Fujibo Holdings, Inc.

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ESG DATACONTENTS
02 CORPORATE OVERVIEW

18

		

Corporate Philosophy

				

Fujibo Vision		Charter of Conduct		Priority Themes of Environmental Activities,
Support for the TCFD Recommendations

		

About Fujibo Holdings

		Key Management Indicators

		Business Description

06 TOP MESSAGE
07 THE FUJIBO GROUP SUSTAINABILITY		

Basic Policy		Sustainability Management System

		

ESG Basic Policy		Roadmap to the “Desirable Future Position”
of Fujibo Group		Double Materiality in Enhancing Sustainability
Management,Five Materialities

ENVIRONMENT

37

Basic Concept, Environmental Policy

GOVERNANCE				Overview of the Environmental Loads of Business
Activities
		Reduction of Greenhouse Gas Emissions,
Efforts to Reduce Greenhouse Gas Emissions
		Reduction of Environmental Loads on Water
Resources, Efforts to Reduce Environmental Loads
on Water Resources

Basic Concept		Corporate Governance System,
Board of Directors, Audit & Supervisory Board,
Committees, etc.
		Status of Independent Officers,
Evaluation of Effectiveness of Board of Directors
Outside Director’s Message
		Compensation for Officers, Policy and Procedures
for Nominating Candidates for Directors
		

Corporate Officer Skill Matrix

		Reduction and Recycling of Industrial Waste,
Reduction of Environmental Loads of Chemical
Substances, Resource and Energy Saving

		Compliance, Basic Approach to Compliance,
Compliance Management System,
		 Initiatives for Raising Compliance Awareness		Conservation of Biodiversity,
Research on the Ecosystem of Marine Animals“Tsukumi Dolphin Research Summit”

		Compliance Education, Internal Reporting System,
Response to Compliance Violations, Monitoring
the Enhancement of Compliance Awareness				

Relationship with Local Community

Anti-Bribery Policy, Tax Governance

RISK MANAGEMENT

26 SOCIAL		Basic Concept, Priority Themes of Social Activities

		Basic Concept, Risk Management System		Diversity & Inclusion		

Respect for Human Rights

		Risk Determination Process, How to Dealwith Material Risks, Business Continuity Plan		

Human Resource Development

		Safety and Health of Employees		Supply Chain Management

to Support the Active Lives of Female		Quality Assurance

17		Discussion with Ruth Marie Jarman, Outside		Contributing to Local Communities

		

Materiality: Initiatives for Important Themes		Communications with Stakeholders

FEATURES
14		 Promote Resource Recycling -FUKU-NO-WA Project16		“B.V.D. Suzu Bra (Cool Bra) Community”
Director- Promoting Career Development and Work-Life
Balance for Female		Guidelines and Initiatives on Intellectual Property,
Compliance with Anti-Monopoly Act,
Information Security

48 ESG DATA■ SCOPE OF REPORTThe Fujibo Group (Fujibo Holdings, Inc. and its domestic and overseas Group companies)■ REPORTING PERIOD
Mainly for FY 2020 but including certain periods before and after the fiscal year.
■ DATE OF ISSUANCE
November 2021

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Corporate Philosophy
We will always support leading-edge industries
by providing new technologies and products demanded by the times,
capitalizing on our technology and experience cultivated overmore than a century of Fujibo's history.
In this way, we are committed to realizing a more prosperous
and sustainable future for people, society, and the global environment.
The Fujibo Group abides by its corporate philosophy “we will always support leading-edge
industries by providing new technologies and products demanded by the times, and arecommitted to realizing a more prosperous and sustainable future for the people, society
and the global environment.” Our corporate slogan is to become “a high value-added
company leading the future with organic materials technology.” We have always valued thespirit of “Focus on Innovation,” which is to challenge the future and innovate ourselves byleveraging the technologies we have cultivated for more than 100 years since ourestablishment. In order to achieve a sustainable future based on this “innovative spirit,” wewill incorporate the constantly changing demands of the society and the market into ourmanagement strategies by implementing our three visions, and aim to achieve thesedemands as our medium- and long-term goals.
In addition, we will strive to create a prosperous and sustainable future together with our
stakeholders, including shareholders, employees, business partners and local communities,
by establishing a robust governance that emphasizes global environmental stewardship.

Fujibo Vision
Making a Breakthrough and Going ahead of the Times— Guidelines for Being a Manufacturer
We will contribute to human life and industrial development by constantly overcome
challenges to make breakthroughs, such as strengthening the competitiveness of our corebusinesses and creating new businesses in growth markets.

Management with Integrity and Sustainable Growth— Guidelines for Corporate Management
Recognizing the importance of enhancement in our corporate governance and risk
management, we will pursue sincere corporate management that is trusted by shareholders
and other stakeholders in accordance with our corporate philosophy.

Respecting Individual and Fostering Harmony— Guidelines for the Working Environment
We provide each employee with fair opportunities and fair evaluations, and create anenvironment where they can work together to improve through friendly competition. By
respecting the individual, we will create a workplace that fosters competitiveness andteamwork.

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In order to realize our corporate philosophy, the “Fujibo Group Charter of Conduct,” which recognizes the importance of corporate social responsibility, wasestablished as a concrete guideline not only for complying with laws and regulations, but also acting in a fair and honest manner with social common sense.

Charter of Conduct
1. Contribution to sustainable economic growth and social challenges		The Group will develop socially useful and safe products and services to meetcustomers’ expectations, and strive for sustainable economic growth andsolutions to social challenges through innovation and business activities.
2. Fair and sound business activities		The Group will engage in fair and free competition, appropriate transactions andresponsible procurement, and will not provide nor receive improper benefits. The
Group will also maintain a sound relationship with politicians and governments.
3. Fair information disclosure and constructive dialogue with stakeholders
		The Group will proactively and effectively disclose corporate information in atimely and fair manner and engage in constructive dialogue with various
stakeholders of the Group to enhance our corporate value.
4. Environmental initiatives
		Recognizing that efforts to address environmental issues is a common challenge
for all humankind, the Group will work to reduce environmental loads, achieve a
recycling-based society, and reduce environmental risk in all our businessactivities to contribute to the realization of a sustainable society.
5. Respect for human rights		The Group will support universal initiatives related to human rights from aninternational perspective, and carry out management that respects human rights.
6. Customer trust		To obtain customer trust, we will provide appropriate information on our products
and services in accordance with laws and regulations, and will be fully

accountable for quality assurance.
7. Contribution to social engagement and development
		As a good corporate citizen, the Group will proactively participate in the society
and contribute to its development.
8. Work style reforms and enhancement of the work environment		The Group will promote a work style that enhances our employees’ capabilities
and respects their diversity, personality and individuality. In addition, the Groupwill create a comfortable work environment that takes health and safety into
consideration.
9. Thorough crisis management		The Group will thoroughly implement organizational crisis management in
preparation for natural disasters, pandemics, terrorism, cyberattacks and otherevents that threaten civil life and corporate activities.
10. The role of top management		The top management will establish an effective governance system for the Groupin order to implement this Charter. The top management will also encourage our
supply chain to work in accordance with the spirit of this Charter.
			 In the event that a violation of this Charter of Conduct occurs that undermines
the trust of the society, the top management will take the initiative to resolve theproblem, investigate its cause, prevent a recurrence, and will fulfill our
responsibilities.

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About Fujibo Holdings

ENVIRONMENTCATEGORY

Corporate Facts
Company Name
Fujibo Holdings, Inc.
Address:
Tokyo Headquarters
		 1-18-12 Ningyocho, Nihonbashi, Chuo-ku, Tokyo 103-0013, Japan
Osaka Branch		Oak Sakaisuji Honmachi Building,		 1-8-12 Honmachi, Chuo-ku, Osaka 541-0053, Japan
Establishment
March 24, 1896
Capital
6,673,832,000 yen
Representative
Mitsuo Nakano, Representative Director, Chairman and President
Number of Employees 1,156 (Consolidated, as of March 31, 2021)

Polishing Pad
Business
Industrial
Chemicals
Business

SOCIALMAJOR
PRODUCT

GOVERNANCE

MAJOR COMPANY POSITIONING
MANUFACTURING

Industrial
Chemicals

Yanai Chemical Industry Co., Ltd.

Spun Yarn,
Knitted MaterialandLifestyle Apparel Textiles, etc.

Fujibo Textile, Inc.
Thai Fujibo Textile Co., Ltd.

Fujibo Textile, Inc.
Thai Fujibo Textile Co., Ltd.

Secondary
Products such
as Asamerryand B.V.D.

Fujibo Textile, Inc.
Fujibo Apparel Corporation
Jintana Fujibo Corporation

Fujibo Textile, Inc.
Fujibo Apparel Corporation
Fujibo Shanghai Co., Ltd.

Vehicle andAutomotive
Components,
etc.

—

Fujichemi Co., Ltd.

Chemical
Products

Fujibo Textile, Inc.
Fujichemi Co., Ltd.
Tokyo Molding Co., Ltd.

Fujibo Textile, Inc.
Fujichemi Co., Ltd.
Tokyo Molding Co., Ltd.

Business

Key Management Indicators
Net Sales

Operating Income

Ordinary Income(million yen)(million yen)(million yen)

EBITDA(million yen)

（百万円）

（百万円）

（百万円）

（百万円）

50,00010,00010,00010,000

8,000

8,000

8,000

35,89137,09738,70136,93230,0006,000

20,0004,000

10,000

2,000

0

(FY)
（年度）

5,285
3,989

3,779

4,079

2018

2019

2020

(FY)
（年度）

6,000
4,000

5,450
4,269

3,983

4,329

2018

2019

2020

(FY)
（年度）

6,026

5,870

2017

2018

6,348

2,000

0

2017

6,000

7,811

4,000

2,000

0

2017

SALES AND SERVICING

Polishing Pad
for UltraFujibo Ehime Co., Ltd.
Fujibo Ehime Co., Ltd.
Precision Work,
Fujichemi Co., Ltd.
Taiwan Fujibo Precision Materials Co.,
Nonwoven
Taiwan Fujibo Precision Materials Co.,Ltd.
Fabric andLtd.
Artificial Leather
Yanai Chemical Industry Co., Ltd.

Other Businesses

40,000ESG DATA

0

2017

2018

2019

2020

(FY)
（年度）

2019

2020

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ESG DATABusiness Description
Polishing Pad BusinessIndustrial Chemicals Business

Lifestyle Apparel Business

Other Businesses(Chemical Products Business)

Ultra-high precision polishing pads
which are used for processing
semiconductors,” a key partin the digital society

One of the largest domestic
contract manufacturers
specializing
in industrial chemicals

Unique business developmentin apparel production
and sales

Manufacturing of molded items
and metal molds for medical
and precision fields“Semiconductor,” a key part in the digital society, isa device essential to the creation of a sustainable
society as it is used in various fields, including
smartphones, tablets, 4K LCD TVs and hard disks forstorage devices. The business of ultra-high precision
polishing pads maintains a substantial share of the
global market for polishing for the fabrication of
most-advanced logic/memory semiconductor
devices and silicon wafers for semiconductor
substrates, and it supports the realization of asustainable society. Starting with the Nyugawa Plant
i n E h i m e P r e f e c t u r e, w e h a v e u n p a r a l l e l e d
production capacity with five bases in Japan andabroad, and with an organizational structure inwhich development, manufacturing and sales
departments work closely together to provide
products and services, the business will continue tocontribute to the realization of a sustainable society
as the core business of the Fujibo Group. At thesame time, the business will also serve as a driving
force for our own sustainable growth.

The Industrial Chemicals Business, among the top
tier of businesses specializing in contract
manufacturing in Japan, possesses manufacturing
technologies and know-how in organic synthesis
cultivated over many years. The Industrial Chemicals
Business is growing significantly due to the highreputation from customers for the high quality andhigh-mix, low-volume manufacturing required forcontract manufacturing of organic synthesis
intermediates, such as electronic materials including
5G and EV materials, functional chemicals, rawmaterials for pharmaceuticals that contribute tohuman health. In addition to the Yanai Headquarters
Plant, we have further increased our production
capacity by expanding the Takefu Plant to establish
a production system to meet customer needs.
Through the provision of high- performancechemical products and technologies, we will
improve customer satisfaction and contribute to therealization of a better and more sustainable society.

As one of the three elements of "clothing, food andhousing" that support our daily lives, the clothingbusiness plays the role of "clothing," and we have
kept the craftsmanship of manufacturing technology
and commitment to quality that we cultivated as anancestor business, and have developed ourbusiness mainly in the downstream sector. The
B.V.D. brand, which internally produces from originalyarns, has established a highly transparent “supply
chain” emphasizing respect for human rights andenvironment conservation in the production
process. We will take the lead in social andenvironmental-friendly activities and contribute to
the creation of social value. In addition, we havealso been focusing on the reuse and recycling ofclothing for a long time, and as the main sponsor ofthe "FUKU-NO-WA Project," we are supporting therealization of a sustainable society.

The Fujibo Group is engaged in the manufacturingof molded items and metal molds for medical andprecision fields as the fourth pillar. The molding
division, which has an established reputation for its
plastic molding technologies, is expanding its
business by focusing on the medical device field
which has drawn attention due to the recent
pandemic, in addition to its high-quality molding
technology. In the die & mold division, we will builda system to respond to a wide range of customer
needs by expanding the production bases of ourdomestic factories and overseas partner
manufacturers in order to respond to the progressof diversified and high-performance technologies
such as EV, autonomous driving, and lightweightingof automobiles, and contribute to the realization of asustainable automotive society.

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ESG DATATop Message

We will work toward sustainable growth
and the creation of new value through group-wide efforts
to strengthen our sustainability management.
Fujibo Holdings, Inc.

MITSUO NAKANO
Representative Director,
Chairman and President

To be a Company That “Zokyo” in the Post-corona Era

Contribute to the Development of a Sustainable Recycling Society

For more than 120 years since its foundation in 1896, the Fujibo Group has created values
and continued steady growth through the provision of new technologies and products thatmeet the demands of the times.
We have established a firm position as a company that supports a variety of othercompanies that play an active part on the global stage through our four businessdomains: Polishing Pad Business, Industrial Chemicals Business, Lifestyle Apparel Businessand Other Businesses.
Today, the world faces many serious social challenges, including climate change andthere are growing expectations of the society for companies to lead solving those issues.
Further, in response to the recent expansion of ESG investment, investors also highly value
companies which have a long-term strategy incorporating environmental and social
impacts.
In order to meet such expectations of investors and stakeholders, we announced our new
Medium-term Management Plan “Zokyo 21-25” in February 2021. We believe that we shouldmake use of our manufacturing technologies to strengthen our growth potentials in difficult
times and since 2006, we have kept presenting signals of growth “Henshin,” “Toppa,”“Maishin” and “Kasoku” in our Medium-term Management Plans and always promoted
sustainability management. We define our sustainability management as “pursuing growthand profitability while also contribute to the society with integrity.” in our current Mediumterm Management Plan.

We started as a cotton spinning company “Fuji Spinning Co., Ltd.” established at the foot of
Mt. Fuji. It is told that while many spinning factories used coal-burning steam engines forcotton spinning and paper manufacturing at the time when the company was established,
the founders of our company tried to vitalize the cotton-spinning industry powered byabundant water. Such environmentally-friendly management strategy can be said to be apioneer of sustainability management. Until today, we have developed our business by
paying careful attention to the conservation of the natural environment, including water, airand forests. In our business operations, we have extended the principle, “ensure safety andsecurity,” to the environment and the safety of local communities and are operating
business based on the premise, “not allow factories to pollute the environment by theiroperations.” Specifically, we will work on the improvement of the environment, such astechnological innovations to save energy and resources, environmental capital expenditureand cleaner wastewater. We will continue to contribute to the development of a sustainable
recycling- based society with the aim of becoming a company trusted by stakeholders whiletreasuring harmony with the local community, society and the global environment.

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ESG DATATHE FUJIBO GROUPSUSTAINABILITY

Basic Policy
The Fujibo Group implements “sustainability management” that incorporates sustainability
at the core of our business strategy.
The Group’s sustainability management is characterized by achieving sustainability
through a well-balanced implementation of “profit-making,” growth, profitability, social
contribution, and fair and transparent SDGs management founded on integrity.
A company must be financially profitable in order to pay dividends to its shareholders andachieve sustainable growth. In addition, focusing on being a public institution, it is importantto establish a strong relationship with stakeholders as a company that is more trusted by
the society under proper corporate governance. Our Group will continue to work toward
the sustainable enhancement of our corporate value.

The Fujibo Group’s Sustainability Management

Investors

ESG Filter

SDGs Management

Shareholder Returns“Earning,”
Growthand Profitability

Social Contribution
and Integrity

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SUSTAINABILITY

Sustainability Management System

FEATURESENVIRONMENTSOCIAL

GOVERNANCE

The Fujibo Group’s Sustainability Management System

At present, the world is facing many serious social challenges, including climate change,and society's expectations of companies as a leader in solving these issues are increasing.
Against this backdrop, we established the ESG Committee on April, 2021 to promotesustainability management across the entire Fujibo Group by addressing important issues
related to the SDGs, in line with the launch of our Medium-term Management Plan "Zokyo
21-25.“

BOARD OF DIRECTORSManagement, supervision anddetermination of important matters

The “ESG Committee” is headed by the President and consists of three subcommittees: theEnvironment Subcommittee, the Social Subcommittee and the Governance Subcommittee.
The Committee will make recommendations to ensure that the Group responds
appropriately to sustainability issues and that its sustainability efforts lead to medium- tolong-term improvements in corporate value.

MANAGEMENT COMMITTEEIn the new system, each subcommittee address various issues related to sustainability
promotion, and then reported to the ESG Committee, the Management Committee or the
Board of Directors depending on the level of importance. Therefore, the Board of Directors
makes final decisions on important policies and initiatives for overall management and also
controls and supervises the Management Committee and the ESG Committee, and otherrelevant bodies.

ESG COMMITTEE

Although the Polishing Pad Business, Industrial Chemicals Business, Lifestyle ApparelBusiness and Other Businesses have different requirements for sustainability, we willproactively tackle them from the perspective of risks and opportunities.

ESG DATA

Judgment and determinationof various measures

Formulation of various measures andbring down to each subcommittee

E SUBCOMMITTEES SUBCOMMITTEEG SUBCOMMITTEEFUJIBO HOLDINGS' DIVISIONS AND ITS SUBSIDIARIES

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ESG DATAESG Basic Policy
The Group is committed to the realization of its corporate philosophy,“we are committed to realizing a more prosperous and sustainable future for people,
society, and the global environment,” through its business activities.

1 Environmental Policy

2 Social Policy

3 Governance Policy

In order to realize a sustainable global environment, theGroup will respond to climate change, consider
biodiversity, and promote a recycling- based society
through the effective use of resources and energy.
In addition, the Group will establish an environmental
management system to achieves the above goals andwill further strengthen our environmental conservation
initiatives in compliance with environmental laws andregulations.

The Group will work to realize a better society while
respecting diversity regardless of gender, age or
nationality, providing opportunities to demonstratecapabilities, and promoting the improvement of theworking environment, as well as actively connectingwith various stakeholders. The Group will also actively
engage in community contribution activities and play arole in helping to solve social challenges as a memberof the local community.

In accordance with the Fujibo Group Charter of Conduct,
the Group will further enhance managementtransparency and maintain its management oversightfunction to prevent accidents and fraud, and aim forsustainable growth. In addition, the Group will
strengthen its business risk management system,
including those of its group companies, and further
promote BCP (Business Continuity Plan) against
disasters.

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Roadmap to the “Desirable Future Position” of Fujibo GroupThe Fujibo Group has formulated and implemented five Medium-term Management Plans (“Henshin 06-10,” “Toppa 11-13,” “Maishin 14-16,”“Kasoku 17-20” and “Zokyo 21-25”) since 2006 to resolve management challenges of the time. At present, we are aiming to strengthen
our ability to generate profit through fair and transparent management based on growth, profitability, social contribution, and integrity,
which are the characteristics of the Group's sustainability management, and once again aim to become "an outstanding No.1 player in aniche segment" and an irreplaceable sustainable company for people, society, and the environment.

“Outstanding
No.1 player
in a niche segment ”

Further accelerate growth and increase earning power
toward 2025 to realize our desirable future position.

Polishing
Pad
Business

2006 ― 2010
Medium-termManagement Plan

Industrial
Chemicals
Business

2014 ― 20162011 ― 2013

Medium-termManagement Plan

Medium-termManagement Plan

Medium-termManagement Plan

“Zokyo”

2017 ― 2020
Medium-termManagement Plan

“Kasoku”

Sustainability“Maishin”“Toppa”

The Fujibo Group’s Sustainable
Management
Social Contribution and Integrity“Henshin”

FY 2006

Enhance our“Ability togenerate profit”

2021 ― 2025

Other
Businesses
Lifestyle
ApparelBusiness

Desirable Future
Position

FY 2010

FY 2013

FY 2016

FY 2020

FY 2025

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SUSTAINABILITYFEATURES ouble Materiality
Din Enhancing Sustainability Management

Double Materiality

Impactsof climate change
on companies

Companies

ClimateImpacts of corporate
activities on climate arefinancial materiality.

Major stakeholders:investors, etc.

GOVERNANCE

ESG DATA

1. Sincere Efforts toward the Realization of a Sustainable Environment and Society	In order to maintain the sustainability of the global environment, we aim toestablish a stable and sustainable procurement and supply system by working
on the preservation of the natural environment and biodiversity and promoting
effective utilization of resources.

2. Adaptation to Climate Change	We will work to reduce the environmental loads of our business activities toachieve a decarbonized society and respond appropriately to the potential
impacts of climate change on companies that may arise in the future.

3. Co-creation of Value with Various Stakeholders
Environmental
and Social Materiality*2

Financial Materiality*1

SOCIAL

Five Materialities

In order to achieve a sustainable society, the Group has analyzed the magnitude of theeffects and the impact of our business activities on stakeholders, the economy, society andthe environment. At the Board of Directors meeting, we identified five materialities basedon the concept of “double materiality,” which integrates materiality from the investors’
perspective (financial materiality) and materiality from the stakeholders’ perspective(environmental and social materiality).
The concept of double materiality is defined in an update to the Non-Financial Reporting
Directive (NFRD) based on the Corporate Sustainability Reporting Directive (CSRD) issued
by the European Commission in April 2021, which provides a framework for future
disclosures.

Single Materiality

ENVIRONMENT

Impactsof corporate
activities
on climate

Companies	Through our business activities, we will emphasize dialogue with various
stakeholders and contribute to the sustainable growth and development of local
communities and other organizations.

4. C reation of an Environment that Accepts Diversity
and Maximizes Individual Capabilities
ClimateMajor stakeholders:consumers, clients, employees,
investors, etc.

The Concept of Double Materiality
Based on the Corporate Sustainability Reporting Directive (CSRD) issued by the European
Commission in April 2021, the Non-Financial Reporting Directive (NFRD) has been updated
to provide a framework for disclosures in the future.
*1	Financial Materiality / Events essential to understanding the financial developments and results and financial
conditions of a company*2	Environmental and Social Materiality / Impacts that corporate decision-making and business activities have on
the outside world	We will respect diversity regardless of gender, age, nationality, etc., and promote
the development of a work environment that will enable employees todemonstrate their abilities free from anxiety.

5. E nhancement of Corporate Governance and thorough Complianceand Risk Management

	We aim to achieve sustainable growth by implementing high transparency in ourmanagement practices and maintaining a risk management system to preventthe occurrence of accidents and fraud.

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Materiality: Initiatives for Important Themes
The Fujibo Group is promoting the following initiatives through our business activities in order to achieve a sustainable society together with all of our stakeholders:
Important Themes

Sincere Efforts toward the Realizationof a Sustainable Environment and Society

Adaptation to Climate Change

Co-creation of Value
with Various Stakeholders

Creation of an Environment that Accepts Diversity

Specific Initiatives
Conservation of the natural environment and biodiversity· Conservation of water resources· Management of chemical substances based on the PRTR Act· Reduction of soot and smoke· Reduction of marine plastic pollution and the promotionof eco-plastic products· Recycling of resources

Replacement of dye processing equipment with low liquor
ratio type
PRTR handling volume: 8,448 tons
Soot and smoke emissions: 51 tons
Participation in the FUKU-NO-WA Project and the promotionof reuse

Initiatives to reduce greenhouse gases· Reduction of greenhouse gas emissions· Conversion to renewable energy

Total of energy-related and non-energy related CO2 emissions
down by 1.9% on a year-on-year basis
Switching to “green nano”

Dialogues with stakeholders· Contribution to solving social contribution issues
through business activities· Timely and appropriate information disclosure and listening to thevoices of the capital market· Strengthening of partnerships and building of a better supply chain· Coexistence with local communities· Development and evaluation of human resources

Sales activities
Shareholders’ meetings and financial results briefing
sessions
Quality assurance support
Disaster recovery assistance (donation of clothes) andclean-up activities
Career development training

Diverse organizations and respect for human rights· Response to works style reforms· Support for female’s career development· Strengthening of education and training systems and educational
programs

Response to the revised Child Care and Family Care Leave
Act
Response to the harassment prevention act(the Act on Comprehensive Promotion of Labor Measures,
Stabilization of Employment of Employees, and Enrichmentof Their Working Lives)
Improvement of work environment for telecommuting
Expansion of language training
Provision of career development training for junior andmiddle-level employees

Highly transparent management· Promotion of response to the corporate governance code (CGC)· Strengthening of the risk management system

Review of matters to be resolved by the Board of Directors
Establishment of a “Nomination Advisory Committee” and a“Compensation Advisory Committee” (to replace the current“Nomination Committee” and “Compensation Committee”)
Determination of the policies to determine remuneration,etc. for directors

and Maximizes Individual Capabilities

Enhancement of Corporate Governanceand thorough Compliance and Risk Management

Achievements in 2020

Related to SDGsa

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Communications with Stakeholders
The Fujibo Group takes various opportunities to communicate with shareholders, investors and other stakeholders.
Through such communications, we will work together to create new corporate values.

Dialogues with Stakeholders

Shareholders
and investors

Customers

Clients

Employees

Local communities

Roles of The Fujibo Group

Communication tools

Status of communications

Timely information disclosure such as operating results,
management policies and medium-term management
plans
Building trust relationships
Shareholder returns

Financial results, reference materials for financial
results and video distributions
Annual Securities Reports
Corporate governance reports

Shareholders' meetings
Financial results briefing sessions
Financial results briefing videos

Providing safe, secure and quality products
Building trust relationships
Improving customer satisfaction

Product brochures
Quality Assurance Certificates
Contact

Direct response by the person in charge
Quality assurance support
Various exhibitions
AuditsCustomer service office
Joint research activities for prototypes

Fair and equitable transactions

Sustainability Procurement Guidelines

Purchase activities
Opinion exchanging meetings
Quality support

Providing comfortable and rewarding workplace
Enhancing systems and education
to maximize their capabilities

The Group’s internal newsletters
Intranet
Internal Reporting Contact Office(corporate ethics hotline)

Labor-management council
Various training
Dialogues with management
Interviews with junior and middle-level employees
Women’s conference

Ensuring safe and secure plant operations
Contributing to community development
Building and maintaining trust relationships

Brochures of each business site

Actively participating in local communities
Exchanging opinions and cooperatingwith local governments and neighboring companies
Information disclosure (website)

ESG DATA14

FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSFEATURE 1

CORPORATEOVERVIEWTOP MESSAGE

SUSTAINABILITYFEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA

Promote Resource Recycling FUKU-NO-WA Project— Fujibo Group Supports Para-Sports through Reuse of Clothes.

The Fujibo Group, which promotes SDGs management, is working groupwide on achieving SDGs as one of its social contributions. In this special
feature, we will introduce an example of our ongoing efforts to solve social
challenges of resource recycling through a clothes reuse activity“FUKU-NO-WA Project.”

What is FUKU-NO-WA Project?
It is an activity to reuse usable clothes donated fromcompanies and individuals, sell them to domestic or foreign
specialized dealers or at “FUKU-NO-WA Marché”, and donate
the sales proceeds to para-sport associations. This project
was hosted and managed by SANKEI SHIMBUN CO.,LTD. andselected as a “model business for sustainable use ofresources” by the Environmental Bureau of the Tokyo
Metropolitan Government in 2016 and 2017. The Fujibo Groupagrees to the purpose of the activity and joins it as an official
partner.

Five SGDs We are Working on through the FUKU-NO-WA Project
The FUKU-NO-WA Project supports the principles of United Nations Sustainable
Development Goals (SDGs) and aims to contribute to five goals out of 17 goals throughpromotion of reuse of clothes.

Quality Education
Unique classes and activities are given at from kindergartens to universities to learn
environmental problems and an inclusive society using FUKU-NO-WA as a case study.
FUKU-NO-WA Project will continue to provide various opportunities for learning

Decent Work and Economic Growth
FUKU-NO-WA Project sells home delivery kits “FUKU-NO-WA at home.” The productionof special kits for sales is outsourced to welfare service facilities in Tokyo, aiming torealize an inclusive society through work sharing.

Responsible Consumption and Production
Japan is one of the biggest consumers of clothes where about 1 million tons of clothes
are disposed every year and 70% of them are incinerated. FUKU-NO-WA Projectcontributes to building a sustainable cycle of production and consumption by
developing an environment for reuse and recycle of clothing and reusing as many
clothes as possible.

Climate Action
Since its launch in 2016, the project has reused and recycled approximately 500 tons ofclothes and reduced CO2 emissions which otherwise would have been produced if
such clothes had been incinerated. We have also taken steps to reduce CO2 emissions
from collection, transportation, and distribution of clothes.

Partnerships for the Goals
FUKU-NO-WA Project has built partnerships with companies, industry groups,
governments and schools and aims to contribute to development of para-sports andSDGs through promotion of reuse of clothes (efficient collection and more adoption ofreuse).

15

FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSFEATURE 1

CORPORATEOVERVIEWTOP MESSAGE

SUSTAINABILITYFEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA

Promote Resource Recycling Fuku-No-Wa Project
Fujibo Group Supports Para-Sports through Reuse of Clothes.

Reuse and Recycle to the Maximum Extent

Toward the Realization of an Inclusive Society

In the FUKU-NO-WA Project, we regularly check whether donated clothes are reusable.
Then we sell some of the donated clothes at “FUKU-NO-WA Marché” in Japan, and theothers are sent to more than 15 countries such as India, Pakistan, or Cambodia after sorted
in a factory in Malaysia, and resold at clothing markets. Unmarketable clothes are sent tofactories and recycled to rags or other products.

Clothes donated
By post or drop-off

Warehouse of a secondhand clothing company (Harajuku Chicago Inc.)
Donated clothes

Reception/Weighing

Accumulation/Compression and Packaging/Loading

Carry inTransported to Malaysia by ship

Malaysia/Secondhand clothing factory
Sorted by clothing type
Select and ship according to theclimate and culture of each region

Worldwide/Secondhand clothing markets

Transport

Sorted on site

Unmarketable clothes are recycled
to different forms.

15 countries around the world, including India

Factories, etc.

Markets around the world
Malaysia, Pakistan, Bangladesh

Rag, reclaimed wool, etc.

As an official partner of the FUKU-NO-WA Project, Fujibo Holdings regularly collects clothes
to be donated to the project at its Tokyo Headquarters. We also contribute to the initiativein a variety of ways, such as supplying clothing developed throughout the selling process
for charity sale events. Proceeds from the events are used to cover the cost of making
uniforms for Japan's para-sports national teams, as well as lecturer fees for para-sports
players who are sent to schools and other groups participating in FUKU-NO-WA activities.

16

FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
CORPORATEOVERVIEWTABLE OF CONTENTSTOP MESSAGE

SUSTAINABILITYFEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA“B.V.D. Suzu Bra (Cool Bra) Community” to Support the Active Lives of Female

FEATURE 2

The Fujibo Group is strengthening profitable businesses, aiming to further improve profitability while contributing to society. To become the "outstanding No.1 player in a niche segment" chosen
by customers, we focus on offering products with social impact. In this special feature, we introduce a case study of “Suzu Bra,” our long-selling product that helps to support the expansion of
female’s activities. In addition, through the launch of a new community website for the product, the company is using dialogue with customers in product development.

“Suzu Bra,” a Fujibo Apparel’s Long-Selling Productwhich has sold 2 Million Items in Total“Suzu Bra” has led a wireless bra market as a popular product that has sold 2 million items
in total since its launch in 2009 as a pioneer of wireless bra.
“Suzu Bra” is characterized by its “mesh WAY” stretch material based on a special knitting
technology, whereby it is resistant to wrinkle when folded and retains its shape after
repeated washing. It also dries rapidly, so you may wear it the next morning after washingand drying it at night.
Even in the middle of summer, it is difficult to become stuffy because it is designed to let
air through and fits body movements to support the breasts well, and it is light andcomfortable to wear. It is popular as a great product for all female who desire to be free of
traditional "tight-fitting underwear."This year, Fujibo Apparel made a major renewal of “Suzu Bra” limited to products soldonline to pursue more comfort. We believe that we can provide high quality products byreflecting the various requests of customers and repeating detailed revisions in the renewal
process.

Creation of “Suzu Bra Community”
Fujibo Apparel created a “Let's make our daily life comfortable, B.V.D. Suzu Bra (Cool Bra)
Community” in a Sankei Shimbun community “Kikkake” jointly with Sankei Shimbun and
QON in April 2021. It was created as a community for users to share and discuss concernsand questions about underwear. Because “Suzu Bra” is the popular product, it is importantto build a community that allows interactive communications between customers anddevelopers. Fujibo Apparel will sincerely listen to customers’ candid opinions through thecommunity and pursue the ideal bra that is even more comfortable.

Cumulative sales of “Suzu Bra” series（千枚）(Thousands)
2,000“Suzu Bra Community”
09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

http://www.beach.jp/community/BVD-SUZUBRA
Community members: Approx. 6,000 members (as of October 2021)

17

FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSFEATURE 3

CORPORATEOVERVIEWTOP MESSAGE

SUSTAINABILITYFEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA

Discussion with Ruth Marie Jarman, Outside Director— Promoting Career Development and Work-Life Balance for Female

Employees discussed their efforts to reform work styles, including improving the work environment and work-life balancewith Outside Director Ruth Marie Jarman.

Current Job and Work Style

time constraints increased for picking up my child, etc., selfmanagement such as work arrangements has become more

Jarman: As an outside director, I’d like to support creating anenvironment where female working in various workplaces of theimportant.

Ms. Ruth Marie
JarmanOutside director,
JarmanInternational KK
CEO

Ms. Kiraku

Ms. Omori

Ms. Takeuchi

Technology
Development
DivisionIntellectual
Property Office

Human
Resources
Division

Kiraku: We’ve clarified work procedures and share information
so that even if a child suddenly has a fever and needs to take

Jarman: Do you have any goals or motivations for your work?
Takeuchi: As Ruth said, we need to build a base where the nexttime off, I can ask my colleagues to cove for me.
Omori: So that’s what you need to do. My department has threefemale among many men. People say it’s difficult for female togeneration of female joining us can also play an active role.

Omori: I feel that our company has a well-developed system andwork, but I’ve never felt disadvantaged being a woman, which isa good thing.

been working and create an environment where we can enjoy
our work more.

Omori:I joined the company in 2018. I’ve been involved in filing

Takeuchi: That's true. Fujibo still has few female employees, but

Kiraku: As a female manager, I am trying to figure out how topatent and utility model applications for newly developed

I don't feel that I’m disadvantaged in my work or that I’m notraise and manage people. My goal is to establish my own

Polishing Pads as well as searching for related patents.

acknowledged because of my gender.

Takeuchi: I started working here in 2018 as a mid-career hire.
As a manager in the newly established HR Strategy Group in
the HR Division. I’m in charge of recruitment and humanresource development. In my private life, I am challenged bytrying to raise my three children.

Jarman: When I had my first child 27 years ago, babysitting

management style, including communication as a female leader,which is different from that of male leaders.

Fujibo Group can work comfortably and actively.

Kiraku: I joined the company in 2009 and have involved in thedevelopment of Polishing Pad for ultra-precision work forsemiconductors as a section chief. I gave birth in 2015, and after
taking a year of parental leave, I returned to my current
department.

Challenges for Female in Work-Life Balance
Takeuchi: Kiraku-san, you’ve returned to work after childbirthand child rearing. How do you balance work and family life?

Kiraku: After giving birth, I had to limit my working hours, while
my job became more demanding. I’m seriously thinking about
how to balance work and life, and am trying to "reform the way I
work" with the help of others. I feel that my experience can be acase study for Fujibo’s work style reform.

Takeuchi: One of my three children is still very young, and aswasn’t common in Japan, and I had the impression that in manyfamilies fathers worked and mothers raised their children.
Recently, I feel that Japanese men's attitudes have changed.
This is partly due to the fact that many companies have reformed
the way they work, making it easier for men to take parental
leave. Diversity is becoming more important in the workplace,and we need to think about how to improve the work
environment so that everyone can actively perform. In this sense,
it is important for the next generation of employees to have "rolemodels" like Ms. Kiraku and Ms. Takeuchi who are leading theway in improving the work-life balance.

a good working environment. I’d like to review the way we’ve

Jarman: The image of diversity held by many men working inJapanese companies is to treat men and female the same. I thinkthey have a misconception that equality means treating female
exactly like men. But, for example, in a workplace where there
are few female, it is more comfortable to work in a way thatconsiders the unique needs of female, such as slightly changing
how things are communicated.
Kiraku: I’d like to keep that kind of thinking in mind when I
become a leader. I don't have any female bosses yet. So, I waslooking forward to talking with a pioneer female leader today.

Takeuchi: I think we also need leaders who are supportive anddependable like a mother or older sister. Ruth, may we continue

Support Female's Empowerment
in the Workplace

to ask for your advice when we face any difficulty?

Jarman: Sure. That's what I'm here for. Absolutely!

18

FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSCORPORATEOVERVIEWTOP MESSAGE

SUSTAINABILITYFEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATAENVIRONMENT

Basic Concept
In order to reduce our environmental loads and to fulfill our corporate social responsibility,
the Fujibo Group has established an environmental policy and has set a management
strategy to resolve issues through our business. Our Group recognizes that global
environment issues, which have become urgent issues in the international community, areof the top priority, and strives to achieve our corporate philosophy “contribute to thecreation of a more prosperous and sustainable future for people, society and the global
environment.” Specifically, we are promoting efforts to reduce the environmental loads ateach of our business sites, including preservation of air and water environment,
preservation of biodiversity, resource saving or reduction of waste, and proper managementof chemical substances.

Environmental Policy
Basic Philosophy
	The Fujibo Group will work together to realize its corporate mission of “continue
to contribute to the creation of a more prosperous and sustainable future forpeople, society and the global environment.”

Basic Policy
1. Compliance with environmental laws and regulations
T he Group will comply with environmental laws and regulations, and	
agreements we have agreed upon.
2. Responding to climate change
The Group will give due consideration to the mitigation of climate change and	adaptation to the effects of climate change.
3 Consideration for biodiversity
The Group will give due consideration to the preservation of the environment	such as natural systems, and the maintenance and conservation of biodiversity.
4. Effective use of resources and energy
Recognizing the finite nature of resources and energy, the Group will strive for	waste control, reuse, recycle, and make effective use of waste.
5. Establishment of an environmental management system
The Group will strive to continuously enhance and improve its environmental	management system.
6. Dissemination and disclosure of environmental policies
We will widely disclose this environmental policy as well as inform all employees	of the Group.

19

FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSCORPORATEOVERVIEWTOP MESSAGE

SUSTAINABILITY

Priority Themes of Environmental Activities
The Fujibo Group incorporates the following items in its management strategy as priority
themes of environmental conservation and focuses on achieving each initiative.
1. Reduction of greenhouse gas emissions
	The Group emits only energy-related CO2 and non-energy related CO2 and does notemit gases such as methane or dinitrogen monoxide. We will continue to actively
promote the shift to renewable energy to further reduce greenhouse gas emissions.
2. Efforts to reduce the environmental loads of water resources	At each of our business sites, we implement environmentally-friendly drainage
treatment using the activated sludge process and in compliance with laws including
the Water Pollution Control Act and the Sewage Act. We also are actively working on
the efficient use of water resources.
3. Promotion of the reduction of industrial waste	We are promoting detoxification by incineration of industrial waste such as waste liquid(organic pollutant) generated in the production process. We process unstable chemical
substances internally to enhance safety, and reuse some of them as energy resources
as fuel for incineration equipment.
4. Reduction of the environmental loads of chemical substances	The Group properly manages the amount of PRTR substances (chemical substancesthat are subject to the PRTR) handled, released, and transferred. We are also working
on activities together with our customers to reduce our environmental loads.
5. Efforts for resource recycling and energy saving in operation	With the understanding of the finite nature of resources and energy, we are working
on energy-saving activities and also promoting the reduction, reuse and recycling ofwaste.

FEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA

Support for the TCFD Recommendations
As global environmental issues are becoming more serious, such as disasters and climatechange caused by global warming, the Group, as a member of the society shifting to low
carbon economy, recognizes that addressing climate change is an important management
challenge, and has expressed its support for the recommendations of TCFD (Task Force on
Climate-related Financial Disclosures), which will serve as guidelines for issues to be
tackled and disclosure of risk information. Going forward, while referring to the frameworkof the TCFD recommendations, we will sequentially disclose the "risks" and "opportunities"
posed by climate change to the Group, starting with those items deemed necessary
according to the Group's industry and business characteristics, and reflect them in ourmanagement strategies from a medium- to long-term perspective.
We intend to continuously contribute to the development of a sustainable society bypromoting efforts to reduce greenhouse gas emissions and thereby promoting lowcarbonization of business activities by taking advantage of the technological anddevelopmental capabilities that we have cultivated over the past century.
*TCFD: A task force established by the Financial Stability Board (FSB) which is an international organizationconsisting of central banks and financial authorities of major countries and regions in the world. The TCFD
published its final report in June 2017, recommending that companies disclose their “governance,”“strategy,” “risk management” and “indicators and goals” (11 items in total) related to risks andopportunities arising from climate change.

20

FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSCORPORATEOVERVIEWTOP MESSAGE

SUSTAINABILITYFEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA

Overview of the Environmental Loads of Business Activities
The Fujibo Group monitors the amounts of energy and chemical substances used in the business activities, as well as the emissions of CO2 and waste, to get an overall picture of theenvironmental activities each fiscal year to assess the achievement of our targets.

Flow of Materials in Our Production Activities for 2020

INPUT
Raw materials:

OUTPUT

32 thousand tons

Polishing Pad Businessand Industrial Chemicals Business

Energy input:
Water resources
input:Development

792 thousand GJ
1,871 thousand m

8,448 tons

51 thousand tons - CO

2

Energy-related CO2 emissions:44 thousand tons - CO2

Non-energy related CO2 emissions:

7 thousand tons - CO

Production

3

Polishing Pad Businessand Industrial Chemicals BusinessAmount of chemical substances handled(PRTR substances):

BUSINESS ACTIVITIES

Total greenhouse gas emissions:

Distribution

Amount of chemical substance emissions(PRTR substances)
Emissions:
Transfer:

Sales

2

Waste:
Soot and smoke:

31 tons
1,414 tons

45 thousand tons
51 tons

21

FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSCORPORATEOVERVIEWTOP MESSAGE

SUSTAINABILITY

Reduction of Greenhouse Gas Emissions
Greenhouse gases emitted by the Fujibo Group are only energy-related CO2 and nonenergy related CO2, with no emissions of methane, dinitrogen monoxide, or other gases.
Greenhouse gas emissions in FY2020 was 51 thousand tons of CO2 (down by 1.9% from theprevious fiscal year). (Energy-related CO2: 44 thousand tons, and non-energy related CO2: 7
thousand tons)
In addition, we are actively carrying out the reorganization of our business sites and“scrap-and-build” (expansion and removal) within the site, and we are working to reduceenergy consumption, including streamlining our production facilities and introducing
energy-saving equipment. As a result, while greenhouse gas emissions by fiscal year haveremained unchanged, the amount of greenhouse gas emissions per energy usage has
been declining since FY2015.
Production is expected to increase in the future. However, we will work on further
reducing greenhouse gas emissions by actively promoting a switch to renewable energy.
Energy-related CO2 emissions / Energy consumption
Energy-related CO 2
Non-energy related CO 2
Energy consumption (TJ = thousand GJ)(thousand（千 t） tons)（t/TJ）
85

100.0
81.8
80.0

78.2

78.6

80.4

79.2

75

60.0
40.0
20.0

80

5.9

5.3

5.1

6.3

7.0

47.9

45.7

46.1

46.2

44.4

70
65
60

0.0

2016

2017

2018

2019

2020

FEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA

Efforts to Reduce Greenhouse Gas Emissions
B.V.D. Packaging
From 2021, Fujibo Apparel has switched all packaging materials used for its flagshipproducts to “Green Nano” packaging. “Green Nano” is a new environmental material
developed by a venture company launched by Tokyo University of Science. By adding only
3% of this material to conventional plastic raw materials, we can reduce CO2 emissions by
as much as 60% during combustion. We estimate that this will lead to reduction of CO2
emissions by approximately 23 tons over the period between April 2021 and March 2022.

22

FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSCORPORATEOVERVIEWTOP MESSAGE

SUSTAINABILITY

 eduction of Environmental Loads
R
on Water Resources
The Fujibo Group’s business activities are dependent on abundant water resources, mainly
the Seto Inland Sea. Recognizing that we are supported by water and the blessings ofnature that produce it, we are working to reduce the environmental loads of our water
resources.
Nyugawa Plant and Oita Plant, both of which face the Seto Inland Sea, have wastewater
treatment facilities that use the activated sludge process. The activated sludge processuses microorganisms to decompose the wastewater an remove the sludge bysedimentation. The supernatant liquid is tested for water quality before being returned tothe sea for environmentally friendly wastewater treatment. We also strive to maintain andmanage appropriate water quality in compliance with the Act on Special Measuresconcerning the Conservation of the Environment of the Seto Inland Sea and other total
volume control systems.
Each business sites comply with the Water Pollution Prevention Law and the Sewage Act,
regularly inspects water quality and discharges water in public water areas.
In addition, in order to contribute to the conservation of water resources in the Seto
Inland Sea, we are also a member of “The Association for the Environmental Conservationof The Seto Inland Sea,” a public interest incorporated association.

Wastewater treatment facility in Oita Plant

Drainage treatment facility in Takefu Plant

FEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA

Efforts to Reduce Environmental Loads on Water Resources
A large amount of water is used in
the dye process in production of
textile products. Fujibo Textile
Wakayama Factory is graduallyreplacing the dyeing machineswith “low liquor ratio type” whichsignificantly reduces the amount of water and dyes used, thereby reducing environmentalloads.

FY 2020 Water Quality Data (Average Value)
Item

Maximum permissible
limit

Quality ofStandard
wastewatervalue(average value)(Dailyaverage)

FE

FE/FT

YC

FT

Nyugawa

Oita

Kozakai

Yanai

TakefuWakayamapH

5.8 − 8.6

7.7

7.48

7.5

8.1

7.3

7.4

Mineral oil(mg/L)

5mg/L

0.15

—

—

Not
detected

Less than
0.5

2.5

BOD (mg/L)

160mg/L(120mg/L)

—

—

2.0

—

0.87

64

COD (mg/L)

160mg/L(120mg/L)

3.1

7.01

0.8

17.7

1.18

95

Total nitrogen(mg / L)120mg/L(60mg/L)

3.2

29.86

3.9

3.2

1

5.1

Total
phosphorus

16mg/L(8mg/L)

0.85

4.21

0.01

0.03

Less than
0.05

1.4

All items
cleared
FE Nyugawa:
BOD test not required for ocean discharge.
YC Yanai: 	BOD test not required for ocean discharge. The mineral oil value was obtained through external
analysis.
FE Oita Plant wastewater treatment facilities will be in acclimatization operation (to cultivate activated sludge) in
FY 2020. Normal operations will resume starting in FY2021.
FY Wakayama: Discharged into the sewage system*FE: Fujibo Ehime, FT: Fujibo Textile, YC: Yanai Chemical Industry

23

FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
CORPORATEOVERVIEWTABLE OF CONTENTSTOP MESSAGE

SUSTAINABILITYFEATURES

Reduction and Recycling of Industrial Waste
The Fujibo Group is committed to reducing industrial waste and recycling of resources.
The Yanai Headquarters Plant detoxifies liquid waste generated in the production process
by decomposing liquid waste into water and CO2 through combustion treatment. We areworking to reduce our environmental loads through internal processing of approximately 70
tons of liquid waste per day using a submerged combustion system. Moreover, this enables
us to minimize the risk of secondary pollution, such as dioxins, through high-temperature
combustion treatment. We manage the soot and smoke generated during combustion bykeeping them below the standard level using a detoxification system. We also reuse someof the liquid waste as fuel for incinerators to reduce our environmental loads.
While the submerged combustion system burns waste liquid, it generates soot andsmoke (soot and dust, SOx, NOx). We regularly measure, record and store soot and smoke
data in compliance with the Air Pollution Control Act.

Changes in soot and dust emissions(tons/year)（トン／年）ENVIRONMENTSOCIAL

GOVERNANCE

 eduction of the Environmental Loads
Rof Chemical Substances
For the proper management of chemical substances generated at our manufacturing sites,
we manage the amount of chemical substances handled, released, and transferred at eachfacility in accordance with the PRTR Act (the Act on Confirmation of Release Amounts ofSpecific Chemical Substances in the Environment and Promotion of Improvements to theManagement Thereof). Regardless of the amount of emissions to the environment, we
conduct proper monitoring and implement
Changes in total handling volume
appropriate control measures to reduce theof PRTR substances
amount of use and emissions in accordance with(tons/year)（トン／年）
10,000environmental laws and regulations.
8,652
8,448
8,000 7,994
We are aware that, as a chemical intermediate
7,922
7,156
manufacture, there is a limitation in reducing
6,000
environmental loads through our individual efforts;
4,000
thus, we have started working together with our
2,000
customers to reduce environmental loads.
0

2016

10.0
8.0

7.7

6.0
4.0

6.3

5.6
3.5

3.4

2.0
0

Submerged combustion system at Yanai
headquarters plant (newly installed)

2016

Changes in SOx emissions

2018

2019

2020

(tons/year)（トン／年）

20.0

40.0

15.4

15.0

11.0
8.1
5.3

3.6

36.3

30.0

10.0
5.0

2017

Changes in NOx emissions(tons/year)（トン／年）

34.0

30.2

32.8

20.0
13.8

10,000

2017

2018

2019

2020

2016

2017

2018

2019

2020

2018

2019

2020

The Fujibo Group is aware of the finite nature of resources and energy and promotes
business activities in consideration of reducing environmental loads.
We sort waste into valuables, recyclables and industrial waste and store and dispose ofthem accordingly at each site. In addition, we focus on reducing waste through reuse ofwork in progress and the reduction of loss
Changes in industrial waste
generation by strict yield management in thedisposal volume
manufacturing process.
Internally processed
Outsourced
We are also working on reducing energy usage(tons/year)（トン／年）
50,000by promoting the switch to LED lighting and40,000introducing energy-saving equipment.
20,000

0

2016

2017

Resource and Energy Saving

30,00010.0

0

ESG DATA

18,87519,034

18,227

18,84720162017

18,337

20,253

26,256

24,72520192020

18,512

21,666

0

2018

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FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSCORPORATEOVERVIEWTOP MESSAGE

SUSTAINABILITY

Conservation of Biodiversity
In order to create a society in harmony with nature where ecosystems are properly
preserved and we can enjoy the gifts of nature for the future, the Fujibo Group is working
on the conservation of the environment of the Seto Inland Sea. We will contribute to theconservation of biodiversity through community participation in solving the plastic waste
problem, donation to Keidanren Nature Conservation Fund, and use of certified forest
conservation materials, etc.

Investment in an Aquarium “Umitamago”
In interactions with local communities, our business sites and factories, which aresurrounded by the rich ecosystem of the Seto Inland Sea, support biodiversity conservation
efforts. We are involved in a variety of measures to safeguard the Seto Inland Sea's uniquebiota, such as investing in Marine Palace Co., Ltd., which manages the "Umitamago"
aquarium in Oita.

FEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA esearch on the Ecosystem of Marine Animals
R“Tsukumi Dolphin Research Summit”
At Tsukumi Dolphin Island operated by an aquarium “Umitamago” and Tsukumi City,"Tsukumi Dolphin Research Symposium," is annually held, which is an industry-academiagovernment collaboration among university research institutions. The purpose of thisproject is to further develop the coexistence relationship between humans and dolphinsthrough long-term dolphin breeding and research, and to enrich the future of children who
are connected to the ocean. This is a new type of sustainable social contribution which
combines local revitalization and various activities about dolphins, including study andeducation, academic research, preservation of species and recreation. The “Tsukumi
Dolphin Research Summit” was held in July 2017 and lively discussions took place.
Participants from the Fisheries Agency, the Kyushu Bureau of Economy, Trade and Industry,
the Agriculture, Forestry and Fisheries Department of Oita Prefecture, Yamaguchi University,and Suma Aqualife Park KOBE, and other organizations deepened their awareness ofsustainability from various perspectives in the public, private, and academic sectors. Suchinteraction with dolphins and advanced ecological surveys and researches are expected tobring about local revitalization and to generate synergy to increase influences on theconservation of biodiversity.

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FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSCORPORATEOVERVIEWTOP MESSAGE

SUSTAINABILITY

Our Efforts to Stop Marine Plastic Pollution
The Fujibo Group participated in the Japan Clean Ocean Material Alliance in 2018. This is
an international business alliance project to solve a marine plastic pollution which is a
global issue.
Member companies are required to properly manage wastes mainly ensuring preventionof littering of plastics and to promote 3R technologies and development and disseminationof highly biodegradable alternative materials for plastic or paper products. In addition topromotion of eco-plastics, the Fujibo Group is working on biological conservation throughthe prevention of marine pollution together with various companies involved in the effective
use of overall plastic products.

FEATURESENVIRONMENTSOCIAL

Our Efforts to Preserve Forests
B.V.D. brand uses FSC-certified sub materials (tags). FSC is a national
system to identify and certify products that are made following “proper
forest management” for the purpose of sustainable use andpreservation of forests. B.V.D. brand has switched all of its tags to paper
made from FSC-certified wood since 2020.

ESG DATA

Relationship with Local Community
We regularly participate in events held around our factories and other activities such as
clean-up and have communication with local communities. We also regularly measure noiseand offensive odor to check that no adverse effect is made on the areas around ourfactories.

Donation to Keidanren Nature Conservation FundAs a member of the Japan Business Federation (Keidanren), we agree to the purpose of
Keidanren Nature Conservation Fund. Further, we provide support for conservation projects
as a company and donations to a charitable trust, the Nature Conservation Fund every year
from the perspective of social contributions.

GOVERNANCE

Yanai Headquarters Plant: Seawall clean-up

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FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSCORPORATEOVERVIEWTOP MESSAGE

SUSTAINABILITYFEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATASOCIAL

Basic Concept
The Fujibo Group respects diverse values regardless of gender, age, nationality, etc., andpromotes the provision of opportunities to demonstrate one's abilities and the improvementof the working environment based on the guiding principle of “constantly overcome
challenges to make breakthroughs” set out in the corporate vision.
In the workplace, we will respect individual abilities and promote the creation of anenvironment where people can work together to improve under fair opportunities and fairevaluation, and create a workplace that fosters healthy competitiveness and teamwork.
We are also working together with our various stakeholders to realize a better society.
As a global corporate citizen, we will actively participate in local revitalization initiatives
and local contribution activities and fulfill our roles in solving social challenges as a memberof the local communities.

Priority Themes of Social Activities
The Group has designated the following items as priority themes for our social contribution
activities, and will focus on achieving each of them.
1. Diversity & Inclusion
	We will build a corporate culture of mutual respect through inclusion of diversity.
2. Respect for human rights
	In accordance with the "Fujibo Group Human Rights Policy," we will respecthuman rights.
3. Human resource development
	Recognizing that employees are the corporate asset, we will work to develop them.
4. Safety and health of employees
	The Safety and Health Committee, a group-wide organization, will play a central
role in ensuring the health and safety of employees.
5. Supplier management
	We will ensure responsible procurement in accordance with our sustainability
procurement guidelines.
6. Quality assurance	To provide customers with high-quality products, we will appropriately manage
our internal quality management systems.
7. Contribution to local communities	As a member of the local community, we will actively get involved in local
community activities to contribute to its revitalization.

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FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSCORPORATEOVERVIEWTOP MESSAGE

SUSTAINABILITY

Diversity & Inclusion
The Fujibo Group believes that inclusion of diversity such as race, gender, age, gender
identity, disability, etc., will create a corporate culture of mutual respect that will propel us togrow together.

Approach to Ensuring Diversity
The Group’s labor policy is based on the motto, “Respect the individual, cultivate harmony,”and stipulate, “We provide fair opportunities and evaluations for each employee and create
an environment where they can improve through friendly competition. Respect forindividuality creates a workplace that improves competitiveness and team work.” As wemove forward with the upgrading of our business structure, we believe that respecting
diversity regardless of gender, age, nationality, etc., providing opportunities for employees todemonstrate their abilities, and promoting the improvement of the working environment willcontribute to sustainable growth and the enhancement of corporate value.

FEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA

Development of Work Environment for Work With Energy and Enthusiasm
The Group has addressed the following policies to create a work environment where
everyone can work with energy and enthusiasm:
1. Value teamwork at workplace;
2. Clarify goals and policies of each department to help each employee fully understandtheir role in the organization and fulfill their duties;
3. Avoid excessively long work hours and properly manage work hours;
4. Place an industrial physician and a person in charge of health insurance affairs at aworkplace and provide mental care and healthcare.

Initiatives for Aging Society
While our retirement age is 60, we have a policy to flexibly allow various work styles after
the age of 60.

Human Resource Development andInternal Environment Policies to Ensure Diversity

We are implementing the following measures to pursue employee satisfaction in an aging
society:

The Group provides opportunities for a diverse range of human resources to demonstrate
their abilities and play an active role, regardless of gender, age, nationality, disability, etc.
We are also promoting the development of an internal environment in which each employee
can work with peace of mind and vigor in a healthy state.

1. Allow applicants to extend their employment until the age of 65 and to adopt various
work styles after their retirement in accordance with our reemployment system;
2. Hold seminars for middle-aged and older employees;
3. Give healthcare and aftercare, mainly medical checkup for lifestyle diseases;
4. Encourage club activities for health improvement;
5. Give special consideration to employees with elderly family members in accordance with
our leave of absence program for nursery care.
6. Promote self-development activities for lifelong education.

1. Promotion of flexible work styles and improvement of work-life balance( 1 ) Support for balancing childcare and nursing care, regardless of gender(2) Flextime system(3) Work from home
(4) Post-retirement reemployment system(5) Employment of people with disabilities(6) Proactive promotion of leave usage
2. Paid leave utilization in fiscal 2020
Average annual paid leave utilization rate: 42.5% (9.6 days/year)

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FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSCORPORATEOVERVIEWTOP MESSAGE

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GOVERNANCE

ESG DATA

Promote Female’s Participation

Voluntary and Measurable Targets and Their Achievements

We ensure fair and equal opportunities for employment, promotion and compensation, etc.
and provide opportunities for education and training as well as development of the next
generation regardless of gender. We also have taken steps to ensure that female's skill
development and careers are not interrupted by enhancing the leave of absence programs
system to support both childcare and nursing care. The ESG Committee established on
April 1, 2021 to promote sustainability management by addressing key issues related to theSDGs, is currently studying initiatives to further promote the female’s career development.
As of March 31, 2021, the number of employees for the Group in Japan and overseas is
1,156, of which 424 (approximately 40%) are female. Of the 424 female employees, 12 aremanagers and the ratio of female in management positions is approximately 9%. If thenumber of female managers increases in various workplaces such as development,
manufacturing and sales, that will bring diverse perspectives and further enhance ourcorporate value.

We set a target of the ratios of female, non-Japanese and mid-career hires in management
positions recognizing the importance of ensuring diversity in management level, who playsa central role in management. We have set a target for the same ratios for FY2025 which isthe final fiscal year of the current Medium-term Management Plan, “Zokyo 21-25”. We willfurther enhance diversity in the future by increasing the number of core personnel.

Item

Ratio of female
managers
Ratio of female
in management
candidate position
Ratio of non-Japanese
in management
positions
Ratio of mid-careerhire inmanagement positions

Current

TargetTarget Period

8.6%(12 / 139)

10% or higher

End of March,
2026

5.9%
(6 / 102)

8% or higher

End of March,
2026

11.5%
(16 / 139)

13% or higher

End of March,2026

17% or higher

End of March,2026*female managers/all managers*female candidates for management positions/
all candidates for management positions*non-Japanese managers/all managers

13.7%(19 / 139)
*mid-car hires /all managers*Managers are classified as supervisors under the Labor Standards Law, and are the sum of department managers andsection managers.
*Ratio of non-Japanese managers is calculated based on the figures including domestic and overseas group companies*"Current" represents the figures as of the end of March 2021

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FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
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GOVERNANCE

ESG DATA

Respect for Human Rights
The Fujibo Group follows our corporate philosophy “we will always support leading-edge industries by providing new technologies and products demanded by the times, and are committed torealizing a more prosperous and sustainable future for the people, society and the global environment” and stipulate in the “Fujibo Group Charter of Conduct” that we will conduct managementthat respects the human rights of all people.
We have developed “The Fujibo Group Human Rights Policy” (hereinafter, the “Policy”) pursuant to United Nations’ “Guiding Principles on Business and Human Rights” and Japan’s “National
Action Plan on Business and Human Rights” developed in compliance therewith, and will address respect for human rights based on the Policy as a guide in order to fulfill our responsibility torespect human rights of all people involved in our business.

The Fujibo Group Human Rights Policy
1. Scope of application
	This Policy applies to all employees and officers of the Group. The Group also expects
all business partners, including its suppliers, to understand and support this Policy.
2. Basic concept
	The Group will respect human rights as stipulated in the “International Bill of Human
Rights” and the “Declaration on Fundamental Principles and Rights at Work” by theInternational Labour Organization (ILO). In conducting business activities, the Group is
taking initiatives to respect human rights pursuant to the “United Nations Guiding
Principles on Business and Human Rights” and Japan’s “National Action Plan on
Business and Human Rights” formulated in accordance with the UN’s Guiding
Principles.
3. Compliance with laws and regulations
	The Group understands and adheres to the laws, regulations and rules related to its
business in all countries and regions where it conducts business activities. In theunlikely event that the laws and regulations in the relevant country or region differ
from or conflict with international norms for human rights, the Group will seek ways tomaximize respect for internationally recognized human rights principles within thescope of the laws, regulations and rules of the country or region.

4. Corporate Human rights due diligence	Based on the concept of human rights due diligence in accordance with the “Guiding
Principles on Business and Human Rights,” the Group will strive to understand,prevent and mitigate human rights violations or effects that may result in indirect
racial abuse.
5. Establishment of remedy and grievance mechanism	If it becomes evident that the Group’s business activities infringe on human rights or
cause an impact that may indirectly result in human rights violations, the Group will
endeavor to take the necessary steps to address the situation.
6. Education and training	The Group will strive to provide appropriate education and training in order toeffectively implement this Policy throughout its business activities.

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FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
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SUSTAINABILITY

Human Resource Development
The Fujibo Group aims for becoming the “outstanding No. 1 player in a niche segment” as
its long-term vision. For this vision, we believe that employees are our corporate assets andhave established an organization to promote human resource development since 2010. We
provide employees with well-developed education and training depending on their career
to support their growth that would help us develop skilled human resources from among
employees.
1. Develop problem-solving human resourcesWe provide well-developed career training to actively support employees to develop
themselves into problem-solvers. After joining the company, the Human Resources
Department and the department unit together to provide OJT, and then provide theemployee with opportunities to solve problems and understand customer needs on thejob site, as well as various training by the Human Resources Department, to prepare forpromotion to managerial positions. We also fairly evaluate the knowledge, skills andattitudes of mid-career hires and actively help them get promoted to management.
2. Develop globally competent resourcesIn order to develop globally competent human resources, we provide language training
covering mainly English, Chinese (including Taiwanese) and Thai, and also offer language
study programs in various countries to achieve higher personal development goals.
3. Develop next-generation leadersIn order to realize a sustainable corporate management, we develop next-generation
leaders to be able to have balanced capabilities and insights by giving them experiencein leading a small group at first and gradually bigger groups or a subsidiary.

FEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA

Investment in Human Capital
We consider human capital as the core of corporate value. Investment in human resources
is fundamental to the sustainable growth of the company, and we actively provide educationand training opportunities to draw out and enhance the knowledge, skills and abilities ofindividuals. We are committed to enhancing the capabilities of each and every one of ouremployees to realize a sustainable way of working.

Improvement of Education and Training Programs
The Group supports employees’ growth through various training programs. Training
programs include education and training and next-generation development, as well as
mental health education such as workplace safety education, environmental education andself-development. In addition to human resource development and work-related training,
we are also increasing opportunities for education while taking into account the work
environment and employees’ health.

■List of Training Programs
Special trainings (managers, junior staff and mid-level employees)
Distance learning courses for self-development
Training on improvement of sales skills and enhancement of numerical sense
Language lessons (TOEIC ,Test of Chinese Proficiency, HSK)
Overseas language study programs (English)
Learning sessions at each workplace
Business career certification

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FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
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Safety and Health of Employees
The Fujibo Group is committed to ensuring the safety and health of employees, with theGroup-wide organization Environment and Safety Promotion Department playing a central
role. We launched a safety measures project in 2010 and established safety and healthmanagement regulations in April 2011. We are promoting zero workplace accident activities
by developing and improving our Group-wide safety and health management system andconducting regular safety inspections and guidance at all business sites.

Initiatives for Safety and Health Education
We provide safety education at manufacturing sites to ensure the safety of employees. We
are working to raise safety awareness by covering various cases, including the inspection ofsafety equipment and devices, case studies and education based on accident cases of othercompanies. To prevent accidents from occurring, we are working to make it easier to reporteven minor near-misses and are promoting workplace injury prevention.

FEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA

Assessment of Safety Risks
The Fujibo Group is implementing initiatives to thoroughly identify and evaluate risks related
to employee safety, including accidents and injuries. When making capital expenditures or
upgrading facilities, we conduct multifaceted risk assessments and, if necessary, chemical
substance risk assessments to ensure that all possible engineering and administrative
measures are taken. The Environment and Safety Promotion Department inspects each
workplace, evaluates risk countermeasures and instructs necessary measures in accordancewith its annual plan. We will continue to strive to prevent serious accidents and further
enhance the security and safety of our employees and the local communities.
■Safety Promotion System

Fujibo Holdings
Board of Directors

ESG Committee

Management Committee

Risk Management Committee

Environment and Safety Promotion Department
Safety measures project

Human Resources
Department

Group companies
Industrial physicians

Risk assessment
Engineering safety measures
Managerial safety measures

General Safety and Health Manager
Compliance with Industrial
Safety and Health Act
Zero workplace
accidents
Workplace injury prevention

Safety inspection

Safety and Health Committee
Safety education
Near miss incidents

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FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
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SUSTAINABILITYFEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA

Sustainability Procurement Guidelines

Supply Chain Management
The Fujibo Group has established an appropriate transaction policy and is conducting
responsible procurement, in order to support the development of a sustainable society
throughout the supply chain. The policies cover legal compliance, fair transactions,environmental considerations and respect for human rights (prohibition of child labor andforced labor) among others.

1. Organizational governance( 1 ) Regulatory compliance and respect for international norms
	The Group will comply not only with laws and regulations applicable to its home country and thecountries and regions where it operates, but also respect the International Code of Conduct.
(2) Respect for sustainability
	The Group will respect the spirit of sustainability, establish policies to improve sustainability,and build an organizational structure to achieve this goal.

Securing Sustainable Supply Chain

2. Fair trade and ethics( 1 ) Prohibition of bribery
	The Group will neither give, offer or promise a bribe to any person, whether directly or
indirectly, nor will it accept bribes.
(2) Prevention of improper provision and receipt of benefits	The Group will not provide, receive or tolerate improper benefits in relation to stakeholders.
(3) Prohibition of abuse of superior bargaining position
	The Group will not take advantage of its superior position as a purchaser or consignor to
impose any disadvantage to suppliers and contractors.
(4) Prohibition of competition restricting practices
	The Group will not engage in any acts, such as cartels and bid-rigging, that impede fair,transparent and free competition.
(5) Respect for intellectual property rights
	The Group will not infringe on the intellectual property rights of others, such as patent rights,
utility model rights, design rights, trademark rights, copyrights and trade secrets.
(6) Proper export control
	The Group will establish a clear control system for the export of goods and technologies
regulated by laws and regulations, and carry out proper export procedures.
(7) Information disclosure	The Group will appropriately provide and disclose information on business activities, financial
conditions, performance and risk information to stakeholders, regardless of whether or notdisclosure is required by laws and regulations.
(8) Prevention and early detection of misconduct	The Group will prevent misconduct through personnel training and education and set up aninternal reporting contact office to respond to early detection of misconduct.
(9) Prohibition of insider trading	The Group will not buy or sell shares of a client company based on non-public, important
information regarding its business.
(10) Confidentiality
	The Group will take protective measures for information security in order not to cause damage
to its own company and others, and properly manage and protect personal information ofcustomers, third parties and employees, as well as confidential information received from
customers and third parties.

Plan

Formulation anddisclosure ofsustainability
procurement
guidelines

ActionFollow-up of
suppliers

Sustainability
Procurement
Guidelines

Do

Request forcooperation of
suppliers

Check

Confirmation ofcooperation

Formulation of Sustainability Procurement Guidelines
The Fujibo Group is also strengthening supply chain management to promote responsible
corporate behavior in the supply chain based on the concept of sustainable management.
We have established the Group’s “Sustainability Procurement Guidelines” and will share ourvalues with our business partners and implement the guidelines.
We have prepared this guideline in reference to the “CSR Supply Chain Guidebook”
published by the Japan Electronics and Information Technology Industries Association(JEITA).

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GOVERNANCE

ESG DATA

3. Human rights and labor( 1 ) Prohibition of forced labor	The Group will hire all employees of their own free will and will not subject them to forced orbonded labor. The Group will also ensure that employees can leave the company at their own
discretion.
(2) Prohibition of inhumane treatment
	The Group will respect the human rights of its employees and prohibit harsh and inhumane
treatment of any kind, including abuse, sexual harassment, power harassment, and corporalpunishment.
(3) Prohibition of child labor	The Group will not employ children under the minimum working age in countries or regions
where it conducts business activities, nor will it allow young workers to engage in employmentthat would impair their development.
(4) Prohibition of discrimination
	The Group will eliminate discrimination in recruitment and employment and strive to ensure
equal opportunities and fair treatment.
(5) Appropriate wages
	The Group will comply with statutory minimum wages in countries or regions in which it
conducts business activities and will not make unreasonable wage reductions.
(6) Appropriate working hours	The Group will comply with the statutory limits of the countries and regions in which it conducts
business activities, and appropriately manage the working hours, holidays and leaves of
employees. The Group will also strive to restrict long working hours, improve its system andcreate a workplace culture that encourages balance between work and personal life.
(7) Employees’ rights to organize	The Group will respect employees’ rights to organize as a means of realizing labormanagement discussions, such as working environment and wage levels.
(8) Approach to conflict minerals
	The Group will not procure raw materials, parts or products that use conflict minerals.
(9) Industrial safety and health	The Group will evaluate risks to workplace safety and ensure safety through appropriate
design, technology and management measures. The Group will identify situations in
the workplace with regard to risks from exposure to chemical substances, organisms,
noise, offensive odors and other similar conditions that are harmful to human body, andtake appropriate measures. In addition, the Group will also conduct appropriate healthmanagement for all employees.

(2) Minimize environmental loads (wastewater, sludge, exhaust gas, etc.)
	The Group will comply with laws and regulations related to air, water quality and chemical
substances in countries or regions where it conducts business activities, and make further
improvements through voluntary standards as necessary.
(3) Environmental permits and administrative approvals
	The Group will obtain the necessary permits and approvals from local authorities inaccordance with the laws and regulations of the countries or regions where it conducts
business activities, and submit the requested management reports to local authorities.
(4) Effective utilization of energy and resources	The Group will set voluntary targets for resource and energy saving, and continue to makeeffective use of resources and energy.
(5) Conservation of water resources	The Group will strive to conserve water resources through efficient use of water and reuse byrecycling.
(6) Reduction of waste
	The Group will set voluntary targets for reducing final waste and strive for continuous
reduction.
(7) Reduction of greenhouse gas emissions
	The Group will set voluntary targets for reducing greenhouse gas emissions and work towards
continuous reduction.
(8) Biodiversity and environmental conservation initiatives
	The Group will assess the impact of its business activities on biodiversity, reduce negative
impacts, and strive to conserve biodiversity and the environment.

4. Environmental conservation( 1 ) Environmental management system	The Group will build and operate an environmental management system to promote
environmental practices appropriate for its business.

6. Social contribution( 1 ) Contribution to society and local communities
	The Group will actively engage in activities that contribute to the development of international
and local communities in order to realize a sustainable society.

5. Quality and product safety( 1 ) Ensuring product safety
	The Group will strive to ensure sufficient product safety so that products meet the safety
requirements stipulated by the laws and regulations of each country. The Group will also
engage in preventive activities to prevent the occurrence of quality problems and respondpromptly when problems occur.
(2) Quality management system	The Group will establish and operate a quality management system to promote quality
assurance initiatives.
(3) Accurate provision of product and service information
	The Group will provide customers and consumers with accurate information about products
and services.

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FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
CORPORATEOVERVIEWTABLE OF CONTENTSTOP MESSAGE

SUSTAINABILITY

Raw Cotton Traceability

FEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA

Quality Assurance

The Fujibo Group ensures traceability of all raw cotton used for its textile products. Becauseof its labor-intensive nature, global cotton cultivation tends to involve social problems suchas health hazards for those involved in production, child labor, and forced labor.
In order to solve these problems, the Group is addressing the traceability issues faced by
the global cotton industry by strictly enforcing proof of origin.

B.V.D. Brand Produced with Strict Traceability
B.V.D. is produced in factories that have acquired the WRAP certification (plant audit
certification by a third-party organization) to ensure traceability.

In order to ensure a stable supply of high-quality products to our customers, theindependent quality control departments of each company and business units of the FujiboGroup conduct quality control and quality assurance operations according to thecharacteristics of each product and respond to increasingly sophisticated needs throughthe promotion of quality management systems and various improvement activities.
The Internal Audit Office continuously monitors and measures the status of thedevelopment, from an independent perspective in order to prevent quality-related incidents,
responds to customer requests, identifies issues and quickly corrects them.
■Quality Assurance System

B.V.D. is a brand that connects our company and our customers with trust, and is theresult of such a strictly controlled production process.

ESG Committee

Traceable system for B.V.D. brandFujibo Holdings
Board of Directors

Risk Management Committee

Management Committee
Internal Audit Office

Cotton(with proof of origin)

B.V.D. certified
factories<In-house factory/
outsourcing factory><In-house factory/
outsourcing factory>

WRAP (Worldwide Responsible Accredited Production)

ISO Audit
Customers

Education System
TPM Activities
Skill Certification

Customer Satisfaction
Quality Management
SystemInternal Quality Audit

Quality Inspection
Process Inspection

Quality Assurance Division

Spinning
mills

Quality Policy and Quality Targets

Business Units

Cotton farmers

Group companies

B.V.D.

Certification (In-house factory)● Nine business sites have ISO9001 (Quality) certification.
● Three business sites have ISO14001 (Environment) certification.
● Two business sites have WRAP certification (a labor and environmental certification program).

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Contributing to Local Communities
As a member of the local community, the Fujibo Group actively participates in community
activities to contribute to the revitalization of local communities. We are also working tointeract and communicate with local residents by providing opportunities in order for themto learn more about our company.

Active Participation in Local Communities
The Fujibo Group contributes to the society in a wide range of areas through its businessactivities. The Group deepens its understanding of local communities at each of its businesssites and participates in activities aimed at revitalizing local communities.
In addition, we recognize that social contribution activities also lead to the creation ofsocial and environmental values and contribute to the mutual development of sustainable
society and business, and we are actively involved in areas where our business bases arelocated. As a good corporate citizen, we will build a relationship of trust with local
communities by actively participating in volunteer activities that respond to the needs andchallenges of local communities.

Yanai City Budokan / Contribution to Naming Rights
Yanai Chemical Industry Co., Ltd. is committed to supporting youth education in the region.
In 2016, in response to a request from Yanai City in Yamaguchi Prefecture, we acquired thenaming rights to a sporting facility in the city and named it “FUJIBO Yanai Kagaku Budokan.”
The facility has become popular among the local community and has been widely used as avenue for the promotion of sports in the city.

FEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA

List of Local Community Activities● Nyugawa Plant
Hold meetings with managers of companies located in the Nyugawa district to exchange
opinions (once a month).
Attend general meetings of the Ooshinden neighborhood association (once a year).
Signed “Agreement on Supporting Disaster-Resilient Community Development” with
Ooshinden voluntary disaster prevention associations.
Invite officials of the neighborhood associations to participate in disaster prevention drills at
the Nyugawa Plant (once a year).
Attend regular meetings of the Chamber of Commerce and the Labor Standards
Association.
● Kozakai Plant
Carry out clean-up activities in the area surrounding the factory site on “Toyokawa City
Clean-up Day.”● Oyama Plant
Participate in the Mt. Fuji community clean-up drive (organized by the Oyama Town
Corporate Advisory Council) (once a year).
● Yanai Headquarters Plant
Sponsor the “Yanai Goldfish Lantern Festival” (once a year)

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FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
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GOVERNANCE

ESG DATA

Disaster Relief / Clothing Donation

Sponsorship to a Professional Golfer

The Fujibo Group donates underwears, which are daily necessities, to assist people in areas
affected by large-scale disasters such as earthquakes, typhoons and fires. In FY2020, we
have donated underwears (a total of 11,673 pieces for men, female and children) to thoseaffected by the torrential rains in July 2020. We have also donated underwears (a total of
113,810 pieces for men and female) to healthcare workers working under harsh medical
environments due to prolonged COVID-19 pandemic. Going forward, we will continue toprovide various support for COVID-19 countermeasures and actively address ESG-related
issues for the sustainable development of society and companies.

We have signed a sponsorship agreement with female professional golfer Kana Mikashima
since October 1, 2021. She has been seeded based on her prize ranking for three years in a
row after passing the JLPGA Pro Test in 2018. She is expected to be one of the top players
representing Japan, and on November 28, 2021, after signing a sponsorship contract withour company, she won the JLPGA Tour Championship Ricoh Cup for the first time on the tour,
achieving the feat of winning an official tour event (domestic major). We will provide her with
Fujibo Apparel Corporation’s product “B.V.D. Power Athlete,” which is an ideal underwear forathletes aiming to achieve their peak performance. We will support Mikashima, who has
achieved her goal of winning a major championship in Japan and continues to pursue her
dream of winning the tour championship and overseas majors while mirroring our corporatechallenging stance of creating new businesses on a global scale with the aim to reach newheights.

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FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSCORPORATEOVERVIEWTOP MESSAGE

SUSTAINABILITYFEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA

GOVERNANCE

Basic Concept
Our primary goal is to maximize our shareholder value by pursuing management efficiency
and ensuring soundness. In addition, we focus on ensuring management transparency, strive
to disclose information to the maximum extent possible, and absorb various opinions fromboth inside and outside the company, thereby improving corporate governance and raising
corporate ethics.
Based on our basic recognition as a member of society, we will comply with laws and regulations, observe social norms and corporate ethics, and operate in accordance with internal
rules in order to earn the trust of our customers, employees, business partners, shareholders,investors, and other stakeholders, as well as society, by increasing our corporate value whileaiming for sustainable development through sound management. To implement this, we also
observe the Fujibo Group Charter of Conduct established as corporate behavior charter.
We have established the Compliance Committee to ensure compliance with laws and regulations, fairness and ethics in corporate activities. In addition, to enhance functioning of theCommittee, we have established a corporate ethics hotline, including an external legal consultation service provided by lawyers, as a body to handle information on potential violations,
thereby building a system enabling management to decide and handle material businessinformation. We also have the Internal Audit Office to audit the execution of various management activities from a fair and independent standpoint and to contribute to the effective
achievement of management goals.
Furthermore, we have taken measures to improve corporate governance, such as having
corporate auditors (including outside auditors) properly audit management, including participation in the Board of Directors, where they are responsible for making decisions on ouroperation and supervising the execution of directors’ duties, separating supervision fromexecution through introduction of the executive officer system, and reinforcing the management supervising function by outside directors.

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FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSCORPORATEOVERVIEWTOP MESSAGE

SUSTAINABILITYFEATURES

Corporate Governance System
The Fujibo Holdings is a company with an Audit & Supervisory Board, and is taking initiatives
to speed up the decision-making process of the Board of Directors, ensure greater transparency, and strengthen the oversight functions of the Audit & Supervisory Board.
Since June 2013, the Company has been inviting outside directors to oversee management from a more objective standpoint based on their abundant experience and extensive
knowledge as executives. This enables the Company to build a system to strengthen thefunctions and roles of the Board of Directors, which include decision-making on businessexecution and supervision of the directors’ execution of duties.
The Company’s system allows corporate auditors to attend the Board of Directors and theManagement Committee to understand the process of important decision-making and thestatus of business execution, and to conduct management audits appropriately.
List of Corporate Governance Systems
Shareholders’ Meeting
Appointment/Dismissal
Nomination
Committee

Reports, etc.

Decision on execution of business/
Supervision of execution of duties
Audit

Board of Directors(3 outside directors and 5 internal directors)
Compensation
Committee

Reports, etc.

ReportAppointment/Supervision/
Dismissal

ENVIRONMENTInternal Audit

Corporate Auditors

Audit

Risk Management Committee
ESG Committee

Fujibo holdings’ divisions and its subsidiaries

ESG DATATo ensure effective functioning of our corporate governance, the Company has establisheda system which enables the Board of Directors to execute its management oversight function with a high degree of independence, with independent outside directors accounting for
more than one-third of the total number of directors.
The Company’s Audit & Supervisory Board consists of corporate auditors, including outside auditors, in order to further enhance the fairness, soundness, and transparency of management. To strengthen management monitoring and supervisory functions, the Company
has appointed corporate auditors with expertise and knowledge of finance and accounting,and the corporate auditors collaborate with the internal audit department and accounting
auditors.
In addition, the Company has establisheda Compliance Committee that deliberates
on important compliance-matters and monitors the status of implementation, and the
Risk Management Committee that promotes
Appointment/Dismissal
Appointment/
consistent risk management initiatives for
Dismissal
the Company. Furthermore, in April 2021,
Audit & Supervisory Board
we have established the ESG Committee to(3 outside auditors and 1 internal auditor)
promote sustainability management pracAccounting Auditor
tices across the entire group by responding
to important issues related to SDGs.

Compliance Committee
Internal Audit Office

GOVERNANCE

B oard of Directors, Audit & Supervisory Board,
Committees, etc.

Execution of business
Management Committee

SOCIAL

Accounting Audit

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FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSCORPORATEOVERVIEWTOP MESSAGE

SUSTAINABILITY

Status of Independent Officers
Out of the eight directors of the Company, three outside directors -- Mr. Nobuya Hideshima,
Ms. Ruth Marie Jarman and Mr. Hisashi Kobayashi -- are independent officers who satisfy
the eligibility requirements set by the Tokyo Stock Exchange. Selected outside directors
are individuals who can contribute appropriately to corporate governance from a more objective standpoint and are unlikely to have conflicts of interest with general shareholders.
Among our four corporate auditors, three outside auditors -- Mr. Hideaki Onishi (full-time),
Mr. Masaru Namatame and Mr. Kotaro Otsuka -- are also independent officers who makeuse of their high level of expertise and extensive experience in monitoring management,
and providing appropriate advice at the Board of Directors as necessary.

Evaluation of Effectiveness of Board of Directors
To further strengthen the effectiveness of the Board of Directors, we conduct a “director
self-evaluation” survey for all officers, including outside directors and corporate auditors.
We will continuously carry out self-evaluation surveys for directors and auditors every year,
and discuss the results of the analysis at the Board of Directors to further improve the effectiveness of the Board of Directors to contribute to the enhancement of corporate value.

FEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA

Outside Director’s Message
Outside Director: Ruth Marie Jarman
My name is Ruth Marie Jarman and I was appointed as
an outside director in 2019. I was born in the U.S. in
North Carolina but I grew up in Hawaii. After graduating with a degree in International Relations from Tufts
University, I moved to Japan and have been here forthe past 33 years. I am the CEO of Jarman International KK which I started in 2012. My company focuses on
supporting globalization, international marketing andnon-Japanese customer support for Japanese companies and regions. Using my experience in Japan fromthe perspective of a non-Japanese business person, I have published books about
what Japanese people and corporations can be proud of and the great contribution I
believe could be made by Japanese female for the future of Japan.
Fujibo Holdings is a unique company that aspires to be the “global No. 1 niche player”. This is rare among many Japanese companies that pursue scale. The Medium-termManagement Plan “Zokyo21-25,” which started this fiscal year, conveys a powerfulmanagement message of achieving sustainable growth by placing sustainability at
the core of the management. I expect the company to take necessary initiatives forsolving environmental and social issues, and at the same time, constantly secure highearnings. As I mentioned before, Japanese female are highly capable and have highpotential. Recently, there have been calls for the promotion of female's activities in Japan. I believe that providing Japanese female with opportunities to demonstrate theirabilities will not only contribute to the revitalization of Japanese companies but also
lead to further promotion of globalization.
I would like to be supportive as an outside director in any way I can to realize such
dreams.

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FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSCORPORATEOVERVIEWTOP MESSAGE

SUSTAINABILITYFEATURES

Compensation for Officers
The compensation for the Company’s directors (excluding outside directors) consists of basic remuneration (monetary remuneration) as fixed remuneration and restricted stock compensation (non-monetary compensation). The amount of the monetary remuneration is determined by the Compensation Committee under delegation from the Board of Directors.
Outside directors, who are responsible for supervising functions, shall be paid only basic
remuneration (monetary remuneration) as fixed remuneration in light of their duties.
Non-monetary compensation consists of shares of the Company’s common stock that are
subject to a certain period of restriction on transfer and events of free acquisition by thecompany and other terms. We have adopted the restricted stock compensation with a viewto give incentives to strive for the continuous enhancement of our corporate value and topromote further sharing of values between directors (excluding outside directors) and shareholders.
Compensation for directors and corporate auditors, etc.
Classification of ofﬁcers

Total amount ofcompensation, etc.
(in million yen)

Total amount of compensation, etc.
by classification (in million yen)Basicremuneration

Number of
eligible officers

PerformanceNon-monetary
based
compensation, etc.
remuneration, etc.

Directors(outside directors)

200(20)187(20)

—

12(—)

10(4)

Corporate auditors(outside corporate auditors)

48(28)

48(28)——

4(3)ENVIRONMENTSOCIAL

GOVERNANCE

ESG DATAP olicy and Procedures for Nominating Candidates
for Directors
The Nomination Committee and the Compensation Committee, with the majority of members
consisting of independent outside directors have been established to consider importantmatters such decisions on the nomination and remuneration of management and directors.
The committees will review the appointment and dismissal of directors, etc, and decisions on
remuneration in an effort to improve the independence, objectivity and accountability of theBoard of Directors’ functions.
In selecting candidates for directors, we consider candidates with the character and insight
suitable for directors and will contribute to the sustainable growth of the Group. For internal
director roles, we select candidates who are considered to have the expertise, experience,and capabilities in their areas of responsibility.
As for outside director roles, we select nominees from a wide range of candidates who
have abundant experience as corporate managers and a high level of insight into world
affairs, social and economic trends, etc., so that they can be expected to supervise management from a broader perspective and from an independent standpoint, further enhance thetransparency and fairness of management, and provide appropriate advice on managementfrom a medium- to long-term perspective.

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FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
CORPORATEOVERVIEWTABLE OF CONTENTSTOP MESSAGE

SUSTAINABILITYFEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA

Corporate Officer Skill Matrix
In order to realize fair and highly transparent management, the Board of Directors meets once a month in principle with corporate auditors in attendance, and the Management Committee
meets twice a month in principle with full-time corporate auditors in attendance, in an effort to grasp information and make decisions quickly and accurately.
As of November 30, 2021
Execution ofbusiness

Independent
officers

Attendance to
BOD meeting

Name

Current position and responsibilities
in the company

Corporate
management
and strategy

Production
technology/
Safety and quality

Sales andmarketing●●

Legal affairs andrisk management

Internationality

Finance andaccounting

●

●

●

Directors
Corporate Auditors●

9/9

Mitsuo Nakano

Representative director and chairman of the Compensation Committee and the Nomination Committee

●

●

9/9

Kazushi Yoshida

Representative director and member of the Compensation Committee and the Nomination Committee

●

●

9/9

Yasuo Toyooka

Representative director

●

●

9/9

Masahide Inoue

●

●

●

6/6

Yoshimi Mochizuki

●

●

●

9/9

Nobuya Hideshima

Member of the Compensation Committee and theNomination Committee

●

●

●

9/9

Ruth Marie Jarman

Member of the Compensation Committee and theNomination Committee

●

●

●

9/9

Hisashi Kobayashi

Member of the Compensation Committee and theNomination Committee

●

●

9/9

Hiroaki Matsuo

Full-time corporate auditor

●

●

●

9/9

Hideaki Onishi

Full-time corporate auditor

●

●

●

9/9

Masaru Namatame

●

●

●

9/9

Kotaro Otsuka

●

●
●
●

●
●
●
●

●

●
*Actual data for FY2021 are used for the attendance to the Board of Directors.

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FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSCORPORATEOVERVIEWTOP MESSAGE

SUSTAINABILITYFEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA

Compliance
The Fujibo Group is committed to ensuring thorough compliance throughout the Group inorder to respond to the demands of society in good faith and to become a company that isalways trusted. We have established the Compliance Committee to ensure corporate compliance with laws and regulations, fairness and ethics. We established a corporate ethics
hotline, which includes and outside consultation service provided by lawyers, as an internalreporting organization to improve committee functions.

Shareholders’ Meeting

Board of Directors
Audit & Supervisory Board

Basic Approach to Compliance
In order to realize our corporate philosophy of “we will always support leading-edge industries by providing new technologies and products demanded by the times, and are committed to realizing a more prosperous and sustainable future for the people, society and theglobal environment,” and to achieve sustainable growth and create medium- to long-term
corporate value, we believe it is important for our directors, officers, and employees to recognize the importance of corporate social responsibility and to act with social common sensein compliance with social rules and regulations, both in Japan and abroad.

Compliance Management System
In order to more concretely advance the Charter of Conduct, which stipulates our code of
conduct in the spirit of compliance with laws and regulations, we have appointed a compliance officer and established “Compliance Rules” under the guidance of the Compliance
Committee. We have appointed chief of compliance and supervisors at each business site
and factory to build an organizational structure centered on the Compliance Committee, withthe aim of strengthening our management system to promote compliance.

Consultation

Management Committee

Compliance Officer
Corporate Ethics Hotline andOutside Consultation Service(Lawyers)

Compliance Committee
Secretariat

Compliance Management Department(Legal Department)

ReportInstruction

Internal Audit OfficeInstruction

ReportHolding company
Chief of Compliance

Compliance Manager

Officers of the holding company

Audit

Consultation

Group companies
Chief of Compliance

Compliance Manager

Officers of each group company

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FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSCORPORATEOVERVIEWTOP MESSAGE

SUSTAINABILITY

Initiatives for Raising Compliance AwarenessIn order to conduct sound business activities, not only do we comply with laws and regulations, but also expand the range of subjects and scope to be observed, such as social norms
and corporate ethics. In order to prevent anticipated risks associated with business activities,
it is important to engage in compliance management and provide education to all employees
to raise their compliance awareness. As part of the Fujibo Group’s efforts to spread and raisecompliance awareness, we make sure that our employees are familiar with the “The FujiboGroup Charter of Conduct” and “Principles of Conduct,” and provide opportunities for employees to acquire correct knowledge of relevant laws and regulations (such as the Unfair
Competition Prevention Act, Trade Secret Management Guidelines, and compliance with laws
and regulations on product quality and labeling). We have also prepared a system in which
the Legal Department and other relevant departments work with external experts to respondto possible legal risks, such as compliance violations due to lack of compliance awareness or
knowledge. In addition, we strive to spread awareness of compliance by informing employeesof revised laws and regulations, such as harassment prevention laws and the Work Style Reform Act, in our internal newsletter each time we respond to internal regulations.

Compliance Education
Each business site conducts compliance awareness-raising activities (compliance programs)
on a semi-annual basis, and provides compliance education for employees where they learn
about important regulatory measures, etc. The results and issues are verified and reported to
the Compliance Committee. We provide compliance education for each level of employees,
including newly hired employees and those recently promoted to management positions. We
also hold study sessions on individual topics such as information security and bribery.

Internal Reporting System
In accordance with the “Corporate Ethics Hotline Operation Procedures,” we have established an internal “Corporate Ethics Hotline” as a point of contact for inquiries and concerns
about corporate ethics and regulatory compliance. The “Corporate Ethics Hotline” is operated not only in-house, but also in cooperation with external consultation services which include female lawyers. This is done to create an environment in which it is easy for employees
to report any concerns, and to handle the consultations and reports fairly and with respect to

FEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA

privacy. In accordance with the Whistleblower Protection Act, we give due consideration so
as not to disadvantage not only the callers (whistleblowers), but also those who cooperatewith them.
We are also working on a whistleblowing system that is not limited to internal use, but
throughout the entire supply chain including the employees of our business partners.

Response to Compliance Violations
In the event of an incident that may result to a potential compliance violation within theGroup, the matter is reported immediately to the relevant department and the Compliance
Committee. Following the report of the incident, the Compliance Committee responds immediately by conducting an investigation. If a compliance violation is found as a result, corrective measures and recurrence prevention policies are formulated and implemented not
only in the relevant department, but also throughout the Group to thoroughly prevent therecurrence of compliance violation. A system has been established for compliance officers
to report serious compliance violations to the Risk Management Committee.

Monitoring the Enhancement of Compliance AwarenessIn order to enhance awareness of compliance, we are working on the dissemination andthorough enforcement of the "The Fujibo Group Charter of Conduct", establishing an organizational structure centered on the Compliance Committee and setting semi-annual targets
for awareness-raising activities such as priority legal measures to comply with important laws
and regulations.
With regards to compliance promotion efforts, each department is required to report to
the Compliance Committee on a semi-annual basis, examining the implementation of thecompliance program and any problems that have arisen. In addition, the Internal Audit Officeconducts multifaceted monitoring, including confirmation of the status of compliance withlaws, regulations and internal rules in operational audits; confirmation of the status of development and operation of control to prevent frauds and errors, such as proper segregation ofduties and IT control, in internal control assessments on financial reporting; and confirmationof whether the quality audits system, in compliance with quality-related laws and regulations,to prevent any inadequate incidents.

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FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSCORPORATEOVERVIEWTOP MESSAGE

SUSTAINABILITY

Anti-Bribery Policy
The Fujibo Group recognizes bribery as a serious risk factor that undermines corporate credibility. We focus on preventing any form of corruption, including bribery, collusion, embezzlement and breach of trust, and ensuring a sound business environment. We have established the following “Fujibo Group Anti-Bribery Policy” to ensure thorough compliance with
anti-bribery laws and internal regulations applicable in the countries and regions where we
conduct business, and to demonstrate ethical and honest behavior. We request all officers,
employees and business partners to thoroughly abide by this policy.

[Fujibo Group Anti-Bribery Policy]
1. Prohibition of bribery
The Group will not give, offer or promise bribes to any person, directly or indirectly,
and will neither accept bribes.
2. Appropriate approval procedures and post factum confirmation procedures
The Group will make payments to public officials following the appropriate approval
procedures, and conduct appropriate post factum confirmation such as monitoring
the status of compliance of this Policy through internal audits.
3. Establishment of an anti-bribery promotion system
Through trainings, etc., the Group will ensure full understanding and compliance withlaws and regulations relating to bribery and this Policy.
4. Bribery risk assessment and control procedures
The Group will conduct risk assessment related to anti-bribery laws and regulations,and establish and operate risk-appropriate control procedures. When commencing
transactions with a new business partner or at the time of an M&A, etc., the Groupwill carry out a preliminary assessment of the counterparty according to bribery risk.
5. Keeping of records and maintaining ﬁnancial control
The Group will maintain records and financial control to ensure accountability in com-

FEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA

pliance with anti-bribery laws and regulations and this Policy.
In addition, the Group will periodically review this Policy and its compliance procedures, and make the appropriate revisions and improvements as necessary.
6. Penalties
In the event that an officer or employee violates anti-bribery laws or regulations or
this Policy, the Group will carry out the necessary investigation properly and promptly,
and will take the appropriate punitive action against the violating party in accordancewith the internal regulations of each Group company.

Tax Governance
Maintaining and improving tax governance is essential for enhancing corporate value. We
strive to improve our governance system through initiatives such as sharing information on
tax issues in cooperation with group companies and departments, and reporting on the status of tax enforcement.

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FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSCORPORATEOVERVIEWTOP MESSAGE

SUSTAINABILITYFEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATARISK MANAGEMENT
Basic Concept
The Fujibo Group strives to ensure sound management and stable earnings to achieve sustained growth by detecting various risks that may have a material impact on our business
operations at an early stage and managing them in a prompt and appropriate manner when
they become apparent. Hence, we consider risk management as an important matter of ourbusiness strategy and has set a basic policy for risk management.

Risk Management System
We are working on establishing and maintaining a system to identify and manage risk information pertaining to the entire group. In our risk management system, we have established
the Risk Management Committee to collect and analyze information on various risks surrounding the group and to take measures when risks become apparent. Depending on thenature of risk, the committee consults with internal and external experts to take action froma more specialized perspective.

Risk Management System
Shareholders’ Meeting

Board of Directors

Audit & Supervisory Board

Management Committee

Risk Management Committee

General Affairs Department, Human Resources
Department and Legal
Department

Corporate Planning Department
and Finance and Accounting
Department

Credit risk

Market risk

Liquidity
riskBusiness Information Tangible
risk
asset risk asset risk

Humanresources
risk

Operational riskPrimary check

Fujibo holdings’ divisions and its subsidiaries

Internal Audit Office

Legal risk

Reputation
risk
Secondary
check

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FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSCORPORATEOVERVIEWTOP MESSAGE

SUSTAINABILITY

Risk Determination Process
The Risk Management Committee addresses development of a process or system to prevent
risk occurrence while visualizing and identifying potential material risks. Specifically, we identify material risks and assess their impact and frequency of occurrence in accordance withthe following process:1. Determine materiality of risks through risk analysis;
2. Develop a plan to manage each risk;
3. Evaluate and improve the plan afterward and implement continuous measures.
By continuously implementing the PDCA cycle of countermeasures, evaluation, and improvement in the risk management process, we believe that we can respond to risks more effectively.

How to Deal with Material Risks
Based on the findings of internal audits and other factors, we identify “material risks” every
year from the perspective of necessity of measures and the degree of impact on corporate
management and society. The material risks in the fiscal year 2021 are as below: For theserisks, respective risk handling departments have taken necessary measures:[Material Risks]• Unusual changes in financial condition, business results and cash flows;• Risks associated with important contracts;• Dependence on particular products and customers;• Risks concerning intellectual property;• Legal restrictions;• Product liability;• Impact of natural disaster or power outage, etc.;• Impact of infectious diseases such as COVID-19;• Impairment loss on fixed assets.

Business Continuity Plan
In the event of a major natural disaster, pandemic caused by an epidemic, large-scale terrorist attack or riot in Japan or overseas, war, or any other incident, accident, or problem that
seriously interferes with the Group's business operations, we will take the following actions

FEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA

to ensure the safety and security of its employees while continuing its business operations
smoothly, ensuring an early recovery and a stable supply of products and services, and supporting the recovery and reconstruction of local communities and customers. In an emergency, we have established an emergency headquarters and a system to respond quickly andappropriately in cooperation with related departments.

COVID-19 and BCP
While the Group has been affected in various ways by the spread of COVID-19, we
have established a Risk Management Committee to take measures from the perspective of business continuity, giving the highest priority to our employees’ health. We arealso engaging in social contribution activities for healthcare workers.
Since the outbreak of the pandemic and up to the end of October 2021, there has
been no suspension or stoppage of production, closure of business sites, or other business operations due to the outbreak of COVID-19 infection, including at overseas sites.
March 2020
• Established a Crisis Management Committee, which took the lead in collection and analysis of information on impact associated with the spread of the infections on the Group’sbusiness management and decided on response policies and various measures.
• In order to maintain stable production at each business site, the Management Committee instructed the company to review the supply chain, build up inventories ofraw materials and products, and promote automation and labor saving in production
processes.
April 2020 to October 31, 2021
• Notified the whole group of what to do when any employee is infected or becomesin close contact with the infected.
• Adopted a work from home system for all employees at business sites in metropolitan areas to have them work from home in principle.
• Conducting sales activities, meetings and training online.
• Each month, the Board of Directors of each operating company identifies potential
and actual risks from the perspective of BCP, and confirms the development andresults of countermeasures against these risks.
January-March 2021
• Donated relief supplies (underwear) to medical institutions combating COVID-19.

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FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSCORPORATEOVERVIEWTOP MESSAGE

SUSTAINABILITY

Guidelines and Initiatives on Intellectual Property
The Fujibo Group is proactively undertaking strategic initiatives related to intellectual property to strengthen our technological competitiveness for global expansion and to enhance ourcorporate value. Specifically, we strive to secure the superiority of our business and contribute to a sustainable society through the appropriate protection of intellectual property rights,
the proactive utilization of intellectual property rights, the pursuit of innovation in originaltechnology, and the monitoring of patent registrations in the global market.
At the same time, we are striving to promote our business in a fair way not to infringe othercompanies’ rights from the R&D phase.
1. Organizational system
The “Intellectual Property Office” has general control over patents, utility models, designs
and trademarks among intellectual property. The Intellectual Property Office has establisheda management system to facilitate the strategic acquisition and management of our intellectual property and secures business advantages and a certain degree of freedom in researchand development to promote the strategic use of the intellectual property as sources of thecompany’s competitiveness.
2. Invention and innovation promotion system
As a system to promote the creation of intellectual property, we have established an award
system for outstanding inventions that contribute to our business, and a reward system toreturn substantial benefits for employee inventions.
3. Education system
We hold workshops for relevant departments for the understanding and establishment ofbasic ideas of intellectual property and carry out activities to encourage all employees toprotect and utilize intellectual property. Further, we are improving our education system on
intellectual property, such as inviting external experts to give practical lectures for front-line
development and sales personnel on how to handle risks associated intellectual property
and give lectures for new employees or candidates for promotion.
4. Actions against counterfeit products
Textile products, such as B.V.D., have a risk of brand damage caused by unauthorized use of
the brand by third parties. For this reason, we are resolutely taking action against the sale ofcounterfeit products of our brand and the use and description of similar trademarks throughthe monitoring of Internet sales sites.

FEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA

Compliance with Anti-Monopoly Act
The Group strictly prohibits any actions that violates each country's competition laws. In order to ensure that all employees are aware of and thoroughly comply with competition laws,
we have established a “Code of Conduct for Compliance with Anti-Monopoly Act” and provide training in competition laws and compliance. We are also working on the establishmentof a company-wide compliance system to ensure compliance with the Anti-Monopoly Act,
including the establishment of a hotline for consultation about suspicious conducts.
Further, in order to prevent actual or suspected cartel activities, we have set criteria for attending meetings with competitors and industry group meetings, and prohibit inappropriate
contact and information exchange with competitors.

Information Security
The Group recognizes various information obtained in the course of our business activities
as important assets.
It is our responsibility to properly manage, and prevent leakage of all information assets,
including information on research and development, technology and management and confidential information about our customers and clients. In order to properly protect and manage
these important assets, we have formulated an “Information Security Policy,” with an aim toestablish and further improve our information security system. We are attempting to prevent
unauthorized access from the outside by ensuring awareness of compliance rules relating
to the protection of information, including corporate information and personal information,
under the "Information Security Policy."
In order to maintain and manage information security, we also have established a comprehensive management system by instituting an Information Security Committee.

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FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSCORPORATEOVERVIEWESG DATATOP MESSAGE

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GOVERNANCE

ESG DATAThe periods covered are the fiscal years ended March 31, 2018, 2019, 2020 and 2021, or as of March 31 of each year, unless otherwise noted.

Governance Data
Corporate governance
Number of directors

2018

2019

Total

8

Male

2021

8

8

FemaleNumber of outside directors (ratio)

2020

Managers

8

8

7

Total

171

169

162

139

7

Male

162

159

151

127

Female9(5.3%)

10(5.9%)

11(6.8%)

12(8.6%)

Number of female at a general manager level or higher (ratio)(ratio of female to all employees at a general manager levelor higher)

3(5.7%)

3(4.7%)

3(5.1%)

4(8.5%)

Ratio of female at a section manager level (ratio of female toemployees at a section manager level)

6(5.1%)

7(6.7%)

8(7.8%)

8(8.7%)

1

1

3(37.5%)

3(37.5%)

3(37.5%)

3(37.5%)‑‑

1(12.5%)

1(12.5%)

Social Data

Number of employees by employment type

Number of employees (Consolidated)

Total

Diversity
Number of employees by gender(Consolidated) (ratio)(excluding temporary employees)

1,353

FY2017FY20181,388

FY2018FY2019FY20201,251

FY2019FY2020(ratio)‑FY2017FY2019Number of managers (Consolidated)*As of June 30th of each year

Employee composition

FY2018

8‑Number of non-Japanese directors (ratio)

FY20171,156

FY2020

Total

1,353

1,388

1,251

1,156

Male

762

788

771

732

Female591(43.7%)

600(43.2%)

480(38.4%)

424(36.7%)

Number of non-Japanese employees (Consolidated)

544

573

461

399

Number of employees by employment type(Consolidated)*The number of temporary employees is the annual
average.

FY2017

1,388

1,251

1,156

Temporary

171

182

155

123

FY2017

Number of employees with disabilities (ratio)*As of June 1st of each year

FY2018FY2019FY2020

Total

53

61

40

60

Male

39

48

30

46

14
(26.4%)

13(21.3%)

10(25.0%)

14(23.3%)

Female*Domestic consolidated subsidiaries

FY20201,353*Domestic consolidated subsidiaries

Employment of people with disabilities

FY2019Regular

Recruitment

Number of hires (ratio)(including mid-career hires)

FY2018201814(1.5%)

201917(1.8%)

2020
15(1.6%)

2021
16(1.9%)

49

FUJIBO HOLDINGS, INC. SUSTAINABILITY REPORT 2021
TABLE OF CONTENTSCORPORATEOVERVIEWTOP MESSAGE

SUSTAINABILITYFEATURESENVIRONMENTSOCIAL

GOVERNANCE

ESG DATA

Environmental Data
Employee data

FY2017*Domestic consolidated subsidiaries

Average age of employees (years old)

Average years continuously employed(years old)

FY2019Energy and greenhouse gas emissions

FY2020*Domestic consolidated subsidiaries

Total

41.7

41.7

41.8

41.6

Male

42.1

41.9

42.0

41.6

Female

39.9

40.9

41.1

41.8

Total

18.2

17.9

18.0

17.4

Male

18.7

18.2

18.1

17.4

Female

16.2

16.8

17.2

17.6

FY2017*Domestic consolidated subsidiaries

FY2018FY2019

Total

-

-

73.1%

60.9%

Male

-

-

76.2%

60.0%

Female

-

-

60.0%

66.7%

2.2%

2.4%

4.1%

4.2%

Turnover rate (%)

Work-life balance

FY2017*Domestic consolidated subsidiaries

FY2018FY2019FY2020FY2018FY2019FY2020

Total

51.0

51.3

52.6

51.5

Non-energy related

5.3

5.1

6.3

7.0

Energy related

45.7

46.1

46.2

44.4

Energy consumption (TJ and kWh)

Total

786.4

817.5

804.4

792.0

53,44254,35756,04656,882*Domestic consolidated subsidiaries

FY2020FY2017

Greenhouse gas emissions(thousand tons)

Water (Polishing Pad Business, Chemical Industrial Products
Business)

Seniority status

Retention (%)(All new graduates regardless of academic
background)

FY2018Water usage (thousand m3)

Total

Waste and chemical substances

FY20181,501

FY2017*Domestic consolidated subsidiaries

Waste discharge(thousand tons)

FY2017FY20191,672

FY2018FY20201,756

FY20191,871

FY2020

Total

37.8

40.1

44.5

45.0

Outsourced

18.8

21.6

26.2

24.7

Internally processed

19.0

18.5

18.3

20.2

Soot and dust emissions (tons)

5.6

3.4

6.3

7.7

Number of days of paid leave given

20.7

21.0

22.1

20.8

NOx emissions (tons)

34.0

13.8

30.2

32.8

Rate of annual paid leave taken (%)

29.0%

33.6%

43.3%

42.5%

SOx emissions (tons)

15.4

5.3

8.1

11.0

Total

5

5

0

3

Amount of PRTR substances treated (tons)

7,156

7,922

8,652

8,448

Male

0

0

0

1

Female

5

5

0

2

Total

1

1

3

3

Male

0

0

0

0

Female113

3

Employees’ monthly average overtime hours (hours)

7.4

8.4

9.2

10.7

*Average of all employees and excluding paid leave carried forward

Number of employees who took parental
leave

Number of employees who work shorter
hours for childcare