SMICCSR REPORT
2019

Senju Metal Industry GroupCSR Report
Senju Metal Industry Co., Ltd.
23 Senjuhashido-cho, Adachi-ku, Tokyo 120-8555
TEL: (+81) 03-3888-5151 (Reception) FAX: (+81) 03-3870-3032

www.senju.com©2019 Senju Metal Industry Co., Ltd. All rights reserved.

SMIC Group CSR Information

https://www.senju.com/en/csr/
Email Address

web@senju.com

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CONTENTS
Editorial Policy and Table of Contents
Message from the President andManagement Philosophy
SMIC Group’s Vision and CSR

1
3
5

Feature: Safety
P a rt 1

Business Activities and Safety

Thoroughly Integrating Safety
Safety in Manufacturing Facilities
Safety in Indirect Departments
Safety in Society
P a rt 279912Interview with Directors

Passing the Baton to the Next Generation

13

Society
Relationships with Customers
Relationships with Suppliers
Relationships with Local Communities

LOOK AT THE WORLD

Relationships with Employees

17
18
19
21

Environment
Environmental Philosophy and Policy
Eco-Factories
Environmental Activities

22
23
24

Management
Governance25

Corporate Profile

26

Editorial Policy
SMIC Group strives to report on key challenges and topics of high social importance in order to determine materiality.
We declare that this report was made in compliance with the requirements of the GRI standards,
and reports the results of our efforts to solve social problems through our business.
Disclaimer
Period Covered

April 1, 2018 - March 31, 2019
(Includes some information from April 2019 onwards)

This report contains descriptions of plans and strategies pertaining to the future activities ofReport Scope

26 group companies (includes non-consolidated subsidiaries and associated companies).
Note that SMIC's environmental initiatives are listed separately.

descriptions include estimates and forecasts formed with information gathered and analyzed

Key Changes

No changes in the number of consolidated subsidiaries.

companies assume no responsibility whatsoever for damages or losses occurring either directly

Membership

RBA, JWES, JIEP, JEITA, JAPIA, TEA, JCCI

or indirectly from the use of the information or content included in this report. Furthermore, thePublication History

Current Issue: October 2019 (Previous Issue: November 2018)

original text of this report was written in the Japanese language and has been translated into

Next Issue

October, 2020

Reference Guidelines

GRI Standards, Environmental Reporting Guidelines, ISO26000*The GRI standards comparison table will be posted on our CSR website.

1

SMIC CSR REPORT 2019

SMIC, as well as predictions and forecasts related to its business performance. Suchbased on what is available at the time of creation. Please be aware that SMIC and its related

English and Chinese languages for reference. If there are any discrepancies between theJapanese version and the English or Chinese versions, the Japanese version shall supersede theother versions. Please be aware that SMIC assumes no responsibility whatsoever for any and all
damages occurring from misunderstandings caused by translated versions of this report.

SMIC CSR REPORT 20192

SMIC CSR REPORT 2019

Message from the President

SafetyManagement Philosophy
Perform our mission as a socially valued
institution via providing universally beneficial products

A Company Built on Safety and Security“Company” is a place where all employees share core values and are able to use the lines of communication
as a “dojo” for the mastery of oneself. It is our strongest desire that company growth is directly interwoven
with employee happiness – materially and spiritually. In the face of modern society, as the foundation of acompany’s existence, we are expected to continue to provide universally beneficial products year after year.
Our management philosophy is to harmonize societal goals with employee desires, thereby enabling our
mission to be a valued institution sharing peace, happiness and progress to all of society.
Three key pillars are necessary under this philosophy in order to advance company development and ensure
the success of our mission: Ability, Integrity and a Fighting Spirit. These pillars are the three sacred treasuresthat form the cornerstones of every aspect of life.

President Ryoichi Suzuki

When these pillars are indomitable inside our institution, a bright, peaceful and vigorous workplace will
naturally emerge. We are confident that with this workplace as a driving force we will overcome any
challenges and the company will continue to grow as long as this pioneering spirit is encouraged each andevery single day. Together, let’s take this philosophy to heart and embrace it as our belief, and build a bridgeof peace and friendship across the entire corporate landscape while progressing into joyful, healthy lives.
June, 1960

The 81st anniversary of our founding has been a year forconsidering how we will build SMIC Group’s future over the
next 10 years, 20 years, and beyond. In terms of trends inFulfilling Our Corporate Social
Responsibilities, Achieving the SDGs

The late Mr. Senju Sato, Honorary Chairma
As President:
As Chairman:
As Honorary Chairman:

June, 1960 - June, 1978
July, 1978 - May, 2008
June, 2008 - October, 2008

corporate social responsibility, sourcing of conflict-free

In 2015, the UN General Assembly adopted the Sustainable

minerals as defined by the U.S. Dodd-Frank Act enforced

Development Goals (SDGs). The SDGs consist of 17 goals

in 2013 has changed to become “responsible mineraldivided into 169 targets relating to the environment, society,sourcing,” expanding the scope of target minerals andand the economy. They are a fundamental set of goals aimed at

reduce long working hours and prevent harassment regarding

target countries. For labor environments it will be crucial for

creating a society and “leaving no one behind.

personnel management and industrial relations; we are

us to make improvements, not only within our own”Our company is engaged in CSR and corporate activities tobuilding our company to be a place where all employees cancompanies, but also throughout the entire supply chain.

become an outstanding company that helps realize awork comfortably and excel through our initiatives that ensure

Global concerns over quality, sourcing, and labor

sustainable environment, society, and economy, based on ourequal conditions and equal pay for equal work, and our

the UN General Assembly in September 2015. Companies are expected toenvironments has been recently on the rise, and ourManagement Philosophy.

support for balancing childcare and elderly care with work.

play an active role in achieving the 17 SDGs and their 169 targets.

customers demand that we ensure safety. As companies

We listened to our customer's demands, and are striving to

As part of our activities to realize a sustainable society,that provide universally beneficial products, we hold theprovide products and services that are both high in quality andenvironmental conservation and classroom lessons are two

safety and security of all our stakeholders to be of top

socially and environmentally friendly. We will continue working

ways in which we are deepening our engagement withpriority. Therefore, we have decided “safety” is the theme

to build a system that allows our customers to use our products

members of local communities surrounding our productionof this year's CSR Report, with contents that enable us towith peace of mind through safe and secure conflict-freefacilities both in Japan and abroad.

continue being a safe and secure company for our

mineral sourcing, and augmenting our production facilities both

Last year, SMIC was selected by the Ministry of Economy,

customers, employees, and society.

in Japan and abroad to reinforce our production system.

Trade and Industry as “The Driving Company for the Regional

Furthermore, to realize Society 5.0, a new society for the future,

Future.” With humility we accept this role as a company to

we are promoting the automation and IoT integration

drive the region’s future. We will devote ourselves day in andthroughout our manufacturing equipment, lightening the

day out to be a company that is a paragon not only in theworkload on employees, and working to improve our workplace

economy, but also for the environment and society as well.

What are the SDGs?
The Sustainable Development Goals (SDGs) are common goals for all of
humanity to achieve by the year 2030, set forth in “Transforming our world:the 2030 Agenda for Sustainable Development”, which was adopted byenvironments. In conjunction, while we boost our efforts to3

SMIC CSR REPORT 2019

SMIC CSR REPORT 2019

4

SMIC Group’s Vision and CSR
SMIC Group is engaged in CSR and corporate activities aimed at being an outstanding company

Key challenges for the SMIC Group andstakeholders to address together

that helps to realize a sustainable environment, society, and economy, based on ourManagement Philosophy, by maintaining sincere relationships with our customers, employees,
suppliers, local communities, the global environment, and other stakeholders.

The Global Reporting Initiative (GRI), an international guideline for

Local
Communities

sustainability reports, amended its guidelines in May 2013 to G4
and in October 2016 to GRI Standards with the goal of changing■Prevent accidents/disasters
at business sites andprovide disaster support insurrounding areas

Progression of
Our Entire Society■Respect local cultures/customs
and contribute to local
communities

their approach for information disclosure from an exhaustive
one to one focused on key challenges (materiality). In order todisclose the integrity of our management through people

Growth of the Company and
Employees
Contributing tocustomer satisfaction
and a better society

and how we communicate and develop globally with our
stakeholders, SMIC is identifying the materiality of the fiveaspects stipulated in the code of conduct of the RBA(Responsible Business Alliance: renamed in October
2017 from EICC) and of contents reported in the monthly
CSR meetings, based on the following four-step flow
recommended by GRI.

Customers■Provide safe, secure, andstable products and services

Working together
with all stakeholders
to realize a better society■Properly provide eco-friendly
products/services andinformation

1

step

2

step

GlobalEnvironment
Suppliers■Prevent global warming andreduce waste production■Fairly select and conducttransactions with suppliers■Discontinue use of conflictminerals and control
chemical emissions■Maintain corporate value
and support socially
responsible investment

Employees

Management
Philosophy

5

SMIC CSR REPORT 2019

■Fairly evaluate, treat, train,
and fulfill employee
allocation■Consider occupationalsafety and both mental andphysical health

3

step

4

step

Identification of key
issues and events●

GRI aspects and important
RBA self-audit items●

Identification of the scope of impact

Prioritization●

Severity assessment for
stakeholders and the company●

Qualitative and quantitative
assessment in the monthly CSR meeting

Validation●

Assessment of the scope,
impact and period of GRI items●

Approval and disclosure
by the management team

Review●

Distribution and disclosure of
documents in hard and soft copy●

Analysis and summary of opinions
in the monthly CSR meeting for
utilizing in future meetings
SMIC CSR REPORT 20196

Feature P art 1

Business Activities and Safety

Thoroughly Integrating Safety

SAFETY

Global concerns over quality, sourcing, and labor environments have been recently on the rise, and ourcustomers demand that we ensure safety. As companies that provide universally beneficial products, wehold the safety and security of all our stakeholders to be of top priority. Therefore, we are working tothoroughly ensure safety in both our manufacturing facilities and indirect departments.

The following is an introduction of how we ensure safety in our manufacturing facilities and indirect
departments, and our related companies that provide safety to society.

Safety in Manufacturing Facilities

Materials
Management

Sourcing■ Sourcing●●

CSR sourcing●

Conflict-free

Relationships with Suppliers

●

P.18

SolderManufacturing

Storage /Reception

Smelting■ Warehouses■ Furnaces

3D automated warehouses●

Autonomous robot carts

Automated Equipment

P.9

5S Activities
5S Activities

P.9

Casting●

Automation

P.9■ Quality
Management●

Weight management /Factor analysis

IoT Analysis Systems

Shipment

Customers

Analytical Inspection

Product Management■ Bar solder,billet, ingot

Robots forautomation

Automated Equipment

Analysis

P.9■ Product Safety●

Ensuring safety byanalysisAnalysis (Product Safety)■ Packing●

P.10

Automatic weighing andpacking robots

Automated Equipment

P.9

BCP

■ Safety of Employees

Strengthening backup
systems in cooperation withdomestic and overseas bases

Focus
Sprinkler equipment installed in facilities incase of disaster P.9

BCP(Business Continuity Plans) P.10

Focus
Conducting evacuation drills,

firefighting drills, and first aid training

Safety in Indirect Departments
Quality Activities

7

SMIC CSR REPORT 2019

Human Resources
Management

Safety in Indirect Departments

P.10

P.9-11Intellectual Property

Information Security

Business Audits

SMIC CSR REPORT 20198

Feature P a r t 1

Business Activities and Safety

Safety in Manufacturing Facilities

Automated Equipment

Analysis (Product Safety)

Previously, manufacturing, packing, and logistics for our products
required significant human labor, which placed a great physical andmental burden on our employees. In order to reduce this burden,
improve safety, and improve the quality and productivity of the
products we manufacture, our Manufacturing Department isintroducing equipment for automation and robotization. Currently, ourmain facility - the Tochigi Segment - is the center of this effort, but weare actively introducing equipment for automation and robotizationequipment at each of our
production bases in Japanand overseas. We are also
developing and progressing
toward the next generationof the SMIC Group.
In addition, our Logistics

Analytical inspections of our products are conducted at the Industrial Analysis Service
Tochigi Laboratory, a third-party organization and an affiliated company of SMIC.
Industrial Analysis Service is an associated company established when the Chemical
Analysis Department of SMIC was separated and made independent in 1972. It has
technological capabilities backed by nearly 70 years of experience and achievements
accumulated starting before that separation, as well as state-of-the-art analyticalequipment, which it uses to conduct ultra-high precision and detail analytic inspection.
We have established a system that can produce analysis results in as little as 6 hours
after receiving a request for product analysis and inspection.

BCP (Business Continuity Plans)
Solder pallet automatic manufacturing robot (Tochigi Segment Manufacturing Dpartment)
Solder Powder
Material

department has introduced a 3D automatedwarehouse that can automatically store
and retrieve solder materials on high-riseracks. They have also introduced autonomous
robot carts that transport products without
human assistance in the warehouse, reducing
the burden on employees and making
work more efficient.

3D automated warehouse(Tochigi Segment Logistics Department)

Autonomous robot carts(Headquarters Logistics Department)◯◯◯◯◯◯◯

Focus

Conducting evacuation drills,
firefighting drills, and first aid training
Automatic weighing and packing robots(Senju Giken)

Solder powder manufacturing facility in Chicago, USA

SMIC Group has established a risk management system that evaluates,
analyzes, and takes measures against various risks in preparation for
emergencies such as natural disasters, earthquakes, fires, explosions, andoutbreaks of infectious disease, in order to minimize damage and improveability to implement business continuity. The Group has also established apromotion system and action plan for early recovery of important
operations.
Also, in the event there are production sites that have difficulty withproduction due to an emergency such as a natural disaster, we arestrengthening our backup system so that production can continue incooperation with other production sites in Japan and overseas. In addition
to Senju Giken in Miyazaki, which manufactures solder balls and flux, andSenju Electronic in Iwate, which manufactures solder balls, in fiscal year
2019, we established a preform manufacturing facility in Nishiwaki City,
Hyogo Prefecture and a manufacturing facility for solder powder used insolder paste in Chicago, USA.

IoT Analysis Systems
We have installed an IoT analysis system in theautomatic soldering and packing equipment at the
Tochigi Segment, which collects and aggregates
information such as the weight of each solder bar
manufactured, as well as the temperature aroundequipment and the temperature inside solder baths,
and keeps the weight of manufactured products
constant by linking data with analysis and automatedequipment. In the future, we plan to introduce IoT
analysis systems in other automated facilities in order
to conduct advanced product management.

SMIC Group conducts evacuation drills, firefighting drills, andlifesaving classes (AED classes) every year, following theguidance of fire departments and security companies, in order tosave employees' lives in the event of disasters such as
earthquakes and fires. Last year, one of our employees collapsed
in a state of cardiopulmonary arrest at the Tochigi Segment, butthat employee's precious
life was saved as a resultof swift cardiopulmonary
resuscitation, AED, pulse
checks, and notification
through collaboration
within the company. SMIC
will continue to conduct
training and lectures toteach lifesaving skills.
We received a letter of appreciation from theMoka Fire Department for the achievementof saving a life at the Tochigi Segment.

Safety in Indirect Departments

5S Activities
5S is a grouping of workplace environment maintenance and improvement activities, which create a comfortable
work environment, improve work efficiency, and contribute to improving quality, productivity, and safety. In the SMIC
Group, 5S Promotion Committees organized at each worksite conduct 5S patrols at workplaces every month toidentify issues and make improvements.
These 5S Promotion Committees promote 5S improvementsin their own departments by actually finding and learning
the improvements and issues in each department.
Furthermore, 5S Promotion Committees aim to raise thelevel of the company overall by holding discussions
aimed at making improvements.
We will continue to promote 5S activities throughout the
SMIC Group in order to improve our workplaceenvironments.

9

SMIC CSR REPORT 2019

Focus
Sprinkler equipment
installed in factories
in case of disaster

SMIC Group installs sprinklers in manufacturing
facilities, offices, and research buildings in
preparation for fires caused by disasters.

Quality Activities
SMIC provides material products to customers in various fields, including
electronic devices such as smartphones and personal computers, as well as
automobiles and home appliances.
We consider quality to be one of the pillars necessary to meet customer
demands, and promotes quality improvement activities in the factory every
single day.
We also conduct product analysis and inspections at our Industrial Analysis
Service, which is a third-party organization, and determine whether thequality is acceptable or not to prevent fraud and counterfeiting in
inspections.
In 2018, we shifted our certification from ISO/TS16949, the international
quality management system standard for the automobile industry, to
IATF16949. We will continue our efforts to raise quality and make continuous
improvements, so that we can deliver products that satisfy our customers.

SMIC CSR REPORT 201910

Feature P a rt 1

Business Activities and Safety

Safety in Society

Safety in Indirect Departments

Human Resources Management
Workplace harassment and long working hours have become serious social issues.
SMIC Group believes that it must take no actions which diminish the mental healthof employees, nor deprive them of their willingness to work or willingness to live,
and considers preventing such actions to be an important issue in labor
management. Therefore, the Group promotes various measures and improvements
to prevent such actions, which include the following. Specifically, we prevent
harassment through internal reporting systems that include "smile emails" andself-reporting systems, and also control and direct long working hours by tracking
working hours and workplace presence hours using the attendance management
system.
We will continue to create work environments where employees can work withpeace of mind and full of vigor.

Intellectual Property
To put it simply, intellectual property is valuable information . Technology,
knowledge, and know-how resulting from achievements in R&D and improvement
activities at our manufacturing sites are in fact valuable information.
Our Intellectual Property Department provides support and assistance for acquiring
rights to valuable information (for example, obtaining patents) and for concealingthat information (for example, managing know-how as a company secret).
SMIC Group makes efforts to protect its products and prevent infringement on therights of third parties in order for customers to use our products with peace ofmind. We also aim to help with business activities for sustainable growth, as well as
contribute to the creation of value useful to society, by effectively using ourintellectual property system.

Senju Sprinklers

Corporate Profile

Safeguarding Society by
Valuing Human Lives andProperty

Head Manufacturing Line

Head Production Process Model D

Company Name

Senju Sprinkler Co., Ltd.

Headquarters
Address

23 Senjuhashido-cho, Adachi-ku, Tokyo
120-8555

TEL

03（3870）5011

FAX

03（3881）3199

President

Setsuo Tanaka

Established

April 8, 1974

Capital

JPY100,000,000

Employees

192 (As of January 1, 2019)

Business
Portfolio

Manufacture and sale of fire sprinkler
head alarm valves and simultaneous
release valves
Manufacture and sale of fusible stoppers
for high-pressure gas containers

Since its success in developing the first domestically-manufactured
and officially-authorized fire sprinkler heads in 1963, Senju
Sprinkler has provided products the ensure the safety andsecurity of people's lives, including sprinkler heads, related
valve products and safety stoppers, of which it boasts the top
share in Japan.
By using a special solder with a low melting point in our firesprinkler heads, the company has realized an accurate
temperature sensing mechanism that takes advantage of thecharacteristics of the metal, thereby contributing to high quality
and reliability.
Senju Sprinkler continue to deliver the finest products forprotecting people's lives and property, through the synergistic
effects of using the SMIC Group.

Information Security
In addition to BCP/DR* measures, SMIC Group is further enhancing the operation of its
information security management in response to the damage caused by cyberattacks
that have occurred in recent years.
Currently, it is said that even with enhanced defense measures against cyberattacks,
prevention will not reach 100%. Therefore, it is incredibly important to formulate abasic action plan so that when damage does occur, it can be contained and restored
quickly.
We consider it to be very important for us to educate employees on rules and threats
and update them from time to time moving forward.

Industrial Analysis Service*DR: Disaster Recovery

Corporate Profile
Company Name

Industrial Analysis Service Ltd.

Headquarters
Address

23 Senjuhashido-cho, Adachi-ku, Tokyo
120-8555

TEL

03（3881）0541

FAX

03（3881）0547

President

Yuji Kawamata

EstablishedFebruary 8, 1972

Capital

JPY20,000,000

Employees

104 (As of January 1, 2019)

Business
Portfolio

Material testing and analysis
Characteristic tests of soldering flux
Environment-relatedWorker dispatch businessBusiness Audits
SMIC Group conducts internal audits (business audits) for the entire group, working
to enhance corporate governance in order to do risk and management and prevent
scandals.
With the purpose of maintaining sound corporate compliance, our Business Audit
Department conducts "security audits" based on the Foreign Exchange and Foreign
Trade Act, "CSR audits" based on the RBA Code of Conduct, and "information
security audits" concerning the handling of confidential information inside andoutside the company. These audits are conducted at all of our bases both in Japanand abroad (176 locations), with 293 items requiring correction detected in fiscal year
2018. These corrections were made promptly in each department, contributing tocontinuous improvement of our management system.

11

SMIC CSR REPORT 2019

Supporting High Quality and Reliability,
Contributing to the Conservation of the
Global Environment
Industrial Analysis Service originated as the Chemical Analysis Department of SMIC, but
was established as its own company in February 1972 following the separation of ournonferrous metal analysis business. It promptly provides accurate analysis data on various
materials as well as substances that are problematic to the environment. In particular, it
provides analysis data for four different phthalate esters that have been added to the
RoHS Directive (introduced in July 2019 and banned from the market in the EU) as

substances that may cause adverse effects to the human body, such as disrupting as
disrupting the endocrine system and causing reproductive toxicity. It also performs
analysis of PFOA, which has been added to the list of REACH restricted substances as ahardly decomposable organic fluorine compound that adversely affects animals and thehuman body, and content of which is required to be less than the threshold of 25 ppb*,
leading the company to receive many more analysis requests from customers.
In the future, the company will continue to contribute by expanding its analysis areas(which currently include solder materials, RoHS/REACH, material analysis, andenvironmental analysis) in order to contribute to the safety of society and the preservationand protection of the global environment.
*ppb: Parts Per Billion

SMIC CSR REPORT 201912

Fe a ture Part 2Interview with Directors

Passing the Baton to the Next Generation

Safety is Everything

Hasegawa

Performing our mission as asocially valued institution based on
Management Philosophy

Representative Director Tomohide Hasegawa and Director Tetsuya Okuno, who assumed office in December 2018,
spoke about "safety," the main theme of this year's CSR report, and discuss how they want to pass the baton to
the next generation for the next 100 years of the company.
Interviewer

Hasegawa

Representative Director

Tomohide Hasegawa

Director

Tetsuya Okuno

Interviewer
Okuno

Representative Director

Tomohide Hasegawa
Joined the company in 1982. After
serving as General Manager of the
Osaka Sales Office and CEO of Senju
Metal (Hong Kong) Co., Ltd., heassumed the post of Representative
Director in 2018. His hobbies include
reading and motto is "I shall live this life,
for no other life is more worth living than
this one." (Saneatsu Mushanokoji).

13

SMIC CSR REPORT 2019

Director

Tetsuya Okuno
Joined the company in 1982. After
serving as President of Senju Comtek
Corp. and Executive Officer of theInternational Business Department,
he assumed the post of General
Manager of the Tochigi segment andDirector in 2018. His hobbies include
golf, and mottoes are "Be humble,
honest, and calm" and "Passion to
Win".

Interviewer

Since you have been newly appointed as
Representative Director and Director respectively, please tell us your thoughts andideas as you take over and carry on theManagement Philosophy created by thelate Honorary Chairman Senju Sato.
Our management philosophy was first madeabout 60 years ago, and it has been integrated into the very foundation of SMIC eversince. Our company has developed in linewith this Management Philosophy, so I canreally feel the great legacy of Mr. Sato. WhenI joined the company, we were not yet active
globally, but because we sincerely fulfilled
the roles we were given without ever giving
up, we eventually became able to supply theworld with beneficial products, and we can
now compete with some of the best companies in the world.
I want our employees to keep this Management Philosophy in mind as we work towards
100 years in business.
And your thoughts Mr Okuno?
Last year, I became the director of the company's main manufacturing facility, the Tochigi segment, and I am now responsible foroverseeing the entire manufacturing department. That reminded me that the foundationof our company is manufacturing. Our Management Philosophy of "Providing beneficial
products to the world" means that we willcontinue to make things beneficial to theworld in the era we live in. While the truly
great things we have cultivated over the long
history of the SMIC Group will continue to bepassed down, I think there are many otherthings that we must change as our times
and environment change.
The government is advocating "Society
5.0," a society that utilizes technologies
such as AI and IoT. How do you intend todevelop SMIC as we approach our 100th
anniversary?

Okuno

I think that objects solder is used for havechanged significantly. At the time when we
first joined the company, solder was used inmany household appliances such as TVs, butsince then it has spread to the semiconductor
industry, which includes personal computersand smartphones. In the future, EV (Electric
Vehicle) and AI/IoT related industries will form
the heart of the market.
When products that were not electrically driven before are digitized and a CPU (Central
Processing Unit) is installed, we can enter a
new industry. This will change the standards
for development and manufacturing, including
the conventional industry rules. Our company
will not change in the sense that we will continue manufacturing alloys including solder, but I
think we have to learn a lot in order to grasp
the essence of our customer's demands. Our
Sales Department and R&D Department needto actively acquire information, so we provide
opportunities to study in-house.
Some customers have changed their own industry. For example, companies that did not
make cars before now make cars. Even ourfactories can feel that our customer base has
expanded and the usage and demand for oursolder products are changing. New technologies are emerging from various fields, so it
is necessary for us to develop products that
support them.
AI, IoT, robotization, and other aspects of Society 5.0 all apply directly to our factories. Our factories are also taking the initiative to learn newtechnologies such as AI, IoT, and robots, andhave started to incorporate them on the manufacturing floor. I believe it is important for us
to introduce these things in the industry aheadof the competition so that we can increase thevalue added on the manufacturing floor.

Improving quality and providing
safety to customers.
Interviewer

The main theme of this year's CSR report is"Safety." Please tell us your thoughts andinitiatives regarding quality and safety.

SMIC CSR REPORT 201914

F eat u re Part 2

We will change what must be changed
adapting to shifts in our era andenvironment

Interview with Directors

various metals, so it cannot be recycled as it
is. TAK-G has established technology that can
produce tin material with the same or higher
purity than tin purchased from tin smelters,
and our production has increased accordingly.

Interviewer

Hasegawa
Okuno

Hasegawa

OkunoInterviewer

We established the Industrial Analysis Service
47 years ago. Since then, we have worked tosupply high-quality and safe products to customers by entrusting our internal inspection
process to the Industrial Analysis Service as athird party organization.
In the media, there is growing concern about
the reliability of quality inspections, but I feelthat we can give our customers peace of mind
by not only performing in-house checks, butalso having third parties perform inspections.
In order to improve quality, it is important that
we consistently perform 5S (sort, set in order,
shine, standardize, and sustain). Working on
5S helps us to toughen our resolve, reduce
accidents in the workplace, and improve thequality of our products by keeping out contaminants. We started 5S activities 20 years
ago, and have implemented them more thoroughly in the past 10 years, so I think 5S hasreally taken root in our company.
One of our new initiatives is robotization. In
the past, we had so-called "3D jobs" (difficult,dirty, and dangerous jobs) and poor workplace environments where people handled
heavy or hot objects. However, by thoroughly
implementing 5S and introducing robots andautomated equipment, we have been able tobuild factories that are friendly to our workers as well. The President and the rest of ourmanagement team are actively investing in robotization and automation, so our factories areworking to make sure that investment does
not go to waste.
What about ensuring stable supply to
our customers?

Hasegawa

The 2011 Tohoku Earthquake and Tsunami wasa major motivating factor for ensuring stable supply. It awakened the whole world to the importance of disaster recovery as well as BCP (business continuity plans). We conduct thorough risk
management, source with multiple purchases
or at multiple factories, and always confirm thesoundness of our suppliers.
This year, we established a new preform manufacturing facility in the Kansai Region of Japanand a new powder manufacturing facility in theUSA. Now we constantly review our supply system, including our supply chain, in order to meetthe needs of customers around the world.

Interviewer

Okuno

Hasegawa

Okuno

Many natural minerals are used for solder materials.
Please tell us what initiatives you have undertaken.
I'll use tin as an example. Our company is the
only solder manufacturer that is a member of the
RBA (Responsible Business Alliance), and wehave joined the "conflict-free" declaration, whichis to say we do not use materials sourced fromconflict zones. Our sourcing personnel go to tin
smelters around the world where we source ourmaterials to conduct regular inspections.
As part of our duty to make responsible use of limited resources, we have collaborated with TAK-G
to make effective use of resources starting roughly
40 years ago. Recently, as the manufacturing industry has become more conscious of the environment, demand has increased for solder products using recycled materials. I feel that our efforts
to establish internal and external systems that cancollect and recycle solder sold by us are meetingthe needs of customers and society.
The solder we collect contains impurities and"Society 5.0,"
a new type ofsocietySociety 5.0 is the next generation following hunter-gatherer society (Society1.0), agricultural society (2.0), industrial society (3.0), and digital society (4.0).
The Japanese Cabinet Office advocates and Japan aims to realize this futuresociety, which balances economic development with social issues such as
regional disparities in medical and nursing care or labor shortages, by using
technology such as AI and IoT to analyze, share, and judge various types of
information collected from around the world (big data).

Society 1.0
Hunting & Gathering
Society 2.0
Agricultural

Society 4.0
DigitalSociety 3.0
Industrial

Made by modifying the Cabinet Office Society 5.0 (https://www8.cao.go.jp/cstp/society5_0/index.html)

SMIC CSR REPORT 2019

Interviewer

Hasegawa

Supporting safety for society throughresponsible sourcing and recycling

Introducing Society 5.0

15

Ensuring employee health and safety,
and making an environment
where they can excel

Okuno

Please tell us about "safety for employees"
as it pertains to ensuring the health and safety of employees and making an environment
where they can work with peace of mind.
As a pillar of our efforts to maintain employee
health, we have established a system for thecompany to pay for cancer insurance premiums and medical expenses.
Last year, we renovated our employee dormitories for both men and women, with an emphasis on making a comfortable working environment, such as enhancing the employee
cafeteria.
In addition, we have established systems suchas reduced working hours for childcare andelderly care, as well as leave from work to accompany a spouse who has been transferredout of the area. These efforts are intended tomake a comfortable environment and continue to be a company where all employees findit rewarding to work.
Recently, in accordance with "work-style reform" promoted by the Japanese government,
we have decided on a set maximum amount ofovertime work, have managed attendance by
day and by month, and have reassigned ourworkforce according to circumstances, so as toensure that employees do not have to work excessively long hours.
On the business side, our production volume isincreasing, so I think that it is essential for us
to automate equipment and introduce robots toavoid conflict with work-style reform. In addition,
we are reviewing the risk situation in our factories, promoting safety measures and disaster

Aiming to create a workplace where
the individual can feel fulfilled via effective
human resourcing under a holding company
structure

Okuno

Hasegawa

Interviewer

Passing the Baton to the Next Generation

countermeasures, and are working on a project
to install sprinklers - a product made by one of
our associated companies - in all our factories.
In the past year, have you made any big decisions regarding management?
Our biggest reform in management was toreorganize the SMIC Group with a holdings
company. We are working to make major
structural changes such as effectively utilizing
human resources, capital, and funds by placing our existing subsidiaries and associatedcompanies under SMIC.
By converting to a holdings company structure, we will be able to promote the same pay
and same conditions for the same work within
the SMIC Group, there will be more opportunities for exchanges between our bases and forcareer advancement, and it will be easier tomake capital investments. This is an important
initiative for our 100th anniversary.
Diversity has also become increasingly important. Currently, we have 14 bases overseas.
Even so, it is necessary to promote localizationin the true sense of the word, so that local employees take the lead role in operations, rather
than employees dispatched from Japan.
We are also aiming to make workplaces wherefemale employees are comfortable working, feel
motivated, and find their work to be rewarding.
Director Yuka Sato's presence in our company
has significantly changed general awareness at
our domestic bases, but there are still some areas where the advancement of female employees is totally inadequate when compared to ouroverseas bases. In the future, we will establish
a work environment and systems in which eachindividual can play an active role regardless of
their gender, nationality, age, etc.
The two of you gave us a very clear pictureof SMIC's ideas and initiatives on safety, as
well as your thoughts looking forward to the100th anniversary of our company's founding. Thank you very much.

Society

Society

Relationships with Customers

Reference: Responsibility for society
https://jp.senju.com/ja/csr/social_responsibility/

SMIC Group develops and manufactures safe and secure products. In order to provide product information accurately and

Relationships with Suppliers
SMIC Group is working to establish a safe and secure supply chain, including conflict-free mineral sourcing.

promptly, our departments in charge of sales and service are working to provide the latest information through customer service, exhibitions, and events. In addition, we have opened a contact portal on our website.

The Path to Conflict-Free

SMIC Group has established the following quality and safety policies based on our management philosophy.

In January 2011, the Group joined the Responsible Business(U.S. Securities and Exchange Commission) final rules were

Alliance (RBA) and since then has worked to build close re-implemented as a requirement, we have continued to call on

lationships with customers in the electronics industry. As a

all our suppliers to renew RMAP certification. We will continue

1． We shall comply with related laws and regulations as well as customer demands, and improve customer satisfaction by
supplying products and services with consideration for quality and safety.

member of the RMI (Responsible Minerals Initiative) since

striving to maintain a safe and secure supply chain for prod-

2014, we have actively encouraged smelters to undergo theucts such as solder bars, resin flux cored solder, preforms,

2． We shall construct, implement, and maintain a quality management system in accordance with our established quality
manuals, and continuously improve the effectiveness of this system.

RMAP (Responsible Minerals Assurance Process) examina-

anodes, pastes, and balls.

3． We shall set quality policies and targets for activities, conduct regular reviews and as necessary, and evaluate opportunities for improvement (intervals, frequency, and circumstances) of the management system.

we reported that all of our smelters were RMAP certified.

tion and obtain third-party certification, and in February 2015

Soc ie ty

Society

Quality and Safety Policy

Since the third year, when stricter compliance with the SEC

4． We shall evaluate the necessity of changes to our quality management system, and if changes are necessary, we shallreview our system to maintain its adequacy in light of our management philosophy.

Security Export Control System

Ma n a ge men t

CSR Sourcing Policy

Basic Requirements of Suppliers(respect business partners, and do fair and honest sourcing)
and CSR sourcing policies for sourcing with suppliers.

SMIC Group has developed and enhanced its export control systemand prevention of excessive accumulation of conventional weapons.

by establishing a Security Export Control Headquarters with the Rep-

In accordance with this basic policy, we have established "Security

resentative Director as the chief officer of Security Export Control, in

Export Control Regulations" and submitted them to the Ministry oforder to avoid violating laws and regulations; to comply with laws andEconomy, Trade and Industry. We are also conducting internal audits

regulations; and to implement appropriate export controls with re-every year in order to maintain our compliance. SMIC is recognizedgard to the export of cargo and provision of technology regulated byby the Ministry of Economy, Trade and Industry as a company that

the Foreign Exchange and Foreign Trade Act, the US Department of

has established a voluntary system for security trade management.

Commerce, and export control regulations in various countries; fromthe perspective of non-proliferation of weapons of mass destruction

TOPICSIntel Corporation bestowed the SCQI Award
Senju Metal Industry Co., Ltd. awarded the Supplier Continuous Quality
Improvement (SCQI) by Intel Corporation on March 7, 2019.

❶ Senju Metal Industry Co., Ltd. "Quality and Safety Policy"❶ Compliance with laws and social norms❷ Senju Metal Industry Co., Ltd. "Environmental Policy"❷ Promotion of sound business management❸ Senju Metal Industry Co., Ltd. "Purchasing Policy"❸ Emphasis on achieving quality, deadlines and stable supply❹ Senju Metal Industry Co., Ltd. "Basic Stance Required of Suppliers"❹ Emphasis on Business Continuity Plans (BCP)❺ IATF 16949* requirements that must be considered for deliverables❺ Consideration for the environment❻ Environmental management requirements that must be❻ Prohibition of sourcing from conflict zones

considered for deliverables*IATF 16949: an international quality management system standard for the automotive industry❽ Emphasis on providing information❾ Emphasis on initiatives to shorten the material sourcing period

achieved excellent results. In FY2018, only 6 out of approximately 20,000❿ Strict confidentiality⓫ Emphasis on utilizing IT

achievement of outstanding quality and performance against Intel's⓬ Information security

goals. SMIC supplies solder materials (solder balls, flux, paste, bars, and⓭ Eliminating ties to anti-social forces

wires) which are all crucial to Intel's success.
Visit to Fenix Metals recycling smelter in Poland

17❼ Emphasis on Value Engineering (VE)

This is the most prestigious award given to supplier companies that havesuppliers were given the SCQI Award. We earned this award due to our

SMIC CSR REPORT 2019

M an age m e n t

En v i ron m e n t

In addition, the basic stance we require of suppliers includes 14 items with reference to the requirements of
ISO 9001, ISO 14001, and the supply chain assessment
guidelines stipulated by RBA.

We conduct audits on Japanese and international business partners through our Sourcing Department, as wellas the related R&D Department and Manufacturing Department, in accordance with our annual plan.
In FY2018, we confirmed that there are no problems
through our supply chain assessment, with cooperationfrom our Japanese and international business partners.

SMIC has clarified the basic stance of its purchasing policy

En v i ron m e n t

Sourcing Activities⓮ Social contributions

SMIC CSR REPORT 201918

Society

Relationships with Local Communities
SMIC Group is actively involved in efforts to contribute to the local community ateach of its bases in Japan and overseas, through cultural and educational support and through environmental conservation activities.

Artisan classes
In order to raise awareness of and interest in manufacturing, SMIC
conducted the following initiatives in FY2018, where it conducted
soldering lessons and sponsored manufacturing lessons.
●

Career development support for local technical high schools (solder-●

ing lessons)Exhibited at the Asahi Shimbun "Jobs Museum" with Shinjuku Takashimaya(conducted soldering workshops)

Donating and visiting to orphanages [Date: October 8, 2018] (Senju (Thailand) Co., Ltd.)"The Orphanage Foundation of Thailand Directions Save" was established in 1974 as an organization which supports education for children●

Exhibited at the Adachi Manufacturing Festa●

Sponsored Taiyo Yuden Co.,Ltd. "Artisan Classes"●

Sponsored "Electronics Interactive Lesson" at the TDK Museumof all races in order to prevent social offenses and raise children to begood citizens. Senju (Thailand) Co., Ltd. and our Thai joint venture com-

Development of waterfront environments for fireflies to flourish [Date: June 2, 2018] (Tochigi Segment)

pany Thai Solder Industry Corp., Ltd. agree with the goals of this organization, and our representatives have visited the childcare facilities

The Tochigi Segment has become a member of the "Moka Envi-

Soc ie ty

Societyronmental Partnership Conference," a volunteer organization sponsored by the Environment Section of the Moka City Government,

Donating smart TVs to local elementary schools and teaching lessons on ecology[Date: December 17, 2018] (Senju Solder (Phils.) Inc.)and we have cooperated in nature conservation and forest stewardship in the city over the year. In June 2018, 10 employees from the

Senju Solder (Phils.) Inc. has donated smart TVs for e-learning to
improve the educational environment of children who will be re-

En v i ron m e n tsponsible for the future of the Philippines, and has conducted on-

Tochigi Segment participated in developing the waterfront environment by removing crayfish and planting so that fireflies can live on
the waterfront in nature parks in the area.

site lessons in environmental conservation and 5S since 2012.

In 2018, we donated a smart TV to Sta. Cruz Elementary School andtaught a lesson about the importance of sorting and recycling waste.

Conservation activities in a local wildlife preserve [Date: June 18, 2018] (Senju Comtek Corp.)

En v i ron m e n t

operated by the organization in order to donate food and other items.

Ma n a ge men t

Cleaning activities at Zoo Negara (Malaysian National Zoo) [Date: October 20, 2018] (Senju (Malaysia) Sdn. Bhd.)

M an age m e n t

Senju Comtek Corp.'s Chicago factory is located in Illinois, where
the NPO "Preservation Foundation of the Lake County Forest Preserves" is engaged in activities to protect native species that inhabit
Zoo Negara, a national zoo in Kuala Lumpur, Malaysia, is run by thethe local Grant Woods Forest Preserve.

local NGO "Malaysian Zoological Society." It is also supported by

Senju Comtek Corp. supported this activity by sending eightaid from corporations and the labor of volunteers. Senju (Malaysia)

volunteers including both employees of the Chicago factory

Sdn. Bhd sent 17 volunteers to the zoo as support for the organiza-

and their families to conduct conservation activities in the pre-tion. Under the guidance of the zoo staff, they enthusiastically assisted in cleaning, painting, and food preparation in the zoo and inserve.

animal enclosures.

Maintenance of bamboo grove [Date: April 22, 2018] (Senju System Technology)
March 16, 2019] (Senju Electronic (Taiwan) Co., Ltd.,
Communication volunteers for children with physical disabilities [Date:
Senju Metal Industry Co., Ltd. Kaohsiung Branch)
A total of 58 volunteers from Senju Electronic (Taiwan) and SMIC

where Senju System Technology is located, and is working to regen-Kaohsiung Branch participated in a communication volunteer pro-erate forests in the area.

gram held by the Angel Heart Family Social Welfare Foundation,

Every year in the spring, they recruit volunteers to maintainwhich supports children with disabilities as well as their families,

bamboo groves in the Kureha Hills. In 2018, five volunteers

and the Social Affairs Bureau of Kaohsiung City Government. At La-

from Senju System Technology participated in thinning thickbor Park in the city of Kaohsiung, Taiwan, children and their families
went on walks and made sketches with the volunteers.

19"Kintaro Club," is an NPO based in Toyama City, Toyama Prefecture

SMIC CSR REPORT 2019bamboo and various trees.

SMIC CSR REPORT 201920

Society

Environment

Relationships with Employees

Environmental Philosophy and Policy

SMIC Group promotes the respect of diversity, maintenance of good health, and develops humanresources in consideration of the work-life balance of its employees.

Environmental Philosophy
Diversity Workshops

The basic training policy of SMIC is a commitment by all employees toconstantly acquire new knowledge, and develop personnel that can makereasonable judgments from a broad perspective. In FY2018, a total of
406 trainees attended at total of 10,823.5 hours of lessons, including elearning, group training, and other forms of training. Employees involved in
manufacturing attended on-site improvement training and joined in meetings to report on what they learned during the training.

SMIC holds diversity workshops with two main purposes. The first is toeffectively respond to our constantly changing business environment anddiversifying customer needs by respecting and actively utilizing individual
differences. The second is to "realize a workplace where employees feel
happy, and can stay longer with peace of mind and sense of fulfillment,"by believing in employees' potential, so that they can demonstrate theirunique strengths. In FY2018, we held six such workshops with a total of
56 participants.

New Employees

Senior Management

24%

9%

Total Trainees 105

Environmental Policy
We strive to integrate the environmental values to the SMIC group worldwide and systematically promote fullparticipation of all employees in environmental activities towards a sustainable society.
1. Our commitment to the environmental goes beyond complying with environmental laws and regula-

Middle Management

10%

tions. By adopting stricter self-imposed standards such as chemical substance management, we
pursue to achieve a higher level of environmental control. Furthermore, we aim to work in harmony with

En v i ron m e n t

General Employees

Junior Management

37%

20%

communities and local government on the environmental awareness.
2. We recognize that business activities are related to the environmental challenges not only on a local
level but also on a global scale. By focusing on the following four initiatives, we are dedicated inGroup Training
Engineeringdeveloping environmental action plans to achieve continuous reduction in environmental impact.

Sales

4%

4%

1) To prevent global warming, we are committed to conserve energy and reduce greenhouse gas

Management

Ma n a ge men t

Total Time

Manufacturing

4,798 hours

7%

Total Trainees 244

10%Mid-level Employees

48%

New Employees

27%
Other Training
English Conversation Class● Junior Management Training●

Accepting Reduced Assigned Working Hours

Total Time

2,695 hours

Regardless of measures (working obligations) decreed by the Child
Care and Family Care Leave Law for workers who are raising children until they begin elementary school enrollment, we will takemeasures to reduce assigned working hours for employees who
have children after entering elementary school who apply for said
reductions.
Already, many female employees with children in elementary school
are using this system to help balance parenting and their career.

Total Trainees 57

En v i ron m e n t

Total Time

3330.5 hours

implementing environmentally sound business practices and help preserve the beauty of natureand diverse ecosystems.

emissions.
2) To conserve the Earth's natural resources, we aim to save resources and minimize waste generation through efforts that include reducing, reusing, and recycling.
3) To protect the environment and human health, we strive to reduce and/or eliminate the use ofenvironmentally harmful chemicals.
4) To protect the Earth's ecosystems such as wildlife habitat, forests, oceans, and to conserve
biodiversity, we will participate in environmental preservation activities such as tree planting.

M an age m e n tSocietye-Learning

We recognize that all humanity has the duty to protect and conserve the global environment.
To achieve the common goal of creating a sustainable society, we are fully committed to

Soc ie ty

Employee Training

3. By enabling environmentally conscious design, we intensify our efforts to develop environmentallyconscious products that will focus on various life-cycle stages for contributing to the society. In addition, we will work together with the suppliers by sharing information and responsibilities.
4. By effectively integrating Environmental Management System and Quality Management System, we
strive for continual improvements in the environmental performance by establishing goals, training,

Fostering Employee Wellbeing
Various Systems

HealthManagement

Welfare21

and audits to reduce pollution and environmental impacts.

Frequency/Period

Details

General Health Examinations

1 time/year

Implementing general health or lifestyle-related disease medical examination for employees.

Lifestyle-related Disease
Medical Examination

2 times/year

local environmental preservation activities to fulfill our responsibilities as good "corporate citizens".
6. Establish environmental policy, environmental targets and goals, and reassess periodically and asneeded.

Special Health Examination

2 times/year

We conduct health examinations with special items for employees engaged in work that
can harm the body.

Cancer Insurance System

25 years old orolder

The company pays the insurance premiums for employees 25 years of age or older who enroll incancer insurance, thereby reducing the burden of unexpected cancer-related diseases on employees.

Medical Expense
Reimbursement System

As needed

The company bears part of the cost of medical insurance required for treatment of illness
and injury suffered by employees in their private lives.

Consultation Office

Any time

The company offers counseling about the workplace and work matters through an external service.

SMIC CSR REPORT 2019

5. Enhance communication with local communities, exchange information, and actively engage in the

Senju Metal Industry Co., Ltd.
P res iden t

Ryoichi Suzuki

SMIC CSR REPORT 201922

Environment

Environment

Eco-Factories

Environmental Activities

SMIC Group not only engages in product development and manufacturing, but also promotes energy conser-

SMIC Group has developed its own eco-friendly equipment and eco-friendly products that realize energy sav-vation and 3R activities (reduce, reuse, and recycle waste), and operates in compliance with environmental

ings, in consideration of the global environment. We will continue to promote further energy saving moving

laws and regulations to reduce environmental pollution risks so that we can carry out environmentally-friendly

forward.

production activities.

By quantitatively monitoring and measuring the environmental

provement activities especially reducing the amount of specified

load associated with our business activities, we can grasp bothchemical substances we use. In FY2018, our GHG (greenhouse

input and output information such as the amount of energy wegas) emissions at all our Japanese bases were 4.3% lower than in

use and our emissions, and also save energy and reduce, reuse,

2011, compared to our target value of -2%, and, we managed toand recycle waste. We have also implemented environmental im-

achieve total emissions of just 17,887 tons.

Water
Supply15,435 t

GHG

457,619 m3

Scope 1

4,123 t-CO

Scope 2

13,758 t-CO

(All domestic bases)

Materials Sourcing

EnergyEn v i ron m e n t

Electricity

33,553 MWh

City Gas

1,622 km3

Ma n a g em ent

LPG

22 t

A Fuel Oil

23

Kerosene

17

Gasoline

120

Light Oil

22

ChemicalSubstances*PRTR Notification Targets

957 t

17,887 t-CO

2

● Deployment of electric power monitoring

The Bearing Manufacturing and Research Department at

SMIC Group collects and aggregates data on our electric-

the Tochigi Segment recycles the waste liquid produced

ity usage and monitors this visually with graphs. By graphingform the hydrocarbon cleaning liquid used to clean prod-

the relationship between the amount of electricity we use on

ucts. This is done with a recycling distillation system, andworking days and ambient temperature, we can see that ourapproximately 90% of the waste liquid is recycled and re-electricity system uses a lot of electricity for cooling in theused.

summer and for heating in the winter, as well as the variationin our electricity usage even on working days of the week.
This lets us take action.

2

At our headquarters and the Tochigi Segment, our power usage status is displayed on large monitors in order to raise2

employee awareness of power saving.
Drainage

453,043 m 3

BOD

1.28 tCOD

0.86 tProduction Activities

ChemicalSubstances*PRTR Notification Targets

Final Amount ofWaste Disposed
Recovery/Recyclingof Residual Materials

AmountRecycled

Sales/Transportationof Products

M an age m e n tSocietyRaw
Materials

OUTPUT

Business Activities● Recycle of waste clearing liquid

En v i ron m e n t

INPUT

Eco-friendly Equipment

Soc ie ty

Global Warming Prevention: Environmental emissions from business activities in FY2018

11 t
0.9 t

1,296 tEco-Products

Intake/output diagram of Tochigi Segment, which accounts for the majority of all our Japanese bases

SMIC is focused on the development of eco-friendly products in order to

Carbon dioxide emissions from transportation
Our carbon dioxide emissions from logistics in 2018 were as shown

further reduce the environmental impact of all of our products, which in600

532.6

on the right. The annual consignment volume of cargo in Japan is
calculated from the transport segment and distance for each prod-

clude solder materials, soldering equipment, and plain bearings. Even after

Carbon dioxide emissions from transportation

an industry standard, we have continued to develop products that create

417.5

400

uct category, and we monitor the items required by Scope 3. We
also monitor CO2 emissions related to employee commutes.
76.7

73.4
10.7

SolderProducts

SMIC CSR REPORT 2019new value, with various usages and our management philosophy always inmind.
In recent years, we have announced our "L29-145HF" solder paste, which

200

23

the lead-free solder M705 - which we developed in 2001 - was adopted as

SolderMaterials

Bearing
Products

FA
Products

Waste

can be soldered at a temperature about 50°C lower than M705 in order toreduce CO2 emissions, and which has both drop impact resistance and0（t-CO2）heat fatigue resistance.

SMIC CSR REPORT 201924

Management

C or por a te Prof ile

GovernanceSenju Metal Industry Co., Ltd.

SMIC is striving to strengthen its corporate structure through the placement of corporate auditors, inspectors, tax audits, and the establish-

DUNS# 690663091

ment of the CSR Promotion Headquarters, Management Committee, and Strategy Committee, in addition to the General Meeting of Shareholders and the Board of Directors called for by laws and regulations.

Established: April 15, 1938
Headquarters: 23 Senjuhashido-cho, Adachi-ku, Tokyo 120-8555
President: Ryoichi Suzuki

Corporate GovernanceBusiness scale (non-consolidated)

Business portfolio
Senju Holdings Co., Ltd.

General Meeting of Shareholders
Appointment/Dismissal

Senju Metal Industry Co., Ltd.

Disclosure of Information

Board of Directors

Society

Information Disclosure
Guidelines

Appointment
DirectProposalApproval

En v i ron m e n tStrategy Committee
Sales Committee

Ma n a ge men t

Business
Departments

Industrial Machinery
Department

Solder Department

Bearings and Special
Products Department

Development Technology
Department

Production Technology
Department

International Business
Department

Quality Assurance
Department

Finance
Department

General Affairs
Department

Direction/Supervision

Domestic Affiliates

Industrial Analysis
Service Ltd.

Overseas Affiliates

Europe●Manufacture and sale of metal powder and bearings

Capital: JPY400,000,000●

Manufacture and sale of soldering solvents and adhesives●

Manufacture and sale of soldering equipment

Inspectors●

Manufacture and sale of fire extinguishing equipment parts(affiliate companies)●

Manufacture and sale of machinery and equipment related
to the above items

Facilities in Japan and abroad

Disaster Prevention
Committee
Environment Committee(April 1, 2018 - March 31, 2019)

DirectTraining
Committee(As of March 31, 2019)

Countries where we do businessJapan: 20 (8 of which are manufacturing bases)

Thailand, Czech Republic, Germany, Philippines, USA,

Abroad: 32 (15 of which are manufacturing bases)

Malaysia, Mexico, South Korea, Taiwan, China*As of March 31, 2019

(Major domestic customers: 570 / Major overseas
customers: 1,050)

Labor
Committee

Submission andReporting ofImportant Matters

Direction/Supervision

Net Sales: JPY58,060,000,000

Health and
Safety Committee

Execution of BusinessInformation System
Division

Smelting, alloying, casting, and spreading of metal;
manufacture and sale of processed productsAuditors

Tax Audit(External)

Other Committees

Planning andExecution ofManagement Policy
Submission andReporting ofImportant Matters

Direction/Supervision
DirectReportOperating Officer●

ReportDecision Making inManagement
Challenge Proposals

Management Committee*1

ProposalCSR & Public Relations
Division

AuditsPresident

Code of Ethics

CSR Promotion Division*1: Includes operation of subsidiaries*2: Includes monitoring of subsidiaries

SMIC Group Employees

Other Guidelines

AuditsAuditsDomestic and Overseas Employee Distribution

Quality Audit Office *2Business Audit Office *2
Security Export Control OfficeDirectDirectSubmission and Reporting of Important Matters

Senju Sprinkler
Co., Ltd.

Senju Electronic
Corp.

North America

China

Senju Giken
Co., Ltd.

Abroad27%（627）

Total Employees

73%（1,731）

2,358

Senju System
Technology Co., Ltd.

7%
（38）

Japan

Overseas

Abroad33%（589）

Contract
Employees

Regular
Employees

1,802

Japan

67%
（1,213）

556

Japan

93%
（518）

Other Asian Regions

Gender Distribution

25

Board of Directors

Management Committee

Auditors and Inspectors

Fraud Prevention

The Board of Director consists of 5

The Management Committee con-

We have appointed one auditor andOur employment rules clearly state

directors, 1 corporate auditor, andsists of directors and executive of-

one inspector. These officers carry

the importance of compliance, and1 inspector. It follows relevant laws

ficers. It deliberates on legal mat-out audits of daily management ac-

employees follow these rules withand regulations as well as the Ar-

ters and determines or approves

tivities, including the execution of

integrity in order to maintain order inticles of Incorporation to appoint orimportant matters in the execution

duties by directors. Auditors attend

the company.

dismiss executive officers and makeof business. It also submits matters

meetings of the Board of Directors,

SMIC's basic CSR policy "Fairresolutions on the agenda from therelated to business execution to thefulfill their duties to prevent illegal orTransactions and Ethics" and CSRManagement Committee, as the final

Board of Directors that should beseriously unreasonable resolutions,

Practice Target "Ethics" both prohib-

decision-making body of SMIC busi-

deliberated or decided by the Boardand conduct activities that comply

it acts of bribery, in order to prevent

ness management.

of Directors.

with laws and regulations.

corruption.

SMIC CSR REPORT 2019

Women

36%

Total
Men

1,510

Women

848

Men

Women

Men

64%
Women

32%

50%

Regular
Employees
Men

1,233

Women

569

Contract
Employees
Men

Men

277

50%

Women

279

68%

SMIC CSR REPORT 201926