Contents
Corporate Philosophy

Contents / Corporate Philosophy

01

Company profile

Creating a beautiful forest,

Message from the president

02

Company outline

05[Feature Story] Eco-Friendly Product Development

comprised of many trees of varying character,rather than merely growing a single tall tree.

(1) Plant-Based Polyurethane Foam(2) Polyurethane Foam Chemical Recycling(3) Developing Cross-linked Polyethylene Foam
Recycling Technology®
(4) Carbon Fiber Recycling

In our efforts to enrich people’s lives,
we at INOAC have specialized in not only a single business,

06
07[Feature Story] CSR Activities Overseas

08
09
10

Harmony with the environment
Environmental management

11

but we have cultivated four business

Reducing our environmental footprint

13“seedlings” - polyurethane, rubber, plastics and composite materials.

Managing information on chemical materials

15

Today we have developed into a conglomerate,
supplying diverse products and services,
thereby contributing to society.

Improving value
Quality improvement efforts

16

Communication with society
Contributing to society and communities

17

Producing an employee-friendly workplace
Improving in-house systems

19

Human resource development

20

Safety and health / Disaster prevention

21

Supply chain management
Supply chain management

22

Governance & compliance01

CSR REPORT 2021

Governance23

Compliance24

Applicability of report25Company profile

Company profile

Feature Story

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & compliance

Message from the president

Helping to Achieve the Imperative ofCarbon Neutrality with Innovative
INOAC Technologies

The many trees of varying character
supporting corporate management
through COVID-19
Fiscal 2020 was a year that required action in response tochanges in the environment, as society and the economy
underwent major transitions due to the COVID-19 pandemic.
Since we at INOAC operate in many different business areas
and offer many different types of products and services
throughout the world, the pandemic impacted us in both
good ways and bad ways. In automotive-related business,orders decreased due to manufacturer shutdowns andproduction cutbacks. On the other hand, business related tohealth care and stay-at-home demand was robust. Based on
our corporate philosophy of “creating a beautiful forest,
comprised of many trees of varying character, rather thanmerely growing a single tall tree,” we were able to distributethe pandemic-related risk with our diverse business portfolio.
In production we had production cutbacks at some sites
while other sites were at near-full capacity for consecutive
days, so it was hard to coordinate personnel and other

INOAC CORPORATION
President & COO

Toyohiko Okina

resources in certain cases. However, we were able toimplement

on-siteimprovements

andproduction

automations that we could not start when orders were
continuously robust. Our technology departments werespending less time attending to customers, so they utilizedthat extra time to focus on more technologicaldevelopment. While these changes in the environment are

02

CSR REPORT 2021

Company profile

Company profile

Feature Story

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & compliance

Message from the president
likely to continue in fiscal 2021, our strength in diversifiedsocial change are also opportunities. I would like to think of thesesomething better will lead to innovation. INOAC has a history ofbusiness operations will see us through.

as chances to create the innovations of the future. These times ofcontinuous innovation in materials development from a mediumtransition to a new age are likely trying times not only for us, but

to long-term perspective based on that approach. Around 40

for our customers as well. I see these current circumstances, withyears ago, although it did not turn into a commercialized productsociety’s demands changing drastically on an ongoing basis, as

after the second oil crisis subsided, we established a technology

an opportunity as a materials manufacturer to contribute to thethat uses palm oil to produce biomaterials which can serve as

growth and development of our customers and society. As analternatives to petroleum materials. We have also established and

We believe that changes will be even more turbulent than last

example, for carbon neutrality it goes without saying that wetaken over materials development operations that are essential

year in fiscal 2021. There are four key points in the external

would struggle if we were to continue manufacturing things thefor what has been known until now as “recycle & reuse,” such asenvironment that we must focus on. The first key point is theway we do now. I am telling our employees that “there is antechnology to turn polyurethane products back into raw

shortage of semiconductors, which impacts automotive-related‘industrial revolution’ in materials taking place. We cannot remainmaterials, and technology to turn scrap tires into material that canbusiness. This situation had been expected to improve in

viable in this new age with our existing technologies andbe reused. New technologies and materials are not necessarily

mid-2021, but there has still been no improvement. The second

production systems.” This is because the world wants materials

accepted and put into use right away. They are undeniably

key point is the steep rise in prices of petroleum materials due towith different functionalities from what has existed until now, andsubject to the demand of the times. Still, we have emphasized

stoppages of supplies from raw materials (resin) producers

we will need to change everything in order to capture this new

development with an eye toward the future, continuously

resulting from the massive cold wave that hit the US in 2021. As ofdemand. The materials industry is inherently an industry in which

innovating and taking action. Now that carbon neutrality is an

November 2021, this situation is still ongoing. The third key point

you must always innovate in order for your development to keep

imperative that must be achieved, I believe that our technologies

is the fragmentation of supply chains in Asia due to the COVID-19

up with the times. The way things are now, you also cannot hope

have truly become indispensable. With  which we havepandemic. Lockdowns have forced automakers to cut back on

to survive without taking action to deal with issues on a global

already commercialized and released, as well as  flexible

production, and products such as automotive components are

scale. I think that all of our employees, not only those in charge ofpolyurethane foam made from at least 50% plant-based raw

not being exported. The last key point is the slowdown in exports

technology but also those in materials, equipment, plants,

materials, our bedding and assistive technology tools made ofand imports (logistics) due to the shortage of containers.

management, and other sections will need to come together topolyurethane for characteristics such as elasticity and air

generate and deal with innovation.

permeability, and more, we are actively involved in addressing

Staying focused with sense of urgency in thisage of great transformation

As the automotive industry enters an age of majortransformation, how will these problems evolve going forward?
With no end to the COVID-19 pandemic in sight and the impacts
still lingering, we will stay focused and act with a sense ofurgency.

Leveraging technologies established 40
years ago for carbon neutrality now
The name of our company “INOAC” originates from theComing together as a company to embrace the“industrial revolution of materials” and survive

combination of “INO” for constant innovation, with “AC” for action
to put that innovation into practical use. Innovation is not
something that can be achieved overnight. Engaging in many

Taking another perspective, turbulent external environments and03

CSR REPORT 2021

small business activities on a daily basis and refining them into flexible polyurethane foam made from plant-based raw materials

Company profile

Company profile

Feature Story

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & compliance

Message from the president
the issues of climate change and the increasingly aging societies

America. At all of our facilities in Japan and overseas we doborderless in global society, we must diligently apply ourselves,in the world. I am confident that we are building a track record asbusiness with a focus on hiring locally. And when major disasters

compete, and survive in the global arena. It has been said thata company capable of contributing to society.

have struck at our business locations, we have worked closely

absorbing global information and cultivating human resources inwith the local areas to assist reconstruction. As such, our locations

technology development are hard to do in an island nation likeare close-knit members of their respective communities which

Japan. However, at INOAC we have a deep-rooted culture of

could even be considered to be local plants and companies.

developing global human resources, and we provide work

Social contributions locally and globally as
the foundation of our businessOur mission as a manufacturer is not just to make products,
but to consistently provide good things to the world. Starting into young employees in particular.

At INOAC we are building an even better society and fulfilling our1985, INOAC has held the World QC & Improvement Competition

Finally, since we need local employees with global mindsets

social responsibility through activities such as developing thein Japan, where successful examples of quality control activities

for the further growth of our overseas locations, we conduct

next generation of resources and engaging in business that isfrom production sites in different countries are shared andglobal human resources development not only for Japaneserooted in communities.

production, technology, and quality control initiatives are spread

employees but for all.

Since our founding we have been creating jobs rooted inthroughout the INOAC Group, based on the commitment tocommunities both in Japan and around the world. Aside from thenever allow problems to arise in the products that we create. For

Higashi-Meihan area in Japan we also operate four plant facilities

many years we have also been providing scholarships toin the Tohoku region and six in Kyushu. Overseas we have a total

outstanding students in Japan and overseas, and contributingof 41 group companies in Asia, China, and North and Central

grant money for excellent research conducted by university
Our corporate philosophy of “many trees of varying character”

resources and research that will define industry, society, and thedescribes the breadth of our business domains, and can be

future itself. Some of our scholarship students in Europe, theconsidered the source of our growth. This means that even if

Americas, and Asia are already thriving.

some drastic change in the environment were to occur, we are

In order to develop our core business in polyurethane andForum organized by the International Polyurethane Technology
Foundation.

always prepared either with something that can handle it or withthe capability to develop what we need to handle it.
As indicated by SDGs goal number 17 “Partnerships for theGoals,” the world needs companies that create diverse

We consider all of these activities to comprise the foundation

partnerships and contribute to a sustainable society. Workingof our business. With companies now expected to contribute

together with all of our diverse customers and suppliers as a

toward achieving the SDGs, we in the INOAC Group are confident

partner, we will double our collective efforts as a company to helpthat we will continue actively contributing to society as we havecreate a carbon neutral society.

been since our founding.
Companies are made up of the people who work for them,and the development of human resources in-house is also one of
our highest priorities. Since business and technology are becoming
CSR REPORT 2021

Pursuing sustainability with our enduring
spirit of “partnership with society”

faculty members, supporting the development of human

help to improve its value, we also sponsor the International PU

04

experience in positions of responsibility at our overseas locations

Company profile

Company profile

Feature Story

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & compliance

Company outline■ Company name■ Capital■ Representatives■ Head office
Head Office (Tokyo)

Established

Employees

1954

1,845

16 companies Asia 34 companies
North/Central America 20 companies
CSR REPORT 2021

INOAC operates in five broadly-defined categories of business.
We make people’s lives more comfortable and enjoyablein many different life scenarios, offering a wide range of products
in various markets.

171.7 billion yen

North/Central AmericaUSA
12 companies
Canada 3 companies
Mexico 5 companies(as of December 2020)

Asia
Thailand13 companies
Taiwan3 companies
Indonesia 6 companies
Vietnam
5 companies
South Korea 1 company
Singapore 3 companies
Philippines 1 company
Malaysia
1 company
Sri Lanka
1 company

Major Overseas Locations

China

INOAC Materials
for a Comfortable Life.

Sales(as of April 1, 2021)

China
Mainland China 15 companies
Hong Kong
1 company

05■ Main Businesses

INOAC CORPORATION
720 million yen
Chairman & CEO Soichi Inoue President & COO Toyohiko Okina
2-13-4 Meieki Minami, Nakamura-ku, Nagoya, Aichi 450-0003
4F Osaki West-city Bldg., 2-9-3 Osaki, Shinagawa-ku, Tokyo 141-0032

2 Automotive-Related Products
We offer products for interiors andexteriors, products for car functions,and seat-related products that help
make cars safer and more
comfortable.
3 iRC Tire
This specialist manufacturer ofmotorcycle, bicycle, and wheelchairtires and tubes is the original
founding section of the INOAC
Group.

Housing & Construction
materials
We mainly operate in housing,construction, civil engineering, andenvironment-related business.
4

Domestic Locations

R&D Centers

31

Incompanies

1 High Performance Materials
INOAC operates in various fields
closely related to daily life, fromconsumer products to information
technology equipment and housing
and construction materials.

4

countries

5 Bedding & Furniture
We produce mattresses for a
comfortable night’s sleep, as well as
the “Smile” brand of nursing carefurnishings and the HUKLA furniture
brand.

Feature Story

Company profile

Eco-Friendly Product Development

Feature Story01

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & compliance

Carbon Neutrality throughSustainable Raw Materials is a flexible polyurethane foam made from at least 50%
plant-based raw materials.
This product offers two main advantages.
(1) Carbon neutrality that reduces dioxide (CO2) emissions
Carbon neutrality here refers to the approach of producing zero net

Raw materials

CO2 emissions through the use of plant-based raw materials,
balancing out the CO2 emitted when products are manufactured
and discarded with the CO2 absorbed in the growth process of theAbsorb

Photosynthesis Growth

Biomass
Makingproducts

plants resulting in no increases to CO2 released in the air over thelife cycle as a whole. We developed  based on this

CO2

Disposal
after useapproach.

Plant-Based Polyurethane Foam
Ecolocel(2) Reducing dependence on fossil resources
We have chosen a method that keeps the earth’s limited fossil
resources form being exhausted and has no impact of foodproblems due to the use of non-food plant-based raw materials.

Generate

Power & heat usage

Illustration of the carbon cycle when using plant-based raw materials* Image shown is only an illustration

Pursuing carbon neutrality
Due to the adoption of the SDGs (Sustainable Development
Goals), sustainable development is being seen as increasingly
important. Companies are now expected to develop products
made of sustainable raw materials instead of conventional
petroleum-based materials. We selected raw materials fromamong plants not used for food in order to proceed with
development based on the approach of carbon neutrality using
plant-based materials while also helping to achieve SDGs goal
number 2 “Zero Hunger.” To also contribute toward achieving
SDGs goal number 13 “Climate Action” we started developmenton materials with 50% or higher content of biomass (made fromat least 50% plant-based raw materials), which has less impact on
the environment.

Successful transition to mass production throughtrial & error
Raising the biomass content destabilizes foaming and thedeterioration of physical properties is inevitable, so biomass levelsof 30% had previously been the highest. Developing foam with a

06

CSR REPORT 2021

biomass level of at least 50% was therefore an extremely daunting
research theme.
We first began experiments with a laboratory scale. While thefoam did take shape, its strength was weak and its properties
were unstable, so we went through repeated trial and error. We
reselected the plant-based raw materials and the properties
finally stabilized after that, so we proceeded to try mass
production-based foaming. However, this was not the same as
the laboratory scale. Since it involves continuous production, we
encountered a variety of problems. Enlisting the help of the
Manufacturing Section in addition to the Technology Section, we
further improved the composition and optimized the production
conditions, and at long last we were able to reach the stage ofmass production.

Aiming for applications in the consumer products
marketThis foam is currently in use for making kitchen sponges, but wewill be adding features such as high impact resilience, lowresilience, and high hardness and deploying it for other usage
applications such as mattresses in the future.

* Image shown is only an illustration(pillows, mattresses, kitchen sponges)

Developers
Material Development Group
Urethane Technology Section
Foam Products Department
High Performance Material
Division

Hirotaka Wada

Kenichi Kato

Riona Sato

Feature Story

Eco-Friendly Product Development

Company profile

Feature Story

02

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & complianceFurther advancementsin eco-friendly technology
With heightening interest in global environmental issues suchas the SDGs, carbon neutrality, and marine plastic waste, we
believe companies—particularly manufacturers of resin
products such as INOAC—have an inherent responsibility totake action toward environmental conservation.
Our main product at INOAC is polyurethane foam. Since it isfoam material, much of its production is volume-based, and it isa resin that strongly needs to be recycled.
However, while some polyurethane foam waste is reused as

Polyurethane foammaterials and thermally recycled to be used as recycledmaterials and heat sources, some is also discarded without any
efficient use. For that reason, we are working to boost its

Regenerated polyol
Decomposition
agent

Decomposition

Impurities

Purification
Regenerated
polyolrecycling rate by developing chemical recycling technologies

Polyurethane Foam Chemical Recycling

to recycle the foam as raw materials.

Illustration of the polyurethane foam chemical recycling process* Image shown is only an illustration

Big obstacle in breaking chemical bonds

material. Doing so, we were able to establish a basic technology
at the laboratory level and verify that the foam could be

Polyurethane is a resin with thermosetting properties, making it

Balancing environmental conservation
with comfortable lifestyles

regenerated as raw materials.

different from thermoplastic resins such as polypropylene and

For regeneration into polyurethane foam, we have verified

Ultimately, we want to expand the scope of or recycling beyond

polyethylene terephthalate in that it can neither remelt northat the same performance as existing products can be achieved

polyurethane foam waste generated in production processes toreshape when heat is applied. It cannot be reused as raw material

even when around 20% of the raw material is replaced withalso include used products as well.

if its chemical bonds are not broken. Since it is difficult to breakrecycled material, so reuse appears viable.

We will continue striving to develop eco-friendly

polyurethane bonds once they are formed, chemical recycling ofThe challenge now is to scale up toward mass production. We

polyurethane resin presents a formidable challenge and has not

are currently implementing this at a pilot plant on the way toadvanced very far in practical application.

scale-up and are selecting the equipment needed for eachThis time, we attempted to lower the technical difficulty andprocess. After installing the equipment we plan to review theestablish a basic technology by targeting in-house polyurethane

reaction conditions and equipment conditions, and test out mass

foam waste with precise material composition.

production.

Establishing chemical recycling technology

efficiency to establish this as an energy-saving, clean chemical

technologies that can balance environmental conservation with
comfortable lifestyles.

Developers

We also intend to work on improvements to yield and energy
recycling technology that contributes even more toward
We selected compounds that promote the decomposition ofpolyurethane foam and studied methods to purify the degradedenvironmental conservation.

Photo comparing polyurethane foams
made from normal polyol andregenerated polyol
Left: made from normal polyol, Right: made from regenerated polyol

07

CSR REPORT 2021

Urethane Materials BasicTechnologies
Development Group
Global Technical Division

Tomotaka Hara

Feature Story

Eco-Friendly Product Development

Company profile

Feature Story

03

Developing Cross-linked Polyethylene Foam
Recycling Technology
Repeco®

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & compliance

Efforts to significantly
reduce waste
This technology recycles cross-linked polyethylene
foam (PE-LITE®) material cutoffs produced by INOAC. It
has established a cyclical system to re-employ material
cutoffs that used to be discarded, to use them as raw
materials. Thanks to this recycling technology, nearly allmaterial cutoffs can now be recycled into the original
product they were produced for, PE-LITE®. We expect
this to significantly reduce waste and improve usage
efficiency.
Global environmental problems have reachedcritical stages in recent years, and carbon neutrality has
emerged as a rallying cry. As an INOAC initiative, we are
now using the material cutoffs recycled through thistechnology as part of the raw materials used when
producing PE-LITE®. This has reduced the usage of newmaterial, ultimately reducing CO2 emissions andcontributing toward carbon neutrality.

Crushed powder
Material cutoffs

CrushingSpec
crushialized
erAdditives

Ex t

rud

er

Crosslink cleavage

Recycle to PE-LITE®
Repeco®

recycled material
cutoffs

Crushed powder

Repeco® composite
PE-LITE

Illustration of the PE-LITE® recycling process* Image shown is only an illustration

New products created from material cutoffs

of 0.075g/ml, and it was difficult to subsequently input into theand operating conditions, we created prototypes with dozens of

we aim to create a circular economy contained within a single

machines used for breaking crosslink since it was in a soft anddifferent patterns and found the optimal pattern.

plant for polyethylene foam. We are considering initiatives after

The production characteristics of PE-LITE® products inevitably

fluffy state. To overcome this, we worked together with a crushing

result in large volume of material cutoffs. We have longmachine manufacturer to develop a special new crushing processconceptualized the idea of recycling of these cutoffs for reuse as

which resulted in bulk specific gravity at least three times heavier.

raw materials, but there were just too many challenges to

We were then able to input the crushed foam into the machines

overcome.

for the next process.

In studies on crushing equipment for a different development

The second challenge was breaking cross-link ofprocess, we tried processing PE-LITE® material cutoffs and found apolyethylene. Extruders are used for this, and aspects such as thepossible solution to the high bulk specific gravity which had

specifications, screw structures, barrel structures, and operating

previously been the biggest roadblock to recycling the cutoffs.

conditions of the extruders are extremely important. First for the

From there, we began to study crosslink cleavage processes. After

extruder specifications, we could not simply use extruders madearound one year in development we established the technology,

by any company. The specifications of extruders differ by

and recycled cutoff material ® was finally complete.

company. There were differences in crosslink cleavage capability
in the extruders made by each manufacturer. Through the

Repeco®: the journey to completion

process of creating prototypes we were able to identify the

Having resolved these and other issues, we were able toestablish the new recycling technology.

08

that an extruder made by one particular company would be

The first challenge was crushing the foam. When simply

advantageous. That brought us to the point of installing the mass

crushing the foam it would be lighter with a bulk specific gravity

production machinery. Next for the screw and barrel structures

CSR REPORT 2021

locations, and ultimately collecting and reusing material cutoffs
generated by clients. In our development work, we are constantly

The final waste reduction

thinking about what would be good not only for INOAC but forsociety as a whole.

We are currently preparing the production lines for ®. First

Developers
Nanno Manufacturing Section& Technology Section
Olefin Department
High Performance Material
Division

Resin Materials Development
Group
Global Technical Division

important parameters, from which we were able to determine
There were two main challenges.

that to reduce final waste volume by rolling this out to our other

Yoshihisa Takamori

Naoya Okumura

Feature Story

Eco-Friendly Product Development

Company profile

Feature Story

04

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & compliance

Usage cycles to reduce
our environmental footprint
Conventionally, carbon fiber reinforced plastic(CFRP) materials are high-performance high-priced
composite materials that combine resins withcarbon fibers made from petroleum and coal. Here,
we reused high-value carbon fibers extracted fromdiscarded CFRP products (regenerated CFs) andcombined them with thermoplastic resin to develop
recycled carbon fiber reinforced thermoplastics(CFRTP). Since these high-performance resin materials
Resin pellets

offer the superior lightweight, high-strength
properties of carbon fibers and can be processed

Cooling
Recycled
CFRTP

Regenerated
carbon fiberand molded like normal plastics, they have great

Cutting

Compoundpotential for use in a wide variety of products.

Carbon Fiber Recycling

Illustration of the carbon fiber recycling process* Image shown is only an illustration

Cyclical use of carbon fibers

2. Materials that cost less but have the same characteristic values

Demand for CFRP has skyrocketed in recent years, and it has beenused in airplanes, cars, industrial materials, and a broad range of

production.

Third was the evaluation method. Since this was a material

Overcoming many challenges

Applications in various fields

that had not previously existed, we needed to establish analyticalother usage applications in place of metals such as iron and09

methods of supplying the raw materials and set the conditions
inside the extruder which enabled us to attain even dispersion.

through the use of virgin carbon fibers

evaluations for making products from it, as well as quality control

Currently, we are looking into usage applications for which olefin

aluminum. Many CFRPs are made from resins with thermosetting

There were three main challenges involved in development. The

methods. To accomplish this, we analyzed the carbon fiber

resins can be deployed. In the future, we also plan to deploy thisproperties which make them hard to reuse. Most of them are

first challenge was the adhesion of the regenerated CFs. Sincecontent and dispersion morphology in the material, and verified

technology in engineering plastics and offer ways to utilize these

discarded as industrial waste, causing an increasingly heavy

there is no functionality on the surface ofthe form of its thermal degradation during mass materialmaterial properties in many different fields.

impact on the environment. At INOAC we manufacture and sellregenerated

industrial CFRP products (RL-C), so we are grappling with thehigh-temperature treatment, their adhesion tosame waste problems. Carbon fibers are high-priced materials toresin is not robust. To overcome that, westart with, and large amounts of energy are also expended to

introduced compatibilizing agent with organic

manufacture them. Therefore, if carbon fibers could be usedfunctionality and applied surface treatment tocyclically in-house, it could help to reduce CO2 emissions.

the regenerated CFs.

CFs

that

have

undergoneWith that in mind, we began looking into compounds

Second was the compounding process to

combining thermoplastic resins with regenerated CFs obtained

combine regenerated CFs with resin. Since

when thermal treatment is applied to CFRP waste.

regenerated CFs have significant shape

Initial goals:

variations after processing, it was difficult to

1. Easy processing and molding of products

attain even dispersion. However, we studied

CSR REPORT 2021

Developers
INOAC Housing &Construction Materials
Co., Ltd.
Development Technology
SectionResin Materials
Development Group
Global Technical
Division

Shinji Yasue

Koji Ikeda

Yoshito Ochiai

Syu ChinFeature Story

Company profile

Feature Story

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & compliance

CSR Activities Overseas

What is Relay For Life?
It was 1985 in Tacoma, Washington in
the United States. One doctor walked
and ran around a track continuously for
24 hours, raising money for donations
to the American Cancer Society. Thiswas how Relay For Life activities began.
Its aim is to provide support by sharing
the awareness that cancer patients
face their disease 24 hours a day.
Events representing this activity which
generates hope and the will to live by
walking and talking together currently
takes place in about 30 countries
worldwide, in roughly 4,500 locations
and bringing in as much as 30 billion
yen in donations per year.

Specifically, the team is active throughout the year selling

Relay For Life activities have friends and family members who are

Donating to the American Cancer Society
for 18 consecutive years
through Relay For Life activities

homemade candies and snacks and holding events such as silent

battling cancer. We are tremendously proud to have continuously

auctions and raffles (for charity) to raise money. The money they

participated in activities such as these, raised funds, andraise is first used to support local cancer patients and survivors

supported cancer patients and cancer research as a team for 18(costs of doctor’s visits, transportation, wigs, life expenses, etc.)

years running.

INOAC GROUP NORTH AMERICA, LLC. (IGNA)

allocated to support cancer treatment research activities by the

How we joined Relay For Life
We joined Relay For Life and began donating to the American

End suffering from cancer
cancer survivors, those who are serving or have served as

Over the past few years, IGNA is one of the groups that has raisedcaregivers, and cancer victims who have lost their lives.

the most funds from the community. Relay For Life activities had
to slow down due to the COVID-19 pandemic, and IGNA had

Local communities generate hope

her mother had breast cancer. She was right by her mother’s side

10

American Cancer Society.

about the involvement and support from local communities forCancer Society as IGNA in 2001.
IGNA HR Manager Renea McCauley was told in June 1999 thatand stays in the community. Funds remaining after that are

been unable to organize events in the community for the past
two years. However, all groups in the community (Washington

until she recovered, through surgeries, radiation therapy, doctor

After returning to work, she lobbied for IGNA to get involved in

County) have expressed that they are continuing to raise funds

examinations, and more. The following year, she participated in

the activity, and the first volunteer team was launched at IGNA inand support the American Cancer Society.

Relay For Life for the first time. She was impacted deeply to learn

Springfield in 2001.

CSR REPORT 2021

Many staff members at IGNA in Springfield who participate in

Human Resources
INOAC GROUPNORTH AMERICA, LLC.
(IGNA)

Renea McCauley

Harmony with the environment

Company profile

Feature Story

Harmony with the environment

Improving value

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Governance & compliance

Environmental management

Environmental vision
INOAC respects the natural environment of our irreplaceable
earth and contributes to realizing an affluent society that isEnvironmental management system
In order to engage in environmental activities in an organized fashion, the Person Responsible for Environmental Management implements integrated
management related to the environment, under the direct control of top management. In addition, the company as a whole also engages inenvironmental activities under the direction of the Committee on Environment. We have organized specific section committees to handle industrial
waste and energy saving, and we coordinate environmental management through these committees while seeking further improvements in mitigating

comfortable to live in through technology harmonized with ourour environmental impact. As we strengthen the connection between environmental management and our main business in managing our objectives,

environment and environment-friendly corporate activities.

we are also supporting the appropriate efforts where changes are taking place, such as newly built business locations, buildings, and production lines.

Environmental policy(1) We observe environmental laws and regulations, thoroughly ensurecompliance, and engage in business activities that society can trust.
(2) We work to reduce CO2 emissions such as by saving energy, to help
achieve a carbon neutral society and prevent global warming.

■ Environmental Preservation Promotion System
Environmental
Preservation
Promotion SystemTopmanagement

ChairmanCommittee on
Waste Reduction

Committees on Waste Reduction

Person Responsible forEnvironmental Management

Committee on Environment

Committee on Environment

Chairman(Office)(Office)(Energy Management Supervisor)(3) We work on resource conservation, waste reduction and recycling tocontribute to a recycling-oriented society.

(by section)

Committee on Energy Saving Committee on Energy Saving

Environmental
improvement
activities
at each workplace(4) We properly manage chemicals that could impact the environmentand seek to preserve our environment by reducing risk.
(5) We actively develop products with less environmental impact,
contributing to the conservation of nature throughout the life cycles ofthe products.
(6) We engage in environmental management, educate employees about
the environment, implement environmental audits, and continue toimprove.
(7) We contribute to establishing asustainable society through local
environmental preservation work
as good corporate citizens.

Internal environmental audits
We implement internal environmental audits to check the

The Japan Quality Assurance Organization (JQA), an external certification body,operational state of our environmental management system.

conducts examinations to check if our environmental management system is

The audit team consists of two to three employees who havefunctioning properly in accordance with ISO 14001:2015.

completed the auditor training prescribed by the company. The

In conjunction, expanded examinations were conducted in FY 2020 at the Kirateam checks if the environmental management system is being

Plant and the Kyushu INOAC Yukuhashi Plant. No areas were found to be in needproperly operated, maintained and improved. We create audit

of improvement as a result, and the auditors determined that the system is being

guidance and take steps such as revising checklists tomaintained. Issues pertaining to legal and regulatory compliance efforts andemphasize efforts toward goal achievement and compliance incorrections to non-compliant matters were addressed in the overall findings.

order to improve the quality of the audits.

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CSR REPORT 2021

External environmental examinations

Harmony with the environment

Company profile

Feature Story

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & compliance

Environmental management

Summary of major activities in FY 2020

Compliance with environmental laws and regulations

The results of INOAC’s major environmental efforts in FY 2020 are shown in the table below. In terms of

At INOAC, we identify environmental laws andreducing CO2 emissions resulting from energy use, the Committee on Energy Saving continued to takeregulations that are relevant to our business activities,

the lead in various efforts. However, fluctuations in production volume due to the COVID-19 pandemic

and manage them on a daily basis. Throughresulted in lower production efficiency and we were unable to reach our targets. In terms of reducing

monitoring, measurement, and assessment at eachwaste disposal, we moved forward in reducing emissions, including recycling. However, we wereplant, we prevent environmental pollution andunable to reach our targets because market conditions for resalable waste have become stricter eachotherwise conduct environmental risk management

year. Volume of PRTR substances released decreased from the previous year due to progress in replacing

to ensure that we properly comply with laws andmaterials that contain these substances and other efforts, although not enough to achieve our goal.

regulations related to noise and industrial waste

Initiative

Reduce energy
consumption

Targets in FY 2020

Factory-related

Office-related

Factory-related
Reduce waste
Office-related
PRTR substances
reduction in releaseand transfer
amounts
Environmental
improvement
activities
Environmental
communication

Achieved in FY 2020

ResultCO2 emissions
52,172 t-CO2 (2020 result)CO2 emissions
59,149 t-CO2 (2019 result)CO2 emissions
170,100 kg-CO2 or less

CO2 emissions
315,601 kg-CO2

Measured units (CO2 treated amount/production sum) 0.0573 or less

Measured units
0.0763Treated amount
7,245 t (2019 result)

Water quality and soil

Water Pollution Prevention Act, Purification Tank Act, Sewerage
Act, Soil Contamination Countermeasures Act

Noise, vibration & odor

Noise Regulation Act, Vibration Regulation Act, Offensive Odor
Control Act

Chemical substances

Act on Confirmation, etc. of Release Amounts of SpecificChemical Substances in the Environment and Promotion of
Improvements to the Management Thereof, Poisonous andDeleterious Substances Control Act

Resource conservation & recycling

Act on the Rational Use of Energy, Act on the Promotion ofSorted Collection and Recycling of Containers and Packaging,
Act on Rational Use and Appropriate Management of
Fluorocarbons, Act on Special Measures concerning Promotionof Proper Treatment of PCB Wastes, Waste Management andPublic Cleansing Act

toenvironmental

preservation agreements with local government,
Disaster prevention

Fire Service Act, High Pressure Gas Safety Act

General & others

Factory Location Act, Act on Improvement of Pollution
Prevention Systems in Specified Factories, Radio Act* Local government ordinances are omitted * Some are abbreviated209,635 kg (2019 result)

170,961 kg (2020 result)

1,763 cases

Issuance of CSR report

IssuedTraining for emergencies
We identify accidents and emergencies according to thecharacteristics of each business facility, and periodicallyconduct training to prevent environmental pollution resulting

Not yet reached but progressing

from earthquakes, fires and leakage of oils and raw materials.
Target not reached* Business locations from which environment data is collected to summarize major activities are shown below.
Anjo Plant, Sakurai Plant, Kira Plant, Nanno Plant, Yana Plant, Ishimaki Plant,
Ikeda Plant, Ikeda 2nd Plant, Ohno Plant, Jinno Plant, Head Office (Nagoya/Tokyo),
Osaka Branch, Hanyu Plant, Jinno R&D Center

Disaster prevention trainings planned for spring and fall at the
Anjo Plant (Aichi Prefecture) were cancelled due to the
COVID-19 pandemic, but spill prevention training was
conducted in manufacturing sections on November 12, 2020.

INOAC Housing & Construction Materials Co., Ltd. Ibigawa Plant, Kofu Plant

In other facilities, training for emergencies and urgent

Kyushu INOAC Co., Ltd.

Yukuhashi Plant, Kikuchi Plant, Ukiha Plant, Kitakyushu Plant

circumstances is conducted on a preparatory basis.

Techno Foam Japan Co., Ltd.

Head Office, Saitama Plant

Kyushu Color Foam Co., Ltd.

Higashi Nihon INOAC Co., Ltd.

* The Kira Plant and Yukuhashi Plant (Kyushu INOAC) were added to the data collection range

12

adhering

CSR REPORT 2021

Air Pollution Control Act, Automobile NOx PM Law, Act on
Special Measures against Dioxins

Treated amount 570 kg

Cases of environmental improvements (total in entire
company) 1,227 cases or more

INOAC Corporation

strictly

including environmental laws and regulations.

Measured units ((amount emitted + amount transferred) / Measured units
production sum) 2.09 or less
2.27
Amount emitted + amount transferred
Amount emitted + amount transferred

Target reachedcontinue

Treated amount
6,847 t (2020 result)

Treated amount 1,462 kg or lessAir

treatment as part of our environmental management
system. In accordance with business ethics, we will

Intensity (CO2 emission/production sum) Measured units
0.548 or less
0.581

■ Major environment-related laws and regulations pertaining
to our business

Anjo Plant / Training for emergencies

Harmony with the environment

Company profile

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Harmony with the environment

Improving value

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Supply chain management

Governance & compliance

Reducing our environmental footprint

Reduce energy consumption

Efforts

To help to prevent global warming, we have been engaged in efforts to
reduce CO2 emissions by promoting energy saving. Specific measures being
taken include covering material drying ovens with heat insulation sheets to
reduce energy loss from heat escaping, installing inverters into cooling
tower fans to reduce energy usage, and using thermal insulation boards toinsulate buildings. Our CO2 emissions resulting from energy use in FY 2020
decreased by approximately 10% compared to FY 2019, and decreasedslightly in terms of intensity.

■ Key efforts to promote energy saving in 2020
Insulating buildings using INOAC’s  thermal
insulation boards

Installing inverters into cooling tower fansto reduce energy usage

Reducing energy usage by utilizing heat exhaustfrom compressors to heat rooms

Curtaining off areas of large workspaces
to improve the efficiency of air conditioning

Conducting air leakage patrols and eliminating air leakages
at each business location

Reducing energy loss from heat escaping
by covering material drying ovens with heat insulation sheets

Lining windows with INOAC’s  heat insulation
sheetsInstalling demand meters and visualizing demand
as a measure to address peak energy usage■ Energy use (CO2 emission (t-CO2))t-CO2

70,00060,00061,22562,562

61,69362,669

2016

2017

2018

2019

56,52550,00040,00030,00020,00010,00002020 Year
Thermal insulation of worksites with ■ Energy use intensity (CO2 emission (t-CO2)/production sum (million yen))
0.8
0.720
0.710
0.7
0.641
0.575
0.568
0.6
0.5
0.4
0.3
0.2
0.1
0.0

13

2016

CSR REPORT 2021

2017

2018

2019

2020 Year

Toyohashi Plant / Heat insulation sheets
as a measure for materials dryers

Curtaining off areas of workspaces■ Other efforts to prevent global warming
INOAC is working on preventing global warming from other(milk runs), a modal shift to railway and maritime transport,

perspectives as well. During the summer, we hold our Summer

and consolidation of distribution bases. Furthermore, we haveEco-style Campaign to educate our employees on how to saveinstalled and are operating solar power generation equipment

energy, such as by promoting “cool biz” energy saving attire.

(total installed capacity 5,417 kw/h) in unused spaces on 15

We are also engaged in cooperative transport and deliveries

different production plant sites throughout Japan.

Harmony with the environment

Company profile

Feature Story

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & compliance

Reducing our environmental footprint

Activities to reduce waste
In terms of waste reduction, the company-wide Committee on Waste
Reduction leads efforts to improve our rate of product commercialization
by reducing defects and increasing yield, and to reuse more material
cutoffs. Our waste treatment amount in 2020 was 5% lower than in 2019.
While our measured units of waste treated decreased, we were unable toreach our target. We are working toward reducing emissions by expanding
sales of the long cushion (see article at right) made from material cutoffs,
commercialization of products made from recycled materials, and othersuch efforts.

Activities to reduce the use of environmentallyhazardous substances
INOAC uses PRTR substances such as m-tolylene diisocyanate, a raw
material for polyurethane foam as well as xylene and toluene which are■ Waste treatment amount (t)
t

8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0

0.06
0.05
0.04
0.03
0.02
0.01
0.00

kg

300,000

With polyurethane in chip form, cushions exhibit less deformation over long-term
use, thus extending the life of the product. Products have longer replacement cycles
2016

2016

281,192

200,000

2017

2018

2019

2020 Year

2017

2018

2019

and produce less waste thanks to longer product life and the use of unneededmaterial remnants that had been treated as industrial waste.

2020 Year

213,638 229,332

247,807

Chips (after being crushed)

216,591

150,000
50,000to the previous year.

We are developing and manufacturing products with material remnants ofpolyurethane that we produce, crushed into chips to be used as filling for cushions.

250,000transferred of these substances, we have made progress in replacing

transfer amount as well as the output intensity of the substances compared

6,877

Development and manufacturing of the long cushion,a recycled product■ PRTR substance release and transfer amount (kg)

100,000

partially left over as foaming agent, and we were able to reduce release and

5,799

7,086

■ Measured units of waste treated (treated amount (t)/productionsum (million yen))
0.08
0.0715 0.0687 0.0712
0.07
0.0603 0.0658

used in coating processes. To reduce the amount handled, released, anddichloromethane and bis phthalate plasticizer (2-ethylhexyl) which is

5,129

7,478

0

2016

2017

2018

2019

2020 Year■ PRTR substance release and transfer amount intensity(release and transfer amount (kg))/production sum (million yen))
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0

3.307

2016

Finished product ()

2.425

2.383

2.275

2.175

2017

2018

2019

2020 Year* Business places from which environment data are collected on pages 15 and 16 are shown below.
◎ INOAC Corporation, Anjo Plant, Sakurai Plant, Kira Plant, Nanno Plant, Yana Plant, Ishimaki Plant, Ikeda Plant, Ikeda 2nd Plant, Ohno Plant, Jinno Plant, Head Office (Nagoya/Tokyo), Osaka Branch, Hanyu Plant, Jinno R&D Center◎ INOAC Housing & Construction Materials Co., Ltd./Ibigawa Plant, Kofu Plant ◎ Kyushu INOAC Co., Ltd./Yukuhashi Plant, Kikuchi Plant, Ukiha Plant, Kitakyushu Plant ◎ Techno Foam Japan Co., Ltd./Head Office, Saitama Plant◎ Kyushu Color Foam Co., Ltd. ◎ Higashi Nihon INOAC Co., Ltd.
14CSR REPORT 2021

Harmony with the environment

Company profile

Feature Story

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & complianceManaging information on chemical substances

Promoting IMDS, chemSHERPA and more

Establishment and implementation of green procurement criteria

INOAC registers information on chemicals and reports it to our customers through IMDS *1, particularly in the

We ascertain what chemical substances are regulated by laws, regulations, and by our customers, based on which

automotive field which is our main field of business. We have a management system to obtain the necessary

we create our green procurement criteria - a list of those chemical substances that we should work to reduce. We

information via our supply chain and to register the information into IMDS.

present these criteria to suppliers and use them to obtain information on chemical substances contained in raw
materials to be purchased. We are also consistently monitoring the latest regulatory developments, based on which■ Information collection through IMDS in INOAC – reporting process and chemical management system
Component supplier
Products

INOAC
Components list
drawings, etc.

Communication about chemical substance management

In-house database
Products

Material supplier

we revise these criteria once each year.

Component parts
Materials

IMDS data

Chemical
substancesAutomanufacturer,
etc.

Materials

The Global Quality Assurance Division is a company-wide organization for environmental stewardship, whichorganizes and leads meetings for the chemical substance management sections of each department once every
two months. They review the green procurement criteria, check the management system and establish or change
its operating rules, and exchange opinions concerning the latest trends in chemical regulations, such as the REACH

Chemical
substances

regulation and RoHS Directive. They also periodically audit the management system in each department in order tomaintain and improve management systems that are appropriate and reliable.

We also collect information and report it to our clients using the chemSHERPA format, which is widely used in*2

the industrial world, especially the electrical machinery industry.

gular meetings
Hold re*1 IMDS (International Material Data System): A database for transmitting and obtaining information on materials and chemicals
over the Internet for the automotive industry, which was originally developed to comply with the EU ELV*2 chemSHERPA: A unified format to transmit information on chemicals contained in products in the supply chain, which the
Ministry of Economy, Trade and Industry took the initiative in developing

Procurement
sections
Automotive parts
sections
Global Quality
Assurance
Division

Creating an in-house database

Polyurethane
products sections
Rubber products
sections
Plastic products
sections

The Automotive Division is creating an in-house database through which information on chemical substances
contained in parts and materials purchased from suppliers is identified based on information about chemical
substances, and centrally managed. This has allowed us to be certain of our compliance with laws and regulations
on chemical substances and client requirements which increase each year, while also helping to improve theefficiency and the reporting accuracy of information we register in IMDS and when examining the chemical
substances contained in our products.

15

CSR REPORT 2021

s
Impl
ction
ement
audits at each of the se

Maintain and improve
management systems

Improving value

Company profile

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Harmony with the environment

Improving value

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Producing an employeefriendly workplace

Supply chain management

Governance & compliance

Quality improvement efforts

Transparency of quality is necessary in global competition
The INOAC Group has implemented a comprehensive management system based on ISO 9001 to guarantee quality and provide
products and services that our customers can be satisfied with and use safely with confidence. We are also engaged in efforts toimprove quality by collaborating with our customers. In recent years, quality fraud has become a large social issue and trust in

Quality that can satisfy all customers

Basic policy

Japanese manufacturing is wavering. Against this backdrop, the global trend is moving toward enforcing transparency in productdevelopment and manufacturing processes, as well as clarification of responsibility.

 Thorough quality compliance More robust quality risk management for new andcritical quality products

Examples of initiatives
1. Thorough quality compliance

2. More robust quality risk management for new and critical quality products(1) Observing official accreditations / certifications
Products of the INOAC Group which have received
official accreditations or certifications are registeredin the Global Quality Assurance Division, and weverify whether there are any discrepancies between
the products and the examination criteria. We also
periodically inspect whether there are any
discrepancies between the logged information andthe products themselves.

(1) Product component audit for critical quality
We conduct audits and guidance at our production
sites in Japan and abroad to improve quality andprevent any serious quality issues in advance that
could threaten our company’s existence throughthe loss of social trust.

Certified flame retardant products(JFRA - Japan Fire Retardant Association)(2) Quality audit of new products
We conduct audits of products created using newtechnologies, new materials, new processes or for
new usage applications, with the goal of preventing
serious quality issues in advance.
Audit members
President, Global Technical Division, Global Quality
Assurance Division, persons in charge of producttechnology, quality assurance, and sales(3) Managing new materials changes
Issues resulting from materials changes can lead toserious quality issues, so we manage materials
changes in order to prevent these issues before
they occur.
Materials changes are conducted through aframework in which the Global Technical Divisionand the persons in charge of technology andquality assurance at the departments in chargedeliberate over the changes, and approval is givenby the Global Quality Assurance Division.

Audit areas
Material quality, product characteristics, productperformance, structure, exterior, comparison with similar
products, product safety, production safety, quality risks floor cushions

3. QC and improvement activities
QC (quality control) group activities for small groups to voluntarily gather on the topic of quality improvement have been taking place at INOAC since around 1965. These activities have since expanded worldwide. Starting
in1985, INOAC has held the World QC & Improvement Competition on a global scale in order to share quality control activities taking place throughout the group of companies.
The competition was canceled in 2020 due to concerns over the outbreak of COVID-19. Some blocks and locations have kept these group activities going by holding qualification rounds while taking precautions against the
spread of infections.

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CSR REPORT 2021

Communication with society

Company profile

Feature Story

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & complianceContributing to society and communities
The INOAC Group takes various opportunities to engage in activities that build trust with society and communities.
Considering it our mission as a company to support the growth of children who are our future, we are engaged in educational and developmental activities in Japan and around the world.

Japan■ Donating polyurethane masks and vaccine transportation boxes■ Disaster response agreement■ Idea contest for elementary school students

In order to help stop the spread of COVID-19, we are actively donating

The Saitama Plant of Techno Foam Japan Co., Ltd. has been providing

For the healthy mental and physical growth of children who are our

products made with INOAC technologies. In May 2020, we donated 6,000

interlocking foam mats to the city hall of Hanyu in Saitama Prefecture

future, we at the INOAC Corporation aim to engage in activities thatpolyurethane masks to the city of Anjo in Aichi Prefecture. Additionally,

since April 2019. In August 2020, the plant and the city also concluded ancontribute to communities based on the three themes of “Nurturing ideas

the Logistics Medical Division donated an i-Medisys set-temperature

Agreement to Supply Emergency Daily Necessities in Times of Disaster.

for making things,” “Nurturing body and mind,” and “Nurturing waste-freevaccine transport system to the city of Kaizu in Gifu Prefecture in April
2021.

mentalities.” As part of these efforts, we organized the first ever My Free

facilitate smooth partitioning of emergency shelters to prevent the

Idea Contest, for which elementary school students all over Japan sent in

We are also making donations to local government offices of otherspread of COVID-19, and have cushioning properties that can help totheir wonderful ideas.

plants and business locations. These activities to provide support toalleviate physical strain. Currently, Hanyu uses these mats in the Children’scommunities will continue.

Square at their Civic Plaza facility.

Donation presentation event in the city of Kaizu

17

Interlocking foam mats offer versatile usage options, since they

CSR REPORT 2021

We aim to continue holding idea contests that can serve as
springboards to healthy mental and physical growth for children.

Signing ceremony in Hanyu

Communication with society

Company profile

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Harmony with the environment

Improving value

Communication with society

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Governance & complianceContributing to society and communities

Overseas■ Charity activities for orphanages■ Donating mattresses to schools■ Donating mattresses to field hospitals

INOAC LIVING VIETNAM CO., LTD. (Vietnam)

INOAC POLYMER LANKA（PVT）LTD.

INOAC (THAILAND) CO., LTD.

There are approximately 1.4 million children living in poverty in Vietnam,

We donate bed mattresses produced in-house to local junior and senior

In response to the COVID-19 outbreak, we are donating in-house

157,000 of whom are orphans living in many different facilities

high schools.

produced mattresses to field hospitals.

throughout the country.
We hold regular charity events with the hope of providing spiritualand material support to the children in these facilities.

In order to support the health and safety of students and faculty of the

In Thailand, Samut Sakhon Province was closed off at the beginning ofschools, we are helping to make improvements to campus first aid rooms

2021, and field hospitals were concurrently established. We supported

and break rooms. Through these donations we are also assisting students’

healthcare workers there by donating 600 mattresses to help to make up

sports activities, and we believe this is helping to develop better leaders.

for shortages of mattress for patients.
The INOAC Group is providing many types of support in each country
during the COVID-19 pandemic.

18

CSR REPORT 2021

Producing an employee-friendly workplace

Company profile

Feature Story

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & compliance

Improving in-house systems

Diversity efforts

Promoting work-life balance■ Promoting female employees

We are actively working to support balance between

INOAC enables female employees to demonstrate their skills and capabilities, actively seeking out roles for them andwork and family life, to have an employee-friendly

creating environments where they can contribute to the company. Two female employees were promoted toworkplace and promote the advancement of women.

manager roles in FY 2020, raising the ratio of female workers who comprise our management roles to 4%.

According to our regulations regarding childcare leave,■ Work related to the Act on the Promotion of Female Participation and Career Advancementin the Workplace

two years old. Special (paid) leave is also available to

We promote women's success at work with the three goals below. They are designed to encourage female
employees to demonstrate their potential and develop their careers in a variety of departments over a period of five
years from April 1, 2021 to March 31, 2026.

employees are able to take leave until their children areattend to sick or injured children: five days are provided
to employees with one child and ten days toemployees with two or more children. In addition, weoffer a system of reduced working hours, which can beused for up to three years (available until the childfinishes third grade in elementary school). We also

Goalsinstitute five days of special paid leave when a spouse(1) Raise the ratio of females among all INOAC workers to 20% or more.
(2) Raise the ratio of female employees in sales roles to 15% and in technical roles to 7%.
(3) Make the usage rate of managers' annual paid vacation equal to that of general employees(54.8%).

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

■ Support systems to balance workand 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)
Regulations regarding childcare leave amended(leave period extension) (2005)
System of reduced work hours for childcare (2008)
Family Care Leave (2010)
Regulations regarding telecommuting (2020)

Harassment prevention
INOAC implements the following measures against harassment in the company.

■ Employing persons with disabilities■ Users of the continued employment system

In order to realize a society where everyone can expand

Since January 2015, we have been actively engaged intheir potential, we actively hire persons with disabilities.

creating an environment in which senior citizens canDoing so, we found that employees become more

effectively put their career skills to use. We are increasing

considerate toward others and that it creates

wages for employees who continue to work with us,

heightened awareness.

thereby implementing a system that makes it
worthwhile to rise to positions of responsibility.

19

CSR REPORT 2021

(1) Declaration and publication of company policy
INOAC declares and discloses its company policy concerning harassment, including sexual and power
harassment.
(2) Establishment of consultation desks
Consultation desks to address harassment in the workplace are established in workplaces across Japan(for each area). We also have dedicated consultation desks for women, and labor union consultation
desks.
(3) In-house fact-finding surveys
We administer the Power Harassment Questionnaire annually for all employees, gain an understandingof the actual conditions, and take action in response.
(4) Harassment prevention training
All managers at INOAC are required to attend Harassment Workshops.

Producing an employee-friendly workplace

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Harmony with the environment

Improving value

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Producing an employeefriendly workplace

Supply chain management

Governance & compliance

Human resource development

Global human resource development

Personal development

The INOAC Group began full-scale overseas expansion in the late 1950s, and now operates factories and offices globally in more than 50 locations. In order to develop humancapital that can drive progress in globalization, INOAC stresses its Global HR Development activities - with a particular focus on younger employees.

■ Pre-overseas work training■ Overseas trainee system

INOAC provides five total days of training by instructors from various sections of thecompany as well as outside instructors for employees who are candidates foroverseas posts, to give them the skills and mindsets they will need to work outside ofJapan. Every year we gradually make improvements to the training content. In 2020,
this included content that highlighted the fulfillment of working overseas while
seeking to preemptively alleviate anxieties about living abroad, including various
online round table meetings with current expatriate employees and specificexamples shared by in-house instructors who have worked overseas. Local staff
members at overseas locations also appeared as supporters and role played meetings
in English, which intimidated many of the trainees. However, some commented thatat the end of the day, it had helped them realize the need for English language skills
as well as their own lack of communication skills with foreigners in business settings,
and they became determined to turn the experience into something positive. We
also conduct training for risk management in situations such as terrorist incidents,
kidnappings, and property theft.
While there are certainly many things that those on their first assignments will
simply have to actually go abroad to understand, we are packing as much specificcontent as possible into the training.

In 2019 we picked out the inaugural batch of trainees and sent three young
employees on year-long training assignments to the US and China.
Responses from the local companies where they worked were also
overwhelmingly positive, and just as we were preparing for the second batch oftrainees, we had to suspend the program when COVID-19 pandemic struck in 2020.
However, we finalized the first overseas assignments again in 2021 after a year off.
Since this is designated to be training, their objectives differ from those of expatriate
staff. The chief objective of the trainees is to gain various experiences and take on
various challenges in that location. Based on support from local staff, they are
directed to think, act, and overcome challenges on their own for a year. Aftercompletion, trainees give results presentations both locally and back in Japan.

■ Welcoming international employees
Current restrictions on international travel have made it difficult to visit Japan fromoverseas. However, we have still held the same Global Meetings that have been heldeach year until now, gathering managers and director-level personnel from locationsin other countries together with main team members from INOAC departments toshare Japan’s new products, new technologies, and customer trends, and trade ideas
about how to deploy them internationally. Sharing the circumstances in each country
between local staff members in the different countries has also helped to establish
horizontal ties. These meetings were originally centered on the sales sections of major
business units, but since several years ago we have expanded the activity to also
include other sections such as technology, IT, and accounting. When the COVID-19
pandemic is over, we will once again invite large numbers of international personnel
to Japan and expand networking within our company.

■ Distance learning program
The Distance Learning Program and Qualification Acquisition
Support Program are available for employees who are seeking
personal development.
In our Distance Learning Program, we make over 100 types of
popular courses available each year and return 50% of course fees
to learners who complete the courses. Additionally, our
Qualification Acquisition Support Program provides assistancesuch as course fees and incentives for acquiring officiallyrecognized qualifications, based on company rules.

Report from a First Batch Trainee

Yuki Narita(Production Engineering Section, Technical Department,
Global Automotive-related Products Division)

My training was in North America, starting inNovember 2019. In terms of work-related tasks, I
learned how important it is to take the initiative
to exercise your capabilities and produce results.
Particularly in the US, I learned that doing so isthe first step in earning the trust of the local staff. The operational expertise I
had gained in Japan was extremely helpful in accomplishing this. Since mylanguage skills were a daily source of frustration, I also studied English on myown every day while I was there. During vacations I was also able to enjoy lotsof different experiences in North America such as long-distance road trips
around the continent, and visiting a number of different apple orchards. In
Japan I will continue working hard so that I can display my capabilities
overseas again sometime in the future.

■ English language learning
In addition to lessons for young employees to learn English
conversation that they can utilize in business scenarios, this fiscal
year we also introduced a new, more practical online English
learning platform for all employees to give presentations and havediscussions in English. The number of course takers has more thantripled. We also held online social events to boost employee
motivation and shared tricks for making a habit out of English
learning.
We will continue working to create mechanisms that makeeven more
employees
say, “I want tolearn English!”

Online English learning

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Producing an employee-friendly workplace

Company profile

Feature Story

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & compliance

Safety and health / Disaster prevention

Principles and basic policy for safety(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 action of each employee.
Based on the safety principles above, safety is prioritized 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
have taught us to be of critical importance. We strive to improve thesafety, health and disaster prevention levels at all of our locations byconducting repeated training and improving any weaknesses wefind in our safety, health and disaster prevention assessments.

All INOAC Safety and Health Committee
meetings
The following safety activities are led by top management and attended
by all members of the company.
◎ Central Safety and Health Committee meeting: Held four times per
year◎ Field inspection by officers: Held twice per year
◎ Safety Practitioners Conference: Held six times per year
◎ Safety and Health Committee meeting at each location: Heldmonthly
Through these activities, INOAC enhances company-wideawareness of safety, health, disaster prevention. We hold thesemeetings on safety tobuild organizational
culture and preventthe reoccurrence ofdisasters.

Field safety inspection by top management

Safety Practitioners Conference
1. Summary from the FY 2020 Conference(1) Reports on safety, health and disaster prevention activities(2) Statistics and analysis of disasters in the INOAC Group(3) Notices and changes in the Industrial Safety and Health Act
2. Education and awareness raising to prevent occupational accidents(1) Efforts to prevent occupational accidents
Locations far away participate online
3. Policy for FY 2021
(1) Explanation on safety, health anddisaster prevention activities
in FY 2021
(2) Proposals from the labor union

Safety Dojo disaster prevention activities
to develop safety-conscious workers
The Safety Dojo lets employees experience potential work hazards insafe settings using 15 simulators that enable the employees to see, hearand feel the hazards. The experience helps build workplaces capable ofachieving the zero-disaster standard by making employees moresensitive to potential hazards, training their ability to predict them, andbuilding habits in safe work
practices.
In 2020 we introduced a virtual
reality (VR) system and brought VR
equipment to each location for
on-site interactive safety training.

4. Organizing safety presentations
by outside instructors
Safety conference21

CSR REPORT 2021

Safety Dojo (1,000 employees
have participated)

Promoting employee healthManagers are improving their skills and knowledge so that they can lead by example.

◎ Establishing mental health and harassment consultation desks◎ Establishing outdoor smoking space to ensure separation of smoking areas◎ Taking environmental measures to reduce road surface
temperature and use the Thermax ceiling cover method tolower temperature inside plants◎ Organizing learning sessions and trainings by industrial
physicians and the health insurance association◎ Taking preventive measures against heatstroke
Heat insulating pavement (reducing◎ Measures to prevent the spread of the novel coronavirus road surface temperature byreflecting infrared rays)• Implemented a body temperature checking system at
entrances• Arranged partitions inmeeting rooms anddiscussion areas• Placed hand sanitizer inpertinent areas
Body temperature checking
Partitions in discussion areas
system at entrances

Disaster prevention activities
We take action according to our Crisis Management Regulations to minimize damage by
natural and other disasters, execute accurate first responses, and ensure early recovery.
1. 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
2. Measures against fires, storms, and floods◎ Prevention of fires and explosions in manufacturing facilities◎ Preparedness and systems for dealing with storm
and flood damage◎ Establishment of a weather information
distribution system
3. Disaster prevention education◎ Utilizing the Disaster Prevention Training Centerand performing disaster prevention training atworksites
Disaster Prevention Training CenterSupply chain management

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Supply chain management

Basic Procurement Policy

Optimal procurement at our bases across the globe
We contribute to the countries where our bases are located by procuring local raw materials and components. At the same time, we also aim to build(1) Promotion of global procurement activities
We strive to enhance our global procurement utilizing ourdomestic and overseas locations and strengthen relationships
with our valued suppliers.

(2) Compliance with laws, social codes and internal
regulations
We comply with laws, social codes and internal regulations, andpromote healthy and open procurement activities.

(3) Promotion of fair, just and sincere procurement
activities

good relations with our valued suppliers taking long-term business relationships and the optimal quality and cost into consideration. Furthermore, we
conduct procurement with a higher level of strategy to accommodate our global production operations.

Strengthening partnerships with our valued suppliers
Together with approximately 80 valued suppliers we formed the INOAC Cooperative
Assembly, where we engage in various activities. We invite representative speakers from ourvalued suppliers to give presentations for our entire group of companies about their activities
to raise awareness about compliance and risk management at speaking engagements, andabout the work that goes on in their subcommittees. In this way, we strive to mutually raise
the levels of all participating companies.

We provide our valued suppliers with fair and just competitive
opportunities and act in good faith in our procurement
activities.

(4) Consideration for the environment and humanrights in procurement
We conduct procurement with consideration for the earth’s
environment in accordance with INOAC’s environmental
policies. Our procurement activities seek to achieve carbon
neutrality and a carbon-free society above all. In addition, wegive due consideration when dealing with the procurement of
raw materials that may cause human rights issues or social
problems such as the use of conflict minerals.

(5) Building partnerships based on trust with ourvalued suppliers
We construct firm, trusting relationships with our valued
suppliers and cooperate with them to maintain and improveeach other’s technological capability and quality.

22

CSR REPORT 2021

Green procurement

Conflict minerals

In order to keep up with environmental regulations that become

The Democratic Republic of Congo has one of the world’s richest total

stricter every year, we revise the INOAC Green Procurement Criteria on

deposits of mineral resources. However, it is also a region—along witha yearly basis and engage in procurement activities that areneighboring countries—embroiled in ceaseless warfare. Minerals

environmentally conscious. In addition, we are also working to reduce

produced in this region become a source of funding for organizations

our environmental impact, such as by looking for ways to enhance

involved in human rights violations, environmental destruction,loading efficiency as a means to improve procurement logistics.

corruption and illegal activities. Our policy is to not use such conflictminerals, and we are working with each of our business partners to

Achieve carbon neutrality and a carbon-free society
As measures to combat global warming which grows worse each year,
we engage in procurement activities seek to achieve carbon neutrality
and a carbon-free society, and strive to reduce our CO2 emissions.

disclose relevant information.

Governance & compliance

Company profile

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Governance & compliance

GovernanceCorporate governance structure
Our basic view on corporate governance■ Board of Directors

INOAC considers the improvement of corporate governance to be an important managementtask in order to raise the group’s performance, value and social credibility.

Comprised of 10 members, the Board of Directors decides important issues in INOAC’s business. Each board member
reports the execution, financial and performance statuses of his/her division, based on which the Board supervises andcontrols the business execution of the company.

■ Executive officer system
In order to separate supervisory and executional responsibilities, INOAC has introduced an executive officer system.
Each executive officer, endowed with his/her own authority from the Board, acts as the head of the department, groupcompany or major functional organization to speed up decision-making, optimize business operations and handle
critical business execution.

■ Corporate governance structure (organizational structure)

Appointment and dismissal

Internal audit

President

Supervise

Monitor
CCO

Compliance Officeand Compliance
Officers

CSR REPORT 2021

Executive
Management
Committee
Associated/affiliatedgroupcompanies

Businessunits

CrisisManagement
Committee

Accounting audit
Accounting auditor

23

The Board of Auditors is composed of three company auditors including two external auditors. The company auditors
attend important meetings, such as board meetings, and audit the execution of duties by the directors by inquiring
about the status of their business operations.

Internal Control System
Cooperation

Business Auditors’
OfficeBoard of Directors

Shareholders’meeting■ Board of Auditors

Audit

Cooperation
Appointment and dismissal

Appointment and dismissal

Board of Auditors (including outside company auditors)

Various measures are implemented to ensure that we comply with applicable laws as well as the company’s articles ofincorporation in our business execution.

■ Compliance
All employees are educated on our system for promoting compliance and our Corporate Code of Conduct.
■ Information management
Documents are managed by the Document Control Procedure that defines the responsible department/section andstorage period for each document.
■ Control structure as a corporate group
Governance rules for associated companies are established for associated and affiliated companies. Rules for business
operations are also clarified along with audits conducted by company auditors when necessary.
■ Risk management
The Executive Management Committee manages each risk and Crisis Management Committee meetings are held
when necessary. The Negative Information Hotline is always ready to quickly obtain information about risk and provide
a structured response.

Governance & compliance

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Governance & compliance

Compliance

Compliance education
Basic views on compliance
INOAC believes that the compliance requirement goesbeyond simply following the applicable laws and requires
each employee to act with a high level of ethics. In orderfor INOAC to satisfy its corporate responsibilities andexpectations from customers, it is not enough to simply
follow the applicable laws. Employees must also recognize
their social responsibilities as part of the corporation.

Compliance and Ethics Program

Internal reporting system

In addition to establishing internal regulations, an educational program

In order to thoroughly enforce compliance, the company must be ready to

aimed to raise awareness on compliance is provided to sales

act immediately in the event of any compliance-related violation. To thisrepresentatives, staff in charge of procurement, new employees andend, INOAC has established the Help Line through which anyone may

mid-career hires at all INOAC business locations. The educational program

consult directly with both the Legal Affairs Department and an externallooks at examples of compliance violations that have occurred at otherlaw firm about their concerns. Internal Reporting and Whistleblower

companies and conducts case studies on how such issues could occur inProtection Regulations have also separately been established to protect

one’s own workplace. The program also holds discussions on questions

whistleblowers from any form of retaliation.

about matters requiring clarification which arise in day-to-day work
operations. Through these efforts, we are working to raise each individual’sawareness of compliance.

Internal audits

Negative Information Hotline

The Compliance and Ethics Program has been implemented, and a

Field audits are conducted at each section and domestic group company

The Negative Information Hotline (consultation line) has been establishedCompliance Office has been established within the Tokyo Head Office. We

covering aspects such as compliance, risk management and observance offor employees to report not only compliance issues, but also any issues

have appointed a Chief Compliance Officer (CCO) to lead the Compliancelaws. Areas that are deemed in need of improvement by the results of field

regarding product quality, safety, the environment, sales, procurement andOffice and Compliance Officers for each jurisdiction and business location

audits are tracked regularly to raise the governance standards of the INOAC

more. When such issues arise, the company will be able to respondin Japan and overseas. In addition to establishing internal regulations, weGroup as a whole.

immediately and take measures to keep problems from spreading.

are also creating systems to raise employee awareness toward compliance.

Quality-related issues
Global Quality Assurance Division

Negative
Information
HotlineSafety and environmental issues
Safety Environment Management Section

Information on compliance
Legal Affairs Department

Information on sales, procurement, etc.
Corporate Planning Div.

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CSR REPORT 2021

Company profile

Feature Story

Harmony with the environment

Improving value

Communication with society

Applicability of report
Reporting period

This report was prepared based on the business activities of INOAC Corporation during FY 2020 (January 1 - December 31, 2020).
* Also includes some information from FY 2019 and before, and from FY 2021.

Applicable scope

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

25

Year & month issued

November 2021

Guidelines for reference◎ Environmental Reporting Guidelines FY 2018 Edition ◎ ISO26000

CSR REPORT 2021

Producing an employeefriendly workplace

Supply chain management

Governance & complianceInquiries

INOAC CORPORATIONPR Section, Corporate Planning Department
4F Osaki West-city Bldg., 2-9-3 Osaki, Shinagawa-ku, Tokyo 141-0032
Phone: 03-6680-8168 E-Mail: pr@inoac.co.jp