Suminoe Textile GroupC SR Repor t
2020
For inquiries about this Report:
CSR Promotion Department
Suminoe Textile Co., Ltd.
11-20, Minami-Semba 3-Chome, Chuo-ku, Osaka 542-8504 Japan
TEL: 06-6251-6817 FAX: 06-6251-6806
E-Mail: csr@sin.suminoe.co.jp
URL: https://suminoe.co.jp/en/Editorial Policy and Contents

Offering Amenity Spaces and Enriched Lifestyles

Contents

For over 137 years since its inception, the Suminoe Textile Group has always endeavored to produce even better products in
response to social needs that it has identified.
As a textile manufacturer, we will continue to embrace challenges to create state-of-the-art living spaces.

Editorial Policy and Contents
Top Message
Businesses and Global Operation Sites of the Suminoe
Textile Group
Value Creation Process

Editorial Policy
This CSR Report is published with the aim of helping all stakeholders deepen their comprehensive understanding of the Suminoe Textile Groupby reporting on its management strategies, businesses and CSR activities.

3. Global Expansion and Introduction of an Overseas Affiliate

1

Referenced Guidelines

Fiscal year 2019 (From June 2019 to May 2020)(Some activities undertaken outside the above period are included.)

ISO26000 Guidance on Social Responsibility
Guidance for Collaborative Value Creation

Scope of the Report

Date of Publication

Suminoe Textile Co., Ltd. and its consolidated subsidiaries in Japanand overseas.
However, the scope varies according to the items reported.

December 2020
(The next report will be published in December 2021.)

Suminoe Textile Group CSR Report 2020

Initiatives for CSR
Corporate Philosophy and CSR System of the Suminoe Textile
Group

25

7

Fiscal 2019 Results of CSR Activities

27

12
13

Businesses and Strategies of the Suminoe Textile Group
Suminoe Textile Group’s Core Technologies and Expanding Product,
Business and Market Fields
15
Overview and Growth Strategies of Each Business Segment

Foundation That Supports Growth5

Feature1. Through the Experience of the COVID 19 Pandemic
9
2. Aiming to Contribute to Society, Capitalizing on our Technologies,
Products and Services

Period Covered

1
3

17

Enhancing Corporate GovernanceCorporate governance29

Ensuring Compliance

31

Risk Management

33

Initiatives for Society
Growth and Success of Employees

35

Communication with Local Communities(Social Contribution Activities)

39

Initiatives for the Environment
Environmental Management—Under the Slogan of KKR+A

40

Fifth Medium-Term Activity Goals—Eco Challenge 2020—

42

Eco Challenge 2020 (Fiscal 2019 Results)

43

Column / Editorial Postscript

46

Suminoe Textile Group CSR Report 20202

Top Message

Expanding Our Business into New Fields
While Implementing ESG Management

Introduction
We would like to offer our deepest condolences to those whose
lives were taken away by symptoms caused by the novel
coronavirus (COVID-19) and express our sincerest sympathies tothose suffering from COVID-19, as well as their families and loved
ones.
In the present fiscal year ending in May 2021, the businessenvironment surrounding the Suminoe Textile Group has beenharsh under the impact of the COVID-19 pandemic. Placing thehighest priority on taking thorough measures to prevent the
spread of COVID-19, we will contribute to the realization of asustainable society where people can live with peace of mind
through the creation of better products based on the Company’s
development philosophy.

E (Environment): Initiatives to Reduce
Environmental Impact
Under its fundamental development philosophy “KKR+A (Kenko[Health], Kankyo [Environment], Recycle and Amenity),” the Grouphas been working to reduce environmental impact of its products
in order to resolve worsening environmental problems, thereby
fulfilling its social responsibility as a manufacturer.
ECOS® Recycled Carpet Tiles Produced Using Horizontal
Recycling Technology
In 2011, Suminoe Textile released the ECOS® series of recycled
carpet tiles produced using horizontal recycling, by establishing
the framework for recycling used carpet tiles in collaboration with
Refinverse, Inc., a manufacturer having a significant advantage inindustrial waste recycling. ECOS® has realized a “closed-loop
recycling” system, which repeats the cycle of production, use, andrecycling between the same products by using waste carpet tiles
as recycled materials for the backing material of new products.

3

Suminoe Textile Group CSR Report 2020

Even now, the recycled material ratio of ECOS® stands at theindustry’s highest level. In addition, ECOS® uses only waste carpet
tiles as recycled raw materials. By clearly identifying the origin of
its raw materials, we ensure the safety of this product series.
We are committed to “responsible production” as amanufacturer through the effective use of limited resources andin pursuit of even more sophisticated technologies of recycling
models.
Transition to Solution-Dyeing
The Group is changing in stages the dyeing method for yarn used
for our products, from piece-dyeing, where white yarn is dyed, tosolution-dyeing, where yarn is colored with pigments during thespinning process. Since piece-dyeing requires large amounts ofwater and electricity as well as dyeing effluent treatment, thismethod tends to have greater environmental impact. On theother hand, without needing dyeing effluent treatment,
solution-dyeing can reduce CO2 emissions during production ascompared with piece-dyeing. Moreover, solution-dyeing carries
other advantages over piece-dying. For example, solution-dyeing
is expected to produce high-quality yarn having favorable
properties, such as excellent durability and fewer variations incolor. Also, solution-dyed yarn can be manufactured at lower
costs. We will continue to strive for environmental impact
reduction and quality improvement.

Social (S): Initiatives to Resolve Social Issues
Since its founding, the Suminoe Textile Group has continued todevelop by implementing business operations in response tosocial needs.
Development of Our Proprietary Deodorant Treatment
Technology
In the 1990s, when sick building syndrome became a matter ofconcern, we addressed the problem through the development ofour proprietary deodorant treatment technology for absorbing
and decomposing odor-causing substances. Subsequently, we
have worked to enhance such technology to satisfy the needs ofthe times, such as removal of smells in nursing-care facilities andliving environments.
Promoting Anti-Virus Products in Various Business Segments
Our textile-processing technology, originally starting withdeodorant treatment, has evolved into トリプルフレッシュ®デオ(TRIPLE FRESH DEO), which features not only a deodorantfunction but also the multiple functions of antibacterial, anti-virus
and antiallergen activities. In the interior fittings business, theGroup has marketed products treated with anti-virus processing
technology for about ten years. Using the processing technologythat we have cultivated so far, we will henceforth promote thedevelopment of anti-virus products also in the automotive
textiles, traffic facilities and functional materials businesses.

Governance (G): Initiatives for GovernanceRestructuring of our Core Operation System
Since 2017, Group-wide efforts have been made for the
restructuring of our core operation system, including inventory
management and sales order management systems, in order tofurther improve work efficiency. The core operation system isbeing developed by each division, and the restructured system
will come into full service across the Group by around 2022.
Risk Diversification through Globalization
Currently, the Suminoe Textile Group is operating its businesses at
14 manufacturing and sales sites in seven overseas countries,
including the United States. In August 2019, we established
Suminoe Textile Vietnam Co., Ltd. as a new manufacturing andsales site for electric carpets and other textile-based heating

appliances. While sharpening our competitive edge by promoting
globalization, we aim to diversify risks in the supply chain.

To a New Business Segment
In September 2020, CPO Co., Ltd. joined our Group. CPO is acompany involved in designing, constructing and construction
management of apparel shops, beauty salons, general stores andvarious other retail stores. In our interior fittings business, we havesold interior fittings, such as carpets, curtains, and wallpaper, andhave been highly regarded for our excellent design capabilities
and functional processing technology for materials. However,with the addition of this company with a deep knowledge ofstore design and outstanding know-how of store construction,
we are now able to design the entire interior space and embody
customer needs at a higher level. In the future, we will expand ourbusiness segments from the manufacture and sales of interior
fittings to space designing and to the store field, in addition to
products geared for hotels, offices, medical, welfare andeducational facilities, and general households, all of which havebeen our conventional business targets.
The recent spread of the novel coronavirus (COVID-19) has
forced the entire society to undergo significant changes. The
Company has established a work-from-home system and otherschemes to improve the working environment for employees
and strengthened online sales of products and non-face-to-faceselling. In so doing, we will overcome the harsh economic
situations. Meanwhile, by vigorously conducting initiatives forbusiness expansion, we will take on bold challenges to explore
new business categories.
December 2020

Suminoe Textile Co., Ltd.
Chairman and President

Suminoe Textile Group CSR Report 20204

Businesses and Global Operation Sites of the Suminoe Textile Group

Global Operations of the Suminoe Textile GroupThe greatest strength of the Suminoe Textile Group lies in maximizing the capabilities of all Group companies
through close cooperation between experts in research and technological development, production and sales.
Interior fittingsbusiness

Automotive textiles
business

Traffic facilities
business

Functional materials
business

Arts andcrafts textiles

China

India

1

2

SPM Automotive Textile
Co., Ltd. Guangzhou

3

Suzhou Suminoe Koide
Automotive Accessories
Co., Ltd. (SSK) Suzhou

Number of employees(all Group companies)

2,822

Suzhou Suminoe Textiles
Co., Ltd.

5

Suminoe Teijin Techno Krishna
India Pvt. Ltd.

Suminoe Textile Shanghai
Co., Ltd. (STS) Shanghai

Number ofGroup companies

employees

26

sites in

5

8

14

Suminoe Textile de Mexico,
S.A. de C.V.

13

Offices/Factories of Suminoe Textile Co., Ltd.

Major Group companies in Japan (head offices)

1 Head Office (Osaka City)■❶ SUMINOE Co., Ltd. (Osaka City)

3 Nara Factory (Ikoma-gun, Nara Prefecture)■countries

Planning and sales of interior products, mainly
wallpapers

5 Kyoto Traditional Art and Craft Factory (Kyoto City)■

8 West Tokyo Sales Office (Isehara City, Kanagawa Prefecture)■
9 Nagoya Sales Office (Nagoya City, Aichi Prefecture)■❹ Suminoe Works Co., Ltd. (Tokyo)

Indonesia

❾
●

11

12

Testing and inspection services
Osaka Laboratory (Matsubara City, Osaka
Prefecture)
Nara Laboratory (Ikoma-gun, Nara Prefecture)

❽ 4
7

❷❹ 2

13

6

7

Suminoe Textile Vietnam
Co., Ltd.

9

T.C.H. Suminoe Co., Ltd.

10

10

PT. Sinar Suminoe Indonesia

Changes in the number of employees

Name of Company Suminoe Textile Co., Ltd.

(Persons)
3,000

11-20, Minami-Semba 3-Chome, Chuo-ku,
Osaka 542-8504, Japan
1883

2,000

Incorporated

December 25, 1913
Suminoe Textile Joint-Stock Company

1,500

December 26, 1930
Suminoe Textile Co., Ltd.

Capital9,554,000,000 yen

Number of
Employees

267 (Consolidated group companies: 2,822 employees)

Suminoe Textile Group CSR Report 2020

1,338

3

9

8

2,850

2,899

Functional materials
business

2,822

3,928

1,324

1,346

Others

207
0.2%

Asia

15,339
16.8%

1,492

1,526

1,553

Overseas

2017/5Japan⓭ INTEC CO., LTD. (Osaka City)

2018/5

2019/5

Others289…Net sales…Operating income

0.3%

97,872
2,247

2018/5

By region

Net sales

1,560

2020/5

Consolidated numerical results
98,617
3,118(Unit: Million of yen)

91,512
1,557

2019/52020/5 (FY)2018/5

2019/52020/5ResultResultResult97,8722,247
2,358

98,617
3,118
2,956

3.2%

1.4%

91,512
1,557
1,323
0.5%

Consolidated numerical results

Operating income0
2016/5(Unit: Million of yen)

1,262

1,000
1,499

(Tamba City, Hyogo Prefecture)
Sewing and processing of fabric products

Wholesales of traffic facilities textiles

By businesssegment

500⓬ Sewing Hyogo Co., Ltd.

❼ Marunaka Souei Co., Ltd. (Osaka City)

Net sales breakdown (fiscal year ended May 31, 2020)

4.3%
1,287

❸
❺
❽

(Osaka City)
Production and sales of automotive textiles,
mainly seat covering materials

Development, design and sales of test equipment
and measuring instruments

2,500FoundedOrganizational
Change

2,830

2,786

1

Dyeing and finishing of automotive seat covering
materials and interior fabrics
Head Office (Ichinomiya City, Aichi Prefecture)
Ishikawa Factory (Nomi City, Ishikawa Prefecture)

PT. Suminoe Surya Techno

Corporate Summary (as of May 31, 2020)
Head Office

5

Suminoe Koide (Thailand)Co., Ltd.

8⓫ Owari Seisen Co., Ltd.

❻ Suminoe Teijin Techno Co., Ltd.

❺
❶
❻
❼

Production and sales of automotive seat covering
materials, chair upholstery fabrics, and clothing
textiles❺ Kansai Laboratory Co., Ltd.

5

11
●
10
●

❿ Teijin Tecloth Ltd. (Inazawa City, Aichi Prefecture)

Installation of interior products

10 Hiroshima Sales Office (Hiroshima City)■

Thailand(Kyotango City, Kyoto Prefecture)
Production and sales of plush hand-woven curtains,hand-woven carpets and hooked rugs, and otherrugs(Ikoma-gun, Nara Prefecture)
Product storage, handling, processing, anddelivery

7 East Tokyo Sales Office (Wako City, Saitama Prefecture)■11●❾ Tango Textile Co., Ltd.

❸ Suminoe Logistics Co., Ltd.

6 Sapporo Sales Office (Sapporo City, Hokkaido Prefecture)■(Fukuoka City)

Production and processing of carpets, continuous
fiber spinning (including recycling), and production
and sales of needle punch carpets
Shiga Factory (Koka City, Shiga Prefecture)
Nara Factory (Ikoma-gun, Nara Prefecture)❷ RUNON CO., LTD. (Tokyo)

6

4 Shiga Factory (Koka City, Shiga Prefecture)■

9 10❽ Suminoe Techno Co., Ltd.

Planning and sales of interior products, mainly
carpets and curtains

11 Fukuoka Sales Office■Vietnam

12

2 Tokyo Branch (Tokyo)
■

％

%

13

Bondtex, Inc.

14

7

32.4

32.5

12

Suminoe Textile of America
Corporation

1

6

Overseas sales ratio

Equity ratio

11

Suminoe Textile of America
Corporation (C.A. Design)

2 3 4companies

14 7

billion yen

Mexico11Overseas operation sites

Capital9.5

4

United States

FY

Automotive textiles andtraffic facilities business

54,075
59.1%

Interior fittingsbusiness

North and Central
America

33,300 14,049
36.4%

15.3%

Japan

61,832
67.6%

Ordinary income
ROE* The Company has not determined its forecast for FY2021 (June 1, 2020 to May 31, 2021) of consolidated financial
results since the COVID-19 pandemic made it difficult to make a reasonable estimate of financial results at thetime of preparing this report (October 1, 2020).

Suminoe Textile Group CSR Report 2020

6

Value Creation Process

In line with its Corporate Philosophy, the Suminoe Textile Group will create
value that contributes to society, leading to the realization of a sustainable
society and enhancement of its corporate value.

Social issues

INPUT

Creating Value through Group Synergy

OUTPUT

Resource and energy
shortages

Aging
Declining working
population

Human capital
Concentration of individual
employees’ power andorganizational strength
Strength of human resources
who share the corporate
philosophy

P.19〜20

Traffic facilities
business
P.21〜22

Quality management
Facility maintenance
Production technology

Functional
materials businessP.23〜24

Return on equity: 0.5%

Changes in theindustrial structure

Mobility

7

Suminoe Textile Group CSR Report 2020

Trust based on a historyof 137 years

Natural capital
Resources in alignment with
the Eco-Challenge targets
toward a sustainable societysociety, we will conduct
innovative activities andSocial value

venture into new fields

For all stakeholders

and resolution of social issues.

toward sustainable growth

P.35〜38

Intellectual property

Creating Valuefor Customers
P.15〜24

Net assets: 32,582 million yen
Interest-bearing debts:
22,166 million yen

Social capitalis trusted and needed by

Growth and Successof Employees

ISO promotion

Financial capital
HealthResolving Social
Issues and theCompany’s Issues
Aiming to be a company that

Customers

Research and development
expenditure: 1.117 billion yen

Interior fittingsbusiness

Economic value
Enriched lifestyles
Amenity spaces

Intellectual capital

P.17〜18

Sales and service

Global production system
Capital expenditure:
1.970 billion yen

Automotive
textiles business

Manufacturing

Environmental risk

Manufacturing capital

Production management

ESG

Product development

The Company’s issues

Value Drivers

Ｅ

Initiatives for
the Environment

P.40〜45

Ｓ
P.15〜24
P.35〜39

Initiatives
for SocietyＧ

Enhancing
GovernanceP.29〜34

Results of
CSR Activities
P.27〜28

Contributing to
the SDGs

Corporate Philosophy, Management Plan, CSR Activity Policy P.25〜26
Eco Challenge P.40〜45

Suminoe Textile Group CSR Report 20208

Feature 1

01

ChapterThrough the Experience of the COVID 19 Pandemic

Aiming to Enhance Corporate Value froma Long-term Perspective■ ESG Initiatives

E

The novel coronavirus (COVID-19) pandemic has been threatening people’s health and lives, also having significant impacts on social,economic and corporate activities. The pandemic has blocked people’s movements and physical distributions worldwide, stagnatedeconomic activities, and destabilized the international financial market, rapidly causing a severe recession in the short term. Under thisglobal crisis, people’s sense of values and life in society are greatly changing. To cope with these changes, the Suminoe Textile Group has
adopted the following policy for the future.

G* The information published here is as of the time of preparing this report (October 1, 2020).

Ensuring the Safety of Employees andContinuation of Business Operations
The Company’s Decision-Making
To address the COVID-19 pandemic, after a state of emergency was
declared by the central and local governments in Japan, theSuminoe Textile Group announced its own state of emergency
notifications to respective Group companies in accordance withthe situations on each occasion. Moreover, the Group
implemented advice from related divisions at the Company andtook other appropriate measures.
The assumption is that due to the COVID-19 pandemic, what
is called “the New Normal” will last for more than two years. We
should therefore seek the ideal state of working styles andindividual evaluations on the premise of the New Normal in the
future. As part of countermeasures against the COVID-19
pandemic, we have already introduced remote conferencing,which has proved to be a sufficiently effective means ofcommunication and be able to improve the work efficiency
because of travel time saving. On the other hand, remote
conferencing reminded us of the importance of talking with others
face-to-face. We also realized that the work-from-home system isuseful for employees in terms of infection prevention and time

efficiency, whereas working in their living environments makes it
difficult to draw the line between public and private affairs, more
often ending up in doing overtime since they work irregular hours.
Taking into account both advantages and disadvantages of eachmeasure, we have implemented what we can do by trial and error.
Going forward, the entire Group will continue to make concerted
efforts to overcome this difficult situation.

To prevent the novel coronavirus infection from spreading, wehave established guidelines for infection prevention regarding
our daily operations. By promoting strict compliance with theseguidelines, we take the greatest care to ensure that ouremployees, their families and our customers will not spread theinfection.
Action Guidelines of the Suminoe Textile GroupIn response to the state-of-emergency declaration made by the Japanese
government, each individual member of the Suminoe Textile Group pledges fullcooperation in strictly refraining from going to other prefectures and avoiding
the “three Cs” (Closed spaces, Crowded places, and Close contact settings).
We will implement these pledges to protect Japanese society, our companies,
ourselves and our families.

Develop office environments
Measures to allow employees to have flexible work styles(Staggering working hours and working from home)→ Promote workstyle reforms and operational improvement● Revise BCPs and risk manuals● Revise internal regulations●●● Ensure the health andsafety of employees

Resolve social issues● Resolve social issues● Develop products designed to resolve social issues and● Restructure the core operation system● Diversify risks through globalization

Securing Stable Supply
With the worldwide spread of COVID-19, our global supply chainof raw materials was partly interrupted. However, we are able tocontinue stable supply of products with virtually no problem.
This is because based on our past experiences, we can givecustomers appropriate explanations about changes in the supply
chain, secure the required amounts of raw materials, supply
products in a stable manner, and resolve quality problems.

Social Responsibility to Be Fulfilled as a Company
Preventing the Spread of Infection● Implement infection prevention measures● Promote Eco Challenge

S

ESG management

Ensure the health and safety of employees● Reduce environmental impact

Challenges to Be Addressed as a Company
Business Growth with ESG Management in Mind
Ever since more than four decades ago, the Group has focusedon the development of environmentally friendly products andinitiatives. The Suminoe Textile Group “SUMINOE Environmental
Declaration” announced in 1998 sets forth the Group’scommitment to environmental protection regarding its products
and production processes, in keeping with the philosophy of“KKR+A (Kenko [Health], Kankyo [Environment], Recycle andAmenity). The underlying concept behind this attitude was thatenvironmental protection would be the important theme for the
global environment during the 21st century. Nowadays theimportance of initiatives taken by companies for society is also

environmentally friendly products(Deodorant, antibacterial, and anti-virus products)● Respond to changes in social behavior and lifestyles(E-commerce business and web marketing)highlighted by an external factor, i.e., the novel coronavirus
pandemic. Corporate initiatives for society and for theenvironment are similarly important in pursuing ESG practices
and the SDGs. We will strive for management and businessgrowth while being well aware of such importance.

New Sense of Values
Creating Value in Response to Changes in Society
Now that risk of infection lurks everywhere in our daily lives, ourcorporate behavior and way of thinking have drastically changed.
In the New Normal, which is considered to last for a while in the
future, we will further expand our existing products featuring
antibacterial and anti-virus functions, such as curtains, carpets
and carpet tiles. These products were already on the market
before the COVID-19 pandemic. We will also accelerate theGroup’s environmental philosophy “KKR+A” and promote
initiatives for society in order to “create new value” that is requiredby society. Through such efforts, we aim to grow as a company
capable of dealing with changing values that are sought after by
the market in the age of coexisting with the coronavirus and in
the post-COVID 19 world.

Major infection protection measures taken by
the Group

Hitoshi Iida
Representative Senior Managing Director
Suminoe Textile Co., Ltd.

Avoid face-to-face meetings and business trips
Promote remote conferencing (improvement of the network environment)
Measures to allow employees to have flexible work styles(Staggering working hours and working from home)

9

Suminoe Textile Group CSR Report 2020

Encourage workplace ventilation, washinghands, gargling, and disinfection

Install acrylic plates on the desk

Suminoe Textile Group CSR Report 202010

Feature 1

02

ChapterThrough the Experience of the COVID 19 Pandemic

Feature 2 Aiming to Contribute to Society, Capitalizing on Our Technologies, Products and Services

Building Sustainable Trust between the Company
and Its Employees

Offering Products That Help Resolve Social Issues
Strengthening the Development of Antibacterial and Anti-Virus Products

Workstyle Reforms for Living with
the Novel Coronavirus
I consider it a duty of the Human
Resources Department to create aworking environment where
employees can maximize theirperformance. During the COVID-19
crisis, it is important to establish theenvironment needed to continue
business operations with top priority
given to employees’ safety. Even in
the post-coronavirus period, we willcontinue to utilize new options, suchas online meetings, training andinterviews, which have become
prevalent due to the pandemic, andapply work-from-home guidelines.

Katsuya Kawai
Director, Human Resources
Department
Suminoe Textile Co., Ltd.

Continuing to Utilize New Options
In the age of living with thecoronavirus, working from home has Ryoichi Kusano
become commonplace. It is therefore General Manager, Information
Systems Depatment
necessary for the Information
Suminoe Textile Co., Ltd.
Management Department topromote online applications anddigitization. To begin with, we are
now working to create anenvironment to encourage thewidespread use of communication
tools across the Company. In the
future, we are going to establish asystem foundation that can cope withvarious changes in consideration of
the convenience, security and costs.

Establishing a System Foundation
The COVID-19 pandemic is yet toTsuyoshi Miyake
subside. The Company must
General Manager,
continue to pursue an “organization
CSR Promotion Department
where employees can feel job
Suminoe Textile Co., Ltd.
satisfaction” and a “flexible andresilient organization that cansurvive society” in the age of livingwith the coronavirus as well as thepost-COVID-19 period. The key to
growth of the Suminoe Textile Group
lies in whether or not we canadvance workstyle reforms while
adapting to the New Normal.

The Key to Growth Is to AdvanceWorkstyle Reforms
11

Suminoe Textile Group CSR Report 2020

Paving the Way for a Flexible Working Style

Fuzuki Hattori

I do my work while referencing thereal color samples and prototypes. As
such, initially I could not complete
my job only with my personal
computer, so working from home
was inefficient for me. However, now
I am finding a better way to proceedwith my work from home by setting
a firm schedule. I believe that the
recent pandemic has paved the way
for a flexible working style.

The Suminoe Textile Group has worked on antibacterial processing
technology for around 20 years. In the interior fittings business, wehave marketed carpets and curtains developed by using
CLEANSE®, a Kurabo Industries' antibacterial and anti-virus textile
finishing technology, targeting medical, welfare and educational
facilities since about a decade ago. We have also offered トリプル
フレッシュ®デオ (TRIPLE FRESH DEO)*, which was developed basedon our unique deodorant processing technology. トリプル
フレッシュ®デオ (TRIPLE FRESH DEO) is characterized by not only adeodorant function but also the multiple functions of antibacterial,anti-virus and antiallergen activities. This technology has been

applied to nursing care bed mats and wheelchair cushions, both ofwhich feature a deodorant function. By adding an anti-mitefunction to トリプルフレッシュ®デオ (TRIPLE FRESH DEO), we havealso developed クインテック® (QUINTECH), which has been used in
car mats. At present we are working to expand the lineup of ourantibacterial and anti-virus products and propose interior materials
for automobiles, trains, and buses. The Group will continue todevelop processing technology suitable for each product, thereby
evolving its businesses that protect people’s safety and comfort.

CLEANSE® (Kurabo Industries Ltd.)

トリプルフレッシュ®デオ (TRIPLE FRESH DEO), クインテック® (QUINTECH)

Design Department
Suminoe Teijin TechnoCo., Ltd.

Antibacterial

Keisuke Ryu
Traffic Sales Department
Suminoe Textile Co., Ltd.

Active Introduction of New Tools

Yuka Okamoto
Fabric Department
SUMINOE Co., Ltd.

My department actively introduced
Internet fax (online or cloud-basedfax) and new communication toolson the occasion of implementing thework-from-home system. I hope thatthe introduction of these tools andworking from home will become
widespread Group-wide. The
ongoing pandemic has provided us
with a good opportunity to review
and improve not only the Company’s
initiatives but also individual
employees’ current businessprocedures in response to thechanges in working styles.

Curtains for medical, welfare
and educational contracts* There may be restrictions depending on the intended use of the productand the required performance. Please contact the sales office for details.

Anti-virus

Proactive Review of Our Conventional
Business Procedures
Under the impact of the COVID-19
pandemic, our working styles are
rapidly changing. Through staggered
working hours and working from
home, all the members of ourdepartment were encouraged toproactively review our conventional
business procedures. Moreover, since
I worked from home while my child’s
school was closed, I was able toincrease meaningful time with myfamily. I feel that I can maintainforward-looking attitudes, despite
many difficulties due to inefficient
work and limited going out.

All business segments

Deodorant

Antibacterial

Deodorant

Antibacterial

Anti-virus

Antiallergic

Anti-virus

Antiallergic

Mat for nursing care beds

Bus curtains

Anti-mite

Car mat→ For details, see p.18.

Offering Services in Response to Changes in Lifestyles
Making Proposals for New Living Spaces throughE-commerce Business and Web Marketing

Initiatives for Sales Promotion in Response to the
New Normal Age RUNON CO., LTD.

SUMINOE Co., Ltd.

Recently, people’s lifestyles have been changing, as exemplified
by avoiding going out and teleworking. The Suminoe Textile
Group will further strengthen its e-commerce business and web
marketing in the interior fittings business to address social issues,
thereby meeting new values and needs. In our e-commercebusiness, we will reinforce distribution channels so that customers
can purchase products withpeace of mind without goingout. As for web marketing, we
will focus on information
dissemination via social media
and presentations of new
products through digital
exhibitions. In this manner, we
will continue to make proposals
suited for new lifestyles.

Now it is difficult to conduct sales activities by meeting withcustomers in person as frequently as before. As a new means ofsales promotion, we published videos that explain our products
on a video distribution site. The moving images provide
easier-to-understand explanations on differences between
general and functional products,
including water repellency, stretch
property and other features of ourwallpaper. Customers can view
these videos repeatedly wheneverthey have time. These videos also
can be used as learning tools forour employees. For this reason,
we are planning to distributethe video content
continuously.

Suminoe Textile Group CSR Report 202012

Feature 3

Global Expansion and Introduction of an Overseas Affiliate
Bajio region●

MexicoCheerful and Generous National Character

Global Expansion
Introduction of an Overseas Affiliate: Suminoe Textile de Mexico, S.A. de C.V.
In the automotive textile business, the Suminoe Textile Group has established 12 manufacturing and sales sites in six
overseas countries to supply a total line of automotive textiles to customers around the world.
To satisfy customer needs, we deliver our products to customers in a speedy and stable manner by applying
manufacturing and management expertise we have cultivated in Japan to overseas operation sites.
The respective global sites have also contributed to economic development and job creation in their local communities.

About Suminoe Textile de Mexico, S.A. de C.V.
（STM）
STM is a manufacturing factory of car mats, set up as a 100%-owned subsidiary of Suminoe Textile of America Corp in 2013 in Irapuato City, the state of Guanajuato, located in central
Mexico. The automobile industry has been growing its presence in Mexico as an export base for North America, also driven by the increasing domestic demand for automobiles.
Under these circumstances, STM has come to handle automotive carpets and fabrics, in addition to car floor mats, expanding its scope of business as a company capable of supplying
a total line of automotive textiles—which represents the key feature of the Suminoe Textile Group.
In 2019, STM obtained IATF16949/ISO 9001 certification and introduced its second needle punching machine. In other words, the company strengthened its management andproduction systems at the same time to hone competitiveness. STM has been constantly growing as an operation site that plays an important role in promoting the global strategyof the Suminoe Textile Group.
STM employs 233 people, with female employees accounting for nearly 60%. Among all employees, about 80% are those in their 10s to 30s. STM is a vibrant company
characterized by such a high percentage of young employees. All employees of the company will cheerfully work as a team to supply even higher quality products to the expanding
market in a more stable manner while focusing on low-cost production.

The Bajio region, which is home to STM, is located between the
United States and South America. With many automobile
manufacturers advanced from various countries since oldendays, the region is very tolerant toward people from othercountries. Most Mexican people believe in Christianity(Marianism) and take particular care of their mothers. In general,
Mexican people are cheerful and generous but work seriously.
Probably because of fewer national holidays than othercountries, many Mexican employees spend holidays with theirfamilies. In fact, you can frequently see them enjoying a fiesta(party) with their relatives and friends in the garden at aresidence where many Japanese employees dispatched to
Mexico live. Local employees attach importance to their family
time on holidays, while they work very hard on weekdays.
Communication within the Company and with the Local
Community (Social Contribution)
Besides weekly company-wide meetings, STM has established abasic system for voluntarily holding various meetings to discussdevelopment progress, quality control, production planningand other subjects. Even under the impact of the COVID-19
pandemic as described later, the company strives to ensure that
employees can continue smooth operations by actively holding
web meetings. Also, various in-house events, such as a
Christmas party and a costume contest on the Days of the Dead,are instrumental in promoting communication among
employees. As a community-based company, STM has been
vigorous in promoting communication with the local

Social contribution activity in November 2019
“Canje de Juguetes Bélicos” (Event for exchanging violent toys, organized by
Irapuato City)
The company and its employees donated rubber balls and other toys, whichwere handed to children in exchange for their toy guns etc., which have aviolent image.

community. This fiscal year, the company participated in an
event in which violent toys (e.g., toy guns) brought by children
were exchanged for less violent alternatives. In Mexico, it is notdifficult to purchase guns illegally. For this reason, the above
kinds of events are often held to prevent children from playing
with toy guns and feeling familiar with guns. STM donated kites,
Frisbees and yo-yos, and employees gave rubber balls at theevent. On the day of the event, STM employees directly handed
these toys to children and felt pleased to see many children
smiling.
Impact of the Novel Coronavirus Pandemic and Infection
Prevention Measures
The novel coronavirus has raged fiercely in Mexico as well. Partly
due to the insufficient medical system, the country’s numbers of
infections and deaths are among the highest in the world. To
ensure the safety of employees, STM stopped operating theplant in April and May. Before resuming operations, the plant
was instructed by the Mexican government to take strict
prevention measures and had to undergo inspections. In
response, STM implemented measures to secure commuting
routes and establish working systems to enable employees tomaintain social distancing, distribute personal protective
equipment (PPE) to employees, provide workplaces withdisinfectants, and raise employees’ infection prevention
awareness. As a result, the company was able to safely resume
its plant operations in June. Although there is still no end to thepandemic in sight and people’s daily lives are restricted, STM
continues to take great care to prevent the spread of infection
among employees and their families.

Costume contest on the Days of the Dead
The Days of the Dead (November 1 and 2) may be likened to the Bon festival in
Japan. Various events are held throughout Mexico, and people disguisethemselves for the Day of the Dead, for instance, by wearing skull masks.
As part of its effort to facilitate in-house communication, STM held a costumecontest. (The photo was taken in November 2019.)

Home to the largest number of the world
heritage-listed sites in Central and South America
The World Heritage of “Historic Town of Guanajuato”
against the blue sky in Mexico. The site is a
45-minute drive from the city of Irapuato, where STM
is located.

Shohei Yamamoto Joined the Company in 2008
In August 2019, I took up my new post here at STM. As a salesperson, I am serving as a liaison with customers, primarily Japanese manufacturers. Now
global supply of the same quality products is taken for granted. We are therefore required to establish systems for manufacturing high-quality,
cost-competitive products and supplying them to local manufacturers, amid the shrinking of the market resulting from the COVID-19 pandemic.
It is the first time for me to work at an overseas affiliate, and I am struggling every day to improve myself here in Mexico, where Japanese common
sense does not apply. I am often bewildered by the gaps between the two countries in terms of both work and daily life. However, even in such asituation, I believe that I am gradually learning about the pleasure and hardness of working overseas in the course of communicating with local
residents and customers.

13

Suminoe Textile Group CSR Report 2020

Suminoe Textile Group CSR Report 202014

Businesses and Strategies of the Suminoe Textile Group

Suminoe Textile Group’s Core Technologies and Expanding Product,
Business and Market Fields

For details of our core technologies, please visit the Suminoe Textile website.

New Market Fields
Creating a Synergy by Integrating Technologies of the Group

Existing market segments

Based on our core technologies, we willrefine unique technologies to createhigh-value products, keeping pace withvarious changes.
Core technologies

Interior

Household electricalappliances

Daily necessities

Lamination technology
Automotive
textilesTraffic
facilities
textilesNew Technological Fields

Highly functional
net for screen
doors

3D knitted
material

Grace Cord

(Fabric only fortrim accent)(With body pressure
dispersing function)

Smart textiles

CLOTHCABIN®
Special watersealing sheets

Roofing materials(Lightweight)(Fire-resistant resin
honeycomb structure)

Floor signage
film(Recycled polyester
non-woven fabric)(Fire-resistant)

Water-wetting/sweatinessdetection fabricBathroom flooring(Olefin material)

Roof
tile side
Heatinsulating
property

Carpet tiles(Produced under a“horizontal recycling”
system)Coating technology

Medical andcaregiving services

Products that Offer New Value

Sumi-Honeycomb
Interior
materials

Housing equipment

Mobility

Sources of Value Creation

Textile and knitting
production technology

Healthcare

Roof board side

Biotechnology

Electric
carpets

Synthetic
leather(Polyurethane)

Functionalization technology

Supplement

Recycled polyester
yarn-making technology(TRIPLE FRESH)

Hard cotton
processing technology

スミトロン®
(SUMITRON)

Interior fittings business

Automotive textiles business

Deodorizing
filters

Seat cushion
material

Deodorizers
Tispa Series
柿ダノミ®
(Kakidanomi)(Recyclable)

Traffic facilities business

SUMICUBE®

Cleaningbrushes

Functional materials business

From Manufacturing to Value Creation
We consider that it is our corporate responsibility to contribute tosociety by creating innovative technologies and highly functional
products through our manufacturing activities. We are committed
to manufacturing higher value products by anticipating andsatisfying the needs of our customers both at home and abroad.
To this end, we are not only utilizing our Group’s traditional
technology and production but also making efforts to advanceinto new fields through cooperation with companies from otherbusiness fields as well as with universities and research institutions.

15

Suminoe Textile Group CSR Report 2020

Manufacturing ＝ Technology × Quality

Status of Acquisition of External Certifications for Quality Management System
Organization
Suminoe Techno Co., Ltd. Nara Factory
Including Suminoe Techno Co., Ltd. Shiga Factory and Suminoe
Logistics Co. Ltd. Nara Center

Basic Policy for Quality Management
We strive to maintain and improve our product and service
quality on a continuous basis so as to meet customer
needs, aiming to enhance customer satisfaction.

JIS Q 9100：2016

Suminoe Teijin Techno Co., Ltd.

ISO9001：2015

Teijin Tecloth Ltd.

IATF16949：2016

Suminoe Textile Co., Ltd. (Functional Materials Business Division,
Osaka First Sales Department and Quality Assurance Department)Suzhou Suminoe Koide Automotive Accessories Co., Ltd.
T.C.H. Suminoe Co., Ltd.
SPM Automotive Textile Co., Ltd.

Owari Seisen Co., Ltd.

Bondtex, Inc.

Suzhou Suminoe Textiles Co., Ltd.

Suminoe Textile de Mexico, S.A. de C.V.

Suminoe Textile of America Corporation
Suminoe Textile de Mexico, S.A. de C.V.

JIS Q 17025

Kansai Laboratory Co., Ltd. (Osaka Laboratory)
Kansai Laboratory Co., Ltd. (Nara Laboratory)

Suminoe Textile Group CSR Report 202016

Businesses and Strategies of the Suminoe Textile Group
Overview and Growth Strategies of Each Business Segment

Automotive
Textiles Business

Suminoe Textile Co., Ltd., Suminoe Teijin Techno Co., Ltd., Teijin Tecloth Ltd., Owari Seisen Co., Ltd., Suminoe Techno Co., Ltd.,
Suminoe Textile of America Corporation, Bondtex, Inc., Suminoe Textile de Mexico, S.A. de C.V., SPM Automotive Textile Co., Ltd. (Guangzhou),Suzhou Suminoe Koide Automotive Accessories Co., Ltd., Suminoe Textile Shanghai Co., Ltd., T.C.H. Suminoe Co., Ltd.,
Suminoe Koide (Thailand) Co., Ltd., PT. Sinar Suminoe Indonesia, PT. Suminoe Surya Techno, Suminoe Teijin Techno Krishna India Pvt. Ltd.

Creating a globally optimized supply system for automotive textiles
Business Overview

Advantages

The greatest feature of our Company is that we can supply a total line
of automotive textiles, from floors to ceilings, including headliners,
seat covering materials, car mats, and floor carpets. Outside Japan,
the Suminoe Textile Group has now expanded its overseas presence
by setting up 12 manufacturing and sales sites in six countries (theUnited States, Mexico, China, Thailand, Indonesia, and India), thereby
creating a globally optimized supply system.

Identified Issues❶ Expertise in proposing optimal solutions as a total supplier of
automotive textiles❷ Global manufacturing system that enables production at optimal sites❸ Development capabilities to expand the fields of new materials andconventional textile products❹ Sophisticated textile processing technologies and planning and design
capabilities❺ Comprehensive strength based on integrated expertise of the interior
fittings and automotive textile businesses■ Major Product Lineup❶ Response to the transformation of the automobile industry❷ Responsibility for supplying products even in the event of a disasterbased on BCPs
❸ Response to global risks❹ Global contraction of demand for automobiles❺ Business management to securely capture new markets in line with theSDGs and ESG

Policy and Growth Strategy
Overcome the difficult situations and cultivate a new market using ourorganizational strength in response to changes.
❶ Expand the markets for new products and new components.
❷ Improve quality, cost competitiveness, and delivery systems (QCD).
❸ Promote initiatives to help achieve the SDGs (environmentally friendly
products).
❹ Make effective use of systems (restructure the core information
system).
❺ Develop human resources (strengthen our response to globalization).

■ Delivery Track Records (Progress in Value Creation)

Ceiling material
Seat covering materials
Door trim
Seat backLuggage compartment
Sun visor

Floor carpet
Engine cover
Wheel house

Car matSeat covering materials

Floor carpet

Car matTopicsUnder the slogan of “Intelligent Interior 2.0,”
proposing new car interior design by leveraging the Group’s comprehensive strength

Daihatsu Motor Co., Ltd. has announced its new direction: to focus on the compact car segment. Jointly with Toyota Motor Corporation,
Daihatsu developed new compact SUV models, for which our carpet mats were adopted. At the outset, the customer required us todevelop carpet mats not only with excellent design but also “reliable functionality.” We therefore made a proposal placing the greatestemphasis on the Company’s strong point, i.e., our トリプルフレッシュ® (TRIPLE FRESH) deodorization technology plus other usefulfunctions. To be more specific, we suggested the idea of enhancing the conventionalトリプルフレッシュ® (TRIPLE FRESH), which has beenused in many interior fittings and automotive textiles, by adding anti-virus, antibacterial, anti-allergen, and anti-mite functions. As a result,the customer decided to adopt our products. We are planning to develop this multi-functional processing technology as a new key
product following トリプルフレッシュ® (TRIPLE FRESH).

×

Automotive textiles

Interior

The automotive industry is currently experiencing a
once-in-a-century transformation, where the ways cars are used are
significantly changing, as exemplified by the emergence ofautonomous driving technology and car-sharing. In particular,
autonomous driving technology is considered to turn a car as amere means of transportation to a third living space that iscomparable to one’s home or workplace. The Suminoe Textile
Group has therefore started to propose new car interior design toautomobile manufacturers, under the slogan of “Intelligent Interior2.0” through collaboration among designers from the automotive,
traffic facilities, and interior fittings businesses.
The Group has been accumulating know-how about various
types of interior textiles for building interior, cars and public
transportation facilities. We are also able to deal with all kinds ofinterior materials, including carpets, curtains, seat fabric, ceiling
17

Suminoe Textile Group CSR Report 2020

Highly functional carpet mats treated with multifunctional processing adopted for
Daihatsu ROCKY and Toyota RAIZE

materials and flooring. Furthermore, we can make new design
proposals by reusing and reconstructing our in-house resourcesthat have been developed by individual segments. We have earneda favorable reputation for these new design proposals that only ourGroup can offer. Meanwhile, since car-sharing is a service to be usedby a large number of unspecified individuals, automotive textiles
used for the service must have ease of maintenance, not to mention
lightweight, noise-absorbing and other conventional properties. In
this respect, the Group can also meet such requirements by taking
advantage of its expertise cultivated through producing interiormaterials for trains and buses.
We expect that as autonomous driving technology andcar-sharing come into widespread use while changing the qualityof automotive textiles, the Group’s business will achieve further
development.

Hiromasa Ito
Osaka Automotive
Accessories Department
Suminoe Textile Co., Ltd.

From the development stage, we were required tocreate highly functional and high-grade mats. To meetthe customer specifications, we worked to makeprototypes with considerable difficulty in cutting,sewing and bringing the components nearer toperfection. However, through repeated adjustmentswith the production plant, we were finally able toachieve the texture corresponding to high functions
and receive high evaluation from the customer. After
Toyota Motor Corporation launched the new RAIZE,the car’s cumulative sales volume ranked top in the firsthalf (January to June) of 2020. We will continue toimprove our skills to supply products with a quality that
goes beyond customer expectations, in cooperation
with automotive accessories departments of Tokyo
and Osaka and the design department.

Mayumi Ozawa
Functional Processingand Development Group
Development
Department
Technical Center
Suminoe Textile Co., Ltd.

The multi-functional processing technology that was
employed this time features five functions, developed
based on トリプルフレッシュ® (TRIPLE FRESH) byapplying our original compounding technique andevaluation technology. At the development phase, it
took a lot of trial and error to select suitable raw materials
for the functional agents that enable each function toeffectively work without damaging the carpet texture,
determine their optimal additive amounts, and consider
how to better demonstrate the functions andperformance of the technology. By emphasizing its
appealing features to the customer, we managed tosucceed in its commercialization. In the future we willcontinue to work on product development so that wecan propose technology with functions that makeinterior environments clean and comfortable.

Suminoe Textile Group CSR Report 202018

Businesses and Strategies of the Suminoe Textile Group
Overview and Growth Strategies of Each Business Segment
Suminoe Textile Co., Ltd., SUMINOE Co., Ltd., RUNON Co., Ltd., Suminoe Logistics Co., Ltd.,Interior Fittings Business Suminoe Works Co., Ltd., Sewing Hyogo Co., Ltd., TANGO TEXTILE Co., Ltd., Suminoe Techno Co., Ltd.
Exhibiting our unique technological development capabilities to create
environmentally friendly products at the industry’s top level
Business Overview

Advantages

The Suminoe Textile Group provides a wide variety of interior
products that feature both excellent design and functionality to
public facilities, hotels, schools, hospitals, and office buildings,
as well as for general households.
We are also committed to developing eco-friendly products
under the theme of KKR+A, or Kenko (Health), Kankyo(Environment), Recycle and Amenity.

Identified Issues❶ Preserving traditional techniques and handing them down to future generations (artsand crafts, hand-woven carpets and hooked rugs, and plush hand-woven curtains)❷ Credibility based on track record of delivering products to renowned facilities❸ Exceptional skills to meet customer needs through trinity of merchandizing, design andsales staff❹ Sales promotion targeting customers and design offices by sharing information
between Group companies❺ Strong lineup of high value-added products based on the philosophy of environmental
protection■ Major Product Lineup

Expand sales of environmentally friendly products and realize optimal
product lineups to fulfill our roles as a manufacturer, and increase revenues.
❶ Attempt to open up new routes.
❷ Reinforce web marketing.
❸ Optimize procurement.
❹ Strengthen the “development and sales category” for design of small
and medium-sized facilities and store design.
❺ Augment eco-friendly products for ESG, based on the KKR+A philosophy.

■ Delivery Track Records (Progress in Value Creation)

Carpet tiles

BERRY ALLOC® PURE LVTPlush hand-woven curtains

Hand-woven carpets andhooked rugs

Rugs and mats

Curtains

Wallpaper, sliding paper doors

Nishijin brocade fabricCoin purses and card holders

Topics

TopicsMany hand-tufted carpets and Wilton carpets adopted at The Okura Tokyo

Launch of three series of ECOS® Recycled Carpet Tiles
Produced Using Horizontal Recycling Technology—ECOS LP-2000N, ECOS LP-3100, and ECOS iD-7100

Enhancing a lineup of products that decrease thenumber of specific viruses on the fiber surface withthe addition of “antibacterial and anti-virus” functions

The Hotel Okura Tokyo, which had been rebuilt since 2015, marked its grand opening as “The Okura Tokyo” on September 12, 2019.
The Okura Tokyo comprises two distinctly branded wings: the Okura Heritage, which is restrained and elegant, and the Okura
Prestige, a high-quality, contemporary urban hotel.
We were pleased that the Okura Tokyo adopted many carpets of our Group. These carpets have been installed primarily in theguestrooms, corridors and restaurants of the Okura Heritage Wing, as well as the lobby, entrance and banquet rooms of the Okura
Prestige Tower. In particular, the hand-tufted carpet with checkerboard patterns laid on the floor of the lobby, which features the
traditional design taken over from the main building, enjoys great popularity among guests from home and abroad.

Envelope

Envelope is destroyed.

ECOS LP-2000N - 3100

ECOS iD-7100

All these new products use solution-dyed nylon yarn for piles. As
compared with products produced with the continuous dyeing
method, these new products are superior in terms of color fastness
to light, color fastness to rubbing, chemical resistance, andyellowing resistance to NOx. They can also save water and materials
and require less dyeing effluent treatment. Furthermore, similarly tothe conventional series, the newly added ECOS® series only use
waste carpet tiles as recycled materials for the backing material. In
this manner, while securing safety by controlling the origin ofmaterials in a visible manner, we have realized both waste reduction
and resource recycling. ECOS® has also achieved the same quality
and cost performance level as virgin tiles, using the recycling
system in consideration of ESG. Going forward, the Suminoe Textile
Group remains committed to contributing to the realization of asustainable society by offering ECOS®.

Suminoe Textile Group CSR Report 2020

Destroyed
virus

Curtain

CarpetA virus comes into contact with
Etak® immobilized on the fabricsurface of the curtain andcarpet.

Contact with thecurtain/carpet.

Curtain

CurtainEtak®

19❶ Declining private demand and shrinking market size
❷ Measures to deal with rising logistics costs❸ Shortage of interior finish technicians and problems regarding
succession of the techniques❹ Discerning the market trends in accordance with changes in sales
channels❺ Product lineups as a comprehensive interior manufacturer

Policy and Growth Strategy

CarpetCarpetA tentacle, outer membrane
and the like, which serve as
conduits to cells, are destroyed.

The number of viruses is reduced.

Viruses are lurking in our everyday life. It is important to constantly
take anti-virus measures, such as washing hands, gargling, andwearing a mask. In addition, to have safe and comfortable lives,applying anti-virus finishing technology to interior materials is
expected to reduce the risk. CLEANSE® is an antibacterial andanti-virus textile finishing technology using “Etak®,” which wascommercialized through research by a Doctor of Medical Dentistry.
The immobilized antibacterial ingredient "Etak®" is strongly fixed
onto the fiber surface. In collaboration with Kurabo Industries Ltd.,SUMINOE has produced anti-virus curtains and carpets by applying
this technology.
Etak® is an immobilized antibacterial ingredient commercialized
through the research conducted by Professor Hiroki Nikawa at
Hiroshima University Graduate School.
CLEANSE® is Kurabo Industries' original antibacterial and anti-virus
textile finishing technology, which strongly fixes the immobilized
antibacterial ingredient "Etak®" onto the fiber surface.

Since the customer, Hotel Okura, has a
profound knowledge about carpets,
our project members undertook thetask while studying the past designs
and traditional patterns. To fulfill manyorders received for our products toembellish major interior spaces of the
Kenji Kido
Chiaki Matsuda hotel, we delivered and installed
The Second Blockcustom-made hand-tufted carpets
East Japan Branch, SUMINOE Co., Ltd.
and Wilton carpets, among otherthings.
We are proud to have been able to complete our task throughcombined efforts of the entire SUMINOE Group—including the Design
Department, Suminoe Works, Tango Textile and cooperative factories inJapan—and to have been involved in this project for Japan’s mostsophisticated hotel.

We worked on this project for
approximately two years, from thedesignmeetings
toproduct
installation. Our company was incharge of about 30 areas, and four
design offices took part in the project.
For this reason, two of us were
Miho Akahori Saori Ichikawa assigned to arrange design-related
Design Department, SUMINOE Co., Ltd.
matters.
We closely consulted with therespective designers in charge by holding many meetings, and produced
many prototypes. Then we were finally able to see the delivered carpets, which
moved us very deeply. It was a great honor for us to be engaged in therebuilding work of the Hotel Okura, which is a high-class hotel attracting agreat deal of attention in the industry.

Suminoe Textile Group CSR Report 202020

Businesses and Strategies of the Suminoe Textile Group
Overview and Growth Strategies of Each Business Segment

Traffic Facilities Business Suminoe Textile Co., Ltd., Marunaka Souei Co., Ltd., Suminoe Techno Co., Ltd.
Contributing to Creating Safe and Comfortable Train Cars
Business Overview

Advantages

We have supplied our products to JR, private railways and publicly
operated transportation services, maintaining the top market share formore than a century.
Currently, the Suminoe Textile Group offers total proposals for seatcoverings, curtains, wall materials, flooring materials and other interiormaterials for public transportation systems, such as Shinkansen bullet
trains and other trains, buses, and ships. We also deliver environmentallyfriendly products, including SUMICUBE® seat cushion material, which
excels in terms of both safety and environmental performance.

Identified Issues❶ The industry’s top market share held for more than a century❷ 120 year-long credibility and track record as a pioneer of the industry❸ Capability to offer total proposals for seat coverings, curtains, wallmaterials, flooring materials and other interior materials❹ Environmentally friendly products with excellent safety performance(SUMICUBE® seat cushion material)❺ Wide sales network established across Japan■ Major Product Lineup

Interior materials for trains

Win success through the combination of logic and passion.
❶ Augment functional products for trains, and expand sales by heightening theappeal of our products (development of lightweight and highly functionalmoquette).
❷ Expand our market share by strengthening sales in the bus category.
❸ Expand sales of products for improvement of vehicle safety (floor signagefilm).
❹ Restructure our production system (introduction of a new production system).
❺ Promote sustainability (strike a balance between economy and environment).

■ Delivery Track Records (Progress in Value Creation)

Interior materials for ships

Interior materials for buses

Topics

TopicsOur interior materials adopted for the “Saphir ODORIKO” sightseeing limited express train by JR East Japan

Seat cushion materials for train cars “SUMICUBE®/
hybrid cushion material” adopted for the new 7000
series vehicles for the new transportation system(Astram Line) operated by Hiroshima Rapid Transit

Moquette seat coverings designed in the image of theSDGs adopted for the E235 Series “SDGs Wrapping
Train” for the Yamanote LineThe “Saphir ODORIKO” sightseeing limited express that connects Tokyo and Izu has been in commercial operation since March 14, 2020.
The Saphir ODORIKO, a new train replacing its predecessor for the first time in 30 years, features JR East’s first ever Premium Green seats.
The Premium Green Car represents the operator’s desire to provide passengers with a refined, high-quality, and elegant journey. All thetrain cars, including Green Cars with private compartments and a cafeteria car with an open-kitchen, have skylights, allowing passengers
to experience a sense of openness and comfort. Moreover, barrier-free facilities and storage areas for large luggage are equipped toprovide passenger services caring about the slightest details.
The total car design was supervised by KEN OKUYAMA DESIGN, a renowned industrial design company. These train cars have
employed the seat covering materials, curtains, hand-tufted carpets, and Wilton carpets of Suminoe Textile Co., Ltd. “Saphir” is the French
word for sapphire, a precious gemstone. As its name suggests, the Saphir ODORIKO is highlighted by train cars whose attractive design
fully evokes images of the beautiful sapphire-esque Izu sea and a brilliant blue sky.

SUMICUBE®

SUMICUBE AIR

21❶ Decreasing numbers of procurement networks and production
sites in Japan❷ Shortage of human resources who carry on traditional techniques❸ Enhancing our brand value❹ Improving product added value❺ Strengthening our competitiveness by establishing differentiatedproducts

Policy and Growth Strategy

Section view of SUMICUBE AIR

Commemorative item

The new 7000 series vehicles for the new transportation system(Astram Line) of Hiroshima Rapid Transit went into operation on
March 26, 2020. These new train cars are designed to offer novelty
while taking over the image and symbol colors of the previous
models. The seats of these cars use a hybrid cushion material, whichis created by combining SUMICUBE® and the new resin springmaterial SUMICUBE AIR. The hybrid cushion material is safer, morebreathable, more durable, and more comfortable to sit on.
SUMICUBE® is made from safe materials that do not generatecyanide or other poisonous gases when combusted. This
eco-friendly product that does not cause air pollution is widely usedin train cars all across Japan.

From October 2019 to the end of January 2020, as part of its efforts
toward achieving the Sustainable Development Goals (SDGs), East
Japan Railway Company (JR East) operated the “SDGs Wrapping
Train” (E235 series single-car train), which was wrapped in SDGs
logos, on the Yamanote Line. The E235 series railcar for the
Yamanote Line improved environmental performance by curbing
power consumption and using LED lighting. The Suminoe Textile
Group is also promoting its SDGs initiatives. Fully understanding thesignificance of the social significance of operating the train, weoffered seat coverings designed in the image of the 17 SDGs. In
return for our cooperation, JR East presented us with acommemorative item.

Suminoe Textile Group CSR Report 2020

We worked on the development of interior materials
for Green Car seating throughout the train, which
comprises the Premium Green Car, the Green Cars
with private compartments, and the conventional
Green Cars.
To realize both a high-grade texture and qualitythat conform to the train concept, we held many
discussions and produced many prototypes, whichearned high praise from the customer, resulting in
Shuta Muraoka
the adoption of our products.
Tokyo Traffic Sales Group
It is delightful that I can help passengers enjoy a
Traffic Sales Department
Suminoe Textile Co., Ltd. journey on the Saphir ODORIKO through offering its
interior materials. At the same time, I am determined
to continue striving for the development of productsthat meet customer demand.

Mr. Hideaki Amanuma The Saphir ODORIKO train was introduced
Rolling Stock Technology
CenterTransport & Rolling Stock
Department
East Japan Railway Company

with the purpose of providing passengers
with a sophisticated journey experience. The
materials used for train cars must be durable
and burn-resistant. These materials are also
required to achieve a tasteful design
compatible with the texture, both of which arein line with the railcar concept. In this project,
Suminoe Textile Co., Ltd. greatly supported us
in completing the Saphir ODORIKO by offering
a wide variety of materials for seat and sofa
coverings, fabrics and carpets, which
passengers actually see and touch.

Suminoe Textile Group CSR Report 202022

Businesses and Strategies of the Suminoe Textile Group
Overview and Growth Strategies of Each Business Segment

Functional Materials Business

Suminoe Textile Co., Ltd., Owari Seisen Co., Ltd., Suminoe Techno Co., Ltd.,
Suzhou Suminoe Textiles Co., Ltd., Suminoe Textile Vietnam Co., Ltd.

Delivering products that incorporate our unique technologies andoffering value in new fields
Business Overview

Advantages

The Suminoe Textile Group has delivered products thatincorporate its unique technologies it has accumulated,such as トリプルフレッシュ® (TRIPLE FRESH) deodorizing
filters and olefin bathroom flooring. In addition, the Groupis pursuing endless business possibilities, offering newvalue in the fields of smart textiles and functional foodbased on biotechnology, in keeping with the theme of
KKR+A, or Kenko (Health), Kankyo (Environment), Recycle
and Amenity.

Identified Issues❶ Expanding business fields transcending the boundaries of our traditional businesssegments❷ System to promote the development of diverse applications❸ Effective use of functional processing technologies, including our proprietary deodoranttreatment technology❹ Promoting the development of products that satisfy customer needs, paying attention tofine details❺ Providing reliable products through stringent quality management endorsed by obtaining
JIS Q 9100 certification, a quality management system standard for the aerospace industry■ Major Product Lineup❶ Dealing with matters related to overseas officereorganization❷ Preparation for and response to major social andeconomic changes❸ Quick response to changing customer needs❹ Development of products and their applications inaccordance with the concepts of the SDGs and ESG❺ Development of our proprietary technologies following
the principles of deodorant treatment technology

Policy and Growth Strategy
Enhance business and product value and strengthen business development
capabilities.
❶ Optimize the production and supply system of the household appliance business.
❷ Develop new product applications, taking advantage of functional materials andprocessing technologies.
❸ Expand sales of deodorant treatment and other functional treatment products.
❹ Strengthen cooperation with the development department and reinforce thedevelopment and sales functions.
❺ Promote commercialization of smart textiles.

■ Delivery Track Records (Progress in Value Creation)

Electric carpets

Deodorant air filters
for air purifier

The Tispa Series “RealOdor Deodorization
without Disguisingwith a Scent”

Persimmon peel
polyphenol
supplement

Roofing materials

CLOTHCABIN®

Bathroom flooring

Interior materials
for aircraft

Roof
tile side
Heatinsulating
property

Rug-like surfaces (white, beige, light gray, brown)

Roof board side

Topics

TopicsOur deodorizing filter adopted for
the Plasmacluster antibacterial deodorizer DY-S01
by Sharp Corporation

Establishment of a new company in Vietnam
Suminoe Textile Vietnam Co., Ltd.

Our deodorant treatment technology
トリプルフレッシュ®バイオ (TRIPLE FRESH

BIO) was adopted as a deodorizing
filter for Sharp’s Plasmacluster antibacterial deodorizer DY-S01.
This product is equipped with
Plasmacluster NEXT, which has
increased the ion concentration to
more
than
50,000plasmaclusters/cm3. It also incorporates a
photocatalyst deodorizing filter that
decomposes the absorbed odors
with high efficiency. Even after ten
years, the filter can maintain 94% of its deodorizing performance.
These two features have enhanced the disinfecting and deodorizing effects of the products.
In recent years, more and more odor problems have arisen in
our daily lives, along with increasing numbers of pets kept indoors,high airtight houses, and households with members in need ofnursing care at home. Against such a social background, we willcontribute to creating comfortable indoor air environments inaccordance with various living settings.
23

Suminoe Textile Group CSR Report 2020

Electric carpets constitute the core of our functional materials
business. Currently, we have a production site of electric carpets in
Suzhou, China. To further strengthen our production and supply
system, we have established a new company in Vietnam. The newcompany is located in the Dong Van III Industrial Zone, Ha Nam
Province, in northern Vietnam. It will be mainly engaged in
production and sales of textile-based heating appliances (electriccarpets and blankets, etc.). In the future, we are planning to expand
the plant’s role to include the development and production ofhealth appliances as well as small appliances other than electriccarpets and blankets.

Our flooring materials for TOTO’s“SAZANA” bathroom unit have been revamped.
Since 2014, Suminoe Textile Co., Ltd. has supplied the flooring material for the Hokkarari Floor used in the bathroom unit “SAZANA” line of TOTO
Ltd. The flooring material is characterized by the use of olefin, which makes it friendly to both people and the environment. Olefin comprises
carbon (C), hydrogen (H) and oxygen (O) and does not emit toxic gas during burning. In conjunction with the full model changeover of the
SAZANA series, a rug-like flooring material was launched in February 2020. Major changes from the previous material are found in the external
appearance. We were entrusted to design a newly added brown version. Also, the embossed pattern on the surface was changed in size from
14 x 14 mm to 8 x 8 mm.
In meeting the requirements from TOTO Ltd., we worked not only to maintain strength and physical properties necessary for bathroom
floors but also to reproduce various functionalities. The densely embossed surface is slip-resistant as it fits to the soles of the feet. The soft
texture realized by olefin material offers a space with a sense of security. The entire floor surface is treated with special hydrophilicity. The floor
is stain-resistant, and even if stained, it is easy to clean. It is also designed to dry completely by the next morning after bathing; water remaining
on the surface can flow along grooves that are cut more finely. The new flooring material helps users enjoy a comfortable and relaxing time.

Kota Yokoyama
Osaka Second Sales
Department
Functional Materials
Business Division
Suminoe Textile Co., Ltd.

This full model changeover of the Hokkarari Floor
was the first major task for me. I worked on
prototype fabrication many times in collaboration
with the Company’s technological and production
staff as well as members from related companies.
Although there were plenty of challenges, I think I
was able to produce a good product that satisfied
the requirements from TOTO thanks to great support
and contribution of all those involved.
Through this task, I learned a lot of lessons
about the pleasure and pain of manufacturing as amaker. I would like to continue striving for good
manufacturing by leveraging this experience.

It was the most important mission I ever had because thefull model changeover and in-house manufacturing oflamination in the production process were themes that
could not fail. We worked out processing conditions fromscratch, in order to realize fine embossing by multilayer
sheet processing using heat lamination technology that
the Company introduced for the first time, while also
fulfilling the high quality requirements. Making
prototypes by trial and error entailed constant efforts to
Naofumi Sumi
accumulate and analyze huge amounts of data. ThroughProcessing Section,
Production Department these endeavors, we made a breakthrough, which led us
Nara Plant
to the successful commercialization. We are grateful to
Suminoe Techno Co., Ltd.
those who cooperated with us in this project. Aiming at
stable production of even higher quality products, I will
pursue further study.

Suminoe Textile Group CSR Report 202024

Foundation that Supports Growth

Initiatives for CSR
Corporate Philosophy and CSR System of the Suminoe Textile GroupCSR Activity Policy
Company Purpose

We contribute to the improvement of society throughthe production and sales of good products, and a prosperous business.
Company Motto

Code of Conduct

We pride ourselves as a pioneer in the interior design
and furnishing industry and persist in a spirit of cooperation,
sincerity and determination.
Company Purpose

Company Motto
Code of Conduct

1. We comply with all laws and ethical business standards,
and conduct corporate activities in an impartial andethically sound manner.
2. We contribute to the advancement of the community
through the production and sale of high-quality products.
3. We treat all employees of the Company fairly, act with
due respect for their individual personalities, and placehigh importance on their health and safety.
4. We place high priority on maintaining good
relationships with all our stakeholders.
5. We make proactive contributions to the community, as
expected of a good corporate citizen.
6. We take very seriously the impact of our businessactivities on the global environment, and contribute toenvironmental preservation initiatives.

Suppliers* For this fiscal year, we established the CSR plan on a single-year basis, although it had usually been formulated on a medium-term basis along with the medium-term
management plan. The Group decided to postpone the announcement of its new medium-term management plan since it cannot foresee the end of the COVID-19 pandemic(as of October 1, 2020).

Seven SDGs on which the Suminoe Textile Group focuses
Achieve genderequality and empower
all women and girls

Ensure access toaffordable, reliable,
sustainable andmodern energy for all

Promote sustained,
inclusive and sustainableeconomic growth, fulland productive
employment, anddecent work for all

Make cities andhuman settlements
inclusive, safe, resilientand sustainable

Ensure sustainableconsumption andproduction patterns

Take urgent action tocombat climatechange and its
impacts

Build resilient
infrastructure,promote inclusive andsustainableindustrialization andfoster innovation

Employees
Local communities

Global environment

CSR Plan (Period: June 2020 - May 2021)
ESG *
item

Specific management strategies

Suminoe Textile Group CSR
CSR through Business Operations

Offering products that contribute to the global environment and society, andwhich enrich people’s lives and minds, in line with our fundamental
philosophy of “KKR+A (Kenko [Health], Kankyo [Environment], Recycle andAmenity)”
Promoting global strategies, to ensure that our products will be used by many
more people, and to promote “KKR+A” around the world.

Communication with Stakeholders

Priority issues

Measures (initiatives)G

1 governance● Promote fair business activities● Internal control

G

2 Compliance● Implement compliance training● Implement harassment prevention training● Risk management

G

3 practices

G

4 plan BCP

Corporate

Related SDG(s)CSR that Serves as a Management Foundation

Establishing a fair and highly transparent governance system.
Ensuring thorough compliance* to conduct corporate activities with a high senseof ethics.
Supporting employees to develop themselves through worthwhile work, while
giving consideration to the creation of an employee-friendly environment and thediversity of employees.
* Compliance: A company’s process of making decisions and taking action in
observance of laws and corporate ethics so as to live up to the expectations and trustof society.

Based on our CSR activity policy, we work to provide value to our stakeholders as described below. In doing so, we will establish favorable relationships with our
stakeholders, and contribute to the global environment, thereby fulfilling our responsibilities to the next generation.
Customers

Suppliers

Shareholders and investors

Local communities

Employees

Global environment

We will strive to sincerely
respond to ourcustomers, by earnestly
listening to their voices.
Taking great pleasure increating comfortable
spaces together with ourcustomers, we aim to gain
their trust. We also pushforward with ourquality-improvement
efforts.

We attach great
importance to ourrelationships with our
suppliers, and work
together with them toimprove our customer
service capabilities. We
strive to conduct fairtransactions on an equal
footing, by selecting
suppliers based onrational criteria regarding
price, quality, delivery
times, etc.

By securing appropriate
profits, we aim to giveback to our shareholders
and investors. We will also
work on proactive
information disclosure,through our investor
relations (IR) activities.

We will deepen exchangewith people in various
countries and local
communities, so as tobetter understand theircultures and histories. At
the same time, we will
carry out social
contribution activities.

We will develop
comfortable working
environments, byrespecting the individual
personalities andcharacteristics of ouremployees. We will also
live up to our employees’
hopes to maximize theirown abilities to resolve
various issues andchallenges.

We will devote ourenergies to developing
attractive environmental
products and technologies
that contribute to thepreservation andimprovement of the global
environment. Moreover,through our business
operations, we will strive todecrease our impact on
the environment (e.g.,energy saving, resource
conservation, and waste
reduction).

Suminoe Textile Group CSR Report 2020

CSR PlanWith ESG management in mind, the Suminoe Textile Group has identified its priority issues and formulated a CSR plan, with a central focus
on the restructuring of corporate governance and the growth of business. Under the plan, we are working to reinforce our CSR initiatives.

Shareholders
and investors

Customers

25

To further enhance its corporate value and win a broader range of social trust, the Suminoe Textile Group aims to simultaneously
advance both “CSR through Business Operations” and “CSR that Serves as a Management Foundation.”

S

S

E

Fair operating

Business continuity● Administer education regarding the Subcontract Act● Promote procurement based on the Green Procurement
Guidelines● BCP measures to be taken in the event of a disaster or pandemic5

Human resource
development andworking styles● Improve education and training programs● Develop global human resources● Respect diversity (women’s empowerment and Senior Employees)● Work-life balance (workstyle reforms and encouraging male
employees to take childcare leave)

6

Occupational
health and safety● Create a comfortable working environment (promote
employees’ health)● Correct the issue of long working hours and increase the use of
paid leave● Prevent occupational accidents

7

Environmental
impact reduction● Prevent global warming (reduce CO2 emissions)● Prevent environmental pollution● Develop environmentally friendly products● Eco Challenge

After specifying the issues that the Suminoe Textile Group should address, we have identified “priority issues.” Then we have formulated the measures (initiatives) to grapple withthese issues.
In the above process, we have also clarified the relationship between these issues and ESG items as well as the SDGs.
* ESG stands for Environmenta, Social and Governance.
Recently, the idea that these three aspects are necessary to achieve long-term growth has become widespread in the world.

Suminoe Textile Group CSR Report 202026

Foundation that Supports Growth

Initiatives for CSR
Fiscal 2019 Results of CSR Activities
Referencing the ISO 26000 guidelines, we have classified CSR activities into seven categories, for each of which we have set medium-term targets.
The results for fiscal 2019 are shown in the table below.
FY2019 targets

FY2019 results

Selfassessment

Hold discussions at meetings ofthe Board of Directors, the Boardof Corporate Auditors and othercommittees, to promote faircorporate activities.

Hold meetings of the Board of Directors and theBoard of Corporate Auditors.
Review activity plans at CSR Promotion Committee
meetings.

Held meetings of the Board of Directors nine times andmeetings of the Board of Corporate Auditors nine times.
Held meetings of the CSR Promotion Committee
meetings four times to review activity plans.

A

Reduce the number of material weaknesses requiring
disclosure in the internal control evaluation to zero.

Implemented activities with the Financial Control
Committee playing a central role. [Result: Number ofmaterial weaknesses requiring disclosure: 0]* The schedule was delayed due to the COVID-19
pandemic.

B

Promote the Code of Conduct
and the Code of Corporate
Behavior of the Suminoe Textile
Group.

Provide compliance education at training by level.
Distribute the Compliance Guidance to new
employees and hold seminars to provide them withbasic compliance knowledge.
Hold compliance workshops
Timely publish compliance information through thein-house intranet. [Rate of plans implemented :100%]

Provided compliance education at training by level
and training for new employees. [Rate of plans
implemented :100%]
Held compliance workshops for manufacturing
departments (Shiga Factory of Suminoe Techno, Teijin
Tecloth, and Owari Seisen).
Read the Code of Conduct aloud in unison at themorning assembly and weekly meetings.

A

Continue compliance relatedmonitoring.

Conduct compliance audits in rotation. [Rate of plans
implemented: 100%]

Conducted compliance audits in rotation. [Rate ofplans implemented: 100%]
Conducted compliance audits for overseas subsidiaries.

A

Announce the Hotline to all
employees.

Announce the Hotline to all new employees.
Announce the Hotline to all employees on theoccasion of training by level, harassment prevention
training or workshops. [Target:100%]

Announced the Hotline to all new employees.
Announced the Hotline to all employees on theoccasion of training by level, harassment prevention
training and workshops. [Result :100%]A

Fair
and implement legal educationtransactions and monitoring concerning

Hold legal training programs and study meetings
regarding the Subcontract Act, etc.
Conduct internal audits. [Rate of plans implemented:
100%]

Held study meetings, briefing sessions andawareness-raising activities regarding the Subcontract Act
and response to the revision of the Japanese Civil Code.
Conducted internal audits. [When on-site audits were
not possible due to the COVID-19 pandemic, only
document audits were conducted.]

B

Promote the Green Procurement
Green
Procurement Guidelines.

Distribute the guidelines to suppliers and collect
Green Procurement records. [Target: Once a year]

Distributed the guidelines to suppliers and collectedGreen Procurement records. [Result: Once a year]

A

Increase the percentage of employees withdisabilities.

Did not achieve the legally required percentage of
employees with disabilities.

C

Implement measures to improve Senior Employees’satisfaction.
Publicize the active roles played by Senior Employees
through the CSR report.

Continued to preserve knowledge and skills of Senior
Employees and hand them down to future generations.
Publicized the active roles played by Senior
Employees through the CSR report.

B

Improve the systems for supporting employees in caring
for children, the elderly and other family members.
Promote a work-life balance (by promoting
no-overtime days, increasing the use of paid leave, andencouraging male employees to take childcare leave).

Created guidelines for working from home and a survey
report on the situation of working from home as part ofcountermeasures against the COVID-19 pandemic.
Promoted a work-life balance (by promoting
no-overtime days and increasing the use of paid leave)

B

Implement group training to help
employees improve their skills
and abilities.

Provide training sessions by level and by theme andimprove the content of these sessions.
Implement training sessions by carefully selecting
themes suited for employees (referencing the traineequestionnaire survey results).

Training by level: Discussed the content as in previous
years.
Self-development training: Implemented the training
on the themes “Critical Thinking” and “Service
Innovation.”A

Develop global human resources.

Provide prior training for employees who will leave foroverseas duty.
Continue to provide foreign language training programs.
Hold meeting to exchange information with
employees who have experienced working overseas.
Distribute a crisis management guide.

Administered TOEIC tests for new employees.
Provided foreign language training programs (school
attendance course, correspondence course, online
course, and prior training for employees who will
leave for overseas duty).

B

Women’s empowerment

Dispatch female employees to the Women’s
Empowerment Support Forum.
Hold seminars intended for women.
Implement round-table discussions between female
employees and their role models (their seniors andfemale managers).
Operate the Job Return System and promote the
System among Group companies.

Dispatched female employees to the Women’s
Empowerment Support Forum.
Publicized the active roles played by female employees
through the CSR report and at each training program.
Obtained certification from Osaka City as a Leading
Company in Women’s Participation.
Obtained certification from Osaka Prefecture as a
Men & Women Ikiiki Plus Company.

B

Implement “management by walking around.”At each operation site, hold interviews with
employees to promote communication with them.
Hold lunchtime meetings.
Implement measures to foster next-generation leaders.

Management Meetings as part of “management by
walking around” were not held at operation sites
other than the Suminoe Textile Head Office after
February because of the COVID-19 pandemic.
Held lunchtime meetings and interviews with
employees to promote communication with them.

B

P.29
〜32

Compliance

Visualize the status of contracts
business transactions.

ーRespect for
Diversity

P.35
〜38

Implement activities to create acomfortable working
environment that respects thediversity of employees.

Human
Resource
Development

Revitalization of human resources

P.36

Occupational
Promote activity plans to protect
Healththe safety of employees.
and Safety

Suminoe Textile Group CSR Report 2020

P.36

Priority
item

FY2019 targets

FY2019 results

Selfassessment

Continue to provide anti-harassment training.
Further notify the contact points for harassment
consultation.
Increase the number of harassment counselors(including those working at affiliated companies).

Provided anti-harassment training to employees who
had not yet received the training.
Further notified the contact points for harassment
consultation.
Measures were not implemented to increase thenumber of harassment counselors.

B

Manage and grasp employees’ overtime work hours.
Hold interviews with employees who work longhours.
Implement measures for operational improvement.
Make the rounds of workplaces on no-overtime days.

Periodically checked employees’ overtime work hours,
confirmed whether there were differences between
actual working hours and the records on the time
recorders, and provided guidance where necessary.
Held interviews with employees who work long hours.
Made announcement on the public address system
to prompt employees working overtime to returnhome early.

B

Discuss activities to raise employees’ awareness of
their health improvement.

Did not hold discussions on awareness-raising
activities for employees’ health improvement.
Helped employees with flu vaccination expenses.

B

Conduct a safety confirmation drill at otheroffices/factories.
Conduct a BCP drill including procedures forcommunicating relevant information to customers at
the Head Office.
Hold discussions on improvement of the method of
confirming personal safety information.

Conducted a safety confirmation drill at the head
office of SUMINOE Co., Ltd.
Did not implement a BCP drill including proceduresfor communicating relevant information to customers
at the Head Office.
Discussions are under way on a new method of
confirming personal safety information.

B

Intellectual Promote understanding ofproperty intellectual property.

Implement awareness-raising activities regarding
intellectual property rights (through the in-house
intranet and training sessions). [Rate of plans
implemented :100%]

Implemented awareness-raising activities regarding
intellectual property rights (through the in-house
intranet and training sessions). [Rate of plans
implemented :100%]A

Provide information security
education (security of information
Information terminals and personal
information protection).

Provide information security education at training bylevel.

Provided information security education using a DVD
at training by level.

A

Implement awareness-raising activities regarding
insider trading.

Implemented awareness-raising activities regarding
insider trading through the in-house intranet.

A

BCP

Have the Central Health and Safety Subcommittee
consolidate opinions and promote information sharing.
Share information related to occupational accidents.
Target for the rate of lost-worktime injuries: 1.0 or lower
Provide safety education.
Implement risk assessments.
Conduct mutual patrols between different factories/offices.

The Central Health and Safety Subcommittee
consolidated opinions and promoted information sharing.
Shared information related to occupational accidents.
The rate of lost-worktime injuries stood at 2.00, fallingshort of the target.
Regularly provided safety education.
Implemented risk assessments (at the Shiga Factory
and the Nara Factory).
Conducted mutual patrols between the offices/factories
where Health and Safety Committee meetings were held.

B

Carry out disaster drills. [Rate of plans implemented :100%]

Carried out disaster drills. [Rate of plans implemented: 100%]Aー

Major theme

Occupational
Promote activity plans to protect
Healththe safety of employees.
and Safety

P.33
〜34

Risk Management

Governance and compliance
Operating practices
Human Rights, employment, treatment of employees, and human resource development
Safety, disaster prevention,and health27

internal control over financial
reporting of Group companies
that fall within the scope ofassessment.

CSR Related
category page

Safety, disaster prevention,and health

Major theme

Corporate
governance Evaluate the effectiveness of

P.31

A: Accomplished B: Almost accomplished C: Not accomplished

Consumer issues / Social contribution
management activities

Priority
item

Promote a business continuity
plan (BCP) to be implemented in
the event of emergency ordisaster.

security

Carry out awareness-raising
activities to prevent insider trading.

P.15
〜16

Quality
Promote quality improvement
improvement efforts.

Regularly hold Quality Assurance Joint Meetings
Implement quality improvement activities (activities
to reduce the percentage of defective products andlosses due to defective quality).
Continue to implement activities to share theinitiatives regarding chemical substances regulations.

Regularly held Quality Assurance Joint Meetings, fourtimes a year.
Implemented activities to share the initiatives
regarding quality improvement (activities to reduce
the percentage of defective products and losses due
to defective quality) and chemical substances
regulations.

Aー

Customer Appropriately respond tosatisfaction customers and share customer
service experience
improvement company-wide.

Report the content of inquiries/complaints received
by the Customer Service Center to the CSR Promotion
Committee.
Analyze the contents of complaints and results of the
responses to these complaints.
Develop products incorporating customer opinions.

In FY 2019, the Customer Service Center received
2,192 inquiries/complaints. Among them, inquiries
about products, standards, prices and functionality
accounted for 24% (516 cases), and complaints
accounted for 3% (57 cases). Regarding complaints,
after classifying their contents and analyzing theircauses, we will utilize the results for the next time wedevelop products.

BーInformation Properly disclose investor
disclosure relations information.

Disclose IR information related to our corporate
activities in a timely manner.
Disclose in a timely manner the quarterly summary offinancial results to the Tokyo Stock Exchange, andpublished the summary on the Company’s website
without delay.

Disclosed IR information related to our corporate
activities in a timely manner.
Disclosed in a timely manner the quarterly summaryof financial results to the Tokyo Stock Exchange, andpublished the summary on the Company’s website
without delay.

A

Engage in external communications.
Enhance CSR and corporate branding initiatives.

Set up Suminoe Textile booths at various exhibitions,
including JAPANTEX 2019 and the 88th Tokyo
International Gift Show.
Each Group company redesigned its website, aiming
to improve its corporate brand image.
Increased the number of dialogs with institutional
investors as compared with the previous fiscal year
and actively communicated with them, aiming topromote their understanding of the Group’s businessand its results.

Aー

Promote communication with
External
Stakeholders (publicize thecommunications strength of the Company).

P.39

Socialcommunities.
contribution Carry out social contribution
activities activities relating to

Formulate a policy for social contribution activities.

Continued local contribution activities andenvironmental protection activities.
Willingly engaged with the local communities, andparticipated in activities for regional preservation andrevitalization.

B

Reduction ofenvironmental
impact from Prevention of global warming
business
activities

Reduce energy consumption and fuel consumption
by company-owned vehicles each by 1% as part ofour efforts to prevent global warming.
Improve the rate of use of recycled materials by 1%.
Reduce the amount of industrial waste generated by
1% (as compared with fiscal 2017, in terms of basicunit).

Achieved the reduction target for energy
consumption.
Reduced fuel consumption by company-owned
vehicles, but fell short of its reduction target.
Did not achieve both the improvement target for therate of use of recycled materials and the reduction
target for the amount of industrial waste generated(as compared with fiscal 2017, in terms of basic unit).

B

Contribute to the local

environmental protection.

Environment

CSR Related
category page

P.40
〜45

Suminoe Textile Group CSR Report 202028

Foundation that Supports Growth

Enhancing Governance
Establishing a Trustworthy Corporate Foundation—Fair and Sound Management
CSR Promotion System

Corporate governance*

The CSR Promotion Committee is an organ that plays a central rolein promoting CSR initiatives. The Committee holds its meetings four

Governance Systemtimes a year at the Head Office of Suminoe Textile Co., Ltd. At these

To secure the soundness and efficiency of management, we havemeetings, the Committee members make decisions on the policies

been appointing outside directors and strengthening the function

for CSR-related activities, deliberate on each subcommittee’sof the corporate auditor system. The Board of Directors functions as

activity plans, and confirm their progress.

a body for making management decisions in a speedy and agile

They are also engaged in discussions on the medium- tomanner and for overseeing the status of business execution. The

long-term recurrence prevention plan and check its progress. In so

Company has also introduced an operating officer system, underdoing, the Committee works to enhance governance andwhich operating officers are held responsible for business execution.

compliance.

In this manner, we ensure the effectiveness of governance.
* Corporate governance: The mechanisms by which company management is
controlled and supervised, in order to enhance its management transparency
and corporate value

Individual subcommittees conduct a series of lively discussions
in order to identify the CSR issues to be addressed and implement
specific measures to tackle these issues.

■ Corporate Governance and CSR Promotion System

General meeting of shareholders
Selection/dismissal

Selection/dismissal

Board ofCorporate Auditors
3 auditors(including 2 outside
auditors)

8 directors(including 3 outside
directors)onAccounting auditor

Cooperation

Ichizo Yoshikawa Yoshiaki Tanihara Hitoshi Iida

pe
Coo
on
rati
Suminoe Textile Group CSR Report 2020

CSR & Internal
Control Council

Direction andsupervision
Respective
departments, Head
Office, and Group
companies

Teppei Nagata

Director
General Manager, InteriorBusiness Headquarters
President, SUMINOE Co.,Ltd.

Hiroaki Usugi

Chairman and President

Representative Senior
Managing Director
General Manager,
Automotive Textiles
Business Headquarters

Representative Senior
Managing Director
General Manager,
Administration
Headquarters
Assistant to the President

Takashi Yokota

Kohei Nomura

Kiyokazu Ichikawa Atsuhiro Sonoda Takafumi Katayama

CSR Promotion Committee
Compliance Risk Management
Subcommittee

Director
Vice General Manager,
Administration Headquarters
Manager, Corporate Planning
Department
Manager, Accounting
Department, and Manager,
Purchasing Department

Central Health and
Safety Subcommittee
Human Resource (Development
and Health) Subcommittee

Meeting ofOperating Officers

Audit

Meeting of Operating Officers
The Meeting of Operating Officers comprises President and operating
officers of Suminoe Textile Co., Ltd., and holds its meeting once amonth. At the monthly meeting, the decisions made by meetings ofthe Board of Directors or by the Management Meeting areannounced, and reports are made on the present status of businessexecution by each operating officer.

Nomination andRemuneration
Committee

Representative
Directors
Management
Meeting

Audit

Management Meeting/CSR & Internal Control Council
A Management Meeting is held every week, in principle, to report anddeliberate on important management matters. Matters of particularimportance will be reported to the Board of Directors. CSR-related
important matters and evaluation of internal controls concerning
financial reports are discussed at a meeting of the CSR & Internal
Control Council. The meeting is attended by one full-time corporate
auditor as an observer.

■ Management

CSR Promotion System

era
ti
Coo
p

Nomination and Remuneration Committee
The Nomination and Remuneration Committee is set up as anadvisory body to the Board of Directors. The Committee aims tostrengthen its oversight function by improving transparency andobjectivity in the evaluation and determination processes concerning
the nomination and remuneration of the members of the Board of
Directors, thereby further enhancing the corporate governancesystem.
The Committee membership comprises five directors selected bya resolution of Representative Directors, independent outside

Selection/dismissaland supervisionInternal Auditing
Department

29

Board of Corporate Auditors
The Board of Corporate Auditors consists of three auditors (including
two outside auditors). The Board decides auditing policies and plansand deliberates on audit reports.

directors and the Board of Directors. The majority of the membershipshould be outside executives, including independent outside
directors.

Selection/dismissal

Board of Directors
Audit

Board of Directors
The Board of Directors comprises eight directors (including threeoutside directors) and supervises business execution and makes
decisions on important matters.

Consultation
services foroverseassubsidiaries
Corporate
Ethics Hotline

Environmental Promotion
Subcommittee
Product Liability (PL)Subcommittee
Financial Control Committee

Haruo Shimizu

Outside Director
Outside Director (in chargeof Audit Committee), Bando
Chemical Industries, Ltd.
Outside Director, Ashimori
Industry Co., Ltd.

Outside Director
Executive Officer,
Takashimaya Co., Ltd.

Outside Director
Representative Attorney,
Nomura & Partners

Corporate Auditor

Outside Corporate
AuditorVice Manager, Financial
Department, Planning
Division, Takashimaya
Co., Ltd.

Outside Corporate
Auditor
Representative Director &President, Marubeni Intex
Co., Ltd.

Suminoe Textile Group CSR Report 202030

Foundation that Supports Growth

Enhancing Governance
Establishing a Trustworthy Corporate Foundation—Fair and Sound Management

Ensuring Compliance
Basic Policy
Corporate Activities in Compliance with Laws andCorporate Ethics
We have formulated the Suminoe Textile Group Code of Conduct
and the Suminoe Textile Group Code of Corporate Behavior, both ofwhich lay out the basic policy for implementing compliancemanagement.
In keeping with the basic policy, officers and employees of theSuminoe Textile Group strive to ensure that their own ways ofthinking and behavior are always in compliance with laws andcorporate ethics.

Compliance Measures
Creating a Corporate Culture to Develop Compliance
Awareness in Daily Operations
The Suminoe Textile Group communicates relevant information todevelop compliance awareness among officers and employees
through various media contents. For example, the Compliance
Guidance issued in April 2017 is used as a tool for lectures oncompliance, which arecontinuously provided for
employees at the time they
enter the company andtraining by level.
English and Chineseversions of the Guidance were
distributed to employees ofoverseas Group companies.
Employees are also
encouraged to recite the Codeof Conduct in unison to help
foster their awareness ofcompliance.
Poster on which the Code of Conduct
is printed

Compliance Guidance(Japanese, English and Chinese versions)

31

Suminoe Textile Group CSR Report 2020

Compliance Education
Repeatedly Conducting Awareness-Raising
Activities for Enhancing Corporate
Governance and Ensuring Compliance
As a fundamental principle of corporate activities, we need tocomply with laws and regulations that are applicable to various
situations, with a strong sense of ethics.
The Suminoe Textile Group has repeatedly provided
compliance education on a regular basis. In accordance with thecompliance training plans designed for each operation site, thisfiscal year we organized workshops targeting the production
departments at our Group companies. These workshops were heldat Teijin Tecloth Ltd. with 67 trainees and at the head office of Owari
Seisen Co., Ltd. with 106 trainees. These trainees shared theircompliance awareness regarding what are the risks underlying theirwork and what are misconduct risks, from the viewpoints ofcompliance in the production departments.

Whistleblowing System
Announcing Whistleblowing Contact Points andEncouraging Their Use
We have established the Corporate Ethics Hotline as a whistle-blowing
system covering the entire Group. We encourage employees to use theHotline to submit a report should they find incidences of violation oflaws and regulations or corporate ethics. The Corporate Ethics Hotline
Management Office serves as the in-house contact point for
whistleblowing. For consultation outside the Company, employees
may use an outside attorney’s office, an external contact point
exclusively for consultation on harassment, and outside healthconsultation services. All Group employees are notified of andencouraged to use these contact points on occasions of in-housetraining and compliance workshops to ensure that they can seek
consultation easily and with peace of mind.
■ Consultation services used (number of consultations received)

Consultation contents / FY

2018

2019

Corporate Ethics Hotline

2

1

Outside attorney01

Health consultation service (consultation on harassment)

02Harassment consultation contact point

8

0

Total

10

4

Management by walking around
Discussions on Each Worksite’s Problems Based on
Interactive Communication between Employees
and Management Executives

Fair Trade (Compliance with the Subcontract Act)
Implementing Periodic Seminars on
Subcontract Act
The purpose of the Suminoe Textile Group is to “contribute to theimprovement of society through the production and sales of good
products and a prosperous business.” To this end, we consider itvery important to deepen the relationship of trust with our
suppliers. With particular emphasis on compliance with the
Subcontract Act, we continue to take various measures to ensure
appropriate and smooth management of subcontracting
transactions.
As educational and awareness-raising measures, the Legal
Affairs Group of the CSR Promotion Department holds in-houseseminars to prevent violations of the Subcontract Act and promote
employees’ awareness of the Subcontract Act. This fiscal year, after
the revision of the Subcontract Act Compliance Manual, theseseminars were held with the participation of 41 employees.

The Suminoe Textile Group implements “management by walking
around,” through which management executives share informationand interactively communicate with employees. Executives (directors
and operating officers) of Suminoe Textile Co., Ltd. visit Group
companies and their offices and factories to exchange opinions with
employees of respective worksites.
As part of management by walking around, from September 2017
to November 2019, our executives also went to various sites
abroad—starting with two sites in Indonesia, they visited one site in
Mexico, two sites in the United States, four sites in China, one site inIndia, and two sites in Thailand. On these occasions, presentations were
given on the consolidated Group summary and open-management,
and training programs were held on the themes of compliance andoverseas risks, thereby enhancing compliance awareness among
overseas employees.

Questionnaire Survey on Workplace Comfort(In-house Employees’ Opinion Survey) 2020
Realizing a Comfortable Working Environment andChecking on the Progress of CSR Activities
The Questionnaire Survey on Workplace Comfort is conducted
once a year for all Group employees both in Japan and overseas inorder to assess the progress of CSR activities and utilize the results
for future initiatives.
In this year’s survey, those who agreed to “I find my present
work rewarding” increased by 0.06 points from the previous year. As
for questions regarding “staying in the same job too long” and“information and know-how sharing,” the survey results reminded
us that we should continue to take improvement measures. We will
also redouble our efforts for “promoting women’s empowerment”
as a primary initiative to revitalize human resources.
The questionnaire results are reported to the Management
Meeting, the Meeting of Operating Officers, and the responsible
personnel in each department. These results are also madeaccessible to all employees through the in-house intranet.

Major Responses to the Survey(Results of General/Contract Employees)

All Group employees both in Japan and overseas were targeted.
Questions were asked in eight categories, including “work,”
workplace,” and “corporate culture,” and each question was
answered in two ways: four-grade multiple choice and freecomments. Note that responses from overseas employees are notincluded in the following survey results.
■ Agree. 4 points ■ Somewhat agree. 3 points■ Somewhat disagree. 2 points ■ Disagree. 1 point

I feel strongly that I want to work at my present company
for a long time
2019
10.5％

21.6％

20.2％

2020
10.5％

22.1％

18.8％

47.5％

48.5％

2.80*

2.82*

I find my present work rewarding

26.1％

2019

2020

7.0％

6.5％

14.3％

15.5％

22.9％
52.3％

55.1％

2.74*

2.80*

* Index based on a scale of 4

Suminoe Textile Group CSR Report 202032

Foundation that Supports Growth

Enhancing Governance
Establishing a Trustworthy Corporate Foundation—Fair and Sound Management

Risk Management

Intellectual Property Management Efforts
Promoting Acquisition of Intellectual Prosperity
Rights and Concealment of Trade Secrets

Risk Management
Risk Management at Offices/Factories in JapanAs for risk management at offices/factories in Japan, we strive to
identify risks, mainly the risk of material misstatement in financial
reports, based on the risks reported from Suminoe Textile Co., Ltd.
and its Group companies. The Financial Control Committee
examines the risk assessment results, which are also recognized bymembers of the management meeting. In implementing internal
control, offices/factories in Japan have reduced risks to a certain
level. We will henceforth promote the introduction of information
technology (IT) to establish a system to mitigate each risk evenfurther.

Risk Management at Overseas Subsidiaries
China SPM Automotive Textile Co., Ltd. (SPM)
In its seventh year of risk management activities, SPM is focusing on“Reinforcement of the in-house manufacturing system” this fiscal
year. To this end, the company has formed groups headed by
selected persons. Each group works to increase processing
efficiency, review and improve procured materials, increase
processing machine accuracy, or reduce process losses. SPM
selected the aforementioned theme based on the recognition thatthe company should further reduce lead times and costs, thereby
increasing its competitiveness to cope with the decline inautomobile sales volume. To achieve results steadily, the risk
management committee sets goals for the items of improvement
submitted by each group, examines monthly results, and considers
adding items if the goals are not achieved. In this way, SPM is
working to ensure good performances and achieve goals.
Indonesia PT. Suminoe Surya Techno（SST）
To achieve further risk reduction, SST strives to introduce a
production management system targeted at streamlining field workand management, which will serve as a model case for overseas
production factories. The introduction process has been affected by
the recent COVID-19 pandemic, under which the company has tohold meetings on the Web instead of having them face to faceon-site. Nevertheless, SST is working diligently to start operations of
the system in accordance with the entire schedule. After achieving
full-fledged operation and results at an early stage, the system will
be introduced at other overseas factories, thus contributing to theGroup-wide project: reengineering of the core system (ISRP).
We will continue effective and efficient risk management
focused on high-risk areas at overseas subsidiaries.

33

Suminoe Textile Group CSR Report 2020

Intellectual property rights include patents, utility model rights,
design rights, trademarks and trade secrets. Since each of them has
respective advantages and disadvantages, we are working to raiseawareness and promote understanding of intellectual property
rights among employees.
To be more specific, we hold study meetings and publish theIntellectual Property News on the in-house intranet as part of ourefforts to provide intellectual property education for employees
regarding patent applications, concealment of inventions, securing
the right of prior use, etc. to promote business operations
advantageously. In addition, at regular technical meetings held in
Nara and Osaka, we introduce related patent information and topics
on intellectual property rights. Going forward, we will makecontinuous efforts for intellectual property education. We will also
manage our intellectual property rights by wisely choosing between
the acquisition of patents, utility model rights, design rights andtrademarks and the concealment of trade secrets so that the Suminoe
Textile Group’s businesses can garner competitive advantage.

Technology
IP acquisitionand concealment

Competitive advantage ofthe Group’s businesses

Progress in Preparation of Business Continuity
Plans (BCPs*)
Pandemic Response
The Suminoe Textile’s initiatives to prevent the spread of the novel
coronavirus infection are reported in Feature 1 (p. 9-11).

Implementation of Personal Safety Confirmation Drills
In the event of a disaster, disseminating information to customers
speedily and accurately is key for us to maintain customer trust as acompany. Based on this idea, our Group has been working toestablish its business continuity plans (BCPs), focusing on collecting
such information as employees’ personal safety and damage caused
by a disaster. At its Head Office building, Suminoe Textile Co., Ltd.
has continuously held BCP-based emergency drills, in which
participants confirm the personal safety of employees following thein-house emergency contact rules, with particular emphasis on

ascertaining how to behave in an emergency.
On September 4, 2020, a personal safety confirmation drill washeld on the occasion of the Osaka 8.8 Million Drill, and theemergency headquarters were able to swiftly confirm the safety of
all employees. The drill was also held at the head office of SUMINOE
Co., Ltd.
* BCP: Stands for “Business Continuity Plan,” a plan developed to ensure that acompany can continue and/or restore business operations in an emergency,such as a disaster or an accident.

Three Projects■ Maximization of the Power of Human Resources

EnhancinggovernanceHuman
resources

Promotingcompliance

Maximization of the power

2. “Easing Workloads” Project
Promotion of Web Conferencing that Supports
Remote Working
The project team summarized the points to be improved toincrease operational efficiency that had been identified throughthe project activities in the past years and vigorously discussed
specific measures on the theme of downsizing in-house operations.
The team submitted specific measures at Management
Meetings, such as reducing in-house meetings and paper handouts
and promoting the use of in-house informal networks. In addition,
to prepare for web conferencing opportunities, explanatory
sessions were held on how to use the web conferencing system,
which had been scarcely used until then. These sessions were
implemented from the end of February, when the possibility ofworking from home was increased due to the COVID-19 outbreak.

of human resources

Easingworkloads

3. ISRP (Information System Reengineering Project)
Creating an environment where each employee
can exert his/her abilities to the fullest“Mid-career Employees” Project“Easing Workloads” Project

ISRP

1. “Mid-career Employees” Project
Activate Interaction between Human Resources acrossDepartments and Improve Their Problem-solving Skills
Activities in FY2019
It was the fourth year for the project, which was launched as a
medium- to long-term initiative. This fiscal year, the project teamdiscussed challenges to be undertaken in the future, besides theactivities currently being implemented under the Easing Workload
Project and the Information System Reengineering Project (ISRP), in
order to secure coordination between this Mid-career Employees
project and these two projects. The discussions were held byutilizing the outcomes of the activities in the past three years andreferencing the operation analysis being conducted by the ISRP.
Notably, while reviewing the past activities based on theoperation analysis, the project team found that many systems were
fragmented, which led to extra manual work and a larger number ofoperation processes to bridge the fragmented operations, thus
causing a decline in operational efficiency.
We will henceforth further expand the scope of the operation
analysis to consider reorganizing operations so as to construct a
simple and disciplined workflow step by step. We will also deepen
communication with the relevant departments to encourage them
to work out proposals for a better systematization.

Accelerate Reengineering of the Core System as aGroup-wide Effort
We are working on the reengineering of the core system as aGroup-wide effort. It had been conducted as a top-down,Group-wide project since November 2018. By enhancing
employees’ awareness that the project is a mission to be undertaken
and achieved across the Group, we will promote the project undercloser cooperation involving all Group members. Currently, ourefforts are primarily focused on the development of the production
management systems for PT. Suminoe Surya Techno (SST) and theTraffic Facilities Business Headquarters.
ISRP Basic Policy① To compile information required for management promptly
and accelerate decision-making② To submit monthly consolidated financial reports early③ To establish a global information management system④ To compare costs (production and procurement at optimal
locations) and “achieve competitive costs (strengthening
benchmarks)”⑤ To realize the best quality (enhancing traceability and BCPs)⑥ To reduce the use of paper and introduce automatic entry(paperless)⑦ To visualize the costs (sharing cost data across the Group)⑧ To study an operation model to be shared by all operation sites
and establish a global standard model⑨ To adjust operations to the standard model without
customizing the model for each operation site
⑩ To automate the sales order management system

Suminoe Textile Group CSR Report 202034

Foundation that Supports Growth

Initiatives for Society
Growth and Success of Employees—Creating a Working Environment Where Each andEvery Employee Can Demonstrate His/Her Best Performance

Respect for Human Rights

Human Resource Development

The Suminoe Textile Group will ensure a sound working environment
where no employees are harassed or discriminated against becauseof their race, beliefs, religion, nationality, physical features, etc.

We have formulated an education curriculum for the entire Group. The
curriculum comprises various programs, which are categorized intotraining by level, role training, and selective training.
At Suminoe Textile Co., Ltd. those who are in their third year or lessof employment are regarded as young employees. They are required toreceive collective training for one month after joining the Company andthen take on-the-job (OJT) training between May to September. During
the first three years after employment, young employees of Group
companies in Japan are required to take annual training sessions. After
receiving training for new recruits, they undergo collective training
designed for second- and third-year employees. The Suminoe Textile
Group companies in Japan jointly implement training programs, which
also serve as opportunities for deepening mutual exchange among
employees participating from their respective Group companies.

Respect for Diversity
The Suminoe Textile Group considers that human resources are thesource of sustainable corporate growth and that it is important to enableeach and every employee to demonstrate his/her best performance andgrow further. We place emphasis on initiatives to create a working
environment that ensures that diverse human resources can work
happily and actively, regardless of gender, age, and nationality.
■ Personnel data (Group companies in Japan)

As of the end of May each fiscal year

Item/sex/fiscal year

2019

2020

Male
FemaleMale
Average age
FemaleMale
Average years of service
FemaleMale
Number of new graduates hired
Female

1,070
483
45.9
41.4
15.5
12.2
21
10

1,210
569
46.6
41.9
15.8
12.1
19
14

Number of employeesChildcare leave, etc.
Family care leave, etc.

Suminoe Textile Group CSR Report 2020

174

125

49

Correspondence
course

110

74

36

Language training(in-person)

5

4

1

19

11

8

Total

Male

FemaleMiddle management training

12

12

0

Web management course*

7

6

1

(FY2019)■ Number of employees who used childcare/family care supporting systems

35

FemaleTraining system / Number of trainees

In June 2019, Suminoe Textile Co., Ltd. revised its internal regulations sothat employees can take nursing care leave by the hour and use support
leave to take care of their family members (for the number of days ofunused annual paid leave that expires by prescription, and this leave isretroactively effective for up to five years). The Company will continue its
endeavors to support employees in striking a balance between careerand family life and to create comfortable workplace environments.

Number of employees who took Male
childcare leave
FemaleNumber of employees who returned Maleto work after childcare leave
FemaleMale
Number of employees who
reduced working hours
FemaleNumber of employees who advanced/ Male
postponed work start/finish times
FemaleNumber of employees who took Male
family care leave
FemaleMale
Number of employees who
reduced working hours
FemaleNumber of employees who advanced/ Male
postponed work start/finish times
FemaleMale

Language training(web)

Supporting a Balance between
Career and Family Life

Item/sex/fiscal year

Selective training(for self-development)

2018

2019

0
8
0
9
0
13
0
4
0
1
0
0
0
0

0
11
0
5
0
9
0
4
4
6
0
0
0
0

Nominative/
selective
training■ Change in the incident rate* of Group companies in JapanAll Group companies inJapan (Lost-worktime
injuries & non-lostworktime injuries)(Incident rate)(FY2019)

Total

Training by level, role training,Collective
and selective training
training(for skill improvement)

To promote occupational accident prevention activities, theCentral Health and Safety Subcommittee consolidated and sharedGroup-wide “proposal instances regarding occupational health andsafety,” “on-site safety awareness-raising examples,” and otherinformation on the initiatives carried out at respective
offices/factories. However, both the number of occupational
accidents and the number of lost-worktime injuries slightly
increased. Accordingly, the incident rate rose. We also failed toachieve a rate of lost-worktime injuries of “1.0 or lower,” which we
had set as the target for fiscal 2019.
We will strengthen risk assessments and consult with eachfactory/office about measures to reduce occupational accidents bythoroughly decreasing risks and preventing the recurrence ofsimilar accidents.

8■ Number of employees taking training

Training system / Number of trainees

We had worked for many years to achieve the task of realizing
this kind of training. Many participants also commented that the
Tatsunoko Club provided them with a significant opportunity togain a new insight and hone their skills. We will continue to help
individual employees pursue learning and their personal growth.

* Started in June 2020

TopicsLaunch of TATSUNOKO CLUB
Cross-Departmental Opportunities for Knowledge
Acquisition
In October 2019, we launched the Tatsunoko Club, an in-housestudy meeting that serves as a venue for self-development to learn
a variety of basic knowledge. It is a participatory meeting forlearning mainly through discussions and exercises.
The Tatsunoko Club has brought together interested employees,
transcending the departmental boundaries, to learn about “CriticalThinking,” “Service Innovation” and other themes that are morechallenging than themes related to common daily routines. It has
been attended by young employees, managers, and overseas
employees who participate on the web. In the six months since its
launch, a total of ten Tatsunoko Club meetings were held, with nearly
50 participants at a maximum.

Topics

6

6.33
5.27
3.35

4

Publishing a Technical Data Handbook
Handing Down Knowledge and Experience to Employees
Who Will Become the Next-Generation Leaders
In March 2020, Suminoe
Techno Co., Ltd. publishedthe second edition of thehandbook for humanresource development. The
company promotes humanresource development,
aiming to foster individuals
who can think and act on
their own at the worksite andnurture professionals
equipped with the highest
level of expertise.

Occupational Health and Safety
Safety Activities
Promoting Occupational Accident Prevention Activities
At each office/factory of the Suminoe Textile Group, the Health and
Safety Committee (in the case of a small establishment, the person
in charge of health and safety) takes the lead in efforts to eradicate
occupational accidents.

2.35
2

0

Average for the industry(Lost-worktime injuries)
All Group companies inJapan (Lost-worktime
injuries)

5.99
4.98

2.00

1.32

1.33

2.00

1.06

1.15

1.02

1.20

1.20

2015

2016

2017

2018

2019

(Fiscal year)

Source: 2019 Workplace Accident Trend Survey, Ministry of Health, Labor and Welfare* Incident rate: Accident frequency, measured as the number of deaths andinjuries caused by industrial accidents per million working hours

Management of Working Hours
Promoting Measures to Correct the Issue of Long
Working Hours
This fiscal year, the First Personnel Subcommittee, established under
the CSR Promotion Committee, unified the document form forreviewing current employees’ working hours at Group companies.
Based on the results, discussions are held as to improvement
measures to reduce these hours. The Subcommittee repeatedly
makes an announcement over the P.A. system to encourage
employees to go home early after closing time and calls employees’
attention to no-overtime days. These measures have produced
positive effects. The results of the Questionnaire Survey on
Workplace Comfort also showed a higher rating for the question
regarding employee’s working hours than in the previous surveys.
As for the use of paid leave, the rate of employees using paidvacation days increased from the previous fiscal year.
■ Use of paid leave (in Group companies in Japan)

Item / Fiscal year

2018

2019

Use rate of annual paid leave (%)

42.7

56.6

Suminoe Textile Group CSR Report 202036

Foundation that Supports Growth

Initiatives for Society
Growth and Success of Employees—Creating a Working Environment Where Each andEvery Employee Can Demonstrate His/Her Best Performance

Promoting Women’s Empowerment
This section reports on the progress made in the Women’s Empowerment
Promotion Plan.

1. Planned period: June 1, 2018 – May 31, 2020
2. Targets and progress
Target 1 Ratio of new female graduates hired

To raise the rating of the questions regarding women’s empowerment, we
implemented career design training, training on coaching female subordinates, meetings for promoting exchange between female employees, etc.
However, there was no major change in the rating during the past two years.

■ New graduates hired (2018~2020)

50

50【New Women’s Empowerment Promotion Plan】

SUMINOE Co., Ltd.

Suminoe Textile Co., Ltd.
TargetResult

（％）
50

42.9

Target40

Result

35.5

25
14.8
0

Administrative Technical andand sales staff research staff

We promote initiatives to support female employees in striking a balance
between career and family life.
For details, please refer to “Supporting a Balance between Career andFamily Life” on page 35 of this CSR Report.

Target 3 Raising the rating of the questions regarding
women’s empowerment by 0.1 point in the in-house employees’
opinion survey (Questionnaire Survey on Workplace Comfort)

Suminoe Textile Co., Ltd.
50% or more for administrative and sales staff,
25% or more for technical and research staff
SUMINOE Co., Ltd.
40% or more for administrative and sales staff（％）

Target 2 Enhancing the system to enable female employees
to continue working even after going through various life events
by supporting them in balancing work and family

Administrativeand sales staff

1. Planned period: June 1, 2020 - May 31, 2022
2．
Targets: We will strive to raise the female employment rate and thepercentage of female managers by publicizing our activities to promotewomen’s empowerment at company information sessions, dispatching
female employees to external training programs, holding exchange
meetings for them, and providing training for female managers. We will
also work to encourage male employees to take childcare leave by raising
the awareness of the male employees themselves and their supervisors.

Interviews with Female Employees Who Are Actively Working

Voice
Mami Nakagawa
Product Planning Department, Product Division
RUNON CO., LTD.

Fascinated with Wallpaper
Since long ago, I have felt familiar with wallpaper because of my father’sjob. As I grew, I became interested in the history of how wallpaper hadtaken root in Japan, and so I decided to study this area in university. My
research motivated me to join RUNON. Now I am mainly engaged inwallpaper product planning and creation of sample books. Wallpaper
production begins with selecting wallpaper making companies towhich we entrust the manufacture of products in accordance with therequired functions and design expression. Since respective wallpaper
making companies use different manufacturing methods, it is important to understand each company’s characteristics. In addition, we strive
to design products, taking into account the properties related to
installation, such as ease of putting up and beautiful finish, to ensurethat we can satisfy all concerned parties, including wallpaper installers
and end-users. It is truly delightful to find such products of ours being
used in the town or on television after they have been chosen fromamong thousands of options, including products created by othercompanies. I can also feel my work rewarding if our products will last fora long time in the world. I always pay attention to the space where
wallpaper is used and to other interior elements beside the wallpaper tofind new ideas and hints that will help me develop the next design.

37

Suminoe Textile Group CSR Report 2020

Taking on New Challenges with Curiosity
As I continue to work longer for this company, I have more opportunities to take advantage of my past experience, but I may become morestability-oriented. To prevent this, I encourage myself to take on new
challenges with curiosity. In retrospect, I feel that I was happy toexperience the pleasure, discoveries and some personal growth, all ofwhich would not have been possible without continuing to work. I
believe that we can pursue a way of working suitable for ourselves inany environments by taking on challenges regardless of precedent
while addressing the aspects of work that are unsuitable for us. I willcontinue to practice positive thinking to overcome any difficult
situations without deciding that I can’t do it.
Continuing to Offer a Better Lifestyle
To create a sample book titled “HOME,” I referenced its past editions.
Viewing the past works appearing in them, I was greatly impressed
because I realized that our predecessors had passionately created theseproducts with their wishes to “have customers use the wallpaper in thismanner” and “meet the needs of the times.” Previously, a customer said “Iwant to continue using the same wallpaper for years to come,” albeit thefact that the product had been created several decades ago. I was very
pleased to hear that and felt proud to work for a company that can
produce products loved by customers for many decades. Althoughinterior styles vary with the times, people’s wish to enjoy a better lifestyleremains unchanged. While valuing the history that RUNON has woven, I
will continue my efforts to create products and sample books that are
loved and satisfying to our customers for many years.

Senior Employees Playing Active Roles

Voice

I am truly pleased to have these valuable experiences, including troubles at
the manufacturing site. Even now, I am benefiting from these experiences.

Hitoshi Nishio
Quality Assurance Department
Suminoe Textile Co., Ltd.

What approach do you take to your daily work?
I am in charge of quality auditing, maintenance and management of thequality management system for aircraft textiles, monitoring of legally
regulated chemical substances based on the Green Procurement
Guidelines, preparation and registration of SDSs, AISs and IMDSs,
compliance with the Container and Packaging Recycling Law, andsupporting other quality and environmental affairs. As for managementof chemical substances contained in our products, ignorance is inexcusable since it is a duty to be performed to comply with laws andregulations. With this recognition, I ask persons in charge of productdesign and procurement in the Company to conduct investigations into
chemical substances that have been newly added as restricted items
each year to ensure that they have a good understanding of theregulations and the latest information. My motto is to work hard ascourageously and confidently as anyone else while proactively
obtaining new information and knowledge.
What aspect of your work do you find the most worthwhile, andwhat has been your most beneficial experience while working forthe company?
I like to take on new challenges and address technological issues in
response to changes. When I can achieve positive results, I feel a sense offulfillment. I have many years of experience in working on the factory floor.
I am thankful that I have enjoyed many opportunities to deal with newtechnologies and equipment. For example, I have worked on the development of resin for electric home appliances, as well as production of ahigh-speed tenter, asphalt carpet tiles, PVC carpet tiles, APAO backing,rubber foam backing, urethane foam backing, and plant-based carpet tiles.

What has been your happiest experience while working for theCompany?
It was in 2018 when we acquired the certification for JIS Q 9100: 2016, a
quality management system standard for the aerospace industry. In the
future, the certification will be absolutely necessary for marketing interiormaterials for aircraft. Its registration is valuable because JIS Q 9100 is a quality
management system standard at the highest level, with only about 700
companies certified in Japan. It was our great pleasure that thanks tocooperation of people around us, we managed to complete the quality
manual in a short term of one year and then succeeded in obtaining thecertification.
Message to other Senior Employees
I believe that it is important to work with the first priority given to
staying healthy while periodically taking care of your body. If you are notwell, you cannot work hard.

Message
Takako Izumi
Quality Assurance Department
Suminoe Textile Co., Ltd.

Message to Mr. Nishio from a Coworker
I respect Mr. Nishio since he is powerful enough to process enormousvolumes of information, working hard to enter IMDS data and create aquality manual for aircraft textiles. He always comes up with cheerful
and invigorating topics and brightens the atmosphere of the Quality
Assurance Department. In addition, Mr. Nishio has a sweet tooth. He is
good at finding tasty sweets and new cakes, and we often receive ashare of such confections.

Introduction of a Local Employee Working at an Overseas SubsidiaryVoice
Cai hongju
Suzhou Suminoe Koide Automotive Accessories Co., Ltd. (SSK)
Joined the company on September 6, 2011

What aspect of your work do you find the most worthwhile orimportant?
I find it worthwhile to make a trial product for a new vehicle model
because I can obtain a wide variety of information. When a pre-production sample is completed, I have a feeling of achievement. I attach
importance to strengthening quality control so as not to produce
defective products.

What is the key to communicating well with Japanese staff members?
Looking up Japanese manners and customs on the Internet helps me
find common topics for conversation, making it easier to exchange withJapanese staff members.
What are your advantages over others in doing work?
I think that I take a serious attitude towards work. I am conscious of
performing work in an efficient manner.
What are your favorite places that you would recommend or you
want to visit?
I love Xishan Island, which is my home. It features beautiful landscapeand is rich in fruits. In Japan, I am interested in Osaka since I have heardthat it is a beautiful city, where the Head Office of Suminoe Textile islocated. I wish I could visit it just once.

Suminoe Textile Group CSR Report 202038

Foundation that Supports Growth

Initiatives for Society

Initiatives for the Environment

Communication with Local Communities (Social Contribution Activities)

Environmental Management—Under the Slogan of KKR+A

Each factory/office in the Suminoe Textile Group has conductedcommunity-based social contribution activities.

Local Cleanup Activities
As a good corporate citizen, we strive to revitalize the regional
community and promote environmental beatification and protection.
For example, individual factory employees have been continuously
cleaning areas near their factory, as members of their local communities.

possible from the sadness caused bybreast cancer by spreading correctknowledge about breast cancer. The
company supports this campaign
with a strong determination to act
and back up women engaged in theinterior industry and staff members of
medical, nursing care, and welfare facilities.

Kenko(Health)Kankyo(Environment)

Declaration
RecycleAmenity

Teijin Tecloth Ltd.
In May 2020, 45 employees participated in the Inazawa “Gomi Zero”(Garbage Reduction) Campaign in Spring.

Cooperation with Educational Institutions“Company Tour to Shinagawa”
The Tokyo Branch of Suminoe Textile Co., Ltd. has been providing
cooperation for a company tour program, which nearby schools
have been promoting as part of career education. In September
2019, six students visited the Tokyo Branch, where they enjoyedhands-on experience of interior designing by coordinating curtains
and rugs in the image of their teachers’ rooms. These students also
participated in a meeting to exchange views on “What do you think
about ‘working’?” and “Why do we study?” They expressed theirimpressions of this program, making such comments as “It wasinteresting to discover that individual participants have different
opinions” and “I will continue to study hard for my future career.”

STA has been constantly working on local community-based
activities. This fiscal year, in October 2019 the company held Family
Manufacturing Day for one week, inviting families of its employees
and local high-school and university students. During the factory
tour, participants were guided to the shop floor for manufacture ofautomotive textiles that are familiar to them so that they could feelthe pleasure of manufacturing while receiving explanations about
the company and products. They also enjoyed cookies and drinks
served during the event, which was held in a friendly atmosphere.
Family Manufacturing Day welcomed more than 80 guests.
Additionally, STA continuously makes donations to local elementary
schools and gives Christmas presents to local children.

We, the Suminoe Textile Group, are continuing to work on environmental conservation
activities such as interior environment improvement and utilization of recyclable materials
as well as decreasing our impact on the environment with our fundamental philosophy of“
K - Kenko (Health)”, “K- Kankyo (Environment)”, “ R - Recycle” and “A - Amenity : Comfort”

Recently deterioration of global environment has rapidly
progressing. It is a mission in common among human beings wholive on earth to make efforts to preserve and improve global
environment and hand the beautiful earth to our descendants.
Suminoe Textile Co., Ltd. well recognized this fact, will make a
comfortable and rich society with a cooperation of all the employees
positively tackling with environmental preservation activities.

Suminoe Textile Group “SUMINOE Environmental
Declaration”
The Suminoe Textile Group is promoting environmental measures
based on the seven declarations released in 1998 and revised in2009.
Declaration

We shall contribute to the improvement of

1 interior environments and realize
comfortable spaces.

Our TRIPLE FRESH deodorant treatment is applied to carpets, curtains,
wallpaper and automobile interior fabrics to deodorize unpleasantsmells, such as cigarettes, pets, household odors, and Formaldehyde,
which is believed to be behind sick building syndrome, by absorbing
and dissolving the elements causing bad smells. Other efforts being
made by us to create a comfortable and care-free living space include
an anti-allergen treatment called ALLER-BLOCK, aimed at suppressing
allergen activity, and a skin-care beauty treatment.
Declaration

2 We shall respond to the recycling society
and positively adopt recycled materials.

The Angel Tree
Christmas presents for local children

Promotion of the Pink Ribbon Campaign
RUNON Co., Ltd. is an official supporter of the Pink Ribbon
Campaign. This campaign aims to protect as many women as

39

Suminoe Textile Group CSR Report 2020

Donating stationery to a local
elementary school2on the environment.

Fundamental Environmental Philosophy
Social Contribution Activities at Suminoe Textileof America Corporation (STA)

We shall provide products that enable the

3 reduction of CO and decrease our impact

We are actively using recycled materials as part of our efforts topromote environmental conservation and the efficient use ofnatural resources. Specific products launched for that purpose
include スミトロン® (SUMITRON) polyester yarn made from recycled
PET bottles, a recycling system for carpet tiles in which used tiles
are recollected and recycled into new products, SUMICUBE® seatcushion material for railway cars boasting high recycle efficiency,
and SE Light simplified raised floor material made from PP resin
which was recycled from beer cases.

To play a part in curbing global warming and building a low-carbon
society, we will develop and provide low-carbon products based on
the Life Cycle Assessment (LCA) method. LCA is intended tocomprehensively and quantitatively evaluate the impact ofmanufacturing activities on the environment while taking into
consideration the entire cycle of products—materials, manufacturing,transportation, use, and disposal.
Declaration

4

We shall use safe/secure materials andalways consider health and the environment.

We will provide products that have passed safety rules andregulations, while refraining from supplying products that containvolatile organic compounds (VOC), believed to cause sick building
syndrome, or heavy metals, which require special attention in
disposal. Instead, we will actively use natural fabric materials such as
wool, hemp, and cotton. In addition, we will make consumer-friendly
products, such as flooring mats using Olefin film, which is known toemit a minimal amount of toxic gas during burning.
Declaration

We shall work on resource and energy

5 conservation from manufacturing to thefinished product.

We will promote the effective use of resources by reducing losses ofprimary materials, auxiliary materials, water and energy occurring in
the production process. We will also update energy-saving facilities
constantly, improve product quality, reduce the weight of products,
and simplify packaging. At the same time, we will strive to increase
the efficiency of transportation, resources utilization, and waste
disposal, thereby promoting resource and energy conservation.
Declaration

We shall promote the appropriate

6 management of environmentally hazardous
substances based on the latest information.

Tougher controls have been in place both in Japan and abroad on
the use of specific chemical substances in products. In response tothis, we will check all of our products using relevant materials andproperly manage such materials based on the Supply Chain
Management (SCM) concept. Furthermore, we will keep ourselves
abreast of the latest information on product safety.
Declaration

7 We shall present and provide products thatare conscious of the environment.

Our environmental consideration in manufacturing will be given not
only to external product appearance and functions but also to otherfactors, such as minimizing resources and energy consumption in theprocess of production, making product recycling easier, manufacturing
longer-life products and optimizing waste disposal. We will proposeand deliver products based on such an “eco-design concept.”

Suminoe Textile Group CSR Report 202040

Foundation that Supports Growth

Initiatives for the Environment
Environmental Management—Under the Slogan of KKR+A

Fifth Medium-Term Activity Goals —Eco Challenge 2020—
Guideline on Activity

Environmental commitment
In carrying out environmental conservation activities

1 We will positively promote energy-saving, resource-saving, and recycling with a consideration not to
contaminate environment in all of our business activities.

2 We will try to preserve environment through products’ life cycle from production, sales to disposal bydeveloping environment-friendly technology and products.
① Development of technology for energy-saving and resource-saving② Development of recycling technology and recycling system③ Development of products and technology to replace materials which would put less load on environmentand have more safety④ Development of product which could improve environment and contribute to health and comfort

3 We will try to live together with community through close communication and all employees will start action

Business activities undertaken by the Suminoe Textile Group are deeply connected to the environment. This holds true to our daily
operations, as well as to the entire lifecycle of our products-from product development and design, material procurement, production,
sales, distribution, consumption, disposal and recycling.
The Suminoe Textile Group is working on assessing and reducing the impact on the environment from all of our business activities
and our products throughout their lifecycle. We are committed to manufacturing environmentally friendly products. One example isactive use of recycled materials, including polyvinyl chloride powder recycled from used carpet tiles and raw cotton and polyester pellets
recycled from PET bottles. In conducting CSR activities, we also focus on environmental conservation, and Group-wide efforts areunderway to achieve the goals set under Eco Challenge 2020.

Eco Challenge 2020 (Fifth Medium-Term Activity Goals)
Eco Challenge 2020 (Fifth Mid-Term Activity Goals) was formulated as a set of goals on environmental protection. Its duration was two
years from fiscal 2018 to 2019, during which we promoted environmental activities.
■ Affiliates covered by Eco Challenge 2020

Suminoe Textile Co., Ltd.

from whatever one can do.

4 We will try to maintain internal system to promote environmental protection and enhance environmental
consciousness of all employees.

Automotive Textile & Traffic Facilities Business Headquarters

Interior Business Headquarters

Suminoe Teijin Techno Co., Ltd.
Teijin Tecloth Ltd.
Owari Seisen Co., Ltd. Head Office Factory
Owari Seisen Co., Ltd. Ishikawa Factory
Suminoe Textile of America Corporation
Bondtex, Inc.
Suminoe Textile de Mexico, S.A. de C.V.
SPM Automotive Textile Co., Ltd.
Suzhou Suminoe Koide Automotive Accessories Co., Ltd.
T.C.H. Suminoe Co., Ltd.
Suminoe Teijin Techno Krishna India Pvt. Ltd.

SUMINOE Co., Ltd.
RUNON Co., Ltd.
Suminoe Logistics Co., Ltd.
Kyoto Traditional Art andCraft Factory
TANGO TEXTILE Co., Ltd.

Environmental Protection Promotion System
The Environmental Promotion Subcommittee was
set up within the CSR Promotion Committee.
Environmental measures drawn up and finalized by
the subcommittee are implemented in all divisions
throughout the Group.

CSR Promotion Committee

Administration
Headquarters

Working GroupManagement Meeting
President

CSR & Internal
Control Council

Suminoe Textile

Environmental
Promotion
Subcommittee

Automotive Textile
Business Headquarters

Environmental
Management WG

Traffic Facilities
Business Headquarters

Office Management
WG

Functional Materials
Business Headquarters
Interior Business
Headquarters
Technical and Production
Engineering Headquarters

Introduction of environmental management system
The Nara Factory obtained ISO 14001 certification in fiscal 2000, making it the first among the Group to be awarded certification on
environmental management. To date, five factories in Japan have obtained ISO 14001 certification, and one factory Eco Action 21
certification.
ISO14001: 2015

Eco Action 21: 2009

Nara Factory, Shiga Factory

Teijin Tecloth Ltd.

Owari Seisen Co.,Ltd.:
Head Office Factory, Ishikawa Factory

TANGO TEXTILE Co., Ltd.

Screening andregistration agency

Japanese Standards Association

Japan Quality Assurance
Organization

Japan Quality Assurance
Organization

Institute for Promoting Sustainable
Societies

Registration number

JSAE 235

JQA-EM1519

JQA-EM3114

0009522

Registration date

May 2000

April 2001

March 2003

July 2013

Registration renewal

6th renewal completed (May 2018)

6th renewal completed (April 2019)

5th renewal completed (July 2017)

3rd renewal completed (July 2019)

Functional Materials
Business Headquarters

Technical and Production
Engineering Headquarters

Suzhou Suminoe Textiles
Co., Ltd.

Suminoe Techno Co., Ltd.
Nara Factory
Suminoe Techno Co., Ltd.
Shiga Factory
Kansai Laboratory Co., Ltd.
Technical Center

Domestic factories: Subject to meeting numerical targets on the use of recycled materials, the amount of industrial waste generated (the recycling rate and the rate of industrial waste
disposed of at final disposal sites) and the amount of PRTR-designated substances handled
Overseas factories: Subject to meeting numerical targets only regarding energy consumption■ Period: Fiscal

2018–2019 (two-year plan; data collection lasting between June 2018 and May 2020)■ Activity Goals and Fiscal 2019 Results○: AttainedWork areas

Base FY△: Not attained at some factories

Final numerical targets

×: Not attained

Evaluation

2017

2% reduction (Basic unit)○

1

Prevention of global
warming

Reduction of energy consumption
Reduction of fuel consumed by company-owned vehicles

2017

2% reduction (Basic unit)△

2

Resources conservation

Increased utilization rate of recycled material

2017

2% improvement△

Reduction of industrial waste

2017

2% reduction (Basic unit)△

Increase of recycling rateー

65% or more△

Reduction of waste disposal rate via land reclamationー

10% or less

△

2017

2% reduction (Basic unit)○

3

3Rs regarding wastematerial

4

Prevention ofenvironmental pollution

Reduction of air pollution (reduction of NOx emissions)
Reduction of emissions reported under PRTR system

2017

2% reduction (Basic unit)△

5

Promotion of Green Activities

Improvement of green stationery purchase rateー

95% or more△

6

Promotion of LCA assessment for productsー

12 items under LCA○

7

Promotion of development of environment-friendly technologiesー

2 cases○8

Promotion of development of environment-friendly productsー

6 cases○9

Promotion of biodiversity preservation in business activities

ー

―

ー

10

Consolidation of data on environmental impact of overseas factories and reduction of such impactーCompilation of data for all overseas factories○

Basic unit: Consolidated sales used as a denominator for calculation
Conversion coefficient: The amount of NOx emissions is calculated based on a conversion coefficient used in the 2002 edition of Eco Action 21.

41

Suminoe Textile Group CSR Report 2020

Suminoe Textile Group CSR Report 202042

Foundation that Supports Growth

Initiatives for the Environment
Eco Challenge 2020 (Fiscal 2018 Results)
Eco Challenge 2020 uses the fiscal 2017 data as the standard.
In fiscal 2019, we achieved targets in work areas related to reduction of energy consumption, prevention of environmental pollution,
development of environment-friendly technologies and products, and compilation of environmental data for overseas factories. Also attaining
the targets for promotion of LCA assessments for products, we accomplished these targets for the entire period of the Eco Challenge 2020.

Prevention of global warming
Reduction of Energy Consumption[Reference data] Reduction of CO2 Emissions

We assess the results of our energy-saving activities based on thecalorie equivalent of our energy consumption*. Eight companies
have been included in the “overseas” category since the base year
fiscal 2017 (five for 2016 or before).

We assess the impact of our corporate activities on global
warming based on CO2 emissions*. Both CO2 emissions and basic
unit have decreased compared to 2017 (overseas: 8 companies
for 2017 onwards, 5 companies for 2016 or before).

* Unit of calorie equivalent of energy consumption: GJ (gigajoule)■

Change in calorie equivalent of energy consumption[including overseas consumption]
Total caloric value(1,000 GJ)

Overseas

Domestic■
Basic unit
(GJ/¥1 million)

Basic unit

1,800
1,500
1,200

15
12.3

11.2

10.9
1,202

1,090

11.7
1,158

1,046

11.6

12

1,059

9

391

502

488

438

3

655

670

700

670

622
0

0

2015

2016

2017

2018

We are striving to reduce fuel consumption by company-owned
vehicles by promoting eco-driving and adopting a policy ofactively switching to fuel-effective vehicles. In fiscal 2019, wereduced the consumption but failed to achieve the reduction
target in terms of basic unit.
Change in fuel consumed by company-owned vehicles
Consumption of gasoline, gas oil

Basic unit

60

62.4

40

23.9

20

0.613

0.647

0.7

0.628
0.6

66.9

58.9
22.4

28.6

63.8
27.7

57.4

0.5

25.2

0.4
0.3

38.5

36.5

38.3

36.1

32.2

2015

2016

2017

2018

2019 (Fiscal year)

0

0.2

Resources conservation
Increased Utilization Rate of Recycled Materials
We are actively using recycled materials for productmanufacturing to promote savings in resources.
Rate of use of recycled materials

（％）

50

80

42.4
38.2

35.2

34.7

Rate of waste material buried at final disposal sites

67.9

61.1

60

65.9

56.4

30

3,000
2,000

Recycling rate

65.5

40

35.6

40
20

3,434

3,670

3,394

3,511

3,878

20

10

0

0

2015

2016

2017

2018

11.4

11.7

10.9

2015

2016

2017

19.0

16.1

2018

2019 (Fiscal year)

0

2019 (Fiscal year)

Prevention of environmental pollution
Reduction of air pollution (NOx emissions)

Reduction in the Amount of PRTR DesignatedSubstances Handled

Substances that may pollute air include NOx, SOx, and other fineparticles. NOx is used here as an example to explain the situationof air pollution. The amount of NOx emissions is calculated basedon the emission coefficient used in the 2002 edition of Eco Action
21 for facilities where no emission-cutting measures were taken.

We are in the process of replacing chemical substances whose
use will be restricted by regulations with safer alternatives.

Reduction of NOx emissions

Emissions(kg)

60,00050,000Emissions

0.357■
Basic unit(kg/¥1 million)

Basic unit

0.349

0.371

0.357

20,00033,49836,28435,20932,178

15.4

15.2

14.9

13.6

13.0

2,000

1,000
0.1

10,000

15
10

1,500

0.2

34,815

Basic unit(kg/¥1 million)

Basic unit

20

2,500
0.3

30,000Emissions

3,000

0.4

40,000

Reduction in amount of PRTR-designated substances

Emissions
(t)

0.352

5

1,453

1,464

1,275

1,341

1,413

2015

2016

2017

2018

2019 (Fiscal year)

500
0

0

2015

（％）

2016

2017

2018

0

0

2019 (Fiscal year)

50

37.9

37.0

37.3

37.7

37.3

5.4

5.1

4.9

5.2

Promotion of Green Activities
Improvement of Green Stationery Procurement
Rate

6
20
4

522

503

481

475

2

10
0

0

0

43

4,000

(kg/¥1 million)

Basic unit

30

6.2

2015

Amount of industrial waste generated

5,000

■

40

603

6,000

1,000

400
200

(t)

Basic unit(t/¥1 million)

Basic unit

0.683

0.640

8

600

We are striving to reduce industrial waste generation by minimizing unused materials for our products, by not manufacturing productsthat do not pass quality standards, and by using resources effectively. In fiscal 2019, due to test runs of the newly installed manufacturing
equipment, the amount of industrial waste increased, which affected the results of each target item.
■ Changes in amount of industrial waste generated■ Changes in recycling rate and rate of waste material buriedat final disposal sites
Basic unit
Amount of industrial waste generated

10

1,000
800

Domestic

Reduction of industrial waste generated
Increasing the Recycling Rate and Reducing the Waste Disposal Rate via Land Reclamation

0.8

100

■

Basic unit(L/¥1 million)

Consumption of gasoline, gas oil(1,000 L)

1,200

Overseas1202019 (Fiscal year)

Reduction of Fuel Consumed by Company-Owned
Vehicles■Emissions(1,000 t)

6

600
300

Change in CO2 emissions [including overseas consumption]

80

900

420

* For domestic factories, the amount of CO2 emissions is calculated based on a conversion
coefficient set in accordance with the law to promote measures against global warming.
For overseas factories, the calculation is based on a conversion coefficient set for eachcountry in the 2007 GHG protocol.

3Rs regarding waste material

2016

Suminoe Textile Group CSR Report 2020

2017

2018

2019 (Fiscal year)

2015

2016

2017

2018

2019

(Fiscal year)

We are actively promoting purchases of environmentallyfriendly office equipment and supplies to reduce their impact
on the environment throughout their entire life cycle, fromcollection of materials to disposal.

■

Change of rate of buying eco-friendly office equipment

（％）

100

91.4

89.7

87.6

85.2

86.2

2016

2017

2018

2019

80
0

2015

(Fiscal year)

Suminoe Textile Group CSR Report 2020

44

Foundation that Supports GrowthcolumnInitiatives for the Environment

Our Corporate Messages published in the Monthly Magazine “Wedge”

Eco Challenge 2020 (Fiscal 2019 Results)

Promotion of LCA* Assessment
for Products
Promotion of LCA Assessment for Products
We have established an LCA system for products and haveconducted in-house assessments since fiscal 2015.
In fiscal 2019, we carried out LCA assessments for 49 items,
attaining the target set under Eco Challenge 2020.
* LCA: Stands for lifecycle assessment. LCA is a method toquantitatively evaluate the resources used to produce a
product at each stage of its lifecycle—from raw material
procurement, manufacturing, distribution and use todisposal— as well as its load on the environment, and also
the potential environmental impact that the product andresources may have on the Earth and ecosystems.

Promotion of Development ofEnvironment-Friendly
Technologies and Products
Promotion of Development ofEnvironment-Friendly Technologies
クインテック® (QUINTECH) multi-functional processing technology

featuring five functions that improve indoor environments

トリプルフレッシュ®デオ (TRIPLE FRESH DEO) (having deodorant,

antibacterial, anti-virus and antiallergen functions) plus
anti-mite function

Promotion of Development ofEnvironment-Friendly Products
1 New series of ECOS® Carpet Tiles—LP-2000N, LP-3100

and iD-7100— which use solution-dyed nylon yarn thathas less environmental impact
2 Revamp of the olefin flooring material “Hokkarari Floor”
for TOTO’s bathroom units
3 “空気を洗う壁紙® (Air Cleaning Wallcoverings) Stretch”
featuring deodorant, antibacterial and anti-cracking
properties and a weight reduction of 20% as comparedwith conventional products

Consolidation of Data on
Environmental Impact ofOverseas Factories andReduction of Such Impact
Compilation of Data for Overseas Factories
In fiscal 2019, environment-related data of two overseas
factories* were newly added to the compilation.
* PT. Suminoe Surya Techno (Indonesia)
Suminoe Koide (Thailand) Co., Ltd. (Thailand)

45

Suminoe Textile Group CSR Report 2020

Environmental Activities for
Preserving Biodiversity in
Business Operations

To let more people know about the Suminoe Textile Group’s businesses, we published our corporate messages in serial formin the monthly magazine “Wedge” (between the March 2020 issue and the February 2021 issue). Looking back on our historyof over 130 years, we designed the pages bearing these messages, with motifs borrowed from some of the Group’s past
projects by using the textiles and materials actually used in these projects. Our corporate messages at the time of
publishment have been posted in the News Release section of the Company’s website.

Factories run by the Suminoe Textile Group have been
undertaking various unique activities since fiscal 2013 toprotect biodiversity based on the environment protection
guidelines the Group formulated in fiscal 2011.

Activity Policy
1 Reduction of impact on biodiversity from businessactivities
Monitoring the situation on biodiversity around factories
and their vicinity
Using locally-grown native species, not nonnative species,
for tree planting
Periodically cleaning areas near factories and improving
environmental conditions there by weeding out grass
Checking sustainability when biological resources areused as product material
Promoting development of products with recycledmaterial and building a recycling system to manufacture such products
Incorporating activities for biodiversity preservation into
an environmental management system
Promoting new measures that are possible at eachfactory for preservation of biodiversity

March issue“modeS” curtain series
from SUMINOE Co., Ltd.

April issue
Seat covering for Green Cars of
the 0-series Shinkansen bullet train

May issue
Red carpet for
the National Diet Building

June issue
Automotive seat coverings

August issue
Hotel carpet

October issue
Carpet for “Asahi no Ma”
of the State Guest House, Akasaka Palace

2 Promoting new measures that are possible at eachfactory for preservation of biodiversity Activities toseek suppliers’ cooperation in reducing impact on
biodiversity across the entire supply chain
Seeking cooperation from suppliers in observing green
purchase guidelines to promote our efforts to preserve
biodiversity
3 Social contribution activities

Supporting groups engaging in forestry preservation
activities
Supporting green charity activities

Activity Results[Nara Factory of Suminoe Textile Co., Ltd.]The factory has participated in activities of the Ando
Ouyu-Kai, an association aimed at developing a cherrytree-lined promenade in the area along the Okazaki Riverflowing south of the factory, and has taken care of the trees.
[Shiga Factory of Suminoe Techno Co., Ltd.]The factory has been working on propagating the Sasayuri
lily, known as the flower of Koka City and a symbol of theharmonious coexistence of people and nature, on thefactory premises.
[Factory at the head office of Owari Seisen Co., Ltd.]The factory has been supporting the project to revive
fireflies along the Kiso River and in other wetland areas, asa member of the Ichinomiya Heisei Firefly Association.

* Each advertisement was first published in the issue that is indicated under the advertisement.

Monthly magazine
Wedge is a monthly magazine that is available in Green Cars of the Tokaido and Sanyo Shinkansen lines. It is also sold at bookstoresand station stands. Its publisher, Wedge Inc., upholds the following corporate philosophy: to contribute to society by helping
resolve various issues both in Japan and overseas.

Editorial Postscript
Thank you very much for reading our CSR Report 2020.
We organized the information about the Group’s ideas and projects related to CSR activities and expressed them in an easy-to-understand manner. While
we receive growing demands for tackling international social challenges, we are determined to continue steady implementation of CSR activities tobecome a corporate group to be trusted. In this respect, we would be grateful if you could give us your candid opinions and comments about the Group’s
CSR activities by answering the questionnaire, for future reference.
CSR Report Editorial Team

Suminoe Textile Group CSR Report 202046