Towards the Realization of a Resource-Recycling Society

CSR REPORT 2014
＊This report uses forest-certified paper and eco-friendly soy ink.

DOWA’s CSR
The DOWA group conducts business based on thecorporate philosophy of:, “Through our deploying
business on our earth, we seek to contribute to ahigh standard of living and the emergence of a
resource-recycling society.”〈Editorial Line〉
DOWA CSR Report 2014 reports the CSR philosophy and the major businessactivities of the DOWA group of the year in an easy-to-understand way to all
stakeholders.
(1) Areas covered in this report■Target organizations
DOWA Holdings and subsidiaries (both in Japan and other countries) that areincluded in our consolidated accounting are selected in these reports. Data on
some of our efforts are only associated to DOWA Holdings and other major
companies of the group.
Our overseas subsidiaries of Kunshan Dowa Thermo Furnace Co., Ltd,JIANGXI DOWA ENVIRONMENTAL MANAGEMENT CO., LTD., DOWA
ECO-SYSTEM SINGAPORE PTE. LTD was added to the data collected forthis report in 2014.
■Target areas to report
The report consists of four areas of DOWA’s CSR policies: Governance, Safety,
Environment, and Society. It covers each of these policies, current implementation
status of its major issues and the activities by the above-mentioned organizations.

1■Target audience
This report is intended for our customers, stockholders, investors, clients,
local communities, researchers, students, employees, rating & evaluation
agencies, governmental agencies, NGO’s, NPO’s and all stakeholders of the
DOWA group’s business activities.
■Target period
The report mainly covers activities conducted from April 1, 2013 until March 31,
2014 (Fiscal year (hereinafter referred to as “FY”) of 2013), partially including
the past background and previous activities to provide more accurate information.
■Reference guidelines
The UN Global Compact (UN GC)
ISO 26000
Environmental Reporting Guidelines 2012 by Ministry of the Environment(Government of Japan)(2) Publishing of a web version
This report highlights and reports CSR activities of the DOWA group, focusing onsome important points, to provide an overview of those activities in anDOWA group is committed to conducting business based on the
CSR activities, considering the future of our earth and society tocontribute to resolving social problems through business activities.
We are also promoting a variety of CSR activities to increasetransparency of our business and gain trust from our stakeholders.

Contents

01 DOWA’s CSR
01 Editorial Line

03 CSR Management

03 Message from the Management
05 About the DOWA group
07 Our Operating Companies
DOWA ECO-SYSTEMDOWA METALS & MINING
DOWA ELECTRONICS MATERIALSDOWA METALTECH
DOWA THERMOTECH

17 DOWA’s Business and Social Issues
19 CSR Policy and Planeasy-to-understand way. For more details, visit our website (to be posted in2014).
Check our website for detailed information about the topics withmark. If
errors are found after publication of the CSR report, they will be reported on our
website with errata notes.
(3) Basic information■Publication Date June 2014
■Due Publication Date of the Next Report June 2015
■Responsible Department CSR Department, DOWA Holdings, Co., Ltd.
■URL
http://www.dowa.co.jp (in Japanese)
http://www.dowa.co.jp/index_e.html (in English)■Contact
CSR Department, DOWA Holdings, Co., Ltd.
22nd Floor, Akihabara UDX Bldg, 4-14-1
Sotokanda, Chiyoda-ku, Tokyo 101-0021 JAPAN
Phone: (+81) 3-6847-1104 / Fax: (+81) 3-6847-1277
E-mail address: info_dowa@dowa.co.jp

21 DOWA’s Initiatives on each CSR field
21 Governance
27 Safety
31 Environment
39 Society

47 Voice from Stakeholders
47 Questionnaire Results
48 Third Party Opinion2

This year marks the one hundred andthirtieth year since our establishment in
1884. We have evolved into a unique
resource-recycling company consistingof five core business areas, responding
agilely to wildly fluctuating global
market. We continue to be committed
to resolving social problems throughour business activities in this rapidlychanging global market.
President and representative director,
DOWA HOLDINGS, Co., Ltd.
Masao Yamada

3Message from the Management
Contributing to Resolving
Problems of Global Society throughBusiness Activities
Responding to Changes in order toContinue Growth
While there is some indication of economic recovery in
US and Europe, the growth rate of economy in emerging
nations such as China and India are slowing down, although it continues to grow. Japanese economy showsa recovery trend as a result of correction of the extreme
yen appreciation and government economic policies. As
for business environment around the DOWA group, thedemand for products for automobiles, smart phones andrenewable energy is increasing, while the metal price isweakening in general and the general weakness of theyen is continuing. We have steadily implemented various
measures for improving productivity and increasing thenumber of orders along the Mid-term Plan V. As a result
our revenue and profit increased in 2013 and continued to
expand business. Responding to rapidly changing external
environment, we endeavor to continue our business in a
steady but agile manner.
Our group celebrates the one hundred and thirtiethanniversary of incorporation. Our mining, refining andsmelting business in Akita has evolved into a unique
resource-recycling company consisting of five corebusiness areas, through diversification, selection andconcentration since the 1980s, responding to rapidlychanging business environment. We will continue ourefforts, capitalizing on our long cherished experience.

Confirming that Safety is the Top Priority
DOWA’s CSR policies focus on four major areas: Governance, Safety, Environment and Society. All employees
voluntarily take part in safety activities to promote risk
management and corporate-wide safety education to improve
the level of health and safety in the workplace, based on
our basic philosophy of, “Safety is the top priority.” In 2012
we started a project across the group to promote safety (seeP.28), which is a joint initiative across businesses in eachregion. This project was aimed at strengthening promotionof excellent safety initiatives horizontally across the group
to improve the safety level of the entire DOWA group. Thisinitiative also started in 2013 in DOWA’s companies outsideof Japan.
There are no shortcuts to safety. Each employee, including the management, will confirm that safety is the
top priority again to continue this initiative in which all
employees participate.

Enhancement of CSR across the Supply Chain
Demand increases for promoting CSR activities acrossthe supply chain as the DOWA group deploys business ona global basis. We revised our CSR procurement policy,
based on universal rules of the UN Global Compact
guidelines, considering human rights, work safety andconservation of environment. Promoting responsible procurement of minerals is a very important issue for us as weare engaged in handling of metal products. We announced
our policy on conflict-free minerals in 2012 and we havebuilt a management system to examine usage status andsources of raw materials of DOWA. We are also committed
to obtaining certification by third parties for conflict-freeminerals.
These initiatives are all based on close cooperation withour clients. We will make every effort to enhance risk
management, monitoring and education across the groupand promote CSR activities across the supply chain so that
our customers can safely use our products without anxiety.
This report conveys our initiatives for CSR to all stakeholders as well as to make each and every employee to beaware and thoughtful of CSR. We would be very grateful
if you could send your opinions and comments on thisreport. It will be very helpful for us to resolve social issues
through our business activities.

4

About DOWA group
Our resource-recycling business consists of five core business areas deployed globally.

The DOWA Group is engaged in our Nonferrous Metals
business where we extract useful metals from natural
resources. In our Metal Processing and Heat Treatment
business we add value to the extracted metals. In our Electronic Materials business we further improve the functionsof metal materials and, in our Environmental Management& Recycling business we detoxify waste, separate andcollect metals from waste.
We are committed to resolving social problems such as
global issues of the environment and resources throughour unique resource-recycling business—from productionof non-ferrous metals, highly value-added products and totheir recycling.

Corporate Profile● NameDOWA Holdings, Co., Ltd.

● Incorporated

March 11, 1937

● Head Office22nd Floor, Akihabara UDX Bldg, 4-14-1
Sotokanda, Chiyoda-ku, Tokyo 101-0021 JAPAN● President and Representative Director

Masao Yamada● Common Stock

36,437 million yen● Employees

Approximately 5,700 persons

Our Business Locations

DOWA ECO-SYSTEM CO., LTD.
DOWA METALS & MINING CO., LTD.
DOWA METALTECH CO., LTD.
DOWA THERMOTECH CO., LTD.
DOWA HOLDINGS CO., LTD.

5

2013 Business Results
In 2013, we implemented a variety of measures for improving
productivity and increasing orders including sales expansionof new products and investment in equipment and facilities, as
demand for automobiles, multi-functional mobile devices andrenewable energy sources has increased. Outside Japan, we
enhanced our competitiveness in expanding overseas markets

Change of Sales and Operating Profit
Consolidated sales(0.1 billion yen)
5,000

3,798

4,000

3,000

0

3,924

4,193

3,074

4,439

400

350
272

233

2,000

1,000

Consolidated operating profit(0.1 billion)
500

200

209

138

2009

300

100

2010

2011

Sales

2012

2013

by expanding waste disposal business in South East Asia andthe starting up of a heat treatment business unit in Indonesia.
Yen devaluation favorably contributed to our non-ferrous metals
business, resulting in consolidated net sales of ¥443,985 million,
6% increase, consolidated net operating profit of ¥31,794 million,
29% increase and consolidated current income of ¥35,055 million,
29% increase from the previous year.

Operating Profit per Business Unit
Heat treatment
business unit
6%
Metal Processing
business
16%

Electronic Materials
business
22%

Other 1%

Operatingprofit in the FYof 2013
3.5 billion yen

Environment &Recycling business
28%

Nonferrous Metals
business
27%(FY)

Operating profit

DOWA ECO-SYSTEM Co., Ltd.
DOWA METALS & MINING Co., Ltd.
DOWA ELECTRONICS MATERIALS Co., Ltd.
DOWA METALTECH Co., Ltd.
DOWA THERMOTECH Co., Ltd.
DOWA HOLDINGS Co., Ltd.

6

Waste treatment plant

Soil remediation work

Dowa Environmental Management Co., Ltd in Suzhou, China

Mobile phones as recycling materials

SilverFinal disposal site

Home appliance recycling plant

DOWA
ECO-SYSTEMDOWA ECO-SYSTEM
Environment and recycling business

DOWA ECO-SYSTEM has been engaged in environmental and recycling business since the 1970s, providing a complete
service from delivery to final disposal in the fields of waste treatment, soil remediation and recycling. We started business related
to environment outside of Japan earlier than any other Japanese companies focusing on Asia. This contributed to environmental
improvement in Asia and making DOWA a leader among Japanese companies engaged in environment and recycling with ourcutting edge technologies.

Business Fields
Waste disposal
business

7

Soil remediation
business

Main Products and Services
Recycling business

Waste treatment and disposal, managed final waste treatment,
soil remediation, recycling of metals, home appliances andautomobiles, environment-related consulting and cargotransportation, etc.

M

〈Introduction of One of the Main Plants of DOWA Eco-system〉

Ten Years of Reliability and Achievements
as the First Japanese Recycling Plant
We have recovered a cumulative amount of approximately 3,800 kg of gold throughour recycling business.
We are committed to achieving both resource-recycling and conservation ofenvironment in China as an advanced business model with cutting-edge recycling
and environment-related technologies.

VO I C E

Dowa Environmental Management Co., Ltd.
Address: No.28 Sanlian Street, Suzhou New District,
Jiangsu 215129 CHINA
Employees: 76 (As of March 31, 2014)〈Hydro-metallurgic andpyro-metallurgical processing plant〉

Wu Chunfeng,
Assistant Division Manager

Contributing to Resolving Social Issues
in China by Serving as an
Environmental Business Model Company
China faces lack of resources as a result of
rapid economic growth, while increasing wastes
and environmental pollution are becoming
major social issues. We have been committed toactively reducing environmental burdens byintroducing treatment facilities compliant withexhaust gases and effluent regulations including
dioxin. These are aimed at achieving both
effective use of resources and the conservationof environment.
In 2010 we started up the first recycling
model plant in China that has three functions:home appliance recycling, hydro-metallurgic
processing and pyro-metallurgical processing.
This plant enabled not only metal recyclingfrom a variety of types of materials, but alsoenabled pyro-metallurgical processing of CFC
from home appliances and effluent fromhydro-metallurgic processing. It has evolved
into an ideal plant for optimal processing
through combination of these processes. Since
Used home appliances
Office automation devices andother electronic appliancesHome appliance plant

Disassembling, separationand shredding

CopperElectronic parts
Aluminum
Refrigerant CFC
Iron
Heat insulating CFC
ResinMineral oil

there is no recycling plant in China that canrecycle and process simultaneously, we accept
requests from seven other recycling plants in
Suzhou, thereby contributing to reduction ofenvironmental load in China.

Safety Initiatives by the Three ChineseHome Appliance Companies of DOWA

The Act on Management of Recovery andTreatment of Disposed Home Electric andElectronic Appliances was enacted in China in
2011. This act requires recycling of five kinds
home electric and electronic appliances; TV sets,
refrigerators, washing machines, air conditioners
and PCs). Now DOWA group has deployed home
appliance recycling plants also in Tianjin and
Jiangxi. These three companies have started up
the Chinese Home Electric and Electronic
Appliance Association and are now jointly
promoting workplace safety, one of importantmeasures of our CSR policy. Local staff also
participated in the association to review work
standards, select appropriate
protective gear and conduct safety
Electronic scrap
Electronic scrap
patrols. Education and training
containing copper
programs are put in place andGold quality
High
Lowselected local members are sent toconcentration
concentration
DOWA plants in Japan to raise theirHydro-metallurgic
Pyro-metallurgicalprocess plant
processing plantsafety awareness.
Incineration,
Peeling, electrolyzation
thermal decomposition
and refinement
As the first recycling plant, we
would like to play a leading role not
Residue
Salt
Pure gold Waste effluent
containing copper
Scrap after peeling
only with technologies but alsowith safety, capitalizing on our
accumulated know-how and
Final
Recyclingtechnologies
treatment

2 0 1 3 To p ic

In the pyro-metallurgical processing plant, we
contribute to environmental conservation of local
communities by properly incinerating hazardous
wastes. We also reduce amount of TV substrates
from home appliance plants through incineration
to make them materials for copper smelting.
Those substrates have parts that contain valuable
elements other than copper. Additional operationof a pre-treatment process has enabled us torecover elements much more than could havebeen by traditional incineration methods which
also contributes to increased revenue. In thehydro-metallurgical processing plant, we focus on
our gold washing and recovering business. We
collect gold from LED and other electronic parts
manufacturers’ jigs that contain gold and contribute to increasing amount of recovered gold.

〈Home appliance disassembling plant〉

Tan Zunsheng,
Assistant Division Manager

I am now in charge of disassembling plant ofused home appliances. Our monthly goal is todisassemble 50,000 units. The number of items
that legally require disassembling will eventually
increase from present five to fourteen categories.
We will prepare a proper disassembling procedure, taking safety into consideration.
The temperature goes up close to 40 ℃ insummer in Suzhou. I am involved in improving
work environment during this hot season. We
are also considering to achieve both safety andefficiency for improvement of TV set disassembling lines.

s

The Tenth Anniversaryof Foundation andOpening up of our
Exhibition to Pubic

In 2013 we celebrated the tenth anniversary of foundation our facility. As amodel recycling company in China, we have accepted many visitors including
VIPs from the political and business worlds. Celebrating the tenth anniversary,
we renewed our exhibition. We would like to use this exhibition space as a
training facility in the Technical and Educational Center in Suzhou New District.
The exhibition has a floor focusing recycling processing with videos, instructive
panels and full-sized home appliances exhibition. The exhibit is designed for
visitors to learn importance of resources and important aspects of recycling through the displays showing our environmental
measures. As a cutting-edge company that co-exists with local communities, we would like to make full use of this exhibitionin order to show the way of resource-recycling and contribute to raising environmental awareness of local people.

8

TSL furnace

Zinc electrolyzation plantIndiumKosaka Smelting & Reﬁning Co., Ltd.

Gold

Zinc processing plant

Electrolytic copper

DOWA
METALS&MINING
DOWA METALS & MINING
Refining and smelting business

DOWA Metals & Mining conducts refining and smelting, which is the core focus of the DOWA group. Metals & Mining has
established a recycling, refining and smelting complex consisting of a network of several refining and smelting plants, based on
our long cultivated technologies for mining, smelting and refining. Metals & Mining contributes to building a resource-recycling
society through recycling, refining and smelting of twenty-some metals recovered from a wide variety of raw materials.

Business Fields
Precious metal andcopper business Rare metal business

9

Main Products and Services
Zinc businessGold, silver, copper, zinc, zinc alloy, lead, platinum, palladium,
indium, gallium, germanium, tin, antimony, crude nickel sulfate,bismuth, tellurium, sulfate, etc.

〈Introduction of one of the Main Plants of DOWA Metals and Mining〉

A World-leading Combined Recycling, Refining
and Smelting Plant that Handles Diversified Raw Materials
We have established an operation system with concerted efforts to tackle with anextensive transformation to shift to a refining and smelting process focusing on
recycling materials.

Kosaka Smelting & Refining Co., Ltd
Address: 60-1 Otarube, Kosakakouzan, Kosaka-machi,
Kazuno-gun, Akita 017-0202
Employees: 314 (As of March 31, 2014)

VOI CE

Advanced Combined Recycling,
Refining and Smelting Process〈Copper Smelting Department〉

Takehiro Muramatsu,
Precious Metal Division

Kosaka Refining and Smelting changed its
method from a blast furnace and flash smelter
method to the TSL (Top Submerged Lance)
furnace method in 2008. It was an extensive
transformation that had not been accomplished
before in Japan or in anywhere else in theworld. Kosaka not only changed the process but
also the materials from mined minerals to
mainly recycled materials. The DOWA group
overcame various problems with concerted
efforts and was able to establish a safe
operation. To be able to handle a wide variety ofmaterials including recycled ones, Kosaka
started to collect crude nickel sulfate and tin in
the fiscal year of 2011 and is now increasing thenumber of recovered metals. In 2013, Kosaka
succeeded in increasing production of silver
through further improvement of silver refining
and smelting process.

G
Silver

2 0 1 3 To p ic

Employees on our production site have been
making concerted efforts to achieve improvements such as productivity of the material
processing furnaces in the precious metal
plants to increase silver production. As a result,material processing throughput increased 1.5
times, contributing to our being the top silver
producer in Japan.
Although there are still many challenges inconnection with shifting to recycled materials
including diversification of the composition of
raw materials, we are steadily working to overcome the problems.

Conflict-free Mineral Refining andSmelting Plant
Kosaka Refining and Smelting carries out its
social responsibility to a full extent as a company
to supply non-ferrous metals at the upper streamof the supply chain. Kosaka was the first Japanesecompany that obtained the CFS (Conflict Free
Smelter) (See P. 22) certificate from EICC/GeSI
in 2012 and obtained the renewed certificate in2013. Kosaka is committed to further conducting
risk management of conflict minerals, incooperation with suppliers of mineral andrecycled materials, not only for its direct
customers we supply gold bullion but also for
end-user companies of gold at the lower end of
the supply chain.

〈Production Control Department〉

Tetsuro Tokumoto,
Production Control Division

Kosaka Smelting and Refining has transformed its usage of raw materials from mined
minerals to recycled materials in connection withenvironment changes to produce non-ferrous
metal bullion. To respond now to these changes
and carry out our responsibilities appropriate to
the times, Kosaka obtained the CFS certificate to
be a responsible manufacturer.
We will continue to respond to environmental
and social needs agilely and flexibly to makereliable products.

sDonation of
Locomotives andStation Building of Old
Kosaka Railways to
Kosaka Town

Kosaka Railways used to be the main means of transportation of minerals
and sulfuric acid when Kosaka Smelting and Refining used the flash
smelter. It ceased the operation in 2009. Kosaka assigned diesel
locomotives, old station building and railway site of Kosaka Railways free ofcharge to Kosaka town in March 2014, in response to the request from local
communities to make use of locomotives and Russel snowplows as tourism
resources. The town will use these resources to show its industrial heritage
and there are plans to build a railway theme park focusing on customer
experiences of operating locomotives themselves as well as exhibitions.

10Carrier powder plant

LED

Compound semiconductor wafer

DOWA F-Tec Co., Ltd.

Silver powder

Nitride plant

Deep ultraviolet LED

DOWA
ELECTRONICS
MATERIALS
DOWA ELECTRONICS MATERIALSElectronic materials business

DOWA Electronics Materials started its business through development of new applications of diversified metal by-productsthat were collected in mining, refining and smelting business and making them into very fine powders with very high purity.
Electronics Materials is now developing them for advanced electronic appliances, providing materials for semiconductors,
conductive and magnetic materials that require high performance and function. DOWA accounts for a large share of thesematerials in the world.

11

Business Fields

Main Products and Services

Semiconductor Electronic materials Functional materials
businessbusinessbusiness

Highly pure gallium, indium, compound semiconductor wafers,
LED, silver powder, copper powder, silver oxide, metal powder,
Carrier powder, ferrite powder, etc.

〈Introduction of one of Main Plants of DOWA Electronics〉

World Top Magnetic Property
Using Ferrite Powder for Bonding
Magnetic ferrite is indispensable for manufacture of automobile and electric appliances.
We are leading the world by deploying advanced technologies gained in our long historyof making ferrite powder. We respond to the global needs for high performance products
and innovative applications with our world’s top technology of ferrite for bonding.

VOI CE

DOWA F-Tec Co., Ltd.
Address: 1045, Kichigahara, Misaki-cho, Kume-gun, Okayama 708-1523
Employees: 36 (As of March 31, 2014)〈Development Department〉

Yasunobu Mishima,
Department Manager

Contributing to Automobile Environmental
Performance with Its Proprietary Technology
DOWA F-Tec uses hard ferrite powders forbonding magnets suitable for use mixed withresin. The powders are widely used for magnet
rollers of printers and copying machines and formagnets for motor sensors of automobiles andhome appliances. They have more advantages
compared to the universally used sinteredmagnets in that it has:
1. More precise dimensioning
2. More flexible shaping
3. Hardly cracked or chipped
These properties enables them for use in anelectrically driven water pump that is used forcooling engines of eco-friendly cars such as
hybrid automobiles. Casting into one form
enables to reduce the number and volume ofpump parts to achieve a smaller size and lessnoise. Smaller size resulted in better fuelconsumption and reduction of CO2. Many motors
and sensors are installed in automobiles for highenvironmental performance and comfort. F-Tec
will continue to contribute to developing comfort
and environmental performance through ferrite
technologies.

S
2 0 1 3 To p ic

Our Challenge for Energy Reduction
through Heat Recovery System of Our Own
Ferrite powders are made by heating ferricoxide and then making them react with alkali
earth metals. This process requires a large amountof fossil fuel, which causes a major problem interms of energy saving and reduction of CO2. To
solve this problem, F-Tec has developed its own
heat recovery system to recover heat to the
maximum extent.
There were a variety of problems to solve at
the start of development; however after repeatedtrial productions and improvements F-Tec started
the full operation in the summer of 2013. The
system recovers exhaust heat made in the processof treating raw materials under high temperature.
This heat is used to preheat combustion air
required in the other process, resulting in less fuelconsumption. It is also used to dry the sedimentrecovered from effluent and this action
contributed to reducing wastes from production.
Combination of F-Tec’ s creative and innovativemind-set and manufacturing technologies enabledenergy saving and reduction of CO2.

Ferrite powders developed and manufactured by F-Tec are only used for compound thatis mixed with resin. Developing ferrite powders with high flow properties using particle
size distribution and particle shape control
technologies enabled dense filling and highorientation (higher magnetic intensity broughtby aligning orientations of crystal faces)
improved by approximately 20%. These powders are now being used in the fields where
only ferrite sintered magnets and rare earthmagnets can be used. We will try to widen thepossibility of ferrite powders through continuous improvement.

〈Production Department〉

Hideki Katayama,
Department Manager

A large amount of heat and electricity are used
for reaction and crushing in the production processof ferrite powders. Not only the cost but also theenvironmental burdens could change, depending
on how effectively energy is used. In addition to
the improvements in heat recovery we made lastyear, this year we will try to improve our quality
control system by further achieving energy
savings. to meet the increasingly rigorous demands
from customers. We would like to remain a company that can contribute to society, by manufacturing world-leading products both in cost and quality
while reducing environmental burdens.

sRisk Assessment
Initiative

DOWA F-Tec is committed to improving workplace environment by ourrisk assessment method of sampling and improving hazardous facilities
and equipment, and endeavors to achieve employees’ safety. In June2013 F-Tec’s “Measures Preventing from Being Caught in and Stuck inwhen Demineralized Pellets are Recovered and Returned from Bucket
Conveyers” was awarded as the best measure among 69 applicants inthe DOWA group’s risk assessment presentation. We will continue tomake improvements, aimed at achieving safety workplace without any
accident or disaster.

12

Copper alloy strips

Silver plating facilities

Metal ceramic PCB

DOWA METALTECH THAILAND

Forged products from brass bar

Products plated with precious metals

Metal rolling equipment

DOWA
METALTECHDOWA METALTECH
Metal processing business

DOWA METALTECH provides high quality copper alloy, plated products and metal ceramic PCBs focusing on automobileand electronic parts. Metaltech is developing cutting-edge technologies and products while watching over what our customers
need as well as keeping an eye on market trends related to new materials and electroplated coating. Metaltech has established a
global supply system that can respond to market needs on a timely basis by expanding business bases focusing in Asia.

Business Fields
Metal processing
business

13

Plating business

Main Products and Services
PCB business

Copper, brass, copper alloy strip, nickel alloy strip, brass bar,forged product from brass, products plated with precious metals,
metal ceramic PCB, etc.

〈Introduction of one of Main Plants of DOWA Metaltech〉

Diversified Plating Lines,
Responding to Wide Range of Needs
In 2006 DOWA METLTECH participated in Thai market where Asian electric,
electronic and automobile manufacturers gather. As a wide-ranging manufacturer ofmetal solutions, METALTECH established an agilely responsive, local production
and supplying system, with wide variety of silver, nickel and tin plating lines.

VOI CE

DOWA METALTECH (THAILAND) CO., LTD.
Address: Gateway city Industrial Estate, Chachoengsao Province, Thailand
Employees: 66 (As of March 31, 2014)〈Supervisor in Charge of
Production〉

Pattaya Krongwaeng

Supporting for Globalization ofJapanese Companies

lighting system and also use of natural ventilationand light.

DOWA METALTEC (THAILAND) is locatedin Gateway city Industrial Estate, Chachoengsao
Province, processes coil-shaped copper andcopper alloy called copper and copper alloy strip
and provide silver, nickel and tin to local Japanese
automobile parts manufacturers. Metaltec
Thailand has the cutting-edge equipment andfacilities equivalent to those in Japan, Metaltec
Thailand supports Japanese companies inThailand through promoting local procurement
by offering the same level of mass-production
quality found in Japan. Imported copper materials
from companies within the DOWA group ensuresconsistent quality from raw material to the end
plated products.
Metaltech Thailand will expand its plant andincrease its equipment and facilities, responding
to Asian automobile markets that are expected tohave continuous growth. The new plant will betwice as large as the present one and employ
environmentally-friendly design, with all LED

Building a Resource-Recycling
System on a Global Basis

H

Metaltech Thailand has established a recycling
flow of metal scrap generated in the production
process utilizing the network of the DOWA
group. Precious metals for plating are recoveredin the smelting and refining plants in Singapore
and Japan, while copper is recovered as basematerial in Dowa Metal in Shizuoka Prefecture
and used again in Metaltech Thailand as raw
material. This wide-range recovery systemcovering Thailand, Singapore and Japan is thestrength of the DOWA group that conducts its
business on a global basis.

Metaltech Thailand reports to Thai Government every year on traceability from transportation to transshipment, delivery to plants and each
recycling process clearly and promotes recycling
under properly managed recycling system.

2 0 1 3 To p ic

I am responsible for the line for precious metal
plating where copper strips are plated with silverand nickel. As a supervisor, I handle any abnormal conditions that occur in the process for quality improvement. For example, we added a newequipment that has a separate mechanism fromthe existing drying facility and reduced in-process
losses. This enabled us to achieve zero defects
related to insufficient drying that used to occur
after the plating process. I will handle the expansion of existing lines or starting up of new lines,
capitalizing on my experience.

〈Safety Officer in Charge ofEnvironment〉

Napaporn Bootamkha

Promoting “Reduce, Reuse and Recycle”
systematically is an important philosophy of ourcompany that aims at being a sustainable andeco-friendly company. For example, as part ofcustomer service, we buy back copper and brass
scrap for recycling of the material that we originally sold to them. Proper preparation of documents and permits for this purpose is part of environmental conservation and at the same timeincreases the trust from customers. It is one of ourenvironmental initiatives based on our business
policy: “to comply with laws, continue to saveenergy and promote 3R’s activities as part ofenvironmental conservation and aim at an
eco-friendly company.”s

Employing Intern
Students from a Local
University

DOWA METALTECH (THAILAND) puts in place a paid internship program and accepts
several intern students from a local university (Rajabhat Rajanagarindra University) in
Chachoengsao every year. We accepted three students in 2013 and they experienced
on-the-job training for three years in the machine maintenance department and accounts
department. We employed intern students in past and some of them are still working in
the maintenance department DOWA stays rooted deep in local communities and wework together on developing local communities. We are committed to creating
employment and improving nurturing human resources, aimed at to be a workplace
where local staff want to work for a long time.

14

Heat treat furnace

Heat treated products

Plasma nitriding treated products

CEMM Co., Ltd.

Heat treat furnace

Heat treatment process

Heat treated products

DOWA
THERMOTECHDOWA THERMOTECHHeat treatment business

DOWA THERMOTECH provides the top notch service in Japan to manufacture and process industrial furnaces for both size and quality.
THERMOTECH is a pioneer of heat treatment technology that is indispensable for improving durability of metal parts. THERMOTECH
promotes development of competitive and productive heat treatment furnaces and new surface treatment technologies in the industrial
furnace business. In the heat treatment and processing business we aim at being an integrated global heat treatment manufacturer, armed
with cutting-edge technologies including carbonizing heat treatment, and we actively promote worldwide deployment.

Business Fields
Heat treatment andprocessing business

15

Industrial furnace business

Main Products and Services
Heat treatments, surface treatment, designing, manufacturing,
selling and maintaining heat treatment equipment and facilities
and ancillary equipment

〈Introduction to one of the Main Plants of DOWA Thermotech〉

Top Class Plasma
Nitriding Processing in Japan
CEMM has established a dominant place for its diversified heat treatment lineup in
Nagoya, the center of heat treatment since 1956. This heat treatment lineup includes
proprietary plasma nitriding treatment. After becoming the member of the DOWA groupin 2006, CEMM plays a leading role of the DOWA heat processing business.
CEMM Co., Ltd.

VOI CE

Address: 19-1, Ukishima-cho, Miizuho-ku,
Nagoya-shi, Nagoya 467-0854
Employees: 98 (As of March 31, 2014)

Focusing on Plasma Nitriding
Treatment
CEMM succeeded in developing the plasma
nitriding treatment in 1974 and started to offer
the treatment services to other companies using
the special furnace dedicated to the treatment.
As of now, DOWA THERMOTECH has the
only one plasma treatment plant: CEMM treats
5 million units a year focusing on automatictransmission parts for automobiles It is thelargest in Japan as a single treatment plant.
CEMM deploys all-around nitriding treatment,
responding to needs of the automotive industry
in terms of cost and scope of treatment.
Besides the automotive industry, uses range
from construction machines, industrial robots,ships and aviation. Proper systems are put inplace to respond to the various needs of a wide
range of industrial needs, including a variety ofheat treatments for aluminum alloys as well as
gas carbonizing treatment, in addition to plasma
nitriding treatment.

H
2 0 1 3 To p ic

〈Quality Control Department〉

Kotaro Kawamura

The Renewal of the plant have improved
Safety, Quality and Productivity
It has been already half a century since theestablishment of CEMM. CEMM had difficultyin coping fully with the current needs from industry due to aging of its plant buildings that wereconstructed thirty or forty years ago. Also thelayout of the plant buildings were not suitable forresponding to its current expanding business. In
2011, CEMM started the three-year renewal
project for major two plants (S2 plant for plasma
nitriding and N2 for gas carbonization) to ensure
a long lasting business base in the Chukyo metropolitan area centered on the city of Nagoya in
Aichi Prefecture.
In S2 Plant, sixteen plasma nitriding furnaces
used to spread over three different locations, but
in the renewal project, they will be integrated into
one place, to eliminate wasteful movement ofoperators and increase productivity throughenhanced equipment management. We will stop
lifting of products by cranes from the first floor to
the second floor for higher safety. In N2 Plant, alayout review enabled us to eliminate wastefulin-plant transportation, separate in-process products from finished products as well as heat treatment equipment from workplace. This improved
the workplace environment to a great extent andincreased safety, quality and productivity.

We reconstructed the plasma nitriding treatment and the carbonizing plants and reconstructed the aging buildings in our three-year
project. For smooth progressing of the reconstruction schedule, in our concerted efforts, we
succeeded in constructing buildings, proposing
process changes to our clients, checking quality and managing changes along with therequest simultaneously.
We will take the momentum from thisrenewal project to further improve quality andrespond to a wide range of industry needs.

〈Production Technology Department〉

Naruhiro Kono

I was mainly in charge of construction of S2
Plant in 2011 and of N2 Plant this time, for a
total of three years. We had to construct a newplant while continuing operation of the plant.
As a result we had to operate under a range ofrestrictions in terms of time and areas. The
work did not progress as planned; however, wewere able to complete the work successfully. I
would like to thank all concerned.
I am sure all the members of CEMM who
helped successful construction will be able toimprove their plants even further. I would liketo continue to make improvement together
with all the members.

s

Won Gold and SilverAwards at the QC
Activity Presentation
Conference in 2013

CEMM encourages employees to obtain qualifications such as heat
treatment specialist certificates and the like. CEMM has three female
heat treatment specialists (Class 1) and ranks No.1 in the DOWA
THERMOTECH in terms of the number of employees with specialist
certificates. Capitalizing on these qualifications and skills of employees,
CEMM aggressively conducts improvement activities. As a result,
CEMM team won the Gold and Silver awards last year at the QC activity presentation conference. CEMM also submitted thelargest number of proposals for the past four years. We will promote these activities, aimed at achieving better goals.

16DOWA’s Business and Social Issues
Recognizing Business Risks
The DOWA group addresses risk management to properly control risks that mayhinder realization of our business philosophy
and achieving our business plans: To carryout our social responsibilities and further
increase our sustainable corporate value.
The board of directors is mainly responsible
for handling business risks and the CSR

Business risks

Department is responsible for the CSR risks
in cooperation with other departments.

Global economic status

External risks that may affect business results, stock price and financial conditions are as
described to the right. For details, visit our website for the Annual Report of the DOWA group.

Metal exchange, currency exchange
Public regulation

http://www.dowa.co.jp/jp/ir/library_note.html
Stock price movement
Interest rate change
Disaster and /or electric power failure

CSR risks
The DOWA group started identifying
and reevaluating risks related to our concerns for the Environment, Society andGovernance to assure further sustainablebusiness activities. The CSR department
conducted the risk survey for each business
entity in the group to find out existingrisks, their measures and the possibility ofincrease of mid- and long-term risks. We
identified major risks for each business
entity and operating company. Major risks
identified in 2013 are as follows:○ Risk of overseas business establishment
In addition to the above mentioned
risks, crisis management and preventionof fraud in terms of governance are considered to be major risks in our businesses

outside of Japan.
We will identify every major risks ofeach company within the group, and planand implement their measures, based on
the results of the survey. We will strive toenhance and improve risk measures of eachcompany by monitoring the progress ofthe measures and conducting improvement
activities continuously.

Major Risks
AspectRisk

Measure

Legal

Changes in domestic laws, changes of regulations and standards, and collecting information
and responding to international regulations
including REACH rules/RoHS directives andlaws and regulations concerning businessestablishments and products as a whole.

Environmental
conservation

Air quality, water quality, noise, odor measures, chemical substance control, measures tofight against global warming, etc.

Safety, hygieneand healthzero accidents, zero fatality, measures formental health, etc.

Product Quality

Ensuring and improving quality, establishing aquality control system, etc.

Education

Employee education, preparation of a training
system, transferring knowledge, support forcareers, etc.

Large scale disaster

Prevention and reduction measures for fatality
from earthquakes, tsunami, floods, etc.

Environment

SocialGovernance17

Initiative to Resolve Social Issues through Business Activities
Initiative for “Sustainable
Utilization of Limited Metal
Resources”

Multidimensional Approach
to Resource-Recycling
Society

The purpose of social responsibility isdefined as “to contribute to sustainable
development” in the international standardof CSR, ISO 26000 in 2010. Society faces
diversified problems, including environment, water, food, poverty and the like.
“Effective utilization of resources” is themost relevant issue to DOWA, as utilizationof metal resources is the core of ourbusiness. It is also an important social issue.

Mineral ores are natural resource andwill be eventually exhausted if people
continue to use them. Resource-recycling
is an important solution; however it requires technologies and infrastructure toeffectively recover metals, and to properly
treat the hazardous substances and nonusable substances produced in the recovery process. This includes technical andeconomic issues which need to be solved

such as a proper establishment of a social
system which enables effective collectionof recycle materials, and cost and efforts
put into treatment of diverse materials. The
DOWA group conducts a wide range ofrecycling business in and outside Japan,
including precious metals, home appliances,cars and used small home appliances. In
addition to recycling, DOWA strives tosolve issues related to effective utilizationof resources, considering various aspects,
by making best use of its own waste fromits intermediate processing facilities, laboratories and transportation business units.

Examples of DOWA’s Approach to Social Issues
Promotion of Recycling

Reduction of Environmental
Load of Mines● Development of mines considering theconservation of natural environment● Consideration for biodiversity upon
examining and excavating mines

Improvement of Technology● Recovery of 22 elements● Support for recycling small amounts ofdiversified materials● Improvement of metal recovery
efficiency in mines outside of Japan● Highly effective recovery of traceelements

Social Issues concerning
Effective Utilization of Resources

・Depletion of resources
・Ubiquity of resources
・Environmental burden along with
development of mines and smelting
・Globalization of market, increasing
demand・Surge of mineral prices (increased
demand, market situation,
fluctuation of foreign exchange,etc.)・Reduction of waste

Securement of Rare Metals● Recovery of platinum from usedautomobile catalyst● Recovery of cerium from the abrasive
compound for glass

Overseas Expansion● Home appliance and precious metal
recycling in China● Precious metal recycling in Singapore● Home appliance recycling● Automobile recycling● Precious metal recycling● Used small home appliance recycling● Used cooking oil recycling

Securing Procurement ofMaterials for Recycling● Recovery of automobile catalyst at
European and US business bases

Control of Environmental Risk
● Proper processing of heavy metals and
CFC contained in materials forrecycling● Reduction of wastes by promoting
resource-recycling

Support for Conflict-free
MineralsGlobal Resource-Recycling● Recycling in DOWA’s business bases outside of Japan● Proper recycling in DOWA business bases in Japan
when recycling outside of Japan is difficult in terms oftechnology, equipment and facilities● Obtaining the certificate for a smelterof conflict-flee minerals● Raw material management based on
the DOWA group’s management
policy on conflict minerals

The DOWA group is committed to contributing to sustainable utilization of metal resources
through its business activities, by directly confronting and solving these issues.

18

CSR Policy and Plan
CSR Policy and Focus Measures
The DOWA group’s CSR Policy was prepared to promote CSR activities from a long-term pointof view, based on the Dowa Group’s Corporate Philosophy and Standards of Conduct, referring to
the rules of United Nations Global Compact guidelines. We will carry out our responsibilities forsociety through our CSR activities with the management based on this policy. We endeavor to share
the policy across the whole group, utilizing the group’s in-house newsletters and the Intranet to
implement our CSR efforts in a practical manner.
We evaluated ourselves based on the key focus of ISO 26000 when we set forth our CSR Policy.
We then set forth a priority list of CSR that the DOWA group should address in implementing thepolicy. We are committed to promoting sound business management through implementation of thepolicy as a responsible company.

CSR Policy● We will aim to be an open and transparent company.

Governance● We will endeavor in anti-corruption efforts
including anti-bribery measures taking into consideration international agreement.
● We will take CSR into consideration in our procurement.

Safety● All employees will take part spontaneously insafety activities to improve the level of healthand safety in the workplace, based on our basic
philosophy of “Safety is the top priority.”● We are committed to preventing accidents atwork and supporting health of our employees.

● We will provide customers with products andservices that contribute to building a resourcerecycling society.

Environment

Focus Measures

・We will strengthen internal control andgovernance・We will prepare the CSR procurement
guidelines.

・We will improve our risk assessment.
・We will enhance our safety education
program throughout the group.

● We will reduce environmental burdens and risks
in our business activities.

・We will promote environmentallyfriendly products and renewable energy
fields.

● The management and employees together takepart in environmental conservation activities.

・We will conduct a survey on biodiversity and prepare guidelines.

● We will promote business activities considering
biodiversity.

Society19● We will promote social contributions, reflecting
unique characteristics of each local community.

・We will promote diversity and worklife balance.
・We will promote CSR education.
・We will contribute to local community.

Main Activities in 2013
The DOWA group sets up the goals of our CSR activities in four areas, based on our CSR Policy and Priority
List of CSR to promote CSR activities.
We will continue to improve our activities, based on our achievements and progresses made in 2013. We willreport the details of major initiatives in 2013 and major issues in 2014 on the next page and for each initiative.
〈Main activities in 2013〉
Focus

Goal

Measures

Evaluation*

Main Results

P21

P22

Strengthening of internal
control and governance

Enhancement of internal
control of overseas
business establishmentsA● Support for internal control activities of newly in cooperated companies to ourconsolidated accounting● Encouragement to visit to our business establishments in China and South East
Asia for training● Conducting a briefing on internal control (approximately 260 persons participated)

Promotion of CSR
procurement

Formulation of CSR
Procurement PolicyA+● Preparation of the basic policy on procuring conflict minerals● Obtained Certificate for the Gold Conflict-Free Smelter program● Preparation and publication of CSR Procurement Policy

Governance

Promotion of CSR
activities across the group
Enhancement of risk
management

SafetyEnhancement of safety
education program
throughout the group

Global warming measures

Promoting resourcerecycling
Environment

Promoting diversity
management

Promotion of work-lifebalance
Society

P26

－

－

－

Starting up of the Group
Safety Activity ProjectA● Briefing across the group (Kick off meeting)● Starting up of district meetings

P28

Strengthening the
programs outside JapanA● Support for safety activities on logistics in South East Asia
● Improvement of activities related to Safety Conference in China

P29,
30

Continuous
implementation of
educational courses toexperience risksA● Support for educational courses to experience risks (306 persons took thecourse.)

P27

Reduction of total amountof greenhouse gas
emissionC● Emission of greenhouse gas: 1.718 million CO2 ton.
Emission of greenhouse gas for domestic companies: 16% increase compared tolast year

P35

Promotion of information
sharing on global warming
measures in the groupB● Questionnaire on progress status of global warming measures by business entityand present status

P35

Enhanced development ofrecycling technologies

A● Increased production of silver● Improvement of copper electrolytic techniques● Increased collection of materials for recycling from North America and Asia

P10
P31

Selection of LCA items

C● LCA not implemented

P31
P38

A

● Increased production of metal ceramic PCB for renewable energy related products● Increased orders related to solar power generation and offshore wind generationin the environmental consulting field

Formulation of
Biodiversity Conservation
PolicyA+● Conducted biodiversity survey and formulated biodiversity conservation guideline

Continuous afforestationand forest managementA● Promotion of Forest management (Planted 5,400 broad-leaf trees in Kosaka-machi, Akita Prefecture and promotion of forest management)

Promoting employment ofelderly peopleA● Revision of the re-employment system to hire experienced retired employees
for them to work with motivation across the group.

Promoting employment of
disabled peopleB● Implemented measures to achieve the legally stipulated employment rate Increased number of re-employed employees after mandatory retirementA● Preparation and publication of the action plan to support fostering the next
generation
・Raising awareness of childcare program・Promotion of joint efforts of labor and management to reduce working hours
and thorough management of working hours by introducing a new system

P46

A● Implementing the questionnaire to the newly employed● Implementing initiatives to increase the number of employees to take paid
leaves of absence, including scheduled annual leaves of absence

P46● Collecting information on local contribution by business entities outside JapanP40● Holding and operating events with local communities (Marathon, cross-country
ski competition, cherry blossom festival)

P43● Publication of E-mail news
● Publishing explanation on focus measures of CSR (CSR procurement or safety
labor, etc.)

P39

Promotingenvironmentally-friendly
products and renewableenergy fields

Conservation of
biodiversity

Page

Preparation of the action
plan to support fostering
the next generation

Contribution to local
communities

Promoting social
contribution, reflecting
unique characteristics ofeach local community

A

Promoting in-house CSR
education

Improvement of in-house
CSR portal site

A

P32

P45

*Evaluation: A+: More than expected, A: accomplished, B: Fair, C: Not Accomplished20

Aimed at Improving Business Management

Governance

The DOWA group puts enhancement of corporate governance as one of the
top priority of the management and strives to set in place and operate anefficient and effective internal control system, based on the Dowa Group’s
Values and Standards of Conduct. Recently importance of our activities
through the supply chain has increased along with our globalization.

CSR Policy ● We will aim to be an open and transparent company.

● We will endeavor in anti-corruption efforts including anti-bribery measures taking into considerationinternational agreements.
● We will take CSR into consideration in our procurement.

Progress of Activities

Following is the progress of our corporate governance activities and issues in 2014.

Goals of corporate
governance/
Governance

FY of 2013

Strengthening ofinternal control andgovernance

Enhancement ofinternal control ofoverseas businessestablishments

Promotion of CSR
procurement

Promotion of CSR
activities across thegroup

Measures

FY of 2014
Evaluation*

Main results

IssuesTargetA● Support for internal control activities of newly incooporated companies to our consolidated accounting● Encouragement to visit to our business establishments
in China and South East Asia for training● Conducting a briefing on internal control (approximately 260 persons participated)

Support activities for individual
business establishment in andoutside Japan

10 businessestablishments inand outside JapanA+● Preparation of the basic policy on procuring conflictminerals● Two companies obtained Certificate for the Gold
Conflict-Free Smelter program● P reparation and publication of CSR Procurement
PolicyFormulation of CSR
Procurement Policy

N/A

N/A

N/A

Preparation of CSR Procurement
Guideline
Promotion of in-house CSR procurement education

Holding abriefing

Operation of conflict minerals management system
Establishment of mid-term CSR
goals
Review of focus measures*Evaluation: A+: More than expected, A: accomplished, C: Not Satisfactory, D: Not AccomplishedStrengthening of Internal
Control and GovernanceWe conducted on-the-place training at thecompanies in China and South East Asia in
2013. We also held a briefing to the Japanbased companies to deepen understandingof internal control and approximately
260 persons participated. In 2014 we will
support individual companies both in andoutside Japan according to their needs aspart of our initiative to strengthen internal
control.

21

CSR Procurement
We reviewed our procurement policy,
prepared and published a new one, taking
CSR into consideration. In 2014 we will
enhance internal education and explanation
to our suppliers in order to put the CSR
Procurement Guideline in place and implement this based on the policy.
Eco-System Recycling, following
Kosaka Smelting and Refining, obtained
the Certificate for the Conflict-Free Smelter
program. We started offering conflict-free recycled gold to our customers whoare committed to procuring conflict-freeminerals.

Promotion of CSR Activities
across the GroupWe will review the mid-term CSR goals
and focus measures, based on the results
and progress status of CSR activities so far,to strengthen them through our businessactivities.

Conflict Free Smelter was awarded
Governance

Focus Measures

The DOWA group is promoting “CSR procurement” as a focus
measure of our entire supply chain. We obtained the CFS (Conflict
Free Smelter) certificate from EICC/GeSI* to promote conflictfree minerals together with our customers, as we mainly handle
metal resources.
*Note
EICC: Electronic Industry Citizenship Coalition
GeSI: Global e-Sustainability Initiative

Conflict Minerals
Conflict Minerals refer to gold, tantalum, tin and tungsten that are producedin the Democratic Republic of the Congoand the surrounding countries whererevenues from their sale may be used tofinance armed groups and anti-government groups in those countries. In USA,
the Securities and Exchange Commission(SEC) adopted the Dodd-Frank WallStreet Reform and Consumer Protection
Act in August 2012 and the final rule requires manufacturers who file reports with

the Securities and Exchange Commission
to disclose whether or not their products
contain Conflict Minerals.

Our Initiative through Our
Supply chain
The DOWA group is not listed with the
US SEC. Therefore, we are not obliged tocomply with the reporting rule on conflict
metals. Even so, our products are used ina vast number of products including automobiles, electronic and electric appliances.
Tracing the origin of raw materials will
eventually reach to suppliers of raw materi-als and smelters.
We started to prepare measures for conflict minerals in 2011. We prepared ourpolicy on conflict minerals and publishedin August 2012. We also started to establish a management system to implement
a survey on our use status and our suppliers of those minerals and suppliers. We
also started our initiative as a responsible
smelter to offer metals that are not fromconflict minerals by obtaining the third
party’s certificate.

DOWA’s Conflict Mineral Management Policy
The DOWA group disclosed “Conflict Free Mineral Procurement Policy” (no use declaration) in 2012 which was revised to“DOWA’s Conflict Mineral Management Policy”, disclosed in December 2013.
DOWA’s Conflict Mineral Management Policy

CFS Obtained for Responsible
Mineral Procuremente
As it is difficult to investigate whether
conflict minerals are contained or not ina huge number of products, EICC, which
is an organization to promote CSR in theelectronic industry. and GeSI, which isan organization to promote economic,
environmental and social sustainability
in the ICT sector. offer the Conflict Free
Smelter (CFS) certificate program toaudit smelters that are closest to the upperstream of minerals. In this program metals
shipped from these certified smelters
are regarded as conflict free. Third party
organizations evaluate procurement activities of smelters and refineries anddetermine whether all minerals handled
by those are from conflict-free mines or
recycled. More specifically, these orga-

www.dowa-csr.jp/en/csr/procurement_policies.html (in English)
www.dowa-csr.jp/about/procurement_policies.html (in Japanese)nizations inspect procurement policies,
standards of conduct, analytical processesof procured materials and how to selectsuppliers. They confirm whether thedefinition of materials for recycling of
those smelters are appropriate or not
through local auditing and relevant documents.
We started preparation to obtain the gold
certificate as a smelter to offer conflictfree minerals in 2012.
Kosaka Smelting and Refining obtained
the CFS certificate for Gold in August2012 and cleared the renewal audit inAugust 2013. Eco-System Recycling thatis engaged in precious metal recycling(secondary refining) obtained the CFS
certificate for gold in December 2013.
Understanding and cooperation fromour suppliers enabled DOWA to obtain thecertificate for conflict-free minerals.

We will continue to promote risk management, monitoring of business activities
and education not only across our businessestablishments but also across the entire
group.

22

GovernanceCorporate Governance System
The DOWA group adopted the executive officer system to soundly andeffectively operate organizations, fasten decision-making and for effective
management. The group also adopted the holding company system toseparate business units from the holding company as subsidiaries.
We also strive to ensure sound business management, focusing on enhancement of corporate governance through internal controls. This is done
to improve quality and efficiency of management to implement open,
highly transparent management, based on the Dowa Group’s Values andStandards of Conduct.

Corporate Governance System (As of March 31, 2014)
Type of organization

Company with auditors

No. of directors

6 (No. of directors designated in
the article of incorporation: 13)

Of which are outside the company
directors

Term of office of directors designatedin the article of incorporation

1 (Designated as independent
officer)

1 yearChairman of board of directors

President

No. of auditors

4 (No. of auditors designated in
the article of incorporation: 5)

Of which are outside the company

2

Annual Meeting of Shareholders
Elect, dismiss

Elect, dismiss

Board of Directors

Board of Auditors
Independent auditors

4 auditors

6 directors(including 1 outside Director)

Elect, dismiss

Audit(including 2 outside directors)
Audit

Audit

Audit

Business
Execution
Lawyer| Holding Company | DOWA Holdings
President

Business Strategy Committee Board of Directors

AdviceBusiness Execution Committee Board of Directors and officers*

Management

ReportInstruction, Audit| Group of Operating Companies |Operating Companies*
DOWA ECO-SYSTEM Co., Ltd.
DOWA METALS & MINING Co., Ltd.
DOWA ELECTRONICS MATERIALS Co., Ltd.
DOWA METALTECH Co., Ltd.
DOWA THERMOTECH Co., Ltd
Instruction, Audit

To strengthen corporate governance,
we encourage each company in the groupto share the basic policy and the system
of internal control with DOWA Holdings
and also entrust each company to conduct

23

Report| Support Companies |DOWA Technology Co., Ltd.
offers technical support.

SupportDOWA Management Service Co., Ltd.
offers clerical support.

ReportEach Subsidiary of Operating Companies

Internal Control Activities

NoticeDOWA Consultation Desk (outside lawyer)

Planning, PR, HR, Human Development,
Administration and Legal, Accounting and finance,
CSR, Technology and Information System departments.

* President of an operating company servesconcurrently as a non-fulltime executive directorof DOWA Holdings.

their own activities which shall exploit
each company’s uniqueness. This ensureseffective and efficient internal control
based on the holding company system.
As part of implementing and operatinginternal control, we set up DOWA Consultation Desk and conduct internal con-trol to prevent and discover errors andunfair conduct at an earlier stage. We willcontinue to promote proper implementationof the system, responding flexibly to changes of our business and social environments.

Relations with Stakeholders
Main stakeholders

The DOWA group communicates in many ways at each offices and sections with our
stakeholders, which are mainly our customers, shareholders, investors, partners, local
communities and employees.
Our Responsibility

Activities

CustomerAll customers who use theproducts and services offeredby the DOWA group○ Ensuring quality and safety of our products andservices○ Providing eco-friendly products  ○ Pursuit of Customer Satisfaction (CS)  
○ Protection of customer information

Shareholders
andinvestors

Individual or institutional
investors including ourshareholders○ Maximization of corporate values  ○ Dividends  ○ Disclosure of information and dialogue○ General shareholders’ meeting  
○R esults briefing and periodic presentations to investors○ Preparation of annual reports and business reports  ○D isclosure of information on our website

Partners

All partners who collaborate
with us for provision of the
products and services offeredby the DOWA group○ Selection of procurement sources based on fair andunbiased basis○S upport for CSR and environmental activities inour supply chain○ Seminars and exhibits  ○ Plant inspection events  
○P resentations to partners including green procurement○ Quality and environment audit  ○C orporate ethics contacts

Local
communities

People in local communities
who we interact with throughour offices and main businessactivities○E nvironment conservation activities  ○ C ontribution to regional development throughsupport for cultural and sports activities○ Educational activities  ○ Disclosure of information and dialogue○ Plant inspection events for local people  ○ Participation in local groups  ○ H osting, participation in and support for local
events○ Risk communication

Employees(including
their family
members)

Employees who work in the
DOWA group and their family
members○ Proper evaluation and treatment  ○ Ensuring diversified human resources  ○ Promotion of work/life balance  ○ Ensuring health and safety of workplace○ Human development  ○ Respect for human rights○ Management meeting  ○ Management-labor interviews○H uman resource education and environmental education○ In-house newsletters & portal site
○ Events for family members of employees

Relationship with Central
and Local Governments andIndustrial Groups

Example ofparticipation○ Seminars and exhibits  ○ Plant inspection events  ○ PR activities on environment  ○ Disclosure of information on our website

The DOWA group participates in committees and forum sponsored by central and local
governments and the industrial community and promote activities related to public policies
including reviewing proposals and measures, formulating and reviewing legal systems andinternational cooperation, aimed at resolving social concerns.
President and representative director Masao Yamada
February 2013 until present: Member the Central Environment Council, Ministry of theEnvironment
December 2012 until present: Chairman of the Waste Recycling Subcommittee, the Environmental Safety Committee, Nippon Keidanren (Japan Business Federation) April 2012 until
present: Director of the Center for Eco-Mining
We actively participate in international conferences held by Japanese and other oversea
governmental agencies and contribute to preparing policies from the viewpoint of theindustrial world.

Lecture at the 3rd EU, US, Japan Critical MaterialsWorkshop
The 3rd EU, US, Japan Critical Materials Workshop was held in Brussel, Belgium, under
the sponsorship of EC, US Department of Energy and Japanese Ministry of Economy,
Trade and Industry in May 2013. In the workshop, Mr. Shiratori, head of the Environmental
Solution Office, DOWA Eco-System delivered a lecture on characteristics and comparisonof recycling in EU, US and Japan as well as the latest trend of recovery of critical metals.
In this workshop, it was confirmed that technical development of rare earth excavationand extraction, reduction and recycling and alternate technologies are important. It wasagreed upon that a trilateral cooperation system should be put in place through a concerted
effort of government officials, industries and researchers.

Participation in International
Organizations andConsortiums

The DOWA group has been participating in the UN Global Compact (UN GC) since
March 2009. The DOWA group is committed to respecting and implementing the GC’s ten
principles in four areas of the Global Compact of human rights, labor, environment and anticorruption—these are geared towards sustainable development of society.
○ Global Compact Japan Network http://www.ungcjn.org

24

Governance
Our Efforts for Human Rights and Corruption Prevention
The DOWA Group is committed to prohibiting discrimination against nationality, race, ethnic group, religion, sex, age anddisability; child labor; forced labor; and tackling corruption under the ten principles of the UN Global Compact.
We strive to understand the circumstances relating to human rights by conducting surveys in our subsidiaries both in Japanand other countries.
In 2013 we did not receive any report of discrimination relating human rights, child labor, forced labor and actual cases ofcorruption. The DOWA group will continue to respect human rights and promote anti-corruption measures.

Compliance
The DOWA group places strict “Compliance” as the basis of our corporate management and is promoting such measures as
strengthening of internal control and education, based on the standard of conduct of our group.

Standards of Conduct of the DOWA group http://www.dowa.co.jp/en/about_dowa/cvision.html
The DOWA group set forth Standards of Conduct to attach importance to the philosophy that a company is partof society, which comply with laws and regulations and take a sensible course of action, and continues to work
independently towards creating a good life for all and building a resource-recycling society.

Our efforts
in Japan● Established an in-house corporate ethics office.
● Hold a monthly compliance meeting to confirm compliance status.
● Notify various regulations and guidelines without fail in in-house group meetings.
● Offers in-house study sessions, lectures to the public, correspondence education programs oncompliance.
● Prepares and notifies manuals on the handling of non-compliance cases.

Our efforts
outsideJapan● Delivers in-house educational programs on the DOWA group policies and standards to all
employees (in China).
● The Standards of Conduct of the DOWA group was translated into Chinese and posted on thewall of each of our business entities (in China).
● Built a system for employees to directly communicate and consult with management (in China
and Thailand).
● Set out a comment box for any employee to make proposals and complaints (in China).
● Prepared a company rulebook (in USA).

DOWA Hotline Desk
We set up the DOWA Hotline Desk andinform the existence of the Desk throughin-house posters for the purpose of making

25

workplace safer and more comfortable.
Through this Hotline Desk employees canconsult their problems in the workplace
directly with corporate lawyers. The DOWA
Hotline Desk is open even for our customers

and partner companies for those employees
to use and thus be able to build sound relationships outside our company.

Supply Chain Management
The DOWA Group, as part of our CSR management that we promote together with our stakeholders ,aims for the CSR
supply chain management that involves our partners,.
In 2013 we revised our procurement policy to promote CSR across the entire supply chain.
We discussed the matter with the CSR department and other relevant departments. We established our CSR procurement
Policy by adding “Sustainability” to existing “Quality, Cost and Delivery (QCD),” as our effort for social responsibility forenvironment, human rights and labor safety.
We will establish a guideline based on this policy and deliver the guideline in-house as well as our partners.

CSR Procurement Policy
The DOWA group endeavors to deepen understanding ofour partners of CSR procurement policy. When we selectour partners, we will consider Q (Quality), C (Cost) andD (Delivery) plus S (Sustainability) that is their social
responsibility effort for environment, human rights andlabor safety. With this in mind, we will evaluate and select

1
2
3
4
5
6

our partners comprehensively, fairly and impartially.
We will strive to build a mutually reliable relationshipwith our partners who produce excellent products properly
meeting the needs of our customers, aiming at mutual prosperity.

Legal compliance and fair trade
We consider not only compliance but also fairness and impartiality as the top priority and we endeavor to conduct fairtrade with our partners. We ask all our partners to comply with relevant laws and in-house rules and regulations before
starting trading with us.

Optimal quality and fair priceWe will ensure quality required by our customers and provide our products at a fair price in collaboration with ourpartners. We ask our partners to put their quality assurance system in place and provide us with materials and services
that are competitive in the market.

Establishing a stable supply system
We endeavor to prepare Business Continuity Plans (BCP) in each business entity in the group and ensure stable supplyof products to our customers even in emergencies. We ask our partners to build a stable supply system of materials andservices and conduct risk management for emergencies to ensure timely delivery.

Sustainability
We will try to recycle resources based on 3R’s (Reduce, Reuse and Recycle) to contribute to sustainable society andpromote purchasing of resources and materials with less environmental burdens (Green Procurement). We ask ourpartners to ensure environmental conservation, respect for human rights, and workplace health and safety. When we
select our partners, we place value on the management system that can continuously improve sustainability.

Information Protection
We will not disclose confidential information of our partners to third parties without permission. We ask our partners tokeep confidential and personal information obtained in the course of business with our group in strict confidence and not
to disclose such to in-house and external third parties without permission from us.

CSR Procurement Guideline
We are promoting procurement, based on the DOWA group’s CSR Procurement Guideline. We ask our partners to
implement CSR procurement as part of our supply chain, notify their relevant parties of this policy to deepen theirunderstanding and obtain cooperation from them.

26

Raising the Level of Safety Activity across the Group

SafetyThe DOWA group put in place a “safety and health committee” in each of its
business entities in Japan and other countries to promote safety activities
according to the annual health and safety plan, based on our basic philosophyof “Safety is the top priority.” We started up the Safety Activity Project acrossthe Group last year and enhanced joint efforts per district. We are committed
to raising the level of safety activities across the group.

CSR Policy ● All employees will take part in safety activities with their own initiatives to improve the level of health andsafety in the workplace, based on our basic philosophy of “Safety is the top priority.”● To prevent work-related accidents and support the sound health of employees.

Progress of Activities
Safety/Goals of
SafetyEnhancement ofrisk management

Enhancement ofsafety education
throughout thegroup

Following is the progress of our safety activities and issues in 2014.

FY of 2013
Measures

FY of 2014
Evaluation*

Main results

Starting up of theGroup Safety Activity
Project

A● Briefing across the group (kick off  meeting)● Starting up district meetings.

Strengthening the
programs s outside
Japan

A

● Support for safety activities of logistics in South EastAsia
● Improvement of activities related to Safety Conference in China

A● Support for educational courses to experience risks(306 persons took the course.)

Continuous
implementation
educational courses toexperience risks

Activity
To enhance district activities.
Follow-up the development of the
project of each business entity.

Start programs to visit Japan for
training

To continuously implement educational courses to experience risks
To promote such education tobusiness entity outside Japan

TargetHalf the numberof accidents
causing absenceof work
Accepting 20
persons for the
first trainees
300 persons takethe course
annually*Evaluation: A+: More than expected, A: accomplished, C: Not Satisfactory, D: Not Accomplished

Enhancement of Risk Management
We held the briefing across the group asa kick off for the first half of Fiscal year
2013 to develop the Safety Activity projectacross the group. We set up a secretariat(sponsoring business entity) per district in
the latter half of FY and started up district
meetings to share information on the statusof the activity of each company in each
district and for mutual consultation.
In 2014 we will promote these activities
per district mainly focusing on those
district meetings.

27

Enhancement of Safety
Education across the Group
Outside Japan, we promoted support forsafety activities for logistics business inSouth East Asia (Thailand and Indonesia)
and encouraged all of our business entities
in China to participate in the Safety Conference.
In 2014 we will start up a training program for local employees outside Japanin the Technical Training Center of the
DOWA group (Handa City, Shizuoka Prefecture), Japan.
The program shall provide safety educa-tion to local employees of business entities
of DOWA outside Japan and to raise safety
awareness of those in charge of safety
outside of Japan.
We will continue offering safety coursesthat TABMEC has been providing since2010 as part of educational courses to gain
understanding of risks, improve sensitivity
to these risks and raise safety awareness.
We are planning to offer educationalcourses to gain understanding of risks,
utilizing Safety Training Center of DOWA
Metals and Mining for local employees
outside Japan in 2014.

Safety Activity Project across the Group
SafetyFocus Measures

The DOWA group started the “Safety Activity Project across the Group” in September 2012and placed this project as a focus project for safety. Safety activities are being implemented inall business entities in and outside Japan including health and safety committee and patrols.
However, some business entities have more accidents than others. We reviewed such differencesand discovered a great gap between the attitudes and methods of safety activities employed at each
entity. This discovery made us define across the group what the most effective safety activity is,based on the successful cases. We formulated a policy to raise the level of safety of the DOWA
group by adopting the most effective activity for all the establishments across the group.

Safety Activity Project
To determine standard activities and their details, based on good practice

Policycases of safety activity in the group and develop them across the group.
• Integration of the “top down” (instantaneous effect) and the “bottom up” (continuous effect).

Key ideas• Improvement of effectiveness of the safety activity.
• Safety activities in which all employees participate and can clearly identify of their roles.

Formation of the safety standards of the DOWA group which is the“ideal image” of safety activities, worked mainly by the project members

Raising the safety level inconstant upwards spiral

Confirming the gap between“ideal image” and the present
status by each entity

Planning andimplementing a further
improvement plan

Planning and implementing
an improvement plan
to reach the “ideal image”

Mutual checking anddiscussion of theresults of improvements
within the district

Importantfactors to beenhancedfrom now on

Spread out the good and leading-edge practices throughout the group,
which will raise the level of the Safety Activity.

With the slogan of “No One Is Hurt—No One Hurts
Others” the person in charge of safety activities in major
business entities in Japan was appointed as a member of thisproject. They discussed under the supervision of a director
from the headquarters in charge of safety, the “ideal image”
of safety activities, including potential accident prevention
measures, risk assessment and safety patrols for almost ayear. We held a whole group briefing on the standard inAugust 2013 as a kick-off event to fully spread out thesafety standard of DOWA that consists of 10 items such as:
potential accident prevention measures, risk assessment andsafety patrols.
We started up a district meeting, discussion group organized according to districts, in the latter half of 2013 tofollow up the individual activities in each of our business
entities. Our companies in Japan were organized into
district blocks, regardless of their operating company, andin each district a secretariat for safety was established. The
secretariat shall function as a place to share informationof safety activity status of each company by district andalso for mutual consultation. This will further strengthen
deployment and spreading out of safety activities in eachcompany and also raise the level of safety of each district
through mutual consultation.
In 2014 we will further enhance activities of each district(joint patrol and audit in each district) centering on the
district meeting.

28

Safety
Our Efforts for Occupational Health and Safety
Promotionof safety
activity

We had offered joint “Joint Cross-Checking Safety Patrol”
sessions, safety environmental compliance seminars and risk
assessment presentations jointly with our business entities
in Japan every year on a periodic basis and promote safety
activities throughout the whole Holdings group even before
the this Safety Activity Project started.
Risk assessment presentation

Our activities in Japan
Environment and Safety
Compliance Seminars
We strive to raise awareness of employeeson the environment and safety throughCompliance Seminars for safety and environment by outside lecturers, throughcase studies of environmental accidents ofother companies, and role-play exercises ofenvironmental accidents. These complianceseminars have been held since 2010. In 2013
we held them at four places and a total of
81 persons participated.

Place

Date

No. ofParticipants

Eco-System Chiba

July 27

23

Eco-System Sanyo

September
10

13

Kosaka Smelting
and Refining

November
28

30

CEMM

January 22

15
Environmental safety compliance seminar

Details of 2013 compliance seminars

Joint Safety Patrols
Joint safety patrol sessions are held jointlywith our business entities in the Northern,
Kanto, Chukyo and Western districts inJapan once a year as a rule. We try to raise
the safety level of each establishment andincrease sensitivity to risks of participants insafety patrol by identifying un-safe situations
and behaviors from the third party’s viewpoint. This patrol is organized beyond theboundary of an operating company to which
each business belongs. Sixty-one participatedin the patrol in 2013.

Our activities outside Japan
ThailandThe four operating companies of the
DOWA operate in five different places inThailand, where many industries gather asa major marketplace in South East Asia.
Safety activities similar to those in Japan
also started as a joint activity of all fivecompanies in Thailand. Each company
organizes joint safety patrol and holds
safety related conferences in turn. Local
employees in charge of safety have built ahuman network beyond the boundaries of

29

Place

Date

No. ofParticipants

Eco-System Chiba

August 23

17

Kosaka Smelting
and Refining

September
19

13

DOWA Hightech

October 29

17

Handa Plant,
Thermotech,

December
17

14

Description of 2013 safety patrol

Safety Exchange patrols

The DOWA group promotes safety activities also outside Japan, especially in Asia where ourpresence has increased dramatically. We promote exchange and communication on safety activities
among our business entities outside Japan, especially in Thailand and China.

the company they belong to. Concluding
the activities of last year, a conference
to present the results of safety activities
called “DOWA Safety Award” was held
in a hotel in Bangkok, Thailand. Someapplications for this award were fromIndonesia and China. All participants
rated the presentations and top three wereawarded. We shall continue to promoteexchange and communication programs
among those companies and we arecommitted to raising the level of safety allover Thailand.

DOWA Safety Award in Thailand

ChinaThe DOWA group has seven business
entities in China. They have held the “Safety
Conference in China” in turn two or threetimes a year since 2011. The management
and employees in charge of safety in all
DOWA businesses in China participate in theconference. There they deliver presentations
about joint safety patrols and recent cases ofaccidents from each company and discuss the
problems. The CSR department of DOWA
Holdings sent people to the conference in2013 and delivered a presentation on thesafety activities in Japan and exchanged
opinions with local employees. We willfurther promote exchange programs oncommon issues and concerns among all of
those companies and joint study session for
local employees.

Joint Safety Patrols (China)

Status of Occupational Accidents[2013 accident incidents at the DOWA group’s production sites]
The frequency of accidents at DOWA group’s production sites was compared to that of other companies of similar scale listed in theoccupational accident statistics by the Ministry of Health, Labor and Welfare. DOWA’s frequency rate was 1.30 compared to thatof the 2.89 of other companies and the severity rate was 0.06 which other same scale companies was 0.28, which showed that theaccident rates were lower than the same scale companies.
Note: These rates are compared to those confirmed values of the accident statistics in 2012 for a company with 30 to 99 employees(average number of employees in each one of DOWA group’s production bases).

Evaluation from Society
The Industrial Safety and
Health Administrator Award
for Groups Conferred
DOWA Okayama (9 operating subsidiaries in the same site) received the Group
Industrial Safety and Health Administrator
Group Award from the Okayama branch of
the Okayama Labor Standards Associationsin May 2013. The DOWA Okayama was

The Labor Standards
Associations Chairman Award
for Individuals Conferred
The 60 th Akita Industrial Safety and
Health Conference was held in October
2013. Mr. Sato, Work Group Leader, Production Department, Akita Zinc Solutions
received the Labor Standards Associations

awarded because there were no occupational
accident occurred in 2012. Also recognized
was its contribution to preventing labor
accidents in constituent production sites,
including presentation on supervisor
education by a unique curriculum andstudies on risk assessment of shipment of
fuming sulfuric acid in the National Safety
and Health Conference held in Toyama thatthe company delivered last year.

Chairman Award for Individuals. Mr. Sato,in charge of safety and health has been
engaged in planning and implementing
the annual activity plan since 2002. He
has been promoting safety educationsuch as risk assessment to employees
enthusiastically and endeavored to prevent
accidents. His dedication is the reason of
the award.

We will continue to maintain the group’s record of no accident or disaster, ensure safety and health of
employees and increase business results by promoting and improving safety and health activities.

30

Reduction of Environmental Burdens and Risks from Business Activities

Environment

The DOWA regards environmental conservation as a key issue in our business
management and is committed to its promotion. In our environmental activities we are responding to environmental and social issues directly through our
main business and at the same time we are reducing the environmental burden
produced by our business. We will strive for environmental conservation andto create economic value of the conservation activity at the same time.

CSR Policy ● We will provide customers with products and services that contribute to building a resource-recycling society.
● We will reduce environmental burdens and risks in our business activities.
● The management and employees together take part in environmental conservation activities.
● We will promote business activities considering biodiversity.

Progress of Activities
Environment/Goals
of Environment

Following is the progress of our social activities and issues in 2014.

FY of 2013
Measures

FY of 2014
Evaluation*

Main results

Activities

TargetTotalemissionand electricity
generated

Reduction of total amount ofgreenhouse gas emission

D● Emission of greenhouse gas: 1.718 ton of CO2.
● Emission of greenhouse gas for domestic companies:
16% increase compared to last year

Reduction of total amount of emissionof greenhouse gas
Increase of electricity generated byrenewable energy sources (solar, water)

Information sharing on
global warming measures in
the groupC● Questionnaire on progress status of global warming
measures by business entity and present status

Sharing by information visualization

Systemimplementation

Promotingresource-recycling

Enhanced development ofrecycling technologies

A● Increase of silver production● Improvement of copper electrolysis technologies● Increase collection of recycling materials from North
America and Asia

Expansion of material recycling

Amount ofrecycling

Promotingenvironmentallyfriendly products
and renewableenergy fields.

Selection of LCA items

D● LCA not implemented

A● Increased production of metal ceramics PCB for
renewable energy related products● Increased orders for services on solar generation andoffshore wind generation on the ocean

Expansion into renewable energy field

Sales

Formulation of Biodiversity
Conservation PolicyA+● C onducted biodiversity survey and formulated abiodiversity conservation guideline

To conduct a survey on present statusof biodiversity Conservation
Conduct water risk assessment

Implementation of survey
andassessment

Continuous afforestationand forest managementA● Promoted forest fostering (Planted 5,400 trees in
Kosaka-machi, Akita, Promotion of forest management

To continue afforestation and forest
management

Numbers oftrees to beplantedGlobal warming
measures

Conservation of
biodiversity*Evaluation: A+: More than expected, A: accomplished, C: Not Satisfactory, D: Not Accomplished

Global Warming Measure
Emission of greenhouse gas increased
to 1.718 tons of CO2 as compared to 1,490
last year, although we tackled with global
warming measures focusing on energy
saving in the production process. Increase ofemission of greenhouse gas for companies inJapan is mainly due to increased fuel usage inconnection with expansion of production andprocessing throughput. However, the increaseof the commercial electricity emission factor
contributed to the increase partially. We arecommitted to further reducing fuel usage andat the same time increase usage of in-houserenewable power generation such as hydraulicand solar generation.

Promoting ResourceRecycling
Kosaka Smelting and Refining recovers
copper, gold and silver using furnaces dedicated for recycling. Those furnaces can evenrecover electronic scraps. Kosaka ranked
the top in Japan for silver recovery. Kosaka
also stabilized its operation by improving
the copper electrolysis process in 2013. In2014 we endeavor to improve recycling
technologies and expansion of resourcerecycling within the group.

Promoting Eco-friendly
Products and Renewable
Energy Fields
We planned to promote LCA (Life cycle
assessment), aimed at expansion of eco-31

friendly products; however, we were unable
to successfully select the targeted products
in 2013. As for the renewable energy field,
production of silver for PVs recorded thehighest and the survey on and technology
due-diligence of solar power generation
expanded in our environmental consulting
business. These contributed to introduction
and implementation of renewable energy
sources. We strive to develop innovativetechnologies and energy saving technologies
as well as diversify our business fields.

Conservation of Biodiversity
We formulated DOWA’s basic policy andcourse of action of biodiversity in 2013. In2014 we will acquaint all employees of thepolicy thoroughly and conduct a survey for
preparation of biodiversity conservation plan.

Environment

Focus Measures

Our activities towards Biodiversity
DOWA enjoys the blessings of nature through purchasing raw materials and consuming water andenergy, but, on the other hand, our business activities affect nature directly and indirectly in terms ofemission of wastes, effluent, chemical substances and CO2. We recognize both sides of our business andconduct our business activities in a way to contribute to biodiversity and environmental conservation.

Sustainable Use of
Biodiversity and Ecosystem
ServiceGreening and reconstruction of vegetationof those areas is our mission and we havebeen actively engaged in those activities.
These conservation activities also played
a great role to increase communicationand exchange between DOWA and local
communities.
Increasing importance of biodiversity
requires business to quickly respond toconservation needs and sustainable use of

Our activities on biodiversity and ecosystem conservation have been concentrated on protection of nature and local
contribution through management of ourown forests and planting trees. We once
destroyed forests in our mining business.

biodiversity.
For this purpose we formulated DOWA’s
basic policy and course of action of
biodiversity in 2013. We will help makeour employees understand the relationshipbetween our business activities and theecosystem as well as trends on biodiversity.
We also will reflect the contents of thepolicy and the course of action into ourbusiness activities across the group.

The Basic Policy of Biodiversity
DOWA recognizes that it enjoys the blessings of nature brought by biodiversity for its business activities andthat it is important to conserve biodiversity to enjoy them on a sustainable basis. DOWA strives to continuously andvigorously promote biodiversity conservation and its sustainable use.

Our Action Policy on Biodiversity Conservation

1
2
3
4

Identification of business impacts on biodiversity and implementation of activities
We identify and analyze what type of ecosystem services* our business activities depend and have impact on,
and make an effort to avoid and reduce the impacts.

Awareness of employees
We carry out education and awareness-raising of biodiversity on our employees.

Corporate management for sound material cycles
We strive to create a culture of sound material cycles through sustainable resources use, energy saving and 3R,
and to conserve biodiversity through such comprehensive business activities.

Collaboration with various stakeholders
We promote communication and information sharing on biodiversity conservation, and seek sustainable use of
biodiversity with various stakeholders related to our business activities.

In 2014 we will review which activities
we should place priority on; how weshould conserve biodiversity from thestandpoint of relationship between ourbusiness activities and ecosystem.

We will continue to hold a tree-planting
ceremony and educational courses
on forests for parents and children, in
cooperation with local communities todeepen their understanding of our businessand ecosystem conservation activities.

We will conduct multidimensional
activities including CSR procurement
through our supply chain and understanding of risks involving water that is ourvery important natural resource.

32

Environment
Material Balance of DOWA GroupThe DOWA group identifies the input of resources and energy into the businessactivities of the DOWA group (“INPUT”) and the output of products produced
and the discharged amount of substances imposing environmental burden(“OUTPUT”) in each stage of its lifecycle in a quantitative way and conductbusiness considering material balance.

INPUT

Resource-Recycling in Society
and Our Resource-Recycling

Energy17.4 PJ

We can look at our business from two sides:
product manufacturing business where metalmaterials and semiconductors are produced andenvironmental business of wastes recycling,processing and soil remediation.
We not only contribute to society through ourbusiness activities but also make use of most of
the waste generated in the product manufacturingbusiness as raw materials after they are recycled
in the environmental business. Also in the environmental business we effectively utilize heatgenerated when waste are incinerated in the waste
treatment process. This waste heat is recovered
as steam and electricity and we use them inother processes as energy. These examples show
we use materials and energy within the groupand conduct our business with consideration of
resource-recycling.

Fossil fuel consumption

For details of each item, see following pages.

33

+11％
124（1,000 KL）

Electricity

1,266 GWh
Thermal power generation
1.4 GWh
Hydraulic power generation 67.8 GWh
Solar power generation
303 MWh
Purchased power

578 GJ

Purchased steamto
Raw and Packaging Materials Comparedprevious year+6％

1,006（1,000 t）

Material Balance of 2013

Raw material792（1,000 t）

Subsidiary material

142（1,000 t）

Materials for heat treatment
on consignment

69（1,000 t）

Packaging material

2.3（1,000 t）

Water resource

Recycled

Environmental burden outside Japan increased
compared to last year, as three new companies
started operation outside Japan in 2013.
○ INPUTThe amount of purchased power and fossil
fuel consumption increased in connection withincreased production and treatment. Total amountof energy input increased by 11% compared toprevious year. As for total material input, accepted
waste increased by 9% and amount of materials
used increased by 4% compared to previous year.
○ OUTPUT
Total emission of GHG (greenhouse gas)increased by 16% compared to previous year
as a result of increased energy input and worse
electricity emission factor in Japan. As for total
waste recycling that occurred, material recycling
increased dramatically by 29% compared to previous year, while the amount of wastes decreasedby 5 % compared to previous year.

Compared toprevious year

1.03 million m

3

Accepted wastes
1,122（1,000 t）

Compared toprevious year

－2％

Compared toprevious year

+9％

Wastes991（1,000 t）

Contaminated soil

131（1,000 t）

Destructed CFC

41 t

DOWA group

OUTPUT
Greenhouse gas

Compared toprevious year

+16％t）1,718（1,000（as converted to CO ）2

R&D
Procurement of raw materials（1,000 t)（as converted to CO2）

Derived from electricity

752

Derived from fuelt)343（1,000（as converted to CO ）2

（1,000 t)（as converted to CO2）

Derived from wastes

624

Discharged chemical
substances

2,526 tEnvironmental
Business+10％569（1,000 t）

Products

Product
Manufacturing
Business

Compared toprevious year

Compared toprevious year

+1％

2.2 GWh

Sold power

Amount of waste and recycling

1,362（1,000 t）
Compared toprevious year

+19％
Power generation
by waste heat
Power generated
from recovered heat

74 GWhAmount of recycling

845（1,000 t）

Thermal recycling

471（1,000 t）
438（1,000 t）
33（1,000 t）

Directly from the DOWA group
Outside the DOWA group

719 TJ
Compared toprevious year

+8％

Amount of material374（1,000 t）
Directly from the DOWA group 156（1,000 t）
Outside the DOWA group218（1,000 t）

Material recycling

Treated Waste

Effluent

517（1,000 t）
Compared toprevious year

104 million m +8％3In-house recycling
34

Environment
Our Measure to Fight against Global Warming
The DOWA group set a goal of “15% reduction of specific consumption of CO2 by 2020, compared to 1990” according
to the Action Plan to Implement Low Carbon Society by Nippon Keidanren (Japan Business Federation) and the Japan
Mining Industry Association (published as of January 2013) as a measure to fight against global warming.
○ Changes of Emission of GHG
The CO2 emission derived from GHG in 2013 was, 1,718,000
t–CO2 (1,677,000 t-CO2 in Japan and 40,000 t-CO2 outside Japan).
The CO2emission from GHG in Japan increased by approximately
16%. It is attributable to increase of power consumption resulted
from the increased zinc production in Akita Zinc and increaseof fossil fuel consumption in connection with the increased
processing of wastes in Eco-System Okayama. Outside Japan,
mainly CO2 emission derived from fossil fuel increased. This is
attributable to addition of three plants in Asian countries in 2013.
We will continue to promote measures for effective use ofenergy and conduct activities to reduce CO2 emission on a daily
basis.
We accept wastes from other companies outside the DOWA
group for incineration in our plants. Therefore, their CO2 emission
accounts for a large part of our CO2 emission. As it is difficult tocontrol the amount of wastes we receive from other companies
and reduce CO2 emission, we try to increase thermal recycling
through power generation using heat and steam from incinerating
those wastes.
We also use heat from incinerated wastes for destruction of
CFC that destroys the Ozone layer and alternative for CFC suchas HFC and PFC, which are the cause of global warming.

〈Derived from electricity〉
CO2 emission (1,000 t)

Basic unit (100 t/¥0.1 billion)

800

4.0

700

GL
3.0

600
500

MM
2.0

400
300

1.6

1.4

200

1.3

1.5

1.7

EL
MT

1.0

TH
HD

100
0

ES

0.0
2009

2010

2011

2012

Basic unit

2013
(FY)

〈Derived from fossil fuel〉
CO2 emission (1,000 t)

Basic unit (100 t/¥0.1 billion)

400

4.0

300

3.0

200

2.0

100

1.0

GL
ES
MM
EL
MT

0.9

0.8

0.8

0.7

0.8

0

HD
0.0

2009

2010

2011

2012

TH

Basic unit

2013
(FY)

〈Derived from wastes only in Japan〉
CO2 emission (1,000 t)

Our CO2 Reduction Efforts in 2013

Basic unit (million t/¥0.1 billion)

700

7.0

600

6.0

GL

500

5.0

ES

400

4.0

300

3.0

200

2.0

TH

1.0

HD

0.0

Basic unit

100

1.4

1.3

1.4

1.3

1.4

0

We changed the type of fuel and introduced LED lighting forour equipment and facilities. We stopped a new capital investment
and reduced the temperature of air conditioning to save energy.
We made a modal shift to railways and ships that emit less CO2.
We also tried to collect and deliver products more effectively.

35● Conversion of fuel for equipment fromheavy oil to natural gas

Amount of CO2 reduction
116t/year● Replacement of compressors to new ones
to reduce the number of compressors used

Amount of CO2 reduction
7,600t/year● Energy saving by recovering heat fromincinerated wastes

Amount of fuel reduction
37.9 kl/year● Increased cooling efficiency of air cooling chillers by sprinkling water

Amount of CO2 reduction
8.6t/year

2009

2010

2011

2012

MM
EL
MT

2013
(FY)

Note: CO2 is calculated by multiplying grid-purchased electricity, fossil fuelconsumption and amount of accepted waste by emission factor set forth in the
Act on Promotion of Global Warming Countermeasures. However, CO2 emission
derived from accepted waste does not always correspond to the value submitted toadministration authorities, because part of the prerequisites used in the method for thisreport differ from that for the reports to administration authorities. As segregation ofwaste differs between Japan and other countries, it is difficult to set a proper emission
factor to such emission. Therefore CO2 emission derived from waste shown here are
only from our business entities in Japan.

Utilization of Renewable Energy
The DOWA group is aggressively promoting use of renewableenergy that has less environmental burden as well as energy
saving and conversion of fuel as part of global warming measures.

Renewable energy is produced from natural power and byeffective use of disposed energy. This enables reduction of fossil
fuel usage and CO2 emission.

■ Power generation from wastes
Power generation from wastes effectively utilizes wasted heat. Heat generated
when wastes are incinerated is used to generate steam and in turn steam run turbines
to generate electricity. It is an excellent system to reduce consumption of fossil
fuel such as oil, resulting in reduction of CO2 emission. Four business entities inJapan and one outside Japan are engaged in power generation in the DOWA group.
Amount of electricity generated from wasted heat increased by approximately 20%,amounting 74.3GWh compared to previous year in 2013.

74.3■ Hydraulic power generation
This utilizes water flow to generate electricity, and is purely a domestic energy
with less environmental burden. Kosaka Smelting and Refining started power
generation in 1879 to produce gold, silver and copper. Kosaka has six hydraulicpower plants in Akita Prefecture now. Power generated in 2013 increased byapproximately 13%, amounting to 67.8GWh compared to previous year. These aremajor power sources of smelting business of DOWA.

67.8■ Solar power generation
Four companies of DOWA implemented the solar power generation system
in Japan. The total power generated by these four companies is approximately
300MWh in 2013. Despite the fact output from the solar power generation system isdependent on weather conditions, output can be visualized in a display, thus, helping
to raise employees’ awareness of energy-saving and to enlighten visitors on global
warming and energy issues.

300

GWh

GWh

MWh

■ Biodiesel
Biodiesel Okayama recovers used cooking oil from homes, convenient stores,
restaurants and food manufacturing plants and produces BDF (Biodiesel fuel) jointlywith Okayama City. The fuel is used for garbage trucks and buses of Okayama Cityand trucks and forklifts within the premises of DOWA companies as alternative fuelfor diesel oil, contributing to CO2 reduction. The quality certification system of the
Zenkoku Biodiesel Nenryo Suishin Kyogikai (National Biodiesel Fuel Promotion
Council) recognized that the BDF of Biodiesel Okayama is of top quality.

Evaluation from Society“Okayama Environmental Grand Prize” Awarded to Biodiesel Okayama’s Initiative
Biodiesel Okayama received the Okayama Environmental Grand Prize for the field ofpromoting to build resource-recycling society in October 2013. The reason of the award
is as follows: Its initiative to convert used cooking oil to biodiesel fuel contributed tobuilding resource-recycling society; and its active environmental education program
helped to enlighten people on importance and mechanism of recycling.

36

Environment
Promoting Resource-Recycling
The DOWA group is committed to contributing to build a sustainable society by restricting consumption of natural
resources and promoting recycling of used resources.
○ INPUT〈Raw material〉The amount of raw materials used in 2013 is 1,006,000 t,
increase by 6% compared to previous year.
Raw materials (1,000 t)

Basic unit (100 t/¥0.1 billion)

1,200

6.0

1,000

5.0

800

4.0

600

3.0

2.4

400

2.0

2.3

2.2

2.3

2.0

GL
ES
MM
EL
MT
TH

200

1.0

HD

0

0.0

Basic unit

2009

2010

2011

2012

2013
(FY)

〈Accepted wastes〉The amount of accepted wastes in 2013 is 1,122,000 t, an
increase of 9% compared to previous year. This is attributable to increaseof accepted wastes of Eco-System Chiba and Eco-System Hanaoka.
Accepted waste (1,000 t)

6.0

1,000

5.0

800

4.0

3.6
600

3.0

3.0

2.7

2.5

2.5

400

2.0

0
2009

2010

2011

2012

ES
MM
EL
MT

1.0

HD

0.0

Basic unit

2013
(FY)

5%

5%
3% 4%

Water intake from in-house resources
Sea water

Water
resource input

103

million m

River water
Underground water
Other

3

87%

Purchased water
Clean waterIndustrial water● Expansion of usage of raw materials
smelted in-house for iron manufacturing

Reduction of usage of coke by 7%
Reduction of purchased raw
materials by approximately 16%● Reduction of variation of plating thickness Reduction of raw material for tin
by approximately 2%● Recycling of face milling and shaping
scraps

37

7.0

GL

300

6.0

ES

250

5.0

MM

200

4.0

EL

150

3.0

MT

100

2.0

TH

1.0

HD

0.0

Basic unit

1.2
2009

0.9
2010

Increase of recycled materials by
1,837 kg

0.7

0.7

2011

2012

0.9
2013
(FY)

〈Waste〉The amount of wastes produced in 2013 is 517,000 t, 5%
decrease from previous year.
Waste produced (1,000 t)

Basic unit (100 t/¥0.1 billion)

800

4.0

600

3.0

400

2.0

GL
ES
MM

200

1.9

1.7
1.3

1.1

EL
MT

1.2

1.0

TH
HD

0

0.0
2009

2010

2011

2012

Basic unit

2013
(FY)

〈Discharged water〉Total discharged water in 2013 is 104,000 t, 7%
increase from previous year. It is caused by the increase of discharged
rain water as a result of increased rainfall. It is also attributable to theincreased use of sea water for cooling in connection to the increase zincproduction.
Discharged water (million m3)

Basic unit (Million t/¥0.1 billion)

125

5.0

100

4.0

3.4

3.0

2.6

Resource Saving and Recycling Efforts in 2013
● Thorough operation control

8.0

350

75

95%

Basic unit (100 t/¥0.1 billion)

400

0〈Water resource〉Water resource input in 2013 is 103 million m3,
decrease by 2% compared to previous year. The top water usage is
cooling water, accounting for approximately 87% of the entire water
usage. Sea water is used for cooling. Fresh water usage accounts forapproximately 13 % of the entire water resource input. Fresh water isused for production and clean water.
1%

Material recycling (1,000 t)

GL

TH
200

〈Material recycling〉The amount of material recycling in 2013 is374,000 t, a dramatic increase by 29% compared to previous year. The
material recycled within the DOWA group accounts for 156,000 t, whilethat outside the group accounts for 218,000 t. It is mainly due to theincreased soil recycling and recycling of used oil.

50

Basic unit (100 t/¥0.1 billion)

1,200○ OUTPUT〈Products〉Products manufactured in 2013 is 569,000 t, 4% increase
compared to previous year. It is attributable to increased shipment ofzinc and processed zinc products.

2.6

50

2.3

2.3

1.0

0

0.0

2010

2011

2012

2013
(FY)

ES
MM
EL

2.0

25

2009

GL

MT
TH
HD
Basic unit

Expanding into Eco-friendly Products and Renewable Energy Fields
The FIT (Feed in Tariff) system started in Japan in 2012 for the purpose of expanding the use of renewable energy
including solar power, wind power or biomass. This system has been steadily propelled implementation of solar and wind
power generation.
The DOWA group is committed to spreading renewable energy by providing products and technologies for various
equipment in the field.
○ Metal Ceramic Printed Circuit Board (PCB) by DOWA
DOWA̓s metal ceramic PCB circuit board is an insulating substrate for semiconductor devices that
effectively control electricity. Our product is reliable with excellent insulation and heat dissipation
properties and used widely for pressure resistant power modules used in industrial machinery. Power
modules used for wind or solar power generation require better performance. As such, we endeavor tomass-produce products with high pressure resistance and reliability such as substrates integrated withaluminum bases to respond to expanding demands.

DOWA’s Eco Products Contributing to Environmental and Energy Fields
We are trying to develop materials that contribute to reduction of environmental burden and improve their technologies across theentire supply chain so that our client companies manufacture products that use our materials; and thereby realizing energy saving,
resource saving and hazardous substance-free society.
〈Nitride-based HEMT epitaxial substrates〉
Material for power semiconductor devices
Applications
Environmental performance

Power supply of home electric appliance, server and hybrid car
Energy saving, electric resistance lower than silicon-based substrates
and power loss control of one third.

〈Deep ultraviolet LED〉
LED that can output deep ultraviolet of 350 nm or less
Applications
Environmental performance

Resin hardening, adhesion, drying, medical treatment, analysis, photocatalyst or water purification
Energy saving, high efficiency, long life cycle, reduction of hazardous
substances (lead-free) and wavelength (300nm or less) to realize disinfection and sterilization of water or material surface efficiently〈MR (laminate) LED〉
High output infra-red LED chips with a bonding technology that bonds a highly functionalized epitaxial
thin film substrate consisting of several tens of crystalline layers in a nanometer order to the substratewith a metal reflection part.
Applications
Environmental performance

Proximity sensors for smart phones
Energy saving/less power consumption by high output

Evaluation from Society
The Harunari Inoue Award for Nitride-based HEMT Epitaxial Substrates
The nitride-based HEMT epitaxial substrates developed by the Semiconductor
Business Unit of DOWA Electronics received the Harunari Inoue Award* in July
2013. DOWA Semiconductor Materials Laboratory developed the substrate as
material for power semiconductor devices, based on the joint research with Professor
Egawa of Nagoya Institute of Technology. Akita Semiconductor succeeded incommercial production. All those achievements are the reason for this award.
The power semiconductor devices using the nitride-based HEMT epitaxial
substrates are the core parts of eco-friendly home appliances and eco-friendly cars toenable reduction of power loss and contributing to energy saving.

*Harunari Inoue Award: This award is to recognize scientifictechnologies that are developed and commercially producedby business entities, based on the research and technologies
developed by research institutions such as universities. The
award is given twice a year.

38

To Carry out Responsibility as a Cooperate Citizen

Society

The DOWA group enhances the relationship with society through CSR activities, aimed at being a company trusted by all stakeholders. We believe it
important that not only each of our business entity but also each employee of
DOWA is aware of his/her responsibility as a corporate citizen. We also regard
that promotion of activities in local society is one of our focus fields.

CSR Policy P romoting social contribution considering unique characteristic of each local community together with local
peopleProgress of Activities
Society/Goals ofSociety

Following is the progress of our social activities and issues in 2014.

FY 2013
Evaluation*

Main results

IssuesTargetPromoting employment ofelderly peopleA●R evision of the re-employment system to hire
experienced retired employees for them to work withmotivation across the group.

To offer information on life planning
after retirement (Holding seminars)

Number ofreemployedpersons

Promoting employment of
disabled peopleC●Implemented measures to achieve the legally stipulated employment rate

To implement the plan to promote
employment of the disabled

Progress rateof plansA●Prepared and published an action plan to support for
fostering the next generation●Raised awareness of the childcare program●Promotion of joint efforts of labor and management
to reduce working hours and thorough managementof working hours by introducing a new system

To promote implementation of theaction plan to support for fostering thenext generation

Progress rateof plansA●I mplemented the questionnaire to the newly employed.
●Implemented initiatives to increase the number of
employees to take paid leaves such as scheduledannual leaves.

To increase the number of employees
to take paid leaves such as scheduledannual leaves

The numberof employees
who took paid
leavesContribution to
local communities

Promoting social
contribution, reflecting
unique characteristics ofeach local community

A●Collected information on contribution to local communities in the business entities outside Japan●Holding and operating events with local communities(Marathon, ski competition, cherry blossom festival)

To conduct interviews in our business
entities outside Japan and support for
local contribution activities in thebusiness entities outside Japan
To continue to promote events withlocal communities

Survey on
business
entities
outside Japanand thenumber ofvisits there

Promoting in-house
CSR education

Improving in-house portalsite

A●Published E-mail news
●Posted explanation on focus measures of CSR (CSR
procurement or safety labor, etc.)

To expand CSR education
To improve in-house portal site
To use group news letter

Frequency of
renewalPromoting diversity
management

Promoting work-lifebalance

Measures

FY 2014

Preparation of an action plan
to support for fostering thenext generation*Evaluation: A+: More than expected, A: accomplished, C: Not Satisfactory, D: Not Accomplished

Promoting Diversity
We reviewed the existing system toreemploy the retired and experienced employees and changed a flat wage system toa wage system according to job rank. We
believe the new system will better serve interms of skills of each employee. We arecommitted to improve the system so thatthe retired and experienced employees candemonstrate their skills again.
Employment of disabled people increased in the DOWA group; however, it
has not reached the legally stipulated rate.
We will review the issue and consider more
effective measures.

Promoting Work-life Balance
We formulated a new action plan tosupport for fostering the next generationin 2013. As mentioned above, the new39plan contains plans to raise awarenessof existing support system and stricter
control of working hours. We implemented
the questionnaire to the newly employedon what system they want to take suchas volunteer vacation or flex time or
how easily they can take leaves. We will
introduce new systems to balance workand life of employees and promote thoseinitiatives.

Contribution to Local
Communities
We held various events with local communities, including a marathon, a cherry
blossom festival in Okayama Prefecture
and a junior cross country ski competitionin Akita Prefecture in 2013. Many people
participated in these events. We also conducted a survey and collected informationon the present status of social contribution

activities of our business entities outside
Japan. Our CSR Department conductedinterview in our business entities outside
Japan and extend support for social contribution according to unique local culturesand characteristics in each country.

Promoting In-house CSR
Education
We tried to publish our policies, related
laws and our initiatives on our website
in 2013. We will deliver CSR education
on international standards such as Global
Compact and ISO26000 and other topics
such as CSR issues in the supply chain. In
addition to offering information, we aim
at raising awareness of each employee
on concepts and initiatives on CSR by
expanding bidirectional educational opportunities.

Social Contribution outside Japan
Society

Focus Measures

DOWA started mine development in more than twenty countries outside Japan in the 1920’s. This was
DOWA’s first business deployment outside Japan. DOWA has continued business activities aggressively
outside Japan, responding to changing markets and users. We have been expanding our business focusingon Asian countries who enjoy high economic growth, including China and South East Asia, especiallysince 2000. Survival and growth of DOWA’s business depend on sustainable development of thosecountries and regions where DOWA’s business entities are located. As such, we try to resolve social
problems that those countries and regions face in cooperation with local communities.

Local Contribution of Waste Treatment and Recycling Plant in Thailand
Eastern Seaboard Environmental Complex (ESBEC) is
engaged in waste treatment and recycling business of used oil
and classification of valuable resources. This DOWA’s final
treatment site meets the standard of US EPA (Environmental
Protection Agency). The Complex conducts safe and stable
operation as a facility considering environment around the siteby completely processing effluent, recovering methane andpreventing odor.

Major Local Contribution Activities in 2013
ESBEC participates in the local community as a corporate citizen and believes it an important social responsibility tocontribute to development of the local community through communication. Through various types of relationship with local
stakeholders, ESBEC supports children who will play an important role in the next generation, and is aggressively propelling
activities related to local contribution, emphasizing environment and health field that has a close connection to its main business.

Education fund
Provided financial support to an education fund to
dispatch sufficient number of teachers to three local
schools.

Environmental education
Offered environmental education through plant
visits and held an art event to make an eco-bag.

Communication with local community
Held many dialogue sessions and plant visits by
local people to deepen their understanding andpromote communication with them.

Scholarship
Offers scholarship to six local elementary and juniorhigh schools to support for poor children to takeschool education.

Recycling
Donated segregation garbage boxes to promote
recycling in schools.

Hygiene activities
Conducted sterilization and cleaning of school
facilities on a voluntary basis to improve hygiene
environment of schools.

40Society
Relations with Society
The DOWA group promotes communication with major stakeholders including our customers, shareholders, investors,
partners, local people and employees using various tools in each business entity and department.

The DOWA group endeavors to contribute to realization of a better society and also making
good relationship with our customers through our products and services. We strive to improvesatisfaction of our customers by providing products and services of high quality.

Our clients are assemblers who assemble
parts and components as end products or【Technical Areas and Element Technologies of the DOWA Group】
In our business management policy we set forth that we positions our cutting-edge technologies
as the main driving force of our business. We seek for technologies that strengthen our competitiveness. We believe that R & D is one of the most important corporate differentiation strategies.

Device design

Crystal growth

Surface treatment

Magnetic property
control

Nanoparticle

Semiconductormaterial technology

Functional material
technology

Electronic material
technology

Textual control,
composition control
Alloy design

Metallic material
technology

Heat treatment
technology

Material improvement

Rolling process

Plating

Atmosphere control

Heat dissipation
control

Evaluation from Society
The Japan Institute of Metals and Materials Technical Development Award Received
products selected among applicants who
The technology center of DOWA Metaltsubmitted articles on their new technoloech received the Technical Developmentgies and products. This control technology
Award by the Japan Institute of Metals andof texture is an important technology toMaterials for “Development of the Technolimprove trading-off properties to achieve
ogy to Control the Texture of Precipitation
strength versus workability required forHardening Copper Alloy” in September
copper alloy used for connectors of elec2013. The institute is one of the largest intronic parts.
Japan for materials. Every year this award
is given to excellent new technologies and41

Oxidation, reduction

Chemical analysis

Soil remediation anddissolution of iron powder

Surface analysis

Waste treatment
geological reconnaissancePowder property
evaluation

Environmental
technology

Environmental
analysis

Hydrometallurgic Process(electroanalysis)

Equipment designand construction

Pyrometallurgical Process(Melting and forging)

Analyticaltechnology

Device design
and production

Smelting
technology

Process development

Production
technology

System design,
electricity control○ Contact and Response toComments and Opinions
We make improvement responding immediately to opinions and comments fromour customers and strive to offer productsthat satisfy them. We put the information
sharing and management system in place,Technology

Recycling○ Technology Center
Products provided by DOWA range fromsmelting to powdering, plating, semiconductor, heat treatment and recycling. We
must respond to defects, improve qualityand develop new products with high levelevaluation technology to maintain top classquality in each area mentioned above. For thispurpose, we have a technology center withineach business entity with advanced analyticaland evaluation facilities and human resources
to conduct chemical analysis, surface analysis
and physical property evaluation.

those who manufacture parts and manufactures who manufactures components
required for assembling. We endeavor toprovide technology in advance of needsfrom our clients, looking ahead of future
markets of our clients and future needs ofconsumers.

Disassemblingand refining

The DOWA group positions “quality” as
the core of our business in manufacturing
products. The group’s major plants obtained
the ISO9001 certificates, the international
standard on quality management system.
We endeavor to improve quality of products
and services by continuously operating thisquality management system based on PDCA
(Plan Do Check Act).

classify, analyze and evaluate informationcollected from each entity for improvementand development of products and services.

Fine powder
control

Quality control

Nano-composition

Togetherwith ourcustomers

Together
withourstockholders
andinvestors

The DOWA group recognizes that explaining corporate and business management information
to our stakeholders including shareholders and investors is one of the important points in termsof our corporate governance and we are committed to timely and proper disclosure of theinformation.
Our management holds results briefings on quarterly basis. We also offer opportunities tocommunicate with both Japanese and international investors directly on our business information.
We try to make proper and highly transparent disclosure of information, by publishing our annual
report and IR reports in Japanese, English and Chinese.

○ General Shareholders’ Meeting
The DOWA group holds a general shareholders’ meeting in June at
the Four Seasons Hotel Chinzanso, Tokyo every year and approximately
500 shareholders attended the meeting in 2013. After the meeting wehold a party so that we can better communicate with shareholders andthey can talk to our directors. We have a booth at the venue exhibiting
our products.
○ DOWA HD website (IR Information)
http://www.dowa.co.jp/jp/ir/
Information on DOWA Holdings is posted in this website in aneasy-to understand way to our shareholders and investors.

Continuous
support for
the Great
Eastern Japan
earthquake

The DOWA group set up a Great Eastern Japan earthquake reconstruction team in Sendai City
in May 2011 as part of our support initiative for the earthquake and has been supporting disposal
and decontamination of wastes from the disaster. Each business entity continues support activities
in 2013. Following are some of the examples:○ Support for the Mobile Library Project with Our Original Eco Bag
The DOWA group supports activities of the Shanti Volunteer Association that operates mobile libraries in areas affected by disaster.
These mobile libraries deliver books and provide opportunities forcommunication to the temporary housing in Miyagi Prefecture andFukushima Prefecture in addition to the drastically affected area
along the coast of Iwate Prefecture. The DOWA group delivers a CSR
report to shareholders in an eco-bag at the Annual General Meetingof Shareholders every year, so we used these original eco-bags for thevisitors to put the borrowed book from the mobile libraries, Part of theexpense for production of these eco-bags were donated.

○ Support for the Great Eastern Japan Earthquake Miyagi
Child Raising Fund at the In-house Bazaar.
E&E Solutions, Inc. has been supporting reconstruction fromthe earthquake since 2011. All employees participate in the support
activities for the affected people with their own initiatives. In 2013,
they brought in used books and held an in-house book bazaar for
two days. They gathered more than 500 books for the bazaar andmany employees visited the bazaar. The money was donated to the
Miyagi Child Raising Fund together with the monetary donationfrom the company for orphans from the earthquake.

DOWA グループは[エコバッグ]を通じて東日本大震災の復興支援を行っています

実施主体：公益社団法人 シャンティ国際ボランティア会

図書活動を通じた東日本大震災被災地支援
移動図書館プロジェクトは、仮設住宅に住む人たちに本と接する機会を持ってもらおうと、岩手、宮城の沿岸部、福島の仮設住宅を中心に巡回して図書の貸し出しを行う（社）シャンティ国際ボランティア会の活動です。
移動図書館を仮設住宅に住む方々の交流の場として提供し、さらに現地書店での書籍購入や司書の雇用など、自立的な復興に配慮して活動を行っています。

DOWA のエコバックは、図書の貸し出しに使用されるほか、製作費用の一部が移動図書館の運営費に役立てられています。
DOWA グループ従業員によるボランティア宅本便（不要になった書籍や CD を持ち寄り売却して寄付）を通じた支援活動も行っています。
⇒ CSR 報告書 P.24

42

Society
Togetherwith local
communities

The DOWA group positions contribution to local communities as a focus measure in our
relationship with society. Every business establishment both in and out of Japan are actively
participating in CSR activities including: participation in local get-togethers for communicationand tree planting festivals, sponsorship and support for sports events, accepting visitors and interns
to our plants, sponsoring various sports events, aimed at growing together with local communities.

○ Our Activities in 2013
Sponsoring Local Events
July	The seventh Kosaka Household Town Afforestation Planting Ceremony and the “Akita Northern
Happinets” basketball clinic (Akita Prefecture)
November

The 3rd Kojima Lake Blossom Corridor Exciting Health Marathon (Okayama Prefecture)

February	The twenty-fourth DOWA Cup Jr. Cross Country Ski Competition at Lake Towada (Akita Prefecture)
March

The 5th Kojima Lake Blossom Corridor Cherry Blossom Festival (Okayama Prefecture)
In addition to the above mentioned we take part in a wide range of activities rooted in local communities,
including: cleaning of public spaces, planting trees, cooperation with traffic safety campaigns, and voluntary
participation in local festivals and sports events by employees.

○ Corporate VisitsCompany visits by high school students
on their school excursion
Thirty-nine third graders of Kosaka Jr.
High School, Kosaka-machi, Akita Prefecture visited the headquarters of DOWA in
Tokyo in May 2013 on their school excursion. The educational goal of the school is
to, “grow up strong, spiritually rich, communicate with friends and nurture dreams.”
The school sends students on their school
excursion to companies where the graduatesof the school work to deliver a presentation
on a predetermined topic as part of its social
education. DOWA, being a locally oriented

company, was chosen for this in 2013.
After a briefing session and visiting
inside the building of the headquarters,
the students delivered the group presentation on the topic of, “How do we want tochange Kosaka-machi in ten years’ time?”
Their ingenious presentation was full ofideas to make their hometown better. Kosaka-machi was the place of foundationof the DOWA group. In addition to the
DOWA’s main plant of Kosaka Smelting
and Refining, many of our business entities
engaged in environmental and recycling
business gather there. We learned and were
stimulated a lot from those next generation

Evaluation from Society“Contribution to Beautifying Local Environment Award” to Kojima Blossom
Corridor Supporters Club
Bizen Citizen Bureau of Okayama Prefecture conferred the “Contribution to beautifying
Local Environment Award” to Kojima Blossom Corridor Supporters Club in November
2013. Planting Kawazu cherry trees (4,703 trees) and spider lilies (120,000 bulbs) together
with local people was recognized as contribution to environmental improvement along Lake
Kojima in Okayama City. We will continue those activities to beautify and revitalize local
communities through events such as the Blossom Corridor marathon race.

43

students who have concrete ideas on the
future of their town.
After the presentation, all students performed their original dance named “ONE”.
It was an excellent performance like a professional. A Hip Hop teacher of the school
choreographed the music composed by Mr.
Jiro Oma, a musician of famous Japanese
Pop group “Off Course”.
We will continue to accept visits of students as part of our support for school education to make students understand whatcompanies are.

Togetherwith ouremployees

The DOWA group sets forth in Standards of Conduct that human resources are the basis ofbusiness activities and employees should be evaluated with their ability to conduct their jobs
regardless of education, age and gender. We are promoting various activities with the following
goals so that employees can exercise their full potentials.
・Go back to the origin of organization function to create a competitive team.
・Make company a place where employees want to work, with their own initiatives.

Employment Status

capabilities necessary for our business.
As of March 31, 2014 we have total 5,411
employees, increase of approximately 100
persons compared to previous year. Of
those who were employed in Japan, 88%(4,397) are male and 12% (608) are female.

The DOWA group tries to promote
proper allocation of employees, considering
our business plan and employ diversified
human resources who have talents and

The number of employees outside Japan,
mainly in Asia, increased due to our global
business deployment. There was an increaseof approximately 100 employees involved
including those from Thailand and China.

〈Employment status in Japan〉
FY
Male

Classification
Regularemployees
in JapanNon-regular
employees
in Japan

2011

Directors

2012
Female123

Managers
Ordinary employees

Male

1

Female124

0Female

121

0

681

8

707

8

715

9

288

2,727

294

2,703

296

432
826

Total

Male

2,699

Dispatched employees
Part-time workers,temporary
workersand seasonal workers

2013

318
265

405

846

5,323

291

859

5,315

405

5,411

〈Number of employees per region〉
FY

Region

2011

2012

2013

Japan

5,323

5,315

5,411

Other Asian countries

1,325

2,520

2,622

Europe4

4

10North America

78

92

80

Central & South America

3

1

1

Total

6,733

7,932

8,124

Fair Evaluation and Treatment of Human Resources
Under the philosophy to evaluate employees based on their ability to conductbusiness as stipulated in Standards ofConduct, the DOWA group strives to evaluate and treat employees in a fair manner.
We make use of our evaluation system infostering employees under the following
policies.

● B oth an evaluator and an employee
should deepen understanding of the evaluation system and the criteria and makebest use of the system in evaluating andfostering employee development.
● Employees should share organizational goals and understand the skills andcapabilities required for each rank andimprove skills required for conducting
their jobs.
We offer training to newly appointed
managers as an evaluator this year andwe will try to promote proper evaluation,
treatment and fostering by continuously
offering training opportunities.

44

Society
Development and Utilization of Human Resources
The DOWA group aims at developing
professionals who can play an importantrole in global markets and establishinga corporate culture to foster and develop
human resources. In this effort, we en-

deavor to educate employees in each
workplace continuously, promote measures
to enhance On-The-Job Training (OJT)
programs for young employees and offer
opportunities for practical experience anddifferent job experiences (both planned
and adaptable personnel reshufﬂing) to ouremployees.

■ Main Achievements in 2012
【Education】○ Education according to work levels
Training to foster business leaders (16 persons for the period from April through December)・Next generation businessleader (On going)・Manager (On going)

Training for new managers (Approximately 30 persons) and coaching training(Approximately 30 persons for the period from October through December)・Mid-Career (On going)

Proactive (leadership) training for newly promoted employees to Grade 5 (Approximately
50 persons for the period from October through December)・Mid-Career Engineer (New)Strengthening the ability to think (7 persons for the period from October through August)・Employees up to the third yearof employment (Continued)

Training for newly employed (from April to the middle of May), I – IV follow-up training
and enhanced OJT (Approximately 130 persons)・Global (On going)

English presentation (Approximately 40 persons) and intensive training before being
dispatched (Approximately 10 persons)・Female career (On going)

Basic career training (21 persons)○ Exchange Program between Young Engineers and Universities
We prepared an exchange program between our young engineers and Tohoku University in the Functional Materials Laboratory
at DOWA Electronics Materials in July 2013. This program is offered every year, as a place for DOWA’s young engineers to
discuss with outside researchers and gain new knowledge and insight from a different angle. Approximately twenty engineers inOkayama district participated in this program this year and actively discussed and presented research results.

【Utilization of Human Resources】○ Career Matching System
We put the Career Matching System in place as part of our career support activities for our employees. Qualiﬁed employees canapply for in-house job opportunities directly without going through their supervisors or their own department.

Promotion of Diversity
Employees must respond diversified
values and make use of diversiﬁed strengths
to respond to global business deployment
and expanding business areas. We believethat employees with diversified talents
exercising their full potential will lead to thegrowth of a company. The DOWA group is
now propelling forward the following activities.
○ Consideration at the Time of
Recruitment
The DOWA group is now building aframework for employees to work on a
global basis regardless of nationality fromthe recruiting stage.
○ Active Utilization of Experienced
Employees
We reemploy experienced retired em-

ployees who want to continue working
in the DOWA group. We revised the reemployment system by newly adoptinga job rank system so that employees cancontinue to fully exercise their skills andcapabilities they have cultivated. In 2014
we will further improve the system, forexample, offering a seminar to provide
information on how to spend life after
retirement.
○ Employment of the Disabled
The number and the rate of employmentof the disabled both increased in 2013
across the DOWA group and some ofcompanies achieved the employment rate
stipulated by law; however the DOWA
group as a whole has not achieved the rate.
Our production sites are not built for thedisabled to work comfortably. Therefore,
we do not require each business entity of
DOWA to achieve the same rate equally.

Instead, we try to increase the employment
rate across the entire group by improving
environment for the disabled in business
entities that have already had those people
working or encouraging them to experiencea workplace.
60

2.0
50

50
40
30

41
1.2%

45

1.2%

1.5
1.3%

1.0

20
0.5

10
0
(person)

2011
2012
No. of the disabled
employed02013 (FY) （%）
Employment rate

45

P31-P48.indd

45

2014/12/08

12:13:02

Promotion of HealthWork-Life Balance

The DOWA group considers it important for all employees to enjoy an active
life both in terms of body and mind andhealth as the foundation of developing
human resources.

The DOWA group endeavors to improve
the workplace for employees. Our worklife balance program aims at helping all
employees to exercise their abilities to thefullest extent according to their life styleboth at work and at home. We implemented
a more flexible working system like flexible
working hours and leave of absence system
for raising children and caretaking of family
members.

○ Physical Examination
DOWA offers opportunities for employees to take periodic physical examinations and also subsidizes expenses forgynecological examinations for female
employees. We also strive to increase thenumber of employees’ dependents to takespecific physical examinations.
In 2013 we offered compensation for
the expenses for influenza vaccination.
○ Mental Health Initiative
The DOWA group has put the mental
health counseling in place and we haveeducated management on mental healthissues to protect the health of employees.
We are now considering to introduce asystem for each employee to check his/hermental condition by a self-checkup.

Working
togetherwith ouremployees’
families○ Utilization of the System
As a result of these efforts, users of thesesystems are increasing every year. In 2013,12 employees took child-raising leaves ofabsence and four employees used shorter
working hours for raising children. Ten
male employees and five female employees
took caretaking leaves for their children.
○ Action Plan to Support for
Fostering the Next Generation
We prepared a new action plan to support fostering the next generation in 2013.
In addition to legally stipulated systems,
we introduced specific support measures

such as paid leaves of absence for taking
care of sick children (up to five days) anda system to limit relocation of employeesthat results in moving from their present
residence if they have reasons related toraising children. In 2014 we will raiseawareness of the system so that more employees can use it.
We also try to reduce total working hoursof employees through strict control of working hours by promoting initiatives agreed
upon between labor and management andimplementing a new control system ofworking hours, in addition to the existing
system of flex-time working hours without
specified core working hours.
○ Questionnaire
The CSR Department conducts asurvey targeted for newly employed
every year. More than 40% wanted touse the flex-time system and a day forno overtime work in 2013, because theywanted to use their time more for theircareer development, including improving
language skills or obtaining qualifications.
We will continue to promote work-lifebalance, considering those opinions.

Family members of our employees are also DOWA’s important stakeholders. We plan plant visitsand events not only to notify our employees of CSR activities across the DOWA group but also for
their family members to deepen their understanding of the DOWA group.

○ Communication through an Ecoevent for Parents and Children
during Summer Vacation
The DOWA headquarters in Tokyo heldan eco-event for family members of employees in August 2013. Seventy-one (40children and 31 parents) participated inthis event from Akita and Kumamoto Prefectures and enjoyed a workshop called“Dream Factory” produced by an event
company, “Chemical Entertainment.” In
the workshop, children participated in anexperiment of air foams and made LED
lights turned on by wind power.
This event started as part of our environmental education activities where children of our employees visit the workplaceof their parents to gain insight on environment and also to raise environmental
awareness together. Every year the CSR
Department plans an event related toenvironment such as biodiversity and recycling. We enjoy planning and operationof such events.
We will not only hold such events in

the headquarters but also encourage ourbusiness entities outside Tokyo to holdsuch events.

46

Questionnaire Results
Comments, Opinions & Requests for the DOWA group’s CSR Report 2013

We distributed our CSR reports toour stakeholders including shareholders,investors, partners, customers and local
people at the general shareholders’ meeting, exhibits and environmental events.

In addition, we also post all of our CSR
reports published so far on our website.
The DOWA group conducted a survey
to ask comments and opinions from thereaders of our CSR reports. We reflect

them and the opinion of a third party
expert of last year in preparation for thisreport as follows.

7%

Comments and Opinions for the Questionnaire
Customers and partners

We received many valuable comments and opinionsfrom readers and we appreciate those replies verymuch. Following are those comments and opinions(overall comments were summarized).

33%

Shareholders and investors

27%

Status of those

People who live near DOWA’s
business entities

who commented

DOWA’s employees and their family
Other comments

13%○ About our CSR report 
Not enough

Short

Enough

9%

8%

91%

Fair

20%

Difficult to understand
8%

Long

15％

Easy to understand61%

0%Richness ofthe content

LengthExplicitness(number of pages)

Appropriate
77%

Fair
31％

Compared to the previous year

○ What is Expected from Our Efforts for CSR 
2%

2% 2%

2%

22%

10%
10%

〈Overall comments〉
・I can see the image of recycling business vividly
in the pages that illustrate eco-products.
・I’m impressed with your all your efforts in addition to your main business.
・I want you to combine the report with the business report.

Fostering human resources
22%

14%

Resource and energy saving
Workplace safety, work-life balance

Expected
efforts

14%

Promotion of recycling
Development of products and services usefulfor environment and society
Prevention of environmental contamination

Global warming measures
Biodiversity, conservation of ecosystem
Ethical, transparent activities, disclosure of
information
Respect for human rights

Main Improvements in CSR Report 2014, Reflecting Comments from Our Stakeholders
We edited CSR Report 2014, reflecting the valuable commentsfrom our stakeholders.
■ From Questionnaire Results・I have difficulty focusing on which items to read.
・More specific description is necessary on the focus measures.
⇒We changed the structure of our CSR report this year todescribe our activities per area of our CSR Policy and tried
to be more specific on the focus measures.

■ Third Party’s Opinion
・Only titles are stated for Goals and are not specific goals⇒In 2014 a new column title of “Target” is added per issue infour areas of “Governance”, “Safety”, “Environment” and“Society”.
⇒We added examples of our philosophy and initiatives in
Relationship with Central and Local Governments andIndustrial Groups on P. 24.

We will review thoroughly your comments and opinions on our CSR efforts and reflect them in our CSR activities.

47

Opinion of a Third Party
DOWA CSR Report 2014
About the CSR Report 2014
President Yamada explained in Message from the Management that DOWA’s business has
evolved into a unique resource-recycling company consisting of five core business areas, responding
agilely to changing external environment. The DOWA group continues to achieve increased revenue
and profit as he mentioned. I presume the company does meet diversified needs for building a
resource-recycling society through its business in the age when depletion of resources is anticipated
as a result of worsening pressures of world population.
I think a characteristic of the CSR report this year is the description of DOWA’s approach tosocial issues related to effective utilization of resources on the page titled as “DOWA’s Business andSocial Issues.” However, it was positioned only as one of many features last year. I can see DOWA’semphasis on CSV (Creating Shared Value) this year, where a company contributes to resolving social
issues, while it connects its contribution to profit making. I am certain that more detailed explanation

Chief Executive, E-SQUARE

Hiro Motoki
E-SQUARE Inc. is a consulting company, aimed
at realizing a sustainable society by supporting
strategic CSR and environmental managementof companies. The company supports manyleading business establishments in the fields ofstrategy, communication, education and BoPbusiness in developing countries. Mr. Motoki
assumed his office of Chief Executive in October
2011. He has been working as a special lecturer
for the Graduate School of Environment Studies,
Tohoku University since 2005 and also is afrequent lecturer on CSR.

of the relation between its business and social issues will further promote reader’s understanding of
how much DOWA is needed in society and that DOWA is a vital entity in society.
Another characteristic is the reorganization of main achievements in 2013 and the entire structureof the report according to four areas of CSR Policy. This way the CSR activities that the DOWA
group propels are presented in a more consistent way than before. Reorganization made the report
simpler and easier to understand.
As for DOWA’s measures per topic, responding to conflict minerals is requisite as a company
engaged in mining in the upper stream of the value chain in society. The DOWA group set up“DOWA’s Conflict Mineral Management Policy” and has worked to obtain CSF Certificates asa conflict-free smelter. Those are extremely important steps forward in conducting sustainablebusiness.
The DOWA group is engaged in various other activities in each business field. Among others, itis worth mentioning that DOWA Metals and Mining succeeded in obtaining their raw materials fromthe tailings of mineral ores to recycling materials for the first time in the world.

Towards Further Improvement
The list of achievements are far easier to read than last year, as goals, measures and achievements
are clearly separated and described. However, only titles are listed for goals. I think more detailed
description is necessary, listing specific points to be reached by DOWA.
It says that the CSR Procurement Guideline will be prepared in the future as a focus measureof CSR Procurement Policy. On the other hand in the CSR Procurement Guideline, it says, “We
promote procurement, based on the DOWA group’s CSR Procurement Guideline.” It seems thatthe guideline is already put in place and misleading. I also think it better to mention something on“DOWA’s Conflict Mineral Management Policy” in the CSR Procurement Guideline. I believe thatit desirable to report how the CSR Procurement Policy will be implemented specifically in the CSR
Procurement Policy.

My Expectation to DOWA’s Initiatives in the Future
The DOWA group will review the mid-term goals of CSR and focus measures in 2014 and I am
looking forward to their progress. I can see DOWA’s approaches to social issues and also awarenessto connect them to revenue, through messages from managers and persons in charge in each business
entity. I assume that support from those employees on site is the present strength of DOWA. I
sincerely hope DOWA continues to pursue business development, by facing social issues directly.

48

Towards the Realization of a Resource-Recycling Society

CSR REPORT 2014
＊This report uses forest-certified paper and eco-friendly soy ink.