CSRREPORT
2O22
16F TIXTOWER UENO, 4-8-1 Higashi-Ueno, Taito-ku, Tokyo 110-0015
Phone : 03-6895-7001

https://www.jcu-i.com/

Creating the Future throughSurface Treatment Technology
Explorer in Surface EngineeringTrends in Net Sales andOperating Income

Company Overview

Editorial Policy

The purpose of this report is to inform our stakeholders

JCU Corporation

Established

December 1957

FoundedApril 1968

Stated capital

1,255.33 million yen (as of September 30, 2022)

yearly(annual) turnoverNon-consolidated 12.7 billion yen Consolidated 24.2 billion yen(as of March 31, 2022)

foundation from an ESG (Environmental, Social, andHead office location

16F TIXTOWER UENO, 4-8-1 Higashi-Ueno, Taito-ku, Tokyo 110-0015

Governance) perspective” as one of the basic policies in its

Business
description

Manufacture and sale of surface treatment chemicals, surface

President

Masashi Kimura, President and CEO

million yen
23,1202017

Non-consolidated: 242, Consolidated: 548 (as of March 31, 2022)

22,319

7,072

6,948

treatment equipment, and related materials and equipment

Employees■Sales

24,866

2018■Operating profit
24,256
21,192

6,297

2019

(CSR).

6,799

2020

8,990

medium-term management plan (fiscal year ending March
31, 2022 - fiscal year ending March 31, 2024). Continuing

2021
（FY）

Chemicals Business

Equipment Business
Operating profit

our environmentally friendly products and describes ourOperating profit（million yen）

Apr. 1968: Established with investment from EBARA CORPORATION, Udylite Corporation of the U.S., and others
Manufacture and sale of chemicals and equipment for automotive parts

Sept. 2021: Chooses “Prime Market”

Apr. 2010: Merged with EBARA Densanʼs Printed Circuit Division by consolidation takeover

Sept. 2003: Becomes independent through MBO
Jun. 2000: Began sales of via filling chemicals

comments and interviews from our employees.

Water ………………………………………………… 14

to grow sustainably,” and all of our group executives andWastewater and Waste…………………………… 15

employees will continue to work together to achieve thisfrom FY2022 (April 2022 to March 2023).

Shareholders and Investors ……………………… 18

2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
1981
1980
1979
1978
1977
1976
1975
1974
1973
1972
1971
1970
1969

◆ Consulted guidelines

Compliance…………………………………………… 28* Please visit the following page to download our CSR Report.

https://www.jcu-i.com/sustainability/download/（Blue letters indicate in-house factories）

November 2022

◆ For inquiries about this report,

please contact:

GOVERNANCE

China, Taiwan, Korea,
Thailand, Vietnam, Mexico◆ Date published

Risk Management …………………………………… 30

SOCIAL

the GRI guideline comparison table.

Indonesia

Corporate Governance …………………………… 25
CSR Management …………………………………… 26* Please refer to our company website for

Local production plants

GOVERNANCE

Japan Standards Association ISO26000 2010
Guidance on social responsibility, 1st Edition

Vietnam

Employees …………………………………………… 21

GRI Sustainability Reporting Standard 2016

https://www.jcu-i.com/sustainability/guideline/

Thai
land

Community …………………………………………… 19

ENVIRONMENT

to refer to JCU Co., Ltd.

India

Our Customers ……………………………………… 16
Business Partners …………………………………… 18

refer to the entire Group, and “JCU” or “our company”（FY ）SOCIALto March 2022), but also includes some information

In this report, we use “JCU Group” or “our Group” toMexicoEnergy ………………………………………………… 12

Our goal is to become a “global company that continues

The JCU Group

July 1983: Began sales of chemicals for printed wiring boards

TaiwanENVIRONMENT
Raw Materials ……………………………………… 11◆ Scope of calculations

Japan

Friendly Products …………………………………… 8

SPECIAL FEATURE

Dec. 2005: Listed on the 2nd Section of the Tokyo Stock Exchange

HuBei
ShenzhenDevelopment of Environmentally

JCUʼs CSR in concrete terms. In addition, to provide many

This report is mainly focused on FY2021 (April 2021

USA

SPECIAL FEATURE

Environmental Management …………………… 10◆ Period covered

Mar. 2007: Listed on the 1st Section of the Tokyo Stock Exchange

Korea
ShanghaiBusiness Strategy and Sustainability …………… 6

goal.

Oct. 2012: Company renamed “JCU”

JCU Global Network

BUSINESS SEGMENT

business (Creating Shared Value: CSV), and introduces“voices from the field,” we have included testimonials,
Listed Date

TOP MESSAGE ……………………………………… 4

from the previous year, the CSR Report 2022 features
efforts to contribute to solving social issues through our

OtherCompany Overview/Editorial Policy …………… 2

BUSINESS SEGMENT（million yen）

JCU Group envisions its corporate social responsibility
The JCU Group has included “building a management

History of JCU
Salesof the kinds of initiatives we are taking based on how the

COMPANY PROFILE / TOP MESSAGE

Trade Name

CONTENTS

Corporate Planning Department, Corporate Strategy
Office, JCU Corporation
E-mail : kikaku@jcu-i.com
TEL : 03 - 6895 - 7004

02

03

TOP MESSAGE
In re cent years , the glo bal situatio n has b e enFirst of all, in the domain of “Environment,” we engage

Office has adopted the “Sales Force Development Activity

charac terize d not only by p roblems such as thein ongoing efforts to reduce greenhouse gas emissions

Plan Progress Management Sheet” to raise the baseline oflongstanding issue of environmental conservation, but

to the greatest extent possible. Large format solar panels

necessary employee skills. Another key issue is creating aalso by many unpredictable events, such as supply

have been installed on the roof of our Hubei Plant inwork environment in which women can play a more active

shortages due to conflicts and the COVID-19 outbreak.

China (Xiantao, Hubei Province) where operations beganrole. In addition to outside directors, JCU elected one new

It is not difficult to imagine that challenges for corporate

in FY2020, and they currently generate approximately

female executive officer in April 2022. We are committed

management will continue to intensify going forward.

40% of the plantʼs maximum electricity consumption.

to create a robust system where diversity is respected,

In order to fulfill our responsibilities as a company andIn Japan, we plan to install additional solar panels at

and incorporating womenʼs opinions into management is acontinue to grow sustainably in this unstable environment,

the Niigata Plant (Joetsu City, Niigata Prefecture) by the

key part of this.

end of FY2022 which will provide approximately 60% of
the electricity used at the facility. In addition, businesschange - rel ated information on the four themessocial responsibilities in all of the countries we operate

sites are replacing their air conditioners, lighting, andrecommended in the TCFD recommendations forin. Although the business environment surrounding ourother equipment with energy-efficient models to reduce

FY2022 (governance, strategy, risk management, andcompany is changing dramatically along with changes intheir electricity consumption. Our development divisionindicators and targets as they relate to climate change

society, our vision of the JCU Group as a “global company

is making steady progress in their development ofrisks and opportunities). In addition, we have preparedthat continues to grow sustainably” remains unchanged.

environmentally conscious products because we believe

skills matrices of directors, and disclosed these in our

In addition to contributing to the SDGs to realize thisthat environmentally friendly products will be the driving

corporate governance report. We will further improvegoal, we continue to focus on “building a management

force in our markets going forward.

management transparency through these disclosures of

A global company that continues to grow sustainably
Global Company

A company that links its business to ESG and SDGs

A company that is able to survive in any country.

◆The products we sell meet the needs of the times.

◆We are able to respond to changes in social conditions (bypaying attention to social and environmental issues).

◆We are accepted by local communities and society (based◆We offer products that can be sold anywhere in the world,

and we are accepted and needed.

◆We understand the differences in culture and attitudes of

the countries and regions we operate in.

◆We◆All employees are knowledgeable of corporate governance◆We

and are conscious of the issues.

coexist with the countries and regions where we dobusiness and contribute to their economic development.
have a diverse workforce which includes foreign
nationals, and understand and accept people of different
cultures and temperaments.

◆We are able to provide products of the same quality and－In order to become a “global company that continues to grow sustainably”－[1] Create a corporate system that gives us a powerful competitive edge in the surface treatment industry.

[2] Quickly lock on to our societiesʼ needs, work on product development, and contribute to solving social problems.
[3] Enhance human resource development so that all employees are able to become members of a global company.

in “building a management foundation from an ESG

improvements and carry out measures as a company

perspective.” Specifically, we have established a short-termbased on these actions.

overseas training program in FY2021. The program is

The JCU Group values our connections with all of you,mainly for younger employees, and our expectation is thatand will continue to grow sustainably and strive to become

through assignments to a short-term work experience ata truly global company with gratitude and the spirit ofan overseas subsidiary, they will grow into talents whocherishing encounters as if they were “once in a lifetime.”

are able to think from a global perspective. In addition,

November 2022 President and CEO

the R&D Center employs skills matrices to develop career
paths that enable the right person to be in the right place;right for both the individual and the company. The Sales

Medium-Term Corporate Plan and Basic Policy
Strengthening our core businesses－ Next 50 Innovation 2nd －Building a management foundationfrom an ESG perspective
Priorities

Marketing, development, and sales strategies

Priorities

Human Resource Development

Carry out concerted marketing activities, formulate
development and sales strategies based on information
we obtain, and strengthen our core businesses throughinter-group collaboration.
Our core businesses: Via filling, POP*, and equipment

Build a management foundation that is able to work withthe expansion of global operations and changes in theenvironment surrounding the company.
To this end, we will give top priority to human resource
development and actively promote management from an
ESG perspective.

[4] Instill our corporate philosophy and management policies throughout the company, and enhance our corporate governance.

GOVERNANCE

services of the same level in any country or region, and share
a common corporate philosophy.

to strengthen our governance, we will continue to make

SOCIALon our contributions to employment equality, regional
revitalization, and economic development).

the appropriateness of director appointments. In order

ENVIRONMENT

A company that continues togrow sustainably

Next, in the “Social” domain, we are focusing on
human resource development, which is our top priority

SPECIAL FEATURE

foundation from an ESG perspective,” one of the basic

Finally, under “Governance,” we disclosed climate

BUSINESS SEGMENT

we must not only pursue our own profits, but al somanage our business so that we are able to fulfill ourpolicies of our Medium-Term Corporate Plan.

Our Visionperspective” aiming to become a truly global company

COMPANY PROFILE / TOP MESSAGE

Steadily “building a management foundation from an ESG*POP：Plating On Plastic

04

05

BUSINESS SEGMENT
Electronics Sector

Since the companyʼs founding in April 1968,
the JCU Group has supported the growth of the automotive, electronics,
and other industries with a focus on providing a variety of surface treatment technologies thatgrew out of decorative and rust-proof plating technologies.
Our long-term goal is to become a “global company that continues to grow sustainably,”a company that manages its business in a way that links its operations to ESG and SDGs,
and a company that is able to survive in any country.
As a comprehensive manufacturer of surface treatment technologies,
we are committed to continue to work tirelessly to meet the diverse demands of our customers.

sustainable growth, we will establish a global sales

development, manufacture and sale of surface treatment

strategy and carry out concerted and efficient sales

chemicals, and the sale of related materials for theactivities. In terms of production, in addition to ourJapanese and international markets. Our R&D strategies

mother plant in Japan, we operate our own production

for our chemical s business consist of “R&D that isplants in five countries overseas, and have establishedconscious of the environment, cost, and health” anda system that ensures a stable supply of high-quality“R&D that outperforms our competitors.” We have been

products globally. While providing the same quality

expanding international sales with a focus on chemicals

and service in all regions around the world, we aim

for automotive parts and printed circuit boards, and as

to improve sales through initiatives that incorporatea result, the share of international sales of our chemicals

strategies for development, production, pricing, andbusiness has grown to nearly 80%. In order to maintainpublic relations that are coordinated across the group.

In the decorative and functional sector, we manufacture and sellchemicals mainly used with automotive parts and faucet hardware.
Demand for chemicals in this sector is expected to grow moderately
products have become essential with the increasing popularity ofelectric vehicles and other environmental conservation initiatives. Shower heads

smartphones, PCs, tablets, and servers. In addition

the high integration, high-frequency compatibility, andto main products such as “Via filling copper sulfate

environmental friendlinessplating process” and “Etching process for fine wiringof electronic components;

formation”, we are also developing technologies tomoves that are increasingly

reduce environmental impact throughout the supply

accelerating towards 5G

chain through the use of our products, including theand 6G, and beyond.

development of processes to shorten our customersʼ

Electronic parts

Laptop PCs

Semiconductor wafers

Smartphones

Printed circuit boards

Overview and Strategy of Our Equipment BusinessIn our equipment business, we design, manufacture,

R&D of chemicals. And through verifications̶from theand sell surface treatment systems for the Japanese

viewpoint of equipment mechanisms̶of technical issues

and international markets. Our fully automated andthat cannot be resolved with chemicals alone, we promoteprecisely developed surface treatment equipment are

the development and sales of differentiated equipmentused in a variety of sectors, including the automotive andthat maximize the performance of chemicals. In addition toelectronics-related industries. Based on the concept of

plating equipment, we also sell printed circuit board etching“integrated sales of systems and chemicals,” which has

and cleaning equipment that use plasma technology which

been our philosophy since the time our company was

has a high affinity with chemicals, and other equipment thatfounded, our equipment division also takes part in the

support high-density manufacturing technologies.

Faucet hardware

GOVERNANCE

With respect to environmentally friendly

on the latest technologies that support moves towards

products, we are developing and will bebringing to the market as soon as possible
processes that do not use environmentally
regulated chemical substances such as
hexavalent chromium, and processes fordeveloping variations of design plating fordiverse designs.

06

SOCIALover the long term. Environmentally friendly plating chemicals

continue to contribute to sustainable societies by working

and semiconductor package substrates, mainly for

ENVIRONMENT

Decorative and Functional Sector

chemicals used for high-density printed circuit boards

SPECIAL FEATURE

In our chemicals business, we are engaged in the

production processes. Looking to the future, we will

BUSINESS SEGMENT

Overview and Strategy of Our Chemicals BusinessIn the electronics sector, we manufacture and sell

COMPANY PROFILE / TOP MESSAGE

Business Strategy and Sustainability

Construction parts

Automobile parts (exterior)

Automotive (end products)
Fully automatic programmable surface
treatment equipment

Plasma surface treatment equipment

Automated analytical control equipment

07

SPECIAL FEATURE
ENILEX NI-500, a chemical nickel plating process that
does not use nitrogen compounds

03

As an R&D-oriented company, the JCU Group develops products that meet the needs of society. The

plating processes that use nitrogen compounds, and candevelopment of environmentally-, cost-, and health-conscious products is one of our basic strategies,
and we will continue to aggressively introduce environmentally friendly products in the market.
In this special feature, we would like to provide an overview of the chemical nickel plating process
we have developed which enables users to reduce their environmental impact,

EN I L E X

N I -50 0d el i ve rs

enough to be used in the field.

performance equivalent to that

As such, ENILEX NI-500 has the great advantage ofof conventional chemical nickel

being free of nitrogen compounds, yet delivering the same
performance as conventional processes.

form a uniform nickel film over the entire surface of plastic
materials that are widely used in POP. In POP, chemical
nickel plating is followed by the electrolytic plating ofvarious metals such as copper, nickel, and chromium.
Processes similar to that used in conventional processes

and deliver a message from the developer.

can be used in ENILEX NI-500 to give the material a

Development
background

Most decorative parts withstabilize the plating solution. However, ammonia and other

Additionally, if stability is compromised in a chemicala metallic appearance used innitrogen compounds have a large environmental impact,

nickel plating process, metallic nickel can be deposited

automobiles, faucets, etc. arecontaminating soil and water quality, as well as making

as impurities in the solution. The ENILEX NI-500 plating

wastewater treatment difficult.

solution is as stable as conventional processes, stable

Appearance of sample plated with chrome after ENILEX NI-500 plating04

produced in a plating-on-plastics (POP) method, where plastic

In fact, strict effluent regulations for ammonia have been

luster appearance. The POP process uses chemical nickel

introduced in China and other countries, and more recently,

plating to form a nickel film on plastic materials as a base forthe countries have also imposed regulations on compounds

electrolytic metal plating which makes them conductive.

containing nitrogen. It was against this background that JCU

Conventional chemical nickel plating processes used
for POP contain high concentrations of ammonia toProcessfeatures

The most significant featureof ENILEX NI-500 as mentioned

developed ENILEX NI-500, a chemical nickel plating processthat contains no nitrogen compounds.
the ENILEX NI-500 process is nearly odorless and can make afor POP is almost unheard ofand this proprietary technology is patent pending.
The ENILEX NI-500 has been tested successfully on adifficult to obtain sufficient performance without using

pilot line at a near-mass-production scale, and we will

nitrogen compounds, especially ammonia, in chemical

continue to make further efforts to expand its sales.

nickel plating. ENILEX NI-500 achieves the same plating

amounts of ammonia, amine compounds and other nitrogen

performance. Lead has long been considered a hazardous

compounds, their drawback has been that wastewater

substance and is subject to regulations such as the Restriction

treatment was difficult. However, ENILEX NI-500 is not affectedof Hazardous Substances Directive (RoHS) in Europe. ENILEX

by effluent regulations because it uses neither ammonia nor

NI-500 does not use lead compounds either, giving it aany other nitrogen-containing compound. Another drawback

smaller environmental impact than conventional chemicalof conventional processes was that ammoniaʼs strong odor

nickel plating. As such, it is a process that can make positive

made them difficult to work on. The plating solution used incontributions to the realization of sustainable societies.

ENILEX NI-500
Nearly odorlessContains lead compounds

Lead-freeContains ammonia

No nitrogen compounds

Strict effluent regulations

Reduced environmental impact

It was a great challenge to develop a method of

A characteristic of ENILEX NI-500 is that it uses

chemical nickel plating that uses no nitrogen compounds

components with less environmental impact comparedor lead or any other regulated substance. Conventional

to conventional chemical nickel processes. In recent

chemical nickel plating relied on environmentally

years, the SDGs and other factors have directedhazardous substances such as nitrogen compounds andparticular attention to environmental considerations,lead to maintain the stability and performance of theand this process can make aplating solution. Since it had been difficult to maintainsignificant contribution to these

performance without these substances, a very significant

efforts. In addition, they can bechallenge in our development was how to constructhandled in the same way asadditive components so that the process would be able

conventional processes, so there

to deliver performance that would withstand the rigors

is no compromise to productivity.

of practical use. Many trials and errors were required to

We expect ENILEX NI-500 tosolve this problem without the use of environmentally

become the new standard for

harmful substances and to make a practical process thatchemical nickel plating going

would be superior in terms of both plating performance

forward.

and cost.

Kosuke Wakata,Critical Technologies
Development Department,
R&D Center

GOVERNANCE

Strong odor

Message from the developers

SOCIALIn addition, lead compounds were also used at times inconventional chemical nickel plating processes to improve

unique additive components that we have developed,

ENVIRONMENT

above is that it uses no nitrogen

performance as conventional processes with the use ofin the industry. This is partly due to the fact that it issignificant contribution to improving the work environment.

compounds. Because conventional processes use large

Conventional process

In closing

A nitrogen compound-freechemical nickel plating process

SPECIAL FEATURE

materials such as ABS resin are plated to give them a metallic

BUSINESS SEGMENT

uniform metallic luster appearance.

01

02

Process
performance

COMPANY PROFILE / TOP MESSAGE

Development of Environmentally Friendly Products

Illustration of the difference between a conventional process and ENILEX NI-500

08

09

ENVIRONMENTThe JCU Group makes every effort to preserve the global environment andcontribute to the creation of sustainable societies.

R&D Center and Niigata Plant
May 29, 2000

Registration number
Certification body

JCQA-E-0143

Japan Chemical QA Co., Ltd. (JCQA)◆Status of ISO14001 certification at overseas offices◆ JCU Environmental Policy

Country/region

JCUʼs main business is the manufacture and sale of surface treatment chemicals with a focus on plating, andChina

we make significant contributions to the advancement of society and enhancement of comfort in our daily

Taiwanlives by enabling miniaturization and greater densities for electronic devices, and improving the appearance

Korea

and corrosion resistance of automobiles and other daily necessities. We also contribute to environmental
preservation through efforts such as resource and energy conservation.
On the other hand, we not only consume electricity, water and other environmental resources in our productdevelopment, manufacturing and other business activities, but also discharge chemical substances into the
In addition, the use of products that JCU supplies also has an affect on the environment, such as in the form ofchemical discharges and energy consumption.
Taking these matters into consideration, we have established the JCU Environmental Policy below to makefurther efforts to preserve the environment.

１．Thoroughly ensure that chemical substances are managed properly and thatanomalous events or emergency.
２．In order to reduce the environmental impact of our products as much as possible, make every effort toresearch and develop products and processes that are designed to minimize environmental impact,
and thoroughly manage the environmentally controlled substances used in our products.
３．Promote waste reduction, and energy and resource conservation.

JCU SHENZHEN TRADING CORPORATION(Head of the Niigata Plant)

Manager(one person)

JCU SURFACE TECHNOLOGY HUBEI CO., LTD.
JCU TAIWAN CORPORATIONJCU KOREA CORPORATIONJCU KOREA CORPORATION Cheonan Factory

Thailand

JCU（THAILAND）
CO., LTD.

VietnamJCU VIETNAM CORPORATION

Deputy manager(one person from the
Niigata Plant)

Deputy manager(one person from the
R&D Center)

Environmental Action PlanAt the JCU Group, our initiatives are based on setting
office-specific targets on major environmental themes.

manage and reduce waste in order to improve ourenvironmental performance. Although it was difficult

In FY2021, we provided in-house education continuing

to forecast production volumes due to the COVID-19

from the previous fiscal year on laws, regulations, theoutbreak and supply chain disruptions, the Niigata

environment, and chemical substances to improve thePlant regularly checked and communicated changes

knowledge and awareness of our employees. In addition,in performance, and raised awareness on energy use

in order to ensure compliance with laws and regulations,

reduction. The R&D Center succeeded in reducing

each site promotes the acquisition of qualifications

electricity consumption and alkali effluents year-over-yearby employees such as health manager and hazardous

as a result of activities such as regularly making thematerial handler in accordance with training plans.

amounts of waste and energy consumption known

The Niigata Plant and R&D Center continue to properly

throughout the organization.

Compliance with laws and regulations
environmental regulations such as the European

４．Run environmental management systems effectively and update them continually.

environment and creating sustainable societies, the JCU

Directive on the Restriction of Hazardous Substances

５．Comply with environmental laws and regulations, as well as customer requirements agreed to by JCU.

Group complies with all relevant laws and regulations.

(RoHS Directive), and the Regulation concerning the

We are working to raise awareness of applicable laws

Registration Evaluation Authorization and Restriction

and regulations by acknowledging them company-wideof Chemicals (REACH regulation) to restrict the use of

to create a shared recognition. We also comply withdesignated hazardous substances.

６．Ensure that employees of JCU as well as of companies and organizations, and workers contracted by
JCU are all well-informed on this Environmental Policy, and make the Policy available to the general public.

In addition, the JCU Group has acquired and continues

management system to realize its Environmental Policy.

to maintain its ISO14001 certification to improve its

The head of the Niigata Plant is the Chief Environmental

environmental performance. In Japan, our R&D Center,

Management Officer, under whom is assigned a manager

which is our center for research and development, andwho, along with his or her deputy manager, takes care of

the Niigata Plant, which is our production base, were

the Groupʼs environmental management.

ISO14001 certified in May 2000 and continue to carry

The R&D Center and the Niigata Plant collectout management based on this standard. Outside of

information on environment-related data and laws andJapan, we have acquired ISO14001 certification at theregulations, and drive forward specific environmental

business sites listed in the table and carry out ongoingconservation activities.

environmental improvement activities at these sites.

In order to contribute to preserving the global environment and creating
sustainable societies, the JCU Group is committed to make effective use of the resources
used to realize products, including raw materials.

Raw materials recycling

The JCU Group is working to reduce the resources it

uses through recycling and other initiatives.
The R&D Center collects plating solutions andprocessed samples containing precious metals used in

effective use of resources.

GOVERNANCE

The JCU Group has set up an environmental

SOCIAL

Raw Materials

Environmental Management System

ENVIRONMENTIn order to contribute to preserving the global

SPECIAL FEATURE

preventive measures are implemented to minimize environmental pollution even in the event ofApplicable office

Chief Environmental
Management Officer

BUSINESS SEGMENT

environment in the form of waste and cleaning water.

10

Applicable office
Registration date

◆Environmental Management System Schematic

COMPANY PROFILE / TOP MESSAGE

Environmental Management◆Overview of ISO14001 certification at offices in Japan

In addition, the Niigata Plant collects and recycles
waste and cleaning water generated during productmanufacturing to make effective use of resources.

research and development, and recycles them to make11

ENVIRONMENT

Carbon Offsetting Initiatives
From its location in Joetsu City, Niigata Prefecture,
JCUʼs Niigata Plant supplies products destined for markets

In order to contribute to preserving the global environmentand creating sustainable societies, the JCU Group is committed to make effective use of energy.

around the world. JCU is an advocate of the “Toki-no-Mori(Crested Ibis Forest) Project” which is run by the Prefecture

Use of renewable energyof Niigata within Sado City limits, and is also an ongoingcollaborator in carbon offsetting initiatives.
The aim of the Toki-no-Mori Project is to drive

The JCU Group is driving forward with the use of

global warming countermeasures forward by securing

renewable energy to reduce greenhouse gas emissions.

the CO₂ absorption capacity of trees, promote forest

As part of our efforts to reduce CO₂ emissions, solar power

improvements, and revitalize forestry. The Project also

generation facilities were installed at the Niigata Plant in
Joetsu City, Niigata Prefecture, and the R&D Center in
Kawasaki City, Kanagawa Prefecture, business sites in Japan
where electricity consumption was particularly high. The
Niigata Plant has been using electricity generated by solar
solar panels in FY2022 and source approximately 60% of
the maximum electricity used at the site from renewableenergy sources at the Hubei Plant in China̶which opened
for operations in FY2020 ̶by installing solar panels
capable of covering approximately 40% of the Plantʼs
In addition, JCU is engaged in projects related to solar
power generation facilities, and operates a solar power
plant with an installed capacity of 1,000 kW in Takikawa
City, Hokkaido.
JCU will continue to take various other actions toachieve the goal of offsetting CO₂ emissions from the◆Effect of introducing solar power generation facilities

400,000
200,000
050■SOx emissions reductions* (㎏‐SOx/year)（t-CO ）
1,400
2

48

48

1,200

42

1,000

30

10
0

16

18

18
15

16

17
12

10
5

85,58591,62180,648

2017

2018

2019

2020

89,5402021(FY)0

2018*52019*611
10

2020*7The ibises are gradually returning to their wild habitats
thanks not only to the Toki-no-Mori Project but also tovarious activities by local residents for improving theenvironment around their habitats.

power generation facilities and aggressively introduce
renewable energy, the Niigata Plant is constantly engaged inenvironmentally conscious activities. In FY2021, the percentage
of on-site power generation from solar power at the Niigata
Plant increased by 1.2% to 13.5% year-over-year. In addition,plans are in place to install more solar panels in FY2022, and tocontinue our efforts to further reduce our CO₂ emissions.
The R&D Center has introduced solar power generation
facilities, and installed energy-saving air conditioners and LED
lighting in order to reduce CO₂ emissions,
In our Medium-Term Corporate Plan, the JCU Group has set
the “Niigata Plant CO₂ Zero” target which calls for offsetting aconsiderable amount of CO₂ emissions from the Niigata Plant
to zero with contributions from all domestic business sites by
FY2030 (FY ending March 31, 2031) based on FY2013 (FY
ending March 31, 2014) levels.
The JCU Group will continue to make efforts to achieve
its goals and contribute to society through environmentallyconscious corporate activities.

Niigata Plant R&D Center Head Office Osaka Branch
Nagoya Branch Kyushu Sales District Office Total

1,291

10
1418
130

457

1,242

Down19.7% from FY2013
1,211

10
1117
127

6
9 18
105

483

455

595

617

1,198

10 19
82

8

1,162
10 19
75

8

424

390

400

661

655

660

200
2017*4able to observe ibises in the wild within Sado City limits.

total CO₂ emissions. Being the first of our offices to install solar

600

2021(FY)*8*1: Actual carbon dioxide (CO₂) emission factors from values published by the
Tohoku Electric Power Company are used.
*2: Nitrogen oxide (NOx) emission intensity from values published by the Tohoku ElectricPower Company are used.
*3: Sulfur oxide (SOx) emission intensity from values published by the Tohoku ElectricPower Company are used.
*4: Factors of actual FY2017 results used. *5: Factors of actual FY2018 results used.
*6: Factors of actual FY2019 results used. *7: Factors of actual FY2020 results used.
*8: Factors of actual FY2021 results used.

12

13.5%

87,712

800
21

12.3%

Currently, although their numbers are still small, we are

A breakdown of CO₂ emissions at our domestic offices showsthat emissions at the Niigata Plant account for about half of our0

Carbon offsetting

Although the reduction of CO₂ and greenhouse gas emissions isvery important in countering global warming, CO₂ emissions remain
an inevitable part of our daily lives and corporate activities.

2017

2018

2019

2020

2021(FY)* This is calculated for electricity and gas at each office.
* The calculations use factors from organizations including Tohoku Electric Power Company,
Kansai Electric Power Company, Chubu Electric Power Company, Kyushu ElectricPower Company, Joetsu City Gas and Water Bureau, Toho Gas Company,
Tokyo Gas Company, and the Liquefied Petroleum Gas Association.

Carbon offsetting refers to methods for making up for (offsetting)all or part of the CO₂ emissions that occur despite our bestemissions reduction efforts by funding forest improvement andother greenhouse gas reduction projects.

As a company that actively cooperated with the “Niigata
Carbon Offset Program” in FY2021, we received a letter of

GOVERNANCE

2015

19.7% from FY2013.

SOCIAL45

40

47

driver of our global warming countermeasures.

succeeded in reducing FY2021 emissions by approximately◆Total CO₂ emissions at offices in Japan by fiscal year

■CO₂ emissions reduction* (t-CO₂/year)
3

14.5%

promoting tree growth. These human interventions are a*1: Electricity consumption = Electricity purchased + Electricity generated - Electricity sold
*2: Excluding electricity sold1

■NOx emissions reductions*2 (kg-NOx/year)

13.4%

14.0%

662,924

655,830

have the effect of suppressing pest insect outbreaks andAccording to an aggregate survey of CO₂ emissions fromthe use of electricity and gas at domestic offices, we have

ENVIRONMENT

Niigata Plant to zero by FY2030 (“Niigata Plant CO₂ Zero”).

forest gets enough light intensity, which in turn improves

As a measure to counter global warming, JCU makes every

SPECIAL FEATURE

maximum electricity consumption.

Culling and pruning trees in this manner ensures that the（％）20（kWh） ーIn-house power generation rate
800,000
600,000

effort to identify and reduce carbon dioxide (CO₂) emissions.

CO₂ absorption efficiency. In addition, these procedures■Consumption of power generated in-house*2

631,759

have been released into the wild and conserving the
In a forest within Sado City limits in Niigata, we see trees■Electricity consumption*

611,542

Initiatives to achieve “Zero CO₂ Emissions”

that have been culled with their lower branches pruned.

1

653,599

aims to contribute to improving habitats for ibises that
forestʼs rich ecosystem.

Niigata Plant in Joetsu City

◆Changes in electricity consumption andin-house power generation at the Niigata Plant(installed solar power generation capacity: 100 kW)

energy sources. With respect to our overseas production
sites, operations are underway to make use of renewable

Solar panels installed at the

Hubei Plant in China“Niigata Carbon Offset”
emblemBUSINESS SEGMENT

power since FY2011, and the Plant plans to add more

Solar panels installed at the“Toki-no-Mori Credit”
emblemCOMPANY PROFILE / TOP MESSAGE

Energyappreciation from Niigata Prefecture in recognition of ouroutstanding achievements in terms of the quantity and durationof our purchases of Niigata Prefecture J-credits, as well as how
we utilized them.

13

Wastewater and Waste

ENVIRONMENTIn order to contribute to preserving the global environment andcreating sustainable societies, the JCU Group complies with laws andregulations that govern the quality of water, air, and soil, and is committed to reduce emissions ofenvironmentally hazardous substances from its sites.

In order to contribute to preserving the global environment and creating sustainable societies,
the JCU Group makes every effort to reduce its use of water resources.

Understanding Water Usage
Because JCU uses large amounts of water resources for

Proper Treatment of Wastewater◆Annual water consumption at domestic offices

The JCU Group pays special attention to ensure

R&D and at our production sites, we make every effort tounderstand and reduce water consumption at all of ourdomestic sites. The resolution of water resource-related
issues has also been set forth as one of the Sustainable
Development Goals (SDGs), and we will continue to takeactions to improve our operations going forward.

Down 20%from FY2017

17,06016,00013,34013,27512,803

13,553

addition, wastewater discharged from all business sites
8,000

are managed using analytical instruments to ensure that

4,000

Furthermore, all sites concentrate and reduce theit meets environmental standards.
volumes of effluent that they are unable to treat in their

the Niigata Plant compared to the previous year. Per-unit
water consumption per production volume at the Niigata

0

Plant remained largely unchanged from the previous fiscal

2017

2018

2019

2020

2021(FY)In addition, the Niigata Plant and R&D Center are
engaged in actions to understand the amount of tap water

12,00011,883

1.50

1.54

1.56

1.33
9,060

8,000

8,398

4,262

1.5
4,000

9,190

33.1
3,538

3,615

3,737

2017

2018

2019

2020

2021 (FY)0.0

the boilers and hot-and-chilled-water generators usedat the site for particulate matter and nitrogen oxides toensure that there are no problems.

3,663

2,000

pits and gutters for our outdoor tanks. In addition, wealways have response kits ready to use in the event of30

Waste Reduction15

use of resources to reduce waste.

The JCU Group makes every effort to make effective
Our one-ton containers for transporting specificproducts are reused as two-way containers; that is, they0

specialized third-party agencies to analyze and examine

0

2017

2018

2019

2020

2021(FY)0

are used one their way to and from our customers andbusiness partners.
In addition, empty poly containers that are no longer

Exhaust cleaning towers at the R&D Center

GOVERNANCE

0.5

The Niigata Plant also regularly commissions

programs to prepare for emergencies.

1.0

4,000

agencies to analyze and verify that gas purification isa leak, and we use these in our education and training

36.3
32.5

of hazardous substances contained in the discharged

measures to prevent leakage by installing oil embankments,

ーUnit of water consumption

32.6

with exhaust cleaning towers to prevent the releaseliquid leakage to the outside. At the Niigata Plant, we take

(Unit: ㎥ /person)
45
37.7

Our R&D Center and Niigata Plant are equipped

SOCIAL

8,880

（㎥）
6,000

on a regular basis.

ENVIRONMENT

1.67（Unit: ㎥ /ｔ)
2.0■Water consumption

environment by conducting environmental measurementspits, and gutters in our experimental facilities to prevent◆Unit of water consumption per number of employees
at the R&D CenterーUnit of water consumption

environment. We also make every effort to preserve thebeing performed without any problems.

containers from tipping over, and also install embankments,◆Unit of water consumption per production volume
at the Niigata Plant

business sites so that they do not affect the surrounding

Proper Management of Chemical Substances
At the R&D Center, we take measures to keep solution

for water conservation.

At the JCU Group, we perform purification processes
on gases that we discharge into the atmosphere from ourgas. We regularly commission specialized third-party

chemicals to reduce our impact on the environmental.

reducing water consumption such as by regularly calling

Purification of Atmospheric Emissions

industrial waste.

The JCU Group properly manages environmental

used and discharged, and to establish an awareness for（㎥）
16,000own facilities before they are properly disposed of as

companies.

SPECIAL FEATURE

year at 1.56 ㎥/t.

■Water consumption

Portions of wastewater generated during research andneutralized and precipitated in facilities at these sites. In

5.9% compared to the previous fiscal year. This can be
attributed mainly to the increase in production volume atsurrounding environment.
manufacturing at the R&D Center and Niigata Plant are

12,000in FY2021, and while this represented a roughly 20%
decline compared to FY2017, it was an increase of about

manufacturing sites does not adversely affect theare recycled as resources by contracted waste disposal

BUSINESS SEGMENT

Domestic sites took in a total of 13,553 ㎥ of waterthat wastewater released from its development and（㎥）
20,000In addition, metals, glass, and other waste materials

COMPANY PROFILE / TOP MESSAGE

Water

needed at the R&D Center or Niigata Pant are collected
and recycled as resources. These poly containers are
washed and then crushed into pellets to be recycled
into various plastic products.

14

15

SOCIAL

Disclosure of Product Related Information

The JCU Group always approaches things from the customerʼs perspective,
ensures reliable quality and safety, and provides detailed support to deliver safety andsecurity to our customers.

Quality Control
The JCU Group believes that maintaining andimproving quality leads to customer satisfaction andtrust, and this in turn leads to sustainable growth forthe entire JCU Group. This idea is the basis on which
we established the JCU Quality Policy which we have

The JCU Group has set up a quality management
system to realize its Quality Policy. The Head of theClassification and Labelling of Chemicals (GHS). ProductNiigata Plant is the Chief Quality Management Officer,

labels display information in Japanese, English and,

under whom is assigned a manager who, along with his

where needed, in the language of the country to which

or her deputy manager, takes care of the Groupʼs quality

the product is delivered as provided in the countryʼs

improvement activities.

laws and regulations.

◆JCU Quality Policy

We have established the following Quality Policy
based on JCUʼs management philosophy, social
conditions, and market developments.

Technical documentation describing the performance◆Quality management system schematicof and control methods for each product is prepared by

Chief Quality
Management Officer

the R&D Center. The contents of technical documentation
are carefully examined by Sales and other departments

In addition, our Niigata Plant, Sales Office, and R&D

and contribute to enriching peopleʼswith GHS and Japanese laws in Japanese and English.

Center in Japan are certified for international standard

lives by pursuing new surface treatment

Subsidiaries outside of Japan are responsible for conformance

ISO 9001 and continue to work to control, maintain,

technologies.

with laws and regulations in their respective countries.

offices listed in the table are ISO9001 certified and arecommitted to quality management.

◆Provide products and services of the sameprocesses and manuals for standardizing quality
inspections to improve work efficiency. The R&D Center
focused on enhancing customer service by establishinga timely product development system, improving
efficiencies in development and commissioned testing,◆Status of ISO9001 certification at overseas offices
Applicable office
JCU SHENZHEN TRADING CORPORATIONJCU SHENZHEN TRADING CORPORATION, SUZHOU BRANCHJCU SURFACE TECHNOLOGY HUBEI CO., LTD.

JCU KOREA CORPORATION Cheonan Plant
JCU（THAILAND）CO., LTD.

VietnamJCU VIETNAM CORPORATION

MexicoJCU AMERICA, S.A, DE C.V.

China

and implement the following:（1）Promote continuous improvement sothat quality management systems areable to fully realize their effectiveness.
（2）
All departments are to formulate quality
targets based on issues associated with
their business and strive to achieve these

Applicable office

ISO certification

JCU SHANGHAI TRADINGCORPORATION, INSPECTION CENTER

ISO17025 *1

JCU SURFACE TECHNOLOGYHUBEI CO., LTD.

ISO45001 *2*1: ISO17025 is an international standard that certifies testing laboratories, andprovides general requirements for the competence of testing and calibrationlaboratories.
*2: ISO45001 is an international standard for occupational health and safety
management systems.

recipient at the time the substance is transferred or provided to
the recipient. The document provides information regarding theevent of exposure, storage methods, and disposal methods.

Quality control at the Niigata Plant
At the Niigata Plant, we have establisheda management system based on our quality
management system to ensure the consistencyof the quality of products we manufacture. The
manufacturing, technology, and quality assurance
departments are each independent of each otherand work together to drive forward improvements
for the entire plant through an organizational
structure that allows these departments to monitor
each other. And the manufacturing build-out forwell-informed on the Quality Policy andbetween the R&D Center and plant to ensure stable

quality management systems.

manufacturing from the initial stages of production.

the Quality Policy as necessary.

(one person from
Head Office)handling. SDSs also provide information on first aid measures in thedeveloped products are extensively reviewed

and outside the Company, and revise(one person fromthe Niigata Plant)

Deputymanager

substanceʼs physicochemical properties, hazards, toxicity, and（3）Make sure that all employees are（4）
Respond to changes in conditions inside(one person fromthe R&D Center)

Deputymanager

In addition, we make every
effort to provide the same
quality and service to all
customers regardless of region
or country by systematicallyproviding guidance to local
subsidiary staff overseas andconducting on-site audits.

Information Protection
In order to properly handle and protect customer andbusiness partnerʼs information, the JCU Group prohibits
the use of information obtained in the course of businessfor other than legitimate purposes, and strictly manages
the information in accordance with our confidential
information management regulations and other rules sothat it is not disclosed or leaked.
In addition, JCU has established and implements a“Personal Information Protection Policy”.

JCU Privacy Policy
https://www.jcu-i.com/privacypolicy/

GOVERNANCE◆Status of other ISO certification at overseas offices
Country/region

management systems based on ISO 9001:2015

targets.

JCU KOREA CORPORATION

ThailandIn order to embody this Policy, we apply quality

substance or compound containing a chemical substance to its

Deputymanager

SOCIALKorea

JCU TAIWAN CORPORATION

region or country.

This is a document that is provided by the supplier of a chemical

ENVIRONMENT

and reinforcing strict adherence to deadlines.

quality to all customers regardless of

Safety Data Sheet (SDS)

SPECIAL FEATURE

Niigata Plant reviewed work procedures in production

Taiwanmarket demands, and pursue customer
share.

In FY2021, with the aim of improving quality, theChinaaccurately and quickly tosatisfaction and a larger global market

Quality Targets

Country/region◆ Respond

Manager(one person)

BUSINESS SEGMENT

We also prepare Safety Data Sheets (SDS) that conformand improve product quality. Outside of Japan, the(Head of the Niigata Plant)

before they are provided to customers.

◆Support manufacturing around the world

defined to be our guidelines for quality management.

16

JCU Group product labels display information in theformat defined in the Globally Harmonized System of

COMPANY PROFILE / TOP MESSAGE

Our Customers

Quality Management System

Tatsuya Hinata,

General Manager of
Quality Assurance

17Community

SOCIALThe JCU Group is committed to building a relationship of mutual trust with its business partners
through fair and equitable transactions, and to providing the highest quality products andservices to its customers. We aim to be a company that can progress unitedly and in all serenity.

Our Approach to Conflict Minerals

Community Initiatives

As described in Chapter 2 “Respect for Human Rights and Healthy
Workplaces” of the JCU Code of Conduct, the JCU Group makes every
effort not to procure so-called conflict minerals (tin, tantalum, tungsten,gold) that are associated with human rights violations, and carries out

Based on our CSR policy that requires us to “make every effort toappropriately communicate with stakeholders and maintain relationshipsof trust,” we at the JCU Group believe that contributing to local communities as a good corporate citizen
is one of our social responsibilities, and are committed to work with residents of local communities tocreate societies where we are able to live comfortably with peace of mind.

JCU Code of Conduct
https://www.jcu-i.com/
wp-content/uploads/2017/02/
koudoukijunn2021.04.pdf

ongoing investigations into the use of conflict minerals in our supply
chain. We have not found the use of conflict minerals associated witharmed groups in our investigations.

The JCU Group is committed to achieve sustainable growth and improve shareholder
value by actively disclosing information and communicating with shareholders andinvestors to enhance the soundness and transparency of its corporate management.

Appropriate Information Disclosure

Every year, the R&D Center and Niigata Plant regularly

make donations to orphanages in Hà Nam Province andcarry out voluntary cleanup activities in their surroundingat the federation of the Industrial Park Association whereareas. We see these cleanup activities as important

JCUVN is located.

opportunities not only for picking up trash, but also

In July 2020, the JCU R&D Center in Kawasaki City,

to raise awareness about the environment where our

Kanagawa Prefecture was registered as a Kawasaki City

business sites are located, something that we may

Disaster Response Cooperating Business (Asao-ku). In

normally overlook. Through these activities, the JCU

addition to deepening exchanges with local communities

Group is committed to continue to help restore thethrough regular local activities, we are committed toenvironment from the viewpoint of residents of ourcooperate as much as possible in disaster response

surrounding communities.

operations in the event of disasters, and contribute to
the mitigation of damage and the early restoration of
The R&D Center also participates in regular cleanupwith the timely disclosure rules stipulated by the securities

performance and financial information, but also topicalexchange, and makes every effort to actively disclose

information that summarizes high-profile topics throughinformation deemed to have an effect on investment

shareholder newsletters and information disclosed on

decisions. Furthermore, our Disclosure Policy is available on

our website. For our international investors, we provide

our website for the general public to view.

and disaster response drills organized by neighborhood
associations, and is building face-to-face relationships
with the local community. We will continue to work andmake every effort
together with thelocal community

an English version of this CSR Report, as well as English

to create an

JCU Disclosure Policy

materials.

environment thathttps://www.jcu-i.com/ir/others/
disclosure̲policy/

In addition, in order to appropriately disclose information,is comfortable tolive in.

the JCU Group has a Disclosure Committee to comply

Communication with Our Shareholders and Investors

ENVIRONMENT

versions of our earnings summary and presentation

Kawasaki City Disaster Response Cooperating Business sticker

JCU Group holds semiannual financial results briefings forand management strategy, etc., to enable stakeholders to

institutional investors and securities analysts, and One on

deepen their understanding in our company, and enable

One Meetings throughout the year.

management to share in the valuable feedback from our

GOVERNANCE

information on JCUʼs business operations, performance,

SOCIALIn addition to the general meeting of shareholders, thehybrid meetings where people attend in person, over the

SPECIAL FEATURE

daily life in the community.

The JCU Group disseminates not only businessIn order to prevent COVID-19 infections, we conduct

Regular Cleanup

JCU VIETNAM CORPORATION (JCUVN) continues toshareholders and investors to improve our managementtransparency.

phone, or online. By improving the efficiency of dialogue
formats, we were able to speak with more investors.
Furthermore, we did not hold a financial results briefing,
and instead published videos on our website explaining
our half-year and full-year financial results.

For IR information, please visit
https://www.
jcu-i.com/ir/ir̲new/.

BUSINESS SEGMENT

Shareholders and Investors

Interactions with Local Communities

COMPANY PROFILE / TOP MESSAGE

Business Partners

Cleaning Activities at the R&D Center

Our aim through these activities was to communicate

18

19

Employees

SOCIAL
Self-Defense Fire Drills

Sponsorship Activities

All of the JCU Groupʼs business sites regularly conduct

JCU became an advocate of the philosophy of theemergency evacuation drills and first aid drills. The

Solaputi Kidsʼ Camp in Maruka Kogen, Takikawa City,

purpose of this program is to train employees to respondHokkaido (https://www.solaputi.jp/), and has been aappropriately and quickly in the event of disasters, andsponsor of the camp, providing drinking water since

to raise employeesʼ awareness of disaster prevention.

FY2019.

In particular, at the Niigata Plant and R&D Center where

Soraputi Kidsʼ Camp is a campsite equipped with

we handle chemicals, we conduct regular education andmedical care facilities where children with intractabletraining programs on the handling of hazardous materials

diseases and their family can camp out. In normal times,

in addition to these drills.

the camp provides children, who may usually havedifficulty going outdoors, opportunities to interact with
their friends, and various experiences such as gettingin FY2021, the camp had difficulty offering their normal
activities due to the ongoing spread of COVID-19 cases.
Even under these circumstances, however, the staff

Firefighting and evacuation drills at the Niigata Plant

Ecocap movement
JCU began cooperating with the Ecocap Movement in
SDGs.
The Ecocap Movement is an activity where the caps ofPET beverage bottles which would typically be thrownaway are collected and recycled, with the proceeds
used to promote employment for people with disabilities

and ingenuity to give children memorable experiences,such as camping programs where family members areinvited one family at a time, and sending gifts of snow
to children who were fighting these intractable diseases
in hospitals or at home.
Solaputi Kidsʼ Camp activities are being sponsored bymany corporate sponsors. JCU will continue our support
for the camp so that we can be of as much help for these
activities as possible.

Achieving employee retention
JCU carries out initiatives to ensure employee retention.
We encourage employees to make use of opportunities todiscover and develop their own abilities such as by taking
self-development seminars, visiting trade shows that canpotentially help grow our business, and taking language
training courses. We also ask all individuals to use a goal
management sheet to set their personal goals. The goal
management sheet is designed to help individuals express
their individual goals with more clarity, and check whether
they are able to perform work that is a step above and ismore rewarding for themselves. In addition, we are also

employment (15.5 years for men, 11.7 years for womenin manufacturing *¹), these numbers were notably higher
for women at more than 2 years higher than the industry
average. The average number of years of employment
has been trending gradually higher for both men andwomen since FY2017.
The turnover rate, which was 6.1% in the survey for theprevious fiscal year, reached 4.8% in FY2021 *² (Reference:
The average turnover rate in the manufacturing industry for
FY2021 was 5.1% *³). A breakdown of the turnover rate
shows that 4.0% left for personal reasons, 0% for company

enhancing our employee benefit programs as a way ofreasons, and 0.8% for retirement or other reasons.

creating a comfortable working environment.

*1: Excerpted from the “Basic Survey on Wage Structure̶Results and Overview” from
the Ministry of Health, Labor and Welfare*2: Rounded to the first decimal place.
*3: Excerpted from the “2021 Survey on Employment Trends̶Results and Overview”
from the Ministry of Health, Labor and Welfare

As a measure of whether these initiatives contribute toemployee retention, JCU calculates the new employee
retention rate, average number of years of employment,
and turnover rate.
The retention rate of new employees who joined thecompany over the past three years (from FY2019 to
the FY2021) was 100%. The average number of yearsof employment was 15.4 years for men and 13.9 years
for women, which were both higher than the previous

and the elderly, and support vaccinations for children in

fiscal year. Compared to the industry average years of◆Average years of employment (non-consolidated)
Men (years)

Women (years)

Men and women
total (years)

FY2021

15.4

13.9

15.0

FY2020

14.8

13.7

14.5

FY2019

13.9

13.2

13.7

FY2018

13.2

13.0

13.2

FY2017

12.9

11.6

12.6

activity and collects caps from PET bottles in all offices inHarassment countermeasures

Japan to cooperate with this movement which is being

As a measure to counter harassment, the JCU Group

carried out by the Disable Support Association of Japan,

provides a permanent sexual and power harassmenta specified non-profit corporation (NPO).

consultation section in-house. One male and female are

In fiscal 2021, we collected a cumulative total of

assigned at all offices as contact persons in charge, andthis is communicated to all employees on the intranet toabout 19 people, or a roughly 121kg reduction in CO₂

create an environment where people feel comfortableemissions. JCU is committed to continue activities thatseeking consultation. In addition, we have formulated

serve our societies.

Number oftimes held(number)Training details

1

Conducted harassment prevention
training (for Head Office managers)

July 20191

Conducted mental health training(R&D Center self-care)February March 20184

Conducted harassment
prevention training (for managers)

so that we are able to quickly act on stress and anxiety

November 2016

2

Conducted mental health training(self-care for chiefs and lower)

issues that employees may have. We provide mental health

September 2015 March 2016

4

Conducted mental health training(line care for managers)

September 2014

2

Conducted orientation at the timethe EAP contract was entered

for addressing mental health and various harassment issues

care training headed by EAP lecturers, distribute pamphlets
and cards, and publish information on the intranet four times

GOVERNANCE

July 2020

make every effort to prevent various types of harassment,

outside the company (EAP/Employee Assistance Program)

20

Dates/duration

Self-care training(for managers)

In addition, we have also established a consultation desk

Activities at the Solaputi Kidsʼ Camp

◆Status of employee training on mental health andharassment (non-consolidated)1

resolve issues, and protect privacy.

Caps from PET bottles collected in our offices in Japan

comfortably.

July 2021

a harassment prevention policy for all employees, andJCUʼs donation of drinking waterwhere all employees, including managers, are able to work

SOCIAL

38.6kg of caps. This is enough for polio vaccinations fora year as part of our efforts to create an environment

ENVIRONMENT

developing countries. JCU became an advocate of this

SPECIAL FEATURE

November 2020 to contribute to the achievement of theat Solaputi Kidsʼ Camp continued to put in hard work

Comfortable working environment

BUSINESS SEGMENT

close to and touching animals in a natural setting. But

We at the JCU Group believe that making good use of theindividual abilities of employees is a major pillar of our management,
and are working to develop human resources and create comfortable working environments.

COMPANY PROFILE / TOP MESSAGE

Community Initiatives

21

SOCIAL

Human Resource Development
One of the basic policies of the JCU GroupʼsMedium-Term Corporate Plan is to “build a management

Diversity and Equal Opportunity
The JCU Group respects diversity and strives to realize equal opportunity. There are no gender differences in our termsof employment.
◆Number of employees (non-consolidated)■Men（Persons）
300
24.6%
200
100
0

■Women◆Percentage of full-time employees (non-consolidated)■Average number of part-time and temporary transfer employees per year
■Number of full-time employees ーPercentage of full-time employees

ーRatio of women
（％）
30

25.0%

25.7%

25.2%

25.6%

65

64

66

63

62

20

199

191

191

187

180

10

2017

2018

2019

2020

（Persons）
95.3%
300
13
150

0

0

2021
（FY）

■Women950

9 12.7%

11.3%

62

71
0

2017

2018

12.8%

10.8%
10

66

68
2019

2020

8

15

12

12

12

255

2017

257

2018

0.94%

11.1
10 %

10

5

64
2021
（FY）

95.3% 100

250

2019

50

242

2020

0

2021
（FY）

0

0

2

4

（％）
1.5

1.04%
0.64%

2

2017

4

2018

0.65%

2

3

2019

4

2020

0.75

3

3

2021
（FY）

0.0

Childcare and Nursing Care
In order so that employees are able to make the most of diversity in performing their work, JCU provides a childcare
leave program that allows employees to take more days off than the statutory days stipulated by the Ministry of Health,Labour and Welfare, and a shortened working hours program for childcare that is used by male employees as well. We
also provide a similar nursing care leave program.

3

3
2

0

2017

2018

2

2019

2

2020 2021（FY）

Eligible
persons(persons)

Number of people
who took leave
Percentage (%)

Percentage of
people who
returned to work (%)

FY2021

1

3

9

44.4

100

FY2020

2

2

8

50.0

100

FY2019

0

2

11

18.2

100

FY2018

0

2

8

25.0

100

FY2017

0

3

13

23.1

100

Overview of maternity leave, childcare leave, and nursing care leave programsChildcare leave program

Up to 2 years of age (at the longest)

Shorter working
hours forchildcare

Other
Nursing care leave program
Shortened hours for nursing care

22

Employees who live with and are raising children between 1 and 3 years of age are eligible for shortened hours forchildcare where their hours are shortened by up to 2 hours a day (2 paid hours).
Employees who live with and are raising children aged 3 and up to elementary school age are eligible for shortened
hours for childcare where their hours are shortened by up to 2 hours a day (1 paid and 1 unpaid hours).
Employees who live with and are raising children at elementary school age are eligible for shortened hours forchildcare where their hours are shortened by up to 1 hour a day (1 unpaid hour).
Employees who are raising children up to elementary school age can, upon request, take advantage oflimited late-night work for childcare, child nursing leave (unpaid), and limited overtime work.
Employees who are raising children under the age of 3 can, upon request and under certain conditions,
receive exemption from overtime work for childcare.

Talents who have amanagement perspective

New employees undergo training in various

Themesdepartments for approximately two months after joining◆Strengthen expertise required for productdevelopment

they learn the principles of surface treatment through◆Improve technical and sales capabilities of local staff

experiments, factory training in which they learn the◆ Newly establish an overseas assignment experiencechemical manufacturing process from raw material input

programto shipment, and sales training in which they accompany◆ Enable shifts to career paths suitable for a global

structure

their seniors to customersʼ production sites where our◆Strategic staffing

chemicals are being used. This allows employees to◆ Reinforce management training for managers andand acquire the basic knowledge that they will needto provide better products and services. In addition,

management candidates

Excerpted from the Medium-Term Corporate Plan(FY ending Mar 2022-FY ending Mar 2024)

we also conduct regular information security andcompliance training to prevent information leaks andProgress Management Sheet” to help employees acquire

ensure compliance with laws and regulations.

the necessary skills. Our overseas offices also held a

As for human resource development initiatives

variety of training sessions, including technical workshops

implemented at different business sites, the Niigata Plant

and study sessions on laws and regulations to improve

provides training to strengthen employeesʼ ability to

the skills of local employees.

identify near misses and other problems. The R&D Center

Furthermore, JCU offers the following training programs

has adopted a skills matrix to provide employees withto help employees grow in ways that are consistent withan objective view of their individual abilities and to raise

the globalization of our organization.

their awareness of their aptitude. And the Sales Officehas created a “Sales Capability Development Activity Plan

The JCU Group will continue to implement a variety ofmeasures for the development of its employees.

Overseas Training Program

Language Training Program
We p ro v i d e l a n g u a ge t ra i n i n g to

We launched an overseas training program for younger employees in

improve our employeesʼ abilities and

FY2021. The objective of this program is to provide applicants who arepromote their self-development activities.

interested in working overseas with a short-term work assignment at an

In FY2020, the training was temporarily

overseas subsidiary, and through this experience, to help them grow into

suspended due to the COVID-19 outbreak,talents with a global perspective. We also expect employees to rediscover

and was resumed in FY2021 as an online

their individual aptitudes through direct exposure to different working styles

language training program.

and cultures they encounter in different countries.

◆Training programs for human resource development
Post

Reference age
bracketStratified training

Management

40s and above

Managerial training

Promotee training

Mid-level employees

30s and above

Mid-level employee training

Promotee training

Young employees

Late 20s and above

No more than a total of 93 days per person

New employees

No more than a total of 93 days per person

Prospective employees

Early 20s and above

Follow-up training
New employee training, OJT, and follow-up training (6 months later)
Pre-employment training

Global human resource
development training

Company-wide common
education and training◆Overseas Training◆Compliance andProgram◆Online language

training(English and Chinese)

information
security education◆Mental healthcare

training

Self-development

GOVERNANCE

Eight weeks each before and after birth

our human resource development programs.

Talents who areable to act globally

SOCIAL* Employees who took maternity leave subsequently took childcare leave, and 100% of them have returned to work.

Maternity leave program

sustainably”. To this end, we are focused on enhancing

Talents with excellent
supportive capabilities

ENVIRONMENT（Persons）
4◆Number of employees who took childcare leave (non-consolidated)
Men who Women who
took leave took leave(persons)(persons)

becoming a “global company that continues to growTalents with excellent
development capabilities

SPECIAL FEATURE* The denominator for the percentage of employees with disabilities includes
temporary transfer employees.

◆Number of employees who tookmaternity leave (non-consolidated)of each and every employee is essential to our goal ofexperience the strengths of the JCU Group in the field,

0.65%

2

priorities is human resource development. The growth

the company, including technical training in which■Number of foreign national employees（Persons） ーPercentage of employees with disabilities
10

（％）
20

8

95.4%

■Number of applicable persons with disabilities

ーPercentage of female managers

10

95.5%

Human resources that JCU needs

foundation from an ESG perspective,” and one of its top

BUSINESS SEGMENT

■Men

264

（％）

94.4%

◆Number of foreign national employees (non-consolidated) /People with disabilities employed (non-consolidated)◆Percentage of female managers (non-consolidated)（Persons）
100◆Human resources that the JCU Group seeks

COMPANY PROFILE / TOP MESSAGE

Comfortable working environment◆ Qualification acquisition

incentives andremote education
assistance program◆Voluntary

participation inexternal seminars

23

SOCIAL
Respect for Human Rights

The JCU Group has an internal organization called the

The JCU Groupʼs Code of Conduct states that the

EUCO Association whose purpose is to ensure mutualGroup does not discriminate based on race, creed,

welfare and fellowship among officers and employees.

gender, age, social status, nationality, ethnicity, religion,

The organizationʼs activities, which are carried out mainlyor disability, etc. In addition, we carry out ongoingby secretaries elected from individual departments,

verifications at all business sites to ensure that childinclude proposing working condition improvements to thelabor or forced labor is not employed.

company, organizing various club activities, and planningand managing events such as employee trips.
Although club activities and events where large

Occupational Safety
At the JCU Group, we have formulated a set of Safety

postponed in FY2021 continuing from the previousand Health Management Rules and make every effort

fiscal year due to the effects of COVID-19, regular

to ensure the safety of our employees based on thesecommunication activities between managers andrules. Safety and health leaders, and safety managers are

employees were carried out through web conferences.

assigned at all of our business sites in Japan to promote

The EUCO Association gets its name from Ebara

safety and health. Monthly safety and health committee

Udylite Corporation, the predecessor of JCU Corporation.

meetings are held at the Head Office, R&D Center, andNiigata Plant.
These Committees carry out patrols, identify
near-misses, organize firefighting and evacuation drills,
and are working to realize safe workplaces where

Employee Comments
JCU has chosen the “Prime Market” in thetransfer to the Tokyo Stock Exchangeʼs new market
classification of April 2022. Corporate Governance
Code revised in June 2021 specifically mentions
We interviewed a female executive officer who hadtaken her post in April 2022 about what it feels liketo be an executive officer, her work to date, and her
future vision for the JCU Group.

A

matched by the cooperation of others.” And I have a real
feeling for this. I believe that many of the goals I have achieved
those around me. It is important to not keep things to yourself
and ask your colleagues for help.

A

corporate value through quick corporate decision

governance, while enhancing corporate governance,

making and by improving the soundness of management

thoroughly practicing compliant corporate management,

in ways that they are adapted to changing social andand building internal systems to prevent risks before theyeconomic conditions. In order to achieve this, we haveoccur. At the same time, we will appropriately disclose

built good relationships with various stakeholders,

information and improve management transparency.

including our shareholders, customers, business partners,

Corporate Governance System
JCU has a Board of Directors as an organization thatstatus of business execution is analyzed and reviewed,

makes decisions on important management matters andand deliberations are carried out on proposals that aresupervises the status of business execution. The Board

to be consulted on with the Board of Directors.

of Directors consists of 10 directors (including 4 outside

In addition, the JCU Group has introduced a Board of

directors), and in principle meets at least once a month.

Auditing Officers system. The Board of Auditing Officers

In addition, we have introduced an Executive Officer

consists of one full-time auditing officer and threesystem for the purpose of building a quick and flexible

outside auditors. In principle, auditing officers holdbusiness execution structure. At the Management

Board of Auditing Officers meetings once a month, as

Strategy Meeting, which meets once a month andwell as attend the Board of Directors meeting to audit

attended mainly by directors and executive officers, thethe legality and validity of business decisions.

◆Schematic of the corporate governance system

General meeting of shareholders
Appointments and removals

Collaborate

has become a frequent topic of conversation in recent

time when the R&D Center was still called the Central Research

be no “discrimination,” but I do believe weLaboratory and located in Fujisawa City, Kanagawa Prefecture.

need “distinction.” There are tasks that

I think the biggest turning point for me was when I becamemen do well in and tasks that women do

General Manager of our Taiwanese subsidiary in April 2020.

better in. In addition, we have people ofSince I was placed in charge of a local subsidiary, I had tovarious ethnic backgrounds working at ouracquire a management perspective, something that I did notoverseas offices. Although working styles

have when I was at the Research Laboratory. It was also avary depending on the industry, I would

Kanae Tokio,

General Manager,
JCU TAIWANCORPORATION

like to promote an environment where

ReportAccounting
auditorboth men and women are able to play anactive role while seeking ways that are
unique to JCU.

Interview date: July 27, 2022

Collaborate

Appointments and removals

Auditing officers

Outside auditing officers:
3 personsInternal directors: 6 persons

Audit

Board of Directors

Internal and externalreporting desk
(outside lawyers)

Collaborate

Legal
Department

Outside directors: 4 persons
Chairperson (CEO)Board ofAuditing Officers
ReportAppointments
and removals

Directors

Full-time auditing officer:
1 person

Audit

Audit

Appointments and removals

Consultation
Recommendation

Reporting andproposals
Supervision

Business divisions
Internal audits

Risk Management Committee
Compliance Committee(Business execution system)

President and CEO
Internal
auditsNomination andCompensation
Advisory
Committee
Internal directors:
1 personsOutside directors:
4 personsOverall
control

GOVERNANCE

between men and women. There shouldstill had to learn.

and refine the various functions necessary for corporate

For example, women playing active roles in business

about 25 years, mainly in the electronics field, since thea clearer picture of what our challenges were and what wecompany grows, we will further strengthen, improve,and considers it a key management mission to enhance

What is your opinion on diversity in the workplace,including the promotion of women?

years, but there are inevitably differences

great benefit for me to see Japan from abroad as this gave mecompliance with laws, regulations and corporate ethics,

in the organization have been possible only with the support ofI have been engaged in research and development forA

24“No one person can ever succeed on their own. An

local communities, and employees. In addition, as the

SOCIALQ

A phrase I keep in mind is what Peter Drucker said,

undertaking succeeds only when one personʼs strength isQ
Can you tell us about your career to date and any work
experiences that may have been a turning point for you?

Are there any words that you keep in mind
throughout your career?

The JCU Group recognizes the importance of

ENVIRONMENT“ensuring diversity” and “promotion of women.”Q

Enhancing Our Corporate Governance

SPECIAL FEATURE

employees are highly aware of safety and health.

The JCU Group has established a system to fulfill its corporate social responsibilities
by maintaining high management transparency and corporate governance functions.

BUSINESS SEGMENT

numbers of people were expected to gather were

Corporate Governance

COMPANY PROFILE / TOP MESSAGE

Healthy Labor-Management Relations

GOVERNANCE

Subsidiaries

25

GOVERNANCE

Initiatives for SDGs
The SDGs consist of 17 goals for realizing a sustainable world.

Centered on our Corporate Philosophy and our CSR Policy, the JCU Group is committed to drive
forward CSR to contribute to the development of sustainable societies.

Corporate Philosophy

The JCU Group will continue its efforts to contribute to these goals as much as possible.
SDG 3

SDG 5

SDG 6

・Soraputi Kidsʼ Camp・Number of employees
・Employee comments

・Water consumption volumes

Decent Work andEconomic Growth

Industry, Innovation
and Infrastructure

Gender Equality

Good Health and Well-Being

SDG 7

SDG 8

Affordable and Clean Energy

Creating the Future throughSurface Treatment Technology

・Make use of renewable energy

Drawing from the knowledge and R&D capabilities we have cultivated over the years,
we will continue to pursue new surface treatment technologies,

・Communities

・Our customers
・Environmentally conscious productsLife Below Water

Life on Land

SDG 14

SDG 13

Climate Action

SDG 15・Environmentally conscious products
・Pollution and waste

・Carbon offsetting

・Carbon offsetting
・Pollution and waste

SDG 17

SDG 16

Partnerships for the Goals

Peace, Justice andStrong Institutions

・Carbon offsetting
・Soraputi Kidsʼ Camp ・Our business partners

・Corporate governanceCommunication with Stakeholders
The JCU Group places great importance on communication with our stakeholders in order to meet the expectationsof society.

CSR Policy

We have esta bli she d f ou r C S R poli c i e s t o1Comply with laws,
regulations,and social rules,
and work to addresssocial demands that
go beyond these rules.

3

Make every effort
to appropriately
communicate
with stakeholders andmaintain relationshipsof trust.

4

Enhance managementtransparency, improve
openness of communication,and conduct corporate
activities in a fair andequitable manner.

We approach matters with “enthusiasm” and serve people with “sincerity.” In other words, we engage in our daily
work with “enthusiasm and sincerity.”・Publication of JCU Technical Reports

・Trade show exhibits

・Individual information exchange

Employees
・Dialogue with the EUCO Association
・Various EUCO Association events
・EAP Program

Shareholders and Investors

Community

・General meeting of shareholders ・Financial results briefings

・Community initiatives

・Shareholder newsletters ・Disclosure ・One on One Meeting

JCU Group

CSR Training

GOVERNANCE

The JCU spirit

Our Customers
・Inquiries

SOCIAL

Continue to provide
better products
and services as an
R&D-oriented
company.

2

Business Partners
・Individual information exchange

ENVIRONMENT

co ntribute to th e su st a i na ble de v e lopm e nt of soc i e t i e s.

SPECIAL FEATURE

support manufacturing, and contribute to enriching the lives of people around the world.

Responsible Consumption
and Production

BUSINESS SEGMENT

grew out of decorative and rust-proof plating technologies.

SDG 12

Sustainable Cities andCommunities

・Respect for human rights

and other industries by providing various surface treatment technologies that・Environmentally conscious products

SDG 11

Reduced Inequalities

Since our company’s founding, we have supported the growth of the automotive, electronics,

SDG 9・Comfortable working environments

SDG 10〜 Explorer in Surface Engineering 〜

Clean Water and Sanitation

COMPANY PROFILE / TOP MESSAGE

CSR Management

The JCU Group holds briefings on CSR at appropriate
times. In FY2021, we partially relied on web conferencing
to explain our CSR initiatives to our offices in Japan andoverseas subsidiaries as part of our internal IR activities.

Internal IR activity at the R&D Center

26

27

GOVERNANCE

Compliance Initiatives

The JCU Group recognizes the importance of its corporate social responsibilities,
and in order to fulfill our responsibilities, has established the “JCU Code of Conduct”
as a code of compliance and ethics.

Promoting Compliance

The JCU Group has established rules and guidelines,

Apart from the internal and external reporting desk,

organizes training, and prepares and distributes manuals

the JCU Group also has a compliance consultation deskin order to ensure that everyone is well-informed onthat makes it easier for persons to seek consultation on

the Basic Code of Conduct which represents our basic

compliance-related questions that they may have about

approach to compliance. In addition, we conduct internal

the company. Information on the compliance consultation

audits of the Group to detect problems at an early stage.

desk is provided in the Compliance Manual posted on

Furthermore, as part of our activities to drive these

Based on the JCU Code of Conduct, the JCU Group

local subsidiaries in light of local customs and laws.

always complies with relevant laws and internal rules

Furthermore, our Corporate Philosophy, CSR Policy,

in all aspects of our corporate activities, and promotes

JCU Spirit, and Code of Conduct are distributed to allcompliance so that all of our corporate activities comply

executives and employees of the JCU Group to ensurewith normal business practices and social ethics.

that they are all well-informed.

system formatted for individual participation.
The Niigata Plant, R&D Center, and overseas

into each language is communicated to respective

handling. We also advance compliance by conducting

by the President and CEO) under the Board of Directors

different areas of laws and regulations. The Compliance

where top management take their own initiative in driving

Management Leaders Meeting discusses the sharing ofcompliance forward. The Compliance Committee ispractical information within the company and mattersmade up of internal directors and a number of Executivethat should be reported to the Committee, and the

Officers. A meeting of compliance management leaders

content of these discussions are promptly reported toappointed by individual departments is installed under

the Committee. The Committee reviews the report fromthis Committee. Compliance management leadersa management perspective, decides what actions to takemake every effort to gather information on legislative

as a company, and has the relevant departments executeon these decisions.

to social order or sound corporate activities, and makeevery effort to eliminate such groups in cooperation withcompetent authorities and relevant organizations.

evaluations of their abilities.

Disclosure on Sustainability Initiatives“global company that continues to grow sustainably,”and has committed itself to manage its business bylinking its operations to ESG and SDGs. A company that
continues to grow sustainably by our definition has thefour attributes listed below, and we have formulated
and implemented strategies to realize these visions in
our Medium-Term Corporate Plan.
◆ The products we sell must meet the needs of the times(aggressive acquisition of IP rights).

We hand out booklets and notebooks to ensure that people are well-informed.

Installation of the Internal andExternal Reporting Desk◆Compliance Promotion System

Board of Directors

For the purpose of detecting and correcting

Reports and proposals

Information
management

Act Against Delayin Payment, etc.,
to Subcontractors

Tax Law,
Company Law

Construction Industry
Act, Electricity
Business Act, etc.

Insurance andpensions

Planning andeducation(based on our contributions to employment equality, regional
revitalization, and economic development).

◆ All

employees must be knowledgeable of corporate
governance and conscious of the issues.

misconduct at an early stage, and to help strengthen our

We particularly focus our efforts on human resourcecompliance, the JCU Group has a desk for internal anddevelopment as a top priority in “building a management

external reporting, and a system for properly acting on

foundation from an ESG perspective” the basic policy ofreports given by JCU Group executives and employees,

our Medium-Term Corporate Plan.

as well as business partners, etc., on legal and regulatory

Subcommittees in each area of laws and regulations(by paying attention to social and environmental issues).

◆ We must be accepted by local communities and society

Regarding the impact of climate change-related risks

violations committed by organizations or individuals.

and profit opportunities on our business activities, we◆Internal and external reporting desk

conduct analyses based on 2°
C and 4°
C scenarios, andNagamatsu & Yokoyama Law Office

Person in charge: Toshihide Yokoyama, attorney-at-law

disclose climate change-related information on thethemes recommended in the TCFD recommendations
on our website.

GOVERNANCE

Compliance management leaders◆We must be able to respond to changes in social conditions

SOCIAL

Compliance Committee28

with antisocial forces or organizations that pose a threat

ENVIRONMENT

revisions and gain an understanding of issues throughLaborgroups in its Code of Conduct. We have no relationships

SPECIAL FEATURE

subcommittees and other organizations for each of theExport and import

The JCU Group has set out the elimination of antisocial

The JCU Group has set forth its vision of becoming a

The JCU Group has a Compliance Committee (chaired

Chemicals

Initiatives to Eliminate Antisocial Groups

checks on the levels of employeesʼ understanding andCompliance Promotion System

Environmentand quality

the intranet to ensure that everyone is well-informed.

BUSINESS SEGMENT

https://www.jcu-i.com/wp-content/uploads/
2017/02/koudoukijunn2021.04.pdf

and Indonesian. The Code of Conduct translatedsites, as well as learning opportunities using an e-learninglaws, and on chemicals that require special attention for

JCU Code of Conduct

Simplified), Korean, English, Vietnamese, Thai, Spanish,education on laws and regulations applicable at different

subsidiaries hold study sessions on business-relatedThis Code of Conduct has been translated into sevenlanguages other than Japanese: Chinese (Traditional andinitiatives forward, we are looking into providing

COMPANY PROFILE / TOP MESSAGE

Compliance

Installed the Compliance Consultation Desk

Suite 603C, 6F, Yaesu Mitsui Building,

2-7-2 Yaesu, Chuo-ku, Tokyo 104-0028
FAX: 03-3516-1140

Email: jcu.hotline@n-lo.com

29

GOVERNANCE

Risk Management

The JCU Group understands the risks that can potentially have a significant impact on the fulfillmentof our business targets and business activities, and formulates risk reduction measures based on thisunderstanding. In addition to establishing an internal system for preventing risks,
we have made necessary preparations and conducted training to minimize damage and loss as muchas possible in the event that a risk should materialize.

Risk Management Structure

To prepare for unforeseen events, the JCU Group has
a Business Continuity Plan (BCP) in place so that we areable to continue our operations and minimize the impact
on our customers even in the event of an emergency. We
hold briefing sessions on our business continuity plan anddistribute booklets explaining the outline of our BCP toraise awareness among employees at all business sites.
The major emergencies that our BCP prepares for

The JCU Group has a Risk Management Committee

and other relevant information are discussed.

include intense earthquakes, storms, floods, fires, IT

Numerous and lengthy discussions will be held from aof Directors. The Committee is made up of internalvariety of perspectives. The content of these discussions

Continuing from 2020, COVID-19 cases continued todirectors and a number of Executive Officers. A meetingis promptly reported to the Management Committee

spread worldwide in FY2021. In response to this majorof risk management leaders appointed by individual

which reviews the report from a management perspective

disaster, the JCU Group took measures to prevent

departments is installed under this Committee. At theto identify the risks that are ultimately key for the JCU

infection including requiring personnel to thoroughly

Risk Management Promotersʼ Meeting, the details ofGroup, and determines the countermeasures to be taken

wash and disinfect their hands, and wear masks.

risks extracted from each department are scrutinized,

at individual departments.

Various infection prevention measures were taken atand the degree of danger, current countermeasures,◆Risk management structure
Performed byindividual departments

Performed by
the Risk Management Committee

Risk survey

Check the status of risk
countermeasures implementation

In FY2021, the Niigata Plant conducted a drill for
setting up an Emergency Response Headquarters.
Under the assumption that a large-scale earthquake
had occurred, simulations were conducted including
on declaring the BCP into effect, checking the damage
in each department, and reporting to the head of the
BCP response headquarters. Through this training,
we identified how each of us would operate in acontingency and what obstacles we would face.
In the event of an emergency, we set up emergency
response headquarters at affected offices, and a BCP
response headquarters at the head office. If this isdifficult to set up at the head office, it is to be set up at
an alternative office in accordance with the manual.

Board of Directors

conferencing and travel restrictions. Overseas subsidiaries
made every effort to minimize the impact of infections on
their businesses by implementing measures in accordancewith infection prevention measures that were required inReports andproposals

SPECIAL FEATURE

Risk Management Committee→ Deemed OK

clarify their roles in the event of an emergency.

domestic and overseas sites, including promotion of web◆Risk management schematic
Reduced risk

failures, and supply chain disruptions.

At JCU, we systematically carry out BCM drills to raiseawareness among executives and employees, and totheir respective countries and regions.

Identify risks

Report on risk countermeasures
implementation
Implement risk
countermeasures

Identify key risks to prioritize
Review proposed countermeasures
for identified key risks

Reports andproposals

Introduced a Safety Confirmation System

Risk management leaderssystem in place that enables us to easily andAs part of our BCP, JCU has a safety confirmation

ENVIRONMENT

Risk Management
Committee
Develop risk countermeasures→ Deemed NG
implementation plan

Risk Management Committee

Prioritize risks

quickly confirm the safety status of our employees

Key risksduring large-scale disasters, or nationwide/global

The Risk Management Committee has identified the following risks as being the 21 key risks for our Company: We will

drills on an irregular basis using this system to prepare

epidemics/pandemics of communicable diseases.

make every effort to continue to strengthen our risk management.
Developments in demand side industries (automotive, electronics)

Securing and developing HR

Fixed asset impairment accounting

Information system failure

Exchange rate fluctuations

Occupational safety and healthTax and transfer price taxation

Products and services

Overseas operations

Harassment

Irrecoverable receivables, etc.

Technical know-how leakPrice fluctuations in held securities

Quality control system

Environmental Conservation

BCM training at the Niigata Plant

GOVERNANCE

Material price fluctuations

Intellectual property protection and infringement

30

for emergencies.

Competition with other companies, delays in new technologies development

Legal regulations

Multiple times a year, we conduct safety confirmation

SOCIAL

Risk Management Committee

BUSINESS SEGMENT

chaired by the President and CEO under the Board

Conducting Drills
COMPANY PROFILE / TOP MESSAGE

Driving Forward Business Continuity
Management (BCM)

Natural disasters, accidents, communicable diseases, etc.
Risks related to management policies and strategies

31