2021
Corporate Social
Responsibility Report

Cosel Co., Ltd

Editorial Policy

Table of Contents

Cosel Co., Ltd. issued its first
Environmental Report in 2000 and has
disclosed information on its environmental
protection activities ever since.
In 2015, we decided to issue this CSR
Report in order to enhance communication
with stakeholders by reporting on not only ourenvironmental efforts but all of our initiatives
related to corporate social responsibility(CSR).
In the future as well, Cosel Co., Ltd. will
strive to contribute to the realization of asustainable society through our businessactivities while further enhancing this Report
so that it can fulfill its role as a tool forcommunication with stakeholders.

Editorial Policy / Table of Contents ...............

1

Commitment of Top Management ................

2

Management Philosophy, Charter on Ethics andStandards for Voluntary Action .....................

3

Company Overview, Financial Standing .......

5

Business Outline ...........................................

6

Examples of Use of Regulated DC Power
Supplies ........................................................

7

Company Introduction ...................................

9

History ...........................................................

10

Together With Our Customers ......................

11

With Our Shareholders and Investors ...........

12

With Our Clients ............................................

13

With the Community .....................................

14

With Our Employees ....................................

15

SDGs Initiatives ...........................................

16

The Cosel Group's CSR Priorities and SDGs
Initiatives ......................................................

17

Reporting Period
May 21, 2020 to May 20, 2021

Referenced Guidelines
ISO26000

Activity Report Based on
CSR Priorities

1

Complying with the Letter and the Spirit of theLaw, as a Good Corporate Citizen ................

18

Awareness and Action from a Global Perspective........................................................................

22

Workplaces Full of Vitality and Human-resource
Development ...................................................

24

Environmental Protection ................................

29

Fair and Equitable Transactions ......................

42

Building Improved Relations of Trust with
Stakeholders ……………………………………..

44

Community Involvement and Community
Development ……………………………………..

50

Cosel Co., Ltd. Corporate Social Responsibility Report 2021

Commitment of Top Management
Cosel’s CSR is based on its Management Philosophy of “Living up to our reputation insociety by a quality-first approach”
Based on our management philosophy “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 balancing contributions to the realization of a sustainable
society with our own sustained growth.
We will realize such contributions to the realization of a sustainable society and sustained growth through manufacturing
and providing products and services. 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 ofquality that are essential to the sustainability of society, including the quality of the services and interactions we provide, thequality of the value we provide in response to changing needs, and the quality of our work. Cosel’s attitude toward CSR isbased 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 among 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 theCosel 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 a company
that develops and manufactures electric products, we believe that we can contribute to the realization of a sustainable
society by promoting energy conservation by our customers and in social systems through advancing efforts to lessen theenvironmental impacts of activities such as procurement and production as well as developing and supplying products thatcan deliver significant energy-conservation effects by reducing power loss. We believe that our environmental initiatives
also will 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 face to facewith a wide range of social issues and challenges. Customers' needs also have grown increasingly diverse with theprogress of globalization. This means that the definition of “quality” referred to in our management philosophy also haschanged and grown more diverse. We believe it is vital to accurately identify such changes in the concept of “quality” in atimely manner.
Cosel has set “Grasping needs from a customer’s perspective and developing high-value added products and services”
as the vision in the ninth mid-term management policy. This vision 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, andto 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 enableeach and every employee to thrive
The starting point of manufacturing is human-resource development, andabove all it is our people who support our business 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 and leading to our perpetual growth
as a company.
We also believe that improving specialized abilities in areas such astechnologies, skills and management techniques, as well as sharing ourindividual ideas, respecting each other, and supporting each other’s growth
should be fundamental for enhancing our organizational abilities.
This is why we value communication and teamwork so highly.
We aim to be a group of autonomous human resources who are able tolearn, think, and act on their own. We are confident that broadening the domains
in which they can succeed will make work more rewarding of each individual andenable our corporate growth as well.
We will strive to develop a culture and environment in which autonomous
human resources can grow, to enable our continued growth as an organization.
President & Chief Executive Officer, Cosel Co., Ltd.

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Cosel Co., Ltd. Corporate Social Responsibility Report 2021

Management Philosophy
Based on our management philosophy, Cosel strives toimprove our corporate culture continuously by utilizing the concept
and techniques of total quality management (TQM).
In increasingly competitive electronics markets such as theswitching power supply market, we strive to demonstrate ourpresence and competitive advantage while clearly presenting ourown unique vision, to meet the expectations of society by providing
attractive technologies and products of higher quality.

Management Philosophy
Responding to the Trust of Society by Putting
Quality as the Most Important Priority

Charter on Ethics and Standards for Voluntary Action
The Charter on Ethics and Standards for Voluntary Action have been established to realize ourmanagement 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 businessactivities, and act in accordance with social ethics.

Charter on
on Ethics
EthicsCharter(1) Compliance with laws and social norms
Comply with laws, social norms, common sense, and rules, as well as the spirit thereof, in addition tointernal 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 tosociety 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 withnature 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 meaning of the Charter on Ethics andStandards for Voluntary Action

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.
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Cosel Co., Ltd. Corporate Social Responsibility Report 2021

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 anti-social forces
We will never form a relationship with any anti-social 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 that would
damage them.
(10) Protection of intellectual property
We will work hard to protect our intellectual properties and take all possible measures not to violate the intellectual
property rights of others.
(11) Responsible performance of duties
We will perform our duties responsibly in accordance with laws and internal rules and regulations.
(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 internal rules and regulations concerning a safe and healthy workplace and work hardto 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, place oforigin, 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, customs, and cultures while conducting our business activities overseas.
(19) Environmentally-conscious business activities
We will comply with environmental laws 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. Corporate Social Responsibility Report 2021

Company Overview■Company name:■Headquarters:

COSEL Co., Ltd.
1-6-43 Kami-Akae Machi, Toyama City, Toyama Prefecture, 9300816 Japan
Manufacture and sale of electronic devices and electric machinery
Regulated DC power supplies (such as switch mode power supplies)
Masato Tanikawa
July 26, 1969
2,055 million yen (as of May 2021)
27,020 million yen (consolidated, period ended May 31, 2021)
698 (consolidated, period ended May 31, 2021)
COSEL U.S.A. INC. (San Jose, 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 (Gunesta, Sweden)■Lines of business:■Main products:■Representative:■Established:■Capital:■Net sales:■Employees:■Affiliates:

Financial Standing (Consolidated)
Operating profit/Ordinary profit/Net income

Sales
JPY millions

30,000PRBX Product

EMI Filter

On-Boad type Power supply

Unit type Power supply

JPY millions

6,000

25,0005,000

20,0004,000

15,0003,000

10,000

2,000

5,000

1,000

0

Operating profit

Ordinary profit

Net income0
2017/5

2018/5

2019/52020/52021/52017/5

JPY millions

2019/52020/52021/5

Net income per share/Return on equity

Net assets/Total assets

JPY millions

Net assets

50,0002018/5100

Total assets
40,000Net income per share
Return on equity

（%）
9.0

90

8.0

80

7.0

70
30,000

6.0

60

5.0

50
20,000

4.0

40

3.0

30
10,000
0

20

2.0

10

1.0

0
2017/5

2018/5

2019/52020/52021/50.0
2017/55

2018/5

2019/52020/52021/5

Cosel Co., Ltd. Corporate Social Responsibility Report 2021

Business Outline
Electronics products such as industrial and consumer devices are made using numerous
electronic components, such as semiconductor devices. For this equipment to operate, it isessential to convert the alternating-current (AC) electrical power delivered to factories andhouseholds to stable direct-current (DC) electricity. Cosel's regulated DC power supplies make thispossible.
In particular, switch mode power supplies are our main products. They are employed in manyelectronic devices such as those used in information and telecommunications systems, medical
devices, and factory-automation equipment because they are compact, lightweight and highly
efficient.
Regulated DC power supplies can be described as the hearts of these products, and they truly
hold the key to the future of the age of electronics.
Through never-ending interaction with new technologies, we continue to develop highly reliable
products that will help to build the future of electronics.

Our products

Unit power supplies

Onboard power supplies

Power supplies enclosed in cabinets* Mainly AC-DC converters

Power supplies implemented on customers' circuitboards* Mainly DC-DC converters

Noise filters
Prevention of malfunctioning caused bynoise introduced from power-supply lines<Delivery of electricity>

Power plant

Substation

Pole-mounted
transformer

OutletStabilized DC
power supply

DC

AC

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Cosel Co., Ltd. Corporate Social Responsibility Report 2021

Examples of Use of Regulated DC Power Supplies: Part 1
Signs

Industrial equipment

Stadium large
LED sign
board

Communicationequipment

Industrial
robot

Advertisinginformation
signboard
Mobile phone base station

CP applied equipment

Medical equipment

CT scanner

Ticket-vending machine

ATM

Other equipment

EV charger

Various control boards

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Cosel Co., Ltd. Corporate Social Responsibility Report 2021

Examples of Use of Regulated DC Power Supplies: Part 2

Large LED Sign for advertisement

LED lightingHigh speed train ATC on-board equipment

Power converter for wind power generator

Cosel's regulated DC power supplies are used in a wide range
of industrial machinery, from devices out of view from thegeneral public to machinery operating inside factories.

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Cosel Co., Ltd. Corporate Social Responsibility Report 2021

Company Introduction
Head office
Site: 8,990 m2
Total floor area: 11,694 m2
60 kW solar panels

R&D Center
Site: 4,906 m2
Total floor area: 8,206 m2

Tateyama Factory
Site: 47,367 m2
Total floor area: 11,579 m2

150 kW solar panels

Training Center
Total floor area: 884 m2

9Cosel Co., Ltd. Corporate Social Responsibility Report 2021

History
Our history since our founding (in 1967) is summarized below.
A development building was completed on the head office site in November 2018, to contribute to our successand survival in competitive markets. By bringing together development divisions, We carry out new-productdevelopment with a sense of urgency while also striving to deploy the technologies it develops horizontally
across the organization, to bring attractive products to market.

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Cosel Co., Ltd. Corporate Social Responsibility Report 2021

Together With Our
Customers

Our basic thinking on quality
Cosel has established the quality policy “Live up to our reputation in society by a quality-first approach,”based on our management philosophy (organizational goal) of “Responding to the Trust of Society by Putting
Quality as the Most Important Priority.”
The bases of quality activities are product reliability and delivery of peace of mind to customers. We believethat 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 ofmanagement, and we aim to link this concept to our sustained growth as an enterprise through raising thelevels 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, and service, in order to provide our customers with attractive products and services that win their trustand deliver peace of mind and satisfaction.

Sustained growth

TQM concept
We have conceptualized our thinking on TQM
as illustrated to the right, and we strive to ensure
its thorough understanding throughout theorganization.

Management
philosophy and vision
Strategies andpolicies

TPS

IM

Reforms andimprovements
Policies
Managem
ent

TPM

QC
Circles

IoT

Cooperative structures andcollaborative abilities

Human-resource development
QC circles
Organization

Organizati
on

Solidarity

Solidarity

Organizati
on・・・

Solidarity

Values (e.g., the Cosel Mind), Philosophies, Interpersonal
Relations, Environment
Psychological safety, peace of mind

Development of the quality assurance system
Cosel's quality management system (QMS) has been developed in accordance with the requirements of ISO
9001, the international quality management standard, and we monitor each process and carry out improvement
activities as appropriate.
We strive to promote quality assurance activities at all stages from the start of the manufacturing process
through the time when customers finish using our products, in order to deliver products that will satisfy ourcustomers. Specifically, we pursue customer satisfaction by identifying key points in every stage of our businessactivities, from product planning through product development, production, sales, and customer care.
Based on inputs such as valuable customer feedback, we accurately identify customer needs and plan
products to meet them. At the product-development stage, we verify quality utilizing functional, performance,
environmental, and other indicators, while designing products that customers can use with peace of mind. We
also emphasize quality at the product-planning stage, endeavoring to prevent potential defects through expert
design review and use of methods such as failure mode and effects analysis (FMEA) and design review basedon failure mode (DRBFM).
At the production stage, we perform thorough quality control in each process and ship only products thathave passed inspection.
We employ a bar-code system that enables us to trace when the components used in products shipped
were delivered to us, so we can narrow down swiftly the affected lots in the event of any abnormalities.
As part of customer care, we provide technical support through a toll-free telephone number and a contact
form on our website, and our dedicated support team strives to respond to inquiries from customers swiftly andaccurately.
The entire organization strives together as one to deliver attractive products and services that win
customers' trust and inspire peace of mind and satisfaction.
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Cosel Co., Ltd. Corporate Social Responsibility Report 2021

With Our
Shareholders andInvestors
Regular general meetings of shareholders
Cosel holds a regular general meeting of shareholders each year in early August. The meeting on August 12,2020 was held at the Toyama Chamber of Commerce and Industry. Shareholders asked us 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 toutilize what we learn from these surveys in our future activities.

Enhancement of tools for providing information
The Cosel website has a “Investor Relations” page on which we provide many shareholders and investors
with timely and equitable access to information. On our website we strive to make a wide range of information
available easily, through content concerning management strategies, financial information, and settlement ofaccounts in addition to descriptions of our businesses and summaries of business performance.
We also have established a Website Committee that deliberates on topics and issues in operating the Cosel
website, striving 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. Corporate Social Responsibility Report 2021

With Our Clients

Partnerships with clients
Cosel strives to build transparent relationships based on mutual trust that enable coexistence andcoprosperity with our partners or clients, from a global perspective of equity and impartiality in compliance withlaws and social norms. We believe that it is vital to make our partnerships with clients even stronger by
maintaining and building on these relationships.

Green procurement in the supply chain
Cosel's products are made using a wide range of materials, and we consider it essential to ensure that they
never contain any substances that could have negative effects on the planet or on human beings, not only whencustomers use them but also when they are disposed of at the end of their product lives and beyond.
Since it would be difficult for Cosel to realize goal through its own efforts alone, we engage in green
procurement in cooperation with the numerous enterprises that make up our supply chain.

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Cosel Co., Ltd. Corporate Social Responsibility Report 2021

With theCommunity

Community contribution activities
Cosel’s Standards for Voluntary Action state, “as a good corporate citizen, each of us will strive tocontribute to the realization of a good society.”
We value interaction and communication with the local community, and we want to contribute toand be involved in community development.
Some specific examples of such activities are shown below.
Support for athletics: Jointly organizing “Cosel Cup Challenge Super Kids” with a local
broadcaster
Internships: Enabling students to deepen their understanding of work, business, and society andto prepare for their professional careers through gaining work experience
Blood donation: Holding employee blood drives in cooperation with the Japanese Red Cross
Society's Blood Center
Fund-raising: Donating the proceeds from a Company bazaar and money collected from
employees to the Community Chest of Toyama
We conduct the above and other activities every year.

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Cosel Co., Ltd. Corporate Social Responsibility Report 2021

With Our
Employees

Aiming for rewarding workplaces
Cosel's activities to realize a sound work-life balance include support for childcare and long-term care toenable employees to live more enriched lives, reflecting consideration for employees' health and safety, healthmanagement, and balances between work and home life. We also aim to realize fulfilling work environments
by creating workplaces full of vitality in which employees can tackle any challenges.
Programs toward this end include health and safety patrols, health-consultation events with an industrial
physician, a thorough leave system (e.g., encouraging employees to take annual paid leave and offering
refreshment leave, healthcare/volunteer leave, maternity leave before and after childbirth, a program ofshortened working hours for childcare, and family-care leave), encourage employee club activities, andoperate an awards system.
We intend to continue providing employees with more comfortable workplaces and making various
improvements so that Cosel and its employees can grow together.

Topics◼ Efforts to stop the spread of COVID-19
Our responses to the COVID-19 pandemic included establishing and thoroughly publicizing and enforcing
within the organization a "Code of Conduct to Stop the Spread," intended not only to keep employees and theirfamilies safe but also to keep the virus out of Company facilities and help stop its spread.
Basic actions to stop the spread• Thorough handwashing, sanitizing, and gargling• Wearing masks• Practicing social distancing• Personal health management (e.g., taking temperature every morning, checking for cold-like
symptoms)
While at the time of writing it appears there still are no signs of the pandemic coming under control, we willcontinue striving to stop the spread of COVID-19 through revising the action policies as circumstances change
and keeping all members of the organization up to date.

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Cosel Co., Ltd. Corporate Social Responsibility Report 2021

Governance

Human rights

Labor practices

Environment

Fair businesspractices

ConsumerissuesCommunity
participationand progress

SDGs Initiatives

The Sustainable Development Goals (SDGs) are international targets for the period from 2016 to 2030,
introduced in the 2030 Agenda for Sustainable Development adopted by a United Nations Summit in
September 2015.
The SDGs consist of the following 17 goals and 169 specific targets.
Cosel plans to engage in various activities to contribute to achieving the SDGs.

GOAL No. Contents
Economic growth must be inclusive to provide sustainable jobs and promote equality.
1
The food and agriculture sector offers key solutions for development, and is central for2hunger and poverty eradication.
Ensuring healthy lives and promoting the well-being for all at all ages is essential to3sustainable development.
Obtaining a quality education is the foundation to improving people’s lives and4sustainable development.
Gender equality is not only a fundamental human right, but a necessary foundation for a5peaceful, prosperous and sustainable world.
Clean, accessible water for all is an essential part of the world we want to live in.
6
Energy is central to nearly every major challenge and opportunity.
7
Sustainable economic growth will require societies to create the conditions that allow
8
people to have quality jobs.
Investments in infrastructure are crucial to achieving sustainable development.
9
To reduce inequalities, policies should be universal in principle, paying attention to the10needs of disadvantaged and marginalized populations.
There needs to be a future in which cities provide opportunities for all, with access to
11basic services, energy, housing, transportation and more.
Responsible Production and Consumption.
12
Climate change is a global challenge that affects everyone, everywhere.
13
Careful management of this essential global resource is a key feature of a sustainable
14
future.
Sustainably manage forests, combat desertification, halt and reverse land degradation,
15
halt biodiversity loss.
Access to justice for all, and building effective, accountable institutions at all levels.
16
Revitalize the global partnership for sustainable development.
17

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Cosel Co., Ltd. Corporate Social Responsibility Report 2021

Governance

Human rights

Labor practices

Environment

Fair businesspractices

ConsumerissuesCommunity
participationand progress

The Cosel Group's CSR Priorities (Based on ISO 26000) and
SDGs Initiatives

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Cosel Co., Ltd. Corporate Social Responsibility Report 2021

Human rights

GovernanceLabor practices

Fair businesspractices

Environment

ConsumerissuesCommunity
participationand progressComplying with the Letter and the Spirit of the Law, as aGood Corporate Citizen
Enhancement of the risk management structure
Risk compliance initiatives
Cosel has established Risk Management Regulations and addresses corporate risks in line with thefollowing 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 haveestablished 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 and other rules and regulations. In addition, the Risk Management/Compliance Committee
reviews and assesses subject risks and studies and implements related countermeasures.
In addition, we have established Business Continuity Plan (BCP) Regulations and maintain a system toenable the swift resumption of business operations in response to contingencies.

Outline of risks

Risks extracted basedon department functions

Risk management innormal times

Crisis management

Handle risks through policy
management activities and daily
management activities

ex. New product development delay

ComplianceHandle risks through risk
m anagement activities* Risks to be managed are consideredas risks to be subjected to crisis

ex. Earthquake

Quality issues

FireImmovable stock

Information
leakage
Theft

Delay in shipping and delivery

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 strive to ensure that all members of the organization
thoroughly understand and follow this charter and standards.
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 Auditors' 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, andinternal rules and regulations and reports its findings to the Board of Directors and the Board of Auditors.
The Board of Directors reviews the compliance system on a regular basis and strives to identify any issues
and implement improvements in response.

Compliance and permeation of the Management Philosophy
Compliance Education
To prevent compliance violations, it is essential that not
only managers but all employees recognize the risks ofcompliance violations in their work and understand whatkinds of acts constitute violations of laws and regulations.
Cosel holds an educational program on compliance forall employees once a year, intended to prevent violations of
the rules of employment and the Financial Instruments andExchange Act (i.e., insider trading) and other laws andregulations. By offering this program continuously, we aim
to ensure that compliance-oriented values and attitudes
take firm root in the organization.

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Cosel Co., Ltd. Corporate Social Responsibility Report 2021

Governance

Human rights

Labor practices

Fair businesspractices

Environment

ConsumerissuesCommunity
participationand progress

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 are expected to 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 to maintain its controls, as part of our voluntary export control efforts.
Export control system
Chief executive of export control

CEO
Direcctor in export control(Director of quality
management)
Export control audit
team

Export Control Committee

Chairman of the Committee

Committee member

Committee member

Committee member

Committee member

Committee member

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, inorder to prevent transactions with companies or individuals that could be involved in thedevelopment 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 have established the Security Export Control Rules as part of our compliance program (CP)for export control. We verify whether business operations are conducted in line with the CP andreport our findings to the Ministry of Economy, Trade and Industry.

Responsible political involvement
Cosel’s Standards for Voluntary Actions state, “We take a neutral stance to politicians andpolitical groups and never provide 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 beprohibited by law.

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Enhancement of the corporate governance system
Corporate governance system
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 also have adopted a Corporate Auditor system as part of system improvements intended toenable management oversight functions 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).

Outline of the corporate governance system(As of May 21, 2021)
Board of Directors

Board of Auditors

The Board of Directors makes decisions on mattersas required by laws, regulations, and the articles ofincorporation, as well as management policies andbusiness execution. The Board oversees theperformance of the duties of the CEO.
The Board of Directors comprises seven directors(including two independent outside directors). Its
meetings are usually held once a month. Directors
execute business activities in their areas of
responsibility under the direction of the CEO, basedon the management policies decided on in meetingsof the Board of Directors.

The Board of Auditors is comprised of three auditors: onefull-time auditor and two external auditors. In addition toauditing units such as individual divisions and overseas
subsidiaries periodically in cooperation with the Auditors’
Office and based on audit plans, auditors also attend
meetings of the Board of Directors and other important
meetings to ascertain the state of business execution.

Auditors’ Office
The Auditors' Office (with a staff of one person), which isunder the direct control of the President, has been
established as an internal auditing division audit internal
control functions in cooperation with Corporate Auditors, theBoard of Auditors, and accounting auditors.

Nomination and Remuneration Committee

Management Meeting

This committee deliberates and advises on nominationand dismissal of directors of Group companies andremuneration of directors and executive officers, as anadvisory body to the Board of Directors.
Its membership consists of three directors (of whom
two are outside directors).

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,
Corporate Auditors, division heads, and other members ofmanagement.

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Information Security Measures
Information security
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 thebasic policy for information security and declare that we will follow it.
1.
2.
3.
4.
5.
6.
7.
8.

We will establish a system to promote information security to manage it properly.
We will provide education necessary to ensure information security.
We will introduce proper management measures and work hard to prevent information security incidents andaccidents from occurring.
In cases where information security incidents or accidents occur, we will promptly investigate the cause andwork hard to minimize damage and prevent reoccurrence.
We will comply with laws and regulations, national guidelines, and other social norms relating to information
security.
All employees shall comply with rules and regulations relating to information security and we will take punitive
measures against those who violate them in accordance with our internal rules and regulations.
We will develop and implement internal rules and regulations in accordance with this basic policy.
We will maintain the activities mentioned above and strive to improve them continuously.

Business Continuity Planning (BCP) Initiatives
Business Continuity Plan (BCP)
Cosel launched its Business Continuity Plan (BCP) project in 2012 after the Great East Japan Earthquake
in March 2011, to establish a disaster response system and procedures for initial responses and resumption ofbusiness operations.
We have taken seismic retrofitting measures for production equipment, inspection equipment, and otherfacilities at Cosel Group plants and established a framework for backing up information systems and enabling
backbone systems to operate safely even in the event 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 welaunched Business Continuity Management (BCM) efforts for the entire supply chain. We ask suppliers(component manufacturers) to develop and continually implement BCM activities.

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Awareness and Action from a Global Perspective

Continual investment in human rights
Education to prevent harassment in the workplace
Cosel respects the fundamental human rights of all people and endeavors to create workplaces free of
discrimination based on 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 the person 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 raise awareness 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 notcertain behavior violates laws and regulations. These contact points provide consultation and 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 intend to continue strengthening our harassment reporting system by ensuring all employees areaware 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 that aims to maintain and improve working conditions, and regular labor-management conferences
are held to discuss labor-related matters and maintain healthy 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 theemployment of children lower than the minimum age for employment.

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

Employment of seniors
In line with amendments to the Act on Stabilization of Employment of Elderly Persons, Cosel has introduced asystem of reemployment for employees who have retired upon reaching mandatory retirement age.
We offer workplaces in which senior workers can continue to thrive while taking advantage of the skills andexpertise they have built up over the course of their careers, through continual employment under fair conditions
that reflect consideration for their previous work experience and the roles and responsibilities they are expected tofulfill after retirement.
Since FY 2014, we have provided career training for employees aged 51 and older, intended to motivate them todevelop their careers with consideration for mandatory retirement age and options to extend mandatory retirement
or for reemployment and to foster a mindset of proactively taking on challenges. This training program provides
information about the pension plan, the retirement benefits system, and the reemployment program, to encouragethem to raise their awareness of such matters before reaching retirement age.

Employee-friendly workplaces
Seeking to ensure employee-friendly workplaces, Cosel has introduced and promoted the following systems inaccordance with the Labor Standards Act and the Child Care and Family Care Leave Act.
Systems for Maternity Leave Before or After Childbirth and Childcare Leave
Our in-house rules clearly describe systems such as those for maternity leave before or after childbirth andchildcare leave. Childcare leave may be taken through the last day of the month after the month in which the childreaches the age of two years.
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 to vaccinations or health checkups.
Shortened working hours for childcare
We encourage employees caring forchildren through the sixth grade ofelementary school (through March 31 of
the child's sixth-grade year) to use thisprogram, which enables them to work
shortened working hours in accordancewith the provisions of the flextime
program.

Persons

Number of users of the Short-time Working System forChild Care

28

30
25

23

23

25

2016

2017

2018

27

2019

20
15
10
5
0

Subsidies for gynecological examinations

2020
(FY)

To promote early detection and raise awareness of women‘s health issues, Cosel pays a subsidy
equivalent to one-half of the costs of medical examinations for women aged 25 and older. Fourteen
employees used this system in FY 2020.

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ConsumerissuesWorkplaces Full of Vitality and Human-resource
Development

Creating safe, healthy workplaces
Industrial health and safety
In accordance with the Industrial Safety and Health Act, a Safety and Health Committee is established ateach Cosel plant in Japan to engage in activities related to health and safety. Committee members recruitedfrom 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.
Unfortunately, the number of industrial accidents increased in FY 2020. Safety and Health Committees willcontinue to strive toward the goal of zero on-the-job accidents, by returning to the fundamentals of health andsafety and reviewing and enhancing employee health and safety training, as well as implementing newmeasures such as checking on the state of establishment of measures to prevent reoccurrence of past on-thejob accidents.

The number of industrial accidents(Number)

10
8

7

8

7
6

5

6

4
4
2

2

1

2
0
2012

2013

2014

2015

2016

2017

2018

2019

2020
(FY)

Health management
Excessive workloads, such as extremely long working hours, may exacerbate health problems such ascerebrovascular and heart conditions.
At Cosel, employees who exceed the limit on overtime work (i.e., those whose average monthly overtime
hours for the last two months exceed 70 hours and those who work more than 100 hours of overtime in asingle month) are required to meet with an industrial physician, and those whose average monthly overtime
hours for the last two months exceed 45 hours may request to consult with an industrial physician.
Through these efforts, we strive to prevent health issues caused by work.

Stress checks
Cosel implements stress checks for the following purposes:a. 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.
b. This constitutes yet another effort to improve the workplace environment. Through ascertaining andimproving any issues in the workplace environment that could be causes of stress, we reduce thelikelihood of employees suffering from excessive stress.
Following amendment of the Industrial Safety and Health Act, workplaces with 50 or more employees havebeen required to conduct stress checks once a year since 2015.

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ConsumerissuesStabilization of employment
Labor-management dialogue
We holds regular labor-management conferences to share information with the labor union. These
conferences discuss working conditions and various systems including the personnel system, the state of job
attendance among subject workers, measures to ensure the health and welfare of subject workers, the status ofcomplaint processing and related efforts, and the details of reports submitted to the Director-General of theLabour 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 technicalpositions.
Cosel's hiring activities are focused ontechnical positions. Under conditions in which
it is difficult to find new employees fortechnical positions, we plan to incorporate
measures in response to student needs in the
future, for example by deepening theirunderstandings of the work of engineers
through internships.

Trends in numbers of employees and in new hires
for technical positions(Persons)(Persons)

600

Employees (nonconsolidated)

500

447

425

400

Engineering hires (development, production technology)

458

453

40

473

30
20

300

17

14

20

16

200

8

10

100
0

0
2017

2018

2019

2020

2021 (FY)

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 inaccordance with the terms and conditions of these programs.
◼ Encouraging employees to take paid leavesystematically
We encourage employees to take paid leave throughin-house rules that require them to take two days of
their annual paid leave each half-year.
Since the number of days of paid leave taken
decreased in FY 2020, we will continue to encourage
employees to take paid leave, to enable a soundbalance between work and family life, time for selfimprovement, and rejuvenation.
◼ Accumulated healthcare leave
Employees may take up to 20 days/year in leave for(i) personal injury or illness and (ii) short-termchildcare, family care, or nursing care.

Days of paid holiday taken yearly(Days)

18

16.6

16
14

13.2
12.3

12.1

12

11.5

11.5

2016

2017

10
2015

2018

2019

2020

(FY)

◼ Refreshment leave
Employees may take days refreshment leave for numbers of days corresponding to their years ofcontinuous service in milestone years. This leave is intended for mental and physical refreshment
purposes (including recognition of their service, health maintenance and improvement, and enrichment ofhome life).

Consideration for working hours
Flextime system
We employ a flextime system so that our employees can work efficiently while maintaining harmony between
their work and personal lives.
No-overtime day
Cosel has designated Wednesday of each week as no overtime work day, on which employees areencouraged to leave the workplace at the end of regular working hours to make time available for pursuing
hobbies, learning new things, and spending time with their families.
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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, based on our education philosophy and policies. Our management philosophy says ofhuman-resource development, “We develop human resources with the ability to conduct quality control,advanced technical skills, and good personalities that serve as an engine for business expansion based on our
educational policy.” We have established the following basic educational policies in line with this philosophy:
1.
2.
3.
4.
5.

Stimulation of workplaces
Enhancement of leadership
Learning required knowledge and techniques, and improving skills
Developing skills to operate and maintain an appropriate quality system
Recognizing the necessity of the environmental management system and developing the skills needed tooperate and maintain it

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

Education categories/System of education by level

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QC circle activities
We have continued QC circle activities since 1978.
All employees, including department and division general mangers, participate in QC circle activities as apart 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 matters such as business efficiency, products, services, andwork. This contributes to self-improvement and mutual awareness raising, thus improving the skills of all
members of the QC circle and helping to create brighter workplaces full of vitality.
Currently there are 84 QC circles active in the Company as a whole.
They meet during working hours, aiming for one hour-long meeting per
week, and compete with each other to demonstrate growth, as the circles
that have demonstrated outstanding results in block presentation
meetings present their results at the annual Companywide meeting.

The basic concept of QC circles

The Companywide meeting (photographed in April 2019; the 2020
meeting was held on Company premises due to COVID-19)

Kaizen proposal system
The kaizen proposal system has been implemented since 1978, with the goals of improving operations andbuilding brighter workplaces through employees utilizing their own creativity in various opportunities to propose
methods of improving current conditions.
Individual target numbers are set at the start of the fiscal year, and if they all achieve their targets then all
employees receive commemorative prizes (assorted snacks) in an annual event that employees look forward
to each year.
Commendations and monetary prizes are presented at the end of the month and the fiscal year, in
accordance with the system rules, and incentives are provided in fixed amounts regardless of the amount of
the effects of proposals implemented.
(JPY millions)

Cumulative value of results of proposal system (since
1999)

4,500

3,889

4,000
3,500
3,000
2,500
2,000
1,500
1,000
0

1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020

500
Commemorative prizes

(FY)

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ConsumerissuesCommunity
participationand progressIntellectual-property activities
The originality of the circuits and structures we employ is important to competitiveness in the markets forswitching power supplies and noise filters that are manufactured and sold by us. The level of suchtechnologies is directly linked to product performance differentiation. In order to continue our businessactivities and contribute to society, we make constant efforts to develop new technologies. Believing that it isimportant to secure competitive advantage by making patent application for, registering and protecting thetechnologies we have developed as intellectual properties, we actively apply for patents and other means ofsuch 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 theintents of IP laws and regulations, we make it a practice to search for relevant patents in the productdevelopment 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.
Furthermore, in recognition of the need to motivate engineers to develop advanced technologies andsecure intellectual property rights, we have established an award system for inventions, under which awards
are presented for securing and utilizing IP.

IP management system
The Intellectual Property Committee, composed mainly of development engineers, plays a central role inactivities to acquire and 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 ofmanagement efforts intended to maintain only the minimum necessary rights.

Number of patents
Trend in number of patents(Number)(FY)

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Environmental Protection
Environmental Policy

We have established an Environmental Policy that expresses our basic thinking on the environment andshare it across the organization. We strive to realize a sustainable society while demonstrating to society ourown approaches to environmental issues.

Environmental Policy
Environmental Principle
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

Itachikawa, Toyama

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Environmental Management System
Environmental Management Structure
Cosel maintains the following environmental management structure to carry out effective environmental
management.
President*1

Chief Environmental
Manager*2

Environmental
Committee

Environmental
auditors

OfficeDivision in charge ofenvironmental
management

Conducts
environmental audits

Department

Beautification and Recycling
Committee
Promotes and directs recycling
activities

Safety and HealthCommittee
Makes recommendations for
improvement regarding theIndustrial Safety and Health
Act

Division

Environmental management
organization

ISO 14001 certification*1 Chief Environmental Manager: Chairman ofEnvironmental Committee*2 Made up of the heads of major departments

Aiming to be a company trusted by stakeholders, we have earned ISO 14001 international environmental
management certification at our Head Office Factory and Tateyama Factory and are implementing continuous
improvement activities.
We began application of the FY 2015 version of ISO 14001 in October 2016. We successfully acquired
certification under the FY 2015 version following a transition audit in June 2017, and we have maintained thiscertification ever since.
Dates of acquisition:
FY 1996 version: December 17, 1999
FY 2004 version: October 21, 2005
FY 2015 version: September 1, 2017
Scope:• Design, development, manufacture, andservicing of regulated DC power
supplies (servicing limited to repair ofcollected units)• Design, development, manufacture(outsourcing), and servicing of noise
filters (servicing limited to repair ofcollected units)
Registered sites:• Head Office Factory, Tateyama Factory

ISO 14001 certificate

Certifying agency:• Japan Quality Assurance Organization

Internal Environmental Auditing

We conduct an internal environmental audit every year to verify matters such as conformity to ISO 14001
and the states of related implementation and performance. Each auditor reports audit results, including items
requiring improvement, to the Chief Environmental Manager. The Chief Environmental Manager checks ontheir details and notifies each department of its results, while also issuing instructions on improvements asnecessary.

Compliance with environmental laws and regulations
Each month, we collect information on legal and regulatory amendments and check for any changes to ourmanagement structure. We also conduct an annual legal and regulatory compliance evaluation.
Results of the compliance evaluation confirmed that once again there were no compliance violations in 2020.

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ConsumerissuesPromoting Efforts toward a Zero-carbon Society
Greenhouse-gas emissions reductions
We are deploying electricity-conservation activities to reduce electric power consumption, which accounts
for the bulk of our energy consumption. Since the establishment of the Company, all fluorescent lamps used in
our plants and offices have been equipped with pull switches, and we have continued thoroughly turning thelights off during breaks and in areas that are not in use. Today, we have developed a power monitoring system
to raise employees’ awareness of power consumption by publishing data on power usage by area on theintranet.
We also have set a target of reducing CO2 emissions by 50% by 2030 compared to 2013. We will continue
to promote further activities to conserve energy and prevent global warming, through means including
adoption of low-carbon power and reducing use of fossil fuels.

Trend in CO2 emissions (FY 2030: target)(t-CO2)

3,000
2,627

2,442

2,500
2,218

2,375

2,680
2,328

2,301

2,172

2,534

2,382

CO2 emissions
50% reduction

2,000
1,500

SCOPE1
1,221

1,000

SCOPE2SCOPE3(Sec.5)

500

(FY)

2030

2029

2028

2027

2026

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

0

* Through FY 2017: CO2 emissions from manufacturing/FY 2018 and later: Companywide CO2 emissions, including
sales facilities

Use of renewable energy
In 2002, we installed 60 kW solar panels on the roof of the new Head Office building, which generate
approximately 60,000 kWh 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. Following installation of additional units in 2007 and2011, the solar panels at the Tateyama Factory now generate approximately 200,000 kWh per year (reducing
CO2 emissions by approximately 100 t-CO2.) We also have installed internal power generation display
monitors so that employees can check the amount of power generated at any time.

Solar panel power generated/CO2 reductions
CO2 reductions
Power generated(Thousand
kWh)

250
200

221 210178(t-CO2)210 204
202 208 209 197
174
134 125 126
119

121
150

104 109

110

98

100
40
50

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

0

200
180
160
140
120
100
80
60
40
20
0

Tateyama Factory solar panels(FY)
Tateyama Factory power
generation display monitor

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ConsumerissuesEnvironmental Consideration in Product Development
Development of compact, high-efficiency power supplies
For new products, we conduct an environmental assessment at the development stage from theperspectives of resource conservation, energy conservation, recyclability, toxic substances, packaging,and packing materials. We also promote efforts to develop more environmentally friendly products.
In addition, we have established our own independent evaluation standards under which we certify
and register products that have a strong effects on environmental impact reduction as "Eco Model"
products. We encourage customers to use these "Eco Model" products by identifying them using thelogo at right.

High-efficiency AEA series of AC/DC power supplies
compatible with peak current (600 W)
Point 1
Helps make customers'
equipment more compact!

Resource
conservation

Energyconservation

Point 2High-efficiency design
Approx. 5%

Bulk reduced by 40%

AEA600F-48

Efficiency [%]* Compared to previous products

Previous model

improvement* Compared to previous
products
Power loss reduced by onehalf compared to previous
products

Output power Po [W]

Also compatible with peak current of three times the standard current

TUNS 1200F (1200 W) large-capacity, high-efficiency AC/DC power module
Point 1

Resource
conservation

Helping to reduce the size of customers'
high-capacity power equipment!

Point 2

Resource
Energyconservationconservation
Energy conservation

High-efficiency design
Comparison of efficiency (100 VAC)

Power density improved by 20% or morecompared to previous highest-capacity 700
W models* Installation footprint reduced byapproximately 30% compared to previous
highest-capacity 700 W models used inparallelApprox.

2% improvement* Compared to previous
product* Capable of reducing power loss by 30%
compared to 1200 W output from two TUNS700
models used in parallel(Contributes to energy conservation and morecompact size)

New product (TUNS1200)

Previous product (TUNS700)

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ConsumerissuesEnvironmentally friendly Eco products and their logo
In FY 2010, we developed a new internal environmental assessment system in order to promote thedevelopment of environmentally friendly products and actively provide customers with environmental information on
our products. Aiming to lessen 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 thatsatisfy the standards and are highly effective for lessening environmental impact, as "Eco Model" products.
To promote these "Eco Model" products, we identify them using the following logo.

"Eco Model" products (cumulative total)/"Eco Model"
products as a percentage of all products shipped(Model)
500

(%)
100

"Eco Model" products"Eco Model" products as a percentage of all products shipped
75.0

400
59.3
300
49.1

62.9

70.5

65.7

52.5
225

211
200

164
119

180

74.8

77.0

71.1

234

252

190

265

80

60

40

139

100

20

0
2011

2012

2013

2014

2015

2016

2017

2018

2019

0
2020 (FY)

Cosel's "Eco Model" logo
We will continue actively expanding our lineup of "Eco Model" products to realize, together withour customers, a low-carbon, recycling-oriented society that makes less of an impact on theenvironment.

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ConsumerissuesLessening 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(space saving)

25% reduction compared to existing
equipment
Comparison to conventional tank (type B)

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
soldering equipment[Conventional] Type-B
soldering equipment[In-house Development]
Soldering equipment

Units of soldering equipment (facilities) adopted/CO 2 reductions(Units)(t-CO2)

Units adopted (cumulative total)
導入台数(累計)

CO
CO2削減量2 reductions

15

16

100

14
12

10

57

10
8

60

49

6
37

6

40

25

3

4
2

80

11

20

1
8
1

0
2015

0
2016

2017

2018

34

2019

2020

(FY)

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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 the prevention of illegal international traffic in toxic and dangerous products,” was adopted at the UN
Conference on Environment and Development (UNCED) in 1992, stricter regulations have been adopted on toxic
substances both in Japan and worldwide. These include the EU REACH framework and the EU RoHS Directive.
Manufacturers face demands to produce more environmentally friendly products.
At Cosel, we have issued Green Procurement Standards to specify “prohibited substances” and “controlled
substances” for products and plant activities. We apply these Green Procurement Standards both inside theorganization and as conditions of transactions 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 make surethat there are no omissions. Then, we compare data on chemicals harmful to the environment with the resultsof 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, employing a frequency
based on the applicable risk rank, to check whether components delivered contain any chemicals harmful to theenvironment.

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 throughexchange of data from suppliers on content of chemicals harmful to the environment and our own green
procurement standards.
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 and Tateyama Factory 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 of internal training by departments. Trainees are tested to check their level of understanding.
This helps to deepen their understandings of the objectives and importance of managing chemicals harmful to theenvironment as well as the details of Cosel's initiatives.

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Environment

ConsumerissuesCommunity
participationand progressCompliance with the RoHS Directive and REACH regulations
The RoHS Directive came into effect on July 1, 2006 (*1). It restricts the use of six substances that negatively
impact the human body 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 theirtolerated maximum concentration values remain the same in the revised Directive (2011/65/EU: RoHS2), thenumber 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 inJune 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 July22, 2019.
We are responding through means that include investigating the content of the four phthalates contained in our
products and checking on production processes.
In May 2020, we fully discontinued our eutectic solder products.
The REACH regulations also require all companies manufacturing or importing chemical substances inquantities of one ton or more per year in the European Union to register information on those substances in theEuropean Chemicals Agency (ECHA) database.
Failure to register means the substance may no longer be manufactured or imported 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 published in certificates of non-use of RoHS substances and provided on our website as data foruse with the chemSHERPA tool for communication of information on environmentally harmful chemical
substances, developed by the Ministry of Economy, Trade and Industry and operated by the Joint Article
Management Promotion-consortium (JAMP).
*1 RoHS Directive
An EU directive that restricts the use of certain hazardous materials in electrical and electronicequipment.
The use of six substances (mercury, cadmium, lead, hexavalent chromium, polybrominated biphenyls[PBBs], and polybrominated 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 the letter “R” in the upper right of the label.)*3 4 phthalates
Bis(2-ethylhexyl) phthalate (DEHP)
Butyl benzyl phthalate (BBP)
Dibutyl phthalate (DBP)
Diisobutyl phthalate (DIBP)

Pb
Lead
PBB
Polybrominated biphenyls

Hg
Mercury

DEHP DBP

CertainHazardous
Substances
PBDE
Polybrominateddiphenyl ethers

DIBP

BBP
Cd
Cadmium

4 phthalates

After July 22,2019

Cr6+
Hexavalent chromium

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Cosel Co., Ltd. Corporate Social Responsibility Report 2021

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Affairs

Community
involvement anddevelopment

Promoting a recycling-oriented society
Promoting the "Three R's" (reduction, reuse, recycling)
Cosel promotes the "Three R's" based on the perspectives of lessening environmental impact and effectible
use of resources.
We will continue thorough efforts to reduce, recycle, and segregate wastes in our business activities in the
future as well.

Trends in wastes and recycling rates(t)

廃棄物
Wastes

300

95.7

250
200

Recycling,reuse
ﾘｻｲｸﾙ・ﾘﾕｰｽ

95.3
171

95.7

95.3

223

200

94.5

256

97.0

94.1

95.2

161

150
100

231

187

160

151

11

10
2012

210

235

216

240

100

274

255

252

(%)

リサイクル率Recycling rate

248

221

93.9 95

92.1
194

234

90

85

50
0

2011

13
2013

13
2014

17

15

15

26

27

23

2015

2016

2017

2018

2019

2020
(FY)

80

Examples of initiatives◼ Reduction
Previously, we had used bubble wrap bags to sendcertain components to our OEM manufacturers. Afterunpacking, these were disposed of as industrial waste.
We were able to reduce the amount of waste by adopting
a new packing method using reusable returnablecontainers. We also improved the reusability of thesecontainers through means including use of rubber bands
to keep their lids in place.

Bubble wrap bag◼ ReuseChip components are delivered wound on plastic reels like tape. Previously,
we had disposed of the used reels as stable industrial waste.
But since the reels were neither deformed nor soiled after use, we asked
the suppliers to collect and reuse them.

◼ Recycling
Defective units that could not be shipped as products and substrate scraps cut off in the production process
had been disposed of as industrial waste. Now, we separate them into metals, plastics, and other materials
before disposal, so that they can be used to cast ingots or as auxiliary combustion materials in furnaces.
We regularly check the status of waste segregation and strive to raise employees’ awareness.

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ConsumerissuesEnvironmental indicators
FY 2020 environmental accounting
In FY 2020, we invested approximately 15.5 million yen as environmental protection costs.
We also recorded approximately 18.5 million yen as economic benefits of environmental protection, throughgains on sale of wastes as valuable materials, reduced purchase of electric power through use of solar power,savings in electricity 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.
Scope: Head Office Factory, Tateyama Factory, R&D Center
Unit: JPY millions

Environmental protection costs
Category(1) Cost within business area

Description

Cost

Investment

Environmental conservation costs to reduce the environmental burden generated from production/service
activities within business activities.
i. Pollution prevention cost
0ii. Global environment conservation cost
0iii. Resource circulation cost
0

0

0.0
17.8
8.1
6.4

(3) Management cost

0

18.1

(4) R&D cost

0

0.0

0

50.4

(2) Upstream/downstream cost

(Cost) Promotion of green procurement
Control of environmentally-unfriendly
chemicals

Cost to reduce the environmental
burden generated upstream or
downstream in association withproduction/service activities.

(Cost) Maintenance of environmental
management systems
Environmental conservation costs in 1) Monitoring and measurement of data fromequipment and facilities that generate an
management activities
environmental burden.
2) Response to the survey of content ofenvironmentally-unfriendly chemicals
Environmental conservation costs in
R&D activities

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

Item

Effect (volume)(Reduction of power usage through solar power
generation and energy saving efforts)

87.3（ｔ-CO2)

CO2 reduction

Item

15,486

Gain on sale of valuables
Power consumption amount by solar
power generation
Power consumption reduce by inhousedeveloped solder tankAmount of waste used effectively

241.0(t)(Amount of recycled, reused, andvaluable resources)

Effect (amount)

2,845
488

Total
*

18,819Benefits recorded do not include economic benefits based on assumptions, such as risk avoidance (i.e.,
imputed benefits).

(JPY millions)

120.0

112.1

Investment
投資

Economic benefits ofenvironmental protection

Cost
費用

環境保全経済効果

100.0
80.0

72.0

92.9

85.2

75.0
70.8

67.9

66.5
58.7

60.0

48.1
36.9

40.0

50.4

33.7
28.2

20.0

17.4
8.5

2.6

12.5

11.8

10.0
0.0

0.0

8.2

12.2

18.8

15.6

15.5
14.1

18.5

0.0

0.0
2011

2012

2013

2014

2015

2016

2017

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

38

2018

2019

2020
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FY 2020 environmental impact
We investigate and ascertain the environmental impact of our business activities annually, for use inmanagement activities.
Period surveyed: December 2019 – November 2020
Figures in parentheses indicate year-on-year comparisons.

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Achievement of environmental targets and goals
The state of achievement of environmental targets and goals in FY 2020 is shown on the table below.
Most meetings were not held during this period due to delays resulting from the impact of COVID-19.
Currently, we are adjusting specific items and numerical figures for FY 2021 among individual divisions and theoffice. They will be confirmed by the Environmental Committee after their establishment is complete.

Achievement of environmental targets
and goals in FY 2020

Assessments: 〇 achieved, ×: unachieved

Implementing environmental education
The following environmental education is conducted inside the organization, as education necessary to ourenvironmental management activities.
1) General environmental education: All employees of the Head Office and Tateyama Factory2) Education on chemicals harmful to the environment: All employees and temporary employees involved incontinual work at the Head Office and Tateyama Factory as well as employees of subcontractors involved in
production, repair, and logistics are educated on the purposes and importance of control of chemical
substances and on our initiatives3) Specialized environmental education: Employees involved in related work
Education for new employees is implemented as part of the training program conducted after joining the Company.
List of courses of special environmental education
No.

1

2

3

4

5

6

Work

Description of education

TargetWorkers engaging in
Method for solder scrap disposal
soldering work
Workers handling organic
Soldering work
Inspection of soldering equipment
solvent
Workers engaging in the
Emergency measures
relevant work
Method of storage, use, and disposal of Workers engaging in theWork relating to disposal of waste
organic solvent
relevant work
solution of organic solvent
Workers engaging in the
Emergency measures
relevant work
Management of industrial waste
Workers engaging in the
Office work relating to industrial waste
management slips (manifests)
relevant work
Confirmation of changes in
How to confirm changes inenvironmental laws and regulations
Workers engaging in theenvironmental laws and regulations
and evaluation of compliance with
relevant workand evaluate compliance with them
them
Inspection when supervising nitrogen
Workers engaging in thegas charging
relevant work
Supervision of nitrogen gas charging
Workers engaging in the
Daily inspection
relevant work
Management of chemicals andManagement method based on internal Workers engaging in thehazardous substances
rules
relevant work40

Cosel Co., Ltd. Corporate Social Responsibility Report 2021

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involvement anddevelopment

Consumer
Affairs

Encouraging employees to take the Eco Test
The Eco Test (Certification Test for Environmental Specialists) is a certification Exam conducted by the Tokyo
Chamber of Commerce and Industry, intended to train human resources who possess the wide range of knowledge
needed to take the initiative in tackling environmental problems in society and to promote a sustainable society witha sound balance among environmental and economic concerns.
Cosel employees have been taking the Eco Test since the sixth test in FY 2009. Currently, 139 employees (26%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
Number passing(Persons)（%）

Percentage passing

200

30
23

150
17
100

50

14

14

11
52

20

20

98

104

124

25

26

135

139

20

82
64

65

2013

2014

10

0

0
2012

2015

2016

2017

2018

2019

2020
(FY)

Earning environmental qualifications
Cosel strives to increase the numbers of personnel who have earned official environmental qualifications, byencouraging employees to take on the challenge of earning them.
Current numbers of employees who have earned official environmental qualifications are shown below.

Employees who have earned
environmental qualifications
Number of Cerdential Holders

No.

Name of Credentianls

1

Hazardous materials security superintende22Class A hazardous materials engineer

143Class B hazardous materials engineer

74Operations chief of lead

3

5

Operations chief of organic solvent

8

6

Special controlled industrial waste Manager

6

7Class I health officer

8

8

Safty officer

49Fire prevention manager

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Fair and Equitable Transactions
Promoting CSR procurement
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, regulations, andsocial norms.
To develop outstanding products that will satisfy customers around the world through our businesses, it isessential to manage the quality of the components and materials we purchase, delivery times, and costs, andto take the environment into consideration.
To this end, we strive to deepen mutual understanding with suppliers in daily business activities andprovide them regularly with information concerning quality, delivery time, costs, our management policies, andour technology strategies.
We believe it is important for us to improve our partnerships with suppliers by maintaining andstrengthening 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 also our suppliers, we strive to ensure that suppliers understand our basic
approach on procurement activities.
When our website was relaunched in September 2015, we posted a “Request to Suppliers” on the website to
notify them of our expectations concerning the environment, human rights, labor practices, and compliance:
1.
2.
3.
4.
5.
6.
7.

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
Establishment of a relationship of trust with consumers
Social contribution to local residents

Initiatives to address conflict minerals
There are concerns that mineral resources mined in the Democratic Republic of the Congo and nineneighboring 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 file reports 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 conflictminerals, to promote responsible procurement of minerals. We explain the purpose and necessity ofinvestigation 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 the information using the CMRT.

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Supplier evaluation
When commencing business with a new supplier, we conduct supplier evaluation from perspectives that
include those of financial standing, capacity to supply components, and quality and environmental management
systems. From an environmental 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
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.Financial status
2.Capacity to supply components
3.Quality management system
4.Environmental substance control system

Pass
Start business
Pass

Regularevaluation

Order placement

1.Quality
2.Delivery time
3.Cooperation in cost reduction
4.Environmental risk

FailedBusiness suspenstion

Green procurement
In order to deliver environmentally friendly products to customers, it is vital to ascertain the chemical
content of not only our own products but also those of suppliers and to disclose and communicate suchinformation smoothly. For this purposes, we are striving to establish a system covering the entire supply chain.
Cosel established its Green Procurement Standards in FY 2004 and has used them as conditions oftransactions with suppliers since then. We also conduct regular review for compliance with laws andregulations and promote green-procurement efforts.

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participationand progress

ConsumerissuesBuilding Improved Relations of Trust with Stakeholders
Continual Improvements to the Quality Assurance Structure
Quality Policy
Based on the Quality Policy, Cosel considers it to be our mission to deliver to customers products andservices that can be used in safety and with peace of mind. Each and every employee works hard from day to
day keeping in mind the fact that every single business activity is connected to customer satisfaction. These
efforts are being made in all processes, from product planning and development through design, manufacturing,shipment, and maintenance services.

Quality Policy
Creating products and services that makecustomers feel reassured

Quality management system
The chart below depicts the essential processes of our quality management system and theirflows, interrelations, and related organizations.
Quality management framework
The Company's standing
Internal/external topics Stakeholder needs

Quality Management System
Demonstration of management processes/leadership at the
management level
Quality Policy

Performance
evaluation/improvement

Planning

Quality target planning

Control of use ofmanagement
resources

・Management review
・Corrective measures

Receiptof orders/contracts

Design/developmen

Purchasing

Product
ion

Inspecti
onServiceComplaints

Producti
onpreparati

Product
storage/shipping

Support process

Key process

Education andtraining
Knowledge
management

Information
infrastructure

Equipment
management

Monitoring/measurement

44

Inspection
devicemanagement

Process

Customersatisfaction

Document andrecordmanagement

Customers

Product monitoringand measurement(assessment of Quality Management System)

Product realization process

Supplying products and services, customer satisfaction

・Performance/customer-satisfaction
evaluation and analysis
・Internal quality auditing

Product

Customers

Customer requirements for products and services

Risks andopportunities

Suppliers

Goal management process

Input/output
Commitment

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ISO 9001 certification
We were the first company in Toyama Prefecture to earn ISO 9001 international certification throughestablishing a quality management system, and we continue to implement thorough quality management.
We began application of the FY 2015 version of ISO 9001 in October 2016. We successfully acquired
certification under the FY 2015 version following a transition audit in June 2017, and we have maintained thiscertification ever since.
We will continue striving to improve quality further and increase customer satisfaction.

ISO 9001 certificate

Dates of acquisition:• FY 1987 version: June 21, 1993 (first in Toyama Prefecture)• FY 2000 version: March 20, 2003
• FY 2008 version: July 23, 2010
• FY 2015 version: July 7, 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:• Cosel Co., Ltd.
Related sites• Head Office Factory, Tateyama Factory, Safety Standard Office, domestic sales facilities
Certifying agency• Japan Quality Assurance Organization

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Quality assurance system
To reliably implement and maintain various processes, we have established a quality management system
under which General Manager of the TQM Promotion Office serves as the quality management supervisor.
We have established the quality assurance system by defining in the Quality Manual basic requirements inprocesses from the product planning and development stage through quality assessment, mass production,
shipment, and service, and documenting the rules for each step in procedures and other manuals, in order toprovide products that meet customer needs in a more timely manner.
Cosel’s quality assurance structure is shown below.
We also hold regular meetings among the persons responsible in development, production, and quality
control divisions, with the quality management supervisor playing a central role. These meetings strive to
reduce quality issues through studying quality-related topics and developing solutions for quality issues
affecting multiple divisions.

Quality assurance structure diagram
Step

CustomerPresident

User needs
Management policies

Sales department
Collection of market
information

Development
department

Collection of technicalinformation

Production
department

Quality management
dept.

TQM Promotion
OfficeMaterials dept.

Planning

New-product planning

ND1 (technological development meeting)

Basic design
ND2 (new-product planning meeting)

Development, design

Detailed design
DR 1 (Design Review 1)
Prototyping
Trial production andevaluation
Mass-production
designProcess design
Tool and die design

Production preparations meeting 1

DR 2 (Design Review 2)

Process design
Tool and die design

Production preparations meeting 2

Quality evaluation

Trial mass production
Redesign
Evaluation
Redesign, production
Quality
Evaluation
Massproduction
Approval
Order placement

Order receipt

Redesign, production

Production planning
Parts and materials
procurement

Production

Purchased
products
Inspection
Assembly
Testing, finishing

Shipped products
Inspection

Quality improvements

Use

DeliveryWarehousing
Internal quality auditing
Quality Assurance Committee
QC diagnostics

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ConsumerissuesResponding to quality issues
Our technical staff respond promptly and accurately to any product failures that may occur. We provide
maintenance services that include failure analysis, repair, and overhaul in response to any defects or failuresoccurring within processes or in the field.
In the event of a defect, we ask the customer for information on subjects such as the situation andenvironment where the product was used. Through accumulating such information internally, we strive toinvestigate the cause and resolve the defect as quickly as possible, with reference to past cases.
In addition, we analyze the defects in products returned from the market and provide feedback to productdevelopment and the production site. Then, we run through the plan-do-check-act (PDCA) cycle, intended tomake improvements from the customer's perspective. In this way, we strive to improve product quality andprovide service that will satisfy customers.

Structure of responses to quality issues, androles of each division
Development dept. inchargeInvestigation, instructing
countermeasures

Countermeasures

Response

Complaint information
Customer
Return of productsubject to complaint
ReportingSales department
Information collection

Request for
countermeasures
Complaint
information

Complaint information Development dept. service
staff
Response
Return of productsubject to complaint

Investigation, analysis

Response

Investigation,
instructing
countermeasures

Quality management
dept.
Verification of efficacyof responses andcountermeasures

Request for
countermeasures

Production dept. inchargeInvestigation, instructing
countermeasures

Countermeasures

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Enhancement of the Customer Support Structure
Increasing customer loyalty by creating added value

Cosel provides technical support service through a toll-free telephone number and contact form on thewebsite as well as an online technical support contact point. Our dedicated support team strives to respond toinquiries from customers quickly and accurately.
We also provide a wide range of support services such as visits to customers and onsite evaluation of EMI,
EMS, and other products 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, to help improve the quality of products and services in the future.
We also strive to improve products and services and create added value by collecting information oncomplaints, 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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ConsumerissuesDisclosure to Shareholders and Investor Relations
Returns to shareholders
Policies on dividends
We regard distribution of earnings as an important management policy. We pay dividends linked tobusiness 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 purposes such as new product development, investment in researchand development and production facilities, acquisition of treasury stock, and enhancement of our financial
standing to contribute to future business expansion.
Dividend trends
Trends in dividends per share and thepayout ratio are shown at right.

Dividends per share and payout ratio
Full year
End of 2Q
Dividend payout ratio

(JPY)
50
40

36.9%

30
20

35.3%

228.9%

42.1%

32
26

25
20
16

10

17

10

8

0
2017/5

2018/5

2019/52020/5

250%
240%
230%
220%
210%
200%
190%
180%
170%
150%
140%
54.7% 160%
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%
17
-300%
-310%
-320%
-330%
-340%
-350%
-360%
-370%
-380%
-390%
-400%
10
-410%
-420%
-430%
-440%
-450%
-460%
-470%
-480%
-490%
-500%
2021/5Disclosure of IR information
We strive not only to comply with provisions such as those of laws and regulations concerning securities
trading and the Timely Disclosure Rules established by the Tokyo Stock Exchange but also to disclose
information proactively and appropriately, to ensure transparency and accountability to stakeholders.
We issue press releases and post the latest information and various disclosure documents on our website as
appropriate.

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

49

Cosel Co., Ltd. Corporate Social Responsibility Report 2021

Governance

Human rights

Labor practices

Fair businesspractices

Environment

ConsumerissuesCommunity
participationand progress

Community Involvement and Community Development
Taking on the challenges of technological innovation tocreate new value
Industry-academy joint research and cooperation with various industry
associations in technical fields
Cosel is advancing joint research with academic institutions including Toyama Prefectural University andUniversity of Toyama, communicating to students the spirit of manufacturing as well as the latest science andtechnology through establishing factor technologies in areas such as solder strength analysis.
We also participate proactively in the activities of various industries and associations both inside andoutside Toyama Prefecture, taking on a wide range of issues and challenges in cooperation with relatedcompanies.
[Joint research]• Society for Promotion of Exchange, Center for Joint Research, University of Toyama• Society for Research Collaboration, Toyama Prefectural University[Industry associations]• Japan Electronics and Information Technology Industries •Association (JEITA)•• The 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
•
•
•
•
•
•
•
•

Society for Technology Promotion, Toyama
National College of Technology
Toyama Society for the Promotion ofTechnical Education
Toyama Prefecture Middle School
Manufacturing Education Promotion
Conference
QC Circle Toyama Section Hokuriku Branch

Toyama Association of Corporate Executives
The Toyama Chamber of Commerce and Industry
Toyama Employer’s Association
Toyama Prefectural Machinery and Electronic Industries Association
Society for Young Engineer Development, Toyama New Industry Organization
Toyama Technology Exchange Club
Toyama IoT Acceleration Consortium

Internships
Internships provide opportunities for students to raise awareness by thinking about and experiencing
themselves the working world, life in a company, and what it means to be a professional before they begin theircareers, through work experience in the actual workplace.
Cosel offers internships in operations related to development or production technology, providing
opportunities to experience work related to design of power supplies and to learn about the fundamentals 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 Toyama Prefectural Machinery and Electronic Industries Association 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.
This activity consists of a program to dispatch instructors, company tours, and support for teaching materials
and other resources. We actively support this activity based on our belief that lectures on subjects such as theenjoyment and fascination of manufacturing and how what middle-school students learn is put to use in society,as well as opportunities to tour actual business workplaces, will help students in choosing their future career
paths.

50

Cosel Co., Ltd. Corporate Social Responsibility Report 2021

Governance

Human rights

Labor practices

Environment

Fair businesspractices

ConsumerissuesCommunity
participationand progressContinual investment in society
Blood drives
Amid Japan's falling birth rate and the aging of its society, thenumber 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 a nationwide blood shortage.
We conduct employee blood drives every year and cooperate in
the activities of the Japanese Red Cross Society Blood Center.

Fund raising
In the past, Cosel has donated both the proceeds from an annual company bazaar and money collectedfrom employees to the Community Chest of Toyama. However, since the bazaar has been canceled to help
stop the spread of COVID-19, recently we have 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 growthof young people.

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
elementary-school athletes selected from more than 100 schools in Toyama Prefecture to compete in five
events: the 100-meter dash, the shot put, the long jump, zigzag dribbling, and swimming.
While the event was cancelled in 2020 to help stop the spread of COVID-19, it was held in April 2021 while
implementing various measures to prevent infection, welcoming 216 participating students from 90 schools in
the prefecture.
Due to rain on the day of the tournament, only three events were held (the long jump, zigzag dribbling, andswimming). The students competed vigorously in spite of the rain.
Fourteen Cosel staff members volunteered to guide the students during the tournament.

51

Cosel Co., Ltd. Corporate Social Responsibility Report 2021

“Grasping needs from a customer’s perspective anddeveloping high-value added products and services”

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