GS Yuasa Corporation

CSR Activities in 2017
Web version

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President's Message
President's Message"Into the future, GS Yuasa aims to become an energy devicecompany by developing leading-edge technologies focused on
quality, while maintaining an untiring commitment todependability and safety."
GS Yuasa is able to celebrate the 100th anniversary thanks to all
stakeholders, both past and present. On behalf of the Company, I would
like to express my sincere appreciation to our stakeholders for their
enthusiastic support over so many years.
Since beginning as a dedicated manufacturer of industrial-use leadacid batteries, GS Yuasa helped establish batteries as essential devices asbusiness evolved over 100 years. Formed through the merger of two
companies, Japan Storage Battery Co., Ltd., and Yuasa Corporation, GS
Yuasa has been transforming into an energy device company, expandedbusiness beyond batteries to power supplies and lighting as well as
specialty equipment and other electrical equipment.
Amid this transformation, maintaining a commitment to dependability
and safety is essential for the GS Yuasa brand. Both of the Company's
founders were dedicated to contributing to society by developing highquality products with an inventor's passion and to pioneering new
businesses ahead of their times with the spirit of challenge. These ideals have been passed down to all
employees of the GS Yuasa Group─right up to today. I am certain that this corporate culture is vital fordelivering the highest quality to customers as their company of choice.
Looking ahead, we will continue exploring ways of using energy e ectively while maintaining our commitment
to quality, as well as striving to develop the battery businesses as an energy device company that bene ts theenvironment and people around the world. We regard that as our key mission over the next 100 years. At thesame time, we will do our upmost to realize the newly established GS Yuasa CSR Policy and Code of Conduct sothat we can further contribute to making communities more sustainable through the Group's business activities.
We sincerely appreciate the understanding of all stakeholders and their continuing support.
Osamu Murao
President
GS Yuasa Corporation-2-

President's Message

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

CSR Policy and Code of Conduct
CSR Policy and Code of Conduct
The GS Yuasa CSR Policy and Code of Conduct formulated in May 2017 are based on the President´s Policy andhave become the foundation of the Group´s CSR. In the GS Yuasa Group, all employees understand that CSR
activities are business activities and we encourage everyone to take part based on our CSR Policy and Code of
Conduct in order to ensure the sustainable development of society and business.

GS YUASA CSR Policy
Besides legal compliance, we respect international norms, guidelines, and initiatives related to social
responsibility, work on sustainable development of our business through developing energy storage
technologies, and contribute to people, society, and global environment.

1. Developing fair, transparent, and sound business, and anti- corruption

GS YUASA conducts a transparent business policy which aims to earn the trust of customers, business
partners, shareholders, and of local communities as a top priority. And to adhere to laws andregulations of each country and region. Furthermore, we address to prevent any kind of corruption,
will not tolerate any illegal political contribution, bribery of public o cials, and will not haverelationships with personnel or organizations of organised crime.

2. Respect for human rights

GS YUASA will respect all human rights and labor rights, and will not tolerate any forced labor or childlabor. Diversity will be respected, without any discrimination being tolerated.

3. Conservation and improvement of adequate working environment

GS YUASA will provide safe and comfortable working environments for employees. Proper
management will be provided in order to promote mid to long-term development of humanresources.

4. Ful llment of our responsibilities to provide safe and secure products andservices

GS YUASA ensures the safety and quality of products/services to the end of their lifecycle throughout
manufacturing. Furthermore, GS YUASA honest provides clear safety information for all
products/services.
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CSR Policy and Code of Conduct

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

5. Global environmental conservation

GS YUASA addresses to prevent pollution , and to mitigate climate change, and to establish a soundmaterial-cycle society through using sustainable resources.

6. Building better relationships with local communities

GS YUASA will contribute to sound and sustainable development of local communities throughbuilding better relationships with their local communities.

7. Ensuring social responsibility within our supply chain

GS YUASA will promote actions to ensure social responsibility within our supply chain.

GS YUASA CSR Code of conduct
1. Developing fair,transparent, and sound business, and anti-corruption

1-1 Compliance(1) We respect international and regional norms, guidelines, and initiatives, and also strictly comply
with the laws and regulations in each country and region in which we operate.
(2) As a member of the international community, we will comply with the export control laws andregulations of each country in order to maintain international peace and security, and we will notexport in a manner to spread materials which could lead to the proliferation of weapons of mass
destruction.
1-2 Elimination of mixing up o cial business with personal a airs
We will never conduct to bring damage to the company, through misappropriation of corporate
assets and corporate expenses only for one's personal ends or else with misfeasance allowing one's
personal advantage.
1-3 Fair, Transparent and free competition and trade(1) We will not engage horizontal agreements (cartel) through meeting and participation to tradeassociation's activities, i.e. price and quantity xing as well as exclusivity in distribution of products
and services. Upon receipt of such proposal, we decline clearly without leaving no doubt to be
misunderstood. To this extent, we will never act in collusion with other contractors, nor to x thewinning bidder and/or contract price.
(2) We never act in abuse of dominant position, to take advantage of subcontractors, i.e.,
withholding the amount of subcontract payments without reasons attributable to thesubcontractor or failing to make payment after the lapse of the due date of payment, or obtaining
undue or improper advantage. Also, upon issuing our order to subcontractors, we will retain thewritten o er on paper or electronic record.
(3) We will not obtain or use industrial information or data of other companies or rms in an
unauthorized way.
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CSR Policy and Code of Conduct

CSR Activities of GS Yuasa Corporation in 2017 (Web version)(4) We will not leave product labelling or service information inexact or unclear in a manner tocause customers misunderstanding.
1-4 Management of con dential information(1) We observe the protection of con dential information and its appropriate use; then, at the eventof disclosure to the third parties, we will disclose only after concluding con dentiality agreement.
(2) We will observe the protection and appropriate use of con dential information received fromour business partners and co-researchers or co-developers; We will not disclose to the third parties
without the prior consent of the disclosing party.
(3) Before assembling personal information, we will at rst notify the purpose of use, and thencollect in an appropriate way. The purpose of using personal information is to be limited andspeci ed.
(4) We will conserve personal information data in safety and control its use, then monitor in asuitable way the employees and subcontractors using/handling these data.
(5) We always respect the individual privacy, so need to pay the most attention in handling theircon dential information, learned from one's business relations or in the course of business, and atlast, not to inform or leak to anyone without authority.
(6) We will not commit so-called ""insider trading"", act of making max pro t in stock and security
exchanges transaction thanks to privileged acknowledgement of internal information, within ourgroup and received from business partners.
1-5 Respect for intellectual property(1) We will assess su ciently third parties' patents, industrial designs, trademarks and othercommercial rights, prior to development, production, commercialization and delivery of, or
providing our products and services.
(2) We will not use intellectual property of a third party without authorization of patent holder, orunless we have a justi able reason.
(3) We will not unlawfully duplicate any software and other copyrighted works, i.e., Literature andimages, Journalistic articles, Paintings, Music.
1-6 Separation from organized crime(1) We will not provide any form of bene t in excess of the normal shareholder's right to any person
or company associated with organized crime.
(2) We will cut o business or any other relationships with individuals and organizations having an
indication of support for organised crime.
1-7 Transparency of information disclosure
We will disclose, within a speci c time limit and with appropriate method, any information
required by laws and regulations of each country and region in which we operate, as well as speci c
information to maintain good communication with other stakeholders and local communities.
1-8 Legal compliance for political funds control-5-

CSR Policy and Code of Conduct

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

We will not contribute for political funds, requesting some business advantage in return, such as
acquisition or maintenance of trading, or access to nondisclosure information. Also, we will comply
with the conditions stipulated by the laws and regulations of each country and region in which we
operate before making political contributions.
1-9 Prohibition to o er entertainment or gifts to public employee
We will not o er money, entertainment, gifts, or other economic bene ts, nor provide advantages
to public employees or equivalent persons perceived as a con ict of interest.
1-10 Sound relationship with business partners
We will endeavor to maintain sound business relationships with our business partners; therefore
we will not receive money, gift or entertainment o ered from business partners exceeding
commonly accepted limits.

2. Respect for human rights

2-1 Prohibition of discrimination and respect for diversity
We will respect and honor diversity and will not discriminate anyone for any reason, including race,
gender, sexual identity, nationality, national origin, disability, and religious or political opinions.
2-2 Respect for individual personality
We will not condone the removal of human rights of any individual person, including sexual
harassment and power harassment, nor the reduction of personal dignity of others.
2-3 Respect for labor rights
We will respect labor rights including freedom of association and collective bargaining rights, inaccordance with the laws of each country and region in which we operate.
2-4 Prohibition of forced labor and child labor
We will neither force labor, nor employ children under the legal working age . Furthermore, we will
not tolerate forced labor or child labor in any way.
2-5 Avoidance of complicity in human rights abuse
Directly or indirectly, we will not be complicit in human rights abuse.

3. Conservation and improvement of adequate working environment

3-1 Conservation and improvement of safety and health in working environments
We will maintain and improve working environments from the perspective of health and safety inaccordance with laws and regulations of each country or region in which we operate."
3-2 Ensuring appropriate working hours, securing minimum wages and prohibiting unreasonablewage reduction(1) We will provide management in order to maintain appropriate working hours and will makeevery e ort to take measures to prevent mental and physical health disorders caused by overwork.
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CSR Policy and Code of Conduct

CSR Activities of GS Yuasa Corporation in 2017 (Web version)(2) We will respect minimum wages in accordance with laws and regulations of each country or
region in which we operate and will not conduct unreasonable wage reduction.
3-3 Mid to long-term human resources development and appropriate ability assessment
We will make every e ort to proactively support career development in accordance with each
employee's abilities and aptitudes. Performance of each employee will be assessed adequately.
3-4 Respect for individual work-life balance
We will make every e ort to respect diverse working styles, so as to ensure work-life balance and tomaintain physical and mental health of employees.
3-5 O er of equal employment and working opportunities
We will o er equal opportunities in recruitment and promotion, as well as forbit any arbitrary or
discriminatory treatments.

4. Ful llment of responsibilities to provide safe and secure products andservices.
4-1 Focus on safety and quality
We will address to prioritize safety and quality throughout our business. For this purpose, we will
strive to provide safe products and services to maintain and improve satis ed quality forcustomers, through all our business activities which are research & development, design,
procurement, production, sales and after-sales service.
4-2 Making Safety Information accessible
We clarify Safety Information on our products and services. Safety Information includes Instruction
manuals supplied with products, Labelling of products, Web portal communication, etc. We will
make Safety Information accessible for customers as well as for any other stakeholders involved incommercialization of our products and services.
4-3 Solutions in case of Product accidents
We address to prevent spin-o e ects on the extent of damages of accidents as well as swiftly reactin case a serious accident occurs on our product or service. And also, we investigate and collate therelative facts, research of causalities, make a necessary report on these inside and outside ourcompany group, and then we disclose information so as to take preventive steps.

5. Global environmental conservation
5-1 Promoting environmental protection(1) We will evaluate environmental impact resulting from our business activities, products andservices; strive for environmental protection (including prevention of pollution) through energy
saving, greenhouse gas reduction, e cient use of raw materials and water as well as waste
reduction and recycling; and aim to increase our environmental performance through continuous
improvement of these aspects.
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CSR Policy and Code of Conduct

CSR Activities of GS Yuasa Corporation in 2017 (Web version)(2) We will address to reduce the environmental burden resulting from the activities conducted ateach stage of the life cycle of products and services, from acquisition of raw materials, development
and design/conception, production, transportation, use, until end-of-life treatment and nal
disposal.
(3) We will satisfy environmental needs corresponding to comply with environmental laws andregulations. In addition, if necessary, we address to develop our environmental risk managementwith operational control by voluntary management standards and for preventing accidents likely tolead to environmental pollution.
5-2 Providing environmental considerations products
We will contribute to the environmentally conscious society through the provision of products andservices corresponding to the environmental requirements.

6. Building better relationships with local communities
6-1 Contribution to sustainable development of communities
We recognize that we are member of the community and we aim to work together in cooperation
with the local community which is our foundation. We will respect local culture and customs.
6-2 Adoption of local human resources
We will actively adopt local human resources in the business activities of our overseas a liates andcontribute to the development of local communities through our business activities.

7. Ensuring social responsibilities within our supply chain
7-1 CSR procurement promotion
We will share CSR procurement guideline among our suppliers, then address to promote CSR
procurement upon interactive cooperation, aiming to ensure our social responsibilities acrossoverall supply chain.
Date : May 1, 2017
GS Yuasa Corporation
President Osamu Murao

See details of GS Yuasa's philosophy and Management vision-8-

CSR Policy and Code of Conduct

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

CSR Promotion Framework
Our CSR management, in which we seek to contribute to asustainable society and ensure long-term commerce, forms an
integral part of our aim to realize our corporate philosophy.
GS Yuasa Group's CSR"Innovation and Growth," our corporate philosophy, is the basis of the GS Yuasa Group's CSR. By reforming ourbusiness processes and by developing new technologies that go beyond a traditional approach, we aim togenerate innovation, and as a result, drive growth by expanding earnings and contributing to people, society
and the global environment. This is the basis of our CSR. Further, we aim to be a company that earns the longterm trust of society and becomes one that society wants to stay operating into the future and that responds
quickly, via our main business, to worldwide social issues as well as the needs and expectations of stakeholders.

Initiatives for the Fiscal 2017
Over the years, we have acted based on an awareness of our social responsibility in line with corporate rules
such as our Corporate Ethical Behavior Guidelines. Given the expectations of the international community forcompanies, however, the GS Yuasa Group in Japan has started to undertake global CSR initiatives. We created a
CSR Promotion Framework led by the CSR Committee, which was established through participation of members
from respective divisions in November 2016. Then, in May 2017 we formulated a CSR Policy and Code of Conduct
as the foundations for our CSR activities and disseminated these internally. In response to our CSR issues, we
identi ed key CSR challenges in relation to the Mid-Term Management Plan.
During this scal year, we will formulate an action plan and KPIs (key performance indicators) for theseimportant challenges and will make improvements by running a PDCA (plan-do-check-act) cycle. In addition, we
intend to write CSR procurement guidelines for the Group's supply chain and promote sustainable purchasing.
■ CSR Promotion Framework-9-

CSR Promotion Framework

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Medium- to Long-Term Initiatives
The GS Yuasa Group is planning medium- to long-term CSR initiatives as follows and has set targets for scal
2019 that incorporate these CSR challenges into the business strategy.
Phase

PeriodSecond
stage
Third
stage

FY 2018

Targetprocesses to deal with the CSR challenges in relation to our businessFirst stage FY 2016-2017 Create
strategy (Fourth Mid-Term Management Plan)FY 2019

Analyze and evaluate our performance using these processes and then make
improvements
Establish business processes that incorporate CSR challenges into our businessstrategy (Fifth Mid-Term Management Plan)- 10 -CSR Promotion Framework

CSR Activities of GS Yuasa Corporation in 2017 (Web version)Materiality
Materiality (Key CSR Challenges)
To re ect CSR challenges in our business strategy, the GS Yuasa Group analyzes and assesses the impact on
business and the impact of our business on society and then clari es the Group's materiality for items that need
to be addressed. Next, we will explain the materiality speci cation process that we implemented scal year
under review and the results.

Materiality Speci cation Process
Step 1: Identify risk and opportunity in CSR
For key challenges in the Mid-Term Management Plan, GS Yuasa identi es risk in CSR (that hinders the resolutionof these challenges) and opportunity in CSR (that promotes the resolution of the challenges). When identifying
these risks and opportunities, our actions are based on international guidelines related to CSR.

Step 2: Specify signi cant risk and opportunity in CSR

GS Yuasa evaluates and assigns a score to the scale of the CSR risk and ■ Matrix of key CSR domains
opportunity identi ed in Step 1 in consideration of the impact on
business (possibility of occurrence x scale of impact on business), whichenables us to specify risks and opportunities as key business challenges.
Next, we evaluate the impact of GS Yuasa's business activities onsociety relative to these core business risks and opportunities based on
the number of related CSR themes and social importance. We thenspecify risks and opportunities that will be key CSR domains.

Step 3: Specify materiality
GS Yuasa orders the core CSR risks and opportunities evaluated in Step 2 and then speci es materiality inconsideration of the response method to the risks and opportunities.
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Materiality

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Results of Speci cations
CSR Policy

Materiality

1. Developing fair, transparent, and sound business, andanti- corruption
2. Respect for human rights
3. Conservation and preservation of adequate working
environment
4. Ful llment of our responsibilities to provide safe andsecure products and services
5. Global environmental conservation
7. Ensuring social responsibility within our supply chain

Thoroughly ful lling our CSR and ensuring
complianceManagement of con dential information
Respect for intellectual property
Respect for individuality
Improvement of safety and health in working
environments
Human resources development
Provision of high-quality products
Promoting environmental protection
Developing and popularizing environmentallyconsidered products
CSR procurement promotion

Going forward, we will formulate an action plan and key performance indicators (KPIs) relative to the materiality
we have speci ed and look to make improvements via a PDCA cycle. In addition, we will clarify the correlation
between materiality and sustainable development goals (SDGs).

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Materiality

CSR Activities of GS Yuasa Corporation in 2017 (Web version)Developing Fair, Transparent, and Sound Business, and AntiCorruption
We are focused on strengthening our corporate governance to enhance
our sustainable growth and improve our medium- and long-term
corporate value.
Approach to Corporate Governance and Our Governance System
To drive sustainable growth and enhance corporate value over the medium and long terms, the GS Yuasa Group iscommitted to establishing an organization and systems that enable fast, e cient responses to a changing businessenvironment. At the same time, our basic policy on corporate governance is to make every e ort to thoroughly
implement and strengthen compliance and improve the soundness and transparency of management.
A new governance structure began in scal 2017 based on this philosophy. GS Yuasa Corporation, the holding
company, is responsible for formulating management strategies for all of the Group's businesses, as well as
management for the entire Group and oversight of the Group's business execution. GS Yuasa International Ltd., theGroup's core operating company, is the key decision-making body for business execution, consolidating andstrengthening business execution and making swift business-related decisions.
The Board of Directors makes quick, e ective decisions by prioritizing strategic decision-making and supervisory
functions for management policy. In addition, increasing the number of independent outside directors helps reinforce
monitoring.
■ Governance Structure

GS Yuasa is continuing to strengthen and enrich corporate governance based on this new structure.
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CSR Activities of GS Yuasa Corporation in 2017 (Web version)

For details, see Notice Regarding Governance Structure Reforms and Representative Director Replacement (released on May 9, 2017)﹡(https://www.gs-yuasa.com/en/ir/pdf/170509_1_e.pdf)

Evaluating the E ectiveness of the Board of Directors

The e ectiveness of the Board of Directors was evaluated between January and February 2016. All directors andcorporate auditors lled out a questionnaire and were interviewed on the structure, management, agenda and dutiesof the Board. After analyzing and evaluating the results, the Board of Directors was found to be running e ectively.
However, certain opinions held that some areas required reconsideration, notably the further deepening of discussions
regarding medium/long-term strategic management as well as the decision-making process and the structure of thebusiness group. In light of these ndings, the Group resolved to reform the governance structure. Going forward, we willcontinue to assess the e ectiveness of the Board of Directors and make further improvements.

Reasons for Appointing Internal Directors

GS Yuasa Corporation, to provide control over the Group as the holding company, applies a balanced approach toappointing directors with knowledge and experience that covers the business and functions of the entire Group andthat have the necessary aptitude and competence to ensure fast decision-making.

Policy on the Independence of Outside Directors

Candidates selected as outside directors must meet the requirements for independence set out in the Companies Act
and possess the experience and insight to objectively and fairly judge the legality and appropriateness of the executionof the company's duties from the shareholders' perspective without being limited by being in charge of business
implementation. Also, we believe in the importance of employing people who are outwardly independent and use theTokyo Stock Exchange's independence standards as their reference.

We are committed to promoting sound corporate management anddaily company-wide risk management.
Internal Control System
To strengthen the management foundation, the GS Yuasa Group has improved the system and relevant rules to ensure
the maintenance of ethical business practices based on the Companies Act. This system includes mechanisms to ensure
e ective auditing, information management, and risk management throughout the Group.
To comply with the internal control reporting system required under the Financial Instruments and Exchange Law, we
are maintaining an internal control system and nancial reporting mechanisms to meet all requirements.
Our international subsidiaries and other consolidated Group companies evaluate the status of the improvement andimplementation of internal controls. Following external audits, reports on these internal controls are publicly disclosed.

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CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Risk Management
Risk Management Based on Risk Management Sheets
The GS Yuasa Group has adopted risk management rules intended to avoid or reduce exposure to business risk and tominimize potential corporate losses. Every department assesses risk each month using a risk management sheet. On
this form, the department rst lls in the measures it is taking as a basic response to mitigate the risks it has identi ed
and to avoid any critical events as well as the policies to minimize loss if a critical event does occur. Every department
con rms the status of implementation of these measures and related polices each month. The department also lls inthe details of any critical events that occurred, as well as a summary of the response and the investigation into thecause and measures to prevent a reoccurrence. These preventive measures are fed back into the "basic response" andthe status of implementation is checked each month to provide a framework that ensures that similar events do nothappen again.
The risk management sheets produced by the departments are compiled at the divisional level with the director in
charge of the division verifying and assessing the status of response through a risk management committee. The
deliberations by the committees are summarized and then fed back to each department as part of a mechanism to
improve the e ectiveness of risk management.
■ Risk Management Sheet

System for Dealing with Crises
To prepare for the possibility that a risk materializes, we have established a system that includes an emergency contact
network to swiftly implement crisis management. When a serious crisis occurs, members of the Group Risk
Management Committee are appointed to organize a crisis management headquarters, under the president, tominimize corporate losses. The system we have set up enables us to implement an e ective response swiftly and withappropriate care.

Risk Management under the Group Risk Management Committee
The Group Risk Management Committee - headed by the ■ Risk Management Structure
president with the chairs of departmental Risk
Management Committees - holds semiannual meetings topromote Group-wide risk management and to encourage
the sharing of key information related to risk
management. The Risk Management Committee con rms
that the appropriate risk management measures havebeen implemented and the committee chairs report on
progress in this area. We also actively exchange opinions
and share information on the di erent styles of risk
management.
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CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Solid, multifaceted measures ensure that every person takes initiativewith a strong awareness of compliance.
Compliance
Basic Philosophy on Promoting Compliance
By training our personnel according to our philosophy of "Innovation and Growth" while manifesting our commitment
to society and preserving the global environment, we are ensuring that all employees are guided in their behavior
focusing on compliance with laws, company regulations and ethical standards.
Multifaceted activities with innovative methods are being used to promote compliance and ensure that the di erent
themes cover all levels of employees. When promoting compliance, it is also essential to establish rules and a structure
to follow, as well as a strong sense of commitment. In this spirit, we adopted Compliance Promotion Regulations in linewith the Compliance Declaration made by the president. The GS Yuasa Corporate Ethical Standards cover the 10 items
that all employees must support and the corporate ethical behavior guidelines that outline responses to speci csituations. Other activities are aimed at enhancing awareness, or getting every employee to think about what he or sheshould do for compliance.

Compliance Manual

We distribute a compliance manual to all employees that includes company regulations related to compliance. The 10item Code of Conduct includes commentary in a Q&A format, innovative ways to promote understanding with content
based on actual practices, an introduction to the GS Yuasa Group corporate ethics hotline, the Group's internal
whistleblower system and an emergency contact system for use in a crisis. In addition to distributing the manual, inscal 2016 we began spreading awareness of the content via an in-house email newsletter throughout the year with theaim of boosting awareness of compliance among employees.

Workplace Meetings on Compliance

Workplace meetings on compliance have been conducted for ve consecutive years since 2012. The purpose of thesemeetings is to improve employee awareness of compliance. The meetings, including active exchanges of opinion, were
held at 391 workplaces in scal 2016 with 96% of the sites commenting that the activities were e ective. Many topics
were covered, including prevention of inappropriate actions, management of work hours, harassment, occupational
health and safety, waste management, personal information protection, product safety, handling of con dential
information and subcontracting laws. The meetings use educational materials made by the division in charge on each
topic and including content related to the circumstances of the Group. We intend to continue running these meetings
and upgrading the content to ensure that it is both up to date and educational.

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CSR Activities of GS Yuasa Corporation in 2017 (Web version)

GS Yuasa Group Corporate Ethics Hotline
We established GS Yuasa Group corporate ethics hotline
regulations and set up a corporate ethics hotline.
Accessible both internally and externally, the hotline
enables employees, temporary workers, business
partners and others to provide information anonymously
if they become aware of behavior by a Group employeethat violates the law or company regulations or isunethical or otherwise inappropriate or any matter that is
at risk of becoming a violation. In scal 2016, ve reports
were made (eight in scal 2015), including one case ofharassment. We conduct inquiries and take appropriate
action, while remaining committed to protecting
whistleblowers.

Number of reports to the GS Yuasa Group corporate
ethics hotline
2013
5
2014
3
2015
8
2016
5

﹡Period: April to March of the following year

Compliance Survey
A survey related to compliance is conducted every year for all employees in which the Company's president gathers
questions on compliance in daily operations via email. In scal 2016, 2,936 people responded (response rate: 89%) withinformation on unethical or inappropriate behavior collected from 27 people. The details were carefully investigated to
not disadvantage the person who divulged the information and appropriate steps were taken. In addition, we will planand implement activities to raise awareness of compliance within the Group in light of the opinions provided on topics
to be addressed in the future.

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CSR Activities of GS Yuasa Corporation in 2017 (Web version)- 18 -

Respect for Human Rights

CSR Activities of GS Yuasa Corporation in 2017 (Web version)- 19 -

Respect for Human Rights

CSR Activities of GS Yuasa Corporation in 2017 (Web version)- 20 -

Respect for Human Rights

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Conservation and Improvement of Adequate Working
Environment
The GS Yuasa Group respects diversity and works to maintain andimprove a pleasant work environment. We are also committed todeveloping human resources with an emphasis on workplace
conditions.
Occupational Health and Safety
Reducing the Risk of Accidents
GS Yuasa makes health and safety-related assessments based on an organizational framework led by health andsafety committees in every business division and company. These assessments are guided by a health and safety
management policy intended to create a corporate culture that ensures worker safety and health.
To reduce the risk of occupational accidents, we identify the root causes of danger through risk assessments
and by promoting the safe operation of equipment and machinery. To develop safety-conscious employees, inaddition we appoint "safety trainers" who are vital for conducting safety-related programs in the workplaces,
including contract employees. We are working to entrench and improve safety through education on safety
procedures (danger prediction, risk assessments, etc.).
For work environment management and health management, we try to understand the workplaceenvironment through assessments and by monitoring the impact of harmful substances on workers throughspecial health diagnoses. The programs to make improvements are put in a PDCA cycle at major workplaces.
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

GY missed work frequency rate﹡1
Average frequency rate in manufacturing industry
GY rate of intensity﹡2
Average rate of intensity in manufacturing industry

0.21
1.00
0.00
0.10

0.00
1.05
0.00
0.10

0.37
1.00
0.00
0.09

0.55
1.06
0.01
0.06

0.85
1.15
0.01
0.07

﹡1 Missed work frequency rate is the number of people missing work per 1,000,000 work hours, calculated as :Missed work frequency rate = (Number of people missing work / Total number of work hours) x 1,000,000﹡2 Rate of intensity is the number of lost days due to accidents per 1,000 work hours, calculated as :Rate of intensity = (Days missed / Total number of work hours) x (300/365) x 1,000- 21 -

Conservation and Improvement of Adequate Working Environment

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Initiatives for Diversity
Promoting Women's Roles
GS Yuasa is taking steps to promote women's roles with the aim of developing women who can maximize theirpotential in whatever they do. We believe that providing the environment and opportunity for women's roles
will enable every woman to shine, which in turn will help us realize the "innovation and growth" stated in ourphilosophy. We aim to create a company where every female employee shines in her own unique way byenhancing the desire for personal growth and increasing the style and number of roles through the synergistic
e ects of what we call the "three Ls."
Declaration
GS Yuasa will provide a diversity of roles for
women that are bright, fun and a rming.
Action Plan Promoting Women's Roles (April 1, 2016 to March 31, 2019)
Objective Steadily increase the percentage of women hired 20% in FY 2016 30% in FY 2018
1
Objective Ensure that at least one woman a year takes part in next-generation select group training inorder to boost the business skills of female employees
2
Objective Support the strengthening of management abilities for supervisors in order to create anenvironment that encourages female employees to work to their potential
3

Employment of People with Disabilities
To promote the employment of people with disabilities, GS Yuasa o ers a wide range of opportunities to people
with disabilities, including in a company certi ed as a special subsidiary in December 2007.
As of June 1, 2017, 2.51% of GS Yuasa's employees were people with disabilities, which exceeds the legally
mandated employment rate of 2.0% as well as the previous scal year's mark of 2.47%.
We will continue to manage employment so that people with disabilities can put their skills and qualities togood use in an e ort to maintain and improve a pleasant work environment.

- 22 -

Conservation and Improvement of Adequate Working Environment

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Medium- to Long-Term Human Resource Development
Fostering Autonomous Acting Talent
At GS Yuasa, front-line workplaces are the engine that generates corporate value, and the lead players in those
workplaces are our employees. We believe the best training is on-the-job training, so with a strong focus on
management by objective we implement training to nurture autonomous acting talent. In o -the-job settings,
employees take part in communications training and voluntary training for career development and theimprovement of management skills.
■ Training System■ Basics of Human Resource Development

Promoting Work-Life Balance
Optimizing Work Hours
Aiming to be a workplace that protects the health of employees and enables them to work with peace of mind,
GS Yuasa is striving to ensure the most appropriate work hours, based on cooperation between labor andmanagement. An expert committee on work hours checks the condition of employees working long hours in
addition to introducing and using an attendance management system and access control system to accurately
understand and manage work hours.
We are taking steps to reduce labor hours for employees working long hours by providing consultation with anindustrial physician in accordance with the law and through an advisory system (see "Work Style Reform" below)
for supervisors. In addition, we provide compliance-related education with the themes of promoting
understanding of work hour rules and appropriately managing work hours.
- 23 -

Conservation and Improvement of Adequate Working Environment

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Work Style Reform
At GS Yuasa, labor and management are working as one to reduce long work hours and encourage employees totake annual paid leave with the aims of improving work e ciency and enhancing creativity at work by making
sure employees stay physically and mentally healthy. Currently, we are strengthening initiatives to provide
variation in work style by implementing the following: setting one "no overtime" day a week; making it
compulsory to take at least 10 days of leave a year; prohibiting two consecutive days of work on prescribedholidays; prohibiting overtime late at night (10 pm to 5 am); introducing a system to monitor employees working
in excess of the standard hours; and providing advice to supervisors on how to deal with overtime issues.
■ Percentage of Annual Paid Leave Taken (FY 2012 ■ Total Annual Work Hours (FY 2012 to 2016)
to 2015)﹡Notes: Employees do not include personnel on leave or thosetransferred to workplaces outside Japan.
The years shown in this chart refer to September in thespeci ed year to August of the following year, based on a
calculation method set by Japan's Ministry of Health, Labourand Welfare.

﹡Notes: Employees do not include personnel on leave or thosetransferred to workplaces outside Japan.
The average number of xed hours was calculated as xed
working hours minus hours absent from work due to days o ,arriving late to work or leaving work early, etc.
﹡Number of annual prescribed workdays = prescribed work
hours minus hours taken for leave and hours absent due totardiness, leaving work early, etc.
﹡Period: January to December- 24 -

Conservation and Improvement of Adequate Working Environment

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

GS Yuasa Designated as a "Company with Excellent HealthManagement"
GS Yuasa and four Group companies were each designated as a
Company with Excellent Health Management 2017 - White 500 ina program run by the Ministry of Economy, Trade and Industry
and Nippon Kenko Kaigi. The companies were recognized for (1)improving the health awareness of employees, (2) enhancing
and expanding the health management system, and (3)enhancing, expanding and diversifying initiatives to promotehealth.
Aiming to create a corporate culture that protects people's
safety and health, the GS Yuasa Group works with companies
and health insurance associations to support the health of
employees and their families.

Supporting Work Alongside Childcare/Nursing Care
GS Yuasa formulated an action plan based on the Act on Advancement of Measures to Support Raising NextGeneration Children as a joint labor-management program. We implement activities to achieve the objectives ofthe plan, with the aim of creating an environment that makes it easy for employees to participate in childcare.
We have also set up an in-house electronic message board called Supporting a Work and Childcare Balance
where we disseminate information on childcare-related systems to employees. To ensure that the childcare andnursing care support systems are being used, we are making every e ort to increase awareness of the systems
through training based on levels within the Company that include managers.
■ Percentage of Employees Taking Childcare Leave
FY

2014
2015
2016

Females

Males

Usage rate Birth Users Return-to-work rate Usage rate Birth Users Return-to-work
(%)
(%)
(%)
rate (%)

100.0
100.0
100.0

5
9
7

5
9
7

100.0
100.0
88.9

- 25 -

0.0
1.1
3.0

99
87
66

0
1
2

100.0
100.0

Conservation and Improvement of Adequate Working Environment

CSR Activities of GS Yuasa Corporation in 2017 (Web version)- 26 -

Conservation and Improvement of Adequate Working Environment

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Ful llment of Our Responsibilities to Provide Safeand Secure Products and Services
As a trusted manufacturer, GS Yuasa is constantly working to improvecustomer satisfaction and ensure safety.
Quality Policy
GS YUASA is committed to a diligent study of 'Monozukuri,' customer rst thinking and the improvement of products
and service for the realization of our Corporate Philosophy.

﹡'Monozukuri': Meaning 'manufacturing' is not just pointing to 'craftsmanship' in the narrow sense.
It is "the overall process of the corporation, the industry and the on-site activity,
implementing the designers' determination into the products and the services for customer
satisfaction, corporate pro t and job security."

Ensuring Quality and Safety through Company-wide Quality
Management
To remain a manufacturer trusted by customers at all times, the GS
Yuasa Group approaches manufacturing activities from the customer's
perspective and works relentlessly to improve the quality of products
and services.
To maintain this trust, we formulated, under the leadership of top
management, the GS Yuasa Quality Management System based on the
ISO 9001 standard and are promoting a quality management systemthat crosses business divisions. The quality of our products and services
is discussed company-wide every month by the Quality Management
Committee, which is chaired by a director (the executive o cer incharge of quality), to enable us to respond swiftly to any change.
President Osamu Murao was the chairman of this committee in scal
2016.
As part of our approach to manufacturing, we provide quality-related
education courses to all employees and promote kaizen (improvement)
team activities company-wide as a way to bolster the awareness ofquality among employees and to boost their understanding and skills
related to quality control. Our aim here is to always enhance the qualityof our products and services.
- 27 -■ Quality Management Organization

Quality Policy and Quality Management Organization

CSR Activities of GS Yuasa Corporation in 2017 (Web version)- 28 -

Quality Policy and Quality Management Organization

CSR Activities of GS Yuasa Corporation in 2017 (Web version)■ GS Yuasa Product Safety Action Flow

Improving Employees' Awareness of Quality
The GS Yuasa Group educates employees about quality to instill a "culture of quality" throughout the organization
based on our Basic Quality Policy.
The education is systemized. The level of quality control and type and rank of their job are considered so that
employees can be taught based on the type of their work and their experience. Basic quality-related education has been
compulsory for all new recruits since scal 2008 and their knowledge of quality control (QC) is tested with the QC
examination. 191 passed from grade one to four in scal 2016 with a cumulative total of 1,805 people passing the exam
company-wide up to scal 2016.
GS Yuasa will continue to position the raising of quality-related awareness and the attainment of knowledge asimportant issues going forward.
■ Cumulative Total of Successful QC Examinees■ Quality-related Education﹡Period: April to March of the following year
- 29 -

Quality Policy and Quality Management Organization

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

GS Yuasa Customer Consultation O ce (accepts inquires and provides consultation on the GS Yuasa
Group's products)
Toll free (in Japan):0120-43-1211 Hours:Weekdays 9:00 - 17:30
Excludes Saturdays, Sundays, public holidays and Company holidays
Valid only within Japan. Attended in the Japanese language only.

﹡- 30 -

Quality Policy and Quality Management Organization

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Examples of Activities
Presentation about the rst half of FY2017 24th Team Activities to
Drive Kaizen
Since 2004, GS Yuasa has presented the activities implemented company-wide that support kaizen, or continual
improvement. The goals are to enhance workplace capabilities, to learn from kaizen programs and their results
while sharing these across the board, to promote all employees participation in ways to change for the betterand dynamic communication, as well as to build a corporate culture with a mindset focused on improvement.
The Human Resources and Quality Management Divisions lead the organization of these activities.
A presentation about the rst half ofFY2017 24th Team Activities to Drive Kaizen was held on July 18, 2017 at
the Kyoto Head O ce. The presentation was video broadcast to ve locations in Japan and one overseas. Top
management and around 200 employees took part.
At the presentation, eight teams nominated by each business division presented examples of their activities inareas such as "solutions to problems in line with the quality control story," "improving operational andmanagement methods," "enhancing operational e ciency" and "initiatives to boost performance." After thepresentations, Director Yoshiaki Yamaguchi gave feedback to the teams in a general sense. At the end of theevent, President Osamu Murao expressed his appreciation to the teams and provided an assessment of thepresentations before handing out team incentive awards for improvement activities.
The 25th presentation - to be held in the second half of scal 2017 - is scheduled for December 4, 2017.
<Overall Assessment by President Murao>
I was pleased that there were so many interesting topics in the presentations today. Although we've had anumber of presentations from quality-related divisions in the past, this event also involved sales anddevelopment divisions as well as overseas sites, demonstrating how the scale of the activities has grown. I wasparticularly impressed with the presentation on the novel approach to the PDCA (plan, do, check, act) cycle
taken by the Sales Division. Quality control tools are skills that everyone has to attain. Going forward, I hope allof you will make the most of this opportunity by implementing quality control testing and making any necessary
improvements.

- 31 -

Fulfillment of Our Responsibilities to Provide Safe and Secure Products and Services
Examples of Activities

CSR Activities of GS Yuasa Corporation in 2017 (Web version)■ Presenting teams and topics
Presenting teams

1. Industrial Battery Manufacturing Department, Industrial
Battery Division, GS Yuasa Technology Ltd.

Presenting topics

Aiming to be the world's cleanest, safest
battery plant
2. Production Section 3, Global Production Division, GS Yuasa Boosting productivity on the battery charge E
Energy Co., Ltd.
line by stabilizing the labeling machinelabor hours and shortening
3. Development Department, Power Supply System Production Reducing
preparation
time by improving preparation
Division
systems
and strengthening reforms by
4. Original Equipment Sales Group, Tokyo Sales Department I, Enhancing
using customer asset management systems
Power Supply System Sales Division
more e ciently
5. Renewable Energy Sales Group, Kansai Sales Department II, Improving sales quality through the swift
Power Supply System Sales Division
implementation of a PDCA cycle
6. Yuasa Battery (Thailand) Pub. Co., Ltd.
Improving sales and pro ts in 2016
7. Special Battery Quality Control Group, Special Battery &the number of defects from work
Lithium-ion Battery Division Manufacturing Department, GS Reducing
errorsYuasa Technology Ltd.
8. Quality Assurance Department, Production Control Group,
Quality Control Group, Production Division, Blue Energy Co., Reducing the number of customer claims
Ltd.

At the presentation event

President Murao giving encouragement awards topresenters- 32 -

Fulfillment of Our Responsibilities to Provide Safe and Secure Products and Services
Examples of Activities

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Global Environmental Conservation
Fundamental Environmental Policy and Environmental Midterm Plans
The GS Yuasa Group works to protect the environment and makeconstant improvements that consider the impact on the global
environment of business operations, products and services.
Fundamental Environmental Policy
The Fundamental Environmental Policy of the GS Yuasa Group was established to serve as a guideline forenvironmental management. In our domestic o ces, we developed an organizational environmental
management system and have been promoting initiatives to implement our environmental policy, which isbased on our overarching fundamental environmental policy.We have developed mid-term plans for important
issues related to our environmental policy in order to contribute to the emergence of a sustainable society. We
continue to manage the status of implementation of these initiatives.

GS Yuasa Group Environmental Policy
Fundamental Philosophy

At the GS Yuasa Group, we set conservation of the global environment as one of our most important tasks, andwe contribute to the creation of a sustainable society through the development, manufacture, and sale ofbatteries, which are a form of clean energy, power supply systems, and lighting equipment.

● Action Agenda

1 We carefully evaluate the impact on the environment of our business activities, products and services, andwe work to save energy, reduce resources and waste, and recycle resources as a way to protect theenvironment, which includes preventing pollution. By making continual improvements in these areas, we
aim to improve our environmental performance.
2 We promote the development and design of products that protect the environment by considering how to
reduce the environmental burden at every stage of the product life cycle, including acquiring raw
materials, development and design, production, transportation, use and disposal.
- 33 -

Fundamental Environmental Policy and Environmental Mid-term Plans

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

3 We work to decrease environmental burdens with our business partners throughout our entire supply
chain, including materials procurement and physical distribution.
4 We have created environmental management systems according to ISO 14001 standards and have enacted
environmental policies at each of our o ces based on these fundamental policies. We also advance ourenvironmental management activities by setting related objectives.
5 We abide by all laws, ordinances, agreements, and regulations related to the environment, as well as otherrequirements agreed on by the Group. We also make voluntary management standards according to theseas necessary to promote environmental conservation.
6 We appropriately execute revisions based on environmental audits and management reviews to maintainand improve our environmental management systems continuously.
7 Through education, training, and other environmental awareness e orts, we promote the environmental
awareness of all Group employees, and we contribute to society through our environmental preservation
activities.
8 We seek to achieve good communications with our stakeholders and with society as a whole byappropriately providing information related to the environment, including our fundamental environmental
policy.

Environmental Mid-term Plans
We have developed mid-term plans for important issues related to our fundamental environmental policy inorder to contribute to the emergence of a sustainable society. We continue to manage the status of
implementation of these initiatives.

Third Five-Year Environmental Plan (FY 2014 to FY 2018) and FY 2016 Results
Sites covered: GS Yuasa International Ltd. (Kyoto, Osadano, Gunma and Odawara Plants)

Key items
Objectives
1

FY 2016 results

Self-Assessment / Challenges

Energy conservation andreduction of greenhouse
CO2 emission intensity fromgases
production was at the same level
We will reduce CO2 emission as scal 2013 (13.0 g CO2/Wh).
intensity from production inscal 2018 by at least 5%,
relative to scal 2013.
- 34 -

Energy consumption intensity
has remained roughly
unchanged since scal 2014,
while peak cut measures are theprimary factor behind atendency toward lower energy
costs.

Fundamental Environmental Policy and Environmental Mid-term Plans

CSR Activities of GS Yuasa Corporation in 2017 (Web version)- 35 -

Fundamental Environmental Policy and Environmental Mid-term Plans

CSR Activities of GS Yuasa Corporation in 2017 (Web version)- 36 -

Fundamental Environmental Policy and Environmental Mid-term Plans

CSR Activities of GS Yuasa Corporation in 2017 (Web version)- 37 -

Fundamental Environmental Policy and Environmental Mid-term Plans

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Environmental Management Systems
GS Yuasa operates environmental management systems that comply
with international standards.
Operation of environmental management systems
At GS Yuasa Group sites in Japan, we are developing■ PDCA Cycle
and using environmental management systems thatcomply with the ISO 14001 international standard.
At every site, we use a PDCA(Plan, Do, Check, Act)
cycle as part of a systematic framework forenvironmental management, enabling us to makecontinual improvements for environmental protection.

Organizational Structure
The organizational structure for GS Yuasa Group's environmental management systems includes an overall system
for the entire Group as well as speci c systems for individual sites.
In the Group-wide structure, the president of GS Yuasa serves as the chief executive o cer responsible forenvironmental management, overseeing the environmental management of the entire Group working withenvironmental o cers under direct supervision. Environmental issues that a ect the entire Group, such as
fundamental environmental policy, are discussed and nalized at management meetings.
We also have environmental management systems for individual sites. These are led by regional environmental
management oversight representatives and regional environmental management representatives, and important
information on environmental performance is shared with the Group-wide environment management team.

- 38 -

Environmental Management Systems

CSR Activities of GS Yuasa Corporation in 2017 (Web version)■ Overview of Organizational Structure

Environmental Auditing
We conduct internal environmental audits at every GS Yuasa Group business site to determine whether ourenvironmental policy is being implemented appropriately and that environmental objectives are being met. In
addition, we evaluate the environmental management system to improve performance as well as to improve thesystem itself. We also have an environmental certi cation agency conduct external environmental audits to checkthe conformity and e ects of our environmental management systems.
Internal environmental auditing

Internal environmental auditors — with quali cations
gained from training both inside and outside thecompany — determine the condition of the following:
1. Compliance with environmental laws andregulations, etc. (legal compliance audit)
2. Maintenance and management of environmental
management systems (system audit)
3. Degree of achievement of environmental objectives(performance audit)

External environmental auditing

Audits of the status of maintenance and management
for environmental management systems based on ISO
14001 standards and the functioning of PDCA cycles
con rmed that every business site adheres to ISO
14001 standards. We will continue working to improvethese systems by evaluating environmental
management from a third-party perspective and byusing information on such items as areas needing
improvement.

- 39 -

Environmental Management Systems

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Environmental Education
The GS Yuasa Group employs di erent types of environmental education to maintain and improve environmental
management systems. In addition, we regularly provide training to avoid exposure to environmental risk.

General Environmental Education■ Employee education
In every division, we provide education to all employees to build awareness of their role in achieving theenvironmental policy.
■ Education for new recruits
New recruits are made aware of the GS Yuasa Group's basic philosophy on environmental management.

Specialized Environmental Education■ Training of internal environmental auditors
At every business location, we train internal environmental auditors and provide them with education to boost
their skills to continually improve our environmental management systems.
■ Emergency response training
In every division, we regularly provide training on responses to potential emergencies to all employees working inoperations that have signi cant potential impact on the environment.

Comprehensive Compliance Management
The GS Yuasa Group regularly reviews the environmental laws and regulations that must be obeyed, and ensures,
through monitoring, that operations are managed in a way that is legally compliant.
Further, business is conducted in compliance with environmental laws and regulations since we use hazardous
substances, such as lead, in our products and we must obey the laws and regulations related to the operation ofrecycling systems for used products.
There was no litigation and there were no punitive nes or administrative nes for nonadherence toenvironmental laws or regulations in scal 2016.

Preventing Exposure to Compliance Risk and Environmental
Pollution Risk
In every business location, we work to prevent environmental pollution through operational management basedon voluntary standards that are stricter than regulatory standards based on environmental laws, regional
ordinances and agreements.
- 40 -

Environmental Management Systems

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

In working to mitigate the risk of environmental pollution, we take action in operations where there is thepossibility of water contamination, air pollution or soil contamination. This includes tangible actions: increasing
the visibility of operations and preventing spills as well as using equipment to remove noxious substances andintangible measures, such as equipment inspections, monitoring, measuring and enhancing operating procedures.
Also, we have identi ed the following potential emergency situations that could have a serious impact on theenvironment, and we are taking steps to prevent these situations from occurring.
● Spills of liquid waste from outside tanks, pipelines, etc. and underground seepage that exceeds accepted
standards● Discharges into the air of soot and smoke from melting furnaces, dust collectors and dehydrators that exceeds
accepted standards
To make sure we are fully prepared for an emergency, we regularly hold emergency response training to help
minimize damage.
There were no instances of emergencies directly related to environmental pollution at any of our businesslocations in scal 2016.

- 41 -

Environmental Management Systems

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Environmental Performance and Environmental Accounting
We are committed to continually improving environmental
performance and to evaluating the e ectiveness of our environmental
activities.
Flow of Materials in the Product Life Cycle- 42 -

Environmental Performance and Environmental Accounting

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Management of CO2 Emissions at Production Sites Worldwide
The GS Yuasa Group undertakes global initiatives to identify and reduce CO2 emissions from production around theworld.
The table below shows CO2 emissions for scal 2016 at major production sites worldwide. 92% of these production
sites have obtained ISO 14001 certi cation and, to promote reductions in CO2 emissions, are using an environmental
management system that complies with international standards and regulations.
The periods covered by the calculations are:Japan
April 1, 2016 - March 31, 2017
Outside Japan
January 1, 2016 - December 31, 2016
■ CO2 emissions by country (Unit: t-CO2)■ CO2 Emissions at Production Sites by Country (Unit: t-CO2)
Country

Japan

China

TaiwanVietnam

Production site

GS Yuasa International Ltd. (Kyoto, Osadano, Gunma and Odawara Plants)
Lithium Energy JapanGS Ibaraki Works, Ltd.
Tianjin GS Battery Co., Ltd.
Yuasa Battery (Shunde) Co., Ltd.
Yuasa Battery (Guangdong) Co., Ltd.
GS Battery (China) Co., Ltd.
Tianjin Yuasa Batteries Co., Ltd.
Taiwan Yuasa Battery Co., Ltd.
GS Battery Taiwan Co., Ltd.
GS Battery (Vietnam) Co., Ltd.
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CO2 emissions

118,244
31,416
4,649
41,94928,56520,8507,306
5,781
52,06133,75911,586

Environmental Performance and Environmental Accounting

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Environmental Performance and Environmental Accounting

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Environmental Performance and Environmental Accounting

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Environmental Performance and Environmental Accounting

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Environmental Accounting
Scope of calculations for environmental accounting
Structures
PeriodcoveredReference

Six domestic sites (Kyoto, Osadano, Odawara and Gunma Plants, Lithium Energy Japan and GS
Ibaraki Works, Ltd.). Note, however, that environment-related equipment costs within business area
costs do not include onsite a liated companies.
April 1, 2016 - March 31, 2017
Environmental Accounting Guidelines 2005 Edition (issued by the Ministry of the Environment)

Environmental conservation costs (categorized by business activity)
Category

Key initiatives(Thousands of yen)

Kyoto Osadano Odawara Gunma Lithium
GS Total
Plant Plant Plant Plant Energy
IbarakiJapan

Business area costs
504,517 228,438(total)Pollutionorts to prevent air,prevention Ewater
348,356 146,703
and soil pollution
costs
GlobalE orts to reduce
Breakdown environmental
51,103
13,144conservation greenhouse gas emissions
costs
Resource
E orts to ensure
recycling
105,058
68,591suitable disposal of waste
costs
Upstreamand downstream Additional e orts to reduce432
8
costs*1
environmental burden
Employee education and ISO
Management activity costs*2 14001 maintenance and16,593
1,999
management
Research and development e orts
Research andin consideration of the
5,960,660 1,630,266
development costs
environment
Social activity costs
Environmental volunteer e orts
600
748
Environmental *3
E orts related to soil pollution
0
2,214
remediation costs
measuresTotal
6,482,802 1,863,672- 47 -

35,00555,63792,75639,197955,550

7,649

27,478

10,813

16,741

557,740

14,706

18,821

22,41013,080133,264

12,6509,338

59,533

9,376

264,546

15

0

0

0

455

357

80

840

707

20,576001,942,075

318

825

2,573

260

5,323

0

0

0

0

2,214

35,69456,542

2,038,243

0 9,533,000

40,164 10,517,118

Environmental Performance and Environmental Accounting

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Economic e ect of environmental conservationinitiatives
Category

Economic e ects of more e cient water use
Energy conservation e ects
Waste reduction e ects
Resource recycling e ects

(Thousands of yen)

Key item

Water use and wastewater cost reduction
Cost reductions for electricity, heavy oil andgas (city gas, LNG, LPG)
Cost reduction for industrial waste treatment
Pro t from recycling and reusing waste

Monetary amount-2,485*3
404,117*3-8,440*3
146,669

E ect of environmental conservation
Category

E ects related to resources used in businessactivities

E ects related to environmental burden andwaste from business activities

Key items

Amount of recycled water used
Amount of reduction in water use
Amount of CO2 reduced
Amount of waste reduced ( nal disposal
volume)Amount of wastewater reduced
Amount of waste recycled
Recycling rate
[Water quality] Amount of lead discharged[Air] Amount of lead emitted

Material amount

1,420,595m3
17,258m3*3-3,970ton-CO2*3
5ton*3
10,688m3*3
8,726ton*3
99%
23kg
103kg

*1 Upstream and downstream costs are the total of consulting expenses and expenses for contracts to create new products based on the Law
for Promotion of Sorted Collection and Recycling of Containers and Packaging.
*2 In addition to employee education, and costs related to ISO 14001 maintenance and management, the management activity cost includes
expenses related to information disclosure.
*3 The tables show amounts reduced compared with the previous scal year (negative amounts represent increases).
*4 Recycling rate (%) = (amount recycled / amount of waste) x 100- 48 -

Environmental Performance and Environmental Accounting

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Activity to Decrease Environmental Burdens
The GS Yuasa Group is working to lessen the Group's environmental
burden not only at the manufacturing stage but also throughout the
product life cycle.
Development and design
Design for the Environment (DfE)

The GS Yuasa Group's products have some impact on the environment during every stage of the product life cycle,
from procurement and manufacturing to transportation, use and disposal. For this reason, we are committed todesigning products based on the GS Yuasa Design for the Environment Guidelines with the aim of reducing theenvironmental burden throughout the product life cycle, which includes the consumption of resources, theemission of greenhouse gases, and waste. The guidelines cover design that considers the materials used in the
product, the 3Rs (reduce, reuse, recycle), ease of disassembly, labeling, energy conservation and packaging. The
GS Yuasa Group promotes the development and design of environmentally considered products through design for
the environment (DfE) by using these guidelines while, at the same time, maintaining and improving theperformance of products.

Implementing environmental impact assessments for products

For an environmental assessment of product design, design departments employ design standards and thenevaluate the suitability of products in design review (DR) meetings based on environmental impact assessments ofevery stage of the product life cycle. When environmental impact standards are not met, we review the design
standards and redesign the product. We use the expertise of several departments in addition to design
departments, including engineering, marketing, procurement, quality and the environment, to make sure that theresults of Design for the Environment (DfE) are communicated widely, which also maximizes their e ectiveness.
■ Environmental Assessment Items
1. Energy conservation
3. Recyclability
5. Ease of separation and processing
7. Material selection
9. Energy e ciency

2. Volume reduction
4. Ease of disassembly
6. Safety and environmental conservation
8. Ease of maintenance
10. Reusability (lifecycle extension)- 49 -

Activity to Decrease Environmental Burdens

CSR Activities of GS Yuasa Corporation in 2017 (Web version)■ Flow of Environmental Assessment

Re ecting information in the products we distribute

Important information, such as customer requirements for GS Yuasa Group products, is used when we change thedesign of existing products or design new products. This helps boost the value of our Design for the Environment.
Information from interested parties related to after-sales service, returns and complaints are used as a valuable
resource to improve the environmental performance of products.

Management of chemical substances contained in products

The GS Yuasa Group takes steps to provide products with minimal environmental burdenbased on the Chemical
Substance Management Guidelines, which clarify the standards for chemical substances in products. These
guidelines are part of initiatives to examine chemical substances contained in materials delivered as stipulated in
the GS Yuasa Group green procurement criteria. With these guidelines, we classify chemicals contained in our mainmaterials, as well as the secondary materials and the parts used in the products that the Group makes and sells as
either prohibited substances or managed substances. The GS Yuasa Group works with suppliers to identify andde nitively manage the substances covered by the guidelines to raise the environmental quality of our products.

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Activity to Decrease Environmental Burdens

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Activity to Decrease Environmental Burdens

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Activity to Decrease Environmental Burdens

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Remote monitoring of power demand

Graph showing power demand management

Power and water conservation through facility upgrades

Air conditioning units in some areas of the Kyoto Plant were used for 34 years, and the system was ine cient,having all units working simultaneously from the rst to the fourth oors. For these reasons, we decided to
upgrade to more e cient air conditioners in scal 2016 to both replace aging facilities and save energy.
This upgrade enabled air conditioning on individual oors and conserved energy in the units themselves, alongwith shift to the latest gas heat pumps, which resulted in cutting peak power consumption. In addition, althoughcooling towers built with the previous air conditioning units had been using around 1,000m3 of water annually,
this water consumption became unnecessary thanks to the facility upgrade, which enabled air conditioning
without such towers.
By reducing the environmental burden through upgradingfacilities, we have reduced power, water and seweragecosts, as well as other costs, including maintenance expenses, by simplifying facility maintenance andmanagement. Further, these initiatives reduced the investment infacilities, since the upgrade projects were eligible
for subsidies for businesses investing in ways to save energy and boost productivity.

Shift to LED Lighting

The Kyoto Plant is promoting a shift to LED lighting forenergy conservation.
In scal 2016, we upgraded from high-pressure
electric discharge lamps to LED lamps for the arena
lighting in the gymnasium. Through this move, we areforecasting a reduction in costs associated withlighting, since power consumption was cut to 57%
compared with the previous scal year and the productlife has more than doubled relative to the previous
New LED lighting in the arena section of thelighting equipment. The new lighting brightens up the gymnasiumoor as soon as it is turned on and has been very wellreceived.

Internal Processing of Con dential Documents

The Kyoto Plant is installing an internal processing system for con dential documents that are no longer required.
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Activity to Decrease Environmental Burdens

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Every month, this plant generates approximately 100 boxes of con dential documents that are no longer
required. Previously, these documents were put in the shredder and processed by an outside contractor. Shifting
to internal processing, however, has reduced the risk of con dential information being leaked. The process
dissolves used paper and employs only water rather than chemicals, such as organic solvents. Water is thenrecycled. We encourage the employment of persons with disabilities for operations involved in the internal
processes such as separation.
Today, some con dential documents that are no longer required are inserted into a single machine for dissolving
as part of test operations. Going forward, we intend to use this system completely by installing two additional
machines.
■ Overview of internal processing of con dential documents no longer required

Transportation
Reducing energy consumption in logistics

The GS Yuasa Group promotes energy conservation for ■ Energy consumption per freight forwarding
freight forwarding (shipping) as one way to reduce the(crude oil conversion)
environmental burden during the product life cycle.
As part of coordinated e orts to save energy, we
created a system to identify the quantity of goods being
shipped, as well as energy consumption and CO2
emissions during logistics. After that, a panel of experts
regularly checks the results (relative to targets for
reducing energy). We also work to reduce the quantityof items shipped between sites by integrating physicaldistribution base and we have conducted a modal shift
from trucks to rail containers for transportation.
Through these activities, we succeeded in reducing
the energy consumption intensity in scal 2016 by 10%
compared with scal 2013. Going forward, we will strive
to continually improve energy e ciency in logistics andwill promote activities that lower the environmental
burden and logistics costs.

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Activity to Decrease Environmental Burdens

CSR Activities of GS Yuasa Corporation in 2017 (Web version)Operation of an Eco Rail Mark System

The Eco Rail Mark System is a system of certi cation for companies and products that make thorough use of railtransportation for minimal environmentalburden. The GS Yuasa Group has been designated as a certi ed company
by the Railway Freight Association for seven series of batteries for automobiles and motorcycles have beencerti ed. By getting customers to purchase certi ed products, we are promoting activities in which customers andcompanies can participate together to reduce the burden on the environment. In scal 2016, although we
eliminated single-way routes due to changes in transit and arrival times caused by revisions to the timetable forrail freight we were able to start two-way rail freight. The Group will promote logistics that consider theenvironment by increasing the amount of freight shipped by rail.
■ Ratio of freight forwarding volume

Examples of GS Yuasa Group products with Eco Railcerti cation

Resource recycling
A wide-area certi cation system aims to involve the manufacturers of a product in the product's recycling anddisposal once it reaches the end of its useful life. These systems make possible more e cient recycling and provide
feedback on product design leading to easier disposal and reuse, while ensuring that discarded goods aredisposed of properly.
In January 2008, the GS Yuasa Group in Japan acquired wide-area certi cation from the Ministry of theEnvironment for industrial batteries and power supplies, and in January 2009 started accepting orders in earnest
for a recycling system based on this certi cation. In FY 2010 and FY 2013 we broadened the range of eligible
products, and in FY 2011 we reviewed the operating rules related to small products, resulting in an improvement of
our secure, e ective disposal system for discarded goods.
In FY 2016, the amount of discarded goods we processed under the wide-area certi cation system reached 4,963
tons. This gure was 99.9% of the discarded products the GS Yuasa Group in Japan collected in the same period. As
far as industrial batteries for the domestic Group are concerned, the wide-area certi cation system is now rmly
established.
In the future, we will promote even more e ective operation of the wide-area certi cation system to improvecustomer service as well as to recycle and properly dispose of post-use products.

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Activity to Decrease Environmental Burdens

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Activity to Decrease Environmental Burdens

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Building Better Relationships with Local Communities
We contribute to local communities through our business activities.
Stable Supply of Photovoltaic Generation Systems
A photovoltaic generation system using the GS Yuasa's lithium-ion batteries has been in operation at the Kushiro
Town Toritoushi Wildland Photovoltaic Generation Plant in Hokkaido since April 2017.
When generating photovoltaic power, changes in natural conditions, such as sunshine hours and temperature,
can lead to signi cant uctuations in the power generated, while a major increase in the photovoltaic power load
could reduce the quality of the system's power in terms of both voltage and frequency. For this reason, in Hokkaido,
it is necessary to reduce output uctuations by installing storage battery systems when connecting photovoltaic
power generation to power systems. The GS Yuasa Group's lithium-ion battery system was installed at this plant as a
key device to reduce power output uctuations.
The Group continues to promote the use of high-performance lithium-ion battery systems in power generationand is aiming to contribute to creating sustainable local communities using renewable energy.

Industrial lithium-ion battery module LIM50EN series

Overall view of Kushiro Toritoushi Wildland
Photovoltaic Generation Plant- 57 -

Building Better Relationships with Local Communities

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Building Better Relationships with Local Communities

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Ensuring Social Responsibility within Our Supply Chain
The GS Yuasa Group, together with the supply chain, will contributeto creating a sustainable society.
Major Procurement Programs
The GS Yuasa Group provides education and guidance on compliance and CSR (corporate social responsibility) tobusiness partners, checks the way they manage harmful substances in products, responds to con ict minerals via
surveys and encourages green procurement. We also started activities to help our business partners improve
results as well as study sessions and presentations on how to boost quality.
Through better partnerships in the supply chain, we are improving the results of both our business partners andthe GS Yuasa Group, while decreasing business risk.
Basic Procurement Policy
We intend to boost the results of our business partners and the GS Yuasa Group by working
to create better partnerships based on mutual understanding and relationships of trust.

Brie ng Sessions on Production
GS Yuasa holds brie ng sessions on production run by management as well as social gatherings every year toincrease our major business partners' understanding of the GS Yuasa Group's management policies, annual
business policy and basic procurement policy. This also deepens mutual understanding and strengthens
relationships of trust with these business partners. In addition, we give awards to business partners who havemade outstanding contributions to quality, price and the supply system over the previous scal year.

Ensuring Quality and Health/Safety
To promote activities that raise quality and enhance health and safety, including for business partners who supply
parts and raw materials, the GS Yuasa Group provides guidance on quality re ecting the needs of our business
partners as well as health and safety patrols, if required. In programs that raise quality, we share with business
partners the target values and the results of quality defect analysis of products supplied to the Group and work to- 59 -

Ensuring Social Responsibility within Our Supply Chain

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Ensuring Social Responsibility within Our Supply Chain

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Green Procurement
The GS Yuasa Group in Japan makes the following
requests of business partners based on our Green
Procurement Criteria.

■ Introduction of Environmental Management
System by Business Partners (FY 2016, transaction
amount base)Requirements for Business Partners
1. Operation of an environmental management
system
2. Examination of chemical substances contained in
items being supplied
3. Checking the legality of cutting down certain
trees (logging)
4. Programs to identify and reduce CO2 emissions
For 2. above, we ask our business partners to
examine substances using Chemical SubstanceManagement Guidelines, which comply withinternational laws and regulations including EU
directives (REACH, RoHS, etc.), and to test individual
chemical substances as speci ed by customer needs.
GS Yuasa evaluates the appropriateness of
stipulations to business partners concerning green
procurement by checking and auditing the status of
their response. By prioritizing those business partners
that supply goods that conform to green procurement
standards, we are reducing the environmental burden,
including the burden within the supply chain.

Promoting CSR-based Procurement
The GS Yuasa Group assesses business partners using a QCDE approach (quality, cost, delivery and environment).
Going forward, we will add elements of CSR to these assessments to ensure that our social responsibility is being
met throughout the supply chain. To achieve this goal, we will share the GS Yuasa Group's CSR Procurement
Guidelines with our business partners and work to promote CSR procurement based on mutual cooperation. For
new transactions, we will prioritize business partners that understand and accept the Group's CSR Policy.
In brie ng sessions on production in scal 2017, we are asking our business partners to strengthen their CSR
initiatives and to cooperate with us on CSR-based procurement, and we plan to identify CSR risk in the supply
chain by analyzing survey and assessment results.

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Ensuring Social Responsibility within Our Supply Chain

CSR Activities of GS Yuasa Corporation in 2017 (Web version)

Editorial Policy
Final update: November 16, 2017
We report herein on the GS Yuasa Group's CSR activities. We disclose information that considers the opinions ofstakeholders and their importance to the GS Yuasa Group.

Period covered

Focus on Fiscal 2016 (April 1, 2016 to March 31, 2017)

Coverage
GS Yuasa Group (GS Yuasa Corporation and major domestic and overseas subsidiaries)
The term "the Company" refers to GS Yuasa Corporation. An explanation is given in a particular situation if thiscoverage di ers.

Accuracy of information
To ensure the accuracy of the information we disclose, it is veri ed by multiple departments rst, such as thedepartment in charge of the speci c area and the Public Relations Department.

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Editorial Policy