and Action Guidelines.

2016
2017
■ CO2 emissions

2018
2019
Emission factor

2020*

0.0

(FY)

*1 Electricity CO2 conversion factor is calculated using the following:
Domestic: TEPCO Energy Partner, Inc Basic Emission Factor
Overseas: IEA Official Factor*2 Up until FY2019, consolidated sales were aggregated using internal
exchange rates. However, starting from FY2020, Yokowo has switchedover to aggregating consolidated sales based on real exchange rates, anddata for FY2019 and previous years have been retroactively adjusted.

Management of Water Resources
Of the water used within the Yokowo Group, the majority is fordomestic-type uses; because of the characteristics of our products,
hardly any water is used in the production processes. We areworking to achieve our goal of a year-on-year 1% reduction inwater consumption, measured by per unit of sales.
Additionally, we are monitoring the quality of plant
wastewater using our internal standards, which are more rigorous
than legal requirements. At the Tomioka plant, we are recovering

all hazardous chemical substances in discharge from ourgalvanization processes, and have achieved zero emissions into
public waterways.
▼Water usage and usage rates
Water usage (m3)*3
7.486
350,000
340,000

Usage rate (water usage / sales)*4
6.389

329,947

330,000

344,632
335,868

331,726

320,000

8
7

5.687

6

4.722

6.134

5

310,000

4

300,000

3

290,000

2

283,178

280,000
270,000

1
2016■ Water usage

2017

2018
Usage rate

2019

0

2020
(FY)

*3 As the aggregation method has been reviewed, data for FY2019 andprevious years have been retroactively adjusted.
*4 As the per unit indicator has been reviewed from water usage per
employee to water usage per unit of sales, data for FY2019 and previous
years have been retroactively adjusted.

Resource Recycling
The Yokowo Groupʼs main products are electronic components,
and the main types of waste that we generate are metal andplastic waste, and waste cutting oil, that are generated during the
production processes. With regard to these main types of waste,
we are working to conserve resources. As well as promoting a
reduction in the quantities of waste generated by our businessactivities, we have also set a recycling rate of at least 80% as atarget. The inclusion of Yokowo Vietnam in the data aggregationfrom FY2020 onwards has led to a substantial increase in therecycling rate.
▼Quantity of waste and recycling rate
Waste (t)Recycling rate (%)*5

1,400
1,200

1,052

956

1,000

1,150

90

1,249
1,056

87.1

70
60

63.0

800

56.4

50

59.4

53.8

600

40
30

400

20

200
0

80

10
2016
■ Waste2017
2018
Recycling rate

2019

2020

0

(FY)

*5 The recycling rate is the share of waste handed over to recycling firms.
We are experimenting with the use of recycled plastic in plastic molding
processes. We are also working on the development of original recycling
technology for cutting oil, in collaboration with a local vocational college.

TopicsIn September 2021, we received third-party certification(scope 1 and 2) for greenhouse gas emissions. In the
future, we will expand the scope of monitoring of ourgreenhouse gas emissions, and ensure this information isdisclosed to the public.

Yokowo 2021 Integrated Report42