ESG Information

Corporate Governance
Basic approach and structure of corporate governance
KAGA ELECTRONICS recognizes that enhancing corporate
governance is a key management issue. The Company istherefore building a corporate governance system with thefundamental policies and aims of ensuring total compliancewith corporate ethics, laws, and regulations, reinforcing
internal control systems, and securing the soundness, efficiency,
and transparency of business operations to improve its corporate value. Moreover, in light of the importance of corporate
governance, the Company maintains the CSR Promotion
Committee, the SDGs Committee and the Nomination andCompensation Committee, thereby strengthening its corporate
governance structure.
KAGA ELECTRONICS is a company with a board of directors
and board of auditors. It has adopted a corporate governancesystem based on collaboration among its Board of Directors,
auditors and Board of Auditors, and with the accounting
auditor. In principle, the Board of Directors meets once amonth and holds extraordinary meetings on a flexible basis.
The Board of Directors makes decisions on important mattersrelated to items stipulated by laws and regulations as well as

to management, and it supervises the execution of duties bydirectors. Consisting of six directors, including three of bothinternal and outside directors, the Board of Directors is
capable of sufficiently discussing the aforementioned mattersand making accurate and swift decisions. In addition, although
the Company has maintained an employment-based executive
officer system since April 1, 2005, it switched to a commissioned
executive officer system on April 1, 2022, in order to further
enhance corporate governance. Based on this system, theCompany has even more clearly defined the roles of individuals
tasked with management decision making and supervision andthose tasked with business execution, thereby facilitating theseparation of functions. Moreover, with this move the Company
secured a structure capable of responding swiftly to changes
in the external environment even as it strengthened both Boardof Directors functions and executive functions. The Board ofAuditors consists of four auditors, including three outside
auditors. Auditors regularly attend Board of Directors meetings
while proactively participating in other important internal
meetings as part of their duties.

Corporate Governance Organizational Diagram
General Meeting of Shareholders

Nomination and Compensation
Committee

Advice /consultation

Board of Directors (directors)

Selection / dismissal

Selection / dismissal

Selection / dismissal

Board of Auditors (auditors)

Audit

Audit
Collaboration

Representative Director,
Founder & CEO• Environmental Issue
Working Group• Social Issue
Working Group• Governance Issue
Working Group31

CSR Promotion
Committee• Compliance Committee• Risk Management
Committee• Information Disclosure
Committee• Personal Information
Management Committee

Representative Director,
President & COO

Collaboration

Audit

Group Management
Headquarters Council

Audit Office

Management Meeting

CSR Promotion Committee

The SDGs Committee is chaired by the President and COO,
and comprises each division’s chief officers, among others.
Working groups on the environment (E), society (S), and governance (G) are set up under this committee to establish
guidelines, measures and objectives for these ESG issues, aswell as to monitor progress and perform other functions.

The CSR Promotion Committee is chaired by the
Representative Director, President & COO. The Company
established Information Disclosure Committee, Risk
Management Committee, Compliance Committee andPersonal Information Management Committee as subordinate organizations. These organizations work to normalize
decision-making and the execution of business operations
throughout the Group.

Outside officers
The Company has appointed three outside directors and threeoutside auditors. Based on the Tokyo Stock Exchange standards on independence, we appoint outside officers who do nothave any special interests in the Company and who have extensive experience and broad powers of judgment in corporate
management. The auditors are also required to have highly
specialized knowledge and maintain independence from management executives.
The Company has established a staff office of the Board of
Directors, that distributes materials related to matters ofdeliberation by the Board to all officers, including outside officers, ahead of the meeting day. The staff office provides supplementary explanations to the outside officers when needed
to ensure that adequate information is imparted in advance.
This helps support lively debate at Board of Directors meetings. By the end of each fiscal year, the staff office sets theschedule for the regular Board of Directors meetings for thefollowing fiscal year and notifies all officers, including outside
officers, of this schedule in order to improve attendance.

Attendance at Board of Directors Meetings

Collaboration

Accounting auditor

SDGs Committee

Consult / advise

SDGs Committee

Audit

Divisions and Group companies

Status of attendance at Board of
Directors meetings held during
the year ended March 31, 2023
Position andassignment
at the Company

Attendance(times)Attendance
rate (%)

Isao Tsukamoto

Representative
Director, Founder &
CEO

17/18

94.4

Ryoichi Kado

Representative
Director,
President & COO

18/18

100.0

Director,
Senior Managing
Executive Officer

18/18

100.0

Name

Nomination and Compensation Committee

Audit Office

Shintaro Kakei

The Company has established the Nomination andCompensation Committee in an effort to secure the transparency and objectivity of its process for nominating
candidates for directors and auditors, evaluating their performance and determining remuneration for these individuals. The Nomination and Compensation Committee
consists of at least three directors selected by the Boardof Directors, a majority of whom shall be independent
outside directors, and the chairperson of the committee
shall be selected from the independent outside directors.

The Company established an Audit Office under the direct
authority of the Representative Director, President & COO. The
Audit Office works in collaboration with the Administration
Headquarters, etc., conducting audits to assess the appropriateness of business activities undertaken by Group companies andother entities, monitor the status of management resources theyuse, and confirm that they are in compliance with laws and regulations, the Articles of Incorporation, and other internal rules.
Moreover, pursuant to the Financial Instruments and Exchange Act,
the Audit Office conducts evaluations of internal control systems.

SusumuMiyoshi

Outside Independent

Outside Director

18/18

100.0

Akira Tamura

Outside Independent

Outside Director

17/18

94.4

Noritomo
HashimotoOutside Independent

Outside Director

18/18

100.0

KAGA ELECTRONICS CO.,LTD.

Outside : Outside directors  Committee membership
Nomination andCompensation
Committee

CSR Promotion
Committee

SDGs Committee

Independent : Independent directors as defined by the rules of the Tokyo Stock Exchange   ● : Committee chair   ● : Committee member

Integrated Report 2023

32

ESG Information

Internal Control / Compliance
Basic approach to internal control systems

Areas of specialty of Directors and Auditors
Corporate
management

Name

Globalbusiness

Sales andmarketingLaw
and riskmanagement

Finance andaccounting

Personnel
management Technology
andand human
manufacturingresource
development

IT anddigitaltechnology

Isao Tsukamoto

Directors

Ryoichi Kado

Shintaro Kakei

Susumu Miyoshi

Outside Independent

Akira Tamura

Outside Independent

Potential risks that the Group faces include factors relating toeconomic conditions, exchange rate fluctuations, country risks,
price competition and rivalries, product procurement capabilities,
internal brand risks, legal regulation, market risks, major litigation, severance pay obligations, personal information, accidents, the environment, and information management. As partof efforts to create the needed appropriate systems to manage
every risk the Group may face, the Company has designateddivisions tasked with handling specific risks while appointing

Auditors

Eiji Kawamura

Outside Independent

Yoichi Sato

Outside Independent

Kyoko Oyanagi

Outside Independent

Note: Up to four skill categories are presented per individual in line with the Company’s expectations regarding their contributions in their respective areas of specialty. The above matrix
does not fully describe the expertise possessed by each individual.

Remuneration system for officers
The Company’s basic policy regarding remuneration for its
directors is to structure a remuneration system that is linked
with shareholder interests and that robustly incentivizes these
individuals to strive for ongoing improvement in corporate
value, with the aim of securing and retaining excellent humanresources capable of practicing and realizing its corporate philosophy. To this end, the Company strives to set remunerationfor each director at a level commensurate with their assigned
responsibilities. Specifically, remuneration for executive directors

comprises basic fixed remuneration, performance-linked
remuneration, and share-based remuneration. Remunerationfor outside directors, who are tasked solely with exercisingsupervisory functions, consists only of basic remuneration due
to the nature of their duties.
The Company has also made it a rule to ensure thatprocedures for determining remuneration for directors arerational, objective and transparent as is the content of such
remuneration itself.

Total amount of remuneration for the year ended March 31, 2023

33

Total remuneration, etc. (millions of yen)

Number of recipients

Directors (Of which, outside directors)

1,039 (40)

11 (4)

Auditors (Of which, outside auditors)

46 (10)4 (2)KAGA ELECTRONICS CO.,LTD.

clarify the scope of authority of each director. As a company
adopting a system of corporate auditors, each auditor, including
each outside auditor, conducts detailed audits on the executionof duties by directors.
In addition, the Company has formulated the Basic
Compliance Rules, which serve as a code of conduct to ensurecompliance with laws and regulations and the Articles ofIncorporation as a means to enable the proper execution ofduties by employees of the Company and Group companies.
And to make this effective, the Company has also set up theCompliance Committee under the umbrella of the CSR
Promotion Committee chaired by the President & COO. In thisway, the Company secured a structure to ensure theappropriate execution of business throughout the Group.

Risk management system

Noritomo Hashimoto Outside Independent

Susumu Kitsunai

The Kaga Electronics Group is aware that enhancing corporate
governance is an important management issue. Our fundamental policy is ensuring compliance with corporate ethics
and laws and regulations and reinforcing internal control
systems while maintaining the soundness, efficiency andtransparency of management and raising corporate value.
To this end, the Company has defined its basic approach tointernal control systems. Moreover, the Company has established Rules on Officers and Board of Directors Rules toensure the proper execution of duties by directors and theBoard of Directors. The directors monitor one another’s
execution of duties at regular and extraordinary meetings ofthe Board of Directors. The Company has also established
Organization Rules, Rules on the Allocation of Work Duties,
Rules on Work Authority, and Rules on Internal Approval torisk control officers and managers tasked with spearheadingrisk countermeasures undertaken by such division.
The Risk Management Committee, a subordinate body of
the CSR Promotion Committee, analyzes and examines theGroup's various risks, and the predetermined departments incharge of each foreseeable risk are working to mitigate therisks. In addition, the Company has established Risk Management
Regulations to clarify how to respond to risks in business operations and to strengthen the risk management system.

Ensuring appropriate operations at Group companies
The Company has established Rules on the Management ofAffiliated Companies to ensure appropriate business
operations at affiliated companies and executes controls basedon these rules. In addition, it is required that any coordination
among Group companies as well as any action on importantmatters are first discussed by the Company’s Management
Meeting and Board of Directors before decisions are made.
The Company’s Audit Office conducts audits in collaboration
with the Administration Headquarters and other business units
to ensure that business activities undertaken by Group

companies meet unified standards and to confirm the appropriateness and compliance of their operations with laws andregulations as well as the Articles of Incorporation. The Officealso provides guidance for improvements in business activities.
Furthermore, Group companies submit the minutes from all
Board of Directors meetings to the Company and make monthly
reports on business activities, the status of budget implementation, and important matters relating to ensuring the appropriateness of business activities.

Efforts toward the elimination of antisocial forces
The basic position of the Kaga Electronics Group is to maintainno relationships whatsoever with antisocial forces that threaten social order and safety and to remain resolute in its refusalof all improper demands from antisocial forces as set forth in
its Fundamental Compliance Rules and Employment Rules.
In cases where the Company is subject to improper
demands from antisocial forces, the General Affairs
Department and CSR Promotion Committee work together,acting in collaboration with crisis management advisors andcompany attorneys on an as necessary basis in their efforts toensure proper and organized responses to such incidents. The
Company also holds regular discussions with company attorneys,
meets with police departments and other external specializedorganizations, and participates in training and other activities
to gather relevant information on antisocial forces.

Integrated Report 2023

34

ESG Information

Directors and Auditors
As of June 27, 2023

Directors

35

KAGA ELECTRONICS CO.,LTD.

Auditors
Representative Director,
Founder & CEO

Representative Director,
President & COO

Auditor (Full-time)

Outside Auditor

Isao Tsukamoto

Ryoichi Kado

Eiji Kawamura

Susumu Kitsunai

1968	Founded KAGA ELECTRONICS
CO., LTD.
(private management)
1968	Established KAGAELECTRONICS CO., LTD.
President
2007 	Founder & CEO
2021	Outside Director of ITbook
Holdings Co., Ltd.
(present position)
2022	Representative Director,
Founder & CEO

1980	Joined KAGA ELECTRONICS
CO., LTD.
1991	General Manager of Sales
Department, Sales
Headquarters
1995	Director, General Manager of
East Japan Sales Department,
High Tech Business Division
2002	Managing Director
2005	Senior Managing Director,
Chief of Specific Industry Sales
Headquarters
2012	Vice President
2014	President & COO
2022	Representative Director,
President & COO

1979	Joined KAGA ELECTRONICS CO., LTD.
1985	President of TAXAN (UK) LTD.
1993	General Manager of Overseas Sales
Department, Sales Headquarters No. 2
2005	Executive Officer, General Manager
of Accounting Division and General
Manager of Information Systems
Department
2012	Executive Officer Chief of
Administration Headquarters andGeneral Manager of Accounting
Division
2012	Director, Chief of Administration
Headquarters and General Manager
of Accounting Division2015	Managing Director, Head of
Administration Headquarters
2022	Director, Managing Executive Officer
Head of Administration Headquarters
2023 Auditor (Full-time)1997	Joined Tokyo Office of Tohmatsu &Co. (currently Deloitte Touche
Tohmatsu LLC)
2001	Registered as Certified Public
Accountant
2002	Opened Kitsunai Certified Public
Accountant Office as Representative(present position)
2004 	Established Asia Alliance Partner
Co., Ltd. as Representative Director(present position)2018	Auditor of KAGA ELECTRONICS CO.,LTD.
2022	Outside Director of Agent InsuranceGroup, Inc.

Outside Auditor

Outside Auditor

Yoichi Sato

Kyoko Oyanagi

1977	Assistant Judge at Tokyo District Court
1989	Judge at Tokyo District Court
1996	Judge at Tokyo High Court
2016	Admitted to the bar, Joined Alpha
Partners Law Offices(present position)2018	Auditor of KAGA ELECTRONICS CO.,LTD.
2021	Auditor of Bouygues Asia K.K.

2002	Joined Sanken Outsourcing K.K.
2004	Joined Sugata Labor Management
Office (currently Sakura
Management Office)2005	Registered as a labor and social
security attorney2006	Executive Director, Tokyo Labor
Improvement Promotion Association(Labor insurance affairs association)2016	Representative of Social Insuranceand Labor Advisors Corporation,
Sakura Management Office(present position)2020	Chairperson, Tokyo Labor
Improvement Promotion Association(Labor insurance affairs association)(present position)
2023	Auditor of KAGA ELECTRONICS CO.,LTD.

Director, Senior Managing
Executive Officer

Outside Director

Shintaro Kakei

Susumu Miyoshi

1980	Joined ITOMAN Co., Ltd.
1993	Joined KAGA ELECTRONICS CO., LTD.
2000	Division Director of Overseas
Business Division, Electronics Sales
Headquarters
2000	Director
2005	Managing Director
2014	Senior Managing Director
2022	Director, Senior Managing Executive
Officer

1963	Joined Toyota Motor Co., Ltd.
(currently Toyota Motor Corporation)
2001	Executive Vice President andRepresentative Director
2002	President of Osaka Toyopet Co., Ltd.
(currently Osaka Toyota Motor Co., Ltd.)2005	Advisor to Toyota Motor Corporation
	Chairman of Osaka Toyopet Co., Ltd.
2009	Executive Advisor to Maxell
Holdings, Ltd.
2015	Director of the Company

Outside Director

Outside Director

Akira Tamura

Noritomo Hashimoto

1970	Joined the Bank of Japan
1978	Deputy Director of the International
Finance Bureau, Ministry of Finance1998	Director of Information Systems
Department, the Bank of Japan
2008	Representative Director and Senior
Executive Officer, Sohgo Security
Services Co., Ltd. (ALSOK)2012	Advisor to Niigata Sohgo Security
Services Co., Ltd. (ALSOK) (present
position)2015	Director of the Company
2019	Outside Board Director of Solekia
Limited (present position)

1977	Joined Mitsubishi Electric
Corporation2009	Director, Chairman of theNomination Committee, Chairmanof the Compensation Committee,
Executive Officer, in charge ofGeneral Affairs, Human Resources
and Public Relations
2012	Director, Chairman of theNomination
Committee, Chairman of theCompensation Committee, SeniorVice President, in charge of Corporate
Strategic Planning and Operationsof Associated Companies
2012	Director, Member of the Nomination
Committee, Senior Vice President,
in charge of Corporate Strategic
Planning and Operations of
Associated Companies
2016	Director
2016	Advisor
2019	Director of the Company
2021	Outside Director of IBOKIN CORP.
(present position)

Executive Officers
Founder & CEO

Isao Tsukamoto

Executive Shoji Seki
OfficerPresident & COO Ryoichi Kado
Senior Managing Shintaro Kakei
Executive Officer

Representative Director,
President of KAGA SPORTS CO., LTD.

Hiroki Suzuki

President of DIGITAL MEDIA LAB., INC.

Hiroaki Maruyama

Director, Managing Executive Officer of KAGA FEI Co., Ltd.

Kazuhira Watanabe Division Director of Communication Network Sales
DivisionManaging
Motonori Toshinari
Executive Officer Mitsuhiro Nohara

Hironaga Nagasaka General Manager of Sales Strategy Office
Takahiro Urazawa

Senior Managing Director of KAGA SPORTS CO., LTD.

Katsutoshi Suzuki

Representative Director, President of KAGA DEVICES
CO., LTD.

Takeshi Tsukamoto Representative Director, Presidentof KAGA FEI Co., Ltd

Satoshi Eguchi

Representative Director, President of KAGA MICROSOLUTION CO., LTD.

Takao Okabe

Division Director of EMS Business
Division

Mitsuhiro Kumabe

Representative Director, President of KAGASOLUTION NETWORK CO., LTD.

Yasuhiro Ishihara

Head of Administration
Headquarters

Hitoshi Koujitani

General Manager of Corporate Strategy OfficeKenji Shimazaki

Managing Director of KAGA SOLUTION NETWORK
CO., LTD.

Zhen Zhou Zhu

China Supervisor

Senior Executive Mitsuhito Ikeda
OfficerPresident of EXCEL CO., LTD.

Integrated Report 2023

36

ESG Information

Together with Our Employees

Average length of service / Job turnover rate

Attrition Rate

Male(year)(%)

FemaleOverall

The most important management resource for a trading company is undoubtedly its human resources. To drive sustainable growth, we promote the development of human resources and the creation of an environment that enables
the execution of our action guideline F.Y.T (pronounced “fight”). This guideline expresses our commitment to always
be Flexible and to think and act Young when Trying to take on challenges.

15.8

15.7

12.4

15.4

14.7

14.7

16.4

12.6

14.8

14.6

14.5

15.3

13.3

14.2

13.9

making effective use of diversity in human resources and inwork style. At the same time, we respect our human resources
who continue to take on challenges and see each person as acorporate manager. With this in mind, we will keep protecting
our corporate culture of tolerating failure as a consequence of
tackling challenges.

2019/32020/32021/32023/32022/3

Number of employees (persons)Ratio of female employees (%)

Male(years)

52.8

52.4

Male

Female

53.0

51.3

52.8

7,959

8,092

6,731

7,826

3,527

4,150

3,129

3,204

2019/32020/3

6,627
3,498

4,085

4,269

3,676

3,874

3,823

2021/32022/3

8,890

7,646

2019/37,504
2020/3

8,081

41.8

37.1

2019/3(%)

Overall

19.0

2022/337.0

2020/3

42.8

38.3

44.9
42.9
38.3

45.4
43.3
39.1

1,822.5

2021/32022/32023/3

Female18.6

2023/31,800.0

11.9
2020/3

1,815.0

1,807.5

12.7
10.0
2021/32022/32.2

1.9

2020/32.0
1.7
2021/3

2.4

2.1
1.7
2022/31.6
2023/32023/3

18.4

63.1
18.7

17.0

17.8

17.9

1,025.8772.8

1,642.5

1,526.0

2019/32020/3698.9
2,778.02021/3

4,715.02022/32023/3

Number of employees who took childcare leave / Ratio of
employees reinstated following childcare leave

53.2

54.3

56.2

18.7

18.7

18.3

2021/3

1,286.2
15,151.0

1,089.3

100.0

92.9

2022/32023/3

Note: Average of all employees, excluding the number of annual paid leave days carriedover to the subsequent fiscal year

100.0

23
17

17
22

2020/3Training Cost (10,000 yen)

Number of employees (persons)Male
FemaleRatio of employees reinstated following childcare leave (%)

2019/31
2020/316
12021/3

100.0

100.0

22

19

20

19

2
2022/302023/3

Note: The above number represents the simple sum of employees who took childcare leave.

Recognized as a 2023 Certified Health & Productivity Management Outstanding Organization

2019/3

3.7

4.2

4.0

2020/32021/32022/36.1
2023/3We believe that it is essential for each and every employee to be healthy both mentally and physically, andto be a group of professionals with integrity and high corporate ethics. We have been making various
efforts toward health management, such as organizing a Health Management Promotion Committee andconducting stress checks. In recognition of these efforts, we were recognized as a 2023 Certified Health &Productivity Management Outstanding Organization.

Promotion of employees’ physical and mental health

Employee education, training and income compensation programs

KAGA ELECTRONICS CO.,LTD.

2019/3

14.6

Pursuing a comfortable working environment

39

1,807.5

Number of annual paid leave granted (days)
Utilization ratio of annual paid leave (%)

2019/3

Note: The average annual wage for the fiscal years ended March 31, 2022 and March 31,
2023 include special stock incentives.

At the Kaga Electronics Group, we support the career development of employees through training for new recruits, annual
training, rank-based training and other forms of education, as
well as by providing assistance with correspondence courses.
Every year, we grant a total of six days of paid “refresh
leave,” which is separate from annual paid leave, to all employees. We also instituted a sick leave program for those who
develop one of three specified types of serious disease (cancer,
cerebral stroke and myocardial infarction) to help them secure

2.2

Training hours (hours)

Number of annual paid leave granted /Utilization ratio of annual paid leave

57.9

66.2
2.7

2021/3

44.9
42.0

2.5

2.7
2.3

Training Hours / Training Cost

Annual prescribed working hours (hours)
Monthly average overtime work per employee (hours)

2019/3Overall

44.0

2.9

Ratio of managers

Average annual wage (thousands of yen)
Average annual salary of female employees as a percentage of total (%)

7,815

Female44.0

2023/3

Average annual wage (including bonus)

Annual prescribed working hours /Monthly average overtime work per employee

11.3
Average age of employees

OverallNote: The job turnover rate represents figures for KAGA ELECTRONICS on a non-consolidated basis
and is calculated by dividing the number of permanent employees who have resigned over thecourse of each fiscal year by the number of permanent employees at the beginning of said year.

Human resource strategy / Diversity management

Number of employees / Ratio of female employees (consolidated)

Female3.8

1.8

Implementing the idea that “everyone is a corporate manager”

As our business activities become more global and the market
environment undergoes abrupt change, diversity and taking onchallenges are keys to driving sustainable growth. This isbecause diversity enables us to look at risk as an opportunity,
and when we take on challenges we can take full advantage ofthese opportunities. To make this a reality, the Kaga
Electronics Group promotes diversity management in terms ofMaletheir income during their hospitalization and absence fromwork. Specifically, employee entitlement for paid sick leave isaccumulated in step with years of service, for a maximum of 20days. Employees are also allowed to take hourly paid leave.
Through such initiatives as these, we aim to strike a goodwork-life balance for a safer work environment for employees.
Also, in the course of responding to the COVID-19 pandemic,
we placed the utmost priority on ensuring safety and security
for our employees at home and abroad.

Training room opened in Kaga Electronics
Head Office building

With the aim of supporting the maintenance and improvement of employee healthas well as betterment of work-life balance, the Kaga Electronics Group has established its own welfare facilities. In addition to maintaining company villas in four
locations in Japan, the Company owns two cruiser boats (Yokohama and Kyoto).
Moreover, the Company provides employees with access to resorts in Japan andabroad, contract golf courses and other facilities. Furthermore, in August 2023,
we opened a training room for employees in the Kaga Electronics Head Officebuilding, equipped with the latest AI machines that can provide optimal training
tailored to each employee’s physical factors through the use of electronic tags. We
will continue to implement various health promotion initiatives so that all of ouremployees can voluntarily maintain and improve their health.

Integrated Report 2023

40

ESG Information

ESG Information

Together with Our Customers

Together with the Community

The Kaga Electronics Group proposes and provides value-added products and services that swiftly meet changes inthe times based on its corporate philosophy of “Everything we do is for our customers.” By doing so, we support thetechnological innovation and production streamlining of our customers worldwide.

Cognizant of the importance of its social responsibilities as a company, the Kaga Electronics Group contributes tosports promotion and to the local community through its business sites worldwide, and actively undertakes activities
that help drive the advancement of education, art and culture.

To deliver high-quality products and services

Contributing to the local community

Quality control system
The Kaga Electronics Group established the Production Centerin its EMS Business Division, thus enabling a system of quality
control that centers on KAGA (SHENZHEN) ELECTRONICS CO.,LTD., its flagship base for overseas production, and KAGA EMSTOWADA CO., LTD., which boast a wealth of experience in the
manufacture of in-vehicle related products. At the Center, wemanage the entire Group’s resources as cross-functional
capabilities in such areas as production technology and quality
control and promote the optimal distribution of resources andthe strengthening of technological competencies on a global basis.
The Center also liaises with production sites in China andJapan as well as countries in the ASEAN region, Europe andNorth America to advance the standardization of production
facilities, IT systems and operational processes, and the sharing of information, for example, to prevent the recurrence ofissues. Through standardization, the aim is to ensure identicalstandards, quality and customer service.

In addition, regular exchange meetings are held to reinforce
quality on a Groupwide basis.

The remote verification of inspection machines involving an active
exchange of ideas among attendees

Pursuing our philosophy of “Everything we do is for our customers”

Efforts to enhance quality
The Company’s Engineering Department controls the technological resources of the entire Group, from planning and development to design, manufacturing and quality assurance, andworks to optimize these resources, strengthen technologicalcapabilities and expand business across the organization. The
Quality Assurance Department, one of the bodies of theEngineering Department, seeks to enhance development
quality and manages safety standards throughout the Group.
This department works with other departments responsiblefor quality within the Group, depending on the circumstances,in order to resolve issues.

Prototype evaluation using a measurement device

Status of ISO9001 certification
KAGA ELECTRONICS and the following Group companies have attained ISO9000 series certification, an international standard
for quality management. The Company is striving to further enhance customer satisfaction through the continuous
improvement of its quality management system.
Japan:	KAGA ELECTRONICS CO., LTD., KAGA TECH CO., LTD., AD DEVICE CO., LTD., KAGA MICRO SOLUTION CO., LTD.,
KAGA FEI Co., Ltd., NV DEVICES CO., LTD., KAGA EMS TOWADA CO., LTD., Kyokuto Electric Co., Ltd.,KAGA TECHNO SERVICE CO., LTD.
Overseas:	KAGA (H.K.) ELECTRONICS LIMITED, KAGA (SHENZHEN) ELECTRONICS LTD., KAGA COMPONENTS (MALAYSIA) SDN.BHD.,
KAGA ELECTRONICS (THAILAND) COMPANY LIMITED, KD TEC (Czech Republic) s.r.o., SUZHOU TAXAN KAGA TRADING CO., LTD.,
KAGA TECHNOLOGY (SUZHOU) ELECTRONICS CO., LTD., KAGA ELECTRONICS INDONESIA, PT,
HUBEI KAGA ELECTRONICS LIMITED, TAXAN MEXICO, S.A. DE C.V., KAGA ELECTRONICS (VIETNAM) CO., LTD.,KD TEC TURKEY ELECTRONIK SANAYI VE TICARET LIMITED SIRKETI, KAGA ELECTRONICS INDIA PRIVATE LIMITED,KAGA FEI AMERICA, Inc., KAGA FEI EUROPE GmbH

41

KAGA ELECTRONICS CO.,LTD.

The Kaga Electronics Group,
which conducts businessactivities around the world,
takes on a variety of social contribution activities at its sites inJapan and overseas as well.
Overseas, TAXAN MEXICO
S.A. DE C.V. (United Mexican
States) conducts tree-planting
activities with students
attending nearby schools. The
plant plans to move to a newfactory in 2024 to expand its
area and number of
employees. As a multinational
company, the company also
participates in events toeliminate cultural and gender
discrimination, in addition toTree-planting activities at a nearby
school (TAXAN MEXICO)
hosting events focused on how
to avoid diversity-based
discrimination and violence.
In Japan, KAGA EMS TOWADA CO., LTD. participated in the Aomori
Smart Move Campaign, an event organized by Aomori Prefecture withthe aim of curbing global warming. This company achieved a reductionof 667 kg-CO2 during the campaign period and winning the Smart Move
Commuting Award. Moreover, KAGA EMS TOWADA CO., LTD. engages
in regular cleanup activities conducted at nearby sightseeing spots andaround the plant.
We also provide work experience training and internships for local
junior high and high school students at various locations, including
KAGA MICRO SOLUTION CO., LTD. Kyokuto Electric Co., Ltd. is also
promoting initiatives that are rooted in the local community, such as
cooking classes for the purpose of interaction between foreign national
employees working at the plant and local residents.

Plant tour for local junior high school students (KAGA EMS TOWADA)

The Smart Move Commuting Award (KAGA EMS TOWADA)

Cooking classes with neighborhood residents (Kyokuto Electric)

Supporting education and welfare
At KAGA ELECTRONICS, the Founder & CEO Isao Tsukamoto gives lectures tostudents as a specially appointed professor for the Faculty of Service Innovation,
Chiba University of Commerce. Tsukamoto speaks at such events as study
sessions for young corporate managers
who run SMEs.
In addition, the Company also contributes
to society in a wide range of fields related
to education and arts and culture, such as
co-sponsoring “The Marriage of Figaro,” aKyogen-style opera supported by the
Ministry of Foreign Affairs and other organizations, and Hamamatsu Jazz Week held
Tsukamoto lectures to students at Chiba
University of Commercein Hamamatsu City, Shizuoka Prefecture.

Hamamatsu Jazz Week

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ESG Information

Together with the Earth
The Kaga Electronics Group views the 21st century as the century for protection of the global environment and, withthis in mind, conducts business activities based on an awareness of energy and resource conservation that includes
reducing CO2 and other greenhouse gases and verifying the environmental load of the products and services it handles.

Environmental Policy
The Kaga Electronics Group looks to the future of electronics at all times, striving to meet customer needs as well as topreserve and enhance the natural environment in order to protect our irreplaceable Earth.
1

The Kaga Electronics Group shall establish an environmental management system that involves all employees and promote
ongoing improvement of this system to preserve the global environment and prevent pollution in all of our business activities toprovide products and services.

2

In executing our business activities, we shall strictly adhere to environmental laws, regulations and related requirements as wellas comply with all other requirements agreed upon by the Kaga Electronics Group.

3

We shall strive to prevent pollution and enhance the environment through non-wasteful office and business activities based on aphilosophy of conserving energy and resources.

4

We shall set targets for the following requirements to the extent possible for the products and services that the Kaga Electronics
Group handles and regularly review the progress of our activities.
• Must be composed of environmentally friendly substances• Must be able to cut waste through reuse and recycling• Must be designed with energy and resource conservation in mind using the latest electronics technology

Reduction of CO2 emissions
The KAGA ELECTRONICS Head Office building employs an air
supply type double-skin* curtain wall on the exterior, allowing
air to flow into the office, thus reducing heat load and providing
natural ventilation. The energy efficient design also provides
enhanced sound insulation. In addition, the building incorporates a variety of environmental technologies, with the use ofsolar panels on the roof enabling eco-energy and theinstallation of LED lighting throughout.
In addition, the Kaga Electronics Group began calculating
the Group’s overall electricity consumption in the fiscal year
ended March 31, 2023, which totaled 56,993,984 kWh.
Due to an increase in employees commuting to work after
the relaxation of behavioral restrictions against COVID-19
infection, both electricity consumption and CO2 emissions at
the Kaga Electronics Head Office building increased in the fiscal
year ended March 31, 2023; however, we will continue ourefforts to conserve energy and lower CO2 emissions in the future.

Power consumption and CO2 emissions at the Head
Office building
Power consumption (kWh)744,417

We shall provide education to all employees to increase their awareness of the need for environmental protection and to ensure
their understanding of our Environmental Policy.

Start of specific biodiversity conservation activities

6

Our Environmental Policy shall be disseminated widely throughout society through such means as the Kaga Electronics Groupwebsite and corporate profile.

KAGA ELECTRONICS views the 21st century as the century forprotection of the global environment and is committed toaddressing environmental issues such as the reduction of CO2
and other greenhouse gases through its business activities.
A biotope* was installed on the roof of our Head Officebuilding in an effort to preserve biodiversity and protect thenatural environment through the cultivation of living organisms
and plants, as well as to preserve species and create anenvironment conducive to their habitat.
In the future, we will conduct periodic habitat surveys of thebiotope’s organisms (about three times a year in spring,summer, and fall), as well as share information about thebiotope on our website.

The Kaga Electronics Group established an environmental
management system based on its Environmental Policy. Under
the system, environmental officers, the ISO Secretariat, theEnvironmental Manager Meeting and internal environmental
auditors team up and, guided by the president, conduct envi-

ronmental management at KAGA ELECTRONICS and its Group
companies. In addition, we have attained ISO14001 certification,
an international standard for environmental management systems, at the Company and 19 sites at four Group companies inJapan. We are strengthening our system through a PDCA cycle.

Environmental management system•KAGA ELECTRONICS CO.,LTD.
 Electronics Sales Division, Automotive Division,

Founder & CEO
President (COO)*A cohesive space in which local wildlife lives.

ISO Secretariat

Communication Network Sales Division,
EMS Business Division, Specific Industry Sales Division,
Engineering Department•KAGA DEVICES CO., LTD.

•AD DEVICE CO., LTD.

•KAGA TECH CO., LTD.

Environmental officers•KAGA SOLUTION NETWORK CO., LTD. (SOLNET Company)

Environmental Manager
Meeting
Internal environmental
auditors• KAGA ELECTRONICS CO.,LTD. Administration Headquarters Secretarial Department,

Investor Relations & Public Relations Department,
SDGs Promotion Department, Audit Office,Corporate Strategy Department, Sales Strategy Department,
General Affairs Department, Personnel Department,
Finance & Accounting Department, Information Systems Department,
Business Administration Department

Note: KAGA FEI, KAGA EMS TOWADA and EXCEL have each acquired ISO 14000 certification for their respective environmental management systems.

KAGA ELECTRONICS CO.,LTD.

677,957

CO2 emissions (kg-CO2)

821,130

601,660

281,388

256,267

2019/32020/3

667,097

227,427

252,1642021/32022/3

310,3872023/3* Double-skin technology refers to a method of construction in which part or all of abuilding exterior is covered by a two-layered double-glazed façade.

5

Environmental management system

43

Initiatives to reduce environmental burden

The biotope on the roof of our Head Office building

PC product reuse and recycling business
The Kaga Electronics Group company KAGA MICRO SOLUTION
CO., LTD. has flexibly changed and expanded its businessdomain to meet a wide range of customer demands, from thedevelopment, production and sale of electronic products totheir repair, maintenance, reuse and recycling.
The company has leveraged know-how in the production ofelectronic equipment and an extensive procurement route forelectronic parts and materials—both of which wereaccumulated in the EMS business, a strength of the Group—to
focus on a reuse and recycling business for PC products inrecent years.
In addition to “reduce programs” that look especially at
cutting CO2 and rubbish levels, the Group will contribute to a
reduction in environmental burden from a reuse and recycling
perspective and to the realization of a recycling-oriented society.

Number of PC products reused(thousands)

102.0

109.0
86.6

72.0
60.0

2019/32020/32021/32022/32023/3Integrated Report 2023

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