2022

Meiden Group Sustainability

CONTENTS■ Corporate Governance

002

CONTENTS

003

The President s Commitment

186

Corporate Governance005

Sustainability Management

208

Risk Management

011

Identiﬁcation of Materialities

219

Compliance019

The Approach to SDGs

225

Dialogues with Shareholders and Investors■ Environment

227

Corresponding to COVID-19 infection

028

Promotion of Strategic Environmental Management

230

Evaluations from External Bodies

039

Environmental Management

236

Editorial Policy

048

Product and Service Initiatives(Expand businesses that contribute to the environment)

239

GRI Standards Content Index

053

Product Initiatives(Promote environmentally conscious design)

261

SASB Content Index

057

Product Initiatives(Management of chemical substances in products)

059

Climate Change069

Disclosure based on TCFD recommendations

079

Prevention of Pollution and Eﬀective Utilization of Resources

084

Water Resources089

Biodiversity095

Promotion of Environmental Communication

098

Foster Environmental Awareness

101

Overview of Environmental Impacts by Our Business Activities

102

Environmental Impact Data (FY2021) From the Four Main
Manufacturing Sites (Domestic Manufacturing Sites)

106

Third-Party Veriﬁcation

108

Issue of Green Bonds■ Social
116

Product Responsibility

130

Supply Chain Management

140

Human Rights

143

Labor Practices

161

HR Development

168

Occupational Safety and Health179

Community

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Meiden Group CSRHome Sustainability

The President’s Commitment

Sustainability

The President’s Commitment

We have been caught up in the great upheaval engulfing the world, which has been
exacerbated by the COVID-19 pandemic. As with global environmental problems, there is anincreasing number of medium to long-term issues that must be dealt with without delay. With
that in mind, we have conducted various internal discussions concerning how we should
develop our businesses as the Meiden Group.
Firstly, we aim to realize a world where people live in harmony with nature and can pursue theirown happiness. Against that backdrop, we described our ideal society using the following threepoints.
A Resilient Society Where Humans Live in Harmony with Nature
A Society that Feels Safe, Prosperous, and Exciting
A Society Where Different Communities and People Can Coexist
In order to realize this ideal society, the Meiden Group held multiple discussions about creating
long-term value, to establish “work to build a new society through integrity to the earth, society,and people, and through the power of co-creation” as our 2030 Ideal State of Being/Vision,
with an eye to the worldview of 2050.
It is essential for us to undergo a number of changes in order to achieve our Ideal State ofBeing/Vision. We are now facing the issue that society is undergoing structural changes and wemust respond to social issues as they become apparent. It is extremely important to beproactive and work together with like-minded compatriots. Therefore, I believe we should
remember the DNA of social contribution and spirit of innovation that Hosui Shigemune had
when he founded Meidensha, as well as the honesty and responsibility to customers that has
supported social infrastructure for more than 120 years since then, and take on the challengeof creating a new society by expanding and strengthening our position, in order to be an
attractive company and organization.
In order to achieve our Ideal State of Being/Vision, we have articulated our specific form androle as a “sustainability partner” for the achievement of people’s happiness and a sustainableglobal environment.
This label of “sustainability partner” has two meanings. The first is a partner as a member ofsociety to achieve a sustainable global environment, while the other is our role as a partner tosupport various stakeholders such as employees, shareholders, investors, and customers, toachieve sustainability.
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We will contribute to the solution of our customers’ issues, support the realization of asustainable society, and fulfil our responsibility as a company that is a member of a sustainable
society. This is what we define as the role of a “sustainability partner.”
I am proud that each and every Meiden Group employee sincerely tackles the issues of ourcustomers and works with the pride that they are supporting social infrastructure andbenefiting society.
In order to realize an affluent and comfortable future society, I sincerely hope that the Meiden
Group continues to support public infrastructure in 100 or 200 years from now and daringly
accepts the challenge of creating new value, while continuing the social contribution andsincere attitude that are our corporate DNA.
Representative Director & President and Executive Officer
Takeshi Miida

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Meiden Group CSRHome Sustainability

Sustainability Management

Sustainability

Sustainability Management
The Meiden Group’s Sustainability Management

Currently, the social environment in which the Meiden Group operates, continues to undergo
drastic changes, such as the impact of accelerating climate change since the industrial
revolution, digitalization through technological innovation, and diversification of values andlifestyles of people.
Amid such profound social changes, we have depicted the Meiden Group’s ideal society of2030 with an eye to the worldview of 2050, by combining Meidensha’s DNA of “integrity,”“responsibility,” and “social contribution,” which are our strengths since the establishment of theGroup, with the DNA that we must not lose of “innovative spirit” and “independent mind.” This
ideal society is “a resilient society where humans live in harmony with nature,” “a society thatfeels safe, prosperous, and exciting,” and “a society where different communities and people
can coexist.” With such a mindset, the Meiden Group has set its vision of an ideal state ofbeing, which is to be a sustainability partner that “works to build a new society through integrityto the earth, society, and people, and through the power of co-creation.”
In order to contribute to the creation of a new society through business activities, we will focus
on the four areas of “renewable energy,” “sustainable infrastructure,” “green mobility,” and“smart industry,” based on the infrastructure-related technology and know-how that we havedeveloped over many years, and the trust and results of our customers. The values that mustbe held by everyone who works in the Meiden Group are “sustainability,” “diversity,” “integrity
and sense of responsibility,” and “future orientation” to achieve this society. We will apply thesefour values to our day-to-day activities, and under Medium-term Management Plan 2024, which
commenced in FY2021, the Meiden Group aims to take a “Big Jump” in our growth and achievesustainable corporate growth, by promoting management focused on ESG and sustainability.

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Meiden Group CSRSustainability Partner

We defined the term “Sustainability Partner” to specifically articulate the Meiden Group’s idealform.
A “Sustainability Partner” fulfils dual roles to realize the Meiden Group’s goals of achieving
people’s happiness and a sustainable global environment. The first is a partner as a member ofsociety to achieve a sustainable global environment. The other indicates our role as a partner toaccompany various stakeholders such as employees, shareholders, investors, and customers,to achieve sustainability.
Our main contributions include contributing to carbon neutrality, which enables environmentallyconsiderate lifestyles of people and industry and another is wellbeing, the idea that focuses onbuilding a society based on people’s happiness.
Firstly, contributing to “carbon neutrality” requires supporting a carbon-free society based on
environmentally considerate products, as well as, making the Meiden Group shift toward
becoming carbon-free.
Secondly, wellbeing requires the provision of infrastructure and services for safe and secure
lifestyles, the creation of a society with a feeling of connection and diversity, and the provisionof excitement to society by the Meiden Group taking the lead in depicting a new world.
The role of a “Sustainability Partner” combines these two aspects, and fulfilling this role throughour business activities will lead to the realization of our ideal society.

Sustainability Management Promotion System

Under Medium-term Management Plan 2024, which launched in April 2021, we established the
ESG Management Promotion Committee, led by the President, and the ESG Management
Promotion Office, which is mainly responsible for implementation, and promoted activities as
per the following “FY2021 ESG Management Promotion Committee Activity Record” as apromotion framework that focuses on sustainability management.
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Meiden Group CSR

Subsequently, in April 2022, we updated Medium-term Management Plan 2024, and we arereviewing our structure to enable specific implementation of the Sustainability Management
Policy.
It is now a two-tiered structure, comprising the Sustainability Management Strategy Committee,
which is chaired by the President, and the Sustainability Promotion Committee, which is chairedby the officer in charge, where each department is able to independently implement measures.
Based on the Sustainability Management Policy, content of the practice is incorporated asaction plans into our unique reform improvement activities known as the Meiden Advantage
Program (MAP), and these activities are promoted through regular follow up of promotion andresults, and through the PDCA cycle, while improving awareness of sustainability management
promotion throughout the Meiden Group.
ESG Promotion Structure (FY2021)

Themes discussed by the ESG Management Promotion Committee (FY2021)
1st meeting
Outline and processes of the ESG Management Promotion Committee
2nd meeting
Dialogue with employees and penetration of awareness of the vision
Current issues with each value
3rd meeting
Updating all-company policies
Environment (progress of the Environmental Vision)
Stakeholder engagement (NPS)
4th meeting
Dialogue with employees and penetration of awareness of the vision
Environment (green products and water conservation)
Diversity (company culture)
Future direction (toward producing an innovation theme)
5th meeting
Awareness penetration dialogue (internal development content)
Supply chain initiatives
Diversity (employment of people with disabilities)
6th meeting
Internal development KPI of each measure
Internal awareness penetration dialogue
Environment (carbon-neutral declaration and green products)
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7th meeting
8th meeting

9th meeting

Environment (RE100 and carbon-neutral declaration)
Internal awareness penetration dialogue (briefings and group visits)
HR strategy
Environment (TCFD, green products, and water conservation)
Stakeholder engagement (NPS)
Revision of the Corporate Code of Conduct
Progress of innovation
Environment (TCFD)
Stakeholder engagement (NPS)Materialities

Sustainability Management Promotion System (FY2022)

Meiden Group Initiatives for Sustainable Development Goals(SDGs)At the UN Sustainable Development Summit in 2015, the world adopted common goals known
as the Sustainable Development Goals (SDGs)*. The SDGs are challenges the international
community is addressing over the 15 years from 2016 to 2030.
The targets of the SDGs are very compatible with the ESG Vision and business activities of the
Meiden Group. They include many areas where we can contribute to a solution withtechnologies and expertise we have cultivated over the years. Thus, to really learn and takeadvantage of the opportunities and challenges presented by the SDGs, we laid out the effects
that our business activities have on the environment and society. This process considered theentire value chain and issues specific to the countries where we do business. It even included
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Meiden Group CSR

any negative impacts of our business activities.
The Meiden Group will continue to pursue manufacturing that contributes to society, achievesustainable value creation and contribute to the solution of social issues, including those posedby the SDGs.
* Sustainable Development Goals (SDGs): Seventeen goals incorporated into the 2030 Agenda
for Sustainable Development adopted by world leaders at the United Nations Sustainable
Development Summit in September 2015. Based on these new goals—universally applied to all
nations–each nation will end all forms of poverty, combat inequality, and take steps to address
climate change while ensuring that no one is left behind over the next 15 years.
The Approach to SDGs

External Support Initiatives
Initiative
CDP

Task Force on
Climate-related
Financial
Disclosures(TCFD)
Japan Climate
Initiative (JCI)
United Nations
Global Compact(UNGC)

OutlineDate ofagreement/participation
March 2017

An initiative begun by a coalition of major
institutional investors around the world. It
calls on the world’s enterprises to disclose
their climate change strategies (risks andopportunities) and their GHG emissions,among other information.
An initiative established by the Financial
June 2019
Stability Board to encourage disclosure of
information about climate-related risks andopportunities.

A network of diverse non-state actors such December 2020
as corporations, municipal governments,groups, and NGOs, that actively work to
combat climate change.
A global framework that sets 10 principles September 2022 (TBC)
implementation relating to protecting
human rights, eliminating inappropriate
labor, attending to the environment, andpreventing corruption, in order to achievesustainable growth.

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Group Membership Credentials● KEIDANREN (Japan Business Federation)● The Japan Electrical Manufacturers' Association (JEMA)● The Institute of Electrical Engineers of Japan (IEEJ)● Electric Technology Research Association● The Japan Electric Association● The Japan Society of Mechanical Engineers

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Meiden Group CSRHome Sustainability

Sustainability

Identification of Materialities
Background of identification

We are currently surrounded by drastic changes in the social environment in which we operate,
such as the impact of accelerating climate change since the industrial revolution, digitalization
through technological innovation, and diversification of values and lifestyles of people.
In the midst of such social upheaval, we have depicted our ideal society of 2030 as “a resilient
society where humans live in harmony with nature,” “a society that feels safe, prosperous, andexciting,” and “a society where different communities and people can coexist,” by combining
Meidensha’s initial DNA of “integrity,”“responsibility,” and “social contribution,” which are our strengths, with the DNA that we must
not lose of “innovative spirit” and “independence mind.” With such a mindset, the Meiden Group
has set its ideal state of being for 2030, which is to be “a sustainability partner that works tobuild a new society through integrity to the earth, society, and people, and through the powerof co-creation.”In these circumstances, in FY2021, we developed Medium-term Management Plan 2024, andidentified major issues (materialities) in the plan by backcasting from our 2030 ideal state ofbeing.
The Meiden Group will embrace the challenge of creating a new society and work toward therealization of a sustainable global environment and happiness for all people by solving
materialities that have been identified.

Major Issue (Materiality) Identification Process
STEP 1

Management of Major Opportunities and Risks for the Meiden GroupWe arranged societal changes by 2030 and impact on business management and identified
constituent factors through PEST analysis.
We drafted a longlist (369 societal changes and issues in total), including the aforementioned
constituent factors using metrics of international standard-setting organizations and items
set by ESG evaluation institutions, to avoid omissions.
We listed 369 societal changes and issues in total, and arranged them according toopportunities and risks from the perspective of the Meiden Group’s ideal state of being.

Referenced Frameworks and Guidelines, etc.
SDGs
GRI standards

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Meiden Group CSRSASB standards
ISO26000
ESG evaluation items required by ESG evaluation organizations
The Ten Principles of the UN Global Compact
STEP 2

Evaluation of Importance

We conducted an overall evaluation of the importance of major risks and opportunities
according to the two axes of the Meiden Group and Stakeholders.
Evaluating department
Evaluation items
Meiden Group Corporate Policy Planning FY2030 impact on operating income,Group, etc.
likelihood of occurrence, and level of
response
Stakeholders Business units that deal To what extent do stakeholders consider thewith stakeholders
issue to be important

Evaluation of Importance to the Meiden Group and Stakeholders

STEP 3

Identification and Determination of Materialities

We have gathered and designated items that we have deemed are very important
opportunities or risks as six materialities.
Designated materialities are discussed and determined by the Sustainability Management
Strategy Committee, the Executive Officers’ Meeting, and the Board of Directors.
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Gathering and Identification of Six Materialities

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Meiden Group CSRMaterialities Relating to Value Creation
Materialities
Reasons forthat have been Identification as a
identified
Materiality
Contribution to The Meiden Group
carbon neutrality operates many
decarbonization
businesses, but there
is also anenvironmental impact
from manufacturing.
It is essential to launcha response to thesignificant impact on
operations.

Outlook

Related SDGs

Climate change isaccelerating, and the
movement to reach theParis agreement target(1.5°C) is gaining
momentum.
Markets relating todecarbonization are
expanding, and it isessential to respond tolegal restrictions
relating to carbon taxes,
etc., and prepare forincreasing large-scaledisasters.
Realization of a The Meiden Group
Review of the state ofsafe, secure, and operates many
local infrastructure will
convenient
relevant businesses.
proceed due to thesociety
On another front, it is declining birthrate andessential to respondaging population,
as business continuity difficulties with local
risks may arise.
government finances,
and aging facilities inJapan.
Digitalization is
expected to proceed,
leading to increased
semiconductor-related
demand and increased
demand for reduced
manpower andautomation in theindustrial sector.
Innovation
It is extremely
Existing social systems
through coimportant to embrace have reached the end
creationthe challenge ofof their usefulness, anddeveloping nextglobal-scale social
generation technology, issues have arisen,and create and furnish including climatesocial value along with change issues.
partners that share
These issues cannot be
the same conviction.
solved by any individualorganization, so it isnecessary to enter
partnerships to
14

Meiden Group CSRMaterialities
that have been
identified

Reasons for
Identification as aMateriality

Outlook

Related SDGs

embrace the challengeof solving them.

Materialities Relating to Our Business BaseMaterialities
Reasons forthat have been Identification as a
identified
Materiality
Creating
Human resources arecorporate culture the source of thethat gives lively Meiden Group’s
workplace and strength. Drawing out
growth forand combining thediverse human abilities of eachresourcesindividual is essential
for value creation.

High-quality
Manufacturing
and Value
provision

Sincere andresponsible
business
operation

Outlook

Related SDGs

Values will diversify andwork-styles will change.
There is a demand for a
corporate atmospherethat allows individuals todisplay their abilities
and work withenthusiasm.
As a precursor to this, it
is essential for the
workplace environment
to allow employees tobe physically andpsychologically healthy.
The Meiden Group’s
The Meiden Group’s
strength of insistence business fields relate toon quality is essential infrastructure andnot only to deliverindustrial
products and systems, underpinnings, and it isbut also provide
essential that we deliver
subsequent services. high-quality products
and systems without
defects.
As society changes, thevalue of infrastructureand equipment that “willnot shut down” under
any circumstances willremain constant.
It is important to
We have an obligation
respond to theto society to always
changing
conduct corporate
requirements ofmanagement withsociety and promote sincerity, as we receive
management that we capital from society,can be proud of, with provide value to society
the core of the Meiden in conjunction with ourGroup’s strengths of stakeholders.
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Meiden Group CSRMaterialities
that have been
identified

Reasons for
Identification as aMateriality
sincerity andresponsibility.

Outlook

Related SDGs

STEP 4

Establishment of Targets and KPIs

Based on our materialities, we are developing strategies and implementing measures underMedium-term Management Plan 2024.
With regard to implementation of measures, we establish KPIs to the extent possible andconduct internal progress management.
We will regularly review materialities and KPIs.

Materialities

Major
Medium-term Management
opportunities andPlan 2024
risks

Contribution [Opportunities]
to carbon
Expansion ofneutrality
markets forbusinesses that
contribute totheenvironment[Basic Policy 1] Realization ofhigh-quality growth
1. Expansion of growthbusinesses
Expansion of EV-related,
renewable energy business,and environmentallyconsiderate products, andhigh profitability[Risks]Increased costs
due to carbon
taxes, etc.
Risks fromfrequent storms
and floods[Basic Policy 2] Promotion of
Decline insustainability managementcompetitivenessPromotion of
due to latedecarbonization within the
response
Company

Realization of [Opportunities]
a safe, secure,Growing needandfor replacement[Basic Policy 1] Realization ofhigh-quality growth
1. Expansion of growthbusinesses
16

Major KPIs and targets( ) are externally disclosed targets
for FY2024

EV business net sales(47.0 billion yen)
Renewable energy
business net sales
Environmental
contribution (10.00 million
tons)
Scope 3 reduction rate
(6% reduction comparedto FY2019)
Proportion of green
products
Number of super green
products
Scope 1,2 reduction rate
(6% reduction comparedto FY2019)

Motor Drive business net
sales

Externallydisclosed
targets for
FY2025
onwards
EV businessnet sales(100.0 billion
yen inFY2028)
Scope 3
reduction
rate (15%reductioncompared to
FY2019 in
FY2030)

Scope 1 and2 reduction
rate (30%reductioncompared to
FY2019 in
FY2030)
Achievementof RE100(FY2040)
Achievementof carbon
neutrality(FY2050)―

Meiden Group CSRMaterialities

Major
Medium-term Management
opportunities andPlan 2024
risks

convenientsocietyandmaintenance ofinfrastructure
Rebuilding local
infrastructure
Growing needforsemiconductors
due todigitalization
Expansion ofoverseas
markets
Creation ofadded value
through digitaltransformation（DX）
Growing needfor labor
reduction andautomation

Expansion of motor driveand semiconductor-related
businesses
2. Enhancement ofcompetitiveness of earningsbased businesses
Expansion of themaintenance business
Promotion of public private
partnerships and provisionof design solutions

Major KPIs and targets( ) are externally disclosed targets
for FY2024

Semiconductor-related
businesses net sales
Maintenance business net
sales (\41.6 billion)
Overseas net sales (\73.0
billion)Externallydisclosed
targets for
FY2025
onwards

3. Improvement of profitabilityof overseas businesses
Rebuilding and improving
profitability of overseas
businesses[Risks]Decline incompetitivenessdue to late
response
Innovation [Opportunities][Basic Policy 3] Promoting
through coambidexterity management
Growing new
creationneeds due toCreation of new businesssustainability
themes and promotion ofand ESG trends
commercialization throughco-creation
Advancementof newDevelopment of andtechnologie
furnishing society with
next-generation technology[Risks]Decline incompetitivenessdue to late
response
Creating[Basic Policy 2] Promotion of[Opportunities]
corporate
Improvement ofsustainability management
culture that productivity
Implementation ofgives lively through highmeasures to improve
workplace and engagement ofengagement
growth for employees
diverse human
Expansion of diversity andGeneration of
resources
inclusion measuresinnovation by
Expansion and fulfillment
leveraging
of professional
diversity17

New businesses net sales(\5.0 billion)
Number of innovation
themesNumber of innovation
personnel―

Improvement rate of
employee engagement
metrics (10%improvement compared to
FY2021)
Female officer class:number of inside officers(at least 1)
Number of non-Japanesepresidents of local

Femaleofficer class:number of
insideofficers (atleast 3, of
which 1 isan executive
officer, in
FY2030)
Meiden Group CSRMaterialities

Major
Medium-term Management
opportunities andPlan 2024
risks[Risks]Outflow of
personnel orinsufficientpersonnel due
to low
engagement
Worse
employee healthdue to factors
includingoccurrence ofindustrial
accidents andpandemics

High-quality [Opportunities]
manufacturing Creating safe andand value
securecreation
infrastructure andindustrial
underpinnings[Risks]Loss ofcustomer trustor orders byreason of lower
quality
Sincere and [Risks]
responsible
Infringement ofbusiness
human rights
operationby the Meiden
Group orsuppliers
Information
security risks
Insufficientcompliancemeasures

Major KPIs and targets( ) are externally disclosed targets
for FY2024

Externallydisclosed
targets for
FY2025
onwards
Number of
nonJapanesepresidents
of localsubsidiaries(at least 5,of which 1 isan executive
officer, in
FY2030)development programs
Enhancement ofoccupational health andsafetyPromotion of healthmanagement

subsidiaries (at least 3)
Total education andtraining expenses
Number of industrial
accidents[Basic Policy 2] Promotion ofsustainability management
Establishment of the
MeidenMonozukuri(Manufacturing)Standards to improve
QCDSE
Enhancement of quality
assurance (QR map,reconstruction of the
Meiden Customer Center,etc.)[Basic Policy 2] Promotion ofsustainability management
Enhancement of
stakeholder engagement
Introduction of respect forhuman rights and humanrights due diligence
Enhancement of
information security andinternal training
Enhancement ofcompliance
Enhancement of corporate
governance

Manufacturing process
metrics (productproduction time,
production time per unit,
units produced perperson,production/manufacturing
lead time)
Number of defects andcost of dealing withdefects (reduced by half
compared to FY2020)―

Stakeholder engagement
improvement rate
Human rights training
attendance rate
Information security
training attendance rate
Compliance training
attendance rate―

* We will continue to consider and scrutinize the selection of measures and specific KPI figures
going forward.

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Meiden Group CSRHome Sustainability

The Approach to SDGs

Sustainability

The Approach to SDGs
Meiden Group Initiatives for Sustainable Development Goals(SDGs)At the UN Sustainable Development Summit in 2015, the world adopted common goals known
as the Sustainable Development Goals (SDGs)*. The SDGs are challenges the international
community is addressing over the 15 years from 2016 to 2030.
The targets of the SDGs are very compatible with the Meiden Group’s ESG Vision and businessactivities. They include many areas where we can contribute to a solution with technologies andexpertise we have cultivated over the years. Thus, to really learn and take advantage of theopportunities and challenges presented by the SDGs, we laid out the effects that our businessactivities have on the environment and society. This process considered the entire value chain
and issues specific to the countries where we do business. It even included any negative
impacts of our business activities.
The Meiden Group will continue to pursue manufacturing excellence that benefits society,create value, and help solve social issues that include those addressed by the SDGs.
* Sustainable Development Goals (SDGs): Seventeen goals incorporated into the 2030 Agenda
for Sustainable Development adopted by world leaders at the United Nations Sustainable
Development Summit in September 2015. Based on these new goals—universally applied to all
nations–each nation will end all forms of poverty, combat inequality, and take steps to address
climate change while ensuring that no one is left behind over the next 15 years.

Status of SDG initiatives
Understanding of SDGs
FY2018• Organize impact areas in countries where
we conduct business and business activities• Arrange related initiatives in accordancewith each SDG• Conduct training for management

Identifying Priority Issues
FY2019• Consideration of the connections between
business activities and SDGs; establishingareas that contribute to the solution of social
issues through our business strategies

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Meiden Group CSREducation for Application of SDGs in Business Strategy andActivities

In FY2018, we invited outside instructors to give seminars about
SDGs (Sustainable Development Goals) for management. In
FY2019, we conducted e-learning for all Meiden Group
employees (including directors and executive officers), for the
purpose of ensuring that all employees understand SDGs andpromoting the spread of environmental projects and newtechnology and new service proposals as the Company’s
Training for management
initiatives.
In addition, at selective training that commenced in FY2019 for conducted in fiscal 2018
the purpose of developing young employees into the next
generation of managers, we consider social issues such as SDGs,
establish programs to create business strategies, and approachcontribution to the solution of social issues and share ideas toincorporate SDGs in management and individual duties, throughbusiness strategies that are not swayed by past business.

The Meiden Group’s Approach to SDGs

As a heavy electric equipment manufacturer supporting the future of social infrastructure, theevolution of industry, and achieving sustainable growth and development, the Meiden Group
contributes to the Seventeen goals of the SDGs through all business activities. Furthermore, inorder to continue contributing to the SDGs in the future, it is necessary to seriously address
the expectations of society and accurately grasp key social issues as important issues for theCompany. To do this, we have established areas that contribute to solving social issues throughbusiness strategies.
The Meiden Group will continue to actively challenge itself to create new technologies and newvalue, in order to contribute to the realization of a vibrant and comfortable future society.

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Meiden Group CSR

Goal

Relevance Major Business Activities Contributing to Solution★
・T&D business and railway system business in Southeast Asia
(Thailand, Indonesia, etc.): Through these businesses, we
contribute to the development of the rail and T&D industries,
increase access to railroads for the impoverished, and help build
resilience★★★
・Workplace safety and health: We actively work to prevent
workplace accidents and harm to health, for example by offering
hands-on safety experience training (to increase sensitivity tohazards) using VR technology within and beyond the Group・We promote management of chemical substances, including at
suppliers
・Automobile testing equipment: We contribute to the spread ofnext-generation automobiles such as electrified vehicles for the
global environment, safety measures, and ensuring freedom of
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Meiden Group CSR

★★

★★★

★★★

★★★

movement for all people
・Electric power/energy: We contribute to electric power supply
stability with, for example, cogeneration systems for medical
facilities
・Water treatment systems: We provide clean water with ourwater treatment plants and contribute to water pollution
prevention with our sewage treatment plants
・We contribute to limiting the spread of infectious diseases
through research and development of a real-time sewer
monitoring system to realize a society that is resilient to infectious
diseases using manhole antennas
・We create positive working environments through considerationof human rights and labor (including fair and equitable
employment and respect for diversity) and workforce training
・By donating school facilities (Thailand) and endowing courses(Thailand and India), we help create educational opportunities foryoung people
・We hold “manufacturing workshops” and science teachingsessions, and support education with internships for university
and technical college students
・We create positive working environments by considering humanrights and labor (including practicing fair employment, honoring
diversity, and giving training on human rights and diversity)
・We promote consideration for human rights and labor at
suppliers by practicing CSR procurement
・We contribute to safe water supplies by providing one-stop
service for water supply and wastewater infrastructure, fromequipment manufacturing to maintenance, inspection,
maintenance management, and operation management. Specificexamples include the power receiving and substation facility andmonitoring and control systems essential to water supply andwastewater infrastructure, cloud services to support operation
management, and flat-sheet ceramic membranes with outstanding
filtering performance
・We help solve the variety of social challenges facing local
governments in Japan, such as population declines and aging
facilities, by developing public-private partnership projects andone-stop services in the water treatment business・We help ensure the stable supply of electric power by
manufacturing, marketing, and providing equipment for
emergency and non-emergency power generation, hydroelectric
power generation, power transmission, conversion, anddistribution and by providing energy solution services such as
smart grids
22

Meiden Group CSR

★★★

★★★

・We help build a carbon-free society by manufacturing, selling,and supplying power generation systems for renewable energy
sources like solar power and small-to-medium size hydro power
・We contribute to the supply of renewable energy and stable
operation through the sale of wind power and the support of wind
power O&M
・We contribute to the electrification of automobiles by
manufacturing and selling motors and inverters for electric
forklifts, PHEVs, and EVs
・We achieve energy conservation by providing energy-recovering
water treatment using anammox and community-based water
treatment systems (developing new aeration air flow rate control)
・We contribute to the reduction of water treatment facility
maintenance costs, energy-saving measures, and carbon
reduction by participating in demonstration experiments for smart
operation of water treatment equipment using ICT and AI
・We practice work style reform and make work more efficient byimplementing RPA*1
・東We give locally-hired staff in Southeast Asia training inspecialized technologies like design, construction, andmaintenance (including quality control and safety management) toimprove comprehensive engineering and support infrastructures
around the world with high-quality engineering services
・We contribute to a stable supply of electric power bydeveloping, marketing, and providing energy solution services
such as smart grids
・With the online smart diagnostic service using IoT, we canprovide appropriate maintenance of social infrastructures and theprevention of serious failures such as power outages
・We help achieve leading-edge technology and contribute to thedevelopment of a prosperous society through technologicalinnovation in semiconductor and FPD manufacturing equipment
components (vacuum capacitors, industrial controllers, pulse
power supplies, etc.)
・We contribute to comfortable water treatment and stabilizationof industrial infrastructure with drainage solutions using methods
such as water treatment systems and flat-sheet ceramic
membranes
・We contribute to technological innovation in the automobile
industry, by developing and selling EV drive components, as wellas test devices for automobile research institutes, universities,
and manufacturers of automobiles and auto components
・We help increase industrial productivity and reduce laborburdens in all industries, including manufacturing, through laborsaving, space-saving, and efficiency improvements in factorytransport using automated guided vehicles (AGV).
23

Meiden Group CSR

★★★

★★★

★★★

・We contribute to technological innovation in the semiconductor,
film, and other industries, by establishing room-temperaturedeposition technology through OER technology*2 using pureozone
・We employ fair employment practices and respect diversity
・Aiming to realize respect for human rights, the Meiden Group
undertakes human rights awareness initiatives throughout theorganization
・We appoint local staff to management positions at overseas
affiliates
・We communicate the principles of CSR (including human rights
and labor) and the Meiden Group’s CSR approach to our business
partners and conduct supplier evaluations
・We promote urban development and help to alleviate traffic
congestion through railroad projects such as KVMRT*3 in
Malaysia and MRT*4 in Singapore
・We contribute to the construction of transportation
infrastructure using overhead contact line inspection equipment
and feeder equipment for electric railways
・We prevent equipment breakdown by diagnosing the early signsof irregularities in large motors, generators, transformers, andswitchgears and make optimal equipment upgrades
・Our elevator hoisting machines and inverters for higher-risecities and barrier-free support (home elevators), and elevator ropetesters reduce inspection time and improve efficiency
・We help make communities resilient to disaster with mobile
power supply cars, building power generators, and otheremergency power generation equipment
・We provide sustainable, inexpensive, and good services forwaterworks through public-private partnerships
・We promote eco-friendly design by making products smaller
and more efficient, controlling chemical content, practicing life
cycle assessment (LCA), etc.
・Through CSR procurement, we promote the management ofchemical substances, consideration for reducing environmental
impact, and response to conflict minerals issues at suppliers
・By implementing a range of initiatives to improve product andservice quality, we improve our development and design quality,
preventing defects, rework prevention, quality control technology
training, and more
・We provide 24-hour support of customer equipment operation(troubleshooting, responding to inquiries, remote monitoring
service)・We develop our workforce to support the provision of highquality products
24

Meiden Group CSR

★★★

★★

★

★★

・We contribute to reduced waste and resource usage byrecycling used epoxy resin molded components at MEIDENCHEMICAL CO., LTD. using the room temperature dissolution
method・We help to build a carbon-free society through our renewableenergy-related business・We provide eco-friendly products andB39:G49
・We installed a solar power generation system at one of ourmajor manufacturing sites (Numazu Works)・Through CSR procurement, we promote the reduction of GHG
emissions at our suppliers
・We help build disaster prevention platforms for local
governments and support disaster prevention through our urban
flooding monitoring service (flash flood countermeasures using
manhole antennas)
・We promote the spread of renewable energy through the wind
power business of M WINDS Co., Ltd. (power generation, powersales, and maintenance)
・We contribute to the reduction of greenhouse gas emissions
through the development and sale of SF6 gas-free vacuum circuit
breakers
・We contribute to the reduction of greenhouse gas emissions
through the development of gas-insulated switchgear (GIS) thatuses naturally-derived gas
・We help prevent marine pollution with ceramic flat-sheet
membranes for advanced wastewater treatment
・Water treatment systems: We provide clean water with ourwater treatment plants and prevent water pollution with ourwastewater treatment plants
・We conduct aquatic organism impact studies in rivers where
sewage treatment water is discharged
・We make effective use of the sludge generated at water
treatment plants
・We reduce the use of printing paper and ink by implementing
managed print services (e.g., increasing the number ofmultifunction printers)・Through consideration for human rights and labor (prohibiting
child labor, prohibiting practices such as corruption and bribery,and providing compliance training), we create a comfortable,
positive workplace
・We communicate the principles of CSR (including prohibitions
on child labor, corruption, bribery, and other acts) and the Meiden
Group’s CSR approach to our business partners and conduct
supplier evaluations
25

Meiden Group CSR

★★

・We support the infrastructure development of developing
nations by delivering equipment through Official Development
Assistance (ODA)・We promote partnerships with local businesses in Southeast
Asia (T&D business, switchgear business, etc.)
・We expand public-private projects by building partnerships withother industry sectors in the water treatment field・We provide sustained water supply service that is both goodand inexpensive through public-private partnerships
・We contributed to the realization a safe and secure watersupply through comprehensive operations in waterworks byestablishing the Gunma Tobu Suido Kigyodan (an amalgamation ofseveral local water services in Eastern Gunma Prefecture)
・In the mobility T&S business, we contribute to the developmentof next-generation mobility in conjunction with the German
company, FEV
・We contribute to the improvement of quality and maximizationof added value throughout product lifecycles, through theaddition of motor analysis and remote monitoring technology to
our motor business in conjunction with Polish company, Elmodis
SP. Z o. o.

*1 RPA (robotic process automation): The use of robots to make work more efficient.
Programming robots to do white color work and other tasks that humans have always done
helps to automate typical, repetitive tasks. By teaching robots a set of rules, it is possible forthem to do work that includes decision-making based on certain standards. Software robots
are being used to automate typical PC operation without changing existing systems.
*2 OER technology: A proprietary Meiden technology that produces hydroxyl (OH) radicals atroom temperature by causing a reaction between high purity ozone and ethylene gas.
*3 KVMRT (Klang Valley Mass Rapid Transit): This urban transit system travels east to west for
51 km across the capital, Kuala Lumpur.
*4 Singapore MRT (Mass Rapid Transit) : Singapore's Mass Rapid Transport System

26

Meiden Group CSRHome Sustainability

Environment

Sustainability

Environment
Promotion of Strategic Environmental
Management

Environmental Management

Product Initiatives (Expand businesses
that contribute to the environment)

Product Initiatives (Promote
Environmentally Conscious Design)

Product Initiatives (Management ofchemical substances in products)

Climate Change

Disclosure based on TCFD
recommendations

Prevention of Pollution and Effective
Utilization of Resources

Water Resources

Biodiversity

Promotion of Environmental
Communication

Foster Environmental AwarenessOverview of Environmental Impacts by
Our Business Activities

Environmental Impact Data (FY2021)
From the Four Main Manufacturing
Sites (Domestic Manufacturing Sites)

Third-Party Verification

Issue of Green Bonds

27

Meiden Group CSRHome Sustainability

Environment

Promotion of Strategic Environmental Management

Environment

Promotion of Strategic Environmental Management
PolicyThe Meiden Group ensures that each employee contributes to the protection of the global
environment and the creation of a prosperous society through their day-to-day work according
to our Basic Environmental Philosophy, and promotes sustainability management to achievesustainable growth of society and improved corporate value.

Basic Environmental Philosophy

The Meiden Group aims to engage in sustainability management and achieve corporate growth
based on the corporate philosophies of “Illuminating a more affluent tomorrow” and “Forcustomer peace of mind and satisfaction” by tackling the issues of adapting to and mitigatingclimate change, recycling resources, and preserving biodiversity, in order to realize asustainable society.

Environmental Policies

1. We promote the development of new products and innovative technologies that contributeto the global environment and strive to develop and design environmentally conscious products
by conducting environmental impact evaluation for the entire lifecycle of our products, frominitial material procurement to final disposal.
2. We strive:- To reduce the environmental impacts from our business activities at home and abroad- To reduce greenhouse gas emissions- To promote the 3Rs (reduce, reuse and recycle)- To reduce the releasing amount of hazardous substances that are harmful to humans and theenvironment
3. We strive to comply with the related environmental laws, regulations, rules and otherrequired matters and establish our internal guidelines. We strive to prevent the pollutions fromour operations at home and abroad and make efforts to protect the environment.
4. After establishing a sustainability management system, we strive to maintain and improve it
through the PDCA (Plan-Do-Check-Act) Cycle and we aim to improve our environmental
performance.
5. We strive to improve all our employees’ understanding of sustainability management andinvigorate environmental contribution activities through environmental education.
The 7th Edition, April 1, 2022

28

Meiden Group CSR

Environmental Vision

The Meiden Group will “contribute to the creation of a sustainable society” through its
businesses in the energy which support social infrastructure and water treatment, as well as its
products, technologies, and services, which it has developed up to this point, while minimizing
the environmental impact of its business activities.
The Environmental Vision identifies realization of “a carbon-free society,” “a circulating society,”and “a society in harmony with nature” as the missions of a 21st-century company, and lists
them as goals. We are working to conduct sustainability management with “human resources
and communication”at its core.
Outline of the Environmental Vision

Activities to Realize Our Environmental Vision

A. Working Toward the Realization of a Carbon-free Society< Reducing greenhouse gas emissions >Reduce greenhouse gas emissions from business activities
Contribute to customers’ efforts to become carbon-free through our products and services

B. Working Toward the Realization of a Recycling Society< Promoting the 3Rs >29

Meiden Group CSRPromote re-use of resources and water in business activities
Contribute to construction of sustainable infrastructure through business

C. Working Toward the Realization of a Society in Harmony with Nature< Conservation of natural resources >Use land in an environmentally considerate manner, minimize impact on ecosystems, andpreserve biodiversity
Prevent contamination by harmful chemicals and ensure water safety

D. HR and Communication< Professional development and communication >Improve environmental literacy to promote research, development, and manufacturing
Promote two-way communication and collaboration with stakeholders
Strategy

The Meiden Group’s Medium to Long-term Environmental Targets

FY2030 Greenhouse Gas Emissions Reduction Targets (Second Meiden Environmental
Vision)The Meiden Group aims for Carbon Neutrality by 2050. As an interim step, we upwardly revised
our FY2030 greenhouse gas emission reduction targets. As the Second Meiden Environmental
Vision, we aim for a 30% reduction of emissions from business activities (scope 1+2), and a
15% reduction of emissions from product use (scope 3, category 11) by FY2030 compared to
FY2019 levels. These targets received SBT certification as they were recognized by the Science
Based Targets (SBT) initiative*1 as being consistent with the Paris Agreement*2.
FY2030 greenhouse gas
First Meiden
Second Meiden
emissions reduction targets
Environmental Vision Environmental Vision(Released in May 2018) (From April 2021)
Emissions from business activities 30% reduction (compared 30% reduction (compared(scope 1+2)
to FY2017)
to FY2019)
Emissions from product use (scope NA
15% reduction (compared3, category 11)
to FY2019)30

Meiden Group CSR

*1 SBT Initiative: An international initiative by the United Nations Global Compact (UNGC), theWorldwide Fund for Nature (WWF), the CDP, and the World Resources Institute (WRI).
*2 Paris Agreement: An international framework “to limit average global temperature rise to well
below 2°C compared to pre-industrial levels and to strive to limit it to 1.5°C,” which was adopted
at COP21 in 2015.
SBT certification（PDF:132KB）
To attain these targets, we joined the Ministry of the Environment’s “FY2020 project to supportmodel businesses in compiling a plan to reduce CO2 emissions toward realizing SBTs.”*3 With
that support, Meiden has compiled the FY2021 version of the Meiden Group’s plan to reducegreenhouse gas emissions toward attaining SBTs. This plan outlines initial ideas for an
implementation plan and specific reduction measures to implement long-term reduction
measures by the target year stated in the Second Meiden Environmental Vision. We will revise
and optimize it as appropriate.。
◆Main Measures to Cut Greenhouse Gas Emissions

FY2030greenhouse gas Reduction measures (extract)emissions reduction
targets
Emissions from
Replacing SF6 gas (replacing with dry air, etc.)
business activities
Capital investment (replacing aging equipment, introducing(scope 1+2)
high-efficiency equipment, replacing gas with electricity, etc.)
30% reduction(compared to FY2019) Procurement of renewable energy power (non-fossil fuelcertificate, power menus, etc.)
Switching company-owned cars to electric vehicles
Emissions from product Eco-friendly product design (eliminating use of SF6 gas, anduse
downsizing products and making them more efficient)(scope 3, category 11) Revising business portfolio (increasing ratio of low carbon
15% reduction
emissions per unit of sales such as EV, maintenance services,(compared to FY2019) and small- and medium-sized hydropower generation, etc.)
Overall
Generating innovation
Introducing internal carbon pricing
31

Meiden Group CSR

In particular, with regard to reducing GHG emissions at the product use stage (Scope 3
Category 11), we will increase the ratio of low-carbon businesses with low emissions per unit ofsales, including EV-related products and maintenance services, for which demand is expected
to grow. By making our business portfolio low-carbon through these measures, we pursue bothincreased sales and reduced emissions.
*3 FY2020 pilot project to support companies in compiling a plan to reduce CO2 emissions
toward realizing SBTs: A public project by the Ministry of the Environment for the purpose ofpromoting specific reductions to achieve companies’ medium to long-term goals. In FY2020,
Tokyu Fudosan Holdings Corporation, Nissin Foods Holdings Co., Ltd., FamilyMart Co., Ltd.,Benesse Corporation and MEIDENSHA CORPORATION were selected for the project.

◆Timeline of main measures to cut greenhouse gas emissions◆Scope 1 and 2 reduction measures and results

32

Meiden Group CSR◆Scope 3, category 11 reduction measures and results

Promotion of Ongoing Activities

We have developed an action plan for each Medium-term Management Plan and we arecontinuously working to conduct reforms in order to realize the environmental vision.

33

Meiden Group CSR

Deployment to the Action Plans

34

Meiden Group CSRResults Data

FY2021 Environmental Targets and Results

Targets and level of achievement for FY2021, which is the first year of Medium-termManagement Plan 2024, are as follows.
Please refer to the corresponding page for details of each item.
Achievement of FY2021 Environmental Targets
Rating: ☆☆☆ = target achieved,☆☆ = improvement over previous year,☆ = work in progress
Strategic
Actions
FY2021 Environmental
Targets
Targets (Japan)
Contribute to Promote
Contribute a 950,000
environment environmentally t/year reduction in CO2
throughconscious design emissions byproducts andEnvironment-Contributing
Businesses
services
Build a foundation for
scope 3, category 11
reductions (investigate
and calculate for main
businesses)

35

FY2021 Rating
Results
736,000 tons ☆

Conduct LCA ☆☆☆
for threebusiness units

Meiden Group CSR

Strategic
Actions
FY2021 Environmental FY2021 Rating
Targets
Results
Targets (Japan)
Reduce the Reducegreenhouse Japan: Total emissions-13%☆☆☆
environmental gas emissions(Scope 1+2): -3%(compared to
impact of(compared to FY2019) FY2019)business
Overseas*1: Total☆
+12%
operations
emissions (scope 1+2): (compared to-1% (compared to
FY2019)FY2019)Manage chemicals VOC emissions: 80 tons or 71.9 tons☆☆☆
properly
less
Promote the 3Rs Total waste: –4%☆☆☆
-10.3％(compared to FY2017) 4 (compared tomain manufacturing
FY2017)
sites*3
Zero waste emissions*4 at 1.2％☆☆
9 sites*5: 1% or less final
waste emissions
Conserve water
Implementation of water On-site☆☆☆
resources
conservation activities and investigation
risk countermeasures: 4 andmain manufacturingconsiderationsites*3ofreplacement
proposals to
streamline
plumbing
Conserve
Conservation of
Elimination of ☆☆☆
biodiversity
ecosystems: 4 main
introduced
manufacturing sites*3
species, red
pineconservation
activities,
tree-planting
activities,
education
activities
PromoteStrengthen value Green procurement rate 89％☆☆
environmental chain management (own standards): 90% ormanagement
greater*1 Main overseas production sites*2 Emissions volume increased as MEIDEN T&D (INDIA) LIMITED was added to the Meiden
36

Meiden Group CSR

Group through business expansion in FY2021.
*3 Four main manufacturing sites: Numazu Works, Ota Works, Nagoya Works, and KOFU
MEIDENSHA ELECTRIC MFG. CO., LTD.
*4 Meiden Group’s definition of zero waste emissions: To achieve a recycling rate of 99.0% ormore of the total volume of waste generated. (including industrial waste, general waste, andvaluable resources, excluding construction sludge, etc.).
*5 Scope of zero waste emissions initiatives: manufacturing sites in Japan (Numazu Works, Ota
Works, Nagoya Works, KOFU MEIDENSHA ELECTRIC MFG. CO., LTD., MEIDEN CHEMICAL CO.,LTD. (Sagami Works), HOKUTO DENKO CORPORATION (Atsugi Works)), Engineering Service
Business Units and two Construction Service Business Units
Targets

FY2022 Environmental Targets

At the Meiden Group, we formulated Medium-term Management Plan 2024 to cover the four
years from fiscal 2021 and we are working to implement sustainability management.
In particular, we have developed greenhouse gas emissions reduction targets for the next four
years by back-casting based on the fiscal 2030 greenhouse gas emissions reduction targets in
the Second Meiden Environmental Vision.
The environmental targets for FY2022, are as follows. For the target of zero waste emissions,
we are changing the standard to a final disposal rate of less than 1.0%.
FY2022 Environmental Targets
Strategic
Actions
Targets
Contribute to Promote
environment environmentally
throughconscious design
products andservices

FY2022 Environmental Targets (Japan)
8.0 million-ton reduction in GHG emissions byEnvironment-Contributing Businesses *1
Develop a plan for scope 3, category 11
reductions (create systems and develop astandard)

37

Meiden Group CSR

Strategic
Actions
FY2022 Environmental Targets (Japan)
Targets
Reduce theReducegreenhouse Japan: Total emissions (scope 1+2): –5%
environmental gas emissions(compared to FY2019)
impact ofOverseas: Total emissions (scope 1+2): -2%
business(compared to FY2019)
operations
Manage chemicals VOC emissions: 80 tons or lessproperly
Promote the 3Rs Total waste: –5% (compared to FY2017): All sites
in Japan (excluding Construction Business Unit)
Less than 1.0% final waste emissions: Main sites inJapan *2
Conserve water
Promotion of efficient use of water resources: 4
resources
main manufacturing sites *3
Conserve
Conservation of ecosystems in green spaces
biodiversity(reduced agricultural chemicals, elimination of
introduced species, etc.): 4 main manufacturing
sites *3
PromoteStrengthen value Green procurement rate (own standards): 90% orenvironmental chain management greater
management*1 Direct or indirect GHG reductions (estimated) from replacing standard products and services
with the Meiden Group’s products and services (revised calculation method from FY2022)*2 Main sites in Japan: Numazu Works, Ota Works, Nagoya Works, KOFU MEIDENSHA
ELECTRIC MFG. CO., LTD., MEIDEN CHEMICAL CO., LTD., HOKUTO DENKO CORPORATION,MEIDEN ENGINEERING CORPORATION, Plant Construction & Engineering Business Group,
MEIDEN PLANT SYSTEMS CORPORATION, EAML Engineering CO., LTD.
*3 Four main manufacturing sites: Numazu Works, Ota Works, Nagoya Works, and KOFU
MEIDENSHA ELECTRIC MFG. CO., LTD.

38

Meiden Group CSRHome Sustainability

Environment

Environmental Management

Environment

Environmental Management
PolicyThe Meiden Group is promoting environmental management that brings together businessstrategy and environmental activities.
We continually improve our environmental management system as we evaluate its validity andeffectiveness.
Organization

Environmental Management Promotion Organization

Under the leadership of the President, who is our chief executive officer, the executive officer(environment) oversees the environment management of the Meiden Group overall, while thegeneral manager (GM) in charge of EMS works to maintain and improve the environmental
management system (EMS). In addition, our Group-Wide internal environmental audit team, an
independent organization, audits environmental management initiatives, legal compliance, EMS
effectiveness, and more, and offers ideas for improvement.
The executive officer (environment) chairs the Meiden Group Environmental Committee(MGEC), our highest decision-making body for environmental initiatives. The MGEC identifies
issues to address, including risks relating to climate change and the like, sets environmental
targets and formulates action plans, conducts management reviews, responds to emergency
situations, reviews and reports on environmental measures and working groups (WGs), and sets
environmental management policy directions.
For the most important issues, the executive officer (environment) and GM in charge of EMS
consult with the Executive Officers’ Meeting, Board of Directors, and the like and then acts as
decided by top management.

39

Meiden Group CSR

Meiden Group Environmental Management Promotion Organization

Responding to Environmental Risks and Opportunities
Phenomena (issues) related toenvironment
Government(political) Laws Carbon
andand Regulations neutrality
mitigation ofclimate change
Adapting toclimate change
Accelerating
expansion into
new energy
and renewableenergymarkets, andcarbon-freeenergy systems

Risks

Opportunities

Effects ofcooperation
throughout thevalue chain
Rising insurance
premiums
Electricity
market: Morenew players
Intensifiedcompetition
with otherindustries

Increased
demand forenvironmentfriendly typeproducts
Increased
opportunities in
the primary
and tertiaryindustrymarkets
New energy,
renewableenergy, and
VPP market
expansion

40

Carrying out
initiatives
Promotingenvironmental
management
Expanding products’
contribution to theenvironmen

Meiden Group CSR

Phenomena (issues) related toenvironment
Strengthening
partnerships
with municipal
governments,
etc.
EconomyCarbon pricing
Automobile
electrification
anddigitalization
Sustainability
management
and CSV
approachMedium- tolong-term
economic
growth ofdeveloping
countries

Society

Efficientutilization of
resources andactiveutilization ofrecycled
materials
Expandingbusinesses that
contribute totheenvironment
and productsthat contributeto GHG
reduction
Response to
CDP, SBT,TCFD, TGIF,etc.*
Expansion of
responsibility

Risks

Opportunities
Proposals forurban
development
and businessexpansion

Increased prices
Zero value chain
CO2 emissions
in the future
Withdrawal ofinvestors due tobeing seen as
half-hearted incarbonreduction
efforts
Overseas
compliance

Increased costs
due to utilizationof recycledmaterials
Reducedproduct
competitiveness
Reducedcorporate value
Risks to thevalue chain(procurement
and seeking
responsibility)
Decreased
employeeawareness
Increased
reputational andlitigation risks

41

Expandednonuse fossil
fuel, newenergy, andrenewableenergy markets
Expanded EV
motor/invertermarketIncreased
corporate value
through
information
disclosure
Conducting
growthinvestments(overseas
markets)
Reduced costs
due todecreased
reliance on
scarceresources, andreducedemissions
Increased
corporate value
due toexpansion ofbusinesses that
contribute totheenvironment
and productsthat contributeto GHG
reduction
Reputation as aproblem-

Carrying out
initiatives

Expanding products’
contribution to theenvironment
Promotingenvironmental
communication
Promotingenvironmental
management
Environmental auditsof overseas
production sites

Promotingenvironmentallyconsiderate design
Expanding products’
contribution to theenvironment
Promotingenvironmental/healthand safety
communication
Strengthening value
chain management
Reform ofenvironmental/healthand safety
awareness

Meiden Group CSR

Phenomena (issues) related toenvironment
to the value
chain
Change oflifestyle(ecologicalorientation)
and adoptionof Sustainable
Development
Goals (SDGs)
Fair labor andemployment
conditions
After Corona
and WithCoronainitiatives*TGIF: A section of
the Climate
Innovation Finance
Strategy proposedby METI in
September 2020.
This favors finance(F) towards
transition (T),green (G), andinnovation (I),rather than adualistic approach,in order to achieve
the SDGs and theParis Agreement.
Technology
High-efficiency
powertransformer
technology
Evolution of
ICT and IoTtechnology andaccelerated
digitaltransformation
Diversificationand efficiencyof maintenanceservices

Risks

Opportunities

Loss ofcorporate value
as a so-called
black company
Increased gap
betweencompanies

solvingcompany
Enhanced value
chain
Increasedawareness,
unified goals of
employees, etc.
Initiatives toincorporate
SDGs andinformation
disclosure
Work-stylereforminitiatives
Creation of
new businesses
and work-stylereforms

Increased new
players (ITcompanies)
Industrial
accidents due
to ignoring risks

Increased
demand forenvironmentfriendly typeproducts
Utilizing ICT
and IoT andstrengthening
systemtechnologies
and productcapabilities
Enhancedrollout of one-

42

Carrying out
initiatives

Expanding products’
contribution to theenvironment

Meiden Group CSR

Phenomena (issues) related toenvironment
Evolution ofvirtual reality(VR) andaugmented
reality (AR)Legal
RestrictionsLegal Tightenedoverseas
Restrictions
environmental
regulations
Fourth basic
recycling plan
Tightening ofharmfulchemical
substance
regulations

NaturalEnvironment

Depletion of
resources
Microplastics
issuesEcosystem
abnormalities
Occurrence ofdisasters
Change to air
temperatureand rainfall,
and abnormal
weather events

Risks

Penalties andloss ofreputation due
to noncompliance withoverseas laws
Increased costof virgin
materials
Analysis,communication,
andmanagement of
information
concerning SDS
and harmful
substances
Increased costof virgin
materials
Utilization of
biodegradable
plastics
Increased
reputational andlitigation risks
Business
continuity
Disaster
response andindustrial
accidents attime of recovery
Disrupted value
chain due toflood, etc.

43

Opportunities
stop services
Realistic
experiences ofaccidents anddisasters
Utilization ofrecycled
materials
Superior
products ofcompetitive
advantage thatare free fromharmfulsubstances

Utilization ofrecycled
materials andpromotion of
the 3Rs for
products
Provision of
local
contribution
activities andincreased
corporate value
Increased
demand for thewater businessdue to water
risks

Carrying out
initiatives

Promotingenvironmental
management
Promotingenvironmentallyconsiderate design
Strengthening
management ofchemicals in
products

Promotingenvironmentallyconsiderate design
Promotingenvironmental
communication
Promotingenvironmental/healthand safety
management

Meiden Group CSRISO 14001 Certification Status (as of March 31, 2021)

We are expanding the scope of bodies certified under ISO 14001, the international standard
for environmental management systems. In Japan, Meidensha and 19 affiliated companies havefinished earning certification. Overseas, 11 companies, mainly manufacturing sites, havefinished earning certification.
Certification Status in Japan
Company Name
Date of Certification Acquisition
1 MEIDENSHA CORPORATION*
February 24, 1998
2 MEIDEN SHOJI CO., LTD.
3 KOFU MEIDENSHA ELECTRIC MFG. CO., LTD.*
4 MEIDEN SYSTEM MANUFACTURING CORPORATION*
5 MEIDEN KIDEN KOGYO CO., LTD.*
6 MEIDEN KOHSAN CO., LTD.
7 MEIDEN SYSTEM SOLUTIONS CORPORATION
8 MEIDEN PLANT SYSTEMS CORPORATION*
9 M WINDS CO., LTD.
10 MEIDEN UNIVERSAL SERVICE LTD.
11 MEIDEN AQUA BUSINESS COMPANY
12 MEIDEN TECHNO SYSTEMS CO., LTD.*
13 MEIDEN MASTER PARTNERS CORPORATION
14 MEIDEN O&M CORPORATION
July 31, 2003
15 MEIDEN ENGINEERING CORPORATION
16 MEIDEN CHEMICAL CO., LTD.*
November 20, 201217 MEIDEN FACILITY SERVICE CORPORATION
November 18, 201518 HOKUTO DENKO CORPORATION*
October 3, 2013
19 EAML Engineering CO., LTD.*
March 5, 2004
* Companies with manufacturing plants

44

Meiden Group CSR

Certification Status Overseas
Company NameArea

1 MEIDEN ZHENGZHOU ELECTRIC CO., LTD.*

Zhengzhou,
China
2 MEIDEN HANGZHOU DRIVE SYSTEMS CO., LTD.* Hangzhou,
China
3 SHANGHAI MEIDENSHA CHANGCHENG
Shanghai,
China
SWITCHGEAR CO., LTD.*
4 P.T. MEIDEN ENGINEERING INDONESIA
Indonesia
5 MEIDEN MALAYSIA SDN. BHD.
Malaysia
6 MEIDEN METAL ENGINEERING SDN.BHD.*
Malaysia
7 MEIDEN SINGAPORE PTE. LTD.*
Singapore
8 THAI MEIDENSHA CO., LTD.
Thailand9 MEIDEN ELECTRIC(THAILAND)LTD.*
Thailand10 TRIDELTA MEIDENSHA GmbH.*
Germany
11 MEIDEN T&D(INDIA)PRIME MEIDEN
India
LIMITEDLTD.** Company with manufacturing plants

Date of Certification
Acquisition
October 9, 2013
April 7, 2008
January 11, 2016
December 19, 2018
October 10, 2018
October 9, 2014
February 8, 2010
July 1, 2009
September 30, 2013
July 13, 2015
January 26, 2015

Percentage of Companies Certified in Japan/Overseas

Number of certified companies in Japan

Number of certified companies overseas

Initiatives

Internal Environmental Audits

We conduct internal environmental audits separate from the external audits we get from ISO
14001 registrars. Internal audits confirm the state of improvement on concerns pointed out in45

Meiden Group CSR

external audits and check up on audit items that are marked as priorities for that fiscal year.
We conducted audits at overseas sites, focusing on increasing the accuracy of the estimationof energy, vehicle, and water use, and waste emission volume. In FY2021, our audits prioritized“environmental factors and evaluating environmental impact”, “formulation, analysis, andevaluation of environmental targets”, “performing checks of compliance activities”, “improving
human resources” and “legal requirements (Waste Disposal and Public Cleaning Act andFluorocarbon Emissions Control Act, etc.)”.We determined that the Group was conforming to
ISO 14001:2015 requirements and functioning effectively.
If any concerns are pointed out during internal environmental audits, we take them as anopportunity for improvement and incorporate them into further improvement initiatives.

Environmental Information Management System

The Meiden Group uses an “environmental information management system” that we put inplace to manage and analyze environmental impact in our business activities.
The system collects and centrally manages information on environmental impact of businessactivities (such as automotive fuel, energy, waste, chemical substances, and water use) at
Meiden Group manufacturing sites and offices, even those outside Japan.
The information so collected is used as basic data for efforts to lower environmental impact. It
is also useful to ensure proper filings of information as required by the Act on the Rational Useof Energy, Act on Promotion of Global Warming Countermeasures, the electrical and electronicequipment industry’s “Carbon Neutrality Action Plan,” and Japanese PRTR system for reportingchemical releases and transfers.

Analysis of environmental impact withenvironmental information management
systemCompliance with Environmental Regulations

Each Meiden Group work site and affiliated company sets and follows voluntary standards
stricter than applicable laws and regulations. This ensures we remain in legal compliance. If alegal violation or incident does occur, our rules state that management shall be notified within
three hours.
In FY2021, there were one incident involving exceeding voluntary standards for wastewater, butthere were no serious violations of environmental laws or regulations (including water intake,46

Meiden Group CSR

wastewater, other waste, and harmful chemicals). We did not receive any complaints regarding
noise or odor.
Results Data

Incidents relating to voluntary standards cases
Date
LocationContent
Response measures, etc.
1
February Numazu
As a result of regular
In addition to improving
2022
Works
testing of factory
untreated water, we
wastewater conducted in established a rule that thethe wastewater of Factory manager would conduct
10, Cu (copper)
pre-treatment
concentration exceeded concentration control whenthe voluntary standards 60% of the regular analysis(within emission standards value was exceeded, andin the Water Pollution
set warning alert to make
Prevention Act)
sure wastewater treatment
capacity was not exceeded.
Breaches of Environmental Laws (Record)
FY2019FY20200

0

FY20210

Environmental Accounting (FY2021)

We quantify costs, etc., relating to environmental activities, with reference to the Ministry of theEnvironment’s “Environmental Accounting Guidelines 2005.”
Environmental Protection Costs
Investment (million yen)
Business area costs
Implementation of new energy-saving
1,053
devices, etc.
R&D costs
R&D costs for environmentally950
conscious products, etc.
* Scope of calculation: Meidensha (non-consolidated); period covered: April 2021–March 2022

47

Meiden Group CSRHome Sustainability

Environment

Product Initiatives (Expand businesses that contribute to the environment)

Environment

Product and Service Initiatives (Expand businesses that contributeto the environment)
PolicyWe are actively promoting initiatives that contribute to the environment in order to “realize amore affluent future” by leveraging our technology and experience honed over many years.
Performance Data

Contributions to the Mitigation of Climate Change by Reducing
Product and Service CO2 Emissions

The Meiden Group aims to contribute the environment through its products and services byutilizing renewable energy sources such as solar, wind and hydroelectric power, by improving
the efficiency of its products to save energy, and by optimizing customers’ equipment throughmaintenance and servicing.
In FY2021, we have set a target of 950,000 tons/year of environmental contribution (theexpected reduction in CO2 emissions from products sold). We were unable to achieve our goal,with an emissions reduction of 736,000 tons/year due to factors such as the reduction in
power generation as a result of the repair work of Hachiryu Wind Farm. In FY2022, we changed
the name of “environmental contribution” to “GHG reduction contribution,” and we have set
GHG reduction contribution targets using calculation methods that are comparable to standard
products and services around the world. Applicable products and services include the wind
power sales business, photovoltaic power generating systems, hydroelectric power generationequipment, and electrical equipment for electric vehicles.

Choshi Shiosai Wind Farm Photovoltaic PCS

48

Integrated
motor/inverter/gear box
drive unit

Meiden Group CSRGHG Reduction Contribution Volume (Former Environmental Contribution Volume)

The reasoning behind calculation of environmental contributions of products and services is asfollows.
Applicableproducts/businesses
Power conditioners forphotovoltaic
generation
Wind power sales
business*
Hydroelectric
generators
Electrical equipment
for electric vehicles
Power conditioners forstorage batteries
Electrical equipment
for electric forklifts
Engines and turbine
generators
Transformers
Inverters
Uninterruptible power
supplies
Ecotank type vacuum
circuit breakers
Total

FY2021 GHG
reduction
contribution(10,000t CO2)
0.8

Environmental contribution calculation method
Emissions reduction if grid power is substituted with renewable energy

4.8
10.0
19.4
0.4
4.3
4.2

Emissions reduction if an equivalent grade of gasoline vehicle issubstituted
Emissions reduction from substitution of pumped hydroelectric
generation (high efficiency)
Emission reduction when substituting with our existing products(reduction of lost energy)

9.2
16.9
0.9
2.7
73.6

* Calculated by multiplying the difference in volume of CO2 emissions at the point of use, by
the expected life and annual sales volume. However, wind power generation is calculated basedon annual power generation performance.
49

Meiden Group CSR

Initiatives

Wind Power Sales Business

M WINDS Co., Ltd. and its affiliates operate a wind power sales business and supply renewableenergy from three locations* in Japan (30 wind turbines with a generating capacity of 51,000
kW).
They conduct environmental assessments when constructing and installing wind power
generators, investigating, predicting, and evaluating impacts from various perspectives, such asthat on ecosystems, and implement environmental protection measures as appropriate whileconsidering the opinions of local governments and residents.
* Hachiryu Wind Farm (Akita Prefecture): 18 wind turbines with a generating capacity of 28,000
kW Wajima Community Wind Farm (Ishikawa Prefecture): 10 wind turbines with a generating
capacity of 20,000 kW Choshi Shiosai Wind Farm (Chiba Prefecture): 2 wind turbines with agenerating capacity of 3,000kW

Hachiryu Wind Farm

Wajima Community Wind
Farm

Choshi Shiosai Wind Farm

Aiming for increased utilization of wind power

The FY2021 generation volume of Hachiryu Wind Farm, which we are considering replacing in
FY2023 was 104,446 MWh of electricity, following on from FY2020 when we also generated
more than 100,000 MWh of power. Going forward, we aim to further improve the utilization
rate in order to increase our environmental contribution.

Transition of Total Power Generation Performance

50

Meiden Group CSRElectrical Component for Electric Vehicles

Meidensha supplies motors and inverters installed in electric vehicles, which are becoming
more common throughout the world. We promote the development of technology and products
for EV and HEV drive systems. One of our new initiatives was to commercialize Meiden e-Axle,
which is an integrated motor/inverter/gear (decelerator) product.
This is a standard product that will contribute to shorter development times for customers andmay reduce cost compared to custom products. It has a 60% higher output density comparedwith existing Meidensha products (excluding decelerator) with a maximum output of 150 kW
and a maximum drive shaft torque of 3,120 Nm.

Power Conditioner System for Photovoltaic Generation

Power conditioners system (PCS) is the most essential part of photovoltaic generation systems.
We have consistently supplied transformer-in PCS with a built-in commercial frequency isolationtransformer that emphasizes safety and security so far. PCS with 500kW output has thehighest conversion efficiency of 98.7% in the world. Container type and outdoor storage
cubicle type packaged with a set of equipment are also available.

Hydroelectric Power Generation Equipment

Hydroelectric power is a form of renewable energy that enables steady generation of electricity
throughout the year. Meidensha has delivered many small, medium, and large generators tocustomers in Japan and overseas.
Many of the hydroelectric power generation facilities are aging due to many years of operation.
It is effective to renovate in the most suitable way for each power facility. Renovation is
expected to improve efficiency/save energy, improve reliability/maintainability, and beenvironmentally friendly. We investigate the current status of the power facility and propose
the most appropriate renovations using the latest technology for each facility.

Vacuum Circuit Breakers (VCB)

In 2004, Meidensha succeeded in developing a 72-kV-class tank- type vacuum circuit breakerthat uses no sulfur hexafluoride (SF6) gas, which has 20,000 times the greenhouse propertiesof CO2, and has a record of delivering more than 2,000 units to domestic and overseas
electricity companies, etc. In 2020, we developed a 145-kV-class model to meet high-voltage
requirements. This is the world’s first dry air insulation tank type vacuum circuit breaker of thisvoltage class. In October 2021, the first unit was shipped to a power company in the US stateof Alaska.
＊SF6 gas: A chemically stable, non-toxic, odorless, colorless, non-flammable gas with threetimes the ability to withstand voltage of air at the same pressure. However, it has 22,800 times
51

Meiden Group CSRthe effect on global warming of CO2 and was listed as a controlled gas in the Kyoto Protocol toprevent global warming.

145kV tank type VCB

Field Engineering Business (Maintenance and Servicing)

Field engineering is a business that contributes to the solution of customer issues by providing
support through the entire life-cycle of a product, from delivery through trial runs upon
installation, subsequent proposal and implementation of operation and maintenance plans,
maintenance and management of installation locations, remaining life assessment of aging
equipment, measures to prolong life, replacement proposals, and disposal.
In addition to regular inspection of equipment, we make proposals to achieve stable operationand life-cycle cost reduction through compliance that may be overlooked such as handling of
small quantities of PCBs by the deadline, mercury arc lamps, conserving energy, andconducting environmental analysis and deterioration analysis through thermal imaging, etc.,
through walk-through activities where we walk through sites with our customers and investigate
and assess their equipment.

Thermal imaging analysis at Replacement of equipment
walk through52

Meiden Group CSRHome Sustainability

Environment

Product Initiatives (Promote Environmentally Conscious Design)

Environment

Product Initiatives (Promote environmentally conscious design)
PolicyPromote environmentally conscious design

The Meiden Group is promoting development of environmentally conscious products that
reduce our impact on the environment.

Product environmental assessment

Any time we develop a new product, we evaluate it for energy and resource conservation,
recyclability, environmental safety, and more, based on our Product Environmental Assessment
Standard. If a product meets those standards, we certify it as a Meiden Green Product.
For the evaluation item “consideration of lifecycle,” we calculate CO2 emissions according to alife cycle assessment (LCA), and we encourage environmentally conscious design in order toreduce CO2 emissions.
Initiatives

Life cycle assessment (LCA) initiatives

The Meiden Group conducts an assessment of the environmental
impact of a product throughout its life cycle, from procurementof components through to disposal, in accordance with our
Guidelines for Environmental Action. We use the LCA method toquantify the environmental impact of products and services,which helps us to improve environmental performance at thedesign and development stage and to conduct productexplanations to customers and PR, etc.

Environment label (type Ⅱ)
indicating conformity with
Meidensha Green Productstandards

53

Meiden Group CSRProduct environmental assessment standards
Classification
Product volume reduction

Energy and resource conservation

Recycling

Long-term usability
Management of chemical substances
Life cycle consideration

Environmental safety

Information disclosure

Items◦ Weight reduction◦ External dimensions and capacity◦ Reduction of number of components◦ Reduction of power consumption◦ Water saving◦ Reduction of consumables◦ Reduction of packaging volume◦ Use of recycled materials◦ Separability of materials◦ Ease of collection and transport◦ Maintainability◦ Reliability and durability◦ Environmental friendliness◦ Reduction of life cycle environmental
impact◦ Disclosure of information concerning
evaluation of environmental impact◦ Danger of fire or explosion◦ Danger at time of dismantlement◦ Environmental measures◦ Provision of information concerning a
product’s environmental impact

54

Meiden Group CSR

A Meiden Green Products Registered in FY2020[Product] New Driving Robot TYPE-i
A system for automatic operation ofcomplete vehicles on the chassis
dynamometer. Accelerator, clutch,transmission, brake, and ignition key areoperated with an electric actuator in thesame manner as they would be by a human.
The driving robot is made from a single piece
construction of carbon fiber reinforced
plastic (CFRP) rather than conventional metal,
which improves operability at every level.
This product received the Good DesignAward (from Public Interest Incorporated
Foundation Japan Institute of Design
Promotion)*1 in FY2021, and the Red Dot
Design Award (from Design Zentrum
Nordrhein Westfalen) in FY2022*2. The Red
Dot Design Award is a German international
design award with global recognition.
This product has the following advantages
over its predecessor.
● 55% lighter and 58% smaller due singlepiece CFRP construction● 22% less electricity consumption due toimprovements in robotic drive systems
Lifecycle CO2 Emissions
Lifecycle CO2 Emissions

48％* Percentage based on previous model of
equivalent Meidensha product
Click here for related products and details.
*1: Good Design Award/winning product introduction page*2: Red Dot Design Award
An international design award granted by Design Zentrum Nordrhein Westfalen, in Essen,
55

Meiden Group CSR

Germany, since 1955. Out of the three categories of “product design,” “brands &communication design,” and “design concept,” the driving robot Type-i RBT-2020 automatic
vehicle driving device won the product design category on this occasion.

56

Meiden Group CSRHome Sustainability

Environment

Product Initiatives (Management of chemical substances in products)

Environment

Product Initiatives (Management of chemical substances in
products)
Initiatives

Management of chemical substances in productsManagement of chemical substances in products We operate an “Environmental BOM*1
Management System” that collect and communicate information concerning chemical
substances contained in products through a cloud-based Web system.
We work to share information with suppliers of components, materials, etc., throughexplanatory sessions, individual consultations, etc., using chemSHERPA*3 operated by JAMP*2.
We register the chemSHERPA*3, etc. provided by our suppliers with the Environmental BOM
Management System to determine the aggregation of chemical substances contained in eachproduct and compliance with regulations.
*1 BOM: Bill of Materials*2 JAMP: Joint Article Management Promotion Consortium. JAMP aims to appropriately
manage information about chemical substances, etc., in products, and create and spread
specific mechanisms for smooth disclosure and communication within the supply chain.
Meidensha is a member of JAMP.
*3 chemSHERPA: A joint information transfer scheme that facilitates thedisclosure/communication of chemical substances information in products, which is maintained
and managed by JAMP

57

Meiden Group CSRDiagram of Environmental BOM

58

Meiden Group CSRHome Sustainability

Environment

Climate Change

Environment

Climate Change
Awareness

Since its establishment in 1897, Meidensha has produced a range of technologies, products,
and services and contributed to the development of a sustainable society in its role as amanufacturing company. In particular, we are deeply involved with decarbonization andreduction of carbon through power generation systems that utilize renewable energy sources
such as solar, wind, and small to medium hydroelectric, as well as energy solution services suchas smart grids. Through these environmentally conscious products, we aim to contribute to theachievement of a sustainable society and we are working to reduce greenhouse gas emissions
from business activities.
GovernanceMonitoring of Climate Change by the Board of Directors

Monitoring of the Risks and Opportunities Created by Climate Change at the Level ofthe Board of Directors

Under the direction of the President, who is the Chief Executive Officer, the Executive Officer(Environment) oversees the environmental management of the entire Meiden Group, while theEnvironmental Manager in Charge of EMS promotes maintenance and improvement of theenvironmental management system.
As the highest decision-making body with regard to environmental activities, the Meiden Group
Environmental Committee, which is chaired by the Executive Officer (Environment), identifies
issues including risks posed by climate change and deliberates concerning environmental
targets, action plans, and emergency response, etc., as well as determining environmental
management direction. As part of its role, the Environmental Committee refers importantmatters to the Executive Officers’ Meeting and the Board of Directors, etc., to initiate activities
based on executive-level decision-making.

EMS Promotion Organizations

59

Meiden Group CSR

Indicators

Amount of Greenhouse Gas Emissions
Scope 1 and Scope 2 emissions

In FY2021, we introduced internal carbon pricing and conducted procurement of CO2-freeenergy from hydroelectric power plants in Gunma Prefecture for Ota Works, in order toenhance activities to reduce environmental impact. As a result, the aggregate figure fordomestic Scope 2 emissions fell.
（t-CO2）FY2018FY2019FY2020
FY2021
Japan Overseas Japan Overseas Japan Overseas Japan Overseas
18,137 4,886 16,491 5,215 16,161 3,848 14,267 2,636

SCOPE1
Direct emissions
from in-house use offuel, etc.
SCOPE2 Location 27,212 7,480
Indirect basis
emissionsfrompower orheat
Market 25,573 ‐purchased basis
from anoutsidesource24,980 7,043

24,479 9,755

25,160 10,605

24,724 ‐23,490 ‐21,478 ‐Amount of Greenhouse Gas Emissions (Scope 1 and 2) – Emissions from Business
Activities

Scope 1: Direct Emissions
Combustion of fuel (town gas and oil, etc.) and release of greenhouse gasses (SF6 and CFCs,
etc.)
Scope 2: Indirect Emissions
Combustion of fossil fuel to generate electricity (electricity company) that is consumed by the
60

Meiden Group CSR

company* Renewable energy produces zero emissions
Results Data

Amount of CO2 Emissions from Energy Sources

From FY2020, we commenced the aggregation of the environmental performance data of
MEIDEN T&D (INDIA) LIMITED, which led to increased CO2 emissions per unit of overseas sales.
We will further enhance initiatives for environmental impact reduction activities through review
of CO2 emissions calculation methods.

Amount of CO2 emissions from energy sources/CO2 emissions per sales unit

* Japanese emissions: The amounts of fuel oil and fuel gas are calculated referring to the "Listof Calculation Methods and Emission Factors in the Calculation, Reporting and Publication
System" for the relevant fiscal year published by the Ministry of the Environment. The amountof electric power is calculated referring to the "Emission Factor List by Electricity Power
Company" published by the Ministry of the Environment.
* Overseas emissions: The amounts of fuel oil and fuel gas are calculated referring to theemission coefficient by country published by the GHG protocol. The amount of electric power iscalculated referring to the average coefficient by country in 2010-2012 published by theInternational Energy Agency (IEA).
* Energy consumptions per unit are emissions (t-CO2) divided by net sales (million yen).

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Meiden Group CSR

Energy Consumption (crude oil equivalent)

Energy consumption/energy consumption per unit of sales

Initiatives

Reduction of CO2 Emissions from Business Activities

The Meiden Group is conducting strategic capital investment in order to reduce greenhousegas emissions from energy consumption, such as by introducing internal carbon pricing,
replacing lighting and air conditioning equipment with highly efficient models. Furthermore, we
are working to improve operation of equipment by enabling visualization of power consumption
and strictly managing power consumption, particularly at night and on holidays.
In recent years, we have procured electricity from renewable sources in an effort to reduce CO2
emissions from business activities.
In FY2019, we procured electricity with non-fossil fuel certificates for the Meiden R&D Center
and Osaki Kaikan Hall. In FY2020, EAML Engineering Co., Ltd. joined a pricing menu that utilizes
environmental value of renewable energy sources.
From FY2021 onwards, we are procuring electricity from CO2-free hydroelectric sources for
the Ota Works, which is one of our main production sites.
TOPICS
Introducing Internal Carbon Pricing
Internal carbon pricing is a mechanism that creates an economic incentive to
reduce emissions and promotes investment by setting a carbon price in thecompany and using it to calculate the cost of greenhouse gas emissions.
Meidensha introduced the internal carbon pricing system in April 2021. We will
convert carbon emissions from capital investment plans to expenses using aninternal carbon price through the system. It will be a tool to make investment
decisions. For now, we will make ad-hoc reforms starting from the following
conditions.
Internal carbon price: 3,000 yen/t-CO2(be amended at any time in the future)
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Meiden Group CSR

Subject to application: Capital proposals for FY2021 onwards (for the time being,
the system will be used for visualization, and will not incur any actual cost)
In FY2021, there were nine cases of application. For example, when replacing
lights(LED) at the Meiden Numazu Works Industrial Components Factory Complex
in Shizuoka Prefecture, we used dimmable LEDs, which are expected to reduce
CO2 more than simple LED lights.
As a result of the introduction of internal carbon pricing, we expect to reduce GHG
emissions from business activities by making investment decisions about what
equipment to introduce that consider reduction of environmental impact inaddition to safety and productivity.
Equipment subject to internal carbon pricing
323 (million yen)
(FY2021)
Reduction due to internal carbon pricing*
5,036（t-CO2）*Reduction is calculated based on the lifecycle (statutory useful life) of equipment.
Procurement of Electricity with Zero CO2 Emissions Using Non-Fossil Fuel Certificates
Since November 2019, we have procured electricity from substantially renewableenergy sources
for the Meiden R&D Center
and Osaki Kaikan Hall in combination*1*2
with FIT and non-fossil fuel certificates , which carry tracking information for thesubsidiary, M WINDS Co., Ltd.‘s Choshi Shiosai Wind Farm. Through non-fossil fuelcertificates containing tracking data, we are able to link electricity that isconsumed by the R&D Center and Osaki Kaikan Hall to the environmental value ofenergy produced by Choshi Shiosai Wind Farm, demonstrating that we produce
net zero CO2 emissions. In this way, electricity consumption by Meidensha‘s R&D
Center and Osaki Kaikan Hall produces net zero emissions.
Furthermore, using non-fossil fuel certificates with tracking information makes it
possible to conform with the international initiatives RE100, which has the goal of
obtaining 100% of the electricity required for business activities from renewableenergy sources. This expands our options to effectively utilize existing wind farms.
As demand for electricity from renewable energy sources is rapidly increasing, withthe aim of decarbonization, Meidensha will continue to work to reduce its
environmental impact and provide products and services that contribute to asustainable society.

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Meiden Group CSR

*1 Feed-in tariff (FIT) scheme: A system that obliges electricity companies topurchase electricity generated from renewable energy sources (solar, wind, hydro,
geothermal, biomass) for a certain period of time. The system was launched in July2012 in order to promote the use of renewable energy.
*2 Non-fossil fuel certificate: A certificate issued by the Ministry of Economy, Tradeand Industry that certifies the environmental value of electricity that does notcreate CO2 emissions, such as electricity from renewable energy sources. Trading
commenced through Japan Electric Power Exchange in May 2018, and ademonstration experiment that included tracking information (information thatclearly states the type and location of energy source) in certificates commenced in
March 2019.
Meiden switches to electricity with zero CO2 emission at its R&D
Center and another facility.
Procured from a subsidiary's wind farm using "non-fossil certificates"with tracking information
TOPICS
Procurement of CO2-Free Electricity that is Produced and Consumed in Gunma
Prefecture for Ota Works
From April 2021, Meidensha has been procuring electricity from CO2-freehydroelectric sources in Gunma Prefecture for Ota Works (Ota, Gunma), which isone of our main production sites. Up to this point, we have trialed procurement ofCO2-free electricity for some facilities such as the Meiden R&D Center (Shinagawa,Tokyo), but this is the first time we have introduced it for whole*1production sites.
This initiative uses the Gunma Hydroelectric Power Source Plan from the power
menu provided by Gunma Prefecture and TEPCO Energy Partner, Incorporated.
This power menu is a plan for local generation and consumption of electricity
provided from hydroelectric power plants directly run by Gunma Prefecture(excluding pumped hydro and FIT) to enable zero CO2 emissions from electricity
consumption. A portion of electricity charges are used for environmental
protection projects, etc., in Gunma, which contributes to the local community.

Ota Works was established in 1977 as a dedicated rotating machinery factory. It
currently focuses on medium and large rotating machinery and power generation
64

Meiden Group CSR

equipment and dynamometers, which are used for research and development, etc.,
of vehicles, etc., and develops and manufactures environmentally considerate
equipment. We have delivered many generators produced at Ota Works tohydroelectric power plants in Gunma, and Ota Works *2accounts for approximately
10% of the Meiden Group’s total power consumption. Going forward, Ota Works
will manufacture hydroelectric power generation equipment and component
products using electricity from renewable energy produced by hydroelectric
generation.
The Meiden Group is also considering procurement of electricity from renewablesources at other sites. We will continuously work to reduce greenhouse gas
emissions from business activities, etc., including prioritizing the introduction ofequipment with a low environmental impact, etc., and contribute to the realizationof a sustainable society through the development and delivery of products andservices that contribute to global environmental conservation.
*1 Application for trademark registration of “Gunma Hydroelectric Power SourcePlan” filed in Gunma Prefecture.
*2 FY2019 power consumption: 7,123 MWh.
Meiden to use locally generated, CO2-free electricity at Ota Works in
Gunma Prefecture
Important production base to tap renewable energy source generated
by hydro power
Initiatives and Results Data

Reducing Emissions of Greenhouse Gasses Other than CO2

The Meiden Group’s emissions of greenhouse gasses other than CO2 include SF6 gas, which isused for lightning arresters and circuit breakers, etc., and CFCs, which are used as refrigerants
in air conditioners.
With regard to SF6 gas, which contributes greatly to the greenhouse effect, we are working to
reduce emissions and conducting technical research and trials of substitute gasses.
Furthermore, in order to reduce CFC emissions, we are promoting stricter management andreplacement of air conditioners.

65

Meiden Group CSR

Emissions of Greenhouse Gasses Other than CO2 (Japan)

Reduction of CO2 Emissions from Product Transport

The transport division is working to reduce CO2 emissions by promoting cargo consolidation,
modal shifts, and efficient transport,such as using JR containers and making single tripsusing a
10t truck instead of two trips with a 4t truck.

CO2 Emissions from Product Transport (Japan)

Calculation of Greenhouse Gas Emissions in the Supply Chain

Meidensha is working to calculate greenhouse gas emissions, including indirect emissions in the
upstream and downstream supply chain in addition to those produced in the course of its
business activities. Meidensha is facing the issue of producing a large proportion of its
emissions from “use of sold products” (scope 3, category 11) and “purchased goods andservices” (scope 3, category 1). We are promoting environmental measures throughout theentire supply chain, including reducing downstream greenhouse emissions throughenvironmentally considerate product design and reducing upstream impact through green
procurement.

Meidensha’s Greenhouse Gas Emissions in the Supply Chain (Scope 3)

We calculate for our supply chain with reference to the Basic Guidelines on Accounting forGreenhouse Gas Emissions Throughout the Supply Chain, published by the Ministry of the
66

Meiden Group CSR

Environment and the Ministry of Economy, Trade and Industry, etc.
In developing the Second Meiden Environmental Vision, which set new medium to long-term
environmental targets and launched in FY2021, we completely reviewed Scope 3 calculation
methods. We transitioned from calculating the non-consolidated value of Meidensha tocalculating the consolidated value of the Meiden Group, and conducted review of units for our
FY2021 record. For Category 11, we increased precision by conducting more detailed
calculation of emissions per unit of production for each product group. We also reviewed partof our standards for Category 1 going back to FY2019. Thus, data values disclosed up to
FY2021 lack continuity; however, going forward we intend to trace these values using thiscalculation method and revise them as necessary.
Category
Calculation Method
Amount of Activity
Basic Unit
1. Purchased goods and services Purchase amount
3EID(materials, consumables,
services, etc.)
2. Capital goods
Amount invested in fixed
Ministry of theassetsEnvironment Basic Unit DB
3. Fuel and energy related activities Amount of energy
Ministry of the
not included in Scopes 1 or 2
consumption (electricity, Environment Basic Unit etc.)
DB
4. Upstream transportation andTransportation cost
3EID
distribution(freight, storage, packing,etc.)
5. Waste generated in operations Emissions of each type of
Ministry of thewasteEnvironment Basic Unit DB
6. Business travel
Transportation expenses
Ministry of theprovided (travel allowance, Environment Basic Unit etc.)
DB
7. Employee commuting
Transportation expenses
Ministry of theprovided (travel allowance, Environment Basic Unit etc.)
DB
8. Upstream leased assets
Rent (Leased items, etc.)
3EID
9. Downstream transportation and Amount of activity of sales
3EID
distribution
agents, etc.
10. Processing of sold products
Not applicable as the―Company’s products
include many formed items
11. Use of sold products
Calculated based on the
3EID
specifications of67

Meiden Group CSR

12. End-of-life treatment of soldproducts
13. Leased assets (downstream)
14. Franchises
15. Investments
Other

Meidensha products andoperating conditions
Assumed disposal cost ofsold products
Energy usage at leased
real estate
Not applicable as outsideof the scope of theCompany’s businessNot applicable as shares
held by the Company are
not for the purpose ofinvestment
Excluded from the scopeof calculation as this item
is optional

Category
1. Purchased goods and services
2. Capital goods
3. Fuel- and energy-related activities notincluded in Scopes 1 or 2
4. Upstream transportation and delivery
5. Waste generated in operations
6. Business travel
7. Employee commuting
8. Upstream leased assets
9. Downstream transportation and distribution
10. Processing of sold products
11. Use of sold products
12. End-of-life treatment of sold products
13. Downstream leased assets
14. Franchises
15. Investments
Other
Total

3EID
Ministry of theEnvironment Basic Unit DB―――（t-CO2）FY2019FY2020
FY2021
832,781
718,863
859,081
40,021
51,042
28,480
1,883
1,893
3,425

68

1,204
1,587
3,193
1,152
2,264
1,136

―
6,370,000
5,992
18,509―――7,600,980

1,346
2,004
1,007
940
2,124
1,056

―
6,050,000
5,418
16,837―――
7,314,136

1,442
1,645
2,160
1,182
2,079
1,168

―
5,922,573
5,976
20,030―――6,849,240
Meiden Group CSRHome Sustainability

Environment

Disclosure based on TCFD recommendations

Environment

Disclosure based on TCFD recommendations
Attitude

For many years, the Meiden Group has been aware of the major problem of climate change,and has worked to solve this problem through business. With regard to TCFD*, we endorsed
the TCFD recommendations in June 2019, we began considering risks and opportunities
according to the TCFD framework in 2020, and we are promoting the incorporation of this in
our strategies.
As society places more emphasis on the issue of climate change, in Medium-term Management
Plan 2024, which was released in FY2021, we pledged to “promote sustainability management,”
and we aim to accelerate promotion of management and development of businesses to realize
a carbon-free society.

* TCFD: Task Force on Climate-related Financial Disclosure established by the Financial Stability
Board (FSB) .

Initiatives to Implement 4 TCFD Recommendations and FY2021 Progress

Our initiatives relating to “governance,” “risk management,” “strategy,” and “metrics andtargets,” for which TCFD recommends disclosure, and our FY2021 projects are as follows.
Initiative
FY2021 Project
Governance Establishment of the ESG Management
The ESG Management
Promotion Committee (current thePromotion Committee
Sustainability Management Promotion
discussed
Committee), which is led by the President andenvironmental policies
handles of all aspects of sustainability, including and measures, etc.
response to climate change, consideration ofstrategies and measures for a carbon-freesociety, and management of progress. The
content of discussions is regularly reported to
the Officers Meeting and Board of Directors
Risk
Analysis, information gathering, andWe reviewed the
management management of major risks by the Risk
importance of allManagement Committee, in conjunction withcompany risks
relevant departments
Climate change risks are incorporated into allcompany risks under the leadership of the69

Meiden Group CSR

Strategy

Metrics andtargets

Initiative
Sustainability Promotion Department
With regard to the impact of climate change on
management strategy, arrangement of items
amounting to major risks and opportunities andmonitoring of financial impact
Development of a strategy to grasp
opportunities and incorporation of a strategy to
mitigate risks in Medium-term Management
Plan 2024

FY2021 Project

We conducted analysis
of 2°C (RCP2.6), 3°C(RCP6.0), and 1.5°C(RCP1.9) scenarios
We introduced
international carbon
pricing (ICP), andaccelerated
environmental
investment (3,000
yen/CO2-t)
GHG emissions from business activities (Scope [FY2021 Results]
1 and Scope 2) (compared to FY2019):
Scope 1 and Scope 2: 6%
Reduction of 6% by FY2024 and 30% by
reduction (compared to
FY2030FY2019)
Scope3: 7% reduction
GHG emissions from product use(Scope 3)(compared to FY2019)(compared to FY2019): Reduction of 6% by
FY2024 and 15% by FY2030
Aim to achieve RE100 for all companies by
2040, and become carbon neutral by 2050

Governance/Risk Management
GovernanceWith regard to all aspects of sustainability, including response to climate change, we establish
the ESG Management Promotion Committee led by the President, consider strategies andmeasures for a carbon-free society, and manage progress. We regularly report the content of
discussions to the Officers Meeting and Board of Directors.
As the decision-making body with regard to internal environmental activities, the Meiden Group
Environmental Committee, which is equal to the ESG Management Promotion Committee
chaired by the Executive Officer in charge of production, identifies internal issues, anddeliberates concerning environmental targets, action plans, emergency response, etc., as wellas promoting and monitoring the implementation of specific environmental management
measures.
From FY2022, we have reviewed our structure by splitting the ESG Management Promotion
Committee into the Sustainability Management Strategy Committee and the Sustainability
Management Promotion Committee with the aim of separating management decisions andmonitoring progress. Each committee deliberates concerning climate change-related issues andso on.
Sustainability Management
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Risk Management

As the business environment is changing extremely rapidly and impacts are becoming greater,
we are strengthening risk management in times of normal operation. We are increasing the risk
management capabilities of each department, and establishing systems to monitor and control
major business risks for all companies. The Risk Management Committee oversees all-company
risks.
With regard to risks relating to climate change, we identify and manage risks, led by theInternal Control Promotion Department and the Sustainability Promotion Department, andmanage a range of risks simultaneously by incorporating them into all-company risks.
Risk Management

Strategy

Analysis of Climate Change Scenarios

The Sustainability Management Promotion Division conducts analysis of climate change
scenarios in conjunction with relevant departments. The scenario analysis process is split into
four parts and conducted annually. At the same time, major factors that could impact businessare identified, and identified risks, opportunities, and evaluations are reflected in our businessstrategy.

Step 1: Identification and Materialization of Types of Scenario

As recommended by TCFD, we identified scenarios at multiple levels of warming, including a
scenario of less than 2°C, and conducted analysis accordingly. In FY2021, we considered two
scenarios, namely a scenario of 2°C (RCP2.6) and a scenario of less than 4°C (RCP6.0). Thisfiscal year, we added the increasingly likely scenario of 1.5°C (RCP1.9) according to the recent
status of discussions, etc., at COP26 held in November 2021.
We have also arranged outlooks and scenarios for 2030 based on these scenarios according tomanagement frameworks such as five forces analysis, using international published data fromthe IEA,IPCC, etc., as well as numerical data published by Japanese government institutions, etc.
Reference Scenarios
1.5°C
Net zero by 2050 (NZE2050)
IEA (2020)
Scenario
RCP1.9IPCC (2021)
2°C
Sustainable development scenario (SDS)
IEA (2020)
Scenario
RCP2.6IPCC (2014)71

Meiden Group CSR

Reference Scenarios
Less than Stated policy scenario (STEPS)IEA (2020)
4°C
IPCC (2014)
Scenario RCP6.0
Selected scenarios and outlooks are as follows.

72

Meiden Group CSRStep 2: Evaluation of Importance of Climate Change-related Risks

We have set out factors for climate change risks and opportunities according to the outlook ofeach scenario, giving reference to the risks and opportunities in the TCFD recommendations.
Factors for Risks Societal Scenario Opportunities and Relevant Businesses
andRisks for Meiden
Opportunities
Opportunities to The transport
Expanded EV
EV business/battery
reduce GHG
industry becomes businessstorage-related
emissionscarbon-free
Increased
government
subsidies
Increased
Expanded
Wind/ hydroelectric/
Increased
government
proportion ofrenewable energy photovoltaic
subsidiesstorage/hydrogen-related
renewable energy businessAccelerated
technologicaldevelopment
Transition to adecentralizedsociety
Tightening of legal Restrictions on Expanded Power Zero SF6
products/environmentrestrictions tochemicalT&D business
reduce GHG
substances suchfriendly-type products
emissions
as SF6
Electricity
companies
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Meiden Group CSR

Factors for Risks Societal Scenario Opportunities and Relevant Businesses
andRisks for Meiden
Opportunities
becoming carbonfree
Changing mindset Increased
Increased demand Green productsof stakeholders customer demand for green products
for being carbonfree
Opportunities to Shift to lowIncreased demand Rail-related products andreduce GHG
carbonfor rail businessservicestransportation
emissions
Opportunities to Introduction of a Increased
All companies
manufacturing
reduce GHG
carbon tax
costs
emissions
Increased
Tightening of legal
restrictions
procurement costs
Increased
Increased flooding Suspension of
Production sites
frequency ofoperation/supply
extreme weather
chain collapse
eventsIncreased costs to
respond to flooding
Opportunities to Increased
Reduced sales of Diesel/gas engine
reduce GHG
pressure on
relevant businesses generators
emissionscarbon-positive
Ceramic membrane businessChanging mindset businessesof stakeholder
Rising average
Worse labor
Manufacturing/maintenance/
Increased
temperatureenvironment
personnel expenses construction service
at the sitebusiness units
Increased
Increased cost of Increased power All companies
proportion ofelectricity for
procurement costs
renewable energy industry*Examples of main scenarios

Step 3: Business Impact Evaluation

We are evaluating business impact through discussions with relevant parties within the
Company, such as the Management Planning Headquarters, the Accounting and Finance
Headquarters, the Governance Headquarters, and business units, based on the scenarios andoutlooks set out in Step 1 and the opportunities and risks set out in Step 2.
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Meiden Group CSR

In the course of this, we screened matters that have a particularly large impact on businesses
by focusing on the two axes of “impact on operating income” and “likelihood of occurrence in abusiness” in FY2030, and conducted detailed analysis of these matters.
Evaluation axes for selection of risks and opportunities (2030)
Impact on operating income(estimate)

Very large: ±10 billion yen or more
Large: ±1 billion yen or more
Medium: ±0.1 –1 billion yen
Small: ±less than 0.1 billion yen
Likelihood of occurrence in a
High: High probability of occurrence
business in 2030
Medium: Occurrence is possible, but cannot be
predicted with confidence
Low: Only occur in the scenarios
We grasped an expected value for each scenario with a large impact, based on market growthrate, its trend and so on. We made quantitative calculations with some assumptions, and used
qualitative methods for matters where calculation was not possible.
*The following values are mostly calculated based on market growth rate, and they are not apromise of the Company’s targets.

Step 4: Consideration of Response Measures

We considered development of strategies to grasp opportunities and measures to mitigate
risks according to the situation of the Company, based on the outcomes calculated in Step 3.

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Meiden Group CSR

Metrics and Targets

We see changes due to climate change as business opportunities, and are implementing
strategies to mitigate risks.
From a business perspective, we will particularly contribute to the creation of a carbon-freesociety through further expansion of the EV and Renewable Energy businesses. We also
released the Second Meiden Environmental Vision as our environmental goals in FY2021, andwe have disclosed 2030 GHG reduction targets for scopes 1, 2, and 3 in order to reduce
internal risks. These goals have received SBT recognition. We will work with our suppliers toachieve our targets.
In addition, we pledged to reach RE100 by 2040 and carbon neutrality by 2050, in November
2021, as our medium-to long-term targets.

*1 Main overseas production sites*2 Emissions volume increased as MEIDEN T&D (INDIA) LIMITED was added to the Meiden
Group through business expansion in FY2021.
The Meiden Group’s Medium to Long-term Environmental Targets

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Meiden Group CSR

Future Path

Although we have identified the growth opportunities and risks facing the Meiden Groupthrough analysis of scenarios based on the TCFD recommendations, in most instances,calculation of impact is merely a rough estimate, and further precision is needed. Furthermore,
we are promoting response to climate-related metric categories across multiple industries in
the TCFD recommendations, which require new disclosure. Along with this, we are considering
establishing ESG (environment, social, governance) metrics, incorporating them in ourstandards for calculating officers’ remuneration, and further strengthening governance, inorder to increase the effectiveness of sustainability management promotion.
TOPICS
Simulation of Business Portfolio RevisionDuring the formulation of the Meiden Group’s FY2030 greenhouse gas emissions
reduction targets, we conducted a simulation of net sales and emissions from abusiness portfolio revision regarding the product use stage (scope 3, category 11).

Meiden Group Scope 3, Category 11 Reduction Simulation< Note: The above graph is an estimate from a simulation and does not amount to
a commitment to a business plan >We found that by increasing the ratio of low carbon businesses with low emissions
per unit of sales such as EV, maintenance services, and small and medium-sizedhydropower generation, and we had a potential to comfortably achieve bothincreased sales and reduced emissions.

77

Meiden Group CSRTOPICS
Introducing Internal Carbon Pricing
Internal carbon pricing is a mechanism that creates an economic incentive to
reduce emissions and promotes investment by setting a carbon price in thecompany and using it to calculate the cost of greenhouse gas emissions.
Meidensha introduced an internal carbon pricing system in April 2021. We will
convert carbon emissions from capital investment plans to expenses using aninternal carbon price through the system. It will be a tool to make investment
decisions. For now, we will make ad-hoc reforms starting from the following
conditions.
Internal carbon price: 3,000 yen/t-CO2(be amended at any time in the future)
Subject to application: Capital proposals for FY2021 onwards (for the time being,
the system will be used for visualization, and will not incur any actual cost)78

Meiden Group CSRHome Sustainability

Environment

Prevention of Pollution and Effective Utilization of Resources

Environment

Prevention of Pollution and Effective Utilization of Resources
PolicyCommitment to Waste and Pollution Prevention

The Meiden Group is working to reduce the environmental impact of all domestic and overseas
business activities, as well as achieve energy efficiency, promote the 3Rs in relation to waste,
and reduce emissions of hazardous chemicals as stipulated in our Guidelines for Environmental
Action. Furthermore, we will establish our own internal standards and work towards preventing
environmental contamination while complying with all environmental laws, regulations, and otherrequirements.
Guidelines for Environmental Action
Initiatives

Targets for Measures to Combat Waste and Pollution
Reduction of single-use plastic packaging

The Meiden Group set a target of 1% reduction (compared to FY2019) as a measure to reduce
single-use plastic packaging. Going forward, we will continue to work to reduce plastic usage by
promoting the 3Rs for plastic packaging and environmentally considerate design.
Strategies, Initiatives, and Results Data

Targets and Initiatives for Reduction of Raw Material Usage
Promotion of the 3Rs for Product Components and Materials

The Meiden Group is working to design products that conserve and reuse resources.
Raw Material Input（t）
Raw Material
FY2019FY2020
FY2021
Iron
6,306
5,140
5,356
Copper
2,778
2,334
2,176
Plastic
778
781
789
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Meiden Group CSR

Raw Material
Aluminum
Total

FY2019334
10,196FY2020226
8,481

FY2021
223
8,544

Tightening Management of Chemical Substances

We are working to conduct risk assessment of chemical substances used at production sites,
etc., to improve the workplace environment, and reduce or substitute hazardous chemical
substances with a substantial risk.
In order to prevent workplace accidents, health impairment, and fire or environmental pollution
due to leakage or spillage of chemical substances, we routinely conduct patrols of sites where
chemical substances are used to alert workers, and take corrective measures where themanagement status of chemical substances is found to be inappropriate.

Tightening Management of Chemical Substances

Reduction of Volume of Volatile Organic Compounds (VOC)
Released

In FY2021, we promoted reuse of solvents through the introduction of solvent collection
devices, and replacement with low-VOC solvents, and we released 71.9 tons of VOC. Goingforward, we will promote improvement of varnish impregnation processes, substitution with low
VOC paint and solvents, etc., and reduction of VOCs released.

Volume of VOCs Released and Reduction Rate (Japan)

80

Meiden Group CSRPromotion of Disposal and Processing of Devices that Include
PCBs

In accordance with the Act on Special Measures concerning Promotion of Proper Treatment of
PCB Wastes (PCB Special Measures Act), we are gradually disposing of devices that contain
PCBs (polychlorinated biphenyls) such as transformers and condensers that were
manufactured in the past and stored for nearly to 40 years.
In FY2021, we disposed of 1.1 ton of waste containing high concentrations of PCBs andtreated 55.6 tons of waste containing low concentrations of PCBs.
Meidensha has been promoting disposal of PCB waste since FY2007, and by FY2021, we had
disposed of approximately 105 tons of waste containing high concentrations of PCBs andtreated 398 tons of waste containing low concentration of PCBs.
Going forward, we will continue to work to comply with laws and treat PCB waste by thetreatment deadline.

Volume Treated of Harmful Waste (Waste Containing PCBs)

Promoting the 3Rs for Waste (Reduce, Reuse, and Recycle)

Meidensha is working to recycle waste generated at production sites and offices.
In FY2021, we revised our calculation method for recycled quantity, and we worked to improve
the precision of calculation by appropriately calculating the amount of waste generated byrecycling. The amount of waste increased due to a large amount of waste (debris) being
generated by an increase in on-site construction; however, we will work to reduce the amountof waste generated by continuing to promote the 3Rs.

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Meiden Group CSR

Trends in Generation of Waste, etc., and Recycling Rate (Japan)* Construction sludge, etc., is excluded from the amount of waste, etc., generated.
* Since FY2019, we have revised aggregation methods to improve the precision of recycling
rate calculation.

Breakdown of Waste Generated in FY2021 (Japan)

Collaboration with Other Companies to Reduce Waste and Resource Use (Recycling
Epoxy Resin Molded Components)

Meiden Chemical Co., Ltd., which is a group company involved with manufacture and sale ofelectrical insulators has realized the recycling of used epoxy resin molded components as raw
materials by using a method of depolymerization under ordinary pressure, which separates themetal from the resin. Epoxy resin molded components are generally disposed of in landfill as
they are considered difficult to recycle; however, Meiden Chemical Co., Ltd. has licensed thepatented room temperature dissolution method from Showa Denko Materials Co., Ltd. (formerly
Hitachi Chemical Co., Ltd.), which enables it to recycle 95% of existing components, as well as
control cost than sending them to landfill. During recycling, we conduct lifecycle assessment(LCA) according to data obtained at the testing plant, which quantitatively assesses
environmental impact if recycled and if not recycled.
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Meiden Group CSR

In addition to insulating molded components, Meiden Chemical Co., Ltd. is working to roll out
insulating material products as major flagships with features such as long-life resin for
impregnation and environmentally friendly low-odor varnish. Meiden Chemical Co., Ltd. iscurrently engaging in research such as extraction of rare metals by dissolving insulating varnish
from superconducting coils and recycling of fiber-reinforced plastic to produce resources
again.

Flow chart of dissolution recycling of epoxy resin molded components

Dissolution plant exterior

83

Meiden Group CSRHome Sustainability

Environment

Water Resources

Environment

Water Resources
PolicyThe Meiden Group will work on implementing measures to promote water resource
conservation activities by utilizing water resources efficiently and respond to water risk that
impacts business activities, as a step toward conservation of the global environment andrealization of a sustainable society.
We will contribute to the solution of a range of social issues relating to the conservation ofwater resources through our businesses.
Plan and Targets

The Meiden Group includes “promotion of water reuse” and “water safety” as part of themedium- to long-term “Environmental Vision.” We will work on promoting activities to preserve
water resources through water conservation and effective utilization of rainwater, andimplement measures to respond to water risks such as water shortage, flood, andcontamination.
Initiatives

Water Infrastructure Revision Plan

In the Meiden Group, we are reporting and checking information concerning intake anddischarge of water resources at the Environmental Committee to grasp the condition, with theaim to promote “promotion of water reuse” and “water safety.” We also conducted evaluationof water risks at each manufacturing site in Japan, and status reports were made to the ESG
Management Promotion Committee (current the Sustainability Management Promotion
Committee).
As a result, we confirmed that the water infrastructure was aging at the Numazu Works, whichis the main manufacturing site in Japan, and we plan to review equipment in order of priority,
including from the perspective of BCP. Because of this we will conduct revision, includingreconstruction of the water supply system and provision of water treatment tanks at the
Numazu Works, as a matter of priority. In particular, in FY2022, we will start by designing water
treatment tanks that are aimed at the future.

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Meiden Group CSR

Water Risk Assessments

The Meiden Group conducts evaluation of water risk for initiatives to conserve water andcomply with effluent standards. Using the free water risk evaluation tool, Water Risk Filter,
provided by the World Wide Fund for Nature, we conducted evaluations for 14 production sites
in nine countries, and although many sites were assessed low risk, some sites in India and China
were considered to be located in comparatively high-risk areas, and we found that risks relating
to securing volume and quality of water were particularly high.
These sites do not use large quantities of water for production so there is no great concern at
this time; however, based on the results of the evaluation, the Meiden Group takes the optimal
countermeasures for each site based on the water risk assessment results.
Water Risk Assessment Results for Regions Where Production Bases are LocatedInitiatives and Actual Data

Reducing Water Consumption

There are water temperature management stations to limit algal blooms in on-site fire cisterns
through water discharge and supply. To limit discharge volume, we are working to reduce water
consumption through automatic control using water temperature sensors.
We are concerned about the possibility of water leaks as groundwater and surface water
buried pipes age. We are systematically updating the pipes and placing them above ground foreasier maintenance and inspections.

Discharge control valve

Above-ground industrial
water pipes at a factory
85

Meiden Group CSR

Trends in Water Usage Volume (Japan)* Water usage volume includes tap water, water for industrial use, andground water.
* Measurement points were changed in fiscal 2021 in order to increase
accuracy, there is no continuity with those in fiscal 2020 and before.
Trends in Effluent by Discharge Location (Japan)

We ensure legal compliance by establishing and applying at each site and subsidiary voluntarystandards that are stricter than legal restrictions.
Trends in BOD Emissions (Japan)

BOD

FY2018
7,389 kg

FY20194,843 kg

FY20206,424 kg

FY2021
6,408 kg

Initiatives

Conservation of Water Resources: Initiatives through BusinessContributing to the Solution of a Range of Issues Relating to Conservation of Water
Resources

In addition to design, construction, and execution of water treatment plants, the Meiden Group
provides total support through to operation and maintenance as a general water treatment
manufacturer, based on our record of involvement with construction and development of waterand sewerage systems in Japan. We are contributing to the solution of a range of issues
relating to the conservation of water resources through or water infrastructure systems
86

Meiden Group CSR

business, which is one of our core businesses.
Click here for details of products and services relating to water treatment.

Contribution to Local Water Disaster Prevention Through Real-Time Flooding Updates
Delivery of Flooding Information System That Uses Smart Flood Level Rods to SagaCity

We delivered a flooding information system that uses smart flood level rods (automatic floodlevel measurement rods) to Saga City. Saga City began using this system to provide a disasterprevention information service concerning flood levels to residents and others on April 25,
2022.
Saga City developed the Saga City Basic Plan on Wastewater Measures (March 2014) to deal
with increasing flood risk due to rain inundation as a result of downpours increasing infrequency and severity in recent years due to climate change. The city aims to create a “cityand populace that is resilient against flooding” by implementing software measures such as
creating and disseminating hazard maps in addition to hardware measures such as installing
pump stations, channels, and balancing reservoirs. As one of these measures, the city installed
flood level rods in 83 locations in the city, and is actively promoting utilization of information for
self, mutual, and public assistance to prevent disasters as part of increasing awareness offlooding.
Until now, flood level rods have been relied on for reading and reporting by citizens anddisaster volunteers. Now, real-time disaster prevention information can be used for flood
protection activities due to the expand of automatic measurement. Up to FY2021, we havepartnered with Saga City to conduct demonstration experiments of real-time monitoring
systems using automated flood level rods. The systems were installed in practical use in 29
locations throughout the city.
We received an order from Saga City to build a flood information provision system to notify
residents, etc., with the aim of further utilizing disaster prevention information obtained
through automated flood level rods (smart flood level rods), and delivered the system in March
2022.
What is a Smart Flood Level Rod?

A smart flood level rod is an IoT device comprising a rod (pole) fitted with a transmitter, anantenna, and a battery. It gathers flood information in real time, and provides it via the cloudcomputing.
Product Features

It is possible to wirelessly transmit, gather, and provide information via the cloud computing,using LPWA transmission devices fitted to rods
It is possible to supply power to sensors and transmission devices from batteries mounted on
the rods
It is possible to monitor flood levels in real time, simply by installing rods on roads＜Diagram of smart flood level rod application＞

87

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88

Meiden Group CSRHome Sustainability

Environment

Biodiversity

Environment

Biodiversity
PolicyPolicy on the Conservation of Biodiversity

The Meiden Group relies on the blessings of nature, which has biodiversity at its core, while its
activities also have an effect on the natural environment. The Meiden Group aims to minimize
this impact, create new symbiotic relationships, and contribute to the creation of a sustainable
society.
The Meiden Group understands that the conservation of biodiversity is a major issue to be
faced in order to achieve a sustainable society, hence reflects its ethos on biodiversity
conservation in the Meiden Group’s “Basic Environmental Philosophy,” “Environmental Policies,”and “Environmental Vision.”
Furthermore, we have drafted guidelines on the conservation of biodiversity in order to clearlystate the relationship between our business activities and preserving biodiversity and we areapplying them in our business activities.

Meiden Group Biodiversity Guidelines
Basic Policy

We understand that our business activities benefit from the blessings of nature and at thesame time, give various environmental impacts. We will deepen our people’s understanding of
the importance of “Conserving Biodiversity” and contribute to realizing a sustainable society
through our products and innovative technologies.

Action Guidelines① We will contribute to conserving biodiversity through the development and supply ofenvironmentally conscious products and innovative related technologies and thus promote ourwater processing business and renewable energy-related business and reduction of the use ofhazardous chemical substances in our products.
② We will clarify how our business activities interrelate with biodiversity and we will help toconserve biodiversity by reducing the environmental impacts of our business activities.
③ We will comply with applicable laws, regulations, and international rules relating tobiodiversity.
④ We will deepen our people’s understanding of “Conserving Biodiversity” and we will takevoluntary related initiatives at home and abroad.
⑤ We will undertake activities in cooperation with our stakeholders such as local communities,
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Meiden Group CSR

non-profit organizations (NPOs), non-governmental organizations (NGOs), governments, etc.,
and we will promote environmental communication with such activities’ information.

Map of Relationships Between Business Activities and Biodiversity* This map is based on the Business & Biodiversity Interrelationship Map® of the Japan
Business Initiative for Biodiversity (JBIB).
Initiatives

The Meiden Group is actively conducting protection and conservation activities in conjunction
with local residents for nearby creatures, etc., on Meiden property and elsewhere, at eachlocation.

A Head Office Building That is Considerate of Biodiversity

The ThinkPark Tower head office building in Osaki, Shinagawa City, Tokyo, is surrounded by theThinkPark Forest on a block that is approximately 40% greenery. It is an oasis in the city andprovides a relaxing space for employees and the local community.
Also, the Kazenomichi Path, which was designed so that the prevailing wind blows from the
Meguro River and Tokyo Bay, provides relief from the heat island effect. ThinkPark Forest has
been certified as an “urban oasis” by the Social and Environmental Green Evaluation System(SEGES).** A certification system for evaluation of green initiatives.。
SEGES

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Meiden Group CSR

ThinkPark Tower

ThinkPark Forest

Initiatives at Each Site for the Conservation of Biodiversity

At each site of the Meiden Group, we are working to conserve biodiversity on the grounds ofeach site and nearby.

Head Office Area

Osaki – Fixed-point Observation

We hold events to appreciate sites in the green area (ThinkPark Forest) surrounding our head
office (ThinkPark Tower) and share this information throughout the Company.

Internal PR Pamphlet: Osaki – Site
Appreciation News

Ikimono Log (Living Nature Log)

In the head office area of Osaki, Shinagawa Ward, Tokyo, we take pictures of the organismsthat live in the vicinity of the head office building and post them on the Ikimono Log (Living
Nature Log) website operated by the Ministry of the Environment. We hope to create a
database with information on the organisms that live in the area.

Brown-eared bulbul

Warbling white eye
91

Asian swallowtail butterfly
Meiden Group CSR

Click here to view Ikimono Log.

Participation in Ohana Ippai Osaki Activities

At head office and a group company (Meiden Engineering Corporation), we prepared soil inflower beds near Osaki Station, which are managed by Osaki Machi Unei Kyougikai, along withco-sponsors. Going forward, we will continue to actively participate in activities that leaveabundant nature for future generations.

Numazu Works

The Numazu Works is blessed with the bounty of nature such as a green zone (area =approximately 65,000 m2) and groundwater. We are conducting activities to use these natural
resources in a sustainable manner and contribute to the community.

Maintaining Biotopes

Through the survey of organisms, we discovered Atrocalopteryx atrata dragonflies, which areclassified as class II endangered species, at the Numazu Works. We are maintaining a good
biotope in the hope that the dragonflies will lay their eggs.

Donation of Trees to Senbonhama Park

In 2022, we donated 125 black pines to Senbonhama Park in Numazu to commemorate our125th anniversary. The trees were planted by Meiden Group Employees.
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Meiden Group CSROta Works
Botanical Survey of On-Site Green Zone

At the Ota Works, we conducted an on-site botanical survey and found more than 30 varietiesof trees. We included the results of the survey on the Ota Works Green Zone Map and we will
apply the knowledge gained fur future utilization of the green zone.

Ota Works Green Zone
Map

Kanayama Red Pine Grove Conservation Activities

The red pine grove in Kanayama is the most well-known natural landscape in Ota City.
Kanayama Castle was created using the natural contours of Kanayama and it is a precious
historic site that is listed in the top 100 castles in Japan. The Ota works is registered as part of
the “red pine managing owner system” and we work to conserve the red pine grove byparticipating in activities such as weeding.

Discontinued Selling PET Bottles at Our Facilities

The problem of marine pollution caused by plastic waste has spread over a wide area, andthere are concerns that it can adversely affect the ecosystem, living environment, fisheries,
tourism, etc. The use of plastic bags has been abolished since July 2020 at on-site shops in the
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Meiden Group CSR

Meiden Group's Numazu Works and Ota Works. Shops prepare eco-bags instead of using
plastic disposable bags at the checkout. We conducted e-learning for all Meiden Group
employees concerning the problem of marine plastic waste, and stopped selling PET bottles
from all vending machines at Numazu Works in December 2021. We are reducing plastic waste
by eliminating the use of PET bottles, which had previously totaled 500,000 bottles per year.

Vending machine after
Educational poster
concerning the problem of cessation of sale of PET
bottlesmarine plastic waste

The Biodiversity Working Group, the Four Electrical and Electronic
Industry Associations

FY2011. As a member of the industry, we are promoting our biodiversity initiatives through theactivities of the working group and enhancing our own efforts.
Click here to view information on the Electronic Industry Associations
Biodiversity Working Group.

* The Japan Electrical Manufacturers’ Association (JEMA), the Japan Electronics andInformation Technology Industries Association (JEITA), the Communications and Information
network Association of Japan (CIAJ), and the Japan Business Machine and Information System
Industries Association (JBMIA)

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Meiden Group CSRHome Sustainability

Environment

Promotion of Environmental Communication

Environment

Promotion of Environmental Communication
PolicyThe Meiden Group engages in two-way communication with all our stakeholders, which is
intrinsically linked to the development of our environmental activities. We also actively disclose
information on our activities and their results.
Initiatives

Promotion of Environmental Communication

The Meiden Group is working to create relationships of trust in order to remain to be acompany that is needed by society.
We actively release information concerning our environmental conservation activities andenvironmental impact through our website. We reflect the opinions and needs expressed by our
stakeholders in the Meiden Group’s environmental activities and environmental training.

Environmental Communication
Organization Chart95

Meiden Group CSR

FY2021 Initiatives

Meidensha Participated in the WIPO GREEN Environmental Technology Platform
as a Corporate Partner

Meidensha participated in WIPO GREEN, which is an environmental technology platform
operated by the United Nations World Intellectual Property Organization (WIPO), as a corporate
partner. Meidensha has already started registering its patents for environmental and related
technologies with WIPO GREEN, and aims to share environmental technologies throughout theworld through WIPO GREEN. We will contribute to the realization of a sustainable society, suchas achieving a carbon-free society and addressing climate change, by increasing opportunities
for many people to use our environmental technologies.

What is WIPO GREEN?
WIPO GREEN is an online platform that connects intellectual property holders to potential users
with registering environmental technologies and needs for such technologies around the world.
It was established in 2013 by WIPO for the purpose of the facilitating transfer of environmental
technologies.
Since operation commenced in 2013, more than 3,500 technologies have been registered in
the WIPO GREEN database, serving more than 1,900 users.
As of March 2022, 137 institutions around the world have participated in the platform,
including 40 (25 of which are companies) in Japan.
WIPO GREEN website (English only)
We have already registered our Ecotank Vacuum Circuit Breaker* as an environmental
technology, and we plan to register more technologies in the future.
We have been operating businesses based on the sustainability management as part ofMedium-term Management Plan 2024, which started in April 2021, in order to contribute to therealization of a carbon-neutral society through environmentally friendly products and services.
Going forward, we will pursue manufacturing that contributes to society through our business
operations and achieve sustainable value creation.
At the same time, we will work to promote the use of environmental technologies through thedevelopment of such technologies as well as the intellectual property-related activities tocontribute to solving social issues, as a WIPO GREEN corporate partner.
* Ecotank Vacuum Circuit Breaker:
In 2004, Meidensha succeeded in developing a 72-kV-class tank type vacuum circuit breakerwithout using sulfur hexafluoride (SF6) gas at all, which has 20,000 times the greenhouseproperties of CO2, and has a record of delivering more than 2,000 units to domestic andoverseas electricity companies, etc. In 2020, we developed a 145kV-class model to meet highvoltage requirements. This is the world’s first dry air insulation tank type vacuum circuit breaker
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Meiden Group CSR

of this voltage class. In October 2021, the first unit was shipped to a power company in the
U.S. state of Alaska.

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Meiden Group CSRHome Sustainability

Environment

Foster Environmental Awareness

Environment

Foster Environmental Awareness
PolicyThe Meiden Group believes that increasing each person’s environmental awareness leads toenvironmental contributions to society.
Initiatives

Foster Environmental AwarenessWe conduct education relating to environmental initiatives such as environmental management
and environmentally conscious design as part of the regular curriculum for employee
education, which is conducted for each level of employee such as new employees, newmanagers, and candidates for executive roles.
Furthermore, we promote environmental activities at each site, conduct internal auditor
education, etc., for personnel that are involved with work that impacts the environment, andconduct specialist education as necessary.

Environmental Education (e-learning) for All Meiden Group Staff

Each year, we conduct environmental education for all staff of the Meiden Group, including
officers, through e-learning. In FY2021, we conducted environmental education with the themeof “greenhouse gas emissions reduction by the Meiden Group.” Of the Meiden Group’s staff,
87.3% attended online, and materials were circulated to those who missed it. The attendance
rate exceeded the FY2020 rate (83.6%) by 3.7%.
This was an opportunity for all staff of the Meiden Group to think about greenhouse gas
emissions reduction, and the attendees shared the following opinions and impressions.
<Examples>
This was a good opportunity to learn about Meidensha’s environmental initiatives.
I want to learn more about examples of Meiden’s products and initiatives.
I understood greenhouse gas emission reduction targets, but not what specifically needed
to be done to meet those targets.

Promoting Acquisition of Certification Test for Environmental Specialists (EcoTest)® Certification

We promote acquisition of Certification Test for Environmental Specialists (Eco Test)®
certification provided by the Tokyo Chamber of Commerce and Industry, and provide support
for examination costs and provide sample questions, etc., through e-learning. In the December
test in FY2021, our pass rate was 87%. We have 841 Eco Test certification holders as of March98

Meiden Group CSR

2022. We will provide a bonus from FY2022 to FY2024 for people who have acquired
qualifications, as part of promoting acquisition of qualifications.
* Eco Test® is a registered trademark of the Tokyo Chamber of Commerce and Industry.

Specialist Education

We conduct specialist education as necessary at each site, conduct internal auditor education,etc., for employees that promote environmental activities or are involved with work that impacts
the environment. In FY2021, we conducted education concerning LCA (life-cycle assessment)
and complying with the revised TSCA* in the US, at factories. We also conducted education for
the Sales Business Unit concerning treatment of waste.
* Prohibition and limitation of five PBT substances under Article 6 of the Environmental
Protection Agency’s (EPA) Toxic Substances Control Act (TSCA)

Education Concerning Environmental Laws

We conduct education of environmental laws and regulations as part of our compliancetraining. In FY2021, we held lectures concerning Waste Management and Public Cleansing Act(Waste Disposal Act) and the PCB Special Treatment Act , etc. We provide our employees with
opportunities to recognize the importance of compliance by explaining cases of legal violations.

Environmental Management Seminars for Management-Level Employees

Each year, we invite outside experts to hold environmental management seminars for management.
Date
Theme
Instructor (affiliation, role, etc., are those at thetime)
12/21/2017 Increasing
Toshihiko Goto
expectations for
CEO of Sustainability Forum Japanenvironmental
Chairperson and executive director of Global Compact
management: ESG Network Japan
investment, SDGs,
and TCFD
recommendations todisclose climaterelated financial
information, etc.
12/21/2018 Toward the utilization Yoriyuki Numakuraof SDGs
Manager of KPMG AZSA Sustainability Co., Ltd.
06/21/2019 Trends in ESG
Mari Yoshitaka
investment andChief Consultant, Clean Energy Finance Division,
information
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
disclosure: TCFD
recommendations

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Meiden Group CSR

12/11/2020 The Meiden Group’s Yoshihisa Niwa
CO2 reduction plan to Managing director and partner of the Boston
achieve SBTs
Consulting Group Shoji Hajime
Managing director and senior partner of the Boston
Consulting Group Makoto Morihara
Principal of the Boston Consulting Group
05/26/2022 Latest trends in
Kosuke Terasaki
disclosure of
Senior Researcher
corporate
Sustainability Sec., Risk Management Department 3rd
information
MS&AD InterRisk Research & Consulting, Inc.
concerning climatechangeResults Data

Environmental Education Results (FY2021)
Content
Environmental
education (e-learning)
Specialist education

Education concerning
environmental laws

Times Number of
Outlineconducted participants
1
7,088
Reducing greenhouse gas
emissions at the Meiden Group22－
LCA education
Education concerning revision of
US TSCA
Waste treatment education
12
1,800
Laws relating to the environment
Examples and causes ofcontraventions
Meidensha’s compliance status
Management of chemical
substances according to law
The PCB Special Treatment Act
The Waste Disposal Act

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Meiden Group CSRHome Sustainability

Environment

Overview of Environmental Impacts by Our Business Activities

Environment

Overview of Environmental Impacts by Our Business Activities

The Meiden Group finds out the overview of environmental impacts by our business activities
and uses this information to plan specific activities.

Overview of Environmental Impacts by Our Business Activities(FY2021)

Our rate of use of major resources (INPUT) and our environmental impacts from our businessactivities (OUTPUT) are shown below.

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Meiden Group CSRHome Sustainability

Environment

Environmental Impact Data (FY2021) From the Four Main Manufacturing Sites (Domestic Manufacturing S

Environment

Environmental Impact Data (FY2021) From the Four Main
Manufacturing Sites (Domestic Manufacturing Sites)
Numazu Works

Message From the Environmental Manager
The Numazu Works is the main factory of the Meiden Group and conducts development,
design, and manufacture of supervisory control equipment, power conversion equipment,
power transformers and distribution panels, motor control equipment(inverters), electronic
products, and surge arresters, development of software for integrated control devices andstandalone, and on-site installation, and after-sales service for products.
At Numazu Works, we are promoting efficient energy use through capital investment andreform of equipment operation and are advancing replacement of SF6 gas with drycompressed air, as a measure to reduce emissions of SF6 gas, which is a particularly potent
greenhouse gas, in the product testing process. In FY2021, we completed the change to an
SF6 gas-free test for part of our production line as a measure to reduce SF6 gas emissions.
Going forward, we will continue to expand SF6 gas-free testing, and work to stop global
warming.
Numazu Works, Environmental Manager, Masanori Fukumoto
Environmental Impact Data (FY2021)

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Meiden Group CSROta Works

Message From the Environmental Manager
The Ota Works conducts development and manufacture of large electric generators, power
generation equipment, dynamometer systems, and control equipment, etc.
In addition to previous environmental activities, this fiscal year, we procured CO2-free electricity
that is produced and consumed within Gunma Prefecture, and achieved zero greenhouse gas
emissions from electricity consumption.
Ota Works, Environmental Manager, Manabu Fujikawa
Environmental Impact Data (FY2021)

Nagoya Works

Message From the Environmental Manager
The Nagoya Works develops and manufactures logistics transportation products, and ceramic
membranes used for water treatment.
In FY2021, our factory for integrated motor and inverter units for EVs commenced fulloperation, and although our emission of greenhouse gases increased due to increased
production of ceramic membranes, we worked to achieve efficient operation of equipment, andproductivity increased. As the rate of decarbonization is increasing and technology forelectrification, computerization, and artificial intelligence of electric vehicles is evolving rapidly,
Nagoya Works is focusing on electrification and will continue to contribute to society throughfuture automation of automobiles.

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Meiden Group CSRNagoya Works, Environmental Manager, Tomohisa Asakura
Environmental Impact Data (FY2021)

KOFU MEIDENSHA ELECTRIC MFG. CO., LTD.

Message From the Environmental Manager
Since its foundation in 1943, KOFU MEIDENSHA ELECTRIC MFG. CO., LTD. has been
manufacturing small and medium-capacity industrial motors and forklift motors, and has been
manufacturing EV motors since 2009.
In FY2021, our new factory for EV motors commenced full operation, and although ouremission of greenhouse gases increased, we worked to achieve efficient operation ofequipment, and productivity increased. In FY2022 we will procure renewable energy for someof our electricity usage, and reduce our emissions of greenhouse gases.

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Meiden Group CSRKOFU MEIDENSHA, Environmental Manager, Oda Shigehiro
Environmental Impact Data (FY2021)

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Meiden Group CSRHome Sustainability

Environment

Third-Party Verification

Environment

Third-Party Verification

In order to ensure the release of more accurate and reliable environmental performance data
for FY2021, we have been examined by the Japan Audit and Certification Organization forEnvironment and Quality.

Click pics to enlarge.

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Meiden Group CSR

Target Items
Amount of greenhouse gas emissions[t-CO2e]
Scope 1
14,267 t-CO2e
Scope 2
25,160 t-CO2e(location basis)
21,478 t-CO2e(market basis)
Scope 3 (Category 1) 550.3 kt-CO2e

Water

Scope of calculation
Scope 1 and 2 greenhouse gas emissions
from the business activities of Meidensha
and domestic Group companies during
the period from April 1, 2021 to March
31, 2022.

Category 1 emissions (scope of
calculation is based on Meidensha’s
determination) from the businessactivities of Meidensha during the period
from April 1, 2021 to March 31, 2022.
(Category 11) 4,717.9 kt-CO2e Category 11 emissions (scope of
calculation is based on Meidensha’s
determination) from the products andservices of Meidensha during the period
from April 1, 2021 to March 31, 2022.
Usage
1.8341
million Water usage volume (amount purchased
3
volume(Amount m
and amount collected) from the businessof water
activities of Meidensha and domestic
purchased andGroup companies during the period fromwater intake)
April 1, 2021 to March 31, 2022.
Discharged
2.2582
million Discharged water volume from the3water volume mbusiness activities of Meidensha anddomestic Group companies during theperiod from April 1, 2021 to March 31,
2022.

Assessment Standards

JACO certification standards based on ISO 14064-3 and ISAE3000
ISAE3000: International Standard on Assurance Engagements (ISAE) 3000
ISO14064-3: Specification with guidance for the validation and verification of greenhouse gas
assertions

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Meiden Group CSRHome Sustainability

Environment

Issue of Green Bonds

Environment

Issue of Green Bonds

In July 2019, we issued green bonds through public offering for the purpose of funding massproduction equipment for Motors and Inverters for Electric Vehicles.
In June 2018, Meidensha pledged to reduce greenhouse gas emissions by 30% by fiscal 2030
(compared to fiscal 2017 levels) and as part of the First Meiden Environmental Vision and weare promoting reduction of environmental impact. Furthermore, we understand that
contributing to the achievement of sustainable development goals (SDGs) is a major
management issue facing the Company and we are promoting the environmental contribution
business by rolling out environmentally conscious products and services.
By issuing green bonds, we plan to expand our capital procurement resources and deepen theunderstanding of a wide range of stakeholders regarding our active environmental initiatives.

Meidensha Green Bonds
OutlineName of bonds
Also known as
Maturity
Total amount of issue
Coupon rate
Issue priceDate of issue/date of
maturity
Redemption method
Subscription method
Security/guarantee
RatingUse of proceeds"Meidensha Corporation 2nd Series Unsecured Straight
Bonds (with pari passu agreement limited to corporate
bonds) (Green Bonds)"
Meidensha Corporation Green Bonds
5 years
6.0 billion yen
0.260％
100 yen for each 100 of corporate bonds
July 23, 2019 to July 23, 2024
Bullet payment at maturity
Open invitation
Unsecured and non-guaranteed
BBB+ (Japan Credit Rating Agency, Ltd./Rating andInvestment Information, Inc.)
To provide partial funding of enhancement of massproduction facilities for electric vehicle components
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Meiden Group CSR

Lead managing underwriter
Green Bond
Structuring Agent
Principles with which toconfirm compliance

SMBC Nikko Securities Inc.
SMBC Nikko Securities Inc.
Climate bond standard version 2.1
Low Carbon Transport (Land) Standard Version 1.0 (CBI)Green Bond Principles 2018 (ICMA)
Green Bond Guidelines 2017 Edition (MOE)

List of investors that have declared their investment in corporatebonds(As of July 17, 2019 in alphabetical order)
Aichi Shinkin Bank
Daitokyo Shinyokumiai
Fukoku Mutual Life Insurance Company
Hanno-Shinkin BankJA Bank Fukuoka
JA Bank Ibaraki
JA Bank Iwate
Kameari Shinkin Bank
Kesennuma Shinkin Bank
Kiryu Shinkin Bank
Kitami Shinkin Bank
Meiji Yasuda Asset Management Company Ltd.
Sugamo Shinkin Bank
Sumitomo Mitsui DS Asset Management Company, Limited
Sumitomo Mitsui Trust Asset Management Co., Ltd.
Taiyo Life Insurance Company
THE BANK OF NAGOYA, LTD.
THE DAIDO FIRE AND MARINE INSURANCE COMPANY LIMITEDTHE KAGAWA BANK, Ltd.
THE TOWA BANK, LTD.
Tokio Marine & Nichido Fire Insurance Co., Ltd.
Tokio Marine Asset Management Co., Ltd.

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Meiden Group CSR

External Evaluation of ComplianceGreen bond framework

Meidensha Green Bonds are issued and managed according to the Green Bond Framework
developed in accordance with the Green Bond Principles 2018*1 drafted by the International
Capital Market Association, the Green Bond Guidelines 2017*2 Edition drafted by the Ministryof the Environment, and the Climate Bond Standard Version 2.1*3 drafted by the Climate
Bonds Initiative (CBI).

Second-party opinion and ratings

Compliance with these green bonds is assessed by the Japan Credit Rating Agency (hereinafterJCR) according to the JCR Green Bond Evaluation, and the bonds received a rating of Green 1,
which is the highest rating, as they fulfilled the Green Bond Principles 2018 and the Green
Bond Guidelines 2017.
JCR green bond assessment attached

Verification

DNV GL Business Assurance Japan K.K. (DNV GL), one of the world's leading organizations toevaluate and accredit the ESG performance, has verified that Meidensha Green Bonds cleared
the requirements in the Climate Bonds Standard Version 2.1 as well as related technologicalstandards.
Pre-assessment report issued by DNV GL

Certification

Meidensha has received certification from Climate Bonds Initiative (CBI), an international
nongovernmental organization dedicated to promoting large-scale investments to realize a lowcarbon society that sets stringent standards for the issuance of such bonds. Meidensha is thefirst Japanese private enterprise to receive the CBI certification.
Additionally, JCR and DNV GL has received the notification of Green Finance Organization
JAPAN’s decision to grant as subsidy as part of the Financial Support Programme for Green
Bond Issuance of MOEJ’s FY 2018*4.

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Meiden Group CSR

Green bond framework
1. Use of Proceeds

Eligible green project: Equipment for mass production of electric vehicle components
Outline of facility expansions(Total investment: Approx. 7 billion yen)
Nagoya Works: Renovation of existing buildings and introduction of new facilities
Location
496 Ittangosewari, Nishibiwajimacho, Kiyosu City, Aichi
Prefecture
Parts to be produced
Inverter-Integrated Motor Units for EVs
Start of operations
Scheduled for November 2019
Total floor space
4,620m2
Production capacity
Maximum annual production of 170,000 units
Kofu Meidensha Electric Mfg. Co., Ltd.: Construction of new building and introductionof new facilities
Location
825 Nakadate, Chuo City, Yamanashi Prefecture
Parts to be produced
Motors for EVs
Start of operations
Scheduled for November 2019
Total floor space
2,660m2
Production capacity
Maximum annual production of 170,000 units
Numazu Works: Expansion of facilities
Location
515 Kaminakamizo, Higashimakado, Numazu City, Shizuoka
Prefecture
Parts to be produced
Inverters for EVs
Start of operations
Scheduled for April 2019
Total floor space
240m2
Production capacity
Maximum annual production of 120,000 units

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2. Process for Projects Evaluation

Nominated green bond projects were selected and evaluated by Meidensha Accounting &Financing Group Financing Division, after the consideration of conformity to qualified criteria,
based on the Group's management philosophy, environmental vision, and CSR critical issues.
Final approval of the project selection is implemented by the director of treasury executives of
the company decision making committee. Furthermore, we also conduct verification of negativeenvironmental impact of eligible projects.

3. Management of Proceeds

The proceeds from the Green Bonds will be fully allocated to eligible projects and assets andtracked. Fund allocation will be implemented in one year after bond issuance. The proceeds will
be managed by the Meidensha Accounting & Financing Group Financing Division. The proceeds
outstanding balance will be managed by internal Meidensha forms (earmarked by numbering)and its budget and actual expense tracked with Meidensha internal protocol (accounting
management scheme) quarterly. These will be requested to receive approval from the
Meidensha General Manager of Financing Division to avoid deviation (financial outflow).
Meidensha also manages the preservation of documents related to cash management by using
the accounting document retention term list and through the accounting regulations of
Meidensha concerning the scope and preservation of accounting documents.
Until the allocation of procurement funds is decided, we will manage cash or cash equivalents
equal to funds.

4. Reporting

Funding status reporting

We will report the status of funding once a year until the full amount of funds to be procured isapplied to projects that meet qualified criteria. Disbursement status disclosed is as follows: (1)Amount of funds appropriated, (2) Approximate amount or ratio in case of unappropriatedfunds, operation schedule of allocated time, and unappropriated period, (3) Estimated amountor percentage when the refund is applied.
We will disclose in a timely manner if there is a major change in the procurement funding planor when there is a significant change in the fund status after the procurement funds havestarted to be appropriated.

Impact reporting

Until Green Bonds are redeemed, the following indicators showing the progress status ofqualified projects funded and the environmental improvement effect are scheduled to bedisclosed once a year on our website.
KPI in Impact Reporting: Annual CO2 emission reduction from eligible projects*5*1 The guideline regarding green bond Issuance is written by Green Bond Principles Executive
Committee which is facilitated by ICMA (International Capital Market Association.)

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*2 MOEJ (Ministry of the Environment of Japan) has established “the Green Bond Guidelines,
2017” in March 2017 with the purpose of spurring issuances of Green Bonds and investmentsin them in Japan. The Guidelines, with due consideration to the consistency with the GBP, which
is widely accepted in the Green Bond markets in the world, provide issuers, investors and othermarket participants with illustrative examples of specific approaches and interpretations
tailored to the characteristics of the Japan's bond market which will aid these market
participants to make decisions on working-level matters related to Green Bonds.
*3 Climate Bonds Standards (CBS) is a standard developed by Climate Bonds Initiative (CBI),
the UK’s international nongovernmental organization, which includes certification process, preissuance and post-issuance requirements and sectoral eligibility and guidance. And is aimed
with the objective of “Ensuring credibility and transparency of Green Bond’s contribution to theenvironment. CBS imposes a sectoral standard, and it is necessary to meet the applicablesectoral standard in judging the eligibility of projects and assets covered by the green bond.
*4 A program where subsidies will be provided for the expenses that are required by those who
support companies, municipalities and other bodies who seek to issue Green Bonds, in the formof granting external reviews, consultation on establishing a Green Bond framework, etc.
(1) A Green Project that meets one of the following criteria:
1. Contributes mainly to domestic decarbonization (renewable energy, energy efficiency,
etc.)
Projects for which equal to or more than half of the procured amount, or equal to or
more than half of the number of projects is domestic decarbonization-related
project.
2. Has high decarbonization and effects on vitalization of local economy
Decarbonization effects Those whose subsidy amount per ton of domestic CO2
reduction is less than the specified amount.
Effects on vitalization of local economy Projects that are expected to contribute toeffects on vitalization of local economy as part of the ordinance and plan, etc.
decided by the municipality, projects for which investment by municipalities can be
anticipated, etc.
(2) Compliance with the Green Bond Guidelines to be confirmed by an external review
organization before issuance.
(3) It cannot be “Green wash” bonds.
*5 The formula for calculation differs from Meidensha’s calculation of environmental
contribution and CO2 emissions reduction, which are stated under Meidensha’s environmental
targets, as they are calculated according to the ICMA Green Bond Principles 2018, the MOE
Green Bond Guidelines 2017, the CBI Climate Bond Standard Version 2.1, and the Low Carbon
Land Transport and the Climate Bonds Standard (v1.0).

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Meiden Group CSRThis content is provided for the sole purpose of publicly announcing the Company’s
issuance of the Bonds, and not for the purpose of soliciting investment or engaging in any
other similar activities within or outside of Japan.

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Meiden Group CSRHome Sustainability

SocialSustainability

Social

Product Responsibility

Supply Chain Management

Human Rights

Labor Practices

HR Development

Occupational Safety and HealthCommunity

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Meiden Group CSRHome Sustainability

Social

Product Responsibility

Social

Product Responsibility
Policy“Illuminating a more affluent tomorrow”“For customer peace of mind and satisfaction”
We value our attitude of embracing the challenge of continuing to meet the expectations ofcustomers and society and our spirit of craftsmanship (Monozukuri) to supply high-quality
products and services, help our customers to solve issues, focus on activities to eliminate
defects, and ensure that we produce results through priority measures.

Quality Policy
Basic Policy“Illuminating a more affluent tomorrow”“For customer peace of mind and satisfaction”
We value our attitude of embracing the challenge of continuing to meet the
expectations of customers and society and our spirit of craftsmanship (Monozukuri) to
supply high-quality products and services, help our customers to solve issues, focus on
activities to eliminate defects, and ensure that we produce results through priority
measures.
Plan and Targets

Under Medium-term Management Plan 2024, we will promote initiatives to improve quality with
the quantitative target of reducing the number of defects and the cost of rectifying defects byhalf in comparison with 2020 results over four years, and contribute to increased profits byincreasing customer satisfaction and reducing unnecessary costs.
Organization

Quality Assurance System

Under the direction of the President, who is our chief executive officer, and the Executive
Committee, the head of the Quality Control Management Unit (Executive Officer, Hiroshi
Takahata) oversees quality management for the whole Meiden Group. The quality assurance(QA) promotion system comprises the General Manager of the Quality Control Management
Division, and members including the quality assurance managers of each business unit. We
engage in activities such as sharing quality information and roll-out of policies to other business
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Meiden Group CSR

units at Company-Wide QA Promotion Committee and each business unit’s QA Promotion
Committee, etc.
Quality Assurance System

Quality Assurance Activities and Quality Risk Management

The Meiden Group conducts initiatives in each business unit for quality assurance and quality
improvement according to the President’s Quality Management Policy. We comply with relevantlaws, we have created quality management systems based on ISO9001 not only for production
divisions, but for each business unit including sales divisions, technical divisions and for eachGroup company, with a focus on manufacturing companies, and we are implementing quality
assurance measures.
In order to maintain and improve said systems, we conduct ISO9001 internal auditor education
for all Group companies in order to improve the skills of internal auditors.
Furthermore, if there is a quality issue that is likely to have a severe effect on society, such as a
blackout, a stoppage of water supply, or a recall, we handle the matter in accordance withstringent rules to ensure swift and appropriate action through reporting to management andsharing information with specialist divisions, relevant divisions, and relevant business units, etc.
Response Flow for Quality Issues

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Meiden Group CSRISO 9001 Acquisition Record (as of FY2021)
Eligible sites Certified sites Rate of acquisition
Meiden Group (Japan)
22
21
95.5%
Meiden Group (International)
12
10
83.3%
Whole Meiden Group
34
31
91.2%

Quality Activity Cycle

Each fiscal year, each business unit drafts a priority quality policy for their own business unit,
promotes activities such as CS activities and defect elimination activities based on the
President’s Quality Management Policy and the directions of the top management, etc., with theaim of increasing customer satisfaction.
Quality Activity Cycle

Initiatives

Improving Quality Management

Examining Tasks from the Perspectives of “No Defecting Unit Accepted,” “No
Defective Unit Made Here,” and “No Defective Unit Shall Leave Here” to Achieve
Exhaustive Quality Management
The Meiden Group has determined items that need to be managed from the perspectives of“no defective unit accepted,” “no defective unit made here,” and “no defective unit shall leave
here,” in order to improve quality, and we conduct activities accordingly.
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(1) Reducing defects in outsourced and purchased products
Check and provide instruction regarding suppliers’ process control and shipping inspection,and review the content of Meidensha’s receiving inspections(2) Reducing defects from insufficient consideration and inattention
Reducing defects from insufficient consideration: Prevent faults by focusing on changes
through design FMEA and process FMEA
Reducing defects from inattention: Review QR maps, procedures, and standards, analyze
background factors, and implement response measures(3) Reducing internal defects
Analyze and respond to defects in processes (internal defects) and leverage this to reduce
external defects(4) Preventing outflow of defects
Clearly outline tests that ought to be conducted internally and on-site, and make sure they arethoroughly conducted

In particular, under Medium-term Management Plan 2024, we analyzed the results of Mediumterm Management Plan 2020, and identified Meidensha’s weaknesses. We are overcoming ourweaknesses and promoting improvement of quality management by conducting the following
activities at all companies.

Improvement at the Supplier Management Level

The quality of outsourced and purchased products varies widely according to the technologicallevel of suppliers. We believe it is important to understand the technological level of suppliers
and to provide instruction for improvement. To that end, we conduct quality audits andinstruction of suppliers, which leads to a reduction in defects of outsourced and purchased
products.

Reform of Receiving Inspection Items

In addition to improvement at the supplier management level, we conduct inspections of
outsourced and purchased products in the course of receiving inspections, and prevent flow of
defective products into internal processes. We promote optimization of inspections bycomparing receiving inspection items of each business unit for each type of product andconducting an overall evaluation.
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Meiden Group CSR

Identification of 3H* Risks and Response Measures

Using design FMEA, we conduct DR that clarify new points, changes, usage conditions, etc. For
mass produced products, we prevent process faults by focusing on changes in the process
FMEA, which leads to a reduction in defects. A risk map is used to assess the level of risk andcreate a mechanism for efficiently identifying risks by clearly stipulating the level of DR. *3H:
Hajimete “first time,” Henkou “change,” Hisashiburi “first case in a long time”)

Improved Quality of DR (design review)

We clearly stipulate DR levels by determining the level of risk using the risk map. With regard to
DR that is deemed to be important, we operate a “key person system” that requires
participation in DR wherein experts in each product field are nominated each time DR isconducted. Through DR by experts, we create an environment where extensive content is
considered and risks can be identified, which results in high-quality DR. In order to facilitate
nominating and requesting the participation of experts in DR throughout the organization, a listof registered key person is made available throughout the company.. Furthermore, we havecreated and we implement and strictly manage a system of notifying managers andadministrators of remaining items so that processes do not proceed without resolving mattersthat have been identified and matters that require consideration, etc., through DR by thedeadline that has been set, in order to reduce the risk of defects arising from unresolved
matters.

Applying Lessons from Past Defects

We have created and operate a system to convert information about defects that have arisen
into easily applicable knowledge and to facilitate the accumulation and application of thisknowledge. We then apply this knowledge to subsequent development and design to ensurethat similar defects do not arise in the future.

Establishing and Complying with Standards and Procedures

We manage management items and methods in each process through a Quality Control
Process Chart (QC Process Chart) that we call the QR Map. By applying this QR map, we areable to ensure that all tasks are completed and that everyone completes tasks at the samelevel, which enables us to reduce the risk of defects arising due to the variations among
personnel. This QR map is linked to standards and procedures to promote tasks in eachprocess. We limit recurrence of past defects and occurrence of similar defects by conducting
an overall examination and revision of these standards and procedures to ensure that theircontent relates to prevention of recurrence of defects or occurrence of similar defects.
Furthermore, we encourage filling in the Quality Control Process Chart (QC Process Chart) sothat the implementation status can be confirmed by third parties.

Preventing Outflow of Defects

We must not allow any defects to leave the Company. In order to achieve this, it is important to
conduct thorough testing. There are many products for which it is not possible to conduct all120

Meiden Group CSR

tests in-house. Therefore, we clearly differentiate tests that should be conducted in-house andtests that should be conducted on-site, and make sure we conduct them accordingly.

Analysis Technology to Prevent Defects for Parts and Materials

At the Materials & Semiconductor Device Analysis Center, we promote activities to improve
product quality and prevent defects through analysis and reliability evaluation ofsemiconductor devices and materials that are used in our products, adopting “improving
product quality,” “creating new products,” and “consideration for the environment” as our basic
policies.
If new parts and components such as semiconductor devices are used, they do not only
undergo evaluation of variation in electrical characteristics and failure analysis, but (1) they
undergo non-destructive inspection, (2) they are removed from packaging and further
examined, and (3) the internal structure is examined by taking cross-sections etc., to evaluate
whether they comply with internal standards. We also actively work to achieve long-term
reliability and have a system of checking the potential effects of a range of stresses such asheat, humidity, and corrosive gasses.
Also, we acquired laboratory accreditation (ISO/IEC 17025) for RoHS restricted substances in
response to the tendency to revise RoHS directives for environmental regulations, in order toprovide products for customers to use.

X ray transmission observation ofelectronic components

Evaluation of electrical characteristics ofsemiconductor devices (power device
analyzer)

Coexistence of Limit State Design and Product Quality

At the Analysis Center, we conduct research and development relating to improving the
precision of vibration analysis and obtaining more material strength data in order to achieveboth product competitiveness and product quality through limit state design. If productcomponents are made as small and light as possible, strength can be an issue where it was notin the past. We are therefore improving the precision of vibration analysis by conducting
vibration analysis and testing of each component and whole product. We have also introduced
high-speed fatigue testing equipment to obtain more complete strength data for materials suchas copper, which is used in heavy electrical products.
121

Meiden Group CSRFor example, when conducting vibration resistant design for the switchboard of electricalequipment, we achieve reliable products by conducting vibration resistance analysis simulations
from the initial design stage, and conducting detailed evaluations of actual machine equivalentmodels once design is complete. Furthermore, we conduct evaluation of product life bycomparing results of vibration analysis of rotating machinery and materials strength data.

Structure analysis of switchboard

Ultra-high cycle fatigue testing of copper

Activities to Prevent Defects in Mass-produced Products·For mass-produced EV products, we are working to thoroughly manage quality in the following
ways.
(1) Manufacturing automation: Improve automation and eliminate human error(2) Image analysis: Detect missing goods, detect position of screw holes and cables, manage
fastening positions, etc.
(3) Temperature management: Manage shrink-fitting conditions and manage adhesive setting
conditions, etc.
(4) Centralized process data management: Link with a traceability database

Expansion of Remote Product Inspection Before Shipping

Due to the impact of the COVID-19 pandemic, it has become difficult to conduct pre-shipping
product inspections by customers visiting our factories, as before, so we started remote preshipping inspections. At these remote pre-shipping inspections, by connecting the inspection
factory via PC screen, customers at a remote location can check the status of the inspection
by viewing three screens: an image of the entire inspection site, an image of the inspector's
hands taken up, and an image of the inspection certificate. Customers can talk to on-site
inspectors through an internet meeting system using a microphone and a camera.
In addition, we established the Meiden Standard System to conduct remote pre-shipment
inspections and rolled out ideas and initiatives to meet the new needs of customers, such as byautomatically inputting inspection results in the inspection certificate in real time, bytransmitting measurement data from measurement devices such as products’ external
dimensions and coating thickness, etc. Going forward, we will continue to promote expansion of
products and factories, while achieving overall improvement by managing and rectifying issues
and carrying out remote pre-shipment inspections.
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Meiden Group CSR

Development and Introduction of Image Inspection Equipment for Surface
Coating

We have developed and introduced surface coating image inspection equipment toquantitatively investigate the quality of coated surfaces. We are able to prevent variation inquality checks by replacing external visual inspection of metal sheets used for switchboards,
etc., with image analysis that quantifies color irregularities and roughness. For the inspection,
the inspector takes a photograph of the coated surface of the metal sheet using a microscopethat incorporates a CCD camera and an LED light. We are able to check the accuracy of thedata by loading the photograph data into a PC, quantitatively measuring the exterior of thecoated surface, and acquiring the image data in real time. In the past, half of the items thatwere deemed to be defective by pre-shipping inspection using switchboards and control panels
only had a defective surface coating, and were able to be shipped after recoating or polishing.
By introducing this equipment, we are able to reduce the cost of recoating and polishing
because of defective surface coating by reducing the number of defects due to quality ofcoating to zero. Going forward, we aim to review conditions such as the amount of coating andtime spent polishing and washing, optimize coating processes, reduce cost, and shorten time,using coating accumulated evaluation data.

Surface coating image inspection
equipment
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Meiden Group CSR

Quality Reform Activities for Overseas Subsidiaries

For overseas subsidiaries, we have introduced a mother factory system in which the domestic
production plant is in charge of starting up production and providing training guidance foroverseas subsidiaries. We provide support and guidance for overseas subsidiaries through themother factory, which excels in technology, development capabilities, quality control, etc., and isfully equipped with comprehensive management capabilities for plant operations. We work toincrease the competitiveness of overseas subsidiaries and promote further globalization by
actively providing support such as dispatching engineers and managers from Meidensha andproviding the required technology.
Initiatives

Promoting Initiatives to Collect Customers’ Needs

In order to provide products and services that satisfy our customers, we are gathering andanalyzing the needs of our customers on a daily basis, including information and requests
provided by customers, complaints, and market trends, and implementing activities that lead toconcrete actions such as proposing solutions, developing new products, and engaging inservicing and various improvement activities.
Furthermore, at factories in Japan, we ask customers who have visited our facilities throughfactory observations or pre-shipping inspections, etc. to fill in a customer satisfaction survey.
The in-person opinions of our customers are shared with relevant divisions to provide
information on customer needs, leading to rapid development of new products, specificproposals, and work process improvements, etc.

124

Meiden Group CSRFlow of Initiatives for Finding Customer Needs

24 Hour Support for Customers’ Facilities

In order to respond to urgent trouble or product enquiries in a timely fashion, the Customer
Center has staff ready to provide support to customers 24 hours a day. We also use theCenter to provide remote monitoring services for substation equipment and wind power
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Meiden Group CSR

generation equipment, etc. We contribute to the optimal operation of our customers’
equipment.

ISMS certification(ISMS: Information Security Management
System)24 hour Customer Center
Initiatives

Developing Human Resources to Support the Supply of Highquality Products
Education Relating to Quality Management Technology

In order to increase all employees’ awareness of quality and impart basic knowledge of quality
management, we conduct education relating to quality management technology for all
employees that are involved with manufacturing, even if they are not directly connected to the
Production Business Unit. We conduct training that includes drills relating to the role of quality
management, how to promote improvement (Kaizen), seven tools for quality control, analysis
based on the five whys, and supplier engagement education, etc., for each level of employee
such as new employees and group leaders. We are in the process of rolling out the curriculum
for Japanese and overseas subsidiaries.

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Meiden Group CSR

Training scene

Technical Skills Maintenance Training for Safety and Security

At the technology center adjacent to Numazu Works, we conduct training programs forworkmanship and technical skills maintenance engineers. We raise engineers who contribute to
the stable, safe, and efficient operation of customers’ equipment through practical training
using real equipment.
Instructors are veteran engineers with extensive real-world experience and the curriculum isformulated to allow participants to touch and experience actual equipment, such as extra highvoltage and high-voltage receiving substation equipment, computers, power converter
equipment, generators, and rotating machinery. Maintenance training is conducted each year
for customers to whom Meidensha’s products have been supplied. Participants deepen theirunderstanding of the internal composition of machinery through cross-sectional models of
products, and gain experience of actually operating disconnecting switches and circuit
breakers, testing protective relays, and using generating equipment and inverters, etc.
As one of our 120th anniversary projects, we have granted internships to two Thai university
students each year since fiscal 2017, and we have conducted technical education for these two
university students in fiscal 2019 as before.
At Manabi-ya, which is the new technical training center established at Numazu Works in
October 2020, we have constructed an educational system utilizing AR(augmented reality), andare using the latest ICT technologies, such as the experience of maintenance at virtual full-scale
facilities, the visualization of invisible power distribution ranges, and the reference of veteranworkers' working know-how to smoothly pass on technologies in the maintenance and service
fields, where actual on-site experience is required, as well as to quickly development young
workers and improve technical capabilities.

Thai university student internships(product observation)

Technical training (creating sequencing
circuits for rotating machinery)

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Meiden Group CSR

Transmission of Skills Using Eye Tracking

We introduced the line-of-sight analysis tools called “Eye Tracking” and began an initiative to
visualize the hand and eye movements of skilled worker who has “good intuition” and “knacks”
for the purpose of transferring the skills and knowhow of skilled worker to the next generation.
The line-of-sight analysis tools, Eye Tracking is glasses with built-in small cameras. When worker
wears this glasses, the central camera records the field of view and captures the movement of
the hand. By having skilled worker wear these glasses, it is possible to visualize fine hand andeye movements that were previously in tacit knowledge domain.

The line-of-sight analysis by Eye Tracking

128

Meiden Group CSRResults Data

Number of Legal Violations Relating to Quality (as of FY2021)
FY2019FY2020
Meiden Group00(consolidated)
Quality Management Education and Training Results FY2021 Results
Times conductedParticipantsGroup leader training
1
17

ISO 9001 Internal
Auditor Development
Course5139

Quality defectprevention training (elearning)

2

5,443

129

FY20210OutlineTraining to develop
quality management
and workplacereform techniquerequired of groupleaders
Training to develop
the knowledge
required of internal
auditors forcontinuous
improvement of theISO 9001 quality
management system
Education activities
to prevent quality
defects

Meiden Group CSRHome Sustainability

SocialSupply Chain Management

SocialSupply Chain Management
PolicyThe Meiden Group promotes sustainable procurement in conjunction with business partners, inorder to contribute to the realization of a sustainable society.
Whilst the Corporate Code of Conduct is based on our Corporate Philosophy, we ask all of ourbusiness partners(suppliers) to conduct activities in accordance with our Basic Procurement
Policy for CSR items that cover all of our business endeavors.
The Meiden Group Basic Procurement Policy
All of our procurement activities are based on the Meiden Group Corporate Code of Conduct.
Actively Promoting Responsible Corporate Conduct(1) Embody our procurement principles along with our suppliers, and build a sustainablesupply chain(2) Promote environmentally considerate procurement activities, and contribute to global
environmental conservation along with our suppliers(3) Eliminate use of conflict minerals, which are a source of funds for armed groups that
repeatedly engage in inhumane acts such as slavery, forced labor, child labor, andabuse.
Plan and Targets

The Meiden Group promotes enhanced supply chain management based on the basic policy of“Medium-term Management Plan 2024.”
We are working to conduct fair and impartial transactions, and to improve sustainability further
while strengthening partnerships to help business partners understand the importance ofpromoting sustainability in the supply chain. Furthermore, we hope to promote legal
compliance, environmental conservation, and community contribution activities, etc., with ourbusiness partners, with the aim of achieving mutual sustainable development.
We are continuing activities to support the acquisition of environmental management systems(EMS) certification by our business partners and enhancing sustainability promotion by building
partnerships such as through follow-up education after EMS certification has been acquired,information security measures, and support for health and safety measures.

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Meiden Group CSR

Initiatives

Promotion of Sustainability that Involves the Entire Supply Chain
Co-creation with Sustainability Partners

We defined the term “sustainability partner” to specifically articulate the Meiden Group’s ideal
form. A sustainability partner fulfils the role of achieving the Meiden Group’s goals of creating
personal happiness and a sustainable global environment. Fulfilling the role of a sustainability
partner through business activities will lead to the realization of our ideal society.
When procuring materials, we issue the Meiden Group Sustainable Procurement Guidelines tosuppliers who are sustainability partners, in accordance with recent international societal
demands. In order for them to understand our approach to supply chain management, we have
distributed it to approximately 1,600 of our domestic suppliers.
The Meiden Group Sustainable Procurement Guidelines were drafted with reference to theJapan Electronics and Information Technology Industries Association (JEITA)’s Responsible
Business Conduct Guidelines (March 2020 edition).

Dissemination and Explanation of the Procurement Policy to Business Partners

We supply the Meiden Group Sustainable Procurement Guidelines at the start of dealings, andrequest that all new Business Partners (100%) disseminate it and apply it at the time of the firsttransaction.
We directly request for our Business Partners to comply with both the Meiden Group Basic
Procurement Policy and the Meiden Group Sustainable Procurement Guidelines at the
production plan explanatory meetings held at each of our production site.

The Meiden Group Sustainable Procurement Guidelines

Response to the Conflict Minerals Issue

Meidensha has devised the Meiden Group Policy on Conflict Minerals Issue, and we added asection entitled “responding to the conflict minerals issue” to the Meiden Group Supply Chain
CSR Promotion Guidebook and clearly articulated our stance on the matter in January 2014.
* In fiscal 2022, this was revised and renamed as the Meiden Group Sustainable Procurement
Guidelines.
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Meiden Group CSR

Policy on Conflict Minerals Issue

In order to fulfill its corporate social responsibility through procurement activities, the Meiden
Group promotes initiatives to prevent the use of conflict minerals (tantalum, tin, gold, andtungsten) mined in the Democratic Republic of the Congo and surrounding nations, which areused to fund armed group activities that repeatedly engage in human trafficking, forced labor,child labor, abuse, etc., or inhumane acts, etc.
We conduct surveys of high-risk minerals as a due diligence measure, using the Conflict
Minerals Reporting Template (CMRT) developed by the Responsible Minerals Initiative (RMI).
In fiscal 2021*, we conducted a survey of materials that we had purchased from 380 major
suppliers in the previous year and received acceptable responses from 360 companies (94%).
If the surveys reveal that minerals have been used to support conflicts, we ask our business
partners to take corrective action to avoid using the relevant minerals, such as by changing
suppliers. Furthermore, if customers identify risky refineries, we ask business partners that use
these refineries to re-examine the status of their business dealings.
At present, we have not confirmed any relationships between our business partners and armed
groups, and we are conducting measures aimed at identifying refinery operators and ensuring
supply chain transparency.
* In fiscal 2021, we conducted surveys using the Cobalt Reporting Template (CRT).
Request to business partners
The Meiden Group considers ensuring a transparent supply chain and conducting
responsible procurement of materials and parts to be important matters. We request that
all of our business partners accept our Policy on Conflict Minerals Issue and cooperatewith our initiatives to source conflict-free minerals.

Promotion of Green Procurement

Based on our corporate philosophy of “contribute to people, society, and the global
environment to make a world a better place to live,” we are proceeding with environmental
activities in accordance with the Meiden Group’s Environmental Action Policies. In material
procurement, throughout the entire life-cycle to disposal, we try to make environmentallyconscious products and reduce disposal, and engage activities in protecting the global
environment by energy-saving, resource-saving, and minimizing the use of toxic chemicals, etc.
We view procurement of materials as part of our supply chain sustainability activities. We
drafted the Green Procurement Guidelines to clarify our policies and request even greater
understanding and cooperation from our business partners. We provide the Green
Procurement Guidelines to domestic business partners and we request all new business
partners (100%) to disseminate and apply at the time of the first transaction.
Furthermore, by issuing sustainability surveys (environmental activities surveys), we are able tounderstand our business partners’ CSR promotion activities and environmental activities,
conduct risk assessment, and receive assistance with our sustainable procurement activities,
including green procurement.
In fiscal 2021, we revised our Green Procurement Guidelines in light of the needs of the times.
We engage with a broad range of environmental issues that need to be considered bycompanies such as promotion of reducing greenhouse gasses and efficient use of water132

Meiden Group CSR

resources and consideration for biodiversity. We work with business partners to promoteclimate change countermeasures.
We ask our business partners to understand the importance of global environmental
conservation activities and to cooperate our activities. Please refer to the Green Procurement
Guidelines (revised July 2021) for details.

Risk Evaluation

Evaluation of Suppliers

We convey the importance of sustainability and our philosophy to our business partners,
including legal compliance, environmental protection, and community contribution, which are
the basic policies of the Meiden Group. In addition to quality, delivery date, price, technologicaldevelopment proficiency, and environmental certification, etc., we evaluate our business
partners’ social responsibility for the risks of environment and social issues such as humanrights and labor, fair trade principles, social contribution, environmental conservation, andmanagement of chemical substances.
Through this evaluation, we work to gain an understanding of business conditions relating tosocial issues such as climate change, biodiversity, environmental management, human rights,
and working environments, and then to identify suppliers which have a high-risk.
We conduct appropriate, fair, and impartial procedures for all business partners throughsurveys relating to sustainability promotion and environmental conservation activities at thetime of the first transaction.
（FY2021 survey record: 1,430 companies） Furthermore, we evaluate suppliers through “ourbusiness partners’ evaluation system” and issue a score card each year based on the results.
(500 companies evaluated in fiscal 2021)

Survey relating to sustainability activities Materials procurement score cardand environmental conservation activities (example)

133

Meiden Group CSR

Initiatives

Building a Sustainable Supply Chain
Environmental Management Initiatives

When promoting environmentally conscious design, which forms part of our environmental
management activities, we operate an environmental BOM* management system that iscompliant with the regulations governing chemical substances in products.
In the Green Procurement Guidelines, the Meiden Group has stipulated two risk levels(prohibition and reduction) for hazardous substances regulated by laws and regulations relating
to chemical substances such as the RoHS directive and REACH regulations. Based on this, we
conduct surveys of chemical substances contained in procured materials and expand
environmentally conscious products by promoting the elimination of hazardous substances.
* BOM: Bill of Materials

Reducing Environmental Impact by Building Environmental Management
Systems for Business Partners

We provide assistance not only for the Meiden Group but also for business partners, to build
environmental management systems (EMS) and promote the reduction of environmental
impact. We ask our partners to participate in these activities too, and promote the reduction ofenvironmental impact throughout the entire supply chain.
We ask our business partners to create environmental management systems. In particular, we
strongly recommend acquiring external EMS certification such as ISO14001 and EcoAction 21.

Promoting and Supporting EcoAction 21 Certification and Registration for
SMEs

The Meiden Group is providing support for the environmental management system EcoAction
21 certification promoted by the Ministry of the Environment, and registration activities of ourbusiness partners, and aim to spread environmental management systems and environmental
improvements throughout the entire value chain.
Fiscal 2021 was the seventh year we have been doing this, and in addition to acquiringcertification through individual guidance, a total of 132 business partners have received
EcoAction 21 certification.
We postponed the following as a result of restraints on activities due to COVID-19 prevention
and the state of emergency declaration.
EcoAction21 study group (greening program) held for business partners
Conducting follow-up education and individual visits for the 90 companies that had received
certification up to 2018, and provision of opportunities for exchange of opinions and sharing
of information that include educators
We will continue providing support for our business partners in relation to EcoAction 21
certification and registration activities, and aim to spread environmental management systems
and environmental improvements throughout the entire value chain.
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Meiden Group CSR

Certification ceremony in Numazu

Follow-up education in Numazu

Communication with Business Partners

The Meiden Group is conducting the following activities to build relationships with business
partners.
We are directly confirming the challenges and requirements of our partners and pursuing
support activities.

1. Gathering Real Feedback

Business Partners are regularly visited by officers of Meidensha, the head of the Procurement
Group, and production engineering staff, who gather information such as issues andrequirements, which leads to improved functionality, quality, and productivity.

2. Seeking Procured Items on the Website

The Meidensha website has introduced “instructions for initial transactions” and “transaction
application form” on material procurement, and we collect information on a broad range ofbusiness partners.

3. Using the Supplier Portal (web)We regularly post information about subsidies (grants, etc.) for SMEs on our supplier portal(web), and supply information so that opportunities to update equipment, etc., are not missed.
We also contribute to the business efficiency of our business partners by creating efficiency inoperations from submission of quotations to ordering, ATP, and delivery, using paperlesselectronic information, conducting conflict minerals surveys using a questionnaire, andconfirmation of BCP implementation and damage caused by earthquakes and typhoons, etc.

4. Establishment of the Public Whistleblower System

Meidensha has established the Public Whistleblower System: contact person is an outside
lawyer (Law Office Hironaka), for the officers and employees of our business partners, in orderto promote appropriate dealings. We request our business partners to report or consult withthis contact point when they discover any violation of laws and regulations, inappropriate
behavior, or potential violation of laws and regulations by our employees in relation to business
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Meiden Group CSR

transactions.
Details on the management of information, protection of reporter confidentiality, response toreports, etc., can be found on the Procurement Group webpage. (Only in Japanese).
Initiatives

Increasing Business Partners Engagement

We aim to build sustainable relationships with our business partners as business partners, andwork to increase engagement with business partners with the basic philosophy of collaborationand co-creation. We believe that it is important to appropriately understand and respond to
demands and expectations of the Group.

Hosting of Meidensha Partners Meeting

We have held Meidensha Partners Meetings since fiscal 2019 in order to enhance two-way
communication with business partners and strengthen relationships. The President gives
messages to business partners concerning future Meidensha policies, and awards to praise theassistance and contribution towards business activities and production activities. He
appreciates them face-to-face, and rewards exceptional activities and results. Since fiscal 2019,
the President has been visiting the award-winning business partners to present the awards inlight of the COVID-19 pandemic.

President’s message

Visit to business partners
and award presentation(FY2020)

Visit to business partners
and award presentation(FY2021)

Holding Production Plan Explanatory Meetings for Suppliers

Each year, we invite our major business partners to each production site in order to directly
share information, inform, exchange opinions, and communicate with our business partners.
Explanation of the Meiden Group’s procurement policy (purchase record and plan)
The record and plan of the business status of Meidensha and each business unit
Announcement of examples of notable improvement and sharing information to increasetechnical ability from business partners
Explanation of the Meiden Group’s environmental policy and green procurement policy, andrequest for cooperation from business partners
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Meiden Group CSR

Holding Various Seminars, etc.

We hold seminars on process improvement and information security measures at our suppliers'
manufacturing sites as needed to improve their capabilities. In fiscal 2020, we held productexchange meetings, where we communicated and exchanged opinions with workers on site. In
collaboration with the Corporate IT Systems Group, we conducted on-site checks to ensure if
appropriate information security measures were being taken to prevent information leaks andprovided advice. Also, in terms of health and safety, we have commenced the workplace checksof our business partners using the Health and Safety Support Project in collaboration with the
Occupational Health and Safety (OHS) Management Division. There are limitations within the
COVID-19 pandemic; however, we are promoting ongoing support to the extent possible.
In fiscal 2021, we have decided not to conduct some face-to-face activities in order to preventthe spread of COVID-19.

Product exchange meeting Information security
instruction
Record of Seminars Held (FY2021)
Theme
Number of
seminars held

Number ofparticipants

2 seminars

Number ofparticipatingcompanies
First half: 87
companies
Second half: 83
companies
4 companies

33 seminars

33 companies

Approx. 250
participants

Production plan
6 seminars held
explanatory meetings twice yearly in 3
(Ota, Numazu, Nagoya) locations
Hands-on safety
experience truck
education
Safety support
diagnostics andeducation

Project to Support Safety& Health

137

First half: 111
participants
Second half: 103
participants
13 participants

Meiden Group CSR

Record of Monitoring Suppliers (FY2021)
Theme
Content

Environment
Health and safety
Information security
BCP implementation

Times conducted(number ofcompanies)
Environmental audits 10 companies
Checking suppliers’sites using thehealth and safety
support businessSubmission of selfdiagnoses using theinformation security
self-diagnosis card
Investigation of
impacts of natural
disasters, major
accidents, andmisconduct, etc.

OutlineParticipation in
FY2022 EA21 (EMS)
by 2 companies that
required correction
15 companies
Numazu area: 8companies
Ota area: 7companies
2,154 companies Site evaluations to
be conducted in
FY2022 based on
diagnosis results
5 times (the number Earthquake off theof companies
coast of Fukushima,
investigate depends localized downpours,on the scope of the etc.
investigation)

Enhancing Group Procurement Systems (education of
procurement managers)

Thoroughness of Absolute Compliance and Prohibited Matters of the
Procurement Headquarters

In order for the member of Procurement Group to behave in a proper manner, we have devised“absolute compliance matters” and “absolute prohibitions” as a code of conduct for theProcurement Headquarters so that all employees reflect on their own actions and do notcommit any inappropriate conduct.
We read the following items at every morning meeting and ensure that all employees know
them as a daily education; legal compliance, prevention of corruption, respect for human rights,
labor practices, consideration for the environment, quality, safety, and information security, etc.

Enhancing Group Procurement Systems

The whole Meiden Group is working to enhance procurement systems. We conduct regular
Meiden Group Procurement Meetings, and promote initiatives to improve our procurementbase and sharing of information.

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Meiden Group CSR

Initiatives to Improve Our Procurement BaseBe thorough with legal complianceBe thorough with sustainable procurement
Enhance risk management (BCP and internal control)
Enhance professional development

Education and Professional Development for Procurement Managers (as of FY2021)
Certified Procurement Professional qualification Attainment: 77%
system
Eco Test
Attainment: 71%
Education for new staff and reassigned personnel, 100% attendance
etc. (FY2021)

139

Meiden Group CSRHome Sustainability

SocialHuman Rights

SocialHuman Rights
PolicyThe Meiden Group Human Rights Policy

Since it was founded, the Meiden Group has created and supplied a variety of technologies,
products, and services, with a focus on electrical equipment that supports social infrastructure,and contributed to the sustainable development of society.
Respect for human rights is the foundation of our business activities to realize our corporate
philosophies of “illuminating a more affluent tomorrow” and “for customer peace of mind andsatisfaction.” Through its business activities, the Meiden Group will create a joyful andsustainable society for everyone, and comply with international human rights norms as
indicated by the Meiden Group Corporate Code of Conduct.
We will also identify, prevent, and mitigate risks and impacts relating to human rights
throughout our activities, including in the supply chain, and endeavor to disclose our responses
on an ongoing basis.
The Meiden Group Human Rights Policy (347KB) PDF

Relief and Remedy

Establishment of a Compliance Hotline

If a human rights violation occurs due to Meidensha’s businesses, employees are able to reportto the Compliance Hotline, the Harassment Consultation Hotline, and the external Public
Whistleblower System.
All stakeholders (including individuals, local residents, etc.) can make inquiries from outside thecompany using our external helpline. The Compliance Committee investigates information thatis brought to the above points of contact, and, having confirmed the content, consults lawyers
before resolving issues if necessary.
Furthermore, our system effectively manages information concerning whistleblowers’ names,
etc., protects whistleblowers, and enables anonymous consultation, in accordance with nationalguidelines. We work to ensure that whistleblowers experience no disadvantage and improve thedependability of our whistleblower system.
Compliance Whistleblower System

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Meiden Group CSR

Initiatives

Promotion of Respect for Human Rights

Human Rights Education for Officers and Employees

The entire Meiden Group understands international norms (Universal Declaration of Human
Rights and International Bill of Human Rights) and is working to conduct education activities
focused on human rights with the aim of ensuring “respect for human rights,” which is listed in
the Corporate Code of Conduct. We also comply with all relevant laws concerning theprohibition of forced labor and abolition of child labor. We are conducting various types oftraining as educational activities to achieve respect for fundamental human rights.
We conduct periodic group training and visual education, relating to compliance andharassment for all Group employees and improve understanding and awareness by providing
opportunities for individuals to reexamine their workplace and views. We have also expanded
anger management training for managers to include all employees. Through the training, weraise awareness to respect the personalities and ideas of others.
To strengthen our efforts in mental health, we conduct self-care training in each region foreach year of joining the company and each age bracket, as well as line-care training for
managers and supervisors.
In fiscal 2022, we invited external instructors to conduct training concerning “business andhuman rights” required by companies for all officers of executive officer level or above andpresidents of Japanese subsidiaries.
Content of Human Rights Training (FY2021)

Training type
Workplace discussions
relating to human rights
Harassment education
Compliance manager
training
Anger management
training
Mental health training

Targets
All Group
employees
All Group
employees
Compliancemanagers
All Group
employees
Conducted ineach region

Human rights themes dealt with
Link between business and human rights
Prevention of various types of harassment

Responses to consultations regardingharassment, etc.
Understanding and controlling anger, which
can lead to harassment
Correct understanding and prevention ofmental illness, and prohibition of
discrimination
Regarding harassment, we have established an internal consultation system to respondpromptly while adhering to the principles of protecting the privacy and confidentiality of theuser. The system is available to Meiden Group employees as well as dispatch workers and141

Meiden Group CSRcontractors. Information obtained through the system is used to conduct surveys of the user
and relevant parties, provide feedback after having understood the situation, and prevent
recurrence. The system provides an opportunity to implement recurrence prevention measuresand conduct individual education.
We have also included items concerning harassment in our employee awareness survey, whichallows us to observe trends each year.

Harassment prevention system

Interaction with employee representatives

We value conversations between employee representatives and management to ensure that
employees can engage in meaningful work. We have established a regular central labormanagement conference and regional labor-management conferences, and we are working to
improve the workplace environment according to the circumstances of each site.

Support for a living wage

We provide a family allowance to support the lifestyles of employees who satisfy certain
conditions such as carrying spouses and children to provide for. The Meiden Group Mutual Aid
Association also provides various types of condolence, sympathy, and celebratory monetaryfunds, as well as loans for financial assistance required for the mutual support and welfare ofmembers. In addition, we have a home loan program to receive funding from financial
institutions when those who have saved property accumulation residence fund eventually makea purchase.

142

Meiden Group CSRHome Sustainability

SocialLabor Practices

SocialLabor Practices
PolicyBasic HR Management Philosophy

As issues facing our customers and society as a whole become increasingly complicated andunclear, it is important to have personnel with the abilities to think flexibly and act courageously,
creating the value necessary to solve these issues in order to enhance corporate
competitiveness. For this reason, we are determined to achieve sustainable growth by focusing
on employing and developing competent personnel and creating an environment where each
person can derive pride and fulfillment from their work.
In order for the employees to maximize their abilities, it is important to promote diversity
management and create a workplace in which a diverse range of employees can participate
with a healthy mind and body. Specifically, by engaging as a group in initiatives such as
achieving a work-life balance, and improving occupational health and safety, we will enhance thecorporate value for the entire group.

Labor Practices Policy
Employment Policy

We are creating an employment framework that enables a diverse range of employees tomaximize their potential, irrespective of attributes such as age, gender, nationality, religion,
sexual orientation, or disability. We are focusing on diversity education at all levels, rethinking
human resource management systems and evaluation systems that can shape careers, andcreating an environment where each person’s individuality can be expressed.
Policy and Initiatives

Ensuring Fair and Impartial Evaluation and Treatment

Ensuring Fair and Impartial Evaluation and Treatment Meidensha conducts evaluation of results
and roles as part of an HR treatment system that places weight on the results of both
executives and regular employees in order to reform and enhance corporate character, with the
key word of professional development. Therefore, we have introduced management by
objectives to ensure that results are reflected in impartial treatment of employees. We holddiscussions to mutually confirm objectives and results indicators, etc., between superiors andsubordinates through objective-setting interviews and objective management results interviews
to ensure that there is no discrepancy in expected results.
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Meiden Group CSR

Furthermore, we disclose our evaluation standards through the Company’s intranet and the
explanatory leaflet issued by the trade union, we periodically hold evaluation feedback
interviews for all employees that are subject to evaluation, and we focus on developing andfostering the abilities of individuals. In order to ensure impartial evaluation and treatment of
employees, complete understanding of the evaluator concerning the HR system and preventionof errors during evaluation, as well as communication between superiors and subordinates are
essential, so we conduct evaluator training, which includes evaluation and interview exercises,
for new managers.

Promoting Diversity Management

Meidensha values diversity and we are promoting diversity and inclusion so that each employee
is able to maximize their abilities irrespective of gender (gender identity and sexual orientation),
nationality, age, etc.
Promoting diversity and inclusion will lead to mutual respect for each employee’s backgroundand values, increased capacity for co-creation, and innovation.
In FY2022, we newly established the Diversity Promotion Office to take over of the Professional
Development & Diversity Promotion Project launched in FY2021. We will further promote
diversity and inclusion such as by raising consciousness, flexible work styles, and more
complete education, leading to increased employee productivity and creativity, and fostering amore fulfilling workplace culture.

Promotion of Opportunities for and Participation by Female Personnel

Meidensha was evaluated for promoting women’s participation and advancement, and in
November 2017, for the first time in the heavy electric machinery industry, we earned the top
Stage 3 “Eruboshi” certification by the Minister of Health, Labour and Welfare.
In March 2021, we were granted Kurumin certification, as well as Platinum Kurumin, which is
granted to companies that conduct higher-level initiatives as companies that excel in providing
childcare support, by the Minister of Health, Labour and Welfare.
We continue to formulate action plans in line with the purpose of the Act on the Promotion of
Women’s Participation and Advancement in the Workplace, promote measures to encourage
the acquisition of childcare leave for men, and accelerate measures to actively recruit, train,
and promote female technical employees.

Eruboshi

Platinum Kurumin

144

Meiden Group CSR

Action Plan and System to Balance Work and Childcare Based on the Act on the
Promotion of Women’s Participation and Advancement in the Workplace■Increasing the proportion of female new graduates hired
Issues for the Company Enhanced hiring of female new graduates to foster the next
generation of managers
Targets
Proportion of female new graduates hired
Continuation of 50% of general administrative hires
Achievement of 20% of general technical hires
Content of initiatives
We will endeavor to provide more media contents and holdseminars for women, in order to enable women to form a clear
career plan at the Company.
Time of initiatives
April 1, 2022 to March 31, 2025
■Promoting utilization of childcare leave by employees
Issues for the Company Increased rate of utilization of childcare leave by male
employees
Targets
Achievement of childcare leave utilization rate of 100% by both
men and womenContent of initiatives
We will notify employees of systems and promote understandingof superiors in the workplace in order to increase the childcare
leave utilization rate.
Time of initiatives
April 1, 2022 to March 31, 2025

Work-Life Balance Support System

Up to 2 years of unpaid childcare leave (can be used even if the child is enrolled at achildcare center)
Paid maternity leave
System for shorter working hours during pregnancy
System to support early return to work after unpaid childcare leave (additional annual leave)
Payment of transportation costs to childcare center
System for shorter working hours during nursing care for as long as the care is required (4day work week is possible)
System for up to 730 days of unpaid nursing care leave
System for working from home or from a satellite office
Expanded system to take leave for infertility treatment and system of shorter work hours for
employees receiving infertility treatment
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Meiden Group CSR

Tie-up with company-operated childcare center
Expanded welfare service menu (support for unauthorized childcare center fees andexpanded nursing care services, etc.)
Short-term leave system to promote childcare leave for men (1 month paid)
Special leave to promote participation in childcare for men (spouse maternity leave)
Support for temporary childcare services (assistance with subsidies for day care center fees,
etc.)

FY2021 Initiatives

Unconscious Bias Seminar

In February 2022, we held a seminar presented by an outside lecturer on unconscious bias,
about which there were many opinions expressed in our employee survey on impediments todiversity, in order to realize the wellbeing that is the goal of the Meiden Group. On the day,there were approximately 200 participants, including general managers of business units,
factory superintendents, and presidents of Group companies. Participants learned about how
knowing about, noticing, and responding to unconscious bias results in organizations where
each individual is able to participate with enthusiasm.
We are conducting various seminars in order to create systems and foster environments thatare accepting of diverse personnel and allow them to participate.

Improved Work Environment at Plant Construction Sites by Female Employees

The Plant Construction & Engineering Business Group is promoting the creation ofenvironments where on-site female staff can work comfortably.
Women share their opinions on points where improvements are anticipated in their daily work,
and work to improve workplace environments.
＜Examples of Improvements＞
Female-only lockers have been installed, and lockers in changerooms have been changed
from the previous two-level type to a long type, so that long coats and dresses can be hungup.
Signs that indicate who is using changerooms at a glance have been created for sites where
office space is limited and it is not possible to separate male and female changerooms.
Safety was increased by making helmets easier to access by placing them at a lower height.
Placement of screens to reduce visibility has eliminated the need to worry about others whenentering and leaving restrooms. This also led to securing larger areas and creating cooler
environments away from direct sunlight.

146

Meiden Group CSRHelmets are placed in a lower location
than before.

A screen in front of a restroom

Introduction of Mandatory Retirement at Age of 65 and System to Extend
Employment to Age of 75

In April 2020, Meidensha raised the mandatory retirement age from 60 to 65 years of age forall employees. We have also raised the level of remuneration so that older employees can enjoy
about the same level of remuneration as when they were 60 years of age, depending on
performance, in order to facilitate more meaningful work for experienced senior employees.
In addition, we have established a dispatch company (MEIDEN MASTER PARTNERSCORPORATION) to promote flexible workstyles to senior employees. For employees who wish towork reduced days/hours, we have established a system that allows them to transfer to Meiden
Master Partners and work as temporary employees at our office. We hope to promote
successor development, improve quality, and enhance customer service by leveraging theknowledge and experience of senior employees more so than in the past.
In January 2017, we introduced an “Elder System” that allows employees to work from the ageof 65 to a maximum of 70, and in October 2020, we raised the maximum age to 75.
Under this system, employees can continue to work after the age of 65 if they meet certain
conditions, and veterans who have once retired can be rehired. Going forward, we will develop a
workplace environment where seniors can play an active role without worries.

Senior employment system

September 2001: Introduction of the extended employment system
April 2006: Introduction of the re-employment system
April 2013: Revision of the re-employment system (extended to all employees who apply)
January 2017: Introduction of the elder system
April 2020: Raised the mandatory retirement age from 60 to 65 years of age
October 2020: Revised the elder system (made it possible to work up the age of 75)

147

Meiden Group CSR

Initiatives to Employ People with Disabilities

We established the special subsidiary company, MEIDEN UNIVERSAL SERVICE LTD., in order tocreate opportunities for people with intellectual disabilities to work, and thereafter we havebeen expanding the scope of employment at each manufacturing facility through branch
deployment, etc. In 2015, MEIDEN UNIVERSAL SERVICE LTD. received a commendation fromthe governor of Gunma Prefecture as a “business of excellence for the employment of people
with disabilities in Gunma Prefecture” for its contributions to employment and occupational
independence for people with disabilities over many years.
Meidensha also promotes employment of people with disabilities. From 2021, we aim toincrease the number of workplaces that welcome people with disabilities and promotecompany-wide hiring activities.
Ratio of Employees with Disabilities (Meidensha and MEIDEN UNIVERSAL SERVICE)
Item
June,
June,
June,
June,
2017
2018
2019
2020
Ratio of Employees 2.24
2.24
2.42
2.50
with Disabilities (%)
Statutory
2.0
2.2
2.2
2.2
Employment Rate
(%)

June,
2021
2.46
2.3

Initiative to promote understanding of LGBTQ

The Meiden Group includes correctly understanding LGBTQ people as part of the basic policyon the promotion of understanding of sexual minorities (LGBTQ), and is promoting the creationof an environment in which the sexuality and individuality of all people is respected, and each
employee is able to maximize their abilities and participate.
As an initiative to promote understanding of LGBTQ people, we are establishing systems andworkplaces that provide correct knowledge and understanding of diverse sexualities, ensurethat prejudice, discrimination, and harassment based on sexual orientation and gender identity
are prevented, and enable enthusiasm and maximization of abilities, irrespective of sexual
orientation and gender identity.
FY2022 Initiatives
Releasing the Meiden Group Human Rights Policy
Removing the gender column from the hiring entry sheet
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Meiden Group CSR

Conducting training (e-Learning) concerning prevention of harassment, including prevention
of SOGI harassment
Conducting training (e-Learning) focusing on fundamental knowledge concerning LGBTQ
peopleEstablishing an LGBTQ consultation desk
Posting the basic policy on the promotion of understanding of LGBTQ people on the
Company’s website
Participating in the OUT JAPAN LGBT-Ally project
We participated in a project aimed at increasing the number of allies, even if only by one, withthe theme of “anyone can be an ally.” We are introducing the content of LGBTQ initiatives andsponsoring local pride event banners.

Promotion of Participation by Foreign Employees

As an aspect of our effort to promote diversity, the Meiden Group employs people irrespectiveof nationality, and these workers are also active in various fields including sales, development
and design after joining the Company. We also support them in various ways so that they can
get used to work and life in Japan as soon as possible, as well as individually appoint theirtraining personnel and provide various support to each and every one of them in order toimprove work skills.

Creating a Comfortable Workplace Environment for Employees from a Variety
of Cultural Backgrounds
Since fiscal 2017, we have established prayer spaces at some offices to create a work
environment that makes it easier for employees from various cultural backgrounds to work.

Work Style Reform

Rolling Out “Smart Work 2024” ― Toward improved work efficiency andproductivity ―The Meiden Group promotes reduction of work outside of regular hours and taking leave as animportant management issue. We are rolling out Smart Work, which promotes reduction ofannual working hours.
In FY2021, we considered the creation of a comfortable working environment for employees,
and promoted communication through a hybrid office/remote work model, and the introductionof a flex-time system and shared offices, etc., based on the opinions of the employee survey
and the working group, as part of the Professional Development & Diversity Promotion Project.
Furthermore, we created an internal systems environment and promoted improved work
efficiency and productivity in order to enable performance of the same functions as in theoffice through remote work. We also introduced a system for shortened working hours, in orderto enable both treatment of illness and work, and reviewed our HR system to enable all
employees to work for a long time with peace of mind, rather than just those engaged inchildcare or nursing care. Going forward, we will continue to realize improved work efficiency
and productivity by promoting flexible work-styles and digital transformation for all companies.
149

Meiden Group CSR

Vision and Target Values of “Smart Work 2024”
We will realize work styles based on legal compliance by reviewing and improving the work styleitself, and eliminating working on holidays and overtime on weekdays.
People worked
Average hours of Total actual working
overtime >80
overtime
hours per yearh/monthFY2024 targets
Achieved Zero
19 hours/personUnder 1,800
monthhours/person*Average overtime hours, and total actual working hours per year are the average figure perperson at Meidensha and Meiden Engineering<Reference>Total actual working hours per year
FY2018FY2019FY2020Total actual
2,027
1,985
1,990
hours/year
hours/year
working hours hours/year
per year*Average figure per person at Meidensha and Meiden Engineering

FY2021
1,977
hours/year

Promoting Flexible Work Styles (Establishment of Satellite Offices)

In our Smart Work initiatives, we have been focusing on implementing strategies to improve
productivity and realize a positive workplace environment.
As part of this, we expanded our satellite office at the Numazu Works in September 2018.

Numazu Works Satellite Office

In August 2019, the head office refresh space "Meiden Plaza" was completely renewed, andenvironments have been created where employees can use in various scenes, such as being
able to use it as a satellite office for business travelers from other districts. The space isbroadly divided into four areas (meeting area, café area, satellite area, and Skype area). The
concept of space is different for each area, and users can use it according to the application of
the day. In addition, new private seats have also been installed, so anybody can use the area
150

Meiden Group CSR

not only for lunch with colleagues and friends, but also feel free to eat lunch alone. In addition,a large-scale projector and broadcasting equipment have been introduced and can be used asa seminar venue for about 100 people. The space also functions as a company-wide disaster
response headquarters in the event of a disaster.

The refurbished Meiden Plaza. The layout is easy to use for individuals and groups.
In March 2020, we completely renovated lounge in the R&D Center. We changed the namefrom “Lounge” to “Relaffice” (a conjunction of “relax” and “office”), to reflect an innovative
space that is more useful to employees.
Not only useful as a satellite office, it also features a roundtable space for small group
discussions and active exchanges of ideas. This bright and invigorating space allows employees
to work in a refreshing environment.

The R&D Center Relaffice: Available for an even greater range of uses than before.
In FY2021 we renovated the satellite office at Nagoya Works, and created a new community
space. In addition to use for internal and external meetings and as a satellite office for
employees on business trips, it is useful for taking a break or a change of scenery.

Nagoya Works Satellite Office. The interior is colorful and there are various types of seatsavailable.

Creating a Fulfilling Workplace
Personnel Treatment System

151

Meiden Group CSR

In April 2015, we revised our personnel treatment system for general employees to give
employees an incentive to contribute to the Company and to further improve their motivation.
The system aims to operate personnel treatment that can reward employees with higher
contributions, by balancing the "role" and "contribution" of employees, with a system that allows
multi-truck type qualification and treatment according to their degree of contribution.
Furthermore, in order to be able to respond to a diversity of work style, it is also a system thatallows both executives and general employees can work in a limited area.

Diagram of the Personnel Treatment System

Major Initiatives
1. MBO
In order to ensure high evaluation transparency, we use the MBO
Performance(management by objectives) performance measuring system
Measuring System coordinated with MAP activities*.
Meidensha’s reform and improvement activities (MAP = Meiden
Advantage Program)
2. Self-Reporting The self-reporting system helps employees develop personal talent
Systemand form career plans.
3. Meister Program We operate a Meister system that specially treats employees who
contribute to the Company with outstanding skills as highly
specialized professionals. We have certified 23 certified personnel as
Meisters from 2008 to 2021.
4. Job Rotation
We have adopted a job rotation program to develop the abilities of
Systemour young employees.

152

Meiden Group CSR

Ensuring a Complete Welfare System to Support the Lifestyles of Employees
and Help Them to Refresh
1. Housing Lease System

We have a housing lease system that caters to people at all stages of life, from single
dormitories for people that have newly joined the company through to family housing andhouses for married couples. In addition, we offer full support systems for transferees in orderto relieve any strain placed on them, including a system of providing assistance to rent
appliances in addition to leasing corporate housing.

2. Welfare Service

We have introduced a general welfare service as a system to meet the diversifying needs of
employees. As a service unique to Meidensha, there are tickets for lodging and popular themeparks, an additional Company assistance to specific menus such as childcare/nursing care. In
addition to a menu that enhances leisure time for the purpose of family travel and refreshment,a menu is also prepared to support the balance between work and private life, with the aim offurther enhancing the system.

3. Cultural Events and Club Activities

Various cultural/sport events are planned and held at each business office or sites for the
purpose of employee interaction, refreshment, and overcome lack of exercise. Sports events
held on holidays, such as sports festivals, provide opportunities for employees and theirfamilies to socialize, and they have become regular events each year.
In fiscal 2020, amid the COVID-19 pandemic, we collected photographs with messages writtenby employees, a theme song based video message to invigorate the Meiden Group, and posted
it on the internal portal site, as part of an initiative for employees to encourage each other. In
FY2020 and FY2021, in the midst of the COVID-19 pandemic, we held a remote riddle-solving
event and an online sports festival as events for employees to have a good time together andcooperate.
In addition, there are a variety of company-recognized circles in cultural/sports fields, andthrough these activities, employee's friendships are promoted beyond workplaces and ages.

Internal bowling tournament

Soccer spectator tour

153

Meiden Group CSR

Meiden Group Sports Festa

Club activities

Communication Revitalization Initiatives
Industrial relations

Meidensha has concluded a labor agreement with the Meidensha Union and we periodicallyexchange opinions and conduct consultations about management policies, business conditions,and the working conditions of employees at the Central Management Conference and theCentral Staff Gathering. We are promoting the creation of an environment where employees
can securely work without interruption because labor and management respect each other’s
positions and sincerely engage in dialog.

Employee Awareness Survey

We conduct an annual employee awareness survey for all employees. Each year, the response
rate is close to 95%, demonstrating how much our employees value the survey. The survey
comprises seven sections, which are “vision and management policy,” “motivation,” “career,”“management,” “evaluation systems,” “diversity,” and “workplace environment.” The purpose of
the survey is to statistically understand what employees feel about their work, working
conditions, and other general company-related information. In addition to the numerical resultsof the survey, we also evaluate the various measures and initiatives based on what employees
really think written in the free description section, and use them for future measures. We
further hold workshops for the head of each business unit and provide feedback andopportunities for discussion of results. Information gained from survey results and exchangesof opinion is reflected in the following year’s business unit targets.

154

Meiden Group CSRResults Data

HR Data

Basic Data

Employees (only Meidensha)

Number of
employees(nonconsolidated)
Domestic
subsidiaries
Overseassubsidiaries
Number of
consolidated
employees*1
Number of
foreign
employees(nonconsolidated)
Domestic
subsidiaries
Number of
foreign
employees
Overseassubsidiaries
Number of
foreign
employees

MaleFemaleTotal
Male
FemaleTotal
Male
FemaleTotal
Male
FemaleTotal
Male
FemaleTotal
Male
FemaleTotal
Male
FemaleTotal

Units
PeoplePeoplePeoplePeoplePeoplePeoplePeoplePeoplePeoplePeoplePeoplePeoplePeoplePeoplePeoplePeoplePeoplePeoplePeoplePeoplePeopleFY2019
3,367
557
3,924

0

0

9,599
17
8
25

0

0
155

FY2020
3,371
571
3,942
3,056
469
3,525
1,642
358
2,000
8,069
1,398
9,467
21
11
32
6
2
8
1,510
354
1,864

FY2021
3,431
596
4,027
3,242
484
3,726
1,733
437
2,170
8,406
1,517
9,923
19
10
29
10
2
12
1,597
434
2,031
Meiden Group CSR

Number offoreignconsolidated
employees*1

Units
PeoplePeoplePeople％FY2019Male
FemaleTotal
Proportion of all employees
accounted for by contractors
and temporary workers
Average age
Male
Age
Female
Age
Total
Age
Years ofMale
Years
employment
Female
Years
Total
Years
Number ofMale
Peoplemanagers*2
FemalePeopleForeigners People
Managers ofMale
Peoplelevel of general
FemalePeoplemanager orabove*2
Foreigners People
Officers*2
MalePeopleFemalePeopleForeigners People
Executive
Male
Peopleofficers*2
FemalePeopleForeigners People

156

1,974
13.7

FY2020
1,537
367
1,904
13.8

FY2021
1,626
446
2,072
14.3

41.7
43.1
41.9
17.6
19.6
17.9
932
36
4
192
3
0
34
0
0
24
0
0

42.9
43.4
43.0
18.7
20.0
18.9
973
40
6
214
5
0
35
1
0
24
0
0

43.8
43.6
43.8
18.4
19.1
18.5
985
45
5
215
4
0
34
1
0
25
0
0

Meiden Group CSR

Proportion of
women*2 *3

Units

FY20193.70
1.54

FY20203.95
2.28

FY2021
4.37
1.83

Managers ％Managers ％of level ofgeneralmanageror above
Officers ％
0
2.78
2.86
Executive ％000
officers
Number of people with
People103
108
107
disabilities employed*4 *5
Rate of employment of
％
2.42
2.50
2.46
people with disabilities*4 *5
Number ofMale
People65
75
69
employees
FemalePeople11
511leaving thecompany
Total
People76
80
80(voluntary)
Rate of
Male
％
1.9
1.7
employees
Female％0.1
0.3
leaving thecompany％
2.0
2.0(voluntary)*6 *7 Total
Rate of union membership ％
64.7
65.1
65.2
Annual average salary*8
Yen7,528,871 7,508,585 7,368,835*1 Applicable organizations: The Meiden Group*2 As of March each year
*3 Number of female managers are divided by number of total managers.
*4 Applicable organizations: Meidensha and special subsidiary*5 Legally mandated employment rate: 2.2% (2.3% from March 2021)
The number was calculated in consideration of those with severe disabilities, etc. The specificnumber was 75.
*6 Ratio of employees leaving the company is calculated as follows: Number of people thathave voluntarily left their position in the last fiscal year as of the end of each fiscal
year/number of employees as of April 1 each fiscal year
*7 There is no difference in basic salary between men and women at the Meiden Group.

157

Meiden Group CSR

Number of Employees by Age (only Meidensha) (as of March 31, 2022)

Under 30
30-39
40-49
50-59
60 or over

605
695
689
1,157
285

Male

121
67
173
209
26

Female

726
762
862
1,366
311

Total

Graduate Recruits (only Meidensha)

University graduate Junior/technicalcollege graduates
Male Female Total
60 15
75 5

High school
graduates/other

Total

Joined
47
127
April
2019
Joined
52 16
68 6
35
109
April
2020
Joined
55 14
69 9
42
120
April
2021
Joined
0 0
0 0
0
0
April
2022
* University graduates includes those with master’s degrees and doctorates. Junior/technicalcollege graduates includes those who attended colleges of technology

158

Meiden Group CSRMid-Career Hires (only Meidensha)

2018.4 － 2019.3
2019.4 － 2020.3
2020.4 － 2021.3
2021.4 － 2022.3

University graduate
Male Female Total
28
4
32
45
1
46
40
4
44
0
0
0

Other
Male Female
24
7
12
1
10
3
0
0

Total
63
59
57
0

Work Style-Related (only Meidensha)

People taking maternity leave
PeopleMale employees whose Male
Peoplespouses gave birthduring the current fiscal
year*1
Female employees who Female People
gave birth during thecurrent fiscal year
Total
PeoplePeople who took
Male
Peopleparental leave(within 1
week)Female People
Total
PeopleRate of People who took Male％
parental leave
Female ％Total％
Rate of return afterMale％leave of absence forFemale ％child care purposes
Total
％
159

Units

FY2019 FY2020 FY2021
12
6
12
104
76
76
11

5

11

115
1
43
9
53

81
4
32
5
41
47
100
51
100
100
100

101
7
29
11
47
40
100
47
100
100
100

100
100
100

Meiden Group CSR

Units

FY2019 FY2020 FY2021
4
3
0
23
23
23

People taking family care leave
PeopleAverage days of paid leaveDays
allocated
Average days of paid leave taken Days
16
15
17
Rate of taking paid leave
％
68
64
72
Average total hours worked perhours/year/person 1,978 1,980 1,970
year*2*1 The number for men includes special leave (not legally required) for spousal maternity.
*2 Annual total hours worked: The actual hours worked over the course of a year, comprising
official working hours plus overtime minus leave taken.
Proportion of Employees that Underwent a Periodic Review of Results and Career Development(only Meidensha)

Proportion of employees thatreceive feedback interviews

MaleFemaleTotal
Managers
Regularemployees
Total

160

Units FY2019 FY2020 FY2021％ 93.794.9
93.9％ 95.6
97.5
94.7％ 94.095.3
94.0％ 92.3
94.6
95.6％ 94.7
95.5
93.5
％

94.0

95.3

94.0

Meiden Group CSRHome Sustainability

SocialHR Development

SocialHR Development
PolicyHR Development Policy

We value our employees as the foundation of the Company and support each one to grow andfulfill their potential.
1. We clearly state the required qualities and abilities for employees, and conduct systematictraining in order to implement and promote our business strategy.
2. We provide each employee with opportunities to engage in self-directed and multifaceted
learning.
3. We create an environment that is supportive of employees embracing new challenges.
Plan and Targets

We implement many training programs to encourage employee growth in different aspects as
an employee, member of society, and professional.
The Medium-Term Management Plan 2024 aims to strengthen human capital in conjunction
with sustainability management, and will focus on further human resource development so thatdiverse human resources can accept each other's individuality and make the most of theirabilities.As part of this, we are promoting growth through opportunities to work with diverse
personnel, such as our system of offering staff placements in Japan for employees of overseas
subsidiaries, the foreign trainee system, and the overseas assignment system.
We are also enhancing our innovation education so that employees have the creativity anddrive to try new things without being trapped by conventional ideas and methods, and fostering
an environment conducive to innovation.

161

Meiden Group CSR

Organization

Training system

Level-Dependent CurriculumThis training facilitates understanding of the roles, abilities and skills required of each age
group or qualification level. Smooth growth and implementation are expected from this training.

Selective ProgramThis training hones the way of thinking, skills, and practical abilities to solve management
problems with the aim of enhancing management capabilities.

Optional ProgramThis training teaches the knowledge and skills necessary for employees to achieve their own
career goals.

Technical Training

This training teaches product knowledge according to the technical level of the employee.

Self-Development and Acquisition of Qualifications

When the prescribed correspondence course is completed, we will cover 60% of course fees or
the full amount if completed with high grades.
We provide incentives for acquiring prescribed public qualifications at the time of acquisition.

162

Meiden Group CSR

Initiatives

Development of Personnel with Abilities to Implement and Promote
Our Business Strategy
Extensive Technical Education

In fiscal 2018, we established the Meiden Youth Academy in order to enhance technicaleducation for young employees. We conduct education regarding electricity, which is essential
to understand Meidensha’s technologies and products, for both technical and administrative
employees. In fiscal 2019, we launched the ICT Fundamentals Course, and we are working toconduct ICT fundamentals education and design mindset education, which are essential toachieve digital transformation.
In fiscal 2022, we will conduct education to further promote fundamental knowledge ofelectricity, and education to enhance skills as digitally-literate personnel, such as drills for
operation of actual equipment through programming and data analysis drills.

Acquisition and Transmission of Techniques and Skills

At the technical training center, Manabi-ya, which was established at Numazu Works, we
provide technical and skills education with instruction by coaches led by experienced
employees , and systematically train and improve the level of engineers, in order to rapidly
train them and to pass on techniques and skills. In particular, maintenance engineers spend one
year learning at this technical training center to acquire maintenance techniques. In fiscal 2021,
163

Meiden Group CSR

maintenance engineers who had completed their one-year training period transitioned to work
experience at a factory.
We also increased our experiential education content using VR (virtual reality), AR (augmented
reality), and MR (mixed reality) and we are expanding its utilization for safety and technicaleducation.
This facility is also open to customers and local residents, and has been visited by over 1,000
people in the course of a year.

Technological training center (Manabi-ya)(opened in October 2020)Blackout procedure training using MR

Developing the Next Generation of Group Personnel
Systematic Development of Management Personnel

Since fiscal 2019, we have established a new Career Development Management Program, a
training program to systematically and strategically develop the next generation of personnel.
We aim to develop personnel that can think and act with a broad perspective and outlook thatexceed the bounds of their own areas of specialty and roles by selecting and recruiting young
and mid-level personnel to attend business school and engage in professional exchange withpeople outside of their own business divisions, factories, and business units, engage in personal
exchange with overseas subsidiaries and Japanese subsidiaries, and engage in cultural
exchange through placement outside of the Group and at government institutions, etc. We
have newly added a young employee program to selective training in order to systematicallydevelop the next generation of management personnel.
In addition, we increase creativity and foster innovative mindset through absorption of diverse
knowledge and broadening experiences, by introducing the Innovation Professional
Development Program for the next generation of management and using professional
development measures to provide experience in new areas.

164

Meiden Group CSR

Systematic Development of Management Personnel

We are working to improve the management capabilities of general managers of each businessby conducting training concerning the knowledge and skills necessary to operate in the current
management environment, such as finance and accounting training, which is necessary for
accurate decision-making, and presentation training for the purpose of improving
communication abilities, as well as sending managers to outside seminars, etc.

Local Staff Development

Since fiscal 2018, the Meiden Group has been conducting a Japanese exchange program for
local staff (employees of overseas subsidiaries) in order to develop personnel who are
candidates for leadership positions at overseas subsidiaries. The program includes interaction
with Meidensha management, observations at Japanese sites and factories to which products
are delivered, and on-the-job training at various workplaces for the purpose of increasing
preparedness to take on leadership roles and the knowledge necessary for top management
positions in the Meiden Group. This Group-wide interaction of personnel and creating personalconnections will bring the Meiden Group together.

Career Formation and Networking of Young Employees
Raising Awareness of Career Formation

We conduct a rotation system to systematically develop young employees. Based on a rotation
model, individuals share their career plans with their workplaces and the HR Department, andwe implement rotation through regular interviews, etc. Having young employees experience a165

Meiden Group CSR

variety of jobs supports early development of their ability and raises their awareness of careerformation.

Revitalizing the MFC Mentor System

In fiscal 2016, we introduced the MFC mentor system for the purpose of strengthening internal
connections between young employees and building an atmosphere of professional
development. The MFC stands for “Meiden Family Chain” with the idea that staff would form a
supportive familial bond where they would support each other like links in a chain. We refermentors as “seniors” and mentees as “juniors.” We also have groups consisting of multiple
pairs, which we call them “families,” that create bonds that go beyond divisions and business
units. We provide further impetus to activities by holding social events for families, and by
establishing a Promotion Committee for young employees to plan and implement companywide activities.
Composition of MFC Families

Results Data

Data

Number of Participants in Each Type of Training
Training TypeFY2018FY2019
Hierarchical
2,802
2,181
program
Selective
67
123
program
Optional
85
57
program
Technical
657
934
training
Total
3,611
3,295

166

FY20202,463

FY2021
2,569

130

135

55

40

1,090

1,603

3,738

4,347

Meiden Group CSR

Data Concerning Professional Development
Item
FY2018FY2019FY2020
FY2021
Total expenses 97,940,000 yen 95,432,000 yen 71,664,000 yen 78,010,000 yen
of educationand training*1
Total hours of 43,332 hours 48,385 hours 51,583 hours 56,050 hours
education andtraining*2*1 Excludes personnel expenses for trainers and management and administrative expenses fortraining facilities, etc.
*2 Training days x designated work hours x number of participants (excludes OJT and remotetraining).

167

Meiden Group CSRHome Sustainability

SocialOccupational Safety and HealthSocialOccupational Safety and Health
PolicyRolling Out Safety and Health Activities Based on the Top
Management’s Safety and Health Management Policy

The Meiden Group develops the “President’s Safety and Health Policy” and the “President’s
Health & Productivity Management Policy” every year, and rolls out occupational safety andhealth and health management activities based on them. The President’s policy is an
overarching policy that applies to all people who work at the Meidensha group, including
contractors as well as each site (works and branch) and construction business unit ofMeidensha and its affiliates (English and Chinese editions distributed to overseas affiliates).
We have explicitly stated that ensuring the safety and health of each employee is at the core ofcorporate management, and we aim to eliminate workplace accidents and maintain and improvehealth.
◇ The Meiden Group Occupational Safety and Health Action Guidelines“Safety comes first before anything else” and “Nothing is more valuable than good health”

1. Basic Policy

The Meiden Group views the safety and health of employees as being central to management
value, and we implement our Corporate Code of Conduct of “working to ensure a safe
environment that is conducive to work and achieve comfort and affluence for employees,” andaim to be a leading health and safety company, through revitalization of health and safety
activities at all national and local businesses.

2. Action Guidelines(1) Based on the awareness that ensuring safety and health is reliant on good communication,
prevent occupational accidents and occupational diseases by conducting appropriately
managed workplace environment reforms with participation by all employees.
(2) Comply with relevant laws including the Industrial Safety and Health Act, as well as business
unit and workplace rules relating to safety and health.
(3) Sustainably boost safety and health awareness and conduct 4M reforms through the Safety
and Health Management System.
* 4M: Management, machine, media, man(4) Ensure thorough risk assessment to identify and evaluate safety and health risks, including
near-miss incidents, and eliminate or reduce risks to acceptable levels in all workplaces.
(5) Enhance safety and health education, increase opportunities to experience the importance168

Meiden Group CSR

of safety and health, and increase each individual’s sensitivity to danger.
(6) Promote work-life balance and work style reforms.
(7) Work to improve the health awareness and health literacy of each employee.
(8) Enhance mental health promotion systems and promotion of workplaces that do not result
in mental illness.
(9) Prevent impairment of health due to smoking.
(10) Support prevention and response to ensure that employees can participate in a healthymanner for a long time.
Organization

The Meiden Group Organization System for Occupational Safety
and Health and Health & Productivity Management

169

Meiden Group CSR

Supervision of Safety and Health Led by Top Management

In Japan, we comply with laws and regulations, hold monthly meetings of the Safety and HealthCommittee at each site, where we encourage participation by unions and employees, andconduct consultation and information sharing relating to matters such as causes of andresponses to industrial accidents, the status of employees that have taken leave due to illness,and other matters that require attention. The Central Safety and Health Committee, chaired by
the President, discusses and makes decisions on matters relating to Group-wide policies andtargets.
Results, Plan, and Targets

FY2021 Results● Results of Occupational Safety and Health Initiatives

Certification status of the occupational safety and health management system

1) Acquired ISO 45001
Area
Scope
Meidensha (factories, Research and Development Business Unit, Staff
Ota area
Business Unit, Gunma Branch), on-site affiliates** On-site affiliates: MEIDEN KIDEN KOGYO CO., LTD. / MEIDEN KOHSAN
CO., LTD., Ota Branch / MEIDEN FACILITY SERVICE CORPORATION /MEIDEN SYSTEM SOLUTIONS CORPORATION, Ota Branch / MEIDEN
UNIVERSAL SERVICE LTD., Headquarters
Numazu area Meidensha (factories, Research and Development Business Unit, Staff
Business Unit), on-site affiliates** On-site affiliates: MEIDEN SYSTEM MANUFACTURING CORPORATION /MEIDEN KOHSAN CO., LTD., Numazu Branch / MEIDEN SHOJI CO., LTD.,
Numazu Branch / MEIDEN SYSTEM SOLUTIONS CORPORATION,
Headquarters / MEIDEN UNIVERSAL SERVICE LTD., Numazu Branch /MEIDEN TECHNO SYSTEMS CO., LTD., Headquarters / MEIDEN PLANT
SYSTEMS CORPORATION, Equipment Factory / MEIDEN FACILITYSERVICE CORPORATION / MEIDEN CHEMICAL CO., LTD., Headquarters
KOFU MEIDENSHA ELECTRIC MFG. CO., LTD. / MEIDENSHA CORPORATION
Kofu area(EV Components Business Unit in Kofu and Motor Drive Solutions Business
Unit)

Nagoya area

Meidensha (factories, Research and Development Business Unit, Staff
Business Unit), on-site affiliates*

170

Meiden Group CSR

Area

Scope
* On-site affiliates: MEIDEN SYSTEM SOLUTIONS CORPORATION, Nagoya
Branch / MEIDEN UNIVERSAL SERVICE LTD., Nagoya Branch
Headquarters Meidensha (Research and Development Business Unit, Staff Business Unit,
other business units), local affiliates*area* Local affiliates: MEIDEN KOHSAN CO., LTD., headquarters / MEIDENSHOJI CO., LTD., headquarters / MEIDEN SYSTEM SOLUTIONSCORPORATION, Tokyo Branch / MEIDEN UNIVERSAL SERVICE LTD.,Tokyo Branch / MEIDEN TECHNO SYSTEMS CO., LTD., Tokyo Works,
MEIDEN AQUA BUSINESS COMPANY, M WINDS CO., LTD., MEIDEN
MASTER PARTNERS CORPORATION, MEIDEN NANOPROCESSINNOVATIONS, INC.
Planning & Administration Division, Construction Work Policy &Plant
Construction & Administration Division / Northern Japan Construction Department / Kansai &Chubu Areas Construction Department / Plant Construction Projects Support
Engineering
Business Group Department / Western Japan Construction Department
Domestic
affiliates

MEIDEN PLANT SYSTEMS CORPORATION Headquarters and Western Japan
BranchBranches(including
works inMeidensha’s
jurisdiction)
Overseassubsidiaries

Hokkaido Branch / Tohoku Brach / Yokohama Branch / Kitakanto Branch /Higashikanto Branch / Shizuoka Branch / Niigata Branch / Hokuriku Branch /Chubu Branch Office / Kansai Branch Office / Shikoku Branch / Chugoku
Branch / Kyushu Branch
SHANGHAI MEIDENSHA CHANGCHENG SWITCHGEAR CO., LTD. / MEIDENZHENGZHOU ELECTRIC CO., LTD. / MEIDEN SINGAPORE PTE.LTD. / P.T.
MEIDEN ENGINEERING INDONESIA / MEIDEN T&D (INDIA) LIMITEDAs shown above, we have obtained external certification (ISO 45001) for each domestic regionand overseas subsidiaries, and 72% of the Group has obtained certification on a per-employee
basis (as of March 31, 2022).

Promoting the Occupational Safety and Health Management
SystemMove from OHSAS 18001 to ISO 45001 Certification

In FY2015, the Meiden Group obtained OHSAS 18001 certification for all sites at the four main
Japanese production sites of Ota Works, Numazu Works, Nagoya Works and Kofu Meidensha
Electric Mfg. Co., Ltd., including on-site affiliates. Furthermore, Meiden Singapore Pte. Ltd.
obtained certification in FY2013, and the four remaining main overseas sites of Meiden
171

Meiden Group CSR

Zhengzhou Electric Co., Ltd., Shanghai Meidensha Changcheng Switchgear Co., Ltd., PT. Meiden
Engineering Indonesia, and MEIDEN T&D (INDIA) LIMITED obtained certification in FY 2017.
Since FY2018, we have promoted penetration of the Occupational Safety and HealthManagement System to the entire Group, as well as transition to and expanded application of
ISO 45001 certification due to the need for international standards.

Acquisition of International Standard ISO 45001

In FY2019, we acquired joint certification for the four main Japanese production sites (OtaWorks, Numazu Works, Nagoya Works, and Kofu Meidensha Electric Mfg. Co., Ltd. *including
on-site affiliates) under ISO 45001. In FY2020, we expanded ISO 45001 certification to
Japanese workplaces other than production sites (Tokyo office, branches) and construction
business units (Plant Construction Headquarters).
In FY2021, we plan to acquire certification for four Japanese affiliates. (MEIDEN PLANT
SYSTEMS CORPORATION, MEIDEN AQUA BUSINESS COMPANY, M WINDS CO., LTD., andMEIDEN NANOPROCESS INNOVATIONS, INC.)
Going forward, we will aim to create and promote an occupational safety and healthmanagement system at all sites.
Rate of ISO 45001 Acquisition (as of March 31, 2022)
Japan
Total number ofsites
OHS Management
ISO45001 acquisition

100 sites

Number of sitesthat have acquired
certification
95 sites

Proportion (%)

Number of sitesthat have acquired
certification
5 sites

Proportion (%)

95％

Overseas
Total number ofsites
OHS Management
ISO45001 acquisition

10 sites

172

50％

Meiden Group CSR

Plan and Targets

Safety and Health Indicators

Occupational Safety and Health Indicators (Meiden Group)
Meiden Occupational accidents Traffic Occupational People with absencesGroup(cases)accidents diseases
due to illness of at(cases)(cases) least one month (rateof absence)*1
Lost time No lost Accident
Total
Mentalaccidents time
during(including
accidents work
mental)FY2021 2729
0
19 people 16 people(target
(33%
(14%
(10%
(0.5%)(0.4%)
values)reduction reduction reduction
(10%
(10%
compared compared compared
reduction reduction
compared comparedwith the with the with theprevious previous previous
with the with thefiscal year) fiscal year) fiscal year)
previous previous
fiscal year) fiscal year)
FY2021 311126
035 people 20 people(established(0.44%) (0.50%)
values)
FY2022 2688031 people 18 people(target
(33%
(45%
(30%
(0.38%) (0.4%)
values)reduction reduction reduction
(10%
(10%
compared compared compared
reduction reduction
compared comparedwith the with the with theprevious previous previous
with the with thefiscal year) fiscal year) fiscal year)
previous previous
fiscal year) fiscal year)*1 Proportion of employees who were absent for a month or more
Occupational Safety and Health Data (only Meidensha)
Item
2018*1
2019
Lost time accidents 1.42
0.60
rate*2
Severity rate of lost 1.28
0.00
time accidents*3

173

0.76
0.00

2020

0.44

2021

0.00

Meiden Group CSR

Item
2018*1
2019
2020
2021
Number of fatalities 1000(cases)Number of lost time 61
1
2
accidents (cases)*4
Number of no lost
3
3
4
6
time accidents (cases)*1 Proportion of employees (excluding dispatch workers) who were absent for a month or more
due to illness.
*2 “Frequency rate” indicates the frequency of casualty due to industrial accidents per 1 million
gross hours of actual work.
If the same person was damaged more than once, the number of casualties is calculated as thenumber of accidents.
*3 “Severity rate” indicates the significant degree calculated from days of lost work due toindustrial accidents per thousand gross hours of actual work.
*4 “Accidents accompanied by lost worktime” refers to accidents that require at least one day
off work according to Meidensha’s own calculation standards.
Safety Record (only Meidensha)

174

Meiden Group CSR

Number of official participants in the Combined Labor and Management Safety and HealthCommittee as labor delegates
Item
FY2020
FY2021
Proportion of total workers 0.77%
0.77%(those whose operation or (26 delegates/3,363 people) (24 delegates/x4,027 people)
workplace is underorganizational control) that
send delegates to the
Combined Labor andManagement Safety and
Health Committee

Health and Safety Initiatives
Initiatives

The Meiden Group has experienced many industrial accidents over its long history.
So far, we have conducted a range of initiatives to prevent industrial accidents such as
conducting KYK (risk anticipation activities), risk assessment, introducing safety patrols, andsafety and health management systems (ISO 45001).

Promoting Remote Safety Patrols

As movement has been restricted due to the impact of the COVID-19 pandemic, we have been
conducting remote patrols since FY2021 by using remote communication tools to connect one(patrol location) to many (sites and subsidiaries). We were able to gain many hints to improvesite health and safety based on new realizations from being seen by many people and advice
from many remote participants.
In FY2022, we also plan to promote remote patrols for overseas sites.
175

Meiden Group CSRPromoting Safety Experience Education

In November 2019, we created hands-on safety experience truck no. 2 to conduct safety
experience education for employees, and conducted safety experience education for
production sites (Numazu, Ota, Nagoya, and Kofu). Safety experience trucks are fitted with aVR system combined with a 3 axis simulator to enable a more realistic experience of industrial
accidents.
VR can also be provided outside the Company through a subscription service.
In March 2021, we newly developed Metaverse Safety Experience Education. Instructors andattendees participate as avatars (characters that indicate your presence), allowing us torecreate an education environment that is close to safety experience education conducted inreal life, using the Metaverse (a virtual environment that allows free activity via the Internet byusing an avatar).

Provision of a Health and Safety Portal

In October 2021, we began providing subscription services for our Safety Information Portalthat utilizes the health and safety management know-how accumulated through our internal
operations. It is currently possible to centrally manage and analyze health and safety
information from functions such as near miss, industrial accident reports, safety patrols, risk
assessment sheets, and e-Learning. By using a cloud environment, the system can be usedanywhere there is an internet environment, with low initial costs by utilizing a cloudenvironment.
We believe that we can encourage increased safety awareness and promotion of activities by
176

Meiden Group CSR

conducting health and safety management through this service. We plan to expand thefunctions in the future.

Opening of the Safety Promotion Center

Immediately following an industrial accident, the entire company
comes together and vows never to repeat the same mistake; thisresolve, however, fades as time passes. In particular, if managers
of workplaces where an industrial accident has occurred aretransferred, this increases the rate at which lessons learned fromthe accident fade.
We established the Safety Promotion Center as a place toencourage story-telling and thinking about industrial accidents
that have occurred.
We believe it is whole Meidensha’s duty to discuss and remember
the experience of bitter accidents without turning away fromthem.
The Meiden Group promotes initiatives to raise safety awarenessand eliminate industrial accidents through trainings by using asafety-car to experience and by keeping safety awareness in our
mind at the Safety Promotion Center.

Occupational Health and Safety Training Attendees (Only Meidensha)
Occupational Health and Safety Education Results (FY2021)
Training outline
Number of times
conducted
Safety experience
Training for the
As required
education
purpose of increasing
sensitivity to danger
General health and Foreman education,
99
safety education
ability development
education, etc.
177

Number ofparticipants
921
1,390

Meiden Group CSR

Training outline
Traffic safety
education

In principle, held
twice each fiscal year.
Held at each site
Danger Experience
Training for the
Seminars through purpose of increasingcollaboration with sensitivity to danger
the Japan Industrial
Safety & Health
Association

178

Number of times
conducted
14

Number ofparticipants
2,731

11

270

Meiden Group CSRHome Sustainability

SocialCommunity

SocialCommunity
PolicyPolicy on Local Employment and Procurement

The Meiden Group gains awareness of issues and forms positive relationships with communities
through lively two-way communication in countries and regions in which we conduct business.
Furthermore, the Meiden Group is aware of the importance of local hiring and local
procurement to contribute to sustainable development in these countries and regions. The
Meiden Group is working to contribute to the economic development of countries and regionsin which we conduct business through a range of initiatives.

Social Contribution Policies

Meiden Group Social Contribution Policies
1. We shall contribute to the sustainable development of society through our main
business of manufacturer and supplier of electromechanical products.
2. We appreciate the local communities that support our business activities and we shall
execute social contribution that helps the progress of community development.
3. The Group’s executive officers and employees shall voluntarily support our social
contribution initiatives.

We are working to conduct positive communication with people in the local community and our
stakeholders that support us on a day-to-day basis, through contributions to society according
to the Meiden Group Social Contribution Policies.
In 1918, Take Shigemune, the second President of the Company and wife of the Founder, Hosui
Shigemune, used her own funds to establish Hosui Elementary School in Osaki (Shinagawa City,
Tokyo), an area where the Company had a factory. Following in her footsteps, the Meiden
Group will make a wide variety of social contributions through our active involvement with local
communities and with society.

The Meiden Group’s Aims: Solving Social Issues Through Our Business

The Meiden Group aims to be a company that accepts the challenge of solving social issues by
providing new value created through its business activities, in order to achieve our ideal stateof being “work to build a new society through integrity to the earth, society, and people, andthrough the power of co-creation”. Solving social issues through our core business leads togrowth, and this aligns with the Meiden Group Social Contribution Policy.
179

Meiden Group CSR

In terms of our social contribution activities, by conducting social contribution activities that aresuited to the Meiden Group, with features that leverage the skills and knowledge of employees,
such as manufacturing classes and visiting science lectures that leverage the technology andproducts developed through our business, we contribute to the solution of social issues, suchas lack of engineers and STEM personnel due to children drifting away from science, and thedevelopment of local communities. We believe that these activities will eventually lead to thebuilding of a relationship of trust with our stakeholders, which in the long run will lead to theenhancement of corporate value and the securing of excellent human resources.

Policies to Support Local Communities

Conducting Social Contribution Activities that Contribute to the Development of Local
Communities

The Meiden Group conducts business activities in various countries and regions and is
supported byhiring workers from surrounding areas and building positive relationships. Basedon Meiden Group Social Contribution Policy 2. “we appreciate the local communities that
support our business activities and we shall execute social contribution that helps the progressof community development,” we conduct internships (job experience), support for education,
volunteer activities, and environmental activities, etc. In Japan, each year, we actively conduct
internships (job experience) for university, vocational college, and high school students, andprovide career-path support and opportunities to deepen understanding of work and society.
The Meiden Group will continue to engage in a range of social contribution activities andcontribute to the development of local communities.
Results Data

Social Contribution expenditure
FY2018 FY2019 FY2020 FY2021
Social Contribution Expenditure (yen) 38,000,000 60,000,000 35,000,000 27,000,000* Social Contribution expenditure includes donations and sponsorship costs.
Initiatives

Contributions to Local Economies

Commencement of Comprehensive Water Supply Operation in Eastern Gunma
Prefecture

In order to tackle a range of issues arising from aging water service personnel employed by
local governments such as labor shortages, passing on of skills, and risk management, theMeiden Group not only designs and manufactures electrical equipment, but offers a one-stop
service that includes maintenance services, and management of the operation of facilities. In
April 2017, a private sector group, for which Meidensha is the representative company,
established East Gunma Water Supply Service Co., Ltd. along with the East Gunma Water
180

Meiden Group CSR

Supply Industry Association through joint financing, and commenced water supply operations
and comprehensive projects including extension works in three cities and five towns in the East
Gunma region. Through this venture, we were able to achieve efficient business administrationand transmission of skills to personnel, achieve public benefit, create new employment
opportunities, and reduce maintenance costs, by leveraging the skills and knowhow of private
enterprise.

Community Investment

In Support of Local Community and Government Initiatives: Donation of Facilities to
Schools in Thailand

In the Kingdom of Thailand, we donated facilities for two schools in the mountainous regions of
the north of Thailand, which are populated by ethnic minorities, in fiscal 2017, to celebrate
Meidensha’s 120th anniversary and the 50th anniversary of THAI MEIDENSHA CO., LTD. We
donated a library and a water tank to Kalayaniwattana Secondary School, which was one ofthose schools. As these regions are surrounded by mountains, it takes a long time to travel toschool and many students choose to live in dormitories. With this water tank to store the waterthat is necessary for life and this library to help students learn, Meidensha was able to support
children’s rights and business principles, improve the learning environment for children inaccordance with these principles, and contribute to the provision of opportunities for children
to receive reliable and high-quality education. Employees of THAI MEIDENSHA CO., LTD. visit
the two schools to which facilities were donated on an ongoing basis, conduct learning
activities, etc., and maintain connections with teachers and the local community throughactivities with students.

181

Meiden Group CSRSocial Contribution Activities (Examples and Results of FY2021
initiatives)

Meidensha Manufacturing Classes: Teaching Children about the Joy of Manufacturing

Since fiscal 2007, which was our 110th anniversary, we have held
Meidensha Manufacturing Classes at elementary schools locatednearby each of our sites, including Hosui Elementary School.
Through these Manufacturing Classes, we will enable children toexperience the joy of manufacturing by having them assemble
and operate toys that incorporate motors by themselves. Morethan 10,000 children have participated the activity so far. Since
fiscal 2018, we have held Manufacturing Classes at Iwakuni
Elementary School, which was attended by our founder,
Shigemune Hosui.
In fiscal 2021, we held the classes at Iwakuni Municipal
Elementary, Shinagawa Municipal Hosui Elementary school, andtwo municipal elementary schools in Ota City, with a total of 60
Meiden Group employees and 393 children participating in theclasses.

Visiting Science Lectures for Junior High Schools Nearby Meidensha Sites

Since fiscal 2017 we have held visiting lectures entitled “Howdoes electricity reach us?” for second-year junior high school
students in the areas around our sites, through which children
can learn about the importance of electricity through experience.
In fiscal 2021, we conducted visiting science lectures for 277
second and third-year students at Shinagawa Municipal Osaki
Junior High School and Ota Municipal Junior High School. A totalof 17 Meiden Group employees served as instructors andassistants.

Observation at the New Skills Training Center, Manabi-ya, by local technical high school
students

In June 2021, the new skills training center, Manabi-ya, located at Numazu Works, hosted an
observation by 39 technical high school students who study electronics and robotics. Thisobservation was designed to provide the hands-on safety experiences to students from local
technical high schools. The students successively visited the Manabi-ya Digital Zone, thepractical training area, and the study area.
Going forward, we will hold more observations for local schools and contribute to the learningof even more students through Manabi-ya.

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Environmental Beautification Activities at Sites around JapanThe Meiden Group engages in environmental beautification activities such as cleaning up litter
and weeding at sites around Japan on a day-to-day basis, in order to coexist with local
communities. Local residents value the contributions we have made over many years, and thesebeautification activities also contribute to a sense of social contribution and foster a sense ofcommunity amongst employees.

Donation of Ozone Water Treatment Spray to Municipalities

For the purpose of helping to prevent COVID-19 infection, each of Meidensha Works in Tokyo,
Numazu, Ota, and Nagoya donated ozonized water generation spray and purified water for
special use to Shinagawa in Tokyo, Numazu City in Shizuoka, Ota City in Gunma, and Kiyosu Cityin Aichi, respectively. Ozonized water generation spray has the function of converting water
into ozone water, that is said to be highly effective in inactivating viruses and bacteria.

Cherry Blossom Festival at Mikawashima Water Reclamation Center

The Plant Construction & Engineering Business Group holds an event for local children, at
facilities owned by a customer that is conducting construction work to install our products, aspart of its local contribution activities. We will actively engage in activities that lead to regional
revitalization and local exchange.

Development of Wind Generator Maintenance Personnel Through Visiting Lectures at
High Schools in Akita

M WINDS Co., Ltd., which conducts operation and maintenance services for wind farms,
conducted visiting lectures about maintenance of wind power generation system and the job ofa chief electrical engineer at three high schools in Akita Prefecture in December 2021. These
lectures were conducted for high school students as part of the Akita Prefecture Wind
Generator Maintenance Personnel Education Project, with the aim of training engineers and183

Meiden Group CSR

retaining young people in the prefecture.
During the lecture, an instructor appealed to the high school
students about the attractiveness of the job, saying, "It is
responsible for the safety of both engineers on site and electricalequipment. It is hard work, but very rewarding," and encouraged
them to "start studying while you are in high school and aim to
obtain a chief electrical engineer's license." As the movement tointroduce renewable energy progresses in order to work toward
the realization of a carbon-free society, there are even higher
expectations for the wind power sector, and going forward, it will
be important to secure and train maintenance personnel.
The M WINDS Akita Sales Office is involved with the maintenanceof 18 wind turbines at the Hachiryu Wind Farm, which is ownedby the Company, and eight wind turbines owned by othercompanies in the area. We are enhancing employing from within
Akita Prefecture, and focusing on training engineers. Goingforward, we will continue to contribute to the spread and stablesupply of renewable energy rooted in local areas by focusing on
coexistence and co-creation with local communities for businessexpansion.

Creating Safety Experience Education VR Content in academic-industrial partnerships

As part of our social contribution activities through academicindustrial partnerships, MEIDEN SYSTEM SOLUTIONSCORPORATION held a curriculum to develop VR (virtual reality)
content to be used in safety experience education along withstudents majoring in game programming at Shizuoka Institute ofTechnology and Industry. We proposed the project to theinstitute and this partnership was realized, based on the idea that
there is a wide range of needs in the world for VR development,
not only in the video game field, as in this safety experienceeducation, and that we hope students learn about the concept ofmanufacturing in a company. On the final day of the lecture, acontent developed by four students that included examples ofthe dangers associated with "texting while walking" was reported
as a result of the project.
The Meiden Group has conducted safety experience education
since 2008 to improve employees’ sensitivity to danger, andsince then, we have also conducted education on commission byvisiting factories, worksites, etc., in response to external demand.
We plan to add the content created by the students of Shizuoka
Institute of Technology and Industry, where we gave the lecture,
to our new VR safety experience education menu during FY2022.

184

Meiden Group CSRHome Sustainability

Corporate Governance

Sustainability

Corporate GovernanceCorporate GovernanceRisk Management

ComplianceDialogues with Shareholders andInvestors

185

Meiden Group CSRHome Sustainability

Corporate Governance Corporate GovernanceCorporate GovernanceCorporate Governance
PolicyBasic Approach

Under our corporate mission of “illuminating a more affluent tomorrow” and our corporate
philosophy of providing the value “for customer peace of mind and satisfaction,”our group ofcompanies takes the basic stance that we maintain fair and steady business activities withrespect for people and the global environment, operate businesses focusing on profit whileconstantly pursuing new technology and high quality, and endeavor to contribute to prosperityof society. In order to implement this basic stance, we formulated the “Basic Policy to Improve
the Governance to Secure Fair Business Practices” at the regular Board of Directors’ meeting
held in May 2006. In addition, we revised said basic policy at the regular Board of Directors’
meeting held in July 2022, as a result of a review of the officer system to further clarify thedivision of roles between executive functions (executive officers) and so-called supervisory
functions (directors and the Board of Directors).
The Company will work to further improve the fairness, efficiency, and transparency ofmanagement by promoting initiatives to enhance corporate governance in accordance with the
Corporate Governance Code.
Organization and Initiatives

Corporate Governance Structure and Initiatives

We are a company with an Audit and Supervisory Committee, and we aim to further strengthen
corporate governance in the following areas.
(a) In order for the Directors who are members of Audit & Supervisory Committee having
right to vote in the Board of Directors as well as having the right to express position
statement on nomination and compensation at meetings of shareholders to further
enhance the supervisory function by utilizing the legal authority.
(b) In order to further enhance discussions on management strategies, etc. by transferring
the Board of Directors’ meeting to a monitoring type, since a portion of the Board of
Directors' authority to make decision on business execution has been transferred to the
Director & President and Executive Officer (Executive Officers’ Meeting).
(c) We aim to further promote separation of supervisory and executive functions by making
changes to increase legitimacy in June 2022, and combining it with the transfer ofauthority mentioned in (b) through the introduction of an executive officer system in June
2003, and a system for election of executive officers who are responsible for a flexible
and agile business execution system by the Board of Directors, based on the Articles ofIncorporation.
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Meiden Group CSRCorporate Governance Structure: Supervision and Management and Internal Control
SystemOutline of Corporate Governance Structure
Form of
Organization
Directors
Directors (Audit &Supervisory
Committee
Members)
Number of
Independent
Officers

Company with an Audit & Supervisory Committee
Number of directors (outside directors): 7 (3)Number of directors (outside directors): 4 (3)
6 (3 outside directors and 3 outside directors (Audit & Supervisory
Committee members))(1) The Company’s Board of Directors

In principle, the Board of Directors convenes on a regular monthly basis and holds ad-hoc
meetings as necessary, to discuss major executive matters, business issues, and management
issues related to the Company's business execution. In fiscal 2021, the Board of Directors held
13 meetings, and the attendance rate was 100% for all directors.

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① Composition of Board of Directors

The Company's Board of Directors consists of 11 Directors, including four directors who are
Audit & Supervisory Committee members, and six Outside Directors, including three Audit &Supervisory Committee members.
We have introduced a system to ensure that independent outside directors account for the
majority of the Board of Directors since they meet the standards of the Company's Criteria for
Determining the Independence of Outside Directors, ensure the effectiveness of thesupervisory functions of the Board of Directors, and fully incorporate objective andindependent opinions into the Company’s management.
Meidensha’s outside directors satisfy the requirements of independent directors as stipulated
in the rules of the Tokyo Stock Exchange.

② Policy for Appointment of Candidates for Director and Appointment/Dismissal
Process

The basic policy for the appointment of directors of the Company is to ensure the diversity of
the Board of Directors as a whole and to balance the expertise required of the Company’s
Board of Directors with the awareness, experience, and abilities of individual Directors.
The basic policy for the appointment of directors who are Audit & Supervisory Committee
members is to ensure overall diversity of directors who are Audit & Supervisory Committee
members and a balanced composition, according to knowledge and experience, etc., relating toaccounting, finance, and law, etc.
The number of the Company’s directors is stipulated as a number that is sufficient to fully
deliberate on management issues, with an upper limit of 15 members.
Based on the above, we create a directors’ skill matrix, nominate candidates for director thatwill contribute to the enhancement of the Board of Directors decision-making function andoversight function, by resolution of the Board of Directors, with advice from the Nomination &Compensation Committee* (voluntary committee), which is chaired by an independent outside
director. The candidates are then presented at the General Meeting of Shareholders.
Furthermore, with regard to the dismissal of directors, if it is discovered that a director hasbreached the law or the Articles of Incorporation, or committed acts that flagrantly breach thedirector’s nomination policy, the Board of Directors will take the necessary steps to dismiss
said director with the advice of the Nomination & Compensation Committee.
* Meidensha established a voluntary Compensation Committee in December 2017. In December
2018, the Committee took on the functions of a voluntary nomination committee to become
the Nomination & Compensation Committee. The Nomination & Compensation Committee ischaired by an independent outside director and is comprised of three outside directors andfive other directors who are executive officers, including the Director & Chairman and Executive
Officer. Independent outside directors account for the majority of the committee.
Meidensha Report 2022 – Board of Directors & Executive Officers

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Meiden Group CSR

③ Executive Officer System and Executive Structure

Meidensha introduced an executive officer system in June 2003 in order to streamline theBoard of Directors, as well as to accelerate management decision-making and to enhancesupervisory functions. At the same time, we sought to reinforce the functions of the Board of
Directors by promoting the separation of the decision-making authority and supervisory
function from the business performance function held by the Board of Directors.
Based on the Articles of Incorporation, executive officers selected by the Board of Directors
assume responsibility for the execution of specified tasks within the scope of authoritytransferred by the Executive Officers' Meeting and the President and Executive Officer, andnimbly perform executive functions under the supervision of the Board of Directors, eachdirector, and the Executive Officers’ Meeting, in accordance with the Meiden Group’s
management policies determined by the Board of Directors.
The Executive Officers’ Meeting, which comprises Executive Officers with Titles, is created forexecutive decision-making, and decides matters based on the rules of internal approval, as wellas matters for which consultation from a full-company perspective is required. Furthermore,apart from the meeting body to make decisions, we established advisory and internal bodies
such as review and strategy meetings, and with regard to important management matters, wecreated a system wherein thorough discussion and deliberation are conducted prior todecision-making, and follow-up strategy and planning and improvement initiatives are
conducted following decision-making.
The outline and main points of the proceedings at the Executive Officers' Meeting and otherinternal meetings are reported as the status of business execution at the Regular Board of
Directors’ meetings to ensure and improve the effectiveness and supervisory functions of theBoard of Directors. As to execute business, executive directors and executive officers with theauthority are taking attempt initiatives agilely by making resolutions and settlements. In thisway, we are working to conduct executive functions autonomously and nimbly. With thetransfer of a portion of authority for business execution from the Board of Directors to the
executive directors and executive officers, executive officers must submit a business execution
status report to the Board of Directors at least once every three months in order to ensure theeffectiveness of functional supervision by the Board of Directors.

(2) Effectiveness Evaluation of the Board of Directors

Meidensha has a mechanism in place to conduct an analysis and evaluation of the effectivenessof the Board of Directors in order to strengthen the supervisory function of the Board of
Directors.
With regard to the activities of the Board of Directors in fiscal 2021, all members of the Boardof Directors, including outside directors, conducted self-evaluations of the effectiveness of theBoard of Directors, and the following discussions took place at the meeting of the Board of
Directors in May 2022, in order to revitalize deliberations by the Board of Directors.
i Items EvaluatedComposition (scale and diversity, etc.) and operation (means of resolution, reporting, anddiscussion, etc.) of the Board of Directors, self-evaluations concerning effectiveness of theBoard of Directors, and other issues and opinions, etc., relating to the future effectiveness of
the Board of Directors
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Meiden Group CSR

ii Outline of Analysis and Evaluation Results
The results of the evaluation of each director were collected, and after deliberation by the
Board of Directors, it was determined that the quality of operation and deliberation is sufficient,sufficient opinions and advice have been received from outside directors, and the effectivenessof the Board of Directors is currently secure. In the course of the evaluation, we reaffirmed ourintention to further increase the provision of information to outside directors with a view tostrengthen the supervisory function of the Board of Directors as a monitoring-type Board of
Directors, through further increased level of the agenda of the Board of Directors andpromotion of separation of supervisory and executive functions.
Going forward, we will promote initiatives to further improve the effectiveness of the Board of
Directors.

Composition of the Board of Directors, Nomination & Compensation Committee, andAudit & Supervisory Committee and FY2021 Attendance(Period: April 1, 2021 to March 31, 2022)
Name

Position (as of March 31,
2021)

Yuji
Hamasaki

ChairmanMember of Nomination &Compensation Committee
Representative Director,
President
Member of Nomination &Compensation Committee
Representative Director,
Executive Vice President
Director, Senior Managing
Executive Officer
Director, Senior Managing
Executive Officer
Director, Senior Managing
Executive Officer
Director, Senior Managing
Executive Officer
Outside Director Member ofNomination & Compensation
Committee

Takeshi
Miida
ShosukeMori
Norio
Takekawa
Nobuaki
Tamaki
Masayuki
Iwao
TatsukiMochizuki
Hiroyuki
Takenaka

Board of Nomination & Audit andDirectors Compensation Supervisory
Committee Committee(13 / 13) (10 / 10)
－
〇

190

(13 / 13)(10 / 10)－(13 / 13)－－

(13 / 13)－－

(13 / 13)－－(10 / 10)－－(10 / 10)－－(13 / 13)(10 / 10)〇－

Meiden Group CSR

Junji Yasui Outside Director(13 / 13) (2 / 2)－
Member of Nomination &Compensation Committee
Tadayoshi Director (Standing Audit &(13 / 13) －(17 / 17)
Machimura Supervisory Committee〇
Member)Michihiko Director (Standing Audit &(10 / 10) －(14 / 14)
Kato
Supervisory Committee
Member)YoshiakiOutside Director (Audit &(13 / 13) (8 / 8)
(17 / 17)
Shin
Supervisory Committee
Member)Member of Nomination &Compensation Committee
Mitsuru
Outside Director (Audit &(13 / 13) －(17 / 17)
NawataSupervisory Committee
Member)Keiko
Outside Director (Audit &(13 / 13) －(17 / 17)
HayashiSupervisory Committee
Member)
Note 1: Refers to the chair of the Board of Directors, Audit & Supervisory Board, and eachcommittee
Note 2: Attendance of each type of meeting is marked (Attendance / Holding)Training for Officers
Legal training is conducted for officers on an annual basis, for the purpose of improving theeffectiveness of the Board of Directors and internal control.
In fiscal 2021, we conducted training by outside instructors, relating to caution concerning
entertainment of public servants, as part of internal control activities conducted at allcompanies.
The Meiden Group conducted trainings on the Companies Act for new officers of Meidensha
and affiliated companies.

(3) Initiatives to Utilize Outside Directors

Meidensha seeks active participation in management by outside directors, in order to enhance
the supervisory function of the Board of Directors. As such, we are conducting the following
initiatives to ensure free and active debates.

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Meiden Group CSR

i Advance Explanation of Agenda Items of the Board of Directors
We hold explanatory meetings for outside directors, presented by Executive Officers with Titles,
in advance, so that directors are able to confirm the content of agenda items prior toparticipating in meetings of the Board of Directors. Our system allows us to accept questions,etc., relating to the content of agendas in advance and prepare an explanation to be given at
the meeting of the Board of Directors, and this revitalizes and enriches deliberations.
ii Matters for Discussion by the Board of Directors
In addition to agenda items and reporting matters of the Board of Directors, we take up
matters concerning our basic management plans, such as the Medium-term Management Planand major themes required of a company with an Audit & Supervisory Committee, and discusstracing, etc., as matters for consultation.
We will leverage the knowledge of outside directors to facilitate active exchange of opinions
concerning the Company’s management issues and strategies, as well as corporate
governance, and use this as an opportunity to build consensus at the planning stage, prior toresolutions by the Board of Directors.
iii Timely and Appropriate Sharing of Information Beyond the Board of Directors’
AgendaBesides the agenda for the meeting, Meidensha provides briefings on current topics relating to
the company at meetings of the Board of Directors, with the aim of timely and appropriate
sharing of information with outside directors, so that they can share the status of the Company
in a timely fashion.
iv Training for New Directors
We create opportunities to explain the Company’s business and structures, primarily to aid theunderstanding of newly appointed outside directors. The responsible officers or managers incharge of the business group explain their business, group-wide themes, and Meidensha’s
governance system to the outside directors, answer their questions, and exchange opinionswith them.

(4) Participation of Outside Directors in Board of Directors’ Meetingsⅰ Participation in the agenda
Our outside directors have diverse management experience and areas of specialization,
understand the content of the proposals put before the Board of Directors from a variety ofperspectives when said matters are explained in advance, and attend Board of Directors’
meetings having checked any unclear points in advance.
At Board of Directors’ meetings, multifaceted discussion occurs, based on the broad
perspective of managers, the knowledge of technicians, and the high-level specialization ofexperts, etc. Outside directors participate in deliberations by actively making statements, etc.,
in particular concerning policies and measures to deal with risks, and cautions when monitoring,etc.
Outside directors also contribute to strengthening of the supervisory function of the Board of
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Meiden Group CSR

Directors, such as by participating in matters concerning medium-term management plansfrom the consideration stage, making resolutions as part of the Board of Directors having
shared the Company’s goal and issues, and making statements concerning said plans at Boardof Directors’ meetings at any time.
ⅱ Participation in management
In the course of evaluating deliberations and effectiveness of the Board of Directors, outside
directors’ opinions are heard with regard to matters that require priority monitoring by the
Board of Directors and matters that require strengthening of systems, etc., which improves theagenda-setting and operation of the Board of Directors.
As we change our institutional design to that of a company with an Audit & Supervisory
Committee, and transition to a monitoring-type Board of Directors, outside directors determine
matters that should be discussed and resolved by the Board of Directors, as well as authoritythat should be transferred to the Executive Officers’ Meeting and executive officers, andpromote separation of supervisory and executive functions. They express opinions concerning
matters that require priority monitoring in the course of business execution based on theirdiverse experience and knowledge.
Based on these opinions, they create a yearly schedule for the Board of Directors, create acycle to systematically monitor the entire company, and contribute to the drafting of the Boardof Directors Rules and improvement of operations.

(5) Auditing System

The Company transitioned from the prior institutional structure of a company with an Audit &Supervisory Board to a company with an Audit & Supervisory Committee at the Annual General
Meeting of Shareholders held on June 26, 2020.
The Audit and Supervisory Committee consists of four directors, including three outside
directors, who are Audit & Supervisory Committee members, and there is also a Support andAdvisory Division for Audit and Supervisory Committee has been established as a staff
organization to support the Audit and Supervisory Committee. The committee communicateswith directors, the Internal Auditing Division, and other related divisions, while adhering to theauditing policies, allotted duties, and auditing rules, etc., for Audit & Supervisory Committee
members stipulated by the Audit & Supervisory Committee. Committee members attend
meetings of the Board of Directors and other important meetings, and audit the execution of
directors’ duties through investigations of business and financial conditions. Directors who are
Audit & Supervisory Committee members are granted authority, such as voting rights atmeetings of the Board of Directors and the right to present a position statement at meetingsof the Board of Directors relating to nomination and compensation of officers at the Annual
General Meeting of Shareholders. We are therefore promoting the establishment of an auditing
framework and the enhancement of various initiatives to further strengthen the supervisory
function of the Board of Directors, which is the aim of altering our institutional design, throughnew activities such as monitoring and auditing, etc. of the transfer of authority to executive
directors(Executive Officers’ Meeting) and the status of the governance that guarantees it, in
addition to auditing activities, and by further strengthening cooperation with outside directors,
etc.

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(6) Internal Auditing Systemi Organization
We have established the Internal Auditing Division (14 members as of March 31, 2022). The
Internal Auditing Division is independent from other executive lines, and conducts internal
audits to check the effectiveness and efficiency of business operations, the reliability offinancial reporting, the status of compliance with laws and regulations, and the maintenance ofassets, covering the Company and all Group companies at home and abroad as an organization
under the direct jurisdiction of the Director & President and Executive Officer.
With regard to internal control, the Internal Control Promotion Division is the specialized
division that establishes risk management systems that integrate the entire group, promotes
enhancement of internal control systems, and ensures complete internal control functions
through joint monitoring of internal control systems by the Audit & Supervisory Committee andthe Internal Auditing Division.
ii Method of audits
In FY2021, internal audits were mainly conducted by two methods. Meidensha is transitioning
from our previous rotating audits to a risk-based approach. We conducted risk-based audits at
17 business units, which comprehensively covered risks based on major risks facing allcompanies confirmed by the Risk Management Committee, and prioritized high-risk areas. In
FY2022, in addition to major risks facing all companies, the Internal Auditing Division will
evaluate risks from multiple perspectives, select and audit auditing targets in consideration of
this.
At subsidiaries, we conducted new standardized audits using audit standardization tools at one
Japanese subsidiary and 14 overseas subsidiaries to improve the comprehensiveness of risks
in audits.

(7) Strengthening Group Governance

The Meiden Group is working to continuously strengthen group governance by developing
basic policies based on the “Basic Policy to Improve Governance Structure to Secure Fair
Business Practices” at each Meiden Group company, establishing a regulatory framework, andimplementing the PDCA cycle.
1. Establishing a Framework(1) Our Board of Directors has established the Corporate Policy Planning Group, theIntegrated Sales Group, and the Internal Control Promotion Division as group-wide
management organizations, and created a system for each Group company to report to
the Company.
(2) There is a system to dispatch general officers or non-standing officers from the Company
to Group companies to oversee the operations of said Group companies.
(3) The Company dispatches non-standing auditors to major domestic Group companies tostrengthen audits.
(4) Meidensha’s Internal Auditing Division conducts audits to ensure appropriate businesspractices at each Group company.

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2. Main Initiatives in Fiscal 2021
The Group Company Internal Control Committee meets twice yearly. It shared the top risksfacing the Group and the progress of each company’s risk management, and started
conducting risk management education and instruction for each business unit of overseas
subsidiaries.
At the settlement and business plan reporting sessions in Japan and the overseas strategy
meetings overseas, we worked to continue to establish the discussion and reporting system forsubsidiaries, which requires reporting of business issues, etc., and based on this, provides anopportunity to share the main risks faced by each subsidiary, and consider and thoroughly
implement measures. In addition, at the Internal Auditing Department we incorporated
standardized audits that comprehensively evaluate standard tasks, and conducted internal
audits at one Japanese subsidiary and 14 overseas subsidiaries.

Officers’ Compensation

Directors compensation policy

i Level and System of Compensation
The level of compensation of Meidensha’s directors is determined based on external objective
compensation market data, economic conditions, industry trends, and Meidensha’s businesscircumstances, etc. The content of the officers’ compensation system is determined by theinternal officers’ compensation regulations having received consultation and confirmation by
the aforementioned Nomination & Compensation Committee, giving consideration to this level.
ii Composition of Compensation(a) Directors (excluding Audit & Supervisory Committee members and outside directors)
Compensation of directors (excluding Audit & Supervisory Committee members and outside
directors) is based on annual salary system with performance-linked compensation, andcomprises basic compensation and incentive compensation according to each role. Of thesetypes of compensation, incentive compensation comprises compensation that is linked tobusiness performance as a short-term incentive and stock compensation as a medium to longterm incentive.

Target Proportion of Each Type of Compensation (if 100% of targets were achieved)(b) Directors and Outside Directors Who Are Audit & Supervisory Committee Members
Directors and outside directors who are Audit & Supervisory Committee members only receive
basic compensation on annual salary system basis.

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Meiden Group CSR

iii Incentive Compensation System
Performance-linked compensation, which is a short-term incentive, varies from 0 to 140
depending on the degree of achievement of targets, with perfect achievement of targets
counting as 100. We use operating income, which is also used for our financial targets in theMedium-term Management Plan, as a performance evaluation indicator, and give consideration
to revisions according to operating conditions and changes to the roles of each officer, etc.

Calculation Formula
Stock compensation, which is a medium to long-term incentive, grants shares to the Officers’
Shareholders Association for the purpose of further promoting sharing of profit and loss withshareholders.
iv Compensation Determination Procedures
The Nomination & Compensation Committee confirms and considers the content of thecompensation system and the amount of compensation from an objective perspective prior todetermination by the Board of Directors.

FY2021 Results
Classification

Total Amount Total Amount of Each Type of Number ofofCompensation, etc.
PeopleCompensation,(millions of yen)
etc.
Incentive(millions of Basiccompensation compensationyen)
Directors(excluding 285
195
89
9
Audit &
Supervisory
Committee
members andOutside Directors)
Outside directors 19
19
2(excluding Audit &Supervisory
Committee
members)
Directors who are 53
53
3
Audit andSupervisory
Committee
196

Meiden Group CSRmembers(excluding Outside
Directors)
Outside directors 25
25
3
who are Audit &Supervisory
Committee
members
Total
383
293
89
17
Note 1. The above number of people entitled to compensation includes two directors who
retired at the conclusion of the 157th Annual General Meeting of Shareholders held on June24, 2021 (excluding Audit & Supervisory Committee members), and one director who is an
Audit & Supervisory Committee member.

197

Meiden Group CSRBoardofDirectors&ExecutiveOﬃcersasofJuly,2022
Directors

Directors

Yuji Hamasaki

Director & Chairman and Executive Officer
Nomination & Compensation Committee Member
Reason for Selection and Expected Role

Yuji Hamasaki has served as director and Chairman overseeing all aspects of
the Group’s management since 2018. He has worked to enhance thesupervisory function of the Board of Directors as director and Chairman, andhas promoted the transition to a system design for a company with an Audit &Supervisory Committee, as well as separation of supervisory and executivefunctions.
He has been selected as he is expected to further enhance the corporate
governance of the entire Meiden Group by leveraging the aforementioned
experience and achievements, steering the direction of the Meiden Group’s
management, and further revitalizing discussions of the Board of Directors.
Career Summary

June 2004 – Executive officer of Sumitomo Electric Industries, Ltd.
June 2005 – Managing executive officer of Sumitomo Electric Industries, Ltd.
June 2006 – Managing director of Sumitomo Electric Industries, Ltd.
April 2010 – Senior managing executive officer of Meidensha
June 2010 – Director of Meidensha
April 2011 – Executive vice president of Meidensha
June 2013 – President of Meidensha
June 2018 to present – Chairman of Meidensha
June 2019 – Outside director of JVCKENWOOD Corporation
June 2022 to present – Chairman and executive officer of Meidensha

198

Meiden Group CSRTakeshi Miida

Representative Director & President and Executive Officer
Nomination & Compensation Committee Member
Reason for Selection and Expected Role

Since 2018, Takeshi Miida has worked hard as representative director andPresident. He has been involved in all aspects of management of the Meiden
Group as well as drafting and implementing the previous medium-term
management plan.
He has been selected as he is expected to leverage the aforementioned
experience and results, promote Medium-term Management Plan 2024, andenhance the oversight function of the Board of Directors through his
involvement in management as an overseer of Medium-term Management Plan
2024.
Career Summary

April 1978 – Joined Meidensha
April 2008 – Executive officer in charge of the Corporate Policy PlanningGroup and the Corporate Policy Planning Division
April 2011 – Managing executive officer in charge of the Corporate Policy
Planning Group and head of the Corporate Policy Planning Division
June 2012 – Director
April 2015 – Executive vice president
June 2018 to present – President
June 2022 to present – President and executive officer

Norio Takekawa

Representative Director & Executive Vice President and Executive Officer
Reason for Selection and Expected Role

Norio Takekawa worked hard to improve the production and quality control
system under the previous medium-term management plan. This fiscal year, heis responsible for integrating all technology and production.
He has been selected as he is expected to leverage the aforementioned
experience and results which will help us to further promote Medium-term
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Meiden Group CSR

Management Plan 2024 and enhance the oversight function of the Board of
Directors through his involvement in management.
Career Summary

April 1981 – Joined Meidensha
April 2015 – Executive officer in charge of the Plant Construction &Engineering Business Group
April 2017 – Managing executive officer in charge of the Production
Engineering and Management Group
April 2018 – Senior managing executive officer in charge of the Production
Engineering and Management Group
June 2018 to present – Director
April 2020 to present – Senior managing executive officer in charge of the
Plant Construction & Engineering Business Group
April 2021 to present – Senior managing executive officer
April 2022 – Director & executive vice president
June 2022 to present – Executive vice president and executive officer

Masayuki Iwao

Director and Senior Managing Executive Officer
Reason for Selection and Expected Role

Masayuki Iwao is originally from the Accounting and Finance Business Unit,
and he has worked hard to enhance the internal control and risk management
systems under the previous medium-term management plan. This fiscal year,
he is responsible for all corporate governance, and promotion of digitaltransformation, diversity, and inclusion under Medium-term Management Plan
2024.
He has been selected as he is expected to leverage the aforementioned
experience and results which will help us to further promote Medium-termManagement Plan 2024 and enhance the oversight function of the Board of
Directors through his involvement in management.
Career Summary

April 1985 – Joined Meidensha
April 2015 – Executive officer in charge of the Financing Division
April 2016 – Executive officer in charge of the Accounting and Financing
Group
April 2018 – Managing executive officer
April 2020 to present – Managing executive officer in charge of the Group for
Promotion of Internal Control
April 2021 to present – Senior managing executive officer in charge of the
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Meiden Group CSR

Group for Promotion of Internal Control and the HR and General Affairs Group
June 2021 to present – Director
April 2022 to present – Senior managing executive officer in charge of the HR
and General Affairs Headquarters

Hiroyuki Takenaka

Outside Director
Nomination & Compensation Committee Member
Reason for Selection and Expected Role

Hiroyuki Takenaka uses his extensive management experience spanning many
years and broad knowledge to tirelessly work to improve the Meiden Group’s
corporate governance. At present, he is serving as chair of the voluntary
Nomination & Compensation Committee and contributing to improved
transparency of management.
He has been selected as he is expected to fill roles such as providing
instruction and advice to further enhance the supervisory function of theBoard of Directors and ensure appropriate risk-taking, by continuing to reflect
the aforementioned experience and knowledge at meetings of Meidensha’s
Board of Directors.
Career Summary

June 2001 – Director of Sumitomo Electric Industries, Ltd.
June 2003 – Executive officer of Sumitomo Electric Industries, Ltd.
June 2004 – Managing director of Sumitomo Electric Industries, Ltd.
June 2007 – Senior managing director in charge of the Electrical Cable,
Materials, and Energy Business Headquarters and the Production Technology
Headquarters of Sumitomo Electric Industries, Ltd.
June 2008 – Senior managing director in charge of the electrical cable,materials, and energy business headquarters oof Sumitomo Electric Industries,
Ltd.
May 2010 – Senior managing director of Sumitomo Electric Industries, Ltd.
June 2010 – Executive vice president of Sumitomo Electric Industries, Ltd.
June 2013 to present – Outside Director of Meidensha

Yoshiaki Shin
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Meiden Group CSR

Director (outside director)
Nomination & Compensation Committee Member
Reason for Selection and Expected Role

To this point, Yoshiaki Shin has used his extensive management experience andwide-ranging knowledge to make solid contributions to auditing andsupervisory functions as a director who is an Audit & Supervisory Committee
member. He has been selected as he is expected to fill roles such as providing
instruction and advice to further enhance the supervisory function of theBoard of Directors and ensure appropriate risk-taking, by continuing to reflect
the aforementioned experience and knowledge at meetings of Meidensha’s
Board of Directors.
Career Summary

April 2008 – Director and chair of Mitsui Sumitomo Insurance Group Holdings,
Incorporated
April 2010 – Director of Mitsui Sumitomo Insurance Co., Ltd.
April 2010 – Consultant at MS & AD Insurance Group Holdings, Inc.
April 2011 – Standing consultant at Mitsui Sumitomo Insurance Co., Ltd.
June 2012 – Outside Audit & Supervisory Board Member of Meidensha
June 2012 – Director of DSB Co., Ltd.
April 2014 to present – Senior advisor to Mitsui Sumitomo Insurance Co., Ltd.
June 2020 – Director (Audit & Supervisory Committee member) of Meidensha
April 2021 to present – Honorary consultant at Mitsui Sumitomo Insurance Co.,Ltd.
June 2022 to present – Outside director of Meidensha

Hiroji Adachi
Outside director

Reason for Selection and Expected Role

Hiroji Adachi posesses extensive management experience, broad insight, andwide-ranging views and knowledge gained through initiatives to promote digitaltransformation, etc. He has been selected as he is expected to fill roles such asproviding instruction and advice to further enhance the supervisory function of
the Board of Directors and ensure appropriate risk-taking, by reflecting the
aforementioned experience and knowledge at meetings of Meidensha’s Boardof Directors.
Career Summary

April 2008 – Executive officer of Nippon Oil Corporation
June 2012 – Managing executive officer of JX Holdings, Inc. (currently ENEOS
Holdings, Inc.)
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Meiden Group CSR

June 2014 – Outside director of Toho Titanium Co., Ltd.
June 2015 – Director and managing executive officer of JX Holdings, Inc.
Outside director of INPEX Corporation
Outside director of Maruwn Corporation
April 2020 – Director, managing executive officer, and chief digital officer of
ENEOS Holdings, Inc.
June 2020 – Director, executive vice president, executive officer, and chief
digital officer of ENEOS Holdings, Inc.
Director, executive vice president, executive officer, chief digital officer, andassistant president of ENEOS Corporation
June 2021 –Trustee of ENEOS Holdings, Inc.
June 2022 to present – Outside director of Meidensha

Michihiko Kato

Director and Audit & Supervisory Committee Member (Full-time Audit &Supervisory Committee Member)
Reason for Selection and Expected Role

Michihiko Kato mainly has sales experience in the social infrastructurebusiness. He has worked hard to enhance sales capabilities in his roleoverseeing all sales under the previous medium-term management plan. He not
only has sales experience; he also has supervision experience in theConstruction Business Unit. He possesses extensive experience andknowledge.
He has been selected as he is expected to further enhance audit andsupervisory functions by showcasing the aforementioned extensive experiencein Meidensha’s audits and at meetings of the Board of Directors.
Career Summary

April 1982 – Joined Meidensha
April 2014 – Executive officer in charge of the Water and Environment Division
and Sales Division
April 2016 – Managing executive officer in charge of the Water andEnvironment Division
April 2017 – Managing executive officer
April 2020 – Managing executive officer in charge of the Sales Planning and
Coordination Group
April 2021 – Senior trustee
June 2021 to present – Director (Audit & Supervisory Committee member)

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Meiden Group CSR

Keiko Hayashi

Director and Audit & Supervisory Committee Member (Outside Director)
Nomination & Compensation Committee Member
Reason for Selection and Expected Role

Keiko Hayashi has a high-level of expertise and extensive experience as anaccountant spanning many years. She has gained wide-ranging views andknowledge through organizational diversity promotion initiatives. She has been
selected as she is expected to further enhance audit and supervisory functions
by reflecting the aforementioned expertise, experience, views, and knowledge
in Meidensha’s audits and meetings of the Board of Directors.
Career Summary

April 1986 – Joined the Tokyo Regional Taxation Bureau
October 1990 – Joined Tohmatsu & Co. (currently Deloitte Touche Tohmatsu
LLC)
March 1994 – Registered as a certified public accountant
July 2006 – Partner of Tohmatsu Audit Corporation
July 2016 to present – Managing director of The Japanese Institute ofCertified Public Accountants
November 2018 – Representative director of Tohmatsu Challenged Co., Ltd.
January 2019 to present – Member of Acquisition, Technology and Logistics
Agency Defense Procurement Council
June 2019 - Deloitte Tohmatsu Group D＆I committee advisor
October 2019 to present – Chair of The Japanese Institute of Certified Public
Accountants Audit and Discipline Investigation Committee
June 2020 – Outside director of Lifenet Insurance Company
June 2020 to present – Director (Audit & Supervisory Committee Member) of
Meidensha
July 2020 to present – Principal of Keiko Hayashi Accounting OfficeFebruary 2021 to present – Outside auditor of Nippon Filcon Co., Ltd.
March 2021 to present – Supervising officer of Nippon Building Fund Inc.
June 2021 to present – Outside director (Audit & Supervisory Committee
member) of Lifenet Insurance Company

204

Meiden Group CSRTakashi Kuroda

Director and Audit & Supervisory Committee Member (Outside Director)
Reason for Selection and Expected Role

Takashi Kuroda has extensive management experience and broad insightspanning many years, and has gained wide-ranging views and knowledge
through marketing. He has been selected as he is expected to further enhanceaudit and supervisory functions by reflecting the aforementioned experienceand knowledge in Meidensha’s audits and meetings of the Board of Directors.
Career Summary

April 2009 – Executive officer and general manager of the Chubu
Headquarters of Mitsui Sumitomo Insurance Co., Ltd.
April 2011 – Managing executive officer and general manager of the Tokyo
Corporate Headquarters of Mitsui Sumitomo Insurance Co., Ltd.
April 2014 – Senior managing executive officer and general manager in chargeof the Tokyo Stock Exchange First Division of Mitsui Sumitomo Insurance Co.,Ltd.
April 2015 – Director, senior managing executive officer, and general manager
in charge loss support of Mitsui Sumitomo Insurance Co., Ltd.
April 2018 – Director and executive vice president of Mitsui Sumitomo
Insurance Co., Ltd. Director and executive officer of MS & AD Insurance Group
Holdings, Inc.
April 2020 – Director of MS & AD Insurance Group Holdings, Inc.
Representative director and president of Mitsui Sumitomo Agency Service Co.,Ltd.
April 2021 to present – Outside Audit & Supervisory Board member of Mitsui
Sumitomo Aioi Life Insurance Co., Ltd.
April 2022 to present – Outside director (Audit & Supervisory Committee
member) of Meidensha

Hideki Hiraki

Director and Audit & Supervisory Committee Member (outside director)
Reason for Selection and Expected Role

Hideki Hiraki has extensive management experience and broad insightspanning many years, and has gained wide-ranging views and knowledge
through CSR and ESG. He has been selected as he is expected to further
enhance audit and supervisory functions by reflecting the aforementioned
experience and knowledge in Meidensha’s audits and meetings of the Board of
Directors.
Career Summary

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Meiden Group CSR

June 2009 – Executive officer and general manager of the integrated risk
division of The Sumitomo Trust and Banking Co., Ltd. (currently Sumitomo
Mitsui Trust Bank, Limited)
April 2011 – Executive Managing Officer of The Sumitomo Trust and Banking
Co., Ltd.
April 2015 – Senior managing executive officer of Sumitomo Mitsui Trust Bank,
LimitedApril 2017 – Director and president of Sumitomo Mitsui Trust AssetManagement Co., Ltd.
October 2018 – Director and chairman of Sumitomo Mitsui Trust AssetManagement Co., Ltd.
April 2020 – Audit & Supervisory Board member of Sumitomo Mitsui Trust
Guarantee Co., Ltd.
April 2022 to present – Outside director (Audit & Supervisory Committee
member) of Meidensha

Executive Officers
Chairman Yuji Hamasaki
and Senior
OfficerPresident Takeshi Miida
and
Executive
Officer
Executive Norio Takekawa
Vice
President
andExecutive
Officer
SeniorMasayuki Iwao
Managing Nobuaki Tamaki
Executive Tatsuki Mochizuki
Officer
Masahiko Suzuki
Akio Inoue
Managing Hiroshi Toke
Executive Satoshi Momenya
Officer
Hideki Miyazawa
Akio Ikemori
Katsuyuki Watanabe
Koji Niikura

206

Meiden Group CSRExecutive Noritaka Matsushita
OfficerHisahiro Murashima
Norio Mizutani
Takeo Suzuki
Katsunori Suzuki
Munekazu Shiratori
Kuniteru Yamaoka
Seiji Kato
Kazuhiro Yamada
Nobuya Ono
Hiroshi Takahata
Katsumi Shimamura
Takehisa Koganezawa
Ko Yamamoto
Yasuhiro Yoshino
Masami Ogawa

207

Meiden Group CSRHome Sustainability

Corporate Governance Risk Management

Corporate GovernanceRisk Management
PolicyBasic Approach

As global conditions change on a daily basis, geopolitical complexity and uncertainty are
increasing. In these conditions, we must broadly and precisely understand various businessrisks that may manifest in the future and ensure that we address them in order to guide ourbusiness strategy to success and increase corporate value.
The Meiden Group believes that it is necessary to understand major business risks faced by thewhole group, and build a system to control risks for all companies in an integrated manner,
through discussion by management (ERM = Enterprise Risk Management).
In addition to regular risk management, we also have an integrated system for managing andresponding to business continuity risks due to accidents or disasters, etc., (BCM = BusinessContinuity Management) and aim for a system that is able to respond to constantly changing
risks during regular operation and emergencies.

Risk Management Structure

The Meiden Group is building a risk management system using the following three-line model.
Business units, including factories and subsidiaries (Line 1) are introducing a risk control selfassessment (CSA) system for each business unit to identify, assess, and control, risks facing
their own business unit, while staff business units (Line 2) support the risk control of Line 1.
The Internal Auditing Department (Line 3) conducts regular audits, and verifies that the Line 1
CSA cycle and the Line 2 support functions are operating effectively.
The status of CSA ascertained through these internal audits is reported to the Executive
officer’s meeting, the Board of Directors, and responsible managers, as appropriate.
The Internal Control Promotion Department, collects risk information gathered through CSA
and risk information for which Line 2 is responsible, collates major all-company risks to be
discussed by management, and presents such to management after deliberation by the Risk
Management Committee. Management is involved in the deliberation and determination ofmajor all-company risks through this system.
The Group Governance Internal Control Committee convenes twice each year to improve Group
governance. It receives reports of the CSA status of each company and shares information
concerning major risks faced by the entire Group.

208

Meiden Group CSROperation of the Risk Management Committee

The Risk Management Committee is chaired by the Director, Senior Managing Executive Officer.
Key members of the Headquarters Staff Business Unit scrutinize the Meiden Group’s major
business risks that have been identified by the Internal Control Promotion Department anddebate response policies each half.
Managers further debate business risks debated by the Risk Management Committee at the
Executive officer’s meeting and the Board of Directors, stipulate key business risks facing the
Meiden Group, and determine response policies.
The Risk Management Committee is clearly independent from the Audit and Supervisory
Committee.

Risk Management Structure

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Meiden Group CSR

Major Risks from Business Activities

The Meiden Group stipulates major business risks to the entire Meiden Group, including in
relation to ESG, through regular discussion among managers according to systems such as
those listed above. As a result of the above discussion among managers, risks that could havea serious impact on the decisions of investors are as follows.

Major Risks Facing the Group
Ranking Risk

1
2
3
4
5
6
7
8

9
10
11
12
13

Environmental
regulations/climatechangeInadequate
procurement
management
Inadequate labor
management
Occurrence ofindustrial accident
Reduced quality

Risk assessment
Comparison
withEffectiveness Likelihood previous
Impact Likelihood Speed ofmaterialization of response of harm year’s
to brand assessment
Large High
NormalEffective
High
Large

High

Somewhat fast Somewhat SomewhathigheffectiveHigh
Somewhateffective
Large Medium Extremely fast Somewhat Somewhathigheffective
Large High
Fast
Somewhat Normal
effective
Insufficient internal Large Medium Extremely fast Effective Somewhat
highinformation
management
Outbreak of a Large High Somewhat fast Effective
Normalpandemic
Insufficient
Effective
NormalLarge High
Normalawareness or
responsiveness tochanges in market
conditions
Occurrence of a Large Medium Extremely fast Somewhat Normal
natural disaster
effective
Insufficient personnel Large High Somewhat slow Somewhat Normal
effective
Disguising quality or Large Low
Fast
SomewhatHighiniquitous inspection
effective
Inadequate cyber Large Medium Extremely fast Effective
Normalmeasures
Breach ofLarge Low Extremely fast Effective
High
Antimonopoly Act or
Large Medium

Normal

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Meiden Group CSR

14
15
16
17
18
19
20

bribery
Falsified financial Large
reports
Breach of
Large
Construction
Business Act
Changes in the global Large
economy, politics,
society
Incomplete control of Largeoverseas subsidiaries
Reduced ability to Largecater to customers
Incomplete control of Large
Japanese subsidiaries
Loss of investment Large

Low
Low

Somewhat fast Somewhat
effective
Somewhat fast Somewhat
effective

High

Low

Extremely fast

Low

Extremely fast Somewhat Somewhathigheffective
Extremely fast Normal
Normal

Low
Low
Low

NormalHigh

SomewhathighSomewhat slow Somewhat Somewhathigheffective
Somewhat fast Normal
NormalNote: Risk assessment is an independent analysis of the various risks faced by the Grouprather than a general risk assessment.
Initiatives

Risk Management Relating to Business Activities
Preliminary Risk Assessment

Preliminary risk assessment was initiated in October 2012 for the proposing business unit andthe reviewing business unit to scrutinize information necessary to make management decisions
relating to projects that may seriously negative impact the Group and provide it to managers.
More than 100 projects have been reviewed to date. Projects subject to review are generallyclassified as large scale EPCs, M&A, partnerships, joint developments, new businesses, or othermatters that require a resolution by the Executive officer’s meeting according to regulations.
In preliminary risk assessment, we encourage proposers to:(1) Identify and assess the high risk factors of EPC project such as risk of construction
works and project profit and take necessary measures to the project.
(2) Identify and assess contract risk such as commercial and technical conditions regard totenders, partnerships etc., and enhance risk management to the relatives.
(3) Analyze risk from multiple perspectives by third party experts and take measures toreduce risk.
As mentioned above, in the preliminary risk assessment, we evaluate not only financial risks, but
project risks, operation risks, etc. At present, preliminary risk assessment is operated by the
Corporate Policy Planning Group and the Group for Promotion of Internal Control, and their
responsible executives decide whether or not to conduct preliminary review. Depending on thecontent, the Legal Affairs Division, the Overseas Business Strategic Management Group, and
the Accounting and Financing Group participate in the assessment.

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Meiden Group CSR

Policies, Plans, and Targets

Business Continuity Plan (BCP)
Basic BCP Policy

The Meiden Group Basic BCP Policy stipulates the Meiden Group’s basic policy on business
continuity, business continuity targets, and response in the event of a disaster, etc., and isapplied at each business unit and subsidiary.
(1) In the event of a disaster, it is our utmost priority to ensure the safety of all employees,
their family members, and customers.
(2) We contribute to swift reconstruction and recovery from disasters, considering ourcorporate social responsibility as a company that supports social infrastructure.
(3) Limit impact on customers and Meidensha’s businesses as much as possible.

Medium-term Management Plan 2024 Initiatives

We will promote the Medium-term Management Plan２０２４, paying particular attention to thefollowing items relating to disaster-prevention and BCP.
● Ongoing BCP initiatives
Moving from an earthquake-based BCP to an “all-hazard” BCP that applies to a range of risks
Establishing a BCP and creating systems to maintain, evaluate, and confirm its effectivenessContinuing education and training, and ensuring that each employee is involved with BCP
initiatives
Extending the BCP to overseas subsidiaries, and creating a BCP with a global perspective● Improving corporate and organizational resilience
Encouraging independent promotion of BCPs by business units, and work to improve
Disaster responsiveness by company organization
Considering alternative production sites for important operations● Contributing to society and communities
Contributing to disaster-resilient community development by supplying Meidensha’s BCP
products and corporate BCP initiatives to communities and society

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Meiden Group CSR

System

BCM Promotion System

Under the BCM Committee, which determines the Meiden Group’s BCP policy and measures,the Meiden Group established the Corporate BCP Promotion Committee, BCP promotion
committees for each business, Domestic Subsidiary BCP Subcommittee, the Working Group toConsider Priority Businesses, and the Working Group to Handle and Protect Employees, andpromotes BCP throughout the Group.
Initiatives

Second Natural Disaster Response Headquarters Training

On February 14, 2022, we conducted natural disaster response headquarters training in orderto verify the effectiveness of BCPs that have been created. The training checked cooperation
between members of business units, responding business units, and remote sites, focusing on
the initial response after an earthquake directly under Tokyo. Some staff were requested toparticipate in the training remotely in consideration of measures to combat COVID-19 andpeople working from home due to future work-style reform, it was conducted with a hybrid inperson and remote model.
We will revise BCPs in light of the various issues identified during the training.

Training in progress (headquarters)

Training in progress (Osaki R&D Centerand Numazu Works)

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Meiden Group CSR

Establishment of Resilience Lab Co., Ltd.

In August 2021, we established Resilience Lab Co., Ltd. as a new startup company, with the aimof using our disaster prevention and BCP initiatives to give back to society and local
communities and strengthen all of society’s resilience to disasters. Resilience Lab Co., Ltd. wasselected by the Ministry of Economy, Trade and Industry for the 2021 Temporary-Secondment
Start-Ups Businesses, etc., and this initiative has been watched and admired by public
institutions that aim to promote self-sufficiency, mutual reliance, and public assistance.
Although only one year has passed since Resilience Lab Co., Ltd. was established, it wasawarded “excellent” by the Japan Resilience Award 2022, granted by the Association for
Resilience Japan, which was established to implement national resilience policies, and the 2022
Disaster Prevention and Mitigation x Sustainability Award and Disaster Prevention and
Mitigation x SDGs Award Solution Category Community Award, granted by the Society for
Sustainable Mitigation and Related Technologies Against Catastrophic Events.

Resilience Lab Co., Ltd. website

Japan Resilience Award 2022 Award
Ceremony

Resilience Lab Co., Ltd.

Employee Education on Disaster Prevention and BCP

We conduct ongoing employee education in disaster prevention and BCP for each level of
employment. In fiscal 2021, we conducted education for new employees and mid-career hires.
We also conducted video education concerning disaster response tools and conducted wideranging education such as education for BCP managers of Group companies.
Every year, we conduct disaster prevention drills at each works. We conducted BCP education
for all employees working in the Numazu area at the disaster prevention drills held at Numazu
Works in December 2021.

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Meiden Group CSR

Video education concerning disaster
response tools held at Numazu Works

New employee education (held online)

External Communication of Information

We widely disseminated information about Meidensha’s disaster-prevention and BCP initiatives
through online seminars and presentations, etc.
At presentations, we mainly introduce examples of our actual initiatives, and try to makepresentations useful for participating companies to their implement activities.

Presentation at Numazu
Chamber of Commerceand Industry

Presentation at Mishima
Chamber of Commerceand Industry

BCP online seminar held by
The Denki Shimbun

Exhibit at Bosai Kokutai 2021

Meidensha and Resilience Lab Co., Ltd. jointly presented an exhibit at Bosai Kokutai 2021, heldby the Cabinet Office in Kamaishi City, Iwate Prefecture on November 6 and 7, 2021. The booth
introduced Meidensha’s BCP products and Resilience Lab Co., Ltd.’s initiatives, and we wereable to promote ourselves to more than 120 visitors over the two days.

Venue: Kamaishi Civic Hall TETTO

Exhibition booth215

Meiden Group CSRResponse to the Novel Coronavirus Disease (COVID-19)

The global spread of the novel coronavirus disease (COVID-19) impacted the Meiden Group in
ways such as suspension of production at overseas sites such as China, delay of partsprocurement, and postponement of sales.
The Meiden Group established the Company-Wide Response Headquarters, created the Novel
Coronavirus (COVID-19) Response Action Guidelines and the Novel Coronavirus (COVID-19)
Response Manual, and is encouraging awareness of preventing infection (avoiding the three Cs
and reducing commuting outside of the region of factories by 70%, etc.) with the health andsafety of employees as our utmost priority, and has reduced the impact on business activities
by continuing operation of all factories in Japan in accordance with the guidelines.
Furthermore, we ensured both the health and safety of employees and business continuity atoverseas sites, by creating behavior standards to prevent infections, introducing working fromhome and rotation shifts, and accelerating the introduction of Internet communication tools, inaccordance with relevant national government policies. As COVID-19 remains a difficult issue,
we will promote new work styles through greater use of Internet communication tools.
Corresponding to COVID-19 infection
PolicyStrengthening Information Security Management

The Meiden Group understands that ensuring the security of the information we handle is amost critical issue. We therefore protect information assets from disasters, accidents, criminal
acts, errors, and other threats. We also maintain and enhance information management toprevent leaks, tampering, or theft.

Meidensha Basic Information Security Policy

1. Purpose and Scope of Information Security
Meidensha (hereinafter the “Company”) is aware that ensuring security of information assets
handled by the Company is a major management issue for the Company, and protects
information assets from threats such as disasters, accidents, crime, negligence, and cyberrisks.
By establishing and maintaining information security management, we aim to prevent
information security incidents such as leakage, falsification, or theft of information, build
relationships of trust with a range of interested parties, including shareholders and customers,
and improve corporate value of the Company. This basic policy applies to all personnel who
handle information assets managed by the Company.
2. Legal Compliance, etc.
The Company complies with obligations imposed by laws and agreements that relate tobusiness activities.
Everyone involved with business activities ensures thorough compliance with matters required
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Meiden Group CSR

by laws and regulations, obligations imposed by agreements, this policy, and internalmanagement regulations relating to information security.
3. Establishment and Maintenance of Information Security
The Company provides for information security management such as by nominating an
Information Security Manager and an Information Security Business Unit Managers, andestablishing an office, has established regulations and procedures, etc., based on the Basic
Information Security Policy, and continuously maintains and improves information security.
SystemInformation Security Control System

Information Security Management

The Meiden Group conducts information security audits of Meidensha and subsidiaries, mainly
through the Information Security Committee, and verifies and evaluates whether security
measures are actually being implemented and function.
At present, some of Meidensha and its domestic subsidiaries have received Information
Security Management System (ISMS) certification.

Initiatives

217

Meiden Group CSR

In fiscal 2021, we are continuing to implement initiatives to reinforce information security forthe entire Meiden Group.

Analysis of Incidents and Countermeasures for Each Cause

The Meiden Group is working to implement sustainable security measures in the areas of“prediction,” “defense,” “detection,” and “response.”
We analyze and implement both hardware and software measures to protect data fromunauthorized logins, etc., and virus infections from suspicious emails, such as targeted email
attacks, as well as measures mainly aim at combatting human factors such as theft, loss, ormishandling of information devices. We introduced the Security Operation Center (SOC) infiscal 2017, established a detection system that operates 24 hours per day, 365 days per year,
and in fiscal 2019, we installed next-generation antivirus software on all computers, in order toenhance detection.
We established the Meiden Computer Security Incident Response Team (CSIRT) and joined the
Nippon CSIRT Association in order to enhance response. We also conduct incident response
training and promote the establishment of internal systems to speed up response to incidents.

Information Security Education and Training

All of the Meiden Group’s officers, employees, dispatch workers, and contract workers, etc.,
engage in information security education. In fiscal 2021, we conducted e-learning concerning“information security threats based on examples.” The e-learning was attended by 90% of
employees with materials sent to those who were unable to attend online.
We continue to conduct suspicious email drills as education about cyber attacks such as
targeted email attacks.
Going forward, we will continue to strengthen hardware and software measures and continue to
conduct personnel measures, such as information security education and suspicious email
drills. We will continue to roll out measures for information security on a group-wide basis.

Enhancement of Supply Chain Information Security

Since fiscal 2017, we have continuously conducted activities to enhance information security
together with our suppliers. We ensure that suppliers are aware of information security
measures as management issues, and we hold training and information sessions as required.
Since fiscal 2021, we have utilized IPA’s Security Action, encouraged business
partners(suppliers)to obtain stars (logo) to indicate levels of information security measures,and commenced activities to visualize evaluations.
In this way, we are continuing to conduct activities to enhance information security throughout
the entire supply chain.

218

Meiden Group CSRHome Sustainability

Corporate Governance ComplianceCorporate GovernanceCompliance
PolicyCompliance Policy

The Meiden Group fully understands domestic and overseas laws, including those relating tocorporate activities, customs, and all other social norms and spirit. The Meiden Group complies
with and respects these, and has developed the Meiden Group Code of Conduct to constantly
maintain a high standard of corporate ethics and social decency.
In accordance with this code of conduct, the Meiden Group aims to sincerely engage inactivities to live up to the trust of customers and society. Directors, executive officers, andgeneral managers of Meidensha and each Group company play a central role in promoting
compliance in each of their workplaces, in accordance with the Meiden Group Compliance
Promotion Rules.
SystemCompliance System

Meidensha has enhanced and constructed a compliance promotion framework that is an
important pillar of risk management, by integrating the Legal Affairs Division and the Enterprise
Risk Management Division into the Governance Headquarters in April 2022. The Legal Affairs
Division is the office responsible for the Compliance Committee, which is chaired by themember responsible for compliance, and convenes twice each year to determine complianceaction plans.
Based on these action plans, staff business units conduct compliance education for all Group
companies, led by the Legal Affairs Division, and work to deal with matters relating tocompliance notices, and resolve the various legal issues that may arise. These compliancerelated activities are reported to the standing Compliance Committee, and the content isreported to management.
Each workplace has a compliance manager, who reports matters being discussed at theworkplace and issues that have been discovered that relate to compliance, to the Legal Affairs
Division. The Compliance Committee shares information reported to it with compliancemanagers through compliance training, etc. This strengthens communication and reporting
systems.
Each Japanese company in the Meiden Group has a similar compliance committee andcompliance manager system to Meidensha. In fiscal 2021, the Meidensha Legal Affairs Division
re-assured each company to be thorough in compliance with the Antimonopoly Act, andconducted focused education relating to preventing corruption. We also started conducting asurvey of overseas Group companies and promoted ongoing implementation of internal control
219

Meiden Group CSR

initiatives such as promoting understanding of on-the-ground conditions of compliancesystems at each company.

Compliance System

Whistleblower System on Compliance

The Meiden Group has a whistleblower system for compliance. This is to prevent illegal actions
and misconduct and to solve problems as early as possible.
The internal whistleblower system includes the internal reporting system (Compliance Hotline)
dealing with a broad range of compliance issues including breaches of laws such as the
Antimonopoly Act, breaches of general anti-corruption regulations such as those dealing withbribery, other breaches of internal or external rules, and labor problems and the Harassment
Consultation Hotline, which is specifically designed to deal with harassment. The External
Hotline is a hotline operated by outside lawyers for early detection and rectification of unlawful
acts, etc. Furthermore, we have also established a supplier-specific whistleblower hotline infiscal 2018.
In fiscal 2021, we proceeded with revision and reform of regulations and systems, such as
making our whistleblower systems clearer and further strengthening protection ofwhistleblowers, in line with the enforcement of the amended Whistleblower Protection Act.
The external hotline (Compliance Hotline) enables employees to lodge reports using a
dedicated email address. The external hotline is handled by a law firm, and may be used by
employees of the Meiden Group (including retirees), temporary staff and subcontractors, andsuppliers.
These internal and external systems can both be used anonymously, and accept a wide rangeof reports.
The Legal Affairs Division works with relevant departments to investigate reports that arebrought to the external hotline and, if necessary, consults with lawyers to deal with them. We
are working to increase the dependability of management of information, such as the names ofwhistleblowers, and the whistleblower system as a whole, in accordance with national guidelines,
to ensure that whistleblowers are not disadvantaged by using the system.
In fiscal 2021, the Meiden Group received 52 reports and consultations, of which we thoroughly
confirmed which cases required a response and dealt with them accordingly. The Audit
Department conducts internal audits of the operation of the system.

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System to Respond to Individual Incidents

Managers who become aware of illegal or inappropriate activities are obligated to promptly
report them to their immediate superior. The system ensures that reports reach responsible
officers. Compliance breaches that are detected internally, such as illegal or inappropriate
activities, are investigated and handled under the direction of the head of the business unit,
who serves as a member of the Compliance Committee. We work to introduce cases that cause
compliance problems or which may do so through compliance training and to thus prevent
their reoccurrence as appropriate.

Initiatives to Avoid Infringement of Human Rights
Harassment Prevention System

Harassment is one of the compliance issues regarding which consultation is most frequently
sought, so we established the Harassment Prevention Committee to create a system that is
specifically designed to handle harassment issues, and we are working to centralize handling ofconfidential information and responses as well as enhance activities to promote understanding.
When a report of harassment is made, responses are required that are considerate of personal
relationships, and particularly those of the reporter, so we created a system to avoid
infringement of human rights by establishing a hotline that is specifically designed to deal withharassment issues and creating an environment that is conducive to talking about issues. In
addition, we are conducting activities to educate employees including managers, about Anger
Management as a measure against harassment.
Initiatives

Compliance Training

The Meiden Group conducts compliance training every year, inorder to maintain and improve awareness of compliance andinternal control systems while collecting opinions fromworkplaces. In fiscal 2021, we conducted individual training
online for locations around Japan, and there were a total 1,711
participants in the Group. At this training, in addition to making
reports concerning the status of compliance activities toCompliance Training
employees of each company in the Meiden Group, such ascompliance managers, we conducted education concerning the
Antimonopoly Act, the Subcontract Act, harassment, andenvironmental laws.
We also conducted individual presentations on compliance aspart of training for each level of new staff, leaders, and managers
of each Group company.
Human rights education for officers and employees
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Policy, System, and Initiatives

Anti-corruption Measures

Meidensha stipulated “absolute prohibitions” through a resolution of the Board of Directors'
Meeting on December 26, 2012. These “absolute prohibitions” prohibit profit-sharing withnational public servants, correspondence with competitors, etc., such as bid-rigging or cartel
behavior, collection of confidential information such as target prices and job prices from
customers, etc. “Absolute prohibitions” are thoroughly enforced within the Group.
In 2016, we developed the Meiden Group Bribery Prevention Policy in order to prevent
corruption, which includes bribery. The principles were revised in 2020. They have been
disseminated throughout the Group once more in two volumes – the Meiden Group Bribery
Prevention Policy and the Guidelines for the Meiden Group Bribery Prevention Policy.

Group Corporate Code of Conduct toward Globalization

The Meiden Group revised the Meiden Group Corporate Code of Conduct in 2022 inconsideration of sustainability management, and is increasing awareness of employees withregard to compliance with laws and other social norms and contributing to the realization of asustainable society. We are educating Meiden Group employees around the world by compilingthis code of conduct in addition to the corporate philosophy system and guidance into abooklet in three languages (Japanese, English and Chinese).
Furthermore, we are broadly expanding our compliance education activities such as byreleasing the Meiden Group Bribery Prevention Policy and the Guidelines for the Meiden Group
Bribery Prevention Policy in the same three languages. These regulations and policies areavailable on the Group-common web portal.

Meiden Group Corporate Code of Conduct
Bribery Prevention Policy（PDF:440KB）

Officer Training

Meidensha conducts training for officers of the executive officer level or above, with a focus oncompliance with the Antimonopoly Act. In fiscal 2021, we conducted training administered byoutside instructors with the theme of “preventing corruption in Japan.”

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Policy and Initiatives

Tax

Tax Policy

The Meiden Group is aware that ensuring transparency of tax matters and payment of tax is its
corporate social responsibility, and understands and complies with the principles of the taxation
law of each country and region in which it conducts its global business activities. We contributeto the prosperity of each country and region by paying tax appropriately according to theapplication of a preferential tax system that avoids double taxation through normal procedures
and complies with the aims of each system.
Furthermore, our policy is to refuse to engage in international tax avoidance, such as bycomplying with the OECD ※Transfer Pricing Guidelines for Multinational Enterprises and Tax
Administrations and refusing to use tax havens according to business circumstances.
Going forward, we will work to build friendly and healthful relationships with tax agencies
through timely and appropriate provision of information and responding sincerely in the eventof advance rulings and tax audits.
* OECD：Organization for Economic Co-operation and Development
Results Data

Compliance Data

FY2021 Breaches of the Law, etc., in Japan and Overseas (Whole Meiden Group)

Incidents concerning Japanese laws, etc., such as an order to cease and desist from the Fair
Trade Commission, etc.: NA
Incidents concerning foreign laws, etc., such as exposure of pricing cartels, etc.: NA
Incidents concerning corruption, such as acceptance of bribes: NA

Consultations and Reports Through the Compliance Hotline

Number of Consultations and Reports Received Through the Compliance Hotline (Only Meidensha*)
Unit
FY2019 FY2020 FY2021
Number of consultations and
Cases
47
53
52
reports* Includes incidents at subsidiaries referred through the Meidensha Hotline.

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Meiden Group CSRCompliance-Related Training
Times Compliance Training Conducted and Number of Participants (Entire Meiden Group)
Unit
FY2019 FY2020 FY2021
Compliance Training
Times
30
11
11
Participants ―
1,338
1,711
Education by New staff
Participants ―
213
275
level
education(compliance110110presentations) Leader training Participants ―New manager Participants ―90
92
training level 1
Training for overseas
Participants ―1010management candidates(compliance presentations)* Number of Participants since fiscal 2020 is shown. was recorded from fiscal 2020.

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Meiden Group CSRHome Sustainability

Corporate Governance Dialogues with Shareholders and Investors

Corporate GovernanceDialogues with Shareholders and Investors
Basic Approach and IR System

When any shareholders wish to have a dialogue with the Company that will contribute tomedium to long-term improvement of the Company’s corporate value, it is Meidensha’s policythat the Company’s management conducts the dialogue to the extent possible.
A system is in place where a Director is placed in charge of IR matters and an IR-specialist
department conducts activities to enhance constructive dialogue with shareholders, including
institutional investors and strengthens external communication. These activities are regularly
reported to and discussed by the Board of Directors.
Initiatives

Results Briefings

We hold results briefings twice a year in May and October. In fiscal 2021, we distributed a videoof the President’s results briefing to analysts and institutional investors on the day of thepresentation and conducted teleconferences for question-and-answer sessions the next
business day, instead of holding in-person briefings, in order to prevent the spread of Novel
Coronavirus disease (COVID-19).

ESG Briefing

We held our first ESG briefing in November 2021. Our first briefing was titled “Initiatives tobecome a sustainability partner,” and broadly introduced our vision and initiatives relating to
ESG, as well as our newly established non-financial indicators, etc. We are pleased that 68
analysts and institutional investors participated. It was an opportunity to deepen understandingof Meidensha’s ESG vision and initiatives through Q&A sessions with President Miida.

Individual Business Briefings (Small Meetings)

Since fiscal 2018, we have held small meetings once a year. We set a different business theme
each year, and create an opportunity to better understand the Company’s business byconducting briefings and Q&A by responsible officers.
At the small meeting held in January 2022, we conducted a briefing by President Miida with the225

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theme of “strategy and outlook of the Field Engineering Business.” The meeting was attended
by 10 analysts.

Main IR Activities in Fiscal 2021

Individual Sessions
NumberDomestic Investors
127
Overseas Investors
31
Total
158
The materials for the results briefings are available for viewing. Please visit “Fact Sheet for
Account Settlement Briefing Session” under “Investors” on the Corporate website.

Opinions of Analysts and Institutional Investors

We publish a quarterly IR report, which includes the opinions and requests given at results
briefings and individual interviews, and this is reported to executive officers and directors. The
main opinions provided by analysts and institutional investors in fiscal 2021 are as follows.
Impact of increase in cost of materials, parts, and logistics, and impact of geopolitical risks
Positive situation and sustainability of the Water Infrastructure Business
View of the future outlook and capital investment of the EV BusinessMeasures for improved profitability of overseas businesses and a timeline for achievement
Policies relating to cross-shareholdings and anti-takeover measures
Going forward, we will ensure even fuller disclosure of information through results briefings,
individual IR, conferences, the website, and this report, etc., and continue to engage in dialog
with shareholders and investors.

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Meiden Group CSRHome Sustainability

Corresponding to COVID-19 infection

Corresponding to COVID-19 infection

We express our deepest sympathy to all those who have been affected by COVID-19. We would
also like to express our deepest respect and heartfelt gratitude to all those involved, including
the medical community and government agencies, who are working on the front lines toprevent the spread of the disease around the world.
The Meiden Group places the highest priority on the health and safety of our employees, theirfamilies, local residents, customers and our business partners, and is implementing infectious
disease countermeasures based on government policy. We will also strive to provide products
and services that support new working styles and lifestyles.
PolicyThe Meiden Group Policy on Countermeasures Against COVID-19
Aiming at the transition to “new normal” that balances infection prevention and economic
activities, we will continue to contribute to society by maintaining the health of our employees
and enhancing corporate value, in order to provide safety and joy to our customers andirreplaceable days for people beyond.
1. Towards the establishment of a style in line with new normal
In addition to COVID-19 measures, selection of work styles that increase efficiency for eachsector by considering efficiency
Construction of offices and production lines that avoids three Cs (Closed spaces, Crowded
places and Close-contact settings)
Promotion of environmental improvements for new work styles
2. Improving the “Ability to Connect” and “Ability to Communicate” in Our Way
In addition to in-person communication, promoting remote business negotiations andmeetings to increase productivity
Create new business opportunities by utilizing the time created by reduced travel

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Initiatives

Initiatives to Business Continuity

Corresponding to Production, Services, and Headquarters Functions

Amidst declared states of emergency and lockdowns conditions, we have continued our efforts
to give full consideration to the health and safety of our employees in accordance with thedirections and requirements of government in each country. At each of our locations, we utilize
remote work from home, and strive to meet the new needs of our customers, such as: For
operations such as production, plant construction, maintenance and service that require
employees to come to the work site, we promoted construction work thoroughly implementing
infection control measures in accordance with domestic and international standards, conducted
remote technical supports and safety patrols, and conducted pre-shipment product inspections
remotely, which used to require clients to come to our factory.

Construction progress with Remote pre-shipment
infection control measures product inspectionin place

Management of physicalcondition of workers
entering the site
(temperature check)

Initiatives to Corresponding Rapidly to Changes in Client Needs
May 24, 2022

Achievement of non-contact, hands-on safety education through development of
Metaverse hands-on safety education
September 29, 2021
Centralized management of industrial safety information via the cloud: Provisionof the subscription-basis safety information portal site
May 19, 2021
Commencement of Research and Development of a Real-Time Sewerage
Monitoring System to Realize a Society Adapted to Infectious Diseases: Adopted
by MLIT as applied research in fiscal 2021(Only available in japanese)
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March 9, 2021
Meiden System Solutions starts operation of Japan’s first online bidding system
at wholesale flower market in Osaka amid coronavirus pandemic
February 25, 2021
Online Seminar: Third Meiden Group Safety Initiative (Measures to Control the
COVID-19 infection)(Only available in japanese)
January 21, 2021
Commenced Sales of VR Safety Experiential Training Content on a Subscription
Basis(Only available in japanese)
November 4, 2020
An approach to preventing novel coronavirus infections Free-address seatreservation system introduced to Meiden offices

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Meiden Group CSRHome Sustainability

Evaluations from External Bodies

Sustainability

Evaluations from External Bodies
Status of incorporation of the ESG Index* (as of September 2022)* ESG is an abbreviation of “environment,” “social,” and “governance.” Consideration is given toenvironmental and social factors, which are important elements to determine whether to makean investment, in addition to financial factors.

S&P/JPX Carbon Efficient Index

The S&P/JPX Carbon Efficient Index is an environmental index that was developed by S&P Dow
Jones Indices LLC. It gives weight to companies with high carbon efficiency and that fully
disclose carbon emissions. The S&P/JPX Carbon Efficient Index also serves as an ESG index forJapanese companies that are GPIF investment targets. Meidensha was added to the index in2018.

Sompo Sustainability Index

Meidensha has been selected for the Sompo Sustainability Index, which was instituted by
Sompo Asset Management Co., Ltd. in August 2012. Sompo Sustainable Investment is a
responsible investment product for pension funds and institutional investors that invests
broadly in companies with a high ESG (environment/social/ governance) rating.
Each year, revision of companies listed in the index is conducted based on the results of asurvey conducted by Sompo Risk Management Inc. Meidensha’s ESG initiatives have beenhighly rated by investigation, leading us to be continuously selected by index since fiscal 2016.

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FTSE Blossom Japan Index

The FTSE Blossom Japan Index is designed to measure the performance of companies thathave taken exceptional action on environmental, social and governance issues, and is selected
by FTSE Russell, a global developer and manager of equity bond and other indices. The index
consists of stocks that meet various evaluation criteria related to the environment, society, andgovernance. These criteria are used to select investments by investors who place importanceon corporate social responsibility and sustainability, and are reviewed based on the results ofannual evaluations.

FTSE Blossom Japan Sector Relative Index

The FTSE Blossom Japan Sector Relative Index is an index that reflects the performance ofJapanese companies with relatively higher environmental, social and governance (ESG)
responses in each sector and is designed to be sector-neutral. This index has been highly rated
for its stance relating to business risks and opportunities relating to climate change focusing
on ESG evaluation, and its ESG metrics are employed by the Government Pension Investment
Fund (GPIF). Meidensha has been part of this index since March 2022.

Other Major Evaluations from Outside the Company
CDP (Climate Change and Water Security)

CDP is an international NGO that operates a global information disclosure system to manage
the environmental impact of investors, companies, cities, countries, and regions. It investigates,
evaluates, and discloses information about environmental initiatives on behalf of institutional
investors. Meidensha received a rating of B for climate change and B for water security from
CDP in 2021.

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MSCI ESG Ratings

The MSCI ESG Ratings are ESG ratings by the US-based MSCI. MSCI analyzes companies’ ESG
risk management capabilities and gives one of 7 ratings from AAA to CCC. In 2022, Meidensha
received a rating of A in the MSCI ESG Ratings.

Science Based Targets Initiative (SBTi)

In 2021, Meidensha upwardly revised its 2030 greenhouse gas emissions reduction target. Thistarget received SBT certification as it was recognized by the Science Based Targets (SBT)
initiative as being consistent with the Paris Agreement.

Establishment of the Second Meiden Environmental Vision as a medium-to-longterm environmental goal

2022 CSR Company Ranking (Toyo Keizai Inc.)

Released by Toyo Keizai Inc., the CSR Company Ranking generally evaluates and ranks CSR(corporate social responsibility) and Finance by evaluating utilization of human resources,
environment, corporate governance, social responsibility, profitability, safety, and scale, basedon responses to an annual survey given to companies. Meidensha was ranked 44th out of 113
companies in the electrical machinery industry in the 16th CSR Company Ranking (in 2022).

The 5th Nikkei Smart Work Management Survey

The Smart Work Management Survey, conducted by Nikkei Inc. from 2017, selects leading
companies who are challenging the productivity revolution through work style reform. The
survey was conducted on listed companies nationwide and leading unlisted companies, andconsists of three elements: the realization of diverse and flexible working systems, a system fornew businesses, and the ability to develop markets. They define efforts to maximizeorganizational performance as "smart work management" and evaluate them in five stages,
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Meiden Group CSR

taking into account management foundations such as corporate governance. In the fifth survey,
Meidensha was recognized as a 3.5-star company.

The 3rd Nikkei SDGs Management Survey

The SDGs Management Survey comprises questions relating to the four categories of “SDGs
strategy and economic value,” “social value,” “environmental value,” and “governance.” In the
3rd survey, Meidensha was recognized as a 3.5-star company.

Eruboshi

In 2017, Meidensha received the highest level of Eruboshi mark (grade 3).
Eruboshi is a system under which certification is granted by the Minister of Health, Labour andWelfare to companies that have formulated and submitted action plans under the Act for the
Promotion of Women’s Participation in Working Life (Act for the Promotion of Women’sParticipation), that meet certain standards, and that have been exceptional in theirimplementation of initiatives. There are three levels of certification, and Meidensha has received
grade 3, which is the highest level as it is recognized as having met the required standards in all
five evaluation categories. Receiving Eruboshi certification also increases our rating forcomprehensive evaluation bidding systems, etc., of public enterprise.

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Action plan under the Act for the Promotion of Women’s Participation andPromotion of Diversity Management

Kurumin and Platinum Kurumin

In 2021, Meidensha was granted Kurumin and Platinum Kurumin certification by the Minister of
Health, Labour and Welfare (MHLW). The Kurumin certification is a system in which the Ministerof MHLW certifies companies that have formulated the Plan of Action for General Employers
based on the Act to Advance Measures to Support Next-Generation Child-Rearing and thatmeet certain standards, such as achieving the goals set in the action plan, as companies that
support child-rearing. Platinum Kurumin certification is a special certification system forcompanies that have been certified as Kurumin certification and have made efforts at a higher
level to become exceptional child-rearing support companies.

Health and Productivity Management Organization (White 500)

Meidensha has been certified as a "Health and Productivity Management Organization - White
500" by the Ministry of Economy, Trade and Industry (METI) for its excellent healthmanagement practices. The " Certified Health & Productivity Management Outstanding
Organizations Recognition Program - White 500" is a joint effort by METI and Nippon Kenko
Kaigi (Japan Health Council) to recognize large corporations, not limited to listed companies,that practice good health management in cooperation with insurers. Meidensha was certified
for the first time in 2021.

Health and Productivity Stock Selection
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Meiden Group CSR

Meidensha has been selected as the Health and Productivity Management Brand by the
Ministry of Economy, Trade and Industry (METI) and the Tokyo Stock Exchange (TSE) for listedcompanies with excellent health and productivity management. The "Health and Productivity
Management Brand" has been announced by METI and TSE since 2015 as a company thatstrategically and actively practices Health and Productivity Management from a management
perspective, considering employee health management. Meidensha was first selected in 2021.

Results of health management initiatives

DRIVEROBOT TYPE-i RBT-2020 Received the FY2021 Good Design Award andthe 2022 Red Dot Design Award

DRIVEROBOT TYPE-i RBT-2020, an automatic vehicle driving system, received the FY2021
Good Design Award (organized by the Japan Institute of Design Promotion) and the 2022 Red
Dot Award (organized by Design Zentrum Nordrhein Westfalen). Meidensha delivers automotive
testing equipment to automotive manufacturers, automotive parts manufacturers, etc., in Japanand overseas, and the DRIVEROBOT is a form of equipment that is used for development of
automobiles. For this drive robot, we have achieved a dramatic weight reduction, achieving a
total weight of 23.5 kg, and the development concept of relieving the burden on workers, suchas by allowing anyone to fit it, has been well-received.

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Editorial Policy

Sustainability

Editorial Policy
Editorial Policy

The Meiden Group informs its stakeholders of its attitude and initiatives relating to social
responsibility through the two media, which are Meidensha Report (print edition and web
edition) and the Meiden Group’s Sustainability (web edition).
The content of this website is determined after reporting to and consultation with the Board of
Directors. With regard to the content of the reports, we work to collect, analyze, and distributeinformation that meets our stakeholders’ expectations and is of interest to our stakeholders
through daily public relations and IR activities, interviews with each department.
Furthermore, the Meiden Group is conducting internal communication activities as part of theprocess of drafting reports in order to understand changes in the external environment andshare future issues and trends. In addition, we work to strategically promote future ESG
management by exchanging opinions based on the reports that have been created, and having
each department reflect on its own activities, taking into account outside perspectives.

Report Media

1 Meidensha Report print edition and web edition

A comprehensive collection of financial information concerning the Meiden Group andnonfinancial information such as initiatives that contribute to improving corporate value andmanagement strategies.

1. Booklet, PDF
Meidensha Report

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2 Meiden Group’s Sustainability Web Edition (this website)

A summarized introduction focusing on specific initiatives to tackle sustainability issues that we
consider important.

2. WEB edition

Reporting Period

This report mainly covers initiatives taken in fiscal 2021 (April 1, 2021 - March 31, 2022)
It also includes some information from prior to fiscal 2020 and until July 2022

Subject Organization

The report mainly covers initiatives of Meidensha Corporation and its affiliated companies.
Human resources data applies to affiliated companies in Japan, while environmental reporting
data applies to Meidensha and its 40 major affiliated companies (21 in Japan and 19 overseas).

Publication

Publication of this report: September 2022
Next scheduled publication: September 2023

Guidelines Used as References

IFRS Foundation International Integrated Reporting Framework
IFRS Foundation SASB Standards
Ministry of Economy, Trade and Industry “Guidance for Collaborative Value Creation”
GRI “Sustainability Reporting Standards”* Although this report is based on the reporting principles, the content does not necessarily
conform to them.
Ministry of the Environment “Environmental Reporting Guidelines (Fiscal Year 2018 Version)”
237

Meiden Group CSRInquiries about This Report

Meidensha Corporation
Public & Investor Relations Section, Corporate Communication Promotion Division
ThinkPark Tower, 2-1-1, Osaki, Shinagawa-ku, Tokyo
141-6029 Japan
TEL: 81-3-6420-8100

Disclaimer

In addition to past and current facts about the Meiden Group, this report contains forecasts forthe future based on plans, outlooks and business policies and strategies in effect at the time of
publication. These forecasts are our assumptions and judgments as based on information
available at the time they were stated, and may differ from actual business activity results andevents in future owing to changes in conditions.

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Meiden Group CSRHome Sustainability

GRI Standards Content Index

GRI Standards Content Index
General Disclosures

Disclosure Title
References
GRI102：General Disclosures
Organizational profile
102-1 Name of the organization
Company Profile
102-2 Activities, brands, products, and services Products & Services
102-3 Location of headquarters
Company Profile
102-4 Location of operations
Company Profile
102-5 Ownership and legal form
Company Profile
102-6 Markets served
Products & Services
102-7 Scale of the organization
Company Profile
102-8 Information on employees and other
Labor Practices＞HR Data
workers102-9 Supply chain
Supply Chain Management
102- Significant changes to the organization Not applicable
10and its supply chain
102- Precautionary Principle or approach
Risk Management
11
Corresponding to COVID-19
Infection
102- The Meiden Group’s ESG Management＞ Sustainability Management ＞
12External Support Initiatives
External Support Initiatives
102- The Meiden Group’s ESG Management＞ Sustainability Management ＞
13
Group Membership Credentials
Group Membership Credentials
Strategy102- Statement from senior decision-maker
The President’s Commitment
14102- Key impacts, risks, and opportunities
The President’s Commitment
15
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Identification of Materialities
Medium-term Management Plan
Ethics and integrity
102- Values, principles, standards, and norms
16of behavior
102- Mechanisms for advice and concerns
17
about ethics
Governance102- Governance structure18102- Delegating authority
19102- Executive-level responsibility for20
economic, environmental, and social
topicsCorporate Philosophy
ComplianceCorporate GovernanceCorporate Governance
Sustainability Management
Environmental Management
Disclosure based on TCFD
Recommendations
Product Responsibility
Occupational Safety and HealthManagement

10221
10222
10223
10224
102-

Consulting stakeholders on economic,
environmental, and social topics
Composition of the highest governancebody and its committees
Chair of the highest governance body
Nominating and selecting the highest
governance body
Conflicts of interest
240

Health & Productivity
Management
Risk Management－
Corporate Governance
Board of Directors & Executive
Officers－－
Meiden Group CSR

25
10226

Role of highest governance body insetting purpose, values, and strategy

10227Collective knowledge of highest
governance body

10228
10229

10230
10231
10232
10233
10234
10235
10236
10237

Environmental Management
Climate Change
Corporate Governance
The Approach to SDGs

Corporate GovernanceEvaluating the highest governance body’s Environmental Management
performance
Climate Change
Corporate Governance
Identifying and managing economic,
The Approach to SDGs
environmental, and social impacts
Environmental Management
Climate Change
Effectiveness of risk management
processes
Review of economic, environmental, andsocial topics
Highest governance body’s role insustainability reporting
Communicating critical concerns

Risk Management
Risk Management
Sustainability Management
Sustainability Management
Compliance

Nature and total number of criticalconcerns
Remuneration policies－

Process for determining remuneration

Corporate Governance

Stakeholders’ involvement inremuneration－

Corporate Governance241

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10238Annual total compensation ratio

10239

Percentage increase in annual totalcompensation ratio

Reason foromission:Confidentiality
constraints
Reason foromission:Confidentiality
constraints

Stakeholder engagement
102- List of stakeholder groups
40
10241
10242
10243

Meiden Group Value Creation
Process
Environmental Communication
Labor Practices

Collective bargaining agreements
Identifying and selecting stakeholders
Approach to stakeholder engagement

Meiden Group Value Creation
Process
Corporate Governance＞
Dialogues with Shareholders
and Investors
Product Responsibility
Supply Chain Management
Human Rights
Labor Practices

10244

Community
Dialogues with Shareholders
and Investors
Labor Practices＞
Communication Revitalization
Initiatives

Key topics and concerns raised

Reporting practice102- Entities included in the consolidated
45
financial statements
102- Defining report content and topic
46
Boundaries－
Editorial Policy

242

Meiden Group CSR

10247
10248
10249
10250
10251
10252
10253
10254

10255
10256

List of material topics

Sustainability Management

Restatements of information

Not applicable

Changes in reporting

Not applicable

Reporting period

Editorial Policy

Date of most recent report

Editorial Policy

Reporting cycle

Editorial Policy

Contact point for questions regarding the Editorial Policy
reportClaims of reporting in accordance with
Editorial Policy
the GRI Standards* Although based on thereporting principle, this reporting
is not prepared following thecore option of the GRI
Sustainability ReportingStandards.
GRI content index
GRI Standards Content Index
External assurance

Third-Party Verification

Topic-specific Disclosures
Disclosure Title
Material Topics
200 series (Economic topics)
GRI 201: Economic Performance 2016
103-1 Explanation of the material topic and its
Boundary

243

References

Identification of Materialities
Promotion of Strategic
Environment Management
Meiden Group CSR

103-2 The management approach and its
components
103-3 Evaluation of the management approach
201-1 Direct economic value generated anddistributed
201-2 Financial implications and other risks andopportunities due to climate change

Identification of Materialities
Promotion of Strategic
Environment Management
Disclosure based on TCFD
Recommendations
Policies to Support Local
Communities
Company Profile
Environmental Management

Disclosure based on TCFD
Recommendations
201-3 Defined benefit plan obligations and other －retirement plans
201-4 Financial assistance received from
Not applicablegovernment
GRI 202: Market Presence 2016
103-1 Explanation of the material topic and its Community
Boundary103-2 The management approach and its
Community
components
103-3 Evaluation of the management approach －202-1 Ratios of standard entry level wage by －gender compared to local minimum wage
202-2 Proportion of senior management hired －from the local community
GRI 203: Indirect Economic Impacts 2016
103-1 Explanation of the material topic and its Identification of Materialities
Boundary
Community103-2 The management approach and its
Identification of Materialities
components
Community103-3 Evaluation of the management approach －244

Meiden Group CSR

203-1 Infrastructure investments and services
supported
203-2 Significant indirect economic impacts
GRI 204: Procurement Practices 2016
103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components

Community
Community
Identification of Materialities
Supply Chain Management
Identification of Materialities
Supply Chain Management

Compliance103-3 Evaluation of the management approach Promotion of Strategic
Environmental Management
204-1 Proportion of spending on local suppliers －GRI 205: Anti-corruption 2016
103-1 Explanation of the material topic and its Corporate Code of Conduct
Boundary
Sustainability Management
Identification of Materialities
ComplianceCorporate Code of Conduct
Identification of Materialities

103-2 The management approach and its
components

Compliance103-3 Evaluation of the management approach －205-1 Operations assessed for risks related to －corruption
205-2 Communication and training about anti- Compliancecorruption policies and procedures
205-3 Confirmed incidents of corruption and Not applicableactions taken
GRI 206: Anti-competitive Behavior 2016245

Meiden Group CSR

103-1 Explanation of the material topic and its
Boundary

Corporate Code of Conduct
Identification of Materialities
Compliance
Sustainability Management
Corporate Code of Conduct
Identification of Materialities

103-2 The management approach and its
components

Compliance103-3 Evaluation of the management approach －206-1 Legal actions for anti-competitive
Not applicablebehavior, anti-trust, and monopoly
practices
GRI 207：Tax 2019103-1 Explanation of the material topic and its －Boundary103-2 The management approach and its
Compliance＞Taxcomponents
103-3 Evaluation of the management approach －207-1 Approach to tax
Compliance＞Tax
207-2 Tax governance, control, and risk－
management
207-3 Stakeholder engagement and－management of concerns related to tax
207-4 Country-by-country reporting－
300 series (Environmental topics)
GRI 301: Materials 2016
103-1 Explanation of the material topic and its －Boundary103-2 The management approach and its
components
103-3 Evaluation of the management approach －246

Meiden Group CSR

301-1 Materials used by weight or volume

Overview of Environmental
Impacts by Our Business
Activities
301-2 Recycled input materials used－
301-3 Reclaimed products and their packaging －materials
GRI 302: Energy 2016
103-1 Explanation of the material topic and its Identification of Materialities
Boundary
Promotion of Strategic
Environment Management
Climate Change
Disclosure based on TCFD
recommendations
Identification of Materialities
Promotion of Strategic
Environment Management
Climate Change

103-2 The management approach and its
components

103-3 Evaluation of the management approach

Disclosure based on TCFD
recommendations
Identification of Materialities
Promotion of Strategic
Environment Management
Climate Change
Overview of Environmental
Impacts by Our Business
Activities
Environmental Impact Data
(Fiscal 2021) from the Four
Main Manufacturing Sites(Domestic Manufacturing Sites)－

302-1 Energy consumption within theorganization

302-2 Energy consumption outside of theorganization
247

Meiden Group CSR

302-3 Energy intensity
302-4 Reduction of energy consumption
302-5 Reductions in energy requirements ofproducts and services
GRI 303: Water and Effluents 2018
103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components
103-3 Evaluation of the management approach303-1 Interactions with water as a sharedresource

303-2 Management of water discharge-related
impacts
303-3 Water withdrawal

303-4 Water discharge
248

Climate Change
Climate Change
Product Initiatives (Examples of
Meiden Green Productregistered in FY2021)－
Promotion of Strategic
Environment Management
Environmental Management
Promotion of Strategic
Environment Managementt
Water Resources
Water Resources
Overview of Environmental
Impacts by Our Business
Activities
Environmental Impact Data
(FY2021) from the Four Main
Manufacturing Sites (Domestic
Manufacturing Sites)
Water Resources
Water Resources
Overview of Environmental
Impacts by Our Business
Activities
Environmental Impact Data
(FY2021) from the Four Main
Manufacturing Sites (Domestic
Manufacturing Sites)
Water Resources
Meiden Group CSROverview of Environmental
Impacts by Our Business
Activities

303-5 Water consumption
GRI 304: Biodiversity 2016
103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components

Environmental Impact Data
(FY2021) from the Four Main
Manufacturing Sites (Domestic
Manufacturing Sites)－
Promotion of Strategic
Environment Management
Biodiversity
Promotion of Strategic
Environment Management
Environmental Management

Biodiversity103-3 Evaluation of the management approach Promotion of Strategic
Environment Management304-1 Operational sites owned, leased, managed Biodiversity
in, or adjacent to, protected areas andareas of high biodiversity value outside
protected areas
304-2 Significant impacts of activities, products, Biodiversity
and services on biodiversity304-3 Habitats protected or restored
Biodiversity
304-4 IUCN Red List species and national
Biodiversity
conservation list species with habitats inareas affected by operations
GRI 305: Emissions 2016
103-1 Explanation of the material topic and its Identification of Materialities
Boundary
Promotion of Strategic
Environment Management
Climate Change
249

Meiden Group CSRDisclosure based on TCFD
recommendations
Identification of Materialities
Promotion of Strategic
Environment Management103-2 The management approach and its
components

103-3 Evaluation of the management approach305-1 Direct (Scope 1) GHG emissions

Environmental Management
Climate Change
Disclosure based on TCFD
recommendations
Promotion of Strategic
Environment Management
Climate Change
Disclosure based on TCFD
recommendations
Overview of Environmental
Impacts by Our Business
Activities

305-2 Energy indirect (Scope 2) GHG emissions

Environmental Impact Data
(FY2021) from the Four Main
Manufacturing Sites (Domestic
Manufacturing Sites)
Climate Change

305-3 Other indirect (Scope 3) GHG emissions

Disclosure based on TCFD
recommendations
Overview of Environmental
Impacts by Our Business
Activities
Environmental Impact Data
(FY2021) from the Four Main
Manufacturing Sites (Domestic
Manufacturing Sites)
Climate Change

250

Meiden Group CSR

305-4 GHG emissions intensity
305-5 Reduction of GHG emissions
305-6 Emissions of ozone-depleting substances(ODS)
305-7 Nitrogen oxides (NOX), sulfur oxides(SOX), and other significant air emissions

GRI 306: Waste 2020
103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components

103-3 Evaluation of the management approach
306-1 Water discharge by quality anddestination

251

Disclosure based on TCFD
recommendations
Climate Change
Climate Change
Climate Change
Prevention of Pollution andEffective Utilization of
Resources
Overview of Environmental
Impacts by Our Business
Activities
Environmental Impact Data
(FY2021) from the Four Main
Manufacturing Sites (Domestic
Manufacturing Sites)
Promotion of Strategic
Environment Management
Biodiversity
Promotion of Strategic
Environment Management
Environmental Management
Prevention of Pollution andEffective Utilization of
Resources
Promotion of Strategic
Environment Management
Prevention of Pollution andEffective Utilization of
Resources
Overview of Environmental
Impacts by Our Business
Activities
Meiden Group CSR

Environmental Impact Data
(FY2021) from the Four Main
Manufacturing Sites (Domestic
Manufacturing Sites)
Prevention of Pollution andEffective Utilization of
Resources
Prevention of Pollution andEffective Utilization of
Resources
Overview of Environmental
Impacts by Our Business
Activities

306-2 Waste by type and disposal method306-3 Significant spills

Environmental Impact Data
(FY2021) from the Four Main
Manufacturing Sites (Domestic
Manufacturing Sites)
Prevention of Pollution andEffective Utilization of
Resources
Overview of Environmental
Impacts by Our Business
Activities
Environmental Impact Data
(FY2021) from the Four Main
Manufacturing Sites (Domestic
Manufacturing Sites)
Prevention of Pollution andEffective Utilization of
Resources306-4 Transport of hazardous waste

306-5 Water bodies affected by water
discharges and/or runoff

Overview of Environmental
Impacts by Our Business
Activities
Environmental Impact Data
(FY2021) from the Four Main
Manufacturing Sites (Domestic
Manufacturing Sites)
252

Meiden Group CSRGRI 307: Environmental Compliance 2016
103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components

Promotion of Strategic
Environment Management
Promotion of Strategic
Environment Management

Environmental Management103-3 Evaluation of the management approach Environmental Management307-1 Non-compliance with environmental laws Not applicableand regulations
GRI 308: Supplier Environmental Assessment 2016
103-1 Explanation of the material topic and its Identification of Materialities
Boundary
Supply Chain Management103-2 The management approach and its
Identification of Materialities
components
Supply Chain Management103-3 Evaluation of the management approach Supply Chain Management308-1 New suppliers that were screened using Supply Chain Management
environmental criteria308-2 Negative environmental impacts in the
Climate Change
supply chain and actions taken
Supply Chain Management
400 series (Social topics)
GRI 401: Employment 2016
103-1 Explanation of the material topic and its Identification of Materialities
Boundary
Labor Practices
103-2 The management approach and its
Identification of Materialities
components
Labor Practices
103-3 Evaluation of the management approach Labor Practices
401-1 New employee hires and employee
Labor Practices
turnover253

Meiden Group CSR

401-2 Benefits provided to full-time employees Labor Practices
that are not provided to temporary or
part-time employees
401-3 Parental leave
Labor Practices
GRI 402: Labor/Management Relations 2016
103-1 Explanation of the material topic and its －Boundary103-2 The management approach and its
Labor Practices
components
103-3 Evaluation of the management approach －402-1 Minimum notice periods regarding－
operational changes
GRI 403: Occupational Health and Safety 2018
103-1 Explanation of the material topic and its Identification of Materialities
Boundary
Occupational Safety and Healthand Health Management103-2 The management approach and its
Identification of Materialities
components
Occupational Safety and Healthand Health Management103-3 Evaluation of the management approach Occupational Safety and Healthand Health Management403-1 Workers representation in formal joint
Occupational Safety and Healthmanagement–worker health and safety
and Health Management
committees
403-2 Types of injury and rates of injury,
Occupational Safety and Healthoccupational diseases, lost days, andand Health Management
absenteeism, and number of work-related
fatalities
403-3 Workers with high incidence or high risk Occupational Safety and Healthof diseases related to their occupationand Health Management403-4 Health and safety topics covered in
Occupational Safety and Healthformal agreements with trade unions
and Health Management
GRI 404: Training and Education 2016254

Meiden Group CSR

103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components
103-3 Evaluation of the management approach404-1 Average hours of training per year per
employee404-2 Programs for upgrading employee skills
and transition assistance programs

Identification of Materialities
Labor Practices
Identification of Materialities
Labor Practices
HR Development
HR Development
Product Responsibility＞
Developing Human Resources
to Support the Supply of Highquality Products
Labor Practices
HR Development
Labor Practices＞HR Data404-3 Percentage of employees receiving
regular performance and careerdevelopment reviews
GRI 405: Diversity and Equal Opportunity 2016
103-1 Explanation of the material topic and its Identification of Materialities
Boundary
Labor Practices
103-2 The management approach and its
Identification of Materialities
components
Labor Practices
103-3 Evaluation of the management approach Labor Practices
405-1 Diversity of governance bodies andLabor Practices
employees
405-2 Ratio of basic salary and remuneration of Labor Practices＞HR Data
women to men
GRI 406: Non-discrimination 2016
103-1 Explanation of the material topic and its －Boundary103-2 The management approach and its
Human Rights
components
255

Meiden Group CSR

103-3 Evaluation of the management approach －406-1 Incidents of discrimination and corrective －actions taken
GRI 407: Freedom of Association and Collective Bargaining 2016
103-1 Explanation of the material topic and its －Boundary103-2 The management approach and its
Human Rights
components
103-3 Evaluation of the management approach －407-1 Operations and suppliers in which the－right to freedom of association andcollective bargaining may be at risk
GRI 408: Child Labor 2016
103-1 Explanation of the material topic and its －Boundary103-2 The management approach and its
Supply Chain Management
components
Human Rights
103-3 Evaluation of the management approach －408-1 Operations and suppliers at significant －risk for incidents of child labor
GRI 409: Forced or Compulsory Labor 2016
103-1 Explanation of the material topic and its －Boundary103-2 The management approach and its
Supply Chain Management
components
Human Rights
103-3 Evaluation of the management approach －409-1 Operations and suppliers at significant －risk for incidents of forced or compulsory
labor
GRI 410: Security Practices 2016
103-1 Explanation of the material topic and its －Boundary256

Meiden Group CSR

103-2 The management approach and its
components
103-3 Evaluation of the management approach
410-1 Security personnel trained in humanrights policies or procedures
GRI 411: Rights of Indigenous Peoples 2016
103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components
103-3 Evaluation of the management approach411-1 Incidents of violations involving rights ofindigenous peoples
GRI 412: Human Rights Assessment 2016
103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components
103-3 Evaluation of the management approach412-1 Operations that have been subject tohuman rights reviews or impact
assessments
412-2 Employee training on human rights
policies or procedures
412-3 Significant investment agreements andcontracts that include human rights
clauses or that underwent human rights
screening
GRI 413: Local Communities 2016
103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components
257

－
－
－
－
－
－
Not applicable－
Human Rights－－
Human Rights－

Identification of Materialities
Community
Identification of Materialities

Meiden Group CSRCommunity
103-3 Evaluation of the management approach －413-1 Operations with local community
Biodiversity
engagement, impact assessments, andCommunity
development programs
413-2 Operations with significant actual and
Not applicable
potential negative impacts on local
communities
GRI 414: Supplier Social Assessment 2016
103-1 Explanation of the material topic and its Identification of Materialities
Boundary
Supply Chain Management103-2 The management approach and its
Identification of Materialities
components
Supply Chain Management103-3 Evaluation of the management approach Supply Chain Management414-1 New suppliers that were screened using Supply Chain Managementsocial criteria414-2 Negative social impacts in the supply
Supply Chain Management
chain and actions taken
GRI 415: Public Policy 2016
103-1 Explanation of the material topic and its －Boundary103-2 The management approach and its－
components
103-3 Evaluation of the management approach －415-1 Political contributions－
GRI 416: Customer Health and Safety 2016
103-1 Explanation of the material topic and its Identification of Materialities
Boundary
Product Responsibility
103-2 The management approach and its
Identification of Materialities
components
Product Responsibility
258

Meiden Group CSR

103-3 Evaluation of the management approach
416-1 Assessment of the health and safety
impacts of product and service
categories
416-2 Incidents of non-compliance concerning
the health and safety impacts ofproducts and services
GRI 417: Marketing and Labeling 2016
103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components
103-3 Evaluation of the management approach
417-1 Requirements for product and service
information and labeling417-2 Incidents of non-compliance concerning
product and service information andlabeling
417-3 Incidents of non-compliance concerningmarketing communications
GRI 418: Customer Privacy 2016
103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components
103-3 Evaluation of the management approach418-1 Substantiated complaints concerning
breaches of customer privacy and lossesof customer data
GRI 419: Socioeconomic Compliance 2016
103-1 Explanation of the material topic and its
Boundary
259

Product Responsibility
Product Initiatives(Management of chemical
substances in products)
Product Responsibility
Not applicable－－－－Not applicableNot applicable－－－Not applicable－

Meiden Group CSR

103-2 The management approach and its－
components
103-3 Evaluation of the management approach －419-1 Non-compliance with laws and regulations Not applicablein the social and economic area

260

Meiden Group CSRHome Sustainability

SASB Content Index

SASB Content Index

Major Sustainability Disclosure Topics & Accounting Metrics

Disclosure Accounting Category Unit ofTopicsMetrics
MeasureContent of Disclosure
Code FY2018
FY2019(2018/4/1~
2019/3/31)(2019/4/1~
2020/3/31)

FY2020(2020/4/1~
2021/3/31)

FY2021(2021/4/1~
2022/3/31)

Energy(1) Total
Quantative Gigajoules RT-EE- 885,122
895,217
918,457
970,661
Management energy(GJ)
130a.1 *Breakdown: *Breakdown: *Breakdown:*Breakdown:
consumption
Japan Japan Japan Japan 724,207GJ / 736,446GJ / 733,204GJ / 774,887GJ /overseas - overseas - overseas overseas 160,915GJ 158,771GJ 185,253GJ
195774GJ(2)Percentage
ー
ー
72.4
65.4
Percentage(%)*Breakdown:*Breakdown:
gridJapan - 70.5% / Japan - 61.7% /electricity
overseas - 80.1% overseas - 80.6%(out of (1))(3)
Percentage
ー
ー
2.０
9.0
Percentage(%)*Breakdown:*Breakdown:
renewable
Japan - 2.6% / Japan - 11.３% /overseas - 0.0% overseas - 0.0%
Hazardous Amountof Quantative Metrictons RT-EE- 64.2
22.9
51.3*Breakdown: 56.7*Breakdown:
Waste
hazardous(t)
150a.1 *Breakdown: *Breakdown: Traceamount TraceamountManagement waste
Traceamount Traceamount processing
processing
generated
processing processing volume-50.3t / volume-55.6t /volumevolumehighhigh
50.6t /
22.5t /
concentration concentration
high
high
processing
processing
concentration concentration volume-1.0t
volume-1.1t
processing processing
volumevolume-0.4t
13.6t
Percentage
Percentageーーーーofhazardous
(%)
waste
recyclued(Optional)
Percentage
ーーーーPercentage(%)
ofincinerated
hazardous
wasteforthepurposeofenergyrecovery(%)
SupplementalーMeidenshadiscontinuedmanufacturingequipmentusingPCBs
information
inSeptember1972.
AsdirectedbytheActonSpecialMeasuresconcerning
PromotionofProperTreatmentofPCBWastes(PCBSpecial
MeasuresAct),wearegraduallydisposingofdevicescontaining
PCBs(polychlorinatedbiphenyls),suchastransformersandcapacitorsthatwemanufacturedinthepastandstoredfornearly40years.

261

Meiden Group CSR

Total number Quantative Number RT-EE- ーof reportable
150a.2spillsAggregate
Kilogramsーquantity of(kg)
reportablespills(Ref) Totalー
Numbernumber of
spillsaccording tointernal
standards(Ref)ー
Kilograms
Aggregate(kg)
quantity of
spillsaccording tointernal
standards
Supplementalーー
information

ー

0

0

ー

ー

ー

ー

2

1

ー

ー

ー

ー

262

In fiscal
2020, there
were twoincidents
involvingexceedingvoluntarystandards for
wastewater,
but there
were noseriousviolations ofenvironmental
laws orregulations(including
water intake,wastewater,other waste,and harmful
chemicals).
The
discharged
substances
have been
recoveredandimprovement
measureshave been
implemented
for bothincidents thatbreached ourstandards.

In fiscal
2021, there
was a single
incident
involvingexceedingvoluntarystandards for
wastewater,
but there
were noseriousviolations ofenvironmental
laws orregulations(including
water intake,wastewater,other waste,and harmful
chemicals).
Improvement
measureshave been
implemented
for theincident thatbreached ourstandards.

Meiden Group CSRProduct
SafetyNumber of Quantative Number
recalls
Total units
recalled(Optional) (1)Percentage
of voluntary
recalls(Optional) (2)Percentage
of involuntary
recalls
Total amount Quantative Yenof monetarylosses as aresult of legal
proceedings
associatedwith productsafety

RT-EE- ー
250a.1
ー

ー

ー

ー

ー

ー

ー

ー

ー

ー

ー

ー

ー

ー

ー

RT-EE- ー
250a.2

ー

0

0

263

Meiden Group CSRProduct
Percentage Quantative Percentage RT-EE- ーーーー
Lifecycle of products
by revenue 410a.1
Management by revenue(%)
that contain
IEC 62474
declarable
substances
Percentage Quantative Percentage RT-EE- ーーーーof eligible
by revenue 410a.2
products, by(%)
revenue, that
meet
ENERGYSTAR®
criteria(If applicable)ーーーー
If theproducts
certified to aprevious
version of an
ENERGYSTAR®
standard,
disclose
information
including theversion of thestandard towhich its
products are
certified, abreakdown of
how many
products are
certified tothat versionof thestandard,
and its
timelines toachievecertification
to the mostcurrent
version of thestandard.
Revenue
Quantative Yen
RT-EE- ーーーー
from410a.3
renewableenergyrelated andenergyefficiencyrelated
products
Materials Description Discussion n/a
RT-EE- Meidensha has devised the Meiden Group Policy on Conflict
Sourcing of theand440a.1 Minerals Issue, and we added a section entitled “Responding tomanagement analysis
the conflict minerals issue” to the Meiden Group Supply Chainof risks
CSR Promotion Guidebook and clearly articulated our stance on
associatedthe matter in January 2014.
with the use
The Meiden Group considers ensuring supply chainof criticaltransparency and responsible procurement of materials andmaterials
components to be important issues, and we also ask our
264

Meiden Group CSR

Business
Ethics"Description Discussion n/aof policies andand practices analysis
forprevention of:(1) corruption
and briberyand (2) anticompetitive
behavior"

suppliers to support our Policy on Conflict Minerals Issue andcooperate with our initiatives aimed at procuring conflict-freeminerals.
< Policy on Conflict Minerals Issue >The Meiden Group promotes prohibition of the use of conflictminerals (tantalum, tin, gold, and tungsten) mined in the
Democratic Republic of the Congo and surrounding nations,which are used to fund armed groups that repeatedly engage
in human trafficking, forced labor, child labor, abuse, and otherinhumane acts.
The Meiden Group promotes responsible procurement ofminerals in order to fulfill our corporate social responsibility.
We conduct surveys of high-risk minerals as a due diligencemeasure. These surveys use the Conflict Minerals Reporting
Template (CMRT) produced by the Responsible Materials
Initiative (RMI).
In FY2021, we conducted a survey of materials that we hadpurchased from 380 major suppliers in the previous year andreceived responses from 360 companies (94%). If the surveys
reveal that minerals have been used to support conflicts, we ask
our business partners to take steps to avoid using the relevant
minerals, such as changing suppliers. Furthermore, if customers
identify risky refineries, we ask suppliers that use theserefineries to re-examine the status of their dealings.
At present, we have not confirmed any relationships with armed
groups, and we are conducting measures aimed at identifying
refinery operators and ensuring supply chain transparency. In
fiscal 2021, we conducted surveys using the Cobalt Reporting
Template (CRT).
RT-EE- Meidensha stipulated “absolute prohibitions” through a510a.1 resolution of the Board of Directors on December 26, 2012.
These “absolute prohibitions” prohibit profit-sharing withnational public servants, correspondence with competitors, etc.,
such as bid-rigging or cartel behavior, collection of confidential
information such as target prices and job prices from
customers, etc. “Absolute prohibitions” are thoroughly enforced
within the Group.
With regard to preventing corruption, including bribery, theMeiden Group Anti-Bribery Policy was established in 2016, andrevised in 2020. It has once more been disseminatedthroughout the Group in two volumes – the Meiden Group AntiBribery Policy and the Guidelines for the Meiden Group AntiBribery Policy.
With an eye to globalization, the Meiden Group revised the
Meiden Group Corporate Code of Conduct in 2022, inconsideration of sustainability management, and is increasingawareness of employees with regard to compliance with laws
and other social norms and contributing to the realization of asustainable society. We are educating Meiden Group employees
around the world by compiling this code of conduct in addition
to the corporate philosophy system and guidance into a booklet
in three languages (Japanese, English and Chinese).
Furthermore, we are broadly expanding our complianceeducation activities such as by releasing the Meiden Group
Anti-Bribery Policy and the Guidelines for the Meiden Group
Anti-Bribery Policy in the same three languages. Thesestandards and policies are available on the Group-common web
portal.
Meidensha conducts training for executive officers and above
for the main purpose of compliance with the Antimonopoly Act.
In fiscal 2021, a training session was conducted by outside
lecturer with the theme of “preventing corruption in Japan.”< Excerpt from the Meiden Group Anti-Bribery Policy >*1
265

Meiden Group CSR

Total amount Quantative Yenof monetarylosses as aresult of legal
proceedings
associatedwith bribery
or corruption
Total amount Quantative Yenof monetarylosses as aresult of legal
proceedings
associatedwith anticompetitive
behavior
regulations

1.Prohibition of bribery(1)All members of the Meiden Group shall not engage in any act ofBribery towards “Public Officials” of a country or region where
the Meiden Group conducts business or towards a Meiden
Group client (either a private business entity or individual) forthe purpose of obtaining or retaining improper advantages inbusiness activities.
(2)In this Policy, “Bribery” means taking an action (or providing an
inappropriate benefit), to an entity or an individual, which isillegal, unethical, or a breach of trust, or requesting an entity or
an individual to take such action (or to provide aninappropriate benefit), in return for, directly or indirectly,
offering, providing, promising, requesting, or accepting money,
gifts, business entertainment, donations, services, employment,
and/or any other advantage (including anything of value,
regardless of whether it is tangible or intangible) to/from such
entity or individual, with dishonest intent or purpose.
RT-EE- 0000510a.2

RT-EE- 0
510a.30

0

0

Activity Metrics
Accounting Category Unit ofMetrics
MeasureContent of Disclosure
Code FY2018 FY2019 FY2020

FY2021(2018/4/1~ (2019/4/1~ (2020/4/1~ (2021/4/1~
2019/3/31) 2020/3/31) 2021/3/31) 2022/3/31)

Production Quantative Number RT- ーunits forEEeach000.A
product
categoryーーー*1 Refer to Policy on Conflict Minerals Issue on our website for details of
Meiden Group Sustainable Procurement Guidelines.
*2 Refer to Meiden Group Anti-Bribery Policy on our website for detailsof the Meiden Group Anti-Bribery Policy.
*3 Number of employees represents the number as of March 31, each year.
266

Meiden Group CSR