ARISAWA INTEGRATED REPORT

About Arisawa

Value Creation

Management Policy

Sustainability

Company Overview

Sustainability（E）
Environmental Management

Environmental Targets, Results and Assessment for FY2022
We have established the environmental management system in accordance with ISO 14001, and we identify and evaluate importantenvironmental risks and opportunities through its operation and determine how to address environmental issues.

Environmental Policy
Our corporate group will carry out the following measures in order to reduce environmental loads and promote environmental conservationfor our overall business activities from development and design to manufacturing of electronic materials, industrial application structuralNo.

Environmental

Target Values

1

Develop the products and technologies contributing to
reducing environmental loads

Develop 6 items or more during the period

Developed 6 items

Achieved

1) Survey environmental hazardous materials of existingpurchased speciﬁcations

Obtain data and guarantees as required

230

Achieved

2) Grasp the disclosure of CSR procurement policy andthe measures of suppliers

Survey 30% of sellers

31％

Achieved

Neither cause a new environmental pollution or healthdamage, nor commit the material violation of laws andregulations to sustain biodiversity

Commit no material violation of laws
and regulations

0

Achieved

Save energy at Minami-honcho Factory

Reduced by 18% comparedto the past resultsmaterials, electrical insulation materials and display materials, and to contribute to solving the social and environmental issues and realize
the sustainable growth.

❶ To strive towards the prevention of environmental pollution by accurately determining the environmental impact of our business activities, products
and services.
❷ To comply with environmental laws, regulations, agreements and other requirements to which we have agreed.
❸ To establish and carry out "Environmental Goals" and review them periodically in promoting environmental activities.
❹ To develop the products and technologies contributing to reducing environmental loads.
❺ To strengthen the management of hazardous chemical substances which might have an impact on the environment.
❻ To strengthen the management of air, water, and soil pollution and strive to maintain biodiversity.
❼ To work toward resource saving, energy saving, industrial wastes reduction and recycling promotion.
❽ To contribute to reducing greenhouse gas and creating a recycle-based society by introducing renewable energy and recyclable resources.
❾ To raise awareness of all employees through environmental education and enlighten them so that they will take responsible actions for a sustainable society.
❿ To continually improve the environmental management system by performing periodic internal environmental audits and management reviews.

Promotion Structure ofEnvironmental Protection

Board of Directors

Environmental Protection and Management Committee
Chairperson

Management
Committee

Environmental protection activities are promoted

Vicechairperson

Operating Ofﬁcer supervising Quality Assurance Dept.

Environmental

Protection

andSecretariat

Board of Operating
Ofﬁcers

hara, and Nakadahara-nishi) in Joetsu-shi. The

Committee
memberManagement

Committee uses the PDCA cycle and is engaged in

Cooperate

the protection activities in cooperation with the
ESG Committee.

ESG Committee

31) Save energy (reduce electricity and city gas)

42) Achieve zero emissions

Quality Assurance Dept.

Manufacturing Dept.
→Executive ofﬁcer in charge, General manager,
Group leader
Technology Dept., Manufacturing Engineering Dept.
Quality Assurance Dept. Internal Auditing Ofﬁce,
Arisawa Sogyo, Arisawa Fiber Glass→ Executive ofﬁcer in charge, Group leader

5

6Material Balance
Our group strives to reduce environmental loads by understanding the balance between energy and resource inputs in business activities
and CO2 and waste emissions generated as a result.

INPUT

FY2021OUTPUTFY2022

Energy Inputs
Fuel8,663 kL

7,332 kLSum

32,564 ton

26,681 ton

City gas

7,456 千m3N

6,307 千m3N

Fuel

16,747 ton

14,165 ton

5.0 ton

4.0 tonElectricity

15,817 ton

12,516 ton

9,544 kL

8,100 kL

38,117 千kWh

32,327 千kWh

(crude oil equivalent)Electricity

Organic solvent air emissions

Purchased items

Substances subject to the PRTR system

110 ton

135 tonIndustrial emissions
10,262 ton

9,009 tonSum

1,658 ton

1,643 ton

9,264 ton

8,078 ton

Recycled (reused)

1,605 ton

1,596 tonIncl. organic solvent

580 ton

608 tonLandﬁll disposal

53 ton47 tonSecondary materials

998 ton

931 ton

Chloroﬂuorocarbon emissions

Sum
Raw materials

Water inputs

33

FY2022

Sum (crude oil equivalent)
LPG

Electricity

FY2021CO2 emissions

Emissions by a chloroﬂuorocarbon

Total inputs

380.5 千m3

307.9 千m3

Surface water

153.6 千m3

136.9 千m3

Underground water

226.9 千m

171.0 千m

3

3

- ton

1.12 ton

Period covered: FY2022 (April 2022 to March 2023)
Business sites: Joetsu Head Ofﬁce and Minami-honcho Factory(including Arisawa Fiber Glass Co., Ltd. and Arisawa Sogyo Co., Ltd. within the premises)
Nakadahara Factory (including Arisawa Sogyo Co., Ltd. within the premises)
Nakadahara Nishi Factory (including Arisawa Sogyo Co., Ltd. within the premises)

Reduce energy amount kL by 1% compared to thepast results, or reduce energy amount kl/processing
output by 1% compared to the previous year

Save energy at Nakadahara Factory and
Nakadahara Nishi Factory

Reduce energy amount kL by 1% compared to thepast results, or reduce energy amount kl/processing
output by 1% compared to the previous year

nvironmental Manager→Selected from pollution prevention supervisors

as a whole by the factories and afﬁliates on thepremises at three sites (Minami-honcho, Nakada-

2

7

Maintain a recycling rate of 90% or higher

Results

Reduced by 1.1% comparedto the previous year
Reduced by 18% comparedto the past results

Reduced by 3.6% comparedto the previous year

Evaluati

Achieved

Achieved(recycling rate = amount of recycling / amount ofindustrial waste disposal)

97.1％

Achieved

3) Reduce industrial waste

Reduce industrial waste by 2% comparedto FY2020

Reduced by 5.8%
compared to FY2020

Achieved

Reduce CO2 emissions(achieve carbon neutrality by FY2030)

Reduce CO2 emissions by 21% comparedto FY2020

Reduced by 37.3%
compared to FY2020

Achieved

1) Conduct a general education and training

Conduct once a year at each department

Conducted

Achieved

2) Conduct training for employees engaged in
speciﬁed work

Conduct once a year at a relevant department

Conducted

Achieved

3) Conduct training for hired and transferred employees

Conduct at hiring or transferring

Conduct as required

Achieved

1) Conduct volunteer activities

Conduct once a year or more

Conducted once

Achieved

2) Issue an environmental report

Publish on our website in OctoberIssued in October

Achieved

Environmental Compliance

Employee Education on Environment

We received two complaints about noise from neighborhood in

We conduct general education every year aimed at increasing

Both were due to the operating sound of air conditioner

with environmental laws and regulations related to our business

FY2022.

compressor units. We obtained the neighborhood s approval byimplementing measures, such as installing soundproof shielding

plates on the units, changing operating hours, and limiting theemployees

environmental awareness, including complianceactivities, sharing of information with stakeholders, and spreadof our environmental targets.

In addition, we have established the procedures fornumber of units in operation.

preparing for and responding to emergency, including theenvironmental issues through communication with parties

accidents, and conduct education and training every year at theWe will continue to promptly respond to complaints about

concerned.

prevention of environmental pollution due to disasters andfactories and research facilities at high environmental risks. No

incidents occurred that could have a major impact on asurrounding environment in FY2022.

Furthermore, we are implementing measures to expand

specialized knowledge, such as training ISO 14001 internal
auditors and educating employees engaged in speciﬁc tasks.

34

ARISAWA INTEGRATED REPORT

About Arisawa

Value Creation

Management Policy

Sustainability

Company Overview

Sustainability（E）
Responding to Climate Change

Strategy

We analyzed the effects as of 2030 by using two scenarios, the 4°
C scenario* and the 1.5°
C scenario*, targeting at ourwhole supply chain from purchase, development, production to sales of products and services. Upon scenario analysis,the ESG Committee identiﬁed signiﬁcant risks and opportunities related to climate change and assessed ﬁnancial impacts
that those would have.

*Source: The Ministry of the Environment Practical Guide for Scenario Analysis in line with TCFD Recommendations 3rd edition

We support the recommendations by the Task Force on Climate-related Financial Disclosures (TCFD). We have also participated in the TCFD

Consortium, a platform where supporting companies and ﬁnancial institutions discuss. We consistently improve our environmental protection

activities by promoting the reduction, etc. of electricity and gas consumption, hazardous chemical substance, and industrial waste inaccordance with the Environmental Policy, as the Environmental Protection and Management Committee deliberates on the activities.

ESG Policy

In all aspects of our business activities, Arisawa actively addresses a variety of issues

related to environment, society and governance and aims to achieve sustainable growth.

We established the ESG Committee in December 2021 in order

We have implemented various measures to improve energy use

At the committee, a director and senior managing operat-

ment of the measures, but also aim to achieve carbon neutrality

to take the lead in addressing climate change issues.

ing ofﬁcer serves as a chairperson, and operating ofﬁcers andgeneral managers of each division serve as members, promoting the organized activities.

The ESG Committee deliberates four times a year onof direct emissions (Scope1) and indirect emissions (Scope2)

by using renewable energy and purchasing carbon neutral gas
as well as promoting the development of low-carbon products.

transactions with business partners, in addition to enlightening
and promoting sustainability-conscious management.

Important matters to be deliberated and the status of theactivities, etc. are regularly reported by each committee to theBoard of Operating Ofﬁcers, the Management Committee andthe Board of Directors, and the Board of Directors makes theﬁnal decision.

Please refer to the ESG Promotion Structure on page 19

for a promotion system on ESG.

Factors

Assessment

Responses

・Increase in operating costs due to the implementation ofcarbon taxes【1.5℃】Large

Emissions trading

・Additional costs incurred for credit purchases, etc.

【1.5℃】Large

Response to GHG
emissions regulations

・Increase in costs for renewing equipment ﬁxtures with highefﬁciency・Regulations on the use of chloroﬂuorocarbon【1.5℃】Large

・Set targets for energy saving and CO₂ emissions reduction in thecompany-wide environmental targets
・Set targets for achieving carbon neutrality by 2030
・Save energy and purchase renewable energy
・Set targets for a recycling rate
・Reduce energy consumption by productivity improvement
・Consider renewing with energy-saving equipment in compliancewith regulations
・Promote capital expenditure by introducing ICP

Plastic regulations

・Increase in costs due to regulations on plastic packaging 【1.5℃】Medium
materials

・Reduce usage
・Consider replacements

Renewableenergy policy

・Increase in energy costs due to higher renewable energy
prices

【1.5℃】Large

・Set targets for energy saving and CO₂ emissions reduction in thecompany-wide environmental targets
・Promote investment in energy saving
・Reduce energy consumption by productivity improvement
・Set targets for achieving carbon neutrality by 2030

Change in raw
material costs

・Increase in procurement costs due to carbon taxes andother regulations
・Increase in raw material costs due to soaring crude oil andcopper prices【1.5℃】Large

・Reduce the usage of raw materials by improving yield・Select suppliers based on risk assessment

Change in customer
reputation

・Decrease in sales due to suspension in trading and market
share loss when environmental friendliness cannot be
addressed【1.5℃】Large

・Introduce our initiatives by externally delivering
Environmental Policy and issuing environmental reports
・Publicize initiatives for ESG, TCFD, and carbon neutrality

Change in investor
reputation

・Avoidance of investment and loan from ﬁnancial institutions
and investors when disclosing climate change-related
information is delayed【1.5℃】Large

・Issue integrated reports

Increased severity of
extreme weather events

・Increase in costs to deal with the suspension of operations 【1.5℃】Medium
and logistics functions【4℃】Large
・Delivery delay of procured materials
・Increase in procurement (transportation) costs

・Store inventory of four months worth of raw materials whose
replacements are not available in raw material procurement
・Require suppliers of BCP measures
・Dual vendor system
・Increase productive capacity with capital expenditure
・Renew aged buildings

Rise in averagetemperature

・Increase in energy costs with increase in the frequency of
the use of air-conditioners【1.5°C】Small【4°C】Medium・Set targets for energy saving and CO₂ emissions reduction in thecompany-wide environmental targets
・Promote investment in energy saving
・Paste heat-insulation sheets on windows directly exposed to
sunlight

Financial Impacts

Assessment

Responses

theRisk Management
We recognize that climate change-related risks are importantmanagement issues. Therefore, the ESG Committee identiﬁes
and assesses the climate change-related risks, and reports to

the Board of Operating Ofﬁcers, the Management Committee

and the Board of Directors, thereby deﬁning key issues. We
improve our risk management system by managing these risks.

Opportunities
Transition/ PhysicalTransition

decarbonized society, respecting for human rights, consider-ing for working environment, and having fair and appropriate

Financial Impacts

Carbon price(carbon taxes)

in FY2030 (compared to CO₂ emissions in FY2020)* in terms

Impact of transition to a decarbonized society

themes, such as responding to climate change, realizing a

efﬁciency. From now on, we will not only expand the deploy-

Physical

Metrics and Goals

Impact of natural disasters

Governance (Promotion Structure)

Transition

issue.

Impact of transition to a decarbonized society

Under the philosophy that the solution of environmental issues leads to value creation for society as well as the reduction of businessrisks, we publicized Carbon Neutral Initiatives on our website in June 2021 because we especially recognize climate change as a pressing

Risks
Transition/ PhysicalAs for assessing the climate change-related risks, upon

identifying climate change factors in businesses, we assume

Factors
Emissions trading

・Additional revenue when emission allowances are excess【1.5°C】Large・Set targets for energy saving and CO₂ emissions reduction in thecompany-wide environmental targets
・Set targets for achieving carbon neutrality by 2030
・Save energy and purchase renewable energy
・Set targets for a recycling rate
・Reduce energy consumption by productivity improvement
・Consider renewing with energy-saving equipment in compliancewith regulations
・Promote capital expenditure by introducing ICP

Progress of low-carbon
technologies

・Increase in sales of materials for electronic parts due to theincreased demand for EV
・Increase in sales of materials for fuel cell due to theincreased demand for fuel-cell vehicles
・Increase in sales of materials for hydrogen generation
devices due to the increased demand for hydrogen energy
・Increase in sales of carbon cloth prepregs and honeycomb
materials due to the increased demand for the weight
reduction of vehicles and aircrafts【1.5°
C】Large・Develop and promote sales of high heat-resistant FPC materials
for EV and high heat-dissipation/insulation adhesive sheets

Change in customer
reputation

・Increase in market share by receiving a high reputation inmarkets when environmental friendliness can be addressed【1.5°C】Large・Introduce our initiatives by externally delivering the Environmental Policy and issuing environmental reports
・Publicize initiatives for ESG, TCFD, and carbon neutrality

Change in investor
reputation

・Easiness to obtain investment and loan from ﬁnancial
institutions and investors when climate change-related
information is disclosed more than other companies【1.5°C】Large・Issue integrated reports

Increased severity of
extreme weather events

・Increase in sales of seawater desalination treatment devices 【1.5°C】Mediumdue to the impact of water stress【4°C】Large・Increase in demand for and sales of electronic devices due tolower human mobility

the changes of future regulations, and societal, technologicaland climate conditions for each 1.5°
C and 4°
C scenarios.

Please refer to the materiality and KGI on page 20 for the
Physical

Impact ofnaturaldisasters

issues that we address and our vision for the future.

・Promote sales in the electronic materials ﬁeld and of ﬁlament
winding products

Assessment (small, medium, large): analyzing quantitatively and qualitatively, and assessing relative impacts.

35

36

ARISAWA INTEGRATED REPORT

About Arisawa

Value Creation

Management Policy

Sustainability

Company Overview

Sustainability（E）
Promotion of Circular Economy

Activity Results
Regarding the reduction of industrial waste emissions, wepipes and PVC cutting waste in FY2022. In addition, we areinvestigate whether any new materials are available for recycling,

waste liquid, separation of paper tubes with mouthpieces intothat may be subject to reduction. Regarding zero emissions, we

Emission Policy
In order to realize a sustainable society, it is required to make an early transition to an economic system with less environmental impact; itis required to break away from an economic system (linear economy) that uses a large amount of natural resources and fossil fuels, produc-

As a result, we are now able to recycle glass waste, PVC

conduct monthly waste patrols in our factories to identify items

and work toward a goal of achieving a recycling rate of 90% or
higher for a single year.

considering recycling by the distilled separation of cleaning
steel and paper tubes, and compaction of plastic platelets.

es and consumes a large quantity of industrial products, and disposes of these products in mass quantities and to make a shift to a circular
economic system by treating as resources industrial products which are considered waste in the conventional economic system andcirculate those by recycling (Recycle), reusing (Reuse) and reducing (Reduce).

We have been working to reduce and reuse emissions and waste generated by our business activities through the activities. To

accelerate activities for reducing and reusing, we established the Emission Subcommittee within the Environmental Protection and Management Committee in FY2022.

Industrial Waste and Recycling Rate
Industrial waste emissions were 1,643 tons. The breakdown of theLong Term Targets for the Emission Subcommittee[1] Reduce industrial waste emissions by 30% compared to FY2020 by 2050.
[2] Achieve the zero emissions of industrial waste related to development and manufacturing by 2050.

emissions is 50% for waste plastic, 19% for waste oil, 11% for sludge,

Waste acid 4％
Other
9％

Wood chips 7％

7% for wood chips, 4% for waste acid, and 9% for other.

Waste plastic emissions were reduced by 0.4% from theprevious year.

In order to achieve the zero emissions of industrial waste related

Sludge 11％

to development and manufacturing by 2050, we are continuing topromote active recycling (thermal recycling or material recycling),
and the recycling rate in FY2022 was 97.1%.

Waste plastics
50％

Waste oil19％

Toward these targets, we will continue to reduce waste and recycle industrial waste that is not currently recycled.

Types and Ratio of Industrial Waste

Outsourcing Disposal ofHazardous Industrial Waste
We outsource the disposal of industrial waste to disposal operators. In compliance with laws and regulations, such as the Act on
Waste Management and Public Cleansing, we properly issue anindustrial waste control documentation (manifest) and check theGreen Purchasing
The green purchasing ratio was 87.4% in value terms.

Trends in Industrial Waste Emissions and Recycling Rates
Qty（tons）

（%）

4,000

100
80

3,000

process up to the ﬁnal disposal destinations. We also conduct
on-site inspections (including document examinations) of
disposal operators as needed to conﬁrm that our emissions are

60
2,000
40

disposed of properly.

1,000

0

20

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Industrial Waste Emissions

37

0

Recycling Rates

38

ARISAWA INTEGRATED REPORT

About Arisawa

Value Creation

Management Policy

Sustainability

Company Overview

Sustainability（S）
Human Resource Management

Fair Evaluation and Treatment
We adhere to meritocracy regardless of age, gender, or career in

Human Capital Management Policy

system to encourage the growth of employees through multidiobjectives (MBO).

human resources.

group. With growing attention to diversity, collaboration, andtee within the ESG Committee.

health management, we will continue to improve a working

In FY2023, we established the Human Capital SubcommitThe Human Capital Subcommittee will work on a wide range

environment and update human resource development plans toof activities aimed at building an organization suitable for execut-

and are eager to work in. To further enhance our corporate value,leaders, creating a better environment for employees in positions,create workplaces that we can be proud of and feel comfortable
we are focusing on attracting and developing diverse humanresources, including creative and ﬂexible leaders and digital

Initiatives on Recruitment andEnsuring Diversity
Our basic policy in recruitment is to ensure diversity and achieveequal opportunity, and we attract a diverse range of new gradu-

ates for research and development positions, regardless ofregion and school.

The ﬁrst female director was appointed in June 2021, andtwo of the directors are female as of June 2023 through theimplementation of various development plans and efforts topromote the active participation of women. In addition, the ﬁrst

ing business strategies, such as improving the attractiveness of
examining a dynamic human resource portfolio, and relearning
skills that are lacking in the organization.

（％）
50

20.0
12.5

FY2022(Results)

We will furthermore aim to increase the ratio of women inexperience in specialized ﬁelds.

75

butions to improving the company's performance), and a reward

68.8

70.5

childcare leave and the percentage of annual paid leave taken are

FY2024(Plan)

70.0

FY2024(Plan)

With regard to the human resource development, we aim towith a new employee development plan. Career consultation by a

improve organizational power by striving to provide a wide range

addition, we are working to develop and promote human resourc-of opportunities for skill development, including improvement ofbasic skills with position-based trainings, external trainings, andself-development with e-learning.

New employees receive one-on-one guidance from anindividually assigned trainer and learn their tasks in accordanceon the rise. We also support employee asset building throughemployee shareholding associations and selective deﬁned contribution plans. It is a company's obligation to provide a comfortablecareer consultant or industrial counselor is also available. In
es and future leadership candidates who can think independently

and practice CIC, which is at the core of our management policy,

through communication, such as direct dialogue between
management and young employees in executive ofﬁcer courses.

work environment for its employees, and this contributes to highand every employee, foster a free and open-minded corporate

employee retention rates by making it easier to maintain work-life

culture that respects diversity, and maintain a cheerful andbalance and improving operational efﬁciency.

rewarding work environment.

Ratio of male employees
taking childcare leave

Human Resource Development
enhance job satisfaction for each and every employee andworking hours. As a result, the rate of male employees taking

activities, we will respect the personality and individuality of each（％）

Percentage of annual
paid leave taken
（％）

100

50

FY2022(Results)

FY2024(Plan)As an example, depending on a type of work, we haverights and is free from discrimination. While giving ﬁrst priority to25
FY2021(Results)

FY2022(Results)

on ensuring a healthy work environment that respects human

together and thinking about things from each perspective, which

0

FY2021(Results)

85.0

adopted systems, such as ﬂextime, teleworking, and staggered75

an important management issue and will continue to promote it.

80.5

coexistence and co-prosperity with the company and protect

50

will lead to an increased corporate value. We regard diversity as

0

employees for long service, excellent work efﬁciency, and contri-

We believe that new ideas and solutions are created bypeople with different backgrounds and experiences getting

39

performance evaluations, awards on Culture Day (awards toTrends in mid-career inmanagerial positions

（％）
100

77.6

25

management positions, the allocation of bonuses based on

ensuring human safety and health in all processes of our business

10.6

FY2021(Results)

management positions to 20% by the end of FY2024. Additional-

mid-career hiring of professionals with advanced knowledge and50

ees include an employee stock ownership plan for employees in

As we value each employee's independence and creativity, andinternal promotion.

business challenges speedily, we also place emphasis on thejob responsibilities. Examples of the incentive system for employ-increases based on evaluations and an incentive system based on

workplace safety and physical and mental health, we are working

10
0

75

Promotion of Work-life Balance

Trends in female employees
in managerial positions

30
20

We also aim to build a strong organization through salarysystem for proposals that contribute to improved productivity.

40

female operating ofﬁcer was appointed in June 2022 throughly, in order to respond to environmental changes and take on new

（％）
100

mensional evaluation and feedback based on the management by

Human resources are the source of value creation and the driving

force to achieve sustainable growth and development for our

Ratio of gender wage gaps
between men and women

recruiting, promoting and appointing, and have introduced a

（％）

100
60.0
42.1

75

25

25

0

0

FY2021(Results)

FY2022(Results)

10

57.2

65.6

75.0

50

29.4

FY2024(Plan)

Turnover ratio(non-consolidated)

5

FY2021(Results)

FY2022(Results)

FY2024(Plan)

0

1.2

1.2

1.2

FY2020(Results)

FY2021(Results)

FY2022(Results)

Corporate Culture
We do not use titles that imply hierarchical relationships, such as
jyoushi (boss) or buka (subordinate), and encourage employees

to address each other by attaching the Japanese honoriﬁc san tonames. We believe that this will protect the health of our employ-ees, create a comfortable workplace, and eventually improve
productivity and encourage innovation, which result in increasing
corporate value.

40

ARISAWA INTEGRATED REPORT

About Arisawa

Value Creation

Management Policy

Sustainability

Company Overview

Sustainability（S）
Occupational Health and Safety

Supply Chain Management

Under the Safety Declaration and Our Action Guideline, all of our employees and the employees of our subcontractors

In 2022, we established the Procurement Subcommittee and announced the CSR Procurement Policy with the aim of procur-

who work with us participate in promoting safety activities with the aim of achieving zero accidents.

ing environmentally friendly products and services and building a supply chain free of social issues related to human rights,
health, ethics and so forth.

Safety Declaration
1. We will aim to be a good company that places
safety ﬁrst, live up to the trust of our customers, and fulﬁll social responsibilities.
2.We will build a safe and comfortable workplacethrough a zero accident campaign in which all
employees participate, always keeping safety
awareness in mind.
3. We will not do or let anyone do risky behavior.
We will build a disciplined workplace that
follows standard work and rules.

We will actively promote CSR activities in order to fulﬁll social responsibilities through business activities. Through those

Priority Goals of Occupational
Health and Safety for FY2022

Our Action Guideline

activities, we will work to address a variety of issues and aim at sustainable growth in continuing our business activities.

1.Accidents are caused by habituation andcarelessness. Always go back to basics and do
standard work.
2. Give a warning immediately if you see
something unsafe. The words that are given
and the feelings that are wished for are zeroaccidents.
3.Safety greetings and pointing and calling are
carried out by all.

We give the highest priority to safety,
and fulﬁll our own roles andresponsibilities for zero accidents.

CSR Procurement Policy
1. Establishing a Company Structure to Facilitate CSR(Corporate Social Responsibility)
・Develop management policies and action guidelines on CSR.
・Establish an organizational structure which promotes CSR.

2. Fair Trade

At each workplace, group leaders carry out
decisions as a workplace safety and healthpromoter. A director and general manager acts
as a general occupational health and safety
manager, who reports on important matters toand is monitored and supervised by the Board of
Directors.
In addition, under the management policyof labor-management cooperation, we holdregular meetings with the union on occupational
health and safety and outsourcing safety
meetings to raise the safety awareness of all
employees.

Board of Directors

Occupational Health and Safety Committee

Management
Committee

Chairperson(General Occupational
Health and Safety Manager)

Board of Operating
Ofﬁcers

Secretariat(General Affairs Dept.)

Staff
Safety Manager
Health Manager

Committee Memberof Management

Committee Memberof Labor

Working Environment
Measurement Expert

Industrial Doctor

Labor Union Leader
Secretary-general
Executive Committee Member

Committee Memberof Management

Manager
Some Group Leaders
Workplace Occupational
Health and Safety Manager

To achieve the goal of no accidents, we continue to engage in daily safety
activities, such as safety patrols, safety education and training, and occupational
health and safety risk assessments as well as report on near-miss (hiyari-hatto)
incidents at each workplace, hazard prediction training, 4S activities (4S stands for
Seiri, Seiton, Seisou, and Seiketsu, or Sorting, Setting-in-Order, Shining, andStandardizing), and rotational safety announcements.
In order to prevent accidents and disasters, it is important to ensure the safetyof manufacturing processes and the soundness of facilities and to continue stable
operations. At each factory, we make plans to inspect and renew facilities, prioritize
them according to risk and importance, and carry out inspections, repairs, andrenewals in sequence. In addition, we are proceeding with risk assessments when
installing facilities as a measure to prevent similar accidents from happening again,
besides conﬁrming the effectiveness of countermeasures using past accident cases.
As a response to emergencies, we have in place a disaster prevention system
for self-protection at each business facility and conduct various disaster prevention
drills in accordance with the annual plan in case an accident occurs. Speciﬁcally, we
conduct company-wide ﬁre drills, joint ﬁre drills with a ﬁre department, and company-wide earthquake drills (BCP activation drills).
We also maintain close contact with our domestic consolidated subsidiaries toshare information and apply safety and other measures to them.

・Prohibit human rights abuses (harassment, discrimination, abuse, andcorporal punishment) and respect human rights.
・Prohibit forced labor and overwork, and appropriately manage working
hours and days off.
・Have no relationships with anti-social forces (individuals and groups)
and do not engage in transactions with such forces.
・Identify and comply with laws, regulations and rules applicable tobusiness activities.

4. Ensuring Quality and Safety
・Establish and implement a quality management system, and promote
quality assurance activities.
・Comply with laws and ensure sufﬁcient product safety regarding
internally designed products.
・Identify risks, such as potential accidents, earthquakes, ﬁres and ﬂood
damage, and establish a safe working environment.

Observer (some subsidiary companies)

Workplace Safety and Health Promoter

Occupational Health and Safety Initiatives

41

3. Human Rights, Ethics, and Legal Compliance

Vice-chairperson=

Promotion System ofOccupational Health and Safety

・Prohibit the offering and receiving of inappropriate proﬁts andadvantages.
・Conduct trading through fair and free competition.

5. Environmental Consciousness
・Acquire a certiﬁcation, such as the one of Environmental Management
Systems (EMS), and promote environmental activities systematically.
・Comply with laws and regulations related to environmental protection
pertaining to air, water quality, soil, and chemical substance.
・Work on environmental load reduction in our business activities(biodiversity conservation, and resource saving and energy saving).
・Appropriately manage and dispose of waste generated in operations inaccordance with laws and regulations. Promote recycling and set a
continuous reduction goal.

6. Information Management and Contribution to Society
・Establish and appropriately manage an information security system.
・Take measures against internal and external threats, such as computervirus.
・Actively participate in social contribution activities.

7. Business Continuity Plans (BCP)・Establish BCP, and build and raise awareness about a risk management
system to prepare for unforeseen situations.
・Promote efforts to suppliers.

8. Responsible Mineral Procurement
・Prohibit and monitor the use of minerals which might serve as a sourceof funds for groups involved in internal conﬂicts and disputes.

Safety frequency rate
1.5
1

1.20

0.984

0.5

1.20

1.21

1.31

1.25

0.964

0.508
0

0

0

2018
2019
2020
2021
2022
［ Frequency rate: (total number of casualties due to industrial accidents/ total number of actual working hours)×1,000,000 ］

Safety severity rate
0.100

0.100
0.070

0.005
2018

Based on the CSR procurement policy, we started a supplier

The CSR questionnaire includes questions on the reporting

major existing suppliers to complete a survey once every ﬁveviolations, the consultation service, and the disciplinary policy

survey using a CSR check sheet in FY2022. We will ask ouryears, and new suppliers, in principle, to complete a survey
before starting business.

Of the approximately 300 suppliers of our raw materials,

suppliers in FY2022, and received responses from approxi-

0.05
0Respect for Human Rights

we conducted a questionnaire survey of approximately 150

0.15
0.1

Procurement Initiatives

0.060

0.080

0

2019

2020

0
2021

sis, there were 10 suppliers with scores below 70, and we are
getting alignment on items that require improvement.

0.060

0.001

mately 90 companies. As a result of totalizing the self-diagno-

2022［ Severity rate: (total number of working days lost /total number of actual working hours) ×1,000 ］

In the future, we will establish a mechanism to regularly

conduct a cycle of investigation, diagnosis, risk assessment,

system for violations of basic human rights and legal and ethicaland procedure. In the FY2022 survey, there were no negative
responses regarding human rights due diligence, so we did not

request any measures to prevent, mitigate, or suspend such

issues. Furthermore, we believe that conducting surveys andinterviews with individual employees of the suppliers will be oneof our future tasks.

Regarding the working environment of the suppliers, we

conduct fact-ﬁnding surveys on the production environment at
the time of quality audits.

and follow-up.

Arisawa Group (domestic)
Average of domestic manufacturing industry

42

ARISAWA INTEGRATED REPORT

About Arisawa

Value Creation

Management Policy

Sustainability

Company Overview

Sustainability（S）
Quality Improvement Initiatives

Targets and Results of Initiatives for FY2022(1) Zero complaints that are caused by the company

Under our quality policy Arisawa pledges to supply the high quality product that meets the reliability and needs of thecustomer by standing in the customer's viewpoint, we will implement the following activity guidelines. We believe that for acompany to survive and develop sustainably, it is absolutely necessary to comply with laws and regulations and provide
products of the quality that customers expect. In order to ensure thorough quality compliance, we will promote measures,such as enhancing education and strengthening quality fraud checking functions.

Activity Guidelines（1）Reduction of complaints that are caused by the company（3）Proper operation and management of measuring instruments（2）Reduction of internal percent defective

4．We will set quality targets on a yearly basis and review them as necessary.
5．We will conduct internal audits to conﬁrm the effectiveness of our quality management system, and strive to maintain andimprove it.
6．We will provide education and training to all employees to ensure that they are fully aware of our quality policy in order toeffectively utilize our quality management system.

Quality Control System
Mfg. Co. and Arisawa Fiberglass) and JIS Q 9100

Board of Directors

Quality Control Committee

Management
Committee

will work to improve the quality of our products andBoard of Operating
Ofﬁcers

Vice-chairperson(Quality Control Manager)

In addition to the Company-wide Quality

Control Committee (once a year), Factory Quality
Control Committee (once a year), and Line Quality
Committee (twice a year), which are held regularly,=(target products: aircraft materials). Based on theservices.

Committee
Memberindividual cases.

Manufacturing Dept.
→ Operating Ofﬁcer in charge, Manager,
Group Leader
Engineering Dept., Manufacturing Engineering
Dept., Information System, Sales & Marketing
Dept., Quality Assurance Dept.
→ Group Leader

43

10careless mistakes, through quality education. In addition tocomplaints, we also took seriously and examined carefully the
points raised by our customers and worked to correct them and

0.95

10

1.0
6
4

5

0

2018

2019

5

2020 2021 2022

0.83

0.96
0.71
0.50

0.5

0

2018 2019 2020 2021 2022

(2) Reduction of Internal Percent Defective(3) Collaboration with Suppliers

Each manufacturing group set targets for major products andWe regularly evaluate suppliers for quality-related nonconformi-interviews during the process patrols, we identiﬁed quality risks

audits as necessary. We also hold regular quality meetings withbottom up, and prevented defects from occurring.

important products to share customer and company require-(4) Customer Satisfaction Survey(5) Proper Operation and Management of Measuring Instruments

We conduct customer satisfaction surveys twice a year to checkWe keep our measuring instruments in proper condition at all

ules and so forth, and are working to improve customer satisfac-

operation of the instrument management system.

worked to reduce percent defective. Speciﬁcally, throughties and their responses on a regular basis and conduct supplierthat operators and inspectors perceived on a daily basis from thethe suppliers of major raw materials and raw materials used in(6) Management and Promotion of Quality Plans
・We achieved 100% of the quality targets of each department for
FY2022.

・We passed the initial audit that integrated ISO 9001 and 14001.

ments, and are promoting quality improvement initiatives.

times by sounding an alarm at each calibration cycle through thedesign and development stages, conducting risk assessments andand complaints from stakeholders in each process. This cycle

satisfaction, we make improvements by reﬂecting evaluations(7) Quality Education
We conduct general education every year to disseminate compa-

ny-wide and group-wide quality targets. Additionally, we conduct
education to provide products with higher quality

aimed atThis has led to reductions in the number of man-hours and costs

fostering quality awareness among all employees in the Manufac-

・Standards are kept up-to-date and can be viewed by eachproduct prevention training in departments subject to JIS Q

department through the document management system.

In order to incorporate customer needs and improve customer

thereby prevent complaints.

each and every employee and reduce human errors, such as

required for auditing.

In the mass production of new products, the Quality Assurance

quality patrols of each process to identify potential risks andof complaints, but also strive to raise the quality awareness of

Secretariat

Quality Control Initiatives

ment and the Manufacturing Department jointly conduct the

1.5
11（Quality Assurance Dept.）

Control Committee is shown in the ﬁgure on the right.

production. For existing products, the Quality Assurance Depart-15

tion from various aspects.

The structure of the Company-wide Quality

accompanying process risk patrols prior to the transfer ofthe use of FMEA and risk assessment, we not only reduce the risk

Quality Assurance Dept. Manager

the Individual Quality Control Committee deliberates

Department and other related departments are involved from the（％）

requirements for us regarding technical support, delivery sched-

Chairperson（Operating Ofﬁcer supervising
Quality Assurance Dept.）

quality assurance system we have established, we

By identifying potential risks and taking countermeasures with(Complaints)

prevent their recurrence in the same way as complaints.

1．We will regularly review our quality management system and continually improve its effectiveness in order to meet the requirements of ISO 9001/JIS Q 9100.
2．We will monitor our manufacturing processes and strengthen control through our quality management system to ensure thatthe products we provide meet the needs of our customers and society and increase customer satisfaction.
3．We will set the following quality targets and do our best in order to achieve the quality policy.

We have acquired ISO 9001 (target sites: Arisawa

Percent defective

Number of complaints

Quality Policy

turing Department, as well as product safety and counterfeit
9100.

We strive to improve and strengthen our quality management system through close exchange of opinions with stakeholders, and by promoting employee education, we aim to instill in all employees an awareness of emphasizing quality from the perspective of stakeholders.

enables us to improve our quality management system. Addition-

ally, in order to maintain and improve the quality management

system, we conduct internal audits twice a year to check theoperational status.

44

ARISAWA INTEGRATED REPORT

About Arisawa

Value Creation

Management Policy

Sustainability

Company Overview

Sustainability（G）
Corporate Governance

Outline of Corporate Governance Systemother organizations of the company and conducts scheduled

determined at the regular or extraordinary meetings of the Board

audits, an audit plan is made for each term pursuant to theaudits and special audits as appropriate. As for the scheduled

control of the management policy and management plans

Basic Concept of Corporate Governancerelevant internal regulations, and audits are conducted after theof Directors, the Board of Operating Ofﬁcers (comprising 1 chief

We have a corporate governance system in place to increasedecisions of the Board of Directors, where outside directors andsocial credibility and is also making efforts to secure efﬁcient andIn terms of equitable management, in line with the basic

outside corporate auditors attend.

corporate value through sustainable growth and to maintain

As for execution of operations, to ensure speedy execution andﬁnal decision by the chief executive ofﬁcer. Audit results are

executive ofﬁcer and 10 operating ofﬁcers for a total of 11

notiﬁed to the relevant departments along with speciﬁc advice

members) is in place in pursuit of management proactively andand recommendations, while reporting to, and opinion exchanges

accurately.

with, the corporate auditors are also made.

Each operating ofﬁcer plans and promotes operations

equitable management and to enhance management transparency

policy concerning the improvement of the internal control system,

In terms of management efﬁciency, to ensure expeditious

ing legal compliance. In order to enhance transparency, we

Directors or extraordinary meetings of the Board of Directors as

ing audit of the company are two members of Ernst & Younginvestors through IR activities, etc. and conduct disclosure

lished in FY2023 to deliberate and coordinate basic management

accounting audit work of the company is determined in accor-

through proactive disclosure.

decision making, we aim at management by a selected few andrestrict the number of directors to the requisite minimum. We also
employ the operating ofﬁcer system to ensure speedy executionof operations and collect highly accurate information under thewe improve organizations and systems for the purpose of ensur-

under his or her supervision upon approval at the Board ofpromote communication with our shareholders and general

well as the regular meeting of Management Committee (estab-practices as actively and promptly as possible.

policies based on decisions of the Board of Directors, other

The certiﬁed public accountants who conduct the account-

ShinNihon LLC, and the composition of assistants involved in thedance with the selection standards of the audit corporation andspeciﬁcally includes 11 certiﬁed public accountants and 8

important matters related to management, and to conduct prelimi-

others.

nary deliberations on matters to be discussed at the Board of

The results of auditing by the internal audit division and the

Directors meetings) or the Board of Operating Ofﬁcers andChanges in Enhancement of Corporate Governance System

strives for efﬁcient and speedy execution of their duties pursu-

details of accounting audits by the accounting auditors are

Although we are a company with a board of company auditors, we have in place the Assignment and Remuneration Advisory Committee,

Authority, etc.

auditors share in the recognition of such results in the course oftive directors and directors responsible for business execution, succession plan and director remuneration, and reports to the Board ofassigned to the Internal Auditting Ofﬁce, which is independent ofreported to the Board of Corporate Auditors, and the corporate

ant to the Regulations for the Segregation of Duties and Ofﬁcial

which is voluntary, that deliberates matters related to the appointment and dismissal of directors, appointment and removal of representa-

their auditing to enhance their collective audit function.

As an internal audit division, three full-time employees are

Directors.

The company's Board of Directors currently consists of four internal directors and ﬁve outside directors (including two female

directors) for a total of nine directors. The evaluation of the effectiveness of the Board of Directors are conducted by a third-party organi-

General Meeting of Shareholders

zation to ensure fairness.

Appointment & Dismissal

FY

Items

InsideMale

OutsideMale

Operating Ofﬁcers

Board of Corporate Auditors

Board of Directors

FemaleInsideOutsideInsideOutside

Male

Male

Male

FemaleServed as
directors

Advisory
Assignment・Remuneration
Advisory Committee（CEO and 5 Outside Directors） Return
Appointment & Dismissal

2015

・Issuance of corporate governance report

5

1

2

2

5

11

2016

・Self-assessment of the effectiveness of theboard of directors

2017

5

1

2

2

1

2

2

Audit

Board of Corporate Auditors
3 Corporate Auditor(incl. 2 Outside Corporate Auditor)

Accounting Audit

ReportPresident andRepresentative Director

Management Committee*

Accounting Auditors(Ernst & Young ShinNihon LLC)

Collaboration

Internal Auditing Ofﬁce
Directions

Board of Operating Ofﬁcers**

5

11

Appointment & Dismissal

Submit・Report

511

Directions &Supervision

5

Board of Directors
9 Directors(incl. 5 Outside Directors)

Appointment, Dismissal,
Directions & Supervision

Operating Ofﬁcers

Appointment & Dismissal

Compliance Committee
ESG Committee, etc.

Internal Audit

Each division, department, subsidiary, etc.

2018

2

1

2

11

5

4

2

1

2

11

4

2019

・Non-renewal of the anti-takeover measures
・Establishment of the Assignment and Remuneration
Advisory Committee (voluntary advisory body)

2020

・Assessment of the effectiveness of the Board of
Directors by a third party organization
・Introduction of exercising voting rights by anelectromagnetic method

4

3

2021

・Change of stock-based compensation for directors
from stock options to restricted stocks

4

4

4

4

2022
2023

45

5

＊The Management Committee is comprised of ﬁve operating ofﬁcers at the senior level or above, including the CEO, and was established on April 1, 2023.
＊＊Note: The Board of Operating Ofﬁcers consists of a total of 11 operating ofﬁcers (including, but not limited to, the chief executive ofﬁcer), 4 of which are concurrently assumed by the relevant directors.

Number of meetings held and main agenda items in FY2022

4

3

1

2

11

4

1

1

2

11

4

1

1

2

11

2

1

2

10

1

1

4

4

Board of Directors

Board of Operating Ofﬁcers

Assignment・Remuneration Advisory Committee

Board of Corporate Auditors

Chairperson

CEO

CEO

Outside Director

Full-time Corporate Auditor

AttendeeDirector (including outside directors),
Corporate Auditor(including outside directors)

Operating Ofﬁcers,
Corporate Auditor (full-time only)

CEO and Outside Director

Outside Corporate Auditor

The Number of Meetings

9times15times

3times9timesDeliberation
Items

Quarterly
ﬁnancial
resultsandperformance
forecasts,
annualmanagement strategy, medium-termbusiness plan, governance, general
meetings of shareholders, etc.

Quarterly
ﬁnancial
resultsandperformance
forecasts,
capitalinvestments,
annualmanagement
strategy, monthly business reports, etc.

Appointment and dismissal of directors,
Remuneration of directors, etc.

Advice to internal audits, validation of
accounting audit results, etc.

46

ARISAWA INTEGRATED REPORT

About Arisawa

Value Creation

Management Policy

Sustainability

Company Overview

Sustainability（G）
Board of Directors

Outside Directors
information on economic conditions, industry trends, relevant

and the Board of Directors is engaged in constructive discus-ing, and other matters necessary for them to fulﬁll their roles anddent outside directors as deﬁned by the Tokyo Stock Exchange

Approach to the Board of Directors Diversity

sions, including their objective opinions from an independent

The company's basic approach is to have the Board of Directors

operation. Regarding diversity, we have appointed multiple

standpoint. The outside directors, who have a wealth of experi-

insight, and a high level of expertise, within the limits of 15

business and who have experience as managers at other compa-

mendations to ensure the appropriateness and legitimacy of thecomposed of individuals with a wealth of experience, deep

directors and 4 corporate auditors set forth in the Articles ofknowledge, experience, and abilities related to each business andnies. The composition also takes gender and age into consider-

Board of Directors' decision-making.

strategies, the status of various businesses, business environ-strategies and ﬁnancial strategies. We will pursue the business

The Board of Directors is comprised of individuals with the skills

Name
Representative Director

Yuta Arisawa
Director

Corporate
Management○

Takeshi Masuda
Director

Osamu Nakajima
Director

Makoto Tai
Outside Director

Koji Nakamura
Outside Director

Kazuo Abiko

Outside Director

Hirotoshi Takada
Outside Director

Miho Numata
Outside Director

○
○
○
○

Businessstrategy /marketing○assets into business assets and returning proﬁts to shareholders.

Corporate Auditor

Outside Corporate Auditor

Koichiro Tanaka

Outside Corporate Auditor

Koichi Yokota

○
○

○
○

○
○

○

○

○

○

Makiko Horie
Hisashi Masumura○

Finance /HR / labor /Legal /
accounting /HR development risk managementﬁnancial market

○
○
○
○

○
○

○
○

International
experience

○
○
○
○

In nominating candidates for executive managers and directors

product manufacturing processes.

Attendance
Rate

Koji Nakamura

Koji Nakamura, an Outside Director, has been involved in corporate management in Japan and overseas for many
years, having served as Senior Executive Managing Ofﬁcer of Mitsui & Co., Ltd. and as Director at Sanko Gosei Ltd.
The Company has appointed him because we deem that he has extensive insight and knowledge regarding global
management from his experience as a managing ofﬁcer at a global company and that he will deliver opinions from an
outside perspective with regard to the overall management of the Company, particularly in the area of businessstrategy, and increase the rationality and transparency of the Company s management.

100%

Kazuo Abiko

After graduating from Graduate School of the California State University, Kazuo Abiko, an Outside Director, wasappointed the General Manager of Tokyo Studio and General Manager for Northeast Asia at Associated Press while also
working as the President of Foreign Correspondents Club of Japan. The Company has appointed him because we deemthat he will deliver opinions from an outside perspective and increase the rationality and transparency of the Company s
management by leveraging his knowledge in international communication and standards and ethics of journalism,
including his work as a part-time lecturer at Tokyo University of Foreign Studies and Sophia University thereafter

100%

Hirotoshi Takada

Hirotoshi Takada, an Outside Director, has served the Representative Director of NIPPON SEIKI CO., LTD. and as
Chairman, etc. of overseas subsidiaries, has been engaged over many years in sales and product planning, etc. in theautomobile industry; has a deep knowledge of that industry. The Company has appointed him because we deem that hewill deliver opinions from an outside perspective and increase the rationality and transparency of the Company byleveraging his abundant experience and broad knowledge as a manager of a company in the manufacturing industry
with a global business.

100%

Miho Numata

Miho Numata, an Outside Director, is Representative of NUMATA LAW OFFICE, and by serving as Civil Conciliation
Commissioner of Tokyo Summary Court and as Outside Corporate Auditor of Tokyo Boeki Holdings Corporation, while
managing the law ofﬁce, she has a well-balanced career. The Company has appointed him because we deem that she
will deliver opinions from an outside perspective and increase the rationality and transparency of the Company by using
her in-depth knowledge and experience as a legal expert who has worked as an attorney at law for many years, and her
sophisticated knowledge relating to governance and compliance, etc.

100%

Makiko Horie

Makiko Horie, an Outside Director, was engaged in sales to institutional investors, company surveys, and operation
related to the Japanese stock market at a global ﬁnancial institution, and also involved in management consultation andlaunching of start-ups. The Company has appointed her because we deem that she can reﬂect on management
strategies the status of the Company that investors expect by leveraging her experience and increase the rationality
and transparency of the Company.

○

Policy on Appointment and Dismissal of Directors

ment, and management issues, while arranging inspection tours of

Reasons for Appointment and Expected Role○○in charge regularly provide explanations on business plans andNameand insight necessary to achieve these goals.

R&D/
technologicalstrategies○○○

On the other hand, we support outside directors in theperformance of their duties by collecting and providing them withgies to improve capital efﬁciency by converting non-businessbusinesses and creating new businesses and the ﬁnancial strate-

Speciﬁcally, we arrange seminars for outside directors

provided by external organizations, where our operating ofﬁcers

In the medium-term business plan, we set the goal of aiming tostrategies to strengthen proﬁtability by delving into existing

responsibilities.

ence and a wide range of insight, also provide advice and recom-

Skill Matrix
maximize corporate value by executing a cycle of businesslaws and regulations, corporate governance, ﬁnancial account-directors who have extensive experience in international

ation.

Incorporation, while taking into consideration their balance of

Newly
Appointed

Evaluation of the Effectiveness of the Board of Directors
We analyze and evaluate the effectiveness of the Board ofities, and that free and open and constructive discussions arecorporate auditors with the aim of improving the functioning ofdecision-making and supervision related to business execution.

Directors based on a questionnaire survey to all directors andDismissal will occur in the event that any of the following

the Board of Directors. The survey is conducted on the condition

found, (2) laws, regulations, or articles of incorporation are

subjects. The implementation of the survey and the tabulation

tion of duties is signiﬁcantly impeded, or (4) it becomes clear

zation, and the Board of Directors deliberates based on the reportthat case, after deliberation by the Board of Directors, a decision

The results of the survey conducted this spring determined

held

at

meetings,

ensuringtheeffectiveness

of

both

On the other hand, as the role of subsidiaries in consolidat-

and corporate auditors, we select those who have extensive

cases is applicable: (1) a relationship with antisocial forces isof anonymity in order to elicit unreserved opinions from theed ﬁnancial results increases in importance, it has been pointed

for executive managers or directors or corporate auditors in theviolated, causing a signiﬁcant loss to our group, (3) the execu-

and analysis of the results are outsourced to an external organi-subsidiary management and that training for directors andthat the requirements of the appointment criteria are not met. In

to address issues.

is made to dismiss a position or to submit a proposal for dismissal

that the company's Board of Directors has a composition with theexperience, deep insight, and a high level of expertise, suitablecompany. The Board of Directors determines the nomination ofcandidates for directors based on the report of the Assignment
and Remuneration Advisory Committee, and candidates forcorporate auditors by getting consent of the Board of Corporate
Auditors.

47

A majority of ﬁve members out of the nine directors is indepen-to the general meeting of shareholders.

balance and diversity necessary to fulﬁll its roles and responsibil-

out that further efforts are needed in discussions regarding
auditors needs to be further enhanced, and the Board of

Directors shared the recognition of those points. We will continue
to work on issues identiﬁed by these analyses and evaluations
and aim for increasing our corporate value.

48

ARISAWA INTEGRATED REPORT

About Arisawa

Value Creation

Management Policy

Sustainability

Company Overview

Sustainability（G）
Board of Directors

The aggregate amount of remuneration, etc. of each category of directors and corporate auditors,
the breakdown of such aggregate amount by the type of remuneration,etc. and the number of directors and corporate auditors covered

Policy of Determination on Amount of Remuneration,etc. of Directors and Corporate Auditors
We have in place the Assignment and Remuneration Advisory Committee consisting of ﬁve outside directors and the president
for a total of six members and chaired by an independent outside director as an advisory body to the Board of Directors in orderto improve the independence, objectivity and transparency of the procedures for determining the remuneration of directors
and to enhance corporate governance. A calculation method of the details of individual remuneration for directors is determined at the Board of Directors based on deliberations and reports by the Assignment and Remuneration Advisory Committee.

Category of directors andcorporate auditors

Aggregate amountof remuneration,etc.

Directors(excluding outside directors)

Number of directors
or corporate
auditors covered

Breakdown by the type of remuneration, etc.
Performance-based
Fixed remuneration
remuneration

Monetary
remuneration, etc.

203.51million yen

106.50million yen

60.26million yen

36.74million yen

4

Corporate Auditors(excluding outside corporate auditors)

13.08million yen

ー

ー

ー

2

Outside directors andoutside corporate auditors

31.00million yen

ー

ー

ー

7

Basic Guidelines for Remuneration System for Directors

Matters Concerning Determination of Remuneration for Directors

・The system should encourage the management to improve their

The Assignment and Remuneration Advisory Committee isremuneration and to exercise their solid entrepreneurship for

Board of Directors. The details of the consultation include basic

Cross-shareholdings

allocation based on the performance of a division of which each

Method of Verifying the Reasonableness of Shareholding

Reduction of Cross-shareholdings

Regarding all cross-shareholdings held, the Board of Directors

Regarding cross-shareholdings, the company passed a resolutionof transaction performances and returns, etc., qualitativesell off and reduce the stock names with a reduced need to be

performancethroughassociating

theperformancewithsustainable development of the company.

・The system should reﬂect not only ﬁnancial performance but
also appreciation for proactive initiative with the basic spirit ofCreation, Innovation and Challenge.

・The system should attract excellent human resources for
management who can contribute to sustainable development

consulted on individual remuneration based on a resolution by the

remuneration amounts for each director and the evaluation
director is in charge in the performance-based remuneration. The

Board of Directors determines each remuneration pursuant to thereport of the Assignment and Remuneration Advisory Committee.

and enhancement of corporate value of the company.

analysis of status of business, business strategies, background of

Remuneration Structure

Veriﬁcation of Validity of Remuneration

In the case of 100% achievement of KPI, the ratio of remuneration to executive directors is as follows.
Basic remuneration

50%

Performance-based
remuneration

30%

yearly gives comprehensive consideration to quantitative analysis

Stock-based
compensation

20%

Stock-based remuneration is provided in the form of restricted stock-based remuneration(programmed to lift restrictions of transfer upon retirement)
for the purpose of sharing interests with shareholders.

Outside directors are paid only basic remuneration in consideration of their role of supervisory function that they play.

acquisition, etc., as well as risk of shareholding, and then veriﬁes

at the Board of Directors held on May 12, 2022 to progressively
held to maintain business relations.

Speciﬁcally, at the ﬁscal year ended on March 31, 2022,

and evaluates the propriety of such shareholding.

the company sold off some shares of eight names out of nine held

The Assignment and Remuneration Advisory Committee conﬁrms

analysis:

to hold the stock names and sell off and reduce the names with aaccordance with the policy for determination on the remuneration

1

2

3

of Directors.

Balance of dividend
earning rate andcapital cost

Annual amount oftransaction andamount of proﬁts

Proﬁt or loss fromvaluation of stockthat the individual remuneration of directors is calculated inof directors, veriﬁes its validity, and submits reports to the Board
The Assignment and Remuneration Advisory Committee

Following items are veriﬁed through the quantitativeat the end of March 2022. We will continue to scrutinize the need
reduced need to be held.

uses an objective and multifaceted benchmark analysis of
remuneration based on

Management Remuneration Databaserun by an outside remuneration consultant, Willis Towers Watson(WTW), to verify the validity of the individual remuneration of
directors.

Trends in Cross-shareholding(Number of stock names)(Billions of yen）

Details and Reasons for Selection of the Key Performance
Indicators (KPI) for Performance-Based Remuneration

Remuneration of Corporate Auditors, etc.

Consolidated operating proﬁt for the single ﬁscal year has been

The company's basic policy is to pay an appropriate level ofmance-based remuneration. The reasons for selecting suchhis or her duties.

adopted as the Key Performance Indicators for perforIndicators is that i) they are a ﬁnancial indicator which represents
the result of primary business activities of companies, ii) they use

net operating proﬁt less adjusted taxes (NOPLAT) to calculate
ROIC which is a target ﬁgure to be achieved of the medium-termbusiness plan, and iii) they are a ﬁnancial index used in the bonus
system for employees.

Out of amount of carbon dioxide emission reduction held up

in our Carbon Neutral Project, the company added goal attainment levels with respect to reduced usage resulted from improv-

40

30

20
16

17

16

16

remuneration to each corporate auditor for the performance of

The remuneration for corporate auditors is determined

12
20

through discussions among the corporate auditors, taking into

consideration whether they work full-time or part-time and thedivision of audit work. The remuneration for corporate auditors is

ﬁxed remuneration only, which is paid on a monthly basis, with anemphasis on strengthening their independence from management.

15

10

0

36.1
26.9

27.9

26.8
18.4

2016

2017

2018

2019

Amount shown on balance sheets (current market price)

2020

9

9
7

25.6
17.6

2021

10

2022

5
10.2
2023

0

Number of stock names

ing energy use efﬁciency to the Performance Indicators fromFY2022, and reﬂected them in remuneration from July 2023.

49

50

ARISAWA INTEGRATED REPORT

About Arisawa

Value Creation

Management Policy

Sustainability

Company Overview

Sustainability（G）
Directors and Ofﬁcers
Directors

Corporate Auditor

Director
Senior Operating Ofﬁcer
supervising Electronic Materials
Sales & Marketing Dept.;Div. Chief,Business Promotion Div.;
Deputy Div. Chief,
Innovation Promotion Div.

Director
Senior Managing Operating
Ofﬁcer supervising
Manufacturing Dept.
and Administration Dept.

President andRepresentative Director
CEO

Yuta ARISAWA

Takeshi MASUDA

Full-time Corporate Auditor

Outside Corporate Auditor

Outside Corporate Auditor

Hisashi MASUMURA

Koichiro TANAKA

Koichi YOKOTA

Osamu NAKAJIMA

CAREER HISTORYCAREER HISTORYCAREER HISTORYCAREER HISTORYCAREER HISTORYCAREER HISTORY

Apr. 1992 Joined Mitsubishi Electric Corporation

Oct. 1990 Joined the Company

Apr. 1989 Joined Mitsui & Co., Ltd.

Nov. 1987 Joined the Company

Oct. 1987 Joined Tohmatsu Aoki & Sanwa (presently Deloitte Touche

Nov. 1996 Registered as Certiﬁed Public Tax Accountant

Feb. 2002 Joined JPMorgan Securities Japan Co., Ltd.

Nov. 2003 Group Leader, Administration Planning GroupMay 2011 Department Manager, Solar Business Div., Functional Chemicals

Jul. 2005 Group Leader, Human Resources Group, Human Resources Dept.

Aug. 2003 Joined the Company

Jul. 2008 Assistant General Manager, Manufacturing Dept.

Apr. 2007 Assistant General Manager, Manufacturing Dept.

Oct. 2010 General Manager, Corporate Planning Dept.

Apr. 2009 Operating Ofﬁcer of the Company

Jun. 2011 Operating Ofﬁcer of the Company supervising Corporate Planning Dept.

Jun. 2010 Director and Senior Operating Ofﬁcer of the Company

Jun. 2015 Operating Ofﬁcer

Jun. 2011 Director and Senior Managing Operating Ofﬁcer of the Company

Jun. 2021 Director and Senior Operating Ofﬁcer of the Company

Jun. 2014 President, Representative Director of the Company (current)

Jun. 2023 Director and Senior Managing Operating Ofﬁcer of the Company (current)

Business Unit of Mitsui & Co., Ltd.
Apr. 2013 Department Manager, Advanced Materials Div., Functional
Chemicals Business Unit of Mitsui & Co., Ltd.
Jul. 2014 Department Manager, Business Development Div., Basic Chemicals

Jun. 2015 Chief Operating Ofﬁcer (COO) of the Company

Mar. 1991 Registered as Certiﬁed Public Accountant

Oct. 2010 Assistant General Manager, Manufacturing Dept.

Aug. 1998 Resident Representative of Dalian Ofﬁce, U.S. Deloitte Touche

Apr. 2012 General Manager of Human Resources Dept.

Oct. 2015 Joined the Company as Operating Ofﬁcer of the Company

Jun. 2022 Full-time Corporate Auditor of the Company (current)

Sep. 2002 Managing Director of the Japanese Operations Dept. in South
China of Shenzhen Ofﬁce in China, Deloitte Touche Tohmatsu Limited
Dec. 2003 Director and Executive Ofﬁcer; Partner supervising China Business and in

Public Tax Accountant s Association
Jun. 2020 Corporate Auditor of the Company (current)
Apr. 2021 Managing Director, Niigata Prefecture Branch Federation of

charge of Public Communication, Corporate Finance Dept. of Deloitte

supervising Electronic Materials Sales & Marketing Dept.

Jun. 2017 Chief Executive Ofﬁcer (CEO) of the Company (current)

Accountant s Association
Jan. 2004 Head, Yokota Accountant Ofﬁce (current)
Apr. 2019 General Manager, Takada Branch of Kanto-Shinetsu Certiﬁed

Tohmatsu (Ofﬁce Head)

Apr. 2018 General Manager of Human Resources Dept. and General Affairs Dept.
Oct. 2020 General Manager, General Affairs Dept.

Business Unit of Mitsui & Co., Ltd.

Apr. 2003 Director, Takada Branch of Kanto-Shinetsu Certiﬁed Public Tax

Tohmatsu LLC)

Jul. 2008 Group Leader, Administration Planning Group, Corporate Planning Dept.

Kanto-Shinetsu Certiﬁed Public Tax Accountant s Association (current)

Touche Tohmatsu (presently Deloitte Tohmatsu Financial Advisory LLC)

Jun. 2016 Director and Senior Operating Ofﬁcer of the Company (current)

Jun. 2014 Retired from Deloitte Touche Tohmatsu LLC
Jul. 2014 Established Tanaka Sogo Accountant Ofﬁce, Representative
Director (current)
Mar. 2017 Outside Corporate Auditor, ODAWARA ENGINEERING CO., LTD. (current)

Director
Senior Operating Ofﬁcer
supervising Development
Support Dept.and Innovation Center
Preparatory Ofﬁce;Div. Chief,
Innovation Promotion Div.;
Deputy Div. Chief,Business Promotion Div.
supervising Analysis Center

Jun. 2018 Auditor, Japan Automobile Research Institute (current)
Jun. 2020 Corporate Auditor of the Company (current)

Outside Directors

Outside Directors

Koji NAKAMURA

Kazuo ABIKO

Operating Ofﬁcer (excluding those serving concurrently as directors)

Makoto TAI
CAREER HISTORYCAREER HISTORYCAREER HISTORY

Apr. 1988 Joined Daiichi Denko Co., Ltd.(currently Sumitomo Electric

Apr. 1973 Joined Mitsui & Co., Ltd.

Nov. 1978 Joined Associated Press

Apr. 2004 Managing Ofﬁcer; Chief Operating Ofﬁcer of Synthetic Resins and

May 1985 Deputy General Manager of Tokyo Studio

Wintec, Inc.)

Jul. 2001 President, Foreign Correspondents' Club of Japan

Inorganic Chemicals Business Unit

Mar. 2002 Joined the Company
Jul. 2006 Group Leader, Electronic Materials Group, Research &Apr. 2006 Executive Managing Ofﬁcer; Chief Operating Ofﬁcer of Chemicals
Business Unit II

Development Dept.
Apr. 2010 Assistant General Manager, Electronic Materials Dept.
Apr. 2012 General Manager, Research & Development Dept.

Apr. 2004 General Manager of Tokyo Bureau, Associated Press
Jul. 2004 General Manager for Northeast Asia

Apr. 2009 Senior Executive Managing Ofﬁcer; Chief Operating Ofﬁcer of
EMEA (Europe, the Middle East and Africa) Business Unit

Feb. 2010 Advisor
Sep. 2011 Part-time lecturer at Sophia University

Aug. 2011 Corporate Auditor, SANKO Co., Ltd. (current)

Apr. 2015 Visiting Professor at Kanda University of International Studies

Jun. 2019 Operating Ofﬁcer

Aug. 2016 Outside Director, Sanko Gosei Ltd. (current)

Jul. 2018 Auditor, Foreign Correspondents Club of Japan

Jun. 2023 Director and Senior Operating Ofﬁcer of the Company (current)

Jun. 2020 Director of the Company (current)

Jun. 2020 Director of the Company (current)

Research & Development Dept.

Outside Directors

Outside Directors

Outside Directors

Hirotoshi TAKADA

Miho NUMATA

Makiko HORIE

CAREER HISTORYCAREER HISTORYCAREER HISTORY

Mar. 1977 Joined NIPPON SEIKI CO., LTD.

Dec. 2009 Registered as an attorney at law and joined NUMATA LAW OFFICE

Apr. 1990 Joined Nomura Securities Co., Ltd.

Apr. 2003 Director and President, UK-NSI Co., Ltd.

Jun. 2016 Representative (current)

May 1995 Joined Merrill Lynch Investment Managers Ltd. (currently

Jun. 2005 Director, NIPPON SEIKI CO., LTD.

Apr. 2018 Civil Conciliation Commissioner, Tokyo Summary Court (current)

Jun. 2008 Managing Director

Jun. 2020 Outside Corporate Auditor, Tokyo Boeki Holdings Corporation (current)

May 2016 Joined Value Create Inc.; Partner

Apr. 2011 Representative Senior Managing Director

Jun. 2021 Director of the Company (current)

Oct. 2021 Joined SDG Impact Japan Inc.; Partner (current)

Apr. 2011 General Manager, Technical division

Takeshi AIZAWA

Senior Operating Ofﬁcer supervising
Performance Materials Sales &Marketing Dept.; Deputy Division
Chief, Business Promotion Div.

Operating Ofﬁcer supervising
Procurement Dept.
and Quality Assurance Dept.;
Deputy Division Chief,
Administration Div.

Operating Ofﬁcer supervising
Functional Films Development Dept.,
Laminate Materials Development Dept.,
Molding Materials Development Dept.
and Process Technology Dept.;
Deputy Division Chief,
Innovation Promotion Div.

Shuichi KUBOTA

Takahito TANABE

Kazumi IKEDA

Operating Ofﬁcer supervising
Corporate Strategy Dept.;
Deputy Division Chief, Administration Div.

Operating Ofﬁcer supervising
Manufacturing Engineering Dept.
and Manufacturing Dept. (sub);Deputy Division Chief, Manufacturing Div.

Operating Ofﬁcer supervising
General Affairs Dept.
and Human Resources Dept.;
Deputy Division Chief, Administration Div.

Sep. 2010 Part-time lecturer at Tokyo University of Foreign Studies

Mar. 2011 Retired as Senior Executive Managing Ofﬁcer

Jun. 2015 Operating Ofﬁcer of the Company supervising Electronic Materials

Shuichi FUJITA

Yoshifumi ARA

Takao MOCHIZUKI
Operating Ofﬁcer supervising
Manufacturing Dept. (principal)
and Innovation Center Preparatory
Ofﬁce (sub); Deputy Division Chief,
Manufacturing Div.

BlackRock Japan Company, Ltd.)

Jun. 2023 Director of the Company (current)

Jun. 2011 Chairman, Wuhan Nissei Display System Co., Ltd.
Mar. 2012 Chairman, Nissei Display Sales and Development Co., Ltd. (Shanghai)Mar. 2013 President and Representative Director, NIPPON SEIKI CO., LTD.
Mar. 2014 Chairman, Dongguan Nissei Electronics Co., Ltd.
Apr. 2014 Chairman, Hong Kong Nippon Seiki Co., Ltd.
Jun. 2015 President and Representative Director, Executive Ofﬁcer, NIPPONSEIKI CO., LTD.
Jul. 2015 Chairman, Hong Kong Ek Chor Nissei Co., Ltd.
Jul. 2015 Chairman, Shanghai Nissei Display System Co., Ltd.
Mar. 2016 Chairman and Director, Thai Nippon Seiki Co., Ltd.
Jun. 2017 Vice Chairman and Director, Executive Ofﬁcer, NIPPON SEIKI CO., LTD.
Jun. 2021 Director of the Company (current)5152