TOLI Corporation CSR Report 2022

5-125, Higashi-Arioka, Itami City, Hyogo
Prefecture, Japan 664-8610

https://www.toli.co.jp
https://toli-overseas.com/
This report is also available in the below website.

https://toli-overseas.com/

For Further Information
Global Department: +81-3-5403-2078

Profile

SMILE with TOLI interior

CONTENTS
1 Profile
3 History and Group

Business Introduction

5 Value Chain
7 Message from the
President

9 Long-Term Vision and

Mid-Term Business Plan

11 CSR Initiatives
13 Materiality

15 Environment
15 Global Environment
19 Environmental Accounting
20 Information Disclosure andResponse Based on TCFD
Recommendations

22 Social Initiatives
22 Human Rights
23 Employment and Labor

such. They are based on the past fact and current accessible information and subject tochange due to future economical condition, external factors around TOLI and such.

Company Information................ TOLI discloses the company profile in “COMPANY”, and management information in“NEWS & EVENT” in website.
Company Profile
https://toli-overseas.com/profile/
INVESTOR RELATIONS https://toli-overseas.com/financial/

Corporate Data (as of 23rd June 2022)

26 Quality

Registered company name ....... TOLI Corporation
Established ............................................... 1st December 1919
Paid-in Capital ...................................... JPY6,855 million
Headquarters ......................................... 5-125, Higashi-Arioka,
Itami City, Hyogo
Prefecture, JapanTokyo Head Office ............................ 2-10-4, HigashiShinbashi, Minato-ku,
Tokyo, Japan

29 Governance
32 Board of Directors
33 Financial/Non-financial Data

TO L I C S R R e po r t 2022

Some information are not from this period.

Photographs.......................................... Some photographs are not from this period.
Referred guideline. ........................ ISO26000
Date of issue.......................................... October 2022
Special notes on forecast. ....... T his report contains a lot of information including future plan, strategy, forecast and

25 Business Activities

28 Social Contribution

1

Editorial Policy..................................... To report TOLI Group’s basic approach and specific initiatives for CSR to all stakeholders.
Period............................................................ From April 2021 to March 2022

Factories ................ Itami, Atsugi
Showrooms ......... Sapporo, Tokyo, Nagoya, Osaka, Okayama,
Takamatsu, Fukuoka
Sales Offices ....... Sapporo, Sendai, Morioka, Koriyama, Niigata,
Nagano, Tokyo, Omiya, Chiba, Mito, Hachioji,
Yokohama, Nagoya, Shizuoka, Kanazawa,
Osaka, Kyoto, Kobe, Okayama, Hiroshima,
Takamatsu, Matsuyama, Fukuoka, Kitakyushu,
Kagoshima, Okinawa

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2

Histor y and Group Business Introduction

History of TOLI Group

1984 2019 Era of “Development”

1919 1983 Era of “Creation”

2020

Era of “Will”

1919

1971

1973

1991

2000

2007

2019

2021

TOYO Linoleum established

Registered “TOLI”
as a trademark

Set brand message“よろこびを敷きつめる”

Changed company
name to “TOLICorporation”

Announcement of“TOLI Eco Spirit”

Total sales volume ofcarpet tile exceeded
100 million m2

100th
anniversary of
TOLI

Set long-term vision <TOLI VISION 2030>
Mid-term business plan “SHINKA Plus ONE” started

1977

1920

Produced and launched the first made-in-Japan linoleum

Vinyl
Flooring

1963
Vinyl composition tile
“Matico V“ launched
Wide selection of colors
The flooring material that“decorated”
Japan's higheconomical
growthStopped the production oflinoleum1972

Launched the first made-in-Japan
cushion floor “CF Sheet”
In addition to cushioning performance,sound insulation performance is wellreceived in not only residences but also offices and retails.

1977

Heterogeneous vinyl sheet “Floorleum” launchedWork as an alternative for linoleum,
fit in various interior spaces

2012

No wax vinyl flooring
Branding of “NW Series”
Offer new value to the market as“No need to apply wax for
maintenance”.

2018

Homogeneous vinyl sheet“HITOE Granza” “HITOE Fine” launched
Produced the first made-in-Japanhomogeneous vinyl sheet

Product Business
Vinyl Flooring
Vinyl Flooring is used on the surface of floor
in building. It is one of the core building
materials for daily life. We support various
lifestyles from underfoot by making full useof the functionality and design which is
unique to vinyl flooring.

CarpetCarpet1967

Needle punch carpet“O.I.C.” launched
Expand the business to textile flooringmarket as “The Third Flooring”.

1970
Broadloom carpet “Grace” launched
Highly durable carpet, perform its
quality at a bowling alley, office and
such

1982

Carpet tile
Grand Art “GA-100” launchedMarket expansion
with the progress ofoffice automation
Hold a top market
share

Curtain1984

TOLI curtain “VOL.1” launched
TOLI’s first made-to-ordercurtain sample book

1985

TOLI Curtain“Contract curtain” launched
Sample book for healthcare
and education facilities

2000

Graphic carpet tile
“GX series” launched
Evolve the design of carpet tile

2006

New size of GX series“VARY series” launched
Propose a style of interior space creation that
freely designs floors by combining squares andrectangles

1998

TOLI Curtain“The Lyon Textile Museum
series” launched
Reprinted the pattern ascurtain fabrics that is
carefully selected fromthe collection of the Lyon
Textile Museum, known
as the “crystal of French
beauty.”Carpets are widely used from offices toaccommodations. Carpet tile, proud with
top market share in Japan, has many yearsof performance with trusted quality andhigh design. It can be used to decorate
various types of interior spaces.

Curtain
Curtain is the key to create beautiful andcomfortable space. Our curtains are sewed
in our own factory from scratch and custom
made to fit customers’ daily life usage.

2019

TOLI Curtain“fuful” launched
The sample book thatoffer the enjoymentof choosing interior
fabrics with theconcept of “enjoyable
to choose!”

Wall Covering
Wall covering performs to create
comfortable and spacious area with tons ofdesign. Also, it has multi functions such as
anti-stain, anti-bacterial, and antiviral. It cancontribute to create safe environment.

Interior Wholesale and Installation BusinessWallcovering

1986

Wallpaper “Vajradum”
launched
TOLI’s first wall covering
made of paper, for the eraof total interior coordination

1992

Comprehensive sample book “TOLI Wall Grand”
Colors and textures for relaxing homeenvironment. Offer higher quality basic
atmosphere.

3

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2003

Wallpaper “Earthwall” launched
Containing diatomaceous earth on the surface,achieved to produce wallpaper with deodorant,
humid-adjustment, and breathable performance

2005

High designed, fire resistant wallpaper “Real Deco”
launched
Fire resistant wall finish that achieves to express
the texture of natural material realistically

The interior wholesale and installation business is doing supply and install for various
types of interior materials mainly TOLI’s, from each area’s sales office to the clients.
Many interior materials are completed with skills of installers. Therefore, our Group’s
expertise of “Installation” plays a key role in this industry of Japan. In order tomaximize the value of interiors, our Group’s strength is its integrated business modelfrom manufacturing to sales and installation.
Group sales and installation companies• Hokkaido TOLI Corporation• LIC• TOLI (Shanghai) Corporation• Techno Kamei Corporation• KIRONYT O L I C S R R e p o r t 2022

4

Value Chain

Value Chain and TOLI’s Strengths
TOLI Group with Numbers
Our Group’s strength is integrated service based on a century history. We have been accumulating “Trust andTechnology”, implementing the plan, design, production, sales, logistic, installation, and follow-up as TOLI Group,
matching various kinds of needs.

TOLI Group Management Philosophy

We, in response to the Trust in our business, will keep
creating new value that contributes to the creationof the positive space and environment for the people
in the world.

Business activities with more than century history

Consolidated

Established at(264 female employees
on a non-consolidated basis)

As of the end of June 2022

Accumulated technology performance and designs

Specialized staff supporting manufacturingIntellectual Property Rights

Technology
development staffs
for vinyl flooring
and carpet(Patents, design rights, trademarks)

Fundamental research andtechnology development• Listen to customers• Respond to needs anddifficulties• Extensive knowledge andexperience as a manufacturer

After-sales service• Technical guidance basedon abundant knowledge• Advanced installation skill• Make full use of accumulated
technology seeds(experience)

Installation• Extensive sales network basedon trust from customers• Proposal skill for total interior• Gather the trend
information and develop• Proposal of total interior
spacesMarketing
Design development

Raw material
procurement

Sales and logistics• Variety of raw material
procurement resources• Procure recycled raw
material

Manufacturing technology
Inventory• Manufacture with safety and reliability• Shorten the lead time and supply stably

OutputInterior WholesaleandInstallation Business

Product
Business
Vinyl Flooring

CarpetCurtain

Wall Covering

800

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40

59

Investment for technology

Vinyl flooring and carpet tile production capability

Invested amount

Carpet tile
Production volume

As of the end of March 2022

Approx. JPY

3.8 billion

Vinyl tile
Production volume

Approx.

13 million m /year
2

Approx.

9 million m /year
2

Approx.

9 million m/year

FY2021, as a Group

Vinyl Sheet
Production volume

Variety of products

Develop green products

Number of items

Number of environmental
friendly products

Approx.

Approx.

7,300

3,500

Contained in TOLI general catalogue, as of the end of September 2022

Contained in TOLI general catalogue, as of the end of September 2022

Strong domestic sales network

Overseas sales network

Number of customers

Overseas distributors

Approx.

370

companies

20

countries
and regions

27

companies

Distributors and agents

As of the end of August 2022

Sales offices, logistic network

Solid financial baseDomestic sales
office*Equity ratio

42* Non-consolidated

5In-house designer

As of the end of March 2022

Approx.

Value Chain

Non-consolidated

1,891 900

1919

TOLI Group Value• We build our credibility through “Reliable Quality and Technology”.
• We keep the co-creation spirit through “Product Developmentfrom the Customer’s Standpoint”.
• We aim to “Evolve from Global Perspectives”.

Number of employees

Domestic logistic
center13

47.5 %

As of the end of March 2022

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6

Message from the President

Positioning of CSR Activities
in the Mid-Term Business PlanTOLI Group will keep creating new valuethat contributes to the creation of
the positive space and environment

Challenge to the drastic business conditionchanges, implement each initiative one byone.

disposed. Today, we are reusing vinyl sheets for
agricultural purposes and such for recycled material ofvinyl flooring. We are working to reduce in-plant waste
using carpet tile recycling plants, collect wastages fromthe market proactively, and develop environmentally

mid-term business plan “SHINKA Plus ONE” toward

friendly products. We will make steady progress in our

the long-term vision <TOLI VISION 2030> was abusiness activities that lead to global environmental

difficult year, including the prolonged COVID-19

preservation, with our corporate identity being

pandemic as well as global supply chain disruptions

environmentally friendly since our establishment.
Efforts to protect the global environment toward

circumstances, we regard corporate social

the future, such as the climate change response issues

responsibilities (CSR) as our top priority to work on therelated to energy measures in various countries aroundfirst. Specifically, we are focusing our efforts on

the world, have just begun. Challenges toward carbon

Our group started the operation in 1919, as a firstenhancing social sustainability through manufacturing,neutrality, which will advance toward 2050, require

manufacturer of linoleum in oriental region.

including the expansion of carpet tile complete

initiatives and technological innovation from a variety

Since then, we have been driving our business activities

recycling and the full-scale operation of in-house spunof perspectives. We will actively take up the challenge

in order to create positive interior space. We have beensolution dyed yarn facilities for carpet tile.

with our belief that we can acquire “Future Growth

Evolution to a Lifestyle Design Company

offering new values, expanding our business segments“Integrate the resolution of social issues intoand Reliability” only by repeating trial and error andwith products such as vinyl flooring, carpet, curtain,

business activities”, which is the key of CSR activities is

working with a forward-looking attitude to innovation.

and wall covering. In recent years, a chaotic situation

not carried out by a specific department or person

In order to achieve that, it is important that eachin the world makes us difficult to forecast. The

only. We will strengthen our organizational driving

employee constantly needs to be able to identify eachbusiness environment has been changing much faster

force that leads to solutions while sharing awarenessissue and have a sense of ownership. We will strive tothan we have experienced, like climate change,of problems, respecting the accumulation of small

improve sustainability by making steady step-by-steppandemic, and higher geopolitical risk. In order tothings, such as a proposal system from employees.

progress as a Group.
Our first priority is to contribute to a hopefulcontribute to the realization of the sustainable society
through our interior business, we have set the ideal

Initiatives for the achievement ofsocial sustainability

situation for 2030 as <TOLI VISION 2030>“~Evolution
to a Lifestyle Design Company~”. With the legacy andVersatile initiatives and innovations toward“Future Growth and Reliability”

accumulated reliability of more than a century history,
we will keep offering pleasant lifestyle to the world bycreating essential new values.

impact are positioned as the most important initiative.

in “real value”, we have decided to focus on improving

We recognize that our business activities that lead toour company’s value centering “human”, promoting

global environmental protection are our responsibility

long-term vision, we will implement the mid-term

Motohiro Nagashima
President andRepresentative Director

as a manufacturing company, and we will further

CSR Report. We will strive for a group-wide CSR
program to gain the further reliability from all.

Motohiro Nagashima
President andRepresentative Director

improve our accumulated technologies and know-how.

management plan phase by phase. We will connect

The key management indicators of these efforts are

our Group’s evolving to the realization of sustainable

the improvement of the recycling rate and thesociety, balancing enlargement of our economical

reduction of industrial waste emissions in our businessvalue in the business and our social value.

activities. The origin of our foundation,135 years ago

TO L I C S R R e po r t 2022

activities, and our various efforts are reported in TOLI

society, our Group efforts to reduce environmental

SHINKA (Evolution, Deepening, Real value). Especiallysocial contribution activities. For the achievement of

future for all stakeholders involved in our businessAmong CSR activities aimed at realizing a sustainable

In <TOLI VISION 2030>, we set 3 basic policies of7made by recycling rice straw, which had been largely

The first fiscal year (FY2021) of the first phase and theand hike of raw material prices. Even under such
For our ideal situation in 2030

(1887), is the production of “Yutaka Fabric,” which is

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8

Long-Term Vision and Mid-Term Business Plan

TO L I V IS ION 2030
Evolution to a Lifestyle Design Company
Key Progress Reports under the Mid-Term Business Plan “SHINKA Plus ONE”
Growing Image to Achieve Long-Term Vision

Key strategies A: Reinforcement of core business

2021

2030

A-(1) Strengthen “Manufacturing ability”

Improvement of corporate value

Stage

Mid-Term Business Plan
Phase II

Phase III2024 to 2026

2027 to 2029

As one measure to strengthen the supply chain, we are promoting efforts to internalize upstream technologies. In FY2021,
we began full-scale operation of a spinning facility for solution dyed nylon used in carpet tile, and started using our yarn in
our flagship products. We will continue to strengthen our efforts for further technological innovation and stable supply of
products. (P.25)

Expandbusiness domain

Economic value

Key strategies B: Expanding the growth of promising business
Improve the value provided

B-(5) Develop B-to-B (special sales) business

Strengthen business baseIn order to develop new markets, the “Connect Mat”, a floor mat exclusively for volleyball games, which was jointly
developed with the Japan Volleyball League Organization (hereinafter referred to as the V-League Organization), was usedin some of the “2021-22 V.LEAGUE” games. It can be quickly laid and repeatedly used in gymnasiums, and was highly
evaluated by the supervisors and athletes of the various teams. It was also appointed to be used in 2022-23 V. LEAGUE,
which began in October 2022. In the future, we will focus on recycling this to new flooring materials after the season ends,
and will also contribute to the sustainable efforts of the V-league Organization.

Harmony with society
Contribute to society by resolvingsocial issues

KPI

Social value
Targets under SHINKA Plus ONE

Targets to achieve during Phase II – III

Consolidated sales:
95 billion yen or more
Consolidated operating income:3 billion yen or more

Consolidated net sales:
Consolidated operating income:100 billion yen or more
6 billion yen or more
Key strategies C: Creation of a fifth businessC-(7) Pursue creation using seeds and collaboration
To achieve sustainable growth, it is essential to create a fifth business after vinyl flooring, carpet, wall finishing, and curtain.
We have been researching a variety of themes through industry-academia and industry collaborations. Neither theme canbe achieved independently, and we will link our technology with external technologies and ideas to improve the level ofexisting products and create new values. Even if it is a small success, we will accumulate successful cases and lead them tothe creation of the fifth business.

Mid-Term Business Plan “SHINKA Plus ONE”
Key strategies(1) 〜 (11) Activity Themes

D: Enhancementof capabilities
across the Group(8) Integrate theresolution of social
issues into businessactivities(9) Strongly
promote digitalcommunication

Achievement of Long-Term Vision

A: Reinforcementof core business

B : Expanding
the growth ofpromising business(1) Strengthen“Manufacturing
ability”(4) Expand global
business in terms of
quality and volume(2) Strengthen“Planning & Proposal
ability”(5) Develop B-to-B(special sales)business(3) Strengthen“Selling ability”(6) Develop B-to-C
business(10) Revitalize people and organizations(11) Improve corporate value

E: Building a business base that supports growth

9

TO L I C S R R e po r t 2022

Key strategies D: Enhancement of capabilities across the GroupC : Creation ofa fifth business(7) Pursue creation
using seeds andcollaboration

Strengthening business-promotion power

A〜E

Recyclingused carpet tile

D-(8) Integrate the resolution of social issues
into business activities
Our Group has been working to recycle own products in order torealize a recycling-oriented society. In FY2021, we developed atechnology to recycle 100% of used carpet tile and began a full-scale
operation of TOLI Complete Recycling. (P.17)

TOLI Complete
Recycling

Collecting
used carpet tile

Producingeco-friendly carpet
tile

TOLI Complete Recycling

Key strategies E: Building a business base that supports growth

E-(10) Revitalize people and organizations
In FY2020, we started “NexT Project”, a proposal based activity aiming at enhancement of employees’ engagement.
3 proposal have already been made to management through these project activities. Recategorization of homogeneous
vinyl tile products in FY2022 was a proposal from “NexT project”. These series was reborn as attractive categories from a
new perspective. (P.24)

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CSR Initiatives

CSR Management
Approach to CSR

Process of Identifying Materiality

We regard “trust” with our various stakeholders, which has been built over a century of history, as the most important assetof the company. We are promoting social responsibility initiatives such as compliance, governance, global environmental
conservation, and quality control.
In particular, as a responsibility of a manufacturing company, we aim to contribute to the creation of positive space andenvironment for people in the world by refining a variety of technologies that contribute to society, including the reduction ofenvironmental impact, and promoting business activities based on reliable world-class quality and technology.
We will continue to strive to be a company trusted by all stakeholders, working on initiatives toward “Integrating solvingsocial issues and business activities” and contributing to the creation of a society capable of sustainable development.

Materiality is an important issue that we prioritize in our efforts to achieve a sustainable society by not only expanding
economic value but also achieving compatibility with the expansion of social value. Through our business activities, we willbuild relationships of trust with our stakeholders and aim to achieve these important issues.

STEP-1

STEP-2

STEP-3

STEP-4

Review based on
the framework

Identification ofimportant issues
and Identificationof important issues
and progresses

Judgement ofimportanceApproval of theboard of directors

Verify the direction of CSR
basic policy and initiatives
based on frameworks suchas ISO26000

Review important issues foreach CSR policy based on
the management philosophy
and code of conduct, andidentify any issues that are
insufficient

Evaluate key issues based on“importance for society”
and “importance for TOLI”

Resolve the adequacy ofmateriality at the board after
analyses by CSR executive
committee and CSR committee

CSR Policy
Global Environment................... Recognizing that global environmental conservation is an important issue forall human beings, we will work to reduce the environmental impact of ourbusiness activities and aim to contribute to a sustainable society.

GlobalEnvironment

Human Rights............................. Recognizing the importance of all human rights, we practice respect forhuman rights in our business activities.

SocialContribution

Human
RightsEmployment and Labor............ We aim to create and secure jobs and create a safe and pleasant working
environment.

Business Activities...................... We will promote fair and equal business activities and aim to build better

relationships of trust with all stakeholders.

Corporate
Governance

Quality.......................................... We will promote manufacturing from the customer’s perspective based on

Qualityreliable quality and technology, and aim to provide safe and secure products
and services.

Social Contribution.................... We aim to contribute to the development of society by promoting morevoluntary activities toward the goal of achieving a better society.

Corporate Governance.............. Recognizing the importance of corporate ethics, we aim to achieve soundBusiness
Activities

and highly transparent corporate management by actively promoting thecreation of systems to ensure the effectiveness of governance.

STEP-3
CSR Policy• Global Environment • Human Rights • Employment and Labor• Business Activities • Quality • Social Contribution • Corporate GovernanceImportance to Society

CSR Promotion System
In order to enhance our CSR activities, we have set the structure as follows; CSR Committee (The chairman is the president)
and CSR Executive Committee which covers actual activities. CSR Executive Committee is organized by executive officers ofsales, manufacturing, and administration. In addition, in April 2022, we appointed one Climate Change Response ProjectManager from a member of CSR Committee in order to strengthen the Group’s measures to cope with climate change.

Materiality Mapping

Very important

Employment
and
Labor

 romote reduction of greenhouse gas•Pemissions and energy saving
 orporate activities considering safety and•Csecurity

Materiality•P romoting health management andimproving the working environmentell-planned training programs•W•  Promoting work-life balance•P rotection and utilization of intellectual
property rights
 ompliance with fair transactions•C

Management Meeting

Very important

Importance for TOLIThe CSR Committee
Role:
Formulation of basic policy, system construction, target
approval, activity overview, risk management overview,
approval of critical issues (materiality), approval of disclosureof annual activity results, etc.

The CSR Executive Committee
Committee: 1 each of executive
officer of manufacturing, sales,
administration headquarters*The Board of Directors nominates 1 executive
officer to be responsible for implementing
CSR.

Role:
Formulation of measures related to system development andconstruction, formulation of activity plans and targets,monitoring and checking of activity status, set critical issues(materiality), formulation of disclosures of annual activity results,
reporting to and upgrading to CSR board, etc.

• Respect of human rights• Promoting diversity management

Board of Directors

Chairman: P resident andRepresentative Director
Member: Director (internal)
Observer: Auditor (internal)•P romoting reduction of industrial waste,resource conservation/promotion ofrecycling

Secretariat
Management planningdepartment,
CSR promotion department
Role:
Review the matters to be discussed,
preparation and distribution ofmaterials, progress of proceedings,
preparation and storage of minutes,
etc.

• S trengthen supply chain•P roviding and disclosing appropriate
information• Upgrading quality assurance systems• Enhance customer satisfaction level• Early detection, resolve,
and prevention of humanrights infringement• Securing rights at work
• To secure employment• Guarantee of proper
working conditions• Elimination of fraud• Appropriate accounting• Cooperation andcollaboration withgovernment• Support for high quality
installation• Support for maintenance• Ensuring safety of
information security• Contribution to Industry
Development and Promotion• Contributing to Industrial
Development• Job creation rooted in theregion• Medical assistance todeveloping countries• Have more opportunities tocommunicate with stakeholders• Contribution to the development of
culture, sports, and education• Supporting and Participating in Local
Communities• Contributing to the Conservation ofMarine Resources• Strengthening Sound Governance• Enrich the Contents of Information
Disclosure• Thorough Compliance

Various divisions and meeting bodies

11

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12

Materiality

Materiality and Achievement/ProgressESG

CSR Policy

Environment•	Global

Environment

Materiality•	Employment

and Labor•	Business

Activities• Quality•	Social

Contribution

Governance•	Corporate

Governance

13

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Targets (as of the end of FY2021)

Achievement and Progress (FY2021)• Recycling rate 73.0%• Industrial waste output +0%(compared to FY2019)

Promoting Reduction ofIndustrial Waste, Resource
Conservation/Promotion of
Recycling• Promoting Recycling in Business Activities
Improving Recycling Rates• Reduction of Industrial Waste in Business Activities

Promote Reduction ofGreenhouse Gas Emissions
and Energy Saving• Promote Reduction of Greenhouse Gas Emissions andEnergy Saving Throughout the Supply Chain• Development and supplying of eco-friendly products andservices

By FY2030• Scope 1,2 reduce 30%(compared to FY2020)• Scope 1,2 7.2% increase(compared to FY2020)

Corporate Activities
Considering Safety andSecurity• Consideration for the indoor air environment• Promoting Environmental Globalization• Promote the collection of information on domestic andoverseas chemical substances and prompt response• Understanding and responding to domestic and overseas
regulatory trends• Maintain ISO14001 certification in FY2021• Applied for ECOLEAF certification for carpet tile using eco
friendly backing “Sustive Back”• Survey on actual conditions by questionnaires to suppliers• Continue to update interview manual• Implementation of interviews with major suppliers• Renewal of interview manual• Elimination of human right infringement in the course of raw

material procurement• Set interview manuals

Promoting Diversity
Management• Continuous Efforts for Employing People with Disabilities• Active promotion of female managers• Achieving a statutory employment rate of 2.3% for disabled
employees• Ratio of female managers: 10% or more

• Disabilities employment rate: 1.8%
• Ratio of female managers: 11%

Promoting HealthManagement and Improving
the Working Environment• Regular meetings of the Safety and Health Committee andthe reduction of occupational accidents• Reduction of vehicle accidents, guidance for safe driving• Continuing to be smoke free in the headquarters building• Automatic brake installation in company vehicles: 100%

• Maintained to be a smoke free building in the headquarters• Automatic brake installation in company vehicles: 97%

Well-planned Training
Programs• Establishment and continuous operation of education systems
by level and job type
• Self-enrichment through support for obtaining official
qualifications and correspondence courses• Training satisfaction and effectiveness: 4.0 points or more(out of 5.0)
• Complete rate of correspondence courses: 80% or more

• 4.4 points in courses by level (165 participants), 4.6 by job
type (66), 4.2 in public courses (108)• Complete rate of correspondence courses: 80.7%

Promoting Work-Life
Balance• Promoting TOLI work styles• Set and and utilization of childcare leave that exceed thestatutory requirements.

• Reduce overtime work - 10hours/month (compared to FY2018)• Obtain “TOMONIN”, work-nurse-balanced company
certification• Encouraging male employees to take “paternity” leave• Reduced overtime work: 3.9hours/month (compared to
FY2018)• Set the childcare leave policy and target at 20% to takepaternity care leave for male employees.

• Hold intellectual property evaluation committee meetings• Rewards for 3 patents and 6 design rights registration• 3 training sessions, 11 participants• Continuous Implementation of (Japan’s) Antimonopoly Act
training• Implementation of (Japan’s) Antimonopoly Act training• Post Compliance Study Mail Magazine - 5times/year

Protection and Utilization ofIntellectual Property Rights

Society

Related SDGs

By FY2023• Recycling rate to be 85% or higher• Reduce industrial waste output by 40% or more (compared to FY2019)
By FY2030• Recycling rate to be 90% or higher• Reduce industrial waste by 60% or more (compared to FY2019)

Respect for Human Rights•	Human Rights

Our Major Initiatives

Compliance with Fair
Transactions• Set Award System for Invention by Employees• Hold study sessions on intellectual property rights forengineers and marketers•	Continuous learning and training opportunity (Training for
Antimonopoly Law, Compliance, etc.)• Consider setting up the new methods to communicate with
suppliers

Strengthen Supply Chain• Product development assuming multiple procurement
resources or specification changes to substitutes• Keep Scheduled Progress of Long-term Repair Plan

• Scheduled Progress of Long-term Repair Plan

Providing and Disclosing
Appropriate Information• Disclosing Appropriate Information on Product Quality and
Safety• Responding to Digital Contents• Hold Technical Data Committee Meeting and theEnvironmental and Safety Committee Meeting• Expansion of digitalization and Enhancing Content• 4 Technical Data Committee Sessions and 4 Environmental
Safety Committee Sessions• Released AI Simulator “Image Fit”, Hold Virtual New
Product Exhibition

Upgrading Quality
Assurance Systems• Product Design and Review that Ensures Safety and Security• Promote Quality Maintenance and Improvement throughQuality Meetings• Continue to Conduct Design Reviews When Developing New
Products or Changing Designs• Reduce Product Complaints, Improve Existing Products
Quality• More than 30 Cases Implemented as Final Design Reviews• Conducted Monthly Quality Meetings at Each Major Factory

Enhance Customer
Satisfaction Level• Improve the Level of Planning and Development Design• Grasping Consumer Needs by Customer Call Center• Strengthen Marketing Abilities in Response to Market Needs• Continue Appropriate Response to Customer's Point of View

• Developed GA3600 Sustive Back and Toughtec Tile
• More than 9000 Inquiries to the Customer Call Center

Contribution to theDevelopment of Culture,
Sports, and Education• Utilization of TOLI Interior History Museum in the Local Area
• Contribute to Sports and Culture by Utilizing Unique
Technologies• Support the Activities of Cultural and Artistic Organizations• Participation in Cultural Events in the Hanshin Region (inbetween Osaka and Kobe) Using the TOLI Interior History
Museum• Increase the Opportunities to Use V-League “Connect Mat”
• Support the Activities of the “Matsuyama Ballet”• Participated in the 2021 Hanshin Area Open Museum Event(Free Entry Fair)• Started sales of V-League “Connect Mat”
• Sponsorship of the “Matsuyama Ballet” Memorial
Performance• Provided Vinyl Sheet for Stage

Supporting and Participatingin Local Communities
Activities• Cooperate with the activities of the Japanese Red Cross
Society• Participate in Operation of Itami Tourism Products Association• Support the Victims of Severe Disasters• Participate in “TRY-YARU week”, Workplace Experience
Program for Junior High School Students• Donated to the Relief Fund for Large-Scale Heavy Rainfall
Disasters• Took Roles of Supervision and Accounting Audit of Itami
Tourism Products Association

Contributing to theConservation of Marine
Resources• Activities to Reduce Marine Plastic Pollution• Marine Resource Conservation Activities• Conduct Regular Cleaning Activities Around Neighboring
Rivers• Supply Sustainable Seafood in Headquarters Cafeteria• Implemented “Mogawa River Clean Activities” in Springand Autumn• Supplied Sustainable Seafood Once a MonthStrengthening Sound
Governance• Set Basic Approach to Corporate Governance• Analyse and evaluate the effectiveness of the board of
directors• Continue the Analysis and Evaluation of the Effectiveness ofBoard of Directors Meeting• Disclosed the Results of the Analysis and Evaluation of theEffectiveness of Board of Directors Meeting

Enrich the Contents ofInformation Disclosure• Set “TOLI Disclosure Policy”• Active Disclosure through Website, Corporate Governance
Report, Securities Report, etc.

• Enrich the information Disclosure related to CSR and
Corporate Governance Code• CSR report published• Information Disclosure based on Recommendations of TCFD

Thorough Compliance• Set and Disseminate Code of Conduct, etc• Establishment and Operation of Whistleblowing Hotline• Continue the Annual Reading of Code of Conduct• Continue the Operation of Whistleblowing Hotline• Implemented the reading of Code of Conduct• Operate Whistleblowing Hotline

T O L I C S R R e p o r t 2022

14

Environment
CSR
PolicyGlobal Environment

Recognizing that global environmental conservation is an important issue for all human beings, we will work to
reduce the environmental impact of our business activities and aim to contribute to a sustainable society.

Establishment of Circular Economy-type Business Activities
Our Group aims to build a Circular Economy-type business activity, and we will contribute to the reduction of environmental
impact and actively work for the sound growth of the Group.

• Establishment of Circular Economy-type Business Activities → P.16
• Environmental Index Progress → P.18
• Information Disclosure and Response Based on TCFD
Recommendations → P.20

Efforts toward Establishment (1)<Carpet Tile Recycling Plant-from introduction to full operation>

Environmental Activities Guidelines
1. We will actively engage in products and services which are eco-friendly designed, safe and secure to use.
2. We will continuously strive to conserve energy, resources, and recycle.
3. We will comply with environmental laws and regulations and fulfill our corporate social responsibilities.
4. We will set environmental targets and strive to utilize the environmental management system andachieve targets.
5. We will regularly disclose our environmental policy, environmental activities guidelines, and the results of our initiatives.

Environmental Index and Targets
TargetTargetTargetTargetTargetMore thanMore than

Reduce more than

Reduce more than30%

FY 2023

by FY 2030

85%

90%

40%
FY 2023

by FY 2030

Amount of Reduction of Industrial Waste/
Reduction of CO2 Emissions*2

930 t-COApprox.

Sales Offices

Other Office EMR*

Osaka Office EMR*

Used carpet tile

Sales Offices

Osaka Management Office

Tokyo Office EMR*
Sales Offices

Tokyo Management Office

Global Department EMR*

Flooring Production
and Technical
Department EMR*
OthersHiroka TOLI Floor

Gifu TOLI

Shiga TOLI

Shiga TOLI Itami OfficeWall Covering
Department EMR*
OthersSanten TOLI

Curtain Department
EMR*
TOLI Interior Planning
Atsugi Sewing Factory

Atsugi Office EMR*TOLI OFUROKE Atsugi
Make-up Center

Environmental Measures Committee

Carpet Production andTechnical Department EMR*

CS Environment Division

Atsugi Factory

Itami Factory

Kanto Logistic Center

Administrative Departments

Itami Office EMR*

Logistic
Department EMR*
Chuo Logistic Center

TOLI Warehouse andDistribution Company

Kansai Logistic Center

700 t
2

2,300 tTarget:Approx.

2,500 t-CO

*1

2

Environmental ISO Promotion Committee

ISO14001 certified

Organization/
OfficeApprox.

<PVC: Recycle Contents>

FY 2022
Target:Approx.

*1 Including disposal of waste from the market*2 CO2 reduction amount and target are the sum of the entire supply chain (Scope 1 - 3)

Environmental Management Supervising Representative

https://www.jtccm.or.jp/

Department/Related
Companies

FY 2021
Amount ofReduction ofIndustrial Waste
Reduction of
CO2 Emissions *2

Top Management

OthersEMCA
RE 0707

It is used as part of the recycled material at ourGroup’s factories, and is reborn as vinyl sheets
and tiles. Much of the leftover materials
generated during manufacturing are notdisposed, but are recycled as materials for
products at our plants or our Group company’splants.

It has been used for many years in various places
such as hospitals, schools and offices.

Our Group promotes efforts to reduce environmental impact in each department under an environmental management
system headed by top management. The Carpet-Production department has also obtained ISO14001 (International
Standard for Environmental Management Systems) certification.

JTCCM

Our Group purchase recycled PVC resin.
In FY2021, recycled PVC amounted to 10% of
all PVC we used.

by FY2030

Environmental Management Promotion System

TOLI’s carpet production
departments have ISO14001
certification.
Scope: Production of carpet

It becomes industrial
waste and will be
incinerated or landfilled.

Not dispose, but recycle(Compared to FY2020)(Compared to FY2019)

ISO 14001

When
discarded.

Reduce60%(Compared to FY2019)*Ratio of intragroup recycling+valuable recycling in total disposal

In 2021, Shiga TOLI, the main manufacturing factory of
carpet tile introduced “Carpet Tile Recycling Plant”.
The pile part (surface fiber layer) and the backing
layer of the carpet tile are processed into recycled chips
without separating. Recycled chips are reused as part ofthe backing layer of carpet tile.
From FY2022 onwards, it is planned to do fulloperation. In addition to recycling of discarded materials suchas leftover materials within the Group, we will also expand
the collection and disposal of municipal waste materials using
the (Japan’s) wide-area certification system, thereby
contributing to the reduction of environmental impact.

CO2 Emissions (scope 1 - 2)

Amount of Industrial Waste

Recycling rate*

Agricultural vinyl used in greenhouse cultivation, etc.

RecycleManufacturing

The percentage of recycled PVC in FY2021 was 28%(10%: PVC from agricultural greenhouse, 18%: Other
recycled materials).
Our group is not limited to the current recycling
activities and in-plant recycling, but is also actively working
to expand the collection of used carpet tile waste in themarket by utilizing the (Japan’s) wide-area certification
system, and is promoting “TOLI Complete Recycling“.

Efforts toward Establishment (2)<Expansion of products using recycled materials>
Our group is promoting the expansion of the use of recycledmaterials to reduce industrial waste.
We contribute to the reduction of industrial waste by
establishing a manufacturing technology that reuses vinyl
resins from used PVC in agricultural greenhouse as a partof raw materials and using them at a certain rate. This is
one of the major activities and we established thistechnology more than 40 years ago.

Percentage of Recycled PVC
PVC resins fromagricultural
greenhouse

10%

PVC resin from otherrecycled material

April 2021▼
March 2022

PVC resins(Virgin materials)

72%

18%

*Percentage in resin volume* Environmental Management Representative

15

TO L I C S R R e po r t 2022

T O L I C S R R e p o r t 2022

16

Environment
CSR
PolicyGlobal Environment

Efforts toward Establishment (3)Efforts toward Establishment (5)<Promotion of TOLI Complete Recycling><Development and supplying eco-friendly products>

We collect used carpet tiles, process the waste carpet tile
into recycled chips at our Group factory, and reuse theproduced recycled chips as part of the carpet tile backing(Sustive Back).
We will contribute to the realization of a sustainable
society by promoting the “TOLI Complete Recycling”.

“Carpet Tile GA3600 Sustive Back”

Recycling“Recycling”

used carpet tile

Sustive Back is our environmentally friendly carpet tile
backing that uses recycled chips as part of carpet tile’s
backing layer. We recycle carpet tile waste generated at
our Group factory and used carpet tile collected from themarket, thereby contributing to reducing industrial waste
emissions. In the future, we will strive to achieve zero
emission at our Group carpet tile factory as well as toexpand the recycling of used carpet tile.
Sustive Back

9,000t/year*

Approx.

*Compared to previous GA3600 (without recycled materials)

Collecting

Record of total disposal and recycling rate

(Thousand tons)
22

19.9

20
18

19.9

82.1

75.6

16

21.4

21.0
19.4
71.7

50

2017

2018

2019

2020

Others 1,2

8%

17Parties involved

Headquarters, Itami factory, Atsugi factory, Hiroka TOLI
Floor, Shiga TOLI, Shiga TOLI Itami Office, Gifu TOLI, Santen
TOLI, TOLI OFUROKE, TOLI Interior Planning, TOLI
Warehouse and Distribution Company

15,200TOLI Group CO2 Emissions (Scope 2: Electricity)(x 1,000t-CO2)

11%

Others 2,2

Shiga TOLI Itami Office

Atsugi Factory

Logistics (TOLI owned
warehouse, storage,
handling etc.)

2,5

16%

2,3

15%

Atsugi Factory

0.6 3%

0.9 5%

Gifu TOLI 1,7
Shiga TOLIFY20215,931%

Approx.

19,200t-CO2

9%Itami Factory

3,4 18%

Shiga TOLI

Hiroka TOLI Floor

2,5 13%2,0 10%

Scope 1 and 2: Headquarters, sales offices, Itami factory, Atsugi factory, TOLI Warehouse and Distribution Company, and other Group companies. Cargo handling, storage,
and transportation associated with inter-plant, warehouse transportation and shipments within the TOLI Group are calculated in Scope 1 and 2.

Eco Mark

Eco Leaf

Total CO2 Emissions in Manufacturing

CO2 Emissions in Manufacturing (Output level)

40.0

0.80

(x 1,000t-CO2)

Applicable area

Recyclable flooring materials

35.0

TOLI’s used carpet tile with PVC
backing

30.0

TO L I C S R R e po r t 2022

Among wasted materials, those sold as valuable resources

23%

t-CO2

TOLI is the only company in Japan that has beenauthorized to collect used carpet tile.

Sample book disassembly work

Valuable recycledmaterials

3,5

FY20212,1 14%<Collection of Used Carpet Tiles>

In August 2022, we opened the Sample Recycling Center
in Itami Headquarters. We will reduce the amount of CO2
emitted during disposal by separating sample books andproduct samples, which were previously discarded, into
waste and recyclable resources.
In the first fiscal year of establishment, we areproceeding with sorting of
undistributed sample books
and samples, which are
stored in Itami Headquarters
when products are renewed
or discontinued.

Amount of waste returned to the manufacturing process
within TOLI Group

Itami Factory

Gifu TOLI

eco-friendly carpet tile

<Reduction of Waste at Sample Recycling Center>

Recycled materials in
TOLI Group(FY)TOLI Group CO2 Emissions (Scope 1: Fuel-related)

1,6 11%“Producing”

Efforts toward Establishment (4)Total weight of disposal*Total of recycled materials in TOLI Group, valuable recycledmaterials, disposal for recycle, and waste

40

2021

(x 1,000t-CO2)

2,0 13%

Greater Tokyo

70

12

Group sales company

ProducingUtilization of the (Japan’s)Wide-area Certification System

80

73.0

14

10

Total amount ofdisposal

9075.3

Approx.

used carpet tile

100

60

Shiga TOLI Itami Office“Collecting”(%)

Total amount of disposal
Recycling rate

24

: Data of TOLI Warehouse and Distribution Company is included from FY2019

Annual CO2 emissions reduction

TO L I Co mple te
Re c yclin gEnvironmental Index Progress

35.2

32.3

0.70

30.6

27.2

25.0

The products with this logo arerecognized as having little
impact on the environment andhelping to preserve theenvironment throughout its
entire products’ life cycle, fromproduction to disposal.

(Japan’s) Green Purchasing
Law-compliant product

The Eco-Leaf Declaration (mark) isa mark certified by SuMPO
Environmental Labeling Program
operated by the Sustainable
Management Promotion
Organization. It verifies anddiscloses quantitativeenvironmental impact data on
products obtained through LCA(Life Cycle Assessment).
CRI Green Label Plus

0.30

10.0

0.20

5.0

0.10

2017

2018

2019

2020

2021

(FY)

Parties involved: Itami factory, Atsugi factory, Hiroka TOLI Floor, Shiga TOLI, Shiga TOLI
Itami Office, Gifu TOLI, Santen TOLI, TOLI OFUROKE, TOLI Interior Planning

TOLI’s CO2 Emissions and Environmental Impact Reduction Targets
35
30

32.1

25
20

17.6

Scope 1: Fuel-related

34.4
19.2

Scope 2: Electricity-related

FY2030 target
%

10
0

14.5

15.2

2020

2021

2030

0.62

0.63

0.00

2017

2018

2019

2020

2021

(FY)

Scope of calculation: Same as shown on the left
CO2 emissions (basic units) = CO2 emissions from fuel/electricity use (t-CO2) /production volume (1,000m2)

In FY2021, CO2 emissions increased due to higher
production volumes.

• Promotion of energy saving by reviewing production processes• Use of waste heat boilers and inverters to improve equipment efficiency• Use more LED for interior lights• Shift to HV partially for company vehicles(compared to FY2020)

15
5

0.63

Major Initiatives in FY2021

30

Reduce

0.68

0.50
0.40

0

0.72

0.60

15.0

40

The indoor environment
certification system for carpet
products, established by CRI(Carpet Rug Institute) of UnitedStates.

29.5

20.0

(x 1,000t-CO2)

The product with this logo arerecognized as using of either
unused fibers (wastage of yarn
production), recycled fibers,
recycled plastics, and otherrecycled materials which are 25%
or more of the total weight of the
products.

(t-CO2/1,000m2)

2050

(FY)

T O L I C S R R e p o r t 2022

18

Environment

Global Environment

CSR
PolicyInformation Disclosure and Response Based on TCFD Recommendations

TOLI Group CO2 Emissions(x 1,000t-CO2)•Others

1 0.2%•C alculated based on “Basic
Guidelines for Calculating
Greenhouse Gas Emissions Throughthe Supply Chain” by Ministry of
the Environment and Ministry of
Economy, Trade and Industry• In accordance with the guidelines ofthe Ministry of the Environment, we
calculated the cargo handling,storage, and transportation of
entrust warehouses associated withthe transportation and shipment
between factories, warehouses
within our group in Scope 3
Category 4.
• S cope 3 is calculated through theportion of business activities related
to products sold by TOLI. Purchases
and sales by other companies of
TOLI Group’s sales companies are
not included in the calculation.
• T he total % is not 100% due torounding off.
• F or calculation of each category in
Scope 3, we are continuously
striving to improve the accuracy of
calculations.

•Scope 1
15 3%
Scope
2
•
19 4%

•Category 12 (disposal of sold products)
25 6%•Category 5(waste from business)

4 1%•Scope 3414 93%•Category 4(transport, delivery (upstream))

13 3%

FY2021

448

Approx.
x 1,000t-CO2•

Category 3(Fuel and energy activities
not included in Scope 1 and 2)

7 2%•Category 1(purchased products
and services)•Category 2 (capital goods)

354 79%

10 2%(Million JPY)

Classification

FY2020Major initiatives

Expenses(1) Operational area costs

FY2021

Investment

Expenses

426

57

423

68

Introduction and maintenance of pollution prevention
equipment

122

55

135

17

(1)-2 Global environmental
protection costs

Introduction and maintenance of energy-saving
equipment

20

2

48

51

(1)-3 Resources recycling costs

Recycling, Waste Disposal, and Pre-Cutting

284

0

240

0

(2) Upstream/downstream costs

Eco Mark usage fees

5

0

9

0

(3) Administrative costs

Maintenance of environmental management systems
and planting management

28

0

30

0

(4) R&D costs

To develop green products

91

2

81

129

(5) Social activity cost

—

0

0

0

0

(6) Environmental remediation costs

Pollution load levy (air)Total

Effect of Environmental Conservation
FY2021(x 1,000GJ)

672.5

717.0

CO2 emission *1(x 1,000t)

29.8

32.1

(x 1,000t)

19.8

21.7

(%)

74.0

72.7

Recycling Rate *1

1

0

1

0

551

59

544

197

Economical Effect by Environmental Conservation (Million JPY)

FY2020

Energy consumption
Amount of Industrial Waste*1 Values differ from those in P.18 charts due to differences in the scope of
aggregation.

Items
Revenue*2

Revenue from sale of valuables
Energy cost reduction

Cost reduction *3

FY202142.5

TO L I C S R R e po r t 2022

Submission/ReportSupervision/Direction

CSR Committee

Relevant
departments
and affiliatedcompanies

Direction*Climate Change Response Project Manager of the Company

Observers: Audit & Supervisory Board Members (does not include
independent officers)
Submission/Report

ReportDeliberation, determination, supervision and directionof important climate action related matters submitted
or reported by the CSR Committee• CSR Committee

Chair: President and Representative Director
Members: Directors (does not include independent)

Supervision/Direction

CSR Executive Committee
Members:
Representatives of executive officers responsible for Manufacturing,
Sales and Administrative Headquarters

Identification of climate change related risks andopportunities
Formulation of measures in response to identified risks
and opportunities
Formulation of targets and indexesManagement and monitoring of progress etc.

• CSR Executive Committee

Identification of risks and opportunities facing eachdepartment and action to address them
Submission of important matters to the CSR Committee
Management and monitoring of progress
Sharing with each department and follow up

Reduction of expenses for waste treatment or
disposal
Total*W e began conducting scenario analysis for our domestic business which accounts for a large share of total sales. We will gradually conduct scenario analysis
for overseas business as well.

Development of circular
economy type businesses in linewith society's environmental
awareness

Raw materials• Rising prices for recycled raw
materials due to growing
demand• Rising prices for virgin raw
materials due to environmental
regulations• Business closure of raw
materials manufacturers due toregulations

Market• Growing demand for eco
friendly products• Mounting needs for energy
efficient and zero energy
products and longer product's
lifetimes (ZEB, ZEH)

-24.6

• Introduction of carbon pricing• Introduction of renewableenergy sources• Incentives for in house power
generation

Our response• Establishment of circular
economy type businesses
including collection of wastematerials and full utilization• Promotion of adoption of highefficiency equipment, weight
reduction of products andreduction of environmental impactof transportation and delivery• Development of technologies(recycling technologies, efficient
processing technologies)• Expansion of products andservices that will help reduce
CO2 emissions

Environment* None of the changes are as drastic as
those in 4°C rising scenario-153.7*2 Estimated cost of disposing of valuables + Actual revenue*3 Year-on-year differences in actual figures (+: Reduced expenses, -: Increased expenses)

Governmental Policy on energy• Increase in the frequency andintensity of natural disasters• Rise in average temperatures• Sea level rise

-171.6

Parties involved: Headquarters, Sales Offices, Itami factory, Atsugi factory, Hiroka TOLI Floor, Shiga TOLI, Shiga TOLI Itami Office, Gifu TOLI, Santen TOLI, TOLIOFUROKE, TOLI Interior Planning, TOLI Warehouse and Distribution Company
Referred guideline: Economical Accounting Guideline 2005 (Ministry of Environment)

19

Roles
• Board of Directors

Board of Directors

2°C rising scenario

Investment(1)-1 Pollution prevention costs*1

Diagram of Promotional Framework

We have conducted an analysis of scenarios in 2030, adopting the climate of 2°C and 4°C temperature rise

Environmental Conservation Cost

Effect Items

Response to TCFD

<Strategy (Scenario Analysis)>

Environmental Accounting

Break
down

We appointed the Climate Response Project Manager on April 1, 2022 and on April 5, we announced our endorsement of
the recommendations of Task Force on Climate-Related Financial Disclosures (TCFD) and our participation in the consortium.
We will enhance the quality and quantity of disclosures of relevant information on the risks and opportunities to ourbusinesses posed by climate change, while further strengthening our analysis and efforts to address climate change. TCFD
related information is disclosed in IR information on our website.

Governmental Policy onenergy• Reliance on fossil fuels• Introduction of renewableenergy sources

Our response• Proactive response to abnormal
weather that will affect stableprocurement and supply• Reinforcement of owned assetsthat are vulnerable to natural
disasters• Response to increased risk ofinfectious diseases among
employees

4°C rising scenario
Business continuity planning in
response to escalating natural
disasters

Raw materials• Instability in supply of raw
materials due to climate change

Market•G rowing demand for products
suited to rising temperatures•M ounting needs for energy
savingEnvironment• Increase in the frequency andintensity of natural disasters• Rise in average temperatures• Sea level rise
• Increase in (tropical) infectious
diseases

We referred mainly to the scenarios disclosed by the agencies and research institutions shown in the table below.
Rise °C

Scenario used in analysis

2°C

Sustainable Development Scenario (SDS): “World Energy Outlook 2021” by IEA

RCP2.6 (2°C scenario): “AR5” by IPCC

4°C

STEPS (Stated Policies Scenario): “World Energy Outlook 2021” by IEA

RCP8.5 (4°C scenario): IPCC’s AR5

T O L I C S R R e p o r t 2022

20

Environment

Social Initiatives

Global Environment

CSR
PolicyCSR
Policy<Risks and Opportunities>

Recognizing the importance of all human rights, we practice respect for human rights in our businessactivities.

We identified the risks and opportunities envisioning each stage of the supply chain for each of factors behind risks andopportunities. From among these, we identified seven risks and six opportunities that would significantly impact ourbusiness and that have a high probability of actually occurring.

Resource efficiency

Establishmentof circular
economy typebusiness

Establishment of recycling business thatturns waste materials in the market andwaste materials generated at own
factories into recycled raw materials
leads to lower raw materials costs.
Corporate reputation improves as aresult of contribution to reduction of
CO2 emissions and sales increase.

Large

Energy sources

Reduction of energy
costs through energy
saving measures
such as theintroduction of highefficiency equipment

Energy costs in each supply chain are
reduced through the adoption of highefficiency equipment that helps reduce
CO2 emissions, lighter weight products,
and increased transportation anddelivery efficiency, resulting in higher
profits

Small

Use of public
sectorincentives

Opportunities

Large

Higher levels of technology to meetneeds for low carbon materials andvarious other raw materials. To process
them efficiently and more options forthe procurement of raw materials
strengthen business continuity
capabilities and also reduce
manufacturing costs
Provision of new products and services
that help reduce CO2 emissions leads toincreased sales
Sales increase with the emergence of
renewal and replacement demand* Financial Impact: Impact as of FY2030<Strategies (countermeasures)>
We will continuously implement medium and long-term countermeasures to address risks and opportunities identified
based on scenario analysis and will improve the resilience of our business activities.
Countermeasures

21

Details•Reduce greenhouse gas
emissions by steadily
implementing
groupwide plan(1) “Reduce”...<Scope 1 and 2> Install energy saving/energy efficient equipment and review processes<Scope 3> Reduce energy used in transportation and delivery(2) “Create”...Install solar power generation facilities(3) “Replace”...<Scope 1 and 2> Switch to low emission energy sources and renewable energy sources<Scope 3> Switch to raw materials with a low emission factor•Expand eco friendly
products and services
and improve profit
margins(1) Expand Eco Mark products and other products made from recycled raw materials(2) Expand products with a long lifetime and easy maintenance products (NW series, etc.)(3) Expand easy to install products (flooring which does not require adhesive, etc.)(4) Promote shift to lightweight products(5) Expand new eco friendly products and services(6) Improve technologies for optimum use of recycled materials•Procure and use
recycled raw materials(1) Collect waste materials in the market through the wide area certification system, etc.
(2) Pursue zero emission in carpet tile business(3) Establish stable procurement routes for recycled raw materials(4) Improve technologies for optimum use of recycled raw materials (5) Promotion of cross-factories utilization of raw materials•Develop in-house
upstream processes(1) Establish technologies for the in-house production of upstream raw materials(2) Install new raw material manufacturing equipment(3) Expand technologies to meet needs for various raw materials(4) Invest in new equipment for intermediate processing and recycling, put into stable operation•Strengthen supply chain BCP(1) Strengthen business continuity planning (BCP) that also covers supply chains•Improve transportationand delivery(1) “Reduce”...<Scope 3> Reduce transportation and delivery energy costs• Lighten the weight of products• Improve transportation and delivery efficiency• Improve storage and loading/unloading efficiency• Request outsourcing logistics companies to improve their transportation and delivery efficiency

TO L I C S R R e po r t 2022

Promoting Diversity Management
Diversity of the organization is important for companies to respond flexibly to changes in the business environment. We areworking to promote diversity management so that our employees’ abilities, individualities, values, and ways of working willlead to growth.

Active Participation of Female Engineers

Small

Developmentof newproducts andservices
through R&D
and innovation

Establishment of technologies to meetneeds for expansion in the recycling
rate, reduction of CO2 emissions andreduction of manufacturing costs, andexpansion of eco friendly products andservices - applying these technologies
leads to increased sales

MediumDisasters cause supply chain
disruptions, leading to thesuspension or scaling back ofbusiness activities and decline insales. Disaster countermeasures also
lead to higher costs.

Financial
impactSmall

Increase in theseverity andfrequency ofabnormalweather events
such as typhoons
and floods

Details

Products and services

Rising raw
material prices

Factors behind
opportunities

Market

Large
Large

Higher costs for the development
and procurement of energy saving
products, products with a long
lifetime, and easy to install andlightweight products
Higher capital investment anddevelopment costs as a result of
rising raw material prices and theadoption of in-housemanufacturing measures

Category

Large

Shift to recycling oriented businessresults in higher capital investment
and development costs

Small

Switch from raw materials with ahigh emission factor to raw
materials with a low emission factor
leads to higher capital investment
and development and procurement
costs

Large

Upfront costs
associated withtransition to
eco friendly
technologies

As a result of the introduction ofcarbon pricing, private sector
demand stagnates and sales decline

Small

Replacement ofexisting
products andservices witheco friendly
options

The introduction of carbon pricing
and rising carbon prices lead tohigher energy costs and raw
materials costs

MarketTechnology

Introduction ofcarbon pricing

Details

Financial
impact

Acute

Risks

Transition risks

Regulation policy

Category

Physical risks• Promoting Diversity Management

Opportunities
Factors behind
risks

Small

Risks

Human Rights

In the past, it was not an overstatement to say that it wasa “workplace only for men” as a manufacturing site forbuilding materials with large mass. However,
manufacturing from a women’s perspective for interiormaterials and for our most important invisible asset,“advanced technologies”, we have been actively hiringsuperior human resources with no gender gap. In
addition, the ratio of women recruitment among
technicians in the past five years has reached nearly 50%,
and female technicians with rich individuality are playing
an active role in the core of manufacturing.
In addition, as an engineer, some employees haveaccumulated experience for a certain period of time andthen extend the field of active use to the planning andmarketing section, which will help create a diverse working
environment by freely exercising their own sensitivities aswell as their specialty fields.
In the action plan prepared under the (Japan’s) Law for
Promotion of Women’s Participation, our goal is to achieve
and maintain a 10% ratio of women in managerial positions,and we have achieved this goal for three consecutive years
since FY2020.

Number of female employees*1

FY2019FY2020

FY2021

FY2022

245

241

258

264

New graduates/Mid-career female recruits

26

19

24

17

Number of female managers

21

22

23

24

Ratio of female managers*2

9.8%

10.3%

11.0%

11.5%

Ratio of female officers*3

5.0%

9.5%

13.0%

13.0%

Non-consolidated (as of the end of June, each FY)*1 Except loaned employee, part time worker*2 Ratio of female in managers position*3 Ratio of female in directors, auditors, executive officers position

Employee Interview

Accept Diversity, Target to Create Working
Environment for Career Development
It is important to create working environment to support
the challenge capitalizing on the strength of each individual
in a situation that it is a commonplace for women,
foreigners, and people with disabilities in each field such as
executives and managers. At present, half of theemployees are female, but in order for employees withdiversity to continue to work, it is essential to create aworking environment that is not restricted by time or place,utilize IT tools. It is also essential to create an environment
in which employees can develop their own career
regardless of gender.
In recent years, there has been an increase in thenumber of male employees who are proactive in theparticipation of childcare.
Tomoya Nishiyama
Manager
Technical and Development Department, Vinyl Floor Covering GroupT O L I C S R R e p o r t 2022

22

Social Initiatives
CSR
PolicyEmployment and Labor

We aim to create and secure jobs, create a safe and pleasant working environment.

Well-planned Training Programs• Promotion of work-life balance → P.23

Improving the ability of each employee and productivity as an organization are indispensable to realizing the “revitalizationof human and organizations.” We believe it is important to create an environment that can respond to the diverse needs of
employees who are motivated to grow, and we conduct systematic human resource development.

• Well-planned Training Programs→ P.24

Providing the next generation withsystematic training opportunities andcreate a voluntary training environment

Promoting Work-Life Balance
In September 2019, we established the “TOLI Work Style” basic policy with the aim of promoting work styles that matchthe job content of each workplace. We put the importance on flexible adaptation to different era and change of work style.
All of us will give thought to improvement of productivity and operational efficiency to achieve “TOLI Work Style”.
Basic Policy on “TOLI Work Style”
1. Create an environment where all employees can work in good physical and mental health.
2. Aim to achieve both work-life balance and productivity improvement.
3. Make use of “the spirit of co-creation” by company and employees as the driving force.

Expanding flexible work-from-homeenvironment and system
In April 2022, we launched work-from-home system inorder to achieve a balance between changes in life stages,
such as nursing and caregiving, and appropriate way ofusing working hours according to content of work. Within
FY2022, we are trying to achieve to create the work styleregardless of the location with higher efficiency, by
switching to laptop all together and promoting digitalizationof sales paperwork that convert FAX orders to data. We areworking to create an environment that will increase thenumber of work-style options available to each employee.

Employee Interview

Enhancing Flexible Working Styles andWork-Life Balance
My department had introduced a system that allow us towork online and provided mobile devices, making it easy towork from home. Originally, the work-from-home systemstarted for the purpose of preventing COVID-19 infection.
However, I could find some good perspectives such asutilization of commuting time and change mindset to work
more effectively in limited time with my family. After
working efficiently, I have more days
to have dinner with my family. This is
the fulfillment of work-life balance
for me.

Encouraging to Take Paternity Leave
Nowadays, the participation of fathers in childcare has
become normal. With the aim of creation of environment
which employees can support each other so that everyone
can secure the time for childcare without hesitation, we
have set goals through labor-management consultations
and expressed our intention to work on these goals
throughout the company. In addition, we prepared anddistributed internal magazine and manuals to all
employees in order to promote the use of childcare leave.
We have a unique leave system in which unused paid
leave can be used for childcare purposes. We will encourage
male employees to actively participate in childcare activities,
and will focus on building a flexible work system for
employees.

FY2018FY2019FY2020

FY2021

222

223

244

204

121

107

128

131

Percentage of male employees taking childcare leaveand paid leave for childcare purpose

Number of employees obtained
public license
Number of awards forinventions and innovations

39

46

34

39

TargetPromoting Global Education

20% or more

Hiroyuki MizutaniPart of in-house magazine

TO L I C S R R e po r t 2022

In the first and third year of joining the company, at thetime of promotion, and at other important milestones in
the career formation of employees, we provide “hierarchical”
and “job-type” training programs for the purpose of
acquiring the necessary knowledge and fostering the mind ineach position, and are working on systematic and qualified
human resource development.
Furthermore, based on the idea of utilizing the skills
obtained in these training sessions in the workplace has a positive
impact on the surrounding members. We measure the“effectiveness” of the training and operate it as a series of
packages from the implementation of the training to thefollow-up several months later. In FY2021, 165 employees
participated in “Training in each position”. The effectiveness byquestionnaire after training was 4.4, out of 5. 66 employees took
“training for their job type” and its high effectiveness was 4.6.
In “Apply-based training” that can be voluntarily selected
and attended, 1/4 of employee participated last year. 89% ofthem answered that they are making use of what they learnedin their job. We will focus on creating opportunities for
employees to learn for their own growth, such as providing aplace to share information among learners, and assisting themin correspondence course and obtaining public license.
Total number of correspondence
course participantsMarketing and Planning Department,
Promotion Group

23

Review of Qualifications by “NexT Project”,
a cross-organizational project

We carry out 2-year long course for language training forEnglish and Chinese. In FY2021, 2 engineers who completed
Chinese training were assigned to overseas base. Employees
who can play active roles globally are steadily developing intheir career. Also we are enhancing global mindset in eachdepartment with having language trainees annually andhiring foreign employees. Through these trainings, we aretargeting to spread the spirit to work positively fromindividual to team, and team to whole company, as the partof Company's business globalization.

In FY2021, NexT Project, the second-year crossorganizational project, implemented a project entitled“Review of Qualifications Definitions,” which is the basis
for personnel evaluations. The purpose of “NexT project”
is not only discussing and suggesting to management, but
to make it happen.
In this project, a lot of positive employees of various age
and job type applied to join. They had energetic discussions,then the evaluation system was revised so that the employees
could accept and that the system would lead to the realizationof their own career advancement. The achievement of theirown suggestion will lead to the growth of our employees.

Employee Interview

Recognizing that I can widen my view andhuman network by joining the project
I applied for this project because I wanted to create aworkplace environment in which each employee can be
more positive than now. In order to disseminate theevaluation system within the company, the activities
included the creation of the carrier image shown in the
figure below and the proposal of operation manuals.
Through the project, we were able to reaffirm the factthat a company is formed through the involvement of avariety of people, and my perspective also expanded. It wasa valuable experience to touch on the work related tohuman resources, which was not normally involved in myusual business, and to participate in the system reform thatwould be the core of the company.

Shotaro Sosogi

Global Department

Proposed idea by project
members

T O L I C S R R e p o r t 2022

24

Social Initiatives

Business Activities

CSR
PolicyCSR
PolicyQuality

We will promote fair and equal business activities and aim to build better relationships of trust with all
stakeholders.

We will promote manufacturing from the customer’s perspective based on reliable quality and technology,
and aim to provide safe and secure products and services.

• Strengthen Supply Chain• Protection and Utilization of Intellectual Property Rights• Implementation of (Japan’s) Antimonopoly Act training• Enhance Customer Satisfaction Level → P.26
• Upgrading Quality Assurance Systems → P.27
• Providing and Disclosing Appropriate Information → P.27

Strengthen Supply Chain

Enhance Customer Satisfaction Level

To ensure a stable supply of products to customers, we continue to strengthen our entire supply chain by developing
products in anticipation of multiple purchases and changes in specifications to substitutes, and by reviewing inventory levels
for specific procurement items.

In order to design the lifestyle of our customers, we have been improving our way of manufacturing, based on trusted
quality and technology, from the customer’s standpoint.

Start Producing In-house Spun Nylon Yarn
Our Group tried to produce in-house spun nylon yarn
targeting stable supplies of our products, as a part of the
in-house production of upstream raw materials. After
started working on this, all procurement activities wereaffected by the chaos of worldwide supply chain caused by
COVID-19 pandemic and rising of geological risks. In such adifficulty, we managed to achieve full-scale operation of
the equipment to produce nylon yarn for carpet tile. This is
one of the important theme of mid-term business plan
“SHINKA Plus ONE”. We will continue to strengthen ourefforts toward in-house production of upstream
technologies and strive to improve our technologicalinnovation and product supply capabilities.

In response to the needs of various societies, such as work
style reform, the digitization of contact points with customers
is rapidly advancing. Through our website, we are working to
upgrade a wide range of digital contents, including productintroduction. We will pursue high customer satisfaction by
providing highly convenient digital services.

New products exhibition

Nylon for carpet tile spinning equipments (Shiga TOLI)

Protection and Utilization of Intellectual
Property Rights

Implementation of (Japan’s) Antimonopoly
Act training

We are actively working on acquiring patents, design and trademark
rights etc., and strive to protect intellectual property rights.

We conduct training on the Antimonopoly Act every year
to promote fair, transparent, free competition and fairtrade.

Number of patents, designs, and trademarks held domestically(Number)

Patents

DesignTradenark

578

Those needed to be trained

In response to changes in the social situation caused by
COVID-19 pandemic, it was difficult to hold realisticpresentations for new products. In FY2020, we began
holding online new products exhibition. In FY2021, we
created a virtual venue with full CG and arranged productexhibitions to create a realistic sense of presence like aactual exhibition. In addition, we tried to show digital-ish
performance as the flooring of digital venue ischangeable.
We could have positive feedback from customers
through questionnaire that “the event suitable for current
social situation”, “received advanced impression”. Based onthese feedback, we aim to further evolve our online new
products exhibition.

571

other departments.

400

Past training themes

300

2022 Consideration for Alliance in Competition Law

100
0

25

106

133

2019

TO L I C S R R e po r t 2022

108

“Image Fit”, new tool available in our website, is a uniqueinterior synthesis simulation system utilizing AI. The AI
recognize the photos taken by smartphones as an interior
space, and synthesizes the flooring and wall covering
without unnaturalness to create an installation image. It is
possible to check installation image by anybody by using
various functions such as the interior space photograph,design pattern, and rotation or direction of installationthat are prepared beforehand.
Easy-to-use “Image Fit” can be used as a new process
for interior material selection, contributing to improved
customer satisfaction.

Select product andinstallation method• Executives from sales, procurement, planning and

563

Take photo of the interior spacethat will be used for simulation

500

200

AI Simulator “Image Fit”

• Directors, auditors, executive officers

700
600

Promotion of digitalization of customer
services137

120 148

2020

2021

2021 Outline of Subcontracting Regulations - Focusing
on Construction Industry Law Regulations(FY)

2020 Trends in antimonopoly laws and regulations inrecent years and points to be noted in corporate
confidentiality management

Key visual - 2022 New Products Exhibition

Stripe design with 3 colors ofcarpet tile

Random design with 3 colors ofcarpet tile

T O L I C S R R e p o r t 2022

26

Social Initiatives

Quality

CSR
PolicyCSR
PolicyQuality Actions Guidelines
President’s policy
Senior GM of manufacturing headquarters’ policy
Senior GM of sales headquarters’ policy
Senior GM of administration headquarters’ policy

We aim to contribute to the development of society by promoting more voluntary activities toward thegoal of achieving a better society.

: Look toward future, connect the evolution with “tomorrow’s growth”.
: Aim to maximize customer satisfaction by continuing to produce high-quality,
high-value-added products.
: Gain customers’ trust and satisfaction with fine-tuned services that continue
to evolve.
: Make effort for the company by establishing a compliance system andcultivating human resources.

• Supporting and Participating in Local Communities• Contributing to the Solution of Environmental Problems• Medical support activities for developing countries

Upgrading Quality Assurance Systems

Supporting and Participating in Local Communities

Based on a quality assurance system that enables each division to cooperate in all processes, we will appropriately andspeedily reflect customer requests and opinions in our manufacturing and services.

Development Division

Purchasing/Outsourcing Division

Manufacturing Division

Sales DivisionMarketingExpansion of elemental technologies

Supplier management

Process management

CR activities*

Grasp needs

Design/Develop

Purchasing specifications

Production

Sales

Plan

Set criteria of quality

Product specifcations

Inspection

Respond to customers

Quality control meeting

Quality control meeting

Prevention of fraud and tampering

Utilization of historical buildings incooperation with local governments

Customers

Planning Division

Design review

We actively participate in the communities in which we have operations and production bases nationwide, in cooperation
with local people and activities.

Requests

Sales

Quality Assurance Systems

Strengthening of monitoring functions

CS Environmental Department (QC management group)*Stands for Corporate Relation Activities

Design Review/Quality Control Meeting

Prevention of Fraud and Tampering

In product development, collaboration between productplanning and manufacturing sites is important. In “Design
Review”, the planning and development divisions take leads.
It reviews customer’s needs and requests on new products, also
assesses the suitability of required quality and supply stability.
In addition, “Quality Control Meeting” is centered on
manufacturing and outsourcing control divisions to maintainand improve productivity, make improvements based on requests
for existing products, investigate the causes of quality complaints,
examine and implement measures to prevent recurrence.

Our Group has established “QC management group” inpurpose of preventing fraud and tampering. The QC
management group constantly conducts activities toobjectively check for any problems or issues in processes
related to quality from the customer’s perspective.
Also, by regular meeting with quality-related departments
at group factories and sharing opinions deepens consensus
of importance for prevention of fraud and tampering.
We will continue to implement such activities and strive tostrengthen our sincere manufacturing culture.

Providing and Disclosing Appropriate Information

27

Technical Data Committee

Environment and Safety Committee

Technical data committee deliberates whether information
disclosed and data are appropriate and easy for customers
to understand, such as whether the performance
evaluation tests for products are of test evaluation
method that is closer to actual conditions. We take theopinions of our customers seriously, and strive to provide
easy-to-understand expressions for our customers
regarding explanations of installation methods,
maintenance methods, and others.

To ensure that customers can use our products safely andsecurely, ”Environment and Safety Committee” obtains
and shares information of chemical usage regulation not
only in Japan but also overseas with related departments.
That helps to respond to each regulation, and we disclose
these information appropriately in SDS (Safety Data
Sheet), AIS (Article Information Sheet) and promotional
tools.

TO L I C S R R e po r t 2022

Social Contribution

We believe that making effective use of buildings with
cultural value and disseminating their value to society willlead to the enhancement of regional values and contributeto the creation of city that give a sense of history.
“Former Toyo Linoleum Main Building (currently TOLIInterior history museum)”, which is registered as a national
tangible cultural property, participates in the “Hanshin Area
Open Museum Event (Free Entry Fair)” organized by Hyogo
prefecture southern Hanshin residents' center. It conveys
the appeal of cultural facilities to local residents.
This museum has been showed topeople in architectural and constructionindustries in factory tour, also it is open to
the public. We will promote the protectionof cultural properties widely through local
events and promote the handing down ofhistoric buildings.

Contributing to the Solution ofEnvironmental Problems
We are working to reduce the serious marine pollution
and protect the local natural environment.

Cleaning up nearby rivers
River cleaning directly leads to the protection of ecosystems
and landscape improvement by improving the water qualityof rivers, oceans and lakes. Our Itami office regularly
conducts cleaning activities of Mogawa river flowing nearby.
We will continue to contribute to the reduction ofmarine plastics and theimprovement of the naturalenvironment in the region.

Initiatives in Public-Private Collaboration
through the Renewal of Educational
Facilities
Our Group is working to solve local issues through publicprivate partnerships, and is also focusing on co-creating
new social value together with local communities.
One example of such efforts is the renewal of aging
educational facilities in cooperation with Ikoma City (NaraPrefecture) and Toyonaka City (Osaka Prefecture), which also
serves as an actual study of products.
We design and replace flooring materials free ofcharge, then we study how aging affects the products
continuously. These data is made full use of productdevelopment.
We will continue to promote“initiatives that benefit both public
and private sectors” and contributeto improving the educational
environment and solving regional
issues through interior materials.

Medical support activities for developing
countries
We are working on support activities to expand medicalcare for people around the world.

Eco-cap campaign for plastic bottles
We are working on the Eco-cap campaign to supply thevaccines to children in developing countries. Starting thisactivity since FY2021, we have donated total of 34,615
plastic bottle caps, equivalent tovaccines for 40 persons. We willcontinue to contribute to medical
assistance.

T O L I C S R R e p o r t 2022

28

Governance
CSR
PolicyGovernance

Recognizing the importance of corporate ethics, we aim to achieve sound and highly transparent corporate
management by actively promoting the creation of systems to ensure the effectiveness of governance.
• Strengthening Sound Governance → P.29
• Thorough Compliance → P.30

Strengthening Sound Governance

Our Basic Approach to Corporate Governance• We will respect the rights of our shareholders, ensure their equality, and strive to create an environment for appropriate
exercise of rights.
• We will strive for appropriate cooperation with various stakeholders, including customers, employees, and local communities.
• We will strive to ensure management transparency through appropriate information disclosure (including non-financial
information) and dialogue with shareholders.
• We will strive to improve the effectiveness of corporate governance by clarifying the roles and responsibilities of the boardof directors and auditors (the board of auditors) and utilizing highly independent outside directors and Audit & Supervisory
Board Members.
Corporate Governance Structure (As of the end of June 2022): Inside

Audit

Appointment/Dismissal

Board of Directors*1 6 persons

50% 50%TO L I C S R R e po r t 2022

• Others (frequency of meetings, etc.)

Accounting Auditor

Audit

Numbers of committee meeting
FY2018FY2019FY2020

FY20213

3

3

3

Summary of Analysis and Evaluation Results

Specific Agenda

The board of directors is operated appropriately, including
the above evaluation indicators.
Issues and initiatives for improvement
Issue: Need more recognition by outside directors on
Company’s businessInitiatives to improve:• Composition of board members, expected business field
to each director, skill matrix, etc.

Compliance Training

Executive Officers

Operational
Departments• Operational status of the nomination and compensationcommittee• Policies for the election and retirement of directors,
executive officers and corporate auditors, and proposals
for each candidate (including reappointment)• Appointment and removal of executive officers(directors and executive officers)• Succession plan of the representative director and thepresident (Successor Plan)• Items related to the compensation system for the board
members and executive officers (including, but not limited
to, the composition, individual compensation, evaluation
method, bonus amount, calculation standards, etc.)

In promoting our business activities, we must act in accordance with corporate ethics, including respecting laws andregulations as well as social norms. In other words, it is essential to ensure thorough compliance. We believe it is importantto act in a manner that resonates with society in a legal and ethical manner. To ensure thorough compliance, we haveestablished a system to promote compliance, including the allocation of legal and internal audit departments. We are also
continuing to raise awareness of compliance among group officers and employees by conducting compliance training andensuring thorough understanding of TOLI Group Code of Conduct.

Representative Director

Audit Department• Provision of information to directors and auditors

Thorough Compliance40%*2 Apart from the committee members,
2 outside auditors attend as an observer.

Committee of
Executive Officers

Head: President Motohiro Nagashima
Chairman: Full-time auditor Jun Suzuki
Members: Outside director Eri Yokota, Chikako Sekine,
Hidenobu Fujii
Observer: Outside auditor Taku Morikawa, Teruo Watanuma• Deliberation of proposals• Regular discussions on company-wide issues, etc.

50% 50%Appointment/
Dismissal• Composition and number of people• Multiple discussion on important matters

Nominating and Compensation
Committee*2 5 persons

60%

29

In order to enhance the transparency and objectivity of the processof determining matters related to the personnel and reward
systems for board members, we have established and operate thenominating and compensation committee, which consists of thefollowing members as advisory bodies to the board.

• Implementation of advance briefings to outside directors
and auditors as necessary

Appointment/Dismissal*1 % of female: approx. 33%

Management meeting 8 persons

To improve the functioning of the board of directors, weannually analyze and evaluate the effectiveness of theboard of directors as a whole, based on the opinions ofoutside officers.
This is done by discussions at the board of directors’
meeting on the composition and operation of each director,
including the self-evaluation of each individual director.

• Enhancement of materials for the board of directors andthorough advance distribution: Outside

Shareholders Meeting

Board of Auditors 4 persons

Establishment and operation of the Nominating
and Compensation Committee

Principal performance indicators

To achieve sustainable growth and increase corporate value over the mid to long-term, we regard the strengthening ofcorporate governance as one of our most important management issues. We will work to build a management organizationthat can simultaneously improve decision making speed of management and strengthen auditing and control functions,with the aim of further improving the effectiveness of corporate governance.

Appointment/Dismissal

Improving the Effectiveness of the Boardof Directors

Every year, in order to raise the awareness of complianceamong our employees thoroughly, we conduct
antimonopoly law training for the directors and sales
managers, as well as hierarchical compliance training for
newly-promoted and new employees.

Formulation and Dissemination of Code of
Conduct and others
We have established the “TOLI Group Code of Behavior” andthe “TOLI Group Code of Conduct” as a basis for fostering
a common sense of values among officers and employees.
We are working to disseminate the Code by requiring the
distribution and carrying of pamphlets containing thesecharters, and by conducting annual readings.

T O L I C S R R e p o r t 202230

B oard of Directors

Governance
CSR
PolicyGovernance

Board of Directors and Auditors

Risk Management

Directors

Risk Management System and BusinessContinuity Plan

Motohiro Nagashima

Eri Yokota

April 1982		 Joined the Company
April 2003		 General Manager of Corporate Planning
Department
June 2007		Executive Officer, General Manager ofManagement Planning Department andHuman Resource Department
June 2008		 Director of the Company
April 2009		 Director, Sales Senior General Manager
April 2012		President and Representative Director (current position)

February 1997 Doctor of Keio University (Business
Administration)
April 2005		Professor, Faculty of Business andCommerce of Keio University (current
position)
June 2014		 Director of the Company
June 2014		 Outside Director of Idemitsu Kosan Co.,
Ltd.

Based on “Risk Management Basic Policy” and “RiskManagement Action Guidelines”, we have established thenecessary systems for risk management. Various risks
related to operations are managed appropriately,
including the establishment of regulations by eachdepartment in charge.
We strive to establish and operate a system by setting
regulations and organizational structures for responding to
the event of a major accident, disaster, or scandal.
In FY2021, in addition to fire drills and inspections ofstockpiles, we reviewed our disaster prevention manuals
and published news. related to disaster prevention.

President and Representative Director

Hirofumi Amano

Director and Senior Managing Executive Officer

FY2021 fire drill (Itami office)Information Security

April 1984		 Joined the Company
April 2005		General Manager of Planning andPromoting Division
April 2009		General Manager of Planning andMarketing Department
April 2011		General Manager of Floor Development
Department
April 2012		 Executive Officer, General Manager of
Floor Development Department
June 2015		 Director, General Manager of Floor Development Department
April 2016		Director, Senior General Manager of manufacturing headquarters
April 2018		Managing Director, Senior General Manager of manufacturing
headquarters
April 2021		Director and Senior Managing Executive Officer, Senior General
Manager of manufacturing headquarters (current position)

Masayuki Hashimoto
In recent years, damage caused by cyber attacks has become increasingly serious. The importance of cyber security isgetting to be more and more important. In such a situation, one of our important challenges is to minimize these risks that
affects our business continuity.

Cyber Security Measures
As the methods of cyber attacks have changed andbecome more complicated year by year, our Group is not
only focusing on defending them, but also establishing asystem to quickly discover and deal with unknown threats
with the assistance of external experts.
Specifically, we have been implementing measuresagainst unauthorized access from outside the company,
computer anti-virus measures, anti-spam email measures,and web browsing restrictions.

Director and Managing Executive Officer
April 1983		 Joined Nissho Iwai Corporation (now:Sojitz Corporation)
April 2009		 General manager of Osaka Chemical
Department, Chemical Headquarters ofSojitz Corporation
April 2016		 Deputy Senior General Manager, Chemical
Department of Sojitz Corporation
April 2018		 Advisor of the Company
June 2018		 Director of the Company
April 2019		 Director, General Manager of Global Department
April 2021		 Director and Managing Executive Officer, General Manager of
Global Department
April 2022		
Director and Managing Executive Officer, General Manager of
Global Department and Climate Change Response ProjectManager (current position)

Outside Director

Chikako Sekine
Outside Director

April 1972		 Joined Shiseifo Yamagata Sales Co., Ltd.
April 2012		 Executive Officer of Shiseido Company,
LimitedApril 2014		 Managing Executive Officer of Shiseido
Company, Limited
January 2016		 Advisor of Shiseido Company, Limited
February 2016 Outside Director of E-Support Link Co.,Ltd.
February 2018 Representative Director of B Mind Co., Ltd. (current position)
June 2018		 Outside Director of Nippon Valqua Industry (now: Valqua Ltd.)(current position)
May 2019		 Outside Director of UNY-FamilyMart Holdings Co., Ltd.
August 2019		 Outside Director of Takara Printing Co., Ltd (now: TAKARA &COMPANY) (current position)
June 2021		 Director of the Company (current position)

Hidenobu Fujii
Outside Director

April 1979		 Joined Sanwa Bank, Ltd.
June 2006		 Executive Officer of Tokyo-Mitsubishi UFJ,
Ltd. (now: MUFG Bank Ltd.)May 2009		 Managing Executive Officer of MUFG Bank
Ltd.
June 2010		 Managing Director of MUFG Bank Ltd.
June 2013		 President of Mitsubishi UFJ Research andConsulting Co., Ltd.
June 2017		 Director and Vice Chairman, Hitachi Zosen Corporation
June 2021		Director of the Company (current position)
August 2021		 Outside Auditor of Nakakita Seisakusho (current position)

Auditors
Jun Suzuki

Information Security Training
We are working on raising the awareness of information
security of each employee with such activities; Establish
information security policy and 10 of information security
measures, hierarchical IT training, post IT training news
and targeted threat mail training etc.

Taku Morikawa

Auditor & Supervisory Board Member

Outside Auditor & Supervisory Board Member

April 1980		 Joined the Company
July 2001		 General Manager, Promotion of IT
Department
April 2007		 General Manager, Accounting and Finance
Department
April 2009		 Executive Officer, Deputy General
Manager of Administration Headquarters
June 2011		 Director, Deputy Senior General Manager
of Administration Headquarters
April 2013		 Director, Senior General Manager of Administration
Headquarters
April 2015		 Managing Director, Senior General Manager of Administration
Headquarters
April 2018		 Senior Managing Director, Senior General Manager of
Administration Headquarters
April 2021		 Director, Assistant to the President
June 2021		 Auditor (current position)

October 2001		 Lawyer Registration
February 2005 Manager of Masahiko Takimoto Law
Office (now: Hyogo Law Office) (current
position)
June 2015		 Auditor of the Company (current position)

Harunobu Ebe

Teruo Watanuma

Outside Auditor & Supervisory Board Member
August 1984		Certified Public Accountant Registration
June 2005		 Representative Partner of AZSA Audit Firm
(now: KPMG AZSA LLC)
October 2016		Representative, Watanuma CPA Office(current position)
January 2018		 Outside Auditor of Teijin Frontier Co., Ltd(current position)
June 2019		 Auditor (current position)

Auditor & Supervisory Board Member
IT news posted to employees

31

TO L I C S R R e po r t 2022

April 1981		 Joined the Company
April 2003		 General Manager of West Japan Sales
Development
April 2010		 Executive Officer, Deputy Senior General
Manager of Sales Headquarters
April 2019		 Advisor of the Company
June 2019		 Auditor (current position)

T O L I C S R R e p o r t 2022

32

Financial / Non-Financial Data

Financial Data

Non-Financial Data

(consolidated, in accordance with Japanese accounting standard)
Sales/Operating Profit(Million JPY)
100,000

Sales

91,291

Total Asset/Net Asset(Million JPY)

Operating Profit

90,3555,000

94,70185,93180,000(Million JPY)

1,200

80,0003,000

60,0002,000

40,00077,70377,65478,36976,817

79,982

900

878

0

2019

839

37.3

37.8

876

874

38.5

40.0

883

886

(%)

600

20,0002018(Number)

Total Asset

2,382
1,595

2017

Number of Employees
Number of Female Employees(Number of people) Excluding Factory Workers (%)

35.1

3,522

1,991

Net Asset

100,000

4,000

Average Years of Service/Turnover Rate

Number of Employees

88,51360,00040,000(Non-Consolidated)

2020

2021

1,000

35,89436,04236,363

300

30

15

20

10

10

5

0

2017

2018

2019

2020

2021

2017

(FY)

2018

2019

2020

2021

(JPY/share)

Research and Development Investment

Dividends（%）

Dividends Payout Ratio

40

80

30

(Million JPY)

(%)
100

708
60

599

600

654

655

666

80

38.8

35.3

10

10

Female2.4

2017(Hours)

Male

8

100

100

100

100

100

2018

2019

2020

2021

200

0

0

2

2018

2019

2020

Permanent employees

22.2
19.5

2018

2019

2020

2021

(FY)

0

All career-track employees(managers included)

26.4
23.7

21.7

19.7

18.7

20.7
17.3

Target as ofthe end of FY2022:

16.0

17.1

6.9

0

0

0

2017

2018

2019

0

2017

2021 (FY)

20

20

(FY)

3

3.1

2.7

25.6

400

20

4

2.1

10

8

5

12.8

12.8

15.4
13.0

30

13

0

2017

13.0

16.4

16.2

40

24.9
10

40

14.3

Average Monthly Overtime Work Results and Targets

60

45.8
20

5.0
15.2

• Average years of service: Applicable to permanent employees at the end of FY.
• Turnover rate: Applicable to permanent employees excluding mandatory retirement andloan to the Group and transfers. Number of permanent employees leaving the company
during the FY / Number of permanent employees at the beginning of the FY x 100*1 Source: Ministry of Health (Japan), Labour and Welfare, Basic Survey of Wage
Structure, data of 2021

Maternity/Paternity Leave Taking Rate

800

67.9

15.6

0

0

(FY)

• The number of employees: excluding those loaned from the Group to outside,
including those loaned from outside to our Group.

Dividends/Dividends Payout Ratio

Turnover rate (%)

Average Years of Service: Female

1

0

(FY)

Average Years of Service: Male

20 (Reference: Average working years in statistical surveys = male:13.4, female:9.3, FY2021)*1 6

38,28538,08720,0000(Years)

40

0

2020

2021

2017

(FY)

2018

2019

2020

2021

2022

(FY)

• Overtime work = Overtime hours in working days + working hours in holidays

Capital Investment

EBITDA

Number/Ratio of Female Managers(Million JPY)

(Million JPY)

(Number)

4,000

6,000

30

3,000

3,805
3,094
2,685

5,000

3,064

5,140

4,000

2,383

9.8
4,086

3,740

3,832

8.5

8.6

19

19

20

3,000

2,000

(%)

Number of female managers
Ratio of female managers*2

5,059

21

10.3
22

Total Sales Number

11.0
23

11.5

(m2)

Total sales number of carpet tile “GA100” series

12

Exceed200 million m2

40 years after launching

24
8

Exceed

2,000

10

4

0

0

100 million m2

1,000
1,000
Launch
0

0

2017

2018

2019

2020

2021

(FY)

2017

2018

2019

2020

2021

(FY)

2017

2018

2019

2020

2021

2022

(FY)

1982

2007

2022

(FY)

• Data: as of the end of June, each FY*2 Percentage of female employees in management positions

33

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T O L I C S R R e p o r t 2022

34