Introduction

Human Capital
New ideas created from the diversity in human resources
For further information, pleaserefer to the “Social” of the
IDEC sustainability website.

We are committed to creating a pleasant workplace environment where diversity ingender, age, nationality, culture, lifestyle, and more is respected. In keeping with the“Management with respect for humanity” principle that we have subscribed to since
our foundation, we are working to foster a corporate culture where employees withdiverse personalities and values can fully demonstrate their abilities.

 nsure a thorough understanding of “The IDEC Way” and stimulate the company byEcreating an attractive work environment that gives employees a sense of purpose.
 romote decent work, as well as diversity & inclusion, to strengthen the company’s humanPcapital, in order to cultivate employees who will be able to innovate and create new value.

*1 Main issues: (1) human resource development, (2) strengthening of management abilities, and (3) improvement of the acceptability of human resource systems*2 IDEC unconsolidated

Governance

Strategies

Representative Directors

Managing Director

Strategic Planning DivisionCorporate Communications Department

Strategic Planning
Department

Human Resourcesand General Affairs
Department

Company-Wide Health &Safety Committee

The IDEC Group has established the following as its main purpose:“Create the optimum environment for humans and machines, andto achieve safety, ANSHIN, and well-being for people around theworld.” This main purpose and the company’s vision (Pioneer the
new norm for a safer and sustainable world) constitute “The IDEC
Way.” The goal of “The IDEC Way” is to realize a safer and moresustainable society that brings happiness and ANSHIN to all people.
To achieve the vision of the IDEC Group, we will further expand
our activities on a global scale and strive to contribute to theresolution of various societal challenges through our businessactivities. To this end, we have made it a priority to hire and train
personnel with diverse strengths who are able to manifest theircapabilities and their passion and open the way to the future to
become the leaders of the next-generation. We will continue toactively promote diversity & inclusion and carry out a variety ofhuman resource development policies.
We will also protect the safety and mental and physical healthof our employees, and will strive to ensure a healthy working
environment that is free from discrimination.

Data

CSR Department

Human resource development policy
In-house environment improvement policy

Governance

In FY2023, a new Strategic Planning Division was established as
an organization under the direct control of representative directors
to work together to draft management strategies and personnel
strategies. The new division, working in coordination with related
departments, leads the formulation of long-term visions, mediumterm management plans, sustainability KPIs, management andpersonnel strategies, and the managing of our management
resources. Critical matters are referred to the Top Management
Meeting, whose policy decisions are reported to the Board of
Directors.
In addition, a new Decent Work Promotion Subcommittee
was established in 2022 as a specialist subcommittee of theCompany-Wide Health & Safety Committee. The subcommittee
works to create a rewarding workplace environment and increase
employee satisfaction in order to achieve employee well-being.

Foundation For Value
Creation

IDEC has established “Business foundation: Establish amanagement structure that promotes value creation, foster anorganizational climate and develop human resources” as one ofits four materiality goals. Corporate revitalization and strengthening
human capital will be indispensable in order to achieve sustainablegrowth and increase our corporate value. Accordingly, we arecarrying out various initiatives to this end based on the vision weestablished for 2030, and in coordination with the policies in themedium-term management plan and the sustainability KPIs.
We have conducted an employee engagement survey since2019, and have made the resulting “Engagement score” one of
our sustainability KPIs. We are working to improve engagement bydetermining the current situation and the issues to be resolved andthen implementing measures centering on priority issues. In addition,
initiatives to promote decent work as well as diversity & inclusion
will be essential to further expand our business activities globally.
We will focus our efforts on hiring global talent and increasing the
proportion of female managers to ensure human resource diversity.
We have defined filling important positions and conducting
leadership training as medium to long-term human resource
strategies. We will systematically select and train candidates tobecome the next-generation of managers as part of our efforts toachieve sustainable growth for all Group companies.

E ngagement score (Japan)
Improvement in the scores for 3 main
issues (as compared to FY2023)*1
Number of female managers 15*2
Ratio of males taking childcare leave 90%*2

Business Strategy

Human resource strategies

Value Creation Story

Major sustainability KPIs (FY2025)

Business foundation

Related materialities

https://us.idec.com/idec-us/en/
USD/sustainability/social

Decent Work Promotion
Subcommittee

Healthcare Center

IDEC Report 2023

Human Capital40

Human CapitalMultifaceted evaluation system
In FY2023, a new multifaceted evaluation system was introduced
in an effort to enable employees to realize things about their
daily work behavior and job performance, in order to change
self-awareness and bring about a change in behavior.
Career Development Meeting

New personnel system

GRADE 8Training for newly appointed
executive officers

IDEC Leadership
Challenge Program

GRADE 2New employee training

Position-based
training

Selective training

Overseas training
Language education

Training programs

IDEC Report 2023

Products
Quality

Promotionof AI / DX

Explosion
protection
robotsJob-based education

Personal
development

Career planningtraining

Career seminars
for women, career
training by age
group, etc.

Other

Through coordination by relevant departments beginning with
the Decent Work Promotion Subcommittee, IDEC will work tocreate a work environment that is rewarding for all employees.
Rate of paid
leave taken

Ratio of males taking
childcare leave

Rate of return to work
after childcare leave

77

58

100

%

%

Data

GRADE 1

Overseas training
program

Optimization of working time management
Support for balancing career and family
Achievement of flexible work styles
Support for empowering women
Governance

Grade 2-5 training
Training for newly appointed
leaders

Tele-education / e-learning

GRADE 3

Safety Assessor training

GRADE 4IDEC General
Management
ProgramOnline learning

GRADE 5Training before
overseas
assignments

Specialized instruction by individual
departments

Training for newly appointed
department heads

English conversation / online English conversation

IDEC Advanced
Management
Program

GRADE 7
GRADE 6IDEC Top
Management
ProgramTraining programs
The IDEC Group has created various training programs to develop
employees through investment in human resources, in orderto resolve various societal challenges and achieve customer
success. In addition to organized in-house and outside training

We have implemented various workstyle transformation
initiatives, such as increasing work efficiency through DX,
building an IT infrastructure that includes telephones, etc.,
introducing a planned paid holiday program, and encouraging
male employees to take childcare leave. To enable more flexible
working styles, we have launched discretionary work and weare currently reassessing flex-time systems, existing work-fromhome programs and special leave systems.
Moreover, in FY2023 we established a Decent Work
Promotion Subcommittee to strive to create a rewarding
workplace environment where employees can work with ANSHIN
in order to increase employee satisfaction and achieve employee
well-being. The following objectives have been established andcross-departmental information sharing and company-wide
policies are currently being studied.

Foundation For Value
Creation

A new personnel system was introduced in 2022 based on
issues with personnel-related systems (relating to evaluations,pay, bonuses, promotions, etc.) that were identified in the first
employee engagement survey, conducted in 2019.
Under the new personnel system, multiple career tracks
were created to accommodate diverse career aspirations andprovide opportunities for individuals to realize their particularpreferences and strengths. The new personnel system also
increases transparency with regard to “objective management(evaluations)” and “renumeration” and ensures fair assessment
and treatment of desired roles, actions, and job performance.

Promoting decent work

Business Strategy

Beginning in FY2023, we have held a Career Development
Meeting as a new initiative to support employee growth andplace the right people in the right jobs within the organization.
At the Meeting, the department heads within each division
gather to share and clarify issues relating to developing member
capabilities and so on, study the allocation of roles, andconsider employee training plans including future promotion.
Attendees also share feedback from group analysis of stresscheck data, and trends and opinions relating to self-reporting,in order to help to improve the working environment.

programs and career advancement support programs, we havealso introduced an overseas training program for young employees
to develop personnel who can succeed in the global arena.
Moreover, to achieve sustainable growth for the IDEC Group
as a whole, we have also introduced a selective training programfor early training of the next-generation managerial candidates
who will lead our Group in the future.

Value Creation Story

We have introduced a personnel system that is based on ourhuman resource development policy and employee engagement
surveys. We also conduct multifaceted evaluations and work
to improve our training systems to strengthen human resource
development. In addition, we created the Career Development
Meeting as a mechanism for considering the development ofeach and every employee.

Introduction

Strengthening of human resource
management systems%

FY2023 IDEC unconsolidated

Human Capital41

Human Capital
Recruitment and promotion of foreign nationals

Employee composition by region
Americas

210

31%

Japan

990

34%

FY2023

1,088

28%

EMEA

898

Asia Pacific

Number of female managers
FY20238

12

FY2025(targets)

15

IDEC unconsolidated (including assistant managers with subordinates)

IDEC Report 2023

We have employed the Special Provisions for Corporate Groups
since FY2022. As of the end of FY2023, there were 41 disabled
persons (converted value 50 persons) employed by the IDECGroup in Japan, an employment rate of 3.0%.
Through regular interviews with employees with disabilities,
we check on their work
situation and strive toimprove the working
e nv iro nm e nt in a neffort to maintain an
employment rate thatis above the legally
mandated employment
rate.

Implementing operational reforms
to promote personnel policythat reflects the changing times

Huang Wei
Manager
Personnel Administration Department
IDEC (SHANGHAI) CORPORATION

I joined IDEC because I was attracted to the company’s
challenging spirit of “opening up a new field.” I have led
a variety of operational reforms that include establishing
the foundation for various personnel systems, integrating
Chinese sales companies, redesigning organizations, andintroducing personnel training programs from a medium
to long-term perspective.
I am working to ensure that personnel policy reflects
the changing times, with the aim of utilizing the special
attributes of IDEC (SHANGHAI) CORPORATION, which
has sales offices across the country, in order to succeedin the Chinese market, where the competition to attract
talented personnel is fierce.

Data

FY2021

 reating employment and involvement opportunities forCdisabled persons

Manager’s Message

Governance

We promote the empowerment of women as part of ourcommitment to creating an environment and culture that enable
diverse human resources to take on challenges.
We have set a goal of having at least 15 female managers
at IDEC unconsolidated by the end of FY2025. We also conduct
awareness-raising training for senior managers—who are thekey to promoting women’s empowerment—and career training
for all female employees. The ratio of female managers on aconsolidated basis was 23.2% in FY2023.

Intranet for LGBTQ+ issues

Foundation For Value
Creation

Cultivation and promotion of female managers

Our recruitment of mid-career talent actively strives to hire people
with highly specialized capabilities. In the three years from FY2021
through FY2023, IDEC unconsolidated hired a total of 57 mid-career
individuals, of whom 16 were managerial hires.
Moreover, we actively promote the hiring and training of people
experienced in DX and AI who can lead business innovation, as wellas people with highly specialized knowledge who can be entrustedwith engineering sales and new product development and so on
and can propose ideal solutions to resolve customer issues.
We will continue to actively recruit mid-career personnel withthe specialist capabilities and knowledge needed to strengthen
our business.

In FY2022, we began in-house education relating to LGBTQ+
issues to establish a workplace environment that enables all
people to work with energy and enthusiasm. We conduct training
for people who serve as in-house consultation contacts and post
specific information on thecompany intranet regarding
basic responses to persons
coming so it can be read by
all employees in order todeepen understanding of
LGBTQ+ issues.
We will continue to work
to create an environment inwhich employee identities
are not compromised.

Business Strategy

69%

Recruitment and promotion of mid-career personnel

7%

Ratio ofoverseas
employees

As of the end of FY2023, IDEC unconsolidated had 63 employees
who were foreign nationals, including two executive officers andtwo department heads. IDEC hires personnel without regard tonationality, and foreign nationals are working in many different
departments.
We are also making an effort to improve the environment
for foreign nationals, such as translating the minutes of major
meetings into multiple languages.

Understanding of and support for LGBTQ+

Value Creation Story

We carry out diversity & inclusion initiatives and strive to improve
our support systems and create an environment in which diverse
employees with different experiences, specialist knowledge, andexpertise can be active while respecting one another’s humanity,
without regard to gender, sexual orientation, gender identity,
nationality, social status, family origin, religion, etc.

Introduction

IDEC diversity & inclusion

Regular interviews

Human Capital42

Human Capital
Introduction

Maintaining employee healthand establishing a culture of safetyActive promotion of health and safety at manufacturing sites

Activities of the Company-Wide Health & Safety Committee

A Company-Wide Health & Safety Committee has been
established to oversee the health and safety organizations at
each site. The Committee works across our Group to prevent
industrial accidents, improve employee health, and create apleasant work environment. It also serves as a forum for activities
such as discussing issues and solutions relating to labor, health,and safety and sharing information throughout the organization.

IDEC Group Code of Conduct

Compliance training
Data

IDEC Report 2023

The IDEC Group Code of Conduct—our basic action guidelines
for conducting our duties—have been published in Japan andoverseas.
It is positioned under the Group philosophy “The IDEC Way,”and the actions that employees should take are consolidated in thethree pillars of Workplace, Social, and Business to make it easy
to communicate in all countries and regions where we operate.
The Code of Conduct is available to Group employees via thecorporate intranet in Japanese, English, Chinese, French, Thai,
Vietnamese, and Khmer.
Compliance training consisting of training to ensure anunderstanding of the Code of Conduct and case study researchbased on examples of compliance violations is conducted on
an ongoing basis within position-based training. Moreover,audits to determine whether there have been any complianceviolations are conducted as part of internal audits. We are fully
aware of the risk of compliance violations and failing to realize
the importance of maintaining compliance.

GovernanceWith the goal of becoming world’s most committed company
to pursuing and achieving safety, ANSHIN, and well-being, in2018 IDEC became the first Japanese company to support andregister for the Vision Zero campaign for occupational healthand safety, and established a dedicated department to promote
Vision Zero. Diverse initiatives are also carried out by our Safety
Promotion Committee and Quality Management Committee,
which are specialist committees of the CSR Committee.
In 2019, the Takino factory became our first worksite
to acquire certification under ISO 45001, an international
standard for occupational health and safety management
systems. Subsequently, in 2022, all of our distribution andmanufacturing sites in Japan—Tatsuno Distribution Centerand the four factories in Takino, Fukusaki, Amagasaki, andKiba—acquired ISO 45001 certification, as did the Suzhou

ComplianceFoundation For Value
Creation

Fitness gym in the Well-being Center

Four specialist subcommittees have been established under
it for four areas: traffic safety, health promotion, equipment
safety, and decent work. These subcommittees work to identify
company-wide issues and discuss solutions to them, among
other activities.

Business Strategy

In-house corporate clinic

factory in FY2023. In the future, they are expected to be joinedby the factories in Taiwan and Thailand.
Each site endeavors to further develop a safe andcomfortable workplace through activities such as conducting
cross-functional risk assessments and having employees reportissues they notice as a step toward improving the working
environment and preventing occupational accidents. The sites
also proactively provide training designed to equip employeeswith the knowledge and technology they need to strongly
promote workplace safety and peace of mind. In recognition ofthese efforts, the Japan Industrial Safety and Health Association
honored IDEC in 2022 with its Chairperson’s Prize, which isawarded to only one company each year. We helped leadthe 2022 Vision Zero Summit Japan as a partner company,
communicating to the world our various initiatives for realizing
a world where people can work safely and healthily, including
our global actions for promoting preventive culture.
A book published by Nikkei
Business Publications in May
2023 spotlighted our safety culture
best practices alongside thoseof renowned global companies
such as L’Oréal, Nike, and BMW,further cementing our reputation
as a company committed to
global promotion of well-being.
Going forward, we will continue
to pursue well-being technologies
Nikkei BP publishingthat maximize human potential.

Value Creation Story

Since keeping employees and their family members physicallyand mentally healthy is vital to the IDEC Group, we adopted the
IDEC Group Health Declaration and carry out health initiatives. The
first step for better well-being is to ensure the safety and healthof employees. We are taking action to eliminate or prevent thecauses of injuries, diseases, and other dangers in the workplace.
In 2019, we constructed a Well-being Center at the head
office in order to promote employee health. Featuring facilities
such as a fitness gym and a Healthcare Center, it has a staff ofdedicated occupational physicians and full-time occupational
health nurses who help employees to manage their health. An inhouse corporate clinic was added to it in 2022 in keeping with ouraim to ensure the mental and physical well-being of all employees.

Human Capital

43

Human Capital

Total Workplace Attractiveness

3.12

3.16

Total Employer Attractiveness

3.01

3.12

including higher scores for the overall indicators “Total Workplace
Attractiveness” and “Total Employer Attractiveness.” However,improvements are still needed for many items, and a companywide effort will be mounted to implement corrective action for
the results of the second survey.
Also, a new Employee Awards Program was introduced in
FY2024. In addition to award categories established for specificareas, award categories for employees who embody the Group’s
philosophy and exemplary employees who have taken action
in line with the IDEC Principles—which are based on our Core
Values and represent the concrete thinking and conduct that
employees should remain mindful of as they perform theirduties—have also been established in an effort to ensure that
all employees understand the Group’s philosophy.
In this way, various policies are being implemented to
improve employee engagement.

Risk management
In materiality analysis, the risks and opportunities relating tohuman capital are mapped on the twin axes of stakeholder
importance and business activity importance, and the risks
associated with human capital as a “Business foundation”
are integrated with the IDEC Group risk map and managed.
Critical risk items are assessed and managed by the Risk
Management Committee, and the risks and opportunities
relating to human capital are reassessed annually at the
P.66
Strategic Planning Division.

Metrics and targets
The IDEC Group has made “Establish a management structurethat promotes value creation, foster an organizational climate
and develop human resources” one of its materiality goals,
P.15
and has defined its vision for 2030.
In order to achieve this vision, we have establishedsustainability KPIs for activities in the areas of “Create apleasant workplace environment” and “Promote decent
work and increase investment in human capital,” and we are
implementing initiatives to achieve these goals.
Create a pleasant work environmentJapan

Engagement score
FY2025(Targets)
Improvement in
the scores for 3
main issues*

FY2023
Improvement in
the scores for 21
out of all 26 items(as compared to FY2020)(as compared to FY2023)

Main issues: (1) human resource development, (2) strengthening of management
abilities, and (3) improvement of the acceptability of human resource systems
IDEC unconsolidated

Ratio of males taking childcare leave
FY2021

FY202350 %58 %Investment in human capital

FY2025(Targets)

90 %IDEC unconsolidated

Number of female managers
FY2021

FY20238

12

FY2025(Targets)15* including assistant managers with subordinates

Average per capita training costs
FY2023
JPY

40,000

FY2025(Targets)
JPY

Data

IDEC Report 2023

2022 score

GovernanceIn 2019, we conducted our first employee engagement survey
to increase trust between the company and employees andboost overall employee motivation. Various initiatives have been
implemented based on the issues revealed by the results ofthe first survey.
The second employee engagement survey was conductedin October 2022. The results showed certain positive effects ofthe measures that had been implemented, with improvements

2019 score

Foundation For Value
Creation

Increased employee engagement

Item

Business Strategy

Click here for Detailed Human-Rights Policy

Results of engagement survey

Value Creation Story

We have maintained “Management with respect for humanity”
as one of our principles ever since our founding. We haveupheld a commitment to human rights in our business activities
as a fundamental principle to help advance sustainable social
development, while ensuring that everyone involved with the IDECGroup has a strong awareness of the importance of human rights.
We have established the IDEC Group Code of Conduct
to define specific guidelines for behavior based on “The IDEC
Way.” With regard to behavior in relation to human rights
and the work environment, the Code of Conduct establishes
behavioral guidelines to ensure respect for humanity, suchas not discriminating based on gender, nationality, social
status, family origin, religion, etc. We also support and respect
international norms relating to human rights, such as theInternational Bill of Human Rights, the UN Guiding Principles
on Business and Human Rights, and the Declaration on
Fundamental Principles and Rights at Work of the International
Labour Organization. IDEC is also a signatory to the UN Global
Compact and supports its ten principles.
Our Board of Directors is responsible for supervisingcompliance with regard to the commitment to human rights
issues and related activities. Based on its fundamental policy
on human rights, the IDEC Group will continue taking action toensure respect for human rights on the part of all employees
and stakeholders.
In addition, we are currently studying the implementationof human rights due diligence.

Introduction

Respect for human rights

70,000

Human Capital

44