CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Social | Improving value

Bolstering our capabilities to propose solutions that satisfy needs
The strength as our foundation
As a general manufacturer of high-performance materials—
polyurethane, rubber, and plastic—we have strength in being
able to leverage technologies and expertise built up over longyears of R&D to perform everything from materials
compositions and compounds to design and processing, allin one place. We also have the ability to conduct manydifferent types of product development that suit various needs
by combining high-performance materials with foaming andmolding technology.

Creating added value
In addition to simply dealing with our customers’ needs, we
also propose additional and improved functionality as weengage in dialogue to learn more about the usage purpose
and applications, problems, and other details. In theautomotive industry where development schedules are clearlyset, we also do what we call “front-loading.” Establishingcontact with the customer early on, we do our best to
propose our own distinctive solutions and communicate thetype of value that we can add.

TOPICS: INOAC R&D Sections
Our R&D is comprised of two sections—the section that develops our own original solutions (INOAC Technical Center Co.,
Ltd.), and the section that develops materials and products closely together with our customers (the Global Technology
Development Division). They propose what they develop to the development and sales sections of our various departments,
get them included in product designs in every industry, commercialize the results, and turn them into products.
INOAC Technical Center Co., Ltd.
Our technical center selects topics with a high degree ofnovelty that go beyond the boundaries of our existing business
entities to develop original future-oriented solutions. Human
resources are also particularly important to making that
happen. Therefore, the center also actively dedicates effort tohuman resources development. For instance, the center
actively organizes study sessions for acquiring high levels of
expertise, including opportunities to learn basic technologies
through industry-academia collaboration.

At a study session

Global Technical DivisionThis division ascertains various industry needs and conducts R&D for materials and products toaddress them. In addition to developing materials, the division also works to establish morein-depth manufacturing (developing production methods) as well as analytical and evaluation
technologies. To acquire the intellectual property rights to the results of these development efforts,
an Intellectual Property Department has been established within the division’s organization. This
group contributes to the creation of both tangible and intangible intellectual property.

Working with the automotive industry
As a company that has strong relationships with automakers,
we are focusing on industry changes such as CASE and
MaaS as priority topics. The shift to electric vehicles requires
functionalities such as weight reduction, sound absorption,
soundproofing, thermal insulation, and heat radiation.
Leveraging our strengths in compounding and foaming
CSR REPORT 2022

INOAC Technical Center Co., Ltd.

Sound-absorbing PUF mold component
containing biomaterials

technologies, we are working dedicatedly to develop productsthat automakers desire. We have also established what wecall a “Production Prep Review Panel” that handles thefunction of checking on the progress of production
preparation. For each item that they review, we strive toimprove our quality by achieving the numerical targets andmaking improvements.
15

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Social | Improving value

Creating enterprise value
Environmental initiatives

Intellectual property strategy

There is increasing demand for environmental considerations
such as the SDGs to counteract the environmental problems
spreading around us. Taking this social landscape into
consideration, we are developing products that help reduce
CO2 emissions and pushing forward with other eco-friendly
initiatives such as recycling activities and reducing resource
usage.
In product development, we launched development withbiomass levels over 50% among other efforts to shift towardplant-based raw materials as we chart a course away fromfossil fuel-based products.
In our recycling efforts, our activities in the field of material
recycling have been ongoing for many years. We are striving
to establish chemical recycling technologies with even higher
recycling rates, choosing the necessary equipment andconsidering the reaction and equipment conditions for eachdifferent material.

As an initiative to acquire patents in product development, wehave set a goal of 300 patent applications per year. In thedevelopment of our flagship products, we are also working tobolster our competitiveness by owning a concentration ofmultiple patents for each individual product.
Overseas, we are expanding the presence of our R&D
sections globally to address needs that must be met quickly. We
are also establishing a support organization in parallel with thisexpansion in order to facilitate smooth local patent applications.

Polyurethane foam

Decomposition
agent

Decomposition

Regenerated polyol
Impurities
Purification

Regenerated
polyolIllustration of the polyurethane foam chemical recycling process
CSR REPORT 2022

Bolstering development capability throughindustry-academia collaboration
We engage in joint development with universities and otherinstitutions, primarily in medium- to long-term basic
development. Taking on new perspectives and mechanisms in
more specialized fields of research enables us to bolster ourdevelopment capability. To manage progress, we hold internalbriefing sessions twice per year to verify the progress anddirection of our research. Through participation in academicpresentations, we are able to further enhance our cutting-edge
technologies while at the same time sharing our researchfindings with society.
One example of our industry-academia collaboration is“flexible aerogel” high performance thermal insulator, a productof joint development efforts with the Research Institute for
Chemical Process Technology at the National Institute ofAdvanced Industrial Science and Technology (AIST). In light ofworld trends such as carbon neutrality and the SDGs in addition
to Japan’s Top Runner Program, demand for energy saving isincreasing and superior high performance thermal insulators are
attracting greater attention. Rigid polyurethane foam andvacuum thermal insulator are well-known conventional thermal
insulators, but they both have issues with molding processability
since they are hard materials. We engaged in this joint research

Patent applications per year
(Applications)

300

280

260

245

237

(Forecast)

2021

2022

(Goal)(Goal)

300(Goal)

200

100
0

2024

2023

2025

in order to solve that problem. Devising a compound of silica
aerogel and fine cell foam, we successfully developed ahigh-performance thermal insulator with superior properties interms of thermal insulation, processability, and aging
performance.
Development of flexible aerogel high performance thermal insulator

Silica aerogel

Fine cell foam
CompoundFlexible aerogel
16

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Social | Improving value

Quality improvement efforts

FY 2022 Quality Policy
1. Practice thorough quality compliance(1) Observing laws (official accreditations & certifications)(2) Quality assurance that meets clients’ requirements

2. Receive quality awards from clients
3. Improve our quality globally(1) Develop local human resources to facilitate global businessexpansion(2) Build an INOAC global standard quality system(3) Improve quality by conducting quality assurance audits ofoverseas business entities* Audit production sites based on an INOAC global standard quality system

4. More robust quality risk management for new and criticalquality products(1) Conduct thorough quality audits for new products and ensure
quality at production launch(2) Thoroughly audit critical quality products (including officiallyaccredited & certified products)

Specific efforts
Auditing observance of official accreditations & certifications
Our products which have received official accreditations or
certifications are registered in the Global Quality Assurance Division
which is in charge of our management system for quality. We verify
whether there are any discrepancies between what is written in theapplications and the corresponding products, production
processes, and related specifications. We also periodically inspect
whether there are any discrepancies between the registeredinformation and the actual products, production processes, andrelated specifications.

For products created using new technologies, new materials, newprocesses or for new usage applications, we strive to prevent
serious quality issues in advance through audits by staff members
including our president to determine whether they are ready formarket launch.

Biomass Mark certification

Audit areas

6. Utilize IoT to streamline, reduce labor, increase precision,and reduce workforce in quality-related work

CoolEco hard cold storage agent
made with biomass plastic(1) Increase reliability by automating test work

7. Increase the reliability of products and production
processes by building measurement control systems

Basic approach
We strive to create satisfactory quality for all of our customers
by thoroughly ensuring quality compliance based on our
Quality Policy and strengthening our quality risk management.
We have implemented a comprehensive management system
based on ISO 9001 to guarantee the quality of products thatcan be used safely with confidence, and to provide products
and services that deliver satisfaction. We are also engaged inefforts to improve quality by collaborating with our customers.
CSR REPORT 2022

Audit members
President, Global Technology Development Division, Global Quality
Assurance Division, persons in charge of technology, quality
assurance, and sales in the applicable departments

Material quality, product characteristics, product performance,
structure, exterior, comparison with similar products, productsafety, production safety, quality risks

5. Prevent critical quality problems in advance by thoroughlymanaging implemented changes(1) Thoroughly manage changes in production processes resulting
from changes to materials or compositions

Quality audit of new products

Product component audit for critical quality
We guide audits of critical quality components at our production
sites in Japan and abroad to prevent any serious quality issues inadvance that could threaten the loss of social trust.

QC group activities
We have been carrying out QC (quality control) group
activities for small groups to voluntarily gather on the topic ofquality improvement since around 1965. These activities havesince expanded worldwide. Starting in fiscal 1985, INOAC has
held the World QC & Improvement Competition on a global
scale in order to share quality control activities taking placethroughout the group of companies.

Managing new materials changes
For materials changes with high risk of serious quality issues, webuild frameworks in which the Global Technology Development
Division and the persons in charge of technology and quality
assurance at the departments in charge deliberate over thechanges, and approval is given by the Global Quality Assurance
Division. We are enhancing our quality risk management by making
our management systems even stronger.

Many of our locations still conducted QC group activities infiscal 2021 even as the problems surrounding the COVID-19
pandemic continued. We spread the message about whatthese activities have achieved by selecting some particularly
outstanding examples of such activities and recording a video
about them. This video featuring eight case examples inJapan and eight overseas was recorded in three languages
was streamed worldwide.
17

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Social | Supply chain management

Supply chain management
From tackling global environmental problems as well as
problems related to human rights and labor to carbon
neutrality initiatives to combat global warming, risk
management against natural disasters, and the pursuit of asustainable society, companies are now expected to engage
in very different activities than they were in the past.
In response to these changes in the surrounding
environment, we are establishing a Basic Policy on
Procurement and Client CSR Guidelines concurrently with therevision of our Code of Conduct.

Basic Procurement Policy(1) Promotion of global procurement activities(2) Observance of laws, social codes, and internal
regulations(3) Promotion of fair, just, and sincere procurement
activities(4) Consideration for the environment and humanrights in procurement(5) Building partnerships based on trust with ourvalued suppliersSpecific efforts

Seeking sustainability in procurement

We engage in various activities through the INOAC
Partnership Assembly with 67 of our valued suppliers.
Teaming up with our clients, we engage in awareness-raising
activities such as lecture presentations on work-style reformand cybersecurity measures, activities to ascertain problems
at worksites, and activities to improve production processes.
Through participation in the QC Improvement Competition topresent results of improvement efforts and other suchactivities, we work toward mutually raising the levels of ourenterprises and achieving benefits for all sides while at thesame time developing human resources.

In order to offer products that are friendly to the environmentand our daily lives, we avoid the use of environmentallyhazardous substances in our manufacturing based on our
INOAC Green Procurement Standards. We also engage inprocurement geared toward achieving carbon neutrality.
Every year we conduct surveys to avoid the usage of conflictminerals linked to human rights abuses and discrimination as
well as raw materials and other substances obtained throughunethical practices such as forced labor.

Assembly to Address Quality Problems
We engage regularly in activities to decide on the appropriate
level of quality together with our clients while looking at theactual products.

* This Basic Procurement Policy is currently being updated

Strengthening partnerships with our valued
suppliers
In addition to conventional specifications such as quality andprice, it is now increasingly important in procurement activities
to work together with clients on efforts such as improving
labor conditions and making considerations for theenvironment. Once we have established our Client CSR
Guidelines which are currently being revised, we hope thatour partners will be receptive and prepared to engage inactivities that lead to mutual prosperity as partners—based on
greater mutual trust than ever.
CSR REPORT 2022

Observing the Subcontract Act
As part of compliance, we create a list of clients we dobusiness with in order to thoroughly ensure our observance of
the Subcontract Act (Act against Delay in Payment of
Subcontract Proceeds, Etc. to Subcontractors), and wevisualize the conditions of transactions with the clients towhom this act applies. In sections that handle purchasing
work, we establish frameworks to ensure ongoing complianceby having individual employees attend Subcontract Act
workshops and make action plans at periodical in-housetraining as part of their skills planning.
Visualizing transaction conditions
For new clients

Supplier Awards
We present awards to those clients who particularly
contributed throughout the year.

When commencing business transactions, we verify whether the
Subcontract Act applies to those transactions. Before beginning
the transaction, we exchange payment conditions (including
offsetting conditions), basic business agreements, and notices ofunit price determination with those clients. We also create lists toenable centralized management of what notifications have been
exchanged with subcontracting clients.

For existing clients
Since the Subcontract Act could become applicable totransactions when terms and conditions are changed, we manage
our ongoing Subcontract Act observance by regularly checking
transaction conditions and updating our lists accordingly.

18

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Social | Communication with society
We take various opportunities to engage in activities that build trust with society and communities.
Considering it our mission as a company to support the growth of children who are our future, we are engaged in educational and developmental activities in Japan and around the world.

Domestic social & community contribution initiatives
Contributing to communities through effective
use of material cutoffs
At Kyushu INOAC Co., Ltd., we are dedicating effort tocommunity contributions through the effective use ofpolyurethane foam material cutoffs manufactured at production
plants. Our production plants host regular workshops forchildren to make polyurethane stamps, squeeze toys,
Christmas wreaths and other fun items out of polyurethane
foam material cutoffs. We also make playground equipment forchildren to enjoy, which we donate to our clients’ on-premises
nursery schools, in addition to organizing “polyurethane parks”
at production plants. All of the playground equipment isplanned and produced in house, from “struck out” numberedbaseball pitching target grids with targets and balls made frompolyurethane foam material cutoffs, to bowling that uses
prototype plastic drink bottles, playground game sets including
polyurethane balls for “tamaire” in which children throw as
many balls into a basket goal as they can, and more. We
actively engage in these activities that prioritize time for social
interaction with people in the communities, which they also
enjoy.

CSR REPORT 2022

Supporting young musicians
As an effort to support young musicians, we held a classicalmusic concert hosted by INOAC Corporation in the Small Hallof the Suntory Hall concert facility in Tokyo. The concert was
performed together with the Tokyo Symphony Chamber
Orchestra to give young musicians an opportunity to perform
in an actual live concert. As part of our efforts to support
culture and the arts, we also allowed free invitations byadvance drawing to offer a chance to enjoy the concert tothose who normally have little exposure to classical music,
and we allowed admission to elementary school ages and up.
The audience felt relaxed and right at home at this concert
held in a relatively small hall, and they were full of praise forthe event afterward.

Providing thermal insulator to an elementary
school in Hakuba
At Hakuba Minami Elementary School in Nagano Prefecture,
we conducted a decarbonization project to reduce heating
usage and CO2 emissions by thermally insulating classrooms
to keep the rooms warm. Adding a thermal insulation designthat did not exist when the elementary school was built, we
believe that lessening impact of changes in the outside
temperature and improving energy efficiency has helped toreduce heating costs in winter, promote health, and boost
motivation for learning. INOAC supported this project andprovided Thermax polyisocyanurate foam thermal insulator
boards which were used. Sixth graders at Hakuba Minami
Elementary School also performed some of the installation
work for the thermal insulation themselves. INOAC willcontinue to actively support similar thermal insulation efforts
by providing our products.

19

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Social | Communication with society

Overseas social & community contribution initiatives
Organizing a traffic safety poster contest

Supporting vaccination programs

Supporting blind children

At Kenjou Industrial Co., Ltd. In Taiwan, we organized a traffic
safety poster contest for children from families of employees.
The contest was held to raise awareness about traffic safety
through an activity that fosters children’s artistic creativity, andparticipants entered a total of 60 posters. Cash prizes wereawarded to three of them as Awards of Excellence and toanother three as runners-up. Since the contest was held
during Taiwan’s rainy season, it helped to heighten traffic
safety awareness in households.

At INOAC Polymer Lanka (Pvt) Ltd. in Sri Lanka, we
supported a vaccination program by the Sri Lanka Ministry of
Health in the Horana BOI Zone. We offered the parking lots of
INOAC Polymer Lanka for use as a COVID-19 vaccination
center. Starting with setting up furnishings such as tables,
chairs, and supplies needed for the vaccinations, we
supported civil servants from the Ministry of Health by giving
guidance to vaccine recipients, providing meals, and more.

For many years, INOAC Interior Systems has been a sponsorof the Penrickton Center that supports blind children. The
Penrickton Center for Blind Children is a non-profit
organization that accommodates children between the agesof one and 12 who are blind and have another additional
disability and provides them with daycare and consultation
services five days per week. INOAC Interior Systems supports
programs designed to encourage their independence invarious facets of everyday life. The Penrickton Center for BlindChildren assists families, children, and specialists throughsupport services, education, and more.

CSR REPORT 2022

20

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Social | Producing an employee-friendly workplace

Diversity & inclusion
Basic approach

Project to promote employment of women

The “many trees of varying character” expressed in our Corporate
Philosophy are the very definition of diversity. Thus, our philosophy
itself could be considered the fundamentals behind our basic policy
on diversity & inclusion. We do business with respect for diversity byemploying and developing people from all walks of life, which includes
operating business overseas and actively enlisting female employees.

We enable female employees to demonstrate their skills andcapabilities, actively seeking out roles for them and creating
environments where they can contribute to the company. In our
General Employer Action Plan which was formulated based on the
Act on Promotion of Women’s Participation and Advancement in the
Workplace, we set three goals including specific numerical values for
current issues, and we are aiming to harness capabilities anddevelop careers in many different departments.
In fiscal 2021 we implemented a new system that makes it easy
to rehire personnel who resigned for personal reasons—such as
parental or caregiving responsibilities or work transfer of theirspouse—and can be immediate contributors once again. We also
conduct follow-up interviews with employees who joined as
experienced professionals and utilize what we learn from them tosolve problems in the workplace.

Global business operations
We began expanding overseas in the 1930s, and we now haveapproximately 70 overseas production plants and business facilitiesin 13 countries. In the process of doing so, we have constructed arobust global network by respecting the various values, practices,and national identities in the places where we do business andestablishing trusting relationships with the people.

Issues

Goals

1

1

Ratio of females
among all INOAC workers

Raise to 20% or higher

22

Ratio of female employees
in sales and technical roles

Raise to15% in sales roles and
7% in technical roles

3

3

Usage rate of managers’
annual paid vacation

Raise toequal usage rate as that ofgeneral employees, 54.8%

Human resource development
Basic approach
At INOAC, we advocate the philosophy that diverse human resources
are the foundation for the continued existence of the company.
Rather than specializing in one particular business, we are an entitythat contributes to society by creating a diverse range of products
and services. By respecting the individuality of each employee who
constructs these products and services, taking quick actions andmaking speedy decisions, we aim to develop human resources
capable of forming a vibrant global team with an abundance ofindividual character.

growth and to develop their subordinates. For employees themselvesto grow as professionals, they need to have dreams and visions. They
must enhance their own market value, fields of specialization, andexpertise. And for them to develop their subordinate humanresources, they need to clarify their subordinates’ targets and goals,
in addition to clarifying a road map and methods for enhancing theirmarket value and standards for their expertise. We aim to establish
human resources development that paves the way to a new era bypresenting a clear vision of the personnel that employees are
expected to become and implementing evaluation systems that
motivate them toward their own development.

Establishing a human resources system thatreflects the times

Global human resource development initiatives

Work-styles have changed along with social changes from Japan's
Showa Era that ended in 1989 and subsequent Heisei era that lasted
until early 2019 into the current Reiwa Era. We now live in an age inwhich employees each determine their own individual path. Our
vision for our new human resources system is to clarify the path andgoals required for all employees to achieve their own professional

In order to develop human resources capable of handling globalizedbusiness, we implement programs that enable an even higher level ofskills acquisition with a focus on younger employees who will drive
our future growth.
In these times of flourishing online interactions and training, theOverseas Trainee System which we launched in 2019 is producing

CSR REPORT 2022

professional growth and realizations that are unattainable in Japan byoffering employees the chance to actually go on-location, experienceand learn the culture and business practices first-hand, and receive
support from the overseas staff members during their work andtraining. Going forward, we are also considering restarting theOverseas Language Study Program which we launched in 2013 but
has been suspended due to the COVID-19 pandemic.

At a meeting during training in North America

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CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Social | Producing an employee-friendly workplace

Promoting work-life balance
We are actively working to support balance between work and family
life, to have an employee-friendly workplace and promote theadvancement of women.

Increasing our rate of annual paid vacation taken
Since fiscal 2021 we have been publishing our company goals andworking toward achieving the Japanese government’s target of atleast 70% usage of annual paid vacation days.

Company goals
All employees take at least 50% of annual paid vacation days inthe fiscal year they are allotted

Description of initiative
Create paid annual paid vacation schedules, communicate in theearly part of each month about the number of days which must be
taken, and post results on the company intranet.

Reduced work hours for childcare
Our reduced work hours for childcare had previously applied to
employees raising children up to third graders in elementary school
and allowed them to work reduced hours (six-hour days) for up to
three years. However, in fiscal 2022 we changed the applicability toinclude children up to sixth graders in elementary school andremoved the three-year restriction on duration.

Other support systems to balance work and childcare(year enacted)• Paternity leave (before 1980)• Flextime system (1990)• Regulations regarding family care leave (1990)• Happy Holiday Leave (1991)• Regulations regarding childcare leave (1992)• Regulations regarding measures for maternity health management(1998)• System for paid half days off (2000)• Family support holiday leave (2005)• Sick/injured childcare leave (2005)• Amended regulations regarding childcare leave (leave period
extension) (2005)• Family Care Leave (2010)• Regulations regarding telecommuting (2020)

Human rights

Health management

Basic approach

Basic approach

We respect the Universal Declaration of Human Rights andinternationally recognized fundamental rights of workers, and we
dedicate effort to respecting human rights without being complicit inany human rights violations such as forced labor or child labor. We
also strive to create safe, comfortable workplace environments andare engaged in making improvements to that effect throughout ourcompany by implementing measures against long work hours,
workplace harassment, and more.

In the past, employees were considered to be responsible formanaging their own health individually. However, the idea that thecompany is responsible for establishing environments where
employees can be physically and mentally healthy at work has now
become pervasive. Improving workplace environments andpromoting health make individual employees feel more motivated fortheir work, which in turn makes the workplace livelier as a whole.
With all three parties—the company, employees, and healthinsurance society—working closely together, we aim to mitigate
health risks, prevent injuries and illnesses before they occur, andbalance the business of the company with the health management of
its employees.

Guidance in rectifying long work hours
For those who have worked long hours and employees deemed tohave health concerns, we follow the guidance of industrial physicians
and take actions including having the applicable employees receive
interview-style guidance and undergo regular or comprehensive
health checkups. Additionally, when employees are deemed to haveaccumulated fatigue from working long hours, we take theappropriate steps as a company such as providing guidance fromindustrial physicians about the necessary measures to maintain theirhealth once requested by the employees.

Measures against harassment
Workplace harassment is socially unacceptable behavior thatwrongfully harms employees’ dignity. At the same time, we also
consider it a disturbance that prevents employees from harnessing
their capabilities, interferes with order and performance of duties in
the workplace, and can impact our social reputation.
We have declared zero tolerance for any type of harassment,
whether expressed verbally or by attitude, or via email, the internet, orother means, and we are making committed efforts to prevent it. In
addition, we administer an annual Power Harassment Questionnaire
for all employees, establish internal reporting systems, and organize
workshops for managers.

Health promotion initiatives
We are formulating annual schedules for the company as a whole
which include priority action items for each month. At each businessfacility, we are establishing promotion organizations, formulating
Mental Health Promotion Plans, and carrying these out. Working
together with the health insurance society, we are also promoting
employee health based on our “Three Pillars.”Three Pillars▶ Prevent illnesses before they occur

For each individual employee to be healthy and thrive for longer, it isimportant to regularly prevent illnesses before they occur as opposed
to only getting treatment after becoming ill. We provide assistance for
employees to stay healthy, including subsidies for comprehensive
health checkup costs, mental health courses, stress checks, andmore.
▶ Specific health checkups

These health checkups identify those who require health guidancefor preventing lifestyle-related diseases. For health checkup
categories, we use examination categories that can accurately
identify those who require specific health guidance, which includes
the addition of waist measurements to observe buildup of visceral fat.
▶ Specific health guidance

Those who have been identified in specific health checkups create
action plans based on guidance received from doctors, healthnurses, and registered dietitians, and make efforts to improve theirlifestyle habits.

* Flextime was changed from “with core time” to “no core time” on April 1, 2020.

CSR REPORT 2022

22

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Social | Producing an employee-friendly workplace

Safety and health / Disaster prevention
Principles and basic policy for safety

All INOAC Safety and Health Committee
meetings(1) Safety is the basis of the very existence of the company.
(2) All accidents and hazards are preventable.
(3) Safety is achieved through the awareness andresponsible actions of each employee.

As safety activities led by top management and attended by
all employees, we hold safety meetings to increase
company-wide awareness of safety, health, and disasterprevention, build organizational culture, and prevent therecurrence of accidents.
 Central Safety and Health Committee meetings: Heldfour times per year Field inspections by officers: Held twice per year Safety Practitioners Conference: Held four times per year Safety conferences: Held once per year
 Organizing safety presentations by outside instructors:
Held once per year Safety and Health Committee meeting at each location:
Held monthly

Based on the safety principles, we prioritize safety above all—and
this is demonstrated through action. When a risk becomes known,
our established practice is to “stop it, call it in, and wait.” Our yearly
activity plans include activities organized by the Ministry of Health,Labour and Welfare and monthly activities that past disasters havetaught us to be of critical importance. We strive to improve the safety,
health, and disaster prevention levels at all of our locations byconducting repeated training and improving any weaknesses we findin our safety, health, and disaster prevention assessments.

KPIs• Total employee occupational
accidents (including no lost
worktime)• Total accident frequency rate
• Total lost-worktime accident
frequency rate
-30% from previous year

• Severe employee
occupational accidents 0• Fires at businessfacilities 0• Having no more administrativeclassification III work
environments at worksites

Applicable
scope

2021
result22
Field safety inspection by top management

Japan

1.68
0.76

Overseas

16

Japan

0

Overseas

0

Japan

0

Overseas

0Japan

6 worksites

Developing safety-conscious workers
with the Safety Dojo
The Safety Dojo lets employees experience potential work
hazards in safe settings using 15 simulators that enable
them to see, hear, and feel the hazards. The experience
helps to build workplaces capable of achieving thezero-disaster standard by making employees more sensitive
to potential hazards, training their ability to predict them,and building habits in safe work practices. We also
introduced a virtual
reality (VR) systemand bring VR
equipment to eachlocation for on-site
interactive safety
training.
Safety Dojo

CSR REPORT 2022

Initiatives for healthier environments
Managers are improving their skills andknowledge through initiatives that enable them tolead by example.
 Establishing outdoor smoking space to ensure
separation of smoking areas
Heat insulating pavement
 Taking environmental measures to reduce road(reducing road surface temperaturesurface temperature and lowering temperaturesby reflecting infrared rays)
inside plants via the Thermax ceiling cover method,
thermal insulation for furnaces, and more
 Organizing learning sessions and trainings byindustrial physicians and the health insurance
society Taking measures against heatstroke and extreme
heat, creating Wet Bulb Globe Temperature (WBGT)
Thermal insulation for furnaces
visualizations, and systematically improving
workplace environments
 Improving work environments and having no moreadministrative classification III (noise, organic &specified chemical substances, etc.) worksites
 Measures to prevent the spread of COVID-19• Implementing body temperature checking systems
at entrances
Body temperature checking• Arranging partitions in meeting rooms andsystem at entrances
discussion areas• Allocating CO2 measurement devices, air purifiers, and sanitizer liquid

Disaster prevention activities
We take action according to our Crisis Management Regulations to minimize
damage by natural and other disasters, execute accurate first responses, andensure early recovery.
 Large earthquakes• Measures to alleviate earthquake damage to buildings and facilities• Safety and disaster prevention equipment and stockpiles for earthquakes• Post-earthquake response• Stockpile of mattresses and other items to contribute to the community
 Measures against fires, storms, and floods• Prevention of fires and explosions at production sites• Preparedness and systems for dealing with storm and flood damage• Establishment of a weather information distribution system
 Disaster prevention education• Utilizing the Disaster Prevention Training Center andperforming disaster prevention training at worksites
 Disaster prevention agreements with local communities• Providing supplies such as water and mattresses
when disasters occur• Organizing disaster prevention events and participating
in disaster prevention training together with local
communities
Disaster Prevention Training Center23