Sustainability and the Organo Group

Sustainability Management
Sustainability Policy

Material Issues

Leveraging its leading-edge technologies
cultivated through long experience withwater treatment, Organo provides
environmentally-friendly products andservices that contribute to water
environment conservation andprevention of global warming.*

S

We promote a workplace where humanrights, diverse values, and individuality
are respected, and where every
employee is given the opportunity togrow and play an active role.

G

Identification Process
Keyword extraction

Extracted candidates for material issues from management philosophy, Long-Term Management
Vision, ORGANO 2030 (long-term management plan), medium-term management plan, businessstrategies, business environment, ESG valuation standards, GRI Standards (internationalguidelines related to sustainability)

Assessment ofimportance

Organized the extracted material issue candidates by “achieving continuous business growth”
and “establishing a business foundation,” in accordance with the framework of ORGANO 2030,
assessed these in terms of the importance to the Company based on the relationship withstakeholders, risks and opportunities, value of providing products and services, and contribution
to social issues, and hypothesized material issues

Assessmentof validity

Assessed validity through discussions with the Sustainability Implementation Meeting andSustainability Committee and through interviews with outside experts

We emphasize dialogue and cooperation
with all stakeholders, and we conduct
honest and fair corporate activities.

* “Leveraging its leading-edge technologies cultivated through long experience with water treatment” refers to our pursuit of water
treatment-related separation and purification, analysis, and engineering technologies, and our provision of optimal systems and services thatmeet the needs of society through a combination of these technologies.

Sustainability Promotion System
The Group established the Sustainability Committee as an organization to plan, propose, and implement measures topromote sustainability management. We also established the Sustainability Implementation Meeting, which promotes
specific measures as the implementation organization of the Committee.
The Sustainability Implementation Meeting creates working groups in response to prevailing sustainability issues,
and working group members are assembled from relevant business units and group companies to work on resolving
issues.
As of October 2023, the Sustainability Implementation Meeting had five working groups, with each one focused on
separate initiatives (measures to calculate and reduce GHG emissions, measures to achieve SDGs, promotion of
CSR procurement, and response to TCFD recommendations).
Board of Directors
The progress status of the measures implemented by the Sustainability
Supervision
Reporting
Implementation Meeting are reported to the Sustainability Committee,
and approval
which discusses and deliberates on issues and reports to the Board of
Sustainability Committee
Directors, the supervisory and approval authority.
Reporting andSupervision
proposaland direction
The Sustainability Committee is required to meet at least twice a year,(working
groups)Sustainability
Implementation
Meeting
and it may meet on an ad hoc basis when there are urgent matters to be
Secretariat
considered. In FY2022, the Committee met a total of seven times,(Sustainability Group)
including two written deliberations.
Business units and group companies

41

Board of Directors determined the material issues

Identified Material Issues
Items related to value creation through businessactivities and global environmental conservation
essential for daily life, industry, and business

Very important

Importance to stakeholders

The Organo Group established the Sustainability Policy in 2022. To enhance the sustainability of the businessactivities of the Organo Group and contribute to achieving a sustainable society and global government, we areintegrating our medium- and long-term management plans with this policy to promote management that links
business activities to ESG initiatives.
We will provide products and services that contribute to our customers’ sustainability, water environment
conservation, and global warming prevention by solidifying the foundation of our business through comprehensive
compliance and strengthened governance, and by sustainably developing cutting-edge technologies cultivatedthrough long experience with water treatment.

Identification ofmaterial issues

Important

Importance to Company

Very importantAchieve continuous
business growthE

We evaluated trends in international society and social issues closely related to our business in terms of theimportance to our stakeholders and to our Company, and extracted key issues. We discussed these issues in aninternal meeting that included the Board of Directors, and identified material issues of high importance.

1) Contribute to a sustainable global environment• Address water resource issues• Respond to climate change• Expand environmentally friendly products and services• Promote the 3Rs (Reuse, Reduce, Recycle)• Protect biodiversity
2) Leverage technological capabilities to provide highvalue-added products and services

Establish a businessfoundation

Together with its stakeholders, Organo aims to realize a sustainable society for the future and improve ourcorporate value3) Strengthen governance and ensure compliance• Promote occupational safety and health• Respect human rights• Strengthen compliance• Strengthen risk management4) Create a workplace where diverse humanresources can play an active and rewarding role5) Strengthen supply chain management

The foundation enabling continued business
operations while fulfilling social responsibilities

ORGANO Group Report 2023

42

Sustainability and the Organo Group

Sustainability Management

List of Material Issues
Material issueAddress water

resource issues

Achieve continuous business growthProtectbiodiversity

1) Contribute to a
Respond to climate
sustainable globalchangeenvironment

Reference year
(initiative start year)

Goals for
FY2030Results for FY2022

Referencepage• Contribute to the preservation of healthy water cycles and secure water resources throughwater use in industry and daily life by providing wastewater treatment and recovery
technology.

Amount of wastewater treated by newly delivered
Organo systems and discharged by plants

2023

Total
60 million m3(There is no actual value for
FY2022, as the initiative began
in FY2023)–• Contribute to the protection of biodiversity through corporate initiatives on material issues
including wastewater treatment, products and services that save energy and resources, andwaste reduction.

Amount of water collected and reused by newly
delivered Organo systems

2023

Total
250 million m3(There is no actual value for
FY2022, as the initiative began
in FY2023)–

42% reduction

CO2 emissions: 11,566 t-CO2(12% increase from FY2021),
includes domestic and overseas
group companies

p. 55

p. 55

Contribute to realizing a sustainable society by optimizing energy usage related to businessactivities and providing products and services that contribute to mitigating climate change.

Rate of reduction of Scope 1 and 2 CO2 emissions
according to science-based target (SBT) presentation
method*1

2021

2021

Under review

CO2 emissions: 893,606 t-CO2(37% increase from FY2021),
not including domestic andoverseas group companies

Volume of CO2 reduced by applying Organo
technology and products

2023

Total
32,000 t-CO2(There is no actual value for
FY2022, as the initiative began
in FY2023)–

Volume of sludge reduced by applying Organo
technology and products

2023

Total
10,000 t(There is no actual value for
FY2022, as the initiative began
in FY2023)–

Continually develop and provide new technology and services that solve customer’ssustainability issues.

Number of developed environmentally-friendly
products and services that add value by solving
customer’s sustainability issues

2023

Two per year

(There is no actual value for
FY2022, as the initiative began
in FY2023)–

Improve in-house guidance and training to ensure safety and health in business activities withthe aim of eliminating serious lost-time injuries.

Number of serious lost-time injuries*2

2022

Zero per year

Number of serious lost-time
injuries: 7

p. 57

Strengthen
compliance

Maintain appropriate transactions based on fair and free competition, and promote thestrengthening of compliance to continue to be useful to society at large.

Completion rate of compliance-related training forparticipants enrolled at the end of the previous fiscal
year

2022

100%

Of the 18 required courses,
13 courses had a 100%
completion rate;
5 courses had less than a 100%
completion ratep. 50

Respect humanrights

Maintain and respect international standards for human rights, and promote initiatives on
respect for human rights to fulfill our corporate social responsibility.

Completion rate of human-rights-related training forparticipants enrolled at the end of the previous fiscal
year

2022

100%

Launched human rights
e-learning course(course ends FY2023)

p. 58

Strengthen risk
management

In order to realize our management philosophy, we will enhance our risk management
capabilities to recognize and appropriately address risks in our Long-Term Management Vision.

PDCA implementation rate for key risks identified by
the Company

2022

100%

100% implementation

p. 49

Ensure diversity (in terms of standpoint and approach) in various decision-making.

Number of females in managerial positions(domestic group companies)

2022

50

22

p. 59

We consider the improvement and exercising of diverse abilities by our employees to be asource of job satisfaction, and we will work to cultivate human resources and enhance oursystems to achieve this goal.

Training expense per employee(all group employees including those overseas)

2022¥100,000 perperson¥58,309 per person

p. 60

Provide a rewarding work environment where employees are mentally and physically healthy.

Number of employees exceeding the annual legal
overtime limit* Domestic group companies only

2022

Employees with
600 hours per
year: Zero

Employees with 600 hours per
year: 53

p. 59

Support the efforts of suppliers based on the Organo Group Supply Chain CSR Promotion
Guidebook, and improve CSR awareness and compliance across the group supply chain.

Number of main suppliers in compliance with Organo
Group Supply Chain CSR Promotion Guidebook

2022

Number ofcompanies incompliance:
300 or more

Number of companies surveyed:
41

p. 58



Expansion ofenvironmentallyfriendly products
and services• Reduction of the environmental burden of corporate activities, including those of ourcustomers, through the creation, commercialization, and provision of products and services
that contribute to resource and energy conservation.

• Promotion of the 3Rs for waste generated by corporate activities, including those of ourPromotion of the 3Rs customers, through Organo’s technology and services.

Promoteoccupational safety
and health3) Strengthen
governance andensurecomplianceIndex (KPI)

Rate of reduction of Scope 3 CO2 emissions
according to science-based target (SBT) presentation
method*1

2) Leverage technological capabilities toprovide high value-added products andservices

Establish a business foundation

Approach4) Create a workplace where diverse
human resources can play an active
and rewarding role5) Strengthen supply chain management*1: Criteria for calculating carbon dioxide emissions set forth by the Science Based Targets initiative (SBTi), an initiative requiring companies to set science-based carbon
emission reduction targets.
*2: Four or more days out of work

43

ORGANO Group Report 2023

44

Sustainability and the Organo Group

Governance
Basic Views on Corporate GovernanceTransition toward Stronger Corporate Governance
Main initiatives for corporate governance(1) The Company will respect the rights of shareholders and ensure equality.
(2) The Company will take into account the benefits for a wide range of stakeholders including shareholders/investors, consumers/customers, business partners, employees, and local communities, and cooperatewith these stakeholders appropriately.
(3) The Company will disclose information in a timely and proper way, and ensure transparency.
(4) The Directors, Audit and Supervisory Board Members, and Executive Officers will recognize their fiduciary
responsibilities, and will effectively fulfill their expected roles and duties.
(5) The Company will hold constructive dialogue with shareholders.
Organo Corporate Governance Guidelines https://www.organo.co.jp/english/company/governance/guidance/

General Meeting of Shareholders
Election/Dismissal

Election/Dismissal

Board of Directors
Audit

9 members (5 Independent Outside Directors)

Nomination and Remuneration
Advisory Committee

Independent
Outside Director

Election/
Dismissal

2022

EstablishedSpecialCommittee

2023

Board of Directors
comprised of a majority
of Independent Outside
Directors; appointed
female Director

1

2

3

3

5

Number of Directors

10

9

10

9

9

June 2019 June 2020

The Company conducts a survey for all Directors andAudit and Supervisory Board Members every year.
Based on the results of the survey, the Board of
Directors analyzes and assesses its overall effectivenessand discusses measures to maintain and improve thefunction of the Board.

Representative Director and President

Cooperation

Management
decision-making/Supervision

Main issues
Cooperation

Financial
audit

June 2023

Method of Implementation• Scope: A total of 12 people including Directors of theCompany (nine) and Audit and Supervisory Board
Members of the Company (three)• Period: FY2022 (April 2022 to March 2023)• Implementation timing: March 2023 to May 2023
• Implementation method: Survey by third-party
organization

Internal Auditing Dept.

Independent Outside
Audit and Supervisory
Board Member

Sustainability Committee
Management Meeting

Independent Outside Directors comprise the majority of the Board of
Directors. (June 2023)

Establish measures to ensure diversity on the Board of
Directors

One female Outside Director was appointed. (June 2023)

Clarify policies and methods for developing director
candidates

Continuing from FY2022, the Company will provide opportunities for
Executive Officers and general managers to explain and report on proposals
at Board of Directors’ meetings, as well as promote discussions on thepolicy for developing candidates for Directors.

Strengthen group governance• A new compliance group was established to foster Group-wide
compliance awareness. (June 2023)• We will raise awareness in the workplace—the key to governance and firstline of defense—by disseminating messages from management to employees
and promoting awareness through means such as signage and posters.
• We will reinforce the Organo Group’s auditing system, including
subsidiaries overseas, and promote awareness of the whistleblowing
system to build a system to strengthen the governance of the entire Group.

Promote sustainability management

Based on the basic policy for sustainability management, material issues, and
KPIs established in FY2022, we will promote sustainability management todeepen discussions at Board of Directors’ meetings on issues such ascompliance with Task Force on Climate-related Financial Disclosures (TCFD)
recommendations.

Enhance discussion of issues to be addressed,
including management strategies with an awareness of
profitability and capital efficiency, etc., and humancapital investments

We will discuss issues to be addressed, including management plans with
an awareness of profitability and capital efficiency and human capital
investments primarily through the Long-Term Management Plan Promotion
Meeting, and monitor the effectiveness of these plans through the Board of
Directors as appropriate.

Internal
audit

Various departments/divisions

Nomination and Remuneration Advisory Committee

Special Committee

The Company established the Nomination andRemuneration Advisory Committee as a non-statutory
advisory body to the Board of Directors. The committee
reviews matters relating to the selection of officers
including the election and dismissal of Directors andExecutive Officers as well as remuneration for
executives, and reports the results to the Board of
Directors.

A special committee was established as a non-statutory
advisory body to the Board of Directors, and when an
important transaction, etc. is conducted between the
Company and Tosoh Corporation, the controllingshareholder of the Company, or one of its subsidiaries,
the Committee will deliberate on such transaction, etc.
from the standpoint of protecting the interests ofminority shareholders and report the resulting
recommendation to the Board of Directors.

Status of response

Strengthen the supervision function related to businessexecution of the Board of Directors

Monthly Business Conference

45

2021

Appointed female
Audit and Supervisory
Board Member
Created Directors’skill matrix

Independent Auditor

Compliance Committee
Audit andSupervisory
Board Member

2020

Board of Directors
comprised of
one-third
Independent
Outside Directors

Number of Independent
Outside Directors

Cooperation

6 members (5 Independent Outside Directors)

Executive
Director

3 members (2 Independent Outside Audit
and Supervisory Board Members)

ReportAppointment

Special Committee
5 members (5 Independent Outside Directors)

Audit and Supervisory Board Members(Audit and Supervisory Board)

Audit

Consultation

2019

Established
Nomination
and Remuneration
Advisory Committee

Assessment of the Overall Effectiveness of the Board of Directors

Corporate Governance Structure

Report2018

Introduced
stock-based
remuneration system

June 2014 June 2015

Corporate Governance Structure

Consultation

2016

Established
Remuneration
Advisory
Committee

ORGANO Group Report 2023

46

Sustainability and the Organo Group

Governance

Composition of Board of Directors and Skill Matrix

Connection with Stakeholders

The Company believes that ensuring the diversity of the Board of Directors is useful for its deliberation to be made ina multifaceted and effective manner, and shall select in a balanced way persons with diverse knowledge, experienceand ability. The Company’s skill matrix is displayed below. It considers the Board of Directors as a whole to be wellbalanced and well diversified and of an appropriate size.
Name

Corporate
Management/
Management
Strategy

Finance/
Accounting

Legal Affairs
and RiskManagement

Global◎◎Sales andMarketingTechnology

Human
Resource
Strategy◎

Sustainability

Masayuki Yamada◎

Yasutoshi Nakayama◎

Nobuyoshi Suda◎

Tetsushi Honda◎

Keikou Terui (Outside)

◎

◎

◎

◎

◎

Kenji Hirai (Outside)

◎

◎

◎

◎

◎

Morifumi Wada (Outside)

◎

◎

◎

◎

Daisaku Abe (Outside)

◎

◎

◎
◎

◎

◎
◎

◎

◎

◎

◎

◎

◎

◎

◎

◎

Note: Skills through which each director is especially expected to demonstrate their expertise and experience are marked with a “◎.”Remuneration for Directors and Other Officers
Basic Policy
The remuneration system for Executive Directors, in addition to the fixed remuneration (cash), encourages businessexecution in line with management policies and management targets and establishes a remuneration framework andremuneration standards which provide strong incentive for the achievement of short-term as well as medium- tolong-term management targets in order to achieve sustainable growth and improve the corporate value of the Group.
The remuneration system for Non-Executive Directors, including Outside Directors, shall be fixed remuneration (cash)
only, for the purpose of ensuring the effective functioning of their supervisory and oversight roles. The Company has
established the Nomination and Remuneration Advisory Committee as a non-statutory advisory body to the Board of
Directors, in order to ensure objectivity and transparency in the process of determining remuneration.
Remuneration composition ratio of Executive Directors
50%

25%

25%

1. Fixed

2. Short-term incentive

3. Medium- and long-term incentive* In the case of the Representative Director and President

Overview of remuneration system of Executive Directors
Remuneration

Engagement

Appropriate disclosure, stable and appropriate
dividends, and sustainable improvement ofcorporate value

IR activities (financial results presentations, IR
meetings), general meeting of shareholders,
Organo’s website

Customers

Provision of high-quality products that are usefulfor society at reasonable prices

Communication through sales activities

Suppliers

Fair and impartial transactions

Communication through purchasing activities

Employees

Stable employment, cultivation of humanresources, appropriate compensation, sharing of
information and issues

Employee meetings, labor-management
consultations, various training programs, intranet,
intra-group announcements, health consultation
officeCommunity,society, andgovernment

Appropriate payment of taxes, stable and fair
employment, dialogue with local communities

Organo’s website, Organo Group Report

Dialogue with Shareholders and Investors
To achieve sustainable growth and improve corporate value over the medium and long term, the Company promotes
constructive dialogue with shareholders and investors. We place an emphasis on providing fair and accurate
information, and we report opinions and requests obtained through dialogue at Board of Directors meetings to
improve management.
Main IR activities of FY2022
Main activities

NumberFinancial results presentations for analysts andinstitutional investors

2 (Main speaker: President)

Small meetings

1 (Main speaker: President)

Individual IR meetings

180

Corporate briefings for individual investors

1 (Main speaker: President)

Issuance of shareholder newsletters

2

Overview

1. Fixed• Determined according to position
remuneration • Monetary remuneration• From the perspective of clarifying the relationship between business performance and remuneration, the Company
2. Short-term
shall use consolidated operating profit, an important management index of the Group, in performance evaluation.
incentives• Varies in the range of 0% to 170% depending on the amount of consolidated operating profit
remuneration• Monetary remuneration• From the perspective of improving corporate values over the medium to long term and aligning the interests with
3. Mid- andthose of shareholders, the Company shall use consolidated return on equity (ROE), which is an important
long-term
management indicator of the Group and indicates capital efficiency, as the performance evaluation indicator.
incentives• Varies in the range of 0% to 200% depending on the consolidated ROE
remuneration• Stock-based remuneration plan using a trust

47

Organo’s role and mission

Shareholders andinvestors◎◎

Nobuko Hanano (Outside)

Stakeholders◎◎◎

The Organo Group fulfills its corporate social responsibility to the five types of stakeholders with whom it is closely
connected in order to achieve sustainable growth.

ORGANO Group Report 2023

48

Sustainability and the Organo Group

GovernanceRisk Management

Compliance

Determining Risk and the PDCA Cycle
In executing management plans and strategies, the Board of Directors identifies major risks by performing evaluation
based on two evaluation criteria: “possibility of occurrence” and “level of impact” extracted from various departments
and divisions as well as Group companies. For those major risks, the Company determines the responsible department
or division, formulates a risk management plan, and carries out risk mitigation measures based on the plan. Next, theBoard of Directors monitors the progress of the risk management plan andActionPlanprovides instructions to the responsible department or division regarding
Identification and evaluation of
Risk identification andimprovement activities and risks
formulation of measures
improvements, as needed. Moreover, the Internal Auditing Office evaluates
the operational status of the risk management process and risk
management plan progress from an independent viewpoint to increase theAPeffectiveness of risk management. By continuously repeating the PDCA
PDCA
Check
cycle in this way, we increase the effectiveness of risk management.
cycle
Evaluation and monitoringof the process and progress
Do
Improving our risk management capabilities is a material issue for theC
D Execution of the risk
Group. As such, we have established “100% PDCA implementation rate
management planfor key risks identified by the Company” as a KPI to gauge the progress of
our efforts. In FY2022, this implementation rate was 100%.
• Formulation and execution of improvement measuresby the supervising department/division• Identification, review, and quantificationof risks by various departments/
divisions and group companies• Evaluation of the operational
status of the risk management
process and risk management
plan progress by the Internal
Auditing Office• Monitoring by the Board of Directors• Risk identification by
the Board of Directors• Formulation of the risk
management plan by
the supervising
department/division• Implementation of measuresand activities by the supervising
department/division

Major risks of the Organo Group
Risk category(1) Market
andbusiness
risks

Item

Description

Responses

Over-reliance on
specific markets
and customers• Risk with increased impact from deterioration of businessperformance in the event of decline in market conditions or lossof important customers or impact from incurred loses such ascompensation for damages, due to a concentration on specificmarkets and customers• Reduce the impact of plant-related received order fluctuations by strengthening
service solutions• Automate and streamline operations and use outsourcing to create deliveredresources• Augment marketing for the electronics industry market• Accelerate R&D based on the technology development roadmap• Reinforce safety measures

Overseasbusiness•C ountry-specific risks such as political and economic turmoil andlegal restrictions in countries and regions where we do business,
including export and import restrictions due to U.S.-China
conflict and restrictions on business activities due to the Taiwan
contingency and rising tensions between China and Taiwan• Strengthen the supply chain by establishing differentiated technologies andsecuring and proposing alternative products• Diversify concentration in specific regions by accelerating expansion into new
regions and markets

Securing criticalmaterials
Digitization anddata utilization

Technology andR&D

Sustainability(2) Other risks
related tobusinessfoundation• Maintain stable relationships with key suppliers, consider multiple procurement
sources and alternative products, and invest in augmenting supply capacity• Plan and promote DX strategies, develop elemental technologies, and train andsecure digital human resources focused on department dedicated to DX
promotion• Strengthen technology infrastructure, introduce virus detection andcountermeasure tools, and bolster security education

Prioritizing the safety of human life
Human life comes first, and our top priority is to confirm the safety and well-being of officers, employees, and their families.

Ensuring the safety of the community

Rapid restoration of business

Safety• Risk of serious occupational accidents and injuries during
construction and production activities• Establish, operate, and upgrade an occupational safety and health management
system• Implement safety training and information sharing on the status of work-related
accidents and improvement measures

Product quality,etc.

• Risk of serious quality issues with products and services• Upgrade quality management system, strengthen supplier quality surveys,
improve production processes, prevent recurrence through horizontal deploymentof nonconformity information, and upgrade various types of insurance

Infectious
disease• Risk of significant impact on business activities due to major
natural disasters such as earthquakes and typhoons• Risk of restrictions and delays in business activities due toinfectious diseases that are unforeseen or exceed expectations• Formulate business continuity plan (BCP) for major business, expand and broaden
BCP, and strengthen management systems Group-wide• Establish and implement strategies to ensure business continuity based on
experiences with COVID-19

Compliance andinternal control• Risk of detection of legal or compliance violations or significant
deficiencies in internal controls related to financial reporting• Distribute messages from the Representative Director and President and enhance
employee education• Work to disseminate Organo Group Company Code of Conduct• Direct the Compliance Committee to establish a compliance system and education plan
• Work to develop and disseminate a whistleblowing system in Japan and overseas(3) Risks related to shareholders
and stock

Basic Policy• Promote materiality initiatives through the Sustainability Committee andSustainability Implementation Meeting• Promote education for digital human resource development in addition to
rank- and function-specific training• Promote the creation of a workplace where diverse human resources can play anactive and rewarding role

• Risk of infringement of the Group’s intellectual property rights orunintentional infringement of intellectual property rights of othercompanies by the Group• Risk that changes in the capital policy or management strategyof the parent company, Tosoh Corporation, may affect theGroup’s business development or stock priceIn addition to formulating a BCP to minimize damage and ensure business continuity in the event of a large-scaledisaster such as a major earthquake, we are working to improve the effectiveness of our BCP by preparing for
emergency situations and implementing education and training. Our basic policy for business continuity is as follows.

We prioritize safety at company facilities and the surrounding areas as well as the prevention of secondary disasters
while coexisting with the community.

• Risk of long-term decline in competitiveness of the Group in theevent of a failure to secure and train human resources

DisasterBusiness Continuity Plan (BCP)• Expand R&D Center, plan for R&D based on technology development roadmap ofcustomers, and promote open innovation

Securing humanresources

Intellectual
property rights

49• Risk of price hikes, procurement difficulties, and longer key
material delivery times dependent on specific suppliers• Risk of deteriorating business performance due to delays indevelopment of digital services and measures to improve
operational efficiency, and risk of information system
malfunction due to factors including system failure and leakageof confidential information• Risk of difficulty in implementing growth strategies due tofactors including delays in technological development requiredby the market and customers and delays in the introduction of
ICT and AI technologies• Risk of difficulty in addressing sustainability issues due todelays in the development of products and services to mitigate
environmental impact

The Group conducts business activities based on the idea that safety and compliance are necessary for the survivalof the business. In addition, the Company has established the Organo Group Company Code of Conduct as thebasic action guidelines to be observed by the Group’s employees. In addition to Japanese and English versions, it
has prepared local company versions in Malaysia, China, Taiwan, Thailand, and Vietnam and shared them with
officers and employees of the Group in Japan and overseas. The Company also conducts a biennial survey for its
officers and employees to confirm the degree of implementation and observance of the Company Code of Conduct.
The results are reported to the Board of Directors and employees in an effort to foster compliance awareness.
A special committee established as an organization for promoting compliance is responsible for formulating andimplementing a compliance education plan, investigating compliance issues, and considering corrective measures.
Moreover, the Company established a whistleblowing system to ensure the effectiveness of compliance through theearly detection and correction of improper acts. And, in addition to the Company’s internal contact point, it hasestablished contact points with Audit and Supervisory Board Members and external lawyers to receive reports andrequests for consultations. The Company is also promoting the development of local whistleblowing hotlines
overseas, and it is launching operation of an internal whistleblowing system in Malaysia, China, Taiwan, Thailand,
and Vietnam.
As a material issue indicator (KPI), the completion rate for compliance-related training was 100%. In FY2022,
however, 5 out of 18 required courses did not reach this target. Those who have not completed the courses are
required to take them the following year, and a follow-up system has been established to prevent incompletion.

• Protect intellectual property through proactive filing of patent applications inJapan and overseas, and regularly monitor the status of applications filed by othercompanies, including those overseas• Mitigate the impact of changes in the capital policy, etc. of Tosoh Corporation bycontinuing to communicate appropriately with the parent company

We will swiftly assess the damage to our facilities and offices as well as built properties or those under construction,
and we will take prompt recovery action to minimize adverse effects on business and reputational risk associated witha suspension of operations. We will work to continue infrastructure-related businesses in particular whose suspensionof operations would threaten human life, those that support societal infrastructure, and those that are considered
important in each business unit. We will contribute to our customers’ business continuity by thinking and acting inaccordance with our own business continuity.

Review of BCP
We regularly conduct training and education and continuously review and improve the BCP with the aim of becoming acompany resilient to risks such as disasters.

Initiatives to Prepare for Large-scale Disasters
To quickly and efficiently confirm the safety of employees in the event of a disaster, we have introduced a safety
confirmation system that sends safety confirmation emails to employees in affected areas according to disaster
information. To ensure the effectiveness of the system, in September 2023, all employees were trained to respond to
the safety confirmation system.
Emergency supplies such as rations, drinking water, blankets, medicine, and toilets are provided at major locations toensure the health and safety of employees and office hygiene in the event of a disaster.

ORGANO Group Report 2023

50

Sustainability and the Organo Group

Governance

Officers (as of June 29, 2023)
Directors

Audit and Supervisory Board Members

Masayuki Yamada

Yasutoshi Nakayama

Nobuyoshi Suda

Yoshihiro Tajitsu

Wataru Higuchi

Hirohito Kodama

President
Representative Director
President and Executive
OfficerManaging Director andExecutive Officer
President of Industrial
Plant Business
Senior General Manager
of Electronics Division

Managing Director andExecutive Officer
President of R&D andEngineering

Audit and Supervisory
Board Member(Full-time)

Outside Audit andSupervisory Board Member
LawyerCertified Public Accountant

Outside Audit andSupervisory Board
MemberApr. 1985	Joined Toyo Soda Manufacturing Co., Ltd.
(currently Tosoh Corporation)
Jun. 2019	Director and Executive Vice President, General
Manager of Research and Development Planning,
President of Specialty Group, and President ofEngineering Group of Tosoh Corporation
Director of the Company
Jun. 2021 Senior Managing Director and Executive Officer
Jun. 2022	Director and President (Representative Director)
President and Executive Officer (current position)

Apr. 1984 Joined the Company
Jan. 2014	Managing Director of Organo (Asia) Sdn. Bhd.
Jun. 2016	Executive Officer of the Company
Jun. 2018	Director and Executive Officer, Deputy President ofIndustrial Plant Business, and Senior General
Manager of Plant DivisionJun. 2021	Managing Director and Executive Officer, Presidentof Industrial Plant Business, and Senior General
Manager of Electronics Division (current position)

Apr. 1984 Joined the Company
Jan. 2013	Representative Director and General Manager ofOrgano (Suzhou) Water Treatment Co., Ltd.
Jun. 2017	Executive Officer, General Manager of Corporate
Strategy and Planning Dept., Corporate
Management and Planning of the Company
Chairman of Organo (Vietnam) Co., Ltd.
Jun. 2019	Director and Executive Officer, President ofCorporate Management and Planning and General
Manager of Corporate Strategy and Planning Dept.
Jun. 2021	Managing Director and Executive Officer, Presidentof R&D and Engineering, and Senior General
Manager of R&D Center
Jun. 2023	Director and Managing Executive Officer, Presidentof R&D and Engineering (current position)

Apr. 1985	Joined Toyo Soda Manufacturing Co., Ltd.
(currently Tosoh Corporation)
Apr. 1995	Corporate Control & Accounting
Dec. 2005	Corporate Control & Accounting and New System
Project Team
Jan. 2008	Corporate Control & Accounting
Jun. 2010	Outside Corporate Auditor of PLAS-TECH
CORPORATION
	Outside Corporate Auditor of TOHO ACETYLENE
Co., Ltd.
Corporate Strategy of Tosoh Corporation
Feb. 2013	General Manager of Audit & Supervisory Board
Secretariat
Jun. 2019	General Manager of Auditing
May 2022	Vice President, General Manager of Auditing
Jun. 2022	Executive Officer, Deputy President of Corporate
Management and Planning of the Company
Jun. 2023	Audit and Supervisory Board Member (Full-time)(current position)

Oct. 1993	Joined Deloitte Touche Tohmatsu (currently
Deloitte Touche Tohmatsu LLC)
Apr. 1997	Registered as Certified Public Accountant(excluding the period of legal training) (current
position)
Oct. 2002	Registered as Lawyer (Dai-Ichi Tokyo Bar
Association) (current position)
	Joined SEIWA KYODO LAW OFFICE (SEIWA
MEITETSU LAW OFFICE)
Oct. 2007	Partner
Jun. 2016	Outside Director (Serving as Audit and Supervisory
Committee Member) of Marubeni Construction
Material Lease Co., Ltd. (current position)
Oct. 2018	Representative Partner of Ootemon Law andAccounting (current position)
Jun. 2019	Outside Audit and Supervisory Board Member of
the Company (current position)
Oct. 2019	Executive Officer of Advance Residence
Investment Corporation (current position)
Mar. 2022	Inspector of The Professional Golfers’ Associationof Japan (current position)

Tetsushi Honda

Keikou Terui

Kenji Hirai

Director and Managing
Executive Officer
President of Corporate
Management andPlanning

Outside Director

Outside Director

Apr. 1986 Joined the Company
Apr. 2012	Managing Director of Organo (Asia) Sdn. Bhd.
Jun. 2018	Executive Officer, Senior General Manager ofPower Plant Division, Industrial Plant Business of
the Company
Jun. 2020	Executive Officer, Senior General Manager of R&D
Center, R&D and Engineering
Jun. 2021	Director and Executive Officer, President ofCorporate Management and Planning and General
Manager of Corporate Strategy and Planning Dept.
Jun. 2023	
Director and Managing Executive Officer, Presidentof Corporate Management and Planning (current
position)

Apr. 1981	Joined Sagami Chemical Research Center(currently Sagami Chemical Research Institute)Apr. 1990	Senior Research Fellow
Apr. 1998	Senior Fellow
Jan. 2002	Vice President
Apr. 2004	Vice Chairman of the Board, President
Dec. 2018	Vice Chairman of the Board (Representative
Director), President
Apr. 2019	Vice Chairman of the Board (Representative
Director), Research Advisor
Jun. 2019 Outside Director of the Company (current position)
Jun. 2021	Research Advisor of Sagami Chemical ResearchInstitute

Daisaku Abe

Nobuko Hanano

Outside Director

Outside Director

Outside Director

Apr. 1980 Joined The Industrial Bank of Japan, Limited
Jun. 2019	Deputy Chairman and Executive Officer, Head ofInternal Audit Group and Officer in Charge ofSpecially Assigned Matters of Mizuho Financial
Group, Inc.
	Director (Audit and Supervisory Committee
Member) of Mizuho Trust & Banking Co., Ltd.
	Director (Audit and Supervisory Committee
Member) of Mizuho Securities Co., Ltd.
	Outside Director of Mizuho Leasing Company,
LimitedApr. 2020	Administrative Officer of Mizuho Financial Group, Inc.
Jun. 2020	Director and Chairman (Outside Director) of Mizuho
Leasing Company, Limited
Jun. 2022	Executive Adviser (current position)
	Outside Director of NIPPON STEEL KOWA REALESTATE CO., LTD. (current position)
Jun. 2023 Outside Director of the Company (current position)

Message from Outside Director

Toward the Future

Morifumi Wada

Mar. 1978 Joined EIKEN CHEMICAL CO., LTD.
Apr. 2005	General Manager of Production Planning & Control
Division, Production Division and General Manager
of Procurement Department
Jun. 2006	Executive Officer, General Manager of Production
Planning & Control Division, Production Division
and General Manager of Procurement Department
Apr. 2007	Executive Officer, General Manager of Nogi Plant,
Production Division
May 2007	Executive Officer, General Manager of Nogi Plant andGeneral Manager of Togane Plant, Production Division
Apr. 2011	Vice President and Executive Officer, General
Manager of Nogi Plant and General Manager ofTogane Plant, Production DivisionJun. 2011	Director, Vice President and Executive Officer,
General Manager of Nogi Plant and Director ofTogane Plant, Production Division
Apr. 2012	Director, Vice President and Executive Officer,
General Manager of Sales DivisionJun. 2014 Director, President and CEO
Jun. 2021 Director, Chairman and CEO
Jun. 2022 Director, Chairman (current position)
Jun. 2023 Outside Director of the Company (current position)

51

Apr. 1979	Joined Ministry of International Trade and Industry(currently Ministry of Economy, Trade and Industry)
Jul. 2008	Deputy Minister for Technical Affairs, Minister’s Secretariat
Jan. 2011	Director-General of Kanto Bureau of Economy,
Trade and Industry
Apr. 2012	Director-General of Regional Economic and Industrial Policy
Aug. 2013	President of Japan Utility Telemetering Association(current position)
Oct. 2013	Senior Research Associate of Chemicals
Evaluation and Research Institute, Japan
Jun. 2014	Director of Union of Japanese Scientists andEngineers (current position)
	Outside Director of Ube Industries, Ltd. (currently
UBE Corporation)
Mar. 2016	Outside Director of Bridgestone Corporation
Jun. 2016	Director of Chemicals Evaluation and Research Institute, Japan
Outside Director of the Company (current position)
Aug. 2018	Director of Japan Industrial Safety Competency
Center (current position)
Jun. 2020	Executive Director of Japan Chemical Innovation
and Inspection Institute (current position)

Apr. 1981	Joined Kagome Co., Ltd.
Jun. 2006	Executive Officer, General Manager, Corporate
Planning Department
Jun. 2008	Director & Executive Officer, General Manager,
Research & Development DivisionJun. 2011	Director & Managing Executive Officer, General
Manager, Research & Development Division
Apr. 2013	Director & Managing Executive Officer, CEO, Asia
Business Company
Oct. 2015	Director & Managing Executive Officer, General
Manager, Shared Service Preparation Office
Apr. 2016	Director & Managing Executive Officer	President & Representative Director of Kagome
Axis Co., Ltd. (Representative Director)
Mar. 2018	Outside Audit & Supervisory Board Member ofDynapac Co., Ltd.
	Director of Kagome Co., Ltd. (Full-time Audit andSupervisory Committee Member) (current position)
Mar. 2020	Outside Director of Dynapac Co., Ltd. (Audit andSupervisory Committee Member) (current position)
Jun. 2023	Outside Audit and Supervisory Board Member of
the Company (current position)

Apr. 1991 Joined Nomura Research Institute, Ltd.
Oct. 2000	Registered as Lawyer (Dai-Ichi Tokyo Bar
Association) (current position)
Joined KOHWA SOHGOH LAW OFFICES
Oct. 2004 Partner (current position)
Mar. 2019	Outside Audit and Supervisory Board Member,
Kanro Inc. (current position)
Apr. 2020	Auditor, Drone Service Promotion Association(current position)
Jun. 2021	Outside Audit and Supervisory Board Member of
the Company
Jun. 2023	Auditor of Japan Hockey Association (current
position)
Outside Director of the Company (current position)

I served as an Outside Audit and Supervisory Board Member for two years
starting in 2021, and I have now been appointed as a Director.
During this time, the General Meeting of Shareholders held in June 2023 madequite an impression on me. With the lifting of self-imposed restrictions due tothe pandemic, many shareholders were in attendance, and questions wereasked about overseas business expansion, women in managerial positions,and our social contributions. This gave me a sense of their expectations for theCompany and again reinforced my understanding of my responsibility for the
future as a director.
We live in times in which not changing is the same as regressing, so we canstrongly sense the need to clearly demonstrate our path to the future andadvance along that path with a sense of urgency. To achieve this, management
must strengthen its ability to respond to long-term risk (TCFD), bolster its
pioneering efforts in an era of change (diversity), and reinforce the structurethat supports and, at times, propels these efforts (governance).
The cutting-edge technologies Organo has cultivated in water treatment willcontinue to expand, and we will work tirelessly to boost our corporate value.

Nobuko Hanano
Outside Director
LawyerORGANO Group Report 2023

52

Sustainability and the Organo Group

Environment
Environmental Philosophy and Basic Environmental Policy

Addressing Water Resource Issues and Protecting Biodiversity

Environmental Philosophy

Basic Concept

Recognizing that the preservation of the earth’s environment is of the greatest importance for every human being,
Organo contributes to human coexistence and symbiosis with Earth’s beautiful environment in every facet of its
business operations.

Water is the source of life. It circulates around the Earth, nurturing a variety of plants and animals. Protecting ourwater is protecting life. At Organo, we have technology to protect water.
By managing the water used by the Group and providing our customers with technology to protect this precious
resource, we are promoting the sustainable use of water resources and protecting biodiversity.

Basic Environmental Policy
We will be aware of the environment surrounding
all industrial activities and continue to preserveand improve the environment through alltechnical and economic means possible.

Product
environment

We will develop product manufacturing technologies
that will reduce the burden on the environment.

Observance of laws
and establishment of
our own standards

We will observe laws, regulations, and agreements
concerning the environment. We will also establish
our own standards and do our best to preserve theenvironment in accordance with these standards.

Environmental
monitoring

We will inspect the environment within ourcompany and work to improve our environmental
preservation activities.

Production
environment

We will strive to conserve resources and energy, tominimize waste and to recycle the waste producedin every aspect of our business activities.

Comprehensive
involvement

We will educate our staff and encourage in-house
publicity concerning environmental issues to promote
understanding and awareness of the environmentand of our own basic environmental policy.

Continuous
improvement

Management of the water we use

Recently, the use and conservation of water resources has been gaining attention as a global sustainability issue,
and we view the impact on our corporate activities of water resource depletion, river flooding, and water pollution asa risk.
The Organo Group is working to conserve water resources by effectively using water intake and maintaining andimproving the quality of wastewater around its business sites to ensure the sustainable use of water resources. We
will continue to contribute to environmental conservation through our business activities while keeping a close eye onwater-related risks.

Water Usage Volume and Wastewater Volume

Environmental Management

Unit

Environmental Conservation Structure
The Company’s policies, targets, and measures forenvironmental preservation are discussed and decided by
the company-wide Environmental Conservation
Committee. Each business site in Japan appoints an
Environmental Conservation Committee which establishes
the policies, targets, and measures for their own officebased on the Company’s targets and measures—as well
as specific issues—and performs environmental
conservation activities accordingly.

Initiative 1

Officer in charge of environment

FY2018FY2019FY2020

FY2021

FY2022

Water usage volumem3

516,352

542,256

539,185624,755

618,948

Wastewater volumem3

423,922434,603

461,591

538,819587,049* Targets for calculation: Head Office, R&D Center, Tsukuba Factory, and Iwaki Factory of Organo Corporation, and Main Factory of Organo Food Tech
Corporation* The water balance does not include evaporation or sprinkling, or products brought out of or into facilities.

Company-wide Environmental Conservation Committee
Secretariat: Environment, Safety and Quality Assurance Dept.

Initiative 2
Offices

Environmental Management System
Our environmental management system complies with national or public standards. We
conduct environmental conservation operations and activities at our offices in accordancewith the environmental management system, and we also perform internal environmental
audits.
Our Tsukuba Factory, where ion exchange resins are purified as one of our core materials,
has acquired ISO 14001 certification, the international standard for environmental
management systems.

Sustainable use of water resources and promotion of biodiversity conservation

By providing our customers with treatment and recovery technologies for wastewater, our Group contributes tomaintaining a healthy water cycle and securing water resources for industrial and daily water use. In 2022, we
identified “addressing water resource issues” and “protecting biodiversity” as material issues, and in 2023, weestablished two KPIs: the amount of wastewater treated by newly delivered Organo systems and discharged byplants, and the amount of water collected and reused by newly delivered Organo systems.
We will further promote the use of wastewater treatment technologies used to purify industrial wastewater beyond
legal requirements and wastewater recovery technologies used to reduce the amount of wastewater released intorivers, thereby promoting the sustainable use of water resources in society to protect a rich water environment where
diverse organisms thrive and preserve biodiversity.

Environmental Education
As part of the curriculum for new employee training andengineering technology training, the Company offers
courses on pollution prevention laws and regulations. It
also encourages employees to obtain national Pollution
Control Manager certification, increasing the number ofqualified individuals. In this way, the Company is putting
its environmental philosophy into practice.

53

Number of qualified Pollution Control Managers in FY2022*

Cumulative: 210*T otal of water quality-related Classes 1 to 4, air quality-related
Classes 1 to 4, and dioxin-related

ORGANO Group Report 2023

54

Sustainability and the Organo Group

Environment

Promotion of the 3Rs

Basic Concept
Climate change is a threat to the stability of society and the environment on a global scale. As an organization heavily
involved in water resources, Organo considers it a risk it should pay close attention to. Meanwhile, the Company
recognizes the growing demand for environment-friendly products and services as a business opportunity.
We actively work to mitigate and adapt to climate change, and we contribute to realizing a sustainable society by
optimizing energy usage related to our business activities and by providing products and services that contribute tolessening the effects of climate change.

Together with its stakeholders, the Organo Group aims to realize a sustainable society. As part of these efforts, we
identified promotion of the 3Rs as a material issue in 2022, and set the volume of sludge reduced through theapplication of Organo technology and products as a KPI in 2023. We will continue to use our technologies andservices to promote the 3Rs for waste generated through our corporate activities as well as those of our customers,
and make more effective use of resources and reduce our environmental impact to realize a recycling-oriented society.

Recycling Volume and Volume of Waste Generated

Initiatives

Unit

Scope 1 and 2 emissions in FY2022 increased 12% compared with the reference year of FY2021. The main factor
behind the increase was the launch of operations of a new laboratory building at the R&D Center in Sagamihara.
We worked to reduce emissions, however, such as by introducing renewable energy in electricity in January 2023
and in gas in March at the head office. Moreover, we revised our Scope 1 and 2 emission reduction targets for
FY2030 from 37.8% to 42%.
Scope 3 emissions in FY2022 increased 37% compared with the reference year of FY2021. The key factor was ourstrong business performance. This performance led to increased purchase and sales volume, which in turn led toincreased greenhouse gas emissions.
Energy consumption (crude oil equivalent)
We expect to complete the calculations of Scope 3 emissions for(including domestic and overseas group companies)
FY2021 and 2022 for domestic and overseas group companies by
(kL)
6,222
March 2024. This year, we were able to determine the Company’s
5,439
emissions, which gave us a clearer picture of the Scope 3
4,083
3,970
3,824
emission areas (categories) that are at high levels. Moving forward,
we will analyze this information to consider Scope 3 emission
targets.
FY2018Item

TargetResults for FY2021 (reference year)

Scope 1
and 2

42% reduction
Emissions: 10,324 t-CO2 (including domestic and(compared with FY2021
overseas group companies)
levels) by FY2030

Scope 3

Under review

Emissions: 558,991 t-CO2 (not including domestic
and overseas group companies)

Category

FY2020

FY2021

FY2022

Results for FY2022
12% increase (compared with FY2021 levels)• Emissions: 11,566 t-CO2 (including domestic
and overseas group companies)

37% increase (compared with FY2021 levels)• Emissions: 893,606 t-CO2 (not including
domestic and overseas group companies)

FY2021 (t-CO2)

FY2022 (t-CO2)

256,147

358,215

Category 2: Capital goods

8,650

8,454

Category 3: Fuel- and energy-related activities not included in Scope 1 or Scope 2

1,586

1,690

Category 4: Upstream transportation and distribution

6,078

6,179

Category 1: Purchased goods and services

Category 5: Waste generated through operations

1,527

1,309

FY2019
548

486

554

491

Volume of waste generated

t

471

737

679

617

636

* Targets for calculation: Head Office, R&D Center, Tsukuba Factory, and Iwaki Factory of Organo Corporation, and Main Factory of Organo Food Tech
Corporation

Expansion of Environmentally Friendly Products and Services
Organo received the Director-General Prize of the Agency of Natural Resources and Energy of the FY2022 Energy
Conservation Grand Prize for ORSMART CW, a DX-based energy-saving service solution for cooling water treatment.
This marks the fourth time overall and third consecutive year the Company has earned this award.
Cooling water is used in large volumes for applications such as large-scale air conditioning in buildings and factories.
One of the main obstacles in cooling water is microorganism-derived slime. The generation of slime not only leads toelectric power loss, but if it is allowed to rapidly grow due to the ambient environment and temperature, it can cause
high-voltage cuts, forcing operational shutdowns.
ORSMART CW monitors the temperature data of cooling equipment in real-time, and through the use of AI and aremote monitoring system, the service quickly and automatically controls the application of a chemical to inhibit
slime growth. This allows the operating environment to remain at optimal conditions at all times to ensure energy
savings and operation throughout the year. In a case study, electric power loss was reduced by 40.3%.
Cooling water treatment is required at various manufacturing sites—including air conditioning—and this service
contributes to energy savings in a wide range of fields.
Organo will continue taking on the challenge of developing energy-saving solutions to contribute to increased
corporate value.

295

292

Category 8: Upstream leased assets––

Using proprietary AI for optimal chemical
injection control

380

510

–

–

Category 12: End-of-life treatment of sold products

3,238

3,414

Category 13: Downstream leased assets

44,44236,966––

Category 14: Franchises
Category 15: Investments

–

–

6.0

Real-time monitoring of LTD*

Category 7: Employee commuting

476,435

Value provided by ORSMART CW

Features of ORSMART CW

142

236,505

FY2022400

143

Category 11: Use of sold products

FY2021tCategory 6: Business travel

Category 10: Processing of sold products

FY2020Recycling volume

Treatment using the fouling condition of the heat exchanger (LTD)as the index

Category 9: Downstream transportation and distribution

55

FY2019FY2018Optimal chemical injection amount according to heat exchanger
condition

High security centralized management service
From preliminary survey to treatment management

Employs
ORBLADE
series forcooling water
treatment
agent!

Winner of FY2020 Energy
Conservation Grand Prize

ORBLADE seriescooling water treatment agent
Features
Contains our new proprietary bactericidal
ingredients, an industry first
Abundant lineup offering 17 different types
Bactericidal ingredients are inorganic, withzero TOC and low environmental impact

Changes in LTD
Bldg. A conventional treatment (FY2019)
Bldg. A ORSMART CW (FY2021)

5.0

High-voltage cut area

4.0
LTD (°C)

Responding to Climate Change

3.0
2.0
May

1.0
0.0
Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Did not become high-voltage cut area throughout the year

Stable operation of refrigerator
and prevention of production
opportunity loss

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Power loss of refrigerator due to
LTD increase

40.3% reduction* Leaving Temperature Difference (LTD): Fouling index of heat exchanger at “refrigerant
condensation temperature – cooling water outlet temperature” of refrigerator

ORGANO Group Report 2023

56

Sustainability and the Organo Group

Society
Promotion of Occupational Safety and HealthRespect for Human Rights

Basic Concept

Basic Concept

As a company with a large amount of field work, we recognize the risk of serious workplace accidents. Safety is a
top-priority topic, and the Company established promotion of occupational safety and health as a material issue in
2022. It continuously promotes initiatives that enable employees of our group companies and business partners towork with peace of mind.

The Organo Group declares that it shall respect human rights and prohibit discrimination, and accordingly aims toact as a company that respects individuals and diversity, without discrimination based on nationality, gender, creed,
physical condition, or social status. Based on this foundation and as stated in Organo’s Long-Term Management
Vision, the Company is working to “proactively contribute to a better tomorrow by cultivating people today who will
improve upon the way things were done yesterday, as a company where all employees are energetic and passionate
about their work.”

Creating Safe Workplaces
In order to ensure the safety and health of its employees and to promote the creation of a comfortable work
environment, Organo has established a structure for safety and health management under the direct control of the
President and the role of each member pursuant to company regulations on safety and health management. The
Company is committed to properly maintaining safe workplace environments, preventing occupational accidents andtaking appropriate emergency measures, and conducting relevant education and training.
For plant installation work and handling of chemicals, Organo prepares documented instructions, performs safety
checks using checklists, and conducts scheduled safety patrols at construction sites and factories. The Company’ssafety patrols involve providing guidance on immediately taking corrective action when safety concerns are apparent,and ensuring that safety education is properly conducted. Organo further strengthens safety management practices by
providing guidance on voluntary safety activities to prevent accidents including hazard prediction prior to performing
tasks, and risk assessments. In addition, the Company posts safety newsletters on occupational health and safety on
the intranet to disseminate reports on the occurrence of disasters and remedial measures. To heighten health andsafety awareness and stimulate such activities, we present labor safety awards to business partners and internalbusiness offices to convey the message that safety is our highest priority, and we work to create safe workplaces.

Initiatives
The Organo Group Company Code of Conduct sets forth clear guidelines on respecting human rights, prohibiting
discrimination, and forbidding harassment. In 2022, we identified respect for human rights as a material issue. As the
KPI, we established a 100% completion rate of human rights-related training for participants enrolled at the end of
the previous fiscal year. To promote the creation of a workplace where human rights are respected, employees needto have a correct understanding of human rights. To that end, all employees undergo human rights e-learning training
including corporate ethics, compliance, and harassment prevention. Organo maintains and respects international
standards for human rights, and we hold in the highest regard human rights of all employees of the Group, as well as
everyone involved in its corporate activities. Furthermore, Organo continues to promote initiatives on respect forhuman rights to fulfill its corporate social responsibility.

Supply Chain Management

Workplace Accident Prevention Activities
The Organo Group established an occupational safety and health policy in which it places the safety and health ofworkers as the top priority in business activities and promotes the creation of a comfortable work environment. In
particular, we implemented activities to prevent workplace accidents based on the President’s message that “safety
is a higher priority than delivery dates, cost, and profit,” but
Number, frequency rate, and severity rate of
in FY2022, we had eight workplace accidents. Of these,
workplace accidents
seven are subject to the KPI of the material issue set in
FY2022. The increase in the number of accidents over past
FY2020
FY2021
FY2022
years is attributable to the inclusion of those of domestic
Number of workplace accidents*
6
7
8
group companies. Moreover, the causes of the accidents
Frequency rate of workplace accidents (%)*
1.02
0.68
1.36
included irregular work, falls, chemical injuries,
Severity rate of workplace accidents (%)*
0.004
0.004
0.036
complacency, insufficient checks, and inattention. We will*
Figureschangedtoincludedomestic
group
companies.
work to improve the safety level of the entire Group throughCalculation methods:
scheduled employee education and training while also
• Frequency rate: The number of incidents due to workplace accidents per 1 million
total number of hours worked; indicates the frequency of accident occurrence.
fostering employee safety awareness with the aim ofFrequency rate = (Number of incidents ÷ Total number of hours worked) × 1 million•
Severity rate: The number of workdays lost per 1,000 total number of hours worked;
eliminating serious lost time injuries.

CSR Procurement Initiatives
Amid interest from stakeholders on our overall business process as it relates to the creation and provision of
products and services, there was growing demand not only to promote the Organo Group’s CSR, but also topromote the CSR of the entire supply chain.
The Group revised the Organo Group Supply Chain CSR Promotion Guidebook formulated in 2015, and called on
business partners to engage in CSR initiatives and deepen the common understanding of the importance of these
initiatives. In 2022, we identified the strengthening of supply chain management as a material issue, and establishedthe number of main suppliers in compliance with the CSR Promotion Guidebook as the KPI. Our efforts areprogressing smoothly, and in FY2022, we completed surveys for 41 main suppliers. In FY2023 and beyond, theCompany will check the status of its customers’ CSR activities based on the Guidebook and provide support where
needed.

indicates the degree of accident severity.
Severity rate = (Number of workdays lost ÷ Total number of hours worked) × 1,000

Employee Health Initiatives
The Group considers the health of its employees as one of the most valuable management resources in achieving
sustainable growth. We provide lifestyle review counseling based on results of regular health checkups and offer
annual stress level checkups for all employees as mental health measures. Moreover, Organo employees haveaccess to counseling provided by specialists and registered nurses through the Company’s in-house consultation
center for when they have concerns about themselves, their colleagues, or their subordinates.

Engagement with Labor Unions

Organo Group Supply Chain CSR Promotion Guidebook

https://www.organo.co.jp/company/society/collaboration/ (Japanese only)

Organo Group Company Code of Conduct

Policy on the Conflict Minerals Issue

https://www.organo.co.jp/english/company/ecology/

https://www.organo.co.jp/company/society/mineral/(Japanese only)

The Company enters into collective bargaining agreements with Organo’s labor union and maintains harmonious
labor-management relations. Through regularly scheduled labor-management meetings with the participation of top
management, Organo strives to disseminate its management policies to its employees and ensure that opinions ofunion members are reflected in the Company’s management strategies and policies.

57

ORGANO Group Report 2023

58

Sustainability and the Organo Group

Society

Diversity Initiatives
Basic Concept

Basic Concept

The Organo Group prescribes “Ensuring a comfortable workplace where all employees can realize their full potential”
in the Organo Group Company Code of Conduct and declares that it shall respect the human rights, diversity, andindividual personalities of all employees and will not discriminate based on nationality, gender, creed, physicalcondition, or social status.
Moreover, to ensure employee diversity based on the concept that only through a mixing of diverse ideas can werealize innovations to improve the Company’s corporate value, we are working on various measures including
promoting the participation of women, employing people with disabilities, utilizing global human resources,
employing senior citizens, providing childcare support, and promoting workstyle reform.

We are undertaking various measures to develop human resources who can help us expand our business throughhigh value-added separation and purification as well as analysis and manufacturing technologies, and by providing
products and services that promote the creation of value and which resolve the challenges that confront industry andsociety. We are also cultivating people who proactively contribute to a better tomorrow and who will improve upon
the way things were done yesterday.
Our training system is transitioning from the conventional assigned training determined by rank to a system ofelective training, in which each employee performs a self-assessment to find the areas in which they may be lacking
and selects from a menu of training courses that they can take to improve themselves.
The Group has established a target of increasing annual per-employee training costs to ¥100,000 (about double thecurrent amount) by 2030 as a material issue. While actual training costs in FY2022 were half that, at ¥58,309 per
employee, we provide employees with a wide range of learning opportunities.
Moreover, human resource rotation and global personnel exchange are effective ways to promote careerdevelopment and reskilling. Attempts to strengthen psychological safety, such as through one-on-one meetings, areessential in human resource development. We believe that these efforts will lead to an increase in digitally-capabletalent and autonomous employees, and these personnel will transform the way we work.

Initiatives
Promoting theparticipation of
women

We are establishing maternity and childcare-related systems that exceed legal requirements so as toenable female employees of child-rearing age to balance childcare and careers, and we arepromoting the creation of a system that supports flexible workstyles. We established a Group material
issue to increase the number of women in managerial positions to 50 by 2030. (As of November 2023,
there were 26.) In recognition of these efforts, the Minister of Health, Labour and Welfare awarded theCompany with the Eruboshi certification, which is given to companies that promote an environment
where women can demonstrate their abilities and have an active role in the workplace.

Employment ofpeople withdisabilities

Organo is working to expand its employment of people with disabilities who, as of November 30, 2023, accounted
for 2.3% of the Company’s workforce.

Utilizing global
human resources

As Organo expands its operations overseas, it is promoting the employment and training of global humanresources to take advantage of diverse values and experiences in different cultures.

Development of
the internal
environment toensure diversity

Given that Organo’s workforce consists of a diverse range of employees possessing a variety of personalities andbackgrounds, the Company is developing an environment where all employees are able to fulfill their potential and realize
growth. Female employees have been assigned to the departments in charge of construction management, which previously
was staffed mainly by male employees, and consideration is given to diverse backgrounds, such as by augmenting
Japanese-language education for foreign national employees, providing a cafeteria, and establishing a prayer room.

Employingsenior citizens

The Company has introduced a reemployment program whereby it is possible to rehire employees up to the age of
70 so they can continue to work by leveraging the skills and expertise they cultivated even after reaching the
mandatory retirement age of 60.

Work-Life Balance
Organo has established various systems to support flexible workstyles and enhance the work-life balance of its
employees. We promote activities to eliminate long working hours and are working to create a system to support thehealth of the employees.
Reducing the number of employees exceeding the legal overtime limit is one of the Group’s material issues. To
address the issue of long working hours, for instance, we are reviewing the work execution system throughorganizational reform and utilizing DX to improve work efficiency. As a result, the number of employees who worked
more than 600 hours of overtime in FY2022 —thereby exceeding the legal limit—dramatically decreased.
Moreover, we established a childbirth and childcare leave system that exceeds legal requirements. For example,
employees are guaranteed full salary during maternity leave and leave for hospital visits during pregnancy as well as
their terms of prenatal and postnatal leave (six weeks before and eight weeks after childbirth). The rate of childcare
leave taken in FY2022 remained at 100% for female employees, and that for male employees dramatically increased
from 2.3% in FY2018 to 55.3% in FY2022. We also take into consideration employees’ life events, such as byintroducing a reduced working hour system for childcare that covers children up through the third grade of elementary
school, and by establishing a system that enables employees to change career paths and work in limited geographicalareas. Some of Organo’s female employees have even taken on managerial positions after returning from childcare
leave, evidence of the fact that the Company offers a stable environment conducive to women building careers.
In addition, Organo has introduced flextime options without core time, half-day paid leave systems and teleworksystems to enable flexible and efficient work styles, and is promoting the streamlining of operations utilizing ICT. As
part of the measures to improve the rate of use of paid leave, Organo has established paid leave incentive days andencourages employees to take extended vacations by combining paid leave with summer vacation and special paid
leave offered after 15 and 25 years of service.

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Promotion of Human Resource Development

Programs and Initiatives

Rankspecifictraining

New employee training

During the first half of roughly six months of training, employees acquire general knowledge
as members of society and regarding Organo’s technologies, and then in the second halfthey put into practice the technology and knowledge gained.

DX training

To promote DX, employees are trained to utilize digital technology for business.

Engineering Seminar
Basic Course (ESB)The ESB course involves technology field-specific training concerning Organo’s basic
technologies. Participants are able to equip themselves for future career opportunities by
gaining extensive knowledge on technologies that are not directly related to their work.

Career training

Participants cultivate the ability to independently grow by learning to take a proactive
approach to career development.

Management training

In 2021, we divided management courses into “division supervisory positions,” “expert
positions,” and “supervisory positions” to clarify the role of managers. Participants gainrole-based management skills.

Elective training

Selfdevelopment

Employees assess and identify the areas in which they work and select from a menu of
training courses that they can take to improve themselves.

Qualificationacquisition support
systemTo support employees who learn autonomously, the Company subsidizes a portion of thecost employees incur when acquiring one of approximately 300 different formal
qualifications. This encompasses target qualifications across a wide range of subject areas
such as technology, linguistics, and IT, with certifications that include professional engineer,
assistant professional engineer, and pollution control manager.

Organo University(correspondence
course subsidy system)

Organo University provides the opportunity to study by featuring 181 correspondence
courses across 10 fields of study including technology and sales courses necessary forbusiness, as well as management skills required at different levels of the corporate hierarchy.

Social Contribution Activities
Organo Group places emphasis on cooperation, collaboration, and building trust with communities, and actively
promotes social contribution activities in areas surrounding business locations.

Supporting the Art Para Fukagawa Chatty Art Festival
This unique art festival is a nationwide public art exhibition with the aim of realizing a society in which people withdisabilities and others live together, and it transforms the entire city of Fukagawa in Koto Ward, Tokyo, near our head
office, into an art museum. Since its initial year in 2020, Organo has participated as a supporting partner, and theCompany will continue to contribute to the development of local culture and art and to the promotion of social
participation by people with disabilities.

ORGANO Group Report 2023

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