Sustainability Management

The JSP Group s sustainability management is to continuously enhance our corporate value with a strong awareness of corporate responsibility in the elements of environment, society, and governance.
Foam products are playing an increasingly important role in solving issues such as global warming and food shortages, as well as other problems caused by environmental changes.
The JSP Group will continue to promote sustainability management and work to gain the understanding and support of all stakeholders.

Basic Sustainability Policy

Materiality Relationship Chart

1. The Basic Sustainability Policy is as follows

The JSP Group, with its corporate philosophy of Creatively and Actively Contribute to Society ,aims to continuously enhance its corporate value with a strong awareness of its corporate
responsibility in the elements of environment, society and corporate governance.

2. JSP will make the Basic Sustainability Policy known to all employees.
3. JSP complies with all relevant laws, regulations, and standards, and implements
sustainability promotion management in a systematic, organized, and sustainable
manner.

In medium-term business plan Change for Growth (FY2021‒FY2023), the JSP Group has beenworking under the slogan of broadening the value we provide for both economic value and social
value to our customers and for addressing social issue, through sustainability management.
Based on corporate philosophy of Creatively and Actively Contribute to Society , the JSP
Group is working to further enhance our corporate value by incorporating environmental, socialand corporate governance factors into its various management activities, thereby reducing risks
and capturing proﬁt opportunities, and increasing the sustainability of our business model.

Corporate Philosophy
Creatively and Actively
Contribute to Society

Company-wide Sustainability Promotion Structure● Board of Directors
The Board of Directors oversees sustainability management. In the PDCA cycle of sustainability promotion
activities, the Board of Directors is responsible forapproving plans for sustainability promotion activities,
receiving reports on performance and overseeing overall
activities.
● Executive Oﬃcers Meeting
The Executive Oﬃcers Meeting controls the overallsustainability management. In the PDCA cycle of sustainability promotion activities, it conﬁrms and reviews the
progress of company-wide activities and plays a role inpromoting these activities.

Board of Directors

Basic Sustainability
PolicyExecutive Oﬃcers Meeting

Long-term vision
VISION2027

Sustainability Promotion
Committee

Medium-term business plan
Change for Growth(FY2021‒FY2023)

Entire Company● Sustainability Promotion Committee
The Sustainability Promotion Committee serves as anadvisory body to the Executive Oﬃcers Meeting and is
responsible for reviewing specialized issues essential to the promotion of sustainability andimportant issues related to the promotion of sustainability.

▶ P.10

Basic Concept

1.

● Entire Company
Entire Company refers speciﬁcally to business divisions, corporate divisions, plants, research
centers, Group companies, etc., which are responsible for implementing sustainability
promotion activities.
● Sustainability Promotion Department
The Sustainability Promotion Department serves as the organizer of the Sustainability Promotion Committee and also strives to comprehensively understand sustainability promotion
activities and ensure that they function eﬀectively. In addition, the Sustainability Promotion
Department veriﬁes the degree of achievement of sustainability contributions, consolidates
stakeholder opinions received throughout the company and reports them to the ExecutiveOﬃcers Meeting.

JSP Corporate Report 2023

Expand provided value
from economic value
to social value to solve
customers and social
issuesMaterial issues

The creation ofshared value▶ P.2019 Sustainability

2.

Strengthen
management baseMaterial issues

Environment
Society
Governance▶ P.20Materiality

With our corporate philosophy of Creatively and Actively Contribute to Society, the basic sustainability policy of the JSP Group is to have strong awareness of corporate responsibility in theareas of the environment, society, and corporate governance and strive for the sustainable enhancement of corporate value. By identifying material issues (materiality) in sustainability management, the JSP Group incorporates responses to sustainability issues into our management strategy and implements the strategy.

Materiality Selection Process

Environment/Society/GovernancePhase 1: Identiﬁcation of Issues and Materiality Assessment

The JSP Group identiﬁes a wide range of social issues, referring to international guidelines such as GRI standards, the 17 goals of the SDGs and trends at other companies
and then evaluates the level of importance from two perspectives: the importance from
JSP Group s perspective and the importance from the stakeholders perspective.

Materiality concerning the environment (E)Materiality（１）Global

Phase 2: Deliberations by the Executive Oﬃcers Meeting

The Executive Oﬃcers Meeting deliberates on issues of high importance and in the process
selects materiality candidates, incorporating the basic concepts of the Medium-term
Business Plan Change for Growth and product perspectives.

Phase 3: Resolution by management

environmental
protection（１）Human resource

Activities for Materiality

development

The creation of shared value（２）Corporate job

Creation of shared value (CSV): Materiality concerning contributions

satisfaction

through businesses operations and products

Main Activities by JSP

SDGs（３）Climate change mitigation（４）Food and healthy living

Global environmental conservation throughResponsible Care (RC) activities.

Main Activities by JSP

SDGs

Promote human resource development byenhancing the capabilities of all employees.
Create a work environment where employeeswith diverse values respect each other andcan play an active role.
Ensure the health and safety of employees and（３）Occupational safety local residents by striving to achieve zero accidents
and zero injuries in our business activities.

（１）Global environmental
conservation（２）Plastic resource recycling

SDGs

Materiality concerning society (S)Materiality

Materiality

Main Activities by JSP（４）Structure of
Promote operational eﬃciency through theinformation systems use of digital technology.

JSP s foaming technologies
will expand the value provided

Materiality concerning governance (G)from economic value to social

Materiality

value to solve customers andsocial issues.

（１）Strengthening ofcorporate governance（５）Contribution to safety

JSP Corporate Report 2023

20 Sustainability

Main Activities by JSP
Strengthen Group-wide corporate governancethrough compliance, internal control and risk
management initiatives.

SDGs

Response to Risks and Opportunities
The JSP Group conducts annual risk assessments to identify, analyze, and evaluate risks, and aims to prevent risks from materializing as well as to reduce them.
Major risk factors that may aﬀect the JSP Group s ﬁnancial position, business results, cash ﬂows, etc. are described below. These risk factors are based on assumptions made as of June 29, 2023 and do not cover
all risks. Considering the results of the risk assessment, these risks are listed here as matters which could have an impact on the decisions of investors.

Risks related to the (external) business environment
Main contents of risks and opportunities

Our main handling measures

Continuing from the previous medium-term business plan, theongoing medium-term business plan (FY2021‒FY2023) Change for
Growth aims to expand the three business domains of Automotive
parts, Thermal insulation materials for buildings and houses, andFPD cushioning materials as a driving force for sustainable growth.
During the previous medium-term business plan period, we invested
in capacity expansion in these business areas, and in thismedium-term business plan, we will take measures for investment
recovery. However, the recovery may not proceed as planned
because of the changes in the market environment due to various
factors such as demand, economic conditions, technological trends,
and revisions to laws and regulations.

In order to respond to changes in the market environment, the
JSP Group will continue to expand into new business domains
in addition to the existing businesses. Moreover, in response to
the growing awareness of environmental issues we will
promote our transformation strategy with a focus onsustainability management and strive to provide products andservices that are compatible with a recycling-based economy.

(1) Changes in the major market environment

The JSP Group aims to reduce risks by having the Global
Business Division manage the PDCA cycle of each site as ahead oﬃce function. In addition, we will further enhance ourinternal control functions to strengthen the Group governance.

(3) Intensifying price competition
Some of our product lines have long life cycles and many ofthese products are subject to severe price competition.
Particularly in the Asian region, severe price competition is
expected to continue due to various factors such as entry of
local companies into the market.
(4) Fluctuations in raw material and fuel prices

The raw materials and fuels we use are greatly aﬀected by
ﬂuctuations in the prices of crude oil and naphtha, which canlead to signiﬁcant price changes. In our case, when raw
material and fuel costs rise sharply, this tend to cause businessperformance to decline due to problems such as delay inadjusting product prices accordingly.

Main contents of risks and opportunities(1) Securing of human resources

Our main handling measures

Securing human resources in a timely manner is becoming morediﬃcult every year due to the shortage of the working population
caused by the declining birthrate, the aging population as well as
the shortage of human resources in speciﬁc ﬁelds with highexpertise amid the digital revolution. In addition, the shortage ofhuman resources is becoming a major factor in increasing costs interms of production and logistics which may aﬀect the businessperformance of the JSP Group.

The JSP Group considers human resource development as one of
the key management issues in the basic policy Strengthen the
management base of the long-term vision VISION 2027 and will
strive to strengthen its organization further as a global corporation
by enhancing the human resource training system. In addition, we
will eliminate labor shortages by implementing measures such as
shortening production processes and automating manufacturinglines.

In the event of the spread of infectious diseases and epidemics, if
employees of the JSP Group get infected and the infection spreads
within the Company through contact between employees, etc.,
production and shipments at factories may be disrupted andoperations may be suspended for a certain period of time. In
addition, even if our factories are able to operate, there is a risk of
having to suspend operations if problems arise in the supply chain
such as when the supply of raw materials is suspended.

In order to ensure the health and safety of its employees, the
JSP Group will both continue to implement COVID-19 infection
prevention measures and implement further improvements of its
management structure.

(2) Risks related to the spread of infectious diseases (pandemics)(2) Risks related to global business development
Since the JSP Group operates widely in North America, SouthAmerica, Europe and Asia, its business activities in each region may
be aﬀected by political or economic factors, investment permits due
to environmental regulations, transfer pricing taxation issues,changes in social conditions, trends in various regulations, labor
disputes, diﬃculties in securing human resources, and exchange
rate ﬂuctuations, etc., which could have an impact on the businessresults and ﬁnancial position of the JSP Group.

Risks related to business operations(3) Intellectual property rights
The JSP Group owns a large number of intellectual property rights,
including international patent rights, and it is important to protectthese rights in order to secure future proﬁts. In the event of
infringement by other companies or disputes with other companies,
this could have an impact on our business.

The JSP Group aims to secure an appropriate proﬁt margin byfocusing on cost reduction and maintaining and expanding its
competitive advantage through a shift to high value-added
products.

(4) Quality assurance

In order to build a management base that is not aﬀected by
ﬂuctuations in raw material and fuel prices, the JSP Group willconsider formula pricing with customers for applying these
ﬂuctuations to product pricing in a timely manner and also
continue to make eﬀorts to reduce costs.

(5) Impairment of ﬁxed assets

As a manufacturer, the JSP Group is exposed to the risk of
unexpected quality defects and product liability lawsuits. Many ofour products are used as components of end products such as foodcontainers, automotive parts, and thermal insulation materials forbuildings and houses, and quality defects could lead to serious
damages for customers.
Impairment losses on ﬁxed assets held by the JSP Group may be
incurred due to a decline in proﬁtability caused by a signiﬁcantdeterioration in the business environment or a fall in market prices,which may aﬀect the business results and ﬁnancial position of the
JSP Group.

In order to avoid this risk, the JSP Group is working tostrengthen its system globally for intellectual property
management, with the controlling division, the Intellectual
Property Division leading these eﬀorts.

The JSP Group strengthens its quality assurance system by
actively promoting the acquisition of quality management
system certiﬁcation at each plant.

The JSP Group conducts regular monitoring of importantinvestments by requesting reports at major meetings attended
by senior management to conﬁrm that there are no major
deviations from the original plan.

(6) Information security and information management
As information technology continues to evolve at a high level,
we cannot completely eliminate the possibility of serious
failures of information system infrastructure or communicationlines at unexpected levels or the destruction or theft of
conﬁdential information related to management.

In order to strengthen the safety and information security of theinformation systems, the JSP Group has established related
regulations and aims to ensure the conﬁdentiality, integrity, andavailability of the information and information systems in its
possession and manages risks such as information leaks bycontinuously providing guidelines for improving the level of risk
management.
In addition, we conduct regular drills to respond to attacks on our
information systems from outside and to prepare for emergencies.

(7) Compliance and internal control

As the JSP Group expands its business globally, the changes inlaws and regulations in various regions of the world may make itdiﬃcult to comply with such laws and regulations. Accordingly,
there is a possibility that legal violations may occur in the future,and this compliance could cause new expenses and restrictions
on our business activities.

JSP Corporate Report 2023

21 Sustainability

The JSP Group recognizes the importance of compliance and otherappropriate internal controls and has established and is operatingsuch systems. Speciﬁcally, we are working to strengthen ourcompliance system by establishing and thoroughly disseminatingcode of conduct that is common to our Group companies and by
establishing a whistleblowing system that can be used by all ourGroup employees.

Environmental Activities
As a foam products manufacturer, the JSP Group has been supplying the world with products that are in line with the current trends of energy saving, resource saving, and environmental conservation. With thecorporate philosophy of Creatively and Actively Contribute to Society we are pursuing environmentally friendly foam technology with the aim of establishing and implementing a product recycling system.
In addition, we have been promoting activities related to environmental preservation and product safety under the framework of the ISO 14001 environmental management system. Since FY2011, we have joined
the Responsible Care activities of the Japan Chemical Industry Association (JCIA) to conduct activities related to security and disaster prevention, occupational health and safety, logistics safety, and dialogue withsociety. The JSP Group will continue to strive for synergy between business and the environment from a global perspective in order to pass on the irreplaceable global environment to future generations.

Environment Management Structure
Basic Principle
The green earth has nurtured
us many blessings and theprosperity we enjoy today. In
order to pass on this abundantenvironment to the next
generation, JSP is committed
to group-wide eﬀorts toconserve the global environment
as the most important issue ofour management philosophy,
Creatively and Actively
Contribute to Society .

Environment Policy•We practice corporate
activities that protect the
global environment andmanufacture environmentallyfriendly products.
•We comply with laws,
regulations and otherstandards, and strive toprotect the environment.
•We continuously improve ourenvironmental management
system and strive to enhance
our environmental performance.

ISO14001 Certiﬁed Plants

Organizational Structure of Environment Management System

JSP Corporation
Head Oﬃce, Hokkaido Plant, Kanuma Plants (Kanuma
No.1 Plant, Recycling Plant, Kanuma MF Plant, Kanuma, Kashima Plant,
Logistic Center, Kanuma No.2 Plant*1）
Yokkaichi No.1 Plant, Yokkaichi Research Center,
Yokkaichi No.2 Plant*2, Kansai Plant, and Kyusyu Plant*1*2

Divisions
President &Representative
Director

Including Tochigi No.1 Plant of JSP Molding Co., Ltd.
Including Mie Plant of JSP Molding Co., Ltd.

Chief
Administrator

JSP Group companies in Japan
Seihoku Package Co., Ltd. and Honshu PetrochemicalCo., Ltd.
JSP Group companies in Overseas
Butler Plant（USA）, Tallahoma No.2 Plant（USA）, Brazil,France, Czech Republic, Taiwan, Gimcheon Plant（Korea）, Wuxi (China), Dongguan (China), Wuhan(China)Japan

Czech Republic

China

Corporate Division

Business DivisionOﬃce Environment
ISO Administrator

Oﬃce Environment ISO
Promotion Committee

Departments

Head Oﬃce Environment
ISO Administrator

Head Oﬃce Environment
ISO Promotion Committee

Head Oﬃce departments

Hokkaido Plant
Environment ISO
Administrator

Hokkaido Plant
Environment ISO
Promotion Committee

Hokkaido Plant
departments

Kanuma No. 1 Plant
Environment ISO
Administrator

Kanuma No. 1 Plant
Environment ISO
Promotion Committee

Kanuma No. 1 Plant*1
departments

Kanuma MF Plant
Environment ISO
Administrator

Kanuma MF Plant
Environment ISO
Promotion Committee

Kanuma MF Plant*2
departments

Kanuma No. 2 Plant
Environment ISO
Administrator

Kanuma No. 2 Plant
Environment ISO
Promotion Committee

Kanuma No. 2 Plant*3
departments

Kashima Plant
Environment ISO
Administrator

Kashima Plant
Environment ISO
Promotion Committee

Kashima Plant
departments

Yokkaichi No. 1 Plant
Environment ISO
Administrator

Yokkaichi No. 1 Plant
Environment ISO
Promotion Committee

Yokkaichi No. 1
Plant*4 departments

Yokkaichi No. 2 Plant
Environment ISO
Administrator

Yokkaichi No. 2 Plant
Environment ISO
Promotion Committee

Yokkaichi No. 2
Plant*5 departments

Kansai Plant Environment
ISO Administrator

Kansai Plant
Environment ISO
Promotion Committee

Kansai Plant
departments

Kyushu Plant
Environment ISO
Administrator

Kyushu Plant
Environment ISO
Promotion Committee

Kyushu Plant
departments*1 Including the Recycling Center*2 Including the Kanuma Logistics Center*3 Including the Tochigi No.1 Plant of JSP Molding Co., Ltd.

JSP Corporate Report 2023

22 Sustainability*4 Including the Yokkaichi Research Center*5 Including the Mie Plant of JSP Molding Co., Ltd.

Environmental Activities
Environmental Conservation
Input & output (implemented in 2022)

Reduction of energy consumption

INPUT
Raw material input

Energy consumption(crude oil equivalent)

Water consumption

133,254t

35,068kl

869t

JSP Corporation sbusiness activities

Research

Development

Production

Products

Emission to the atmosphere108,328t

CO2 ････････63,033t-CO₂
NO x ･･････････16.6 t
SO x ････････････2.5 t
Dust ･･･････････3.2 t

Sales

Discharge to water areas
Amount ofwastewater ････････698t
BOD emissions････0.5t
COD emissions････2.1t
Total nitrogen
discharge ･････････1.9t
Total phosphorus
discharge ･････････0.2t

Amount of Waste Plastic Recycled
4,596tTotal waste
generated････････5,433t（kl）
40,000

180

（％）
110

170

100

（kt）
36,84836,63830,000162.7

35,04936,855

157.3
150.1

35,068

153.4

160
151.3

150

0

Trend of CO2 emissions

（％）
100
83.9

105,000
70,631

Ratio of energy intensity based on
the contribution ratio method to the previous year

10,000JSP Corporation's CO2 emissions in FY2022 decreased by approximately 4.8% (3,207 t-CO2 decrease) fromthe previous ﬁscal year. The main reasons for the improvement are the aggregation of plant operating days,
eﬀective use of waste heat, and our eﬀorts toward reducing air leaks and heat-radiation loss in the plants.
Compared to FY2013 values, emissions were reduced by approximately 21.5%.
Our foam material contributes to the reduction of greenhouse gas emissions in unseen areas ofautomobiles and homes, such as improving fuel eﬃciency when used in automobiles and improving heating
and cooling eﬃciency when used as insulation in homes.

70,000Trend of crude oil equivalent energy consumption

20,000

Reduction of CO2 emissions

88.0*Contribution ratio method: Energy consumption intensity is calculated for each product group, and the ratio of energy consumption
intensity of the entire businesses to that of the previous year is calculated in proportion to the ratio of the product group.

Waste discharge

OUTPUT（t-CO2）140,000

In FY2022, JSP Corporation s energy consumption per unit of production, calculated from the energy use
contribution ratio*, improved to 96.9% compared to the previous year, achieving our goal of improving energy
consumption per unit of production compared to the previous year. In addition, the average change in speciﬁc
energy consumption per unit of production over the ﬁve-year period was 100.3%, and the goal of improving the
average change in speciﬁc energy consumption per unit of production over the ﬁve-year period by an average of
1% or more per year was not achieved. From FY2023 onward, we will further implement the PDCA cycle forenergy conservation activities at each business site and promote the introduction of green energy.

67,36778.4

62,991

82.5

66,24078.5

63,03375
50
25

35,0000

0FY20182019
2020■ Trend of CO2 emissions (left axis)

2021
2022
GHG emissions index based on 2013 (right axis)

JSP Corporate Report 2023

0
FY2018

2019

2020

2021

2022

101.0

102.3

101.1

100.3
96.9

90
0
FY2019 2020

2021

Crude oil equivalent energy consumption (left axis)
Production volume (right axis)

Challenge for modal shift2022

5-yearaveragechange inintensity

With the aim of environmental responsiveness, energy eﬃciency, and transportation stability in logistics,
JSP Corporation is implementing modal shift to rail and ferry transportation, which emit less CO2 thantruck transportation. Modal shifts are also eﬀective for safe and stable supply in the event of roaddisruptions due to natural disasters. It has a strong presence as a secondary or tertiary means oftransportation. We will continue to actively engage in modal shift initiatives in cooperation with ourbusiness divisions.

Reduction of water usage

Reduction of landﬁll amounts

JSP Corporation carries out production activities
using a water circulation system that recycles
water without throwing it away in the
manufacturing process. In FY2022, water
consumption was lower than in FY2021 due toeﬃcient use and thorough wastewater management at each plant.

In JSP Corporation s mid-term Responsible Care plan, we
set a target for the ﬁnal landﬁll amounts in FY2022 ofcontinuing to reduce landﬁll amounts (managing landﬁll
amounts not to exceed the previous year s amounts)
and implemented systematic reduction activities at eachbusiness site. As a result, we were able to signiﬁcantly
decrease the amount compared to FY2021.

Details of maintenance plan and results of industrial waste treatment facility (incinerator)
https://www.co-jsp.co.jp/english/sustainability/e/e̲protection.html

23 Sustainability

Environmental Activities
Information Disclosures Based on TCFD Recommendations
JSP declared its support for recommendations by the Task Force on Climate-related Financial Disclosures (TCFD) in December 2021. Seeing climate change-related events as business risks, we aim to respond tothem while identifying new opportunities to enhance corporate value.
In addition, the company views the TCFD guidelines as an eﬀective framework for organically and practically promoting activities to realize a sustainable society. We will use the TCFD as a tool for dialogue with various
stakeholders. By addressing climate change and as a true global supplier, we aim to increase our social and economic value, and realize the corporate philosophy Creatively and Actively Contribute to Society .

Governance and Risk Management
The JSP Group is working to achieve sustainability through a company-wide sustainability promotion system. The Board of Directors, chaired by
the President, oversees sustainability-relatedrisks and opportunities in management activities
and plays a governance role. The ExecutiveOﬃcers Meeting is responsible for managing
sustainability-related risks and opportunities inmanagement activities, carrying out reviews andmaking decisions on responses.
The Sustainability Promotion Committee, anadvisory body to the Executive Oﬃcers Meeting,works with the Risk and Compliance Committee,
business units and the corporate divisions to
identify and assess sustainability risks andopportunities that have a signiﬁcant impact onmanagement activities, and to consider policies
and measures to be taken by the JSP Group,
reporting the results to the Executive Oﬃcers
Meeting and the Board of Directors.

Strategies
１．Contribute to climate change mitigation by further promoting environmentally friendly products
２．
Contribute to the recycling of plastic resources by promoting recycling activities
３．Contribute to climate change mitigation by reducing GHG emissions and using energy more eﬃciently
Introduction of climate change-responsive products
MIRAFOAM Λ is a high-performance, next-generation thermal insulation material
developed by JSP using its accumulated plastic foaming technologies.
By adding special technology to MIRAFOAM, JSP has succeeded in further improving its
thermal insulation performance, which was previously considered a limitation of extruded
polystyrene foam, achieving a thermal conductivity of 0.022 W/m-K.
With the promotion of higher thermal insulation houses, expectations are high for thisrevolutionary heat insulation material to make a signiﬁcant contribution to reducing GHG
emissions.

Introduction of Products that Contribute to the Recycling of Plastic Resources
ARPRO RE, expanded polypropylene made from recycled polypropylene, has been
adopted in the market. We have further expanded our recycling activities by developing
ARPRO RE OCEAN, a product made from recycled raw materials such as ﬁshing nets andother marine waste, thereby contributing to the reduction of CO 2 emissions and thereuse of marine waste. We have also developed ARPRO REvolution, a product that uses
90% or more recycled raw materials.
The picture on the right shows ARPRO 35 Ocean

JSP Corporate Report 2023

24 Sustainability

Environmental Activities
Information Disclosures Based on TCFD Recommendations
Scenario Analysis for Strategy Development
Assumptions for Scenario Analysis●Target Year: FY2030●Scenarios* : In which the global average temperature increase is limited to 1.5°
C above pre-industrial levels. In which the global average temperature increase is 4°
C above pre-industrial levels.
*The scenario analysis was conducted using SSP-1 (sustainable) and SSP-3 (regional fragmentation) from the Japanese SSP, published by the National Institute for Environmental
Studies, based on the Shared Socio-Economic Pathways (SSP), published by the Intergovernmental Panel on Climate Change (IPCC).

●Target Entity: JSP Corporation (non-consolidated)●Evaluate the impact of risks and opportunities on the entire Company s business portfolio and develop response strategies
List of transition risks and opportunities under 1.5°
C scenario
Transition risk

PolicyList of physical risks and opportunities under 4°
C scenario

Impact assessment

Physical risk

Key response

Increase in carbon prices

Increase in operating
costs

・Reduce GHG emissions through promotion of energy conservation
・Promote introduction of renewable energy
・Reduce GHG emissions through logistics optimization

Introduction of a percentage
standard for the use of recycledresources

Increase in costs causedby competition forrecycled raw materials

・Diversify recycled raw materials suppliers
・Enhance development of products using recycled raw
materials

Deterioration in earnings
of existing products

・Further promotion of material recycling
・Work on chemical recycling as an industry organization
・Assess and reduce environmental impact (GHG emissions,water consumption, etc.) and disclose information
・Promote development of bio-based products

Deterioration in earnings
of existing businesses

・Further promotion of material recycling
・Strengthen disclosure of information on GHG emission
reductions through climate change-responsive products・Strengthen disclosure of information on environmentallyfriendly products・Assess product life cycle and strengthen disclosure of information
・Enhance establishment of recycling chains

Increased competition withTechnology
competing materials

Sharp ﬂuctuations in raw
Market/ material prices andReputation formation of negative imageof fossil-based raw materials

Opportunity

Intensiﬁcation of
weather-related disasters due
to rising temperatures

Water shortage

MIRAFOAM、MIRAFOAM Λ

Expansion of the market for recycled products

ARPRO RE、ARPRO RE OCEAN、
ARPRO REvolution

Increased demand for lightweight components due toexpansion of the EV market

P-BLOCK、P-BLOCK LC

Increased demand for bio-based products

MIRABLOCK-Bio、LACTIF

Increased demand for energy-saving construction and work withshortened construction periods in eﬃcient and hub-connected cities

J-WALLBLOCK
Foam-support construction method
Triple layer cushioning structure
STYRODIABLOCKJSP Corporate Report 2023

Key response

Increased impact onplant operation

・Develop BCP・Insurance against weather-related damage
・Develop disaster prevention measures such as
ﬂood defense walls

Increased impact ontransportation

Diversify recycled raw materials supplier

Increased impact onplant operation

Enhance development of manufacturingmethods with water circulation and lower
water consumption

Opportunity
Increased demand for construction and civilengineering for recovery from damage due toweather-related disaster
Increased demand for civil engineering reinforcementand durable life extension to strengthen disasterprevention

Opportunity productIncreased demand for products that contribute to energy savings in housing

Impact assessment

25 Sustainability

Opportunity product

J-WALLBLOCK
Triple layer cushioning structure
STYRODIABLOCK

Environmental Activities
Information Disclosures Based on TCFD Recommendations
Indicators and Targets

Risks related to the Environment, Safety, etc.

JSP has drawn up a roadmap to reduce GHG emissions andachieve carbon neutrality by ﬁscal 2050. To achieve the targets,
we are going to set non-consolidated JSP s GHG emissions at
Scope 1 and Scope 2 as a KPI, and promote related initiatives.
These will include the installation of renewable energy facilities(such as for solar power generation), the purchase ofrenewable energy, and further conservation of energy.

Indicators and Targets

Targets on
GHG emission reductions

FY2030GHG emissions in
Scope 1 and Scope 2
for JSP Corporation
30% reduction

Net zero（compared to FY2013）

Roadmap for GHG emission reductions (FY2013 is taken as 100)
16.1%
reduction

21.6％
reduction

17.5％
reduction

0.2％
16.1％

21.4％

21.5%
reduction

0.2％
17.3％

30％
reduction
0.2％
0.1％

4％
4％

21.2％

Plastic has become a global social issue
as it becomes marine waste due toimproper disposal. With the focus on the
Paris Agreement, SDGs and ESG issues,
there is a movement toward plastic
recycling, conversion to other materials
and plastic-free products. Particularly inEurope, the circular economy movement
is advancing and we expect the movementof pursuing resource recycling to accelerate in the future. Inadequate or delayed
responses to these trends could have an
impact on our business.

100％

78.4％

82.5％

The JSP Group has many manufacturing
plants globally and there is a possibility ofaccidents and industrial accidents at plants,
accidents in external warehouses and in
product transportation, and damage to
production facilities due to natural disasters.
With regard to earthquake disasters which
are expected to have the greatest impact
among natural disasters, our Yokkaichi plantand other facilities could be aﬀected by amassive Nankai Trough earthquake, which isconsidered to have a high probability ofoccurring and could suﬀer signiﬁcant damage.

78.5%
70％

To virtuallyzero emission
FY20132020
2019■ GHG emission

The JSP Group ensures the safety of
production aiming for no accidents, nodisasters, and stable supply. In addition,
to deal with natural disasters such as
earthquakes, heavy rains, and ﬂoods, the JSP
Group prepares disaster countermeasure
manual and business continuity plan
(BCP), operates an employee safety
conﬁrmation system, and conducts
disaster drills.

(2) Environmental issues with plastics

22％

83.9％

Main response of JSP(1) Natural disasters and accidents
FY2050Assumptions of the Roadmap●Scope: GHG emissions of non-consolidated JSP at Scope 1 and Scope 2●GHG reduction target: Calculated based on the Act on the Rationalization etc. of Energy Use.

Base year

Main contents of risks and opportunities

2022
2030 (Target)
2050
2021
■ Energy conservation activities■ Purchase of renewable energy■ Installation of renewable energy facilities (solar power generation)

JSP Corporate Report 2023

26 Sustainability

The JSP Group recognizes that theenvironmental issue of plastics is one of theimportant issues (materiality) to beaddressed and is actively promoting eﬀorts
to contribute to society throughenvironmentally friendly products, as well as
initiatives such as material and thermal
recycling of plastics, and use of recycledmaterials.
In December 2021, the JSP Groupdeclared to support the recommendationsof the Task Force on Climate-related
Financial Disclosures (TCFD). Throughscenario analysis, we will reduce the risks
posed by climate change and promotestrategies that are in line with the Groupʼsbusiness operations so that risks can beturned into business opportunities.

Social Activities
Communication with Stakeholders
The JSP Group recognizes the importance of building mutual trust through dialogue with all stakeholders, including customers. We strive to understand the issues that the society faces based on the opinions
and evaluations received through engagement with customers, business partners, shareholders and investors, dialogue with local communities and governments and communication with employees and job
applicants. Through various media we disclose suﬃcient information to all stakeholders at an appropriate time by providing shareholder/investor information and various news releases. Through communication with a wide range of stakeholders, we aim to be a company that is trusted by society.

Stakeholders

Objective

Actions
Direct support throughproduct sales

Customers

To build long-term
relationships with ourcustomers by listening totheir opinions andproviding products andservices that meet theirneeds.

Suppliers

To promote sustainableprocurement throughour business partners.

Frequency

Inquiries
Customer satisfaction
survey based on
ISO9001

1/yearDirect support throughproduct purchasing

Daily

As needed

Financial Results Brieﬁng

2/yearIR individual coverage

As needed

Information disclosurein accordance withlaws, regulations andstock exchange rules

As needed

Reports for shareholder
communication

2/yearInformation provisionon the website andpublication of various
reports

Frequency
As needed

Community &Government

Factory tours

As needed

Participation incommunity events

As needed

Training by job level

As needed

Interviews forobjective management

2/yearCompany newsletter

4/year1/yearInquiries

Shareholders &Investors

Actions
Various community
contribution activities

As needed

General Meeting of
Shareholders

To enhance our corporate
value through sustainablegrowth by disclosing fair
information to meet the
expectations of ourshareholders andinvestors.

Objective
To interact with the local
community and contributeto the development of theregion through participation
in local events andcommunity involvement.

Daily
As needed

Inquiries

Stakeholders

Employees

As needed
Job Seekers

JSP Corporate Report 2023

27 Sustainability

To develop humanresources and create awork environment inwhich each employee candemonstrate their fullpotential. To maintain thehealth of our employees
and respect their diversity.

To secure excellent
human resources, achievesustainable growth, andincrease corporate value
by disclosing informationand holding information
sessions for those whowish to join our company.

Intranet operation

Daily

Whistleblowing

As needed

Brieﬁngs on personnelrelated systems, includingsalaries and bonuses,
and meetings to
exchange opinions

1/year

Health and Safety
Committee

1/monthHead Oﬃce HealthCommittee

1/monthInformation provisionon the website

As needed

Company information
sessions and recruitment
guidance

As neededSocial Activities
Partnership Building Declaration

Quality Assurance
Quality Policy
・We create products that meet the needs of our customers and contribute to the sustainable
development of our customers and society.
・We continuously improve the quality management system.

In December 2022, JSP announced our Partnership Building Declaration in support of the purpose of the
Future Partnership Building Promotion Council promoted by the Cabinet Oﬃce and the Small and Medium
Enterprise Agency. As we work towards building new partnerships, we pledge to collaborate and coexist in
mutual prosperity with all business partners in the supply chain and those who seek value creation.
JSP has speciﬁed the following individual items in conjunction with the Declaration.

<Individual Items>●We will actively utilize open innovation and work to create new businesses.
●We agree with the purpose of the White Logistics promotion campaign and strive to build
appropriate relationships with our business partners.
●We published the JSP Group Basic Procurement Policy and strive to conduct transactions that do
not involve personal interests based on fair, equitable, and free competition.

Procurement
Basic approach to procurement operations
While economic development is driven by globalization, environmental issues such as climatechange are causing various impacts on the planet, animals and plants, including on our own
lives. In addition, the increasing importance of addressing social problems, including humanrights issues, in the globalized corporate supply chain requires companies to be more committed
to what is ethically right than the law requires. Based on our corporate philosophy of Creatively
and Actively Contribute to Society , we contribute towards the realization of a sustainable
society not only by providing environmentally and socially friendly products, but also by giving
due consideration to the environment and society through our global procurement activities.
As part of this, the JSP Group Basic Procurement Policy has been established as follows to
promote sustainable procurement activities throughout the supply chain.

Voluntary Action Declaration for White Logistics Promotion Campaign
JSP Group Basic Procurement Policy１．
We will conduct transactions based on fair, equitable and free competition, open to
domestic and foreign suppliers, and with transparent procedures.
２．
In our procurement activities, we will comply with the laws, regulations, social norms ofeach region and country.
３．
We will conduct optimal procurement activities based on economically rational methods andstrive to build and maintain sound business relationships with suppliers with the aim of mutual
development.
４．
We will strive to implement procurement activities that put customer satisfaction ﬁrst.
５．
In selecting suppliers, we will take the followings as important points, and will also
consider their sustainability activities.

In December 2022, we submitted a Voluntary Action Declaration in support of the White Logistics
promotion campaign advocated by the Ministry of Land, Infrastructure, Transport and Tourism, theMinistry of Economy, Trade and Industry, and the Ministry of Agriculture, Forestry and Fisheries. We
recognize that securing a sustainable and stable supply of logistics necessary for business activities isa management issue. Aiming to realize highly productive logistics and work style reforms, we will
foster mutual understanding with business partners, logistics companies, and other stakeholders.
Based on these eﬀorts, we are working to improve logistics.

（１）
Respect human rights and eliminate discrimination. Not complicit in human rights abuses.
（２）
Apply fair labor conditions, maintain safe workplace environment and eliminate forced labor and child labor.
（３）
Recognize environmental issues and work to resolve and address them.
（４）
Have a stable management base and appropriate levels of quality, price, and delivery time, and make eﬀorts tomaintain and improve them.
（５）Comply with laws, regulations, and social norms.

JSP Corporate Report 2023

28 Sustainability

Social Activities
Approach and Activities on Human Capital
The JSP Group regards human capital as a source for thecreation of economic and social value. As indicated in ourmanagement policy Deliver with WOW! , Be excited in ourwork will become a creative force for action, and by
fulﬁlling Inspire customers and consumers and Deliver
satisfaction to shareholders and the community , we aim to
be A Global Company for Global Society , which is ourlong-term vision, VISION 2027, and realize our corporate
philosophy Creatively and Actively Contribute to Society .
List of Indicators and Targets Related to Human Capital➡ https://www.co-jsp.co.jp/english/sustainability/s/s̲humancapital.html

Employee Assistance Program

Diversity
JSP promotes diversity and inclusion, aiming for a workplace where
employees respect each other and are assured of psychologicalsafety so that they can continue to play active roles.

Promotion of Women s Participation and Advancementin the Workplace※
Promoting Active Participation of Senior Human Resources*
Facilitation for the Employment of
Persons with Disabilities**Please refer to the following URL.
➡ https://www.co-jsp.co.jp/english/sustainability/s/s̲diversity.html

Human Resource Development
Strategy
The JSP Group s human resources policy is to promote diversity in humanresources. On a non-consolidated basis, we are working to promotewomen to management positions, with the target of achieving 10%
women in management positions for JSP Corporation by FY2025. In
addition, Area Career-track Work System was introduced in FY2021 torealize both the wishes of employees who want to work locally and the
pursuit of diversity in the human resources who will lead the company inthe future with the aim of converting general staﬀ to career-track staﬀ. We
have long been actively working on the employment of people withdisabilities, particularly in Group companies in Japan. We are also working
to further strengthen mid-career recruitment in the highly specialized
areas. Furthermore, as part of our human resources development policy,
we promote human resources development and run training system
actively. We provide a range of training programs such as induction
training for new graduates and mid-career recruitment and training early
career staﬀ and training for senior staﬀ. As we believe that managersʼ
self-innovation is essential for a diverse people to work with excitement
and play active roles, a range of training programs are oﬀered including
training for new managers and management skills development training
for middle and senior managers.
As a part of company environment development policy, the JSP Grouppursues the organizational culture in which each employee feels a senseof fulﬁlment in work in order to Be excited in our work . We haveintroduced a self-assessment system to enable employees to broaden
their scope of activities, and we strive to improve engagement by
allocating personnel in consideration of their own career paths. We arealso working to improve the rate of men taking paternity leave, with theaim of making it easier for them to balance work and childcare. In
addition, as a part of eﬀorts to ensure the health and safety of ouremployees, we are committed to workplace health and safety, occupational safety at the plants and mental health care for our employees.

JSP will work to strengthen recruitment and human resource
development for business creation and provide opportunities formutual growth between the company and employees.
List of training by job rank in FY2022➡ https://www.co-jsp.co.jp/english/sustainability/s/s̲training.html

Career Support
Self-assessment System
This system allows employees to report their future career
aspirations and daily feelings to the company and is an opportunity
to communicate their opinions and aspirations to the company inorder to improve openness and unify intentions within the company.

Support for Acquisition of Qualiﬁcation Necessary
for Operations
JSP supports the acquisition of qualiﬁcations necessary for operations,
including the cost of acquiring qualiﬁcations and the payment ofqualiﬁcation allowances to those registered for oﬃcial qualiﬁcations.

Work Life Balance
We believe that maintaining physical and mental health isfundamental for each employee to work with excitement andmotivation. JSP is making various improvements to the work
environment.
➡ https://www.co-jsp.co.jp/english/sustainability/s/s̲work.html

Regular Health Check

JSP carries out health check-ups every year and those with ﬁndings arerecommended to undergo re-examination or a full medical check-up. A
follow-up is conducted through interviews with occupational physicians.

JSP Corporate Report 2023

29 Sustainability

JSP carries out stress checks via the internet every year and various
follow-ups are conducted based on the results. This content covers not only
consultations regarding health and careers but also a wide range of mental
health issues, and we have built a system whereby employees can easily
seek advice to help them achieve a better mental and physical balance.

Flex-time System

JSP has introduced a ﬂextime system to accommodate each
employee s personal circumstances and to enable them to exercise
their abilities in the workplace, depending on their duties. By
allowing employees to work ﬂexibly outside of their core work
hours, employees are able to improve work eﬃciency and diversify
their working styles. Active use of the system also helps to reduce
overtime work and promote health and wellness.

Controlling Long Working Hours

JSP sets its own standards for overtime hours per month, which
are stricter than the upper limit of working hours under the Act
on the Establishment of Relevant Laws to Promote Workplace
Reform in Japan. If any employee exceeds the overtime hours, thePersonnel Aﬀairs Department sends a reminder to the employee
through the person in charge of the department. The person in
charge and the employee work together to control long working
hours and strive to comply with our standards.

Childcare Leave and Nursing Care Leave

To enable employees to balance work and family life, JSP oﬀers
maternity leave, childcare leave, nursing care leave systems, as well
as shorter working hours for childcare and nursing care. In particular,
to create an environment that makes it easier for employees toreturn to work after childcare leave and to help them cope withchanges in their new working environment, we allow employees totake “childcare leave for familiarization within one month from thedate the child starts daycare.

Promotion of Taking Paid Leave

JSP is actively promoting the acquisition of paid leave for the purpose of
improving the physical and mental health and motivation of employees
and improving labor productivity. Employees are granted between 3 and12 days in their ﬁrst year of employment, depending on when they join
the company, and up to 20 days in their second and subsequent years,
depending on the length of service. In addition, up to 30 days can beaccumulated in addition to paid leave in case medical treatment isrequired due to illness or injury.

Area Career-track Work System

This is a system for career-track employees who are not subject torelocation. By converting positions from technical or general staﬀ to areacareer-track positions, employees can expand the scope of the job andmeet the needs of diverse work schedules, such as changing lifestyle stages.

Social Activities
Social Contribution Activities
1. Received a letter of appreciation from the Japanese
Red Cross Society Tochigi Branch for cooperationin blood donation activities at JSP plants

2. Providing tableware to a children s cafeteria

3. Yokkaichi No.1 Plant and Yokkaichi Research Center
received a letter of appreciation for
donating emergency foodEvery year, JSP participates in blood donation activities by the Japanese
Red Cross Society. In 2022, we cooperated in blood donation activities atthe Hokkaido Plant and Kanuma Plants. Prior to starting activities, we held
activities in our oﬃces to encourage cooperation and raise awareness forblood donation. The number of participants is increasing every year. The
Kanuma Plants received a letter of appreciation from Tochigi Branch of theJapanese Red Cross Society for Blood Donation Merit Award 2022 at the
Tochigi Prefectural Hall on July 25, 2022.
This letter of appreciation is presented to companies, organizations, andindividuals that cooperate with the activities of the Japanese Red Cross
Society. The Kanuma Plants long history of cooperation in blood donation
activities and implementation of activities during the COVID-19 pandemic
were highly evaluated. We will continue to cooperate in blood donation
activities as part of our social contribution activities in order to realize ourcorporate philosophy "Creatively and Actively Contribute to Society."

In April and July 2022, JSP Packaging Corporation, a Group company that
manufactures and sells food containers, provided food containers for use at
Kodomo Shokudo Machi no Gohanya san (a children s cafeteriaorganization). This organization provides food support to needy households
such as households on child rearing allowances and welfare households inKonosu City, Saitama Prefecture.
These activities are operated by the NPO Niko Niko mama s. The
activities are held at a cafeteria in Konosu City, and are open toparticipation by anyone. The cafeteria serves local children and theirguardians so that they can enjoy meals while interacting with others. The
activities also include dietary education by a registered dietician forconveying the importance of food. A total of about 300 people participatedin two events in which JSP Packaging provided food containers.

The Yokkaichi No.1 Plant and the Yokkaichi Research Centerin Mie Prefecture stockpile emergency food in preparation for
emergencies. As part of activities, we sequentially replace
emergency food which is nearing its expiration date, and we
donate emergency food that is close to the expiration date.
By selecting donation recipients using matching software
operated by Mie Prefecture, we were able to deliver
emergency food to a wide range of people, includingchildren s cafeterias, support for the needy, and volunteer
activities. In October 2022, we received a letter of appreciationfrom Mie Prefecture for these activities.

4. Donated 100,000 sheets of paper to support French schools
In December 2022, JSP International S.A.R.L., a Group company in France, donated 100,000 sheets of paper
to support schools in Estrées-Saint-Denis, with the aim of promoting the growth and education of children.
This meaningful donation not only contributes to the local community, but also provides an excellent
opportunity for an experience of Deliver with WOW! through eﬀective learning opportunities for children.
JSP International S.A.R.L. also received a message of gratitude from the mayor of Lucette. This message wasintroduced in the local newspaper.
Afterwards, we received letters of thanks from the children. The letters are now displayed in the plantoﬃce.

JSP Corporate Report 2023

5. Status of main activities
Number of
projects

Cost(thousand yen)Social welfare

540

Provision of food containers, campaign to collect bottle
caps for use as proceeds to provide vaccines, etc.

Education/social education

9744

Accepting interns and sponsoring educational events

Environment

1

1,680

Participating in environment-related exhibitions

Community activities

15

1,539

Volunteering for blood donations, holding ofcommunity cleanup activities

Disaster relief

1100

Holding donation activities for ﬁre victims

Others1

10

Holding donation activities for the Japanese Red
Cross Society

Classiﬁcation

30 Sustainability

Main contentsCorporate Governance As of July 3, 2023
Basic Information on Corporate Governance Structure

Basic Philosophy on Corporate Governance
Based on the recognition that the most important management issue is to continue sustainable businessgrowth and increase corporate value, JSP has adopted the corporate philosophy of Creatively and Actively
Contribute to Society, and aims for the management to earn the trust and satisfaction of all stakeholders asa globally competitive company that places emphasis on safety and environmental responsiveness.
JSP believes that eﬀective functioning of corporate governance and thorough pursuit of management
eﬃciency, transparency, and soundness are essential issues to achieve this objective.

Basic Policy(1) The Company has adopted a Company with an Audit & Supervisory Board system where theBoard of Directors makes decisions on the most important matters of the Company and strives
to create an environment for appropriate management judgment in such decision-making.
(2) The Company shall respect the rights and positions of all stakeholders and strive to cooperatewith them appropriately.
(3) The Company shall strive to ensure transparency to all stakeholders through appropriate
information disclosure.
(4) As a Company with an Audit & Supervisory Board , the Company shall appoint independent outside directors
and auditors and ensure sound management practices by monitoring management in line with the Company.
(5) The Company shall engage in constructive dialogue with shareholders.

Organizational form

Company with an Audit & Supervisory Board

Composition of the Board of Directors
Term of oﬃce for the Board of Directors
Chair of the Board of Directors
Voluntary Advisory Board

12 including 4 Outside Directors
1 yearPresident & Representative Director
Nomination Advisory Board, Remuneration Advisory Board,Special Committee on Governance, 5 members (4 Outside Directors,
President & Representative Director)

Composition of the Audit & Supervisory Board

4 including 2 Outside Audit & Supervisory Board members

Number of independent oﬃcers

6

Business execution system
Management Committee

Executive oﬃcer system
12 members (President & Representative Director,
2 Executive Vice Presidents, 9 Senior Executive Oﬃcers)
20 members (Representative Director and President, 19 Executive Oﬃcers)

Executive Oﬃcers Meeting

Skills Matrix

Name

Corporate Governance Structure

Yasuo Oikawa

Consult
Selection andRemoval Supervision

ReportDirective and Supervision
Executive Oﬃcers
Meeting

Business
Administrative
Divisions
Divisions
Cooperation
Group companies
Outside Director

Audit

Cooperation

ReportPresident & Representative Director

Director

Audit

Nomination Advisory Board
Remuneration Advisory Board
Special Committee on GovernanceConsult

Management
Committee

Kosuke UchidaAppointment/Dismissal

Board of Directors
12 Directors

ReportReportInternal Audit
Department
Audit

ReportRisk and Compliance
Committee

Guidance and Supervision
Report*As a whistleblower system, JSP has set up an external contact point for reporting.

Audit & Supervisory Board member

Yasushi Komori
Director

Yoshikazu ShimaTomoyuki Kiura
Yoshihisa Ishihara
Hisashi Shinozuka

Outside Independent

Takayuki Ikeda

Outside Independent

Kiyoshi Itou

Outside Independent

Ryoko Sugiyama

Outside Independent

Audit & Makoto Ogawa
Supervi- Yoshiaki Sawada
Outside Independentsory
HidekiHonda
Board
member Yoshiyuki Kawakami Outside Independent
Up to four areas of expectation for each person are listed.
The above list does not represent all the knowledge and experience possessed by each person.
Reference: Please see the our website for details regarding corporate governance.
➡ https://www.co-jsp.co.jp/english/sustainability/g/g̲basic.html

Outside Audit & Supervisory Board member

JSP Corporate Report 2023

Production
Technology& Quality
Control

Koichi Wakabayashi

General Meeting of Shareholders

Appointment/Dismissal
ReportAccounting
Audit & Supervisory
AuditorCooperation
Board
Audit
4 Audit & Supervisory
Board members

R&D

Tomohiko Okubo

JSP has adopted the above Corporate Governance System based on our judgment that it is optimalfor maintaining and improving the eﬃciency, transparency, and soundness of management, taking
into consideration the Companyʼs overall corporate size and other factors.
Appointment/Dismissal

ESG
Personnel
Business
Aﬀairs &Administra- Business (EnvironFinance & Development,
StrategytionSociety, Accounting
ment&& Globalof HumanManage- Marketing Governance)
Resourcesment

31 Sustainability

Corporate Governance
Activities of Major Meeting Bodies and Advisory Committees
Board of Directors
Meetings of the Board of Directors are chaired by President & Representative Director Tomohiko
Okubo. The board consists of 12 Directors, including 4 Outside Directors. Meetings are also attended
by 4 Audit & Supervisory Board members, including 2 Outside Audit & Supervisory Board members. In
principle, the board meets once a month to deliberate and make decisions on matters stipulated inlaws, regulations, and the Articles of Incorporation, and as well as on important management matters.
The board also supervises the Company s overall business and management.
In order to have thorough discussions at the Board of Directors, outside oﬃcers are provided withmaterials regarding the background, purpose, and content of proposals prior to meetings of the Board of
Directors. Also, as necessary, suﬃcient explanations are provided by persons making proposals.

Audit & Supervisory Board
Audit & Supervisory Board members attend meetings of the Board of Directors and other importantinternal meetings, exchange opinions with the Representative Director, conduct interviews with theemployees in charge of each business, investigate major oﬃces and subsidiaries, and engage in otheractivities to audit the legality and validity of the Group s operations. Audit & Supervisory Board
members also exchange opinions periodically and as necessary with accounting auditors and theInternal Audit Department in an eﬀort to strengthen mutual cooperation.

Nomination Advisory Board

Management Committee
The Management Committee is chaired by President & Representative Director Tomohiko Okubo. The
committee is composed of 2 Executive Vice Presidents and 9 Senior Executive Oﬃcers. 2 full-time Audit& Supervisory Board members also attend meetings of the committee. In principle, committee meetings
were held once a month to discuss basic management policies, measures to improve corporate
structure, and other important management matters. In particular, during the current ﬁscal year, thecommittee deliberated on the progress of the medium-term business plan and future challenges.

Executive Oﬃcers Meeting
The Executive Oﬃcers Meeting is chaired by President & Representative Director Tomohiko Okubo
and is composed of 19 Executive Oﬃcers. 2 full-time Audit & Supervisory Board members also attend
the meetings. In principle, the meeting was held twice a month to discuss important management
matters and execute business operations based on quick judgments that accurately reﬂect changes
in the business environment. Additionally, the meeting monitored the planning, drafting, and progressof the Company s sustainability management.

Risk and Compliance Committee
The Risk and Compliance Committee is chaired by the General Manager of the General & Personnel
Aﬀairs Division. In principle, the committee meets once a month. The committee manages compliance and risks across the Group, and serves as a support function for management decisions toensure that the Board of Directors takes appropriate risks. 2 full-time Audit & Supervisory Board
members also attend committee meetings.

The Nomination Advisory Board is chaired by the lead Outside Director, Hisashi Shinozuka. The board
is composed of 5 people, including 4 Outside Directors and the President & Representative Director.
When selecting candidates for Directors and Audit & Supervisory Board members, in response to
consultation from the Representative Director, the Nomination Advisory Board selected candidates
who are appropriate for the position and have the necessary experience, knowledge, and abilities tocreate medium-to long-term corporate value. The board deliberated if candidates were qualiﬁed to
fulﬁll their responsibilities in light of the selection criteria and skill matrix, and submitted a report the
President & Representative Director.

Remuneration Advisory Board
The Remuneration Advisory Board is chaired by the lead Outside Director, Hisashi Shinozuka. The board iscomposed of 5 people, including 4 Outside Directors and the President & Representative Director. In regard to
remuneration for each Director, in response to consultation from the Representative Director, the board
comprehensively considered factors such as the business environment, business conditions, business results,
ﬁnancial situation, and each Director s contribution, etc., and reported to the President & Representative Director.

Special Committee on Governance
The Special Committee on Governance is composed of 3 or more independent Outside Directors. By
ensuring fairness, transparency, and objectivity in transactions between the Company and its parent
company group, the Company aims to appropriately protect the interests of minority shareholders andenhance corporate governance. In response to inquiries from the Board of Directors, the Company
deliberated on transactions with the parent company group and provided a report.

JSP Corporate Report 2023

32 Sustainability

Corporate GovernanceEvaluation on Eﬀectiveness of the Board of Directors
JSP conducts an annual questionnaire to Directors and Audit & Supervisory Board members for assessing
the eﬀectiveness of the Board of Directors. The Board of Directors analyzes and evaluates the results of
the questionnaires and the opinions of the independent Outside Directors and Outside Audit & Supervisory Board members with respect thereto. (Article 26 of the Corporate Governance Guidelines)
When evaluating the eﬀectiveness of the Board of Directors in ﬁscal 2022, we conducted a survey of
all Directors and Audit & Supervisory Board members in March 2023. We then discussed the results at
the Board of Directors meeting held in June 2023.
For a summary of the most recent evaluation of the eﬀectiveness of the Board of Directors, pleaserefer to the Corporate Governance Report, [Supplemental Principle 4-11-3 Analysis and Evaluation of
the Overall Eﬀectiveness of the Board of Directors].
https://www.co-jsp.co.jp/sustainability/g/g̲system.html(Japanese only)

Training for Directors and Audit & Supervisory Board Members
The Company has established a training policy for Directors and Audit & Supervisory Board members toprovide them with ongoing opportunities to acquire the knowledge necessary to perform their duties.
(Article 28 of the Corporate Governance Guidelines)

Training Policy for Directors and Audit & Supervisory Board Members
1. When a Director or Audit & Supervisory Board member is newly appointed, information necessary for the
execution of duties by the oﬃcer shall be provided as appropriate through lectures and training by outside experts.
After assuming oﬃce, training on management issues and legal revisions shall be provided on an ongoing basis.
2. When an independent Outside Director or Outside Audit & Supervisory Board member is newly appointed, the person
shall be encouraged to understand the Companyʼs management philosophy and corporate culture and shall be
provided with an inspection tour of major business locations and an explanation of business activities. After assuming
oﬃce, the Company shall continue to provide information on management issues and other matters as appropriate.
3. For the business plan and annual budget policy, an annual policy meeting will be held every ﬁscal
year to provide an opportunity to share information throughout the company.

Information Provision and Support System for
Directors and Audit & Supervisory Board Members
The Company shall establish a support system to ensure that Directors and Audit & Supervisory Board
members have access to the information necessary to eﬀectively fulﬁll their roles and responsibilities.
(Article 27 of the Corporate Governance Guidelines)
1. The secretariat of the Board of Directors shall collect and provide information as necessary for Directors and Audit& Supervisory Board members to perform their duties.
2. Audit & Supervisory Board members may request the appointment of employees to assist them in their audit duties, andwhen such employees assist them in their audit duties, shall not be subject to the direction and orders of Directors, etc.

Remuneration
Remuneration for directors (excluding part-time directors) is conﬁgured as base compensation andreserve-type remuneration to be paid upon retirement.
Base compensation comprises ﬁxed compensation, short-term performance-linked compensation, and executive

JSP Corporate Report 2023

shareholder association-contributed compensation. Among the base compensation, ﬁxed compensation and executive
shareholder association contributed compensation are determined according to the responsibilities of each position.
The compensation for part-time directors and Audit & Supervisory Board members comprises ﬁxed
compensation in the form of base compensation.
The President & Representative Director, authorized by the Board of Directors, prepares the proposed
amount of remuneration for each director for the current ﬁscal year within the remuneration limit resolved
at the General Meeting of Shareholders, in accordance with the Companyʼs Executive Remuneration
Regulations, taking into consideration the business environment, operating conditions, performance,
ﬁnancial condition, each individualʼs contribution and other factors. The President & Representative Director
consults the Remuneration Advisory Board, which is composed of the Representative Director and theOutside Directors and chaired by the top Outside Director, on the proposed amount of compensation.
The Remuneration Advisory Board then reports to the President & Representative Director on the proposed amountof remuneration discussed. The President & Representative Director determines the amount of remuneration for eachdirector based on the report of the Remuneration Advisory Board. The remuneration for each Audit & Supervisory
Board member is determined by consultation among the Audit & Supervisory Board members within the remuneration
limit resolved at the General Meeting of Shareholders, taking into consideration the contribution of each individual.
Please refer to the following for matters regarding performance-linked compensation.
1. Details of performance indicators selected as the basis for calculating the amount of perfor
mance-linked remuneration, etc.
Performance-linked compensation consists of short-term performance-linked compensation as part of baseremuneration and midterm performance-linked compensation as part of reserve-type remuneration to be paid
upon retirement. For both types of remuneration, performance indicators (consolidated net sales, consolidated
operating income, consolidated operating margin, and net income attributable to shareholders of the parent
company) determined by the Board of Directors are used as the basis for calculating the amount of remuneration.
2. Reason for selection of the relevant performance indicators
The reason for selecting these indicators is that they are important management indicators showing
the growth potential and proﬁtability of the Company.
3. Method of calculating the amount of performance-linked compensation, etc.
Short-term performance-linked compensation is determined by the performance ratio during the subject
period against the base value of the above performance indicators determined by the Board of Directors.
The reserve-type remuneration to be paid upon retirement is determined as a midterm performance-linked
compensation by calculating the cumulative amount of performance indicators for the relevant consolidated
medium-term business plan period at the end of the ﬁscal year as a percentage of the performanceindicators achieved during the same period of the previous consolidated medium-term business plan.

Director and Audit & Supervisory Board member remuneration totals for ﬁscal 2022

Position

Total amount of remuneration by type (Millions of yen)
Total
Base compensation
remuneraReserve-type
Executivetion
remuneration
Short-term
Fixedshareholder(Millions of
to be paid uponcompensa- performance-linked
association-contributyen)
retirementcompensationtion
ed compensation

Number of
eligibleoﬃcers(people)Directors(excluding Outside Directors)

258

209

2

16

30

8

Audit & Supervisory
Board members(excluding Outside Audit &Supervisory Board members)

15

15

-

-

-

2

Outside oﬃcers

56

56

-

-

-

6

33 Sustainability

Corporate GovernanceInternal Control System & Risk Management Structure(3) The Company shall decide important individual management issues related to businessexecution at the Executive Oﬃcers Meeting, which in principle is held twice a month.

Basic Policy on the Development of Internal Control Systems(4) The Company shall formulate management plans on a consolidated basis and provide
management control and guidance to the Group companies in order to realize such plans.
(5) The Group companies shall, in principle, belong to their respective businessdivisions or corporate divisions in terms of organization and their businessexecution shall be under the direct control of the business divisions or corporate
divisions to which they belong.

In accordance with the Companies Act and the Ordinance for Enforcement of the Companies Act, JSP
Corporation has established the following basic policy for the development of internal control systems. We
will review this basic policy as needed and strive to maintain more appropriate internal control systems.

1. System to ensure thatthe execution of duties
by directors andemployees of theCompany and bydirectors and employeesof the Companyʼs
subsidiaries complies
with laws andregulations and the
Articles of Incorporation

２．
System for storage andmanagement of
information related tothe execution of duties
by the Companyʼs
directors(1) The Company shall establish the JSP Group Corporate Action Guidelines and the
JSP Group Code of Conduct common to the Company and its subsidiaries(hereinafter referred to as the Group companies and together with the Company,
the JSP Group ), and shall ensure compliance with laws and regulations andsocial ethics as a prerequisite for its corporate activities and shall thoroughly adapt
to social demands.
(2) The Company shall establish a Risk and Compliance Committee to oversee
compliance across the JSP Group, which shall play a central role in providing
education and training to the oﬃcers and employees of the JSP Group.
(3) Audit & Supervisory Board members and the Internal Audit Department shall work
together to audit the status of compliance of the JSP Group.
(4) For any legally questionable conduct, the Company shall establish a whistleblower
consultation service as a means for the JSP Group executives and employees todirectly provide information, investigate the details, and consider and implement
measures to prevent recurrence.

4. System to ensure theeﬃcient execution ofduties by the Companyʼs
directors and directorsof the Group Companies(1) The Internal Audit Department of the Company shall periodically audit the operationsof the Group companies to ensure the appropriateness of their operations.

6. Matters concerning
employees to assist theCompanyʼs Audit &Supervisory Board
members in theperformance of their duties(1) Audit & Supervisory Board members may request the appointment of employees
to assist them in their audit duties as necessary.

(2) Directors and Audit & Supervisory Board members shall have access to these documents,
etc. at all times in accordance with the Document Management Regulations.
(3) Matters required to be disclosed by law or stock exchange regulations shall bepromptly disclosed in accordance with the Information Disclosure Regulations.

7. System for reporting to
the Companyʼs Audit &Supervisory Board
members(2) The Risk and Compliance Committee shall take the lead in establishing various
rules and regulations for risk management and strengthening the JSP Groupʼs risk
management system.

(2) The Company has adopted an executive oﬃcer system, a division system forbusiness divisions, and a corporate division system for corporate sectors as its
business execution system and is working to improve the eﬃciency of businessexecution by delegating execution authority and performance responsibility.

JSP Corporate Report 2023

(3) The Company shall require the Group companies to obtain prior approval from orreport to the Company on important management matters.

(2) Employees who receive instructions necessary for audit duties from Audit &Supervisory Board members shall not be subject to the direction and orders of
directors, with respect to such instructions. The transfer, evaluation and disciplinary
action, of such employees shall be discussed with the Audit & Supervisory Board.

(2) Audit & Supervisory Board members shall attend meetings of the Board of
Directors and other important meetings of the Company and each Group Company
to collect information on important management matters of the JSP Group.
(3) The Risk and Compliance Committee shall report to the Audit & Supervisory Board
members the status and content of reports received from the oﬃcers and employeesof the JSP Group through the Whistleblowing and Consultation Desk. The method ofreporting (reporter, recipient, and timing of reporting) shall be determined throughconsultation between the directors and the Audit & Supervisory Board members.
(4) Any disadvantageous treatment of a person who reports to the Audit & Supervisory Board members by reason of such report shall be prohibited and all oﬃcers andemployees of the JSP Group shall be informed of such prohibition.

(3) In the event of a disaster or other unforeseen event, the department in charge ofcrisis management shall respond in accordance with the rules and manuals
stipulating emergency responses.
(1) The Board of Directors of the Company shall meet once a month in principle to
make decisions on basic management policies, matters required by laws andregulations, and other important management matters. The Company shall also
hold a Management Committee consisting of representative directors andexecutive oﬃcers at the senior executive oﬃcer level or above to discuss importantmanagement matters in advance.

(2) The Company shall enter into a basic agreement on capital and business alliancewith the parent company to ensure autonomy in the management of theCompany. In addition, the Company shall endeavor to ensure the appropriateness of transactions with the parent company by, for example, maintaining thesame level of terms and conditions as those of transactions between independent parties.

(1) Directors and employees shall report to the Audit & Supervisory Board, in
accordance with the Regulations of the Audit & Supervisory Board, matters thathave a material impact on the JSP Group as well as the status of internal audits
conducted by the JSP Group, in addition to legally required matters.

(1) In accordance with the Document Management Regulations, information related tothe execution of duties by directors shall be recorded and stored in documents orelectromagnetic media (hereinafter referred to as documents, etc. ).

(1) The Risk and Compliance Committee shall be responsible for the overallmanagement of the JSP Groupʼs risks and shall identify and analyze risks.
3. Regulations and othersystems for managing
the risk of loss of the
JSP Group

5. System for reporting to theCompany on matters related
to the execution of duties byDirectors and others of theCompanyʼs subsidiaries andother systems to ensure theappropriateness ofoperations of the corporategroup consisting of theCompany, its parent
company and subsidiaries.

8. Other systems to ensurethat the audits of the
Audit & Supervisory
Board members are
conducted eﬀectively(1) The Audit & Supervisory Board shall provide regular opportunities for individual
hearings with the persons responsible for each business and other relevant personnel.
(2) The Audit & Supervisory Board shall hold regular meetings to exchange opinionswith representative directors and audit ﬁrms, respectively.
(3) The Audit & Supervisory Board shall set aside a certain amount of budget every
year to pay expenses incurred in the performance of their duties.

9. System to ensure reliabilityof ﬁnancial reporting

The JSP Group shall establish a system to ensure the reliability of ﬁnancial reporting,continuously evaluate the system and immediately correct or improve any deﬁciencies.

10. System for eliminating
antisocial forces

As a member of society, the JSP Group shall have no relationship with antisocial forces or groups
that threaten the order and safety of civil society and shall take a ﬁrm stand against them.

34 Sustainability

List of Corporate Officers As of June 29, 2023
Board of Directors, Audit & Supervisory Board Members
Yasushi Komori
Tomohiko Okubo

President &Representative Director

Director, Senior ExecutiveOﬃcer, General Manager
Finance & Accounting
DivisionManager of Accounting
Department

Hisashi Shinozuka
Outside Director

Makoto Ogawa

Audit & Supervisory
Board Member (full-time)

Yoshikazu Shima
Director,
Executive Vice President
Extrusion Business Division

Director,
Senior Executive Oﬃcer
Research & Development
Division, New Business
Development Division

Yasuo Oikawa

Tomoyuki Kiura

Koichi Wakabayashi

Director,
Executive Vice President
Bead Business Division,
Global Business Division

Kosuke UchidaDirector,
Senior Executive Oﬃcer
General &Personnel Aﬀairs Division,
Internal Audit Department

Takayuki Ikeda
Outside Director

Director,
Senior Executive Oﬃcer
Assistant to the President,
Corporate Planning Division

Kiyoshi Itou

Outside Director

Yoshiaki Sawada

Audit & Supervisory
Board Member (full-time)

Hideki Honda

Audit & Supervisory
Board Member (part-time)

Yoshihisa Ishihara

Director, Senior ExecutiveOﬃcer, General Manager
General Technology
Division, Logistics &Purchasing Division

JSP Corporate Report 2023

Yoshiyuki Kawakami
Ryoko Sugiyama
Outside Director

35 Sustainability

Outside member ofAudit & Supervisory
Board (part-time)

List of Corporate Officers As of June 29, 2023
Senior Executive Oﬃcers/Executive Oﬃcers
Responsibilities

Title

Name

Senior Executive Oﬃcer

Shinya Ougi

General Manager of EPS Division

Senior Executive Oﬃcer

Kazuo Monji

General Manager of Industrial Materials

Senior Executive Oﬃcer

Tadao Yabiki

Senior Executive Oﬃcer

Kazutoshi Sasaki

Executive Oﬃcer

Masato Naito

Executive Oﬃcer

Shingo Takahashi

Title

Name

Executive Oﬃcer

Yosuke Takemura

Division

Responsibilities
General Manager of General & Personnel
Aﬀairs Division and Manager of GeneralAﬀairs Department

General Manager of Corporate Planning

General Manager of Research &Executive Oﬃcer

Kazuhiro Nakajima

Development Division

General Manager of Advanced Materials

and Public and Investor Relations Depart-

ment, and Information System Department

Sales Division

Executive Oﬃcer

Atsuo Shimizu

General Manager of New Business

Executive Oﬃcer

Hiroaki Fukui

General Manager of Global Business

Executive Oﬃcer

Takashi Hanne

Development Division

Division, Corporate Planning Department,

Division

General Manager of Yokkaichi Research Center,Research & Development Division

General Manager of Living Materials Division
General Manager of Construction and
Civil Engineering Materials Division
Deputy General Manager of

Global Business Division and Manager ofBusiness Management Department
Director and President of
Executive Oﬃcer

Masaharu Oikawa

JSP Plastics (Shanghai) Co., Ltd.
Director and President of

JSP Advanced Materials (Wuxi) Co., Ltd.
Director and President of

JSP Advanced Materials (Dongguan) Co., Ltd.
Director and President of

JSP Advanced Materials (Wuhan) Co., Ltd.

JSP Corporate Report 2023

36 Sustainability