CCI Sustainability Report 2023

President’s Message

Overview of the CCI Group

Value Creation Story

Sustainability Initiatives

ESG Activity Report

ESG Activity Report

ESG Activity Report Highlights
EnvironmentEnvironment

With environmental protection as a focus, CCI has made strides
in controlling the use of plastics and reducing waste byexchanging bottles and providing refill and replacement
packaging products.
In December, 2022, we switched our car shampoo
containers from bottles to pouches.
Additionally, products developed after December, 2020
utilize containers certified by FSC for responsible use of woodmaterials. We will continue our transition to moreenvironmentally friendly packaging.

Environmental Contributions of
Shimoda-Ecotech ProductsCompact Grease Trap significantly improves efficiency

Plastic use:

77

Shimoda-Ecotech designs, manufactures and markets Grease Traps (fat and oil%
reduction

separators) that are required by law to be installed in commercial kitchens.
The new and improved Grease Trap (NS Series), launched in October, 2022,
features a compact design with size reductions of up to 33% in installation area

440ml

500ml

* The amount of plastic used was calculated from the weight of the plastic
in relation to the fluid weight (compared to our conventional products).

and 46% in trap volume compared to conventional products, reducing thematerials used to make this series. Compared to conventional products of asimilar size, the NS series more effectively traps fats and oils by up to 47%.

Max.

ocial

160

Initiatives to Uphold Human Rights

CCI Group, recognizing respect for human rights as one of themost important themes underpinning sustainability management,
established the CCI Group Human Rights Policy in 2021. Under
this policy, we conducted human rights training for all board
members and employees in Japan.
In addition, we are conducting human rights due diligence*

Risk identification
Information
disclosure

CCI Group
Human Rights
Policyovernance

Prevention andrectification
Verification ofeffectivenessConsultation hotline
WEB* Human rights due diligence: An ongoing process of identifying, preventing and mitigating
negative impacts on human rights and determining the best course of action.

Human Rights PolicyMax.

increase*46％

reduction*

100
80
60
40

NS
Series

20

（％） 0

NS
SeriesConventional
products

Conventional
products

Installation area

NS
SeriesTrap volume

Conventional
products

Fat and oil trapping amount* When comparing the capacity of a similarly-sized grease trap functioning at 100%(with CCI’s conventional products)

Environmental Contributions of
CCI Automotive Products (Thailand)
Recycling PET bottles to reduce CO2 emissions
CCI Automotive Products of Thailand has been collecting and donating PETStrengthening Information Security

CCI Group is working to mitigate risks of cyberattacks andinformation leakage in promoting digitalization and digitaltransformation (DX) of business operations. In 2023, weformulated the CCI Group Information Security Policy,
implementing security countermeasures and continuous corrective
actions to strengthen our security system. In Japan, we provided
information security training and exercises to all employees in aneffort to improve their basic knowledge on the subject. We willtake steps to strengthen the management of information security,
not only in Japan but throughout the CCI Group.

33％

reduction*120

Human rights due diligence

47％

Max.

140

Dialogue and discussions with stakeholders
Appropriate education and training on human rights

based on the procedures outlined in the UN Guiding Principles
on Business and Human rights. In FY 2022, a total of 89 CCIGroup companies and partner companies in Japan and abroadwere asked to complete a self-assessment questionnaire. The
information provided allowed us to complete a risk assessment
and analysis. We will address the issues identified in this process.

GovernanceG

ESG Activities Around the World

Introducing a more compact design!

SocialS

CCI Group -Switching to Environmentally Friendly Packaging

bottles from employees since May, 2022 through a partnership with WHA
Group, an operator of industrial estates, and PTT Global Chemical PublicCompany Limited, a petrochemical manufacturer. Donated PET bottles are

CCI’s Key Initiatives

recycled into

■ Renewal of core system (ERP)■ Introduction of security solutions (EDR)■ Maintenance of information security
management system■ Information security training■ Targeted email attack response exercise

polyester fibers tomake handbags andother items. CCI
Automotive Products
will continue thisactivity to help lower
CO2 by reducing
waste and to achievea circular economy.

WEB

Information Security Policy

Receiving WHA’s report on donation results(January, 2023)

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CCI Sustainability Report 2023

President’s Message

Environmental Management

Environmental management system
CCI Group has adopted anenvironmental management
ISO 14001
system based on ISO 14001 andcertification
focuses on the planning,
execution, and review ofenvironmental initiatives as we
make continuous improvements.
(as of March, 2023)
Production sites that are not yet
ISO 14001-accredited will strive towards certification.

6

Environment

locations

Overview of the CCI Group

Value Creation Story<Reducing andWash water reduction
reusing wash water>
The Automotive
Chemicals Division is
working to reduce andreuse water used to wash
its tanks at plants. In(compared to FY 2019)setting a reduction target for water usage at CCI, we willcontribute to a sustainable society through ongoing efforts tosecure water resources.

18% reduction<Reducing waste within the CCI Group>

CCI Group actively engages in conservation throughgreenhouse gas reduction, environmentally friendly
products, and technology unique to CCI as we strive
towards the goal of carbon neutrality by 2050.

Climate Change Initiatives

Greenhouse gas reduction
In our efforts to reduce greenhouse gas emissions, CCI
promotes energy conservation and the use of renewable energy.
Reducing CO2 emissions as outlined in Scope 1 and 2 by 30%
before FY 2030, compared to FY 2019, is our medium-termtarget. We have established a project to promote activities andcreated an action plan to reduce emissions during production.
Under both, we are now working to lower our CO2 emissions.
Additionally, in FY 2022, CCI Group companies calculated theirindividual CO2 emissions. CCI Manufacturing Illinois in the
United States is working with a consultant to implement
reduction activities. CCI Group as a whole will make efforts
toward this end.
■ CCI’s CO2 emissions (Scope 1 and 2)(tCO2)

3,000

2,672

2,500

15% reduction
2,271

30% reduction

Building our chemical management system
CCI complies with all relevant laws including the Act on theRegulation of Manufacture and Evaluation of Chemical
Substances, the Act on the Assessment of Releases of Specified
Chemical Substances in the Environment and the Promotion ofManagement Improvement, the Industrial Safety and Health Act
as well as the Poisonous and Deleterious Substances Control
Act. To prevent harmful effects on people and the environment
caused by chemicals, each of our departments is working
together to build our chemical management system.

CCI will strive to achieve a circular economy as we follow ourcode of conduct in our operations. We endeavor to reduce
waste and to promote the use of recycled resources. We will
also focus on the recycling and effective utilization of our own
products.

Waste control<Reducing the amount of raw materials
used by reviewing work processe>
The Industrial Tires Division reduced its use of raw materials byreviewing its work processes. We will continue with our efforts
to reduce waste.

Rawmaterials
usage

1,500
1,000

<Developing vibration damping materials>
The Dipolgy ® * series of vibration damping materials cuts

Striving Towards a Circular Economy

TOPIC
Retreading Long Life Urethane Tires, ULTRUNS
Our long life urethane tire, ULTRUNS, can undergo
retreading. Retreading is a technology that reuses thewheel portion of the tires and replaces the urethane
layer to restore function. Retreading reduces
manufacturing and disposal costs while also helping theenvironment. We will seek to further reduce waste andresource usage by developing products with excellent
wear resistance as well as more durable and longer
lasting products.

Retreading results
FY 2021: 3,636
FY 2022: 3,882

Contributions to the Environment
CCI is working to develop environmentally friendly products by
utilizing technologies cultivated over the years.

bothersome noises by absorbing sound, vibrations and impacts
using our proprietary technologies that disperse sound throughthe combination of specialty additives and polymer materials. In
addition to vibration damping materials, we also offer vibration
damping paints that can be used on any shaped surface todeliver a quiet and comfortable space tailored to thecharacteristics of sound.
* Dipolgy comes from the combination of the words, dipole (magnetized poles) and energy.

ESG Activity Report

Product reuse

CCI Group’s two plants in China are also working to reduce theiruse of wash water. In addition, we are making efforts to reduce
fluid waste by establishing specific sampling amounts forinspections as well as transitioning to the use of tanker trucks todeliver raw materials and disposing fewer drums. We will continuebuilding an environmentally friendly manufacturing system.

Developing environmentally friendly products

1,870

2,000

BeforeAfter

7%increase<Expanding sales of fat and oil-degrading microbial agents>
Oil Vanish, a fat and oil-degrading microbial agent, significantly
reduces grease waste through its powerful ability to break downfats and oils contained in the drainage of food factories and otherfacilities. It also substantially reduces n-Hex (normal hexane
extract content) found in drainage, reducing foul odors caused bydecaying fats and oils and preserving the environment. Since
launching sales in 2018, Oil Vanish has proven effective throughuse in food factories. We will contribute to waste reduction by
further promoting sales of this product.

5.6% reduction(compared to FY 2021)

500
0Chemical Management System

Sustainability Initiatives

FY 2019
results(base year)

FY 2025
targetFY 2030
targetOil Vanish
Dipolgy sound absorption foam

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CCI Sustainability Report 2023

President’s Message

Initiatives to improve customer satisfaction
In an effort to improve customer satisfaction, CCI carefully
considers all forms of feedback on our products and services.
These include comments noted on surveys and communications
from patrons at our customer service centers. These valuable
opinions provide us the keys to plan our next steps. CCI has
also developed a telephone response manual and conducts
communication skills training for service center staff. We will
strive to further improve our level of service in responding tocustomer inquiries.

Following our code of conduct, we at CCI Group prioritize
safety above all else as we strive to improve customer
satisfaction. We actively work with local communities anddo our utmost to give back through services that fulfill our
corporate social responsibilities.

Quality

Initiatives for quality assurance
To ensure safety and product quality, CCI Group has acquired
quality management system certification (ISO 9001) andpromotes continuous improvement in our daily operations. Anycomplaints we receive from customers are addressed promptly
and appropriately with safety as a top priority. In order tostandardize quality control, we are in the process of adopting a
globally shared IT platform. This will allow us to visualize
production process management, quickly detect and correct
defects and take appropriate preventive measures. We willcontinue to focus on manufacturing products of the highest
quality throughout CCI Group.
■ External certification of quality management system(as of March, 2023)

ISO 9001 certification
IATF 16949 certification

7 sites
4 sites100%

In November, 2022, we introduced an
automated medical alert device that allows
employees working alone to call for help inthe event of a fall due to an accident orEmergency
illness. Emergency services will be alerted
alarm systemthrough the push of a button or any motion
detected by the device. Our goal is to create a safer
workplace in which those working alone may be given
swift medical attention in an emergency.

With Our Employees

Initiatives for CSR-based supply procurement

Human resource development

CCI works with business partners (suppliers) to moldconventional procurement activities that focus on quality,
performance, cost and delivery as well as corporate social
responsibility (CSR) elements regarding environment, labor andhuman rights. To reduce potential risks to business operations,
CCI has established procurement guidelines based on CSR
principles. With supplier consent, these guidelines are
implemented across the supply chain. To ensure compliancewith CSR guidelines and other regulations such as conflictminerals reporting, we implement self-assessment
questionnaires (SAQ) and maintain open communication withour business partners.

■List of training courses
Corporate
titlesManagement

All of CCI’s business sites have obtained ISO 45001 accreditation
for their occupational health and safety management systems,
establishing safety and disaster prevention standards to mitigate
and manage workplace incidents. To reduce risks that could leadto serious injury, we have developed appropriate work
procedures and require the use of protective equipment. We will
strive to continue reducing the risk of incidents by formulating
safety standards for CCI Group and providing continuous training
to enhance safety awareness.

Occupational
incidents andoccurrences*

0*Lost-time injury or worse

Safety patrol inside a plant (March, 2023)

Subject-specifictraining

New department manager training

Sustainability

New group manager training

Human rights

cases(FY 2022)

Departmental
training

New leader training

Compliance

Promotional training

Health and safety

Information security
Evacuation trainingNew
employees

Third-year training
New hire training

Harassment
LGBTQ*
Mental health

Outside seminars
In-house study
sessions
Implementationin eachdepartment

Business English
coursese-learning
Incentives for
obtaining
qualifications

5S
Safe driving
First-aid training
Prospective
candidates

ESG Activity Report<Adopting diverse work styles and remote work>
CCI has adopted systems to accommodate “Super Flex Time”
and second jobs, helping employees to maintain suitable work
schedules and improve work-life balance. In FY 2020, we
introduced remote work options. We transitioned to a cloudbased system in FY 2022, expanding the number of jobs thatcan be handled remotely.
<Balancing childcare with work>
CCI offers extended parental leave and shortened work hours
for all employees with children. In FY 2022, the eligibility period
for these programs were adjusted to allow until the end of the
fiscal year in which the child reaches the age of three. Thissystem also enables male employees to participate in childcare.

* Including time-off forchildcare

50 100
Men

Women

%

%

(FY 2022)

Diversity and inclusion
CCI leads initiatives that encourage a diverse workforce in which
individuals embrace and value each other’s skills andexperiences. These efforts also include extending the
mandatory retirement age from 60 to 65, allowing for further
fulfillment of one’s abilities.

Personal
development

Code of conduct
Mid-career
employees

Initiatives for occupational health and safety(FY 2022)

Position-specific training

Sustainability Initiatives

Employees onparental leave

Based on CCI’s Corporate Philosophy, we are working on humanresource development through high-quality training programs.
These courses include everything from new hire orientation toposition-specific and skill enhancement trainings led by guest
lecturers as well as business English classes. We have alsoestablished an incentive system for employees to acquire
additional certifications relevant to their work.

Environmentand quality

Quality standard training

Attendance atquality standard
training

Initiatives at CCI Manufacturing Germany:
Introduction of emergency alarm system for
employees working alone

With Our Business Partners

CCI regularly provides quality standard training for all
employees. We also organize training led by a consultant toincrease awareness and productivity of manufacturing
departments. We will continue training employees to elevatetheir understanding of quality.

Value Creation Story

TOPIC

With Our Customers

SocialOverview of the CCI Group

Prospective candidate training(prior to joining the company)* LGBTQ: An acronym for sexual minorities

Creating a comfortable workplace
CCI is committed to establishing an employee-friendly work
environment to help all personnel maintain work-life balance andmake the most of their capabilities. In FY 2020, CCI was recognized
by Gifu Prefecture as an Excellent Business Promoting Work-Life
Balance. In FY 2021, we were recognized by the city of Seki as a
Women-Friendly
Workplace. CCI
Holdings obtained
Kurumin (parenting
support) certification
in FY 2022.

<Initiatives for the LGBTQ community>
CCI organizes training for all employees, led by guest instructors,
to accurately understand the LGBTQ community. In FY 2022,
employees were encouraged to show their support by donningrainbow badges and becoming visible LGBTQ allies. In
recognition of these activities, CCI was granted bronze
certification by theAlly(a person who
PRIDE Index (anunderstands andsupports theevaluation of a
LGBTQ community)
company’s LGBTQ
initiatives) inNovember, 2022.

65

peopleImproving productivity(as of March, 2023)

CCI is working to enhance productivity companywide by promoting
business process standardization and digitalization through system
integration for each department and centralized databases. In FY
2019, we adopted robotic process automation (RPA) and began
automating our order receipt andReducing work hours
placement systems. We havewith digitalization
promoted the shift to smart
factories since FY 2018, aiming tovisualize manufacturing processes,
improve quality as well as todigitalize and automate equipment.

1,072
hours reduced(Estimated figure for CCI in FY 2022)

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CCI Sustainability Report 2023

President’s Message

Contributions to Society

Launch of research grant program
CCI aims to work together with young researchers to uncoverdevelopments that may open new business opportunities. CCI
provides research grants for
Selectedprogress in the fields of science
research topics(Nagoya andand technology. In recent years,
Gifu Universities)
we have opted to fund a wide
range of fields rather than limit
possible research topics.

7

cases

Community contributions(FY 2022)

Overview of the CCI Group

Value Creation Story<Seki Jimoto University>
Every year since FY 2021, we have been supporting educational
activities for local high school students through a local NPO in
Seki, Gifu Prefecture. In August, 2022, we hosted an online
discussion on CCI’s initiatives for the SDGs. We standcommitted to continually support education for the future
leaders of the community.
<Activities of subsidiaries abroad>
Since 2017, CCI Manufacturing Illinois in the United States has
participated in Team Honda Week(s) of Service*. In 2022, wecalled on employees to donate non-perishable items to theirlocal food banks (providing free supplies to those in need).

CCI supports and cheers on the community, local athletes andstudent activities through sports promotion initiatives.

*A program in which volunteers from the North American branches of Honda as well asfrom dealerships and suppliers participate in activities in their local communities.

<Gifu Half Marathon>This half marathon has seen theparticipation of several employees
each time. We value communication
with everyone in attendance. This is
our way of contributing to thecommunity through sports.

■ Main sponsorships (FY 2022)• Supporting motorsports

・Honda Mobilityland<CCI Cup>
We have sponsored soccer teams forelementary school students throughthe four Gifu Football Associations
since FY 2020. We organized the18th Gifu Prefecture 8V8 U-11 andU-12 Soccer Tournament in October,
3rd Gifu U-9 Soccer Tournament
2022 as well as the third Gifu U-9(held on January 15, 2023)
Soccer Tournament in January, 2023.
We will continue to support healthy mental and physicaldevelopment of children in the local community.

• Supporting local sports•

Professional basketball Gifu Swoops•

Professional soccer FC Gifu•

Motocross rider, Genki Tsuchiya•

Fudo no mori trail run•

JEGT Grand Prix - Chubu District•

Formula SAE Japan•

Gifu University Formula Racing•

iGEM for Gifu University• Supporting students(A global synthetic biology competition for students)

Legal and regulatory compliance
CCI holds monthly meetings involving our legal counsel andrelevant departments to ensure that our compliance with new orrevised laws and regulations is seamless and correct. In thismanner, we have a management
Serious violations
system in place to share informationof laws oron new and revised laws andregulations
regulations, along with our response
and progress. Through thesemeasures, we will continue tostrengthen our management system.
(FY 2022)

GovernanceAs part of corporate governance, the CCI Group places
the utmost importance on ensuring compliance byenhancing management transparency, reinforcing thesupervisory function and expediting the decision-making
process. It is our goal to improve our corporate value by
strengthening the corporate governance system.

Corporate Governance
CCI has established a corporate governance structure as follows
to ensure transparent, fair, prompt, and decisive decisionmaking with consideration for all of its stakeholders, including
employees, shareholders, customers, business partners, andlocal communities. The Board of Directors, which serves as thehighest level of management decision-making, provides
oversight on matters stipulated by law and other important
issues. At the same time, a system is in place wherein Audit &Supervisory Board members, including outside auditors, may
inspect the duties executed by directors and businessadministrators from a fair and independent position.

Management function

TOYOTA GAZOO Racing

Appointment
and dismissal
Board of Directors

CCI formed a partnership with the TOYOTA GAZOO Racing
World Rally Team in 2017. We supply brake fluid and engine
coolants to Toyota Yaris World Rally Championship (WRC).
In November, 2022, at Rally Japan held in Aichi and Gifu
Prefectures, CCI provided support as a local business tocheer on the team. CCI will continue sponsoring WRC,
Suzuka Circuit and AUTOBACS RACING TEAM AGURI(ARTA) with the aim of promoting motorsports.

Selectionand dismissal

Reporting

Representative Director
Consultation

Auditing function
Reporting

Audit

Appointment
and dismissal

Reporting

Auditor

cases

Whistleblowing (Internal reporting)

The CCI Group has introduced a whistleblowing system toprevent, quickly detect and rectify misconduct as well as topromote compliance management.
Number of reports
We have established internal andReports involving serious
legal violations orexternal contact points to receive
misconduct
consultations and reports from
employees. The Compliance
Secretariat handles these reports(FY 2022)
as appropriate.

0Compliance training and education

The CCI Group provides ongoing training on its code of conduct
and harassment in order to instill correct knowledge and foster
awareness. CCI has provided monthly
training to all employees using thecompliance book since FY 2022. We
will continue to promote awarenessand knowledge among employees.

Appointment
and dismissal

Cooperation

ReportingAccounting auditor

Accounting audit

Safetyconfirmation
system training
response rate

Reporting

Reporting

Sustainability Promotion Committee
Compliance and Risk Committee

Divisions, departments,and subsidiariesⒸTOYOTA GAZOO Racing World Rally Team 2023

Compliance training in progress(March, 2023)

CCI has established a business continuity management (BCM)
structure with an Emergency Response Plan (ERP), Crisis
Management Plan (CMP) and Business Continuity Plan (BCP) in
place. Reviews and trainings are held regularly each year to ensure
all personnel are prepared to take action in case of a contingency.

Management Meeting

Instruction

cases

Business Continuity Plan

General Meeting of Shareholders

Providing products to the motorsport industry

0

Risk Management■ Corporate governance system diagramTOPIC

ESG Activity ReportCompliance・Honda Racing School
Gifu Half Marathon 2022
(held on April 24, 2022)

Sustainability Initiatives

Information Security Committee
Investment Committee

Comprehensive disaster prevention training(December, 2022)

98%(March, 2023)

15