Hirata Corporation

Corporate Social Responsibility Report

CSR REPORT 2021

E xecutive Me ssag eFirst, I would like to express my deepest condolences to all the victims and theirfamilies who have been affected by COVID-19, and sincerely hope that thosecurrently suffering from the virus will recover quickly.

■ For creating a sustainable society after COVID-19
The year 2020 was marked with the COVID-19 pandemic, which halted the businessof many companies. In these uncertain, seemingly endless COVID-19 times, Hirata
will play its role as your best partner to help overcome this pandemic, with its 70
years of proven record of delivering quality production facilities and services.
Our markets including the EV market have a growing need for decarbonizationoriented facilities. In the New Normal where businesses are required to embrace
remote working and other new working styles, Hirata is continuously contributing tocreate a sustainable society and achieve the SDGs through its businesses.

■ Business development and social contribution
In June 2020, our new Kumamoto headquarters factory "Headquarters Building" wascompleted finishing the construction which started in January 2018. This new factory
has the headquarters and factory operations under one roof for greater efficiency
and production capacity. With the machine tools programmed to run unattended
overnight, the factory can now operate around the clock for further reinforcement of
our operating base.
As a contribution to the community, our employees volunteered to help victimsof the "2020 July Kyushu floods" in Kuma-mura, Kuma-gun, Kumamoto Prefecture.
Also, we have been a main sponsor of Roasso Kumamoto in the J-League (Japanprofessional football league) since 2018. Hirata will work for the development of ournative region together with the people from the community.
February 2021 marked my 10th year as the president of Hirata. Thank you very muchfor the warm supports you have consistently made for us over this ten years.
We at Hirata will strive for all interests involved and look forward to yourcontinuing close relations.

President

Yuichiro Hirata

The Global Production Engineering Company

1Corporate Social Responsibility Report 2021

Contents

Social Report

Executive Message………………………… 1

Together with Customers………………… 9Management Philosophy…………………… 2

Together with Business Partners………… 10

Basic CSR Policy / Overview of Company and Business…… 3

Together with Employees………………… 11

Products Information……………………… 4

Together with Shareholders and Investors…… 14

Topics………………………………………… 5

Together with Local Communities……… 15

Management

Environmental Report

Corporate Governance…………………… 6

Environmental Management……………… 16

Compliance, Corporate Ethics…………… 7

Environmental Conservation in Business Activities…… 18

Risk Management…………………………… 8

Environmental Consideration for Products…… 19

Editorial Policy
In order to inform the business activities of Hirata Corporation and the relationships with our
stakeholders, we hereby issue the CSR Report 2021.
By closer communications with stakeholders through the Report, we will improve ouractivity level. We truly appreciate your direct opinions and comments.
Scope of report
Target period
Organization：FY2020 (April 1, 2020 to March 31, 2021)：Hirata Corporation, non-consolidated (consolidated results are added to thechanges in business results)
Published：June 2021 (Next scheduled report: June 2022)
Guidelines referred：GRI "GRI Standards 2016"
The Ministry of the Environment, "Environmental Report Guidelines (2018 edition)"Contact：Corporate Planning Department
TEL: 81-96-272-3668 FAX: 81-96-272-3696
Investor Relations & Public Relations Department
TEL: 81-96-272-5558 FAX: 81-96-272-3618
Website：https://www.hirata.co.jp/en/

Management Philosophy
Under the management philosophy andbasic CSR policy, Hirata Corporation willcontinue to contribute to developing
a sustainable society, cooperating andproviding mutual support with our many
stakeholders to conduct business activities
and activities of every single employee.

・MAKES THE BEST USE OF ITS MEMBERS.
・CHALLENGES TECHNICAL INNOVATION.
・RESPECTS HUMANITY.
・OPENS THE DOOR TO THE CREATIVE LIFE.
・CONTRIBUTES TO THE SOCIETY.
・MAKES OUR CUSTOMERS SUCCESSFUL.

The Global Production Engineering Company

2Corporate Social Responsibility Report 2021

Basic CSR Policy

12
3

Through technological innovations, we manufacture products that contribute to social development.

4
5

We build up appropriate relationships with all stakeholders.

By realizing the customer's desire for quality, safety, and productivity, we meet these expectations of society through our ceaselesstechnological innovations.

We respect human rights of all persons who are involved with our company.

We respect the individuality and personality of everyone involved with our company and build a workplace, where employees can feelpride and satisfaction in their job.

We comply with related laws, social norms and internal regulations and carry out fair and impartial
business activities.

We carry out fair and impartial business activities in compliance with laws, etc., and secure transparency through timely and appropriate
information disclosure. Through these activities, we maintain a sound investment environment.

We formulate appropriate relationships based on mutual trust with all stakeholders, including business partners and cooperate with eachother for sustainable growth.

We make efforts to protect the environment and contribute to society through all corporate activities.
By striving to protect the environment, we ensure a safe and healthy life for local residents and actively contribute to the society.

About the Sustainable Development Goals (SDGs)

The Sustainable Development Goals are universal call included
as a part of the 2030 Agenda for Sustainable Development which
was adopted in the UN Summit held on September 2015 to action
toward realizing a better, sustainable world by 2030.
The SDGs represent 17 goals that pledge to leave no one
behind on the planet. These are now a common goal for the global
community. Hirata contributes to the achievement of the SDGs goals
through its business activities.

Overview of Company and Business

Unit: millions of yen
Non-consolidated
Consolidated
Capital2,633 million
yen
Hirata Corporation
94,163
Stock Exchange Listings T he First Section of the Tokyo
1
 11 Hitotsugi, Ueki, Kita, Kumamoto,80,54277,302 Exchange (Code 6258)
Stock
861-0198 Japanof
Shares
10,756,090
shares
TEL: 81-96-272-0555 FAX: 81-96-272-7901 Issued Number
69,74565,612
Numberof
Shareholders
9,708
RepresentativeP resident and Representative Director
65,25562,78457,751
Production baseK
 umamoto prefecture:
Yuichiro Hirata
52,699Kumamoto
plant,
Kumamoto
Date Established December 29, 1951
48,123east plant, Kusuno plant,
Accounts Closed March 31 (annually)
Shichijo plant
Employee Number C onsolidated 2,221 employees (1,862
Tochigi prefecture: Kanto plant
employees full-time)
Shiga prefecture: Kansai plantNon-consolidated 1,382 employees (1,065
employees full-time)

Company Name
Headquarters

Business Results

March 31,2017

Net sales

March 31,2018

March 31,2019

Ordinary income

Non-consolidated

March 31,2020

Unit: millions of yen

Consolidated

Unit: millions of yen

94,16380,542

9,247

77,302
8,039

69,74562,78457,751

65,612

65,25552,69948,123

6,182

6,306

6,066

4,963

4,830

2,627

March 31,2017

March 31,2018

March 31,2019

March 31,2020

March 31,2021

Unit: millions of yen
9,247

March 31,2021

March 31,2017

March 31,2018

March 31,
2019

5,176

2,861

March 31,2020

March 31,2021

*As of March 31, 2021

The Global Production Engineering Company

General Meeting of Shareholders

3Corporate Social Responsibility Report 2021

Products Information
Main Product Line Introduction

Automotive Production Equipment BusinessWe manufacture state-of-art parts production equipments for assembling electric vehicle (EV)drive units and battery packages as well as hybrid vehicle motors and drive inverters. Our range of
assembly equipment is used in automobile manufacturing, from powertrains - the power transmission/
drive key components, through electronics like computers for controlling such key components, invehicle electronic components like sensors, air-conditioning air compressors, and ABS brake modules.

EV Lineup

EDU（Electric Drive Unit）

Inverter

Semiconductor Production Equipment BusinessWe manufacture and sell equipment platforms, conveyors, and heat treatment equipment for thesemiconductor front-end process as well as intra- and inter-process conveyors for the back-end
process.
For panel production, we offer solvent coaters for flat panels and boards used for organic EL/
liquid-crystal displays, glass cutting/transport/cutout/transfer systems, and others as the optimum
solution for customer's factory layout and logistics.

4-port transfer robot

Coating equipment Head Coater
HC series

Home Appliances and Other Production Equipment
Making the most use of Hirata Group's technologies in transfer, robot, clean, andprecision areas, we globally manufacture and sell ever-evolving home appliancesfrom parts production to final assembly, logistics-related equipment such as
stockers and carrier devices, and tire-related production facilities.
3D picking system
The Global Production Engineering Company

4Corporate Social Responsibility Report 2021

TopicsDiscover some of our stories from April 2020 through March 2021.

World-class Headquarters Building complete

Headquarters and factory operations under one roof to enhance efficiency and productivity
In June 2020, our new Kumamoto headquarters factory "Headquarters
Building" (called the HQ building) was completed finishing theconstruction which started in January 2018. The HQ building is on the
Kumamoto plant premises. With an overall length of 200 meters and a
total floor area of 22,458 square meters, this 4-story building incorporates
the headquarters and factory operations under one roof for greater efficiency and production capacity.
The factory area is approximately 150 meters long with a three-story ceiling. Automobile- andsemiconductor-related production equipment parts are manufactured in this area. Equipped with 20
processing facilities with machine tools programmed to run unattended overnight, the factory can operate
24 hours a day. We will promote more self-manufacture using digital technologies.

Factory area equipped withmachine tools including five-faceprocessing machines

A Noh stage built in the entrance
hall. Symbolizes the HQ building asa place to appeal about Kumamoto
and Japan to the rest of the world.

A 150-meter aluminum design panel over
the outer wall having a mural of Mount Aso,
Kumamoto Castle, Higo Rokka or six unique local
flowers, and part of the Five Bridges of Amakusa.

Concludes basic tie-up agreement with SONIRE
In January 18, 2021, Hirata concluded with SONIRE Therapeutics Inc. (called SONIRE) a businesscollaboration agreement on co-development and manufacturing of high intensity focused ultrasound(HIFU) treatment devices. SONIRE is currently developing HIFU treatment devices targeting specificallyon the treatment of pancreas cancer which is currently considered incurable. SONIRE's HIFU
technology, combined with Hirata's robotics, will come into products that help physicians provide
patient-friendly, non-invasive cancer treatments.

Receives Production Response Award from Hitachi Automotive Systems
In October 6, 2020, Hirata received the "production response" award from
Hitachi Automotive Systems, now Hitachi Astemo, Ltd. (called Hitachi AMS).
We were awarded for the contribution to Hitachi AMS' earlier launching bymeeting their request to move up the delivery of rotor assembly equipmentthat had been ordered in 2019.

HAS, a Hirata Group company receives "Special Award" from JATCO Suzhou
Hirata Automated Machinery (Shanghai) Co., Ltd. (called HAS), a
Hirata Group company in China received the "Special Award 2019"from JATCO Suzhou (called JSZ) in September 14, 2020. HAS wasevaluated for its large-scale CVT production line delivered to JSZ,
which contributed noticeably to the startup of JSZ factory.

The Global Production Engineering Company

5Corporate Social Responsibility Report 2021

Management

Related SDGs

Corporate Governance

We are enhancing corporate governance to meet the expectation of trust from all of our stakeholders.

Basic Stance

At Hirata Corporation, as a company targeting the global market, we promote the effective management
as well as the emphasis on corporate governance to fulfill the social responsibilities, while also enriching
the risk management/compliance system and by planning to strengthen the competitiveness of businessto improve the corporate value.
Moreover, we believe that companies should assume and stand in the shoes of the public, public
interest, and social factors and keep a good relationship with all of our stakeholders will lead to theimprovement of shareholder return.

Corporate Governance Framework

The corporate governance system is as follows as of June 25, 2021:〈Board of Directors〉It is held once a month as a scheduled meeting or ad hoc as required to decide
important matters including the management policy and the intermediate or annual management planof the Hirata Group and supervise the progress of the management plan and the operation execution
status of the management personnel. Four of the ten directors constituting the Board of Directors areoutside directors in order to strictly exercise the surveillance function over the Board of Directors. Theirterm is one year in order to clarify their management responsibility as a director.
〈Management Meeting〉It consists of 15 executive officers (6 interlocking directors and 9 full-time
executive officers) elected by the Board of Directors, and deliberates the resolution matters of theBoard of Directors in advance and decides various matters on the execution of operation based on
the management policy and the plans specified by the Board of Directors. It is held once a month asscheduled or ad hoc as required. In order to clarify the operational responsibility, all of the executive
officers are elected as commissioned officers and their term is one year.
〈Board of Auditors〉It is established to audit the appropriateness of the duty execution status of thedirectors in the Board of Directors. The Board of Auditors consists of four auditors all of which areoutside auditors. The auditors have a high degree of professionalism and perform an appropriate audit
from the standpoint of the outside auditor.
〈Accounting Auditor〉We enter into an audit contract with KPMG AZSA LLC. and are receiving theiraccounting audit. We consult the auditing company on important accounting issues as needed andreceive advices about appropriate
measures.
General Meeting of Shareholders〈Designation/Compensation Advisory
Appointment/Removal
Appointment/Removal
Appointment/Removal
Committee〉It has been established as
Board ofBoard of Directors
Designation/an arbitrary advisory organization of the
AuditorsCompensation
Directors
Advisory Committee Recommendation
Board of Directors. The purpose of thisAuditors
President
Audit
committee is to deliberate importantmatters such as the designation and〈Decision-making/Supervising〉
Coordinationcompensation of directors and executive
Supervising
Appointment/Removal
Audit Accounting
Reporting
Reportingofficers, secure the objectivity and
AuditorManagement
Meetingtransparency of these matters and further CSR Committee
Coordination
enhance the corporate governance
Executive Oﬃcers
Risk Management
Coordination
system.
Committee〈Operation execution〉
Non-consolidated

Unit: millions of yen

Consolidated

94,16380,54277,302

69,74562,78465,61257,751March 31,2017

March 31,2018

March 31,2019

65,25552,69948,123

March 31,2020

March 31,2021

Unit: millions of yen

9,247

8,039

6,182

6,306

6,066

4,963

4,830

2,627

March 31,2017

Compliance
Committee

March 31,2018

March 31,
2019

5,176

2,861

March 31,2020

Business function/
Administrative function/Subsidiaries

March 31,2021

Reporting
Audit

Internal Audit Department

The Global Production Engineering Company

緊急事態の発生6

Corporate Social Responsibility Report 2021

Related SDGs

Compliance, Corporate Ethics

We are committed to ensuring thorough implementation of compliance and corporate ethics to conduct fair and impartial business activities.

Compliance Charter
Fundamental Principles

Because of our "global" nature, we at Hirata Corporation as wellas each of our group companies abide by a set of establishedrules we call our "Code of Conduct" and strive for total
compliance to it in order to effectuate commercial endeavorsthat are both fair and transparent always in accordance withlegal statutes both domestically and abroad along with societal
norms and in-house regulations.

Code of Conduct

Based on our business principles, we at Hirata Corporation
are fully aware of our mission and role as a corporate entitywith respect to our valued customers, shareholders, business
partners, employees as well as the members of our local
community and, in order to make a contribution to society atlarge, the following Code of Conduct is applied to all employeesof every company in the Hirata Group with every single
employee having the responsibility of maintaining and improving
upon them.
1. Abiding by legal statutes and regulations
We at Hirata shall always abide by relevant laws and internal
regulations whenever engaging in business activities, always
compliant with social logic.
2. Engaging in fair and just business
We at Hirata, as a company that develops and provides optimal
products and systems that benefit society, shall prioritize customer
satisfaction and work to build fair, just and transparent relations
with business partners.
3. Disclosure of corporate information
We at Hirata shall disclose information on the managementof our company as well as on the condition of our activities
to shareholders and investors at the suitable time and in an
appropriate and fair method always in accordance with relevantlaws and statutes. We shall take all the proper precautions
whenever handling non-disclosed corporate information (insider
information) making sure there is no profit-sharing or favors
bestowed to individuals involved in the transaction of equity andother securities based on this information or to other parties.
4. Proper management and utilization of corporate assets
We at Hirata shall manage our company's tangible and nontangible assets in accordance with internal regulations and neverfor personal gain or in ways contrary to corporate objectives.
5. Contribution to society
We at Hirata, as a good corporate citizen, shall place our energy
in protecting the environment, reusing natural resources anddeveloping the local community with the hope of entrenchingourselves deeply within the community. We are against antisocial
movements and organizations that threaten the order and securityof the citizenry and vow never to associate with them.
6. Respecting the individual
We at Hirata shall strive to respect the rights, privacy, characterand individuality of each and every single individual and make for a
happy workplace for all.
7. Controlling confidential information
We at Hirata are devoted to the strict management of not only ourvalued customers' personal information but also our own secretcorporate information and employees' confidential data, which we
vow never to illegally or unfairly, disclose or leak either during theiremployment or after their departure from this company.
8. Duty of practice and accountability
We at Hirata shall promptly report any and all infractions of thisCode of Conduct in the event of their detection during the courseof the execution of business in accordance with the same. Shouldsuch a report be issued, the employee or employees in question
shall be protected from liability.

Promotion of Compliance

Hirata Group ensures its employees takecompliance training programs covering the
Subcontract Act, security trade control, and soon. We also provide appropriate measures andeducation based on the results of harassment
comprehension tests and compliance surveys.
The compliance committee met twice a year fora regularly scheduled meeting and deliberated
on the implementation state of compliancemeasures in Hirata Group, promotion programs,
law compliance state, etc. Also, a complianceawareness document is issued periodically tohelp employees foster compliance mindedness.

Helpline

Hirata Group, under our Code of Conduct,
established an external reporting contact in addition
to the internal reporting contact for employees
to report problems that violate laws and internal
regulations, and to address potential risks that may
violate laws and internal regulations as early as
possible.
Anyone can report to the external reporting
contact anonymously without reprisal. The
investigation result will be reported to theCompliance Committee and addressed appropriately.

The Global Production Engineering Company

7

Corporate Social Responsibility Report 2021

Related SDGs

Risk Management

We have developed a risk management system which enables us to accurately determine various risk factors and respond to them appropriately and promptly.

Risk Management System

With Administration Division Director as risk management manager, we have been working on minimizing risks
associated with compliance, information security, incidents, and disasters that may seriously affect Hirata Group'sbusiness operations. Furthermore, the Risk Management Committee has been set up for further enhancement of
our integrated risk management system across the entire Group.
The Risk Management Committee oversees integrated risk management, including preparation of risk
response policy and related rules, risk information collection/analysis, and development of countermeasures suchas loss avoidance/recommendation/transfer. Through the Committee's regular monitoring and risk management
auditing of our operating organizations and group companies, we ensure that our risk management system isappropriately built and operated with continuous improvement.

BCP (Business Continuity Plan)

To ensure our business continuity in unexpected disasters and problems, we are promoting the BCP (Business Continuity Plan) for preventing, defending against, and reducing risks that are identified in advance.
[Coping with COVID-19]
Amid the globally spreading COVID-19 pandemic, the BCP Task Force has pursued and thoroughly implemented
measures such as workplace infection prevention, remote working, health monitoring of employees on businesstravel, utilization of Web meeting, and regular disinfection of facilities.
In FY2020, one employee tested positive but no other employees confirmed to be infected and there was
no impact on our operations. We will continue our measures until the pandemic is over.
[Disaster response]
In 2020, Japan experienced one disaster after another - 2020 Kyushu floods,
Typhoon 10, and Fukushima offshore earthquake. Based on our policy of
putting maximum priority on human life, the safety of Hirata employees andtheir families was confirmed via the safety confirmation system every timeafter such a disaster. We also checked for damage at our factories and offices
as well as customers and suppliers. Fortunately, no great damage was done
to our stakeholders.

Droplet infection prevention panel

Information Security

In order to protect information and information assets (information devices and the like) from threatssuch as leakage and damage and to safely carry out business activities, Hirata Corporation is working todevelop information security management regulations and prevent leakage of confidential information andother similar incidents through systems and activities centering on the information security committee.

Export Control

In the global community, the importance of security trade controls has been increasing against the
backdrop of global threats (terrorism and the development of nuclear weapons, etc.). Hirata Corporation
has established the "Regulations for Security Export Controls" to help implement appropriate security
trade controls designed to maintain global peace and safety and has strengthened security export
control systems regarding the appropriateness of goods and technologies, responses to the revision oflaws, employee education, and internal audit procedures. We have also obtained the "special blanket
permission for export and services (program relating to use)" and the "special blanket permission forservice transactions" by which individual permission from the Minister of Economy, Trade and Industry is
not required with respect to some goods and services.
The Global Production Engineering Company

8Corporate Social Responsibility Report 2021

Social Report

Related SDGs

Together with Customers

As one of your best partners, we deliver reliability and satisfaction to the world bymaterializing various customer requests for quality, safety, and productivity.

Quality Assurance

As part of quality assurance, Hirata is working on product quality improvements. Due to the increasing risk of
COVID-19 transmission, we have a new education style such as online seminars to upskill our employees todeliver safer and more secure products.
■ For enhanced product reliability
As in the previous fiscal year, a reliability education was provided by an outside lecturer for design department
employees. This education is intended to help them learn the FMEA* concept leading to product reliability
assurance, incorporate it in the design phase, and thus make our products more reliable.
In addition, basic metal-surface treatment education was provided for
employees of design and procurement departments. We are constantly
providing education in pursuit of higher reliability at component level.

FY2018* Failure Mode and Effect Analysis

FY2019Product Evaluation

FY20205

Corporate
Evaluation

4

Evaluation of person
in charge (Sales)

3
2

Learning online
10Service
Evaluation

Evaluation of person
in charge (Design)

Customer Satisfaction

Technology
Evaluationof personto
We are working to improve customer satisfaction through the opportunity
for eachdepartment
Evaluationin charge (Manufacture)interact with customers, collecting customer's opinions and suggestions to improve our products, as wellas our service support. Every year, all Hirata Group companies distribute customer satisfaction surveys
with a common set of questions to all customers. Based on these valuable opinions, we will strive
towards strengthening the service support and cooperation among departments in the future.

Customer satisfaction survey results for FY2018 to FY2020<Satisfaction weighted average score (5 points max.)><Continuity for the future>

FY2018FY2019Product Evaluation

FY20205

Corporate
Evaluation

4
3

Continual use

Evaluation of person
in charge (Sales)

2

FY2018No opinion
75％

16％

1
0

Service
Evaluation

Evaluation of person
in charge (Design)

FY2019FY2020Technology
Evaluation

Evaluation of person
in charge (Manufacture)0％Will not use

86％
92％
50％

9％

3％
11％
8％
100％

The Global Production Engineering Company

9Corporate Social Responsibility Report 2021

Related SDGs

Together with Business Partners

We are working to build cooperative relationships based on trust with our business partners to secure good long-term business partnerships.

Suppliers Meeting

In order to prevent the spread of infection, the Web EDI posting replaced the physical gathering of the
Suppliers Meeting in FY2020. Following is the extraction from the EDI.
Procurement policy for FY2020
Basic policy(1) We respect law and ethics. We behave without discrediting ourselves.
(2) We procure from suppliers in a fair and equitable manner treating them as our equal partners.
(3) We mind environmental load reduction when selecting suppliers and goods procured.
Request to our suppliers(1) We are restructuring our procurement methods for cost competitiveness.
For any goods procured, the procurement method and source may be reviewed for any change whenever there will be mutual benefits,
without regard to conventional customs and channels. Parts will be further standardized to narrow down procured item types.
Example) Some different parts with similar function currently procured from several manufacturers will be reduced in variations while
increased in quantity per type. We adopt products from potential suppliers that may be beneficial to us.
(2) Request for achieving the on-time delivery rate of 99% or up and the defect rate of 0.3% or less(3) Your cooperation is appreciated in our efforts for green procurement and conflict minerals survey.
(4) Request for continuing supplies in case of contingency(5) We take an active interest in "CSR procurement and SDGs" in order to achieve a sustainable society.
FY2020 Supplier Recognition Awards
We honored suppliers for their outstanding performance by awarding Best Supplier award to threecompanies, Excellent Supplier award to three companies, Citation of Length-of-Service award to one company for its 50 years ofbusiness with Hirata, and Citation to 12 companies.

Welding skills workshop

We held the welding skills workshop for suppliers to help foster expert welders with an organized education
system for ensuring stable quality control. The workshop, once an annual event in the past five years, hasbeen upgraded to a full-scale program with the lecturer Shigeyoshi Koga, a retiree from Japan Marine United
and a Contemporary Master Craftsman, decorated with the Yellow Ribbon Medal. The workshop held from
July 2020 through October 2020 consisted of six parts, stepping up from (1) basics, to (2) in-house training
back at each trainee's company, and then to (3) one-on-one tutoring with the lecturer, after which (2) and(3) were repeated. A total of five motivated trainees fromthree companies attended the workshop for the masteryof highly difficult welding techniques. We will plan andhold workshops on practical skills focusing on fostering ofexperts for continued partnership with our suppliers.

VOICE

Keep on being a good partner
Kyushu Mitsubishi Electric Sales Corporation
Keiichiro Segawa, Executive Managing Director, 3rd Sales Headquarters General Manager
Yuji Matsumura, Executive Officer, Kumamoto Branch Manager
We are very proud and honored to be receiving the Best Supplier award.
As the Mitsubishi Electric's FA engineering trading company, we have been challenging new technologies demanded bymarkets together with Hirata Corporation over 50 years with our many new products adopted. Our challenge is endless and isaiming higher than ever.
Even in this tough corona situation, the business must go on. We are making our working environment adaptive to new normal
with specific measures such as: (1) staggered commuting and remote working, (2) temperature screening and hand sanitizing
points, (3) limits on the number of people allowed for a meeting, (4) air purifier and LOSSNAY Ⓡ in all the rooms, (5) Web-baseduser meeting, (6) Teams-based PCs supplied for all employees working from home, (7) droplet infection prevention partitions
installed, (8) online participation of employees from other prefectures in office meetings.
We are eager to continue our partnership with Hirata Corporation in an even better way for years to come while flexibly
taking measures to prevent the spread of the coronavirus. Each one of us at Kyushu Mitsubishi Electric Sales Corporation is forever
striving to advance our technologies as well as make personal and professional progress.

The Global Production Engineering Company

10Corporate Social Responsibility Report 2021

Related SDGs

Together with Employees

We are working to develop a workplace where individuality and personality of employees are respected, and they can take pride and satisfaction in their work.

Global Human Resource Policies
By combining our basic policies concerning the mechanisms andoperations of the Hirata Group's various common systems as"Human Resource Policies," and implementing specific measures
based on these, we will strengthen our commitment to being acompany where employees can act with pride and satisfaction
through their work.
Ⅰ

Ⅱ

Ⅲ

Ⅳ

Respecting human rights and diversity
We shall respect the individual character and the humanrights of all people working in the Group. We definitely
do not do any harsh and inhumane treatment including
sexual harassment, sexual abuse, abuse of authority,
corporal punishment, mental or physical coercion or verbal
abuse of workers. We definitely do not employ child laboror forced labor. We shall treat and appraise each andevery employee in a fair and impartial manner. We shallnot discriminate against any employee on the basis ofnationality, race, religion, age, gender, physical or mental
disability, or other legally protected attributes.
HR activities in compliance with applicable laws andregulations.
We shall comply with all applicable laws and regulationsof each region regarding the employees' rights. The rights
of workers to associate freely, join or not join labor
unions, seek representation, and join workers councils inaccordance with local laws shall be respected.
Fair, equal, and transparent HR system
We aim for a fair, equal and transparent HR system. The
concept of the system should be properly communicatedto employees and be as open as possible.
Support for skill development
Based upon our Corporate Philosophy of "making thebest use of its members", we shall positively support for
professional development.

Support for capability
development
Hirata Corporation thinks, according to its
management policy of "making the best use ofits members", that one of the most important
issues is to provide each employee with theopportunities to challenge and grow, anddevelop the environments that enable them tofully exercise their abilities. Along these lines,
we have enriched our off-the-job training (off-JT)
programs by levels and themes.
In FY2020, we held approximate 50
seminars on different levels and themes, with thegoal of improving human skills, problem-solving
abilities, and project management skills.
Our human resource development programs
will be continuously reviewed and improved
through post-training follow-up sessions andverification of effects, in order to ensure that
Hirata and its employees can fully respond to thestakeholders' expectations.

VOICE

Toward creation of technologies with innovative ideas
Yumi Abe, #1 Engineering Department, Kanto Division, #1 Business Unit
The 3-day training course for newly appointed section chiefs guided me throughthe management basics such as "how administrative post and role differ from therank-and-file employees" and "what is management all about", problem solving/
management process, and practical affairs like how to foster subordinates. The
training gave me a clear concept of "what a manager is about" and increased
my awareness as a manager. Discussion in a group of trainees from various
departments allowed me to see the subject from diversified standpoints.
Through this training I learned a lot about manager's key roles, including tohelp subordinates bring out their own ideas, ways of thinking, and strong points
and turn them into resources with flexible mindset and creativity. Making most use of the methods learned from the training, I
am committed to increasing our organization's power and creating technologies with innovative ideas while improving my own
human skills. Also, it's my objective to contribute to Hirata and our society by cultivating excellent engineers with technologicalcompetence.

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11Corporate Social Responsibility Report 2021

Respecting human rights and diversity■ Efforts for Re-employment

Under the "Re-employment System" established in 2006, Hirata Corporation has entered into reemployment agreements with retired employees so
Number of re-employed persons above 60 years old (Unit: persons)that they can continue to apply their skills, utilizing
Re-employment
Re-employed
Fiscal Year
Retired Employees
ApplicantsPersons
their superior knowledge and experience. The number
2016
27
23
23
of workdays and hours is adjusted for each re-hired
2017
17
14
14
person's lifestyle by reflecting his/her wish and the
2018
22
17
17
work contents contracted. According to the Act for
2019
33
25
25
Stabilization etc. of Employment of Older Persons
etc., we are rehiring employees who wish to remain
2020
14
8
8
employed until age 65.

■ Proactive Employment of Disabled Persons

Our disability employment rate in FY2020 was 2.21%,
nearly close to the legal rate 2.3%. We are actively
seeking opportunities to hire persons with disabilities
through participation in disability career fairs and Webbased public relations.

■ Measures Against Harassment

Changes in Employment Ratio of Disabled Persons (%)
（％）

2.5
2.0

2.16％

1.5
1.0

1.36％

1.50％

2.21％

1.63％

We hold compliance training for employees (60
0.5
2016
2017
2018
2019 2020
minutes/training, 12 times a year) and training for newly(Fiscal Year)appointed section chiefs and supervisors (240 minutes/
training, once a year). Both include a training session on how to prevent power harassment or sexual
harassment. Furthermore, starting in FY2018, a 90-minute harassment prevention class is provided byan outside expert for all the employees to increase awareness of harassment in general. With regularquestionnaires to remind harassment prevention and monitor the present situation, we are making
company-wide efforts to ensure a harassment-free, better workplace.

■ Retirement Ceremony

We hold a retirement ceremony in March to commemorate those who are beginning a new phase of life
in retirement. This ceremony is an important opportunity for Hirata to express its appreciation to all thepeople for their years of devoted service to the company. For the retirees, it will mark a start of the newchapter in life, regardless of whether they have chosen to leave or get re-hired.

Work-life Balance

In addition to our continuous commitment to work-life balance improvements including setting orcompensating leave-work-on-time days, we have further decreased the overtime work hours in thespecial clause under Article 36 (Agreement on Overtime) to 75 hours in response to the reform ofworking practices starting on April 2019 which legislates the annual overtime work hours limited to 720
hours. Days on business trip are now managed on the basis of actual time to pay more attention to theemployees' healthcare. With the interval time system in practice, the overtime average for FY2020 has
increased to 26.00 hours, an approximately 4-hour increase from 22.09 hours for FY2019. However,considering the large number of new orders received in FY2020, we recognize this to be a good figure
which shows improvements in our productivity through a variety of programs.
In response to the need for diverse forms of employment, a program has been instituted for
employees to change their work hours as desired on specific days. We will continue to take further
measures to improve the employees' work-life balance.

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12Corporate Social Responsibility Report 2021

VOICE

"Thinking the way to return the favor when
my parenting passes its peak..."Hiromi Sakai, Human Resources Department
I moved back from Tokyo to my hometown Kumamoto and joined Hirata three years ago when my child
was four years old. While many companies have a child-care reduced working hours program recently,
it is limited for a period until the child reaches the 1st or 2nd grade at most companies. But Hirata's
program is available to employees until their child finishes the 3rd grade. In addition to the program,"modified working hours leave-work-on-time days" launched this year, Hirata is planning to introduce
many other programs for better work-life balance. As a matter of fact, I myself have been using the childcare reduced working hours program since the first year at Hirata. This helps my daughter, now in the
2nd grade, have a positive image of working mother. Companies are often unwilling to hire mothers with young children, but not
at Hirata. With many thanks to Hirata's employee-friendly programs, I'm enjoying personal growth both at work and in my private
life, and thinking the way to return the favor when my parenting passes its peak.

Labor Safety and HealthWith the slogan, "All employee participation in zero accidents", Hirata has formed safety and healthcommittees in each plant and a company-wide safety and health committee, which oversees the whole
company, to promote systematic safety and health activities.
With the spreading of COVID-19 infection, the company-wide safety and health committee is held
online, continuously conducting activities including departmental reporting/checking, discussion about
preventive actions, and planning/setting up of safety/health rules, based on the annual plan. The safety
and health committee at each plant is also committed to implementing safety and health patrols, taking
corrective action according to the results of the patrols, and keeping everyone informed of the contents
discussed at the company-wide committee. Our field personnel ensure shop-floor safety through social
distancing and hazard prediction training or KYT (kiken yochi training) at the morning meeting. The safety
patrol by top management is conducted every year during the National Safety Week in July to check on
our factories to protect employees in the management's point of view.
After a single accident with lost workdays occurred in FY2020, we took preventive steps bycommunicating the reviewed work procedures interdepartmentally to all the personnel. We will keepcommitted to achieve "no accidents with lost workdays" with more safety awareness, enhanced KYT, andtighter patrolling.

TOPICS

Fire/disaster drill takes place in the office areaof the Headquarters building
The fire/disaster drill was held first time at the office area in the
Headquarters Building completed in June. Assuming that there wasa fire from the switchboard on the first floor due to an earthquake,the drill was conducted to check if each organization was functioning
properly and the evacuation routes were safe. The drill also provided
hands-on experiences on how to extinguish a fire using the indoor
fire hydrant and transfer the injured on a stretcher, upskilling ourfirefighting/emergency response.

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13Corporate Social Responsibility Report 2021

Related SDGs

Together with Shareholders and Investors

We provide appropriate and timely disclosure of information to our shareholders and investors, with the intent of enhancing IR tools.

IR Activity Policy

Hirata believes that a fair and equal pricing of shares is on the premise that information on investment
decisions are being shared appropriately in a timely manner. Therefore, we recognize the need to fairly,
equally, accurately, and quickly provide the investors with important company information that influences
investment decisions.
In the case of mandatory disclosure materials, such as annual securities reports, quarterly reports
and material facts or other company information, Hirata Corporation discloses the contents thereof
correctly.

■ Financial results briefing and individual interview held via Web and over the phone

With a purpose of publicizing Hirata Corporation and gaining investors, we hold company information
sessions and financial results briefing for institutional investors, analysts, and private investors. Due to
COVID-19, we decided not to hold a briefing for individual investors this year. Instead, our semiyearlyfinancial results briefing and individual meetings for institutional investors and analysts were all provided
via Web and telephone meetings to help them know more about us.

IR Tools

In addition to mandatory disclosure materials, such as annual securities reports and quarterly financial
reports, which are prepared under laws and regulations of financial instrument exchanges, Hirata
works to disclose the following materials on our website to allow shareholders and investors a deeper
understanding of our business.
① Briefing documents for financial results andquarterly financial results
These documents explain the summary of financial
results in each term for an easier understanding
and are used as materials for financial results
briefing for
institutional
investors in the final
and second quarter
financial results.

③ Hirata Report
This report, for shareholders, describes thebusiness content, results,
plans and topics for aneasier understanding and isissued and sent by mail after
the disclosure of the final
and second quarter financial
results.

② Annual shareholders meeting material
These are materials used for explanations at
general meetings of shareholders.

④ "IR Information" on the Hirata Corporation
WebsiteThis page is a collection of information for ourshareholders and investors with the intention ofpromoting understanding of Hirata Corporation.

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14Corporate Social Responsibility Report 2021

Related SDGs

Together with Local Communities

We are diligently engaged in activities that contribute to society in our commitment to be a company rooted in the local community as a good corporate citizen.

Contribution to Local Communities, Providing Support and Cheering for Hometown
Hirata Corporation will work to help the restoration of Kumamoto through the following community
support projects.

■2020 Kyushu floods - volunteering after the disaster
Hirata participated in the community service three times in September 2020 in Kuma-mura, Kuma-gun,
Kumamoto Prefecture hit by torrential rain in July 2020. A total of 32 employees volunteered to help
with disaster relief. Some cleared mud out of a submerged house, somewashed and restored water-damaged documents at anelementary school, and some removed the mass of dirt
at a lumbermill. All of them worked intensely for a limited
amount of time, hoping to be a help. We sincerely hopean earliest possible recovery of the disaster-stricken areas.
■Participation in the stone wall replica
project commemorating Kumamoto Castle
reconstruction
One month after the Kumamoto earthquake,a stone relief of Kannon Deity of Mercy was
discovered on a stone from the collapsed
Replica of the stone relief (right) andstone wall of Kato Shrine on the Kumamoto
Kannon Deity of Mercy (left)
Castle premises. The chief priest of Kato Shrine
President Hirata receiving a citationfrom the chief priest of Kato Shrine
thought if this Kannon stone could be left in some other form to symbolize
the recovery of Kumamoto before it was put back into the stone wall, which led to the launching of thereplica project. Several Kumamoto-based companies worked together for this wonderful project andmade it successful. Hirata took care of 3D modeling and 3D printing of the replica.
■Shareholder Special Benefit Plan, Donation as Support for Restoration of
Kumamoto Castle
Hirata has a shareholder special plan for post-earthquake reconstruction
assistance to Kumamoto.
A shareholder can donate 3,000 yen by choosing either of the followings:
・QUO card with donation for restoration of Kumamoto Castle
・Donation to Kumamoto City as funding for restoration of Kumamoto Castle©2010 Kumamoto Prefecture
By courtesy of 267 shareholders who agreed to the plan as of the end of
Kumamon #K1761
March 2020, a total of 801,000 yen was donated to Kumamoto City for restoration of Kumamoto Castle.
■As a main sponsor of Roasso Kumamoto
We have been a main sponsor of Roasso Kumamoto in the J-League footballleague since 2018. Immediately after the 2016 Kumamoto Earthquake, ourcompany moved from Tokyo back to its hometown Kumamoto with theslogan "born in, grown up in, and thrive in Kumamoto". This Kumamoto spiritof ours is quite resonant with that of Roasso Kumamoto, "Energy to People,
Dream to Children, and Power to Kumamoto". It's Hirata's earnest desire
to help the restoration of Kumamoto by supporting Roasso Kumamoto
together with the people of the local communities.

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15

Corporate Social Responsibility Report 2021

Environmental Report

Related SDGs

Environmental Management

We are working hard to protect the environment to realize a sustainable society.

Environmental Policy

We at Hirata establish environmental policies andpromote environmental activities in line with thepolicies. We will contribute to protect the global
environment by reducing the environmental loadin all aspects of our business activities, products,
and services.

Particulars of Our Environmental Policy
Hirata Corporation contributes to protecting the global
environment by reducing the environmental load of
all aspects of our business activities, products, andservices in order to achieve a sustainable society.
① We lower the environmental load of our products
by considering each phase of product lifecycle
throughout our supply chain from raw material
sourcing to design, production, transportation, use of
product, and disposal after use.
・Making products more energy saving when in use
・Designing and manufacturing products recyclable at
disposal・Reducing the amounts of harmful materials used in
our products and using substitutes② We abide by environmental laws, treaties,
requirements and voluntary standards set as needed.
We also develop coordination and cooperative
relations with relevant government agencies andcontribute to the local society.
③ We strive to improve productivity and conserve theenvironment throughout all our business activities
and production processes, including sales, design,
manufacturing, installation, and after-sales service.
・Reducing energy usage and the emission ofgreenhouse gases
・Reducing waste and promoting recycle
・Reducing harmful materials and using substitutearticle・Preventing environmental problems and pollution
・Preserving biological diversity④ We increase environmental awareness throughimplementing education and publicity programs.

Environmental
Management System■ Promotion framework

We have a structure of promotion organized for
the Environmental Management System (EMS)
led by top management and environmental
management manager and obtained aninternational standard ISO14001 certification
at the Kumamoto, Kanto, and Kansai region
production bases.

■ Renewal audit

Our ISO14001 certification was renewed
following the renewal audit by the certifying
organization amid the COVID-19 pandemic.
Auditors' suggestions and advices will beutilized for further improvements through the
feedback to each department's responsible
person.

Abiding by laws andregulations and preventing
pollution

Our ISO office monitors compliance ofenvironmental laws and regulations throughregular internal audits.
Our factories test the wastewater to ensure
it meets the standards defined in the Water
Pollution Prevention Law and even stringent
effluent regulation of each local government.
Our new factory completed in FY2020 isalso operating properly, with no environmental
violations, incidents, or complaints.

⑤ We review our EMS regularly to enhanceenvironmental performance and striving forcontinuous improvement.

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16Corporate Social Responsibility Report 2021

Environmental Goals○ : achieved, ・・・△ : nearly achieved, ・・・× : unachieved

Medium- to long-term

Item

EvaluFY2020 Accomplishments ation

goals(FY2018-2020)

FY2021 Plans

Reducing CO2
emissions

By the end of 2020, we
will decrease more than
3% of the amount of CO2
emissions compared to thatof FY2017 when measured
based on the actual
production amounts.

CO2 emissions per actual
production reduced by 8%
over FY2017. The energy
inputs per actual production
increased by 23% over
FY2017.

◯

We work toward CO2
emission reduction by
decreasing energy inputs
through replacement toenergy-saving facilities
and tighter energy
management.

Provision of Productswith Reduced
Environmental Load

Development ofenvironment-friendly design(energy saving, space/weight saving, substitutionof harmful materials)

We conducted productassessments to haveachieved energy and space/weight saving products.

○

We continue to conduct
product assessments.

Managing chemical
substances containedin products

Inspection of Chemical
Substances Contained in
Our Products

Broader targets are covered
on new purchases at
estimation by conducting
RoHS compliance survey.

○

We improve the response
rate by expanding
chemSHERPA target partsand reviewing the survey
method.

Environmental Performance

We are pursuing to reduce the environmental load and achieve our environmental goals by understanding theimpact made by our business activities.
■ Totalenergyinput
Total energy
input (Incrude oil equivalent)(kℓ)
Energy consumption unit (kℓ/million yen)
Total energy input (In crude oil equivalent)(kℓ)

Energy consumption unit (kℓ/million yen)
4,205

4,182

4,205

4,182

3,587

3,587

0.066

Amount of water resource input per hundred million JPY
Amountof water resource
input (㎥)actual production(㎥ per hundred
million yen)Amount of water resource input per hundred million JPY
actual production (㎥ per hundred million yen)

4,013

94,3094,013

94,309

2,955

2,955
0.066

■ Amountof water
input
Amount of water
resource resources
input (㎥)

0.060

0.062

0.061

0.060

0.062

0.061

0.074

0.074

148.9

148.9

115.6

115.6

Amount of PRTR Substances per million JPY
Consumption
ofproduction
PRTR Substances(kg) yen)actual painting(kg/million
Amount of PRTR Substances per million JPY
actual painting production (kg/million yen)

8,190

80,70280,702■ Consumption
PRTR Substances
Consumption of PRTRof
Substances(kg)

63,08063,0808,190
58.9
54,374

58.9

109.1

54,374112.8

40,536

109.1

112.8

40,536
74.5

6,681

6,681
40.9

40.9

74.5

5,241

4,384

5,241
27.8

28.2
4,384

27.8

28.2

4,700
31.6
4,700

31.6

FY2016FY2017FY2018FY2019FY2020FY2016FY2017FY2018FY2019FY2020FY2016FY2017FY2018FY2019FY2020FY2016FY2017FY2018FY2019FY2020FY2016FY2017FY2018FY2019FY2020FY2016FY2017FY2018FY2019FY2020■ Amount of CO2 Emissions
CO2 Emissions (t-CO2)
CO2 emission per unit (t-CO2/million yen)
CO2 Emissions (t-CO2)
CO2 emission per unit (t-CO2/million yen)
8,785
8,111
8,785
8,111
6,860
5,797

6,860

0.139

0.139

4,068
0.116

0.119

0.116

0.119

4,068
0.084
0.084

5,797

■ Industrial Wastes
Amount of industrial wastes (t)Amount of industrial wastes target substances per hundred
Amountof industrial
wastes (t)(t/hundred million yen)million JPY
actual production
Amount of industrial wastes target substances per hundred
million JPY actual production (t/hundred million yen)

671

675

671
1.06

675
0.97

1.06

0.107

0.97

0.107

490

381

490
0.85

381
0.79

0.85

0.79

478

* Actual output is used to calculateenergy use and CO2 emission
per unit.
* Figures for Hirata Corporation on
an unconsolidated basis.

478
0.88
0.88

FY2016FY2017FY2018FY2019FY2020FY2016FY2017FY2018FY2019FY2020FY2016FY2017FY2018FY2019FY2020FY2016FY2017FY2018FY2019FY2020

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17Corporate Social Responsibility Report 2021

Related SDGs

Environmental Conservation in Business Activities

We are proactive in measuring and reducing the environmental load throughout the
product lifecycle in design and development, procurement, production, etc.

Environmental Load
Environmental loads in FY2020 are as follows.
● Energy
Electricity
LP gasGasoline
KeroseneLight oil

InputsHirata Corporation Business Activities

15,117K kWh
71t
3t
21t
88t

● Water Resources
Underground water
Clean water

31,986㎥
8,550㎥● Chemical Substances
PRTR substances

4.7t● Design anddevelopment

Outputs● Emissions in the AtmosphereCO2 
5,797t-CO2● Wastes
Industrial wastes
General wastes
Valuable resources

● Procurement

478t
26t
780t

● Chemical Substances (PRTR Substances)
Toluene
3.0t
1,2,4-Trimethylbenzene
0.7t
Xylene0.4t
Others
0.6t● Production
Processing
Coating
Assembly

Environmental Accounting
The below is a status of environmental preservation cost.We categorize these into investment amountand cost concerning the "Environmental Accounting Guidelines" by the Ministry of the Environment.
(Unit: thousand yen)

Item

Major Activities

Cost for preventing pollution

・Maintenance of septic tanks

Global environmental protection ・Installing energy-saving equipment
Business area cost cost
・Leakage control construction
Cost of resource cycle
・Disposal of general and industrial
wastesInvestment

Cost

9,473

12,240226,151

165,676－

32,268

Upstream and downstream costs

・Investigation of chemical substances
contained in products

－

6,968

Administration cost・Maintenance of environmental
management system
・Environmental measurement
・Environmental education－

35,221・Nature conservation; beautification
Social activity cost - Environmental preservation and ・Donations to environmental
improvement
protection groups

34,640

2,267

Total

270,264

254,640

TOPICSGroundwater protection efforts reduce its usageby 80%The Kumamoto plant depends on the groundwater in its operations chiefly for cooling the facilities.
The cooling water after use, once was released as is, is now recycled through a newly installed water
circulation system, drastically reducing the groundwater usage at Kumamoto plant to one fifth of thepeak term.
Water circulation system

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18Corporate Social Responsibility Report 2021

Related SDGs

Environmental Consideration for Products

We produce and develop lifecycle oriented products by understanding their environmental load.

Environmentally-Friendly Products■ ECO Electric DC Conveyor (DC: direct current, AC: alternate current)With every component operated on DC including drive motors and the
peripheral devices, our ECO Electric DC Conveyor saves more energy
than conventional AC conveyors. Thanks to its all-DC transfer line, theECO Electric DC Conveyor no longer needs AC power supply, air devices,
ECO Electric DC Conveyor
driving board, controllers, or inverters, achieving substantial energy saving.
For an AC conveyor, its drive unit needs to be installed outside the conveyor due to the size of its
AC motors. Consequently, this type of conveyors has restrictions including installation space. On the
ECO Electric DC Conveyor, the use of DC brushless motors makes the drive unit compact and storable
inside the frame itself. This has realized success in saving the conveyor footprint, 40% reduction from theconventional company products.
Other advantages are "easy maintainability" where all you have to do is just replace the drive
unit, "simplified layout change" where you just connect the I/O slave to the M12 connector, and"quick startup". Furthermore, the machine can stop safely in case anyone accidentally hits a work intransportation. This feature of "low thrust for safety", in our "human-friendly" production system createdbased on our goods making basics, is one of the points favorably received by many customers.

VOICE

Developing far more energy-conscious products
Yuichiro Ueda, Product Development Department, #1 Business Unit
"Let's make our conveyors more user satisfactory" - this led me to the development of the ECOElectric DC Conveyor. My idea for this goal was an all-DC conveyor using DC brushless motors
in a compact frame that requires less restrictions for layout planning and change.
We struggled with how to cool down the motors. First we used a cooling fan. But the
fan needs regular maintenance to prevent efficiency degradation due to inclusion of dust andforeign materials. Furthermore, water or oil may drip in some use environments, requiring resistance to water and oil. Then, wechanged over to use a heatsink. In this approach, the motor is cooled through heat conduction by an aluminum block on it.
Test after test, we finally found the mechanism capable of efficiently cooling the motor, realizing a maintenance free product.
I'd like to develop products that consist an overall energy saving system by creating more variations of transfer system
units.

Managing chemical substances contained in products

In order to respond to a chemical substance related laws and regulations in Japan and overseas, including
European RoHS Directive (*1) and REACH Regulations (*2), we will strengthen management of chemical
substances contained in our products.
In FY2020, we started RoHS compliance survey on new purchases at estimation. Thanks to suppliers'
cooperation, we were able to further understand the chemical substance inclusion status. The information
submitted by suppliers through chemSHERPA (*3) helped us a lot in the survey of chemical substances
contained in our products. We are continuously working for controlling chemical substances contained in
our products.
* 1: Regulations on chemical substances in EU* 2: Chemical substance management regulations in EU* 3: Format for providing data on chemical substances contained in products in a supply chain

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19

Hirata Corporation

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