CSR Report 2021

Better than Ever

Better than Ever

Editorial Policy
In FY2020, the new coronavirus disease (COVID-19) had a significant impact on corporate activities across F-techGroup, also had a considerable impact on CSR promotion activities. During pandemic COVID-19, sharing of
information across the group to promote CSR activities and contribute to communities had been more difficult thanusual.
Against this backdrop, the important themes of this report is to provide a continuous and accurate description ofenvironmental and social activities that F-tech Group has undertaken for over 10 years.
In this report while following the editing of the "CSR Report" that started in FY2017, the "Sustainable Development
Goals (SDGs*)" in mind, further enhances the content of the report, and working on expansion of ESG data disclosure.
In particular, sections on Work-Life Balance and Our Response to Automotive Electrification are also featured in
VOICE and TOPICS as important topics addressing social needs.
This report is prepared with reference to the Ministry of Environment’s “Environmental Reporting Guidelines (Fiscal
Year 2018 version) ” for environmental matters and to ISO26000 for social responsibility matters.
Furthermore, in this report, the F-tech Group is referred to as the “F-tech Group” or “the Group” .
F-tech inc. is referred to as “F-tech” or “the Company”* Sustainable Development Goals

1

F-TECH CSR REPORT 2021

Contents

01 Editorial Policy
03 Message from the Top
04 Overview of Corporate Activities
05 Company and the Group Company Profile
07 Management Philosophy and CSR
08 CSR System
09 Governance / Compliance / Risk Management
11 Creating a Comfortable Working Environment
13

VOICE

Voice Initiative for Flexible Work Style

14 Labor and Safety & Health Initiatives
15 Quality Assurance Initiatives
16 Relationship with Shareholders and Investors
17 Relationship with Local Communities
18 Environmental Philosophy / Environmental Policy
20 Environmental Management
21 Environmental Goals of F-tech GROUP
22 FY2020 Environmental & Energy Plan
23 Initiatives for Reduction of CO2 Emissions, Water Usage, and Waste Emission
24 Material Flow
25 F-tech Environmental Accounting
26 Supply Chain Management
27

TOPICS

Topics Sharing of the Group Environmental Plans of FY2020

28 Environmentally-friendly Products and Technologies
29

VOICE

Voice Developing the Highest Quality and Safe Products

30 Global Initiatives
36 Our Response to the New Coronavirus Disease (COVID-19)
37 Data Collection

Reporting Period
FY2020 (April 2020 - March 2021) achievements and partial contents outside the scopes of the reporting period.

Reporting Organizations（☞P6）
Japan :3 affiliate companies and 3 sites
Overseas: 12 affiliate companies and 14 sites

Future predictions, Plans, and Goals
This reporting contains futures with report to the “ Reporting Organizations” in the Group listed above.
The statements contained herein are forecasts based on information current at the time of inclusion and are not conclusion. As such, theresults of future business activities made differ from the forecasts described in this report.

F-TECH CSR REPORT 2021

2

Message from the Top

We pursue the essence ofa manufacturing company
with corporate slogan "Better than Ever".
President of CEO

Yuichi Fukuda

An era of uncertainty and deepening
confusion that's why thorough "Back to
Basics".
F-tech Group has started its 14th medium term businessplan in 2020. The automobile industry is going through asignificant transformation represented by C.A.S.E. We arealso facing a global decline in automobile production due tothe lack of semiconductors and other adverse effects of the
new corona virus disease (COVID-19).
To address this situation, we introduced "Back to Basics,
Challenge for New" as the Group's policy for the first halfbusiness plan and "Break through the limit! Provide the best
to the customers all over the world" as our common policy
across the group, as well as "Better than Ever" as our
corporate slogan to guide our operations.
"Back to Basics" and strengthening our focus on chassis
suspension that we specialize in while bravely addressing
the needs of the new era as "Challenge for New" suggests,
we will be able to overcome any challenges and keep
moving forward with the spirit of "Better than Ever".
In the area of work style transformation, we have worked
to provide a better working environment where everyone
can thrive by hosting web meetings and revising the way
information is shared. In addition, in order to promote IT
utilization, we have launched a cross-departmental IT
working team to identify the problems on-site and address
the issues through collaboration with the information
system department. These efforts have enabled, forexample, the internal development of an approval clearance
system and paperless delivery of daily work reports. In thedevelopment area, we are currently working to improve oursimulation technologies in order to achieve development
without prototyping in the future.
"To ensure enhanced compliance, we have revised Our
Action Guidelines so they are easier to understand and weare currently having them translated for our overseas
subsidiaries. By sharing a common understanding of Our
Action Agenda and by using them as principles to guide
every employee's action, we will help achieve a better
society.
In order to ensure diversity, we have implemented
policies and processes to allow us to embrace diversity
3

F-TECH CSR REPORT 2021

regardless of sex, age and nationality. Our head office andplant in Kuki received a Gold certification from Saitama
Prefecture for practicing diverse ways of working, in addition
to a Plus evaluation for actively revising the way male
employees work. Our Kameyama Office has been awarded aGood Practice Award as a Company Promoting Work Style
Transformation in Mie for its ongoing effort to transform theway people work as well as its long-time contribution to
local communities. (☞P.11)"
In the area of the environment, the group's total CO2
emissions and total waste has decreased with decreasing
sales per unit due partly to the production adjustment
during the corona crisis. However, while the total water
consumption has decreased, water consumption per unit
has increased and needs to be improved. (☞P.18)

From "Challenge for New" to "Better
than Ever" - We are moving forward bydeveloping suspension parts for electricvehiclesThere is a rapid increase in the movement to encourage
shift to the power structure of automobiles fromdecarbonization and response to environmental problems.
The trend toward BEVs (battery electric vehicles) and FCVs
(fuel cell vehicles) will not stop. BEVs require a much lighter
subframe that meets the high requirements for impact
safety and operational stability. At F-tech, we have achieved
optimum product design by leveraging our proprietary
optimum design simulator and the product development
process that enables strength, endurance and performance
analysis. We also work vigorously to develop a network thatallows us to maximize our potential through technologicalexchange with other companies. (☞P.28)
Although the outbreak of COVID-19 occurred soon after
the restructuring of our CSR committee and it remains
uncertain when the Corona crisis will end, we are committed
to achieving stronger operational performance across thegroup by steadily addressing CSR issues. We will continue topursue the essence of craftsmanship and will never stopchasing "Better than Ever".

Overview of Corporate Activities
We will use pandemic COVID-19 as an opportunity to strengthen
and improve operational processes across the group.
Financial Indicators

Environmental Indicators■Sales■CO2 emissions

Despite the quick recovery in China, sales in Japan andNorth America continued to decline and consolidated sales
decreased by 16% year-on-year to ¥183.6 billion.

Target: Reduce CO2 emissions per unit of production by■Operating income
Operating income decreased by 24.9% from the previous
year to ¥3.1 billion. The decline in profits was caused by the
reduction in consolidated sales due to the pandemic
COVID-19, despite an increase in product sales and thepositive effects of cost reduction in Japan. The profits werealso affected by a decline in automobile production due tothe lack of semiconductors.

4.2% from the FY2017 level
In FY2020, the unit CO2 emission rate was 0.381tCO2 per
million yen of sales (-13.9% compared to FY2017).

■Amount of waste generated
Target: Reduce water consumption per unit ofproduction by 3% from the FY2017 level
The actual amount of water used in FY2020 was 0,022
tons/million yen of sales (-9.9% compared to FY2017).

■Amount of water resources used

■Interest-bearing debt

Target: Reduce waste discharge per unit of production

Interest-bearing debt was ¥51.3 billion by the end of
FY2019 as we needed to maintain sufficient liquidity on
hand to respond to the pandemic COVID-19. However, wehave steadily decreased borrowing in FY2020.

by 3.3% from the FY2017 level
The actual result of FY2020 was 3.48 m3/million yen ofsales (+11% compared to FY2017).

■Interest-bearing debt ratio
Although it rose to 42.5% at the end of FY2015, it hadremained in the 30% range every year since 2017 as we havecontinuously strengthened the management of the total
asset balance.

Item

Financial Indicators
Environmental Indicators

Unit

FY2016FY2017FY2018FY2019FY2020Sales

1 million yen

197,941

226,060

235,361

218,712

183,647

Operating income

1 million yen

8,035

6,856

6,580

4,088

3,072

Operating income
ratio

%

4.1

3.0

2.8

1.9

1.7

ROE

%

12.8

12.8

6.9

0.8

-2.9

Interest-bearing
debt balance

1 million yen

59,12959,51046,22051,342

49,565Interest-bearing
debt ratio

%

40.9

39.5

33.7

38.3

36.3

CO2 emissions
volume (intensity)

t-CO2/1 million
yen sales

0.483

0.443

0.432

0.415

0.381

Water resource usage
volume (intensity )m3/1 million
yen sales

3.43

3.12

3.08

3.14

3.48

Waste emissions
volume (intensity)

ton/1 million
yen sales

0.045

0.025

0.021

0.023

0.022

F-TECH CSR REPORT 2021

4

Overview of Corporate Activities
What does "Craftsmanship" mean to F-tech GroupF-tech entered the manufacturing of auto parts in 1967. Now, as a "comprehensive chassis system manufacturer forundercarriage" for automobiles, we have an integrated production system in Japan, North America, Asia, and China, from design
and trial production to mass production, and have been responding to the high demands of finished vehicle manufacturers. We
have earned high praise and solid trust.
The strength of our "craftsmanship" and developing technologies as a suspension parts specialist as well as in our production
and development processes that allow us to respond quickly across the globe. Going forward, by leveraging and further
strengthening these two strengths, we will contribute to the society through the generation of new added value and will achieve
unrivalled competitiveness in "craftsmanship" as the world's leading chassis suspension supplier and we aim for the best of
specialized manufacturer in the area of undercarriage function in the world.

Our Products

The Leading Chassis Suspension Supplier that Can Respondto the Increasing 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 highquality required by automobile manufacturers, we have achieved strength, durability and weight reduction at the same time.

■Design Technology Capability
By utilizing our
proprietary analysis
technology, we arepromoting development
based on productperformance predictions
from things like runtime suspension system.

Suspension component parts

■Pursuit of Cutting-Edge Processing Technology
In addition to hydroforming and friction stir
welding (FSW) technologies, we have also
developed FUT-1, an ultra-precise plastic
processing technology that allows for optimal
thickness adjustment.

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    


Mounted components■Corporate Overview
Company Name    
Head Office Address 
 
Established
Capital
Representative 
Employees (consolidated)
Business Activities   
 5

F-TECH CSR REPORT 2021

■Consolidated sales by regional segments

226,060



197,941

■Number of employees by regional segment235,361

218,712


8,918

183,647

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9,997

10,195

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9,400
8,750
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Asia
52,279


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Asia
67,360Asia
65,909

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

Asia
59,132

Asia
53,549

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Asia
29%

Japan
11%



N. America
60%



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Overview of Corporate Activities
Relationship of Trust
Gained high trust as an important safety parts supplier
Our competence in technology, quality and responsiveness acquired as a supplier of Honda are earing trust from more andmore automobile companies all over the world.


Sales Results by Customer


Main Customers


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

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Honda Motor Co., Ltd.
General Motors Company
Nissan Motor Co., Ltd.
Honda R&D Co., Ltd.
Nissan Shatai, Co., Ltd.
Mitsubishi Motors Corporation
Suzuki Motor Corporation
Toyota Motor Manufacturing
and others

Global Network
10 countries, 11 production sites, and 8 technology development
Opened new development sites in each region where we have production sites to ensure prompt response to customers'
needs. We aim to improve our operations across the Group through information sharing across all areas including quality,
development, procurement and the environment.

UNITED KINGDOM●F.tech R&D North America Inc. European Branch
FUTIAN MOULD TECHNOLOGY (YANTAI) CO., LTD.
YANTAI FUYAN MOULD CO., LTD
F.tech Wuhan Inc.
●
F-Tech Wuhan Inc. ●Johnan Wuhan Inc. ●●F.tech Zhongshan Inc.
F-TECH AUTOMOTIVE CONPORNENTS PRIVATE LIMTED.●
F-Tech Zhongshan Inc.
Progressive Tools & Components (P) LTD.●
F-Tech R&D (Guangzhou) Inc.
F.tech Mfg., (Thailand) Ltd. ●●F.tech R&D Philippines Inc.
Johnan F.tech (Thailand) LTD.●●F.tech Philippines Mfg., Inc.

PHILIPPINES●PT.F.TECH INDONESIA
PT.JFD INDONESIA●●Johnan America, Inc.
●
●F&P Georgia, A division of F&P America Mfg., Inc.
●Johnan De Mexico, S.A.de C.V.
●FEG de Queretaro, S.A.de C.V.
●F&P mfg., De Mexico S.A.DE.C.V.

MEXICO

Reterra Inc.

Johanan Manufacturing Inc.
Haga Technical Center●●● ●★ Head oﬃce, and Kuki Plant●

Kameyama Plant●

Equipment Center●

Kyushu F-tech Inc.

●●●
●
●

●F&P Mfg., Inc.
●Dyna-Mig, A division of F&P Mfg., Inc.

F&P America Mfg., Inc.
F.tech R&D North America Inc.● ●Michigan Branch Oﬃce

CHINA
THAILAND

INDIA

CANADA

UNITED STATESOF AMERICA

Johnan UK Ltd.● ●F.tech Inc. Oﬃce UK

Fukuda Engineering Co., Ltd.

Consolidated subsidiaries
Aﬃliated companies
Branch oﬃces★ 、〇  ●   、◎  

F-tech Inc. [Reporting Sites: 3 sites]

Affiliated Overseas Companies [Reporting Site : 14 sites]★  ◎★    ◎★ ◎●­ 

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3 Domestic Subsidiaries & 1 Affiliated Company[Reporting Sites : 4 sites]● ◎●    ◎●      ◎●   
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               

F-TECH CSR REPORT 2021

6

Management Philosophy and CSR
Mission Statement
From a global perspective, we strive to contribute to our society and to improve the quality oflife through manufacturing of the highest quality products with ambition and sincerity.

Corporate Philosophy
Challenging Spirit

Respecting People

Making Profit

Our Action Guidelines■

■

       
    
    
  
                          

              
   ■    

■   ■   

          ■ 

          

■              
  

■         
 ­       ■                 
      
       
            ■

      
               
   
      

■    
     
         

Our CSR Approach                    
     

Corporate Philosophy and CSR
       
   



  Corporate Philosophy
Challenging Spirit

7

F-TECH CSR REPORT 2021

Respecting People

Making Profit

Realizing a sustainable society

Corporate valueRealizing the corporate
mission statement

CSR System
We work to establish CSR system as F-tech group.

We did our best to share information
despite the lack of meetings due to the
COVID-19 pandemic.

Establish more robust CSR processes
across global locations, starting withaffiliated companies in Japan

Our Company-Wide CSR committee works with eachcommittee (The chart below) to identify the challenges
faced by F Group, set optimum goals and promote CSR
activities across the group. We also translate and distribute"Our Action Guidelines" to overseas subsidiaries to guidetheir CSR activities and ensure a common understanding
across our global locations. In addition, we are currently
preparing to translate its guideline for each overseas
subsidiary to ensure a global understanding of our CSR
activities.
Our offices in Japan and overseas, subsidiaries andaffiliated companies are all involved in environmental
conservation activities. At the annual Global Environmental
Conference, representatives from each office/company
gather to share and report on their activities. However, in
2020, as the conference could not be convened due to the
COVID-19 pandemic, the reports created by each
office/company were compiled and shared by the secretariat
instead.
We have also addressed various social issues across theGroup by ensuring risks are managed by the Risk
Management Committee, having the Health and Safety
Committee analyze and improve workplace safety, ensuring
employees' stress level is monitored by the Compliance
Committee and by promoting safety and quality throughthe activities of the Quality Evaluation Committee.

In order to establish more robust CSR processes acrossglobal locations, we rearranged our CSR management
structure by appointing the general manager as the VP of
Company-Wide CSR including the head office and affiliatedcompanies in Japan. In addition, members of committee
secretariats as well as promotion management members
from each department were also reshuffled, and the newgoals of our CSR activities under the new structure wereacknowledged by the CSR Committee in February 2020.
The Company-wide CSR Committee consisted of officers
appointed from each department in Japan addresses the
improvement of our CSR performance independently byfocusing on the challenges identified by eachcompany/department and improving the Group's
operations and internal control.
Our officers also attend monthly management meetings
at overseas subsidiaries to manage and supervise theiroperation processes. Our subsidiaries in Mexico andIndonesia, for example, are rapidly expanding theirequipment and personnel to respond to the demand of themarket. It is therefore important to consider the situations
unique to each region and the size of each company before
revising their decision making process.

■Company-wide CSR Management System


 

 

 
 



  


 

   


 

 

    

  
     

 



 

  







  
     

F-TECH CSR REPORT 2021

8

Governance / Compliance / Risk Management
We are committed to continuously improving our governanceprocesses even if the situation remains uncertain.
Corporate Governance Structure
The Group has committed management that focusesstakeholders in mind, including all of the shareholders,customers, and creditors, as well as regional societies, andworkers, the Group is endeavoring to maximize theCompany's continuous and long-term shareholder return asa basic goal for corporate governance.
As the decision-making body for management issues, theCompany's Board of Directors, consisting of 5 directors(including 2 outside directors), implements importantbusiness executions, legal matters as well As monitors
business executions. We separate the management frombusiness execution function by introducing an executive
officer system to strengthen the decision-making, oversightfunctions of the Board of Directors for expediting businessexecutions.
In addition, to ensure monitoring of management, F-tech
has appointed 2 Independent Outside Directors, whose
external viewpoints are actively Incorporated into
management by receiving opinions and suggestions frommultiple perspective. Moreover, the directors' terms of office
are limited to one year to facilitate the Company's ability torespond proactively to changes in the businessenvironment.
For overseas businesses, the executive officer of the head
office will be appointed as the chairman of the board of theoverseas subsidiary for each regional segment, and will
participate in important decision making of the overseas
subsidiary.
Since the establishment of the Company-wide CSR

Committee in June 2017, we have convened the Risk
Management Committee and the Compliance Committee
more than twice a year and have required each subsidiary to
conduct self-appraisal using our CSR checklist. The board of
directors then makes supervisory decisions in view of thereported results of self-appraisal and the existing efforts toaddress the challenges.
These three committees track risk control measures,
improve risk management and prevent potential risks acrossthe Group by proactively identifying various company-wideissues as part of their efforts to improve our corporate
governance and internal control.

Risk Management Initiatives
At F-tech Group, we have ensured effective management
and avoidance of various risks by establishing "RiskManagement Guidelines" in June 2006. In addition, the Risk
Management Committee launched in September 2015 andconsisting of department heads identifies risks
accompanying the execution of business activities andexamines ways to manage and address risks across theCompany. In December 2019, we also launched a working
group focusing on BCPs (Business Continuity Plans). In
December 2019, we also launched a working group focusing
on BCPs (Business Continuity Plans).
In case of an unforeseen event such as major disasters, anemergency task force in which the president acts as thegeneral manager is put into place immediately and identifies
necessary responses for early restoration and recovery.










   ↑↓

   ↑                  

                 

       
    

9F-TECH CSR REPORT 2021 
 


 

Governance / Compliance / Risk Management

Compliance Initiatives

Security Initiatives

The Group established its Corporate Ethics Committee in
October 2004. The committee not only protects proponents
but also monitors and makes decisions about important
issues that cannot be handled by individual departments.
In November 2004, we set forth Our Action Guidelines(Corporate Code of Conduct) in order to prevent violationsof laws, and in June 2006, we established CSR system by the"Compliance Regulations" based on based on improving
corporate ethics and legal compliance. Following theestablishment of a "Corporate Ethics Kaizen Desk", a system
in which employees and other workers in the Group to
directly report or consult with the Company, a new"Compliance Committee" was established in September
2015, as well as an "External Suggestion Window" (locatedwithin our lawyer's office) and "Audit & Supervisory Board
Member and Outside Director Suggestion Window" foranonymous reports, creating an environment wheresuggestions can be easily made through multiple points ofcontact.
Following the review of Our Action Guidelines in October
2018, it was added the manual to easier to understand in
April 2019 which has been continuously ueded to theemployees for staff training, email newsletters and ourinternal portal sites.
In July 2019, all overseas
subsidiaries are checked
whether "suggestion box" or"reporting desk" have been
set up or not, and theiroperation is supervised by
F-tech. We are promoting
the stratification of training
programs according to age
while translating anddistributing Our Action
Guidelines for each country
to ensure understanding
across the Group.

At F-tech Group, we provided Information Security
Guidelines to all employees in April 2019 to ensure
understanding across the Group. The minutes of board
meetings and other important meetings are managed andstored properly in accordance with our Document & Ledger
Management Regulations, Confidentiality Regulations andInformation System Management Regulations. Each contract
is either stored in the library or processed in accordancewith our Contract Management Regulations after being
uploaded in the management system.
In FY2020, the number of global cyber-attacks usinge-mail is increasing, and in order to prevent damage, we
provided our domestic employees with training on targeted
attack emails. While the e-mail open rate was 3% when we
provided the training in 2018, it decreased to 1% in FY2020
that proves a heightened security awareness. In addition, inorder to deal with the ever-changing cyber security issues ofcompanies, we plan to prepare related regulations, manuals,
etc., as well as thoroughly educate and train employees.
The disclosure of information to stakeholders is carriedout in accordance with the TSE disclosure requirements,
through consultations with the TSE and lawyers as required.
Going forward, we will continue to maintain appropriate
disclosure procedures by improving our information
management practices in view of the revised regulations
related to information management.



Our response to COVID-19 pandemic.
At F-tech, the administrative departments such as HR,
General Affairs, Accounting and Information Security as wellas other departments including Quality, Safety, Environment
and Procurement cooperate and deal with the newcoronavirus pandemic. (Response to the New Coronavirus(COVID-19) Pandemic on P36)

  

F-TECH CSR REPORT 2021

10

Creating a Comfortable Working Environment
Reflecting our philosophy of respecting people, we are committed
to providing a sound and comfortable working environment.
Diversity Initiatives

Promoting Active Participation of
Female Employees

F-tech aims to create a workplace where everyone,
regardless of gender, can show their individuality andabilities. There have been great improvements to ourworking environment in this regard, particularly within the
manufacturing, engineering, development and procurement
departments where most tasks had been performed by male
employees. Initiatives to increase the placement of female
employees has been vigorously promoted, too, enabling
women to work in much wider areas. Until 10 years ago,
women did not work in manufacturing sites that handled
heavy metal plates. However, the availability of support
equipment has allowed women to work in these areas,
paving the way for new generations of female engineers.
Going forward, in accordance with Act on Promotion of
Women's Participation, we will continue to recruit anddevelop more female leaders to promote female
participation across all areas. On the other hand, we cannot
maximize female participation without changing the way
male employees work. For that reason, we aim to provide anenvironment where both men and women can achieve an
ideal balance between work and personal life and lead afulfilling social life.

Empowerment of Foreign Employees
and Revitalization of the GroupAt F-tech, we recognize the importance of maintaining astrong collaboration with overseas locations, which in turnrequires diverse human resources. Following an active
recruitment of foreign nationals, employees of diverse
nationalities now work at and make an indispensable
contribution to F-tech.
We have also been actively accepting short-time trainees
from our overseas locations and technical intern trainees
from abroad. In order to help our foreign employees tounderstand our operations, we are committed to creating aworking environment friendly to foreign nationals bytranslating notices and manuals into multiple languages andby organizing events for social interaction.
We also do our best to accommodate different religious
needs by providing a prayer room for Muslim employees, forexample.

Female employees ratio

Group photo with Philippine trainees

Promoting Active Participation of Senior
Generation

At F-tech, we provide an environment where our
employees approaching their retirement age of 60 cancontinue to work after their retirement, while also providing
information on retirement planning through the provision ofseminars. In July 2019, we launched a new program called"Takumi System" to provide rehired retirees with anopportunity to motivate themselves and pass on their skills.
The program allows highly skilled retirees to be certified as a
Takumi or mentor, thereby giving them a chance to pass ontheir skill to their successors while being compensated fortheir contribution. (17 retirees are certified as Takumi as July
2021.)

Number of rehired retirees (mentor candidates)
・Rehired part-time employees: 46 (as of July 2021)
Certified Takumi's/mentors: 17

11

F-TECH CSR REPORT 2021

Active Participation of Those with
Disabilities

At F-tech, we are committed to hiring people withdisabilities as well as creating a working environment where
every individual can perform to their maximum abilities andfeel a sense of fulfilment.
As of today, we employ 23 disabled workers or 2.4% of all
employees, exceeding the legally required employment rateof 2.3% (22 workers).

Creating a Comfortable Working Environment

Efforts to improve our employees'
work-life balance

At F-tech, under the corporate philosophy of "respecting
people", we believe that a fulfilling private life is necessary to
work with a sense of purpose, and we emphasize work-lifebalance. We are also committed to creating a comfortableworking environment across the entire Group, where all
employees including those caring for young children andaging parents can thrive. We explained some of our efforts
to achieve work-life balance below.

Reduction of overtime work andpromotion of taking annual paid leave

・Overtime hours are, in principle, limited to 20 hours permonth and long working hours are avoided where
possible by ensuring an effective time management
through labor-management collaboration. While theaverage overtime hours of non-management employees
was 11 hours per month in FY2019, it was 5.9 hours in
FY2020, reflecting our management's efforts to manage
working hours and avoid working long hours.
・We set a goal for all employees to use all of their paid leavetime before it expires and our non-management
employees have achieved it for 22 years in a row .
・We revised our employment regulation to make half-day
paid leave more available to those employees withchildren or other family members requiring care byincreasing it from 4 times to 20 times a year in FY2019.
・In August 2020, flextime that had already been available inthe development and sales departments started to be
introduced in other departments. It has allowed our
employees to balance work and personal life, in turnmaking them a more efficient worker. However, it also has
a drawback of disrupting communication and we are
currently working to minimize such disruption by listening
to our employees.
・In February 2020, we were awarded "Gold Plus"certification by Saitama Prefecture for practicing diverse
ways of working. We have been awarded "Gold" in thepast, this time we could be awarded "Gold Plus" by being
evaluated for actively revising the way male employees
work, including making child-care leave more accessible
by male employees.

Helping our employees balance familycare and work

At F-tech, we are committed to creating a working
environment where those with children and other family
members requiring care can work with a sense of security. To
achieve this, we have held management seminars onbalancing work and childcare/nursing since FY2018, whileproviding all employees with information on family careincluding a Guidebook on childcare and nursing support
through our company portal site.
Between FY2016 and FY2020, 33 female employees or
100% of those who gave birth during the period tookchildcare leave and 32 or 97% of them returned to work. The
number of male employees taking childcare leave is also
increasing, with 9 men having taken the leave since FY2015,
including one in FY2020.
To ensure that the employees can feel supported while
they are on childcare leave, they are interviewed by theirsupervisor prior to and after the leave period and arecontacted regularly to share information during the leave.
Upon returning to work, they will be entitled to shorter
working hours, which will be available until the child finishes
Grade 3 and which 14 employees are currently using.
Nursing care leave is available for the period of one year in
total, up to three times per eligible family member. As withchildcare leave, those on nursing care leave are interviewed
and contacted regularly during the leave period.
Going forward, we are committed to creating anenvironment where all employees can balance work andfamily responsibilities and continue to thrive and work for along time.

Initiative for Promotion of Human
Rights Awareness

From the perspective of "Respecting people" which is ourcompany's philosophy, we provide employees with training
to allow them to respect others and prevent the occurrenceof various types of harassment, including child labor andforced labor, and then track their compliance.
We are also committed to providing an open workplace
where people can come forward easily by operatinginternal/outside whistleblower hotlines for anonymous
reports of human rights orcompliance violation.

F-TECH CSR REPORT 2021

12

Initiative for Flexible Work Style VOICE
I can balance childcare
and work with peace ofmind even in a different
culturePurchasing Division, Purchasing Department

Quan jiao, Zheng

I joined F-tech in April 2018 and currently work in the procurement
department. Although I was worried when I found out that I was
pregnant after being at the Company for two years, I could continue towork with peace of mind, thanks to the kind support of my supervisorand senior colleagues. After being on childcare leave for a year andthree months, I returned to work in April 2021.
While on childcare leave, my supervisor ensured that I didn't feel
alienated by contacting me regularly, and I could confidently return towork. I could also build a good communication by sharing the updates
on my journey as a new mother. Thanks to this, I could focus onchildcare and make the most of the time with my newborn throughout
the leave period.
As both my husband and I are from China, none of us were familiar
with giving birth or raising a child in Japan. However, Thanks to thekind advice from senior colleagues with children as well as the help of
our family members, our child now enjoys going to a nursery school. In
China, it is customary for working parents to leave their kids with their
grandparents while at work and there aren't any facilities that provide
care to children under three. I especially appreciated that I was allowed
to be on leave until the child turned one as childcare leave is usuallyavailable only for three months in China.
Upon returning to work, I was assigned to a new project but havebeen able to balance work and child care thanks to shorter working
hours. Going forward, as part of the team in charge of material
procurement, I will continue to do my best to reduce the cost of
materials.

I work in the Production Control Section at Kuki Plant and my main
responsibility is to improve logistics. My wife who also work at the Head
Office took childcare leave and returned to work in April 2021.
Although it was our first daughter and there was so much we didn't know,
thanks to the friendly atmosphere at work, we could talk and ask questions
about child care without feeling uncomfortable.
As the parents of both of us live far from us, it is physically impossible for
us to get much help from our parents. By keeping a good balance between
work and childcare, I've tried not to place an unfair burden on my wife.
At F-tech, we embrace a working environment that allows us to maintain agood work-life balance, with efforts to reduce long-hour labor and consume
all of the carried-over leave time having been undertaken for a long time. I've
also tried to spend more time looking after our child with my wife by leaving
work on time.
While being on childcare leave, we were interviewed online by our
supervisors prior to our return to work, and could go back to work without
any problems or worries.
Even when excellent programs are in place, employees cannot use them inan unaccommodating environment. At F-tech, we have long had an
accommodating culture which allows those with children to continue
working even if their parents are not available to help.
I would like to continue to live a fulfilled life by managing both work andchildcare.

13

F-TECH CSR REPORT 2021

The culture to support
employees withchildren is being
fostered.
 

Takashi Iino

Labor and Safety & Health Initiatives
We are promoting the sharing of common safety & health rules
across our global locations.
As in FY2020, F-tech* and FEG are committed tocontinuing to implement our Company-wide Safety Policy
and to "improving our safety performance at all locations bystandardizing and sharing health and safety rules globally".
As part of this effort, we have reinforced our safety andhealth procedures across the Group since FY2018.
At the Company-wide Safety Committee consisting ofcommittee members from both F-tech* and FEG, members
acknowledged how the issues identified in the previous
session of the committee are addressed at each location andvigorously exchanged opinions on our response to therevised governmental and ministerial orders. As in previous
years, the committee also set "developing standardized
evaluation procedures and rules for ensuring safety (regular
work/non-regular work)" as a priority task. We are also
committed to reducing the number of accidents not related
to work including commuting accidents and traffic
accidents, with the aim of eliminating and preventing
accidents with or without lost work time.
In FY2021, as in the previous year, we will continue ourefforts in accordance with our Company-wide Safety Policy
and set "the formulation of a list of prohibited work
procedure, one-point lessons and the operation of risk
management processes" as priority measure.
＊     
 

We are committed to developing
effective processes for managing
chemical substances

At F-tech, we are committed to preventing occupational
accidents caused by chemical substances by assessing therisks of chemical substances used in existing processes.
    

We are responding to the issuance ofthe new ordinance that obliges
businesses to prevent the hazardous
impact on the health of workers

In response to the rising concern on the risk of welding
fumes that workers performing metal-arc welding are
exposed to, the Ministry of Health, Labor and Welfare has
revised orders for enforcement of
the Order for Enforcement ofIndustrial Safety and Health Act
including the Ordinance on thePrevention of the Hazard due toSpecified Chemical Substances tooblige businesses to undertake
measures to prevent hazardous
impact on the health of workers.
The revised ordinance has beenin effect since 1 April 2021*.

＊  
      ­    
 ­ "Requirements for Specified Chemical Substances" include:

1. Ventilation using a general ventilation device
2. Measurement of welding fumes and use and fit testing of
respiratory protective equipment based on themeasurement results
3. Cleaning
4. Appointment of a Specified Chemical Process Manager
5. Provision of health examinations designed for welders
6. Other necessary measures
As each requirement is due to come into effect on different
dates, we have started with measuring the density (orindividual exposure) of welding fumes and providing healthexaminations designed for welders to prevent delays in
response.

We will foster the culture of safety byabiding by the principles        
        To be able to ensure safety and health in the workplaceand create and maintain an environment where people canwork without any fear, it is essential for all employees toperform required procedures, wear appropriate protective
equipment and follow basic rules such as the 5S in theworkplace.
As a company committed to preventing past troubles
from reoccurring, we havedeveloped and will continue toimprove these rules.
Going forward, we will turnthese rules into educational
materials to systematically pass on
the lessons.
This will allow our employees todevelop an attitude of compliance,in turn fostering the culture ofsafety.
F-TECH CSR REPORT 2021

14

Quality Assurance Initiatives
We are committed to achieving higher customer satisfaction
at all locations of the Group.
Accelerating our efforts to improve
quality to achieve the final goals of the
14th Mid-Term Plan by FY2022

Since the launch the 14th Mid-Term Plan in FY2020, ourteams across the Group have worked hard to deliver thehighest value (quality) and maximize customer satisfaction
as part of our quality improvement efforts. As a result, wemade improvement in all areas including the number ofregistration (defect rate), production scrap rate (ppm) anddefect and scrap costs, achieving improved quality
performance across the Group. However, as the newcoronavirus pandemic has required each affiliate company
to respond to the changes (caused by production andpersonnel adjustments to ensure social distancing, inparticular) that they had never dealt with before, some of
the important quality measures that had initially beenplanned have been delayed. In this fiscal year, to be able todevelop the processes required to achieve the final goals of
the current Mid-Term Plan by FY2022, we will accelerate ourefforts even more and make up for the last year's delays.

Launch of Regional Q-MTGs

At F-tech, we had held the Group-wide annual quality
conference where quality managers from production sites inand outside Japan gathered to discuss ways to improve
quality. However, given the increasing number of
production sites and the variance of quality levels andchallenges across regions, we replaced the Group-wide
conference with "Regional Q-MTGs" to enable speedier
discussions. During the last fiscal year, despite themovement restrictions to prevent the spread of the newcoronavirus, we could continue our efforts to improve ourquality performance by holding Regional Q-MTGs online
and sharing updates and opinions within each region.

        

Development of new quality
management/assurance methods using
IT tools

At F-tech, we are developing new quality
management/assurance methods that can replace theexisting methods by minimizing difficulties, waste andinconsistency through an increased use of IT.
Replacing manual welding inspection relying on the eyeof individual inspectors with digital inspection using IT tools(such as welding evaluation and testing systems) is one of
the examples, as well as digital evaluation of welded plates
that are not subject to human errors and the natural
inconsistencies of the human eye. Daily quality/equipment
inspection that had traditionally performed on paper has
also been taken over by a new operation system using
electronic tools (terminals), allowing for timely checking andeasier tracking of operational quality while enabling a
speedier response to changes.

 ­ 
  
  

    

Leveraging IT for the daily
maintenance of quality
and equipment conditions

15

F-TECH CSR REPORT 2021

Relationship with Shareholders and Investors
We are committed to achieving more transparent operations
and a sustainable growth by ensuring timely and appropriate
disclosure of information.
At F-tech, we stipulate "our policy to promote
constructive dialogue with shareholders" in F-tech corporate
governance guideline and are committed to timely andappropriate 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 areader-friendly manner information, including legal
disclosures, management policies, financial status, andbusiness initiatives, as well as procedures and reasons in theappointment of the senior management and nomination of,
directors, and Audit & Supervisory Board Member
candidates.

Communication with Shareholders,Private Investors, and Institutional
Investors

At F-tech, we strive for timely and appropriate
information disclosure to shareholders, individual investors
and domestic and overseas institutional investors.
In order for our investors to better understand ourCompany, we provide various opportunities forcommunication including shareholders' meeting, financial
results briefings, corporate briefings for individual investors,
facility tours, one-on-one meetings, telephone conferencesand exhibitions at various events. We are committed tocontinuing such efforts to create more fans of our Group.

Constructive dialogue with shareholders(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 effort 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
Mid-Term corporate value, F-tech approaches these
dialogues based on the following policies.
1. To the extent reasonable, dialogues with shareholders are
conducted by the President & 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.
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. In order for thoroughly fair information disclosure, theexecutive officer responsible for IR strictly securesimportant non-public information in accordance withcompany rules.

       Although the financial results briefing to be held in May
was canceled due to the spread of the COVID-19 pandemic,
we could hold the financial results briefing for the second
quarter in November by taking thorough measures toprevent the infection. We have also continued our dialogue
with our investors via telephone or web conferences.

F-TECH CSR REPORT 2021

16

Relationship with Local Communities
Because of the corona crisis,
we are committed to creating a stronger bondwith local communities than ever before.
 Our efforts to help prevent the spread of
the new coronavirus as a member of
local communities
In July 2020, we donated 33,000 washable urethane facemasks to local governments and welfare organizations to
help reduce the number of
infected individuals and to
get the normal life back assoon as possible.

            
                   

Provision of plant tours during thecorona crisis

At F-tech, we have welcomed requests for plant tours
from local communities and local primary schools. It is ourpleasure to help them learn how our products are
manufactured and to enhance interests in automobiles. We
would also like the children to feel the energetic atmosphereof the plant especially because we are always convinced it is
the children that convey what they feel candidly to those
who support our communities
In FY2020, most companies stopped providing plant tours
on the ground of the corona crisis. However, we decided tocontinue providing tours at Kameyama Office and Kyushu
F-tech to help develop curiosity in local primary school
students by explaining how our products are manufactured
and by answering various questions.
It goes without saying that we cannot agree to providing
tours unless we are definitely sure that we will not spreadthe coronavirus. We therefore provided visiting children witha safe environment by mobilizing all employees to sanitize
the desk and chairs in the room where briefings and Q&A
sessions are held, as well as any place that can be touchedby hand.
It was great to see the excitement of the children who
asked questions and how grateful and appreciative both theteachers and students were. We could have a reallymeaningful communication with the local communities
through the provision of our tours.

Other social contribution activities conducted at our domestic plants and facility in FY2020
    


 

 

 

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



17

F-TECH CSR REPORT 2021

    
     ・ 
・­  ­   
  

Environmental Policy / Environmental Philosophy
We will work to reduce the environmental impact ofour vehicles throughout their life cycles.
Basic concept toward the environment
As a manufacturer of automotive components, F-tech has
long cultivated its technologies to ensure safety, throughintegrated system of production from R&D to
manufacturing, distribution.
With the increasing popularity of electric and hybrid
vehicles equipped with heavy batteries such as fuel-efficient
vehicles, we have vigorously pursued our efforts to reduce
environmental impact caused by our business activities. To
be chosen as an "expectable supplier" by automobile
companies, we are to contribute to the fuel-efficiency andmass production on safe, environmentally-friendly andlightweight products required. So far F-tech has met theserequirements.
Automobiles are built by assembling components
developed and manufactured by parts suppliers. They
therefore require substantial environmental resources
throughout their lifecycle until they are disposed. At F-tech,
we recognize that our business activities form part of thislifecycle and strive to help achieve a sustainable society byvigorously reducing environmental impact caused by ourbusiness activities.

  In order to become No.1 in the environmental area in the automotive industry, we will make the most effort toestablish a future with rich nature and low carbon by having each of us extending our understanding of global
environmental issues and proactively engaging in the continuous preservation of the environment in all areas ofour corporate activities.

  
（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）Strive 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 appropriately

F-TECH CSR REPORT 2021

18

Environmental Policy / Environmental Philosophy

Map of Important Issues in theEnvironmental Field■Critical Issue Identification Process

F-tech has identified important issues regarding its
environmental activities, taking into account requests andexpectations from stakeholders, including customers andlocal communities. The materiality of the identified issues ischecked with our company's business criticality and thecurrent level of initiatives, and is reflected in the Company's
Mid-Term business plan.



Sorting andidentifying issues
and requirementsfrom stakeholders

Reﬂection in
Mid-Term businessplans  ­ 

・  ・     ・   ・   
     ・   ・ ・     
   ­   
・   

・       ・
     
・
  ・  
 

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   

Important Environmental Issues
As part of its efforts to realize a sustainable society, F-tech
is working to reduce its environmental impact by focusing
on the following important environmental issues: reductionof CO2 emissions; environmental conservation of air, waterand soil; reduction of resources, water and waste;management of chemical substances; development ofenvironmentally friendly products; and conservation of
biodiversity.
In 2017, we established quantitative targets for CO2
emissions reduction, water resource reduction, and waste
reduction as part of our 2030 Global Environmental Targets,
but in 2020, we revised our 2030 targets. This is due to thesignificant difference in the current situation from thestandard of 2013. There has been various changes in the past
few years, including changes in production conditions at eachsite, changes in production facilities, and the construction of
new plants. Therefore, the base year was changed to 2017, andthe volume of reduction was revised to the same level as the2013 base year, and the target value was set.
19

Identiﬁcation ofmateriality at F-tech

F-TECH CSR REPORT 2021



■2030 Global Environmental Targets■Reduce CO2 emission intensity by 18%
Base year: Comparison with FY 2017
Index: Sales■Reduce water consumption intensity by 14%
Base year: Comparison with FY 2017
Index: Sales■Reduce waste intensity by 13%

Base year: Comparison with FY 2017
Index: Sales※CO2 emissions target: Energy used in the plantExcluded item: Distribution, company vehicles, welded
CO2 gas CO2 gas emission from welding※In order to make greenhouse effect gas emission andwater use more consistent, sales include inter-grouptransactions.

Environmental Management
We will enhance our management systemwith ISO 50001 as the core.
All F-tech Environment Management
SystemIn order to minimize the environmental impact of thebusiness activities, our group is promoting ISO 14001
certification, an international environmental standard. In
1998, we began efforts to acquire ISO 14001 certification at
our domestic sites, and as of now, all our development andproduction sites have been certified. Aiming to acquirecertification for all overseas production sites. The mostrecent completion of certification registration was in May
2017 at Mexican production site established in 2012. The
remaining sites (FEGQ/FTI) will work on a Mid-Term Plan toacquire certification.
In our Group, we began global expansion of ourenvironmental activities in 2008. In 2013, we obtained ISO
50001 certification, the international energy standard, and in
2015, we issued the Global F-tech Energy Management
System as a common system to all Group companies. We are
now working to expand ISO 50001 certification to ouroverseas sites.

Organizational Structure

In conjunction with its global expansion of ourenvironmental activities in 2008, our Group established anenvironmental management system led by Japan. We haveestablished an environmental organization system byappointing President a person responsible and Manager
person in charge of practical operations at each overseas
site. (See figure below)

Status of compliance withenvironmental laws and regulations

Based on our group's Environmental Philosophy, we are
striving to comply with regulations of each country andregion and requirements of stakeholders by utilizing the ISO
14001 environmental management system. There were no
major environmental violations, fines, or other serious
accidents in FY2020.

Development of core energy-saving
human personnel

At F-tech, we develop talent who can perform energy
audits required for ISO 50001 and call them "coreenergy-saving personnel". As energy diagnosis and analysis
requires a high level of expertise in equipment and energy
saving, development of core personnel is essential. In
FY2020, we provided our core energy-saving personnel withplant simulation data to help them develop knowledge onenergy saving and improve our ability to make proposals
and train human personnel to tackle the challenges ofsolutions.

Internal Environmental Audits

For our Company's global expansion of the environment,
it is important to ensure that the environmental
management system and energy management system inJapan, which will be critical to be compatible with thesystems and standards. To confirm this, we conduct internal
environmental audits periodically.
In order to conduct effective audits, our Company
regularly holds seminars for internal environmental auditorsand strives to continuously increase the number of auditors.
We conduct highly impartial audits by having auditors fromvarious divisions participate in audits. In fiscal 2020, 15
auditors participated in the internal audit by taking
necessary measurements for COVID-19. The number ofparticipants is 10 members lower than normal time.

■F-tech Group's Environmental Management System         ・      
・ 
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


 ・      
・ 
  




 ※  

 
 ・      
・ 
  


  ­




・  ・      ・       
＊

F-TECH CSR REPORT 2021

20

14th Mid-Term Environment
F-tech Group's Environmental Goals The
Plan (FY2020-2022)

Facilitating the Group's growth as a leader in the environment space
We revised part of the plan in response to the corona crisis.
Progress of the 14th Mid-Term
Environment Plan

Revisions to Major Plans
The global implementation of the ISO 50001 including
the plan to start the support of overseas implementationfrom 2016 as well as the goal to complete theimplementation at FPA, FTZ, FTW and FMTL by the end of
FY2020 has been delayed and is due to be resumed during
the planning of the next Mid-Term Plan.
The external disclosure of the environmental report byeach production site has also been disrupted by the closureof facilities due to the corona crisis and has been postponedby a year.

FY2020 marks the first year of the 14th Mid-Term Plan and
an important year for achieving its goals by 2030. In FY2020,
we had to revise part of the Mid-Term Plan in response to
the significant impact of the corona crisis. The
implementation of ISO 50001 across the Group wasparticularly affected, with the plan to help overseas officesthat had not yet introduced the standard having been
postponed until the pandemic ended.
The performance of environmental indicators per unit ofproduction was also affected significantly, due to decreasing
production caused by the closure of some production sites,
as well as production adjustment in response to the lack ofsemiconductors.
We are currently addressing these situations remotelyfrom Japan by developing and improving the equipment
management ledger for each location and by proposing
energy-saving solutions for their equipment.
Please see page 23 for environmental indicators.

＊Implementation of the ISO 50001 across the group
In October 2013, our Kameyama Site in Mie became the first facility toacquire ISO 50001 Energy Management Certification as an automobile
parts supplier in Japan. In 2015, we launched a group-wide standardizedenergy management system called "Global F-tech Energy Management
System'' based on the existing processes of Kameyama Site. By
implementing this system that conforms to all the requirements of the
ISO 50001 and leverages our proprietary techniques across the Group,
we promote a horizontal implementation across all production sites.

The 1st year's plan of the 14th Mid-Term Environmental Plan (2020 to 2022) (Major plan)               ­                   





    ）

       〇    ）

           ）

       〇


 

                                         

F-TECH CSR REPORT 2021    ）

    ）

    ）

    ）

    ）

    ）

【                    】
     〇       

          〇    ­   〇〇     ※  ¡     ¡        ¢   

21



                          

FY2020 Environmental and Energy Plan
Environmental and Energy Plan for Domestic Sites of F-tech

Progress of the FY2020 Environmental
and Energy Plan (Domestic)
In FY2020, we could achieve our targets in many
management areas.
Our total CO2 emissions were reduced by about 11% fromlast year although we failed to achieve the target for CO2
emissions per unit of production. This was caused mainly by
the decreased production due to the corona crisis and thelack of semiconductors as well as the consequent reduction
in energy efficiency. The regular ventilation to prevent thetransmission of the new coronavirus has also caused asignificant decrease in air conditioning efficiency.

Although we have promoted the global implementationof the ISO 50001 since the launch of the 13th Mid-Term Plan
as a priority, with the end of the pandemic being uncertain,
we have instead focused on the domestic implementation of
the standard.
In addition, we have also been developing a global
environmental management system since FY2020.
Going forward, we will continue to promote thesemeasures to improve energy efficiency per unit ofproduction across the Group, in order to ensure theachievement of our targets.

Results of the FY2020 Environment and Energy Plan
       

          






 

   


                           ­ ­     
­ 

    

  
           

  

            
                

    
 

                            

   ­〇    ※  ¡     ¡        ¢   

×

○

○

○

○

   

F-TECH CSR REPORT 2021

22

Efforts to Reduce CO2 Emissions, Water Consumption, and Waste Emissions
We will strive to improve data accuracy throughout the Group.

        → ■Japan■North America■China■Asia and Oceania

t-CO₂

200000180000t-CO₂／ million

0.443

0.432

0.50
0.415

160000140000120000■ Intensity

120,275

120,531

0.45

0.381

0.40

108,390

80000

China31%

0.25
0.20

60000

0.15

40000

0.10

20000

0.05

0

0.00

2019

Asia and Oceania8%

0.30
85,3082018

Japan24%

0.35

1000002017 

2020

North America37%

Our production decreased at many sites,
due to the effects of the corona crisis andproduction adjustments in response to thelack of semiconductors. Our CO2 emissions
decreased by 21% (23,082 tons) from thelast fiscal year. Among different regions,
China increased its CO2 emissions by 24%
because of the quick recovery of its
production sites. In regions except China,
Asia and Oceania recorded the highest
reduction rate of 45% (5,417 tons), while
the highest reduction amount (19,351
tons) was recorded by North America.
In particular, our North American
subsidiary F&P America has achieved its
reduction target per production unit byreducing 12,415 tons of CO2 in total,through the increased use of carbon-freenuclear electricity.

      →   ■Japan■North America■China■Asia and Oceania■ Intensity㎥

1200000

3.48
3.12

3.08

846,332

858,573

1000000
800000㎥／ million

3.14
819,5433.23
778,022600000 
Japan12%

2.77

Asia and Oceania19%
China32%

2.31
1.85
1.38

4000000.92200000
0

3.70

0.46
2017

2018

2019

2020

North America37%

0

Our water consumption decreased by
5% (42,521 m3) from the previous fiscal
year. The majority of our water
consumption came fromproduction-related activities including
washing or surface processing of products
during the painting process,electrodeposition coating and the use as
steam. However, despite a decrease insales due to the corona crisis, we could not
reduce our water consumption, in turnfailing to achieve the target.
Going forward, by alleviating the highdependency on water at many of our
production sites to ensure both the waterand product quality during the painting
process, as well as by sharing effective
measures through a more integrated water
management across the group, we will
strive for a further reduction of our water
consumption.

       → ■Japan■North America■China■Asia and Oceania

ton

16000
14400

■ Intensity
ton ／ million

0.030

0.025

12800

0.021

11200

0.023

0.022

0.020

9600
8000
6400

6,774

5,739

6,073

4800

5,027

2018

2019

2020

0.000

※        ※          

23

F-TECH CSR REPORT 2021

Asia and Oceania5%
China19%

0.010
0.005

1600
2017

Japan16%

0.015

3200
0

0.025

 

North America61%

Our waste emissions decreased by 17%(1046 tons) from the previous fiscal year.
Among regions, the production sites in
China and Japan have increased theiremissions by 312 tons, while those in
North America and Asia and Oceania havedecreased their emissions by 1,358 tons as
a result of the decreasing production,
leading in turn to the achievement of theirgoal. While this reduction was a result of
the decreasing production, with waste
emissions reduction being identified as thesecond important challenge after CO2
emissions reduction by our Global
Environmental Conference, we willcontinue our efforts to reduce waste
emissions by sharing effective measuresacross the Group.

Material FlowINPUTOUTPUT   5,207 t
778 k㎥  
 

1,526ｔ  

183,998 MWh↓  4,772 k㎥

   

3,195 k㎥

CO285,308ｔ-CO 2

  ­2,605 t

­ 

 

131 kℓ   49 kℓ
9 kℓ­ 
45 kℓ

  

2,148 kℓCO2

5,796ｔ-CO2    

・OUTPUT of CO2 emissions are calculated by multiplying INPUT energy consumption and CO2 conversion factor .

・The calculation method for CO2 is based on the "Greenhouse Gas Calculation and Reporting Manual" of Ministry of Economy,
Trade and Industry and Ministry of the Environment and "The Greenhouse Gas Protocol" and WRI/WBCSD.
・Domestic power consumption is calculated based on the latest coefficients for each power company.
・The period covered is from April 2020 to March 2021.

F-TECH CSR REPORT 2021

24

Environmental Accounting at F-tech
At F-tech, we have prepared the information required to perform environmental accounting since the issuance of our firstenvironmental report before it was replaced by the CSR report. In order to ensure continuous improvement of our efforts andaccountability to stakeholders, it is essential to accurately recognize and evaluate the investment in and the costs ofenvironmental conservation, in turn enabling an aggregated analysis of the benefits.
Going forward, we plan to incorporate as many overseas subsidiaries as possible into our accounting process.

① Environment Conservation Costs       

  

①     

②
      ­        

③             



 

 

 

   

 

 

    



          

        


② Environmental Conservation Effects                   
    

    

    



 



  

 

㎥

  




₂

  

   ／ 







  









  









   



 

 



  

     
    
               

③ Economic Benefit Associated with Environmental Conservation Activities        

                  





 

※                 ­   
※  ­           

25

F-TECH CSR REPORT 2021

Supply Chain Management
We will promote activities focusing on the value chain.

Purchasing Policy

The Purchasing Department will conduct fair, equitable,
and highly transparent transactions in accordance with theCompany's "Action Guidelines" and promote initiatives
aimed at coexistence and co-prosperity with suppliers.
         
   

Partnerships with Business Partners

We will strive for mutual understanding with our business
partners as a good partner to make better products, andbuild a relationship of trust with the idea of coexistence andmutual prosperity by making full use of mutual wisdom andingenuity from an equal standpoint.

Green Purchasing

The F-tech Group has established the "F-tech Green
Purchasing Guidelines" as a basic concept for green
purchasing, which prioritizes the purchase ofenvironmentally friendly parts, materials and products.
We request our suppliers to take the following actions.
・  

・   
・     ・     

Purchasing Policy Briefing

The purchasing policy briefing is held every year at avenue, but in consideration of preventing infections tovisitors and our employees due to the corona virus, we will
not hold it again this year and will only distributeinformation.
In April 2021, we distributed purchasing policy briefing
materials and examples of our environmental efforts to 80
business partners, and asked them to cooperate in ourenvironmental efforts status survey.

■Survey of Environmental Initiatives
1.Survey of environmentally hazardous substances(1) Energy consumption(2) Amount of water resources used
2.Establishment and achievement status of CO2
reduction
3.Status of Biodiversity Activities

Grasping the greenhouse gas
emissions in the value chain

Greenhouse gas emissions from domestic suppliers■GHG emissions■ Grasp rate

t-CO₂

%

5000
4000
3000

95.7%

100%

84.2%

100
92.0%

1,851

40

1,615

1000

669

2016

80
60

2,679

2000

0

100%

2017

2018

2019

512
2020

20
0

                   
       ­                        
   

Examples of Environmental
Improvement(1) Reduced the environmental load associated withmovement by maximizing the use of web meetings. We
refrained from moving within the prefecture as much as
possible and utilized 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 Contained Chemical
Substances in Products

In response to regulations on chemical substances
contained in products, the Group has established amanagement system at each site and conducts IMDS* surveys.
Substances that are harmful to humans and the environment
and whose use is prohibited or regulated by law are defined inthe "F-tech Standards for the Management of Chemical
Substances in Products" and the use of these substances isstrictly prohibited.
In addition, through our green purchasing activities, we areworking to eliminate the use of these substances with theunderstanding of our suppliers, and are providing ourcustomers with products that do not contain these substances.
* IMDS : International Material Data System (Material database forthe automotive industry)

Responsible Mineral Procurement

We will continue to investigate mineral sourcing that is
related not only to conflict but also to human rights abuses,
environmental destruction, and other irregularities, and strive
to purchase products that do not contain minerals originatingfrom conflict zones or high-risk areas. We use CMRP*(Latest
version) as the internationally formatted template that RMI *(Responsible Minerals Initiative) publishes annually for
Responsible Minerals Procurement Initiative.
*1 RMI: Responsible Minerals Initiative (Conflict Minerals Free Initiative)*2 CMRT: Conflict Minerals Reporting Template
F-TECH CSR REPORT 2021

26

TOPICS

Sharing of Group Environmental Measures in FY2020

At F-tech, we had held the group-wide Environmental Conference since 2009.
In FY2020, however, we were forced to reorganize the event due to the pandemic of COVID-19, and instead published theprevious year's reports by each location to share environmental measures. A total of 72 environmental measures from 15
domestic and overseas sites were submitted, producing a reduction effect worth around ¥64 million in FY2019. The total
improvement effect of these environmental measures amounted to around ¥470 million, helping reduce both environmental
impact and production costs across the Group. The information from the secretariat is as down below.

(1) Progress Confirmation of "2030 Global Environmental Targets"
We shared the scope and results in the first half of FY2020 of the 14th Mid-Term Plan, evaluated the progress toward achieving
2030 global environmental targets and confirmed the global environmental targets for FY2021.
With only ten years left until 2030, we will be required to set increasingly stricter targets going forward. Our secretariat inJapan has therefore improved the way our targets are managed to allow for an integrated management across the Group.
① Ensure the sharing of environmental results within each overseas location in addition to that between each location and thesecretariat in Japan.
② Instead of just disclosing the results of each location, appoint a person who provides a monthly overview of the progress ateach location.
③ Accelerate the turnaround for compiling data for environmental evaluation from the current two months later to the next
month across all overseas locations. This will allow problems to be identified and addressed earlier.

(2) Water Risks Initiatives
Water risks such as droughts, floods, water pollution, andlimited availability of water are beginning to be recognized
as one of big issues and has been discussing measures toreduce water consumption as a priority at our Global
Environmental Conference. However, as water consumption
is inseparable from our production and quality
management activities, reducing it has been increasingly
challenging. Due to reduce water consumption in the
future, we will consider how to deal with these risks at
Global Environment Conference by conducting a moredetailed survey, such as what kind of water quality isrequired for each process.

(3) Reorganization of the Global
Environmental Conference in
response to COVID-19
Amid COVID-19, we were forced to reorganize our annual
Global Environmental Conference.
As we are required to address an increasing number ofchallenges to achieve a low-carbon society, the conference
has served as a platform for environmental decision making,information sharing and talent development across theglobe. However, as a measure to prevent the spread of
COVID-19, meetings on the global environment will be held
separately by each region from FY2020.

In FY2020, FMTL (Thailand) was named the best site, while F&P (Canada) was
recognized for implementing the best measure.


■

  

27

F-TECH CSR REPORT 2021



 

 
 

  
 

                          
      ­        
     
 

Environmentally Friendly Products and Technologies
Helping achieve the provision of lighter electric vehicles
with our proprietary technologies
Addressing the Need to Reduce theWeight of Electric Vehicles
The automobile industry is said to be in a period ofchange once in 100 years, which is driven by not only
technological development but also by the entry of new
automobile manufacturers and changing motorization andits infrastructure.

  






One of the viewpoints is "EV (electric vehicle)". It is
required to equip with heavier battery than gas vehicle,
however the weight of one car is increasing, and it isnecessary to reduce the weight of each part more than
before.
We continuously have produced lightweight and strong
product that adapt the demands such as low fuelconsumption and improvement of vehicle performance byapplying the development capabilities and production
technology.

F-tech's Simulation Technology
In the latest development of subframes for EV, thedemands such as collision safety performance andmaneuverability are difficult to enabled due to increased
weight. We have succeeded in constructing a new productframe that achieves weight reduction, collision absorption
and specific requirements of EV by applying uniqueoptimization and collision simulation systems, andmass-produce it.



  




­    

Batteries designed for EVs currently weigh around 400-500
kg, depending on the vehicle type. Manufacturers tocompensate for the increased overall weight of each vehicle.
Manufacturers should consider weight increase by mounting abattery.
As batteries can increase the weight of compact cars to thatof middle-sized cars, manufacturers need to design cars thatcan meet the strength and rigidity requirements with lighterparts including a lighter subframe.


   Haga Technical Center Controls Global R&D System which Operates 24 hours a Day
It has been
established as a
research institute in1990, Haga TechnicalCenter (Haga-machi,
Haga-gun, Tochigi). It
has a total of 165
members including 132
members in the development headquarter, 24 members inthe sales headquarter and 9 members in the engineering
headquarter.
Our five development sites in North America, China andPhilippines are assigned a role specific to each site and arecontrolled by Haga Technical Center. Our R&D system thathelmed by Technical Center covers time differences, works
24-hour period in conjunction with 5 locations: North
America, Philippine, China and Japan, and offers speed andcost performance that leads our industry in cutting edge
research and development.
Nowadays, the site leads in-house and contractdevelopment of chassis system, new market development,
production expansion in India and approaches to EV madein China. Nowadays, the sites leads in-house and contractdevelopment of chassis system, new market development,
production expansion in India and approaches to EV madein China, by working together with each locations.

F-TECH CSR REPORT 2021

28

VOICE

Development of Safe Products of the Highest Quality

F-voice      

I would like to contribute to the society and help
reduce the environmental impact by continuing
to provide the best environmentally friendly
auto parts that can meet the needs of the era         ­ 

Approaching to the Increasing Popularity
of Electric Vehicles across the Globe froman Environmental Perspective
I was interested in manufacturing and automobiles andwhen I was a student, I visited a motor show. I was attracted
to F-tech's unique technologies such as hydroforming
adjustable pedals and integrated production system, andchoose to join it.
Since I joined F-tech, I have been designing a part calledsubframe. This part plays an important role in equipping anengine or a motor and in supporting the suspension andbody of a vehicle.
In recent years, due to rising concerns about CO2
emissions related to the production and use of automobiles,
the automobile industry across the world is facing stricter
environmental regulations. With automobile manufacturers
accelerating their efforts to electrify vehicles (EV), we arealso required to make necessary changes in suspension
systems that we specialize in.

Challenge for the Biggest Problem "Weight
Reduction of Parts" with Our Design
Optimization Simulation Technology.
Enabling longer distance cruising with lighter auto parts
is one of the important factors that affect to worth of EV.
However, the provision of lighter parts is not the only
requirement for EV. In fact, it involves a whole new range of

29

F-TECH CSR REPORT 2021

requirements including parts layouts that had not existed
before, higher performance to compensate for the increased
overall vehicle weight and crash safety performance that canprotect electrical system parts.
At Haga Technical Center, we address these challenges byleveraging our proprietary simulation technology for
optimum designing, and through a number of discussions
with both the development and production department, wedeveloped a lightweight, high performance subframe for EV
with a new framework structure that can be produced
internally at F-tech.

Keep taking on new challenges leveraging theextensive knowhow accumulated by F-tech
When creating something new, it is normal that things do
not set off as expected. Our success was enabled by a solid
foundation of technologies and knowhow that theCompany has cultivated over many years.
As designing requires collaboration with all departments,
we often face difficult issues. However, every time I see thecars equipped with the parts that I designed in cities, I feel
moved and motivated.
Going forward, I wish to grow with the Company as weleverage our long-cultivated knowhow and take on new
challenges to provide optimal parts for EVs and continue toaddress environmental issues.

Global Initiatives

Japan            At Kuki Plant, we have held the monthly "Brainstorming Meeting for Improvement"
since 2020 to deliver financial, quality and environmental improvement .This meetinghas helped ideas of those working at the front lines be heard, as well as theirobservations and questions.
The idea to reduce electricity by minimizing the preheating time of the annealing
furnace was used. Our staff in the field noticed that there was a significant time gap
between the point at which the furnace was preheated to the temperature suitable for
production and when the production was initiated and that eliminating this time gap
should help save electricity. While employees were supposed to follow the instructions
recommended by the manufacturer of each equipment, questioning these
instructions with a spirit of transformation eventually led to an improvement in thiscase. While being a simple solution, we managed to reduce as much as 14,448
kilowatts of electricity per year.







        

  
   ­    

    

  

Mie Prefecture operates a program to recognize and register the Companies
Promoting Work Style Reform in Mie in order to create comfortable working
environments. The recognized/registered companies are featured in the prefecture's
website and PR magazine and are allowed to use the award logo on their businesscards and pamphlets, thereby improving their company image and recognition.
Since its registration as a Company Promoting Work Style Reform in 2019, ourKameyama Plant has encouraged its employees to use their annual paid leave,
reduced long-hour labor and provided the students of local schools with a plant tour.
In FY2020, the plant was awarded The Good Practice Award from the governor of Miefor its long-time contribution to local communities through these activities. The plantalso applied for The Work-Life Balance Promotion Award launched recently by
Kameyama City and became one of the four certified companies, in turn increasing ourrecognition in the city.

 


     
 


      

   

   

At Haga Technical Center, we conduct research and development to provide weightsaving automobile parts. The parts designed by us are mass-produced at eachproduction site to help our customers across the globe increase the fuel efficiency of
their vehicles while helping conserve the global environment.
At the same time, we have also reduced the CO2 emissions from the equipment that
we use. The reduction of the warm-up operation time of vibration exciters by ourtechnology development department is one of the main achievements during thecurrent term. Up until the previous term, vibration exciters were preheated for twohours preventing the occurrence of sludge which decreased the competence ofvibration exciters.
However, by using additive for the prevention of sludge and reducing thepreheating time to 0.5 hours, we could reduce electricity use from 12,760 kWh to 3,190
kWh, achieving a reduction of 9,570 KWH in total or 3,617 kilograms of CO2 equivalent.
Our electricity bill decreased by a significant 75% or ¥57,420 (¥18/kWh).

F-TECH CSR REPORT 2021

30

Global Initiatives

Japan  

     

At FEG, we stock emergency food and drinking water in our book storage as part ofour Business Continuity Plan (BCP) to ensure the safety of our employees and enable a
speedy resumption of operations.
The food and water are stored for being provided to our employees in case thecompany becomes isolated in a disaster and they are prevented from going home.
The items stocked include alfalfa rice chosen for its versatility and disposability and
500-milliliter water bottles which are easier to carry and drink from than 2-liter ones.
Our supply consists of alfalfa rice of five different flavors enough to provide threemeals to all employees, as well as five 500-milliliter bottles of water per employee,
whose use-by dates are regularly checked and are replaced as required according toour manual for emergency stockpiling. We have also created a pamphlet to help
employees build their own emergency food supply at home, which is displayed in our
cafeteria.

   

    
        
During FY2020, we had decided not to provide plant tours for elementary school
students due to the corona crisis. However, following strong requests from local
elementary schools, we changed the initial plan and decided to resume plant tours.
Although it was our first time to provide plant tours during a pandemic, we could
welcome the students into a safe environment by mobilizing all employees to disinfectchairs, desks, and door knobs. We also took other measures such as sanitizing thestudents' hands before they entered the facility, in turn, we felt relieved to ensure theirsafety during the tour to the end.
At the end of the tour, the teacher showed her gratitude by saying, "Thank you foragreeing to give us a tour after being declined by all the other companies due to thecorona crisis. The students had been really excited to come here especially withvarious events being cancelled." 

        
­   
As we are located in a headwater area and can affect the quality of the drinking
water downstream in Tokyo, we are subject to regular on-site inspections by thegovernment.
To meet their strict requirements, the wastewater from our two factories is limited
to 40 tons per day, any sludge included in the wastewater is collected by a filter press
and then the water is filtered through a biological treatment system before being
discharged to the river.
Removal of suspended solids (SS) that used to be ensured by having the samples
collected and sent by us tested by a testing service provider has been replaced byreal-time monitoring using a measurement device attached to the drain. The device isalso equipped with a function to automatically stop releasing water in case of
emergency during night hours. In addition, we have defined the abnormal levels of
Mixed Liquor Suspended Solids (MLSS) by measuring them on a daily basis and havedeveloped a process to notify managers when they reach the warning value.
Going forward, we will continue to manage and monitor our MLSS levels in order tohelp achieve the Sustainable Development Goals developed by the United Nations.

31

F-TECH CSR REPORT 2021






Global Initiatives

North America ­ ­        At F&P America, a total of 104 employees donated their blood in June, August,November and March in FY2020.

  

We awarded two senior students at Troy High School and two senior students at
Troy Christian High School with $5,000 as a non-repayable scholarship through The
Troy Foundation.



One of the two scholarships given to students of the same school must be awarded
to a senior who will be attending an accredited 2 or 4 year college or university in acourse of study leading to a degree in mechanical engineering, robotics,
manufacturing management, etc.
The other of the two scholarships given to students of the same school must beawarded to a senior who will be attending an accredited 2 or 4 year college oruniversity in a course of study leading to a degree in business, accounting, finance,
marketing, human resources, etc.
Applicants must have a GPA of at least 3.0.
In the selection of scholarship recipients, the financial situation of the applicant's
family and his or her contribution to community welfare are considered in addition to
his/her academic performance.

   ­  ­  ­    ­  
At FPG, we are committed to promoting our employees' well-being. Sincefoundation, we have regarded the well-being of our employees as the top priority for
individuals and businesses. In recent years, we have expanded our efforts through theorganization of events with health insurance agents and the provision of workout
sessions with instructors.
At the community level, we organized a charity marathon to help those struggling
to pay the medical cost required to care for a family member diagnosed with an
intractable disease. These activities to help the local community have in turn helped us
improve communication with the community. We have an especially good reputationin Rome where our factory is located.
The information about these events is communicated to all employees, whocompete with each other for a given period of time. Engaging in these activities hashelped our employees make contact with many people, in turn leading to the creationof teamwork. Although we were forced to cancel many events in FY2020 due to
COVID-19, we are pleased that our Walking Challenge and Weight Challenge could still
go ahead.
Promoting our employees' health has had secondary benefits such as reduced
health insurance premiums and local contribution, making these efforts even moremeaningful. While mitigation of the effects of COVID-19 and a further relaxation of
restrictions are awaited, we will continue to support and expand these activities.

        ­   Improving the quality of our development is one of our top ongoing priorities. At
F-tech R&D North America, since we got ISO 9001:2015 to be confirmed in 2017, wehave supported the certification of the F&P factory as an IATF 19649:2016 compliant
facility by meeting the needs as its remote support division. In 2020, we supported theaccreditation of the F&P Group as an ISO 9001:2015 compliant organization byfacilitating an audit based on IATF 16949:2016 criteria. In addition, in order toguarantee our testing quality and ensure laboratory capability and management thatmeet the industry standard, we have started to look into the requirements of ISO
17025:2017 with the aim of being audited and certified in 2021.
We also use our existing EPR (Enterprise Resource Planning) system to convert our
supplier database into a digital format and monitor their compliance to specificrequirements and certification standards, thereby ensuring the quality of ourmaterials.

F-TECH CSR REPORT 2021

32

Global Initiatives

North America      ­At F&P, we engaged in the following environmental activities in 2020 while
mitigating the effects of COVID-19. As part of our efforts to reduce the environmental
impact of our operations, we encourage our employees to make suggestions.

・ We took part in a program that allows the participants to access a vast wealth of best practices
and improved ideas through the database called Bee Manufacturing 2030 offered incooperation with Honda of Canada Mfg. This action program also helps the participantsorganize, track, and manage their activities.
・ We installed a compressed air usage meter to predict demand and identify waste products.
・ We introduced an upgraded control system equipped with a VFD controller for stamping scrap
conveyors to reduce energy consumption. We also replaced existing lighting with LED lights.
・ We managed to reduce the number of truck shipments by 6 per month by increasing thenumber of parts to be stamped.
・ By providing our welding workers with training on the use of consumable supplies, we reduced
the consumption of collets and nozzles by 50% in some welding areas.

           
DYNA-MIG has supported United Way, a non-profit organization in the United States,for over 20 years. We chose to support this organization because they address criticalissues such as poverty, homelessness, starvation, social isolation, and mental health.
The donations from our employees are used to offer invaluable programs andservices in communities in Perth and Huron Counties. In 2020, a total of 25,342 people
were supported.
DYNA-MIG ranked in the 11th place for United Way's Top 20 Workplaces Campaign
2020 Huron-Perth by exceeding the target amount of $1.7 million and raising $1.92
million. Going forward, we will continue to help address the issues faced by local
communities such as poverty and the continuing effects of COVID-19 by achieving ourfundraising targets.

    

  

   
 ­The response to COVID-19 and the use of sanitizing gels and disposable face masks
resulted in a significant increase in waste, which had incurred significant disposal costs
therefore we were supposed to take into consideration how to deal with the waste.
We addressed this situation by purchasing sanitizer in larger containers andproviding our employees with washable cloth face masks. We also donated 200 cloth
face masks to the Japanese school in Guanajuato.
Partitions were installed between the seats of all company buses as well as handsanitizer dispensers.
In September 2020, we launched a cap collection campaign to increase our
employees' awareness of the importance of recycling. As the sales of plastic caps areused to support a pediatric cancer corporation, the response from our employees has
been very positive and their interest is increasing.


    
             
At FEGQ, we provide information on hygiene, diet, and vaccination to prevent thecommon cold and influenza every year from November to February when thetemperature starts to drop and influenza starts to circulate. In 2020, in particular, we
worked with the Mexican Social Insurance Agency to ensure that we had enoughvaccines to suppress influenza whose symptoms are similar to those of COVID-19.
In February 2020 and January 2021, we delivered a flu vaccination campaign toencourage our employees and their family to be vaccinated and be protected against
respiratory diseases.

33

F-TECH CSR REPORT 2021

Global Initiatives

China   

  

 

At F-tech Zhongshan, we use 16 smoke exhaust fans. As shown in Figure 1, as eachexhaust fan served multiple lines (welding cells), it had to be kept operated even whensome of the production lines were shut down for a break, repairs or production
adjustment. Keeping the fans operated like this had not only required additional
electricity but also decreased the air conditioning efficiency within the factory.
So, we addressed this situation by installing a shutter on the duct of each welding
cell which automatically opens or closes according to the operational condition (SeeFigure 2). In addition, we installed an inverter on each exhaust fan to allow the shutter
signals of operating cells to be sent back to the PLC on each fan, in turn adjusting thefrequency of exhaust fans and reducing their electricity use.
Thanks to this improvement, the electricity consumption per smoke exhaust fan
was reduced by 87,000 kWh per year, while a further 141,000 kWh per year is expected       ­
to be reduced as a result of improved air conditioning efficiency. The total amount ofelectricity saved is expected to amount to 1.5337 million kWh per year, thereby saving
the costs by around RMB1.3038 million. (The installment of the shutter on all welding
cells was completed in February 2021)

    

    
In recent years, with the Chinese government introducing stricter laws andregulations regarding the environment, there has been an increasing demand forbusinesses to protect the environment. Today, in order to meet the requirements ofthe pollutant emission license for automobile manufacturers, plants generating
specific pollutants are required to install a web-controlled monitoring device on themain drain and track the levels of PH, COD and the outflowing amount of ammonia
nitrogen, phosphoric acid etc.
In response, our environmental office and our painting division worked together tointroduce the online monitoring system in June 2020. The online system is connectedto the environmental bureau of Dongxihu District through a network, allowing themto monitor our wastewater on a real time basis. The cost of the introduction of the newmonitoring system including its installation in the monitor room and thereconstruction of wastewater channels to meet the standardization requirements
amounted to 400,000 RMB in total.
Our wastewater is already connected to the city's sewer system and is discharged
into a river after being treated twice at the wastewater treatment center of Dongxihu
District. The levels of PH, COD, ammonia and nitrogen of our wastewater haveremained below the criteria since the installation of the monitoring system in October2020.



  

    

     
In FY2020, we addressed the development of safer chemical storage procedures asa priority.
The chemicals used by our company are limited both in variety and quantity.
However, they still need to be stored in accordance with the laws and regulations of
the country. To ensure compliance across the company, we launched the chemicalstorage improvement campaign. The chemical storage manager of each department
had meetings and decided to use the materials room on the first floor as a chemicalstorage room. We then renovated the room to comply with the applicable laws andregulations and developed procedures and management regulations. Thanks to these
efforts, all chemicals are now stored after being sorted based on their characteristics
and efficacy and used according to the rules.



F-TECH CSR REPORT 2021

34

Global Initiatives

Asia      

   

We reduced the CO2 emissions and costs related to our air treatment process by
replacing the conventional air compressor (using a wye-delta motor starter) with aninverter air compressor with a VFD motor starter and by increasing the size of the air
receiver tank from 2000 liters to 3000 liters.
Inverter air compressors use 50% less electricity while also minimizing thefluctuation of pressure. As a result, we expect an energy reduction of 234,300 kWh per
year, a cost reduction of Php16,663,530 per year and a CO2 emissions reduction of
149.15 tons per year. The investment of Php2,030,000 in the new compressor will berecovered in a year and three months.

     

  
We replaced 72 fluorescent lights in the office area to LED in accordance with the CO2Emissions Reduction Targets of the Group. As FR&DP is operated by two shift groups,
we require lighting 24 hours a day. The replacement of lighting resulted in a reductionof electricity use by as much as 500 kW per month, while ensuring a stable brightness.

  In the first six months following the outbreak of COVID-19, we kept the number ofcases at zero by ensuring the compliance to laws and regulations and by introducing
our own guidelines on health. Although 31% of our employees suffered from the virus
in the following months, we could minimize the transmission by taking stricter
measures to control and prevent the spread of infection. In particular, we have strictly
enforced the wearing of face masks and face shields, regular disinfection procedures
and the maintenance of physical distance.

 
The Philippines are hit by an average of 9 tropical storms each year. In November
2020, Category 4-equivalent Typhoon Ulysees (Vamco) struck northern Luzon Island,causing serious damages in some states. In response to this disaster, our employees
voluntarily launched a campaign to raise funds and donations of essential goods. The
money and goods raised in collaboration with locators of Laguna Technopark were
donated to the Philippine Red Cross.

               ­   
In FY2020, our research on surrounding schools revealed that an elementary schoolin Uthai, Ayutthaya, had several issues including the lack of daily necessities, a broken
national flag pole stand and broken drainage channels. We provided the children witha better and safer learning environment by offering daily necessities and by
undertaking the necessary repairs.
We also provided the children with information on how to sort and recycle garbage
to raise the environmental awareness of those who will lead the country in future andhelp them practice what they learned at home.
In addition, we have continued other CSR activities including the donation of sparecalendars and lost lottery tickets, blood donation and collection of aluminum can pulltabs.

     ­        
During FY2020, we were forced to minimize our social contribution activities due tothe social activity restrictions in response to COVID-19. While the restrictions are still inplace, governments and businesses across the country have started their efforts toachieve a "safe, healthy and productive society".
Against this background, we made a donation to orphanages that care for those
who are 5 years old or under and were facing new challenges during the corona crisis.
At FTI, we are committed to continuing and focusing on our local contribution going
forward.

35

F-TECH CSR REPORT 2021

Our Response to the New Coronavirus Pandemic
At F-tech Group, we are committed to preventing the infection of our employees andtheir family by placing human life as our top priority. We are also committed to fulfilling
our responsibility as a supplier forming part of supply chains.
As we continue to live "with COVID-19" in a restrictive living and economic
environment, we are required to seek a new lifestyle as part of our efforts to prevent
transmission. F-tech Group will continue to address the new coronavirus pandemic byadjusting the way we produce, work and perform.

Covid-Related Procedures to Be Followed Across the Group
When one or more employees are tested positive
for or showing any symptoms of Covid-19:
・Any employee who(1) has a temperature higher than 37.5℃,(2) feels tired or have trouble breathing, or(3) has lost or had a change in their sense of smell or taste or
any employee who lives with those with the above
symptoms must report to his/her supervisor and must
self-isolate at home.
・When one or more employees have been tested positive
for Covid, track down all their recent activities and reportto the local public health center. Identify those who havebeen in close contact with and objects touched by aninfected person and disinfect them as required.
・Those who have been in close contact with an infected
person must take a PCR test in accordance with thecriteria and instructions of the local public health center,and if tested negative, must self-isolate for 14 days fromthe day they were in contact with the infected person andwork from home until they are found unlikely to be
infected.

Measures to Prevent the Spread of Infection
Under the declaration of a state of emergency, we arecommitted to adopting and implementing therecommendations of the conference of experts.

Measures to avoid the three C's:
・Work from home; Minimize physical contact between

employees through the implementation of shift work
・Ban non-essential outings and movements
・Encourage those who commute on public transportation
to cycle to work, change commuting times or work fromhome・Change the layout of the office and the dining room
・Make the most use of online meeting tools

General Requirements:
・Wear face masks; Wash hands as often as possible; Sanitize
and disinfect; ventilate rooms regularly

Development of Guidelines:
・We have documented the above procedures into

Guidelines for Addressing the New Coronavirus Disease toencourage appropriate response by our employees

Our Operational Activities

・With regard to the production, we promoted thedevelopment of procurement processes andcomplemetation system among plants to support
production to improve the working conditions at the
production sites while fulfilling our responsibility as aparts supplier.
・With regard to the way we work, we responded to thedeclaration of a state of emergency by making those whowork in back-office departments work from home as wellas through the implementation shift work. Since these
new working arrangements have proven to be
productive, we introduced flextime that had only been
available in some departments in other departments, inturn developing an ideal working environment for bothlabor and management.
・With regard to the performance, while our sales are
significantly affected by COVID-19, we will aim to achieve
the following three goals:
1. Development of a cost structure that can ensure profit`
2. Reduction of time and cost using the zero-prototype
development method that completes withdesigning/analyzing.
3. Development of new businesses in addition to the
manufacturing of chassis suspension

The Effect and Progress of Remote Work
Since the issuance of the declaration of a state of
emergency, our employees have worked from home on atemporary basis to avoid contact with other employees.
Out of about 850 employees, around 380 in a back-officeposition were instructed to work from home to keep ourdaily attendance rate below the government's guideline. As
we developed an IT environment and operational processes
suitable for remote work prior to its implementation,
working remotely from home has the progress of ouroperations.
We believe that redesigning our working environment inresponse to COVID-19 will in turn lead to the developmentof a workplace that is more comfortable for both theCompany and employees.

F-TECH CSR REPORT 2021

36

Data Collection

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37

F-TECH CSR REPORT 2021

エフテック

ＣＳＲ報告書２０２１

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. 2021
Next Issue : Scheduled for release in September, 2022