Environmental andSocial ReportManagement Philosophy
In order to make the Corporation more creative and likeable...
We create a rich, pleasant environment for living.
We provide our products and services with our customer’s satisfaction as the ﬁrst priority.
We carry out our corporate activities toward the future.
We take good care of our employees and aim to make the Corporation fair and open.

Code of Conduct
Always have pioneering spirit without satisfaction
with the status quo
Act aggressively without worrying about failure
Constantly improve yourself with aspiration
Demonstrate great creativity and challenge yourself in this era of change
Focus on living in harmony with nature and actively take action to contribute to society
Behave with pride and conﬁdence as a player to promote the music culture

Since the foundation of the company, we have been continuing our business activities with the
purpose of manufacturing quality instruments and making contributions to the music culture. In
today’s world where society and industrial structure are dramatically changing, Kawai strives tocontinue our corporate activities pursuant to the management philosophy and the code of conducts
described above in order to further contribute in wider areas to people’s lives and culture.

1

Editorial policy

Information in this report“Environmental and Social Report” provides the information on
the Kawai Group’s environmental activities as well as its view ofcorporate social responsibility and the measures of corporate
governance.
Company outline is described on page 5.
For detailed information on the business of Kawai Group,
please refer to the company website.

Intended readersThis report is intended for various stakeholders, including customers, partner companies, employees, shareholders and investors, local residents and NGOs, administrative organizations andinternational organizations.

About 2021 report
Principles for each item are stated so that the Kawai Group’s activities can be easily understood by all readers.

Period covered by the report
The scope of this report is mainly the FY2020 (from April 2020 toMarch 2021) and the latest information after April 2021 is also
added for some important items.
For some items and ﬁgures in this report, existing data was
modiﬁed as a result of review of the aggregation method.

Organizations subject to report• Kawai Musical Instruments Manufacturing Co., Ltd., Headquarters and Ryuyo Factory• Kawai Precision Metals Co., Ltd.
• Kawai Casting Co., Ltd.
• Kawai Hyper Wood Co., Ltd.
• Kawai Acoustic System Co., Ltd

Contents
Top message ……………………………………………………………………………………… 3
Company outline of Kawai Group
Company outline and main business of Kawai Group………………… 5
Company history …………………………………………………………………………… 6
Overview and progress of the 6th Medium-term management plan
“Resonate 2021” ………………………………………………………………………………… 7

Environmental activities
Global Environment Charter / Environment principles ……………… 9Green procurement guideline /Wood materials procurement guideline …………………………………… 10
Goals and achievements of environmental load reduction …… 11
Waste reduction activities ………………………………………………………… 12
Environment management system /“Kawai Forest” the tree planting activities…………………………………… 13
Material balance ………………………………………………………………………… 14

Social activities
Contributions towards musical culture promotion /Supporting various musical organizations ……………………………… 15
Diffusing musical culture in China /Diffusing musical culture in developing countries …………………… 16
Education business …………………………………………………………………… 17
Sport community ……………………………………………………………………… 19
Implementing activities to promote women’s participation …… 20
Employing people with disabilities /Developing human resources …………………………………………………… 21

Corporate governance activities
Basic principles of corporate governance ………………………………… 22
Corporate governance Structure / Internal control system … 23
Risk management structure ……………………………………………………… 24
Reference material
List of environmental loads by site …………………………………………… 25
Third party comment ………………………………………………………………… 26

Measures to contribute to SDGs
“The 2030 Agenda for Sustainable Development” was adopted in the “United Nations Sustainable Development Summit”
held in September 2015. The SDGs (Sustainable Development
Goals) stated in this agenda consist of 17 goals and 169 targets which are aimed to be accomplished by 2030.
Activities of the Group related to the SDGs are marked
with a relevant icon of these goals in this report.
Kawai Group is committed to making contributions to accomplishing these goals through its business activities.

2Top message
Setting out the long-term vision “Establishing a 100-year brand”,
we endeavor to improve our corporate value and brand quality,and promote sustainable growth aiming at continuing evolution
for 100 years and beyond.

Chairman, President & CEO

Immediately after the beginning of 2020, the COVID-19 pandemic spread rapidly and wildly around the world, and for more than one year, it
has still been continuing to be a great threat in Japan and other countries in every corner of the world. I would like to extend my sincere
condolences at the loss of life from COVID-19 and my deepest sympathy to the families of those who have suffered the disease. I would
also like to pay my respectV and express appreciation from the bottom of my heart to medical service workers who are committed to thetreatment and prevention of COVID-19.

Implementation of the medium-term management plan “Resonate 2021”
Under a long-term vision “Establishing a 100-year brand” set by
the Kawai Group, we have been striving to achieve continuous
growth, centering on piano manufacturing which is the original
business of Kawai and has been inherited to this day.
This year is the third and the ﬁnal year of the 6th medium-term
management plan “Resonate 2021” (from FY2019 to FY2021). In“Resonate 2021”, we are striving to enhance our corporate value
by reinforcing our core strengths of “sales”, “products and services”, “production” and “organization” to further strengthen theplatform for growth aiming at “Establishing a 100-year brand”.
Looking back on FY2020, although sales of acoustic pianos
were greatly affected by government orders in many countries
including lockdown restrictions and the suspension of operationof musical instrument shops, sales of hybrid pianos and digital
pianos were robust in Japan, Europe and North America due to astrong demand driven by the “stay at home” lifestyle. Operation ofmusic schools and physical-training schools in Japan suffered asigniﬁcant effect because we were not able to invite pupils at the
new semester in the previous year when schools were closed due
to great concerns about COVID-19. As a result of company-wide
efforts to retrieve pupils, however, the number of pupils is recovering. The business overseas is also affected by COVID-19, but
we are working on providing improved online lessons of music
schools in China and Southeast Asian countries.
With respect to products and services, even under the circumstances of great restrictions on business operation, we launchedvarious products including new digital piano models “CA59” and3“CA49” , and a grand piano “GL-10SE” in commemoration of the40th anniversary of completion of Kawai’s Ryuyo acoustic piano
factory. Additionally, in the situation where many concerts arecancelled or postponed due to the effect of COVID-19, we started“Streaming+”, an online distribution service of concerts because
we wish to encourage people to feel happy and positive with thehelp of music.
For production, R&D system and production system for bothacoustic and digital pianos are currently being put in place in andoutside Japan. Through collaboration of both systems, businesses in Japan, China and Indonesia are connected organically andcan function efficiently in collaboration with each other, whichleads to creation of attractive products, particularly digital pianos,that have high sales potentials.
Finally, in relation to organization, in this age where the future is unforeseen, it is important to develop human resourcesthat guarantee the long-term future of Kawai. We have been addressing various issues including growing younger generations,active participation of female workers, promotion of diversity tobuild a workplace in which everyone can work to their fullest capacity, and work-life balance.
To realize ongoing evolution for 100 years and beyond, weare committed to building up the core strengths of our businesses
even further, aiming at the No.1 piano manufacturer in the world,
and at the same time to increase our corporate value and brandstrength through activities that contribute to music culture.

2027 - the 100th anniversary

100-year brand
2025–2027
The 8th Medium-term Management Plan:
Evolving toward the future

Resonate 2021

2022–2024
The 7th Medium-term Management Plan: Acceleration of growth

Resonate 20182019–2021
The 6th Medium-term Management Plan: Enhancing business foundation for further growth

2016–2018
The 5th Medium-term Management Plan: Improvement of proﬁtability and achieving operating income margin of 5% (plan)

Positioning of the long-term vision “Establishing a 100-year brand”
and the 6th Medium-term Management Plan “Resonate 2021”

Development of human resources
In the women’s participation promotion project “Love it!” set out
in 2019, we have been encouraging women to actively engage inbusiness activities. In August 2020, “Ryuyo Factory Women Activity Team” was formed at Ryuyo Factory for the purpose of creating
a better factory from the women’s point of view. Opportunities
for women workers are gradually expanding including this team.
Our company was recognized for these activities and was
granted “Eruboshi Certiﬁcation” in January 2021 as a proof of acompany offering opportunities for females workers. “Eruboshi
Certiﬁcation” is a system that the Minister of Health, Labour andWelfare certiﬁes excellent companies in taking measures to promote female participation.
Further, as we recognize that physical and mental well-beingof all the people working in the Kawai Group and their families
constitutes the basis of our management and is valuable asset of
the Group and companies, we endeavor to increase heath of ouremployees and their families. These efforts were recognized andthe Kawai Group was selected as “Certiﬁed Health & Productivity
Management Outstanding Organization 2021” consecutively fromthe previous year in the award jointly held by the Ministry of Economy, Trade and Industry and Nippon Kenko Kaigi.

Environmental activities
In creating a piano, a wide range of natural materials are used
including various kinds of wood produced in many different partsof the world and felt made of wool. Keeping the state of naturalenvironment as bountiful as ever is an imperative requirement for
our Group, to realize sustainable development as a company that
operates its business by receiving the beneﬁts of natural resources. In accordance with this fundamental policy, in 1994 we set

out “Global environment charter” and “environment policy” andestablished a company-wide organization “Kawai Global Environment Committee” to implement such policy.
Further, our Ryuyo Factory obtained the certiﬁcate of the Environment Management System ISO14001 in 1997 for the ﬁrst
time in the industry to implement business activities, taking into
consideration the preservation of global environment. Since then,our Group has introduced ISO14001 to main production facilities
in Japan, China and Indonesia. We focus our efforts on the important issues related to our business activities with due considerations to preservation of the environment, such as responsible
procurement pursuant to the policy including “wood material procurement guideline”, energy conservation through improvementof resource efficiency, reduction of CO2 emission and waste, andimprovement of source cycle through recycling. In Indonesia, wehave been engaging in the “Kawai Forest” tree planting activity
since 2007 for the purpose of CO2 absorption, reforestation of deforested areas and securing wood materials for the future.
The international community has clearly shifted toward realizing a sustainable society as the Paris Agreement took effectafter the adoption of SDGs (Sustainable Development Goals) in2015. Measures against COVID-19 are taken, including vaccination being started in many countries, and there are some signs
that the situation is improving, but it is expected to take considerable time until the pandemic is completely under control. Under
these circumstances of changing society and business environment, Kawai Group is committed to making contributions to realizing sustainable society through the efforts to address various
ESG issues, aiming at becoming a company trusted by you all.
As always, we are incredibly grateful for your ongoing support.

4Company outline and main business of Kawai Group
Company outline

Management index

Company Name: Kawai Musical Instruments Manufacturing Co., Ltd.
Company Headquarters: 200 Terajima-cho Naka-ku, Hamamatsu
City, Shizuoka Prefecture
Established: August 9th, 1927
Reorganized: May 15, 1951
Company President: Hirotaka Kawai, Chairman, President & CEO
Capital: 7,122 million JPY (as of end of March 2021)

FY2018
Sales(Million yen)
No. ofemployees

FY2019FY2020Non-consolidated

51,52449,481

48,487

Consolidated

72,37671,302

67,520Non-consolidated

1,269

1,282

1,302

Consolidated

2,813

2,839

2,868

Sales (consolidated)

Million yen

80,000

Environmental activities

Ordinary proﬁt (consolidated)

Million yen

5,000
60,000
Other business

40,000Raw material
processing business
Musical instruments
and education related
business

20,000

4,000
3,000
2,000
1,000
0

0
2016

2017

2018

2019

2016

2020 FY

2017

2018

2019

2020 FYMusical instruments and education related businessSocial activities
Corporate governance activities
Reference material
5

Selling pianos, electronic instruments, wind, string and percussion instruments, accessories of instruments and instrument toys, andproviding services of instrument technical service and repair
Operation of music school and gymnastic school, selling learning materials, and manufacturing and selling musical scores and music
instruction software● Domestic sales
Kawai Musical Instruments Manufacturing Co., Ltd.
Zen-On Music Company Limited● Overseas sales
Kawai America Corporation
Kawai Europa GmbH
Kawai Canada Music
Kawai Australia Pty. Ltd.
PT. Kawai Music Indonesia
Kawai Musical Instruments (China) Co., Ltd.
Kawai Trading (Shanghai) Co., Ltd.
Kawai UK Ltd.
Kawai France SAS
Kawai Piano (Russia) LLC● Instrument technical service and repair
Kawai Musical Instruments Manufacturing Co., Ltd.
● Domestic instrument manufacturing
Kawai Musical Instruments Manufacturing Co., Ltd.
Zen-On Music Company Limited● Overseas instrument manufacturing
PT. Kawai Indonesia
Kawai Musical Instruments (Ningbo) Co., Ltd.
Shanghai Kawai Emi Co., Ltd.
● Domestic music schools and physical-training schools operation
Kawai Musical Instruments Manufacturing Co., Ltd.
● Overseas music schools operation
PT. Kawai Music School Indonesia● Other
Kawai Tomo-no-Kai

Material processing business

Other business

Metal material processing for electric and electronic parts,
material processing for automobile parts, manufacturing andselling pig iron and castings, manufacturing and selling soundproof chamber and acoustic components● Information-related business, ﬁnancial business, insurance
agent business and others
Kawai Business Software Co., Ltd.
Kawai Assist Co., Ltd.

● Manufacturing deformed rolled metal parts
Kawai Precision Metals Co., Ltd.
● Manufacturing materials for automobile parts
Kawai Hyper Wood Co., Ltd.
● Manufacturing and selling pig iron castings
Kawai Casting Co., Ltd.
● Manufacturing and selling sound-proof chamber andacoustic components
Kawai Acoustic System Co., Ltd

Company history

Company name changed to Kawai Musical Instruments
Manufacturing Company.

1935

Corporate structure expanded to partnership basis.

1951

Company reorganized into a joint-stock company, Kawai
Musical Instruments Manufacturing Co., Ltd.

1955

Shigeru Kawai appointed president.

1956

Kawai Music School established.

1961

Maisaka Factory completed as a main assembly plant.
Kawai Piano Technicians School (current Kawai Academy ofMusic) opened.

1963

Kawai America Corporation established in U.S.A.

1967

Physical training program, Kawai Gymnastic School
established.

1980

Kawai Precision Metals Co., Ltd. of metal rolling established.
Ryuyo Factory established as grand pianos factory exclusively.

1985

Kawai Business Software Co., Ltd. established.

1989

Hirotaka Kawai appointed president.

1994

Global Environment Committee, a company-wide organization
to promote environmental activities established.

1996

Constituted the new Business Principal and Code of Conduct.

1997

Hamamatsu office of Kawai Precision Metals Co., Ltd. receives
ISO9002 certiﬁcation.
Ryuyo Facility receives ISO14001 certiﬁcation which is theﬁrst in the instrument industry.

1998

Kawai Hyper Wood Co., Ltd. established.

1999“Shigeru Kawai” series of luxury grand piano instruments
launched.

2001

PT. Kawai Indonesia established in Indonesia.
Luxury full concert piano “SK-EX” introduced.

2002

Kawai Trading (Shanghai) Co. Ltd. established in Shanghai,
China.

2003
2004

In 1927, Koichi Kawai established
the Kawai Musical Instruments
Research Laboratory with seven othertechnicians.

2009

Domestic piano manufacturing processes integrated into
Ryuyo Factory.
PT. Kawai Indonesia’s Factories No.1 and No.2 received
ISO9001 certiﬁcation.

2011

PT. Kawai Music Indonesia established in Indonesia.
PT. Kawai Indonesia’s Factories No.1 and No.2 received
ISO14001 certiﬁcation.

2012

Hamamatsu office of Kawai Precision Metals Co., Ltd. received
ISO9001 certiﬁcation.

Shanghai Kawai Emi Co., Ltd. established in China.
Kawai Casting Co., Ltd. established in Hakui city, Ishikawa
prefecture.
Kawai Musical Instruments (Ningbo) Co., Ltd. received
ISO14001 certiﬁcation.

2013

Kawai Precision Metals Co., Ltd. expanded the registration of
ISO9001 certiﬁcation to the whole company.
Kawai Musical Instruments (Ningbo) Co., Ltd. established.

Shanghai Kawai Emi Co., Ltd. received ISO9001
certiﬁcation.

2014

Zen-On Music Company Limited acquired as subsidiarycompany.
Kawai Piano (Russia) LLC established in Moscow, Russia.

2015

First overseas directly managed showroom opened in
Houston, Texas, U.S.A.
Kawai Precision Metals Co., Ltd. received ISO14001
certiﬁcation.
“Kawai Forest” the tree planting activities for Tohoku
reconstruction support started in Higashi-matsushima city.

2016“Basic Agreement on Piano Tecnical Service Business”
concluded with China Musical Instrument Association.
Kawai Musical Instruments (China) Co., Ltd. established in
Beijing, China.
Kawai Hyper Wood Co., Ltd. received ISO14001
certiﬁcation.

2017

The 1st Shigeru Kawai International Piano Competition
held.
Second overseas directly managed showroom opened in
Dallas, Texas, U.S.A.
Kawai Acoustic System Co., Ltd. made Declaration ofConformity with ISO14001.
PT. Kawai Indonesia’s Factory No.3 received ISO14001
certiﬁcation.

2018

Kawai France SAS established in Courbevoie, France.
Third overseas directly managed showroom opened in
Hamburg, Germany.

2019“Shigeru Kawai series” marked 20th anniversary.

2020

Ryuyo Factory marked 40th anniversary.
Shanghai Kawai Emi Co., Ltd. received ISO14001 certiﬁcation.

2005

Ryuyo Factory receives ISO9001 certiﬁcation.

2007

First Kawai Music School in China established in Shanghai.
“Kawai Forest” the tree planting activities in Indonesia started.

In 1955, Shigeru Kawai was appointed
president, inheriting Koichi’s ambition
to build the world’s ﬁnest piano.

Reference material

Kawai Musical Instruments (Ningbo) Co., Ltd. received
ISO9001 certiﬁcation.
PT. Kawai Indonesia’s Factory No.3 received ISO9001
certiﬁcation.

Corporate governance activities

2008

Social activities

1929

Environmental activities

Koichi Kawai established the Kawai Musical Instruments
Research Laboratory.
Started manufacturing and selling pianos.

Company outline

1927

6

Overview and progress of the 6th Medium-termManagement Plan “Resonate 2021”
Company outline
Environmental activities
Social activities
Corporate governance activities
Reference material
7Long-term vision
Establishing a 100-year brandAspiring to continuous development for 100 years and beyond, we strive to increase our corporate value and brand quality
and realize constant growth by reinforcing the strength of each business, pursuing and increasing customer satisfaction andcontributing to the development of music culture, with the aim of becoming the world’s No.1 brand of piano manufacture whichis the core business continuing right from the foundation.

The 6th Medium-term Management Plan “Resonate 2021” (FY2019 to FY2021)
Basic principles
Kawai Group’s mission is to provide many people with great impression through programs of learning piano and other instruments
and musical education, thus contributing to creating comfortable living environment for all, under the following management philosophy with the aim of becoming a favored company with great creativity; We create rich and comfortable living environment; We provide
goods and services giving top priority to customer satisfaction; We carry out corporate activities in view of new age; and We respect
our employees and become an open company. In the 6th Medium-term Management Plan “Resonate 2021” (“Resonate” means “reverberating, resounding” and “producing consonance”) starting from FY2019, to the end of establishing a 100-year brand, we strive toenhance Kawai brand quality by pursuing in-depth “sales ability”, “product and service strength”, “production power” and “organizational strength”, address tasks of increasing the proﬁtability of musical instrument education as the core business and strengthening
the platform for growth, and work to increase corporate value.

Prioritized strategies
To increase proﬁtability of musical instrument education business and expand the business, strengths of different functions are built
up and combined to achieve the growth of Kawai.

(1) Enhancing sales ability
In matured market, we address reinforcement of sales activities for high-value-added products including the ﬂagship model “Shigeru
Kawai” and hybrid products to ensure stable growth and an increase of proﬁtability. In addition, as the measures of making the sales
network stronger, we focus in particular on increasing sales at directly managed shops in the U.S. and Germany, and beeﬁng up theactivities of sales companies in France. In Japan, we work on establishment of a sales structure that is integrated with four functions(direct sales, technical service, musical education and wholesale/instrument shops), reinforcement of sales platform using CRM (customer relationship management system), renewal of ﬂagship shop and intensiﬁcation of the operation in the Tokyo metropolitan area.
In Chinese market, we expand our business through establishing stronger collaborations with partner companies to increase added
value of the value chain and operate music school business and technical service business also in collaboration with such partners.
Additionally, we actively pursue sales increase in the Southeast Asian region and promote market development in the Central andSouth America, the Middle East, Africa and other regions.

(2) Enhancing the competitiveness and services
We pursue in depth the quality and strength of products including “Shigeru Kawai” through ongoing research at a level of raw material
and basic development and seek to obtain customer satisfaction. For three years from 2019, in particular, we emphasize intensiﬁcation of the development of hybrid products and digital piano with special quality of touch and sound, and incorporate planning anddevelopment functions into manufacturing factories in reviewing the structure so as to ensure development of products to meet themarket needs. With these efforts, we enhance the marketing of products for China and drive product development to increase ourshare in the markets in which the Group’s share is small. At the same time, to intensify Kawai brand marketing, an integrated structure will be established to centrally manage different functions from product planning, designing to sales promotion. In addition, we
strengthen artist relations and development of MPA (Master Piano Artisan: this internal qualiﬁcation is granted only to highly skilled
piano technicians), and enhance after-sale service system to further increase customer satisfaction.

(3) Enhancing productivity
We implement reinforcement of the global and ﬂexible production structure and priority equipment investment to further improve
QCD (Quality, Cost and Delivery).
With regard to piano, we operate the manufacturing in such a manner that is worthy as a 100-year brand on a global basis mainly
at Ryuyo Factory as Mother factory by leveraging the unique techniques of Kawai that have been developed over time and handed
down to the next generation. In addition, we work on reformation and building up of capacity of the production line of “Shigeru Kawai”
which shows good sale, as well as strategic cost control and optimum production by introducing a new production system.
As for digital piano, we enhance the production system so as to be able to deal with sales increase in China and around the world,and make efforts to reduce costs as well on a continual basis, including a shift to in-house production process.

Production
power

Organizational
strength

Product andservice strength

Sales ability

Consolidated business result index
Musical instruments and education related business

Material processing business
Sales in material processing business decreased while operating proﬁt increased as a result of cost reduction, etc. because orders
received for semiconductor-related parts and automobile parts declined continuously to the 2nd quarter as a result of production
adjustments made by suppliers due to COVID-19, although the business showed some recovery from the 3rd quarter.

Social activities

In the musical instruments and education related business, sales of instruments were signiﬁcantly affected by a decrease in pianos
sales due to lockdown restrictions and the suspension of operation of music instruments shops pursuant to the order of government
in many countries. In the 2nd quarter and after, however, sales made a strong recovery, with relaxation of regulations and changesof lifestyle. Sales of digital and hybrid pianos maintained robust performance against the background of strong demand driven by“stay at home” lifestyles around the world. Especially a high-end model “CA series” which enables reproduction of feeling like playing
a grand piano, and “NV series”, a hybrid piano model which incorporates an acoustic piano action showed strong sales. On the other
hand, domestic operation of music schools and gymnastic schools was signiﬁcantly affected because classes were called off in the
1st quarter, although it is currently on a track to recovery. As a result, sales decreased while operating proﬁt increased because ofincreased sales of high-value-added products and cost reduction.

Environmental activities

We address enhancement of our human capital for the Kawai Group to ﬂourish on a medium- tolong-term basis.
• Implementation of “healthy management” to enable employees to work lively• Education and skill development through enhancement of education and training programs
designed for each class• Provision of support for striking a balance between the work that is based on women’s power
and their child rearing or family care, and promotion of work style reform• Implementation of global talents development and innovation of human resource management system
Furthermore, to reinforce our management foundation, we work on a continual basis onbuilding a horizontal organization structure and optimization of management process, company-wide productivity increase and improvement of routine tasks efficiency.

Company outline(4) Enhancing organizational ability(Unit: million yen)
FY March 2020
ResultFY March 2021
Plan (*2)

FY March 2021
ResultFY March 2022
Plan (*2)

FY March 2022
Tentative plan (*3)

Sales

73,00071,30274,00067,52076,00077,000Operating proﬁt

3,100

2,960

3,600

3,492

4,200

4,000

Recurring proﬁt

3,100

3,118

3,600

4,002

4,200

4,100

Current term net proﬁt (*1)

1,900

1,545

2,250

2,579

2,650

2,600

Operating proﬁt ratio

4.2%

4.2%

4.8%

5.2%

5.5%

5.2%

ROE

7.5%

6.1%

8.3%

9.7%

9.2%

9.0%

(*1) Current term net proﬁt attributable to owners of parent company(*2) Planned ﬁgures as of March 2019 (Exchange rate assumed for plan: 110 JPY/US$, 125 JPY/euro, 16 JPY/yuan)(*3) Planned ﬁgures as of May 2021 (Exchange rate assumed for plan: 108 JPY/US$, 128 JPY/euro, 16.5 JPY/yuan)

Enhance the corporate value Addressing ESG

Corporate governance activities

FY March 2020
Plan (*2)

Kawai Group address the following activities to contribute to creating a sustainable society.
Pursuant to the “Global Environment Charter” established by Kawai, the Group-wide active involvement
as a corporate citizen of the globe in activities to protect the environment and resources, for example,
priority procurement of materials, parts and products that have lower environmental load according to“environment principles” and “green procurement guideline” and the tree planting activities.

S … Social

Activities to contribute to the music culture as a musical instrument manufacturer by way of fosteringand providing support for young musicians through, for example, the Shigeru Kawai International Piano
Competition, and promoting dissemination of music education.

G … Governance

Aiming at establishing a 100-year brand and sustainable growth, activities to ensure an effective governance system to realize sound business management.

Reference material

E … Environment8

Implementing environment preservation activities
based on the Global Environment Charter
Company outline

Global Environment Charter
Kawai Group understands that comprehensive and ongoing efforts are necessary to ensure that the wonderful global environment
should be handed down to future generations.
We have established our “Global Environment Charter” in 1994 to pursue the right way for us to be able to earn trust and sympathy of society through provision of quality products of ours that are friendly to people and the global environment while striving topreserve the environment as a good corporate citizen of the world.

Global Environment Charter
Environmental activities

Aiming to become a company friendly to the globe and people< Basic Philosophy >< Code of Conduct >Setting a motto of “great impression manufacturing industry”,
we, as a global citizen, protect the environment and resources as well as endeavor to realize true richness of mind andsociety.
We are also committed to behave from a global standpoint
and become a company friendly to the global environment.

1. We establish good relationships between people and sound invarious busines ﬁelds in the music culture industry.

Create great humanity and comfortable living environment

4. We aim at recycling and reducing the amount of waste generated
from the stage of R&D and design of products.

Create excellent research, technology and products

Social activities

Create environment-friendly production, distribution andsales activities

2. We evaluate the impact on the environment using a scientiﬁcmethod in various aspects and take necessary countermeasures
to preserve the environment and protect people’s health.
3. We promote effective use of resources and energy conservation.

5. In response to requests in and outside Japan with regard to theenvironment preservation activities, we will be actively involved
for the purpose of living in harmony with local communities in theimplementation of measures of environmental protection.

Environment principles
Kawai Global Environment Committee established “Environment Principles” based on the “Global Environment Charter”.
The whole company is committed to the promotion of <discovery of useful environmental aspects>, <prevention of global warming>,<cyclic use of resources>,<effective use of resources> and <green procurement>.

Corporate governance activities
Reference material
9

Environment principles
We implement our business activities in musical instruments manufacturing and various other businesses, taking into accounttheir impact on the environment, and we are committed to ongoing improvements for preservation of the global environment
and prevention of pollution.
1. We set our objectives to carry out reduction of environmental load and discovery of useful environmental aspects using theenvironment management system. At the same time we review the objectives on a regular basis according to the expectationfrom society and appropriate scale.
(1) Work on “provision of products and services” and “development of technology”, taking into account the expectation fromsociety and environmental load.
(2) Address “prevention of global warming”, “cyclic use of resources” and “effective use of resources” in many different divisions including development, production, distribution, sales and service.
2. Procure and purchase materials, parts and products that have less environmental load by priority whenever such resources
are required. (Green procurement)
3. Comply with laws and regulations in relation to the environment and set self-standards as well, taking into consideration
other requirements to improve the environment management to a higher level.
4. Raise all employees’ awareness through the environment education and enlighten and support them so that each employee
can have a wider view on society and be involved in voluntary contributions in day-to-day business and daily life.
5. To achieve this Environment Principles, establish an environment management organization led by the officer in charge ofenvironment management serving as a general manager, put its operation system in place, and clearly deﬁne the goal, plan,measures and responsibilities in the organization in order to perform the environment preservation activities.

Implementing procurement of raw materials andresources that have less environmental load
Kawai Group is actively promoting the Group-wide implementation of green procurement in which those materials, parts and productsthat have less environmental load should be procured or purchased by priority whenever such resources are required in accordancewith the “Environment principles” established by Kawai Global Environment Committee.
We implement green procurement in accordance with the basic principle of green purchasing method and green purchasing
network (GPN) to decrease the total environmental load, and engage actively and continuously in the activity of contributions to preservation of biodiversity and establishing a recycle-based society.

< Basic Principles of green procurement >(1) Fully reviewing the necessity of procurement,(2) taking into consideration the environmental
aspect in addition to quality and price, those
products and services that have lesser environmental load should be purchased(3) by priority from such suppliers that are making efforts to reduce environmental load.

Environmental activities

The green procurement guideline applies to all goods and services to be
procured by Kawai Group.
In addition to compliance with laws, standards set by related organizations and internal standards which is essential, it is also prescribed as
the procurement standards that environment-friendly measures should betaken in all phases from natural resources preservation to resource savings,
energy conservation, disposal and recycling.
Consideration items for selecting suppliers are also set out, including state of environment management, measures of resource savings andenergy conservation, and disclosure of environmental information. All ourpartner companies are requested by a purchasing division to follow thesestandards.
For more information on the green procurement guideline, please referto the following website:

Company outline

Green procurement guideline

https://www2.kawai.co.jp/company/activity/pdf/kg_20040130.pdf

We understand that wood materials are important raw materials for manufacturing piano and other musical instruments. We stipulated the Kawai principles on sustainable wood materials procurement.

< Basic Philosophy >Kawai implements green procurement of woodin which we value and take good care of trees
and use effectively wood materials that are
sustainable resource we are receiving fromprotected and managed forests.

Social activities

Wood materials procurement guideline< Basic Principles >Environment management organization

Environment management organization chart

President

Global Environment Committee
Chairman: Officer in charge ofenvironment management

Specialized working group

Office: General affairs division
CS environment office

Reference material

Global Environment Committee was established in 1994
as an environment management organization led by theofficer in charge of environment management serving
as chairman of the committee. The committee has since
been engaged in the activities by setting out the company-wide environment principles and goals in relation to
the environment preservation.
In addition, specialized working group meetings areheld every other month and the progress of environmental management goals is reported on each website andwe also exchange information on our activities.

Corporate governance activities

1. Kawai procures wood materials by priority that are produced in the forests under the sustainable management.
2. In wood materials procurement, Kawai takes into account the environment management measures to be taken and compliance with related
laws to preserve, protect and regrowth forests.
3. Kawai promotes appropriate and efficient utilization of procured woodmaterials.
4. Kawai procures products produced using recycled materials by priority.
5. Kawai procures forest products, etc. that are certiﬁed by the forest certiﬁcation system by priority.

Each website
Environment management organization

10

Implementing environmental load reduction andresources recycling activities
Company outline

Goals and achievements of environmental load reduction
Global Environment Committee addresses the reduction of environmental load for such purposes as “prevention of global warming”
and “resources recycling and effective use of resources” under the “Global Environment Charter” and “Environment principles”.
The committee has set the goal for three years from FY2019 to FY2021 to reduce CO2 emissions and amount of waste per unit ofsales by 1% year on year from the level of FY2018 as the reference. In FY2020, we worked accordingly to achieve the reduction of bothby 2% from those in FY2018 and the results are shown in the table below. CO2 emissions per unit of sales was reduced by 4.8% andamount of waste per unit of sales was reduced by 12.0% from the level of FY2018, both achieving the goal.
Successful reduction of amount of waste was largely owing to a reduction in defective fraction, by reviewing the production
process and the reduction of slag generated as a result of the streamlining of production and processes implemented by the castingproduction division.

Environmental activities

FY
2016

2018
(Reference)

2017

Index

2020

Increase/decrease

Evaluation

CO2 emissions intensity(kg-CO2/million yen)

341

311

292

279

278

−4.8%

Energy amount intensity(MJ/million yen)

6,710

6,201

5,891

5,655

5,636

−4.3%

Amount of waste (total volume)
(ton)

2,242

1,976

2,058

1,869

1,689

−17.9%

Amount of waste intensity(kg/million yen)

33.7

27.9

28.4

26.2

25.0

−12.0%

Prevention of
global warming

Effective use ofresources

2019

Evaluation: Achieved: Not achieved

Social activities

Global warming prevention activities and energy conservation act response measures
Kawai Group regards the initiatives of global warming prevention as important item of its environment management and the Groupis promoting the reduction of CO2 emissions caused by using energy through implementation of the energy conservation measuresdescribed below.

CO2 emissions reduction activities● Introducing plant facilities with due considerations to energy conservation ● Replacing existing lights with LED lighting systems● Reviewing the use of renewable energies ● Performing an energy conservation evaluation regularly with an electric company● Launching “Cool Biz” and “Warm Biz” campaigns in office

Corporate governance activities

Kawai Group’s total CO2 emissions in Japan in FY2020 was reduced by 36% from the level of FY1990, the reference year of the Kyoto
Protocol. The Energy Conservation Act (or the Act on the Rational Use of Energy) provides for an obligation of a business operator who
uses a certain amount of energy or more (speciﬁed operator) to carry out energy management to rationalize energy use, and requires
such operator to report on their actual amount of energy used and submit a medium- to long-term energy conservation plan. In Kawai
Group, Kawai Musical Instruments Manufacturing Co., Ltd., Kawai Precision Metals Co., Ltd. and Kawai Casting Co., Ltd. are the speciﬁed operators, and Ryuyo Factory of piano manufacturing, the Headquarters/Hamamatsu factory of Kawai Precision Metals Co., Ltd. ofmetal working and three factories of Kawai Casting Co., Ltd. iron casting facility are speciﬁed as Class 2 energy management factory.
In FY2020, Kawai Musical Instruments Manufacturing Co., Ltd. and Kawai Precision Metals Co., Ltd. received Class S* evaluation as
an excellent operator according to the operator evaluation system by classiﬁcation that is provided for in the Energy Conservation Act.
(*: Class of operator who achieved the goal of reducing 5-year average of energy consumption intensity by 1% or more year on year)
A lot of production facilities including those overseas have already introduced ISO14001 (Environmental Management System)
and will continue to address the issue of reduction of energy use and CO2 emissions from a global standpoint.

Reference material

ton-CO2

CO2 emissions of domestic offices

CO2 emissions ofoverseas production facilities

ton-CO2

25,000

3,500
3,000

20,0002,500
15,0002,000

10,000

1,500
1,000

5,000

500
0
2016

11

2017

2018

2019

2020 FY

0
2016

2017

2018

2019

2020 FY

ton
2,500

Amount of industrial waste
and recycling ratio
100%

Environmental activities

We are working on the reduction of waste, understanding that our important mission is to reduce the amount of waste and promoteresources recycling through recycling of waste.
Kawai Group’s amount of waste once increased to 3,203 ton because a large amount of slag was generated as industrial wastefrom cast production by Kawai Casting Co., Ltd. engaged in piano frame manufacturing which came on board as a member of theGroup in FY2012.
Thereafter, Kawai Casting Co., Ltd. took the measures to streamline its production lines and improve production efficiency. As aresult, the amount of industrial waste by Kawai Group was reduced to 1,689 ton in FY2020, down 47.3% from the level of FY2012 andalso achieving a reduction by 17.9% from the level of FY2018, the reference year of the three-year plan.
Kawai Group’s overall waste recycling ratio was also greatly affected by a low recycling ratio at Kawai Casting Co., Ltd. at ﬁrst,
but the measure of reusing slag as roadbed material performed by Kawai Casting Co., Ltd. was effective to improve its recycling ratio
from 39% in FY2012 to 68% in FY2020, and Kawai Group’s overall waste recycling ratio was also increased from 57% in FY2012 to 85%
in FY2020. The waste recycling ratio at Kawai Group except Kawai Casting Co., Ltd. has been continuously maintained at 98% or over.
Ryuyo Factory is generating the largest amount of industry waste in the entire Kawai Group but it is taking various measure
to achieve 100% recycling ratio such as reusing the waste including wood chippings and wood ﬂour as materials for papermaking,board, compost and fuel; felt waste for compost; and coating waste for harmless EcoStone.
We will continue making the Group-wide efforts in reducing amount of waste and increasing recycling ratio.

Company outline

Waste reduction activities

Amount of waste(Kawai Casting only)

2,000

80%

1,500

60%

(Kawai Group
except Kawai Casting)

1,000

40%

Recycling ratio

500

20%

Recycling ratio

0

0%
FY

Amount of waste(Kawai Casting only)

2016

Display of an example of recycling coating waste

2017

2018

2019

2020

Recycling ratio(Kawai Group
except Kawai Casting)

Reproduction of piano by manufacturer

Based on the concept of the extended producer responsibility topromote creation of a recycle-based society, our Group is implementing reproduction and reuse of pianos. A group in the internal control division in Japan that is in charge of used pianos iscurrently responsible for this project operated in Ryuyo Factory.
Those pianos taken as a trade-in are reproduced and delivered to
new customers.
In FY2020, about 800 units of piano were reproduced or reused in Japan, 29% of which were exported and currently used inmany places in the world.

There is speciﬁc work that can be done properly only by the
manufacturer. Experienced technicians who are experts andwell-versed in piano making are able to perform an overhaulof piano in full including old ones. We reproduce a piano according to the needs of the customer from exchanging strings,
hammers and actions to overall coating. Reproduction of piano
is a concerted work performed by many technicians with experience in the piano manufacturing division for many years whoare experts with skills in speciﬁc ﬁeld such as coating, woodworking, and tuning. Finished quality of the reproduced pianos
are well received by many customers. Furthermore, there isanother advantage for customers of a piano manufactured by
Kawai that the piano can be repaired or reproduced by using
the original parts of Kawai.

Repaired and soldby Ryuyo Factory
23%

Disposed 0%

Reference material

Exported 29%

Corporate governance activities

Recycle and reuse activities

Reproduction and reuseof pianos taken as a trade-in(FY2020)

Social activities(Kawai Group)

Repaired and soldby sales officein Japan48%

Reproduced by an expert technician

12Striving to increase the environment managementlevel and implementing tree planting project
Company outline

Environment management system

Environmental activities

Kawai Group is promoting introduction of the environment management system ISO14001. Currently in Japan, Ryuyo Factory, Kawai
Hyper Wood Co., Ltd. and Kawai Precision Metals Co., Ltd. have received the ISO14001 certiﬁcation and Kawai Acoustic System Co., Ltd
has made self-declaration of conformity with the standards. In overseas countries, PT. Kawai Indonesia Plants No.1, No.2 and No.3,
Shanghai Kawai Emi Co., Ltd. and Kawai Musical Instruments (Ningbo) Co., Ltd. have received the certiﬁcation.
These facilities mentioned above conduct an internal audit on a regular basis to check the state of progress and for any items to
be remedied in order to ensure the operation of PDCA cycle (repeating a cycle of Plan, Do, Check and Action) for ongoing improvement
which is required in the environment management system.
In addition, those facilities that have the ISO14001 certiﬁcation are subject to an annual surveillance as well as a regular renewal
evaluation conducted by an external certifying body to check whether the environment management system in the facility functions
effectively.

“Kawai Forest” the tree planting activities inIndonesia

Social activities
Corporate governance activities

A large amount of wood materials are used for piano. Voluntary employees in Kawai Group that is a manufacturer handling those wood materials established Kawai Forest Project(Chairman Hirotaka Kawai) in 2007 as a commemorative project to celebrate the 80th anniversary of Kawai.
Pursuant to the basic philosophy of the Kawai Group’s
Global Environment Charter, the Forest Project engages in theactivities of planting trees such as falcata, teak and mahogany
in Indonesia where we have our overseas production facility incollaboration with PT. Kawai Indonesia and the Indonesian forest public corporation for the purpose of ensuring CO2 absorbing sources, regeneration of forests on deforested areas andsecuring sustainable wood resources. In 2017, the Project also
started a regeneration project of mangrove forests that havebeen disrupted at a rapid pace for purposes including aquaculture and by 2020 the group has planted seedlings for mangrove of about 92,000 in the coastal area in Karawang Regency. About 700,000 trees have been planted on an area of about
650 ha including forest land and mountainous area. Most of
those trees have been growing quickly without problem.
Kawai Forest Project is estimated to have an effect of absorbing 10,000 ton CO2 annually and we believe that it is equivalent to absorption of 49% of overall CO2 emissions of Kawai
Group.

“Workshop in the woods” Ryuyo Factory

Reference material

In 2020, Ryuyo Factory commemorated the 40th anniversary of its establishment.
The Factory obtained ISO14001 certiﬁcate in 1997 which was the ﬁrst in the piano industry. The factory sets a goal in its environment policy to expand the amount of green areas at the factory, which the factory has been promoting since its foundation. At
present, an area of about 50% of the premises has been afforested with about 30,000 trees planted by the employees at the factory
which have fully grown over the years, allowing the factory truly became a “Workshop in the woods”.
We are also contributing to the local community by utilizing the “woods” of Ryuyo Factory, for example, holding an event inevery fall season where kindergarten children in Iwata City visit the factory to pick up acorns and enjoy handwork with them.

“Workshop in the woods” Ryuyo Factory

13

Kindergarten children picking up acorns

Understanding the environmental load of corporate
activities with numeric values
To understand the environmental load caused by the corporate activity and to reduce the impact of such load, Kawai Group performs
aggregation of data with regard to amount of resources and energy used and other environmental loads in each stage from development, design, procurement, manufacturing to transportation, and further to use, recycling and disposal of our products by ourcustomers.
Input of energy, chemicals and other materials and emissions of CO2, waste water, chemical substances and waste in FY2020 are
shown below.
Kawai Group is committed to ongoing reduction of the environmental load, as well as expansion of the scope of data and datacollection on a global basis.

Energy (GJ)
Total
380,521
Electric power
333,778
Fuel oil A
4,579
LPG
20,324
Kerosene
3,998
Coal coke
17,841

Water (1000 m³)
Total
248
Well water80
Tap water
100
Industrial water68

Procurement
and manufacturing

Greenhouse gas (ton- CO2)CO218,771

Waste water(1000 m³)

Containers and packaging (kg)
3,854
Paper
9,266
Plastic

Fuel (GJ)
Gasoline
17,495light oil
655

Sales
and service

Transportation

Energy (GJ)Electric power0
Energy in the stage of use was
evaluated as zero because
playing the piano only requires
manpower.
Electric piano and organ
were excluded because setting
assumptions of hours of playing
and other factors are difficult.

Reuse/recycle

CustomerSocial activities

Development
and design

Chemical substances (ton)59

Environmental activities

INPUT

Company outline

Material balance

Chemical substances (ton)Emissions in
10
the atmosphere
Waste
4

198

Containers
and packaging (kg)2,802

Waste (ton)Total emissions
1,688
Incineration/
253
landﬁll
Recycle1,435
CO2 (ton-CO2)
260

Greenhouse gas (ton- CO2)CO20Emission in the stage of using
acoustic piano is assumed zero.
Electronic instruments are
excluded for the same reason as
stated for INPUT.

Corporate governance activities

OUTPUT

GJ

Energy input

500,000

INPUT

Fuel (GJ)

Water consumption(1000 m3)

Electricity (GJ)

Chemicals input

300

400,000

250

300,000

200

ton
150
100

150

200,000

100
100,000
0

50

50
2016

2017

2018

2019

2020 FY

2016

2018

2019

2020 FY

Amount of waste

2500

Incineration/landﬁll

30,000Recycle2000

25,000OUTPUT

2017

ton

2016

2017

2018

2019

2020 FY

Chemicals emissions

50
40

1500

20,00015,000

30

1000

20

10,000
500

5,000
0

0

Reference material

ton

CO2 emissions

ton–CO2

0

2016

2017

2018

2019

2020 FY

0

10
2016

2017

2018

2019

2020 FY

0

2016

2017

2018

2019

2020 FY

14

Kawai’s contribution towards musical culture
promotion
Company outline

Contributions towards musical culture promotion
Giving Kawai Premium Concert

Environmental activities“The KAWAI PREMIUM CONCERT - The International Fryderyk Chopin Piano Competition Challenge of Young Pianists” was held at ACT CITY Hamamatsu Concert Hall on February
23, 2021. This concert was planned to help pianists who have less opportunities to perform in severe situations where concerts and competitions in Japan and overseas havebeen canceled or postponed one after the other. We have invited six pianists to play in theconcert who were planning to participate in the International Fryderyk Chopin Piano Competition, which was supposed to be held last year but postponed to this year.
Those six pianists played some pieces of Chopin and other pieces they cherish expressively and captivated the audience who came together for the concert.

Presenting online concerts
Under the circumstances that a number of concerts are canceled or postponed in many
parts of Japan due to the impact of COVID-19, we presented an online-distributed concert“Kawai Streaming+ (plus)” in cooperation with pianists to deliver a “new-style concert”.
In the online concert, viewers can enjoy music performances for 60 minutes as well asinterviews with the pianists at the end of the concert.
It was a totally different concert from the existing ones we held, but we were happy to beable to deliver music to a large audience.

Social activities

Supporting various musical organizations
Support for the Frédéric Chopin Society of Japan

Support for Leonid Kreutzer Memorial Society

The Frédéric Chopin Society of Japan was established as thefruit of interchange with the Fryderyk Chopin Society in Poland
to celebrate 150th birth anniversary of the composer in August1960. Mr. Shigeru Kawai (then President of Kawai) became the
Honorary President and the society set the administrative officewithin the premises of Kawai, providing various support including for the International Fryderyk Chopin Piano Competition.
http://chopin-society-japan.com/

Professor Leonid Kreutzer was active in Germany and Japan.
Leonid Kreutzer Memorial Society was established by his pupils and concerned parties to commemorate his virtue in March
1962. The society established “The Kreutzer Award” in 1971 tocommemorate Professor Kreutzer’s work for Japanese music
circle. The society has been organizing annual recitals with The
Kreutzer Award winners since 1976.
http://kawai-kmf.com/kreutzer/

Corporate governance activities

Support for Japan-Russia Society for Musicians

Support for Karol Szymanowski Society of Japan

Japan-Soviet Society for Musicians was established in 1984 by
Mr. Tikhon Khrennikov, then leader of the Union of Soviet Composers and Mr. Yasushi Akutagawa, who became the ﬁrst management committee leader in order to promote musical culture
exchange mainly in exchanging recitals of works from eachcountry. The society changed its name to Japan-Russia Society
for Musicians following the dissolution of the Soviet Union andrestarted their and regularly holds concerts for vocal music andinstrumental music.
http://japan-russia-sfm.net/

Karol Szymanowski Society of Japan was established in 1981
to commemorate Karol Szymanowski’s birth centenary. The society’s activities are focused on introducing his works widely inJapan that express profound understanding of Polish national
characteristics and local customs. The society also organizes
concerts in audition format and open seminars.
http://kawai-kmf.com/szymanowski/

Reference material
152021 Charity concert for supporting the Great East Japan Earthquake disaster area
“2021 Charity concert for supporting the Great East Japan Earthquake disaster area” was held at Kawai Sendai on March 11, and at Kawai Hamamatsu
on March 12, 2021. It has been 10 years since the great earthquake disaster,and Kawai Group has been continuing its activities to support people in theaffected area through music.
This year, the charity concert was held in Hamamatsu and Sendai, atdifferent venues than those originally planned due to the impact of COVID-19.
In the concerts, we all had precious time together with the audience to think
about those people and areas affected by the disaster.

Diffusing musical culture overseas

Kawai is actively promoting musical culture in China by displaying products in the International exhibition for musical instruments inShanghai, China (Music China) and by liaising with the Soong Ching Ling Foundation on development of music schools. In addition, as
part of piano technician training activities, Kawai is supporting Jing Song Vocational High School to help in teaching piano technician’s
skill.

Music school in Beijing, China

Social activities

Students at Jing Song Vocational High School receiving piano technician training (in online class)Environmental activities

International exhibition for musical instruments in Shanghai, China

Company outline

Diffusing musical culture in China

Diffusing musical culture in developing countries
Kawai is promoting native educational instructors training and contributing to the diffusion of musical culture and musical educationin each country.

Thailand

Vietnam

Corporate governance activities

Vietnam

Reference material

Indonesia

ThailandIndonesia
16Develop and enrich personality through educational
activities
Company outline

Education business
Kawai is developing wide-ranging educational activities such as English school, drawing and modelling school, in addition to music
school and gymnastic school. Kawai believes education must bring out personality of each pupil; therefore, it provides support for
infants to adults, up to the elderly, according to their ages and skill levels while respecting their individual talent and helping them tolearn to express themselves naturally.

Kawai Music School

Environmental activities● Education philosophy

Kawai Music School (education philosophy)

The Kawai Music School believes that pupils “do not learnmusic” but “learn through music”.
It endeavours to provide courses where the pupils candevelop and enrich their personality through activities toexpress themselves, rather than being taught techniques tosimply improve playing skills.

Kawai will bring out irreplaceable personality from each pupil through music, andcreate the joy of communicating and harmonizing with others while respecting eachother’s personality.

● Education system
The school has always believed “music is the most nourishing seeds to enrich a person”
through its history over 60 years, and implemented the education system and ceaselessly
pursued better teaching methods.
It provides courses for all age groups from children to adults to “nurture pupils wholove music”.

Social activities● High standards of tutors
Since its establishment in 1956, the Kawai Music School has continuously pursued the latest education research and achieved a highly acclaimed track record. The school believes
the perfection of its course contents are unprecedented. It places particular emphasis on
infant courses and the tutors are to learn child psychology and infant education, and attend
regular hands-on seminars.
The school is proud that it has plenty of high quality tutors.

● Various courses to develop personality
Corporate governance activities
Reference material
17

Infant eurhythmics course (group lesson) ……………………………………………………

Individual course (one-to-one lesson) ………………………………………………………………

In addition to develop athletic ability and improve athletic techniques, Kawai aims to provide education to harmonize “body”, “mind”,
and “intelligence” to enrich their humanity in its gymnastic courses and sport courses. Kawai will nurture children’s sociability throughworking towards the goal by collaborating with each other and encouraging each other in group lessons.

Company outline

Gymnastic and Sport School

Gymnastic courses ………………………………………………………………………………………

Mind
Developing feelingand sociability

Intelligence
Developing ability
to think

Infant class

Nurture their individuality, athletic ability, andsociability while using
the whole body.

Teach them the joy of
exercising and love ofsports.

Child class

Challenge course

Nurture their athleticcreativity and enthusiasm for sports.

Nurture their sense ofachievement and zest
for living in the mixedage group.

Sport courses ………………………………………………………………………………………………
Soccer class
Improve because they
enjoy. Continue because
they love it. Let them
dream of the J. Leaguer.

Artistic gymnastics
class
Nurture their mind andbody balance throughartistic gymnastics
techniques.

Rhythmic
gymnastics class
Nurture their movingly beautiful physicalexpression.

Swimming class
Start with paddling,
then teach 4 swimmingstyles to develop theirwhole body.

Kawai Health Promotion Support System ……………………………………………………
Kawai Gymnastic School
regular curriculum andextra-curriculum
Kawai is proposing deploymentof “Kawai Gymnastic School” tosupport the health matters in
the government course guidelines for kindergartens.

Preventive care system

Preventive care exercise
instructors seminar
As a designated business operator for preventive care exercise
instructors who play a central
role in the preventive care prevention business, Kawai plans
and implements seminars.

Kawai is proposing implementation of workers’ healthpromotion programs based on
its long-nurtured knowhow tomunicipality and companies.

Mobile health improvement
tool
Kawai offers the unique toolthat supports walking andhealth management using“interactivity” and “information
processing function” of mobile
phones and PCs.

Reference material

Kawai supports senior citizen’s
preventive care by improving
their mobility, nutrition, and oralcavity function, and preventing
their cognitive function fromdeteriorating.

Support for the speciﬁc
health guidance

Corporate governance activities

Support for overall health promotion at every stage
Kawai has over 50 years’ history of
supporting health promotion suchas gymnastic school all over Japan.
Kawai believes it is its mission to offer
its accumulated skills and knowhow
widely to the society.
Kawai has implemented the“Kawai Health Promotion Support
System” to support health promotion
at every stage for infant to the elderly.
The system provides scientiﬁc support
for them to maintain and improvetheir health using measurement data
and latest devices while they are
enjoying.

Social activities

3 important elements
for Kawai Gymnastic School

Environmental activities

Body
Developing physical strengthand athletic ability

2-years-old class18

Nurturing next generation athletes andproviding the starting point for lifetime sports
Company outline

Sport community
Kawai believes that encouragement, demonstrations, and instructions from top level athletes improve interest in sports and willingness
to get involved in sports; therefore, leading to nurturing next generation athletes and providing the starting point for lifetime sports.
Kawai has invited Hisashi Mizutori, the Chief Advisor of the Kawai Gymnastic School and Yukari Kawamoto, the Chief Advisorof the Rhythmic Gymnastics Class, to develop a “sport community” to offer opportunities such as local events and the “Kawai Cup
Games” to meet top level athletes.

Environmental activities

Kawai Gymnastic School staff
Social activities
Corporate governance activities
Reference material
19

Mr. Hisashi Mizutori

Ms. Yukari Kawamoto

Chief Advisor

Chief Advisorof the Rhythmic Gymnastics ClassHe was the gold medalist of artistic gymnastic men’s team competition at 2004 Summer
Olympic in Athens. He took the position of the
Chief Advisor of the Kawai Gymnastic School
as he retired. He has been giving talks anddemonstration at various locations to widely
propagate the joy of sports. He is also supervising sport programs for developing physicalﬁtness of infants and children, and health improvement of adults.

She performed at the 1992 Summer Olympics in Barcelona. She has been developing
curriculums and training instructors as thechief advisor of the Rhythmic Gymnastics
Class of the Kawai Gymnastic School. She
is also participating in the running of theSport Community.

● Merits and importance of sports● Merits and importance of sports

Sports help us build physical strength, athletic ability, and robust
bodies. Sports also help our mental growth such as ability to achievegoals and to concentrate, and nurture our sociability through communications with teammates and instructors. I believe such opportunities for children to attain these qualities naturally while playing is
extremely important.
I also believe the beauty of sports is that the result of your great
efforts will materialize, and will also touch the spectators’ hearts.

Since I was a little girl, I have always been very active and competitive, and never gave up till I achieved it.
I believe the sense of achievement however small leads to
conﬁdence, and develops liking for devising and creating own sporting style. For example, if you learn wide-ranging body movements
through various sport activities in your childhood, you will continue
to enjoy moving your body throughout your life. Also, experience suchas sharing joy with teammates, helping and encouraging each otherwill help acquiring strength to live one’s life. Therefore, I believe it isimportant to provide environments for experiencing group activities.

Lecture presentation
Ms. Yukari Kawamoto, the Chief Advisor of the Rhythmic Gymnastics Class in the
Kawai Gymnastic School delivered a lecture for about 300 school children in the
4th to 6th grades at the Hamamatsu City Iida Elementary School on September 25,
2020, in response to the request from the elementary school.
She gave a lecture on the theme in line with the elementary school’s education
policy to “nurture children to have a great ambition and ﬂourish”, and she told thechildren how wonderful it is to have dreams and set goals and make the best efforts
as you can, by sharing her own experience. In the latter part of the lecture, she gave
the children an opportunity to experience using equipment such as ribbons that are
Ms. Yukari Kawamoto delivering a lecturenecessary for rhythmic gymnastics performances.
Kawai Gymnastic School is committed to healthy education of children through opportunities to meet top level athletes.

Implementing activities to promote women’s
participation
Company outline

Kawai is promoting activities aimed at building the organization that can respond to thechanging times. Various activities are implemented under a project to promote women’s
participation called “Love it! (Rabitto)”, which was established with the aims to “create anenvironment where women can advance their careers across their life events,” “createa workplace where all employees can fully demonstrate their individuality and abilities,”and “lead to organizational reform and revitalization by incorporating new perspectives
and ideas.”“Ryuyo Factory Women Activity Team” was newly formed at Ryuyo Factory for the
purpose of creating a better factory taking advantages of women’s viewpoint and ideas. In
this way, opportunities for women workers are gradually expanding.

Environmental activities

Supporter Team activities
The Supporter Team consists of members from different divisions, jobs, roles, regions, andgenders across the organization to incorporate new perspectives and ideas to revitalize
the organization as well as plan and propose women’s participation ideas.
Activities and training sessions conducted by the Supporter Team are widely informed
to employees in a form of newsletter issued on a regular basis. In addition, the team has
issued a work-life balance guide book that provides easy-to-understand explanations
about the company systems to support ﬁnding a good balance between work and balancein different life events, in order to raise awareness of those internal systems.

Work-life balance guide book

Providing seminars
Social activities

Kawai is providing manager training to enlighten them to consider well-balanced workand private lives for their subordinates, and also enjoy their own work and private lives.
Kawai is also providing “Health seminar by an obstetrician-gynecologist” focusing on
female physical conditions and health risks and the measures to improve them. Not only
female but male workers can participate in the seminar that provides support for individuals to understand health conditions of their co-workers and families, and envision andrealize a career and a form of family desirable for each one.
Manager training on well-balanced
work and private lives

Promotion of taking childcare leave

Receiving “Eruboshi Certiﬁcation (2-Star)”

Female

Male

80%
60%
40%
20%
0%
2016

2017

2018

2019

2020 FY

Reference material

Kawai received “Eruboshi Certiﬁcation (2-Star)”, being evaluated as an excellent company
under the Act on the Promotion of Female Participation and Career Advancement in the
Workplace (hereinafter “Act on the Promotion of Female Participation”).
“Eruboshi Certiﬁcation” is granted by the Minister of Health, Labour and Welfare tocertify excellent companies in taking measures to promote active participation by females by establishing and implementing effective action plans in accordance with the
Act on the Promotion of Female Participation.
Our company was highly evaluated for the efforts including the employment ratio of
female workers and their average number of years of service, as well as the measures toimprove careers of female employees. We continue our efforts to create a workplace inwhich all employees including female workers can work comfortably.

Ratio of Taking Childcare Leave
Ratio (%)
100%

Corporate governance activities

Childcare leave system was introduced in 1992 as a system to support employees in theirchild rearing while working. The ratio of female workers who took childcare leave was
100% for the second consecutive years in FY2020. On the other hand, the same ratio ofmale workers decreased in the same year partly because they had more time for childcare as a result of standing by at home or staying home due to the effect of the COVID-19
pandemic.
To support female workers to be reinstated after childcare leave, Human Resorces
personnel make contact with each worker taking childcare leave, for consultation aboutchildcare or providing company news. In addition, they are encouraged to take correspondence courses with the cost of a course reimbursed by the company if a person completes
a course, for the purpose of supporting their smooth return to work.

20

Valuing our human resources
Company outline
Environmental activities
Social activities
Corporate governance activities
Reference material
21

Kawai is aiming to be a strong enterprise; therefore, Kawai is making every effort to create the organization that can cope with the
fast-changing world as it approaches our 100th anniversary.

People with disabilities
employment rate

Actively employing people with disabilities
Kawai has been employing more people with disabilities than the statutory employment rate for the six years in a row since ﬁscal year 2015. In ﬁscal year
2020, the employment rate of people with disabilities in Kawai was also 2.45%
whereas the statutory rate was 2.20%.
Thanks to the help from the local school for special needs, Kawai has beenable to continuously employ suitable workers through the work experience program.
Kawai is determined to fulﬁll social responsibility as an enterprise whilevaluing relationships with local organizations.

Employment
rate (%)
3

Kawai's
employment rate

Statutory
employment rate

2

1

0

Actively developing human resources

2016

2017

Kawai implemented education training along with the human resource development system under the new human resource regulation which came into force
in 2007.
Especially in recent years, Kawai is placing a great deal of importance on
young employees. Starting with the new employee training, new employees receive almost annual training for 6 years.
Kawai also provides advanced training for supervisors and managers, aswell as training that is customized for each layer of employees to improve theirabilities every year.

Certiﬁed Health & Productivity Management Outstanding
Organization (The Large Enterprise Category) 2021
Kawai has been certiﬁed as the “Health & Productivity Management Outstanding Organization (The Large Enterprise Category) 2021” for the second consecutive year which are selected jointly by the Ministry of Economy, Trade and Industry and Nippon Kenko Kaigi.
Director in charge of personnel and labor divisions acts as the “health andproductivity management officer” to lead health and productivity management.
Personnel and labor divisions play a central role in promoting the health improvement for employees and their families, in liaison with the central safety
and health committee, which includes the heads of each business branch andrepresentatives of the labor union, as well as industrial health staff and Society-Managed Health Insurance.

Factory tour
We suspended accepting people in our factory tour temporarily because of the
impact of COVID-19. Currently, we have resumed the factory tour only for primary school and junior high-school students in Shizuoka Prefecture. People
who join the tour can observe the assembly process of a grand piano.
The factory has received messages from primary school students who
visited our factory such as “Because I have learned that so many people areworking in piano making, I will treat my piano with care,” “I was surprised to
see what delicate work it is,” and “I myself want to experience making a piano”,
which made us very happy.

Queries concerning the factory tour
Ryuyo Factory (Piano Division, Administrative Office)Address: 252 Tobihiramatsu, Iwata-shi, Shizuoka, Japan
TEL: 0538-66-5111 FAX: 0538-66-5919
You can book the tour from factory’s website (Japanese text only). https://www.kawai.jp/ryuyofactory/

2018

2019

2020

FY

Establishing a sound corporate management system

Kawai established its basic principles of corporate governance based on the “Management Philosophy” to achieve sustainable growthand creation of mid- to long-term corporate value. This basic principles prescribes the basic concept and a system of corporate governance and other related matters in ﬁve chapters.
For detailed information about the basic principles of corporate governance, please refer to the following website:
https://www.kawai.co.jp/company/governance/ (Japanese text only)

Company outline

Basic principles of corporate governance (revised on December 27, 2018)

Implementation of compliance
Environmental activities

The term “compliance” is interpreted as to comply with laws, regulations, etc. and it is believed important to not only observe the laws
and regulations in force in society and corporate internal rules, but also act in accordance with social norms and code of ethics toearn trust in society.
In that respect, Kawai Group is committed to compliance management that involves all the employees to work on compliance. To
be more speciﬁc, we established “Kawai Code of Ethics” and “Standards of Ethical Conduct”, and set up a corporate ethical committeethat includes outside expert members (lawyer).
Furthermore, we have a corporate ethics office that is responsible for the administration of the matters related to corporate ethics to take initiative in operation of a corporate ethics hot line and arousing employees’ awareness of compliance through educationand enlightenment activities.

Basic principles of internal control system
Social activities

Kawai has the “Management Philosophy” and “Code of Conduct” established as business management guidelines and strives to build
a structure in which different organizations play their predeﬁned roles and fulﬁll corporate strategies efficiently in compliance withlaws and regulations and by-laws. With respect to legal issues, we ensure legitimacy through consultation contracts concluded on acontinual basis with multiple legal ﬁrms in each ﬁeld.
In relation to an internal control system, we are working on its establishment pursuant to the “Basic principles of establishing internal control system” which was resolved in the board of directors held on May 12, 2006, recognizing the importance of such systemas part of the corporate governance to increase our corporate value.

Basic principles for elimination of antisocial forces

Commitment of the Chairman, President & CEO of Kawai

Reference material

To enable Kawai to be reborn in view of a new era, I established our new management philosophy in April 1996. The newly establishedmanagement philosophy proclaims that “we provide products and services, giving top priority to customer satisfaction” and that “We carryout corporate activities in view of new era”.
In other words, we always care about customer satisfaction, make efforts to maintain the reliability of the Kawai brand and perform ourcorporate activities in line with social requirements in the new era.
In October 2002, we established “Kawai Code of Ethics” and “Standards of Ethical Conduct” as a basis for each and every employee of
Kawai to act in accordance with common sense in society as a worker and a member of society. We understand that we need to comply with
Kawai Group’s corporate ethics above all things and behave keeping in mind highstandard of ethics and common sense, live up to “social trust” in our company andavoid any act that may damage the reliability of Kawai brand.
Accordingly, I hereby declare that I shall lead all the officers and other employees of Kawai Group and be the first to fulfill my duty fully aware of the corporate
Chairman, President & CEO
social responsibility of Kawai, and comply with the “Kawai Code of Ethics” in allcases and act in accordance with the spirit of “Standards of Ethical Conduct”.

Corporate governance activities

Eliminating antisocial forces from society is important in terms of security measures and it is necessary action to be taken by companies from a viewpoint of CSR. Such action is also required to defend corporations, considering that antisocial forces would cause
tremendous damage on any company including its employees. Based on these principles, our company strives to build and maintaina corporate structure to tackle this issue to prevent any damage caused by antisocial groups as part of our compliance structure andinternal control system.

22

Corporate governance Structure / Internal control system
Company outline

General meeting of shareholders
Appointment/
dismissal

Corporate
GovernanceCommittee

Appointment/
dismissal

Consultation

Board of Directors
Reply

ReportAudit

Environmental activities

Appointment/
dismissal/
supervision

Board of Auditors

Deliberation,
management and decision
on important matters

Board of managing
directors
Direction

Accounting auditor
Appointment/
dismissal

Audit

Representative
director
Appointment/
dismissal

Appointment/
dismissal

ReportAdvisory/report

Direction

Risk Management
Committee

ReportSocial activities

Submission/report ofimportant matters

Operating officer

Internal audit
officeInternal audit

Business operation• Board of Directors: Consisting of directors including 2 outside directors

Corporate governance activities
Reference material
23• Board of Auditors: Consisting of auditors including 2 outside auditors• Corporate Governance Committee: Established as an advisory organization to the Board of Directors to deliberate on the mattersin relation to selection of candidates for director, remunerations of directors and other mattersregarding the improvement of corporate governance, and reply or report on the results to theBoard of Directors.
• Corporate officer system was employed in April 2002.
• Corporate officer system was reformed in June 2005 so that directors can concurrently serve as an operating officer for the purposeof strengthening the ability to address company-wide issues, clearly deﬁning the responsibilities of business operations and theenhancement of line of command. Additionally, outside directors are appointed with the aim of increasing transparency of management based on their advice and supervision made in an objective position and from a broader perspective with respect to theappropriateness of decision-making by the Board of Directors and fulﬁllment of duties of the Board of Directors.
• To ensure strategy monitoring/controlling function, Steering Committee was formed as a management conference to deliberatecompany-wide issues and a company-wide strategic conference was set up to deliberate strategic issues from an across-the-board
standpoint.
• Internal audit: “Internal Audit Office” was established to conduct an audit to check whether business operations are performed legitimately, properly and reasonably with regard to the overall business activities of Kawai Group and to check the usageof corporate resources and the state of compliance with laws and regulations and internal rules.

Main purpose of the risk management structure of Kawai is to prevent risks involved in business operations from occurring. If any
risk becomes obvious, measures to minimize the effects on society and the management will be taken ﬂexibly by addressing the risk
systematically with the organization of office in some cases, or, in other cases, by setting up a committee, etc. to deal with the risk toprotect the entire Group if necessary.
To deal with risks involving the entire Kawai Group, Risk Management Committee is responsible for establishing rules and regulations, checking the operation status, training of workers, planning and providing training programs, as well as regularly reporting to
the Board of Directors on the company-wide risk management status.
Under the Risk Management Committee, subcommittees are established in the following ﬁelds and in the event of emergency,“Emergency Headquarters” will be promptly established to take quick actions and prevent expansion of damage.

Product Safety Measures Committee

Kawai Group established Global Environment Committee in 1994 which
has since been actively engaged in preservation of the global environment. Global Environment Committee has set out “Global Environment
Charter”, “Kawai Environment Principles”, “Green procurement guideline” and “Wood materials procurement guideline”. The Committee
strives to ensure compliance with laws and regulations related to theenvironment as well as reducing the risks of environmental pollution
by setting the objectives and goals of the environmental preservation.

In the event that any safety deﬁciency is found in our product in themarket which caused or is deemed likely to cause any injury to customer’s life or body, the Committee will take quick actions including
notice to customers, report to a relevant administrative organization
and recall of such product, and also carry out all activities to minimize the damage to customers.

Overseas Safety Measures Committee

Central Disaster Prevention Measures Committee

This Committee is responsible for the risk management for overseas
subsidiaries, expatriates and workers on overseas busines travel.

This Committee establishes preventive measures against disasters
that may occur in Kawai Group including ﬁre, damage by wind andﬂood and so on, and is responsible for all range of activities to minimize damage in the event of a disaster.

Information Security Committee

Central Safety and Health Committee

This Committee is in charge of the management from a company-wide
perspective to ensure and maintenance conﬁdentiality, integrity andavailability of the information assets.

This Committee strives to arouse attention of the employees in
Kawai Group about their safety and health, and engages in various
activities to prevent disasters and diseases.

Social activities

Global Environment Committee

Environmental activities

Risk Management Committee

Company outline

Risk management structure

Corporate Ethics Committee

Flow of Corporate Ethics Committee and Corporate Ethics Hot Line
Information/consultation
regarding illegal act, etc.
Feedback of results* Informants will not receive
any prejudicial treatment.

To Chairman of Corporate Ethics Committee
via Corporate Ethics Office Chief● Under real name in principle
for reason of investigation

Undisclosed

Corporate Ethics Office

Request to consider
disciplinary action

Corporate Ethics
Committee
ReportAdvice or orderto stop illegal act

Direction

Investigation team

Reference material

Mail report in writing
Undisclosed

Human Resource
Department

Corporate governance activities

In order to promote compliance management, we have established a compliance outline (including the Kawai Code of Ethics and Standards ofEthical Conduct) that includes social norms in addition to legal compliance, and have also established a Corporate Ethics Committee that includes
outside experts such as lawyers. In addition, corporate ethics office that is responsible for the administration of the matters related to corporate
ethics takes initiatives in operation of a corporate ethics hot line and arousing employees’ awareness of compliance through education and enlightenment activities.

Relevant divisions(sales, factory)(department, company)

Investigation

24

List of environmental loads by site

Ryuyo Factory
Iwata City, Shizuoka Prefecture

Site area: 168,218 m²

Shinmiyakoda, Kita-ku, Hamamatsu City,
Shizuoka Prefecture

Site area: 26,817 m²

Sasaga, Matsumoto City, Nagano
Prefecture

Kawai Casting Co., Ltd.
Yanaidamachi, Hakui City, Ishikawa
Prefecture

Site area: 41,000 m²

Business: Manufacturing automobileinterior parts
Site area: 15,074 m²

Sasagase-cho, Higashi-ku, Hamamatsu
City, Shizuoka Prefecture

Site area: 2,972 m²

Terajima-cho, Naka-ku, Hamamatsu City,
Shizuoka Prefecture

Site area: 6,784 m²

OUTPUT

Business: Headquarters function,
research and development

INPUT

Reference material
25

Headquarters

OUTPUT

Business: Manufacturing and sellingsoundproof chamber and acoustic
components

INPUT

Kawai Acoustic System Co., Ltd

OUTPUT

Corporate governance activities

Nakagori-cho, Higashi-ku, Hamamatsu
City, Shizuoka Prefecture

INPUT

Kawai Hyper Wood Co., Ltd.

OUTPUT

Business: Manufacturing and selling pig
iron castings

INPUT

Social activities

Site area: 14,612 m²

OUTPUT

Business: Manufacturing metal parts

INPUT

Kawai Precision Metals Co., Ltd.
Matsumoto Factory

OUTPUT

Business: Manufacturing metal parts

INPUT

Environmental activities

Kawai Precision Metals Co., Ltd.
Hamamatsu Factory

OUTPUT

Business: Manufacturing pianos

INPUT

Company outline

Reference
1990
2016
Electricity
GJ
Fuel
GJ
Water
1000 m³
Chemical substances
ton
CO2 emissions
ton-CO2
Chemical substances
ton
Waste incineration/landﬁllton
Waste recycle
ton

101,341
28,2533330.0

Reference
year
2017
2018
2019

2020

Compared toreference year

437.3
102.0

57,787
17,861
35.6
36.8
3,553
9.1
0.3
823.2

55,627
18,032
38.1
39.1
3,462
10.1
0.2
836.0

55,292
16,876
45.2
44.6
3,388
12.3
0.2
854.5

54,54916,668
48.5
46.1
3,343
13.8
0.0
921.5

48,95014,989
48.6
38.6
3,001
10.1
0.0
764.6

-11.5%-11.2%
7.5%-13.5%-11.4%-17.9%-100.0%-10.5%

Electricity
GJ
Fuel
GJ
Water
1000 m³ Started
Chemical substances
ton
operation
fromCO2 emissions
ton-CO2
1994
Chemical substances
ton
Waste incineration/landﬁllton
Waste recycle
ton

63,386
21.9
28.5
3.0
2,894
3.0
0.0
58.3

68,526
22.7
30.0
1.8
3,129
1.1
0.0
57.0

67,822
29.1
31.4
3.0
3,097
2.6
0.0
64.0

63,834
29.4
28.4
0.0
2,915
0.0
0.0
54.7

59,118
22.0
23.6
0.0
2,699
0.0
0.0
32.3

-12.8%-24.4%-24.8%-100.0%-12.9%-100.0%Electricity
GJ
Fuel
GJ
Water
1000 m³
Chemical substances
ton
CO2 emissions
ton-CO2
Chemical substances
ton
Waste incineration/landﬁllton
Waste recycle
ton

42,748
5,393
72.3
39.5
2,333
30.6
2.2
19.4

48,971
5,473
79.6
33.5
2,622
26.1
2.1
29.9

49,627
4,194
67.0
15.2
2,561
8.6
1.8
16.5

46,436
3,417
69.1
0.4
2,325
0.0
1.9
8.2

45,629
4,024
79.0
0.5
2,324
0.0
1.1
15.3

-8.1%
-4.1%
17.9%
-96.7%-9.3%-100.0%-38.9%-7.3%

Electricity
GJ
Fuel
GJ
Water
1000 m³ Started
Chemical substances
ton
operation
fromCO2 emissions
ton-CO2
2012
Chemical substances
ton
Waste incineration/landﬁllton
Waste recycle
ton

70,17833,656

65,776
28,84759,15923,87554,354
21,44254,472
20,354-7.9%-14.7%

22.8
6,634
1.9
349.7
854.6

19.5
6,009
1.7
345.1
611.9

14.6
5,193
2.5
298.5
622.9

13.9
4,720
2.7
212.6
531.9

12.8
4,597
2.0
237.9
500.9

-12.3%-11.5%-20.0%-20.3%-19.6%

Electricity
GJ
Fuel
GJ
Water
1000 m³
Chemical substances
ton
CO2 emissions
ton-CO2
Chemical substances
ton
Waste incineration/landﬁllton
Waste recycle
ton

15,084
3,595
3.6
16.1
943
2.8
0.0
117.6

14,134
2,885
3.0
13.8
849
2.4
0.0
79.7

16,415
2,771
3.4
14.8
945
2.6
0.0
91.6

13,174
2,517
2.7
9.9
780
2.1
0.0
77.1

11,235
2,147
2.3
7.2
665
1.5
0.0
47.6

-31.6%-22.5%-32.4%-51.4%-29.6%-42.3%

920
0.0
0.2

871
0.0
0.2

865
0.0
0.2

881
0.0
0.2

1,066
0.0
0.2

23.2%

42

40

39

40

49

25.6%

3.3
11.4

0.0
7.1

0.0
11.0

0.0
15.0

0.0
18.0

63.6%

5,827
26
3.6

6,207
140
3.6

5,751
102
3.4

5,574
160
3.7

5,710
166
3.8

-0.7%
62.7%
11.8%

267

293

269

265

272

1.1%

4.5
24.1

4.2
22.9

5.5
78.9

3.7
56.8

11.1
56.8

101.8%-28.0%

7,632

57,070
7,132
42.1
3,674
0.0
61.4

14,787
11
28.6
1,250
218.2
32.3

Electricity
GJ
Fuel
GJ
Water
1000 m³ Started
Chemical substances
ton
operation
fromCO2 emissions
ton-CO2
2008
Chemical substances
ton
Waste incineration/landﬁllton
Waste recycle
tonElectricity
GJ
Fuel
GJ
Water
1000 m³
Chemical substances
ton
CO2 emissions
ton-CO2
Chemical substances
ton
Waste incineration/landﬁllton
Waste recycle
ton-49.5%-48.0%

0.0%

Third party comment
Company outline

Professor Kiyohiko Nakasaki
Tokyo Institute of Technology School of Environment and Society

Reference material

We express our deep gratitude to Professor Nakasaki for giving us valuable evaluation and comments continuously for this ﬁscal year.
The Environmental and Social Report 2021 of Kawai Group is structured and designed so that our Group’s activities to implement
four important strategies of the 6th Medium-term Management Plan “Resonate 2021” can be clearly understood. Receiving evaluationof our activities from Professor Nakasaki, particularly the measures in relation to “organizational strength” and endeavors to reduce
environmental load reduction, we are very much encouraged to continue our efforts toward new goals.
We continuously strive to enhance our corporate value, achieve the long-term vision “Establishing a 100-year brand” and to contribute to realization of a sustainable society through commitments including maintaining harmony with nature, active involvement insocial activities and making contributions to musical culture.

Corporate governance activities

In appreciation for the third party comment

Social activities

With regard to the environmental activities of the company,
interesting estimates are reported. In the Kawai Forest Projectthat has been continuing since 2007 in Indonesia, approximately 700,000 plants were planted so far in an area of about 650
ha. This forest absorbs CO2 emissions in an amount equivalent
to 49% of a total emission of Kawai Group according to the report, clearly visualizing the great results of the company’s diligent endeavors to reduce CO2 emissions. As for the goals andachievements of environmental load reduction, amounts of CO2
emissions and waste are reported, stating that, in FY2020, CO2
emission per unit of sales, which is CO2 emission based on sales
amount, was reduced by 4.8% from the level of FY2018, andamount of waste per unit of sales was reduced by 12.0% fromthe level of FY2018, both signiﬁcantly exceeding the goal of areduction by 1% year on year from the reference level of FY2018.
In addition, in the efforts to response to the Energy Conservation
Act, two Group companies, Kawai Musical Instruments Manufacturing Co., Ltd. and Kawai Precision Metals Co., Ltd. received
Class S evaluation as their environmental activities were highly evaluated by the Agency for Natural Resources and Energy.
From the report on those facts, we can understand that Kawai
Group is taking effective measures in its environment preservation activities.
In addition to the information stated above, the report also
reveals that Kawai Group’s aggressive attitude to try new things
to quickly deal with the effects of COVID-19, including provisionof online distribution of concerts “Kawai Streaming+ (Plus)” andonline classes for students at Jing Song Vocational High School
to teach piano technician’s skill. I expect that Kawai Group willsurvive the COVID-19 pandemic to evolve into an even more excellent company.

Environmental activities

The COVID-19 pandemic that has been continuing to be a threat
in our society since 2020 imposes various restrictions and inconveniences not only to our daily lives, but also to corporate
activities. Sales of pianos were also affected. However, the Kawai
Group took action to recover from a setback featuring productsthat meet the demand raised by stay-home lifestyle and provide
online lessons, etc., and as a result, we can see the sign of recovery in sales and also in the number of students in music schools
both in Japan and overseas. These corporate efforts have produced fruits of robust sales and operating proﬁt as described in
the report.
In the 6th Medium-term Management Plan “Resonate 2021”,
the company is committed to the enhancement of “sales ability”,“product and service strength”, “production power” and “organizational strength” toward the goal of establishing a 100-year
brand. Speciﬁc measures to take for each of these four elements
are explained in an easy-to-understand manner. Especially themeasures for increasing “organizational strength” have resulted
in the company’s receiving a certiﬁcate as the “Health & Productivity Management Outstanding Organization” for the second
consecutive year, which shows that the company is promoting“Health and Productivity” to enable its employees to work lively.
Furthermore, the company was also granted “Eruboshi Certiﬁcation (2-Star)” by the Minister of Health, Labour and Welfare,being evaluated as an excellent company in taking measures topromote active participation by females. In this way, the company’s activities to increase “organizational strength” are highly
evaluated by external organizations, which will in turn increase
the strength of Kawai brand and lead to the enhancement of its
corporate value.

(Kawai Global Environment Committee Office)26

Kawai Musical Instruments Manufacturing Co., Ltd.
Contact:
Kawai Global Environment Committee
Office: General affairs division CS environment office200, Terajima-cho, Naka-ku, Hamamatsu City, Shizuoka Prefecture, 430-8665
TEL: 053-457-1252 FAX: 053-457-1300
URL: https://www.kawai.co.jp/