Better than Ever

CSR Report 2022

Better than Ever

Editorial Policy
FY 2021 was a year in which the F-Tech Group was greatly affected by changes in the external environment, including the continuation of the
new type of coronavirus infection, production fluctuations due to the shortage of semiconductors, the situation in Russia and Ukraine, and the
sharp rise in raw material and energy prices due to the weak yen. Today, various changes in the social environment continue, and the true value
and evolution of our Group in terms of flexibility and sustainability continue to be tested.
For more than a decade, we have reported on our environmental and social contribution activities in this report. In response to the recent
increase in social demands for sustainability-related information disclosure, the Our Group has been making efforts to carefully disclose
information, including a summary of financial information and responses in accordance with TCFD* recommendations. We hope that this reportwill be of help to our stakeholders in understanding our group.
In preparing this report, we have referred to TCFD recommendations on environmental considerations and climate change risk, and ISO
26000 on social responsibility. In this report, the F-tech Group is referred to as the F-tech Group or our Group, and F-tech Corporation is referred
to as F-tech or our company.

1

F-TECH CSR REPORT 2022

*Task Force on Climate-Related Financial Disclosures

CONTENTS

Top Message
3
6

TOP MESSAGE
Outline of Corporate Activities

What is the F-tech Group?
7
9
11

History of F-tech Group
Group and Company Profile
Financial Data

Governance
13
14
15
17
19

Corporate Philosophy and CSR
CSR Structure
Governance, Compliance and Risk Management
Board of Directors
Compliance with Revised Corporate Governance CodeSocial
21
23
24
25
26
27

Creating Comfortable Working EnvironmentV O I C E Flexible Work Style Initiatives
Occupational Health and Safety Initiatives
Quality Improvement Initiatives
Relationship with Shareholders and Investors
Community Relations

Environment
29
30
34
35
36
37
38
39
40
41
42

Realization of a decarbonized society
Disclosure based on TCFD recommendations
Global Environmental Targets for 2030 Promotion
Results
14th Mid-Term Plan
FY2021 Environment and Energy Plan (Domestic)
Material Flow (FY2021 Results)
FY2021 F-tech Environmental Accounting
Supply Chain Management
TO P I C S FY2021 Regional Environment Conference
Environmental friendly products and technologies
V O I C E Development that contribute to society andenvironment Global Initiatives

Global Initiatives
43
45
47

Japan
North America
China & Asia

Reporting period
This report includes results for FY 2021(April 2021～ March
2022）and some content outside of the period.
<Definition of Fiscal Year (FY) translation in this report>
FY • • • • means the terms from April • • • • to March • • • • +1.
Example: FY 2018 means the terms form April 2018 toMarch 2019

Future projections, plans and goals
This report is a forecast based on information available at the time it was
written and is not definitive. Therefore, the results of future businessactivities may differ from the projections contained in this report.

F-TECH CSR REPORT 2022

2

President & CEO

Yuichi Fukuda

3

F-TECH CSR REPORT 2022

Top Message

What is the F-tech Group?

GovernanceSocialEnvironment

Global Initiatives

Message from Top Management

We are making efforts to further improve
our corporate value.
Changes in the External Environment

activities on a global scale, in addition to stationing
employees from Japan at overseas sites we will consider

During the three-year period of the 14th mid-term businessactively promoting the mobility of human resources withinplan, which runs through FY 2022, the auto parts industry

the Group. Such efforts may involve transferring overseas

has been severely affected by major changes in the external

personnel to Japan or facilitating transfers between sites.

environment: COVID-19, semiconductor supply shortages,
lockdowns in Shanghai, and the recent situation in Ukraine.

Governance

The automotive suspension for products in which theF-tech Group specializes will remain important components

With regard to governance, each year we evaluate theeven if more vehicles are powered by electric motors (EVs)effectiveness of the Board of Directors in the aim ofrather than gasoline engines. The suspension for EVs needs

continuously improving the board’s operations. In 2021, we

to be optimized as requirements change along with shifting

established a voluntary Nomination and Remuneration

EV body structures. We constantly aim to reduce weight

Committee. Through this committee, which deliberates on

and improve cost competitiveness, taking handling stability

the selection of directors and executive officers, as well as

and crash safety into consideration. Suspension is

the setting of remuneration standards, we aim to makeresponsible for automobile’s basic function and ismanagement more transparent and objective. We use a skill

positioned as important safety parts and the constant safetymatrix to show the diversity of directors, in terms of theiris highly required.

expertise, experience, and capabilities. We disclose thismatrix in our notice for the General Meeting of

Focus on Human Resources

Shareholders, as well as in this report. In addition, to raiseawareness of governance throughout the Group, we

As a work style reform, we have applied the flextime systemprovide all employees a translated version of "Our Action

to more departments to create an efficient working system.

Guidelines" (the corporate code of conduct we distribute to

Rather than imposing top-down measures on employees,

all employees in Japan). Going forward, we intend to

we have introduced a career-building system thatencourage more employees to join the Employee Stockencourages employees to think for themselves and choose

Ownership Plan. We will consider measures to revitalize thetheir own careers. For example, we have introduced anplan and improve employees’ sense of participation andopen recruitment system for expatriate staff, and haveownership in management.

established a "takumi" (mentoring) system to pass on theextensive experience and expertise of retiring employees.

Social Contribution

We have been successful in a work-life balance initiative toensure that all employees use their paid leave that is carried

As a new initiative, we held a joint food drive donation

over to the following year. This culture has taken root, andceremony with our major financial institutions. Together, we

we have achieved a rate of zero carryover for 23 years. On

donated food to seven children's cafeterias in the nearby

the diversity front, we aim to have 10% of management

cities of Kuki and Kazo. In this way, we provided support topositions filled by women by 2030. Rather than simply

families whose lives were casted into major uncertainty byencouraging female employees to be active in the

COVID-19, as well as to the children who persevered despite

Company, we are holding “Town Meetings” with women to

the pandemic restrictions. This initiative also provided an

elicit their opinions on what is needed to encourage theiropportunity to cultivate employee awareness about theactive participation and how their environment can beissue of food loss. We engage in ongoing efforts to clean up

improved. Going forward, we will establish a working teamlocal areas and make them more attractive. Employees atof female employees to formulate and implement measures

the Kuki Plant focus on the area along the Bizenhori River,for promoting the participation of women. Meanwhile, tothe Kameyama Plant handles a greenbelt owned by the city

foster global human resources, every year we recruitof Kameyama, and the Haga Technical Center cleans anJapanese nationals who have been living overseas or haveindustrial park. We will continue working with ourexperience studying abroad. As we develop our businessemployees on efforts like these to address social problems.
F-TECH CSR REPORT 2022

4

Top Message

Initiatives on Environment

these needs and develop products accordingly. As a result,
we generate quality products efficiently and supply them

The Japanese government has announced the new target

to our customers around the world in a timely manner.

of achieving Carbon neutral by 2050. We plan to establish

Going forward, all of us at the F-tech Group will keep our

CFC(Cross Functional Team) , consisting of members

origins as a manufacturing company firmly in mind as we

selected from each department , and to create a

strive on a daily basis to provide value to our customers all"roadmap" toward carbon neutrality by 2050, which will bearound the world.

reflected in our next mid-term business plan. We
recognize that carbon neutrality cannot be achieved justVision for the Future

through daily energy-saving activities. Rather, we will needto integrate all the F-tech Group's manufacturing expertise

The F-tech Group’s vision for the future is to become “theand combine it with new ideas. This process isworld’s leading supplier specializing in the area ofmultifaceted; we will need to review manufacturing

underbody functions”. By this, we refer to the three-processes, upgrade production equipment, and switch to

product group comprising subframes, suspensions, andother sources of electricity. This initiative has a long time

pedals. We have honed our expertise in this area ever sincehorizon, so we will work on toward our goals by setting aentering the automotive business. We aim to become thebroad framework for what measures to implement and“wold’s leading supplier global manufacture” in the sense

when, and will keep on tackling this issue, bearing in ourof “having a manufacturing orientation,” rather than as

minds that how we pass the torch to the next generation.

measured by sales or market share. We define “having a
manufacturing orientation” as the ability to produce highquality products safely, efficiently, and with minimum
energy consumption, and to supply them to customers ontime at a cost level that firmly reflects the Company's
efforts. We share this definition with all employees, notonly those in manufacturing area but also back-officepersonnel, and encourage all to do their utmost to ensure
they are “number one” in their respective areas.

COVID-19 has dramatically changed the social environment
over the past several years. In addition to this, theinternational situation has recently been extremely unstable,
being characterized by conflicts among nations, politics,
and trade friction. Even in a rapidly changing social
environment, a chaotic international situation, and a

Improvement of Corporate Value

dramatically shifting business environment, we recognize
the need for all stakeholders to understand how

5

F-tech was established as a manufacturer more than 75

passionately the F-tech Group is committed to its corporate

years ago. Over the years, we have get the businessactivities and is fulfilling its social responsibility. Despite theopportunities with many customers. We have also

uncertain outlook, we are looking resolutely forward as wedeveloped a worldwide system to ensure we meet theircultivate both business and ESG activities. As we havefundamental requirements such as product quality, cost,remained faithfully focused on manufacturing since ourand delivery times. One of our strengths lies in having an

founding, We now have the responsibility to bring this same

integrated system that covers all processes in house, fromfocus to our ESG activities. It is my hope that this “CSR

development to mass production. Every customer has

Report 2022” will effectively convey the F-tech Group’s

different development processes and needs. We ascertain

efforts in this regard to our stakeholders.

F-TECH CSR REPORT 2022

Top Message

Governance

What is the F-tech Group?

SocialEnvironment

Global Initiatives

Outline of Corporate Activities

Steadily improve the financial soundness and solve
environmental issues at all sites.
Financial Index

Environment Index■ Sales■ CO₂ emissions

Although the market is recovering from the new coronavirus
infection, overall sales increased only 4.5% from the previous year
to 191,892 million yen due to the ongoing semiconductor supply
shortages.

Target: 5.6% reduction compared to FY 2017 CO₂ emissions
per unit
FY2021 result: 0.371t-CO₂/sales million yen (-16.3% compared to
FY2017)■ Operation Profit■ Water resource consumption

Sales decreased 62.8% from the previous period to 1.1 billion yen.
Despite of increase in machinery & tools sales and technicalservices sales (royalties) in Japan and the effect of cost
reductions, the continued impact of the new coronavirus
infection as well as a decrease in consolidated sales due tosemiconductor supply shortages had a significant impact,
resulting in a 1.9 billion yen decrease from the previous fiscal
year.

Target: 4.4%reduction compared to FY2017 water resource
consumption per unit
FY2021 result: 2.94 m3 / sales million yen (-5.6% compared to
FY2017)■ Interest-bearing debt balance
In FY2020, borrowing to prepare for the impact of the newcoronavirus infection occurred, but decreased steadily from theprevious year. in FY2021, borrowing was just under 65 billion yen
due to new large investment projects overseas.

■ Waste emissions
Target: 4.0% reduction of waste emissions per unit of sales
in FY2017
FY2021 result: 0.019ton/sales million yen (-22.6% compared to
FY2017)

Details are explained on pages 34 and 35 of this report. In
addition, there are some changes in the contents of last year's
report, and some of the contents have been revised.

■ Interest-bearing debt dependency
Although we have maintained the 30% level for consecutive
years since FY2017 by continuously strengthening managementof total assets and interest-bearing debt balances, in FY2021 thelevel is at 40% for the first time since FY2016 due to new large
capital investments and other factors.

Financial
Index

Item

Unit

FY2017FY2018FY2019FY2020

FY2021

Sales

Million yen

226,060

235,361

218,712

183,647

191,892

Operation Profit

Million yen

6,856

6,580

4,088

3,072

1,142

Operation Profit
Ratio

％

3.0

2.8

1.9

1.7

0.6

ROE

％

12.8

6.9

0.8

▲2.9

0.5

59,51046,22051,342

49,56564,867

Interest-bearing
debt

Million yen

Interest-bearing
debt dependency

％

39.5

33.7

38.3

36.3

40.3

t-CO₂/Sales
Million yen

0.443

0.432

0.415

0.396

0.371

Water resource
consumption (Unit)

m3/Sales Million
yen

3.12

3.08

3.14

3.48

2.94

Waste emissions(Unit)

ton/Sales Million
yen

0.025

0.020

0.023

0.023

0.019

CO₂ emissions(Unit)
Environment
Index

F-TECH CSR REPORT 2022

6

History of the F-Tech Group

From a Small Town Factory to a Global Company

Founding Period

1947˜1964

Jul. 1947 Founder Jiroku Fukuda established Fukuda Seisakusho in Soka City, Saitama
Prefecture, by press working of toy parts

Oct. 1959 Began manufacturing motorcycle parts for Honda Motor Co.
Jul. 1961 Honda won the Isle of Man race. Received a letter of appreciation fromSoichiro Honda for supplying parts

At the time of establishment

May 1964 Company name changed to Fukuda Press Kogyo Co.

Founding Period of Automobile business

1965˜1989

Jan. 1965 Developed and manufactured functional parts for four-wheeled vehicles
May 1967 Kameyama Plant (currently Kameyama Wada Plant) established in Kameyama,
Mie Prefecture
Dec. 1978 Head office and plant (now Kuki Plant) moved to Kuki City, Saitama Prefecture
Nov. 1983 Fukuda Engineering Co. was establishedOct. 1986 F&P Mfg., Inc. was established in Ontario, Canada as the group's first overseas
base

Certificate of Appreciation from Mr. Soichiro Honda

Dec. 1988 Company name changed to F-TECH INC.

Diversification of customers and business areas 1990˜1999
Jul. 1990 Haga Technical Center was established in Haga, Tochigi Prefecture
May 1991 Started business with Mitsubishi Motors Corporation
Jul. 1993 F&P America Mfg., Inc. was established in Ohio, U.S.A.
Jan. 1994 Kyusyu F.tech Inc. was established in Yamaga City, Kumamoto Prefecture,
Japan
May

F-TECH PHILIPPINES, MFG., INC. was established in Laguna, Philippines as thefirst base in Asia

Apr. 1995 Began transactions with Nissan Shatai Co. Ltd.

Our first overseas base, F&P Mfg.,Inc.

Sep. 1996 Stock registered with the Japan Securities Dealers Association for over-thecounter trading
Apr. 1997 DYNA-MIG, A Division of F&P Mfg. was established in Ontario, Canada
Mar. 1998 F-Tech obtained ISO 9002 certification
Feb. 1999 Business transactions began with Daihatsu Motor Co., Ltd.
Apr.

F&P America Mfg., Inc. obtained ISO9002 certification

Nov.

All domestic offices acquired ISO14001 certification
At the time of the name change to the current
company name

7

F-TECH CSR REPORT 2022

Top Message

What is the F-tech Group?

GovernanceSocialEnvironment

Global Initiatives

2000˜2010

Expansion PeriodⅠ
Jun. 2000 Began business with Nissan Motor Co.
Oct.

F&P Georgia, A division of F&P America Mfg. was establishedJan. 2001 Listed on the Second Section of the Tokyo Stock ExchangeMar.

Began transactions with Toyota Motor Manufacturing North America, Inc.

Apr.

Began transactions with Suzuki Motor Corporation

Jun.

F.E.G. DE QUERETARO S.A. DE C.V. was establishedJan. 2002 F-tech Zhongshan Inc. was established as the first base in ChinaNov.

At the time of listing on the First Section of theTokyo Stock Exchange

Kyusyu F.tech Inc. obtained ISO 9001 certification

Apr. 2003 F.TECH R&D NORTH AMERICA INC. was established in Ohio, U.S.A.
Nov. 2004 F-tech Wuhan Inc. was establishedMar. 2006 F-TECH MFG. (THAILAND) LTD. was established in Ayutthaya, Thailand
Sep.

Listed on the First Section of the Tokyo Stock Exchange

Nov. 2007 Reterra Co. Ltd. was acquired as a subsidiary
Dec.

Established FUTIAN MOULD TECHNOLOGY (YANTAI) CO., LTD, a subsidiary of
Fukuda Engineering Co.,LTD. in Shandong Province, China, currently YANTAIFUYAN MOULD CO., LTD.

F&P MFG DE MEXICO S.A. DE CV.

Jul. 2008 F.tech R&D Philippines Inc. was established in Laguna, Philippines

Expansion PeriodⅡ

2011˜Present

Dec. 2011 F-tech R&D (Guangzhou) INC. was establishedJun. 2012 Established F&P MFG DE MEXICO S.A. DE CV. in Guanajuato, Mexico
Dec.

Selected as a margin trading issue on the Tokyo Stock ExchangeFeb. 2013 PT. F.TECH INDONESIA was established in Karawang, Indonesia
Aug.

Michigan/R&D NA Branch Office was established in Michigan, U.S.A.

Oct.

Kameyama Plant obtained ISO 50001 certification.

Moved from the First Section of the Tokyo Stock
Exchange to the Prime Market

Jun. 2016 Current Public Interest Incorporated Foundation F-TECH SCHOLARSHIPFOUNDATION was establishedSep. 2018 F-Tech Automotive Components Private Limited. was established in
Gurugram, India

Nov. 2020 Invested in VEE GEE Auto Components Private Limited.in Gujarat, India
Mar. 2021 Started business with Toyota Motor Corporation
Dec.

Established Nomination and Compensation Committee as a voluntary
advisory body to the Board of Directors

Apr. 2022 Moved to the Prime Market from the First Section of the Tokyo Stock
ExchangeMay

Acquired India Steel Summit Private Limited in Uttar Bradhish, India

Mar. 2022 India Steel Summit Private Limited
became a subsidiary at the signing ceremony

F-TECH CSR REPORT 20228

Overview of Corporate Activities

For “The Best of Specialized Manufacturer in the Area ofUndercarriage Function in the World”

Our Products
The Leading Chassis Suspension Supplier that Can Respond to theIncreasing Demand for EV
We manufacture components, such as suspension arms, subframes and pedals, which are important safety components
in automobiles, with design high technological capabilities and an unique integrated processing system. While ensuring
the high quality required by automobile manufacturers, we have achieved strength, durability and weight reduction at
the same time.
Suspension Component Parts

Chassis System

Design Technology Capability
By utilizing our proprietary analysis
technology, we are promoting development
based on product performance predictions
such as suspension during driving.

Processing Technology
We have developed the unique technologyhydroforming, friction stir welding (FSW),
and FUT-1* that is an ultra-precise forming.
*Praised Creativity Award 2020 by the Minister of Education,
Culture, Sports, Science and Technology

ModulesMountedComponents

Control Parts

Corporate Overview

9Main Customers

CompanyName

F-tech Inc.

Head Office
Address

President & CEO Yuichi Fukuda

Head Office
Address

19, Showanuma, Shobucho,
Kuki, Saitama, JAPAN

Number of
Employees(Consolidated)

7,571

Establish

July 1, 1947

Capital

6,790,370,000yen

Business
Activities

Automotive parts and released
dies, machines, and tools
development, manufacturing,and sales.

F-TECH CSR REPORT 2022

Honda Motor Co., Ltd
General Motors Company
Nissan Motor Co., Ltd.
Honda R&D Co., Ltd.
Nissan Shatai, Co., Ltd.
Suzuki Motor Corporation
TOYOTA MOTOR CORPORATION.
and others

Top Message

What is the F-tech Group?

Governance

Global Network

SocialEnvironment

Global Initiatives(As of March 31, 2022)

9 Countries, 13 Production Sites & 8 Technology Development Sites
Opened new development sites in each region where we have production sites to ensure prompt response tocustomers' needs. We aim to improve our operations across the Group through information sharing across all areas
including quality, development, procurement and the environment.

DYNA-MIG, A Division of
F&P Mfg., Inc.
F.TECH WUHAN INC.

YANTAI FUYAN MOULD CO., LTD
UNITED STATESOF AMERICA
F.tech R&D (Guangzhou) Inc.

F&P Mfg., Inc.

CANADA
F.TECH R&D
NORTH AMERICA INC.

F&P America Mfg., Inc.

F・TECH ZHONGHAN INC.
F-Tech Automotive
Components Private Limited. INDIA
F-TECH MFG. (THAILAND) LTD.

THAILANDMichigan/
R&D NA Branch Oﬃce

F&P Georgia, A division of
F&P America Mfg.,Inc.

CHINA

F-TECH PHILIPPINES, MFG., INC.

F.E.G. DE QUERETARO S.A. DE C.V.

MEXICOF&P MFG DE MEXICO S.A. DE CV.

F.tech R & D Philippines Inc .
PHILIPPINES

PT. F.TECH INDONESIA
Haga Technical Center

Reterra Inc.

Equipment Center

Johnan Manufacturing Inc.

Head oﬃce, and Kuki Plant

Johnan-Kyushu Manufacturing Inc.
Kyushu F.tech. Inc.

Fukuda Engineering Co., Ltd.
Kameyama Plant●…Production Sites Japan(2), N. America(6), China(2), Asia(3)●…R&D, Sales facilities …Japan(2), N. America(2), China(2), Asia(2)F-tech Inc.

Overseas Affiliated Companies●Head office, and Kuki Plant (Kuki City,●F&P Mfg., Inc. (Ontario, Canada)(F&P)

Saitama)●Kameyama Plant (Kameyama City, Mie)
●Equipment Center (Kazo City, Saitama)●Haga Technical Center (Haga-gun, Tochigi)●DYNA-MIG, A division of Mfg., Inc. (Ontario, Canada)

Domestic Group Companies●Fukuda Engineering Co., Ltd. (Kazo City,

Saitama)●Kyushu F.tech. Inc. (Yamaga City,
Kumamoto)●Reterra Inc. (Chichibu-gun, Saitama)

Domestic Affiliated Companies●Johnan Manufacturing Inc. (Ueda City,

Nagano)●Johnan-Kyushu Manufacturing Inc. (Nogata

City, Fukuoka)(DM)●F&P America Mfg., Inc. (Ohio, the U.S.A)(FPA)●F&P Georgia, A division of F&P America Mfg., Inc.
(George, the U.S.A)(FPG)●F.TECH R&D NORTH AMERICA INC. (Ohio, the U.S.A)(RDNA)●Michigan/ R&D Branch Office (Michigan, the U.S.A)●F.E.G. DE QUERETARO S.A. DE C.V. (Queretaro, Mexico)(
FEGQ)●F&P MFG DE MEXICO S.A. DE CV. (Guanajuato, Mexico)(FPMX)●F-TECH PHILIPPINES, MFG., INC. (Laguna, Philippines,)(FPMI)●F.tech R & D Philippines Inc . (Laguna, Philippines,)(FRDP)●F-TECH MFG. (THAILAND) LTD. (Ayutthaya, Thailand)(FMTL)●PT. F.TECH INDONESIA (Karawang, Indonesia)(FTI)●F-Tech Automotive Components Private Limited(Haryana, India)(FTAC)●F・TECH ZHONGHAN INC. (Guangdong, China)(FTZ)●F.TECH WUHAN INC. (Hubei, China)(FTW)●YANTAI FUYAN MOULD CO., LTD(Shandong, China)(FEGY)●F.tech R&D (Guangzhou) Inc. (Guangdong, China)(FRDCH)<Equity-method affiliate>●Johnan America, Inc.
●Johnan De Mexico, S.A.de C.V.

●Johnan F.tech (Thailand) LTD.
●VEE GEE Auto Components Private Limited.

F-TECH CSR REPORT 2022

10

Financial Data

Sales Share by Customer FY2021 Details

Share of sales by customer
（％）

100

HONDA
11.4

80

12.9

12.7

10.9

GM
9.3

Co. Te

60

2.1%
1.3%
1.4%
4.5%
7.5%

TOYOTA
75.2

40

72.0

70.0

71.9

NISSAN

66.8

9.3%

MITSUBISHI
20

7.2%

66.8%

Co. S
Others

0

2017

2018

2019

2020

2021（FY）

Total Assets/ Capital adequacy ratio

Operation Income/Operating Margin（百万円）

Operating Margin （％）
3.5

Operation Income

8,000

7,000

3.0

6,000

2.5

5,000
4,000
3,000

0

2017

2018

2019

2020

1,600

800

30
25
20
15

600

10

400

5

200

0
2021（FY）

0

2017

2018

2019

Net Income or Net Loss

ROE・ROA/Earnings per share

（百万円）

（円）

4,000
3,000

2020

ROE

Earnings per share

300

5,000

（％）

40
35

1,200

1.5

6,000

Capital adequacy ratio

1,400

1,000

0.5

1,000

Total Assets

1,800

2.0

1.0

2,000

（億円）

0
2021（FY）

ROA

（％）

14.0

225

10.5

150

7.0

75

3.5

0

0.0

2,000
1,000
0
-1,000-2,000

2017

2018

2019

2020

2021（FY）

R&D Expense/Capital Expenditures（百万円）

Capital Expenditures

16,000

（人）

2019

Asia
9,997

10,195

1,438

1,539

8,000

12,00010,000

6,000

8,000

2020

8,710
1,450

4,696

4,670

North America

4,000

2,000

2,000
2017

2018

F-TECH CSR REPORT 2022

2019

-3.5
2021（FY）

2020

2021（FY）

0

Japan

9,400
1,355

7,571
1,071

3,552

4,556
4,068

4,000

6,000

11

2018

12,00010,00014,0000

2017

Employees by geographic segment

R&D Expense

18,000

-75

3,863

3,986

3,708

3,489

2017

2018

2019

2020

2,432
2021（FY）

F-tech Group aims to maximize corporate
permanence and long-term shareholder value
through the management that focuses on broad
range of stakeholders.
In addition, we have created "Our Action
Guidelines" and have shared our value by
expanding the guide to all the sites.

F-TECH CSR REPORT 2022

Governance
F-TECH CSR REPORT 2022

12

Management Philosophy & CSR

MissionStatement

From a global perspective, we strive to contribute to our society and to improve
the quality of life through manufacturing of the highest quality products with
ambition and sincerity.

Corporate
Philosophy

Challenging Spirit

Respecting People

Making Profit

Our Action Guidelines● Compliance with laws and ordinances
We always give top priority to ethically appropriate conduct in all our
activities. We always comply with laws and ordinances and act with agood social conscience as a good member of society in keeping withbeing a company with a high commitment to legal compliance. If we
discover any violation or possible violation of any laws, ordinances orcompany rules, we will report the matter, make suggestions, and consult
with our direct supervisor or the Corporate Ethics Kaizen Desk.
● Respect for human rights
We respect all individual and human rights of our colleagues in theworkplace.
We do not tolerate any child labor, forced labor, discrimination or any
type of harassment that violates human rights.
● Labor and Safety & Health
We will establish a safe and secure working environment for all our
employees, and maintain a pleasant and safe working environment.
● Quality
We strictly follow the highest standards and procedures giving toppriority to provide products and services with safety to meet customer's
expectations.
● Compliance with company rules
We create our company's internal rules and regulations based onrational reasoning and relevant objectives to create a fair and equal
working environment and we commit to communicating with our
employees effectively.
● Traffic safety
As a member of the automotive components manufactures, we always
observe traffic safety laws, rules and regulations, being a good citizen on
the road by giving way to others on the road.

Our CSR Approach● Environmental protection
We will endeavor to protect the environment, with the belief that the
Earth belongs to all humankind. We always consider minimizing theimpact on nature and optimize energy resource utilization in production.
● Increasing corporate value
We believe the purpose of a company as a going concern is the creationof value. We will always strive to maximize socially accepted corporate
values by bringing profit long-term for our shareholders and society.
● Disclosure and management of information
We strictly distinguish and manage information from personal, company
confidential, and to be disclosed appropriately. However, we strive to
publicly make available any required information in accordance withrespective laws and corporate regulations appropriately and in a timely
manner.
● Fair transactions
We always ensure business is conducted in a free, equal and fair mannerwith transparency, and will not engage or agree with any irrational,
corrupt business practices.
We will not allow giving and receiving of any benefit or conveniencebeyond reasonable and legal limits socially acceptable, and we will not
maintain any unfair relationship with political parties or government
authorities.
We will never permit or tolerate any relationship or connection with any
anti-social organizations or behaviors which may threaten the safety andwell-being of our society.
● Community involvement
Being a member of the local community, we support the creation of an
equal, wealthy and well-being of our society through participation in
local community development, promotion of cultural, educational, andthe improvement of the welfare of the local society.

We fully understand that our business activities affect both society andenvironment, and we pledge to act responsibly based on our philosophies,
mission statement, and action guidelines, as well as to contribute to thecreation of a sustainable society and environment.

Realizing the
Corporate Mission

Governance
Human Rights & Labor
Quality & Safety
Environment
Society

Implementation of
Our Action

Realizing CSR

Establishment

Corporate Philosophy
Challenging Spirit

13

F-TECH CSR REPORT 2022

Respecting People

MakingRealizing a Sustainable Society

Corporate Value

Corporate Philosophy & CSR

Top Message

Governance

What is the F-tech Group?

SocialEnvironment

Global Initiatives

CSR Structure

We are working to reinforce the CSR structure of the entire
F-tech Group in our aim of realizing a sustainable society.
Last fiscal year, we realigned our CSR structure to further enhance
our CSR initiatives (see the figure below). Under the new
structure, the Company-wide CSR Committee works closely witheach major department and specialized committee to identify
issues, set optimal goals, and encourage CSR activities
throughout the Group. As part of our efforts to strengthen
corporate governance and internal controls, these departments
and committees identify various company-wide issues, follow up
on responses, make improvements, and develop preventive
measures within the Group.
On the environmental front, we invite personnel from eachbusiness location and subsidiary to our annual Environmental
Conference, where we share information about each site’smeasures to reduce environmental impact.
In the social category, we cultivate a workplace culture thatencourages balance between work and home life. The working
environment also emphasize safety, as defined by ourcompanywide safety policy: “We aim to improve the level ofsafety at all our sites by standardizing and sharing health andsafety rules globally.” In addition, we strive to enhance the quality
and safety of our own products used around the world in linewith our group-wide quality policy, to "Provide the highest value(quality) and maximize customer satisfaction.” Meanwhile, in our
engagement with stakeholders we strive for timely disclosureand constructive dialogue.
In the area of governance, the Compliance Committee works
in accordance with regulations and analyzes the results of stresschecks to encourage a more open work environment. The Risk
Management Committee, whose members include
representatives from each department, examines measures todeal with various risks while incorporating the opinions of eachdepartment.
At the end of each fiscal year, we encourage our 17
subsidiaries in Japan and overseas to conduct self-verification
using the “F-tech CSR Verification Sheet.” We use these results toevaluate the CSR efforts of the entire Group and identify issues tobe addressed. We report the results to the Board of Directors,
which provides supervision.
We have translated into five languages "Our Action
Guidelines," which serve as the starting point of the Group's CSR
activities, along with an accompanying explanatory document
entitled "Guidelines." In this way, we foster a common global
understanding of the Group’s CSR activities. F-tech directors,
auditors, and supervising executive officers join the management
meetings of overseas subsidiaries to manage and supervise theiroperating systems, as part of our overall aim of realizing asustainable society.

Company-wide CSR Management System
Board of Directors
Chief Company-wide CSR
OfficerManagement Planning Division Manager

Company-wide CSR
Committee
Secretariat

Regional Society
Public Relations
Management Planning
Division

Quality Assurance
and Product Safety
Quality Assurance
Evaluation Meeting
Quality Assurance
OfficeManagement Planning Division
General Affairs Department

Compliance

Environment

Human Rights and
Labor

CG

Compliance Committee

Environmental
Conference

Safety and HealthCommittee

Risk Management
Committee

Quality Assurance

Production Planning
DivisionManagement Planning
DivisionManagement Planning
Division

Committee Members

OfficeGlobal Committee Members

Promotion directors Division managers

Promotion directors Site managers

Promotion managers Individual managers

Promotion managers Related executives

or Nominees

F-TECH CSR REPORT 2022

14

Governance, Compliance, and Risk Management

Corporate Governance System■ Board of Directors
As the decision-making body for management issues, theCompany’s Board of Directors, consisting of five directors(including two outside directors), decides important topics
related to business execution and legal matters, and monitors
business execution. We have separated the management andbusiness execution functions by introducing an executive officer
system. This move was aimed at strengthening the Board of
Directors’ decision-making and oversight functions, thereby
expediting the execution of business.
In addition, to ensure monitoring of management, F-tech
has appointed two highly independent outside directors, whose
external viewpoints are actively incorporated into management
by receiving opinions and suggestions from multiple
perspectives. Moreover, the directors' terms of office are limited
to one year to facilitate the Company's ability to respondproactively to changes in the business environment.

■ Overseas Business
For the overseas business, directors who are also Director & Senior
Managing Executive Officers are appointed as a Global Chief SED
Officer and a Global Business Management Officer. These
executives participate in the decision-making process for overseas
group companies. The system is designed to enable an overall
evaluation of investment appropriateness and business profitability.

■ Policy for Determining Remuneration
The Nomination and Remuneration Committee is a voluntarycommittee that advises the Board of Directors. A majority ofcommittee members are independent outside directors, and thecommittee aims to ensure the Company is transparent, fair, andrational in remuneration amounts and calculation methods for
directors and other executives. The committee deliberates on the
results of regular third-party surveys of corporate manager
remuneration. The committee reports the results of its
deliberation to the Board of Directors, and the board decides on
remuneration.
Similarly, the Board of Directors resolves performance-linked
remuneration following deliberation by the Nomination andRemuneration Committee of key indicators, target levels, andcalculation methods.

■ Compliance Initiatives
In addition to complying with domestic and international laws
and internal regulations, we have established “Compliance
Regulations” to prevent harassment, including human rights
violations. We also provide compliance training tailored to
employees of different ages and job levels, and disseminate
information through a monthly e-mail newsletter.
To facilitate anonymous reporting, we have established
Corporate Ethics Kaizen Desks both internally and outside theCompany, making it easy to offer suggestions. If a problem is
discovered, the Corporate Ethics Committee meets, both toprotect the whistleblower and to conduct investigations, study
countermeasures, and issue instructions for improvement to therelevant department. Each of our overseas subsidiaries has set up
either a suggestion box or a whistleblowing desk to promote a
more open workplace environment.

Shareholder’s Meeting
Selection/Removal

Consult

Audit & Supervisory
Board↑Report↓Approval

Audit

F-TECH CSR REPORT 2022

Exchange
Opinions

Board of Directors
ReportSelection/Removal↑Report↓Direction

Internal Audit Office
Audit

Nomination andRemuneration Committee

Supervision

President
ReportManagement Meeting
Control/monitor

Departments, affiliated companies, subsidiaries
Audit

Corporate Ethics
Committee
Proposals for
improvement

AdviseGeneral Counsel

ReportReportAccounting Auditors

Check the reasonablenessof the audit

15

Selection/Removal

Top Message

What is the F-tech Group?

Governance■ Initiatives Addressing Risk
We have established Risk Management Regulations, and we
strive to address and avoid various risks. The Risk Management
Committee is composed of the Production Planning Division
Manager (who serves as risk management officer), theManagement Planning Division Manager, and each individual
division manager. The committee discusses specific measures,
drawing on specialized input from each business.
The BCP (business continuity plan) Working Group preparesand updates department-specific manuals. In the event ofa large-scale disaster or other
unforeseen event, an

SocialEnvironment

Global Initiatives

emergency task force headed by the president is immediately
established to determine countermeasure policies and to quickly
restore and recover from the disaster. We continue to implement
fundamental measures to prevent infection from COVID-19. To
address the possibility of employee infections, we enact
thorough measures—such as early testing and taking leave—
and alert employees based on our COVID-19 Response
Guidelines.

■ Information Security Initiatives
We distribute Information Security Guidelines to all employees
and strive to ensure a thorough understanding of theseguidelines among employees. Minutes of Board of Directors andother important meetings are handled in accordance with our
Regulations for the Management of Documents and Forms,
Confidentiality Regulations, and Regulations on Information
System Management. Contracts and other agreements are
subject to Contract Management Regulations and are handledaccordingly.
During November of FY 2021, the malware* Emotet raged
around the world. Fortunately, our training on targeted email
attacks, use of cloud email security services to check incoming
email, and regular alerts prevented damage. The Information
Security Committee conducted an inventory of PCs to identify
damage and speed up response in the event of a security
incident. The committee also studied and tested the introductionof EDR*/MDR* in response to unknown threats. Going forward,
we intend to introduce EDR/MDR, promote further integration ofdispersed backup operations and links with the cloud, andstrengthen our system for responding to various threats.

Compliance training

Training example of a targeted attack email*Malware
A generic term for malicious software or malicious code created with theintent to operate in an unauthorized and harmful manner*Endpoint detection and response (EDR)
A solution that detects suspicious behavior on PCs and servers (endpoints)
and supports rapid response
Compliance poster*Managed detection and response (MDR)
Managed services designed to detect threats that enter the network as soon
as possible and act quickly

F-TECH CSR REPORT 2022

16

GovernanceDirectors

Directors

Yuichi Fukuda

Hajime Fujitaki

President & CEO

Director & Senior Managing
Executive Officer
Global Chief SED Officer

Significant Concurrent positions outside the Company
None

Significant Concurrent positions outside the Company
None

Career summary

Career summary

Dec. 1994 Joined the Company
Jun. 2004 Director
Jun. 2008 Director & Senior Managing Executive Officer
Mar. 2010 Division Manager of Management Planning Division
Apr. 2012 Chief Sales & Marketing Officer and Regional CEO of North America
Apr. 2013 Chief Domestic Business Officer
Apr. 2014 Director & Executive Vice President
Apr. 2015 President & CEO (current position)
Dec. 2021	Member of Nomination and Remuneration Committee(current position)

Aug. 1981 Joined the Company
Jun. 2004 Senior Operating Officer
May. 2008 President of F&P America Mfg. Inc.
Apr. 2012 Division Manager of Quality Assurance DivisionJun. 2012 Director& Managing Executive Officer
Apr. 2013 Division Manager of Production Planning Division
Apr. 2016 Division Manager of Sales & Marketing Division
Apr. 2017	Division Manager of Sales & Marketing Division and Regional CEO
of Asia
Apr. 2020	Director & Senior Managing Executive Officer (current
position)
Apr. 2020 Global Chief SED Officer (current position)

Hiroyuki Aoki

Naoko Tomono

Director & Senior Managing Executive Officer
Division Manager of Management Planning
Division
Global Business Management Officer

Director

Significant Concurrent positions outside the Company
Partner of T and T PARTNERS LAW OFFICE
Outside director of Taisei Lamick Co., Ltd.

Significant Concurrent positions outside the Company
None

Career summary

Career summary

Aug. 2015	Joined the Company as Assistant Division Manager of Management
Planning Division
Apr. 2016 Senior Operating Officer
Apr. 2016	Division Manager of Management Planning Division (current
position)
Jun. 2016 Director and Senior Operating Officer
Apr. 2020	Director & Senior Managing Executive Officer(current
position)
Apr. 2020 Global Business Management Officer (current position)

Apr. 1988 	Joined Sogo & Seibu Co. Ltd. (formerly Seibu Department Store Co.
Ltd.)
Dec. 2008 	Registered as an attorney at law ( Daini Tokyo Bar Association)
Jan. 2009 	Joined T and T PARTNERS LAW OFFICE (formerly Takagi Yoshiko
LAW OFFICE)
Jan. 2013 Partner (current position)
Jun. 2016 	Outside director of Taisei Lamick Co., Ltd. (current position)
Jun. 2017 	Outside director of the Company (current position)
Dec. 2021 	Chairperson of Nomination and Remuneration Committee(current position)

Nobuhiro Koga
Director

Outside Independent

Significant Concurrent positions outside the Company
Professor, Faculty of Fundamental Engineering,
Nippon Institute of Technology
Chairperson, Industry-University Cooperation and
Entrepreneurial Education Center, Nippon
Institute of Technology
Director, Association of Saishin Collabo Sangakukan
industry-academic-government collaboration (current position)

Career summary
Apr. 1996	Associate Professor, Faculty of Fundamental Engineering (formerly
Department of Mechanical Engineering), Nippon Institute ofTechnology
Apr. 2002 	Professor, Faculty of Fundamental Engineering (formerly
Department of Mechanical Engineering), Nippon Institute Of
Technology (current position)
Apr. 2013 	Chairman, Industry-University Cooperation and
Entrepreneurial Education Center, Nippon Institute ofTechnology (current position)
May. 2016 	Director, Association of Saishin Collabo Sangakukan industryacademic-government collaboration (current position)
Jun. 2018 Outside Director of the Company (current position)
Dec. 2021 	Member of Nomination and Remuneration Committee (current position)

17

Outside Independent

F-TECH CSR REPORT 2022

Top Message

Governance

What is the F-tech Group?

SocialEnvironment

Global Initiatives

Legal/
Risk Control

Academic
experience

Skill Matrix

Name/Item

GenderIndependence

Yuichi Fukuda

Male

Hajime Fujitaki

Male

Hiroyuki Aoki

Male

Naoko Tomono

FemaleOutside/Independent

Nobuhiro Koga

Male

Outside/Independent

Corporate
Technology/ Production/
Management Development Engineering◯◯

Sales/
Procurement

Finance/
Accounting

◯

◯

◯

◯

◯

Governance/
CSR

Overseas
experience

◯
◯

◯

◯

◯

◯

◯

◯

◯
(Engineering)◯

Auditors

Masao Toyoda

Yasuyuki Ikezawa

Full-time Auditor

Full-time Auditor

Significant Concurrent positions outside the Company
None

Significant Concurrent positions outside the Company
None

Career summary

Career summary

Jun. 1981
Oct. 2005
Jun. 2008
Mar. 2009
Apr. 2012
Apr. 2014
Apr. 2016
Jun. 2017

Apr. 1980
Apr. 2002
Jun. 2004
Mar. 2009
Apr. 2013
May. 2016
Jun. 2018

Joined the Company
President of F&P GEORGIA MFG., INC.
Director & Managing Executive Officer
Division Manager of Sales& Marketing Division
Division Manager of Management Planning Division
Director & Senior Managing Executive Officer
General Manager of Corporate Planning Office
Full-time Auditor (current position)

Joined the Company
Administration Block Leader of Development Planning Office
Administration Block Leader of Kuki Plant
Administration Block Leader of Kameyama Plant
Director of F&P Mfg., Inc.
Managing Director of F&P Mfg., Inc.
Full-time Auditor (current position)

Hiroshi Takahashi

Kenichiro Masuda

Auditor

AuditorOutside Independent

Significant Concurrent positions outside the Company
Director of Non-life Insurance Policy-holders Protection Corporation ofJapan
Representative Director Vice Chairman of Japan
Institute of Business law
Chairperson of Egusa Foundation for International cooperation in theSocial Sciences
Adviser of Atsumi & Sakai

OutsideSignificant Concurrent positions outside the Company
President of The Saitama Resona Foundation For Industrial and Economic
Promotion
Part-time Auditor of Daizo Corporation

Career summary

Career summary

Aug. 1985 Professor, Faculty of Law, The University of Tokyo
Dec. 1998 	Director of Non-life Insurance Policy-holders Protection
Corporation of Japan (current position)
Apr. 2007 Executive Vice President of The University of Tokyo
May. 2009 Professor Emeritus of The University of Tokyo
Jun. 2009 Special Counsel of Mori Hamada & Matsumoto
Feb. 2010 Director of Japan Institute of Business Law
Jun. 2017 	Chairperson of Egusa Foundation for International
cooperation in
the Social Sciences (current poition)
Apr. 2018 Adviser of Atsumi & Sakai(current position)
Jun. 2019 Auditor of the Company (current position)
Jun. 2022 	Representative Director Vice Chairman of Japan Institute ofBusiness Law (current positon)

Apr. 1984 	Joined Saitama Bank, Limited (currently Saitama Resona Bank,
Limited)Jun. 2011 	Executive Officer, General Manager of Group Strategy Division,
Resona holdings, Inc.
Apr. 2013 Executive Officer, Resona Bank, Limited
Apr. 2013 Executive Officer, Resona Holdings, Inc.
Apr. 2016 	Director and Managing Executive Officer, Saitama Resona Bank,
LimitedApr. 2018 	Representative Director and Senior Executive Officer,Saitama
Resona Bank, Limited
Jun. 2019 President and Representative Director, Resona Guarantee Co., Ltd
Apr. 2022 	President, The Saitama Resona Foundation For Industrial andEconomic Promotion (current positon)
Jun. 2022 Auditor of the Company (current position)
Oct. 2022 Part-time Auditor of Daizo Corporation (current position)

F-TECH CSR REPORT 2022

18

Response to the Revised Corporate Governance CodeWe are implementing the following measures in response to
the revised Corporate Governance Code.
About the Corporate Governance Code

■ Investment in Human Capital

We recognize that human resources who are diverse in terms ofgender, nationality, race, and other factors can be a source of acompany’s values and creativity, and are essential for improving
corporate value. Accordingly, we provide an environment wherea diverse workforce can flourish. We have established an HR
development policy and an internal environment development
policy to ensure diversity. These policies state our approach andmeasurable goals for ensuring diversity among core humanresources, including the appointment of women, foreign
nationals, and mid-career hires to management positions.
“Respecting people,” which is one plank of our corporate
philosophy, calls for our employees to recognize each other'svalues and respect each other regardless of gender, nationality,
race, or other barriers. We believe that creating new value fromdiverse perspectives is essential for corporate growth, and we
strive proactively to ensure diversity.

To promote diversity, we aim to create a healthy and comfortableworking environment that fosters diverse work styles and humanresource development. Specifically, we meet individually with
employees who wish to take leave or work shorter hours due tochildcare or other reasons. We also hold briefing sessions withmanagers in an effort to improve the workplace environment. As
part of our efforts to encourage men to take childcare leave, wemeet with eligible employees to determine their thoughts on
taking such leave. Our flextime system is set up to allow a
clearing period to be selected based on individual workplace
conditions. We have set our target for days of annual paid leave
carried over to “zero.” We have reached this target for generalemployees for 23 consecutive years. In July 2019, we set up a
“Takumi” (mentor) system as a new way effectively utilize theskills of retired employees who we have rehired. The system aims
to increase motivation and pass on skills. Skilled workers withadvanced skills in various areas are certified as "takumi." Theirremuneration levels are set according to their responsibilities andthe leadership roles they assume.

■ Female Managers
We received the “Kurumin” mark, attesting to our certification by
the Minister of Health, Labour and Welfare as a “child-care
supportive institution.” We are actively working to create anenvironment in which female employees can play an active role.
Attesting to these efforts, in April 2019 a woman was promoted
to the position of general manager for the first time. The
president also holds town hall meetings with female employees
in order to incorporate their opinions into business operations.
To ensure diversity among the management cadre that supports
the top management team, we aim to more than double thenumber of female managers by FY 2025 compared to FY 2020
figures, and to increase the percentage of female managers tomore than 10% of all managers by FY 2030.

■ Non-Japanese Managers
Overseas sales account for approximately 90% of the Group’s net
sales, and we are actively working to promote globalization
among our human resources as well as of our business. To recruit
non-Japanese and other global human resources, we conduct
recruiting overseas. In domestic recruiting, as well, we havespecified a target number of global human resources, beginningwith new graduate recruiting activities for fiscal FY 2023. We
currently have one non-Japanese manager. We plan to increase
the number of non-Japanese managers and employees by fiscal
FY 2025.

■ Mid-Career Hires as Managers
We hire mid-career professionals who can get up to speed
quickly. In FY 2021, mid-career hires accounted for 28% ofmanagement positions. We expect this figure to remain constantthrough FY 2025.
19

F-TECH CSR REPORT 2022

Number of Men and Women, by Position(As of April 1 for each fiscal year)

Fiscal year
Promotion to
management
positions2017 2018 2019 2020 2021
Men

10

13

7

8

6

Women

0

0

0

0

0

Men

166

177

171

175

162

Women

2

2

2

2

2

Men

19

19

17

16

18

Women

0

0

1

1

1

Men

23

27

30

34

35

Women

1

1

0

0

0

Men

38

45

49

50

50

Women

3

3

2

2

2

Managers

Department
manager

Sectionmanager

Coordinator

F-TECH CSR REPORT 2022

SocialF-tech Group aims to healthy and comfortableworking environment for employee based on
philosophy of “Respecting People”.
We promote initiative such as diversity andwork-life balance.

F-TECH CSR REPORT 2022

20

Creating a Comfortable Working Environment

We aim to create a secure, safety and comfortable working
environment for every employee based on our philosophyof respecting people.
Diversity Initiatives■ Promoting the Active Participation of Female
Employees
F-tech aims to create a workplace where everyone, regardless ofgender, can show their individuality and abilities. There havebeen great improvements to our working environment in thisregard, particularly within the manufacturing, engineering,development, and procurement departments, where mostemployees were male, and we are actively placing women in avariety of fields throughout the Company.
In the future, according to the Act on Promotion of Women’sParticipation and Advancement, we will promote efforts to hire
and promote women and train their leaders with the aim offurther expanding the advancement of women in the company.
Going forward, we will work toward improving the working
environment so that everyone can have a good work-life balanceand both men and women can enjoy fulfilling social lives.

■ Empowerment of Foreign Employees andRevitalization of the GroupThe F-tech Group has 18 overseas offices, and cooperation witheach office is essential for the growth of the entire Group. The
Company employs people of many nationalities, owing to its
active efforts to recruit foreign nationals. We also host technicalinterns and short-term trainees from overseas bases.

■ Promoting the Active Participation of People
with Disabilities

F-tech meets with special needs schools to exchange
information with a view to hiring people with disabilities. We
currently employ 22 people with disabilities, accounting for 2.4%of total employees, compared with the legally stipulated level of
2.3% (21 people).

Efforts to Improve the Work-Life Balance■ Promoting the Active Participation of Senior
Employees

In addition to providing an environment for people to work, we
also offer life planning seminars and other information to help
people think about working post-retirement. In July 2019, welaunched our “Takumi” (mentor) system to provide a new way for
retired employees to work, boosting retirees’ motivation while
passing on their skills. In this system, our talented workers withadvanced skills are recognized as “takumi,” and they play theimportant role of instructors who pass on their skills to theirsuccessors. Their remuneration is determined according to theirroles and responsibilities.

■ Reduction of Overtime Work
Expansion of the Flextime System●

Haga Technical Center●

Head office (from August 2020) Some parts of the Kuki region (fromOctober 2021)● Some parts of the Kameyama
region (from October 2021)●

Overtime Hours: Targeting Less than 20 Hours/Month

Number of rehired retirees(mentor candidates) (As of May 31, 2022) Total number rehired as part-time
employees: …………………………… 39

Fiscal year

2019

Average overtime
hours/month

11H

2020

2021

●

●

21

Of whom, rehired as Takumi mentors: … 15

F-TECH CSR REPORT 2022

➡ 5.9H ➡ 6.3H

Top Message

Governance

What is the F-tech Group?

SocialEnvironment

Global Initiatives■ Encouraging Employees to Take Their Annual
Paid Leave

We have set our target for days of annual paid leave carried overto “zero.” We have reached this target for general employees for
23 consecutive years. To encourage employees to take suchleave, we allow leave to be taken in half-day increments up 20
times a year within the scope of the system. This arrangement
gives employees the flexibility to take leave in accordance with
their personal circumstances, such as the need to provide
childcare or nursing care.

Aiming to reduceremaining days ofannual paid leave
to zeroAchieved for 23
consecutive years
Briefing session on the revised Child Care and Family Care Leave Act■ Supporting a Balance of Work with theProvision of Childcare or Nursing Care

We promote the following initiatives to foster a cooperative work
environment where supervisors and subordinates understandeach other regarding childcare and nursing care.
1 On our internal portal site, we provide the“Guidebook on Supporting a Balance between Workand Childcare/Nursing Care.”Since 2015, we have been developing a General Employer Action
Plan based on the Ministry of Health, Labour and Welfare's Act on
Advancement of Measures to Support Raising Next-Generation
Children. From April 2018 to March 2021, we held explanatory
meetings for managers on the childcare support system andadopted a system of interviewing employees before they takechildcare leave and before they return to work afterward. As aresult, we receive Kurumin certification for the second time inAugust 2021.

2 We brief managers on the revised Child Care andFamily Care Leave Act.
3 We post informational materials to encourage men
to take childcare leave.

Promoting a Return to Work after Taking Childcare Leave
Fiscal year

2017

2018

2019

2020

2021

Men

1

1

3

1

4

Women

6

6

3

6

1

Total

7

7

6

7

5

Returning to
work

6

6

6

7

5

(forecast)

The rate of childcare leave taken was 100% (percentage ofwomen who became pregnant who took childcare leave).
The return-to-work rate (percentage of men and women who
returned to work after taking childcare leave) was 93.7%.
・Employees can opt for shorter working hours for childcare untilchildren reach the end of the third grade of elementary school,
which exceeds the legal requirement. (Currently, 13 employees
take advantage of this system.)・Nursing care leave is available up to three times for a maximumof one year per family member, exceeding the legal limit.

Kurumin certification ceremony

F-TECH CSR REPORT 2022

22

VOI CE
Initiatives for Flexible
Work Styles

An environment that makes it easy formen to take childcare leave is in place.
Yuya Okada
Finance & Accounting Department,
Management Planning Division

I belong to the Finance & Accounting Department of theManagement Planning Division and am mainly in charge of overall
financial operations, journal processing and closing of accounts fortransactions with overseas subsidiaries. I have now taken childcare
leave for a little over a month from September to October 2021 dueto the birth of my second child, my first son.
In my family, my eldest daughter went to kindergarten by cartransportation, but my wife cannot drive after giving birth andcannot ask her parents to pick her up, so I took childcare leave andam responsible for housework and childcare, includingtransportation.
Before taking childcare leave, I had a vague idea of what a man
could do on childcare leave, but when I actually took childcare
leave, I had the opportunity to learn about the difficulties of daily
housework and childcare, such as shopping, cleaning, and laundry,
as well as taking care of my oldest son and daughter. I had a very
meaningful time during my one month there. Because of theCorona Disaster, I kept my outings to a minimum, but I was also
very grateful for the opportunity to provide mental care for my firstdaughter due to the birth of my first son.
The Finance & Accounting department, to which I belong,settles accounts four times a year, and during the settlement
period, all members of the department work together to put theaccounts together. The month of October when I took childcare
leave coincided with the month of closing of accounts, and I feltthat the fact that I was able to take childcare leave despite the busy
season was due not only to the cooperation of my colleagues but
also to the culture in the workplace that allows even men to takechildcare leave.
Through this experience of childcare leave, I learned theimportance of cooperation not only by mothers but also by fathersin this major life event of adding a family member to the family. If
any men are thinking about taking childcare leave, I hope they willtake it proactively.

Realizing that understanding of childrearing is spreading throughout theentire workplace
Kenji Kadoi
Prototype Manufacturing Section, Prototype Department,
Research & Development Division

I work in the Prototype Manufacturing Section at Haga TechnicalCenter in Tochigi and am mainly in charge of prototype productionof pedals and other control components.
With the spread of the coronavirus, it was thought thatvaccination would not be available for some time, so I tookchildcare leave for about two months from September to October
2021, including from the perspective of preventing infection.
During the childcare leave period, our couple took turns taking
care of housework and childcare. For the first month, I wasconstantly sleep deprived due to nighttime crying, anxiety about
whether the baby was breathing even when he was quiet, and giving
him milk every three hours, day and night. In the latter half of the leave,
I became accustomed to this rhythm, and the uneasy parts
were resolved, and I could afford to take walks with my child anddo light muscle training during the day to maintain my physical23

F-TECH CSR REPORT 2022

strength. I was able to experience the gender equality in the true
sense that words alone do not tell the story.
At the Technical Center, there had been no precedent for male
employees to take childcare leave, but I was able to take the leavethanks to the understanding of my supervisors, senior employees,
and colleagues at work. Before taking childcare leave, I talked tovarious senior employees about childcare, and some said that it was
no place for men, but when I actually experienced it, it was very
meaningful. On the other hand, perhaps it is precisely because welive in this day and age that men can also experience this.
Since my return from childcare leave, I have heard that more
and more men are taking childcare leave at the Technical Center. If
you are thinking of taking childcare leave, I hope you will takeadvantage of this system so that you can lead a fulfilling life,
working hard and raising your children as well.

Top Message

What is the F-tech Group?

GovernanceSocialEnvironment

Global Initiatives

Occupational Health and Safety Initiatives

Aiming to Improve Safety Levels throughout the GroupF-tech and FEG* have set a company-wide safety policy for FY 2021 as follows: "We aim to improve the safety level at all of our sites by
globally standardizing and sharing safety and health rules. and continue to implement occupational health and safety activities throughout
the Group.
At the company-wide Safety Committee, organized by F-tech and FEG committee members, there was a lively exchange of views on theitems pointed out by the committee, including improvements at each site, confirmation of the status of countermeasures, and responses torevisions in safety and health related laws and regulations. As in the past, the committee also set "Establishment of unified safety evaluation
and rules (routine/non-routine work)”. In addition to activities aimed at "Zero accident with lost workdays" and "Prevention of accident
without lost workdays," we are also working to eliminate commuting accidents and traffic accidents.
In FY 2022, as in FY 2021, we will continue our activities to improve the level of safety under the company-wide safety policy.
*FUKUDA ENGINEERING CO.,LTD., a wholly owned subsidiary of F-Tech■ Response to Revision and Enactment of Laws
and Regulations Related to Safety and HealthBecause "welding fumes" generated in metal arc welding may
cause health hazards to workers, the Order for Enforcement ofIndustrial Safety and Health Act, the Ordinance on Prevention ofHazards due to Specified Chemical Substances (the "Special
Chemical Ordinance"), etc. have been revised and enacted,
obligating businesses to take measures to prevent healthhazards. These revised ministerial ordinances and notifications
are sequentially enforced from April 1, 2021*.
*The increase in ventilation air volume, the selection and use of protective equipment,
and the appointment of a person in charge of specified chemical substance
operations, etc. will take effect sequentially from April 1, 2022 and the implementationof the fit test will come into effect on April 1, 2023, respectively.

We are taking measures to prevent health hazards at ourdomestic sites, such as measurement of welding fumeconcentration in the workplace, fit testing of masks, appointmento f c h i e f o p e r a t o r s o f s pe c if ie d c h e m i c a l s u bs ta nc e s ,implementation of special health checkups, safety and healtheducation, off-limits measures for unrelated personnel,
installation of cleaning equipment, and provision of effective
protective equipment, as mandated by the revision andenactment of laws and regulations.

■ Fostering a Culture of Safety

An important part of creating and maintaining workplace safety
and health is to follow basic rules such as work procedures,
wearing appropriate protective equipment, and the 5S's in theworkplace.
These rules are created and continually improved uponbased on past problems and a strong determination to "never let
the same thing happen again.
We will accumulate these rules as "no-no's" and use them as
educational materials, etc. in the future, and pass them on to ouremployees in an effort to establish an awareness and attitude ofcompliance with the rules and to foster a culture of safety.

Company-wide Safety Committee Discussion Materials

F-TECH CSR REPORT 2022

24

Efforts to Improve Quality

We aim to maximize customer satisfaction through quality
improvement.
Maintaining Good Quality Performance
FY 2021 was the second year of our 14th midterm management plan. As we head into FY
2022, the final year of this plan, we have steppedup our efforts to improve quality. During thepast two years, we have been affected by a hostof changes in the business environment,
including repeated production and personnel
adjustments due to the outbreak of COVID-19 inindividual regions. Nevertheless, we have beenworking to improve quality, and we have seen
improvements in customer registered defects(number of defects/defect index : Index Point),
the in-process scrap rate (PPM : Parts Per
Million), and scrap material cost. The Group’s
overall quality performance continues toimprove.
However, the operating environment inNorth America was more volatile than in otherregions. In many cases, we struggled to copewith daily shifts in production and personnel
levels, so improvement efforts stagnated. As theoutlook remains uncertain, we will continue
supporting improvement efforts via Japan. We
will also enhance management of local day-today production and personnel fluctuations. As aresult, we aim to reach our goals for the final
year of the mid-term business plan.

Defects Registered by Customers, by Yearer of in

2016

2017

Defect index (I/P :Index Point)s and index do
wn by

2018

2019

half since 201
6

2020

2021

FPMX

FPA

FEGQ

FTI

DM

FMTL

F&P

FPMI

FPG

FTW
FTZ
QFT
Kameyama
Kuki

2017

Our quality improvement efforts focus on areas of weakness, inwhich we analyze the causes of past quality defects. The main
issues facing the Group as a whole are an inadequate ability tohandle abnormal products (change point management) andproducts that remained undetected in the inspection process(missed inspections). This situation is due in part to recent
instability of personnel in individual regions.
Against this backdrop, we are going “Back to Basics” byreorganizing decision topics and rules for handling abnormal
products and change point management. The “Challenge forNew” initiative involves introducing automated quality evaluation
systems in each region
that incorporate theexpertise of veteraninspectors. As such,our problem-solving
approach involves
taking on new
challenge while also
remaining focused on
returning to thebasics.
F-TECH CSR REPORT 2022

cidentIn-Process Scrap Rate (PPM :Parts Per Million)

Quality Improvement Initiative: “Back to
Basics, Challenge for New”

25

Incidents

Numb

2018

2019

2020

2021

Numerous Quality Awards Received
Last fiscal year, we received numerous quality-related awards
from major customers and new customers in each region. We
earned awards for our recent quality improvement activities, aswell as for the stable launch of new models and products.
<< Awards >>• GM “Supplier of the Year Award”• TOYOTA “Excellent Quality Award”• Nissan “Nissan Global Supplier Award”
We continue to promote initiatives based on the F-tech Group's
quality policy, to "Maximize customer satisfaction by delivering
the highest value (quality).”

Top Message

What is the F-tech Group?

GovernanceSocialEnvironment

Global Initiatives

Relationship with Shareholders & Investors

We are committed to achieving more transparent operations
and a sustainable growth by ensuring timely and appropriate
disclosure of information.
Appropriate Information Disclosure(F-tech Corporate Governance Guidelines, Article14)
In its aim to build a relationship of mutual trust with all
stakeholders, including shareholders, the Company ensuresmanagement transparency by disclosing fairly and in a readerfriendly manner information, including legal disclosures,
management policies, financial status, and business initiatives, aswell as procedures and reasons in the appointment of the senior
management and nomination of, directors, and Audit &Supervisory Board Member candidates.

Constructive Dialogue with Shareholders

Communication with Shareholders &Investors
Based on the disclosure standards of the Tokyo Stock Exchange,
we disclose information to shareholders, supplier, investors andthe regional community in a timely manner while confirmingwith the Tokyo Stock Exchange and the general counsel. In orderfor our investors to understand our company, we provide various
opportunities for communication including an annual general
meeting of shareholders, financial results briefings, 1-on-1
meetings and telephone conferences. In addition, we have
prepared English-language materials for overseas investors, andwe are also working to disclose English translations.

(F-tech Corporate Governance Guidelines, Article 34, Paragraph 1)
Based on the recognition that constructive dialogue withshareholders is essential to enhance sustainable corporate
growth and increased corporate value over the Mid-Term
corporate value, F-tech uses every e ort to engage in suchmutual dialogue.

■ Policy Related to Constructive Dialogue with
Shareholders

Based on the recognition that meaningful dialogue withshareholders is essential to enhance sustainable growth and MidTerm corporate value, F-tech approaches these dialogues basedon the following policies.

The 66th Annual General Meeting of Shareholders in June 2021

1. To the extent reasonable, dialogues with shareholders are
conducted by the President and CEO, the director
responsible for IR oversight, other management, ormanagers from the division responsible for IR.
2. The division responsible for IR shall collaborate with andengage in meaningful dialogue with the internal related
divisions.
3. We shall explain to our shareholders in an understandable
manner, the strategies, investments, and Key performanceindicator (KPI) related to the Mid-Term Business Plan, andendeavor to disclose information for shareholders todetermine Mid-Term corporate value.
4. Division responsible for IR plans to conduct multiple IR
activities such as individual interviews, including financial
results briefings and facility tours and attending IR fairs

Online Streaming“Fiscal Year Ending March, 2021 Financial Results” in May 2021 and “Fiscal YearEnding March, 2022 2nd Quarter Financial Results” in November 2021 werestreamed online.

5. The executive officer responsible for IR conscientiously
conveys the Company policies to shareholders throughdialogue and shares any opinions he or she receives fromshareholders with directors and others.
6. In order for thoroughly fair information disclosure, theexecutive officer responsible for IR strictly securesimportant non-public information in accordance withcompany rules.

F-TECH CSR REPORT 2022

26

Relationship with Local Communities

Food Drive Event (Cooperate with Saitama Resona Bank, Limited)
We joint hosted “Food Drive” with Saitama Resona Bank in November 2021. A food drive isa form of charity that is conducted by a group of individuals or a corporation to stockpile
and distribute foodstuffs that leave over at home to people who cannot afford food. Morethan 560 food items were collected in 2 weeks through in-company donation. The items
were donated to 7 facilities in Kuki and Kazo city and supported many people.

こども食堂に寄付をしましょう！
持ち寄り期間

活動内容

11月8日(月)～ 19日(金)お家で眠っている食品を、処分される前に「こども食堂」など食の支援を行う施設に配り、生活支援を図る
活動です。

時間：AM8:00 ～ PM6:00
場所

エフテック第一工場食堂（打刻機前）
・持ち寄り品を入れる箱を準備します。その中に入れてください。
・協力人数把握のため、食品を入れる際は帳簿に社員番号を御記入ください。

集まった食品は、久喜・加須市内の「こども食堂」７カ所へ寄付させていただきます。（当社にて11月25日贈呈式開催）
注意いただきたいこと⚠

― 食品例 ―

 常温保存が可能なもの
 未使用・未開封のもの
米

レトルト
食品

缶詰
瓶詰

ジュース類 コーヒー類

油

調味料

お菓子

ｲﾝｽﾀﾝﾄ麺
乾麺

ふりかけ
海苔など

 賞味期限が明記されてる 賞味期限が2022年以降
 包装・外装が破損していない※ご不明点等ございましたら、総務部までお問い合わせください。

乾物

ご存じですか？SDGｓ

2015年9月に国連で可決された、2030年までに持続可能でよりよい世界を目指す国際目標です。 17のゴール・169のターゲットから構成されています。

こども食堂の応援活動は、Goal1「貧困をなくそう」、Goal2「飢餓をゼロに」、 Goal3「すべての人に健康と福祉を」、 Goal11「住み続けられるまちづくりを」、Goal12「つくる責任
つかう責任」に寄与します。

Cleanup Activities
Kuki Area

Cleanup at Bizenhorigawa River
11th Novenber, 2021
14th March, 2022
Total Participants: 118 people

Kameyama Area

The Adopt Program*:Cleanup
Green Place in Meihan IndustrialPark
12th June 2021,
13th November 2021,
Total Participants: 108 people*Adopt Program
An adopt program is an initiative that aims to achieve clean, trash and weed-free communal areas through volunteer cleanup activities, based on the ‘adoption’ of nearby parks and green
tracts of land by people of local communities. Kameyama city introduced this system in April 2007. Kameyama plant is the first participant in the city.

Haga Area

Cleanup Efforts in Haga Industrial
Park
28th May, 2021
20th July, 2021
21st October, 2021
Total Participants: 69 people

27

F-TECH CSR REPORT 2022

F-TECH CSR REPORT 2022

Environment

F-tech Group supports theachievement of carbon neutrality by
2050 and is working to reduce its
environmental impact by identifying"Reduction of CO₂ emissions" ,"Environmental
conservation of air, water and soil", "Saving natural
resources, and the reduction on water consumption andwaste reduction," "Chemical substances management","Development of environmentally friendly products" and"Biodiversity conservation" as important environmental issues.

F-TECH CSR REPORT 202228

Realization of a decarbonized society

We will challenge to achieve net-zero CO₂ emissions in our
entire business and contribute to the "mobility society of the
future" through our products.
New Challenges for a DecarbonizedSociety
While the world's full-scale efforts to address global warming
issues are attracting attention, Japan declared its policy of"aiming for a decarbonized society ,carbon neutral by 2050" in
October 2020. Automobile manufacturers have alsoannounced their intention to shift to electric vehicles (EVs) and
fuel cell vehicles (FCVs) and to achieve carbon neutrality.
We also considers the reduction of greenhouse gas
emissions that cause global warming to be an urgent andimportant issue, and has decided to work toward the goal of"achieving carbon neutrality by 2050" in order to aggressively
promote efforts to achieve carbon neutrality.

Product Response
Our products are important safety parts that functionally control
the basic performance of a vehicle. Currently, reduction ofenvironmental impact is required throughout the entire vehicle
lifecycle, from procurement of raw materials to use, disposal, andrecycling.
To this end, we have been actively working to reduce theweight of our products while maintaining safety andfunctionality in the trend toward EVs and FCVs, thereby
contributing to improved fuel efficiency.
In this way, we are committed to constant evaluation andimprovement to ensure that the environmental impact of ourbusiness activities is minimized not only from the perspective of
product manufacturing, but also throughout the entire life cycle.

Initiatives for CDP
We have been actively addressing environmental issues bydeveloping our environmental management system on a global
basis. We have shifted our environmental communication, which
was previously conducted individually with each automaker, toan evaluation system through a third-party organization (CDP*)
since FY2017, and received a "B－" rating in the CDP survey in
FY2021. We will continue to make maximum use of external
evaluations by CDP to further strengthen our own environmental
initiatives.

*CDP: Abbreviation for Carbon Disclosure Project. It is a non-governmental organization established in the United Kingdom that collects, evaluates, and discloses information on thestatus of environmental initiatives of countries, companies, cities, etc. around the world.

CO₂ emissions in our manufacturing area (Scope 1&2)
（t-CO2）140,000

120,275

86,987

120,000
100,000
80,000CO2 Emission Targets

60,000100% Reduction
from FY2017

40,00020,000
0

2017

2018

2019

2020

2021

2050 （FY）

CDP Evaluation

29

F-TECH CSR REPORT 2022

FY2021 Evaluation

Climate Change

Water Security

F-TECH CO. LTD.

B−

B−

Top Message

Governance

What is the F-tech Group?

Environment

SocialGlobal Initiatives

Disclosure based on TCFD recommendations

We see the various changes associated with climate change as an important opportunity, and have improved our corporate value by
proactively addressing this challenge.
In order to inform investors and stakeholders of these efforts, we are promoting disclosure in line with TCFD recommendations.

G o ve r n a n c e
The F-tech Group's environmental management system is inplace. (See diagram below).

■ Supervisory Functions by management
The Board of Directors deliberates and makes decisions onimportant management matters, including carbon neutrality,
which have a significant impact on climate change, as well asother legally mandated matters, and supervises the execution
status of operations by directors and executive officers.

■ Company-wide CSR Committee
The Company-wide CSR Committee has been established topromote the Company's efforts to address CSR issues on a global
basis, including environmental issues. The committee iscomposed mainly of executives in charge of each area ofexpertise. The committee monitors the status of autonomous
efforts to address CSR issues in each area of expertise, deliberates
on ways to make further improvements, and shares the results of
its deliberations on a global basis.

■ Environmental Management System
The F-tech Group's environmental management system has
been established in which the president of each overseas site is
responsible for environmental issues including climate change,
and the environmental manager and other staff in charge ofenvironmental management are appointed under him or her.

■ Compliance with Environmental Laws andRegulations

Based on our environmental philosophy, our group utilizes theISO 14001 environmental management system and strives tocomply with the regulations of each country and region, as wellas the requirements of stakeholders. There have been no serious
violations of environmental laws and regulations and nopayment of fines or other penalties, as well as occurrence ofserious accidents.

■ Internal Environmental Audits
The Group has been implementing a global environmental
management system based on the Japanese environmental
management system and energy management system.
In order to ensure that these management systems in Japanare compatible with global systems and standards at eachoverseas site, internal environmental audits are conducted on aregular basis. To ensure the effectiveness of these audits, we areworking to maintain, improve auditors’ quality and to ensure
fairness of audits.

F-tech Group's Environmental Management System
Director in Charge of Environment (Division Manager of
Quality Assurance Division)

Report to the Board of Directors

JPN Secretariat
Global Environment Conference*General management of all F-tech

4 sites in Asia

3 sites in China

7 sites in North America

6 sites in Japan

Site Manager

Site Manager

Site Manager

Environmental Management
Officer• Environmental
Management Officer• Person in charge ofpractical operation(Local staff)

Japanese
expatriates(Support)

Related department• Environmental
Management Officer• Person in charge ofpractical operation(Local staff)

Japanese
expatriates(Support)

Related department• Environmental
Management Officer• Person in charge ofpractical operation(Local staff)• Site Manager
Japanese
expatriates(Support)

Related department• Person in charge of environmental
management• Environmental Management
Promotion Officer

Related department

F-TECH CSR REPORT 2022

30

Disclosure based on TCFD recommendations

R isk C o n t r o l

Process for Identifying Important Issues
We identify issues by considering the risks to our business posed by climate change and the demands and expectations of our customers
and other stakeholders. The issues identified are organized into “Materiality map” and reflected in our mid- and long-term business plan.

■ Process for Identifying Important Issues

Organize and identify issues
and requirements fromstakeholders

Identification ofimportant issues for
F-techReflection in midand long-termbusiness plan

Materiality Map
大● Social contribution activities

Requests and expectations from stakeholders● Biodiversity conservation● Contribution to weight reduction of automobiles● Chemical substances management● Strengthening the alliances with supplier andmanagement of environmentally impacting
substances throughout the value chain● Social contribution activities

and development of safe and environmentallyfriendly products● Saving natural resources, and the reduction onwater consumption and waste reduction● Achievement of carbon neutrality by 2050

● Compliance with environmental conservation,

environmental laws and regulations, andenvironmental standards with regard to air,water and soil ,etc

● Establishment and reinforcement of thestructure based on the environmental
management system● Provision of data to various major business

partners● Cultivation of personnel engaged inenvironmental and energy conservation● Development of energy management system(ISO 50001) to all our Group companies

大Importance in our business

31

F-TECH CSR REPORT 2022

Top Message

What is the F-tech Group?

GovernanceSocialEnvironment

Global Initiatives

Disclosure based on TCFD recommendations

S t r at e g y

Basic approach to the environment,
including climate change issues
As a manufacturer of functional parts for chassis system, we haveestablished an integrated processing system from design anddevelopment to plastic forming, welding, painting, and assembly,
all with consideration for safety and have developed ourtechnology. Recently, in the automotive industry, production andsales of battery-powered vehicles such as hybrid car and Electric
Vehicle (EV) are becoming mainstream. In order to continue tobe selected by automakers as a manufacturer of functional partsfor automobile undercarriages, we have to mass-produce
lightweight products that contribute to fuel-efficientperformance of automobiles in a safe and environmentallyfriendly manner.
On the other hand, automobiles are manufactured throughmany production processes by many companies and sold togeneral consumers. After being used for a certain period of time,they are disposed of, for which a large amount of environmental
resources are used during this life cycle of automobiles.
We think it our obligation to be aware that our businessactivities are conducted within this lifecycle, and we haveestablished our environmental philosophy and basic
environmental policy with a strong awareness of our
responsibility to contribute to the realization of a sustainable
society by actively working to reduce environmental impact.

F-TECH Environment Philosophy , F-TECH Basic Policy

─ F-TECH Environment Philosophy ─
In order to become No.1 in the environmental area in the automotive industry,
we will make the most effort to establish a future with rich nature and low carbon by having each of us
observing our understanding of global environmental issues and proactively engaging in the continuouspreservation of the environment in all areas of our corporate activities.

─ F-TECH Basic Policy ─
１. In order to form a sustainable society, we will work on reduction of environmental burden and conservation of
biodiversity in all business activities related to the manufacture of undercarriage automobile parts.
● Work to reduce environmental burden throughout the product’s life cycle.
● In the development area, we will reduce CO₂ emissions by reducing the weight of our products.
● Conserve resources and save energy in all our business activities.
● Continue zero emissions of waste in all our business activities.
● Work on social contribution activities leading to conservation of biodiversity.

2. Comply with laws concerning environment and energy and other requirements to agree to
3. Strive to continuously improve the environment and energy management system and prevent pollution.
4. Establish environmental and energy targets and review them on a regular basis.
5. Ensure that you can use information and necessary resources to achieve environmental and energy targets.
6.	S trive to train people with high awareness of the environment through energy saving activities andenvironmental preservation activities.
7. Strive to introduce energy-efficient products, equipment and to make the best use of energy-saving services.
8. Disclose environmental information on business activities appropriate

F-TECH CSR REPORT 2022

32

Disclosure based on TCFD recommendations

Enhancement of environmental
management system
In order to minimize the environmental impact of the businessactivities, our Group is working on obtaining ISO 14001
certification, an international environmental standard. In 1998,
we began efforts to acquire ISO 14001 certification at ourdomestic sites, and as of now, all our R&D and production sites
have been certified. The most recently, we completed to register
the certification in May 2017for Mexican site established in 2012.

The remaining sites (FEGQ/FTI) are in the process of acquiringcertification reflected in mid-to and long-term plan. In addition,
after we began global expansion of our environmental activities
in 2008. We obtained ISO 50001 certification (the internationalenergy standard,) in 2013. Since 2015 we have established“Global F-tech Energy Management System” as a common
system to all Group companies and have been working to
expand ISO 50001 certification to our overseas sites.

M et r i c s a n d T a r g e t sLong-term Target
As part of our efforts to realize a sustainable society, F-tech is
working to reduce its environmental impact by focusing on thefollowing important environmental issues: “Reduction of CO₂
emissions”; “Environmental conservation of air, water and soil”,

Our 2050 Global Environmental Target (New target)“Resource saving and reduction of water consumption andwaste”; “Management of chemical substances”; “Development ofenvironmentally-friendly products”; and “Biodiversity
Conservation”. In 2017, we established quantitative targets forthe reduction on CO₂ emissions, water consumption and waste
as part of our “2030 Global Environmental Targets”.

Our 2030 Global Environmental Targets(*Items to be reviewed in FY2022)

18

The achievement of Carbon neutrality by 2050

• Reduce CO₂ emission intensity by%Base year: Comparison with FY 2017 Index: Sales• Reduce the total CO₂ emissions%• Reduce water consumption intensity byBase year: Comparison with FY 2017 Index: Sales

100% in 2050

by14

Base year: Comparison with FY 201713%
• Reduce waste intensity byBase year: Comparison with FY 2017 Index: Sales*CO₂ emissions refer to energy used in the plant excluding CO₂ gas emission from distribution, company vehicle and welding*In order to make greenhouse effect gas emission and water use more consistent, sales include inter-group transactions

33

F-TECH CSR REPORT 2022

Top Message

What is the F-tech Group?

Governance

Environment

SocialGlobal Initiatives

Index and Target

Global Environmental Targets for 2030 Promotion Results

CO2 Emissions Results
Target〈Reduce CO₂ emissions per unit of production by 5.6% compared to FY2017〉→ Results The target was achieved with a〈 16.3% reduction. 〉

Production decreased at many bases due to
production adjustments caused by the Corona disasterand semiconductor shortages.
In terms of CO₂ emissions, they decreased by 1.7%
(1,490 t-CO₂) from the previous fiscal year. In terms of
CO₂ emissions by region in FY2021, the China base wasaffected by a temporary shutdown, and CO₂ emissions
decreased by 13.5% year-on-year, but emissions in all
regions except for the China base have turned toincrease. Overall sales increased by approximately 5%,
and compared to FY2020, there are signs of recovery inproduction. Energy usage efficiency is improving
mainly at the China and North America sites due to theeffect of progress in CO2 emission reduction measuresat each site.

Japan

North America

China

Asia•Oceania(t-CO2)200,000

Per Unit of production(t-CO2/Sales per Million yen)

0.443

0.500

0.432

0.415

0.396

160,000
120,275 120,531
120,000

108,390

88,4770.371

86,987

0.400
0.300

80,0000.200

40,000

0.100

0

2017

2018

2019

Asia•Oceania

13%

China

26%

North America

36%

Japan

24%

0.000
2021 (FY)2020

Water Resource Usage Results
Target〈4.4% reduction in water consumption per unit of production compared to FY2017〉→ Results The target was achieved with a〈 5.6% reduction. 〉

Water consumption decreased by 11.4% (88,667 m3)
compared to the previous fiscal year that means the
reduction of water consumption by more than 2 times.
The majority of the Group's water consumption is used
for product cleaning, surface treatment,
electrodeposition coating, and steam in the painting
process, and many locations are highly dependent onwater to maintain water quality in the painting process
and to prevent adverse effects on quality. Due to thedeterioration of FY2020 results, we have implemented
a priority management program to reduce water
consumption in our group in FY2021. Comparisonswere made with sites that have made progress in
reducing water consumption, and effective measures
were shared.

Japan

North America

China

Asia•Oceania

1,200,000
1,000,000

Per Unit of production(t-CO2/Sales per Million yen)

(m³)

3.70

3.48
3.12

3.08

3.14

2.94

846,332 858,573 819,543
778,565
800,000

2.85
689,898
2.00

600,000
400,000

1.15
200,000
0

2017

2018

2019

2020

Asia•Oceania

21%

China

30%

North America

38%

Japan

11%

0.30
2021 (FY)

Waste Emissions Results
Target〈4% reduction in waste emissions per unit of production compared to FY2017〉→ Results The target was achieved with a〈 22.6% reduction. 〉

Waste emissions decreased by 11.2% (565 tons)
compared to the previous year. By region, the China,
Asia, Oceania, and Japan sites in particular saw waste
emissions decrease by approximately 20% or morecompared to the previous year.
The reduction in emissions was due to theimplementation of efficient drying of sludge fromwastewater treatment using waste heat fromcompressors at the China site and the treatment ofnonferrous metal waste as valuable resources at theJapan site by sorting waste that had previously been
disposed of as waste. We will continue to work
together as a group to share effective measures andreduce waste emissions.

Japan

North America

China

Asia•Oceania

0.030

16,0000.025
0.020

12,0008,000

Per Unit of production(t-CO2/Sales per Million yen)

(ton)

6,774

0.023

0.025

0.023
0.019

0.020
0.015

5,739

6,015

5,065

4,500

0.010

4,000
0.005
0

2017

2018

2019

2020

Asia•Oceania

7%

China

14%

North America

64%

Japan

14%

0.000
2021 (FY)F-TECH CSR REPORT 2022

34

Index and Target

The 14th Mid-Term Business Plan

FY2021 is the second year of the 14th Mid-Term Business Plan,and in FY2020 we were greatly affected by COVID-19 and revisedpart of our mid- to long-term plan.
In FY2021, we were severely affected by shutdowns at someof our sites due to COVID-19 and by a decrease in production
volume, and production adjustments due to a shortage ofsemiconductors. But compared to FY2020, there was a recovery
trend throughout the Group. As a result, we achieved our targets
on the reduction of CO₂ emissions, water consumption andwaste reduction per unit of production as environmental
indicators.
As for the unit requirement for water consumption, which
did not reach the target in the previous fiscal year, we conducteda survey on the status of water resource use, ascertained thestatus of water use and management levels in the painting

process and compared the number of times of maintenance was
performed at each site in FY2021. We found that there weredifferences in management methods among sites due todifferences in the scale of facilities and other factors even within
the Group. In addition, we conducted a survey on the status ofwater reuse at some sites, and will continue to examine ways toreduce water consumption, taking into account the impact tothe quality.
Regarding biodiversity initiatives, we endeavored to increase
the number of participants, however, due to COVID-19, somelocations were unable to implement social contribution activities
as they used to do.
At the World Environment Conference held by region in
FY2021, many of the devised ways of activities during the periodof COVID-19 were reported.

Outcome of the second year of the 14th Mid-Term Environmental Plan (2020-2022) (Main plan) *Target: F-Tech Group (6 domestic sites, 14 overseas sites)
Areas

Reduction of greenhouseeffect gas emission
intensity

Production

PeriodEnhancement details

Reduction of water
consumption intensity

Reduction of waste
intensity

FY2020

FY2021

FY2022

Plan[Improved by 4.2%(Compared to 2017)][Improved by 5.6%(Compared to 2017)][Improved by 7.0%(Compared to 2017)]

Achievement

Improved by 10.6%

Improved by 16.3%

Evaluation

〇

〇

Plan

[Improved by 3.3%(Compared to 2017)][Improved by 4.4%(Compared to 2017)]

Achievement

Decrease by 11.5%

Increase 5.6%

Evaluation

×

〇

Plan

[Increase by 3%(Compared to 2017)][Increased by 4%(Compared to 2017)]

Achievement

Increased by 8.0%

Increased by 22.6%

Evaluation〇〇

Management/
Corporate
activities

Establishment andOperation of the Global
environment management
systemReinforce of biodiversity
initiatives

Achievement

Organize Ledger

Maintain Ledger

Evaluation

〇

〇

Plan

[Launch][Establishment completed]

Achievement

Manual maintenance completed

System establishment achievement

Evaluation

〇

〇

Plan

New Guideline in effect

Increase the number ofParticipants (more than 20%))

Achievement

Expansion of guideline

Increase the number of participants (morethan 20%)Delayed

Evaluation〇

×〇：Target achieved ×：Target not achieved*The targets of “Development and Engineering” are not public from the perspective of confidentiality

35

F-TECH CSR REPORT 2022

[Increased by 5%(Compared to 2017)][Organize facility management ledger/Proposal of energy saving based on ledger]

Plan

Expansion ISO50001 in theGroup[Improved by 5.5%(Compared to 2017)][Start the operation]

Increase the number of participants (morethan 25%)

Top Message

What is the F-tech Group?

GovernanceSocialEnvironment

Global Initiatives

Index and Target

FY2021 Environment and Energy Plan (Domestic)

In FY2021, we were able to achieve our targets for many
management items. However, we were unable to achieve ourCO₂ emissions target per unit of product .
The main reasons for this were…
・The energy use efficiency was lowered due to a significant
decrease in the number of products produced as a result of
production adjustments due to the effects of the corona disasterand the shortage of semiconductors.
・The air conditioning efficiency dropped significantly due to theimplementation of constant ventilation to prevent corona

infection.
・The increase in energy demand due to the addition of testing
facilities at the Kuki and Haga sites.
Until now, we have been evaluating efficiency based onenergy use according to the number of units produced, but thesame evaluation cannot be made for test facilities, and we are
currently discussing appropriate evaluation methods.
Our group is working aggressively to realize our goals.

Results of the 2021 Environmental and Energy Plan*
Subject: F-Tech's three domestic offices (Kuki, Kameyama and Haga)
Control items

Reduction of CO₂
emissions

Energy management
evolution

Fulfillment of Social
Responsibility

Control level

Result（Full year estimates)

Estimation

CO₂ emissions per
production unit

All domestic sites (Kuki, Kameyama, Haga )2% improvement from FY2019 = 98 point

112.4Point
12.4%deterioration

×

Reduction of CO₂
emissions throughmeasures

Reduction by measures(Kuki•Kameyama•Haga)
104.3t-CO₂or higher

332t-CO₂○

Overseas deployment ofISO50001

Maintenance of equipment ledger,Energy saving
proposalCompletion ofequipment ledger
maintenance○

Establishment/operationof global environmental
management system

Established system,
Establishment of environment management system System operation planedin 2022

TargetContribution activities toLocal Communities

Participation rate of 25% or more /Regular employee at each site(Total):199

Participate 355○○〇：Target achieved ×：Target not achieved*For confidentiality reasons, we refrain from disclosing the target of "Development and Engineering."

F-TECH CSR REPORT 2022

36

Index and Target

Material flow(FY2021 Result)

INPUT

OUTPUT
Whole group

Water resources

690 Km³

4,500 tWastesResearch &Development

Of which, direct landfill 1,438 t
outside amount

Energy186,574 MWh
CO2City gas
Natural gas
LPG
Gasoline
Diesel fuelKerosene

Gasoline
Diesel fuel4,822 Km³

Production

3,146 Km³

Stamping

3,242 t86,987 t-CO2

Welding
Painting

205 KℓAssembly

144 KℓCompany car

7 Kℓ

67 Kℓ

Shipping

5,451 t-CO2

1,999 Kℓ

Customer (Car manufacturer)

End user• The CO₂ emissions of the OUTPUT are calculated by multiplying the energy consumption of the INPUT by the CO₂ conversion factor.
• The calculation method of CO₂ is based on the "Greenhouse Gas Emissions Calculation and Reporting Manual" of the Ministry of Economy,
Trade and Industry and the Ministry of the Environment and the WRI/WBCSD "The Greenhouse Gas Protocol.
• Domestic electricity is calculated based on the latest coefficient for each electric power company.
• The data covers the period from April 2021 to March 2022.
37

F-TECH CSR REPORT 2022

Top Message

Governance

What is the F-tech Group?

Environment

SocialGlobal Initiatives

Index and Target

FY2021 F-tech Environmental Accounting

F-tech has been preparing for environmental accounting since
the publication of our Environmental Report before it became a
CSR report.
We believe that accurately identifying, measuring, totaling,
and analyzing the amount of investment in and cost ofenvironmental conservation, and knowing the effects of thatinvestment and cost, is important for further improvement of ourinitiatives and for fulfilling our accountability to stakeholders.
We are considering the possibility of including overseas
group companies in our calculations to the extent possible.

Environmental Conservation Costs

Amount(thousand yen)Classification
Cost in business area

①Pollution Prevention
Cost②Global Environmental
Protection Costs③Resource Recycling
Costs

Main Initiatives

FY2019R&D costs
Social activity costs

FY2021Prevention of air and water pollution

15,291

14,781

19,486

Capital investment for energy saving, management costs of CFC-containing
equipment, and appropriate treatment costs

110,410

20,317

24,890Proper disposal costs of industrial waste

18,061

18,811

12,858

143,762

53,90957,234

9,003

6,536

7,268

1,090,000

856,000

731,000

2,151

1,920

1,795

1,244,917

918,365

797,297

Total

Management activity costs

FY2020ISO certification cost, CSR report cost, environmental measurement cost, etc.
Research and development to reduce environmental impact
Participation in, donation to, and support of environmental conservation
activities
Grand Total

Economic benefits associated with environmental protection measures
Classification

Amount(thousand yen)

Effects

FY2019FY2020

FY2021

Benefits

Income from valuable resources

423,750

431,949

688,824

Cost saving

Cost savings from energy–saving activities

14,924

19,23015,953

Grand Total

438,674

451,180

704,778

Environmental Conservation Effects
Classification

Environmental conservation effects
related to resources used in businessactivities

Environmental conservation effects
related to environmental impact andwaste emitted from business activities

FY2020Usage
amountFY2021
Usage
amountFY2021
Reduction bymeasures

Unit

Total energy consumption

GJ

254,067

231,264

225,1658,997Electricity

GJ

194,906

176,067

172,1428,870

City gas

GJ

45,01942,67041,258

127

LPG

GJ

14,082

12,497

11,6960Diesel fuel

GJ

60

30

69

0

Water resourcesm3

75,87076,85861,6290

CO₂ emissions

t-CO₂

12,34911,233

9,590

342

Thousand yen/t-CO₂

336

49

65

-

t

0.9

0.9

1.7

0

t

414

444

404

0

t-CO₂

2,208

1,680

1,567

173

In-house carbon value
Specific chemical
emissions
Amount of wastes andothers emissions

Emissions of Environmentally Hazardous
Substances from Transportation

FY2019Usage
amountEnvironmental performanceindex

CO₂ emissions*The calorific value of the GHG emissions calculation, reporting, and publication system based on the Law Concerning the Promotion of the Measures to Cope with Global Warming inJapan is used in the calculation.
*Our environmental accounting is calculated in accordance with the "Environmental Accounting Guidelines" of the Ministry of the Environment, and only shows activities in Japan.

F-TECH CSR REPORT 2022

38

Index and Target

Supply Chain Management

Grasping the greenhouse gas emissions
in the value chain

Purchasing Policy
The Purchasing Department will conduct fair, equitable, andhighly transparent transactions in accordance with theCompany's "Action Guidelines" and promote initiatives aimed at
coexistence and co-prosperity with suppliers.

Environmental Conservation Effect(t-CO2)

5,000
95.7

1. Realization of optimal cost structure
2. Procurement of attractive goods (products) based on QCD(Quality, Cost and Delivery)
3. Pursuit of logistics efficiency

2,000

Purchasing Policy briefing
The purchasing policy briefing is held every year at a venue, but
in consideration of preventing infection to visitors and our
employees due to the corona virus, we will not hold it again thisyear and will only distribute information. In March 2021, we
distributed purchasing policy briefing materials and examples ofour environmental efforts to 80 business partners, and asked
them to cooperate in our environmental efforts status survey.

Environmental Initiatives Status Survey
1. E nvironmentally Impacting Substance Survey
1) Energy consumption
2) Water consumption
2. E stablishment and achievement status of CO₂
reduction targets
3. Status of biodiversity activities
4. S haring of improvement measures for energy
saving, water consuption, and waste discharge

39

F-TECH CSR REPORT 2022

100.0
92.0

0

80
60

1,851

2017

40

1,615

1,000

(FY)

• Establishment of Environmental Management System• Compliance with Environment-Related Laws and Regulations• Implementation of management of chemical substances
contained in products• Identification and reduction of greenhouse gas emissions

100.0

(%)

100

3,000

We will strive for mutual understanding with our business
partners as a good partner producing better products, and build
a relationship of trust with the idea of coexistence and mutual
prosperity by making full use of mutual wisdom and ingenuity
from an equal standpoint.

The F-tech Group has established the "F-tech Green Purchasing
Guidelines" as a basic concept for green purchasing, whichprioritizes the purchase of environmentally friendly parts,
materials and products. We request our suppliers to take thefollowing actions.

100.0

Submission Rate

4,000

Partnerships with Business Partners

Green Purchasing

CO2 emissions

2018

669

620

549

2019

2020

2021 (FY)

20
0

5,000

Examples of Environmental
Improvement
1. Reduced the environmental load associated with movementby maximizing the use of web meetings. We refrained frommoving within the prefecture as much as possible andutilized the Web.
2. Reduced our CO₂ emissions by improving packaging forexport and increasing loading efficiency, resulting in a
reduced number of containers increasing loading efficiency.

Management of Chemical Substances
Contained in Products
The Group has established a management system at each site tocomply with regulations on chemical substances contained in
products, and conducts IMDS* surveys.
The substances that are hazardous to humans and theenvironment and whose use is prohibited or regulated by law
are listed as "F-Tech Product Chemical Substance Management
Standards” and the use of these substances is strictly prohibited.
We are also working to eliminate these substances throughgreen purchasing activities with the understanding of our
suppliers, and providing products that do not contain thesesubstances to our customers.
*IMDS: International Material Data System (Material Data Base for Automotive
Industry)

Responsible Mineral Procurement
There are international concerns that purchase of minerals
produced in conflict area may lead to the financing of armed
groups that commit acts of violence and promote the violationsof human right such as child and forced labor.
Therefore, we will therefore investigate mineral procurement
related to not only conflicts, but also human rights abuses,
environmental destruction, and other illegal activities.
We are committed to purchasing products that do notcontain minerals originating from conflict zones or high-riskareas.
We will continue to implement initiatives for "Responsible
Mineral Procurement" using the internationally formatted
CMRT*2 (latest version) published annually by RMI*1.
*1 RMI: Responsible Minerals Initiative (Conflict Minerals Free Initiative)*2 CMRT: Conflict Minerals Reporting TemplateTop Message

T OPICS

Governance

What is the F-tech Group?

SocialEnvironment

Global Initiatives

Regional Environmental Conferences in FY 2021

Since 2009, we have held the F-tech Group Global Environmental Conference, a gathering for major Group companies from around theworld.
In FY 2021, we were unable to hold the conference in person due to COVID-19. Instead, we held regional environmental
conferences online in North America, China, and other parts of Asia.
At these environmental conferences, we focused on exchanging opinions about region-specific initiatives and problems—anapproach that differed from that of global environmental conferences. Instead, we spent the limited amount of time available in theactive exchange of opinions within the region or between countries.
This year, we gathered 60 new environmental measures from 14 domestic and overseas sites. These efforts resulted in savings ofapproximately ¥81 million in FY 2020.
Throughout the Group, environmental measures undertaken to date have resulted in improvements of approximately ¥550 million
in terms of reduced environmental impact and manufacturing costs. The two main topics communicated by the secretariat at thesemeetings are outlined below.

1 Revising Our Targets to Archieve Carbon Neutral by 2050
The F-tech Group’s sense of awareness of environmental issues has

emissions to virtually zero by 2050, we are rolling out plans at eachchanged substantially. At the behest of our stakeholders, we haveof our bases to lower CO₂ emissions by 3% each year. These plans

made “achieving carbon neutrality by 2050” a key issue.

are in addition to efforts to date focused on managing CO₂

In 2021, F-tech’s Board of Directors passed a resolution on“initiatives to achieve carbon neutrality by 2050.” To reduce CO₂

intensity. Specific measures are to be determined and involve
launching a project that the Company’s president will head.

2 Enhancing Initiatives to Address Water Risk
Water risks such as drought, increased flooding, water pollution,water use monitoring points and the use of reused water. To further

and limited availability of water are emerging as a management

reduce water consumption, first we need to made visible theissue that companies cannot ignore. Accordingly, the secretariat

amount of water we are currently using. As some locations wereexplained that the main theme of the world environmental

unable to determine the amount of water used in certain processes,

conference will be a focused evaluation of measures to reduce

we asked that they at least track water used throughout thewater consumption. The Group's water use is closely tied to its

painting process. Only three of our 13 production sites are reusing

production activities and product quality, so water use cannot bewater. We will continue to study ways to reuse water effectively,

reduced easily. In 2021, we compared the use of water resources attaking into account its impact on quality, as water reuse is key toour sites and shared the results of our research on the status of

reducing the amount we use.

In FY 2021, we decided on excellence measures to serve as a model for sites in each domain.
Excellent energy
conservation measures

DYNA-MIG: Project to reduce natural gas use
Welding cells

Atmosphere

Filtering/CAMFILFMTL: Automatic on/off control of water usedfor 3rd flush/pure water spray flush

Automatic on-off controlof valves

Hot air
Reuse as factory heating

By increasing CAMFIL filtration equipment, we filtered
more hot exhaust from welding areas and reused it,
thereby reducing the use of natural gas.

Excellent wasterelated measures

Excellent measuresrelated to water
resources

FTW: Reducing waste by reusing waste heatto dry sludge

By using waste heat fromcompressors to improvesludge drying, we reduce
sludge emissions by 35%.

We reduced water consumption by automating the on/off control of water usedin the paint rinsing process. We installed component sensors to regulate flows as
production conditions required.

Excellent CSR
measures

FPMX: Increased environmental awareness byfamilies

We devised social contribution activities amid COVID-19 and implemented
environmentally friendly activities for families.

F-TECH CSR REPORT 202240

Eco-Friendly Products and Technologies

We embrace a motto of environmentally friendly
development and design, and we relentlessly pursue
optimal product design using proprietary technologies.
Contributing to the Environment by
Making Products Ever More Lightweight
In recent years, the rate of change has accelerated throughout
the automotive industry due to the shift toward electric vehicles(EVs), in order for us to reduce environmental impact and meetrequirements to lower CO₂ emissions. One important way to
reduce environmental impact is by making vehicles moreweight-saved, as heavier vehicles typically have lower fueleconomy, leading to higher CO₂ emissions. The recent shift to
EVs has presented the problem of weight: EVs tend to be heavier
than conventional gasoline-powered vehicles due to their heavy
batteries. Each year, the call to reduce the weight of our products
becomes more pronounced, as well, and we must continue torespond to these demands.
To address this situation, we will maximize the use of our
independently developed simulation technology while evolving
and developing our production technology capabilities. In
addition to the goal of creating lightweight, high-strength, andhigh-rigidity products, we are developing products that takeenvironmental issues into consideration.

Using Simulation Technology in ProductDevelopment(In the case of “Axle Beam”)
Recently, axle beam development has been subject to a numberof factors. Vehicles have been growing heavier, as more functions
are added and greater emphasis is placed on safety. As a result,the load on our products has been increasing.
Axle beams are closely linked to a vehicle’s driving
performance. By making the most of our proprietary technology
for simulating optimization, we have succeeded in developing a
product that offers improved performance but at the same timeoffers a 9% weight reduction from conventional products. We
have achieved this by identifying the areas that are important forcontrol and finding an efficient product framework thateliminates waste. Setting up our aim of "environmentally friendly
development and design," we will further reduce CO₂ emissions
during parts fabrication. We will also lower environmental impact
by utilizing various simulation technologies by making further
improvements of CAE evaluation technology to the eliminationof prototyping.

41

F-TECH CSR REPORT 2022

■ Axle beam weight

Required performance■

Weightsavingsd
se ce
reaman
c
r
n
I fo
r
pe

Conventional productNew product

VOI CE
Development That Contributes
to Society and the Environment

The automotive industry is experiencing
major changes. Against this backdrop,
we continue to aim for optimal autoparts design that contributes to theenvironmental impact.
Tsukasa Shirataki
Design Section 1, Product Development Department,
Research & Development Division

Tireless Efforts to Reduce Weight in the Shiftto EVsAs a university engineering student, I wanted to be involved indevelopment and design in the future. Although I did not clearly
decide on working for the company manufacturing automotive
parts at that time. However, I began my career by working in theautomotive industry, a key industry in Japan. I feel fortunate to be
involved in this industry and have been engaged in development
and design at F-tech in this "once-in-a-century" period of greatchange within the industry. Since being assigned to Research andDevelopment Division, I have spent more than a decade overseeing
axle beam design. On a daily basis, I think about how to improve
the safety stability and riding comfort to drive, which areresponsible for “Drive” “Turn” and “Stop” of the automobiles. The
shift toward EVs has highlighted to society the environmental
impact of manufacturing and driving automobiles. As a result, weare being called on to reduce weight further and achieve morerigid configurations. Weight reduction, in particular, is essential for
extending a vehicle’s cruising range. I believe that the ongoing
pursuit of weight reduction is essential for us designers, given the
demands of the times to lower CO₂ emissions and otherenvironmental impacts.

Promoting Synergies and Growth through the
Combination of F-tech’s Accumulated
Technology-Based Knowledge and Experience
I am keenly aware of what it is like to embrace new discoveries andface major challenges in the process of product development anddesign. The parts we designed had not been made possible by dintof each employee’s experience, the connections among
employees, and F-tech’s accumulated technical expertise andknow-how. By building on this trove of knowledge with related
divisions work together, harnessing their originality and ingenuity
make it evolve to higher-value-added products. This feeling ofreality makes my development and design work rewarding, and it
drives me forward.
I am reinvigorated in my determination to continue evolving
and growing with the Company, making the most of theknowledge, experience, and community I have cultivated at F-tech.
At the same time, I will pursue better product design that helps toreduce environmental impact, upholding the spirit of challengethat pervades at F-tech.

F-TECH CSR REPORT 2022

42

JapanGlobal Initiatives

Kuki Plant (Kuki City, Saitama)

18th April, 2022 …Praised Creativity Award by the Minister of Education, Culture, Sports, Science and Technology
The Specifications Improving of Ultra-precision Forming for Automotive Components
FUT-1 forms automobile components of thickness 12mm precisely.
While improving the mold, we focused on the cutter that cuts
scraps in the sizing process.
Due to problems with the durability, the frequency of
replacement was high and its work required a lot of man-hours andcosts. Therefore, the member changed the specification of thescrap cutter from the integrated type to the chip that they devisedand designed. (figue1) We selected the best tip material from

Comparison of Specification

among many kinds, and succeeded after several attempts.

BeforeCutting blade integrated,.

After

Cutting blade tipped type,.

In comparison before and after improvement, the purchasing costis ▲78%, the usable limit is 280% UP, the usable blade surface is400% UP, and the replacement man-hours are ▲60%, the total cost
reduction is ▲95%.

Can be used twice front and back,requires replacement of the entire unit.

Rectangular, can be used twice front and back=> can be used 8 times.
Only the tip part, fixed with a single bolt, canbe replaced.

In addition, this work was praised Creativity Award 2022 by the
Minister of Education, Culture, Sports, Science and Technology.

Kameyama Plant (Kameyama City. Mie)

Intermittent Operation of 350t Hydraulic Pump
The 350t press machine drives the hydraulic pressure of the leveler
equipment and the clamp cylinder of the moving bolster with theIt holds MB clamp pressure until the internal pressure of theaccumulator device reaches the lower limit.

pump on the leveler side. The leveler equipment is used at a low
rate, but the moving bolster clamps are in constant operation.
Therefore, the member installed a hydraulic holding device called
an accumulator on the side of the moving bolster clamp, which isalways in operation, so that the hydraulic pump can be operated
intermittently. After that, the hydraulic pump, which used to run
continuously for 8 hours, could be stopped for 7 hours due tointermittent operation. As a result, we were able to reduce
12,688kwh of electric power (4.8t-CO₂ converted to CO₂) annually.

プレス機のMBクランパー系統にアキュムレータを取り付け、油圧ポンプ
を間欠運転することで8時間稼働→1時間稼働へ改善

Haga Technical Center（Haga Town, Haga-gun, Tochigi）

Environmentally Friendly & Energy Saving
At Haga Technical Center, each department work together togenerate hydraulic pressure all the time. By changing to an electric

develop ecofriendly products and technologies.

shaker that consumes power only when it is in operation, monthly

In the design process, we aim to reduce the weight of theaverage power consumption has been reduced to approximately

components while utilizing our proprietary optimization (analysis)

518kwh, 1/10 of thetools that secure rigidity, strength, durability. Compared to theconventional level.

current global model RR_SUBFRAME, which weighs 14.25kg, thenext proposed model achieved ▲1.31kg. This is expected to
improve fuel efficiency and reduce CO₂ emissions.
Also in product evaluation process, we devised the equipment.
Until now, the hydraulic shakers consumed about 5,000kwh ofelectric energy on average per month to keep running the motor to
43

F-TECH CSR REPORT 2022

The Electric Shaker

Top Message

What is the F-tech Group?

GovernanceSocialEnvironment

Global Initiatives

FUKUDA ENGINEERING CO., LTD. (FEG / Kazo City, Saitama)

The Risk Hands-on Training for All Employees
All employees participated in the training to archive zero industrial
accidents in December, 2021.

Sling" and make their safety mind to recognize.
From now on, it isThis training is held at Daiwa Steel Tube Industries Co., Ltd. ingoing to be included

Tochigi Prefecture and let them cultivate their danger awarenessto the new employee

and form a safe workplace by the simulated experiences on

training, and plan all

accidents in factories. The contents includes the dangers that canemployees to takeoccur in FEG, such as "Pinching Body in A Rotating Object", "Backthis course once every

Pain Caused by Carrying Heavy Objects" and "Catching Finger in A

three years.

Kyushu F-tech Co., Ltd.
（QFT/Yamaga City, Kumamoto）

Registered Kumamoto Prefecture SDGs
Kyushu F-tech applied for Kumamoto Prefecture SDGs

with the prefectural governor on 29th October. As the result,registration system. The registration needs the application

they got the right to use the exclusive sticker and their(Management policy for achieving SDGs, initiatives andcorporate advertisements was put on the web site of theindicators in the fields ofprefecture. It promotes their business opportunities withESG) and the questionnaires

companies outside the prefecture. In Kyushu F-tech, allof initiatives to achieve theemployees are cultivated their SDGs awareness with name tags

50 SDGs, and includes thewritten "My SDGs is-" means their own activities based on the 17

examination. On 1st

goals and 169 targets of theSeptember 2021, theSDGs. We have also realized

registered companies were

one of our assignments

listed on Kumamoto

automatic pedal assembly that

Nichinichi Newspaper andenables labor saving.

invited to the simple
ceremony to care COVID-19

Retera Inc.（Chichibu, Saitama）

Environmental SDGs & Carbon Neutral
The business plan of Retera for this fiscal year sets "Internal

The environmental activities in Retera have 12 points in

Penetration of SDGs Activities" as the goal. The employee was hascommon with the 17 interlinked global goals of SDGs. The points

an in-house training and the domestic 3 factories strive forcontain "Carbon Neutral" that is demanded by the customers.

achievement each assignment.

Through energy-saving project, we conduct energy-saving activities

Saitama Prefecture has set up the system to register companies

every year and strive to reduce CO₂ emissions.

and organizations as "Saitama Prefecture SDGs Partner"that promote the SDGs activity in cooperation with theprefecture to achieve "Saitama SDGs." we wererecommended this registration by the prefecture since
there are many similarities with RTY's environmental
activities. Therefore, we set 3 aims (①[Environment]
Reduction of CO₂ Emissions ②[Society] Promotion of
the Foreign Technical Intern Training Program ③[Economy] Compliance with the Act on Stabilization of
Employment of Elderly People) and registered as apartner on 31st July, 2021.
F-TECH CSR REPORT 2022

44

North America

Global Initiatives

F&P America Mfg., Inc.（FPA / Ohio, USA）

Awarding of Scholarship
In 2013, FPA founded the scholarship programs “F&P America

This year, 2 students from Troy High School and 1 student from TroyEngineering Scholarship” and “F&P America Business Scholarship”

Christian High School were awarded the scholarships.

for high school students in Troy, Ohio. This programs which goals
are promoting of growth in regional commerce, manufacturing andhuman resource development are for high school students in TroyHigh School or Troy Christian High School. There are 4 conditions
for entry, and the winners will be decided by the committee. Every

Anna Boezi(Troy HS)

year since 2013, 2-4 local students have earned the scholarships.

Ryen Marsh(Troy HS)

Lucas Day
(Troy Christian HS)

F&P Georgia, A division of F&P America Mfg.,Inc（FPG / Georgia, USA）

Control the Infection of COVID-19 ＆ In-house PCR Tests
In the middle of 2020, when the United States is in the first

In the United States, vaccination rates have stagnated, andpandemic of COVID-19, free PCR test were carried out by regional

wearing masks and social distancing are not implemented compared

medical institutions, and many employees left their workplaces

with Japan. In such a situation,

once for tests. Therefore, FPG set up for employees a PCR inspection

promoting the health maintenancearea in the office to prevent infection. It is a system in which aof employees is extremely importantsample is collected in-house, brought to it the laboratory, and thefor companies to continue theirresult is available 24 hours later. Even now, employees who arecorporate activities. The vaccination

unwell or concerned about their infection can be tested

can also be carried out in-house byimmediately.

collecting applicants.

The Scene of Vaccination

F TECH R&D NORTH AMERICA INC（FRDNA / Ohio, USA）

ISO17025:2017 Certification for Subframe & Control Arm TestingIn addition to ISO 9001:2015, as well as IATF 16949:2016 remotesupport certification, FRDNA has actively been working toward ISO
17025:2017 certification since FY 2020 that our test quality satisfies
the industry standard. We were audited in August 2021 andreceived ISO 17025:2017 certification for cyclic durability and static

equipment as an outsourced testing service and the scope of our

testing using hydraulic actuators and multi-axis durability testing

business opportunities has therefore expanded. We will continue tousing MTS 329 to validate subframes and control arms.

maintain this certification and extend the range of our business

As an officially recognized test lab, we are able to operate test

dealings with new OEMs in the future.

F&P Mfg., Inc.（F&P / Ontario, Canada）

Reduction of Maintenance Cost & Diesel Oil
F&P works on

45

expected to save $15,000 annually.

reducing theAlso, F&P increased the bin quantities of stamped products toamount of

reduce the number of truck shipments. During this period, 12 trucks

sludge fromto FPMX, 16 trucks to FPA, 20 trucks to DM and 24,862 liters of diesel

the cleaner

were saved.

procession by

In addition, F&P continues to install more LED lighting tomedia filtration

reduce energy consumption. Many environmental suggestions

system. The filter can remove particulate down to 5 micron. It

were made by employees, and the environmental department

reduces the frequency of tank cleaning by several weeks and isplans setting up a biodiversity committee.

F-TECH CSR REPORT 2022

Top Message

What is the F-tech Group?

GovernanceSocialEnvironment

Global Initiatives

DYNA-MIG, A Division of F&P Mfg., Inc.（DM /Ontario, Canada）

Additional Food Drive Activity
For more than 15 years, DM has supported the activities of thewas surpassed to a total of 974 pounds for donation. Throughout

charity organization "STRATFORD House of Blessing". The

2021, 8,967 people used the House of Blessing food bank.

organization has been rendering community service in Stratford,
Ontario, where DM is located, and surrounding area for nearly 40
years. Among the many programs, DM participates in food driving*¹
and fundraising activities.
However, the service demands has doubled from the previous
year, as people who have lost their jobs and homes due to theimpact of COVID-19 surged. At the peak of the epidemic, theorganization appealed to the entire community for their more
support and then the employees in Sales and New Model Groupran a fall food drive. 44 associates participated; some associates
multiple times. The goal was to collect 250 pounds food. The goal

*1 One of activities that collects food items leave at home and donate them to food banks
and charities.
*2 Activities and organizations that receive food donation that has no quality problems
but cannot be sold due to damage to the package and distribute it.

F&P MFG DE MEXICO S.A. DE CV（FPMX / Guanajuato, Mexico）

Increase Environmental Awareness by Families
In 2021, the restrictions ofas an opportunity to learn how to grow plants.

corporate activities and daily life

The bottle cap campaign which started in August 2020 ishave been added due to theappealed to employees and suppliers. In May 2021, 175kg of caps

pandemic of COVID-19. We

were collected and sent to the recycling facility. The reward will be

were able to carry out theused to support the treatment of children suffering from cancer,

annual tree planting activities inand the cap will be used as a raw material for new plastic products.

the factory by 30 employee. In addition, we wondered if there wasanything else we could do on the restriction, weplanned an environment-themed coloring bookfor the employees' children aged 4 to 10. This
event was aimed at understanding importanceof saving natural resources and separating
garbage to type, and participated in by 35
children. Also, we distributed home planting kits

F.E.G. DE QUERETARO S.A. DE C.V（FEGQ / Queretaro, Mexico）

Reservoir Cleaning Activity
In March 2022, FEGQ cleaned up a reservoir in the Santa Catarina

employees to participate in this activities.

district for the first time as a part of its environmental conservationand community contribution activities. 9 employees participated in
the activity and collected 80 kg of disposal wasted contains general
garbage, plastic, and glass and made them to consider environmentalload by human. 9 employees participated in the activity and collected
80 kg of general waste, plastic and glass-containing waste, which
made them consider about the environmental load caused byhumans. We had such an experience as the first time, and reaffirmed
an importance of using natural resources appropriately and reducing
the environmental impact. We plan to improve the system for more
F-TECH CSR REPORT 2022

46

ChinaGlobal Initiatives

F•TECH ZHONGSHAN INC.(FTZ /Guangdong, China)

Encourages Safety Initiatives
At FTZ, we encouraged safety initiatives and aiming to create a safe
workplace with no accidents. The specific initiatives include: (1)Periodic patrol by the Safety and Health Committee once a month(2) Factory patrol by the division in charge once a month (3)Equipment inspection for safety and reliability (4) Prevention
training & In-house safety education (5) Information provision of
accidents in the group companies. Recently, we revised our inhouse safety education and conducted a training for danger
prediction based on Japan's efforts. We have created educationalcase studies based on actual accidents that have occurred in thepast for employee to understand easier. The annual average
accidents from 2017 to 2020 counts of 5.25 decreases to 1 as thelowest since our founding.

F. TECH WUHAN INC.(FTW / Hubei, China)

Standardization of Prevention of Epidemic & Praised B for Improvement of “Heavily Polluted Weather”
In China, the pandemic of the Omicron variant of COVID-19 has led

start from rank D and be upgraded up to each improvement

to a lockdown in Shanghai, and many companies were made tocontent. If the rating is C or D, FTW will be required limit of operated

suspend operations. In Wuhan City, free PCR test sites were set up,

vehicles and suspension of coating procession. The 6,523

and all citizens were demanded to take it once every 48 hours. In

companies in Hubei Province were examined by experts, and 3such circumstances, FTW made a request to an inspection company

were ranked A, 13 were B, and 1 was the performance-leading

while contacting the government's quarantine department, and set

company. FTW was rated rank B. As a result, we have been able toup a PCR test area in the office under the administrative

continue production delivery without penalty measures.

instructions. We were able to provide convenient testing system,
identify risks of infection on the working place, and promote thesafety of employees.
Also in FY2021, the Hubei Provincial Department of Ecology andEnvironment conducted rating evaluation for leading companies asmeasures to improve "heavy polluted weather." The companies

F.tech R&D(Guangzhou) Inc. (FRDCH / Guangdong, China)

Reorganaization of the Safety & Health Risk Committee
In August 2021, FRDCH relocated the office along withmanagement companies. In order to be able to deal with problems

organizational changes. We updated the Safety and Health Risk

at the new site in the same way as before, we have developed theCommittee organization to ensure workplace safety at the new

system that allows us to promptly report problems to relevant

location. The
committee's
activities include
daily management,
safety training, andparticipation in fire
drills sponsored by
office building
47

F-TECH CSR REPORT 2022

parties and take immediate measures.

Top Message

What is the F-tech Group?

GovernanceSocialEnvironment

Global Initiatives

Asia

Philippines / Thailand / Indonesia
F-TECH PHILIPPINES MFG., INC (FPMI/Laguna, Philippines)

Social Contribution (Blood Donation) × Welfare Support
In December 2021, blood donation activity, which had beentransfusion,

suspended due to the influence of COVID-19, was held for the first

30% of thetime since the spread of the infection. The Safety and Healthblood donatedCommittee set up a blood donation venue in the company's

through theconference room on the theme of "New Normal Blood Donationcompany will

Activity" and was able to collect 44 blood bags with thebe provided free of charge. From January to June 2022, 19 bags ofcooperation of the Medical Calamba Medical Center.

blood were transfused to 11 employees as a welfare program

In FPMI, if an employee or their family needs a blood

support project.

F.tech R & D Philippines Inc. (FRDP/Laguna, Philippines)

Infection Care Support for Employees & Fundraising for Typhoon Damage
COVID-19, which is raging all over the world, has infected toparticular suffered serious damage, including blackout for more

employees in FRDP and their families. In such a situation, DP

than a month, transportation disruptions, and food and water

delivered a "care pack" containing food items to 19 employees

shortages. FRDP raised 11,600 PHP to purchase mineral water toinfected with the virus. As the world explores how to tackle

distribute to families affected by the typhoon.

infectious diseases, FRDP also considered about the necessary
support for employees.
Employees also raised funds to support local communities. In
December 2021, super typhoon Odette (Rai) hit the Visayas in thecentral of Philippines, causing devastating damage. Cebu City in

F-TECH MFG. (THAILAND) LTD (FMTL/Ayutthaya, Thailand)

Support of Manufacturing Cardboard Beds for Temporary Medical Facilities
Due to the epidemic of COVID-19, the number of positive patients

In addition, FMTL provided uniforms, shoes, and stationary toin Thailand has increased rapidly, and the shortage of bed in

10 1st graders (5 boys and 5 girls) in Mittrapap School, and continue

hospital was occured. FMTL participated in the activity "Unity Fight

offering the previous calendars and used lottery tickets to the

Against Covid Project, Turning Paper into SCGP Field Beds"

organizations for visually impaired and people with intellectual

sponsored by a shopping mall and a material company indisabilities. The offers

Ayutthaya to collect and donate used paper. The collected usedwill be used for theirpaper will be transformed into cardboard beds and provided to theBraille textbooks andnation-wide temporary medical facilities for COVID-19.

craft arts.

PT. F.TECH INDONESIA(FTI/Karawang, Indonesia)

Acquired IATF16949 Standard Certification & "The Best Vendor Performance Award"
FIT has been aiming to obtain IATF 16949 standard certification.

center of SUZUKI INDOMOBIL MOTOR for our excellent

However, we were not able to proceed it as we had planned due toperformance in terms of delivery and quality. The awarded period isthe action restrictions by COVID-19. In 2021,

FY 2019, but the commendation was delayed due to the epidemic

we resumed the activities, and then we wereof the new coronavirus in Indonesia. Although the number of newable to acquire the standard certification in

infections is still high, there is an

March 2022 after the examination inindication to relax action restrictions.

December.

At the same time, we would like to

In addition, we were awarded "The Best
Vendor Performance Award" by the parts

gradually resume our social
contribution activities.
F-TECH CSR REPORT 2022

48

Issuer :F-tech Inc.
19, Showanuma, Shobucho, Kuki, Saitama 346-0194
JAPANInquiries :F-tech Inc. General Affairs Department
TEL. 0480-85-5211 FAX. 0480-87-1290
E-mail : webmaster@ftech.co.jp
Issued Oct. 2022
Next Issue : Scheduled for release in October, 2023