Social and Environmental Report2023

Editorial Policy

Contents
1 Editorial Policy/Contents

COSEL Co. Ltd., issued its first Environmental Report in 2000
and has reported its environmental protection activities eversince.
Since 2015, we have issued this CSR Report in order toenhance communication by providing our stakeholders with
reports not only on our environmental efforts but also on all of
our initiatives related to our corporate social responsibility(CSR).
Since 2022, we have planned and published the Social andEnvironmental Report, which features a wider range ofcontent to serve as an effective tool for communicating withstakeholders.
We will continue to enhance its content as a tool forcommunicating information on our initiatives while reflecting
the needs of the times.

3 Commitment of top management
4 Company Overview
7 Promotion of CSR activities
CSR in the COSEL GroupFY 2022 targets and results
11 Together with our customers
Quality assurance system
The Customer Support Structure
15 With Our Shareholders and Investors
Disclosure of Information to Shareholders
and Investor Relations

Reporting Period

17 With Our Clients

May 21, 2022, to May 20, 2023

19 With the Community
Community contribution activities

Referenced Guidelines

21 With Our Employees

ISO26000

Continual investment in human rights
Stabilization of employment
Diversity and Inclusion
Creating safe, healthy workplaces
Promotion of work-life balance
Creating fulfilling, rewarding workplaces
27 Environmental Management
Environmental Policy
Environmental Management System
Environmental education
Environmental goals and achievement state
33 Environmental impact reduction
Promoting Efforts toward a Zero-carbon
Society
Promoting a recycling-oriented society

Company building:Head office・R&D Center

Promotion of environmental management ofchemical substances
42 Governance system
Corporate governance system
Risk management
47 Messages from outside Directors
48 Sustainability Data

Company building:
Tateyama Factory
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COSEL Co., Ltd. Social and Environmental Report 2023

Linkage between the Sustainable Development Goals (SDGs)
and each pageThe linkage between the Sustainable Development Goals (SDGs) and each page of this Report is shown below.

Linkage between the SDGs and each page

※The size of the icon in the title of each page indicates the strength of the relationship to the SDGs.

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COSEL Co., Ltd. Social and Environmental Report 2023

Commitment of top management
COSEL’s CSR is based on its Management Philosophy of “Responding to the Trust of society by
Putting Quality as the Most Important Priority”
Based on our management philosophy of “Responding to the Trust of society by Putting Quality as the Most Important
Priority,” COSEL aims to continue to earn the trust of society by accomplishing both contributions to the realization of asustainable society and our sustained growth.
We consider quality to be vital to realizing these goals.
When we use the word “quality,” we use it not simply in the sense of functional quality but to refer to the various types ofqualities that are essential to the sustainability of society, including the quality of the services and interactions we provide,the quality of the value we provide in response to changing needs, and the quality of our work. COSEL’s attitude toward
CSR is based on this management philosophy that has been handed down within the organization.

Basic activities to fulfill our social responsibilities
We carry out our business activities based on a customer-oriented, quality-first mindset, in all domains including productplanning, development, design, procurement, production, sales and customer-satisfaction activities. We value COSEL
Quality, which is generated through the interactions in these business activities.
We believe that continuous quality improvement leads to customer peace of mind, and by extension, to earning the trustof society. COSEL's activities are conducted through systems and structures developed to ensure thorough corporate
governance, risk management, and compliance, each of which is fundamental to corporate management that aims to fulfill
our social responsibilities. We aim to promote these activities broadly throughout the entire supply chain in addition to the
COSEL Group.

Environmental initiatives
In line with our environmental policies and the action guidelines intended to realize them, we actively promote efforts tolessen the environmental impact of our business activities based on an environmental management system. As acompany that develops and manufactures electric products, we believe that we can contribute to the realization of asustainable society through promoting energy conservation for our customers and social systems by advancing efforts tolessen the environmental impacts of such activities as procurement and production as well as developing and supplying
products that can deliver significant energy-conservation effects by reducing power loss. We believe that ourenvironmental initiatives will also enable solutions to business challenges.
We also believe that it is our mission and responsibility to pass on our precious global environment to future generations
in a sound, healthy state.

Taking on the challenges of technological innovation to create new value
The environment in which we do business has undergone massive changes in recent years as we come to face with awide range of social issues and challenges. Customer needs have also grown increasingly diverse with the progress ofglobalization. The concept of quality referred to in the management philosophy has changed and grown increasingly
diverse as well. We consider it vital to adapt to this changing concept of quality in a timely and appropriate manner.
The vision of COSEL's mid-term management policy for the 10th period calls for us to be an essential presence in asociety based on smart energy by realizing products and services that provide added value to meet customer needs. Thisvision represents our aims to identify the needs of customers and society and what they want to achieve at an early stage,
through communication and cooperation with customers, and to create, co-create, and realize new value for the future.
We will advance efforts to realize valuable products and services by boldly taking on the challenges of innovation intechnologies and manufacturing that are essential to this vision.

Workplace and human-resource development to enable each and every employee to thrive
The starting point of manufacturing is human-resource development, and above all it is our people who support ourbusiness activities and, by extension, our CSR activities. We believe that the growth of each individual employee andevolution of the organization will enable us to adapt to change, while also inspiring peace of mind among customers andleading to our perpetual growth as a company.
We also believe that improving specialized abilities in suchareas as technologies, skills, and management techniques while
sharing our individual ideas, respecting each other, andsupporting each other’s growth is the bases for enhancing ourorganizational abilities.
This is why we value communication and teamwork so highly.
We aim to be a group of autonomous human resources who areable to learn, think, and act on their own. We are confident thatbroadening the domains in which they can succeed will makework more rewarding of each individual and enable our corporate
growth as well.
We will strive to develop a culture and environment in whichautonomous human resources can grow to enable our continued
President & Chief Executive Officer,
growth as an organization.
COSEL Co., Ltd.
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COSEL Co., Ltd. Social and Environmental Report 2023

Company Overview■ Trade name

: COSEL Co., Ltd.

■ Headquarters: 1-6-43 Kami-Akae Machi, Toyama City, Toyama Prefecture 930-0816, Japan■ Lines of business : Manufacture and sale of electrical components and EMI filters■ Main products: Regulated DC power supplies (such as switch mode power supplies)■ Representative: Morio Saito■ Established: July 26, 1969

■ Capital: 2.055 billion yen (as of May 2023)■ Net sales: 35,266 million yen (Year ended May 2023)■ Employees: 707 (as of May 2023)■ Affiliates: COSEL USA INC. (San Jose, California, USA)COSEL EUROPE GmbH (Frankfurt, Germany)
COSEL ASIA LTD. (Hong Kong, China)
COSEL (SHANGHAI) ELECTRONICS CO., LTD. (Shanghai, China)
WUXI COSEL ELECTRONICS CO., LTD. (Wuxi, China)
SHANGHAI COSEL INTERNATIONAL TRADING CO., LTD. (Shanghai, China)
COSEL VIETNAM CO.,LTD. (Ho Chi Minh City, Vietnam)
Powerbox International AB (Stockholm, Sweden)

Financial standing (consolidated)
Net sales
（百万円）
(JPY
millions)

PRBX products

40,000Onboard power
オンボード電源
supplies

35,000PRBX製品Operating profit/Ordinary profit/Net income(JPY millions)
（百万円）
6,000

Noise filters
ノイズフィルタ
Unit power supplies
ユニット電源Operatingprofit
営業利益

Ordinary
profit
経常利益

Netincome
当期純利益

5,000

30,0004,000

25,0003,000

20,00015,0002,000

10,000
1,000

5,000
0

0
May 2019 May 2020 May 2021 May 2022 May 2023

May 2019 May 2020 May 2021 May 2022 May 2023

Business Outline
Electronics products, such as industrial and consumer devices, are made using numerous electronic components, suchas semiconductor devices.
IC devices, FETs, transistors, diodes, and other semiconductor devices rely on stable direct-current (DC) power supplies
to operate. This means that the alternating-current (AC) power supplies of factories and households need to be converted
to stable DC power. COSEL's regulated DC power supplies make this possible.
COSEL's main product is switching power supplies using rapid-switching effects of semiconductors.
Thanks to their compact size, light weight, and high efficiency, switching power supplies are used nearly all ICT, medical,
and factory automation devices.
Since 2005, we have also developed and brought to market noise filters to protect electronic devices from various types ofnoise.
Today, when most of the products used in society and our lives are electronic, stable DC power supply equipment, theheart of such devices, truly is key to the next generation.
COSEL will continue to contribute to a smart energy society through unlimited interaction with new technologies andcreating highly reliable products to build the future of electronics.
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COSEL Co., Ltd. Social and Environmental Report 2023

Our products

Unit power supplies

Onboard power supplies

Noise filters

Power supplies enclosed in cabinets*Mainly AC-DC converters

Power supplies implemented on

Prevention of malfunctioning caused

customers' circuit boards*Mainly DC-DC converters

by noise introduced from powersupply lines<Delivery of electricity>

Power plant

Substation

Pole-mounted
transformer

Stabilized DC
power supply

OutletDC

AC

Examples of use of regulated DC power supplies
Display devices

Large-scale display
devices

Large LED Sign foradvertisement

Telecommunications equipment

Mobile-phone basestations

LED lighting

Industrial devices

Advertising display
signs

Medical devices

CT scanners

ATC equipment for high-speed rail
rolling stock5

Industrial robots

CP application devices

Ticket vending
machines

ATMs

Power
transformers
for wind power
generation
COSEL Co., Ltd. Social and Environmental Report 2023

History
Our history since our founding (in 1967) is summarized below.
Business development

FY1967
FY1969Quality control

Launched as Kimura Electronics Sales Inc. (sole proprietorship)(Sale of parts and assembly of circuit boards)
ELCO CO., LTD., established(Kimura Electronics Sales Inc. dissolved with establishment of newcompany)

FY1973

Head-office building and factory completed (Kamiakaecho, Toyama)

FY1978Began to specialize in the power supply business

Introduced quality-circle activities

FY1979FY1980First quality-circle tournament held
Head-office factory expanded

FY1982
FY1983
FY1984
FY1986

Total quality control guidance meetings launched (adopted total quality control)
Named a model plant for SME efficiency improvements by Toyama
Prefecture
Received outstanding enterprise award from the Small and Medium
Enterprise Agency
Named a model plant for efficiency improvements by the Small andMedium Enterprise Agency

FY1987

Policy management adopted (formulating long-term and annual policies)
First presentation at external quality-circle tournament

Presented at QC Circle Headquarters tournament

FY1988

Won the Medium and Small Business Research Institute Prize

FY1989Tateyama Factory completed(Tateyama, Toyama Prefecture)

FY1990U.S.ELCO CO INC. (now COSEL USA INC. ) established

FY1992Name changed to COSEL Co., Ltd.
Began to specialize in standard power supplies

Adopted Toyota Production System (TPS_QC Circle Hokuriku Branch Toyama District: lead company

CI (visual integration) introduced
QC Circle Hokuriku Branch Toyama District: district chair company

FY1993
FY1994

Shares registered for over-the-counter trading

FY1996

TPM adopted

FY1997

German sales subsidiary (COSEL EUROPE GmbH ) established

FY1998Hong Kong sales subsidiary (COSEL ASIA LTD. ) established

FY1999FY2000FY2002

Shares listed on the second section of the Tokyo Stock Exchange and theEarned ISO 14001 certification
second section of the Nagoya Stock Exchange
Shares listed on the first section of the Tokyo Stock Exchange and the firstsection of the Nagoya Stock Exchange
Head office building expanded

Technical KI activities (now IM) launched

FY2003

QC Circle Hokuriku Branch: branch chair company

FY2004

Launched TQM guidance meetings led by outside instructors

FY2005

Launched TQM guidance meetings for partner companies, led by outside
instructors
Won Kaoru Ishikawa QC Circle Prize
Won the QC Circle Managers' PrizeFirst appearance in All-Japan QC Circle TournamentEntered noise-filter business

FY2006
FY2007

Tateyama Factory expanded

QC Circle Hokuriku Branch Toyama District: district chair company

FY2008

Launched TQM guidance meetings led by the Company (CINPR, KYT)
Won gold medal in JHS All-Japan QC Circle Tournament

FY2009Won Kaoru Ishikawa QC Circle Prize

FY2010FY2012

Won Kaoru Ishikawa QC Circle PrizeWUXI COSEL ELECTRONICS CO., LTD. began operation (production in
China)FY2014FY2015

Won the QC Circle Activities Outstanding Company/Site Prize
COSEL VIETNAM CO.,LTD. , began operation
Won Kaoru Ishikawa QC Circle Prize
Won two Kaoru Ishikawa QC Circle Outstanding Achievement Prizes

FY2016FY2018

Swedish power-supply maker Powerbox International AB made asubsidiary
R&D Center completed

FY2019FY2020WUXI COSEL ELECTRONICS CO., LTD. opened new head-office plant

FY2021

FY2022

Won the Kaoru Ishikawa QC Circle Outstanding Achievement Prize
QC Circle Hokuriku Branch Toyama District: district chair company
Won the Kaoru Ishikawa QC Circle Outstanding Achievement Prize
Won gold medal in JHS All-Japan QC Circle Tournament
Won the Kaoru Ishikawa QC Circle Promotion Prize

Shares transferred from first section to Prime Market of the Tokyo Stock Won the Kaoru Ishikawa QC Circle Outstanding Achievement Prize
Exchange due to reorganization of TSE market categories
Won the QC Circle Managers' Prize
Transitioned from a company with a board of auditors to one with an audit
and supervisory committee

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COSEL Co., Ltd. Social and Environmental Report 2023

Promotion of CSR activities
CSR in the COSEL GroupManagement philosophy
COSEL has strived to improve its organizational abilities andenhance its organizational structure through the concept andmethods of total quality management (TQM), based on its
management philosophy.
In increasingly competitive electronics markets, such as the switching
power supply market, we demonstrate our presence and competitive
advantage while clearly presenting our own unique vision to meet the
expectations of society by providing attractive technologies, products,
and services of higher quality.

Management philosophy

Responding to the Trust of Society by Putting
Quality as the Most Important Priority<Core concept>

Charter on Ethics and Standards for Voluntary Action

The Charter on Ethics and Standards for Voluntary Action have been established to realize our management philosophy
by enabling all executive officers and employees of the COSEL Group to be deeply aware of their social responsibilities,
comply thoroughly with applicable laws and regulations in all business activities, and act in accordance with social ethics.
In addition, the COSEL Mindset describes the consciousness, values, and thinking shared throughout the COSEL
Group, as foundations for the consciousness and ethics of each and every member of the organization.

Charter on Ethics(1) [Compliance with laws and regulations and social norms]
Comply with laws and regulations, social norms, common sense, and rules, as well as the spirit thereof, in addition to internal rules
and regulations such as this charter in all business activities and ensure that the COSEL Group’s business activities are conducted
properly in a manner that complies with social ethics.
(2) [Contribution to society]
Make efforts to provide world-leading products and services that meet market needs and contribute to society by doing so.
(3) [Respect for human rights]
Respect the basic human rights of all and never commit any act of discrimination or any act that violates the dignity of individuals.
(4) [Information disclosure]
Disclose information properly and conduct fair, just, and transparent business activities.
(5) [Environmental conservation]
Conduct business activities in consideration of the environment and safety in order to coexist with nature and protect the global
environment and natural resources.

Management
Philosophy

・Charter on Ethics
・Standards for
Voluntary Action,
Internal rules andregulations, etc.

Awareness and sense of ethics of each
employee

The awareness, values, and thinking that should beshared by COSEL are described in the "COSEL Mind"(pamphlet), which is distributed Companywide to ensure
thorough understanding.

The meaning of the Charter on Ethics andStandards for Voluntary Action
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COSEL Co., Ltd. Social and Environmental Report 2023

Standards for Voluntary Action(1) Sincere response to customers
We will value the opinions of customers and utilize them in all business activities including product development.
(2) Quality first
We will continue our efforts to provide the best quality products and services that satisfy our customers.
(3) Product labels, explanations, and ads
We will provide our customers with accurate knowledge on the use of our products and give them a sense of
security and satisfaction.
(4) Fair and just transactions
We will conduct fair and just transactions, such as procurement and sales.
(5) Relationship with antisocial forces
We will never form a relationship with any antisocial forces or groups that pose a threat to the order and safety ofcivil society.
(6) Timely information disclosure
We will disclose proper information to our shareholders, investors, and customers in a timely manner so that they
can correctly understand the financial health and general business activities of COSEL and the COSEL Group.
(7) Prohibition of insider trading
We will never conduct stock transactions that fall under insider trading or might be suspected as insider trading.
(8) Confidentiality
We will never leak confidential information without good reason.
(9) Protection of company property
We will take good care of all company properties that create corporate value and never commit any act thatwould damage them.
(10) Protection of intellectual property
We will work hard to protect our intellectual properties and implement all possible measures not to violate theintellectual property rights of others.
(11) Responsible performance of duties
We will perform our duties responsibly in accordance with laws and regulations and internal rules andregulations.
(12) Distinction between private and public matters
We will clearly distinguish corporate roles from private roles and never confuse corporate interests with personal
interests.
(13) Maintenance of a healthy and safe workplace
We will comply with laws and regulations and internal rules and regulations concerning a safe and healthy
workplace and work hard to create such a work environment.
(14) Respect for human rights
We will respect human rights and work hard to create a workplace free of discrimination against sex, age, placeof origin, race, belief, religion, disease, or disability.
(15) Prohibition of sexual harassment
We will never commit sexual harassment in any way.
(16) Prohibition of power harassment
We will never engage in any behavior outside the proper scope of business that slanders the personality or
violates the dignity of the person or commit harassment by taking advantage of a superior position of power.
(17) Privacy protection
We will respect personal information to the maximum extent and never infringe, misappropriate, or disclose suchinformation falsely.
(18) Overseas operations
We will respect local laws and regulations, customs, and cultures while conducting our business activities
overseas.
(19) Environmentally conscious business activities
We will comply with environmental laws and regulations and internal environmental rules and reduce adverse
environmental impact in all business activities to conserve the global environment.
(20) Contribution to society
As a good corporate citizen, each of us will strive to contribute to the realization of a good society.
(21) Political involvement
We will take a neutral stance to politicians and political groups and never provide any improper benefits or favors
to them.
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COSEL Co., Ltd. Social and Environmental Report 2023

CSR in the COSEL GroupThe COSEL Group will contribute to a sustainable society based on its management philosophy of being an essential
presence in a smart energy society by realizing products and services that provide added value to meet customer needs.
To help realize a sustainable society, all members of the organization, conscious of our roles as members of society,promote CSR through autonomous efforts to fulfill the responsibilities for our business activities based on respect for all
stakeholders, including employees as well as suppliers, customers, community members, and government.

Promotion structure
Recognizing the importance of enhancing corporate governance, the COSEL Group aims to be a company that rewards
the trust and expectations of its diverse stakeholders. Toward this end, it promotes CSR activities through a structure inwhich the Executive Committee plays a central role as the decision-making body, while also cooperating with the Risk andCompliance Committee.

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COSEL Co., Ltd. Social and Environmental Report 2023

FY 2022 targets and results
Sustainability priorities
The COSEL Group has formulated an ESG action plan reflecting its view that realizing a sustainable society is an
important topic of management. Our targets and results in FY 2022 are shown below.
We have also set new targets for FY 2023, toward which we are striving groupwide.

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COSEL Co., Ltd. Social and Environmental Report 2023

Together with our customers
Quality assurance system
Our basic thinking on quality
COSEL has established the quality policy “Creating customer confidence through our products and services” based on ourmanagement philosophy (organizational goal) of “Responding to the Trust of Society by Putting Quality as the Most
Important Priority.”
The bases of activities for quality improvement are product reliability and delivery of peace of mind to customers. We
believe that these will enable us to earn the trust of society.
To realize this policy, we have identified the concept of total quality management (ＴＱＭ) as a pillar of management, andwe aim to link this concept to our sustained growth as an enterprise through raising the levels of quality of not only our
products and services but also our work and our management.
COSEL will strive to improve quality at all stages from product planning and development through production, sales, andservice, in order to provide our customers with attractive products and services that win their trust and deliver peace ofmind and satisfaction.
【TQM concept】
We have conceptualized our thinking on ＴＱＭ as
illustrated below, and we strive to ensure its thoroughunderstanding throughout the organization.

Sustained growthManagement philosophy and vision
Strategies and policies

TPS

IM

Reforms andimprovements
Policy
manag
ement

TPM

ＱＣ
circles
IoT

Cooperative structures andcollaborative abilities
Human-resource development
ＱＣ circles
Organization

Organization

Solidarity

Solidarity

Organization...

Solidarity

Values (e.g., the COSEL Mind), philosophies, interpersonal relations,environment
Psychological stability, peace of mind

Quality Policy
Based on the Quality Policy, COSEL considers it to be our mission to deliver to customers products and services that they
can use with trust, with each and every employee working hard from day to day.
These efforts are being made in all processes, from product planning and development through design, manufacturing,shipment, and maintenance services.

Quality Policy

Creating customer confidence through our products and services

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COSEL Co., Ltd. Social and Environmental Report 2023

Quality management system
The chart below depicts the essential processes of our quality management system and their interrelations and relatedorganizations.
Quality management framework

Key
Keyprocessprocess
Process
Process

Monitoring/measurement
Monitoring/measurement
Input/output
Input/output
Commitment
Commitment

ISO 9001 certification
We have earned ISO 9001 international certification by establishing a quality management system, and we continue to
implement thorough quality management. We began application of the 2015 version of ISO 9001 in October 2016. We
successfully acquired certification under the 2015 version following a transition audit in June 2017. We have maintained
this certification since then.
We will continue striving to improve quality further and increase customer satisfaction.
【Dates of acquisition】
ISO 9001 certificate• 1987 version: June 21, 1993
• 2000 version: March 20, 2003
• 2008 version: July 23, 2010
• 2015 version: July 7, 2017
【Scope】• Design, development, manufacture, and servicing of
regulated DC power supplies (servicing limited to repair ofcollected units)• Design, development, manufacture (outsourcing), andservicing of noise filters (servicing limited to repair ofcollected units)【Registered sites】• COSEL Co., Ltd.
【Related sites】• Head Office Factory, Tateyama Factory, R&D Center,
Safety Standard Office, domestic sales facilities【Certifying agency】• Japan Quality Assurance Organization
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COSEL Co., Ltd. Social and Environmental Report 2023

Quality assurance system
To implement various processes, we have established a quality management system under which the executive officer for
TQM Promotion serves as the quality management supervisor.
We have established a quality assurance system by defining in the Quality Manual basic requirements in processes from theproduct planning and development stage through quality assessment, mass production, shipment, and service, anddocumenting the rules for each step in the procedures and other manuals in order to provide products that meet customer
needs in a more timely manner. Our quality assurance structure is shown below.
The Quality Assurance Committee, consisting of persons responsible in development, production, and quality control
sections, meets regularly to work on solutions to quality problems and issues across multiple sections.
Quality assurance structure diagram
Step

Customers
User needs

President

Planning

Management
policies

Sales
Department

Development
Department

Collection of market
information

Collection of technicalinformation

Quality
Management
Dept.

Production
Department

Materials Dept.

Quality control
promoterNew-productplanning
ND 1 (technological development meeting)
Basic design
ND 2 (new-product planning meeting)

Development, design

Functional design
Detailed design

DR 1 (Design Review 1)
Prototyping
Trial productionand evaluation
Mass-production
designProcess design
Jig and tool design
Production preparations meeting 1
DR 2 (Design Review 2)
Process design
Jig and tool design
Production preparations meeting 2

Quality evaluation

Trial mass production

Redesign
Redesign,
production

Evaluation

Quality
Evaluation

Redesign, production
Mass production
Approval

Order placement

Order receipt

Production planning

Production

Parts and materials
procurement
Acceptance inspectionof purchases

Assembly
Testing, finishing

Shipment inspection

Quality
improvements

Use

DeliveryWarehousing
Internal quality auditing
Quality Assurance Committee
QC diagnostics

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COSEL Co., Ltd. Social and Environmental Report 2023

The Customer Support Structure
Responding to quality issues
Our technical personnel respond promptly and accurately to any product failures that may occur. We provide maintenanceservices that include failure analysis, repair, and overhaul in response to any defects or failures occurring within processes orin the field.
In the event of a defect, we ask the customer for information on such subjects as the situation and environment where theproduct was used. Through accumulating such information internally, we strive to investigate the cause and resolve the defectas quickly as possible with reference to past cases.
In addition, we analyze the defects in products returned from the market and provide feedback to product development and the
production site. Then, we run through the plan-do-check-act (PDCA) cycle, intended to make improvements from thecustomer's perspective. In this way, we strive to improve product quality and provide service that will satisfy customers.
Structure of responses to quality issues, and roles of each division
Investigation, instructing
countermeasures

Development
dept. in chargeCountermeasures

Response

Returning defects
Defect information
Customers
Submittal of reports
Redelivery

Returning defects
Defect information

Request for
countermeasures

Sales Department

Development dept. service
staff

Informationcollection

Investigation, analysis

Submittal of reports
Redelivery
Response

Defect information
Investigation,
instructing
countermeasures

Quality Management
Dept.
Verification ofefficacy of
responses andcountermeasures

Request for
countermeasures

Production dept.
in charge

Investigation,
instructing
countermeasures

Countermeasures

Black: information
Blue : products

Increasing customer loyalty by creating added value
COSEL provides technical support service through a toll-free telephone number and contact form on the website as well as an
online technical support contact point. Our dedicated support team strives to respond to inquiries from customers quickly andaccurately.
We also provide a wide range of support services such as visits to customers and onsite evaluation of EMI, EMS, and otherproducts at our own facilities with the customers present as well as technical consultation services.
We have stored the details of more than 100,000 technical consultations we have responded to through now in a database, tohelp improve the quality of products and services in the future.
We also strive to improve products and services, provide new services, and resolve customers’ issues to create added value
by collecting information on complaints, conducting customer satisfaction surveys, and continuously reviewing and analyzing
customer feedback. All of these efforts are intended to contribute to increased customer loyalty.

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COSEL Co., Ltd. Social and Environmental Report 2023

With Our Shareholders and Investors
Disclosure of Information to Shareholders and Investor Relations
Regular general meetings of shareholders
COSEL holds a regular general meeting of shareholders each year in early August. The 54th regular general meeting ofshareholders was held at the Toyama Chamber of Commerce and Industry on August 9, 2023. Shareholders asked
numerous questions in the meeting, which served to enhance communication and deepen their understandings of
COSEL.
At each regular general meeting of shareholders, we survey attendees to collect a wide range of opinions and requests on
matters ranging from the content of the presentations to corporate management. We strive to utilize apply what we learn
from these surveys in our future activities.

Enhancement of tools for providing information
The COSEL website has an “Investor Relations” page on which we provide shareholders and investors with timely andequitable access to information. On our website we strive to make a wide range of information available through content
concerning management strategies, financial information, and settlement of accounts in addition to descriptions of ourbusinesses and summaries of business performance.
We have also established a committee in charge of website management and improvement, which deliberates on topics
and issues in website operation and otherwise strives to implement continual improvements to make it easier to use,
including enhancement of its content and improving speed of access.

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COSEL Co., Ltd. Social and Environmental Report 2023

Returns to shareholders
Dividend policy
We regard distribution of earnings as an important management policy. We pay dividends linked to business performance
while also striving to improve profitability. We aim to return profits to shareholders under a 35% payout ratio(consolidated).
We plan to use internal reserves for such purposes as new product development, investment in research anddevelopment and production facilities, acquisition of treasury stock, and enhancement of our financial standing tocontribute to future business expansion.
Dividend trends
Dividends per share and the payout ratio areshown at right.

Dividends per share and payout ratio
(Yen)
(Yen)

Annualdividend
年間配当Interimdividend
中間配当
Payoutratio
配当性向

228.9%

50
40

54.7%

42.1%

46.8%

30
20

34.2%

32
26

25
17

20

17

10
10

8

13

15

0
May 2019

May 2020

May 2021

May 2022

250%
240%
230%
220%
210%
200%
190%
180%
170%
160%
150%
140%
130%
120%
110%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
-10%
-20%
-30%
-40%
-50%
-60%
-70%
-80%
-90%
-100%
-110%
-120%
-130%
-140%
-150%
-160%
-170%
-180%
-190%
-200%
-210%
-220%
-230%
-240%
-250%
-260%
-270%
-280%
-290%
-300%
-310%
-320%
-330%
-340%
-350%
-360%
-370%
-380%
-390%
-400%
-410%
-420%
-430%
-440%
-450%
-460%
-470%
-480%
-490%
-500%

May 2023

Disclosure of ＩR information
We strive not only to comply with such provisions as those of laws and regulations concerning securities trading and theTimely Disclosure Rules established by the Tokyo Stock Exchange but also to disclose information proactively andappropriately to ensure transparency and accountability to all stakeholders.
We issue press releases and post the latest information and various disclosure documents on our website as appropriate.

Dialogues with shareholders and investors
We disclose information on our business strategies and performance to shareholders, investors, and securities analysts
accurately, fairly, and in a timely manner on a dedicated page for shareholders and investors on our website. We also
hold briefings on financial results twice a year for securities analysts. In these briefings, the president describes
information on subjects, including the results of settlement of accounts and recent business conditions.

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COSEL Co., Ltd. Social and Environmental Report 2023

With Our Clients

Basic thinking on procurement
COSEL strives to build transparent relationships of mutual trust that enables coexistence and coprosperity with our suppliers
from a fair, equitable, and global perspective, in compliance with laws and regulations and social norms.
To develop outstanding products that will satisfy customers around the world through our businesses, it is essential to manage
the quality of the components and materials we purchase, delivery times, and costs and to take the environment into
consideration. To this end, we strive to deepen mutual understanding with suppliers in daily business activities and provide
them regularly with information concerning quality, delivery time, costs, our management policies, and our technology
strategies.
We believe it is important for us to improve our partnerships with suppliers by maintaining and strengthening such activities.

Requests for CSR initiatives by suppliers
COSEL launched its corporate social responsibility (CSR) initiatives in 2015. To achieve CSR not only within the COSEL
Group but among suppliers as well, we strive to ensure that suppliers understand our basic approach on procurement
activities.
At the same time, we upgraded the website in September 2015, we posted requests for environmental, human-rights,
labor, and compliance initiatives as "Requests for Business Partners."
1.
2.
3.
4.
5.

Appointment of auditors and auditor-secretaries and implementation of healthy corporate management
Respect for human rights
Development of a safer workplace and improvement of work-life balance
Energy saving, CO2 reduction, and environmental conservation
Implementation of ethical actions to society

Initiatives to address conflict minerals
There are concerns that mineral resources mined in the Democratic Republic of the Congo and nine neighboring countries
serve as sourced of funding for armed groups in these regions. To address this issue, in July 2010, the United States enacted
the Dodd-Frank Act, requiring U.S.-listed companies to conduct inquiries to identify refiners of the conflict minerals and filereports to the U.S. Securities and Exchange Commission.
We support the aims of the Dodd-Frank Act and have established our own rules investigation of conflict minerals, to promoteresponsible procurement of minerals. We explain the purpose and necessity of investigation of conflict minerals to our
suppliers and collect information utilizing the Conflict Mineral Reporting Template (CMRT).
When customers ask us to disclose information on the results of our investigation of conflict minerals, we provide them with theinformation using the CMRT.

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COSEL Co., Ltd. Social and Environmental Report 2023

Supplier evaluation
When commencing business with a new supplier, we conduct supplier evaluations from perspectives that include those offinancial standing, capacity to supply components, and quality and environmental management systems. From anenvironmental perspective, we make it a condition that suppliers are able to comply with our Green Procurement Standards.
At the beginning of the fiscal year, we also evaluate each supplier based on the perspectives of the previous fiscal year’s
product quality, supply, cooperation on costs, and the environment, and we audit suppliers whose evaluation results are low.

New supplier evaluation flowchart

New supplierevaluation

1.F inancialstatus
2.C apacity to supply com ponents
3.Q uality m anagem ent system
4.E nvironm entalsubstance controlsystem

Pass
Start business
Pass

Regularevaluation

Order placement

1.Q uality
2.D elivery tim e
3.C ooperation in cost reduction
4.E nvironm ental risk

FailedB usiness suspenstion

Green procurement
In order to deliver environmentally friendly products to customers, it is vital to ascertain the chemical content of not only ourown products but also those of suppliers and to disclose and communicate such information smoothly. For these purposes,
we strive to establish a system covering the entire supply chain.
COSEL established its Green Procurement Standards in FY 2004 and has used them as conditions of transactions with
suppliers since then. We also conduct regular review for compliance with laws and regulations and promote greenprocurement efforts.

18

COSEL Co., Ltd. Social and Environmental Report 2023

With the Community
Community contribution activities
Industry-academy joint research and cooperation with various industry associations in technical fields
COSEL is advancing joint research with academic institutions that include Toyama Prefectural University and Toyama
University by communicating to students the spirit of manufacturing as well as the latest science and technology throughestablishing factor technologies in such areas as solder strength analysis.
We also participate proactively in the activities of various industries and associations both inside and outside Toyama
Prefecture by taking on a wide range of issues and challenges in cooperation with related companies.
〔Joint research〕• University of Toyama Cetner for Promotion of Regional Collaboration Exchange and Promotion Council• Toyama Prefectural University Research Cooperation Council〔Industry associations〕• Japan Electronics and Information Technology Industries Association (ＪＥＩＴＡ)• Japanese Society for Quality Control• KEC Electronic Industry Development Center• Union of Japanese Scientists and Engineers• Japan Management Association• Japan Society for the Promotion of Science• Toyama Association of Corporate Executives• Toyama Chamber of Commerce and Industry• Toyama Employer’s Association• Toyamaken Kiden Kougyoukai• Toyama New Industry Organization Young Researchers Development Council• Toyama Technology Exchange Club
• Toyama IoT Acceleration Consortium

Internships
Internships provide opportunities for students to raise awareness by thinking about and experiencing for themselves theworking world, life in a company, and what it means to be a professional before they begin their careers through work
experience in the actual workplace.
COSEL offers internships in operations related to development or production technology, providing high school anduniversity students with opportunities to experience work related to design of power supplies and to learn about thefundamentals of production process design through classroom study and work experience.

Cosponsoring the Toyama Prefecture Middle School Manufacturing Education Promotion Conference
COSEL is a cosponsor of the Toyama Prefecture Middle School
Manufacturing Education Promotion Conference, organized by the
Toyamaken Kiden Kougyoukai to help middle-school students
appreciate the enjoyment of manufacturing and get a feel for how
fascinating it can be as one of a wide range of possible future career
paths.
These activities include programs for dispatching instructors andorganizing company tours as well as a program to provide support inteaching materials and other areas. It also helps middle-school students
to experience the fun and interest of manufacturing workplaces andholds lectures on such subjects as how what they learn in school is put
to use in society. We actively support these activities based on ourbelief that opportunities to see real business workplaces will help
middle-school students in choosing their future career paths.

Blood drives
Amid Japan's falling birth rate and the aging of its society, the number of senior citizens who need blood transfusions has
been increasing while the number of young people who can donate blood has been decreasing. This has led to anationwide blood shortage.
We conduct employee blood drives every year and cooperate in the activities of the Japanese Red Cross Society Blood
Center.
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COSEL Co., Ltd. Social and Environmental Report 2023

Fund raising
In the past, COSEL has donated both the proceeds from an annual company bazaar and money collected from
employees to the Community Chest of Toyama. However, since the bazaar has been canceled to help stop the spread of
COVID-19, we have recently continued only the collecting of donations.
The donated funds are used for activities conducted by municipal social welfare councils, such as home welfare services,
volunteer development, accident prevention for children, and supporting the healthy growth of young people.

Support for community events【NT Toyama Manufacturing Technology Expo】
COSEL is a sponsor of NT Toyama, which aims to establish a culture of manufacturing inToyama and help develop future human resources in the region.
NT Toyama is a manufacturing exposition that has been held since 2021.
Its aims include the following:• To stimulate manufacturing in Toyama and increase its population of manufacturing
professionals• Helping those unfamiliar with manufacturing to learn how fun it can be• Providing stimulating opportunities for people who love making things to show theirworks to each other with peace of mind
It attracts large numbers of people from the region, including families with children, andfrom outside the prefecture, all of whom get a chance to see and touch the works exhibited.

Support for athletic activities【COSEL Cup Challenge Super Kids】
COSEL Cup Challenge Super Kids has been held continuously since 1989.
This tournament has become an established tradition in the community as a chance for outstanding child athletes selectedfrom more than 100 elementary schools in Toyama Prefecture to compete in five events: 100-meter dash, softball throw,running long jump, zigzag dribbling, and swimming.
The 34th tournament was held right before COVID-19 was reclassified as a category-five infectious disease. A total of 189
students from 81 schools in Toyama Prefecture took part while implementing measures to prevent infection.
The weather was beautiful, and the children competed enthusiastically in each event.
Nine COSEL staff members volunteered to guide the students during the tournament.

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COSEL Co., Ltd. Social and Environmental Report 2023

With Our Employees
Continual investment in human rights
Training to prevent harassment in the workplace
COSEL respects the fundamental human rights of all people and endeavors to create workplaces free of discrimination basedon gender, age, disability, or other status and of acts detrimental to individual dignity.
COSEL’s Standards for Voluntary Actions clearly state, “We will never commit sexual harassment in any way,” and “We will
never engage in any behavior outside the proper scope of business that slanders the personality or violates the dignity of theperson or commit harassment (power harassment) by taking advantage of a superior position of power." We also maintain
Rules on Prevention of Harassment and strive to prevent reoccurrence of past cases of harassment.
All employees are provided with anti-harassment education during the annual compliance education program to raiseawareness of harassment throughout the organization.

Establishing contact points for consultation
COSEL has set up contact points to receive reports from employees and consultation on whether or not certain behavior
violates laws and regulations. These contact points provide problem-solving services. In addition, our in-house rules
require strict confidentiality and prohibit any disadvantageous treatment of those who have reported cases of harassment.
We continue strengthening our harassment reporting system by ensuring all employees are aware of the contact points
and improving advisors’ skills.

Relationship with the Labor Union
COSEL has concluded a labor-management agreement with the COSEL Labor Union, an organization of employees thataims to maintain and improve working conditions, and regular labor-management conferences are held to maintainhealthy labor-management relations.

Prohibition of forced labor and child labor
COSEL strictly prohibits forced labor in which employees are forced to work against their will and the employment ofchildren lower than the minimum age for employment.

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COSEL Co., Ltd. Social and Environmental Report 2023

Stabilization of employment
Labor-management dialogue
We hold regular labor-management conferences to share information with the labor union. These conferences discuss
working conditions and various systems that include the personnel system, the state of job attendance among subject
workers, measures to ensure the health and welfare of subject workers, the status of complaint processing and related
efforts, and the details of reports submitted to the director-general of the Labour Standards Inspection Office.

Trends in numbers of employees (trend in new hires)
This chart depicts trends in numbers of employees and in new hires for technical positions.
COSEL's hiring activities are focused on technical positions. Under conditions in which it is difficult to find new employees fortechnical positions, we plan to incorporate measures catering to student needs in the future, for example, by deepening theirunderstandings of the work of engineers through internships.
Trends in numbers of従業員数と技術系採用人数推移
employees and in new hires for technical positions(人)(People)(People)Engineering hires (development, production

Employees(unconsolidated)
従業員数（単体）

技術系採用人数（開発・生産技術）
technology)

40

600
500

447

425

458

453

473

469

30

400
20

300

17

14

20

16
11

200

8

10

100

0

0
2017

2018

2019

2020

2021

2022
（年度）
(FY)

Diversity and Inclusion
Employment of people with disabilities
COSEL's doors are wide open to people with disabilities.
We provide an environment in which people can find fulfilling positions and work hard in accordance with the details of theirdisabilities and skills.
We also strive to raise awareness of human rights among employees without disabilities because their experiences working
with people with disabilities help to deepen their understanding of people with disabilities.

Gender-neutral treatment
Following a series of preparations, in FY 2022, COSEL migrated to a new HR system to realize clear and fair treatment
reflecting employees' individual roles. This program is intended to evaluate and compensate employees based on how
they perform their roles without regard to age (experience) or gender.
Through hiring and promotion activities with respect for diversity and use of the new HR system, we will help each andevery employee to grow while also ensuring fair treatment regardless of gender and promoting women managers, among
other goals.

22

COSEL Co., Ltd. Social and Environmental Report 2023

Creating safe, healthy workplaces
Industrial health and safety
In accordance with the Industrial Safety and Health Act, we have established a Safety and Health Committee isestablished at each COSEL plant in Japan to engage in activities related to health and safety. Committee members
recruited from each division strive to prevent accidents on the job and improve health and safety conditions in theworkplace, aiming for a goal of zero on-the-job accidents.
Activities in FY 2022 included review of health and safety education and checking on the state of establishment of
measures to prevent reoccurrence. As a result, the number of on-the-job accidents has started to decrease.
We will continue efforts toward the goal of zero on-the-job accidents in the future as well.

労働災害発生件数
Numberof on-the-job accidents(Number of （件）cases)

15

10
10

7

7

6

3

4

5

2

0
2016

2017

2018

2019

2020

2021

2022

（年度
(FY)）

Health management
Excessive workloads, such as extremely long working hours, may exacerbate such health problems as cerebrovascular andheart conditions.
COSEL asks employees working excess overtime to meet with industrial physicians. Through these efforts, we strive toprevent health issues caused by work.
To promote early detection and raise awareness of women's health issues, COSEL pays a subsidy equivalent to one-half ofthe costs of medical examinations for women aged 25 and older.
Twenty-eight employees used this system in FY 2022.

Stress checks
Following amendment of the Industrial Safety and Health Act, workplaces with 50 or more employees have been required to
conduct stress checks once a year since 2015.
COSEL implements stress checks for the following purposes:
i. To prevent the development of severe stress-related conditions, through enabling employees to notice their own
stress conditions, gain basic understandings of stress and mental health, and have effective ways to relieve stress.
ii. Through ascertaining and improving any issues in the workplace environment that could be causes of stress, wereduce the likelihood of employees suffering from excessive stress.

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COSEL Co., Ltd. Social and Environmental Report 2023

Promotion of work-life balance
Leave systems
COSEL has introduced the following leave systems to improve employees’ work-life balance.
Family-care leave/time off
Employees caring for family members who require long-term care can take family-care leave/time off in accordance with the terms andconditions of these programs.
System for maternity leave before or after childbirth, childcare leave, and childbirth leave (leave for fathers after childbirth)
Our in-house rules clearly describe such systems as those for maternity leave before or after childbirth and childcare leave.
Childcare leave may be taken through the last day of the month after the month in which the child reaches the age of two years.
Childbirth leave (leave for fathers after childbirth) may be taken for up to four weeks (which may be divided into two periods) during theperiod through the day after the eighth week following the date of birth.
Child nursing-care leave
An employee caring for a child through the sixth grade of elementary school may take child nursing-care leave. Child nursing-care leave,
which is separate from annual paid leave, is intended for uses such as caring for an ill or injured child or accompanying the child tovaccinations or health checkups.
Encouraging employees to take paid leave systematically
We encourage employees to take paid leave through in-houserules that require them to take two days of their annual paid leave
each half-year.
While there was a decreasing trend beginning in FY 2020, thanks
to efforts such as encouraging employees to take paid leavesystematically numbers taking leave is recovering to pre-COVID
levels.
We will continue to encourage employees to take paid leavesystematically, to help balance work and home life, encourage
self-improvement, and provide opportunities for rest andrelaxation.

Days of paid holiday taken yearly(Days)（日）

有給休暇 年間取得日数の推移

16.0
14.0

13.4

14.0

13.1

12.7

12.3

12.2

12.0
10.0
2017 2018 2019 2020 2021 2022

Accumulated healthcare leave
Employees may take up to 20 days/year in leave for (i) personal
injury or illness and (ii) short-term childcare, family care, or
nursing care.

(FY)
（年度）

Refreshment leave
Employees may take refreshment leave days for the numbers of days corresponding to their years of continuous service in milestone years.
This leave is intended for mental and physical refreshment purposes (including recognition of their service, health maintenance andimprovement, and enrichment of home life). (The period during which the leave may be taken was extended from one to two years to make iteasier to take refreshment leave even during the COVID-19 pandemic.)

Consideration for working hours
Flextime system
We employ a flextime system so that our employees can work efficiently while maintaining harmony between their work andpersonal lives.
No-overtime day
COSEL has designated Wednesday of each week as no-overtime day in which employees are encouraged to make time
available for pursuing hobbies, learning new things, and spending time with their families.
Shortened working hours for childcare
We encourage employees caring for children through thesixth grade of elementary school (through March 31 of thechild's sixth-grade year) to use this program, which enables
them to work shortened working hours in accordance withthe provisions of the flextime program.

Numberof users of the Short-Time Working
System for Childcare
育児短時間勤務制度
利用者数の推移(People)

30

27

25

28

30
25

20
10
0
2018
24

2019

2020

2021

2022
(FY)
（年度）

COSEL Co., Ltd. Social and Environmental Report 2023

Creating fulfilling, rewarding workplaces
Self-improvement and skills development
COSEL's human-resource development initiatives include a system to support every employee's autonomous growth, basedon our education philosophy and policies. Our management philosophy says of human-resource development, “We develop
human resources with the ability to conduct quality control, advanced technical skills, and good personalities that serve as anengine for business expansion based on our educational policy.” We have established the following basic educational policies
in line with this philosophy:
1. Stimulation of workplaces
2. Enhancement of leadership
3. Learning required knowledge and techniques, and improving skills
4. Developing skills to operate and maintain an appropriate quality system
5. Recognizing the necessity of the environmental management system and developing the skills needed to operate andmaintain it

Education of human resources
Employees take various educational courses to learn in accordance with the basic educational policy and develop their own
individuality and skills while stimulating each other.

Education categories/System of education by level
Education category
Career educationNew
employees

Younger
employees

Basic education
Company-wide
basic education

Team
leaders

Managerial
personnel

Career training (year two, year four, age 30, 40s and 50s)

Specialized
education
Sectionspecificeducation

Mid-level
employees

Section internal education
Technical training
for new
employees

Language education/Correspondent education/QC education
Education for
new employees

Education by level

Training by level

Management training by
level

Company-wide lectures/Compliance Education

Intellectual-property activities
In recognition of the need to motivate engineers to develop advanced technologies and secure intellectual property rights,
COSEL has established an award system for inventions under which awards are presented for securing and utilizing IP.
In particular, the originality of the circuits and structures we employ is important to competitive strength in the markets forswitching power supplies and noise filters. The level of such technologies is directly linked to product performancedifferentiation. In order to continue our business activities and contribute to society, we make constant efforts to develop newtechnologies. Believing that it is important to secure competitive advantage by applying, registering and protecting thetechnologies we have developed as intellectual properties, we actively apply for patents and other means of such protection.
To this end, we require discussions among IP staff and development engineers during the development process to consider
appropriate applications for IP rights.
We also emphasize compliance with applicable laws and regulations in our IP activities. In line with the intents of IP laws andregulations, we make it a practice to search for relevant patents in the product development process to respect the intellectual
property rights of other companies and prevent our products from violating their rights. We strive to raise the value of our
products by entering into licensing agreements on valid patents owned by other companies as needed.
25

COSEL Co., Ltd. Social and Environmental Report 2023

QC circle activities
We have continued QC circle activities since 1978.
All employees, including department and division general managers, participate in QC circle activities as a part of their job
duties (TQM activities).
Through these activities, employees working on the frontlines in the workplace form small groups to arrive at solutions to
issues in the workplace concerning such matters as business efficiency, products, services, and work. This contributes to selfimprovement and mutual awareness raising, thus improving the skills of all employees and helping to create brighter
workplaces full of vitality.
Currently there are 82 QC circles active in the Company as a whole.
They meet during working hours, aiming for one hour-long meeting
per week. Circles compete with each other to demonstrate growth,
as the circles that have made outstanding achievements in block
Goals of activities
presentation meetings present their results at the annual Company(1) Improving individual abilities
wide meeting.
(2) Enlivening the workplace throughparticipation by all(3) Contributing to improving corporate
business results

Basic policies of activities(1) Improving quality and efficiency in operationsof each section(2) Building workplaces in which each and every
individual can enjoy a sense of accomplishment
through creative activity

Educational philosophy
It is human resources that power business progress

The basic concept of QC circles

The Company-wide meeting (photographed in April 2023)
Main Hall, Toyama Chamber of Commerce and Industry

Kaizen proposal system
The kaizen proposal system was launched in 1978 to build better workplaces while also improving operations throughproviding employees with various opportunities to submit proposals.
It involves setting individual target figures at the start of the year and distributing commemorative gifts (assorted snacks) to all
employees if they all achieve their targets. It has become an annual event enjoyed by all.
Awards and monetary incentives are provided in monthly and annual categories for proposals implemented, in fixed amounts
regardless of the monetary effect of the kaizen proposals.

Cumulative value of results of proposal system (since 1978)
提案制度累積効果金額(1978年からの累計)(JPY millions)

5,000
4,161

4,000
3,000
2,000
1,000
0
2014

2015

2016

2017

2018

2019

2020

2021

2022
(年度)
(FY)

26

COSEL Co., Ltd. Social and Environmental Report 2023

Environmental Management
Environmental Policy
Environmental Policy
We established an Environmental Policy that expresses our basic thinking on the environment and share it across theorganization. We strive to realize a sustainable society while demonstrating to society our own approaches to environmental
issues.

Environmental Policy

Environmental Philosophy

Harmonize production and product development with the environment, endeavor to maintain and improve the global
environment and thereby contribute to the society

Action Guidelines
The following action guidelines are set to embody our environmental principles.
(1) Offer environmentally friendly products.
(2) Avoid unnecessary consumption of resources and promote reuse of waste.
(3) Reduce and eliminate the use of environmentally unfriendly chemicals and endeavor to improve the global
environment.
(4) Set and review goals and objectivities to control our activities, work for continuous improvement and prevent
contamination.
(5) Comply with national and local environmental regulations and align with the needs of customers and local
communities.
(6) Enlighten employees about environmental preservation including biodiversity conservation through environmental
education of all employees.
Enacted on May 21, 1999
Revised on July 24, 2012

Environmental Management System
Environmental Management System
COSEL has established and implement an environmental management system to ensure effective environmental management.

President

Environmental
auditors*1

Chief Environmental
Manager*2

Environmental
Committee

OfficeDivision in charge ofenvironmental management

Conducts
environmental audits

Beautification and Recycling
Committee

Department

Safety and HealthCommittee

Division

Makes recommendations for
improvement regarding theIndustrial Safety and Health Act

Promotes and directs recycling
activities

Environmental Management System
27*1 Chief Environmental Manager: Chairman ofEnvironmental Committee*2 Made up of the heads of major departments

COSEL Co., Ltd. Social and Environmental Report 2023

ISO 14001 certification
Aiming to be a company trusted by stakeholders, we have earned ISO 14001 international environmental management
certification at our Head Office Factory, Tateyama Factory, and R&D Center and are implementing continuous
improvement activities.
We began application of the 2015 version of ISO 9001 in October 2016. We successfully acquired certification under the2015 version following a transition audit in June 2017. We have maintained this certification since then.

ISO 14001 certificate【Dates of acquisition】• 1996 version: December 17, 1999
• 2004 version: October 21, 2005
• 2015 version: September 1, 2017

【Scope】••

Design, development, manufacture, and servicing of regulated DC power
supplies (servicing limited to repair of collected units)
Design, development, manufacture (outsourcing), and servicing of noise filters(servicing limited to repair of collected units)【Registered sites】• Head Office Factory, Tateyama Factory, R&D Center【Certifying agency】• Japan Quality Assurance Organization

Internal Environmental Auditing
Internal environmental auditing is conducted once a year to verify that the environmental management system is functioning
effectively.
During FY 2022, it was conducted in October-November. This did not identify any serious systemic flaws or minor
nonconformities. Internal auditor also proposed eight improvements to make the system even better.

Compliance with environmental laws and regulations
Each month, we collect information on legal and regulatory amendments and check for the necessary of changes to ourmanagement structure.
We also conduct an annual legal and regulatory compliance evaluation. Results of the compliance evaluation confirmed thatonce again there were no compliance violations in 2022.

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COSEL Co., Ltd. Social and Environmental Report 2023

Environmental education
Environmental education
Education on management of chemicals harmful to the environment
We have carried out education on management of chemicals harmful to the environment since FY 2006.
This program is intended for people working for COSEL at our Head Office Factory, Tateyama Factory, and R&D Center and at
our OEM manufacturers, logistics contractors, and repair contractors.
Using training material developed by the division in charge of environmental management, this training is conducted as part ofinternal training by departments. Trainees are tested to check their level of understanding. This helps to deepen theirunderstandings of the objectives and importance of managing chemicals harmful to the environment as well as the details of
COSEL's initiatives.

Encouraging employees to take the Eco Test
Organized by the Tokyo Chamber of Commerce and Industry, the Eco Test has the following aims:
i. To develop highly knowledgeable human resources to lead society in addressing environmental issues
ii. To promote a sustainable society balancing environmental and economic concerns
COSEL employees have been taking the Eco Test since the sixth test in FY 2009. Currently, 159 employees (34% of all
employees) have passed the exam.
We encourage our employees to take the Eco Test by subsidizing part of the examination fee and providing monetary rewards
to those who pass the exam.
Employees who have passed the Eco Test

300

Numberpassing
合格者数(People)
（人）

（％）
40

Percentage
passing
合格者占有率

34
250
30

27
200

50

125

134

20

150
100

23

25

11

11

52

54

2013

2014

14
66

15
77

17
88

108

149

159
20

10

0

0
2015

2016

2017

2018

2019

2020

2021

2022
(FY)

29

COSEL Co., Ltd. Social and Environmental Report 2023

Environmental goals and achievement state
Environmental goals and achievement state
The state of achievement of environmental targets and goals in FY 2022 is shown on the table below.
Six of 12 environmental targets and goals were achieved.
To continue to fulfill our corporate social responsibilities, we will continue efforts through groupwide cooperation centered on
the Environmental Committee.

Environmental targets and goals and achievement state[Evaluation] ○： Goal achieved;△： 80% to 99％ of goal achieved0; ×： Less than 80％ of goal achieved
Objective (priority)

No.

1

3
4
5
6
7
8
9
10
11
12

Greenhouse-gas emissions reductions

2

Reducing CO2 emissions by
reducing the consumption offossil fuels
Studying enhanced use ofrenewable energy

Control item

Goal

ResultEvaluation

58 t-CO2 or more

92.6 t-CO2○

Deadline for preparation:
November 2022

Completed in March 2023△

74.2% or above

74.3%

○

57

57

○

18.8 MWh or more

39.5 MWh○

Ascertaining the status of initiatives by suppliers

30 or more

22

×Implementing approaches to obtain supplier
Scope 1 and 2 data

5 or more

21○

Surveying details of landfill waste
and preparing reduction plans

Not implemented

×CO2 emission reductions
Preparing a report on study of adopting solar
power

Switching to LED lighting

Percentage of lighting switched to LED

Updating air-conditioning
equipment
Promoting energy-conservation
activities

Number of units switched from GHP (whichusers fossil fuels) to EHP
Electricity use reduced through promoting
energy-conservation activities

Promoting the sharing of
initiatives with suppliers
Reducing emissions (industrial
waste)

Promoting the Three Rs for landfill waste

Ascertaining use of energy

Electricity use

4,104 MWh or less

4,101 MWh○

Emission/waste volume234,000 kg or less258,228 kg△

98% or above

97.3%

△

Ascertaining emissions (waste)
Recycling rate
Promoting and expanding eco
modelsNumber of eco product development models(Eco models as a percentage of shipments)

30

New: 11/expanded: 7

New: 8/expanded: 4(82.9%)

×

COSEL Co., Ltd. Social and Environmental Report 2023

Environmental impact
We investigate and ascertain the environmental impact of our business activities annually, for use in management activities.
Period surveyed: December 2021 to November 2022 (Figures in parentheses indicate year-on-year comparisons)
ＩＮＰＵＴ
EnergyProduction material

Electricity

LP gasApprox.
4,820,000 kw h
(107%)

Office paper

Approx.
55,700 m3(103%)

Parts andmaterials

Lead-freesolderApprox. 2,069 t

Approx. 7.4 t(107%)(119%)

Kerosene

Gasoline

Flux/IPA

Approx. 3.7 kl

Approx. 5.0 kl

Approx. 26.4 t(298%)(100%)(103%)

Packing

Copy paper
Approx. 4.9 t(96%)

Water resources

Packing box(Cardboard box)

Cushioning material(Cardboard box/plastic)

Approx. 274 t

Approx. 99.2

(90%)

(83%)

Clean water

Groundwater

Approx. 6,100 m 3

Approx. 25,300 m 3(92%)(129%)ＯＵＴＰＵＴ
Recycling

Waste
GeneralStabilized-type industrial
waste

Approx. 3.4 t

Approx. 8.7 t

(86%)

(77%)

Special control-typeindustrial waste

Approx. 99 kg(215%)

Cardboard

Used paper

Plastics

IPA/flux waste

Approx. 100.4 t

Approx. 13.0 t

Approx. 44.0 t

Approx. 16.5 t(106%)(95%)(112%)(87%)

To be used as amaterial f or
cardboard

To be used f or
toilet paper andnewspaper

To be used f or
combustion
improv er

To be used f or
combustion
improv er

Waste oil

StyrofoamFluorescent tube

Conductiv e

Approx. 6.3 t

Approx. 0.7 t

Approx. 72 kg

Approx. 88 kg(127%)(125%)(81%)(124%)To be used f or
combustion
improv er

To be used as amaterial f orpoly sty rene

To be used as amaterial f or glass

To be used f or
waterproof sheet

Products

Valuable material

Products

Lead-freesolder

Metal scrap

Approx. 2,072 t(107%)

Approx. 4.1 t

Approx. 23.9 t(113%)(98%)

31

Greenhouse gases

Discharged water

CO2

SewageApprox. 2,625 t-CO2

Approx. 8,600 m 3(113%)(108%)COSEL Co., Ltd. Social and Environmental Report 2023

Environmental accounting
In FY 2022, we invested approximately 139 million yen as environmental protection costs. This includes switching fromfluorescent to LED lighting and switching from GHP to EHP air conditioning.
We also recorded approximately 18 million yen as economic benefits of environmental protection through gains on the sale ofwaste as valuable materials, reduced the purchase of electric power through the use of solar power, generated savings inelectricity consumption through use of solder tanks developed in house.
*These figures have been totaled with reference to the Ministry of the Environment's FY 2005 Environmental Accounting Guidelines.

Environmental protection costs

Scope: Head Office Factory, Tateyama Factory, R&D Center
Unit: JPY millions

Category
Main initiatives
Investments
Costs(1) Costs in business areas
Environmental protection costs to control environmental impacts arising in business areas from production and service activities(i) Pollution prevention costs
00(ii) Global environmental protection costs LED lighting, air conditioning (from GHP to EHP)
139.2
93.0
(iii) Resource recycling costs
09.7(2) Upstream/downstream costs(Expense) Promotion of green procurement0
6.2
Management of environmental chemicals
Costs to control environmental impacts
arising upstream/downstream in connection
with production and service activities(3) Costs of management activities(Expense) Maintenance of environmental management systems

Environmental protection costs inmanagement activities

0

13.3

0

0.0

139.2

122.2

Monitoring and measurement of equipment
and facilities causing environmental impacts
Responding to environmental chemical content
surveys(4) R&D costs
Environmental protection costs in R&D activities

Total*Expenses recorded as environmental protection costs include depreciation on capital investments made in past fiscal
years and personnel costs.
Economic benefits of(Unit: JPY millions)

Quantity benefits of environmental protection
Item
Benchmark: FY 2020
(Solar power generated, power use
reduction through energy conservation
measures)

Volume of effects

697 (t-CO2)

Volume of emissions put to effective use(Volume recycled, reused, and used as
valuables)

251.2 (t)environmental protection

Item
Amount of effects
Gain on sale of valuables
16.8
Reduction in power use by solar power
1.3
generation
Reduction in power use by solder tanks
0.1
developed in-house
Total
18.2

Investments(JPY millions)

Expenses
Expenses protection
Economic benefits of environmental

Trends in environmental-protection investment/costs andeconomic benefits of environmental protection
32

(FY)

COSEL Co., Ltd. Social and Environmental Report 2023

Environmental impact reduction
Promoting Efforts toward a Zero-carbon Society
CO2 emissions reduction
COSEL aims to reduce its CO2 emissions by at least 30% in FY 2030 vs. FY 2020.
We launched a project to reduce electric power use, which accounts for a large share of energy consumption, under which
we are actively promoting energy-conservation activities (such as adoption of energy-saving machinery and conserving
electricity).
We also are making active progress on switching to renewable energy. The R&D Cetner is powered 100% by renewables.
We are making progress on switching air conditioning from GHP air conditioners, which use fossil fuels, to highly energy
efficient EHP.
We will continue to promote further activities to conserve energy and prevent global warming through means that include
the adoption of renewable energy-based power and reducing use of fossil fuels.

3,000

2,967 (*1)(ｔ-CO2)

Trend in CO2 emissions (FY 2023 and after: target values)

2,655
2,500

2,270

CO2 emissions reducedby 70％ or more

2,000

956

915

2025

1,000

2024

1,400

1,500

Scope 1SCOPE1
Scope 2SCOPE2

812

500

2030

2029

2028

2027

2026

2023

2022

2021

2020

0

(年度)
(FY)

(*1) Emissions coefficients for FY 2022 CO2 emissions have been revised.

Use of renewable energy
In 2002, we installed 60 kW solar panels on the roof of the new Head Office building, which generate approximately 60 million
Wh per year (reducing CO2 emissions by approximately 25 t-CO2). In 2004 we installed 50 kW solar panels on the roof of the
Tateyama Factory, followed by the installation of additional units in 2007 and 2011.
We have also installed internal power generation display monitors so that employees can check the amount of power
generated at any time.

Tateyama Factory solar panels

Tateyama Factory power
generation display monitor

33

COSEL Co., Ltd. Social and Environmental Report 2023

Development of compact, high-efficiency power supplies
For new products, we conduct an environmental assessment at the development stage from the perspectives of resource
conservation, energy conservation, recyclability, toxic substances, packaging, and packing materials. We also promote efforts
to develop more environmentally friendly products.

High-efficiency AEA series of AC/DC power supplies compatible with peak current (800 W)
Point 1
Helps make customers'
equipment more compact!

Point 2High-efficiency design

Resource
conservation

Bulk reduced by 36.9%
Weight reduced from 1.9 kg to 1.3 kg

6％
improvement
Approx.

AEA100F-48
AEA800F-48
Efficiency [%](Compared to previous products)

Energyconservation(Compared to previous products)

Previous model

ADA750F-48 (Previous model）

Power loss reduced by
one-half compared toprevious products

Output power Po [W ]26㎜Down

20㎜Down
Also compatible with peak current of three times
the standard current!

３×５-inch AC/DC GHA700 model （700 W)
Point 1High-efficiency design

Point 2

Energyconservation

Wide temperature derating

GHA700Efficiency [%]Resource

conservation
ResourceEnergy
conservationconservation

GHA700

GHA500 (Previous
model）

Approx.

4％ improvement(Compared to previous products)

GHA500 (Previous
model）

Reduced from two units to one!
Power loss reduced by about 20 W！

34

COSEL Co., Ltd. Social and Environmental Report 2023

Environmentally friendly Eco products and their logo
In FY 2010, we developed a new internal environmental assessment system in order to promote the development ofenvironmentally friendly products and actively provide customers with environmental information on our products. Aiming tolessen their environmental impact, we evaluate our products based on the following three items.
i. Environmental impact generated when our products are operated at customers’ sites
ii. Environmental impact generated when our products are manufactured at our plants
iii. Environmental impact generated when the materials and components we purchase are manufactured
For such evaluation, we have established our own standards that we use to certify and register products that satisfy thestandards and are highly effective for lessening environmental impact, as Eco Model products.
We encourage customers to use these Eco Model products by identifying them using the logo below.

Eco Model products (cumulative total)/Eco Model products as apercentage of all products shipped（%）
100(Model)（モデル）
500
Number of
ﾓﾃﾞﾙ数
models

400

70.5
59.3

62.9

Percentage
of units shipped
出荷台数比率

75.0

71.1

74.8

211
164

180

78.7

82.9

80

65.7

300

200

77.0

234

225

252

265

285

190

297

60

40

100

20

0
2013

2014

2015

2016

2017

2018

2019

2020

2021

0
2022 (FY)（年度）

COSEL's Eco Model logo

We will continue actively expanding our lineup of Eco Model products to realize, together with our customers, a low-carbon,
recycling-oriented society that makes less of an impact on the environment.

35

COSEL Co., Ltd. Social and Environmental Report 2023

Lessening environmental impact at production sites
To lower assembly costs by half, we are deploying in our production lines soldering devices that we developed in-house.
Compared with conventional soldering equipment, these devices help to lessen environmental impact by greatly increasing
equipment capacity.
[Equipment cost reduction]
３２％ reduction compared to existing
equipment[Auxiliary material cost reduction (solder
bars, IPA)}
４８％ reduction compared to existing
equipment[Maintenance work reduction]
６０％ reduction compared to existing
equipment[Equipment footprint reduction (spacesaving)]２５％ reduction compared to existing
equipment
Soldering equipment developed in-house

Power consumption efficiency compared to conventional tank(Comparison to conventional type-A soldering equipment)
100%

100%

63%
reduction

80%
60%

62%

40%

37%

20%
0%

[Conventional]
type-A【従来】A型
Solderingequipment
はんだ付け装置[Conventional]
type-B【従来】B型
Solderingequipment
はんだ付け装置[Developed
by COSEL]【自社開発】
Solderingequipment
はんだ付け装置

Units of soldering equipment (facilities) adopted/ CO2 reductions(Units)CO2 emissions

Units adopted (cumulative total)(t-CO2)(FY)

36

COSEL Co., Ltd. Social and Environmental Report 2023

Promoting a recycling-oriented society
Promoting reductions in waste disposed of in landfills and recycling activities: *1 Toward zero emissions
COSEL promotes the "Three R's" based on the perspectives of lessening environmental impact and effectible use ofresources.
We regularly check the status of waste segregation and strive to raise employees’ awareness.
We will continue our efforts to control the volumes of waste from business activities disposed of in landfills by promoting
recycling and thorough waste segregation.
Trends in waste and recycling rates(ｔ)(t)
300

Waste
disposed of in landfill
埋立処分廃棄物

250
97.0
200
150

94.5
238

Recycled/reusedwaste
ﾘｻｲｸﾙ･有価物

94.1

95.2

220

92.1
244

Recycling rate
リサイクル率

253
199

96.2

（％）

(t-CO2)

100

97.3

93.9
237

96
92

237

251

100

88
84

50
14

11

11

2015

2016

2017

21

22

19

15

7

2018

2019

2020

2021

2022
(年度)
(FY)

0

Examples of initiatives

80＊1 Zero emissions: Achieving a level of zero waste disposed of in landfills◼ Reduction
Previously, we had used bubble wrap bags to send certain
components to our OEM manufacturers. After unpacking, thesewere disposed of as industrial waste. We were able to reduce
the amount of waste by adopting a new packing method using
reusable returnable containers. We also improved thereusability of these containers through means that include theuse of rubber bands to keep their lids in place.
◼ ReuseChip components are delivered wound on plastic reels like tape.
Previously, we disposed of the used reels as stable industrial waste.
But since they remain clean and in good shape after use, now we have suppliers
collect them for reuse.

◼ Recycling
Defective units that could not be shipped as products and substrate scraps cut off in the production process were
disposed of as industrial waste. Now, we separate them into metals, plastics, and other materials before disposal, so thatthey can be recycled as cast ingots or auxiliary combustion materials in furnaces.
In FY 2022, we began recycling parts containers, solder tank filters, cleaning rags, and other materials. As a result, wewere able to reduce the waste disposed of in landfills by about 50% from the previous fiscal year.

37

COSEL Co., Ltd. Social and Environmental Report 2023

Reducing paper use
Trend in paper use

Since FY 2017 development sections have beenswitching to digital plans, helping to reduce paper use.
Sales sections have also moved forward with switching
to digital product catalogs. We plan to eliminate all
general product catalogs in paper form in FY 2023.
Each section is taking steps, such as refraining from
distributing paper materials in meetings, and employees
are increasingly conscious of paper use, for example, byprinting on both sides of paper.
We will continue striving to reduce paper use in the
future as well.

Environmental impact reduction activities at overseas facilities
Our increasingly global organization includes overseas facilities, such as sales facilities in Asia, the USA, and Europe, andproduct and component production facilities in China and Vietnam.
Reflecting this global structure, we are promoting environmental impact reduction activities at each facility.
At production facilities, which have particularly high environmental impacts, we are developing structures for continual
improvement in environmental conservation, legal and regulatory compliance, and pollution prevention.
We also are promoting green procurement as we work toward a thorough quality control structure capable of preventing
inclusion, mixture, and shipment of harmful substances in products through use of fluoroscopy X-ray equipment and othermeans.
We also are taking active steps to recycle wastes from production, reduce waste, and conserve energy.
◆ Sales facilities• COSEL USA INC.
• COSEL EUROPE GmbH
• COSEL ASIA LTD.
• COSEL (SHANGHAI) ELECTRONICS CO., LTD.
• SHANGHAI COSEL INTERNATIONAL TRADING CO., LTD.
• Powerbox International AB◆ Production facilities• WUXI COSEL ELECTRONICS CO., LTD. : Products (power supply equipment)• COSEL VIETNAM CO., LTD. : Produces components (transistors used in power supply equipment)

WUXI COSEL ELECTRONICS CO., LTD.

COSEL VIETNAM CO., LTD.

38

COSEL Co., Ltd. Social and Environmental Report 2023

Progress of environmental protection activities
Environmental-protection history
FY1990Began recycling wastes

FY1999Earned ISO 14001 certification

FY2000Began publishing Environmental Report

FY2001Adopted environmental accounting
Began lead-free efforts

FY2002Adopted solar power equipment: 60 kW at head-office factory

FY2003

Began activities to eliminate fully six substances covered by the RoHS Directive
Began green procurement

FY2004

Eliminated use of HCFCs in processes
Adopted solar power equipment: 50 kW at Tateyama Factory

FY2005Adopted fluoroscopy X-ray analysis equipment
Launched environmental education for all employees

FY2006

Launched RoHS compliance declarations
Began issue of certificates of nonuse of six substances covered by the RoHS Directive
Joined the Japan Green Procurement Survey Standardization Initiative (JGPSSI)FY2007Adopted solar power equipment: 50 kW at Tateyama Factory (phase one of expansion: total 100 kW)
Began encouraging seasonal business attire to save energy

FY2009Began JAMP_AIS data provision
Began ICP (precision chemical analysis) data provision
Joined the Joint Article Management Promotion-consortium (JAMP)

FY2011Adopted solar power equipment: 50 kW at Tateyama Factory (phase two of expansion: total 150 kW)

FY2012

Formulated the Business Continuity Plan (BCP)

FY2013

Began publishing environmental and chemical data on website

FY2014Began switching to LED lighting inside Company facilities
Began the use of energy-saving solder tanks developed in house

FY2015Compliance with the Act on Rational Use and Appropriate Management of Fluorocarbons
Began publishing the CSR Report as successor to the Environmental ReportCompliance with the Act on Preventing Mercury Pollution of the Environment

FY2017Began collecting environmental and chemical data using a portal site
Achieved full compliance with amended RoHS Directive

FY2018FY2021

Began providing environmental and chemical data using chemSHERPA
Announced support for TCFD, joined TCFD Consortium
Product packaging materials: Began transitioning from plastic to paper packaging materials
Began the transition to renewable energy (R&D Center: 100% renewables)

FY2022

Tateyama Factory: Achieved zero LPG use by switching from GHP to EHP
Began publishing the Social and Environmental Report as successor to the CSR Report

39

COSEL Co., Ltd. Social and Environmental Report 2023

Promotion of environmental management of chemical substances
Environmental management of chemical substances
Since Agenda 21, an action plan that includes “Environmentally sound management of toxic chemicals, including theprevention of illegal international traffic in toxic and dangerous products,” was adopted at the UN Conference on Environmentand Development (UNCED) in 1992, stricter regulations have been adopted on toxic substances both in Japan andworldwide. These include the EU REACH framework and the EU RoHS Directive. Manufacturers face demands to produce
more environmentally friendly products.
At COSEL, we issued the Green Procurement Standards to specify prohibited substances and controlled substances for
products and plant activities. We apply these Green Procurement Standards both inside the organization and as conditions oftransactions with suppliers to carry out environmental management of chemical substances that ensures customers can use
our products with peace of mind.
Management of new components, new products, and mass-produced products
Since FY 2006, COSEL has employed a system that uses X-ray fluorescence analysis*of individual components to exclude
contamination by chemicals harmful to the environment. Through this X-ray fluorescence analysis, we confirm and verify
compliance with the RoHS Directive.
◼ Adoption of new components and introduction of new products
When employing a new component, we ask the suppliers to submit a Warranty for Non-inclusion of RoHS Materials to verify
that it does not contain any substances restricted by the RoHS Directive.
Furthermore, we obtain a list of materials used in each component and check the actual component against the list to makesure that there are no omissions. Then, we compare data on chemicals harmful to the environment with the results of X-ray
fluorescence analysis and register only those components that have been found to present no issues.
◼ Acceptance of purchased components
We also conduct X-ray fluorescence analysis at the stage of acceptance of components by employing a frequency based on
the applicable risk rank, to check whether components delivered contain any chemicals harmful to the environment.

X-ray fluorescence spectrometer*X-ray fluorescence analysis
X-ray fluorescence analysis is a method of analysis in which the atoms in a molecule are irradiated with
X-rays to identify the atoms present in a sample from the characteristic wavelength and energy intensityof the X-rays reflected from them.

◼ Operation of a portal site for suppliers
Since June 2017, we have used a portal site developed in house to enable efficient data collection through exchange of datafrom suppliers on the content of chemicals harmful to the environment and our own green procurement standards.

40

COSEL Co., Ltd. Social and Environmental Report 2023

RoHS/REACH compliance
The RoHS Directive came into effect on July 1, 2006*1. It restricts the use of six substances that negatively impact the humanbody and the natural environment (mercury, lead, cadmium, hexavalent chromium, PBB, and PBDE).
Furthermore, the Directive was revised on January 3, 2013. Although the restricted substances and their tolerated maximum
concentration values remain the same in the revised Directive (2011/65/EU: RoHS2), the number of subject product categories
was increased, and CE marking requirements were added.
COSEL achieved full conformity to the limits on the content in our products of these six substances specified by the RoHS
Directive in February 2006 and began displaying the CE mark in accordance with the RoHS Directive in June 2015*2.
The EU Commission Delegated Directive (EU) 2015/863 added four phthalates*3 to the substances subject to the RoHS
Directive in June 2015, and the number of restricted substances was increased from six to 10 on July 22, 2019.
We are responding through means that include investigating the content of the four phthalates contained in our products andchecking on production processes.
In addition, in May 2020 we ceased the manufacture and discontinued all concurrent production of eutectic solder products.
The REACH regulations also require all companies manufacturing or importing chemical substances in quantities of one ton ormore per year in the European Union to register information on those substances in the European Chemicals Agency (ECHA)
database.
Failure to register means the substance may no longer be manufactured or imported by those companies in the EU.
Since new substances are added to the REACH list of Substances of Very High Concern (SVHC) every half year, we expect
suppliers to provide the latest information on contained substances in a timely manner.
Information on compliance with the RoHS Directive and information on SVHC content under REACH Regulations are publishedin certificates of the nonuse of RoHS substances and provided on our website as data for use with the chemSHERPA tool forcommunication of information on environmentally harmful chemical substances, developed by the Ministry of Economy, Tradeand Industry and operated by the Joint Article Management Promotion-consortium (JAMP) to allow companies that procure the
COSEL's products to quickly and efficiently acquire information on contained chemical substances.
*1 RoHS Directive
An EU directive that restricts the use of certain hazardous materials in electrical and electronic equipment.
The use of six substances (mercury, cadmium, lead, hexavalent chromium, polybrominated biphenyls [PBBs], andpolybrominated diphenyl ethers [PBDEs]) has been prohibited since July 2006.
*2 Not including some products for which cessation of production is planned
RoHS-compliant products are identified by the letter “R” at the end of their lot numbers. (Some models show have theletter “R” in the upper right of the label.)*3 Four phthalic acids
Di (2-ethylhexyl) phthalate (DEHP)
Benzyl butyl phthalate (BBP)
Dibutyl phthalate (DBP)
Diisobutyl phthalate (DIBP)

Pb
Lead
PBB
Polybrominated biphenyls

Hg
Mercury

CertainHazardous
Substances
PBDE
Polybrominateddiphenyl ethers

DIBP
DEHP DBP
BBP

Cd
Cadmium

Cr6+
Hexavalent chromium

4 phthalates

After July 22,2019

41

COSEL Co., Ltd. Social and Environmental Report 2023

Governance system
Corporate governance system
Corporate governance
COSEL considers corporate governance to be an important topic of management. Together with striving to improve management
efficiency, aiming to be a company that rewards the trust and expectations of various stakeholders, we have also shifted to a
Company with Audit and Supervisory Committee as part of system improvements intended to enable management oversightfunctions and compliance to function smoothly.
Based on our management philosophy identifying "Responding to the Trust of Society by Putting Quality as the Most Important
Priority" as a fundamental management concept, we strive to improve the corporate governance system by utilizing the concept
and techniques of total quality management (TQM).
Corporate governance system
General Meeting of Shareholders
Appointment /Dismissal

Appointment /Dismissal

Appointment /Dismissal

Board ofDirectors

Audit & Supervisory
Committee

Accounting
Audit

Audit

Director

Director(Audit & Supervisory
Committee Members)

Accounting
Auditor
Auditing Firm

Report /Cooperation
Audit

Report /Cooperation

Inquiry /ReportNomination andRemuneration
Committee

Appointment /Supervision

Audit Office

ReportPresident
Command /Supervision

Executive Board
Risk management /Compliance
Committee
Environment
Committee
Quality AssuranceCommittee

PolicyDetermination
Conference
Audit(Expanded)Management
Conference

ReportAccounting Audit
For each division and group company【Executive Board】【Board of Directors】
The Board of Directors makes decisions on matters as
required by laws, regulations, and the articles ofincorporation, as well as management policies and businessexecution. The Board oversees the performance of theduties of the CEO.
Meetings of the Board of Directors are usually held once amonth. Directors execute business activities in their areas of
responsibility under the direction of the CEO based on the
management policies as determined in meetings of the Boardof Directors.

Under the guidance and supervision of the CEO, the Board
of Executive Officers executes its assigned duties inaccordance with decisions made by the Board of Directors
or directors to whom decision-making authority is delegatedby the Board of Directors.
Meetings of the Board of Executive Officers are held once amonth, in principle, and at other times as necessary.

【Nomination and Remuneration Committee】【Audit Office】【Audit and Supervisory Committee】【Management Meeting】

This committee deliberates and advises on the nomination
The Audit Office, which is under the direct control of theand dismissal of directors of Group companies andpresident, has been established as an internal auditing
remuneration of directors other than Audit and Supervisory division, and internal control functions are audited inCommittee members and of executive officers as an advisory cooperation with Audit and Supervisory Committee members,
body to the Board of Directors.
the Audit and Supervisory Committee, and accounting
auditors.
Chaired by a director and full-time Audit and Supervisory
Committee member, this Committee meets once a month inprinciple and at other times as necessary.
Audit and Supervisory Committee members attend meetingsof the Board of Directors and other meetings to audit theperformance of the duties of directors.
42

This meeting is held for reporting and deliberation on
business execution policies and plans based on fundamental
policies decided on by the Board of Directors and on
implementation of important operations. It is held once every
three months with the participation of Directors, division
heads, and other members of management.
COSEL Co., Ltd. Social and Environmental Report 2023

Risk management
Risk compliance initiatives
COSEL has established Risk Management Regulations and addresses corporate risks in line with the following categories.
In normal times, each division plays the main role in risk management, which is treated as an item subject to annual policy
management and daily management in each division as part of its policy management activities.
For crisis management in response to contingencies such as disasters, accidents, and fires, we have established Regulations
on Responding to Crisis Situations under which we give top priority to protecting human life, rescue, and minimizing the impact
on customers in accordance with the Emergency Initial Response Manual. In addition, the Risk Management/Compliance
Committee reviews and assesses subject risks and studies and implements related countermeasures.
In addition, we established the Business Continuity Plan (BCP) Regulations and maintain a system to enable the swift
resumption of business operations in response to contingencies.
Outline of risks

Compliance
As it aims to ensure thorough legal and regulatory compliance (hereinafter referred to simply as “compliance”), the COSEL
Group has established the Charter on Ethics and Standards for Voluntary Action as principles to be followed by all Group
employees. We established a “COMPLIANCE MANUAL” in April 2023 and are making efforts toward its thoroughimplementation.
Compliance is a basic part of everyday business. To ensure that all employees understand this, the General Affairs Department
develops and maintains related systems and carries out training and awareness-raising activities, with the General Affairs
director serving as the chief compliance officer.
The Audit Office, the internal auditing organization under the direct control of the president, verifies whether business is being
conducted in compliance with laws and regulations, the articles of incorporation, and internal rules and regulations and reports
its findings to the Board of Directors and the Audit and Supervisory Committee.
The Board of Directors reviews the compliance system on a regular basis and strives to identify any issues and implement
improvements in response.

COMPLIANCE MANUAL43

COSEL Co., Ltd. Social and Environmental Report 2023

Compliance Education
To prevent compliance violations, it is essential that not only
managers, but all employees recognize the risks of complianceviolations in their work and understand what kinds of acts
constitute violations of laws and regulations.
COSEL holds an educational program on compliance for all
employees once a year, intended to prevent violations of therules of employment and the Financial Instruments andExchange Act (i.e., insider trading) and other laws andregulations. By offering this program continuously, we aim toensure that compliance-oriented values and attitudes take firmroot within the organization.

Business Continuity Plan (BCP)
COSEL launched its Business Continuity Plan (BCP) project after the Great East Japan Earthquake in March 2011, toestablish a disaster response system and procedures for initial responses and resumption of business operations.
We have taken seismic retrofitting measures for production equipment and inspection equipment at COSEL Group plants andestablished a framework for backing up information systems and enabling backbone systems to operate safely even in theevent of a disaster.
We also conduct regular earthquake evacuation drills to be ready for earthquake disasters.

Deployment of BCP initiatives in the supply chain
While the COSEL Group already had implemented its own BCP initiatives through 2014, in 2015 we launched BusinessContinuity Management (BCM) efforts for the entire supply chain. We ask suppliers (component manufacturers) todevelop and continually implement BCM activities.

44

COSEL Co., Ltd. Social and Environmental Report 2023

Response to Security Export Control Regulations
COSEL’s security export controls
Amid global efforts to prevent proliferation of weapons of mass destruction and excessive accumulation of conventional
weapons, companies must strengthen their voluntary export controls in response to the need for nonproliferation export
controls.
COSEL has developed internal rules on implementing export controls and established the Export Control Committee tomaintain its controls, as part of our voluntary export control efforts.

Export control system

Determination of whether products are subject to controls
In order to prevent products that are subject to export controls from being exported without permission, we examine all our
products in light of applicable laws to check whether they are subject to control prior to exporting them.
Transaction screening
We perform transaction screening on customers prior to commencing transactions with them, in order to prevent transactions
with companies or individuals that could be involved in the development or manufacture of weapons of mass destruction.
Education
We provide regular training for employees in divisions that could be involved in export operations.
Reporting to government agencies
We established the Security Export Control Rules as part of our compliance program for export control. We verify whether
business operations are conducted in line with the Control Rules and report our findings to the Ministry of Economy, Tradeand Industry.

Responsible political involvement
COSEL’s Standards for Voluntary Actions state, “We take a neutral stance to politicians and political groups and neverprovide any improper benefits or favors to them.” We also comply with the Public Offices Election Act, the Political Funds
Control Act, and other laws and regulations related to politics, and we make no contributions or donations to individual
politicians that would be prohibited by law.

45

COSEL Co., Ltd. Social and Environmental Report 2023

IP management system
The Intellectual Property Committee, composed mainly of development engineers, plays a central role in activities to acquireand protect intellectual property rights, in cooperation with the New Product Development Group, inventors, and outside
experts.
We regularly check on the state of use and validity of intellectual property rights acquired, as part of management efforts
intended to maintain only the minimum necessary rights.

Trend in number of patents(Number)
200
180
160

165

163

159

156

2021

2022

150

140
120
100
2018

2019

2020

(FY)
(FY)

Basic policy for information security
As a company manufacturing and selling switching power supplies and noise filters, we consider it is our social
responsibility to protect the information assets we possess, including those of our clients. We hereby establish the basic
policy for information security and declare that we will follow it.
1. We will establish a system to promote information security to manage it properly.
2. We will provide education necessary to ensure information security.
3. We will introduce proper management measures and work hard to prevent information security incidents and accidents
from occurring.
4. In cases where information security incidents or accidents occur, we will promptly investigate the cause and work hard tominimize damage and prevent reoccurrence.
5. We will comply with laws and regulations, national guidelines, and other social norms relating to information security.
6. All employees shall comply with rules and regulations relating to information security and we will implement punitive
measures against those who violate them in accordance with our internal rules and regulations.
7. We will develop and implement internal rules and regulations in accordance with this basic policy.
8. We will maintain the activities mentioned above and strive to improve them continuously.

46

COSEL Co., Ltd. Social and Environmental Report 2023

Messages from outside Directors
Sustained growth through continual
review of the essence of COSEL
management

Outside Director

Yasuro Uchida
Professor, Graduate Schoolof Social Sciences,
University of Hyogo

More than 20 years have passed since we entered the twenty-first
century. This has been a period of changing business activities in
response to global economic and geopolitical transformations as well aschanges in social activities due to the unprecedented COVID-19
pandemic.
Under these conditions, COSEL was able to make considerable
progress in business results in the year ended May 2023. This is thanks to
the way customers around the world have continued to use COSEL
products. To ensure that we never forget this fact and become conceited
about the way things are going, I believe that it is essential to continue toask ourselves, what is the essence of management at COSEL?
COSEL has done business under its Management Philosophy of“Responding to the Trust of Society by Putting Quality as the Most
Important Priority.” Human resources are identified as one of the essential
elements of this Management Philosophy. In fact, QC circle activities led
by these employees have been underway at COSEL for more than 40
years.
In QC circle activities, each team proposes ideas based on the themesof how we can improve quality even more and what we need for further
growth in efficiency. If asked what the true essence of these activities is, I
believe that we could answer: organizational learning activities throughsolving familiar problems. These activities are proving a great success.
For example, a companywide conference held each year presents awards
to the most outstanding teams. For more than 40 years, QC circle
activities have converted what started as tacit knowledge held byindividuals to formal knowledge in their teams, and the resulting ideas
have been polished further and shared company-wide through thesecompany-wide conferences. This series of activities for systematic sharingof various observations expresses the true essence of COSEL's
management.
In recent years, the focus of research on the global competitive strategy
has shifted from the question of what corporate strengths are to that of
how such strengths can be generated. This concept is called dynamic
capability. It is theorized and requires organizational learning. As an
outside director, I will continue to make recommendations to ensure that
we never lose sight of this essential element of management.

47

COSEL Co., Ltd. Social and Environmental Report 2023

From employee satisfaction toemployee engagement

Outside Director

Akio Misuta
President and CEO,Tombow Beverage Co.,Ltd.

I am proud of how COSEL has been able to continue to record highprofits even amid the global supply-chain paralysis caused by the
pandemic and international disputes.
Switching power supplies support human life through their use in nearly
all electronic devices. I believe that these high profits are proof thatCOSEL's corporate goals until now have been right on target. But intoday's uncertain world, there is no guarantee that today's strengths willcontinue into the future indefinitely. I think a truly strong company is one
that constantly creates new strengths even in a changing environment. My
modest goal is to provide advice to help COSEL be such a company.
To create such strengths, not only product quality but also business andservice quality will be increasingly important. I expect social nature andsensitivity to be keys to achieving these. It will be essential for us not only
to improve the quality and efficiency of switching power supplies but also
to consider convenience to users and the situations in which they will be
used in final consumer products. While technological improvements willremain an important theme, I believe that high added value can begenerated through efforts, such as lessening the effort required by users
and making product use more enjoyable.
Under conditions of rapid depopulation and uncertain economic
prospects, even the top employers are faced with the important challengeof securing capable human resources amid rising separation rates. From
now on, it will be essential to increase employee engagement with thecompany, instead of just targeting higher employee satisfaction throughmore comfortable work styles. Social and environmental developments inline with this trend will be in a positive direction that includes corporate
objectives, rather than simply overcoming challenges from a passive
approach.
I believe that it will be vital to incorporate effectively into businessactivities diverse views and proposals from women, non-Japaneseemployees, and others, from the forward-looking perspective of putting
this sensitivity to use in business operations and services.

48

COSEL Co., Ltd. Social and Environmental Report 2023

Sustainability Data
E: Environmental data
FY 2018

FY 2019

CO2 emissions (Scope 1, Scope 2)

t-CO 2--

FY 2020

FY 2021

2,967

2,655

Electricity use
Percentage of conventional power sources
WastesｋWｈ%t5,177,101
96.0
268.8

FY 20222,270

4,627,806
95.5
208.5

5,001,522
96.1
240.8

4,850,286
93.6
246.3

5,145,408
79.7
258.2

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

346
131
477
38.6
41.8
39.5
14.6
20.2
16.1
20
4
24
5.8
3.1
5.0
10
1
11
21
1
22
ー

353
130
483
38.6
42.7
39.7
14.4
20.9
16.1
15
5
20
4.2
3.8
4.1
12
1
13
15
5
20
ー

360
131
491
38.6
43.4
39.9
14.5
21.6
16.4
16
1
17
4.4
0.8
3.5
12
5
17
17
2
19
ー

361
131
492
39.0
44.3
40.4
16.9
22.4
16.9
6
3
9
1.7
2.3
1.8
13
7
20
15
1
16
ー

353
126
479
39.1
45.6
40.8
15.1
23.7
17.4
19
5
24
5.4
4.0
5.0
17
9
26
6
1
7
72.2

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

43
0
43
0.00
7

42
0
42
0.00
6
1.74
6

46
0
46
0.00
6
1.70
9

46
0
46
0.00
6
1.59
10

60
3
63
4.76
9
2.37
13

S: Social data
■ Employee data
Employees

Average age

Average years of continuous service

Number separated

Separation rate

Number re-employed

New hires (new graduates only)

Male-female wage disparity■ Diversity and inclusion
Number of managers

Women as a percentage of managers
Number of employees with disabilities
Employment rate
Number of non-Japanese national employees■ Work-life balance
Percentage taking paid vacation (generalpersonnel)
Percentage taking childcare leave
Number of days of childcare leave taken bymale employees

MaleFemaleTotal
Male
FemaleTotal
Male
FemaleTotal
Male
FemaleTotal
Male
FemaleTotal
Male
FemaleTotal
Male
FemaleTotal
Male/female

People

Years

Years

People%PeoplePeople%Male
FemaleTotal-

People%PeopleFY 2018

FY 2019

FY 2020

FY 2021

FY 2022

-

%

67.2

69.8

63.5

61.0

69.5

Female
Male

%

100.0
0.0

100.0
4.8

100.0
18.2

100.0
41.2

100.0
50.0

-

-

-

-

92.0

-

-

-

-

46.3
14.0

Max.
Days

Average
Min.
Percentage of employees taking childbirthnursing leave
Number taking long-term-care leave

-

%

66.7

76.2

36.4

70.6

83.3

-

People

0

0

1

0

3

■ Human-resource development
Annual hours of education per person
Annual investment in education per person
Number undergoing human skills andmanagement skills training
Number undergoing career training
Number undergoing distance learning
Number undergoing language learning:
Conversational English

H
Yen

FY 2019

FY 2020

FY 2021

FY 2022

88.5

79.1

82.5

84.1

77.7
86,458

-

-

-

-

18

13

0

27

27

PeoplePeople

50
28

31
77

69
80

51
87

40
114

12

15

12

10

7

13

11

8

8

9

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

91.9

96.0

93.8

94.6

99.8

50.2

60.5

53.1

56.9

31.8

%

0.6

0.8

0.2

1.4

1.9

NumberNumberNumber

6
13
2

2
13
2

7
13
3

10
14
1

3
11
3

PeopleHealth and productivity management/Industrial
health and safety
Percentage undergoing

FY 2018

PeopleConversational Chinese■

0

regular health checkups
Percentage with issues
identified

Percentage on leave due to emotional
conditions
Number of on-the-job accidents
Number of commuting accidents
Number of auto accidents at work

49%

COSEL Co., Ltd. Social and Environmental Report 2023

.

To be COSEL;To ensure that all COSEL activities satisfy customers;
And for our own happiness as we come together to work every day at
COSEL.
To build; To persevere; To connect.

From the COSEL Mindset

1-6-43 Kami-Akae Machi, Toyama City, Toyama Prefecture
930-0816, Japan
Contact us
General Affairs Division
TEL: +81-76-432-8151 FAX: +81-76-441-5324
Email: cosel@cosel.co.jp