Topre GroupCSR Report 2022
Corporate Social Responsibility( including SDGs )Topre Group CSR Report 2022

High-level concepts of the Topre GroupCONTENTS
Basic Principles
High-level concepts of the Topre Group  2
Overview of the Topre Group  3
Message from the President  5
Topre’s CSR (including the SDGs) 7

The Topre Group’s mission is to create products and services by maximizing its technical expertise in order tocontribute positively to the societies in which it conducts business.
The Group will not only pursue excellence in its economic performance, but also carry out business activities as agroup of international companies with the highest ethical standards, which will promote a Topre Group image thatwill be acknowledged and respected.
This philosophy will guide The Topre Groups domestic and international business actions, while also continuously
seeking to enhance the Group’s long term prosperity and making positive contributions to the societies in which itis engaged.

Environment

Advanced
technology,
products andservices

Environmental management  11
Development of environmentally-considerate products 13
Conservation of biodiversity 14

Ethnical andconscientious
business
operations+

Carbon neutrality  15
Reduction of environmentally hazardous substances  19

Code of Conduct

Environmental issues: 2022 Special feature  20

1. Compliance with law, internal regulations andsocial morality
 We comply with all laws and regulations applicableto the company’s activities.
 We establish and comply with internal regulations
for the implementation of fair and transparent
corporate activities.
 We observe morals and norms as a member ofsociety.
 We have established an internal reporting window,
respond appropriately to violations and prevent andcorrect them.
 Managers establish a corporate culture with highethical standards.
 Managers establish internal systems preventing
situations that would violate these Action Guidelines.
2. Contributions to society We provide products and services that make society
safer, more convenient and more comfortable.
 We respect the culture and customs of surrounding
communities, engage in activities and contribute totheir development.
3. Fair and equitable relationships
 We build fair, equitable, and moderate relationships
with stakeholders.
 We maintain transparency in our transactions anddo not provide entertainment or exchange gifts thatdeviate from common sense.
 We have no relationships whatsoever with antisocial
forces and respond resolutely and systematically tounreasonable demands.
 We disclose corporate information on the details ofmanagement and business activities in a timely andappropriate manner.
 We do not engage in wrongful conduct or acts thatlack fairness and impartiality with regard to politicaland government officials.

Society
Products and services  23
Supply chain management 25
Respect for human rights 27
Diversity in human resources  28
Work styles and education  29
Safety and health  31
Social contribution activities  32

GovernanceCorporate governance  35
Internal control activities  37
Intellectual property activities  39
Responsibility to shareholders and investors  40

ESG data collection  41
Third party opinion  45
Editorial policy 46-1-

Topre Group CSR Report 2022

4. Respect for human rights and diversity
 We respect human rights and do not tolerate
discrimination or harassment based on race,
creed, gender, nationality, physical characteristics
or any other reason in any case.
5. Environmental protection
 The Topre Group as a whole is working on theprotection of the global environment.
 We strive for resource savings by promoting the
3Rs of reduce, reuse and recycle.
 We work positively on the reduction of greenhousegas emissions.
6. Safety and health We give top priority to ensuring the safety andhealth of employees.
 We eliminate industrial accidents and create safeand healthy work environments.
7. Company assets
 We prohibit the private diversion of company
assets and their use for anything other thanbusiness purposes.
 We do not leak or use corporate information orassets illegally.
 We acquire, use and dispose of assets bylegitimate procedures and not for the interests ofany specific person.
8. Information security
 We establish and comply with regulations, etc., on
the management and protection of personal andconfidential information.

Topre Group CSR Report 2022-2-

Overview of the Topre Group

Overview of the Topre Group
Company profile

Business bases / number of employees
Capital 5,610 million yen (as of March 31, 2022)
Stock Listed on the Prime Market of the Tokyo Stock
Exchange
Business description
Press-related products,
Temperature controlled logistics-related products,
Air conditioning equipment-related products,
Electronic equipment-related productsCompany name Topre Corporation
Established

April 30, 1935

Topre’s product group

We deepen businessand expand ourbusiness domains
while applying coretechnologies

Press-related productsTechnology
Automobile
parts

Dies

Temperature
controlled logisticsrelated products

Press
processing
technology

・ Topre Corporation: Head Office, Sagamihara Plant, Hiroshima Plant, Tochigi Plant, Gifu Plant,
Saitama Plant
Topre Group companies [consolidated: 5,959 people]
Japan [2,691 people]

Overseas [3,268 people]

・ Topre Corporation

・Topre America Corporation

・ Toho Transportation Co., Ltd.

・Topre Autoparts Mexico, S.A. de C.V.

: Less than 50 people

・ Tokyo Metal Pack Co., Ltd.

・Topre (Foshan) Autoparts Corporation: 50 people

・ Tokyo Kinzoku Co., Ltd.

・Topre (Xiangyang) Autoparts Corporation: 100 people

・ Tokyo Multifastener Co., Ltd.

・Topre (Wuhan) Autoparts Corporation: 500 people

・ Toprec Corporation

・TOPRE (THAILAND) CO., LTD.

: 1,000 people

・ Topre Kyushu Corporation

・Topre India Pvt. Ltd.

・ Topre Tokai Corporation

・PT. TOPRE REFRIGERATOR INDONESIA

・ Mitsuike Corporation

Air conditioning
equipment-related
products

Freezers

As of March 31, 2022

Siroccofans,
etc.

that boast highmarket sharein the industry

Keyboards,
etc.

Electronicequipment-related
products

Main customers

Main products

Topre (Wuhan) Autoparts
Corporation

Topre (Xiangyang) Autoparts
Corporation

Topre Corporation, etc.

Topre America
Corporation

Press-related products
Automobile
manufacturers

Temperature controlled
logistics-related products
Transportationcompanies

Air conditioning
equipment-related
products

Press products for automobile
・ Front / center / rear pillars
・ Door beams
・ Wheel house

Refrigerated vehicles
・ Energy saving direct-connection
systems・ Power generation systems
・ Cooling and heating systems
・ Frozen and refrigerated
warehouses
・ Special containers

Topre (Foshan) Autoparts Corporation

Topre India Pvt. Ltd.

PT. TOPRE REFRIGERATORINDONESIATOPRE (THAILAND)
CO., LTD.

Financial data (consolidated)
Sales

Air conditioning
manufacturers
House
manufacturers
Equipment
companies

Residential ventilation systems
Fan filter units
Medical clean units
VAV air conditioning systems
Cooling unit for electrical enclosure
Desiccant Humidity Control Ventilator

Ordinary profit(100 million
yen)

2,500
2,000

1,912

2,014

2,136

2,145

2,336

-3-

Financial institutions
RetailersOEM, etc.

Topre Group CSR Report 2022

Keyboards
Touch panels
Card readers
PINPAD(100 million
yen)

250

247
217

200

1,500

150

1,000

Electronic equipmentrelated products

Topre Autoparts
Mexico, S.A. de C.V.

165

170

2020

2021

107

100

500

50

0
2017

2018

2019

2020

(Fiscal year)

0

2021

Topre Group CSR Report 2022

2017

2018

2019

(Fiscal year)-4-Message from the President

Message from the President~ Aiming to be a company that contributes
to society and prospers permanently ~Topre Corporation
President and Representative Director

Yutaka Yamamoto

Publication of CSR Report
Until now, each division and affiliated company has worked individually on CSR, the SDGs and the
reduction of CO2 emissions due to differences in product areas (sales areas). In addition, in recent years,
CSR activities at each base have become time-consuming due to the expansion of automotive
equipment-related business in Japan and expansion overseas. However, in promoting sustainable andglobal management recently, the group has had to work together with a sense of speed on various social
issues such as the environment. In particular, countermeasures against climate change (reduction of CO 2
emissions) are essential. Having this idea, we established a group-wide Promotion Division in December
last year.
We conduct CSR activities with sustainability (the SDGs) in mind. In order to share and promote the sameideas within the Topre Group both in Japan and overseas, we took this opportunity to reconfirm andreview our Basic Philosophy and other high level concepts and basic policies. The company’s Basic
Philosophy of “Aiming to be a company that contributes to society and prospers permanently” is based on
CSR and sustainability, and we intend to instill this high-level concept in each and every employee of thegroup. First, we are disclosing the CSR-related information that was lacking at the company and givereports having established the details of activities to date and the themes to be emphasized among theSDGs.
I think the world is undergoing significant change, but we will continue to be a company that looks to the
future, and move towards truly being a company that contributes to society and prospers permanently.

Concept of sustainability

Responding to climate change

We are in an age when various risks can occur,
such as changes in social values and behavior due
to the recent outbreaks of COVID-19, the impact of
the situation in Ukraine on resources and theeconomy, and the great earthquakes that are
expected to occur in future. In such circumstances,
I think that in order to enhance sustainability in thesense of surviving as a company, we will need to“secure profits and maintain the ability to continue
supplying products to customers in future too.” Indoing so, we will determine how to respond to thesustainability (SDGs) of society as a whole andcontinue our activities incorporating these efforts
into our corporate management. I believe that thecontinuation of these activities will lead to theimprovement of corporate value and growth into a
company that is trusted by society.

Each of the four divisions has technologies
particular to them and I believe that these willcontribute to the reduction of CO2 emissions. For
example, the DesiTop desiccant outdoor air
processing unit for buildings is a product that
contributes to ZEB (net zero energy buildings) by
saving energy while creating a comfortable air
conditioning environment. Our automotive hightensile material press processing technology
contributes to fuel savings by reducing vehicle
weight. The GBS system, which can stop idling in
refrigerated vehicles, also saves fuel, and thecompany’s PC keyboards, which have a very longlife span, reduce CO2 emissions by reducing
product waste. The company’s Development
Department is working with the Ministry ofAgriculture, Forestry and Fisheries to develop
nano-hydroelectric power generation as arenewable energy source.

By strengthening our CSR (SDGs) initiatives, we
can enhance the company’s resilience and survive
the current situation of significant change where weare pressed by various risks. We will take thetiming of Topre’s new corporate framework as agood opportunity to move forward as a sustainable
company that looks towards the future.

We announced our CO2 emission reduction targets
at the end of last fiscal year. However, theIntergovernmental Panel on Climate Change(IPCC) has reported that the responses to climatechange is still insufficient, and it is also possiblethat we will have to accelerate the reduction of CO2
emissions. It is difficult, but we will promote CO2
reductions, which are very important efforts.
June 2022-5-

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Topre’s CSR (including the SDGs)

Topre’s CSR (including the SDGs)
CSR policy

CSR education

Basic way of thinking
Topre contributes to society by giving top priority to theprovision of products and services that reduce
environmental impacts.
1. As a company, we strive for fairness andtransparency by complying thoroughly with laws
and regulations.
2. We promote social contribution activities andinitiatives for sustainability.
3. The company as a whole responds toenvironmental problems and implements
environmental conservation initiatives positively. In
particular, we emphasize efforts to combat climatechange (CO2 reductions).
4. We enhance and develop technologies to provide
products and services useful to society throughcustomer satisfaction.
5. We provide safe and healthy work environments forall employees.

In order to strengthen CSR activities, wereconfirmed and reviewed the Topre Group’s highlevel concepts and basic policies. We will distributecards containing these high-level concepts to allgroup employees and advance CSR activities witha common awareness.

Dialogue with stakeholders
We ensure transparency by disclosing corporate information appropriately to stakeholders, and strive for mutual
dialogue and cooperation.

Stakeholders

We provide customers with high-quality products and services, valuecommunication with them, and strive to meet their trust and expectations.

Customers
In addition, we also promote understanding of CSR
by implementing CSR training in the form of elearning and transmitting information on CSR
through the internal intranet. In fiscal year 2021, we
held several explanatory meetings for related
divisions and shared recent information on CSR(SDGs, ESG).

6. We promote CSR activities cooperatively throughcommunication with stakeholders.

Business
partners

The group has established a CSR promotion
system headed by top management to implement
CSR initiatives. Full meetings will be held twice ayear to formulate basic policies and plans on CSR
management and annual priority policies for CSR
activities.
PromotionsystemThe Sustainable Development Goals (SDGs), adopted
by the United Nations in 2015, are global goals for 2030
addressing social issues such as poverty, employment
and the environment.
The company will engage with various issues facing theworld and contribute to the realization of a sustainable
society, namely the achievement of the SDGs, throughits business activities.

The company strives to raiseawareness of initiatives both insideand outside the company by
distributing SDGs badges.

President
Director in charge of CSR andclimate change measures

 Daily sales activities
 Maintenance Exhibitions

Shareholders
and investors

Employees

Secretariat(CSR Promotion Office andClimate Change Measures
Department) Plant tours
 Company website

Our business partners are important for us to produce high-quality products, andwe believe the establishment of cooperative systems is important. We strive tobuild relationships of trust with business partners and for understanding andcooperation towards the realization of a sustainable society.
 Daily purchasing activities Supplier conference

Contributions to the SDGs
CSR promotion system

Main opportunities for dialogue

 QC competition presentation
 Company website

The company raises management transparency by disclosing accurate and fair
information in a timely manner, and strives to build relationships of trust withshareholders and investors through constructive dialogue that leads tounderstanding of the company’s business activities.
 General meetings of shareholders Financial results briefings

 IR website
 Individual interviews with institutional
investors

We respect human rights based on the high-level concepts of the Topre Group,
and aim to create an environment in which each and every employee candemonstrate their abilities to the maximum.
 Various training and programs
 Plant tours by the president
 Company newsletter Labor-management council
 Establishment of consultation desks  Intranet Industrial physician interviews

We are working positively on social contribution activities and environmental
conservation in each country and region.
Topre
・ 4 divisions *1
・ Each global system *2Group companies
・ Domestic companies *3・ Overseas companies *4

Local society Educational support for the next generation
 Support for the promotion of sport
 Regional exchanges

 Plant tours
 Cleanup activities*1: Automotive Equipment, Refrigeration Equipment, Air Conditioning
Equipment, Electronic Equipment*2: Topre global systems: Internal Control Committee; Operations,Purchasing and Quality Control Headquarters; ISO14001(Environment) Secretariat; Safety and Health Committee*3: Domestic companies: Toho Transportation, Toprec, Topre Kyushu,
Topre Tokai, Mitsuike*4: Overseas companies: USA, China (3 companies), Thailand,
Mexico, India-7-

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Topre’s CSR (including the SDGs)

Topre’s CSR (including the SDGs)
CSR Materiality

CSR-related initiatives and targets* Blue: CSR Materiality

The process of identifying important CSR issues and associating them with the SDGs
The company identified CSR Materiality to work on in accordance with the following process, and associatedthem with important SDGs.

Theme

Setting of important CSR
issues
Evaluation of validity
Evaluate the validity of issues
through discussions withrelated parties in each divisionand information gathering toscrutinize whether or notissues conform with changes
in global conditions and theenvironment.

Prioritization of issues
Prioritize social issues
based on their level ofimpact on Topre and theirlevel of impact on
stakeholders, andevaluate their importance.

Grasping of current stateof CSR issues
Evaluate and make a list of
the social impacts ofdevelopment, procurement,
production and sales withreference to the review
items of the GRI standards
and SRI evaluations.

Reconsider prioritization fromthe company and stakeholder
perspectives, deliberate upon
the issues at a meeting of the
CSR Formulation Committee
meeting headed by the
President, and confirm.

Items to work on

Reduction of CO2
emissionsThorough implementationof chemical substancemanagement

E

Environment

Biodiversity initiatives
Reduction of water
resource consumption
Reduction of waste
generation
Compliance withenvironmental laws andregulations

Materiality map
Large

Level of impact on
stakeholders

Important
CSR issues

Association of the important CSR
issues identified with the SDGs
(Yellow)

Safety andhealthImplementation of special
medical examinations
Implementation of stresschecks* Placing of SDGs logo on related pages

Respect for human rights

Large

Topre’s CSR Materiality

Environment
Society
Governance

Related SDGs (1 to 17)

Page
S

Reduction of CO2 emissions

13

P15-18Establishment and operation of environmental
management

 Acquisition of ISO 14001 certification: Alldomestic and overseas bases
 Integrated acquisition of ISO 14001 certification:
Domestic bases--

Thorough implementation of chemical
substance management

 Establishment and operation of internalmanagement rules

12.4

P19

Development of environmentally-considerate
products and technologies

 Development of equipment related to renewableenergy Proposal of technologies that connect toenvironmental conservation

7.2, 9.4, 12.2, 13

Cooperation with suppliers

 Promotion of green procurement

12.4

P25-26

Respect for human rights

 Education on human rights and diversity
 Implementation of human rights due diligence5, 10.2, 16

P27-30--

Cooperation with suppliers

 Promotion of CSR procurement

16.b

P25-26

Strengthening of corporate governance Building of group governance--

Strengthening of information security

 Publication of CSR reports
 Enhancement of disclosed information
 Establishment of an information management
system across the group
 Review of BCP

Topre Group CSR Report 2022

-

-

11.b

P37-38

 Acquisition of ISO 14001 certification: Head Office,Toho, Toprec, Tokai Promotion of the integrated acquisition of ISO
14001 certification: Domestic

 Determination of management rules andapplication to each division
 PRTR (class I designated chemical substances)
Reduction of the use of specified substances Continuous operation of management rules Elimination of the use of PRTR specified
substances (class I designated chemical
substances) Development of renewableenergy-related equipment
 Proposal of technologies thatconnect to environmental
conservation

 Commercialization of nano-hydroelectric power
generation
 Building of a refrigerating machine system for EV
and FCV Vehicles
 Launch of new products(Improvement of humidity-controlling equipment
energy saving) Automotive: Body structure proposals conscious of
LCA Refrigerators: Development of a lineup of electric
refrigerators (including RH and HP), andintroduction of low-GWP refrigerants
 Air conditioning: Promotion of the switch to heatpump products with low-GWP refrigerants
 Electronics: Reduction of packing materials(Use of recycled paper / abolition of outer boxes)

 At least 1 activity a year at eachplant
 Use of rainwater / reclaimed
water Suppression and reuse of waste
generated
 Confirmation of compliance:
Domestic bases subject to laws
and regulations

 Promotion of the reduction ofindustrial accidents
 Promotion of environmental
improvements in hazardous
workplaces Follow-up of workplace mental
health measures Education on human rights anddiversity
 Implementation of human rights
due diligence Human resource development
tailored to each individual
Exchanges with andSocialcontributions to local
contributions
society At least 1 activity a year at each
plant

Establishment andoperation of quality
management

 Acquisition of IATF 16949
certification: Automotive related
 Acquisition of ISO 9001
certification: Product-related

Cooperation with suppliers  Promotion of CSR procurementG 30% reduction compared to fiscal year 2020
(scope 1, 2)

 Continuation of activities- Concrete planning of initiatives

 Use at domestic bases (plants / daily life)

 Waste reduction: 4.4% reduction compared tofiscal year 2020

 Waste reduction: 20% reduction compared tofiscal year 2020

 All bases: At least once a year Compliance rate: 100%
 Green procurement evaluation method and start ofevaluations
 Achievement of targets for accidents notaccompanied by lost worktime
 Accidents accompanied by lost worktime: 0 Implementation of education at each base-- Continuation of activities- Continuation of activities-

 Topre and group companies
Implementation rate 100%

 Roll-out to suppliers 100%

 Topre implementation rate 100%

 Topre Group companies’ implementation rate100%

 Implementation of unconsciousness bias training  Ratio of female managers of at least 5%
 Creation of accepting and diverse  Employment of more than 110 female employees  More than 130 female employees (March 2026
workplaces Compliance with the statutory employment rate for target)
people with disabilities-

Human rights
and labor

Quality Acquisition of IATF 16949 certification:
Automotive-related
 Acquisition of ISO 9001 certification: Productrelated

 Promotion of the reduction of CO2 emissions inJapan and overseas
 Integration of CO2 reduction items by theEnvironmental Improvement Committee of eachdivision

Main targets and measures
for fiscal year 2030
(Long-term targets) Establishment and operation ofinternal management rules

Activities of diverse humanresources Creation of an organization thatallows flexible work styles

P13-14
P20-22

Establishment and operation of quality
management

Strengthening of risk management-9-

Main initiatives
 Reduction of CO2 emissions in production
activities

IR activities for investors

 Reduction of CO2 emissions in
production activities

Cooperation with suppliers  Promotion of green procurement

Safety in the workplace

Items

Main targets and measures
for fiscal year 2023
(The last fiscal year of the 15th
medium-term management plan)

Main initiatives

 Acquisition of ISO certification: All
Establishment and Acquisition of ISO 14001 certification: Saitama
domestic and overseas bases
operation of environmental
Plant
 Integrated acquisition of ISO
management(Integration with Sagamihara Plant)
certification: Domestic bases

Development ofenvironmentallyconsiderate products andtechnologies

Level of impact on Topre

Yellow: SDGs-related matters

Strengthening of corporate
Governance Building of group governancegovernance Publication of CSR reports
IR activities IR activities for investors
 Enhancement of disclosed
information
 Establishment of an information
Information Strengthening ofmanagement system across the
management information security
group
Risk
Strengthening of risk
management management

 Review of BCP

 Implementation of work-life balance training Rate of taking childcare leave by male employees
wishing to do so 100%
 Rate of taking of childcare leave by female
employees 100%
 Career plan / design training
 Establishment of a system that rewards people
who take on challenges
 Continuation of activities
 Acquisition of IATF 16949 certification:
Sagamihara (Topre, Metal Pack, Multi), Kyushu

 CSR procurement evaluation method and start ofevaluations
 Inspection and strengthening of groupmanagement system

 Verification of understanding of work-life balance
management Completion of roll-out to domestic groupcompanies Acquisition of IATF 16949 certification: Tokai,
Mitsuike, USA Acquisition of ISO 9001 certification: Toho
Transportation, Toprec, Indonesia
 Zero cases of misconduct

 Enhancement of non-financial information

 100% completion of response to CG code Thorough implementation of management rules
and maintenance of management tools Zero serious information security incidents

 Response to major earthquakes
 Response to infections
 Addition of climate change risk (Response to
TCFD) Completion of response to TCFD

Topre Group CSR Report 2022

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Environment

Environment

Environmental management
The group aims to be an environmentally friendly company in the execution of
corporate activities.

Environmental
policyGlory environmental

Environmental management system

visionCompliance with environmental
Environmental
education
laws and regulations

tal audits

The company has shared the following policy with thegroup as a whole and is expanding environmental
activities.
In addition, we are working on environmental activities
with all-employee participation through theenhancement of awareness of all employees involved inordering, design, development, production and delivery.

Topre Group environmental policy< Basic way of thinking >We promote our business activities while
recognizing that conservation of the global
environment is the most important issue for all
humankind.
We aim to be an environmentally friendly company,
strive to save resources by promoting the 3Rs of
reduce, reuse, recycle, and work positively on the
reduction of greenhouse gas emissions.
1. We have established an environmental
management system and each and every
employee carries out environmental activities.

In order to operate our environmental activities
properly, we have acquired ISO 14001 certificationfor each place of business and have establishedan environmental management system.
Each place of business implements environmental
activities for continuous improvement based on theenvironmental management system.
State of acquisition of ISO 14001 certification atdomestic and overseas production bases (acquisition
rate 80%)
Acquisition in Japan

Acquisition overseas

Sagamihara Plant

USA

Hiroshima Plant
Tochigi Plant

MexicoChina

Gifu Plant
Topre Kyushu

ThailandMitsuike< The Topre Group system >Director in charge of the environment

2. We promote the development and purchasingof environmentally-friendly technologies andproducts aimed at the reduction ofenvironmental impacts.

General managers ofeach place of business
Environmental
Secretariat

4. We promote the efficient use and reuse ofresources.
5. We comply with laws, regulations and otherrequirements and manage chemical substances
appropriately.
6. We strive for the prevention of environmental
pollution and the protection of the environment
by suppressing the use and discharge ofharmful substances.
7. We strive to conserve biodiversity through local
contribution activities.

We are striving to prevent environmental pollution in
our business activities, products and services, andto enable the continuous implementation ofenvironmental conservation activities.
We confirm from an objective standpoint based oninternal and external audits whether or not theenvironmental management plans established ineach division conform with the environmental
management system and whether environmental
management systems are functioning in theoperations of each division, and we makecontinuous environmental improvement while
implementing the PDCA cycle.

Environmental risk management
In order to reduce environmental risks, eachdivision extracts environmental risks related to its
business activities once a year. In order to preventor mitigate environmental
accidents andEnvironmental risk
emergenciesmanagementthat may occur, or the environmental
impacts that may occur along with accidents or
emergencies, we have established procedures andmake efforts to train employees and maintainthose procedures.

Environmental management(Quality Assurance Department 2) *1

3. We strive for the reduction of greenhouse gas
emissions by suppressing energy use andimproving efficiency.

-11-

Environmental
Environmen audits

Divisionorganization*1: Climate Change Countermeasures Department is incharge of measures to reduce CO2 emissions.

In future, we plan to advance the unification ofenvironmental management systems by
integrating the environmental management
systems that have acquired certification at eachplace of business successively as the Topre
Group.

Topre Group CSR Report 2022

Compliance with environmental
laws and regulations
We identify and comply thoroughly with applicable
environmental laws and regulations. In
implementing our environmental management
systems, we obtain information on laws andregulations and other requirements related to ourbusiness activities and products, identify
applicable laws and regulations, and communicate
them to related divisions.
If laws and regulations are established or revised,
if there is a change in the business environment
such as the introduction of new equipment due tothe launch of new products, or a request from astakeholder, we review our systems each time.
In addition, we also conduct internal audits oncompliance with laws and regulations.

We think that we need to provide all employeeswith appropriate environmental education in orderto operate environmental management systems
effectively, and are planning environmental
education in each division. Environmental
education is divided into three categories: “selfawareness education” in which all employees learn
about the deterioration of the global environment
and environmental management systems;“education on environmental impacts and work” foremployees who have an impact on environmental
performance and compliance obligations; and“qualification education” for employees who dowork that requires qualifications.
We work on education planning after considering
the details of business, our environmental policy
and objectives, and clarifying our environmental
education needs.

Management and reduction ofchemical substances
With newly purchased substances, we obtain asafety data sheet (SDS) from the supplier, ask
Environmental Management Division to evaluate
the use, toxicity, usage amounts, etc., of thechemical substances they contain, and implementcertain, system-based management after theevaluation.

Effective use of resources
Waste generated from each place of business issorted fully to ensure appropriate treatment,
environmental preservation and the improvementof public health. We sort generated waste into
different materials as far as possible to turn waste
into resources and reduce its volume. In addition,
to make effective use of resources, we improveyield rates during production and reuse detergents.

Topre Group CSR Report 2022

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Environment

Environment

Development of environmentally-considerate products
We are working on the development of environmentally-considerate products
to reduce the environmental impacts of products throughout their life cycles.

Environmentally-considerate products

Environmentally-considerate products● Press-related products
One of the company’s major strengths is its hightensile steel plate processing technology. The
company makes products from high-tensile steel,which is particularly strong and extremely difficult
to mold, with its advanced technologicalcapabilities.
To support the reduction of CO2 emissions while
ensuring automobile safety, we will pursue further
weight reductions and greater strength for eachpart and provide technologies for the global
environment and a new automotive society.
Front biller

Battery case● Temperature controlled logistics-related
products● Air conditioning equipment-related
products

 GBS
GBS, one of the major products of our temperature
controlled logistics-related products business, is a
refrigeration system equipped with a generator.
This enables the refrigerated and frozen vehicles
to stop idling, which was previously not possible,and contributes to the reduction of CO2 emissions
by not idling during cargo handling.

 DesiTop Desiccant Humidity Control Ventilator
for buildings
As part of Japan’s energy-saving policies, CO2
emissions in the commercial and household sectors in
2030 will have to be drastically reduced by about 40%
compared to fiscal year 2013. Equipment for greater
energy saving will be essential due to thepromulgation of the Act on the Improvement of Energy
Consumption Performance of Buildings and the future
ZEB target.
The company used the technology it has accumulated
in heating and cooling, ventilation and air blowing tocommercialize the DesiTop outdoor air processing
unit, which has energy-saving effects. This product isa heat pump type that does not require a heat source(cold / hot water, outdoor unit). A total heat exchanger,
heat pump and desiccant rotor are built in to control
indoor humidity in three stages. The system saves
energy, of course, and also realizes a comfortableindoor preserving stable humidity. This desiccantsystem saves about 30% of energy annuallycompared to conventional systems.

Rear pillar

Integrated refrigerationequipmentInternal temperature
setting range

Twin rotary
Electric compressor
Door beam

Center pillar

Wheel house

Control box

Permanent magnet generator (PMG)
Topre original* CO2 emissions reduction effect 15,455 t-CO2 / year
[Gross product weight (980, 1180 MPa high tensile steel)x Weight reduction ratio (comparison with 590 MPa hightensile steel)x Rate of fuel efficiency improvement rate (reduction ofgasoline)
x Gasoline CO2 emission coefficient] Expansion of application of cold-formed 1,470
MPa material to press parts
We are advancing the development of technology
for cold-formed 1,470 MPa press parts, which havethe same strength as the hot stamp method withlittle CO2 generated, to switch from the hot stamp
method, which generates a large amount of CO2.
 Development and manufacture of battery cases
for electric vehicles
With battery cases for electric vehicles, it isimportant to ensure characteristics such as watertightness, battery storage capacity and strength, andwe are developing technologies that lead to highquality and low cost by making full use of our
production technology know-how and structural
analysis.

-13-

Demonstrates overwhelming power generation
during low rotation.
Highly efficient generator ideal for urban
distribution.

Generator
speedElectricity
generating
capacity● Electronic equipment-related products Non-contact electrostatic capacitive keyboards
The company’s ergonomically-considerate
keyboards realize quiet typing and exceptional key
touch. In addition, because they minimize fatigue forusers, even with extended use, and are highly
durable, they are used by various customers as
specialized input devices in a range of commercial
settings such as financial institutions, data entry atdata processing centers, logistics, transportation,
medicine, ATMs in convenience stores andbroadcasting environments.
The REALFORCE series of keyboards for generalsale use the same non-contact electrostatic capacity
type system as the business keyboards, which havegained high acclaim in OEM production.

Battery box(Optional)

Weight: 13 kg
Dimensions: 164 mm (l) x 140 mm (w) x 180 mm (h)Inverter / converter* CO2 emissions reduction effect 433 t-CO2 / year
[High durability (comparison with general keyboards) x
Number of units produced x CO2 emission coefficient ofplastic waste]

Maximum continuous use time:
90 minutes
Minimum full charge time:
10 minutes* CO2 emissions reduction effect 4,871 t-CO2 / year
[Number of units operating in the GBS market
x Fuel reduction effect (diesel) x Diesel CO2 emission coefficient] Adoption of low global warming potentialrefrigerants
We have led the industry in adopting R452A
refrigerants (for low temperatures) and R513A
refrigerants (for medium temperatures) in refrigerated
vehicles. These are replacement refrigerants with alow environmental impact at about half the impact
conventional refrigerants have on global warming.

* Global warming potential
R452A 46% reduction (conventional refrigerant:
comparison with R404A)
R513A 56% reduction (conventional refrigerant:
comparison with R134a)

Topre Group CSR Report 2022

* CO2 emissions reduction effect (per system) 1.7 t-CO2 / year
[Reduced power (comparison with conventional air conditioning
system) x CO2 emission coefficient of electric power]

Conservation of biodiversity
We work on the conservation of biodiversity towards the realization of a sustainable society.

Biodiversity conservation initiatives
The company has been working on the reduction ofenvironmental impacts at each of its bases. Over the past few
years, we have not been able to participate in external
initiatives due to the COVID-19 pandemic, but we recognize
once again that conservation of biodiversity is essential for therealization of a sustainable society, and we will plan andimplement initiatives based on the relationships between ourbusiness activities and biodiversity.

Topre Group CSR Report 2022

Participation in mangrove planting activities
to maintain a diverse ecosystem(November 2021: Topre Thailand)-14-

Environment

Environment

Carbon neutrality
We are expanding initiatives towards a decarbonized society.

● CO2 emissions based on the Topre

Responses to climate changeGroup base fiscal year
The company established a Climate Change Countermeasures Department in December 2021 to grasp thecurrent state of CO2 emissions throughout the group and to manage action plans aimed at the reduction of
CO2 emissions.
Responses to climate change, a global-scale issue, is now a necessity. As an initiative towards theachievement of carbon neutrality, the company grasped CO2 emissions in its production activities and set
long-term targets for their reduction. The group as a whole, both in Japan and overseas, will advance
reductions step-by-step to achieve “a 30% reduction in CO2 emissions in fiscal year 2030” and “carbon
neutrality in fiscal year 2050,” based on improvements in energy saving, the installation of solar panels,
purchasing of renewable electricity, and the trading of CO2 emissions credits.
The group will fulfill its social responsibilities towards the realization of a sustainable society by implementing
various measures.

● CO2 emissions reduction targets

The group’s CO2 emissions associated with fuelconsumption and power consumption were about
68,800 tons in the base year, fiscal year 2020. We
plan to reduce these emissions in line with thetargets.

● System of initiatives aimed at the
reduction of CO2 emissions
Aiming for carbon neutrality by 2050, weestablished a climate change measures system
consisting of top management, and are working on
this while considering what to do to achieve ourgoals at all times.

(1,000 t-CO2)
80

Board of Directors

68.8
President
Power system

60

40

Fuel system

Director in charge of CSR andclimate change measures
52.3

32.2

36.7
Secretariat

We set the target values using fiscal year 2020 as the base year.
・ CO2 emissions in production activities

20

Fiscal year 2030: 30% reduction in emissions
Fiscal year 2050: Carbon neutrality

20.6
16.5

0

* Base year Annual
target2020
Long-term reduction
targetFiscal year 2021–2030

Fiscal year 2031–2050

3.0%(3.5%)

Fiscal year 2030: 30%

100%
CO2 emissions(Fiscal year 2040: 65%)

Total

70%

Fiscal year 2050: 100%Solar
panels (B)Solar panels (A) Investmentrecoverable
installation, PPA,
etc.

Purchasing ofSolar panels (B) Cases where
investment will bedifficult to recover(35%)

renewable energy power-15-

Fiscal year 2030

Topre Group CSR Report 2022

4.9

Japan

Topre

Group companies

 4 divisions
 Each global system

 Domestic companies
 Overseas companies* We increased the accuracy of calculations of CO2 emissions
so these figures are slightly different from the CO2 emissions
announced on the company website in March 2022.

● External representations
Details other than the target setting, etc., described here are described below.

 Support for TCFD Recommendations

 Release of CDP answers

While advancing measures against climatechange, Topre registered its agreement with
the TCFD to express its positive responses toclimate change.

Topre has been responding to the CDPquestionnaire since 2017. From fiscal year
2022, we will disclose our answers and theresults of evaluation, and accelerate ourmeasures and activities against climate change.

Trading of CO2
emissions credits

0

Fiscal year 2020

31.7

Overseas
Fiscal year 2020 (base year)● Subject Topre Group companies:- Japan: Topre, Toho Transportation, Toprec, Topre
Kyushu, Topre Tokai, Mitsuike- Overseas: USA, China, Mexico, Thailand, India

Energy saving
improvements
Solarpanels (A)11.6(CSR Promotion Officeand Climate Change
Measures Department)

Fiscal year 2040

TCFD Supporters
https://www.fsb-tcfd.org/supporters/

Fiscal year 2050

Topre Group CSR Report 2022

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Environment

Environment

Carbon neutrality
We are expanding initiatives towards a decarbonized society.

Activities for the reduction of CO2 emissions● Energy saving and CO2 emissions
reduction initiatives

Overview of considerations< Lighting >Switching to LED lights in plants and offices haslargely been completed and we are advancing thechange from mercury lamps, which consume a lot ofelectricity, to electricity-saving LED lights. At Tochigi
Plant, for example, we reduced electricity
consumption by about 70% by switching somelighting from mercury lamps to LED lights.
< Facilities >We are upgrading to highly efficient powertransformers and air conditioners. In addition, we arealso working on everyday improvements such as
reducing power consumption by adjusting the timingof the turning off of power to air compressors and theheating time of heat source equipment for eachseason.
< Logistics >We are conducting activities aimed at the
improvement of fuel efficiency by setting annual fuelefficiency targets. In addition, as an initiative to
reduce CO2 emissions associated with
manufacturing, we are actively introducing batterypowered forklifts, which can be expected to reduce
CO2 emissions compared to conventional LPGpowered forklifts. Sagamihara Plant has introduced atotal of 25 battery-powered forklifts since 2017.
As an initiative for carbon neutrality, we plan toinstall solar panels in stages on all plant roofs where
installation is possible starting in fiscal year 2022.
・ Overview of CO2 emissions reduction plan

[1] First, we will thoroughly implement everyday
improvements for energy saving and thesuccessive installation of solar panels on
rooftops where they can be installed.

Topre

Sagamihara
Plant

Details of initiatives
 Reduction of power consumption by switching to LED lighting
2019: Reduction effect 115,249 kWh / year (replaced 624 fluorescent lamps)
2020: Reduction effect 11,259 kWh / year (replaced 147 fluorescent lamps)
2021: Reduction effect 1,608 kWh / year (replaced 21 fluorescent lamps)
 Reduction of power consumption by upgrading air conditioners
2019: Reduction effect 11,367 kWh / (upgraded 5 units)2021: Reduction effect 2,156 kWh / (upgraded 1 unit) CO2 reduction by switching to battery-powered forklifts
2019: Reduction effect 22.0 t-CO₂ / year (replaced 4 vehicles)

Example solar panel installation (installation
planned in fiscal year 2022)

2020: Reduction effect 24.5 t-CO₂ / year (replaced 8 vehicles)
2021: Reduction effect 25.2 t-CO₂ / year (replaced 7 vehicles)

Topre Kyushu
 Introduction of solar panels in-house Advance installation in stages at each plant First, install solar panels on the roof of Kurume
Plant as step 1.

Hiroshima Plant

Reduction of 578 t-CO2 / year

Tochigi Plant

 Shortening of compressor operation time
Adjustment of heating time for each season
 Reduction of power consumption by switching to LED lighting
2020: Reduction effect 351,852 kWh / year (mercury lamps)

Topre Gifu Plant
 Installation of solar panels under PPA contracts(PPA: Power Purchase Agreement) Installed on part of roof at Gifu Plant

 Introduction of environmentally-considerate vehicles
2021: Replaced gasoline-powered company vehicle with hybrid vehicle(1 vehicle)

Reduction of 194 t-CO2 / year
Topre Sagamihara Plant
 Installation of solar panels under PPA contracts
 First start with a plant roof where installation ispossible right away
 Install on Press Plant 2 / one room of Saitama
Plant

Topre Tochigi Plant
 Installation of solar panels under PPA contracts
 Installation on East Warehouse of Plant 3- We have started activities in each division of
Topre and the nine divisions of domestic affiliates.

-17-

Base

[2] Examples of items for consideration (other thansolar panels)- Plant air leakage prevention and supply control- Switch to highly efficient transformers- Change company vehicles to EVs- Change to centralized control of air conditioning- Upgrade to heat exchange type ventilation
systems- Adaptation of office buildings, etc. to ZEBs

Reduction of 173 t-CO2 / year

- We have formulated a new CO2 emissions reduction
plan for 2022 to 2025.

● Results of energy saving and CO 2 emissions reduction activities (Japan)

Topre Group CSR Report 2022

Gifu Plant

 Reduction of power consumption by upgrading transformers
2021: Changed from 1991 model to 2019 highly efficient models

Topre Tokai Reduction of power consumption by switching to LED lighting
2020: Reduction effect 279,000 kWh / year (replaced 199 mercury lamps)
2021: Reduction effect 139,000 kWh / year (replaced fluorescent lamps)

Mitsuike Reduction of power consumption by switching to LED lighting
2019: Reduction effect 219,938 kWh / year (replaced mercury lamps
and fluorescent lamps)

Reduction of 155 t-CO2 / year

Topre Group CSR Report 2022

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Environment
Reduction of environmentally hazardous substances

Environment
Environmental issues: 2022 Special feature

We are implementing initiatives aimed at reducing the use of environmentallyhazardous substances in our business activities.

Chemical substance management● Initiatives to reduce environmentally hazardous substances
We are working on the management and reduction of chemical substances that lead to environmental
impacts in products designed by the company. We are promoting initiatives aimed mainly at the reduction ofchemical substances subject to the PRTR Act and the management of chemical substances contained in
products.

Aiming for a recycling-oriented society
At present, in order to contribute to the realization of a decarbonized society, we are developing a pipelinetype nano-hydroelectric power generation system that uses unused energy (energy creation) in industryacademia cooperation, making full use of the company’s plastic processing, control and fluid technology.

What is nano-hydroelectric power
generation?

 Temperature controlled logistics-related products
We are working on the reduction of toluene, xylene, and methylbenzene, whose emissions are particularlyhigh in manufacturing.
 Air conditioning equipment-related products
The paint used in the blower product production process was subject to the PRTR Act, but we carried out
testing and evaluations, and after obtaining customer approval, switched to a paint that is not subject to the
PRTR Act. Due to this initiative, we were able to consider the health of workers and management became
easier too as we were able to unify three kinds of paint into one.
 Electronic equipment-related products
We have introduced a dedicated management system for information on chemical substances contained in
products and parts. Due to this initiative, we have become able to handle survey requests from customers
and the work of providing answers smoothly, as well as searches specifying laws and regulations based on
information on contained substances tabulated at the product, intermediate material and part levels.
By managing information on chemical substances contained in products positively, it becomes possible toobtain good evaluations from customers.
Chemical substances for automotive parts are controlled using the automotive industry’s IMDS system *1.
We have stipulated chemical substance management rules based on ISO 14001 for our various purchased
items, and are implementing chemical substance management. We have also stipulated a “List of Controlled
Chemical Substances,” a management standard, and ask suppliers to manage the chemical substances in
the products they deliver with that and to deliver products managed under the same thinking as that of thecompany.
(Included in the “Topre Group Green Procurement Guidelines”)
With purchased electronic products, we manage chemical substances using chemSHERPA*2.

*1
IMDS: A supply chain environmental informationtransmission system developed by the Verband
der Automobilindustrie (VDA) of Germany with
the ELV Directive in mind.

List of Controlled Chemical Substances

Development of pipeline-type nano-hydroelectric power generation system*2chemSHERPA: A data creation support tool led by the Ministry of
Economy, Trade and Industry for the proper
management of information on chemical
substances contained in products throughout the
supply chain, from upstream companies todownstream companies

Development initiatives
Focusing on pipeline-type waterways, we are aiming tocreate a nano-hydroelectric power generation system thatcan be installed simply and is easy to use. In addition,
Development Department is playing a central role inproduct development through a public-private partnershipwith the Ministry of Agriculture, Forestry and Fisheries,
and collaboration with Tokushima University, Kanazawa
Institute of Technology and others.
We are currently conducting field verification towards
commercialization. In addition to laboratory experiments
using our own experimental facilities, in collaboration with
Tokushima University and Kanazawa Institute ofTechnology, we are extracting issues and taking
measures towards practical application, assuming actual
operating environments.
The plan from now on, through a public-private
partnership project with the Ministry of Agriculture,
Forestry and Fisheries, is to propose deregulation, systemdevelopment and standardization, implement a roll-out toexpand the market and establish a production and quality
system in fiscal year 2022, and to develop products forcommercialization by the end of fiscal year 2023.

While the use of renewable energy is advancing
worldwide, hydroelectric power is expected to bea stable power source unlike solar and wind
power, but large-scale dam development leads
to environmental destruction and new
development is not progressing. On the other
hand, although the amount of electricity
generated is small, nano-hydroelectric power
generation (less than 10 kW), which has been
overlooked until now, is attracting attention as asystem that can generate electricity using
waterways such as agricultural water, which isabundant in rural areas, and wastewater fromfactories.
Further, these systems are characterized bytheir energy resilience as they can be built
independently of existing large-scale powertransmission systems and can supply electricity
without being affected by large-scale power
outages (blackouts).

Overview of nano-hydroelectric power generation
High land

WatersourceAgricultural
water

Drop

Simplewater
supplyFields, etc.

Rural area
Industrial
water

Nano-hydroelectric
power generation

Universities, factories, etc.

-19-

Topre Group CSR Report 2022

Topre Group CSR Report 2022

-20-

Environment

Environment

Environmental issues: 2022 Special feature

Features of the nano-hydroelectric power
generation system under development
Nano-hydroelectric power generation has fourmain features.
Generator[1]
1[2] Device for the removal of dust that affects
power generation
The biggest issue for small hydropower generationis measures against clogging caused by dust.
Because ordinary bar screens often become
clogged and interfere with stable operation, we
have developed a unique, unpowered, pipelinetype dust removal mechanism and have been able
to confirm that stable power generation is possible
in field verification.

Rectifier
unit

[2]
2

3
[3]

 Field verification with Tokushima University
We are conducting field verification at a landlocked
trout aquaculture farm in Mima City, Tokushima
Prefecture. We installed the developed product at
the pipeline terminals that supply water foraquaculture and are verifying the system assumingthat the electricity generated will be used as a
power source for the campground andmanagement facilities.

To generator

 Field verification with Kanazawa Institute ofTechnology
We are conducting field verification using
agricultural water in Hakusan City, Ishikawa
Prefecture. Aiming at being able to maximize useof the power generation potential of the region, we
installed multiple connected power generation
systems to a single agricultural pipeline and areverifying whether it is possible to generate power
efficiently.

4[4]
Inflow

Power control
Dust removal device

Verification of connected operation with anagricultural waterway
Configuration of power generation system under trial[1] Development of small, high-efficiency
turbines
For the core turbine in hydroelectric power
generation we adopted a phase inversion dual
micro turbine developed jointly with Tokushima
University. Because it is small and highly efficient,
it can be used with piped agricultural water
facilities. The turbine is a shape that applies thecompany’s fluid analysis technology and fluid
control technology, with the rear turbine offsetting
the swirling flow generated by the front turbine byreversing it, enabling highly efficient power
generation.

Centrifugal
separation ofdust by swirlingflow
Dust removal device under trial[3] Multiple connection operation (micro grid)
Although the potential for power generation is small
at each of the water taps built for agricultural use,
we are developing a system that can connect
electrically and operate at multiple points, because
a lot of power can be generated by connecting
multiple nano-hydroelectric systems.

Example of the use of lighting in a campground kitchen

Future development
From now on, we will advance development using the plastic processing, control and fluid technologies thatare the company’s strengths, and in fiscal year 2022, through a public-private partnership with the Ministry ofAgriculture, Forestry and Fisheries, we will propose deregulation, system development and standardizationand establish a production and quality system while conducting activities towards market expansion to become
able to provide the system as an energy creation product that can contribute to society. We will advance plansfor commercialization by the end of fiscal 2023.

[4] Simple construction using one package
The weighting of civil engineering work is high inthe costs of introducing hydroelectric power
generation, and the lower the amount of power
generated, the harder it becomes to introducehydroelectric power. This is why use ofhydroelectric power generation is not spreading.
Therefore, we are aiming for a system that is easy
to install, featuring a single package that cangenerate electricity by simply connecting pipes
such as agricultural water use facilities.

Small, highly efficient turbine under trial-21-

Topre Group CSR Report 2022

Topre Group CSR Report 2022

-22-Society

Society

Products and services
We provide products and services of a quality that can make all customers feel at ease to establish the“Topre quality” that our customers recognize.

Quality Policy

Quality management system

At Topre, we are conscious of our quality
assurance philosophy in all processes and at allbases, and in order to unify and improve the Toprebrand, we have formulated the Group Quality
Policy to be worked on and have rolled it out torelated divisions.
In addition, every year, each plant and related
division prepares a Quality Activity Plan based on
the Medium-Term Management Plan, the Quality
Policy, and the Quality Management Policy, andengages in quality activities.

The company’s plants, global subsidiaries andsuppliers have standardized their quality assurance
systems based on the standard requirements of ISO
9001 or IATF 16949, customer requirements andlegal requirements, and built quality management
systems that they now operate and manage.
The Topre Group has built a global system with
Quality Headquarters positioned at the top of theorganization.
In addition, Quality Assurance Department 1 is
responsible for maintaining and managing the quality
system for press-related products produced at theTopre Group and suppliers, and Quality Assurance
Department 2 is responsible for maintaining andmanaging the quality system for company products
related to temperature controlled logistics, airconditioning equipment, and electronic equipment.

Quality assurance in the planning
Qualityassurancein the planningandanddevelopment
stagesInformation provision and quality
labeling

development stages

Topre Group Quality Policy< Basic way of thinking >We provide products and services of a quality thatcan make all customers feel at ease to establish the“Topre quality” that our customers recognize.
1. We have established a quality management
system and each and every employee carries
out quality assurance activities.
2. We take on the challenge of improving quality inwork at all times, from development toproduction and sales.
3. We identify market needs and trends accurately,and provide customers with optimal products,
services and information.

Quality control system
Quality
Headquarters

Quality Assurance
Department 1(Press Products Division)

Quality Control
Department(Press products)

Domestic andoverseas
affiliates

Quality Assurance
Department 2(Topre product divisions)

Quality Control
Department(Topre products)

Domestic andoverseas
affiliates

4. We develop human resources through educationand training in order to maintain quality activities.
5. We strive to ensure quality and safety while
complying with customer requirements and laws
and regulations.
6. We follow the PDCA cycle at all times to makecontinuous improvements.
7. We maintain good relations with cooperating
manufacturers and strive to improve quality.

Consistent quality control
The company is striving to create products thatcan satisfy customers by strengthening productdevelopment and technologies from a customer
perspective in order to respond to diversifying
needs.
Further, in cooperation with affiliated companies,
we are making efforts to improve customer
satisfaction by feeding back information on
customer needs and problems to products quickly.

At the initial stage of product planning anddevelopment, the company designs the standards,
regulations and laws that apply to products fromthe perspective of environmental considerations
and lifecycle, and conducts design verification
through analysis, verification of safety using
prototypes and testing assuming various
environments of use to ensure product quality.

Initiatives for QC activities
Continuing since 1970, the company has held atotal of 64 QC competitions as of 2021. This was
the seventh holding of a competition to which QC
circles from overseas bases were invited.
In 2020 and 2021, we held these events as video
competitions with the results of QC activities
recorded on video due to countermeasures against
COVID-19. At the QC competition in 2019, prior to
the COVID-19 pandemic, a total of 16 QC circles
from 13 bases in Japan and overseas took partafter passing through qualifying at their respective
bases, including seven circles from America,
China, Thailand and Mexico, watched over by anaudience of more than 300 people. At the circle
presentations at overseas bases, greetings were
exchanged in Japanese before presentations were
given on daily improvement efforts that took
advantage of the features of each base. They were
all well received. The company’s QC activities arean opportunity for us to deepen our friendships
with overseas members, with whom we usually
have little interaction, and to stimulate each other.
We will continue to work on improvements throughQC activities.

Topre is striving to provide appropriate information
on how to use its products in order for customers
to use the company’s products safely for a long
period of time.
We have prepared product labels and instruction
manuals so that customers can operate products,
carry out daily maintenance and handle errors
safely. In order to prevent misjudgment andmisreading, we do not only use text information
embellished with fonts and written expressions, but
combine that with illustrations, giving consideration
also to ease of reading and understandability.

Initiatives for the improvement ofmaintenance quality
We have established a dedicated department anda system for staff with product knowledge torespond quickly to customer inquiries about
product explanations, repairs and replacements. In
addition, we have established a service systemthat can be deployed nationwide through a systemof cooperation with other companies. By sharing
maintenance and service information, we maintain
uniform maintenance quality nationwide.
In general, with products of high quality,
maintenance is easy to understand andconsideration is also given to making it easy andsafe. We are advancing efforts to improve productquality in newly developed product designs bygiving feedback on points for improvement
obtained from customers to Design Division andreflecting that in designs, thereby improving thefuture quality of maintenance.
We provide customers with highly marketableproducts and easy-to-understand instruction
manuals and maintenance explanations. Internally,
for staff and service personnel, we will enhance
product education and maintenance manuals thatare easy-to-understand through the use of photos
and videos. In addition, we will also work on thefurther improvement of maintenance quality by
establishing a system that enables us to respondquickly and correctly to newly developed products
as well.

2019 QC competition (when the competition washeld normally)-23-

Topre Group CSR Report 2022

Topre Group CSR Report 2022-24-Society

Society

Supply chain management
We build fair, impartial and moderate relationships with the people related to the Topre Group.
We maintain highly transparent transactions with business partners, cooperating businesses
and suppliers.

Strengthening of partnerships with
Strengtheningof partnerships
with businessbusiness
partners

Purchasing
Purchasing policyGreenprocurement
Promotion of green

In March 2022, we formulated the “Topre Group
Supplier CSR Guidelines” for the further promotionof CSR procurement.
Under the Basic Philosophy of “contributing tosociety through the creation of products andservices using its outstanding technologies,” theTopre Group clarifies its approach to CSR as well
as requirements for business partners concerning
human rights, labor, health and safety, anticorruption measures and consideration for theenvironment, and promotes CSR initiatives acrossthe supply chain together with business partners.

In March 2022, the company formulated the “Topre
Group Green Procurement Guidelines” as its basic
way of thinking on consideration for theenvironment in procurement activities.
These describe the way of thinking of the Topre
Group on carbon neutrality and ask business
partners to reduce CO2 emissions. In addition, as
an initiative at the procurement stage, we promote“green procurement,” with which we procure frombusiness partners who cooperate in environmental
improvement activities materials, parts and units
considerate of the environment.

partners

policyTopre Group Purchasing Policy< Basic way of thinking >The company has shared the following policy with
the Topre Group as a whole for the procurement ofmaterials. We build relationships of trust withbusiness partners, promote procurement
emphasizing CSR and environmental
conservation, and roll-out initiatives towards thedevelopment of a sustainable society.
1. Compliance with law, regulations and social
morality
We promote fair and transparent purchasing
activities in compliance with related laws andregulations as well as social morality andnorms.
2. Environmental protection
We implement purchasing activities that lead toenvironmental conservation activities based on
our environmental policy, and promote “green
procurement activities.”
3. Fair and equitable transactions
We provide open, fair and equitable entry
opportunities regardless of nationality, company
size or whether or not we have a track record ofbusiness.
4. Selection of business partners
We select based on comprehensive
consideration of quality, cost, technology,
delivery time and other capabilities, as well as
management attitudes and systems. In addition,
we strengthen cooperation among eachdivision, domestic and overseas bases andaffiliated companies to ensure the optimal
procurement of materials by using the mass
benefits of centralized purchasing.
5. Building of relationships of trust
We build relationships of trust with business
partners through fair and transparent
transactions, and promote mutual development.
By strengthening trust with suppliers, we realize
flexible and timely parts provision to customers.
6. Information protection
We manage confidential information properly
and do not disclose it without mutual approval.

-25-

CSR procurement

procurement

Our business partners are important for us to
produce high-quality products, and we believe thebuilding of cooperative systems is important.
The company holds a supplier conference once a
year to explain the group’s current situation,
strategies, purchasing policy and Topre initiatives.
In fiscal year 2021, we held the conference in web
format in June with 153 business partners
participating. In future, we will promote
procurement that emphasizes CSR and theenvironment, strive to build relationships of trustwith business partners throughout the group, andaim to contribute to the realization of a sustainable
society.
At QC circle competitions, we share information on
quality and manufacturing processes and consider
issues. We also ask business partners to present
examples of their quality improvements and workwith them to raise awareness of quality.
Moreover, the company’s Parts AcceptanceDivision visits suppliers regularly to conduct on-site
audits of manufacturing processes, provide advice
on improvements, and propose improvements tothe work environment.

Topre Group CSR Report 2022

Supplier conference(fiscal year 2021: held on the web)Business partner hotline● Initiatives for the promotion of CSR
procurement
In fiscal year 2022, in the publication of the “Topre
Group Supplier CSR Guidelines,” we will roll out
guidelines to existing business partners for them tounderstand CSR activities centered on quality,
human rights, the environment and compliancewith laws and regulations, and ask for the diffusionand spread of CSR initiatives.
In addition, we will work on the promotion ofsustainable procurement in cooperation withbusiness partners by asking them to fill out a“Confirmation of Agreement,” including matterssuch as cooperation with each guideline.

In order to maintain fair, impartial, and highly
transparent transactions with related business
partners, the group has established a contact point
for business partners to report. This contact point
has been established in a division independent ofPurchasing Division. If we receive a report, weinvestigate the facts and take appropriate
measures.

Purchasing personnel
Supplier CSR Guidelines

Green Procurement Guidelines

Supplier CSR Guidelines
https://www.topre.co.jp/en/sustainability/social/files/en_csr_guideline.pdf

The group provides education to employees
towards the thorough implementation of fair andtransparent transactions and the promotion of CSR
throughout the supply chain, and provides regulareducation and training for procurement personnel.
In recent years, these efforts have led to anincrease in the skills and knowledge of personnel
in charge of subcontracting, compliance, CSR
procurement and other areas of particularimportance.
In addition, we also provide education andguidance on their attitude as employees andbuyers.

Topre Group CSR Report 2022

-26-

Society

Society

Respect for human rights

Diversity in human resources

We respect human rights and do not tolerate discrimination or harassment based on
race, creed, gender, nationality, physical characteristics or any other reason in any case.

We respect diversity and support the potential of people who take on challenges.

Basic policy on respect for humanrightsTopre Group basic policy on respect for humanrights< Basic way of thinking >In conducting business activities, we fulfill our
responsibility to respect human rights, which are
fundamental human rights. We raise “respect forhuman rights” in the Topre Group Action Guidelines,
which is the standard for employee behavior, and are
implementing initiatives for human rights and labor
having clarified in the Action Guidelines that “In orderto respect human rights and accept diversity in the
conduct of business activities, the company will notdiscriminate or harass on grounds of race, creed,gender, nationality, physical characteristics or any
other reason.”Through this policy, we will build a system for therespect of human rights and handle this appropriately.
This policy applies to all officers and employees of theTopre Group.
1. Respect for human rights
 In order to respect human rights and accept
diversity, we respect the diverse abilities,
individuality and sense of value of each andevery employee.
 We do not tolerate discrimination based on race,
creed, gender, nationality, physicalcharacteristics or any other reason, or any
harassment that harms human rights orsomebody’s personality.
 We do not tolerate child labor, forced labor or
human trafficking.
2. Responses to human rights risks
We apprehend human rights violations as ahuman rights risk and build and manage
appropriately processes to identify, mitigate andprevent human rights risks.
3. Protection and relief of human rights
We will strive for the protection and relief of humanrights if a human rights violation is made clear.
4. Appropriate labor management
We comply with laws and regulations concerning
labor that are applicable in each country andregion, and provide and manage appropriate work
environments for employees.
5. Education and enlightenment
We implement appropriate education andenlightenment activities for all officers andemployees.
6. Business partners
We ask all business partners to understand thispolicy, and to respect and not violate humanrights.
7. Information disclosure
We disclose the state of implementation of ourinitiatives for the respect of human rights to thegeneral public.
-27-

Responses to human rights risks
The group defines human rights risks as “risks that
could infringe on the human rights of people
related to the Topre Group and its business
partners.” In order to ensure thorough respect forhuman rights throughout the supply chain, we haveestablished items on respect for human rights inthe “Topre Group Supplier CSR Guidelines,” andare working with business partners to promote
initiatives towards compliance with those items.
In fiscal year 2021, there were no cases involving
child labor or forced labor.

Improvement of awareness ofhuman rights
The company is making efforts for the
improvementof employee awareness of human
Systems for consultation andrights, including
theof discrimination
reportingonprohibition
human rights
and the prevention of harassment.
In fiscal year 2021, we implemented training for
employees in Japan and other complianceeducation aimed at the prevention of harassment.

Consultation on human rights
Aimed at preventing harassment in the workplace,
we have set up a dedicated consultation desk toraise awareness not only among generalemployees, but the entire workplace, including
managers. The methods for consultation are by email, telephone or letter, and matters will be
accepted even if anonymous.
Human Resources Planning Department
investigates information on harassment frompeople seeking consultation and if a case ofharassment is found, considers measures to betaken against the offender and for the person
seeking consultation. The department follows up
with the offender and the person seeking
consultation while giving full consideration tofurther harassment by the offender.

Topre Group CSR Report 2022

● Hiring of foreign employees

Promotion
ofdiversity
diversity
Promotion of
We aim to create an environment in which each andevery employee, regardless of race, creed, gender,
nationality, age or disability, can work actively,
demonstrating their abilities to the maximum.

● Promotion of female participation
Based on the Act on the Promotion of Female
Participation and Career Advancement in the
Workplace, the company has formulated an action
plan to increase the number of female employees
and create an employment environment in which
women can participate, and is implementing
initiatives towards its achievement.
Action plan targets for the promotion of female
participation and advancement(April 1, 2021 to March 31, 2026)

Regardless of race or nationality, the company
selects people in accordance with their experienceand skills. We do not implement special selection
for foreign nationals as we conduct recruitment
activities with an awareness of equal employment
for all applicants.
When the employment of foreign nationals inJapan is decided, we support them in theacquisition of a work visa, provision of a place ofresidence, and through the various procedures.
In addition, we accept foreign technical trainees
positively, which leads to the invigoration of thecompany through the realization of diversity andacceptance.
As of November 2021, foreign employees from six
countries of North America and East Asia areworking actively at the company.

● Employment of people with disabilities■ Target
Employ at least 130 full-time female employees■ Support measures(1) Secure substitute personnel during childcare
leave, and review the details of work andwork systems(2) Implement initiatives to improve the abilities
of employees after childcare leave(3) Promote the use of a shorter work hours
system and flexible work hours system for
employees after childcare leave● Rehiring of seniors
With regard to the employment of the elderly, we
have introduced an ongoing employment system
based on the Act on Stabilization of Employment
of Elderly Persons. In anticipation of the raising of
the mandatory retirement age in the future, we aremaking efforts to improve the treatment of rehired
retired employees by raising the wage level ofretired employees and developing work systems
considerate of individual circumstances such as
nursing care.
Even if they are above 65 years old, we willcontinue to employ employees in an environment
where they can continue to work in accordancewith their wishes and aptitudes.

There are currently people with various disabilities
working actively at the company. Rather than takethe simpler tasks of daily work and promote thehiring of people with disabilities only as a “quota
for hiring disabled people,” we establish work rolesin accordance with people’s characteristics suchas their personality, experience and skills.
Our goal is not to hire people with disabilities, but
to create a work environment in which people cancontinue to work actively for a long time incooperation with each division that accepts them.
In addition, from January 2022, we began using a
farm, part of a social farm, and started on an
initiative to create a new point of contact for theemployment of people with disabilities.
In future, we will continue to create a work
environment so that people with disabilities canplay active roles, and will promote the employmentof people with disabilities positively.

Social farm
(We grow vegetables including komatsuna, mizuna andradishes.)

Topre Group CSR Report 2022

-28-

Society

SocietyWork styles and education● Initiatives for overtime work

Work-life balance
The company is striving to enhance leave systems andwelfare programs so that each and every employee
can enjoy their daily work and life comfortably.

● Support for flexible work styles
The company is supporting flexible work styles byintroducing a flextime system that matches theworkload and nature of each employee.
In addition, if COVID-19 infections occur, werecommend employees work from home or work in
staggered hours in accordance with the type of work
they do to prevent infections.

● Balancing support systems
Balancing work and childcare
Based on the Act on Advancement of Measures to
Support Raising Next-Generation Children, thecompany formulated and is implementing an action
plan to enable employees to balance work and theraising of children and allow all employees todemonstrate their abilities to the full.
Action plan targets for the promotion of measures tosupport the development of the next generation(April 1, 2021 to March 31, 2026)■ Male employees ... More than 30 employees takechildcare leave during the plan period■ Female employees ... Maintain 100% taking ofchildcare leave during the plan period

State of taking of childcare leave(People)

Male

20

100

Rate of return (%)
100

Female

100

100

100
15

100

15

5
0

10

9

10

6

5

8

75

7

50

7
8

5

6

0

0

1

3

2017

2018

2019

2020

25
0

2021(Fiscal year)

Balancing of work and nursing care
We have a system under which employees can use
nursing care leave up to three times within a total of
93 days for each family member who needs nursing
care, and a short work hours system for employees
to provide nursing care for family members whoneed it.
-29-

Based on the enforcement of the revised Labor
Standards Act, the company raises “understanding ofactual working hours,” the major premise in the
management of overtime, as the most importantmatter. At present, all of society is paying attention to“overtime cap regulations,” but if we make efforts
towards “work style reforms” without knowing theworkload of each and every employee, work methods
and unreasonable, wasteful and redundant work, it
could lead to the rampant unpaid “service overtime” ofyesteryear. Recognizing that “work style reform”
cannot be achieved overnight, and believing that sucha situation should be avoided, the company is making
efforts to grasp the current situation and gather
opinions. It is conceivable that it may take time torealize this goal, but we are striving to raise awarenessamong all employees, also including managers.

Human resource development
The company’s human resource policy is to cultivate“human resources who are independent ineverything, always have a bird’s-eye view of thesituation, and work logically.”
With the globalization of economic activities and thedeclining birthrate and aging population of Japan, weare at a stage where we need to rethink pastpractices and ad hoc work methods.
It is not easy to educate adults whose personalities
have formed as “individuals,” but we are making
efforts towards the development of human resources
who grasp situations objectively and act logicallytowards their goals.

● Development of global human resources
The company implements overseas training centeredon young employees aimed at the development of thehuman resources who will support our global systemin the future. By experiencing and learning about
overseas realities and practices, we are aiming tocultivate an international sense and improve thequality of employees so that they can respond to the
expansion of our global system in the future with abroad international perspective and free thinking.

● Development of employees who haveacquired skills
We are making efforts towards the development of
employees who have acquired skills such as educationon the “Topre way of manufacturing” for the certaintransfer of manufacturing knowledge and skills tooccur, “superior education for section managers, plant
managers and leaders by rank” and “education on
practical improvement methods” aimed at the
improvement of productivity.

Topre Group CSR Report 2022

● Initiatives towards career formation
In addition to implementing our human resources
policy thoroughly and ensuring proper
understanding of employees’ own responsibilities,
we make efforts aimed at the acquisition of theknowledge, technology, skills, planning ability andjudgment required to perform duties accurately
and promptly, and the development of broad
perspectives.
Career training
The company has three main training systems,
which can be divided into “education by division,”“hierarchical education” and “education byfunction” based on the aim of the training. We
clarify the education required for each division’s
work, including specialized knowledge and skills,
and promote the drafting of educational plans.
Training courses include: “divisional education,”
which provides education and training on theknowledge and skills required for work by division;“hierarchical education,” which provides educationon the knowledge, technology, skills, management,
etc., required at each level from new employees to
mid-level employees, core employees andmanagers; and “education by function,” which
provides education on the knowledge, technology,
and skills required for manufacturing, quality
control, compliance, etc.
Policies for human resource development andinternal environment development
https://www.topre.co.jp/en/sustainability/social/policy/human_resources.html

Labor practices

and we have introduced a target management
system that evaluates managers based on theirown evaluations. We implement clear evaluations
based on results in the same way as general
positions, with managers confirming target progress
and their level of achievement through feedback
interviews.
In addition, we do not handle wages, work
conditions, transfers, education, etc., in a
discriminatory manner based on reasons such as
nationality, creed, external status, race, gender,
religion or age.

● Good relations with the labor union
The company and the Topre Labor Union respect
each other’s differences of position and ways ofthinking, emphasize communication and strive forthe maintenance and strengthening of sound labormanagement relations. We hold labormanagement meetings twice a year at plants andoverall to discuss issues in matters such as work
conditions and production and to communicate
with each other.

● The creation of rewarding workplaces
Implementation of employee awarenesssurveys
The company conducts “employee satisfaction
surveys” and “potential assessments” in somedivisions aimed at the creation of rewarding
workplaces.
Enhancement of the remote work environment● Fair evaluations and treatment
The company uses a human resources evaluation
system that evaluates the processes and results of
employees’ roles and reflects these in compensation
through salary increases, promotions and bonuses.
For general positions, the system as a whole isdivided into 10 grades, and the system is such thatthe higher the grade, the more important the results
evaluation is. There is no gender gap at the samelevel, and we implement appropriate evaluations ofclearly defined roles. In particular, we ensuretransparency by holding feedback interviews withdirect supervisors in each evaluation, and by
engaging in dialogue on matters such as the reasonsfor evaluation results and future growth issues. For
managers, targets are set at the beginning of eachfiscal year in accordance with the three grade levels,

Topre has created a remote work environment thatallows employees to work without having to go to
the company. We are promoting various work
styles in conjunction with the “work from homesystem.”The creation of opportunities for meetings with
employees
The company provides opportunities mainly foryoung employees to meet with Human Resources
Division personnel. During these meetings,
employees are asked about their physical andmental condition, which connects to handling suchas daily follow-up, and leads to understanding of
the capabilities and levels of each individual, andto the implementation of appropriate “hierarchicaleducation” and “education by function.”

Topre Group CSR Report 2022-30-

Society

Society

Safety and healthSocial contribution activities

We make securing safety and health our top priority and create safe and healthy workplaceenvironments.

Aiming for the harmony and development of corporate and social interests, we implement social
contribution activities positively.

Occupational safety and health● Basic way of thinking on safety and health
The company has enacted Safety and HealthManagement Regulations, establishes the mattersrequired for safety and health management, andcarries out continuous occupational safety and healthmanagement independently to reduce the potential
danger of industrial accidents, promote the health of
all employees, promote comfortable work
environments and improve the level of safety andhealth at all plants.
Formulation of a safety standard systems
The Topre Group has formulated a group-widesafety standard system to promote and implement
intrinsic safety based on the principle of respect forpeople - “prioritize safety in everything.” Based on
this safety standard system, we promote safety
activities and establish safety rules to protect thesafety of employees. We are aiming for therealization of zero hazards from zero accidents.

● Holding of lifesaving training sessions
AEDs (automated external defibrillators) are installed inworkplaces and Fire Department personnel visit once a
year to hold training sessions for employees to learn
about cardiopulmonary
resuscitation and how to use AEDs
aimed at providing appropriate firstaid and minimizing employee healthdamage when responding to an
accident or emergency in theworkplace.
Lifesaving training session

In order to create safe and secure work environments,
the company promotes better health through thecooperation of the company, labor union, healthinsurance union, employees and their families.

President / Plant
Manager
Officer in chargeof the promotionof safety● Implementation of medical examinations

Employees
Organization at eachbase

● Occupational safety and health activities
Topre employees definitely receive safety training
when entering the company, and the company
distributes safety guidance to all employees, hasestablished and uses a safety experience room
where employees can experience simulations of thedangers of equipment, etc., and conducts risk
assessments aimed at the creation of workplaces
where employees can work with peace of mind. In
addition, we also installeasy-to-understandstickers on sidewalks
to raise awareness ofsafety.
Safety experience room
-31-

The company has established a Safety and HealthCommittee at all plants, regardless of the number of
employees, and they hold meetings once a month. The
committees implement surveys and hold deliberations
on matters related to safety and health management,
report on the safety and health of employees, andconsider and implement specific measures to address
the problems raised.

Health management and promotion
initiatives

Safety and health systems

Safety Health
Sect.
(Systemmanagement)● Holding of meetings of Safety and HealthCommittees

We are focusing on initiatives towards the health ofeach and every employee based on the regular
implementation of medical examinations and special
medical examinations. Industrial physicians and publichealth nurses hold meetings with employees at healthrisk and provide health guidance, such asrecommending medical examinations and reviews oflifestyle habits, to promote health improvements.

● Responses to mental health care for employees
Clinical psychologists and other mental healthcounselors provide mental health counseling bytelephone and face-to-face.
In March 2021, we were recognized as a “2022 CertifiedHealth & Productivity Management Outstanding
Organization” in the large corporation category of the“Certified Health & Productivity
Management Outstanding
Organizations Recognition
Program” run by the Ministry of
Economy, Trade and Industry.

Topre Group CSR Report 2022

Training support for the next
generation● Acceptance of internships (workexperience)
The company offers summer internships foruniversity students and various kinds of work
experience in actual workplaces.
In addition, as part of our cooperation with university
curriculums, we provide opportunities for practicaltraining and research for the preparation of
graduation theses, and we accept long-term
internships for about five months. We are making
efforts to create better places for practical training
by arranging employees and training environmentsthat provide support matched to themes.

Other social contribution activities● Plant tours
We have currently suspended implementation of thisprogram from the perspective of measures against
COVID-19, but we are implementing plant tours for
local residents and students at some of the
production bases of the group.
Through plant tours, we are deepening theunderstanding by local residents of the group’s
manufacturing and we are also making efforts aspart of our support for the education of the children
who will lead the future.

● Blood donation activities
While the number of blood donation participants has
decreased due to the spread of COVID-19, we arecooperating positively with the Red Cross Blood
Center to eliminate blood shortages. Tochigi Plant
holds blood donation activities three times a year,
and about 60 employees participate each time.

● Local cleanup activities● Support for sport

As part of our workplace environment
improvements and local contribution activities, we
carry out cleanup activities in the area aroundeach base.

Sagamihara Plant and Toprec sponsor SC
Sagamihara, which is based in Sagamihara City,
aimed at invigorating local society.

● Donations to healthcare professionals

 Hiroshima Plant
About 50 employees participate
in cleanup activities around theplant once a month.

 Topre Kyushu
The company donated 1 million yen to the “Fukuoka
Prefecture COVID-19 Health Care Workers Fund” assupport for the health care workers struggling withmeasures against COVID-19 infections.

 Gifu Plant
Plant employees clean up theneighborhood on 6th, 16th and26th each month.
They carry out activities inrotation, in four groups, eachwith about 15 employees
participating each time.

 Topre Tokai
The company donated 1 million yen to Toin Town tosupport countermeasures against COVID-19
infections. In addition, the company donated 1 million
yen to Mie Prefecture’s “‘Love’ Fundraising toSupport Mie in Overcoming COVID-19.”● Donation to the Japan Traffic Safety
Association

 Toho Transportation Co., Ltd.
Company employees clean
around the plant on Monday
and Friday each week.

● Provision of hometown tax payment
goods to Sagamihara City

Toho Transportation Co., Ltd., donated 1.2 million
yen to the Japan Traffic Safety Association, which
carries out activities aimed at the “realization of asafe and secure community with no traffic
accidents.”

The company’s REALFORCE keyboards havebeen available as hometown tax payment goods
from Sagamihara City, where Electronic
Equipment Department is based, since February
2020, and we have been getting a response.
Topre Group CSR Report 2022

-32-

Society

SocietySocial contribution activities

Other social contribution activities● List of social contribution activities
Base
Topre

Sagamihara
Plant● List of social contribution activities
Details of initiatives

 Plant tours:
Due to the spread of COVID-19 infections, this program has beensuspended, but we will consider starting again based on the state of
COVID-19 infections in fiscal year 2022.

Base
Topre Kyushu

Hiroshima Plant

 Local cleanup activities
About 50 employees clean the area around the plant once a month.

Tochigi Plant

 Plant tours:
Plant tours by local elementary school students: Around November (oncea year)Plant tours by the local technical high school: Around March (irregular)

 Plant tours:
We hold plant tours as needed to build relationships of understanding andtrust with regard to manufacturing.
 Local cleanup activities:
Six technical interns and specified skill employees participated in activities
and were able to build trust by interacting with local residents.

 Local cleanup activities:
We clean the area around the plant and the nearest station in May andDecember.
 Holding of events:
We hold a summer festival in July, but it is currently suspended due to the
spread of COVID-19 infections.

Details of initiatives

Topre Tokai Local cleanup activities:
We participated in the Toin Town Cleanup Campaign, which aims to“create an environment in which garbage is difficult to throw out” and for“enlightenment through cleaning activities.” Cooperation with blood donations:
We cooperate positively with blood donations in response to requests fromthe blood center, which sends out a blood donation bus. (Implemented 3
times a year in April, July and November with about 60 people donating
blood each time)
Gifu Plant

 Local cleanup activities:
As part of our 6S activities, we clean the neighborhood on the 6th, 16thand 26th of each month.

Toho Transportation

 Local cleanup activities:
Every Monday and Friday, we clean about 100 meters of sidewalk to thenorth and east of Sagamihara office.

Toprec Support for sport
Aimed at the local invigoration of Sagamihara, a place familiar to theTopre Group, we have agreed a contract with SC Sagamihara as a pitch
signboard sponsor.
 Local cooperation activities:
Atsugi Service Center participates in mass cleanups and summer festivals
sponsored by the Regional Promotion Association.

-33-

Topre Group CSR Report 2022

Topre Group CSR Report 2022

-34-

Governance

GovernanceCorporate governance
We share our Basic Philosophy and act looking for contributions to society and thepermanent prosperity of the company.

● Basic policy on corporate governanceCorporate governance

1. We strive to ensure the rights and equality ofshareholders.

● Basic way of thinking
The mission of the Topre Group is to contribute tosociety through the creation of products andservices using its outstanding technologies. In
addition to pursuing economic results, we conductbusiness activities with high ethical standards andgood sense as a company that is required andrespected by society as an international company.
The employees of the Topre Group working
around the world share this philosophy and strive
to enhance the system of corporate governanceaimed at contributing to society and the permanent
prosperity of the company.

2. We strive for appropriate cooperation withstakeholders other than shareholders.
3. We strive to ensure appropriate information
disclosure and transparency.
4. We make transparent, fair, prompt and decisivedecisions, fulfill our management responsibilities
and responsibilities to make decisions on andsupervise the execution of business as the duties
and roles of the Board of Directors.
5. We strive for constructive dialogue withshareholders.
Corporate governance reporthttps://www.topre.co.jp/en/sustainability/pdf/sustainability-co_governance-governance.pdf

Corporate governance system

General meeting of shareholders

Board of Directors

Accounting auditor
Board of Auditors
Auditors

Directors

Division in charge ofcompany-wide internal control

Internal Control
Committee

Each division and group company
Each department and section

Each department and section

Each department and section

Control within divisions based on
job authority and regulations

Control within divisions based on
job authority and regulations

Control within divisions based on
job authority and regulations

Appointment / dismissal
AuditsReports
Supervision / instruction-35-

Audit Department is given the functions of accounting audits and work
audits as an organization under the direct control of the president.
In addition, we have established an Internal Control Committee consistingof a Compliance Subcommittee, Risk Management Subcommittee andFinancial Reporting Control Subcommittee as the division in charge ofcompany-wide internal control. Audit Department receives reports
regularly from each of these subcommittees and evaluates whether
internal control are being put into practice.
Topre Group CSR Report 2022

External Directors and External Auditors

Board of Directors
The system at the company sees the Board of
Directors cooperate to assume responsibility for
management and business execution. At meetings ofthe Board of Directors held each month, basic
management policies are determined anddeliberations on business execution and specificplans take place. In addition to meetings of the Boardof Directors, we hold monthly meetings to determine
and have intensive discussions on themes for eachdivision. Positive deliberations and considerations
take place at these meetings, and we have amanagement system that enables quick and accurate
decision-making, and flexible and effective
management.
Board of Auditors
We have adopted an auditor system as our corporate
management monitoring system. The Board ofAuditors is comprised of three people in total, one fulltime Auditor, and one legal expert and one accounting
expert as External Auditors, all of whom are men. The
Board of Auditors attends important meetings such as
meetings of the Board of Directors so we have asystem that fully monitors the execution of businessby the Board of Directors.
Internal audits

Representative
Director

Audit Department● Corporate governance system

We established Internal Audit Department as anorganization under the direct control of the President
to implement accounting and work audits and report to
the President and the Board of Auditors. The
company has increased the transparency of the Board
of Auditors by appointing two External Auditors withexpert knowledge and it fulfills the functions ofmonitoring and supervising management. In addition,
while maintaining its independence, the Board ofAuditors meets regularly with the accounting auditor
to further enhance the effectiveness of audits, andconfirms the audit policy, accounting system and otherkey matters that reflect changes. Moreover, it also
exchanges opinions positively on the results of audits
and strengthens its management monitoring function.
Accounting audits
The company appoints an external auditing firm as its
accounting auditor and enters into an audit contract foraudits based on the Companies
Act and the Financial
Group companies
Instruments and Exchange Act.
In addition, the assistants in accounting audits number
22 people including five certified public accountants.

We strive for External Directors and External Auditors
to grasp the details of business in full through theBoard of Directors and the Board of Auditors. In
addition, full-time auditors also communicate directlywith External Auditors as required to communicate
information and provide materials.

● Executive compensation
The company has established the following policies
regarding the determination of the amounts ofcompensation for officers.
1) A compensation system that motivates directors to
perform their duties
2) A compensation system linked to business results3) A compensation system suitable for the roles andresponsibilities of directors
Based on these policies, the compensation system fordirectors consists of basic compensation, short-term
results-linked compensation and medium to long-term
results-linked compensation. The Board of Directors
delegates compensation for Directors to theCompensation Committee (including External
Directors), which is an optional decision-making body,
aimed at enhancing objectivity and appropriateness.
The Compensation Committee determines theamounts of monthly compensation and bonuses foreach Director based on regulations and within the total
amount of remuneration approved at the General
Meeting of Shareholders, excluding stock
remuneration.
Compensation system
 Basic compensation
Monthly compensation is determined for each
Director based on the discussions of theCompensation Committee.
 Short-term results-linked compensation
Bonuses linked to results for a single fiscal year are
determined based on the discussions of theCompensation Committee taking into considerationeach Director’s contribution to results.
 Medium to long-term results-linked compensation
The company provides its own shares, etc., basedon the cumulative number of points granted inaccordance with the degree of achievement ofmanagement indicators for each fiscal year.
The compensation system for Auditors includes only
basic compensation.

Topre Group CSR Report 2022

-36-

Governance

GovernanceInternal control activities
In order to build a corporate culture “that does not violate laws and regulations” and “asystem that does not violate laws and regulations” based on the Basic Philosophy and Action
Guidelines of the Topre Group, we established a basic policy on the development of aninternal control system and are striving for proper and efficient business execution.

Internal Control Committee
The obligation of management to establish aninternal control system to prevent legal violations
and losses was clarified by the Companies Act.
Based on the “Basic Philosophy,” the Internal
Control Committee, which includes therepresentatives of each group company, hasestablished “Action Guidelines” that eachindividual must keep in mind so that everybody
can understand the direction that the Topre Groupis aiming for. We have established regulations,manuals, etc., to embody the Action Guidelines sothat we can promote work efficiently.

Compliance Subcommittee
For the strengthening of compliance management
throughout the Topre Group, we hold meetings of
the Compliance Subcommittee to diffuse
awareness of compliance further among officers
and employees.
Compliance system

Internal Control Committee

Compliance Subcommittee

Consultation
desk(General Affairs
Department)

Consultationdesk(Lawyer)

Risk
Management
Subcommittee

Financial
ReportingControl
Subcommittee

Audit
Department

Risk Management Subcommittee
Risk extraction

Employees / Business partners

Each division● Compliance education
The company implements compliance education andraises awareness through regularly held hierarchicaleducation.

● Establishment of an internal reporting
systemThe Topre Group has established an internal reporting
system and consultation desks for all groupcompanies, and is making efforts to familiarize
employees with the system and establish theenvironment for its use.

● Corruption prevention initiatives
The company has established its “Basic Philosophy”
and “Action Guidelines” and to ensure that all
employees are aware of and comply with them, apartfrom e-learning and DVD training, issues internal
newsletters regularly to provide information on laws
and regulations related to business, and compliance,
and aims for the thorough prevention of corruption.

● Initiatives for the protection of personal
information

From the perspective of respect for human rights, wethink that personal information should be handled withcare, and are striving to ensure the proper handling of
the personal information held by the company.
Topre Group privacy policy
https://www.topre.co.jp/en/sustainability/governance/policy/privacypolicy.html-37-

President

Instructions

Basic policy of the Topre Group on the prevention of corruption
https://www.topre.co.jp/en/sustainability/governance/policy/anti_corruption.html

Compliance
Subcommittee

We hold meetings of the Risk Management
Subcommittee, which conducts surveys of the risksof natural disasters and accidents, and risks atoverseas sites, and reviews their management
systems. Each group company re-extracts and reevaluates the risks assumed for each division andformulates countermeasures.
Risk management system

Audit
Department

Internal control system

Internal control systemsystemPresident

Each division andgroup company

The internal control system ensures
 The effectiveness and efficiency of business The reliability of financial reporting Compliance with laws and regulations concerningbusiness activities
The processes that are incorporated into work andexecuted by all employees in order to ensure theabove constitute the internal control system. In
order to promote work efficiently and comply withlaws and regulations, we have established a“corporate culture that does not violate laws andregulations,” “a system that does not violate laws
and regulations” and “a system for preparing
correct accounting documents,” and carry out
activities that evaluate and correct the current
situation continuously.
The company established an Internal Control
Committee and the following three subcommittees
in order to develop and promote this internal
control system.

Risk Management
Subcommittee
Information security management

Topre Group CSR Report 2022

● Risk identification process
Each division identifies all risks in its business andsubmits them to the Risk Management
Subcommittee. Risks are evaluated based on thetwo points of “magnitude of impact” and “frequencyof occurrence” and summarized on a risk map.
Risks that should be addressed with priority are
selected and measures established for risk
avoidance or mitigation.

● Handling of emergencies
The company has formulated a business continuity
plan (BCP) with the highest priorities of “protecting
and rescuing human life” and “restoring andmaintaining production and services” in response
to “major risks that have a particularly large impact
on the company” such as earthquakes, storms andflooding, and is working on the handling of
emergencies.
Topre Group basic policy on BCP
https://www.topre.co.jp/en/sustainability/governance/policy/bcp.html● Information security management system
The company has established the Topre Group
Information Security Policy to manage and protect
information assets acquired in business activities
appropriately, has built an information security
system and strives for the continuous strengtheningof security.

 Organizational safety management measures
The company complies with laws, regulations andguidelines on the protection of personal information,and strives to protect specific personal information
through all of its business activities. Departmentsthat handle personal information appoint a
responsible person who manages and supervisesthat information and provides education and training
on its handling.
 Technical safety management measures
We are making efforts to strengthen information
security by managing PCs that can connect tointernal networks, introducing systems that prevent
unauthorized intrusion, and restricting external
storage devices based on the control of devices.
 Physical safety management measures
We are striving to prevent information leaks bylimiting the number of employees who can enter
server rooms and by managing records of entry
based on electronic locking.
 Human safety management measures
In order to prevent information leaks, we are striving
to raise awareness of information security by
disseminating information security policies andrules, and providing education on information
management and the prevention of leaks.
 management of information security incidents
We have established a system to mitigate damage
and prevent reoccurrence if an incident related to
information security occurs, such as an information
leak, unauthorized access or virus infection.
Topre Group information security policy
https://www.topre.co.jp/en/sustainability/governance/policy/i_security.html

Financial Reporting Control
Subcommittee
The Financial Reporting Control Subcommittee
conducts regular evaluations of the asset
management and accounting of the group as awhole to ensure the appropriateness of financial
affairs.
The group holds Accounting Division global
training sessions to ensure the accuracy andconsistency of work related to accounting, costs
and finance of the group as a whole.

Topre Group CSR Report 2022

-38-

Governance

GovernanceIntellectual property activities

Responsibility to shareholders and investors

We create intellectual property and are working on the acquisition andeffective use of rights.

We strive for the proper disclosure of information to stakeholders and for mutual
dialogue and cooperation.

● Development of human resources forintellectual property

Intellectual property activities● Basic way of thinking
The company promotes the creation of intellectual
property in Japan and overseas and the acquisitionof intellectual property rights and uses themeffectively in business. At the same time, thecompany conducts activities to avoid patent disputes
and other risks, and to contribute to thestrengthening of its development and sales
capabilities.

● Activities that contribute to businessIntellectual Property Division participates regularly inmeetings of divisions related to intellectual property,
such as Development Division and Technology
Division, to discuss invention-finding activities andapplication strategies to promote businesssuperiority. It also conducts intellectual property
activities linked with business activities.
In addition, to create effective patents at an earlystage, the division uses patent maps that digitize andvisualize patent information to understand the stateof applications and development directions in
specific fields and create patent strategies. The
division lists patents related to business regularly
and shares information with related departments toconsider matters such as patent applications and theuse of patents.

There are many situations in which knowledge ofintellectual property rights is required in corporate
activities, and we provide education as part ofcompliance education, as well as education for
Development Division and Technology Division toincrease their basic knowledge of intellectual
property and awareness of applications.
For Intellectual Property Division, we plan humanresource development programs by externalorganizations, and we are enabling humanresource development at each stage in order toenhance expertise in such areas as support for thecreation of intellectual property and the planning ofintellectual property strategies.
In addition, in order to encourage inventors to
produce inventions, we have enhanced our
employee invention incentive system, which
provides incentive payments to inventors inaccordance with their applications, registrations
and results for inventions, as an encouragement
for inventions worthy of future application.

Numbers of patent, utility model and design
applications, and rights held
(Cases)140
120

Applications
国内出願
in
Japan

114

Applications
海外出願
overseas

119

115

Held in
国内保有
Japan

116

100
80
60
40
20
0

91
68
21
7

2017

101

Held
海外保有
overseas

25

15

12

11

11

2018

2019

2020

Dialogue with shareholders andinvestors

The company’s corporate information is concentrated
in General Affairs Department, the department
responsible for the handling of information. General
Affairs Department judges the necessity of information
disclosure. When it does so, it judges theappropriateness of disclosure not only in accordancewith the Timely Disclosure Rules of the Tokyo Stock
Exchange, but also from the perspective of building
and maintaining relationships of trust with thestakeholders surrounding the company.

● Relationships with individual investors

1. Information on decisions and financial reports
The Board of Directors discusses important facts
about the company and its decisions arecommunicated promptly to General Affairs
Department (the department responsible for thehandling of information) via the Secretary’s Office,the secretariat of the Board of Directors. In addition,
information on financial reports is communicated toGeneral Affairs Department by Accounting
Department.

3. Strengthening of disclosure systems at subsidiaries
We are explaining the timely disclosure of corporate
information relating to subsidiaries again to eachsubsidiary in order to promote understanding of theTimely Disclosure Rules in regard to important
facts, and the company is also involved positively in
information collection.

General meetings of shareholders

113

The company holds an ordinary annual general
meeting of shareholders in June each year. We
believe that general meetings of shareholders are avaluable forum for dialogue with shareholders and aremaking efforts to invigorate general meetings ofshareholders and facilitate the exercise of voting
rights. Examples of our main initiatives are as follows.

882021 (Fiscal year)

We are making efforts to have the company known
among individual investors.
Twice a year, we send shareholder newsletters toshareholders to deepen their understanding of thecompany.

● Relationships with institutional investors
We hold financial results briefings twice a year for
institutional investors and securities analysts, giving
them overviews of results, and explaining business
reports and our future prospects. In addition, we also
hold individual interviews and teleconferences
throughout the year and make efforts to promote
understanding of the company among institutional
investors.

2. Information on the facts of occurrence
Each division sends information to General Affairs
Department.

123

77
10

Thinking on information disclosureand constructive dialogue

A financial results briefing● Information disclosure on the website
We have set up dedicated pages on the company
website for shareholders and investors that provide
the latest information such as information on
financial reports and press releases. The company
discloses materials concerning quarterly financial
reports, shareholder newsletters and othermaterials, and carries out activities aimed atpromoting understanding of the company.

 Early sending of the “Notice of Convocation of theGeneral Meeting of Shareholders”
 Setting of general meetings of shareholders
avoiding days when such meetings areconcentrated
 Exercise of voting rights by electromagnetic means Provision of an English version of the Notice ofConvocation (summary)-39-

Topre Group CSR Report 2022

Topre Group CSR Report 2022

-40-

ESG Data

ESG Data

ESG data collection

Amount of waste discharged [including
valuable resources] (Japan)

EnviroEnvironment
nment

(t)

(1,000 t-CO2)

Scope 1
Scope 2Japan
Japan
Overseas
Overseas
国内
海外
国内
海外

100

80.2
62.5

80

68.8
67.6
63.4
52.3
60.9
51.2
49.9
47.9
41.3
31.7
31.0
29.7
28.4

60
40

21.3
20.6
20.2
20.2
19.5
17.7
16.5
16.4
13.0
5.7
13.5
4.9
4.8
2.1
3.0
12.0
11.6
11.6
10.9
10.5

20
0

2017

2018

2019

2020

(Fiscal year)2021* CO2 emissions were revised due to improvements in calculation
accuracy.

Energy consumption (global)
(TJ)

Japan

1,000

760

800
600
400
200

Overseas

649
517

548

207

239

311

310

306

344

673
317

355

0
2017

2018

2019

2020

402

357
(Fiscal year)

2021

Scope 3 _ Categories 1–15
Total
1
Purchased goods andservices
2
Capital goods
3
Fuel- and energy-related
activities (not included inscope 1 or scope 2)
4
Upstream transportationand distribution
5
Waste generated
in operations
6
Business travel
7
Employee commuting(t)
80,00060,00053,414 53,065

51,484

893.8

59.8

41.4

5.2

5.2

60.5

29.9

20,000
0
2017

2018

2019

2020

(Fiscal year)

2021

32

32

2017

2018

35

29

27

20
10
0
2018

2019

2020

(Fiscal year)

2021

2019

(Fiscal year)

2020

2021

Human resources
1.2

1.1

0.4

0.4

4.3

4.1
*1

*2

*4

1,425.4

Number of employees (global)

Number of employees (non-consolidated)(People)(People)Number of employees overseas
Number of employees in Japan

8,000

5,546

6,000

3,856
4,000
2,000

*4

1,412.9

12.0

2,809 3,335 3,268

1,504 1,841
2,352 2,407 2,737 2,763 2,691
2018

2019

2020

FemaleQuasi employees, contract employees, etc.

1,450 1,484
88
83

1,535 1,597 1,563
100
102
94

1,000
500

1,367 1,396 1,441 1,497 1,461
211

205

192

166

175

0

(Fiscal year)

2021

2017

2018

2019

2020

(Fiscal year)

2021

11.9
*5

Excluded from calculation*6

Excluded from calculation

Average years of service (non-consolidated)

Average age (non-consolidated)(Year)

(Age)

Male

20

15.1
37.7

1,500

4,248

2017

Male

2,000

6,098 5,959

0

16.4

* Overseas surveys are scheduled for fiscal year 2022.

Topre Group CSR Report 202240
54,064 50,750
30

2017

*3
10
Excluded from calculation
Processing of sold products

15
Investment

47,544

57,7740Excluded from calculation

11
Use of sold products

50,641

20,000*1: Recorded under Scope 1 and 2*2, * 3: Reasonable calculation is not possible*4: Calculation only of internal products (products
designed internally)*5: There is no external leasing of assets*6: There is no franchising

40,000

-41-

829.7

60,000

国内製造拠点 bases in Japan
Manufacturing50

40,0009
Downstream transportation
and Distribution

14
Franchises

58,010 58,741

2,417.0

Excluded from calculation

13
Downstream leased assets

国内製造拠点 bases in Japan
Manufacturing

2,436.2

8
Upstream leased assets

12End-of-life treatment ofsold products

Water consumption (Japan)

Unit: 1,000 t-CO2
Fiscal year
Fiscal year
2020
2021

(t)

国内製造拠点Manufacturing bases in Japan

80,000CO2 emissions [Scope 3] (Japan)

CO2 emissions [Scope 1 + 2] (global)

Quantity of substances subject to PRTR
handled (Japan)

15

14.8

14.8
14.4

FemaleOverall

14.8

14.9

15.3

14.4

14.5

14.9

40
35

10

30

9.5
5

8.7

8.8

2018

2019

9.1

Male

FemaleOverall

37.9

37.8

38.0

38.3

37.6

37.5

37.7

38.0

33.0

33.2

33.8

34.3

2017

2018

2019

2020

38.6
35

9.6
25

0

20
2017

39

2020

(Fiscal year)

2021

Topre Group CSR Report 2022

(Fiscal year)

2021

-42-

ESG Data

ESG Data

ESG data collection
Number of employees taking childcare leaveand rate or return from childcare leave (nonconsolidated)

Human resources(People)Number of job leavers and job-leaving rate(non-consolidated)(People)Number of job leavers

Job-leaving rate

200
150
100

5.8

4.8

(People)

8.0

100

93

2.0

2019

Male

Female(%)

Female ratio

300

15

200

9.4

8.9

10

6.2
100

0

60

65

9
51

2017

4
61

2018

64

6
58

2019

7
72

2020

5

37 6
31 0
(Fiscal year)

1.98

39

38

2.1
1.4

0.0
2017

9
6

5

5

男性
Male

女性
Female

500

0

1

3

2017

2018

2019

2020

2018

2019

(Fiscal year)

2020

2021

400
300

50

(yen /
Training expenses per
1人当りの研修費用 person)
employee

Number of users of rehiring system andrehiring system usage rate (non-consolidated)40

14,08415,000Retirees
Number of users of the system
Rate of use of the system(People)

77.8

40
30

58.3
24
14

69.6
23
16

(%)
100

79.3

90.9

29

27
21

23

60

20
0

2018

2019

200

0.60
167 1

175

2

1.11

(Fiscal year)

2020

2021

2.0

80

179

3

180

2

1.2

20

11,792
9,793

20.9

14.2

194

0.8

2

54.4
44.7

166

173
2018

176
2019

178
2020

192

0.0

(Fiscal year)

2021

18.1

9,831
15.7

11,324

24

53.6

47.4

10,000

17.7
5,000

10
0

0
0

0

0

0

0

2017

Topre Group CSR Report 2022

2021

(Fiscal year)

14

2018

2019

2020

2021

(Year)

Social contribution activities (Japan)
Social contribution activity expenses

6,000

4,865

4,000

1,655 1,758

1,546

2,000

2,555

0
2018

2019

(Fiscal year)

2020

2021

Intellectual property activities

Total annual actual work hours per regular employee

2,321

2,265 2,224
2,098 2,098

2017

2018

2019

2020

(Fiscal year)

2021

Labor union membership as a percentage of all employees

Numbers of patent, utility model and design
applications, and rights held
(Cases)
140
120

91.8

91.6

2017

2018

90.4
2019

90.4
2020

0

2021 (Fiscal year)

114

119

80

20

89.8

Applications
海外出願
overseas

Applications
国内出願
in
Japan

115

Held in
国内保有
Japan

116

100

60

80
2020

19

Social contribution activities(Hours / year)

90

2019

21

0

40

2018

22

21

10

(Fiscal year)

100

20

29

30

Total annual hours worked per regular
employee (non-consolidated)

(%)

40

2017

30

(1,000 yen)Labor union membership as a percentage of
all employees (non-consolidated)

61.3
60

20

20,0001,500

Rate of taking of paid leave
有給取得率

0.4

2017

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(%)

1.03

100
0

(%)

26

2017

0
2017

30

40

11
10

10

80

30

2021 (Fiscal year)

Training
研修費用
expenses

1.6

1.14

0

40

Training expenses (non-consolidated)

Rate of taking of paid leave (non-consolidated)

1.68

25

8

0

Number of occupational accidents
Number of commuting accidents* The value for each year is the number of occurrencesfrom January 1 to December 31.

2,000

Ratio
of female
女性管理職比率mangers

7

8
6

2,500

(People)50(1 million
yen)

2021

Number of managers and ratio of female
managers (non-consolidated)

7

5

0

75

* These figures are in accordance with the Ministry of Health, Labour andWelfare’s “Employment rate system for persons with disabilities.”

20

79

37

2.05

0

50

16.2

15.0

2.08

10

Number of occupational accidents andcommuting accidents (Japan)(Cases)

100
15

100

(%)
100

0.7

2021

Number of new graduate employees and female
ratio (non-consolidated)

1.75
34

28

(Fiscal year)

2020

100

3.5

20

0.0
2018

1.72

40

0

100

Rate of return

15

2.8

4.0

50

(People)(%)

Employment ratio

80
60

73

2017

Numberof employees
障がい者雇用者数
with disabilities

100

Female

10
6.0

114

98

92

(%)

20

7.3

6.6

6.3

Number of employees with disabilities andemployment ratio (non-consolidated)

Male

Safety and health

91
68
21
7

2017

Topre Group CSR Report 2022

101

Held
海外保有
overseas

123
113

77
10

25

15

12

11

11

2018

2019

2020

8
8

2021

(Fiscal year)-44-Third party opinion

Response to the third-party opinion~ CSR activities of Topre Group ~E-Square Inc.
President andRepresentative Director
Hiro Motoki

In the first CSR Report of the Topre Group,
CSR activities across the entire group havebeen reported in the context of ESG(Environmental, Social and Governance). As
historical background, the trend for institutional
investors to emphasize ESG is accelerating,and expectations of and requests for initiatives
that pursue the sustainability of society andcompanies are increasing. As President
Yamamoto said in his Message from the
President, a sense of speed across the groupas a whole will be essential for sustainable,
global management.
The basic philosophy of “Aiming to be acompany that contributes to society andprospers permanently” represents the essenceof CSR management. That is because from a
medium to long-term perspective, it means
contributing to all stakeholders in order torealize the sustainability of society, andmanagement that pursues the simultaneous
realization of permanent prosperity for thecompany.
I think that the disclosure of the process ofidentification of important CSR issues(materialities) and the results of selection is
excellent. From an ESG perspective, you haveset medium-term targets and long-term targets
for 2030, while arranging your materialities,
main initiatives and their related SDGs.
In addition, your stance of focusing on initiatives
concerning climate change in particular among
other materialities has been made clear. This
report has presented a long-term roadmap of
the measures you intend to adopt while settinginterim targets for 2030 and 2040 towards therealization of carbon neutrality in 2050.

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The targets for CO2 reductions are for scopes 1
and 2, but the ESG data collection also discloses
the aggregate results for scope 3. As this is anarea where there are high expectations ofcompanies, we expect that this will be developedin conjunction with business opportunities aswell as risks.
As for future improvements, one of the mostemphasized parts of a CSR Report is the
Message from the President. The enthusiasm of
President Yamamoto, who was appointed
President this year, can be felt in the content of
his message, but I hope that he will talk more at
length about his ideas from next fiscal year. Thisis also related to the identification ofmaterialities, but what kind of environmental andsocial issues may the company’s value chain
face in the short, medium, and long term, andwhat kinds of impacts may those external
environments have on the company? By talking
from a management perspective about his
understanding of how to connect to theimprovement of corporate value by taking
measures to address issues, he will send amessage to group employees and present a
sense of the direction of corporate management
to stakeholders, including business partners andinvestors.
Also, when viewed as a communication medium,
the CSR Report has not been linked to thewebsite yet. Since the matters identified asmaterialities are at the core of implementation of
CSR management, it would be good if the CSR
Report was structured around the identified
materialities and they were explained carefully,
including your understanding of the backgroundto them. It would also be good if the detailed
ESG information required by investors could belinked, such as disclosing it on your website.
I think that issuing CSR Reports will create a
new dialogue with stakeholders. Based on
feedback from outside the company, I havestrong expectations that CSR activities will betransformed as something integrated withbusiness strategy.

Topre Group CSR Report 2022

Thank you very much for your valuable opinions, Mr. Motoki. I recognized once againthat our responses to the environmental and social issues you pointed out will lead toincreased corporate value. I think that the approaches to CSR activities are slightly
different between the company’s Automotive Equipment Division and Products
Division, which differ greatly in the products they handle, but we will work together on
the direction we should advance in as the Topre Group. In addition, with regard to
initiatives for climate change, which you raised as a good point, we will further
improve our shared awareness of the reduction of CO2 emissions and move forward
so that we can achieve our targets.
From now on, we will continue to promote CSR initiatives and enhance information
disclosure. We will also consider a linkage between the report and the website, as
you pointed out, to obtain the understanding of stakeholders.

Officer in charge of
CSR, Topre Group
Yoshinori Tsuyuki

Editorial policy
The Topre Group published this CSR Report aimed at having all stakeholders understand its initiatives
for sustainability and ESG. There are still some gaps in the content of the report, but we will accelerate
activities from now on.

Organizations subject to the reportJapan: 6 companies, Overseas: 7 companies(Same as the organizations subject to the reduction of CO2
emissions: see p.15)

Financial information details

Period subject to the report
Fiscal year 2021 (April 1, 2021 to March 31, 2022)(Some information from April 2021 on is also included)

https://www.topre.co.jp/en/ir/
Please visit the Topre website.

Time of issue
June 2022

Editorial reference
GRI “Sustainability Reporting Standard 2016”
Ministry of the Environment “Environmental Reporting Guidelines” (2018edition)Inquiries
CSR Promotion Office and Climate Change Countermeasures Department,
Topre Corporation
Asahi Building, 3-12-2 Nihonbashi, Chuo-ku, Tokyo 103-0027
TEL: 03-3271-0711 FAX: 03-3271-7045

Topre Group CSR Report 2022

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