SUSTAINABILITY REPORT 2017
Year Ended March 31, 2017

1

USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

FeatureThird-Party Opinion/
Corporate Data

CSR Action Plan

CONTENTS
President’s Message

2

CSR Management

4

CSR Action Plan
12

Governance13

People4‌
USHIO
Group Management Philosophy andCSR Management

18

Quality19

Environment

8

Medium-Term CSR Plan

22

Society

Feature10

12

Third-Party Opinion

25

Corporate Data

26

Editorial Policy▍Editorial Policy
In choosing the material for USHIO’s Sustainability Report 2017, we continued on from fiscal 2016 in making an effort to report in greater depth on the correlation
between management and CSR issues.
In addition, we have taken into account the ease of reading reports on PCs, and from fiscal 2017, we are publishing an online version of our sustainability report. In thesame manner as with other reports up to now, the reader is also able to download this report in PDF format.
We have also tried to create Internet links so that the report will serve as a gateway to our detailed and informative CSR website and online annual report. We haveedited the report to make it easy to read for a wide range of stakeholders.

▍Scope of Report
All USHIO business sites and Group companies worldwide▍Period of Report
This report basically covers from April 1, 2016 to March 31, 2017, but also includes some activities prior to this period and some activities in fiscal 2017.

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USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

President’s Message
USHIO aims for sustainable development in harmony
with society, with the intention of solving social issues
through the provision of solutions that use light.

Kenji Hamashima

FeatureCSR Action Plan

Third-Party Opinion/
Corporate Data

In particular, having examined the CSR-related aspects of our business activities from various perspectives, we haveidentiﬁed ﬁve main categories for issues that the Group needs to address: governance, people, quality, environment,
and society, and incorporated speciﬁc measures to resolve these issues into the Group CSR Action Plan.
By fusing our business strategies and CSR objectives, we aim to develop further as a company while advancing social
responsibility at the same time.
* Extreme Ultra-Violet: light with an extremely short wavelength of 13.5 nm. Lithography technology using EUV is capable of processing to ﬁner
dimensions that are diﬃcult to handle with conventional technology.

President and Chief Executive Oﬃcer

Working to Solve Social Issues with Light Technology
Since its founding in 1964, USHIO has based its business aims on creating new markets that use light, and has
continued to oﬀer products and technologies to cutting-edge industries that support the development of society.
Today, USHIO is pursuing new possibilities with light in the three business ﬁelds of electronics, visual imaging and life
sciences.
USHIO believes in contributing to society while growing its businesses. Contributing to society through superior
products and innovative research and development is a part of our management philosophy. This principle embodies
our intentions toward society and forms the basis of our CSR activities.
USHIO aims to help realize a sustainable society by working to solve various social issues through the provision of
products and services that use light technology. We believe this is our mission at USHIO.

CSR Activities Form the Basis of Management for Supporting Business Growth
In May 2017, the USHIO Group announced a new, three-year medium-term management plan. In a departure from therolling format that we have used for our medium-term management plans to date, this new plan is a ﬁxed plan with
new KPIs that we are committed to achieving for our stakeholders. The plan's theme is to solidify the foundation fortaking the next leap forward. In executing the plan, we will strive to achieve management priorities based on ourprevious medium-term management plan and maintain momentum to see its initiatives through in order to ensure that
we achieve our goals.
Our priority ﬁelds for pursuing new growth opportunities are imaging solutions, solid-state light sources, EUV *,development of new light-source markets, and medical. We will make a Company-wide eﬀort in these priority ﬁelds,
while maintaining and securing earnings in our existing businesses. In the new medium-term management plan, we will
focus on increasing our fundamental stamina to drive our measures forward continuously and on expanding our ability
to achieve these goals.
As globalization and market changes accelerate, we have entered an age where society makes strong demands ofcompanies regarding corporate social responsibility (CSR). The USHIO Group will work to maintain its status as a good
corporate citizen by sincerely addressing aspects such as environmental initiatives, compliance, and social
contributions, while constantly innovating management by strengthening its corporate governance and working toincrease its corporate value.

A History of USHIO’s CSR That Has Comprised Business Growth Consistent with
Changes in Society
Looking back at USHIO's CSR activities, it is evident that they are rooted in the spirit of manufacturing. Our activities
aimed at providing superior products and our recent initiatives in IT and robotization have led to further improvements
in quality that fulﬁll our responsibilities to our customers as a manufacturer. At the same time, we have aggressively
pursued environmental initiatives with the aim of reducing our burden on nature.
Moreover, USHIO is aggressively pursuing initiatives to encompass governance, society and people in order to grow as
a company, meet the expectations of stakeholders, and fulﬁll its increasing social responsibilities by strengthening
corporate governance through better transparency regarding the Board of Directors and greater dialogue withshareholders, by encouraging Group companies to give back to their local communities, and by maintaining a positive
work environment and oﬀering training to employees.
As a Group, we are advancing the globalization of management, promoting diversity through collaboration with humanresources of diﬀerent values and backgrounds, formulating green procurement standards to minimize ourenvironmental impact based on the laws and regulations of each country, and strengthening CSR procurement basedon fair, proper, and highly transparent transactions on international markets.
To remain a truly global company, USHIO partially amended its 10 Action Guidelines in December 2015 to reﬂect
support for the Universal Declaration of Human Rights and the Guiding Principles on Business and Human Rights,
based on the understanding that all people must respect each other's rights and to align awareness of human rights
with international norms. In addition to setting guidelines for respecting the rights of employees, suppliers and all otherstakeholders, we aim to foster a corporate culture that respects diversity and its role in promoting innovation.
USHIO has engaged in CSR activities in tandem with its growth as a Group and changes in society. A corporation
should build good relationships with its various stakeholders and advance by creating and oﬀering new value tocontribute to society. USHIO will continue working to be such a corporation going forward.

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USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

Towards Our Vision for USHIO for 2030
USHIO has established a 2020 Environmental Vision that aims to realize the creation of a low-carbon society, theconservation of resources, and the preservation of biodiversity. We have now taken the next step and started
discussing our 2030 Vision, which will deﬁne the society that USHIO wants to realize from the broader perspective of
CSR.
We are currently preparing to launch the Vision Formulation Working Group (provisional name), and aim to complete
the formulation during 2018.
In September 2015, the United Nations adopted the Sustainable Development Goals (SDGs) while calling forcompanies to take action and help solve these priority issues aﬀecting the world. The 2030 Vision will be built in
consideration of targets such as the SDGs and the Paris Agreement.

Broad Range of Initiatives Aiming for Sustainable Development
As part of strengthening our initiatives with regard to people, we have started a new diversity project aiming to realize
the creation of values by diverse human resources. I am the owner of this project, which forms one of ourmanagement strategies. We have assembled a diverse team of employees from diﬀerent business sites anddepartments, and together we will promote diversity through providing employment opportunities for people withdisabilities, encouraging the participation of women, providing career support, and driving forward work style reforms.
We have also established a new Nomination and Education Advisory Committee to select and educate themanagement human resources who will lead the USHIO Group in the future. The committee was established to ensuretransparency and accountability in this process, and is chaired by an outside director.
Furthermore, in our existing initiatives on Green products and Super Green products (green products that achieveespecially high performance), we are rolling out Phase Five of the Environmental Action Plan. This involves
incorporating a safety and security aspect to provide solutions that correspond to today’s needs for environmental
considerations and social contributions.
In our business activities, the ﬁelds that we should focus on are those where we can leverage our strengths in “light” tocontribute to society. Examples include provision of industrial solid-state light sources (LEDs, LDs, etc.) that conserve
energy and reduce waste, and the provision of light solutions that advance next-generation plant growing businesses.
In the ﬁeld of life science, especially, we aim to help raise the quality of life for people through “light,” through thedevelopment of products such as blood analyzers and skin therapy devices that are getting regulatory approval in
Asian countries. Going forward we will also strengthen our business activities as a solution provider supplying
experiences and services.

FeatureCSR Action Plan

Third-Party Opinion/
Corporate Data

Driving Forward as a Light Company“Light” has great potential for providing solutions to common problems aﬀecting people all over the world, such asenvironmental pollution, food shortages, high healthcare costs, and population aging. Light can create the sense of
inspiration and value that people seek.
USHIO’s traditional role as a "light company" is being transformed daily through its own eﬀorts. We will work inharmony with society through the innovation of light, contributing to the realization of an abundant society as weourselves continue to grow.
I hope you will continue to oﬀer your understanding and support for eﬀorts.
August 2017
Kenji Hamashima
President and Chief Executive Oﬃcer

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USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

CSR Management
USHIO Group Management Philosophy and CSR Management

FeatureCSR Action Plan

Third-Party Opinion/
Corporate Data

6. We shall comply with laws and regulations and carry out fair business activities in accordance withsocially accepted practices.
7. We shall fulﬁll our duties to the best of our abilities in conformity with internal regulations andstandards.
8. We shall promote environmental protection and the eﬃcient use of resources.
9. We shall carry out proactive public relations activities while respecting the value of information and

USHIO Group Management Philosophy
The USHIO Group's approach to CSR can be seen in the management
philosophy underpinning all activities of USHIO and USHIO Group
members. In 1965, the year after the Company was founded, four keyemphases were created based on the desire to make USHIO an
indispensable company for everyone by drawing on the wisdom of
employees to grow. The wording of these four key emphases has beenrevised over the years to reﬂect the changing times.
1. Build both a prosperous Company and prosperous employees.
2. Deliver products and services that are competitive in the global
market.
3. Contribute to society through superior products and innovative
research and development.
4. Expand proﬁts, corporate responsibility, and competitivenessthrough open and free-thinking business operations.

10 Action Guidelines as Members of Society
These guidelines set out an envisaged ideal that the USHIO Group should strive for, and directions for individual
employees' daily behavior toward achieving this ideal.
1. We shall aim to be a company that accepts diverse individual qualities and values and where people
work together and pursue self-learning and self-improvement.
2. We shall aim to strive for the company's sustainable growth through our innovative, proactive andprompt management.
3. We shall respect all the internationally recognized basic human rights relating to our business activities,
and endeavor to create bright, safe and pleasant working environments.
4. We shall provide high-quality, safe products and services at appropriate prices and carry out fair andequitable business transactions.
5. We shall work to earn the understanding and trust of society.

intellectual property rights of third parties.

10. We shall contribute to the development of respective regions where we conduct business as a memberof the international community.

Approach to CSRUSHIO aims to solve social issues and realize a sustainable society through products and services that use its lighttechnology. CSR activities are the management foundation of our business activities to achieve this mission, and are a
primary driver of our growth as a company.
USHIO builds good relationships with its various stakeholders through communication, and aims to develop sustainablebusinesses as the USHIO Group together with local communities and society at large.

Relationship with Sustainable Development Goals
The United Nations Sustainable Development Summit adopted the Sustainable Development Goals (SDGs) in
September 2015. These SDGs describe goals for 2030 that aim to realize a sustainable world without poverty,
inequality and economic disparity, and climate change. To realize a sustainable world, the SDGs comprise 17
Sustainable Development Goals and 169 targets, and embody a “pledge that no one will be left behind.” SDGs areuniversal goals that all countries are working to achieve, irrespective of whether they are developed or emerging
countries.

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USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

At USHIO, we are examining the following areas in which USHIO can contribute to achieving the 17 Goals. We arecommitted to contributing to the realization of the Sustainable Development Goals through the provision of products
and services that use light technology.

FeatureCSR Action Plan

Third-Party Opinion/
Corporate Data

United Nations Global Compact's 10 Principles
USHIO has declared its support for the United Nations Global Compact of principles concerning
human rights, labor standards, the environment and anticorruption. We have joined the local UN
network supporting the compact, Global Compact Network Japan, and have taken an active rolein various sectional activities, including our involvement in cosponsoring a proposal on supply
chain management as one of the participating companies. In September 2015, the UN adopted
the Sustainable Development Goals (SDGs), and amid rising interest in social issues, we areworking to promote all facets of CSR among the many other participating companies and NGOs.
To this end, we are continuing to play an active role in sectional activities for sharing information
on necessary speciﬁc measures and enhancing the activities of each company.

CSR Action Plan (Policy)
USHIO has created a CSR Action Plan (Policy) and taken steps to reinforce its CSR initiatives. Through dialogue withstakeholders, we have identiﬁed relationships between various social issues and our core businesses. To emphasize
carrying out initiatives in line with our business strategy, we have set out basic principles in our action plan, which weincorporate into the strategies of each division and department.

CSR Promotion Framework
USHIO has established a CSR Committee, which is chairedby the president. The committee decides on policies forthe whole Company relating to CSR initiatives. The CSR
Committee establishes subcommittees as needed tooversee practical implementation of the policies it has
decided, and discusses speciﬁc initiatives and ways topromote them.
At the 26th CSR Committee meeting held in May 2016,
the members reached an agreement on a new mediumterm CSR plan following a discussion about the next
initiatives to take after the previous medium-term CSR
plan ended on March 31, 2016, deciding to redouble
eﬀorts on matters that take precedence (materiality) andto broaden the scope of Group eﬀorts (boundaries).
USHIO intends to enhance corporate value from a long-term perspective through measures to strengthen its presencein ﬁelds where it aims to advance as a corporation while enhancing social contributions, and to come together as agroup determined to improve corporate value.

In formulating the CSR Action Plan (Policy), the CSR Committee and other related organizations investigated CSRrelated elements of USHIO's business activities from various angles, while giving consideration to the seven core
subjects of ISO 26000 and many other sources of guidance and guidelines. As a result, the Group's issues wereclassiﬁed under the ﬁve pillars of governance, people, quality, society, and the environment. These items are thenbroken down further into action policies. Currently, the CSR Action Plan (Policy) shows USHIO's CSR framework whileforming the underlying philosophy for business planning at each business division and Group company. The action
plan is modiﬁed each year to reﬂect the results of surveys.

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USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

USHIO's CSR Action Plan for the Fiscal Year Ending March 31, 2017 (Policy)
Five issues
Governance(Ensure transparency in sequences of businessactivities, information disclosure, compliance with laws
and regulations and international rules, prevention ofcorruption, risk management, and others)

Guidelines for initiatives for related issues
Strengthen information security
Promote business continuity management
Strengthen measures to prevent corruption

Provide information to shareholders on CSR activities
Strengthen Group CSR activities (share information,common targets, grasp needs, etc.)
Enhance disclosure of non-ﬁnancial information

Initiatives to maintain transparency on tax issues
Strengthen initiatives regarding the Corporate Governance CodePeople(Eradicate discrimination, respect diversity, respect therights of all people related to operations to survive andlive, eliminate harassment, worker health and safety,
prevention of child labor, forced labor, and slave labor,
avoid complicity in human rights infringements)

Eradicate discrimination, respect diversity to promoteroles for human resources in the company
Maintain a comfortable work environment (eliminate
harassment, ensure appropriate worker health and safety)

Promote innovation through respect for human rights,
transformation of work styles, and raising awarenessStrengthen monitoring of worker health and safety

observance of market rules and guidelines)

CSR Action Plan

Pure customer satisfaction improvement, with thegreatest emphasis on the customers' perspective
Quality target and plan development

ISO 9001 certiﬁcation for quality management
systems: transition to 2015 version and make

improvements (faster speed, slimmer organization)
Improve quality (speed up, streamline)

About the USHIO CSR Procurement Policy
USHIO is meeting its social responsibilities as a corporate citizen by supplying superior products and services to theglobal market through free and open corporate activities. For its procurement activities and in the spirit ofencouraging coexistence and prosperity for all, USHIO has deﬁned the ﬁve points below as the USHIO CSR
Procurement Policy, encapsulating its respect for laws, social norms and environmental protection.
1. Human Rights Alongside Occupational Health and Safety
2. Environmental Consideration, Green Procurement
3. Ensure Product Safety
4. BCP (Business Continuity Planning)
5. Fair and Equal Transactions, Legal Compliance

CSR Procurement Policy

CSR Procurement Plan, Achievements and Future Initiatives
Fiscal 2016 Plan

1. Positively inﬂuence suppliers (awareness raising and guidance), and rigorously
evaluate and select suppliers.
2. Collect information on laws and regulations, and build a framework for each Group
company and division to independently obtain information on relevant laws andregulations, and address them.
3. Obtain full and complete information concerning laws and regulations, and build aframework for addressing, evaluating and monitoring this information.

Fiscal 2017
Achievements

1. USHIO has educated and instructed suppliers to submit environmental data at therequested lead time. We conducted evaluations of suppliers based on new
standards.
2. USHIO obtained information concerning laws and regulations from customers,
industry bodies and suchlike, and communicated it to each Group company anddivision. Each Group company and division also obtained related laws andregulations. We ascertained the current status at each business site, and decided tobuild a system in ﬁscal 2018. We also shared information concerning laws andregulations about CSR procurement and green procurement at the Harima Divisionand the Gotemba Division (RoHS, REACH, conﬂict minerals).

Initiatives Ahead(Fiscal 2018 Plan)

1. USHIO will manage the progress and provide guidance about the plans to raise thelevel of CSR procurement at each Group company and each business division, andMatters related to strengthening the supply chain(Promote green procurement and CSR procurement,

promote activities with an awareness of the basic policy on
conﬂict minerals, practice due diligence* on human rights)
Strengthen global quality assurance system
Product safety assessment

Enhance supplier CSR monitoring
Society(Maintain relationships with local communities,
involvement with international society, contribution toeducation, culture, etc., social contributions throughbusiness such as products and services)

Foster social awareness by encouraging active
participation in social contribution activities,

community exchanges, volunteer and pro bono activities
Promote business that contributes to global social
issues such as business in emerging countries
Promote participation in volunteer activities

Environment(Disclose information on greenhouse gas and otherTargets and initiatives based on Phase Five of theand hazardous chemicals, etc.)

solutions through product development

emissions aﬀected by corporate activities, impacts on
climate change and ecosystems, consideration forresource limitations, management of dangerous waste

Third-Party Opinion/
Corporate Data

Implement human resource development to contribute tomaintaining and improving business activities over the long term
Promote work-life balance
Conduct human rights education

Quality(Realize attractive quality overall, not only in products,
but also in concepts and service provision, and including

FeatureEnvironmental Action Plan
ISO 14001 certiﬁcation for environmental
management systems: transition to 2015 version
Provide safe, secure and environmentally friendly

Reduce CO2 emissions in busines0s activities: reduce
CO2 by 3% from ﬁscal 2016 levels on a sales unit basis
Advance CSR procurement as a group
Strengthen chemical substance management

Evaluate Group progress on Environmental Action Plan
Strengthen management of waste and of recycling* Due diligence: Means paying appropriate attention, which in this case means conducting a survey and assessment of
suppliers based on the CSR procurement policy and connecting that to purchasing activities.

work to achieve the goals at each Group company and each business division.
2. USHIO will evaluate and select suppliers, and provide suppliers with guidance andeducation about green procurement.

3. USHIO will ascertain information concerning chemical substances in products, andshare information concerning laws and regulations with SCM.

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USHIO INC. SUSTAINABILITY REPORT 2017

CSR Management

President’s Message

Awareness-Raising Activities for Our Suppliers Regarding All Human Rights Associated with

Business Activities across the Entire Supply Chain

USHIO holds various CSR brieﬁngs for our suppliers about our various initiatives at the Harima Division, Gotemba
Division, and Yokohama Division, and explains the signiﬁcance for each customer's business activities of the initiatives
concerning respect for human rights (including the prevention of child labor and of forced or compulsory labor, theprohibition of discrimination and equal opportunity, the granting of the right to organize and the right to conduct
collective bargaining, the elimination of excessive working hours, the maintenance of wage levels, and the maintenanceof health and safety).
In addition, USHIO carries out awareness-raising activities about eight categories, including human rights problems, insuch ways as through the implementation of questionnaires and interviews for suppliers to conduct self-assessment
about the current situation and system at each company, future action plans and so forth. The results of thequestionnaires and their own investigation are then reﬂected in the CSR awareness-raising activities. Moreover, wehold these workshops and suchlike for our suppliers that have started new transactions.

CSR Procurement Survey
In ﬁscal 2015, USHIO conducted a CSR procurement survey (questionnaires and interviews) among 613 suppliercompanies (90% response rate) at the Harima Division and the Gotemba Division, and we conducted an evaluation of
the responses of each company in ﬁscal 2016.
In the ﬁscal 2015 survey, the evaluation criteria were expanded to include the business continuity plan, conﬂict
minerals (as human rights and labor), and information security. The requirements for each evaluation item were also
increased, and we ascertained the average points of the self-evaluation conducted by each company declined 0.7 of apoint to 3.6 points from 4.3 points in the survey carried out in ﬁscal 2013.
In ﬁscal 2018, we plan to conﬁrm the CSR procurement status of suppliers using the CSR Procurement and Selfassessment Questionnaire formulated by the Global Compact Network Japan (GC-NJ). Moreover, USHIO aims tocontinue striving to improve our mutual results by means of continuing conducting surveys and maintaining dialogues.

Results of Self-Evaluation Conducted by Each Supplier about CSR Procurement

Reason for the Decline
Increase in evaluation items and subdivisions (From 5 inﬁscal 2013 to 9 in ﬁscal 2015)
Increase in requirements for each evaluation item

FeatureCSR Action Plan

Third-Party Opinion/
Corporate Data

Checking for Conﬂict Materials
The USHIO Group uses tungsten, tantalum and other minerals to make the electrodes and ﬁlaments in its lamps. To dothis and based on our Basic Policy Statement for Conﬂict Minerals, Group companies and our suppliers are prohibitedfrom using conﬂict minerals. USHIO checks for the use of any conﬂict minerals and reports the results of its ﬁndings
to customers using the EICC/GeSI Conﬂict Minerals Reporting ledger sheet.
USHIO checks for the use of any conﬂict minerals by its suppliers at each company, and regularly updates information.
Previously, we conﬁrmed whether or not conﬂict minerals were used by the relevant suppliers. From ﬁscal 2016, wehave expanded the scope of conﬁrmation to cover identifying mines and reﬁneries.
(Conﬂict Minerals)
Conﬂict minerals is the generic term for minerals that are produced in areas of conﬂict and are a source of funding
for local armed groups when purchased. As a result, there are concerns about companies' complicity in the conﬂicts
aﬀecting the production areas of these minerals. In accordance with the clause on conﬂict minerals in the US
Securities and Exchange Commission's Dodd-Frank Wall Street Reform and Consumer Protection Act, companies
listed on US stock exchanges are legally obligated to disclose and report on the use of conﬂict minerals in theirproducts. Conﬂict minerals include tantalum, tin, gold, and tungsten produced in the Democratic Republic of theCongo or adjacent countries.

Basic Policy Statement for Conﬂict Minerals
Do not knowingly procure speciﬁed materials (tin, tantalum, tungsten, gold) from “Armed group in
Conﬂict region” of Democratic Republic of Congo (DRC) and in surrounding countries.
We also expect our partners to support this policy throughout the supply chain to ensure that only
conﬂict free materials and components are used in the parts and components we procure. We also
conduct the required investigation.
If we discover the use of these materials that are considered to be non-conﬂict free, we will stop our
procurement, and take appropriate actions to make our products conﬂict free.
October, 2014
Kenji Hamashima
President and Chief Executive Oﬃcer

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USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

FeatureCSR Action Plan

Third-Party Opinion/
Corporate Data

Medium-Term CSR Plan

History of the CSR Medium-Term Plan
In 2009, the Company formulated a medium-term CSR plan for incorporating CSR issues in management strategies. In
phase 1 (2010 to 2012), we focused our eﬀorts on “forming an infrastructure for CSR initiatives.” In phase 2 (2013 to2014), we worked to “dig deeper into CSR issues.” In ﬁscal 2016, we achieved the targets we initially set out in 2009
during phase 3 (2015 to 2016), which focuses on the “complete integration of management strategies with CSR
issues.”Deepening: Selection of Materiality
In our aim to “deepen” CSR activities, we have screened for initiatives of high importance and priority by gathering
information inside the Group, such as by interviewing members of committees involved in CSR procurement andmeasures to counter global warming as well as by conducting surveys of Group companies, while building on
interactions with external stakeholders. We took care in ranking our priorities based on an analysis of key initiatives
from both internal and external perspectives, in addition to balancing business growth and social contributions. As aresult, we have selected the following ﬁve initiatives as key issues to address.
Key issue

Medium-Term CSR Plan
For ﬁscal 2016 onward, we have created a framework for the new medium-term CSR plan in order to advance our
CSR activities one step further while aiming to develop as a company and improve the social aspects of our businessat the same time.
Targeting 2020, our new medium-term CSR plan seeks to “deepen” our stance by focusing on priority matters forboth business and social contributions, as well as “broaden” our CSR activity framework to the Group as a whole,
instead of focusing mostly on the parent company.

Green products,
green factorySpeciﬁc developments
Launch green products that aredeveloped through safe, secure andenvironmentally friendly solutions

Identify relevant products and manage
performance indicators such as sales
promotions

Chemical substance and waste
management

Reduce volume and manage volume used

Employee skill development program

Enhanced training programs, performancerelated management

In-house due diligence for humanrightsEstablish in-house due diligence for humanrights methods and manage annual
performance data

Human resource
management

External due diligence for humanSupply chain
management

As the foundation that supports our business activities, we have taken a balanced approach to enhancing our CSR
activities based on the ﬁve pillars of governance, people, quality, society, and the environment. While continuing tostrengthen the initiatives we have implemented to date, we will focus more on activities that contribute to society inaddition to our own development. We believe sustainable development would not be possible without CSR
management that suits the USHIO Group amid globalization.

Example of progressrights (mainly supply chains)

Establish due diligence for human rights
methods for supply chains and manage annual
performance data

Promote CSR procurement

Expand the scope, encouraged suppliers,
provide guidance, and evaluate and selectsuppliers

Prevent corruption

Update policies and guidebook forpreventing corruption

Create oﬃcial policy, provide guidance, andraise awarenessCorporate
governance

Respond to Corporate Governance
Code

Evaluate eﬀectiveness of the Board of
Directors, check for conﬂicts of interest, review
compensation, etc.

We put these ﬁve key issues into practice in the manner that we have included them in the CSR Action Plan, whichsets the KPIs for each ﬁscal year, and we are preparing to strengthen these initiatives.

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USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

FeatureExpansion: Share Information within the Group and Improve Performance
Based on these ﬁve pillars, our CSR Action Plan provides a framework for CSR at USHIO and a conceptual foundation
for creating business plans for each business division and Group company.
Examining the speciﬁcs of each initiative, however, there are diﬀerences in how each Group company ranks theimportance of these initiatives due to the characteristics and scale of their operations. In line with Renpo Keiei

Management, the USHIO Group aims to improve the quality of its eﬀorts and raise mutual awareness through thesharing of information about initiatives at each Group company, while respecting their decisions about the importanceof the initiatives.
Importance of Our Measures at Group Companies (From Our CSR Action Plan Survey*1)
MeasuresImportancescore*2

Implementation rateof measures

Strengthen information security

100

95%

Implement human resource development to contribute to maintaining andimproving business activities over the long term

89

95%

Pure customer satisfaction improvement, with the greatest emphasis on thecustomers' perspective

89

89%

Maintain a comfortable work environment (eliminate harassment and ensure
appropriate worker health and safety)

85

95%

Strengthen monitoring of worker health and safety

85

89%

Promote business continuity management

83

74%

Strengthen measures to prevent corruption

83

74%

Initiatives to maintain transparency on tax issues

83

89%

Eradicate discrimination and respect diversity to promote roles for humanresources in the Company

83

89%

Promote work-life balance

80

95%

*1 Implemented in ﬁscal 2017, we compiled data from 18 Group companies inside and outside Japan. The survey
asked about the status and details of initiatives based on the CSR Action Plan, as well as about perceptions of theirimportance.
*2 Answers about importance were scored (“extremely important” = 3 points, “important” = 2 points, “normal” = 1
point), with 100 as the relative ﬁgure in the case that all 18 Group companies answered “extremely important” with54 points being the highest score.

CSR Action Plan

Third-Party Opinion/
Corporate Data

Looking at a survey of the CSR Action Plan conducted as a part of information sharing about initiatives at each Group
company, we understand that a high percentage of Group companies have implemented initiatives that we regard asimportant. USHIO aims to raise overall CSR activities a notch while continuing to implement highly important initiatives.
USHIO is also committed to externally disseminating accurate information about its CSR initiatives.

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USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

FeatureUSHIO’s Promotion of Diversity
USHIO is focusing on the promotion of diversity to realize the creation of values
by diverse human resources. Moreover, USHIO aims to Create Joy and Wonder
and Continue to Grow by means of implementing a variety of initiatives, including
promoting a good work-life balance, utilizing global human resources, employing
people with disabilities, implementing a re-employment system, and encouraging
the active participation of women.

FeatureCSR Action Plan

Third-Party Opinion/
Corporate Data

Basic Policy on Diversity"Management focused on each individual employee (Diversity as a competitive strategy)"(1) Construction of a corporate culture and structure that respects the values of diverse human resources
We will diﬀerentiate from the competition from a medium-term perspective by not only implementing diversiﬁcation
for such attributes as age, gender, and nationality, but also by utilizing the qualities of having diverse experiences,capabilities and values. To do this, each individual person should ﬁrst of all express their thinking and beliefs.
Moreover, we, as the welcoming party, will facilitate the deepening of our mutual understanding by accepting andrespecting each individual's thinking.
(2) "Customization that utilizes the power of the individual and the organization," instead of "Company-wide
uniformity"

The Meaning of Diversity
To Create Joy and Wonder and Continue to Grow through the three initiatives of Increase Competitive Advantage in
Business, Boost Employee Motivation, and Our Mission in Society, USHIO understands that it must realize the creationof values by diverse human resources.

We recognize the limits of uniform rules, because business and workplace conditions, as well as the diversity of
employees, are evolving.
Even while paying attention to the uniform rules, we respond ﬂexibly to exceptional cases.
This is not special treatment, but rather reﬂects our primary consideration concerning what is ideal for theorganization and our employees.

Establishment of the Diversity Promotion Project
In July 2017, we launched the Diversity Promotion Project with the aim of further promoting "management focused oneach individual employee.” The project members are not limited to HR personnel; we included employees who wereinterested in diversity in the Company, aiming to realize activities that would unify management, HR personnel, andother employees.
By engaging employees, other than HR personnel, in diversity, we think we can implement activities that incorporate
the opinions of the relevant parties. This initiative also achieves the development of human resources who canpromote diversity as a management strategy.

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USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

Diversity Promotion System

Firstly, we will proceed with activities focusing on promoting women's participation, employing people with disabilities,
and providing career support for each employee.
In the future, we will widely promote diversity from a variety of viewpoints, aiming to be a company that enables every
employee to be active.
For further details about other activity reports, please see the CSR webpage entitled "Diversity at USHIO."

FeatureCSR Action Plan

Third-Party Opinion/
Corporate Data

12

USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

CSR Action Plan
Governance
USHIO recognizes that realizing the vision set forth in its Management Philosophy and promoting sustainable growth of
USHIO and increasing corporate value over the medium to long term will bring satisfaction to all stakeholders. In order toachieve this goal, USHIO strives to ensure the transparency and eﬃciency of corporate management and to reinforce
corporate governance for realizing speedy and resolute decision making.

Corporate Governance Framework
For more information about corporate governance, including USHIO's Corporate Governance, its Internal Control
Framework, and its transition to a Company with Audit and Supervisory Committee structure, please refer to the
explanations in “Annual Report: ESG Information.”

Compliance
At USHIO, we have established a Compliance Committee, and we work to foster a corporate culture that observes laws
and regulations, practices corporate ethics, and respects Company rules.
The Compliance Committee promotes education and training to enhance compliance and prevent violations before
they occur. USHIO aims to spread awareness of compliance through questionnaires and internal newsletters,
implementing a compliance awareness month, and holding a training conference once a year with lectures given byexperts on a variety of compliance topics.

Furthermore, we have been promoting a Company-wide drive to deal with compliance concerns, including potential
risks. To achieve early-stage solutions, we have established an internal consultation desk as well as an external
consultation and reporting desk, known as the USHIO Helpline.

Compliance with Laws and Regulations Related to the Security of Exports
USHIO carries out Company-wide management in relation to security export control under a systematic management
framework. The security export control framework, with the president and CEO as the person in charge, appropriately
reviews and approves export transactions submitted by each division and department on a daily basis to ensure that
the Company complies with legal requirements.

CSR Action Plan

FeatureThird-Party Opinion/
Corporate Data

USHIO Helpline
The USHIO Helpline has been in operation in the USHIO Group since October 2006. When any Group employee inJapan is subject to or knows about improper behavior, such as workplace violations of laws and regulations, internal
rules, ethics or other standards for behavior, he or she can use this helpline for direct communication with individuals
outside the Group to consult or report on this improper behavior. The helpline allows for quick discovery andcorrection of improper behavior together with measures to prevent recurrence. It provides access to consultations
while protecting individuals who use the helpline from any negative consequences.
All whistle-blowing statements received via an external channel are immediately reported to the chair of theCompliance Committee, who is a managing director appointed by the president. Under the direction of the chair of theCompliance Committee, USHIO aims to quickly resolve issues by conducting audits, responding to incidents, andputting in place measures to prevent a reoccurrence. To prevent this system from losing eﬀectiveness, USHIO takes
action to raise awareness of compliance through internal newsletters, training sessions and a compliance awareness month.

Information Security
USHIO handles private information of frequent customers and is entrusted with their important Company informationand other information assets in the course of its business activities. We consider it a top priority to safeguard suchinformation 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 such as raising awarenessof information security among our employees and improving our risk management systems.
This kind of management requires three interlocking initiatives: rules must be determined, a framework must be
created for observing those rules, and awareness must be raised. We implement these based on our information
security management rules and make sure they are applied uniformly and consistently for the USHIO Groupthroughout the world. In particular, USHIO believes that it is important to appropriately review the security rules inorder to adapt them to changes in the business environment, and we will also promote the development of security
policies for Group companies in the future.

Risk Management
Through its relevant departments, the Company has identiﬁed, evaluated, and speciﬁed respective risk categories
related to business execution and management, including compliance, the environment, product quality, ﬁnances, legal
matters, natural and other disasters, information management, and export controls.
To deal with natural disaster risk, we conducted a Company-wide project to formulate business continuity plans(BCPs). In addressing environment risks, we conduct periodic environment risk inspections and impact assessments tomanage them. In IT information management, we have established an organization for persons responsible formanagement to prevent leakages of secret or personal information. With regard to export control risk, a dedicateddepartment manages the risk by formulating rules and conducting specialized training, among other steps. For
ﬁnancial market risk relating to ﬁnancial instruments such as marketable securities, we manage the risk by establishingrules. In the global supply chain, including international models, we manage the risks relating to corruption, humanrights abuses, and environmental pollution as one aspect of CSR procurement.

With regard to the above risks, the Company has established the Compliance Committee, chaired by a director, and aframework for reporting to the CSR Committee.

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USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

CSR Action Plan

FeatureThird-Party Opinion/
Corporate Data

PeopleProtecting Intellectual Property Rights
USHIO INC. takes the following measures to protect its own intellectual property rights and ensure that it respects therights of other companies.
1. We will observe laws and regulations pertaining to industrial property rights, copyrights and otherintellectual property rights.
2. We will make eﬀorts to manage risk in order to prevent other companies from infringing upon our
intellectual property rights and to ensure that we do not infringe upon the rights of other parties.
3. We will strive to submit applications and obtain rights in a timely manner in line with businessdevelopment, and thus to contribute to vigorous corporate activities.
4. We will consider the overseas countries and regions in which we submit applications as well as thecontent of overseas applications in an eﬀort to enhance our overseas competitive strengths.
5. We will ensure that all employees understand management rules pertaining to employee inventions, andwill observe these rules.

Respect for Human Rights

Basic Approach
At the USHIO Group, we believe respect for human rights is a fundamental underpinning of our eﬀorts to build trust
as a corporation that fulﬁlls its responsibilities to international society.
In this regard, the USHIO Group respects international norms and guidelines, such as the Universal Declaration of
Human Rights, the UN's Guiding Principles on Business and Human Rights, the 10 Principles of the UN Global Compact(human rights and labor), the Declaration on Fundamental Principles and Rights at Work outlined by the International
Labor Organization (ILO), and ISO 26000.
We believe the following descriptions exemplify the human rights that we must protect in our business activities andour relationship with society.
Maintain a work environment that facilitates work, prevent accidents at work, and prevent work-related
injuries or diseases
Prevent child labor, forced labor, slave labor and discrimination

Initiatives to Prevent Corruption
USHIO's 10 Action Guidelines for business activities commit us to conducting fair and equitable business transactions,and we have always taken vigorous action to prevent corruption. In 2010, USHIO became a signatory of the United
Nations Global Compact's 10 Principles, which include provisions for preventing corruption, and we support theprevention of corruption and bribery in a variety of business activities.
In our operations, we are concerned about the risk of bribery to promote sales of laboratory instruments, light source
products and medical equipment to universities and government agencies. In sales of medical equipment in particular,
we stress the importance of maintaining proper relationships with our customers, namely medical practitioners. USHIO
regularly trains its sales staﬀ on transparency guidelines with the aim of preventing corruption.

Restrict excessive work hours
Preserve equality and non-discriminatory practices, respect diversity and eliminate harassment
Respect for freedom of association and the right to collective bargaining and ensure a minimum wage and alivable wage
Respect for fundamental human rights as deﬁned by the Universal Declaration of Human Rights, such as theright to life and liberty
Protect the rights of children as vulnerable members of society

Conducting Human Rights Education
Respect for the human rights of stakeholders both inside and outside the Company begins with the actions taken by
our employees. In order to instill a corporate culture that respects human rights, USHIO conducts human rights
training that raises awareness of human rights among its employees.

Occupational Health and Safety
USHIO makes concerted eﬀorts to ensure workplace safety and health with the aim of providing a safe andcomfortable work environment for its employees. USHIO has implemented systems for the management of safety andhealth that are optimized for the conditions of each business site. At each business site, USHIO has assigned expert
staﬀ as required by law, such as industrial physicians and ﬁre prevention managers, established occupational healthand safety committees, set up subcommittees consisting of specialists, and taken initiatives to address work-relatedrisks. USHIO's Business Auditing Department conducts assessments of occupational health and safety. A system has
been put in place so that matters of concern that arise from these assessments are reported to top management
through the Compliance Committee, which is chaired by a member of the Board of Directors.

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USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

CSR Action Plan

FeaturePreventing Work-Related Accidents

Third-Party Opinion/
Corporate Data

Human Resource Vision

Safety patrols are conducted at each oﬃce and worksite, and we take preventive countermeasures in sequence after
identifying potential risks that result in serious injuries. We are also switching to alternatives to organic solvents thathave been implicated in health problems.

Based on the corporate philosophy of “building both a prosperous company and prosperous employees,” we aim to
unite “business growth” and “fulﬁllment at work.”

Frequency of Work-Related Accidents*
Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

0.00

0.00

0.00

0.26

0.00

* The rate of lost-time injuries indicates the frequency of occupational injuries, based on the number of injuries or fatalities caused by work accidents
per one million work hours. The number of injuries and fatalities caused by work accidents during a certain period is divided by the total number ofhours worked over the same period, and multiplied by one million to derive the rate.
(At USHIO, hitherto there have been no occurrences of major accidents related to fatalities or threatening human lives during work operations.)

Information about the total number of occupational safety training sessions (foreman training) conducted at eachbusiness site, as well as the implementation status as of the ﬁscal year ended March 31, 2017, is shown below.
(Currently, about 12 hours of training is given to each person.)Image of Human Resources and Requirements

Occupational Safety Training Sessions (Foreperson Training)

Three business sites (Harima, Gotemba,
Yokohama)

Total number ofparticipants

Number of participants in ﬁscal
2017

251

14

Human Resources Development

Human Resource Development Based on USHIO's Human Resource Vision, Image of Human

Resources Required by USHIO, and Requirements

USHIO's management philosophy is to “build both a prosperous company and prosperous employees.” To realize thisphilosophy, USHIO has set out a Human Resources Vision explaining the desired characteristics for employees, andhas clariﬁed and documented the image of human resources required by USHIO and conditions for human resourcesin order to realize the vision. We have also established an education system designed to foster such human resources
and accelerate the growth of each employee.

Professional personnel who have "will" and "passion," respect diverse values, and continue to collaborate and take onchallenges
Requirements

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USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

Education and Training Systems

FeatureCSR Action Plan

Third-Party Opinion/
Corporate Data

Young Executives Group
This is one of our systems for nurturing future management personnel. Members of the group are chosen from an
openly canvassed pool of applicants, typically young employees around 30 years of age from Group companies. There
are ﬁve target criteria: a dream, strategy construction ability, ability to act, collaboration, and ability to work in a global
setting. The participants learn theoretical knowledge, such as management strategy, and tackle speciﬁc initiatives
relating to actual management issues. They undertake these activities while exchanging opinions with upper
management, external executives, and experts, among others. Through this system, USHIO provides these highly
motivated young employees with opportunities to develop their career paths.

Occupation-Based Training
As part of a commitment to support training closely aligned to worksites, each division conducts on-the-job and oﬀthe-job training tied directly to speciﬁc occupations. In addition to enhancing specialized skills, this approach boosts
motivation, promotes improvement eﬀorts through small group activities, and encourages communication as well as
information sharing.
Moreover, the Technical Training Committee and Sales Development Committee, applied horizontally acrossdepartments, support the mindset formation, knowledge acquisition, and skill enhancement needed by technological ormarketing professionals.

Big Sister and Big Brother System
The Big Sister and Big Brother System is a long-running training system that has existed for more than 30 years at
USHIO for training new recruits. During the ﬁrst year of employment, veteran employees act as one-on-one guidancecounselors for new recruits to back them up. Female mentors are called Big Sisters and male mentors are referred toas Big Brothers. In addition to providing guidance about daily work activities, they support the growth of new recruits
by helping them solve issues related to their corporate work lives and any personal struggles. The employees selected
to be Big Sisters and Big Brothers also undergo training. The Big Sister and Big Brother System, in combination withother initial training for new recruits, has led to high retention rates of new employees in their third year (91.6% for
new employees that joined out of college in ﬁscal 2015, as of March 2017).

Human Resource Strategy Division Training Center
The current Training Center formed as a result of a technician training course
we started in 2012, and today it's function is to nurture engineers. Originally
expected to perform an internal function of enhancing and diversifying thebasic skills of USHIO technicians who contribute to society through opticaltechnology, the Training Center now endeavors to provide opportunities toacquire technical knowledge in a broad range of ﬁelds. These include technicalcourses such as technical drawing CAD, and programming, as well as quality
control and PC skills such as use of MS Word and Excel. In ﬁscal 2017, theCenter started providing education to Group companies in Japan as well,helping to raise the technical ability of the entire Group.

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USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

Disclosure of Annual Employee Training Hours and Costs (USHIO INC.)

Third-Party Opinion/
Corporate Data

CSR Action Plan

FeaturePeople Taking Childcare Leave

The number of hours spent training employees at the Company, centered on training to improve their skills, and theamount spent on this training is detailed below for ﬁscal 2016 and ﬁscal 2017.
Fiscal 2016

Fiscal 2017

Total amount spent* 1¥88,630,000¥80,680,000

Total time spent training* 2

43,445 hours

34,840 hours

Total number of people who received training

1,834 people

2,144 people

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

Men

4

3

5

6

Women

29

25

22

22

Total persons

33

28

27

28

USHIO's Work-Life Balance Support System*1 The total amount of education outsourcing costs, venue costs, and other expenses paid externally.
*2 Total time spent for skill improvement training, which includes the aforementioned support for self-development,
the Young Executives System, level-speciﬁc training, occupation-based training, and training programs for new
recruits. The total time excludes training for individual purposes, such as training for occupational safety andhealth, training in compliance, and various training programs according to work role.

Work-Life Balance
Understanding Appropriate Working Hours Together with Measures and Responses to

Support Programs
USHIO aims to be able to ﬂexibly accommodate diverse values and work styles regardless of employees’ lifestyles andgender. As part of this, we have a support system for childcare leave that oﬀers much more than the legally required
level of support.
As an additional support for employees balancing parenting with work, we uploaded the Work-Life Balance Handbook
on our intranet portal for employees. The handbook contains information on programs for balancing work, as well as
information on childrearing and maternal welfare, how managers should respond, and other tips for employees who
would use the programs and for their managers.
We have also enhanced the work environment to enable people to balance work and parenting while encouraging themto review their way of working in order to achieve a good work-life balance. For example, we conducted “no overtime”
days and put up posters to promote them, and organized visiting days for children and family day events. The ratio of
women returning to work after taking maternity leave is virtually 100%, and several male employees also take childcare
leave each year.
Consequently, for the fourth time we earned the Kurumin certiﬁcation as a company that supports the raising ofchildren under the Act for Measures to Support the Development of the Next Generation.

Working Long Hours

USHIO works to understand what appropriate working hours are and enacts measures and responses to working longhours with the aim of realizing its management philosophy of “building both a prosperous company and prosperous
employees.”
Examples of Speciﬁc Initiatives
Visualization of the time employees spend in the workplace (combining the times employees arrive and leave
as registered by card readers on the web system).
Using the web system to make automatic comparisons of each employee's working hours and agreements
made regarding overtime and working on holidays, and to strengthen each employee's and theirdepartmental manager's control over long working hours.
USHIO exercises thorough management, not only by implementing the proper operation of the Ministry of
Health, Labour and Welfare's integrated measures for the prevention of health problems caused by
overwork, but also by applying standards about working hours and health management that are even stricter
than those set by the Ministry of Health, Labour and Welfare.
As a result of these initiatives, average monthly overtime per employee in ﬁscal 2017 amounted to 12 hours, adecrease of about 25% compared with ﬁscal 2016. Furthermore, from the second half of ﬁscal 2017, we have beenpromoting working outside and eﬃcient work execution in a bid to reform work styles and increase productivity. The
average number of statutory overtime hours worked per month during the second half of ﬁscal 2017 was 9.3, asigniﬁcant decrease of around 40% (15.2 hours -> 9.3 hours) from the second half of ﬁscal 2016.

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USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

CSR Action Plan

FeaturePercentage of Paid Vacation Days Used

Third-Party Opinion/
Corporate Data

World Café

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

68.5%

68.3%

72.8%

74.0%

In ﬁscal 2015, employees conceived and led the World Café project, which aims to achieve a “vibrant workplace with ahealthy corporate culture.” The goal of the World Café is to draw attention to the importance of communication byhaving fellow participants who do not know each other well come together in a relaxed atmosphere, engage in dialogue
about speciﬁc topics, and talk openly with one another.

Communication

Communication with Lunch
At USHIO, the president has lunch meetings with employees in a bid to facilitate communication in a casual setting.
Under an initiative started in ﬁscal 2015, USHIO holds “Communication with Lunch” meetings to expand the scope ofthe original lunch meetings to include business managers and facilitate communication between as many employees
and managers as possible.
This initiative provides the president and other members of the management team with an opportunity tocommunicate directly about the Company, the direction of business, and their thoughts and ideas about them. At thesame time, it allows employees to get to know management. The lunches are a valuable time, where participants canhear about things that they usually don't hear, from diﬃcult topics regarding the organization and management tomore private themes such as personal approaches to work and work styles and ways to learn English.
“Communication with Lunch” Meetings Held and Number of Participants
Lunch hostNumber of lunches held

Number of participants

President

10

47

General managers, etc.

31

147

Total

41

194

Marshmallow Building Event (Action 2020)
Launched in ﬁscal 2015, Action 2020 is an ongoing action plan to improve both the workplace
corporate culture and the mutual communication between employees.
Marshmallow Building was one of our activities in ﬁscal 2017 that aimed to increase
self-initiativeness through teamwork. The name of the new activity Marshmallow Building has
been made from the name of the existing activity Marshmallow Challenge, which is a game heldaround the world to improve teamwork, and from the phrase Team Building. Company
employees play fun games while learning about what a team is through the games, the necessityof teams, how to build eﬀective teams, and the importance of each person's role in a team.
Marshmallow Challenge is a game that quickly caught on around the world after Tom Wujec
talked about it at a TED Talks event. Teams work together toward the same goal, nurturing
teamwork. The rules are simple. The participants use marshmallows, dried pasta, tape, string
and scissors to create the tallest, self-standing tower they can. The team with the tallest towerwins.
At our Tokyo oﬃce, six teams with a total of 22 people participated in a game of Marshmallow
Building (two people were absent), battling it out to build the tallest tower. At the Yokohama
Division, one team managed to break the world record for the tallest tower, causing quite a stir.

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USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

FeatureCSR Action Plan

Third-Party Opinion/
Corporate Data

Quality

Quality Assurance Divisions
USHIO has a system for improving the eﬃciency and speed of its quality management system, and started newactivities in ﬁscal 2016. We will maintain our mechanisms for swiftly responding to customer needs while meeting therequirements of ISO 9001. We will aim to achieve radical innovation not bound needlessly to rules and ﬁrmly anchoredin front-line realities, as we strive to achieve even higher levels of customer satisfaction.
We adopt best practices for ensuring quality from the accumulated expertise of each business division throughcollaboration between the Quality Assurance Division of each business division. We have also established quality
management systems based on legal standards in the medical equipment business.
By strengthening our ties with overseas production aﬃliates and Group companies, we aim to improve the level ofquality assurance throughout the entire USHIO Group.

Quality Management System and Framework
Based on its management philosophy, USHIO has created quality policies. As the person in charge, the president and
CEO designates the people in charge of quality at the various divisions and departments. USHIO also continually works
to improve quality by applying standards such as ISO 9001 certiﬁcation for quality management systems.

The manga has also been translated into English and Chinese and sent out so that all those involved in USHIO's productquality Group-wide, which includes overseas bases, can develop greater awareness. The manga aims to help maintainstable high quality in all USHIO products as well as to contribute to a higher level of customer satisfaction.

Product Development Related to Biomedical QOL Improvement
The TheraBeam® UV308 excimer light phototherapy device, which uses ultraviolet light to treat skin disorders, was the
Biomedical Business Division's ﬁrst product. Since then, USHIO has obtained the legally required permits and expanded
into other business ﬁelds, ranging from medical equipment to external diagnostic reagents.
Moreover, together with a Group company and a clinical diagnosis company, USHIO has launched a blood analyzer
business for the early detection of risks for contracting colorectal cancer and diabetes, diseases that are aﬄicting an
increasing number of people. These risk analysis operations can lead to the preventative treatment of diseases byhalting their progress, thereby improving quality of life and reducing medical expenditures.

Customer Service Center Initiatives
At our Customer Service Center, we take the customer's viewpoint and prioritize stable operation of customers'
equipment and customer satisfaction. We work to provide them with conﬁdence and safety, on time, while continuing
to take various measures to ensure that we retain their trust and reliance.
Recently, more and more of the end users for our equipment products are spread throughout the world, so we aretaking steps to enhance our local service systems through links with our bases in the US, China, Taiwan, and South

Korea. While strengthening our local service systems, we will seek to provide enhanced proposal-based services. We
will continue striving to enhance service products and provide the value that customers require to increase customer
satisfaction even further.

Creation of Business Models with IT
Using Manga to Raise Group-Wide Quality Awareness
Lamps, which are USHIO's main products and are widely used by customers in cinema
equipment, projectors and lighting, are produced in a variety of diﬀerent places, including
at overseas bases. Great care needs to be taken to ensure that there are no defects inthese products as it may have an incalculable impact on the lives of people.
Amid these conditions, USHIO's Light Sources Division issued an educational manga comic
booklet called “Quality First” in ﬁscal 2015 to raise awareness. The manga uses a story
envisaging a problem occurring in a cinema projector lamp to show how a production line
employee's simple slipup can end up having a variety of eﬀects on many people, including
the ultimate end user. This is a tool that enlightens through prompting understanding theeﬀects of actions, and it is already being used.

In ﬁscal 2017, USHIO reorganized its IT division. In the ﬁelds of the administration of internal IT systems, security andeducation, USHIO has reorganized and further strengthened its organization, including by updating platforms that
contribute to business, adding roles for adapting to new business models and promoting innovation through internalbusiness process reforms.
As new added value for existing business models, USHIO has become aware of automation with IT solutions, andstarted activities aimed at creating solutions to enhance productivity and quality for the IoT business, and for its
customers that possess manufacturing sites.

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USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

FeatureCSR Action Plan

Third-Party Opinion/
Corporate Data

Environment

2020 Environmental Vision
The USHIO Group is working to realize a low-carbon, recycling-oriented, biodiversity-preserving society by the year
2020. We have set these three goals as our 2020 Environmental Vision, and we have formulated an Environmental
Action Plan to achieve them through our business activities. In ﬁscal 2017, USHIO started implementing Phase Five of
the Environmental Action Plan, which continues through to the ﬁnal year of the 2020 Environmental Vision. USHIO has
also begun considering its new vision for the year 2030.

Phase Five of the Environmental Action Plan
Phase Five of the Environmental Action Plan was drafted by back-casting from the 2020 Environmental Vision andconsidering the issues under Phase Four, data analysis, and many other elements. Fiscal 2017 is the ﬁrst ﬁscal year of
this three-year plan. Phase Five of the Environmental Action Plan will continue to focus on the key areas of green
products, reducing CO2 emissions at business sites, CSR procurement, and resource recycling. In addition, as an
initiative to shift to the 2015 version of ISO 14001, the Company is adding initiatives to prevent these eﬀorts fromlosing their signiﬁcance and ensure they are implemented in an eﬃcient and businesslike manner. In particular, withregard to green products, USHIO is planning to increase corporate value by adding social demand aspects such as
safety and security in addition to environmental considerations.

Phase Five of the Environmental Action Plan (Fiscal 2017 to Fiscal 2019)

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USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

Third-Party Opinion/
Corporate Data

CSR Action Plan

FeatureImplementation Status of Phase Five of the Environmental Action Plan
Environmental Themes and Activities
Percentagesof green
products(GP) andSuper Green
Products(SG) within
new products

Promote theinitiative
within theGroup
Developproducts
that
contribute toboth theenvironmentand society

Fiscal 2017

Fiscal 2018

Fiscal 2019

TargetsSix or more products

GP ratio: 75% or higher
SG ratio: 10% or higher

GP ratio: 75% or higher
SG ratio: 10% or higher

Results

12 products

Targets

SG certiﬁcation of one
product or more

Results

SG certiﬁcation of 2
products

Objective:
Provide safe,
secure andenvironmentallyconscious
solutionsTargets

Clarify deﬁnition ofsolutions and scope of
application

Entrench andpromote GP
activities

Results

Targets

Results

Proposed and managed
energy conservation
activities led by the six
main sites. Increased by
7% on a sales unit basis

Reduce CO2
emissions inbusiness
activities

Objective:
Reduce CO2
emissions by
3% from ﬁscal
2016 on asales unit basis

Targets

Ascertain the status of
two sites wherebusiness changes haveoccurred

Visualize
conditions
according tobusinesschangesResults

Ascertained the statusof two sites that had
merged or transferredfacility management

Targets

Autonomous target
management at sales
sites and small-scale
sites

Results

Implemented
autonomous
management

Autonomous
reductions

Fiscal 2017

Fiscal 2018

Fiscal 2019

Targets

Organize and evaluate
functions and target
levels at each site,
agree on target levels
and formulate plan foreach site

Conﬁrm and follow
up on plan progress
at each site
Evaluate supply
chains and provide
guidance andeducation

Conﬁrm and follow
up on plan progress
at each site
Evaluate supply
chains and provide
guidance andeducation

Results

Self-evaluations
conducted at Groupsites, and activities
implemented in linewith levels

Targets

Establish structuresand systems for green
procurement andmanagement ofchemical substances in
products

Administer, maintain,
and manage basedon the system

Administer, maintain,
and manage basedon the system

Results

Improved systems for
information aboutchemical substances
and about laws andregulations, andpromoted information
sharing

Targets

Ascertain and share
information about laws
and regulations with
SCM

Ascertain and share
information about
laws and regulations
with SCM

Ascertain and share
information about
laws and regulations
with SCM

Results

Ascertained and shared
information about laws
and regulations

Targets

Share information
about laws andregulations
Ascertain status of
ISO initiatives at
each company andprovide support

Share information
about laws andregulations
Ascertain status of
ISO initiatives at eachcompany and provide
support

Share information
about laws andregulations
Ascertain status of
ISO initiatives at
each company andprovide support

Results

Completed transition at
4 of 19 target sites

Targets

Conduct chemicalrisk assessment
Ensure chemical
information is
obtained properly
Reduce use of water
resources

Administer, maintain,
and manage basedon the system
Continue chemicalrisk assessment
Reduce use of water
resources
CDP water analysis

Administer, maintain,
and manage basedon the system
Continue chemicalrisk assessment
Reduce use of water
resources
Conduct water risk
self assessment

Results

Conducted chemicalrisk assessment
Revised andformulated rules foracquisition ofchemical substances

Conduct andanalyze CSR
surveys
Green ProductCommittee activities at
2 Group companies

Registration ofassessment results:
100%
Reformulate
standard
documentation:
consider revising 2
or moreenvironmental factor
standards
Conduct external PR
Formulated Group
implementation rules

Start of GP and SG
creation at initiative
development points

CSR
Procurement

Objective:
Advance CSR
procurement
as a group

Formulate newstandards onenvironmental factors

Administer
according to
the USHIOGroup's
Green
Procurement
Standards

Shareinformation
about
harmfulchemical
substances in
products

Number of standard
document
reformulations: 5
Discussed eﬀective
approaches to PR on
GP activities
Reduce by 1% fromﬁscal 2016 on a sales
unit basis
Reduce CO2 emissions
from distribution by 1%
from ﬁscal 2016 perunit of shipments

Managemeasures atmain sites

Environmental Themes and Activities

Reduce by 1% fromﬁscal 2017 on a sales
unit basis

Ascertain the status ofbusiness-as-usual, andset reduction targets
and measures for thefollowing year

Autonomous target
management at sales
sites and small-scalesites

1. Shareinformation
about laws
andregulations

Reduce by 3% fromﬁscal 2016 on a sales
unit basis

Implement reduction
measures

Autonomous target
management at sales
sites and small-scale
sites

Chemical
substance
management,
resource
recycling,
and biodiversitypreservation

Objective:
Strengthenchemical
substance
management

2. Work on
issues for ISO
improvement
at eachcompany(loss ofsigniﬁcance,
eﬀectiveness,andimprovementof internal
audits, etc.)

1. Reinforce
managementfrom input tooutput ofchemical
substances
2. Reduce
use of water
resourcesand evaluate
water risks

21

USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

CSR Action Plan

FeatureReducing the Amount of Harmful Chemical Substances UsedOUTPUTIn ﬁscal 2011, our eﬀorts to reduce the amount of harmful chemical substances used included conducting a survey ofthe status of usage at each business site. Based on the survey ﬁndings, we decided to reduce our use of volatileorganic chemicals (VOCs) in line with the recommendation of four electrical machinery and electronics associations inJapan. Since ﬁscal 2012, we have been reducing the consumption of VOCs by means of reviewing our production
facilities.

Atmospheric Emissions

Waste

Fiscal 2015

Fiscal 2016

Fiscal 20178.70 t7.00 t6.80 t7.00 tTransportation

Environmental Performance Data Highlights

INPUT

EnergyManufacturing

Water (m³)
Chemicals (t)Transportation

Fuel (L)Fiscal2017

Fiscal2016

Fiscal
2015

772,013749,047

656,772

7,135

3,538

5,811

1,104,525

769,236526,320

LPG (kg)

22,956

26,67133,752

LNG (kg)

136,703

114,014113,022372,806

321,126

236,000

8.0

8.2

8

254,852

194,588

169,201

Town gas (m³)

Fiscal2015

38,99337,61826,136

Total output (t)

1,271

1,488

996

Total output (t)

214

268

196

CO2 (t-CO2)

351,756

305,086

251,728

7,900

6,062

8,285

COD (kg)

3,829

3,537

3,634

Chemicals (t)

7.0

7.0

7.0

Atmospheric emissions (t-CO2)

391

466

Period: April 1, 2016 - March 31, 2017

Each year we numerically determine the environmental load of the entire USHIO Group, and use these ﬁgures toreduce environmental load, and also check the eﬀectiveness of environmental management. Load information for eachsite is constantly tabulated and monitored using ECO-SYS (Environmental Management Information System), and thisaids reduction of loads through real-time collaboration with each site. Going forward, the Group is working to better
understand environmental burden not only in terms of business activities, but also from a carbon management
perspective.

Electric power (10,000 kWh)Fiscal2016

Sewage (m³)
SewageFiscal 2014

Fiscal2017

BOD (kg)

Manufacturing

Amounts of Chloroform Usage

Energy (GJ)

Third-Party Opinion/
Corporate Data

Scope: Companies covered by consolidated environmental management
Chemicals (PRTR): Total volume of chemicals emitted or moved* Electric power to CO2 conversion factor: In Japan: Applied separately for each electricity provider by the Japanese

Ministry of the Environment; Overseas: emissions factors supplied by the electricity provider for each site. (Factors
as of April 2010 used for all ﬁscal years).
* No greenhouse gases other than CO2 were emitted.
* Fuel is used to transport products (by truck) and by people using commercial vehicles (company cars) etc.,

22

USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

Third-Party Opinion/
Corporate Data

CSR Action Plan

FeatureSociety

USHIO Group Support for Culture and Learning

The USHIO Foundation
The USHIO Foundation was established in 1994 to commemorate the 30th anniversary of the founding of USHIO. As
globalization progresses, the foundation will contribute to society by assisting the development of the next generationof human resources, including overseas students, who will be responsible for leading the world in the future, andpromote further interaction and mutual understanding between Japan and other countries.
In ﬁscal 2017, the foundation provided scholarships to 46 graduate students (including overseas students) and 13
students in specialized courses at colleges of technology. So far, 549 scholarship students have been supported, andwe continued to focus on calling for scholarship applicants from schools in areas aﬀected by the Kumamoto
Earthquakes.

Establishment of a Scholarship Fund at Suzhou University in China
USHIO (SUZHOU) CO., LTD. signed an agreement in January 2009 with China's Suzhou University to establish theSuzhou University USHIO Scholarship Fund. Every year, a number of students are awarded scholarships. To date, a
total of 230 students have beneﬁted from the Suzhou University USHIO Scholarship Fund.
Accumulated Number of Students Awarded Scholarships
Fiscal year

Number of men

Number of women

Total

Fiscal 2010

15

20

35

Fiscal 2011

12

23

35

Fiscal 2012

12

23

35

Fiscal 2013

11

24

35

Fiscal 2014

5

15

20

Fiscal 2015

8

12

20

Fiscal 2016

7

18

25

Fiscal 2017

7

18

25

Total

77

153

230

Successful scholarship recipients at a certiﬁcate bestowal ceremony

Meeting together with the scholarship students

23

USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

CSR Action Plan

FeatureThird-Party Opinion/
Corporate Data

CHRISTIE DIGITAL SYSTEMS USA, INC.

Relationship with Society

Sponsor of Student Film Festival at Local College
Christie USA helps as a sponsor for a student ﬁlm festival held every year at the local college in Cypress City. Cypress
College, a two-year community college, is located a few miles from Christie USA. The Media Arts Design Departmentoﬀers 27 courses in the following ﬁve specializations in its digital cinema program.

USHIO AMERICA INC.
Participation in Food Drive with Orange County Food Bank
Orange County in California, the location of UAI's head oﬃce and the Irvine Plant, is famous for its portrayal in movies
and TV dramas of people living extravagant lifestyles, giving the county an image as a wealthy area. On the contrary,
Orange County is one of the top ten counties in the U.S. in terms of children who do not have enough food, and one infour people are living in poverty according to Orange County Community Indicators 2015. It is also an area with highrents, as in Los Angeles County. Even after working every day, many families do not have enough money to put foodon the table. With the aim of helping these people, we held a food drive at the UAI head oﬃce for a second year tocoincide with the Earth Day events. In the food drive, companies, churches and other organizations collect canned
goods and other preserved foods and donate them to the Food Bank, where people down on their luck can receive thefood for free. UAI delivered three large boxes of canned food, pasta and pouched food donated by employees to theOrange County Food Bank. Food Banks receive funds from government organizations and donations from variousorganizations and individuals, and then engage in organizing volunteer activities.
We intend to make food drives like this an integral part of our CSR activities. Next year, we will make an extra eﬀort toget as many employees as possible to participate in the food drive, such as by calling everyone out to the Earth Day
event.
Toy Drive a Major Success for a Second Year!
UAI's Toy Drive, which was launched last year, asked for donations again this year for the
Spark of Love Toy Drive organized by a local TV station and the ﬁre department. Last year
alone, this toy drive collected half a million donated toys. Although less eﬀort was put into
spreading word around the company this year about the toy drive, quite a large number of
employees cooperated this year, perhaps because it was the second year we did it. The
donation boxes in the front lobby were brimming with toys two days before the drive ended, so
we quickly put out more more boxes, which also became full very quickly. A wide variety ofitems other than toys were also donated, including sports items, clothing and shoes. When wewere loading the donated toys in our cars to take them to the ﬁre station, we were warmly
moved by the generosity of everyone for making the eﬀort to buy the toys for children. In the
U.S., year-end holidays are truly the season of giving.

Digital Cinema Production
Digital Cinema Techniques & Technologies
Cinema & Video Post-Production Basics
Multimedia Production Basics
After taking these courses, students who graduate are qualiﬁed to try to enter a four-year university or art college, or
start working with the cutting-edge skills they learned.
Christie USA provides the prize money for four awards among the many awards at theﬁlm festival, which include Best Script, Best Director, Best Cinematography, and Best
Editing. A total of 52 ﬁlms (including live action and animation) are nominated, and 24
ﬁlms are shown to the public at the campus theater. Community college students and highschool students in Orange Country, where Cypress City is located, can participate in theﬁlm festival. All of the awards are divided into college and high school divisions, and each
one comes with a trophy and prize money. Voting on the best ﬁlms is done by both graduates and faculty. Each movie
is judged for its script, cinematography, direction, editing and acting. UAI's Senior Director of the Personnel
Department, Anna Escudero, and EMS Manager Pamela Rossman attended the awards ceremony and presented thetrophies to the recipients of the four aforementioned awards. The award-winning ﬁlms were quite creative andwonderfully entertaining to watch. We are proud to help budding ﬁlmmakers in our community.

CHRISTIE DIGITAL SYSTEMS CANADA INC.
Toys donated by UAI

In the U.S., there are many ways people can get involved in activities for the greater good, donating cash, goods andtime as volunteers. At UAI, we encourage our employees to participate in the annual Food Drive and Toy Drive. Of
course, employees willingly participate on their own volition, and they have diﬀerent views and ways on how to donate.
For now, we hope that our employees become more interested in giving back to their communities.
We plan to hold the Toy Drive every year as a part of our CSR activities at UAI.

Digital Cinema Art & Industry

Amazing Race
In October 2017, Christie Canada held the Amazing Race Around the World Challenge asa part of a United Way campaign held every year. United Way is a non-proﬁt organizationthat attracts a large amount of donations to fund volunteer and NPO activities.
Every year, Christie Canada holds enjoyable and entertaining events to collect donations
for supporting United Way as a way of giving back to the community. United Way
promotes the physical and mental health of everyone living in their communities by deepening understanding andmobilizing the caring power of communities to foster healthy families. United Way's three main objectives are tonurture strong communities, help children achieve their goals, and give people a chance to end poverty.
A total of about 40,000 Canadian dollars (about ¥3.44 million) was collected from employee donations via thecampaign this year. It was promptly given to United Way.

24

USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

USHIO TAIWAN, INC.（UTI）
Donation of Used PCs to Indigenous People
Most companies dispose of their equipment and other assets when their useful lives have ended, but UTI takes adiﬀerent approach. In October 2016, UTI donated around 30 used PCs to elementary schools for indigenous people,
which have few resources to purchase new PCs. The elementary schools are located in an area called Taitung that issix hours by car from Taipei, the capital of Taiwan. This mountainous region is geographically diﬃcult to develop andhas relatively few natural resources. The schools there have not made much progress using PCs and other digital
educational resources in the classroom. Once we researched the area and understood their needs, we launched theECO Project. Before donating the PCs, we had PC experts reformat the hard drives to prevent any information fromleaking, and then we gave the cleaned up PCs to the schools.
The school teachers were waiting for UTI staﬀ to arrive with the PCs, and helped unload the boxes. Although a fairdistance was traveled, we were moved by seeing the students happily looking at the sight of being surrounded by amountain of PCs.
The school principal conveyed his appreciation for the donations, and send an oﬃcial letter of thanks from the school
to the president of UTI a month later. This successful project for giving back to the community carried a greatsigniﬁcance for UTI.
The Ushio Group's policy of contributing to the development of regions was fulﬁlled by UTI.

FeatureCSR Action Plan

Third-Party Opinion/
Corporate Data

25

USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

Third-Party Opinion
Public Resources Foundation
Executive Director
Sachiko Kishimoto
ProﬁleA graduate of the School of Education, University of Tokyo, Ms. Kishimoto
founded the forerunner to the foundation, NPO Public Resources Center, in
2000. She assumed her current position in 2013, following work at a privatesector think tank and studies in the US. Her present work involves, among otherareas, the development of socially minded capital ﬂow, including donations, NPOfunding and social investment, as well as CSR. In addition to membership in the
Cabinet Oﬃce as an Associate Member of the Council for Utilization of Dormant
Deposits, she serves as director of several NPOs, including the Japan Fundraising
Association and the Japan Association of Charitable Organizations.

Like last year, I have read USHIO's Sustainability Report 2017 with the intention of oﬀering an opinion of the report.
The USHIO Group has launched a new CSR medium-term plan starting from ﬁscal 2017. In the CSR medium-term plan,
USHIO has identiﬁed ﬁve key issues (materiality): green products and green factories, human resource management,
supply chain management, the prevention of corruption, and corporate governance. Every year, the Company sets
KPIs for these initiatives and reﬂects them in the CSR Action Plan. I continue to favorably assess how the Company
has implemented the operation of PDCA cycles around material issues, and look forward to seeing progress reports
issued in the future.
In 2010, the USHIO Group declared its support for the 10 Principles of the UN Global Compact, and has been working
on compliance with the 10 Principles, including the elements of human rights and labor. I have high praise for the CSR
medium-term plan, which clariﬁes initiatives in due diligence for human rights from both an internal human resource
management perspective and an external supply chain management perspective, and I expect USHIO to disclosedetails about the progress made.
Regarding diversity in the feature section of this report, USHIO has focused on diversity as a competitive strategy. I
appreciate that the Company aims not only to implement diversiﬁcation for such attributes as age, gender, andnationality, but also to transform diversity into competitive strength. I believe that this human resources strategy of a
global company will have much potential in the future. I have high praise for the increase in the percentage of female
employees, and the introduction of the Job Return System for rehiring employees who had left work. At the same time,
it is disappointing that the ratio of employees with disabilities has fallen slightly below the legally mandated ratio, and I
expect USHIO to make further improvements.
In this report, the Company has introduced and once again clariﬁed its Human Resources Vision, and the image andrequirements of the human resources required by USHIO. The Company also describes the education system it has
designed to foster such human resources. I can appreciate that USHIO has developed a variety of mechanisms tomaximize the ambitions and motivations of each and every employee.

FeatureCSR Action Plan

Third-Party Opinion/
Corporate Data

Regarding conﬂict minerals, USHIO has established its Basic Policy Statement for Conﬂict Minerals, under which theCompany checks for the use of any conﬂict minerals in the USHIO Group and reports the results of its ﬁndings tocustomers. I have praise for the fact that USHIO not only conﬁrms whether or not conﬂict minerals are used by eachsupplier, but has also expanded the scope of its conﬁrmation survey to cover mines and reﬁneries.
Regarding supply chain management, average self-evaluation scores by suppliers declined in the 2014 CSR
procurement survey, so I had expected USHIO to strengthen its commitment to help its suppliers in this regard. In
ﬁscal 2018, USHIO plans to conﬁrm the CSR procurement status of each supplier by using the CSR Procurement and
Self-Assessment Questionnaire formulated by Global Compact Network Japan (GC-NJ). In the future, I hope that
USHIO will continue these actions with its suppliers, and follow up on the results.
Regarding governance, USHIO has transitioned from a company with an Audit & Supervisory Board structure to acompany with an Audit and Supervisory Committee structure. The Company has strengthened its supervision function
with a majority of the members on the Board of Directors now being independent outside directors. At the same time,
the Company delegates business execution authority to executive oﬃcers. I favorably evaluate that the Company ismaking eﬀorts to accelerate decision-making and strengthen corporate governance. In the future, I expect theCompany to disclose its analysis and evaluation of the eﬀectiveness of the Board of Directors.

26

USHIO INC. SUSTAINABILITY REPORT 2017

President’s Message

CSR Management

FeatureThird-Party Opinion/
Corporate Data

CSR Action Plan

Corporate Data
The USHIO Group is a leading light technology company.
Every day, we provide light-related products and services to customers all over the world from our global network of 57 sites.

Group Companies (57 companies) (as of March 31, 2017)

Parent Company

Established

Paid-in Capital

March 1964

¥19,556,326,316

Directors (As of June 29, 2017)
Chairman and USHIOGroup Representative

Jiro Ushio

President and Chief
Executive Oﬃcer

Kenji Hamashima

Director

Shiro Ushio

Director

Hiroaki Banno

Outside Director

Tadashi Nakamae

Outside Director

Yoshinari Hara

Outside Director

Director(Audit & Supervisory
Committee Member (Fulltime))

Nobuyuki Kobayashi

Outside Director(Audit & Supervisory
Committee Member)

Masanori Yoneda

Outside Director(Audit & Supervisory
Committee Member)

Nobuyoshi Yamaguchi

Domestic Group Companies

Head Oﬃce

Chiyoda, Tokyo

USHIO LIGHTING, INC.

Harima Division

Himeji, Hyogo Prefecture

XEBEX INC.

Gotemba Division

Gotemba, Shizuoka Prefecture

CDS JAPAN

Yokohama Division

Yokohama, Kanagawa Prefecture

ADTEC Engineering Co., Ltd.

Osaka Branch

Osaka, Osaka Prefecture

PROTOSERA INC.

Kawasaki Bio Lab

Kawasaki, Kanagawa Prefecture

USHIO OPTO SEMICONDUCTORS, INC.
MAXRAY INC.
6 other companies

Overseas Group Companies

North America

EuropeAsia

Yasufumi Kanemaru

USHIO AMERICA, INC.

USHIO EUROPE B.V.

USHIO ASIA PACIFIC PTE LTD.

Outside Director

Shuichi Hattori

NECSEL INTELLECTUAL
PROPERTY, INC.

BLV Licht - und
VakuumtechnikGmbH

USHIO ASIA PACIFIC (THAILAND)
LTD.

Outside Director

Sakie T. Fukushima

CHRISTIE DIGITAL SYSTEMS
USA, INC.

USHIO POLAND Sp. zo. o.

USHIO TAIWAN, INC.

Dipl.-Ing.Reinhold Eggers GmbHUSHIO KOREA, INC.

CHRISTIE DIGITAL SYSTEMSCANADA INC.

Employees (as of March 31, 2017)

CHRISTIE MEDICAL HOLDINGS,
INC.

Parent company

1,703Japanese subsidiaries

869

EVENT AUDIO VISUAL GROUP,
INC. d.b.a. NATIONWIDE
WHOLESALE VIDEO INC.

Overseas Subsidiaries

3,391

Total

5,963

USHIO HONG KONG LTD.
USHIO SHANGHAI, INC.
USHIO SHENZHEN, INC.
USHIO (SUZHOU) CO., LTD.
USHIO (SHAOGUAN) CO., LTD.
USHIO PHILIPPINES, INC.
CHRISTIE DIGITAL SYSTEMS
USA, Ltd.

27 other companies

Published by:General Affairs and Risk Management Department
USHIO INC.
6409 Moto-Ishikawa-cho, Aoba-ku, Yokohama-shi,
Kanagawa 225-0004, Japan
Tel: +81-45-901-2812 Fax: +81-45-901-2814
E-mail: kankyo@ushio.co.jp