FDK Group

Sustainability Report2023

Contents
Business Philosophy/Table of Contents........................... 1

Our Philosophy

Inspiring transformation;
shaping the future and creating happiness.
FDK Group’s Vision

Shibaura Crystal Shinagawa Bldg.,
1-6-41 Konan, Minato-ku, Tokyo 108-8212 JapanFDK Group, as a Smart Energy Partner,

General Affairs and Human Resource Department, Corporate Headquarters
Tel: +81-3-5715-7400 Fax: +81-3-5715-7401
E-Mail: csr@fdk.co.jp

assemble advanced technologies,

would like our customers to best utilize electricenergy in a safe and efficient manner,and contribute to materialization anddevelopment of sustainable society.

Editorial Policy
FDK has published the FDK Group CSR Report since 2017 so that all of its
stakeholders will understand its various activities based on the CSR Policy of the
FDK Group.
From this fiscal year, we are publishing a new “Sustainability Report” based on our
Basic Sustainability Policy, centering on the FDK Group Approach to Value Creation
and “Five Prioritized Initiatives.”
Target Period
This report focuses on activities during FY2022 (April 1, 2022 to March 31,2023). (Some information is included outside of this period.)
Scope
This report covers activities for FDK and the FDK Group. Some of the report is
specific to FDK.
Reference Guidelines
The FDK Group Sustainability Report 2023 has been created by referring to ISO
26000 Guidance on Social Responsibility, the Environmental Reporting Guidelines,
etc.

Top Message................................................................ 3
History.......................................................................... 7
Financial and Non-Financial Highlights.............................. 9

The Story of Value Creation at the FDK Group
Approach to Value Creation............................................ 11

Mid-Term Business Plan and Materialities.................... 13
Product Information...................................................... 17

Sustainability Management........................................... 21
Five Prioritized Initiatives.............................................. 23
Health Management..................................................... 27

Management System
Strengthening Corporate Governance........................... 29
Ongoing Operation of Internal Control Systems............. 30
Ensuring Compliance.................................................. 31

Relationships with Customers and Suppliers

ISO 26000 (Core Themes) Icons
FDK Group

Our Offerings.............................................................. 33

Sustainability Report

Quality Assurance Activities............................................ 35

Governance

Human Rights

Labor PracticeEnvironment

2023

Fair Trade

Consumer Issues

Community

Contact
General Affairs and Human Resource Department, Corporate Headquarters
Tel: +81-3-5715-7400 Fax: +81-3-5715-7401
E-Mail: csr@fdk.co.jp

Relationship with Society
Communicating and Collaborating with Stakeholders..... 37
Contributing Activities for Local Communities and Local
Residents................................................................... 38

Relationships with Employees
Embracing Diversity and Inclusion................................ 39
Developing Human Resources for Their Contribution to

Smart Energy PartnerSociety and the Planet.................................................. 41

Environmental Conservation Activities
Protecting the Global Environment.................................. 43
Overview of Group Companies....................................... 47

SDGs (Sustainable Development Goals)
Successors to the Millennium Development Goals (MDGs) put forward in
2001, the Sustainable Development Goals (SDGs) were adopted at theUnited Nations Summit of September 2015 and comprise internationaltargets to be achieved from 2016 through 2030. They are composed of 17
goals and 169 targets for achieving a sustainable world.

1

FDK GROUP SUSTAINABILITY REPORT 2023

FDK GROUP SUSTAINABILITY REPORT 2023

2

Top Message

Achieving sustainability
management throughthe practice ofan “And Game”
10 Years’ Scheme and Business Philosophy
It has now been five years since I assumed the position of President. My firstundertaking upon doing so in 2019 was the formulation of our 10 years’
scheme.
This scheme declares our goals for the company in 2029 as our “Vision,”and the conditions under which these are achieved as our “status-to-be.”Behind this lies an awareness of the problems the company was facing
when I became President. Despite the FDK Group’s numerous technologicalassets and excellent human resources, I believed that they were not being put
to the fullest use. I felt that in order to unlock the Group’s true potential, it wasvital that all employees share a new banner and a set of goals to aspire to. To
this end, I listened principally to what the management team, which ties
together each of our businesses, perceived as problems and what theywanted to do about them, thereby consolidating the content of the Vision.
Although I was the one who finally put it together, the meaning of every word
and phrase was discussed within the company, selecting and discarding
particular elements to produce the final result.

participation. The discussion was divided into several groups, including amanagement group, a group of senior employees, and a group of younger
employees, each of which developed several candidates. The winningcandidates from each group were voted on by all employees, and the lastremaining candidate was selected as the business philosophy.
The event took about six months before a final decision was made, but what
was finally chosen were the wonderful words “Inspiring transformation; shaping
the future and creating happiness,” a philosophy that incorporates many
opinions from the younger generation. I think it is a fantastic phrase, perfectly
encapsulating what we have been doing and what we want to do from now on,
as well as resonating with our Vision.
The status-to-be of the FDK Group: Our offerings
We are adding various functions and features in addition to the reliability,
safety, and environmental conservation that we have always offered, thereby
achieving a wider range of applications and meeting an increasingly diverse
range of customer needs.
Next-Generation BatteriesCompact

If the Vision is a beacon marking our final destination, the “status-to-be” isa tangible definition of how much of what we will be providing to whom whenHigh durability

Long life

the Vision is achieved, as well as the levels of profit and sales generated. With
this as our goal, the nine years from FY2020 have been divided into three
Mid-Term Business Plans. R1, the first of these plans, reached completion in

FDK CORPORATION President & CEO

Ryo Nagano

March 2023, and R2 just began in April.

Reliability

Safety Environmental
conservation

develop a new business philosophy. Although FDK has been in business forwhat a momentous task this was, it was decided to emphasize employee

FDK GROUP SUSTAINABILITY REPORT 2023

Batteries/Engineering & Electronics

Around the time the 10 years’ scheme was formulated, we also decided tomore than 70 years, until now it has had no official business philosophy. Given

3

High
capacity

Battery life
prediction

Rapid charging
Co-CreationHighoutputSolutionspackages

Power Management
Solutions

FDK GROUP SUSTAINABILITY REPORT 2023

4

Top Message
Looking Back on the R1 Mid-term Business Plan

However, we recognize that strengthening resilience to cope with unforeseen

evaluation, competency evaluation for individual positions was introduced. For

The first of the three-year plans making up the nine years to realize our Vision

events is an issue to be addressed going forward.

each position, there is an ideal CEO profile and an ideal department head profile.
By taking these factors into consideration, we are now able to conduct personnel

was R1. We set this period as a time to concentrate on the basics in order togrowth with profit; Proactively cultivate new business as a segue to the next

2. Proactively cultivate new business as a segue to the next
generation

generation (to make up 30% of total by 2029); and Establish a corporate

We have set a goal for developing new businesses that will lead to the next

Other measures to enhance interaction and communication amongculture in which each employee makes a personal effort to satisfy customers

generation such that they account for 30% of our total business by 2029. The

employees include the “Dojo,” a place for those who have skills and know-how

in a self-disciplined way. Here, we report on the results and challenges withmain focus is on what we call next-generation batteries, and in this regard, we

to pass them on to those who wish to learn, and an incentive points system

respect to each of these goals.

are focusing on all-solid-state batteries, nickel-zinc batteries, and metal-

where employees exchange “thank you” points with each other. In this way,

hydride/air rechargeable batteries.

efforts to invigorate the internal company environment are ongoing.

step up, establishing three goals: Stabilize current businesses and establish

1. Stabilize current businesses and establish growth with profit

evaluations from a broad perspective, including the presence or absence ofskills, rather than simply evaluating making an effort as good and failing as bad.

There are two types of all-solid-state batteries: sulfide batteries, which are

The mainstay of our business is Ni-MH batteries. Because of their excellent

large and powerful, and oxide batteries, which are small and adaptable, but it is

Mid-Term Business Plan R2

safety features, such as usability at high and low temperatures and resistancethe latter that we are focusing on developing. At only 4 mm square in size, theyOver the three years of R2, which runs from April 2023, we will take into

to overcharge and over-discharge, they are widely used around the world, notcan be embedded in circuit boards just like electronic components, making

account the issues identified in R1 and further strengthen our existing three

only as general rechargeable batteries, but also as backup power sources inthem versatile enough to be used in a variety of applications such as IoT devices

major businesses of Ni-MH batteries, lithium batteries, and electronics tocritical situations.

and wearable terminals. Furthermore, when combined with a power generation

enhance their resilience. This period will also see the launch of new businesses,

circuit such as a solar cell, they can operate semi-permanently. As such, from aleading into the finalization stage in the following three-year period.

In the first year of R1, we also saw a significant increase in the profit margin

sustainability perspective, this is a very promising type of battery.

Achieving Sustainability Management through an “And”
rather than “Or” GameWe cannot rule out the possibility that more unforeseen difficulties, in“And Game” is a phrase that I have used consistently since becoming

boast a long service life of up to 20 years in some cases, and are used in a variety

Rechargeable Ni/Zinc batteries are secondary batteries that apply theaddition to soaring material costs and significant exchange rate fluctuations,

President. Although this is a very important concept, I still hear some peopleof applications, including automotive equipment, medical devices, and home

positive electrode and structural technologies developed for Ni-MH batteries

may emerge in the future. We will strive to improve the quality of oursay they do not understand it well, so I would like to take this opportunity tosecurity systems, such as smoke detectors. Efforts to promote efficiency, such as

and the zinc negative electrode technology of alkaline batteries, offering

management, including governance, to become a company that can respond

explain it again.

the integration of production bases, contributed to the improvement in profitability.

environmentally friendly properties and a high level of safety. Since they can be

to changes in the market environment, while building systems that allow each

It is actually very simple. A company has four groups of stakeholders:

In the second year of R1, the electronics business, which had been enduring

used as an alternative to lead-acid batteries, which have a severe environmental

employee to perform to the best of their abilities and fostering a culture incustomers/partners, shareholders, employees, and society. The term “Anddifficult conditions, returned to profitability. After Ni-MH batteries and lithium

impact, and weigh only half as much, they are expected to be widely used forwhich employees can improve each other’s skills.

Game” expresses the idea of satisfying all (and) rather than one (or) of thesebatteries, it has grown to become the third pillar of our product lineup.

in-vehicle and backup power sources.

on lithium batteries. Lithium batteries are single-use primary batteries, but they

Accordingly, we can say that the first two years of the plan went very well.

Metal-hydride/air rechargeable batteries replace the positive electrode of

I want us to spend these three years building a solid foundation, so that byfour groups. If you rank stakeholders in order of priority, such as shareholders

2029, we will be a company that is strong enough to survive no matter what

first or customers first, a distortion will emerge somewhere, and someone

comes its way.

ranked lower in priority will end up hurt. I have seen a number of such

However, in FY2022, the third year of the plan, the impact of the two-year-

Ni-MH batteries with air (oxygen), enabling both high energy density and safety.

long COVID-19 pandemic hit hard. Unable to cope with market fluctuations and

The commercialization of these next-generation batteries did not lead tosoaring raw material prices, the profitability of Ni-MH batteries, our main

actual business in the three years of R1. Given that the technical hurdles are

The FDK Group’s Materialities

product line, deteriorated substantially. Fortunately, the lithium battery andhigher than we had imagined, it is likely to take a little more time. In spite of

In formulating the Group’s materialities, we first established an internalof corporate value, I believe that practicing this “And Game” is the way to meetelectronics businesses remained strong in the third year, so the company as athis, sample shipments of customized versions of all-solid-state batteries have

Sustainability Promotion Committee (initially the Sustainability Promotion

the expectations of society. We satisfy society by solving social issues, and wewhole was able to weather the storm without major impact.

begun, and sample shipments of nickel-zinc batteries to several customers

Preparatory Committee) and compiled a list of social issues based onderive profit from our customers’ appreciation of that added value. That profit

Overall, it was a three-year period during which the three pillars of ourhave also taken place. The hard work of developing metal-hydride/air

approximately 1,500 keywords identified by the committee members. Afteris then used to reward shareholders and employees. It is working through thisbusiness, Ni-MH batteries, lithium batteries, and electronics, stood strong.

rechargeable batteries is steadily bearing fruit, including an ongoingrepeated discussions on the relevance of the identified social issues to thecycle that constitutes the “And Game,” and I am strongly convinced that it willdevelopment project in cooperation with the Ministry of the Environment.

Group’s business, five materialities were selected as issues of high relevancelead to the realization of sustainability management.

and significance to the company.

companies myself.
At a time when there is an increasing demand for sustainable enhancement

Through its business activities, the FDK Group will keep working to help

3. E stablish a corporate culture in which each employee makesa personal effort to satisfy customers in a self-disciplined way“Provision of safe and secure electric energy” and “coexistence with therealize a sustainable society, thereby enhancing its corporate value. I ask for

global environment” are the foundation of our business and represent “Whats”

your continued support so that together we can create a future that brings

Our third goal is to foster a corporate culture in which all FDK employees strivethat we must accomplish to realize our philosophy and Vision.

smiles to the faces of all our stakeholders.

independently to satisfy our customers.
With employee participation in developing the corporate philosophy forminga part of the effort, we have implemented a variety of reforms to our systems“Promoting the active participation of diverse human resources” and“sustainable enhancement of corporate governance” refer to Hows forachieving the Whats.

and processes in a short period of time. These include the introduction of talent“Contributing to sustainability in regions, society and communities” is an

management, changes to the salary structure, systematization and expansion

issue of a different nature from the first four, but it is one that is rooted in localof the education system, reforms to working styles, such as the introduction ofsociety and has a significant impact on residents. As a company committed toa flextime system and telework, the enhancement of internal improvement

being a member of the local community, we recognize that this is an important

activities, and initiatives to improve employee satisfaction.

issue to address.

One of the most significant changes was in the personnel evaluation system.

Through its business activities, the Group aims to realize the five materialities

In addition to performance evaluation, which had been the sole basis forit has identified to achieve sustainable development of society and sustainable

Customer satisfaction

Promises to shareholders

And Gameand(do it all)Responsibilities to
employees

Contributions to society

FDK’s new culture required to execute plan

enhancement of corporate value.

5

FDK GROUP SUSTAINABILITY REPORT 2023

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6

The FDK Group’s History ofValue Creation

History

February 1950: Tokyo Denki Kagaku Kogyo Co., Ltd.
establishedS anyo Energy Twicell Co., Ltd.
(Ni-MH battery business)S anyo Energy Tottori Co., Ltd.
(lithium battery business)

January 2001: Company name changed to FDK Corporation

July 1958: Company name changed to Fuji Electrochemical Co., Ltd.
April 1972: Becomes part of the Fujitsu Group

January 2010: Acquires Sanyo Energy Twicell Co., Ltd. (Ni-MH battery business) and(lithium battery business), subsidiaries of Sanyo Electric Co., Ltd.

Sanyo Energy Tottori Co., Ltd.

July 2015: Acquires Fujitsu Telecom Networks Limited (power supply business)
April 2022
FDK Corporation(former Tokyo Denki Kagaku Kogyo Co., Ltd.)

1950–

1960–

October 1969

September 1984

August 2009

Listed on the Second Section of theTokyo Stock Exchange

Listed on the First Section of theTokyo Stock Exchange

Reassigned to the Second Section of
the Tokyo Stock Exchange

1970–

1980–

1990–

2000–

2010–

Moves from the Second Section
to the Standard Section due tothe market restructuring of theTokyo Stock Exchange

2020–

2023–

September 1983
Releases lithium batteries andtoner

April 1973
Releases DC-DC converters
Entry into the electronic
components industry

February 1950
Begins production and salesof carbon-zinc batteries

March 1967
Begins production of alkaline
batteries

January 1978
Releases silver oxide batteries

1999
Begins production and sales ofmultilayer inductors for highfrequency

2011
Begins sales of thin primarylithium batteries

May 2012
Releases low self-discharge Ni-MH
batteries as “Fujitsu Rechargeable
Batteries”

October 1984
Batteries branded as “Fujitsu”

March 2023
Begins sample shipments ofnickel-zinc batteries

December 2018
Sample shipments begin of world’s
highest voltage ultra-compact all-solidstate batteries

April 2013
Releases “FDK power storage
system” using Ni-MH batteries

December 2020
Begins production of the small all-solidstate SMD battery SoLiCellTM

Past Products that Sustained FDK

7“Novel” brand dry-cell batteries(manganese)

Ferrites for consumer use

Ferrites for communication equipment“Novel” brand dry-cell batteries(alkaline)

DC-DC converters

Switching power supplies

Lead filters and acoustic wave
oscillators

Noise filters

Microwave components

Hybrid modules

Stepper motors

Rotary transformers

Optical isolators

Electronic component materials

Optical communication components

HDD Heads
FDD Heads

FDK GROUP SUSTAINABILITY REPORT 2023

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8

Financial and Non-Financial Highlights

Highlights

Since its beginnings in 1950 with the manufacture and sale of carbon-zinc batteries, the FDK Group has developed various innovations inbattery materials. Drawing on the technical expertise we have cultivated in battery materials, we have also entered the electronic components
and modules business, and as a “Smart Energy Partner,” we are contributing to the realization and development of a sustainable society by
fully taking into account our environmental impact.
In recent years, we have actively expanded human capital management on the basis of the slogans “a company we can be proud of, aworkplace we want to recommend to our loved ones,” and “job satisfaction.” Moreover, through measures such as promoting diverse humanresources and evolving our education system, we are focusing on “strengthening human resource value,” “job satisfaction reform,” and“working environment reform.”

Financial information

Non-financial information
Operating income (consolidated)/
Operating margin

Net sales (consolidated)(million(million
yen)(million
yen) yen)2500
2500 80,000

(%)

(%)

(million yen)

Proportion of women in executive positions

Ordinary income
(%)

3.5

3.5

2500

3.5

3.0

3.0

2000

3.0

(million yen)
2000

FY202170,00062,784

2000

2000

1500

60,00050,000
1500
1500

2.5

2.5

1500

1000

FY2021

851
1000
1000 30,000

2.0

2.0

1000

2.0

789

789

789

500

1.5

10,000

1.3

1.5

500

0

2018

2019

Operating income (left axis)

Net profit margin

2020

2021

2022

0

1.0

(Fiscal year)

1.9 %Regular workers

2019

2020

2021

2022

73.9

FY2021

7

70

6

60

5

50

4

40

3

30

2

20

-3.0

1

10

-4.0

0

20,000

FY2022

3.0

1.0

3.7

0.0

851

2018

2019

2020

2021

2022 (Fiscal year)

0.8

2019

2020

2021

2022 (Fiscal year)

FY2021
FY202230,000 yen

10.3 %

2.2

2.42 %*2 B ased on the provisions of the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members (Act No. 76 of 1991), thepercentage of child care leave, etc. taken is calculated as per Article 71-4-1 of the Ordinance for Enforcement of the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfareof Workers Caring for Children or Other Family Members (Ministry of Labor Ordinance No. 25 of 1991).

CO2 emissions(1,000 tons CO2)02018

FY2022

FY2021

62.1

2.0

-2.0

73.4 %

Rate of people with disabilities among
employees

Education and training costs per person

(%)
80

-1.0

79.8

*1 Calculated in accordance with the provisions of the Act on the Promotion of Women’s Active Engagement in Professional Life(Act No. 64 of 2015).

(Fiscal year)

Rate of male employees taking childcare
leave*28

0.5

77.1 %

Part-time and fixed-term workers

Overseas sales rate

(%)

3.5

2018

Operating margin (right axis)

ROIC

(%)

72.1

1.5

1.3

76.0 %FY2022

1.3

0
1.0
2019
2020
2021
2022
1.0
0 2018(Fiscalyear) year)2018 20202019 2021
2020 2022
2021 (Fiscal2022
2018 2019year)(Fiscal

0

1.4

500

20,000

FY2022All workers

2.5

40,000500

Gender wage gap*1

50000
2018

2019

2020

2021

2022

(Fiscal year)

40000

37,216

30000
20000
10000
0

9

FDK GROUP SUSTAINABILITY REPORT 2023

2018

2019

2020

2021

2022

(Fiscal year)

FDK GROUP SUSTAINABILITY REPORT 2023

10

The Story of Value Creation at the FDK GroupStory

Approach to Value Creation

In continually addressing five prioritized initiatives based on the FDK Group Sustainability Policy, the Group engages in management as a
responsible global corporate citizen. Through the development and supply of batteries, energy storage systems, and electronic products
based on the core technologies we have developed over the years, and the provision of battery solutions, the FDK Group, in contributing to
the resolution of social issues, is committed to providing value to all stakeholders.

Vision: Smart Energy Partner

Stakeholders

FDK Group, as a Smart Energy Partner, assemble advanced technologies, would like ourcustomers to best utilize electric energy in a safe and efficient manner, and contribute tomaterialization and development of sustainable society.

Customers

Shareholders/
Investors

Suppliers

Employees

The status-to-be of the FDK Group: Our offerings
We are adding various functions and features in addition to the reliability, safety, andenvironmental conservation that we have always offered, thereby achieving a wider range ofapplications and meeting an increasingly diverse range of customer needs.

Social Issues• Growing awareness of CSR• Importance of product quality andmanagement quality• Sudden changes in the price of natural
resources

Invested Capital• Sharp rising in labor costs at overseas
manufacturing base
• Market maturity and change of market
structure

Mid-Term Business Plan / 10 Years’ Scheme

Business Model

Vi

u

ie

ine

Medical and Welfare Sites

Batte

Electrochemical technology
Power electronics technology
Ultra-fine printing technology• Human capital

2023–25

ess

Circuit technology

CAE technology

Sta

Materials technology

R1

tus

2020-22

ro

ffe

rin

ctron

ics busin

ess

m

Ele

e:

Ou

Ga

-b

• Natural capitale-to• Social andrelationshipcapitalAnd

1. Accelerate the profitable growth ofcore businesses
3. Cultivate a culture of mutual
acknowledgement and enhancement

Standards• Lithium batteries• Alkaline batteries

R3

2026-28• Facility-related equipment• Various modules• Power supply solutions

Strengthening Resilience and Laying Groundwork for R3
We anticipate that the business environment for R2 will be morechallenging than that for R1. Despite this, we will enhance our businessresilience by strengthening our three core existing businesses, step up thepace of laying groundwork by launching new businesses, and improve thequality of management by fostering a culture of autonomous pursuit ofhigher goals. This will then lead into R3, in which we will aim to achieve thestatus-to-be set forth in the 10 years’ scheme.

CodeMaterialities
FDK GROUP SUSTAINABILITY REPORT 2023

Under the mid-term business plan R2, we will implement
various measures based on the three pillars of“accelerate the profitable growth of core businesses,”“develop and launch new businesses,” and “cultivate aculture of mutual acknowledgement and enhancement.”
We will improve the profitability of the company as awhole by growing our three core existing businesses,
launching and commercializing businesses such as
next-generation batteries and power solutions, anddealing with all stakeholders involved with the FDKGroup with an “And Game” attitude, which will lead to anincrease in our corporate value.

2. Develop and launch new businesses

gs

FDK Group: FDK Group Corporate Conduct Guidelines
Fujitsu Group: The Fujitsu Way
Philosophy
Vision11• Ni-MH batteries

Three Pillars of R2

High-density mounting technology• Finance capital

Homes

R2

usin

rie

og

Social Infrastructure / Businessgb• Manufacturing
capital’s
DKcore technol

Eng

Output p.17–20

r

in

F

s

tne

s

sb

si

s
ne

Smart Energy Par

p.13-14er• Intellectual capitaln:sio

Global Society/Local Communities• Legislation to promote energy-saving policy• Enlarging demand to in-vehicle telematics
appliance

p.15-16

10 Years’Scheme
FDK GROUP SUSTAINABILITY REPORT 2023

12

The Story of Value Creation at the FDK Group

Story

Mid-Term Business Plan andMaterialities

Information on the FDK Group Strategy Framework 10 years’ scheme and
Mid Term Business Plan “R2”
In order to further strengthen our business structure, increase our corporate

remained in the black, it fell short of that in the initial plan due to a lack ofvalue, and meet the expectations of our various stakeholders, the FDK Group

resilience to the deteriorating external environment, such as soaring raw

has developed a “10 years’ scheme” that sets out the status-to-be formaterial prices.

FY2029. To make this status-to-be a reality, we implemented the R1 mid-

Given these circumstances, we have refined our business portfolio toterm business plan for the first three years of this period (FY2020–FY2022).

realize the status-to-be set out in the 10 years’ scheme, developing the R2During the R1 period, consolidated net sales exceeded the target for

mid-term business plan with the three pillars of “accelerate the profitable

FY2022 despite the transfer of shares in our alkaline battery manufacturing

growth of core businesses,” “develop and launch new businesses,” andsubsidiary, among others. Meanwhile, although the operating margin“cultivate a culture of mutual acknowledgement and enhancement.”

Business Portfolio Based on Market Strategy Mapping (Pillars 1 and 2)∙ Increase the profitability of the entire company by growing our three largest current businesses∙ Launch a next-generation battery and power solutions business and enhance their businesspresence∙ For Engineering, which unperformed in R1, build a foundation for growth through new businessdevelopment. For alkaline batteries, improve profitability with minimal operations
Focus• Industrial/IoT• Mobility

The Three Pillars of the R2 Mid-Term Business Plan

1. Accelerate the profitable growth of core businesses∙ Focus on growing markets and markets presenting high levels of addedvalue∙ Optimization of business scale through structural reforms

2. Develop and launch new businesses∙ Full-scale operation of the next-generation battery business and thesolutions business∙ Develop the elements for a more advanced generation battery businessand solutions business

Sales growth rate

• Battery infrastructure• EV battery-related• Appearance inspection
equipment

Power solutions

Next-generation
batteries(solid-state, nickel-zinc)

Business
Alkaline batteries
improvements• Expand sales channels

Engineering∙ Building systems that enables each individual to demonstrate theirabilities∙ Improving the quality of management, including governance13

FDK GROUP SUSTAINABILITY REPORT 2023

• In-vehicle/Power BU• Social infrastructure/Mobility• Meters• Industrial/Healthcare• Mobility/IT/Sensors• Semiconductors

Ni-MH

Lithium primaryElectronic/PMS

Mainstay

Profitability (gross margin ratio)

Cultivate a Culture of Mutual Acknowledgement and Enhancement (Pillar 3)

Customers and partners

Employees

Improve products and services
based on close communication andtrust

Improve the quality of management byregularly recognizing achievements
through praise and encouraging
development of our strength

Shareholders

3. Cultivate a culture of mutual acknowledgement and enhancement

Successful areas of application

Obtain appropriate evaluation for ourcompany through the timely
dissemination of information“and”(do it all)Society
Deepen awareness and fulfill
responsibilities as a member ofsociety

FDK GROUP SUSTAINABILITY REPORT 2023

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The Story of Value Creation at the FDK Group

Story

Mid-Term Business Plan and Materialities

The FDK Group’s 5 Materialities (Prioritized Issues)
The FDK Group has newly identified five materialities in order to realize the Group’s philosophy of “Inspiring transformation; shaping thefuture and creating happiness,” and the Group’s vision, “FDK Group, as a Smart Energy Partner, assemble advanced technologies, would likeour customers to best utilize electric energy in a safe and efficient manner, and contribute to materialization and development of sustainable
society.”Through its business activities, the Group aims to realize the five materialities it has identified and to achieve sustainable development ofsociety and enhancement of its corporate value.

2 Coexistence with the global

Importance to society

environment

The Materiality Identification Process
In identifying materialities for the FDK Group, we established an

STEP 1internal “Sustainability Promotion Preparatory Committee,” whosemateriality from the viewpoint of its importance to the Group and its
at management meetings and other forums.

enhancement ofcorporate governance

STEP 2

initiatives for each business division, etc. accordingly.

STEP 3

Importance to the company

Producing the Materiality Map
Materialities

ESG category

Provision of safe and reliable electric• Provide products and solutions that support a sustainable societyenergy2

Coexistence with the global
environment• Promotion of a recycling-oriented society• Measures to address climate change• Contribution to the global environmentE3

Promotion of diverse humanresources•
Create an environment in which employees demonstrate theircapabilities to the fullest• Create an environment conducive to continued work in good healthS

4

Sustainable enhancement ofcorporate governance•Strengthen systems and supervisory functions to ensure prompt
decision-making with management transparency and objectivity,
taking into account the positions of stakeholders• Strengthen the foundation of the risk compliance system• Strengthen internal company controls• Ensure compliance with laws, regulations, and social norms andconduct with high ethical standards

G

5

Contribution to the sustainability of
local communities and society• Connect with local communities to create a world full of smiles

S

Identifying Materialities• Materiality issues for the group are determined at management
meetings and in the Sustainability Promotion Committee

Materiality measures for the company

1

Validation• The Sustainability Promotion Preparatory Committee members
examine priority issues for the company from multiple perspectives
in each field.

STEP 4

reliable electric energy

local communities and society

Setting Out the Social Issues• A 5-point scale is used to rate the importance of each of theidentified social issues from an internal and societal perspective• The evaluation results are mapped on graphs to examine levels ofimportance and confirm the positioning of priority issues

From FY2022, we will set KPIs for each materiality and implement

1 Provision of safe and3 Promotion of diverse human resources

5 Contribution to the sustainability of• Social issues are listed by the Sustainability Promotion Preparatory
Committee• The relevance of the listed social issues to our Group is considered,and discussions are held to select themmembers identified social issues and then evaluated each candidate
stakeholders. Five materialities were identified based on discussions

4 Sustainable

Relevant SDGs

E・S

The Social Issue Identification Process
Keywords relating to sustainability extracted

Social issues listed

Social issues selectedSustainability Promotion Preparatory Committee

Relevant social issues arelisted based on the extracted

19 candidate social issues
extracted based on their relevance to

keywords

the company

1,496 keywords

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FDK GROUP SUSTAINABILITY REPORT 2023

Impacts ascertained
Company
Society

FDK GROUP SUSTAINABILITY REPORT 2023

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The Story of Value Creation at the FDK GroupOUTPUT

Batteries

The FDK Group’s Output
Product Information

Ni-MH batteries

What are Ni-MH batteries?

Batteries
Ni-MH batteries are a type of rechargeable battery that can be charged and used repeatedly.
FDK’s batteries offer the advantages of stable discharge voltage and high-current discharge, as
well as superb safety performance, being highly resistant to overcharge and over-discharge.
They are also highly recyclable and easy to transport.

Lithium batteries

Advantages
Advantages

Lithium metal, which has a high capacity relative to mass, is used as the anode material, andFDK’s unique technology keeps the self-discharge rate low to achieve long service life. Resistantto both low and high temperatures, they can be used for a wide range of applications.

What are lithium batteries?

The quality and reliability of Japanese manufacturing
We are committed to manufacturing in Japan so that our products can be used safely and reliably in all applications,and this Japanese craftsmanship, which prides itself on precision and care, has ensured our high standards of quality.
Environmentally friendly
These batteries are environmentally friendly as they do not use hazardous substances subject to regulation under the
RoHS Directive.
Long service life, long-term reliability
Optimized material design and laser sealing provide a long service life of 10 to 20 years, depending on the product. As
such, they help support long-term operation of equipment.

The quality and reliability of Japanese manufacturing
We are committed to manufacturing in Japan so that our products can be used safely and reliably in all applications,and this Japanese craftsmanship, which prides itself on precision and care, has ensured our high standards of quality.
Environmentally friendly
Because they can be repeatedly recharged and discharged, they generate less waste than dry batteries, making them
resource-saving, environmentally friendly products.
Usable in a wide range of temperatures
Some products can be used in a range of temperatures as wide as -40°C to +85°C.
Long service life
With their long service life, Ni-MH batteries are ideal as replacements for nickel–cadmium batteries in emergency
lights, guide lights, security equipment, etc.
Highly recyclable
Ni-MH batteries are made using metal resources such as nickel and iron, which can be reused through recycling.

Excellent storage performanceWith an extremely low self-discharge rate of 0.5%/year (at room temperature), they retain more than 95% of theircapacity even after 10 years of storage.
Usable in a wide range of temperatures
By employing a non-aqueous electrolyte that does not freeze easily, some products can be used in a range oftemperatures as wide as -40°C to +85°C, supporting the operation of equipment even in outdoor environments.
Stable discharge voltage
The spiral electrode design and optimized electrolyte composition provide reliable support for high-load, highfrequency communications.

Applications
High durability

High-durability
automotive use

Applications
Security

Transport

Medical devices

Guide lights

Coin-type batteries (primary batteries)

Cylindrical-type batteries

MetersHigh output
Automotive (eCall, etc.)

Utility meters(gas, electricity, water)
Servers/storage

Starters

ATMs

Household fire alarms
Gas leak alarms

Thin-type batteries
Dry-cell compatibility

Electronic keys

IoT communication modules

Care lifts

Coin-type batteries (secondary batteries)*

General functions●REC
Camera strobes

ClocksRemote controllers

Wireless computer
mice

Information andcommunications
equipment

Audio and visualequipment

Lighting equipment

Credit cards(with dynamic code display)
Card-based security systems

Wearable
medical devices

Dashboard cameras

Security cameras*Memory backup applications

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The Story of Value Creation at the FDK GroupThe FDK Group’s Output
Product Information

OUTPUT

Batteries

Alkaline batteries

Electronics

What are alkaline batteries?

Alkaline batteries are primary batteries characterized by their excellent power and longevity,
allowing even devices with high power consumption to be used for long periods of time.
Highly reliable, they meet all kinds of needs, from high-current to low-current devices.

Modules
We deliver compact, high-performance modules by drawing on two of the fundamentals of FDK’s technology:
electrochemical technology and materials development. We provide finely tuned solutions to meet our customers’
needs from the design stage, offering high-density, high-quality, and high-value-added products, modules, andmore, based on technology proposal-based design and development.

Advantages

Applications
Advantages

The quality and reliability of Japanese manufacturing
We are committed to manufacturing in Japan so that our products can be used safely and reliably in all applications,and this Japanese craftsmanship, which prides itself on precision and care, has ensured our high standards of quality.
FDK’s proprietary rare metal coating
The rare metal coating between the conductive film and the nickel plating layer prevents internal resistance fromrising due to oxidation and inhibits the generation of gases inside the battery that can cause leaks.

High-frequency devices

Card readers

Communications

GPS modules

Bluetooth®* devices* “Bluetooth” is a registered trademark ofBluetooth SIG, Inc.

Applications

Electronics

Household appliances

Power supply solutions

Advantages

Remote controllers

LED lights
Outdoor goods

Mice

Infection prevention

Pulse oximeters

Engineering

Dispensers

Beauty and health equipment

Sanitation appliances

Applications
Equipment

Musical instruments and audio equipment

Contactless thermometers

Electronic keyboards

Facilities and related equipment

Group company: FDK ENGINEERING CO., LTD.
FDK ENGINEERING CO., LTD. was founded in 1956 as the Machinery Department of

Audio devices
Digital voice recorders

Through performance and quality, we support our customers in addressing an increasingly complex set of challenges,
providing a wide range of products such as standard power supplies designed for long service life (15 years or more),custom power supplies newly designed to meet customers’ needs, and system power supplies that provide a higher
level of performance for applications that standalone power supplies cannot handle.

Semiconductor manufacturing
equipment

Base stations

Industrial manufacturing
equipment

Receivers

RelaysTransmitters

The company provides total support for helping customers save labor, streamline their operations, and automate their equipment and machinery, from initial
proposals to design, manufacturing, and final adjustments, as well as providing high-quality equipment. With the ability to propose concepts as its greatest
strength, FDK Engineering handles equipment in a wide range of fields, including automobiles, batteries, electrical and electronics, and medical-relatedareas, incorporating the next generation of cutting-edge technology and constantly evolving to contribute to the development of both customers and society.
Proposal

Development

DesignManufacturing

Installation

Operation

Fuji Electrochemical Co., Ltd. (now FDK Corporation) and was established as a
subsidiary of the FDK Group in 1990.
A group of expert technicians, FDK ENGINEERING is the only company in the FDKGroup that specializes in factory automation equipment. Since its establishment, it
has been committed to providing equipment that satisfies its customers, in line with
its philosophy of “giving shape to your ideas” and its vision of “pioneering the futureof production systems with our skill and heart.”

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The Story of Value Creation at the FDK Group

Sustainability Management

Story

For the FDK Group, sustainability activities are about working together with stakeholders* to solve various social problems through all ourbusiness activities, thereby contributing to the realization of a sustainable society, in line with our philosophy, “Inspiring transformation;
shaping the future and creating happiness.”* FDK Group stakeholders: The FDK Group considers customers, suppliers, shareholders, investors, employees, global society, and local communities to be its stakeholders. We also consider organizations such as governments,
NPOs, NGOs, academic societies, industry associations, and international organizations to be important stakeholders within “global society and local communities.”

Sustainability Promotion Framework

Sustainability-conscious Procurement Activities

To advance its sustainability activities, the FDK Group has established a

Based on the FDK Group Sustainability Policy, the FDK Group Corporate

Positioning of Materialities in Relation to the FDK Group
Sustainability Policy

Sustainability Promotion Committee to discuss, decide on, and evaluate theConduct Guidelines, and the Fujitsu Way, the FDK Group has prepared the

The FDK Group has defined five materialities based on its Sustainability

We are committed to providing value to all stakeholders and realizing thegroup-wide realization of the SDGs and medium- and long-term issues in the

FDK Group Supply Chain CSR Promotion Guidebook as a set of guidelines to

Policy. These materialities are established by considering priorities in terms of

FDK Group’s philosophy by implementing the priority measures for the fiveareas of environment, society, and governance. The Sustainability Promotion

promote procurement activities that take into account issues such as respect

their importance to the Group and its stakeholders, and we are promoting

materialities.

Committee, chaired by the President and CEO, conducts periodic reviews offor human rights, health and safety, conservation of the global environment,sustainability management to help resolve the SDGs associated with each

information dissemination, new examples of community service, and the ideal

legal compliance, fair trade, and corporate ethics, and has made it available

materiality.

relationship between a sustainable society and business, among other issues.

on the Group website. In addition to practicing procurement activities incompliance with these guidelines, we also ask the suppliers that make up our

Composition of the Committee
Chair:: President and CEO

supply chain to do the same.

Vice-Chair: Director (Corporate Officer) for Corporate Headquarters

Members::

Group President, Group Vice President, General Manager, Director of
Legal and Intellectual Property Dept, Director of Corporate Auditing Dept

Sustainability Policy

Secretariat : General Affairs and Personnel Department

FDK Group Corporate
Conduct Guidelines

Fujitsu Way

Sustainability Management Promotion Framework

Implementationofour philosophy

Promotion Framework

By working together with stakeholders to solve various social problems through all our business

Management Meetings
Sustainability Promotion Committee
Secretariat: General Affairs andHuman Resource Division
Sustainability Steering Subcommittee

FDK Group Supply
Chain CSR
Promotion
Guidebook

activities, we contribute to the realization of a sustainable society in accordance with our philosophy,
FDK Group
Supply Chain
CSR Survey
Questionnaire“Inspiring transformation; shaping the future and creating happiness.”
Requests for Suppliers(1) Summarize requests from government and industry associations, customers, and global perspectives, andformulate company policies(2) Committee steering, including changes in materialities, development of committee organization proposals, etc.

Sustainability Promotion
Subcommittee
Progress management, compilation, andcommittee reporting of materiality
organizational goals

Corporate Conduct Guidelines

Sustainability Policy

Promoting sustainability-oriented procurement activities

Board of Directors

Philosophy
FDK Group
VisionResponsible Minerals
Subcommittee

CSR and Sustainability
Survey Subcommittee

Summarize issues and problems in
response to various demands fromsociety

Summarize issues and problems in
response to various demands fromsociety

Board of Directors

Management Meetings
Responsible Mineral Procurement Policy
The FDK Group adheres to the Fujitsu Group Policy on Responsible Minerals

FDK Group Materialities
1 Provision of safe and reliable electric energy
2 Coexistence with the global environment

Sustainability Promotion Committee

3 Promotion of diverse human resources

Procurement and sees its corporate responsibility related to mineral issues as

4 Sustainable enhancement of corporate governance

one important CSR challenge. Our policy designates tantalum, tin, gold,

5 Contribution to the sustainability of local communities and society

tungsten, and cobalt as minerals with a high risk of supporting conflicts, using
forced labor, or violating human rights, and it removes any problematicrefineries or other business proprietors from the supply chain. The FDK Groupwill ensure transparency throughout the supply chain and strive forresponsible mineral procurement.

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FDK GROUP SUSTAINABILITY REPORT 2023

The FDK Group Framework: 10 Years’ Scheme
Mid-Term Business Plan

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The Story of Value Creation at the FDK Group

Story

Five Prioritized Initiatives

The FDK Group has established five prioritized initiatives based on its materialities and is implementing sustainability management
accordingly. The purpose of these prioritized initiatives is to contribute to society through the FDK Group’s business, to actively address
matters required by the RBA and other organizations, and to promote responsible management as a global company, and they are being
addressed as follows.
Prioritized Initiative / Materiality
Prioritized theme

Provision of safe and1 reliable electric energy
Provide products and solutions that support asustainable society

Medium- to long-term target
Alongside various partners, develop and provide products and solutions that can make acontribution in various situations, including realizing the smart cities of the future.
• Smart Infrastructure
Develop and provide spare and storage batteries, modules, and solutions that can be installed
anywhere to support social infrastructure• Smart Home & Office
Develop and provide batteries, modules, and solutions for use in a wide variety of highperformance equipment for both indoor and outdoor use• Smart Retail Store
Develop and provide batteries, modules, and solutions to be installed in IoT devices for data
communication with the cloud and management centers• Smart Factory & Mobility
Develop and provide batteries, modules, and solutions for driving vehicles, plant machinery, andother equipment requiring stable operation

FY2022 target• Ni-MH batteries:
Expand sales of products for social infrastructure, home appliances, power
backup, in-vehicle accessories, and mobility applications• Alkaline batteries
Develop technologies for higher performance (longer life) and improved
safety and reliability
Develop technologies and products to reduce environmental impact

FY2022 result• Lithium batteries
Cultivate new business opportunities and accelerate development of
new models
Maintain the product supply system• Electronics businessStart mass production of products for residential applications
Develop products for mobility applications• Development of next-generation technologies
Develop next-generation batteries (nickel–zinc batteries)
Develop batteries for the generation after next
Advance elemental technology development• All-solid-state batteries
Advance development of compact all-solid-state SMD battery
SoLiCell®

• Ni-MH batteries
Began mass production and shipment of long-life Ni-MH batteries for the
in-vehicle accessory market, shipments of electrode plates for Ni-MH batteries
for large storage batteries, and shipments of high-power Ni-MH batteries for
power supply backup applications.
We are also working to further expand sales by shipping samples of products forin-vehicle accessories and the mobility field, as well as through other means.
• Alkaline batteries
In addition to adopting “passivation block technology” for all products and striving
to improve continuous discharge performance, we have promoted the creation ofsustainability-conscious products by adopting biomass ink for battery labels andadding the “Sustainapack” to our product lineup, which uses 100% papermaterial in order to reduce/eliminate plastics in packaging materials for the“Premium S” line.

• Lithium batteries
In addition to advancing the development of higher functionality models forthe short-distance communication market, we strengthened our production
system by consolidating the production of high-capacity cylindrical-typeprimary lithium batteries at the Tottori Plant.
• Electronics businessStarted mass production and shipment of wireless products for smart homes
and advanced development of drivers for next-generation semiconductor
exposure motors.
• Development of next-generation technologies
Advanced the development of next-generation battery prototypes, anddetermined and evaluated the specifications of the batteries for thegeneration after next. In addition, we also proceeded with the development of
new analytical element technologies.
• All-solid-state batteries
In addition to conducting reliability tests, prototyping, and evaluation, we
exhibited our products at the 9th Wearable EXPO.

Contributing to carbon neutrality• Adoption of renewable energy: 40% or more by 2030
• Integrated management of achieved emissions in Scope 1 to Scope 3• Energy conservation activities: 1% reduction/year = 7% reduction by FY2029• Rate of renewable energy adoption in FY2022: 8%• Identify issues and establish a system for management of Scope 3
emissions• Identify various energy conservation measures and implement
measures to achieve targets
Systematic renewal of aging facilities
Reduce peak power consumption• 8% of the energy purchased in FY2022 was renewable energy, and we areworking to install solar power generation at the Tottori Plant.
• Studies were conducted on industry-standard methods for managing Scope 3
emissions. Information on Scope 3 calculation methods was gathered at an
external web seminar.

• Each site has set its own electricity reduction targets and is working toachieve them.

Contributing to the realization anddevelopment of a sustainable society

Collaboration with stakeholders• Promote collaboration with the supply chain• Restructure internal systems (including information research and disclosure)• Promote collaboration with external organizations in Japan and abroad• Propose international standards• Maintain 100% rate of surveys conducted on chemical substances contained in products• Maintain 100% rate of surveys conducted on responsible mineral procurement• Continuously identify issues and provide feedback through Fujitsu Group
RBA surveys of suppliers (including business partners)• Restructure FDK’s system for responding to key questions from various
surveys• Establish procedures for responding to RBA*1, CDP*2 and other information
disclosure agencies• Contribute to international standards through the Battery Associationof Japan• Maintain 100% rate of surveys conducted on chemical substances
contained in products• Maintain 100% rate of surveys conducted on responsible mineralprocurement• Feedback was provided to suppliers based on the results of the Fujitsu Group
RBA survey.
• Requirements were identified through various surveys.
• Gave responses to the RBA and CDP and gathered information on areas where
we failed to meet targets.

• Continued our activities concerning the formulation of international standards
through the Battery Association of Japan.
• Maintained 100% rate of surveys conducted on chemical substances
contained in products.
• Maintained 100% rate of surveys conducted on responsible mineralprocurement.

Promotion of a recycling-oriented society

Effective use of resources —effective use of resources from various perspectives—*Efficiency, long service life, reduction, savings, recycling• Design and develop products that contribute to conservation of resources• Design and develop products that contribute to improved resource efficiency• Ni-MH batteries
Begin mass production with specifications that change the amount of rareearths used
Develop products with specifications using recycled materials• Alkaline batteries
Introduce new anode additives• Lithium batteries
Develop higher-performance models for the short-distance communication
market• Electronics business
Apply products using low-melting point solder materials
Apply recycling of waste powder to white spot color toner• Development of next-generation technologies
Develop alternative materials
Develop battery performance simulation technology using CAE
Develop elemental technologies• All-solid-state batteries
Reduce usage of rare metals
Efforts to change the rate of cathode material use
Efforts toward stable production• Ni-MH batteries
In addition to changing specifications to reduce the use of rare earths andstarting mass production, also advanced the introduction of a recycled material
model.
• Alkaline batteries
Introduced new additives for all product types.
• Lithium batteries
Advanced the development of higher functionality models for the short-distancecommunication market.
• Electronics businessConducted a basic reliability assessment of solder materials and started applying
it to mass-produced products, as well as shipped the first mass-produced
product using white spot color toner suitable for recycling.

• Development of next-generation technologies
In addition to researching and evaluating alternative materials and developing
CAE-based performance simulation technology , experiments and studies
were conducted for the development of new elemental technologies.
• All-solid-state batteries
Conducted material analysis to reduce the use of rare metals and madeselections to improve the utilization rate of cathode materials.
In addition, we made efforts to improve the process quality rate andconducted surveys on improvements based on changes in specifications, etc.

Enhanced investment in human resources (education)• Planning and implementation of training
Refine the curriculum for level-specific training, raise overall ability levels
through skill development, and enhance training for young employees• Enhancement of training taking talent management into account
Enhance the development of the next generation of leaders, plan andimplement language education for the development of global humanresources• Increasing each employee’s enthusiasm for learning
Promote the use of e-learning and the Dojos, foster a culture ofself-directed learning, and improve employee skills and motivation• In addition to conducting training by job level as planned, group training was
conducted to strengthen communication skills.
• Two employees participated in an external Next-Generation Executive training
program. We also continued the Next-Generation Development Training Program,and one employee participated in a language study abroad program in the UnitedStates.

• E-learning was conducted for those eligible for level-specific training. In
addition, five employees participated in online English conversation classes.
Five new Dojos were also added, for a total of 22 (10 liberal arts and 12
physical education).

Promotion of diversity (inclusion)• Support/continued recruitment of people with disabilities• Facility development (expansion of universal design)• Recruitment activities to comply with the statutory rate of employees withdisabilities and improved knowledge and understanding on the part ofreceiving departments• Planned facility maintenanceInstall multi-purpose toilets, renovate elevators for wheelchair
access• Rate of people with disabilities among employees: 2.43%• Two new multi-purpose toilets installed.

Career and skills development support• Increase in the rate of management positions held by women*150% of the FY2021 level by FY2025• Support for 2nd careers• Provide career and skills development support to increase the rate ofmanagerial positions held by women• Consider opportunities to think about ways for women to work and holdseminars• Development of mechanisms linked to career design training forseniors
Advice regarding future career
Review of executive remuneration system
Advice on future planning; develop and implement life planningseminars• The number of female participants in selective training programs increased by
8% compared to the previous year.
The number of women in Assistant Manager and executive positions increased
by 4.
• On International Women’s Day, our female outside director gave a companyinternal lecture, which was attended by 114 people.

• Career design training for seniors was conducted for executives aged 55 andgeneral employees aged 58.
In addition, three life planning seminars were held during the year, with 191
participants. During the seminar, advice was given on future life planning, andassistance was provided in acquiring knowledge of pension and social
security systems.

Provision of safe and healthy workplaces —promoting comfortable workplaces—• Thoroughly reduce occupational health and safety risks• Enhance occupational health and safety education• Review relevant regulations through evolution of the PDCA cycle foroccupational health and safety risk reduction activities (identification ofsources of danger, enhancement of risk improvement activities)• Reorganization of health and safety education and training plans bylevel and item

• Kosai/Washizu plants: After reviewing related regulations and undergoing an
initial audit to obtain ISO 45001 certification, the audit was conducted andcertification was obtained.
In addition, all sites including head office and FDK Engineering discussed risk
reduction activities.

• Company-wide Health and Safety Management Regulations were revised, anddetailed regulations for health and safety education and management at the
Kosai and Washizu plants were established.

Implementing health management• Obtain recognition as a Certified Health & Productivity Management Organization• Measures to combat long working hours• Improvement of paid leave uptake rate (uptake rate: 70%)
• Support for balancing work and childcare/nursing care (uptake rate among male employees:
30%)• Reduction of high-risk individuals in periodic health checkups/Improved employee
communication• Enhance work–life balance with a view to acquiring recognition as a
Certified Health & Productivity Management Organization• Visualization of the paid leave uptake situation• Raise awareness of childcare/nursing care systems and present casestudies of other companies• Enhancement of health education• A reporting format for long overtime and paid leave use was developed, and areporting scheme was developed at the Central Health and Safety Committee.
• Childcare Leave Regulations were revised.
A seminar was held on “Men’s Participation in Housework and Childcare.”• A newsletter on health, “Health Management in Information Equipment Work”
was published and disseminated within the company.
A smoking cessation seminar was held.

Coexistence with the

2 global environment

Measures to address climate change

Promotion of diverse

3 human resources

Create an environment in which all employees
demonstrate their capabilities to the fullest

Create a workplace conducive to continued
work in good health*1 Responsible Business Alliance (RBA): Defines standards for the manufacturing supply chain to ensure that the working environment is safe and that workers are treated with respect and dignity, and that companies takeresponsibility for the environmental impact of their manufacturing processes and procurement.
*2 CDP (Carbon Disclosure Project): An NGO managed by a UK charitable organization.
Operates a global disclosure system to help investors, companies, nations, regions, and cities manage their own environmental impacts

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The Story of Value Creation at the FDK Group

Story

Five Prioritized Initiatives

Prioritized Initiative / Materiality
Prioritized theme

Sustainable enhancement

4 of corporate governance/

Medium- to long-term target

Contribution to the

5 sustainability of local

communities and society

Connect with local communities to create aworld full of smiles

25

FY2022 result

Development of a Corporate Governance Policy for the Group• Ensure implementation and operation of the annual report in the Nomination
and Remuneration Advisory Committee<Committee Report Plan for FY2022>
Number of directors and skills matrix report
Report on CEO and director position requirements
Report on criteria and procedures for selection and dismissal of directors
Report on succession planning
Report on independence criteria for outside directors• Formulate a proposal for external disclosure on the company
website and revisions to the website• The annual committee report as described on the left was conducted as planned.
The criteria for determining independence were disclosed externally in the
Governance Report.

• A company governance policy and disclosure plan for the company website
are being developed (under development).

Enhanced accountability to stakeholders• Enhance opportunities for dialogue with stakeholders and respond
appropriately to requests
Customers: appropriate disclosure of information in response to requests
Business partner surveys: timely and appropriate responses• Shareholders and investors: continued consideration regarding theimplementation of dialogue, including information disclosure at
general shareholders’ meetings and on the website
Continue internal information sharing measures (IR/PR/marketingand communications strategy) for planned press releases, including
implementation of measures to improve PR effectivenessContinue to publish explanatory materials for each announcement offinancial results
Timely disclosure of financial results and other matters fordisclosure, simultaneous disclosure of English language versions (asneeded)Provide timely and appropriate explanations to shareholders,institutional investors, and the media, and share communication
results internally
Consideration of holding financial results briefings• Development and publication of Mid-Term Business Plan R2• Responded to external investigations and inquiries as follows
Responses to business partner surveys: 41
Media, investor, and shareholder inquiries: 52
Responses to surveys and questionnaires from media and others: 25• Disclosed IR and PR results in a timely manner at quarterly management
meetings, and continued to submit press release plans and implement
disclosure.
Continued to release explanatory materials for financial results.
Internal discussions were held to set out, review, and discuss the method andpurpose of holding financial results briefings.
• Development and publication of Mid-Term Business Plan R2R2 study meetings were held to confirm the direction of the company,
including its growth strategy, and the schedule was revised to incorporate thelatest situation, given the significant fluctuations in factors such as sales,material market prices, and exchange rates. The content was carefully
examined through interviews and investment review meetings, and the entire
company took action to release R2 by the end of FY2022, but this was notachieved.
(Released on April 14, 2023).

Further integration of risk management into operational processes• Strengthen the foundation of the Risk and Compliance Committee• Restructuring of risk management• Investigate the role of the Risk and Compliance Committee and the risks to beaddressed
A project was initiated to redefine roles and summarize the risks to beaddressed.

• Using the current risk questionnaire, we examined methods for incorporatingrisk management into operational processes.
A study was conducted on how to select potential risks (summarizing risk
areas, identification methods, and evaluation methods).

Strengthen operational risk control by implementing internal controls• Enhance the internal audit system for overseas sites• Prevention of misconduct and prevention of recurrence throughearly detection and rectification of misconduct• Conducted control status checks and improvement proposals for Fuchi
Electronics (Taiwan), FDK Taiwan, FDK Hong Kong, Xiamen FDK (China), and othercompanies.
Conducted an audit of the credit management situation at overseas sites.

• Conducted a survey on compliance with the Subcontract Act in relation topurchasing and made improvements accordingly.
Conducted a survey on security export control and made improvements
accordingly.
Developed plans for corrective measures based on analysis of the causes ofinternal control deficiencies, and made improvements accordingly.

Maintenance of a system for monitoring laws, regulations, and social norms/Ongoingeducation• Promote use of the whistle-blowing reporting desk and promptly respond toreports• Conduct compliance education on an ongoing basis• Whistle-blowing reports received: 4• Conducted e-learning (on copyright/Subcontract Act, etc.) (99.9% attendance
rate)
Conducted level-specific training and field-specific workshops.

Dissemination of information to connect people• Communication with society• Support for safe and secure living• Dissemination of information on disaster prevention• Disaster prevention information is broadcast every Monday on Sonaeru Radio.
Published an educational video on disaster prevention on YouTube.
Sponsored disaster awareness activities in conjunction with the Japan Weather
Association’s “Get to Know Disaster Prevention” program.

Providing opportunities for the future• Provision of learning opportunities• Provision of opportunities to create new value• Support for The Sound of Batteries Powered by the Sun concerts• Twenty performances were held over the year in concert halls and similar venues.

Contribution activities that bring smiles to people’s faces• Contribution to local communities and society• Activities to promote connection with local communities• Activities to promote beautification of local communities

Improved risk compliance

Strengthen systems and supervisory
functions to ensure prompt decision-making
with management transparency andobjectivity, taking into account the positionsof stakeholders

FY2022 target

FDK GROUP SUSTAINABILITY REPORT 2023

• Activities to promote environmental friendliness• Activities to bring lives together• Participated in local traffic safety activities and promoted the purchase of goods
from vocational aid facilities.
• Conducted cleanup activities around company plants, cleaned up facilities, andmaintained local flowerbeds.

• Collected used stamps and plastic bottle caps and donated them to schools.
• Conducted blood donation campaigns, promoted Red Feather and Green
Feather fundraising campaigns, and donated emergency supplies.

FDK GROUP SUSTAINABILITY REPORT 2023

26

The Story of Value Creation at the FDK Group

Story

Health Management

Health Management Declaration
The FDK Group’s philosophy is “Inspiring transformation; shaping the future and creating happiness.” In line with this philosophy, wedeclare that we will work to maintain and promote the health of our employees, who form the heart of our corporate activities, to ensurethat they are healthy in mind and body and can lead fulfilling lives in both the public and private spheres, as well as to realize a vibrantwork environment.
Health Management Policy

Targets
Final target indicators

1. In addition to efforts to prevent lifestyle-related diseases and ensure
early detection of illnesses through appropriate health checkups, the
FDK Group will work to prevent illness among employees and theirfamilies by implementing thorough follow-up measures based on
checkup results.
2. In order to protect the health of all employees, the FDK Group will work
to disseminate information on health improvement with the aim ofenhancing employee health literacy (health awareness and knowledge).
3. The FDK Group will work to enhance communication aimed at realizing
a safe and secure work environment, in which each and every
employee can work with enthusiasm by exercising their abilities andindividuality to the fullest extent.

Reducing the number ofabnormal health findings

Reducing presenteeism

Reducing the number of
employees taking leave

Reducing absenteeism *1

Improving health literacy

Improving knowledge and understanding ofhealth and medical care *2

Improving work engagement

Measures to maintain and promote the health of employees and their

Improving work engagement

families are being actively undertaken.

We plan and implement improvement measures for problems and issues• Conducting influenza vaccinations at company business sites andidentified in employee satisfaction surveys and organizational revitalization

subsidizing the costs

Feeling fulfilled and satisfied at work *3*1 Absenteeism:
Percentage of employees who are absent from work for more than one consecutive month under the
injury and sick leave system (excluding paid leave and accumulated leave)*2 Improving knowledge and understanding of health and medical care:
Percentage of employees who improved their awareness of positive lifestyle changes by attending
seminars and reading health bulletins (survey conducted at the end of the fiscal year).
*3 Work engagement:
Average scores for the two questions “I have a sense of energy at work” and “I feel proud of my work” inthe new Simple Occupational Stress Questionnaire.

diagnostics in order to create a better workplace environment.

• Full subsidies for medical checkups not only for employees but also for• Organizational Revitalization Training for executives and department

their dependents

heads was conducted based on the results of the FY2022 Employee

Measures to prevent passive smoking have included reducing the number

Satisfaction Survey (79 participants)of smoking areas and limiting the hours of use.

• Response rate for FY2022 Employee Satisfaction Survey: 99.1%• A questionnaire on smoking was conducted in September 2023, andStress checks are conducted every year, and the results are used to

the results of the analysis were provided to employees as feedback.

promote awareness of individuals’ stress levels, reduce the risk ofWith the aging population and falling numbers of children, the number ofindividual mental health problems, and improve the work environment

people who are able to donate blood is declining rapidly, and we arethrough group analysis.

actively cooperating in blood donation campaigns as part of our• Participation rate in FY2022: 99.5%

contribution to society.
Blood data figures can provide information about one’s physical condition,

Priority Measures
The FDK Group is engaged in health support activities to maintain andimprove the health of employees and their families and to enhance theirhealth literacy (health-related knowledge). To this end, it has assigned health

FY2022 Results
Previous initiatives

management staff to Group companies in Japan and has worked with the

Measures to prevent lifestyle-related diseases

health insurance association to define objectives and priority measures.

With the aim of achieving a 100% uptake rate for regular health checkups
and secondary health checkups for those with abnormal findings,

Objectives• Build a work environment that is both physically and mentally healthyand safe to work in• Improve productivity by establishing a corporate culture of strong healthawareness• Fulfill customer expectations by allowing all employees to exercise theirabilities and individuality to the fullest extent• Percentage of those with abnormal findings in FY2022: 39.4% (thosewith abnormal findings in any of the statutory checkup categories)

communication in the workplace.

improvements with respect to each of these indicators. To this end, efforts areunderway in the priority areas of
1. Establishing systems from an operational perspective
2. Measures to prevent lifestyle-related diseases
3. Improving work–life balance

Improving health literacy

FDK GROUP SUSTAINABILITY REPORT 2023

Measures to prevent lifestylerelated diseases

Indicators

FY2023targetFY2025targetPrimary checkup uptake rate

99.9％

100％

100％

Secondary checkup uptake rate

92.6％

93.5％

95.4％

Rate of participation in seminars and events

4.3％

15.0%

25.0%

0％

80.0%

100％

Increasing awareness of positive lifestyle changes through provisionof education
Improving work–life balance

FY2022 result

Average rate of paid leave usage

84.8%

85.0％

85.0％

Average overtime hours worked

10.37h10.26h10.06hEffectiveness of Health Management: Outcome Indicators
Priority measures

Indicators

FY2022 result

FY2023targetFY2025targetHealth bulletins are issued and seminars are held based on the results ofPrevalence of metabolic syndrome

13.3％

12.3％

11.3%

health checkups.

Health checkup results

Gynecological checkup uptake rate
(percentage of women who received either cervical or breast
cancer screening)

83.2％

88.0％

90.0％

Situation regarding absence fromwork due to illness

Rate of absences and leave due to mental health problems

0.50％

0.40%

0.30%

Health bulletins:	Gynecological checkups, health management in
information equipment work, effects of smoking andsmoking cessation, teeth and healthSeminars:	Lecture on promoting men’s participation in houseworkand childcare (52 participants), Smoking etiquette (44Status of lifestyle habits and healthbehaviors

participants), International Women’s Day: Thinking about
how women live (122 participants)

27

Priority measures• Total number of participants in walking activities: 1,378• Ground golf tournament, 75 participants in totalsatisfied at work), and created a health management strategy map to facilitate

Effectiveness of Health Management: Process Indicators

exercise habits and energize the organization through improved

indicators related to reducing the number of abnormal health findings

and medical care), and improving work engagement (feeling fulfilled and• Tottori Plant registered as a blood donation supporter

The following activities are being carried out in order to help develop

Target 8,000 steps/day, held twice a year

improving health literacy (improving knowledge and understanding of health• Participants in FY2022: 202

employees are encouraged to undergo health checkups.

In pursuit of these three objectives, we have established a set of final(presenteeism), reducing the number of employees taking leave (absenteeism),so they are being put to good use in order to maintain good health.

Occupational stress survey results

Rate of absences and leave due to other illnesses

0.24％

0.20%

0.15%

Smoking rate

30.5％

30.3％

29.9％

Increase in the number of employees engaged in habitual exercise(total rate of those engaged in health behaviors)

40.7％

43.0%

45.0%

Rate of high-stress individuals

8.4％

8.2%

8.0%

FDK GROUP SUSTAINABILITY REPORT 2023

28

Management System

Governance

Human
RightsLabor
Practice

Environment

Fair Trade

ConsumerIssuesCommunity

Corporate Governance System Chart

Social Requirements

The FDK Approach*As of October 1, 2022

Strengthening corporate governanceContinually enhancing corporate ethics

Ensuring compliance

Strengthening supervisory functions

Ongoing operation of internal control systems

Nomination/Dismissal

Nomination/Dismissal

Accounting
Auditors

Audit and Supervisory Committee
3 Audit and Supervisory Committee
members(including 2 independent outside directors)
Directives

Auditing/
Supervision

Consultation

Board of Directors
4 directors, 3 Audit and Supervisory Committee members(including 3 independent outside directors)

Auditing

Audit and Supervisory
Committee Office

Auditing

Reporting

Reports/
Proposals

Nomination and Remuneration
Advisory Committee
2 directors, 1 Audit and Supervisory Committee member(including 2 independent outside directors)

Selection/Dismissal/Supervision

Link

Number of risk survey
responses

3

4,614

71

Occupational accident
occurrence rate

Occupational accident severity
rate

Number of whistle-blowing
reports

Number of independent outside
directors(total number of directors: 7)

1.00

President & CEO

Department for Internal Auditing

0.01

Number of occupational
accidents

Link(Auditing Department)

Reporting

Auditing

Directives/SupervisionCorporate Officers 6 corporate officers

54Management Meetings(Decisions about Business Operations)

Each Department and Group Company

In March 2022, FDK established a discretionary Nomination andRemuneration Advisory Committee, the majority of whose members are
independent outside directors, as an advisory body to the Board of Directors
for the purpose of enhancing the fairness, transparency, and objectivity ofprocedures related to director nominations and compensation, etc., andfurther improving our corporate governance system.
The discretionary Nomination and Remuneration Advisory Committee
deliberates and reports to the Board of Directors on matters including thefollowing, at the request of the Board of Directors, in order to enhance fairness

Strengthening Corporate Governance
Basic Concept
FDK Group reviews each measure and the management system as necessary

important management matters and deliberate the progress status ofbased on the general principles of the Corporate Governance Code stipulated

performance and investigate the measures.
The Audit and Supervisory Committee is composed of three directors,

maintenance and other necessary measures, because we believe

including two outside directors, with meetings held once a month and wheneverstrengthening corporate governance improves the soundness andelse a meeting is deemed appropriate to monitor and audit the appropriateness

transparency of our company and improves the value for FDK shareholders. In

and validity of management. Furthermore, each Audit and Supervisory Committee

addition, we are striving to improve fairness and transparency through wide-

member attends the Board of Directors meetings to share objective and fair

ranging information disclosure, including the prompt disclosure of businessinsight about overall management on each matter while also auditing theinformation and the provision of financial information via the Internet.

appropriateness and validity of business operations of the directors according tobusiness decision-making and supervisory roles from business execution

the auditing policies formulated by the Audit and Supervisory Committee.
As a measure to enhance corporate governance aimed at actively promoting• Matters related to the development and operation of succession plans• Other matters deemed necessary by the Board of Directors
Officer Training
In an effort to increase the expertise and knowledge of its directors andcorporate officers, FDK holds annual training for directors and corporate
officers, conducted by an external instructor, with the objective of teachingknowledge both within and outside the scope of their expertise.

and transparency in the nomination and remuneration of directors andBoard of Directors Performance Evaluation

directors who are Audit and Supervisory Committee members.

FDK conducts an annual Board of Directors performance evaluation in order to• Matters concerning the nomination and dismissal of directors and directors

identify issues regarding the Board of Directors and to enable the Board of

who are Audit and Supervisory Committee members• Matters concerning the selection and dismissal of the representative
director• Matters concerning the nomination of independent outside directors• Matters concerning the selection and dismissal of members of theNomination and Remuneration Advisory Committee

Directors members to share such issues in order to make improvements toenhance the Board’s effectiveness.
FDK conducts self-evaluations by questionnaire and holds discussions
based on the results of third-party analysis of questionnaires. In doing so, theBoard of Directors can discuss any issues while continually working tostrengthen its supervisory functions.

Continuously Operating an Internal Control System
Basic Conceptthat complies with relevant laws and the Articles of Incorporation while ensuring thecompliance throughout the Group, we have established the basic principle of

In recognition of the fact that strengthening corporate governance is essential for

integrity of our operations and the reliability of our financial reporting. The pursuit of

The FDK Board of Directors is composed of four directors (excluding

compliance with the law in the FDK Group Corporate Conduct Guidelines. We

fulfilling our social responsibilities as a company, the FDK Group will maintain amanagement efficiency and control of the various risks arising in business activities

directors who are Audit and Supervisory Committee members) and threealso abide by the FUJITSU Way, which is the common core philosophy of thesound and strong relationship with FDK stakeholders, from customers to suppliers,

are essential to continually improve the corporate value of the FDK Group. Therefore,

directors who are Audit and Supervisory Committee members.

Fujitsu Group.

shareholders, employees, and local communities. We will implement management

we promote ongoing efforts through the systems described on the next page.

roles, and to strengthen the checking role of the Board of Directors.

FDK GROUP SUSTAINABILITY REPORT 2023

FDK GROUP SUSTAINABILITY REPORT 2023

Environmental Conservation
Activities

by the Financial Instruments Exchange and executes organizational

Our company has introduced a corporate officer system in order to separate

29

Board of Directors meetings are held once every month to determine

Audit and Supervisory Committee members

Relationships with Employees

consists of one internal director and two outside directors. The committee

Initiatives Supporting the Management System• Matters concerning the remuneration of directors and directors who are

Relationship with Society

Attendees of compliancetraining course for all employee
Total number of attendees(including staff at overseas
sites)

Relationships with Customers
and Suppliers

Highlights of Management System

Nomination/Dismissal

Reporting

Link

Management System

Shareholders Meeting

Ensuring management transparency

30

Management System
Governance

Systems to Ensure the Appropriateness of Operations
1. Systems to ensure that directors and employees perform their duties in
2. Systems to store and manage information related to the performance of
duties by directors
3. Regulations and other systems to manage risks of loss

execute business6. Systems to ensure the appropriateness of auditing functions by Audit andSupervisory Committee members

Basic Concept
standard of conduct for each and every employee. The Code of Conduct thatGroup has established an “Internal Reporting Desk” and a “Supplier Compliancemakes up one element of these guidelines clearly states that we will respect

Desk.” The “Internal Reporting Desk”, “Supplier Compliance Desk”, and thehuman rights, act with fairness and freedom in our business dealings, comply“Internal Reporting Regulations” guarantee anonymity of anyone who reports

with all laws, regulations, and social norms, protect and respect intellectuala violation in addition to ensuring no harm is done as a result of reporting anproperty, handle information properly and maintain confidentiality, and not use

issue. Any issue discovered as a result of investigation into a report isour positions in the organization for personal gain. In this way, we will strive to

immediately addressed with reform measures.

earn trust from consumers and suppliers.

Risk Management Process

the occupational health and safety management system with the participation(1) Each department identifies potential risks inherent to business activities,

and consultation of all employees, elimination of sources of danger, reductionof risks, and preparation for emergencies. In addition, FDK also places

There were four reports in FY2022, which were addressed appropriately.
Internal Reporting System(3) 
Executes measures in each department to prevent risks before they
manifest in accordance with decided policies.

Antimonopoly Act, and Personal Information Protection Law in various stratified

All Employees of the FDK Group

Occupational Health and Safety Promotion System

impact through an appropriate response in cooperation with each relevant

At the FDK Group, the Central Health and Safety Committee meets quarterly as

department and the staff office of Risk & Compliance Committee as well asa body to oversee the On-site Safety and Health Committee at each businessworking to identify the underlying causes in addition to formulating andsite and develop the content of group-wide activity plans.

executing plans to prevent recurrence.

On-site Safety and Health Committee meetings are held jointly by labor and

FDK checks the progress of execution during each of these steps and makes

management at each business site every month to execute activities according

improvements as necessary.

to health and safety action plans.
Some business sites have acquired the ISO 45001 certification foroccupational health and safety management. We take advantage of these

Assessment

Including transfers, contract and part-time employees,
temporary employees, etc.

Employees of FDK Group Suppliers

business site related to export management and subcontracting transactions.

[Supplier Compliance Desk]

MeasuresReporting/Consultation

Reporting/Consultation

with an introduction of examples about violations using the company intranet.

Complying with Laws and Regulations Related to Business
Operations
The business operations of the FDK Group must comply with a wide range oflaws and regulations. In addition to this broad compliance, understanding

External Point of Contact

Internal Point of Contact

Law Firm

Compliance related Dept.

Contact is made in such a way to ensure that the informant cannot be identified• Investigate and execute
reduction measures,such as avoidance andmeasures to prevent
risks before they happen• Investigate andimplement migration
and retention

level of occupational health and safety.

Respond to manifestedrisks• Rapid escalation• Early response, impact
minimization by multiple
departments• Formulate and executemeasures to prevent
recurrence

Monitoring, reviewing, and continually improving

comprehensive compliance from an ethical perspective.
FDK has also put in place dedicated organizations for each field ofcompliance, such as the “Central Health and Safety Committee,” “Group
Environmental Management Committee,” “Product Chemical Substances
Management Committee,” “Export Management Committee,” and “Product
Safety Promotion Committee,” in an effort to operate its businesses incompliance with all laws and regulations.

Whistle-blowing System

31

2.09
2.00

1.83
1.61

1.63

1.66

1.8

2.06

1.95

1.50
1.00
1.00
0.58

0.54

0.51

0.45

0.24

0.24

0.25

0.25

2015
FDK

2016

2017
All Industries

2018

0.50

0.54

0.52

0.54
0.53

0.52
0.00

0.00

0.00

2021
2019
2020
Electronic Equipment Industry

2022

Occurrence rate: Death or injury due to occupational accidents per a total of one million hours ofoperation.

Changes in Annual Severity Rate
0.12

Risk Management Initiatives

Occupational Health and Safety Activities

0.10
0.10

The FDK Group aims to continually improve corporate value and make

FDK Group Health and Safety Policy

contributions to customers, local communities, and all other stakeholders

Basic Philosophy

0.08

through its global business activities. To achieve these goals, we properly

We respect and value the life and dignity of every individual as a basic philosophy.

0.06

To ensure a bright future and smiles on the faces of all those who work for the

0.04

identify any potential risks resulting from our business activities and prioritize
important issues requiring a response. Therefore, the FDK Group has
established, practices, and continually improves a Group-wide riskmanagement system.

In order to provide a mechanism for appropriate handling of reports andOur Board of Directors drafted the Basic Policy for Establishing an Internal

consultations regarding compliance violations, thereby contributing to the earlyControl System to define rules and systems that pursue management

FDK GROUP SUSTAINABILITY REPORT 2023

2.50

FDK Group, we will continue to put safety first, to actively work to create a safeand healthy workplace, and to promote mental and physical health, aiming forzero occupational accidents and zero illnesses. Furthermore, in the course of ourbusiness activities, we will comply with relevant laws and regulations, FDK rules,
and stakeholder requirements to which we have agreed.

0.09

0.09

0.09

0.09

0.09

0.07
0.05

0.05
0.03
0.02

0.02

0.02

0.01

0.02
0.00

0.09

0.00

0.00

2015
FDK

2016

0.02
2017
All Industries

0.00
2018

Environmental Conservation
Activities

culture and customs and clearly responding to social trends are part ofChanges in the Annual Occurrence Rate

Relationships with Employees

Furthermore, FDK strives to raise awareness about laws and regulations by
includes information about amendments to relevant laws and regulations and• Identify risks• Analysis/evaluation[Internal Reporting Desk]e-learning) for all of our employees. FDK also conducts training annually at eachproviding employees with a broad range of information about compliance thatsociety. These actions have strengthened our mental health efforts.

management systems in an effort to realize a framework with an even higherUsers

the above, FDK continually conducts a variety of compliance training (including

company, operating business smoothly, and contributing to a sustainable

Committee. Any issues are resolved as quickly as possible to minimize theRisk Management Process Chartinternal regulations to the Foreign Exchange Act, the Product Liability Act,

manager training, to bring about understanding in every employee . In addition toof employees and their families, but also in terms of earning trust as a(4) If a risk materializes, each department will escalate to the Risk Compliance

The FDK Group explains laws and regulations closely related to its work, fromtraining programs, such as new and mid-level employee training as well as newimportance on employee mental health measures not just from the perspective

Relationship with Society

Compliance Education

create a safe and comfortable workplace through ongoing improvements toRelationships with Customers
and Suppliers

management that complies with laws and regulations in good faith, the FDK

Community

Based on the principle that occupational accidents must not happen, we willpolicies (avoidance, mitigation, migration, and retention of risks).

FDK Group established the “FDK Group Corporate Conduct Guidelines” as theConsumerIssuesBasic Policy(2) Clarifies the priority of response for each risk and determine risk-control

detection and correction of misconduct, etc. and reinforcing fair business

Fair Trade

this basic policy with our shareholders.

and evaluates and verifies them.

Ensuring Compliance

Environment

efficiency and control risks resulting from business activities. We also share

5. Systems to ensure the appropriateness of operations of the corporate group
comprising the FDK Corporation and its subsidiary companies

Labor
Practice

Management System

accordance with laws, regulations, and Articles of Incorporation

4. Systems to ensure that directors of FDK and subsidiary companies efficiently

Human
Rights

0.01
0.00

0.00

0.00

2019
2020
2021
Electronic Equipment Industry

0.01
2022

Severity rate: Number of days lost due to occupational accidents per a total of one thousand hours ofoperation.

FDK GROUP SUSTAINABILITY REPORT 2023

32

Relationships with Customers and Suppliers

Governance

Human
RightsLabor
Practice

Environment

Fair Trade

ConsumerIssuesCommunityand materials used in existing Ni-MH batteries, we were able to achieve higher

Social Requirements

The FDK ApproachIncreasing importance of product quality andmanagement quality
Expanse of the reliable and safety needs in thesocial infrastructure roup will take advantage of ecosystems to increaseGthe value of offerings provided together with various
partners to enable customers to utilize electricenergy in diversified ways.

capacity (25% improvement) while maintaining the same high output andGiven that Ni-MH batteries’ low risk of ignition and smoking will lead tosimplified export operations and use in applications that require high reliability,
such as servers and storage devices, we are aiming to further expand sales
volume and distribution channels.

Premium S “Sustainapack” ® AA alkaline batteries

Highlights of Relationships with Customers and Suppliers

Development of the “ZR-4/3FAUP” nickel–zinc battery
FDK has developed a nickel–zinc battery with excellent safety performance
shipments to selected customers.

Number of ISO9001-certified
production sites

5

7

Number of IATF16949-certified
production sites

Number of ISO 14001-certified
production sites

4

In recent years, as countries around the world move toward decarbonizationand carbon neutrality, demand for storage batteries has been growing as away to store electricity to cope with the increase in renewable energy

7generation and to counter power outages in the event of disasters.
To meet these needs, we have developed nickel–zinc batteries to enable
Premium S “Sustainapack” ® AAA alkaline batteries

Relationships with Customers
and Suppliers

and superior charge-discharge characteristics, and has begun sample

Number of publicannouncements regarding
products in FY2022

Management System

durability.

storage batteries that use electric power effectively and efficiently.
Our newly developed nickel–zinc battery “ZR-4/3FAUP” is a secondary

As a Smart Energy Partner that assembles advanced technologies, the FDK Group would like our customers to best utilize electric energy in a safe and efficientmanner, and it hopes to contribute to the materialization and development of a sustainable society. This vision will help to resolve social issues through the products
and services provided by the FDK Group.

Basic Concept
The FDK Group strives to build product development, supply, and quality
assurance systems that help resolve social issues, and we work to promote
green procurement based on concepts for continually developing andsupplying high-quality, safe, environmentally friendly batteries and electronic
devices able to satisfy customers.

FDK Group Initiatives
The FDK Group strives to provide batteries and electronic devices that use
environmentally friendly materials by complying with environmental laws andregulations to heighten our value as a company cultivating the future. As partelectrode technology used in alkaline batteries, offering environmentally

backup applications, with the start of mass production and shipments infriendly properties and a high level of safety. Because it can be recharged in a

January 2023.

similar way to lead-acid batteries, it has the advantage of being able to replace

Since 1991, we have been manufacturing and selling Ni-MH batteries forlead-acid batteries relatively easily. We have started sample shipments tovarious applications such as security, in-vehicle, medical, and homeselected customers for use in electric mobility applications and power supply

appliances, offering features such as “usable in a wide range of temperatures,”backup applications. Going forward, we will continue to improve the product’s“environmentally friendly with repeated recharging,” “highly recyclable,” andperformance and increase the number of customers to whom we ship“low risk of ignition.”samples, while listening to the applications and requirements they have in

In recent years, the need for batteries with higher output and capacity has

Examples of New Product Launches (As of April 2023)

been increasing due to faster devices and increased data capacity in

FUJITSU alkaline batteries feature improved continuous discharge

applications such as security and storage. By thoroughly reviewing the design

mind.

performance thanks to new technology; the Premium S lineup now
includes “Sustainapack”
Regarding sales of consumer-use FUJITSU alkaline batteries, in late March 2023,
FDK began selling products with enhanced continuous discharge performance athome centers, supermarkets, and electronics retailers nationwide.
FUJITSU alkaline batteries come in three series: Premium S, High Power,
and Long Life Plus. All products, from D to AAA, employ the newly developed“passivation block technology” to significantly improve continuous discharge
performance, with the Premium S (AA) achieving an approximately 40%
performance increase.

Ni-MH battery “HR-4/3FAUP”

Nickel–zinc battery “ZR-4/3FAUP”

Also, in order to contribute to achieving the SDGs (Sustainable Developmentof these measures, the FDK Group works to develop new products, including a

Goals), “Sustainapack,” which uses 100% paper packaging, something thatnext generation of batteries able to provide customers with new added value

has been heavily requested by our customers, has been added to our productderived from the distinct technology cultivated in the battery and electronic

lineup to coincide with the launch of “Premium S.”

Environmental Conservation
Activities

Examples of Initiatives

developed over many years for use in Ni-MH batteries and the zinc negative

FDK has developed the high-output Ni-MH battery “HR-4/3FAUP” for power

Relationships with Employees ur offerings enable reliable applications for clean and safe electric energyO
to corporate and individual users that support people’s lifestyles.

battery that applies the positive electrode and structural technologies

power backup applications

Relationship with Society

Initiatives Supporting Relationships with Customers and Suppliers

Shipments begin of high-output Ni-MH battery “HR-4/3FAUP” fordevice businesses thus far.

33

FDK GROUP SUSTAINABILITY REPORT 2023

FDK GROUP SUSTAINABILITY REPORT 2023

34

Relationships with Customers and Suppliers
Governance

FY2022 Achievements

Human
RightsLabor
Practice

Environment

Fair Trade

ConsumerIssuesCommunity

accordance with quality-related regulations, etc., drawing on a wide range

share other information such as expertise and examples of defects. We areof knowledge not only from the department itself but also from other related

We have pursued mass production of long-life batteries for the in-vehicle accessory market, high-capacity batteries for power backup applications, and electrode platesalso adopting a management-side approach, such as by establishing Group-

departments, thereby ensuring more objective assessment.

for Ni-MH batteries for use in large storage batteries.

wide Quality Management Committees under the supervision of senior

Alkaline batteries

management, and by having senior management personnel confirm

We have worked to improve discharge performance to meet market needs and to introduce packaging with reduced environmental impact.

improvement activities at work sites.

Ni-MH batteries

2. Green Procurement Initiatives
The FDK Group contributes to the materialization of a sustainable society by

Lithium batteries

conducting business activities that consider the environmental burden and

We are working to improve energy density to serve the market for next-generation smart meters for the carbon-neutral era.
Electronic devices
We are working to reduce CO2 emissions (carbon neutrality) by adopting low-temperature solder.
All-solid-state batteries

Improvement Processes of Actions to Strengthen Quality Assurance

supply environmentally friendly products. The FDK Group provides

1. In order to implement the FDK Group’s quality policy, each verification

environmentally friendly products to customers by procuring and using eco-process, from product planning to mass production transfer, is reviewed infriendly materials based on the FDK Group Green Procurement Standards.

the next generation. In addition, we are preparing to meet a variety of market needs, such as by working with the Electronics Division to develop modules with built-in
charging circuits.

Quality Assurance System
President & CEO

Research and Development

Quality Management System

We have developed and prototyped battery modules and battery packs with battery management functions that utilize our patented cell balance technology. Goingforward, we will explore elemental technologies for smart battery modules as part of the development of e-MaaS solutions, and pursue possibilities for the power

Improvement activities: Check activities on-site by top management

solutions business.

Convene Group-wide Quality Management Committees

Policy and Quality Action Guidelines and will always undertake quality assurance

FDK Group Quality Policy

activities. As of March 2022, seven of our sites, including those overseas, have

“We will provide customers with quality they can rely on.”acquired ISO 9001 certification, and four have acquired IATF 16949 certification.

Philosophy
Our mission is to develop and supply high-quality, safe, and environmentally

FDK Group Corporate Conduct Guidelines
FUJITSU Way

friendly products that satisfy customers through a basic quality-first approach.

Therefore, every department takes customer-oriented actions throughout

Manufacturing Departments

Reliability Assurance
Departments

Engineering Departments

Overseas Group Companies

Committee: Product
Safety Promotion

Quality Control Departments

each step from sales to research, planning, development, design, productionand even customer service to provide more precise quality management.

Quality Action Guidelines

Work to build an abundant future
together with customers and society

Chart of Each Quality Assurance Verification Process

Quality Policy: “We will provide customers with quality they can rely on.”

1. We will make quality requests from customers our highest priority and takeswift pertinent action to heighten customer satisfaction.
2. We will strengthen fundamental activities in the development stage andIncreasing corporate value

Planning

DesignAssessment/testing

Customer satisfaction

Relationships with Employees

Continually strive to ensure product andservice quality and safety in all aspectsof our business activities

Sales Group

Quality Control Departments

Committee: Product Chemical
Substances Management

The FDK Group knows it must never cause any grave quality issues or violate
the laws or regulations of each country worldwide.

Business Group

Quality Assurance Division

Relationship with Society

Development with Considerations for Quality and Safety

Relationships with Customers
and Suppliers

In order to meet a wider range of applications, we are working to improve durability in harsh environmental conditions and to develop new materials and processes forManagement Systemcompliance, conduct education to nurture human resources, and horizontally

incorporate quality, price, delivery, and environmental considerations into
production to help prevent quality issues at the production stage, improve

Quality Assurance Initiatives

performance.

In order to provide quality products and services that satisfy the function and

3. W
 e will continually enhance risk management throughout various aspects ofperformance requirements as well as other customer needs, FDK fosters

compliance from product safety to the chemical substances contained in products.

cooperation between management and other various departments. This

4. We will improve manufacturing to thoroughly reduce any loss of quality,

necessitates the participation of every employee in activities across every

such as process waste and losses from complaints.
5. We will continually improve the quality management system to execute
more effective quality management.

process of its corporate activities. The FDK Group engages in collaborative

Risk escalation

Risk review (management, environment, facilities), design review, etc.
Reliability assessment of components and products
Reliability assessment of systems

Judgmentforshipping

Storing, sharing and use of knowledge
Quality status monitoring and improvement

Support improvement activities through selection, assessment and regular audits of suppliers

activities linked to those of each business site, including those overseas,

Environmental Conservation
Activities

profitability, strictly adhere to delivery dates, and improve environmental

across a diverse product line-up.
Quality Assurance Division actively works to share information with all

35

Quality Assurance Systembusiness divisions to drive these activities, formulate quality proposals,

The FDK Group has built a quality management system to achieve the Quality

escalate responses in the event of problems and quality issues related to

FDK GROUP SUSTAINABILITY REPORT 2023

FDK GROUP SUSTAINABILITY REPORT 2023

36

Relationship with SocietyR esponding to heightened demands for nonfinancial information disclosure

15118

FDK published a CSR report in 2022 and made every effort in disclosing non-Relationships with Business Partners

financial information.

We conducted CSR surveys of our component suppliers, personnel

Response to Customers

dispatching companies, outsourcers, cafeteria providers, security companies,

We provided information in response to 41 inquiries for company information

etc., and shared the results with such business partners.

and other inquiries.

Relationships with Employees

Response to the Media, Shareholders, and Investors

Monthly labor-management liaison meetings were held to exchange views.

• FDK provided accurate explanations to 118 inquiries from the media,

We also conducted an employee satisfaction survey, analyzed the results,
and took action accordingly.

shareholders, and investors.
• In April 2023, we published our “R2” Mid-Term Business Plan

Contributing to the Local Community• When announcing financial results, we have continued to publish

Some activities had to be canceled due to the COVID-19 pandemic, but those“Explanatory Materials on the Financial Results and Progress of the Mid-activities that were possible were conducted at each of our sites.

Term Business Plan” separately from the financial statements.

Number of trainees withdisabilities accepted forcompany training

Number of local clean-up
activities

4

14

Number of local events joinedby FDK

160

Number of “The Sound ofBatteries Powered by the Sun”
concerts held

31

20

Contributing Activities for Local Communities and Local Residents
Each of our locations conducts community service activities for local

Contributing Activity Topics

communities and local residents.

Exhibition of artworks by people with disabilities

Examples of Activities

Since FY2021, the FDK Group has been engaged in activities aimed at

1. Cleanup activities around our facilities

supporting the financial independence of people with disabilities who work at

2. Provision of used stamps, Bellmarks (fundraising tokens for schools), PET

vocational aid facilities or at home.

bottle caps, etc. to welfare councils and local schools

As part of these efforts, we exhibited three artworks by artists with disabilities

3. Holding of environmental classes at local schools

at our 73rd anniversary ceremony on February 1, 2023, with the cooperation of

4. Provision of disaster supplies to food banks“Art Connect Shizuoka,” a non-profit organization based in Shizuoka Prefecture.

5. Cleaning roadside service stations, weeding flower beds, and planting flowers

The purpose of this exhibition was to help build a society that recognizes

6. Receiving trainees with disabilities

diversity through art and allows all people to live their lives in their own way, as

7. Exhibition of artworks by people with disabilities

well as to make art more accessible and familiar to the participants.

8. Purchasing goods from vocational aid facilities and selling them at our

Initiatives Supporting Relationships with Society
Communicating and Collaborating with Stakeholders

The works were rented for three months after the anniversary ceremonyand displayed in the cafeteria of the Kosai Plant. The amazingly rich colors and9. Participation in local traffic safety activities

genuine worldview of the works were heartwarming, inspiring, and energizing,

10. Cooperation with blood drives

and we were able to enjoy them over the three months they were on display.
The FDK Group as a whole will continue to promote a deeper understanding

Regular contributions to the local communityof people with disabilities and actively provide financial support.

works to heighten corporate value by continually engaging in corporate
activities that contribute to society through proper disclosure of information

understanding of the many needs and expectations of its stakeholders andthat should be made public and through dialogue with stakeholders, which ispursue business activities to meet these needs and expectations. FDK Group

reflected in business activities.
Exhibition of artworks bypeople with disabilities(Kosai Plant)

FY2023 Targets
Releasing Sustainability Report

Improving two-way communication with suppliers

Disclosing accurate information when responding to requests from customers

Continually engage in social contribution activities with local communities,

Studying the implementation of dialogue with the media, shareholders, andresidents and other stakeholders

Lake Hamanako Cleaning Operation(cleanup activity)(Kosai Plant, Washizu Plant)

investors, including information disclosure at general shareholders’ meetings

Environmental Conservation
Activities

As a good corporate citizen, the FDK Group will pursue a thoroughRelationships with Employees

business sites

Basic Concept

Community

Relationship with Society

Number of communications
with media, shareholders, andinvestors

ConsumerIssues ommunicating and Collaborating with Stakeholders
CD isclosing correct information for the request from customers
New addition of research and development content
to our website
Engaging in social contribution activities with local
communities, residents and other stakeholders

3
Number of survey responses
from customers about CSR/
responsible minerals
procurement

Fair Trade

Relationships with Customers
and Suppliers

Number of Battery-making
Class sessions held

Environment

FY2022 Achievements

Highlights of Relationship with Society
Number of factory tours

Labor
Practice

Management SystemP roceeding communication opportunities withstakeholders

Human
RightsThe FDK ApproachSocial Requirements

Disclosing accurate, transparent information

Governanceand on the website

Environmental classes at local schools (Takasaki Plant)

37

FDK GROUP SUSTAINABILITY REPORT 2023

Flower planting in roadside service station flowerbeds (Tottori Plant)

Sales of goods from vocational aid facilities (Kosai Plant)

FDK GROUP SUSTAINABILITY REPORT 2023

38

Relationships with Employees
Social Requirements

Governance

The FDK ApproachEmbracing diversity and inclusion
Creating work-friendly environments
Developing human resources for their contribution

Labor
Practice

Environment

Fair Trade

ConsumerIssuesCommunity

Diversity Initiatives

The Diversity Promotion Office strives to foster respect for diversity while

The FDK Group launched the Success Support Project for Women and set up

working to create a work-friendly environment.

the Office to Support Women’s Success for the purpose of expanding and

The Diversity Promotion Office comprises an office manager, staff, promotion

supporting opportunities for women to succeed. The Office to Support

members (appointed from each business division) as well as advisors from

Women’s Success was renamed the Diversity Promotion Office on April 1,

human affairs and the labor union led by the director in charge of corporate

2017.

affairs.

to society and the planet

Highlights of Relationships with Employees

Since April 2010, in accordance with the action plan based on the Act on Advancement of Measures to Support Raising the Next Generation of Children,
the FDK Group has been actively pursuing work-life balance in order to realize an environment where each employee can work with vigor and satisfaction.

Ratio of non-Japaneseemployees(Domestic business sites)

Employment rate of persons
with disabilities

19

4

0.8

2.42

Days of paid leave taken/per
person/year

Number of employees using
the Childcare Leave Program

Number of consultations withthe human resources hotline

%

%

%

We have also drawn up an action plan in accordance with the Act on Promotion of Women’s Participation and Advancement in the Workplace, which cameinto effect in April 2016. We will continue striving to be a company where both men and women can play an active role.

About the Stage 1 Action Plan
In order to further support women’s advancement, we drew up an action plan, as follows.

1. Plan period

15.0

21

0

Five years from April 1, 2016 to March 31, 2021

2. Our challenges
The culture and work environment are not supportive of female employees raising children.

• Workplace management is inadequate in some areas, making it difficult for women to continue working while raising children due to difficulties
in balancing work and family life.

Relationship with Society

Employment rate of female
employees

Number of female employees
in management andsupervisory roles

Relationships with Customers
and Suppliers

Action Plan Based on the Act on Promotion of Women’s Participation and Advancement in the
WorkplaceManagement System ork style reforms, creating environmentsW
conducive to workEquality in hiring (post-retirement rehiring, hiring ofpeople with disabilities, women’s work-placeparticipation and advancement)

Human
Rights• The workplace culture is not conducive to supporting those who continue to work after giving birth or while raising children.
• There is insufficient understanding of flexible working styles in the workplace, making it difficult to take time off suddenly, such as when a child is

3. Quantitative targets

Embracing Diversity and Inclusion
Basic Concept
Policy Orientation
FDK Group promotes diversity in human resources irrespective of nationality,

Increase the percentage of women in managerial positions by 125% or more relative to FY2015.
• Plant practical training and trial employment have been conducted.
• We are systematically promoting the installation of barrier-free, multipurpose restrooms.
• In FY2022, the elevator in Building 3 at the Kosai Plant was renovated.

policy to enable individuals to grow with the company.

(2) Improving the personnel treatment system

4. Initiative and implementation period details
Initiative 1: Management-led implementation of work-life balance
April 2016 —	Success Support Project for Women organized to regularly check the status of activities and share information on various
measures and outcomes.
October 2016 —Events hosted by the Office to Support Women’s Success on a yearly basis.

Ideal Form

• An hours-based paid leave system has been introduced.

Initiative 2: Promoted the creation of a comfortable work environment to enhance workplace responsiveness and management

Our Ideal Form is for everyone working in the FDK Group to refuse to engage(3) Proceeding the educational activity such as trainings and seminars

April 2016 —in any form of discrimination and welcome diverse human resources with• We conducted management training as planned.

December 2016 — Conducted management training to renew awareness among male managers and workplace leaders.

actual action.

• A seminar was held to promote men’s involvement in housework andJune 2017—

Examples of Initiatives and Other Measures(4) Conducting an employee satisfaction survey

October 2016 —Consideration given to expanding the workplaces and job areas where female employees are assigned.

(1) Creating a working environment that is friendly for all people• We conducted an employee satisfaction survey for all employees. (Response

February 2017 —Plan implemented for active recruitment of female employees in conjunction with the personnel and recruitment plans.

• We have put in place a work environment that is comfortable for people with

rate: 99.1%) To resolve the issues raised by the survey results, we

childcaredisabilities and LGBTQ+ people to work in.

FDK GROUP SUSTAINABILITY REPORT 2023

Planned and reviewed various seminars and training programs.
Women’s career training held to renew awareness among female employees.

Initiative 3: Active recruitment of female employees and implementation of recruitment plans

Environmental Conservation
Activities

gender, sexual orientation, age, ability/disability, religion or values as a basic• A new personnel system (Kaonavi) was introduced.

39

sick.

Relationships with Employees

Initiatives Supporting Relationships with Employees

conducted a training program on organizational revitalization.

FDK GROUP SUSTAINABILITY REPORT 2023

40

Relationships with Employees
Governance3. Conducting training that takes talent management into accountWe provide training to develop the next generation of human resources.

In order to further promote women’s advancement and create a work environment where both men and women can work for many years, we drew up
an action plan, as follows.

4. Expanding the “Dojo”

knowledge, abilities, and mental and physical skills2) Activities to enhance communication between different departments

Five years from April 1, 2021 to March 31, 2026

Environment

Fair Trade

ConsumerIssuesCommunity

Purpose of the “Dojo”
1) For FDK Group employees to enrich their lives by developing deeper
expertise, education, and experience in various fields.

Our “Dojo” conducts the following activities.
1) Self-improvement activities in a variety of fields to hone employees’

1. Plan period

Labor
Practiceand generations and to strengthen the organization

2) To renew awareness of self-improvement, put in place an environment for
self-improvement, build a corporate culture in which employees work hardto help and compete with each other, and strengthen organizational
capabilities by passing down techniques and conducting exchange between

Management System

About the Stage 2 Action Plan

Human
Rightsgenerations.

2. Our challenges
Challenge 2: A workplace culture is needed that supports people who continue to work after giving birth, while raising children, while
caring for family members, etc.
Challenge 3: There is insufficient understanding of flexible working styles in the workplace, making it difficult to take time off suddenly.

3. Targets and details of initiatives and implementation period

Selected Personnel Education

Strengthening Stratified Training(Increasing Overall Quality of Work and Management)

Nurture Global Business and Future LeadersEnhance the comprehensiveness of stratified training tailoredto each level and role from junior to senior employees

Nurture business leaders who are able to actively participate
globally from a long-term perspective

Cultivate a Climate Diverse “Individuals” Can
Actively Participate

Promoting Professionalism

Improve human resource support and the motivation of eachindividual through diversity promotion and career support.

Enhance high-level specialized training and nurture professional
human resources (horizontally expand specialized in-house training)

Goal 1: Increase the percentage of women in managerial positions by 150% or more relative to FY2021.
Initiative details
April 2021 —	Regular meetings of the Diversity Promotion Office, which supports the advancement of women, were held to confirm thestatus of activities and share information on various measures and outcomes.
April 2021 —Provided a self-development curriculum to support individual career advancement.

June 2021 —Increased the number of female participants in training programs for next-generation leaders.

September 2021 — Held management training for managers and supervisors.
October 2022 —Held exchanges of viewpoints with female managers and supervisors.

Goal 2: Increase the rate of use of flextime, telework, and other systems that contribute to flexible working styles, by 25% relative to FY 2021.

Picture of a Global Human Resource

Initiative details
April 2021 —Improved the system and raised awareness of it on a regular basis.

June 2021 —Established an environment for telework.

September 2021 — Conducted education on management points and issues regarding telework.

Developing Human Resources for Their Contribution to Society and the Planet
Human Resources Development
FDK Group strives to nurture human resources by categorizing humanresources development into four main themes.
We are working to enhance the training required for each position, fromnew hires to executives.
2. Professional development training

41

We will work to support and motivate individual personnel through career
design training, career support, and other programs.

Possesses language and communications
skills required during the execution stage

History, products, business region, and management
knowledge of FDK Culture, history, society,and economic state of other countries

Language and communication skills

1. Review of stratified education
The curriculum content has been refined to be more specific to the roles
and expectations of each particular employee level. For younger employees

certifications, attend specialist seminars, and adopt cutting-edge

in particular, we incorporated content that would lead to competency
evaluations in conjunction with the operation of the new personnel system.
2. We provide opportunities for personal study for self-development.

We are working to encourage and promote human resource development

We provide convenient opportunities for employees to learn and improveand strengthen management skills that can help revitalize organizations,

their skills through e-learning.

FDK GROUP SUSTAINABILITY REPORT 2023

and learns about other countries

Review of Various Education and Training Programs

encourage employees to take various examinations, including technicaltechnologies and skills.

Considers both local andand global human resource development (language study abroad).
4. Supporting the growth of a diverse range of individuals

In order to nurture professionals in their respective fields of expertise, we

3. Business leader development

Knows about their own company

global perspectives as a whole

Environmental Conservation
Activities

1. Stratified training (higher educational standards)

such as next-generation leader training, developmental leader training,

Employee who possesses the skills (language
and communication skills) to think about andexecute matters from a global perspective

Relationships with Employees

September 2021 — Raised awareness of the importance of work-life balance at management training seminars.

Employee who has sufficient knowledge about
FDK (their company) and supports operations ina multicultural environment while respecting
the traditions of different countries

Relationship with Society

Higher Standard Education

Relationships with Customers
and Suppliers

Challenge 1: Workplace management is insufficient in some areas, and the use of the system is not well understood.

FDK GROUP SUSTAINABILITY REPORT 2023

42

Environmental Conservation Activities
Social Requirements

The FDK ApproachGlobal warming prevention
Waste reduction

10th Environmental Action
Plan of 7 target items

6

achieved

Achieved at

3 4
out ofReduction of greenhouse
gases

Reduction of chemical
substances

FY2023, we accelerated our goal to achieve 100% by 2030. The FDK Groupwill continue to work towards carbon neutrality in line with Fujitsu’s goals. In

ISO 14001 Certification Status

FY2022, 8% of the electricity used by the entire FDK Group was fromFDK Corporation• Head Office, Kosai Plant, Washizu Plant, Takasaki Plant, Tottori Plant• Sales offices: Tokyo Metropolitan Area, Sapporo, Sendai, Nagoya, Osaka,renewable energy sources.

Green Procurement
The FDK Group considers how to improve global environmental problems, andHiroshima, Fukuoka, Okinawa Sales Center
Domestic group companies

is working to contribute to the sustainable development of society by• FDK ENGINEERING CO., LTD.

conducting business activities that consider the environmental burden and• FDK PARTNERS CORPORATION

supply environmentally friendly products. As part of these efforts, it is essential

Overseas group companies

that the products we obtain from our suppliers are also environmentally• FUCHI ELECTRONICS CO.,LTD. (Taiwan)

friendly, and we have summarized this idea in the FDK Group Green• XIAMEN FDK CORPORATION (Xiamen, China)

Procurement Standards.
In order to coexist with the global environment and manufacture productsof zero CO2 emissions by 2050. In addition, as part of the RE100 (aninternational initiative that aims for companies to supply 100% of the electricity
used in their business activities from renewable energy sources), the company

Reduction of waste

Community

activities with renewable energy sources by 2030, and 100% by 2050. In

The Fujitsu Group’s medium- to long-term environmental vision sets a target

Local environmental efforts
and social contribution
activities

ConsumerIssuesworking on FDK Group premises, and share it with all stakeholders.

Our Plan for Carbon Neutrality

sites

Fair Tradeemployees, including those of affiliated companies, as well as partners

Energy consumption per unit

Target achieved Target achieved

Environment

has set a target of supplying at least 40% of the electricity used in its businessthat work in harmony with it, the FDK Group is conducting Green Procurement,
which takes into account environmental aspects in addition to the aspects ofquality, cost, delivery, and service that we have traditionally pursued.
* FDK Group Green Procurement Standards, Version 7.0(https://www.fdk.co.jp/kankyou/green_proc.html)

FDK Group Environmental Policy

Target achieved Target achieved Target achieved Target achieved

The FDK Group will pursue environmental management based on the following philosophy.
Philosophy

Relationship with Society

Adoption of renewable energy

Design for environment

Labor
Practice

Relationships with Customers
and Suppliers

Highlights of Environmental Conservation Activities

Human
RightsManagement SystemP romote the development of environmentally friendly
products
Reduce greenhouse gas emissions
Adoption of renewable energyReduce the amount of waste generated

Reduction of environmental impacts

Governance

As a Smart Energy Partner that assembles advanced technologies, the FDK Group would like our customers to best utilize electric energy in a safe andefficient manner, and it hopes to contribute to the materialization and development of a sustainable society. Moreover, the FDK Group will promote
environmental initiatives as efforts undertaken by all employees whether FDK Group companies or partners through fair corporate activities which comply
with environmental laws and regulations to pass down a beautiful global environment rich with nature to the next generation.

Protecting the Global Environment
Basic Concept
As a member of the Fujitsu Group, the FDK Group recognizes the need for action

environmental laws and regulations to agreements made withtoward the realization of an independently sustainable and recycling-oriented

administrative bodies related to FDK business activities.

society with initiatives toward environmental conservation that follow the business

4. Undertake initiatives through relevant departments using the items below

FDK Group Environmental Management Framework
Group Environmental
Management Committee
President & CEO

Each Location(Production site/sales office)as prioritized themes:

and region, greenhouse gas reduction, waste reduction, and thorough management(1) Promote eco-conscious product development.

of chemical substances but also the reduction of our environmental impact through(2) Promote energy savings.

the products that FDK provides. FDK established the FDK Group Environmental(3) Properly manage chemical substances.

Policy to promote even more robust Group-wide management environment.

(4) Reduce waste and promote recycling.

The FDK Group has formulated a plan that conforms to the Fujitsu Groupenvironment impact of the FDK Group by strategically and continuously(5) Promote local environmental efforts and social contribution activities.

Environmental Action Plan and it has been promoting environmental initiatives.

expanding environmental conservation activities to all FDK business regions.

(6) Advocate initiatives for suppliers and customers to reduce CO2 emissions.

Through these policies and targets, FDK Group will contribute to reducing theResults for FY2022 are shown on next page.

1. Promote and continually enhance environmental management through an

5. Set environmental goals and targets to achieve in the Environmental Policy

environmental management system that complies with the ISO 14001.

and promote environmental management as an effort undertaken by all

2. Promote the sustainable use of natural resources, measures to combat

FDK Group employees, including those of affiliated companies and group

climate change, protection of the ecosystem, and measures to prevent
environmental pollution.

FDK GROUP SUSTAINABILITY REPORT 2023

Basic Concept

environmental impact of customers and society while striving to reduce theEnvironmental Conservation
Activities

Companywide policies andother vital deliberations/decisions
Action plan formulation

activities of the company, which include not only legal compliance in each country

FDK Group Environmental Policy Action Guidelines43

3. Comply with all requirements that have been agreed upon fromRelationships with Employees

Environmental Conservation Initiatives

companies.
6.	 Raise awareness about the Environmental Policy among all FDK GroupFDK GROUP SUSTAINABILITY REPORT 2023

44

Environmental Conservation Activities
Governance

FDK Group 11th Environmental Action Plan FY2022 Achievements
FY2022 Action Plan

(t)
60

1,200

50

30
20

400

10

200
0

2016

Kosai Plant

2017

2018

Takasaki Plant

2019

Tottori Plant

2020
Washizu Plant

Items

FDK will continue to engage in projects that contribute to society and theenvironment through the activities that utilize the features of FDK businesses.

35,01036,143

425
432

(kg)

FY2022Previous fiscal year

0
0

0
0

0
0

0
0

–
–

(kg)

FY2022Previous fiscal year

–
–

–
–

–
–

–
–

–
–

(kg)

FY2022Previous fiscal year

61
341

–
–

787
942

–
–

–
–

FY2022
Soot (measured density)(g/Nm3) Previous fiscal year

–
–

–
–

–
–

–
–

–
–

FY2022(m3) Previous fiscal year

50,453
48,37020,25424,08934,01631,08835,01036,143425
432

FY2022Previous fiscal year

170
109

189
206

456
439

281
329

7
6

XIAMEN FDKCORPORATION

FY2022(t-CO2) Previous fiscal year

2,052
2,200

2,765
2,726

Water usage

FY2022(m3) Previous fiscal year

15,783
14,64917,00813,228(kg)

FY2022Previous fiscal year

–
–

–
–

(kg)

FY2022Previous fiscal year

–
–

–
–

(kg)

FY2022Previous fiscal year

–
–

–
–

FY2022
Soot (measured density)(g/Nm3) Previous fiscal year

–
–

–
–

FY2022(m3) Previous fiscal year

12,626
11,71917,00813,228FY2022Previous fiscal year

11
11

41
39

Waste water

4,000

Kosai

2,000

Sanyo

Takasaki

Tottori

Washizu

The data for Sanyo is current as of June 2019.

45

FDK GROUP SUSTAINABILITY REPORT 2023

2021

2022

FDK ENGINEERING

0

Waste
2015

SUZHOU FDK

2016

2017

XIAMEN FDK

2018

2019

FUCHI ELECTRONICS

2020

2021

2022

FDK INDONESIA(t)

Environmental Conservation
Activities

CO2 emissions

NOx emissions

6,000

FUCHI ELECTRONICS CO.,LTD.

Relationships with Employees

67,87657,78812,0008,000

FDK Engineering

21,212
24,552

SOx emissions

10,000

Washizu Plant

50,453
48,370PRTR chemical emissions

14,000Tottori Plant

FY2022(m3) Previous fiscal year

Change in CO2 Emissions (Overseas) FY2015 to FY2022(t)
16,000Takasaki Plant

Water usage(Unit)

2020

2022

151
159

Items

2019

2021

3,189
4,794

(t)

2018

2020

11,91912,220

Waste

2017

2019

FUCHI ELECTRONICS CO., LTD.

12,71815,426

Waste water

2016

2018

4,422
4,455

NOx emissions

our environmentally friendly rechargeable batteries aimed at renewable energy.

2015

2017

Relationship with Society

whose music is based on the theme of protecting the global environment, and

0

2016

XIAMEN FDK CORPORATION

FY2022(t-CO2) Previous fiscal year

SOx emissions

sunlight, representing a collaboration between Yumiko Orishige, a musician

10,000FDK ENGINEERING

CO2 emissions

These concerts are powered entirely from Ni-MH batteries charged using

20,00002022

Kosai Plant(Unit)

PRTR chemical emissions

30,0002021

Environmental Performance Data by Business Site

only claviola performers.

40,000Community

600

Batteries Powered by the Sun” concerts by Yumiko Orishige, one of the world’s

50,000ConsumerIssues40800

As part of its activities for contributing to society, FDK supports “The Sound of(t)
60,000Fair Trade

Change in Amount of Waste (Overseas) FY2016 to FY2022

(t)
1,400

1,000

Social Contribution Activities

Change in CO2 Emissions (Japan) FY2015 to FY2022

Environment

Relationships with Customers
and Suppliers

Develop products that contribute to resource conservation (at least one at each site)
Develop products that contribute to improved resource efficiency (at least one at each site)
Reduction of greenhouse gases Limit overall CO2 emissions from energy consumption at the whole FDK Group in Japan to 31,311 tons or less (coefficient: 0.57)
Improve energy consumption by 1% compared to the previous year at each site using the energy consumption intensity as
Energy efficiency
an indicator.
Adoption of renewable
Adopt 40% renewable energy across the FDK Group by FY2030 (equivalent to 8% of FY2022 target)
energyImprove emissions of PRTR substances used at each site by 7% by the end of FY2022 compared to FY2015, using
Reduction of chemical
substances
emissions intensity as an indicator.
Improve the amount of waste generated by 7% compared to fiscal 2015 at each site by the end of fiscal 2022, using theReduction of waste
basic unit of waste generation as an indicator.
Conservation of water
Study of measures to reduce water consumption
resources
Local environmental efforts Conduct at least 15 initiatives a year toward local environmental efforts and social contribution activities throughout the FDK
and social contribution
Group
Environmentally Conscious
DesignLabor
Practice

Management System

Items

Change in Amount of Waste (Japan) FY2016 to FY2022
Overall
Evaluation
( / )

Human
RightsNote: CO2 conversion coefficient 0.57 (t-CO2/MWh)

The data for Suzhou FDK is current as of September 2018.
The data for FDK Indonesia is current as of September 2020.

FDK GROUP SUSTAINABILITY REPORT 2023

46

Overview of Group Companies

As of November 1, 2023

Corporate Profile
CompanyName

FDK CORPORATIONFounded1950

Head Office

Shibaura Crystal Shinagawa Bldg., 1-6-41 Konan, Minato-ku, Tokyo
108-8212 Japan

Capital31,709 million yen (as of March 31, 2023)

Net Sales

FY2022 (April 1, 2022 to March 31, 2023)
Consolidated: 62,784 million yen

Employees

Consolidated: 2,436 (as of March 31, 2023)

Description ofBusiness

Manufacture and sale of dry cell batteries, rechargeable batteries,
electronics-related materials and components, and goods applying
such products

Main Products

Alkaline batteries, Ni-MH batteries, lithium batteries, carbon–zincbatteries, power storage systems, light products, battery production
systems for batteries, switching power supplies, toner, various
modules

7

23

26

2
2

12

13
25

8

27

24

3
1
4
1

11

6

9
10

12

Hamamatsu

13

5
1

2

Group Companies (3 manufacturing-related companies)
Head Office/Business Site/Sales Office
Head OfficeBusiness Site
1

Head Office

Address

TEL

ISO14001

ISO 9000ʼs and IATF 16949

Shibaura Crystal Shinagawa Bldg., 1-6-41 Konan, Minato-ku, Tokyo 108-8212 Japan

Tel: +81-3-5715-7400

EC98J2005–

Business Site
Business Site

Address

TEL

ISO14001

2

Kosai Plant

2281 Washizu, Kosai-shi, Shizuoka 431-0495 Japan

TEL: +81-53-576-2151

EC98J2005

ISO9001：4745

3

Takasaki Plant

307-2 Koyagi-machi, Takasaki-shi, Gunma, 370-0071, Japan

TEL: +81-27-361-7575

EC98J2005

ISO9001：4184927
IATF16949：370138

4

Tottori Plant

28 Ohta, Iwami-cho, Iwami-gun, Tottori 681-0063 Japan

TEL: +81-857-73-1771

EC98J2005

ISO9001：4656683
IATF16949：376864

5

Washizu Plant

614 Washizu, Kosai-shi, Shizuoka 431-0431 Japan

TEL: +81-53-576-2111

EC98J2005

ISO9001：JQA-0459

Address

TEL

ISO14001

ISO 9000ʼs and IATF 16949

Tokyo Metropolitan
Area Sales Office

Shibaura Crystal Shinagawa Bldg., 1-6-41 Konan, Minato-ku, Tokyo 108-8212 Japan

Tel: +81-3-5715-7436

EC98J2005–

7

Sapporo Sales Office

Floor 4, Tsukamoto Bldg. 7 Goukan, 13-9-1 Kita 7 jo-Nishi, Chuo-ku, Sapporo-shi, Hokkaido 060-0007 TEL: +81-11-798-4699

EC98J2005–

8

Sendai Sales Office

Tsutsujigaoka BK Terrace, 4-12-1 Tsutsujigaoka, Miyagino-ku, Sendai-shi, Miyagi 983-0852 JapanEC98J2005–

6

9

Nagoya Sales Office

10 Osaka Sales Office47

TEL: +81-22-293-5265

Floor 4, Meieki East Bldg., 5-28-1 Meieki, Nakamura-ku, Nagoya-shi, Aichi 450-0002 Japan

TEL: +81-52-561-3141

Terasaki No. 2 Bldg., 1-8-29 Nishimiyahara, Yodogawa-ku, Osaka-shi, Osaka 532-0004 Japan(Battery Sales) Tel:
+81-6-6350-4883(Electronic Device Sales)
Tel: +81-6-6350-4877

EC98J2005

EC98J2005

ISO14001

1 FDK ENGINEERING CO., LTD.

EC98J2005

ISO9001：JQA-QMA15241

21 XIAMEN FDK CORPORATION

No. 16, Malong Road, Huoju Garden, Huoju Hi-Tech District, Xiamen, Fujian, China
TEL: +86-592-603-0576

00120E30145R4／3502

ISO9001：00120Q30430R4M／3502
IATF16949：393676

13 FUCHI ELECTRONICS CO., LTD.

No. 355, Section 2, Nankan Road, Rutsu Shan, Tao Yuan, Taiwan
TEL: +886-3-322-2124

4E9E001-03

ISO9001:2015/69024.3
IATF16949:0339560

ISO 9000ʼs and IATF 16949

Group Companies (7 sales and other companies)
Business Site

Address

ISO14001

ISO 9000ʼs and IATF 16949

21 FDK PARTNERS CORPORATION

2281 Washizu, Kosai-shi, Shizuoka 431-0431 Japan
TEL: +81-53-576-3121

EC98J2005−

2 FDK AMERICA, INC.

(Head Office)	350 Cobalt Way Sunnyvale, CA 94085, U.S.A.
TEL: +1-408-746-6815(Dallas Office) 2801 Telecom Parkway, MS C1R, Richardson, Texas 75082, U.S.A.
TEL: +1-972-231-2531

23 FDK ELECTRONICS GMBH

Einsteinring 24, 85609 Aschheim/Munich, Germany
TEL: +49-89-3306680-0−

ISO9001：91110693／3

24 FDK SINGAPORE PTE. LTD.

4, Leng Kee Road. #04-08 SiS Bldg., Singapore 159088, Singapore
TEL: +65-6472-2328−−

25 FDK HONG KONG LTD.

Suite 1607-1608A, 16/F., Tower 3, China Hong Kong City, 33 Canton Road, Tsim Sha Tsui,
Kowloon, Hong Kong
TEL: +852-2799-9773−−

26 FDK KOREA LTD.

Room.614, Suseo Hyundai Venture-vill Bldg, 10, Bamgogae-ro 1-gil, Gangnam-gu, Seoul,06349, Republic of Korea
TEL: +82-2-582-8452−−

27 FDK TAIWAN LTD.

8F.-4, No.57, Sec. 1, Chongqing S. Rd., Zhongzheng Dist., Taipei City 100, Taiwan
TEL: +886-2-2311-5161

−

−

–

–

11 Hiroshima Sales Office

UPEC Hikari-machi Bldg., 2-9-27 Hikari-machi, Higashi-ku, Hiroshima-shi, Hiroshima 732-0052 Japan

TEL: +81-82-535-1450

EC98J2005–

12 Fukuoka Sales Office

Ichigo Hakata Bldg., 1-28 Gion-machi, Hakata-ku, Fukuoka-shi, Fukuoka 812-0038 Japan

TEL: +81-92-291-9421

EC98J2005–

13 Okinawa Sales Center

1-9-6 Inanse, Urasoe-shi, Okinawa 901-2128 Japan (Ryukyu Freight Forwarders Co., Ltd T.C. Division)

TEL: +81-98-868-8685

EC98J2005–

FDK GROUP SUSTAINABILITY REPORT 2023

Address281 Hirooka, Hosoe-cho, Kita-ku, Hamamatsu-shi, Shizuoka 431-1302 Japan
TEL: +81-53-522-5280

ISO 9000ʼs and IATF 16949

Sales OfficeBusiness Site

Business Site−

*ISO 14001, ISO 9000, IATF 16949, and other third-party certifications are as of March 31, 2022.

FDK GROUP SUSTAINABILITY REPORT 2023

48

Shibaura Crystal Shinagawa Bldg.,
1-6-41 Konan, Minato-ku, Tokyo 108-8212 Japan
General Affairs and Human Resource Department, Corporate Headquarters
Tel: +81-3-5715-7400 Fax: +81-3-5715-7401
E-Mail: csr@fdk.co.jp