IWATSU ELECTRIC CO., LTD.

FY2023

Sustainability
ReportSustainability Report 2023

Corporate Philosophy

Contributing to the creation of a society filled with purpose throughBasic Policy on Sustainability

Based on our corporate philosophy, we will support the growth and development of companies and the people
working at companies through the provision of communication technology that connects people and things,
and aim to achieve a sustainable society and enhance corporate value.

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

communication that connects everyone and everything2Contents

Sustainability Management

Environment

Society

GovernanceAppendixContents
04 Editorial Policy
05 Top Message

24

Environment

66

Governance

67 Corporate Governance Structure

30 Response to Climate Change Issues

68 Internal Control and Risk Management

37 Management of Chemical Substances

69 Information Security Management

08 Message from the Officer in Charge of
Sustainability

38 Prevention of Environmental Pollution

71 Personal Information Protection Management

39 Management of Water Resources

73 Business Continuity Planning (BCP)

09 Sustainability Promotion Structure

40 Biodiversity and Forest Conservation

10 Stakeholder Communication

41 Resource Recycling

07

Sustainability Management

11 Value Chain Map
12 Key Sustainability Issues Map
13 Key Sustainability Issues and Our Vision
16

19

22

ColumnResponding to Climate Change Risks andOpportunities
ColumnDevelopment of Attractive New Products andServices through Technological Innovation
ColumnProducts and Services to Solve Social Issues

43

Society

44 Respect for Human Rights and Diversity

74

Appendix

75 GRI Standards Content Index

51 Human Capital Development
53 Health and Productivity Management
Work-life Balance
56 Occupational Health and Safety
59 Supply Chain Management
60 Quality Management

78 Corporate Profile© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

25 Environmental Management

62 Community Contribution Activities
3

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Editorial Policy
At the IWATSU Group, we aim to contribute to theestablishment of a sustainable society under our Basic
Policy on Sustainability and help solve social issues
through our business activities.
This report discloses the sustainability initiatives the
IWATSU Group is implementing from an ESG perspective
to promote communication with stakeholders.
In preparing this report, we referred to the GRI
Standards and international guidelines on information
disclosure.

Initiatives We Support

Sustainable Development Goals (SDGs)

Task Force on Climate-related Financial
Disclosures

Fun to Share, a climate change campaign
organized by the Ministry of the Environment
Fun to ShareIn principle, this report covers IWATSU Electric Co., Ltd. and allof its consolidated subsidiaries. Where matters related only to
specific organizations are reported, the names of the organizations
are stated individually.

Reporting Period
From April 1, 2022, to March 31, 2023 (fiscal 2022)
 The report includes some information from outside the period of
the report.
 FY2022 is the fiscal year ended March 31, 2023, and FY2023 is
the fiscal year ending March 31, 2024 (other fiscal years follow
this pattern).

Period of Issuance
September 2023

Reference Guidelines

CDP (Carbon Disclosure Project (Climate
Change))Climate Change Initiative(Japan Climate Initiative(JCI))© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Organizations Covered

GRI Sustainability Reporting Standards (GRI Standards) 2016,2018, 2019, 2020 and 2021

4

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Top Message
Solving social issues with new solutions, aiming to establish
sustainable society that is filled with purpose

President & Chief Executive Officer■ Sustainability Management Initiatives
I believe that sustainability management means
addressing environmental and social issues to build asociety that is filled with purpose
At the IWATSU Group, we have begun to instituteinitiatives to fully address our key sustainability issues in aGroup-wide manner, with the ESG Committee playing acentral role, to promote management from an ESG
perspective.
For example, to tackle the problem of climate change,
we have disclosed risks, opportunities, and a greenhousegas reduction plan in conformance with the SBT
certification criteria for information disclosure based on the
TCFD recommendations. At the same time, we arepromoting initiatives to achieve the 1.5 °C target. We also
reviewed our emissions to ensure our Scope 3 emissions
reduction target is consistent with the SBT certification
criteria with its energy design standard. We will enhance
our lineup of products that meet these standards, thus
promoting the reduction of greenhouse gas emissions fromthe use of IWATSU Group products.
In addition, we have established the IWATSU Group
Human Rights Policy and Procurement Guidelines andbuilt a framework for promoting sustainability managementin our business activities as a whole, including our supply
chain. Moving forward, we will work to ensure theseguidelines become entrenched among our business
partners and request that they comply with the guidelines.

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Shogo Kimura,■ Changes related to sustainability and the
expectations for IWATSU
The IWATSU Group started its medium-term
management plan, REBORN, in May 2022 and expressed
its intention to reshape itself and help establish asustainable society through its business.
However, we feel that social issues related tosustainability remain as serious as before, including thehuman rights risks and food problems associated with the
Ukrainian crisis, the increasingly serious natural disasters
attributed to climate change, and COVID-19 which has
been reclassified as a class 5 infectious disease but has
yet to subside.
Above all, regarding the climate change problem, aonce-in-a-century rainfall occurs almost every year withfrequent flooding damage, and we must accelerate thereduction of greenhouse gas emissions of the supply chain
as a whole and of society.
In addition, the demands and expectations placed oncompanies are also growing with respect to business andhuman rights, including human rights risks in supply
chains, gender issues and diversity.
Reflecting these changes in society andexpectations, the IWATSU Group will push forward withsolutions to social issues through actions to address the
key sustainability issues that it has identified. And we willcontribute to the achievement of the SDGs and theestablishment of a sustainable society.

5Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Top Message■ Evolving into an organization where we can work
energetically and play an even more active role
To provide the driving force needed to promotesustainability management, each employee and office must
develop an understanding of, and a sensitivity to,sustainability. At the same time, it is essential that
employees work energetically in good health and maximize
their qualities.
Based on this idea, we have made the promotion ofhealth and productivity management a key sustainability
issue and have set the goal of being selected by the
Certified Health & Productivity Management Outstanding
Organizations Recognition Program. We are also
reforming our workstyles and culture on a number of fronts,
including the institutionalization of teleworking, which we
introduced to address COVID-19, and the introduction ofcasual wear in the office.
While the creation of new technologies, business, andvalue is important in addressing social issues, it is equallyimportant to invest in people continuously and support
diverse human resources to facilitate their retention.
We will have highly motivated human resources
accelerate the passing down of technologies that are the
IWATSU Group's core competencies and the adoption ofleading-edge technologies, including 5G, energy,
healthcare and materials technologies. We will thus
provide new value to customers and society and improve
this value based on the feedback that is provided.
Meanwhile, we will continue to strengthen sustainabilityrelated awareness reforms and human resource
development, thus activating internal and external
communication, improving engagement, and fostering a
corporate climate filled with purpose, in which we makeGroup-wide efforts to resolve key sustainability issues andcontribute to achieving the SDGs.

■ To Our Stakeholders
At the IWATSU Group, we will strengthen partnerships
and drive sustainability management under our mediumterm management plan so that we can continue tocontribute to building a sustainable society.
I respectfully ask that our stakeholders place their hopeson the future of the IWATSU Group and continue tosupport us.

Medium-term management plan

Medium-term management plan FY2022–2025
https://www.iwatsu.co.jp/wpcontent/uploads/2022/12/chukei20220513.pdf© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

■ Growth strategy that solves social issues
The themes of our growth strategy in the medium-term
management plan we announced in May 2022 are thegrowth of the test and measurement equipment business,the growth of the business communication systems
business, and the development of new domains.
In the test and measurement equipment business, weare moving forward with the development of high-speed,
high-precision measurement equipment for powerelectronics semiconductors that use SiC or GaN. I believethat we can accelerate the realization of a carbon-neutral
society by enabling the IWATSU Group's test andmeasurement equipment to support the manufacturing of
power electronics semiconductors used in EVs and wind
power generation.
In business communication systems, we have begun toprovide Blue Commpaas, an in-house communication
platform. This is a cloud-based solution that provides
communication functions and services for contact centersand offices. While means of communication are becoming
more diverse, this platform creates a lot of value, such as
helping to reduce operators' workloads, mitigating the labor
shortage, and improving customer convenience.
Regarding the development of new domains, in October
2022 we established IWATSU Chemical Cross Co.,
Ltd., whose mainstay business is chemical products.
Based on the chemical technologies cultivated in our
printing business, we will operate the new business with afocus on conductive polymers, thus expanding the domains
where we contribute to society.
In this way, we are achieving the "social progress anddevelopment through products and services" that we haveset as one of our key sustainability issues.

6

Contents

1

Sustainability Management

Environment

Society

GovernanceAppendix

S u stain ab ility Man ag emen t© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

7

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Message from the Officer in Charge of Sustainability
Enhancing our corporate value and achieving a sustainable
society by promoting initiatives to address key sustainability
issues and disclose information

Director andExecutive Officer,
General Manager ofthe Management Division

Hidenori Tokida■ Initiatives for business and human rights
We understand that, due to the recent trend towards theglobalization of corporate activities, the risk of companies
violating human rights has been increasing.
We must seriously address the human rights risks in not
only our business activities but also our supply chain, suchas risks related to conflict minerals and child labor.
The term human rights appears a few times in the 17
goals and 169 targets of the SDGs. However, the preamble
to the 2030 Agenda for Sustainable Development says that
all of the goals and targets are related to human rights. We
understand that all of the key sustainability issues the
IWATSU Group identified with the goal of helping toachieve the SDGs are also human rights initiatives.
At the IWATSU Group, we established the IWATSU
Group Human Rights Policy in March 2023. At present, weare identifying and evaluating human rights risks in the
IWATSU Group's businesses and supply chain. Guided bythis policy, we will implement initiatives for theestablishment of a sustainable society where no one will beleft behind, a principle of the SDGs.

■ Enhanced Disclosure of Non-financial Information
The International Sustainability Standards Board (ISSB)
published the IFRS S1 and IFRS S2 international
standards for the disclosure of sustainability information.
We hear that the final standards will be published in Japanin FY2024.
In this environment, the IWATSU Group began todisclose information about sustainability management. Its
first disclosure was via the FY2022 securities report. In
addition, we will disclose this information via thesustainability report and the website, thus enhancing
communication with our stakeholders.
■ Enhancing corporate value with initiatives toaddress key sustainability issues
It is believed that initiatives to address key sustainability
issues which are connected to sustainability management
will lead to not only the improvement of non-financial value
but also the enhancement of corporate value as a whole,including financial value, over the medium to long term.
As a company oriented toward solutions to social issues,
the IWATSU Group will continue to implement initiatives toaddress key sustainability issues as the main axis of oursustainability management to both enhance our corporate
value and establish a sustainable society.

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

■ Information Disclosure Based on TCFD Proposal
Climate change, associated with global warming,
is identified as a cause of torrential rains, major typhoons,droughts and other disasters. It is a critical social issue that
we should address together right now.
Among the seven key sustainability issues that the
IWATSU Group identified in its medium-term management
plan announced in May 2022, three are related to theclimate change problem.
In addition, the importance of the Paris Agreement
1.5 °C target was reconfirmed at the 27th Conference of
the Parties of the United Nations Framework to Combat
Climate Change (COP27) held in November 2022.
At the IWATSU Group, we have evaluated the risks andopportunities related to climate change in our businessactivities, keeping in mind the importance of the 1.5 °C
target and the resolution of the three key sustainability
issues related to climate change. We manage the identified
risks and opportunities together with other management
risks in an integrated manner. We are implementing
measures to reduce risks and take advantage ofopportunities under the leadership of senior management.
In February 2023, we disclosed these risks andopportunities and our CO2 reduction targets in accordancewith the recommendations of the Task Force on Climaterelated Financial Disclosures (TCFD). Moving forward, we
will focus our efforts on managing these risks andopportunities and reducing CO2 emissions.

8Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Sustainability Promotion Structure
Board of Directors

ReportStakeholder Engagement
Stakeholders

Plan

Do
ChairmanAt the IWATSU Group, we have established and an ESG
Committee with the goals of establishing a sustainable
society through our business activities, increasing thetransparency and credibility of our management andenhancing our corporate value over the medium to longterm based on our Corporate Philosophy and Basic
Sustainability Policy.
This committee is pushing forward with sustainability
activities by promoting and monitoring activities,
deliberating issues, and making decisions, with the aim ofresolving the key sustainability issues set forth by the
IWATSU Group, led by the officer responsible forpromoting sustainability.
Further, the content of the committee's meetings arereported to the Board of Directors, which confirms the risks
and opportunities related to sustainability management andthe effectiveness of the activities related to sustainability
management.
This sustainability report has also been deliberated by
the ESG Committee and reported to the Board of Directors.

ESG Committee

Corporate Planning
Department

Administration
Department

Sales
Department

Development
Department

Production
Department

Group Companies
ActionCheck

IWATSU Group© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Secretariat

President

9

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Stakeholder Communication
At the IWATSU Group, we work to ascertain the
expectations of society through communication with all
stakeholders and promote initiatives aimed at achieving asustainable society. We also endeavor to build
relationships of trust with stakeholders through such
communication.

Major stakeholders

Main initiatives

Means of communication
Sales activities

Customers

Creating better services and products, responding tocomplaints, and disclosing appropriate information
related to products and services

Dealing with Inquiries
Websites / Social media

Customers

Localcommunities
IndustrygroupsGeneral Meeting of Shareholders
Financial results briefing
IR meetings
Procurement activities

Employees

Suppliers

Suppliers

Creation of fair and neutral trading relationships andsmooth information sharing aimed at the creation of
better partnerships

Questionnaire on the Sustainability Procurement
Guidelines
Holding seminars on materials

Provision of value

Labor-management conferences
Dialogue
Employees

Demands and expectations

Environmental
initiatives

Governanceinitiatives

Distributing and sharing information through internal
newsletters and the intranet
Various training programs
Meetings for dialogue between senior management andemployees

IWATSU Group
Providing
products
andservices

Active utilization of human resources, appropriate
benefits, and strengthening of occupational health andsafety management systems

Socialinitiatives

Industry groups

Response to laws and regulations in Japan and othercountries

Local communities

Execution of responsibilities as a corporate citizen andparticipation in regional communities

Participation in industry bodies (CIAJ and JEMIMA)*
Contribution to regional communities through ourbusinesses© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Shareholders
and investors

Shareholders / Investors

Timely and appropriate information disclosure,appropriate valuation and support from capital markets
and reflection of the perspective of shareholders andinvestors in management

Participation in volunteer activities*CIAJ: Communications and Information Network Association of Japan, JEMIMA: Japan Electric Measuring Instruments Manufacturers' Association

10

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Value Chain Map
At the IWATSU Group, we aim to provide sustainablevalue through our engagement with all stakeholders
involved with our business activities.
Going forward, we will continue to identify changes insocial issues and the environment, as well as problems
related to human rights, etc., and work not just byourselves, but together with a diverse range ofstakeholders to solve social issues in the value chain andpromote sustainability. By doing so, we will also contributeto increasing the competitiveness and corporate value ofthe IWATSU Group.

Product
planning anddevelopment

Business
communication
systems business■ Initiatives in Our Value Chain• Energy- and resource-saving design• Limiting the use of harmful chemical substances• Promoting shared architecture

Procurement• Procurement based on the Sustainability
Procurement Guidelines(human rights and labor, safety and health,environment, fair trade and ethics, quality andsafety, information security, BCP, etc.)• Promotion of responsible supply chain
management

Production• Improving production efficiency through the digitaltransformation of plants, etc.
• Reducing CO2 emissions• Reducing the use of harmful chemical substances• Promotion of occupational safety and labor hygiene

Sales andmarketing• Improves customer satisfaction• Provision of safe and high-quality products• Enhancing product and service information
provided via websites, etc.

Maintenanceand service• Strengthening the support system• Improving the quality of services

Test andmeasurement
equipment
business

Production

IWATSU Group

Feedback

Printing
systemsbusiness
Maintenance
Mainteand service

Sales andmarketing

nance
and
service

Reinforcing the foundation supporting sustainability
Risk management

Human resources

Corporate governance© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Product
planning anddevelopment

Procurement

11Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Key sustainability Issues Map
Key sustainability Issues Map
Very highKey sustainability issues andthemes of activities to becontinuously implemented
Actions to recycle resources

Key sustainability issues and activity themes to be managed as priorities during the
medium-term management plan
Design of products to minimize

2 the impact on the ecosystem

3

Expansion of introduction of

Promotion of communication andcoexistence with local communities

3 renewable energy

6

3 improving business process efficiency

32

Enhancing customer satisfaction by improving

4 the quality of products and services

Strengthening and

7 promotion of

Identify future challenges in business and value chain

High

Contributing to a carbon-neutral society through test andImproving the energy efficiency ofour products

Reducing GHG emissions related topurchased products and services

Respect for human rights and1

5 diversity

Human resource development and5 technological transfer

Promotion of health andproductivity management

Very high■ Key sustainability issue categories

1 Promotion of procurement activities that take2 Provision of environmentally-friendly products
and services

3 Reduction of the environmental impact of the
Evaluate and determine critical issues

1 Building a resilient supply chain

Level of importance to our businesses

sustainability into consideration

Identify critical issues

Highly transparent and credible
external disclosure of information

5

Environment
Select activity themes for the future

7

2 measurement technologies■ Key sustainability Issues Identification Process
Organize issues of existing businesses

Development of attractive new products and services basedon technological innovation

governance

Reducing GHG emissions by

Preventing environmental
pollution and conserving
biodiversity

4

activities of business sites

Society
4 Social progress and development throughproducts and services focused on connection,measurement and communication

5 Respect for diversity and increase inemployee job satisfaction

Governance
7 Creation of governance systems that arehighly transparent and credible for enhancing
corporate value© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Importance for stakeholders

The external environment is growing more complicatedas climate change intensifies, the birth rate declines, thepopulation ages, the digital transformation progresses, andother changes occur. Further, social issues have surfaced
and are growing more serious.
To accelerate sustainability management in response tothese social conditions, we at the IWATSU Group haveidentified, in 2022, key sustainability issues inconsideration of IWATSU’s strengths and by determining
future issues that will impact our businesses and value
chain and assessing their importance from the two
perspectives of our stakeholders and our businesses.
We will continue to promote activities to resolve social
issues through these initiatives, aiming to increase ourcorporate value over the long term.

6 Promotion of communication and coexistencewith local communities

12

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Key sustainability Issues and Our Vision — Environment
1. Promotion of procurement activities that takesustainability into consideration
We will continue working to build and operate a
supply chain that is resilient to disasters caused byclimate change and that considers conflicts and humanrights. We will thus promote carbon neutrality
and contribute to maintaining and increasing theprosperity of all of the people involved in our supply
chain.

3. Reduction of the environmental impact of theactivities of business sites
In addition to implementing our existing initiatives toreduce environmental pollution, we will proactively use
renewable energy and establish resource recycling
systems to reduce the environmental impact of ourbusiness activities and contribute to the conservation of
the global environment, including protection of natural
capital.

123Promotion of procurement
activities that takesustainability into
consideration

Provide eco-friendly
products and services

Reduction of theenvironmental impact of
the activities of businesssites

Purpose of activities

Vision for 2030

Building a resilient supply chain

Building and operating a supply chain that is resilient in
the face of disasters caused by climate change and thatconsiders conflict and human rights

Reducing GHG emissions related
to purchased products andservices

Achieving science-based targets for the reduction of
Scope 3, Category 1 and 4 emissions

Contributing to a carbon-neutral
society through test andmeasurement technologies

Contributing to the reduction of GHG emissions bysupporting the global development of energy-efficientequipment using power electronics test and measurement
technologies

Improving the energy efficiency ofour products

Achieving science-based targets for the reduction of
Scope 3, Category 11 emissions

Design of products to minimize theimpact on the ecosystem

Ensuring that 100% of new products comply with our own
environmental label certification

Reducing GHG emissions byimproving business process
efficiency

Achieving science-based targets for the reduction of
Scope 1 and 2 emissions

Expansion of introduction ofrenewable energy

The achievement of net zero GHG emissions frombusiness sites by 2050 is in sight due to expansion of theintroduction of solar power generation equipment and theintroduction of electricity from renewable energy sources.

Preventing environmental pollution
and conserving biodiversity

Contributing to protecting the environment and biodiversity
by reducing chemical emissions, including VOCs and
PRTR-regulated chemicals, and complying with standards
for emissions into the atmosphere and water areas

Resource Recycling

Contributing to a circular economy by establishingrecycling schemes for our products and reducing thewaste emissions of our business sites

SDG contributions© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

2. Provision of environmentally-friendly products
and services
We will contribute to protecting the global
environment by supporting the global development ofenergy-efficient equipment using our test andmeasurement technologies.
We will also continue to work to ensure that our
products are environmentally friendly and mitigate theirimpact on the ecosystem to contribute to protecting theenvironment for our customers, including by addressing
climate change issues.

Key sustainability issues

13

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Key sustainability Issues and Our Vision — Society
4. Social progress and development leveraging
products and services focused on connection,measurement and communication
We will contribute to solving problems faced bycustomers and society by continuing to innovate todevelop technologies that link people and goods with afocus on connection, measurement and communicationand through the widespread delivery of increased
performance and quality to our customers.

Key sustainability issues

4Social progress anddevelopment throughproducts and services
focused on connection,measurement andcommunication

6. Promotion of communication and coexistencewith local communities
We will continuously promote coexistence with local
communities, which support the company, such as bycooperating with local governments and participating
proactively in charity events.

Development of Attractive New
Products and Services throughTechnological Innovation

Contributing to solving social issues with products andservices that take advantage of IoT, AI, andmeasurement technologies for power electronics
semiconductors

Enhancing customer satisfaction by
improving the quality of products
and services

Enhancing customer satisfaction by improving productquality continuously, and preventing serious market
accidents continuously by ensuring safe design

Respect for human rights anddiversity

5

6

Respect for diversity andincrease in employee job
satisfaction

Promotion ofcommunication andcoexistence with local
communities

Vision for 2030

Human resource development andtechnological transfer

Increasing the percentage of managers that are women tobuild an organization that enables women to fully
demonstrate their capabilities.
Work to achieve the statutory employment rate for people
with disabilities
Building a human resource development system fortechnological innovation as underlying support for the
expansion of new businesses
Maintaining our unique technologies through the wellplanned transfer of technology

Promotion of health andproductivity management

Establishing an environment that enables every employee
to fully demonstrate their capabilities and work
energetically and increasing employee awareness ofhealth and productivity management

Promotion of communication andcoexistence with local communities

Promoting symbiosis with local communities throughactivities such as cooperation with local governments,
participation in charity events and the promotion of
employees' volunteer activities.

SDG contributions© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

5. Respect for diversity and increase in job
satisfaction for employees
We will respect the human rights and diversity of
employees and provide them with health andproductivity management and human resource
development opportunities in our efforts to build anenvironment that enables every employee to fully
demonstrate their capabilities and work energetically.

Purpose of activities

14

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Key sustainability Issues and Our Vision — GovernanceKey sustainability issues

7. Creation of governance systems that are highly
transparent and credible to enhance corporatevalue
We will strengthen corporate governance to achieve
fair and transparent management that has the trust ofsociety and our stakeholders.

Purpose of activities

Vision for 2030

SDG contributions

Continuously promoting more transparent corporate
governance7

Creation of governancesystems that are highly
transparent and crediblefor enhancing corporate
value

Strengthening and promotion of
governance

Promoting diversity in the appointment of officers(including female officers)
Continuously working to prevent major complianceviolations

Highly transparent and credible
external disclosure of information

Appropriately disclosing information through IR, oursustainability report, etc., and promoting dialogue withstakeholders

2014

2016

2017

Establishment of
Officer’s Compensation
Advisory Committee*

2018
Establishment of theRemuneration and Nomination
Advisory Committee

2021
Shifted to a company
with Audit & Supervisory
Committee

Evaluation ofeffectiveness of theBoard of Directors
Verification of results ofcross-shareholdings by
the Board of Directors

Enhancementof Corporate
Governance© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

In order to enhance corporate value, achieve unending development, and ensure co-prosperity with stakeholders, we will continue promoting
stronger governance, under our basic policy of ensuring transparency and incorporating a diverse range of opinions and wide-ranging
knowledge.

Appointment of outside
directors*In 2018, the Officer Remuneration Advisory Committee was changed to the Remuneration and Nomination Advisory Committee.

15

Contents

ColumnSustainability Management

Environment

Society

GovernanceAppendix

Responding to Climate Change Risks and Opportunities
Information Disclosure Based on TCFD Proposal■ Commitment to SBTi1 and TCFD2 recommendations
Climate change, which has occurred due to global
warming, is causing a range of abnormal weather events. It
has become a critical issue that the international
community and companies should work together as one toaddress.
At the IWATSU Group, we have identified three key
sustainability issues for addressing this issue: thepromotion of procurement activities that take sustainability
into consideration, the provision of environmentally-friendly
products and services, and the reduction of theenvironmental impact of the activities of business sites.
At the IWATSU Group, to accelerate initiatives toaddress these key sustainability issues, we submitted
a commitment letter to the Science Based Targets initiative(SBTi) in December 2021 and expressed our intent toacquire SBT certification within two years.
In addition, in August 2022 we expressed ourcommitment to the TCFD recommendations, which are
aimed at reducing the risk of instability of financial markets
caused by climate change. In February 2023, we disclosed
information in accordance with the TCFD
recommendations.

■ Governance
WE at the IWATSU Group believe that climate change
and the other problems related to the natural environment
are important issues in our promotion of sustainability
management. Based on this idea, we identified climatechange risks and opportunities and determined strategies
and countermeasures through the deliberation of our ESG
Committee chaired by the President & Chief Executive
Officer.
Receiving detailed reports of the committee's meetings,
the Board of Directors manages the determined climatechange risks and opportunities together with othermanagement risks and makes decisions regarding our
responses to these risks and opportunities.
Further, the status of the initiatives to address climatechange risks and opportunities are monitored by the ESG
Committee.
➡ See page 9 for our governance system.

■ Strategy(process of identifying risks and opportunities)
The IWATSU Group has three main
businesses: business communication systems, test andmeasurement equipment and printing systems.
Because the expected risks and opportunities aredifferent for each business and supply chain, we took thefollowing perspectives for each business and stakeholder,
identified the climate change risks and opportunities facing
the IWATSU Group, and assessed their financial impact asof 2030.
Transition risks (1.5°C scenario)
 Policy and legal: Stronger regulations related to GHG
emissions Market: Changes in energy supply and demand / changes indemand for low-carbon products Technology: Development and spread of next-generation
technologies
 Reputation: Changes in reputation among stakeholders

Information Disclosure Based on TCFD Proposal
https://www.iwatsu.co.jp/sus/tcfd/

Physical risks (4.0°C scenario)
 Chronic: Environmental change as a result of global warming Acute: Increasing severity of natural disasters*An initiative of the WWF, CDP, World Resources Institute (WRI) and United Nations Global
Compact aimed at encouraging the setting and announcement of science-based GHG emissions
reduction targets and actions to achieve the goal of limiting the global temperature rise to well
below 2 °C above the pre-industrial level, which was set by the Paris Agreement.

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Commitment to global initiatives*The Task Force on Climate-related Financial Disclosures (TCFD) was established by the G20
and the Financial Stability Board (FSB) with the goal of encouraging the disclosure of information
about climate-related risks and the financial impact of climate change.

16

Contents

ColumnSustainability Management

Environment

Society

GovernanceAppendix

Responding to Climate Change Risks and Opportunities■ Strategy (identification and assessment of risks andopportunities and countermeasures)
We identified risks and opportunities using 1.5 °C and
4.0 °C climate change scenarios, narrowed down the list of
possible material issues from the perspectives of impact
and probability, and evaluated anddetermined countermeasures after assessing them fromthe perspectives of feasibility and degree of effect.

■ Strategy (expected financial impact)
4 °C scenario
 Increasing severity of natural disasters (physical risk (acute))
1.5 °C scenario
 Increase in product development expenses for the CO2 emissions reduction due to stricter regulations related to GHG emissions, as well as theimposition of carbon taxes (transition risk (policy and legal)) Changes in profitability attributed to the rapid increase of energy prices resulting from changes in energy supply and demand(transition risk (technology))

Risks and Opportunities Identified in Our Businesses, and Countermeasures

Transition
risk

Physicalrisk

Scenario

Expected impact from climate changeCountermeasures• Increase in development costs associated with demand for lower CO2 emissions amongcustomers and the introduction of carbon pricing• Suspension of trading and loss of business opportunities if we are unable to respond
appropriately to customers’ demands for lower CO2 emissions, etc.
• Rising cost of energy usage in line with the introduction of carbon taxes• Capturing of business opportunities from promotion and achievement of energy
conservation for our products• Reduction in energy usage from updates to aging facilities and the introduction of the latest
equipment• Increase in fuel/electricity expenses owing to rapid increases in fuel prices and anincreased proportion of renewable energy• Promotion of energy conservation and introduction of facilities to generate power fromrenewable energy

Policy andregulations

Stricter regulations related to GHG
emissionsTechnology

Changes in energy supply anddemandMarketDevelopment and spread of nextgeneration technology• Increases in the procurement prices of components and materials owing to decarbonization • Long-term measures to reduce costs through revisions to procurement methods andmeasuresdesigns

Chronic

Environmental change as a result of
global warming• Increase in people suffering from heatstroke, illnesses related to climate change, and inpoor physical condition• Redevelopment of the labor environment, mainly revisions to air-conditioning• Decline in revenue owing to the suspension of operations or lower utilization rates at plants
and business sites as a result of natural disasters• Implementation of disaster simulations and development of disaster response manuals• Promotion of the development of environmentally-friendly products through theestablishment of sustainability procurement guidelines and the strengthening of productassessments

1.5°C

4.0℃

Acute

Increasing severity of natural
disasters

Policy andregulations

Stricter regulations related to GHG
emissions• Enhance competitiveness by responding quickly to customers’ supply chain guidelines andcarbon pricing

Changes in demand for low-carbon
products• Increase in demand for power electronics test and measurement equipment as a result of
the spread of devices and equipment that use power semiconductors, such as electric• Performance enhancements and expansion in line-up for the Company’s power electronics
vehicles (EVs)test and measurement equipment• Diverse range of needs as a result of the expansion of the market for power electronics test
and measurement equipment

Opportunities
MarketDevelopment and spread of nextgeneration technology

1.5°C• Establishment and spread of advanced energy-conservation technologies• Improvement in people’s views of the Company as a result of the acquisition of SBT
certification, for which there is high demand among customers• Stronger products as a result of the incorporation of new energy-conservation technologies
in the Company’s products• Acquisition of SBT certification and implementation of measures to achieve CO2 reduction
targets© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Classification of climate change-related risks
and opportunities

17

Contents

ColumnSustainability Management

Environment

Society

GovernanceAppendix

Responding to Climate Change Risks and Opportunities

Scope 1 and 2 emission reduction targets
 42% reduction from the emissions in the baseline year (4.2%
reduction per year)• We aim to achieve a 42% reduction from the emissions in
the baseline year, which were 5,565 t-CO2, to 3,228 t-CO2.*1
Scope 3 emission reduction targets
 25% reduction from the emissions in the baseline year (2.5%
reduction per year)• We aim to achieve a 25% reduction from the emissions in
the baseline year, which were 114,678 t-CO2, to 86,009 tCO2.

*1. The Scope 1 and 2 emissions reduction target was corrected because the target reported in
the previous fiscal year was provisional.
*2. The reduction was calculated applying the 2030 target CO2 emission intensity for electricity
generated that was set by the Federation of Electric Power Companies of Japan, 0.37/kg-CO2.
It was set assuming that a 24% reduction from the (actual) CO2 emission intensity forelectricity generated in 2020 will be achieved.
*3. Where no additional measures are taken (business as usual)IWATSU Group's Scope 1, 2, and 3 emissions in the baseline year
(FY2020)

IWATSU Group's Scope 1 and 2 emissions reduction target
8,191[t-CO2]Category

EmissionsElectricity
companies efforts
to reduce*2［t-CO2］

1,526［t-CO2］

Ratio

Scope1

Direct emissions

1,311

1.1%

Scope2

Indirect emissions

4,254

3.5%

Scope3

Other emissions

114,678

95.4%

Cat.1

Purchased products andservices

65,336

54.3%

Cat.2

Capital goods

3,218

2.7%

Cat.3

Energy which is not included in
Scope 1 or 2

839

0.7%

Cat.4

Transportation (upstream)

5,429

4.5%

Cat.5

Waste

376

0.3%

Cat.6

Business travel

189

0.2%

Cat.7

Employee commuting

1,076

0.9%

Cat.8

Leasing (upstream)

ー

0.0%

Cat.9

Transportation (downstream)

121

0.1%

Cat.10

Processing of products

ー

0.0%

Cat.11

Use of products

37,81931.5%

Cat.12End-of-life treatment of
products

14

0.01%

Cat.13

Leasing (downstream)

262

0.2%

Cat.14

Franchises

ー

0.0%

Cat.15Investments

ー

0.0%

5,565

Reduction throughenergyconservation

Reduction target for FY2030

4,963［t-CO2］［t-CO2］

1,000［t-CO2］

3,228

Switching to
renewable energy［t-CO2］

FY2020 CO2
2020年度emissions

CO2排出量FY2030 BAU* CO2
2030年度BAU※3
3

emissions

CO2排出量FY2030 CO2
2030年度SBT
emissions basedon CO2排出量
the SBT criteria

2,438［t-CO2］

2030 reduction
targetIWATSU Group's Scope 3 emissions reduction target
156,950［t-CO2］

114,678

Reduction target for FY2030

70,942［t-CO2］［t-CO2］86,00970,942［t-CO2］［t-CO2］

FY2020 Total
CO2 emissions

FY2030 BAU*3 CO2emissions

FY2030 CO2emissions basedon the SBT criteria© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

■ GHG reduction targets based on SBT criteria
At the IWATSU Group, we have set specific GHG
emissions reduction targets based on the TCFD
recommendations in line with the SBT certification policy
which that requires targets conform to the levels requiredby the Paris Agreement.
Having set FY2020 as the baseline year, we set GHG
emissions reduction targets toward the target year of
FY2030, based on the 1.5 °C-target level for Scope 1 and2 emissions and the WR2.0 °C-target level for Scope 3
emissions.
We formally applied for SBT certification in December
2022. Currently, SBTi is confirming the details of ourapplication.

2030 reduction
target18

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Development of Attractive New Products and Services throughTechnological Innovation
ColumnApproach to plant DX — Shift to wireless operations and human-robot collaboration —At the IWATSU Group, we are pushing forward withplant DX solutions aimed at shifting to the wirelessoperation of infrastructure and human-robot collaboration
using our proprietary communication technologies to solve
issues faced by plants, including the reduction of theworking population which is attributed to a declining
birthrate and the aging of the population, in addition to theneed to reduce labor.

Social issues

Approach to solving issues• Digital transformation (DX)• Smaller working-age population• Improvement of the efficiency of industries/plants• Climate change problem• Shift to the wireless operation of infrastructure• Expansion of mobile communication• Shift to wireless operations in areas using nextgeneration wireless technologies

Communication
technology■ Plant DX solutions

Real-time control of multiple AGVs*1• Controlling multiple AGVs stably without delay• Automated, autonomous supply of parts to high-mix, variablevolume production lines• Site checks and remote control using real-time imagery• Reduction of staff deployments using remote teaching

Parts and inventory data

Real-time imagery

Route setting and automated,autonomous transportation

Transitioning to a wireless in-plant network• Reduction of the cost of building networks• Enabling production line layouts to be changed flexibly
By wireWireless

Inflexible layout

Flexibly changing layouts enable high-mix,
variable-volume production

Nextgeneration
wireless
On siteRemote operation

Staff• Reduction of labor through automation• Reduction of simple mistakes and quality improvement• Preparation for the aging population and the declining birthrate

AGV

Value offered• Improvement of the efficiency of supplying parts and materials tothe production line
• Shift to the on-demand automated supply of parts and materials in
the plant• Increase in precision of site monitoring and flexible responses• Conformance to infrastructure standards with increased speed• Advanced coordination with ERP/MES*2 (stable implementation of
production action plans)• Increased quality and precision of process control with high-speed
data processing© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Remote operation and control of robots*1 Automatic Guided Vehicle*2 Manufacturing Execution System

19

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Development of Attractive New Products and Services throughTechnological Innovation
ColumnDevelopment of environmentally-friendly products — Applied products featuring the integration of chemical technologies and electronic communication technologies —Social issues

Approach to solving issues• Digital transformation (DX)

Chemical andcommunication
technologies• Expansion of communication
infrastructure• Reduction of environmental load

• Electric printing (no etching)• Radio reflector• Highly conductive film
• Transparent electrode■ Solving issues by combining chemical technologies and electronic communication technologies
Electric printing technologies

Functional materials technologies

Applied products

Functional materials using
PEDOT:PSS, a conductive polymer
Metal mesh
Developing an electric printing circuit
pattern with liquid tonerNon-electrolytic
copper plating

Heat generation due
to voltage

Antistatic coating

Transparent
electrode

TCｰ07, aconductive coating

TC-F, a conductive
film
Forming an electric circuit on a film
(A circuit with a curved surface and thin lines
can be formed)

High conductivity• Radio reflector• 3D surface circuit• FPC• Thin coil
• Touch panel• Transparent heater• Antistatic tray

• LED transparent
electrode• Electrode for LCDs

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

At the IWATSU Group, we are proceeding with R&D andthe productization of electric printing featuring a small
amount of waste and environmental considerations.
Electric printing is a technology with excellent
environmental features, including the consumption of asmaller amount of copper than the formation of electric
circuits using etching and the non-use of harmful
substances.
In addition, a conductive transparent coating developedby the IWATSU Group itself is used for a range of
purposes taking advantage of its features as a functional
material.

20

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Development of Attractive New Products andServices through Technological Innovation
ColumnImproving indoor and outdoor wireless communication environments with environmentally friendly products — Development of a transparent radio reflector —Social issues

Approach to solving issues• Digital transformation (DX)• Electric printing (no etching)

Chemical andcommunication technologies• Expansion of communication
infrastructure• Next-generation communication (Local
5G), Wi-Fi, etc.

• Improvement of teleworking environments• Transparent radio reflector• Reduction of environmental load

■ Role of the radio reflector
Without a reflector
Wireless base station

Features

With a reflector
Wireless base station

Bad
Communication
environment

Good
Communication
environment• Fine patterns and excellent designs with the creation of 3D surface patterns also
possible• Metasurface (negative refractive index) as a remedy for places where
communications are not stable• The variable size of the radio reflector flexibly enables remedies to places where
communications are not stable.
• Use of electric printing and positively charged liquid toner technology, which areenvironmentally friendly manufacturing processes• Easy installation with no need for power supply or communication wiring

Radio reflector

Incident
radio wave
Reflected
by the wall

Reflected radio wave
(Attenuated by theshielding object)

Incident
radio wave

Preventing theworsening ofcommunication
environments
by thoroughlyreflecting radio
waves

Reflected radio wave

Reflected by the radio reflector

Blind area 1© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Local 5G and Wi-Fi 6E, etc., which are believed to bepromising next-generation wireless technologies, use thesub-6 frequency band and frequency bands close to it.
Because of their high frequency, however, there areconcerns about the worsening of the communication
environment, which may be caused by shielding objects,
etc. At the IWATSU Group, we have developed anenvironmentally friendly radio reflector as a solution to thisissue. We will contribute to the creation of business
infrastructure environments that are compatible with nextgeneration wireless communications.

Blind area 2

Bands close to sub-6 (base station)

21

Contents

ColumnSustainability Management

Environment

Society

GovernanceAppendix

Products and Services to Solve Social Issues

Cloud communications with Blue Commpaas■ The shift of business communications tocloud computing driven by Blue Commpaas
Reflecting the recent volatility of consumer demand,companies must respond promptly to changes andimplement automation and efficiency improvements using
AI. Further, in light of every service being able to beconnected to the internet, IWATSU Electric has released
Blue Commpaas, a service that uses an API. This service
features diverse channel functions, from telephone linefunctions to chat and SMS, and we provide a voice chatbot
app, a package of these functions, on the cloud.
At IWATSU Electric, we will offer diverse services forsupporting DX, including services for small-scale contact
centers and AI-related functions.

Contact from
customers

Contact center and operators working from home
Building contact center
infrastructure

Productivity
improvements

Increasing operation efficiency

Integration of contact points

Customer service

Support for operation

Automatic call distribution (ACD)

Phone

Support for report creation

Interactive voice response (IVR)

Smartp
hones
WEB

Chat

Email

SNS

Waiting call indication
Softphone

Waiting time announcement

FS divisionDashboard

Call forwarding during nonbusiness hours

Seat layout
Screen pop-ups

Real-time statistics

Use of analytical
data

Call monitoring

CRM

Skill-based routing

Customers

Schedule creation (WFM)

StoresHistorical statistics
Audio recording

Presence

Database routing
Voice recognition
Voice synthesis
SMS transmission

Analysis
Data mining
Transcription of voice into text

Additional/supplementaryfunctionsEmbeddingBusiness applications

Telephone line

SMS

Chat

Two-factor
authentication

Video

SNS

Sales
Department

Text mining

Screen sharing

OutboundDiversification ofmeans ofcommunication

Sharing VOC

Sharing
informationentered via thewebsiteOperational process

Corporate
division© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

At IWATSU Electric, we help solve customer issues by
providing audio communication technologies which wehave developed through many years of operation as acommunication equipment manufacturer, and a large
number of original applications that we have developed
based on customer needs.
Going forward, positioning high-level technologicalcapabilities and expertise as our competitive advantages,
and creating cloud services and contact center systems
that integrate expansive advanced systems in Japan andother countries, we will continue to increase the value we
provide to customers.

https://www.iwatsu.co.jp/cloud/bluecommpaas/

22

Contents

ColumnSustainability Management

Environment

Society

GovernanceAppendix

Products and Services to Solve Social Issues

Keiki Yomuzo, automatic meter reading software

System configuration
Automatic conversion
into numerical values

Analog meter

Key functions
Converting imagery to numerical values

Reading multiple meters

Saving data and images

102.9

CSV

Converting an image taken by a camera tonumerical data

Reading multiple meters at the same time

Saving data (CSV) and images at the same time

Timer function

E-mail alert

Automatic position correction

Measurement are conducted at specified intervals
or designated times.

The software sends an e-mail alert if the set
threshold value has been exceeded.

When the camera has been moved, the software
automatically locates the meter to read it.

New features
Sorting read images into folders
NormalOver

Link to PLC*

Contact output function
Over

Error

Error
The software automatically sorts images into threefolders according to the read result.
(normal/abnormal/read error)

Read results are sent to up to four PLCs.

The software sends contact output signals
corresponding to the read results.
(Linking to external equipment is possible.)*Programmable Logic Controller (a device used to control instruments, equipment, etc.)

7-segment meter© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

To support the digital transformation of plants in Japan's
manufacturing industry, IWATSU Electric provides Keiki
Yomuzo which monitors a variety of meters in plants using
external cameras and automatically converts the images ofthe meters into numerical values.
The introduction of Keiki Yomuzo enables companies toautomate the task of checking meter numbers, which had
been done manually and visually on a regular basis, thus
making it an automated task. Users can expect the system
to have various effects, including the increase of work
efficiency, the reduction of labor costs and the preventionof human error. Further, setting threshold values enables
the early detection and handling of equipment
abnormalities. Therefore, the software is effective from theviewpoints of the prevention of loss due to the suspensionof business and business continuity.
At IWATSU Electric, we provide Keiki Yomuzo to a wide
range of customers to help solve many issues, such as thedecline in the working population and soaring energy
prices.

https://www.iwatsu.co.jp/iot/meterreading/23

Contents

2

Provide eco-friendly
products and services

Reduction of theenvironmental impact of
the activities of businesssites

Environment

Society

GovernanceAppendix

E n viro n men t Development of Attractive New Products and Services throughTechnological Innovation

 Reducing GHG emissions related to purchased products and services

 Contributing to a carbon-neutral society through test andmeasurement technologies

 Improving the energy efficiency of our products
 Design of products to minimize the impact on the ecosystem Reducing GHG emissions by improving business process

efficiency

 Expansion of introduction of renewable energy Preventing environmental pollution and conserving

biodiversity

 Resource Recycling© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Promotion of procurement
activities that takesustainability into
consideration

Sustainability Management24

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Environmental Management
EMS Promotion System

The IWATSU Group considers the resolution of climatechange and other environmental issues to be an importantfactor in achieving a sustainable society, and we areworking to reduce the impact of our business activities on
the environment under the following environmental policy.

In the IWATSU Group, we have created an
Environmental Management System (EMS) based on ISO
14001, and we are now operating and managing thissystem as part of our efforts to improve environmental
performance.
Under the direction of the manager responsible for the
EMS, the Group Secretariat coordinates with eachdepartment and internal auditors to monitor environmental
performance, the status of compliance with laws andregulations, the effectiveness of our activities, etc., throughinternal audits and management reviews.

Environmental Policy
The IWATSU Group will contribute to achieving a sustainable
society by working to conserve natural capital through ourbusiness activities.
1. As specific initiatives against climate change, we will work to
reduce Scope 1, 2, and 3 emissions of greenhouse gases.
(Achievement of SBT-Certified Reduction Targets)
2. We will provide environmentally-friendly products andservices, and endeavor to reduce environmental impact overthe lifecycle of products and services.
3. We will strive to prevent environmental pollution, conserve
biodiversity, efficiently use resources, and promote theircirculation, thus endeavoring to reduce the environmental
impact of the activities of our business sites.
4. We will comply with legal and other requirements.
- Laws and regulations related to the environment- Environmental ordinances of regional local governments- Other requirements that the IWATSU Group consents to
5. We will continuously improve our environmental management
systems, and endeavor to enhance environmental
performance.

Environmental management system promotion organization chart
Management: President and Director of IWATSU Electric Co., Ltd.
Head of EMS Management

IWATSU Group Internal Auditor
Iwatsu Group Secretariat

Applicable organizations (Japan: 7 companies, 14 sites)

Status of acquisition of ISO 14001 certification
Company name

Status ofacquisition

Certification body / number

Certification application site

IWATSU Electric Co., Ltd.

○

Kugayama, Sales Site

Iwatsu Manufacturing Co., Ltd.

○Aizu, Sukagawa, Izumizaki, Kugayama

IWATSU Chemical Cross Co., Ltd.

○

Kugayama, Tochigi, Nishinihon

IWATSU NETWORK SOLUTION CO., LTD.

○IWATSU Business Services Co., Ltd.

○

Kugayama

IWATSU SYSTEM & SOFTWARE CO., LTD.

○

Kugayama

Tohtsu Industry Co., Ltd.

○

HachiojiDentsu Service Co., Ltd.

×

―

―

groxi Inc.

×

―

―

Iwatsu （Malaysia） Sdn Bhd●

Intertek／E126588-2―

JIC Quality Assurance Ltd. / E1871

Kugayama, Hokkaido, Higashinihon, Chiba© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Basic Approach○: Acquired by the head office of IWATSU Electric Co., Ltd. as a group certification. IWATSU Chemical Cross was added to the scope of the certification in FY2023.
*The above Environmental Policy applies to the ISO 14001-certified organizations in Japan.

●: Acquisition on an individual certification basis Iwatsu (Malaysia) Sdn Bhd operates an EMS promotion system that it has developed separately to the Company’s domestic operations*As a result of stock transfers, groxi Inc. and Iwatsu (Malaysia) Sdn Bhd were excluded from the consolidated subsidiaries of IWATSU Electric Co., Ltd. in June 2023 and September 2023, respectively.

25

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Environmental Management
Environmental Performance

Environmental Efficiency Index

29.42

2018

26.37

2019

FY20182020
Fiscal year

22.75

2021

22.64

2022

FY2020

FY2021

FY2022

Notes

Capital [million yen]

6,025

6,025

6,025

6,025

6,025

IWATSU Electric Co., Ltd.

Consolidated revenue [100 millionyen]

208.47222.94217.06231.82229.03―［GJ］

114,055

111,294

107,683

105,599

100,458

Used the calorific value conversion coefficient in the Act
on Rationalizing Energy Use and Transition to Non-fossil
Energy, etc.

［MWh］

31,68530,91829,91429,33527,907

Converted at 1 [GJ] = 0.2778 [MWh]Sale of electricity generated fromsolar power [MWh]

2,566

2,452

2,376

2,436

2,276

Electric power generated at Iwatsu Izumizaki Mega Solar
Power Plant

Use of chemical substances [tons]

317

326

232

277

201

Water resource intake [m3]35,38934,451

30,48735,071

34,082

Sale of key products [tons]

1,319

1,392

1,055

1,168

938

―

Scope 1 and 2 emissions [tons of
CO2]

6,134

5,878

5,565

5,273

5,184

―

Scope 3 emissions [tons of CO2]――

114,678

104,283

90,984FY2018 and FY2019 were excluded from the calculation.

33,85732,98029,111

33,82332,706

Head office and plant sites in Japan and overseas

Emissions (tons)

13.4

7.0

7.5

7.2

4.5

Amount moved[tons]

6.7

7.8

4.7

5.5

5.2

VOC emissions (tons)

7.9

6.0

4.8

6.3

4.9

Plant sites in Japan

Total waste output (tons)

610

609

551

567

535

IWATSU head office and plant sites in Japan

Recycling rate [%]

98.5

98.0

97.5

97.3

92.6

IWATSU head office and plant sites in Japan

Environmental efficiency indicator

29.42

26.37

25.64

22.75

22.64

CO2 emissions [t-CO2] / revenue [100 million yen]

Total energy input

Total wastewater [m3]25.64

FY2019Substances
subject to PRTR

Plant sites in Japan and overseas
IWATSU head office and plant sites in Japan and oversea

Amount reported at plant sites in Japan© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Through such measures as increasing the efficiency of
production processes, energy-conservation activities, andresource-conservation activities, the IWATSU Group works
to reduce the impact of our production activities on theenvironment, while also engaging in activities to monitor
and improve various types of environmental performance.
The key trend in the environmental performance of the
IWATSU Group between fiscal 2018 and fiscal 2022 isshown in the chart on the right.
In fiscal 2022, values related to environmental impact
excluding recycling rate, such as total energy input, Scope
1, 2 and 3 emissions, total water resource intake, and total
waste output, declined from the previous fiscal year.
Our environmental efficiency index (Scope 1 and 2
emissions per 100 million yen in revenue) for fiscal 2022
was 22.64, an improvement of 0.48% compared with theprevious fiscal year, when it was 22.75.

*The FY2021 value for the use of chemical substances was corrected because of a calculation error.

26

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Environmental Management
Environmental impact material balance in the IWATSU GroupINPUTOUTPUT
Greenhouse gases

EnergyScope1 emissions: 1,179 [t-CO2]

Power: 82,156 [GJ]

Scope2 emissions: 4,005 [t-CO2]

Photovoltaics: 489 [GJ]
Gas: 6,460 [GJ]

Waste
Total emissions: 535 [t]Amount recycled: 495 [t]Final disposal amount: 40 [t]Chemicals(materials, organic solvents,
paint, etc.)
201 [t]Recycling rate: 92.6［%］

VOCs, substances subject to
PRTR
VOC : 4.9 [t]Water(potable water, ground water)
34,082［m3］substances subject to PRTR: 9.7 [t]* Used the calorific value conversion coefficient in the Act on
Rationalizing Energy Use and Transition to Non-fossil Energy,
etc., for purchased electric power and fuel* Converted at 1 [kWh] = 0.0036 [GJ] for solar power used inhouse* Gas: City gas and LPG* Fuel: Fuel oil, diesel oil, kerosene, gasoline, and other liquid
fuel* Chemical substances: Use at plant sites in Japan andoverseas* Water (potable water and ground water): IWATSU head officeand plant sites in Japan and overseas* Scope 2 emissions: Calculated using market standards* Waste: IWATSU head office and plant sites in Japan

Drainage* VOC: Output at plant sites in Japan

32,706［m3］* Substances subject to PRTR: Total amount reported at plantsites in Japan© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Fuel: 11,353 [GJ]

* Wastewater: IWATSU head office and plant sites in Japan andoverseas (replaced with water use in cases where the amountof wastewater is unclear)

27

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Environmental Management
Overview of Activities (Organizations with EMS Certification in Japan)■ Internal audits
The IWATSU Group conducts internal audits overseenby the head office of IWATSU Electric once a year, inwhich we confirm the conformity and effectiveness of our
EMS.
[Implementation time] October to December 2022
[Subject] 14 sites across seven companies(IWATSU Group, in Japan)[Results] No major non-conforming items■ External communication
We disclose information related to the environment inthis sustainability report. We also endeavor toappropriately respond to inquiries, requests, etc., fromstakeholders through internal communication with relevant
departments.

[Implementation time] April 2022 (summary for the previous fiscal
year)
January 2023 (internal audit report)■ Response to environmental laws and regulations
We perform regular checks for amendments toenvironmental laws and regulations, etc., and endeavor to
respond appropriately to obligations related to filings,
reports, etc., as well as licensing, permission, and approvalrequirements, etc.
The status of our compliance with environmental laws
and regulations is checked regularly on a site-by-site basis,and the details of our compliance are checked throughinternal EMS audits.
It was discovered that waste was inappropriately
managed by the sales department, so we took corrective
actions with a focus on improving awareness.

■ Environmental education
In order to effectively operate our EMS, we plan andexecute environmental education and awareness-raising
activities.
Status of implementation in fiscal 2022
Name of education or awareness-raising activity[Implementation time] May 2022 (regular inspection)[Certification body] JIC Quality Assurance Ltd.
[Results] Non-conforming items: 1;
opportunities for improvement: 20

Number ofparticipants(people)Education for new employees

18

Education for new employees (overview of EMS and
SDGs)

123

Advance education for internal audits65

New internal auditor development education35© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

■ External inspections
Once a year, the IWATSU Group receives an external
inspection of the conformity and effectiveness of our EMS
from a certification body. We correct or rectify any nonconforming items within a predetermined period. Eachdepartment considers ways to respond to opportunities for
improvement, and they are confirmed in internal audits.

■ Management review
Twice a year, the IWATSU Group Secretariat leads
management reviews within the Group. Environmental
performance, the status of compliance with environmental
laws and regulations, points for improvement, and otherrelated matters are reported to senior management.

28

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Environmental Management
Management of chemical substances in products and environmentally-friendly products*A system that was developed under the leadership of the Ministry of Economy, Trade andIndustry (METI) for communicating information related to chemical substances in products in the
supply chain. This system succeeds and integrates the former JAMP AIS and JGPSSI systems.

■ Environmental assessments
In order to reduce the impact of products designed,
manufactured, and sold by the IWATSU Group on the
global environment, we perform environmental
assessments that take into consideration the productlifecycle of new products.
We also significantly revised the environmental
assessment requirements related to our products, aiming
to achieve our Scope 3 emissions reduction target which isconsistent with the SBT certification criteria, as well as ourresource recycling initiatives.
We will apply these requirements when designing anddeveloping products in the future to improve theirenvironmental performance.
Environmental assessment items
 Recyclable rate
 Ease of separation
 Standardization rate
 Rate of miniaturization andvolume reduction
 Energy reduction rate Classification and material
labeling
 Environmental safety Degradability assessment

 Consideration of disposal safety
 Recycling labeling Ease of removal
 Rate of reduction of plastic
materials
 Consideration for biodiversity
 Consideration of depletable andrare resources Consideration of reuse
 LCA

DS-8000 Series Digital
Oscilloscope■ IWATSU Eco Label
We have created the Eco Label as a form of declaration
based on our own standards for products designed,
manufactured and sold by the IWATSU Group. Productsthat satisfy the standards are granted the Eco Label.
In line with the revisions to the environmental
assessment, we also revised the standards for the grantingof the Eco Label. We will contribute to customers'
environmental activities by providing products with greater
energy efficiency and recyclability.
© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

■ Management of chemical substances in products
The IWATSU Group works to reduce harmful chemical
substances in our products, through compliance with laws
and regulations in Japan, as well as laws and regulations
overseas, such as the RoHS Directive and REACH
regulation in Europe. Specifically, we clarify substances
subject to laws and regulations and voluntary controls,
which are covered by internal regulations, and thoroughlymanage them.
IWATSU Electric participates in the Joint Article
Management Promotion-consortium (JAMP), and conducts
surveys of chemicals in products in the supply chain using“chemSHERPA*,” a survey tool provided by JAMP. We
also survey the status of inclusion of five substances
controlled under the US TSCA PBT regulations in our
products, as part of our endeavor to reduce environmental
impact associated with chemical substances.

29

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Response to Climate Change Problems
Actions to address climate change initiatives

We are seeing an increase in the severity of natural
disasters caused by climate change associated with global
warming, such as larger typhoons, frequent torrential rains
and flooding, heat waves and droughts.
At the IWATSU Group, we have identified three key
sustainability issues related to the environment,
recognizing that actions to address the climate change
problem are important tasks for the establishment of asustainable society. We have also determined six themes
for our activities related to these areas of key sustainability
issues.
To achieve our goals in the activity themes, we will
promote initiatives to reduce the GHG*1 emissions of ourvalue chain, including energy-saving activities at businesssites, consideration of the introduction of renewableenergy, the reduction of the energy our products consume
and collaborations with business partners, thus contributing
to the achievement of carbon neutrality by 2050, a goal set
by the Japanese government.
We will also pay close attention to the newest
information, policies and industry trends related to theclimate change problem, ensure that the IWATSU Group's
strategies reflects them, and use them to increaseawareness internally, thus increasing the feasibility of ourmeasures.

At the IWATSU Group, we are pushing forward withmeasures to reduce GHG emissions in support ofinternational initiatives related to climate change, in ourefforts to address the climate change problem.
■ Information Disclosure Based on TCFD Proposal
The IWATSU Group expressed our support for the
TCFD recommendations in August 2022 and disclosed
information based on the TCFD recommendations in
February 2023.
We have identified stronger regulations related to GHG
emissions, changes in energy supply and demand,and development and spread of next-generation
technologies as transition risks in the 1.5 °C scenario,
and environmental change as a result of global warming
and increasing severity of natural disasters as physicalrisks in the 4 °C scenario.
We have identified stronger regulations related to GHG
emissions, changes in demand for low-carbon products,
and development and spread of next-generation
technologies as climate change opportunities and aretaking actions accordingly.

➡ See page 16 for more information about our disclosures based on
the TCFD recommendations.

■ GHG reduction targets in line with SBT certification
At the IWATSU Group, we submitted a commitment
letter to the SBTi in December 2021, stating that we aimed
to acquire certification within two years.
We also set reduction targets, with 2020 as the baseline
year, and submitted a formal application for SBT
certification in December 2022. These targets conform to
the levels required by the Paris Agreement (limiting the
global temperature rise to 1.5 °C over the pre-industrial
level).
➡ See page 18 for details of the reduction targets based on the SBT
certification criteria.

■ Response to the CDP*2 climate change questionnaire
At the IWATSU Group, we respond to the CDP's climatechange questionnaire as a means of disclosing information
to institutional investors.
We received a score of C (awareness) for our responseto the the CDP Climate Change 2022 Questionnaire, which
was conducted in 2022.
We will respond to the TCFD recommendations,continue to implement initiatives aimed at achieving the
reduction targets conforming to the SBT certification
criteria, and improve our information disclosure.

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Basic Approach*1. Greenhouse gas*2. An international environmental NGO established in the UK in 2000. It sends a questionnaire related to climate change, water security and forests to companies around the world and discloses theinformation obtained through the questionnaire to institutional investors, etc.

30

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Response to Climate Change Problems
Changes in CO2 emissions■ Scope 1, 2 emissions (direct and indirect emissions)Trends in the Scope 1 and 2 emissions of the IWATSU
Group between fiscal 2018 and 2021 are as follows.
Note, when calculating emissions for Malaysia using thelocation standard, emissions factors have been replacedwith those for Japan.

■ Scope 3 emissions (Other indirect emissions aside
from those covered by Scopes 1 and 2)
The changes in the IWATSU Group's Scope 3 emissions
from fiscal 2020 to fiscal 2022 are as follows.
The majority of Scope 3 emissions are Category 1(purchased goods and services) and Category 11 (use ofsold products) emissions.

■ Changes in Scope 1, 2, and 3 emissions overall
The IWATSU Group's Scope 1, 2, and 3 emissions fromfiscal 2020 to fiscal 2022 and the the percentage ofemissions that are Scope 3 emissions are as follows.
Scope 3 emissions are approx. 95% of the IWATSU
Group's CO2 emissions.

Changes in Scope 1 and 2 emissions (Market standard)[t-CO2]

Scope 1 emissions

Changes in Scope 3 emissions

Scope 2 emissions[t-CO2]

11,523
4,667

4,394

4,254

4,022

4,005

1,467

1,484

1,311

1,251

1,179

2018

2019

2020
Fiscal year

2021

2022

[t-CO2]

Classification
Scope 1 emissions
Marketstandard
Scope 2emissions Location
standard

FY2018 FY2019 FY2020 FY2021 FY2022
1,467

1,484

1,311

1,251

1,179

4,667

4,394

4,254

4,022

4,005

4,587

4,304

4,090

3,895

3,634

37,81965,3362020

Cat.11

104,283
9,804
36,475

Other categories

120,243

90,9848,531
28,32658,004

54,127

2021

2022

Fiscal year

Changes in Scope 1, 2, and 3 emissions[t-CO2]

95.4%
114,678

Scope1, 2
Scope 1, 2

109,556
95.2%
104,283

Scope396,168
94.6%
90,984

5,565

5,273

5,184

2020

2021

2022

Fiscal year

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

114,678Cat.1

31

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Response to Climate Change Problems
Breakdown and sources of GHGs
■ Actual Scope 1, 2, and 3 emissions
Category
Total CO2 emissions (Scope1, 2, 3)[t-CO2]

FY2020

FY2021

FY2022120,243

109,555

96,168

Direct emissions

1,311

1,251

1,179

Scope2

Indirect emissions

4,254

4,022

4,005

Scope3

Other emissions

114,678

104,283

90,984

Cat.1

Purchased products andservices

65,33658,004

54,127

Cat.2

Capital goods

3,218

1,175

441

Cat.3

Energy which is notincluded in Scope 1 or 2

839

814

779

Cat.4

Transportation (upstream)

5,429

5,311

4,685

Cat.5

Waste

376

458

546

Cat.6

Business travel

189

242

319

Cat.7

Employee commuting

1,076

1,313

1,246

Cat.8

Leasing (upstream)

ー

ー

ー

Cat.9

Transportation(downstream)

121

154

110

Cat.10

Processing of products

ー

ー

ー

Cat.11

Use of products

37,81936,47528,326

Cat.12End-of-life treatment of
products

14

15

14

Cat.13

Leasing (downstream)

262

321

491

Cat.14

Franchises

ー

ー

ー

Cat.15Investments

ー

ー

ー

■ Sources of CO2 in Scope 1 and 2 emissions
Sources of CO2 emissions by the IWATSU Group
include electric power, gas, fuel (fuel oil, diesel oil,kerosene, and gasoline), and other types of fuel. Other
liquid fuel includes organic solvents abated by combustion
with VOC abatement systems.*

Breakdown of Scope 1, 2 and 3 emissions (FY2022)

Breakdown of sources of Scope 1 and 2 emissions (FY2022)

Scope1

1.2%

Scope2

4.2%

Other liquid fuels

4.0%

Kerosene
LPG

0.6%

Light oil

0.2%

Gasoline

6.8%

3.1%
Category 11
29.5%

Heavy oil

4.5%

City gas

3.6%

Category 1
56.3%

Category 4

4.9%

Category 3

0.8%

Scope3

94.6%
Category 2

0.5%

Power

77.3%

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Scope1■ Breakdown of CO2 emissions in FY2022
The majority of the IWATSU Group's CO2 emissions infiscal 2022 were Scope 3, Category 1 emissions(purchased goods and services), Category 11 (use of soldproducts) emissions and the CO2 emitted from businesssites was approx. 5% of total emissions.

*Heat storage-type deodorizing systems

32

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Response to Climate Change Problems
Initiatives to reduce CO2 emissions■ Initiatives to reduce Scope 1 and 2 emissions
At the IWATSU Group, we implement initiatives toreduce CO2 emissions, such as the reduction of power
consumption during peak hours, the use of air conditioners
at appropriate temperature settings, the programming oflights to automatically turn off lights in areas without people
in them, and efforts to turn off electrical equipment that is
not being used. In fiscal 2022, we reduced our CO2
emissions 89 tons (1.68%) from the previous fiscal year.

[tons of CO2]

6,134
838

2,941

691

2,705

5,565
715

2,435

5,273
757

IWATSU Electric Co., Ltd.

5,184
726
581

2,376

1,830

■ IWATSU Electric

2,287

2,232

1,957

1,865

2019

2020
Fiscal year

2021

Iwatsu Manufacturing Co., Ltd.

■ Iwatsu Manufacturing■ IWATSU Chemical
Cross Tochigi■ Tohtsu Industry■ Dentsu Service■ Iwatsu（Malaysia）

2018

Company name

Site

2022

*Emissions from the Kugayama site include emissions associated with company cars belonging
to the sales office of IWATSU Electric Co., Ltd., as well as the emissions of IWATSU Business
Services Co., Ltd., IWATSU System & Software Co., Ltd., the head office of IWATSU Network
Solution Co., Ltd. (since fiscal 2021) and the head office of IWATSU Chemical Cross Co., Ltd.
(since fiscal 2022).
*Emissions from sales sites include emissions from the branches and sales offices of IWATSU
Network Solution Co., Ltd. and IWATSU Chemical Cross Co., Ltd.
*The Tochigi Business Site of Iwatsu Manufacturing Co., Ltd. was changed to the Tochigi
Business Site of IWATSU Chemical Cross Co., Ltd. in October 2022.

FY2018FY2019FY2020

FY2021

FY2022

Kugayama

2,074

2,212

2,157

1,883

1,797

Sales sites

81

75

76

74

68

Subtotal

2,154

2,287

2,232

1,957

1,865

70

69

73

68

69

Sukagawa

1,068

1,001

860

834

901

Izumizaki

1,014

947

952

879

859

Tochigi

789

688

550

594

ー

Subtotal

2,941

2,705

2,435

2,376

1,830

Aizu

■ groxi

2,154[tons of CO2]

1.68% reduction
5,878

Our environmental efficiency indicator for fiscal 2022
was 22.64, an improvement of 0.48％ from fiscal 2021.

IWATSU Chemical Cross Co., Ltd.

Tochigi

ー

ー

ー

ー

581

Tohtsu Industry Co., Ltd.

Hachioji

48

45

45

47

47

groxi Inc.

68

70

61

61

65

Dentsu Service Co., Ltd.

84

80

77

75

72

Iwatsu（Malaysia）Sdn Bhd

838

691

715

757

726

IWATSU Group total

6,134

5,878

5,565

5,273

5,184

Environmental efficiency indicator: CO2 emissions [tCO2] / revenue [100 million yen]

29.42

26.37

25.64

22.75

22.64

*As a result of stock transfers, groxi Inc. and Iwatsu (Malaysia) Sdn Bhd were excluded from the consolidated subsidiaries of IWATSU Electric Co., Ltd. in June 2023 and September 2023, respectively.

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Changes in the CO2 emissions of IWATSU Group companies

In addition, we monitor our CO2 emissions per 100
million yen of revenue as our environmental efficiency
indicator to pursue efficiency in both environmental andeconomic terms.

33

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Response to Climate Change Problems
Initiatives to reduce CO2 emissions

Power generated

Reduction in CO2emissions [tons of CO2]

Kugayama site

24

10.4

Sukagawa site

112

49.4

Total

136

59.8

Site

[MWh]

■ Reduction of Scope 3 emissions
The majority of the IWATSU Group's Scope 3 emissions
are Category 1 (purchased goods and services) andCategory 11 (use of sold products) emissions.
To reduce Category 1 emissions, it is necessary to
collaborate with suppliers. Therefore, the IWATSU Groupestablished its Sustainability Procurement Guidelines inJanuary 2023 and it requests that its suppliers identify,
reduce and disclose their Scope 1, 2, and 3 emissions.
Further, regarding Category 11 emissions, we revised
product assessment criteria and environmental labels
related to our products and set energy efficiency standards
in consideration of the IWATSU Group's Scope 3
emissions reduction target (a 25% reduction from thebaseline year).
Moving forward, we will promote the reduction of Scope
3 emissions by prioritizing procurement from suppliers thatmeet the Sustainability Procurement Guidelines and byproviding products and services which satisfy our energy
efficiency standards.

IWATSU Group Sustainability Procurement Guidelines
https://www.iwatsu.co.jp/companydata/other/sustainability_procurement.pdf■ Iwatsu Izumizaki Mega Solar Power Plant
At the IWATSU Group, we operate the Iwatsu Izumizaki
Mega Solar Power Plant. The installation's area is approx.
34,500 m2 and its power generation capacity is approx. 2
MW. It was established on the Izumizaki site as a measure
to reduce CO2 emissions other than Scope 1, 2, and 3
emissions. We supply the power generated by these solar
panels, which are a renewable source of energy.
This power plant began operating in October 2013, andwe contribute to reducing CO2 emissions from the local
community by selling the generated power to electric
power companies using the feed-in tariff scheme forrenewable energy.
In fiscal 2022, the plant generated 2,276 MWh,equivalent to a 1,004-ton reduction of CO2 emissions.*

Izumizaki Mega Solar Power Plant© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

■ Introduce renewable energy
Solar panels with outputs of 20 kW and 100 kW are
installed on roofs of the head office of IWATSU ElectricCo., Ltd. (Kugayama site) and the Sukagawa Business Siteof Iwatsu Manufacturing Co., Ltd. (Sukagawa site),
respectively.
The electricity generated by these solar panels, a
renewable energy source, is used at the sites.
In fiscal 2022, the total amount of electricity generated
by the solar panels at these two sites was 136 MWh,equivalent to a 60-ton reduction of CO2 emissions.**Calculated using the replacement values for emissions factors for each electricity company(actual data for fiscal 2021)

34

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Response to Climate Change Problems
Actual Energy Usage
The energy usage of the IWATSU Group between fiscal 2018 and 2022 is as follows.
In fiscal 2022, we reduced energy usage by 5,141 GJ (1,428 MWh) compared with the previous fiscal year.
［GJ］

By type of energy

FY2018Purchased electric power
In-house consumption of solar power

FY2019FY2020

FY2021

Breakdown of energy usage in fiscal 2022

FY2022

91,46987,93386,76585,654

82,156

501

486

489

492

489

91,97088,41987,254

86,14682,645City gas

4,925

5,920

6,122

3,937

3,739

LPG

2,998

3,111

2,366

2,801

2,721

Heavy oil

4,497

4,271

3,635

3,836

3,367

Kerosene

318

330

454

478

478

Light oil

209

165

153

161

127

Gasoline

5,805

6,405

5,523

5,372

5,263

Other liquid fuels

3,333

2,673

2,175

2,867

2,119

Subtotal (fuel)22,08622,875

20,42919,453

17,813［GJ］

114,055

111,294

107,683

105,599

100,458［MWh］

31,68530,91829,91429,33527,907

Total*Used the calorific value conversion coefficient in the Act on Rationalizing Energy Use andTransition to Non-fossil Energy, etc., for purchased electric power and fuel*Converted at 1 [kWh] = 0.0036 [GJ] for solar power used in-house

0.5%

Heavy oil
LPG

2.7%

3.4%

Light oil

0.1%

Gasoline

5.2%

Other liquid
fuels

2.1%

City gas

3.7%

Photovoltaics

0.5%

Power

81.8%

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Subtotal (electric power)

Kerosene*Converted at 1 [GJ] = 0.2778 [MWh]*Other liquid fuel refers to organic solvents combusted with VOC abatement systems (heatstorage-type deodorizing systems).

*Fiscal 2022: Energy consumption in Japan = 88,132 [GJ], energy consumption outside Japan =12,326 [GJ]35

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Response to Climate Change Problems
Energy used for heating, steam, and cooling
The IWATSU Group uses heating, steam, and cooling generated from fuel for the following applications.
■ Examples of applications• Heating: Heating spaces, kitchens, company cars, drying
furnaces• Steam: Drying furnaces, steam boilers, humidification• Cooling: Air-conditioning (hot and cold water generators)
Fuel used by the IWATSU Group for heating, steam, andcooling in fiscal 2022 was as follows.

Fuel

Calorific value[GJ]

Calorific value[MWh]Kerosene

478

133

Light oil

127

35

Gasoline

5,263

1,462

City gas

114

32

LPG

498

138

Total

6,480

1,800

Fuel
City gas

Energy used for heating, steam, and cooling
Calorific value[GJ]

Calorific value
[MWh]

859

239

LPG

2,222

617

Other liquid fuels

2,119

5894

Total

5,201

1,445

Cooling
Fuel

Calorific value
[GJ]

［GJ］

7,871

8,271
7,897

7,289

7,088

6,932

7,516

6,584

5,798

5,703

5,201

6,734

6,690

6,480

Calorific value[MWh]City gas

2,766

768

Heavy oil

3,422

951

Total

6,188

1,719

*Used the calorific value conversion coefficient in the Act on Rationalizing Energy Use andTransition to Non-fossil Energy, etc.
*Converted at 1 [GJ] = 0.2778 [MWh]*Other liquid fuel refers to organic solvents combusted with VOC abatement systems (heatstorage-type deodorizing systems).

6,132■ Heat■ Steam■ Cooling

2018

2019

2020
Fiscal year

2021

2022

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Heat generation

Steam generation

36

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Chemical Substance Management■ Notification of Substances Subject to PRTR
As part of our response to the Act on the Assessment
Releases of Specified Chemical Substances in theEnvironment and the Promotion of Management
Improvement, the IWATSU Group monitors and manages
the amounts of class I designated chemical substances
handled, output, moved, etc.
In fiscal 2022, the IWATSU Group used 17 substances
categorized as class I designated chemical substances
under this law.
We submitted notifications for the following class I
designated chemical substances: 1-bromopropane,
toluene, exylene, and ethylbenzene (Izumizaki site), andtoluene and exylene (Tochigi site).

Use of chemical substances

Notification amounts for substances subject to PRTR

[Tons][Tons]

317■ Emissions

277
232

6.7

201
7.8

4.7

5.5
5.2

13.4
7.0
2018

2019

2020

2021

2022

Fiscal year
*This data aggregates chemical substances used in manufacturing and repair processes. The
following four companies are covered.
- Iwatsu Manufacturing Co., Ltd. - IWATSU Chemical Cross Co., Ltd.
- Tohtsu Industry Co., Ltd. - Iwatsu (Malaysia) Sdn Bhd

2018

2019

7.5

7.2

2020

2021

Fiscal year

*Globally Harmonized System of Classification and Labelling of Chemicals (GHS) refers to theharmonizing of classification standards, labels, and Safety Data Sheets for each type ofchemical hazard, and the provision of this information as unified global rules

Information about printing-related devices
https://www.iwatsu.co.jp/icc/support/datasheet.html■ Amount moved

326■ SDS for supplies for printing systems devices
For supplies used in printing systems devices, the
IWATSU Group endeavors to provide safety information tocustomers through GHS labels, precautions at the time ofuse and disposal, etc., by publishing Safety Data Sheets(SDSs) on the IWATSU website.
We revised our SDSs to comply with the revised Act on
the Evaluation of Chemical Substances and Regulation of
Their Manufacture, etc., which came into force in April
2023.

4.5
2022

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

■ Management of Use of Chemical Substances
The IWATSU Group uses chemical substances such as
solder, organic solvents, and paint as auxiliary materials
for manufacturing business telephones, test andmeasurement equipment, and printing systems devices.
Supplies for printing systems devices supplied by theCompany are also chemical products, and approximately
90% of the chemical substances used by the IWATSU
Group are used when manufacturing these products.
The IWATSU Group uses chemical substancemanagement records to ascertain and manage theamounts of chemical substances used, etc.

*The FY2021 value for the use of chemical substances was corrected because of a calculation
error.

37

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Prevention of Environmental Pollution
VOC abatement system in the Tochigi site

［ppmC］

Emissionsconcentration

FY2018FY2019FY2020

FY2021

FY2022

350

370

430

350

500

*Emissions standard concentration: 600 [ppmC]

Amount of VOCs handled and emitted[Tons]

157

166

159
143

133

127

126

114

107
85

78

70

10

10

12

2010

2011

2012

7

7

7

2013

2014

2015

6
2016
Fiscal year

68

8

8

6

5

6

5

2017

2018

2019

2020

2021

2022

■ Initiatives to prevent soil pollution
The IWATSU Group does not have any specified
facilities under the Soil Contamination Countermeasures
Act. At our Izumizaki and Tochigi sites, however, we haveunderground tanks where we store fuel oil and organic
solvents.
At our Sukagawa, Izumizaki, and Tochigi sites, we also
have outside storage facilities for type IV hazardous
materials.
We designate any leaks of hazardous materials fromthese underground tanks and outside storage facilities as
emergencies and prepare for such emergencies by holding
emergency response drills at each site.
■ Initiatives to prevent water contamination
We have installed purification tanks at our Aizu,
Sukagawa, and Izumizaki sites, and we perform regularinspections of purification tanks, while also monitoringwater quality at final discharge points.
When inspecting water quality at final discharge points,
we check that hydrogen ion concentration and biologicaloxygen demand (BOD), etc., are below reference levels.

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

■ Initiatives to prevent air pollution
The IWATSU Group endeavors to control the emissionof volatile organic compounds (VOCs), which arecontributors to photochemical smog and suspended
particulate matter (SPM).
Among IWATSU Group facilities, coater dryers at our
Tochigi site are specified facilities subject to controls on
the emission of VOCs.
These coater dryers have heat storage-type deodorizing
systems installed, which use heat to decompose VOCs
emitted and detoxify them before emission.
IWATSU Group companies in Japan also participate in
the “Continuous Survey on the Status of VOC Emissions
by Four Electrical Machinery and Electronics
Organizations,” and endeavor to monitor and control
emissions of 20 applicable VOC substances.

■ Handling volume■ Emissions

38

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Water Resource Management■ Initiatives to conserve water resources
The IWATSU Group uses both potable water and groundwater in our business activities.
At each site, we take steps to reduce water resource
intake on an ongoing basis, through measures such as thecontrol of the water consumption of air-conditioning
systems using appropriate temperature settings and thewater conservation activities of individuals.

In fiscal 2022, the IWATSU Group took in 34,082 m3 ofwater resources, a decrease of 989 m3 from fiscal 2021.
Water consumption decreased at the Kugayama site, theSukagawa site, the Tochigi site and at Iwatsu (Malaysia),
but the number of buildings owned and leased by the
IWATSU Group increased by two, resulting in the decrease
above.

Changes in water resource intake

Changes in the amount of wastewater

［m3］

［m3］

1,383

12,951

9,257
1,363
11,194

5,800
1,356
11,122

11,275
1,498
11,077

8,435

9,264

4,545

10,524

11,791

12,637

12,56911,221

10,578

2018

2019

2020
Fiscal year

2021

2022

■ Kugayama site
■ Plant sites in Japan■ Buildings owned
and leased by theCompany■ Overseas sites*For sites where the amount of wastewater is unclear, we have used the amount of water intake
as the amount of wastewater.
*Buildings owned and leased by the IWATSU Group refer to rental properties owned by IWATSU
Electric.

9,257

5,800

11,275

8,435
4,545

1,383

1,363

1,356

1,498

12,890

11,132

11,055

11,027

10,320

11,2282018

2019*Aqueduct Water Risk Atlas
Aqueduct Water Risk Atlas An information tool provided free of charge by the World Resources
Institute (WRI) that maps global water risk. The current version is 3.0 (released in 2019)10,493

10,90010,023

9,233

2020

2021

2022

Fiscal year

■ Kugayama site
■ Plant sites in Japan■ Buildings owned
and leased by theCompany■ Overseas sites© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

9,264■ Water risk assessment
The IWATSU Group uses the “Aqueduct Water Risk
Atlas” to assess water risk at the IWATSU head office andplant sites where water intake is high.
In our assessment, we confirmed that the region where
the IWATSU Group engages in business activities does not
face a high level of water stress.
As part of efforts to ascertain the level of flooding risk,
we also checked hazard maps for each site.

*Overseas sites refer to Iwatsu (Malaysia) Sdn Bhd.

39

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Biodiversity and Forest Conservation

Initiatives related to conserving biodiversity
1. Climate change initiatives (reduction of greenhouse gases)
2. Reduction in use of harmful chemical substances such as
VOCs, PRTR substances, and RoHS substances
3. Compliance with reference levels for emission into the air andwater
4. Reduction in waste by promoting resource circulation■ Initiatives aimed at the sustainable use of forest
resources
The IWATSU Group offers some types of Master Paper
used in reprographic devices, one of our printing systemproducts, as products that use FSC-certified materials andmanaged materials, as we obtained FSCⓇ-CoC
certification for these products in September 2016. The
applicable Master Paper is manufactured at the Tochigi
Business Site of IWATSU Chemical Cross Co., Ltd.
In the procurement stage, we confirm that the paper ismade from materials from appropriately managed FSCcertified forests, recycled resources, or other managedsupply sources. We also manage materials by identifying
them clearly so that paper made from wood from nonmanaged forests will not be mixed in during the Master
Paper production process, enabling us to deliver Master
Paper to customers as an FSC-certified product.
*IWATSU Group business sites with FSCⓇ Certification:
IWATSU Chemical Cross Co., Ltd. [FSCⓇC131860] (Main Site)
IWATSU Chemical Cross Tochigi Business Site (Sub Site)*FSCⓇ: Forest Stewardship CouncilⓇ
FSCⓇ is an international non-governmental organization established to promote responsible
management of forests in the world.
FSC® certification is an international certification system for identifying responsibly managed
forests and products made from forestry products produced in these forests, recycled resources
and raw materials from other managed supply sources, which are appropriate from the viewpointof environmental protection, consistent with social benefits and economically sustainable.
There are two types of certification: forest management (FM) certification and chain of custody(CoC) certification.
Consumers can indirectly support the preservation of forests around the world by purchasing
products with FSC labels.

■ Internal systems related to social contribution
activities
The IWATSU Group has created a multi-purpose special
leave system, which employees can use when participating
in forest volunteering and other social contribution activities
aimed at environmental conservation.

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

■ Direct impact of business activities on
biodiversity
We have not identified any IWATSU Group businessactivities that have a significant direct impact on
biodiversity.
We believe, however, that we have an indirect impact on
biodiversity in areas such as rising temperatures causedby the emission of greenhouse gases, ocean acidification,
droughts, harmful chemical substances and industrial
waste output by our business activities, and the problem ofplastic waste, which has attracted attention as a major
environmental issue in recent years. Under this belief, weare engaged in the following activities, which we believe
contribute to conserving biodiversity.

40

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Resource Circulation■ Recycling designs for IWATSU products
In product assessments related to products developed
by IWATSU, the IWATSU Group sets and assesses thefollowing criteria related to recycling.
Under our product assessment criteria revised in April
2023, products developed by IWATSU must satisfy thefollowing criteria related to recycling.
 Recyclable rate Unification of materials
 Ease of separation
 Classification and material labeling Recycling labeling for secondary batteries

 Nickel cadmium batteries (Ni-Cd)
 Nickel metal hydride batteries (Ni-MH)
 Lithium-ion batteries (Liｰion) Ease of removal of secondary batteries
 Considerations to enable reuse (packaging materials)
 Rate of reduction of plastic materials (packaging materials)
 Creation of explanatory materials regarding recycling anddisposal*JBRC, Inc.
A body that conducts joint recycling activities for portable rechargeable batters sold and provided
by its members (manufacturers of portable rechargeable batteries and the devices that use
those batteries, importers, etc.), based on the “Act on the Promotion of Effective Utilization of
Resources.”■ Heat recovery with VOC abatement system
At our Tochigi site, in order to remove volatile organic
compounds (VOCs), we recover generated heat with heatstorage-type deodorizing systems attached to our coater
dryers, and reuse it as a heat source for our boilers.
In fiscal 2022, we actually used 44 tons of LPG (butane),compared with the 56 tons that would have been required if
we had not recovered this heat, thus successfully reducing
LPG usage by 12 tons.
■ Distillation and reuse of organic solvents
We have installed a distillation and recovery system at
our Tochigi site to enable us to reuse organic solvents
such as toluene, which are used to clean manufacturing
equipment. Using this equipment allowed us to reuse
8,540 liters of organic solvents in fiscal 2022.

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

 Degradability■ Promotion of recycling of portable rechargeable
batteries
IWATSU Electric and Tohtsu Industry are contributing toresource recycling based on the Act on the Promotion of
Effective Utilization of Resources, by participating in JBRC,
Inc. and collecting and recycling portable rechargeable
batteries under the recycling scheme operated by JBRC.
The batteries collected under this scheme include thefollowing batteries used in products such as IWATSUmanufactured on-premises PHS systems.

41

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Resource Circulation■ Heat recovery with VOC abatement system
Waste output and recycling rates at IWATSU Electric(Kugayama site) and our plant sites in Japan in fiscal 2022
were as follows.
Waste output
Site[Tons]

TargetActualAssessment

200

89

○

Aizu

4.9

2.3

○

Sukagawa

44.9

46.8

×

Izumizaki

280

282

×

Tochigi

118

108

○

Hachioji

7.7

7.6

○

Total

655.5

534.8

○

Recycling rate
Site

TargetActualAssessment

Kugayama

98%+

99.4%

○

Aizu

75%+

66.7%

×

Sukagawa

90.2%+

78.2%

×Izumizaki

99.7%+

90.0%

×Tochigi

99%+

99.9%

○

Hachioji

99%+

99.9%

○

Total

93.5%+

92.6%

×Total output
535

Total amountrecycled
495[Tons]

Final disposal
amount40

In fiscal 2022, we were able to reduce the total output,
which was 567 tons in fiscal 2021, to 535 tons. However,
output increased at some plant sites due to the completionof the disposal of PCB waste.
The target total recycling rate was not achieved becausesome sites fell short of targets due to changes in theindustrial waste treatment process. For example, plastic
container and packaging materials that were previously
recyclable are now handled as industrial waste.
The recycling rate also includes thermal recycling.
Increasing the quality of recycling, through changing tomaterial recycling, etc., is an issue for the IWATSU Group.

■ Appropriate management of PCB waste
Among the IWATSU Group companies, IWATSU Electric(Kugayama) and Iwatsu Manufacturing (Aizu, Sukagawa
and Izumizaki) have PCB waste.
The two companies manage stored PCB waste
appropriately and disposed of it in a well-planned manner.
PCB waste managed by the IWATSU GroupType

Concentration

Storage site

Fluorescent lightstabilizers

High
concentration

Kugayama, Sukagawa

Transformers

Low
concentration

Kugayama, Aizu, Sukagawa,Izumizaki

Capacitors

High and low
concentration

Kugayama, Sukagawa

Reactors

Low
concentration

Kugayama

The disposal of the high-concentration PCB waste thatwas discovered at the Kugayama site in fiscal 2022
(fluorescent light stabilizers and capacitors), excluding
fluorescent light stabilizers, was completed by the Japan
Environmental Storage & Safety Corporation (JESCO) by
January 2023. The disposal of low-concentration PCB
waste was also completed at licensed facilities by October2022.
The disposal of the newly discovered fluorescent lightstabilizers (high-concentration PCB waste) was completed
by JESCO in June 2023.

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Kugayama

Total output, total amount recycled, final disposal amount*JESCO (Japan Environmental Storage & Safety Corporation)
A special company fully funded by the national government that processes PCB waste, which
was previously performed by intermediary storage operators contracted by the national
government, etc., and the former Japan Environmental Safety Corporation

42

Contents

3

Respect for diversity andincrease in employee job
satisfaction

Promotion ofcommunication andcoexistence with local
communities

Environment

Society

GovernanceAppendix

S o ciety Development of Attractive New Products and Services through Technological Innovation
 Enhancing customer satisfaction by improving the quality of products and services

 Respect for human rights and diversity
 Human resource development and technologicaltransfer Promotion of health and productivity

management

 Promotion of communication and coexistence with local communities© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Social progress anddevelopment throughproducts and services
focused on connection,measurement andcommunication

Sustainability Management

43

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Respect for human rights and diversity
Basic Approach to Respect for Human Rights

Iwatsu Group Human Rights Policy
At the IWATSU Group (IWATSU Electric Co., Ltd. and Group
companies), we believe that respect for human rights of all thepeople involved in our business activities forms the basis of ourbusiness management and it a responsibility we have as acorporate citizen aiming to establish a sustainable society.
To fulfill this responsibility, we will sincerely address the various
human rights risks involved in our business activities and strive to
mitigate these risks.

Initiatives based on the Human Rights Policy
1. We respect international guiding principles including theInternational Bill of Human Rights (the Universal Declaration of
Human Rights and the International Covenants), the ILO
Declaration on Fundamental Principles and Rights at Workand the UN Guiding Principles on Business and Human
Rights. We also comply with the laws and regulations of thecountries and regions where the IWATSU Group engages in
activities.
2. We identify human rights risks which could occur in ourbusiness activities and strive to reduce and prevent risks to not
violate human rights and not encourage the infringement of
human rights.
3. Where human rights infringement has been caused or
encouraged by our business activities, we will take appropriate
measures and make efforts to correct the situation.
4. We implement training and awareness-raising activities related
to respect for human rights, with the goal of ensuring that thispolicy and human rights are understood deeply and actions
are taken accordingly.
5. The policy applies to officers and employees of the IWATSU
Group, and we also encourage the Group's business partners
to observe it.
6. We will regularly disclose our initiatives on respect for humanrights based on this policy.

Iwatsu Group Human Rights Policy
https://www.iwatsu.co.jp/wpcontent/uploads/2023/03/humanrightspolicy.pdf■ Human rights areas to respect and consider
At the IWATSU Group, we believe that internationallyrecognized human rights, such as the human rights statedin the International Bill of Human Rights and the principles
related to fundamental rights that are presented in the ILO
Declaration on Fundamental Principles and Rights at
Work, should be respected in our business activities.
In addition, we understand that procurement activities
that consider human rights risks, such as conflict minerals,
forced labor and child labor, are necessary in our supply
chain. We also believe that it is essential to consider andrespect human rights related to new technologies,
including AI, which has been developing remarkably inrecent years, as well as information security, climatechange and other environmental problems and gender andsexual minorities.

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

■ Establishment of the IWATSU Group Human Rights
PolicyAt the IWATSU Group, based on our belief that thehuman rights of all of the people involved in our businessactivities should be respected in the management of ourbusiness, we have been advancing initiatives guided by
our Corporate Philosophy, Contributing to the creation of asociety filled with purpose through communication thatconnects everyone and everything. In March 2023, weestablished the IWATSU Group Human Rights Policy toensure our businesses reflect the consideration of humanrights, whose importance has been increasing in recent
years.
We established and published this policy after it wasapproved by the Board of Directors of IWATSU Electric.
We are striving to comply with the policy while also working
to increase people inside and outside the Group's
awareness of the policy.

44

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Respect for human rights and diversity
Overview of Activities Related to Respect for Human Rights■ Action plan on respect for human rights
Based on the IWATSU Group Human Rights Policy established in March 2023, the
IWATSU Group aims to ensure that human rights are thoroughly respected in our value
chain, including by suppliers, by fiscal 2030.
Following the formulation of the Human Rights Policy in fiscal 2022, in fiscal 2023 we areorganizing issues regarding the action plan for specific initiatives in fiscal 2024 and theestablishment of the Human Rights Policy, in addition to clarifying and identifying humanrights risks.

Checking how thoroughly thepolicy has been instilled
Organizing the issues faced inensuring the policy becomes instilled
Presenting the policy in the
Sustainability Report

Fact-finding surveys including
those affiliated companies
Identification of human rights
risks
Organizing priority risk
countermeasures

First
tier

Implementing the measures for
instilling the policy
Ensuring the policy becomes
more deeply instilled within thecompanies, including affiliates
Enhancing the content ofreports

Fact-finding surveys including
those for suppliers

Taking corrective measures toaddress human rights risks

Building a structure thatminimizes risk

Scope of identification outside the Group
Scope of the subjects of the questionnaire surveys

Suppliers
Secondtier

Customers
Wholesalers

Affiliated companies

Head office

The requirements of the
Sustainable Procurement
Guidelines are observed bycompanies including
suppliers

Disposal
BuyersIwatsu Manufacturing
IWATSU Chemical
Cross
IWATSU System &Software

IWATSU Electric

IWATSU Business
Servicesand 4 other companies

Scope of the questionnaire surveys
Overseas

Measures for implementing
policyAnalysis of human rights risks

FY2030Japan

Policy and information
disclosure

Formulation of a human rights
policyFY2024 and FY2025

The Group
Out of scope

Consumers© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Scope of consideration ofhuman rights risks

Action plan for the period until FY2030- FY2023■ Scope of consideration of the IWATSU Group's human rights risks
We identify human rights risks by targeting not only the IWATSU Group but its entire value
chain, including suppliers and customers in Japan and other countries.
In addition, we conduct fact-finding questionnaire surveys of IWATSU Electric and its
affiliates to learn about their awareness of human rights to respect human rights andconsider their human rights policies.

Under development

45

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Respect for human rights and diversity■ Process of identifying human rights risks
At the IWATSU Group, we are assessing and identifying human rights risks in accordancewith the processes shown in the Guiding Principles on Business and Human Rights
established by the United Nations, under a structure centered on the ESG Committee, which
has been joined by the ESG Network and the Human Rights Working Team.
In the process of identifying human rights risks, we conduct a human rights questionnaire
survey of the IWATSU Group, in addition to discussion by the working team, and its results
are reflected in risk assessments.

■ Human rights risks that have been identified
We organize the human rights risks identified through the aforementioned process byclassifying them into the risks where the IWATSU Group may directly impact human rights,
where the Group may indirectly impact human rights, and where the impact to human rights
may be spread across the value chain.
The human rights risks that have been identified are as follows.

Processes addressing the human rights risks specified in the UN Guiding Principles on Business andHuman Rights

List of human rights risks

Corrective andremedial actions
addressing
priority risks

Suppliers
First
tier

Evaluation ofeffectivenessProcesses for addressing risks within the IWATSU Group (FY2023)
Will be established by
the end of FY2023

Conducting aquestionnaire survey ofthe head office andaffiliates to learn abouthuman rights risks

Establishing
perspectives for risk
assessment

Defining the scope ofrisk assessment

Classifying risks foreach stakeholder andidentifying specific
eventsOrganizing issues to besolved to promote theunderstanding of humanrights risks and instill
related policies

Assessing andidentifying human rights
risks

Setting measures toaddress priority risks

IWATSU Group
Affiliated companies

Risks where the
IWATSU Groupmay directly
impact humanrightsScope of processes to be built by
the IWATSU Group in FY2023

Established

Secondtier

Wholesalers

Head office

Customers
Disposal
BuyersConsumers

Occupational health and safety

Various types of harassment

Insufficient or unpaid
wages, and a living wage
Risks where the
IWATSU Groupmay indirectly
impact humanrightsOccupational health andsafetyAccess to social security
Forced labor

Privacy rights
Risks where theimpact to humanrights may be
spread acrossthe value chain.

Gender-related human rights problems
Human rights issues in supply chains© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Commitment
under the Policy

Assessment andidentification ofhuman rights
risks

Human rights issues related to the environment and climate change

46

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Respect for human rights and diversity

e-learning attendance rate
Rate in June 2023
IWATSU Electric

95.9%

IWATSU Group

97.0%■ Cooperation between labor and management
Labor unions have been formed at IWATSU Electric and
Iwatsu Manufacturing.
Our basic stance is to respect the ILO Core Labor
Standards and address various issues through dialogue
between labor and management. Specifically, we
exchange views and form agreements through discussions
between labor and management, etc., on various issues
related to management issues, personnel systems,
workstyles, etc.
For companies in the IWATSU Group that do not havelabor unions, we have selected labor representatives, whoparticipate in dialogue between labor and management
and have entered into agreements.
Proportion of unionized workers*1
FY2018FY2019（%）

FY2020

FY2021■ Formulation of the IWATSU Group Procurement
Guidelines
At the IWATSU Group, we established the IWATSU
Group Sustainable Procurement Guidelines in January2023 with the goal of addressing human rights risks in the
procurement process, including forced labor, which is laborthat is forced under pressure including threats andviolence, as well as discrimination based on race orgender.
We have posted these guidelines on our website toexpress them and ensure that people know our policies
and positions, both internally and externally.

IWATSU Group Sustainability Procurement Guidelines
https://www.iwatsu.co.jp/companydata/other/sustainability_procurement.pdf

FY2022IWATSUElectric*2

54.3

54.3

52.9

54.1

58.6

IwatsuManufacturing*2

77.8

79.4

78.9

79.1

81.8

*1. As of March 31 of each fiscal year
*2. Adopted union shop systems. Indicates the proportion of union members among full-time
employees, including those in management positions.

➡ See page 59 for more information about our supply chain
management, including the procurement guidelines.

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

■ Education or awareness-raising activities related tohuman rights
IWATSU Group believes that it is necessary to deepen
understanding of human rights and a diverse range ofvalues, and is taking steps to enhance related educationand efforts to raise awareness.
Regarding the various types of harassment that arehuman rights problems in workplaces, we have formulated
the Basic Policy on the Prevention of Harassment andprovide employees in each job class with harassment
prevention training. We have also established the Rules on
the Prevention of Workplace Harassment, which include
rules on establishing contacts for consultation andmeasures to prevent recurrence.
We provide new employee human rights training on
harassment and the importance of human rights inbusiness as part of the new employee training that we
provide immediately after people join the company.
In fiscal 2022, along with the establishment of the
IWATSU Group Human Rights Policy, we inform
employees and increased their awareness of thedisclosure of the general human rights policy, the IWATSU
Group Human Rights Policy, and human rights due
diligence via internal newsletters. In June 2023, we
provided all employees with an e-learning program on
business and human rights.

47

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Respect for human rights and diversity
Basic Approach to Respect for Diversity

Overview of Activities Related to Respect for Diversity

At the IWATSU Group, we believe that striving for anddeveloping a diverse range of human resources willcontribute to enhancing corporate value over the medium
and long term. Based on this belief, we recruit excellent
motivated human resources with future potential andpromote their active participation by respecting theirdiverse personal qualities and human rights, regardless ofnationality, race, gender, age, creed, religion,
sexual orientation, educational background, disability orother attribute.
Above all, we believe that an environment that enables
people to balance life events and their careers, which are
different for people of different ages and experience, isnecessary to help employees balance their family life andwork regardless of gender. Therefore, we are working toestablish a range of systems for realizing flexible
workstyles, such as teleworking, staggered working hours
and shortened working hours.

■ Promotion of the active participation of women
IWATSU Electric proactively recruits women, with afocus on new graduates, aiming to increase the percentage
of its new hires that are women to around 30%. We also
aim to achieve at least 10% of our managers being womenby 2030.

■ Hiring of disabled people
IWATSU Electric is focusing on hiring activities fordisabled people, as well as efforts to support the retentionof disabled employees after they join the Company. In thisway, we are taking steps to stabilize and promote
employment for disabled people.

Proportion of women in new employees* (IWATSU Electric)

Hiring rate of people with disabilities*

FY201830.0

FY202036.4

FY2021
27.8

Proportion of female employees in management roles*(IWATSU Electric)
FY20182.70

FY20192.75

FY20202.50

FY2021
2.70

FY202246.1（%）

FY2022
3.40■ Hiring of experienced talent
IWATSU Electric proactively recruits experienced
talented people while considering its personnel
composition, so that these human resources are 30% to
50% of all new hires.
Percentage of all new hires that are experienced workers*(IWATSU Electric)
FY201850.0

FY201930.8

FY202050.0

FY2021
18.2（%）

FY202233.3

FY2018
Statutory
employment rate
IWATSU Electric

FY2019（%）

FY2020

FY2021

2.2
1.2

1.3

FY2022

2.3
1.7

2.4

2.5

■ Hiring of foreign nationals
IWATSU Electric is strengthening hiring activities withthe aim of securing human resources from a diverse rangeof cultural backgrounds, and is also endeavoring toenhance the internal environment and systems.
■ Promoting active participation by senior employees
At IWATSU Electric, we have introduced a rehiring
system for employees who retire upon reaching retirementage, enabling us to provide a workplace where ambitious
and skilled human resources can continue to actively
participate. Senior employees are essential humanresources from the perspective of handing down technicalexpertise, so we will continue working to create
opportunities and an environment that enables them toactively participate over the long term.

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

22.2

FY2019（%）*The values in the overview of activities are as of March 31 of each fiscal year.

48

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Respect for human rights and diversity■ Data related to personnel, etc.
Proportion of men and women by age group*1
Age group

Younger than 30
years old

Gender（%）

FY2018FY2019FY2020

FY2021

Percentage of managers that are women*1

FY2022（%）

FY2018FY2019FY2020

FY2021

FY2022

7.9

7.3

8.3

7.1

IWATSU Electric

2.7

2.8

2.5

2.7

3.4

Female

1.8

1.8

2.4

3.7

4.1

IWATSU Group

4.4

3.6

3.6

3.4

3.3

Male

36.4

35.6

33.6

31.3

26.4

Female

5.3

4.3

4.0

3.9

3.9

Male

43.9

45.6

47.6

47.9

45.2

Female

4.0

4.8

5.1

4.9

4.5

Male

9.0

8.8

8.5

9.5

8.2

Female

6.4

7.2

7.1

8.3

8.0

Male

32.1

30.8

29.4

27.5

26.2

Female

14.1

13.3

14.4

13.0

14.4

Male

26.6

27.8

28.5

29.5

30.3

30~ 50 years old

50 years old orolder

50 years old or
olderFemale

11.8

12.1

12.1

12.2

12.9

（%）

FY2018IWATSU Group30~ 50 years old

Wage gap between men and women*1 and 2

IWATSU Electric

Younger than 30
years old

IWATSU Group

8.6

*3

FY2019FY2020

FY2021

FY2022All employees

70.3

71.7

71.9

71.8

74.1

Regular employees
included in the above

72.9

73.2

72.9

72.5

73.2

Non-regular employees
included in the above

57.8

62.9

66.1

57.4

60.3

All employees

-

-

-

-

57.9

Regular employees
included in the above

-

-

-

-

69.2

Non-regular employees
included in the above

-

-

-

-

48.2

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

IWATSU ElectricMale*1. As of March 31 of each fiscal year
*2. The ratio of the average annual wage of female workers to that of male workers was calculated.
*3. Excluding IWATSU Malaysia

49

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Respect for human rights and diversity■ Data related to personnel, etc.
Employee composition (head office)*(number of people)

FY2018
Number of people

FY2019Percentage

Number of people

FY2020Percentage

Number of people

FY2021
Percentage

Number of people

FY2022
Percentage

Number of people

Percentage

Regular employees

385

85.0%

369

83.7%

368

81.8%

344

79.6%

289

73.0%

Non-regular employees

18

4.0%

24

5.4%

30

6.7%

34

7.9%

54

13.6%

Regular employees

44

9.7%

43

9.8%

46

10.2%

49

11.3%

49

12.4%

Non-regular employees

6

1.3%

5

1.1%

6

1.3%

5

1.2%

4

1.0%

453

100.0%

441

100.0%

450

100.0%

432

100.0%

396

100.0%

Male

FemaleEmployee composition (IWATSU Group)*(number of people)

FY2018
Number of people

FY2019Percentage

Number of people

FY2020Percentage

Number of people

FY2021
Percentage

Number of people

FY2022
Percentage

Number of people

Percentage

Regular employees

836

63.2%

805

62.8%

802

61.5%

795

61.0%

745

58.4%

Non-regular employees

59

4.5%

59

4.6%

64

4.9%

69

5.3%

80

6.3%

Regular employees

271

20.5%

275

21.5%

298

22.9%

301

23.2%

317

24.8%

Non-regular employees

156

11.8%

143

11.2%

140

10.7%

135

10.4%

134

10.5%

1,322

100.0%

1,282

100.0%

1,304

100.0%

1,300

100.0%

1,276

100.0%

Male

FemaleTotal© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Total*As of March 31 of each fiscal year

50

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Human Resources Development
Basic Approach■ Overview of human resource development measures
IWATSU Electric provides tiered training, which isdesigned for each stage of employees'
development, specialized training related to operations ineach department, training related to management systems
and sustainability and other training programs, to promote
the development of the human resources who willcontribute to the achievement of business targets. We
have also established a qualification acquisition support
system and a system for supporting participation in training
provided by external institutions, aiming to support the
career development of each individual employee.

Grade 9Grade 8Grade 7
Grade 6
Grade 5
Grade 4
Grade 3

FY2020
Number of training
hours per employee*

Role
Department manager level
Assistant general manager
level
Executive
candidatesWorkplace leaders

Tiered training

Trainee

7.2h

9.7h

FY202213.3h

Skills development

Training for developing next-generation leaders
Mid-level executive training
New executive training
Training for developing workplace leaders
Mid-level employee training
Year 3 training

Grade 2
Grade 1

FY2021*Excluding OJTTraining system chart
Qualification class■ Number of training hours per employee
At the IWATSU Group, the number of training hours per
employee is one of the monitoring indicators used inhuman resource development.
Moving forward, we will work on human resource
development to increase the number of training hours per
employee year on year, through efforts such as improving
the work skills of young employees and enhancing themeasures to enable them to gain knowledge.

Qualificationobtaining
support system

System forsupporting
participation intraining
provided byexternal
institutions

Specialized
training, etc.

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

At the IWATSU Group, we believe that people are an
asset and the growth of each and every employee willcontribute to the growth of the Group. Based on thisbelief, we have listed "human resource development andtechnology transfer" as one of the themes of our activities
based on our material issues and we aim to enable thecontinued growth of the Group together with its employees.
The core competence that is required of us has beenchanging due to the decrease of the working population
associated with the declining birthrate and the aging of the
population in recent years, the development of AI and thedevelopment of advanced technologies including IoT androbots.
IWATSU Group companies have established training
systems and strive to enable employees to improve theirskills and acquire knowledge so that they can provide new
added value to customers and society leveraging thestrengths of each individual employee.

Overview of Activities

New employee training

51

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Human Resources Development■ System for supporting participation in training byexternal institutions
System for supporting participation in training provided
by external institutions enables all IWATSU Electric
employees to attend seminars and e-learning courses on
business skills, etc. organized by partner organizations
whenever they desire.
Face-to-face group seminars, which were suspended
due to the COVID-19 pandemic, were resumed in fiscal
2023. We use these seminars together with seminars held
online.

Number ofcourses taken

FY2018FY2019FY2020

FY2021

FY2022

79

106

59*

94

147

Examples of education in fiscal 2022
 Design-related training (circuit design, structural design,
software design, wireless technologies, product assessment,
etc. ) New product education (sales, maintenance services, etc.)
 Quality management, product safety standards, training on
risks related to product accidents
 Workplace-related training (waste management, chemical
substance management and SDSs)
 Trade management education
 Information systems-related education*The number of courses taken fell because group events were cancelled as a result of the
COVID-19 pandemic.

External training and seminars (fields)
 Corporate planning Personnel and labor Accounting, finance, and taxation
 General affairs, legal affairs, audits
 Sales and marketing Trade and logistics
 Digital transformation (DX) Business skills (logical thinking, negotiating, business manners,
communication, PC skills, etc.), etc.

 Digital transformation (DX) education
 Intellectual property-related education
 JIS Q 9100-related education■ Training on management system
We plan and provide training on ISO 9001 (QMS), ISO
14001 (EMS), ISO/IEC 27001 (ISMS), and JIS Q 15001(PMS), with the principal role played by the administrative
office of each IWATSU Group company that has acquired
the certifications.
• Environmental Management System (EMS) - P28• Quality Management System (QMS) - P61• Information Security Management System (ISMS) - P70• Protection of Personal Information Management System(PMS) - P72■ Sustainability-related education
The IWATSU Group provides the latest sustainabilityrelated information and training related to various issues,
aiming to raise awareness of sustainability and strengthen
engagement.
Examples of education in fiscal 2022
 ESG management and the SDGs
 Business and human rights— Why business enterprises are required to take human rights
measures — Learning about ESG management (a column in the internal
newsletter)■ Development of human resources involved in
manufacturing processes
Iwatsu Manufacturing plans and conducts education to
support the acquisition of necessary knowledge and skills
for manufacturing processes and the development of
human resources who will contribute to improving
operations and enhancing productivity.
At a training center established within the company,
Iwatsu Manufacturing provides education and training on
specific themes, as part of efforts to enhance the skills andknowledge of employees.
Examples of education at the training center in fiscal 2022
 TWI training (how to teach and improve work) Solder knowledge
 Soldering skill acquisition
 Quality management education
 General work rules education© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Number of courses taken(number of times the system for supporting participation in training
provided by external institutions was used)■ Specialist education
IWATSU Electric plans and implements specialist
education and training related to operations in
administrative, development, sales and marketing, andproduction management departments.

 Shipping operations basic rules and precautions
 Interruption and resumption of work, etc.

52

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Health and Productivity Management and Work-Life Balance
Overview of activities related to health andproductivity management

Promotion system

Sound physical and mental health is important for
enabling each and every employee to fully demonstrate
their capabilities and work energetically.
At the IWATSU Group, we have developed systems forsupporting the physical and mental health of employees
and enabling them to balance work and fulfilling personal
lives. Through this, we are also implementing measures toenhance our corporate value.

■ Health management implementation system
At the IWATSU Group, we have built a system forpromoting health and productivity management with the
Health and Productivity Management Administrative Office(General Affairs Department of IWATSU Electric) plating
the leading role in these efforts. With the above department
serving as an administrative body, initiatives related tohealth and productivity management are advanced incooperation with the ESG Committee, which is chaired by
the President & Chief Executive Officer, as wellas occupational health physicians, health insurance
associations and labor unions.

■ Health and Productivity Management Policy
The IWATSU Group established the IWATSU Group
Health and Productivity Management Policy in July 2023.
Guided by this policy, we have developed a range ofmeasures across the Group to increase health awarenessand encourage activities for maintaining and promoting
good health, aiming to make health and productivity
management a reality.

Structure for promoting Health and Productivity Management
ESG Committee

Chair: Representative Director
and President

IWATSU Group Health andProductivity Management Policy
We believe that, for the IWATSU Group to remain a corporate
entity that contributes to society, every employee must be able toto work energetically in good health and demonstrate their
qualities to the full. By implementing various measures toincrease employees' health awareness and maintain andpromote good health, thereby realizing health and productivity
management, we will provide more value to our stakeholders andcontribute to the advancement and development of society.

Industrial
physicians

Health nurse■ Encouragement of exercise
Working together with health insurance associations, the
IWATSU Group implements various measures toencourage exercise to prevent lifestyle-related diseases.
Various measures to encourage exercise

Coordination

Health andProductivity
Management
Coordination
Coordination
Administrative Office■ Improving the health awarenessIn fiscal 2023. we began to provide all Group employeeswith online training related to diet, exercise, drinking, sleep,smoking, mental health and other health issues. We also
hold events to improve diet with guidance from a national
registered dietitian, aiming to reduce the number of
employees with hyperlipidemia, which is one of the healthissues faced by the Group.
Developing a culture of mutual understanding andsupport for health problems specific to women, which is an
issue that impacts both genders, is important for promoting
the active participation of women. Therefore, we increase
employee awareness with video training programs, etc.

 Walking event
Healthinsurance
associations

 Planning sports events and subsidizing participation in these
events Subsidizing the use of external sports clubs

Number of walking event participants (IWATSU Group*)
Coordination

Labor union

Number ofparticipants

FY2020

FY2021

FY2022

19

59

104

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Basic Approach*Excluding Iwatsu (Malaysia) and groxi

53

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Health and Productivity Management and Work-Life Balance■ Measures to promote smoking cessation
We implement various measures to promote smoking
cessation jointly with health insurance associations to
reduce the number of smokers at the IWATSU Group.

 Distribution of free smoking-cessation pipes and gum
 Subsidies for employees receiving smoking cessation
outpatient services
 Implementation of an online smoking cessation program

Rate of employees who smoke*1

IWATSU Electric
IWATSU Group*2

FY2019FY2020

FY2021

FY2022

 Shortened working hours during pregnancy system
 Maternity leave (pre- and post-pregnancy)
 Childcare leave and temporary suspension of work system

Male

Female

32.5

4.9

31.1

7.5

30.4

7.5

28.6

6.8

26.9

4.0

Male

34.8

33.7

33.4

31.7

29.6

Female

22.2

20.3

17.2

17.4

18.7

 Offset shift system for childcare Shortened working hour system for childcare and nursing care(can also be acquired in half-day and hourly units)

FY2018FY2019FY2020

FY2021

FY2022

Male

2/6

1/8

0/3

2/4

1/1

Female

0/0

0/0

1/1

1/1

1/1

Male

4/10

2/13

0/5

7/10

3/3

Female

7/7

8/10

9/9

5/6

8/8

Rate of employees returning to work after time off for childcare*1

 Nursing leave for children until they graduate from elementary
school (can also be acquired in half-day and hourly units) Multi-purpose leave system for participation in school eventsand cases when children’s schools are closed, which isavailable until they graduate from elementary school (Thissystem can also be used when caring for spouses during theirpregnancy and participating in learning sessions about
pregnancy, childbirth and childcare, such as parenting classes.)
 Relative nursing care leave Nursing care temporary suspension of work system (can also
be acquired in half-day and hourly units)(%)

FY2018FY2019FY2020

FY2021

FY2022IWATSUElectric

100

100

－

100

100

IWATSU
Group

57.1

50.0

62.5

40.0

42.9

*1. As of March 31 of each fiscal year or actual results*2. Excluding IWATSU Malaysia and groxi© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

FY2018（%）

 Morning sickness leave system(Number of persons who took leave / eligible persons)IWATSU Group

Systems to support employees giving birth, raising children,
or caring for relatives

Number of employees who took time off work for childcare*1

IWATSU Electric

Measures to promote smoking cessation■ Support for giving birth, raising children, andnursing care
For employees who are giving birth, raising children, or
caring for relatives, IWATSU Electric has created leavesystems, shortened working hour systems, and offset shiftsystems that employees can use regardless of whether
they are male or female, in addition to statutory leavesystems. In this way, we are supporting the balance
between home and work.

54

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Health and Productivity Management and Work-Life Balance
Overview of activities related to the improvement of job satisfaction
At the IWATSU Group, we believe that provision ofenvironment where every employee is able to work
energetically and have job satisfaction leads to moreenergetic workplaces and to increased corporate value.
Based on this belief, we promote new workstyles andflexible workstyles that support our diverse humanresources.

Average overtime working hours*3(Hours)

FY2018FY2019FY2020

FY2021

FY2022IWATSUElectric

12.7

12.6

12.0

10.8

10.7

IWATSUGroup*4

10.8

9.6

8.8

9.5

9.8

Main systems and measures Refresher leave system Multi-purpose leave (available for public volunteer activities andvolunteer activities related to raising the next generation, suchas schools and local communications) Paid leave uptake campaign (June) Days with company-wide finishing times (second and fourth
Friday of every month)

Average number of days of paid leave taken
FY2018FY2019FY2020(day)

FY2021

FY2022■ Establishment of a remote work environment
IWATSU Electric has distributed notebook PCs anddeveloped an environment that enables employees toremotely access the internal network to build a work
environment where employees can choose to work
remotely in accordance with their individual workstyle.
We also promote the use of satellite offices to support
remote working.
■ Abolishment of dress code*5
IWATSU Electric has abolished its dress code,
permitting employees to wear whatever they want, inprinciple, so that they can work in attire that suits theirindividual workstyle.
Starting with this new system, we aim to create aworkplace environment where diversity is respected anddevelop a corporate climate that enables people to create
new value and ideas with a flexible mindset.
*1. At different IWATSU Group companies, there are differences in the availability of the system
and rules on the days when all employees leave work at the same time.
*2. At subsidiaries without labor unions, measures are taken in accordance with laws
*3. Monthly average overtime work
*4. Excluding IWATSU Malaysia and groxi*5. There is a rule requiring work clothes to be worn during experiments and research, etc. toensure safety.

IWATSUElectric

11.0

11.0

12.0

12.4

12.9

IWATSUGroup*4

11.0

11.4

11.2

11.2

12.0

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

■ Measures to prevent long working hours
At the IWATSU Group, we proactively implement
measures to prevent long working hours in consideration of
employees' health, including prevention of mental
health problems, brain disease and cardiovasculardisease.
Specifically, we have set days when all employees leave
work at the same time*1 to avoid unnecessary overtime
work and encourage them to work in a well-balancedmanner. For business sites with labor unions, we havemade it mandatory*2 for employees working long hours to
be interviewed by general affairs departments, labor
unions, etc. and undergo a medical interview by an
occupational health physician.

■ Enhancing various types of leave system
IWATSU Electric decided to expand the use of the hourly
paid leave system, which was introduced in fiscal 2021, to
special leave (for caring sick or injured children andproviding nursing care to family members) in fiscal 2022. In
addition, the scope of employees that are eligible for therefresher leave system, which grants paid leave based on
years of service, was enhanced in fiscal 2023.

55

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Occupational health and safety
Promotion system

At the IWATSU Group, we believe that a state where
every employee works with peace of mind anddemonstrates their capabilities leads to energetic
workplaces and the improvement of productivity.
To make this a reality, it is important
to develop occupational health and safety in the workplaceand maintain and enhance it by minimizing risks andharms regarding occupational health and safety.
At the IWATSU Group, we are promoting the creation ofa safe, healthy workplace environment that meets
employees’ needs from social, psychological and physicalperspectives by working to prevent employees fromcontracting illnesses being injured at work or while
commuting, addressing the causes of stress which impacts
their mental health, and taking measures to prevent
incidents, etc.
When workplace or commuting injuries are predicted
due to a typhoon, heavy snowfall or similar event, we
encourage employees to work remotely or return homeearly and take other initiatives in our efforts to prevent
accidents.

IWATSU Group has established systems to manage
health and safety, in order to prevent occupational injury
and promote the creation of a comfortable workplaceenvironment.
■ Health and Safety Committee
IWATSU Electric has established a Health and Safety
Committee, whose members include the Manager
Responsible for General Health and Safety, occupational
health physicians, representatives of labor unions and theadministrative office. Representatives of health insurance
associations also participate as observers. The Company
endeavors to share and enhance awareness of the content
of this committee’s deliberations and reports among
employees, through internal newsletters and the intranet,as necessary.
Health and safety management organization chart(IWATSU Electric)
President

General Health and Safety Manager

Health and Safety Committee

Secretariat

Iwatsu Manufacturing has established Health and Safety
Committees at each business site. The members of thesecommittees consist of safety mangers, sanitation
managers, occupational health physicians, representativesof labor unions, and the Administrative Office. Iwatsu
Manufacturing has also established Workplace Health and
Safety Committees at two business sites, and themembers of these committees play an active role.
Further, a Health and Safety Committee has also been
established at the Tochigi Business Site of IWATSU
Chemical Cross, which was spun off from Iwatsu
Manufacturing in October 2022.
Health and safety management organization chart(Iwatsu Manufacturing)
Health and Safety Committee

Sukagawa Plant
Health and Safety
Committee

Izumizaki Plant
Health and Safety
Committee

Workplace Healthand Safety
Committee

Workplace Healthand Safety
Committee

Health and safety management organization chart(Tochigi Business Site of IWATSU Chemical Cross)President

Expert Committee

Health and Safety Committee
Sanitation Manager

Security Manager

Aizu Plant Healthand Safety
Committee

Secretariat© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Basic Approach

Industrial physicians
Sanitation Manager

Security Manager

Industrial physicians56

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Occupational health and safety
Overview of Activities
Training on the use of fire extinguishers

Online training Initial actions to be taken in the event of an earthquake How to use a fire extinguisher

On-site training on the use of fire hydrants■ Stress checks
As part of measures to address mental health, IWATSU
Group holds stress checks for employees once a year. We
notify employees of the results of the stress checks,
helping them to identify the situations causing them stress.
Due consideration is also given to privacy, to ensure that
the Company does not obtain the results of stress checks
without the subject’s consent.
Percentage of
employees undergoingstress checks

FY2018FY2019FY2020

FY2021

FY2022IWATSU Electric Co.,
Ltd.

96.1%

91.0%

97.0%

98.1%

97.3%

Iwatsu ManufacturingCo., Ltd.

100%

100%

100%

100%

100%

*Because IWATSU Chemical Cross was established in October 2022,
the statistics of this company for fiscal 2022 and earlier are included in the Iwatsu Manufacturing
statistics.

 Evacuation in the event of a fire, etc.
On-site drill (instructions given by the Ogikubo fire
department) Training on initial firefighting given to in-house fire brigades, etc.

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

■ Initiatives to prevent fire and disasterAt the IWATSU Group, we hold a fire and disaster
drill once a year to ensure appropriate actions are taken in
the event of a disaster, such as evacuation during a major
earthquake or self-implemented firefighting, including initial
responses in the event of a fire.
In addition to the on-site drill, IWATSU Electric
conducted an online drill for all employees including theemployees of branches and sales offices as a new fire
prevention and disaster control initiative.
The online drill and on-site drill conducted inparallel have enabled more employees to receive training.

Both of the above were provided at IWATSU Electric.

57

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Occupational health and safety
Overview of Activities■ Prevention of occupational and commuting injuries
Iwatsu Manufacturing, which has production plants,
places the utmost priority on the safety of employees, andensures that there are inspections before work starts andsafety patrols. This company also endeavors to increaseawareness of safety and prevent occupational injury byproviding education on the safe use of production
equipment and chemical substances.
IWATSU Electric holds a safe driving session once a
year to protect the safety of employees who drive cars,
motorcycles, bicycles and other vehicles for commuting
and work and to promote traffic safety.
In fiscal 2022, an online lecture on the occurrence andprevention of traffic accidents was given by an external
lecturer, with approx. 200 people from the head office,branches, sales offices, Group companies and others
attending.
■ Alcohol checks before and after driving
IWATSU Electric checks if the people driving cars forwork are under the influence of alcohol, before and after
driving, and keeps records of the results.
Regarding the use of an alcohol detector for the check,
which has been postponed, preparations are underway torespond to the requirement to use the detector for thealcohol checks, which will begin in December 2023.

Number of occupational and commuting injuries*

IWATSUElectric Co.,Ltd.

IwatsuManufacturingCo., Ltd.

IWATSU
Chemical
Cross Co., Ltd.

FY
2018

FY
2019

FY
2020

FY
2021

FY
2022

Occupational
injury

1

1

1

0

1

Commutinginjuries

0

1

1

1

1

Occupational
injury

2

4

1

4

1

Commutinginjuries

0

0

0

0

0

Occupational
injury

-

-

-

-

0

Commutinginjuries

-

-

-

-

0

*Includes minor incidents that resulted in less than one day of work lost. Between fiscal 2018 and2022, only one occupational injury requiring compensation for time off work occurred at Iwatsu
Manufacturing, in fiscal 2021.
*Because IWATSU Chemical Cross was established in October 2022, the number of injuries atthis company for the period until September 2022 are included in the statistics of Iwatsu
Manufacturing.

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

■ Risk assessment for chemical substances
Once a year, IWATSU Electric performs chemical
substance risk assessments for departments that use
solder, chemical solvents, and other chemical substances.
Chemical substances are mainly used in design anddevelopment. Assessments conducted in July 2022
showed that no highly harmful substances are in use, andthe amounts used of chemical substances are also low. As
a result, no workplaces were found to present a high risk tohealth.
Similar assessments are also conducted at Group
companies which use chemical substances for
manufacturing, repair and other purposes.
Protective equipment is introduced and equipment is
improved based on the results of the assessments to
reduce the use of hazardous chemical substances in the
manufacturing process and the risk of exposure to thesesubstances.
In addition, the Industrial Safety and Health Act waspartially amended in May 2022 and new chemicals
regulations began in April 2023. The IWATSU Group
responded to these new regulations in advance of theirimplementation. We are also responding to the regulations
that will come into effect in April 2024.

58

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Supply Chain Management
Overview of Activities

In the corporate environment of our time, globalization
has accelerated, making it important to address global
issues including issues related to human rights, theenvironment, pandemics and the increasing severity ofnatural disasters associated with climate change.
At the IWATSU Group, we respond to social
requirements by working together with all of the trading
partners involved in our supply chain, including in the
procurement of parts and materials, development,
production, sales, services and recycling, aiming to build asustainable society and increase our competitiveness.

■ IWATSU Group supply chain management
Almost all products offered by the IWATSU Group are
manufactured at one of five production sites (four in Japanand one overseas), with materials procured from numerous
trading partners in Japan and overseas.
Under our Sustainable Material Procurement Policy, we
inform our trading partners of our Sustainable Procurement
Guidelines, request that they implement initiatives
accordingly, and audit their plants to manage the quality ofthe procured goods, thus promoting supply chain
management.

Sustainable Material Procurement Guidelines
1. We will conduct business in good faith with all trading partners
in Japan and overseas by fairly providing them with
opportunities and observing related laws, regulations andcontracts from a position of equality with them.
2. We will conduct procurement prioritizing trading partners who
agree to and comply with the IWATSU Group Sustainable
Procurement Guidelines.
3. We will procure competitive products and services based on
economic efficiency by comprehensively judging the quality,
ability to observe delivery dates and ensuring stable supply,
price, technological and service skills and corporate stances toimprove capabilities in these areas.
4. We will take thorough information security measures to protect
trading partners' personal information and confidential
information that we obtain in the course of business.
5. We will deepen mutual understanding and build relationships oftrust with all trading partners and act together with them tocontribute to the establishment of a sustainable society.

Main procured items at production sites
 Electronic components
 PCBs Molded resin products

 Sheet metal materials
and processed sheet metal
products
 Chemicals■ Materials seminars
At the IWATSU Group, we hold yearly materials
seminars to share our business policies and approach to
new business development and procurement with trading
partners and to promote business activities together withthem.
We began to hold the seminars online in fiscal 2020 in
response to the COVID-19 pandemic. In fiscal 2022, we
held the seminar in October.
*In July 2023, we held the seminar in-person for the first time in four years at Iwatsu
Manufacturing, with the participation of our trading partners.

■ Establishment of Sustainable Procurement
Guidelines and Green Procurement Standards
At the IWATSU Group, we established the IWATSU
Group Sustainable Procurement Guidelines and the
IWATSU Group Green Procurement Standards which
supplement the guidelines in January 2023 in light of thesocial situations related to sustainable procurement inrecent years.
We prioritize trading partners who agree to and comply
with these guidelines, in our efforts to ensure sustainableprocurement.
IWATSU Group Sustainability Procurement Guidelines
https://www.iwatsu.co.jp/companydata/other/sustainability_procurement.pdf

IWATSU Group Green Procurement Guidelines
https://www.iwatsu.co.jp/companydata/other/green_procurement.pdf■ Initiatives targeting conflict minerals
In accordance with the Sustainable Procurement
Guidelines, IWATSU Electric requests that its trading
partners not deliver parts or materials connected to conflictminerals.
We respond to customers’ surveys concerning conflictminerals after checking with our trading partners in Japanand overseas.

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Basic Approach59

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Quality Management
Basic Approach

QMS Promotion System

At the IWATSU Group, we believe that it is important tocontribute to building a sustainable society by solvingsocial issues with products and services that are of
excellent quality and safety. Based on this belief, we haveestablished the Quality Policy that guides us in our work to
improve the quality of our products and services andcustomer satisfaction.

In the IWATSU Group, we have created a quality
management system (QMS) based on ISO 9001, and weare now operating and managing this system as part of ourefforts to ensure quality and enhance customer satisfaction.
Under the direction of the manager responsible for the
QMS, the Group Secretariat coordinates with eachdepartment and internal auditors to promote continuous
performance improvements through internal audits,management reviews, and other measures.

Quality Policy

Management: President and Director of IWATSU Electric Co., Ltd.
Head of QMS Management

IWATSU Group Internal Auditor
Iwatsu Group Secretariat

Applicable organizations (7 in Japan)

Status of acquisition of ISO 9001
Company name

Status of acquisition

Certification body / number

IWATSU Electric. Co., Ltd.*○

Iwatsu Manufacturing Co., Ltd.

○IWATSU Chemical Cross Co., Ltd. *1○

IWATSU Network Solution Co., Ltd. *1○

3. We will endeavor to achieve efficient business management
and improvements in management indicators by improving
the quality of our operations.

IWATSU Business Services Co., Ltd.

○

4. We will endeavor to develop human resources, in order toachieve technological innovation and enhance the quality ofour products, services, and operations.

IWATSU SYSTEM & SOFTWARE CO., LTD.

○

Tohtsu Industry Co., Ltd.

○

Dentsu Service Co., Ltd.

×―

groxi Inc. *2

×―Iwatsu（Malaysia）Sdn Bhd*2●

SIRIM／QMS 02860

1. We will strive for technological innovation, to enable us todevelop attractive products and services, and fulfill the needsof society and our customers.
2. We will endeavor to increase customer satisfaction throughimprovements to the quality of our products and services.

5. We will improve our quality management system on an
ongoing basis, in accordance with the requirements ofstandards, our customers, and other requirements.

*The above Quality Policy applies to ISO 14001-certified organizations in Japan.

JIC Quality Assurance Ltd. / 3773

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

The IWATSU Group will contribute to social progress anddevelopment by offering high-quality products and services
centered on “connecting,” “measuring,” and “communicating.”

Structure for promoting Quality Management System (QMS)*1. Including sales sites*2. As a result of the share transfers, groxi Inc. and Iwatsu (Malaysia) Sdn Bhd were excluded from the list of consolidated subsidiaries of IWATSU Electric Co., Ltd. in June 2023 and September 2023,
respectively.
○: Acquired as a group certification by the head office of IWATSU Electric●: Acquired individually Iwatsu (Malaysia) Sdn Bhd has developed and operates a separate QMS promotion system to that of our operations in Japan

60

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Quality Management
Overview of activities (organizations which the QMS certification in Japan applies to)■ Internal audits
Once a year, the head office of IWATSU Electric leads areview of the conformity and effectiveness of the IWATSU
Group’s QMS.
[Implementation time] October to December 2022*[Subject] 14 sites across seven companies(IWATSU Group, in Japan)[Results] No major non-conforming items[Implementation time] January 2023（renewal inspection）[Certification body] JIC Quality Assurance Ltd.
[Results] Non-conforming items: 1;
opportunities for improvement: 39■ Management review
Twice a year, the IWATSU Group Secretariat leads
management reviews within the Group. Senior
management receives reports on matters such as thestatus of achievement of quality targets, the monitoring ofcustomer satisfaction, and points for improvement related
to the QMS.
[Implementation time] April 2022
(summary for the previous fiscal year*2)
January 2023 (internal audit report*2)■ Prevention of product accidents
The IWATSU Group has put in place internal regulations
that we have developed to enable us to respond promptly
and appropriately to any major accidents or emergencies
related to our products. In addition to spreading awarenessof whistleblowing rules through pages on the internal
intranet, we also use education to promote the thoroughimplementation of these rules.
We also endeavor to provide timely and appropriate
disclosure and information concerning product recalls on
our website.
In fiscal 2022, there were no quality accidents that had
any significant impact on the assets of our customers.
■ Prevention of violation of laws and regulations
We assess the status of compliance with laws andregulations related to our products through design
inspections and verification by engineering departments,
as well as checks of validity by quality satisfaction
departments.

■ Quality education
In order to effectively operate our QMS, the IWATSU
Group plans and executes education and awarenessraising activities for quality month.
Status of implementation in fiscal 2022
Name of education or awareness-raising
activity

Number ofparticipants (people)

New employee training (overview of QMS)

18

Quality month training (human error
considered from the perspective of themechanism of human behavior)

59

Advance education for internal audits65

New internal auditor development education

35

QKM e-learning*3 provided by the CIAJ QMS
Committee

14■ Customer satisfaction surveys by sales departments
Each sales department in IWATSU Electric gathers
information on the views and desires of customers andsales agents regarding IWATSU products and services,and reflects them in its business activities. The company
uses analysis of these views, etc., to improve theperformance of products, quality, and level of service.
*1. Implemented as an integrated audit together with the EMS*2. Implemented as an integrated report together with the EMS© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

■ External inspections
Once a year, the IWATSU Group receives an external
inspection of the conformity and effectiveness of our QMS
from a certification body. We correct or rectify any nonconforming items within a predetermined period. Eachdepartment addresses opportunities for improvement, andthe status of their response is confirmed in internal audits.

■ Initiatives targeting quality improvements
The Quality Satisfaction Dept. of the head office of
IWATSU Electric leads efforts to reduce product defects
and enhance process quality, in coordination with plantquality departments and manufacturing departments.
Senior management receives direct reports on the statusof market quality and process quality at regular meetings of
the Quality Committee, as part of efforts to appropriately
share information and respond promptly.

*3. An ISO 9001 and quality management-related e-learning service provided by the QMS
Committee of the Communications and Information Network Association of Japan (CIAJ)

61

Contents

Sustainability Management

Environment

Society

GovernanceAppendixCommunity Contribution Activities
Each and every member of the IWATSU Group promotes
coexistence and communication with local communities byactively engaging in regional and social contribution activities
as a good corporate citizen.

Kugayama Firefly Festival

Suginami Charity Walk

■ Examples of IWATSU Electric activities(Suginami-ku, Tokyo)
IWATSU Electric engages proactively in community-based
activities mainly in Suginami-ku, where the head office islocated.

■ Leave system for volunteer activities
IWATSU Electric has established a multi-purpose leavesystem for public volunteer activities and ones related to thedevelopment of the next generation, including activities atschools and ones in local communities, thus supporting
employees' volunteer activities.

IWATSU Electric supports
the management of thisevent as a member of thecommunity. On the day of
the Firefly Festival, we offera part of the company's
parking area as a bicycleparking space.
During the Kugayama
Firefly Festival held in Juneevery year, the Tamagawa
Josui waterway adjacent to
the head office of IWATSU
Electric is used as a venue
for watching fireflies.
Kugayama is a bustling placewith approx. 30,000 visitors
over the period of the festival.

Suginami Charity Walk is a charity event held by the
local government, residents and companies who are cosponsoring partners under the slogan, "Tanoshiku Aruite
Volunteer (enjoy walking for volunteers)." A participation
fee collected from participants is used to subsidize
activities supporting volunteer groups and NPOs
committed to the sound development of children.
As a member of the executive committee, IWATSU
Electric participates in the planning of the event and the
management of it on the day.
*A meeting to plan the event in November 2023 (planned date).

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

• Participation in regional bodies
Takaido Police Relations Society, Takaido Police Safe
Driving Managers Association, Ogikubo Hazardous
Materials and Disaster Prevention Association, Ogikubo
Fire Prevention Society, etc.
• Installation of temperature monitoring system for COVID-19
vaccine freezers in community vaccination centers under
the jurisdiction of Suginami City Office• Provision of emergency materials support sites for disasters(Suginami-ku disaster support plan)• Sponsor of Suginami Charity Walk
• Support for Kugayama Firefly Festival• Cooperation in the annual festival of Kugayama Inari Shrine• Cooperation in an event held at a neighboring childcare
facility.
• Support for spring / fall nationwide traffic safety campaigns,
etc.

62

Contents

Sustainability Management

Environment

Society

GovernanceAppendixCommunity Contribution Activities
Event at a neighboring childcare facility

Nationwide traffic safety campaigns

Annual autumn festival of Kugayama Inari Shrine

During the nationwide traffic safety campaign, we engage in traffic safety
activities at the crossroads in front of Kugayama Station.

For the annual autumn
festival of Kugayama
Inari Shrine, we offer
sweets to be distributed
to children who
participate in the festival.
In 2022, this festival washeld after a three-year
hiatus and it attracted alarge number of local
children.

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

At the Halloween event at a neighboring childcare facility, costumed
employees help distribute sweets to children.

63

Contents

Sustainability Management

Environment

Society

GovernanceAppendixCommunity Contribution Activities■ Example Group company activities

Participation in Taimatsu Akashi

Flower-planting activities

The Sukagawa and Izumizaki Business Sites of Iwatsu
Manufacturing(Sukagawa-shi and Izumizaki-mura, Nishi Shirakawa-gun,
Fukushima)

Participation in the Tsuburaya Memorial Marathon

In fiscal 2022, we participated in this event after a three-year hiatus.
Eight people from Iwatsu Manufacturing, including employee family
members, and four people from IWATSU Electric participated in theevent as runners. We cheered for the runners on the sidelines.

Taimatsu Akashi, which isone of the three major fire
festivals in Japan, is a
traditional event that has
been held for more than 430
years in Sukagawa-shi,
Fukushima.
A total of 50 people from
Iwatsu Manufacturing, which
has its business site in thecity, participated in theprocesses of cutting
bamboo (September),collecting thatch (October),creating torches (November),and installing the torches(the day before the event)and they also participatedon the day of the event.

Beautification activities© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

• Participation in regional bodies
Sukagawa Zone & Shirakawa Zone Police Supporters
Association, Sukagawa Regional Fire Fighting and Disaster
Prevention Society, Sukagawa Business Association for
Safe Driving Management, Shirakawa Zone Fire Fighting
Management and Liaison Council, etc.
• Participation in Taimatsu Akashi (one of the three great fire
festivals of Japan)• Participation in the Tsuburaya Memorial Marathon• Flower-planting and beautification activities around plants• Eco cap activities• Support for blood donations in the workplace

Thirty-one participants cleaned the area around the business site.

64

Contents

Sustainability Management

Environment

Society

GovernanceAppendixCommunity Contribution Activities■ Example Group company activities
Tochigi Business Site, IWATSU Chemical Cross (Shimotsuke-shi, Tochigi)

Tohtsu Industry (Hachioji-shi, Tokyo)• Participation in Tochigi prefectural citizens' environmental beautification activities• Co-sponsoring the Hachioji Matsuri

We engaged in beautification activities, such as cleaning up
the area around the plant, as activities for cleaning up thearea around the Tochigi Business Site.

The Hachioji Matsuri is the largest festival in thecity of Hachioji. Tohtsu Industry, which has its
head office in the city, co-sponsored the Hachioji
Matsuri by making hand-held fans using recycled
paper.

Front© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Back

65

Contents

4

Environment

Society

GovernanceAppendix

Go vern an ce Strengthening and promotion of governance Highly transparent and credible external disclosure of information© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Creation of governancesystems that are highly
transparent andcredible for enhancing
corporate value

Sustainability Management

66

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Corporate Governance System■ Basic policy
The IWATSU Group has set a basic policy on corporate
governance of ensuring transparency and incorporating adiverse range of opinions and wide-ranging knowledge, inorder to enhance corporate value, achieve unending
development, and ensure co-prosperity with stakeholders.

General Meeting of Shareholders
Appointment/Dismissal

Appointment/Dismissal

Appointment/
Dismissal
Accounting audit

Board of Directors

Audit & Supervisory Committee

Accounting Auditor
OpinionSelection/Dismissal

Remuneration and Nomination
Advisory Committee
Reportingandcooperation

ReportAppointment/
Dismissal

President &Representative Director
Chief Executive Officer

Consultation

Executive Board

Command

Officers Responsible

Executive Officer
CommandCompliance
Promotion
Department

Risk Management
Promotion
Department

Internal Audits

Risk Management Committee
Guidance

Executive Departments and Subsidiaries© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

■ Governance system
As a company with an audit and supervisory committee,
IWATSU Electric has established a General Meeting of
Shareholders, Board of Directors, Audit & Supervisory
Committee, and Financial Auditor, as well as the Senior
Executives Meeting, Risk Management Committee, andRemuneration and Nomination Advisory Committee. The
Company has also introduced an executive officer system,with the intention of separating executive and supervisory
roles.
In relation to decision-making and the execution ofbusiness operations, the Board of Directors engages incorrect and efficient decision-making andsupervision/monitoring, by electing Outside Directors toincorporate a third-party standpoint, and utilizing the executive
officer system. The Company has also strengthened control
functions, through coordination between the Audit &Supervisory Committee, whose members include Outside
Audit & Supervisory Committee Members, and the Financial
Auditor, to ensure an appropriate monitoring system. The
Company has adopted the current system because thesemeasures ensure that management monitoring functions are
sufficiently objective and neutral.

Organization Chart

Corporate Governance Reporthttps://www.iwatsu.co.jp/ir/cg/

67

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Internal Controls and Risk Management
Overview of Activities

At IWATSU Group, we believe that internal controls
contribute to enhancing the efficiency and effectiveness ofmanagement and protecting and increasing assets, byensuring compliance with laws, regulations, etc., related toour business activities and an awareness of ideals andethics in our actions. As a result, we believe that internal
controls also serve as the foundation for relationships oftrust with investors and other stakeholders.
Based on this belief, the Group has establishedprocesses for decision-making and business execution thatmaintain an awareness of promoting compliance and risk
management. The Board of Directors also regularly
confirms the effectiveness of these processes and theoperational status of our internal control systems. Goingforward, we will continue strengthening our initiatives on acompany-wide and ongoing basis.

■ Promotion of compliance
The IWATSU Group recognizes that it is only possible
for a company to maintain ceaseless development byappropriately increasing profit amid fair competition. Basedon this understanding, we prioritize compliance with laws
and regulations, standards, and rules, as well as
consistently considering our social and moral responsibility
in our actions, as “compliance.”

Operational status of the internal control system in relation tofinanceIn fiscal 2022 again, we assessed the status by concurrently
using remote audits through an online conferencing system, etc. inconsideration of the status of community spread of COVID-19. As
a result, there were no matters classed as “material deficiencies
that require disclosure.” The final results of the assessment werereported in the “Report on Internal Controls” in June 2023.

■ Development of internal reporting (whistleblowing)
systemEnsuring compliance is a precondition for ourcontinuation as a company. Accordingly, it is essential that
we have a system for timely communication to senior
management and prompt rectification in the event of any
possibility of a violation in laws, regulations, etc. The
IWATSU Group works to spread awareness of and operate
our internal reporting (whistleblowing) system, which wehave established in the “IWATSU Group Internal Reporting
Management and Operating Regulations.”■ Operation of Risk Management Committee
IWATSU Electric considers all possible obstructions to
the IWATSU Group's achievement of its objectives and all
possible causes of material losses, including natural
disasters, accidents, changes in the external environment,
and misconduct, as risks and performs risk management
so that such risks will not be overlooked.
Specifically, the Risk Management Committee of
IWATSU Electric identifies risks exhaustively, assesses
them to select those to address intensively, and has built a
process of confirming and evaluating how the risks are
addressed.
This committee is chaired by the officer responsible forrisk management, and its members consist of the
President & Chief Executive Officer, full-time Directors, fulltime Audit & Supervisory Committee Members, andExecutive Officers.
Fiscal 2022 Main items discussed by the Risk Management
Committee
 Review of risk calculation method and risks
 Matters related to internal controls (internal control audit plans,internal control audit progress status, and internal control
reports, etc.)
 BCM drills
 Findings in ISO 9001/14001 inspections
 Appropriate management of industrial waste© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Basic Approach

68

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Information Security Management
ISMS Promotion System

IWATSU Electric contributes to the progress anddevelopment of society as a solutions vendor offering
hardware and software and providing operational support
for systems, primarily in the business communication
systems business.
Reliability related to information security is important forcontinuing to contribute to society through businessactivities.
Based on this belief, we have formulated an Information
Security Policy, established an information security
management system (ISMS), and will operate, monitor,
maintain, and improve ISMS to foster a culture of attachingimportance to information security.

The ISMS Promotion Committee takes the lead in
operating IWATSU Electric’s information security
management system.
Every year, the ISMS administrative office of thiscommittee coordinates with the Personal Information
Protection administrative office of IWATSU Electric toperform internal audits and management reviews of thepersonal information protection management system(PMS) and the ISMS, as part of measures to address
information security.
Information security management system promotion organization
chart
President
Head of Internal
Audit

Information Security Policy
https://www.iwatsu.co.jp/isms/

Internal Audit Team
(internal auditors)

ISMS Promotion Committee
Group companies with information security management system
certification■ System for management through the Computer
Security Incident Response TeamThe IWATSU Group has set up the Computer Security
Incident Response Team (CSIRT), believing that
information security management of the overall Group,
including non-ISMS-certified Group companies, isimportant.
To strengthen information security management acrossthe Group as a whole, we receive analyses of security
information from external institutions, work to raiseawareness internally, share information about information
security incidents, and respond to such incidents.
■ Social media management systems
IWATSU Electric has developed “Guidelines for the Useof Social Media” as basic etiquette that applies when usingsocial media in business operations, and we use theseguidelines as a set of rules for operating social media.

Head of Information Security
Management

Company name

Certification body / number

Department to which
certification applies

Head of Information Systems Operations

IWATSU ElectricCo., Ltd.

JIC Quality Assurance Ltd. /1296

Cloud Solution Sales
Dept., Information
Systems Dept.

ISMS administrative office
ISMS Head of Education

IWATSU SYSTEM& SOFTWARE
CO., LTD.

JIC Quality Assurance Ltd. /1286

groxi Inc.*

J-VAC Co., Ltd. IM0033

Operations
Department

ISMS Promotion
Committee

Head of Departmental Information Security(Director)© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Basic Approach*As a result of share transfer, groxi Inc. was excluded from consolidated subsidiaries of IWATSU
Electric Co., Ltd. in June 2023.

69

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Information Security Management
Overview of Activities (IWATSU Electric Departments Subject to the ISMS)■ Internal audits
IWATSU Electric performs internal ISMS audits once ayear. In addition to checking the status of achievement of
information security objectives and conformity with related
laws and regulations, these audits also check matters suchas whether or not the ISMS is being operated inaccordance with the ISMS Manual and management
regulations.
[Implementation time] June to August 2022
[Results] No major non-conforming items[Implementation time] November 2022 (renewal inspection)[Certification body] JIC Quality Assurance Ltd.
[Results] Non-conforming items: 1;
opportunities for improvement: 20■ Response to information security incidents
IWATSU Electric manages information security incidents
by classifying them into three levels from the viewpoints of
their severity and level of impact.
We also identify small incidents proactively and takeappropriate actions in our efforts to minimize their impact.
We also use case examples of actual incidents in ourinternal training, so as to improve the level of our
information security.
■ Checks of the status of compliance with laws,
regulations, etc.
We perform regular checks for amendments to laws andregulations, and reflect the results in our ISMS activities
and make revisions as necessary, in order to prevent any
violations to our legal, regulatory, or contractual obligations
or violations of requirements from a security perspective.

■ Security training and drills
In order to effectively operate our ISMS, we plan andprovide employee training and drills related to information
security, including response to ransomware that has beencausing increasingly serious damage in recent years.
We also have a system in place that enables teleworking
employees to participate through e-learning.
Status of implementation in fiscal 2022
Number of participants(people)Name of training or drill
General ISMS training(increase awareness of security)

62

Security training(cybersecurity
countermeasures)• 831 (September 2022)• 811 (February 2023)

Promotion committee andinternal auditor training

1

Trainings for persons
responsible for information
systems

6

Targeted attack email drills*• 1,064 (June 2022)• 1,094 (January 2023)

ISMS business continuity andemergency drills

63*Conducted twice a year for IWATSU Group employees© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

■ External inspections
Once a year, IWATSU Electric receives an external
inspection of the conformity and effectiveness of the ISMS
from a certification body. We correct or rectify any nonconforming items within a predetermined period. Eachdepartment considers ways to respond to opportunities for
improvement, and they are confirmed in internal audits.

■ Management review
Once a year, the ISMS administrative office and the
Personal Information Protection administrative office of
IWATSU Electric coordinate to perform management
reviews of IWATSU Electric’s PMS and ISMS. In fiscal
2022, we conducted a management review in November,and senior management received reports on matters suchas the operational status of these systems, including theresults of internal audits, the status of compliance withlaws and regulations, and points for improvement.

70

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Personal Information Protection Management
PMS Promotion System

At the IWATSU Group, we view the protection of
personal information as one of the important basic
matters in business activities, and at the same time, as oneof the human rights risks involved in businesses. We
understand that addressing such risks is our importantsocial responsibility.
Based on this understanding, four Group companies
including IWATSU Electric have adopted a Personal
Information Protection Policy, established a personal
information protection management system (PMS), andtake measures to protect personal information.

The administrative office established under the Personal
Information Protection Management Committee takes thelead in operating IWATSU Electric’s PMS. This team plans
and implements revisions to regulations concerning theprotection of personal information, directions concerning
operational inspections for departments, internal audits,external inspections, trainings for the Company as a whole
and responsible employees, etc.

Personal Information Protection Policy
https://www.iwatsu.co.jp/security/

Personal information protection management system promotion
organization chart
President
Head of Personal Information
Protection Audits
Management Committee for
the Protection of Personal
Information

Department

Manager Responsible for
the Protection of Personal
Information

External
Advisors, etc.
(If necessary)

Secretariat• Head of Personal
Information
Consultation Desk

Director(If necessary)

Person Responsible
for Departmental
Personal Information
Person Responsible
for Departmental
Personal Information

Department• Head of Personal
Information
Protection Education

Head of Information
Systems
Management

Audit Team

Person Responsible
for Departmental
Personal Information
Person Responsible
for Departmental
Personal Information

Department

Person Responsible
for Departmental
Personal Information
Person Responsible
for Departmental
Personal Information■ PrivacyMark implementation
Four companies in the IWATSU Group have acquired
and implement the PrivacyMark. IWATSU Electric andthree other companies take steps to share information andcoordinate activities related to personal information.
Companies in the IWATSU Group that have not acquired
the PrivacyMark engage in business activities inaccordance with the Act on the Protection of Personal
Information and other related laws and regulations. These
companies also receive information on activities fromcompanies within the Group that have acquired thePrivacyMark, as part of efforts to enhance the level of ourcompetency in this area across the IWATSU Group as awhole.
Status of PrivacyMark acquisition
Company name

Certification body

Registration
numberIWATSU Electric Co., Ltd.

Japan Data
Communications
Association

21000556

IWATSU SYSTEM &SOFTWARE CO., LTD.

Japan Information
Technology Services
Industry Association

11820489

IWATSU NETWORKSOLUTION CO., LTD.

Japan Data
Communications
Association

21000561

IWATSU Business
Services Co., Ltd.

Japan Data
Communications
Association

21004785© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

Basic Approach71

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Personal Information Protection Management
Overview of Activities■ Internal audits
IWATSU Electric performs internal PMS audits once ayear.*1 In addition to checking the status of the protectionof personal information and conformity with related laws
and regulations, these audits also check matters such as
the status of compliance and implementation of PMSrelated regulations.
[Implementation time] June to August 2022
[Results] No major non-conforming items■ External inspections
Once every two years, IWATSU Electric receives arenewal inspection of the conformity and effectiveness of
our PMS from a certification body.
In fiscal 2022, we received an external inspection in
September. We corrected and rectified non-conforming
items pointed out in the inspection, and in November 2022,
it was decided that we will remain certified.
■ Management review
Once a year, the Personal Information Protection
administrative office and the ISMS administrative office of
IWATSU Electric coordinate to perform management
reviews of the PMS and ISMS. In fiscal 2022, we
conducted a management review in November, and senior
management received reports on matters such as theoperational status of these systems, including the results ofinternal audits, the status of compliance with laws andregulations, and points for improvement.

First company-wide PMS
training in 1H

IWATSU Electric■ Incident management
IWATSU Electric manages any incidents that occur,
surveys the possibility of personal information leaks, andworks to prevent recurrence. Between fiscal 2018 andfiscal 2022, there were losses of digital devices, etc., but
the devices, etc., were quickly discovered in all cases, andthere were no leaks of information.
In March 2023, an incident involving unauthorizedaccess to an internet service from another company, which
is used by IWATSU Electric, was revealed. In response,
we reported it to the Personal Information Protection
Commission and took corrective action.
As of September 2023, no report about personal
information leaks related to this incident has been
submitted from customers or trading partners of IWATSU
Electric.

Second company-wide
PMS training in 2H

IWATSU Electric

Status of occurrence of incidents

Company-wide PMS
training in April

All Group members

Fiscalyear

Details of incidents (number of incidents)

Company-wide PMS
training in AugustGroup companies
only*2

2022

Company-wide PMS
training in January

Loss of smartphone (one incident), unauthorized accessto an internet service from another company, which isused by IWATSU Electric (one incident)

All Group members

2021

Loss of laptop computer (one incident)*3

Company-wide PMS
training in March

Group companies
only*22020

Loss of smartphone (two incidents), loss of business card
holder (one incident), loss of laptop computer (oneincident)

2019

Loss of smartphone (three incidents), loss of employee ID
and insurance card (one incident)

2018

Loss of smartphone (two incidents), loss of business card
holder (one incident)

Status of implementation in fiscal 2021
Classification

Regular

AlternatemonthsName of training

Target*2. The content overlaps with IWATSU Electric’s regular training, so this training is only for “Group
companies.”© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

*1. Implemented as an integrated audit together with the ISMS

■ Education
Once every six months, IWATSU Electric provides
regular education concerning all aspects of the PMS for all
employees, including senior management. We also
promote the appropriate protection of personal information
through monthly company-wide education.
We also take steps to increase awareness of theprotection of personal information among new employees,
mid-career hires, and persons seconded from business
partners, as part of initial training and acceptanceeducation after joining the IWATSU Group.

*3. One incident, which occurred in fiscal 2021, was missing, so a correction has been made.

72

Contents

Sustainability Management

Environment

Society

GovernanceAppendixBusiness Continuity Planning (BCP)
Basic Approach

Crisis Taskforce System

Details of Activities

At the IWATSU Group, we believe it important to
respond to a crisis threatening civil life or corporate
activities by continuing business as much as possible while
engaging in activities to aid affected people and contributeto local communities, and if business has been
discontinued, to strive to resume it as soon as possible andsupply products and services stably.
Based on this belief, IWATSU Electric has built a system
for responding to crises and risks promptly, appropriately,
and in a cross-sectoral manner to be able to continue
business. We have also developed internal regulations
related to business continuity.

Where a crisis has occurred or is likely to occur, the
IWATSU Group sets up a Crisis Taskforce as necessary
and focuses on ensuring business continuity.

In fiscal 2022, we performed emergency response drills
based on the scenario of an earthquake directly
underneath Tokyo.

Role of the Crisis Taskforce
1.To collect information on the relevant crisis.
2.To make decisions concerning policies for responding to thecrisis, etc.
3.To convene stakeholders and hold meetings to discusscountermeasures, as necessary.

5.To take other necessary actions to respond to the crisis.

Flow of training

Examples of expected crises and risks
 Natural disasters
 Major infectious diseases

Establishment of Crisis Taskforce
Structure of the Crisis TaskforceRole Large-scale man-made disasters
 Danger to employees’ lives
 Human rights violations in the supply chain

MemberControl of the taskforce anddirection/supervision oftaskforce members

President

Deputy General
Manager

Assistant and deputy for the
General Manager

All officers with special titles

GeneralManager of theadministrative
officeControl of administrative
matters of the taskforce

Officer responsible for theManagement Division

Members of thetaskforce

Collection of information,
implementation ofcountermeasures, andspreading of knowledge
among stakeholders

Officers and employees of
the Company or Group
companies nominated by
the General Manager

GeneralManager Major damage to customers and related institutions
 Harm by antisocial forces Hostile purchases of the Company’s shares External leaks of important or personal information
 Damage from ransomware or targeted email attacks
 Major violations of laws and regulations
 Major occupational injuries

Crisis Taskforce Meeting/BCP Activation

Convening of Disaster Headquarters Liaison Committee /Understanding the Status of Damage

Work in accordance with Emergency Response Manual

Post-training© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

4.To provide information to public administration and trading
partners.

[Implementation time] November 2022
[Subject] All IWATSU Group companies[Scenario] An earthquake with a seismic intensity of just over 6
Shutdown of information systems within the Group
Percentage of employees who can come into work at
30%, etc.

Self-evaluation/task extraction/countermeasures (for eachdepartment)

73

Contents

5

Sustainability Management

Environment

Society

GovernanceAppendix

A p p en d ix

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

74

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Appendix: GRI Standards Content Index■ GRI Sustainability Reporting Standards Index
This report was created with reference to the GRI Sustainability Reporting Standards and contains the following disclosed information.
ID

Reporting Requirements

Refer toID

Reporting Requirements

Refer toGeneral Disclosures

4. Strategy, policies and practices

GRI2: General Disclosures 2021

2-22Statement on sustainable development strategy

2、5～6、8

1. Organization and its sustainability reporting practices

2-23

Policy commitments

44、59

2-1

Organizational details

78

2-24

Embedding policy commitments

9、11、45～47、59

2-2

Entities included in the organization's sustainability reporting

4

2-25

Processes to remediate negative impacts

47

2-3

Reporting period, frequency and contact point

4、79

2-26

Mechanisms for seeking advice and raising concerns

44、68

2-4

Restatements of information

18、26、37、72

2-27

Compliance with laws and regulations

28、38

2-5

External assurance

-

2-28

Membership associations

10

2. Activities and workers

5. Stakeholder engagement

Activities, value chain and other business relationships

11、78

2-29

Approach to stakeholder engagement

10

2-7

Employees

49～50

2-30

Collective bargaining agreements

47

2-8

Workers who are not employees

50

GRI3: Material topics 2021

3. Governance
2-9

Governance structure and composition

9、25、60、67、69、71、
73

2-10

Nomination and selection of the highest governance body

67

2-11

Chair of the highest governance body

9、67

2-12

Role of the highest governance body in overseeing the management of impacts

9

2-13

Delegation of responsibility for managing impacts

9

2-14

Role of the highest governance body in sustainability reporting

9

2-15

Conflicts of interest

67

2-16

Communication of critical concerns

9、16、67～68

2-17

Collective knowledge of highest governance body

2-18
2-19

3-1

Process to determine material topics

12

3-2

List of material topics

12

3-3

Management of material topics

13～15

Standards by topic 200: Economic
GRI 201: Economic Performance 2016
201-1

Direct economic value generated and distributed

Report on the 114th Annual
Securities Report, etc.

201-2

Financial implications and other risks and opportunities due to climate change

17

201-3

Defined benefit plan obligations and other retirement plans

Report on the 114th Annual
Securities Report, etc.

-

201-4

Financial assistance received from government

Report on the 114th Annual
Securities Report, etc.

Evaluation of the performance of the highest governance body67

GRI 202: Market Presence 2016

Remuneration policies

Report on the 114th Annual
Securities Report, etc.

202-1

Ratios of standard entry level wage by gender compared to local minimum wage

-

202-2

Proportion of senior management hired from the local community

-

2-20

Process to determine remuneration

Report on the 114th Annual
Securities Report, etc.

2-21

Annual compensation ratio

Report on the 114th Annual
Securities Report, etc.

GRI 203: Indirect Economic Impacts 2016
203-1

Infrastructure investments and services supported

19～23

203-2

Significant indirect economic impacts

19～23© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

2-6

75

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Appendix: GRI Standards Content Index
ID

Reporting Requirements

Refer toGRI 204: Procurement Practices 2016
204-1

Proportion of spending on local suppliers-

GRI 205: Anti-corruption 2016
205-1

Operations assessed for risks related to corruption

68

205-2

Communication and training on anti-corruption policies and procedures.

68

205-3

Confirmed incidents of corruption and actions taken-

GRI 206: Anticompetitive Behavior 2016
206-1

Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

ID

Reporting Requirements

Refer toGRI 304: Biodiversity 2016
304-1

Operational sites owned, leased, managed in, or adjacent to, protected areas and areasof high biodiversity value outside protected areas

-

304-2

Significant impacts of activities, products, and services on biodiversity

29、37、40304-3

Habitats protected or restored

-

304-4

IUCN Red List species and national conservation list species with habitats in areas
affected by operations-

GRI 305: Emissions 2016-

GRI 207: Tax 2019305-1

Direct (Scope 1) GHG emissions

18、26～27、31～32

305-2

Indirect (Scope 2) GHG emissions

18、26～27、31～32

Approach to tax

-

305-3

Other indirect (Scope 3) GHG emissions

18、26、31～32

207-2

Tax governance, control, and risk management

-

305-4

GHG emissions intensity

26、33

207-3

Stakeholder engagement and management of concerns related to tax

-

305-5

Reduction of GHG emissions

18、30、33～34

207-4Country-by-country reporting

-

305-6

Emissions of ozone-depleting substances (ODS)-

Standards by topic 300: Environmental

305-7

Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions

38

GRI 301: Materials 2016

GRI 306: Waste 2020

301-1

Materials used by weight or volume

27

306-1

Waste generation and significant waste-related impacts

20～21、40～41

301-2

Recycled input materials used

-

306-2

Management of significant waste-related impacts

29、41～42

301-3

Reclaimed products and their packaging materials

-

306-3

Waste generated

26～27、42306-4

Waste diverted from disposal

26～27、42

Waste directed to disposal

27、42

GRI 302: Energy 2016
302-1

Energy consumption within the organization

26～27、35～36

306-5

302-2

Energy consumption outside of the organization-

GRI 308: Supplier Environmental Assessment 2016

302-3

Energy intensity

-

308-1

New suppliers that were screened using environmental criteria

-

302-4

Reduction of energy consumption

35～36

308-2

Negative environmental impacts in the supply chain and actions taken

59

302-5

Reductions in energy requirements of products and services

29Standards by topic 400: Social

GRI 303: Water and Effluents 2018

GRI 401: Management Approach Disclosures 2016

303-1

Interactions with water as a shared resource

27、39

303-2

Management of water discharge-related impacts

39

303-3

Water withdrawal

26～27、39

303-4

Drainage

26～27、39

303-5

Water consumption

39

401-1

New employee hires and employee turnover

-

401-2

Benefits provided to full-time employees that are not provided to temporary or part-time
employees

-

401-3

Parental Leave

54© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

207-1

76

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Appendix: GRI Standards Content Index
ID

Reporting Requirements

Refer toGRI 402: Labor/ Management Relations 2016
402-1

Minimum notice periods regarding operational changes

ID

Reporting Requirements

Refer toGRI 411: Rights of Indigenous Peoples 2016-

GRI 403: Occupational Health and Safety 2018

411-1

Incidents of violations involving rights of indigenous peoples-

GRI 413: Local Communities 2016413-1

Operations with local community engagement, impact assessments, and development
programs

62～65

413-2

Operations with significant actual and potential negative impacts on local communities

-

403-1

Occupational health and safety management system

53、56

403-2

Hazard identification, risk assessment, and incident investigation

55、57～58

403-3

Occupational health services

54、57～58

403-4

Worker participation, consultation, and communication on occupational health and safety

56

403-5

Worker training on occupational health and safety

57～58

403-6

Promotion of worker health

53～54

403-7

Prevention and mitigation of occupational health and safety impacts directly linked bybusiness relationships

58

403-8

Workers covered by an occupational health and safety management system-

GRI 416: Customer Health and Safety 2016

403-9

Work-related injuries

55、58

416-1

Assessment of the health and safety impacts of product and service categories

61

403-10Work-related ill health

58

416-2

Incidents of non-compliance concerning the health and safety impacts of products andservices

61

404-1

Average hours of training per year per employee

51

404-2

Programs for upgrading employee skills and transition assistance programs

51～52

404-3

Percentage of employees receiving regular performance and career development reviews -GRI 405: Diversity and Equal Opportunity 2016405-1

Diversity of governance bodies and employees

48～50

405-2

Ratio of basic salary and remuneration of women to men

49

GRI 406: Non-discrimination 2016406-1

Incidents of discrimination and corrective actions taken

47、59

GRI 407: Freedom of Association and Collective Bargaining 2016
407-1

Operations and suppliers in which the right to freedom of association and collective
bargaining may be at risk

47、59

GRI 408: Child Labor 2016
408-1

Operations and suppliers at significant risk for incidents of child labor

47、59

GRI 409: Forced or Compulsory Labor 2016409-1

Operations and suppliers at significant risk for incidents of forced or compulsory labor

47、59

414-1

New suppliers that were screened using social criteria

59

414-2

Negative social impacts in the supply chain and actions taken

59

GRI 415: Public Policy 2016
415-1

Political contributions-

GRI 417: Marketing and Labeling 2016
417-1

Requirements for product and service information and labeling

29、37、61417-2

Incidents of non-compliance concerning product and service information and labeling

-

417-3

Incidents of non-compliance concerning marketing communications-

GRI 418: Customer Privacy 2016
418-1

Substantiated complaints concerning breaches of customer privacy and losses ofcustomer data

70、72

© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

GRI 404: Training and Education 2016

GRI 414: Supplier Social Assessment 2016

GRI 410: Security 2016
410-1

Security personnel trained in human rights policies or procedures-

77

Contents

Sustainability Management

Environment

Society

GovernanceAppendix

Corporate Profile
Company nameEnglish nameIWATSU ELECTRIC CO., LTD.

■ IWATSU Group's businesses

Consolidated

IWATSU Electric Co., Ltd.

Business
communicati
on systems
business

Representative
Shogo Kimura
Director and President
Established

August 14, 1938

Headquarters

1-7-41 Kugayama, Suginami-ku, Tokyo, 168-8501
Japan• Development, manufacture, sale, and provision ofBusiness description

services in areas related to business
communication systems, printing systems, andtest and measurement equipment

Share Capital

6.0 billion yen

Net sales

22.9 billion yen (consolidated, FY2022)

Number of employees

Non-consolidated: 410／Consolidated: 1,220*As of March 31, 2023

Group Companies

Real
Property
Business• IWATSU SYSTEM & SOFTWARE CO., LTD.
• IWATSU Business Services Co., Ltd.
• Tohtsu Industry Co., Ltd.
• IWATSU Chemical Cross Co., Ltd.
*All shares in groxi Inc. were transferred to ELECOM Co., Ltd. on June 30, 2023, and all shares in
Iwatsu (Malaysia) Sdn Bhd were transferred to Silitech Technology Corporation in September 2023.

billion yen

Test andmeasurement
equipment
business

Printing
systemsbusiness

1.4%
14.4%
12.3%

71.9%

22.3

billion yen

1.7%

Consolidated

21.7

billion yen

1.8%

14.1%

11.8%

10.5%

8.0%

73.7%

78.4%

Consolidated

Consolidated

billion yen

billion yen

23.2

2.0%

22.9

2.4%

12.7%

13.9%

8.0%

6.7%

77.3%

77.0%
■ Information andCommunications Business■ Printing Systems Business■ Test and Measurement
Equipment Business■ Real Property Business

2018

2019

2020

2021

2022

Fiscal year

IWATSU Group's Main Business LinesBusiness
communication
systems businessBusiness phones, PBX, on-premise personal handy-phone systems, smartphone-linked solutions, paging systems, telephones, network-related
equipment, contact center solutions, CRM solutions, system operation and monitoring services, data center services, data analysis
solutions, security solutions, asset management solutions, BCP solutions, wireless authentication systems, emergency notification systems, LED
light dimmer systems, energy management systems, solar power generation monitoring systems, remote systems for monitoring remaining amount,online communication tools, and factory IoT solutions

Printing systems
business

Digital platemakers, business card cutters, label printers, inkjet printers, mailing-related equipment, relevant consumables, and sterilizing andsanitizing products• Iwatsu Manufacturing Co., Ltd.
• IWATSU NETWORK SOLUTION CO., LTD.
• Dentsu Service Co., Ltd.

20.8

Consolidated

Test and measurement
equipment business

Digital oscilloscopes, various probes, digital multimeters, universal counters, signal generators, training kits, thermal conductivity measuring
devices, positioning and displacement meters, non-contact displacement meters, non-contact thickness meters, radiation dose monitors, isolation
systems, semiconductor curve tracers, high-voltage CV measurement systems, devices for measuring magnetic material properties, patterngenerators, power analyzers, frequency response and impedance analyzers, amplifiers, aerospace equipment systems, electronic components(connectors, switches, and harnesses), and infrared thermography

Real Property Business

Real estate rental and other businesses© 2023 IW ATSU ELECTRIC CO., LTD. All Rights Reserved.

• Real estate rental and other businesses

Trend in net sale78

IWATSU ELECTRIC CO., LTD.
1-7-41 Kugayama, Suginami-ku, Tokyo, 168-8501 Japan
Corporate Planning Department

sustainability@iwatsu.co.jp