Lintec GroupCSR Report 2014

Contents
01 Editorial Policy
02 Overview of the Lintec Group04 Message from the President
06 CSR in the Lintec Group
Highlight

1

10 Achieve Sustainable Business Growthby Establishing Corporate-WideBusiness Continuity
Management System (Corporate BCMS)

Company Motto

Sincerity and Creativity
The foundation of the Lintec Group’s CSR is its company
motto, “Sincerity and Creativity.” These are the ideals thateveryone in the group aspires to.
“Sincerity” means thinking about what can be done that will

14 CSR Themes, Targets, and Performance

be of benefit and appreciated and tackling every task with all
one’s heart. “Creativity” means to work constantly to

Corporate Governanceinnovate and improve, seeking greater added value without

16 Practicing Sincerity

being satisfied with the status quo.

Social Report
18 Providing Value to Customers
19 Cooperating with Suppliers
20 Together with Employees

Showing integrity to all stakeholders and taking on new
challenges over and over again with a determination to
innovate is the starting point for a manufacturer dedicatedto craftsmanship.

(Human Rights / Employment /Safty and Disaster Prevention)“Start with Sincerity and then apply Creativity”—this is

25 Together with Local Communities

Lintec’s unchanging approach and the driving force that
underpins its sustainable growth.

Highlight

2

26 Meet the Expectations of Community
as Corporate Citizen with Local
Social Actions

28 Communicating with Stakeholders

Environmental Report
29 Environmental Management
30 Fighting Climate Change
32 Reducing Waste and Water Usage
33 Reduction of Environmentally
Hazardous Substances

34 Environmental Activities of 12 Group
Companies Outside Japan

36 Relationship between Lintec andthe Environment

37 Third-Party Opinion

Editorial Policy
The Lintec Group follows its company motto “Sincerity and Creativity”
when conducting its CSR activities. This report mainly explains our CSR
activities during fiscal 2013. With the aim of providing information to
all stakeholders in a simple and comprehensive manner, the main
activities are organized into the categories of Corporate Governance,
Social Report, and Environmental Report, following the format used in
the last year’s report. The Overview and Highlight pages have also
been increased.
The Highlight section features BCMS (business continuity
management system) and CSR activities. Highlight 1 focuses on the
ISO 22301 certification that the Group obtained in fiscal 2013 andprovides an overview of activities related to this international BCMS
standard. Highlight 2 focuses on an example of our CSR activities
conducted as communications with stakeholders*.
This report highlights certain information which is important for
both the stakeholders and the Lintec Group. For more detailed
information, please visit our CSR website.
* Stakeholders include consumers, employees, shareholders, creditors, suppliers, local
communities, and government agencies.

Main Channels for CSR Information
CSR Report(Booklet / PDF version)[Booklet]Information on the CSR activities of
the Lintec Group described ina simple manner.
[PDF version] Full version is created in English.
Abridged version is created in Korean,Chinese (traditional), Chinese (simplified),
Malay, Indonesian and Thai.

CSR Website
More detailed information on the CSR
activities of the Lintec Group[Japanese]
http://www.lintec.co.jp/csr/[English]http://www.lintec-global.com/csr/

WEB

This icon shown on some pages of this report indicates that related
information is available on our CSR website. This icon is shown in the footerof the relevant pages, together with the outline of the related information.

Guidelines Referenced
ISO 26000 (social responsibility)
Sustainability Reporting Guidelines (version 4) of the Global Reporting
Initiative (GRI)
Environmental Reporting Guidelines (2012) of the Ministry of theEnvironment of Japan
Environmental Reporting Guidelines (2015) of the Ministry of theEnvironment of Japan
Reporting Period
This report covers the period from April 1, 2013, to March 31, 2014
(fiscal 2013). It also includes some information up through June 30, 2014
concerning specific initiatives.
Environmental performance data for 12 group companies outside Japan
covers the period from January 1 to December 31, 2013.

Publication datePrevious publication: August 2013
Current publication: August 2014
Next publication: August 201501

Overview of the Lintec Group

Lintec in Everyday Life
Lintec contributes to people’s everyday life around the world
by manufacturing and providing a wide variety of products.

Major Productsof Lintec Group

Marking films

Specialty paper

Casting paper for
carbon fiber composite materials

Adhesive papers andfilms for labels

Labeling materials consistent withthe materials of plastic container

Interior decorative sheets

Films for building windows

Films for car windows

Semiconductor-related
tapes and devices

Coating films for laminatedceramic capacitor manufacture

LCD films

Corporate Profile (as of March 31, 2014)
Company nameHead office
WebsiteEstablished

Lintec Corporation
23-23, Honcho, Itabashi-ku, Tokyo 173-0001, Japanwww.lintec-global.com/
October 1934

CapitalStock listing
Fiscal year-end
Representative

23.2 billion yen
Tokyo Stock Exchange, First Section (Securities Code: 7966)
March 31
Hiroyuki Nishio, President and CEO
Consolidated: 4,223 Non-consolidated: 2,536

Number of employees
Sites

Sales offices:

Iidabashi (Tokyo), Sapporo, Sendai, Hokuriku(Toyama Prefecture), Shizuoka, Nagoya,
Osaka, Hiroshima, Shikoku (Ehime Prefecture),
Fukuoka, and Kumamoto
Production sites: Agatsuma (Gunma Prefecture), Kumagaya(Saitama Prefecture), Ina (Saitama Prefecture),
Chiba (Chiba Prefecture), Tatsuno (Hyogo
Prefecture), Shingu (Hyogo Prefecture),
Komatsushima (Tokushima Prefecture),Mishima (Ehime Prefecture), Doi (Ehime
Prefecture), and Niihama (Ehime Prefecture)
R&D facility:
Research Center (Saitama Prefecture)
Overseas office: Shanghai (China)

02

Business activities

Development, manufacturing, and sales of adhesive
products (adhesive papers and films for labels, marking
films, window films, semiconductor-related tapes,
optical function film, health-care products, etc.);
specialty papers (color envelope paper, color paper,
special function paper, etc.); processing materials(release paper, release film, casting paper for synthetic
leather, casting paper for carbon fiber composite
material, etc.); and adhesive-related devices (label
printing machines, labeling machines,
semiconductor-related equipment, etc.)

Sales

Consolidated: 203.2 billion yen
Non-consolidated: 160.8 billion yen(fiscal 2013)

Operating income(fiscal 2013)

WEB

Consolidated: 13.8 billion yen
Non-consolidated: 8.3 billion yen

For more detailed financial information, see the Investor Relations
section of the Lintec Website at www.lintec-global.com/ir/.

Global Network Supports Our Activities
EuropeJapan

LINTEC EUROPE B.V.
Hungary Office
LINTEC ADVANCED TECHNOLOGIES (EUROPE) GMBH
Israel Office

LINTEC CORPORATIONHead Office ■Iidabashi Office[Branches]
Sapporo Branch, Sendai Branch, Hokuriku Branch,
Shizuoka Branch, Nagoya Branch,
Osaka Branch, Hiroshima Branch,
Shikoku Branch, Fukuoka Branch
Kumamoto Office[Plants and Research Laboratory]
Agatsuma Plant ■ Kumagaya Plant ■ Chiba Plant ■Tatsuno Plant ■ Shingu Plant ■*1
Shingu Plant, Tatsuno Office ■*1 Komatsushima Plant ■Mishima Plant ■*2 Doi Plant ■*2 Niihama Plant ■Ina Technology Center ■ Research Center ■About

30 employees/

2 companies
Asia

LINTEC (SUZHOU) TECH CORPORATION ■Beijing Branch
Shanghai Branch
Shenzhen Branch
LINTEC (TIANJIN) INDUSTRY CO., LTD.
LINTEC PRINTING & TECHNOLOGY (TIANJIN) CORPORATION ■LINTEC ADVANCED TECHNOLOGIES (SHANGHAI), INC.
Suzhou Branch
Tianjin Branch
Shenzhen Branch
Chengdu Branch
MADICO, INC.
Suzhou Office
LINTEC CORPORATION
Shanghai Office
LINTEC SPECIALITY FILMS (TAIWAN), INC.
LINTEC HI-TECH (TAIWAN), INC.
LINTEC ADVANCED TECHNOLOGIES (TAIWAN), INC. ■Hsinchu Office
LINTEC KOREA, INC. ■LINTEC SPECIALITY FILMS (KOREA), INC.
LINTEC ADVANCED TECHNOLOGIES (KOREA), INC.

LINTEC COMMERCE, INC.
LINTEC SIGN SYSTEM, INC.
FUJI-LIGHT, INC.
LINTEC SERVICE, INC.
LINTEC CUSTOMER SERVICE, INC.
PRINTEC, INC.
TOKYO LINTEC KAKO, INC. ■OSAKA LINTEC KAKO, INC.

About

3,400 employees/

9 companies

United States
PT. LINTEC INDONESIA ■LINTEC SINGAPORE PRIVATE LIMITED ■Hanoi Office
PT. LINTEC JAKARTALINTEC ADVANCED TECHNOLOGIES(PHILIPPINES), INC.
LINTEC PHILIPPINES (PEZA), INC.
LINTEC (THAILAND) CO., LTD.
LINTEC BKK PTE LIMITED
LINTEC VIETNAM CO., LTD.
LINTEC HANOI VIETNAM CO., LTD.
LINTEC INDIA PRIVATE LIMITED
LINTEC INDUSTRIES (MALAYSIA) SDN. BHD. ■LINTEC INDUSTRIES (SARAWAK) SDN. BHD. ■LINTEC ADVANCED TECHNOLOGIES(MALAYSIA) SDN. BHD.
Kuala Lumpur OfficePenang OfficeAbout1,500 employees/

25 companies

LINTEC USA HOLDING, INC.
MADICO, INC. ■Madico Window Films
Madico West
Madico Southwest
Madico Mid-America
Madico South Texas
Madico Southeast
Madico Florida
Madico Northeast
LINTEC OF AMERICA, INC.
Chicago Office
Dallas Office
NANO-SCIENCE & TECHNOLOGY CENTER

About

300 employees/

3 companies

ISO 14001*3 certified sites
Note: The numbers of employees on this page includes employees of consolidated and non-consolidated subsidiaries.

Scope and Wording
The scope of this report is arranged as indicated below and follows the same wording. If any information provided diverges from this scope, this is
made clear within the text.
Corporate Governance Social Report
Lintec: Lintec Corporation
Lintec Group: Lintec Corporation plus group companies in and outside Japan
Environment Report
Lintec: Lintec Corporation (head office, Agatsuma Plant, Kumagaya Plant, Chiba Plant, Tatsuno Plant, Shingu Plant, Komatsushima Plant,
Mishima Plant, Doi Plant, Niihama Plant, Ina Technology Center, Research Center) and Tokyo Lintec Kako, Inc.
Lintec Group and 12 overseas group companies: Refers to the sites listed above and 12 overseas group companies
Note) 12 overseas group companies:
Lintec (Suzhou) Tech Corporation, Lintec (Tianjin) Industry Co., Ltd., Lintec Printing & Technology (Tianjin) Corporation,
Lintec Speciality Films (Taiwan), Inc., Lintec Advanced Technologies (Taiwan), Inc., Lintec Korea, Inc., Lintec Speciality Films (Korea), Inc.,
PT. Lintec Indonesia, Lintec Industries (Malaysia) Sdn. Bhd., Lintec Industries (Sarawak) Sdn. Bhd., Lintec Singapore Private Limited, and Madico, Inc.

Lintec Group: Lintec Corporation plus group companies in and outside Japan*1 Shingu Plant and Shigu Plant Tatsuno Office obtained ISO 14001 certificate as one site.
*2 Mishima Plant and Doi Plant obtained ISO 14001 certificate as one site.
*3 ISO 14001: the international standard for environmental management systems

03

Message from the President

Hiroyuki Nishio
President and CEO
Lintec Corporation

Continue “Aggressive” and “Defensive”
CSR Activities Sincerely and with the Spiritof Innovation

responsibility as an intermediary material manufacturer to continue
stable product supply to avoid any inconvenience to customers, whileat the same time prioritizing employees’ lives and safety. To further

On April 1, 2014, I was appointed as the President and CEO of Lintec.

strengthen this system, we are now developing a corporate-wide

I have been engaged in development and progress management of

BCMS in accordance with ISO 22301*, a global BCMS standard.

three medium-term business plans of the Company as a corporate

In the environmental area, we uphold the policy to “reduce

officer, the head of the Corporate Strategic Office and the head of theenvironmental burdens” and to “promote effective use of resources.”

CSR Management Office. The business fields of the Lintec Group are

Based on this policy, we began disclosure of specific environmental

very extensive. As a manufacturer of intermediary materials, ourvalues in fiscal 2013. Efforts made in R&D and production areas

finished products are used in every scene of daily life. All people in theintended to pursue this policy have brought positive results.

Lintec Group follow the company motto “Sincerity and Creativity.”

In implementing these CSR activities, employees play the leading

When conducting CSR activities, I sense again the belief that CSR

role and their understanding is absolutely imperative. As the head ofshould be pursued as a foundation for the Lintec business.

the CSR Management Office, I have hosted CSR workshops for people“Defensive” CSR refers to compliance with laws and regulations,in the Lintec Group in Japan and overseas, as well as CSR Meetings

fair transactions, respect for human rights, comfortable working

which covered topics related to how we could solve social problems

environment and other responsibilities that we should fulfill in our

through our business activities. As a result of these activities, I feel thatbusiness activities. We need to work on business activities with all of

employees’ awareness of CSR’s importance and their CSR activities

our heart and soul, with the motto of “Sincerity.” Moreover, inhave been enhanced throughout the organization.

accordance with the motto of “Creativity,” by continually working onWith this CSR background, we started a new medium-term

creation and improvement, we will place more emphasis on creation

business plan “LIP-2016” in fiscal 2014. “LIP-2016” has five keyof products contributing to the realization of a rich society andinitiatives: 1) further promote global development; 2) create innovative

providing solutions for social problems. These are our “aggressive”

new products that will support the next generation; 3) transform intoand creative CSR activities.

a robust corporate structure; 4) promote strategic M&A; and 5) foster
human resources. Among these, I believe “global development” andFrom “LIP-III” to “LIP-2016”
Corporate-Wide and Enhanced CSR Activities“LINTEC INNOVATION PLAN III (LIP-III),” the previous medium-term

04“create innovative new products” are the top priorities that need tobe addressed immediately.
To achieve our business target, “an overseas sales ratio of 40%,”

business plan, ended in fiscal 2013. Focused on “corporate activities

all Lintec people must share the sense of value and standards ofwith a commitment to CSR-driven management,” we conductedconduct, including employees in overseas group companies. To

various activities. One of the great advances we have achieved in thispromote this, we have created the “LINTEC WAY,” a statement

LIP-III was the BCMS (business continuity management system). If a

describing the path we should follow. We also translated the LINTEC

disaster or any emergency incident occurs, it is Lintec’s considerable

GROUP Compliance Guideline into six languages and distributed them

Contribute to Society through Manufacturing,with Unified Efforts of Employees andwith “Sincerity and Creativity.”

to overseas group companies. There will be more overseas sites in thevalue-creating project. This project will also involve consultants fromfuture. We will continue to host study meetings and otheroutside Lintec.

opportunities to strengthen our global governance.

We will also strive to develop the next generation of excellent
people who can create value, by establishing and improving work

Create Innovative New-Generation Products
Meet the Needs of Society by Accumulated
Technologies
To “create innovative new products that will support the next
generation” is a very important target for Lintec to continue its

environments where young employees are encouraged to propose ideas,
and where their ideas are actively discussed and adopted as appropriate.

New Business to Meet the Society’s Expectation
with Company Motto “Sincerity and Creativity”

business and fulfill its social responsibility through business activities

Chairman Ouchi (former CEO) always emphasized the importance ofover the next 100 years.

CSR. I have the same belief. Communications and interactions within

As companies diversify their business areas, their markets often

the organization and between groups have gradually become active as

overlap and the borders between industries have become vague.

a result of our efforts to strengthen CSR activities. This also helps toUnder these circumstances, we should focus on delivering values tofacilitate efficient operations of businesses. Lintec should continue

customers when manufacturing products, by demonstrating creativity

sustainable growth by always walking in step with society. To this end,

beyond the conventional way of thinking, and sometimes beyond thewe will continue to further enhance this CSR awareness throughout

border of business fields.

the Lintec Group, and develop all Lintec people’s commitment to care

Accumulated technologies are one of our advantages. However, toutilize them more effectively in developing new products that arefor customers and others.
Our company motto “Sincerity and Creativity” advocates the idea

valuable for society, we need to listen more actively to opinions fromof creating products and new values with a sincere spirit, which is theoutside the organization and to identify social problems we shouldbasis of CSR. Adhering to this motto, we will strive to develop

tackles. Specifically, we will continue CSR Meetings to enhance

products and businesses for the future and for stakeholders. To

awareness of employees. CSR awareness workshops will also be

communicate our CSR activities broadly to the public and allcontinued by inviting lecturers from outside. Moreover, we will identify

employees, we structured this report to present the overview of thethe areas of CSR activities that are important for Lintec to create

results of our CSR activities during fiscal 2013 in an easy-to-read andinnovative products that are quite different from the existing products.

organized manner. We hope to have your continued support andIn the R&D area, we have worked on the technology to process

guidance for Lintec and its CSR activities.

carbon nano-tubes into sheets. Aiming to introduce this product into
the market by the end of fiscal 2016, we established a new R&D
institute in the U.S. where the technology for mass production of thisproduct is being developed. Furthermore, to strengthen the R&D
abilities, we will build a global Research Center and implement a* ISO 22301: An international standard for BCMS that a corporation or organization should follow inestablishing and effectively operating a system to prepare for earthquake, fire, trouble in the IT system,
financial crisis, bankruptcy of supplier, pandemic, or other natural disaster or accident.

05

CSR in the Lintec Group

Enhance CSR in Medium-term Business
Plan “LIP-2016”
The CSR in the Lintec Group is built on its company motto“Sincerity and Creativity.”
All Lintec people are committed to CSR activities with this motto.

We will attempt to provide astable supply of products, tomanage quality, and to improve
service in order to meet customer
expectations and earn trust.

Customers

Practice CSR through the Core BusinessAccording to LIP-2016

th
row
eg

M is s i o n S t a t em

A c h i e v e s u s t ai n a b l

We will strive for fairand highly transparent
transactions, aiming formutual harmony andbenefit with all
suppliers.

Employees

this basic policy. With strong awareness that CSR activities directly

pp.20–24,
p. 28

impact the business, all Lintec people are working on the CSR

LINTEC INNOVATION PLAN 2016 (LIP-2016)(April 1 2014 to March 31, 2017)

In April 2014, the new medium-term (three-year) business plan
LIP-2016 started.
One of its key initiatives is to “further promote global

We will endeavor to create workplaceenvironments where employees can workwith peace of mind while respecting
employees’ motivations in life and work,
based on the goal of raising employee
satisfaction.

1

implemented in our businesses. We also plan to provide workshops
to discuss specific activities to be conducted.

06

t Expand overseas businesses with a particular focus on
Asian regiont Establish firm business foundations in new regions

3
4
5

Transform into a robust corporate structure

were distributed to all employees of the Lintec Group in April 2014.

held CSR Meetings to discuss how aggressive CSR should be

Further promote global development

2

Group Compliance Guidelines. Copies of the reinforced Guidelines

innovative new products that will support the next generation,” weWe will communicate with local
communities and pursue
harmonious co-existence, basedon the idea that companies arecommunity members.

Create innovative new products that will
support the next generationreferring to ISO 26000. In fiscal 2013, we reviewed the Lintec

As part of another key initiative in this Plan to “create

pp. 25–28

We will meet the
expectations ofshareholders andinvestors by increasing
managementtransparency, disclosing
information in a timely
and appropriate manner,and striving to increase
corporate value.

Return to Growth Path through Active Management andContinuous Innovationlevel is very important in order to satisfy the needs in emerging
global scale by participating in the UN Global Compact and by

Local
Communities

Shareholders
andInvestors
p. 28

Basic Policy

development.” Strengthening the group management at a global
countries. The Lintec Group has fostered corporate ethics on aold innovation

Company Motto

Sincerity andCreativity

Innovation.” CSR is an essential element to be fulfilled to realize

activities in a systematic manner.

w

nd b

Growth Path through Active Management and Continuousea

PLAN 2016 (LIP-2016)” upholds the basic policy to “Return tos iv

Our new medium-term business plan “LINTEC INNOVATION

es

Compliance Guidelines.

p. 19, p. 28

r t o m o rr o

to d a yaccordance with the Basic CSR Approaches and the Lintec Group

Suppliers

t Fo

build

CSR structure, and actively conducts its CSR activities inenwe

its company motto “Sincerity and Creativity” at the center of its

pp. 29–36
rporate value
thro
iz e c omiugax
C o m p li a n c e G
ha
ui
rou p
dm
a n t e c G i c C S R A p p r o a c d e li n g
heses
iL n BasLINTEC WAY

grmeet these stakeholders’ expectations, the Lintec Group places

GlobalEnvironment

LIP-2016

p. 18, p. 28

Many stakeholders support the business of the Lintec Group. To

We will aim for harmony
between corporate activities
and the global environment
and will strive to reduce
environmental impact.

t Explore new markets and demand by creating new
products
t Enhance the base of our research and development inorder to create new products
t Strengthen cost competitivenesst Select and concentrate our management resources

Promote strategic M&As
t Clarify the targets that are suited to a growth strategyt Strengthen the system to promote M&As

Foster human resourcest Secure and foster global human resourcest Implement continuous stratified training

Ideal Lintec Group

Company
Motto
Sincerity
and Creativity

The Way to Go “LINTEC WAY”
In fiscal 2014, the Lintec Group developed the LINTEC WAY,

Management Philosophy
For tomorrow
we build today

guidance to be followed by all Lintec people in order to move
forward in the same business direction.
What actions must Lintec employees conduct and with whatsort of vision in order to realize the company motto “Sincerity andCreativity”? Employees’ opinions gathered from interviews anddiscussions and advice from outside were incorporated into the
LINTEC WAY. It states the ideal way of being a Lintec employee.

Abiding Lintec
Philosophy

Rules fordaily activities

Five Rulesof Sincerity
Always be sincere.
Faithfulness opens
people’s minds.
Please people.
Be a giver.
Care about colleagues
and family.

Five Rulesof Creativity

Important
ValuesSupporting
the Company
Motto

Be committed until
you succeed.
Be proud of being unique.
Be resilient and takeadvantage of changes.
Think globally.
Look for connections topotential everywhere.

COMPLIANCE GUIDELINES

Five Rules of Sincerity

Five Rules of Creativity

1 Always be sincere.

1 Be committed until you succeed.

All Lintec people must always be sincere. —“Being sincere” refers tobeing honest and without pretense. To be sincere, we must not forgetthankfulness and respect for the people with whom we associate. We
must also deliver sincerity in product quality as a manufacturer.

Lintec people must always be committed to “advance.” You must
recognize that a little extra effort will go a long way. Be
meticulous. Enjoy the challenging processes you are engaged in.
Your inexhaustible interest and passion will lead to the fulfillmentof dreams throughout the world.

2 Faithfulness opens people’s mind.
Lintec people must always have a “mind to serve faithfully.” We
believe in this globalized age that the faithful communication wevalue opens people’s minds, shortens the distance between us
and helps us to move forward.

3 Please people.
Lintec people must value “thankfulness.” We believe that doing
business is receiving consideration in exchange for giving
satisfaction to stakeholders. Accordingly, we must actively listen to
the voices of customers and the general public and strive to solve
their problems.

4 Be a giver.
Lintec people must always possess a “mind of unselfishness.”
Each employee must be committed to performing his/her tasks
sincerely to “give pleasure” to all people he/she associates with.
We believe that this attitude will lead to the sustainable growth ofsociety as a whole.
* “Unselfishness” is a way of living that is defined by thinking how to“please others” first before thinking about one’s own interests.

2 Be proud of being unique.
Lintec people must always have unique points of view. It is ourrole to create new values and markets by using novel approaches
that others cannot imitate. We must be proud of this advantage.
We must actively enter undeveloped fields and deliver new
surprises and excitement to the world.

3 Be resilient and take advantage of changes.
Lintec people must advance together with the changes of thetimes. Remaining static is one of the greatest risks we face. We
must respond resiliently to changing values and environments
over time. Develop new markets where we can grow and respondto the needs of future generations by bravely making changes.

4 Think globally.
Lintec people must act “globally.” We must strive to contributeto the development of technologies on a global scale. We mustalso support social vitalization through activities that are
locally-based. Always possess environmentalconsciousness andact as global citizens.

5 Care about colleagues and family.

5 Look for connections to potential everywhere.

Lintec people must care about harmony among people. Strong
trusting relationships with colleagues and business partners will
enhance a person’s work motivation and lead to more stable andimproved performance. We care about employees as well as theirfamilies and business partners, and continue to create working
environments where people can work with comfort and pride.

Lintec people must value “connections.” We must make extra
efforts to absorb valuable knowledge and excellent technologies
and learn from others. We must promote active communications
not only within the Company but also beyond the borders
between companies and countries in order to discover potential tocreate new values.

07

CSR in the Lintec Group

Basic CSR Approaches
The Lintec Group carries out initiatives in line with six basic approaches, based on its company motto, “Sincerity and Creativity.”

Thorough implementation of
corporate ethics and compliance

Safety- and health-related activities

Improved customer satisfaction

Social contributions

Environment-friendly operations

Shareholder- and investor-oriented management

CSR Promotion System
Lintec carries out CSR activities in line with six basic CSR approaches.

Audit Office

President and CEO

The CSR Management Office, established as an organization

Corporate Strategic Officeunder the direct control of the president, strives to foster high ethicalstandards, disseminate information on CSR, and to support the

CSR Management Office

Cost Innovation Officeinitiatives of the six CSR committees. The six CSR committees, which
Safety, Disaster Prevention,and Health Committee

Social Contribution Committee

Environmental Preservation Committee

Customer Satisfaction Committee

standpoint of management.

Investor Relations Committee

officer in charge, lead initiatives with responsibility from the

Public Relations Office

Corporate Ethics Committee

have a cross-organizational membership and each of which include an

General Affairs & Personnel Division
Administration Division
Business Administration Division
Quality Assurance & Environmental
Protection Division
Production Division
Research & Development Division

As of April 1, 2014

CSR Efforts

Revision of the Compliance Guidelines
People in the Lintec Group carry a booklet of the Compliancewere distributed to all employees throughout the world. In addition,

Guidelines. They always consult the booklet in their daily businessstudy meetings for the guidelines were held in Japan. We also plan

activities to ensure the integrity of their conduct. In fiscal 2013, theto hold study meetings at overseas sites.

booklet was reviewed to improve it as a global standard by reflecting
the UN Global Compact, ISO 26000 and OECD’s guidelines for
multinational companies. The revised Compliance Guidelines tookeffect in April 2014.

Top Commitment
At Lintec, we conduct business activities while fulfilling
corporate social responsibility (CSR) based on our company
motto, “Sincerity and Creativity.” We strengthen and pursue
CSR-driven corporate activities to become a corporationthat is respected and trusted by all.

The revised Compliance

These Compliance Guidelines are the general rules thatare to be observed by all employees in the Lintec Group tocomply with legal, ethical and social standards.

Guidelines also include the

I keenly recognize the social responsibility of the Lintec
Group and am committed to take the initiative as presidentof the Company to lead in fulfilling its corporate motto andobserving these Compliance Guidelines.
It is important for you, as a citizen and as a business person,
to completely understand the Compliance Guidelines of the
Lintec Group and make appropriate decisions in good faithin accordance with the Guidelines.

LINTEC WAY, translated into

You should always carry this book of guidelines and refer
to it to make sure that your conduct is appropriate and inaccordance with the guidelines.

several languages and copies—The Way to Go—

LINTEC WAY
A policy that every employee at the Lintec Group
must consistently follow in pursuingsustainable growth of the businessCompany
Motto

Sincerity
and Creativity

For tomorrow
we build today
Five Rulesof Sincerity

Five Rulesof Creativity

Always be sincere.

Be committed until
you succeed.

Faithfulness opens
people’s minds.
Please people.
Be a giver.
Care about colleagues
and family.

Representative Director, President,
CEO and COO,
Lintec Corporation

Abiding Lintec
Philosophy

Management Philosophy

Important
ValuesSupporting
the Company
Motto

Be proud of being unique.
Be resilient and takeadvantage of changes.
Think globally.
Look for connections topotential everywhere.

COMPLIANCE GUIDELINES
Rules for daily activities
01

Study meeting in the Research Center08Lintec Group Compliance Guidelines

The UN Global Compact’s Ten Principles
An initiative* proposed to business enterprises in the World Economic
Forum in 1999.

Compliance Guidelines
Compliance is fundamental to corporate activities. The

It states that business enterprises are able to fulfill their global

LINTEC Group is committed to observing “relevant

responsibility as corporate citizens and contribute to sustainable

regulations” and “social rules” during corporate activities

growth of society by conducting business activities that incorporate

domestically and overseas.

these 10 principles.

We, the directors and employees of LINTEC, shall:
1. Continuously offer products and services that contribute to society.
2. Conduct fair and transparent transactions based on the principle of freecompetition with all business partners.
3. Comply with regulations in all aspects of corporate activities in Japan andoverseas, and conduct ourselves based on the highest ethical standards.
4. Emphasize the importance of close relations with all the persons involvedin corporate activities, such as shareholders, investors, business partners,
local communities, and employees.
5. Be actively engaged in controlling and reducing environmental burdens, as
global environmental problems are a vitally important management concern.
6. Proactively engage in activities that contribute to local and regional
communities as good corporate citizens.

●Human Rights
Principle 1: Businesses should support and respect
the protection of internationallyproclaimed human rights; andPrinciple 2: make sure that they are not complicit inhuman rights abuses.
●Labour
Principle 3: Businesses should uphold the freedom of
association and the effective recognitionof the right to collective bargaining;
Principle 4: the elimination of all forms of forced andcompulsory labour;
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in
respect of employment and occupation.

●Environment
Principle 7: Businesses should support a precautionary
approach to environmental challenges;
Principle 8: undertake initiatives to promote greater
environmental responsibility; andPrinciple 9: encourage the development and diffusionof environmentally friendly technologies.
●Anti-Corruption
Principle 10: Businesses should work against
corruption in all its forms, including
extortion and bribery.

ISO 26000

7. Maintain fair and transparent relations with political bodies andgovernments.

ISO 26000 is an international standard that defines social

8. Prevent any involvement with anti-social organizations.

responsibilities of all organizations and provides guidelines for

9. Take part in hospitality activities with modesty and within the range that
common sense allows when it is necessary as part of business activities.

fulfilling those social responsibilities. It categorizes social

10. Handle corporate information appropriately, and only disclose it atappropriate times and in appropriate ways.

of social issues around the world.

11. Handle intellectual properties securely, respect the intellectual property
rights of other companies and do not violate them.
12. Respect the individual rights and personalities of directors andemployees, treat them fairly and strive to maintain a comfortableenvironment in the workplace.
Established January 2003
Revised April 2011

responsibilities of organizations into seven core subjects, in the light

Organizational governanceFair operating practices

Human rights

Consumer issues

Labour practices

Community involvementand development

Environment

In-house CSR Dialogue Sessions
Continuing in-house CSR dialogue sessions

Participants’ Feedback

The Lintec Group has hosted various CSR study meetings at domestic
and overseas sites to deepen the understanding of CSR bystakeholders. In fiscal 2012, we started in-house dialogue sessions
where employees from various departments discussed “aggressive
CSR.” In fiscal 2013, this activity was continued. In March 2014, a
dialogue session was held by a

● I have had few opportunities to talk about the“Future Lintec” with people from other departments.
This session was a very good experience for me.
● I think the Lintec Group can gain its strength byquickly identifying social trends and making
preparation for them, not only by complying withgroup of ten female employees,

laws and regulations.

mainly from the Research Center.

● To enhance the globalization of our business, it isimportant to have opportunities to discuss
aggressive CSR with employees overseas.
Dialog session in the Research Center* Initiative: an initiative proposal

09

11

特集
Highlight

A

B

C

Beforeimplementation

D

E

F

Achieve Sustainable Business Growth by
Establishing Corporate-Wide Business Continuity
Management System (Corporate BCMS)
In Lintec, each business unit or site has established its own business continuity plan
(BCP)*1 which describes procedures to respond to unexpected natural disasters orserious accidents.
Aiming to develop a corporate-wide business continuity management system(Corporate BCMS)*2 based on these individual BCPs, we strengthen the organizationto achieve sustainable business growth.
This Highlight features our activities to date.

GH

A: Head office storage for emergency foods andsupplies
B, J, K: Disaster drills in head office
C, G: Inspections
D, E: Corporate BCMS staff meetings
F: Antiseismic reinforcement implemented at
Tatsuno Plant
H: Discussion for rule development
I: Corporate BCMS study meeting
L: Company Motto Plate “Sincerity and Creativity”
at Agatsuma Plant

I

10
J

K

L

Continuing the Business: Big Responsibility
for an Enterprise

responsibility. No single site should be excluded from the project. All

As the supply chain*3 has become complex and the business areas of

selected from various departments was formed, with a mission toa corporation have widened, the impact of a corporation on society

establish a Corporate BCMS.

departments should participate.”
Finally, in April 2013, a project team comprising seven members

has become greater. Companies in the Lintec Group manufacture“We decided that we should develop this system independently

intermediary materials for a broad range of businesses fields.

only using our staff members, without consulting professional

Therefore, were our business activities to be interrupted for any

consultants from outside. This would become a valuable asset for thereason, it would have a great impact on society. BCPs andCompany in the future,” said Maki.

establishment of BCMS to effectively operate BCPs are important andnecessary to fulfill our responsibility as a corporation.

Corporate-wide Efforts Needed for
Ensuring Business Continuity

Identifying and Separating “Causes” and“Consequences” for BreakthroughHiroyuki Nishio, who was the head of the CSR Management Office(and is currently CEO), gave a clear directive that the Corporate BCMS

“From 2009, we have developed BCPs mainly in business divisions,should be completed by the end of March 2014. Lintec also decided towith the cooperation of related departments,” says Toru Maki, thefollow ISO 22301*4, an international BCMS standard published inleader of the Corporate BCMS project team.

2012. The aim was to realize a BCMS that meets a global standard“At that time we did not have much information available inJapan about BCMS and it took considerable time for planning. Thenand to secure its objectiveness.
In the project team, Hiroki Aburaya and Takehiko Nishikawa (bothwe had the Great East Japan Earthquake. The awareness of BCP’sfrom the Environmental Safety Group, Environmental and Safety

importance was sharply heightened in and outside the Company,”

Department) were assigned with the tasks of drafting new rules,

Maki continues.

creating and managing the work schedule. But they faced difficulties

Subsequently, six business divisions designed frameworks for
BCPs. However, Sadakazu Morio of the CSR Management Office said

before long.
“To plan a BCMS, we had to ask plants and sites to do many

that there was a barrier blocking creation of more practical andthings. We had to think how those things could be done effectively

detailed plans.

without interrupting their daily operations. For example, we asked“Individual business divisions and production sites could develop

sites to perform a drill so that they could identify and check various

outlines of plans. However, to ensure the business continuity of the

problems in a single drill. We also gave instructions on theentire organization, we had to clear the walls between departments.

procedures for writing a report. But we received requests from sites

And we did not have cross-sectional rules.”that the instructions should be more accurate and easy to

Subsequently, Maki and Morio decided that all departments

understand,” says Aburaya.

within the organization must be involved to realize more elaborated

Moreover, as initially expected, the sales department faced

BCPs. Creation of BCPs should not be a goal but a BCMS would be

difficulties. “I understood their confusion because I myself was fromalso necessary to continuously review and refine the developed BCPs.

the sale field,” admits Hitoshi Sueta of General Affairs and Property
Management Group, General Affairs and Legal Department.

Starting the Corporate BCMS Project:
Involving Sales and Marketing Department
One of the obstacles was the difficulty of involving the sales andmarketing department in this project.
“Production sites already had some understanding and awarenessof BCP. But this was the first experience for sales sites” says Yoshiyuki
Yamato from the Quality Assurance & Environmental Protection
Division, who would actively participate in the establishment of the
Corporate BCMS later.
“When the CSR Management Office proposed that this should be
implemented as a corporate-wide system, my honest feeling was that
it would be tough,” recalls Yamato.
But Chairman Akihiko Ouchi, who was the CEO at that time,encouraged Maki and Yamato to proceed with the project. Ouchi said,“BCMS is an indispensable element for a corporation to fulfill its social*1 BCP: A plan developed in advance to enable the minimization of damage and thecontinuation or early resumption of business in the event that a company encounters an
emergency situation such as an accident or disaster.
*2 BCMS: stands for a Business Continuity Management System. It is a management technique
to develop a business continuity plan, based on the understanding of the current conditionsof the organization, to ensure that the businesses are continued in the event of a serious
incident (see page 19) that will or may have grave impact on major products/services of theorganization. Drills are also performed to validate the effectiveness of the BCP.
*3 Supply chain: A flow of processes of material supply from procurement of raw materials,
production, distribution and sales to delivery to end-users.
*4 ISO 22301: See page 5.

11

“In the sales department, they had hardly had opportunities tothink about BCP or BCMS, although this may differ depending on the

Conducting Drills, Follow PDCA Cycle andVerify and Enhance the Effectiveness of BCMS

background of individual persons. To receive understanding andcooperation from them, we first had to explain why BCMS is

Establishment of a BCMS will not be achieved only by desk planningnecessary. So, we focused on creating materials which were easily

and rule-making. Actual drills of various levels should be conducted.

comprehensible for them,” continues Sueta.

The results of the drills should be reviewed to validate and improve

Moreover, they faced difficulties in creating BCMS rules, too. “Because

the effectiveness of the system. “We conduct two types of drills:

we had a huge number of things to decide, just digesting them was

corporate-wide drills and site drills,” explains Toshiaki Arai of the CSR

difficult. When we discussed what actions we should take for a disaster

Management Office. In individual sites, drills were conducted bothscenario, we could assume a lot of causes. The more we discussed

daytime and nighttime. As a result, we found, for example, that each

assumptions, the more possible actions we came up with,” says Nishikawa.

employee needs to have a flashlight at hand. We were able to find aThis confusion was solved by a technique to identify and sort out

lot from site drills. With these findings, the effectiveness of the system“causes” and “consequences.”has been improved.

“We could assume a countless number of causes for businessinterruptions. But consequences resulting from those countless causes
were limited, such as ‘most employees are unable to come to the office,’or ‘materials cannot be transported.’ Because we viewed scenarios from

Flow of Emergency Report: Business Continuity Under Natural Disasters
and Other Accidents

the viewpoint of “causes,” the rules we created were too complex. But
Disaster

we finally realized that causes and consequences should be separated.

Plant/Office

Subsequently, we got information that corporations overseas actually
have adopted an approach to create two BCPs: one that addresses‘causes’ and corresponding disaster control/mitigation procedures andone that addresses ‘consequences’ and corresponding procedures to

PublicRelations
OfficeProduction
Division

Business
Administration
Division

GeneralAffairs &Personnel
Division

CSR Management
Officeensure business continuity,” explains Yamato.

Business
divisions(Corporate BCMS Office)CausesSpecific risk factors that prevent business continuity of acorporation, including, but are not limited to, earthquake, typhoon,
flood, any other natural disaster, fire, public transportation
disruption, power failure, disruption of communication lines,
terrorism, and many other risks. Planning and taking actions tocontrol and mitigate the disaster is necessary.

Consequences

Factors that make business continuity difficult. They arise as aresult of the occurrence of causes. Consequences include, but are
not limited to, injured employees, difficulty to come to office or go
home, unavailability of raw materials, shutdown of machines andfacilities, disconnected telecommunication lines and others. A
specific consequence may arise from different causes, but actions
to take to solve it are common. Planning and taking actions toensure business continuity is necessary.

Business
Administration
OfficeInformation flow
Report/communication/
consultation

Management Team
Consider whether to establish corporate
emergency headquarters

Feedback
Supplement routes

Establish corporate emergency
headquarters

Progress of Construction of Corporate BCMS
2009

Started BCP
planning

April 2013t'PSNFE$PSQPSBUF
BCMS project team

2012
Issuance of international standard(ISO 22301)

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Duplication is an essential technique for business continuity. To

BCMS Voices from Departments and Sites

ensure this duplication, Yamato says, “We had to determine, forexample, in the event of shutdown of a plant, which site will serve asa substitute production site. And if production will be outsourced to acontractor, we also have to perform testing to verify that thecontractor can really produce substitutes with equivalent quality.”
Yamato says that the formation of the BCMS Council was very
useful. “As we conducted drills and discussions, we got many opinions
and proposals for improvements. To compile and review these
opinions, the BCMS Council was formed.”
After many drills, verification of duplication, structuring oforganizations and other unified efforts by all employees in Japan, theBusiness Departments
The Industrial and Material Operations Department
formed a BCP team immediately after the Great East
Japan Earthquake. The Department createdscenario-based, resource-based and extended BCPs. It
also has planned emergency actions. By participatingin this Corporate BCMS project, the department wasable to enhance its BCP level from optimization
within the department to cross-sectional
corporate-wide optimization. We share informationand conduct on-going activities according to the
PDCA cycle.

Rikio Miki
General Manager
Admisistrative Department
Industrial and Material
Operations *development of the Corporate BCMS has reached a milestone. In
March 2014, Lintec acquired ISO 22301 certification. We are now
often asked to speak as a lecturer in BCMS seminars because we haveabundant know-how that we accumulated after a series of trials anderrors. But this is not the end of our activities.
“A BCMS is still incomplete if only some people within an
organization develop and understand it. The full-scale implementation
will start from now on,” says Arai.
“You may think that disaster control or business continuity issomething related to unusual situations. But minor abnormalities often

Sales Offices
In 2013, the Hiroshima Branch held BCMS basic study
meetings and conducted disaster-control and business
continuity drills. In conducting these drills, we realized it
is very difficult to take rational actions when we face adisaster. Based on the analysis of our actions in thesedrills, we modified our procedure manual by adding
actions that we could not expect when we first createdthe manual. We will continue to conduct fire drills, AED
training and other disaster drills. Each employee will
fully play his/her assigned role in the BCMS activities tosecure the continuity of our business.

Koichi Nomura
Team Leader, Operations
Section, Hiroshima Branchoccur in our everyday operations. If you react properly to those minor
abnormalities, you are also able to react against major accidents. It
also leads to improvement of daily operations. We realized that BCMS
is about not only creating an emergency manual but also reviewing
our everyday business activities.” concludes Nishikawa.
Maki recalls, “In developing this BCMS, we strengthened the bondwithin the project team and within the Company. Now this bondshould be extended to all group companies.”
Lintec succeeded in completing the Corporate BCMS construction
within just one year and achieved the initial goal, and the Corporate
BCMS is supported by all Lintec people. Our next goal is establishing a

Production Sites
To share the awareness of importance of BCMS
within the Kumagaya Plant, the development andimplementation of an action plan started in the plant.
Focusing on the “safety of employees” and“continuity of the business in times of emergency,”
we discussed time and time again procedures tohandle all possible risks to work out an effective
action plan. The BCMS has just started. We willcontinue modification and improvement of the plan
to realize a more robust system.

Toshikazu Oshima
Manager, Operations Section
Administration Department

corporate-wide risk management system, including group companies
in Japan and overseas.

* Rikio Miki was appointed as the president of Printec, Inc. on May 30, 2014.

2014
tFirst examinationtManagement
review

April 2014tConducted Corporate BCMS study meetingstSecond examinationtInternal audit

Acquired international
standard (ISO 22301)
certificatetTotal disaster drill

13

CSR Themes, Targets, and Performance
In order for Lintec to achieve sustainable growth together with society, the company must not only ensure legal compliance,
it must also undertake various efforts to meet the demands of society.
Committees composed of cross-organizational members matched to the company’s basic CSR approaches promote CSR activities.

Basic Commitment

Theme

Corporate Ethics

Treat corporate ethics and complianceas priority management themes andensure that every employee is aware of
their importance and practices themevery day● All employees behave as good citizens

Customer
Satisfaction

Fiscal 2013 CSR Themes, Targets, and Performance

Provide a stable supply of products
and improve quality management andservice based on the key concepts ofassuring customers of reliability andfulfilling responsibilities

with self-awareness● Aspire to be a company trusted bysociety by ensuring thoroughcompliance● Establish and implement a specificaction plan based on the Lintec Quality
Policy and Action Guidelines

Safety, Disaster Prevention,and Health

Proactively develop workplaceenvironments where people can workwith security, based on the concept of
improving employee satisfaction

Social Contributions

As a good corporate citizen of boththe local communities where we
operate and the international
community, help solve social
challenges and carry out realistic
activities that contribute to thesustainable development of societies

Investor Relations*2● Prepare for rapid response to natural

Conduct management thatemphasizes shareholders andinvestors, and improve thecorporate brandand human-made disasters● Establish a management system forensuring employee health and safety● Establish measures to prevent

communicable disease● Establish measures against long

working hours and encourage thetaking of annual paid leave● Realistic activities● Sustainable activities● Community-based activities● Increase valuation in the stock market(appropriate stock pricing) andattempt to improve corporate andshareholder value

Environmental Protection● Ensure thorough compliance● Enhance environment-related PR andeducation
As a materials manufacturer, conductcompany-wide activities in R&D,
production, and other areas based on
the principle of reducing
environmental impact and effectively
using resources

Achieved

Not achieved

Fiscal 2013 Targets● Comply with and revise management rules (information

security, personal information, business secrets, etc.)● Undertake activities based on employee proposals● Achieve concrete actions devised along the lines of theeight Action Guidelines under the concept of thecustomer satisfaction slogan, “Lintec Products makeeverybody happy!”● Minimize damage from natural disasters● Maintain and manage the occupational safety and healthmanagement system● Nurture the mental and physical health of employees● Follow up action plans of individual overseas group company● Share safety information with EM Committee*1● Implement measures to eliminate long working hours● Encourage employees to take annual paid leave● Interact with local communities● Expand and firmly continue activities● Raise employees’ willingness to participate in activities andsupport their participation● Cultivate and strengthen relationships with investors andsecurities analysts● Strengthen relationships with shareholders and recruit new

individual investors● Distribute information and strengthen communication● Strict management of legal compliance● Release more than 24 issues of Eco News● Conduct practical activities in each site

● Develop environmentally friendly products● Eight development projects that satisfy Lintec LCA Standard*3● Reduce CO2 emissions● Reduction target: 209,000 tons or less

● Reduce energy use● Reduce disposal costs for industrial waste● Ensure thorough management of● Reduce release of VOCs to the atmosphere

Status● Promote ethics through interactive participation frameworks● Conserve biodiversity

chemical substances

14

Achieved substantially● Improve the specific energy consumption by 3% (compared tofiscal 2010)● Target amount: 177,674,000 yen or less
● More than 50 self-audits conducted by suppliers● Target for atmospheric VOC emissions: 980 tons or less

*1 EM stands for Emergency Management, an organization to ensure the safety of employees stationed or dispatched in overseas sites.
*2 IR stands for Investor Relations and represents corporate activities through which companies provide shareholders and investors with corporate information, including management and financial information and business results.
*3 LCA (Life Cycle Assessment): A method for comprehensively assessing effects on the environment by calculating items such as the amount of energy and water input, the amount of raw materials used, and the amount of CO2
and hazardous chemical substances emitted throughout a product’s lifecycle.

We strive to fulfill our CSR with all employees in the Lintec Group
proactively thinking, taking the initiative and conducting activities witha sense of unity. To achieve this, each employee should fulfill his/her
personal social responsibility (PSR) but it is also important to extend
their PSR into Lintec’s CSR. In April 2014, based on our corporatemotto, we established and announced the LINTEC WAY, a form of

guidance that shows the way Lintec should approach in a simple
manner, to share Lintec CSR among all employees. The ten rules
supporting the Corporate Motto are true not only to our CSR, but also
to PSR. We conduct CSR activities with a sense of unity to achieve thesustainable growth of the Lintec Group.

Toru Maki General Manager of CSR Management Office

Main Activities in Fiscal 2013
● Continued the “Rinri Kawaraban” ethics news column and published abooklet● Provided ethics training through e-learning● Provided compliance education in the rank-based training● Provided information security education in all sites in Japan (about 1,700

employees, in 41 sessions)

Comment from Officer in Charge
Corporate Ethics Officer

Kenji Kobayashi(Director, Senior Managing Executive Officer)
As the globalization of businesses progresses, the corporate ethic
is also expected to meet the world standards. All employees strive
to grasp changes in society and reflect the expected corporate
ethics in their acts.

Customer Satisfaction Officer● Provided e-Learning courses “Customer Relation Tool in the Pocket,”

Makoto Iiumi“Statistical Technique: Standard Deviation and Normal Distribution,” and“Design Review”● Conducted in-house survey regarding human resource development(Director, Managing Executive Officer)● Continued implementation of occupational safety and health management

system
● Implemented training concerning guidelines for overseas business trips● Weekly distribution of overseas safety information● Provided mental health care education and awareness-rising activities● Surveyed the current status of and promoted the taking of annual paid leave● Conducted health care activities, with payment of health-promoting allowance

All employees work together with a sense of unity by following a
CS slogan. We also work together with customers to further
improve customer satisfaction.

Safety, Disaster Prevention, and Health Officer

Fiscal 2013 Performance
Corporate
Governance
Practicing Sincerity
pp. 16–17
Organizational
governance/
Fair operating
practices

Social Report
Providing Value toCustomers
Cooperating with Suppliers
pp. 18–19†
Human rights/
Consumer issues/
Fair operating practices

Koji Koyama

Together with
Employees(Director, Senior Managing Executive Officer)

pp. 20–24

We implement various activities to create better working
environments where all employees in the Lintec Group are healthy,safe and motivated.

● Employees volunteered to help with reconstruction after the Great East Japan†

Human rights/
Labour practices†● Implemented community clean-up activities

Koji Ichihashi

Together with
Local Communities● Participated in a campaign against local organized crime in Itabashi(Director, Senior Managing Executive Officer)

p. 25● Took initiatives to support persons with disabilities

As a member of the local community, we continuously conduct
activities that meet the social expectations. We also consider how
the Lintec Group can provide solutions for some social problems.

Earthquake reconstruction volunteer activities (10 employees, 4 times)● Made monetary donations for the victims of the Great East Japan Earthquake● Hosted plant and facility tours at five business sites (853 visitors)

Social Contribution Officer

Community
involvementand development†● Employees made blood donations (611 employees)● Held more than 150 IR meetings and accepted interviews with institutional

investors and securities analysts in Japan● Visited a city in Europe to meet with institutional investors at a total of 17
companies● Participated in 3 IR events in Japan for investors from outside Japan and held
IR meetings with a total of 18 companies● Enhanced the provision of information through a shareholder newsletter andIT website

IR Officer

Communicatingwith Stakeholders

Hitoshi Asai

p. 28

(Director, Vice President Executive Officer*4)
We will continue IR activities such as providing accurate
information promptly and fairly, in order to further strengthen
relationships of trust with shareholders and investors.

Organizational
governance/
Community
involvementand development†● Conducted mutual internal audits to confirmed environmental compliance ateach site● Achieved the target by releasing 27 issues

Environmental Protection Officer*5● Each site participated in local community activities

Yoshiyuki Yamato● Achieved target by developing 14 products(Managing Executive Officer)● Achieved the target with about 203,000 tons

As a material manufacturer, we must sincerely face environmental
issues. We will continue our efforts to reduce environmental
impacts in our business activities. We will also develop new
products that contribute to solving environmental problems fromthe LCA perspective.

● Achieved target with a 7.8% improvement compared to fiscal 2010
● Achieved target with ¥176,903,000

Environmental
Reportpp. 29–36
The environment†● Achieved the target, with 61 self-audits conducted by suppliers● Achieved the target with about 900 tons
*4 On April 1, 2014, Hitoshi Asai was appointed as Director, Vice President Executive Officer, General Manager of Administrative Division, General Manager of Corporate Strategic Office, in charge of General Affairs & Personnel Division.
*5 On April 1, 2014, Koichi Kimura was appointed as Environmental Protection Officer.
† One of the seven core subjects of ISO 26000. This guide is referenced when reporting Lintec’s CSR activities.

15

Corporate Governance

Organizational governanceAs expressed by the Lintec Group’s company motto, “Sincerity and Creativity,”
corporate ethics and compliance are themes of paramount importance inbusiness management. They are positioned at the foundation of CSR in thegroup’s efforts to strengthen its management structure.

Practicing Sincerity
Corporate GovernanceCompliance

The Lintec Group regards the basics of corporate governance to be thepractice of thoroughgoing compliance, maximum managementtransparency, awareness of corporate ethics, rapid decision-making,and efficient administration of business operations. The Lintec Groupaims to increase its corporate value by continually improving its
corporate governance.
Corporate Governance Framework
The introduction of one-year terms for directors has helped to clarify
their responsibilities. In June 2011, Lintec adopted an executive officer
system, separating directors who perform management decisionmaking and executive officers who administer business operations.
The company’s two internal and two external audit andsupervisory board members always attend meetings of the board of
directors and management meetings and listen to the opinions
expressed. They operate with the internal Audit Office andindependent auditors to audit the overall work of the directors.
Through meetings, the members share the results of their audits ofoperations and strengthen the checks on directors’ decision making
and the appropriateness and effectiveness of executive officers’
administration of business operations.

Corporate Governance System

General Meeting of Shareholders
DecisionmakingReporting

Guidance/
promotion

CSR Management
Office● Corporate Ethics
Committee● Investor Relations
Committee● Customer Satisfaction
Committee● Environmental
Preservation
Committee● Social Contribution
Committee● Safety, Disaster
Prevention, andHealth Committee
Operational
implementation

16

Appointment/dismissal

Board ofDirectors(directors)

President

Management
meetings

Account/
operational
auditing

Appointment/dismissal

Audit &
Supervisory
Board

Cooperation

Cooperation(directors andexecutive officers)

Administrative,
marketing,production, andtechnical
divisions
Domestic andoverseassubsidiaries

Account
auditing
Audit OfficeInternal
auditing(internal
control)Internal
controlauditing

Independent Auditors

Appointment/dismissal

Fair operating practices

All employees at the Lintec Group are committed to disciplining
themselves based on the corporate motto of “Sincerity andCreativity.” In February 2014, we conducted a compliance survey with
officers and managers (response rate: 86.8% in 2014, compared with
88.8% in 2013 and 68.6% in 2012).
A “compliance
Compliance survey response rate
self-check sheet”
and “compliancetraining materials”
are published in the
Lintec intranet,available to all
employees. Employees use thesematerials to check their conduct.
They also use the materials forcompliance learning activities intheir departments.

86.8%
Compliance education in the Agatsuma Plant

Global Surveys on Human Rights and Labor Standards
In January to February 2014, the Lintec Group conducted all-site survey
to check labor conditions and human rights in all group companies andsites. It was confirmed that all sites comply with local and regionallaws and regulations, that the Lintec Group Compliance Guidelines
are well understood by employees and that Lintec employees work ina healthy and safe working environment where their fundamental
human rights are respected. We will continue this regular survey every
year to understand our current conditions, and improve them.
Compliance with Antitrust Law & Prevention of Corruption
In October 2013, we created our “Antitrust Law Compliance Manual”
and distributed copies to all officers and managers in the Lintec
Group. Copies were also distributed to employees in the Business
Administration Division. Educational sessions based on this manual
were provided in the Iidabashi Office to sales representatives (4 times,
about 190 participants). A questionnaire survey was conducted after
the educational sessions. The General Affairs and Legal Departments
replied individually to questions asked by participants in the survey toensure understanding of all employees.
In December 2013, we issued an internal legal newsletter“Antitrust Law.” In January 2014, an e-learning program wasprovided to educate employees on the antitrust law.

Revision of the Compliance Guidelines
At the Lintec Group, we issue a booklet of code of conduct to enhance
the compliance awareness of each employee. In April 2014, thisbooklet, “Compliance Guidelines,” was revised to improve it to amore global code of conduct. Guidelines
related to the supply chain, CSR management
and human right issues were reinforced.
Information security and SNS (social
networking services) issues were also added toreflect recent social trends.
→ See page 8 for details.

Voice 01

Helpline
Lintec has a helpline (internal reporting system) for employees toobtain consultations on legal violations and other workplace worries.
In April 2008, Lintec added a third-party corporate lawyer to thehelpline system, to facilitate prompt consultations and investigations.
Efforts have been made to raise internal awareness of the helpline inorder to encourage its use, including mentioning it in the Compliance
Guidelines. The goal is to quickly identify and solve problems.

Environmental
Report

The Lintec Group strives to prevent problems by identifying all possible
risks associated with company management and working at making
improvements throughout the group according to the degree ofurgency and importance. We also operate the Risk Assessment
Committee, consisting of the general managers of each division, withthe objective of strengthening the risk management system.

Information Security Management
Lintec conducts internal audits in each department based on detailed
regulations on information security and an internal audit checklist. In
March 2013, Lintec Group Social Media Policies*3 and the Social
Media Usage Rules were established to clarify basic principles andprohibited activities for the private use of social media established.
Subsequently, to provide more specific rules and explanations, we
added the Social Media Guidelines and the Case Studies of Social
Media Problems to the Lintec intranet publications. In June 2013, ane-learning program on social media use was also provided for
employees to strengthen their understanding and awareness of social
media use.

Social Report

Risk Management→ See pages 10 to13 for details.

Corporate
GovernanceFostering Sense of Ethics
Since 2006, Lintec has published Rinri Kawaraban ethics news column
on its intranet. The column features a short haiku-like poem with anadditional explanation to illustrate standards for ethics and conduct.
The aim is to foster even better ethics and adherence to theCompliance Guidelines. As of April 1,
2014, we have published anaggregate total of 185 poems on
the column.
The poems are also compiled andpublished once a year as a booklet.
Volume 7 of the booklet was issued
in April 2014. The poem compilations
are also shown to suppliers andcustomers as an example of Lintec’s
CSR initiatives.

Business Continuity Plan (BCP)*1
Lintec has diligently worked on development of BCPs so that it cancontinue supply of products to customers or quickly resume its
business in the event of a major earthquake or other disaster.
In April 2013, we began consideration of a business continuity
management system (BCMS)*2, a management system aimed tooperate these BCPs more effectively and more practically. To ensure
the validity of actions and procedures to be taken in the event of adisaster, we implemented exercises and drills and internal audits. In
March 2014, as a result of these continual efforts to improve the BCP
system, Lintec obtained the ISO 22301:2012 certification, aninternational BCMS standard.

Activities promoted by CSR Working Group
Daniel MacKay, Corporate Compliance Director, Madico, Inc.

It is my pleasure to lead the CSR Working Group,comprising employees in Woburn (Massachusetts)
and St. Petersburg (Florida). This working groupconducts CSR activities related to corporate
governance, ethical education, compliance, risk
management, the environment, health, safety,
procurement, personnel and labor, and social*1 BCP: See page 11.
*2 BCMS: See page 11.

asic
contributions by setting a goal to achieve the basic
principles of ISO 26000 in 2014. The goal also
includes biological diversity. To pursue this goal,
we formed a project team. We enjoy working on
this field and share the knowledge we acquired as
members of the Lintec Group.

*3 Social Media Policy: a guideline for using Facebook, Twitter and other SNS services forbusiness purposes17Social Report

Consumer issues

The Lintec Group strives to provide a stablesupply of products, to ensure thorough quality
management, and to improve its services inorder to meet the expectations of customers.

Providing Value to Customers
Quality Assurance
The Lintec Group adheres to the basics of manufacturing and values
quality, environment preservation and safety in conducting its productdevelopment, production and sales, aiming to obtain trust from all
stakeholders. Based on its management system that follows
international standards, including ISO 9001*1, ISO 14001*2 andISO 22301*3, Lintec continues efforts in quality control, environmental
responsibility and business continuity in its business activities toachieve quality that delivers satisfaction to the customers. WEB
Quality Assurance System
Major production sites of the Lintec Group in and outside Japan haveobtained the ISO 9001 certification. To further strengthen theorganization, we are also pursuing acquisition of the certification insales offices and development sites and the integrated certification fora group of relevant sites. We are strengthening the unified andtrilateral (sales, development and production) management system toensure speedy and meticulous responses to customers’ needs.
Acquisition of ISO 9001 certification

Number of sites certified

FY2011FY2012FY2013212221Note) The decrease in fiscal 2013 was due to the consolidation of the Mishima Plant and the Komatsushima Plant.

strengthen customer satisfaction by disclosing these pieces of
information in a comprehensive way. For example, in the area ofadhesive products, we make technical data available to customers foreach product item, describing the characteristics, constituents,
physical properties and other data. As our products have many users,
we make data of about 1,200 items available to respond to thecustomers’ requests. Lintec will continue efforts to deliver satisfaction
to customers through its products.
Data available for

1,200

about

items

Preventing Quality Incidents
The Lintec quality management system (QMS) follows the principles of
ISO 9001, especially the design review*4. Our design review adopts
FMEA*5, FTA*6 and statistics-based SPC*7 techniques systematicallyto predict the risks of accidents and take proper preventive measures.

Ratio of quality accidents to the number recorded in fiscal 2003
(Fiscal 2003 = 100%)

(%)
120
100

Improving Customer Satisfaction
The Lintec Group discloses product information in various ways toprovide customers with a sense of safety. For example, we issue
safety data sheets (SDS) and reply to customers’ questions based on
the results of our chemical examinations. Since our products are used
in a wide variety of industries, the types of product information
required by customers are also extensive. We believe that we canVoice 02

80
60
40
20
0

100

2003

30

27

25

20

18

2009

2010

2011

2012

2013

(FY)

Achieve quality delivering satisfaction to customers
Lim Eng Sneah, QA Executive, Technical Department, Lintec Industries (Malaysia) Sdn. Bhd.

In order for Lintec Industries (Malaysia) Sdn. Bhd.
to further enhance customer satisfaction, we
have an action team that implements activities toenhance the product quality and to makecontinual improvements. The team conducts
monthly meetings to discuss quality problems
related to products and production processes and18

new improvement targets. The team also confirms
whether customer complaints were properly
rectified, whether preventive measures haveworked effectively, and how potential risks canbe prevented. The corporate slogan “Lintec
Products make everybody happy!” is our goal
and commitment.

*1 ISO 9001: the international standard for quality management systems*2 ISO 14001: See page 3.
*3 ISO 22301: See page 5.
*4 Design review: a method for checking and evaluating materials under development(specifications, design documents, etc.) from different standpoints such as the

manufacturing and sales divisions. Design review is defined in the Japan Industrial
Standard (JIS) and ISO 9000 series standards.
*5 Failure mode and effect analysis (FMEA): a method for systematically analyzing
potential malfunctions*6 Fault tree analysis (FTA): a method for analyzing the causes of malfunctions using atree diagram

Social Report

Fair operating practices

Cooperating with Suppliers
Fair Transactions
The Lintec Group works to establish trustful relationships with all
suppliers because they are “partners who should grow together with
Lintec.” The Lintec Group has a basic policy for fair and transparent
transactions based on the principle of free competition between all
suppliers. The door is open to all companies during the supplierselection process. We choose suppliers based on fair and impartial
evaluations, including evaluation of their efforts for environmental
protection, to ensure Lintec’s legal and ethical compliance in its
procurement activities.

Conflict Minerals
Lintec recognizes that conflict minerals, mined to fund armed conflict,are a serious social problem. The company investigates and ensuresthat no conflict minerals are present in any of its raw materials. Lintec
will continue to conduct procurement management that avoids theuse of conflict minerals.
BCP with Suppliers
The ability of suppliers to continue their businesses in the event of a disasteris critical for Lintec to secure the stable supply of its products to customers.
Lintec conducts evaluation of the suppliers to determine their business
continuance ability. In fiscal 2013, for certain products, Lintec conductedexaminations of suppliers to confirm the following statuses: (1) the stock
volumes of the raw materials for Lintec, (2) procurement routes for the
raw materials, (3) disaster control measures taken in their production
sites and facilities, and (4) availability of a substitute production site.
Lintec also conducted examinations of some suppliers to confirm
whether they had BCPs and a management system to implement the
BCPs, and whether they had organizations and procedures to copewith an incident*8. All our suppliers will be subject to these
examinations in the future.

Environmental
ReportVoice 03

Green Procurement
Under the Lintec Green Procurement Policy, we are committed to
procurement that reduces environmental impact, by thorough chemical
substance management for raw materials, parts, and secondary materials.
When we purchase a new material from a supplier, we ask the supplier tocooperate in our examination to check whether the material contains any
substance regulated by Lintec. We also ask suppliers to cooperate in our
ingredient examination whenever we add a new regulated substance. To
quickly and accurately conduct these examinations, it is important to havethorough understanding of the suppliers and to promote environmental
protection activities and control of chemical substances by the suppliers.
To implement green procurement, Lintec will continue to enhancecommunication with suppliers. WEB

Social Report

2,794

The Lintec Group strives to engage in fair, highly
transparent transactions, always pursuing seamlesscooperation and mutual benefit with suppliers.

Corporate
Governance

CSR Procurement
In accordance with the Lintec Procurement Policy, Lintec reminds
suppliers in various occasions to maintain thorough CSR activities,
including measures to ensure human rights, occupational health andsafety, product quality and safety, information security, and corporate
ethics. The Lintec Group has transactions with about 500 material
suppliers. In fiscal 2013, we asked the top 49 material suppliers to
respond to a questionnaire and all of them responded. The
CSR-related questionnaire had questions to confirm the suppliers’ CSR
status in 13 areas, including whether they respect human rights anddo not use child or forced labor.
This supplier survey will be continued in the future to confirm theirstatus and to improve the procurement by Lintec based on the resultof the survey. WEB
Suppliers

Human rights

Supplier quality and environmental audits
Hisashi Hashizume, Manager, Quality Assurance Department, Head OfficeSince 2006, the Lintec Group has been conducting
planned quality and environmental audits at its
suppliers, with the objectives of strengthening themanagement of supply sources and building good
partnership with the suppliers. As of March 2014,

200 audits were completed (70 suppliers, 190
quality audits and 10 environmental audits). These
audits will be continued to strengthen therelationship with the suppliers and to ensure
delivery of safer products with higher quality.

*7 SPC: Stands for Statistical Process Control. It is a technique to detect changes in theprocesses by taking and examining a few numbers of samples very frequently.
*8 Incident: a situation which cause or may cause business interruption, disturbance, loss,
emergency or hazard

WEB

See the CSR website for more information on the following:
Lintec Group Quality, Environmental and Business Continuity Policies;
Lintec Procurement Policy; Lintec Green Procurement Policy;
Lintec Lumber Pulp Procurement Policy; and Green Pulp Way

19

Social Report

Labour practices

Together with Employees
Creating a Rewarding Workplace (Human Rights / Employment)

Respecting Human Rights and Diversity
The employees of the Lintec Group are working together based on thecompany motto, “Sincerity and Creativity.” To ensure that all
employees may find their work equally rewarding, the group respects
the diversity*1 of every employee and prohibits any kind of
discrimination, including that based on race, creed, gender, education,nationality or age. Lintec joined the UN Global Compact, which seeks
to eliminate the use of child andRate of local employees
forced labor, in 2011. The groupaims to continue its growth basedon mutual understanding andrespect between all employees.

95%

Employment■ Number of employees by gender
Male
Male employees:

Female

4,303

934

325

87%

82%

18%

13%

Total employees:

5,237Managers:

Percentage
of total 418
710
68
4
male
19%
17%
7%
1%
employees* Scope: All employees in the Lintec Group (Overseas: as of December 31, 2013,
Japanese: as of March 31, 2014)* Scope of black figures: Lintec Corporation (as of March 31, 2014)

Percentage
of total
femaleemployees

Respect for Human Rights in Labor Management and Education
Compliance forms a foundation for the activities of the Lintec Group,and the Company thoroughly adheres to both social rules and relevantlaws and regulations in and outside Japan. This also applies to therecruitment and treatment of employees. Labor management isperformed in accordance with relevant laws. Unfair discrimination,
child labor, and harassment are prohibited. Education on humanrights is also provided. In fiscal 2013, the “UN Global Compact and
CSR” training was provided to 35 new employees.
Employment of Persons with Disabilities
Lintec provides employment opportunities to persons with disabilities. The
full-year employment rate at Lintec for persons with disabilities in fiscal
2013 was 1.79 percent, which was below the legally mandated rate of
2.0 percent. Lintec will strive to achieve the legally mandated rate in fiscal
2014, by encouraging each site to employ persons with disabilities. WEB

Japanese employees

1,756

91

95%

5%

Job Return Program
In April 2010, Lintec introduced a job return program. Under thisprogram, the company re-hires employees who had retired for
personal reasons such as childbirth, childcare, nursing care of a family
member, or other family circumstances such as the transfer of spouses
to a different work location. WEB
Employment of Older Persons
Lintec continues to offer employment to its retirees. All interested
retirees are re-hired, in principle. In fiscal 2013, the Company re-hired
15 of 23 retirees. Rehired employees are working vigorously, making useof the skills and experience they have developed over many years. WEB■ Employees at group companies outside Japan
Local employees

The Lintec Group has been carrying out a variety of
initiatives to support all employees who perform their jobs
with energy and inspiration.

Female employees:

2,211Managers:

Total employees:

1,847* Scope: All overseas group companies (as of December 31, 2013)* Japanese employees hired locally are included in the number of local employees* Japanese employees indicates employees transferred from Japan

Voice 04

For work and family balance of all employees
Masami Mitsui, Team Leader, Administration Section
Business Administration Department, Ina Technology Center

Lintec has established the Committee to Empower Womenin the Workplace to improve working environments forfemale workers. In this Committee, I am in charge of the
production division. I talked with female workers in
production sites to collect information on the current
conditions of the workplaces for female workers and theiropinions. Each production site has its own atmosphereand history. It was very meaningful that I could hear anumber of valuable opinions from many female workers.
Child care and nursing care are important issues for
employees. We must find ways to balance the work andthe family regardless of whether you are a woman orman, married or single. We are committed to creating aworking environment where all employees can equally
utilize support programs and colleagues are supportive toemployees with family issues.

*1 Respecting diversity: By respecting diverse characteristics that exist among people andgroups, it is possible to generate more original ideas, solve problems using diverse
perspectives, and allow people to display their full potential by appointing the best
person for each job.

20

Human rights

Management Labor Relations
At Lintec, the labor union is called Lintec Forest. Labor-management
consultations are conducted with an attitude of respecting eachother’s standpoint and a commitment to resolving issues throughdiscussion. Constructive discussions are also carried out at regularlabor-management consultations to advance the business. WEB

Programs(persons)

FY2012FY201320

1

Family care time off

2

2

3

Accumulated time off

55

51

61

Childbirth leave

13

16

16

Childcare leave

22

19

26

Child nursing care time off program

11

10

11

Shorter hours/flex time

11

10

21

Paid social contribution time off

23

26

26

(total of 41 days)(total of 54 days)(total of 50 days)

Voice 05

With the aim of developing human resources that contribute to thecompany and society, Lintec has introduced company-wide rank-based
training programs to develop its human resources. These programs
enable all employees with diverse values to achieve personal growth
and a sense ofParticipants in company-widerank-based training programs
accomplishment. They
help boost employees’skills and support each
person’s self-motivatedcareer planning. WEB

426

employees

Environmental
Report

FY2011

Family care leave program

Company-wide Rank-based Training Programs

Social Report

Program users

Measures against Working Long Hours
Lintec strives to make appropriate personnel appointments and toensure equal sharing of workloads in order to prevent the harmful
effects of working too many hours. The company has introduced
systems for carrying out work efficiently and systematically, such as
no-overtime-days in each workplace and flextime programs. Supervisors
also manage overtime hours carefully to help employees avoid
excessive strain on the body and mind. The company has also adopted
an attendance system that enables detailed labor management.

Corporate
GovernanceWork-Life Balance
Lintec is working to help employees to balance their professional andpersonal lives by creating workplace environments where employees
are able to perform their jobs with peace of mind, and exercise theirfull abilities. Lintec offers an accumulated time-off program that canbe used either for long-term treatment of an employee’s own illness or
injury or for caring for a family member. There is also a paid social
contribution time-off program that allows employees to participate inlocal volunteer activities. In April 2013, Lintec extended theapplication of the child care leavefrom a child below the age of three
to a child before school age. The
period of the family care leave wasalso extended from 93 days to two
years (730 days).
The Company continues to
who took paid leaves to participate increate systems that help employees Employees
volunteer activities for the earthquake disasterreconstruction
work with peace of mind. WEB

Mental Health Measures
The Lintec Group has introduced a precautionary Employee Assistance
Program (EAP)*2 that provides employees with opportunities to obtaina mental health checkup once a year. Through this checkup,
employees understand their own stress level, which is useful for
personal mental health management. The manager of each business
unit receives the results and analysis for employees in the unit, andtakes appropriate improvement measures as needed. In fiscal 2013,
3,357 employees underwent the checkup, a figure representing
96.6% of all employees in the Group. The Lintec Group has also set
up an employee support hotline to which employees and their families
can personally contact and talk confidentially with a specialist about
their worries, including physical and mental health, childcare, nursing
care, legal issues, or personal finances. WEB

The social contribution time-off program sparked
my interest in social activities
Tomio Hatanaka, Section Chief, Human Resources Department, Head Office

In July 2013, Lintec initiated a three-day volunteer
program as part of the Great East Japan
Earthquake support project. I volunteered in thisprogram and prepared young acorn trees which
will be planted along the seashores to regenerate
the flood barrier forest that was lost to thetsunami. The company’s social contribution

time-off leave gave me a great chance toparticipate in this program. In the quake-strickenarea near the seashore where I visited, there werefew buildings. I felt the area was still far fromreconstruction. I am continuing other volunteer
activities, together with people from othercompanies who also participated in this program.

*2 Precautionary EAP: an employee program that aims to improve productivity throughthe creation of comfortable workplaces and by focusing on precautions for healthy
employees in addition to addressing the concerns of employees who already have ahealth issueWEB

See the CSR website for more information on the following:
Employment Rate for Persons with Disabilities, Number of Job Return Program Users,
Employment of Older Persons, Status of the Lintec Forest, Employee Assistance
Programs, Overview of Precautionary EAP System, Fiscal 2013 Rank-based Training
Schedule, and Fiscal 2013 Training Details and Numbers of Participants21

Individual Education Programs
Quality Education
Manufacturing of high-quality products is essential to enhance customer
satisfaction. To achieve this, the Lintec Group operates a quality
management system (QMS) and an environmental management system(EMS) and conducts related activities. Employees must understand thesesystems and enhance their awareness to effectively continue these
activities. Accordingly, the Company provides employees with
opportunities to participate in related seminars and distance-learning
programs provided by outside parties. In-house education is also actively
provided, including e-learning programs. In fiscal 2013, Lintec provided
a total of 27 in-house QMS education sessions and quality e-learning
programs. A total of 5,683 employees took these programs. WEB
Total participants in in-house QMS
sessions and quality e-learning

5,683

Lintec Environmental & Safety Information site

Self-motivated Education System
employees

Environmental Education
Lintec Corporation and Tokyo Lintec Kako provide ISO 14001 awarenesseducation programs to employees. Each office creates its own education
plan suited to the conditions of the office, including the number of
employees and frequency of sessions. These education programs use
graphs and illustrations, and the “Lintec Environmental and Safety
Information” published on the intranet as education materials tofacilitate the learning by participants. Education and training on
biological diversity and chemical substance management, and training
and drills for emergency actions are provided and implemented
respectively on different days. By providing training on different
environmental topics with different schedules, the employees’ awarenessis continuously reinforced. E-learning programs are also provided to
inform employees about Lintec’s activities related to biological diversity
and management of chemical substances used in Lintec products. WEB
Participants in environmental education in fiscal 2013
●Head Office: 291 ●Agatsuma Plant: 716 ●Kumagaya Plant: 401●Chiba Plant: 252 ●Tatsuno Plant: 367 ●Shingu Plant: 410●Komatsushima Plant: 257 ●Mishima Plant: 472 ●Niihama Plant: 39●Ina Technology Center: 166 ●Research Center: 348●Tokyo Lintec Kako: 142

Voice 06

Lintec Environmental & Safety Information Site
As part of the Company’s environmental education for employees,
Lintec operates the Lintec Environmental & Safety Information site on
its intranet to provide to employees updates of information related tothe environment, ISO 14001 (activities conducted by Lintec andintroduction of the website administrative office), regulations ofchemical substances (such as REACH*1 and information related toother regulations), energy-savingand safety and health. During fiscal
2013, the information was
renewed a number of 12 times. The
website will be regularly updated tofurther strengthen the employees’
environmental awareness.

Self-development Correspondence Training Courses
Twice a year, Lintec offers self-development correspondence training
courses to interested employees. The Company subsidizes a part ofthe cost for those who complete a course within a given time frame.
There is a wide variety of course content available, such as
management, business skills, computer skills, foreign languages,
liberal arts, and qualifications certificate programs. The Company willcontinue offering these courses to encourage employees to keep
learning and growing.
Self-development correspondence training course participants
FY

FY2011FY2012FY2013

Total number of participants

337

276

254

Completion rate (%)

61

59

59

Language Training
To develop employees who can excel on a global stage, Lintec has
introduced a language-training program as a support system forself-motivated study. Employees who want to receive language
training apply for the program. Participants are selected by theselection committee from among applicants who obtained arecommendation from their immediate superiors and division generalmanagers. In fiscal 2013, thirteen employees received the language
training. Although the training time varies depending on each
employee’s language level, the aim is for participants to reach theirtarget level with about 100 to 150 hours of training.

Becoming aware of the world and gaining
an ability to hold dialogue
Satoshi Hiruma, Corporate Strategic Office, Head Office

I’ve been taking English communication training
since fiscal 2013. In the dialogue-type training, I
practice conversations in various scenarios. I
learned often-used phrases and I’ve received
instructions from teachers about what waswrong with my expressions, so now I can speakin English more naturally. Before taking thistraining, I felt awkward when I spoke withforeigners in English. But the training got rid of
my feeling of embarrassment. I want to play arole in international business in the future byusing the communication skills I acquired
through this training.

*1 REACH Regulation: a chemical substance regulation in the EU on the “Registration,
Evaluation, Authorization and Restriction of Chemicals.” Registration is required whenexporting a chemical substance into EU states in quantities of one metric ton or more
per year. Notification must also be submitted to the authorities when a chemical

22

substance falling under the category of “candidate for required authorization” ispresent in a product at more than 0.1 percent of the mass of the object.

Social Report

Labour practices

Together with Employees

The employees of the Lintec Group are engaged in avariety of activities so that everyone can work in safety
and with peace of mind.

Safe Workplace Environments (Safety and Disaster Prevention)

Occupational Safety●Meetings of the Safety and Health Committee ●Patrols ●Safety education●Safety training and drills ●Inspection and measurement schedule●Measurement of work environment conditions ●Medical checkups●Internal audit ●Management review

Voice 07

Committee

Scope

Activities

Safety and
Health Committee

Plants and Research Center

Implement plans
Share information on disaster conditions,
implementation of safety education,
results of equipment inspections,findings by patrols and improvement status

Health Committee

Head Office and branches
that have a sales division

Discussions on health issues, safe operations
and disaster control activities

Accidents Resulting in Absence from WorkIn fiscal 2013, four occupational accidents (resulting in lost work days)
occurred at Lintec Group companies in Japan, leading to 245 days ofabsence from work. Since these occupational accidents with lost workdays involved workers who had fewer years of experience in the
Company, Lintec has strengthened the safety education provided to
employees. Two accidents (resulting in lost work days) were caused by
improper handling of product rolls. We will continue to clarify thesafety rules to reduce accidents to zero.
Occurrence of accidents resulting in absence from workFY

FY2011FY2012FY2013

Number of accidents
resulting in absence from work

2

6

4

Number of days ofabsence from work

31

361

245

Accident sites

Lintec andLintec andPartner companies partner companies partner companies

Environmental
ReportActions included in the annual safety and health plan

Committees for safety and health in workplaces

Social Report

Annual Safety and Health Plan
The Lintec Group develops an annual plan for safety and healthactivities. The Group manages health and safety through theimplementation of PDCA cycles.
In fiscal 2013, Lintec carried out mutual safety audits, fire
prevention patrols, and top management patrols. Individual plants
also carried out patrols by members of the plant’s top management,
managers, and the union, as well as employee volunteer patrols. The
Company has expanded the scope of the safety mailing list to sharesafety information with all sites and executive officers by distributing
the minutes of the Safety and Health Committee meetings.

Safety and Health Committees & Health Committees
The Lintec Group holds monthly committee meetings to discuss safety
and health in the workplace.
In fiscal 2013, to implement the safety management on acompany-wide scale, the Company expanded the scope of the mailing list
for distributing disaster flash reports and minutes of committee meetings.

Corporate
GovernanceOccupational Safety and Health Policy
In 2010, the Lintec Group established the Lintec Occupational Safety
and Health Policy. Since then it has been carrying out businessactivities based on an occupational safety and health management
system (OSHMS)*2.
At the corporate-wide level, a mutual safety audit plan is created.
A fire preventive patrol plan is also created. At individual plants,
annual safety and health plans are created. Plan-do-check-act (PDCA)
cycles are used for these, based on the OSHMS. The Safety
Consideration Committee, consisting of members engaged in safety
activities in plants and members of the group-wide Safety Secretariat,
develops and reviews group-wide safety rules. In fiscal 2013, theCommittee added new safety rules, including safety inspection of new
equipment, installation of safety fences and safety covers, andprevention of fire accidents. WEB

Prepare for emergency with knowledge and practiceZeeroh Madsa-i, Assistant Chief, Safety Office, Lintec (Thailand) Co. Ltd.

In Lintec (Thailand), we conduct a general
firefighting drill every year. In 2013, the drill was
conducted on November 15. In the morning, we
listened to a lecture on fire and learned what
extinguishing techniques should be used for
different types of fire causes. In the afternoon, we

had a fire evacuation drill and also practiced how
to use fire extinguishers and fire hoses. The target
time for completing evacuation was five minutes.
We also practiced how to carry an injured person
on a stretcher. Fire evacuation drills are also
carried out four times a year.

*2 OSHMS: Stands for Occupational Safety and Health Management System.
It is a voluntary management system operated by a business operator with an aim to
improve the safety and health level of its business sites.

WEB

See the CSR website for more information on the following:Technology Familiarity Workshops, CSR Study Meetings and Information
Security Education, Lintec Safety and Health Management System Organizational Chart,
Lintec Occupational Safety and Health Policy, and Overview of the Lintec Occupational
Health and Safety Manual

23

Striving to Be Accident Free
The Lintec Group has a system for recognizing plants in Japan with acontinuous record of no occupational accidents. On January 27, 2014,
the Tatsuno Plant achieved continuous accident-free man hours*1 of
1 million hours. The safety awareness of all employees has beenenhanced by the safety-first policy, risk assessment and safetymeasures taken for facilities, and practice of 5S*2 in TIP activities*3.
As a result, accident-free operation has been continuing for about 23
consecutive months from April 24, 2012. We should not be conceitedby this achievement, but further
improve our activities and work
together to continue this record ofcontinuous accident-free operation.

Employees at Tatsuno Plant and the award plaque

From April 24, 2012 to March 31, 2014
Achieved continuous accident-free man hours (Tatsuno Plant)

1,105,000

hours

Top Management Patrols at Production BasesWith a slogan of “Safety-First,” Chairman Ouchi (former CEO) carriedout top management patrols to visit and inspect plants worldwide.
Chairman Ouchi also talked with employees while touring aroundproduction floors to check the conditions of the workplaces, including
safety of the operations, and implementation of 5S (such as tidiness of
the workplaces). Based on the results of these top management
patrols, various improving measures were implemented in production
sites to further enhance the quality of the on-site safety management.

Disaster Control in BCMS
In planning prevention and mitigation of disasters in its business
continuity management system (BCMS), Lintec conducts risk
assessment of disasters, placing top priority on saving human lives. All
Lintec sites examine their operations and facilities to identify, analyze
and assess risks of damages that may be caused by different types ofdisasters. It is stipulated in the BCMS rules that if it is found thatdisaster control in a site is not
sufficient, the site should plan andtake sufficient measures. Moreover,the concreteness and validity ofthese disaster control measures arechecked and improved by carryingout disaster drills.
→ See pages 10 to 13 for details.

Carrying an injured person in an emergency drill

Continuous accident-free hours achievements in fiscal 2013
(April 1, 2013 to March 31, 2014)

Date achieved

Business site

April 1

Chiba Plant/Shingu Plant/
Ina Technology CenterNo accident
in the year

May 20Research Center

One million

May 28

Shingu Plant

One million

June 8

Mishima Plant

0.75 million

June 18

Ina Technology Center

One million

July 23

Chiba Plant

0.75 million

August 2

Agatsuma Plant

0.5 million

August 23

Tatsuno Plant

0.75 million

October 30

Research Center

1.25 million

December 2

Agatsuma Plant

0.75 million

January 27

Tatsuno Plant

One million

2013

2014

Voice 08

Achievement (hours)

Emergency Drills
Each Lintec site carries out emergency drills as part of the BCMS. In
addition, procedure manuals relating to business continuity are revised
as needed, and emergency stocks are reserved at individual sites toreduce disaster-related risks.
On October 16, 2013, a corporate-wide safety check drill was
conducted, assuming an “earthquakeof intensity 6 lower.” Twenty-foursites in Japan participated in the drill
with about 3,600 employees (Lintec
employees and employees frompartner companies). Lintec willcontinue this type of drill several
times each year. WEB
Emergency stocks at Head Office

We practice an exercise to save human lives
Masayuki Kumagai, Assistant Branch Manager, Sendai Branch

At the Sendai Branch, we conducted a life-saving
exercise in February 2014. We reviewed the office’s
BCP and the procedure manual for an emergency,
and practiced the cardiopulmonary resuscitation
technique and how to use the AED*4 to check theskills that each employee will need in the event of an
emergency. All employees of the Sendai Branch

24

participated in this exercise and practiced the quick
life saving procedure using the cardiopulmonary
resuscitation technique and an AED. All of us in the
Sendai Branch know well that life-saving is the top
priority as we experienced the Great East Japan
Earthquake three years ago. We will add
improvements and continue this exercise in the future.

*1 Continuous accident-free hours: total number of working hours with no occupational
accidents (accidents not resulting in absence from work, accidents resulting in absencefrom work, and accidents during commuting) involving Lintec or partner company
employees working full time at a business site
*2 5S: A slogan for workplace improving practices; “S” is the first letter of Japanese words“Seiri, Seiton, Seiso, Seiketsu, Shitsuke” (meaning organizing, clearing up, cleaning,cleanliness and discipline).

*3 TIP: Stands for Tatsuno Innovation Project. The Project was formed in October 2009 to
improve the workplace conditions in the Tatsuno Plant.
*4 AED: Automated External Defibrillator. An electronic medical kit that automaticallysends an electric shock to the heart in a ventricular fibrillation condition to try to
restore a normal rhythm

Social Report

Community involvement and development

Together with Local Communities(Community Participation)

Fukushima Foods & Product Fair

Voice 09

Total number of participants in community
beatification/clean-up activities

2,499

employees

Environmental
ReportSupport for Persons with Disabilities
In September 2013, Lintec invited persons with disabilities and theirhelpers living in Tokyo’s Itabashi City (107 people in total) to aprofessional baseball game at Tokyo Dome—Hokkaido Nippon Ham
Fighters vs. Fukuoka Softbank Hawks. This marked the seventh such
event arranged by Lintec. The company received smiles and many
words of thanks from participants who expressed their enjoyment of
the game and a strong desire to participate again next year. Lintec
will continue this kind of social contribution activity that brings joy tolocal residents.

Beautification Projects and Cleanups
The Lintec Group carries out neighborhood beautification projects
and cleanups around all its factories. The Chiba Plant holds a Zero
Litter Campaign around the Midori Daira Industrial Park where theplant is located, while the Kumagaya Plant conducts an Arakawa
Riverside Cleanup along a nearby
river. The Komatsushima Plant
removes litter from the Yokosu
shoreline as part of its Seto
Inland Sea Restoration effort. In
fiscal 2013, a total of 2,499
employees in Japan participated
Community clean-up activity by Chibain these activities. WEB
Plant employees

Social Report

Young tree pots prepared in the Watari Green
Belt ProjectCommunity Safety Activities
The Kumagaya Plant has long participated in the Kumagaya Business
Operators’ Association of Cooperation with Police. The plant now
serves as a vice president company of the Association. The
Association promotes close cooperation between business operatorsand the police to prevent crimes, juvenile delinquency and improve
the traffic safety in the community. Lintec will continue to participate
and lead this activity to ensure the safety of the community and toeliminate violence.
Corporate
GovernanceOngoing Disaster Support
The Lintec Group has been making relief donations as an ongoing
activity to support recovery after the Great East Japan Earthquake. In
fiscal 2012, the company began participating in the Watari Green Belt
Project to regenerate tidewater control forests on affected coastlines,
sponsored by the Global Compact Japan Network. In fiscal 2013, a
total of ten Lintec employees volunteered to help with the project
activities on four occasions. The Head Office also hosted a Fukushima
Foods & Product Fair to support the recovery of Fukushima by
economic activities. The company will continue various forms ofreconstruction support activities in the future.

The Lintec Group is supported by society and local
communities. In recognition of this support, thegroup is engaged in various social contribution
activities to fulfill its role as a corporate citizen. WEB

Social contribution activities in the Netherlands
Kazuhiro Kusakari, General Manager, Lintec Europe B.V.

In cities around the Dutch city of Amsterdam,
more than 80,000 elderly people live alone. No
family member or friend visits them at Christmas
or during the holidays. At the Enma Foundation,
staff members visit these elderly people, talkwith them, help with their shopping, holdrecreational events, send flowers on special days
and perform many other social activities. Lintec
Europe makes donations to the Foundation every
year to support their activities, as part of its
social actions for the community.

WEB

See the CSR website for more information on the following:
Regular Safety Council Meetings, Joint Fire Drill Focusing on Actions for Toxic Chemical Leakage,
Emergency Drill in Fiscal 2013, List of Lintec Group Social Contribution Activities, Lintec
Indonesia’s Social Contribution Activities, Group Blood Donation, Planting, Sponsoring of Local
Festivals, Participation in Community Activities, Energy-saving by “Green Curtain,” Developmentof Next-generation, Community Beautification and Clean-up Activities in Fiscal 201325

Highlight2

Meet the Expectations of Community
as Corporate Citizen with Local Social Actions
As a business supported by community and society, the Lintec Group
continues steady activities to support various social action.

Fureai Concert

This Highlight section features one of the disability aid activities that
Lintec has been pursuing in Tokyo’s Itabashi City, where its head
office is located.

Planning and Conducting
an Unique Event Together
with Itabashi City Office andCommunity Volunteer Organization
A corporation cannot continue its business activities
without the understanding of the community andsociety. In carrying out CSR activities, the Lintec
Group sincerely listens to the voices of people inthe community to meet their expectations.
The Lintec Group conducts its social activities
with the following three principles: “realistic,”“sustainable” and “community-based” activities.
For example, Lintec has hosted the “Lintec Fureai
Concert” according to these principles. With theaim to “connect with people by music,” this musicalevent has continued since 2010. Persons withdisabilities and their helpers in Tokyo Itabashi City
where Lintec has its head office, people fromneighboring areas, Lintec employees and theirfamilies are invited as performers and audience.
“In the very first planning stage, we were
determined to be actively involved in planning andcarrying out a unique event,” says Akihiko Bito who
is the chairman of the Lintec Social Contribution
Committee and was in charge of the planning of
this event.
“We co-sponsored the event with the
Itabashi City Office, and Lintec employees werepersonally engaged in the arrangements for thevenue, the program planning and publicity
activities. We were committed to plan a uniqueconcert so that the performers and the audiencecan share the joy of music. The jazz band members
included some Lintec employees. From the Itabashi“Hohoemi-no-Kai” association of parents ofchildren with Down syndrome, the member
children performed a sign language dance andplayed hand bells,” continues Bito.
For persons with disabilities and their families
it is often difficult to participate in a music event as
there are many hurdles to cross. In fact, many of theparticipants in this event said that they had nevereven been to a concert before.
“It was not easy to plan this event. Every year,
we repeat trial and errors to make the event a
happy experience for the participants. But when I
saw smiling children swaying happily to the rhythmof the music, all my fatigue disappeared,” says Bito.
In planning and conducting this concert, Lintec
employees personally interacted with people from avariety of circumstances and backgrounds. It was avaluable experience and opportunity for them todeepen their understanding of diversity*.

To Meet the Expectations ofCommunities Around the World
The music concert is just an example of many of thevolunteer activities conducted by the Lintec Group.
Local offices and sites of the Lintec Group in Japanand overseas conduct various social activities fortheir local communities, such as support for local
events and beautification and clean-up projects.
According to its policy of maintaining close
connections with the community, the Lintec Groupis committed to implement CSR activities globally tomeet the expectations of “communities”
throughout the world.

Children from “Hohoemi-no-Kai” dance withsign languageChildren from “Hohoemi-no-Kai” handbell performance

Planning and Implementation of Ac

Invitation to a Ball Game
Lintec’s community-based social activities extend beyond theFureai Concert.
For example, Lintec has invited persons with disabilities livingin Tokyo Itabashi City and their helpers to a professional
baseball game since 2006.

Employees welcomed guests*Diversity: Diverse characteristics that exist among people and groups

Akihiko Bito
Assistant General Manager
Human Resources Department
Chairman of Social Contribution Committee

Social Contribution Committee members

Employees handed out box lunches to guests

Welcome speeches by Vice Itabashi City Mayor Yasui (left)
and President Ouchi (currently chairman)

26

ctivities

Participants

We enjoyed the event, which was very encouraging
for families with disabled children.
I participated in the Fureai Concert with mydaughter in fall 2013. I’ve never participatedwith my daughter in this kind of musicalevent before. I was little bit worried that theperformance would not be very interestingfor children because the band was a jazzband. But as they also played cartoon songs,
my daughter and I could enjoy theperformance. I was also very proud of myMrs. Tae Ideand her daughter
Kotonodaughter and her performance. She played thehand bell and danced a sign language dance
proudly in front of such a large audience. It isvery encouraging for families with disabledchildren that a company takes initiative inproviding this kind of opportunities to interact
with society. I hope Lintec will continue thisactivity in the future.

The hall was packed with an audienceof around 700

Participants

Employees welcomed the audience

Invitation

Cooperation in planning,and provision of an event venue

Communication beyond the barrier ofdisabilities is a valuable opportunity
for promoting mutual understanding
The “Hohoemi-no-Kai” is anorganization for children with Down
syndrome, persons with disabilities
and their families. Since the start of
the Fureai Concert in 2010, Lintec
has invited our members to theevent. It is a wonderful event tolisten to live performances, and it isalso a valuable opportunity for ourmembers to communicate with Lintec
employees, their families and people
in the neighborhood. In daily life, theinteraction that children withdisabilities have with others is often
limited to their families and helpers.
This concert encourages children withdisabilities to connect with society
and it also promotes mutual
understanding between the disabled
and the non-disabled. We are very
grateful to Lintec for hosting thisgreat event.

Akiko Saito
Representative, Hohoemi-no-Kai(Itabashi Association of Parents ofChildren with Down Syndrome)

Koichi Kaneko
Section Chief, Disability Welfare Section
Itabashi City Welfare Division

Inspired by free-spirited ideas of a private company
Itabashi City in Tokyo promotes development ofa better community by self-effort, mutual aid
and public support. The disability aid activities
should also be promoted not only by the Ward
Office but also by collaboration between
community members, including citizens,companies, NPOs and volunteer organizations.
The Fureai Concert that the Ward co-sponsoredwith Lintec is one of these great collaboration

efforts. Providing an opportunity to enjoy a live
performance to persons with disabilities, who
often face difficulties in participating in amusical event, is a great idea that we, at theWard Office, could not come up with. We areinspired by the free-spirited ideas of Lintec suchas these. I hope we continue this valuable
relationship and collaborate with Lintec inrealizing a livable ward for every citizen.

27Social Report

Organizational governanceCommunicating with Stakeholders
Customers
Exhibiting at Exhibitions in and outside Japan
In order to communicate with evenmore customers, Lintec actively
participates in exhibitions held inand outside Japan. In fiscal 2013,
Lintec took part in a total of 34
exhibitions and received valuable
feedback on its products andLintec exhibited in SEMICON Japan 2013
technologies. WEB
Suppliers
Offering the Iidabashi Office for Meeting
The Lintec Group places an emphasis on strengthening
communications with suppliers and related associations. As part ofthis effort, Lintec offered its Iidabashi Office as the venue for aseminar of the Japan Federation ofLabel Printing Industries in March
2014. The seminar wasparticipated in by about 80
members of the Federation. The
active session was also live
broadcast via the Internet.
Seminar in the Iidabashi OfficeCommunity involvement and development

To better understand and meetthe expectations of society, theLintec Group works to maintaina dialogue with its stakeholders.

Employees
Publication of the Community Magazine
The Lintec Group publishes a quarterly magazine, LINTEC, as a tool forcommunicating with its stakeholders. An English version and two
Chinese versions (simplified and traditional characters) of themagazine are also available. The magazine is distributed to all group
employees as well as customers, suppliers, retirees, the media, andgovernment offices. Group companies Madico and Lintec Korea eachissue their own monthly newsletters in PDF format, which are also
useful for promoting good communication in the workplace.
CSR Communication
In fiscal 2013, Lintec invited Mr. Toshihide Natori, Secretary of Global
Compact Japan Network to speak at
the training session of Lintec new
employees. He lectured about the“UN Global compact and CSR.” CSR
study meetings were also held in
Lintec sites and group companies inJapan. A total of 1,065 persons
Lecture in new employee training
participated in these meetings.

Shareholders and Other Investors
Local Communities
Regeneration of Forest Reserve Along Chiba Coastline
The Lintec Group conducts various activities by listening to opinions ofpeople in the community. To meet the expectations of the local people,
the Chiba Plant works with the Chiba Greenery Promotion Committee
to regenerate the forest reserves on the eastern Chiba coastline
damaged by the tsunami in the Great East Japan Earthquake. In April
2013, employees of the Chiba Plant
planted 2,200 young trees in theforest reserve. They also
participated in the removing of
weeds and supplemental
planting*1 afterwards. Lintec willcontinue to listen to the voices ofWeed removing in Yoshizakihama, Chiba
the community. WEB
Media

Active Promotion of IR*2 Activities
Lintec carries out various IR initiatives with the aim of achieving
appropriate share pricing and increasing corporate value. For
institutional investors and securities analysts in Japan, the Company
holds IR meetings and accepts media interviews each quarter. For
institutional investors outside Japan, Lintec offers telephone
conferences and participates in IR events arranged by securities
companies, while making regular overseas visits to promote theirunderstanding of Lintec. In order to provide information to individual
investors and shareholders, Lintec continually enhances its IR website,while also publishing a quarterlyshareholder magazine. Once a
year, a reader survey is includedin the magazine, and thefeedback received is used to
improve the magazine’s content
and Lintec’s IR initiatives.

Media Relations
In addition to distributing news releases to various media outlets
concerning new products and events, the company welcomes requests
for interviews as well as articles written by Lintec representatives. In
fiscal 2013, the company issued about 20 news releases and granted
about 80 interview and writing requests.

*1 Supplemental planting: Additional young trees are planted in places where previously
planted young trees died.

28

http://www.lintec-global.com/ir/*2 IR: See page 14.

Environmental Report

The environment

Environmental Management
Lintec Group Quality, Environmental
and Business Continuity Policy

Internal Environmental Auditing

The Lintec Group newly established the Quality, Environmental andBusiness Continuity Policy, by adding a business continuity policy to
the former “Lintec Group Quality and Environmental Policy.”
According to this policy, Lintec Group conducts environmental
preservation activities with more concrete goals, including numericaltargets for energy usage and CO2 emission. WEB
Lintec Medium-Term Environmental Targets (fiscal 2014 to 2016)
1.6% improvement from the previous year
(per-unit of production)

Electric power consumption

0.2% improvement from the previous year
(per-unit of production)

Waste discharge

0.1% reduction from the previous year

Production water usage

2% reduction from the previous year
(per-unit of production)

auditors

Biodiversity Conservation Initiatives
As the destruction of the natural environment and the loss of
ecosystems have progressed in recent years, the world is now facedwith a biodiversity conservation crisis. The Lintec Group has
incorporated biodiversity conservation into its Quality, Environmental
and Business Continuity Policy. According to this policy, the Group has
conducted its biodiversity preservation activities since fiscal 2013, led
by 22 sites that acquired the ISO 14001
global integrated certification. Lintec willcontinue various activities, such as
educational seminars, to promote thebiodiversity preservation.

Lintec Eco News forcommunicating information
on biodiversity

Environmental
Report

The Lintec Group is pursuing acquisition of the global integrated
certification*3 for ISO 14001. With the inclusion of Lintec Industries(Sarawak) in Malaysia in September 2013 and Lintec Advanced
Technologies (Taiwan) in March 2014, integration of nine overseas
group companies has been completed so far. The integrated certification
now includes 22 sites: Head Office, 10 plants in Japan, Research Center,
Tokyo Lintec Kako and these nine overseas group companies. The Lintec
Group will continue group-wide environmental protection activities topursue integrated global certification for ISO 14001.

164

Social Report

Integrated Certification forEnvironmental Management

Lintec conducts internal audits and mutual audits of its business sites,in order to confirm proper implementation of the Environmental
Management System and legal compliance in these sites. The Group is
working to develop more lead
Lead auditors in charge ofauditors*4 who can conductsite mutual audits
mutual site audits, andtrained 16 new lead auditors
in fiscal 2013, bringing thetotal to 164.
Corporate
Governance

CO2 emissions

Voice 10

Under the slogan, “We have to broaden our scope when working
to support the environment. There is only one earth,” Lintec has
established an environment management system and is carryingout a variety of environmental protection initiatives.

Community-based biodiversity conservation activities
Tetsuo Shioya, Assistant General Manager, Production Department, Shingu Plant

The Shingu Plant in Hyogo conducts monthly
community clean-up activities to conserve thebiodiversity of the community. We clean up theneighborhood of the office, including the river andrice fields. In May 2013, we hosted an educationalseminar entitled “Looking into Climate Change,
Biodiversity and Life from the Hikami Corridor.”
Employees of the Shingu Plant also participated in

the rice planting event (May) and harvesting event(September) hosted by an NPO of Tatsuno City
(Hyogo Prefecture) “Tatsuno Society for Nurturing
Red Dragonflies.” The aim of this activity is tocreate an environment where the larva ofdragonfly can grow. We will actively continuecommunity-based biodiversity activities.

*3 Integrated global ISO 14001 certification: ISO 14001 certification covering multiple
business sites worldwide as a single organization*4 Lead auditor: an auditor certified to perform mutual site auditsWEB

See the CSR website for more information on the following:
Major Commendation for Environmental Activities, Major Exhibitions Lintec Participatedin during Fiscal 2013, Plant/Facility Tours in Fiscal 2013, Environmental Compliance,
Lintec Group Quality, Environmental and Business Continuity Policies

29

Environmental Report

The environment

The domestic Lintec Group is committed to carrying out
various environmental activities to mitigate global
warming, climate change and other environmental issues
that impose risks on the continuity of its business.

Fighting Climate Change
Efforts in Manufacturing
Status of Compliance with Japan’s Energy Conservation Act
Energy use by the entire Lintec Group in Japan*1 exceeds 1,500 kl ofcrude oil equivalent each year. As a result, the Group was designateda “Specified Business Operator,” pursuant to the provisions of the Act
on the Rational Use of Energy (“Energy Conservation Act”) in Japan,
and is required to improve its energy use per production unit by
1 percent per year. In fiscal 2013, the Lintec Group in Japan
implemented a variety of energy-saving measures. These included
effective operation of production facilities, management of the air
conditioning system, use of more LED lighting, management ofcompressed air, and capturing and utilizing waste heat.

In fiscal 2014, Lintec aims to reduce its CO2 emissions by
1.6 percent and its energy usage by 0.2 percent over fiscal 2013, on a
per-unit of production basis.
Total energy use (crude oil equivalent)
Purchased electricity

Voice 11

(kl/tons)
0.70

0.37

0.36

0.35

0.35

120
100

0.60

99

96

61

91

92

93

58

54

56

80
60

0

0.50
0.40

55

40

0.30
0.20

.0
36

38

38

38

37

2009

2010

2011

2012

2013

0.10
0
(FY)

Note: Fuel means kerosene, Bunker-A oil, liquid natural gas (LNG), liquid petroleum gas (LPG), and utility gas.

CO2 emissions(1,000 tons CO2)

FY 2013target: 209

250
200

182

182

183

1990

2009

2010

169

184

203

150
100
50
0

Total Energy Use and CO2 Emissions
In fiscal 2013, total energy use (crude oil equivalent) for the Lintec
Group in Japan increased by 1.2 percent, compared to fiscal 2012, to
92,800 kl. This increase was due to the increased production volume.
However, energy use per unit of production improved by 0.0057 kl perton (1.65%) over fiscal 2012 to 0.3454 kl per ton.
In fiscal 2013, the CO2 emitted by the Lintec Group was
202,700 tons, achieving the target CO2 emission of 209,000 or lesstons for the year.

Basic unit (energy usage/production)

140

20

Energy Savings Promotion Committee
To comply with the Energy Conservation Act, the Lintec Group in
Japan collects monthly data on energy consumption of individual sites
under the direction of the Lintec Energy Savings Promotion
Committee. Based on these data, individual sites conduct theirenergy-saving activities. In fiscal 2013, the Committee discussed
measures to reduce power consumption during summer and reduce
fuel usage and other energy-saving issues. The measures discussed by
the Committee were notified to individual sites to improveenergy-saving activities at all business sites.

Fuel(1,000 kl)

2011

2012

2013

(FY)

Notes: 1. The amount of CO2 emissions is calculated by applying a CO2 emission coefficient to the amounts ofelectricity and fuel used.
2. The CO2 emission coefficient for fiscal 1990 is the value specified in Article 3.1 of the Enforcement Orderfor the Act on Promotion of Global Warming Countermeasures in Japan as revised in December 2002.
The CO2 emission coefficients for fiscal 2009 and thereafter are the values specified in the same Order,
as revised in March 2010. For the purchased electricity coefficients Lintec uses the emission coefficientsprovided by the power companies that supply electricity to the facilities concerned.
3. The emissions shown above are CO2 emissions from fossil fuels.

CO2 reduction activities to achieve annual target
Kazunori Hashimoto, Team Leader, Power Plant Section, Kumagaya Plant

Saitama Prefecture requires certain business
operators to submit a CO2 emission reportcertified by a third certifying organization. In the
Lintec Group, this requirement applies to the
Kumagaya Plant and the Research Center. In
November 2013, both sites received examinations
by a certifying organization for their CO2 emission

volumes in the reference years (three years
previously designated). By these examinations,
their emission volumes were determined. We also
set an annual target for CO2 reduction. We arecontinuing our CO2 reduction activities to achieve
this target.

*1 Lintec Group in Japan: Lintec Corporation and its sales offices; Tokyo Lintec Kako Inc.;
Osaka Lintec Kako, Inc.; Printec, Inc.; Lintec Service, Inc.; Lintec Commerce, Inc.; andRenri, Inc.

30

*2 Ton kilometers: a unit of measurement representing the volume of goods transported,
determined by multiplying the ton weights of goods by the distance of transportation.
One ton kilometers means that one ton of goods has been transported one kilometer.

Waste-Heat Boiler for Efficient Energy Use
The Doi Plant and the Komatsushima Plant have used waste gas
treatment units (RTO type) to treat volatile organic compounds (VOCs)
generated in the plants. These units have waste heat boilers. Since
waste steam is collected andreused, CO2 emission can be
reduced. Similar systems were
installed in the Chiba Plant in
September 2013 and in the
Shingu Plant in December 2013as part of efforts to further reduce
Waste-heat boiler installed in
CO2 emissions.
the Chiba Plant

Efforts in Distribution

CO2 emissions

Transportation volume(10 million ton-kilometers)(1,000 tons CO2)

15.0

12.0
9.1

8.8

8.1

8.1

9.5
9.0

10.0
5.0
0.0

6.0
11.0

11.8

10.9

10.9

11.7

2009

2010

2011

2012

2013

Voice 12

New Product for Higher Air-Conditioning Efficiency
WINCOS REFTEL ZC05G NX/ZC06T NX
Lintec manufactures and sells WINCOS window film for buildings, withenergy-saving and shatterproof features. In February 2013, newmodels of WINCOS series “WINCOS REFTEL ZC05G NX/ZC06T NX”
were introduced on the market. By applying the WINCOS film on
windows, the solar radiation fromoutside is blocked and heat inside
the building is maintained. The
product can provide excellent
solar insulation throughout theyear. It blocks 99% of UV rays
and also prevents shattering of
WINCOS REFTEL ZC05G NX/ZC06T NX
window glass.
applied to building windows

3.0

Environmental
Report20.0

Developing Products That Help Reduce Environmental Impact
The Lintec Group has positioned environmental and energy businesses
as an important focus. Some of the main products are window films
with superior heat insulation and film base label materials made of
the same material as plastic containers. The high insulating window
films will reduce consumption of electricity and other energies. The
labels made of the same material as plastic containers will promote
recycling and reuse of plastic containers on which the label is
attached. Lintec is committed to development of products that help
reduce environmental impact and save energy. It will also continue
reduction of environmental impact in the designing process. WEB

Social Report

CO2 emissions and transportation volume

Guidelines for Environmentally Friendly Products
In February 2010, Lintec established guidelines for the development of
new environment-friendly products, incorporating the concept of
LCA*3. Based on these guidelines, Lintec developed 14 products infiscal 2013, exceeding the target of 8 products. In September 2013,
Lintec established guidelines for the development of “self-declaredenvironment-friendly products” in accordance with ISO 14021*4
Lintec will continue to follow these guidelines to develop
environment-friendly products.

Corporate
Governance

Lintec is a “Designated Shipper” under the Revised Energy
Conservation Act in Japan because it consigns the transport of morethan 30 million ton-kilometers annually*2. As a Designated Shipper,
Lintec submits an annual transport-related energy conservation plan
to the government, in accordance with this Act.
In fiscal 2013, CO2 emissions
from transportation increased byabout 2.4% from the previous
year due to the increased
production volume. However,energy use per unit of sales
decreased by about 0.7%. Lintec
will continue to improve its
Kumagaya plant makes effort to
reduce transportation frequency
transportation efficiency. WEB

Product Development Initiatives

0.0
(FY)

Act against global warming in our backyard
Te-Wei Chiang, Engineering Section, Administration Department
Lintec Advanced Technologies (Taiwan), Inc.

In Lintec Advanced Technologies (Taiwan), Inc., we
conduct environmental conservation activities. In
addition to operations that comply withenvironmental laws and regulations, we also makeenvironmental efforts in the back office, including
power-saving, improving the recycling rate of officewaste and reduction of paper use. We set thetemperature of the air-conditioning system to
26.5–28 ˚C, and put up posters with power-saving
and water-saving slogans to enhance employees’
awareness. We will continue these activities andpromote visualization of legal requirements. We will
act against global warming by doing what we cando in our daily operations in the office.

*3 LCA: See page 14.
*4 ISO 14021: an international standard for “Environmental labels and declarations—Self-declared environmental claims (Type II environmental labeling).” A business
operator sets its own standard and may place environmental claims on the labeling ofa product which satisfy that standard.

WEB

See the CSR website for more information on the following:
Solar Power Generation, Energy Consumption in Physical Distribution, Efforts to
Reduce CO2 Emissions/Fuel Shift to LNG, Reduction of Lighting Power/Lintec (Suzhou)
Tech Corporation, Use of Environment-Friendly Adhesive in Labeling Material

31

Environmental Report

The environment

Reducing Waste andWater Usage

In order to help realize a recycling-oriented society, the Lintec Group is
working to reduce waste. It is also striving to save water, reuse waste water,while complying with the effluent control regulations and improving thequality of effluent generated.

Amounts of Waste Generated and Effectively Used

Water Usage and Water Conservation Measures

In fiscal 2013, the amount of waste generated, including
manufacturing loss, was 30,100 tons. The total waste output was
12,360 tons. Of this waste output, 11,520 tons were recycled byoutside recycling companies and the remaining 840 tons were
properly disposed of by waste disposal companies. The final landfill
disposal rate*1 for fiscal 2013 was about 0.3%, which was higher
than the target (0.2% or less). However, Lintec has continued toachieve “zero emission”*2 (final landfill disposal rate of 1.0% or less)since fiscal 2007. From fiscal 2014 to 2016, Lintec is aiming for a
0.1 percent reduction in the waste generated, compared to eachprevious year.

In fiscal 2013, Lintec used 6,934,000 tons of water. Of this amount,about 93 percent was used by the Kumagaya and Mishima plants,
which are Lintec’s papermaking facilities. These two plants madeefforts to reduce water usage, resulting in a decrease of about two
percent from the previous fiscal year. Their water usage per unit ofpaper production decreased by 4.5 tons per ton compared to fiscal
2012. As a water conservation measure, the papermaking division is
reducing water usage in each process. Improvement of piping andmeasures to prevent water leaks were also implemented. In addition,
it is attempting to reduce water use and effluent by reusing recovered
water. From fiscal 2014 to 2016, the division aims to reduce its water
usage per unit of paper production by 2 percent compared to eachprevious year. WEB

Fiscal 2013 waste flow

Water usage (Kumagaya and Mishima Plants)

Waste effectively used internally: 10,830 tons

Water usage

Waste
generated:
30,100 tons
Actual waste
disposed:
12,360 tons

Total waste
recycled:
29,260 tons

Waste effectively used externally: 11,520 tons

3.4
25
6.3
15

Total waste
processed externally:
840 tons

Waste plastic

Waste oil

Sludge

Other

31.2
4.3
5.7
1.6

29.2
3.7

30.1

4.2
5.2

5.4

5.9

29.3

3.5

1.5
4.4

5.9

1.7
5.1

1.6
5.3

1.4
4.9

13.7

13.7

13.1

13.2

14.4

2009

2010

2011

2012

2013

10
5
0

75.0

Voice 13

58.6

57.7

55.7

58.4

6,479

6,953

6,664

6,560

53.9

10,000

50.0
6,427
25.0

0

0.0
2000

29.3

100.0

5,000

Waste paper

35

20(tons/tons)

11,883

Waste generated

30

20,00095.3

15,000Waste incinerated: 740 tons
Final landfill disposal: 100 tons

(1,000 tons)

Water usage amount/paper production tonnage(1,000 tons)

Valuable waste sold: 6,910 tons

(FY)

2009

2010

2011

2012

2013

(FY)

Reducing Effluent and Improving Effluent Quality
The total amount of effluent discharge by Lintec in fiscal 2013 was
6,666,000 tons. About 94 percent of this (6,235,000 tons) was
released from the Kumagaya and Mishima plants. These plants are
striving to reduce water usage and effluent discharge by improving thepipe line washing process during the papermaking. They will continue
to renovate the water treatment facilities to further improve theeffluent quality. WEB

Our waste recycling effort received a city award
Toshihiro Iguchi, Manager, Plant Engineering Section, Tatsuno Plant

The Tatsuno Plant is seriously implementing 3R(reduce, reuse and recycle) initiatives to which allplants in the Lintec Group are committed. Our
plant also makes leaf molds from branches andweeds clipped in the pruning of the trees on the32

plant site for reusing them in the gardening of theplant. Moreover, we recycle and convert
combustible waste materials into steam. These
efforts were recognized and we were given anaward by Tatsuno City.

*1 The final landfill disposal rate is a value found using the following formula: Final landfill
disposal rate = Final landfill disposal amount/Amount of waste generated × 100.
*2 Zero emission: Lintec’s standard is a final landfill disposal rate of one percent or less.
*3 PRTR (Pollutant Release and Transfer Register): a system for ascertaining, aggregating,and publishing data on the amounts of chemical substances released and transferred.
The system is based on Japan’s Act on Confirmation, etc. of Release Amounts ofSpecific Chemical Substances in the Environment and Promotion of Improvements to
the Management Thereof.
*4 PCB (polychlorinated biphenyl): The Act on Special Measures concerning Promotion of
Proper Treatment of PCB Wastes (PCB Special Measures Law) mandates the proper
storage, management, and disposal of wastes containing PCBs.
*5 REACH Regulation: See page 22.

Environmental Report

The environment

Reduction of Environmentally
Hazardous Substances
PRTR*3 Compliance

Reducing VOCs (volatile organic compounds)

In fiscal 2013, Lintec used eight substances that are subject to PRTR
reporting. The total quantity of PRTR chemicals was 7,542 tons.
Toluene accounted for the largest portion of this amount, at 7,464 tons,
down 332 tons from the previous year (7,796 tons). Emissions oftoluene into the atmosphere were 477 tons, down 6 tons from theprevious year (483 tons), and the transferred amount was 569 tons,
down 234 tons from the year before (803 tons).
Fiscal 2013 emission and transfer of toluene

Lintec plant
Exhaust processing
equipment

Quantity
eliminated:
6,418 tons
(93% elimination
rate)

Manufacturing processes
for release paper andadhesive products

Note: Elimination rate = eliminated amount/(handling amount - transferred amount) ×100

Quantitytransferred(treated aswaste):
569 tons

Proper Storage and Management of PCB*4

Voice 14Complying with Regulations Concerning
Chemical Substance Management andEnvironmental Preservation
Under the REACH Regulation*5, companies are required to provide
information about using substances of very high concern (SVHC). As of
December 2013, the list of SVHCs includes 151 substances. Lintec
implements measures to comply with the REACH Regulation,
examines substances with environmental impact in its raw materials
and conveys the necessary information to customers. The
management of substances contained in the products will become
more important in the future. Lintec will improve the efficiency ofmanagement of these substances, comply with relevant regulations
and make efforts to reduce the use of regulated substances andfacilitate switchover to alternative substances. WEB

Environmental
ReportLintec securely stores and manages waste containing PCBs in
accordance with the law. In fiscal 2012, it was reported that Lintec
has 38 PCB-containing units of waste. Of these, six units containing
low-concentration PCBs were properly disposed of in July 2013. In a
subsequent inspection in March 2014, seven more units were found toinclude PCBs. Of these 39 units, nine are low-PCB concentration units(three) and fluorescent light ballasts (six). They are securely managed
and stored in accordance with relevant laws. WEB

71%

Social Report

Toluene flow

Transitioning to Solvent-free Release Agent
Lintec is working on switching to a solvent-free release agent for its
release paper and solvent-free adhesive for printing-related adhesive
products to reduce the amount of organic solvents it uses. In fiscal
2013, the percentage of solvent-free release paper (production basis)
was 53 percent. The percentage of solvent-free printing-related
adhesive products (sales basis) was 71 percent. The company has
carried out measures to reduce atmospheric VOC emissions from twoangles: product design and use of equipment to treat exhaust gases.
The switchover to solvent-free agents has been completed for themain products, and the installation Switchover tosolvent-free agentsof exhaust gas treatment(fiscal 2013 sales basis)equipment has also been
completed. Numerical values willcontinue to be monitored, and theCompany will continue reducing its
environmental impact. WEB

Corporate
Governance

Emissions
into the air:
477 tons

Toluenehandled:7,464 tons

The Lintec Group complies with relevant laws andregulations in and outside Japan and strives toreduce its use of chemical substances that havean impact on the environment.

We consider environmental impact
in each product development process
Akihiko Takano, Section Chief, Research Planning Office
Research Planning Department, Research Center

The Research Center has implemented various
VOC reduction efforts. We switched materials
containing organic solvents to emulsion-based*6
materials. In the initial stage of the development,
we work to create designs free of environmentallyhazardous substances. For environmentallyconsiderate products in particular, we conduct
LCA*7 assessments. In addition to“environment-friendly products,” we work toincorporate environment-friendly design into all
products we develop.

*6 Emulsion is a fine dispersion of minute droplets of one liquid in another, without
dissolving. Examples include milk and mayonnaise.
*7 LCA: See page 14.

WEB

See the CSR website for more information on the following:
3R Activities (examples of “reduce,” “reuse” and “recycle” activities), Flow of Processfrom Water Usage to Discharge, Effluent Quality at Kumagaya and Mishima Plants,
Proper Storage and Control of PCB, Drills for Disaster and Chemical Leakage, Switchover
to Solvent-free Agents in Printing-related Adhesive Products and Release Paper, Flow ofSubmission of Product Information

33

Environmental Report

The environment

Environmental Activities of
12 Group Companies Outside JapanThe Lintec Group puts effort into
environmental conservation activities atgroup companies outside Japan to fulfill
its responsibility as a global company.

Environment Performance Data in Fiscal 2013 Below is the environmental performance data for the 12 Lintec Group companies outside Japan in fiscal 2013.
FY2013 data (Jan. 1, 2013 to Dec. 31, 2013)

FY2012 data (Jan. 1, 2012 to Dec. 31, 2012)

VOC emissions
19
18

Lintec Suzhou

LATT 0

LATT

Korea 3.6
3.7

Korea
176
234

LSFK

Singapore
Madico(tons) 0

Lintec Tianjin 44
Lintec Printing &Technology (Tianjin) 15
74
LSFT
115

3,440
3,853

LATT 0

1,774
8,241
9,340
8,085
8,620
8,385
7,197
7,180
7,605

LSFK
988

Indonesia

742
17
31
1.2
1
0
0
6.1
3.8

Indonesia
Malaysia
Sarawak
Singapore

285
403
988
268

200

400

600

800

(MWh) 0

1,000

2,000

1,301
1,379

Korea
573
472

LSFK

1,652
1,814

Indonesia
766
758

Malaysia
Sarawak 00
Singapore 0
0

2,680
2,522

Madico628
569

Lintec Suzhou

1,175
1,406

Lintec Tianjin
Lintec Printing &Technology (Tianjin) 140
LSFT

Lintec Printing &0Technology (Tianjin)
LSFT 15
12

Sarawak

3,963
3,707

Lintec Suzhou

Lintec Tianjin 00

Malaysia

Fuel (light oil and natural gas) usage(crude oil conversion)

Electricity usage

4,000

6,000

8,000

10,000Madico423278(kl) 0

500

1,000

1,500

Notes: 1. VOCs = toluene and methyl ethyl ketone
2. Figures stipulated in Article 4 of the enforcement regulations for Japan’s Energy Conservation Act were used for the calorific value of each fuel used in order to calculate the crude oil equivalent of consumed fuel.
3. LSFT = Lintec Speciality Films (Taiwan); LATT: Lintec Advanced Technologies (Taiwan); LSFK = Lintec Speciality Films (Korea)

LINTEC (SUZHOU) TECH CORPORATION

LINTEC (TIANJIN) INDUSTRY CO., LTD.

Location: Suzhou New District, Jiangsu Province, China
No. of employees: 206
Main business activities: manufacture and sale of printing materials, industrial materials,
and products related to paper and processing material

Location: Nankai District, Tianjin, China
No. of employees: 91
Main business activities: manufacture and sale of products relating toprinting materials and industrial materials

To cope with the increased electricity consumption resulting
from the completion of the second plant, we installed a power
consumption monitoring unit within the power distribution
room in the second plant, like the one already installed in thefirst plant. We control
power consumption as partof our energy-saving
efforts, by monitoring thepower usage of each line.

We conduct ongoing energy-saving activities, including switching
the office lighting to LED. We also held a study meeting on “theSocial Media Policy”* in September 2013 to enhance theawareness of all employees about CSR management.

Jia JunGeneral Affairs &Personnel Division

Control screen of the power consumption monitoring unit

LED lighting in the office

LINTEC PRINTING & TECHNOLOGY (TIANJIN) CORPORATION

LINTEC SPECIALITY FILMS (TAIWAN), INC.

Location: Xiqing Economy Development District, Tianjin, China
No. of employees: 104
Main business activities: manufacture and sale of products relating toprinting materials and industrial materials

Location: Shanhua District, Tainan City, Taiwan
No. of employees: 96
Main business activities: manufacture and sale of electronic- andoptical-related products

In November 2013, we held a study meeting on biodiversity, inwhich all employees participated. It was a valuable opportunity
for us to learn about the ecosystem of animals and plants andtheir relationship with human beings, and to enhance ourawareness of theconservation of biodiversity.

Biodiversity study meeting* Social Medial Policy: See page 17.

34

Zhang Xudong
Engineering Department

Zhang Kun
Quality Assurance Office

Our plant uses natural gas to maintain the furnace temperaturewhen we stop the operation of the emission treatment system.
In this system, we installed additional energy-saving timer
modes, monitored the fuel usage, and carried out proper
maintenance. As a result,
we reduced
energy-consumption by
41 kl (crude oil equivalent)compared to fiscal 2012.

Emission treatment system

Ching-Shyang Tsai
General Administration
Department

2,000

LINTEC ADVANCED TECHNOLOGIES (TAIWAN), INC.

LINTEC KOREA, INC.

Location: K.E.P.Z. Kaoshiung, Taiwan
No. of employees: 67
Main business activities: manufacture and sale of electronicand optical-related products

Location: Cheongwon-Gun, Chungcheongbuk-Do, Korea
No. of employees: 71
Main business activities: manufacture and sale of electronicand optical-related products

In March 2014, Lintec Advanced Technologies (Taiwan), Inc.
acquired global ISO 14001 certification. We will continue
efforts for energy and resource saving by further enhancing
the environmental awareness of all employees.

Te-Wei Chiang
Engineering Section
Administration Department

In October 2013, as part of our biodiversity conservation
activities, 20 employees cleaned up the park near the plant. We
will continue environment conservation activities andenvironmental education to enhance the biodiversity awarenessof all employees.

Workshop for Internal Auditors from each division

Park clean-up activity near the plant

LINTEC SPECIALITY FILMS (KOREA), INC.

PT. LINTEC INDONESIA

Location: Pyeongtaek, Gyeonggi Province, Korea
No. of employees: 123
Main business activities: manufacture and sale of electronicand optical-related products

Location: Bogor, West Java, Indonesia
No. of employees: 330
Main business activities: manufacture and sale of products relating toprinting materials and industrial materials

Dong-Kook Baek
Environment and
Safety Section

In December 2013, some of our employees participated in an
educational workshop on biodiversity conservation, hosted by
an external organization. Subsequently, the employees who
participated in the workshop made in-house lectures to share
the knowledge they learned
among all employees.
Based on the knowledge
we learned, we will conduct
more concrete environment
preserving activities.

Ketut
Safety andEnvironment Division

Biodiversity workshop

LINTEC INDUSTRIES (MALAYSIA) SDN. BHD.

LINTEC INDUSTRIES (SARAWAK) SDN. BHD.

Location: Bukit Mertajam, Pulau Pinang, Malaysia
No. of employees: 93
Main business activities: manufacture and sale of electronicand optical-related products

Location: Kuching, Sarawak, Malaysia
No. of employees: 26
Main business activities: manufacture and sale of electronicand optical-related products
Siti Hidayah Binti Ayob
Production Division

Lintec Industries (Sawarak) acquired global ISO 14001
certification in September 2013. We will further enhance ourenvironmental awareness and pursue environment-friendly
operations.

Christina Teo
Finance and Administrative

Recycled soap-making workshop

ISO 14001 certificate and staff members

LINTEC SINGAPORE PRIVATE LIMITEDMADICO, INC.

Location: Cyberhub, Singapore
No. of employees: 85
Main business activities: manufacture and sale of products relating to printing materials
and industrial materials and electronic- and optical-related products
Cindy Soh
Long before it acquired the global integrated certification of
Human Resource

Location: Woburn, Massachusetts, U.S.A.
No. of employees: 272
Main business activities: manufacture and sale of printing materials and industrial materials

ISO 14001, Lintec Singapore recycled used paper. In 2013, weplaced more focus on reduction efforts by individual
departments and employees. We will continue this activity,
keeping up the employees’
environmental awareness.

Environmental
ReportIn May 2013, to enhance the awareness of recycling activities, aworkshop to make soaps from used cooking oil was provided to
employees. We will continue to enhance employees’
environmental awareness and implement conservation activities
by using familiar topics weface in our daily life.

Social Report

System to convert liquid waste into fuelCorporate
Governance

In June 2013, we changed the method for treating the fluid
waste discharged by the company. We now use a technique toconvert it to fuel. As a result, our industrial waste recycling rate
has improved and CO2 emissions were reduced.

Jin-Hee Kim
Production Division

Madico was rewarded a Platinum Award by a large supplier for its activities in the
packaging material recycling program for environmental conservation. In 2013, Madicocontinued enhancement of environmental awareness by recycling pallets, end plugs coresand other packaging materials totaling 113 tons.

Activity teammembers
Collection box for used paper

35

Environmental Report

The environment

Relationship between Lintec
and the Environment

Lintec is working to improve its manufacturing methods andproduction efficiency in order to reduce the environmental impact
caused by waste, PRTR substances, and effluent released into theenvironment through these business activities.

1. The scope of data collection covers Lintec Corporation and Tokyo Lintec Kako. Other affiliates are not included.
Material Flow and Calculation ofEnvironmental Conservation Costs 2. The data is for the period from April 1, 2013, to March 31, 2014.

Fiscal 2013 Material FlowWEB

Output*1

Input
Raw materials

EnergyPulp................... 111,000 tons

Purchased power

Paper................... 38,100 tons.................. 148,000 MWh

Film ..................... 26,600 tons

(Crude oil equivalent... 37,000 kl)

Adhesive ............. 20,000 tons

Fuel (crude oil conversion)

Corporate
GovernanceRelease agents...... 2,300 tons.......................... 56,000 kl

Organic solvents ... 8,600 tons

Water

Other chemicals... 39,200 tons

Industrial-use water

Mechanical parts ..... 500 tons................. 6,934,000 tons

Self-generated electricity ............................................... 54,000 MWh(crude oil conversion...........................................................14,000 kl)

Products
Specialty papers.........................................................................69,300 tons
Processing materials (release paper, etc.) ..................................56,100 tons
Adhesive products .....................................................................74,800 tons
Adhesive-related equipment ...........................................................500 tons

Business
Activitiesof Lintec
Manufacture andsales of adhesive
products, specialty
papers, processing
materials, andadhesiverelated
equipment
R&D Head officeadministration, etc.

Waste
Waste generated.......... 30,100 tons
● Waste emitted .......... 12,360 tons
Effective external utilization............................ 11,520 tons
Incineration ................... 740 tons
Final landfill disposal..... 100 tons
● Effective internal utilization............................ 10,830 tons
● Sale of valuable materials.............................. 6,910 tons

Atmospheric emissions
CO2............................. 203,000 tons
SOx ....................................... 8 tons
NOx................................... 124 tons
Soot and dust........................ 2 tons
Substances subject to the PRTR.................................... 500 tons
Release into water bodies
Effluent .................. 6,666,000 tons

Social Report

Environmental Accounting

Environmental
ReportLintec uses environmental accounting to ascertain the costs andbenefits of environmental protection, and continue to carry out
environmental protection activities as effectively and efficiently as
possible. In fiscal 2013, Lintec made environmental investments*2
totaling 308 million yen. The environmental costs*3 for the year were
2,897 million yen. The environmental investments decreased by

1,283 million yen because the major environmental facility
investments (installation of co-generation systems and solar powersystems) were completed in fiscal 2012. Environmental costs
decreased by 307 million yen because the number of environmental
response themes decreased to 13 from the 30 of fiscal 2012. WEB

Fiscal 2013 Environmental Conservation Costs
Category(Unit: ¥1 million)

Equipment to be subjected

Investments

Details of main initiatives

Expenses

Pollution prevention costa. Preventing air pollution
b. Preventing water pollution

1. Business area costc. Preventing overall pollution
Global environmental conservation costa. Preventing global warming

Installation of emission treatment systems
and deodorizers
Installation of waste water treatment andwhite water recycling systems
-

85
42
-

Management and maintenance of equipment to prevent
air pollution
Management and maintenance of equipment to prevent
water pollution
PCB and sludge disposal costs

Fuel conversion systems

39

Recovery of steam decompression energy

105

a. Efficient utilization of resources

Loss paper handling system

13b. Treating, reducing, and recycling waste

Furnace boiler fuel solidifying system

24

Collecting, recycling, and reusing byproducts
Green procurement and purchasing
Environmental education
Monitoring and measuring environmental impact
Constructing environmental management systems
and obtaining certification
Organizational management for environmental
conservation measures
Environmental information disclosure

Environmental measurement instruments

-

-

-

ISO 14001 and forest certification investigation--

Administrative costs related to environmental conservation-

308

Preparation of the CSR Report; participation in the Eco-Products fair
R&D relating to environmental protection
On-site beautification
Payment of pollution load levy-b. Energy conservation

Fuel conversion systems
Management and maintenance of in-house power
generation equipment

504
115
24
176
564

Resource circulation cost

2. Upstream/downstream cost

3. Administration cost

4. R&D cost
5. Environmental improvement cost
6. Environmental remediation cost
Total

0

Management and maintenance of wastepaper processing
equipment
Management and maintenance of incinerator and boiler
equipment; waste processing
Collecting, recycling, and reusing pallets and roll cores
Purchasing environmentally friendly office supplies
Seminars and workshops
Analysis of product, air, and water quality

305
389
68
5
2
32
4
327
28
307
28
19
2,897

Note: Investment in exhaust processing equipment installation includes spare parts and miscellaneous work.

*1 Inside sales are not included in “Output” figures.
*2 Environmental investments: The amount of investments made during a year for the
purpose of environmental conservation. Since the effect of the investments lasts forseveral years or longer, the invested amounts are recognized as costs over those years.

36*3 Environmental costs: Costs or losses arising from consuming goods and services for the
purpose of environmental conservation
WEB

See the CSR website for more information on the following:
Details of Fiscal 2013 Material Flow, and Environmental Conservation Effects

Third-Party Opinion
Hiroyuki Tada
Japan for Sustainability
Chief director of the non-profit organization Japan for
Sustainability, visiting professor at Hosei University,
professor at the Tohoku University Graduate School ofEnvironmental Studies, and committee member in various
government agencies

I read the Lintec Group CSR Report 2014, by carefully comparing it toreports of previous years. Fiscal 2013 was a year of great change for
the Company with the appointment of a new CEO. In the presidents’message in this Report, Mr. Nishio stated, “I renew the belief that CSR
should be pursued as a foundation for the LINTEC business,” as a newCEO. I understand the CSR philosophy of the Company has notchanged an inch.
The Lintec CSR is unique as it proudly links CSR with its
medium-term business plan and management strategies which are thecore of their businesses. In addition to the vigorous push of the
top-down approach, Lintec established the “LINTEC WAY,” ten
principles to follow in nurturing Lintec’s corporate motto. This is a greatbottom-up approach to promote the idea of CSR among employees.
The two Highlight articles featuring the BCMS and social activities
were very fascinating. Those Highlights strongly convey the Company’ssolid determination to sincerely work on social responsibilities andcontinues the efforts.
In LIP-2016, the new medium-term business plan of Lintec, thetop management recognizes that “global development” and “creationof innovative new products” are the top priority issues. In this sense,
Lintec’s CSR will face a critical point in terms of how much it cancontribute to addressing these issues with specific solutions.
To realize the former issue, corporate governance must be
strengthened on a group-wide scale. Looking into the organizational
chart in page 16, I had an impression that some elements are missing.
Governance is one of three pillars of ESG (environment, society andgovernance). Lintec should state specifically how it is going toestablish a global governance system.
The latter issue is a core competence for a corporation and thelifeblood for surviving. A concrete strategy is necessary to organicallyconnect this with CSR. Although Lintec’s management philosophy “Fortomorrow we build today” has not been referred to very often, I
propose that this management philosophy should also be emphasizedby connecting it with “Creativity.”
The six basic CSR approaches need some modifications. The
governance stated above should be incorporated. The issues “Safety,
disaster prevention and health” may narrow the scope. It may be
expanded to a wider scope of ES (employee satisfaction). In addition,
like the ones set for the environment aspects, I would like to see morequantitative targets established regarding social aspects. I think these
are the issues Lintec should work on in the future.

Response to Third-Party Opinion
Mr. Hiroyuki Tada has provided us with his third-party opinion since
fiscal 2012. We appreciate his acknowledgment of our management
policy built on the corporate motto “Sincerity and Creativity.” We willcontinue to actively carry out CSR management based on a serious
consideration of his comments. Lintec established the LINTEC WAY,
CSR principles to be followed by Lintec people, in fiscal 2014. It
represents the sense of values that all Lintec people should share andindividually reconfirm so that Lintec achieves sustainable growtogether with society. We will further convey these guidelines in CSR
study meetings and other occasions.
As Mr. Tada pointed out, global development and creation of new
products are extremely important issues for Lintec. With regards to theglobal development, we will continue to strengthen the governanceorganization, including establishing an international controllingcompany in Asia. As for the creation of new products, we will further

Editor’s postscript
The Message from the President is about
creating new business to meet society’s
expectation for the corporate motto “Sincerity
and Creativity.” Highlight 1 explains the Lintec’s
Corporate BCMS (business continuity
management system), activities of individualsites and how the system was developed.

expand the CSR Meetings that we started in fiscal 2012. Aiming torealize aggressive CSR, we will carry out workshops in which
members from different departments across the organization will
discuss solutions for social issues.
Regarding the modification of the basic CSR approaches, weplan to carry out activities related to materiality (material issues
related to environment, society and governance), in which we will
incorporate the measurable targets pointed out by Mr. Tada for the
fiscal 2013 Report.
CSR is the foundation of Lintec’s business management. We willcontinue our CSR efforts to achieve sustainable growth together
with society.

Hiroyuki Nishio
President and CEO

We will continue further expansion of theBCMS. Highlight 2 introduces ourcommunity-based social activities. We will keep
in close communication with stakeholders andcontinue CSR activities to meet social issues.
CSR Report 2014 production project members

37