Foundations for Creating Value

ESG Management
Approach to ESG Management

Identifying ESG Issues

The JSW Group aims to generate sustainable growth and improve corporate value over the medium to long term. To that end,

The table below presents current issues we have identified based on CSR activities to date and the assessments of ESG

based on the spirit of yompo-yoshi, which calls for us to generate benefits across four areas—for customers, employees, society

evaluation organizations. Moving forward, we plan to specify the materialities (material issues) of the JSW Group throughand shareholders—we apply monozukuri (good manufacturing practices) and value creation to form businesses and expand thedeliberation by the ESG Promotion Committee and the Board of Directors.

value we provide.
As such, we recognize environment, social and governance (ESG) issues as management priorities, and engage with themCategory

Issue

Specific Themes for Initiatives

through various corresponding initiatives. These initiatives include environmentally responsible production, development ofenvironmentally conscious products, personnel training that supports sustainable social development and establishment of atransparent management system.

Establishing the ESG Promotion Committee
In April 2021, JSW established the ESG Promotion Committee, chaired by the director responsible for ESG, to drive consistentand effective engagement with ESG issues throughout the JSW Group and horizontally among business divisions. The committee
will lead ESG-related initiatives in collaboration with Head Office divisions, business divisions, plants and Group companies.

Environment

Environmental
Management

ESG Promotion Committee Organization Chart

Board of Directors

Supervise

Report

ESG Promotion Committee
Chair: Director & Managing Executive Officer Junichiro Deguchi(in charge of Promoting ESG)

Climate ChangeCountermeasures

SocialGroup
Companies

Governance

Plants31 JSW Integrated Report 2021

p. 33–34
p. 37∙ Reducing CO2 emissions∙ Enhancing energy efficiency of manufacturing
processes

p. 35–36∙ Improving fuel efficiency and reducing emissionsof products during use∙ Advancing development of cleantech

p. 15–16

Development of
Human Capital∙ Promoting diversity and inclusion∙ Hiring personnel∙ Training and retaining personnel

p. 38–40

Human Rights
and Communities∙ Respecting human rights of all stakeholders∙ Engaging with local communities

p. 40, 42

Occupational
Health and Safety∙ Managing labor issues and employee health∙ Creating safe and secure workplaces

p. 41

Supply Chain
Management∙ Reviewing procurement policies to be sharedwith and adhered to by suppliers∙ Reducing environmental impact in the supply chain∙ Eliminating labor and human rights issues in the
supply chain

p. 42

Responsibility to
Customers∙ Establishing procedures and initiatives to ensure
and improve quality∙ Upgrading recycling and maintenance proceduresp. 43–44

Corporate
Governance∙ Enhancing corporate governance systems
and functions∙ Ensuring Group governancep. 45–52

Risk Management∙ Enhancing risk management systems∙ Ensuring rigorous compliance and anti-corruption
measuresp. 53–54

Information
Security∙ Enhancing information security systems

Do / Action
Business
Divisions

RelevantPage(s)Environmental
Contribution
through Products

Plan / Check

Head Office
Divisions∙ Structuring environmental management promotion
systems∙ Appropriately managing water use and discharge∙ Appropriately managing chemical substancesand determining waste volume

Contribution to
Achieving SDGs

p. 54

JSW Integrated Report 2021 32

Environmental Management

Environmental Policy

Targets and Progress of the Medium-Term Environmental Plan

The JSW Group is committed to being an environmentally responsible corporate citizen. We emphasize environmentally
responsible production and technology as means to support sustainable social development in harmony with ecosystems.

Action Plan1.

 ystematically implement environmental initiatives andScontinuously promote environmental conservation.

Fiscal 2020 Actual Results

Achievement
Level

Maintain ISO 14001 certification ofplants and Nikko-YPK Shoji

Maintained ISO 14001 certification ofplants and Nikko-YPK Shoji◎

40% reduction in CO2 emissions(compared with fiscal 2013)

ー

Improvement of 1% or more inenergy usage intensity

Industrial Machinery Products
Business: Worsened by 13%
Material and Engineering Business:
Improved by 4%(both compared with fiscal 2019)△

Improvement of 1% or more in energy
usage intensity (year-on-year and averagefor the past 5 years)

Promotion of
Resource Conservation
and Recycling

Recycling rate of 90% or higher

Recycling rate of 76%△

Recycling rate of 95% or higher(excluding slag and refractories)

Management ofChemicalSubstances

Determine emission volume ofchemical substances and implement
reporting to local governments
based on the PRTR Law

Determined emission volume ofchemical substances and implemented
reporting to local governments basedon the PRTR Law◎

Improve chemical substance usage
intensity by 1% or more
(year-on-year and average for the past
5 years)

Legal or regulatory violations: 0

Legal or regulatory violations: 0◎

Legal or regulatory violations: 0

Treat high-concentration PCB wasteby the legal deadline (March 2021)

Treated high-concentration PCB wasteby the legal deadline (March 2021)◎

Treat low-concentration PCB waste by
the legal deadline (March 2027)

Issue an environmental report

Issued an environmental report◎

Disclose environmental management
activities in an integrated report

Environmental
Management

Shared Business Site Policies
Business sites set environmental policies, objectives and goals inaccordance with international standards with due considerationof their operations and nearby communities.

	
Set appropriate objectives and targets to reduce2.

environmental impact, including on biodiversity.

(1)	Comply with laws, regulations and JSW Group agreements withexternal entities.

	Provide society with products and services that contribute3.
to environmental conservation.

(2)	Prevent pollution and reduce and properly process waste withdue consideration for impact on ecosystems.

	(1)	Improve the social value of our products in terms of theenvironment, health and safety.

(3)	Use resources more productively by saving energy and by saving
and recycling resources.

	(2)	Provide products and services that reduce environmental
impact by understanding environmental needs anddeveloping technologies.

(4)	Require employees and on-site companies to understand andabide by business site policies.

Environmental Management Structure
Recognizing the importance of conducting its business activities in harmony with both the international and local communities, theJSW Group has been promoting environmental management activities throughout the Group since 1997. The EnvironmentalーPromote Measures
to Curb Global
Warming

Compliance

Maintain existing ISO 14001 certifications

Management Committee, headed by the director in charge of environmental management, determines Group-wide annual
environmental management policies and action plans, and monitors and evaluates the progress of environmental management
activities. Each plant has its own environmental supervisory committee and works to promote environmental management activities,

President

Environmental Management Committee

Specialized Committees• General Plant Managers• General Manager, Head Office Corporate Planning Division• General Manager, Head Office General Affairs Division• General Manager, Head Office Environmental Management Division• Energy Efficiency Committee• Product Committee

Chief Environmental
Management Supervisor(Director in charge of Environmental
Management)

JSW Group Company
Environmental Management
Supervisors

Group companies Japan Steel Works M&E, Inc.

(General Plant Managers)

JSW Plant Environmental
Management Supervisors

JSW Group Company
Environmental Management
Officers

Divisionsand Groups

energy and water, and outputs, such as waste generated in manufacturing processes, carbon dioxide and waste water, andreflects the results of those assessments in its environmental improvement activities.
Materials
INPUTS

Group
Companies

Original Certification Dateand Nikko-YPK Shoji Co., Ltd. have obtained ISO

December 18, 1998

JQA

14001 certification, an international standard for

Yokohama Plant

September 4, 2006

JQA

Meiki Plant

March 4, 2005

ASR

Japan Steel Works M&E

December 18, 1998

LRQA

Nikko-YPK Shoji

February 7, 2005

JQA

Note: Certification bodies L
 RQA: Lloyd’s Register Quality Assurance Limited
JQA: Japan Quality Assurance Organization
ASR: ASR International Corporation

33 JSW Integrated Report 2021

Chemical
substances

6,866 tEnergyWater

2,714 TJ

22.35 million m

3

Materials and engineering products

Industrial machinery products• Forged steel components fornuclear power plants• Rotor shafts for power generation• Twin-screw extruders• Magnesium molding machines• Blow molding machines• Turbine casings• Clad steel plates, clad steel pipes• Plastic injection molding machines• Excimer laser annealing systems• Film and sheet manufacturing equipment

Current Certification Body

Hiroshima Plant

environmental management systems.

• Metals(steel, non-ferrous metals)• Rubber, timber, etc.

Divisionsand Groups

Business Site ISO 14001 Certification
Business Site

Conduct training for employees

Machinery Products Business was as shown below. The JSW Group carries out quantitative assessments of inputs, such as

MANUFACTURING

JSW’s Hiroshima, Yokohama and Meiki plants and

45% reduction in CO2 emissions by the endof fiscal 2025 (compared with fiscal 2013)

The fiscal 2020 environmental impact in the manufacturing processes of the Material and Engineering Business and the Industrial

Environmental
Supervisory Committees

JSW Plant Environmental
Management Plant Supervisors

Group
Companies

60% reduction in CO2 emissions by the endof fiscal 2030 (compared with fiscal 2013)

Business Activities and Environmental Impact(Company Presidents)

Environmental Supervisory
Committees

Raising Environmental
Awareness

Obtain new ISO 14001 certification ofdomestic manufacturing Group companies

Achievement Level: ◎ Fully achieved 〇 80% or more achieved △ Less than 80% achieved

as part of the JSW Group’s unified approach to reducing its environmental impact.

Organization Chart

Medium-Term Environmental Plan
(under JGP2025)
Fiscal 2025 Targets

Fiscal 2020 Targets

Priority Issues

OUTPUTS76%

of total waste volume
is recycled

Total waste volume

Waste emission volume

86,587 t

20,882 t

Recycling volume

65,686 t

CO2 (Scope 1 + Scope 2)

Chemical substances(amounts emitted and transferred)

Waste water

165,117 t- CO

203 t

16.29 million m

2

3

JSW Integrated Report 2021 34

Response to Climate Change

Basic Approach

Energy Conservation Initiatives

While climate change will have a significant environmental, social and economic impact, it also poses a high degree of long-term
uncertainty. The JSW Group considers climate change an important issue for management, and is taking steps to counter it. We
are also analyzing and studying the effects that risks and revenue opportunities related to climate change will have on our businessInitiatives in JSW GroupOperations

The JSW Group considers energy-saving performance when updating production
equipment at plants in both the Industrial Machinery Products Business and the Materialand Engineering Business. As an additional measure, we are converting lighting to LEDs,
including at Head Office administrative divisions.

Initiatives in the Supply Chain

In 2021, we added statements regarding eco-friendly products and green purchasing to
our Basic Procurement Policy. Moreover, for stationery, office supplies and the like, we
practice green purchasing, which involves procuring products with less environmental
impact, such as products compliant with the Act on Promoting Green Procurement and
Eco Mark products.

Initiatives at the Product Use,
Maintenance and Service StageAs society in general continues to take on the challenge of achieving carbon neutrality,
customer demands for energy conservation and the adoption of smart technologies
continue to increase. Through the provision of high-quality cleantech products andservices, the JSW Group is contributing to reduced environmental impact both of its
customers and in society.

Use of Renewable Energy
and Future Initiatives

In April 2021, installation of solar panels with power
generation capacity of 200 kW was completed on
the rooftop of the eighth assembly plant at ourHiroshima Plant. Also, starting in October 2021, we
began using electric power from renewable energy
sources for a portion of purchased electricity at theHiroshima Plant. We will continue efforts to expand
our use of renewable energy.

activities and revenues. In the future, we plan to align our information disclosure with the TCFD disclosure framework.

Governance
Recognizing the importance of conducting its business activities in harmony with both the international and local communities, the JSWGroup has been promoting environmental management activities throughout the Group since 1997. The Environmental Management
Committee, headed by the director in charge of environmental management, determines Group-wide annual environmental management
policies and action plans, and monitors and evaluates the progress of environmental management activities.

Strategy
Risks related to climate change include declining demand for plastic processing machinery due to the shift away from plastics andrestrained investment related to thermal power generation and oil and gas due to decarbonization. Opportunities related to climatechange include expansion of the electric vehicle market and the emergence of non-petroleum plastics.

Risk Management
JSW complies with environment-related regulations through strict adherence to its environmental management system. The Environmental
Management Committee meets twice a year to discuss management and responses based on changes in rules and regulations.

Indicators and Targets
The medium-term environmental plan includes the following indicators and targets related to climate change.
CO2 emissions reduction target:	 60% reduction in CO2 emissions by the end of fiscal 2030 (compared with fiscal 2013)
45% reduction in CO2 emissions by the end of fiscal 2025 (compared with fiscal 2013)• Energy usage reduction target: Improvement of 1% or more in energy usage intensity (year-on-year and average for past five years)•

Energy Usage and CO2 Emissions

Environmental Equipment Investment (Environmental Accounting)

The JSW Group considers reduction of CO2 emissions toand Material and Engineering Business. Consequently, the ratio

We have been implementing environmental accounting, which reflects costs related to environmental conservation, since wecurb global warming as a priority issue under its medium-termof energy usage and CO2 emissions to JSW Group total sales

formulated our first medium-term environmental plan in fiscal 2001. We use environmental accounting to assess our environmental

environmental plan. In fiscal 2020, the JSW Group’s energy

varies depending on the sales share of the two businesses.

impact and the costs and effects of environmental conservation, and to carry out environmental conservation activities effectively

usage was 2,714 TJ, an 8.5% reduction year-on-year, andHowever, in order to more accurately assess the environmental

and efficiently. Total costs for fiscal 2020 were ¥943 million, a decrease of ¥421 million from the previous fiscal year.

CO2 emissions were 165,117 t-CO2, a 12.9% reduction

impact of each business and effectively advance environmental

year-on-year. These reductions were largely attributable toimprovement activities, we use net sales as the basis forequipment upgrades as part of fuel conversion at the rolling

confirming intensity in the Industrial Machinery Products

Future Plans

mill of Japan Steel Works M&E, Inc.

Business and steel output as the basis in the Material andWe are proceeding with changing heating and heat treatment furnace fuels from heavy oil to natural gas in order to reduce CO2Engineering Business.

emissions. Furthermore, with the future aim of carbon neutrality, we are investigating the commercialization of industrial furnaces

Owing to the different characteristics of the industries they
serve, there are significant differences in the business activities

We remain committed to reducing CO2 emissions of theof the JSW Group’s Industrial Machinery Products Business

JSW Group as a whole.

Energy Usage

CO2 Emissions

that burn ammonia as a carbon-free fuel.

CO2 Emissions (Scope 1)■ Fuel ■ Electricity

56% reduction(TJ)(t-CO2)(t-CO2)4,500

300,000

150,000

4,003

250,000

3,023

3,000

3,054

2,933

2,966

274,547
192,771 194,247 186,700 189,552

150,000

1,500

2016

35 JSW Integrated Report 2021

2017

2018

2019

2020

(FY)

91,15588,06688,90164,444

2016

2017

2018

2019

2020

(FY)

compared with FY2013

126,407

99,387 103,092 98,635 100,650
100,673

60,00030,0000
2013

20% reduction

90,00030,0000
2013

93,38560,00050,000(t-CO2)150,000
120,000

90,000165,117

100,000

0compared with FY2013

148,140

120,000

200,000

2,714

CO2 Emissions (Scope 2)■ Scope 1 ■ Scope 2

0
2013

2016

2017

2018

2019

2020

(FY)

2013

2016

2017

2018

2019

2020

(FY)

JSW Integrated Report 2021 36

Reduction of Environmental Impact

Talent Development Strategy

Policy and Initiatives for Water Resources
Japan Steel Works M&E, Inc. accounts for more than 99% of
the water used by the JSW Group. Although the company
uses a large volume of industrial water and sea water inAt the JSW Group, we view the growth of our change-resilient

manufacturing practices). We will focus on effective improvement

management, the evolution of our business model (monozukuri

and operation of our recruiting, training, and compensation andWater Consumption

and value creation), and the people who work here (humanevaluation systems, as well as the overall personnel systems that

(Million m3/year)

capital), as vital to the sustainable improvement of ourunderpin them, and by providing employees with opportunities tocorporate value.

grow and succeed we will be a company with job satisfaction and

25

22.12

22.86

22.44

22.95

22.35

cooling, it operates in a region with low water stress, recycles

20

a portion of the cooling water and also practices water source

15

key is to secure and develop people who wish to meet thewill create social value and economic value (yompo-yoshi), and10challenge of creating value based on monozukuri (goodthis in turn will increase the Group’s corporate value.

management for some of the industrial water it uses. Therefore,
we believe there is little impact on stakeholders.
In terms of waste water quality, we will continue to conduct
strict water quality management based on government ordinances.

Specifically, in terms of our talent development strategy, theexcitement for employees. In this way, the JSW Group as a whole5

Overview of Talent Development Strategy

0
2016

2017

2018

2019

2020

(FY)

Vision and Philosophy

Proper Management of Chemical Substances

Release and Transfer ofChemical Substances

At the JSW Group, we manage chemical substances and other substances with

Monozukuri(Good Manufacturing Practices)

FY2019FY2020

Amountreleased (t)

57.3

50.1

release and transfer of chemical substances to local governments annually. The JSW

Amounttransferred (t)153.6Group uses Class 1 designated chemical substances primarily in manufacturing

Total (t)210.9environmental impact, and are working to reduce emissions of hazardous substances.
Based on the Pollutant Release and Transfer Register (PRTR) Law, we report our

Value Creation

Technology

Prescience

Innovation(Technical Skills Dojo, Steel Academy)(Specialized programs)

153.1(Selection and development ofchange keypersons)203.2

A company with job satisfaction and excitement for employees

processes, such as steel manufacturing, welding, galvanization, cleaning and coating.

Talent development strategy

Our Approach to Resource Recycling (Reduction of Waste Emission Volume)
Recruitment

The JSW Group contributes to resource recycling through eco-friendly products. Going forward, we will develop products thathave a reduced environmental impact, and strive to be a company that contributes to the realization and development of a

Independent growth ofindividuals

Employees who drivechangeCompensationand evaluation
systemsustainable society. At our plants, we are applying the three R’s (reduce, reuse, recycle) as a basic principle to reduce the volume
Training anddevelopmentof waste emitted directly by the JSW Group.

Main Types of Waste and Resource Recycling Initiatives
Owing to the different characteristics of the industries theyscrap metal used in the plant is 100% recycled, but refractory

serve, there are significant differences in the business activities

material and some slag are disposed of in landfills, so theof the JSW Group’s Industrial Machinery Products Businessplant’s overall recycling rate is only about 70%. Excluding slag

Securing and Developing Human Resources

and Material and Engineering Business. Consequently, eachand refractory material, Japan Steel Works M&E has also

Our Ideal Candidate Profile and Recruitment Activities

plant emits waste materials specific to that plant. The

achieved a recycling rate of more than 90%. We will consider

When recruiting new university graduates, we focus on ourinterviews, which also enables close mutual communication.

Hiroshima Plant, the Yokohama Plant and the Meiki Plant in theways to deal with slag and refractory material as a futureideal candidate profile—someone with the potential to create

We also offer internships to help prospective employees gain

Industrial Machinery Products Business have each achieved

issue. Japan Steel Works M&E uses a large amount of scrap

change—and the aspirations of candidates seeking to worka deeper understanding of our workplace environment andrecycling rates of more than 90%. At Japan Steel Works M&E,

iron as a raw material, thereby contributing to the resource

for us. These are outlined below.

culture. Particularly when recruiting engineers, we always provide

Inc. in the Material and Engineering Business, the main waste

recycling of society.

materials are scrap metal, slag and refractories. Of these,

Waste Emission Volume
Industrial Machinery Products Business■ Waste emission volume
(t)

350

97.9

98.0

280
210

218

217

98.1
246

98.0
313

98.0
213

140

Recycling rate

Material and Engineering Business■ Waste emission volume

(%)

(t)

(%)

25,000100

80

20,00060

15,00040

10,000

70

20

5,000

0

0

0

2016

2017

37 JSW Integrated Report 2021

2018

2019

2020

(FY)

92.4

12,22084.8
12,12074.5

72.3

16,71920,669

5,786

80
60
40
20
0

2016

2017

2018

2019

2020

We use the same approach for mid-career candidates, while

opportunities for an interview at a plant and an on-site tour,

also emphasizing the recruitment of people with expertise andgiven the importance of the production site in manufacturing

people who want to make the most of their expertise.

industries. This enables candidates and JSW to get a better

We find and hire excellent, ambitious students nationwide
Recycling rate

100

83.8

The spirit of yompo-yoshi(FY)

idea of how and where that person might work.

through an approach that combines face-to-face and online

Ideal Candidate Profile
1. Is eager to take on challenges
2. Has strong problem-solving capabilities
3. Has firm independent views and standards
4. Is able to think logically
5. Is able to act with persistence

Aspirations We Look For
1. Wants to create something new that is the first of its kind
2. Wants to do a job with pride while participating in
manufacturing that supports society
3. Wants to try selling our unique products to customers
worldwide
4. Enjoys monozukuri above all
JSW Integrated Report 2021 38

Talent Development Strategy

Approach to Diversity

Training and Development
While primarily conducting on-the-job training (OJT) to develop

Our personnel strategy under JGP2025 is to take measurespeople who will play a part in monozukuri and value creation,that focus on individual employee aptitudes to further develop

we also emphasize off-the-job training that includes groupand strengthen talent capable of value creation. In particular,

training by job level, from newly hired employees to management.

we emphasize identifying and individually developing personnel

In addition, by providing a diverse array of training options andwho we expect to make a contribution to value creation andlearning opportunities, such as basic education and specialized

have the initiative to create change. To that end, in addition toeducation necessary for work, language learning that includes

selecting individuals for fast-track promotion to managerial

study abroad, and self-development support, we are creating

positions and assigning them important missions, we activelya system that empowers individuals to take charge of theirprovide on-the-job skill development, including training andown development.

career programs that leverage job rotation, and this forms theWe have established in-house training programs, including

basis for succession planning.

the Technical Skills Dojo at the Hiroshima Plant and the SteelFor off-the-job training, in addition to existing training programs

Academy at Japan Steel Works M&E, Inc. (Muroran Plant),that are uniform for all participants, we are focusing on enhancing

both of which focus on monozukuri and skill transfer insystems to enable employees to participate in training programs

particular. Here, the know-how we have cultivated over many

at a time suited to their diverse qualities, aspirations and career

years of manufacturing is passed on to younger employees,

awareness, and on improving specialized training programs linked

enabling us to maintain and refine the technologies and skills at

to digital transformation. These approaches will help us better

production front lines that are essential in our build-to-order

foster an environment in which employees can achieve personal

manufacturing system, which is our competitive advantage.

growth according to their ambitions, and in so doing improve job

The JSW Group hires people based on their qualifications,improving the work environment for all employees. Also to thiswithout regard to characteristics such as gender or nationality.

end, we are preparing training systems that support self-

Promotion of the active participation of women and seniors,development that will enable employees to improve their skills

and expansion of employment of people with disabilities areaccording to their ambitions.

urgent and ongoing issues faced by the Group. At present,

In addition, we are enhancing benefit programs, including

however, the share of women among new graduate hires, anestablishing a cafeteria plan to accommodate diverse values

indicator of the advancement of women in the workplace, andand needs.

the percentage of employees with disabilities, an indicator of

Along with revisions to personnel systems, we will broadly

respect for human rights and acceptance of diversity, are stilland continuously carry out education and awareness activities

low. To address this situation, we are introducing a series ofin order to increase the JSW Group’s ability to embrace diversity.

personnel systems aimed at work-life balance.
Our first concern is to increase the ratio of female employees,

Indicators

which is essential for increasing the number of female managers.
Next, we will increase the ratio of women in supervisory
positions equivalent to section chief level. Furthermore, byintroducing systems for telework, staggered working hours
and paid leave by the hour, we will support employees inbalancing work with childcare and family care, thereby

FY2018FY2019FY2020

Number of Employees Who
Took Childcare Leave

6

10

11

Percentage of Employeeswith Disabilities (%)

1.97

2.08

2.18

Percentage of Female New
Graduate Hires (%)

13.6

9.3

10.9

Reemployment Rate ofRetired Employees (%)

95.9

96.2

93.8

satisfaction and performance.
Indicators

FY2018FY2019FY2020

37.1

37.9

29.8

Training cost per employee (thousands of yen)
Number of participants in job level-specific training

279

234

285

Completion rate of job level-specific training (%)

97.5

93.2

98.6

66

79

47

Number of employees newly certified under The National Trade
Skill Test & Certification (NTSTC)

Training System
Technical Skill
Global Personnel
Management andDevelopment,
Training
Engineer Training Leadership Training

39 JSW Integrated Report 2021

SectionManagerTraining
Academic Qualifications and Study Abroad

Development Academy

Leadership Development Seminar

Basic Seminar

Overseas Placement Training

TOEIC English Program

Self-Development Support

Health and Safety

Intensive Training for Qualifications

OJT

Monozukuri Training (Technical Skills Dojo, Steel Academy)

Language Study Abroad

Mid-Level
Employee Training

Quality Control Training

Assistant Manager
Candidate Training

Global Skills Training

New Employee
Training

Job-Based Training

2nd-Year Training

Business Essay Writing

5th-Year Training
3rd-Year Training

Business Basics Training

Level-Based
Correspondence Training

CSR and Risk Management

Section Manager
Candidate Training

Respect for Human Rights
To help create a more sustainable society, the JSW Group has

systems that support work-life balance, foster a workplaceestablished its Corporate Code of Conduct. A key item in thisenvironment that is inclusive of diverse personnel, and strive tocode is our commitment to “respect the human rights of allprovide equal opportunities to excel.

people,” and we declare that “we understand the effect of our

Executive Seminar

General Managers

Workplace/Frontline Capability Development

Section Managers
Assistant Managers

Employee Level

New Employees andGeneral Employees

Managerial Level

Business Basic Skills
Training

Human Rights

Section Manager
Initiation Training

Assistant Manager
Initiation Training

Throughout our supply chain, we require that suppliers sharebusiness activities on human rights, and comply with all laws

an understanding of human rights and legal compliance, as

regarding human rights in Japan and overseas,” and that “weappropriate. However, we do not assess suppliers’ impacts

require understanding of human rights and legal complianceon human rights quantitatively or continuously at present.

not only within the JSW Group but also in the supply chain,

The JSW Group recognizes that its business activities coverincluding raw material and component suppliers, construction

exceedingly broad fields and involve or impact a wide variety ofcontractors and distribution outsourcing contractors.”

individuals. To prevent any direct or indirect negative impacts

In this context, the JSW Group has focused on health andon human rights, we engage in dialogue with all stakeholders,safety activities and harassment prevention, with the primary

set priorities and address them appropriately, and otherwise

aim of ensuring that employees can perform their work in astrengthen the management of human rights-related risks.

healthy and pleasant environment where they are respected as

We believe that achieving the SDGs and protecting andindividuals and their human rights are not violated. We havepromoting human rights are inseparable and complementary.

established internal and external consultation hotlines and a

Based on that, we will conduct human rights due diligence, andresolution process through the Harassment Countermeasures

work to improve our human rights management framework

Committee. Furthermore, we carry out fair hiring that respects

using the UN Guiding Principles on Business and Human

the human rights of all individuals, and have also established

Rights as a reference point.

JSW Integrated Report 2021 40

Occupational Health and Safety

Supply Chain Management

Policy for Health and Safety Activities

Approach to Supply Chain Management

In the JSW Group, which operates primarily in manufacturing, ensuring the health and safety of employees has always been a top

We have long engaged in joint development and manufacturing

the materials we purchase, and have updated our Basicpriority. We consider our health and safety initiatives to be part of a corporate foundation and corporate culture rooted in anwith outside partners to provide products that meet customer

Procurement Policy to consider human rights and the environment

emphasis on human capital and respect for human rights.

needs worldwide. As such, the JSW Group cannot deliverin purchasing items, with the goal of creating a more sustainable

excellent products on its own—procuring the necessary partssociety. We will formulate evaluation criteria for procurement

and materials through the supply chain at an appropriate level

and conduct successive evaluations.

In fiscal 2020, we carried out these activities in accordance with the policy below, with the aim of maintaining and improving thehealth of employees and preventing occupational accidents.

of quality and cost, and utilizing them effectively, is the source
1. Basic Philosophy
	To fulfill our social responsibility, we have positioned health and safety as a vital part of our management policy, and work toensure the health and safety of everyone involved in our business.
	  We have established and operate an occupational health and safety management system, and prioritize health and safety
in all of our business activities to foster workplaces where employees can work safely and with peace of mind.
2.

Basic Policy(1) We will comply with health- and safety-related laws and regulations, as well as internal standards.
(2) We will establish a safety management system based on strong leadership from top management, the participation of all
employees, and the cooperation of the labor union as well as that of Group companies and partner companies, andthereby prevent occupational accidents and health problems.
(3) We will invest the resources necessary for effective workplace improvements.

and cost, but also on the manufacturing processes used insound growth over the course of business transactions.

1.

Fair business dealings that value strong partnerships

3.

2.

Plant Management System

Companywide Healthand Safety Council
General Health and
Safety Managers

Plant Health and
Safety Committee(General Plant Manager or
Deputy Plant Manager)

Department
Safety Managers(General Managers,
Section Managers)

Health and Safety
Assistants, Safety
Promoters

Socially conscious raw material sourcing

	We consider the impact on local communities in our sourcing
activities. In particular, we cooperate with suppliers to preclude
the use of raw materials that could cause serious social
problems,* such as human rights or environmental problems.

	We seek to build better partnerships and share common
interests with all of our suppliers.
	  We deal in an open, fair and impartial manner with all our
suppliers in Japan and overseas.

Companywide Control Functions(Director in charge of
Health & Safety Management)Group’s Vision and policies so that all parties can continue

based on the following policies.

Organizational Structure for Promotion of Health and Safety

General Plant
Managers

to play indispensable roles within society, we share the JSW

products. In recent years, we have focused not only on quality

The JSW Group looks for suppliers in Japan and overseas

The promotion structure for health and safety activities in the JSW Group is as follows.

Companywide Healthand Safety Manager

of our ability to continue supplying the world with better

Basic Procurement Policy

Health and Safety Promotion Structure

President

To ensure that all partners in our supply chain can continue* Minerals produced in the Democratic Republic of the Congo andneighboring countries, the trading of which is used to financearmed groups (conflict minerals); RoHS restricted substances;
and any materials that involve human rights violations such as
child labor, forced labor and labor at unreasonably low wages.

Selection of suppliers	Decisions are made according to proper procedures by
evaluating suppliers with regard to the following criteria, basedon economic rationality.
	(1) Compliance with the laws and regulations of each country(2) Eco-friendly products and green procurement(3) Terms and conditions including material specifications,
quality, performance, price and delivery time(4) Technological development capability(5) Business reliability

4.

Mutual understanding and relationships of trust	We take the following measures to deepen sound relationships
and mutual understanding with suppliers.
	(1) Regular briefings on our procurement policy(2) Quality management checkups and guidance to eliminate defects(3) Recognition of outstanding suppliers(4) Confidential management of sales and technology information(5) Establishment of whistleblowing systems for suppliers

Health and Safety
Companywide Healthand Safety Management
Administrative Office

Staff Department

Local Communities

Group Companies

Health and Safety Initiatives and Results
In the JSW Group, we specify priority items for health andFrequency Rate of Accidents per Million Workhours

safety activities each fiscal year, and the Group (as well as thelabor union) and suppliers of each plant work together on

Muroran Plant

Hiroshima Plant

Yokohama Plant

occupational health and safety management systems, and2.42*

an awareness of social responsibility in order to create a better society and be a company rooted in local communities.

2

are enhancing the effectiveness of their activities.
We plan to step up our initiatives and activities for improving

1

0.81

the physical and mental health of employees, and are currently
establishing the necessary framework and systems.
0

Site

Certification

Date acquired/renewed

Hiroshima Plant

ISO 45001

Sept. 11, 2021

Japan SteelWorks M&E

OSHMS

June 5, 2021

41 JSW Integrated Report 2021

The JSW Group recognizes its responsibility as a member of society to participate in a variety of regional and other communities,
and contribute to their development. The JSW Group gives back to society through its businesses, and engages in activities withactivities aimed at achieving zero occupational accidents.
Our major sites have acquired certification of their

Meiki Plant

3

0
2016

0.61

0.34

0.63

0.42

0.53

0

0

2017

2018

0.79

0

2019

0

2020

(FY)

Note: Frequency rate of accidents calculated from lost-worktime, serious and fatal
accidents during the fiscal year.
* Meiki Plant merged into The Japan Steel Works, Ltd. in fiscal 2020
Frequency rate of accidents at the Meiki Plant in fiscal 2020 due to the occurrenceof multiple lost-worktime accidents

Community Beautification

Education

Community Exchanges

We engage in cleanup activities
around our plants and alongcommuting routes. These
activities are also opportunities
to engage with local communities
and raise the environmental
awareness of employees.

We conduct plant tours,
workplace tours and work
experience activities. We view
these as opportunities tointeract with local communities
and convey the appeal of
monozukuri to students andother visitors.

Funakoshi Summer Festival
JSW is a sponsor of the
Funakoshi summer festival, heldin the Funakoshi district ofHiroshima. We open the groundsof the Hiroshima Plant for the
event, which is attended bymany people, primarily local
residents.

Mikasayama Shrine Annual
Festival
Mikasayama Shrine in Muroran,
Hokkaido, which was built at thetime of JSW’s founding basedon the desire to ensure our
future development and safe
operation, holds an annual
festival in August that is attended
by many local residents.

Note: The annual activities above were either scaled down or cancelled in fiscal
2020 due to the COVID-19 pandemic.
JSW Integrated Report 2021 42

Quality

Approach to Quality Management

Quality Management Initiatives

We establish quality policies at each business division and plant, and each develops its own quality assurance and quality

Our main initiatives for quality management of each product category are outlined below.

improvement systems. This enables them to perform detailed quality control on a product-by-product basis. Plants, which are thecenter of manufacturing, and the subsidiaries that belong to the plants are included in these systems, and work together on quality
management system (QMS) and other quality management initiatives.

1

Acquisition and implementation of quality management system (QMS) certification	
Acquisition and implementation of ISO 9001, a standard for QMS for general manufacturing industries, to improve customer
satisfaction and the quality control system

Quality Management andProduct Liability System

Reporting Lines

Acquisition of certifications and compliance with standards based on required standards in individual business areas
Examples: ISO 9001 (QMSs at each plant), ASME (pressure vessels, tanks, parts for nuclear power generation) and others

To gain and nurture customer trust in our products and1

services, we have established Companywide Quality Assurance
Regulations and Product Liability Prevention Regulations. The
objective is to proactively prevent quality problems, and to
take prompt organizational countermeasures against any

2problems that do arise.
The current quality management and product liability
system covers The Japan Steel Works, Ltd. and Japan SteelWorks M&E, Inc. Our diverse products range from materials

3

Regular reporting
At meetings of the Management Council, general plant managers
report on the status of quality management, improvement
progress, and new developments.

When a major quality problem occurs
Reports are made by general plant managers, who areresponsible for manufacturing, to business division directors,
who are responsible for products, and ultimately to therepresentative directors.

2

Unified quality improvement activities by design, manufacturing and research departments
Continuation of companywide quality control improvement activities
3

Reliable assurance of quality (raising awareness)
Establishment and regular revision of quality manuals
Reliability through education and awareness-building guided by mottoes (solicited from employees)

4

When a product liability problem occurs
Same as 2

Activities to reduce the defect rate
Learning from past defects (using root cause analysis) to prevent recurrence5

to industrial machinery and defense equipment, and the quality

Realization of quality that raises customer satisfaction

Countermeasures against serious defects

	Quick resolution by forming a priority measures team for serious defects and thorough measures to prevent recurrence

management systems required also vary. Therefore, productmanufacturing takes place under the quality management
structure shown below, with plants—the very heart ofmonozukuri—shouldering manufacturing responsibility, andAt the JSW Group, our three strengths—technology, presciencebusiness divisions assuming ultimate product liability.

Structure of Quality Management and Product Liability System(As of March 31, 2021)
President• Executive Vice
President• Directors• Audit & Supervisory
Board Members•

Management Council

Business Division
Director

Business Division
Director

Business Division
Director

Executive Officers• Business Division
Directors• Department
Managers•

President,
Japan Steel Works
M&E, Inc.
General Plant
Manager

General Plant Manager

Quality Management
Department

Quality Management
Department

Quality Management
Department

Quality Management
Department

Design and
Manufacturing

Design and
Manufacturing

Design and
Manufacturing

Design and
Manufacturing

Quality Management
Committee

Quality Management
Committee

Quality Management
Committee

Quality Management
Committee

The Japan Steel Works, Ltd. (Hiroshima Plant, Yokohama Plant, Meiki Plant)
and subsidiaries that belong to the plants

43 JSW Integrated Report 2021

For example, to predict and prevent defects at the plant,

and innovation—are evident throughout our initiatives for

we compile and maintain a database of defects that havequality management. Our plants have been transitioning tooccurred in the past. At meetings immediately after receiving

in-house manufacture of main components for each product,an order, the departments concerned look back to the causes

and research, design and manufacturing departments areof defects that occurred in similar construction projects in thecooperating in team activities to enhance component quality.

past, and countermeasures that were taken, to prevent themAn organizational structure that enables ideas generated
through the processes of design, analysis, material production,from happening again.
In addition, the service department responds to performancemachining, quality inspection and technological development

improvement and modification requests after delivery as

to be fed back with good communication is the basis of ourneeded, and strives to increase the level of customer satisfaction.

strength in technology, and incorporating views from different

In the event that a defect occurs after delivery, the quality

positions leads to innovation. The system of fully integrated

management, research and design departments cooperate toproduction at our plants, from materials to finished products,

investigate the cause, formulate a plan for countermeasures

is the source of our ability to respond to customer needs.

and implement measures promptly so that there is no impediment

In our quality management activities, we take measures toto the customer’s production plans.

ensure that products are not only free from defects prior to
shipment, but that they also remain so after delivery to thecustomer. We focus on three key points:• Quality improvement involving the supply chain• Prediction and prevention of defects at the plant• Responding to customer requests for quality improvement

Japan Steel Works M&E, Inc.

JSW Integrated Report 2021 44

Corporate GovernanceCorporate Governance Policies

Building a Stronger Governance System

Based on the JSW Vision, the JSW Philosophy and the Corporate Code of Conduct, we recognize that it is essential to earn thetrust of all stakeholders, including shareholders, customers, business partners and employees, in order to achieve sustainablegrowth and enhance corporate value over the medium to long term. As such, we will continue to strengthen corporate governanceto ensure the transparency, soundness and effectiveness of management.

• Apr.	Introduced

whistleblowing
system• Jun.	Discontinued
retirement benefit
system for officers• Nov. Formulated Corporate

Overview of Corporate Governance Structure
The Japan Steel Works, Ltd. (“the Company”) has adopted• Mar.	Board of Directors resolved• Formulated Policies in Relation to
Cross-Shareholdings• Formulated Basic Policy for Officer
Nominations and Dismissals• Formulated Criteria for
Independence of Outside Officers

board. The Board of Directors consists of nine directors (three

Executive Board and the Management Council. Once everyof whom are outside directors) and the Audit & Supervisory

fiscal half in principle they visit plants, sales locations andBoard consists of four Audit & Supervisory Board members

Group companies, and receive reports on necessary information(two of whom are outside Audit & Supervisory Board members).

from each division. They also exchange opinions with directors,

・・・

2006

2011

2015

• Jun.	Introduced restricted

stock-based compensation
plan for officers• Jun.	Amended Articles of Incorporation

regarding directors

Maximum number of directors: 20 10
Term of office: 2 years 1 year▼

executive officers and other keypersons, and based on theseCompany has also introduced an executive officer system

exchanges, advise management from an objective andthat separates management decision-making and supervisory

impartial standpoint, while strictly monitoring the execution of

Note: A t the 85th Annual General Meeting of
Shareholders held in June 2011, the numberof directors was reduced to 7 (from 13 in
the previous year).

functions from business execution functions conducted by

duties by directors.

• Jun.	Appointed first outside director

2016

1 outside director
out of 7 directors

strengthening supervision and improving business execution.

Corporate Governance Structure

Committee and Remuneration
Advisory Committee• Mar.	Conducted evaluation of Boardof Directors effectiveness (oncea year since 2016)2021• Jun.	Appointed 3 outside

directors

3 outside directors
out of 9 directors

33.3%

2 outside directors
out of 8 directors

25%

14.3%

Role and Composition of Governance Bodies

Board of Directors

Audit & Supervisory Board
Auditing

Executive directors

Composition

Audit & Supervisory Board
members

ReportingAccounting auditors

Nomination
Advisory Committee
Remuneration
Advisory Committee

Auditing
Cooperation

Monitoring

Cooperation

Attendees(with voting
rights)Directors(6 inside, 3 outside)

Inside directors (6)Non-director managing
executive officers or above (2)President (1)Director in charge of Personnel Department
and Secretary Office (1)Outside directors (3)Observers(no voting
rights)Audit & Supervisory Board
members(2 inside, 2 outside)

Outside directors (3)Inside Audit & Supervisory
Board member (1)Outside Audit & Supervisory Board member (1)Objectives and Areasof Authority

Meetings in FY2020• Business divisions• Plants

Composition
Information Security
Committee

Companywide Health and
Safety Council

Export Control
Administration Committee

Business execution organizations

Environmental Management
Committee

Directors with business execution
responsibilities and executive officers

Internal Control Committee

Management Council

ESG Promotion Committee

Executive Board
Internal Auditors OfficeNomination Advisory
Committee

Executive Board

Business
execution

President

Remuneration Advisory
Committee

Board of Directors

Chairperson

Cooperation

Outside Audit & Supervisory
Board members

Outside directors

45 JSW Integrated Report 2021

2020

• Jun. Appointed 2 outside directors

General Meeting of Shareholders• Head Office divisions

Committee

2018• Feb.	Established Nomination Advisory(1 director)

executive officers, thereby speeding up decision-making,Decision-making• Apr.	Established ESG Promotion• Apr. Introduced executive officer system▼meetings including those of the Board of Directors, theOversight/
Monitoring

to implement a policy for
determining the content of
remuneration, etc. forindividual directors

Audit & Supervisory Board members attend importantthe structure of a company with an audit and supervisory

The term of office for directors is set at one year. The

Governance Policy of The Japan
Steel Works, Ltd.

Attendees

President

President

Decides and reports on basic
management policies,
matters stipulated by laws
and regulations, and otherimportant management
matters, and monitors theexecution of duties by directors
and executive officers∙ Deliberates and decides
on important management
matters and matters thathave a significant impact
on the Company’s profit
and loss∙ Discusses and reports on
basic management policies
and matters relating tooverall management

As an advisory body to theBoard of Directors, deliberates
on matters relating to the
remuneration of directors
and executive officers, andreports the results to theBoard of Directors

Outside director
As an advisory body to theBoard of Directors, deliberates
on matters relating to thenomination of directors,
Audit & Supervisory Board
members and executive
officers, and reports the results
to the Board of Directors

14

41

2

3

Management Council

Audit & Supervisory Board

Directors (6 inside, 3 outside)
Audit & Supervisory Board members (2 inside, 2 outside)
Non-director executive officers (5)Business division directors and business division deputy directors,
general plant managers, Head Office division managers

Audit & Supervisory Board members(2 inside, 2 outside)

Presidentー

Objectives and Areasof Authority

Coordinates and reports on the following important management
matters and shares management information
1. Analysis of business environment, progress of business plans
2. Important matters relating to research and development
3. Matters relating to Group companies
4. Matters that have a significant impact on management including thoserelating to sales, production, funding, profit and loss
5. Other important management matters

Reports, discusses and makes resolutions onimportant matters relating to auditing; thisdoes not preclude the exercise of individual
Audit & Supervisory Board members’ authority

Meetings in FY2020

1013

Chairperson• Group companies

JSW Integrated Report 2021 46

Support for Outside Directors and Officer Training

Skill Matrix
The JSW Group’s long-term vision is to be a company with job satisfaction and excitement for employees and growing to abusiness scale of 300 billion yen. In line with the new medium-term management plan, JGP2025, formulated in May 2021 andcovering the five-year period beginning fiscal 2021, we will promote business activities based on the following four basic policies:
1) Towards the unprecedented general manufacturer of plastic processing machinery in the world, 2) Make constant profit in the
Material and Engineering Business, 3) Create new core businesses, and 4) Implementation of ESG management.
From this perspective, we believe it is important to ensure that the Board of Directors has the diverse experience and capabilities
necessary for promoting JGP2025’s four basic policies. To that end, we have prepared a skills matrix as one selection criteria for
director and Audit & Supervisory Board member candidates.

InsideCorporate
Finance andManagement Accounting

Manufacturing,
Personnel andLegal,
Information
Quality Control,
Human
Compliance Systems andEnvironment
Technology
Resource
and Risk
Digitaland R&D
Development Management Transformation

〇

〇

〇

〇

Toshio Matsuo

〇

〇

〇

〇
〇

Junichiro Deguchi
Takashi Iwamoto

〇

〇

〇

〇

Sadao Degawa〇

Yoshiyuki Nakanishi〇

Hisao Mitsui〇〇

The following is a summary of the evaluation and analysis for fiscal 2020.
1
〇

〇
〇
〇

Fumihiko Tanizawa〇〇

Hiroshi Misawa〇〇

The Board of Directors continues to enhance its function by conducting an annual questionnaire-based evaluation and analysis.

〇
〇

〇

〇

Toru Nishiyama〇〇〇

Evaluation of Board of Directors’ Effectivenessto plan the questionnaire and aggregate its results.
〇〇

Takashi Shibata

2
Officer Training	The Company invites outside experts to lead study sessions and offers opportunities for participation in external seminars, in order to deepen
the understanding of the roles and responsibilities required of directors and Audit & Supervisory Board members.

Since fiscal 2018, in order to increase the objectivity of the evaluation and analysis, a third-party organization has been employed〇

Shingo Mito

Audit & Supervisory
Board Members
Outside Inside

Sales andMarketing

Naotaka Miyauchi

Hiroki Kikuchi

OutsideDirectors

Name

1
Support for Outside Directors
	For the purpose of deepening their understanding of the JSW Group, outside directors are provided with information on the Group’s business,finances, organization and other topics at appropriate times after assuming office. In addition, by participating as observers at weekly
Executive Board meetings, outside directors are able to gain an understanding of important management matters within the JSW Group.
They also accompany the president to twice yearly report meetings at each plant, where they also meet with plant management. Moreover,outside directors are provided with materials at least three days prior to Board of Directors meetings, and advance explanations are provided
by business divisions and Head Office divisions as appropriate.

〇

Reasons for Appointment of Outside Directors
JSW believes that the function and role of outside directors in corporate governance is to strictly supervise the execution of duties
by directors and to make management judgments and decision-making from a neutral and objective standpoint with no conflict ofEvaluation and Analysis Methodology

3(1)	During the period March to April 2021, a questionnaire(anonymous basis) was administered to all directors andAudit & Supervisory Board members, with the planning ofquestionnaire items and the collection and aggregation of
results outsourced to a third-party organization.
(2)	The results of the questionnaire were reported at the Boardof Directors meetings held in May and June 2021, anddiscussions were held on the evaluation and analysis of theeffectiveness of the Board of Directors based on the adviceof the third-party organization.
(3) Questionnaire content•			Composition, operation and discussion of the Board of Directors•	
Support system for directors and Audit & Supervisory		Board members•			
Self-evaluation by each director, etc.
2

Points of Improvement since Fiscal 2019(1) Ratio of inside to outside directors(2)	Encouragement by the chairperson regarding participants’ input(3)	Establishment of a system to appropriately provide informationnecessary for the execution of duties, etc.

4Issues in Fiscal 2020(1)	Sufficiently discussing management strategies and plans forachieving sustainable growth and enhancing corporate
value over the medium to long term(2)	Addressing ESG issues and reflecting them in management
strategies(3) Providing the necessary training opportunities for officers.

5

Measures to Resolve Issues(1)	Select themes to be discussed from a medium-to-long-term
perspective and schedule their discussion at Board of
Directors’ meetings(2) Enhance and systematize training for officers, etc.

Summary of Results from the Evaluation and Analysis

	Based on responses to the questionnaire, it was confirmed thatthe effectiveness of the Board of Directors as a whole has been
generally ensured.

interest with the Company, and from an independent standpoint with no risk of conflict of interest with general shareholders. To
that end, the Company has appointed three outside directors.

Officers’ Remuneration▼

The roles expected of outside directors are stipulated in the Corporate Governance Policy.
 orporate Governance Policy of The Japan Steel Works, Ltd.
C
https://www.jsw.co.jp/en/ir/governance/main/02/teaserItems1/01/linkList/0/link/GovernancePolicy_en.pdf

Succession Planning for the President and Procedures for Selection and Dismissal
1
Formulation and Implementation of Succession Plan for the President
	With respect to the formulation and implementation of the succession plan for the president, the Nomination Advisory Committee holds
appropriate discussions, considering the qualities of the candidate, such as experience, ability and character, based on the JSW Philosophy
and management strategies, and reports to the Board of Directors as necessary.
2
Appointment Criteria and Procedures	The appointment of the president is decided by the Board of Directors after receiving a report from the Nomination Advisory Committee
based on the succession plan.
3
Dismissal Criteria and Procedures	Dismissal of the president is decided by the Board of Directors if circumstances make it difficult for the president to carry out his or her duties.

47 JSW Integrated Report 2021

1

Basic Policy for Directors’ Remuneration

	The maximum amount of directors’ remuneration is decided by resolution of the General Meeting of Shareholders. The basic policy is to set
remuneration that provides sound incentives for sustainably enhancing corporate value, at a level corresponding to respective roles andresponsibilities, and that ensures fairness and transparency in remuneration-related decision processes.
2

Procedures for Determining Directors’ Remuneration

	The remuneration of directors is determined by the Board of Directors after receiving a report from the Remuneration Advisory Committee.
However, the allocation of annual remuneration by position and by individual and the allocation of bonuses by individual may be delegated tothe president by resolution of the Board of Directors. In this case, the president makes decisions in accordance with the content of the report.
3

Composition of Directors’ Remuneration(1) Directors (excluding outside directors)
Remuneration
structure

Annual remuneration
Base component

Bonuses

Performance- andresults-linked component

Operating income
basis component

Cash

Cash/Shares

Dividend basis
component

Stock-based remuneration
SharesFixed/Variable

Fixed

Variable (short-term)

Variable (medium-to-long-term)

Percentage

60

30

10

(2) Outside directors		Outside directors, who are responsible for supervisory functions, shall be paid only fixed remuneration (base component of annual remuneration)in consideration of their duties.
JSW Integrated Report 2021 48

Message from an Outside Director(3) Performance Indicators for Variable Remuneration (Short-Term), Targets (Base Values) and Results for Fiscal 2020
FY2020Evaluation criteria Target (base value)
Result• 
Coefficient based on departmental performance
Industrial Machinery Products Businessevaluation, taking into account individual results¥147.0 billion¥145.2 billion
Orders• 
The departmental performance evaluation isreceived
Material and Engineering Businessdetermined based on the achievement rate of¥48.5 billion¥32.7 billion
the evaluation criteria, with the ultimate goals
Industrial Machinery Products Businessof achieving the business budget and progress¥11.5 billion¥13.9 billion
Operatingof the medium-term management plan.
income (loss)
Material and Engineering Business(Evaluation criteria are set at the beginning of¥1.5 billion¥1.8 billion
each fiscal year by the Executive Board.)
Consolidated operating income calculated theoretically from
¥17.0 billion¥10.2 billion
dividend payout ratio

4

Annualremuneration

Performance- andresults-linked
component

Bonuses

Performance indicator

Operating income
basis component
Dividend basis
component

Annual dividend per share

¥50

¥35

Basic Policy and Procedure for Determining Remuneration for Audit & Supervisory Board Members

	The remuneration of each Audit & Supervisory Board member shall consist only of fixed remuneration (base component of annual remuneration)from the viewpoint of emphasizing independence and objectivity. The remuneration of each Audit & Supervisory Board member shall be
determined through discussions by the Audit & Supervisory Board.

Group Governance
The JSW Group consists of The Japan Steel Works, Ltd. and45 subsidiaries (32 consolidated, 13 non-consolidated). The
Group operates the Industrial Machinery Products Business,
Material and Engineering Business, and other businesses inJapan and around the world.
For Group companies, the JSW business division withprimary responsibility leads the formulation of management
policies and short- and medium-term management plans, andmonitors their progress. Furthermore, in order to appropriately
address various risks, we have established a system toensure that the execution of duties by directors complies withlaws and regulations and the Articles of Incorporation, as wellas other systems necessary to ensure the appropriateness ofoperations (internal control systems) on a Group-wide basis.
Specifically, we assign directors or Audit & Supervisory Board
members with the responsibility of supervising and auditing theexecution of duties at specific Group companies, in principle,
thereby ensuring that the execution of duties by directors, etc.
and employees at Group companies complies with laws andregulations and the Articles of Incorporation. In addition, inorder to address various risks, including external risks, generalmanagement strategy risks, and financial and profit/loss-relatedrisks, the Group has established various internal committees
and responsible departments, as well as the necessary risk
management system and management methods on a Groupbasis, to manage risks both comprehensively and individually.
Moreover, we have established a Group Compliance Programwith the goal of preventing the occurrence of legal or regulatory
violations and other incidents. The program establishes andoperates the necessary systems and structures, and conducts
regular reviews aimed at ongoing improvement.

Cross-Shareholdings
Policy on Cross1
	Shareholdings

The Company holds shares that it judges, through regular confirmation and review, to be necessary forpolicy purposes, and that contribute to the Company’s businesses over the medium to long term in ways
such as maintaining and strengthening sound, ongoing relationships with business partners, forming
business alliances, and supporting the sound development of investee companies.

Regular Confirmation and2	
Review of Shareholdings

Each year, the Company confirms the purpose of individual cross-shareholdings and current transaction
status, etc., and the Board of Directors verifies whether shareholdings are appropriate by comprehensively
considering the significance and purpose of the Company’s acquisition and holding of the shares, as wellas the safety, profitability, economic viability, risks and other factors associated with the shareholdings.

Policy on Exercise of3
	Voting Rights

The Company makes decisions on the exercise of voting rights based on factors including the businessconditions of the investee company and its business relationship with the Company, having confirmed thedetails of each proposal from the standpoint of increasing the investee company’s corporate value overthe medium to long term and fulfilling that company’s social responsibilities.

Status of Holdings
Number of Listed and Unlisted Stocks Held; Market Value of
Cross-Shareholdings on Balance Sheet ÷ Consolidated Net Assets
Market value of stocks ÷ Consolidated net assets■■■ Number of stocks held
(%)

100
80
60

92

90

31.9

29.2

40

88

50

85
69

22.4

16.1

17.6

20

40
30
20
10

0

0
2016

2017

49 JSW Integrated Report 2021

2018

2019

2020

When the significance of holding a stock is confirmed to bediminished, the Company reduces or liquidates such stock
holdings. In fiscal 2020, the Board of Directors reviewed theappropriateness of continuing to hold various stocks at its
meeting on September 24, 2020, and based on the results of
the review, the Company sold some of its holdings.

I will push for further reforms tostrengthen governance to achievesustainable growth in corporate value.
Sadao Degawa
Outside Director

I became an outside director of the Company in June 2018.
I was appointed to this position with the expectation that
I would draw on my experience as both a manager and atechnology developer to provide advice, mainly from a technicalangle, on the direction of the JSW Group’s medium- andlong-term business strategy and the supervision of executivefunctions. Since joining the Board, I have consciously focusedon two main points: setting the broad direction of managementthat will increase corporate value, and fostering awareness ofand strengthening systems for the Company’s risk management.
The Company’s governance is now in a period of change.
As well as the change in the composition of the Board of
Directors with the addition of another outside director, two
notable changes are that discussions on longer-term
management policies have increased and executive directors
are making statements from a more company-wide viewpoint.
A support system is in place for outside directors to help us
understand the Company’s current circumstances—for
example, we have the opportunity to attend the weekly
management strategy meetings as observers, and visits toplants are conducted twice a year. Outside directors also
regularly exchange opinions.
As a result, agenda items at Board meetings are brought up
and discussed to an appropriate degree, and the management
supervisory function is sufficiently effective. However, I feel it isnecessary to consider rethinking the agenda criteria of Board
meetings, given that the Company will transition to a monitoringfocused Board of Directors structure.
Shifting from “Supporting Society” to “Changing Society”
Up to now, the JSW Group has fulfilled the role of supporting
society by providing products and services in fields essential
to daily life, such as automobiles, power generation andmedical care. As people’s lifestyles change, however, the JSWGroup needs to shift its role from supporting society toactively changing society.
In that sense, the JSW Group has an abundance oftechnological assets, including in photonics and crystallization.
For example, once 5G becomes the norm, there will be more
opportunities for applying the technologies of the Group’s
photonics business. In the mobility (automotive) category, thetransition to all-electric vehicles will increase the importance ofpower semiconductors, and I have high expectations that thisis where the Group’s research and development of gallium nitride
will yield results. The Group has the very earnest and talented
human resources necessary to let its technologies blossom.
I firmly believe that by contributing to global development withmonozukuri and value creation based on the spirit of yompo-yoshi, these technologies and human resources can also
secure sustainable growth for the JSW Group.
Talent Development and Promotion and Remuneration
Systems Focused on the Medium and Long Term
I also serve as the chair of the Nomination Advisory Committee,
and I strongly feel the importance of cultivating people towhich the Company can entrust its future from a medium-tolong-term management perspective. Assuming a presidential
tenure of about six years, I think it is necessary to consider
broadening the targets of presidential succession planningbeyond current officers to also include general managers.
Therefore, I have advised that the Personnel Department
should think about linking training for managers with theexecutive candidate training program. As a member of theNomination Advisory Committee, I want to use opportunities
such as management strategy meetings and plant visits toactively communicate with future executive candidates.
Another issue I am aware of as a member of the Nomination
Advisory Committee is diversity. In addition to gender, employee
diversity also encompasses people with different values.
I believe the Company’s Board of Directors is becoming morediverse, but the times and the social environment are set tochange at a very rapid pace. Considering the significant timerequired to develop human resources, the JSW Group needs toseriously consider hiring people from outside to secure diversity.
Next, the remuneration system of the Company’s directors
has the same structural weighting for all officers, but as chairof the Remuneration Advisory Committee, I think that for thepresident at least, the proportion of performance-based
compensation could be higher. I also think the Company needs
to study and discuss the introduction of stock compensation
linked to medium- and long-term corporate value and asustainability-linked compensation system.
By leveraging its strengths in technology, prescience andinnovation to help change society, the JSW Group can movetoward the sustainability of the Group and society. To that
end, bold managerial decisions will be necessary; I want toprovide support as an outside director to make such decisions
possible. Moreover, proper execution of the oversight functionof the Board of Directors is a prerequisite for taking on an
appropriate amount of risk. I hope to meet my obligations toshareholders, investors and all other stakeholders throughmeasures to enhance the effectiveness of the Board of Directors,
as well as through my role on the two advisory committees.

(FY)

JSW Integrated Report 2021 50

Management Team (As of June 30, 2021)
NAC Nomination Advisory Committee

Directors

RAC Remuneration Advisory Committee

NAC (Chair)

Name

Naotaka Miyauchi

Title

Representative Director & President

Representative Director & Executive Vice President

Director & Managing Executive Officer

Director & Managing Executive Officer

Date of appointment to the Board

Jun. 2016

Jun. 2017

Jun. 2018

Jun. 2018

Number of shares of the Company held

23,853

14,313

13,072

10,123

Attendance record

14/14 (100%)

14/14 (100%)

14/14 (100%)CareerApr. 1981 Joined the Company
Apr. 2011	Deputy General Plant Manager, Hiroshima Plant
Apr. 2013	Executive Officer; General Plant Manager,
Hiroshima Plant
Apr. 2015	Managing Executive Officer; Deputy Directorof Machinery Business Division(Machinery Business Unit Head)
Apr. 2016	In charge of Ordnance Business
Headquarters; Director of Machinery
Business DivisionJun. 2016	Director & Managing Executive Officer
Apr. 2017	Representative Director & President(current position)

Apr. 1984	Joined the Company
Apr. 2013	Deputy General Plant Manager, Hiroshima Plant
Apr. 2015	General Plant Manager, Hiroshima Plant
Apr. 2016	Executive Officer
Apr. 2017	Managing Executive Officer; Director of
Injection Molding Machinery Business
Division; In charge of Hiroshima Plant
Jun. 2017	Director & Managing Executive Officer
Apr. 2020	Representative Director & Executive Vice
President (current position); In charge of Export
Control Administration (current position);
In charge of Plastics Machinery Business
Division, Injection Molding Machinery Business
Division, Industrial Machinery Business
Division (current position); In charge of Meiki
Plant (current position)
Apr. 2021	In charge of Ordnance Business Headquarters(current position); In charge of Business
Development Office (current position); In
charge of Hiroshima Plant and Yokohama
Plant (current position)

Apr. 1981	Joined the Company
Apr. 2013	Deputy General Plant Manager, Muroran Plant
Apr. 2015	Executive Officer; Deputy Director of SteelBusiness Division
Oct. 2017	General Manager, Personnel Department
Apr. 2018	In charge of CSR & Risk Management(current position); In charge of Export Control
Administration (current position); In charge of
Health & Safety Management and Environmental
Management (current position); In charge of
Secretary Office and General Affairs Department
Jun. 2018	Director & Executive Officer
Jul. 2018	In charge of General Affairs Department(current position); General Manager,
Secretary Office (current position)
Apr. 2019	Director & Managing Executive Officer(current position)
Apr. 2020	Chief Information Security Officer; In chargeof Office of Information Technology; In chargeof Personnel Department (current position)
Apr. 2021	In charge of Promoting ESG (current position)

NAC

RAC

Toshio Matsuo

Junichiro Deguchi

Directors

NAC

RAC

Takashi Iwamoto

Hiroki Kikuchi

Shingo Mito

Sadao Degawa

Director & Managing Executive Officer

Director & Executive Officer

Director

Jun. 2020

Jun. 2021

Jun. 2018

7,184

11,2283,194

14/14 (100%)

11/11 (100%)—

14/14 (100%)

Apr. 1983 Joined the Company
Apr. 2013	Deputy General Plant Manager, Muroran Plant
Apr. 2016	Executive Officer; General Plant Manager,
Muroran Plant
Oct. 2017	Director of Steel Business DivisionJun. 2018	Director & Executive Officer
Apr. 2020	Director & Managing Executive Officer(current position); Representative Director &President, Japan Steel Works M&E, Inc.
Apr. 2021	Chief Information Security Officer(current position); In charge of Promoting
Digitalization (current position); In charge ofMaterial and Engineering Business (current
position); In charge of Office of Information
Technology and Intellectual Property
Department (current position)

Apr. 1985	Joined Mitsui Bank (currently Sumitomo
Mitsui Banking Corporation)
Apr. 2012	General Manager, Nihonbashi-higashi
Corporate Business Office, Sumitomo Mitsui
Banking Corporation
Apr. 2015	Joined the Company
Jul. 2015	General Manager, General Affairs Department
Apr. 2016	General Manager, Secretary Office
Apr. 2018	Executive Officer
Jul. 2018	General Manager, Corporate Planning Office(current position)
Apr. 2020	Chief Financial Officer (current position),
In charge of Finance & Accounting
Department (current position); General
Manager, Business Development OfficeJun. 2020	Director & Executive Officer
Apr. 2021	Director & Managing Executive Officer(current position)

Apr. 1984	Joined the Company
Jul. 2006	General Manager, Personnel Department
Jul. 2011	Deputy General Plant Manager, Hiroshima Plant
Apr. 2014	Deputy Director of Machinery Business Division
Apr. 2016	Deputy Director of Research and Development
Headquarters
Apr. 2017	Executive Officer
Oct. 2017	Deputy Director of New Business Promotion
Headquarters
Apr. 2021	Director of New Business Promotion
Headquarters (current position)
Jun. 2021	Director & Executive Officer (current position)

Apr. 1977	Joined Ishikawajima-Harima Heavy Industries
Co., Ltd. (currently IHI Corporation)
Jun. 2009	Director and Executive Officer, IHI Corporation
Apr. 2011	Director and Managing Executive Officer,
IHI Corporation
Apr. 2012	Executive Vice President, IHI Corporation
Oct. 2015	Executive Vice President and Senior
Executive Officer, IHI Corporation(–Mar. 2016)
Apr. 2016	Director, IHI Corporation (–Jun. 2016)
Jun. 2016	Advisor, IHI Corporation (–Jun. 2020)
Outside Director, Nishishiba Electric Co.,
Ltd. (–Mar. 2020)
Jun. 2018	Director, the Company (current position)

Audit & Supervisory Board Members

RAC (Chair)

Executive Officers
Managing Executive Officer

Toyohiko Kagawa
Managing Executive Officer

Shigeki Inoue
Executive Officer

Yoshitaka Sato
Yoshiyuki Nakanishi NAC

Takashi Shibata

Toru Nishiyama

Fumihiko Tanizawa

Title

Director

Director

Audit & Supervisory Board Member (Full-Time)

Audit & Supervisory Board Member (Full-Time)

Audit & Supervisory Board Member

Audit & Supervisory Board Member

Date of appointment to the Board

Jun. 2020

Jun. 2020

Jun. 2021

Jun. 2019

Jun. 2019

Jun. 2020

Number of shares of the Company held

067

13,421

7,045

0

401

Attendance record

11/11 (100%)

11/11 (100%)—

13/13 (100%)

13/13 (100%)

10/10 (100%)CareerApr. 1978	Joined Dainippon Ink and Chemicals,
Incorporated (currently DIC Corporation)
Apr. 2010	Executive Officer, DIC Corporation
Jun. 2011	Director and Executive Officer, DIC
Corporation
Apr. 2012	Representative Director, President and CEO,DIC Corporation (–Dec. 2017)
Jan. 2018	Chairman of the Board of Directors, DIC
Corporation (–Jan. 2021)
Jun. 2020	Director, the Company (current position)
Outside Director, IHI Corporation(current position)
Jan. 2021	Director, DIC Corporation (–Mar. 2021)
Mar. 2021	Executive Advisor, DIC Corporation(current position)
Jun. 2021	Outside Director, Shimadzu Corporation(current position)

Apr. 1978	Joined Kao Soap Co., Ltd.
(currently Kao Corporation)
Jun. 2006	Executive Officer, Kao Corporation
Jun. 2010	Director and Executive Officer, Kao Corporation
Jun. 2012	Director and Managing Executive Officer,
Kao Corporation (–Mar. 2014)
Apr. 2015	Auditor, National Institute of Technology and
Evaluation (–Jun. 2019)
Jun. 2020	Director, the Company (current position)
Outside Auditor, LiveDo Corporation(current position)

Apr. 1984	Joined the Company
Apr. 2011	Deputy General Plant Manager, Muroran Plant
Apr. 2013	Executive Officer; General Plant Manager,
Muroran Plant
Apr. 2015	Managing Executive Officer
Apr. 2016	In charge of Wind Power Business Office;Director of Steel Business DivisionJun. 2016	Director & Managing Executive Officer
Oct. 2017	Director of New Business Promotion
Headquarters
Apr. 2018	In charge of Technology and Quality
Apr. 2021	Director
Jun. 2021	Audit & Supervisory Board Member(Full-Time) (current position)

Apr. 1982	Joined the Company
Sep. 2011	Deputy General Manager, Corporate
Planning Office
Apr. 2015	Deputy General Plant Manager, Muroran Plant
Apr. 2017	Executive Officer
Oct. 2017	Deputy General Manager, Technological
Strategy Office
Apr. 2018	General Manager, Internal Auditors OfficeJun. 2019	Audit & Supervisory Board Member(Full-Time) (current position)

Apr. 1976	Joined Mitsui Bank (currently Sumitomo
Mitsui Banking Corporation)
Jun. 2003	Executive Officer, Sumitomo Mitsui Banking
Corporation
Oct. 2006	Managing Executive Officer, Sumitomo
Mitsui Banking Corporation (–Mar. 2009)
Apr. 2009	Senior Managing Executive Officer,
Sumitomo Mitsui Financial Group, Inc.
Jun. 2009	Senior Managing Director, Sumitomo Mitsui
Financial Group, Inc. (–Jun. 2010)
Jun. 2010	Representative Director, Executive Officer
and Executive Deputy President, SMBC
Friend Securities Co. Ltd (currently SMBC
Nikko Securities Inc.) (–Mar. 2012)
Dec.2012	Representative Director, President andExecutive Officer, Horai Co., Ltd. (–Dec. 2019)
Jun. 2015	Outside Audit & Supervisory Board Member,
Sotetsu Holdings, Inc. (–Jun. 2019)
Jun. 2019	Audit & Supervisory Board Member,the Company (current position)

Apr. 1981	Joined The Mitsui Trust and Banking Company, Ltd.
(currently Sumitomo Mitsui Trust Bank, Limited)
Jul. 2008	Executive Officer, Chuo Mitsui Asset Trust andBanking Company, Limited. (currently Sumitomo
Mitsui Trust Bank, Limited)Feb. 2011	Managing Executive Officer, Chuo Mitsui Asset Trustand Banking Company, Limited.
Apr. 2012	Managing Executive Officer, Sumitomo Mitsui Trust
Bank, Limited
Jul. 2012	Advisor, Sumitomo Mitsui Trust Bank, Limited(–Sep. 2012)
Oct. 2012	Director and Vice President, Sumitomo Mitsui Trust
Asset Management Co., Ltd. (–Mar. 2016)
Apr. 2016	Audit & Supervisory Board Member, Sumitomo
Mitsui Trust Bank, Limited (–Mar. 2017)
Apr. 2017	Advisor, Sumitomo Mitsui Trust Bank, Limited (–Jun. 2017)
Jun. 2017	Deputy Chairman of the Board of Directors,
Director and Audit & Supervisory Committee Member,
Sumitomo Mitsui Trust Holdings, Inc. (–Jun. 2019)
Jun. 2019	Audit & Supervisory Board Member, Sumitomo
Mitsui Trust Business Service Co., Ltd (–Mar. 2021)
Jun. 2020	Audit & Supervisory Board Member, the Company(current position)
Apr. 2021	Advisor, Sumitomo Mitsui Trust Business Service
Co., Ltd (current position)

RAC

Hisao Mitsui

Hiroshi Misawa

Name

NAC

RAC

NAC

RAC

Executive Officer

Seiji Umamoto
Executive Officer

Shoji Nunoshita
Executive Officer

Takeshi Shinmoto

Note: Attendance record is for fiscal 2020 and indicates attendance at Board of Directors’ meetings in the case of directors, and attendance at Audit & Supervisory Board meetings in the case of Audit & Supervisory Board members.

51 JSW Integrated Report 2021

JSW Integrated Report 2021 52

Risk Management

Whistleblowing System
The JSW Group has formulated whistleblowing rules for the

Basic Approach
The Company and its Group companies have an important responsibility to minimize risks affecting the Group, ensure the ongoingdevelopment of the Group, and thoroughly fulfill their social responsibilities by appropriately and effectively managing various risks.

purpose of strengthening and promoting compliancedisadvantageous treatment of persons who make reports or

management, and has established a system for the proper

seek consultation is prohibited. In the event of disadvantageous

handling of reports and consultations from employees andtreatment, the Company will respond with appropriate measures,

others regarding potential organizational or individual violations

including disciplinary action.

of laws and regulations that may have been committed by

Framework

Anonymous reports and consultations are accepted and

The Whistleblowing Committee, chaired by the director in

employees or others associated with JSW or Group companies.

charge of risk management, investigates reported cases, andAt the JSW Group, risk management of the Company and its

in charge of risk management, will be promptly established to

In this way, the JSW Group is able to promptly detect potential

if a problem is identified, the committee will take appropriate

Group companies is overseen by the director in charge of risk

conduct a response. In fiscal 2020, in response to the spreadviolations of laws and regulations and take corrective action,action and implement corrective measures. In principle, the Board

management, who manages and operates risk in unison withof COVID-19 pandemic, we mobilized the Crisis Management

thereby minimizing risk and damage to the Group in the eventof Directors confirms the proper operation of the whistleblowinginternal control activities. The Internal Control Committee

Headquarters to monitor employee health, establish aof such a violation.

system twice a year based on reports from the committee.

shares information on potential and emerging key issues,

telecommuting system and address outbreaks of infection.

including the identification and evaluation of risks, and whennecessary, discusses risk responses and specific initiatives,and gives instructions and guidance to relevant departments

Risk Management Framework

Board of Directors andExecutive Board

as appropriate. With regard to risks relating to specific functions,such as health and safety, environmental management, andexport control administration, the relevant departments form
committees or establish rules from a Group-wide perspective
to ensure appropriate operations.
The management status of risks is monitored by the Internal
Audit Division and reported to the Board of Directors or the
Executive Board.
In the event of a major accident, disaster or materializationof any other risk that could cause serious damage to the JSWGroup, the Crisis Management Headquarters, led by the director

Reporting

Evaluation and auditing
Discussion anddecision-making,instructions and(Chairperson: Director in
guidance,
charge of Risk Management)
information
sharing, etc.

Internal Control
Committee

Internal Audit Division
Variouscommittees, etc.

Evaluation
and auditing

Head Office divisions, business divisions and plants
Monitoring, evaluation and guidance
Self-assessments

Group companies

Compliance
The JSW Group has established the Corporate Code ofinternal and external whistleblowing hotlines. Furthermore, we

14 in fiscal 2020, most of which were related to possible

display a manual on workplace bulletin boards and haveharassment. Reports were investigated by the committee

distributed a pocket version of the manual that employees

and appropriately addressed.

and others can refer to at any time.

Information Security

On a regular or as-needed basis, the Internal Auditors Office

The development of information processing technology and the spread of networks has increased the importance of information andinformation systems in improving the efficiency of office work and production technology, and speeding up decision-making. At thesame time, the threat of information leaks, falsification and destruction due to cyberattacks has grown, and the risks associated withthe possession of information have increased. In this environment, in order to continue to maintain the satisfaction and trust of customers
and to thoroughly fulfill our role, we recognize that it is an important management issue to accurately understand information-associatedrisks and protect the information assets entrusted to us by customers as well as the information necessary for doing business.

Framework

Training

The Chief Information Security Officer (CISO), appointed by

We conduct information security training (e-learning) for JSW
officers and employees to improve their security awareness.

Conduct and engages in business activities in compliance withaudits the overall operations of JSW to ensure complianceresolution of the Board of Directors, oversees information

ethics, laws and regulations, and international rules in bothwith laws and regulations and internal rules, and reports the

security measures at JSW. Persons in charge of information

letter and spirit, and with the understanding that compliance isresults to the president, as well as to the Board of Directors,

security management and information security administrators

an important element in building relationships of trust with society.

the Executive Board, the Management Council, and otherat the Head Office and each plant manage and promote therelevant parties, including Audit & Supervisory Board members.

proper operation of information security measures.

In addition, the Board of Directors has decided on the Basic
Policy on Internal Control and is developing internal control

In fiscal 2020, there were no violations of relevant laws andsystems. Recognizing the importance of the proper operation

regulations* that resulted in fines or penalties.

of these systems, the Internal Control Committee regularly* Relevant laws and regulations: Laws and regulations regarding the environment,
Industrial Safety and Health Act, Financial Instruments and Exchange Act, laws andregulations regarding export control administration, laws and regulations regarding
competition, laws and regulations regarding bribery, and Whistleblower Protection Act

reports on matters relating to internal control and its progress.

Promotion of Compliance Training
The Company is implementing the following measures to maintain and enhance awareness of compliance.
• Study sessions with experts (lawyers and other professionals) for directors (In fiscal 2020, cancelled due to COVID-19)• Conducted by JSW’s legal department, regular training sessions at plants, sales locations (branches and sales offices), and domestic JSW Group
companies (In fiscal 2020, training held only at the Hiroshima Plant due to COVID-19)

In addition, the Information Security Committee, chaired by•C onducted e-learning for officers and employees of JSW and Group companies to enhance awareness of compliance and ensure thorough risk
management (In fiscal 2020, held once with a 97% participation rate)

Participation Rate in Information Security Training(E-Learning)

Participation rate

FY2018FY2019FY202097.0%

100.0%

99.3%

the CISO, meets as necessary (three times in fiscal 2020) toreview the appropriateness of information security measures
based on the status of information security incidents and

Evaluation by Third-Party Organizations

accidents, internal and external threats, the business environment,

Assessments in Fiscal 2020

and the opinions and requests of employees and others.
Structure of the Information Security Committee
Chief Information Security Officer (CISO)
Executive Office•C onducted by JSW’s legal department, training sessions for Head Office business divisions (as needed)(In fiscal 2020, training on themes relating to sales contracts were conducted at the Plastics Machinery Business Division)

53 JSW Integrated Report 2021

The number of reports made was 8 in fiscal 2019 andBasic Approach

Information sharing
and reporting ofprocessing results

Evaluation,corrective action, etc.

In accordance with these rules, we have established(Office of Information
Technology, Head Office)Head Office∙ Persons in charge of information
security management∙ Information security administrator

Each Plant∙ Persons in charge of information
security management∙ Information security administrator

Assessment*

Results of evaluation

Information security risk
assessment

Overall rating: B (10-step scale;
A–J [lowest risk–highest risk])

Information leakage
communications assessment

Information leakage communications
assessment overall rating: A(no communications corresponding
to information leakage)* Assessments consist of intrusion inspections and vulnerability assessments ofcompany network systems, based on information security benchmarks andcarried out by security vendors with information security management system(ISO/IEC 27001) certification.
JSW Integrated Report 2021 54