INOAC CORPORATIONCSR REPORT 2022

Corporate Philosophy

Creating a beautiful forest,
comprised of many trees of varying character,rather than merely growing a single tall tree.
In our efforts to enrich people’s lives,
we at INOAC have specialized in not only a single business,but we have cultivated four business “seedlings”- polyurethane, rubber, plastics, and composite materials.
Today we have developed into a conglomerate,
supplying diverse products and services,
thereby contributing to society.

CONTENTS
01

Corporate Philosophy

Environment

GovernanceIntroduction

12

24

02

The history of INOAC

03

Our products

04

Message from the president

Feature Story
08

Initiatives of our Carbon
Neutrality (CN) Committee

CSR REPORT 2022

Applicability of report

Governance

ReportingperiodThis report was prepared based on the business activities of INOAC
Corporation during FY 2021 (January 1 - December 31, 2021).
* Also includes some information from FY 2020 and before, and from FY 2022.

SocialData & Statistics

Applicablescope

The business activities of INOAC Corporation on a non-consolidated basis,including certain domestic and overseas companies of the INOAC Group.

15

Improving value

26

ESG data & statistics

18

Supply chain management

27

Company outline

Year & monthissuedNovember 2022

19

Communication with society

21

Producing an employeefriendly workplace

Guidelines
for reference

 Environmental Reporting Guidelines FY 2018 Edition
 ISO 26000
 GRI Standards for sustainability reporting
2016/2018/2019/2020

Environment01

CONTENTS

Feature Story

Introduction

Environment

SocialGovernance

Data & Statistics

INOAC Group History

Expanded as a leading company in foaming technologies
for comfortable life and a sustainable society
Since our founding in 1926, we established ourselves as Japan’s first-ever producer of polyurethane foam and have goneon to create an extensive range of products and services that make people’s lives better and more comfortable.
The growth of INOAC is also a history of development. For the sake of people and the planet, we continue challenging
ourselves to generate an abundance of new usage applications, while focusing particularly in recent years on consistently
conducting environmentally-conscious development.
 Implemented
polyurethane foam
technology from
Germany (1954)

Businesshistory Entered the piping
materials business Entered the construction
materials business Established MTP Kasei
Co., Ltd.

 Established Inoue
Rubber Co., thepredecessor of INOUERUBBER CO., LTD. in
Atsuta Ward of Nagoya,Japan (1926)

 Entered the automotive
components business Started exporting IRC(Inoue Rubber Co., Ltd.)
brand tires and tubes

 Entered the bedding andchildcare products
businesses
 Established firstoverseas joint venture
Associated Rubber
Industries Ltd. in Sri
Lanka

 Established Inoue MTP
Co., Ltd. (1980)

 Entered the consumer
products business Entered the officeautomation business Changed company
name to INOAC
Corporation (1990)

 Entered the nursing
care products
businesses
 Entered the furniturebusiness Entered the distribution
materials business Entered the packaging
materials industry

 Full-scale entry intoChina

 Entered the environment
business Bolstered and expanded
locations in Southeast
Asia Held International PU
Forum 2015 for the60th anniversary of thestart of manufacturing
polyurethane foam

 Established Jinno R&D
Center in Nagoya, Aichi
Prefecture Opened retail storesfor bedding and more,primarily within
business sites
nationwide

 Established theInternational
PolyurethaneTechnology Foundation

 Full-scale entry into theUS Established INOAC
Ryukyu Co., Ltd. as thefirst subsidiary of the
INOAC Group in
Okinawa Full-scale entry into thecosmetic container
business Expanded Nagoya Head
Office and established
new company building Full-scale entry into
Southeast Asia

1920

1950
Launched Japan’s first-everproduction of polyurethane foam
Launched sales of Colorfoam
mattresses

1960
Performed on-site thermal
insulation work on tankers
and Shinkansen vehicles

1970
Developed cosmetic
bottles using injection
blow method anddecorative technology

1980
Developed in-mold coating(double-layered) integrally
molded instrument panels

1990
Developed foaming
polyurethane R-PUR method
for road construction sites

2000
Produced MAPS®
eco-friendly interconnected
fine cell polyolefin foam

2010
Produced FOLEC® cleanpolyolefin rolled sheet foamusing the supercriticalfoaming technique

2020
Produced PureCell®
eco-friendly, ultrafine cell
foam sheet with
anti-yellowing properties

2023

Developed Ecolocel®
plant-based polyurethane
foam

Producthistory

CSR REPORT 2022

02

CONTENTS

Introduction

Our products

Feature Story

Environment

SocialAA

Governance

Data & Statistics

Right there beside you, making your everyday life better.
Now and into the future.
In everything from household consumer products, nursing care products, and everyday IT devices, to industrial
machinery used in production plants.
Also in housing and construction materials, an at civil engineering worksites. Even in cars and other means oftransport, and in infrastructure facilities.
INOAC materials come in many different forms. They can be found in every aspect of the neighborhoods thatsurround us, adding comfort to our everyday lives in various fields.
Nursing careproducts

Drone propellers

Sports bra cups

Yoga matsComputerchassisMotorcycle& bicycle tires

Printer rollers

LCD backcushions

Ink absorbers

Packaging materials

Wheelchair tires

Bicycle seat pads

Bedding

Incombustible
thermal insulator

Sofas

Water-stop materials
for waterproof
mobile devices
Insoles

Storagemediums

Wheels ofloading carts

Exterior partsfor automotive

CSR REPORT 2022

Covers forfarming equipment

OOO
CCC

II
NN

Heat radiation materials
in electronic equipment
Vibration dampers
Industrial ducts
for attache cases

Crawler pads

Interior partsfor automotive

Kitchensponges

Food trays

Joint filler
in house walls
Cosmetic puffs
Cosmetic bottles

03

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Message from the president

My aim is to grow many treesof varying character—the attractive products that
benefit people in their pursuits—
to craft a beautiful forest burstingwith diversity.

President & COO
INOAC Corporation

PROFILEMar 1985 Joined Inoue MTP Co., Ltd.
(now INOAC Corporation)

Feb 1991 Assigned to North America
Feb 2004 General Manager of the Technology Department,
Automotive-related Products Division
Oct 2007 General Manager of Quality Assurance Division,
Automotive-related Products Division
Oct 2008 President, Tohoku INOAC Co., Ltd.
May 2011 Automotive-related Products Division Supervisor(stationed in Thailand)Feb 2015 Managing Director & General Manager ofAutomotive-related Products Division
Apr 2018 Director
Apr 2019 Managing Director
Apr 2022 President & COO (Current)
CSR REPORT 2022

04

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Message from the president

Assuming the role of president

raise the level of our on-site capabilities to produce goodcore business. However, we cannot expect any growth inproducts at an even lower price. Another is to strengthen ourvehicle numbers in the automotive industry going forward,

My name is Yasushi Nomura. In April of this year, our previous

technology development capabilities to evolve what weparticularly in markets such as the Japanese market. With

president & COO Toyohiko Okina passed the baton and I

produce according to what our customers and society need.

that in mind, we will leverage technologies developed in theassumed the role of president & COO of INOAC Corporation.

My approach is to elevate our producing synergisticallyautomotive industry as we focus particularly on steadily

I joined our predecessor Inoue MTP in 1985, and since then I

through two-pronged efforts both in on-site capabilities anddeveloping attractive products that also benefit people in theworked mainly in the automotive-related products business.

technology development capabilities.

field of industrial materials, including consumer products,

Going forward, we will be working as a team throughout thecompany, including to develop new products andbedding, and construction materials. I believe these will be theFields to focus our efforts

technologies with superior environmental performance.

“many trees of varying character” which will grow into a“beautiful forest” bursting with diversity.

We have three major strengths. First is our compounding

Need for horizontal connections between our
vertical organizations in different industries

Getting back to the true nature ofmanufacturing—producing

technology. We are a materials manufacturer dealing in

Put simply, the business cycle in manufacturing consists of

who was the first to introduce production of polyurethane

We do business with customers in a variety of industries. Of

procuring materials (buying), adding value to themfrom Germany to Japan in 1954. The compounding

course, every industry requires a different approach, but there(producing), and marketing them to customers (selling). The

technology developed from that is our greatest strength.

are particularly large differences between the automotive andbusiness environment surrounding such operations is

Second is our manufacturing technologies that use these

consumer products industries in terms of how to approach

becoming increasingly harsh. We are currently struggling withmaterials to give added value. Third is the global network we

stable procurement and spikes in costs due to factors

have developed through the ongoing cycle of buying,including abnormal weather, international conflict, COVID-19,

producing, and selling.

rubber, resin, polyurethane, and composites. For
polyurethane in particular, our current chairman is the pioneer

and the semiconductor shortage. If we were to pass on all of

Our corporate philosophy is to grow “many trees ofthese costs increases in the form of higher prices, we would

varying character” to craft a “beautiful forest” bursting withhave a hard time staying competitive or gaining market

diversity.

acceptance. There is importance to both the buying and

The tall tree among these is the automotive field. We haveselling functions in which we must negotiate with anotherbeen able to grow by having a presence in the automotive

party. However, since I have spent my career in positionsindustry where we have been able to leverage the threeclose to our manufacturing sites, my inclination is to focus

strengths mentioned above. This industry has been

attention and effort on the producing elements. I also thinkundergoing a period of upheaval said to occur only once

this is the quickest path to our survival.

every century characterized by keywords such as CASE and

There are two approaches to producing. One is to further
CSR REPORT 2022

MaaS over the past few years, but it will continue to be our05

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Message from the president

Repeco®

PE-LITE® AB-100F

to share information (such as assessments, purchasing

past, we used to think of normal technology and productmethods, manufacturing info, etc.) between departments.

development as separate from eco-friendly development.

One example would be interior space in cars and living

However, now eco-friendly product development throughspace in housing. Both of these involve comfort-related needs

methods that contribute to carbon neutrality is a value thatand functionality needs. For cars, there are needs forour customers and society desire, and it has become a mainelectrification. In housing there are needs for energy savings

pillar of our development efforts. We are confident that this

via thermal insulation. They also have their own respective

awareness and attitude are being instilled in each and every

needs in terms of sound (soundproofing, acousticalone of our employees.

insulation). When taking measures against sound in cars, theHere I will share an example of one such effort involving

frequencies that must be addressed in electric vehicles arepolyurethane, one of INOAC’s important materials. For a long

different from those in cars with internal combustion engines.

time, we have been recycling materials using slab material

We have been able to visualize these through analysis andcutoffs foamed within our production plants. These are being

propose the most effective measures to take. I believe that we

utilized in a large number of commercial applications, from car

can take this expertise we have accumulated and utilize it inseats to living room products and more. Most recently, weother industries such as housing. Conversely, could we also

have developed slabs with 50% bio content and released

them from the point of receiving the orders through masstake the thermal insulator compositions and methods wethem as kitchen sponges and in clothing applications. Going

production.

developed for housing and apply them for thermal insulation

forward, we aim to apply this technology and have it releasedin cars? I think possibilities such as these exist.

to the market by working to get it included in manufacturers’

In automotive, there is advance development, and design,
prototype production, and evaluation are performed—all

For materials in particular, materials development is also

designs for products such as bedding, cosmetics, andaccording to a set schedule. We also work in parallel with thisone of our strengths to which we have been dedicating efforts

automotive. Over the long-term, we would like to moveto set up mass production through production preparations

for some time. As for the technology organization to handle

forward with efforts such as chemical recycling (returningand verification events.

these matters, we are handling the head office function to

products to their original substances). Chemical recycling has

On the other hand, for consumer products people often

ensure that we do not miss out on opportunities in various

produced results at the laboratory level, but there are stilltell us they “want something right away,” or they “wantindustries, without leaning too heavily toward any one

many issues such as profitability verification and establishingsomething that feels good or soft to the touch.” Quality andparticular industry.

partnerships that must be resolved to build a massprice are important, that goes without saying, but in thesecases we need sensitivity and quick action.
It is important to accommodate the business practices ofeach of these industries. However, even if the industries areproduction system. I would like to list up each of these

Taking on environmental issues and carbon
neutrality

How I aim to make our organizations

different, we could still miss out on unseen opportunities if we

We are actively pushing forward with efforts such as productoperate our organizations in a way that does not share or try

development using biomaterials and recycled materials. In the

CSR REPORT 2022

medium- to long-term topics, verify them, and resolve them.

Once appointed as president, I thought a lot about what form
06

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Message from the presidentof governance (corporate governance and organizational

words and your smile while communicating the requirements.

communication between people will be increasingly importantmanagement) to implement going forward. As a result, I

I think that once the other person feels you are giving themin jobs that technology cannot replace (can only be performed

reached two simple conclusions.

that level of consideration, they will then accept you as aby humans).

First was that “the true nature of governance is honesty
and humility.” Do not misrepresent or hide the facts to makecolleague and cooperate with you in the true sense of theword.

INOAC’s constant theme: Innovation & Action

yourself or your own company look good. This applies bothThat is also the same at our facilities in Japan. I try to visit

when dealing with the outside world, and with colleagues in

the worksites as much as possible. When doing so, I make it

The name of our company is comprised of “Constantthe company. I also think this is connected to transparency ina point to talk to the employees there and say, “Good

innovation = INO” and “Constantly turning that into action =management.

morning! How have you been lately?” At first they might beAC.” The communication capabilities that I mentioned are keycaught off guard, but if I persist, they will greet me back andto putting that into practice. We must also strive towardshould be able to do their jobs cheerfully and joyfully.”

sometimes share their opinions about problems at thetransparency in management with honesty and humility while

Trumpeting our contributions to society because we are in theworksites. They might even tell me, “Actually, the worksite

creating workplaces where all of our employees can engage“age of CSR” and waving our flag around will not amount towould be better if we changed this.” I gave this advice on thecheerfully in their work with a sense of purpose. I would like tomuch if our employees feel no fulfillment in their daily work.

spot to someone who came up and talked to me. He put it

pursue this, while keeping things simple. If we do, I am

We first need to create workplaces where individuals and theinto practice, and his efforts ended up receiving an award asconfident that our three major strengths will successfully leadpeople they work with can enjoy their jobs.

a QC activity. I still remember how inspired I felt when he

to attractive products in different industries, and that we willhappily reported to me over the phone, “I did it. I won angrow from “many trees of varying character” into a “beautiful

award!” I have had many experiences such as this at ourforest.”The other concept I arrived at was that “working people

Communication skills are key

worksites.
Good communication is absolutely essential to making that

If we advocate human resources development in ahappen. Many people see communication as mutuallycondescending, top-down manner, we tend to ignore theexpressing opinions, or “reciprocity.” That is not wrong, but I

ideas and feelings of the people we intend to develop.

think communication all starts with “listening.”

However, I think our employees each have their own ambition

I was blessed with opportunities to work in many different

and desire for professional growth in their work. They want tocountries and regions, including in North America andbe able to deliver even more value. As an organization, I think

Southeast Asia. These international experiences taught me

we need to avoid obstructing that motivation. Instead, we

the importance of communication. If I say things like, “I camemust guide it in the right direction and give it recognition.

from Japan (where Head Office is), so you must do as I say,”Within an organization, the requirements of the company willthings will not proceed the way I expect since the people

not necessarily align with the desires of its individuals. That isthere feel like they’re being talked down to. Respect eachparticularly why communication is so important. AI and DX will

person as an individual and show that respect with yourbe deployed in more places going forward, so I think the

CSR REPORT 2022

On-site training in North America

07

CONTENTS

Feature Story

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Initiatives of the Carbon Neutrality (CN) Committee

Building the Core Organization for Initiatives
to Tackle Environmental Problems
 Organizational structure
Energy Section
Committee

Raw Materials Section
Committee(Energy Saving Committee)(Global Technology Development Division)

The CN Committee is headed by a managing director. The
administrative office working directly under the committee sets
numerical targets and handles related tasks such as
management reports and awareness-raising activities. Specificactivities are coordinated by four section committees (Energy,

Carbon Neutrality
Committee

Raw Materials, Logistics, and Departmental), each of which
has its own mission and will set (medium-term) goals for 2030,
three-year goals, single-year goals, and action plans, thenexecute them.

Logistics Section
Committee

Departmental Section
Committee(Logistics Section)(Development & Planning at Each Department)

CN Committee

Organizational chart

CN Committee

Section committees

Person in charge: Managing director
Carbon Neutrality Committee
Back row, from left: Hisao Tsuge, Naoki Tanaka, Nobuyasu Torii
Front row, from left: Nobuo Kondo, Takefumi Miura

CN Committee administrative office Background behind establishment
The dangers of climate change are now very real. One

neutrality in 2050. Concurrently with this movement,

example is frequent heavy rain damage caused by abnormal

automotive manufacturers and many of our other clients now

weather patterns brought about by global warming. In

also heavily insist on CO2 emissions reductions. For that

response, in 2015 the COP21 set out the goal of “Holding thereason, we established our Carbon Neutrality (CN) Committee

increase in the global average temperature to well below 2°C

in September 2021 to strengthen our governance toward

compared to pre-industrial levels and pursuing efforts to limit

reducing CO2 and achieving carbon neutrality. Thus began

the temperature increase to 1.5°C.” In 2021, the Government

the committee’s cross-divisional coordination function toof Japan also announced its goals of reducing CO2 emissions

engineer environmental activities throughout the INOAC

by 46% (compared to 2013) in 2030 and achieving carbon

Group.

CSR REPORT 2022

• Set medium- tolong-term term goals• Stay current on progressof section committees• Management reports• Awareness-raising
activities

Public relations

Energy Section
Committee

P9

Raw Materials
Section Committee

P10

Logistics Section
Committee

P10

Departmental Section
Committee

P11• Outside publicity about
CN activities* Scope of activities is 14 facilities in Japan and 27 related locations (including affiliates)

08

CONTENTS

Feature Story

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Initiatives of the Carbon Neutrality (CN) Committee

 Initiatives of the four section committees
CO2 emissions by year

Energy Section Committee

Scope 1

Scope 2Goal

50 emissions(tons)
100,000

Reduce scope 1 & 2 emissions by 50% in 2030
(vs. 2013: total overall emissions)

Mission Activities to reduce scope 1 & 2 CO2 emissions at each plant (case examples 01 & 02

Action Plan

This initiative began by creating a list of energy saving standards with 15 categories and 53 items. The
section committee manages score sheets for each item at 41 locations in Japan and is working to deploy
them in every department to ensure the standards are exhaustively implemented.

81,337

83,876

60,57160,45031,20329,85527,72629,939

2013

2019

2020

2021

50,000reduction
vs. 2013

53,61153,93745,88725,0000

Drafting “the Energy Saving Standards 2022 and01rolling them out to multiple departments%

90,30575,000

below)

 Promote implementation of eco-friendly parts and materials at INOAC Group
companies (INOAC Housing & Construction Materials Co., Ltd.) Considerations for usage of solar power Drafting the recommended equipment for energy saving (guidelines) andpromoting its implementation

91,7742030

02 Using thermal cameras to stop heat leakage
We are working to detect heat leakages using thermal cameras. Measures to stop heat leaks are taken
after identifying the locations of the leaks. Afterward, we conduct regular follow-up inspections.

Air leakage diagnostic

Promote usage of Thermax(thermal insulator madeby INOAC)

Comparison of photo taken with thermal camera
Heat insulation sheets to insulate heat
CSR REPORT 2022

09

CONTENTS

Feature Story

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Initiatives of the Carbon Neutrality (CN) Committee

 Initiatives of the four section committees
04 Case example of shifting to biomaterials

Raw Materials Section Committee

We developed a polyurethane material with 50% biomass. Also having successfully made it compliant
with the Food Sanitation Act, we launched it first in sponge products. Going forward, we are considering
applications and commercializations for its usage in bedding, clothing, cosmetics, and the automotive field.

Setting 2030 monitoring targets for reducing scope 3 emissions

Mission(polyurethane, resin, rubber, and paint, which comprise a significant proportion of Category 1)

 Polyurethane (slabs)
Action Plan Reduce usage volume (waste reduction, weight reduction, thickness reduction)
 Shift to material and chemical recycling for materials (case example 03 below)
 Replace with eco-friendly materials (shift from rubber to resin and biomaterials)

2050

2040

2030
• Thinner sheets• Use biomaterials as raw materials• Chemical recycling• Build cycles for recovering
products from the market• Use biomaterials
as primary raw material• Release biofoam products

Resin• Recycle material cutoffs• Implement biomass• Bolster recycling rates and shift
toward biomaterials• Expand lineup of bioproducts
and recycled products

Rubber• Switch to low-emissions raw
materials• Increase recycling rate of Gomspor• Implement usage of non-fossil
raw materials

Polyurethane

Food Sanitation Act compliant
Similar mechanical properties
as conventional products

BEH(case example 04 at right) Usage applications

Sponges

Mattresses

Pillows

Already launched

In development

In development

Coarse cell / Fine cellHigh hardness/Low hardness

Clothing products
Already launched• Establish desulfurization recycling• Expand lineup of desulfurization
recycled products

TextureCosmetics
In development
High density

High recovery / Slow recovery

Automotive
In development
Flame retardancy

03 Recycling business initiative
INOAC produces and offers olefin products and was successfully able to turn the material cutoffs thatarise in producing such products back into raw materials using a crosslink cleavage process (name ofrecycled material: Repeco®). The section committee will reduce overall usage volume of resin byincorporating a certain proportion of Repeco® in our products.

Logistics Section Committee

Application examples
Material cutoffs

Crushed powder

Additives

Recycle into PE-LITE®

Crushing
REPECO®

recycled material
cutoffs

Crosslink cleavage
Crushed powder

Illustration of the PE-LITE® recycling process

CSR REPORT 2022

Repeco®
composite
PE-LITE

Returnable box
materials forautomotive
components
Construction
material backer,
joint filler

MissionTargeting scope 3 (category 4 upstream transportation and distribution).
With 2023 as the base year, set monitoring targets for 2030 and work
to reduce CO2 emissions in logistics

Action Plan Build systems to visualize CO2 emissions in logistics
 Reduce CO2 emissions in logistics(increase loading efficiency, consider modal shifts, join client milk runs,
switch to low-emission vehicles)

10

CONTENTS

Feature Story

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Initiatives of the Carbon Neutrality (CN) Committee

 Initiatives of the four section committees

 Awareness-raising activities of the administrative office
In-house exhibitions (March, July)

Departmental Section Committee
MissionPlan and execute medium- to long-term strategies for major products

Action Plan Perform scenario analyses considering risks and opportunities on a product basis
 Execute plans that consider financial impact (sales, profit, investment) on a
product basis (case example of a commercialization 05 below)
 Coordinate with other section committees to achieve targets for scope 1 & 2 andscope 3

Case example of a05 commercialization

Temperature management system solution
The logistics industry is trending away from theusage of dry ice. Based on this, the section committee
is offering a temperature management system solutionthat combines cold storage agent and cool boxes with
operational management methods as an alternative to dry ice. The system is now in use at large logistics
companies and in business operations such as food transport and co-ops. Dedicated COVID-19 vaccine
transport box i-Medisys was also developed to expand this solution into more markets. With the ability totransport samples and specimen while keeping them between 2 and 8 degrees Celsius for 12 hours in outside
temperatures ranging between 5 and 35 degrees, orders for this box have been pouring in from local
governments throughout Japan.

Thermax high performance thermal insulator
INOAC manufactures and sells isocyanurate foam thermal insulator. It
has thermal conductivity of 0.020 W/mK and 2.3 times the heat resistancevalue of glass wool (16 kg). We also offer it in grades that have beencertified as incombustible materials by the Ministry of Land, Infrastructure,
Transport and Tourism, making it a formidable thermal insulator against
fires. Its usage applications include housing, waterproofing roofs ofbuildings, and heated pools. Since it also has superior fabricability, it isbeing deployed for uses such as drying ovens and air conditioning ducts in
production plants. Its usage is becoming more established through theactions of individuals such as automotive component salespeople inaddition to dedicated sales teams. With catalogs in hand, thesesalespeople approach affiliated clients about including Thermax in thedesigns for their production plants.
CSR REPORT 2022

As part of our internal awareness-raising
activities, “panels and actual samples” ofmaterials, products, equipment, and other items
that contribute to reducing our CO2 were
exhibited in March and July of this year alongwith presentations on the status of CN
Committee section committee activities. There
were approximately 400 overall attendees fromthe INOAC Group throughout the six total daysof the exhibitions.

New employee training (April)Workshops were held for new employees
joining us in 2022. Classroom-style lectures
were given on (1) why we must pursue carbon
neutrality, (2) numerical values that ourcustomers desire, and (3) our in-houseorganizations and activities. Then, in “panels andactual samples,” attendees were informed about
specific items at INOAC that contribute to CO2
reductions.

Message
For some time, our company has been engaged in efforts to develop
eco-friendly materials and products plus reduce CO2 emissions in our
production plants. However, we did not have the governance in place forrelated company-wide target values or cross-divisional management. In
response to the 2021 turning point in demand from society and ourcustomers for heightened efforts toward reducing CO2, we established
our CN Committee and launched its activities. We still have a mountain ofchallenges to tackle, to expand these section committee activities
overseas and to our suppliers, address the remaining categories in scope
3, and create scenarios for an eventual declaration on carbon neutrality.
Therefore, I want to stay grounded and take steady action toward our
objectives.

Motoyuki Asano

ダミー

Managing Director
Director of CN Committee

11

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Environment

Environmental management
Environmental management system

Environmental vision
INOAC respects the natural environment of ourirreplaceable earth and contributes to realizing an affluent
society that is comfortable to live in through technology
harmonized with our environment andenvironment-friendly corporate activities.

Environmental policy

In order to engage in environmental activities in an organized fashion, the Person Responsible for Environmental Management
implements integrated management related to the environment, under the direct control of top management. In addition, thecompany as a whole also engages in environmental activities under the direction of the Environment Committee. We haveorganized specific section committees to handle industrial waste and energy saving, and we coordinate environmental
management through these committees while seeking further improvements in mitigating our environmental impact. As westrengthen the connection between environmental management and our main business in managing our objectives, we are also
supporting the appropriate efforts where changes are taking place, such as newly built business locations, buildings, andproduction lines.
Environmental Preservation Promotion System(1) We observe environmental laws and regulations, thoroughly
ensure compliance, and engage in business activities that society
can trust.
(2) We work to reduce CO2 emissions such as by saving energy, tohelp achieve a carbon neutral society and prevent global
warming.
(3) We work on resource conservation, waste reduction and recycling
to contribute to a recycling-oriented society.
(4) We properly manage chemicals that could impact theenvironment and seek to preserve our environment by reducing
risk.
(5) We actively develop products with less environmental impact,
contributing to the conservation of nature throughout the life
cycles of the products.
(6) We engage in environmental management, educate employees
about the environment, implement environmental audits, andcontinue to improve.
(7) We contribute toestablishing a sustainable
society through local
environmental preservation
work as good corporate
citizens.

CSR REPORT 2022

Person Responsible
for CN Committee

CN Committee(CO 2 reduction)

Energy Section Committee
Raw Materials Section Committee

Top management

Environment Committee(ISO 14001-related)

Person Responsible
for Environmental Management

Waste Reduction Committee

Logistics Section Committee
Departmental Section Committee

Chemical Substances
Management Committee* CN: Carbon Neutrality

Internal environmental audits

External environmental examinations

We implement internal environmental audits to checkthe operational state of our environmental management
system. The audit team consists of two to three
employees who have completed the auditor trainingprescribed by the company. The team checks if theenvironmental management system is being properly
operated, maintained, and improved. We create audit
guidance and take steps such as revising checklists toemphasize efforts toward goal achievement andcompliance in order to improve the quality of the audits.

The Japan Quality Assurance Organization (JQA), an external
certification body, conducts examinations to check if ourenvironmental management system is functioning properly inaccordance with ISO 14001:2015. The majority of examinations
during FY 2021 were conducted remotely due to the pandemic. In
the results, one point for improvement was identified, but swift
corrective action was taken afterward, and we were able to renew
our certification. Also, as overall findings, some issues were raisedin terms of environmental aspects, competences and awareness,and processes such as compliance evaluations.
12

CONTENTS

Introduction

Feature Story

SocialEnvironment

Governance

Data & Statistics

Environment

Environmental management

Reducing our environmental footprint

Summary of major activities in FY 2021

Activities to reduce waste

The results of our main environmental efforts in FY 2021 are shown in the table below. In terms of reducing CO2
emissions resulting from energy use, the CN Committee took the lead in implementing various initiatives.
However, fluctuations in production volume due to factors such as world trends and the semiconductor shortage
resulted in lower production efficiency, thus we were unable to reach our targets. For industrial waste disposal, we
moved forward with efforts to reduce our volume of industrial waste disposal including in recycling and disposal ofvaluables. Our disposal of valuables is shrinking on a yearly basis, and we did not achieve the corresponding
goal. For emissions of PRTR substances, we made progress in efforts such as replacing the materials that
contain these substances. Since we are producing higher volumes of products that use PRTR substances, ouremissions of these substances also increased year-on-year.

In waste reduction, the company-wide Waste Reduction
Committee led efforts to improve our rate of productcommercialization by reducing defects and increasing yield,
and to reduce waste by reusing more material cutoffs. The
committee is working on technology to recycle cross-linked
polyethylene material cutoffs that we produce and isdeveloping a cyclical system to re-employ material cutoffs
that would normally be discarded as raw materials.
Production lines are currently being prepared for mass
production of recycled material. The committee is striving tocommercialize recycled materials and reduce waste.

Initiative
Reduce energy
consumption(in plants)
Reduce waste(in plants)

Targets in FY 2021

Achieved in FY 2021

Measured units(tons/million yen)

0.500 or less

0.5276[CO 2 emissions (tons)][81,337 (2020 result)][83,876 (2021 result)]

Measured units(tons/hundred million yen)

6.7 or less7.0

[treated amount (tons)][10,653 (2020 result)][10,814 (2021 result)]

1.97 or less

2.2 or less[286 (2020 result)][331 (2021 result)]

At least 1,298

1,722

Issuance of CSR reportIssuance of CSR report

Measured units
PRTR substances(tons/hundred million yen)reduction in release[amount emitted +and transfer amounts
amount transferred (tons)]

Environmental
proposal activities*

Number ofenvironmental
improvements

Environmental communication

Target reached* ISO 14001 targets

Not yet reached but progressing

ResultActivities to reduce the use ofenvironmentally hazardous substances
We use PRTR substances such as m-tolylene diisocyanate,a raw material for polyurethane foam, as well as xylene andtoluene which coatings contain. To reduce the amount ofthese substances handled, released, and transferred, we
have made progress in replacing dichloromethane and bis(2-ethylhexyl) phthalate plasticizer which is partially left overas foaming agent. On the other hand, we also launched new
products that use coatings containing large quantities ofthese substances, so our overall amounts handledincreased compared to the previous year. Efforts to address
water-related risks

PlantsSeino Plant Ikeda Factory
Seino Plant Ikeda 2nd Factory
Seino Plant Ohno Factory

Yana Plant
Yana 2nd Plant
Ishimaki Plant

Shinshiro Plant
Kira Plant
Toyohashi Plant

Hadano Plant
Uruma Plant

Associated companies (including affiliates)
Hokkaido INOAC
Tohoku INOAC Kogota Plant
Tohoku INOAC Wakayanagi Plant
Tohoku INOAC Kitakami Plant
Tohoku INOAC Tsukidate Plant
Higashi Nihon INOAC
Nishi Nihon INOAC

CSR REPORT 2022

Kyushu INOAC Kikuchi Plant
Kyushu INOAC Ukiha Plant
Kyushu INOAC Yukuhashi Plant
Kyushu INOAC Kitakyushu Plant
TFJ Saitama
TFJ Fukama
RIC Taketoyo

RIC Mie
HUKLA Japan
Taiyo Rika Industry Seki Plant
Daito Kasei
I-Sheet Industries
Meinan Aiko Kasei
Far East Tooling(tons)

12,000
9,300

9,000

10,166

9,671

2019

2020

10,814

6,000
3,000
0

2018

2021

PRTR (amount emitted + amount transferred) (tons)(tons)

400
300

306

320

2018

2019

301

331

200
100
0

2020

2021

Target not reached

Business locations from which environment data is collected to summarize major activities are shown below.
Anjo Plant
Sakurai Plant
Nanno Plant

Waste treatment amount (tons)

PEC Okazaki
Miyama KaseiIWFKINOAC Housing & Construction
Materials Ibigawa
INOAC Housing & Construction
Materials Ariake
Kyushu Color Foam

Efforts to address water-related risks
Since we use large volumes of water for cooling our facilities
and cleaning, we consider water to be a precious resource.
Our previous activities for water-related risks involved efforts
to address droughts, water-related disasters, waterpollution, and water regulations. For water recycling, we
recycle the water we use to clean equipment in our coatingsprocesses. As measures against water pollution, we
conduct training to prevent spills or runoffs of raw materials,
and we also monitor ground and drainage water. To reducewater usage going forward, we started conducting present
state investigations in FY 2022 and are pushing forward withactivities geared toward reductions.

Water intake (thousand m3)
Clean waterIndustrial use water

Groundwater(thousand m 3)

3,000
2,392

2,392

2,377

2,352

2,000
1,939

1,918

1,971

1,990

249
204

206
228

182
224

168
234

1,000

0

2018

2019

2020

2021

13

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Environment

Environmental risk & information management
Observing environmental laws andregulations
At INOAC, we identify environmental laws andregulations that are relevant to our business activities
and manage them on a daily basis. Through monitoring,measurement, and assessment at each plant, weprevent environmental pollution and otherwise conduct
environmental risk management to ensure that we
properly comply with laws and regulations related tonoise and industrial waste treatment as part of ourenvironmental management system. In accordance withbusiness ethics, we will continue strictly observing
environmental preservation agreements with local
governments, including environmental laws andregulations.

Major environment-related laws and regulations pertaining
to our businessAir

Air Pollution Control Act, Automobile NOx PM Law,
Act on Special Measures against Dioxins

Water quality and soil

Water Pollution Prevention Act, Purification Tank Act,
Sewerage Act, Soil Contamination Countermeasures Act

Noise, vibration & odor

Noise Regulation Act, Vibration Regulation Act,
Offensive Odor Control Act

Chemical substances

Act on Confirmation, etc. of Release Amounts of SpecificChemical Substances in the Environment and Promotionof Improvements to the Management Thereof, Poisonousand Deleterious Substances Control Act

Resource conservation& recycling

Act on the Rational Use of Energy, Act on the Promotionof Sorted Collection and Recycling of Containers andPackaging, Act on Rational Use and Appropriate
Management of Fluorocarbons, Act on Special Measuresconcerning Promotion of Proper Treatment of PCB
Wastes, Waste Management and Public Cleansing Act

Disaster prevention

Fire Service Act, High Pressure Gas Safety Act

Factory Location Act, Act on Improvement of
Pollution Prevention Systems in Specified Factories,
Radio Act* Local government ordinances are omitted* Some of the above are abbreviatedGeneral & others

Promoting IMDS, chemSHERPA and more
INOAC registers information on chemicals and reports it to our customers through IMDS*1, particularly in theautomotive field which is our main field of business. We have a management system to obtain the necessary
information via our supply chain and to register the information into IMDS.

Information collection through IMDS in INOAC – reporting process and chemical management system
Component supplier
Products

INOAC
Components list
drawings, etc.

Material supplier

In-house database
Products
Component parts
Materials
Chemical
substances

IMDS
data

Auto
manufacturer,
etc.

Materials
Chemical
substances

Creating an in-house database
The Automotive Division is creating an in-house database through which information on chemical
substances contained in parts and materials purchased from clients is identified based on information
about chemical substances, and centrally managed. This has allowed us to be certain of ourcompliance with laws and regulations on chemical substances and client requirements which increaseeach year, while also helping to improve the efficiency and the reporting accuracy of information weregister in IMDS and when examining the chemical substances contained in our products.

Establishment and implementation of green procurement criteria
We ascertain what chemical substances are regulated by laws, regulations, and by our customers,
based on which we create our green procurement criteria - a list of those chemical substances that
we should work to reduce. We present these criteria to clients and use them to obtain information on
chemical substances contained in raw materials to be purchased. We are also consistently monitoring
the latest regulatory developments, based on which we revise these criteria once each year.

Communication about chemical substance management
The Global Quality Assurance Division is acompany-wide organization forenvironmental stewardship, which organizes
and leads meetings for the chemical
substance management sections of eachdepartment once every two months. They
review green procurement criteria, check the
management system and establish orchange its operating rules, and exchange
opinions concerning the latest trends inchemical regulations, such as the REACH
regulation and RoHS Directive. They also
periodically audit the management system ineach department. We strive to maintain andimprove chemical substance management
systems that are appropriate and reliable.

H old r e

g u l a r mee t ing s
Procurement
sections
Automotive
parts sections

Global Quality
Assurance
Division

Polyurethane
products
sections

Rubberproducts
sections

Maintain and improve
management systems

Plastic
products
sections

I mp l eme n t a u di t s a t e ach o f t he s ec tion sTraining for emergencies
We also collect information and report it to our clients using the chemSHERPA format, which is widely used in
the industrial world, especially the electrical machinery industry.
*2*1 IMDS (International Material Data System): A database for transmitting and obtaining information on materials and chemicals over the Internet for the
automotive industry, which was originally developed to comply with the EU ELV*2 chemSHERPA: A unified format to transmit information on chemicals contained in products in the supply chain, which the Ministry of Economy, Tradeand Industry took the initiative in developing

CSR REPORT 2022

We identify accidents and emergencies according to the characteristics of each business facility, andperiodically conduct training to prevent and stop the spread of environmental pollution resulting fromearthquakes, fires and leakage of oils and raw materials. In 2021, disaster prevention training was
conducted at the Anjo Plant (in Aichi Prefecture) on July 21 and raw material spill prevention training
was conducted in manufacturing sections on October 22. These trainings were smaller in scale due tothe pandemic. In other facilities, training for emergencies and urgent circumstances is conducted on a
preparatory basis.

14

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Social | Improving value

Bolstering our capabilities to propose solutions that satisfy needs
The strength as our foundation
As a general manufacturer of high-performance materials—
polyurethane, rubber, and plastic—we have strength in being
able to leverage technologies and expertise built up over longyears of R&D to perform everything from materials
compositions and compounds to design and processing, allin one place. We also have the ability to conduct manydifferent types of product development that suit various needs
by combining high-performance materials with foaming andmolding technology.

Creating added value
In addition to simply dealing with our customers’ needs, we
also propose additional and improved functionality as weengage in dialogue to learn more about the usage purpose
and applications, problems, and other details. In theautomotive industry where development schedules are clearlyset, we also do what we call “front-loading.” Establishingcontact with the customer early on, we do our best to
propose our own distinctive solutions and communicate thetype of value that we can add.

TOPICS: INOAC R&D Sections
Our R&D is comprised of two sections—the section that develops our own original solutions (INOAC Technical Center Co.,
Ltd.), and the section that develops materials and products closely together with our customers (the Global Technology
Development Division). They propose what they develop to the development and sales sections of our various departments,
get them included in product designs in every industry, commercialize the results, and turn them into products.
INOAC Technical Center Co., Ltd.
Our technical center selects topics with a high degree ofnovelty that go beyond the boundaries of our existing business
entities to develop original future-oriented solutions. Human
resources are also particularly important to making that
happen. Therefore, the center also actively dedicates effort tohuman resources development. For instance, the center
actively organizes study sessions for acquiring high levels of
expertise, including opportunities to learn basic technologies
through industry-academia collaboration.

At a study session

Global Technical DivisionThis division ascertains various industry needs and conducts R&D for materials and products toaddress them. In addition to developing materials, the division also works to establish morein-depth manufacturing (developing production methods) as well as analytical and evaluation
technologies. To acquire the intellectual property rights to the results of these development efforts,
an Intellectual Property Department has been established within the division’s organization. This
group contributes to the creation of both tangible and intangible intellectual property.

Working with the automotive industry
As a company that has strong relationships with automakers,
we are focusing on industry changes such as CASE and
MaaS as priority topics. The shift to electric vehicles requires
functionalities such as weight reduction, sound absorption,
soundproofing, thermal insulation, and heat radiation.
Leveraging our strengths in compounding and foaming
CSR REPORT 2022

INOAC Technical Center Co., Ltd.

Sound-absorbing PUF mold component
containing biomaterials

technologies, we are working dedicatedly to develop productsthat automakers desire. We have also established what wecall a “Production Prep Review Panel” that handles thefunction of checking on the progress of production
preparation. For each item that they review, we strive toimprove our quality by achieving the numerical targets andmaking improvements.
15

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Social | Improving value

Creating enterprise value
Environmental initiatives

Intellectual property strategy

There is increasing demand for environmental considerations
such as the SDGs to counteract the environmental problems
spreading around us. Taking this social landscape into
consideration, we are developing products that help reduce
CO2 emissions and pushing forward with other eco-friendly
initiatives such as recycling activities and reducing resource
usage.
In product development, we launched development withbiomass levels over 50% among other efforts to shift towardplant-based raw materials as we chart a course away fromfossil fuel-based products.
In our recycling efforts, our activities in the field of material
recycling have been ongoing for many years. We are striving
to establish chemical recycling technologies with even higher
recycling rates, choosing the necessary equipment andconsidering the reaction and equipment conditions for eachdifferent material.

As an initiative to acquire patents in product development, wehave set a goal of 300 patent applications per year. In thedevelopment of our flagship products, we are also working tobolster our competitiveness by owning a concentration ofmultiple patents for each individual product.
Overseas, we are expanding the presence of our R&D
sections globally to address needs that must be met quickly. We
are also establishing a support organization in parallel with thisexpansion in order to facilitate smooth local patent applications.

Polyurethane foam

Decomposition
agent

Decomposition

Regenerated polyol
Impurities
Purification

Regenerated
polyolIllustration of the polyurethane foam chemical recycling process
CSR REPORT 2022

Bolstering development capability throughindustry-academia collaboration
We engage in joint development with universities and otherinstitutions, primarily in medium- to long-term basic
development. Taking on new perspectives and mechanisms in
more specialized fields of research enables us to bolster ourdevelopment capability. To manage progress, we hold internalbriefing sessions twice per year to verify the progress anddirection of our research. Through participation in academicpresentations, we are able to further enhance our cutting-edge
technologies while at the same time sharing our researchfindings with society.
One example of our industry-academia collaboration is“flexible aerogel” high performance thermal insulator, a productof joint development efforts with the Research Institute for
Chemical Process Technology at the National Institute ofAdvanced Industrial Science and Technology (AIST). In light ofworld trends such as carbon neutrality and the SDGs in addition
to Japan’s Top Runner Program, demand for energy saving isincreasing and superior high performance thermal insulators are
attracting greater attention. Rigid polyurethane foam andvacuum thermal insulator are well-known conventional thermal
insulators, but they both have issues with molding processability
since they are hard materials. We engaged in this joint research

Patent applications per year
(Applications)

300

280

260

245

237

(Forecast)

2021

2022

(Goal)(Goal)

300(Goal)

200

100
0

2024

2023

2025

in order to solve that problem. Devising a compound of silica
aerogel and fine cell foam, we successfully developed ahigh-performance thermal insulator with superior properties interms of thermal insulation, processability, and aging
performance.
Development of flexible aerogel high performance thermal insulator

Silica aerogel

Fine cell foam
CompoundFlexible aerogel
16

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Social | Improving value

Quality improvement efforts

FY 2022 Quality Policy
1. Practice thorough quality compliance(1) Observing laws (official accreditations & certifications)(2) Quality assurance that meets clients’ requirements

2. Receive quality awards from clients
3. Improve our quality globally(1) Develop local human resources to facilitate global businessexpansion(2) Build an INOAC global standard quality system(3) Improve quality by conducting quality assurance audits ofoverseas business entities* Audit production sites based on an INOAC global standard quality system

4. More robust quality risk management for new and criticalquality products(1) Conduct thorough quality audits for new products and ensure
quality at production launch(2) Thoroughly audit critical quality products (including officiallyaccredited & certified products)

Specific efforts
Auditing observance of official accreditations & certifications
Our products which have received official accreditations or
certifications are registered in the Global Quality Assurance Division
which is in charge of our management system for quality. We verify
whether there are any discrepancies between what is written in theapplications and the corresponding products, production
processes, and related specifications. We also periodically inspect
whether there are any discrepancies between the registeredinformation and the actual products, production processes, andrelated specifications.

For products created using new technologies, new materials, newprocesses or for new usage applications, we strive to prevent
serious quality issues in advance through audits by staff members
including our president to determine whether they are ready formarket launch.

Biomass Mark certification

Audit areas

6. Utilize IoT to streamline, reduce labor, increase precision,and reduce workforce in quality-related work

CoolEco hard cold storage agent
made with biomass plastic(1) Increase reliability by automating test work

7. Increase the reliability of products and production
processes by building measurement control systems

Basic approach
We strive to create satisfactory quality for all of our customers
by thoroughly ensuring quality compliance based on our
Quality Policy and strengthening our quality risk management.
We have implemented a comprehensive management system
based on ISO 9001 to guarantee the quality of products thatcan be used safely with confidence, and to provide products
and services that deliver satisfaction. We are also engaged inefforts to improve quality by collaborating with our customers.
CSR REPORT 2022

Audit members
President, Global Technology Development Division, Global Quality
Assurance Division, persons in charge of technology, quality
assurance, and sales in the applicable departments

Material quality, product characteristics, product performance,
structure, exterior, comparison with similar products, productsafety, production safety, quality risks

5. Prevent critical quality problems in advance by thoroughlymanaging implemented changes(1) Thoroughly manage changes in production processes resulting
from changes to materials or compositions

Quality audit of new products

Product component audit for critical quality
We guide audits of critical quality components at our production
sites in Japan and abroad to prevent any serious quality issues inadvance that could threaten the loss of social trust.

QC group activities
We have been carrying out QC (quality control) group
activities for small groups to voluntarily gather on the topic ofquality improvement since around 1965. These activities havesince expanded worldwide. Starting in fiscal 1985, INOAC has
held the World QC & Improvement Competition on a global
scale in order to share quality control activities taking placethroughout the group of companies.

Managing new materials changes
For materials changes with high risk of serious quality issues, webuild frameworks in which the Global Technology Development
Division and the persons in charge of technology and quality
assurance at the departments in charge deliberate over thechanges, and approval is given by the Global Quality Assurance
Division. We are enhancing our quality risk management by making
our management systems even stronger.

Many of our locations still conducted QC group activities infiscal 2021 even as the problems surrounding the COVID-19
pandemic continued. We spread the message about whatthese activities have achieved by selecting some particularly
outstanding examples of such activities and recording a video
about them. This video featuring eight case examples inJapan and eight overseas was recorded in three languages
was streamed worldwide.
17

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Social | Supply chain management

Supply chain management
From tackling global environmental problems as well as
problems related to human rights and labor to carbon
neutrality initiatives to combat global warming, risk
management against natural disasters, and the pursuit of asustainable society, companies are now expected to engage
in very different activities than they were in the past.
In response to these changes in the surrounding
environment, we are establishing a Basic Policy on
Procurement and Client CSR Guidelines concurrently with therevision of our Code of Conduct.

Basic Procurement Policy(1) Promotion of global procurement activities(2) Observance of laws, social codes, and internal
regulations(3) Promotion of fair, just, and sincere procurement
activities(4) Consideration for the environment and humanrights in procurement(5) Building partnerships based on trust with ourvalued suppliersSpecific efforts

Seeking sustainability in procurement

We engage in various activities through the INOAC
Partnership Assembly with 67 of our valued suppliers.
Teaming up with our clients, we engage in awareness-raising
activities such as lecture presentations on work-style reformand cybersecurity measures, activities to ascertain problems
at worksites, and activities to improve production processes.
Through participation in the QC Improvement Competition topresent results of improvement efforts and other suchactivities, we work toward mutually raising the levels of ourenterprises and achieving benefits for all sides while at thesame time developing human resources.

In order to offer products that are friendly to the environmentand our daily lives, we avoid the use of environmentallyhazardous substances in our manufacturing based on our
INOAC Green Procurement Standards. We also engage inprocurement geared toward achieving carbon neutrality.
Every year we conduct surveys to avoid the usage of conflictminerals linked to human rights abuses and discrimination as
well as raw materials and other substances obtained throughunethical practices such as forced labor.

Assembly to Address Quality Problems
We engage regularly in activities to decide on the appropriate
level of quality together with our clients while looking at theactual products.

* This Basic Procurement Policy is currently being updated

Strengthening partnerships with our valued
suppliers
In addition to conventional specifications such as quality andprice, it is now increasingly important in procurement activities
to work together with clients on efforts such as improving
labor conditions and making considerations for theenvironment. Once we have established our Client CSR
Guidelines which are currently being revised, we hope thatour partners will be receptive and prepared to engage inactivities that lead to mutual prosperity as partners—based on
greater mutual trust than ever.
CSR REPORT 2022

Observing the Subcontract Act
As part of compliance, we create a list of clients we dobusiness with in order to thoroughly ensure our observance of
the Subcontract Act (Act against Delay in Payment of
Subcontract Proceeds, Etc. to Subcontractors), and wevisualize the conditions of transactions with the clients towhom this act applies. In sections that handle purchasing
work, we establish frameworks to ensure ongoing complianceby having individual employees attend Subcontract Act
workshops and make action plans at periodical in-housetraining as part of their skills planning.
Visualizing transaction conditions
For new clients

Supplier Awards
We present awards to those clients who particularly
contributed throughout the year.

When commencing business transactions, we verify whether the
Subcontract Act applies to those transactions. Before beginning
the transaction, we exchange payment conditions (including
offsetting conditions), basic business agreements, and notices ofunit price determination with those clients. We also create lists toenable centralized management of what notifications have been
exchanged with subcontracting clients.

For existing clients
Since the Subcontract Act could become applicable totransactions when terms and conditions are changed, we manage
our ongoing Subcontract Act observance by regularly checking
transaction conditions and updating our lists accordingly.

18

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Social | Communication with society
We take various opportunities to engage in activities that build trust with society and communities.
Considering it our mission as a company to support the growth of children who are our future, we are engaged in educational and developmental activities in Japan and around the world.

Domestic social & community contribution initiatives
Contributing to communities through effective
use of material cutoffs
At Kyushu INOAC Co., Ltd., we are dedicating effort tocommunity contributions through the effective use ofpolyurethane foam material cutoffs manufactured at production
plants. Our production plants host regular workshops forchildren to make polyurethane stamps, squeeze toys,
Christmas wreaths and other fun items out of polyurethane
foam material cutoffs. We also make playground equipment forchildren to enjoy, which we donate to our clients’ on-premises
nursery schools, in addition to organizing “polyurethane parks”
at production plants. All of the playground equipment isplanned and produced in house, from “struck out” numberedbaseball pitching target grids with targets and balls made frompolyurethane foam material cutoffs, to bowling that uses
prototype plastic drink bottles, playground game sets including
polyurethane balls for “tamaire” in which children throw as
many balls into a basket goal as they can, and more. We
actively engage in these activities that prioritize time for social
interaction with people in the communities, which they also
enjoy.

CSR REPORT 2022

Supporting young musicians
As an effort to support young musicians, we held a classicalmusic concert hosted by INOAC Corporation in the Small Hallof the Suntory Hall concert facility in Tokyo. The concert was
performed together with the Tokyo Symphony Chamber
Orchestra to give young musicians an opportunity to perform
in an actual live concert. As part of our efforts to support
culture and the arts, we also allowed free invitations byadvance drawing to offer a chance to enjoy the concert tothose who normally have little exposure to classical music,
and we allowed admission to elementary school ages and up.
The audience felt relaxed and right at home at this concert
held in a relatively small hall, and they were full of praise forthe event afterward.

Providing thermal insulator to an elementary
school in Hakuba
At Hakuba Minami Elementary School in Nagano Prefecture,
we conducted a decarbonization project to reduce heating
usage and CO2 emissions by thermally insulating classrooms
to keep the rooms warm. Adding a thermal insulation designthat did not exist when the elementary school was built, we
believe that lessening impact of changes in the outside
temperature and improving energy efficiency has helped toreduce heating costs in winter, promote health, and boost
motivation for learning. INOAC supported this project andprovided Thermax polyisocyanurate foam thermal insulator
boards which were used. Sixth graders at Hakuba Minami
Elementary School also performed some of the installation
work for the thermal insulation themselves. INOAC willcontinue to actively support similar thermal insulation efforts
by providing our products.

19

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Social | Communication with society

Overseas social & community contribution initiatives
Organizing a traffic safety poster contest

Supporting vaccination programs

Supporting blind children

At Kenjou Industrial Co., Ltd. In Taiwan, we organized a traffic
safety poster contest for children from families of employees.
The contest was held to raise awareness about traffic safety
through an activity that fosters children’s artistic creativity, andparticipants entered a total of 60 posters. Cash prizes wereawarded to three of them as Awards of Excellence and toanother three as runners-up. Since the contest was held
during Taiwan’s rainy season, it helped to heighten traffic
safety awareness in households.

At INOAC Polymer Lanka (Pvt) Ltd. in Sri Lanka, we
supported a vaccination program by the Sri Lanka Ministry of
Health in the Horana BOI Zone. We offered the parking lots of
INOAC Polymer Lanka for use as a COVID-19 vaccination
center. Starting with setting up furnishings such as tables,
chairs, and supplies needed for the vaccinations, we
supported civil servants from the Ministry of Health by giving
guidance to vaccine recipients, providing meals, and more.

For many years, INOAC Interior Systems has been a sponsorof the Penrickton Center that supports blind children. The
Penrickton Center for Blind Children is a non-profit
organization that accommodates children between the agesof one and 12 who are blind and have another additional
disability and provides them with daycare and consultation
services five days per week. INOAC Interior Systems supports
programs designed to encourage their independence invarious facets of everyday life. The Penrickton Center for BlindChildren assists families, children, and specialists throughsupport services, education, and more.

CSR REPORT 2022

20

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Social | Producing an employee-friendly workplace

Diversity & inclusion
Basic approach

Project to promote employment of women

The “many trees of varying character” expressed in our Corporate
Philosophy are the very definition of diversity. Thus, our philosophy
itself could be considered the fundamentals behind our basic policy
on diversity & inclusion. We do business with respect for diversity byemploying and developing people from all walks of life, which includes
operating business overseas and actively enlisting female employees.

We enable female employees to demonstrate their skills andcapabilities, actively seeking out roles for them and creating
environments where they can contribute to the company. In our
General Employer Action Plan which was formulated based on the
Act on Promotion of Women’s Participation and Advancement in the
Workplace, we set three goals including specific numerical values for
current issues, and we are aiming to harness capabilities anddevelop careers in many different departments.
In fiscal 2021 we implemented a new system that makes it easy
to rehire personnel who resigned for personal reasons—such as
parental or caregiving responsibilities or work transfer of theirspouse—and can be immediate contributors once again. We also
conduct follow-up interviews with employees who joined as
experienced professionals and utilize what we learn from them tosolve problems in the workplace.

Global business operations
We began expanding overseas in the 1930s, and we now haveapproximately 70 overseas production plants and business facilitiesin 13 countries. In the process of doing so, we have constructed arobust global network by respecting the various values, practices,and national identities in the places where we do business andestablishing trusting relationships with the people.

Issues

Goals

1

1

Ratio of females
among all INOAC workers

Raise to 20% or higher

22

Ratio of female employees
in sales and technical roles

Raise to15% in sales roles and
7% in technical roles

3

3

Usage rate of managers’
annual paid vacation

Raise toequal usage rate as that ofgeneral employees, 54.8%

Human resource development
Basic approach
At INOAC, we advocate the philosophy that diverse human resources
are the foundation for the continued existence of the company.
Rather than specializing in one particular business, we are an entitythat contributes to society by creating a diverse range of products
and services. By respecting the individuality of each employee who
constructs these products and services, taking quick actions andmaking speedy decisions, we aim to develop human resources
capable of forming a vibrant global team with an abundance ofindividual character.

growth and to develop their subordinates. For employees themselvesto grow as professionals, they need to have dreams and visions. They
must enhance their own market value, fields of specialization, andexpertise. And for them to develop their subordinate humanresources, they need to clarify their subordinates’ targets and goals,
in addition to clarifying a road map and methods for enhancing theirmarket value and standards for their expertise. We aim to establish
human resources development that paves the way to a new era bypresenting a clear vision of the personnel that employees are
expected to become and implementing evaluation systems that
motivate them toward their own development.

Establishing a human resources system thatreflects the times

Global human resource development initiatives

Work-styles have changed along with social changes from Japan's
Showa Era that ended in 1989 and subsequent Heisei era that lasted
until early 2019 into the current Reiwa Era. We now live in an age inwhich employees each determine their own individual path. Our
vision for our new human resources system is to clarify the path andgoals required for all employees to achieve their own professional

In order to develop human resources capable of handling globalizedbusiness, we implement programs that enable an even higher level ofskills acquisition with a focus on younger employees who will drive
our future growth.
In these times of flourishing online interactions and training, theOverseas Trainee System which we launched in 2019 is producing

CSR REPORT 2022

professional growth and realizations that are unattainable in Japan byoffering employees the chance to actually go on-location, experienceand learn the culture and business practices first-hand, and receive
support from the overseas staff members during their work andtraining. Going forward, we are also considering restarting theOverseas Language Study Program which we launched in 2013 but
has been suspended due to the COVID-19 pandemic.

At a meeting during training in North America

21

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Social | Producing an employee-friendly workplace

Promoting work-life balance
We are actively working to support balance between work and family
life, to have an employee-friendly workplace and promote theadvancement of women.

Increasing our rate of annual paid vacation taken
Since fiscal 2021 we have been publishing our company goals andworking toward achieving the Japanese government’s target of atleast 70% usage of annual paid vacation days.

Company goals
All employees take at least 50% of annual paid vacation days inthe fiscal year they are allotted

Description of initiative
Create paid annual paid vacation schedules, communicate in theearly part of each month about the number of days which must be
taken, and post results on the company intranet.

Reduced work hours for childcare
Our reduced work hours for childcare had previously applied to
employees raising children up to third graders in elementary school
and allowed them to work reduced hours (six-hour days) for up to
three years. However, in fiscal 2022 we changed the applicability toinclude children up to sixth graders in elementary school andremoved the three-year restriction on duration.

Other support systems to balance work and childcare(year enacted)• Paternity leave (before 1980)• Flextime system (1990)• Regulations regarding family care leave (1990)• Happy Holiday Leave (1991)• Regulations regarding childcare leave (1992)• Regulations regarding measures for maternity health management(1998)• System for paid half days off (2000)• Family support holiday leave (2005)• Sick/injured childcare leave (2005)• Amended regulations regarding childcare leave (leave period
extension) (2005)• Family Care Leave (2010)• Regulations regarding telecommuting (2020)

Human rights

Health management

Basic approach

Basic approach

We respect the Universal Declaration of Human Rights andinternationally recognized fundamental rights of workers, and we
dedicate effort to respecting human rights without being complicit inany human rights violations such as forced labor or child labor. We
also strive to create safe, comfortable workplace environments andare engaged in making improvements to that effect throughout ourcompany by implementing measures against long work hours,
workplace harassment, and more.

In the past, employees were considered to be responsible formanaging their own health individually. However, the idea that thecompany is responsible for establishing environments where
employees can be physically and mentally healthy at work has now
become pervasive. Improving workplace environments andpromoting health make individual employees feel more motivated fortheir work, which in turn makes the workplace livelier as a whole.
With all three parties—the company, employees, and healthinsurance society—working closely together, we aim to mitigate
health risks, prevent injuries and illnesses before they occur, andbalance the business of the company with the health management of
its employees.

Guidance in rectifying long work hours
For those who have worked long hours and employees deemed tohave health concerns, we follow the guidance of industrial physicians
and take actions including having the applicable employees receive
interview-style guidance and undergo regular or comprehensive
health checkups. Additionally, when employees are deemed to haveaccumulated fatigue from working long hours, we take theappropriate steps as a company such as providing guidance fromindustrial physicians about the necessary measures to maintain theirhealth once requested by the employees.

Measures against harassment
Workplace harassment is socially unacceptable behavior thatwrongfully harms employees’ dignity. At the same time, we also
consider it a disturbance that prevents employees from harnessing
their capabilities, interferes with order and performance of duties in
the workplace, and can impact our social reputation.
We have declared zero tolerance for any type of harassment,
whether expressed verbally or by attitude, or via email, the internet, orother means, and we are making committed efforts to prevent it. In
addition, we administer an annual Power Harassment Questionnaire
for all employees, establish internal reporting systems, and organize
workshops for managers.

Health promotion initiatives
We are formulating annual schedules for the company as a whole
which include priority action items for each month. At each businessfacility, we are establishing promotion organizations, formulating
Mental Health Promotion Plans, and carrying these out. Working
together with the health insurance society, we are also promoting
employee health based on our “Three Pillars.”Three Pillars▶ Prevent illnesses before they occur

For each individual employee to be healthy and thrive for longer, it isimportant to regularly prevent illnesses before they occur as opposed
to only getting treatment after becoming ill. We provide assistance for
employees to stay healthy, including subsidies for comprehensive
health checkup costs, mental health courses, stress checks, andmore.
▶ Specific health checkups

These health checkups identify those who require health guidancefor preventing lifestyle-related diseases. For health checkup
categories, we use examination categories that can accurately
identify those who require specific health guidance, which includes
the addition of waist measurements to observe buildup of visceral fat.
▶ Specific health guidance

Those who have been identified in specific health checkups create
action plans based on guidance received from doctors, healthnurses, and registered dietitians, and make efforts to improve theirlifestyle habits.

* Flextime was changed from “with core time” to “no core time” on April 1, 2020.

CSR REPORT 2022

22

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Social | Producing an employee-friendly workplace

Safety and health / Disaster prevention
Principles and basic policy for safety

All INOAC Safety and Health Committee
meetings(1) Safety is the basis of the very existence of the company.
(2) All accidents and hazards are preventable.
(3) Safety is achieved through the awareness andresponsible actions of each employee.

As safety activities led by top management and attended by
all employees, we hold safety meetings to increase
company-wide awareness of safety, health, and disasterprevention, build organizational culture, and prevent therecurrence of accidents.
 Central Safety and Health Committee meetings: Heldfour times per year Field inspections by officers: Held twice per year Safety Practitioners Conference: Held four times per year Safety conferences: Held once per year
 Organizing safety presentations by outside instructors:
Held once per year Safety and Health Committee meeting at each location:
Held monthly

Based on the safety principles, we prioritize safety above all—and
this is demonstrated through action. When a risk becomes known,
our established practice is to “stop it, call it in, and wait.” Our yearly
activity plans include activities organized by the Ministry of Health,Labour and Welfare and monthly activities that past disasters havetaught us to be of critical importance. We strive to improve the safety,
health, and disaster prevention levels at all of our locations byconducting repeated training and improving any weaknesses we findin our safety, health, and disaster prevention assessments.

KPIs• Total employee occupational
accidents (including no lost
worktime)• Total accident frequency rate
• Total lost-worktime accident
frequency rate
-30% from previous year

• Severe employee
occupational accidents 0• Fires at businessfacilities 0• Having no more administrativeclassification III work
environments at worksites

Applicable
scope

2021
result22
Field safety inspection by top management

Japan

1.68
0.76

Overseas

16

Japan

0

Overseas

0

Japan

0

Overseas

0Japan

6 worksites

Developing safety-conscious workers
with the Safety Dojo
The Safety Dojo lets employees experience potential work
hazards in safe settings using 15 simulators that enable
them to see, hear, and feel the hazards. The experience
helps to build workplaces capable of achieving thezero-disaster standard by making employees more sensitive
to potential hazards, training their ability to predict them,and building habits in safe work practices. We also
introduced a virtual
reality (VR) systemand bring VR
equipment to eachlocation for on-site
interactive safety
training.
Safety Dojo

CSR REPORT 2022

Initiatives for healthier environments
Managers are improving their skills andknowledge through initiatives that enable them tolead by example.
 Establishing outdoor smoking space to ensure
separation of smoking areas
Heat insulating pavement
 Taking environmental measures to reduce road(reducing road surface temperaturesurface temperature and lowering temperaturesby reflecting infrared rays)
inside plants via the Thermax ceiling cover method,
thermal insulation for furnaces, and more
 Organizing learning sessions and trainings byindustrial physicians and the health insurance
society Taking measures against heatstroke and extreme
heat, creating Wet Bulb Globe Temperature (WBGT)
Thermal insulation for furnaces
visualizations, and systematically improving
workplace environments
 Improving work environments and having no moreadministrative classification III (noise, organic &specified chemical substances, etc.) worksites
 Measures to prevent the spread of COVID-19• Implementing body temperature checking systems
at entrances
Body temperature checking• Arranging partitions in meeting rooms andsystem at entrances
discussion areas• Allocating CO2 measurement devices, air purifiers, and sanitizer liquid

Disaster prevention activities
We take action according to our Crisis Management Regulations to minimize
damage by natural and other disasters, execute accurate first responses, andensure early recovery.
 Large earthquakes• Measures to alleviate earthquake damage to buildings and facilities• Safety and disaster prevention equipment and stockpiles for earthquakes• Post-earthquake response• Stockpile of mattresses and other items to contribute to the community
 Measures against fires, storms, and floods• Prevention of fires and explosions at production sites• Preparedness and systems for dealing with storm and flood damage• Establishment of a weather information distribution system
 Disaster prevention education• Utilizing the Disaster Prevention Training Center andperforming disaster prevention training at worksites
 Disaster prevention agreements with local communities• Providing supplies such as water and mattresses
when disasters occur• Organizing disaster prevention events and participating
in disaster prevention training together with local
communities
Disaster Prevention Training Center

23

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

GovernanceCorporate governance
Basic approach

introduced an executive officer system. Each executive officer,
endowed with his/her own authority from the Board, acts as
the head of the department, group company or major
functional organization to speed up decision-making, optimize
business operations, and handle critical business execution.
For our auditing function, we have a Board of Auditors
composed of three company auditors including two external
auditors. The company auditors attend important meetings
such as board meetings and audit the execution of duties by
the directors by inquiring about the status of their business
operations.

We consider the improvement of corporate governance to bea key business issue for raising our performance, value, andsocial credibility.

Corporate governance structure
Our Board of Directors comprised of eight members makes
decisions on key issues in INOAC’s business. Each board
member reports the execution, financial, and performancestatuses of his/her division, based on which the Board
supervises and controls the business execution of thecompany. In order to also separate supervisory andexecutional responsibilities in management, INOAC has

Internal control system
We are implementing various measures to ensure that wecomply with applicable laws as well as the company’s articles
of incorporation in our business execution. For information
management, we determine the responsible department orsection and storage period for each document according to
our Document Control Procedure. The Executive
Management Committee controls risk management, andCrisis Management Committee meetings are held when acrisis occurs.
For associated and affiliated companies we haveestablished our Governance Rules for Associated Companies.
We also clarify rules for business operations and conductboth operational and accounting audits as needed.

Corporate governance structure (organizational structure)

Appointment and dismissal

Accounting auditor

Business execution structure

Board of Directors
Chief Compliance Officer (CCO)

President & COO

Compliance Office & Compliance Officers

Business
execution

Executive
officers

Crisis Management
Committee

Supervise

Business
Auditors’ Office* When a crisis occurs

MonitorAccounting audit

Appointment and dismissal

Business units

Associated/affiliatedgroup companies

Cooperation

Audit
Internal audit

Board of Auditors(including outside company auditors)

Shareholders’ meeting

Appointment and dismissal

Cooperation

CSR REPORT 2022

24

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

GovernanceCompliance
Basic approach
In order for INOAC to satisfy its corporate social
responsibilities and expectations from customers, it is notenough to simply observe the applicable laws. Employees
must also recognize their social responsibilities as part of thecorporation. We strive to implement thorough compliance that
goes beyond simply defining a company policy and observing
the applicable laws by also holding each individual employee
to high ethical standards in their actions.

Information Security Committee establishedCompliance organizational chart
Board of Directors
Appointment and dismissal
Compliance organization
Chief Compliance Officer (CCO)
ReportImplementation system
With authority independent of our directors and executive
officers, our Chief Compliance Officer (CCO) runs theCompliance Office, taking measures and actions forcompliance-related matters. Additionally, we have complianceofficers deployed in each region and department in Japanand overseas who implement compliance activities whilefinding ways to strengthen their overall global coordination.
If any compliance violations arise, the CCO directs theCompliance Office as the person in charge of the response.
The CCO establishes a task force at Head Office to address
the violation in a centralized manner according to the level ofimpact.
We continuously improve the program that determines ourcompliance organization through revisions made regularly by
the CCO. Once per year, we also convene all the complianceofficers to hold a Global Compliance Evaluation Conference.

Compliance OfficeCompliance officers in each region & department

Activities
 Implement countermeasures to reduce occurrences of cyber incidents
 Build systems capable of responding quickly to address cyberincidents when they occur
 Accommodate Cyber Security Guidelines Ver. 2.0 and various
guidelines set out by customers

Goals
Compliance control

Specific initiatives
Compliance training
We are incorporating compliance portions into the regulartraining conducted at major intervals in all employees’ careers(training for new employees, employees hired mid-career,overseas assignment candidates, and those handling corefunctions). In addition, we conduct separate compliancetrainings according to the characteristics of each region anddepartment.

Whistle-blowing system
We have established a whistle-blowing system to enable
everyone who works for or with our company to consult orreport matters involving compliance violations that have or might
have occurred. Our whistle-blowing system connects bothinternally (to the Compliance Office) and externally (to a law firm).

CSR REPORT 2022

We established our Information Security Committee in
September 2022 in order to operate properly in line with our
Confidentiality Management Regulations and to further
improve our management of information. The aim of ouractivities is to implement these globally throughout ourorganizations as we also work to reduce occurrences of cyberincidents and put response measures in place.

(* Within the duration of our security specialist vendor agreement from September 2022 to January 2023)

 Visualize the issues to achieving 90% of the LV1 & LV2 categories ofCyber Security Guidelines 2.0 and how to deal with them, along withthe main departments involved, deadlines, and amounts of investments(as needed) by December 2022
 Formulate the flow of steps to responses when cyber incidents occur

Information security management structure(in normal circumstances)
Board members (Management)
Chief Information Security Officer (CISO)
Information Security Committee
Members of Information
Security Committee
Person responsiblefor department/section &core members of current
confidentiality management project

Director of the Information
Security Committee’s
administrative office
Administrative office
IT Division, Operations Group,
Security Team

25

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

ESG statistics

Environment

Social2018

Energy consumption

2021

2018

3,894

3,778

2,891

2,997

Natural gas(x 1,000 m3N)

939

816

800

945

Petroleum(x 1,000 kg)

5,708

5,932

6,036

6,570

123,678

125,753

120,162

124,52190,43790,305

81,337

83,876

Scope 1 (tons)

29,77429,85527,72629,939

Scope 2 (tons)

60,66360,44953,61153,937

306

320

301

331

Clean water(x 1,000 m3)

204

228

224

234

Industrial water(x 1,000 m3)

249

206

182

168

Well water(x 1,000 m3)

1,939

1,918

1,971

1,990

Amount generated(tons)

9,300

10,166

9,671

10,814

PRTR (handled & emitted) (tons)

Water intake

Industrial waste

2020

Heavy oil (kL)Power purchased (x 1,000 kWh)

CO2 emissions (tons)

2019* Applicable scope: 14 facilities in Japan and 27 related locations (including affiliates)

Employee-related
data

2019

2020

Human resource
development

Members of Board of Directors

10

10

9

8

Compliance

Compliance training participants

−

−

271

361

Information security training
participants

82

87

57

1,034

Severe incidents

0

0

0

0
Occupationalsafety & healthinitiatives

2020

2021

1,853

1,903

1,884

Male

1,544

1,628

1,642

1,590

Female

201

225

261

294

54

45

52

46

Male

42

34

31

31

Female

12

11

21

15

42.9

41.9

41.6

41.6

Male

43.2

42.3

42.3

42.3

Female

40.6

39.3

37.8

37.7

5.5

4.7

6.0

6.0

37,892

25,562

18,60826,023

Average training hours per year
(hours/person)

20.7

19

12.9

13.2

Ratio of female employees (%)

12

12

14

16

Ratio of female managers (%)

2.8

3.2

3.2

4.3

Ratio of persons with disabilities
employed (%)

2.39

2.30

2.28

2.36

4

3

11

9

0

0

1

4

Ratio of paid vacation taken (%)

47.3

53.0

52.9

64.2

Average monthly hours of overtime
work per person

18.06

17.48

19.51

19.69

Members of labor union

1,417

1,486

1,491

1,481

Lost-worktime accident frequency
rate (%)*

0.60

0.82

0.44

0.76

Health checkup screening rate (%)

96.1

99.9

100

100

Stress check screening rate (%)

86.1

90.1

93.9

94.6

Participants in occupational safety& health-related training*

536

446

350

339

Total training hours

Number who tookchildcare leave
Producing an
employee-friendly
workplace

2019

1,745

Turnover rate (%)

2021

Board of Directors

New graduate
recruits

Average age(years)(Non-consolidated)

2018

Information
security

Employees

Promotingdiversity

Governance(Non-consolidated)of whom are
male* Includes associated companies in JapanCSR REPORT 2022

26

CONTENTS

Introduction

Feature Story

Environment

SocialGovernance

Data & Statistics

Company outline▶ Company name▶ Capital▶ Representatives▶ Head Office

INOAC CORPORATION
720 million yen
Chairman Soichi Inoue

President & COO Yasushi Nomura

2-13-4 Meieki Minami, Nakamura-ku, Nagoya, Aichi 450-0003
Head
Office(Tokyo)▶
4F Osaki West-city Bldg., 2-9-3 Osaki, Shinagawa-ku, Tokyo 141-0032▶ Established▶ Employees▶ Sales

1954
1,846 (as of April 1, 2022)
176.3 billion yen (as of December 2021)

Ratio of domestic sales comprised by each business

Automotive

2018

58%

42%

2019

59%

2020

56%

2021

58%
0

500

High performance materials

1,824
1,894

41%

1,717

44%

1,763

42%
1,000

1,500

2,000 (Hundred million yen)

▶ Main Businesses

INOAC Materials
for a Comfortable Life.

Major Group companies in JapanINOAC operates in five broadly-defined categories of business.

30

We make people’s lives more comfortable and enjoyable in many different
life scenarios, offering a wide range of products in various markets.

High Performance Materials
Operating in various fields closely
related to daily life, from consumer
products to information technology
equipment and housing andconstruction materials.
2 Automotive-related Products
Offering products for interiors andexteriors, products for car functions,and seat-related products that help
make cars safer and more comfortable.
1

3

4

5

iRC Tire
This specialist manufacturer ofmotorcycle, bicycle, and wheelchair tires
and tubes is the original founding
section of the INOAC Group.
Housing & Construction
Materials
Operating mainly in housing,construction, civil engineering, andenvironment-related business.
Bedding & Furniture
Producing Colorfoam bedding for a
comfortable night’s sleep, as well as
Smile nursing care furnishings, andHUKLA furniture.

CSR REPORT 2022

R&D locations

in

4 countries

Japan, USA,
China, Thailand

North/Central AmericaUSA
13 companies
Canada 3 companies
Mexico5 companies

China
Mainland China 16 companies
Hong Kong
1 company

Asia
ThailandTaiwanIndonesia
VietnamSouth Korea
Singapore
Philippines
Malaysia
Sri Lanka

13 companies
3 companies
5 companies
4 companies
1 company
3 companies
1 company
1 company
1 company

Ratio of global sales by region
China

17%

Japan

2021

37%

Total:

Major Group companies overseas

70

China 17 companies Asia 32 companies

North/Central America 21 companies

Asia

25%

543.4

billion yen
North America

21%

27

[Inquiries]

PR Department, Corporate Planning Division
4F Osaki West-city Bldg., 2-9-3 Osaki, Shinagawa-ku, Tokyo 141-0032
Phone: 03-6680-8168 E-mail: csr@inoac.co.jp

ht tps://w w w.inoac.co.jp/