Sustainability Report 2021 (English version)

1

Sustainability Report 2021
(English version)

Corporate Philosophy

VisionTo make contributions for future society through acoustics

Corporate Creed“Sincerity” has been the Foster Group’s
corporate creed since its establishment.
By the term “Sincerity”, we mean the act oftreating all concerned parties of the Company
with a sincere approach. The concept of CSR,
which shares the same basic philosophy
as the corporate creed of “Sincerity”, has
always governed the Company’s corporate
management and business operations since
its foundation.
To continue to grow in the coming age, we
believe it is important for each member of the
Foster Group to act in accordance with the
CSR philosophy, or the corporate creed of“Sincerity”, which we have adhered to since
our establishment.

Sincerity“

MissionThrough acoustic products or its solutions, a total commitment to help create acomfortable life and pleasure of communication around the world. A truly global
enterprise our future society counts on.

Foster Rhythm“Foster Rhythm” is our guide to ensure we all move in the same direction to achieve our goals and dreams so we always move closer to our inspiring “Vision”.
Our “Mission” motivates us to help people achieve new happiness via acoustic technology and our “Values” are guides to filter our choices so our actions support all
stakeholders.
Our “Principles” conduct us to create perfect harmony and achieve the best results together.
Our “Management System” of processes and tools helps us to practice, learn and grow as members of the Foster family, evolving new habits for future success.

- Our Principles and Values -CONTENTS

1

Top Message

2

Corporate Profiles/ Financial
Information/ Corporate History

3

Foster Group ESG Management

5

Environment

10Social14

Governance25

External Recognition

30

Data Table

Corporate
Corporate
Philosophy
Philosophy

31

Top Message

I

THE LEADING

Sound to Life*SOLUTION COMPANY

II

ALWAYS
IMPROVING

III

EVER MORE GLOBAL
AND INCLUSIVE

Strive to be number one in the global acoustic
fields. Innovate to support ever wider market
needs.

Create a more efficient, effective, profitable andbetter place to work. Always seek new market
categories and opportunities.

Embrace diversity and pursue more global
synergy at all management levels.

1. Trusted: Earn the trust of users and partners.

4. Fast and Flexible: Be fast moving and flexible

8. Open Mind: Be open–minded and inclusive

2. Expert: Take pride in our expertise in acoustic

5. Reliable Quality: Deliver totally reliable quality via

9. Responsible: Fulfill our duty to protect people andtechnology

ever more efficient systems

3. Inspiring: Add unique value, motivate partners andexcite customers.

the environment.

6. Proactive: Embrace learning and proactive
leadership

10. Team: Respect others as part of a team withshared goals.

7. Steadfast: Show steadfast dedication in going
beyond our promised goals

Sound to Life*

Corporate Profiles/ Financial Information/
Corporate History

The slogan where Foster Rhythm strives to achieve. In pursuit of our vision “To make contributions for future society through acoustics”,
it means “To deliver sounds to life”, “To enrich life through Foster acoustics”, “Sounds to reach lives and sustain healthy lifestyle”.

Foster Group ESG Management

Environment

SocialGovernance

External Recognition“

Corporate Philosophy

Data Table

Sustainability Report 2021
(English version)

2

Corporate Social Responsibility and Promoting ESG Management

Corporate
Philosophy

CEO

COO

Hiromi Yoshizawa

Atsushi Narikawa

Top
TopMessage
Message

Corporate Profiles/ Financial Information/
Corporate History

The novel coronavirus (COVID 19) has changed theface of today’s world. People are forced to restrict
movements, business activities are impaired, andlogistic movements have been stagnated. Under
such conditions, corporations are subject to severe
scrutiny on whether they take care of their own employees, contribute to local community, or respondto environmental issues.
Foster Group celebrated 70th anniversary in 2019,and have wished to be a corporate citizen that isrelied on and loved by our various stakeholders. We
seek to do this by maintaining the consistent spiritof doing business for society and people based on
our corporate creed of “Sincerity”.
Omi Shonin (merchants from present-day Shiga
Prefecture), used to say that in business you shouldhave “three goods”— good for the seller, good forthe buyer and good for society. I believe that many
corporate entities that have been operating for morethan 100 years secure these “three goods” by making reasonable profits and returning them for thegood of society. Arguably, these movements arebeing accelerated globally in response to the pandemic. Securing these “three goods”, we also aim
to be a centennial company that has a shining presence in the coming new society.
Society is currently experiencing major changes,
and the innovations that fundamentally change ourway of life are progressing at a pace that far exceeds anything that we anticipated. We must makemajor changes as we move forward while continuing to uphold the basic philosophy of “Sincerity” that
Foster has adhered to since its founding.
We announced our medium-term business plan
last year, under which we set a medium-term goal,“Elevate position from OEM/ODM supplier to strategic partner” and a long-term goal, “World’s No.1
‘acoustic’ solution partner”. At the same time, as
ESG initiatives, we set “Zero Emissions” as ourenvironmental target for 2050 and the slogan “Be
Happy 80%*” for our employees. This slogan isbased on our belief that employees are at the rootof all corporate activities and companies that cannot
make their employees happy cannot promote ESG,
either. We will continue to actively promote humanresource employment worldwide and diversity tocultivate truly global and sophisticated human re-

Foster Group ESG Management

Environment

Socialsources. In addition, by further promoting “work-stylereform”, we would like to offer an environment wheremore employees feel that they can work flexibly andfreely, thus cherishing our employees and achieving
the goal of “Be Happy 80%*”.
*“Be Happy 80%”: The ideal environment that wewould like to achieve company-wide, which was presented by a team of young employees during internal
leadership training. It refers to a working environmentand corporate body where 80% of our employees
can feel 80% happiness. We agree with that opinion.
It is not 100%, which reflects our consideration of our
stakeholders other than ourselves.

Recognized for such efforts, we were selected as
an outstanding enterprise under the “New Diversity
Management Selection 100”, “Health and Productivity Management Outstanding Organization (White
500; Large Enterprise Category)” by the Ministry of
Economy, Trade and Industry, and “Top 100 Telework
Pioneers” by the Ministry of Internal Affairs and Communications. We were also awarded the “Kurumin
Certification” (Ministry of Health, Labour and Welfare)and the “Certification of Excellent Company in Health:Gold Accreditation” (Tokyo Promotion Council for
Healthy Company Declaration), among others. We
will continue those efforts in the future.
Foster Group has signed the “United Nations Global
Compact” since 2017. This year, we joined the Japan
Climate Initiative, where enterprises and organizations actively involved in activities to address climatechange provide information and exchange opinions.
Further, the foster Group announced its ESG Management Statement in March this year. We vowed tokeep the promotion of ESG management at the coreof our company policy and declared Foster’s commitment to fostering a healthy corporate climate, driving
further work style reform, ensuring thorough quality
control and risk management, and working to solve
social issues.
We will cherish our employees and instill our corporate philosophy further among them to reinforce ourcorporate foundation.
We will continuously strive to offer satisfaction to ourvarious stakeholders, and to become an enterprisethat is loved by society.

Governance

External Recognition

Data Table¥85,220

¥85,22020.6¥0

3 ¥0.10

millionSustainability Report 2021
million% y-o-y)(English version)

(down

(down

About Foster(down

20.6% y-o-y)

(down

100

Overview by Segment
Overview by Segment(Consolidated)(Consolidated)
Speaker
Segment
Speaker
Segment

Foster Electric was founded as a loudspeaker manufacturer in 1949.
M
Since that time, we have established ourselves as a specialist in audio technologies, and have provided the audio industry with many products and technologies.
Net Net
66.5%
N
66.5%
Among them, acoustic transducers have become our mainstay products. We have created a wide array of unique technologies and accumulated broad expertise,¥56,736million
million¥56,736ssalessales
including in automotive speakers and other automotive audio products, audio equipment (AV speakers) for home entertainment, high-end
Hi-Fi
speakersystems,
Financial Highlights Consolidated Performance for the Fiscal Year ended March
headphones and headsets, compact speakers for information equipment, buzzers, and vibration actuators that apply audio technologies. With these technologies andaccumulated expertise as our backbone, we provide quality, optimal acoustic experiences that fulfill the expectations of our customers. Products
Foster Electric Operating income
Netfromsales
Ordinary income
have been used in many products around the world. They contribute to society by providing audio and vibration solutions through the products of our clients’ brands.

¥85,220(down

Sales/Development BasesGroup companies
The Group operates 38 bases in 12
countries and regions worldwide
as bases for development,
manufacturing and sales bases.

Sales Bases

Manufacturing Bases

20.6% y-o-y)

¥0.7

(down

Overview by Segment(Consolidated)
Speaker Segment

bases

Net
sales

JAPAN

8

We have established a sophisticatedproduction system integration
processes from components
manufacturing to finished goods
manufacturing.

Financial bases
Highlights(down

100.0% y-o-y)(down

million91.6% y-o-y)

Mobile Audio Segment¥56,736 million 66.5%

Net
sales

O

¥21,574 million 25.3%

Consolidated Performance for the Fiscal Year ended March 31, 2021

Net sales¥85,220¥219

million

OthersEUROPE2

millionOperating income¥0.7

million20.6% y-o-y)(down

million100.0% y-o-y)

Net loss attributable toowners of the parent

Ordinary income¥219

AMERICAS8-¥3,363

million(Net income of(down 91.6% y-o-y)bases

million¥1,565 million

in the previous fiscal year.)

ASIA (excluding Japan)

Overview by Segment(Consolidated)bases
Speaker Segment

20

Net
sales

Mobile Audio Segment¥56,736 million 66.5%

Net
sales

¥21,574 million 25.3%

Other Segment
Net
sales

¥7,244 million

8.2%

ConsolidatedPerformance
Performanceforforthe
theFiscal
FiscalYear
Yearended
endedMarch
March31,
31,20212021
FinancialHighlights
Highlights Consolidated
Financial

NetsalessalesNet¥85,220¥85,220

millionmillion20.6
y-o-y)
20.6%%
y-o-y)

(down
(down

Overviewby
bySegment
Segment
Overview(Consolidated)(Consolidated)
Corporate
Top Message
Philosophy
SpeakerSegment
Segment
Speaker

Operatingincome
incomeOperating

Ordinaryincome
incomeOrdinary

¥0.7
¥0.7

¥219
¥219

millionmillion100.0
y-o-y)
100.0%%
y-o-y)

(down
(down

millionmillion91.6
y-o-y)
91.6%%
y-o-y)

(down
(down

Net
loss
attributableNet
loss
attributabletoto
ownerstheparentownersofoftheparent-¥3,363-¥3,363

millionmillion(Net
incomeof ¥1,565
million(Net
incomeof ¥1,565
millionprevious
fiscalyear.)
in inthetheprevious
fiscalyear.)

Note: The figure above includes intersegment sales.

Corporate Profiles/
Financial Information/
Corporate
Profiles/Financial
Corporate History
Information/Corporate
History

MobileAudio
AudioSegment
Segment
MobileFoster Group ESG Management

OtherSegment
Segment
Other

Environment

SocialGovernance

External Recognition

Data Tables

4

Sustainability Report 2021
(English version)Company Information

Stock Information
Directors and Corporate Auditors (As of June 23, 2021)

Company Profile (As of March 31, 2021)

Status of Shares (As of March 31, 2021)
Total number of sharesauthorized to be issued by
the Company

Company Name

Foster Electric Company, Limited

CEO

Hiromi Yoshizawa

Senior Executive Officer

Hidetoshi Shirakawa

FoundedJune 20, 1949

COO

Atsushi Narikawa

Senior Executive Officer

Tatsuhito Tanaka

Common Stock¥6,770,360,135
Listed on the First Section of the Tokyo Stock Exchange

Senior Managing Director

Lu San Tie

Senior Executive Officer

Yasuhide Takahara

Managing Director

Kazuhiro Kishi

Senior Executive Officer

Headquarters

1-1-109, Tsutsujigaoka, Akishima City, Tokyo, 196-8550, Japan
Phone: +81-42-546-2311 (main number)

Director

Hiroki Miura

Executive Officer

Akihito Mochizuki
Terushige Nagasawa

25,000,000 shares

Independent Director

Minoru Matsumoto

Executive Officer

Naoki Kanai

Number of shareholders

Independent Director

Yasuhiro Goto

Executive Officer

Yuji Harada

5,755

Independent Director

Kaoru Chujo

Executive Officer

Yuji Sakuta

Independent Corporate
Auditor (Standing Corporate Auditor)

Satoko Kimoto

Executive Officer

Hiroyuki Asada

Corporate Auditor (Part-time)

Tsutomu Inokuma

Number of Employees: 18,611 (Number includes our outsourcee in Panyu, China)
URL

https://www.foster-electric.com/

Major Shareholders

Distribution of Shareholders by Shareholder Type80,000,000 shares

Foreign entities, etc.
38 %Financial
institutions
40.1 %

Number of Shares Held Ratio of Shares Held

Shareholder’s Name

Individuals
and others
14.8 %(thousands)

(%)

2,643
1,037
1,016
945
857

11.8
4.6
4.5
4.2
3.8

State Street Bank and Trust Client Omnibus
Account OM02 505002

606

2.7

The Bank of New York Mellon 140042

478
405
388
336

2.1
1.8
1.7
1.5

The Master Trust Bank of Japan, Ltd. (trust account)
Custody Bank of Japan, Ltd. (trust account)

Total number of shares issued

Mizuho Bank, Ltd.
Securities companies 3.4%

MUFG Bank, Ltd.

Domestic corporations, etc. 3.7%

Custody Bank of Japan, Ltd. (trust account 9)* Excluding treasury stock

Executive Officer

Oh In-Yong

Independent Corporate Auditor Takuma Ino

Executive Officer

Nguyen Quan Hoang

Independent Corporate Auditor Takashi Suzuki

Executive Officer

Tan GuiHai

The Bank of New York Mellon 140044

Executive Officer

Wong Wing Chung

State Street Bank and Trust Company 505001

Mizuho Trust & Banking Co., Ltd.

Treasury stock (2,645,024 shares) is excluded for the calculation of the “Ratio of Shares Held”.

Corporate History

2012

1988
1989

1949
S. Nishimura andH. Shinohara
established
Shinano Onkyo
Institute

1982

1959

Renamed Foster ElectricCo., Ltd.

G-205 Speaker
loaded into Japan’s
first transistor radio

Fostex Corp.
establishedBegan production in
Vietnam to meet risingdemand forheadphones andheadsets

Began productionof headphones,
microphones, andspeakers in Panyu,
China

Began supplying car
speakers

Merged with TonegenCo., Ltd.

・Converted Korea-based ESTecCORPORATION into a
consolidated subsidiary・Began online sales ofcustom-made headphones“KOTORI”

Transferred from theSecond Section to
the First Section of
the Tokyo Stock
Exchange

1973
1986

1955

Headquartersfunctionsrelocated to thecurrent location,
Tsutsujigaoka,
Akishima City
(headquarters
relocated in 2013)

2006

1999

Top Message

Corporate Profiles/
Financial Information/
Corporate
Profiles/Financial
Corporate History
Information/Corporate
History

Foster Group ESG Management

Environment

70th anniversary

・Took over the micro acoustic
components business from STAR
MICRONICS CO., LTD.
・Acquired shares of SUZUKI KANSHI(THAILAND) CO., LTD.

2014
2009

Corporate
Philosophy

2019

Hiromi Yoshizawa was
appointed as CEO
Atsushi Narikawa was
appointed as COO

2020

2017

SocialGovernance

External Recognition

Data Table

Sustainability Report 2021
(English version)

Foster Group ESG Management
Since its founding in 1949, the Foster Group has aimed to
become indispensable to society, and has continued to growand develop under its corporate philosophy of “Sincerity”.

Atsushi Narikawa, COO

In 2016, the Group established the “Foster Rhythm”, which was formed to make its corporate philosophies easier-to-understand, and distributed it internally. It was created and promoted by the employees
themselves, who recognizes the increasing importance of the future corporate activities that our global
employees empathize and embody its corporate philosophies.
It contains not only the corporate philosophies but also the strong “desire” and “wish” its employees truly
want to achieve, such as, “a workplace full of team spirit where employees can work freely”, and “pride
as a professional, which people always desire”.
The Foster Group and all of its directors, officers and employees hereby declare that we will engage in“corporate activities with sincerity” in accordance with the ESG Management Statement below. We will
also continue to enhance corporate value by appropriately addressing the expectations and needs of our
stakeholders.

Top Message

Corporate Profiles/ Financial Information/
Corporate History

In March 2021, we established the Foster Group ESG Management Statement. It expresses in concreteterms what we want to be like toward the achievement of sustainability, which will be the guidepost forour promotion of ESG management.

At the Foster Group, our ESG initiatives stem from our corporate creed of “Sincerity”. The “Sincerity”,
is defined in Foster Rhythm* as “Always tell the truth, be kind to others as well as the planet, andserve with all your heart”.
Foster believes that its employees play the central role in ESG activities. A company cannot promote
ESG if it cannot make its employees, who are at the root of all corporate activities, happy. Based on
this idea, we have positioned “Be Happy 80%” for employees as the base point of our ESG activities. We would like to contribute to a future society to fulfill the expectations of all the stakeholders
We believe that 80%, not 100%, is the benchmark for happiness. We have left room to consider thesatisfaction of other stakeholders as well as that of our company and ourselves.

We have also clearly stated “Be Happy 80%” for employees as our ESG initiative. This is because the
COVID-19 pandemic had a negative impact on the world in 2020 and companies’ attitudes toward theirsocial responsibilities, which they are required to fulfill, are being put to the test. This has led us to thinkthat now is the time to position employees, who actually carry out the ESG activities, and their happinessat the heart of our corporate activities. “Be Happy 80%” reflects the feelings of Foster employees, who
are considerate of others and attach importance to team spirit. We would like to cherish these feelings in
our management all the more because the world is said to be increasingly divided.

Corporate
Philosophy

ESG Management Statement

Foster Group ESG Management Statement

Celebrating 70th anniversary in 2019, and further “aiming to
be a centennial company”, the Group will continue to adhere
to management based on “Sincerity”, that is, “always convey
the truth and offer human- and environmentally friendly products and services to all stakeholders with cordiality”.
We established our ESG Management Statement along withthe formulation of medium-term business plan, thus announcing Foster’s commitment to promoting ESG, both internallyand externally. We reorganized the CSR Committee andrenamed it the Sustainability Committee, thus sharing the targets we should aim to achieve company-wide and clarifying
the company-wide structure for working to achieve them.

5

FosterGroup
ESGManagement
FosterGroup
ESGManagement* Foster Rhythm: Corporate philosophies including the corporate creed of “Sincerity” which were expressed inplain words by our employees, so they will be understood by our global employees

Foster is strongly committed to ESG and aims to achieve the following
from a long-term perspective.
1. Initiatives to promote “Decarbonized Society”, “Resource Recycling”, and “Harmony with Nature”
and tireless efforts to achieve “Zero Emissions”
2. Exciting, unrestricted work styles appropriate for each life stage and goal in life
3. A society where people with diverse attributes, such as age, gender, nationality, and creed,
respect each other and accept each other as they are
4. A true expert trusted by customers and business partners
5. Having “Zero Defects” established in various aspects, including product quality and businessquality
6. Improving the quality of people’s lives by providing solutions through sound and vibration
technologies
7. Implementing strict risk management and enhancing the compliance structure, which contributes
to strengthening corporate governance⇒ Enriching people’s lives with the power of sound and vibration and delivering happinessand sustainable future to all stakeholders -- this is what we desire to do at Foster.

Environment

SocialGovernance

External Recognition

Data Table

Sustainability Report 2021
(English version)

Promoting ESG Management in Foster GroupThe Foster Group issued the first version of its CSR Charter in 2006. We updated it to pursue global
versatility and universality in 2010, by incorporating the EICC* Code of Conduct, the CSR standards
established by U.S. Electronic Industry Citizenship Coalition, as our basic policy. Items originally set out by
the Company have also been added to the Code for reinforcement of the Group’s ESG management. In
addition to these efforts, we also promote ESG management in compliance with the United Nations Global
Compact and the ISO 14001 standards.
* Electronic Industry Citizenship Coalition (renamed Responsible Business Alliance in 2017)

Foster Group ESG Management System
As shown in the following “ESG Management System”, the Foster Group has established the Sustainability
Committee (*) with representatives of related sections as core members, at its headquarters.
Sustainability Committee meetings are held monthly with the attendance of sustainability officers fromthe headquarters as well as staff at overseas bases via video conferencing to ensure the monitoring
and collaborative promotion of ESG management on a group-wide basis, including overseas businesslocations, each of which has an appointed person responsible for the promotion of sustainability activities.
* CSR Committee was renamed “Sustainability Committee” in June 2020.

6

Global Sustainability Communication Meetings
We held Global Sustainability Communication Meetings at Japan headquarters and overseas groupcompanies of six major regions during Nov-Dec., 2020, attended by the sustainability officer fromheadquarters, sustainability representatives and staff from each site via TV conference system. By directly
exchanging information and opinions on our global activities including supply chains, we aim to strengthen
our ESG management system.

Materiality (Priority Issues)
We reviewed our materiality (priority issues), which we developed in 2017, and revised them in March
2021. In developing materiality items, we conducted backcasting from our ESG Management Statement
and medium- to long-term goals under the mid-term business plan and listed the items (priority issues) thatshould be addressed first by reflecting expectations of our stakeholders, including customers and externalrating companies. Further, the ESG Promotion Task Force, consisting of staff and managers in each
ESG field, held discussions, and materiality items were determined and approved by the Sustainability
Committee and the Board of Directors.

Environment (E)Social (S)Decarbonized Society

Product Quality
and Safety

Governance (G)General Meeting of Shareholders
Board of Statutory Auditors

Board of Directors

Accounting Auditor* CO₂ Emissions (Scope1, 2, 3)

PresidentInternal Audit Department
Sustainability
Officer

Resource Recycling

Sustainability
Committee* Resource saving products
・Solder-less, adhesive-less,lightweight* Production process improvement
・Reduction of waste emissions(Reduction of hazardous waste)
・Circulation of water resources
related to papermaking

ESG Promotion Department

Sustainability
Representative

Corporate divisions and business divisions
Quality Assurance
Division

Human Resources &General Affairs Division(Including environmental
department)

Corporate
Philosophy

Top Message

Relevant committees
Compliance Committee
Risk and Crisis Management Committee
Environment Committee
Health and Safety Committee, etc.

Supply Chain
Management

Governance
Enhancement

Creation of Exciting
WorkplaceGroup companies

Corporate Management
Division

Production Division(Including legal affairs
department)(Including procurement
department)

Sales DivisionCorporate Profiles/ Financial Information/
Corporate History

Engineering Division

FosterGroup
ESGManagement
FosterGroup
ESGManagement

Harmony with Nature* Management of chemical
substances (no legal violation)

Environment

SocialDiversity andInclusion

Governance

External Recognition

Data Table

Sustainability Report 2021
(English version)

7

Our Approach to Materiality (Priority Issues)
ESG

Materiality

TargetReduce CO2 emissions (Scope 1 and 2)

Environment (E)GHG (greenhouse gas)
Reduction

Environmentally Friendly
Products

Development of environmentally
responsible products

Social (S)Diversity

Decent Work

Sustainable Supply Chain

Governance (G)Quality (Product Safety
and Reliability)

Governance
Enhancement

Corporate
Philosophy

Absolute CO2 emissions: Reduce by 1%
from the previous fiscal year
(Yr 2025 target: Reduce 30% from a
FY2018 base-year, Yr 2030 target: Reduce
50% from a FY2018 base-year)

Absolute CO2 emissions: Reduced by 12%

Reduce the weight of speakers
Develop element technologies to achieve
further weight reduction

Technologies developed for weight reduction
Number of technologies: 2- New frame material- Magnetic circuit structure

Reduce the use of VOCs
The ratio of toluene-free new mobile audio
products: FY2020 target: 25% (FY2025
target: 100%)25% (as of March 31, 2021)

Increase the ratio of environmentally
responsible speakers*
The ratio of environmentally responsible
car speakers (per sales): FY2020 target:
12% (Yr 2025 target: 20%)

12% (as of March 31, 2021)

Page
11

Page
12

* Environmentally responsible speaker: A speaker with any environmentally friendly element, such as light weight and reduced applications of VOC or solder

Penetration of corporate philosophy is growing even more important than before while
・Held workshops for new employees and mid-career employees.
work style reforms are greatly accelerating and the method of communication between
・Held get-together sessions of new employees, executives, and senior employees
employees is changing markedly in response to the COVID-19 pandemic. Promote events(from new/future leaders programs).
and measures to play a role in redefining the new communication and a sense of unity.
・Promoted communication by holding interim feedbacks.
・Held town hall meetings (basic and practical lessons on mid-term plan).

Penetration of Corporate
Philosophy

CorreRefer
sponding
to
SDGs

Achievements until FY2020

・Introduced an executive mentor program (one-on-one mentoring of young employees).
・Lectures were given by executives to mid-career employees.
・Held workshops on production of speakers.
・Conducted a stress check and an employee satisfaction (engagement) survey.

・Female manager ratio (headquarters)
・Ratio of overseas human resources(headquarters)
・Employment rate of persons withdisabilities (headquarters)

30% by Yr 2021
30% by Yr 2024
More than 2.3% of the legal employmentrate

12.6% (as of April 1, 2021)
10.3% (as of March 31, 2021)
2.2% (as of March 31, 2021)
・We implemented our first summer internship program for English-speaking human resources with an MBA. This did not result in employment but helped attract overseas
human resources.

・Rate of paid holidays taken(headquarters)
・Total working hours (headquarters)

FY2020 Target: 83%
Monthly average of 153 hours or below and thereturn of profits obtained by reducing overtime work

50.0% (FY2020 result)Monthly average of 139.4 hours (FY2020 result)* Rate of paid holidays taken and total working hours decreased significantly because of the group-wide holidays in the COVID-19 pandemic.

・Rate of specific health guidance taken(headquarters)
・Rate of periodic health examinations
taken (headquarters)
・Displaced worker due to nursing care(headquarters)
・Promote the creation of systems and an
environment that permit flexible, diverse
work styles and enhance the nursing careleave system.

80%

63.3％

Maintain 100%

100% (FY2020 result)

Maintain 0%

0% (FY2020 result)- Took the COVID-19 pandemic as an opportunity to rapidly accelerate work style reforms.
- Built an environment for working from home with initiatives such as lending mobile Wi-Fi routers, introducing a work from home allowance, and improving the VPN
environment.
- Launched Shigoto Rakuraku Project (easy work project). Promoted the scrapping of the seal-stamping system, the use of Google drive, introduction of super-flexible
working hours without core time, and efficiency improvements of meetings, among other initiatives.

SAQ response rate from suppliers・Existing suppliers: 91% or higher
・New suppliers: 100%

93%
100%

Response rate for the conflict mineralsurvey collected from suppliers・Existing suppliers: 99% or higher
・New suppliers: 100%

99%
100%

The number of failures with a serious social
impact (human life, property, environmentand so on)

Maintain 0 failures

0 failures

Reinforcement of compliance・Implemented a compliance test (response rate: 100%) and a compliance survey (response rate: 100%).
・Held “Compliance Hotline” and “Harassment Helpline” briefing sessions for employees to make sure that they fully understand the internal whistleblowing system.
・Held compliance training on the Subcontract Act and export management.

Enhancement of risk and crisis management

・Monitored BCP reviews, supplier BCP building, and information security management system reviews, etc. as key risk items.
・Held meetings of the Risk and Crisis Management Committee on a weekly basis and built a structure for a prompt response that gives top priority to the safety andsecurity of employees, as measures to tackle COVID-19.
・Departments and business locations collected and shared information about customers and suppliers etc. and responded to risks in timely, appropriate, flexible manners.

FosterGroup
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FosterGroup
ESGManagement

Pages
19 - 20Page
16・Increased the number of Independent Directors by 1 and appointed a new Independent Corporate Auditor (female) to strengthen management and promote diversity.
・Enhanced business execution reporting and increased time for discussing management issues.
・Developed and announced a mid-term business plan by reflecting the advice given by independent officers proactively based on their knowledge.

Corporate Profiles/ Financial Information/
Corporate History

Pages
18 - 19Pages
14 - 15

Enhancement of corporate governanceTop Message

Pages
20 - 21

Environment

SocialGovernance

External RecognitionPages
26 - 27

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8

Sustainable Development Goals (SDGs)

United Nations Global Compact (UNGC)

The Foster Group will continue to promote the Sustainable Development Goals (SDGs), which are proposed by the United Nations, and conduct CSR activities through the UNGC framework.

About United Nations

The Foster Group signed and joined

What Are Sustainable Development Goals (SDGs)?

Global Compact

the “United Nations Global Compact

In 2015, “United Nations Sustainable Development Summit” was held at the United Nations Headquarters. With more than 150 leaders from member countries participating, “Transforming Our World: the2030 Agenda for Sustainable Development” was adopted as its resolution. The Agenda made declarations and set goals as an action plan for people, the planet and prosperity. They are known as “Sustainable
Development Goals (SDGs)”, which consist of 17 goals and 169 targets.
Source: United Nations Information Centre website(UNGC)”, the world’s largest corporate
sustainability initiative promoted by theUnited Nations, on January 19, 2017.
As a company that operates globally, we
support the 10 principles of the UNGC
of “Human Rights”, “Labour”, “Environ-

United Nations Information Centre: Sustainable Development Goals (SDGs)
https://www.un.org/sustainabledevelopment/

ment” and “Anti-Corruption” and conduct activities for compliance, decent
work, care for the environment, and CSR
procurement, etc.

Activities as a

We are participating in the “Human-rights Education Subcommittee”,

member of the“Environmental Management Subcommittee”, “WEPs Subcommittee”,

Global Compact“Supply Chain Subcommittee”, “DRR (Disaster Risk Reduction) Sub-

Network Japan

committee”, “ESG Subcommittee”, “SDGs Subcommittee”, “Reporting(GCNJ)

Study Subcommittee”, “Subcommittee to Cultivate Awareness of the
Global Compact”, “CSV Subcommittee”, and “Circular Economy Subcommittee” of the GCNJ, which are composed of the member companies of the UNGC (as of July 2021). The subcommittees not only
share the CSR-related latest trends and study cases of each company
through lecture meetings by influential individuals but also are working to produce various kinds of outputs that support CSR activities ofvarious companies based on the member companies’ experiences in awide range of industries. In addition, the knowledge obtained throughthe subcommittees is reflected in our CSR activities.

Corporate
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Corporate Profiles/ Financial Information/
Corporate History

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Sustainability Report 2021
(English version)

Our Actions on SDGs
SDGs

Activities

Business

SocialContribution

Refer to

SDGs

Activities

Business

SocialContribution

In-house

Refer to●Page 19

Donation activities for low-income households,
assistance with food, clothes, necessities, etc.

●

Pages
23 - 24

Education on promoting diversity
Implementation of intercultural communication
trainings

Participation in a blood donation program

●

Pages
23 - 24

Management of chemical substances●

Page 11

Page 20

Promotion of recycling●

Page 11

Implementation of the “Health Point System” and“Smoking Cessation Support Program”●

Acceptance of student interns●

Page 19

Environmentally friendly products●

Page 12

Donation of scholarship

●

Pages
23 - 24

CO2 reduction●

Page 11

Promotion of clean energy use●

Page 11

Environmentally friendly products●

Page 12Opening of an intranet on diversity to provide
information or supporting women’s active
participation

Corporate
Philosophy

In-house●

Page 19

Water risk management●

Page 11

Planting activities●

CO2 reduction●

Page 11

Basic policy on conflict minerals

Management of environmentally hazardous
substances●

Page 11Governance structure

Page 13●

Page 15●Pages
25 - 29Work style reform project

●

Pages
19 - 20

CSR assessments and audits●

Page 14

Reduction of scheduled working hours●

Page 19

Responsible procurement

●

Pages
14 - 15

Enrichment of holiday/leave programs●

Page 20

Lifting the ban on second jobs●

Page 20

Personnel system with multiple courses●

Page 21

Technical master system●

Page 21

Top Message

Corporate Profiles/ Financial Information/
Corporate History

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10

Environment
Environmental Philosophy and Policy

Revision of Environmental て、ISO14001
Philosophy
and Policy
認定証を提示しています。

Environmental Philosophy

We have been engaged in environmental activities under our Environmental Philosophy and Environmental
Environmental
Philosophy
Policy since 1993. In 2009, we set our global CO2
reduction goal, under which we have continued acEnvironmental Policy
tivities to reduce CO2 emissions. In 2020, we set our
Preface
mid-term environmental goals for 2025.
Item 1:
Continuous improvement of environmental management systems and cooperation with stakeholders
And in March 2021, we revised the Foster Group’s
Environmental Philosophy as well as the preface andsix items of its Environmental Policy, so as to clarify
Item 2:Item 3:Item 4:
Decarbonized society
Resource recycling
Harmony with nature
the long-term direction of environmental issues andthe mid-term environmental goals for 2025, which
Item 5:Item 6:
Compliance with laws
Human resources development
Foster aims to follow.
and regulations
The Environmental Philosophy shows the goals of
our environmental activities while the preface of theEnvironmental Policy shows the direction of such activities.
The six items of Environmental Policy show the prerequisites for achieving the goals, three mid-term
environmental goals, and the factors for achieving them, which are reflected in the Foster Group’s
environmental management system.

As a global corporation in the acoustic industry, Foster Group contributes to the realization of a sustainable
society in all fields of corporate activities by considering the harmony between; The activities under thecompany vision of “To make contributions for future society through acoustics”, and Environment as oneof essential tasks.

Environmental Policy- Preface Foster Group aims to contribute for “Decarbonized society”, “Resource recycling” and “Harmony withnature”, by pursuing eco-friendly technologies in the lifecycle of our products, and people of Foster Groupact with priority on eco-friendliness.
1. We contribute to the realization of a sustainable society by continually improving our environmental
management systems, and by communicating and cooperating with our stakeholders proactively.
2. Realization of “Decarbonized society”
We reduce CO₂ emissions throughout our value chain including procurement of raw materials,
manufacturing, transportation, selling and disposal of our products.
3. Realization of “Resource recycling”
We strive for the waste reduction by promoting effective use of resources in our group-wide activities
and product development. We also use water resources responsibly in our manufacturing processes.
4. Realization of “Harmony with nature”
We strive for the promotion of activities considering Biodiversity conservation, prevention of pollution
and environmental load reduction by chemical substance management.
5. We comply with domestic and international environmental laws and regulations and otherrequirements related to our group-wide activities.
6. We develop human resources who practice environmental activities through enlightening people
involved in group activities and educating employees.
【Issued following the approval by senior management in July 1993. Revised in March 2021.】

Environment Management System and ISO 14001 Certification
We have obtained ISO 14001 certification at headquarters and all overseas manufacturing sites and embody
the Foster Group’s Environmental Philosophy and mid-term environmental goals. At the headquarters, wemonitor the activities conducted at each site and check their results.
The headquarters defines the Head Office of Foster Electric (1-1-109, Tsutsujigaoka, Akishima City, Tokyo,
Japan) as a registered organization and promote activities while maintaining the environment management
system.
We present the ISO 14001 certification at the request of stakeholders.

Corporate
Philosophy

Top Message

Corporate Profiles/ Financial Information/
Corporate History

Foster Group ESG Management

しMid-Term Environmental Goals 2025
To achieve the mid-term environmental goals 2025 that we set last year, we continue activities to reduce
the environmental load from a lifecycle perspective, by working together with manufacturing sites.
Goals
Item 2 ofEnvironmental
PolicyItem 3 ofEnvironmental
PolicyItem 4 ofEnvironmental
Policy2020 - 2025

Decarbonized CO₂ emissions reductionsociety(Scope1, 2, 3)

Resource
recycling

Resource saving
products

FY2020 result

Scope 1, 2: Reduce absolute CO₂ emissions by 30%* from a 2018 base-year
Scope 3: Reduce absolute CO₂ emissions by 3% from a 2018 base-year- Establish technology for eco-friendly products

Improvement of
production process- Reduce the hazardous waste generated by 5% from a 2018 base-year

Management ofchemical substances- Build global management system based on the company standards andregulations- Reduce water consumption (Efficient use of water resource)

See page 7 ofthis report.

Harmony with
Biodiversity conservation - Establish a biodiversity policy and the mid-term action plannaturePartnership with
- Build a cooperative structure and implementation of activities with our suppliers
stakeholders* We revised the 2025 reduction target of Scope 1 and 2 emissions, reflecting the revised mid- and long-term CO2 reduction goals for 2030 (page 11).

Environment
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Environmental Activities
Setting Mid- and Long-Term CO2 Reduction Goals
The Foster Group revised its mid-term environmental goals for 2030
(Scope 1, 2) in line with the 1.5-degree goal of the Paris Agreement,
aiming to build a decarbonized society. We have also set a newlong-term goal for 2050. We aim to achieve carbon neutrality on
CO2 reductions as part of zero emissions initiatives under the ESG
Management Statement (page 5).
<Mid-Term Reduction Goals for 2030>- Scope 1, 2: Reduce absolute CO2 emissions 50% by 2030 from a2018 base-year- Scope 3: Reduce absolute CO2 emissions 15% by 2030 from a2018 base-year<Long-Term Reduction Goal for 2050>- Aim to achieve carbon neutrality by 2050

CO2 Reduction (Scope 1, 2)
The Foster Group’s absolute CO2 emissions in FY2020 were 12%less than the previous fiscal year, partly reflecting restrictions on production activities amid the COVID-19 pandemic. However, emissions
intensity per unit of revenue increased 10% year on year. For Scope
3 emissions, the data can be found in the Data Table at the end of
this report.
CO2 Emissions(t-CO2)(t-CO2/100 million yen)

120,000
100,000

100

93,948 90,999
88,823 90,877 90,209

80,00080

72,868

56.6

61.4

56.5

48.1

60,00059,747

60

51.9

48.8

46.5

55.7
52,31940

40,00020

20,000
0

0
2013

2014

2015

2016

Scope 1+2 total

2017

2018

2019

2020

11

Water Risk Management

Environmental Consideration at Headquarters

Each site manages water withdrawal and discharge by setting theirstandards based on local laws and regulations. The headquarters
uses “AQUEDUCT”, a water risk assessment tool of the World
Resources Institute (WRI), to understand the local water risks at eachsite. Since 2020, we have been addressing water risks by including“Reduce water consumption” in the mid-term environmental plan.

Our headquarters employs environmental load reduction technologies
such as lighting control by daytime sunlight, air conditioning byoutside air, ice thermal storage air conditioning system, and doubleskin façade. Electricity consumption is controlled further by limiting
maximum power consumption during the day, promoting Cool Biz
and Warm Biz campaigns, turning off all the lights in the building forlunch breaks, and having employees work from home in responseto the COVID-19 pandemic. The headquarters strongly promotes
active participation in climate control measures by procuring clean
energy prior to the other sites in the Group.
We have also renewed the design of the reusable cup for coffee
and other drinks offered at the coffee shop. (Disposable plastics andpaper cups have been abolished). Thus, we have continued to tackle
the marine micro plastic problem and save resources.

External Communications
Decarbonization Management Promotion Network
We participate in the “Decarbonization Management Promotion
Network”, which is a part of the “Program for Enhancing Corporate
Value through Decarbonized Management” promoted by the Ministryof the Environment, as a target-setting member. (The following site
is in Japanese.)
URL: https://www.env.go.jp/earth/ondanka/supply_chain/gvc/
Japan Climate Initiative (JCI)
Last year, we joined the Japan Climate Initiative (JCI) by agreeing
to its declaration of “Joining the front line of the global push fordecarbonization from Japan”. (The following site is in Japanese.)
URL: https://japanclimate.org/

New reusable cup

Chemical Substance Management

Initiatives to Achieve Zero Waste Emissions

The Group has set forth its autonomous management standard, whichreflects the applicable laws and regulations of countries, including the
RoHS Directive and REACH regulations, and customers’ requests
for handling environmentally hazardous substances contained in its
products to minimize their impact on the environment. We eliminate
any controlled substances from our products by managing applicableparts and/or materials purchased. Based on the aforementioned
scheme, we have established an optimum management system
for the efficient search and collection of information about chemical
substances that are contained in parts and materials and precise
communication of information necessary in the supply chain.
In addition, to ensure communications of related information, we
provide our suppliers with briefing meetings every year primarily at
our overseas sites.

At headquarters we are engaged in the recycling of waste (waste that
contains recyclable elements) through the sorting and separation ofregular waste, plastics and industrial waste, together with comprehensive awareness raising activities.
Assembled products and parts are being recycled into raw materials
through professional recycling (14 tons/year), as part of our continuing activities aiming to achieve zero waste emissions from our business activities.

Emission intensity perunit of revenue

Recycled materials being carried out

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Environmentally Friendly Products

12

Headphones and Headsets
For headphones and headsets, we have been active in incorporating environmental considerations in our
product and/or process design. In reducing environmentally hazardous substances in our products, weaddress the most up-to-date information regarding country-specific legal requirements and the RoHS2,
and propose to our customers. As a way of reducing waste volume, we have also been keen on minimizing
waste materials, reusing raw materials by introducing new equipment, and developing products made ofnatural materials. For products with electronic circuits, we have adopted power-saving parts in our efforts
to develop products with low power consumption.
For microspeakers used for headphones or headsets, we are working towards environmentally friendly
product manufacturing by introducing adhesives that do not contain toluene for new microspeakers inorder to reduce VOC (replacing the parts that use solvent adhesives).

Speakers
We develop element technologies for speakers for next-generation environmentally friendly vehicles.
[Development of lightweight speakers] We are developing on our own and productizing speakers
incorporating technologies enabling lighter weight, by taking measures including optimization of resinand metal components, which are made with optimization design using CAE analysis, and studies
of carbon fiber reinforced thermo plastics (CFRTP) as a new material. At present, we continue
to develop element technologies for lightweight speakers, aiming to reduce the weight of 6.5”
lightweight speaker, which is approx. 200 g, to 100 g or less by 2025.
[VOC reduction] As initiatives to reduce the volume of VOC remaining at production sites and in
the passenger cabins of vehicles, we have cut the use of organic solvent adhesives for bondingparts, developed an adhesive which does not contain solvents, and adopted it for commercialized
products.
[Reduction of electricity consumption] As a part of our environmental activities, we have developed
and commercialized speakers with features including reduced solder applications, reduced
processes, and reduced use of drying furnace, which reduces electricity consumption during the
manufacturing process.

【Development target and result for toluene-free products】
Target for 2025: The ratio of products using toluene-free adhesives to be 100% by 2025.
<FY2019 Result>
The ratio of new mobile audio products using toluene-free adhesives at least partially was 100%.
<FY2020 Result>
The ratio of products using toluene-free adhesives: 25%【Plans for Achieving Targets】
・Make confirmations based on requirements on the use of toluene in the development and design
stage.
・Continue to study alternative adhesives to achieve 100% as the ratio of products using toluene-freeadhesives.

*
We will continue development efforts with a target ofachieving 20% as the ratio (to sales) of commercialized car
speakers incorporating these environmental technologies.
2020 result: 12%2025 target: 20%
Lightweight car speaker

Actuators

We proactively apply environmentally friendly design to haptic vibration actuator devices, which area part of new user interfaces for CASE*, VR, AR, and other technologies. In consideration of VOCemissions, we have adopted adhesives that do not contain harmful solvents. To reduce the labornecessary to manufacture products, we have realized quick curing using UV radiation and pulse
heat soldering. In addition, to reduce solder consumption, we have developed resistance welding
and put it to practical use. We will maintain our status of using adhesives that 100% do not containharmful solvents.

Adhesives
Adhesives

Example: Environmentally friendly microspeaker(microspeaker with a 35 mm diameter for headphones)* CASE: Connected, Autonomous, Shared, Electric
Toluene-free adhesives

Toluene-free tapes

Example: Application of toluene-free adhesives

Example: Product developed by using power-saving parts(Bluetooth wireless earphones)

Corporate
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Corporate History

Foster Group ESG Management

Environment
Environment

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Data Table

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13

Environment Month Activities (Headquarters)

Environment Month Activities (Overseas)

Environment Lecture Presentation

China

We invited an outside expert to speak on the marine plastic pollution to our officers, department heads,
and group leaders (in the form of a Web conference). The lecture served as an opportunity to think about
the relationship between pollution and our activities.

We performed cleanup activities around each plant to raise employees’ awareness on environmental protection.

Other activities
We held a flea market, solicited for ideas on waste
reduction, and took other initiatives as opportunities
to think about waste reduction measures as employees or individuals.
City cleanup activities

VietnamEnvironment lecture presentation

We performed cleanup activities around each plant. We also undertook planting activities and provided
environmental training, internally at each plant.

Akishima City Cleanup Movement (Mini-Clean Activities)
As part of our CSR activities, we prepare an annual plan to carry out monthly mini-clean activities ofclearing the footpaths and sidewalks around our headquarters. We also actively participate in the Akishima
Cleanup movement, and are working towards the beautification of our local area (biodiversity protection),in which all departments including the members of the Environment Committee can participate. Many of
those activities were postponed or cancelled due to the COVID-19 pandemic, with the annual number ofparticipants falling by 58.3% from the previous fiscal year, to 67 (participation rate: 12.7%). The total waste
weighed 16 kg. In the current fiscal year, we are also considering new measures.

Internal training

Planting activities

City cleanup activities

Myanmar
We performed cleanup activities around each plant. We further performed planting activities and held anenvironmental slogan competition to raise environmental awareness internally.

Mini-clean activities
City cleanup activities

Corporate
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Corporate Profiles/ Financial Information/
Corporate History

Foster Group ESG Management

Environment
Environment

Planting activities

SocialEnvironmental slogan competition

Governance

External Recognition

Data Table

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SocialCSR Management in Supply Chain
Driving CSR activities is not limited within a company or groupcompanies alone, but is to be managed by the entire supply chain
including customers/suppliers. The Foster Group is proactive in
responding to CSR requests from customers, driving CSR activities
internally, and implementing responsible procurement activities for
suppliers.

Customer Audit and Questionnaire
The Group respond to various CSR requests from over 50 corporate
customers. We have received a total of 3 CSR audits from 2 corporate
customers from April 2020 through March 2021. In addition, we
received and responded to 24 CSR self-assessment questionnaires
from 11 corporate customers in the past year.
We will continue to drive CSR-based manufacturing and sincerely
respond to such requests.

CSR Internal Audit
We check CSR activities status and conduct internal audit to maintainsound CSR management system. We conducted 18 CSR internal
audits from April 2020 through March 2021 at our overseas sites. The
standards and guidelines for these audits were based on local laws,
in principle, and we also applied RBA code of conduct, RBA-VAP(Validated Assessment Program), ISO 14001, OHSAS 18001, ISO
45001, SA8000, as well as customer standards.

Responsible Procurement
In our global expansion, we have developed the “Basic Principles
of Procurement” for the supply chain, including ourselves and our
suppliers, based on which we build fair and healthy relationships.

Basic Principles of Procurement
We will deal with all of our suppliers in good faith.
1. Compliance with laws and ordinances
We will comply with the laws, ordinances and regulations in the
countries and regions where we conduct business activities, andwill conduct purchasing duties in accordance with social ethics.
We will not accept any gifts or entertainment that violates laws orsocial ethics.

Corporate
Philosophy

Top Message

2. Fairness and impartiality
We will keep our doors open and provide equal opportunities to allbusinesses, and will evaluate and select suppliers with impartiality
based on reasonable criteria.
3. CSR Procurement
We will promote clean and green procurement based on the Foster
Group Supplier CSR Code of Conduct.
4. Partnerships
We will endeavor to deepen mutual understanding with our
suppliers and build bonds of trust with them.
5. Confidentiality
We will strictly manage confidential information that comes into ourknowledge in doing business.

Clean Procurement
The Foster Group Code of Conduct for Staff stipulates that we shallcomply with laws and internal rules related to entertainment and gifts
to and from customers and suppliers, and prohibits us from providing
and accepting profits in violation of such laws and rules. Specifically,
we have set strict rules on transactions, including the provision andacceptance of money and coupons, acceptance of gifts, provision of
goods as gifts, and provision and acceptance of entertainment.

Representatives and Structures
The Procurement Department belongs to the Production Division andperforms activities under the head of the division (Executive Officer)
as the representative. Each manufacturing site and business division
has a procurement department. We are enhancing CSR activities incooperation with each manufacturing site and business division. We
check the PDCA cycle, share future issues, and take appropriate
actions at Sustainability Committee Meeting (held monthly), Global
Procurement Meeting held by the representatives of the Procurement
Department from all sites (held biannually), and the Supplier
Procurement Conference, in which suppliers and our president andother directors participate (held once every two years).

Management System
We strive to trade with suppliers who not only provide excellent
technologies, quality, delivery dates, and suchlike, but also fulfill their
responsibilities regarding human rights, labor, safety, the environment,compliance, information security, and other social responsibilities.
We believe the Procurement Department’s promotion of CSR to be
an important business policy and conduct management review on aregular basis. Our suppliers conduct CSR self-assessments for us,
and we include CSR requirements in the basic transaction agreements

Corporate Profiles/ Financial Information/
Corporate History

Foster Group ESG Management

Environment

SocialSocial14

that we enter into with them. Further, we conduct CSR audits of our
suppliers and request that they take corrective actions to improvebased on the results of the CSR self-assessment and of the regular
audits on quality (ISO, VDA, and IATF), the environment (hazardous
substance management and ISO 14001), and CSR (status of CSR
activities) and other evaluations regarding delivery dates, services, andother aspects of the relationships. We take measures to address the
problem of conflict minerals that adhere to the OECD Conflict Minerals
Due Diligence Guide.

Education
The Procurement Department implements an education and training
plan covering an extensive choice of programs for acquiring a widearray of necessary skills, including ones on CSR operations. Training
courses in 2020 were given mainly online due to the COVID-19
pandemic. A total of 160 employees received training in 60 courses,
mainly those on CSR (ESG), legal affairs (contracts and intellectual
property), the environment (management of controlled substances,environmental measurement, and ISO 14001), quality (ISO, VDA,
IATF), QMS, EMS (auditor training), the Subcontract Act, producttechnologies, and raw materials and components. These training
courses are aimed at improving skills to solve problems at work sites.
We also provided the training for overseas sites by using a videoconferencing system and LMS, thus developing human resources
who will fulfill social responsibilities in procurement operations. Further,in 2020, we held an environmental briefing remotely for 400 people
from all of our approximately 200 supplier companies and informed
them fully of controlled substances and regulatory requirements thathave been added, the time when they would come into effect, andother matters.

Sustainable Procurement
To promote CSR procurement activities, we established CSR guidelines
for suppliers in 2011 and have been driving such activities since then.
We first consolidated related internal rules and documents. In 2012,
we began to distribute them internally and to Group companies,
asking for CSR procurement. In 2014, we began to give requests to
suppliers. In 2016, we started requesting them to sign the agreementwith the Foster Group Supplier CSR Code of Conduct, perform selfassessment, and take corrective actions. In 2020, we conducted
SAQ (Self-Assessment Questionnaire) of approximately 300 suppliers,
and where necessary, requested them to take corrective actions andperformed on-site audit, in our efforts to build a sound supply chain.
Moving forward, we will establish initiatives by working together with
suppliers in identifying issues to address.

Governance

External Recognition

Data Table

Sustainability Report 2021
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Overview of Our Supplier Partners

CSR Self-Assessments and Supplier Audits

We trade with approximately 300 suppliers, 58% of which are in
China. The machined parts industry accounts for 77% of all businesssectors. Companies in the Foster Group promote CSR procurement
in cooperation with the suppliers.

In fiscal 2016, we began having our suppliers conduct CSR selfassessments concerning their initiatives addressing human rights,
labor, safety, the environment, compliance, and information security.
Based on the results of the self-assessment, we visit suppliers to
inspect their work sites and interview them as necessary. In fiscal
2020, we had approximately 300 suppliers conduct self-assessments.
Based on their results, we audited four of the companies, which
needed corrections, and audited two of them again to check if they
have taken countermeasures. We created corrective action plans by
sharing specific points needing improvement in the on-site audits
and requested the suppliers to take corrective actions proactively.
We will continue to request that suppliers conduct self-assessments
regularly and take corrective action immediately if any problems are
identified, in our efforts to build a sound supply chain.

Trade status (by region)

Trade status (by business sector)
Electronics Electronics
2%
2%

Others
12%

ASEAN
29%

Raw
materials
11%

Others12%

ASEANChina
29% 58%Rawmaterials
11%

China
58%
Machined parts
Machined parts
77%
77%

Intra-Industry Collaboration (Engagement)
Supplier Selection and Evaluation
The Foster Group sets the implementation of CSR activities as abusiness condition when selecting suppliers. We ask suppliers toagree to the “Foster Group Supplier CSR Code of Conduct” andreply to the SAQ (Self-Assessment Questionnaire). We conclude abasic transaction agreement containing CSR requirements with
suppliers before starting trade with them. We also conduct SAQs forthe existing suppliers, check the implementation status of corrective
and improvement actions and provide educational activities for them.

Initiatives for Tier-2 and Lower-Tier Suppliers
Through our Tier-1 suppliers, we request that our Tier-2 and lowertier suppliers comply with the “Foster Group Supplier CSR Code of
Conduct”. Specific initiatives include requesting that Tier-1 suppliers
distribute the Code of Conduct to their own suppliers and require thatthey comply with it, in addition to asking Tier- 1 suppliers themselves
to understand the Code of Conduct, share it internally, and conduct
self-assessments to ensure their compliance with it.

Since fiscal 2016, we have been a member of the Global Compact
Network Japan (GCNJ), a network of the United Nations Global
Compact (UNGC), and have engaged in the activities of the Supply
Chain Subcommittee of the GCNJ. In this subcommittee , wehave discussed the latest global supply chain trends, beyond theboundaries between industries, and the practical issues regarding
CSR procurement that are faced by each industry and company.
We work on tasks such as the creation of deliverables for solving
the above practical issues as well as the consideration and revisionof CSR self-assessments, among others. In addition, because
the numbers of minerals designated as conflict minerals are
increasing, we participate in the Outreach Meeting hosted by the
Responsible Business Alliance (RBA) and explanatory meetings on
conflict minerals hosted by the Japan Electronics and Information
Technology Industries Association (JEITA), to ensure that informationis shared regarding the latest trends and to develop intra-industry
collaborations that raise awareness in the supply chain and improvethe efficiency of investigations into conflict minerals.
Supply Chain Subcommittee of the GCNJCSR Procurement Self-Assessment Tool Set(The following site is in Japanese)
https://www.ungcjn.org/activities/topics/detail.php?id=357

15Connecting with Our Business Partners inEnvironmental Burden Reduction
We have established the “Green Procurement Standard” for chemical
substances contained in the procured parts, and connect with ourbusiness partners to reduce environmental burdens.

Responsible Minerals Sourcing
Illegal mining and smuggling of minerals by armed forces/groups in
the Democratic Republic of the Congo and its surrounding countries
not only provide a source of funding for these groups, but also lead tohuman-rights violation such as child labor, poor working conditions,environmental destruction, and other issues. In accordance with the
Dodd-Frank Wall Street Reform and Consumer Protection Act in
the U.S. established in July 2010, we promote responsible minerals
sourcing for the entire supply chain to fulfill social responsibility inprocurement activities.

Our Approach to Due Diligence
We promote responsible minerals sourcing for the entire supply
chain by communicating our policies to our business partners.
We use standard investigation tools and materials as it requires
cooperation from all the business partners including smelters. As
for tools, we refer to “Conflict Mineral Reporting Template (CMRT)”
issued by “Responsible Minerals Initiatives (RMI)”. We also attend theinquiry briefings held by “JEITA Responsible Minerals Trade Working
Group” and use investigation manuals/guidance commonly sharedwith automotive manufacturers and Japan Auto Parts Industries
Association.

Conflict Minerals Investigations
In fiscal 2020, we achieved a 99% response rate for investigations
into conflict minerals carried out on approximately 300 suppliers. We
conducted risk analysis and evaluation from collected CMRT andrequested further examination according to the risk levels by eachsupplier. Among the smelters that we identified, 90% have passed
the conformant smelters audits (RMI). In fiscal 2018, we started
investigating cobalt and mica according to the due diligence guidance
by OECD. We will continue to conduct investigations for tantalum,tin, tungsten, and gold (3TG) because the refinery certification statuscontinues changing for these minerals. If any sourcing of a mineral
involving a risk is identified, we will take appropriate actions byworking together with the supplier.

Conflict Minerals Policy
https://www.foster-electric.com/procurement/csr.html
Corporate
Philosophy

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Corporate Profiles/ Financial Information/
Corporate History

Foster Group ESG Management

Environment

SocialSocialGovernance

External Recognition

Data Table

Sustainability Report 2021
(English version)

Quality and Safety Assurance

Global Quality Assurance Structure

The Foster Group is undertaking quality assurance activities based on the FOSTER TQM (Total
Quality Management).

The Group has developed global quality assurance systems, connecting the headquarters, overseas factories and sales companies
to improve the quality of our products to be supplied worldwide.

Our Quality Assurance Policies and Actions

Enhancing Quality Awareness

Under our customer-focused philosophy, the Foster Group considers the delivery of safe, eco-friendly
products of reliable quality by fulfilling customers’ expectations and social requirements as the basics of
our quality assurance.
In addition, under the Basic Quality Policy, we globally promote comprehensive quality assurance activities
to ensure that our products are of high quality.
Safety, reliability, and management of environmentally hazardous substances are taken into account on
our products and components at all times during the processes (product/process design, purchase, andmanufacturing) supported by our high-level technologies.
 Our Quality Assurance Activity System (Main Process) and Mechanism
Quality Assurance Activities based on APQP (Advanced Product Quality Planning)

FOSTER TQM(Total Quality Management)

Market needs, customer expectations and requirements

Continuous Improvement

Increasing the satisfaction, trust and reliance of customers, contributing to
the community and society and preserving/protecting the environment

SystemCreation

Quality and Environmental Policy
TQM Regulations/Quality Management
ManualQuality system rules and/or regulations
Response to legal requirements

Design, prototype production
Design/prototype validation and review (DV, DR1/2)
Mass-production of prototype, validation, and evaluation

Quality certiﬁcation

Human resource development inquality management

Mass-production, product inspection, shipment

Note) DR-0: Product feasibility review, DV: Product design validation,
DR1/2: Product design review

Our QMS is based on the development of quality assurance and management activities under its customer-focused philosophy
since the Company’s foundation.
▲ In 1975, we formulated the Total Quality Control (TQC) Regulations, which was
We develop QMS by seeking “Zero Defect”
upgraded to Total Quality Management (TQM) Regulations in May 2006.
Zero Defect▲ Since 1998, all the Group companies have successfully acquired the QS9000
certification (including ISO 9001: 1994).
▲ In 2004, all the Group companies successfully acquired the ISO/TS 16949
certification.
▲ In 2017, we switched to ISO 9001: 2015 and IATF 16949: 2016 standards
company-wide and have continued to comply with them.
* QMS: Quality Management System

Top Message

Main Events Held Last Fiscal Year
■ Holding a quality improvement case exhibition
We hold exhibitions at headquarters and overseas sites to share detailed information on the improvements.
Last fiscal year, we did not hold the exhibition at the headquarters due to the COVID-19 pandemic. Instead,
we made the exhibits freely available for viewing on our website.

Product feasibility review (DR-0)

TQM and QMS* at FOSTER

Corporate
Philosophy

Our headquarters has made November the “Quality Month” andholds a variety of events to improve quality awareness.

Contract check

Customers, markets

Basic Quality Policy

The Group guarantees product quality in all of the products it
supplies worldwide through its Global Quality Assurance Structure.

Process

Product creation
Quality creation
Quality to be accomplishedby the across-the-board Human
Technology
eﬀorts of
Resource
Creation
the employees
Development
Product development technology
Environment and safety related
technologies
Production technology

16

Corporate Profiles/ Financial Information/
Corporate History

Foster Group ESG Management

Exhibition at the headquarters: The
exhibits were made available for viewing
on our website.

Exhibition at Guangzhou plant in China

Exhibition at Thilawa plant in Myanmar■Seeking ideas for a quality slogan
We seek ideas for a quality slogan from each division every year.
Compiled in a booklet, all of our employees carry at all times.
■Holding the Global QC Circle Convention
Through the QC Circle activities, opinions from overseas production sites are valued and used to improve product quality.
Each year, more than 100 circle teams are conducting activities.
Among them, teams that won the QC Circle Convention at eachfactory gave presentations of their achievements. Usually, suchteams gather at the headquarters to give the presentations. Last
fiscal year, however, the presentations were given online due to the
COVID-19 pandemic.

Global QC Circle Convention held online(Minimum number of people including juries
gathered at the venue.)

Future Plan
We will continue to enrich its contents and promote its global extension, aiming to mature our qualityfocused corporate culture.

Environment

SocialSocialGovernance

External Recognition

Data Table

Sustainability Report 2021
(English version)

Customer Satisfaction

Fostex Company

Foster Group Sales Department

Policies

Policies
The Foster Group Sales Department mainly sells speakers and headphones for cars and audio devices.
To realize our vision “To make contributions for future society through acoustics”, we are working every day
to create good sounds that can impress people across the world through our products and parts. One
thing we must do to achieve this mission is to “create customers”, as a wise person once said. (Needlessto say, customers can be created by continuously satisfying someone’s needs.) We consider it as the origin
and believe that customer satisfaction is the principle of all our activities.

Structure
We have sales offices in Japan (headquarters), the U.S., Europe, and other Asian countries/regions beside
Japan. This tetrapolar structure is the base of the framework that enables our flexible responses not only
based on the local time and languages, but also a deep understanding of business customs and cultures.
In addition, through personnel interchanges among regions, we have established a structure to develop
global human resources as true cosmopolitans, regardless of where they were born, and deliver our quality
sounds to people all over the world.

Activities
The current economies and corporate activities are connected around the world and do not stop. Throughour tetrapolar structure described above, we have realized a 24-hour response system globally and are
conducting activities to quickly respond to every customer.

Future Plan・	We provide our products in the fields of cars, entertainment, and communications and deliver happinessto people around the world through our sound.
・	With new markets for cars, entertainment, and communications growing at an accelerated pace, withsurrounding areas becoming involved, the markets are being integrated into a comprehensive lifestylefield. Under these circumstances, we strive to provide new products that meet changing needs anddeliver greater satisfaction to customers around the world.

Corporate
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Foster Group ESG Management

17

The Fostex Company provides high quality products at appropriate prices to deliver an enriched andcomfortable life to customers who purchase those products. In addition, the Company seeks to develop
products that lead to the peace of mind and satisfaction of the customers who select and own them. In
its after-sales services, the Company also pursues customer satisfaction by always promptly providing
services from the customers’ perspective.

Structure
We always listen to our customers’ comments and seek what they need so that we offer products that ourcustomers can use with satisfaction and peace of mind. As such, we have established a project promotion
structure across our sales and technical units. In addition to the domestic market, we also understandglobal needs to develop products specific to each region.

Activities
We share information with the dealers who are constantly in contact with our customers and also makeefforts to listen to as many customers’ voices as possible at exhibitions and trial listening events. As partof our educational activities for audio equipment, we offer lectures on working principles of speakers andspeaker craft classes at universities or vocational schools.

Future Plan
We will continue to supply products of our trusted original brand, FOSTEX, to introduce our high technicalcompetences and the high competitiveness of our products. In fiscal 2021, we will continue to develop
products that can deliver greater listening pleasure to our customers through sound, focusing on the
expansion of high-end full-range speakers, a strength of Fostex, and its peripheral devices such as power
amplifiers.

Environment

SocialSocialGovernance

External Recognition

Data Table

Sustainability Report 2021
(English version)

Human Rights Protection

18

Activity Promotion Structure

Policies
In 2003, we established the “Foster Group Corporate Action Guidelines” and the “Foster Group Code of
Conduct for Staff”, which define our respect for human rights in compliance with all laws and regulations,international rules and their spirits and concepts. We have also requested our business partners in thevalue chain to show a similar respect for human rights. An outline is provided below.
Respect for Employees’ Humanity
Under our labor-management mutual trust and responsibility, we seek to create safe and work friendly
worksites, aiming to help our employees enjoy comfortable and affluent lives. We also respect ouremployees’ human rights, personalities, individuality, and abilities. In addition, we do not support any formof forced labor and child labor.
Respect for Human Rights and Anti-discrimination
We do not engage in irrational discrimination based on birthplace, nationality, race, origin, creed, religion,
gender, age, disability of various kinds, hobby, academic background, skin color, sexual preference, gender
identity disorder, pregnancy, political belief, participation to associations, marital status, hometown, etc.
We do not conduct any actions that might lead to human rights violations such as violence, ridicule,defamation, slander, forcible working by threat, bondage (including by liabilities), human trafficking, orbullying.
Sexual Harassment
We do not engage in any act of sexual harassment or any act that could be misconstrued by others as
sexual harassment.
We do not engage in any sexual speech or acts that are offensive to another person and prevent otherpersons from engaging in such acts.
Protection of Personal Information and Privacy
With respect to personal information and privacy, we only use the personal information for the work andcontrol it strictly. We control it strictly in compliance with related laws and regulations, so that it will not be
divulged outside the Company.
Worksite Health and Safety
We give priority to the provision of safety and health, endeavor to maintain a safe and healthy workplaceenvironment, understand the laws and orders concerning work-related safety and health and comply withthem. If any work-related disaster arises under any circumstance, Foster Group directors and staff strive tocarry out the prescribed procedures such as the creation of an immediate report in order to minimize andprevent the recurrence of such accident in a reliable manner.

We have established the Sustainability Committee and Compliance Committee to promote all relevant
Foster Group initiatives.
In addition, we have established the Compliance Hotline and the Harassment Helpline as contacts for
consultation and reporting and provide advice to various stakeholders.

Diversity
Policies
The Foster Group seeks to create systems and environments in which a diverse workforce of different
genders, ages, nationalities and backgrounds as well as employees who work while raising children or
providing nursing care can work actively according to their respective lives.
Through those activities, we aim to build a “Win-Win relationship between the company and its employees”
and create synergies with the realization of enjoyable personal lives for each employee, the creation of newvalue, and improvement in the company’s creativity and competitiveness.

Activity Promotion Structure
We have established the Diversity Management Section as a special organization in the Human Resources
Department and are involved in multifarious activities.

Main Activities (Headquarters)<Supporting Employees Raising Children and Providing Nursing Care>
To promote a working environment where employees who are raising young children and providing nursing
care can work at ease, we have improved our system to support the balance between work and child/nursing care. Since April 2018, we have extended the childcare leave period to three years maximum andthe nursing care leave period to 183 days maximum. In addition, we have signed a joint use agreementwith company-led childcare centers, which offers preferred benefits such as the right to the early nursery
applications.
<Promoting Women’s Active Participation>
By providing female employees with planned cultivation and supporting their career development, we areaiming to have female managers represent 30% of all management by 2025.

Compliance with Labor-related Laws
We comply with the labor-related laws and endeavor to maintain a comfortable and healthy workplaceenvironment.
In order to ensure that the working conditions stay within the limit set forth in the “Labor Standards Act”,
we strictly control working days and working hours. We do not force labor that compels excessive workor over-time work and so on.
Managers take into consideration the condition of the physical and mental health of subordinates at all
times.
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Sustainability Report 2021
(English version)<Educational Activities on Diversity>
We have set up a special website on diversity on our internal intranet, where we provide information tofoster a better understanding of the fact that active participation of diverse human resources will lead tonew value creation by the company. We will also continue awareness-raising activities for consciously
eliminating unconscious prejudice and preconceptions (Unconscious Bias) by using manager training andother opportunities.
<Our Activities for LGBT (Sexual Minority)>
Currently, the Human Resources and CSR departments are carrying out activities to deepen understandingof LGBT and increase the number of allies (those who show understanding and support for LGBT people).
We will continue to increase allies company-wide through activities designed to foster understanding ofLGBT.
<Promoting Student Internships>
We have accepted student interns since 2012. In addition to the work programs for learning acoustic
technologies and sales activities, we provide a program for learning CSR, a program for experiencing
acoustic quality evaluation, a program for overseas students, and various other courses. We have received
positive feedback from the participants, who said that they were able to experience the sound developmentof Foster. In fiscal 2020, a total of 71 interns participated in them.
<Global Human Resource Employment>
The Foster Group employs a variety of human resources regardless of theirnationalities, and is actively promoting international communications in theGroup to cultivate human resources and enhance the functionalities.
* With our activities recognized as a company that leads diversity promotion
to its management, we were selected as the “New Diversity Management
Selections 100 (2017)” by the Ministry of Economy, Trade and Industry. We will continue to create aworking environment that makes the most of the employees’ diversity with various backgrounds.
■ Website of the Ministry of Economy, Trade and Industry:
New Diversity Management Selections 100 (2017) Companies (The following site is in Japanese.)https://www.meti.go.jp/policy/economy/jinzai/diversity/kigyo100sen/practice/pdf/H29_diversity_
ichiran.pdf
Best Practices in Fiscal 2017 (The following site is in Japanese.)https://www.meti.go.jp/policy/economy/jinzai/diversity/kigyo100sen/practice/pdf/H29_diversity_
bestpractice.pdf

19

Labor (Labor Practices and Decent Work)
Policies
We put a high value on creating an environment in which each employee can grow through work anddisplay their capabilities in a rewarding work. To realize this, we believe it is important to create a “workfriendly” environment where employees with various backgrounds support each other spontaneously
through daily communications and give ideas to each other. Under labor-management trust and mutual
cooperation, we seek to create an organizational culture and develop various institutions, aiming to create
an environment where employees with various lifestyles and aspirations can work in the style that suits
their situation.

Activity Promotion Structure
In addition to the promotion activities led by the Diversity Management Section, we have established theinnovative working style project, which is involved in a wide range of activities with cooperation between
labor and management.

Main Activities (Headquarters)<Work-Style Reforms>
Since September 2016, we have established the systems and culture that satisfy avariety of work-style to promote diversity and realize a work-life balance.
In fiscal 2017, we applied the flex time system to all employees and introduced thework-at-home program. As for the work-at-home program, we introduced it at fullscale without limiting the targets, and have been selected as one of the “Top 100
Telework Pioneers” by the Ministry of Internal Affairs and Communications for its
telework initiatives. We have engaged in creating a work environment where employees can work flexibly
to suit their lifestyles regardless of “time” or “place” by utilizing ICT. We will continue work-style reform tobecome a company that can offer a more desirable work environment and fulfilling career.
<Reduction of Scheduled Working Hours>
We took our 70th anniversary as an opportunity to reduce scheduled working hours by 15 minutes, to
7 hours and 30 minuets, effective on April 11, 2020. We will continue to improve operational efficiency,
review the length of time needed for business execution, and improve the productivity per hour, in ourefforts to achieve a highly efficient work-style.

Future Plan
- Female manager ratio (at headquarters): To increase the ratio to 30% of all the management by 2025.
- Ratio of overseas human resources (at headquarters): To increase the ratio to 30% of all headquarters
employees by 2025.
- Employment rate of persons with disabilities (at headquarters): To keep the rate above the mandatory
rate required by law.
- Displaced worker for nursing care (at headquarters): To maintain 0% for displaced worker due to nursing
care and enhance the nursing care leave system.

Corporate
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Sustainability Report 2021
(English version)<Removal of Ban on Second Jobs>
On September 1, 2020, we removed the ban on second jobs. This reflects our belief that a wide variety
of experience gained outside the company will increase opportunities to demonstrate one’s capabilities in
new domains and achieve personal development, thus helping to increase the breadth and depth of careerdevelopment of individuals. At present, several employees have second jobs.
<Enhancement of the Leave System and the Leave of Absence System>
We have introduced a volunteer leave system and systems that grant a leave of absence to employees
desiring to pursue further education and those who desire to accompany their spouses on overseas
assignment. In October 2020, we officially introduced an hourly paid leave system. This system utilizes
unused paid leave. We have also increased the maximum number of days of such unused paid leave from
20 to 22 and increased the purposes for which use of the hourly paid leave is permitted, so that it can beused for nursing care of families as well.
<Health Enhancement>
Mental and physical health is essential for employees to feel job satisfaction and have a fulfilling career. We
position employees’ health as an important management issue and are taking various initiatives.
For example, to raise the awareness of employees’ health, we implement the “Health Point System”, inwhich we give points and provide health incentives to employees, and a “Smoking Cessation Support
Program”, which subsidizes the expenses paid to medical institutes to the employees who wish to quit
smoking.
These initiatives were evaluated and we received a “Certification of Excellent Company in Health: Gold
Accreditation” from the Tokyo Promotion Council for Healthy Company Declaration. (This certification was
renewed on January 1, 2021.) In addition, in March 2021, we received recognition for a certified “Health& Productivity Management Outstanding Organization (Large Enterprise Category)” by the Ministry of
Economy, Trade and Industry.

Corporate
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20

Future Plan
Target for fiscal 2021:
・Total working hours (at headquarters): Average 153 hours or less per month・Rate of periodic health examinations taken (at headquarters): Maintain 100%, and achieve 80% for reexamination rate
・Rate of specific health guidance taken (at headquarters): 80%

Human Resource Development
Policies
Our human resource development is based on “continuous performance by linking various personnel
systems with individual development goals determined by mid/long term business strategy and individual
personality (strength/ weakness)”. The ideal for human resource development is as follows:・Personnel who embody our corporate philosophies and corporate creed through their duties and who
have a “strong will” and “activity” to work toward their realization.
・Personnel who do not remain complacent about the current situation but utilize every opportunity to
improve their own abilities and grow with ingenious attempts and efforts.
・Professional personnel who use their expertise to play a key part in strategy formulation and implementation and who can create value continuously.
・Self-directing personnel who are conscious about their expected and assigned roles and missions andwho can take responsibility for their own actions and results.

Activity Promotion Structure
Those human resource development measures are driven mainly by the Human Resources Department.
In addition, through the “Foster Rhythm Project”, which introduces our corporate philosophy penetration
activities globally, we are striving to develop human resources who can embody those corporate philosophies and create a lively organizational environment.

Environment

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External Recognition

Data Table

Sustainability Report 2021
(English version)

Main Activities, Measures, and Development
・To promote philosophy-focused management (Way Management), enhance the power of humanresources and organization, and transform the organization, the Foster Group developed the action
guidelines by redefining “the ideal company”. We summarized those into the “Foster Rhythm Guidebook”
and “Foster Rhythm Card” and distributed them to our employees across the world. We are also
continually providing workshops and various kinds of education programs.
・As part of our long-term strategies of developing managerial personnel with a view to becoming acentennial company in 2049, we implement the Global Leadership Development Program (GLDP) tofoster reform-minded human resources for the next and future generations globally. GLDP is a program
where we select three different talent categories based on the job and experience levels--Next Leaders,
Future Leaders and Rising Suns--and implement the most suitable talent development according to eachcategory.
・We make use of new employee training, training for newly promoted employees, manager training,
lectures by senior management, and other opportunities to improve inter-cultural communication skills,
promote diversity, and foster and enhance the global mind of our employees. We have also introduced
the Global-eye Program, a new overseas training program for young employees, to promote the plannedand continuous development of the next-generation of global leaders.
・Since April 2018, we have introduced a new personnel system (personnel system with multiple courses)
aiming to make the transition to a more flexible personnel system with a wider range of selections
according to each employee’s career plan, life stage, and work-life balance. At the same time, we are also
working to promote the development of engineers by providing life career design training and introducing
the “Technical Master System”.
・To promote localization of overseas site management, we are also actively working on the developmentof the local managing staff at each site. Specifically, we ran the Global Leader’s Training and facilitatedhuman resources exchange by the Overseas Trainee Program and the international employee
reassignment within Group companies, etc. to develop human resources globally.

Future Plan
・Promoting human resource development aimed at forming a solid foundation of human resources to be
the next-generation leaders of Foster
・Building a portfolio of diverse human resources by eliminating every form of discrimination based onage, gender, nationality, creed, or other attributes, based on the belief that a truly diverse and inclusive
organization enables high productivity
・Promoting true work-style reforms by offering diverse options to cater to the career-planning and work
style needs of each one employee
・Establishing a corporate climate which enables all employees to feel pride as a professional and thepleasure of working for Foster and to positively impact on all the stakeholders

Corporate
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21

Health and Safety
Policies
Foster Electric has established a rule to prioritize health and safety, and endeavors to create a safe andhealthy working environment. Based on this rule, we are advancing redressing activities, which are carriedout mainly by the Health and Safety Committee that governs health and safety, and the health and safety
management organizations at respective sites.
Abstract from the “Code of Conduct”
1. Understand laws and orders concerning work-related safety and health and comply with them. And
minimize and prevent a recurrence of an accident in a reliable manner.
2. Employee exposure to potential safety hazards is to be controlled through the proper design, engineeringand administrative controls, preventative maintenance and safe work procedures.
3. Procedures and systems are to be in place to prevent, manage, track and report occupational injury
and illness.
4. Employee exposure to chemical, biological and physical agents is to be identified, evaluated, andcontrolled.
5. Employee exposure to the hazards of physically demanding tasks is to be identified, evaluated andcontrolled.
6. Production and other machinery is to be evaluated for safety hazards.
7. Employees are to be provided with ready access to clean toilet facilities, canteen with suitable drinking
and eating environment.

Activity Promotion Structure
The health and safety activities carried out by Foster Electric are operated by the Health and Safety
Committee at headquarters in cooperation with industrial doctors, under the supervision of its upper-level
organization, the Risk and Crisis Management Committee. By sharing information among the health andsafety management organizations at each site, the Group is working as one to create an appropriate
working environment.
President

Risk and Crisis Management Committee

Health and Safety Committee

Industrial doctor

Outsourced contractor

Fire control and disasterprevention administrator(self-defense fire-fighting force)

Health supervisor

Organic solvent manager

Health and safety
management organization
at each Group company

Building healthadministrator

Hazardous material
safety supervisor

Chief press machine
operator

Specially controlledindustrial waste manager

Safe driving administrator

Environment

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Sustainability Report 2021
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22

Main Activities
Every year, we implement health and safety education, which is the basis of occupational activities. Further
we tackle “group-wide issues” based around the Risk and Crisis Management Committee at headquarters.
As part of the activities based on the “Health and Safety Management Regulations”, the health and safety
management organization, which consists of representative workers and management, discusses sitespecific issues, legal inspection, risk assessment, and so on at each site to prevent accidents and eliminate
risks.
With regard to the group-wide issues, we take initiatives to resolve occupational health and safety issues
for all employees based on the “Foster Group Corporate Action Guidelines” and the “Foster Group Codeof Conduct for Staff”. This year, the Health and Safety Committee took the lead to implement prevention
measures to cope with threats from COVID-19 as they did last year. The headquarters continued to workon the plan based on the policy of the Health and Safety Committee, “Globally reduce risks and makeprovisions against the occurrence of crises”, as an initiative to address individual issues. As measures tosupport health management by employees working remotely in the COVID-19 pandemic, we distributed avideo instructing easy stretching exercises that can be done at home and gave instructions on healthy dietin the form of e-learning. We also continued to drive actions to reduce the use of VOC from the productdevelopment stage and activities to promote good health among all employees, aiming to eliminate risks
possibly leading to serious consequences. These initiatives were evaluated and we received “Certificationof Excellent Company in Health: Gold Accreditation” from the Tokyo Promotion Council for Healthy
Company Declaration in December 2018, which was later renewed on January 1, 2021.

Measures to Tackle COVID-19
We have continued manufacturing by taking comprehensive measures to control COVID-19 infectionsat our manufacturing sites (such as body temperature checks, wearing masks, hand washing, andsterilization). At our development facilities, including headquarters, we have introduced a work-from-homesystem and a special leave program for employees receiving vaccines. Thus, we will continue striving to
reduce the risk of infections to keep our development efforts unaffected.

Award ceremony for the “Model Company for Bicycle Safety”

Initiatives at Overseas Sites
At our overseas manufacturing sites, we improve health and safety related matters through the Management
Systems.
Following the OHSAS 18001 certification obtained by Nanning Plant in China in July 2018, Bac Ninh Plant
in Vietnam and Panyu and Heyuan Plants in China obtained the ISO 45001 certification during October toDecember 2019.

Future Plan
Following the previous year, we will build a global structure based on ISO 45001-Occupational Health and
Safety Management System, reinforce our system for responding flexibly to events such as COVID-19, andpromote information sharing by the Health and Safety Committee.

Bicycle Safety
Some employees working at headquarters use bicycles for their work or commute, and their safe use of
bicycles and our traffic accident prevention activities were evaluated by the Japan Traffic Management
Technology Association. We were certified as a “Model Company for Bicycle Safety” in February 2017,with our activities being seen as a role model.

Corporate
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Environment

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Data Table

Sustainability Report 2021
(English version)

Social Contribution

2018年ストロー廃止の取組みを開始

Policies 9月生物多様性・海洋生物の保護として

Code of Conduct
We actively participate in social contribution activities as a good
corporate citizen to contribute to the development of society. We
continuously perform social contribution activities such as support
for culture and the arts, cooperation with local communities,
participation in volunteer activities and contributions to international
communities to play the role of a corporate citizen.

China
June 2020: Our employee volunteers participated in a blood
donation program organized by the blood bank of Heyuan City,
Guangdong Province.

プラスチック問題に着手

With our mission “Through acoustic products or its solutions, a
total commitment to help create a comfortable life and pleasure ofcommunication around the world. A truly global enterprise our futuresociety counts on.”, the Foster Group will seek to earn greater trustfrom the community through business activities in which we evolve
together with local residents.

23

 手始めとして、社内カフェで使用する

ストロー問題への取組みを開始
 11月生分解プラ・クラフト等へ代替購入費用や廃棄物処理課題から断念
 ストローそのものを廃止すること決意© 2020 FOSTER ELECTRIC CO.,LTD.

In addition, Foster is promoting activities to enable people toencounter local traditional cultures through Akishima Showa No Mori
Organization and Akishima Tourism & City Planning Association, in
which we participate. Foster is also deepening communications withthe local community through efforts such as cooperation with the
Akishima Location Service to engage in activities for revitalizing the
local area and donations to the Social Welfare Council to contribute towelfare in the local community. In May 2020, we donated nonwoven
fabric masks and received a certificate of gratitude for this activity.

Main Activities《Headquarters》

Korea
January, September, and November 2020: Charity funds forneighbors raised by officers and employees of ESTec Corporation,a Group company in South Korea, were donated to those in needof support in Yangsan City through the inhabitant life support officeof the city government and to students in the city through theeducation office.

<Communicating with the Local Community>
Since April, 2014, we have had the naming rights contract with
Akishima City regarding Akishima Community Hall, which is known
locally as KOTORI Hall by the citizens of Akishima City. We will continue
to pursue activities to win the affection of the local community.

Main Activities《Overseas sites》
We continued to participate in Akishima City’s Environmentally
Friendly Business Operator Network, which carries out environmental
activities with businesses in the city, as a lead member. However,various annual events hosted by this organization were cancelled
due to the COVID-19 pandemic. We also took part in a briefing on
reusable cups for offices, which was hosted by the Ministry of theEnvironment, and gave a presentation on our reusable cups withcooperation from other business operators belonging to the aboveorganization.

Corporate
Philosophy

Top Message

Foster Group’s overseas sites provide active support for regional
volunteering and donation activities, activities to support victims andthose who are economically disadvantaged, and other initiatives
each year.

Corporate Profiles/ Financial Information/
Corporate History

Foster Group ESG Management

Environment

SocialSocialDecember 2020: All our employees worked together to pickle 200
boxes of kimchi for consumption in winter (approximately 1,500 kg)
and sent them to elderly living alone, people with serious disabilities,
and households with a child acting as the head of household,through the Yangsan Volunteer Center. This “Kimchi sharing withlove” event has been carried out every year since 2010.

Governance

External Recognition

Data Table

Sustainability Report 2021
(English version)

Vietnam24

Myanmar
September 2020: We
carried out support
activities in an impoverished community in
Daklak Province.

April 2020: The company andemployee union gave donations for livelihood support tothe family of a former employee
who passed away in a traffic
accident.
April 2020: We sent gifts to employees who support children withcongenital disabilities.

November 2020: We gave a donation for supporting the fight against
COVID-19 to South Okkalapa General Hospital in Yangon City.

November 2020: In Quang Ngai Province and Quang Nam Province,
we gave donations to people who were affected by flooding.

Vietnamese Prime Minister Nguyen Xuan
Phuc paid a visit to Foster Bac Ninh Plant.

June 2020: We donated essential goods to hospitals and isolation
facilities in the Cam Le district of Da Nang, which was facing difficult
circumstances due to COVID-19.

July 2020: We participated in a humanitarian blood donation program.

Corporate
Philosophy

Top Message

December 2020: At the annual employee conference, the company
and employee union gave monetary donations to employees having
difficulty in making a living.

May 2020: In the labor month of Vietnam, Prime Minister
Nguyen Xuan Phuc paid a visit to Foster Bac Ninh Plant forsafety and health inspection and had an opportunity to interact
directly with our employees.

January 2021: We visited and gave monetary support to employees
suffering from occupational injuries or serious diseases.

Corporate Profiles/ Financial Information/
Corporate History

Foster Group ESG Management

Environment

SocialSocialGovernance

External Recognition

Data Table

Sustainability Report 2021
(English version)

Governance

General Meeting of Shareholders

Corporate Governance

Board of Directors

Policies

Accounting Auditor

Statutory Auditors / Board of Statutory Auditors
Management Monitoring

Representative Directors

Board of Directors
The Board of Directors meetings are held regularly on a monthly basis and whenever necessary to discussand decide important agenda items and the execution of important business concerning the Group’s
management policies and strategies. It supervises the management from an independent and objective
standpoint.
Board of Managing Directors
The Board of Managing Directors mainly consists of representative directors, managing directors, executive
directors, senior executive officers and statutory auditor. They hold discussions at the meetings before
making decisions on the execution of business operations.
Management Meeting, etc.
Mainly comprising the president and the head of the Company’s business divisions (including those whoserve concurrently as director or executive officer), the Management Meetings and the Division Head
Meetings are held to report and discuss matters concerning the execution of businesses at the businessdivisions, in order to expedite decision making processes and ensure that unified decisions are reached.
On a Group-wide level, twice a year, in order to facilitate consolidated management within the Group, theDomestic Group Company Meeting is held by the top executives responsible for the management of thedomestic Group companies; the Global Budget Meeting is held by the top executives of the overseas
Group companies to discuss their budgets; and the Global Strategy Meeting is held to discuss global
strategies with regard to sales, technology, quality control and manufacturing. Through these meetings,
we share and reaffirm the direction in which the entire Foster Group is heading, and reinforce collaborative
efforts within the Group.
Nominating Committee and Remuneration Committee
The Company has established Nominating and Remuneration Committees as advisory organizations
offering voluntary advice to the Board of Directors. These committees are designed to enhance fairness
and transparency in selecting and appointing people to managerial positions, and in determining thedetails of their remuneration, etc. Each committee consists of representative directors, managing directors,
independent directors, standing statutory auditors, and statutory auditors (currently a total of six members
for Nominating Committee, and five members for Remuneration Committee). Chairperson and vicechairperson are selected from independent directors for both of these committees.

Top Message

Corporate Profiles/ Financial Information/
Corporate History

Foster Group ESG Management

Management Meeting

Board ofManaging Directors

Corporate Governance Structure(Internal Control)

Division Head Meeting

Internal Audit
Department
Corporate Staff
Departments

Business Divisions
Domestic Group
Company Meeting

Sustainability Committee
Compliance Committee

Global Budget
Meeting, etc.

Risk and Crisis Management Committee
Environment Committee

Hotline

To maximize our corporate and shareholder values, we recognize the importance of establishing a fairand sound corporate management system and a managerial structure that enables quick and accurate
decision making to accommodate an ever-changing business environment, and the execution of legitimate
and appropriate business operations. To that end, we are currently working to improve and enhance ourapproach to corporate governance.

Corporate
Philosophy

25

Personal Information Management
Committee, etc.

Corporate Governance Guidelines
The Foster Group has established Corporate Governance Guidelines that express our basic way of thinking
and framework with regard to corporate governance.
https://www.foster.co.jp/csr/foster_group/pdf/20160401_corporate_governance_guideline.pdf (In Japanese)

Corporate Governance Report
The Foster Group publishes a report that describes the concept and structure of our corporate governancein accordance with the regulations of the Japanese stock exchange.

Foster Group Corporate Action Guidelines
The Foster Group has established Corporate Action Guidelines that express our actions with public
decency in compliance with laws and regulations inside and outside Japan, international rules, and their
spirit and intent as well as corporate ethics.

■ Foster Group Corporate Action Guidelines:
https://www.foster-electric.com/csr/governance/pdf/corporate_action_guideline.pdf

Environment

SocialGovernance
Governance

External Recognition

Data Table

Sustainability Report 2021
(English version)

Compliance

26

Compliance Committee

The Foster Group emphasizes compliance (with laws, regulations and corporate ethics) as a core elementof its CSR philosophy and promotes a compliance program—setting internal rules and building a structure
for management—to all Group companies.

The Foster Group’s compliance programs are led by the Compliance Committee with the president as achief executive.
In fiscal 2020, we conducted a compliance test and a questionnaire on overall compliance matters,
including the “Foster Group Code of Conduct for Staff”. We also held online compliance training for all
employees and took other initiatives to raise compliance awareness.

Compliance Structure

Future Plan

The Foster Group places emphasis on the internal whistleblowing system to promote compliance. Suchsystem is under operation through the “Compliance Hotline” and “Harassment Helpline” that connects
whistleblowers to external corporate lawyers available for 24 hours by email. Internally, the highly
independent internal audit office and HR representative act as a window to early detect violations ofcompliance. The whistleblowing hotline is extensively available to employees and officers of the entire
Group as well as to their families and the employees of business associates. We also hold briefings on the
Compliance Hotline and Harassment Helpline for employees, to ensure that they are fully informed of theinternal whistleblowing system.
For the protection of whistleblowers, the internal reporting regulations are established and disseminated toensure that they are treated fairly or not involved in any trouble as a result of the their actions.

The Foster Group will continue to promote activities such as the enrichment of internal trainings andprovision of information on related laws and regulations, which are led by the Compliance Committee,
established based on the “Foster Group Code of Conduct for Staff”, to enhance and improve thecompliance structure.

Policies

Organization of the Compliance Committee(The same applies to the Risk and Crisis Management Committee)

Chief Executive

Vice Chairperson
Secretariat

Committee members from the headquarters / Committee members from Group companies

Corporate
Philosophy

Top Message

Policies
The Foster Group is focused on predicting risks and taking preventive measures so that such risks will notmaterialize. They also focus on minimizing damage to the Company should a risk develop and materialize,
resulting in the occurrence of danger. Specifically, with a basic operating policy of building a resilient
structure for managing risks and crises under the new normal, we strive to assess the impact of risks andour vulnerability to them in the COVID-19 crisis, establish and strengthen countermeasures, reinforce ourstructure for managing and sharing information under the new normal, and review our risk profile.

Risk Management Structure

Chairperson

Consultation Contacts / Hotline

Risk Management

Corporate Profiles/ Financial Information/
Corporate History

Foster Group ESG Management

As the foundations for the Foster Group’s risk management structure, we have established the “Rules on
Risk and Crisis Management” and the Risk and Crisis Management Committee with the president as thechairman to identify risks using a checklist, analyze such risks and promote preventive measures on aGroup-wide basis.
In the event of any incidents or accidents, we will set up a task force, mainly consisting of the Risk
and Crisis Management Committee members, and take prompt measures to minimize damage, ensuring
restoration of the original state as early as possible and preventing any recurrences.

Environment

SocialGovernance
Governance

External Recognition

Data Table

Sustainability Report 2021
(English version)

Risk and Crisis Management Committee
The Committee identifies and evaluates risks based on the result of risk reexamination conducted byrespective department each year. From among those risks, the Committee selects important risk items
that it needs to control. Specific measures which have been taken to address such risk items are monitored
through regular meetings of the Committee. The risk evaluation result is also referenced during the business
policy planning. The Committee reports the status of its operation, risks faced by the Group, and measuresthat have been taken to tackle those risks to the Board of Directors as appropriate. The Board of Directors
fulfills its function of supervising risk management, such as by giving advice and instructions based on
specialized knowledge of outside officers. Our important risk items that were reviewed in fiscal 2020
included the business continuity plan (BCP), supplier BCP structure building, and information security
management system.

Measures for Addressing COVID-19
The COVID-19 pandemic has continued to have a major impact throughout the fiscal year.
The Group held meetings of the Risk and Crisis Management Committee each week and built a system
for immediate response by giving top priority to the safety and peace of mind of employees. In addition,
departments and business locations collected and shared information about customers and suppliers andother information and responded to risks in timely, appropriate, flexible manners.
[Major Responses]
・Having correct understanding of customers’ situations and addressing their problems
・Checking the operational status of each plant and performing appropriate inventory control
・Maintaining a correct understanding of supply chain situations and addressing relevant problems* Above all, when a lockdown was imposed in Europe, the United States, and other countries/regions,which resulted in shutdowns of customers’ plants, the Foster Group addressed the risk of supply chain
disruptions by taking measures such as checking the prospect of a resumption of the plants’ operationand the status of material suppliers.
・Safety and health measures, etc.
・At headquarters, we worked on building work styles under the new normal. We had employees workfrom home with a target percentage of those working from home at 70% under a state of COVID-19
emergency and 50% in other periods. We are taking steps to establish new work styles, such as thepromotion of remote working, provision of support for health management to employees working fromhome as an unfamiliar workplace, support for tackling the lack of communication, and the provision oftraining on performance-oriented personnel evaluations.

Future Plan
We will continue to improve the structure for prompt responses to an accident or incident in the event of
its occurrence and conduct periodic monitoring of important items at the Risk and Crisis Management
Committee to further enhance the risk and crisis management structure.

Corporate
Philosophy

Top Message

Corporate Profiles/ Financial Information/
Corporate History

Foster Group ESG Management

27

Business Continuity Plan (BCP)
Policies
The Foster Group is taking steps to prevent and avoid various business risks and crises as risk/crisis control and to minimize the damage to the Company and avoid inconvenience to customers
should a risk occur or be embodied, with the highest priority given to preventing the recurrence ofrisks/crises.

Activity Promotion Structure
The Foster Group promotes business continuity through the function recovery activities undertaken byeach function department of headquarters and through collaboration with the task forces at each sitein accordance with the decisions made by the Risk and Crisis Management Committee consisting of
its senior management.
Chairperson of the Risk and Crisis Management Committee
President
Executive Chairperson
Secretariat

Vice Executive Chairperson
Committee members
from the R&D Department

Committee members from the
Global Corporate Support Division

Committee members from the
Corporate Management Division

Committee members fromthe Corporate Planning Department

Committee members
from Group companies

Committee members
from the Engineering Division

Committee members
from the Fostex Company

Committee members from the Corporate
Information Strategy Department

Committee members
Committee members
from the Quality Assurance Division from the Internal Audit Department
Committee members
from the Sales Division

Committee members
from the Production Division

Main Activities and Measures
Operation of the Emergency-Contact Network (Safety
Confirmation System)
To keep the headquarters functional, the Foster Group has introduced
a safety confirmation system using mobile phones that allow
headquarters to issue an emergency notice to confirm the safetyof its employees and their families when an earthquake, disaster, orother emergency occurs. In April, we conducted roll call training byassuming a major disaster, as a disaster drill for employees working at
home during the COVID-19 pandemic.
Disaster-Prevention Activities
The headquarters is certified as an Excellent Fire Prevention Property.
Our daily disaster prevention activities and regional disaster prevention
activities were recognized, and we received a letter of gratitude fromthe Akishima Fire Department. In future, we will continue to work to be
a company that is needed in the community.

Environment

SocialGovernance
GovernanceA letter of gratitude for our fire
prevention and life safety measures

Certificate of gratitude for regionalsafety and disaster prevention

External Recognition

Data Table

Sustainability Report 2021
(English version)

Enhancing Measures to Tackle COVID-19
At overseas manufacturing sites, we take comprehensive measures to prevent infection, including bodytemperature checks at the entrance, hand washing, sterilization, and installation of partitions. In doing so,
we will keep our production sites safe and secure.

28

Our Stance on Tax Matters
Basic Stance
The Foster Group works to maintain and improve tax compliance and perform proper filing and paymentof taxes in accordance with the local tax-related laws and international rules based on its business andsustainable development strategies.

Governance
The Foster Group has established the global tax department within the Corporate Management Divisionat headquarters to manage and monitor tax risks. Critical issues are reported to the top management
including Board of Directors for their directions.

Dealings Between Affiliated Companies
The Foster Group determines prices for dealings between its affiliated companies based on the principles
of pricing between independent companies.
Our measures to tackle COVID-19 (Overseas manufacturing sites)

Relationship with Tax Authorities

Disaster Drills at Overseas Sites
The Foster Group appoints a person in charge of BCP for each overseas site and implements disaster drills
on a regular basis to improve our employees’ awareness of disaster prevention.

The Foster Group works to reduce tax uncertainty by responding in good faith to prior consultations andrelated information disclosure to tax authorities. In addition, it uses the Advance Pricing Agreement (APA)
to obtain prior agreement with tax authorities.

Transparency

Firefighting drill (China)

Water discharge drill (Myanmar)

Life-saving drill (Vietnam)

The Foster Group prepares and discloses its financial statements in compliance with the Financial
Instruments and Exchange Act and related laws. It also discloses tax information in the financial statements
based on the related laws and regulations.
The Group also understands that the BEPS (Base Erosion and Profit Shifting) project by OECD is essential
to prevent international tax avoidance and abusive tax planning and to secure the transparency of taxes
through the disclosure of tax information. As such, the Group follows proper reporting procedures to
CbCR (Country-by-Country Reporting).

Future Plan
In addition to drawing up and executing a business continuity plan (BCP) to tackle the threat of COVID-19,
which has yet to show a sign of abating, we will aim to build a BCP system that will allow us to respondflexibly even to such an international emergency. We will aim to be a company which is trusted and seen
as reliable by our stakeholders.

Corporate
Philosophy

Top Message

Corporate Profiles/ Financial Information/
Corporate History

Foster Group ESG Management

Environment

SocialGovernance
Governance

External Recognition

Data Table

Sustainability Report 2021
(English version)

Information Security and Personal Information Protection
Policies
Foster Electric Co., Ltd. and its subsidiaries (“the Group”) recognize the importance of securing the trustof customers, suppliers, shareholders, employees and other stakeholders based on its corporate creedof “Sincerity”. Appropriate management of information assets is an important part of the management
agenda.
To appropriately protect and handle the information assets possessed by the Group, we define theinformation security policies as follows:- Information security management system- Development of internal regulations regarding information security- Implementation of information security measures- Provision of information security education- Implementation of continuous improvement activities

29

Main Activities and Measures
The Group takes appropriate measures as organizational, human, physical and technical safety
management initiatives against security threats, which change daily, to prevent unauthorized access,damage, leakage, falsification and other accidents involving information assets.

Mid-term Plan
- Penetration of the infrastructure for information protection and management on a global basis.
- Implementation of risk analyses and plan for concrete preventive measures based on the BusinessContinuity Plans (BCPs).
- Assurance of the awareness of the information security policies and respective regulations■	Information Security Policies:
https://www.foster-electric.com/security/index.html

Activity Promotion Structure

Information Security Committee
Chief Executive

Chairperson

Task force

Corporate
Philosophy

Top Message

Committee
memberCommittee
memberCommittee
memberCommittee
memberVice Chairperson

Secretariat

Information Security Auditor

For protection and appropriate management of all information assets possessed by the Group, it hasestablished the Information Security Committee, which mainly consists of management, to maintain thesystem for understanding the management status of information security and prompt implementation ofrequired security measures according to the risk analysis results.

Chief of Secretariat

Secretariat at
the headquarters

Secretariat at eachGroup company

Corporate Profiles/ Financial Information/
Corporate History

Foster Group ESG Management

Environment

SocialGovernance
Governance

External Recognition

Data Table

Sustainability Report 2021
(English version)

External Recognition

30

EcoVadisFebruary 2019: We received a Silver ranking (=top 30%, we ranked top 10%) from EcoVadis, France for the CSR assessment
to evaluate suppliers based on the following categories: “Environmental”, “Labor & Human Rights”, “Ethics”, and “Sustainable
Procurement”.

【Japan】

New Diversity Management Selection 100 (fiscal 2017)

VietnamMarch 2018: Recognized for our activities to promote diversity and achieve work-life balance, we wereselected as one of the winners of the New Diversity Management Selection 100 (fiscal 2017) by the Ministryof Economy, Trade and Industry.

FOSTER ELECTRIC (BAC NINH) CO., LTD.
Awarded for tax policy and legal compliance by Bac Ninh Tax Department

Top 100 Telework Pioneers (fiscal 2018)

October 2020: We were awarded by the director-general of Bac Ninh Tax Department in recognitionof our tax policy and legal compliance in fiscal 2019.

November 2018: To realize a flexible workstyle using ICT that fits individuals’ lifestyles and is free fromrestrictions such as time and place, we have introduced the work-at-home program and implemented
initiatives to establish the environment. Evaluated for such activities, we were selected as one of the winners of
the Top 100 Telework Pioneers (fiscal 2018) by the Ministry of Internal Affairs and Communications.

Awarded for our activities as model workers and our labor union by the
Vietnam Trade Union
January 2021: We were awarded by the Vietnam Trade Union in recognition of our excellent
activities as model workers and the establishment of our robust trade union.

“Kurumin” Certification (obtained in 2021)

January 2021: We have been working to enhance programs for helping employees balance work and family
life. These efforts are aimed at creating an environment where employees with small children can work withpeace of mind, in accordance with the Act on Advancement of Measures to Support Raising Next-Generation
Children. Because of these initiatives, we were granted the “Kurumin” Certification by the Minister of Health,Labour and Welfare in January 2021, recognized as a company supporting childcare. We received thiscertification for the second time following 2014.

Awarded by Bac Ninh Trade Union in gratitude for our “efforts on the treatmentof employees”

January 2021: In fiscal 2020, we were awarded by Bac Ninh Trade Union in gratitude for our “effortson the treatment of employees”.

FOSTER ELECTRIC (DANANG) CO., LTD.

2021 Health & Productivity Management Outstanding Organization (Large Enterprise
Category)

Recognized for our excellent occupational safety activities by the Labor
Safety Department

March 2021: Recognized for our initiatives that consider employee’s health from the management
perspective and practice it strategically, we were certified as one of the winners of the 2021
Health & Productivity Management Outstanding Organizations (Large Enterprise Category) by the
Ministry of Economy, Trade and Industry and Japan Health Council.

April 2021: We were recognized by the director-general of the Labor Safety Department with anaward for outstanding achievements from our labor safety activities in fiscal 2019.

Awarded for donations and contributions by the Red Cross Society of Cam Le
district, Da Nang

Certification of Excellent Company in Health: Gold Accreditation

January 2021: We were granted the “Golden Heart Award” by the Red Cross Society of Cam Le
district in recognition of our donation and contribution activities for impoverished people and people
affected by residues of Agent Orange that was used in the Vietnam War.

January 2021: Highly evaluated for our active initiatives to realize health and productivity management, we
received the Certification of Excellent Company in Health: Gold Accreditation from the Tokyo Promotion
Council for Healthy Company Declaration in December 2018. The certification was renewed again in 2021,
following 2020.

Granted a distinguished service award by the People’s Committee of Cam Le
district, Da Nang as a leading role model in Red Cross activities

Selected as a constituent of the S&P/JPX Carbon Efficient Indices by the Government
Pension Investment Fund (GPIF)

July 2021: We were granted the award by the chairman of the People’s Committee of Cam Le
district in recognition of our activities as a leading role model in Red Cross activities during 2015
to 2020.

We have been selected as a constituent of the S&P/JPX Carbon Efficient Index (evaluated based on thedisclosure status and results of CO2 emissions data), an ESG index which was adopted by the GPIF since
2018.

Korea

Selected as a constituent of SOMPO Sustainability Index (fiscal 2020)

ESTEC CORPORATIONMarch 2021: We have been selected as a constituent of the SOMPO Sustainability Index for the fifth
consecutive year. The index was originally launched by Sompo Japan Nipponkoa Asset Management (SNAM)
in August 2012, and places weight on the ESG evaluation by rating firms.

Granted an “Award for Distinguished Services with Neighborly Love” inrecognition of our proactive fund-raising activities

September 2020: We were granted an “Award for Distinguished Services with Neighborly Love”
by the Gyeongnam Social Welfare Community Fund in recognition of our proactive fund-raising
activities.

【Overseas sites】
GlobalSelected as a constituent of FTSE Blossom Japan Index

June 2021: Created by FTSE Russell, which is a global index provider, the FTSE Blossom Japan Index isdesigned to measure the performance of Japanese companies that demonstrate strong environmental, socialand governance (ESG) practices. The ESG index provides a performance benchmark and tool for the creationof index-tracking investments, financial instruments or fund products focused on sustainable investment.
Details of the FTSE Blossom Japan Index are available here.

【Surveys from External Organizations】

The Foster Group responds sincerely to the CSR surveys received from external investigatory bodies.
In fiscal 2020, we responded to a total of nine surveys, including those on SDGs, CSR, ESG, and SRI. Notably, as a result of the“Toyo Keizai CSR Ranking”, which we have set as a KPI for our CSR initiatives, we were ranked 255th (out of 1,614 companies
in total). We will continue to respond to survey requests from external investigatory bodies with sincerity.

CDP

December 2021: We received “B-: Management Level” both for Climate Change and Water Security category
for the 2020 survey by CDP, a British non-profit organization that evaluates and discloses information onorganization’s environmental management. (CDP applies an eight-point scale consisting of A, A-, B, B-, C,
C-, D, and D-.)

Corporate
Philosophy

Top Message

Corporate Profiles/ Financial Information/
Corporate History

Foster Group ESG Management

Environment

SocialGovernance

External
Recognition
External
Recognition

Data Table

Sustainability Report 2021
(English version)

31

Data Table
Economic Data

202-2 Proportion of senior management hired from the local community

201-2 Financial implications and other risks and opportunities due to climate change
Costs for measures taken to manage risks and opportunities - total environmental protection expenditures and investments by category

Environmental preservation cost (classified by business operations)
Location

Key activity andthe outcome

Category(1) Business area cost

Breakdown

Japan

Investment
Cost(Unit: one (Unit: one
thousand thousand
yen)
yen)
0

18,131

Domestic Companies: FOSTER ELECTRIC CO., LTD. (Headquarters),
FOSTER TRANSPORTATIONS LTD., FOSTER ELECTRONICS LTD.

Japan

Asia

78
88

North America

FOSTER ELECTRIC (U.S.A.), INC. and group companies

100

FOSTER ELECTRIC (EUROPE) GmbH and group companies

100

1,894

(1)-2 Global environmental
conservation costs

Prevention of global warming
and energy-saving measures

0

2,114

Europe(1)-3 Resource circulation costs

Waste disposal andrecycling0

14,122*1 Senior management: Department managers or higher, excluding directors.
*2 Local community: The country and region to which each site above belong.
*3 Significant locations of operations: The headquarters and 17 main sites that are checked based on J-SOX internal control framework.

0

0

0

9,685

0

1,554,511

Research and development, etc.
Tree planting, etc.

Total

0

207

0

0

0

1,582,533

204-1 Proportion of spending on local suppliers
Content

Location*1

Ratio (%)
The same ratio formale and female

Location*1
Domestic Companies: FOSTER ELECTRIC CO., LTD. (Headquarters),
FOSTER TRANSPORTATIONS LTD., FOSTER ELECTRONICS LTD.

107

FOSTER ELECTRIC CO., (HONG KONG) LTD. and group companies

102

FOSTER ELECTRIC (SINGAPORE) PTE. LTD. and group companies

N/A

FOSTER ELECTRIC (VIETNAM) CO., LTD. and group companies

109

ESTec CORPORATION and group companies

124

North America

FOSTER ELECTRIC (U.S.A.), INC. and group companies

100

EuropeFOSTER ELECTRIC (EUROPE) GmbH and group companies

116*1 Significant locations of operations: The headquarters and 17 main sites that are checked based on J-SOX internal control framework.

Corporate Profiles/ Financial Information/
Corporate History

Foster Group ESG Management

Percentage*2 (%)

All procurement sites in China

Local procurement rate of materials in China

89

All procurement sites in
ASEAN

Local procurement rate of materials in Vietnam and Myanmar

65*1 Local / Significant locations of operation: The above-mentioned areas where Foster’s manufacturing sites reside.
*2 Indicates the percentage in transaction amount for material procurement with corporations in above sites.

205-1 Operations assessed for risks related to corruption
Total number ofoperations

Location
Domestic andoverseas companies

202-1 Ratios of standard entry level wage by gender compared to local minimum wage

Top Message

FOSTER ELECTRIC (VIETNAM) CO., LTD. and group companies
ESTec CORPORATION and group companies* “Investment” refers to equipment investments for the purpose of environmental conservation. “Cost” refers to personnel and miscellaneous
expenses/costs incurred for environmental conservation activities.

Corporate
Philosophy

1000(6) Environmental
damage handling
costs

Asia

78

FOSTER ELECTRIC (SINGAPORE) PTE. LTD. and group companies

Air and water control-related
prevention countermeasures(5) Social activity costs

Japan

100

FOSTER ELECTRIC CO., (HONG KONG) LTD. and group companies(1)-1 Pollution prevention costs

FOSTER(2) Upstream/
Green purchasing expenses
ELECTRIC
downstream costCO., LTD.
Environmental education, EMS(Headquarters) (3) Administration costs
construction expenses etc.
(4) R&D costs

Percentage (%)
of senior management*1
hired from the local
community*2

Location*3

Domestic and overseas locations of operations

Percentage (%)
13

72

There were no significant risks related to corruption identified by the risk assessment.

205-2 Communication and training about anticorruption policies and procedures
Total number and percentage of
notifications on anticorruption
related organizations policies andprocedures.

Location

Governance body members
Total

Percentage (%)

Japan

Domestic Companies: FOSTER ELECTRIC CO., LTD.
(Headquarters), FOSTER TRANSPORTATIONS LTD., FOSTER
ELECTRONICS LTD.

26

100

Overseas

All overseas sites

81

88

Environment

SocialGovernance

External Recognition

Data
Data
Table
Table

32

Sustainability Report 2021
(English version)

Environmental Data

302-3 Energy intensity / 302-4 Reduction of energy consumption / 305-1 Direct (Scope 1) GHG emissions /305-2 Energy indirect (Scope 2) GHG emissions / 305-4 GHG emissions intensity /305-5 Reduction of GHG emissions

301-2 Recycled input materials used
Location
Overseas

Category

Percentage (%)

All procurement sites (China/Vietnam/Myanmar)

8

2012

2013

2014

2015

2016

2017

2018

2019

2020

2,198

2,403

2,431

2,155

2,549

2,381

1,745

1,290

1,026

* Percentage of recycled materials among all the resin materials purchased

Scope 1 (Direct greenhouse gas emission
from business activities)

302-1 Energy consumption within the organization

Scope 2 (Indirect greenhouse gas emission(Unit: t-CO2)
due to energy usage from business activities)

87,232 91,545 88,568 86,668 88,328 87,828 71,122 58,457 51,293

Scope1+2 total(Unit: t-CO2)

89,430 93,948 90,999 88,823 90,877 90,209 72,868 59,747 52,319

Sales (JPY)(100 million yen)

1,436

1,660

1,891

1,910

1,611

1,849

1,403

1,073

852

Per sales unit (JPY)(Unit: t-CO2 /100 million yen)

62.3

56.6

48.1

46.5

56.4

48.8

51.9

55.7

61.4

Location

Japan

Asia

Purchased
Electricity(MWh)Gasoline(liter)DieselFuel(liter)NaturalGas(liter)LPG(liter)Total Fuel
Consumption
in theOrganization
(MWh)

City
Gas
(m3)

Domestic Companies: FOSTER ELECTRIC
CO., LTD. (Headquarters), FOSTER
TRANSPORTATIONS LTD., FOSTER
ELECTRONICS LTD.

1,981

75,419000

10,334

2,834

GUANGZHOU PANYU JIU SHUIKENG FOSTER ELECTRIC FACTORY(*outsourcee)

29,39737,407

821

0

0

0

29,765

FOSTER ELECTRIC CO., (NANNING) LTD.

8,963

24,407

786

0

0

0

9,206

FOSTER ELECTRIC CO., (HEYUAN) LTD.

16,29339,8745,271

056,990017,420

FOSTER ELECTRIC CO., (TAIWAN) LTD.

12

2,006

0

0

0

0

31

FOSTER ELECTRIC (VIETNAM) CO., LTD.

9,691

13,676

3,880

11,9550

0

10,032

FOSTER ELECTRIC (DA NANG) CO., LTD.

4,173

8,239

5,031

13,168

0

0

4,491

FOSTER ELECTRIC (QUANG NGAI) CO., LTD.

977

2,989

110

4,961

0

0

1,077

FOSTER ELECTRIC (BAC NINH) CO., LTD.

17,212

29,571

14,35647,7650018,321FOSTER ELECTRIC (THILAWA) CO., LTD.

6,460

4,132

2,998

0

0

0

6,531

North
America

FOSTER ELECTRIC (U.S.A.), INC.
(EL PASO OPERATIONS)

690

2,778

0

0

76,3310

1,639EuropeFOSTER ELECTRIC (EUROPE) GmbH andgroup companies

68

1,560

1,812

0

0

0

102

95,917

242,058

35,06577,849133,321

10,334

101,449

Total* Calorific Value (Fuel): Japan/Overseas: Factor based on the “Greenhouse gas emissions calculation and report manual” released by the
Ministry of the Environment, Ministry of Economy, Trade and Industry.

(Unit: t-CO2)

Scope
FOSTER ELECTRIC CO., LTD. (Headquarters), 2 domestic and 11 overseas sites
Standards used for the calculation	“Greenhouse gas emissions calculation and report manual” from the Ministry of the Environment and theMinistry of Economy, Trade and Industry, and “Corporate Standard”, “Corporate Value Chain (Scope 3)
Standard”, “Scope 2 Guidance”, and “Scope 3 Calculation Guidance” from GHG Protocol
CO2 conversion factor (Electric)	Japan: Ministry of the Environment, 2018 factor based on CO2 conversion factor of electric power
supplier (2020)
Overseas: Fiscal 2018 factor based on IEA Emissions Factors 2020
CO2 conversion factor (Fuel)	Japan/overseas: Factor based on the “Greenhouse gas emissions calculation and report manual”
released by the Ministry of the Environment, Ministry of Economy, Trade and Industry.
Global warming potential
Incorporated 100 year value of IPCC Fifth Assessment Report (AR5)Based on the “Low Carbon Action Plan” for Japanese Electrical and Electronics Industries, we have set the mid-term target for 2020 to reduceby an annual average of 1% per sales unit from a 2012 base-year.

Category (CO2 equivalent)
GHG(greenhouse
gas)

Unit

2020

Carbon dioxide (CO2)t-CO252,547

Methane (CH4)

t-CO2

0.022

Dinitrogen monoxide (N2O)

t-CO2

0.045

305-3 Other indirect (Scope 3) GHG emissions
Category

Emissions (t-CO₂)

1. Purchased goods and services

186,672

2. Capital goods
Upstreamcategories

371

3. Fuel- and energy-related activities (not included in Scope 1 or Scope 2)

6,764

4. Upstream transportation and distribution

16,6405. Waste generated in operations

2,189

6. Business travel352

7. Employee commuting
Downstream
categories

3,562
2,237

9. Downstream transportation and distribution
11.Use of sold products

155,887

12. End-of-life treatment of sold products

9,095

Total

383,769

Scope: FOSTER ELECTRIC CO., LTD. (Headquarters), 2 domestic and 11 overseas sites

Corporate
Philosophy

Top Message

Corporate Profiles/ Financial Information/
Corporate History

Foster Group ESG Management

Environment

SocialGovernance

External Recognition

Data
Data
Table
Table

Sustainability Report 2021
(English version)

303-3 Water withdrawal / 303-4 Water discharge / 303-5 Water consumption /306-1 Water discharge by quality and destinationJapan

306-2 Waste by type and disposal method
Waterdischarge(Unit: m3)

Water
withdrawal(Unit: m3)

Location
Domestic Companies: FOSTER ELECTRIC CO., LTD.
(Headquarters), FOSTER TRANSPORTATIONS LTD.,
FOSTER ELECTRONICS LTD.

7,635

Total water
consumption(Unit: m3)

7,253

425,327

340,262

85,065

FOSTER ELECTRIC CO., (NANNING) LTD.

45,71936,575

9,144

FOSTER ELECTRIC CO., (HEYUAN) LTD.

148,908

119,126

29,782

FOSTER ELECTRIC CO., (TAIWAN) LTD.

120

114

6

FOSTER ELECTRIC (VIETNAM) CO., LTD.

66,62553,30013,325

FOSTER ELECTRIC (DA NANG) CO., LTD.

35,81228,6507,162

FOSTER ELECTRIC (QUANG NGAI) CO., LTD.

4,169

3,335

834

FOSTER ELECTRIC (BAC NINH) CO., LTD.

68,77155,017

13,754

FOSTER ELECTRIC (THILAWA) CO., LTD.

95,62976,503

19,126

North America FOSTER ELECTRIC (U.S.A.), INC. (EL PASO OPERATIONS)

1,586

1,269

317

12

11

1

900,313

721,415

178,898

EuropeFOSTER ELECTRIC (EUROPE) GmbH and group companies
Total

Category

Water
withdrawal(Unit: m3)

Waterdischarge(Unit: m3)

Hazardous waste (Unit: ton)

Location
Japan

382

GUANGZHOU PANYU JIU SHUI KENG FOSTER ELECTRIC
FACTORY (*outsourcee)

Asia

33

Asia

North
America

Total waste

0.00

0.66

GUANGZHOU PANYU JIU SHUI KENG FOSTER
ELECTRIC FACTORY (*outsourcee)

70.30

0.00

70.30

FOSTER ELECTRIC CO., (NANNING) LTD.

19.17

0.00

19.17

FOSTER ELECTRIC CO., (HEYUAN) LTD.

42.40

0.00

42.40

FOSTER ELECTRIC (VIETNAM) CO., LTD.

33.56

5.88

27.68

FOSTER ELECTRIC (DA NANG) CO., LTD.

54.66

0.27

54.39

FOSTER ELECTRIC (QUANG NGAI) CO., LTD.

9.12

0.00

9.12

FOSTER ELECTRIC (BAC NINH) CO., LTD.

79.04

54.49

24.55

FOSTER ELECTRIC (THILAWA) CO., LTD.

14.94

0.00

14.94

FOSTER ELECTRIC (U.S.A.), INC.
(EL PASO OPERATIONS)

0.00

0.00

0.00

323.8560.64

263.21Non-hazardous waste (Unit: ton)

Location

Total water
consumption(Unit: m3)

Landfill

0.66

Total

Japan

Recycling

FOSTER ELECTRIC CO., LTD. (Headquarters)

Total waste

Recycling

Landfill

FOSTER ELECTRIC CO., LTD. (Headquarters)

58.90

54.00

4.90

GUANGZHOU PANYU JIU SHUI KENG FOSTER
ELECTRIC FACTORY (*outsourcee)

741.00679.0062.00

FOSTER ELECTRIC CO., (NANNING) LTD.

109.820.00

109.82

FOSTER ELECTRIC CO., (HEYUAN) LTD.

269.77219.8549.92

FOSTER ELECTRIC (VIETNAM) CO., LTD.

499.98355.05144.93
46.98

Surface water

-

-

-

Groundwater

-

-

-

Seawater---

FOSTER ELECTRIC (DA NANG) CO., LTD.

136.0989.11

Produced water

-

-

-

FOSTER ELECTRIC (QUANG NGAI) CO., LTD.

38.19

25.70

12.49

Third-party water

900,313

721,415

178,898

FOSTER ELECTRIC (BAC NINH) CO., LTD.

977.71

609.61368.10900,313

721,415

178,898

FOSTER ELECTRIC (THILAWA) CO., LTD.

161.1216.50

144.62

FOSTER ELECTRIC (U.S.A.), INC.
(EL PASO OPERATIONS)

397.22239.72157.503,389.80

2,288.54

1,101.26

Total

Asia

North
America

Total

308-1 New suppliers that were screened using environmental criteria
Percentage of new suppliers that were screened based on the environmental criteria

Location

Percentage (%)

Domestic andAll procurement sites (Japan/China/Vietnam/Myanmar)
overseas companies

100* We distribute our environmental regulations to all the suppliers, update them and obtain environment-related materials.

Corporate
Philosophy

Top Message

Corporate Profiles/ Financial Information/
Corporate History

Foster Group ESG Management

Environment

SocialGovernance

External Recognition

Data
Data
Table
Table

Sustainability Report 2021
(English version)

34

Social Data
401-1 New employee hires and employee turnover

Return to work rate / Retention rate

Total number of employees due
to and did return to work afterparental leave

New employee hires
By gender

Location
Male

Japan

Domestic Companies: FOSTER
ELECTRIC CO., LTD. (Headquarters),
FOSTER TRANSPORTATIONS LTD.,
FOSTER ELECTRONICS LTD.

Overseas All overseas sites

FemaleBy age group
Under
30

Total

30 - 50

Location

Over 50

Total

25

8

33

20

11

2

33

1,252

5,236

6,488

4,620

1,835

33

6,488

Location
Male

Japan

Domestic Companies: FOSTER
ELECTRIC CO., LTD. (Headquarters),
FOSTER TRANSPORTATIONS LTD.,
FOSTER ELECTRONICS LTD.

Overseas All overseas sites

Female

31
1,924

40

5,754

30 - 50

Over 50

13

19

8

7,678

All overseas sites

4,536

3,040

Total

Total

102

7,678

Japan

Domestic Companies: FOSTER
ELECTRIC CO., LTD. (Headquarters),
FOSTER TRANSPORTATIONS LTD.,
FOSTER ELECTRONICS LTD.

Overseas All overseas sites

Contents
Sales activity allowance (sales personnel only), retirement allowance

Overseas

11 Significant locations ofoperations

Life insurance, medical insurance, retirement allowance, disability and illness
compensation, parental leave, etc.

4

7

100

100

100

170

859

1,029

99

92

93

Location

7

5

12

100

100

100

165

892

1,057

81

61

63

Employee Category

Overseas All overseas sites

Corporate
Philosophy

Top Message

Total number of employees thattook parental leave*²
MaleFemale
Total

507

159

666

3

9

12

3,169

13,464

16,633

171

994

1,165

Corporate Profiles/ Financial Information/
Corporate History

Rate*1

Fatalities

FY2018 FY2019 FY2020 FY2018 FY2019 FY2020

Total number of employees that were entitled to / took parental leave

Domestic Companies: FOSTER
ELECTRIC CO., LTD. (Headquarters),
FOSTER TRANSPORTATIONS LTD.,
FOSTER ELECTRONICS LTD.

12 months retention rate of
employees returning from parental
leave (in the prior reporting period)(%)
Male
FemaleTotal

i. The number and rate of fatalities as a result ofwork-related injury

401-3 Parental leave

Japan

Total

3

*1 Significant locations of operations: The headquarters and 17 main sites that are checked based on J-SOX internal control framework.

Location

Female403-9 Work-related injuries

Japan

FOSTER ELECTRIC CO., LTD.
(Headquarters)

Total number of employees that wereentitled to parental leave*¹
MaleFemaleTotal

MaleTotal number of employees retained
12 months after returning to work
following a period of parental leave(in the prior reporting period)
Male
FemaleTotal

Location40

401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees
Location*1

Overseas

By age group
Under
30

Total

9

Japan

Female*1 Total number of employees that were entitled to parental leave during the reporting period*2 Total number of employees that were entitled to and took parental leave during the reporting period

Employee turnoverBy gender

Male
Domestic Companies: FOSTER
ELECTRIC CO., LTD. (Headquarters),
FOSTER TRANSPORTATIONS LTD.,
FOSTER ELECTRONICS LTD.

Return to work rate for employees
due to return to work after taking
parental leave (%)

Foster Group ESG Managementa. For all employees
Domestic Companies:
FOSTER ELECTRIC CO.,Japan LTD. (Headquarters), FOSTER b. F or all workers who are not employees but
whose work and/or workplace is controlled
TRANSPORTATIONS LTD.,by the organization
FOSTER ELECTRONICS LTD.
Overseas

All overseas sites

0

0

0

0.00

0.00

0.00

0

0

0

0.00

0.00

0.00

a. For all employees

0

0

1

0.00

0.00

0.03

b. F or all workers who are not employees
but whose work and/or workplace iscontrolled by the organization

0

0

0

0.00

0.00

0.00

Traffic
accident which
occurred while
commutingiv. The main types of work-related injury

Environment

SocialGovernance

External Recognition

Data
Data
Table
Table

Sustainability Report 2021
(English version)

35

403-10 Work-related ill health

Location

ii. The number and rate of high-consequencework-related injuries (excluding fatalities)

Employee Category

Injuries

a. For all employees

Rate*2

Location

FY2018 FY2019 FY2020 FY2018 FY2019 FY2020
Domestic Companies:
a. For all employees
FOSTER ELECTRIC CO.,Japan LTD. (Headquarters), FOSTER b. F or all workers who are not employees but
whose work and/or workplace is controlled
TRANSPORTATIONS LTD.,by the organization
FOSTER ELECTRONICS LTD.
Overseas

All overseas sites

0

0

1

0.00

0.00

0.82

0

0

0

0.00

0.00

0.00

a. For all employees

0

1

0

0.00

0.02

0.00

b. F or all workers who are not employees
but whose work and/or workplace iscontrolled by the organization

0

0

0

0.00

0.00

0.00

iv. The main types of work-related injury

Location

Employee Category

Injuries

0Overseas

0

0

0

0

0

0

All overseas sitesiii. The work-related hazards that pose a risk of ill health

Location

Rate*3i. The number of fatalities as a resultof work-related ill healthii. The number of cases ofrecordable work-related ill health

FY2018FY2018

0.00

0.79

0.00

2

0

0

1.61

0.00

0.00

Overseasa. For all employees

0

46

28

0.00

1.02

0.74

iii. The work-related hazards that pose a risk of ill healthb. F or all workers who are not employees
but whose work and/or workplace iscontrolled by the organization

84

0

2

1.58

0.00

2.13

404-1 Average hours of training per year per employee
Location

FY20181,244,382

FY2019*2 Rate of high-consequence work-related injuries =(excluding fatalities)*3 Rate of recordable work-related injuries

Top Message=

FY20201,268,573

1,213,116

86,077

96,21745,128,065

37,869,378

Japan

Male

Domestic Companies:
FOSTER ELECTRIC CO.,LTD. (Headquarters), FOSTER
TRANSPORTATIONS LTD.,
FOSTER ELECTRONICS LTD.

Overseas All overseas sites

53,053,768

b. F or all workers who are not employees
but whose work and/or workplace iscontrolled by the organization*1 Rate of fatalities as a result of work-related injury =All overseas sites

FY2019FY2020FY2019FY2020

0

0

0

0

0

0

0

0

0

0

0

0

Average hours of training (hours)
Bone fracture, Bone fracture,
cutting, bruise, cutting, bruise,
sprain, etc.
sprain, etc.

v. The number of hours worked

a. For all employees

Corporate
Philosophy

00Domestic Companies:
a. For all employees
FOSTER ELECTRIC CO.,Japan LTD. (Headquarters), FOSTER b. F or all workers who are not employees but
whose work and/or workplace is controlled
TRANSPORTATIONS LTD.,by the organization
FOSTER ELECTRONICS LTD.

FY2020

0

1

Employee Category

FY201900

Lower backpain, cutting,sprain, bruise,bone fracture

FY20200

Domestic Companies: FOSTER ELECTRIC
CO., LTD. (Headquarters), FOSTERJapan
TRANSPORTATIONS LTD., FOSTER
ELECTRONICS LTD.

Location

All overseas sites

FY2018FY20190iii. The number and rate of recordable
work-related injuries

iv. The main types of work-related injury

Overseas

FY2018Domestic Companies: FOSTER ELECTRIC
CO., LTD. (Headquarters), FOSTERJapan
TRANSPORTATIONS LTD., FOSTER
ELECTRONICS LTD.

b. For all workers who are not employees but whose work and/or
workplace is controlled by the organization

FY2018 FY2019 FY2020 FY2018 FY2019 FY2020

All overseas sites

ii. The number of cases ofrecordable work-related ill healthBone fracture

Domestic Companies:
a. For all employees
FOSTER ELECTRIC CO.,Japan LTD. (Headquarters), FOSTER b. F or all workers who are not employees but
whose work and/or workplace is controlled
TRANSPORTATIONS LTD.,by the organization
FOSTER ELECTRONICS LTD.
Overseasi. The number of fatalities as a resultof work-related ill health470,658

Japan

Number of hours worked

Management

GeneralManagement/
General Total

11

13

11

11

11

11

22

16

17

37

17

17

Management

GeneralManagement/
General Total

Percentage (%)
Location

Number of fatalities as a result of work-related injury × 1,000,000

Number of high-consequence work-related injuries (excluding fatalities) × 1,000,000

Male/
FemaleTotal

404-3 Percentage of employees receiving regular performance and career development reviews

938,802

Number of hours worked

FemaleMale

Domestic Companies:
FOSTER ELECTRIC CO.,LTD. (Headquarters), FOSTER
TRANSPORTATIONS LTD.,
FOSTER ELECTRONICS LTD.

Overseas All overseas sites

FemaleMale/
Female
Total

86

79

84

94

82

84

63

55

56

82

55

56

Number of recordable work-related injuries × 1,000,000
Number of hours worked

Corporate Profiles/ Financial Information/
Corporate History

Foster Group ESG Management

Environment

SocialGovernance

External Recognition

Data
Data
Table
Table

Sustainability Report 2021
(English version)

36405-1 Diversity of governance bodies and employees
410-1 Security personnel trained in human rights policies or procedures

Governance bodies (by gender/age)

Percentage (%)

Location

Japan

Male

Domestic Companies:
FOSTER ELECTRIC CO.,LTD. (Headquarters), FOSTER
TRANSPORTATIONS LTD.,
FOSTER ELECTRONICS LTD.

FemaleUnder 30

30 - 50

91

9

0

3

97

93

7

0

26

74

Employee (by gender/age)

Japan

Japan

Total personnel

Domestic Companies: FOSTER ELECTRIC
CO., LTD. (Headquarters), FOSTER
TRANSPORTATIONS LTD., FOSTER
ELECTRONICS LTD.

Overseas All overseas sites

Overseas All overseas sites

Male

Domestic Companies:
FOSTER ELECTRIC CO.,LTD. (Headquarters), FOSTER
TRANSPORTATIONS LTD.,
FOSTER ELECTRONICS LTD.

FemaleUnder 3076

24

30 - 50

9

19

81

35

3

3

100

162

159

98

* The above includes employees from third party organizations.

Employee training

Over 50

48

Location
43
Japan

Overseas All overseas sites

Percentage (%)

Trained personnel412-2 Employee training on human rights policies or procedures

Percentage (%)

Location

Security personnel

Location

Over 5062

2

Total hours (hours)

Domestic Companies: FOSTER ELECTRIC
CO., LTD. (Headquarters), FOSTER
TRANSPORTATIONS LTD., FOSTER
ELECTRONICS LTD.

Overseas All overseas sites

Employeepercentage (%)

115

88

103,67896405-2 Ratio of basic salary and remuneration of women to men
414-1 New suppliers that were screened using social criteria

Ratio of the basic salary and remuneration of women to men

Ratio (%)*2

Location

*1

Japan

Management

FOSTER ELECTRIC CO., LTD.
(Headquarters)

17 significant locations ofOverseas
operations

Percentage of new suppliers that agreed to Foster’s CSR procurement criteria

Location

General

100

100

100

100

*1 Significant locations of operations: The headquarters and 17 main sites that are checked based on J-SOX internal control framework.
*2 Ratio of the amount paid to men when the amount paid to women is set at 100.

100

Percentage of replies received from new suppliers that agreed to CSR procurement based on the Foster’s Code of Conduct418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data

Ratio of remuneration of women to men

Total number of substantiatedcomplaints received concerning
breaches of customer privacy

Ratio (%)*2

Location*1

Management

GeneralJapan

FOSTER ELECTRIC CO., LTD.
(Headquarters)

107

114

Overseas

17 significant locations ofoperations

107

133

Top Message

Corporate Profiles/ Financial Information/
Corporate History

Complaints
received fromoutside parties andsubstantiated by
the organization

Location*1 Significant locations of operations: The headquarters and 17 main sites that are checked based on J-SOX internal control framework.
*2 Ratio of the amount paid to men when the amount paid to women is set at 100.

Corporate
Philosophy

Percentage (%)

DomesticandAll procurement sites
overseascompanies

Foster Group ESG Management

DomesticandAll the domestic and overseas companies
overseascompanies

Environment

Social0

GovernanceTotal number ofidentified leaks,
thefts, or losses ofcustomer data

Complaints from
regulatory bodies

0

External Recognition

0

Data
Data
Table
Table

Sustainability Report 2021
(English version)

37

GRI Content Index
GeneralDisclosures
Organizational
ProfileGRI
Standard
No.

Name of the organization

P3-4-

Corporate profile and financial information
 Securities report (available in Japanese)

102-2

Activities, brands, products, and services

P3-4-

Corporate profile and financial information
 Securities report (available in Japanese)

Location of headquarters

P3-4-

Corporate profile and financial information
 Securities report (available in Japanese)

Governance

GRI
Standard
No.

Disclosure102-26

Role of highest governance body in setting
purpose, values, and strategy

P5-9

Foster Group ESG Management102-27

Collective knowledge of highest governance
body

P5-9

Foster Group ESG Management102-28

Evaluating the highest governance body’s
performanceP10-13
P14-24
P25-29-Environment
SocialGovernance Securities report (available in Japanese)

Identifying and managing economic,
environmental, and social impacts

P5-9

Foster Group ESG Management

Page Number / URL

Location of operations

P3-4-

Corporate profile and financial information
 Securities report (available in Japanese)

102-5

Ownership and legal form

P3-4-

Corporate profile and financial information
 Securities report (available in Japanese)

102-29102-6Markets served

P3-4-

Corporate profile and financial information
 Securities report (available in Japanese)

102-30Effectiveness of risk management processes

P5-9

Foster Group ESG Management

P3-4-

Corporate profile and financial information
 Securities report (available in Japanese)

102-31

Review of economic, environmental, and social
topicsP5-9

Foster Group ESG Management

P3-4-

Corporate profile and financial information
 Securities report (available in Japanese)

102-32Highest governance body’s role insustainability reporting

P5-9

Foster Group ESG Management102-33

Communicating critical concerns

P25-29Governance102-34Nature and total number of critical concerns-

Not applicable

Scale of the organization

102-8

Information on employees and other workers

102-9

Supply chain-

 Securities report (available in Japanese)

102-10Significant changes to the organization andits supply chain-

 Securities report (available in Japanese)

102-35

Remuneration policies-

 Securities report (available in Japanese)

P10-13
P14-24
P25-29-Environment
SocialGovernance Securities report (available in Japanese)

102-36

Process for determining remuneration-

 Securities report (available in Japanese)

102-37

Stakeholders’ involvement in remuneration-

 Securities report (available in Japanese)

102-38Annual total compensation ratio- Securities report (available in Japanese)

Foster group ESG management
United Nations Global Compact

102-39Percentage increase in annual totalcompensation ratio- Securities report (available in Japanese)

102-40

List of stakeholder groups

P30

 General meeting of shareholders Financial result briefing
External Recognition

102-41

Collective bargaining agreements-

 Securities report (available in Japanese)

102-42

Identifying and selecting stakeholders

P5-9
P25-29Foster Group ESG Management
Governance102-43

Approach to stakeholder engagement

P5-9
P25-29Foster Group ESG Management
Governance102-44

Key topics and concerns raised

P5-9

Foster Group ESG Management102-45

Entities included in the consolidated financial
statements

P3-4-

Corporate profile and financial information
 Securities report (available in Japanese)

102-46

Defining report content and topic Boundaries

P5-9

Foster Group ESG Management102-47

List of material topics

P5-9

Foster Group ESG Management102-48

Restatements of information-

No restatement of information

102-49Changes in reporting-

No significant changes in reporting

102-50

Reporting period

P40

Provision of information regarding sustainability

102-51

Date of most recent report

P40

Provision of information regarding sustainability

102-52

Reporting cycle

P40

Provision of information regarding sustainability

102-53

Contact point for questions regarding thereportP40

Provision of information regarding sustainability

102-54Claims of reporting in accordance with the
GRI Standards

P40

Provision of information regarding sustainability

102-55GRI Content Index

P37-39102-56External assurance-

102-11

Precautionary principle or approach102-12External initiatives

P5-9
P8

102-13

Membership of associations

P8

United Nations Global Compact

102-14

Statement from senior decision-maker

P2

Top message

102-15Key impacts, risks, and opportunities

P2-

Top message
 Securities report (available in Japanese)

102-16

Values, principles, standards, and norms of
behavior

P1-

Corporate Philosophy
 Corporate Action Guidelines Code of conduct for staff

102-17

Mechanisms for advice and concerns about
ethics

P25-29Ethics and integrity

Corporate
Philosophy

GeneralDisclosures

102-4

102-7

Governance

Page Number / URL

102-1

102-3

Strategy

Disclosure102-18Governance structure-102-19Delegating authority

P25-29-102-20Executive-level responsibility for economic,
environmental, and social topics

102-21

Consulting stakeholders on economic,
environmental, and social topics

102-22Composition of the highest governancebody and its committees

102-23

P5-9
P5-9

Governance Corporate governance guidelines (available
in Japanese)
Governance Corporate governance guidelines (available
in Japanese)
Foster Group ESG Management
Foster Group ESG Management-

 Securities report (available in Japanese) Corporate governance guidelines (available
in Japanese)

Chair of the highest governance body- Securities report (available in Japanese)

102-24

Nominating and selecting the highest
governance body- Securities report (available in Japanese)

102-25

Conflicts of interest-

 Corporate governance guidelines (available
in Japanese)

Top Message

Stakeholder
engagement

Corporate Profiles/ Financial Information/
Corporate History

Foster Group ESG Management

Reporting practiceEnvironment

SocialGovernance

GRI content index
Not applicable

External Recognition

Data
Data
Table
Table

Sustainability Report 2021
(English version)

Management
Approach
GRI 103:
Management
Approach

GRI
Standard
No.
103-1

103-2

103-3

EconomyTopicsGRI
Standard
No.

GRI 201: Economic
Performance

201-1

Page Number / URL

Explanation of the material topic and its
Boundary

P5-9

The management approach and its
components

P5-9
P10-13
P14-24
P25-29Foster Group ESG Management
Environment
SocialGovernanceManagement approach

P5-9
P10-13
P14-24
P25-29Foster Group ESG Management
Environment
SocialGovernanceFoster Group ESG Management

Disclosure
Direct economic value generated anddistributed-

GRI 301: Materials

 Securities report (available in Japanese)

Financial implications and other risks andopportunities due to climate change

P31-36

201-3

Defined benefit plan obligations and otherretirement plans- Securities report (available in Japanese)-

201-4-a, 201-4-b
ii. Subsidies
Total amount of employment adjustment
subsidy and other subsidies received at sites
in Japan, the United States, and China: ¥735
million (Japan: ¥157 million, US: ¥157 million,
China: ¥420 million)

Financial assistance received fromgovernment

Data table

Ratios of standard entry level wage by
gender compared to local minimum wage

P31-36

Data table202-2

Proportion of senior management hired fromthe local community

P31-36

Data table203-1

Infrastructure investments and services
supported

P23-24Social Contribution

203-2

Significant indirect economic impacts-

GRI 204:
Procurement
Practices

204-1

Proportion of spending on local suppliers

GRI 205:
Anti-corruption

205-1

Operations assessed for risks related tocorruption

P31-36

Data table205-2

Communication and training about anticorruption policies and proceduresP31-36

Data table

205-3

Confirmed incidents of corruption andactions taken

-

206-1

Legal actions for anti-competitive behavior,anti-trust, and monopoly practices

GRI 206: Anticompetitive
Behavior

GRI 207: Tax

Page Number / URL

202-1

GRI 203: Indirect
Economic
Impacts

Environmental
TopicsGRI 302: Energy

201-2

201-4

GRI 202: Market
Presence

Disclosure

GRI 303: Water andEffluents

GRI 304:
Biodiversity-

Data table

Not applicableNot applicable
GRI 306: Effluentsand Waste

Corporate
Philosophy

Top Message

Corporate Profiles/ Financial Information/
Corporate History

Foster Group ESG Management

Disclosure

Page Number / URL

207-1

Approach to tax-

N/A (Confidentiality constraints)

207-2

Tax governance, control, and risk management-

N/A (Confidentiality constraints)

207-3

Stakeholder engagement and managementof concerns related to tax-

N/A (Confidentiality constraints)

207-4

Country-by-country reporting-

N/A (Confidentiality constraints)

301-1

Materials used by weight or volume-

N/A (Information unavailable)

301-2

Recycled input materials used

301-3

Reclaimed products and their packaging
materials

302-1

Energy consumption within the organization

P31-36

302-2

Energy consumption outside of the organization

-

302-3

Energy intensity

P31-36

Data table

302-4

Reduction of energy consumption

P31-36

Data table

302-5

Reductions in energy requirements ofproducts and services

P12
P31-36

Environmentally Friendly Products
Data table

303-1

Interactions with water as a shared resource

P11

Environmental Activities

303-2

Management of water discharge-related
impacts

P11

Environmental Activities

303-3

Water withdrawal

P31-36

Data table

303-4

Water discharge

P31-36

Data table

303-5

Water consumption

P31-36

Data table

304-1

Operational sites owned, leased, managed in,or adjacent to, protected areas and areas ofhigh biodiversity value outside protected areas-

Not applicable304-2

Significant impacts of activities, products,
and services on biodiversity-

N/A (Information unavailable)

304-3

Habitats protected or restored-

Not applicable

304-4

IUCN Red List species and national
conservation list species with habitats inareas affected by operations-

N/A (Information unavailable)

305-1

Direct greenhouse gas (GHG) emissions(Scope 1)

P31-36

Data table

305-2

Energy indirect greenhouse gas (GHG)
emissions (Scope 2)

P31-36

Data table

305-3

Other indirect (Scope 3) GHG emissions

P31-36

Data table305-4

GHG emissions intensity

P31-36

Data table

305-5

Reduction of GHG emissions

P31-36

Data table

305-6

Emissions of ozone-depleting substances
(ODS)

-

Not applicable

305-7

Nitrogen oxides (NOx), sulfur oxides (SOx),
and other significant air emissions-

Not applicable

306-1

Water discharge by quality and destination

P31-36

Data table

306-2

Waste by type and disposal method

P31-36

Data table

306-3

Significant spills-

Not applicable

306-4

Transport of hazardous waste-

Not applicable

306-5

Water bodies affected by water discharges
and/or runoff-

N/A (Information unavailable)

Not applicable
GRI 305: Emissions

P31-36

GRI
Standard
No.

Environment

Social38

P31-36

Governance-

Data table
N/A (Information unavailable)
Data table
N/A (Information unavailable)

External Recognition

Data
Data
Table
Table

Sustainability Report 2021
(English version)

Environmental
TopicsGRI 307:
Environmental
Compliance
GRI 308: Supplier
Environmental
Assessment

Social Topics
GRI 401:
Management
Approach
Disclosures

GRI 402: Labor/
Management
Relations
GRI 403:
Occupational Healthand Safety

GRI 404: Training
and Education

GRI 405: Diversity
and Equal
Opportunity

Corporate
Philosophy

GRI
Standard
No.

Disclosure

Page Number / URL

307-1

Non-compliance with environmental laws
and regulations

-

308-1

New suppliers that were screened using
environmental criteria

P31-36308-2

Negative environmental impacts in the
supply chain and actions taken-

Not applicable
Data table
No “negative environmental impacts in the
supply chain and actions taken”, according to
the SAQ result containing these questions.

39

Social Topics

GRI
Standard
No.

GRI 406:
Non-discrimination

406-1

Incidents of discrimination and corrective
actions taken-

Not applicable

GRI 407: Freedomof Association
and Collective
Bargaining

407-1

Operations and suppliers in which the rightto freedom of association and collective
bargaining may be at risk-

No “Operations and suppliers in which theright to freedom of association and collective
bargaining may be at risk”, according to the
SAQ result containing these questions.

408-1

Operations and suppliers at significant risk
for incidents of child labor-

No “Operations and suppliers at significant
risk for incidents of child labor”, according to
the SAQ result containing these questions.

409-1

Operations and suppliers at significant risk
for incidents of forced or compulsory labor-

No “Operations and suppliers at significant
risk for incidents of forced or compulsory
labor”, according to the SAQ result containing
these questions.

410-1

Security personnel trained in human rights
policies or proceduresP31-36-

Not applicable
N/A (Information unavailable)

GRI 408: ChildLabor
GRI 409: Forced orCompulsory Labor

Disclosure

Page Number / URL

GRIStandard
No.

Disclosure

401-1

New employee hires and employee turnoverP31-36

Data table

GRI 410: Security

401-2

Benefits provided to full-time employees thatare not provided to temporary or part-time
employees

P31-36

Data table

GRI 411: Rights ofIndigenous Peoples

411-1

Incidents of violations involving rights ofindigenous peoples

401-3

Parental leave

P31-36

Data table

GRI 412: Human
Rights Assessment

412-1

Operations that have been subject to humanrights reviews or impact assessments

-

402-1

Minimum notice periods regarding
operational changes

412-2

Employee training on human rights policies
or proceduresP31-36412-3

Significant investment agreements andcontracts that include human rights clausesor that underwent human rights screening

-

413-1

Operations with local community
engagement, impact assessments, anddevelopment programs

P23-24413-2

Operations with significant actual andpotential negative impacts on local
communities

-

414-1

New suppliers that were screened usingsocial criteria

P31-36414-2

Negative social impacts in the supply chain
and actions taken-

No “Negative social impacts in the supply
chain and actions taken”, according to the
SAQ result containing these questions.

GRI 415: Public
Policy415-1

Political contributions-

Not applicable

GRI 416: Customer
Health and Safety

416-1

Assessment of the health and safety impacts
of product and service categories-

N/A (Information unavailable)

416-2

Incidents of non-compliance concerning thehealth and safety impacts of products andservices-N/A (Information unavailable)

417-1

Requirements for product and service
information and labeling-N/A (Information unavailable)

417-2

Incidents of non-compliance concerning
product and service information and labeling-N/A (Information unavailable)

417-3

Incidents of non-compliance concerningmarketing communications-

Not applicable

418-1

Substantiated complaints concerning
breaches of customer privacy and losses ofcustomer data

P31-36419-1

Non-compliance with laws and regulations inthe social and economic area-

Page Number / URL-

The minimum notices are given according to
the law of the countries / regions.

403-1

Occupational health and safety management
system

P21-22

Health and Safety

403-2

Hazard identification, risk assessment, andincident investigation

P21-22

Health and Safety403-3

Occupational health services

P21-22

Health and Safety

403-4

Worker participation, consultation, andcommunication on occupational health andsafetyP21-22

Health and Safety

403-5

Worker training on occupational health andsafetyP21-22

Health and Safety

403-6

Promotion of worker healthP21-22

Health and Safety

403-7

Prevention and mitigation of occupational
health and safety impacts directly linked bybusiness relationships

P21-22

Health and Safety

403-8

Workers covered by an occupational healthand safety management system

P21-22

Health and Safety

403-9

Work-related injuries

P21-22
P31-36

Health and Safety
Data table

403-10Work-related ill healthP21-22
P31-36

Health and Safety
Data table

404-1

Average hours of training per year per
employee

P31-36

Data table

404-2

Programs for upgrading employee skills andtransition assistance programs

P20-21

Human Resource Development

404-3

Percentage of employees receiving regularperformance and career development
reviews

P31-36

Data table

405-1

Diversity of governance bodies andemployees

P31-36

Data table

405-2

Ratio of basic salary and remuneration of
women to men

P31-36

Data table

Top Message

Corporate Profiles/ Financial Information/
Corporate History

GRI 413: Local
Communities

GRI 414: SupplierSocial Assessment

GRI 417: Marketingand Labeling

GRI 418: Customer
PrivacyGRI 419:
Socioeconomic
ComplianceFoster Group ESG Management

Environment

SocialGovernance

Data table

Data table
N/A (Information unavailable)

Social Contribution

Not applicable
Data table

Data table

Not applicable

External Recognition

Data
Data
Table
Table

Sustainability Report 2021
(English version)

40

Provision of Information Regarding Sustainability
Our View on Disclosure
Information on the Foster Group’s sustainability is provided with a view to increasing the transparency of the Foster
Group and conveying the activities for Foster Group’s sustainability and their results to our stakeholders. This
information is provided in accordance with the GRI (Global Reporting Initiative) and other international reporting
standards and guidelines. We disclose the information on the Foster Group’s activities and achievements thatmeet the needs of society such as the ten principles of the United Nations Global Compact and RBA (Responsible
Business Alliance), together with the system for appropriate disclosure of the decision-making processes and thesoundness of PDCA and its operation. The information is disclosed via our sustainability report and corporatewebsite for communications.

Contents Reported in Sustainability Report 2021
∙ About this report
The Sustainability Report 2021 was prepared to report the Foster Group’s environmental, social, andgovernance (ESG) activities during the fiscal year ended March 31, 2021 (fiscal 2020) for our stakeholders
in a way that is easy to understand. With regard to our ESG activities, your valued opinion would be greatly
appreciated to help us fulfill our corporate social responsibilities in the years to come. We hope this report will
help you better understand the CSR activities of the Foster Group.
∙ Reporting scope
Unless specifically indicated, the reporting scope includes the activities of the Foster Group, which consists ofFoster Electric Company, Limited, and its consolidated subsidiaries in Japan and overseas.
∙ The reporting period
The reporting period of the Report 2021 is from April 1, 2020, to March 31, 2021 (fiscal 2020). The Report
also includes statements concerning activities outside the reporting period, including those in fiscal 2021.
∙ Referenced standards and guidelines
This report has been prepared in accordance with the GRI Standards: Comprehensive option. The
Environmental Reporting Guidelines 2012 by the Ministry of the Environment were also referred to when
preparing the Report 2021.
∙ Month of issue: July 2021
∙ Reporting to the United Nations Global Compact
As a company that has signed the United Nations
Global Compact, we have announced this report as
the “Communication on Progress (COP)” for the four
fields and ten principles to our stakeholders.
∙ Provision of the sustainability information on our
corporate website
https://www.foster-electric.com/csr/index.html∙ Contact:
Foster Electric Company, Limited

Corporate
Philosophy

Top Message

Phone: +81-(0)42-546-2311 Fax: +81-(0)42-546-2317

Corporate Profiles/ Financial Information/
Corporate History

Foster Group ESG Management

Environment

SocialGovernance

External Recognition

Data Table

Sustainability Report 2021
(English version)

41

Foster Electric Company, Limited
1-1-109 Tsutsujigaoka, Akishima City, Tokyo, 196-8550, Japan
Phone: +81-(0)42-546-2311 Fax: +81-(0)42-546-2317
URL https://www.foster-electric.com/
The illustration on the cover of this report represents Foster Electric operating
globally as a strategic partner that provides solutions with technologies onsound and vibration in its key automotive business. The lower hemisphere is
our speaker while the upper hemisphere is themed on exciting workplace,decarbonized society, harmony with nature, and our other goals, with thebase point being “Be Happy 80%”, the ideal environment stated in the ESG
Management Statement that we established in March 2021. The illustration
also features a selection of icons for technologies related to our acoustic andvibration products, including speakers, headphones, and vibration actuators.
July 2021 Edited in Japan

Sustainability Report 2021 (English version)