Sustainability Report 2020 ｢English version｣

Corporate
Philosophy

Corporate Profiles/
Financial Information/
Corporate History

Top Message

Foster Group CSRManagement

Environment

SocialCONTENTS

P.1

Corporate
Philosophy

P.2

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

To make contributions

Sincerity

Philosophy

for future society
through acoustics

Top Message

P.3

Corporate Profiles/
Financial Information/
Corporate History“Sincerity” has been the
Foster Group’s corporate
creed since its establishment.
By the term “sincerity,” wemean the act of treating all

P.5

Foster Group CSRManagement

P.10

Environment

P.14

SocialFosterRhythmconcerned parties of theGovernance

P.31

External Recognition

P.32

Data Table“Foster Rhythm” is our guide to ensure we all move in the same direction to achieve our goals and dreams so wealways 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 that 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.

Company with a sincere
approach. The concept of～ Our Principles and Values ～CSR, which shares the same
basic

philosophy

as

the

corporate creed of “sincerity,”I

has always governed theCompany’s corporate management and business operations since its foundation.

THE LEADING

Sound to Life*SOLUTION COMPANY

II

III

ALWAYS
IMPROVING

EVER MORE GLOBAL
AND INCLUSIVE

Strive to be number one in the global acoustic

Create a more efficient, effective, profitable and better

Embrace diversity and pursue more global

fields. Innovate to support ever wider market

place to work.

synergy at all management levels.

coming age, we believe it isneeds.

Always seek new market categories and opportunities.

8. Open Mind: Be open–minded and inclusive

important for each member

1. Trusted: Earn the trust of users and partners

4. Fast and Flexible: Be fast moving and flexible

9. Responsible: Fulfill our duty to protect peopleof the Foster Group to act

2. Expert: Take pride in our expertise in acoustic

5. Reliable Quality: Deliver totally reliable quality via ever

To continue to grow in the

P.26

Data
Table

MissionVisionCorporate Creed

Corporate

External
Recognition

Governancetechnology

in accordance with the CSR

3. Inspiring: Add unique value, motivate

philosophy, or the corporate

partners and excite customers

creed of “sincerity,” which wehave adhered to since our establishment.

more efficient systems

and the environment
10. Team: Respect others as part of a team with

6. Proactive: Embrace learning and proactive leadershipshared goals

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

Sound to Life*

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”.

Sustainability Report 2020「English version」

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Corporate
Philosophy

Top Message

Corporate Profiles/
Financial Information/
Corporate History

Foster Group CSRManagement

Environment

SocialGovernance

External
Recognition

Data
Table

Corporate Social Responsibility andPromoting ESG Management
The novel coronavirus (COVID 19) has changed the faceof today’s world. People are forced to restrict movements,
business activities are impaired, and logistic 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 respond to environmental issues.
Foster Group celebrated 70th anniversary in 2019, andhave wished to be a corporate citizen that is relied on
and loved by our various stakeholders. We seek todo this by maintaining the consistent spirit of 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 the good ofsociety. Securing these “three goods,” we also aim to bea centennial company that has a shining presence in the
coming new society.
Society is currently experiencing major changes.With
the industrial revolution being brought about by the
IoT (Internet of Things), advent of the automateddriving era, development and expanded use of AI andmany other advances, we feel that the innovations that
fundamentally change our way of life are progressing
at a pace that far exceeds anything that we anticipated.
New players are also appearing one after another to
respond to those changes and competition is becoming
increasingly intense.

Hiromi Yoshizawa

Atsushi Narikawa

CEO

COO

To realize our corporate vision “to make contributions
for future society through acoustics” and to respond to
the drastic change of technologies, we must continue
to uphold the basic philosophy of “Sincerity” that Foster
has adhered to since its founding, while making majorchanges as we move forward. We have shifted our axis
to automobile related business. New businesses are also
starting to grow. The key players who have a central role inachieving this are people, the tens of thousands of Foster
Group employees around the world.
We will continue to actively promote human resource
employment worldwide and diversity to cultivate truly
global and sophisticated human resources. In addition,
by further promoting “work-style reform,” we would liketo offer an environment where more employees canwork flexibly and freely to achieve the goal of “Be Happy
80%*.”*“Be Happy 80%”: The ideal environment that we would
like to achieve company-wide, which was presented bya team of young employees during internal leadershiptraining.It refers to a working environment and corporatebody where 80% of our employees can feel 80%
happiness. I agree with such idea.
Recognized for such efforts, following the “NewDiversity Management Selection 100” by the Ministry of
Economy, Trade and Industry, we were awarded ”Top100 Telework Pioneers” (Ministry of Internal Affairs andCommunications) and “Certification of Excellent Company
in Health: Gold Accreditation” (Tokyo Promotion Councilfor Healthy Company Declaration). We will continue
those efforts in the future. Foster Group has signed the“United Nations Global Compact” since 2017. We willbase ESG management in the center of our company
policy to foster a healthy corporate climate, drive further
work style reform, ensure thorough quality control andrisk management, and continue to work on solving social
issues by setting mid- and long- term goals.
We will also cherish the culture to take good care of ouremployees, further penetrate our corporate creed toreinforce the corporate foundation.
We will continuously strive to offer satisfaction to ourvarious stakeholders, and to become an enterprise thatis loved by society.
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Corporate
Philosophy

Corporate Profiles/
Financial Information/
Corporate History

Top Message

Foster Group CSRManagement

Environment

SocialAbout Foster
Foster Electric was founded as a loudspeaker manufacturer in 1949.
Since that time, we have established ourselves as a specialist in audio technologies, and have provided the audio industry with many products and technologies.
Among them, acoustic transducers have become our mainstay products. We have created a wide array of unique technologies and accumulated broad
expertise, including in automotive speakers and other automotive audio products, audio equipment (AV speakers) for home entertainment, high-end Hi-Fi
speaker systems, headphones and headsets, compact speakers for information equipment, buzzers, and vibration actuators that apply audio technologies. With
these technologies and accumulated expertise as our backbone, we provide quality, optimal acoustic experiences that fulfill the expectations of our customers.
Products from Foster Electric have been used in many products around the world. They contribute to society by providing audio and vibration solutions throughthe products of our clients’ brands.
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

External
Recognition

Governance

Data
Table

Overview by Segment(Consolidated)
Speaker Segment
Net
sales

¥

63,955 million

59.5％

OthersMobile Audio Segment

EUROPE

２

bases

Net
sales

JAPAN

8

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

37,059 million

34.5％

bases

AMERICAS

manufacturing.

８

bases

ASIA

(excluding Japan)

20

Financial Highlights

107,298(down

23.5% y-o-y)Operating income
million

Net
sales

¥

6,454 million

6.0％

Consolidated Performance for the Fiscal Year ended March 31, 2020

Net sales¥

Other Segment

bases

¥

2,064
(down

million47.6% y-o-y)Ordinary income

¥

2,599
(down

million39.8% y-o-y)

Net income attributable toowners of the parent

¥

1,565

million2,026 million in previous FY)

Note: The ﬁgure above includes intersegment sales.

(Net loss of ¥Sustainability Report 2020「English version」

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Corporate
Philosophy

Corporate Profiles/
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Corporate History

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Company Information
Directors and Corporate Auditors (As of June 24, 2020)

Company Name: Foster Electric Company, Limited

CEO:

Hiromi Yoshizawa

Senior Executive Oﬃcer: Terushige Nagasawa

COO:

Atsushi Narikawa

Senior Executive Oﬃcer: Takuro Yamaguchi

June 20, 1949

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

Headquarters:

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

Number of
Employees:

20,677(Number includes our outsourcee in
Panyu, China)

URL

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

Environment

SocialExternal
Recognition

Governance

Data
Table

Stock Information

Company Proﬁle (As of March 31, 2020)
Founded

Foster Group CSRManagement

Senior Managing Director: Lu San Tie

Senior Executive Oﬃcer: Masatoshi Kohama

Managing Director:

Kazuhiro Kishi

Senior Executive Oﬃcer: Tatsuhito Tanaka

Director:

Hidetoshi Shirakawa Senior Executive Oﬃcer: Ryoji Otowa

Director*¹:

Minoru Matsumoto

Executive Oﬃcer:

Yasuhide Takahara

Director*¹:

Chieko Matsuda

Executive Oﬃcer:

Naoki Kanai

Director*¹:

Yasuhiro Goto

Executive Oﬃcer:

Yuji HaradaStanding Corporate Auditor:Tsutomu Inokuma

Executive Oﬃcer:

Hiroki Miura

Corporate Auditor*²: Takuma Ino

Executive Oﬃcer:

Yuji Sakuta

Corporate Auditor*²: Takashi Suzuki

Executive Oﬃcer:

Roy Ching-Sheng Chen

Corporate Auditor*²: Satoko Kimoto

Executive Oﬃcer:

Oh In-Yong

Status of Shares (As of March 31, 2020)
Total number ofshares authorized
to be issued by theCompany:

Distribution of Shareholders by Shareholder Type
Foreign entities,
etc.

41.1%

80,000,000 shares
Total number ofshares issued:

26,000,000 shares
Number ofshareholders:

Financial
institutions

34.9 %

Individuals
and others

14.6 %

Securities companies 3.8 %Domestic corporations, etc. 5.6 %* Excluding treasury stock

5,660*1: Minoru Matsumoto, Chieko Matsuda, and Yasuhiro Goto are Independent Directors.
*2: Takuma Ino, Takashi Suzuki, and Satoko Kimoto are Independent Corporate Auditors.

Corporate History

1949

Began supplying car
speakers

1959

1988 - 1989

Began production of headphones,
microphones, and speakers in
Panyu, China

Ratio of
Number of
Shares Held Shares Held

Shareholder’s Name

(thousands)(%)

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

1,799

7.8

Japan Trustee Services Bank, Ltd. (trust account)

1,284

5.6

Mizuho Bank, Ltd.

1,016

4.4

GOVERMENT OF NORWAY

973

4.2

MUFG Bank, Ltd.

945

4.1

The Bank of New York Mellon 140044

570

2.5

The Bank of New York Mellon 140042

506

2.2

Japan Trustee Services Bank, Ltd. (trust account 9)

499

2.1

Showa Aircraft Industry Co., Ltd.

446

1.9

DFA INTL SMALL CAP VALUE PORTFOLIO

443

1.9

Treasury stock (3,195,624 shares) is excluded for the calculation of
the “Ratio of Shares Held.”

2006

1982

S. Nishimura and H. Shinohara
established Shinano Onkyo Institute

Major Shareholders

Began production in Vietnam
to meet rising demand forheadphones and headsets

2012

Headquarters functions relocatedto the current location,
Tsutsujigaoka, Akishima City
(headquarters relocated in 2013)2019

70th anniversary

Renamed Foster Electric Co., Ltd.

1973

1955

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

Fostex Corp. established

1999

1986

Merged with Tonegen Co., Ltd.

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

2009・Converted Korea-based ESTecCORPORATION into a
consolidated subsidiary・Began online sales of custommade headphones “KOTORI”

2014 - 2017

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

2020

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

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Philosophy

Top Message

Corporate Profiles/
Financial Information/
Corporate History

Foster Group CSR Management
Since its founding in 1949, the Foster Group has
aimed to become indispensable to society, and has
continued to grow and develop under its corporate
philosophy of “Sincerity.”
Celebrating 70th anniversary this year, and further“aiming to be a centennial company,” the Groupwill continue to adhere to management basedon “Sincerity,” that is, “always convey the truth
and offer human- and environmentally friendly
products and services to all stakeholders withcordiality.”
In 2020, the spread of COVID-19 has brought
about negative impacts on the world. The actions to social
responsibilities pressured on corporations are now being
tested.

Foster Group CSRManagement

Environment

SocialGovernance

External
Recognition

Data
Table

Foster Group CSR Charter
The Foster Group bases its activities on the corporate creed of “Sincerity”, the vision “To
make contributions for future society through acoustics”, and the 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 future society counts on.”
CSR or CSR Management that suit the Foster Group, who extends business activities globally, is“to concentrate on its core business based on the corporate creed for the purpose of sustainable
development of a company as a global corporation, and to fulfill its social responsibility byenhancing the corporate value while raising the stakeholder satisfaction not only in financial
aspect, but also in the harmony of environment and society aspects.
The CSR management means that the corporation fulfills its social responsibilities through suchactivities.”
In achieving this objective from global perspectives, the Foster Group and all of directors andemployees will initiate CSR activities based on followings.

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.

*1 ■ Foster Group CSR Charter:
https://www.foster-electric.com/csr/foster_group/*2 ■ Foster Group Corporate Action Guideline:
https://www.foster-electric.com/csr/governance/pdf/corporate_action_guideline.pdf*3 ■ Foster Group Code of Conduct for Staff:
https://www.foster-electric.com/csr/governance/pdf/coc_for_staffs.pdf

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 canwork 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 CSR Charter below. We
will also continue to enhance corporate value by appropriately addressing the expectations andneeds of our stakeholders.

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Corporate Profiles/
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Corporate History

Foster Group CSRManagement

Environment

SocialGovernanceFoster Group CSR Promotion

Global CSR Communication Meetings

The Foster Group issued the first version of its CSR Charter in 2006, and updated it to pursue
global versatility and universality in 2010, by incorporating the EICC* Code of Conduct, the CSR
standards established by the 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 CSR management. In addition to these efforts, we also implement our CSR activities
in compliance with the United Nations Global Compact and the ISO 26000 standards.
* Electronic Industry Citizenship Coalition (renamed Responsible Business Alliance in 2017)

Materiality (Priority Issues)

External
Recognition

Data
Table

We held “Global CSR Communication Meetings” at Japan headquarters and overseas groupcompanies of 6 major regions during Oct.-Dec., 2019, with attendance of CSR officer (Senior
Managing Director), CSR representatives and staffs from each site via TV conference system. We
aim to strengthen our system, by directly exchanging information and opinions on our global
CSR activities including supply chain management.

When developing materiality items, we listed them by referencing the international guidelines
and standards, etc., added the priority issues extracted from the Foster Group Business Policy,
and reflected the expectations of stakeholders, including customers and investigatory bodies.
As a result, we have set the Materiality (priority issues) that should be addressed first as follows.

As shown in the following “CSR System,” The Foster Group has established the CSR Committee(*)
with representatives of related sections as core members at its headquarters.
CSR Committee Meetings are held monthly with attendance of CSR officers from theheadquarters as well as staff at overseas bases via video conferencing to ensure the monitoring Sustainable development
and collaborative promotion of CSR activities on a group-wide basis, including overseas businessnew value /locations, each of which has an appointed person responsible for the promotion ImprovementofProvision
CSRofofactivities.
Engagement
corporate value* Renamed “Sustainability Committee” in June, 2020.

Stakeholders

Shareholders
Investors

Sustainable development domains

General Meeting of Shareholders
CSR reflecting
our corporate value

Board of Statutory Auditors

Board of Directors

Directors/Oﬃcers
Employees

Ideal company with a centennial history
Back casting

The Ten Principles of the UN Global
Compact

Respond to social demands

Suppliers

EICC Code of Conduct

Accounting Auditor

Communities
Future generations

Social value domains

PresidentInternal Audit Department

Basic CSR

Risk management
Compliance with laws
and regulations

CSR Oﬃcer
CSR Promotion Department

Triple bottom line

CSR Committee

CrucialCustomers
End users

Significance for Stakeholders

Foster Group CSR System

Environment
Anti-corruption
Corporate governance
Information disclosure

Human rights
Industrial safety and health
Quality and product safety
Information security, etc.

Government
agencies

Environment

Quality(Product Safety
and Reliability)

Environmentally
Friendly Products

Sustainable
Supply Chain

Diversity

Decent Work

Penetration of
Corporate Philosophy

SigniﬁcantSociety

CrucialCompliance Committee

Risk and Crisis Management Committee

Sustainability
GHG
Reduction

Governance
Enhancement

Environmentally
Friendly Products

Sustainable
Supply Chain

Environment Committee, etc.

Quality(Product Safety
and Reliability)

Diversity

Significance for Foster’s BusinessCrucialDecent Work

Penetration of
Corporate Philosophy

CSR Representative

Corporate and Business Divisions
at the headquarters

Governance
Enhancement

Industry

Business domains
EconomyRelevant
Committees

GHG
Reduction

SigniﬁcantGroup Companies
Small

SigniﬁcantCrucialThe signiﬁcance of materiality presented in thisassessment is signiﬁcant or crucial for the stakeholders and the Foster Group.

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Top Message

Foster Group CSRManagement

Environment

SocialGovernance

External
Recognition

Data
Table

Our Approach to Materiality (Priority Issues)

Environment (E)ESG

Materiality
GHG (greenhouse gas)
Reduction

Environmentally
Friendly Products

Target• Reduce CO2 emissions(Scope 1 and 2)• Development of environmentally responsible products

Achievements until 2019

Refer toReduce by an annual average of 1% CO₂
emissions per sales unit (Yr 2020 Target: 7.73% ormore reduction from Yr 2012)

In fiscal 2019, CO2 emissions of the Foster Group were reduced by 18% year-on-year
due to energy-saving activities and the reduced production volume. However, theemissions per sales unit increased by 7.2%.

Page 11

Reduce the weight of speakers

Weight reduction to 140 g was achieved for 6.5 inch (17cm) car speakers;
approximately 50% reduction from conventional car speakers.

Reduce the use of VOCs

The ratio of new mobile audio products using toluene-free adhesives at least
partially was 100%.

Weight saving, Reduction of VOCs and solder etc.

The ratio of environmentally responsible car speakers (per sales) increased from 7%
to 10%.

Continuous promotion of corporate philosophy

Organize workshops(by organizational rank)• Held workshops• Implemented interviews with management• Issued a collection of Foster Rhythm practices• We plan to conduct an employee satisfaction survey in the future.

Page 21

Diversity• Female manager ratio (headquarters)• Foreign employee ratio (headquarters)• Employment rate of persons with disabilities (headquarters)• Rate of periodic health examinations taken (headquarters)• Displaced worker due to nursing care (headquarters)

30% by 2021
30% by 2020
More than 2.2% of the legal employment rate
Maintain 100%0% by 2021

12.3% (as of Apr, 2020)
11.9% (as of Apr, 2020)
2.2% (as of Mar, 2020)100% (2019 result)
0% (2019 result)Pages
18 - 20• Rate of paid holidays taken (headquarters)• Total working hours (headquarters)

Fiscal 2019 Target: 80%
Monthly average of 156 hours and the return ofprofits obtained by overtime work to employees• Rate of specific health guidance taken (headquarters)

80%

Fiscal 2019 result: 82.3%
Monthly average of 161.5 hours
Implemented the return of profits obtained by overtime work to employees (Fiscal
2019 result)
55.4% (Fiscal 2018 result: The result from two years ago because the result of healthexaminations is obtained in the following year.)Pages
19 - 20

Social (S)• SAQ response rate from suppliers

Existing suppliers: 91% or higher

Existing suppliers: 91%

New suppliers: 100%

We will continue to remind suppliers from which we have not collected responses yet,perform analysis and risk assessment of collected data, and take corrective actions.

Sustainable Supply
Chain

Page 15• Response rate for the conflict mineral survey collected fromsuppliers

Quality (Product Safety
and Reliability)

Governance (G)Page 12

Penetration of
Corporate Philosophy

Decent Work

Governance
Enhancement

Corresponding
SDGs

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

Existing suppliers: 99% or higher

Existing suppliers: 99%

New suppliers: 100%

In addition to maintaining and managing the response rate, we plan to promote
procurement from certified refineries.

Maintain 0 failures

0 failure

Reinforce and improve compliance structure• Implemented a compliance test (response rate: 100%) and a compliance survey(response rate: 66.8%).
• Held compliance training for executives and management• Held “Compliance Hotline” and “Harassment Helpline” briefing sessions for employees topublicize the internal whistleblowing system.
• Monitored CSR activity statuses in major business locations at the monthly CSR
committee meetings in which executives participate.

Enhance risk and crisis management structure• Implemented the Foster Group’s risk identification and assessment, and determined
items to monitor.
• Provided these risk assessment results as a reference to develop the management policy.
• Monitored BCP reviews, desktop trainings, supplier BCP building, and information
security management system etc. as key risk items.
• Implemented COVID-19 at risk and crisis management meeting from January 30,
2020. Hold risk and crisis management committee

Reinforcement of compliance, risk and crisis management toenhance corporate governance

Page 16Pages
27 - 28

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Sustainable Development Goals (SDGs)
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.
What Are Sustainable Development Goals (SDGs)?
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: the 2030 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.

Foster Group CSRManagement

Environment

SocialGovernance

External
Recognition

Data
Table

United Nations Global Compact(UNGC)
About United Nations

The Foster Group signed and joined

Global Compact

the “United Nations Global Compact(UNGC),” the world’s largest corporate
sustainability initiative promoted by theUnited Nations, on January 19th, 2017.
As a company that operates globally,
we support the 10 principles of the

Source: United Nations Information Centre website

UNGC of “Human Rights,” “Labour,”“Environment” and “Anti-Corruption”

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

and conduct activities for compliance,
decent work, care for the environment,
and CSR procurement, etc.

Activities as a member

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

of the Global Compact“Environmental Management Subcommittee”, “WEPs Subcommittee”,

Network Japan (GCNJ)“Supply Chain Subcommittee”,
Subcommittee”,“ESG“DRR (Disaster Risk Reduction)

Subcommittee”,“SDGs

Subcommittee”,“Reporting Study Subcommittee”, and “Subcommittee to Cultivate
Awareness of the Global Compact” of the GCNJ, which are composedof the member companies of the UNGC (as of July 2020). The
subcommittees not only share the CSR-related latest trends andstudy cases of each company through lecture meetings by influential
individuals but also are working to produce various kinds of outputs
that support CSR activities of various companies based on themember companies’ experiences in a wide range of industries. In
addition, the knowledge obtained through the subcommittees isreflected in our CSR activities.

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Foster Group CSRManagement

Environment

SocialExternal
Recognition

Governance

Data
Table

Sustainable Development Goals (SDGs): Our Actions
We are promoting the following 13 items among the 17 goals through our business activities and will continue to take action to help achieve a sustainable society.

SDGs

Activities

Business

SocialIn-house
Contribution

Refer to

SDGs

Activities

Business

SocialIn-house
Contribution

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

●

Pages 24 - 25

Implementation of intercultural communication
trainings

Participation in blood drives●

Pages 24 - 25

Management of chemical substances●

Page 11

Page 20

Promotion of recycling●

Page 11

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

Page 21

Acceptance of student interns●

Page 19

Environmentally friendly products●

Page 12

Donation of school expenses●

Page 24

CO2 reduction●

Page 11

Promotion of clean energy use●

Page 11

Environmentally friendly products●

Page 12

Education on promoting diversity●

Pages 18 - 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 26 - 28

Work style reform project●

Pages 19 - 20

CSR assessments and audits●

Page 14Returning overtime money●

Page 19

Responsible procurement●

Pages 14 - 15

Enrichment of holiday/leave programs●

Page 20

Personnel system with multiple courses●

Page 21

Technical master system●

Page 21

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Environment
Environmental Philosophy and Policy

Foster Group CSRManagement

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Data
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Mid-Term Environmental Goals 2025
Right around the time for our review period, the Group set its mid-term environmental goals for 2025.
Goals

2020 - 2025

Environmental Philosophy

Decarbonized CO₂ Emissions
Scope 1, 2: Reduce absolute CO₂ emissions 5% from a 2018 baseSociety
Reduction (Scope1, 2, 3) year

In pursuit of eco-friendly technologies and manufacturing, the Foster Group, respecting nature,contributes to the realization of an affluent society and an environment where people aroundthe world can fully demonstrate their humanity.

Resource
circulation

Scope 3: Reduce absolute CO₂ emissions 3% from a 2018 baseyear
Product resource saving - Develop environmentally responsible technology
Production process
improvement

Environmental Policy- Preface Foster Group considers environmental harmony as one of essential tasks in business activities
and each employee acts by prioritizing the environmental friendliness.
1. We conserve the global environment by promoting resource and energy saving in productdevelopment and design.
2. We prevent contamination and reduce CO₂ emissions in all the phases of business activities
including manufacturing and disposal.
3. We strive for the continual improvement of environmental performance in compliance withenvironmental laws and regulations and other requirements.
4. We raise the awareness of environmental protection and biodiversity and thereby develop
human resources who contribute to society.
5. We maintain and improve environmental management system and promote external
communication.
【Issued following the approval by senior management in July, 1993. Revised in October, 2017.】

Environment Management System and ISO14001 Certification
We have obtained ISO14001 certification at the headquarters and all overseas manufacturing
sites and embody the Foster Group’s environment philosophies and mid-term environmental
goals. At the headquarters, we monitor the activities conducted at each site and check theirresults.
The headquarters also defined 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.
In addition, we present the ISO14001 certification at the request of stakeholders.

- Waste: Reduce total hazardous waste volume by 5% from 2018
- Reduce water consumption (promote and improve water
recycling)

Symbiosis
with natureManagement ofchemical substances- Build global management system based on the company
standards and regulations

Biodiversity protection- Develop biodiversity policies and mid-term action plans

Partnership with

- Implement cooperative systems and activities with our
suppliers

stakeholders

We held cross-functional review meetings and developed mid-term environmental goals by 4 stages.
At review meetings, we identified risks and opportunities based on business activities andenvironmental aspects of our products.
Further, we went on to determine material issues in line with the future business directions andsignificance level as well as stakeholders’ interests, and set mid-term environmental goals for the
Foster Group.
Our mid-term environmental goals were developed from three perspectives; “Decarbonizedsociety”, “Resource circulation”, and “Symbiosis with nature”.
We will engage in achieving even higher goals from 2020.

Goal Setting Process and the Review Meetings
Analyze environmental
aspects & impacts
Identify risks and opportunities
Identify material issues
Review target and measures
Set target and measures

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Environmental Activities
Long-Term CO₂ Reduction Goals for 2030
Based on the Paris Agreement, the Foster Group has set new
long-term CO₂ reduction goals for 2030.
<GHG Reduction Goals>“GHG Scope 1, 2: Reduce absolute CO₂ emissions 30% by 2030
from a 2018 base-year”“GHG Scope 3: Reduce absolute CO₂ emissions 15% by 2030
from a 2018 base-year”
We will address further reduction through activities such asenergy-saving activities and adoption of renewable energy.

CO₂ Reduction (Scope 1, 2)
The Foster Group’s absolute CO₂ emissions were reduced
by 18% year-on-year due to energy saving activities andreduction in production volume, but emissions intensity perunit of revenue resulted in 7.2% increase against 1% year-onyear reduction target. For Scope 3 emissions, the data can befound in the Data Table at the end of this report.
CO2 Emissions(t-CO�)(t-CO�/million yen)
100

120,000
100,000
80,00089,43093,947 90,998

62.2

60,00088,823 90,876 90,209

56.6

72,867 59,747

56.4
48.1

40,000

46.5

80

48.8

51.9

55.7

40
20

20,000
0

60

2012

2013

2014

Absolute CO₂ emissions

2015

2016

2017

2018

2019

Emission intensity per unit of revenue

0

Corporate Profiles/
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Corporate History

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Table

Water Risk Management

Environmental Consideration at Headquarters

Each site manages water withdrawal and discharge by setting
their standards in compliance with local laws and regulations.
The headquarters uses “AQUEDUCT”, a water risk assessment
tool of the World Resources Institute (WRI), to understandthe local water risks at each site. We will address water risks
by including “water consumption reduction” in the mid-term
environmental plan from 2020.

Our headquarters employs environmental load reduction
technologies such as “Lighting control by daytime sunlight”, “Airconditioning by outside air”, “Ice thermal storage air conditioning
system”, “Double-skin façade" to limit on maximum power
consumption. In addition, we control electricity consumption
through the Cool and Warm Biz campaigns, and the initiative toturn off all the lights in the building. The headquarters strongly
promotes active participation in climate control measures by
procuring clean energy prior to the other sites in the Group.
We have further discontinued the disposable coffee cups (plastic
or paper) and introduced reusable cups. We also address issues
such as marine micro plastic and resource saving.

External Communications
As a company that works on SBT*, we began participating in
the network for the "Program for Enhancing Corporate Value
through Decarbonized Management", hosted by Ministryof the Environment and exchange information with othercompanies.
* SBT : Science Based Targets<External Link>“Decarbonization Management Promotion Network” by
Ministry of the Environment (The following site is in Japanese.)https://www.env.go.jp/earth/ondanka/supply_chain/gvc/network/index.html

Chemical Substance Management
The Group has set forth its autonomous management
standard, in which applicable laws, regulations and customers’
requests are reflected, for handling environmentally hazardous
substances contained in its products to minimize their impact
on the environment. We eliminate any controlled substancesfrom our products by managing applicable parts and/or
materials purchased. Based on the aforementioned scheme,
we have established an optimum management system for theefficient search and collection of information about chemical
substances that are contained in parts and materials andprecise 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.

Zero Emissions

Reusable cups

At headquarters we are engaged in the recycling of waste(waste that contains recyclable elements) through the sortingand separation of regular waste, plastics and industrial waste,
together with comprehensive awareness raising activities.
Assembled products and parts are being recycled into raw
materials through professional recycling (23 tons / year;
43% increase from previous year), as part of our continuing
activities aiming to achieve zero waste emissions from ourbusiness activities.

Recycled materials being carried out

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Environmentally Friendly Products

Foster Group CSRManagement

Environment

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Data
Table

Headphones and Headsets

Speakers
We developed lightweight speakers, optimum for next-generation environmentally friendly
vehicles such as electric vehicles (EVs). Through optimization and lightweight design of resinand metal components by CAE analysis, we reduced the weight of 6.5” (17 cm) conventional
speakers by 50% or more; from 290 g to 140 g and commercialized them. Its advanced design
helps to reduce overall CO₂ emissions from vehicles.
We have developed speakers employing adhesives that do not contain harmful solvents inorder to reduce the volume of VOC remaining inside the passenger cabin of vehicles.
As a part of our environmental activities, we have developed and commercialized speakers
with reduced solder applications by developing novel bonding structure and manufacturingmethod.
【Ratio of Environmentally Friendly Speakers (Per Sales)】2017: 4%
2018: 7%
2019: 10%2025 target: 20%

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, we address the most up-to-date information regarding countryspecific 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 byintroducing new equipment, and developing products made of natural materials.
For microspeakers used for headphones or headsets, we are working towards environmentallyfriendly manufacturing by introducing toluene-free adhesives for new microspeaker products inorder to reduce VOC (replacing the parts containing solvent adhesives).
【Development Target for Toluene-free Products】
Target for 2020: The ratio of products using toluene-free adhesives at least partially to be 100%.
Target for 2025: The ratio of products using toluene-free adhesives to be 100% by 2025.
【2019 Result】
The ratio of new mobile audio products using toluene-free adhesives at least partially was 100%.

Lightweight car speaker

Actuators
We proactively apply environmentally friendly design to haptic vibration actuator devices, which
are a part of new user interfaces for CASE*, VR, AR, and other technologies. In consideration of
VOC emissions, we have adopted adhesives that do not contain harmful solvents. To reduce thelabor necessary to manufacture products, we have realized quick curing using UV radiation andpulse heat soldering. In addition, to reduce solder consumption, we have developed resistancewelding and put it to practical use. We will maintain our status of using adhesives that 100% do
not contain harmful solvents.

【Systems for Achieving Targets】
Increase requirements in the development and design stage of environmentally friendly
products.
- In 2019, we added the requirement, “Use toluene-free adhesives at least partially” to the
product assessment check sheet and followed it.
- In 2020, we will start studying alternative adhesives to achieve the 2025 target of “100%toluene-free products.”

Adhesives
Adhesives* CASE: Connected, Autonomous, Shared, Electric

Toluene-free adhesives

Toluene-free tapes

Example: Application of toluene-free adhesives

Example: Environmentally friendly microspeaker(microspeaker with a 35 mm diameter for headphones)

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Environment Month Activities (Headquarters)

Environment Month Activities (Overseas)

Environment Lecture Presentation

China

We invited external lecturers to give training on corporate effects on biodiversity, social
needs, case studies, and how to approach them. Further, we held workshops to discuss onenvironmental issues to address as a Group.

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

City cleanup activities

VietnamEnvironment lecture presentation

Environment workshop

We performed cleanup activities around each plant, planting activities and emergency response
training for chemical spills.

Akishima City Cleanup Movement (Mini-Clean Activities)
As part of our CSR activities, we carry out monthly mini-clean activities, clearing the footpaths
and sidewalks around our headquarters based on our annual plan. We also actively participate
in the Akishima Cleanup movement, and are working towards the beautification of our local
area, in which all departments including the members of the Environment Committee canparticipate. 161 employees participated (participation rate: 33%) last year; 23% increase year-onyear and the total waste weighed 36 kg.

City cleanup activities

Planting activities

Chemical spill response training

Myanmar
We performed cleanup activities around each plant. We further performed planting activities
and environmental education training to raise environmental awareness.

Mini-clean activities

City cleanup activities

Planting activities

Environmental education

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SocialCSR Management in Supply Chain
Driving CSR activities is not limited within a company orgroup companies alone, but is to be managed by the entire
supply chain including customers/suppliers. The Foster Group
actively response to CSR requests, drive CSR activities, andresponsible 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 6 CSR audits
from 2 corporate customers from Apr, 2019 through Mar,
2020. We further received and responded to 32 CSR selfassessment questionnaires from 21 corporate customers
during this period.
We will continue to drive CSR-based manufacturing andsincerely respond to such requests.

CSR Internal Audit
The Group checks CSR activities status and conduct internal
audit to maintain sound CSR management system. We
conducted 21 CSR internal audits from Apr, 2019 through Mar,
2020 at our overseas sites. The standards and guidelines forthese audits were based on RBA code of conduct, RBA-VAP(Validated Assessment Program), ISO 14001, OHSAS18001,
ISO45001, SA8000, as well as customer standards.

Corporate Profiles/
Financial Information/
Corporate History

Foster Group CSRManagement

Environment

Responsible Procurement
The Group set “Basic Principles of Procurement” on supply
chain including the Group itself and the business partners tobuild fair and sound relationship in the global business.

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 regulationsin the countries and regions where we conduct businessactivities, and will conduct purchasing duties in accordancewith social ethics. We will not accept any gifts orentertainment that violates laws or social ethics.
2. Fairness and impartiality
We will keep our doors open and provide equal
opportunities to all businesses, and will evaluate and selectsuppliers 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 our knowledge in doing business.

SocialGovernance

External
Recognition

Data
Table

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

Management System
We strive to trade with suppliers who not only provide
excellent technologies, quality, and delivery dates, 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 a regularbasis. The internal rules and manual on CSR procurement isprovided to the persons in charge of procurement, and we
provide them with CSR training regularly to raise awarenessand ensure they stay updated on developments. Our suppliers
conduct CSR self-assessments for us, and we include CSR
requirements in the basic transaction agreements that weenter into with them. Further, we conduct CSR audits ofour suppliers and request that they take corrective actions
to improve based on the results of the CSR self-assessmentand of the regular audits on quality (ISO, VDA, and IATF), theenvironment (hazardous substance management and ISO
14001), and CSR (status of CSR activities) and other evaluations
regarding delivery dates, services, and other aspects of therelationships. We take measures to address the problem ofconflict minerals that adhere to the OECD Conflict Minerals
Due Diligence Guide. Through these activities, we aim to build
a sustainable supply chain together with our suppliers.
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Overview of Our Supplier Partners

Requesting Suppliers Conduct CSR Self-Assessments

Responsible Conflict Minerals Procurement

We trade with approximately 500 suppliers, 59% of which are in
China. The machined parts industry accounts for 80% 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 asnecessary. In fiscal 2019, we created corrective action plans for
15 suppliers, who were identified as need corrections in the selfassessments that had been conducted the previous fiscal year, andrequested that they implement these corrective action plans toimprove the points that had been identified. We will continue torequest that suppliers conduct self-assessments and take corrective
actions immediately if any problems are identified, in our efforts tobuild a sound supply chain.

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 to human-rights violation such as child labor, poor
working conditions, environmental destruction, and other issues.
In accordance with the Dodd-Frank Wall Street Reform andConsumer Protection Act in the U.S. established in July 2010, we
promote responsible conflict minerals procurement for the entire
supply chain to fulfil social responsibility in procurement activities.

Trade status(by region)
Others
10%
ASEAN
31%

Electronics 2%Electronics 2%

Others
10%
ASEAN
China
31%
59%

Trade status(by business sector)

China
59%

Raw
materials
18%

Rawmaterials
18%

Processed parts
Processed parts
80%
80%

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
a basic transaction agreement containing CSR requirementswith suppliers before starting trade with them. We also conduct
SAQs for the existing suppliers, check the implementation statusof 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 andlower-tier suppliers comply with the Foster Group Supplier CSR
Code of Conduct. Specific initiatives include requesting that Tier1 suppliers distribute the Code of Conduct to their own suppliers
and require that they comply with it, in addition to asking Tier1 suppliers themselves to understand the Code of Conduct,
share it internally, and conduct self-assessments to ensure theircompliance with it.

Intra-Industry Collaboration (Engagement)
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 that must be managed to ensure they
are not 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 information is shared regarding
the latest trends and to develop intra-industry collaborations thatraise awareness in the supply chain and improve the efficiency ofinvestigations into conflict minerals.

Connecting with Our Business Partners in Environmental Burden Reduction

Our Approach to Due Diligence
We promote conflict minerals procurement 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
the inquiry briefings held by “JEITA Responsible Minerals Trade
Working Group” and use research manuals/guidance commonly
shared with automotive manufacturers and Japan Auto Parts
Industries Association.

Conflict Minerals Investigations
In 2019, 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. We identified 328 smelters for all the minerals, and 81%of them have passed the conformant smelters audits (RMI). From
2018, we have started investigating cobalt and mica according to
the due diligence guidance by OECD. The Group will continue to
conduct detailed investigations for tantalum, tin, tungsten, andgold (3TG) as the refinery certification status changes (addition ordeletion), and work to eliminate any procurement of minerals if it
is clarified that those are related to armed forces.

We have established the “Green Procurement Standard” forchemical substances contained in the procured parts, and connect
with our business partners to reduce environmental burdens.
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Quality and Safety Assurance

Our Quality Assurance Policies and Actions
Under our customer-focused philosophy, the Foster Group considers the delivery of safe, ecofriendly 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, and manufacturing) 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

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

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

Human resource development inquality management

Process

TQM and QMS* at FOSTER

SocialGovernance

External
Recognition

Data
Table

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

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

Enhancing Quality AwarenessOur headquarters has made November the “Quality Month”
and holds a variety of events to improve quality awareness.

Main Events Held Last Fiscal Year■ Lecture on Quality
A lecture on quality was held by inviting outside lecturers. Approximately 170 employees
attended this event.
■ Quality Improvement Exhibition
We hold exhibitions at headquarters and overseas sites to share detailed information on the
improvements.

Contract check
Product feasibility review (DR-0)
Design, prototype production
Design/prototype validation and review (DV, DR1/2)
Mass-production of prototype, validation, and evaluation

Exhibition at the headquarters

Quality certiﬁcation
Mass-production, product inspection, shipment
Customers, markets

Basic Quality Policy

Environment

Global Quality Assurance Structure

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

SystemCreation

Foster Group CSRManagementNote) DR-0: Product feasibility review, DV: Product design validation,
DR1/2: Product design review

We develop QMS by seeking “Zero Defect”

Zero Defect

Our QMS is based on the development of quality assurance andmanagement activities under its customer-focused philosophy since theCompany’s foundation.
▲ In 1975, we formulated the Total Quality Control (TQC) Regulations, which
was upgraded to Total Quality Management (TQM) Regulations in May 2006.
▲ Since 1998, all the Group companies have successfully acquired the QS9000 certification (including ISO9001: 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

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.
■ Global QC Circle Convention
Through the QC Circle activities, opinions from overseas
production sites are valued and used to improve productquality.
Each year, more than 100 QC circle teams are conducting
activities at overseas factories. Among them, 7 teams
that won the QC Circle Convention at each factory gave
presentations of their results at headquarters.

Future Plan
We will continue to enrich its contents and promote its global extension,
aiming to mature our quality-focused corporate culture.
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Customer Satisfaction
Foster Group Sales Department

Fostex Company

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 areworking 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,” asa wise person once said. Needless to say, customers can be created by continuously satisfying
someone’s needs. We consider it as the origin and made our primary responsibility “customer
satisfaction,” which we believe is the principle of all our activities.

The Fostex Company provides high quality products at appropriate prices to deliver an enrichedand comfortable 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 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, languages, but also a deep understandingof 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. Through our 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
happiness to people around the world through our sound.
・With new markets for cars, entertainment, and communications growing at an accelerated
pace, with surrounding areas becoming involved, the markets are being integrated into acomprehensive lifestyle field. Under these circumstances, we strive to provide new productsthat meet changing needs and deliver greater satisfaction to customers around the world.

Structure
We always listen to our customers’ comments and seek what they need so that we offer
products that our customers can use with satisfaction and peace of mind. As such, we haveestablished a project promotion structure across our sales and technical units. In addition to thedomestic market, we understand global needs and strive to develop products specific to eachregion.

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

Future Plan
We will continue to supply our trusted original brand, FOSTEX brand products, to introduce
our high technical competences and the high competitiveness of our products. In particular,
in 2020 we will continue to develop products that can deliver greater listening pleasure to ourcustomers through sound, focusing on the development of a full-range speaker, a strength of
Fostex, and its peripheral devices such as power amplifiers.

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Human Rights Protection
Policies
In 2003, we established the “Foster Group Corporate Action Guideline” and the “Foster Group Codeof Conduct for Staff”, which define our respect for human rights in compliance with all laws andregulations, international rules and their spirits and concepts. We have also requested our business
partners in the value chain to show a similar respect for human rights. An outline is provided below.

Foster Group CSRManagement

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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 thatcompels excessive work or over-time work and so on.
Managers take into consideration the condition of the physical and mental health ofsubordinates at all times.

Activity Promotion Structure

Respect for Employees’ Humanity
Under our labor-management mutual trust and responsibility, we seek to create safe and workfriendly worksites, aiming to help our employees enjoy comfortable and affluent lives. We also
respect our employees’ human rights, personalities, individuality, and abilities. In addition, we
do not support any form of forced labor and child labor.

We have established the CSR 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.

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, skincolor, sexual preference, gender identity disorder, pregnancy, political belief, participation toassociations, 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, or bullying.

Diversity

Sexual Harassment
We do not engage in any act of sexual harassment or any act that could be misconstrued byothers as sexual harassment.
We do not engage in any sexual speech or acts that are offensive to another person and prevent
other persons 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 thework and control 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
workplace environment, understand the laws and orders concerning work-related safety and healthand comply with them. If any work-related disaster arises under any circumstance, Foster Group
Directors and Staff strive to carry out the prescribed procedures such as the creation of an immediate
report in order to minimize and prevent the recurrence of such accident in a reliable manner.
Compliance with Labor-related Laws
We comply with the labor-related laws and endeavor to maintain a comfortable and healthy
workplace environment.

Policies
The Foster Group seeks to create systems and environments in which a diverse workforce ofdifferent genders, ages, nationalities and backgrounds as well as employees who work whileraising 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 new value, 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 andproviding 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 and the nursing care leave period to 183 days maximum. In
addition, we have signed a joint use agreement with 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 careerdevelopment, we are aiming to have female managers represent 30% of all management by theend of March 2021.
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Corporate Profiles/
Financial Information/
Corporate History<Educational Activities on Diversity>
By obtaining knowledge and information regarding diversity, we learned that the participationof diversified human resources will lead to new value creation within the company and theneed to consciously eliminate unconscious bias.
<Our Activities for LGBT (Sexual Minority)>
Currently, the Human Resources and CSR departments are carrying out activities to deepen
understanding of LGBT and increase the number of allies (those who show understanding andsupport for LGBT people). In the future, we will increase allies company-wide through activities
designed to foster understanding.
<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 programfor experiencing acoustic quality evaluation, a program for overseas students, and various othercourses. We have received positive feedback from the participants, who said that they were able
to experience the sound development of Foster. In fiscal 2019, a total of 70 interns participatedin them.
<Global Human Resource Employment>
The Foster Group employs a variety of human resources regardlessof their nationalities, and is actively promoting international
communications in the Group to cultivate human resources andenhance 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 a working 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 / 100 Primes
New Diversity Management Selections 100 (2017) Companies (The following site is in Japanese.)
http://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.)
http://www.meti.go.jp/policy/economy/jinzai/diversity/kigyo100sen/practice/pdf/H29_diversity_bestpractice.pdf

Future Plan・Female manager ratio (at headquarters): To increase the ratio to 30% of all the management by 2021.
・Foreign employee ratio (at headquarters): To increase the ratio to 30% of all employees by 2024.
・ Employment rate of persons with disabilities (at headquarters): To keep the rate above themandatory 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.

Foster Group CSRManagement

Environment

SocialGovernance

External
Recognition

Data
Table

Labor (Labor Practices and Decent Work)
Policies
We put a high value on creating an environment in which each employee can grow throughwork and display their capabilities in a rewarding work. To realize this, we believe it is importantto create a “work-friendly” 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 withvarious 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 haveestablished the innovative 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 thatsatisfy a variety of work-style to promote diversity and realize a work-lifebalance.
In 2017, we applied the flex time system to all employees and introduced
the work-at-home program. As for the work-at-home program, we
introduced it at full scale without limiting the targets, and have been selected as one of the “Top100 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 to become a company that can offer a more desirable work environment andfulfilling career.
<Returning Overtime Money>
In order to advance not only the efforts of individual employees but also the organizational
efforts to improve operational efficiency, we return overtime money twice a year to the sections
that have reduced their overtime work hours by 10% or more.
This promotes the improvement of operational efficiency according to the actual situation ofeach section and awareness-raising to achieve further overtime reduction.

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Foster Group CSRManagement

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External
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Data
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<Enhancement of the Leave System and the Leave of Absence System>
Since April 2018, we have introduced the volunteer leave system, so employees can growthrough volunteer activities. We have also introduced the system that grants the leave ofabsence for up to two years to the employees who desire to pursue further education to
deepen and expand their own expertise and the system that grants the leave of absence for up
to five years to the employees who desire to accompany their spouses on overseas assignment.
* March 2020: Introduced hourly paid leave system for those requiring childcare.
* April 2020: Started a trial for hourly paid leave system utilizing preserved leave for all theemployees.
* Adopted 4 days of new simultaneous leaves in 2019 (The rate of paid holiday leaves taken in2019 resulted in 82.3% against 80% target.)Future Plan

<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,” in which we give points and provide health incentives to employees, and a “Smoking
Cessation Support Program,” which subsidizes the expenses paid to medical institutes to theemployees who wish to quit smoking.
These initiatives were evaluated and we received “Certification of Excellent Company in Health:Gold Accreditation” from the Tokyo Promotion Council for Healthy Company Declaration in
February 2018. This certification was later renewed in January 2020. In February 2019, we wereawarded the “Health and Productivity Management Outstanding Organization: White 500”
(Ministry of Economy, Trade and Industry). In March 2020, we have also received recognition for“Health and Productivity Management Outstanding Organization: Large Enterprise Category”.

Our human resource development is based on "continuous performance by linking various
personnel systems with individual development goals determined by mid/long term businessstrategy 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 andimplementation and who can create value continuously.
• Self-directing personnel who are conscious about their expected and assigned roles andmissions and who can take responsibility for their own actions and results.

Target for 2020:• Total working hours (at headquarters): Average 152 hours per month• Rate of periodic health examinations taken (at headquarters): Maintain 100%, and achieve
80% for re-examination rate
• Rate of specific health guidance taken (at headquarters): 80%

Human Resource Development
Policies

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 canembody those corporate philosophies and create a lively organizational environment.

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Corporate Profiles/
Financial Information/
Corporate History

Main Activities, Measures, and Development• T o promote philosophy-focused management (Way Management), enhance the powerof human resources and organization, and transform the organization, the Foster Groupdeveloped the action guidelines by redefining “the ideal company.” We summarized those
into the “Foster Rhythm Guidebook” and “Foster Rhythm Card” and distributed them to ouremployees across the world. We are also continually providing workshops and various kinds ofeducation programs.
• As part of our long-term strategies of developing managerial personnel with a view to
become a centennial company in 2049, we implement the Global Leadership Development
Program (GLDP) to foster reform-minded human resources for the next and future generations
globally. GLDP is a program where we select 3 different talent categories based on the job andexperience levels; ① Next Leaders ② Future Leaders ③ Rising Suns and implement the best
suited talent development according to each category. The Next Leaders and Future Leaders
programs have already been launched.
• We are working to promote diversity and foster and enhance the global mind of our employees
by regularly conducting “Inter-Cultural Communication Training” at various levels. We have also
introduced the Global-eye Program, a new overseas training program for young employees, topromote the planned and 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 rangeof selections according to each employee’s career plan, life stage, and work-life balance. At thesame time, we are also working to promote the development of engineers by providing lifecareer design training and introducing the “Technical Master System.”• To promote localization of overseas site management, we are also actively working on thedevelopment of the local managing staff at each site. Specifically, we ran the Global Leader’s
Training and facilitated human resources exchange by the Overseas Trainee Program andthe international employee reassignment within Group companies, etc. to develop humanresources globally.

Foster Group CSRManagement

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SocialExternal
Recognition

Data
Table

Health and Safety
Policies

Foster Electric has established a rule to prioritize health and safety, and endeavors to create asafe and healthy working environment. Based on this rule, we are advancing redressing activities,
which are carried out mainly by the Health and Safety Committee, which governs health andsafety, 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,
engineering and 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,and controlled.
(5) Employee exposure to the hazards of physically demanding tasks is to be identified, evaluatedand controlled.
(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 suitabledrinking 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 supervisionof its upper-level organization, the Risk and Crisis Management Committee. By sharing
information among the health and safety management organizations at each site, the Group is
working as one to create an appropriate working environment.

Future Plan
• Promoting human resource development aimed at forming a solid foundation of humanresources to be the next-generation leaders of Foster• Building a portfolio of diverse human resources by eliminating every form of discrimination
based on age, gender, nationality, creed, or other attributes, based on the belief that a truly
diverse and inclusive organization enables high productivity• Promoting true workstyle reforms by empowering employees to determine where and when
to work in accordance with their own circumstances and by offering diverse career planning
options, including second jobs and the establishment of administrative subsidiary• Establishing a corporate climate which enables all employees to feel pride as a professional
and the pleasure of working for Foster and to positively impact on all the stakeholders

GovernancePresident

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

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External
Recognition

Data
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Main Activities

Initiatives at Overseas Sites

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 consistsof representative workers and management, discusses site-specific 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 andsafety issues for all employees based on the “Foster Group Corporate Action Guidelines” and the“Foster Group Code of Conduct for Staff”.
This year, the Health and Safety Committee took the lead to implement prevention measures tocope with threats from Covid-19. The headquarters has continuously worked on the plan basedon the policy of the Health and Safety Committee, “Globally reduce risks and make provisions
against the occurrence of crises,” as an initiative to address individual issues. Especially thisyear, we prohibited smoking on the premises at headquarters to promote employees’ health.
Furthermore, we have driven actions to reduce the use of VOC from the product development
stage, to eliminate risks possibly leading to serious consequences. These initiatives were
evaluated and we received “Certification of Excellent Company in Health: Gold Accreditation”
from the Tokyo Promotion Council for Healthy Company Declaration in December 2018, which
was later renewed in January 2020.

At our overseas manufacturing sites, we improve health and safety related matters through theManagement Systems.
Following the OHSAS 18001 certification obtained by Nanning Plant in China in July 2018, Bac
Ninh Plant in Vietnam and Panyu & Heyuan Plants in China obtained the ISO 45001 certification
during Oct-Dec 2019.

Future Plan
Following the previous year, we will build a global structure based on ISO 45001-Occupational
Health and Safety Management System and promote information sharing by Health and Safety
Committee.

Bicycle Safety
Some employees working at headquarters use bicycles for their work or commute, and theirsafe 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.

Award ceremony for the “model company for bicycle safety”

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Social Contribution Activities《Headquarters》
Policies

With our mission “Through acoustic products or its solutions,a total commitment to help create a comfortable life andpleasure of communication around the world. A truly global
enterprise our future society counts on.”, the Foster Groupwill seek to earn greater trust from the community throughbusiness activities in which we evolve together with local
residents.

Corporate Profiles/
Financial Information/
Corporate History

Foster Group CSRManagement

Environment

As a lead member of “Akishima City’s Environmentally Friendly
Business Operator Network”, we have taken part in the “Akishima
Industrial Festival”, the “Environment Green Festival”, andother environment events. We pursue our environmental
preservation activities in cooperation with neighboring
companies and the staffs of Akishima City Environment Section.
Also, valuable feedback from citizens through the events arehighly beneficial for our activities. We will continue our efforts
toward environmental protection with all citizens in the future.

Main Activities

Governance

In December 2019, we held “Winter Vacation Parent &Child Crafts Class”, a winter holiday event for parent-childinteraction as part of the Akishima community courses, which
was well received.

External
Recognition

Data
Table

welfare in the local community. In January 2020, the Social
Welfare Council held its 50th anniversary ceremony, andreceived a certificate of gratitude for these activities.

Social Welfare Council’s 50th
anniversary ceremony

Code of Conduct
We actively participate in social contribution activities as agood corporate citizen to contribute to the development ofsociety. We continuously perform social contribution activities
such as support for culture and the arts, cooperation withlocal communities, participation in volunteer activities andcontributions to international communities to play the role ofa corporate citizen.

SocialPresident’s speech at the ceremony<Crime Prevention and Disaster Readiness Initiatives>
To support the 2020 Tokyo Olympic and Paralympic Games,
Foster cooperates with the Tokyo Metropolitan Police
Department against terrorism. Our activities are not limited
to crime prevention, but we also conduct wide-rage activities
such as fundraising for the unfortunate crime victims.

<Communicating with the Community>
We continued 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 willcontinue to pursue activities to win the affection of the local
community.

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 with the local community through efforts
such as cooperation with the Akishima Location Service
to engage in activities for revitalizing the local area anddonations to the Social Welfare Council to contribute to

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Top Message

Foster Group CSRManagement

Environment

SocialGovernance

External
Recognition

Data
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Social Contribution Activities《Overseas sites》
Foster Group’s overseas sites provide active support for regional volunteering and donation activities, activities to support victims and those who are economically disadvantaged, and otherinitiatives each year.

【Myanmar】
April 2019: Over 200 employees
participated and donatedblood to the National Blood
Center Myanmar.

April 2019: We participatedin the donation event for
elderly people, held near
Thilawa Special Economic
Zone.

【Vietnam】
January 2020: We gave New
Year’s donations to theneedy in Cam Le Districtand Hoa Vang District in thesuburbs of Da Nang.

May 2019: We gave donations
to an employee’s familywith children who havedisabilities caused by the
Agent Orange residue.

August 2019: We donatedclothing, food, and necessities to the Monsoon flood
victims.

【China】
January, February, May 2019:
We offered gifts to employees who are economicallydisadvantaged.

May 2019: 66 employees contributed to blood donations andreceived recognition from Heyuan City Voluntary Public Blood
Donation Committee.

September 2019: We offered donations to economicallydisadvantaged employees who were registered in the China’s
poverty aid system. System in Nanning City.

January 2020: We collected
donations for the childrenof an employee who passed
away during the past year,
for their future education.

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Top Message【Korea】
ESTec Corporation, a Group
company in South Korea,
performs activities such as
donation and musical contest
sponsorship every year.
January,
February,
andSeptember 2019: Charity
funds for neighbors raised by our officers and employees 3
times a year were donated through the inhabitant life support
office to those in need of support in the Yangsan area.

Corporate Profiles/
Financial Information/
Corporate History

Foster Group CSRManagement

Environment

SocialGovernance

External
Recognition

Data
Table

《Column》Aung San Suu Kyi paid a visit to Foster Thilawa Plant in Myanmar.
Aung San Suu Kyi, Foreign Minister and the State Counselor of Myanmar,
visited Foster Thilawa Plant located in Thilawa Special Economic Zone
near Yangon, to inspect speaker production line. She gave kind words toour employees, which further raised their morale with appreciation.
The Foster Thilawa Plant primarily manufacture car speakers andincreasingly gained their position as a global production site. In the
future, we will set up a system to increase our production capacity, andendeavor to contribute to further development of Burmese and global
economies.

July 2019: We sponsoredthe 17th Eom Jeong Haeng
National Musical Contest.
We have sponsored thiscontest since 2004.

December 2019: All our employees pickled 200 boxes ofkimchi (approximately 1,500 kg) together and sent them tothose who are economically disadvantaged (elderly living
alone, people with serious disabilities, and households with achild acting as the head of household), through the Yangsan
Volunteer Center. This "Kimchi sharing with love" event has
been carried out every year since 2010.

【United States】
July 2019: We supported the persons
and their families who were affected bya tragedy that caused injuries and lossof life through financial contribution to
the “El Paso Victims Relief Fund”.

October 2019: Each year, we givefinancial contribution to the “Make a
Wish Foundation” that uses community
donations to allow children who arebattling critical illness to enjoy theirlife-long wish or dream experience.

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Corporate Profiles/
Financial Information/
Corporate History

Foster Group CSRManagement

Environment

GovernanceCorporate Governance

Board of Directors

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 themeetings 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
who serve 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 thebusiness divisions, 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, the Domestic Group Company Meeting is held by the top executives responsible
for the management of the domestic 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 andmanufacturing. 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
the details of their remuneration, etc. Each committee consists of representative directors, managing
directors, 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 officers for both of these committees.

Data
Table

Accounting Auditor

Statutory Auditors / Board of Statutory Auditors
Management Monitoring

President(Internal Control)

Management Meeting

Board ofManaging Directors

Corporate Governance Structure
Board of Directors
The Board of Directors meetings are held regularly on a monthly basis and whenever necessary to
discuss and 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.

External
Recognition

Governance

General Meeting of Shareholders

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

SocialDivision Head Meeting

Corporate Staﬀ
Departments

Business Divisions
Domestic Group
Company Meeting
Global Budget
Meeting, etc.

Internal Audit
Department

CSR Committee
Compliance Committee

Risk and Crisis Management Committee
Environment Committee
Personal Information Management
Committee, etc.

HotlineCorporate
Philosophy

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(Available in Japanese)

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

Foster Group Corporate Action Guideline
The Foster Group has established Corporate Action Guideline that express our actions
with public decency in compliance with laws and regulations inside and outside of 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

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ComplianceFoster Group CSRManagement

Environment

SocialGovernance

External
Recognition

Data
Table

Compliance Committee

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

The Foster Group's compliance programs are led by the Compliance Committee with thepresident as a chief executive officer.
In 2019, a compliance survey was conducted in addition to the compliance test. Also, an outside
expert was invited to hold a compliance training to officers and managerial posts in an effort toraise compliance awareness.

Compliance Structure

Future Plan

The Foster Group places emphasis on the internal whistleblowing system to promotecompliance. Such system 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 asa window to early detect violations of compliance. The whistleblowing hotline is extensively
available to employees and officers of the entire Group as well as to their families and theemployees of business associates. We also hold “Compliance Hotline” and “Harassment
Helpline” briefing sessions to thoroughly disseminate to our employees.
For the protection of whistle-blowers, the internal reporting regulations are established anddisseminated to ensure 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
and provision 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 andimprove the compliance structure.

Policies

Risk Management
Policies

Chief Executive

The Foster Group is focused on predicting risks and taking preventive measures so that suchrisks will not materialize. They also focus on minimizing damage to the Company should a risk
develop and materialize, resulting in the occurrence of danger. Specifically, we have establisheda structure for prompt response in the event of a crisis and a response structure for any serious
risk or incident when it is predicted. Meanwhile, we are strengthening the risk management
structure for usual conditions under our basic operation policy of enhancement and global
expansion of risk management ability and crisis responsibility.

Chairperson

Risk Management Structure

Organization of the Compliance Committee(The same structure applies to the Risk and Crisis Management Committee.)Vice Chairperson
Consultation Contacts / Hotline

Secretariat

Committee members from the headquarters / Committee members from Group companies

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 withthe president as the chairman to identify risks using a checklist, analyze such risks and promote
preventive measures on a Group-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.

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Risk and Crisis Management Committee
The Committee identifies and evaluates risks based on the result of risk reexamination
conducted by respective department each year. The Committee determines important risk
items that require controls, and such items are being monitored the Committee held on aregular basis. The risk evaluation result is also referenced during the business policy planning. In
2019, our important risk items reviewed were the business continuity plan (BCP), supplier BCP
structure building, and information security management system.
Measures for Addressing COVID-19
To control the spread of COVID-19 and in response to the government declaration of a state of
emergency, the Foster Group took the following measures to ensure the safety of its employees,
suppliers, people from local communities, and others. All overseas Group companies, including
those in China, continued business activities while taking thorough safety and hygiene
measures, including measures to prevent infection and monitor the health of employees.
Particularly, in China, we produced face masks internally.
Measures to control the spread of COVID-19• Having employees work from home, in principle, and minimizing the number of employees
who come into work
• Offering hourly paid leave on a trial basis• Introducing group-wide holidays during which 100% ofsalaries are paid
• Using internet conferencing to reduce face-to-face meetings• Having employees work staggered hours or flexible hours
where they must come into work
• Introducing flexible working hours without core hours• Measuring the body temperature of employees with athermographic camera and having them disinfect themselveswith alcohol when they come into work
• Prohibiting employees from taking business trips, in principle• Prohibiting employees from participating in external eventsand parties, in principle• Requesting that business partners refrain from visiting our offices and other workplaces asmuch as possible• Establishing a work from home allowance

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 andCrisis Management Committee to further enhance the risk and crisis management structure.

Foster Group CSRManagement

Environment

SocialExternal
Recognition

Governance

Data
Table

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 arisk occur or be embodied, with the highest priority given to preventing the recurrence of risks/crises.

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

Vice Executive Chairperson

Secretariat

Committee members
from the New Business
Development Division

Committee members
from the Global Corporate
Support Division

Committee members
from the Corporate
Management Division

Committee members
from Quality Assurance
Division

Committee members
from the Internal
Audit Department

Committee members
from the Corporate
Planning Department

Committee members fromthe Engineering Division

Committee members fromthe Sales Division

Committee members fromthe Production Division

Committee members
from the Fostex Company

Committee members
from the Foster Micro
Acoustic Company

Committee members
from the Corporate Information
Strategy Department

Committee members
from Group companies

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 thatallow headquarters to issue an emergency notice to confirm thesafety of its employees and their families when an earthquake,disaster, or other emergency occurs.
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 from the Akishima Fire Department. In
future, we will continue to work to be a company that is neededin the community.

Certificate of gratitude for fire
prevention and life safety measures

Certificate of gratitude for regionalsafety and disaster prevention

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Corporate Profiles/
Financial Information/
Corporate History

Top Message

Enhancing Disaster Prevention Measures
In 2019, we participated in the self-defense firefighting screening board sponsored by Akishima
fire department, and won the first prize in the pair operation method for indoor fire hydrant. We
will continue to enhance fire prevention measures.

Foster Group CSRManagement

Environment

SocialGovernance

External
Recognition

Data
Table

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

Governance
The Foster Group has established the global tax department within the corporate management
division at 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
Self-defense firefighting screening board (Headquarters)

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

The Foster Group determines prices for dealings between its affiliated companies based on theprinciples of pricing between independent companies.

Relationship with Tax Authorities
The Foster Group works to reduce tax uncertainty by responding in good faith to priorconsultations and related information disclosure to tax authorities. In addition, the Group uses
the Advance Pricing Agreement (APA) to obtain prior agreement with tax authorities.

Transparency

Fire drills (China)

Relief training (China)

Fire drills (Vietnam)

Future Plan

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 thefinancial statements based on the related laws and regulations.
The Group also understands that the BEPS (Base Erosion and Profit Shifting) project by OECDis essential to prevent international tax avoidance and abusive tax planning and to secure thetransparency of taxes through the disclosure of tax information. As such, the Group follows
proper reporting procedures to CbCR (Country-by-Country Reporting).

We will drive BCP system building that can flexibly respond to such unexpected situations as
globally threatening Covid-19 pandemic, and strive to be a company that our stakeholders canrely on.

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Top Message

Corporate Profiles/
Financial Information/
Corporate History

Foster Group CSRManagement

Environment

SocialGovernance

External
Recognition

Data
Table

Information Security and Personal Information Protection
Policies

Main Activities and Measures

Foster Electric Co., Ltd. and its subsidiaries ("the Group") recognize the importance of securing
the trust of customers, suppliers, shareholders, employees and other stakeholders based on its
corporate creed of “Sincerity.” Appropriate management of information assets is an importantpart of the management agenda.
To appropriately protect and handle the information assets possessed by the Group, we define
the information 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

The Group takes appropriate measures as organizational, human, physical and technical safety
management initiatives against security threats, which change daily, to prevent unauthorizedaccess, 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 theBusiness Continuity Plans (BCPs).
• Assurance of the awareness of the information security policies and respective standards■ Information Security Policies:
https://www.foster-electric.com/security/index.html

Activity Promotion Structure

Information Security Committee
Chief Executive

Committee
memberCommittee
memberCommittee
memberTask force

Committee
memberChairperson

Vice Chairperson

Secretariat

Information Security Auditor

For protection and appropriate management of all information assets possessed by the Group,
it has established the Information Security Committee, which mainly consists of management,
to maintain the system for understanding the management status of information security andprompt implementation of required security measures according to the risk analysis results.

Chief of Secretariat
Secretariat at
the headquarters

Secretariat at eachGroup company

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Philosophy

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Corporate Profiles/
Financial Information/
Corporate History

External Recognition【Japan】
New Diversity Management Selection 100 (2017)

March 2018: Recognized for our activities to promote diversity and achieve work-lifebalance, we were selected as one of the winners of the New Diversity Management
Selection 100 (2017) by the Ministry of Economy, Trade and Industry.

2020 Health and Productivity Management Outstanding
Organization (Large Enterprise Category)March 2020: Recognized for our initiatives that consider employee’s health fromthe management perspective and practice it strategically, we were certified as
one of the winners of the 2020 Health and Productivity Management Outstanding
Organizations (Large Enterprise Category) by the Ministry of Economy, Trade andIndustry and Japan Health Council.

Certification of Excellent Company in Health: Gold Accreditation

January 2020: Highly evaluated for our active initiatives to realize healthy
management, we received the Certification of Excellent Company in Health: Gold
Accreditation from the Tokyo Promotion Council for Healthy Company Declaration.

Selected for the S&P/JPX Carbon Efficient Index by the Government
Pension Investment Fund (GPIF)

We have been selected as a constituent of the S&P/JPX Carbon Efficient Index since
its launch by Japan's GPIF in 2018. The index bases evaluation on the company's
disclosure status and CO₂ emissions data.

Selected for SNAM Sustainability Index (2019)

February 2020: We have been selected as a constituent of the SNAM Sustainability
Index for the fourth consecutive year. The index was launched by Sompo Japan
Nipponkoa Asset Management (SNAM) in August 2012, and places weight on the
ESG evaluation by rating firms.

【Overseas sites】
GlobalCDP

February 2020: We received “B-: Management Level” for Climate Change category
and “C: Awareness Level” for Water Security category for 2019 survey by CDP, a British
non-profit organization that evaluates and discloses information on organization’senvironmental management.

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”.

Foster Group CSRManagement

Environment

SocialGovernance

External
Recognition

Data
Table

Vietnam
FOSTER ELECTRIC (DANANG) CO., LTD.

Awarded for our excellent social security program by Viet Nam Social
Security

January 2019: Evaluated for our excellent achievements in the social security
program during 2018-19, we were awarded by the general director of Viet Nam
Social Security.

Awarded for the excellent employee treatment by Labor Trade Union of
Da Nang industrial zone
July 2019: Evaluated for our activities such as physical and mental health care,organizing sports events and scholarships, good employee treatment, we wereawarded a certificate by the Labor Trade Union of Da Nang industrial zone.

FOSTER ELECTRIC (QUANG NGAI) CO., LTD.

Awarded as a company that contributed to the development of Dung
Quat economic zone

September 2019: Dung Quat economic zone management committee awarded acertificate for contribution to its economic development of the area.

FOSTER ELECTRIC (BAC NINH) CO., LTD.

Awarded for our excellent social security and health programs by Bac
Ninh Social Security
December 2019: Evaluated for our active promotion of social security and healthprograms during 2019, we were awarded by the general director of Bac Ninh Social
Security.

Awarded for appreciation to the “efforts in good employee treatment”
by Bac Ninh Labor Union
February 2020: The Bac Ninh Labor Union evaluated and awarded a certificate toexpress appreciation for our “efforts in good employee treatment”.

China
FOSTER ELECTRIC CO., (HEYUAN) LTD.

Awarded for our donation and relief contribution by Gao Xin Qu
administration, Heyuan

June 2019: Evaluated for our donation to the needy and flooding relief contribution
in Heyuan area, we were awarded by the administration of Gao Xin Qu
administration, Heyuan.

【Surveys from External Organizations】

The Foster Group responds sincerely to the CSR surveys received from external investigatory bodies.
Last year, we received and responded to 13 surveys regarding SDGs, CSR, ESG, SRI and others. Among them
was the “CSR company ranking survey”, which was conducted by Toyo Keizai Inc., we ranked 261th (outof total 1,593 companies). We will continue to respond to the survey requests from external investigatory
bodies with sincerity.
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Corporate Profiles/
Financial Information/
Corporate History

Foster Group CSRManagement

Environment

SocialExternal
Recognition

Governance

Data
Table

Data Table
Economic Data
201-2

202-2

Financial implications and other risks and opportunities due to climate change

Proportion of senior management hired from the local community

Costs for measures taken to manage risks and opportunities - total environmental protection expenditures andinvestments by category

Location

Environmental preservation cost (classified by business operations)
Location

Key activity andthe outcome

Category(1) Business area cost

Breakdown

Japan(4) R&D costs

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

Japan

0

22,744Asia(1)-1 Pollution prevention costs

Air and water control-related
prevention countermeasures

0

1,009

(1)-2 Global environmental
conservation costs

Prevention of global warming
and energy-saving measures

0

1,587

(1)-3 Resource circulation costs

Waste disposal and recycling

0

20,148

0

0

0

7,401

0

1,729,571

0

631

0

0

0

1,760,346

FOSTER(2) Upstream/
Green purchasing expenses
ELECTRIC
downstream costCO., LTD.
(Headquarters) (3) Administration costs Environmental education, EMS
construction expenses etc.
Research and development etc.

(5) Social activity costs

Tree planting etc.

(6) Environmental
damage handling
costs
Total

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

Ratios of standard entry level wage by gender compared to local minimum wage
Location*1

Ratio (%)
The same ratio formale and female

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

105

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

112

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

N/A

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

105

North America

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

103

EuropeFOSTER ELECTRIC (EUROPE) GmbH and group companies

114

Japan

Asia

*1 Significant locations of operations: The headquarters and 11 main sites that are checked based on J-SOX internal control framework.

100

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

90

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

100

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

75

North America

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

70

EuropeFOSTER ELECTRIC (EUROPE) GmbH and group companies

100*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 11 main sites that are checked based on J-SOX internal control framework.

204-1

Proportion of spending on local suppliers
Location*1

Percentage*2 (%)

Content

All procurement sites in China

Local procurement rate of materials in China

88

All procurement sites in ASEAN Local procurement rate of materials in Vietnam, Indonesia, and Myanmar

64*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* “Investment” refers to equipment investments for the purpose of environmental conservation. “Cost” refers to personnel and miscellaneous
expenses/costs incurred for environmental conservation activities.

202-1

Percentage (%)
of senior management*1
hired from the local
community*2*3

Total number ofoperations

Location
Domestic andoverseas companies

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 anti-corruption policies and procedures
Total number and percentage of
notifications on anti-corruption relatedorganizations policies and procedures.

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

83

84

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Foster Group CSRManagement

Environment

SocialExternal
Recognition

Governance

Data
Table

Environmental Data
301-2

Recycled input materials used

305-3

Location
Overseas

Other indirect (Scope 3) GHG emissions

Percentage (%)

All procurement sites (China/Vietnam/Myanmar)

Category
11

Emissions (t-CO₂)

1. Purchased goods and services

218,512* Recycled material percentage of all the resin materials purchased.

2. Capital goods

302-1

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

7,591

4. Upstream transportation and distribution

23,972

5. Waste generated in operations

2,140

Energy consumption within the organization
Purchased
DieselNaturalGasoline
LPG
Electricity
FuelGas(liter)（liter）(MWh)(liter)(liter)LocationJapan

FOSTER ELECTRIC CO., LTD. (Headquarters)

Asia

North
America

2,108

8,064

0

0

Total FuelCity Consumption
in theGas(m3） Organization（MWh）

0 14,384

2,364

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

29,89843,337

2,066

0

0

0

30,336

FOSTER ELECTRIC CO., (NANNING) LTD.

12,012

23,679

6,810

0

0

0

12,311FOSTER ELECTRIC CO., (HEYUAN) LTD.

15,757

46,258 17,393

062,2640

17,136

FOSTER ELECTRIC (VIETNAM) CO., LTD.

9,623

19,396

5,150

19,1600

010,134

FOSTER ELECTRIC (DA NANG) CO., LTD.

4,591

11,0204,723

19,358

0

0

5,020

FOSTER ELECTRIC (QUANG NGAI) CO., LTD.

1,552

2,640

280

11,190

0

0

1,738

FOSTER ELECTRIC (BAC NINH) CO., LTD.

22,34634,3384,570

54,5940

023,494

FOSTER ELECTRIC (THILAWA) CO., LTD.

7,892

25,673

8,920

0

0

0

8,232

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

544

1,750

12

0

0 78,137

1,534

216,155 49,924

104,30262,264 92,521

112,299

Total

106,323

Upstreamcategories

6. Business travel

1,661

7. Employee commuting

4,309

9. Downstream transportation and distribution
Downstream
11.Use of sold products
categories
12. End-of-life treatment of sold products

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

2013

2014

2015

2016

2017

2018

2019

Scope 1 (Direct greenhouse gas(Unit: t-CO2）
emission from business activities)

2,198

2,403

2,431

2,155

2,549

2,381

1,745

1,290

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

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

Scope1+2 total(Unit: t-CO2）

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

Sales (JPY)(100 million yen)

1,436

1,660

1,891

1,910

1,611

1,849

1,403

1,073

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

FOSTER ELECTRIC CO., LTD. (Headquarters) and 9 overseas manufacturing sites
CO2 Conversion Factor (Electric) Japan: Ministry of Environment, 2012 factor based on CO₂ conversion factor of electric power supplier (2013)
			
Overseas: IEA, 2012 factor based on CO₂ emissions from fuel combustion (2014)
CO2 Conversion Factor (Fuel) Japan/overseas: Factor based on the “Greenhouse gas emissions calculation and report manual” released by the
Ministry of Environment, Ministry of Economy, Trade and Industry.
Incorporated 100 year value of IPCC Fifth Assessment Report (AR5)Based on the “Low Carbon Implementation Plan” by the electrical and electronics industries in Japan, we have set the mid-term target for2020 to reduce by an annual average of 1% emissions from fiscal 2012 base year.

4,945

Total

303-3
303-5

340,338

Water withdrawal / 303-4 Water discharge
Water consumption / 306-1 Water discharge by quality and destination
Location

Japan

Asia

2012

3,206
73,323

Scope: FOSTER ELECTRIC CO., LTD. (Headquarters) , 2 domestic and 12 overseas sites* Calorific Value (Fuel): Japan/Overseas: Factor based on the “Greenhouse gas emissions calculation and report manual” released by the
Ministry of Environment, Ministry of Economy, Trade and Industry.

302-3
305-2
305-5

679

FOSTER ELECTRIC CO., LTD. (Headquarters)

Water
withdrawal(Unit: m3）

Waterdischarge(Unit: m3）

Total water
consumption(Unit: m3）

9,925

9,429

496

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

384,254

307,40376,851FOSTER ELECTRIC CO., (NANNING) LTD.

64,13451,307

12,827

FOSTER ELECTRIC CO., (HEYUAN) LTD.

170,303136,242

34,061FOSTER ELECTRIC (VIETNAM) CO., LTD.

98,92879,142

19,786
9,352

FOSTER ELECTRIC (DA NANG) CO., LTD.

46,75937,407

FOSTER ELECTRIC (QUANG NGAI) CO., LTD.

6,802

5,442

1,360

FOSTER ELECTRIC (BAC NINH) CO., LTD.

87,55370,042

17,511FOSTER ELECTRIC (THILAWA) CO., LTD.

88,74970,99917,750

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

2,215

1,772

443

959,622

769,186

190,436

Water
withdrawal(Unit: m3）

Waterdischarge(Unit: m3）

Total water
consumption(Unit: m3）

Total

Category
Surface water

-

-

-

Groundwater

-

-

-

Seawater---

Produced water

-

-

-

959,622

769,186

190,436

959,622

769,186

190,436

Third-party water
Total

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306-2

Top Message

Foster Group CSRManagement

Hazardous waste (Unit: ton)Japan

Total waste

FOSTER ELECTRIC CO., LTD. (Headquarters)

Asia

North
America

0.00

North
America

0.00
0.00

81.00

FOSTER ELECTRIC CO., (NANNING) LTD.

30.90

0.00

30.90

FOSTER ELECTRIC CO., (HEYUAN) LTD.

37.61

0.00

37.61

FOSTER ELECTRIC (VIETNAM) CO., LTD.

46.32

9.90

36.42

FOSTER ELECTRIC (DA NANG) CO., LTD.

77.36

0.23

77.13

FOSTER ELECTRIC (QUANG NGAI) CO., LTD.

12.61

0.14

12.47

FOSTER ELECTRIC (BAC NINH) CO., LTD.

94.72

65.63

29.09

FOSTER ELECTRIC (THILAWA) CO., LTD.

32.00

0.00

32.00

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

0.00

0.00

0.00

412.5275.90

336.62Non-hazardous waste (Unit: ton)
Total waste

Recycling

SocialExternal
Recognition

Governance

Data
Table

New employee hires and employee turnover
New employee hires

0.00

81.00

Location

Asia

401-1

Landfill

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

Total

Japan

Recycling

Environment

Social Data

Waste by type and disposal method
Location

Landfill

FOSTER ELECTRIC CO., LTD. (Headquarters)

81.67

74.52

7.15

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

449.00449.000.00

FOSTER ELECTRIC CO., (NANNING) LTD.

125.740.00

125.74

FOSTER ELECTRIC CO., (HEYUAN) LTD.

278.55278.550.00

FOSTER ELECTRIC (VIETNAM) CO., LTD.

315.54225.58FOSTER ELECTRIC (DA NANG) CO., LTD.

190.79FOSTER ELECTRIC (QUANG NGAI) CO., LTD.

80.38

FOSTER ELECTRIC (BAC NINH) CO., LTD.

Location

By gender
Male

Japan

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

Overseas

All overseas sites

FemaleBy age group
Total

Under 30

30 - 50

Over 50

Total

39

16

55

21

28

6

55

3,787

8,356

12,143

8,739

3,391

13

12,143

Employee turnover
Location

By gender
Male

Japan

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

Overseas

All overseas sites

FemaleBy age group
Total

Under 30

30 - 50

Over 50

Total

17

14

31

10

14

7

31

3,705

13,363

17,068

9,320

7,626

122

17,068401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees
Contents

Location*1
Japan

FOSTER ELECTRIC CO., LTD.
(Headquarters)

Retirement allowance

89.96

Overseas

11 Significant locations ofoperations

Medical insurance, parental leave, retirement allowance, life insurance, disability
and illness compensation etc.

129.6161.18*1 Significant locations of operations: The headquarters and 11 main sites that are checked based on J-SOX internal control framework.

44.87

35.51

1,186.68

746.38440.30

FOSTER ELECTRIC (THILAWA) CO., LTD.

220.9418.00

202.94

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

380.40229.04151.36

3,309.69

2,195.55

1,114.14

Total

308-1

Corporate Profiles/
Financial Information/
Corporate History

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

401-3

Parental leave

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

Location

Total number of employees thatwere entitled to parental leave*¹
Male

Japan

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

Overseas

All overseas sites

FemaleTotal

Total number of employeesthat took parental leave*²
MaleFemale

Total

510

155

665

6

11

17

3,445

16,245

19,690

203

1,663

1,866

Return to work rate / Retention rate

100

Location* We distribute our environmental regulations to all the suppliers, update them and obtain environment-relatedmaterials.

Total number of employees
due to and did return to work
after parental leave
Male

Japan

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

Overseas

All overseas sites

Female

Total

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

Female

Total

6

4

10

100

100

100

204

1,370

1,574

100

91

92

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34

Corporate
Philosophy

Corporate Profiles/
Financial Information/
Corporate History

Top Message

Foster Group CSRManagement

404-1

Location

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

Japan

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

Overseas

All overseas sites

FemaleMale

Female

5

1

6

100

100

100

163

1,412

1,575

71

74

74

Japan
Overseasi. The number andrate of fatalities asa result of workrelated injury
Fatalities

Injuries0

All overseas sites

0iv. The main types of work-related injury

13

9

14

13

Overseas

All overseas sites

22

18

19

15

19

19

GeneralManagement/
General Total

404-3

Percentage of employees receiving regular performance and career development reviews

Injuries

v. Thenumberof hours
workedRate*3

0.00
0.00

0

0.00

1

0.02

1

0.79

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

84

72

81

88

79

81

Overseas

All overseas sites

58

45

47

71

46

47

Diversity of governance bodies and employees

46

1,354,650

Location

1.02 45,598,722=

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

FemaleUnder 30

30 - 50

Over 50

Japan

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

94

6

0

3

97

Overseas

All overseas sites

95

5

0

29

71

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

Location

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

b. For all workers who are not employees
but whose work and/or workplace iscontrolled by the organizationa. For all employees

Percentage (%)
Male

Employee (by gender/age)Work-related ill healthi. The number ofii. The number ofi. The number ofii. The number offatalities as a result of cases of recordable fatalities as a result of cases of recordable
work-related ill health work-related ill health work-related ill health work-related ill healthJapan

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

0

0

0

0

Overseas

All overseas sites

0

0

0

0

iii. The work-related hazards that pose a riskof ill healthFemale

Japan

405-1

Fracture, wound, bruise, sprain etc.

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

Location

Male

Male/
Management
Female Total

Governance bodies (by gender/age)*1 Rate of fatalities as a result of work-related injury =403-10Management/
General Total

12* There were no fatalities or injuries for “ b. workers who are not employees but whose work and/or workplace is controlled by the organization.”*3 Rate of recordable work-related injuries

GeneralPercentage (%)

ii. The number
and rate of highiii. The number andconsequence workrate of recordable
related injuries
work-related injuries(excluding fatalities)

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

Male/
Management
Female Total

Female13

a. For all employees

Rate*2

Male

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

Location

Rate*1

Data
Table

Japan

Total

Work-related injuries

Location

External
Recognition

Governance

Average hours of training (hours)
Location*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

403-9SocialAverage hours of training per year per employee

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

Total

Environment

Percentage (%)
Male

FemaleUnder 30

30 - 50

Over 50

Japan

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

76

24

8

47

45

Overseas

All overseas sites

17

83

43

56

1

405-2

Ratio of basic salary and remuneration of women to men

Ratio of the basic salary and remuneration of women to men for each employee category, by significant locations of operation.

Location

Ratio (%)
Management

GeneralJapan

FOSTER ELECTRIC CO., LTD.
(Headquarters)

100

100

Overseas

11 Significant locations ofoperations

100

100

* Significant locations of operations: The headquarters and 11 main sites that are checked based on J-SOX internal control framework.

N/A

Sustainability Report 2020「English version」

35

Corporate
Philosophy

410-1

Corporate Profiles/
Financial Information/
Corporate History

Top Message

Foster Group CSRManagement

Environment

SocialGovernance

External
Recognition

Data
Table

Security personnel trained in human rights policies or procedures
Security personnel

LocationJapan

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

Overseas

All overseas sites

Total personnel

Percentage (%)

Trained personnel
3

3

100

197

179

91

* The above includes employees from third party organizations.

412-2

Employee training on human rights policies or procedures
LocationJapan

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

Overseas

All overseas sites

414-1

Employee training
Employee percentage (%)

Total hours (hours)
521

52

46,33888

New suppliers that were screened using social criteria

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

Location
Domestic
andoverseascompanies

All procurement sites

Percentage (%)
100

Percentage of replies received from new suppliers that agreed to CSR procurement based on the Foster’s Code of Conduct

418-1

Substantiated complaints concerning breaches of customer privacy and losses of customer data
Total number of substantiated complaints
received concerning breaches of customer privacy
Location

Domestic
andoverseascompanies

All the domestic and overseas companies

i. Complaints received
from outside parties
and substantiated by
the organization
0

ii. Complaints from
regulatory bodies

0

Total number ofidentified leaks, thefts,
or losses of customer
data

0

Sustainability Report 2020「English version」

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Corporate
Philosophy

Corporate Profiles/
Financial Information/
Corporate History

Top Message

Foster Group CSRManagement

Environment

SocialExternal
Recognition

Governance

Data
Table

GRI Content Index
GeneralDisclosures

GRI StandardNo.

ORGANIZATIONAL
PROFILE

102-1

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
-

102-3

Location of headquarters
Location of operations

102-4

Ethics and integrity

Governance

Page Number / URLGeneralDisclosures
Governance

GRI Standard
No.

Disclosure

Page Number / URL- Corporate governance guidelines (available
in Japanese)

102-25

Conflicts of interest

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

102-26

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

P5-9

Foster group CSR management

P3-4-

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

102-27

Collective knowledge of highest governance
body

P5-9

Foster group CSR management

P3-4-

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

102-28

Evaluating the highest governance body’s
performanceP10-13
P14-25
P26-30-

Environment
SocialGovernance Securities report (available in Japanese)

102-5

Ownership and legal form

P3-4-

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

102-6

Markets served

P3-4-

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

102-29Identifying and managing economic,
environmental, and social impacts

P5-9

Foster group CSR management

102-7

Scale of the organization

P3-4-

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

102-30Effectiveness of risk management processes

P5-9

Foster group CSR management

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

P5-9

Foster group CSR management

Information on employees and other workers

P3-4-

102-31

102-8

Review of economic, environmental, and social
topics102-9

Supply chain-

 Securities report (available in Japanese)

102-32Highest governance body’s role insustainability reporting

P5-9

Foster group CSR management102-10Significant changes to the organization andits supply chain-

 Securities report (available in Japanese)

102-33

Communicating critical concerns

P26-30Governance102-34Nature and total number of critical concerns-

Not applicable

102-35

Remuneration policies-

 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)

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

102-40

List of stakeholder groups

P6
P31

 General meeting of shareholders Financial result briefing“Materiality (Priority Issues)”“External Recognition”

102-41

Collective bargaining agreements-

 Securities report (available in Japanese)
Foster group CSR management
GovernanceFoster group CSR management
Governance102-11Strategy

Disclosure

Precautionary principle or approach

P10-13
P14-25
P26-30-

Environment
SocialGovernance Securities report (available in Japanese)

102-12External initiatives

P5-9
P8

Foster group CSR management
United Nations Global Compact

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 Creed Corporate Action Guidelines Code of conduct for staff

102-17

Mechanisms for advice and concerns about
ethics102-18Governance structure102-19

Stakeholder
engagement

Governance102-42

Identifying and selecting stakeholders

P5-9
P26-30- Corporate governance guidelines (available
in Japanese)

102-43

Approach to stakeholder engagement

P5-9
P26-30Delegating authority

P36-30-Governance Corporate governance guidelines (available
in Japanese)

102-44

Key topics and concerns raised

P5-9

Foster group CSR management

Executive-level responsibility for economic,
environmental, and social topics

102-45102-20P5-9

Foster group CSR management

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 CSR management102-21

Consulting stakeholders on economic,
environmental, and social topics

P5-9

102-47

List of material topics

P5-9

Foster group CSR management

Restatements of information-

No restatement of information

Composition of the highest governancebody and its committees-

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

102-48102-49Changes in reporting-

No significant changes in reporting

102-23Chair of the highest governance body- Securities report (available in Japanese)

P40

Provision of information regarding
sustainability

102-24

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

P40

Provision of information regarding
sustainability

102-22

P26-30

Foster group CSR management

Reporting practice102-50

Reporting period

102-51

Date of most recent report

Sustainability Report 2020「English version」

37

Corporate
Philosophy

GeneralDisclosures
Reporting practiceManagement
Approach
GRI 103:
Management
ApproachGRI Standard
No.
102-52

GRI 201: Economic
PerformanceGRI 202: Market
Presence

GRI 203: Indirect
Economic
Impacts

Disclosure

Page Number / URL
P40

Reporting cycle

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-

GRI Standard
No.

Disclosure

GRI content index
Not applicable

Page Number / URL

Environmental
TopicsGRI 207: Tax

GRI 301: Materials

GRI Standard
No.

SocialExternal
Recognition

Governance

Disclosure207-1

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

P32-36-

N/A (Information unavailable)

302-1

Energy consumption within the organization

302-2

Energy consumption outside of theorganization

The management approach and its
components

P5-9
P10-13
P14-25
P26-30

Foster group CSR management
Environment
SocialGovernance

302-3

Energy intensity

P32-36

Data table

103-2

302-4

Reduction of energy consumption

P32-36

Data table

P5-9
P10-13
P14-25
P26-30

Foster group CSR management
Environment
SocialGovernance

302-5

Reductions in energy requirements ofproducts and services

P12
P32-36“Environmentally Friendly Products”
Data table

303-1

Interactions with water as a shared resource

303-2

Management of water discharge-related
impacts

303-3

Water withdrawal

P32-36

Data table

303-4

Water discharge

P32-36

Data table

303-5

Water consumption

P32-36

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 (Scope 1) GHG emissions

P32-36

Data table

305-2

Energy indirect (Scope 2) GHG emissions

P32-36

Data table“Social Contribution”

305-3

Other indirect (Scope 3) GHG emissions

P32-36

Data table

Not applicable305-4

GHG emissions intensity

P32-36

Data table

305-5

Reduction of GHG emissions

P32-36305-6Emissions 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

P32-36

Data table

306-2

Waste by type and disposal method

P32-36

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)

GRI Standard
No.
201-1

Disclosure
Direct economic value generated anddistributed

Page Number / URL-

 Securities report (available in Japanese)
GRI 304: Biodiversity

201-2

Financial implications and other risks andopportunities due to climate change

P32-36

201-3

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

201-4

Financial assistance received fromgovernment-

Not applicable

Data table

202-1

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

P32-36

Data table202-2

Proportion of senior management hired fromthe local community

P32-36

Data table

Infrastructure investments and services
supported

P23-24

203-1
203-2

Significant indirect economic impacts

-

204-1

Proportion of spending on local suppliersP32-36

Data table

GRI 205:
Anti-corruption

205-1

Operations assessed for risks related tocorruption

P32-36

Data table205-2

Communication and training about anticorruption policies and proceduresP32-36

Data table

205-3

Confirmed incidents of corruption andactions taken-

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

-

206-1

Not applicableNot applicable

GRI 305: Emissions

GRI 306: Effluentsand Waste

P32-36

Data table

Foster group CSR management

GRI 303: Water andEffluents

Data
Table

Page Number / URL

P5-9

Management Approach

GRI 302: Energy

Environment

Explanation of the material topic and its
Boundary

GRI 204:
Procurement
Practices

GRI 206: Anticompetitive
Behavior

Foster Group CSRManagement

103-1

103-3

Economic Topics

Corporate Profiles/
Financial Information/
Corporate History

Top Message-

Data table
N/A (Information unavailable)

P11“Environmental Activities”

P11“Environmental Activities”

Data table

Sustainability Report 2020「English version」

38

Corporate
Philosophy

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

GRI Standard
No.

Corporate Profiles/
Financial Information/
Corporate History

Top Message

Disclosure

Page Number / URL

307-1

Non-compliance with environmental laws
and regulations

-

308-1

New suppliers that were screened using
environmental criteria

P32-36308-2

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.

GRI Standard
No.

Disclosure

401-1

New employee hires and employee turnoverP32-36

Data table401-2

Benefits provided to full-time employeesthat are not provided to temporary or parttime employees

P32-36

Data table

401-3

Parental leave

P32-36

Data table

402-1

Minimum notice periods regarding
operational changes

403-1

Occupational health and safety management
system

P21-22403-2

Hazard identification, risk assessment, andincident investigation

P21-22“Health and Safety”

403-3

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
P32-36“Health and Safety”
Data table

Page Number / URL-

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

Foster Group CSRManagement

Social Topics

Environment

GRI Standard
No.

Work-related ill healthP21-22
P32-36“Health and Safety”
Data table

404-1

Average hours of training per year per
employee

P32-36

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

P32-36

Data table

405-1

Diversity of governance bodies andemployees

P32-36

Data table

405-2

Ratio of basic salary and remuneration of
women to men

P32-36

Data table

External
Recognition

Governance

Disclosure

Data
Table

Page Number / URL

GRI 406: Nondiscrimination

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 thesequestions.

GRI 410: Security
Practices

410-1

Security personnel trained in human rights
policies or proceduresP32-36

GRI 411: Rights ofIndigenous Peoples

411-1

Incidents of violations involving rights ofindigenous peoples-

Not applicable

412-1

Operations that have been subject to humanrights reviews or impact assessments-

N/A (Information unavailable)

412-2

Employee training on human rights policies
or proceduresP32-36412-3

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

P32-36414-2

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

P32-36419-1

Non-compliance with laws and regulationsin the social and economic area-

GRI 408: Child LaborGRI 409: Forced orCompulsory LaborGRI 412: Human
Rights Assessment“Health and Safety”

403-10SocialGRI 413: Local
Communities

GRI 414: SupplierSocial Assessment

GRI 417: Marketingand Labeling

GRI 418: Customer
PrivacyGRI 419:
Socioeconomic
Compliance

Data table

Data table
N/A (Information unavailable)“Social Contribution”

Not applicable
Data table

Data table

Not applicable

Sustainability Report 2020「English version」

39

Corporate
Philosophy

Top Message

Corporate Profiles/
Financial Information/
Corporate History

Foster Group CSRManagement

Environment

SocialGovernance

External
Recognition

Data
Table

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 Groupand 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 that meet the needs of society such as the ten
principles of the United Nations Global Compact and RBA (Responsible Business Alliance), together with the system forappropriate disclosure of the decision-making processes and the soundness of PDCA and its operation. The information isdisclosed via our sustainability report and corporate website for communications.

Contents Reported in Sustainability Report 2020
• About this report
The “Sustainability Report 2020” (the Report 2020) was prepared to comprehensively report the Foster Group’s corporatesocial responsibility (CSR) activities during the fiscal year ending March 31, 2020 (fiscal 2019), for our stakeholders. With
regard to our CSR 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 CSR activities of the Foster Group, which consists of Foster
Electric Company, Limited, and its consolidated subsidiaries in Japan and overseas.
• The reporting period
The reporting period of the Report 2020 is from April 1, 2019, to March 31, 2020 (fiscal 2019). The Report also includes
statements concerning activities outside the reporting period, including those in fiscal 2020.
• 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 2020.
• Month of issue:
July 2020• Next issue of the Sustainability Report (planned):
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

Phone：+81-(0)42-546-2311

Fax：+81-(0)42-546-2317

Sustainability Report 2020「English version」

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Corporate
Philosophy

Top Message

Corporate Profiles/
Financial Information/
Corporate History

Foster Group CSRManagement

Environment

SocialGovernance

External
Recognition

Data
Table

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 our globallyexpanding solution of sound and vibration in our key automotive business.
It portrays our vision “To make contributions for future society throughacoustics” in the change of technology surrounding the world, with thescattered image of our automotive speakers, vibration actuators, our own
brand FOSTEX speakers and headsets.
July 2020 Edited in Japan

Sustainability Report 2020「English version」