Approach to Value Creation

The Story of Value Creation at the FDK Group

Approach to Value Creation

Customer satisfaction

In continually addressing seven prioritized initiatives based on the FDK Group CSR Policy, the Group engages in management as a responsible global corporate citizen. The FDK Group provides unique value to all of its stakeholders, helping to resolve social issues through thedevelopment and supply of batteries, power storage systems, and electronic devices based on the core technologies FDK has cultivated up
until now.

Issues and Capital

2022 Business Model ~Smart Energy Partner~

ies

g in

t er

FDK’s core technologies

En
in g

B at

Power electronics technology

eer• Sharp rising in labor costs atoverseas manufacturing base

And Game

Circuit technology• Market maturity and change ofmarket structure

Opportunities

Ultra-fine printing technology• Legislation to promoteenergy-saving policy

High-density mounting technology• Enlarging demand to in-vehicle
telematics appliance

CAE technology
Electrochemical
technology

Invested Capital• Elevator• Emergency-response
vending machine• Multifunction printer(copy/fax)• Power storage system• Computer mice
• Computer• Emergency lighting• Sensors• Communications basestations• Mobile phone basestation• Data centers• Railway backup• Ni-MH batteries• Lithium batteries• Alkaline batteries• Power storage
system• Toner• Various modules

Risks
In Medical and Welfare Sites!

Materials
technology• Bedside monitor• Intellectual capital• Electric wheelchair• Infusion pump

• Manufacturing capital• Human capital

Electronics• Finance capital• Social and relationship capital• Ni-MH batteries• Alkaline batteries• Lithium batteries• Various modules• Natural capital

In Homes!

Strategy●

Mid-Term Business Plan

FDK Group: FDK Group Corporate Conduct Guidelines
Fujitsu Group: FUJITSU Way

5

FDK GROUP CSR REPORT 2022●

Philosophy

Strategic Direction

Vision●Ideal Form

Standards

Code

The FDK Value Chain

and(do it all)

CSR Management• Smoke detector• Smart meter• LED light• Automobile• Cordless telephone• Toy• Smartphone charger• Credit card
• Wrist watch• Remote controls• Liquid crystal display(LCDs)• Beauty & health devices• Flashlights• Ni-MH batteries• Alkaline batteries• Lithium batteries• Various modules

Seven Prioritized Initiatives

Responsibilities to employees

Contributions to society

FDK’s new culture required to execute plan

SDGs Emphasized by the FDK GroupIn Social Infrastructure
and Businesses!

• Growing awareness of CSR• Sudden changes in the price of
natural resources

Promises to shareholders

OutputSocial Issues• Importance of product quality
and management quality

Mid-Term Business Planand Materialities

Stakeholders• Innovate energy consumption• Power storage and improve
efficiency of energy consumption

Customers• Innovate new technologies
and processes• Save resources and energy

Suppliers• Ensure quality as a manufacturer• Innovate recycling processes• Conserve resources and reduce
waste and emissions• Reduce CO2• Execute measures against disasters• Execute measures of prevention/
reduction disaster

The FDK Group Vision is “FDK Group would likeour customers to best utilize electric energy ina safe and efficient manner, and contribute tomaterialization and development of sustainable
society”. The FDK Group makes contributions
through the batteries, power storage systems andelectronic devices provided thanks to its proprietary technologies in addition to the production
processes, such as improving power storage byusing renewable energy, enhancing energy efficiency and resource efficiency, conserving theenvironment such as reducing CO2 emissions,improving infrastructure, and strengthening security measures. FDK has defined the above four
SDGs to emphasize as the FDK Group, including
social issues that FDK can help resolve throughits existing technologies and products in addition
to potential contributions through new businessmeasures and actions in the future.

Shareholders/
Investors

Employees

Global Society/Local
Communities

FDK considers customers, suppliers, shareholders, investors, employees, global society, andlocal communities to be
its primary stakeholders.
By continuing to provide value to all of the
stakeholders throughthe business activities,
FDK will contribute to thesustainable developmentof society.

FDK GROUP CSR REPORT 2022

6

Approach to Value Creation

The Story of Value Creation at the FDK GroupOur Mid-Term Business Plan

Mid-Term Business Planand Materialities

The FDK Value Chain

CSR Management

Seven Prioritized Initiatives

Vision and Ideal Form

Information on the FDK Group Strategy Framework 10 years’ scheme and
Mid Term Business Plan “R1”Overall Direction of R1
In pursuit of our vision and ideal form, by FY2022, the FDK Group will
1) Stabilize our current business and establish profitable growth, 2) Proactively develop new businesses that will lead to the next generation,
3) Work to cultivate a corporate culture in which every employee strives independently to satisfy customers

The FDK Group has formulated and developed “Mid-Term Business Plan 1618” as a means to strengthen our foundational business which has returned todeveloping materials focusing on powders, and to improve our presence as an “Leader in Energy Management Systems Across Multiple Platforms” throughproviding products that make use of battery and electronic business synergies to the industrial and consumer markets.
The development to differentiate ourselves from our competitors has worked to develop high energy density cathode materials for small all-solid-state
SMD batteries, to establish sample specifications, and to develop batteries with wide temperature, high capacity, and long-life characteristics. Although
we strove to develop small modules with high-density characteristics, fiercer competition and stagnation in the market significantly diverged results frominitial plans.
In order for us to strengthen our business structure and improve our corporate value, we need to brush up on our vision for FDK Group and meet the
expectation of our various stakeholders. Toward that end, we have formulated 10 years’ scheme as our ideal form in ten years now, and the Mid TermBusiness Plan “R1”, which covers what needs to be done during the first three years of this period.

R1(FY2020-22)

R2(FY2023-25)

R3(FY2026-28)

R1 Business Portfolio• Stabilize the Ni-MH and lithium battery businesses as two business pillars• Alkaline batteries• Strengthen engineering capabilities• Lithium batteries• Revitalize the electronics business via• Power Management Solutions

To cultivate new industries

To grow with profit

as well as spearhead co-creation with

10 Years from Now(FY2029)

Engineering

Electronics

Utilize management resources

To establish a new business model

7

FDK GROUP CSR REPORT 2022

Expansion of new applications
including In-vehicle accessories,
as a second pillar of earnings

Alkaline batteries

Engineering

To strengthen domestic
add-value business
Revitalize Brand value

To strengthen automotive
industry businessTo support internal engineering

Electronics businessTowards new growth

To increase business value
To explore new concept

Ramp-up/Seeding

New Business
Next Generation
Batteries Solutions
Co-Creation

Stabilize Current Business and Establish Profitable Growth

Products

TopicsProgress

Ni-MH batteries

Top pillar of earnings underpinned by five other pillars (homeappliances, in-vehicle accessories, power back-up systems,
mobility, and social infrastructure)

Started mass production of new products for in-vehicle accessories and sales of battery systems to the transportation infrastructure market. Further sales expansion underway, including shipment of evaluation samples for security equipment, large servers/
storage, and other backup equipment.

Lithium batteries

Expand new applications, including in-vehicle accessories;
secondary pillar of earnings

Expanded the lineup of batteries with long-term reliability and promoted the development of high-capacity models. Expanded
new business for the IoT and meter markets. As announced in the March 2022 press release, aimed to further expand sales by
consolidating the production system from two production bases into one

Alkali batteries

Strengthen domestic added-value business.
Revitalize brand value

Through an integrated production and sales system, promoted the acquisition of new business and cultivation of business in ourcore domestic sales markets. Strengthened collaboration with other companies in the industry in Japan. Development of highvalue-added products to strengthen competitiveness currently underway

Engineering

Strengthen automotive industry business.
Support internal engineering

Worked to expand sales in the factory automation industry by combining existing mechatronics technology with new technologies
such as AI as a further strength. Efforts underway to strengthen penetration into growth areas, develop new products, andacquire business in new areas

Electronic Business

Increase business value.
Explore new concepts

Continued selection and focus on each product model. Focused on new business acquisition linked to various modules for mobility applications, switching power supplies for semiconductor equipment applications, and all-solid-state batteries

Batteries

Next Generation Batteries

Lithium batteries

Ni-MH
Top pillar of earnings
underpinned by five other pillars

partners

Team up for development

To ramp-up volume• Engineering• Launch and develop new businesses

Strengthen engineering

Batteries• Next Generation Batteries

new business concepts to foster growth

ProgressEngineering• Ni-MH batteries• Revitalize the alkaline battery business and reestablish brand value

Power Management Solutions
Progress

Proactively Develop New Businesses That Will Lead to the Next Generation

Products

TopicsProgress

All-solid-state batteries

Start of mass production: FY2020 Q3

In December 2020, established a production system in our Kosai Plant. Focused on shipping samples for evaluation in preparation for the start of mass
production and establishing specifications to meet customer requirements

Nickel-zinc batteries

Start of mass production: FY2022

Under development for use as an alternative to lead batteries. Started shipment of samples to specific customers. Self-discharge and low-temperature,high-power discharge performance was confirmed to be better than lead batteries.
Focused on establishing specifications for each application

Metal-hydride/air
secondary batteries

Field tests: FY2022

Demonstration tests simulating solar power generation with 1.2-kWh power storage modules started in February 2022. Activities to propose solutions tocustomers and development to improve cost competitiveness ongoing.

FDK GROUP CSR REPORT 2022

8

Approach to Value Creation

The Story of Value Creation at the FDK Group

Materialities

Mid-Term Business Planand Materialities

Seven Prioritized Initiatives

2 Coexistence with theglobal environment

4 Sustainable

Importance to society

enhancementof corporate
governance

5 Contribution to the sustainability

In identifying materialities for the FDK Group, we established an

STEP 1

Setting Out the Social Issues

Materialities

S ocial issues are listed by the Sustainability Promotion Preparatory
Committee
The relevance of the listed social issues to our Group is considered,and discussions are held to select them

1

Provision of safe andreliable electric energy

2

Coexistence with the global
environment●

members identified social issues and then evaluated each candidate●

materiality from the viewpoint of its importance to the Group and its
at management meetings and other forums.

reliable electric energy

resources

Importance to the company

internal “Sustainability Promotion Preparatory Committee,” whose

stakeholders. Five materialities were identified based on discussions

1 Provision of safe and3 Promotion of diverse humanof local communities and society

The Materiality Identification Process

STEP 2

Producing the Materiality Map●

From FY2022, we will set KPIs for each materiality and implement
initiatives for each business division, etc. accordingly.

●

STEP 3

STEP 4A 5-point scale is used to rate the importance of each of the identifiedsocial issues from an internal and societal perspective
The evaluation results are mapped on graphs to examine levels ofimportance and confirm the positioning of priority issues

Validation●T he Sustainability Promotion Preparatory Committee members examine priority issues for the company from multiple perspectives ineach field3

Promotion of diverse humanresources

Identifying Materialities●

Materiality measures for the company

●

●
●
●

●

●

●

 ateriality issues for the group are determined at management meetM
ings and in the Sustainability Promotion Committee

4

Sustainable enhancement ofcorporate governance

The Social Issue Identification Process●●●

Keywords relating to sustainability extracted

Social issues listed

Social issues selectedSustainability Promotion Preparatory Committee

Relevant social issues are listed

1,496 keywords

based on the extracted keywords

19 candidate social
issues extracted
based on their relevance tothe company

FDK GROUP CSR REPORT 2022

CSR Management

The FDK Group’s 5 Materialities (Prioritized Issues)

The FDK Group has newly identified five materialities in order to realize the Group’s philosophy of “Inspiring transformation; shaping thefuture and creating happiness,” and the Group’s vision, “ FDK Group, as a Smart Energy Partner, assemble advanced technologies, would
like our customers to best utilize electric energy in a safe and efficient manner, and contribute to materialization and development of sustainable society.”
Through its business activities, the Group aims to realize the five materialities it has identified and to achieve sustainable development ofsociety and enhancement of its corporate value.

9

The FDK Value Chain

Impacts
ascertained
Company
Society

5

Contribution to the sustainability of
local communities and society●

Provide products and solutions that support a sustainable society

ESG category

Relevant SDGs

E・S

P romotion of a recycling-oriented society
Measures to address climate changeContribution to the global environmentE reate an environment in which employees demonstrate theirCcapabilities to the fullest
Create an environment conducive to continued work in good healthS

S trengthen systems and supervisory functions to ensure prompt
decision-making with management transparency and objectivity,
taking into account the positions of stakeholders
Strengthen the foundation of the risk compliance system
Strengthen internal company controlsEnsure compliance with laws, regulations, and social norms andconduct with high ethical standards

GConnect with local communities to create a world full of smiles

S

FDK GROUP CSR REPORT 2022

10

Approach to Value Creation

The Story of Value Creation at the FDK GroupThe FDK Value Chain
Development & Engineering

Procurement

Mid-Term Business Planand Materialities

The FDK Value Chain

CSR Management

Seven Prioritized Initiatives

Providing Safe, Secure Products with Consideration
for the Environment
Manufacturing

Sales

Distribution

Principles
Inspiring• We break through stereotypes and ourown shell.
• We flexibly respond to the everchanging, diverse world.

Transformation• We are not to afraid taking challenges,
have the courage to take one step
forward.

Opportunities• Product development that takeadvantage of ecosystems• Promotion of green procurement
and CSR procurement• Development of products that
contribute to the materializationand development of a sustainable
society• Establishment of partnerships
with suppliers in the field of CSR
procurement• Conflict mineral management• Fair dealings• Establishment of a quality
management system to ensure
product quality• Pursuit of customer satisfaction• Provision of quality that customers
can rely on• Fair dealings• Promotion of sales ofenvironmentally friendly products• Promotion of environmentallyfriendly distribution• Compliance with all export-related
laws and regulations• Promotion of occupational healthand safety activities• We create an organizational culture thatlearns from mistakes, helps each other,and repeats growth.

Future• We provide safe and high quality
products and services, comfortable daily
life and convenience for people aroundthe world.
• We make environmental conservation
efforts that are helpful to the earth andlife.

Happiness• Timely development of
eco-conscious products

Risks• Stable procurement of raw
materials• Compliance with labor laws andregulations• Compliance with relevant laws andregulations on conflict minerals• Prevention of occupational
accidents• Stable product supply• Promotion of BCP management• Streamlining of distribution• We practice working styles that gives us
a lively and brilliant work.
• We hope to be in the world with thecontinuous smiles of customers,
employees, shareholders, family andloved ones.

• Prevention of quality issues

Code of conduct• We respect human rights.

Relevant SDGs

• We act with fairness and freedom in ourbusiness dealing.
• We comply with all laws, regulations, andsocial norms.
• We protect and respect intellectual
property.
• We handle information properly andmaintain confidentiality.
• We do not use our position in ourorganization for personal gain.

11

FDK GROUP CSR REPORT 2022

FDK GROUP CSR REPORT 2022

12

Approach to Value Creation

The Story of Value Creation at the FDK Group

Mid-Term Business Planand Materialities

The FDK Value Chain

CSR Management

We deliberate on levels of severity and priority to set these initiatives in or-

CSR activities for the FDK Group strives to resolve various social issues and contributes to the development of a sustainable society andplanet through the practice of “FDK Group Corporate Conduct Guidelines” and the “FUJITSU Way” as a member of the Fujitsu Group.

our stakeholders while working to realize the FDK Group Vision.

der to engage in responsible business management that responds to social
requirements.
By taking on these seven prioritized initiatives, we provide value to all of
CSR management activities include actions that comply with core ISO
26000 issues, and the standards in all five sections of the RBA, improving

CSR Management

Seven Prioritized Initiatives* “Conflict minerals”
Minerals supporting conflicts through mining and brokering to raise capital for armed groups,
or minerals closely related to issues such as human rights violations or labor problems.
The Dodd-Frank Act enacted in the United States in July 2010 defines tantalum, tin, gold,
tungsten, and other minerals determined by the State Department as conflict minerals, including minerals exported from the Democratic Republic of the Congo and neighboring countries,
and this Act indicates a duty to report any use of conflict materials by a company listed publicly
in America to the Securities and Exchange Commission (SEC). Since FY2019, FDK has undertaken a Responsible Minerals Procurement effort that covers high-risk minerals, including
cobalt in addition to existing conflict minerals.

our quality of business management.
The FDK Group's CSR Policy is to implement the “FDK Group Corporate Con-The CSR Promotion Committee has three organizational subcommittees

duct Guidelines,” which describe the conduct that all people working in thefor the purpose of executing activities to be compliant with the Responsible

FDK Group should actively practice, and the FUJITSU Way, which defines

Business Alliance (RBA): one to provide international CSR guidance, one to

the Fujitsu Group philosophy that we pledge to follow as a member of the

conduct surveys and responds to requests about CSR from customers, and one

Fujitsu Group.

to properly manage responsible minerals procurement.

As a Smart Energy Partner that assembles advanced technologies, the
FDK Group would like our customers to best utilize electric energy in a safe

Procurement Activities In-line with CSR

and efficient manner, and it hopes to contribute to the materialization and

The FDK Group has collaborated with suppliers in drafting the “FDK Groupdevelopment of a sustainable society. According to this vision, all of our busi-

Supply Chain CSR Promotion Guidebook,” which presents our approach toness activities will practice the FUJITSU Way and the FDK Group Corporate

promoting procurement activities in keeping with CSR principles, and we

Conduct Guidelines to help foster sustainable growth of the planet and society

have published the guidebook on our website. It is based on the FDK Group

based on the expectations and requirements of our diverse stakeholders.

CSR Policy, FDK Group Corporate Conduct Guidelines, and the FUJITSU Way.

Social Requirements

Seven Prioritized Initiatives

Our CSR efforts focus on seven prioritized initiatives. In addressing theseIn addition to practicing procurement activities in compliance with thesechallenges, we demonstrate a commitment to responsible business opera-

guidelines, we also ask our suppliers in the supply chain to do the same.

CSR Policy

CSR Policy

FDK established the CSR Promotion Committee to expand and standardize

FDK Group Corporate
Conduct Guidelines

2

3

Contributing to
the Materialization
and Development ofa Sustainable Society

Protecting the
Global Environment

Embracing Diversity
and Inclusion

FDK Group intends to contributeto the resolution of global
environmental challenges
through developing andsupplying high performancebatteries and electronic devices,
as well as reducing the loads onthe environment in the processof our Procurement, Productionand Supply.

FDK Group will promote
diversity in human resources
and irrespective of nationality,
gender, sexual orientation, age,ability/disability, religion orvalues to enable individuals togrow with the company.

ES

FDK group, as a Smart Energy
Partner, assemble advanced
technologies, would like ourcustomers to best utilize electricenergy in a safe and efficientmanner, and contribute tomaterialization and developmentof sustainable society.
E S

tions as a global company.

Promotion Framework for CSR Policies

1

FUJITSU Way

the “FDK Group Corporate Conduct Guidelines” and the “FUJITSU Way”,
which are the key to the CSR activities of the FDK Group.

CSR-oriented Procurement Activities

The CSR Promotion Committee chaired by a director (corporate officer)
confirms the action status of the seven prioritized initiatives based on the
CSR Policy and periodically reviews matters such as CSR-related information

FDK Group

and initiatives. We also publish a wide range of information on our corporate

Supply Chain

website from the FDK Group CSR Policy and the prioritized initiatives set based

CSR Promotion
Guidebookon that CSR Policy to measures and activity results.

FDK Group
Supply Chain
CSR Survey
Questionnaire

Requests for
Suppliers

Developing humanresources for theircontribution to society
and the planet

Communicating and
Collaborating with
Stakeholders

FDK Group will lead the way incultivating employees who,from a global perspective, arepioneers in contributing to theadvancement of society.

As a good corporate citizen,
FDK Group will pursue athorough understanding of themultiple needs andexpectations of its stakeholders and pursue businessactivities to meet these needs
and expectations.
S

Role of the Promotion Committee

The FDK Group adheres to the Fujitsu Group Policy on Responsible Minerals

1. Formulate, set, and promote CSR prioritized initiatives
2. Promote activities to improve corporate sustainability in order toconform to RBA standards

Procurement and sees its corporate responsibility related to mineral issues

6

7

Ensure Compliance

Strengthening
Corporate Governance

FDK Group will act with senseof ethics and comply with thelaws and social codes.

Toward the realization of the
CSR Policy, aims to improve
the transparency andsupervision function ofmanagement, FDK Group will
strengthen the Corporate
Governance.

S G

G

E Environment S Social G Governance

Responsible Mineral Procurement Policy

CSR Promotion Committee

Policies Supporting FDK Business Activities

as one important CSR challenge. Our policy designates tantalum, tin, gold,
tungsten, and cobalt as minerals with a high risk of supporting conflicts,
using forced labor, or violating human rights, and it removes any problematic

Corporate Sustainability
Improvement Subcommittee

CSR Survey
Subcommittee

Responsible Minerals
Subcommittees

refineries or other business proprietors from the supply chain. The FDK Group

Role of Subcommittee
Act to close the gap with RBA
standards

Role of Subcommittee
Conduct CSR surveys

Role of Subcommittee
Conflict Mineral Surveys

ble mineral procurement.

Member Structure
Departments related to “labor,
ethics, environment, health andsafety”

Member StructureMembers that cover
items in CSR surveys

Member Structure
Persons in charge oftechnology departments

FDK GROUP CSR REPORT 2022

5

S

Framework of CSR Promotion

13

4

ISO
26000

FDK Group

FDK Group Corporate
Conduct Guidelines

Fujitsu Group

FUJITSU Way

RBA

will ensure transparency throughout the supply chain and strive for responsi-

Positioning of the Seven Prioritized Initiatives Set According
to the FDK Group CSR Policy
The FDK Group has set seven prioritized initiatives based on its CSR Policy.

FDK GROUP CSR REPORT 2022

14

The Story of Value Creation at the FDK Group1C ontributing to theMaterialization andDevelopment of a Sustainable
Society

Ideal Form

Focus Measures

The FDK Group will deliver offerings to customers thatrealize clean, safe and stable electric energy use in thebattery, engineering, next-generation battery, and power
management solution fields.

The FDK Group will actively take advantage of ecosystems to increase the value of
offerings provided together with various partners as well as develop and provide
products and solutions that enable customers to utilize electric energy in diversifiedways.

FDK group, as a Smart Energy Partner, assemble
advanced technologies, would like our customers
to best utilize electric energy in a safe andefficient manner, and contribute to materializationand development of sustainable society.

FDK Group intends to contribute to the resolutionof global environmental challenges throughdeveloping and supplying high performancebatteries and electronic devices, as well as
reducing the loads on the environment in theprocess of Procurement, Production and Supply.

FDK Group always thinks about environmental issues andis taking positive action to reduce the loads and risk on
the environment through supplying products to realize a
Clean Economy era.
• FDK implements energy conservation measures atfactories and offices while promoting improvements indistribution to help prevent global warming.
• FDK Group reduces the loads on the environment
through the actions for 3R (Reduce, Re-use, Re-cycle).

E mbracing Diversity andInclusion

All the people in FDK Group prohibit all the discrimination*
and accept the diversity in its human resources withactual actions.

FDK Group will promote diversity in human resources
and irrespective of nationality, gender, sexual
orientation, age, ability/disability, religion or values toenable individuals to grow with the company.

* Violation of human rights due to emotional or physical abuse,sexual harassment, and unfair discrimination based onnationality, race, gender, religion, policy, social standing,birthplace, disability, sexual orientation.

D eveloping human resources
for their contribution to society
and the planet

FDK develops human resources who can be active from a
global perspective through business in a long term.

2

3

4

P rotecting the Global
Environment

Communicating and
Collaborating with
Stakeholders

As a good corporate citizen, FDK Group will
pursue a thorough understanding of the multiple
needs and expectations of its stakeholders andpursue business activities to meet these needs
and expectations.

6Ensure Compliance

FDK Group correctively discloses the information to beopened and communicate with stakeholders. FDK Group
continuously pursues company activities to contribute to
the society by reflecting the communication to the businessactivities.

Management and all the Employees always act along thelaws and social codes promptly recognizing the new orrevised information of the laws.

FDK Group will act with sense of ethics and comply
with the laws and social codes.

7S trengthening Corporate
Governance

Toward the realization of the CSR Policy, aims to
improve the transparency and supervision function ofmanagement, FDK Group will strengthen the Corporate
Governance.

15

FDK GROUP CSR REPORT 2022

The Managements fully understand the essence ofCorporate governance and take the necessary actions toreview the Management system and organization.

CSR Management

Reducing the environmental impact of customers.
Promoting the development of eco-conscious products with consideration forlife-cycle, such as high-efficiency energy-saving products and resource-saving
products.
Reducing the environmental impact in FDK processes.
• Reducing CO2 emissions and energy consumption.
• Reducing waste.
• Reducing chemical substances.

• Creating the working environment-friendly for all the people.
• Improving the personnel treatment system.
• Proceeding the educational activity such as trainings and seminars.

• Proceeding the systems to develop human resources for their contribution to local
community through business.
• Cultivating the communication ability through the relation with local community.

FY2021 Actions
Targets

Seven Prioritized Initiatives

ISO
26000

Achievements• Ni-MH batteries: Expand sales of
products for in-vehicle accessories(eCall), home appliances, mobility,
social infrastructure, and backup
applications.
• Lithium batteries: Develop cylindricalspiral batteries for various meter andshort-distance communication markets.
• Alkaline batteries: Enhancecompetitiveness through theintroduction of new products and thedevelopment of environmentally friendly
products.

• Electronic Business: New businessacquisition linked to various modules
for mobility applications, switching
power supplies for semiconductor
equipment applications, and all-solidstate batteries.
• Next-generation technology
development: Promote developmentof next generation batteries. (Small
all-state SMD Battery, nickel-zincbatteries, metal-hydride/air secondary
batteries)• Ni-MH batteries: Started mass production of new products for the in-vehicle
accessories market and sales of battery systems for the transportation
infrastructure market. We are working to further expand sales such as byshipping evaluation samples for security equipment, large servers/storage, andother backup devices.
• Lithium batteries: Expanded lineup of batteries with long-term reliability andpromoted development of high-capacity models. We also expanded new businessfor the IoT and meter markets. From March 2022, we are working to further expand
sales by consolidating the production system from two production bases into one.
• Alkaline batteries: Through an integrated production and sales system, we
promoted the acquisition of new business and cultivation of business in ourcore domestic sales markets. We also strengthened our collaboration with othercompanies in the industry in Japan. We are promoting the development of highvalue-added products to strengthen our competitiveness. In addition, we have
expanded the use of FSC-certified paper.

• Electronic business: We are focusing on making various modules for mobility
applications smaller and lighter and on acquiring new business in connection
with switching power supplies for semiconductor equipment applications andall-solid-state batteries.
• Next-generation technology development: Regarding Small all-solid-state SMD
battery, we focused on shipping samples for evaluation in preparation for the startof mass production and establishing specifications to meet customer requirements.
We are developing nickel-zinc batteries for use as an alternative to lead batteries,
and have started shipping samples to specific customers. We have confirmed thatthey are superior to lead batteries in self-discharge and low-temperature, high-power
discharge performance, and are focusing on establishing their specification for
individual applications. In February 2022, we started demonstration tests of metalhydride/air secondary batteries that simulate solar power generation with 1.2-kWh
power storage modules. We are continuing to make proposals to customers andconduct development to improve cost competitiveness.

• Develop two or more products ateach site every year that help improve
resource conservation.
• Develop three or more products ateach site every year that help improve
resource efficiency.
• Promote adoption of renewableenergy.

• Reduce energy consumption, and limit
CO2 emissions by the overall domestic
FDK Group to 37,545 t or less.
• Improve the energy consumption
per unit an average of 1% per year
at all sites.
• Improve the amount of waste
generated per unit by 6% comparedto FY2015 at all sites.
• Reduce PRTR chemical emissions
per unit by 6% compared to FY2015
at all sites.

• Achieved our development target set for products that contribute to greater
energy efficiency.
• Achieve our development target set for products that contribute to greater
resource efficiency.
• Achieved targets related to promoting the adoption of renewable energy.
• Achieved our CO2 emissions reduction targets.

• Achieved our target to improve the energy consumption per unit an average of
1% per year at all sites.
• Achieved our waste reduction targets.
• Achieved our chemical substance reduction targets.

• Create professional environments
conducive to work by LGBT employees
and by those with disabilities.
• Implement work-style reform.

• Improve the education system acrossthe entire group.
• Cultivate an environment where
diverse individuals can actively
participate.

• The Tottori Plant has been renovated with multi-use toilets and the entrance tothe cafeteria has been made barrier-free.
• Elevators at the Kosai Plant were refurbished to accommodate people withdisabilities.
• Regulations for telework and flextime work systems were revised, and telework
allowances were introduced.

• The content of management training was reviewed and e-learning wasintroduced.
• Conducted an employee satisfaction survey. (Response rate was 99.4%)

Refer toP21~P24

P31~P34

P27~P29• Stratified training was reviewed with respect to the basic education curriculum
and lecture materials.
• Training for next-generation leaders was implemented as planned, withparticipants selected in consideration of future talent management.

• Strengthen stratified training.
• Nurture global business and future
leaders.

FDK Group will lead the way in cultivating
employees who, from a global perspective, arepioneers in contributing to the advancement ofsociety.

5

The FDK Value Chain

FDK Group is advancing its CSR activities by setting seven prioritized initiatives based on its CSR Policy. These prioritized initiatives actively
tackle issues that contribute to society through FDK Group businesses as well as achieve items pursued in areas such as the ISO 26000
and RBA. As a global organization, the FDK Group uses these prioritized initiatives to promote responsible management in the efforts below.

Seven Prioritized Initiatives
Prioritized Initiatives

Mid-Term Business Planand Materialities

Approach to Value Creation

P29~P30

Proceeding communication opportunities with Stakeholders and correct response
for requests.
• Releasing CSR Report.
• Customers: Disclosing correct information for the request from customers.
• Shareholders, investors: Studying to realize the communication opportunities
like Shareholders meeting, IR meeting, information on Home page, Management
policy and Financial results briefings.
• Supplier: Proceeding two-way communication.
• Employee: Communications with Labor union, Employee satisfaction monitoring,
Communication with Top Management.
• Local community: Activity to contribute to local community. (such as,Communication event with local community, Cleaning activity, Factory tour,
Making Battery class, etc.)• Releasing CSR Report 2021.
• Customers: Disclosing correct
information for the request from
customers.
• Shareholders, investors:
Conduct evaluations into various
communication opportunities, such as
shareholder meetings, IR meetings,
informational disclosures via thecorporate website, management
policies and financial briefings.

• Supplier: Proceeding two-way
communication.
• Employee: Dialogue between
labor and management, employee
satisfaction surveys, a communication
with top management and promoterisk management.
• Local communities: social contribution
activities for local residents andothers.

• Released our CSR report 2021.
• Continued timely informational disclosures.
• Responded to 40 inquiries from customers (company profile, etc.).
• Responded to 96 inquiries from media, shareholders, and investors.
• Since FY2020, explanatory materials on financial results and the progress ofthe mid-term business plan have been disclosed separately from the financial
statements when financial results are released.

• Expanded the scope of major suppliers taking part in the Fujitsu Group Supply
Chain CSR Survey Questionnaire.
• Conducted monthly liaison meetings between labor and management.
• Continued to take part in local social contribution activities at each business site.

• Enhancing the activity to improve the company sustainability. (evaluation,
improvement, education)• Reviewing regulations about compliance.
• Planning and performing the education program for Corporate Conduct guidance,business ethics including to the overseas group companies.
• Improving monitoring.
• Collecting information about new or revised laws and reflecting to businessactivity correctively.

• Reviewing regulations aboutcompliance.
• Planning and performing the
education program for Corporate
Conduct guidance, business ethics
including to the overseas groupcompanies.

• Strengthen company-wide monitoring
through internal reporting.
• Collecting information about new orrevised laws and reflecting to businessactivity correctively.

• Reviewed regulations about compliance.
• Conducted e-learning (human rights, copyright, information management,compliance).
• Internal reports received: 4 instances.
• Internal reporting desk publications: 17 times.

• Collected information about new or revised laws and reflected them in businessactivities appropriately.
• Published an internal Legal News compiling information such as legal andregulatory amendments.

• Planning to design the Board of Directors to do the correct decision making withfully effective supervision and the separation of supervision and execution.
• Evaluating the Board of Directors (Self evaluation and third party’s verification,
Continuous improvement) and Training to maintain and improve the effectivenessof Board of Directors.

• Smoothly share information andconduct ongoing high-quality auditing
and supervision with outside directors
through the Audit and Supervisory
Committee Office.

• Continue Board of Directors
performance evaluation and officer
training.
• Participation by corporate officers in
the above training.

• Shared information smoothly and conducted ongoing high-quality auditing andsupervision by outside directors through the Audit and Supervisory Committee
Office.
• Board of Directors performance evaluation and officer training were conducted.
• A voluntary Nomination and Remuneration Advisory Committee was establishedin March 2022.

P25~P26

P17~P18

P19~P20

FDK GROUP CSR REPORT 2022

16