Suminoe Textile GroupC SR Repor t
2021

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/

The paper used for thispublication is certified as
being made from “timberfrom responsibly managed
forests.”

This publication was
printed using vegetableoil ink that has lessenvironmental impact.

The waterless printing techniqueused for this publication requires
no dampening solution andprevents the release of harmful
liquid waste during the printing
process.

This publication uses
easy-to-read fonts
designed based on the
Universal Design (UD)concept.

Editorial Policy and Contents

Offering Amenity Spaces and Enriched Lifestyles
For over 138 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.

Contents
Editorial Policy and Contents
Businesses and Global Operation Sites of
the Suminoe Textile GroupTop Message
Medium- to Long-term Management Targets“SUMINOE GROUP WAY 2022-2024-2027”

1

Corporate Governance1

Period Covered

Referenced Guidelines

Fiscal year 2020 (From June 2020 to May 2021)(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 2021
(The next report will be published in December 2022.)

Suminoe Textile Group CSR Report 2021

Feature1 Dialogue: Suminoe Textile Supports the “Last Touches”
2 Global Expansion and Introduction of an Overseas Affiliate

Ensuring Compliance

29

5

Risk Management

31

Initiatives for Society
6

Personal Growth of Employees

33

Promotion of Occupational Health and Safety
in the Suminoe Textile Group35

9Personal Success of Employees

37

13Communication with Local Communities(Social Contribution Activities)

39

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

27

3

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.

Enhancing Governance

15

Foundation That Supports Growth
Initiatives for CSR
Corporate Philosophy and CSR System of
the Suminoe Textile Group23

Fiscal 2020 Results of CSR Activities

25

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

40

Eco Challenge 2021

42

Eco Challenge 2021 (Fiscal 2020 Results)

43

Column / Editorial Postscript

46

Suminoe Textile Group CSR Report 2021

2

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 Fittings

Automotive Textiles

Traffic Facilities

Functional Materials

Arts and Crafts Textiles

China

SPM Automotive Textile Co., Ltd.
Guangzhou

Number of employees(all Group companies)

2,724

United States

Suminoe Teijin Techno Krishna
India Pvt. Ltd.

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

employees

27

Suminoe Textile of America
Corporation

Bondtex, Inc.

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

companies

Overseas operation sites

14 7
sites inbillion yen

Major Group companies in Japan (head offices)❶ SUMINOE Co., Ltd. (Osaka City)

countries

Planning and sales of interior products, mainly
wallpapers

5 Kyoto Traditional Art and Craft Factory (Kyoto City)■(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)■
8 West Tokyo Sales Office (Isehara City, Kanagawa Prefecture)■
9 Nagoya Sales Office (Nagoya City, Aichi Prefecture)■❹ Suminoe Works Co., Ltd. (Tokyo)
Installation of interior products❿ Teijin Tecloth Ltd. (Inazawa City, Aichi Prefecture)❺ Kansai Laboratory Co., Ltd.

Production and sales of automotive seat covering
materials, chair upholstery fabrics, and clothing
textiles10 Hiroshima Sales Office (Hiroshima City)■(Matsubara City, Osaka Prefecture)
Testing and inspection services(Fukuoka City)

Thailand❾ TANGO TEXTILE Co., Ltd.

❸ Suminoe Logistics Co., Ltd.

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

11 Fukuoka Sales Office■Vietnam

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

4 Shiga Factory (Koka City, Shiga Prefecture)■％❽ Suminoe Techno Co., Ltd.

Planning and sales of interior products, mainly
carpets and curtains

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

29.1

%

Offices/Factories of Suminoe Textile Co., Ltd.
1 Head Office (Osaka City)■
2 Tokyo Branch (Tokyo)■

Overseas sales ratio

Equity ratio

33.5

MexicoNumber ofGroup companies

Capital9.5

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

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

India

Indonesia⓫ Owari Seisen Co., Ltd.

❻ Suminoe Teijin Techno Co., Ltd.

Dyeing and finishing of automotive seat covering
materials and interior fabrics
Head Office (Ichinomiya City, Aichi Prefecture)
Ishikawa Factory (Nomi City, Ishikawa Prefecture)(Osaka City)
Production and sales of automotive textiles,
mainly seat covering materials❼ Marunaka Souei Co., Ltd. (Osaka City)⓬ Sewing Hyogo Co., Ltd.

Wholesale of traffic facilities textiles(Tamba City, Hyogo Prefecture)
Sewing and processing of fabric products⓭ INTEC CO., LTD. (Osaka City)
Suminoe Koide (Thailand)Co., Ltd.

Suminoe Textile Vietnam
Co., Ltd.

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

Development, design and sales of test equipment
and measuring instruments

PT. Suminoe Surya Techno

PT. Sinar Suminoe Indonesia⓮ CPO Co., Ltd. (Tokyo)
Interior design, construction and supervision,
manufacture and sale of custom-made furniture

Corporate Summary (as of May 31, 2021)

Changes in the number of employees

Name of Company Suminoe Textile Co., Ltd.

(Persons)
3,000

Head Office

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

2,850

2,830

2,899

2,822

(Unit: Million of yen)

Net sales breakdown (fiscal year ended May 31, 2021)
Functional Materials

3,130

2,724

2,500

Founded

1883

2,000

Incorporated

December 25, 1913
Suminoe Textile Joint-Stock Company

1,500

1,324

1,346

1,262

445
0.6%

3.9%
1,338

OthersAsia

12,57915.8%

Others140…Net sales…Operating income

3

December 26, 1930
Suminoe Textile Co., Ltd.

Capital9,554,000,000 yen

Number of
Employees

253 (Consolidated group companies: 2,724 employees)

Suminoe Textile Group CSR Report 2021

98,61791,512
3,118

0.2%

1,049

1,169
2019/5
By businesssegment

1,492

500

1,526

1,553

1,560

1,555

0
2018/5

OverseasJapan

2019/52020/52021/5(FY)

Automotive Textiles andTraffic Facilities

45,10256.6%

2020/52021/5 (FY)

By region

Net sales

2017/579,702

1,557

1,000

Organizational
Change(Unit: Million of yen)

Consolidated financial results

Interior Fittings North and Central
America

Japan

38.9%

70.9%

31,024 10,448
13.1%

56,533Operating income
Ordinary income
ROE

2019/52020/5ResultResultResult98,617
3,118
2,956

91,512
1,557
1,323
0.5%

79,702
1,049
1,211
1.5%

1.4%

2021/5

Suminoe Textile Group CSR Report 2021

4

Top Message

Medium- to Long-term Management Targets “SUMINOE GROUP WAY 2022-2024-2027”

The Suminoe Textile Group Aims to Achieve
Both Sustainable Growth and Contribution to
Realizing a Sustainable Society

Focusing on our medium- and long-term “ideal corporate
image,” we have established our policy through the fiscal
year ending May 2027.
Suminoe Textile Co., Ltd. formulated “SUMINOE GROUP WAY 2022-2024-2027,” Medium- to Long-term Management Targets (SGW),
toward which we began to work in June 2021. We will combine the strengths of all employees of the Group companies to achieve thesetargets by increasing sales of products that meet social needs and promoting global management based on the ESG management that
the Group has focused on to date.

2022-2024-2027
Management
policyIntroduction

Create workplaces for employee happiness.

●

Establish better business models to globally grow as a company requiredby society.

●Gain sound profits to invest in future growth.

●Strengthen ESG management.

We will develop human resources who can not only accomplish

I am Teppei Nagata, who recently assumed the post of President.

tasks at hand but also achieve reform and personal growth from

I would like to offer our deepest condolences to those whose

a broad perspective. At the same time, we will develop a safe

lives were taken away by complications caused by the noveland secure work environment and establish a working systemcoronavirus (COVID-19). I would also like to express our sincerest

that accommodates diverse work styles.

Expand sales and build a foundation for the growth.
Improve financial structure. ● Create workplaces for employee happiness.
● Share the Company’s vision with employees.
●●

Targets

sympathies to those suffering from COVID-19 and their families,

Share the Company’s vision with employees.

by the pandemic.

To ensure that the entire Group will work toward the same
vision, we will facilitate communication between management

Initiatives to Achieve the Medium- to
Long-term Management Targets

Reduce CO2 emissions, and develop
and distribute products forenvironmental measures.
● Strengthen cost competitiveness.
● Develop highly unique products.
● Expand sales of products with
antibacterial and antivirus effects.

Safe and secure work environment
Participation and cultivation ofdiverse human resources● Enhance governance.
● Improve work efficiency using coresystems.
● Improve corporate brand value.

●

as well as to all those whose daily livelihoods have been affected

Challenges

and employees, aiming to become a more open organization.

●●

Further reduce CO2 emissions.

The Suminoe Textile Group announced “SUMINOE GROUP WAY

Our product-related efforts to reduce CO2 emissions include2022-2024-2027,” new Medium- to Long-term Management

increasing sales of the ECOS® series of recycled carpet tiles

Targets (hereinafter SGW) which came into force in June 2021, in

produced using horizontal recycling, transitioning fromorder to move on to the next growth stage, looking ahead to thepiece-dyed yarn to solution-dyed yarn, and increasing the use

post COVID-19 era. The SGW has set six-year financial andof recycled fibers. Also in our business activities, we will

non-financial targets as well as a three-year consolidated

contribute to CO2 emissions reduction by improving logistics

income and expenditure plan. We will strive to steadily gain

systems and unifying the production bases.

SUMINOE GROUP WAY POLICY

2022-2024-2027● Establish better business models to globally grow as a company required by society.

Management
policysound profits while further strengthening ESG managementthat the Group has promoted so far. In so doing, we aim to be a

Enhance Governance.

company that contributes to the realization of a sustainable

We aim to be a company trusted in society by further promoting

society by implementing the following initiatives.

our initiatives and by complying with laws and regulations andAlthough the environment surrounding the Suminoe Textile
Group has changed many times, we have grown by responding

technologies that we have accumulated over the years andappropriately to each of these changes. Even during thecreate technological innovation to reinforce the development

COVID-19 pandemic, which has caused an uncertain future, weof our Group’s proprietary processing technologies andwill continue all-out efforts to enhance our corporate value andunrivaled products.

contribute to the achievement of a sustainable, decarbonizedNon-financial targets

Expand sales and build a foundation for the growth.
●

We will further promote our environmentally friendly● Strengthen ESG management.

Financial targets

corporate ethics.

Expand sales and build a foundation for thegrowth.

● Gain sound profits to invest in future growth.

Operating margin: 5% or more ● Investment plan for building a foundation for growth● Develop and promote the sale of products for environmental measures.

Improve financial structure.
●

Improve D/E ratio.

●

Increase inventory turnover.

●Effective use of treasury stock

Create workplaces for employee happiness.
●

Create healthier work environment.

●

Cultivate human resources.

●

Effectively use diverse human resources.

Share the Company’s vision with employees.

society.

Improve financial structure.
by the fiscal year ending May 2024 so as to enhance ourcorporate value.

Consolidated net sales:

December 2021

We will improve the debt-equity (D/E) ratio by around 0.5 times

Consolidated net sales:

79.7 billion yen

President
Suminoe Textile Co., Ltd.

FY2021

Consolidated net sales:

100 billion yen or more

93.4 billion yen
FY2024FY2027

Teppei Nagata

5

Suminoe Textile Group CSR Report 2021

Suminoe Textile Group CSR Report 2021

6

Medium- to Long-term Management Targets “SUMINOE GROUP WAY 2022-2024-2027”●

Overview of the Three-year Consolidated Plan (Fiscal years ending May 2022 to 2024)
With ESG management in mind, the Group will develop and promote the sale of products that contribute to a decarbonized society andproducts with antibacterial and antivirus effects in each business segment. The Group will also endeavor to improve productivity andcompetitiveness, aiming at further efficiency by strengthening the management base and at the same time reorganizing offices throughrestructuring of core systems.

Development of Eco-friendly Products

We will contribute to a decarbonized society by accelerating research and development under the development philosophy of“K (Kenko meaning Health in Japanese), K (Kankyo meaning Environment), Recycle, plus A (Amenity).”

Examples of Eco-friendly Products that Contribute to the Reduction of CO2 Emissions
ECOS®, carpet tiles under the horizontal recycling system

Three-year Consolidated Income and Expenditure Plan

Launched in 2011■

Achieved 84% at the maximum,
which is the highest level of recycledmaterials used in the industry, and
43% at the maximum in the
reduction rate of CO2 emissions.

(Million yen)2022-2024-2027
Three-year Consolidated Income and Expenditure Plan
(Fiscal years ending May 2022 to 2024)

100,000■

6,000

93,49090,36090,00086,480

3,300

4,000

3,530

2,520 2,730
80,0001,960

79,702
1,049

1,160 1,350

1,211

1,280
620

409
70,0000

FY ended May 2021
Net sales (left axis)

FY ending May 2022
(Plan at the time of announcement)

Operating income (right axis)

FY ending May 2023

Ordinary income (right axis)

FY ending May 2024

FY ended May 2021

Interior Fittings

Net sales

Three-year Consolidated Income and Expenditure Plan (Fiscal years ending May 2022 to 2024)
FY ending May 2022
(Plan at the time of announcement)

FY ending May 2023

FY ending May 2024

31,02433,75034,43035,120

579

400

450

520

Operating income
Automotive Textiles andTraffic Facilities

Net sales

45,102

48,98051,91054,170Operating income

2,102

2,800

3,590

4,170

Functional Materials

Net sales

3,130

3,410

3,680

3,840

-87

-140

150

190

Operating income

Investment Plan
The Company will make investments equivalent to 10 billion yen in total for the expansion of business, restructuring of core systems andthe reorganization of offices during the three years from the fiscal year ending May 2022 to the fiscal year ending May 2024.

Initiatives for ESG

Initiatives for Reduction of CO2 Emissions

We have focused on initiatives for the reduction of CO2 emissions through products manufactured by the Group since we developed
スミトロン® (SUMITRON) in 1990.
In June 2021, we established the “Visualization Committee on the Reduction of CO2 emissions” to further enhance the reduction of
CO2 emissions and the lowering of environmental load.
Volume of contribution to the reduction of CO2 emissions through products
Circulation-type recycling of carpet tiles■ Increase the use of recycled fibers, such as スミトロン® (SUMITRON).
■ Increase the use of yarn recycled from PET and recycled resin materials.
■

ECOS®, carpet tiles under the horizontal recycling system

Volume of contribution to the reductionof CO2 emissions over 10 years
Approx. 220,000 tons
Approx.

Reduction of CO2 emissions in business activities

90,000 tons

Improve logistics systems and unify the production bases.
Improve energy efficiency and change fuels used.
■ Working style reforms

FYs ended
FYs ending
May 2012 to 2021 May 2022 to 2031■■

7

Suminoe Textile Group CSR Report 2021

Approximately 220,000 tons of CO2 are to be reduced over the
next decade.

■Useable for a long periodof time due to excellent
weather- andheat-resistance properties.

■

Solution-dyed yarn is used for reducing environmental load.

SocialGovernanceInitiatives for employees●

Improve workplaces for more safety and security.
● Diversity and inclusion● Participation and cultivation of human resources● Omnidirectional communication
Social contribution activities

●

●

●
●

Contribution in cases of disasters
Support and donation for poverty and starvation

Restructure the core systems.
Strengthen the managerial decision making by outside directors.
● Promote interactive in-house communication through top management’s
frequent visits to workplaces.
Continue to conduct compliance training.
Further disseminate the Corporate Ethics Hotline.
● Strengthen global risk management.
● BCP action plan●●

Initiatives to Be Enhanced during the Target Period

Environment●■

Polyester chips recycledfrom PET bottles are usedas material by 50% or
more.

Traditionally, the piece-dyeing method, which required large amounts of water and electricity as well as dyeing effluent treatment, had been applied to dye
pile yarn used for the surface of carpets. We have now shifted to using solution-dyed yarn (pigmented at the spinning stage), which reduces CO2 emissions,requiring less water and energy and with no effluent problem in the production process.

(Million yen)

Actual results

Approximately 90,000 tons of
CO2 were reduced over the past decade.

■Transition to Solution-Dyed Yarn

Profit attributable to owners of parent (right axis)

Numerical Targets by Business Segment

■

2,000

スミトロン® (SUMITRON)

Reorganization of Nara Factory

Enhancing Space Design BusinessWe are working to reorganize
the Nara Factory in order toseek higher efficiency by reorganizing the arrangement at
the factory and to strengthen
the cooperation between theTechnical Center of Suminoe
Textile and the Development
Team of Suminoe Techno Co.,Ltd.
The reorganization is expected to produce the following effects: productivity improvement by selling off unnecessary production facilities andconcentrating the production facilities; improvement in efficiency of supply
chains by increasing logistics warehouses and reducing the cost paid to external warehouses; enhancement of research and development through theconstruction of a new R&D building that will increase synergy effects between the business divisions and accelerate the development of new products; and reduction of environmental load by removing dyeing facilities anda wastewater treatment plant.

We will materialize our customer’s requests at ahigher level by expanding
the business domain to theplanning and design of thewhole “space,” not limiting
it to production, sale andproposition of productsthat color the “surface.”
Synergy effects have gradually become apparent since CPO Co.,
Ltd., which has in-depth expertise and excellent know-how concerning
store design, joined the Group in 2020. Going forward, we will expand
our business domains to not only stores in which CPO has strength but
also nurseries, schools and medical facilities.

Suminoe Textile Group CSR Report 2021

8

Feature 1 Dialogue Suminoe Textile Supports the “Last Touches”

Teppei Nagata
Suminoe Textile Group

Mr. Ken Shibusawa
Shibusawa and Company, Inc.
Commons Asset Management, Inc.

Photographed at: Foyer of the Hotel New Otani
Osaka, where a Suminoe Textile carpet is installed

Dialogue
Dia
gue

Suminoe Textile Supports the “Last Touches”
What kind of value has Suminoe Textile created for 138 years since its founding? What should companies do to fulfill responsibilities to their stakeholders in
the present day when sustainability is emerging as a global theme? About these questions, Teppei Nagata, the President of our Company, talked with Mr. Ken
Shibusawa, Founder and Chairman of Commons Asset Management, Inc. and Chief Executive Officer of Shibusawa and Company, Inc., who is also known asa great-great-grandson of Eiichi Shibusawa.

What Is the Value Suminoe Textile
Has Created to Date?
Shibusawa Speaking of Suminoe Textile, the first thing thatcomes to my mind is carpets. In actuality, however, the Company
deals with interior textiles for various means of transportation,such as trains, buses and ships. Today I came here from Tokyo by
Shinkansen bullet train. I realized anew that I was with Suminoe
Textile products in the train as well.
Nagata Yes. Currently, our products are used in almost all kindsof public transportation systems, including aircraft. Originally,
Suminoe Textile was Japan’s first company that manufactured
hand-woven carpets. It was founded in 1883, around when Mr.
Eiichi Shibusawa was playing an active role in the nation’s
development.
Shibusawa Suminoe Textile was a start-up enterprise, just likethe first modern bank in Japan founded by Eiichi Shibusawa. To
indicate the presence of the start-up, Eiichi compared money,
humans and other kinds of capital to “dew drops.” It is true that
individual dew drops are tiny, but if many dew drops gather
together, eventually they become a big river and have power tocreate a new society. He called this "gappon shugi," which istranslated as “stakeholder capitalism” (rather than traditional
capitalism), although he is known as the “Father of Japanese
capitalism.”
Nagata I see. By gappon he meant “bringing together capital.”

9

Suminoe Textile Group CSR Report 2021

Shibusawa That’s right. In his famous book “Rongo to Soroban(The Analects and the Abacus),” Eiichi Shibusawa expressed his
idea of producing new value by combining the Analects(morality) and the Abacus (profits), which are seemingly
incompatible with each other. I believe that his basic attitude
focused more on the “and” in “A and B,” rather than the “or” in “A orB.” The perspective of “or” is indispensable in conducting analysis
and organizational operations since it can improve efficiency byseparating something from something else. However, this alone
cannot give rise to a new creation because no more chemical
reaction will occur by separating things with “or.” On the other
hand, the perspective of “and” has the potential for creating newvalue by connecting things that are seemingly contradicting andconflicting with each other, as in the case of “The Analects and the
Abacus.” Do you think this way of thinking has something incommon with the carpets that your founder manufactured byfusing Japanese technologies and western culture?
Nagata I certainly think so. During the Meiji Period (1868-1912),
Japan introduced various western-style items in an attempt tocatch up with western countries. Carpets were certainly one ofthem. Our Company started business in this field in its infancy andreceived orders for the manufacture of luxury carpets that wereused in the Imperial Diet Building, the State Guest House andother renowned structures. Meanwhile, we also advanced into
the field of interior fabrics, including carpets and seat covering
materials for trains, ships and other public transportation systems,

which were becoming widely introduced nationwide. When the
Osaka City tram line was launched in the mid-Meiji period, ourCompany delivered a seat covering woven with the city’semblem, the Miotsukushi (a marker to warn ships away fromshallows and sandbanks). Then the Company was flooded withsimilar requests from other municipalities, making it a popular
trend to incorporate their emblems in seat cover designs for city
trams nationwide. This is one of the anecdotes about us.
Shibusawa I know that later Suminoe Textile expanded into
the automotive textile and other fields, ahead of othermanufacturers.
Nagata Yes. In 1931 before World War II, our participation in theautomotive industry began with supplying seat covering
materials and floor carpets to General Motors and Ford Motor
Company. During the postwar period of rapid economic growth,
Suminoe Textile imported from the United States a dedicatedmachine to start mass production of carpets, which werehigh-end products until then. In this manner, the Company
contributed to the widespread use of carpets in ordinary
households.
Shibusawa I understand that your Company has expanded its
business fields in line with the trends and needs of the times bysteadily increasing the areas where its strength can be displayed,while leveraging its accumulated technologies.

Initiatives for the Environment in Advanceof the Time
Shibusawa As for the trends of the times, last year the Japanese
government announced its policy on carbon neutrality, pledging
to “reduce greenhouse gas emissions in Japan to net zero by
2050.” Private companies are therefore increasingly urged to takemeasures to reduce CO2 emissions or other environmental
measures. What is the progress on Suminoe Textile’s initiatives?
Nagata In fact, our Company started to produce earth-friendly
products about 30 years ago, when we became aware that wewere about to enter the era of the environment.
Shibusawa That’s amazing. What made your Company
develop environmental awareness?
Nagata At that time, while PET bottles quickly became popular
as beverage containers, environmental pollution caused bydiscarded PET bottles began to emerge as a social problem. To
address this problem, the Company purchased a polyester yarn
spinning machine, which led us to the development of スミトロン® (SUMITRON) in 1990. This is a recycled yarn made of chips
recycled from waste PET bottles, and we used this yarn in thesurface pile materials of carpets.
Shibusawa I remember that in 1990, Japan was at the peak of
the bubble economy. In the go-go bubble era, when people
were in a festive mood, Suminoe Textile was implementing a very
forward-looking strategy. As shown by the fact that it became thefirst to manufacture carpets in the early Meiji period, yourCompany has maintained a corporate culture that encourages
employees to actively take on new challenges.
Nagata In some cases, our Company may be too far ahead ofits time (laugh). Even after the development of スミトロン®
(SUMITRON), in 1998 the Suminoe Textile Group stipulated its
development philosophy of “KKR+A (Kenko [Health], Kankyo[Environment], Recycle and Amenity). Our business fields deal
with interior materials for living spaces, offices, hotels and public
transportation systems. Since all of these interior materials may
have some contact with the human body, we thought that theymust be not only comfortable but also beneficial to people’s
health and the environment.
Shibusawa If you are to meet various requirements, it would
be more difficult to develop technologies.
Nagata You are right. The Company faced the greatest
challenge when we worked on recycling of polyvinyl chloride(PVC). PVC is used on the back side of the carpet tiles installed in
offices, etc. Conventionally, landfilling was the only method todispose of PVC waste. To address this issue, we studied how torecycle PVC waste. As a result of much hard work, in 2011 we
finally succeeded in developing a technology which enabled us
to use chips recycled from waste carpet tiles as raw materials for
new products. We have now achieved a recycled material ratio of
up to 84%.
Shibusawa You speak of circular recycling. With the capacity oflandfills in Japan approaching their limit, it is encouraging to learn
that your Company is contributing to waste reduction throughrecycling of used carpets. I presume that it has also the effect of
curbing CO2 emissions.
Nagata It's just as you say. We take an integrated approach,covering all processes from recycling to manufacturing, which
has enabled us to generate fewer CO2 emissions during raw
materials shipment and to simplify the manufacturing processes.
Consequently, when we produce 10,000 m2 of carpets, CO2
emissions can be reduced by 40-50 tons. The wider the spread ofrecycled products, the lower the CO2 emissions. As such, we
believe that this initiative will help resolve the issue of climatechange. Moreover, the Group discontinued “dyeing” of pile yarn
used for the surface of carpets in 2020, as part of our efforts forenvironmental protection.
Shibusawa What do you mean by “discontinue dyeing”?
Nagata Traditionally, woven white carpets were dyed various
colors. We have now shifted to using solution-dyed yarn, which ispigmented at the spinningstage. This transition has not
only reduced energy consumption during the production process but also saved
energy for purifying dye-contaminated wastewater.
makes
Shibusawa That
sense. Still now you are ad-

Suminoe Textile Group CSR Report 2021

10

Feature 1 Dialogue Suminoe Textile Supports the “Last Touches”

dressing various other themes, aren’t you?
Nagata Yes. For instance, a project for recycling discarded
nylon fishing nets is currently under way. Since nylon nets are
non-biodegradable, if left in the ocean, these nets will adversely
affect ecosystems and the environment. Under this project, weare engaged in activities to collect these abandoned nets andrecycle them into new yarn, in collaboration with partnercompanies and members from a fisheries cooperative associationin Hokkaido. We have already started to make bags, pencil casesand other products using yarn recycled from discarded fishingnets (see p. 46). This bag is an example of such products.
Shibusawa What a fashionable bag! I wouldn't have noticed
that it was made from discarded fishing nets if you hadn't told me.

Growth Strategy Looking Ahead to a
Sustainable Future
Shibusawa Eiichi Shibusawa’s “Rongo to Soroban (The Analects
and the Abacus)" can be translated as “Sustainability” inmodern-day language. Any business cannot be sustained
without using the Abacus (for profit-loss accounting). However, abusiness that seeks its own Abacus (profits) alone will not last, too.
We can sustainably continue a profit-making business only when
it is accompanied by the morality. In this sense, I believe that
morality was the one thing that he could not compromise on.
What are the things that your Company cannot compromise on?
Nagata Primary among them is comfort since our products are
assumed to be touched by people. In the case of carpets, we areuncompromising in pursuing greater foot comfort andsoil-resistance. In the case of car seat coverings, we work hard to

make them more comfortable to sit on and to enhance theirfunction to prevent the seats from getting sweaty. We consider
human-friendliness to be the fundamental requirement for fabricproducts.
Shibusawa I think that Suminoe Textile falls in the category of
the so-called “100-year-old companies.” These companies havesurvived not by repeating the same thing for 100 years but by
constantly evolving themselves, keeping pace with the changing
times, while preserving tradition and valuable and time-tested
technologies. While listening to you, I feel that adding new value
to traditional products serves as the driving force behind thegrowth of your Company. What kind of changes and evolutions
are now taking place in your Company?
Nagata One example is the space design business. As
exemplified by the growing office trend of hot desking, the stateof “space” is expected to change in society in the future. Thus far,
our Company has produced products that color the “surface,”such as carpets and wallpaper. However, now we are expanding
the business domain to the planning and design of the whole“space,” not limiting it to the conventional businesses. At present,
the space design business mainly deals with stores in commercial
facilities. Going forward, we are planning to expand our businessdomains to include hotels and offices.
Shibusawa “Space” can stimulate people's sensitivity andemotions. In my opinion, humans are after all very analog andsensitive creatures. It is true that a digital society brings about anincrease in the efficiency of information transmission. However, I
think analog—something like the “last touches” that only humans
can provide—will eventually prove to be more appealing topeople. Probably, as society becomes more digitalized, “space” will
become more important for us.
Nagata Vehicle interior spaces may undergo further changes. If
an autonomous driving system that can automatically take us toa destination by just pressing a button is realized, vehicle interior
spaces may become more gorgeous, just like the interiors of ahigh-class hotel. The Company has offered comfort for living
spaces, commercial spaces, and transportation spaces by taking
different approaches suited to each type of space. In this manner,
we have accumulated technologies and findings in therespective fields. By bringing together these assets, we are now
promoting a project to explore new vehicle interior designs.
Shibusawa That’s true. In a future world where completely
automated driving has been realized, there is no need for all
vehicle occupants to sit in forward-facing seats. This business ispossible only for the Suminoe Textile Group, which handles bothinterior fittings and automotive textiles.

Visualization of “Invisible Value”
Shibusawa So far, I have heard from you about various
initiatives of your Company. They are your business strategies and11

Suminoe Textile Group CSR Report 2021

also include non-financial aspects that are called “ESG
(environmental, social, and governance)” activities. What is theelement that you think is most important among non-financial
aspects in order to achieve future corporate growth?
Nagata I think that “human resources” should be prioritized inour efforts to enhance our corporate value. Human resources
development has been designated as a priority issue in the CSR
Plan, which the Suminoe Textile Group has formulated annually.
In the Medium- to Long-term Management Targets announced
this year (see p. 6), we have set targets related to employees andlaid out the policy of further intensifying our efforts to realize abetter work environment and human resources development.
Shibusawa A company has two types of value: financial valuethat can be visualized and non-financial value that cannot be
visualized. My view is that financial value is merely the tip of theiceberg, and non-financial value corresponds to the rest of theiceberg that is underneath the water and cannot be seen. Human
resources are included in this non-financial value. It is humanresources that enable a company to create value for the future. In
this sense, I would like to suggest that a company should
highlight its human resources, saying “We can realize our visionbecause we have such capable employees” when expressing
what kind of value it wants to create and propose.
Nagata I see. If such portions are made visible for investors, itwill surely result in a favorable evaluation from them.
Shibusawa Yes. By clearly showing investors the value that is
usually less visible, you can persuade them that your Company
has potential for the future and earn their high regard. However, it
is difficult to convert this invisible value into numbers.
Nagata I quite agree. I would be at a loss as to what to do if I
were requested to visualize our Company’s tradition or
employees and expertise that support our product quality by
converting their value into numbers.
Shibusawa This is what I myself had wondered as an investor.
Recently, however, I have come to realize that it is not always
necessary to show accurate figures and that what is important for
a company is its attitude in seriously considering the best way tovisualize the value that was previously invisible. In that process,the company may discover a new issue to be addressed.
Nagata I see. While seriously thinking it through, I feel that our
Company will be able to make various findings.

Products That People Cannot Do without= Value Required by Society
Shibusawa To tell you the truth, it may be employees’ families
who should know the most about such information. It is very
important for both employees and their families that theirfamilies know about the company for which they are working. By
ensuring that employees can continue to work comfortably, thecompany can continue to produce value in a sustainable manner.
It will also turn out to be beneficial for shareholders and investors.

Nagata So, this CSR Report is one example of the means forappealing to our stakeholders.
Shibusawa From the viewpoint of investors, let me make somemore comments. Suminoe Textile has continued to cope
appropriately with the changing business environment. This isalso one of the important appealing points of your Company.
Moreover, this dialogue reminds me that Suminoe Textile
products are used by many people everywhere in their daily life.
This means that your Company has been sustainably providing
products that people cannot do without—that is, value requiredby society. I recommend that you should promote this advantage
more aggressively.
Nagata Thank you for your advice. I have learned that ourefforts to vitalize and further enhance our non-financial value thatis less invisible will result in improving both our financial value andour corporate value as a whole. In the future, we will continue toseek methods of appropriate information disclosure to help all
our stakeholders deepen their understanding of the Suminoe
Textile Group. Thank you very much for sparing me your time
today.
Profile of Mr. Ken Shibusawa
Chief Executive Officer, Shibusawa and Company, Inc., Founderand Chairman, Commons Asset Management, Inc. He earned his
MBA from the University of California, Los Angeles in 1987. After
working for several firms, including a major US hedge fund, where
he held the position of Japanese representative, Ken Shibusawa
founded Shibusawa and Company, Inc. in 2001. Later heestablished Commons, Inc. (now Commons Asset Management,Inc.) in 2007 and became its Chairman in 2008.

Suminoe Textile Group CSR Report 2021

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Feature 2 Global Expansion and Introduction of an Overseas Affiliate

U.S.A.
Surrounding Environment of Bondtex, Inc.

Global Expansion
Introduction of an Overseas Affiliate: Bondtex, Inc.

Greenville area●

In the Automotive Textile, 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 manufacturingand 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 Bondtex, Inc.
Bondtex, Inc was established in 1986 in South Carolina, the United States. It is mainly engaged in flame lamination of medical, interior and automotive products. In 2015, Bondtex
joined the Suminoe Textile Group, changing its status from a local company to a member of a global enterprise. To fulfill this new role, Bondtex has been diligently working everyday. Last year, the company introduced a new flame-laminating machine so as to enhance its product quality and competitiveness. Based on these advantages, Bondtex conducts
daily operations, always seeking to win new business.

Bondtex is located in the Greenville area, which had prospered in
the past as a center of the textile industry. From the late 1970s,
along with the declining industry, Greenville’s population had
decreased each year. However, later a major European
automobile manufacturer decided to select this area as the site ofits North American plant. This encouraged many companies toestablish their operation facilities here, as in the past. Many
European people immigrated to Greenville, causing an increase in
its land and building prices. However, the area’s attractive features
more than compensated for the high real estate costs. Greenvilleis a comfortable place to live in. Its climate is not very different
from that of Japan, except for the spring and autumn periods,
which are two weeks shorter than those of Japan. “Southern
hospitality” is a phrase used to describe the stereotype ofresidents who have lived here for a long time. Many of them arefriendly, kind and gentle. If you live here, you would have many
opportunities to realize it firsthand. Another feature of Greenvilleis a well-developed educational system. For these reasons,Greenville now enjoys great popularity and has consistently
ranked high in the Best Places to Live in the U.S.

Social Contribution Activities
Bondtex serves as a sponsor of the Bass Fishing Club of Dorman
High School, a local educational institution, and the Spartanburg
United Soccer Academy, a soccer academy for boys and girls.
Through the sponsorship, the company contributes to local
children’s growth and health promotion. In addition, Bondtex
makes donations to the Children’s Miracle Network, which

Bass Fishing Club of Dorman High School

provides support for kids who are fighting intractable diseases atchildren’s hospitals nationwide by funding costs of treatments,
etc. It also extends financial assistance to Mobile Meals of
Spartanburg, a welfare organization that delivers lunch to those
who have difficulty working due to accident injuries, welfare
recipients, and the like.

Impact of the Novel Coronavirus Pandemic and Infection
Prevention Measures
A number of Bondtex Inc. employees were confirmed to be
infected with the novel coronavirus (COVID-19). Among themwere those who got infected when they went to church on theweekend. These cases reflect religiosity that is a characteristic ofpeople living in this area. In many other cases, infections occurred
while gathering at home with their families and friends on theweekend. However, Bondtex has been successfully preventing
the occurrence of cluster infections within the company bycontinuously taking various measures. These include a mask
mandate at work, disinfection in common areas (dining lounge,
rest rooms, and doors), replacement of air conditioner filters, andproviding sanitizers at every entrance. Moreover, at the beginningof April, the US government announced the COVID-19
vaccination campaign for all citizens aged 16 and older. Due tothe spread of vaccination, the number of newly infected people
has dramatically decreased in Bondtex since April.
While expecting the beneficial effects of vaccinations(including the third booster shot), Bondtex will continue its
ongoing measures, with the aim of reducing the number of new
infection cases to zero.

Spartanburg United Soccer Academy

Downtown Greer
A town in the neighborhood of Bondtex, Inc.
Here, buildings constructed more than 60 years
ago were renovated, and restaurants and a local
beer brewery stand in a row.

Yoshihiko Noda, joined the Company in 1990

From the right in this photo, Noda, Director Marc,
and Factory Manager Beth13

Suminoe Textile Group CSR Report 2021

It's my eighth year living in the United States since I was transferred to Suminoe Textile of America (STA) in January 2014. In
2019, I started to work for Bondtex, Inc., where I am in charge of overall operations. While working in this country, I havebeen particularly impressed with the vastness of the United States, which has four time zones. Currently, I live on the east
coast. To travel to a different time zone—e.g., the State of Texas or Tennessee, which is one hour behind the east coast, or
the west coast, which is even three hours behind—I have to overcome jet lag that sometimes makes me exhausted.
Blessed with such a vast and fertile land, the United States has an increasingly high birth rate. It is said that the stableconsumption economy will continue to support American society. Although lifestyles have changed somewhat under the
influence of the COVID-19 pandemic, I will strive to stay up-to-date on these changes and pave the way for my future
career during my stint in this country.

Suminoe Textile Group CSR Report 2021

14

Businesses and Strategies of the Suminoe Textile Group

Overview and Growth Strategies of Each Business Segment

Automotive Textiles:

Suminoe Textile Co., Ltd., Suminoe Teijin Techno Co., Ltd., Teijin Tecloth Ltd., Owari Seisen Co., Ltd., Suminoe Techno Co., Ltd., Suminoe Textile ofAmerica 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 totalline 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 (the United States, Mexico, China, Thailand,
Indonesia, and India), thereby creating a globally optimized
supply system.

External Environment❶ 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 anddesign capabilities❺ Comprehensive strength based on integrated expertise of the interior
fittings and automotive textile businesses■ Major Product Lineup
Ceiling material
Seat covering materials
Seat backSun visor❶ Decrease in the number of domestically produced automobiles❷ CASE and rise of new EV manufacturers❸ Enhancement of environmental and noise control measures❹ Intensified price competition

Growth Strategy❶ Development, sales promotion and effective use ofenvironmentally friendly products❷ Development of interior materials for next-generation vehicles❸ Cost reduction through the optimization of material procurement❹ Development of products, focusing on “new parts” and“production with less man-hours” as key words❺ Horizontal development to overseas markets❻ Development of fabric materials using new production methods❼ Development and deployment in accordance with the situations
and issues of each global operation site

■ Delivery Track Records (Progress in Value Creation)

Door trim
Luggagecompartment

Floor carpet
Wheel house

Car matSeat covering materials

Floor carpet

Car mat

セルクロス® (CELL-CLOTH) wet-type synthetic leather adopted as a seat covering material for
New Nissan Rogue destined for the North American market

TopicsSucceeding in the development of “e.colore®（eco-loré）” denim-like fabric processing technology,
which strikes a balance between excellent design and environmental friendliness

Fabric processed with “e.colore®”

Equipment for “e.colore®” processing

The Suminoe Textile Group’s “e.colore®” has been well-received bycustomers. “e.colore®” is a fabric processing technology, which
improves design while reducing the dyeing process by effectively
interweaving a black solution-dyed yarn* with a yarn of the basefabric. This processing technology, which significantly reduces
the volume of dyeing solution, is friendly to the environment.
Recently, a customer requested us to develop an
eco-friendly seat covering material in the image of natural fabricmaterials, such as denim, on the occasion of redesigning avehicle model. Real denim is a fabric composed of undyed white
weft and indigo dyed warp yarns. It is truly suitable to the“e.colore®” technology, which aims to produce an eco-friendly
fabric by interweaving a black solution-dyed yarn with a yarn ofthe base fabric. For this reason, we started to develop “e.colore®”for denim-like fabric. In the development stage, the customer

15

Suminoe Textile Group CSR Report 2021

Surface of セルクロス® (CELL-CLOTH)

visited Okayama, which is called the “Denim Capital” of Japan, in
person. The Group worked very hard in pursuit of a seat covering
material with a quite realistic denim texture by paying attention
to the minutest details to express the denim's unique features
while referencing many denim fabrics. It was difficult toreproduce the characteristics of denim by only adjusting print
and base patterns. After going though hardships, we finallyovercame this issue and succeeded in the commercialization of avery realistic product. We will henceforth continue to make active
proposals for “e.colore®,” which is capable of expressing in theimage of natural fabrics while being conscious of theenvironment.
* Solution-dyed yarn: Yarn that is pre-colored by adding pigments in the stage inwhich its raw materials are melted by heat.

Among the synthetic leather products developed by the Group, the seat surface material セルクロス® (CELL-CLOTH) is the first to be
employed by an automotive manufacturer. For more than 15 years, セルクロス® (CELL-CLOTH) has satisfied requests from customers.
Although initially it had many technical problems, by resolving them one by one and making design changes, we have had the productanswer the needs of the times. Recently, Nissan decided to adopt our wet-type synthetic leather セルクロス® (CELL-CLOTH) for the New
Nissan Rogue, in addition to the previous and current models of the Nissan X-TRAIL, both of which were designed for the Japanesemarket. The leather is produced by using a wet construction method unique to the Suminoe Textile Group. Even if sitting in the seat inwet condition, you can easily wipe off the water drops on the seat surface. Furthermore, its moisture permeable micro-porous structure
allows you to drive comfortably without feeling sweaty for many hours. To enhance the marketability, we have added a more delicate
pattern to the conventional pattern designed with simple dot embossing. Now the Group can offer a range of new expressions of セルクロス® (CELL-CLOTH) by modifying and combining the functionality and excellent design in accordance with customer requests on an
as-needed basis.

Yuji Wakino
Sales Department
No.2
Business Division
Suminoe Teijin TechnoCo., Ltd.

As its name suggest, セルクロス® (CELL-CLOTH) is
functional synthetic leather that has a cell structurewith micro pores on its surface. Featuring awaterproof function and high moisture permeability,
this leather is capable of preventing the seat fromgetting sweaty. In terms of design, a Nishijin-brocade
pattern is expressed with embossing to make users
feel the “Japanese Identity.” As for this embossing
expression, we had great difficulty in meeting ourcustomer’s stringent requirements. After repeatingprocessing and adjustment many times, we wereable to gain the approval of Nissan Design. As aresult, セルクロス® (CELL-CLOTH) has received highevaluation not only for its functionality but also for its
design. We are pleased that the customer decided toadopt セルクロス® (CELL-CLOTH) not only in themodels for the Japanese market but also in thosedestined for the North American market.

Yuko Takayama
Synthetic Leather
Department
R&D Center
Suminoe Teijin TechnoCo., Ltd.

For the セルクロス® (CELL-CLOTH) design
adopted this time, we used a more detailed
pattern with fine slits on the entire surface, greatlychanging the impression of the previous dotted
design employed by the current models of the
X-TRAIL. In creating the new design, our major
challenges were to secure moisture permeability
that characterizes セルクロス® (CELL-CLOTH),
perform embossing to express the detailed
design, and establish physical properties of theseat surface. Moreover, we were requested to givea soil resistant finish to the gray specifications toprotect the light color. Although we faced great
difficulties due to many technical challenges, byresolving them one by one we were eventuallyable to reach mass production. We will continue tomake efforts to meet various needs in the future.

Suminoe Textile Group CSR Report 2021

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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., Suminoe Works Co., Ltd.,Interior Fittings: Sewing Hyogo Co., Ltd., TANGO TEXTILE Co., Ltd., Suminoe Techno Co., Ltd., CPO 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, aswell 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.

External Environment❶ Preserving traditional techniques and handing them down to future
generations (arts and crafts, hand-woven carpets and hooked rugs, andplush hand-woven curtains)❷ Credibility based on track record of delivering products to renowned facilities❸ Exceptional skills to meet customer needs through trinity ofmerchandizing, design and sales 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 ofenvironmental protection■ Major Product Lineup❶ Expand lineups of environmentally friendly products andincrease sales of these products.
❷ Launch a new line of business to sell custom-made rugs.
❸ Develop new products for housing.
❹ Increase new customers.
❺ Enhance transmission and penetration of our brand image.
❻ Strengthen directly operated EC business.

■ Delivery Track Records (Progress in Value Creation)

Carpet tiles

BERRY ALLOC® PURE LVTPlush hand-woven curtains

Rugs and mats

Curtains

Wallpaper, sliding paper doors

Hand-woven carpets andhooked rugs

Nishijin brocade fabricCoin purses and card holders

Topics

TopicsMany custom-made hand-tufted carpets adopted at the W Osaka, Japan’s first W Hotel

Tsuzureori Doncho (plush hand-woven curtains) delivered
to Arcrea HIMEJI (Himeji Culture and Convention Center)by TANGO TEXTILE Co., Ltd.

“空気を洗う壁紙® (Air Cleaning Wallcoverings) CRAFT
LINE” from RUNON Co., Ltd., updated in tune with thelatest interior trends

In March 2021, the W Osaka opened as a luxury lifestyle hotel along Midosuji, the primary main street running north-south through theheart of Osaka City. The W is one of the brands owned by Marriott International, a worldwide hotel chain. The concept of the newly
opened W Osaka is an “adult playground” that unleashes creativity, not just a hotel to stay at.” It has innovative and inspirational guest
rooms, which clearly differentiate the W Osaka from conventional luxury hotels. Our hand-tufted carpets with original patterns havebeen adopted for these guest rooms. These brilliant carpets are designed with a gradation of either pink or blue, respectively, in theimage of cherry blossoms or the ocean in Japan. We were able to complete the orders for these hand-tufted carpets, while meeting thecustomer’s detailed requirements regarding both design and specifications, in a speedy and appropriate manner. This track record ofdelivering such high-end products represents the strengths unique to the Suminoe Textile Group, which is capable of providing
proposals through an integrated production and sales approach.

Doncho for the Grand Hall

Yokohama Konandai Regional-based Integrated Care Hospital

Doncho for the Medium Hall

The new facility Arcrea HIMEJI was constructed as a center of culture
and art. The late Mr. Kenzo Takada, a world-renowned designer who
was born in Himeji, donated his designs for the doncho (plush
hand-woven curtains) of the stage halls in Arcrea HIMEJI. TANGOTEXTILE Co., Ltd. received the order for manufacture of thesecurtains for both the Grand and Medium Halls and delivered themto the facility. The design of the Grand Hall curtain expresses a scene
in which the eastern sky is quietly beginning to lighten as themorning sun is coming up, shining light on the White Heron Castle(Himeji Castle) and the earth, using peony flowers as a motif. The
design of the Medium Hall curtain expresses the splendor of sunset,
along with the peony flower motif, depicting the White Heron
Castle bathed in the fantastic light of the sun, slowly sinking below
the western horizon, as if it were rewarding us for our labor. TANGOTEXTILE faithfully reproduced these sophisticated designs on theplush hand-woven curtains, which were highly acclaimed byvarious parties concerned at the time of delivery.
17❶ Increased demand for environmentally friendly products❷ Decreased number of new housing starts❸ Profit deterioration risk due to higher materials costs

Growth Strategy

Suminoe Textile Group CSR Report 2021

Wallcoverings used in medical facilities, nursing care homes andwelfare facilities should be highly functional as interior fittings.
At the same time, as interior elements, they are required to havepsychological effects to comfort medical/nursing care receivers
and enhance healthcare professionals’ motivation for work.
Since the initial launch of “空気を洗う壁紙® (Air Cleaning
Wallcoverings) CRAFT LINE,” we have updated this series of
products several times in tune with the latest interior trends. Bybalancing the deodorant function of the トリプルフレッシュ®
(TRIPLE FRESH) and excellent design, we strive to develop
products that help create highly satisfying living spaces andworking environments. Since this age is known as the 100-yeartime period, there will be an increasing number of people
receiving medical or nursing care at home. For this reason, ourefforts are also directed at advancing proposals for generalhousing.

Kazuhiro MaseFirst Section, Third
Contract Department
Kinki BlockWest Japan Branch
SUMINOE Co., Ltd.

Our custom-made hand-tufted carpets wereadopted for the guest rooms of the W Osaka.
Before the designs of these carpets were
determined, we held many discussions withoverseas designers. Finished with dynamic
gradations, these carpets are well-received by thehotel guests. The guest rooms with a playful
atmosphere are enlivened by not only our carpets
but also other interior items that are distinctively
and sophisticatedly designed. I still remember that
I was greatly surprised when I first saw the mockup
room. These carpets were installed in August inunder extremely hot conditions, which caused us
great trouble. Nevertheless, I am delighted that I
was able to be involved in this project, which
contributed to the W hotel brand’s first foray into
Japan.

Erika Chikamori
Designer
East Japan Branch
SUMINOE Co., Ltd.

For this project, we worked to make designs
while exchanging views with foreign designers in
the Netherlands. It was considerably difficult to
express beautiful gradations on hand-tufted
carpets. Before the designs were adopted, we
had to make many prototypes. When I visited thecompleted hotel for the first time, I was greatly
stimulated by innovative and playful designs
found here and there, which could radicallyoverturn the conventional concept. In addition,
this project provided me with an opportunity to
be engaged in “Dutch Design” in the Netherlands,
where I had studied in the past. I therefore felt adeep attachment to this project.

Suminoe Textile Group CSR Report 2021

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Businesses and Strategies of the Suminoe Textile Group

Overview and Growth Strategies of Each Business Segment

Traffic Facilities: 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.

External Environment❶ The industry’s top market share held for more than a century❷ 120 year-long credibility and track record as a pioneer of theindustry❸ 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

Moquette, headrest covers, curtains

19❶ Increase order receipts for renovation and replacement
works, both of which show signs of recovery.
❷ Develop and increase sales of new products.
❸ Develop environmentally friendly fabrics.
❹ Increase market shares.
❺ Propose and receive orders for SUMICUBE® with a newtactile impression.

■ Delivery Track Records (Progress in Value Creation)

Carpets

Flooring film for signs

SUMICUBE®, knit fabric

Topics

TopicsOur energy-saving and eco-friendly products, moquetteseat coverings with inkjet print patterns, employed by
the WEST EXPRESS Ginga, a long-distance train of JR WestOur eco-friendly product SUMICUBE® adopted for the
JR East Yokosuka-Sobu Rapid Line E235 Series train

On September 11, 2020, West Japan Railway Company (JR West)
started operation of its new long-distance train, WEST EXPRESS
Ginga, whose concept is “a train for casually enjoying rail travel.”
For the interior materials of its vehicles, JR West adopted theGroup’s moquette seat covering materials with inkjet print
patterns, in addition to carpet tiles and curtains. Inkjet is anenergy- and resource-saving system to print an image using thedigital printing method. The inkjet printing system allows small
lot size and multiple color printing. Taking advantage of thesefeatures, the Suminoe Textile Group widely deploys
inkjet-printed textiles for train cars and buses everywhere in the
country.

The new E235 Series train cars, which East Japan Railway
Company (JR East) introduced on the Yokosuka-Sobu Rapid
Line, went into operation on December 21, 2020. Its ordinarycars employ Suminoe Textile’s knit seat covering materials using
recycled polyester yarn and SUMICUBE® seat cushion material
for train cars. SUMICUBE® is an environmentally friendly productthat can be recycled even after long-time use. Since thisproduct is made from safe materials that do not generatecyanide or other poisonous gases at the time of combustion,
SUMICUBE® does not cause air pollution when disposed of. With
these features, SUMICUBE® has become widely used in many
train cars, along with growing customer interest in purchasing
eco-friendly products in recent years.

Suminoe Textile Group CSR Report 2021

❶ Decrease in commuting and business trips due to penetration of
teleworking❷ Decrease in the number of trains/buses owned❸ Increase in travelers in the post-pandemic era❹ Practical application of MaaS
❺ Declining birthrate and aging population

Growth Strategy

Our interior material adopted for the 17000 Series train on the Yurakucho and Fukutoshin Lines
operated by Tokyo Metro
Tokyo Metro Co., Ltd. introduced the new 17000 Series train on the Yurakucho Line and the Fukutoshin Line to replace the 7000 Series
train. The new series has been in commercial operation since February 2021. The 17000 Series train, which won the Good Design Award
2020, adopts a round headlight reminiscent of the conventional 7000 Series and 10000 Series so that customers can feel more familiar
with the new train. Its vehicle interior space is stylishly designed to match the colors of the Yurakucho Line and the Fukutoshin Line.
In-car comfort and safety have also been enhanced by such means as providing free spaces in all vehicles and lowering the vehicle floor
height to reduce the level difference between the vehicle and the platform.
The 17000 Series train has adopted our moquette seat covering material processed with トリプルフレッシュ®デオ (TRIPLE FRESH
DEO). This treatment technology has been highly regarded for its deodorant, antibacterial, antivirus functions that are unique to
Suminoe Textile. Additionally, the train’s seat cushion material uses SUMICUBE®, which excels in safety performance.

Yoshito Okuda
Tokyo Traffic SalesGroup
Traffic Sales
Department
Suminoe Textile Co.,Ltd.

The 17000 Series is the new train type replacing
the 7000 Series train, which has been in service on
the Yurakucho and Fukutoshin Lines for about 45
years. The Fukutoshin Line will mark the 15th
anniversary of its opening in 2023, and the
Yurakucho Line will celebrate its 50th anniversary
in 2024. Toward these anniversaries, Tokyo Metroplans to introduce a total of 21 trains comprising
180 vehicles of the 17000 Series by fiscal 2022. We
held discussions on how to express the colors of
the Yurakucho and Fukutoshin Lines and mademany prototypes to develop the interior materials.
The 17000 Series train runs in a very wide
area covering Tokyo, Kanagawa, and Saitama. We
are honored to have been able to contribute toproduction of a train vehicle that is loved by manycustomers.

Mr. Tetsuya
Kawamura
Design Section Chief
Rolling Stock
Department, Railway
Headquarters
Tokyo Metro Co., Ltd.

To provide an even safer, more stable andhigher-quality transportation service, Tokyo Metro
introduced the 17000 Series train to the YurakuchoLine and the Fukutoshin Line. There has been an
emerging need to take measures to improve thein-car environment, including infection prevention
measures. In order for the new train cars to meetthis new need, we wanted a seat covering material
having deodorant, antibacterial and antiviralproperties, in addition to durability andburn-resistance. In this respect, Suminoe Textile Co.,
Ltd. created a seat covering material that satisfies
our functional requirements. We are also pleased
with its design in line with the concept of the open
and bright car interior accented with the railway
line colors. We would like to extend our deep
appreciation to the Company for their support andcooperation.
Suminoe Textile Group CSR Report 2021

20

Businesses and Strategies of the Suminoe Textile Group

Overview and Growth Strategies of Each Business Segment
Suminoe Textile Co., Ltd., Owari Seisen Co., Ltd., Suminoe Techno Co., Ltd.,

Functional Materials: Suzhou Suminoe Textiles Co., Ltd., Suminoe Textile Vietnam Co., Ltd.

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

Advantages

The Suminoe Textile Group has delivered products thatincorporate its unique technologies it has accumulated, suchas トリプルフレッシュ® (TRIPLE FRESH) deodorizing filters andolefin bathroom flooring. In addition, the Group is pursuingendless business possibilities, offering new value in the fieldsof smart textiles and functional food based on biotechnology,
in keeping with the theme of KKR+A, or Kenko (Health), Kankyo(Environment), Recycle and Amenity.

External Environment❶ Effective use of functional processing, such as
deodorization and antivirus❷ Expansion of business domains regardless of conventional
fields and industries❸ Systems to promote development of diversified usages❹ Promotion of delicate product development to meetcustomer needs■ Major Product Lineup❶ Optimize the production and supply systems of textile-based electric heating appliances.
❷ Promote development of new applications of functional materials by using processing technologies.
❸ Increase sales of products made by functionally processing technologies, such as deodoranttreatment and antivirus treatment.
❹ Promote thorough quality management and supply of products by obtaining JISQ9100 certification,a quality management system standard for the aerospace industry.
❺ Promote development of new health supplements following “Kakidanomi.”❻ Promote commercialization of smart textiles.
❼ Cooperate with the development section to strengthen the capability of development and sales.

■ Introduction of Technologies (Progress in Value Creation)

Electric carpets

Deodorant air filters
for air purifier

The Tispa Series “香りでごまかさない本当の消臭® (Real Odor
Deodorization without
Disguising with a Scent) ”“Kakidanomi”
supplement containing
persimmon (kaki)
polyphenol

Roofing materials

CLOTHCABIN®

Floor materials forbathrooms

Interior materials
for aircraft

Roof
tile side
Heatinsulating
property Roof board side

Sheets (conceptual image)

TopicsExpansion of products processed with トリプルフレッシュ®デオ (TRIPLE FRESH DEO)

Development of a water-wetting detection system that contributes to resolving social issues in a broad range of fields

In recent years, “antivirus” has become a keyword in product development. In recognition of this market need, the Suminoe Textile Groupis endeavoring to apply the トリプルフレッシュ®デオ (TRIPLE FRESH DEO) to various products. The トリプルフレッシュ®デオ (TRIPLE
FRESH DEO) is a technology featuring hybrid functionality. Based on the Group’s proprietary deodorant treatment technology, it wasdeveloped by adding antibacterial, antivirus and antiallergen functions. At present, the Functional Materials Business Division and theDevelopment Department are working in cooperation to advance the development of a sheet and a prefilter (that can be retrofitted toair-conditioning equipment), aiming to add the functionality to non-woven fabrics mainly for material use.
Based on our past track records of developing, studying and commercializing highly functional non-woven fabrics, we will further
expand the specifications and functionality of the トリプルフレッシュ®デオ (TRIPLE FRESH DEO), while finding a new market andbroadening the scope of its applications, in order to help make people’s lives more comfortable and safer.

Water wetting detection fabric(in a ribbon shape)

Water wetting detection fabric(in a sheet shape)

Currently, the Suminoe Textile Group is putting its energies into
the development of a water wetting detection system.
The water wetting detection system is intended to let
users know at a glance that an object is wet without touching it.
This system uses a water wetting detection fabric (woven with
conductive yarns covered with water absorption andquick-drying yarns) to detect water wetting. If it is detected, theinformation will be visualized through the device.
This system features the ability to detect the moisture level
to determine which level the object is in—dry, damp, or wet—by adjusting the system sensitivity. In addition, since the sensor
is fabric-based, the system can cover a large detection area forwater wetting and detect objects in various forms.

21❶ Rise of hygiene awareness andhealth-consciousness❷ Increase in at-home time lengthand greater focus on private affairs❸ Increase in awareness ofenvironmental load reduction❹ Aging society

Growth Strategy

Suminoe Textile Group CSR Report 2021

Water wetting detection system device (conceptual image)

If the above features can be applied to toileting assistance,
it will be possible to use the system to decrease caregiverburden at nursing care sites, which is a current matter of social
concern. For this reason, the water wetting detection system is
attracting much attention from various customers. The system isalso expected to find applications in a broad range of fields,such as construction, engineering works, and entertainment.
The Group will work toward the commercialization of thissystem by listening to front-line workers about their needs andconducting many demonstrations. In so doing, we will continue
our efforts to help resolve social issues.

Shohei Ikeda
Osaka Sales
Department No.2
Functional Materials
Business Division
Suminoe Textile Co.,
Ltd.

Prefilter (conceptual image)

In conducting sales activities, nowadays, I always
hear the words “antibacterial” and “antivirus.”
Given the emerging needs for theseproperties, I think that promoting the applicationsof the トリプルフレッシュ®デオ (TRIPLE FRESH
DEO) treatment technology is an important
theme that we should promptly address and thatoffers us a business opportunity. Currently, a sheet,prefilter and other products to which thetechnology is applied are under development. I
am ready to work together with other relevant
departments to speedily commercialize theseproducts and then increase sales of them. At thesame time, I will stay attentive to the deploymentof new products in implementing sales activities.

Amid the increasing demand for antibacterial andantivirus functions, we found that the functions of
the トリプルフレッシュ®デオ (TRIPLE FRESH DEO)
technology matches the market needs. We
therefore strive to develop a prefilter made offunctional non-woven fabric for air-conditioning
equipment. The challenge is to prevent theprefilter, as a retrofittable product, from applying
load to the air-conditioning equipment and to
Takahiro Hamasaki impart the above functions to the prefilter. We are
studying the optimal material and processing
Functional Processingand Development
method toward the development of new
Groupproducts. I will continue my utmost efforts toTechnical Center
develop products that will meet the needs of ourDevelopment
customers.
Department
Suminoe Textile Co., Ltd.

Suminoe Textile Group CSR Report 2021

22

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 through the production
and sales of good products, and a prosperous business.
Company Motto

Code of Conduct

We pride ourselves as a pioneer in the

1. We comply with all laws and ethical businessstandards, and conduct corporate activities in an
impartial and ethically 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, andplace high 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 contributeto environmental preservation initiatives.

interior design and furnishing industry
and persist in a spirit of cooperation,
sincerity and determination.
Company Purpose

Company Motto
Code of Conduct

Shareholders
and investors

Customers
Suppliers

CSR Plan
In order to continue to grow into the future, we have formulated the Medium- to Long-term Management Targets, focusing on our
medium- to long-term “ideal corporate image” with ESG management in mind. Along with these targets, we have drawn up the 3rd
Medium-term CSR Plan, in which our key CSR issues are identified. To address these issues, the Group is moving ahead with various
initiatives.

Seven SDGs on Which the Suminoe Textile Group Focuses

ESG*
item

Global environment

Specific management strategies

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.

Ensure access to an
ordable, reliable,
sustainable andmodern energy for all

Promote sustained,
inclusive and sustainableeconomic growth, full andproductive employment,
and decent work for all

Make cities andhuman settlements
inclusive, safe, resilientand sustainable

Ensure sustainableconsumption andproduction patterns

Take urgent action tocombat climatechange and its
impacts

Priority issues

G

2

ComplianceG

3 practices

G

4 plan BCP

Sand5 development
working styles●Improve education and training programs●Respect diversity●Work-life balanceS

6●Promote health management●Correct the issue of long working hours and increase the use of
paid leave●Prevent occupational accidents

S

7 activities●Social contribution activities for the local community●Social contribution activities relating to environmental protectionS

8 External
communications●Share the Company’s policy between management and employees●Timely disclosure of information

E

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

Fair operating

Business continuity

Human resource

Occupational
health and safety

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).

●Continue to implement compliance training●Implement harassment prevention training●Operate the Corporate Ethics Hotline●Risk management

1

Communication with Stakeholders
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●Promote fair business activities ●Internal control●Strengthen global risk management●Management by walking around ●Restructure the core systems●Strengthen the managerial decision making by outside directors

G

CSR that Serves as a Management Foundation

Establishing a fair and highly transparent governance system.
Ensuring thorough compliance* to conduct corporate activities with a highsense of ethics.
Supporting employees to develop themselves through worthwhile work,
while giving consideration to the creation of an employee-friendly
environment and the diversity 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 trust of society.

Measures (initiatives)

Corporate
governance

Suminoe Textile Group CSR
CSR through Business Operations

Achieve genderequality and empower
all women and girls

Build resilient
infrastructure, promote
inclusive and sustainableindustrialization andfoster innovation

3rd Medium-term CSR Plan (Planned period: June 2021 – May 2024)

Employees
Local communities

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.”

Social contribution

Environmental
impact reduction

Related SDG(s)●Provide work-related legal education●Promote procurement based on the Green Procurement Guidelines●BCP measures to be taken in the event of a disaster or pandemic

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 Environment, Social and Governance.
Recently, the idea that these three aspects are necessary to achieve long-term growth has become widespread in the world.

23

Suminoe Textile Group CSR Report 2021

Suminoe Textile Group CSR Report 2021

24

Foundation that Supports Growth

Initiatives for CSR
Fiscal 2020 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 2020 are shown in the table below.
A: Accomplished B: Almost accomplished C: Not accomplished

FY2020 results

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 three times to review activity plans.
Prepared a report on the revision of the Corporate
Governance Code (September 2020).

A

Evaluate the effectiveness ofinternal control over financial
reporting of Group companies
that fall within the scope ofassessment.

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

Provided compliance education at training by level(for managers, and for new supervisors/leaders at
training that they received at the time of theirpromotion).
Provided compliance education at training for new
employees. [Rate of plans implemented:100%]
Provided compliance education (one training
program for officers, and one compliance workshop).

A

Continue compliance relatedmonitoring.

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

Conducted compliance audits in rotation. [Rate ofplans implemented: 100%]* Compliance audits were conducted at two Group
companies in Japan.

A

Announce the Hotline to all
employees.

Respond to the revision of the Whistleblower
Protection Act.
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%]

Did not respond to the revision of the Whistleblower
Protection Act. ⇒ Response will be made in the next
fiscal year.
Announced the Hotline to all new employees.
Announced the Hotline to all employees on theoccasion of training by level, training for new
employees and compliance workshops. [Result: 100%]

Visualize the status of contracts
Fairand implement legal educationtransactions and monitoring concerningbusiness transactions.

Disseminate information on the Subcontract Act andother legal matters.
Conduct internal audits. [Rate of plans implemented:
100%]

Answered the “survey concerning business
transactions with subcontractors.”
Disseminated important notes regarding the
Subcontract Act through the intranet.
Conducted internal audits (as planned in the previous
fiscal year).

Green
Promote the Green Procurement
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.

Increase the percentage of employees with disabilities.

Did not increase the percentage of employees withdisabilities.

C

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 and increasing the use of paid leave).

Continued to promote no-overtime days.
Increased the use of paid leave.
Created and announced the childcare support
manual.

A

Provided training sessions by level and by theme andimproved the content of these sessions.
Implemented skill improvement training and aseminar on work efficiency improvement.

A

Periodically announced foreign language training andself-development programs.

B

P.27
~30

Complianceー

Human rights, employment, treatment of
employees, and human resource development

Respect fordiversity

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

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

P.33
~34、
37
~38

Develop global human resources.

Human
resource
Women’s empowerment
development

Safety, disaster prevention, and health

Revitalization of human resources

25

P.35
~36

Occupational
Promote activity plans to protect
health and the safety of employees.
safetySuminoe Textile Group CSR Report 2021

Provide training sessions by level and by theme andimprove the content of these sessions.
Provide prior training for employees who will leave foroverseas duty.
Continue to provide foreign language training programs.
Actively recruit female employees.
Dispatch female employees to the cross-industry
seminars and study meetings held outside the Group.
Publicize the active roles played by female employees.
Implement round-table discussions between female
employees and their role models.
Operate the Job Return System and promote the
System among Group companies.

P.34

ー

BCP

Promote a business continuity
plan (BCP) to be implemented in
the event of a disaster or
pandemic.

Intellectual Promote understanding ofproperty intellectual property.

BA

At each operation site, hold interviews with
employees to promote communication with them.
Hold interviews for fostering next-generation leaders.
Hold lunchtime meetings.

At each operation site, held interviews with
employees to promote communication with them.
Held interviews for fostering next-generation leaders(with six employees).
Implemented an online round-table discussion (onhow to balance work, childcare, and household tasks).

A

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.
Promote risk assessments.

The Central Health and Safety Subcommittee
consolidated opinions and promoted information sharing.
Shared information related to occupational accidents.
Re-established each Group company’s system forpromoting health and safety.
Shared health and safety education materials.
Introduced health and safety education into training
for new employees.
Promoted risk assessments (to ensure that theconditions of every dangerous spot before and after
improvements were always recorded).

B

A

FY2020 results

Self
assessment

Continue to provide anti-harassment training.
Further notify the contact points for harassment
consultation.

Provided anti-harassment education at training by level(for managers, and for new supervisors/leaders at trainingthat they received at the time of their promotion).
Provided compliance education at training for new
employees. [Rate of plans implemented: 100%]
Disclosed the revised laws concerning
anti-harassment measures through the intranet.

B

Manage and grasp employees’ overtime work hours.
Hold interviews with employees who work longhours.
Implement measures for operational improvement.

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.
Continued to implement the systems for staggered
working hours and working from home during the
COVID-19 pandemic.

B

Promote health management.

Helped employees with flu vaccination expenses.
Continued to implement COVID-19 infection
prevention measures at each office and factory.

A

Conduct a safety confirmation drill at other offices/factories.
Conduct a BCP drill at the Head Office.
Hold discussions on improvement of the personalsafety confirmation method.
Formulate infection prevention measures andguidelines to be implemented during a pandemic.

Conducted a safety confirmation drill at the head
office of SUMINOE Co., Ltd.
Conducted a BCP drill at the Head Office.
Formulated the guidelines for working from home tobe implemented during a pandemic.

A

Implemented awareness-raising activities regarding
intellectual property rights (through the in-house
intranet, five times a year).
* By distributing the Intellectual Property News [Rate ofplans implemented :100%]

A

Revised the information management regulations andthe information equipment management regulations.
Held meetings to explain about the reinforcement oftrade secrets management, the scope of confidential
information, and management rules.
Re-established the conditions for setting passwords
for information terminals.

A

FY2020 targets

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

Provide information security
education (security of
information terminals andpersonal information protection).

Revise the information management regulations andestablish the information management system.
Reaffirm confidential information.
Hold study meetings regarding trade secrets.
Provide information security education at training bylevel.

Carry out awareness-raising
activities to prevent insider trading.

Implement awareness-raising activities regarding
insider trading.

Revised the insider trading prevention regulations.

Aー

Promote quality improvement
Quality
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 quality improvement activities(activities to reduce the percentage of defective
products and losses due to defective quality).
Continued to implement activities to share theinitiatives regarding chemical substances regulations.

Aー

Appropriately respond to
Customersatisfaction customers and share customer
improvement service experience
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.

The Customer Service Center received 2,935
inquiries/complaints. Among them, inquiries about
products, standards, prices and functionality accounted
for 15% (428 cases), and complaints accounted for 2%(62 cases). Regarding complaints, after classifying theircontents and analyzing their causes, we will utilize theresults for the next time we develop 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, andpublish the summary on the Company’s website
without delay.

Held the financial results briefings twice a year inTokyo and Osaka.
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.

Formulated the Medium- to Long-term Management
Targets “SUMINOE GROUP WAY 2022-2024-2027” andannounced these targets in July 2021.
Published the ESG Report, which compiles our
ESG-related activities, in May 2021.
RUNON CO., LTD. held online workshops on productinstallation and other topics.
Set up a Suminoe Textile booth at MEDICAL JAPAN 2021
Osaka (7th Int’l Medical and Elderly Care Expo Osaka).
Set up a Suminoe Textile booth at the 89th Tokyo
International Gift Show Spring 2020.
Organized the exhibition “History of Woven Carpets of
Suminoe Textile Co., Ltd” at Tokyo Showroom.
SUMINOE Co., Ltd. held the 2020 SUMINOE Online
Exhibition on the website.

A

Promote social contribution activities.

Continued local contribution activities andenvironmental protection activities. The actual
implementation was confirmed at five operation sites.

B

Targets were set under the Eco Challenge 2021 action
plan.

Reduced emissions of CO2 energy consumption, but
fell short of the reduction target.
Achieved the improvement target for the rate of useof recycled materials.
Did not achieve the reduction target for the amountof industrial waste generated (as compared with fiscal
2019, in terms of basic unit).

B

P.32
Information
securityーA

B

Carried out disaster drills.
Disaster drills were implemented on the web (in the
Head Office building) to prevent the spread of
COVID-19 infections. [Rate of plans implemented: 100%]

Major theme

Occupational
health and Provide care to maintain thehealth of employees.
safetyP.31~32

Ratio of new female graduates hired: 41%
Dispatched four female employees to participate in the
21st Century School and the manager training programof the Women’s Empowerment Support Forum.
Publicized the active roles played by female employees
through the CSR report.

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

Priority
item

P.30

P.32

Risk management

Governance and compliance
Operating practices

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

CSR Related
category page
Safety, disaster prevention, and health

FY2020 targets

Corporate
governanceー

Selfassessment

Major theme

Consumer issues / Social contribution management activities

Priority
item

Environment

CSR Related
category page

P.6
~8

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

P.39

Socialcontribution
activities

P.40
~45

Reduction ofenvironmental
impact from Prevention of global warming
business
activities

Contribute to the local communities.
Carry out social contribution
activities relating to environmental
protection.

Suminoe Textile Group CSR Report 2021

26

Foundation that Supports GrowthG

Governance
Governa
an
an
nce
ce

Enhancing Governance
Establishing a Trustworthy Corporate Foundation—Fair
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 System
To secure the soundness and efficiency of management, we havebeen appointing outside directors and strengthening the functionof the corporate auditor system. The Board of Directors functions asa body for making management decisions in a speedy and agile
manner and for overseeing the status of business execution. The
Company has also introduced an operating officer system, underwhich operating officers are held responsible for business execution.
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

Board of Directors
The Board of Directors comprises nine directors (including four
outside directors) and supervises business execution and makes
decisions on important matters.

times a year at the Head Office of Suminoe Textile Co., Ltd. At thesemeetings, the Committee members make decisions on the policies
for CSR-related activities, deliberate on each subcommittee’s
activity plans, and confirm their progress.
They are also engaged in discussions on the medium- tolong-term recurrence prevention plan and check its progress. In sodoing, the Committee works to enhance governance andcompliance.
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.

Board of Corporate Auditors
The Board of Corporate Auditors consists of three auditors(including two outside auditors). The Board decides auditing
policies and plans and deliberates on audit reports.
Nomination and Remuneration Committee
The Nomination and Remuneration Committee is set up as an advisory
body to the Board of Directors. The Committee aims to strengthen its
oversight function by improving transparency and objectivity in theevaluation and determination processes concerning the nomination
and remuneration of the members of the Board of Directors, thereby
further enhancing the corporate governance system.
The Committee membership comprises five directors selected bya resolution of Representative Directors, independent outside directors

and the Board of Directors. The majority of the membership should beoutside executives, including independent outside directors.
Management Meeting/CSR & Internal Control Council
A Management Meeting is held every week, in principle, to reportand deliberate on important management matters. Matters ofparticular importance 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.
Meeting of Operating Officers
The Meeting of Operating Officers comprises President andoperating officers of Suminoe Textile Co., Ltd., and holds its meeting
once a month. At the monthly meeting, the decisions made bymeetings of the Board of Directors or by the Management Meetingare announced, and reports are made on the present status ofbusiness execution by each operating officer.

Corporate Governance and CSR Promotion System
Management

General meeting of shareholders
Selection/dismissal

Selection/dismissal

Board ofCorporate Auditors

Board of Directors
9 directors

3 auditors(including 2 outside
auditors)

Selection/dismissal

Audit(including 4 outside
directors)

Nomination andRemuneration Committee

Selection/dismissal and supervision

Ichizo Yoshikawa Teppei Nagata

Hiroaki Usugi

Toshiro Maruyama Eiichiro Kimura

Kiyokazu Ichikawa

ChairmanPresident
General Manager,
Interior Textile Business
Headquarters

Managing Director
General Manager,
Administration
Headquarters

Director
General Manager,
Automotive Textiles
Business Headquarters

Director
General Manager,
Development
Department
Representative Director,
Suminoe Techno Co., Ltd.

Corporate Auditor

Haruo Shimizu

Kohei Nomura

Koichi Makino

Yumiko Oida

Atsuhiro Sonoda Takafumi Katayama

Outside Director
Outside Director (incharge of Audit
Committee), Bando
Chemical Industries, Ltd.
Outside Director,
Ashimori Industry Co., Ltd.

Outside Director
Representative Attorney,
Nomura & Partners

Outside Director
Senior Operating Officer,
Takashimaya Co., Ltd.

Outside Director
Director, BRAIN Co., Ltd.

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

CSR Promotion System
Cooperation

Accounting auditor

Cooperation

CSR Promotion Committee

Representative
Directors

Management
Meeting

CSR & Internal
Control Council

Compliance & Risk Management
Subcommittee(whose tasks include personal
information management)

Audit
Central Health and Safety Subcommittee

Meeting ofOperating Officers

Cooperation

Direction andsupervision

Human Resource (Development
and Health) Subcommittee

Consultation
services foroverseassubsidiaries

Environmental Promotion Subcommittee
Product Liability (PL) Subcommittee

Internal Auditing
Department
Audit

27

Suminoe Textile Group CSR Report 2021

Respective
departments, Head
Office, and Group
companies

Corporate
EthicsHotlineFinancial Control Committee

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

Suminoe Textile Group CSR Report 2021

28

Foundation that Supports GrowthG

Enhancing Governance

Governance Establishing a Trustworthy Corporate Foundation—Fair and Sound Management

Ensuring Compliance

Compliance Education
Repeatedly Conducting Awareness-Raising Activities forEnhancing Corporate Governance and 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

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. This fiscal year, weorganized a workshop for the Hokkaido Block of the North Japan
Branch, SUMINOE Co., Ltd., which is one of the Group’s InteriorBusiness Headquarters, with 30 trainees participating. At theworkshop, explanations were given about the risks underlying theirwork and the misconduct risks, citing many examples from theviewpoints of compliance in the sales department. These trainees
shared their awareness of the importance of compliance and thesignificance of a sense of ethics.

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 2017is used as a tool for lectures oncompliance, which are continuously provided for employees
at the time they enter the company and training by level.
English and Chinese versions of the Guidance were distributed to employees of overseas Group companies. Employees are also encouraged torecite the Code of Conduct inunison to help foster theirawareness of compliance.
Poster on which the Code of
Conduct is printed

Compliance Guidance(Japanese, English and Chinese versions)

29

Suminoe Textile Group CSR Report 2021

Employees receiving compliance education (Hokkaido Block of SUMINOE Co., Ltd.)

Compliance training session held both face-to-face and by video conferencing

Whistleblowing System
Announcing Whistleblowing Contact Points andEncouraging Their Use
We have established the Corporate Ethics Hotline as awhistle-blowing system covering the entire Group. We encourage
employees to use the Hotline to submit a report should they findincidences of violation of laws and regulations or corporate ethics.
The Corporate Ethics Hotline Management Office serves as thein-house contact point for whistleblowing. For consultation outside
the Company, employees may use an outside attorney’s office, anexternal contact point exclusively for consultation on harassment,
and outside health consultation services. All Group employees arenotified of and encouraged to use these contact points on occasionsof in-house training 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

2019

2020

Corporate Ethics Hotline

1

1

Outside attorney

10

Implementing Compliance Training for Officers

Health consultation service (consultation on harassment)

2

2

The Suminoe Textile Group conducts daily operations with fairtransactions in mind, aiming to grow as an enterprise trusted by our
suppliers. This fiscal year, we implemented a compliance training
session for officers, with a lawyer invited as the lecturer. The training
theme was “Cartels and Bid-riggings,” which are among theprohibited acts prescribed in the Anti-Monopoly Act. Corporate
officers are obliged to monitor and supervise employees to prevent
them from being engaged in unreasonable restraint of trade and toestablish the system for these purposes. This training provided
officers opportunities to collect information on the recent trends
and legal revisions concerning the Anti-Monopoly Act while
recognizing anew the importance of fair transactions. The Groupwill continue these efforts to ensure fair business transactions in the
future.

Harassment consultation contact point

0

0

Total

4

3

Fair Trade

increased by 0.13 points. The survey results also indicate an annual
improving trend in terms of the appropriateness of working hours,
overtime pay, and the ease of application for leave. As for questions
regarding “staying in the same job too long” and “promoting
women’s empowerment,” we saw only slight improvement as in theprevious years. We will take continuous measures to address theseissues as primary themes to revitalize human resources.
The 2021 survey asked respondents to write free comments in
answering questions about “compliance,” “workstyle reforms,” and“information sharing and communication.” We were able to compile
many opinions and issues, partly because of the changes in thequestionnaire compilation method. Many comments were
submitted regarding working from home and staggered working
hours, both of which are systems that have been temporarily
implemented during the COVID-19 pandemic. To develop better
work systems in the future, we will discuss what these systems
should be and how to evaluate them.
A summary of the questionnaire results is reported to theManagement Meeting, the Meeting of Operating Officers, and the
responsible personnel in each department. The summarized results
are also made accessible to 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
not included 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
2020
10.5％

2021
9.2％

22.1％

24.8％

20.1％
20.2
18.8％

48.5％

Questionnaire Survey on Workplace Comfort(In-house Employees’ Opinion Survey) 2021
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. The
survey results are compiled to assess the progress of CSR activities
and utilize the results for future initiatives.
In this year’s survey, general employees who agreed with thestatement “I feel strongly that I want to work at my present
company for a long time” increased by 0.04 points from the previous
year, and their supervisors who agreed with the same statement

45.9％

2.82*

2.86*

I find my present work rewarding
2020

2021

6.5％

6.8％

16.9％

15.5％
21.3％
22.9％

55.1％

2.80*

55.1％

2.82*

* Index based on a scale of 4

Suminoe Textile Group CSR Report 2021

30

Foundation that Supports GrowthG

Enhancing Governance

Governance Establishing a Trustworthy Corporate Foundation—Fair and Sound Management

Risk Management
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 infinancial 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 arereported to members of the Management Meeting. In
implementing internal control, offices/factories in Japan have
reduced risks to a certain level. We will henceforth promote theintroduction of information technology (IT) to establish asystem to mitigate each risk even further.

Risk Management at Overseas Subsidiaries
SPM Automotive Textile Co., Ltd. (SPM) in China has conductedrisk management activities each year to identify risks and make
improvements to mitigate them. In its eighth year of these
activities, SPM is focusing on “Improvement of costcompetitiveness” this fiscal year. To address risks related to thistheme, the company has formed groups, each of which works
on specific tasks, such as “improving processing efficiency” and“reviewing procured materials.” Respective groups are headed
by selected persons in charge. In their departments, these
persons hold discussions to identify issues requiring
improvements, based on which their targets are established.
Every month, each group closely examines its activity results,
and if they fall short of the targets, it will consider if there are any
additional issues requiring improvements. In doing so, SPM
strives to produce results more securely and attain their risk
management targets.
In addition, SPM is in the process of introducing a new
production management system designed to facilitate risk
reductions, with the system concurrently being introduced into
PT. Suminoe Surya Techno (SST) in Indonesia. As is the case at
SST, the new system is expected to reduce risks at SPM primarily
through improving inventory management accuracy andstrengthening internal control. The system will also lighten
employees’ workload by linking its data with those of thefinancial accounting software and the fabric inspection system,
both of which have already been introduced.
We will continue effective and efficient risk management
focused on high-risk areas at overseas subsidiaries.

ISRP (Information System Reengineering
Project)
Promoting 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.
This fiscal year, we have revised the conventional
production management system package into a system withmanagement functions specifically tailored to the textile
industry. At present we are working to apply the new system toother operation sites in a simple and smooth manner.
In Japan, this new system has been in operation since
February 2021 at the Traffic Facilities. We can see some positiveeffects, such as the visualization of order status and reduction infaxes through the effective use of data in the system that also
covers textile factories. The procurement department of
Suminoe Teijin Techno Co., Ltd. has entered the detailed design
stage after completing requirements definition (the task ofclarifying the necessary functions and requirements andputting them together). The department is making a detailed
design, aiming to construct a system including the visualizationof commercial warehouse and future inventories, toward theintegration of production and sales functions in view of the
future establishment of a sales support system and its
application across the Group.
Overseas, this new system is being introduced into PT.
Suminoe Surya Techno (SST) and SPM Automotive Textile Co., Ltd.
(SPM). Now that requirements definition has been completed,detailed designing is currently under way. As for SST, its progresshas been significantly affected by the COVID-19 pandemic, which
prevents us from facilitating the introduction process of thecompany face-to-face, creating an unpredictable situation.
Nevertheless, we have started an on-site operational test at SST by
explaining to the local employees about how to operate the new
system using a video we had newly created. Through suchmeasures, we are working with SST local personnel to ensure thatthe new system will go into full-scale operation after a two-month
period for parallel running of the current and new systems.

Intellectual Property Management Efforts
Promoting Understanding and Awareness ofIntellectual Property Rights
Intellectual property rights include patents, utility model rights,
design rights and trademarks. Since each of them has different
protection targets and periods, you should choose the mostappropriate intellectual property right for the assets you aregoing to protect. For this reason, we strive to raise awareness

31

Suminoe Textile Group CSR Report 2021

and promote understanding of intellectual property rights
among employees.
For new employees, we introduced the intellectual
property rights used in their surroundings and gave
explanations on the Company’s examples where these rights
are utilized. In addition, at regular technical meetings held
between the Nara Factory and the Head Office, we present
related patent information and topics on intellectual property
rights, such as partial amendments to the Patent Law andeffective systems provided under the Patent Law.
We also publish the Intellectual Property News on thein-house intranet as part of our efforts to provide intellectual
property education for employees regarding how to use andprotect trademarks, the registered trademark symbol (®), etc.
Going forward, we will work to continuously conduct
intellectual property education in order to protect the rights totechnologies of the Group.

Technical meeting held at the Head Office, both face-to-face and online

Trade Secret Management
Strengthening the Trade Secret Management System
by Revising the Regulations
It is said that while various companies attach importance toinformation security, there is a growing risk of leaking trade
secrets* due to the prevalence of working from home.
The Suminoe Textile Group has also introduced
teleworking as part of its measures to prevent the spread of
COVID-19 infections. On top of this, the amount of electronic
data on trade secrets has been on the rise each year. It istherefore urgently needed for the Group to strengthen its trade
secret management system.
To cope with such situation, we revised some regulations
relating to trade secrets. Prior to making the revisions, theCompliance & Risk Management Subcommittee invited
opinions about the future management system from
employees of respective departments, including those of Group
companies. The aim was to reflect the opinions collected fromindividual workplaces in our initiatives to strengthen trade
secret management while taking into account work efficiency.
Meanwhile, we provided explanations about theserevisions by holding face-to-face and online sessions to remind
employees of the importance of trade secret management andensure that all employees are aware of the new regulations.
The Group will continue its activities to reinforce its trade
secret management.
* Trade secrets: Technical or business information that is kept secret and useful forbusiness activities

Progress in Preparation of BusinessContinuity Plans (BCPs*)
Implementation of Personal Safety Confirmation Drills
In the event of a disaster, disseminating information tocustomers speedily and accurately is key for us to maintaincustomer trust as a company. Based on this idea, our Group has
been working to establish its business continuity plans (BCPs),
focusing on collecting information, such as that on 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 thepersonal safety of employees following the in-houseemergency contact rules, with particular emphasis on
ascertaining how to behave in an emergency. On September 3,
2021, the Company carried out a personal safety confirmation
drill, and the emergency headquarters were able to swiftly
confirm the safety of all employees.

Face-to-face and online explanatory session* 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.

Suminoe Textile Group CSR Report 2021

32

Foundation that Supports Growth

S

Initiatives for Society

SocialPersonal Growth of Employees—Creating a Working Environment Where Each andEvery Employee Can Demonstrate His/Her Best Performance

The Suminoe Textile Group considers that human resources are thesource of sustainable corporate growth and that it is important toenable each and every employee to demonstrate his/her best
performance and grow further.
For example, Owari Seisen Co., Ltd., which accepts foreigntechnical intern trainees, is striving to create a working environmentthat is comfortable for them by such means as providing translation
dictionaries and translation machines at their workplace andpreparing handouts and documents posted in common areas(dining lounge, rest rooms, etc.) in multiple languages, including
their mother tongues.
We will henceforth continue to place emphasis on initiatives tocreate 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

2020

2021

Male
FemaleMale
FemaleMale
FemaleMale
Female

1,210
569
46.6
41.9
15.8
12.1
19
14

1,156
544
47.4
43.5
16.6
12.5
10
7

Percentage of employees with disabilities (%)

1.26

1.71

Percentage of female managers* (%)

11.4

11.1

Number of employees
Average age
Average years of service
Number of new graduates hired* Percentage of female employees whose positions correspond to section chief orhigher at the Group companies in Japan

Human Resource Development
We have formulated an education curriculum for all Group
employees. The curriculum comprises various programs, which are
categorized into training by level, role training, and selective training.
At Suminoe Textile Co., Ltd., new employees are required toreceive collective training and online training for one month after
joining the Company and then take OJT* between May to
September. The Company regards those who are in their third year orless of employment as young employees. Their department director
and the person in charge of their OJT draw up a three-year training
plan for new employees and coach them according to the plan.

33

Suminoe Textile Group CSR Report 2021

Training system / Number of trainees
Training by level, role
training, and selective
training (for skill
improvement)

Respect for Diversity

Item/sex/fiscal year

Number of employees taking training

Selective training(for self-development)(FY2020)

Total

Male

FemaleOnline training

164

111

53

Collective
training

16

13

3

Correspondence
course

119

87

32

25

19

6

1

1

0

Languagetraining(online)Languagetraining(in-person)

TopicsConducting Online Training for
Skill Improvement
We held an online training program on MS Word and Excel,
which are useful in work efficiency improvement, inviting
instructors outside the Company. The program consisted ofmorning and afternoon sessions with different contents sothat participants could select either one. This selective
system enabled trainees to learn about the content that wasmore necessary for them. The training program received
many applications from Group companies both in Japan andabroad. It was held with 81 participants in the morning
session and 62 participants in the afternoon session. Many
participants pointed out the online program’s uniqueadvantages, saying that “The program was good because no
travel time was needed” and “I was able to better
concentrate on the training at home than at my workplace.”

Holding Interviews with Employees for
Fostering Next-generation Leaders
Suminoe Textile Co., Ltd. held “interviews for fostering
next-generation leaders” with six young employees who were in
their sixth year of employment. By incorporating opinions fromthe Third Human Resources Subcommittee, an interview washeld twice for each employee. In the first round of interviews,
these young employees designated one of their senior
employees who they wish to hear from. The designated seniors
talked about the troubles, targets, approaches to the job and thelike that they had as young employees. These seniors also told
their present views and gave advice to these juniors. In thesecond round, the Human Resources Department Director
interviewed the young employees on their present work andfuture career for about one hour.
These interviews provided the young employees with
opportunities to talk in person or online with their senior
employees and the Human Resources Department Director,
who may be in remote areas and with whom they usually havelittle contact. Asked about their impressions of the interviews,
some of these young employees answered “I had a valuable
experience that enhanced my motivation” or “I was refreshedsince I could sort out my thoughts and feelings by speaking
about how I felt about my job.” Their senior employees madecomments such as “The interview was stimulating and gave mea good opportunity to reflect on myself” and “I was happy to feel
connected with my juniors since I have few opportunities tointeract and exchange views with other employees of a similar
generation.” Accordingly, we found that these interviews were
beneficial for both the young employees and their seniors. In
addition, the Human Resources Director stated: “It was a
precious experience for me. I would like to keep on serving as a‘human resources director who is walking around’ in the future.”
In the next fiscal year and onward, we will continue to holdinterviews with young employees and intensify our efforts toestablish a system that helps young employees reaffirm theirown goals and that supports their personal growth.

Participant’s Impression of the Training

Ryoya Tada
Osaka Traffic Sales Group
Traffic Sales Department
Suminoe Textile Co., Ltd.

I found the program content immediately useful in my daily
work, and the lecture was delivered in a careful andeasy-to-understand manner. I was therefore able to deepen
my knowledge despite the short time. If given a chance, I will
be willing to attend this kind of skill improving program in
the future so as to increase my work efficiency.

Supporting a Balance between
Career and Family LifeTo encourage male employees to take childcare leave, the Groupannounces the regulations on this leave to the applicable male
employees and their supervisors. This fiscal year, the Group saw its
first three male employees take childcare leave. Aiming to increase
the number of these employees, we will continue the ongoing
efforts to support employees in striking a balance between careerand family life and to create comfortable workplace environments.
Number of employees who used childcare/family care
supporting systems (Group companies in Japan)
Item/sex/fiscal year
Childcare leave, etc.

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.

TopicsFamily care leave, etc.

* OJT stands for on-the-job training, which means occupational education that isdelivered while employees are performing practical tasks at their workplaces.

Respect for Human Rights

Number of employees who
took childcare leave
Number of employees who
returned to work afterchildcare leave
Number of employees who
reduced working hours
Number of employees who
advanced/postponed work
start/finish times
Number of employees who
took family care leave
Number of employees who
reduced working hours
Number of employees who
advanced/postponed work
start/finish times

Male
FemaleMale
FemaleMale
FemaleMale
FemaleMale
FemaleMale
FemaleMale
Female

2019

2020

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

3
12
3
11
0
17
0
5
2
2
0
0
0
0

Occupational Health and Safety
Management of Working Hours
Promoting Measures to Remedy the Issue of Long Working Hours
The First Human Resources Subcommittee, established under the CSR
Promotion Committee, regularly reviews current employees’ working
hours, and based on the results, it holds discussions on improvement
measures to reduce these hours. Working from home is more likely tolead to longer working hours. Moreover, teleworking makes it difficult
to accurately grasp how employees manage their working time. To
come up with solutions to these problems, we will hold discussions
and continue the ongoing measures to grasp employees’ starting andquitting times as well as teleworking hours and to issue messages on
no-overtime days. We will also strive to remedy the issue of long
working hours by holding interviews with employees who tend towork long hours and their supervisors and by other means.

As for the use of paid leave, the rate of employees using
paid vacation days increased from the previous fiscal year.
Use of paid leave (in Group companies in Japan)
Face-to-face “interview for fostering next-generation leaders”

Item / fiscal year

2019

2020

Use rate of annual paid leave (%)

56.6

59.4

Suminoe Textile Group CSR Report 2021

34

Foundation that Supports Growth

S

SocialInitiatives for Society
Promotion of Occupational Health and Safety in the Suminoe Textile Group

About the Occurrence of a Serious
Accident
In December 2020, an occupational fatal accident occurred at the
Shiga Factory of Suminoe Techno Co., Ltd. Taking this accident seriously,
we are making Group-wide efforts to promote occupational healthand safety activities to prevent the recurrence of similar accidents.

Suminoe Textile Group
Safety Declaration
The Suminoe Textile Group stipulates that “We give the highest
priority to securing people’s safety and health in all the processes ofall business activities” in Section 4 “About securing a safe and soundworkplace” of Chapter 2 in its Code of Corporate Behavior.
Also, in Item 1 “Elimination of occupational accidents,” the Group
sets out as follows: People’s safety and health are irreplaceable. To
eliminate occupational accidents, it is a fundamental prerequisite tocomply not only with laws and regulations but also with in-house
regulations regarding health and safety. We provide thorough healthand safety education in order to ensure that all employees stick tothe basics in carrying out day-to-day operations and to enhancetheir risk prediction sensitivity.
In response to the fatal occupational accident in December
2020, we reaffirm the necessity of making sure again that all
employees fully comply with the Suminoe Textile Group Code ofCorporate Behavior stated above. We will make all-out effort toensure that all employees in all job categories in the Suminoe Textile
Group adhere to the three principles of safety: 1. Keeping theworkplace tidy and organized; 2. Inspection and maintenance; and 3.
Strict observance of standard operation procedures.
We take a safety-first policy. Safety is the first and foremost priority.

Health and Safety Policy and
Safety Code of Conduct
On June 1, 2021, the Central Health and Safety Subcommittee
formulated the Health and Safety Policy and the Safety Code of
Conduct, both of which are shared across the Group.
The Subcommittee also established and announced the“STOP6: 18 ironclad rules to prevent serious accidents,” whichsummarizes measures to be shared by all the Group companies toprevent serious accidents. With the full participation of all members,
we are promoting health and safety activities to prevent
occupational accidents before they occur.

Progress in the Occupational Healthand Safety Initiatives

Announcing Health and Safety Materials to
All Employees and Updating Health and
Safety Education Materials

The Group’s Central Health and Safety Subcommittee holds meetings
twice a year, bringing together persons in charge of promoting
occupational health and safety at Group companies, to exchange views
about prevention of occupational accidents and report on the activitiesof each company. This year, although both the number of occupational
accidents and the number of lost-worktime injuries decreased, a fatal
occupational accident occurred. We will intensify our efforts to create anaccident-free work environment by strengthening risk assessments.

Publicizing what should be observed by employees intheir workplaces and providing them with knowledge on
health and safety

Change in the incident rate* of Group companies in Japan
Suminoe Textile Group Health and Safety Policy“Safety First”—the first and foremost priority is safety.
The Suminoe Textile Group regards “safety” as the most important
theme. Giving the highest priority to securing people’s safety and healthin all processes of all its business activities, the Group works to prevent
occupational accidents and create a comfortable working environment.
Suminoe Textile Group Three Principles of Safety
Keeping the workplace tidy and organized
Inspection and maintenance
Strict observance of standard operation procedures
Suminoe Textile Group Safety Code of Conduct
Top management always takes the initiative in improving thesafety culture and sets a good example for employees.
We build up a workplace climate of safety first.
We comply with applicable laws and regulations and the in-house
regulations.
We aim to improve the work environment with the participation of
all employees.
We take proactive measures to ensure safety by predicting
potential risks.
We conduct safety education and drills.
Suminoe Textile Group Safety Target
Completely eliminate occupational accidents.

(Incident rate)
8

6

All Group companies in Japan (Lost-worktime injuries & non-lostworktime injuries)
Average for the industry (Lost-worktime injuries)
All Group companies in Japan (Lost-worktime injuries)
6.33
5.99

To raise employees’ awareness of safety, boards bearing safety precautions are set up at each workplace, and health and safety materials are disclosed to all employees. Also, Suminoe Techno has updated its health and safety education materials to provide instructions
regardingcompliance with
relevant rules andthe responses to betaken when a problem occurs.

4.98
4

3.35
3.40
2.00

2

0

2.00

2.35

1.33

1.15

1.02

1.20

1.20

1.02

2016

2017

2018

2019

2020 (Fiscal year)

1.21

Source: 2020 Workplace Accident Trend Survey, Ministry of Health, Labour and Welfare* Incident rate: Accident frequency, measured as the number of deaths andinjuries caused by industrial accidents per million working hours

Activities of Suminoe Techno Co., Ltd.
Reinforcing the Health and Safety Promotion System
Clarifying the system and roles regarding occupational
accident prevention activities
The Health and Safety Committee has conventionally been inspecting
the dangerous spots and conducting activities to prevent occupational
accidents. Learning lessons from the accident in December 2020,
Suminoe Techno strives to reinforce its promotion system by clarifying
the respective roles and objectives of the Workplace Executive
Committee, subcommittees, and the Health and Safety Committee.

Health and safety education materials

Conducting the Questionnaire Survey on
Safety Awareness of Employees
To promote health and safety activities incorporating opinionsof employees and confirm the progress in these activities
In March 2021, after providing health and safety education, thecompany conducted a comprehension test and the Questionnaire
Survey on Safety Awareness of Employees. The objectives of thesurvey are to reflect opinions from employees in the future healthand safety activities and to utilize the results to improve theirawareness of safety. Suminoe Techno plans to carry out this survey
every year in order to encourage employees to be always aware ofsafety and enable management to grasp the changes in safety
awareness of employees.
Results of the Questionnaire Survey on Workplace Safety
Awareness (Examples)■ Agree.

Management of Health and Safety Materials
Using the In-house Intranet■ Somewhat agree■ Somewhat disagree.

■ Disagree

Management has a high degree of interest in health and safety.
24.5%

Monitoring the activity progress by systematic datacompilation and updating records

Poster of the Suminoe Textile Group’s safety slogan(put up at production sites in Japan and overseas)

Poster to promote measures to prevent serious accidents classified by typeTo unify the management of the company’s health and safety
activities, the Health and Safety Committee takes the lead inpreparing relevant materials, which have been made accessible
through the in-house intranet. The latest materials as well as materials
showing the progress in health and safety activities are posted on theintranet. Suminoe Techno also discloses information that other Group
companies can use as a reference for their health and safety activities.

41.5%

26.9%

7.1%

26.8%

8.3%

We are safety-conscious and always place priority on safety.
19.3%

45.7%

All of us are made well aware of work-related laws and regulations.
15.0%

46.1%

33.1%

5.9%
We follow instructions of supervisors and observe the applicable regulations and safety rules.
22.9%

54.2%

19.8%
3.2%

35

Suminoe Textile Group CSR Report 2021

Suminoe Textile Group CSR Report 2021

36

Foundation that Supports Growth

S

SocialInitiatives for Society
Personal Success of Employees—Creating a Working Environment Where Each and Every Employee
Can Demonstrate His/Her Best Performance

Senior Employees Playing Active Roles

Promoting Women’s Empowerment
This section reports on the progress made in the Women’s Empowerment
Promotion Plan.
1. Planned period: June 1, 2020 – May 31, 2022
2. Targets and progress
Target 1

Target 2

This fiscal year, staggered working hours and working fromhome helped employees strike a balance between careerand family life, so many employees hope for the continuationof these systems in the future. Although these systems werecommenced as temporary measures to prevent the spreadof novel coronavirus infections, we will consider making
provisions for these systems.

Ratio of new female graduates hired
Suminoe Textile Co., Ltd.: 35% or more (administrativeand sales staff, and technical staff )SUMINOE Co., Ltd.: 40% or more (administrative/sales staff)

New graduates hired (2021)
Suminoe Textile Co., Ltd.
Target（％）

SUMINOE Co., Ltd.
Result50

Target 3
Target（％）

Result50

40

35 33.325

25

0

No new graduates
hired in fiscal 2021.

0Administrative, sales,
and technical staff

0Administrative and sales staff

Implementing initiatives to create an environment
where both male and female employs can succeed
while striking a balance between career and family life

Having one or more male employees taking
childcare leave and maintaining the rate offemale employees taking childcare leave at 100%
In 2020, since three male employees took childcare leave,
the Group was able to achieve the target. We also
maintained the rate of female employees taking childcare
leave at 100%. We will continue to actively announce thechildcare leave system and programs to help achieve alife-work balance to applicable employees and theirsupervisors so as to raise their awareness.

Interviews with Female Employees Who Are Actively Working

Voicei
Keiko Nakayama
Procurement Accessories Group
Carpet and Accessories Business Division
Automotive Textile Business Headquarters,
Suminoe Textile Co., Ltd.

What, specifically, does your present work involve?
I am in charge of administration of the import and export of automotive
accessories. My main jobs are preparing and checking documents,
performing various application procedures, and scheduling withpersons inside and outside the Company. I have deadlines to meet,which require many complicated paper procedures. However, I am
working hard to ensure smooth transactions.
I have many opportunities to use my foreign language ability. I also
enjoy acting as an intermediary or a coordinator between suppliers andthe Company to facilitate smooth trading. This has enhanced mycommunication skills. Another attractive feature of my work is that I can
improve myself while making effective use of specialist skills.
Workplace where I can feel job satisfaction
I hoped to continue working after marriage and childbirth.
Now I use the reduced working hours system since I have a longcommute and my children are still small. The use of the teleworking
system is also very helpful in maintaining a good work-life balance, so I
appreciate it.

37

Suminoe Textile Group CSR Report 2021

Despite reduced working hours, I am entrusted with not supportive
but responsible work, which makes me feel satisfied and motivates me
to continue working. Although I sometimes face difficulties and a lack oftime, my coworkers offer me cooperation and understanding. I therefore
always strive to accomplish my tasks.
Striking a proper balance between work and family life
After having a child, I came to think more deeply about the effective useof time.
If my child is not well, I sometimes have to suddenly take a day off
from work. As such, I am conscious of efficiently doing work by sortingout my priorities. To complete all my jobs within the working hours, I
make it a rule to list what I should do tomorrow before leaving work toensure that I can quickly start working the next day.
As for childrearing, I devote all my energies into caring for mychildren while spending time with them to compensate for my longhours of absence from home. Now I make a daily habit of eating
breakfast together with all my family members. I also talk with myhusband about our children every night to share our anxiety and stressabout childrearing. I think it is good for both of us to have many
discussions so that we cooperate with each other. Since my health cansignificantly affect my family, I know it is particularly important toregulate my daily life by keeping early hours.
For now, I am groping my way forward. However, I will do my best
to further improve my skills, thereby achieving better results incooperation with my family and those who work with me.

Voicei
Akihiko Terashita
Chief, Tuft Section, Production Department
Suminoe Techno Co., Ltd.

Looking back on my career to date since I joined the company
Just after joining Suminoe Techno, I was assigned to the Tuft Section. Since
then, I have been committed to my work on manufacturing floors. In mylong career with the company, I have mostly worked in the Tuft Section.
However, for about three years, I was also engaged in handling ofoutsourcing affairs, which involved visiting cooperative companies tonegotiate prices and delivery dates. I undertook this duty 20 years after
joining the company, and it took a long time getting used to jobs in a
totally different field for me. However, I managed to do the work with a lotof help from my coworkers and my wife. I am very thankful to them fortheir generous support. Although I sometimes found it difficult to perform
my duties, it offered me valuable opportunities to talk with people outside
the company, which turned out to be useful in doing my present work.
Now I realize that it was a good experience that led to my personal growth
and that marked a turning point in my career. After returning to the
manufacturing site, I have placed emphasis on educating young employees to hand my techniques down to future generations. Company-wide
efforts are underway to provide education tailored to individual employees in accordance with their respective aptitudes. There have been many
ups and downs, but I am really happy to have entered this company.
What are the things that you think are important in your work?
I think it is important to keep the workplace tidy and organized and tocommunicate with other employees. A tidy and well-organizedworkplace will help ensure the safety of employees and increase work
efficiency. I always do my jobs with the utmost caution to prevent
workplace accidents.
I attach importance to communication because I myself realized that
I could continue working even during the hard times if I could keep good
human relationships. I therefore talk to as many people as I can in theworkplace, choosing the topics that interest them. Since the Tuft Section
has always had a comfortable atmosphere, I feel lucky and thankful.
Message to other senior employees
I would first like to encourage other senior employees to look after theirhealth. Fortunately, I have not suffered from any serious diseases or
injuries to date. I think that an appropriate release of stress is the key togood health. Previously, I used to let the stress out by eating out. However, under the COVID-19 pandemic, now I enjoy the time at home and try
to find various ways to keep in shape.

Message
Eiji Niizaki
Tuft Team, Tuft Section, Production Department
Suminoe Techno Co., Ltd.

Message to Mr. Terashita from a Coworker
Section Chief Terashita plays a pivotal role in the Tuft Section. He is
always cheerful and has a sense of humor. In keeping with thesafety-first policy, Mr. Terashima is powerfully working at theworkplace. I have associated with him for more than 30 years since
I joined the company. I have learned a lot from seeing him hard atwork, so I felt like he was my big brother when we were young.
Now I respect him as a good supervisor.

Introduction of a Local Employee Working at an Overseas SubsidiaryVoicei
Thanunthorn Sena
Suminoe Koide (Thailand) Co., Ltd.
Joined the company on August 17, 2020

Why did you want to join the company?
I decided to become a member of Suminoe Koide since I thought it wasa stable and interesting company. The company also offered me an
opportunity to learn Japanese while working, which was a newexperience that I wanted to try.

What is the key to communicating well with Japanese staff
members?
First of all, I try to be a good listener to accurately understand what theymean. For vocabulary building, I periodically review important words tomemorize them.
What is your favorite place in your country?
I love Chiang Mai, where Suminoe Koide (Thailand) Co., Ltd. is located. The city
is a place with great food and has many famous tourist spots. During winter(the dry season), we usually have beautiful weather and you can enjoy scenic
beauty here in Chiang Mai.

What is good about working for this company?
I have the privilege of working with good coworkers. Thanks to them, I
can enjoy working every day.

Suminoe Textile Group CSR Report 2021

38

Foundation that Supports GrowthFoundation that Supports Growth

S

SocialE

Environment

Initiatives for Society

Initiatives for the Environment
Environmental Management—Under the Slogan of KKR+A
Kenko(Health)Communication with Local Communities (Social Contribution Activities)

Kankyo(Environment)

RecycleAmenityWe, the Suminoe Textile Group, are continuing to work on environmental
conservation activities such as interior environment improvement and utilizationof recyclable materials as well as decreasing our impact on the environment with

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

Accepting Interns
INTEC CO., LTD. accepted interns from Osaka College of Technology
from March 15 to 19, 2021, with cooperation of Kansai LaboratoryCo., Ltd. In the internship program, these interns created their
original leaflet for INTEC CO., LTD. in order to study the relationships
among individuals, a company and society through manufacturing.
On the final day of the program, they were given an opportunity topresent what they had learned in this program. We were pleased tohear their impressions of the program and receive words ofappreciation from these interns.

our fundamental philosophy of “K - Kenko (Health)”, “K- Kankyo (Environment)”,

Participating in the Angel Tree Program
Every year, Suminoe Textile of America Corporation (STA)
participates in the Angel Tree program run by the Salvation Army in
the United States. The Angel Tree Program is designed to connect
disadvantaged children with individuals and companies, offering
these donors opportunities to provide Christmas gifts for children in
need. In December 2020, STA donated Christmas gifts for 75 families
and then received a letter of gratitude with appreciation messages
from the Salvation Army.
In addition, STA has continued other social contribution activities, including making donations to support meal delivery services for people with disabilities,
the elderly and the homeless andgiving candy bags to children’s
homes in the State of South
Carolina.

A letter of gratitude from the Salvation
Army in the United States
Intern’s impression of the program (excerpt from presentation materials)

Fund-raising for Teletón
Suminoe Textile de Mexico, S.A. de C.V. (STM) donated money raised
from its employees to Teletón in December 2020. Teletón is a nonprofit organization in South America, which supports children withdisabilities, runs charge-free rehabilitation centers and raises donations by holding events and broadcasting charity programs. In
return for its contribution, a childusing a rehabilitation center presented STM with a commemorative item (photograph stand). It
was received by the human resources department on behalf ofthe company. STM also works todonate food and everyday items
to Casa de Jesús (the house of
Jesus), a nonprofit organizationthat provides support for disadvantaged children and young
people.

A child handing a photo stand

39

Suminoe Textile Group CSR Report 2021

Participating in the Shinagawa
Terakoya Event
The Tokyo Branch of Suminoe Textile Co., Ltd. has participated in the
Shinagawa Terakoya program organized by the Future Education
Promotion Organization to assist local junior high schools inproviding career education to students. In November 2020, we
visited Shinagawa Ward Ebara Hiratsuka Gakuen, where we gave an
explanation about the details of our work to ten 7th grade students.
They enjoyed hands-on experience of simple interior coordination,with their teacher playing a customer role. After the program, thesestudents expressed their impressions, making such comments as “Itwas difficult to coordinate the interior according to the customer’s
requests” and “This experience motivated me to consider my future
career.”“R - Recycle” and “A - Amenity: Comfort”

Fundamental Environmental Philosophy
Recently deterioration of global environment has rapidly progressing. It is a mission in common among human beings who live 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, and will make a comfortable and rich society with a cooperation of all the employees positively tackling withenvironmental preservation activities.

Suminoe Textile Group “SUMINOE Environmental Declaration”
Declaration1

Declaration

We shall contribute to the improvement of interior
environments and realize comfortable spaces.

Our トリプルフレッシュ® (TRIPLE FRESH) deodorant treatment isapplied to carpets, curtains, wallpaper and automobile interior fabrics
to deodorize unpleasant smells, such as cigarettes, pets, householdodors, 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 andcare-free living space include an anti-allergen treatment called アレル
ブロック®(ALLER-BLOCK), aimed at suppressing allergen activity, and askin-care beauty treatment.
Declaration

2

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

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 fromrecycled PET bottles, a recycling system for carpet tiles in whichused tiles are recollected and recycled into new products,
SUMICUBE® seat cushion material for railway cars boasting highrecycle efficiency, and SE Light simplified raised floor material madefrom PP resin which was recycled from beer cases.

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

5 We shall work on resource and energy conservationfrom manufacturing to the finished 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.

Declaration

We shall provide products that enable the

3 reduction of CO and decrease our impact on
2

the environment.
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.

Shinagawa Terakoya program

4 We shall use safe/secure materials and always

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

shall present and provide products that
7 We
are 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 propose anddeliver products based on such an “eco-design concept.”

Suminoe Textile Group CSR Report 2021

40

Foundation that Supports GrowthE

Initiatives for the Environment

Environment Environmental Management—Under the Slogan of KKR+A

Guideline on Activity

Eco Challenge 2021
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 by developing
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 environment andhave more safety④ Development of product which could improve environment and contribute to health and comfort
We will try to live together with community through close communication and all employees will start action from
whatever one can do.

3
4

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 2021.

Eco Challenge 2021
Eco Challenge 2021 was formulated as a set of goals on environmental protection. Its duration was the one-year period of fiscal 2020,
during which we promoted environmental activities.
■ Affiliates covered by Eco Challenge 2021

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

Suminoe Textile Co., Ltd.
Automotive Textile & Traffic Facilities
Business Headquarters
Suminoe Teijin Techno Co., Ltd.
Teijin Tecloth Ltd.
Factory at the head office of Owari Seisen Co., Ltd.
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.
PT. Suminoe Surya Techno
Suminoe Koide (Thailand) 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.

Management Meeting

CSR & Internal
Control Council

CSR Promotion Committee

Suminoe Textile
Administration
Headquarters

Working Group
Environmental
Promotion
Subcommittee

Automotive Textile
Business Headquarters

Environmental
Management WG

Traffic Facilities
Business Headquarters

Office Management
WG

Functional Materials
Business Headquarters
Interior Textile
Business Headquarters
Development
Department

Interior Textile
Business Headquarter

Functional Materials
Business Headquarters

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

Suzhou Suminoe Textiles
Co., Ltd.
Suminoe Textile Vietnam
Co., Ltd.

Development Department
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 CO2 emissions■ Period:

Fiscal 2020 (One-year plan; data collection lasting between June 2020 and May 2021)■ Activity Goals and Fiscal 2020 Results

Work areas

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.
ISO 14001: 2015
Nara Factory, Shiga Factory

Screening andregistration agency

Japanese Standards Association

Registration number
Registration date

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

TANGO TEXTILE Co., Ltd.

Japan Quality Assurance Organization Japan Quality Assurance Organization

Institute for Promoting
Sustainable Societies

Teijin Tecloth Ltd.

JSAE 235

JQA-EM1519

JQA-EM3114

0009522

May 2000

April 2001

March 2003

July 2013

Registration renewal 7th renewal completed (May 2021) 6th renewal completed (April 2019)41

Suminoe Textile Group CSR Report 2021

Eco Action 21: 2009

6th renewal completed (July 2020) 4th renewal completed (July 2021)

Index

Base FY

Final numerical targets

Evaluation

1

Prevention of global warming

Reduction of CO2 Emissions

2019±0% (Basic unit)△

2

Resources conservation

Increase of utilization rate of recycled materials

2019

1% improvement○

Reduction of industrial waste2019±0% (Basic unit)△

Increase of recycling rateー

65% or more△

Reduction of waste disposal rate via land reclamationー

10% or less△

Reduction of air pollution (reduction of NOx emissions)2019±0% (Basic unit)○

Reduction in amount of PRTR-designated substances handled2019±0% (Basic unit)△

Improvement of green stationery purchase rateー

95% or more

△

3

4

3Rs regarding waste material

Prevention of environmental pollution

5

Promotion of green activities

6

Promotion of LCA assessment for productsー

6 items under LCA○

7

Promotion of development of environment-friendly technologies

ー

1 case○8

Promotion of development of environment-friendly productsー

3 cases○9

Promotion of biodiversity preservation in business activities

ー

ー

ー

ー

Compilation of data for all overseas factories

10 Consolidation of data on environmental impact of overseas factories and reduction of such impact

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

○: Attained △: Not attained at some factories○

×: Not attained

Suminoe Textile Group CSR Report 2021

42

Foundation that Supports GrowthE

Initiatives for the Environment

Environment Environmental Management—Under the Slogan of KKR+A

Eco Challenge 2021 (Fiscal 2020 Results)
To achieve Eco Challenge 2021, our environmental activities were promoted for one year (June 2020 to May 2021), with fiscal 2020 set
as the base year.

Prevention of
Global Warming

Reduction of CO2 emissions

3Rs regarding
Waste Material

Reduction of industrial waste generated/Increase of the recycling
rate and reduction of the waste disposal rate via land reclamation

We are striving to reduce industrial waste generation by minimizing unused materials for our products, by not manufacturing
products that do not pass quality standards, and by using resources effectively. While the amount of industrial waste decreased fromfiscal 2019, the basic unit of industrial waste increased. The recycling rate improved from that of fiscal 2019.
■

Changes in amount of industrial waste generated
Basic unit
Basic unit(kg/¥1 million)50
46.0

Amount of industrial waste generated
(t)
6,000

We assess the impact of our corporate activities on global
warming based on CO2 emissions*.
From fiscal 2012 to fiscal 2019, we used the calorie
equivalent of our energy consumption as the indexes of global
warming prevention activities since the CO2 emission factors ofelectric power companies widely fluctuated in the wake of theGreat East Japan Earthquake. However, in Eco Challenge 2021,
we resumed the assessment based on CO2 emissions.
Since fiscal 2017, when we increased the number ofoverseas factories included in the data compilation from five toeight, CO2 emissions decreased both in Japan and overseas
until fiscal 2020, when we included 11 overseas factories in thecompilation. However, the basic unit of CO2 emissions in fiscal
2020 was higher than that of the previous fiscal year.
* For domestic factories, the amount of CO2 emissions is calculated based onan emission factor set in accordance with the law to promote measuresagainst global warming. For overseas factories, the calculation is based onan emission factor set for each country in the 2006 IPCC Guidelines for
National Greenhouse Gas Inventories.

■ Change in CO2 emissions [including overseas consumption]

Domestic

Overseas

5,000

34.7

Recycling rate

60

61.1

65.9

63.3
56.4

120

0.8

40
20

2,000

3,670

3,394

3,511

3,878

3,666

2016

2017

2018

2019

2020 (Fiscal year)

1,000
0

0.683
100

0.647
0.613

0.628

20

10
0

11.7

10.9

2016

2017

19.0

16.1

19.4

2018

2019

2020 (Fiscal year)

0

0.635
0.6

80

66.9
60

63.8

58.9

0.4

57.4
28.6

22.4

25.2
24.2
0.2

20

36.5

38.3

36.1

Reduction of air pollution (NOx emissions)
Reduction of the amount of PRTR-designated substances handled

50.6

27.7

40

Prevention ofEnvironmental Pollution

32.2

26.4

0

Substances that may pollute air include NOx, SOx, and otherfine particles. NOx is used here as an example to explain thesituation of air pollution. The amount of NOx emissions is
calculated based on the emission factor 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.

0

2017

2018

2019

2020

(Fiscal year)■

Changes in NOx emissions■

33,49836,28435,20930,000

Increased utilization rate of recycled materials

0.6

32,17827,185■ Rate of use of recycled materials

Basic unit
Basic unit(kg/¥1 million)

20

15.2

15.4

17.0
15

13.0

13.6

1,464

1,275

1,341

1,413

1,351

2016

2017

2018

2019

2020 (Fiscal year)

0.4
1,000

0.349

0.371

0.357

0.352

0.341

0.2

500

0

0

2016

（％）

Emissions
Emissions
(t)
2,000

1,500

20,00010,000Changes in amount of PRTR-designated substances

Basic unit
Basic unit(kg/¥1 million)

40,000

2017

2018

2019

10

0

2020 (Fiscal year)

5
0

50

40

37.0

37.3

37.7

37.3

40.1

30

Promotion ofGreen Activities

Improvement of the green stationery procurement rate

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.

20

10

■

Changes in rate of buying eco-friendly office equipment

（％）

100

89.7

87.6

85.2

86.2

86.1

2017

2018

2019

2020 (Fiscal year)

80

0

2016

2017

2018

2019

2020 (Fiscal year)

0

2016

Suminoe Textile Group CSR Report 2021

67.9

30
3,000
Basic unit(t/¥1 million)

Emissions(kg)

43

Rate of waste material buried at final disposal sites

80

40

35.6

Emissions

We are actively using recycled materials for productmanufacturing to promote savings in resources.
We have various products made of recycled materials. For
example, the ECOS® series of recycled carpet tiles produced
using horizontal recycling technology uses recycled fibers スミ
トロン® (SUMITRON) and ECONYL® as well as polyvinyl chloride
powder recycled from used carpet tiles. Another example is theuse of recycled polyester cotton in needle punched carpets.
Through these products, we are encouraging the use ofrecycled resources.
Under Eco Challenge 2021, we checked the rate of use ofrecycled materials at our major factories in Japan.

Changes in recycling rate and rate of waste materialburied at final disposal sites

（％）

42.4

38.2

4,000

Basic unit

Emissions(1,000 t)

2016

Resources
Conservation■

Amount of industrial waste generated

Suminoe Textile Group CSR Report 2021

44

Foundation that Supports GrowthEcEnvironment Environmental Management—Under the Slogan of KKR+A

Promotion of LCA* Assessment
for Products
We have established an LCA system for products and haveconducted in-house assessments since fiscal 2015.
In fiscal 2020, we carried out LCA assessments for 15 items.
* LCA: Stands for lifecycle assessment. LCA is a method to quantitatively
evaluate the resources used to produce a product at each stage of its
lifecycle—from raw material procurement, manufacturing, distribution
and use to disposal— as well as its load on the environment, and also
the potential environmental impact that the product and resources
may have on the Earth and ecosystems.

Promotion of Development ofEnvironment-Friendly
Technologies and Products
Promotion of Development ofEnvironment-Friendly Technologies“Vibration absorption foam sheet” featuring excellent
shock absorbing and lightweight properties
Reducing environmental impact in various situations whereshock absorbing properties are required, e.g., to reducenoise in cars, etc.

Promotion of Development ofEnvironment-Friendly Products
1 “e.colore®

(eco-loré)” denim-like” automotive seatcovering material, an eco-friendly product created in theimage of natural fabric materials
2 “Deodorant, antibacterial and antivirus processedjacquard moquette” for the 17000 Series train on Tokyo
Metro Yurakucho and Fukutoshin Lines
3 “Suminoe FreshTM Filter,” which is a prefilter with various
effects, including antivirus, antibacterial, deodorant andantiallergen functions

Consolidation of Data on
Environmental Impact of Overseas
Factories and Reduction of Such Impact
Compilation of Data for Overseas Factories
In fiscal 2020, environment-related data of Suminoe Textile
Vietnam Co., Ltd. was newly added to the compilation.

45

Suminoe Textile Group CSR Report 2021

Environmental Activities for
Preserving Biodiversity in
Business Operations
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 recycled material
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
2 Activities to seek 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

l

u

m

n

Alliance for the Blue’s Project:
Recycling of Discarded Fishing Nets

Initiatives for the Environment

Eco Challenge 2021 (Fiscal 2020 Results)o—Toward the achievement of the SDGs—
Since 2020, Suminoe Textile Co., Ltd. has participated in Alliance for the Blue* and worked on a project to reduce marine plastic
waste.
According to a survey conducted by the Ministry of the Environment, approximately 6,000 tons of fishing nets have been
discarded each year, and fisheries-related waste, including fishing nets and ropes, accounts for around 30% of the total amount ofmarine plastic waste generated in Japan. Also, a report of the World Economic Forum predicts that by 2050 there could be more
plastic than fish (750 million tons) in the ocean in terms of weight. In this context, the issue of ocean plastic litter has attracted
worldwide attention.
To address this issue, Alliance for the Blue has promoted a project to produce bags using nylon recycled from discarded fishingnets. In the bag manufacturing process, as a project member, the Company has played its role in spinning yarn using nylon pellets
recycled from fishing nets discarded in Hokkaido and then weaving the yarn into a fabric. About 30 years ago, we commercialized
スミトロン® (SUMITRON) polyester yarn made from recycled PET bottles. Our recycling technology developed through thisexperience is effectively applied in this project. Going forward, we aim to utilize the recycled nylon yarn in our Group’s products andalso work together with other companies to commercialize new products made from this yarn.
We will continue our endeavors for “upcycling” of waste materials in collaboration with our partners, in order to contribute to
the realization of a sustainable society from various angles, while helping achieve the SDGs.
* Alliance for the Blue is a general incorporated foundation that promotes activities with the objective of “passing on bountiful seas to future generations byproducing products that protect the bounty of the ocean and by implementing a sustainable system through co-creation between companies and residents. Its
membership comprises companies in various industries, such as petrochemicals, manufacturing of daily goods and packaging materials, retail, and recycling.

Production processes of bags made of
discarded fishing nets
Yamamoto Gyomo(Akkeshi-cho, Hokkaido)

Produces nylon
pellets recycled fromused fishing nets

Collects discarded
fishing nets

Toyooka Kaban

Refinverse, Inc.
Spins recycled nylon
yarn, using spinningmachineProduces fabric

Manufactures bags

3 Social contribution activities

Supporting groups engaging in forestry preservation
activities
Supporting green charity activities

Activity Results
Each factory has been implementing activities making useof characteristics of the region.
<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, as amember of the Ichinomiya Heisei Firefly Association.

Nylon pellets
recycled fromused fishing nets

Mixed
fifty-fifty andthen spun
into yarn

Plain
weave

Yarn containing 25%
recycled nylon
Virgin nylon pellets

Warp: Recycled polyester yarn
Weft: Yarn containing 25%
recycled nylon

Editorial Postscript
Thank you very much for reading our CSR Report 2021.
We organized the information about the Group’s ideas and projects related to CSR activities and expressed them in an easy-to-understandmanner. While we receive growing demands for tackling international social challenges, we are determined to continue steady implementationof CSR activities to become a corporate group to be trusted. In this respect, we would be grateful if you could give us your candid opinions andcomments about the Group’s CSR activities by answering the questionnaire, for future reference.
CSR Report Editorial Team

Suminoe Textile Group CSR Report 2021

46