CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Social | Producing an employee-friendly workplace

Diversity & inclusion
Basic approach

Project to promote employment of women

The “many trees of varying character” expressed in our Corporate
Philosophy are the very definition of diversity. Thus, our philosophy
itself could be considered the fundamentals behind our basic policy
on diversity & inclusion. We do business with respect for diversity byemploying and developing people from all walks of life, which includes
operating business overseas and actively enlisting female employees.

We enable female employees to demonstrate their skills andcapabilities, actively seeking out roles for them and creating
environments where they can contribute to the company. In ourGeneral Employer Action Plan which was formulated based on theAct on Promotion of Women’s Participation and Advancement in theWorkplace, we set three goals including specific numerical values for
current issues, and we are aiming to harness capabilities anddevelop careers in many different departments.
In fiscal 2021 we implemented a new system that makes it easy
to rehire personnel who resigned for personal reasons—such as
parental or caregiving responsibilities or work transfer of theirspouse—and can be immediate contributors once again. We also
conduct follow-up interviews with employees who joined as
experienced professionals and utilize what we learn from them tosolve problems in the workplace.

Global business operations
We began expanding overseas in the 1930s, and we now haveapproximately 70 overseas production plants and business facilitiesin 13 countries. In the process of doing so, we have constructed arobust global network by respecting the various values, practices,and national identities in the places where we do business andestablishing trusting relationships with the people.

Issues

Goals

1

1

Ratio of females
among all INOAC workers

Raise to 20% or higher

22

Ratio of female employees
in sales and technical roles

Raise to15% in sales roles and7% in technical roles

3

3

Usage rate of managers’
annual paid vacation

Raise toequal usage rate as that ofgeneral employees, 54.8%

Human resource development
Basic approach
At INOAC, we advocate the philosophy that diverse human resources
are the foundation for the continued existence of the company.
Rather than specializing in one particular business, we are an entitythat contributes to society by creating a diverse range of products
and services. By respecting the individuality of each employee whoconstructs these products and services, taking quick actions andmaking speedy decisions, we aim to develop human resources
capable of forming a vibrant global team with an abundance ofindividual character.

growth and to develop their subordinates. For employees themselvesto grow as professionals, they need to have dreams and visions. They
must enhance their own market value, fields of specialization, andexpertise. And for them to develop their subordinate humanresources, they need to clarify their subordinates’ targets and goals,
in addition to clarifying a road map and methods for enhancing theirmarket value and standards for their expertise. We aim to establish
human resources development that paves the way to a new era bypresenting a clear vision of the personnel that employees areexpected to become and implementing evaluation systems that
motivate them toward their own development.

Establishing a human resources system thatreflects the times

Global human resource development initiatives

Work-styles have changed along with social changes from Japan's
Showa Era that ended in 1989 and subsequent Heisei era that lasted
until early 2019 into the current Reiwa Era. We now live in an age inwhich employees each determine their own individual path. Our
vision for our new human resources system is to clarify the path andgoals required for all employees to achieve their own professional

In order to develop human resources capable of handling globalizedbusiness, we implement programs that enable an even higher level ofskills acquisition with a focus on younger employees who will drive
our future growth.
In these times of flourishing online interactions and training, theOverseas Trainee System which we launched in 2019 is producing

CSR REPORT 2022

professional growth and realizations that are unattainable in Japan byoffering employees the chance to actually go on-location, experienceand learn the culture and business practices first-hand, and receive
support from the overseas staff members during their work andtraining. Going forward, we are also considering restarting theOverseas Language Study Program which we launched in 2013 but
has been suspended due to the COVID-19 pandemic.

At a meeting during training in North America

21

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Social | Producing an employee-friendly workplace

Promoting work-life balance
We are actively working to support balance between work and family
life, to have an employee-friendly workplace and promote theadvancement of women.

Increasing our rate of annual paid vacation taken
Since fiscal 2021 we have been publishing our company goals andworking toward achieving the Japanese government’s target of atleast 70% usage of annual paid vacation days.

Company goals
All employees take at least 50% of annual paid vacation days inthe fiscal year they are allotted

Description of initiative
Create paid annual paid vacation schedules, communicate in theearly part of each month about the number of days which must betaken, and post results on the company intranet.

Reduced work hours for childcare
Our reduced work hours for childcare had previously applied toemployees raising children up to third graders in elementary school
and allowed them to work reduced hours (six-hour days) for up to
three years. However, in fiscal 2022 we changed the applicability toinclude children up to sixth graders in elementary school andremoved the three-year restriction on duration.

Other support systems to balance work and childcare(year enacted)• Paternity leave (before 1980)• Flextime system (1990)• Regulations regarding family care leave (1990)• Happy Holiday Leave (1991)• Regulations regarding childcare leave (1992)• Regulations regarding measures for maternity health management(1998)• System for paid half days off (2000)• Family support holiday leave (2005)• Sick/injured childcare leave (2005)• Amended regulations regarding childcare leave (leave periodextension) (2005)• Family Care Leave (2010)• Regulations regarding telecommuting (2020)

Human rights

Health management

Basic approach

Basic approach

We respect the Universal Declaration of Human Rights andinternationally recognized fundamental rights of workers, and we
dedicate effort to respecting human rights without being complicit inany human rights violations such as forced labor or child labor. We
also strive to create safe, comfortable workplace environments andare engaged in making improvements to that effect throughout ourcompany by implementing measures against long work hours,workplace harassment, and more.

In the past, employees were considered to be responsible formanaging their own health individually. However, the idea that thecompany is responsible for establishing environments whereemployees can be physically and mentally healthy at work has now
become pervasive. Improving workplace environments andpromoting health make individual employees feel more motivated fortheir work, which in turn makes the workplace livelier as a whole.
With all three parties—the company, employees, and healthinsurance society—working closely together, we aim to mitigate
health risks, prevent injuries and illnesses before they occur, andbalance the business of the company with the health management ofits employees.

Guidance in rectifying long work hours
For those who have worked long hours and employees deemed tohave health concerns, we follow the guidance of industrial physicians
and take actions including having the applicable employees receive
interview-style guidance and undergo regular or comprehensive
health checkups. Additionally, when employees are deemed to haveaccumulated fatigue from working long hours, we take theappropriate steps as a company such as providing guidance fromindustrial physicians about the necessary measures to maintain theirhealth once requested by the employees.

Measures against harassment
Workplace harassment is socially unacceptable behavior thatwrongfully harms employees’ dignity. At the same time, we also
consider it a disturbance that prevents employees from harnessing
their capabilities, interferes with order and performance of duties in
the workplace, and can impact our social reputation.
We have declared zero tolerance for any type of harassment,
whether expressed verbally or by attitude, or via email, the internet, orother means, and we are making committed efforts to prevent it. Inaddition, we administer an annual Power Harassment Questionnaire
for all employees, establish internal reporting systems, and organize
workshops for managers.

Health promotion initiatives
We are formulating annual schedules for the company as a whole
which include priority action items for each month. At each businessfacility, we are establishing promotion organizations, formulating
Mental Health Promotion Plans, and carrying these out. Working
together with the health insurance society, we are also promoting
employee health based on our “Three Pillars.”Three Pillars▶ Prevent illnesses before they occur

For each individual employee to be healthy and thrive for longer, it isimportant to regularly prevent illnesses before they occur as opposed
to only getting treatment after becoming ill. We provide assistance for
employees to stay healthy, including subsidies for comprehensive
health checkup costs, mental health courses, stress checks, andmore.
▶ Specific health checkups

These health checkups identify those who require health guidancefor preventing lifestyle-related diseases. For health checkup
categories, we use examination categories that can accurately
identify those who require specific health guidance, which includes
the addition of waist measurements to observe buildup of visceral fat.
▶ Specific health guidance

Those who have been identified in specific health checkups create
action plans based on guidance received from doctors, healthnurses, and registered dietitians, and make efforts to improve theirlifestyle habits.

* Flextime was changed from “with core time” to “no core time” on April 1, 2020.

CSR REPORT 2022

22CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Social | Producing an employee-friendly workplace

Safety and health / Disaster prevention
Principles and basic policy for safety

All INOAC Safety and Health Committee
meetings(1) Safety is the basis of the very existence of the company.
(2) All accidents and hazards are preventable.
(3) Safety is achieved through the awareness andresponsible actions of each employee.

As safety activities led by top management and attended by
all employees, we hold safety meetings to increase
company-wide awareness of safety, health, and disasterprevention, build organizational culture, and prevent therecurrence of accidents.
 Central Safety and Health Committee meetings: Heldfour times per year Field inspections by officers: Held twice per year Safety Practitioners Conference: Held four times per year Safety conferences: Held once per year
 Organizing safety presentations by outside instructors:
Held once per year Safety and Health Committee meeting at each location:
Held monthly

Based on the safety principles, we prioritize safety above all—and
this is demonstrated through action. When a risk becomes known,
our established practice is to “stop it, call it in, and wait.” Our yearly
activity plans include activities organized by the Ministry of Health,Labour and Welfare and monthly activities that past disasters havetaught us to be of critical importance. We strive to improve the safety,health, and disaster prevention levels at all of our locations byconducting repeated training and improving any weaknesses we findin our safety, health, and disaster prevention assessments.

KPIs• Total employee occupational
accidents (including no lostworktime)• Total accident frequency rate
• Total lost-worktime accident
frequency rate
-30% from previous year

• Severe employee
occupational accidents 0• Fires at businessfacilities 0• Having no more administrativeclassification III workenvironments at worksites

Applicablescope2021
result22Field safety inspection by top management

Japan

1.68
0.76

Overseas

16Japan0

Overseas0Japan0

Overseas0Japan

6 worksites

Developing safety-conscious workers
with the Safety Dojo
The Safety Dojo lets employees experience potential work
hazards in safe settings using 15 simulators that enable
them to see, hear, and feel the hazards. The experience
helps to build workplaces capable of achieving thezero-disaster standard by making employees more sensitive
to potential hazards, training their ability to predict them,and building habits in safe work practices. We also
introduced a virtual
reality (VR) systemand bring VR
equipment to eachlocation for on-site
interactive safetytraining.
Safety Dojo

CSR REPORT 2022

Initiatives for healthier environments
Managers are improving their skills andknowledge through initiatives that enable them tolead by example.
 Establishing outdoor smoking space to ensure
separation of smoking areas
Heat insulating pavement
 Taking environmental measures to reduce road(reducing road surface temperaturesurface temperature and lowering temperaturesby reflecting infrared rays)
inside plants via the Thermax ceiling cover method,
thermal insulation for furnaces, and more
 Organizing learning sessions and trainings byindustrial physicians and the health insurance
society Taking measures against heatstroke and extreme
heat, creating Wet Bulb Globe Temperature (WBGT)
Thermal insulation for furnaces
visualizations, and systematically improving
workplace environments
 Improving work environments and having no moreadministrative classification III (noise, organic &specified chemical substances, etc.) worksites
 Measures to prevent the spread of COVID-19• Implementing body temperature checking systems
at entrances
Body temperature checking• Arranging partitions in meeting rooms andsystem at entrances
discussion areas• Allocating CO2 measurement devices, air purifiers, and sanitizer liquid

Disaster prevention activities
We take action according to our Crisis Management Regulations to minimize
damage by natural and other disasters, execute accurate first responses, andensure early recovery.
 Large earthquakes• Measures to alleviate earthquake damage to buildings and facilities• Safety and disaster prevention equipment and stockpiles for earthquakes• Post-earthquake response• Stockpile of mattresses and other items to contribute to the community
 Measures against fires, storms, and floods• Prevention of fires and explosions at production sites• Preparedness and systems for dealing with storm and flood damage• Establishment of a weather information distribution system
 Disaster prevention education• Utilizing the Disaster Prevention Training Center andperforming disaster prevention training at worksites
 Disaster prevention agreements with local communities• Providing supplies such as water and mattresses
when disasters occur• Organizing disaster prevention events and participatingin disaster prevention training together with local
communities
Disaster Prevention Training Center23