Value Creation Story

Business Overview

ESG Activities

Corporate Information

ESG Activities
The KOITO Groupʼs basic management policy is tocreate customer needs and contribute to theprogress of society, while also fostering mutually
beneﬁcial relationships with all stakeholders,
including shareholders, customers, employees
and business partners, all guided by thetheme of “Light.”

Environmental Activities
Environmental Management

38

Compliance with Environmental Laws and Regulations

41

Reduction of Greenhouse Gas Emissions

42

Reduction of Environmental Impact Substances

44

Resource Conservation and Recycling

45

External Evaluation on Our Environmental Activities

46

Disclosures according to the recommendations of the
Task Force on Climate-related Financial Disclosures (TCFD)

47

Social Activities

48

Activities to Improve Safety and Security

48

Quality and Product Safety49

Supply Chain Management50

Human Resource Management

51

Respect for Human Rights

52

Social Contribution Activities

53

Stakeholder Engagement

53

Governance

36

38

54

Corporate Governance

54

Compliance60

Risk Management

62

Information Security

63Intellectual Property Management

64

Tax Policy

65

Executive Management

66

KOITO INTEGRATED REPORT 2022

KOITO INTEGRATED REPORT 2022 37

Value Creation Story

Environmental Activities

Business Overview

ESG Activities

Establishment of Environmental Management System

The KOITO Group declares in the KOITO Group Corporate Behavior Charter, our basic policy of the corporate activities, that
“guided by the theme of ʼEco-friendly Manufacturing for People and the Earth,ʼ we will proactively engage in global
environment conservation through our business activities.”
Based on this policy, KOITO has established an Environmental Policy that sets out the framework for its environmental
activities and implements that policy in the environmental management of all ﬁelds: development, design, production,
procurement, logistics and others.
Moreover, our domestic and overseas subsidiaries also have established “Environmental Policy” as well as built
environmental management systems. We are promoting environmental conservation activities throughout the KOITO Group.

The KOITO Group is building the environmental management system for the entire Group. We are aggressively acquiring
ISO 14001 and other environmental certiﬁcates primarily at our manufacturing sites. As of the end of March 2022, a totalof 24 companies out of 25 eligible for certiﬁcation have acquired environmental certiﬁcates: 12 in Japan, including KOITO
MANUFACTURING, and 12 overseas. The KOITO Group also recommends major suppliers to acquire certiﬁcates, such as
ISO 14001 and Eco-Action 21, in order to reinforce environmental management and conservation throughout the entire
supply chain.
■KOITOʼs ISO 14001 certiﬁcation in
production sites
Site
Shizuoka Plant

Environmental Policy

Koito Parts Center
Haibara Plant

KOITO MANUFACTURING CO., LTD. pursues “Eco-friendly Manufacturing for People and the Earth” in all businessactivities centered on automotive lighting by promoting environmental conservation activities;
１. To clarify our targets and measures for environmental conservation and continuously work to improve the
KOITO Groupʼs environmental performance,
2. To formulate and promote environmental improvement plans by considering environmental issues in advance inaddition to complying with environmental laws and regulations,
3. To strive to develop and establish new environmentally friendly technologies and products throughout the product life cycle,
4. To minimize the environmental impact and use of resources and energy in the manufacturing process, promote
environmental protection activities and prevent environmental problems from occurring,
5. To actively promote human resources development to achieve our environmental targets.

Sagara Plant

Year-month of
The latest
initial registration renewal dates■Environmental certiﬁcation acquired in the KOITO Group
Domestic subsidiaries

January 2000
January 2021

July 2000

ISO14001

Fujikawa Tooling Plant January 2003
Scope of Environmental Management:
KOITOʼs environmental management is applied tothe above ﬁve sites with respect to businessactivities related to the R&D, design, production,
logistics, etc. of automotive lighting equipment,
aircraft components and others. In addition,
environmental impact arising from the productlife cycle are also applied to the management.

Overseas subsidiaries
KOITO KYUSHU

North American Lighting (U.S.A.)

AoitecNorth American Lighting Mexico (Mexico)

Shizuokadenso

NAL do Brasil (Brazil)

Nissei Industries

Koito Europe (U.K.)

Fujieda Auto Lighting

Koito Czech (Czech Republic)

Shizuoka Wire Harness
KOITO ELECTRIC INDUSTRIES

Eco-Action 21
Green Management Certiﬁcate

ISO14001

FUZHOU KOITO TAYIH (China)

Shizuoka Kanagata

THAI KOITO (Thailand)

Takeda Suntech

INDONESIA KOITO (Indonesia)

Koito Transport

Ta Yih Industrial (Taiwan)
INDIA JAPAN LIGHTING (India)

Environmental Targets and Performance

Environmental
objectives

Priority efforts and performance in FY 2022
TargetResultReduction of CO 2 fromproduction

Amount of CO 2 emissions: 16%
reduction from FY 2014
(amount of CO 2 emissions
61,900 t-CO 2)

Amount of CO 2 emissions: 23%
reduction from FY 2014
(amount of CO 2 emissions
56,700 t-CO 2)

Reduction of CO 2 fromlogistics

Energy usage per unit:
1% reduction per year

2% increase from FY 2021

Waste generated per unit:
3% reduction from FY 201913% reduction from FY 2019

Development ofrecycle-oriented
society

Reduction of theamount of waste

Reduction of water
consumption

Water usage per unit:
3% reduction from FY 20199% reduction from FY 2019

Reduction ofenvironmental Reduction of VOCemissions
impactsubstances

VOC emissions:Less than the amount in
FY 2019 (299 t)
Target for FY 2022: 247 tonsor less

Measures to alleviate
climate change

Priority

Resource and water
circulation

KOITO convenes the monthly Safe and Environmental Committee chaired by the Representative Director to supervise
environmental activities of the entire Group and to discuss and make decisions on important environmental issues andenvironmental conservation measures to be implemented under environmental laws and regulations.
Subcommittees and working groups, such as the Energy and CO2 Reduction Subcommittee, Environmental Impact Substance
Reduction Working Group, and Recycle Promotion Working Group, which were established to address speciﬁc environmental issues,
are implementing speciﬁc activities.
These activities are reported to the Safe and Environmental Committee, which follows up on progress and discussing various actions.

Contribution
to low-carbon
society

Safe and Environmental Committee
Oversees environmental-related committees and decides the direction on measures regarding signiﬁcant environmental issues

Energy and CO2 Reduction Subcommittee
Environmental Impact Substance Reduction Working Group
Recycle Promotion Working Group
Plant Emissions Reduction Working Group
Water Conservation Subcommittee
Environmental Conservation Committee at each plant

38

KOITO INTEGRATED REPORT 2022

(Secretariat) Safety andEnvironment Department and
CN Promotion Group,
Production Control Department

Enrichment of environmental management

The Board of Directors

Determines, discusses, and implements
Streamlines and improves environmental
environmental conservation countermeasuresmanagement and audit systems
based on environmental laws and regulations

Hubei Koito (China)

Haibara Machine and Tools

Management andreduction ofchemical substances

Management Structure for Environmental Activities

Environmental Audit
Committee

GUANGZHOU KOITO (China)

To implement “Eco-friendly Manufacturing for People and the Earth” and promote environmental conservation activities
effectively, KOITO has set quantitative medium-term targets and short-term targets every year for various indicators. The
progress of activities is managed and the degree of achievement of targets is evaluated by the Safe and Environmental
Committee and other bodies.

Environmental Management

Environmental Conservation
Committee

Corporate Information

Promotion of thereinforcement ofconsolidated
environment activities

Reinforcement of environmental
risk management
Thorough environment
compliance

Promotion ofenvironmental efforts
collaborating with
suppliers

Promotion of aggressive
environmental activities,
improvement of environmental
performance

Identiﬁcation of potential environmental
risks and reinforcement of preventive
measures (Identiﬁcation of and responseto near miss incidents)
Conﬁrmation of management
status and promotion of
improvement through information
sharing and on-site inspections

Global disclosure ofenvironmental information
Promotion of mutual understanding
with local communities

Disclosure of consolidated
information Hosting round-tablesession with local communities

Promoting compliance,
employee education andawareness-raising activities

Reevaluation of education structure
for manager, supervisor and newly
hired employees Implementing
training for contractors working in
the premises

Reinforcementof global
Disclosure of environmental
environmental information and enhancement
activities
of communication
Reinforcement ofenvironmental education
Developmentof society inharmony
with nature

192 tons(36% reduction from FY 2019)

Promotion of activities at
Promotion of biodiversity
individual ofﬁces and regions,and nature conservation
and biodiversity conservation
activities
activities

Cooperation with local organizations
and participation in activities with them
Reinforcement of activities to prevent global
warming and effectively use resources

Main approaches from FY 2022
①Reduction of energy use and CO 2
emissions in production･Amount of CO 2 emissions in FY 2031: 50%
reduction from FY 2014
･Achieve carbon neutrality by FY 2051
②Reduction of energy use and CO 2
emissions in logistics･Energy usage per unit: 1% reduction per year
③Reduction of environmental impact substances in
the product life cycle①Development of recycle-oriented society･Reduction of amount of waste and effective
utilization of resources in production
Waste generated per unit in FY 2026:
7% reduction from FY 2019
②Minimization of water impact･Reduction of water consumption
Water usage per unit in FY 2026:
7% reduction from FY 2019
･Improvement of wastewater quality management①Reduction of environmental impact
substances in production･Amount of VOC emissions: Maintain theamount below FY 2019 (299 tons)②Thorough management of environmental
impact substances in products①Reinforcement of the worldwide
environmental management･Promotion of the reinforcement ofconsolidated management･Promotion of environmental activities
with business partners (suppliers)･Proactive disclosure of environmental
information and enrichment ofcommunication･Reinforcement of environmental education②Development of society in harmony withnature･Promotion of biodiversity and nature
conservation activities

KOITO INTEGRATED REPORT 2022 39

Value Creation Story

ESG Activities

Corporate Information

Material Balance

Environmental Education

Energy and resource inputs and emissions (outputs) of greenhouse gas (GHG) and environmental impact substancessuch as VOC (Volatile Organic Compounds) in KOITOʼs business activities are as follows.
KOITO keeps track of the material balance in its business activities to verify and evaluate activities to reduce theenvironmental load and to use the data for the establishment of future measures.

KOITO has established an education system and periodically provides environmental education to promote training forhuman resources to achieve our environmental targets as stated in the Environmental Policy and help every employee gaina deep understanding of the environment.
In addition to education for speciﬁc job ranks, such as new employees, managers and supervisors, KOITO provides special
education for internal auditors and promote our employeesʼ acquisition of ofﬁcial licenses and qualiﬁcations. Moreover,June and July of every year are designated as KOITO Environmental Months during which employees participate in local
clean-up activities and implement intensive environmental inspection to enhance the awareness of every employee.
KOITO also provides education on preventing contamination and spillage to workers on the premises of KOITO, such as
contractors, to enhance their awareness and prevent environmental accidents.

Results (FY 2022)

Inputs

Outputs

Raw materials

Products･Electricity:
107,732,000 kWh･Utility gas:
1,902,000 m3･LPG: 2,897 tons
･Heavy oil: 0 kl

Parts modiﬁcation(resin molding, coating
and deposition)

Assembly

Emissions into theatmosphere･CO2: 56,700 tons
･Chemical substances that
require notiﬁcation under the
PRTR Act: 69.9 tons

■ Safety and environmental education for the work conducted within
the premises (2021)･VOC (Volatile Organic Compounds):
192 tons

Efforts throughout Supply Chain

Emissions into waters
Product packaging
Recycling

再原料化･Resin materials: 359 tons
樹脂材：457 t

Water･Municipal water:
182,000 tons
･Industrial water:
472,000 tons

･Wastewater: 142,000 tons
(discharged amount into
the sewer and wastewater
treatment facilities)

Emissions･Thermal use and recycling
in outside the company:
4,935 tons(including waste: 2,297 tons)･PRTR Act chemical substances:
5.9 tons*PRTR Act: Act to promote identiﬁcation and management of speciﬁc
chemical substancesʼ released amount to the exterior environment.

Environmental Audits
KOITO conducts annual external environmental audits and internal environmental audits to check the operational statusof the environmental management system. Improvement proposals are prepared and implemented to respond to the
aspects identiﬁed through those audits to maintain and operate the proper management system.

●External Environmental Audits
A registered external accreditation ﬁrm checks whether the environmental management system has been properly established andoperated based on ISO 14001.

●Internal Environmental Audits
To ensure the independence of internal environmental audits, an audit team composed of internal auditors other than thedepartment being audited is organized, and audits are conducted based on ISO 14001. The internal auditors are also
conducting audits at their departments for continuous improvements and enhance environmental awareness.

KOITO INTEGRATED REPORT 2022

KOITO is committed to promote measures to reduce
environmental load based on the comprehensive perspectiveof the product life cycle to coexist with global environment
and local communities and to engage in environmental
activities through all business activities, including green
procurement of raw materials, parts and equipments.
Aiming to materialize a sustainable society, KOITO is
working to strengthen supply chain management. We holdannual procurement policy brieﬁng session and monthly
information liaison meetings for suppliers to encouragethem to acquire environmental certiﬁcations, such as ISO
14001 and Eco-Action 21, and request compliance withenvironmental laws and regulations on environmentallyhazardous substances.
In FY 2022, KOITO held a supplier meeting on May 17,
2021 and 204 suppliers attended it.

■ Education for internal environmental auditors (2019)■ Procurement policy brieﬁng session (2019)

Compliance with Environmental Laws and Regulations
KOITO conducts thorough risk management, suchas specifying the sources of environmental risks,
detecting abnormalities in the early stages throughregular measurements, and establishing emergency
response measures to minimize environmental risks
by complying with environmental laws andregulations, such as ones to prevent air pollution,water contamination and soil contamination.
Through these risk management activities,
KOITO makes sure that emissions, water quality,
noise, soil and groundwater contamination arewithin the ranges permitted under laws, regulations
and standards. In FY 2022, neither violations ofenvironmental laws and regulations nor ﬁnes werereported at the KOITO Group.
The KOITO Group is committed to compliancewith environmental laws and regulations, andcontinue to work on environmental risk
management.

■Environmental risk management to comply with environmental laws and regulations
Risk management

Risk avoidance and removal

EnergyManufacturing

Prevention of
expanding risks･Resin materials:
43,807 tons
･Organic solvent andpaints: 747 tons
･PRTR Act* chemical
substances: 244 tons

40

Business Overview

Prevention ofenvironmental
pollution

Early
detection ofabnormality

Emergency
response

Procedures
Identiﬁcation ofsources・Identiﬁcation of facilities and equipment
which may cause environmental pollution
in case of malfunction

Source management

・Scheduled inspection and repairing risk
identiﬁed facilities or equipment
・Elimination of environmental near missincidents and prevention of recurrence

Settingself-management
standards

・Setting self-management standards thatare stricter than legal regulations

Daily inspection(monitoring andmeasurement)

・Management within the self-management
standards (implement preventive measures
before the standards exceed legal regulations)

Setting emergency
response procedures・Setting the abnormality handling procedures・Setting procedures to notify nearby residents
and public agencies

Implementation oftraining to handle
abnormality

・Implementation of periodic training

KOITO INTEGRATED REPORT 2022 41

Value Creation Story

Business Overview

ESG Activities

Corporate Information

Reduction of Greenhouse Gas Emissions
In order to contribute to materialize a decarbonized society, KOITO is promoting the introduction of plant buildings andenergy-saving manufacturing facilities that emit less CO2 with the goal of achieving carbon neutrality in FY 2051.
Furthermore, we are working company-wide to reduce CO2 emissions throughout the product life cycle, promoting
productsʼ power conservation, size reduction and weight reduction from the development and design phase.

Efforts in the Production Process
To improve energy and production efﬁciency in the
production process, KOITO is reducing CO2 emissions
by improving work methods and updating facilities,
such as updating to higher-efﬁciency transformers andair conditioners, installing energy-efﬁcient facilities,
automatic power shutdown systems to kick in whenfacilities are not in use, and optimizing productionlines.
We are promoting several activities with the goal of
reducing CO2 emissions by 50% from FY 2014 by FY
2031 and achieving carbon neutrality by FY 2051.
Factories in Japan were streamlined by integratingproduction lines and conducting improvement workthat resulted in improved productivity and energy
efﬁciency. With this effort, the amount of KOITOʼs CO2
emissions in FY 2022 was 56.7 thousand tons, 23%
decrease from FY 2014.

Environmental Activities in Overseas Subsidiaries●Reducing CO2 Emissions by Introducing Renewable Energy / India Japan Lighting Private Limited (IJL/India)
IJL reduced annual CO 2 emissions by 13% through installing solar panels at the Bawal Plant and purchasing
renewable energy, including wind and solar power, at the Chennai Plant.

■Amount of CO2 emissions*
Amount of emissions(thousand tons of CO 2)
80

73.8

72.7

70.8

69.0
59.8

60

56.7

40

36.9

Wind power■ Solar panels at Bawal Plant

20
0

2014

2018

2019

2020

2021

2022

2031 (FY)(Target)Solar power

Chennai Plant■ Purchasing renewable energy at Chennai Plant●Reducing Electricity Consumption by Using LEDs / THAI KOITO COMPANY LIMITED (THAI KOITO/Thailand)*The amount of CO2 emissions are calculated by using CO2 emission factor of each electric powercompany for electricity, and using the factors based on the Act on Rationalizing Energy Use andthe Act on Promotion of Global Warming Countermeasures for city gas, LPG and heavy oil.

THAI KOITO has promoted the use of LEDs instead of metal halide lamps, which were conventionally used for on-site
passageway lighting. As a result, they have achieved to reduce annual electric power consumption of on-site passageway
lighting by 66%.

■Amount of CO2 emissions and energy usage per unit in logistics■ Plant lighting

Please refer to the Growth Strategies from P.20 toP.21 of this report.

Efforts in Logistics
The logistics of KOITO are mainly conducted by freighttrucks. A domestic subsidiary, Koito Transport, ismainly carrying out the logistics operations.
Koito Transport acquired the Green Business
Certiﬁcate in February 2004. Collaborating with
KOITO, Koito Transport aims to operateenvironmentally friendly transport business by
reducing environmental impacts focusing on reducing
the energy consumption of freight trucks, CO2
emissions, and waste emitted through the logistics
process.
In FY 2022, the amount of CO2 emissions from theentire logistics operation of KOITO was 12,300 tons
and energy per unit* was 0.157 kl per billion yen.

Amount of emissions(thousand tons of CO 2)

Amount of CO 2 emissions
Energy usage per unit*

Emissions intensity(kl per billion yen)

20

15

0.2
0.148

0.144

0.148

13.4

13.9

14.0

10

0.154

12.8

0.157

12.3

■ Metal halide lamp

●Reducing Water and Gas Consumption through Intermittent Operation of Boiler Facilities /North American Lighting Mexico (NAL Mexico/Mexico)
The four boilers at NAL Mexicoʼs production plants were operated in a manner that shifts to high combustion conditions
at high loads and to low combustion conditions at low loads, and was resulted in energy loss.

0.146

With the aim of reducing energy consumption, NAL Mexico switched the operation to intermittent operation control,in which the boiler can automatically stops according to the operating rate. They have achieved reducing annual water
0.1

consumption by 8% and annual gas consumption by 18%.
■Boiler system diagram

5■Boiler operation status (before improvement)

2018

2019

2020

2021

2022

0

2026
(FY)
(Target)No.1*Energy usage per unit: Amount of energy (kl in crude oil equivalent) consumed in logistics per unit in sales (billion yen).

No.2
Plant

No.3

No.4
Boiler room

42

KOITO INTEGRATED REPORT 2022

Operating ratio 20%

Operating ratio 40%

No.1

Low combustion

High combustion High combustion High combustion High combustion

No.2

Low combustion

Low combustion

High combustion High combustion High combustion

No.3

Low combustion

Low combustion

Low combustion

High combustion High combustion

No.4

Low combustion

Low combustion

Low combustion

Low combustion

Boiler0■ LED lighting■Boiler operation status(after improvement)

Operating ratio 60%

Operating ratio 80%

Operating ratio 100%

High combustion

After introducing a control systemthat can automatically stops the boiler

Operating ratio 20%

Operating ratio 40%

Operating ratio 60%

Operating ratio 80%

Operating ratio 100%No.1

Low combustion

Low combustion

High combustion High combustion High combustion

No.2

Non-operation

Low combustion

Low combustion

High combustion High combustion

No.3

Non-operation

Non-operation

Low combustion

Low combustion

High combustion

No.4

Non-operation

Non-operation

Non-operation

Non-operation

Low combustion

KOITO INTEGRATED REPORT 2022 43

Value Creation Story

Business Overview

ESG Activities

Corporate Information

Reduction of Environmental Impact Substances

Resource Conservation and Recycling

To reduce environmental impact substances and waste, KOITO commits in its Environmental Policy to strive to “develop
and establish new environmentally friendly technologies and products throughout the product life cycle” and “minimize
the environmental impact and use of resources and energy in the manufacturing process,” and promoting relevant
activities.
KOITO has set quantitative reduction targets for VOC emissions in the midterm priority activities. Activities are being
implemented to reduce emissions while checking progress.
We will continue to actively engage in reducing environmental impact substances by promoting “Eco-friendly
Manufacturing for People and the Earth.”Throughout our product life cycle, KOITO is actively working to effectively use raw materials, energy and otherresources, and to reduce water consumption and waste.
The KOITO Group will continue to actively promote “Eco-friendly Manufacturing for People and the Earth,” and strives
to materialize a recycle-oriented society.

Effective Use of Water Resources

Efforts in Production Processes
Some raw materials, such as paints and chemicals, as well as secondary materials used in the production processes,
contain chemical substances that have negative environmental impacts. KOITO is reducing these environmental impact
substances by reinforcing the management of the amount to use and emit, improving consumption efﬁciency, and using
alternative substances.

●Management of Chemical Substances Regulated
under the PRTR Act■Amount of released and transferred chemical substances
regulated under the PRTR Act in FY 2022

KOITO is keeping track of the amount of chemical
substances regulated under the PRTR Act handled ortransferred in the production processes while managing
them appropriately as well as reducing the amount to use
and replacing them with alternative substances.
In FY 2022, KOITO have handled six substances subject
to PRTR Act (Class 1 designated chemical substances),
including toluene and styrene. The amount of thesesubstances handled was 244.0 tons, and the amount of
atmospheric emissions and transfers as waste was 75.8
tons.

Amount of
atmosphericemissions

69.9
tons

Amount transferred
as wasteAmount handled

244.0 tons

5.9 tons

Discharge
into waters

0 tons■Amount of water consumption and water usage per unit
Amount of water
consumption(thousand tons)

Amount of water consumption

Usage per unit

Recognizing the importance of water resources in(tons per million yen)
Water usage per unit
production activities and the risks that future economic
878
900
5.0
837
growth, population growth, and climate change would have780
800
effect on water resources, KOITO has identiﬁed
4.0
672
700
654
4.12
“conservation of water resources” as one of our materiality.
3.76
600
3.58
3.41
KOITO is working on the effective use of water resources and
3.0
3.26
500
protecting water quality.
400
2.0
We have set our target for water consumption per unit of300
production*, to reduce 7% from the amount in FY 2019 (3.51200
1.0
tons per million yen) by FY 2026, and we are promoting
100
activities aimed at further reductions.
0
0.0
2018
2019
2020
2021
2022
We have worked to enhance the awareness of employees(FY)
toward water conservation and improving the efﬁciency ofwater consumption in the production processes. As a result,■Amount of wastewater and wastewater per unit
the water usage per unit in FY 2022 was 9% lower and theAmount of
Wastewater per unit
wastewateramount of water consumption was 22% lower than FY 2019.
Amount of wastewater(tons per million yen)
KOITO is also conducting water quality monitoring on the (thousand tons)
Wastewater per unit
250
2.0wastewater discharged from production sites to prevent
221
207
water pollution in rivers or other bodies of water into which
200
200
production sites wastewater is discharged.
1.5
163●Reduction of VOC (Volatile Organic Compounds)■Amount of VOC emissions and VOC emissions per unit

As a target for FY 2026, KOITO is working to maintain
Amount of
VOC emissions below 299 tons, the amount in FY 2019, a emissions (tons)
400
base year, and to further reduce emissions per unit*1.
In FY 2022, VOC emissions were reduced by 36%
307
compared to FY 2019. In addition, we have achieved 13%
300
reduction in emissions per unit compared to FY 2019.
13.6
In addition, KOITO has not used the three major
200
hazardous air pollutants*2 since we had eliminated its use
in March 2003.

Amount of emissions
Emissions per unit

299
13.9

272
12.8

Emissions per unit
(kg per million yen)
20

*Water usage per unit: The amount of water consumption (tons) per production
output (million yen)

100

220

12.1
192

10

2022

(FY)

0.97

1.00

1.0
0.92

0.79

0.75

2021

2022

50
0

12.9

142

150

2018

2019

2020

0.5

0.0

(FY)

100
*1 VOC emissions per unit: The amount of VOC emissions (kg) per production
in monetary amount (million yen)
*2 Hazardous air pollutants: Dichloromethane, trichloroethylene andtetrachloroethylene

44

KOITO INTEGRATED REPORT 2022

0

2018

2019

2020

2021

0

KOITO INTEGRATED REPORT 2022 45

Value Creation Story

Efforts in Reducing Wastes and Recycling
KOITO is working on efﬁcient recycling of materials (including waste, valuable materials and recycled materials)
discharged from all plants. After achieving zero-waste* in all plants in 2002, KOITO has been promoting waste reduction
by setting the waste generated per unit as an index for recycling, mainly of plastics, and for efﬁcient use of resources in
production.
*Zero-waste: A situation in which no waste is directly disposed of as landﬁll within the waste discharged by the plant.

●Efforts to Reduce the Amount of Waste from
Production Sites and the Waste Generated per Unit
KOITO generated 5,293 tons of waste from plants in FY
2022, among which 2,297 tons were processed aswaste*1.
KOITO is promoting activities with the aim of further
reducing waste per unit*2 by 7% from the unit in FY 2019(0.128 tons per billion yen), a base year, as a target by FY
2026.
The waste generated per unit (the amount of waste per
production output) was 0.120 tons per billion yen in FY
2022, which was 34% lower than FY 2019 due to thecontinuous efforts to reduce the loss of defective resins.
*1 Waste: Generated material that requires processing costs, and theprocessing is outsourced to disposal businesses contractors*2 Waste generated per unit: The amount of waste (tons) per production
output (million yen)■Amount of emissions and waste (per unit)
from production sites
Amount of emissions
and waste (tons)
8,000
6,000
4,000

7.314
6,934
0.138

2,949

Waste generated per unit
(tons per billion yen)Amount of emissions
Amount of waste
Waste generated per unit
6,946
0.137

3,055

0.2

2019

0.133
2,909

5,544
0.117

KOITO is working to improve the recycling rate
(reduction of heat-utilizing waste, etc.). In FY 2022, theamount recycled was 4,985 tons, maintaining a recycling
rate of over 90%.

Amid the increasingly severe impacts of climate change around the world, the Financial Stability Board established TCFD in
December 2015 in response to a request from the G20.In June 2017, TCFD issued TCFD Recommendations, which requirecompanies and others to disclose information on the risks and opportunities that climate change may have on their company
based on four themes.
In December 2021, KOITO has signed up to support the TCFD and isactively promoting activities to reduce CO 2 emissions and disclose
related information in order to materialize carbon neutrality in FY 2051.
We will continue to analyze the risks and opportunities that climatechange may pose to us and identify their impacts, and will work tofurther enhance information disclosures.
■Items Recommended for Disclosure by TCFD and KOITOʼs Compliance

5,293
0.120
0.1

2,407

Recommended Disclosures
Governance

2,297

2020

2021

2022

0

(FY)

■Amount of waste discharged at plants (FY 2022)●Promotion of recyclingb)Managementʼs role in assessing and managing
climate-related risks and opportunities

Recycling(material recycling)
4,626 tons
Heat utilization(thermal recycling)
309 tons

External Evaluation on Our Environmental Activities
KOITO evaluates its own initiatives by identifying key domestic and overseas external indicators and evaluations, andanalyzing the results. We are actively disclosing information by responding to external evaluations, including ESG(Environmental, Social and Governance) rating agencies.
In January 2022, the CDP Climate Change Report 2021, a survey of global companies on
their strategies for climate change and speciﬁc greenhouse gas emissions, was publishedby the U.K. nonproﬁt organization CDP (formerly known as the Carbon Disclosure
Project).
KOITO received a “B-(Management)” rating in recognition of its efforts to address
climate change, such as reducing CO2 emissions and setting medium- to long-term targets,
as well as its disclosures.

The KOITO Group identiﬁes materiality including “prevention of global warming”
through discussions at the Board of Directors and promotes business activities that
contribute to materialize a sustainable society.
KOITO convenes the monthly Safe and Environmental Committee chaired by the
Representative Director to supervise environmental activities of the entire Groupand to discuss and make decisions on important environmental issues andenvironmental conservation measures to be implemented under environmental
laws and regulations. Subcommittees and working groups, such as the Energy and
CO 2 Reduction Subcommittee, Environmental Impact Substance Reduction
Working Group, and Recycle Promotion Working Group, which were established toaddress speciﬁc environmental issues, are implementing speciﬁc activities.
These activities are reported to the Safe and Environmental Committee, which
follows up on progress and discussing various actions.

a)The climate-related risks and opportunities theorganization has identiﬁed over the short,medium, and long termb)The impact of climate-related risks andopportunities on the organizationʼs businesses,
strategy, and ﬁnancial planningWe will analyze and disclose the risks and opportunities that climate change may
have on KOITO in the future based on climate-related scenarios and other factors.

c)The resilience of the organizationʼs strategy, taking
into consideration different climate-related
scenarios, including a 2 C or lower scenario

Risk Managementa)The organizationʼs processes for identifying andassessing climate-related risksb)The organizationʼs processes for managing
climate-related risksc)How processes for identifying, assessing, andmanaging climate-related risks are integrated into
the organizationʼs overall risk management

Metrics and Targetsa)The metrics used by the organization to assessclimate-related risks and opportunities in line with
its strategy and risk management processb)Scope 1, Scope 2, and, if appropriate, Scope 3
greenhouse gas (GHG) emissions, and the related risksc)The targets used by the organization to manage
climate-related risks and opportunities andperformance against targets

KOITO INTEGRATED REPORT 2022

Compliance

Strateg yIn-house recycling(material recycling)
359 tons
Waste from outside
the company

46

Corporate Information

Disclosures According to the Recommendations of the Task Forceon Climate-related Financial Disclosures (TCFD)a)The boardʼs oversight of climate-related risks andopportunities
2018

ESG Activities

6,651

2,000
0

Business Overview

Departments are assigned to risk management, including the implementation of
measures to reduce and avoid risks and daily management. The Quality Assurance
Department is assigned risks associated with the safety of products, theProcurement Headquarters handles risks in the supply chain, and the Safety
Environment Department handles risks of natural disasters. As such, eachdepartment assess relevant risks and implement preventive measures. Ofﬁcers ofassigned responsible departments act as the general managers. In addition, training
on individual risks is provided to employees.
If risks become actual problems, the basic protocol is to report the incidents to
the Board of Directors, the highest decision-making entity of the businessadministration, and such problems are swiftly and properly handled under the
direction of the top administrators.
【Target for FY 2031】･CO 2 emissions (Scope 1+2): 36,900 tons (50% decrease from FY 2014)【Monitoring metrics】･Scope 1 (direct) and Scope 2 (indirect) CO 2 emissions【Result for FY 2022】･Scope 1 CO 2 emissions: 12,900 tons
･Scope 2 CO 2 emissions: 43,700 tons
We are currently in the process of calculating Scope 3 CO 2 emissions.

KOITO INTEGRATED REPORT 2022 47

Value Creation Story

Social Activities

Development of Technologies and Products Contribute to Improve Safety and Security●LED Headlamps■Evolution of light sources

KOITO has been developing high-output andhigh-performance light sources to create headlamps thatprovide brighter light to greater distances for safenighttime driving.
LED headlamps are KOITOʼs main products. They help
drivers to gain clear night views as they are bright, turn on
instantly and are close to daylight. KOITO is also
developing laser headlamps to further improve distancevisibility.

Luminous ﬂux (lm)
10 4

Gas discharge
bulb

LED

Halogen bulb

10 3

Semi-sealed
beam

Sealed beam

Incandescent bulb

10 2
10 1
10 0

Acetylene
gas lamp
Kerosene
lamp

Candle●Adaptive Driving Beam (ADB)

Semi-sealed beam
headlamp

1900

Sealed beam
headlamp

Halogenheadlamp

1940

1960

1920

Gas discharge
headlamp

1980

LED headlamp

2000

2020 (CY)■Image of ADB photometry

48

KOITO INTEGRATED REPORT 2022

The KOITO Group declares in the KOITO Group Corporate Behavior Charter that “we will gain customersʼ satisfaction andtrust through developing and providing safe and high-quality products and services,” and identiﬁed “enhancement of
product quality” as one of our materiality. We strive to create products with a customer-ﬁrst attitude to maintain andfurther improve quality of all products and services we provide to our customers.
The KOITO Group is utilizing its Quality Management System (QMS) to maintain and supervise the quality level in all
kinds of departments, from development to production.
We will continue quality assurance activities to meet the situations in various countries or regions and will keep
contributing to materialize a sustainable society through maintenance and improvement of the product quality.

Quality Management Structure
KOITO has established a quality management system
based on ISO 9001 and IATF 16949 which areinternational standards to ensure seamless operations.
Internal Quality Audits with the Quality AssuranceManager as the chair are conducted at least once a year
to make decisions on the quality management aspects
and to monitor the quality management status of theentire KOITO Group.
The progress of these activities is reported to theBoard of Directors and the Managing Committee byDirector or Corporate Ofﬁcer who are in charge of
Quality Assurance Department to reinforce themanagement system through monitoring by the
management. KOITO is building a system to ﬁnd thecauses of any defects found and implement prevention
measures in case any defects are found through quality
tests and evaluations.

■Quality Management System

The KOITO Group
Customer-ﬁrst Production
KOITO
MANUFACTURING

The Board of Directors /Managing Committee
ReportDirection
Requests,
comments

Quality Assurance Department
Quality audit

Quality meeting

Prevention of recurrence

Quality monitoring

System reinforcement

Quality improvement activity

Production
sites

Engineering
Headquarters

Overseas Subsidiaries

Procurement
Headquarters

Management
Divisions

High-quality
products andservices

Domestic Subsidiaries

High-beam lighting range

Acquisition of Quality Management System Certiﬁcates
The table on the right is a list of Group companies,
including overseas subsidiaries, that have acquired
ISO 9001 or IATF 16949.
All the subsidiaries and departments of KOITO willcontinue to carry out a thorough PDCA cycle, andensure product safety and quality throughenhancement of the quality management system.

Please refer to the Growth Strategies from P.18
to P.19 of this report.

The number of trafﬁc accident deaths in Japan is about
3,000 per year. Among them, fatal accidents occur mostfrequently at dusk, from 17 to 19 oʼclock, and in particular,“vehicle-to-pedestrian” accidents occur two to four times
larger than those in daytime. It can be inferred that
deterioration of driversʼ visibility can be one of the causes
for trafﬁc accidents with pedestrians. In addition, ananalysis of “vehicle-to-pedestrian” fatal accidents
occurrence shows that a considerable number of accidents
were likely to have been avoided if the driver had utilized
high beam.
High beam, which allows drivers to detect pedestrians
from a greater distance, is effective in preventing trafﬁc
accidents in dark driving conditions.

Corporate Information

Customers

The KOITO Groupʼs basic management policy is to create customer needs and contribute to the progress of society,guided by the theme of “Light.” Identifying “reduction of trafﬁc accidents” as one of our materiality, the KOITO Groupdevelops products which contribute to materialize a safe and secured automotive society under our corporate message“Lighting for Your Safety.”
To further improve the performance of LED headlamps and ADBs, we are also promoting R&D activities on Advanced
Driving Assistance System (ADAS), next-generation lamps and various sensors (LiDAR, cameras, etc.) which arecompatible with autonomous driving.
The KOITO Group will continue to contribute to the improvement of safety and security in an automotive society
through developing and supplying safe and high-quality products and services using our technologies.

High Beam Contributes to
Reduce Accident Mortality

ESG Activities

Quality and Product Safety

Activities to Improve Safety and Security

KOITO has developed a headlamp system called Adaptive
Driving Beam (ADB) that automatically controls the light
distribution pattern of the high beam and ensures wide
front visibility for drivers by enabling driving with highbeams all the time while preventing preceding or
oncoming vehicles from glare.
In addition, KOITO is conducting R&D activities on ADB
to further improve safety during nighttime driving by
providing ﬁner light distribution.

Business Overview■Number of “vehicle-to-pedestrian” death accidents bytime period (2015‒2019 cumulative)
Daytime(excluding dusk)

Nighttime

153

AoitecNorth American Lighting Mexico (Mexico)

Shizuokadenso

Koito Europe (U.K.)

Nissei Industries

Koito Czech (Czech Republic)

Fujieda Auto Lighting

GUANGZHOU KOITO (China)

Shizuoka Wire Harness

Hubei Koito (China)

KOITO ELECTRIC INDUSTRIESFUZHOU KOITO TAYIH (China)
THAI KOITO (Thailand)
INDONESIA KOITO (Indonesia)
Ta Yih Industrial (Taiwan)
INDIA JAPAN LIGHTING (India)

295.2
595

(Cases) 0

100

200

300

400

500

600

■Probability of collision avoidance by high beam

126

（56%）

IATF 16949
North American Lighting (U.S.A.)

Approx. 4 times

Dusk

99

ISO 9001
KOITO KYUSHUApprox. 2 times(excluding dusk)（44%）■Environmental certiﬁcation acquired in the KOITO Group■Accidents that are likely to havebeen avoided■Accidents with a low probabilityof collision avoidance
225 (cases) in total*Prepared based on the National Police Agencyʼs “Prevention of Nighttime
Pedestrians Accidents through the Advanced Use of High Beam”
https://www.npa.go.jp/bureau/trafﬁc/anzen/highbeam.html

Efforts in Quality Improvement
KOITO provides job rank-based quality education for new employees,
managers and supervisors. In addition, KOITO holds training session on SQC(Statistical Quality Control) for design and development engineers to improvetheir knowledge on quality management.
Furthermore, the QC circle activities and improvement presentation sessions(FQC Meeting, Staff QC Meeting and others) are being held periodically to
improve quality management activities.
KOITO will continue to enrich activities on training and education to further
improve quality management.

■ Staff QC Meeting (2019)

KOITO INTEGRATED REPORT 2022 49

Value Creation Story

Business Overview

ESG Activities

Supply Chain Management

Human Resource Management

KOITO believes that it is important to fulﬁll its social responsibility throughout the entire supply chain to practice“Eco-friendly Manufacturing for People and the Earth” through all business activities. Therefore, we have established theProcurement Policy to respond to social demands and expectations and deliver high quality service to our customers
while cooperating with suppliers.
KOITO is also presenting expectations on the cost, quality and the elimination of industrial accidents to each supplier toachieve goals together.
For Procurement Policy, please refer to our Supply Chain
We are aiming to materialize a sustainable societyManagement website.
throughout the entire supply chain while cherishing theclose relationship with our suppliers.
URL: https://www.koito.co.jp/english/csr/social/supplychain.html

KOITO has identiﬁed “human resource development,” “healthy and safe working environment,” “workstyle reform” and“protection of human rights” as part of our materiality. With the keywords of “communication and collaboration,” KOITO
encourages every employee to share their knowledge, experience, ﬁndings and problem awareness through various
means to build energetic worksites where every member can work on tackling problems.
Please refer to the Human Resource Strategy from P.24 to P.25 of this repor t.

Personnel Data

Initiatives to Strengthen Cooperation with Business Partners and Promote Co-existence and Co-prosperity
In March 2022, KOITO formulated and announced its Declaration of Partnership Building
to strengthen collaboration with our business partners and promote mutual prosperity, as
well as to contribute to sustainable growth of the society throughout the supply chain.
The following individual items are clearly indicated as KOITOʼs initiatives in the declaration.

(KOITO MANUFACTURING)FY 2019

Total workforce●We will Strengthen collaboration with other companies to accelerate open
innovation in order to respond to the transformation of automobiles and mobility.
●We will promote information sharing and digitization using IT to improve operational efﬁciency with related
business partners.

Reinforcement of CSR in the Supply Chain
KOITO holds annual Procurement Policy Brieﬁng Session
and monthly Supplier Information Liaison Meetings andother opportunities to help our suppliers understand our CSR
initiatives. We are also providing consultation as necessary.
At the Procurement Policy Brieﬁng Session, we share policies
on sales, technology, production, quality and other matters,
and also ask our suppliers to thoroughly comply with laws
and regulations. We have established a system for suppliers
so that they can inform us and promote compliance in theevent of their violating the law.
In addition, we encourage our suppliers to actively acquire
environmental certiﬁcation, and check the status ofcertiﬁcation every year. In FY 2022, approximately 430
suppliers were eligible for the survey. During ﬁre and disasterprevention inspections to our suppliers, KOITO also conﬁrms［KOITOʼs CSR activities］①Measures based on the “Guideline for the Right Transactionof Automobile Industry”②Continuous investigation on the inclusion of environmental
impact substances③Continuous annual investigation on conﬂict minerals④Thorough compliance with laws and regulations
concerning human rights and labor⑤Thorough implementation of compliance issues in general(Concluding contracts to eliminate anti-social forces, etc.)

Regularrecruitment

the management system or the amount of organic solventsused by suppliers. In the event that there is a problem with
suppliersʼ management system or others, we request them tosubmit an improvement plan and supporting their measures.
As for suppliers who conduct business with the KOITO
Group, we ask them to implement environmental and social
measures to materialize a sustainable supply chain.
In addition, we are conﬁrming some of our suppliersʼ
implementation status of overall CSR activities, including
quality, human rights, environment, compliance and others.

［ Environmental requests ］

・Acquire external environmental certiﬁcations such as ISO
14001 and Eco-Action 21
・Ban the use of certain materials under RoHS Directive
・Ensure transparency on substances under REACH Regulation
・Ensure traceability of nanomaterials contained in products
・Formulate environmental policies covering the automobile
industryʼs key challenges［ Social requests ］

・Abolish child labor, forced labor and discrimination
・Promote occupational safety and health・Secure decent wages and working hours
・Prevent other inhuman behaviors
・Conduct responsible procurement of minerals

Measures on Conﬂict Minerals
It has become an international concern that some minerals mined in the Democratic Republic of the Congo and nearby
nations have been the source of ﬁnancing for armed forces engaging in human rights violations. The United Statesdeﬁned four types of minerals of tin, tantalum, tungsten and gold produced in these regions as “conﬂict minerals” in the
Dodd-Frank Wall Street Reform and Consumer Protection Act and mandated annual investigations of the use of theseminerals and disclose the information.
KOITO avoids the use of conﬂict minerals along with its suppliers by conducting annual investigations on conﬂict
minerals not to assist human rights violations and environmental destruction and to fulﬁll its social responsibility
throughout the supply chain. When starting business with a new supplier, we carefully examine the results of conﬂict
minerals investigations and consider the feasibility of conducting such transactions.

50

Corporate Information

KOITO INTEGRATED REPORT 2022

FY 2022

3,534

3,471

3,551

3,570

Female

907

908

912

883

Total

4,378

4,459

4,482

4,417

Total (male and female)

Practical
positions

Total (male and female)

Ratio of female
Total (male and female)
Ratio of female
Ratio of female

17

19

25

0

47.0%

52.6%

32.0%

0.0%

71

81

70

27

7.0%

12.3%

8.6%

11.1%

43

47

47

24

25.6%

31.9%

29.8%

20.8%

131

147

142

51

18.3%

23.8%

19.7%

15.7%

Male

580

582

607

612

Female

6

6

8

9

1.3%

1.4%

Total (male and female)
Ratio of female

Number of employment ofstaff with a disability

FY 2021

Male

Generaladministrative
positions
Generaltechnical
positions

Number of employees
in senior management

FY 2020

Ratio of female
Ratio

1.0%

1.0%

80

85

84

82

2.27%

2.37%

2.31%

2.25%

19.7%

17.9%

17.7%

15.9%

Male

19.7

19.2

19.3

19.6

Female

21.8

21.3

21.5

21.7

Total

20.0

19.6

19.7

20.0

Senior management

91.7%

88.9%

100.0%

93.3%

Union members

75.4%

77.5%

85.7%

81.4%

Total

78.3%

79.4%

88.5%

84.3%

1.1%

1.1%

1.1%

1.6%

2,044.0

1,998.5

2,324.1

2,064.0

Monthly average overtime hours

23.7

20.6

9.9

9.3

Number of paid leave per employees

16.0

16.2

14.7

16.5

77.3%

78.2%

70.8%

82.5%

34

33

28

Ratio of dispatched employees
Average years employed by
the company

Re-employment ratio

Employee turnover rate (voluntary resignation)
Working hours

Paid leave taken
Number of employees taking maternity leave
Number of employees
taking child care leave
Number of employees
working reduced hours toaccommodate childcare
Number of employees using
taking family-care leave

37

Male

4

4

14

25

Female

59

58

65

65

Total

63

62

79

90

Male

1

1

0

2

Female

58

61

54

67

Total

59

62

54

69

Male

0

0

0

3

Female

3

0

1

2

Total

3

0

1

5

63,18175,24142,96044,953
10.2

Employee training time (hours)
Average training time per employee

14.4

16.9

9.6

Number of employees taking mental health training

1,028

682

239

243

Labor union membership rate

95.4%

98.3%

98.8%

98.1%

KOITO INTEGRATED REPORT 2022 51

Value Creation Story

Occupational Safety and Health
KOITO adopts “Safety comes ﬁrst” as the basic approachto safety and health and aims to create the safe, secure,and comfortable work environment with the participationof all employees. Five Safety Rules are also set as thestandard actions to follow in all activities that are to bepracticed by the entire Group.
The Safe and Environmental Committee chaired by the
Representative Director meets monthly to discuss policies
on employee safety and health measures, including
measures to prevent and recur problems or accidents, aswell as other important issues. The matters discussed at
the Safe and Environmental Committee are presented toevery employee through the Safe and Health Committee,
and the Safe and Environmental Committee of eachproduction site, or the worksite safety meetings
conducted at their worksites.
Targeting all personnel working in the premise, KOITO
repeatedly provides education and accident drills todevelop human resources who follow safety rules andincrease their awareness. We are also conducting risk
assessment and risk detection activities to enhance thesenses to ﬁnd potential risks at the worksites. In addition,
Directors and Managers conduct on-site inspections,
identify unsafe conditions, and take preventive measureswith the goal of zero labor disaster and trafﬁc accidents.

■Process safety total incident rate (lost worktime)
KOITO MANUFACTURING
Electric machinery and equipment
manufacturing industry*

0.6
0.4
0.2
0

0.51

0.58

0.54

0.54

0.52

Corporate Information

2018

2019

0

0

0

2020

2021

2022

Process safety Numbers of workers due to industrial accident
total incident ＝Total working hours
rate

(FY)

●Purchase of ESG Receivables
For fund management, in addition to investment efﬁciency and ratings, we assume the degree of contribution to ESG andsociety as one of the selection criteria. In order to contribute to materialize a sustainable society, KOITO has purchased
green bond and social bond from two organizations in FY 2022.

■Process safety incident severity rate (lost worktime)

0.04
0.03

KOITO MANUFACTURING
Electric machinery and equipment
manufacturing industry*
0.02

0.02

0.01

0.01

0.02
0.01
0

2018

2019

Process safety incident＝
severity rate

KOITO made 100 thousand euros of donations to UNHCR, the UN Refugee Agency, as
support for safety and livelihoods of people who are facing extremely harsh difﬁculties
due to the crisis in Ukraine. The donation will be used to support humanitarian activities
in Ukraine and its neighboring regions through UNHCR.

1,000,000*Source: The Ministry of Health, Labour and Welfare

0.05

To materialize one of our management philosophies, “fostering mutually beneﬁcial relationships with all stakeholders asa member of the society,” we declare in the KOITO Group Corporate Behavior Charter that “we will be conscious of our
responsibility as a good corporate citizen, and actively engage in social contribution activities, and we will contribute to
the realization of a prosperous society.” Based on the statement, we are promoting various activities.

●Donation to Support Humanitarian Efforts in Ukraine and Neighboring Regions

0.18
0.09

0.05

0.01

●Domestic Environmental Beautiﬁcation Activities

0.01

0

0

0

2020

2021

2022

Total lost working hours
Total working hours

(FY)

1,000

Initiatives between Management and Employees
A strong relationship based on mutual trust between management and employees is essential for building the workplaceenvironment where individual employee can make the best use of their capabilities, and maintain and improve highproductivity and motivation.
“KOITO Labor Union,” which consists of 3,878 KOITO employees, is a member of the “JAM Shizuoka.” In principle,
KOITO holds monthly labor-management meetings with KOITO Labor Union to discuss various issues such as businessperformance and labor conditions.
In addition, the labor union regularly conducts a union employee awareness survey on workplaces, operations andcareers targeting all union members. The labor union uses the ﬁndings to improve union activities and recommendations
to KOITO.

Respect for Human Rights
One of our management philosophies is to “stepping forward to realize our employeesʼ dreams,” and we declare in the
KOITO Group Corporate Behavior Charter that “we will respect the human rights of all persons.”
By respecting human rights of all stakeholders while communicating with business partners, local communities andemployees, KOITO strives to be a company that is trusted by international society.
We provide employee education on respecting human rights as a part of compliance education. Training to address
speciﬁc issues, such as harassment training, is offered when necessary to raise every employeeʼs awareness on respecting
human rights.

KOITO INTEGRATED REPORT 2022

ESG Activities

Social Contribution Activities

As part of its efforts for environmental conservation andbiodiversity, KOTIO is conducting activities such as
weeding at Miho-no-Matsubara, the constituent propertyof Mt. Fuji, the global cultural heritage, and cleaning thesurrounding coasts.

*Source: The Ministr y of Health, Labour and Welfare

52

Business Overview■ Weeding at Miho-no-Matsubara(2019)■ Cleanup Activities at Miho-noMatsubara Coast (2019)■ Exchanges with local schools (2019)■ Afforestation activities (2019)■ Summer festival (2019)■ Childrenʼs visiting day (2019)●Overseas Environmental Beautiﬁcation Activities
India Japan Lighting Private Limited (IJL) strives tobeautify and protect the environment by holding
exchange meetings and cleaning activities with local
residents.

●Participation in Regional Activities at Production Sites
KOITOʼs production sites periodically holds roundtablesessions with residents of regional communities and open
the sites to local community associations during summer
festivals.
We also host site tours for the residents and accept
childrenʼs visits so that they can better understand our
corporate activities.

Stakeholder Engagement
KOITO declares in the KOITO Group Corporate Behavior Charter that “we will disclose corporate information in an
appropriate, effective, and fair manner and engage in constructive dialogue.” In order to achieve our sustainable growthand increase corporate value over the medium- to long-term, we engage in constructive dialogue while fairly providing
accurate information to our shareholders and investors.
In FY 2022, KOITO held the 121st Ordinary General Meeting of Shareholders and an earnings release conference forsecurities analysts and institutional investors. At the earnings release conference, we explained our Groupʼs performance(results and plans), and received many questions and comments from the participants. Furthermore, we held a total of
approximately 220 individual meetings with institutional investors. In principle, a Director participates in all meetings.
The content of the meetings and comments or requests received from investors are reported to the top management,
Directors and Corporate Ofﬁcers, and reported to the Board of Directors. We are utilizing the knowledge gained from ourdialogue to improve our management activities.

KOITO INTEGRATED REPORT 2022 53

Value Creation Story

Business Overview

ESG Activities

Corporate Information

GovernanceTo retain the trust of all of our stakeholders, KOITO recognizes the importance of ethical standards and theestablishment of a sound management structure. We have identiﬁed enhancing “corporate governance” as one ofour materiality and promoting several activities.

Members of the Board of Directors, Audit and Supervisory Board,
Nomination Committee and Remuneration Committee (as of June 29, 2022)◎ChairCorporate Governance

Board of Directors

Board of Directors
9 Directors(including 3 Outside
Directors)

Consult

Appointment/removal

Consult**

Representative Directors

Nomination Committee
5 Directors(including 3 Outside
Directors)

Audit and Supervisory Board
4 Audit & Supervisory Board Members(including 2 Outside Audit &Supervisory Board Members)

Remuneration Committee
5 Directors(including 3 Outside
Directors)*Deliberate and resolve
draft and policy

Directors

Operational
audit

Collaboration

Collaboration

Corporate Ofﬁcers
Each Department

Audit

Auditing Section

Financial audit

Independent Auditors

Audit & Supervisory
Board Members

Election/dismissal

Election/dismissal

Election/dismissal

Election/dismissal

Directors

General Meeting of Shareholders

Audit andSupervisory Board○Members

Nomination
Committee

Remuneration
Committee

Chairman and CEO

Masahiro Otake

○

◎

◎

President and COO

Michiaki Kato

◎

○

○

Executive Vice President

Kenji Arima○

Executive Vice President

Masami Uchiyama○

Senior Managing Director

Hideharu Konagaya○

Senior Managing Director

Katsuyuki Kusakawa○

Outside Director

Haruya Uehara

○

○

○

Outside Director

Kingo Sakurai

○

○

○

Outside Director

Chika Igarashi

○

○

○

Standing Audit & Supervisory Board Member

Mitsuo Kikuchi○◎

Standing Audit & Supervisory Board Member

Koichi Sakakibara○○

Outside Audit & Supervisory Board Member

Yukinobu Suzuki○○

Outside Audit & Supervisory Board Member

Hiroshi Kimeda○○

Collaboration

Inside Directors/Audit Members

Board of Directors

Outside Directors/Audit Members

Audit and Supervisory Board

Ratio of Outside Directors
Board of Directors

Composition

Frequency

Function

Structure54

9 Directors (6 inside Directors + 3 outside Directors)
Chaired by the President

4 Audit & Supervisory Board Members(2 inside members + 2 outside members)

Once per month in principle

Eight times (FY 2022)

The Board of Directors discusses, reports, andmakes decisions on matters stipulated in the
Board of Directors Regulations, including thosematters stipulated by laws, regulations, and the
Articles of Incorporation, and supervises theexecution of Directorʼs business execution.

The Audit and Supervisory Board Members
participate in the Board of Directors and otherimportant meetings and committees, review
signiﬁcant authorization documents, and audit
the performance of directors. They aremonitoring the structure and operations of theinternal control system.

● All Audit and Supervisory Board Members attend● Other than the Board of Directors, the standing

meetings of the Board of Directors to monitor
Directorʼs business operations.
●The Managing Committee (chaired by the
President), a body to aid the Board of Directors,
is comprised of full-time Directors andCorporate Ofﬁcers. The committee meets, threetimes per month in principle, determines
business execution, reports on progress, andfollows up on business execution.
●The governance structure is being reinforced;
new proposal agendas are required to beapproved at the Managing Committee and thento the Board of Directors.

KOITO INTEGRATED REPORT 2022

Audit and Supervisory Board Members attend
the Managing Committee and other important
meetings, constantly monitor the Directorʼsbusiness execution and express opinions asneeded.
●Improving its auditing functions through close
collaboration between Audit and Supervisory
Board Members, the Internal Audit
Department, and independent auditors byholding periodic meetings and let themexchange information and opinions as needed.

67%

33%

3 Outside
Directors

6 Inside
Directors

Audit andSupervisory Board

50% 50%2 Inside
Directors

2 Outside
Directors

Remuneration
Committee

Nomination Committee

40%

2 Inside
Directors

40%

60%

2 Inside
Directors

3 Outside
Directors

60%

3 Outside
Directors

Main Proposals and Reports at the Board of Directors (from April 2021 to March 2022: 12 meetings)
Proposals

Reports

Total

Ratio

Business strategies, sustainability and governance

18

9

27

33%

Settlement, dividends and other ﬁnancial matters

7

9

16

19%

Internal control, risk management and compliance

4

4

8

10%

HR, appointment and remuneration

15

3

18

22%

Other matters

3

10

13

16%

47

35

82

100%

Total

KOITO INTEGRATED REPORT 2022 55

Value Creation Story

ESG Activities

Corporate Information

Election Policy for Directors and Audit and Supervisory Board Members

Director Effectiveness Evaluation

KOITOʼs policy is to elect a person who is capable of responding to expectations of shareholders as a Director, hasenough experience and advanced knowledge of business administration, and can fulﬁll the duties and responsibilities of a
Director as a Director candidate.
Based on this policy, the nomination committee deliberate and resolve a draft of Director candidates, and then the
Director candidates are determined by the Board of Directors. As a consultative body of the Board of Directors, thenomination committee consists of three independent outside Directors and two inside Directors, in order to ensure
objectivity and transparency of the nominations of the director candidates.
Each Director has a thorough knowledge of the respective business management. Including outside Directors, KOITO
regards Directorʼs knowledge, experience, and capabilities as diverse and well balanced. KOITO will continue to consider
the appropriate structure for the Board of Directors.
As for the election of Audit and Supervisory Board Members, KOITO expects candidates to have a good personality anda strong sense of ethics to accurately, fairly, and efﬁciently execute the audits of the execution of Director duties.

KOITO conducts annual surveys to evaluate the effectiveness of the Board of Directors. The Board of Directors evaluates
itself based on the survey ﬁndings.
The following is the outline of the results of analyzing and evaluating the effectiveness of the Board of Directors.

Specialties and Experience of Directors
Corporate
Sales,Engineering,
Management Procurement
R&D

Production, Quality
Management,
Safe & Environment

Overseas
Segment

Finance &Accounting

Corporate
Planning,
Legal, Personnel○○

Chairman and CEO

Masahiro Otake

○

○

○

President and COO

Michiaki Kato

○

○

○

Executive Vice President

Kenji Arima○○

Executive Vice President

Masami Uchiyama○

Senior Managing Director

Hideharu Konagaya○

Senior Managing Director

Katsuyuki Kusakawa○

Outside Director

Haruya Uehara○

Outside Director

Kingo Sakurai

Outside Director

Chika Igarashi

○

○

○

○
○

○
○

○

○

○
○

○
○
○
○

*Note: Above chart does not represent all skill of each Director.

Outside Directors and Audit and Supervisory Board Members
KOITOʼs policy on electing outside Directors is to appoint persons who satisfy the requirements for outside Directors in
the Companies Act and requirements for independency in the independency standard for the independent ofﬁcer system
of Tokyo Stock Exchange.
Outside Directors shall have abundant knowledge and experience in corporate administration. Outside Audit andSupervisory Board Members shall have technical knowledge of laws and ﬁnance. Both outside Directors and Audit andSupervisory Board Members are elected upon a decision at a General Meeting of Shareholders.

1. The Board of Directors meets monthly, in principle, and promptly and properly discusses important agenda items
based on the Board of Directors Regulations.
2. Prior to the beginning of the ﬁscal year, the annual meeting schedules are announced to Directors and Audit andSupervisory Board Members, including its outside members, making it easier for them to attend the meetings. To
facilitate discussion on management issues of the Board of Directors, the matters to be deliberated and reported
at the meeting and the content of the materials are discussed in advance.
3. In addition to Directors, who have experience in the various business divisions such as management, sales, technical,
production and others, the Board of Directors also receives advice and proposals from outside Directors with extensive
knowledge and experience of corporate management, or with expertise in legal and ﬁnancial matters. The Board of Directors
ensures sufﬁcient time and discusses management issues from a variety of perspectives.

The Board of Directors also operates by reﬂecting the opinions of outside Directors, such as adding the results ofself-evaluations, contents put on the agenda of the Managing Committee, trends in the industry, and the latest technicaltrends to the matters to be reported.
The Board of Directors will continue to further reinforcing its functions as the highest decision-making entity andimproving the speed of making administrative decisions to increase its effectiveness.

Remuneration of Directors
It was approved at the 119th Ordinary General Meeting of Shareholders held on June 27, 2019 that the amount of remuneration, etc. for Directors shallbe no more than ¥1.5 billion a year. In addition, it was approved at the 115th Ordinary General Meeting of Shareholders held on June 26, 2015, that,apart from the amount of remuneration, etc., for Directors, the amount of remuneration, etc., related to subscription rights as stock compensation-type
stock options for Directors shall be no more than ¥200 million a year.
The Directorsʼ remuneration system consists of ﬁxed remuneration, paid monthly, and performance-linked remuneration. Based on our internal
standards on Directorʼs remuneration, KOITO comprehensively determines the amount of remuneration by taking several factors into account:corporate performance, the amount of dividends to shareholders, remuneration amount of other companies, the amount of employeesʼ salaries, as wellas the Directorʼs management capabilities, achievements, and their contributions.
The ﬁxed remuneration amount is calculated by setting a basic amount in based on the size of the role of each Director and their position, thensetting the upper and lower limit amount for each position, the status difference by position, and the difference by the number of years in the position.
Performance-linked remuneration is evaluated and decided based on the belief that it is important to comprehensively consider the goals andachievements of each ﬁscal yearʼs performance (net sales, proﬁts, etc.) and each Directorʼs contribution.
The goal of stock compensation-type stock options is to motivate company managers to contribute to improving business performance andcorporate value in the medium- to long-term by sharing the beneﬁt of rising stock prices and the risk of falling stock prices with shareholders. The
number of stock options granted is based on each Directorʼs status of business execution and level of contribution, etc., and Directors are able toexercises their options once they have lost their position as Director.
The Board of Directors consults with the remuneration committee regarding the policy to determine the remuneration of all and each Director.
The remuneration of each Director is determined by consultations among the Representative Directors, based on the above determination policy
authorized by the Board of Directors. To ensure objectivity and transparency of the Directorsʼ remuneration determination procedure and others, theremuneration committee, an advisory body to the Board of Directors, consists of two inside Directors and three independent outside Directors.
The remuneration of each Audit and Supervisory Board Members has been determined by consultations among Audit and Supervisory Board
Members. For outside Directors, only ﬁxed remuneration is paid, and no performance-linked remuneration is paid.

Status of Audits
Based on the annual audit plans, KOITOʼs Internal Audit Department, an independent organization, conducts audits of
the operations of internal control over ﬁnancial reporting, as well as audits of the legality and appropriateness ofoperations against company-wide departments and KOITOʼs subsidiaries. The departments and subsidiaries implement
the necessary improvements to improve internal control. The Internal Audit Department reports the results of the audits
to Directors and Audit and Supervisory Board Members, and exchanges information with the Audit and Supervisory Board
Members and the independent auditors on the status of audits to facilitate mutual cooperation.
Other than attending and expressing opinions at the Board of Directors, Audit and Supervisory Board Members audit
the execution of Directorsʼ duties, legality and appropriateness of KOITOʼs decision-making based on their knowledge
and experience in each specialized ﬁeld. In addition to Audit and Supervisory Board Membersʼ on-site audits andinterviews with administrative divisions, Audit and Supervisory Board Members attend the audits performed by the
independent auditors and the Internal Audit Department. Audit and Supervisory Board Members strive to improve theeffectiveness of audit by maintaining collaboration with relevant parties, including outside Directors by exchanging
information as needed.

56

Business Overview

KOITO INTEGRATED REPORT 2022

The number of
eligible members

Breakdown of remuneration
Fixed remuneration(million yen)

Performance-linked remuneration(million yen)

Total remuneration(million yen)

Directors

15

786

349

1,136

Audit and Supervisory Board Members

5

103

ー

103

Total

20

890

349

1,239

Notes: 1. The above table includes one retired Director and one retired Audit and Supervisory Board Member at the conclusion of the 121st Ordinary General Meeting of Shareholders
held on June 29, 2021.
2. Aggregate remuneration for the outside Directors and outside Audit and Supervisory Board Members, a total of four individuals, was ¥55 million (ﬁxed remuneration only).
3. In addition to the above, KOITO resolved to abolish its Directorsʼ and Audit and Supervisory Board Membersʼ executive retirement bonuses payment system at the conclusionof the 112nd Ordinary General Meeting of Shareholders held on June 28, 2012 and to grant executive retirement bonuses, at the time of the retirement of each person involved,
to cover the period in post up to the abolition of the system to Directors and Audit and Supervisory Board Members continuing in post subsequent to the conclusion of theaforementioned General Meeting of Shareholders. On the basis of this resolution, an executive retirement bonus of ¥63 million was paid to one retired Director.
These amounts included ¥40 million, which were transferred from provision for Directorsʼ retirement beneﬁts included in the total remuneration, etc. to executives in thebusiness report for past years.
4. Besides the above, one outside Audit and Supervisory Board Member receives executivesʼ remuneration of ¥0 million from Koito Insurance Services Co., Ltd., KOITOʼs
subsidiary.
5. For Performance-linked remuneration, recurring proﬁt is used as an indicator since it reﬂects the overall results of KOITOʼs management activities, and the remuneration is
calculated giving consideration to the year-on-year change in this indicator. The amounts listed for recurring proﬁt for the ﬁscal year under review and for the previous ﬁscal
year are the amounts presented in the non-consolidated statements of income.

KOITO INTEGRATED REPORT 2022 57

Value Creation Story

ESG Activities

Corporate Information

Basic Policy of Internal Control System

Shareholdings

The Basic Policy of the Internal Control System is set as follows to improve and reinforce internal control.

Based on KOITOʼs management strategies and plans, we believe that strengthening business relations with othercompanies is essential to expanding our business and achieving sustainable growth.
From this perspective, we comprehensively consider the issues and hold shares that are held for purposes other thanpure investment. With regard to shareholdings, we regularly scrutinize and verify whether they are commensurate withdividend yields and the cost of capital, while also keeping in mind reductions, in order to determine the appropriatenessof stockholdings.

1. System ensuring that Directors and employees execute
their business duties in compliance with laws and regulations and the Companyʼs Articles of Incorporation
The Compliance Committee, the Compliance Department,
the Internal Audit Depar tment, whistle-blower internalreporting system, and other organizations and systems, aswell as the Code of Corporate Ethics and other relevant regulations, will be developed and enhanced based on the
KOITO Group Corporate Behavior Charter.
At the same time, KOITOʼs Directors, Corporate Ofﬁcers,
and employees will receive education familiarizing themwith the organizations, systems, and regulations.
2. System for the preservation and administration of information on Directors executing their business duties
Regulations will be developed and enhanced to appropriately preserve and administer minutes of the General Meeting of Shareholders, the Board of Directors, the Managing
Committee, and other information on the Directors executing their business duties.
3. Regulations and other systems for managing the risk of loss
Risk Management Regulations and other regulations andsystems for managing risk will be developed to avoid andeliminate material risks that could threaten the Companyʼsviability, and to minimize the impact when they arise. At thesame time, KOITOʼs Directors, Corporate Ofﬁcers, and employees will receive education and training on risk management.
4. System for ensuring the ef ﬁcient execution of businessduties by Directors
The Board of Directors and the Managing Committee meetings will be held regularly. Meanwhile, the Board of Directorsʼ Regulations, the Managing Committeeʼs Regulations,and other regulations pertaining to the execution of business duties by the Directors, as well as the Corporate Ofﬁcer system and other organizations and systems, will be
developed and enhanced to ensure the efﬁcient executionof business duties by the Directors.
At the same time, the business duties will be executed
according to speciﬁc plans that each division develops every
ﬁscal year based on the Presidentʼs policy.
5. System for ensuring appropriate business execution by the
corporate group comprising KOITO and its subsidiaries
KOITO and its group companies will acknowledge the
KOITO Group Corporate Behavior Charter and develop asystem for ensuring and administering the appropriate execution of business duties as follows.
ａ.KOITO clariﬁes matters to be reported in the Subsidiary
Company Management Regulations and other regulations and improves repor ting sys tem. Al so, KOITO
requests regular business reports to the group companies.
ｂ.KOITO comprehensively and thoroughly manages risks ofthe entire group based on the Subsidiary Company Management Regulation and other regulations.
If actions of the group companies are insufﬁcient, KOITO
provides instructions and corrective actions.
ｃ.KOITO requests its group companies to develop andimprove regulations, organizations, and systems for regular meetings of the Board of Directors and the executionof duties by the Directors.
Ofﬁcers serve in multiple posts in important group companies.

58

Business Overview

KOITO INTEGRATED REPORT 2022

ｄ. KOITO ensures that group companies stay in compliancewith laws and regulations based on the KOITO Group
Corporate Behavior Charter and other regulations. Also,
KOITOʼs Management Depar tment and Internal Audit
Department conduct audit and ﬁnancial audit of groupcompanies.
KOITO also clariﬁes matters requiring approvals in theSubsidiary Company Management Regulations and otherregulations so that the applicable business operations areto be executed upon approval by KOITO.
6. Matters pertaining to the status of certain employees, independence from Directors, and the effectiveness of instruction in the event the Audit and Supervisory Board Members
request such employees to assist in the execution of theirdutiesAn Audit and Supervisory Board Membersʼ Ofﬁce will beestablished to help the Audit and Supervisory Board Members execute their duties under the instructions and ordersof the Audit and Supervisory Board Members and the Audit
and Supervisory Board.
Moreover, assignment of personnel to the Audit andSupervisory Board Membersʼ Ofﬁce shall be decided upon
approval by the Audit and Super visor y Board to ensure
independence from the Directors.
7. System for Directors and employees of KOITO and its subsidiaries to repor t to the Audit and Super visor y Board
Members and for preventing unfair treatment of the Directors and employees for reporting to the Audit and Supervisory Board Members
Directors, Corporate Ofﬁcers, and employees of KOITO andits group companies shall report to the Audit and Supervisory Board Members when they learn of matters of material
impact on the Company, serious violations of laws, regulations, and the Companyʼs Ar ticles of Incorporation, andother issues of compliance.
Moreover, each Audit and Supervisory Board Member
shall exercise their own discretion in reporting the ﬁndings
from such repor ts to the Audit and Super visor y Board.
Meanwhile, the Companyʼs organization and systems will
be developed and enhanced to rigorously prevent the unfair
treatment of the Directors, the Corporate Ofﬁcers, and theemployees for reporting to the Audit and Supervisory Board
Members.
8. Policy on expenses arising when the Audit and Supervisory
B o ar d M e mb e r s e xe cu t e t he ir du tie s and s y s t e m f or
enabling the Audit and Supervisory Board Members to conduct effective audits
The Company will pay all necessary expenses involved in
the Audit and Supervisory Board Membersʼ execution of
their duties.
The Audit and Supervisory Board Member will monitor
and audit the execution of business duties at the Company
by means that include attending the Board of Directors, theManaging Committee, the Compliance Committees andother relevant conferences and committees, and examining
important documents.
The Audit and Supervisory Board Members will exchange
opinions periodically or as needed with Directors, Corporate Of ﬁcers, ﬁnancial auditors, and the Internal Audit
Department, among others.

●Basic Standards and Policy for Classiﬁcation of Investment SharesWith respect to the classiﬁcation of investment shares held for pure investment purposes and otherwise, KOITO
designates shares held solely for the purpose of receiving proﬁts from changes in the value of shares or dividends onshares as investment shares for pure investment purposes, and as other shares for investment shares held for purposes
other than pure investment.

●Basic Policy for Voting Rights
The exercise of voting rights is not based on a uniform standard, but rather is based on the perspective of whether it willlead to sustainable corporate growth and enhancement of corporate value over the medium- to long-term.
■Number of brands and amount posted in balance sheet

Unlisted shares

Other shares

Amount posted inbalance sheet(March 31, 2021)

Brands for which we
increased ourshares in FY 2022

Brands for which we
decreased ourshares in FY 2022

Amount posted inbalance sheet(March 31, 2022)

16 brandsーー

16 brands¥ 2,104 millionーー¥ 2,102 million

49 brands

1 brand

11 brands

43 brands¥ 22,987 million¥ 5,787 million¥ 1,606 million¥ 29,214 million*Stocks whose number of shares ﬂuctuated due to the consolidation of shares, stock splits, stock transfers, stock exchanges, mergers, and otherorganizational reorganizations are not included.

KOITO INTEGRATED REPORT 2022 59

Value Creation Story

Business Overview

ESG Activities

Corporate Information

Compliance
KOITO aims to continue being a company that is trusted by all stakeholders and declares in the KOITO Group Corporate
Behavior Charter that “we will comply with all applicable laws and regulations and will engage in fair, transparent, andfree market competition, as well as proper trade, and responsible procurement,” and “in our global corporate activities,
we will also comply with international rules and local laws, respect local culture and customs, and maintain soundrelationships with government and government agencies.” KOITO has identiﬁed reinforcement of “compliance” as one ofour materiality. To foster an organization and atmosphere to place importance on compliance, the entire KOITO Group iscommitted to engage in compliance activities.

Compliance Management Structure
To strengthen our compliance system, KOITO has established the Compliance Committee, Compliance Promotion Ofﬁce,
Internal Audit Ofﬁce, and whistle-blowing desk (Corporate Ethics Consulting Desk). The Compliance Committee meetsregularly to conﬁrm and follow up on the action plans and results of the Compliance Promotion Ofﬁce and the Internal
Audit Ofﬁce, the operational status of the Corporate Ethics Consulting Desk, and responses to risks.
Personnel in charge of compliance are also appointed at the domestic and overseas subsidiaries to strengthen
compliance and grasp the compliance status in close collaboration. In this way, KOITO promotes compliance-related
initiatives in the entire Group.

●Anti-corruption Initiatives●Prevention of Anti-competitive Practices

Through establishing the “Antimonopoly Act
Regulations” and implementing internal education
periodically, KOITO is working to prevent corruption, suchas bribery, extortion, fraud, embezzlement, money
laundering, conﬂicts of interest, illegal ﬁnancing topolitical parties and facilitation payments.
The penalties imposed in the event of violations of laws
are stipulated in our internal regulations.
Nobody in the Group was ﬁned or dismissed forcorruption in FY 2022.

Through establishing the “Antimonopoly Act
Regulations” and implementing internal education,
KOITO is working to prevent anti-competitive practices,such as market division, price-ﬁxing, abuse of dominantposition and dumping.
When KOITO employees come into contact withcompetitors, we conduct ex-ante and ex-post reviews toensure that they do not engage in conduct that may
violate the Antimonopoly Act.
With the attendance of Audit and Supervisory Board
Members, the Internal Audit Department conducts annual
audit to departments concerned with the Antimonopoly
Act and Subcontract Act, and the ﬁndings are reported to
the Compliance Committee. If any problems were foundduring the audit, the details of the improvement are also
reported to the Committee.
The penalties imposed in the event of violations of laws
are stipulated in our internal regulations.
Nobody in the Group was ﬁned or dismissed foranti-competitive practices in FY 2022.

Reinforcement of Compliance●Fostering Compliance Awareness
KOITO strives to foster employee awareness of compliance by distributing a portable “Ethics Card”
to all employees so that the KOITO Group Corporate Behavior Charter can be a behavior standard
for employees. We also conduct an annual Corporate Ethics Survey for all employees to gauge thelevel of awareness, understanding, and implementation of the KOITO Group Corporate Behavior
Charter. Results of the survey are reported to the Board of Directors and Compliance Committee.
According to the results of the FY 2022 survey, awareness of the KOITO Group Corporate Behavior
Charter was 97%, and employeeʼs ratio who “act to gain customersʼ satisfaction and trust,” “comply
with relevant laws and internal rules,” and “respect human rights” all accounted for 100%,
maintaining a high level of awareness, understanding and implementation.

●Compliance Education●Prevention of Harassment

KOITO provides compliance education in the job-rankbased and theme-based training in various ﬁelds, such as
the Antimonopoly Act, the Subcontract Act, andharassment for employees. Compliance training byoutside instructors is also provided to Directors,
Corporate Ofﬁcers, Deputies and Managers.
In addition, KOITO also provides compliance education
to suppliers. We are asking suppliers to ensure complianceat the annual procurement policy brieﬁng session.

KOITO regularly conducts harassment surveys for all
employees. In the survey, subordinates evaluate thebehavior of supervisors (managers such as department
managers and section chiefs, as well as management
supervisors such as subsection chiefs) in the workplace.
Supervisors assess the differences between theirperceptions and evaluation results, and work to prevent
harassment by formulating and posting “My Pledge to
Eliminate Harassment.”

Strengthening Compliance in the Supply Chain
In order to further strengthen our fair procurement activities, KOITO periodically holds “Compliance training session” foremployees of relevant administrative divisions and business partners (subcontractors and others). In FY 2022, a total of
314 people participated in this training, and we are working to improve their knowledge of procurement activities.

Whistle-blowing System
KOITO has established “corporate ethics consulting
desks” inside and outside the company which allows
employees to report or consult on compliance andharassment issues. After investigating all cases reported
or consulted, we are taking appropriate measures andreport them to the Board of Directors and the Compliance
Committee.
When operating the Corporate Ethics Consultation
Desk, we take thorough care of human rights, such asprotecting the privacy of whistle-blowers and consultants
and preventing disadvantages, so that users can reportand consult with peace of mind. The penalties for
disadvantageous treatment of whistleblowers are clearlystipulated in our internal regulations.

■Number of consultations received(cases)50

KOITO INTEGRATED REPORT 2022

4

1

42

40
3

36

30

32
1

20

25

22

10

0

60

■Inside consultation desk
■Outside consultation desk

2018

2019

2020

2021

2022

(FY)

KOITO INTEGRATED REPORT 2022 61

Value Creation Story

ESG Activities

Corporate Information

Risk Management

Information Security

KOITO enriches and reinforces comprehensive risk management to properly identify diversifying and complex risks,prevent risks from becoming materialized, and minimize damage in case problem occurs.
Departments are assigned to risk management, including the implementation of measures to reduce and avoid risks anddaily management. The Quality Assurance Department is assigned risks associated with the safety of products, theProcurement Headquarters handles risks in the supply chain, and the Safety Environment Department handles risks ofnatural disasters. As such, each department assess relevant risks and implement preventive measures. Ofﬁcers of assigned
responsible departments act as the general managers. In addition, training on individual risks is provided to employees.
If risks become actual problems, the basic protocol is to report the incidents to the Board of Directors, the highest
decision-making entity of the business administration, and such problems are swiftly and properly handled under the
direction of the top administrators.

KOITO has identiﬁed “information security” as one of our materiality, and ensuring the protection of personal
information and conﬁdential information based on the Information Security Policy while implementing proper
information security measures to materialize safe and thorough management.
We have established a cyber security system that can detect the latest viruses and abnormal conditions at all sites,
including domestic and overseas afﬁliates. At the same time, we have established CSIRT (specialized team that deals withinformation security issues) at each site to ensure an immediate response in the event of an emergency.

recognizes that the appropriate management of

Based on our basic policy “to prioritize human lives and maintain business
continuity,” KOITO examines disaster control, initial response, andrestoration work to ﬁnd problems and re-evaluate and reinforce BCP
activities based on lessons learned through natural disasters such as theGreat East Japan Earthquake, Kumamoto Earthquake, heavy rains,
typhoons, and expected damage caused by the Nankai Trough Earthquake.
To control damage from natural disasters, such as earthquakes, KOITO
implements aseismic reinforcement of production site buildings, anti-fallmeasures for facilities and equipment, installation of emergency
earthquake notiﬁcation systems, regular disaster drills including
evacuation and ﬁreﬁghting, all-employee safety conﬁrmation drills, andgeneral inspections of the maintenance and management of evacuationroutes. KOITO also intends to minimize the damage caused by disasters by
hosting lectures on how to check hazard maps and evacuation.
To prevent ﬁre, KOITO makes efforts to reinforce the system to ensure
quick extinguishing through thorough management of hazardous materials
and combustibles, such as organic solvents, increased installation andrearrangement of ﬁre extinguishing equipment to prepare for ﬁre, andimplementation of initial ﬁreﬁghting training.
In addition, on-site inspections on safety, ﬁre, and disaster prevention arebeing conducted at subsidiaries and suppliers. Subsidiaries in Japan are
also mutually inspecting and improving each otherʼs production sites in
Subsidiaries Mutual Safety Inspections to improve the safety, ﬁre, anddisaster prevention level in the entire Group and the supply chain.

information is a critical management issue, and has
formulated an “Information Security Policy” to gain thetrust of customers and society at all times.
KOITO intends, from now on, to comply with thisInformation Security Policy, maintaining and improving
information security by protecting information assets
from various threats and handling information
appropriately.

systemKOITO has appointed a Chief Information Security Ofﬁcer■ Fireﬁghting training using ﬁre hydrant

reviewed and improved regularly. With this CISO andmanagement system, KOITO makes every possible effort
to protect all information assets held by us and comply
with laws, regulations, and other rules related to
information security.
2. Development of internal information security-related
rules
KOITO develops internal rules based on our Information■ Online disaster control seminar by Regional
Management Center of Central Shizuoka

Security Policy to have a clear policy for the handling of
not only personal information but also all otherinformation assets, and makes all employees and business
partners fully aware of KOITOʼs strict measures against
information leaks etc.
3. Implementation of appropriate information security

The KOITO Group monitors computers and networks of
the Group as a whole, including its domestic and overseas
afﬁliates, and is building CSIRT (Computer Security
Incident Response Team), capable of responding
immediately to any cyber-attacks or abnormal conditions
on a global basis.
KOITOʼs information security is managed by the
Information System Department, along with General
Affairs Department and Compliance Promotion Ofﬁce.
Furthermore, each department periodically checks for
information security risks and implements a PDCA cycle
to continuously improve security.

・Formulating rules for domestic and overseas business trips,
and implementing measures to prevent infectious diseases
・Introducing online meetings
・Measuring outside visitorsʼ temperature and requesting them tohand sanitizing and wearing mask.

Information Security Management System
In order to protect information assets from the risk ofleaks, theft, alternation, etc., the KOITO Group operates
information security management based on management
standards for the conﬁdentiality, integrity, andavailability of information. In particular, major functional
divisions are assuring information security and promoting
the improvement of security reliability. Divisions fordesign, development, sales, purchasing and quality
management of automotive lighting equipment andothers have acquired ISO 27001, an international
standard for information security.
The KOITO Group will continue to strive to further
maintain and improve information security by improving
our information security management system throughcontinuous PDCA cycle and by expanding the scope of
certiﬁcation within the Group.

measures
KOITO implements organizational, physical,
technological, and personal security management
measures so that information assets of KOITO are notsubjected to unauthorized access, destruction, leakage, oralteration. These measures shall be adjusted and adapted

・Hygiene in prevention (wearing masks and hand sanitizing)・Periodically disinfecting areas where an unspeciﬁed number of people touch, such as doors, switches, etc.
・Installing partitions in ofﬁces, meeting rooms, and dining halls
・Implementing staggered eating
・Avoiding three Cs (closed spaces, crowded places, and close-contact settings) in daily life and implementing “new normal”
・Actions in line with the measures requested by the prefectural governments to prevent infectious diseases

KOITO INTEGRATED REPORT 2022

management system that enables prompt implementation
the society at all times. This management system shall be●Major countermeasures against infections

・Restricting employees to use public
transportation for commuting regarding theinfection status at our site location
・Introducing teleworking in administrative andindirect departments
・Measuring employeesʼ temperature whenentering the ofﬁce etc.

(CISO) and established an information securityof security information measures, to gain the trust from

Putting the highest priority on the safety of customers, business partners, employees and their families, the KOITO Grouphas implemented various measures based on requests from the government and local governments for the purposes of
preventing the spread of COVID-19 infections. We will continue to utilize telework and online meetings to reduce the riskof infections and to promote smooth operations and improve efﬁciency.

●Business travels and meetings

Organization for Information Security Activities

1. Establishment of information security management

KOITOʼs Response to the Spread of COVID-19 Infections●Commuting

Information Security Policy
KOITO MANUFACTURING CO., LTD. (“KOITO”)

Natural Disaster Risks

62

Business Overview

to changes when technological and social needs arise.
4. Implementation of internal information security audits
KOITO regularly conducts internal information security
audits to verify that security measures are functioning
effectively in the course of business operations, inaccordance with relevant laws and internal regulations andrules.
5. Enhancement of information security literacy
KOITO provides thorough security education/training toemployees etc. so that all people dealing with our
information assets perform their duties with information
security literacy. KOITO also continues to provide its
employees with education/training to respond to

Information Security Measures
To strengthen information security measures against
cyberattacks, KOITO has established internal regulations
based on its Information Security Policy and is
implementing various cyber security measures, including
the establishment of a Group-wide monitoring system
and an incident response system. We are seeking to build
a strategic information management system that not only
appropriately manages conﬁdential and personal
information, but also manages and utilizes intellectual
property and other intangible assets.
In addition, KOITO periodically conducts internal andexternal intrusion tests by external specialist agencies tothoroughly inspect and conﬁrm security vulnerabilities
and strive to improve information security.

ever-changing circumstances.

KOITO INTEGRATED REPORT 2022 63

Value Creation Story

Fostering Awareness of Information Security

Business Overview

ESG Activities

Corporate Information

Tax Policy

To prevent information security incidents, KOITO strives to foster awareness within the company by holding annual
information security training sessions for all employees.
In addition, targeted email drills are conducted once a year for all employees. The results are reported to Managing
Committee and IT Meetings, and necessary measures are taken.
Moreover, KOITO periodically provides information on information security to all employees via email, introducing
examples of information security, precautions for teleworkers and alert anticipated targeted email attacks.
To our suppliers, we are asking them to implement information security-related measures, and conducting necessary
assessments and improvements using checklists and other means.

The KOITO Group recognizes the importance of paying appropriate taxes and promotes sound tax activities inaccordance with the tax laws and policies of each country and region while striving to build the proper tax governancesystem.

Tax Policy
1.Tax Compliance
KOITO MANUFACTURING CO., LTD. (“KOITO”) and its subsidiaries (“the KOITO Group”) comply with tax codes
as well as relevant laws and regulations, ﬁle the proper tax returns and pay taxes in each country and region

Intellectual Property Management

where we conduct businesses.

The KOITO Group places intellectual properties as the source of international competitiveness and develops businessstrategies by integrating R&D and intellectual property strategies. KOITO will continue to encourage activities to create
intellectual properties and work to protect and utilize the intellectual property rights appropriately. At the same time, wewill respect the intellectual property rights of others and strive to prevent infringements.

64

The KOITO Group strives to properly comply with the tax laws, systems and administrative operations in each country
with the cooperation between Group companies in an effort to minimize tax risks.
from each Group company.

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

R&D expenditures (billion yen)

36.1

34.0

36.1

32.6

34.0

Number of patents applied

800

1,230

1,130

938

867

2,630

2,890

2,830

2,813

2,900

Organization for Intellectual Property
Management

Measures to Prevent Violation ofIntellectual Property

The KOITO Group makes effort to reinforce theintellectual property management system of the entire
Group to acquire intellectual property rights, conclude
licensing contracts, and respond to the violation of rights
globally by developing a management system with
KOITO MANUFACTURING at the center to establish andexecute intellectual property strategy integrated withbusiness strategies.

Given the importance of intellectual properties, the
KOITO Group provides training on intellectual property
rights through the job-rank based education to increase
the awareness of every employee.
In addition, KOITO has introduced a patent researchsystem available to all researchers and designers to avoid
violating intellectual property rights of others andpreventing future conﬂicts.

KOITO INTEGRATED REPORT 2022

2.Tax Governance System

The tax risks of the KOITO Group are managed under the discretion of the Chief Financial Ofﬁcer according to reports■R&D expenditures and number of patents

Number of patents held

The KOITO Group does not engage in tax avoidance using tax havens, or use tax planning that does not coincidewith business conditions.

In addition, the KOITO Group will seek the advice and guidance of external experts for any complex risks or grave
matters of concern to respond after investigation, evaluation and deliberation.

3.Transfer Pricing
The KOITO Group will adhere to armʼs length transaction principles with understand of the OECD Transfer Pricing
Guidelines and domestic tax Base Erosion and Proﬁt Shifting (BEPS) to set the price of transactions between Group
companies.
In addition, the KOITO Group will seek the advice and guidance of external experts as necessary to reduce the tax
risks related to transfer pricing.

4.Elimination of Dual Taxation
The KOITO Group applies tax treaties to eliminate dual taxation on the same economic proﬁts from multiple countries
and regions.

5.Relationship with Tax Authorities
The KOITO Group properly responds to any inquiries and requests for information from the tax authorities in eachcountry and region where it does business with good faith and in a timely manner in an effort to build and maintain
good relationships founded in trust with tax authorities.
If any question arises between the KOITO Group and tax authorities about tax practices, the understanding of tax
codes or other tax-related matters, the KOITO Group will work together with each tax authority to resolve the matter inquestion.

KOITO INTEGRATED REPORT 2022 65

Value Creation Story

Business Overview

ESG Activities

Corporate Information

Executive Management (as of June 29, 2022)
Chairman and CEO

President and COO

Outside Director

Masahiro Otake

Michiaki Kato

Haruya Uehara

Kingo Sakurai

April
June
June
June
June
June
June

April 1982 Joined KOITO
October 2004 General Manager ofEuro-American Operations
June 2005 Director
June 2011 Managing Director
June 2012 Managing Corporate Ofﬁcer
June 2013 Director and Managing
Corporate Ofﬁcer
June 2017 Senior Managing Director
June 2021 President (present position)

April 1969 Joined The Mitsubishi Trustand Banking Corporation (currently Mitsubishi UFJ Trus t
and Banking Corporation)
June 1996 Director
June 1998 Managing Director
June 2001 Senior Managing Director
June 2002 Director, Deputy President
April 2004 President
October 2005 P r e s i d e n t , M i t s u b i s hi UFJ
Trust and Banking Corporation
June 2008 Chairman
April 2012 Senior Adviser
June 2013 O u t s i d e D ir e c t o r, KOI T O(present position)
J u l y 2018 Senior Advisor, Mit subishi
UFJ Trust and Banking Corporation (present position)

March 1972 Registered as certiﬁed public
accountant
June 1983 Independent Auditor, KOITO
June 2009 Resigned Independent AuditorJ u l y 2009 Adviser (part time), KOITO
June 2017 Out side Dire c tor (pres ent
position)

1977 Joined KOITO
1987 Director
1993 Managing Director
1999 Senior Managing Director
2005 Executive Vice President
2007 President
2015 Chairman (present position)

Reason for appointment：

Reason for appointment：

Mr. Masahiro Otake has acquired extensive experience and a high level of
insight through previously serving as President. He has also been involved
with KOITOʼs management as a Director, and has contributed signiﬁcantly tothe improvement of KOITOʼs performance and corporate value.

Mr. Michiaki Kato has acquired extensive experience and a high level of insight
through serving as President and in other positions. He has also been involved
with KOITOʼs management as a Director, and has contributed signiﬁcantly tothe improvement of KOITOʼs performance and corporate value.

Number of the Board of
Directors attended (FY 2022)

12/12 (100%)

Number of the Board of
Directors attended (FY 2022)

12/12 (100%)
Reason for appointment：

Executive Vice President

Executive Vice President

Kenji Arima

Masami Uchiyama

April 1977 Joined KOITO
January 2005 Direc tor, Koito Europe NV(KENV)
June 2005 Director, KOITO
June 2011 Managing Director
June 2012 D i r e c t o r a n d M a n a g i n g
Corporate Ofﬁcer
June 2013 Senior Managing Director
June 2019 E x e c u t i v e V i c e P r e s i d e n t(present position)
Engineering Headquar ters,
Sales Headquarters, In chargeof Mobility Strategy Department, Research & Development D ep ar tment and DX
Promotion (present position)

Reason for appointment：

Reason for appointment：

April 1983 Joined KOITO
June 2005 General Manager of Personnel Department
June 2007 Director
June 2011 Managing Director
June 2012 D i r e c t o r a n d M a n a g i n g
Corporate Ofﬁcer
June 2017 Senior Managing Director
June 2021 E x e c u t i v e V i c e P r e s i d e n t(present position)
Produc tion Headquar ter s ,Shizuoka Plant, In charge of
S hi z u o k a G e n e r al A f f a ir s
Depar tment, Logistics
Department, Safety Environment Depar tment, Production Contr ol D ep ar tment ,Electronics Products Production D epar tment and CN
Promotion (present position)

Since joining KOITO, Mr. Kenji Arima has acquired extensive experience and ahigh level of insight through serving as Head of Engineering Headquarters,
Sales Headquar ters and in other positions. He has also been involved with
KOITOʼs management as a Director, and has contributed signiﬁcantly to theimprovement of KOITOʼs performance and corporate value.

Since joining KOITO, Mr. Masami Uchiyama has acquired extensive experiencea n d a hi g h l e v e l o f in si g h t t hr o u g h s e r v in g a s H e a d o f P r o du c t i o n
Headquarters and in other positions. He has also been involved with KOITOʼsmana g em e n t a s a Dir e c t or, and ha s co n tr ibu t e d sig ni ﬁ c an tly t o t h eimprovement of KOITOʼs performance and corporate value.

Number of the Board of
Directors attended (FY 2022)

12/12 (100%)

Number of the Board of
Directors attended (FY 2022)

66

Katsuyuki Kusakawa

April 1987 Joined KOITO
April 2006 General Manager of Accounting Department
June 2009 Director
June 2012 Corporate Ofﬁcer
June 2013 Managing Corporate Ofﬁcer
June 2015 D i r e c t o r a n d M a n a g i n g
Corporate Ofﬁcer
June 2017 S enior Managing Dir e c tor(present position)
Finance & Accounting Headquarters, Procurement Headquarters (present position)

Reason for appointment：

Reason for appointment：

April 1980 Joined Toyota Motor Co., Ltd.
(c u r r e n t l y To y o t a M o t o r
Corporation)
January 2009 Seconded to Toyota Motor
Sales, U.S.A., Inc.
March 2011 Standing Adviser, KOITO
June 2011 Managing Director
June 2012 D i r e c t o r a n d M a n a g i n g
Corporate Ofﬁcer
June 2019 S enior Managing Dir e c tor(present position)
In charge of Corporate Planning Depar tment , Compliance Department, Personnel
Depar tment, Cost Administration Depar tment and DX
Promotion (present position)

Since joining KOITO, Mr. Hideharu Konagaya has acquired extensive experienceand a high level of insight through serving as Head of Finance & Accounting
Headquarters, Procurement Headquarters and in other positions. He has also
been involved with KOITOʼs management as a Director, and has contributed
signiﬁcantly to the improvement of KOITOʼs performance and corporate value.

Since joining KOITO, Mr. Kat suyuki Kusakawa has acquired ex tensive
experience and a high level of insight through ser ving as Deputy Head ofEngineering Headquarters and in other positions. He has also been involved
with KOITOʼs management as a Director, and has contributed signiﬁcantly tothe improvement of KOITOʼs performance and corporate value.

KOITO INTEGRATED REPORT 2022

12/12 (100%)

Number of the Board of
Directors attended (FY 2022)

11/12 (92%)

Outside Director

Chika Igarashi
April 1997 Registered as an attorney
Joined a law ﬁrm in TokyoJ u l y 2006 Jo in e d A s a hi L a w O f ﬁ c e s(c ur r e n tl y Nis himur a &Asahi) (present position)
June 2007 Registered as an attorney atlaw in New York State
June 2022 O u t s i d e D ir e c t o r, KOI T O(present position)
Reason for appointment：
Ms. Chika Igarashi is an attorney so that her knowledge and experience may
be re ﬂec ted in KOITOʼs management and she may fulﬁll a super visor yfunction from this perspective.

Senior Managing Director

Senior Managing Director

12/12 (100%)

Number of the Board of
Directors attended (FY 2022)

Reason for appointment：
Mr. Kingo Sakurai is a certiﬁed public accountant, so that his knowledge andexperience may be reﬂected in KOITOʼs management and he may fulﬁll asupervisory function from this perspective.

11/12 (92%)

Hideharu Konagaya

Number of the Board of
Directors attended (FY 2022)

Mr. Haruya Uehara ser ves as Senior Advisor to Mitsubishi UFJ Trust andBanking Corporation, so that his knowledge and experience may be reﬂectedin KOITOʼs management and he may fulﬁll a supervisory function from thisperspective.

Outside Director

Number of the Board of
Directors attended (FY 2022)

12/12 (100%)

KOITO INTEGRATED REPORT 2022 67

Executive Management (as of June 29, 2022)

Reason for appointment：

Standing Audit and Supervisory Board Member

Standing Audit and Supervisory Board Member

Mitsuo Kikuchi

Koichi Sakakibara

April 1968 Joined KOITO
April 1995 General Manager, Production
Control Department
June 1999 Director
June 2005 Managing Director
June 2006 Senior Managing Director
June 2009 Executive Vice President
June 2013 Standing Audit and Supervisory Board Member (present
position)

April 1975 Joined KOITO
June 1999 General Manager of ProductDevelopment Department
June 2001 Director
June 2007 Managing Director
June 2009 Senior Managing Director
June 2013 Executive Vice President
June 2021 Standing Audit and Supervisory Board Member (present
position)

Since joining KOITO, Mr. Mitsuo Kikuchi has acquired extensive experienceand a high level of insight through serving as Head of Sales Headquar ters,
Deputy Head of Production Headquarters and in other positions. He has also
been involved with KOITOʼs management as a Director, so that his knowledge
and experience may be reﬂected to strengthen KOITOʼs auditing activities.

Number of the Board of
Directors attended (FY 2022)

12/12 (100%)

Number of the Board of
Directors attended (FY 2022)

12/12 (100%)

Number of Audit and Supervisory
Board attended (FY 2022)

8/8 (100%)

Number of Audit and Supervisory
Board attended (FY 2022)

6/6 (100%)

Outside Audit and Supervisory Board Member

Outside Audit and Supervisory Board Member

Yukinobu Suzuki

Hiroshi Kimeda

April 1965 Joined Sendai Regional Taxation Bureau
J u l y 1990 A s sis t a n t D ir e c t o r, L ar g e
Enterprise Examination Division, Large Enterprise Examination and Criminal Investigation Department, National
Tax Agency
J u l y 1995 D e p u t y D is t r i c t D ir e c t o r,
Hachioji Tax Ofﬁce
December 1995 A c quir e d qu al i ﬁ c a t i o n a s
certiﬁed tax accountant
J u l y 2005 Director-General, Takamatsu
National Tax Tribunal
J u l y 2009 Adviser (part time), KOITO
January 2010 Audit and Supervisory Board
M e mb e r, Koi t o Insur an c e
Ser vices Co. , Ltd. (present
position)
June 2016 Outside Audit and Supervisor y B o ar d M e mb e r, KOITO(present position)

Reason for appointment：

Reason for appointment：

April 1993 P ub l i c P r o s e c u t o r, To k y oDistric t Public Prosecutors
Ofﬁce
April 1997 Public Prose cutor, Spe cial
Inves tigation Depar tment ,Tokyo District Public Prosecutors Ofﬁce
August 1998 Visiting scholar, Notre Dame
Law School in U.S.A.
June 1999 Public Prosecutor, Criminal
Af fairs Bureau, Minis tr y ofJustice
June 2001 Assistant Division Chief, Planning and L e gal Division ,Financial Services Agency
August 2002 Re gis ter e d as an a t tor ney
Joined Nishimura & Partners(c ur r e n tl y Nis himur a &Asahi) (present position)
December 2011 Out side Direc tor, Advance
Create Co. , Ltd. (present
position)January 2019 Outside Audit and Supervisor y B o ar d M e mb e r, KOITO(present position)

Mr. Yukinobu Suzuki is a certiﬁed tax accountant, so that his knowledge andexperience may be reﬂected to strengthen KOITOʼs auditing activities.

Mr. Hiroshi Kimeda is an attorney, so that his knowledge and experience may
be reﬂected to strengthen KOITOʼs auditing activities.

Number of the Board of
Directors attended (FY 2022)

12/12 (100%)

Number of the Board of
Directors attended (FY 2022)

11/12 (92%)

Number of Audit and Supervisory
Board attended (FY 2022)

8/8 (100%)

Number of Audit and Supervisory
Board attended (FY 2022)

8/8 (100%)

Senior Managing
Corporate Ofﬁcer

Managing
Corporate Ofﬁcer

Corporate Ofﬁcer

Jun Toyota

Hideo Yamamoto

Koichi Toyoda

Kohei Yamasaki

Takayuki Katsuda

Mamoru Murakoshi

Kirk Gadberry

Atsushi Inoue

Masahiro Otake

Kazuhiro Aoshima

Masatoshi Yoneyama

Yuji Higashi

Masayasu Ito

Toshiyuki Katsumata

Hideki Ochiai

Masayuki Otake

Kakuya Yamamoto

Masataka Choji

Koji Shimakura

Eisuke Shibata
Takahito Otake

68

Reason for appointment：

Since joining KOITO, Mr. Koichi Sakakibara has acquired extensive experiencea n d a hi g h l e v e l o f in si g h t t hr o u g h s e r v in g a s H e a d o f P r o du c t i o n
Headquarters and in other positions. He has also been involved with KOITOʼsmanagement as a Director, so that his knowledge and experience may bereﬂected to strengthen KOITOʼs auditing activities.

KOITO INTEGRATED REPORT 2022