ContentsCorporate Philosophy

Contents / Corporate Philosophy

01

Company profile

Creating a beautiful forest,

Message from the president

02

Company outline

05[Feature Story] Eco-Friendly Product Development

comprised of many trees of varying character,rather than merely growing a single tall tree.

(1) Plant-Based Polyurethane Foam(2) Polyurethane Foam Chemical Recycling(3) Developing Cross-linked Polyethylene Foam
Recycling Technology®
(4) Carbon Fiber Recycling

In our efforts to enrich people’s lives,
we at INOAC have specialized in not only a single business,

06
07[Feature Story] CSR Activities Overseas

08
09
10

Harmony with the environment
Environmental management

11

but we have cultivated four business

Reducing our environmental footprint

13“seedlings” - polyurethane, rubber, plastics and composite materials.

Managing information on chemical materials

15

Today we have developed into a conglomerate,
supplying diverse products and services,
thereby contributing to society.

Improving value
Quality improvement efforts

16

Communication with society
Contributing to society and communities

17

Producing an employee-friendly workplace
Improving in-house systems

19

Human resource development

20

Safety and health / Disaster prevention

21

Supply chain management
Supply chain management

22

Governance & compliance01

CSR REPORT 2021

Governance

23Compliance24

Applicability of report25Company profile

Company profile

Feature Story

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & compliance

Message from the president

Helping to Achieve the Imperative ofCarbon Neutrality with Innovative
INOAC Technologies

The many trees of varying character
supporting corporate management
through COVID-19
Fiscal 2020 was a year that required action in response tochanges in the environment, as society and the economy
underwent major transitions due to the COVID-19 pandemic.
Since we at INOAC operate in many different business areas
and offer many different types of products and services
throughout the world, the pandemic impacted us in both
good ways and bad ways. In automotive-related business,orders decreased due to manufacturer shutdowns andproduction cutbacks. On the other hand, business related tohealth care and stay-at-home demand was robust. Based on
our corporate philosophy of “creating a beautiful forest,
comprised of many trees of varying character, rather thanmerely growing a single tall tree,” we were able to distributethe pandemic-related risk with our diverse business portfolio.
In production we had production cutbacks at some sites
while other sites were at near-full capacity for consecutive
days, so it was hard to coordinate personnel and other

INOAC CORPORATION
President & COO

Toyohiko Okina

resources in certain cases. However, we were able toimplement

on-siteimprovementsandproduction

automations that we could not start when orders werecontinuously robust. Our technology departments werespending less time attending to customers, so they utilizedthat extra time to focus on more technologicaldevelopment. While these changes in the environment are02

CSR REPORT 2021

Company profile

Company profile

Feature Story

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & compliance

Message from the president
likely to continue in fiscal 2021, our strength in diversifiedsocial change are also opportunities. I would like to think of thesesomething better will lead to innovation. INOAC has a history ofbusiness operations will see us through.

as chances to create the innovations of the future. These times ofcontinuous innovation in materials development from a mediumtransition to a new age are likely trying times not only for us, but

to long-term perspective based on that approach. Around 40for our customers as well. I see these current circumstances, withyears ago, although it did not turn into a commercialized productsociety’s demands changing drastically on an ongoing basis, asafter the second oil crisis subsided, we established a technology

an opportunity as a materials manufacturer to contribute to thethat uses palm oil to produce biomaterials which can serve as

growth and development of our customers and society. As analternatives to petroleum materials. We have also established andWe believe that changes will be even more turbulent than last

example, for carbon neutrality it goes without saying that wetaken over materials development operations that are essential

year in fiscal 2021. There are four key points in the external

would struggle if we were to continue manufacturing things thefor what has been known until now as “recycle & reuse,” such asenvironment that we must focus on. The first key point is theway we do now. I am telling our employees that “there is antechnology to turn polyurethane products back into raw

shortage of semiconductors, which impacts automotive-related‘industrial revolution’ in materials taking place. We cannot remainmaterials, and technology to turn scrap tires into material that canbusiness. This situation had been expected to improve inviable in this new age with our existing technologies andbe reused. New technologies and materials are not necessarily

mid-2021, but there has still been no improvement. The second

production systems.” This is because the world wants materials

accepted and put into use right away. They are undeniably

key point is the steep rise in prices of petroleum materials due towith different functionalities from what has existed until now, andsubject to the demand of the times. Still, we have emphasized

stoppages of supplies from raw materials (resin) producers

we will need to change everything in order to capture this newdevelopment with an eye toward the future, continuously

resulting from the massive cold wave that hit the US in 2021. As ofdemand. The materials industry is inherently an industry in which

innovating and taking action. Now that carbon neutrality is an

November 2021, this situation is still ongoing. The third key point

you must always innovate in order for your development to keep

imperative that must be achieved, I believe that our technologies

is the fragmentation of supply chains in Asia due to the COVID-19

up with the times. The way things are now, you also cannot hopehave truly become indispensable. With  which we havepandemic. Lockdowns have forced automakers to cut back on

to survive without taking action to deal with issues on a global

already commercialized and released, as well as  flexible

production, and products such as automotive components are

scale. I think that all of our employees, not only those in charge ofpolyurethane foam made from at least 50% plant-based raw

not being exported. The last key point is the slowdown in exports

technology but also those in materials, equipment, plants,

materials, our bedding and assistive technology tools made ofand imports (logistics) due to the shortage of containers.

management, and other sections will need to come together topolyurethane for characteristics such as elasticity and air

generate and deal with innovation.

permeability, and more, we are actively involved in addressing

Staying focused with sense of urgency in thisage of great transformation

As the automotive industry enters an age of majortransformation, how will these problems evolve going forward?
With no end to the COVID-19 pandemic in sight and the impacts
still lingering, we will stay focused and act with a sense ofurgency.

Leveraging technologies established 40years ago for carbon neutrality now
The name of our company “INOAC” originates from theComing together as a company to embrace the“industrial revolution of materials” and survive

combination of “INO” for constant innovation, with “AC” for action
to put that innovation into practical use. Innovation is not
something that can be achieved overnight. Engaging in many

Taking another perspective, turbulent external environments and03

CSR REPORT 2021

small business activities on a daily basis and refining them into flexible polyurethane foam made from plant-based raw materials

Company profile

Company profile

Feature Story

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & compliance

Message from the president
the issues of climate change and the increasingly aging societies

America. At all of our facilities in Japan and overseas we doborderless in global society, we must diligently apply ourselves,in the world. I am confident that we are building a track record asbusiness with a focus on hiring locally. And when major disasters

compete, and survive in the global arena. It has been said thata company capable of contributing to society.

have struck at our business locations, we have worked closely

absorbing global information and cultivating human resources inwith the local areas to assist reconstruction. As such, our locations

technology development are hard to do in an island nation likeare close-knit members of their respective communities which

Japan. However, at INOAC we have a deep-rooted culture ofcould even be considered to be local plants and companies.

developing global human resources, and we provide work

Social contributions locally and globally as
the foundation of our businessOur mission as a manufacturer is not just to make products,
but to consistently provide good things to the world. Starting into young employees in particular.

At INOAC we are building an even better society and fulfilling our1985, INOAC has held the World QC & Improvement Competition

Finally, since we need local employees with global mindsets

social responsibility through activities such as developing thein Japan, where successful examples of quality control activities

for the further growth of our overseas locations, we conduct

next generation of resources and engaging in business that isfrom production sites in different countries are shared andglobal human resources development not only for Japaneserooted in communities.

production, technology, and quality control initiatives are spread

employees but for all.

Since our founding we have been creating jobs rooted inthroughout the INOAC Group, based on the commitment tocommunities both in Japan and around the world. Aside from thenever allow problems to arise in the products that we create. For

Higashi-Meihan area in Japan we also operate four plant facilities

many years we have also been providing scholarships toin the Tohoku region and six in Kyushu. Overseas we have a total

outstanding students in Japan and overseas, and contributingof 41 group companies in Asia, China, and North and Central

grant money for excellent research conducted by university
Our corporate philosophy of “many trees of varying character”

resources and research that will define industry, society, and thedescribes the breadth of our business domains, and can befuture itself. Some of our scholarship students in Europe, theconsidered the source of our growth. This means that even ifAmericas, and Asia are already thriving.

some drastic change in the environment were to occur, we are

In order to develop our core business in polyurethane andForum organized by the International Polyurethane TechnologyFoundation.

always prepared either with something that can handle it or withthe capability to develop what we need to handle it.
As indicated by SDGs goal number 17 “Partnerships for theGoals,” the world needs companies that create diverse

We consider all of these activities to comprise the foundation

partnerships and contribute to a sustainable society. Workingof our business. With companies now expected to contribute

together with all of our diverse customers and suppliers as a

toward achieving the SDGs, we in the INOAC Group are confident

partner, we will double our collective efforts as a company to helpthat we will continue actively contributing to society as we havecreate a carbon neutral society.

been since our founding.
Companies are made up of the people who work for them,and the development of human resources in-house is also one ofour highest priorities. Since business and technology are becoming
CSR REPORT 2021

Pursuing sustainability with our enduring
spirit of “partnership with society”

faculty members, supporting the development of human

help to improve its value, we also sponsor the International PU

04

experience in positions of responsibility at our overseas locations

Company profile

Company profile

Feature Story

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & compliance

Company outline■ Company name■ Capital■ Representatives■ Head office
Head Office (Tokyo)

Established

Employees

1954

1,845

16 companies Asia 34 companies
North/Central America 20 companies
CSR REPORT 2021

INOAC operates in five broadly-defined categories of business.
We make people’s lives more comfortable and enjoyablein many different life scenarios, offering a wide range of products
in various markets.

171.7 billion yen

North/Central AmericaUSA
12 companies
Canada 3 companies
Mexico 5 companies(as of December 2020)

Asia
Thailand13 companies
Taiwan3 companies
Indonesia 6 companies
Vietnam
5 companies
South Korea 1 company
Singapore 3 companies
Philippines 1 company
Malaysia
1 company
Sri Lanka
1 company

Major Overseas Locations

China

INOAC Materials
for a Comfortable Life.

Sales(as of April 1, 2021)

China
Mainland China 15 companies
Hong Kong
1 company

05■ Main Businesses

INOAC CORPORATION
720 million yen
Chairman & CEO Soichi Inoue President & COO Toyohiko Okina
2-13-4 Meieki Minami, Nakamura-ku, Nagoya, Aichi 450-0003
4F Osaki West-city Bldg., 2-9-3 Osaki, Shinagawa-ku, Tokyo 141-0032

2 Automotive-Related Products
We offer products for interiors andexteriors, products for car functions,and seat-related products that help
make cars safer and morecomfortable.
3 iRC Tire
This specialist manufacturer ofmotorcycle, bicycle, and wheelchairtires and tubes is the original
founding section of the INOAC
Group.

Housing & Construction
materials
We mainly operate in housing,construction, civil engineering, andenvironment-related business.
4Domestic Locations

R&D Centers

31

Incompanies

1 High Performance Materials
INOAC operates in various fields
closely related to daily life, fromconsumer products to information
technology equipment and housingand construction materials.

4countries

5 Bedding & Furniture
We produce mattresses for a
comfortable night’s sleep, as well as
the “Smile” brand of nursing carefurnishings and the HUKLA furniture
brand.