ESG Report

Corporate Governance

Audit & Supervisory Board

The Yokowo Group aims to achieve its management goals by ensuring management efficiency, transparency andcompliance through the continuous strengthening of its corporate governance, positioned as one of the Groupʼsimportant management challenges.

Corporate Governance System

Basic Principles Concerning Corporate
GovernanceYokowo is a company with auditors and has a system ofcorporate governance consisting of: a Board of Directors
responsible for management strategy and supervisory functions,an Executive Officer system that fulfills business execution, andan Audit & Supervisory Board that performs management audit
functions.

Recognizing that Yokowo exists today through the supportof its various stakeholders, the Group positions strengthening
corporate governance as one of its important management
challenges. As well as building smooth relations with its
stakeholders, the Group aims to maximize corporate value
through further enhancing its corporate governance.

January 2023: Deliberated and decided upon a draft proposal

In addition to one full-time internal Audit & Supervisory Board

regarding the executive structure (directors, auditors,

Member with sufficient knowledge in finance and accounting,and executive officers) and the establishment of thethe Company has appointed three highly independent outside
Audit & Supervisory Board Members to further strengthen the
management audit function, and these include a female outside
Audit & Supervisory Board Members.

Yokowo Scholarship Foundation for the fiscal year
ending March 31, 2024.

Executive Officers
By adopting the Executive Officer system, the strategic decisionmaking and operational supervisory functions are clearly
separate from the executive function, in order to create a systemfor prompt and appropriate execution of operations. In addition
to four internal directors, the Company has appointed elevenexecutive officers in the positions of Chief Officer, General
Manager, and General Manager at Tomioka plant, etc.

February 2023: Conducted interviews with candidates for outside
directors.
April 2023: Deliberated and decided upon draft proposals regarding
the payment of bonuses to executive directors andexecutive officers for the fiscal year ended March 31,
2023, and regarding compensation for the fiscal year
ending March 31, 2024. Drew up succession plan anddeliberated on developing human resources.
August 2023: Deliberated and decided upon draft proposals
regarding changes to the executive officer system,and deliberated the succession plan.

Board of Directors
To speed up the decision-making process, the Board of
Directors consists of only a limited number of directors (a totalof seven̶four internal and three outside directors) (as of end
June 2023). The Company has appointed three independent
outside directors (with a high level of independence) to further
strengthen the management supervisory function, and theseinclude a female outside director.

▼ Corporate Governance System (As of April 1, 2023)

Elect

Board of Directors outside
Consultation
SuperviseElect
Cooperate

Audit

Audit & Supervisory Board

Independent Auditors

Management/Supervision

Reporting

Nomination andCompensation
Advisory Committee

Cooperate

Measures to Enhance Auditing andSupervisory Functions

Nomination and Compensation Advisory Committee

As well as sharing information and exchanging ideas in advanceof the Board of Directorsʼ agenda, the Companyʼs outside
directors share matters of deliberation and reports from the
Audit & Supervisory Board to the extent necessary. Full-time
internal auditors ensure compliance and appropriateness byattending important monthly meetings to regularly monitor
how business is conducted. For the fiscal year ended March 31
2023, we conducted site audits of three domestic subsidiaries,
and of seven overseas subsidiaries in the United States, Vietnam,
and Malaysia, and audits based on unique management
environments of local facilities and on country-specific risks.

The Company established the Nomination and Compensation
Advisory Committee as an advisory body for the Board of
Directors, with the aim of enhancing the transparency of thedecision-making process for matters relating to corporate
governance, such as directorsʼ nomination and compensation.
The Committee has three members, composed of theCompanyʼs two independent outside directors Ms. Kuniko
Muramatsu and Mr. Makoto Tobari, and the Representative

General Meeting of Shareholders
Elect

Initiatives to Improve Governance

Audit

Audit

Business Execution
President and Executive Officer

Director, President and Executive Officer Mr. Takayuki Tokuma, with
Ms. Kuniko Muramatsu serving as chairperson. The Committee
receives requests for consultation from the Board of Directors,
deliberates and decides on proposals, and then submits reporssts
to the Board of Directors. The rules governing the operation of theBoard of Directors specify that, in its decision-making, the Board
must respect the content of the reports received from theCommittee to the utmost possible extent.
A summary of the meetings held from April 2022 throughAugust 2023 and the main agenda items are as follows.

Business Risk Management Committee

April 2022: Deliberated and decided upon a draft proposal
regarding the payment of bonuses to executive
directors and executive officers for the fiscal year
ended March 31, 2022.

Internal Audit Dept.

Management Planning H.Q.
Administration
Management H.Q.

SCI (Sustainability & Corporate Integrity)
Promotion H.Q.

June 2022: C hairperson appointed under the new committee
structure (Ms. Kuniko Muramatsu reappointed).

Sales H.Q.
Technical H.Q.

VCCS
Business Div.

CTC
FC
MD
Business Div. Business Div. Business Div.

Incubation
CenterCore Technology Development H.Q.
Production Process Innovation H.Q.

Functional
Organization

Business Risk Management Committee
The Company has established the Business Risk Management
Committee as an organization under the direct control of the
President. Its aim is to strengthen the Companyʼs competitivenessand ability to manage risk, such as by forming alliances throughjoint ventures, mergers and acquisitions to further advancebusiness, and by verifying the profitability of large-scale investments.
In addition to regular reports to the Board of Directors, theCommittee conducts activities in close cooperation with theoutside directors.
This was conducted seven times in the fiscal year ended
March 31 2023, to verify the profitability of large-scale
investment projects such as automation facilities, and to
conduct follow-up on alliance projects.

September 2022: Discussed the direction of the Board of
Directors and operational methods.

Purchasing H.Q.
Quality Assurance H.Q.

Business Organization

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Analysis and Evaluation of theEffectiveness of the Board of Directors
Since 2016 Yokowo has been conducting self-evaluation
surveys and, when necessary, interviews with all its directors andauditors, collecting the results and analyzing them.
This year (2023), the survey was conducted in May, and items
classed as either favorable or issues/requests were as follows.
<Favorable>■ The Board of Directors has atmosphere that actively listens
to the opinions of outside directors, and that emphasizes
active discussions.
<Issues/requests>■ The Company should ensure more diversity in the compositionof the Board of Directors in terms of gender, nationality, age,and other backgrounds.
■ The Company should ensure a sufficient number of independent
outside directors who are qualified to contribute to enhancing
corporate value over the medium to long term.
■ Agenda items have increased at Board of Directors meetings,
but require more in-depth discussion.
In general, the effectiveness of the Companyʼs Board of Directors
was determined to be sufficient, but we will work to further
improve effectiveness by addressing issues, including those above.

Director and Executive Officer
Compensation
Policy on Determining Director and Executive
Officer Compensation
With regards to compensation for the directors of the Company,
an upper limit for the total compensation in each fiscal year is set
by resolution at the General Meeting of Shareholders.
Compensation for individual directors is then determined bya process whereby the Nomination and Compensation Advisory
Committee receives a request for consultation from the Boardof Directors, and then deliberates and decides on proposals
regarding the amount to be paid to individual directors before
reporting to the Board of Directors, which then makes the
final decision, while respecting the reports received from theCommittee to the utmost possible extent.
In the same way, with regards to compensation for the35

Yokowo 2023 Integrated Report

auditors, an upper limit for the total compensation in each fiscal
year is set by resolution at the General Meeting of Shareholders.
Individual compensation is then determined within the boundsof the upper limit through consultation with auditors.

Compensation for Directors
Compensation for the Companyʼs directors consists of fixedmonthly compensation, a monetary executive bonus, and a sharebonus in the form of stock options, etc.
Based on guidelines that take into account individualsʼ roles
and responsibilities, the Representative Director, President andExecutive Officer draws up a proposal regarding the amount of
fixed compensation after taking into consideration the businessresults of the previous fiscal year, the management plan of
the current fiscal year, and the roles of each director, etc. A
request for consultation is submitted to the Nomination andCompensation Advisory Committee, and then reported to theBoard of Directors, which deliberates on the matter and makes
the final decision.
Executive bonuses are paid based on their extent to whichinternal Executive Directorsʼ performance targets have been
met to enhance their motivation for improving the Companyʼs
performance in each (consolidated) fiscal year. The three indicesof consolidated sales, consolidated net sales, and profit (loss)
attributable to owners of parent ("three indices") are used.
Regarding the question of whether executive bonuses are paid,
and the total amount paid, the Representative Director, President
and Executive Officer draws up a proposal based on the extent
to which the relevant three indices have been achieved in each(consolidated) fiscal year. If it is determined that executive bonuses
will be paid that year, the Representative Director, President andExecutive Officer draws up a proposal regarding the amountto be paid to each individual based on the roles and results ofeach individual executive director (including their contributions
to solving sustainability issues). The proposal for consultation
is submitted to the Nomination and Compensation Advisory
Committee, and then reported to the Board of Directors, which
deliberates on the matter and makes the final decision.
With the aim of sharing value with shareholders whileproviding increased incentive to build corporate value overthe medium to long term and enhance shareholder value,stock options are granted to executive directors. However, thedecision as to whether to grant stock options, and the period,is determined after comparing the impact of the necessary
expenses on performance with the anticipated incentive effect.
The Representative Director, President and Executive Officer

comprises monthly compensation in monetary terms.
The amount of basic compensation is determined by discussion
among the auditors at the Audit & Supervisory Board meetingtaking into consideration the roles and responsibilities of each
auditor and based on guidelines stipulated in advance.
In the event of bonuses to auditors, these are paid after gaining
approval at the General Meeting of Shareholders.

draws up a proposal regarding the amount of stock options tobe granted to each individual executive director based on theroles and results of each individual executive director, within theupper limit (in terms of the value of shares or number of shares)
set by the Shareholders Meeting. A request for consultation
is submitted to the Nomination and Compensation Advisory
Committee, and then reported to the Board of Directors, which
deliberates on the matter and makes the final decision.
As a general rule, internal directors are obliged to contributea certain amount or more of their basic compensation to the
Executive Shareholdersʼ Association every month as stipulated
by internal rules. Yokowo shares accumulated by the Executive
Shareholdersʼ Association shall be transferred under the nameof the individual executive directors every six months (in late
September and late March).
In principle, Directors shall hold their shares and not sell themwhile holding their position of director.
Regarding the ratio of executive directorsʼ overall compensation to
be held by each category of compensation, this shall be determinedbased on the roles and responsibilities of each executive director andon trends in compensation at other companies with a similar scale ofoperation to Yokowo. In the case where stock options are granted up
to the specified upper limit, the target ratios for each of the categories
of compensation are: basic compensation: 60%; performance-linked
compensation:20%; compensation in the form of shares: 20%.

▼ Compensation Figures（FY2022）(million yen)

Total amount of remuneration by type
Basiccompensation
Directors(outside)
Auditors(outside)
Total(outside)

Executive
bonus

194
（18）
42
（21）
237
（39）

Compensationin the form ofshares

―
（―）
―
（―）
―
（―）

14
（―）
―
（―）
14
（―）

Total

Upper Limit(annual)

209
（18）
42
（21）
252
（39）

280
（40）
60

Company Officers Skill Matrix
Among the various areas of expertise and experience possessedby each current Director and Member of the Audit & Supervisory
Board, up to four items are listed for which there are particularly
strong expectations regarding that individualʼs ability to utilize
these items effectively in the performance of their duties. The
table below thus does not show the entirety of the specialist
experience and experience of each individual.

Compensation for Auditors
Compensation for auditors is limited to basic compensation, which▼ Company Officers Skill Matrix

Specialist Expertise and Experience
Legal affairs
and riskmanagement

Name

Position

Corporate
management

ESG andsustainability

Takayuki Tokuma

Representative Director,
President and Executive Officer
Director, Senior Managing
Executive Officer
Director, Managing Executive
Officer
Director, Managing Executive
Officer

〇

〇

〇

〇

〇

〇

〇

〇

Koichi Fukagawa
Kenji Yokoo
Naohito Odani

Kuniko Muramatsu Outside Director
Makoto Tobari
Byeongwoo Kang
Kenji Kamachi
Toshiaki Tochigi
Hisao Tsunoda
Emi Yoneda

Outside Director

Human
resources andlabor affairs

〇

〇

〇

〇

〇

〇

〇
〇
〇
〇
〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇
〇

〇

〇

〇

TechnologicalInternationality
strategy〇〇

Outside Director
Audit & Supervisory Board
MemberOutside Audit & Supervisory
Board Member
Outside Audit & Supervisory
Board Member
Outside Audit & Supervisory
Board Member

Finance and
M&A

〇
〇

〇

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ESG Report

Directors, Auditors and Executive Officers(As of June 28, 2023)

Audit & Supervisory
Board Members

Board of Directors

Takayuki
TokumaKoichi
Fukagawa

Kenji
Yokoo

Naohito
Odani

Kenji
KamachiToshiakiTochigi

Representative Director,
President and Executive
Officer

Director,
Senior Managing
Executive Officer

Director,
Managing Executive
Officer

Director,
Managing Executive
Officer

Audit & Supervisory
Board Member

Outside Audit &Supervisory Board
MemberAttendance rate at
Board of Directors
Meetings:
17/17 times (100％)
Number of Company
shares held:
290,038 shares

Attendance rate at
Board of Directors
Meetings:
17/17 times (100%)
Number of Company
shares held:
52,948 shares

Attendance rate at
Board of Directors
Meetings:
17/17 times (100%)
Number of Company
shares held:
91,869 shares

Attendance rate at
Board of Directors
Meetings:
12/13 times (92%)
Number of Company
shares held:
8,841 shares

KunikoMuramatsu

MakotoTobari

Outside Director

Outside Director

Attendance rate at
Board of Directors
Meetings:
16/17 times (94%)
Number of Company
shares held:
0 shares

Attendance rate at
Board of Directors
Meetings:
13/13 times (100%)
Number of Company
shares held:
0 sharesByeongwoo
Kang
Outside Director
Attendance rate at
Board of Directors
Meetings:− (New appointment)
Number of Company
shares held:
0 shares

Attendance rate at
Board of Directors
Meetings:
13/13 times (100%)
Attendance rate at
Audit & Supervisory
Board Meetings:
13/13 times (100%)
Number of Company
shares held:
2,383 shares

Attendance rate at
Board of Directors
Meetings:
17/17 times (100%)
Attendance rate at
Audit & Supervisory
Board Meetings:
17/17 times (100%)
Number of Company
shares held:
0 sharesEmi
YonedaOutside Audit &Supervisory Board
MemberOutside Audit &Supervisory Board
MemberAttendance rate at
Board of Directors
Meetings:
13/13 times (100%)
Attendance rate at
Audit & Supervisory
Board Meetings:
13/13 times (100%)
Number of Company
shares held:
0 shares

Attendance rate at
Board of Directors
Meetings:
13/13 times (100%)
Attendance rate at
Audit & Supervisory
Board Meetings:
13/13 times (100%)
Number of Company
shares held:
0 shares

Executive Officers
President and Executive Officer
Senior Managing Executive Officer

Executive Officer cum Deputy General Manager,
Technical H.Q., cum General Manager, VCCS Engineering
Management Division cum General Manager,
Human Resource Development Center

Koichi Fukagawa

Tsuyoshi Sakata

Managing Executive Officer cum General Manager,
Incubation Center

Executive Officer cum General Manager, Advanced Devices
Business Promotion Division, Incubation Center

Takayuki Tokuma

Kenji Yokoo

Motoaki Matsuura

Managing Executive Officer cum General Manager,
Technical H.Q.

Executive Officer cum General Manager,
CTC Business Division

Managing Executive Officer cum General Manager,
VCCS Overseas Plant

Executive Officer cum Chief Officer,
Management Planning H.Q.

Managing Executive Officer cum General Manager,
Tomioka Plant

Executive Officer cum Chief Officer, Core Technology
Development H.Q.

Naohito Odani

Katsuhei Yanagisawa
Mitsuaki Okazaki

Naoki Kawata

Tatsuo Tsunoda

In accordance with the CSR Code of Conduct, the Yokowo Group will comply with laws and regulations in good faithand engage in fair corporate activities on a daily basis, and will also fulfill the social responsibilities of a corporation
by responding appropriately to risks through our Risk Management System and efforts to continuously improve ourrisk management performance.

Approaches to Compliance

Initiatives to Improve Risk Management

The Yokowo Group will contribute to the development of asustainable society by engaging in activities that impact on theeconomy, the environment, and society in a transparent and highly
ethical manner in order to earn the trust of stakeholders with theconstant aim of enhancing corporate value.

The Yokowo Group has established and maintains the Risk
Management System (RMS), which conducts identification,
analysis, planning, implementation, evaluation, improvement, andreview for diversifying loss risks in order to ensure more stable andsmoother business activities. Under the Risk Management Rules, wehave established risk management policies and risk management
guidelines, and we are striving to continually enhance the RMS.
We are also working to identify risks at an early stage, share andanalyze them and to formulate and implement countermeasures,with the establishment of the Business Risk Management
Committee (see the Corporate Governance page on p.34).

Initiatives to Improve ComplianceTo ensure compliance, the Yokowo Group works to firmly establish
the CSR Code of Conduct (available in Japanese, English, andChinese), which sets out the actions to be taken by the Groupʼsofficers and employees. We are working in order that they are fully
aware of this Code, and that this is well established.
Furthermore, in April 2023 we established the Yokowo Group
Human Rights Policy, and in August of the same year revised the
CSR Code of Conduct in accordance with the Responsible Business
Alliance (RBA) code of conduct.
Additionally, to further raise awareness of compliance, we areconducting compliance-related e-learning programs for officers
and employees at our Group and at subsidiaries in Japan, and arealso conducting e-learning for overseas subsidiaries as well on theprevention of global bribery and corruption. We have also put inplace a whistleblowing system as well as an external hotline topromptly detect and correct any violations of laws and regulations.
Furthermore, under the CSR Code of Conduct, we have establishedand started utilization of regulations compliant with anti-bribery
regulations in each country. The Internal Audit Department also
audits business processes in each department at Yokowo and at
subsidiaries in Japan and overseas, providing guidance on detecting
and preventing misconduct and improving processes.
In FY2022, there were no compliance violations.

Executive Officer cum General Manager,
MD Business Division▼ Schematic diagram showing the internal whistleblowing system
Contact points for reports andrequests for consultation

External consultation window

Responsible department within
the Company

Demonstrating concern for
the feelings of the reporting party

Clarifying the reporting
party’s intent

Collating the issues
Support for exploring solutions

Investigations and interviews

Consultation
with external
experts

Clarifying the reporting
party’s intent(1) Handling the matter outside the Company(2) Submitting a non-anonymous report to
the Company(3) Submitting an anonymous report to theCompany
Where the reporting
party does not wish
to have the matterhandled by theCompany

Selection of a strategy for resolving
the issue based on the reporting
party’s own insights

Where theReporting party
wishes to havethe matterhandled by theCompany

Resolving the issue

Hisao
TsunodaCompliance and Risk Management

Examination to resolve the issue
and/or decision on disposition by
the Rewards and Penalties Committee

Reoccurrence prevention
and follow-up

Koichi Tachikawa

Executive Officer cum Chief Officer,
SCI (Sustainability & Corporate Integrity) Promotion
H.Q. cum General Manager, Sustainability Promotion
Department cum General Manager,
Corporate Secretary Department cum General Manager,
Public Relations & Equity Department

Toshihisa Tagaya

Executive Officer cum General Manager,
VCCS Business Division

Syunichi Nagaoka

Executive Officer cum Chief Officer,
Production Process Innovation H.Q.

Takeshi Akao

Tomohisa Hoshino

Approaches to Risk Management
Aware of the potential impact of risk on our business activities,
besides complying with relevant laws and regulations, theYokowo Group also strives to fulfill our social responsibility andput organizational operation on a stable footing by responding
appropriately to risk, through measures to continually improve ourrisk management systems and performance.

* For details regarding the reasons for appointment of individual Directors and Audit & Supervisory Board Members, please visit our official corporate website.
https://www.yokowo.co.jp/english/company/csr/governance.html

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ESG Report

Information Security

Environment

In our current networked era, we are seeing increasing worldwide demand for strengthened information security.
The Yokowo Group constantly recognizes the importance of all the information assets and we promote information
security activities globally to meet these requirements.

The Yokowo Group recognizes that conducting business activities in harmony with the global environment is an essential
responsibility for a corporation. The Yokowo Group continues to implement a range of Group-wide environmental
preservation activities and address climate change based upon defined environmental policies in order that we canpass on our irreplaceable global environment to future generations.

Approaches to Information Security
The Yokowo Group aims to ensure that it always recognizes
the importance of all information assets handled thereby,
including information provided by its customers and business
partners, in order that the Group may continue to be a trusted
member of society. To this end, the Group has stipulated andimplemented its Information Security Policy in order to prevent
all improper disclosure, divulgence, and unauthorized use ofsuch information assets.

Information Security Policy (Overview)
1. Compliance
2. Framework
3. Management of Information Assets
4. Training
5. Preventing and Responding to Incidents

and is working together with the entire Group to advance its
information security activities.

Information Security Education
The Group considers the basis for information security to be foreach employee to have a high level of awareness with regard
to information management, and works to keep all officers andemployees (including temporary staff) well informed regarding
laws and regulations as well as Group policy and rules, etc.
governing information security.
Furthermore, Yokowo implements various activities in order
to increase awareness of information management, such as
carrying out multiple yearly e-learning sessions on information
security, and issuing all employees with an Information Security
Handbook that details practices which should be followed during
the course of everyday duties.

Enacted: April 1, 2013

* The full text of the Information Security Policy can be viewed on the
Yokowo website.
https://www.yokowo.co.jp/english/company/csr/security.html▼ Information Security Management Framework▼ ISO 27001 Certification Status
2014

YOKOWO CO., LTD., 3 Japanese subsidiaries

2016

Chinese subsidiaries (3 locations)

2017

Malaysia subsidiary

2021

German and Vietnamese subsidiaries

Chief Information Security Officer, as CISO
Chairman, Information Security Committee

Information Security Officer
Secretary General, Information Security Committee

Information Security Manager
General Managers, Chief Officers,
Managing Directors

Information Security Administrator
Assigned by General Managers, Chief Officers,
Managing Directors
By Business Div., Headquarters, Department, Section

Information Security Committee Office
Assigned by CISO

Yokowo CSIRT
Assigned by CSIO
Assigned by all companies

Enhancement of Information Security
Under the Groupʼs Information Security Policy, Yokowo
recognizes the management of information security as oneof the most important issues in business management. In
order to manage the information assets appropriately, it hasconstructed an information security management system (ISMS),

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Yokowo 2023 Integrated Report

Protection of Confidential Information
Under its Information Security Policy, the Group has establishedconfidentiality rules for the protection of confidential
information, and disseminated these to the Group and all
suppliers, etc. engaged in Yokowoʼs business. Throughcompliance with these rules, the Group handles and protects,
both strictly and appropriately, all information assets possessedby Yokowo, and information disclosed to it by its customers. In
addition, it is our social responsibility to promote cyber security
measures not only within our group but throughout the supply
chain as a whole, and as such we are working to confirm andenhance the status of security measures at our suppliers andsub-suppliers. As of April 2022, Yokowo has decided to prohibit
the use of password-protected compressed files. In FY2022,
there were no specific complaints regarding either violations ofcustomer privacy, or losses of customer data.

Approaches to the Environment
Environmental Policy

Action Guidelines

Today, when Japan and the rest of theworld are starting to make a serious
effort to realize carbon neutrality by
2050, Yokowo is also responding to
the demands of our stakeholders andsociety by formulating more concretemeasures to address climate change,
and working actively to implement
them. Reflecting this stance, we support
the recommendations of The Task Forceon Climate-related Financial Disclosures(TCFD), and we are implementing
specific initiatives to achieve the targetof reducing greenhouse gas emissions
from our plants (Scope 1 and 2) by
35% by FY2030, compared to FY2014,
and promote specific climate-related
information disclosure.
Yokowo is also committed to helping
to create a rich natural environment.
We seek to do this through ourenvironmental management systemand through activities designed toachieve continuous improvements inenvironmental performance. As partof our commitment, we take into
consideration the environmental impactof our business activities and comply
with all relevant environmental laws,
regulations, and guidelines, as well aswith each customerʼs specific guidelines.

1. Yokowo supports the TCFD recommendations, and besides
formulating and implementing concrete measures to achieve thetarget of reducing greenhouse gas emissions at our plants (Scope
1 and 2) by 35% by FY2030, compared to FY2014, we will also
be disclosing details of the measures taken, through the Carbon
Disclosure Project (CDP) framework.
2. Yokowo will continuously and actively promote energy saving,
resource conservation, and recycling to contribute to theprotection of the global environment.
3. In respect of chemical substances which are harmful to boththe environment and human body, Yokowo will prevent
environmental pollution by implementing preventive measuresand action plan, which include those for the case of abnormal andemergency operation, and will minimize the use of hazardous
chemical substances.
4. Yokowo will comply with all relevant environmental laws,
regulations, and each customerʼs specific requirements, and intend
to enhance our environmental management by our original
internal standards.
5. Yokowo will set objectives and goals for our environmental
activities and also improve our environmental management system
continuously by periodically reviewing the objectives and goals.
6. Through in-house education and publicity, Yokowo will promote
all the employeesʼ recognition of involvement in environmental
preservation and will make these activities take root as daily duties.
7. Yokowo ensures that all the employees including those ofaffiliated companies are fully aware of the environmental policies,
and will disclose them to the public on request.
8. Yokowo will contribute to the development of a sustainable society
by considering the impact on biodiversity in all its business activities.
Enacted: June 1, 2005 Revised: October 15, 2021

Environmental Management Systems

Issues and Results of Activities

ISO 14001 Certification

The Yokowo Group identified four issues that need effort ̶
addressing climate change, management of water resources,
resource recycling, and zero hazardous chemical substances
usage.For these issues, Yokowo sets annual goals and activities
to be achieved.
At a meeting of the Board of Directors held in October 2021,
Yokowo decided to express its support for the recommendationsof the TCFD, made revisions to the Action Guidelines, anddisclosed the status of these efforts through CDP.

Since its individual production bases received ISO 14001
certification starting in 1998, the Yokowo Group has continued
with its work in environmental activities. Furthermore, theEnvironmental Management Committee at each plant has
been central in setting objectives and targets, and in promoting
initiatives in all workplaces aimed at achieving these.
* Please see our website for more details on the status of ISO14001
Certification Acquisitions.
https://www.yokowo.co.jp/english/company/csr/environment.html

Yokowo 2023 Integrated Report40

ESG Report

Targets
Responses toclimate change

Reduce greenhouse gas (GHG) emissions(Scope 1 and 2) by 35% by FY2030
compared to FY2014, aimed at realizing
carbon neutrality by 2050

Water resource
management

Reduce water consumption by 1% fromthe previous year

Waste reduction &recycling

Reduce waste emissions from businessactivities, and achieve a recycling rate of
80% or above

Chemical substancemanagement &pollution prevention

Promote zero hazardous chemical
substances usage for those chemicals thathave a harmful effect on the environmentand human health▼ GHG emissions (including Scope 3*3)

Waste reduction & recycling

GHG emissions (t-CO2) *The Yokowo Groupʼs main products are electronic components,
and the main types of waste that we generate are metal andplastic waste, and waste cutting oil, that are generated during the
production processes. With regard to these main types of waste,
we are working to conserve resources. As well as promoting a
reduction in the quantities of waste generated by our businessactivities, we have also set a recycling rate of at least 80% as atarget. The inclusion of Yokowo Vietnam in the data aggregationfrom FY2020 onwards has led to an increase in the recycling rate.

1300,000
200,000
100,000

Addressing Climate ChangeWith the aim of reducing direct greenhouse gas emissions(Scope 1 and 2), Yokowo is implementing plans for the adoptionof renewable energy at our plants in Japan (in Tomioka City,
Gunma Prefecture), China, Vietnam, and Malaysia, which are ourCompanyʼs main sources of greenhouse gas emissions. In October
2022, we installed a photovoltaic power generation system at ourVietnam Plant using a bilateral credit system, and in June 2023,
we installed the second solar panel system at our new Micro
Process R&D Center at our main plant̶the Tomioka plant (Gunma
Prefecture). Furthermore, as another initiative, we have introduced
solar-powered electric vehicle charging facilities at the Tomioka
Plant for the use company cars as well as commutersʼ and visitorsʼ
cars, and are implementing a plan to switch to commuting bytrain, by attracting the placement of a railway station.
As of 2020, the Yokowo Group had implemented a varietyof activities directed towards meeting the goal of a year-on-year
1% reduction in the greenhouse gas (GHG) emission factor,
however we revised these targets in 2021.

20,3710

20,00015,00020,371

0.372

0.334

0.4

0.334

0.280

10,000

0.2
0.1

0

0.0

2018

2019

2020

Yokowo 2023 Integrated Report

2021

2022
(FY)

Emission factor

87.1

1,600
1,400

1,150

1,250

344,632

8
7

5.687

6

4.722

6.134

3.892

283,178

287,500
275,000

3.513

273,845
260,179

262,5002018■ Water usage

2019

85.2

1,500

90
70.5

1,430

80
70

1,056

60
50

59.4

40
30

400

20

200
0

10
2018
■ Waste2019
2020
Recycling rate

The Group is taking the following actions as regards chemical
substances contained in its products.

Support for REACH regulations*6
Recycling rate (%)*5600

Usage rate (water usage / sales)*4

335,868

53.8

Handling of chemical substances
contained in products

2021

2022

0

(FY)

*5 The recycling rate is the share of waste handed over to recycling rms.
We are experimenting with the use of recycled plastic in plastic molding
processes. We are also working on the development of original recycling
technology for cutting oil, in collaboration with a local vocational college.

In order to comply with the obligation to communicate
information regarding substances of very high concern (SVHC)*7
and the content of regulations regarding restricted substances,
the Group obtains and manages information concerning chemical
substances obtained through our suppliers.
*6 European Union (EU) regulations on the registration, evaluation,authorization and restriction of chemicals*7 Chemical substances stipulated as requiring authorization and registration
under the REACH regulations

Compliance with RoHS directives*8
We check for RoHS compliance of all delivered parts and materials,
and are establishing an internal inspection system.
*8 Directives relating to restrictions on usage of hazardous substances in electricaland electronic equipment

Chemical substance management &pollution prevention

Water usage (m3)250,000

5,000

Total GHG emissions（■Scope1 ■Scope2）

41

0.3

0.316

Waste (t)800

▼ Water usage and usage rates

300,000

20,007(FY)

Of the water used within the Yokowo Group, the majority is fordomestic-type uses; because of the characteristics of our products,
hardly any water is used in the production processes. We areworking to achieve our goal of a year-on-year 1% reduction inwater consumption, measured by per unit of sales.
Additionally, we are monitoring the quality of plant wastewaterusing our internal standards, which are more rigorous thanlegal requirements. At the Tomioka plant, we are recovering all
hazardous chemical substances in discharge from our galvanization
processes, and have achieved zero emissions into public waterways.

0.5

20,222

2022

Management of Water Resources

312,500

21,853

2018
2019
2020
2021
Total GHG emissions（■Scope1・2 ■Scope3）

1,000

Emission factor (CO2 emissions/sales value)*2

21,10430,001

1,200

325,000

25,00020,007▼ Quantity of waste and recycling rate

337,500▼ GHG emissions and emission factor

20,222*1 Electricity CO2 conversion factor is calculated using the following:
Domestic: TEPCO Energy Partner, Inc Basic Emission Factor
Overseas: Until 2021, IEA Official Factor, 2022 uses the market coefficient*2 Emission factor: GHG emissions per million yen of sales*3 From FY2022, we started detailed Scope3 calculations.

350,000

GHG emissions (t-CO2)*1

380,456

400,000

Through these initiatives, we are establishing preventive
measures and response plans, including those for abnormal
or emergency situations. Additionally, we are preventing
environmental pollution, and promoting zero hazardous chemical
substances usage for those chemicals that have a harmful effecton the environment and human health.

2020
Usage rate

2021

*4 Emission factor: Water usage per million yen of sales

5
4
3
2
1

2022
(FY)

0

In the Yokowo Group, the Environmental Action Guidelines
include compliance with relevant environmental laws andregulations, as well as with each customerʼs specific guidelines.
Based on the above, we have established chemical substancemanagement standards (below: “Standards”), are clarifying
management targets for products manufactured and sold by
the Group as well as for chemical substances contained in
products, parts, and materials, and are ensuring that these are
well known within the Group and by business partners, andworking to improve environmental quality. The Standards specify
management methods for chemical substances right fromreceipt of raw materials and parts through to shipment.
We also place an emphasis on sharing information with
suppliers regarding the constituent components used in our
products. As well as conducting rigorous checks of these using
ICP analyzers and fluorescent X-ray spectrometer, we provide
products that meet the changing chemical substance regulatory
requirements of worldwide automobile and electronics
manufacturers.

Measurement of components (energy dispersive fluorescent X-ray spectrometer)

TopicsIn July 2023, we received third-party certification(scope 1 and 2) for greenhouse gas emissions.
In the future, we will further expand coverageof our understanding GHG emissions, including
Scope 3 emissions, and strive to further enhance
information disclosure.

Yokowo 2023 Integrated Report

42

ESG Report

Employees
The Yokowo Group aims to promote and advance diversity and inclusion among our employees and strives to create arewarding and attractive workplace environment with the aim to “Be a company where employees feel comfortablebeing employed, and which ensures that employeesʼ families are happy for them to work there.”

Further reforms to human resources system
to encourage proactive employee growth

Basic Data on Employees▼ Number of Employees
Yokowo total
Total employees (persons)＊1

Breakdown bybusiness segment

Europe andthe U.S.

Japan

Asia

8,304

1,504

79

6,721

VCCS

6,087

264

53

5,770

CTC

961

406

14

541

FC

406

78

10

318

MD

300

299

1

0

Other employees

550

457

1

92

*1 Includes temporary staff

Performance Evaluation

In 1998, given external factors such as Japanʼs aging society
and declining birthrate as well as advancing globalization,
we reformed our personnel system, replacing the former job
qualification system with a role-based pay system for managers,
and a job-grade system for general employees. Since theintroduction of this system, we have continued its operationin order that each employee can transform themselves into a
specialist by using a dynamic, competitive system that rewards
work value, role responsibility, and results in line with changing
employee roles in the midst of a changing business environment.
Also, as a global specialist company with a highly competitive
human resources structure, our aim is to have our employees
achieve self-fulfillment through their own efforts. To achieve theabove, we are using the SAP SuccessFactors talent management
system introduced in 2022.

Engagement▼ Recruitment and TurnoverComposition of Employees
The main production bases in each segment are China, Vietnam,
and the Philippines for the VCCS segment, Malaysia, Vietnam,
and Japan for the CTC segment, Malaysia and China for the
Fine Connector business in the FC/MD segment, and Japanfor the Medical Device business in that same segment. Our
production bases are concentrated in Asia. In particular, there area large number of employees in China and Vietnam, which areproduction bases for the VCCS segment.

▼Average age and years of service

YOKOWO CO., LTD.

Total number of
new recruitments

79

Male

63

Female16

Total number of
job leavers

26

Male

21

Female5

YOKOWO CO., LTD.

Average age

40.7

Male

40.5

Female41.9

Average years ofservice

11.7

Male

11.3

Female15.2

Work-Life Balance

Use of childcare leave
Yokowo has established a childcare leave system to support
employees in balancing work with childcare. In FY2022, 23.1%
of male, and 100% of female employees took childcare leave.

Other work-life balance measures■ Hourly paid leave■ Special COVID-19 vaccination leave■ Long service incentive system (newly established in FY2023)

General manager

New general manager training

Deputy General
Manager

New deputy general manager training

Manager

New manager training

Assistant Manager

Mid-career employee (leader) training

MemberYoung employee training

Induction

Self-education

Specialty training

Common training

Next-generation leader
selective training

Sales
department
training

Technology
department
training

Tentative assignment/basic training

Production
department
training

Administration
department
training

Self-education
Online education (position-specific) andlanguage training

number of annual paid leave

Position-specific training

Training on current affairs

In FY2022, the annual paid leave utilization rate was 71.5%.

Yokowo 2023 Integrated Report

We have established an “integrated human resource
development system starting with new employees” in order
to cultivate “globally-minded human resources” who will
support the full-scale globalization of our business and toactively promote the strengthening of management at alllevels. In addition to training that is common to all employees,
we provide diverse position-specific and specialty training
to encourage employee growth. In the future, Yokowo will
create a “new training system” to better support employeesʼ
independence in their skill and career development, and aim tobecome a company that can provide more specialized training
opportunities to employees.
Furthermore, in FY2023 we established the new Human
Resource Development Center. As well as having an oversight
position to raise the job performance of all officers and employees,
and to establish a competitive advantage in the ability of top-level
talent to implement advanced technologies, this is responsible
for building an education system covering management andbusiness operations. We are currently compiling human resources
development plans for each department, and moving forwardwith the development of specific training plans.

Global adaptation training(cross-cultural adaptation, etc.)

The Group has established a nursing care leave system to support
employees in balancing work with nursing care. In FY2022, noemployees took nursing care leave.

Non-management
position

We promote the use of annual paid leave aiming for an annual paid
leave utilization rate*2 of 70%, which is the target for FY2022.

Management
position

Use of nursing care leave

43

Human Resources Development▼ Conceptual Diagram of Training System

Percentage of annual paid leave taken*2 Number of annual paid leave days takendays newly granted each fiscal year

Yokowo conducted its first engagement survey in FY2022. In
addition to understanding the degree of congruence between
our direction (Purpose, Vision, and Values) indicated in our
corporate philosophy and individual employees directions(diverse self-actualization), this has as its objective understanding
areas for improvement in the workplace environment, so that
the Group can achieve sustainable growth.
We will improve workplace environments in each department
as indicated through these results, then review and constructinternal mechanisms. Looking forward, we will promote employee
engagement in order that every employee has trust in thecompany and in our organization, and that they are motivated towork toward both personal and corporate growth.

At the beginning of each fiscal year, every employee preparesa job description in consultation with their superiors which
includes their duties and goals, and carries out their duties.
Superiors evaluate employee performance every six months andhold interviews to provide feedback on the results to employees.

Online education (support for occupational training and acquisition of qualifications)

Yokowo 2023 Integrated Report

44

ESG Report

Diversity
Through the promotion of DEI (Diversity, Equity, and Inclusion), the Yokowo Group is promoting the recruitment
and development of human resources without regard to nationality, gender, or age, with the aim of becoming Team
Yokowo, a “sustainably evolving company.”

Approaches to Diversity
The Yokowo Group hires and trains diverse human resources,
irrespective of nationality, gender, or age, and strives to create
an employee-friendly workplace where there is respect forindividuality and fair and equitable treatment to enable eachand every employee to achieve their full potential.

Concrete Measures Relating toDiversity
The Yokowo Group treats “diversity and inclusion” as one of ourmanagement strategies. We are striving to become a company
where employees with the diverse values of global Yokowo areable to come together and work together on a global basis toachieve their full potential. In terms of diversity, we are steadily
promoting measures based on the TISP Project to expand thefield of activities of non-Japanese employees. However, there arestill many issues to be addressed in increasing the ratio of female
leaders and the ratio of employees with disabilities.
In 2021, the revised Child Care and Family Care Leave Law
was enacted, requiring companies to encourage male employees
to take childcare leave. The ratio of male employees taking thisin FY2021 was 5.3% and in FY2022 23.1%, showing a definite
uptake, but we feel there is more progress to be made.
In order to clarify these issues in our organizational culture
and systems, and to share the direction for improvement andreform, Yokowo is holding “roundtable meetings” where theemployees concerned can frankly exchange opinions, and so thatdiverse personnel are able to work comfortably, we are putting
in place initiatives such as making head office buildings and the“Micro Process R&D Center” research and development facility
at the Tomioka plant barrier-free, and installing a prayer room.

Promoting Active Participation by Women
Due to the fact that Yokowo is a manufacturing company, thenumber of permanent female employees hired is small, andthe ratio of female leaders is currently lower than that of male
employees due to the small pool of female employees. However,our goal is to increase the ratio of female leaders to at least thesame as that of male leaders. So that we can reach this goal,
we have started appointing women as outside directors andinto management positions. We are also taking steps to identify
gender-based wage gaps, and to reform the system to eliminate
any disparities.

45

Yokowo 2023 Integrated Report▼ Male-female wage gap
Percentage wage difference (%)
Executives

84.1

Supervisors (SV)*1

94.5

Creative (C)*

85.2

2

Technical (T)*112.4

Routine (R)*4−(No corresponding male employees)

3*1 Business management: Role that leads a team of a particular size, thatmanages overall promotion of the business, and that uses their high levels of
specialist knowledge and know-how to create high added value*2 Creative work: Role that performs creative work in order to acquire new
business opportunities*3 Vocational work: Role that performs specialized work of a defined type
*4 Basic work: Role that performs routine operations with fixed procedures andmethods▼ Percentage of female employees★
(persons)

1,000

600
400

16.3

14.9

800

665
11.1

17.8

764

710

11.5

12

10.7
8.3

7.2

2018

16

814

798

2019

2020

Number of YOKOWO CO., LTD. employees*

5

2021

Promoting Active Participation
by Senior Human Resources
In addition to the existing system of re-employment(reemployment after transfer to an affiliated company),
we established a new system to extend employment after
retirement at the age of 60 as permanent employees at our
Head Office in 2020 in order to promote the active participation
by senior human resources. This is subject to approval by the
Personnel Committee if the Company deems it necessary andthe employee agrees to do so for the purpose of transferring
technology to younger employees or utilizing proprietary
technology and know-how.This system also allows those whoare 65 years old or older to continue to playing an active role
under an outsourcing contract or consultant contract if theCompany deems it necessary and agrees with the individual.
Furthermore, we hold roundtable meetings for senior humanresources to further improve the system while incorporating
the opinions of the people concerned.

20

16.3

200
0

（％）

19.2

disabilities work without undue concern, but that employees canfurther deepen their knowledge.

8▼ Number of older employees re-employed★
（FY）

2018

2019

2020

2021

2022

(persons)

19

22

30

34

38

★: YOKOWO CO., LTD.

2022

(FY)
Percentage of female managers*6

Percentage of permanent female employees*7*5 Number of Yokowo Co., Ltd. employees: Does not include temporary staff*6 Overall ratio of female employees who are section heads or higher (excludes
specialists)*7 Ratio of female employees out of all employees★: YOKOWO CO., LTD.

Employment of People with Disabilities
Yokowo is a manufacturing company focusing on micro-precision
processing. As such, we have not made progress on hiring people
with disabilities, and we have not met the legally mandated
employment rate. Nevertheless, from the perspective of the SDGs,
we have set a goal to at least double the employment rate ofpeople with disabilities compared to the legally mandated rate.
In order to achieve this goal, we determined the need to develop
both tangible and intangible company-wide infrastructure anddevelopment of jobs that would enable people with disabilities toplay active roles, and set up the “Project Team for Establishing aSpecial Subsidiary.”
Yokowo Future-Oriented Support was established in FY2022,
and certified as a special subsidiary in March 2023. By introducing
public health nurses and holding supporter training courses
for employees, we are ensuring that not only can people withAt the Yokowo Group, we are promoting the “TISP (Tomioka
International Specialist Park) Project” as a central part of ourdiversity and inclusion initiatives.
This project brings together specialists from around theworld (in product design, production engineering, elemental
technologies, quality assurance, production control, etc.) to ourmain plant̶the Tomioka plant (Gunma Prefecture).
Hiring criteria place no particular requirements as regards
Japanese conversational ability, and have a focus on expertisefor midcareer hires, and potential for new graduates. Looking
forward, we aim to bring together 120 foreign specialists
centered around the Tomioka plant. With this project, we are
actively recruiting foreign employees living in Japan, and thoseliving overseas. In particular at our main production bases in China,
Vietnam, and Malaysia, we have in place a multi-year training
program in Japan for new graduate hires who have graduatedfrom local universities in those countries. For these trainees, wecreate an individualized CDP (Career Development Plan) with which
we provide systematic human resource training, and many of the
trainees who have completed their training in Japan return to workin their own countries.
▼ Changes in TISP human resources★
(persons)

80

66

4
0

TISP Project

60

Strengthened Mid-career Hiring
The Yokowo Group corporate vision incorporates the message
that “as Team Yokowo, by creating new products that40

incorporate cutting-edge advancements based upon the Groupʼs
proprietary technology, we want to be a company that while
evolving, achieves persistent growth.”
The Yokowo Group in principle enhances our workforce byhiring new graduates, however recent years have seen an increasein the ratio of mid-career hires supported by strong businessperformance. We are bringing together all employees who
sympathize with this message, regardless of new graduate or midcareer hires, irrespective of gender, age, or nationality.

20▼ Changes in new graduate hires and mid-career hires★
（FY）

2018

2019

2020

2021

2022

New graduate hires

20

18

22

28

22

Mid-career hires

45

49

30

60

57

0

71

72

2021

2022

61

54

2018

2019

2020

★: YOKOWO CO., LTD.

(FY)

Introduction of secondary job system
In FY2022, we established a new secondary job system to help
employees achieve a variety of work styles, as one way to support
their autonomous career development. We will continue to lookfor ways to enhance the system itself, with the aim of supporting
employees in further bettering themselves.

★: YOKOWO CO., LTD.

Yokowo 2023 Integrated Report46

ESG Report

Human Rights

Occupational Health & Safety: OH & S

In the future, the Yokowo Group will continue listening to the diverse voices of our colleagues, seeking guidancefrom around the world. We will work together with all stakeholders who support our business activities, including
the families supporting our employees, our customers and business partners, and local communities, and we will also
always envision a better and more prosperous future, and aim to be an evolving, enduring company that continues
to create something new.

The Yokowo Group positions the management of health and safety of its employees as well as stakeholders in theGroupʼs activities as the top priority issue for its management, and will pursue a workplace where they are able to workwithout undue concern by always securing their safety, and that will strive to promote their mental and physical health.

Concepts around Human Rights

Performing Human Rights Due Diligence

In order to achieve our purpose, the Yokowo Group will
strive to respect human rights by placing respect̶having ahigh regard for diverse ranges of individuality and treading all
individuals with sincerity̶at the top of our sense of values at
all stages throughout the value chain.

Based upon the United Nationʼs Guiding Principles on Businessand Human Rights, the Yokowo Group has put in place asystem to identify, prevent, and mitigate adverse impacts onhuman rights through our business activities, to evaluate theeffectiveness of our efforts, and to both explain and disclose
information on how we have addressed concerns.

Human Rights Policy
So that we can realize respect for human rights, one of
the important themes in sustainability, the Yokowo Group
formulated the Yokowo Group Human Rights Policy on April,
2023. This policy illustrates our commitment and responsibility torespect the human rights of all stakeholders engaged with ourbusiness activities, based around the Yokowo Groupʼs purpose.
The Human Rights, Labor, and Ethics Management
Committee is responsible for this policyʼs operation under thesupervision of the Board of Directors.
* Refer to our corporate website for details regarding our Human Rights Policy.
https://www.yokowo.co.jp/english/company/csr/humanright.html▼ Human Rights, Labor, and Ethics Management Committee structure
Steering Committee
Chairperson
Committee Members (4)Complaint Handling Mechanisms
The Yokowo Group has in place a contact point for consultation
and reporting that can be used anonymously. If necessary, thisconsults with external experts in order to resolve issues and takemeasures to prevent recurrence. We have put in place a complainthandling mechanism to identify and address in a timely mannerhuman rights concerns raised by stakeholders.
▼ Complaint handling mechanism structure
Consultation

Company

External experts
AdviceContact

State concern with adverse
impact on human rights,
and file complaints

Project Leader

Internal stakeholders(employees)

Investigate received
concerns and complaints,
and provide relief measures,
thus creating credibility

External stakeholders(workers in the supply chain,
local residents, consumers,
NGOs, etc.)

Secretariat

Human Rights Education
Related departments including
Personnel Department,
General Affairs Department

Domestic Subsidiaries

In May 2023, the Group conducted training into “Responding tohuman rights, and sustainable corporate growth” for directors,
executive officers, and the Human Rights, Labor, and Ethics
Management Committee. In September of the same year, we
conducted training for management on the Yokowo Human Rights
Policy, promoting its spread and understanding witin the company.

Approaches to Occupational Healthand Safety
The Yokowo Group positions proper management of the safety,
peace of mind, and health of employees and other stakeholders
as a number one priority. In order to safeguard every individual
employee̶each of whom is vital to the Groupʼs business
continuity and growth̶we have formulated the Occupational
Health and Safety Policy, and we promote occupational healthand safety activities on the basis of this policy.
* Please see our website for more details on the Occupational Health and
Safety Policy of the Yokowo Group.
https://www.yokowo.co.jp/english/company/csr/safety.html

Occupational Health and Safety Framework
Yokowoʼs Health and Safety Promotion Committee meets on amonthly basis. The Committee is headed by senior management
and consisting of the OH&S managers and promoters of eachdepartment, who play a central role in practical health and safety
activities. The Committee strives to realize continued improvementof OH&S activities by sharing the progress made in individual
departmentsʼ OH&S action plans, the results of monthly OH&S
inspections, and details of occupational accidents and the remedial
measures taken. In addition, the Committee holds monthly
meetings to provide a venue for talks between its members, bothfrom labor and management, with the participation of occupational
physicians, etc., as required by law. The Risk Assessment Committee
evaluates remedial measures when responding to unexpectedoccupational accidents. It discusses and confirms whether themeasures proposed by the department where the accident occurred
are effective from an objective viewpoint, and whether there are
any oversights in preventing reoccurrence.
In April 2021, the Occupational Health and Safety Section
was established within the General Affairs Department. This new
department aims to further expand measures that contributetowards OH&S, with a particular focus on promoting the activitiesof the various committees.
▼ Occupational Health and Safety Management Framework
Chief Occupational Health and Safety Management Officer
President & Executive Officer / General Manager, Tomioka Plant
General Managers, Health and Safety Management /Senior Health and Safety Management Officer
Occupational Health and
Safety Section

47

Yokowo 2023 Integrated Report

FY2020

FY2021

FY2022

Coverage

Frequency of occupational
accidents*1

0.59

2.20

1.02

Non-consolidated

No. of serious occupational
accidents*2

0

0

0

Consolidated(Japan)No. of occupational
accidents (accidents withlost work days)

2

3

2

Consolidated(Japan)*1 Frequency of occupational accidents: Number of occupational accidents leading toinjury or death per million working hours, indicating the frequency of accidents.
*2 No. of serious occupational accidents: Number of serious occupational
accidents resulting in permanent disability or death.

To Realize Improvements in
Occupational Health and Safety
Yokowo has constructed an occupational health and safety
management system (OHSMS), and is working to advance its OH&S
efforts as the entire Group under the OH&S Policy.
YOKOWO CO., LTD., including the following subsidiaries, has
acquired “ISO 45001” certification, the international standard for
occupational health and safety management systems.
▼ ISO 45001 Certification Status
2020

YOKOWO CO., LTD., domestic subsidiaries (3 companies)
Chinese subsidiaries (2 locations)* OHSAS 18001 certification was obtained in 2016 in Japan and in 2017 in China,
however this was transferred to ISO 45001 certification in August 2020.

The Key Pillars of the Promotion of
Occupational Health and Safety Activities
The Yokowo Group has designated safety, health and workstyleas the three key pillars of the annual plan for promotion ofoccupational health and safety. Based on these three key
pillars, each department carries out occupational health andsafety activities systematically after setting its own targets andperforming risk assessment.
Ideal Form

An energetic
workplace
Work
style

Healthy mind
and body
A healthy
Healthworkplace

SafetyHealth and Safety Committee
Health and Safety
Promotion Committee

Head Office, Tomioka Plant
Domestic Offices▼ Occurrence of Occupational Accidents Over the Past Three Years

Domestic Subsidiaries

Risk Assessment
Committee
Cooperative Company
in Tomioka Plant

A safe and secure workplace
Eliminate unsafe conditions
Eliminate unsafe behaviors

Follow rules / Self-management / Compliance

Yokowo 2023 Integrated Report48

ESG Report

Procurement

Local Communities

The Yokowo Group strives to engage in fair and equitable transactions with suppliers, and we are focusedon building equal partner relationships. We are working to transform our system away from a passive
procurement function towards more dynamic procurement.

Operating in a range of locales both within Japan and overseas, the Yokowo Group values our relationships withlocal communities, and is promoting multifaceted social action programs. As a company rooted in local communities,
we will contribute to their development, and towards achieving a sustainable society.

Approach to Procurement

On Contributing to Local Communities

Activities in Local Communities

As a member of local communities, the Yokowo Group is
promoting a range of social action programs. Focused around
activities grounded in the community, activities towards
achieving a sustainable society, and activities that contributeto community development, our aim is to develop alongside
local communities through initiatives that contribute to solving
societal issues.

Sports Classes

Besides striving to ensure fair and equitable transactions with our
suppliers, the Yokowo Group also aims to provide required goods
for corporate activities in the required time, at the required quality,
in the required location and at the required price, while promoting
proactive procurement activities that contribute towards theCompanyʼs sales and maximizing profitability. We not only comply
with all relevant laws and regulations, such as the Act against
Delay in Payment of Subcontract Proceeds, etc. to Subcontractors,
but also strive to fulfill our social responsibility within the supply
chain in order to build multilayered production bases and a reliablesupply network when undertaking day-to-day purchasing activities.

Details of the Business Policies
Cost Reduction■ Striving to reduce costs (principle cost)■ Ensuring that costs are set early (DFC)■ Thorough implementation of the principle ofSangenshugi̶the Three Actuals (the actual
place, the actual part, and the actual situation)

Enhanced BCP■ Stable procurement■ Supplier quality enhancement■ Fair and equitable selection of suppliers

Strengthening
Procurement
Capability■ Developing human resources and continuityof operations■ Compliance with relevant laws, ordinances,and specifications■ Consideration for the environment and forsociety

Basic Policies
Vision (future aspirations)

Aim to be a Purchasing H.Q. that can achieve proactive purchasing activities.
“Transformation from a passive to an active Purchasing H.Q.”

Mission (tasks to perform)

Provide required goods for corporate activities in the required time, at therequired quality, in the required location and at the required price, andcontribute towards the Company’s sales and maximizing profitability.

Policies (business policies)

Use Cost Reductions, Enhanced BCP, and Strengthening Procurement
Capabilities as basic policies to work as a Purchasing Professional.

Measures Relating to Procurement
Compliance with the Act against Delay inPayment of Subcontract Proceeds, Etc. to
Subcontractors (Subcontract Act)■ Having employees attend external seminars■ Implementation of internal education■ Responding to Japan Fair Trade Commission (JFTC)

questionnaire surveys■ Checks and inspections performed in day-to-day operations(negotiations, unit price setting, acceptance inspection, and payment)

Elimination of child labor, prohibited chemical
substances, and use of conflict minerals■ The requirement to eliminate child labor, use of prohibited chemical

substances, and use of conflict minerals is clearly stipulated in
the Code of Conduct for Business Transactions (and Agreement),
which was compiled as an annex when Yokowo revised its masteragreements pursuant to the revision of Japanʼs Civil Code49

Yokowo 2023 Integrated Report■ Surveys of the substances contained in mass-produced products

are being implemented at all Yokowo Group plants■ When launching production of a new model, suppliers are

required to provide data on the substances contained at the timeof the first sample inspection■ The prohibition on conflict minerals applies to materials that havecobalt, cassiterite, tungsten or gold as a raw material

Implementing Green Procurement
The Yokowo Group holds presentations for our suppliers on chemical
substances contained in products, and we implement environmental
assessment that includes constituent analysis of the items that
suppliers deliver. In addition, the master agreement that we sign with
suppliers includes provisions relating to not using harmful chemical
substances, our procurement activities prioritize purchasing items
that have a smaller environmental footprint, and product verificationis performed in collaboration with our Quality Assurance H.Q.

▼ Three Areas of Activities

Activities groundedin the community

Activities towards
achievinga sustainable society

Activities that
contribute tocommunity development

Also, in order that we can make steady contributions to dialogue
and development with local communities, In April 2022, the Social
Activity Promotion Section was established within the General
Affairs Department. At the same time we have formulated a policy
for community social contribution activities, and have started bypromoting activities in cooperation with municipal governments,
mainly in Tomioka City and Gunma Prefecture.

In February and August 2023, Yokowo held a sports event
inviting children from basketball teams at Tomioka City
elementary schools to the Yokowo Silk Arena Tomioka, a civic
gymnasium in Tomioka City with which we have a naming rights
agreement.
As well as having coaches and staff from the Gunma Crane
Thunders professional basketball team participate as instructors,
NPOs from Tomioka City and students from local high schools
also offered their help as volunteers.
The Yokowo Group is working together with local governmenton activities to interact with the local community through sport,
and to increase the number of people playing sport.

Tomioka Donto Festival
Every two years, the Tomioka Plant participates in the Tomioka
Donto Festival, a two-day festival characteristic of the region heldin the center of Tomioka City.
Many employees participated in the last festival held in
October 2022, enhancing exchanges with local residents throughthe “Odori Nagashi,” a 40-minute dance processing through thestreets of Tomioka City.

Policy for Community Social Contribution
Activities
We will listen to the voices of local residents, andimplement genuine initiatives and contribute to thehappiness of the community and society regarding
diverse issues so that we can be recognized as apartner.

Yokowo 2023 Integrated Report50