Bringing Dreams to Life with LightSUSTAINABILITY REPORT 2013
Year ended March 31, 2013

Aim to become a “Light Innovation Company” withand branding in light-related business, able tosatisfy customers’ needs at all times.

Editorial Policy

1) Approach to Materiality*
Dialogue and the exchange of opinions with our stakeholders guided us in narrowing
down the most important social issues confronting corporations and USHIO’s numerous
CSR initiatives. This booklet reports on issues and initiatives that were judged to beof high importance. Other initiatives too numerous to mention are introduced on theGroup’s website.

High

High
Rank C

Importance to stakeholders

In choosing the material for this Sustainability Report 2013, we made an effort to reportin greater depth on the correlation between management and corporate social responsibility (CSR) issues. The report was created mainly for the following stakeholder audience, while emphasizing links with our Annual Report and various other media forcommunicating our corporate activities.

Approach to Materiality at the USHIO Group

Rank B

nc

rta

sic

po

im

f
eo

Rank A

it

tiv

ac

ies

Reporting throughweb and other media

rin

Int

High

* Materiality: Priority of initiatives by comparison of corporate and societal issues.

Importance to USHIO

2

Sustainability Report 2013

Reportingin printed
material

Contents

Today, the world faces global pressure
relating to issues like the environment, thescale of the human population, and the01

USHIO Group Management Philosophy

need for energy. USHIO believes that thepower of light is part of the solution. We

Editorial Policy

are using the technology that the Company
has acquired over decades of operation,

02

Top Message

04

Feature: SHEDDING LIGHT

and our skill at applying and developingthat technology, to provide solutions, inthe hope that USHIO, as well as humanPart 1: The POCT Concept

society, can continue to grow and prosper.

Part 2: What Only Light Can Do

the world’s No. 1 technology
propose solutions that fully

08

USHIO’s CSR

12GovernanceCorporate Governance and Compliance14

PeopleWorking Together with Employees

16

Quality
Relationships with Customers
and Business Partners

19

Environment
Environmental Activities

22

Society
Relationship with Society2) Annual Report• Scope of Report

For information about the USHIO Group’s business activities, please see our Annual Report
2013, and our Group website.

Time period:• Use of Website
We provide more comprehensive and detailed reporting on our
corporate website. Please refer to the USHIO corporate website at
the link shown below for more detail on items marked by the following symbol.
http://www.ushio.co.jp/en/csr/

24

Business Overview

25

Third-Party Opinion

This report basically covers fiscal 2013 (April 1, 2012
to March 31, 2013), but also includes some continuing
activities from before fiscal 2012, and some activities infiscal 2014. Fiscal 2013 and fiscal 2014 are years ended
March 31, 2013 and 2014.
Organizations: All USHIO INC. business sites and Group companies worldwide• The Tri-colored Leaf—A Symbol of the
USHIO Group’s Activities

The Tri-colored Leaf that appears on the cover of this report is designed
to symbolize the three primary colors of light in a budding leaf motif thatsymbolizes the natural environment. At the same time, the design represents
three elements of sustainable management—financial viability (red), social
responsibility (blue), and regard for the environment (green). Our goal is to
grow each of these leaves through steady, daily activities, until they produce
a powerful trunk.

Sustainability Report 201301

Top Message

USHIO aims to continue to grow andprosper together with its stakeholders.
We have stated our vision as being toestablish the USHIO Group as the “Light
Innovation Company” with the world’s No.
1 technology and branding in light-related
business, able to propose solutions thatfully satisfy customers’ needs at all times.
Results of Operations and Future Outlook
First I’d like to report on the Company today in terms of ourbusiness performance for fiscal 2013. Net sales fell 4.4% year
on year to ¥143.4 billion, operating income declined 29.1% to¥7.5 billion, ordinary income was down 19.6% to ¥10.5 billion, and net income decreased 18.2% to ¥7.1 billion. A factor
behind the decline in both sales and earnings was lackluster
sales of optical equipment, while corporate customers in theelectronics sector, our main market, experienced a decline incapacity utilization in their production lines, causing them tocontinue to restrain or delay capital expenditure. Another factor
was a drop in sales of digital cinema projectors.
For the fiscal year ending March 31, 2014, we expect tosee a recovery in capital expenditure and capacity utilization
rates in the electronics field, driven by further expansion in themarkets for smartphones and tablet PCs. In the visual imaging
field, we expect to see growth in general imaging, as well as
steady growth in demand for lamps in step with the penetration of digital cinema projectors. As a result, we are forecasting
increases in both sales and income for the fiscal year ending
March 31, 2014, with net sales of ¥160.0 billion, up 11.5%
year on year, and operating income of ¥12.5 billion, up 64.9%.

Financial Performance(Millions of yen)

2009

Net Sales

Sustainability Report 2013

2011

2012

2013

120,846 119,079 145,125 150,087 143,461

Operating Income

8,963

7,262

14,034

10,696

7,582

Net Income

3,481

7,071

9,577

8,748

7,155

2.3

4.7

6.2

5.6

4.3

Return On Equity (ROE) (%)

02

2010

Progress in Medium-term Planning for CSR

Medium-term Vision and Medical and Science
Business

Fiscal 2013 is the second year of phase-2 of our medium-termplan for CSR, which we formulated in 2009. During phase-1, wesought to examine the optimal form for USHIO’s CSR activities,
while making use of guidelines such as ISO 26000 and the United
Nations Global Compact. These deliberations resulted in ourformulation in 2012 of the CSR Action Plan, which comprises fivepillars. This action plan forms the basis of USHIO’s CSR activities.
Now, during phase-2 of our CSR planning, we are promoting
operations to reflect the CSR Action Plan in the business plans
throughout the Company. As president, I lead the CSR Committee in ensuring that every department has an action planwith detailed and specific numerical targets. Each department
has already brought up a host of measures and plans relating tohuman resource development, customer satisfaction, diversity,
environmentally responsible products, and so forth. Throughthese measures and plans, we will advance USHIO’s CSR initiatives
through our daily business activities themselves. Ultimately we seek
to create a system for connecting our activities to the pursuit of
the USHIO Group’s vision.

USHIO has set out a medium-term vision as a three-year rolling
plan. Our recently announced medium-term plan includes a clear
vision for each segment of the Company, as well as quantitative targets. Our targets for the whole Group for the fiscal year
ending March 31, 2016 are net sales of ¥190.0 billion, and operating income of ¥19.0 billion. We are making a concerted effort
to achieve these targets.
We are also concentrating our efforts in the medical and biotechnology fields, with the intention of developing them as key
areas for the USHIO Group in the long term. Our business scalein these new fields is still small compared with the electronics andimaging field, so we have not set numerical targets for them in our
medium-term vision. Nevertheless, our goal is to be able to reporttheir successful development as growth drivers around the end of
March 2016. We have already made a start in this direction. Last
year in the Sustainability Report we mentioned the excimer lighttherapy device TheraBeam® UV308, and in fiscal 2013 we madefurther progress including the launch of the Point Reader® blood
analyzer. There is an enormous potential market for this device,
and we believe it offers a ray of hope for the many people andhealthcare workers who have difficulty carrying out treatment andtesting due to poverty or other factors.

Fiscal 2014 is the 50th anniversary of USHIO’s foundation. The
USIHO Group is committed to using the manifold power of lightto provide solutions for a global society as a truly global company. I hope you will continue to support us as we strive to meetyour expectations.

September 2013

Shiro Sugata
President and Chief Executive Officer

Net sales

Operating income/Operating income ratio(Billions of yen)(Billions of yen)

200

9.7

20

145.1

150
120.8

150.0

Net income/Return on equity (ROE)(%)(Billions of yen)

(%)

10

20

8

8

15

6.2
143.4

15

7.4

119.0

14.0

5.6

7.1

6.1

100

10.6

10

5.3

8.9

6

10

4.3
9.5

7.5

7.2
50

6

4.7

5

7.1

7.0
4

5

4

8.7
2

2.3
3.4

0

2009

2010

2011

2012

2013

0

2009

2010

2011

2012

2013

Operating income (left scale)Operating income ratio (right scale)

0

0

2009

2010

2011

2012

2013

0

Net income (left scale)
Return on equity (right scale)Sustainability Report 201303

Feature

Shedding Light

Photograph: Hirofumi Makino

Part 1: The POCT Concept
Point of Care Testing (POCT) refers to conducting medical tests quickly on siteat the patient’s location. To some, it might not sound so different from ordinary
testing, but POCT offers a host of important advantages.
“Right There” and “Right Away”
These key concepts distinguish POCT from ordinary testing. Many people take the trouble to visit thehospital when they feel unwell, only to experience the disappointment of being asked to return at
a later date to hear the results of their tests. With POCT, patients can hear the results of their blood
tests or sample analysis right away. POCT is defined as testing conducted by the physician rightbeside the patient, using the advantages of shorter testing time and sense of closeness to the patient
to contribute to swift and appropriate diagnosis, care, disease prevention, and health promotion, andultimately to improving the quality of healthcare, and thereby the patient’s quality of life (QOL).*1
In other words, POCT is a kind of patient-friendly testing that doesn’t require returning to the clinic
at a later date to hear results, or a lengthy wait in the waiting room. Common examples of POCT
tests include the influenza tests conducted at hospitals and home pregnancy test kits.

Qualitative or Quantitative—that is the Question.
Both the influenza tests and pregnancy tests is “qualitative” tests—they are “yes or no” style tests
where the result is expressed as either positive or negative. There are already a wide range of commonly used reagents and testing techniques for test such qualitative test subjects, and even at general hospitals, they can be handled with POCT-style tests.
However, to achieve increased QOL for patients and realize preventative therapies, there is a needfor “quantitative” POCT that can accurately measure the concentration or amount of a certain substance and express it with high precision in numerical terms. Medical equipment manufacturers arecompeting to develop testing equipment and reagents to achieve this goal.

04

Sustainability Report 2013

POCT Enables Patients to Start Therapy Right There, Right Away
Hepatitis B and C are said to be the largest epidemic in Japan today. Hepatitis C is particularly worrisome, since it often leads to sclerosis and then liver cancer when left untreated. Recently there has
been a lot of interest in phlebotomy therapy*2 in the treatment of hepatitis C. To determine whether
this course of treatment is appropriate requires a quantitative test of the patient’s serum ferritin
level*3, as the indicator.
Serum ferritin is commonly excluded as a blood test item during an ordinary health check. As aresult, patients who require testing usually have to visit a major hospital that has the large and expensive equipment able to conduct a quantitative test. This has become an indirect factor preventing thiseffective method of therapy from becoming properly adopted on a wide scale.
In other words, because only a limited number of hospitals can provide the testing and therapy,
many who are known to need it find themselves unable to receive it. Such people may include theelderly, the self-employed, and mothers busy with childrearing.
Furthermore, serum ferritin is also used as a marker for malignant tumors, and is used for diagnosing various cancers, including of the liver, pancreas, lung, and uterus. If there were a device
or reagent at local clinics that could give an immediate test result, more people could be tested,enabling early detection of cancers in some cases. There are high expectations of POCT to provide
such a means of early detection and subsequent treatment of diseases such as those that haveremained hidden until now.

POCT in Developing Countries
The power of POCT goes beyond simply contributing to better QOL in advanced countries; it is also
inherently easy for anyone to use, and delivers stable results at a low price. In developing countries
there is a lack of expensive testing equipment able to perform quantitative tests, making it difficultfor ordinary people to access them. This situation has created a need for simple, low-cost testingwith test items customized to the conditions of each country or region, such as hepatitis C, which is
caused by low standards of hygiene and medical practices, or endemic diseases such as thalassemia.
In response to these challenges, Japan is currently examining options for introducing testing
equipment for POCT to developing countries, such as those in Southeast Asia, as a form of medical
overseas development aid. The spread of POCT equipment will enable treatment and prevention of
diseases through early detection, and help to raise healthcare standards and alleviate the economic
burden. USHIO is contributing to this effort with its proprietary optical and imaging technologies.
*1 From the POCT Guidelines of the Japan Society for Clinical Laboratory Automation (translated into English by the Company)*2 Phlebotomy refers to drawing blood from the body. Generally, this treatment involves drawing out between 200—400
ml of blood every 1—2 weeks in order to lower the serum ferritin level. The treatment can control the advance ofhepatitis caused by excess iron in the body.
*3 Ferritin is a protein that stores iron. Serum ferritin rises and falls reflecting the amount of iron stored in the body.
Quantitative analysis of serum ferritin enables testing and diagnosis prior to phlebotomy therapy for anemia or hyperferremia, leukemia, and hepatitis C, and gives an insight into the state of the disease. Quantitative analysis is therefore
generally in demand.

Sustainability Report 201305

Feature: Shedding Light

Part 2: What Only Light Can Do
In April 2013, USHIO launched Japan’s first* blood analysis device capable ofquantitatively analyzing serum ferritin by immunochromatography, the Point
Reader®, and a dedicated reagent. The device makes use of USHIO’s optical andimaging analysis technologies, developed over many years.
*According to USHIO research as of March 31, 2013

What Is Immunochromatography?
Immunochromatography is a commonly used testing method, found in familiar simple (rapid
diagnostic) test kits such as for influenza and pregnancy tests. The word is taken from “immuno,”
referring to the immune system, and “chromatography,” which means to separate a substance out
into components. For example, in the influenza test, a sample taken from the patient’s nasal cavity
is diluted and several drops of the solution dripped onto a strip ❶. The sample then moves throughthe strip by capillary action ❷ and if the influenza virus (antigen) is present in the sample it forms acompound with a labeled antibody ❸. That compound moves further along the strip and is capturedby an anti-influenza virus antibody on the test line ❹. The compounds emit a color that cannot beseen at the individual compound level, and as the number of captured compounds increases, thecrimson (purplish-red) line acquires enough color to be seen by the human eye, allowing the tester todetermine whether or not the virus is present ❺.

Image of Measurement by Immunochromatography❶A sample is dripped onto a test strip❸The influenza virus (antigen) and labeled
antibody form a compound

Labeled antibody Test line
Anti-influenza antibody
Influenza virus
Other substances❷The sample moves by capillary action❹〜❺The compound is captured by theanti-influenza virus antibody, forming acrimson line.

Japan’s First System for Measuring Serum Ferritin by Immunochromatography

The Point Reader® and Point Strip®

06

Sustainability Report 2013

Traditionally, the downside to the easy-to-use immunochromotagraphy method has been its low levelof precision in making quantitative measurements such as the percentage of a substance within a blood
sample. The method has therefore been limited to tests where it is sufficient simply to show the presenceof infection, such as influenza tests, and other qualitative analysis such as pregnancy or allergy tests.
USHIO’s Point Reader® together with its dedicated reagent, the Point Strip®, are the first system
in Japan to achieve quantitative measurements of serum ferritin using the immunochromatographymethod. The system uses proprietary optical technologies and algorithms to analyze fine changes incolor intensity that depend on the concentration of serum ferritin in a blood sample. This represents a
dramatic leap forward in the analysis capabilities of immunochromatography. The system shows excellent
correspondence in results with those of large-scale automated analysis equipment, and opens the wayfor quantitative analysis of serum ferritin in a clinical setting that has previously been impossible. This
breakthrough will eliminate variation in test accuracy and significantly relieve the burden of testing on
both patients and physicians.

USHIO’s Proprietary Measurement Method
The needs for this kind of accurate on-site testing are multitude, including detection tests for mold,toxins, or harmful additives in food, for virus and bacteria that cause infectious diseases, or for various
biomarkers in the blood.
To meet these needs, USHIO is developing an on-site micro-analysis kit that uses a completely new
proprietary measurement method called Q-body. A version of the device is currently being evaluatedby the Japan Customs analysis division for use as a testing tool for import cargoes to crack down on
drug smuggling.
USHIO will continue to work closely with people on various frontlines, applying its optical technologies
to contribute to peace of mind, safety, and environmental protection for everyone.

Image of Optical Measurement
Low concentration(faint color)
Incidentlight

Reflected
light More

Absorbed
light Less

High concentration(strong color)
Reflected
light Less

Incidentlight

Absorbed
light MoreSince the degree of light absorption changes with the concentration,
the concentration can be quantified by reading the reflected light.

USHIO’s onsite microanalysis kit, currently
being evaluated by the analysis division ofJapan Customs

ColumnMyanmar, also known as Burma, has a land area twice thesize of Japan and a population of some 50 million people.
It has become the focus of global attention in recent years
as it continues to change rapidly into a democratic state.
Despite these encouraging statistics, the per capital GDP in2012 was only 1/60th of Japan’s. The country is striving todevelop various aspects of social infrastructure, and Japanese citizens have been providing medical support there
for some time.
“Myanmar is home to an endemic disease called thalassemia, acongenital condition where the hemoglobin is short-lived.”
Doctor Shigeru Okada, an honorary professor of Okayama
University, explained about Myanmar in 1988, when he became
involved with the work of The Japan International Cooperation
Agency (JICA).
Thalassemia patients suffer from severe anemia, and so require
blood transfusions. However, the transfusions cause excessiveiron levels that resulted in a host of other issues for the patient. In
1988, there was no screening for blood transfusions so 90% of
thalassemia patients carried hepatitis C. As a physician this was
not something that could be overlooked.
In addition, when hepatitis worsens, it progresses to untreatable sclerosis and liver cancer. It was therefore vital to treat
hepatitis patients during the inflammation stage. The excessiveiron level also made the hepatitis even worse.
In 2000, Dr. Okada brought together a group of peripheral
researchers and JICA to encourage the Myanmar Ministry of
Health to take action to make blood transfusions safer. These
efforts bore fruit three years later, and today safe blood transfusions are being provided.

However, Myanmar continues to face the problems of thalassemia, excessive iron levels, and hepatitis. To treat these patients,
it is necessary to ascertain the trends in their iron levels. Dr.
Okada, who has long recognized the need for development of adevice that can easily perform such tests in a clinical setting, firstmet with USHIO three years ago. And now, we have been able todeliver this newest product to Myanmar through the result of our
joint development effort.
“It is vital to be able to measure the slightest change in concentration. This new testing device is going to make a lot of people
very happy I think.” After years of hard work in the medical field
in Myanmar, Dr. Okada, too, is delighted.
*The Point Reader® and Point Strip®

Doctor Shigeru Okada,
Director, NPO Japan-Myanmar Collaboration Projectfor Fostering Medical Human Resources
Honorary Professor, Okayama University

Sustainability Report 201307

USHIO’s CSR

Approach to Corporate Social Responsibility (CSR*)
We consider it natural that a corporate citizen should observe laws and regulations, contribute tosociety, and take steps to protect the environment. These are the foundations of all corporate activity.
In addition, a corporation should build good relationships with its various stakeholders* and advanceby creating and offering new value to contribute to society. This is the kind of corporation that USHIO
is working to become.

Society

Create and provide new value to society
USHIO Group

Build good

Stakeholders

relationships
Compliance*

Glossary
CSR (Corporate Social Responsibility): The responsibility of a company as an entity in global society.
Stakeholders: People who are concerned or affected in some way by the decisions and actions of an organization. Generally described as
people who have a stake in a company.
Compliance: Literally, compliance with laws and regulations. At one point this was all the word was taken to mean, but in recent years it hascome to include observing the rules and norms of society, and contributing to society.

08

Sustainability Report 2013

http://www.ushio.co.jp/en/csrprogram (Toward Realizing a Sustainable Society)

CSR Promotion Framework

United Nations Global Compact’s* Ten Principles

USHIO has established a CSR Committee, which is chaired by thepresident. The committee decides on policies for the whole Company relating to CSR initiatives. The CSR Committee establishes
subcommittees as needed to oversee practical implementationof the policies it has decided, and discusses specific initiatives
and ways to promote them. From 2012, the CSR Committee has
increased the frequency of its meetings as part of our ongoing
voluntary efforts to enhance our systems for promoting more
timely CSR activities.

USHIO has declared its support for the United Nations Global
Compact of principles concerning human rights, labor standards,
the environment and anti-corruption. We have joined the local UN
network supporting the compact, Global Compact Japan Network,and have taken an active role in various sectional activities, including our involvement in co-sponsoring a proposal on supply chain
management as one of the participating companies. We havejoined the local UN network supporting the compact, Global Compact Japan Network, and are working to promote all facets of CSR
among the many other participating companies. To this end, we
have taken an active role in sectional activities for sharing information on necessary specific measures, and enhancing the activities ofeach company.

CSR Promotion Framework
CSR Committee(Chairperson: president)
CSR
Department
Separate subcommittees
for each initiative

UGN*

Group
companies

Business divisions

United Nations Global Compact’s Ten Principles and Our Initiatives
United Nations Global Compact’s Ten Principles
Principle 1

Businesses should support and respect the protection of internationallyproclaimed human rights; andPrinciple 2

make sure that they are not complicit in human rights abuses.

Principle 3

Businesses should uphold the freedom of association and the effective
recognition of the right to collective bargaining;

Principle 4

the elimination of all forms of forced and compulsory labor;

Principle 5

the effective abolition of child labor; andPrinciple 6

the elimination of discrimination in respect of employment and occupation.

Principle 7

Businesses should support a precautionary approach to environmental
challenges;

Principle 8

undertake initiatives to promote greater environmental responsibility; andPrinciple 9

encourage the development and diffusion of environmentally friendly
technologies.

Human
RightsLabor
Standards

Environment

AntiCorruption

USHIO’s Related Initiatives

Principle 1 0

Businesses should work against corruption in all its forms, including
extortion and bribery.

UGN: USHIO Green Network. An organization for promoting environmental action andinformation sharing at USHIO Group sites.
The United Nations Global Compact: This initiative was set up in 1999 by Kofi Annan,
the United Nations secretary general at the time. The Global Compact calls for organizations
to take practical steps to follow ten principles relating to human rights, labor standards, theenvironment and anti-corruption.

The third section of USHIO’s 10 Action Guidelines setsout clear requirements for respecting basic human rights
for all people, and prohibits unfair discrimination, among
other measures.
t Pages 14, 15
The USHIO Group respects the International Labour
Organization’s* Declaration on Fundamental Principles
and Rights at Work. Under the third section of USHIO’s 10
Action Guidelines, the Company strives to promote goodlabor-management relations, abolish discrimination in theworkplace, and create working environments that are
cheerful, safe, and comfortable.
t Pages 14, 15
Section 8 of USHIO’s 10 Action Guidelines clearly states
the Company’s position on actively working to protect theenvironment. We also formulated our 2020 Environmental
Vision and are now working to implement Phase Three of theEnvironmental Action Plan.
t Pages 19, 20, 21
Under section 6 of the 10 Action Guidelines,
USHIO strives to prevent corruption and to
conduct fair business activities. We have also
set up a Compliance Committee and the USHIO
Hotline (internal reporting system).
t Pages 13

The International Labour Organization: Established by the 1919 Treaty of Versailles. As
an international organization, the ILO works in all countries to improve labor conditions andrealize social justice.

Sustainability Report 201309

Medium-term Planning for CSR

the activity infrastructure we built during phase-1 is functioning
effectively. Specifically, under the direction of the president, who isthe chairperson of the CSR Committee, in fiscal 2013 we strenuously promoted these respective CSR initiatives within our business
confines, treating the CSR Action Plan as a guiding principle for
fitting in our five CSR pillars harmoniously with the business planand momentum of each division and department. Each department has already brought up a host of measures and plans relating
to human resource development, customer satisfaction, diversity,
environmentally responsible products, and so forth. Looking ahead,
we will continue our work by implementing this action plan at ourGroup companies.

USHIO established the CSR Department in 2009, and formulated
a medium-term CSR plan aimed at fusing the Company’s management strategies through to 2016 with its CSR tasks. USHIO’s
medium-term CSR planning comprises three phases over a sevenyear period. In phase-1 (2010 to 2012), we focused our efforts on“forming an infrastructure for CSR initiatives” and achieved our
initial targets. We are currently in phase-2 (2013 to 2014) during
which we are working to “dig deeper into CSR issues.”
Reflecting on Phase-1
During phase-1 of our medium-term CSR planning, we worked tocollect information and form an infrastructure for CSR initiatives,
while discovering our vision for CSR at USHIO. We identified the
CSR issues USHIO should take up by conducting awareness surveys
among the management tier and questionnaires with our employees at large and promoting dialogue with NGOs and knowledgeable experts. Through this process, we built an essential activity
infrastructure for executing our CSR initiatives. Specifically, weestablished the CSR Committee, with the president as chairperson,
set up a CSR promotion framework, declared our support for the
10 principles of the UN Global Compact, and announced a CSR
Action Plan.

CSR Action Plan
In formulating the CSR Action Plan, the CSR Committee and otherrelated organizations investigated CSR factors of the USHIO’s
business activities from various angles, while giving consideration
to the 7 core subjects of ISO 26000 and many other sources of
guidance and guidelines. As a result, the Group’s issues were classified under the five pillars of governance, people, quality, society,and environment. These items are then broken down further into
action policies. Currently, this CSR Action Plan serves as USHIO’s
CSR framework, and is the basic foundation underpinning thethinking of each operating division and Group company as theycreate their business plans.

Phase-2
In phase-2, the current phase, we have started off a PDCA cycle
for fusing the actual business operations of our business divisions and Group companies with CSR aspects, by ensuring that

Medium-term Planning for CSR Goals and Roadmap

Phase 2Phase 1

Phase 3

Items to be executedComplete integration ofmanagement strategy with
CSR issues
Dialogue with NGOs and external experts
Internal opinion surveys

Dig deeper into CSR issues
Signed the UN Global Compact
Survey of conflict minerals
CSR Action Plan formulated

TargetForm an infrastructure for CSR initiatives, gather information

Link social issues with management
strategy, clarify the relationship withthe medium-term management plan

Organize social issues and USHIO
management issues and strategies
Develop action plans for each strategy(Reflect the issues in each department’s
business plans)

Determine important issues using in-house opinion surveys anddialogue with experts
Decide upon issues that relate to the five pillars of CSR initiatives

2010

2011

2012

2013

GlossaryISO 26000: A global guideline for initiatives regarding organizational social responsibility
published in October 2011 by the International Organization for Standardization (ISO). The
guideline was drafted through discussions with representatives from government and industry,labor, consumer groups, NGOs and other organizations that began in the early 2000s. Unlike
previous ISO programs, no certification is required.

10

Sustainability Report 2013

2014

2015

2016 (Fiscal year)

Formulation of a CSR Action Plan under the Five Pillars

Governance

Quality

PeopleEstablish a compliance system that encompasses international standards in global
corporate activities, work to publicize CSRrelated information and establish stakeholder communication, and strengthen andenhance the governance framework

Considering workplace environments,
human rights, and diversity of values inhiring and using human resources

Issues

Initiatives to meet the needs ofcustomers, shareholders, and business partners based on observanceof market rules, and regulations

Issues• Promulgation throughout the Company• Internal control*• Global measures• BCP*• Compliance and ethics• Strengthen information security• Fair and impartial business activities• Protecting property rights

Issues• Human rights• Promotion of diversity• Promotion of work-life balance• Health and safety• Human resources

Fiscal 2014 Action Policies• Promotion of risk management• Take steps to promote observance of laws andregulations• Strengthen information security• Protect and make strategic use of intellectual
property• Formulate a business continuity plan

USHIO

• CSR procurement• Quality• Creation of solutions to meet newsocial needs*

Fiscal 2014 Action Policies

Fiscal 2014 Action Policies• Formulate a human resources plan looking three
years into the future (Promote human resources,
employee composition, and diversity to match
future strategies)• Promote work-life balance• Reduce total work hours• Promote health and safety measures• Promote initiatives to increase customer satisfaction
and quality in addition to achieving sales and profit
targets• Strengthen supply chains (Promote CSR and green
procurement)• Formulate an approach for solving social issues
through core business (product and service)
capabilities, and a business promotion plan for Asiaand other emerging markets• Upgrade quality assurance system

Environment
Engage in corporate activities to protect
the environment. Strive to meet both
environmental and business needs,
including addressing global environmental
problems affecting biotopes
Issues• Expanding sales of environmentally conscious
products• Global warming countermeasures• Chemical substance management• Resource conservation — Biodiversity preservation

Society
Engage widely with society at all levels
from local to international, cooperating
and coordinating with other groups incontributing to education, culture,
welfare, development and other aspectsof society
Issues• Social contribution activities

Fiscal 2014 Action Policies

Fiscal 2014 Action Policies• Promote Phase Three of the Environmental
Action Plan
• Contribute to the environment by reducing energy
and resource costs• Comply with environmental laws and regulations;develop products and markets ahead of
regulatory trends• Promote social contribution activities(Communicate with local communities andexplore ways to contribute to the world throughour core businesses)

Internal control: The process of forming rules for conducting business appropriately within an
organization such as a company, and ensuring business is conducted in accordance with theserules. In the wake of incidents of large-scale financial reporting and accounting fraud in the
U.S., compliance has become an important issue worldwide.
BCP (Business Continuity Plan): An abbreviation for Business Continuity Plan, a set of policies and plans for continuing business operations and responding quickly and effectively in theevent of a natural disaster or other unforeseen circumstances. The key is to create frameworks

for adapting to the unexpected, rather than attempting to respond to the unexpected in a
predictable manner.
Social needs: Among the various needs in the world today, this refers to needs in public orsocial areas such as the environment, poverty, human rights, welfare and health.

Sustainability Report 201311

GovernanceCorporate Governance and Compliance
The basic policy of the USHIO Group is to ensure the transparency and efficiency of the Group’s management, and increase
corporate value to meet the expectations of all of the Group’s stakeholders. To this end, we place the establishment andmaintenance of systems of internal control, incorporating compliance with laws, regulations, social norms, corporate
ethics, and J-SOX regulations, as a top management priority and make every effort to promote these systems.

Corporate Governance* Framework
USHIO uses a management structure that includes a Board of Corporate Auditors. Management andadministrative responsibilities are divided among three governance units. The first is the Board of
Directors, which determines management policies and makes decisions about other matters of thehighest importance. The directors also oversee the management of business operations. The second
is the representative directors, who are responsible for conducting business operations. The third is
the Board of Corporate Auditors, which is responsible for audits. To assist the Board of Directors inreaching decisions, the USHIO Group has three advisory units that examine and discuss management
USHIO’s Internal Control Framework
General Meeting of Shareholders
Election anddismissal

Election anddismissal

ReportingBoard of Directors
Auditing
Election anddismissal

Reporting•Appointments
and removals•Supervision

Board of Corporate Auditors

Reporting

Auditing

Election anddismissal
Independent Auditing Firm

• Approval of appointments andreappointments• Evaluation of appropriatenessof financial audits

Reporting

Reporting
Representative Directors

Instructions andsupervision

Reporting about
importantmatters

Security Export Control Committee
Corporate Social Responsibility Department
Compliance Committee

Executive Council
Group Coordination Council(Deliberation on important matters)
Instructions andsupervision

Reporting about
important matters

Business Auditing Department
including evaluation of theinternal control system
Submitting policy
proposals and plans

Authorization of policy
proposals and plans

Divisions, subsidiaries, and affiliates

Glossary
Corporate governance: This refers to a company’s mechanisms for management and supervision. Supervision refers not to monitoring forsuspicious activity in management, but rather setting targets for management and evaluating performance. In other words, a mechanism forensuring that management is managing the company for the shareholders.

12

Sustainability Report 2013

http://www.ushio.co.jp/en/governance (Corporate Governance System)
http://www.ushio.co.jp/en/compliance (Compliance)

strategies and medium and long-term management policies withrespect to the entire Group. The units are the Executive Council,
Group Coordination Council and the Group’s executive officers.
In addition, the USHIO Group has a business unit structure andan executive officer system for the purposes of strengthening andspeeding up the execution of business operations by the representative directors.
Audits by Corporate Auditors
USHIO has a Board of Corporate Auditors with five members that
include three outside auditors who are independent of the USHIOGroup. The outside corporate auditors are professionals in fields
such as finance, accounting, and law. The inclusion of outside
corporate auditors makes it possible to perform audits from an
objective and neutral perspective. The board submits reports concerning legally required items and other matters to the Board of
Corporate Auditors. Other matters include items that may have asignificant impact on the entire Group, important items concerning
monthly business operations, and other information that should
be reported. The independent auditor submits an annual auditing
plan to the Board of Corporate Auditors and explains its specificauditing objectives to the corporate auditors. In addition, theindependent auditor provides the corporate auditors with reviewsof quarterly and year-end financial reports as well as reviews of thefinancial audits and summaries of audit results. This forms the basis
for periodic meetings of the independent auditors and Board of
Corporate Auditors.
Business Audits
The importance of internal audits has increased along with theenactment of the Companies Act and Financial Instruments
and Exchange Act of Japan, and in order to prevent corporate
impropriety. Besides compliance audits of laws, regulations andso forth, and assessments of the design and operation of internal
controls, internal audits must now also serve as a consulting function with a view to improving business processes and other aspectsof the company. At USHIO, we conduct various audits, including
compliance audits and audits of export controls, both internallyand at our Group companies. To ensure the quality and raise theeffectiveness of these audits, the corporate auditors coordinate
with relevant departments at all times. The theme and inspection
items in our internal audits are selected in accordance with thesituation of the organization to be audited from the perspectivesof the Company’s business aims and minimizing management
risks. We take care to ensure that the audits provide value by
helping USHIO achieve its organizational objectives. Moreover,the indications and recommendations raised by the internal audits
are followed through periodically until the required improvements
have been made. We will continue to have audits conducted inclose observation of actual frontline business conditions with aview to issuing recommendations for streamlining management,
improving business operations, safeguarding assets, and improving
the management structure while minimizing risks.

Compliance
It is widely recognized that breaches of compliance can undermine
the very foundations of the public’s trust in a company or government, and carry a risk of significant losses through claims for damages, and sharp declines in sales. At USHIO we have established aCompliance Committee to address compliance-related concerns,
including potential risks, across the entire Group as early as possible. We have also established the USHIO Helpline as a point ofcontact for external consultation and reporting.
Information Security
USHIO often handles customers’ private information or is entrustedwith their important company information and other information
assets in the course of its business activities. We consider it a toppriority to safeguard such information from threats such as leaks
and modification. Moreover, because we recognize that information is an asset that generates value, and is a source for increasing corporate value, we are taking measures, including raisingawareness of information security among our employees, andimproving our risk management systems. This kind of management
requires three interlocking initiatives: rules must be determined, aframework must be created for observing those rules, and awareness must be raised. In fiscal 2012, we conducted a revision of
our information security management rules to ensure that they
are appropriate and current. Our next step will be to make surethese rules are applied uniformly and consistently within the USHIOGroup throughout the world. Specific examples include the promotion of countermeasures, such as having a certain secure area at
each business site where access is controlled with IC embedded
ID cards, antivirus measures for PCs, encryption of hard drives,
authorization management of operation systems, and strengthening the capacity to respond to disasters and faults. Other measures
include setting up automatic encryption for email attachments,and functions to prevent sending emails to the wrong recipient,
strengthening systems for certification management and program
asset management, and shoring up antivirus measures for portablestorage media. It is also important to enhance information security
awareness and skills for each individual employee in order to prevent information leaks. We have therefore taken steps to increaseawareness among employees of the various threats and opportunities where leaks may occur, by implementing a company-widee-learning program, and conducting level-specific training for new
recruits. In fiscal 2013, we also started a PDCA cycle as an initiative
to ensure that this awareness penetrates our entire organization at
every level.
Fair and Equitable Business Transactions
The USHIO Group’s 10 Action Guidelines expresses our commitment to always respecting the position and rights of the otherparty in business dealings, to conducting transactions fairly andequitably, and to not taking advantage of a dominant position to
impose inappropriate terms or conditions. We also promise towork to prevent corruption and carry out appropriate business
transactions in line with socially accepted practices.

Sustainability Report 201313

PeopleWorking Together with Employees
By working to fulfill its responsibilities to society, the USHIO Group aims to create a company where employees can workwith enthusiasm and a sense of purpose. As is clear from the first item in the Group’s management philosophy: “Build botha prosperous Company and prosperous employees,” this goal has remained the same since the Company’s foundation.

Respecting Human Rights
The USHIO Group respects the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work. USHIO also declared its support for the ten principles of the United Nations
Global Compact in October 2010. The principles relate to human rights, labor, the environment, andanti-corruption. USHIO is promoting initiatives to ensure adherence to them. In addition to this, CSR
procurement, conflict minerals*, and diversity are also important themes related to human rights.
Initiatives to promote diversity have been increasing in Japan guided by national policy, and USHIO isfollowing a long-term plan to ensure that the Company does not discriminate based on nationality,
gender, or any other such factor when offering employment or promotion opportunities.

Diversity*
Utilizing Global Human Resources
Overseas sales account for over 70% of the USHIO Group’s total. Human resources capable of blending in to communicate and understand local needs are indispensable in promoting business overseas.
We are therefore working to develop and utilize global human resources by conducting international
study programs, hiring international students, sending personnel from Group companies overseas tothe parent company in Japan, and providing opportunities for interaction between Group companies.
Support for Working Women
We believe that new talent pools are needed in order to generate new business amid the matured
economies of the industrialized nations. Consequently, we have more than doubled the percentage of female employees in sales and technical positions since 2007 in our effort to recruit humanresources without regard to gender. We have also taken steps to encourage and motivate employees
on an individual level. For example, in December 2012 we invited a female sales manager fromoutside the Company to come and run a study and networking session for female sales staff, andin January and April 2013, we held talks between the chairman of USHIO and female employees tomake sure that their voices are being heard by senior management.

Glossary
Conflict Minerals: The Dodd-Frank Wall Street Reform and Consumer Protection Act drafted by the U.S. Securities and Exchange Commission requires listed companies in the U.S. to report on the use of four substances (gold, tin, tantalum, and tungsten). There are concerns that,
depending on where they have been mined, these substances could be used to provide funding for armed forces in the Democratic Republic of
the DRC. To help resolve human rights issues, companies are required to manage these substances carefully, such as by specifying smelters andso forth.
Diversity: The principle of diversity calls for the creation of organizations that allow diverse people to achieve their full potential, regardless ofrace, gender, age, or beliefs.

14

Sustainability Report 2013

http://www.ushio.co.jp/en/peoples (Working Together with Employees)

Work-Life Balance*
Support Programs
USHIO aims to be able to flexibly accommodate diverse values
and working styles regardless of employees’ lifestyles and gender.
As part of this, we have a support system for childcare leave thatoffers much more than the legally required level of support. In
March 2009 we created the Work-Life Balance Handbook, whichcontains information on programs for balancing work. It also
contains information on child-raising and maternal welfare, howmanagers should respond, and other tips for employees who
would use the programs and for their managers. In July 2011, werevised our system for working shorter hours to extend the eligibility of choosing to work shorter hours until a child is six years old.
Moreover, in an effort to build an environment conducive to supporting gender equality, we uploaded stories of male employees
and their experience with childcare leave for view on our intranet
portal. Consequently, in June 2012, for the third time we earned
Kurumin* certification under the Act for Measures to Support theDevelopment of the Next Generation.
USHIO’s Work-Life Balance Support Program(Balancing Work and Parenting)Prior to Birth•Leave of absence for

fertility treatment•Shortened working

hours (pregnancy)•Leave of absence for

Birth

Post Natal•Childcare leave•Paternity leave• Antenatal/postnatal t Women may take up•Short working hours(childcare)•Excused from work
to two years leaveoutside of regular
two times for each
hours, or amount ofchild, regardless ofwhether their spouse regular work limited•Amount of late night
is working
work limited•Nursing care leave•Childcare leave•Hospital visit leave

leave
t 8 weeks eachmaternity clinic visits•Pregnancy discomfort

leave

Employees Using Childcare
Men
Women
Total

Childcare

2011

2012

2013

2
29
31

2
27
29

5
32
37

Paid Vacation and No-Overtime Days
Based on a commitment toPercentage of Paid Vacation Days Used
work-life balance, we designate%
certain days as no overtime days
100
and prearrange paid vacation
75
days to give employees time tospend with their friends and50
family or on their own pursuits
25
and to help create a more
0
dynamic working environment.
2011
2012
2013
We believe that performance
improves when employees maintain their physical and mental health by taking time off to relax
and rejuvenate.

Occupational Health and Safety
USHIO INC. engages in occupational health and safety initiatives tomaintain a workplace that provides total peace of mind to employees. Various systems have been established to help employees

Work-life Balance: This refers to regulating the workplace and the social environment toallow people to enjoy full lives while working. The concept extends further than the simple
reduction of overtime, calling for initiatives that improve the quality of both work and private
life to achieve synergies.

maintain their health. Health-related counseling is provided to
employees with health or weight issues identified by a healthcheck, and physicians consult with employees working long hours.

Education and Training for Human Resources
Development
Various training programs have been established to facilitate thedevelopment of personnel capable of acting independently and to
make it possible to align “the Company’s prosperity with enriching
the lives of individual employees.”
In addition, revisions were made to the skills required for eachdivision and type of job, and a system established at each office
which will facilitate training and evaluation of employees.
Regardless of the type of job, all employees are trained todevelop their ability to maintain an awareness of the problem, aproblem-solving approach that is not limited by past experience andthe ability to independently develop and implement new proposals.
Support for Self-Development
Correspondence courses: In fiscal 2013 we had a lineup of 290
courses on subjects ranging from management to computer skills,
in addition to basic classes on foreign languages, technical topics
and certification courses. When employees finish a course, they arepaid a bonus as a way to support their motivation to learn. In fiscal
2013, a total of 356 courses were taken.
TOEIC testing: TOEIC tests are given to employees who want togauge their English ability and further improve it. The Company
pays a portion of the testing fees. A total of 75 employees took
the test in fiscal 2013.
Tiered Employee Training
Training for young employees: Available for new recruits
straight from university who have been with the Company for five
years. This training focuses on developing the skills to guide andcorrect others when providing on-the-job training.
Training to prepare corporate officers for appointment: This
training targets middle-management level employees who aim tobecome corporate officers. The course covers the fundamentals
of management, and includes a diagnostic component to confirm
whether participants have the required ability to be a corporate
officer, and their capacity to know themselves and to raise theirown awareness. The results of the diagnostic component are sent
to the participant and their supervisor and used to develop theparticipant’s abilities going forward.
Training for newly appointed line managers: Available for
employees who have recently been promoted to a line manager(generally, a department manager) position. Training focuseson the ability to identify organizational objectives, then lead or
manage the department or team to achieve these objectives,
while addressing any obstacles or problems encountered along
the way.
Division manager training: The training programs for businessdivision managers and other section managers not only enhanceorganizational management skills but also ensure that managers
can keep their eye on the medium- and long-term strategic goalsof their business and resolve issues in order to meet those goals.

Kurumin: The Kurumin symbol is used by companies who receive certification from Japan’s
Ministry of Health, Labour and Welfare after creating and implementing an action plan forsupporting employees in childcare, and meeting certain standards.

Sustainability Report 201315

Quality

Relationships with Customers and Business Partners
To accurately grasp the needs of our customers, we think from their perspective, then work as one with our business
partners to improve our product development and quality. In this way we provide products and services with appealing
quality that goes above and beyond the run-of-the-mill.

Quality Policy
USHIO has created unified quality policies for the entire Group and continued its efforts toimprove quality.

UPS (USHIO Production System)
UPS (USHIO Production System) is the name of a new initiative aiming to establish a unique new
production system at USHIO’s Harima Division from fiscal 2011. Amid a rapidly changing businessenvironment, it is important to be able to efficiently supply high quality products in any environment.
To achieve this, we saw the need to think outside of the box and promote improvements from a
broad-ranging perspective by integrating our ongoing UPS, TPM and TQC improvement activities,
rather than repeatedly going over the same ground.
The main thrust of the UPS movement
is ZD (zero-defects) activities, which seek
Basic Philosophy
to eliminate defective work by stimulating
USHIO regards product quality as an overriding priority
individual autonomy and enthusiasm among
and will promptly provide global markets with high quality,
employees and fostering creative thinking.
safe products and services that are highly reliable and
It is a movement that consists of three pillar
economical in order to fulfill the requirements of customers.
groups. Namely, the Manufacturing TechnolAction Guidelines
ogy Group, the Quality Assurance System
1. We will act rigorously in putting the customer first andReform Group and the Education andputting quality first, and will develop appealing products
Enlightenment Group.
with cutting-edge technology to fulfill the requirements
In fiscal 2013, we started initiatives aimedof customers and earn their trust.
2. We will strive to further improve quality by developing
at producing concrete results. Looking
entity-level quality management systems and continuallyahead, with an eye to measuring actual
working to improve their effectiveness in order to meeteffectiveness, we will enhance our activities
the needs of customers.
to improve customer satisfaction in the
3. We will work to share information with customers,
Manufacturing Technology Group, embedmake cost improvements, develop new products, pioimproved systems in the Quality Assurance
neer new markets, and promptly provide global markets
with high quality, safe products that are highly reliable
System Reform Group, and firmly establish
and economical.
an ongoing education system in the EducaApril 1, 2010tion and Enlightenment Group.
Shiro Sugata
President andChief Executive Officer
USHIO INC.

Glossary
Evaluation Criteria of Super Green Products: The certification standard for Super Green Products is comprised of the following

16

Sustainability Report 2013

three requirements:
1) Environmentally conscious product score of 80 or more (based on environmentally conscious product assessment standards)
2) Environmental factor of 1.5 or more (calculated in comparison to previous products, with fiscal 2000 as the baseline year)
3) Attainment of transparency
Environmental Factor: A comparison of the environmental efficiency of a newly developed product and past products can be expressed
numerically as an environmental factor. Higher numbers represent greater improvements. The environmental factor is calculated by dividing theenvironmental efficiency of the target product by the environmental efficiency of the equivalent product in the baseline year. USHIO calculates a
product’s environmental efficiency by dividing product value (performance) by environmental impact. Product value is calculated by multiplying
energy output by lifespan. Environmental impact is calculated with well-defined formula:http://www.ushio.co.jp/en/supplier (Working Together with Business Partners)
http://www.ushio.co.jp/en/customer (Working Together with Customers)

Contributing to Society with USHIO Products

Promoting CSR Procurement

Having started out as a manufacturer of light sources for industrial
applications, USHIO has continued to develop products to meet theneeds of the times. Recently an important theme for us in fulfilling
our corporate social responsibility is contributing to society throughour main business. In line with this, we have been aggressively
launching products to solve issues in a variety of fields through theapplication of light.
In fiscal 2013, we focused on broadly extending the scope of ourenvironmental assessments from the product development stage,and have been strengthening our initiatives to renew the performance of our products. We will use the light technologies we havedeveloped through the years, applying them and developing themto address problems that must be solved at the global level suchas medicine, health, the environment, energy, water, security, andfood. At the same time, we will provide products and services thatoffer high added value to meet our customers’ needs.

In line with the CSR Action Plan, from fiscal 2013 we have beensurveying our suppliers' CSR actions. The surveys provide further
opportunities to help suppliers’ understand USHIO’s stance, andwe are beginning to see a virtuous cycle emerge, where we findopportunities to achieve mutual understanding on various aspects.
As a result, we are beginning to see improvements in many of our
suppliers’ understanding and response to CSR.

Development of Super Green Products
USHIO is working to create environmentally responsible products
and has created its own proprietary certification standard, known
as Super Green (SG) products, which are recognized as actively
incorporating more environmental technologies than conventional
products. SG products must be the best in their class, and offer
superior environmental performance in terms of energy efficiency,
extended lifetime, 3R design, materials used, applications and soforth. In addition, the product must satisfy the numerical standardsof our USHIO environmental factor* requirement. Currently, theGroup has certified 15 SG products.
New certified products in fiscal 2013 include special lamps for
medical applications, LED light sources, and other high-valueadded energy saving industrial process equipment. In this way wehave sought to address environmental concerns in the productgroup where our proprietary strengths shine most brightly. The
number and variety of certified Group company products has
also expanded significantly, and we expect it to continue to do sogoing forward.

Launch of the Quality Assurance Center
From April 2013, the separate Quality Assurance Divisions that had
been established at each business site were integrated to launch
the Quality Assurance Center. With this move, USHIO will exploit
the good aspects of quality control know-how developed at eachbusiness site, to achieve even more attractive quality and efficiency.
This will enable us to meet the exacting demands for quality
required by our lineup of medical equipment, which has continued
to expand in recent years. Moreover, we will use our accumulated
knowhow in making products for industry to strengthen our activities in line with ISO 13485 (an international standard for quality
assurance of medical equipment. The content of the standard
has been modified from the ISO 9001 standard, and additional
requirements inherent to medical equipment have been added),in order to deepen our relationships with overseas manufacturing
companies going forward and create an integrated Group-wide
quality assurance system.

√ [(Energy input)2+(3R volume)2+(Chemical substances content)2]
Notes: 1. Energy output: For lamps, primarily lighting output and intensity in the necessary
wavelength range
2. Energy input: Energy consumed in using the product3. 3R volume: Product size and weight (quantity of resources used)
4. Chemical substances content: Quantity of substances with environmental risk
contained in the productPromoting Green Procurement and Compliance with
International Environmental Laws and Regulations
To ensure the smooth, stable supply of its products in the faceof a diversifying body of overseas laws and regulations, USHIO
is focusing on timely collection of information, and building avalue chain* designed in response to these requirements. We
hold explanatory meetings with our suppliers to deepen mutual
understanding and gain their cooperation in responding topurchasing policy, green procurement スーパーグリーン製品マーク
standards, RoHS, andREACH regulations. We also conduct continuous activities basedon dialogue with suppliers to avoid problems arising with delivery
schedules and product quality. Through these activities we aim toraise overall customer satisfaction.

Checking for Conflict Minerals*
In accordance with the clause on conflict minerals in the U.S.
Securities and Exchange Commission’s Dodd-Frank Wall Street
Reform and Consumer Protection Act, in August 2012 a final rule
was adopted requiring companies listed on securities exchanges in
the U.S. to disclose and report on their use of conflict minerals intheir products. Conflict minerals include tantalum, tin, gold, andtungsten, produced in the Democratic Republic of the Congo or
adjacent countries. The law has been enforced since January 2013.
USHIO uses significant quantities of tungsten in its electrodes, andhas therefore responded by strengthening its surveys on suppliers’
use of materials, and has started surveys using the EICC/GeSI*
Conflict Minerals Reporting ledger sheet.

BCP* Initiatives
The Great East Japan Earthquake of March 2011 taught us a
powerful lesson on how entire industries can be impacted by theinability to supply just one component. USHIO INC. commands
extraordinarily large market shares for many of its light source
products used in various industries. Recognizing our important
responsibility to ensure stable supplies of these products, we havebeen actively promoting business continuity plans (BCP).
Since April 2012, we have had a dedicated, companywide committee that has been formulating an overall plan, including building systems for cross-divisional back-up between each businesssite, and to enable minimization of damage and swifter recovery
in the event of a major earthquake or when other disasters occur.
We have taken stock of our disaster damage risks, and started
creating various specific action plans. With respect to information
security, we have made our business process systems more robust
against disasters and faults, and have bolstered our network infrastructure and internal data assets as part of an ongoing effort toensure stability across all aspects of our operations.

Value chain: An approach in which the chain of value generated by buying and distribution,
manufacturing, shipping, sales and marketing, and services, coupled with personnel and labor
management, technology development and other efforts that support these processes, giverise to value in end products and services. The term was first coined in the book Competitive
Advantage by American scholar Michael Porter.
EICC/GeSI Template: A common global template provided by the EICC (Electronics Industry
Citizenship Coalition®) and the GeSI (Global e-Sustainability Initiative) for gathering procurement data related to conflict minerals.

Sustainability Report 201317

Products That Solve Societal Issues

MedicalEnergy(treatment, diagnosis, sterilization and testing)Light-based medical equipment is attracting great interest due toits ability to enhance the quality of life. USHIO employs the mostadvanced technology to develop new products used in medical
treatment, diagnosis, testing and sterilization/hygiene.

Light plays a central role in the development of many newenergy sources including solar power. USHIO has taken apioneering role in the development of new infrastructure andtechnology to promote a carbon-neutral society.

UV phototherapy device fordermatological problems
TheraBeam® UV308

Solar simulator for
testing solar batteries

Point Reader® andPoint Strip®

Agriculture

Security(cultivation and propagation)
Agriculture faces great challenges in our modern world topreserve the safety, quality and stability of our food supply. Bydeveloping and optimizing man-made light sources that canbe used for cultivation, USHIO hopes to help solve global foodsupply issues.

(hazardous chemicals, surveillance and information security)
USHIO provides products for a variety of purposes including thedetection of pesticides and hazardous chemicals, nighttime
surveillance and security. USHIO products are also used toprevent data theft and provide information security for computer systems.

Lighting systemfor plant cultivation

Biotip for chemical
detection system

Light source unit
for plant cultivationand control

Natural environment(air and water quality)
USHIO has developed light-based products that help improvewater quality in rivers, groundwater, water supply and sewerage systems, and preserve air quality by reducing gas andparticle emissions.

UV germicidal lamp unit
without mercury

18

Acceleration
testing system

Min-Excimer

Sustainability Report 2013

USHIO Light Put to Work in Ballast Water
Sterilization (USHIO EUROPE B.V.)
Ballast water is a problem because it impacts marine ecosystems.
In order to eliminate this impact, the water must be sterilized,
and one method for doing so uses light. This method has drawn
attention for being compact, easy to handle and not producing
chemical pollution. Water treatment using light is an important
technology in all water-related fields. USHIO EUROPE currently
supplies UV lamps and power sources for ballast water as wellas control parts when they are needed. Going forward, the company intends to expand into a variety of applications, including
industrial wastewater treatment, and supply them to the market
as optical solutions to environmental problems.

Environment

Environmental Activities
The USHIO Group has defined a vision of where it wants to be in 2020, and is strengthening its initiatives to contribute to
the realization of a sustainable society through its core operations.

Message from the Director Responsible for CSR
In the 10 years since we initiated Group environmental management activities, we have encouraged
environmental initiatives throughout the entire Group, set key environmental tasks for each Group
company, and carried out performance evaluations. Today, USHIO recognizes that environmental
performance is itself an aspect of quality, and this concept inspires us to contribute to theenvironment through our products. We will continue to promote environmental management as oneof the driving forces behind our Medium-Term Vision.
Tadashi Taki: Officer in Charge of CSR

2020 Environmental Vision
The USHIO Group formulated its 2020 Environmental Vision with the goal of becoming a company
able to contribute through its business activities to the realization of a low-carbon*, recyclingoriented*, biodiversity-preserving* society by the year 2020. Under Phase Three of the Environmental
Action Plan, which started in fiscal 2010, we extrapolated back in time from our vision for 2020, andbroke down our vision into a set of specific goals through a process called “back casting.”

History of USHIO’s Environmental Initiatives
2020 Environmental Vision Through Lighting-Edge Technologies, we will contribute to: creation of a low-carbon society,conservation of resources, and preservation of biodiversity.
USHIO’s vision for
the Company in 2020

Back casting*Low-carbon society
Goals and Targets of Phase
1 of USHIO’s Environmental
Action Plan

2003

2004

2005

Goals and Targets of Phase
2 of USHIO’s Environmental
Action Plan

2006

Published environmental
reportPublished environmental
reportEstablished Environmental
Committee(CSR Committee from 2011)

2007

2008

2009

Goals and Targets of Phase
3 of USHIO’s Environmental
Action Plan

2010

2011

2012

Recycling-oriented society

Goals and Targets of Phase
4 of USHIO’s Environmental
Action Plan

2013

2014

2015

Biodiversity-preserving society

2016

2020

Introduced material flow cost
Signed UN Global Compact
accounting
Started collection and recycling
Started collection and recycling
of UV lampsof cinema projector lamps

Introduced environmental
management information
systemEnvironmental tasks presented
at productivity improvement
meeting

Formulated CSR
Action Plan

Glossary
Low-carbon Society: A society that reduces its CO2 emissions to prevent global warming.
Recycling-oriented Society: A society that uses resources carefully, promoting sustainable recycling through reuse and other means.
Biodiversity-preserving Society: A society that supports a rich variety of life by protecting diversity in genes, living organisms, and biotopes.
Back casting: A technique for setting targets by working backward from a future vision to the present.

Sustainability Report 2013

19

Reviewing Phase Three of the Environmental
Action Planon establishing the foundation for our environmental initiatives,and actively promoted environmentally conscious products andSuper Green products based on our own quantitative standards.
The results of our initiatives for environmental themes are as follows:

Although overall we achieved levels that were close to ourgoals, we did not achieve a reduction in CO2 emissions, partly
because we didn’t consider changes due to fluctuations in
production volume. On the other hand, we made good progress

http://www.ushio.co.jp/en/csr/eco/manage/plan.html

Environmental Themes
Environmental
management
Promote environmentally conscious productperformance

Environmentallyconscious business
operations (improve
environmental
productivity)

Activities to contributeto an environmentallyfriendly society

Evaluation

Strengthen environmental
governance

Created three-year plan in accordance with phase-3 of the Environmental Action Plan at all Group
production sites.

Carbon management*

Published CO2 emissions in accordance with guidelines on web site and in Sustainability Report.

Expand lineup ofenvironmentally conscious
products

Certified a total of 15 environmentally conscious products (Super Green products).

Strengthening global
warming countermeasures

Implemented measures to strengthen links within the Group in order to reduce CO2 emissions; however, theabsolute value of CO2 emissions was 5% higher than the standard. Also carried out measures to reduce CO2
emissions from distribution operations.

Conserve resources

Achieved 99.8% zero emissions on a Group basis. In efforts to use water resources efficiently, madeprogress in recycling industrial-use water, and achieved 45% reduction from standard value.

Chemical substancemanagement system(CMS)

Strengthened links between production sites in Asia on chemical substances management. Shared improved
methods for managing chloroform throughout the Group, and in reduction of hazardous chemicals,
achieved 20% reduction in emissions of top five ranking volatile organic compounds (VOC).

Biodiversity preservation

Conducted biodiversity evaluation

Phase Four of the Environmental Action Plan
In light of the power supply situation following the Great East
Japan Earthquake, we set production efficiency assuming supply
shortages as an important theme. All USHIO Group business sites
are dedicated to contributing to a low-carbon society by setting
accumulative targets. We will focus on contributing to society by
reducing CO2 at business sites and through our electrical products,
and by developing a material database and Super Green products.
During the third phase, we produced steady results with innovate
environmentally conscious products, by using LEDs and othermeans. We will now work even harder to parlay these innovations

into real increases in sales. In chemical substance management,such as compliance with the Mercury Pact and the new European
RoHS2 standard, we will aim to comply with international standards and to remain firm in this approach. In our links with Group
companies, we have taken concrete steps such as implementing
a quantitative evaluation system and framework, and each sitehas started to show distinctive strengths. We aim to raise the bar
even higher during phase four of the Environmental Action Plan bystrengthening links within the Group, and other means.
We have also revised our targets for emissions per unit of net
sales under our CO2 reduction plan.

Phase Four of the Environmental Action Plan
Expand Sales of Environmentally Conscious Products

Global WarmingCountermeasures

Chemical SubstanceManagement

Resource Conservation andBiodiversity Preservation• Create Super Green products• Increase ratio of environmentally conscious products amongnet sales• Reduce CO2 emissions atbusiness sites• Reduce CO2 emissions due to
distribution• Enhance reliability and efficiency of CMS• Enhance customer response
regarding chemical substancemanagement• Reduce waste emission volume
by unit sales• Promote stakeholder
engagement• Social contribution activities
and biodiversity preservation

Committees for Each Measure Promote Activities
Global WarmingCountermeasures Committee

Green Products Committee

Glossary
Carbon Management: Management of CO2 and other greenhouse gas emissions as ameasure to counter global warming.
Zero Emissions: Activities aimed at reducing waste emissions from production, disposal andconsumption to zero.
Stakeholder Engagement: Initiatives to promote understanding and discussion of stakeholders’ views in company activities.

20

Sustainability Report 2013

×

3R activities at eachbusiness site

CSR Procurement
Committee

http://www.ushio.co.jp/en/environmental (Environmental Management System)
http://www.ushio.co.jp/en/energy (Global Warming Countermeasures)

Phase Three of the Environmental Action Plan—
Highlights (Fiscal 2011-2013)
CO2 Emissions

Initiatives at TAIWAN USHIO LIGHTING INC.
Ceased Using Urethane Packaging

Water resource usage (water input(m3)/production amount (million yen))

26,360t-CO2

5.48

26,836t-CO2

7.2

Efficient use of resources(Total for production sites in Japan)

Waste emission volume(Total for production sites in Japan)

98.9%
95.6%

1,482t1,549tAwards Received in Fiscal 2013
Chiyoda City Environmental Consideration Award for Global
Warming Action Plan (USHIO INC.)
In February 2013, USHIO INC., the parent company of the Group,
received an Environmental Consideration Award from Chiyoda
City, a ward of Tokyo. The
award is given to businesses
in recognition of efforts todevelop human resources
who will act considerately
for the environment as wellas measures to improvebuildings and equipment,
thereby focusing on both
Mr. Omori, leader of the Head Office Environmental Promotion Committee (left), Masami the hard and soft aspects of
Ishikawa, Mayor of Chiyoda City (center), and their operations.
Mr. Ujiie, general manager of the CSR Department (right)

Top Award for Outstanding Energy Management(Gotemba Division)
The Gotemba Division received the Top Award for Outstanding Energy Management from the Kanto Area Electricity Use
Rationalization Committee. The division received the award forsuccessfully using an electric power monitoring system developed
in-house by USIHO to achieve a substantial reduction in electricity
consumption. Particular mention was made of efforts to reduce
peak consumption following the 2011 earthquake by closing theadministrative wing and shifting Life Test and production operations to other sites.
Canada’s Greenest Employers Award(CHRISTIE DIGITAL SYSTEMS CANADA INC.)
Our Canadian subsidiary, CHRISTIE DIGITAL SYSTEMS CANADA INC.
received the 2013 Canada’s Greenest Employers award, making
to receive this award, making it the third time the company hasreceived the award. Reasons cited for the award included an environmentally conscious renovation of the business site that received
a LEED* Gold Compliance Renovation evaluation, and other efforts
to make improvements to reduce the impact on the environment.

Equipment for air pouch

TAIWAN USHIO LIGHTING
INC. (TULI) has changed thematerial used as cushioning
in its shopping containers
from urethane chips to air
pouches. The bags used
for the air pouches are
made from environmentallyfriendly biodegradable plastic that can be broken down
by microbes into water andcarbon dioxide.

Silica Glass Recycled as Heat-Resistant Blocks forElectric Furnaces
In other initiatives, TULI
found a way to use silica
glass as a material for a new
product, where previously
it had been disposed ofin landfill. The glass can
now be made into blocks
for constructing electric
furnaces, helping to reduce
Heat-resistant blocks made from silica glass
landfill waste costs at thesame time.

USHIO Harima Division Introduces Gas-Powered
Electricity Generator
The Harima Division
has introduced a small
gas-powered electricity
generator that has a minimal
impact on the environment
and low noise levels. To
further ensure that people
in the surrounding area are
not bothered by noise, thedivision has worked to achieve highly effective noise prevention in
the facility, including construction of a 10-meter-high noise barrier.
The generator can be used to provide emergency power for reducing demand on the grid during the summer peak, and to provide
assistance during power cuts. This allows some equipment thatcannot be easily shut down to continue ticking over, even during
planned blackouts.

Changeover to Hybrid Vehicles (USHIO LIGHTING)
USHIO LIGHTING is taking steps to replace its company vehicle
fleet with hybrid vehicles. The changeover is already under way ateach business site, and with all 12 of the long-distance-running
sales vehicles already hybrids, the company has reduced annual
CO2 emissions by approximately 420,000 tons (total annual travel
distance of 12 vehicles is 304,315 km, representing a CO2 emission volume of 700,000 tons for an ordinary gasoline vehicle and280,000 tons for a hybrid vehicle).

LEED: Leadership in Energy & Environmental Design. A third-party rating system for environmentally conscious buildings, developed by the U.S. Green Building Council.

Sustainability Report 201321

Society

Relationship with Society
As a member of the international community, USHIO will contribute to the development of respective regions where it
conducts business. The Group has a growing body of contribution examples following its expansion in Japan and overseas,
and in addition to the initiatives reported here, is engaged in various activities in the fields of education, culture, disastersupport, and exchanges with local society. These areas are vital aspects of sustainability.

The USHIO Foundation
The USHIO Foundation was established in 1994 to commemorate the 30th anniversary of thefounding of USHIO. Its purpose is to contribute to the development of human resources, learningand culture. Its main projects include supporting the development of the next generation of humanresources who will be responsible for leading the world in the future by providing scholarships toassist with their studies, and promoting further interaction and mutual understanding between Japanand other countries. In fiscal 2012, the foundation provided scholarships to 37 graduate students(including overseas students) and 15 students in specialized courses at colleges of technology. So far,
426 scholarship students have been accepted, and we plan to continue focusing on calling for scholarship applicants from schools in areas affected by the Great East Japan Earthquake going forward.

USHIO INC.
Assistance for Recovery from the Great East Japan Earthquake
In March 2014 it will be three years since the Great East Japan Earthquake, and the areas affected by
the quake still require ongoing assistance. USHIO INC. head office, along with other companies in thesame building in Chiyoda City in Tokyo, jointly sponsored a second local food market to support theGreat East Japan Earthquake victims in Tohoku. This year the market’s sales were up 1.5 times fromthe previous market, and the number of visitors doubled.
Parent and Child Factory TourIn August 2012, the Gotemba Division held a Parent and Child Factory Tour event attended by 43
elementary school students and parents from local elementary schools. Gotemba City hosts parent
and child factory tours every year during the summer holidays, and this year USHIO INC. participated as part of its efforts to maintain communication with the local community. Visitors enjoyeda tour of the factory, tried out the TV conferencing system, and had lunch with employees in thecompany cafeteria.

Children enjoyed getting close to the TV
conferencing systemStudents’ Factory TourThe Gotemba Division received requests from local schools to allow students to visit as part of theirlessons to let them see what kind of products were being produced in the local USHIO factory, andhow they were being produced. In response, the division has been receiving the students of Numazu
National College of Technology and Gotemba High School for factory tours almost every year. The
visits provide an excellent opportunity to introduce the Company’s business operations and products
to the students.

Glossary
United Way: A volunteer-led non-profit organization committed to dealing with fundamental problems that occur in local communities.
United Way takes responsibility for resource management and long- and short-term results. The United Way Global Network achieves outstanding power by leveraging its combined capabilities at the global, regional, national and local levels, and their mutual cooperation, to provide afoundation for influencing local societies that is growing in every region throughout the world.

22

Sustainability Report 2013

http://www.ushio.co.jp/en/contribution (Working Together with Local Communities)
http://www.ushio.co.jp/en/society (USHIO Group Support for Culture and Learning)

CHRISTIE DIGITAL SYSTEMS CANADA INC.
The Gift of Life—Blood Donation
CHRISTIE DIGITAL SYSTEMS CANADA INC. has been running a
campaign to promote blood donation among employees since
February 2012. The company held seminars and lectures about
donating blood for all employees at the Canada Division, and 71
had donated blood by December 31, 2012. In 2013 the company
participated in the Waterloo Region High-Tech Companies Blood
Donation Race, organized by local companies, and as of July 2013,
has set a target of 75 blood donors for the year.

Helping Children Facing Starvation
CHRISTIE DIGITAL SYSTEMS USA donates both manpower andfunds to support the humanitarian food aid organization Kids
Against Hunger. Kids Against Hunger aims to help hungry children
around the world and has provided over 200 million meals tochildren and their families in over 60 countries worldwide since it
was established. All its activities are supported by several hundred
thousand volunteers. CHRISTIE DIGITAL SYSTEMS USA packaged
11,664 meals for distribution to children in Africa, and people
living in Orange County, California, who are suffering from hunger.

A message from the Canada Blood Service: “There are 78 keys on
your keyboard. If that many of your coworkers gave blood, we
could help 15 people in cancer treatment.”

USHIO AMERICA INC.

Continuing to Hold the United Way* Campaign
For five days beginning
October 1, 2012, CHRISTIEDIGITAL SYSTEMS CANADA
held a special event withsupport from local companies through United Way.
The event was a contest
to build a machine for
hurling footballs, leveraging CHRISTIE’s strengths in creativity and engineering. This year,
CHRISTIE DIGITAL SYSTEMS CANADA raised around C$90,000(approximately ¥7.3 million), and has become a powerful supporter of United Way, which is dedicated to supporting better lives
for people in the local community.

CHRISTIE DIGITAL SYSTEMS USA, INC.
Projectors Donated to American Red Cross
CHRISTIE DIGITAL SYSTEMS
USA responded to a request
for help from the American
Red Cross to donate projectors by supplying four digitalprojectors to emergency
centers operated by the U.S.
government. The LWU420
3LCD projectors can show
information in real time, helping emergency centers to minimize
damage and help protect areas during a disaster or emergency
situation. In the southern California emergency centers for Orange
County, Riverside County and San Bernadino County, the projectors play a critical role in protecting people.

USHIO Angels: This was originally the nickname given to the employees of USHIO America’s
Oregon Plant by people who knew of their charitable spirit and activities, which started in 2005
when one of their co-workers succumbed to cancer. It is now the name of a team made up of
USHIO America employees who join in the Relay for Life event.

USHIO Angels* Support the American Cancer Society
Employees from USHIOAMERICA INC. participatedin the Relay for Life* charity
event held by the American
Cancer Society on June
22-23, 2012. This year
they collected the highest
amount of donations yet—
US$86,464 (¥6.9 million).
Later, in November, USHIOAMERICA held a Cup Cake
War event to help raise contributions for the American
Cancer Society. Participantsin the event baked a hugequantity of cupcakes andraised money to donate to
the American Cancer Society
through sales to USHIO
Teresa Hernandez was the overall winner in the
AMERICA employees.
cup cake contest.
At the Oregon Division,
USHIO Angels will continue to take the lead in collecting donations
for the American Cancer Society through fun events.

Relay for Life: This event is held in cities and towns around the country every year by theAmerican Cancer Society. The Relay for Life involves continuous walking for 24 hours, on the
grounds of local schools, through parks and on sidewalks, with teams taking part in a relay
format. Walking for 24 hours without resting is meant as a way of signifying support forpeople battling cancer, which is a 24-hour-a-day battle that takes a toll on the body.

Sustainability Report 201323

Business Overview
Breakdown of Sales

Breakdown of Operating Income

Breakdown of Assets(Billions of yen)(Billions of yen)(Billions of yen)

Other Businesses 2%

Other Businesses 1%

Other Businesses 15%

Equipment
Business
60%

Equipment
Business
16%

Equipment
Business
47%

2013

2013

2013

¥143.4¥7.5¥228.6

Light
Sources
Business
38%

Light
Sources
Business
83%

Light
Sources
Business
38%

Equipment Business

Light Sources Business

Other Businesses

Imaging equipment

Discharge lamps• Digital projectors for cinemas• Digital projectors for general imaging(control rooms, simulators, signage, virtual
reality, and others)• UV lamps for manufacturing semiconductors, flat
panel displays, and electronic components• A range of lamps and industrial LEDs for use incinema projectors, data projectors, officeequipment, illumination, and other opticalequipment

Machinery for industrial uses
and others

Optical equipment• Optical equipment for manufacturing
semiconductors, flat panel displays andelectronic components (exposure tools, photocleaning units, photocuring systems, and others)• UV phototherapy devices, blood analyzers andother medical equipment• EUV light sources for inspection anddevelopment applications

Sales and Segment Income(Billions of yen)

Halogen lamps• For use in office equipment• For illumination applications (commercial
facilities, stage and studio lighting, specialized
lighting, and others)• Halogen heaters

Sales and Segment Income(Billions of yen)100

• Plastic forming applications, peripheral
machinery• Factory automation systems• Others(Billions of yen)

6

60

4

40

2

20

Sales and Segment Income(Billions of yen)(Billions of yen)

10

80
60

0.1

2
00.5
1

20
0

0.15

3
5

40

2011

2012

2013

0

0

Sales (left scale)
Segment Income (right scale)

2011

2012

2013

0

Sales (left scale)
Segment Income (right scale)

0

2011

Established 		 March 1964

Employees: 5,616 (as of March 31, 2013):

Paid-in capital		 ¥19,556,326,316
President and Chief Executive Officer

Parent company 1,793
Shiro Sugata

Subsidiaries• Japan 574• Overseas 3,249

Sustainability Report 2013

2012

Sales (left scale)
Segment Income (right scale)Corporate Data

24

(Billions of yen)

4

2013

0.0

Third-Party Opinion
USHIO’s sustainability reports over the past few years have conveyed theimportant base of operations, the Company will need to take a more

Company’s intention to incorporate the concepts of CSR, or sustainabil-

global perspective to CSR in terms of both activities and reporting. For

ity, into business management, and in doing so, to produce new social

example, as a global company USHIO will need to deal with supply

and business innovations that will give the Company an even greater

chain issues including labor and human rights in the abovementioned

competitive advantage.

Asian region, and this issue will become even more prominent going

This year, the report has a feature (pages 4-7) about the Company’s

forward. In its evolution into a global company, USHIO has made use

medical and science project for fiscal 2013. In this project, USHIO devel-of ISO 260000 and conducted CSR officer-level research seminars on

oped a blood analysis device using its optical and imaging analysis tech-human rights and education; however, it needs to review once again

nologies, which are unique management resources, in a field that it has

what issues and stakeholders are relevant at each phase of its opera-

been focusing on recently. The device is significant in that it will enable

tions, from raw material procurement, through transport, production,

simple and quick analysis of serum ferritin at local clinics and hospitals

distribution, and sales. Actively building relationships with stakehold-in Japan and overseas, making this important test accessible to everyone

ers and recognizing the issues involved will become a source of value

where previously it had been available only at certain institutions due

for USHIO, and give the Company a competitive edge. In that sense,

to its high cost. USHIO’s medical business is still only small in scale, but

I believe it would be beneficial for USHIO at this point to map out theby working with medical institutions in Japan, and NPOs and NGOs in“stakeholder landscape” (a diagram showing the status of relationships

developing countries, it has tremendous potential as a social businesswith stakeholders) on a global level, and to try engaging the stakehold-that can contribute to higher standards of healthcare in local communi-

ers in a sincere dialogue. From there, we will see which stakeholders

ties, and improved QOL for patients.

the Company will choose to engage, (local employees, suppliers, NPOs/

Moreover, the top management of the Company has got behind theNGOs, specialists, etc.) and what kind of frank opinions they can elicit,

CSR Action Plan, so that every department has produced measures andrather than simple lip-service. USHIO may already have implemented thismanagement priorities for a host of issues including human resource

approach to a certain extent, and I look forward to seeing the Company

development, the environment, customers, and diversity. Specific issues

extend these measures outside of Japan, eliciting and organizing key

to be addressed at the frontline in Japan are gradually being identified

issues and establishing PDCA cycles to build sustainable, responsible

and organized. The CSR Action Plan discussed on page 11 reveals acompetitive capabilities.

gradual incorporation of CSR at the concrete level through dialogue

Masaatsu Doi

with the departments responsible for each aspect. Indeed, while the

Associate Professor,
Takasaki City University of Economics

society aspect requires further steps to be taken in effective use of foundations and contribution activities through core businesses, we can see

Dr. Doi holds a PhD in commerce. He began
his current job in 2009 after graduating fromthe Hitotsubashi University Department of
Economics and completing post-doctoral
research at the Hitotsubashi University
Graduate School of Commerceand Management. He has written
several books, including CSR
Keiei—Kigyou no Shakai teki
Sekinin to Stakeholders (co-author,
CHUOKEIZAI-SHA, INC.)
Social Enterprize—Shakai teki Kigyou no
Taitou (co-author, CHUOKEIZAI-SHA, INC.)

gradual progress in the governance aspect, with the enhancement of
information security, in the people aspect, with support for women andpromotion of work-life balance, and in the quality aspect, with promotion of CSR procurement and checking up on conflict minerals.
Meanwhile, considering that around 70% of USHIO’s net sales are
generated overseas (in Asia and North America for example), and that
the Asian region, such as the Philippines and China, is becoming an

Tadashi Taki

Response to Third-Party Opinion

Director, Officer in Charge of CSR

We appreciate receiving valuable feedback from Dr. Masaatsu Doi, Asso-ahead, we will continue as a company to provide global society withciate Professor of Takasaki City University of Economics, on our Sustain-

solutions through the diverse potential of light. We recognize that in

ability Report 2013.

this role, it is vital to maintain and improve sound relationships with ourDr. Doi has provided a third-party opinion on each of our sustainability

stakeholders all over the world.

reports from the 2010 edition, and has given us his views and evaluation

By creating new social businesses, promoting steady CSR activities,

of USHIO’s CSR initiatives and progress. We have taken his observations

building relationships with stakeholders from a global perspective, andas a guiding policy in our efforts to improve and promote our activities.

other initiatives, we aim to ensure that our CSR activities are valuable,

In March 2014, USHIO will celebrate its 50th anniversary. Looking

and connected with our business management activities.

Sustainability Report 201325

Environmental Consciousness of this Publication
This Sustainability Report 2013 is printed on paper approved by the Forest StewardshipCouncil® at a green printing certified plant using waterless printing, which is highly effective
in reducing volatile organic compounds (VOC). In addition, the computer-to-plate (CTP)
method of printing is used to eliminate the intermediary materials required for the platemaking process.

Corporate Social Responsibility Department
Administration Division
USHIO INC.
2-6-1, Otemachi, Chiyoda-ku, Tokyo 100-8150, Japan
TEL: 03-3242-1892 FAX: 03-3245-0730
E-mail:kankyo@ushio.co.jp
http://www.ushio.co.jp/en1309S①-1000E①
Printed in Japan