Corporate Philosophy

Creating a beautiful forest,
comprised of many trees of varying character,rather than merely growing a single tall tree.
In our efforts to enrich people’s lives,
we at INOAC have specialized in not only a single business,but we have cultivated four business “seedlings”- polyurethane, rubber, plastics, and composite materials.
Today we have developed into a conglomerate,
supplying diverse products and services,
thereby contributing to society.

CONTENTS
01

Corporate Philosophy

Environment

GovernanceIntroduction

122402The history of INOAC

03

Our products04Message from the president

Feature Story
08

Initiatives of our Carbon
Neutrality (CN) Committee

CSR REPORT 2022

Applicability of report

Governance

Reportingperiod

This report was prepared based on the business activities of INOAC
Corporation during FY 2021 (January 1 - December 31, 2021).
* Also includes some information from FY 2020 and before, and from FY 2022.

SocialData & Statistics

Applicablescope

The business activities of INOAC Corporation on a non-consolidated basis,including certain domestic and overseas companies of the INOAC Group.

15

Improving value

26

ESG data & statistics

18Supply chain management

27

Company outline

Year & monthissuedNovember 2022

19

Communication with society

21

Producing an employeefriendly workplace

Guidelines
for reference

 Environmental Reporting Guidelines FY 2018 Edition
 ISO 26000
 GRI Standards for sustainability reporting
2016/2018/2019/2020

Environment01

CONTENTS

Feature Story

Introduction

Environment

SocialGovernance

Data & Statistics

INOAC Group History

Expanded as a leading company in foaming technologies
for comfortable life and a sustainable society
Since our founding in 1926, we established ourselves as Japan’s first-ever producer of polyurethane foam and have goneon to create an extensive range of products and services that make people’s lives better and more comfortable.
The growth of INOAC is also a history of development. For the sake of people and the planet, we continue challenging
ourselves to generate an abundance of new usage applications, while focusing particularly in recent years on consistently
conducting environmentally-conscious development.
 Implemented
polyurethane foam
technology from
Germany (1954)

Businesshistory Entered the piping
materials business Entered the construction
materials business Established MTP KaseiCo., Ltd.

 Established Inoue
Rubber Co., thepredecessor of INOUERUBBER CO., LTD. in
Atsuta Ward of Nagoya,Japan (1926)

 Entered the automotive
components business Started exporting IRC(Inoue Rubber Co., Ltd.)
brand tires and tubes

 Entered the bedding andchildcare products
businesses
 Established firstoverseas joint venture
Associated Rubber
Industries Ltd. in SriLanka

 Established Inoue MTP
Co., Ltd. (1980)

 Entered the consumer
products business Entered the officeautomation business Changed company
name to INOAC
Corporation (1990)

 Entered the nursing
care products
businesses
 Entered the furniturebusiness Entered the distribution
materials business Entered the packaging
materials industry

 Full-scale entry intoChina

 Entered the environment
business Bolstered and expanded
locations in SoutheastAsia

 Held International PU
Forum 2015 for the60th anniversary of thestart of manufacturing
polyurethane foam

 Established Jinno R&D
Center in Nagoya, Aichi
Prefecture Opened retail storesfor bedding and more,primarily within
business sites
nationwide

 Established theInternational
PolyurethaneTechnology Foundation

 Full-scale entry into theUS Established INOAC
Ryukyu Co., Ltd. as thefirst subsidiary of theINOAC Group inOkinawa

 Full-scale entry into thecosmetic containerbusiness Expanded Nagoya Head
Office and established
new company building Full-scale entry into
Southeast Asia

1920

1950
Launched Japan’s first-everproduction of polyurethane foam
Launched sales of Colorfoam
mattresses

1960
Performed on-site thermal
insulation work on tankers
and Shinkansen vehicles

1970
Developed cosmetic
bottles using injection
blow method anddecorative technology

1980
Developed in-mold coating(double-layered) integrally
molded instrument panels

1990
Developed foaming
polyurethane R-PUR methodfor road construction sites

2000
Produced MAPS®
eco-friendly interconnected
fine cell polyolefin foam

2010
Produced FOLEC® cleanpolyolefin rolled sheet foamusing the supercriticalfoaming technique

2020
Produced PureCell®
eco-friendly, ultrafine cell
foam sheet with
anti-yellowing properties

2023

Developed Ecolocel®
plant-based polyurethanefoam

Producthistory

CSR REPORT 2022

02

CONTENTS

Introduction

Our products

Feature Story

Environment

SocialAA

Governance

Data & Statistics

Right there beside you, making your everyday life better.
Now and into the future.
In everything from household consumer products, nursing care products, and everyday IT devices, to industrial
machinery used in production plants.
Also in housing and construction materials, an at civil engineering worksites. Even in cars and other means oftransport, and in infrastructure facilities.
INOAC materials come in many different forms. They can be found in every aspect of the neighborhoods thatsurround us, adding comfort to our everyday lives in various fields.
Nursing careproducts

Drone propellers

Sports bra cups

Yoga matsComputerchassis

Motorcycle& bicycle tiresPrinter rollers

LCD backcushions

Ink absorbers

Packaging materials

Wheelchair tires

Bicycle seat pads

Bedding

Incombustible
thermal insulator

Sofas

Water-stop materials
for waterproof
mobile devices
Insoles

Storagemediums

Wheels ofloading carts

Exterior partsfor automotive

CSR REPORT 2022

Covers forfarming equipment

OOO
CCC

IINN

Heat radiation materials
in electronic equipment
Vibration dampers
Industrial ducts
for attache cases

Crawler pads

Interior partsfor automotive

Kitchensponges

Food trays

Joint filler
in house walls
Cosmetic puffs
Cosmetic bottles03

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Message from the president

My aim is to grow many treesof varying character—the attractive products that
benefit people in their pursuits—
to craft a beautiful forest burstingwith diversity.

President & COO
INOAC Corporation

PROFILEMar 1985 Joined Inoue MTP Co., Ltd.
(now INOAC Corporation)

Feb 1991 Assigned to North America
Feb 2004 General Manager of the Technology Department,
Automotive-related Products Division
Oct 2007 General Manager of Quality Assurance Division,
Automotive-related Products Division
Oct 2008 President, Tohoku INOAC Co., Ltd.
May 2011 Automotive-related Products Division Supervisor(stationed in Thailand)Feb 2015 Managing Director & General Manager ofAutomotive-related Products Division
Apr 2018 Director
Apr 2019 Managing Director
Apr 2022 President & COO (Current)
CSR REPORT 2022

04

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Message from the president

Assuming the role of president

raise the level of our on-site capabilities to produce goodcore business. However, we cannot expect any growth inproducts at an even lower price. Another is to strengthen ourvehicle numbers in the automotive industry going forward,

My name is Yasushi Nomura. In April of this year, our previous

technology development capabilities to evolve what weparticularly in markets such as the Japanese market. Withpresident & COO Toyohiko Okina passed the baton and I

produce according to what our customers and society need.

that in mind, we will leverage technologies developed in theassumed the role of president & COO of INOAC Corporation.

My approach is to elevate our producing synergisticallyautomotive industry as we focus particularly on steadily

I joined our predecessor Inoue MTP in 1985, and since then I

through two-pronged efforts both in on-site capabilities anddeveloping attractive products that also benefit people in theworked mainly in the automotive-related products business.

technology development capabilities.

field of industrial materials, including consumer products,Going forward, we will be working as a team throughout thecompany, including to develop new products andbedding, and construction materials. I believe these will be theFields to focus our efforts

technologies with superior environmental performance.

“many trees of varying character” which will grow into a“beautiful forest” bursting with diversity.

We have three major strengths. First is our compounding

Need for horizontal connections between ourvertical organizations in different industries

Getting back to the true nature ofmanufacturing—producingtechnology. We are a materials manufacturer dealing in

Put simply, the business cycle in manufacturing consists of

who was the first to introduce production of polyurethane

We do business with customers in a variety of industries. Of

procuring materials (buying), adding value to themfrom Germany to Japan in 1954. The compounding

course, every industry requires a different approach, but there(producing), and marketing them to customers (selling). The

technology developed from that is our greatest strength.

are particularly large differences between the automotive andbusiness environment surrounding such operations is

Second is our manufacturing technologies that use these

consumer products industries in terms of how to approach

becoming increasingly harsh. We are currently struggling withmaterials to give added value. Third is the global network we

stable procurement and spikes in costs due to factors

have developed through the ongoing cycle of buying,including abnormal weather, international conflict, COVID-19,producing, and selling.

rubber, resin, polyurethane, and composites. For
polyurethane in particular, our current chairman is the pioneer

and the semiconductor shortage. If we were to pass on all of

Our corporate philosophy is to grow “many trees ofthese costs increases in the form of higher prices, we wouldvarying character” to craft a “beautiful forest” bursting withhave a hard time staying competitive or gaining market

diversity.

acceptance. There is importance to both the buying andThe tall tree among these is the automotive field. We haveselling functions in which we must negotiate with anotherbeen able to grow by having a presence in the automotive

party. However, since I have spent my career in positionsindustry where we have been able to leverage the threeclose to our manufacturing sites, my inclination is to focus

strengths mentioned above. This industry has been

attention and effort on the producing elements. I also thinkundergoing a period of upheaval said to occur only oncethis is the quickest path to our survival.

every century characterized by keywords such as CASE and

There are two approaches to producing. One is to further
CSR REPORT 2022

MaaS over the past few years, but it will continue to be our05

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Message from the president

Repeco®

PE-LITE® AB-100F

to share information (such as assessments, purchasing

past, we used to think of normal technology and productmethods, manufacturing info, etc.) between departments.

development as separate from eco-friendly development.

One example would be interior space in cars and living

However, now eco-friendly product development throughspace in housing. Both of these involve comfort-related needs

methods that contribute to carbon neutrality is a value thatand functionality needs. For cars, there are needs forour customers and society desire, and it has become a mainelectrification. In housing there are needs for energy savings

pillar of our development efforts. We are confident that thisvia thermal insulation. They also have their own respective

awareness and attitude are being instilled in each and every

needs in terms of sound (soundproofing, acousticalone of our employees.

insulation). When taking measures against sound in cars, theHere I will share an example of one such effort involving

frequencies that must be addressed in electric vehicles arepolyurethane, one of INOAC’s important materials. For a long

different from those in cars with internal combustion engines.

time, we have been recycling materials using slab material

We have been able to visualize these through analysis andcutoffs foamed within our production plants. These are being

propose the most effective measures to take. I believe that weutilized in a large number of commercial applications, from car

can take this expertise we have accumulated and utilize it inseats to living room products and more. Most recently, weother industries such as housing. Conversely, could we also

have developed slabs with 50% bio content and released

them from the point of receiving the orders through masstake the thermal insulator compositions and methods wethem as kitchen sponges and in clothing applications. Going

production.

developed for housing and apply them for thermal insulation

forward, we aim to apply this technology and have it releasedin cars? I think possibilities such as these exist.

to the market by working to get it included in manufacturers’

In automotive, there is advance development, and design,
prototype production, and evaluation are performed—all

For materials in particular, materials development is also

designs for products such as bedding, cosmetics, andaccording to a set schedule. We also work in parallel with thisone of our strengths to which we have been dedicating effortsautomotive. Over the long-term, we would like to moveto set up mass production through production preparations

for some time. As for the technology organization to handle

forward with efforts such as chemical recycling (returningand verification events.

these matters, we are handling the head office function to

products to their original substances). Chemical recycling has

On the other hand, for consumer products people often

ensure that we do not miss out on opportunities in various

produced results at the laboratory level, but there are stilltell us they “want something right away,” or they “wantindustries, without leaning too heavily toward any one

many issues such as profitability verification and establishingsomething that feels good or soft to the touch.” Quality andparticular industry.

partnerships that must be resolved to build a massprice are important, that goes without saying, but in thesecases we need sensitivity and quick action.
It is important to accommodate the business practices ofeach of these industries. However, even if the industries areproduction system. I would like to list up each of these

Taking on environmental issues and carbon
neutrality

How I aim to make our organizations

different, we could still miss out on unseen opportunities if we

We are actively pushing forward with efforts such as productoperate our organizations in a way that does not share or try

development using biomaterials and recycled materials. In theCSR REPORT 2022

medium- to long-term topics, verify them, and resolve them.

Once appointed as president, I thought a lot about what form
06

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Message from the presidentof governance (corporate governance and organizational

words and your smile while communicating the requirements.

communication between people will be increasingly importantmanagement) to implement going forward. As a result, II think that once the other person feels you are giving themin jobs that technology cannot replace (can only be performed

reached two simple conclusions.

that level of consideration, they will then accept you as aby humans).

First was that “the true nature of governance is honesty
and humility.” Do not misrepresent or hide the facts to makecolleague and cooperate with you in the true sense of theword.

INOAC’s constant theme: Innovation & Action

yourself or your own company look good. This applies bothThat is also the same at our facilities in Japan. I try to visit

when dealing with the outside world, and with colleagues in

the worksites as much as possible. When doing so, I make it

The name of our company is comprised of “Constantthe company. I also think this is connected to transparency ina point to talk to the employees there and say, “Goodinnovation = INO” and “Constantly turning that into action =management.

morning! How have you been lately?” At first they might beAC.” The communication capabilities that I mentioned are keycaught off guard, but if I persist, they will greet me back andto putting that into practice. We must also strive towardshould be able to do their jobs cheerfully and joyfully.”

sometimes share their opinions about problems at thetransparency in management with honesty and humility while

Trumpeting our contributions to society because we are in theworksites. They might even tell me, “Actually, the worksite

creating workplaces where all of our employees can engage“age of CSR” and waving our flag around will not amount towould be better if we changed this.” I gave this advice on thecheerfully in their work with a sense of purpose. I would like tomuch if our employees feel no fulfillment in their daily work.

spot to someone who came up and talked to me. He put it

pursue this, while keeping things simple. If we do, I am

We first need to create workplaces where individuals and theinto practice, and his efforts ended up receiving an award asconfident that our three major strengths will successfully leadpeople they work with can enjoy their jobs.

a QC activity. I still remember how inspired I felt when heto attractive products in different industries, and that we willhappily reported to me over the phone, “I did it. I won angrow from “many trees of varying character” into a “beautifulaward!” I have had many experiences such as this at ourforest.”

The other concept I arrived at was that “working people

Communication skills are keyworksites.
Good communication is absolutely essential to making that

If we advocate human resources development in ahappen. Many people see communication as mutuallycondescending, top-down manner, we tend to ignore theexpressing opinions, or “reciprocity.” That is not wrong, but I

ideas and feelings of the people we intend to develop.

think communication all starts with “listening.”

However, I think our employees each have their own ambition

I was blessed with opportunities to work in many different

and desire for professional growth in their work. They want tocountries and regions, including in North America andbe able to deliver even more value. As an organization, I think

Southeast Asia. These international experiences taught me

we need to avoid obstructing that motivation. Instead, wethe importance of communication. If I say things like, “I camemust guide it in the right direction and give it recognition.

from Japan (where Head Office is), so you must do as I say,”Within an organization, the requirements of the company willthings will not proceed the way I expect since the people

not necessarily align with the desires of its individuals. That isthere feel like they’re being talked down to. Respect eachparticularly why communication is so important. AI and DX will

person as an individual and show that respect with yourbe deployed in more places going forward, so I think theCSR REPORT 2022

On-site training in North America07