VALQUA Group
Address inquiries to VALQUA, LTD.
General Affairs Group, TEL 03-5434-7370, FAX 03-5436-0560
ThinkPark Tower 24F, 2-1-1 Osaki, Shinagawa-ku, Tokyo 141-6024 JAPANhttps://www.valqua.co.jp/

VALQUA Group

Sustainability
Report 2023

Value & Quality
About the cover
The VALQUA Group used photographs of children on the cover of this Sustainability Report to reflect ourwish to contribute to the “Creation of a Bright Future” through business that provides customers with safety,
peace of mind, and prosperity, and through sustainability activities such as support for ballroom dance. We
would like to see a future in which all children can be active and succeed in safety and peace of mind.
The cover of this report is graced by photographs contributed by VALQUA Group employees (photos of theirchildren and grandchildren).

Editorial Policy ................................................................................... 2
Table of Contents . ............................................................................. 3
Corporate Philosophy ....................................................................... 4
History of VALQUA ............................................................................ 5
Top Message ....................................................................................... 6

CONTENTS

Special Feature 1. Promotion of CX . .................................... 8

About Sustainability Report 2023
Starting in 2023, our new Sustainability Report will be an integrated report
combining material that has traditionally been included in the sustainability
report with that which has traditionally appeared in our company brochure.
Editorial Policy
This Sustainability Report is issued once a year to communicate our basic approach to thesustainability of the VALQUA Group and our Sustainability Materiality to all of our stakeholders.
From 2023 onward, we will issue a publication that integrates the traditional sustainability reportwith our company brochure and provides more information, most of which is of a non-financial
nature. Moreover, we are striving to reduce our use of paper resources by issuing a “digest” inbrochure form and publishing the full version on our website. Some sustainability information will be
disclosed solely on the website as a supplement to our Sustainability Report.

Our continually evolving lined tankservices business

Sustainability Report– Proud pioneers in the manufacture oftank linings –Special Feature 2. Human Resources Development ..........10

Taking on unprecedented challenges
my way as a female manager

Overview of VALQUA Group businesses .....................................12
VALQUA’s Relationship to Society ................................................14
Philosophy and Policy on SDGs . ...................................................16
Sustainability Management ...........................................................17
Sustainability Materiality ...............................................................18
Defining the sustainability materiality matrix ............................20

VALQUA Group’s
Sustainability Activities in 2022
Corporate governance

Issued in June 2023 (Previous Issue in June 2022)

01. Spread of the Corporate Philosophy . ..............................2202. Strengthening of corporate governance .........................23
03. Promotion of Group’s global activities . ...........................24
04. Dialog with stakeholders . ..................................................24

Reporting Period

Compliance

Month and Year of Issue

April 1, 2022 to March 31, 2023
Some of the reports include content from before or after the above period.
Information such as the organizational chart and policies is current as of April 2023.
Responsible Department and Contact Information
General Affairs Planning Section, General Affairs Division, General Affairs Group, VALQUA, LTD.
E-mail.csr@valqua.com
Scope of Reporting
VALQUA, LTD. and its 15 consolidated subsidiaries(Hiring rates for persons with disabilities and percentage of women in management positions are
figures for VALQUA, LTD. alone.)
Reference Guidelines, Etc.
GRI Standards, ISO26000, UN Global Compact,
Sustainable Development Goals (SDGs), Responsible Business Alliance (RBA) Code of Conduct
Reporting Media

PDF
versionWeb
versionSummarizes high-priority sustainability-related efforts
in an annual report.
https://www.valqua.co.jp/
social/report/
Exhaustive posting of latest information and additional
information on our website. Updated frequently.
https://www.valqua.co.jp/
social/05. Prevention of corruption and bribery ..............................25
06. Legal compliance .................................................................26
07. Compliance with environment-related...........................27
laws and ordinances, etc.

Environment

08. Prevention and reduction of leakage of.........................28
environmentally hazardous substances
09. Reduction of environmentally...................................29
hazardous substances in business

Safety and health10. Occupational health and safety ........................................31

Supply Chain Management

11. Handling of conflict minerals, etc. . ..................................32

Human Resources and Human Rights

12. Ensuring of the diversity of human resources . ..............33
13. Respect for human rights. .........................34(including human rights due diligence)
14. Human resources development . ......................................34

Customer Satisfaction

15. Improvement of quality and..............................35
customers’ safety and peace of mind

Community

16. Promotion of sports, culture, and the arts
. ....................36
Exist with harmony to the community

VALQUA Network ..................................................................382

3

VALQUA Group Sustainability Report 2023

The VALQUA Group’s Corporate Philosophy – “THE VALQUA WAY” – consists of the Core Principleof “Value & Quality” from which the company name is derived, together with the “Four Corporate
Principles” and “Ten Action Principles” that aid employee understanding and facilitate
implementation.

Established joint venture TAIWAN VALQUAENGINEERING INTERNATIONAL, LTD.

1932
April

Established NIPPON VALQUA INDUSTRIES,
LTD. and started manufacturing of gaskets forindustrial use.

2000

DecemberE s t a b l i s h e d VA LQ UA S E A L P RO D U C T S(SHANGHAI) CO., LTD.

1941

Began manufacturing synthetic rubber
gaskets and joint sheets for airplanes.

2002

Established VALQUA (SHANGHAI) TRADING
CO., LTD.

1952

Completed research work on the fabrication offluorocarbon resin and was the first company
to successfully commercialize the product inJapan. Began manufacturing and sales of suchresin under the trade name “VALFLON”.

2004

Established VALQUA KOREA CO., LTD.

1969

Established joint venture TAIWAN VALQUA
INDUSTRIES, LTD.

2006

Opened M·R·T CENTER in Machida, Tokyo

1975

Listed as a publicly quoted company in theFirst Section of the Tokyo Stock Exchange.

2008

Established VALQUA VIETNAM CO., LTD.

1988

E s t a b l i s h e d j o i n t v e n t u re VA LQ UA
INDUSTRIES (THAILAND), LTD.

2010

September

Launched enhanced China operations throughan operational and capital tie up with Daikin
Industries, Ltd.

1993

NovemberE s t a b l i s h e d N a r a Wo r k s a n d s t a r t e dmanufacturing of highly-functional rubber
products.

2011

DecemberAcquired the present VALQUA FFT INC. andmade it a consolidated subsidiary.

1995

Established SHANGHAI VALQUAFLUOROCARBON PRODUCTS CO., LTD.

2017

Acquired the present VALQUA NGC, INC. andmade it a consolidated subsidiary.

1998

Established VALQUA AMERICA, INC. in USA.

2017

E s t a b l i s h e d VA LQ UA I N D U S T R I E S
SINGAPORE PTE. LTD.

2018

Changed company name to VALQUA, LTD.

January

JuneGroup’s sustainability.
The VALQUA Group will continue to create value and improve quality to contribute to the richnessof the human race and global environment.

February

July

Core
Principle&

Quality
Create value
and improve quality

●

July

AugustJune

The history of

VALQUA

April

March

November

October

2022
April

Moved from First Section of Tokyo Stock
Exchange to Prime Market.

VALQUA Network

4

1. Run a business that contributes to society
2. Be an inspiration to the customers
3. Hold respect for individuality and personality
4. Earn the trust of the shareholders
5. Exist with harmony to the community
6. Always treat health and safety with top priority
7. Respect compliance and work with full honesty
8. Aim for environmentally friendly production
9. Conserve and utilize resources effectively
10. “Learn and grow” with a spirit to face challenges

January

Sustainability
Activities report

Ten Action
Principles

March

Sustainability
Management

For the Benefit of SocietyWith Fairness● For Stakeholders Worldwide● Through Creative Technology●

September

September

Relationship toSociety

Four
Corporate
Principles

Value

March

Overview

2000

Special Feature 2This deep understanding and implementation of THE VALQUA WAY forms the basis of the VALQUA

1927

Founded as NIPPON BRAKE LININGSEISAKUSHO in Osaka for the manufactureand sale of brake linings for automobiles andhigh-speed machinery.

Special Feature 1

THE VALQUA WAY

History of VALQUA

Top Message

Corporate Philosophy

History of VALQUA

Corporate Philosophy · History of VALQUA

5VALQUA Group Sustainability Report 2023

History of VALQUA

Top Message
The challenge of “Bold CX”
In society and corporate governance, we are rethinking andstreamlining our sales network in preparation for the further
acceleration of the information society. In Taiwan, we have
moved to a new plant and are strengthening our production
system to accommodate increased production.
Moreover, we have completely overhauled our R&D*2
organization, and by adding M&D*3 functions to each businessYoshihiro Hombo

Representative Director, President & COO

Basic policy of mid-term business plan, New Frontier 2023 (NF2023)
In a rapidly changing global situation, we will uphold our customers’ trust according to “THE VALQUA WAY,”
aiming to become a company that continues to create new value through both Hardware and Services (H&S)

6

With intellectual curiosity and the spirit of challenge, the VALQUA Group will continue to pursue
innovation and take on new challenges under the banner of “THE VALQUA WAY”, For the Benefit of Society,
With Fairness, For Stakeholders Worldwide, Through Creative Technology.
We continue to hope for your unwavering support and guidance of our Group in the future.
Representative Director, Chairman & CEO Toshikazu Takisawa
Representative Director, President & COO Yoshihiro Hombo

VALQUA Network

1. Adopt new materials and enter new markets and businesses by accelerating a bold strategy for M&As and businessalliances
2. Decisively move forward with supply chain reforms in response to increasing geopolitical risks
3. Establish an AI/IT solutions business that can continuously create value for our customers
4. Accelerate R&D and human resource development in order to expand into new business areas
5. Further strengthen existing businesses by increasing capital investment and enhancing sales channels

Sustainability
Activities report

Representative Director, Chairman & CEO

the VALQUA Group Basic Policy on Human Rights because it
has traditionally considered its “human resources” to be its
most important asset. In the future, we intend to make evenstronger efforts to create an environment in which diverse
human resources can play an active part regardless ofnationality, gender, or age.
For the present report, a “Sustainability Report Editorial
Committee” was inaugurated in January 2023 with the aim of
more exhaustive and appropriate disclosure of information,
especially as regards our Group’s sustainability.

Sustainability
Management

Toshikazu Takisawa

In April 2022, when VALQUA moved into the “Prime
Market” of the Tokyo Stock Exchange, it transformed its “CSR
Promotion Committee” into a “Sustainability Committee” toaccommodate the revision of the “Corporate GovernanceCode” through enhanced governance and sustainability
activities. We also rethought our Sustainability Materiality toemphasize the relatedness of our NF2023 management
strategy to our business plan, and we have strengthened ourefforts in the area of human rights by adding compliance with“human rights due diligence”. The VALQUA Group established

Relationship toSociety

Increased efforts to promote sustainability

Overview*1 CX: abbreviation for corporate transformation.
*2 R&D: abbreviation for research and development.
*3 M&D: abbreviation for marketing and development.
*4 H&S: VALQUA is providing solutions oriented toward the maximization ofcustomer value by adding “S” (services) that take into account the perspective of
the customer to “H” (hardware = products) with high added value.

Special Feature 2

group, we have constructed a system for developing products
rapidly and from the perspective of our customers.
Amidst the ongoing global inflationary trend, sharp
increases in the cost of energy, foods, and all other commodities
are unavoidable in Japan, as elsewhere, and we expect ourGroup’s business environment to become even harsher as the
sluggish market for consumer goods causes demand forsemiconductors to decelerate.
Even in these difficult times, we aim to exhibit the true
value of the Visionary Management that the VALQUA Group hasforged over the years. In order to make fiscal year 2023 a fitting
Final Year for the VALQUA Group’s mid-term business plan
“New Frontier 2023” (NF2023), we are promoting an awarenessof the need to flexibly and speedily adapt to and address allchanges and risks. At the same time, we are steadily
implementing H&S*4-based initiatives, including M&A through“selection and concentration”, strengthening of our ability tocope with material risks, rebuilding of the supply chain,intensifying our utilization of AI/IT, and enhancing humanresources development to support the next generation.

Special Feature 1

Earthquakes and natural disasters caused by abnormal
weather are occurring all over the world, and rising geopoliticaltensions are causing divisions between people. Together withthe growing complexity of the market environment anddestabilization of the economy, these factors are having a major
global impact that is being felt in widespread anxiety.
In the business environment that surrounds the VALQUA
Group, the established supply chains that we have relied on thus
far have been greatly damaged by rising resource and energy
costs and the difficulty of procuring raw materials.
Amidst this harsh business environment, the VALQUA
Group has been promoting CX since 2021 (CX*1 Year One). The
image that we wished to project in our centennial year, 2027,
was “a challenging company that challenges the future and theunknown”. To achieve this ideal corporate image, we redoubled
our efforts in environment, society, and corporate governance,
and as a result, we have earned the highest profits in our 95year history.
We sincerely feel that this is proof that the Corporate
Philosophy of “THE VALQUA WAY” has permeated throughout
our Group, and that our employees have maintained their focus
on the future amidst this rapidly changing environment and arethinking for themselves as they rise to meet challenges.
For instance, in the area of environment, we have beenproactive about providing environmentally friendly products
through activities that are in harmony with the proposals of the
Task Force on Climate-related Financial Disclosures (TCFD). We
have also made efforts to reduce CO2 emissions by using
renewable energy in domestic and overseas manufacturing
plants, by designing products oriented toward the practicalapplication of hydrogen energy, and by promoting our siliconwafer reclaiming business.

Top Message

We will continue to implement
reforms and take on challenges tocontribute to “the richness of thehuman race and global environment”

7

VALQUA Group Sustainability Report 2023

History of VALQUA

Special feature.1 Promotion of CX

Top Message

Our continually evolving lined
tank services business– Proud pioneers in the manufacture of tank linings –Special Feature 1

SDGs to which this contributes

Exterior of
lined tankToward becoming true specialists inlining manufacture
In the VALQUA Group, production of the first lined tanks inJapan began in 1972, and in 1977 we became the first in Japan todevelop the present manufacturing method in which polyvinyl
chloride welding technology is applied to weld PTFE sheets using
PFA.
We then sprinted beyond our competitors in the expansion of
our global network by establishing a subsidiary in Taiwan as early
as 1997 (the present TAIWAN VALQUA ENGINEERING
INTERNATIONAL , LTD.), together with new lined tankmanufacturing plants at VALQUA NGC (USA) and VALQUA SEALPRODUCTS (SHANGHAI) CO., LTD. (China) in 2017.
Our Taiwanese subsidiary built additional plants in 2012 and2015, and in 2021, operations began at a new plant in Kaohsiung,located in the “Southern Taiwan Science Park”, with twice the areaof the previous plant (site area of approximately 15,000 m2, andtotal floor area is approximately 6,600 m2). Positioning special
fluororesin tanks as strategic products, this subsidiary is promoting
technology development oriented toward improving quality as acore base in the global supply chain. Last year the VALQUA Group
proactively expanded the tank business that supports leading-edge semiconductors by becoming the first to conduct fullscale introduction of the aforementioned “pre-cleaning tank”.
Twenty-six years have now passed since the establishment of
our subsidiary in Taiwan. Today, in 2023, we have earned the deep
trust of customers in and outside of Taiwan for the quality of our
fluororesins, the meticulous inner surface processing and finishingof tanks, and the various tank-related services we provide, and our
subsidiary in Taiwan has grown into one of the overseas production
bases that represent the Group.
We now look ahead to January 2025, when the Tahara Works
that will become our global flagship plant will come on stream.
With ever stronger insistence on high quality, the VALQUA Groupwill strive to evolve into a true specialist in the manufacture oflinings that can achieve stable procurement through a robust
supply chain and handle everything from manufacture to repair,periodic inspections, and predictive maintenance.
Never ceasing to be the pioneer in the lined tank industry, we
will continue to be the driving force in lining manufacture worldwide.

TAIWAN VALQUA ENGINEERING INTERNATIONAL, LTD. (aerial photograph)

VALQUA Network

8

This investment has been adopted under the Ministry of
Economy, Trade and Industry’s program of “domestic investment
promotion projects for supply chain countermeasures”, and it isrecognized by the government as a project that contributes to thestrengthening of the domestic supply chain.

Sustainability
Activities report

Exterior of ISO container

Image of new Tahara Works (Design drawing)

Sustainability
Management

In view of the movement toward reshoring semiconductor
production and the potential for generating long-term demand, the
VALQUA Group has positioned the strengthening of domestic
production power for the lined tanks and lined ISO containers thatare our major products as a challenge that should be prioritized in
the mid-term business plan “New Frontier 2023” (NF2023), alongwith improving technology to prepare for the manufacture of nextgeneration semiconductors. To take on this challenge, we havedecided to invest in a new manufacturing plant for lined tanks in
Tahara City, Aichi Prefecture (tentatively name: Tahara Works). It has
been 30 years since we built the former Nara Works (the present
VALQUA SEAL SOLUTIONS CO., LTD.) as an investment in a domestic
base with our own production functions. The site area isapproximately 11,500 m2, and total floor area is approximately
5,500 m2. Completion of construction and the start of production
are scheduled for January 2025.
The activities of the Tahara Works will not be limited to the
manufacture of tanks by our existing lining methods. The plant will
operate an advanced tank business that introduces newtechnologies and services. The role of the Tahara Works will be thatof a global flagship manufacturing plant for lined tanks that goes
further in pursuing high quality and advanced services to support
leading-edge semiconductors. It will contribute to theminiaturization of semiconductors by providing the world’s cleanest
tanks (“pre-cleaning tanks”) as well as “tank diagnosis”. By adopting
environmentally friendly manufacturing methods, it will reduce theenvironmental burden. Through the operation of the Tahara Works,
it will also be possible to streamline production so that all processes
up through the application of the lining are performed in Japan. This
will reduce the risks associated with supply chain fragmentation andhelp to realize strategic supply chain management.
By increasing the production efficiency of our Group, we aim toachieve rapid and stable supply of products to the semiconductor
plants that are experiencing growth in demand globally. In doing so,
we will contribute to the solution of the semiconductor shortage thathas recently become a social problem, as well as to the growing
sophistication of semiconductors.

Relationship toSociety

Semiconductors are the primary components of manyindustrial products such as smartphones, personal computers, andautomotive equipment, and they are indispensable to our lives. As
important infrastructure for the rapidly advancing informationsociety, semiconductors are also a product area in which
technological innovations and expansion of market scale are
expected.
Heretofore, production of semiconductors has been focused incertain foreign countries, but in Japan there is now a growing
movement to reconsider the importance of domestic production.
Accordingly, the revitalization and pursuit of competitive advantage
in the domestic semiconductor industry have been established asnational strategy. Emblematic of this trend is the start of production
at the world’s largest semiconductor foundry in Japan’s Kumamoto
Prefecture (The VALQUA Group is now entering a phase in which
its achievements overseas are recognized and orders for lined tanks
that are received by VALQUA are fulfilled through production andproduct supply in Taiwan).
Thus, we are ushering in an unprecedented boom ininvestment in semiconductors in Japan. In the future, VALQUA is
expected to distribute even greater quantities of lined tanks for
supply of the liquid chemicals used in the semiconductor
manufacturing process, as well as lined ISO containers fortransporting high-purity liquid chemicals from sources in andoutside of Japan. In light of these changes in industrial structure,
the lined tanks
that are the
VALQUA Group’s
major products
could be said tobe indispensable
to the expansiono f p ro d u c t i o nactivity in Japan.

Overview

Strengthening the domestic supply chain
through new technologies and services

Special Feature 2

Rising importance of domestic production– Strategic indispensability –9

VALQUA Group Sustainability Report 2023

History of VALQUA

Special feature.2 Human resources development

Top Message

Taking on unprecedented challenges
my way as a female manager
SDGs to which this contributes(This section is based on an essay written by Ms. Fuku Tanaka in Japanese, with modifications)

Angst and experience as the first female
new graduate in sales

Accounting Section

With the Management Division and CEO
Takisawa at the Well-being Thanks Party
hosted by CEO Takisawa in 2023.

VALQUA Network

When I was appointed Sales Division Manager in April of 2020,
my standpoint shifted from that of a player to a manager. All of myolder former colleagues now became my subordinates, and we felt

Sustainability
Activities report

10

The challenge of connecting to the next
generation, for a female leader

In April 2021, I was honored to be selected by CEO Takisawa
as a member of the 2-year Overseas Management Training
Course, along with 6 candidates for executive positions from the
3 bases of Taiwan, South Korea, and Vietnam.
All 7 participants in the course came from different
backgrounds, but we all applied ourselves and completed thetraining with the common goal of “wanting to help VALQUA growinto a truly global corporation”. Through this training, we learned
the importance of accepting diversity, the convictions we musthave as managers, the things we must be prepared to do,
the necessary skills, and many other points that would help
us become suitable leaders for a tumultuous age. More thananything, this training gave me more opportunities to speakwith CEO Takisawa directly, and I was able to gain a deeper
understanding of VALQUA’s Visionary Management.
VALQUA holds it important for people of different
backgrounds to raise each other up while respecting each other,in the expectation that the growth of each individual employee
will lead to the continuous and sound growth of the company.
VALQUA is striving to further strengthen the development of
the management leaders that drive the organization througha training system that supports career formation irrespectiveof nationality, gender, or age; the creation of an environmentthat supports diverse and flexible ways of working; and radical
changes in consciousness and behavior throughout the entire
organization. I, too, would like to participate positively in these
activities.
As a female manager, and as a mother in my private life, I
will continue to take on challenges, whether in Japan or overseas,so that I can expand my own potential to the maximum degree
under “THE VALQUA WAY”. I also hope that seeing me engaging
in lively activity will raise the motivation of many employees, andthat as a result, female employees will aim to become female
managers.
In the future, I hope to playa role in managing the next
generation to help VALQUA
grow as a corporation that
contributes to the realization ofa sustainable society.

Sustainability
Management

When I first joined the company, there were no senior female
employees in Sales who had managerial experience, and there
were times when I struggled, having no one I could compare notes
with. However, I thought, “The lack of a precedent means that I am
free to establish one myself”, and while proceeding in consultation
with my superiors and colleagues, I strove to do things “my way”
with a consciousness of my own strengths. I was blessed with good

customers, superiors, and colleagues, and while receiving help fromthose around me, I busily strove to get results every day. I began tothink, “It is meaningful and worthwhile for the very reason that there
are no precedents”. I continued to take on the challenge of being
the first, and VALQUA provided me with a stage to act upon. I was
ultimately recognized for my efforts, and I was blessed in my private
life as well with marriage and children.
But although I returned to my previous position in the Sales
Division following maternity leave and childcare leave, I foundjuggling work and childcare to be a dilemma. I grew impatientand anxious, thinking, “It shouldn’t be like this.” Although I was
confronting a change in life stage, I was able to get throughthe difficulties by utilizing systems like flex time to the greatest
extent with the understanding and cooperation of my superiors,colleagues, and family. Looking back now, I think that at the time I
felt lots of expectations and pressures. However, rather than try tobe perfect to meet the expectations of everyone around me, I triedinstead to accept every opportunity and turning point positively,
and as a result of continuing to take on challenges in my own way
based on my characteristics, strengths, and experience, my efforts
led to my present position, where I think I have been able to set a
precedent as a female manager.
I am filled with gratitude toward VALQUA for allowing me to try
hard in my own way, and for valuing my efforts and recognizing thevarious challenges I have surmounted.

Continuing to strive toward the realizationof a sustainable society with VALQUA

Relationship toSociety

If there was no precedent for it,
I established one myself.
Met challenges “in my own way”,
thinking outside the box.

Grown up in China. Attracted to Japaneseapproach to “making things” while studying
in Japan. Joined VALQUA in 2009. Acquired
Japanese nationality in the course of acareer in the Sales Division in Japan thatcovered the first 12 years of her service.
Ms. Tanaka then took up the position of
Vi c e P re s i d e n t o f TA I WA N VA LQ UA
ENGINEERING INTERNATIONAL, LTD. in
2021. She presently devotes most of her
attention to performance management,compliance, the strengthening ofgovernance through internal controls, andthe education of local staff.

Overview

WAY U n d e r s t a n d i n g a n dPractice Activities”.

Fuku Tanaka

awkward dealing with each other. However, I did not have time
to worry about this, and I strove to provide guidance tailoredto the individual and to foster good communication while
respecting the values and characteristics of my subordinates.
As a result, we gradually developed into an organization with aculture of openness. Just when my subordinates were beginningto adopt the posture of taking on challenges independently, I
received an unofficial announcement from my superior statingthat I would be transferred to a subsidiary, TAIWAN VALQUAENGINEERING INTERNATIONAL, LTD., effective January 2021,
and that I would assume the position of vice president. I stillrecall my mind going blank for a moment. I decided to consider
it with an open mind. Yes, I could stay in an environment where
my knowledge and experience would get me by and my career
would be an extension of what had come before, but if I aimed
to take my career to a higher level, I would need to take on“challenges in a new area I had never experienced before”. After
receiving the unofficial announcement, I went home and talked
it over with my family. I was surprised that my husband did nothesitate to offer his support, saying, “I will quit my present job,so let’s go (to Taiwan) together!”
It was my first expatriate assignment, but I decided totake on the challenge, thinking that if my family was with me,
I could decisively take the course of action I wanted, whatever
the environment. For a while after arriving at my new postin Taiwan, I often felt anxious. My work seemed to consist ofnothing but things my experience in the Sales Division had
not prepared me for. Suddenly I was responsible for managing
people whose nationality, business practices, and values differedfrom my own, and not only did I need to manage performance,
I also had to handle financial-related matters, internal controls,
and the introduction of a core system – all areas in which I had
little knowledge or experience. With the guidance and adviceof the executives at the VALQUA head office and the presidentof TAIWAN VALQUA ENGINEERING INTERNATIONAL, LTD., I
carefully addressed the issues one by one, searching for solutions
myself through a thought process based on “THE VALQUA WAY”.
It was very difficult sometimes, but in the process of working
toward the same goal with the local staff, I became aware of theimportance of intercultural understanding, and of working inharmony while respecting the other, and I was able to improvemy skills and mentality as amanager. I am convinced thatmy valuable experience andself-growth in Taiwan wereconnected to the growth ofthe organization, and eventhe growth of the company.
Sitting in a circle with members of theSpecial Feature 2

I am from China. While studying in Japan, I found myself attracted
to the wonderful approach the Japanese took to “making things”,
so I began looking for a job in Japan. I hoped to serve as a bridge for
spreading Japanese technology and products throughout the world.
I took part in company information sessions at several companies I
was interested in, but the one that made the most impression on me
was VALQUA. VALQUA had leveraged a high level of technologicalability developed over long years under the Corporate Philosophy of“THE VALQUA WAY” into a bold global expansion, and I thought it was“an attractive company that would offer me the chance to come into
contact with diverse cultures and value systems, and to learn about
international business”. More than anything else, I got a sense, fromthe company information session and theinterview with executives, that men andwomen were treated equally when it cameto promotions, so I decided to join thecompany.
Once on board, I was assigned toa position in the Sales Division as thefirst female new graduate in sales, andI was placed in charge of the major
manufacturing plant industry, which
includes the main customers for seal With CEO Takisawa. Photoproducts. During my OJT, I received strict taken in commemoration of
being awarded the first placebut sometimes very kindly guidance, and I at the FY 2012 company-widecompetition, “THE VALQUA
steadily gained experience.

Vice President, TAIWAN VALQUAENGINEERING INTERNATIONAL, LTD.

Special Feature 1

At TAIWAN VALQUA ENGINEERING INTERNATIONAL, LTD. Takao HQ

11VALQUA Group Sustainability Report 2023

With 3 business areas – seal products business, high performance plastics products business,and silicon wafer reclaiming business – the VALQUA Group has a global reach.

Top Message

Global Network(6 companies)

VALQUA KOREA CO., LTD.

VALQUA SEAL PRODUCTS(SHANGHAI)CO., LTD.

★
●VALQUA(SHANGHAI)
TRADING CO., LTD.

VALQUA INDUSTRIES ★
●(THAILAND), LTD.

★
●TAIWAN VALQUA ENGINEERING
INTERNATIONAL, LTD.

VALQUA Group businesses

62,178million yen(As of end of
March 2023)（11.6％）

Asia

15,868（25.5％)

62,178million yen

Asia(As of end of
March 2023)

Japan

Seal products business

40,130(2.9%)

38,970916

1,874
people(As of end of
March 2023)

Japan

904

(48.2%)(48.9%)（62.7％）（64.5％）

12

These products, which take full advantage of the exceptional properties of functional resins, are used in many fields,
including semiconductor devices and industrial machinery. With strategic products for frontier industries and the plant
market as our main axis, we are improving our supply chain to provide value globally.

Silicon wafer
reclaiming business,
etc.
Mainly, silicon wafer reclaiming
business and development,
production, and sale ofproducts centered on H&S

While helping to protect the global environment with our silicon wafer reclaiming business, we will go on contributing
to a wide range of industries through the further development of our H&S business as an embodiment of new value
creation.

VALQUA Network

For other data, visit our website.
https://www.valqua.co.jp/

Mainly, the development,
production, and sale offluorocarbon resins and otherhigh performance plastics
products

Sustainability
Activities report

18,932（30.5％）

54

136（0.2％）

7,203（5.0％）

North America

Other

North
America

3,116* Including temporary employees (192) on averageHigh performanceplastics products
business

Sustainability
Management

Silicon wafer
reclaiming business,
etc.

High performanceplastics products
business▼ Number of employees by region* Rounded down to nearest 1 million yen

The main business line of the VALQUA Group is providing seals for use in piping and equipment in various industries.
We provide new customer value for the frontier industry, equipment, and plant markets through DX.

Relationship toSociety

Mainly, development,
production, and sale ofseal products for plants
and equipment, elastomer
products, and automotive
part-related seals

SINGAPORE PTE. LTD.

▼ Sales by region (¥M)

Product Lists
Seal products
business● VALQUA INDUSTRIES* Rounded down to nearest 1 million yen● VALQUA NGC, INC.

Overview

VALQUA VIETNAM CO., LTD.★
●●● VALQUA AMERICA, INC.

★ VALQUA, LTD.
★
●●

Special Feature 2★
●●• VALQUA SES CO., LTD.
• VALQUA TECHNO CO, LTD.
• VALQUA SEAL SOLUTIONS CO., LTD.
• KYUSHU VALQUA CO., LTD.
• VALQUA METAL TECHNOLOGY CO., LTD.
• VALQUA FFT INC.

★ Seal Training Centers (7 locations)● Overseas consolidated subsidiaries (9 companies)● Research and development bases (4 locations)

Special Feature 1

Consolidated subsidiaries in Japan▼ Sales by segment (¥M)

History of VALQUA

Overview of VALQUA Group businesses

13Digital solutions in the maintenance field

VALQUA Group Sustainability Report 2023

VALQUA’s Relationship to Society
Our “products & services” play an active role in all sorts of places.

VALQUA SPMTM

Equipment inspection
platform that enables
integrated managementof periodic inspections
and equipment condition
monitoring.
Easy periodic inspections
and facilities managementwith smartphones andPCs.

Cloud-based systems for plantand factory maintenance. The
perfect construction
management system! Makes
it possible to streamline
periodic repair work and tests.

SMART PLANT
MANAGEMENTA Rockets and satellites
J Steel production plants

Metal hollow O-rings

High performance sheet gasket
With far better performance than conventional products, thesesheet gaskets are widely used, particularly in plants that require
high temperature resistance.

A Rockets and satellites

B Photovoltaic power generation
Photovoltaic power
generation businessSpiral wound gasket

The Mega Solar power generation
facility on the premises of KYUSHUVALQUA produces clean energy
daily and contributes to thecommunity and the preservation of
the global environment.

These metal-reinforced products support safety operations inplants operated at high temperature and pressure.

K Semiconductor plants
power generation

Ships

G Chemical plants

J Steel production
plantsLow friction seal (LFR SEAL®)This seal material has outstanding slidability and was developedfor use in the rotating and oscillating parts of various kinds ofproduction equipment.

Processed fluorocarbon
resin products
The high electrical insulation
performance of these products isused to good advantage in devices
that eliminate the effect of lightningand control the amount of powertransfers.

C Transformer

D Mobile phone basestations (5G)

K Semiconductor plants
VALQUA is contributing to the reduction of the environmental
burden by using its proprietary knowhow to recycle the siliconwafers that have been used to check the operation ofsemiconductor manufacturing equipment by polishing andcleaning them so that they can be provided to customers likenew products.

D Mobile phone base stations (5G)
E Construction

H Portable media

machineryFluorocarbon resin lined tankservices

E Construction machinery
F Automobiles

O-ringHigh-performance elastomer
Products surface-treated with a special low-impurity rubber
maintain the clean environment that is indispensable tosemiconductor manufacture.

G Chemical plants

H Portable media

Seal Training Center (STC)

Thrust plate

Gasket for automatictransmission (AT)14

Fluorocarbon-resin envelop
gaskets

Adoption of highly chemical-resistantfluorocarbon resin in all parts thatcome into contact with fluids gives
these valves broad applicability to
fluid control.

Made of highly chemical resistantmaterial, these gaskets prevent liquid
chemicals and gasses from leaking
through the joints of piping andequipment.

Fluorocarbon resin lined
product
These pipes use the characteristicsof fluorocarbon resins – chemical
resistance and surface smoothness– to ensure the purity of the fluidsthat pass through them.

Fluorocarbon resin tapeWith high electrical insulation andoutstanding processability, this tapecontributes to miniaturization andthe improvement of performance intelecommunications equipment.

Seal Training Vehicle (STV)
Seal Training Vehicle is a mobile unit filled withtraining equipment for educating customers on
gasket installation.

These are high performance elastomer and metal seals with aunitary structure. With high sealability, they are used in transfer
gate valves for silicon wafers.

M Medical institutions

L ShipsGland packing

Fluorocarbon resin cut tape

These are products that prevent
leakage from around the working
axis, and they are used mainly inrotary pumps and valves that fulfill
the function of conveying fluids orblocking their flow.

Advanced technology is used to
cut fluorocarbon resin tape to
produce a product with superior
air-tightness and slidability thatis used in syringe plungers, etc.

Fluorocarbon resin lined
ISO container
These pipes use the characteristics offluorocarbon resins – chemical
resistance and surface smoothness –to ensure the purity of the fluids thatpass through them until they reach
their destination.

VALQUA Network

These are the gaskets used in
the hydraulic control device(valve body) that controls the
AT. By sealing the oil within
the device, they make possible
smooth, responsive gearchanges.

Fluorocarbon resin linedball valve

Bonded gate seal

Sustainability
Activities report

STC shares VALQUA’s seal engineering technology withcustomers, connecting it to safe plant operation andreliable equipment operation. STC also provides avenue for human resources development, withclassroom lectures on the selection of seal materials
and appropriate methods of use, as well as experiencebased training facilities for practical training using asimulation of pipe flanges in actual factory settings.

When inserted into the gap
in hinged moving parts of
excavators, etc., thrust plates
play roles such as adjusting
the gap, preventing squeaking,and preventing galling.

F Automobiles

I Seal engineering services

Sustainability
Management

These are typical static anddynamic seal products. They
accommodate a wide range
of industrial needs thanks to
the use of rubber material
well suited to the application.

Liquid chemical tanks with inner linings consisting offluorocarbon resin sheets are indispensable in the storage andtransport of the ultra-high purity chemicals used insemiconductor manufacture.

I Seal engineering

Relationship toSocietyS u b s t ra t e m a t e r i a l w i t h t h eoutstanding electrical characteristics
and weather resistance ofpolytetrafluoroethylene (PTFE)
contributes to safe, rapid, highcapacity data communication in
antennas and self-driving vehicles.

Overview

Reclaimed silicon wafer

M Medical institutions
Fluorocarbon resin material

Special Feature 2

L
B Photovoltaic

C Transformer

Special Feature 1

These are high performance gaskets
that can even prevent leakage inouter space. They are used not only
in rockets and satellites, but also inequipment that requires hightemperatures, high pressure, andhigh vacuum.

Top Message

MONiPLAT TM

History of VALQUAVALQUA with Society

15

VALQUA Group Sustainability Report 2023

Under the Corporate Philosophy of “THE VALQUA WAY”, the VALQUA Group is contributing to therealization of the SDGs and a sustainable society by making proactive efforts to address sustainability

The VALQUA Group has positioned “sustainability” as an important business challenge, and in 2022, it changed
the name of the “VALQUA Group CSR Promotion Committee” to the “VALQUA Group Sustainability Committee”.

materialities through business activities.

Under the Corporate Philosophy of “THE VALQUA WAY”, the Group is steadily executing “VALQUA Sustainable
Action” to contribute to the richness of the human race and global environment.

Efforts to contribute to SDGs

Solving social issues through our main
business (H&S)

Defense• Support for ballroom dancing• Activities that contribute to the local
community

The VALQUA Group considers sustainability to be “realizing
sound and sustained growth and a sustainable society under the
Corporate Philosophy of ‘THE VALQUA WAY’”.
The VALQUA Group will continue to promote sustainability
activities through business activities and pursue the creation ofvalue and improvement of quality in order “to contribute to therichness of the human race and global environment”.

1. R
 ethinking materiality that contributes to sustainability
management
 etting concrete goals and managing progress for each
2. S
materiality
 xpanded disclosure of the status of sustainability
3. E
activities that lead to management strategy throughsustainability reports, etc.

From “CSR” to “sustainability”

Organization for promoting 
sustainability

In April 2022, in order to accelerate its sustainability
a c t i v i t i e s , VA L Q U A e x p a n d e d i t s f o r m e r “ C S R ” i n t o“sustainability” and strengthened its system, changing the nameof the system of promotion from the “VALQUA Group CSR
Promotion Committee” to the “VALQUA Group Sustainability
Committee”. Moreover, in the future it will pursue the following
activities, promoting efforts to realize a sustainable society as

The “VALQUA Group Sustainability Committee” is positioned
as an important body for discussing the sustainability activitiesof the entire Group, and it is composed of the executive officersof the VALQUA Group with the Managing Executive Officer as its
chairperson. Regular meetings are held every half-year, as wellas on an ad hoc basis, and the results are reported at theManaging Directors Meeting every half-year.

Strengthening management foundation

Overview• Efforts to solve social issues through products andservices

Activities that
contribute to society“VALQUA Sustainable Action”.

Special Feature 2

OffenseSustainability for VALQUA

Special Feature 1

As part of the “active engagement in ‘environment, society,and corporate governance’ in becoming a better global citizen”
that the VALQUA Group established as its corporate image forthe 100th anniversary of its founding (2027), the Group has

identified 6 SDGs among the total of 17 to which it thinks it cancontribute through its corporate activities as a whole. “Activities
that contribute to society” has now joined our offense strategy(“solving social issues through our main business (H&S)”) and
our defense strategy (“strengthening our managementfoundation”) as the third axis for promoting these activities.

Top Message

Sustainability Management

History of VALQUA

Philosophy and Policy on SDGs

▼ Sustainability organization chart

Relationship toSociety

Representative Director,
Chairman & CEO
Managing Directors Meeting• Efforts include strengthening governance, concern forenvironment in business, supply chain management,
and human resources development

Sustainability Secretariat

Sustainable Development Goals (SDGs)
Corporate
GovernanceGroup

CommunityGroup

Procurement
Group

ComplianceGroup

Environment
Group

Safety and
Health Group

Human Rights
and Labor
Practices Group

Quality andCustomer
Value Group

Sustainability
Activities report

The Sustainable Development Goals (SDGs) were adopted by the United Nationsin 2015 as goals that should be achieved by 2030 in order to solve the problems
of international society. They consist of 17 goals and 169 targets toward which
not only governments but also citizens and private corporations are expected tocontribute.

Sustainability
Management

VALQUA Group
Sustainability Committee

VALQUA Network

16

17

VALQUA Group Sustainability Report 2023

History of VALQUA

Sustainability Materiality
The VALQUA Group has established 16 items of materiality with the 8 priority areas of corporate governance,compliance, environment, safety and health, supply chain management, human resources and human rights, customer

Top Message

satisfaction, and community, and it is promoting concrete and proactive efforts along the lines of the materiality items.
In October 2022, to reflect an awareness of human rights due diligence in our activities, we made changes in
two materiality themes, specifically, “Handling of conflict minerals, etc.” and “Respect for human rights(including human rights due diligence)”.
Basic policy

Main efforts
1) Activities to spread “THE VALQUA WAY” throughout the entireGroup resentations on personal understanding and practice of “THE
2) P
VALQUA WAY” at each level3) A ctivities to recognize visionary management inside andoutside of the company

 romotion of Group’s global activities
03. P

To maintain solidarity in business activities throughout the Groupas global expansion leads to increases in the number of employeeswith diverse backgrounds and values

Promote the realization of the Ten Action Principles of “THE
VALQUA WAY” throughout the Group and strengthen business
continuity to lead to the solution of global social issues

Efforts to promote sustainability activities and upgrade
information throughout the entire Group

04. D
 ialog with stakeholders

To deepen mutual understanding through constructive dialog toincrease our corporate value, or to promote the solution ofcommon social issues

Realize the Ten Action Principles of “THE VALQUA WAY”
through constructive dialog with various stakeholders, leading
to increases in our corporate value, strengthening of business
continuity, and solution of social issues

Constructive dialog with various stakeholders

05. P revention of corruption and bribery

To prevent not only bribery but also actions that raise suspicions

Conduct business on the basis of the “Compliance Handbook”
under the Action Principle of “Respect compliance and workwith full honesty”

Strengthening of risk compliance, including prevention ofcorruption and bribery, and efforts to expand information
disclosure

06. L egal compliance

To promote thorough compliance management in order to fulfill
our social responsibility and meet expectations

Conduct business on the basis of the “Compliance Handbook”
under the Action Principle of “Respect compliance and workwith full honesty”

Efforts to increase the effectiveness of legal compliance andexpand disclosure ompliance with environment-related laws and
07. C
ordinances, etc.

To avoid violation of increasingly strict pollution prevention laws,
which could adversely impact our business activities

Conduct business on the basis of the “Compliance Handbook”
under the Action Principle of “Respect compliance and workwith full honesty”

Thoroughgoing environmental risk compliance

08. P re v e n t i o n a n d re d u c t i o n o f l e a k a g e o fenvironmentally hazardous substances

To use advanced technology to contribute to the realization of alow-carbon society through products and services that lead to
reduction of environmentally hazardous substances

Provide products and technology that contribute to thesolution of social issues under the Action Principle of “Aim forenvironmentally friendly production”

Combatting pollution and other social issues by developing anddeploying products and services

09. R eduction of environmentally hazardous
substances in businessTo engage in business activities that minimize deleterious effects
on the environment, in order to fulfill our social responsibilities asa manufacturing company

Give consideration to environmental assets in our activities
under the Action Principle of “Conserve and utilize resources
effectively”

Environmentally hazardous substance reduction

Safety and health

10. Occupational health and safety

To lead to employee happiness and the development of businessby creating an environment that considers health and safety and iseasy to work in

Create an environment that is easy to work in under the Action
Principle of “Always treat health and safety with top priority”

 romote occupational health and safety by training human
1) P
resources to be safety conscious and making risk assessments
more effective2) Aim for health management. Promote health education for
employees, along with healthy habits that improve mental andphysical healthSupply Chain Management

11. Handling of conflict minerals, etc.

To solve problems that have become more complex with theglobalization of the supply chain

Conduct business on the basis of the “Basic Procurement
Policy” under the Action Principle of “Aim for environmentallyfriendly production”

Education and promotion of procurement activities based on CRS
Procurement Guidelines

12. E
 nsuring of the diversity of human resources

To lead to sound and sustained growth by creating an environmentthat respects the individuality of diverse human resources andallows them to grow while increasing their own value

C re a t e a n e n v i ro n m e n t t h a t re s p e c t s t h e d i v e r s i t y,
personalities, and individuality of employees and makes it easy
for them to demonstrate their abilities under the Action
Principle of “Hold respect for individuality and personality”

Promotion of the activities of diverse human resources andpromotion of flexible ways of working

13. R espect for human rights(including human rights due diligence)

To give full consideration to human rights through enlightenment
activities based on the Action Principle of “Hold respect forindividuality and personality”

Conduct business activities in line with the “VALQUA Group
Basic Policy on Human Rights” under the Action Principle of“Hold respect for individuality and personality”

Enlightenment activities to promote understanding of various
international norms for human rights

14. Human resources development

To cultivate human resources that can contribute to the expansionof our business

Cultivate human resources that can continue to meet new
challenges by thinking for themselves under the Action
Principle of “‘Learn and grow’ with a spirit to face challenges”

1) C ultivation of the VALQUA Person2) D evelopment of core Group managers
 evelopment of core base managers
3) D
4) H
 R cultivation for each division and company

Customer Satisfaction

15. Improvement of quality and customers’ safety
and peace of mind

To provide peace of mind and satisfaction by solving safety-related
problems for customers in Japan and overseas together

Contribute to safety and peace of mind not only for thosewithin our own company but also for customers in Japan andoverseas under the Action Principle of “Always treat health andsafety with top priority”

1) Information provision and services for product quality
management and safe use2) D eployment of products and services that promote the safety
and peace of mind of customers

Community

16. P romotion of sports, culture, and the arts Exist
with harmony to the community

To contribute to the creation of a safe, affluent society where
people can have peace of mind through the promotion andsupport of sports and sustainability activities rooted in thecommunity

Promote and support sports and make social contributions
rooted in the community under the Action Principle of “Exist
with harmony to the community”

 ontributing to society through support for the growth of1) C
ballroom dancing
 ontributing to society through greening of area around office2) C
buildings and through donations

Compliance

Environment

Human Resourcesand Human Rights

VALQUA Network

Make efforts to strengthen the system of global governance andexpand information disclosure

Sustainability
Activities report

Construct a management system based on “THE VALQUA
WAY” and strive to perfect it

Sustainability
Management

Because it is important to have an effective decision-making
mechanism for fulfilling our social responsibilities in corporate
governance

Relationship toSociety02. S trengthening of corporate governance

Overview

To aim for sound and sustained growth through visionary
management with the Corporate Philosophy at its center

SDGs to which thiscontributes

Special Feature 2

01. S
 pread of the Corporate Philosophy

Aim for sound and sustained growth through visionary
management with the Corporate Philosophy of “THE VALQUA
WAY” at its center

Corporate governance18

Why? For what purpose?

Special Feature 1

Materiality

19

VALQUA Group Sustainability Report 2023

The VALQUA Group identified materialities that were priorities for both the stakeholders and theestablished targets for each materiality and are working toward them. Moreover, some of ourmaterialities have been changed as a reflection of our 2022 business strategy “NF2023”.

Recognition of social
issues

We first identified social issues by referring to international standards and guidelines suchas the GRI Standards, ISO26000, the UN Global Compact, Sustainable Development Goals(SDGs), and RBA Code of Conduct.

Step

Identification of
stakeholders’ priorities

We then identified stakeholders’ priorities by analyzing evaluation organizations’ surveys
and customer questionnaires to index the degree of attention that stakeholders pay to thesocial issues identified in Step 1.

1

2

Step

3

Step

4

5

We then created a matrix chart mapping the social issues identified in Step 1 with“stakeholders’ priorities” identified in Step 2 on one axis and “VALQUA Group priorities” on
the other to extract the items with the highest priority, which we defined as our materialities.

Deciding materialities

The VALQUA Group materialities were decided upon with the approval of the Managing
Directors Meeting in FY 2019.

PDCA management andreassessment ofmaterialitiesIn

April of 2022, the materialities were reassessed from the standpoint of giving greater
emphasis to the relationship between management strategy and the business plan. In
October of the same year, our efforts in the area of human rights due diligence wereintensified by changing two of the materiality themes to “Handling of conflict minerals,etc.” and “Respect for human rights (including human rights due diligence)”.

01 Spread of the Corporate Philosophy
02 Strengthening of corporate governance
03 Promotion of Group’s global activities
04 Dialog with stakeholders

Compliance
05 Prevention of corruption and bribery
06 Legal compliance
07 Compliance with environment-related laws andordinances, etc.

Environment
08 Prevention and reduction of leakage ofenvironmentally hazardous substances
09 Reduction of environmentally hazardous substancesin business

Safety and health
10 Occupational health and safety

Supply Chain Management
Human Resources and Human Rights◆ Solving social issues through our main business (H&S)● Strengthening our management foundation ■ Activities that contribute to society● Reduction ofenvironmentally hazardous
substances in business■ Conserving biodiversity● Fair marketing andinformation provision● Strengthening
information security● Improving disclosure andreliability of ESG information● Risk management (BCM/BCP)● Supply Chain Management● Fair trade

VALQUA Group’s priorities
20* Level of priority does not differ within each quadrant

Community
16 Promotion of sports, culture, and the arts / Exist withharmony to the community

VALQUA Network● Strengthening of corporate governance● Dialog with stakeholders● Prevention of corruption and bribery● Human resources development◆ Improvement of quality and customers’safety and peace of mind
■ Promoting sports, culture, and the arts /Exist with harmony to the community

15 Improvement of quality, and customers‘ safety andpeace of mind

Sustainability
Activities report● Brand management● Setting materialities
and sustainability
management● Ensuring of the diversity ofhuman resources● Respect for human rights(including human rights due
diligence)● Handling of conflict minerals,etc.

Customer Satisfaction

Sustainability
Management

Stakeholders’ priorities● Creating good labormanagement relations● Spread of the Corporate Philosophy● Promotion of Group’s global activities● Compliance with environment-related
laws and ordinances, etc.
● Legal compliance◆ Prevention and reduction of leakage ofenvironmentally hazardous substances● Occupational health and safety

12 Ensuring of the diversity of human resources
13 Respect for human rights(including human rights due diligence)
14 Human resources development

Relationship toSociety11 Handling of conflict minerals, etc.

Mapping of social issues

Overview

Step

Mapping of social issues
and identification ofmaterialities

Corporate governanceSpecial Feature 2

Step

Special Feature 1

Process of defining the sustainability materiality matrix

Here we introduce our 16 materiality themes, grouped into 8 priority areas.

Top Message

VALQUA Group by extracting the social issues that have relevance to our Group. We then

VALQUA Group’s
Sustainability Activities
in 2022

History of VALQUA

Defining the sustainability materiality matrix

21

VALQUA Group Sustainability Report 2023

Corporate governance

SDGs to which this contributes

02

01 Spread of the Corporate Philosophy

02 Strengthening of corporate governanceCorporate governance

As a pioneer in seal engineering, the VALQUA
Group has constructed a management system
for transparent, fair, rapid, and bold decisionmaking in order to increase its corporate value
through sustained growth of the corporation
under the Corporate Philosophy of “THE VALQUA
WAY”, and it continually pursues optimal
corporate governance and strives to perfect it.
■ Status of corporate governance▼ Composition of Board of Directors and Board of Auditors (as of June 1, 2023)
including 3 outside directors (1 man, 2 women)■ E nsuring the transparency and 

including 2 outside auditors (2 men)reliability of business▼ Corporate governance organization chart
General Meeting of Shareholders
Appoints/
Dismisses

AuditsBoard of Auditors/Auditors

Cooperates

Directs/Supervises
Internal
Audit Division
Audits

Accounting Auditor
Accounting
auditsAdvice（2023年6月1日現在）

22

VALQUA Network

Legal Advisor

Executive officers
Each division/ Each Group company

Reports

Sustainability
Activities report

Appoints/Dismisses/Supervises
Reports
Representative Director,
Chairman & CEO
Representative Director,
President & COO
Compliance
Committee

Appoints/
Dismisses

Sustainability
Management

Appoints/
Dismisses

We are striving to improve and promote ourinternal control system by constructing highly
transparent business processes and an
appropriate risk management system. A “Basic
Philosophy regarding the Internal Control
System” based on the Companies Act, etc., wasadopted by the Board of Directors, and thecontent is reviewed as necessary in order to
respond to changes in the external environment
and internal environment. Moreover, to comply
with the internal control reporting system formaking financial reports based on the Financial
I n s t r u m e n t s a n d E xc h a n ge Ac t , we h ave
constructed an internal control system andmaintain, evaluate, and improve internal rules
and regulations and business processes.
As part of this, our financial reports aredisclosed after receiving the unqualified opinionof an auditing corporation on the internal control
system reports describing the validity of thefinancial reports, and we are continuing to makeefforts to ensure the reliability of the financial
reports.

Relationship toSociety

3 auditors (3 men),

Auditors

Board of Directors/Directors

Company-wide competition in January 2023 Practice Presentation of core managers in Scene of the conference room in Vietnam where(scene of presentation)
October 2022 (award ceremony)
the CEO “THE VALQUA WAY” Forum was held in
ASEAN in August 2022 (Held online in Japan,
Vietnam, Singapore, and Thailand)Internal control system

7 directors (5 men, 2 women),

Directors

An Internal Audit Division independent oft h e o p e ra t i n g d i v i s i o n s u n d e r t h e d i re c tjurisdiction of the Board of Directors has been
established to perform internal audits of allof the Group‘s business activities. Based on
the annual auditing plan, the Internal Audit
Division conducts audits from a broad rangeof perspectives, including internal control,
compliance, and risk management, and performs
evaluations and makes proposals.

Overview

In order to respond rapidly and unerringly tosudden changes in the business environment,
we have established an agile group management■ Internal Audit Division

Special Feature 2

At the VALQUA Group, the Corporate Philosophy common to our Group, “THE VALQUA WAY”, forms the foundation for our daily
activity as our compass and code of conduct. Each employee of the VALQUA Group in the eight countries and regions where we have apresence determines how the mental outlook of the Group is relevant to their own work and brings a consciousness of problem
identification and solution to their work in a way that leads to improvements and reforms in the work itself.
Moreover, in order to further spread “THE VALQUA WAY”, we hold the Practice Presentation annually as a place for sharing ouractivities throughout the year. This Practice Presentation is a forum for making presentations on how each employee has translated “THE
VALQUA WAY” down to the level of their own work.
After the preliminary presentations held within Japan at each level of the hierarchy, the company-wide competition ofrepresentatives who were selected at the preliminary presentations is held every January. The 15th competition was held in FY 2022. The
Practice Presentation of core managers held each year in October has been divided into two parts, one for presidents of affiliatedcompanies and the other for personnel at the level equivalent to general manager, so that the activities and the content of thepresentation reflect the participants‘ work responsibilities. The Presentation was held remotely because of the COVID-19 pandemic in FY
2020 and 2021, but in FY 2022 we were able to hold it in person for the first time in three years.
In FY 2022, we newly established a promotion department known as the “Corporate Philosophy Division” under the new mid-termbusiness plan “New Frontier 2023” (NF2023) to promote visionary management. CEO Takisawa, who considers deeply instilling “THE
VALQUA WAY” in all Group employees to be indispensable to ensuring “sound and sustained growth”, had been traveling to eachgeographical area since FY 2019 to hold “CEO Forum to Promote the Permeation of THE VALQUA WAY Throughout the Workforce” butwas forced to stop because of the effects of the pandemic. The Forum held in the ASEAN region in August 2022, which was to have been
the first face-to-face meeting, suddenly had to be switched to an online format because of the effects of the 7th wave of COVID-19, but
in March 2023, it was finally possible to hold a face-to-face forum in Taiwan for the first time in three years.
In order to realize the “Value & Quality (Create value and improve quality)” that is the Core Principle represented by our corporate
name, the VALQUA Group promotes mutual understanding through a company-wide competition known as “MY VALQUA WAY”, which
focuses on the strengths of each employee. The things that we have learned in the unprecedentedly harsh environment of the past few
years, during which the human race has grappled with the COVID-19 pandemic and other never-before-experienced challenges, havealso formed the basis for new efforts under the banner of “OUR VALQUA WAY” that evoke a consciousness of the team and aim totransform VALQUA into “a challenging company that challenges the future and the unknown” to further contribute to the richness of thehuman race and global environment.
The entire VALQUA Group will continue to promote visionary management resolutely.

■ Basic philosophy

organization that introduces an executive officer
system and separates the roles of directors fromthose of executive officers. Moreover, by having
auditors, including one attorney and one
certified public accountant, audit the executionof business by the directors and executive
officers, supervisory and auditing functions
highly specialized to management are fulfilled.

Special Feature 1

Activities to promote understanding of “THE VALQUA WAY” and put it into practice

Top Message

01

History of VALQUA

Corporate governance

23

VALQUA Group Sustainability Report 2023

Compliance05

03 Promotion of Group‘s global activities■ P romotion of sustainability 

activities■ P romotion of SHE activities

Promotion system forsafety, health, andenvironment (SHE)
related activities
https://www.valqua.co.jp/
social/safety_health_environment/

Business partners(suppliers)

The VALQUA Group promotes fair and impartial CSR procurement
based on legal compliance, concern for the environment, and mutual
trust.

National governments
and local governments

The VALQUA Group strives to obey laws and disclose information.

Local community

24

The VALQUA Group strives to create a work environment that enables
employees to exhibit their capabilities to the greatest possible extent,
based on the assurance of safety and health, respect for human rights,
and promotion of diversity.
Aiming for a symbiosis with the global community and the local
community, the VALQUA Group strives to reduce our environmental
burden and contribute to society.

Board of Directors Meeting● IR activities in general: dialog with securities analysts, investors, andstock market personnel / holding General Meeting of Shareholders andmeetings to explain settlement of accounts / issuing IR tools anddocuments● Purchasing activities in general: meeting with customers / CSR● Various notifications, various conferences● Employees engagement activities in general: intranet / conducting

employee engagement surveys / various types of training / support for
self-development training / holding joint labor management conferences /handling notifications through internal whistle-blowing system /establishing Corporate Ethics Hotline● Social contribution activities in general: contributing to society throughsupport for sports / Local Community Thanksgiving Day / volunteer
activities by employees / dialog with local community and NPOs, anddonation activities

I n o rd e r t o e n s u re l e g a l c o m p l i a n c ethroughout the entire Group, the VALQUA Group
conducts surveys of related laws, not only within
Japan, but also as they apply to our subsidiaries
overseas, while receiving support from law
offices, consultants, and services that provide
legal information, so that its business practices
will be in compliance with the law. The entire
Group maintains complete readiness to comply
with laws and ordinances that greatly differ incontent in each country and region.

Prevention of corruption

Managing Directors Meeting■ Thorough prevention of bribery

Risk Management Committee
Secretariat

Procurement Guidelines / conducting CSR procurement questionnaires

companies in Japan and overseas

Quality
risks

Trade
control risks

Legalviolation
risks

Safety,health, andenvironment
risks

Economic
security
risks

Information
securityrisks

Quality
Assurance
Committee

SecureTransaction
Management
Committee

Compliance
Committee/
Compliance
PromotingCommittee

SHE
Committee

Economic
Security
Committee

Information
Security
Committee（2023年6月1日現在）

In the VALQUA Group, we make sure that all
employees are fully informed of the need toprevent bribery, and we review and revise ourrules as necessary in order to appropriately
accommodate regulations on bribery in Japan andoverseas. Moreover, we take rigorous measures
to prevent bribery by conducting audits of theentire Group, making no distinction between
members in Japan and overseas.

VALQUA Network

Employees▼ Risk management system■ L egal compliance in Group 

Sustainability
Activities report

The VALQUA Group discloses information in a fair, appropriate, andtimely manner and, on the basis of this information, proactively
Shareholders and stock
engages in a constructive dialog with shareholders and stock market
market personnel
personnel. The opinions obtained from the dialog are then utilized tomake sustained improvements in corporate value.

gatherings for store personnel / holding exhibitions / handling inquiries /
conducting CS questionnaire surveys / safety data sheets (SDS) /catalogues of various products / issuing customer support tools andtechnical data

With “Through Creative Technology” as oneof its Corporate Principles, the VALQUA Groupaims to be a “true solution provider” that
integrates this creative technology with service.
The Intellectual Property Division properly protects
the value created through corporate activities
and supports the provision of products andservices that lead to solutions of the customer‘s
problems. It also maintains internal rules andsystems that respect the intellectual property
rights of others, conducting exhaustive surveys
at each stage of research and development toensure that our company‘s products and services
do not infringe upon the intellectual property
rights of third parties. Under a system ofcooperation between the Intellectual Property
Division and the Research & Development
Division, these surveys are conducted globally toensure that intellectual property rights arerespected not only in Japan but overseas as well.

Sustainability
Management

As an H&S company, the VALQUA Group aims to realize themaximization of customer value through true service solutions from thestandpoint of the customer throughout the entire value chain, including
development, procurement, production, and sales.

Main methods of communication● Business activities in general: daily business activities / holding social

intellectual property rights

Relationship toSociety

The VALQUA Group has established the“Risk Management Committee” to strengthenrisk management. The Committee centrally
manages the risks that the Group incurs in thecourse of doing business, which are becoming
more diverse with the rapid changes in thebusiness environment in Japan and overseas andthe expansion of the Group‘s business area.
To enable us to swiftly gain control andrespond as a Group to events that threaten thecontinuity of business, such as major natural
disasters, we created a Business Continuity Plan
(BCP) Manual and began implementing it in

To achieve sound and sustained growth, the VALQUA Group aims to build relationships of trust through communication
with all of our stakeholders under “THE VALQUA WAY” while continuously enhancing our corporate value.

Customers

 anagement of 
■ M

■ Risk management system

04 Dialog with stakeholders
Engagement with stakeholders■ Basic philosophy

In order to maintain relationships of trustwith stakeholders and stably continue to dobusiness, the VALQUA Group has constructed amanagement system that can accurately assessand control diversifying risk and its impact.
We have been aiming for the reconstructionof our business foundation by increasing profits
in existing business areas through selection andconcentration and acquiring new business areas.
Moreover, we have been making efforts toenhance risk management and autonomouscompliance at the level of organizational units bycodifying them in an annual policy.
Even in the new mid-term business plan
NF2023 that came into effect in April 2022, weare continuing to make efforts to implement risk
management at the level of each organizational
unit and to strengthen autonomous compliance.

04
Stakeholders

2020. We will go on strengthening our risk
management to prepare for ever diversifying risk.

Overview

A Group SHE Committee has been organizedin the VALQUA Group to centrally manage safety,
health, and environment (SHE) related activities.
The SHE Committee is composed of the Chief
Executive Officer as Committee Chairperson, theChief Operating Officer as Vice-Committee
Chairperson, and the executive officers in chargeof each Group company or business office. The
SHE Committee meets at least once a year todecide upon the annual policy and activity planfor VALQUA Group SHE activities and to confirm
the status of activities. The entire Group is
involved in SHE activities, with deployment by
SHE teams in each company or place of business.

Risk management

Special Feature 2

The VALQUA Group has a history of concerted
action on the part of Group companies in Japanand overseas to promote “activities revolving
around the concept of an H&S business”, “support
for sports”, “Local Community Thanksgiving Day”,
and other activities based on the Corporate
Philosophy of “THE VALQUA WAY”.
Since 2021, we have been strengthening ourefforts to contribute to the SDGs by promoting
activities with 3 axes, adding “activities that
contribute to society” to our offense (“solvingsocial problems through our main business(H&S)”) and our defense (“strengthening ourmanagement foundation”).
In April 2022, VALQUA upgraded its “CSR”
to “Sustainability” and strengthened its systemof promotion, renaming the “VALQUA GroupCSR Promotion Committee” as the “VALQUA
Group Sustainability Committee”. In October of2022, it also changed some of its materialities toplace more emphasis on the relationship with
NF2023 and promote compliance with “humanrights due diligence”.
In the future, we will come together as aGroup to promote sustainability activities toward
the solution of various social issues, and we aremaking efforts to disclose those activities.

Special Feature 1

Sustainability activities 
and SHE activities

05 Prevention of corruption and bribery

Top Message

03

SDGs to which this contributes

History of VALQUA

Corporate governance

25

VALQUA Group Sustainability Report 2023

Compliance

06 Legal compliance

Compliance

The “Compliance Manual” was establishedin 2003 and translated into 6 languages(Japanese, English, simplified Chinese

As a mechanism whereby all Group
employees can engage in reporting, consultation,and notification related to laws and internal
regulations, we have established several lines ofcommunication: (1) opinion boxes, (2) internal
consultation liaisons, (3) Direct Line to CEO, (4)07Compliance with environment-related laws
07 and ordinances, etc.

Board of Directors

Chairperson: CEO
Committee members: each director (excluding outside directors)
Directs/Supervises

Compliance Promoting Committee
Chairperson: CCO
Members: executive officers
Directs/Supervises

Each division/ Each Group company（2023年6月1日現在）

Production-related companies in Japan
share a list of laws and ordinances specified by
ISO 14001, and they continually engage inactivity to prevent oversights and differences ininterpretation between companies by verifying
points of change monthly. Even with respect tolaws specified by each of the overseas production
companies, monthly points of change have beenshared within the Group as a whole. Internal
auditing systems for legal compliance were
established in each production company and arein operation. They are promoting continued
improvement by responding to noncompliancediscovered in internal auditing.

VALQUA Network

Reports

and auditing of legal compliancesystem for each production-relatedcompany

Sustainability
Activities report

Reports■ M aintenance, operation,

Sustainability
Management

Compliance Committee

Although delayed in part by the effects of
the COVID-19 pandemic, tightening ofenvironmental regulations has continued globallyin FY 2022. In spite of this, we have been able tomaintain our record of zero violations ofenvironmental laws for another year at our
production-related companies in Japan andoverseas. We think this reflects the fact that our
production companies consistently practiceproactive management to anticipate legal
requirements, along with continuous follow-up
activities. As a result, our ability to comply withenvironmental regulations has improved.
There is a global trend toward stricter
regulation of the chemical substances involvedin our products, but our efforts to anticipate
regulations by proactively reducing the use ofchemical substances in our manufacturing
processes have gotten results.

We intend to continue solid compliance withstricter regulations through such measures in
the future.

Relationship toSociety

Environmental risk 
management■ Framework for activity▼ Compliance system26

and notification system

Overview■ Compliance Handbook■ R eporting, consultation,

Special Feature 2

In the VALQUA Group, “compliance” does notstop with legal compliance. We see complianceas striving to respond to the demands and trustof stakeholders and win the trust of society byproactively complying with business ethics that
hold us to an even higher standard than laws
and regulations and practicing corporate
behavior that contributes to society and gives
consideration to the environment, so as to set an
example for other corporations. We firmly
believe that understanding the importance of
this kind of compliance and putting it into
practice is something that promises constant
growth and development for the VALQUA Group.

Special Feature 1■ Basic philosophy

characters, Korean, Thai, and Vietnamese). It has
been used as the manual that sets forth
guidelines for employee duties that all
employees throughout the entire Group must
understand and comply with. The content of theCompliance Manual was later greatly expanded
as the “Compliance Handbook” to incorporate
concrete examples and check sheets that reflect
the social environment and changing demands.
The revised Japanese Edition was issued in May
2020, and the various foreign language editions
followed in February 2022. As the company
expanded in Japan and overseas, we issued new
publications for specific levels of the hierarchy.
The guide for managers and leaders, “Action
Handbook for the Prevention of Harassment”,
was issued in May 2020, followed in November
2020 by a publication for directors and officers:“Corporate Management and Compliance –Management Responsibilities and Important
Issues for Directors and Officers”.
These publications are used as guidelines
for all employees throughout the Group to follow
in compliance activities with a recognition of
their own roles.

We h a v e e s t a b l i s h e d a C o m p l i a n c eCommittee with the CEO as chairperson andCompliance Promoting Committee under it, andwe strive to maintain and improve the Group‘scompliance system with the Chief Compliance
Officer (CCO) appointed as the highest-ranking
p e rs o n re s p o n s i b l e fo r t h e p ro m o t i o n o fcompliance at its center.

E x t e r n a l C o r p o ra t e E t h i c s H o t l i n e ( i n 6languages), and (5) external attorneys. By
operating these independently of the usual chainof command, we ensure the anonymity of
information and see to it that no employees are
disadvantaged by engaging in reporting ,consultation, or notification.
Whereas these systems were utilized ten or
more times in each of FY 2018 and FY 2019, use
has since tended to decrease, with only 4 suchcases annually from FY 2020 to FY 2022. This isthought to reflect the fact that increased efforts
are being made in each division and subsidiary toaddress various concerns and find solutions
before they develop into problems. We think thatconcerns are being properly dealt with before
they reach the stage of reporting, consultation,or notification. However, we will continue
devoting efforts to improving the effectiveness ofthe various lines of communication.

Top Message

06■ Compliance system

History of VALQUA

Compliance

27

VALQUA Group Sustainability Report 2023

Environment

SDGs to which this contributes■ E
 nvironmental burden accompanying

business activities in FY 2022

based society

Information disclosure
based on TCFD
recommendations
https://www.valqua.co.jp/
social/environment/

09

Reduction of environmentally hazardous
09 substances in business▼ Material flow

INPUT
EnergyPower from solar

146,800ℓ
76,939ｍ ³

Natural gas

171,829kg

●

●

●

E
 nvironmental data
(GHG, waste, chemical substances, etc.)E mployee data(Number of regular employees,
separated into men and women;
number of temporary employees, etc.)O ther (human rights, welfare)

Kerosene

108,180ℓ

Light oil

25,600ℓ

Gasoline(for company cars)

16,568ℓ

Water use Total: 411,804m³
Tap water

87,649ｍ ³

Industrial water, etc.

324,155ｍ ³

VALQUAGroup
Business
Activities

629t
Total: 861t

Waste plastics

532t

Sludge111t

Wastepaper

103t

Other (waste acid, waste alkali,
waste oil, wood chips, waste
textiles, scrap metal, burnt
115t
residue)
Chemical substances*– 21 types
242,743kg* Chemical substances: Scope
expanded to include inflammablefluids, organic solvents, and specified
water contaminants in addition to thesubstances requiring notification
under the PRTR law

VALQUA Network

28

Sustainability data control items

334ｍ ³

Wastes19,938t

Sustainability
Activities report

In recent years, corporations have increasingly been called upon to disclose
information on their efforts to address climate change and resource issues withthe goal of realizing a sustainable society. With continued emphasis oncompliance, the VALQUA Group introduced a sustainability information collection
system in 2019 to accurately and swiftly disclose environmental data and othersustainability data to stakeholders. Every year, various kinds of data are collectedfrom a total of 25 bases (12 in Japan and 13 overseas) and summarized.
In this way, we are striving to improve performance through action plans thatmake environmental data and sustainability data visible through unified
management, while also making efforts to expand information disclosure along
the lines of the GRI Standards, TCFD, etc.

Other

46MWh

LPG

Total: 20,566t

Production related

38,335MWhA-type heavy oil

Municipal gas

Sustainability data, beginning with environmental data

CO2
emissions

Total: 163,163GJ

Electric power

Target: VALQUA Group businesses
in Japan and overseas (with thepartial exception of 16 small-scalebases, such as local sales offices,
representatives‘ offices, andoverseas sales companies)
Period of tabulation: April 2022 toMarch 2023

OUTPUT

Sustainability
Management

Lined tanks for storing semiconductor
chemicals are one of the main products that use
VALQUA fluorocarbon resin technology, and theya re h i g h l y re g a rd e d b y m a n y m a ke rs o f
semiconductors and makers of chemicals. Use ofrotary washing, a technique whereby the tank isturned on its side and rotated while washing,has led to an approximately 40% reduction in
the amount of cleaning solution used, compared
to ordinary washing. Our customers have been
extremely pleased to find that not only is lesscleaning solution and water used in washing, but
the number of work days and management manhours have also been reduced compared toordinary washing. In the future, we will contributeto the global environment by promoting the
spread of our tank cleaning technology.

Relationship toSociety

In 2020, the VALQUA Group launched anelastomer seal material called “BLISTANCE®”,targeting the market for hydrogen as a nextgeneration energy source. This is an epochmaking elastomer product in which the blisterphenomenon* does not occur. If a blister forms
and the seal ruptures, there is a danger that thehydrogen gas will leak out.
We envisioned a material that could be usedin fuel cell vehicles (FCVs) that are used under■ Efforts to conserve water resources

Overview■ E
 fforts toward a hydrogen energy-* Blister phenomenon: a phenomenon in which hydrogen
permeates elastomer material in a high-temperature, highpressure environment and expands and ruptures rubbermaterial when rapid decompression occurs* About the TCFD
https://www.fsb-tcfd.org
In response to the demands ofG20, recommendations on
the disclosure of financial
information related to climate
were publicly announced inJune 2017 by the task force
established in December 2015
by the Financial Stability Board(FSB), which comprises thefinance-related ministries andcentral bank of each majorcountry. At present, financial
institutions, corporations, andgovernments all over theworld have approved therecommendations of TCFD.

In May 2021, at the same time that it announced its approval of the recommendations of the “Task
Force on Climate-related Financial Disclosures” (TCFD*), VALQUA, LTD. joined the “TCFD Consortium”
established to promote the recommendations.
The company promotes visionary management based on the Corporate Philosophy of “THE VALQUA
WAY”, and each employee practices corporate activities with a strong consciousness of the fact that“safety, health, and environment” is an important common theme for all humankind. Moreover, in the longterm management goals that conclude in the 100th anniversary of our founding (2027), VALQUA defined
the corporate image it was aiming for as “a challenging company that challenges the future and theunknown —to contribute to the richness of the human race and global environment—”, and it is proactively
making efforts in the areas of “environment, society, and corporate governance” as a better global citizen
as it aims to become a corporation that can contribute to the realization of a sustainable society.
In FY 2022, we performed scenario analysis in line with the TCFD recommendations, and while
identifying climate change related risks and opportunities, we qualitatively considered their impact on
our company. On the basis of the results, we are disclosing the items recommended by TCFD whenevernecessary.

Special Feature 2

In the VALQUA Group, we get an overall
picture of the environmental burden of ourbusiness activities by grasping the INPUT suchas the energy and water that goes into businessactivities and the OUTPUT, including CO2
emissions from use of energy and the wastes
that emerge from production process.
A sustainability information collection
system has been introduced for swift andaccurate collection and central control of
information from Group companies, to enablecalculation and disclosure with an appropriate
greenhouse gas coefficient.

harsh conditions of extremely low temperatureand rapid decompression, as well as in hydrogenstorage tanks and pipes around engines. In
2022, when the existing specification was -40°C,
we leapt ahead of other companies to develop a
product that could withstand a low temperatureof -60°C.
With the material formulation and seal
design technologies that are the strengths of the
VALQUA Group, we are solving social issues andcontributing to a decarbonized society.

Coping with climate change

Special Feature 1

Efforts to prevent andreduce leakage

Top Message

08

Prevention and reduction of leakage of 
08 environmentally hazardous substances

History of VALQUA

Environment

29

VALQUA Group Sustainability Report 2023

Safety and HealthGreenhouse gas emissions (Scope 3)■F inal disposal volume for wastes

15,00010,16820,5660.4991

10,624

14,202

12,4580.40170.3308
9,938

10,023

400
2017

■ D
 evelopment of proactive human

8,044

9,380

392

762

322

2018

2020

2019

Domestic indirect

Domestic production

resources

0.4315

13,5130.4216

10,0000

https://www.valqua.co.jp/
social/safety_health/

0.45

0.4254

5,000

0.50

Safe workplace, and mental
and physical health

8,080

7,480

658

629

2021

2022
(Fiscal year)

Our internal auditors and health promoters
are actively promoting the realization of a safeand healthy workplace. Through experiencebased learning, we are also striving to raise
consciousness of safety and health and develop
leaders who can accurately perceive risks.

0.40

0.35

0.30

■ I mproving the organization andeffectiveness of our system forpromoting safety and health

Overseas production

Basic sales unit

To meet the expectations of our stakeholders,
we are making our system conform to global
standards for visualizing and eliminating risks. At
the same time, we are striving to maintain andpromote the mental and physical health of ouremployees through mental and physical care.

▼ Change in final disposal volume for wastes (production units + indirect units)
Basic sales unit (t/¥M)

（t）
1,200

0.025

1,000

960

944
0.0211

800
600

770

758

400
200
0

694

0.0159653

620

0.0138
259

252

250
7

7

7

2017

2018

2019

Domestic indirect

628

0.0162
0.015
279
12
2020

Domestic production

233
8
2021

■ V
 ALQUA Group Safety and Health Day

0.015

The VALQUA Group has designated May 18 as“VALQUA Group Safety and Health Day” to raiseawareness of safety. We have also established
SHE (Safety, Health, and Environment) Week tocoincide with National Safety Week in July, andevents are held to strengthen SHE activities at all
Group bases, including those overseas.

227
6
2022
(Fiscal year)

0.010

Overseas production

Basic sales unit

VALQUA FFT INC.
Safety and Health Festival held during SHE WEEK■ Activities that proactively promote

safety and health▼ Incidence ofaccident occurrence(Cases)
15

16

VALQUA VIETNAM
Practical training on company grounds for a new
employee with little driving experience

12

7

10

7

2
Scope 3 (plan to post data in FY 2022)

As the VALQUA Group‘s business becomes
more globalized, risks accompanying thedifferences in legal regulations and customs in

2018

Serious accidents

Labor accidents

2
6

4

4
2019

6

2020
Fires

4
2022
(Fiscal year)
Commuting accidents
2021

Simulated accident (getting caught in equipment) inexternal practical safety training

VALQUA Network

2017

5

3

3

1

7

9

2
3

5

0

9

8

Sustainability
Activities report* Greenhouse gas emissions are calculated by annually reconfirming the emission factors for eachfuel and electric power in the greenhouse gas emission calculation, reporting, and announcement
system based on the “Act on Promotion of Global Warming Countermeasures” (Global Warming
Act).
Scope 1 refers to direct greenhouse gas emissions from the business itself, Scope 2 refers toindirect emissions accompanying the use of electricity, heat, and/or steam supplied by anothercompany, and Scope 3 refers to indirect emissions occurring from the procurement of raw materials
through production, sale, and disposal, excluding Scope 1 and Scope 2. Because the provision of
information on electric power from each country has become more robust, we started surveying
and calculating emission factors for each base in FY 2020.

https://www.valqua.co.jp/social/environment/30

 vents to strengthen SHE activities▼E

Safety and health promotion
activities

0.020

0.0199

511

501

861

860

each country and region have become manifest.
We are convinced that the Group‘s key
principle of “Always treat health and safety with
top priority” can be realized by meticulously
taking action to accommodate the different legal
regulations and customs in each country andregion without delay.
In terms of hygiene, while devoting efforts topromoting employee health from the standpointof health management, we are proactively
p ro m o t i n g h ea l t h g u i d a n c e by i n d u s t r i a lphysicians and the creation of a happy, healthy
workplace from the standpoint of both safety
and hygiene. Moreover, we have issued guidelines
on measures for preventing the spread of
COVID-19, and thoroughgoing infection control
measures are being taken in each office.

Sustainability
Management

In FY 2022, the absolute amount ofemissions increased compared to FY 2021 by 1
ton. The effects of the production increase were
expected to result in an increase of 148 ton, but
a decrease of 9 ton was achieved through theeffect of improving defects and yield throughrationalization and cost reduction activities, andan additional decrease of 138 ton was achieved
through improvements in efficiency fromincreased production and the removal of one
production-related company from consolidated
subsidiaries. As a result, there was a 14%
reduction in terms of the basic sales unit.

9,908

20,326

Management of mental
and physical health

Relationship toSociety

Starting in FY 2014, we began to calculate
greenhouse gas emissions for the entire supply
chain, and we have now been doing so for 9y e a rs . Fo r d e t a i l s o f S c o p e 3 a n d o t h e renvironment-related data, please see our
website.

20,583

0.55

Overview■

20,246

22,940Special Feature 2

In FY 2022, the absolute amount of waste
discharge decreased compared to FY 2021
by 2,374 ton. An increase of 3,860 ton wase x p e c t e d t o a c c o m p a n y t h e i n c re a s e i n
production volume, but rethinking oftemperature control through rationalization andcost reduction activities and the updating ofoutdated facilities resulted in a reduction of
242 ton, and the effects of other increases in
efficiency through production increases andchanges in the electricity emission factors ofeach country, combined with the removal of one
production-related company from consolidated
subsidiaries, resulted in an additional decreaseof 5,992 ton. As a result, there was a 23%
reduction in terms of the basic sales unit.

20,00022,319Special Feature 1

Greenhouse gas emissions (Scope 1/2)

10 Occupational health and safety

Basic sales unit (t-CO2/¥M)

25,000■10▼ Change in greenhouse gas emissions (production units + indirect units)（t-CO 2 ）Top Message

Change in main
environmental load

SDGs to which this contributes

History of VALQUA

Environment

31

VALQUA Group Sustainability Report 2023

12

Ensuring of the diversity of
12 human resources

11 Handling of conflict minerals, etc.

■ C
 SR Procurement Guidelines■ C
 SR procurement questionnaire

https://www.valqua.co.jp/
social/csrprocurement/■ Supporting employees’ life-workbalance by providing flexible ways
of working■ H andling of conflict minerals*, etc.

VALQUA introduced the remote work system
in 2020 with the aim of creating a flexible
workplace environment that is easy to work in.
Through the flextime system, hourly-unit and halfday-unit paid leave system, and short work weeksystem for side jobs, we are proactively promoting
the creation of a foundation that enables
employees to tailor their work style to their needs.
Our company supports the work-life balance ofeach employee, and we will continue striving tocreate an environment that enables each
employee to continue meeting challenges while
maintaining the sense that work is worthwhile.

* Conflict minerals: Minerals
that provide a source of funding
for armed groups that commit
human rights violations andcorrupt practices in conflict areas■ E ngagement

We have defined the goal for our 100th year
▼ Percentage of women in management positions

Target: 10% by FY 2020, 15% by FY 2027
13.1

（%）14

 onfirmation items in CSR procurement questionnaire (Added cobalt and mica under Conflict Minerals in FY 2022)▼C
SectionContent of efforts● Legal compliance, preventing violations

Corporate
governance● Internal control

Fair trade
Information/
security

Human rights
Labor
Environment

BCP● Extending to business partners

2
2018

2019

2020

● Use of conflict resources (tantalum, tin, tungsten, gold and its derivatives, cobalt, and mica produced in conflict areas)● Respect for human rights● Prohibition of discrimination● Prohibition of discrimination in hiring● Management of legally designated chemicals● Green procurement and waste reduction● Reduction of greenhouse gas emissions● Environment in which employees can work safely and in good health● System for handling disasters and accidents● Business continuity planning efforts● Compliance with prohibitions● Management of wastewater, sludge and emissions● Sustainable and efficient utilization of resources

Target: Meet or surpass the statutory employment rate（%）3.0● Providing equal opportunity for employees● Fair application of work hours, breaks, paid leave● Worker safety● Disaster preparedness2022(Fiscal year)▼ Rate of employment of persons with disabilities
2.66

2.46

2.41
2.3

2.5

2.20

2.0

2.2

2.2

2.3

2018

2019

2020

2.66

2.3

1.5
1.0
0.5
0.0

Rate of employment of persons with disabilities

32

2021

● Prevention of attacks on computer networks● Compliance with laws, regulations, social norms, industry norms and standards● Special paid leave for child care

● Shortened work hours for child care (until childreaches 3rd year of elementary school)● C hild-care leave (until child reaches age of 2

years and 6 months)● Paternity leave system● Flex time system (core time 1:00 pm – 3:00 pm)● Shortened work hours for family care
● Career return system(As of June 1, 2023)

in business as becoming “a challenging company
that challenges the future and the unknown”, but
in order to realize this ideal, we need to switchfrom a passive to an offensive constitution andmeet challenges without fearing failure. Our
company proactively promotes the improvementof employee engagement, and since August
2020, we have conducted annual engagement
q u e s t i o n n a i re s u r v e y s o f a l l e m p l o y e e sthroughout the VALQUA Group. On the basis of
the results of the survey, we are taking measuresin each business unit to create an open workplacethat respects the personality and individuality ofeach employee and emphasizes dialog.

employees can be active regardlessof gender

60● Personal/confidential information management● Day off on child’s birthday■ Creating an environment in which

84● Prevention of abuse of superior bargaining position

3 years)● System for obtaining paid leave in 1-hour units

2021

2022
(Fiscal year)
Statutory employment rate

We p r o m o t e f u r t h e r i n n o v a t i o n b y
incorporating diverse viewpoints irrespective ofgender. In particular, we set targets for thepercentage of women in management positions
and proactively appoint women to these
positions in the management of overseas groupcompanies, etc. to support women’s careerdevelopment and growth.
■ P romoting employment of

persons with disabilities

Aiming for harmonious coexistence with thecommunity, the VALQUA Group proactively accepts
interns with disabilities from special education
schools in the community. While communicating
the joy and significance of working to persons withdisabilities, we support job retention andindependence after joining the company.

VALQUA Network

Safety and health● Ban on offers/acceptance of improper advantage● Management of intellectual property

10● Proper import/export● Preventing corruption (political donations, bribes)

11.1● Family care leave (continuous for maximum of

Sustainability
Activities report

Supply chain● Whistle-blowing● CSR promotion

10.1

11.3

● Remote work system (including allowance)

Sustainability
Management

CSR

12

11.8

● 2nd job (short work week)

Relationship toSociety

The VALQUA Group considers addressing
human rights risks, including the proper handlingo f c o n f l i c t m i n e ra l s , t o b e i t s c o r p o ra t e
responsibility, and we have established a related
policy in the CSR Procurement Guidelines andconduct investigations of procured items.
Effective FY 2022, we have added cobalt andmica to conflict minerals to reflect an increased
awareness of human rights due diligence in our
activities. In cooperation with our suppliers, wewill redouble our efforts to avoid involvement in
human rights violations.

System that supports flexible ways of working

Overview

As one of the activities that promote CSR
procurement throughout the entire supply chain,a self-evaluation questionnaire is conducted inorder to confirm the status of CSR promotion ateach supplier.
In a new effort to make evaluations ofcompliance stricter, the number of questions in
the questionnaire was increased from 20 to 30
in FY 2020, including questions on corporate

Creating a workplaceenvironment and various
systems

Basic Procurement Policy
VALQUA GroupCSR Procurement Guidelines

Special Feature 2

T h e VA L Q U A G r o u p e s t a b l i s h e d t h e“CSR Procurement Guidelines” in 2016 topromote procurement activities that also giveconsideration to society, the environment, andhuman rights, etc. Based on the Corporate
Philosophy of “THE VALQUA WAY” and the “CSR
Concepts”, 5 items have been established as the“Basic Procurement Policy”. These guidelines
minimize risk throughout the supply chain andpromote sound procurement activities.

governance, supply chain, and the environment.
We also expanded the scope of the survey,
including suppliers other than the main suppliers
to which the questionnaire has been administeredthus far.
In the future, we will continue to refine thecontent of the questionnaire in order to further
promote CSR activities, and we will makecontinued efforts to collaborate with the
suppliers and support them in order to realize
CSR procurement through individualized support
for suppliers.

Special Feature 1

Promotion of
CSR procurement

Top Message

11

SDGs to which this contributes

History of VALQUA

Supply Chain Management

Human Resources andHuman Rights

SDGs to which this contributes

33

VALQUA Group Sustainability Report 2023

Customer Satisfaction

15

Respect for human rights
13 (including human rights due diligence)

Respect for human rights

Quality Policy, Quality Management System

https://www.valqua.co.jp/
social/human_resources/

https://www.valqua.co.jp/
social/safety_quality/

New Gaskets and GasketingTechnology
The industry’s first “gasket
manual”, which provides easyto-understand explanations of
the technological basics ofgaskets, bolting, and flange joints
https://www.valqua.co.jp/
technical/gasketintroduction/

VALQUA Group
Compliance Handbook

We support the self-sustaining growtho f e m p l o y e e s t h ro u g h a w e a l t h o f s e l fenlightenment programs. There are numerous
options tailored to individual study goals, such

34

Initial targets for employees in the VALQUA
Group are set through discussion between
subordinates and superiors on the basis of annualcompany policy and the mission of the division. In
HR evaluations, the superior clarifies issues in thesubordinate’s self-evaluation and identifies points
to improve next time through ongoing
communication. HR cultivation thus supports thesustained growth of the VALQUA Group.
Profile of the Ideal Human Resource● A person who empathizes with our Corporate

Philosophy, “THE VALQUA WAY”
● Acts & makes decisions from global perspective● S trongly committed to learning and growth,and can continue to take on new challenges
while thinking for him/herself● Capable of speedy judgment and action. Can
boldly meet challenges in anticipation ofchanging times and reforms* To use the “Seal Quick 
Searcher”, visit our website.
http://www.seal.valqua.
co.jp/seal/

A wide variety of
training programs
1. H
 R cultivation for
globalization
2. D evelopment of Groupmanagers
 evel-specific training
3. L
4. O
 ccupation-specifictraining
 elf-study
5. S
 JT
6. O

The VALQUA Group not only manufacturesand sells seal products but also provides
educational support for technicians. Seal training
is constantly evolving to meet the demands ofcustomers and reduce leaks from faulty seal
installation, which is a cause of accidents at
plants.
We are also promoting our seal engineering
services, which combine the originaltechnologies cultivated by VALQUA with smart
technologies like IoT.
We are contributing to the safety and peaceof mind of all our customers by accelerating thedevelopment and deployment of services thatmeet the need for sophisticated safetyengineering in plants.

Three-dimensional analysis■ Search website for seal products『Seal Quick Searcher』

In response to demand from customers who
have difficulty selecting products, we haveestablished a product search site with various
portals to prevent trouble caused by faulty
selection. With services that make productrecommendations according to environmentof use (fluid, temperature, pressure, etc.),
keywords, and industrial field, or that
automatically calculate the necessary tightening
force for the application, we solve customers’
individual problems in real time, enabling themto select the optimal product right away or
prepare technical documentation using only thenecessary data. We will continue to improve thissite to meet customer expectations from a broad
perspective.

VALQUA Network(distance learning)and HR evaluation mechanism

Sustainability
Activities report■ E nhanced support for self-study

Promoting the development
and spread of services forthe benefit of safety andpeace of mind of customers■ Target management 

Sustainability
Management

To realize the Core Principle of “Value &Quality (Create value and improve quality)”, the
VALQUA Group strives to implement humanresources development with an awareness ofthe strengths of each employee.
In addition to job rotation, OJT, and annual
goal management, we provide various training
programs based on the “Declaration on Human
Resource Development” and “Policy on Human
Resource Development”. In addition to traininga n d s e l f- e n l i g h t e n m e n t p ro g ra m s fo r a l lemployees, we conduct special training for
selected core personnel to cultivate human skills
and the power to effect change. We are devoting
much energy to producing human resources
who can each exhibit their strengths to the
maximum extent and contribute to “the richnessof the human race and global environment”.

https://www.valqua.co.jp/
tech/technical/

as fully subsidized distance learning, educational
videos for learning general business skills,
language learning with a focus on English, andsupport for public test taking.

The use environments of seal products arediverse, and in actual practice, it is difficult toperform evaluation and verification for all
customers. At the VALQUA Group, we are
addressing this issue by using finite element
analysis (FEA) to develop next-generation
evaluation technology for reproducing andverifying use environments on computers.
Through these efforts, it has become
possible to verify large-caliber apparatus underhigh-temperature and high-pressure conditions,which was previously difficult to evaluate, andprediction of service life has also become
possible. In addition, FEA is used for the efficientevaluation of diverse combinations ofconfiguration and materials in product design,
and it is effective as design screening.
In the future, we will go on contributing to
the safety and peace of mind of all customers byproactively engaging in such research anddevelopment.

Relationship toSociety

Human resources development

VALQUA technical journal“VALQUA Technology News”

In the VALQUA Group, we have organized a“Group Quality Assurance Committee” toconstruct a global quality system integrating theentire Group. Although mainly drawn from the
Quality Assurance Division, the Committee
consists of responsible persons from each unitthat is related to quality, such as the Production
and Procurement Group and the businessd i v i s i o n s t h a t e xe rc i s e c o n t ro l o v e r t h e
production-related companies and sales-relatedcompanies in Japan and overseas. The
Committee increases the effectiveness of theentire Group by issuing instructions for theconcrete deployment of its decisions at thesame time that it takes responsibility for their
daily execution.
Moreover, the organization, as well as each
employee of the company, engages in quality
improvement activities by establishing concretegoals on the basis of the “Quality Policy”. This
provides the basis for complying with related
legal regulations and providing safe products
and services with the assurance that quality willmeet the demands of the customers.

Evaluation technology

Overview

14 Human resources development

Quality assurance system and policy

Special Feature 2

14

VALQUA Group Basic Policyon Human Rights

Special Feature 1

T h e VA L Q U A G r o u p e s t a b l i s h e d t h e“VALQUA Group Basic Policy on Human Rights”
in March of 2017 on the basis of the United
Nations Global Compact. On the basis of thispolicy, and with reference to the GRI Standards,
we have prepared an assessment sheet, and asurvey of Group companies is conducted once a
year to spread knowledge of the human rights
policy throughout the Group, confirm
understanding, and check the status of humanrights efforts.
The results are analyzed, and while providing
support so that each Group company canautonomously grasp, prevent, and handle humanrights problems, we promote diversity andfurther awareness of human rights.
At the VALQUA Group, we are making
voluntary efforts to maintain and improve
consciousness of human rights by giving out ourCompliance Handbook and participating in study
groups and external
training in each Group
company.

Improvement of quality and
15 customers’ safety and peace of mind

Top Message

13

SDGs to which this contributes

History of VALQUA

Human Resources and Human Rights

35

VALQUA Group Sustainability Report 2023

Promotion of sports, culture, and the arts 
16 Exist with harmony to the community■ N ew efforts to promote “ballroom dancing”

The prize money in the VALQUA Cup Japan Open Dance
Championships (incentive for amateurs) is awarded in
the expectation that it will support them as they makethe leap into the world of athletics.

We at the VALQUA Group are always thinking about what
we can do to build a more prosperous future for the people of
the world, based on the Action Principle of “Exist with harmony
to the community”, which is part of the Corporate Philosophy
of “THE VALQUA WAY”, and every year we hold a “Local
Community Thanksgiving Day” to conduct volunteer activities
rooted in the local community.
報道各位
Employees and their families from 44 offices, sales bases,
年8月
1日
and factories at Group companies throughout2022theworld
株式会社バルカー
participate.
総務部 広報担当
In FY 2022, while reconciled to living with COVID-19, wethought up ways that each base could conduct cleaning
activities ウクライナダンス協会へ寄付のお知らせ
and flower bed planting mainly through fund-raisingand contributions (donations).

■ Osaki Office

In February of 2022, as part of our sustainability activities,
we participated in the Shinagawa Gakuen “Company
Information Session Experience*”, providing an overview of ourbusiness and explanations of our company’s products, etc. In
the Q&A session, students showed great interest, asking manyquestions about our company and what it is like to work there.
* Company Information Session Experience: an annual school event that has
been held at Shinagawa Gakuen for students in the 7th grade (in the first yearof junior high school) to give them an opportunity to learn about the joys of
production and the significance and dignity of labor. The goal of this program is
to foster appropriate work values and forward-looking attitudes toward work.

株式会社バルカー（本社 東京都品川区、代表取締役会長 CEO 瀧澤利一 以下、バルカー）は、

VALQUA Group

日本ダンス議会（東京都中央区、会長 楠潤一郎以下、JDC）を通じてウクライナダンス協会（All■Ukrainian Council on Dance Sport 、会長 Igor Soronovych、以下、AUCDS）に 226 万円の寄付を行いました。

Together with the Japan Dance Council, our Group solicited
donations,and in MayCSR
of 2022,
we donated 2.26 million yen to
バルカーグループでは、長年にわたり活動の柱の一つとして「スポーツ支援」を推進しています。
中でもボールルームダンスは、年齢や障がいの有無にかかわらず誰もが楽しめる生涯スポーツであり、
the All Ukrainian Council on Dance Sport (AUCDS). AUCDS is
国際人としてマナーやコミュニケーション力を養う最適の教養であることや、優れた才能を持つ選手が多an organization that brings together over 350 dance clubs from
数存在していることから、振興支援に取り組んでいます。
all regions of Ukraine, and it devotes efforts to the nurturing of
AUCDS は、ウクライナの全地域にある 350 以上のダンスクラブを統合していますが、多くの地域がロchildren. We received a letter of thanks from Igor Soronovych,
シアに占領され、インフラが破壊されており、これまでのような形でダンス競技会やレッスンを開催するこ
Chairperson of the AUCDS, for this donation
given in the spiritとが難しい状況です。そこで今後の活動支援の一助として、バルカーと
JDC で募金を呼びかけ寄付を行いました。
of aiding Ukrainian reconstruction and supporting the AUCDS’s
activities. Mr. Soronovych’s letter stated that “All of the money
今回の寄付について、AUCDS 会長の Igor Soronovych 氏からお礼状をいただきました。内容の一部
will be used to rebuild Ukraine’s social dance competitions.”を抜粋してご紹介いたします。

■ V ALQUA AMERICA, INC.

At VALQUA AMERICA, employees took part in volunteer
activities in October 2022 at a food bank, where they sorted
food.
The work of labeling and boxing canned goods andsorting and boxing pears involved a lot of physical exertion, but
at the end, the volunteers said they had a great sense ofaccomplishment and fulfillment.

この大変な時代に私たちをサポートし、助けてくれて本当にありがとうございます。

We are truly grateful to you for supporting us during this difficult time.
私たちは、将来、皆様と協力しあっていければと思っております。
We hope to continue to collaborate with you all in the future.

Excerpt from letter

バルカーグループはこれからもグローバルな視点でボールルームダンス界の健全な発展に尽力してま
いります。

■ N
 ara Office (VALQUA / VALQUA SEAL SOLUTIONS

CO., LTD.)▲V olunteers pack pears into ▲ V olunteers finished sorting andboxes while checking them forboxing 6,200 pounds (2,812
mold and damagekg) of canned goods

Sustainability
Activities report

Many pairs of a visually impaired person and sighted
person took part in the Asian Open Blind Dance
Championships.

As a member of the Techno Park / Nara Industrial以上
Area
Management Council, we are engaging in activities to watch
over the community in collaboration with other corporations.
Coordinating with the local elementary school’s class dismissal
schedule, we continue to provide crime prevention patrols along
the routes that students travel to and from school every month.

Sustainability
Management▶

All UkrainianCouncil onon DanceSport
Igor
Soronovych
All UkrainianCouncil
Dance
Sport
Igor
Soronovych

VALQUA Network▲ Volunteers finished sorting and boxing 17,000 pounds (7,711 kg) of pears

36

Relationship toSociety

I寄付金による大きなご協力をいただき、貴団体メンバー全員に感謝したいと思います。
would like to thank all of the members of your organization for so
generously
supporting
us with thisAUCDS
donation.
16 457,97 EUROを受け取りました。私はの会長として、このお金はすべてWe
received 16,457.97 Euros. As chairperson of AUCDS, I will use
ウクライナの社交ダンス競技会の再建のために使用いたします!
all of this money to rebuild Ukraine’s social dance competitions!

▲ The students were filled with curiosity. They enjoyed actually handlingthe samples, and they showed a keen interest in the explanation of
the seal materials that are used all around them in their daily lives.

Overview

The “D Melody” TV program sponsored by the VALQUA
Group presents a special VALQUA Cup show as anentertainment program for the fans.

Exist with harmony to the community

Special Feature 2

For long years, the VALQUA Group has been
involved in promoting and supporting sports topromote health and enrich people’s lives. Since
2014, we have been supporting the spread anddevelopment of ballroom dancing, which is lovedby everyone, regardless of age or physical ability.
With the gradual relaxing of COVID-19
control measures in FY 2022, the variousb a l l ro o m d a n c e c o m p e t i t i o n s t h a t w e repostponed or held remotely have begun to beheld in person, one after another. To further
support and encourage the athletes andorganizers who surmounted the difficulties ofthe pandemic, we provided support for various
national competitions for the visually impaired,including the Japan Blind Dance Championships
and Asian Open Dance Championships.
As the VALQUA Group expands globally, weare seeking to promote dance sports along withour business. To this end we also provided
support for the 2023 Asia Dance Tour Taipei
Open and the 2023 Korea Open International
Dance Championships. We would like to see thedance communities of neighboring countries
assist each other by making efforts to promote
dance sports for the sake of both the athletes
and the audience, and we sincerely hope that
this will lead to social contributions.
Moreover, the “VALQUA Cup” competition
that has been held in Japan every November
with special support of the VALQUA Group has
been transformed into the “VALQUA Cup Japan
Open Dance Championships”. This represents
the highest level of dance competition in Japan,
and it seeks to provide a space in which athletes,
whether pro or amateur, can dance freely. At thesame time, it draws attention to the major goalsof promoting compliance and improving equity.
The athletes set the dance floor afire in the latest
hotly contested competition.

https://www.valqua.co.jp/
social/action_program/Special Feature 1

Promotion and support ofsports

For information on various
donation programs andsupport for activities oforganizations that contributeto society, please visit:

Top Message

16

Community

SDGs to which this contributes

History of VALQUA

Community

37

VALQUA Group Sustainability Report 2023

VALQUA Group1

East Asia❶ VALQUA SEAL PRODUCTS❻ VALQUA INDUSTRIES(SHANGHAI)CO., LTD.

(THAILAND), LTD.

❷ VALQUA(SHANGHAI)

Location: Samutprakarn
・RAYONG BRANCH

Location: Shanghai

Location: Rayong❸ VALQUA KOREA CO., LTD.

❼ VALQUA INDUSTRIES・ULSAN OFFICE

Location: Singapore

SINGAPORE PTE. LTD.

Location: Seoul

Location: Ulsan

North America❽ VALQUA AMERICA, INC.

・PYEONGTAEK FACTORY
・APPLIED R&D INSTITUTE
Location: Gyeonggi-do

2

Sale of various seal products and highperformance products to the Chinese market

TRADING CO., LTD.

・ADVANCED SEAL TECHNOLOGYINSTITUTE

VALQUA
INDUSTRIESSINGAPORE
PTE. LTD.

VALQUA KOREA
CO., LTD.

Manufacture and sale of high-performance
products for the semiconductor market, sale ofvarious seal products to the South Korean market

Sale of various seal products and highperformance products to the ASEAN market❽

VALQUAAMERICA, INC.

TAIWAN VALQUAENGINEERING
INTERNATIONAL,
LTD.

Location: Houston, TX

・STSP Branch

❼

❸

❹

Location: Sunnyvale, CA❾ VALQUA NGC, INC.

INTERNATIONAL, LTD.

Manufacture of gaskets and various seal products.
Sale of various seal products to the ASEAN market

Location: Kaohsiung City・HSINCHU OFFICE
Location: Hsinchu City

3

10
♦
♣
♠

9

6

●
●
♦
♣
▼

♣

ASEAN
❺ VALQUA VIETNAM CO., LTD.

♦❶VALQUA SEALPRODUCTS(SHANGHAI)
CO., LTD.

・HAI DUONG FACTORY

Location: Hai Duong Provience
・HANOI BRANCH

Sale of high-performance products to the US
semiconductor market❺❾

VALQUA VIETNAM
CO., LTD.

VALQUA NGC,
INC.

Location: Hanoi
・Ho Chi Minh Sales Office

Manufacture of metal bellows products, etc.;
manufacture of fluororesin lined tanks for the
Chinese market

Location:Ho Chi Minh

11

Manufacture of gaskets and various seal
products. Sale of various seal products to the
ASEAN market

Manufacture and sale of fluororesin lined tanks
to the US market●●

Special Feature 2

7 8

♠●
▲●
4 5 ▼♦●♦

Manufacture and sale of various seal products,
high-performance products, and fluororesin
lined products for the Taiwanese market

Special Feature 1❹ TAIWAN VALQUA ENGINEERINGVALQUA
INDUSTRIES(THAILAND),LTD.

VALQUA(SHANGHAI)
TRADING CO.,LTD.

Top Message

Network❻❷

History of VALQUA

Overseas Network

Domestic Network
Overview

Head Office

ThinkPark Tower 24F, 2-1-1 Osaki, Shinagawa-ku, Tokyo 141-6024 JAPANTEL(03)5434-7370 / FAX(03)5436-0560♦Sales base

VALQUA SES CO., LTD. (Ibaraki, Chiba)
VALQUA TECHNO CO, LTD. (Tokyo, Osaka, Hiroshima)

Research and development base
VALQUA, LTD. (Tokyo, Nara)

Sales Division■H&S Business Group

Material & Film Division, Machining Products Division, Lined Division, Procurement Division
Hikone Sales Office, Kumamoto Sales Office●High Performance Seals Group♣Nara
VALQUASEAL SOLUTIONS
CO., LTD.

▪

♦TokyoVALQUA TECHNO
CO, LTD.

1 2
5

Manufacturing of high-performance products forthe semiconductor market

Sale of various seal products for the domestic
market♣Aichi
VALQUAMETAL TECHNOLOGYCO., LTD.

♣Fukuoka
KYUSHU VALQUA
CO., LTD.

3

8

▪

9

4

6

Sustainability
Management●High Performance Plastics and Products GroupVALQUA SEAL SOLUTIONS CO., LTD. (Nara), KYUSHU VALQUA CO., LTD. (Fukuoka)
VALQUA METAL TECHNOLOGY CO., LTD. (Aichi)

7

Tokyo Sales Division, Osaka Sales Division, Kumamoto Sales Division●Overseas Business Group

Manufacturing of various metal products, valves, andfluorocarbon resin products; manufacture and saleof bellows products

Trading Section

Manufacture of synthetic rubber products and fluoro
rubber products, solar power generation business♦Ibaraki
VALQUASES CO., LTD.

♠Nagasaki
VALQUA FFT INC.

♠Sales and manufacturing base

VALQUA FFT INC. (Tokyo, Nagasaki)

Sale of various seal products for the domestic
plant maintenance market

Processing and sale of silicon wafers▪ Research and development base

Sustainability
Activities report

Manufacturing, R&D, and HR development base

M·R·T Center
2-2-2 Oyamagaoka, Machida-shi, Tokyo 194-0215 JAPANTEL(042)798-6770 / FAX(042)798-1040

Relationship toSociety❶ Section 1 (Hokkaido)❷ Section 2 (Tohoku)❸ Section 3 (Kita-Kanto/Shinetsu)❹ Section 4 (Minami-Kanto)❺ Section 5 (East Japan Customer Service)❻ Section 6 (Chubu)❼ Section 7 (Kansai)❽ Section 8 (West Japan Customer Service)❾ Section 9 (Hokuriku/Chu-Shikoku)❿ Section 10 (Chugoku)⓫ Section 11 (Kyushu)♣Manufacturing baseCompany Overview
Head Office: ThinkPark Tower 24F, 2-1-1 Osaki, Shinagawa-ku, Tokyo 141-6024 JAPANFounded: January 21, 1927 / Established: April 8, 1932 / Capital: 13,957 million yen
Listed: On the Prime Market of the Tokyo Stock Exchange / Number of employees: 417 (1,682 Groupwide, as of March 31, 2023)
Business: Design, manufacturing, processing, and sale of products made from fibers, fluorocarbon resin, high performance rubber, and other materials to meet the needs of all industries, including industrial equipment, chemicals, machinery, energy, communication equipment, semiconductors, automobiles,
and aerospace , development and sale of software and information systems, related electronic commerce and other services using the Internet, consulting, engineering, and other businesses related to technology and know-how

38

VALQUA Network

VALQUA, LTD.

39