S U S TA I N A B I L I T Y R E P O R T 2 0 1 5Year ended March 31, 2015

The USHIO Group will harness the unlimited
by solving society’s problems and improving
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.

North America
USHIO AMERICA, INC.
CHRISTIE DIGITAL SYSTEMS USA, INC.

EuropeCHRISTIE DIGITAL SYSTEMS CANADA INC.
CHRISTIE MEDICAL HOLDINGS, INC.

USHIO EUROPE B.V.

NECSEL INTELLECTUAL PROPERTY, INC.

USHIO FRANCE S.A.R.L.
USHIO DEUTSCHLAND GmbHUSHIO GROUPUSHIO U.K., LTD.

MANAGEMENTPHILOSOPHY

BLV Licht‐und Vakuumtechnik GmbHNATRIUM Sp. zo.o.

1.
Build both a prosperous Company andprosperous employees.
2.
Deliver products and services that arecompetitive in the global market.
3.
Contribute to society through superior
products and innovative research anddevelopment.
4.
Expand profits, corporate responsibility,
and competitiveness through open andfree-thinking business operations.

Number of Employees

Corporate Data
EstablishedMarch 1964

Paid-in capital¥19,556,326,316

North America

Europe2,000

400

President and Chief Kenji Hamashima
Executive Officer
Head office

1,578

2-6-1 Otemachi, Chiyoda-ku,
Tokyo 100-8150

Employees (as of March 31, 2015)
Parent company
Japan

1,755

1,514

365

1,559

1,500

300

1,000

200

500

100

246

256

705

Overseas

3,080

Total

5,540
0

2013

2014

2015

0

2013

2014

2015

Editorial Policy

1 CSR Report

In choosing the material for this Sustainability Report 2015, we madean effort to report in greater depth on the correlation between
management and corporate social responsibility (CSR) issues. We havealso tried to create links so that the report will serve as a gateway to
our CSR website and Online Annual Report. We have edited the report
to make it easy to read for a wide stakeholder audience.

For the USHIO Group’s detailed CSR report, please see the section of
our website entitled CSR/Society & the Environment.

S u s ta i n a b i l i t y R e p o r t 2 0 1 5

Web http://www.ushio.co.jp/en/csr/

potential of light to create new value
quality of life for people.
Contents

02

Japan

President’s Message

06 Feature	Creating New Value in the
LED and LD Business

USHIO INC.
USHIO LIGHTING, INC.
XEBEX INC.
NIHON DENSHI GIJUTSU CO., LTD.
ADTEC Engineering Co., Ltd.
PROTOSERA INC.
USHIO OPTO SEMICONDUCTORS, INC.

10 Topics	The Biomedical Business
CSR Procurement
12

CSR at USHIO

5 other companies

14 Governance	Corporate Governance andTransparency
16 People	Respect for Human Rights

Asia
USHIO HONG KONG LTD.
USHIO TAIWAN, INC.

18 Quality	Relationships with Customer
and Business Partners

USHIO PHILIPPINES, INC.
USHIO (SUZHOU) CO., LTD.
USHIO ASIA PACIFIC PTE. LTD.
USHIO KOREA, INC.

20 Environment
	Environmental Activities

USHIO SHANGHAI, INC.
USHIO SHENZHEN, INC.

22 Society	Relationship with Society

Asia
1,500

Japan
1,304

1,324

2,800

2,367

1,261

1,200

2,381

2,460

24	Research and Development/
Intellectual Property
25 Third-Party Opinion
	Response to Third-Party
Opinion

2,100

900
1,400
600
700

300

0

2013

2014

2015

0

2013

2014

2015

2 Online Annual Report

Scope of Report

For information about the USHIO Group’s business activities, pleasesee our Online Annual Report 2015, and our Group website.

Time period:	This report basically covers from April 1, 2014 to March
31, 2015, but also includes some activities prior to thisscope, and some activities in fiscal 2015.
Organizations: 	All USHIO INC. business sites and Group companies
worldwide

Web http://www.ushio.co.jp/en/ir/ar2015/

S u s ta i n a b i l i t y R e p o r t 2 0 1 5

01

President’s Message

USHIO is promoting a medium-term management
plan that seeks to fuse the sustainable growth ofglobal society with USHIO’s growth strategies.
I am proud to present the second sustainability report since my appointment
as president. In May 2015, we announced a new medium-term management
plan. This plan takes a long-term view on the future of our business, and aims
to achieve a dramatic increase in earnings.
USHIO’s long-term strategy is todevelop business that promotes thecreation of a sustainable society.
I hope that our report on thefirst step in this strategy will
help to give everyone abetter understanding of
where we are heading.

Medium-term Management Plan
and CSRand product development divisions, but in every part ofIn the medium-term management plan announced indivisions. Therefore, in tandem with our medium-term

May 2015, we laid out three key measures: “expand

plan strategy, we have also been working to strengthenbusiness earnings,” “enhance capital efficiency,” andour management foundation, which is the main body“bolster shareholder return.”

through which we create new value.

We believe that by continuing to apply USHIO’s “light

Specifically, we are looking at the following Grouptechnology” to the problems faced by our customers

issues and wide-ranging corporate trends to strengthenand society, we can contribute to solving social issues

our management foundation.

and realizing a sustainable society.
To achieve our goals, we must start innovation tostimulate the creation of new value, not only in the R&D

02

the USHIO Group, from sales through to management

S u s ta i n a b i l i t y R e p o r t 2 0 1 5

Management transparency
Communication with stakeholders
Human rights and diversity

Financial Results
2013

2014

2015

¥143.4 billion¥157.8 billion¥159.3 billion

Operating income¥7.5 billion¥12.1 billion¥10.3 billion

Net income¥7.1 billion¥10.7 billion¥11.2 billion

4.3%

6.0%

5.6%

Net sales

Return on Equity (ROE) (%)* All numbers are rounded down to the figures shown.

Medium-Term Management Plan Numerical Targets
2015 (Actual)

2016 (Plan)

2018 (Plan)

Net sales¥159.3 billion¥180.0 billion¥220.0 billion

Operating income¥10.3 billion¥13.0 billion¥18.0 billion

Operating Income Ratio

6.5%

7.2%

8.2%

Return on Equity (ROE) (%)

5.6%

5.7%

above 8.0%

Target
2020

ROE
10%

Medium-term Management Plan

Medium-termManagement Plan
2018 Target

ROE
above 8.0%
Three key measures
Expand Business Earnings

Enhance Capital Efficiency

Bolster Shareholder Returns

USHIO will strive to expand businessearnings and improve its businessstructure from the following four
perspectives: 1) reassess resource
distribution and reallocate, 2) transition
to solutions business, 3) enter newmarkets, and 4) expand via M&A
investment. These measures will leverage
existing resources to their maximum
extent and control the increase of cash
outflow, improving operating efficiency
and speeding up the rate of new
products and creation of new businesses
for the future.

Currently, financial assets account for halfof USHIO’s total assets. Going forward,
we will accelerate the conversion fromfinancial assets to business assets andreview our policy shareholdings. Cashobtained from selling policy
shareholdings can be used for business
investments such as M&A, moving awayin the future from reliance on financial
profits from financial assets to true
business profits that will help maintain astable ROE.

To achieve our ROE target USHIO must
make growth investments in businesses
and strengthen shareholder returns toachieve balanced capital operations.
Specifically, this means a policy of greater
proactivity and activity by maintaining thecurrent policy of stable payments ofdividends, and for a certain period until
we have increased the certainty ofachieving sustainable business growth forthe future, more proactively and flexibly
repurchasing shares after taking into
account projected free cash flows to begained going forward and share pricetrends, as well as active engagement inbusiness growth investment.

Strengthen Management
Foundation

We will establish a management foundation that can realize the creationof new value and ensure a sustainable society (CSR Action Plan)

S u s ta i n a b i l i t y R e p o r t 2 0 1 5

03Human resource development

Communication with Stakeholders

Supply chain and CSR procurement

We value communication with stakeholders as an

Customer satisfaction

important aspect of our efforts to improve our

Improving the ISO management systemmanagement foundation, which will support the progress

These are the preeminent CSR factors of our time,of our medium-term management plan. USHIO seeks toand all of them are building blocks for the businessincorporate diverse values into its management, and isfoundation that will play an essential role in USHIO’s

therefore powerfully promoting communication withgrowth. Here we will start by giving an overview of thecustomers, investors, business partners, Groupmedium-term management plan, which will lead into

employees, NPOs and others. By picking up on the

our CSR Action Plan (details on P. 13), and we will also

expectations of diverse stakeholders for the Company

highlight several measures that are already in place.

and deepening our awareness of internal and external

Fiscal 2015 Performance and Overview
of Medium-term Management Plan
In the fiscal year ended March 31, 2015, net sales were

issues, we expect to take up completely newtechnologies and approaches, and provide strong
impetus for innovation that will produce new value.
To stimulate communication with USHIO’s employees

up 1.0% year on year to ¥159.3 billion; however,and other groups, we promote human resource

operating income decreased 14.5% to ¥10.3 billion. By

exchanges through proactive redeployments not only ofsegment, the equipment business was down in sales

the human resources in operating divisions, but also

and income, but in the light sources business, bothwith other Groups. We have provided various forums

sales and income increased.

for exchanges, such as lunch meetings for executive

The Group is aware that its results have not obtained
a standard the market expects over the past few years,
especially in the aftermath of the collapse of Lehman

officers and employees, and the world café forcommunication between employees.

improving investment efficiency through development

Shifting to a Structure withThree Outside Directors

investment and with the early creation of future growth

In Japan, the Corporate Governance Code wasdrivers such as solid-state light sources and medical

introduced in June 2015 amid increasing worldwide

products. We also believe it is necessary to strengthen

recognition that dialogue with stakeholders such as

our management foundation in order to ensure theinvestors and non-financial value are extremely

effectiveness of these measures.

important in corporate activities.

Brothers. We see the need to enhance profitability by

Against this background, we set targets for the end of

In line with this code, USHIO has added anotherthe fiscal year ending March 31, 2018, three years away,

outside director and another outside audit andof ROE of at least 8.0%, net sales of ¥220.0 billion andsupervisory board member from the fiscal year ending

operating income of ¥18.0 billion (with an operating

March 31, 2015. The resulting new structure has a board

income ratio of 8.2%), while also aiming for ROE of 10%

of directors with eleven directors, of whom three areby the year ending March 31, 2020.

outside directors. USHIO’s Board of Directors and Board

Online Annual Report 2015 STRATEGY

of Auditors and Supervisors is therefore incorporating

Web http://www.ushio.co.jp/en/ir/ar2015/strategy/index.html

people with diverse backgrounds and experience who

Medium-Term Management Plan (PDF)

we expect to provide new and different perspectives as

Web http://www.ushio.co.jp/en/ir/library/management_plan/index.html

well as useful knowledge. At the same time, the boards
will receive new perspectives on supervision andmonitoring of management and governance. We
therefore believe that they can increase thetransparency of the Company’s management.
Newly Appointed Corporate Officers (Online Annual Report 2015)
Web http://www.ushio.co.jp/en/ir/ar2015/governance/interview.html

04

S u s ta i n a b i l i t y R e p o r t 2 0 1 5

Human Rights, Human Resource
Development, and Diversity

Contributing through Business andCreating Employment

One of the five pillars of USHIO’s CSR Action Plan is

As a leading light technology company, in addition to“People.” We believe that it is essential to give

conventional fields such as electronics and imaging,consideration to human rights in relation to business

USHIO is able to contribute in new areas such asactivities.

biomedical and life sciences. For example, theRoughly translated as “Mountain Peak Management,”

biomedical field has been positioned as a third pillar of

Renpo Keiei has been the USHIO Group management

USHIO’s business. Here, our blood analyzers andphilosophy since day one. We have established aphototherapy devices have received regulatory approval

structure for sharing information such as businessin a string of countries throughout Asia, and are

strategies, corporate ethics, and basic approaches tocontributing to a higher quality of life. In the area of

CSR. We also respect each Group company’s policies

industrial solid-state light sources (LEDs, LDs, etc.)

based on individuality, independence, and autonomy towhich are expected to contribute to a low-carbon

ensure that day-to-day operations are in keeping withsociety, we have seen major advances for application in

local culture, history, and other background aspects.

cinemas and automobiles. Under the medium-term

We aggressively promote locally hired employees into

management plan, we will continue with this kind of

positions of middle and senior management.

new value creation to develop products and services

We have always focused on human resource
development as one of our most important priorities;

that contribute to society, and to drive USHIO’s Growth.
Currently, the USHIO Group’s net sales are 80%

however, under the current medium-term management

overseas, and more than half of the Group’s employees

plan, our policy is to advance these measures even further.

are affiliated to overseas Group companies. Looking

We have introduced a “Young Executives Scheme,” forahead, we believe our global development will

equipping young employees with the global awareness

contribute to community development by creatingof CEOs. In long-term human resource development, we

significant employment opportunities at our worldwide

have also further enhanced our level-specific training

network of bases.

system, which is designed to foster self-awareness of

In October 2010, USHIO declared its support for theemployees for each of their own particular roles within

10 principles of the United Nations Global Compact.

the employment system. Another goal is to improveThis year, the United Nations adopted the Post-2015

employees’ English language abilities. We provide

Development Agenda. We will also contribute tospaces for everyday English conversation and take othersolving social issues such as these through our

steps to improve their communication skills.

business activities.

Furthermore, we are promoting diversity through equal
opportunities for human resource development andactivity regardless of gender or ethnicity, and we also haveplans to increase our hiring of people with disabilities.

I hope you will continue to offer your understanding
and support for our efforts.
And I hope that you will share your feedback andopinions about this report with us.

Supply Chain Management
Developing a global business means we need to

October 2015

consider environmental protection at every stage in theseries of processes from raw material procurement
through to product disposal by customers. In addition,
we must also consider the CSR activities and respectfor human rights among our suppliers. USHIO is alreadyKenji Hamashimapracticing green procurement activities and taking

President and Chief Executive Officer

initiatives on CSR issues as stipulated by our CSR
Procurement Policy throughout its supply chain.
S u s ta i n a b i l i t y R e p o r t 2 0 1 505

Feature

Creating New Value in the

LED andLEDs help to conserve energy and resources. They have become widespread amonghouseholds and people have recently become familiar with them. They are also gradually
being introduced, along with LDs (laser diodes), in the industrial sector, where they canhold their own in performance against conventional lamps in conditions that require
extremely high specifications.

Uses for LEDs beyond Illumination

USHIO EPITEX INC.) and in 2010, Necsel Intellectual

USHIO LIGHTING, INC. supplies a diverse array of

Property, Inc. With the recent addition of USHIO OPTO

illumination equipment in places such as hotels, offices,

SEMICONDUCTORS, the USHIO Group has now

and hospitals, were LEDs can provide unique added

prepared a framework to provide a strong line-up ofvalue. But LEDs are capable of providing more than justLEDs and LDs to meet customers' diverse needs.

illumination in these fields. As a leading company indeveloped over many years to provide a wide range of

USHIO Pioneers a New Era for LEDs
and LDs

LEDs and LDs, from ultraviolet through to infrared, forConventional lamps emit a wide range of wavelengths,

various applications including semiconductor

but LEDs and LDs have a special characteristic in that

manufacturing processes and medical uses.

they can be made to emit only certain required

light, USHIO is using the light technology it has

wavelengths depending on the material used to makePromoting Strategic M&As

them. This means that they can use light more

USHIO is aggressively promoting M&As with the goals

efficiently for each application than an ordinary lamp.

of accelerating development and increasing its productLEDs and LDs are relatively young products, andline-up. In October 2014, USHIO acquired the industrial

they are considered to hold tremendous potential forand consumer semiconductor laser diode and LED

providing solutions in the future to problems facing

business of Oclaro Japan, Inc., and made a fresh startglobal society. USHIO is conducting research andwith the business as USHIO OPTO SEMICONDUCTORS,

development in pursuit of even higher quality LEDs

INC. In 2008 USHIO acquired Epitex Inc. (currently

and LDs.

Main Markets for USHIO’s LEDs and LDs

06

Visual Imaging

Process

Measurement

Projectors, printers, image processing, etc.

Lithography, UV curing, 3D printers, etc.

Surveillance camera,
measuring devices, controllers, etc.

S u s ta i n a b i l i t y R e p o r t 2 0 1 5

LD BusinessGroup Companies Driving the Solid-State Light Sources Business
Lasers for industrial use
USHIO OPTO SEMICONDUCTORS

LED Lighting Total Solutions
USHIO LIGHTINGUSHIO OPTO SEMICONDUCTORS utilizes unique laser

USHIO LIGHTING provides total solutions to meettechnologies and manufacturing expertise with a focus

customers’ needs, such as comfortable lighting that also

mainly on laser diodes for industrial and consumer use. The

saves on energy and costs for hospitals, hotels, and othercompany supplies high power red multi-beam laser diodes

facilities, stage lighting equipment and optimal lighting

for high-end multi-function office printers, red laser diodes forcontrols for use in diverse productions, and unique

medical and measurement applications, violet laser diodes

equipment tailored to specific usage environments andfor exposure equipment, high power red laser diodes forpurposes, such as plant factory lighting or fish-luring lights.

displays, and infrared emitting diodes for optical encoders.

UV laser

Red laser

Near infrared
laser

Multi beam LD

LED lamps

LED follow
spot light

External LED
lighting

Wireless controlled
LED lighting systemfor plant growth
application

High Powered Visible Lasers
Necsel Intellectual Property

Supplying High-Power LEDs from Infrared
to Ultraviolet USHIO EPITEX

Necsel Intellectual Property provides laser light that offers

USHIO EPITEX supplies high-power LED modules for use inbrightness, a wide color gamut and saturated colors, andthe intelligent transport system (ITS) field, such as devices

lower operating costs with a longer lifetime. Thesefor surveillance, traffic surveillance and car-park

attributes are used in products for digital cinemas andsurveillance, as well as in biometric authentication, medical

planetariums. The products include an academic association

and biological devices, and industrial-use light sensors.

award-winning green laser and other light sources for the
new market of premium theater, which are providing
powerful impetus for the creation of new markets.

White laser

Blue laser

Green laser

Red laser

Surface-mount
LED

Super beam-type
LED

Stem-type LED

Ultra High PowerLED Array

Automotive/ITS

Illumination

Science/Medical/Bio

Headlights, head-up displays,
ETC (electronic toll collection)

Illumination, spotlights, space production, etc.

Treatment, testing equipment, plant factories,
water and air sterilization, etc.

S u s ta i n a b i l i t y R e p o r t 2 0 1 5

07

Feature: Creating New Value in the LED and LD Business

USHIO’s Challenge in Next-Generation
Realizing a sustainable society requires saving energy and reducing
waste. From this perspective, ordinary LED lighting offers outstanding
performance over conventional incandescent lamps, using around
1/8 of the power and lasting around 10 times longer.
On the other hand, to develop solid state light sources (LEDs andLDs) that are able to replace the specialized light sources forindustrial use provided by the USHIO Group, there are several
hurdles that must be overcome. In particular, in fields that require
high power and high luminescence, we have only just begun
development work that will lead to mass production. Here,
Hiroaki Banno, General Manager of the Solid–State Light
Sources Division, explains the latest developments and vision
for the future in USHIO’s solid–state light sources business.
Hiroaki Banno

Director, General Manager, Solid–State Light Sources Division

USHIO’s Target Areas and Applications

fields, we must provide a wide range of light

We are currently working on solid–state light sources inwavelengths depending on their application, fromsix areas, all of them for industrial purposes. The six

ultraviolet through to visible light and infrared.

areas are 1) Visual Imaging for video and images, 2)from visible through to infrared light, 3) Science/

Accelerating Development ofPowerful Light Products

Medical/Bio, utilizing the characteristics of light

The industrial applications of solid-state light sources

wavelengths and materials, 4) Measurement, using theinclude areas where weak light is sufficient, such as

properties of light waves, 5) Automotive/ITS (intelligent

measuring equipment, and areas where powerful lighttransport systems), and 6) Illumination. In each of theseis required, such as semiconductor manufacturing

Processes utilizing UV light reaction effects and heatingprocesses. In the case of the former, itis actually easier to make solid-state
light sources than the conventionally

Visual Imaging

used discharge lamps and halogen

Illumination

Automotive/
ITS

Process
Six Key Fields in
USHIO’s Solid-State
Light Sources
Business

Measurement

lamps, which have now been largely
replaced in mainstream use by LEDs
and LDs.
On the other hand, in fields where

Science/
Medical/Bio

powerful light is required, there aremany technical hurdles to be
overcome. For example, we have only
just started work on developing solidstate light-source products that canoperate on par with the high power,08

S u s ta i n a b i l i t y R e p o r t 2 0 1 5Soolid–State Light Sources
high luminescence discharge lamps used in thesemiconductor manufacturing process. USHIO iscurrently rapidly to promote technological innovation

A Safe and Comfortable
Automotive Society
The Automotive/ITS-related market is the subject ofwith the goal of developing new products to help

increasing attention. USHIO is also at work here,

realize a sustainable society with its customers. We

developing lasers for use in head-up displays.

expect solid-state light sources to replace conventional

Head-up displays project all kinds of information on

ones in these fields, too, in the not-too-distant future.

the windscreen of a car, ultimately replacing all driver-

Digitalization of Cinemas andLaser Diodes (LDs)seat instrumentation such as meters and car navigation,
while staying in constant communication with electronic
toll charging (ETC) and cloud networks. Meanwhile, ITS

Over the past few years, the field of cinema has seen awill achieve a constant bird’s-eye view of the entire roadmassive shift from film projectors to digital cinematransport network, detecting and responding toprojectors. This has contributed greatly to reducing theabnormalities, and contributing not only to individual

use of oil resources to produce massive quantities of film

vehicles, but to the construction of a safe andthat were previously distributed to cinemas. Today, thecomfortable automotive society. Head-up displays using

shift to digital projectors is all but complete in advanced

high performance lasers developed by USHIO are

countries, and the USHIO Group’s Christie® products

expected to be used in general passenger cars marketed

represent about a 40% share of these. As digital cinema

in a few years from now. Furthermore, there are still

projector demand is being maintained in Asia, particularly

many fields in peripheral supporting technology for ITS

in China, we believe the projectors will continue to drive

where solid-state light sources are expected to play afurther resource savings. In addition, since the adoption

role. We are actively developing products for these.

of digital technology enables central control of the image
from the control room, it is likely that movies will be
distributed online for screening in the future, adding
potential for reducing distribution-related costs.
In addition to these trends, USHIO has started selling

Medium-Term Vision for
Several Years into the Future
USHIO established the Solid-State Light Source
Promotion Office in 2008. Seven years later, in the fiscal

LDs for use in digital cinema projectors. This year, weyear ending March 31, 2016, we are expecting to record

began full-scale shipments of LD products for premium

net sales of almost ¥10.0 billion, and in the fiscal year

theater projectors that cannot be made with xenon

ending March 31, 2018, we plan to achieve net sales oflamps. The LDs not only help to save energy andaround ¥16.0 billion. Apart from the LDs for the cinema

resources, they also produce far higher power andfield that started full-fledged shipments from the fiscal

luminescence than conventional discharge lamps. They

year ended March 31, 2015, we also have a large

also utilize the single-color of the wavelength tonumber of products under development that we expect

recreate a high color gamut that was previously

to release soon.

unachievable. This enables them to project images thatare exceptionally clear and beautiful.
These projectors will herald a new era in cinema forSociety has high expectations of LEDs and LDs rightnow. Our customers are asking for products that will
help them to develop products that can contribute topeople working in movie

realizing a sustainable society. As a leader in the field of

production as well as

light, USHIO is using its strength in the form of the trust

movie-goers.

relationships it has built with customers to identify
social needs. Through this characteristic approach, wewill create new value and grow the solid-state lightsources business.

S u s ta i n a b i l i t y R e p o r t 2 0 1 5

09

Biomedical Operations

In 2014, USHIO launched the Biomedical Business Division as a third business pillar. As
with the solid-state light sources business, we are creating new value that solves social
issues by aggressively pursuing M&As and joint development with research institutions,with the goal of creating products that will drive USHIO’s next generation of growth.

TheraBeam® UV308 Excimer Light Phototherapy Device
The TheraBeam UV308 provides therapy for patients using beams of light. It was
created by USHIO with the goal of providing therapy to those in need.
Over 350 units have been produced in total to date, and they are currently being
used to treat skin disorders in countries around the world. The device has
successfully improved the quality of life for numerous patients suffering fromconditions such as vitiligo, psoriasis, palmoplantar pustulosis, and atopic dermatitis.
Recently, universities and others have made advances in research on atopic
dermatitis and its associated itchiness, which is expected to verify the effectivenessof TheraBeam UV308 in this area. Our goal is to provide USHIO’s light to as many
patients as possible.

Point Reader V® Blood Analyzer Enabling Quantitative Analysis
for Animals
USHIO has launched Point Reader V, a blood analyzer enabling quantitative analysis foranimals using immunochromatography, along with the dedicated reagent Point Strip®.
The immunochromatography method has low quantitative accuracy, and has
therefore been used only as a qualitative method until now. With the Point
Reader V and the Point Strip reagent, USHIO has succeeded in dramatically
improving the analysis capability of this method. We are currently developing
the Point Strip Canine-CRP—a reagent for measuring inflammation in dogs, andplan to add various other measurement targets in the future, including cats.
Today, animal companions have become members of the modern family. Pets
Point Reader V
and Point Stripcannot explain their own symptoms, but we hope that the Point Reader V, with
its ability to quickly measure blood levels on the spot in clinics, will be able tohelp with diagnosis.
* We have now started sales in China, and plan to launch the product in other countries, too.

CEALA–Cosmetics for Medical Institutions
Photodynamic Therapy is the latest therapy and diagnosis technique that combineslight and pharmaceuticals. USHIO has been focusing on this technology for sometime, and in the process of research and development has searched constantly fora method to help those who have skin problems. Recently, we have been working
on the moisturizing ingredient ALA (Aminolevulinic acid phosphate), and havedecided to sell cosmetics made using ALA. These cosmetics are medical cosmetics
for people with skin problems. They provide moisture to dry skin, keeping it healthy.

10

S u s ta i n a b i l i t y R e p o r t 2 0 1 5

CSR Procurement

A company’s social responsibility is one of the conditions for the survival of its business.
Moreover, an accurate response to this will help a company to demonstrate excellence
and form a competitive advantage. However, social responsibility cannot easily betackled by a single company alone, and requires the action of the entire supply chain.
USHIO is continuously expanding the scope and survey items of its initiatives, andworking together with its suppliers to increase their CSR response capabilities’.
2015
Number of
respondents to survey

Response rate

613

90%

CSR Procurement Questionnaire Survey

Overall average

In the fiscal year ended March 31, 2015, USHIO

CSR promotion
5.0

BCP

4.0

significantly expanded the number of suppliers of main

3.0

production sites covered by its survey, sending the survey

2.0

to nearly our entire supplier network 613 companies. Of

Social contribution

1.0
0.0

these, 90% responded, and the overall average values for

Human rights and labor

Occupational
health and safety

the responses of the companies is shown in the diagram to
the right.

Information Security

Environment

Based on these results, we provided individual feedback
to each supplier, and used a dialogue process to identify
issues and consult on measures for improvement.

Quality and safety

Fair transactions and ethics

CSR Procurement Policy

Overseas Procurement

USHIO is meeting its social responsibilities as a corporate

As companies continue to globalize, the social

citizen by supplying superior products and services to the

responsibility required of them has increased, and theglobal market through free and open corporate activities.

scope of that responsibility has widened. Issues with

For its procurement activities, in the spirit of encouraging

human rights relating to overseas labor conditions, water

coexistence and co-prosperity, USHIO has defined the fiveand environmental pollution due to resource

points below as the USHIO CSR Procurement Policy,

development, or issues relating to mined resources in

encapsulating its respect for laws, social norms andwar-torn areas are among the responsibilities—and risks—environmental protection.

that companies bear both directly and indirectly through

1. Human Rights Alongside Occupational Health and Safety
2. Environmental Consideration, Green Procurement

their supply chains.
USHIO also procures items from overseas suppliers, and

3. Ensure Product Safety

from the fiscal year ended March 31, 2015 also started a

4. BCP (Business Continuity Planning)survey of domestic business partners, targeting high

5. Fair and Equal Transactions, Legal Compliancevolume transactions and items that are often used in(Information Security)

general merchandise. Since the situation differs in each

CSR Procurement Policy
Web http://www.ushio.co.jp/en/csr/csr-procure.html

region and country, we seek to create a road map
through discussion, and continue to conduct surveys.

S u s ta i n a b i l i t y R e p o r t 2 0 1 5

11

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

CSR Promotion Framework
USHIO has established a CSR Committee,
which is chaired by the president. The

CSR Promotion Frameworkcommittee decides on policies for the whole
Company relating to CSR initiatives. The CSR

CSR Committee(Chairperson: president)

Committee establishes subcommittees asneeded to oversee practical implementation of
the policies it has decided, and discusses

Risk Management Office
CSR manager

Separate subcommittees
for each initiative

specific initiatives and ways to promote them.
At the 24th CSR Committee meeting held in
May 2014, the members confirmed current
priorities to be addressed and initiatives to betaken going forward. Furthermore, at theGroup CSR Council held in April 2015, the top
management of Group companies attended

Business divisionsand Group companies

from bases around the world. They completed
a survey relating to CSR and shared
information and discussion on supply chain
CSR management, BCPs, and other issues.

United Nations Global Compact’s Ten Principles
USHIO has declared its support for the United
Nations Global Compact of principles
concerning human rights, labor standards, theenvironment and anti-corruption. We havejoined the local UN network supporting thecompact, Global Compact Network Japan, andhave taken an active role in various sectional
activities, including our involvement inco-sponsoring a proposal on supply chain
management as one of the participatingcompanies. We have joined the local UN
network supporting the compact, Global
Compact Network Japan, and are working topromote all facets of CSR among the manyother participating companies and NGOs. To
this end, we are continuing to play an activerole in sectional activities for sharing
information on necessary specific measures,and enhancing the activities of each company.

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Web http://www.ushio.co.jp/en/csr/index.html (CSR/Society and the Environment)

Medium-term Plan for CSR
USHIO established the CSR Department in 2009, andformulated a medium-term CSR plan aimed at fusing theCompany’s management strategies through to fiscal year
ended March 31, 2015 with its CSR tasks. USHIO’s mediumterm CSR planning comprises three phases. In phase-1 (2010
to 2012), we focused our efforts on “forming an infrastructure
for CSR initiatives.” In phase-2 (2013 to 2014), we worked to“dig deeper into CSR issues” and achieved our initial targets.
Since fiscal 2014, we have been working on phase-3(2015-2016).

In phase-3, where we seek to establish our activity
foundation, as well as our initiatives for achieving the final
targets of the CSR medium-term plan, we are also conducting
a Group-wide survey with an eye towards our next step.
Currently, we are enhancing the survey content by giving
greater consideration to the situations in each region of theworld. We are also engaged in active communication
between Group companies in order to further consolidate
the basis of our CSR activities as a Group.

Key Issues in Group Companies (From Questionnaire Survey)
Proactive information disclosure
and CSR reports

Phase-3 Initiatives
In phase-3, we will integrate our initiatives throughout theentire Company as we move from the conventional stage ofreflecting CSR issues in the annual business plans of eachbusiness division to the final stage under the Medium-term
Plan for CSR, which is “complete integration of management
strategy with CSR issues.”

We made our first attempt to integrate CSR issues in our
medium-term management plan, announced in fiscal 2014.
The plan brings together the discussions of the CSR
Committee and all the other kinds of committees, as well as
the Group CSR Council, as well as plan proposals covering
every aspect, including compatibility of CSR issues in each of
the business divisions.

Social contribution of products
Participation in volunteer activities,
etc., by regional companies
Environmental activities
Education regarding human rights
and anti-corruption
Workplace health and safety,
and discrimination-free workplaces
Selection of suppliers
who emphasize CSR

0

3

6

9

12

15

18

CSR Action Plan
The Group’s issues were classified under the five pillars ofgovernance, people, quality, society, and environment. These
items are then broken down further into action policies.
Currently, the CSR Action Plan shows USHIO’s CSR framework
while forming the underlying philosophy for business planningat each business division and Group company.

Formulation of a CSR Action Plan under the Five Pillars
Five Pillars

Governance

Ensure transparency in sequences of business activities,
information disclosure, compliance with laws andregulations and international rules, prevention ofcorruption, risk management, and others

PeopleEradicate 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

Quality

Realize attractive quality overall, not only in products,
but also in concepts and service provision, and including
observance of market rules and guidelines

Environment

Disclose information on greenhouse gas and otheremissions affected by corporate activities, impacts on
climate change and ecosystems, consideration forresource limitations, management of dangerous waste
and hazardous chemicals, etc.

Society

Maintain relationships with local communities,
involvement with international society, contribution toeducation, culture, etc., social contributions throughbusiness such as products and services

Fiscal 2015 Action Plans
 trengthen information security
SPromote business continuity management
Strengthen measures to prevent corruption
Provide information to shareholders on CSR
activities

 trengthen Group CSR activities (shareS
information, common targets, grasp needs,etc.)Enhance disclosure of non-financial
information
Initiatives to maintain transparency on tax
issues reate human rights policy
CEradicate discrimination, respect diversity topromote roles for human resources in thecompany
Maintain a comfortable work environment(eliminate harassment, ensure appropriate
worker health and safety)Implement human resource development tocontribute to maintaining and improving
business activities over the long term
Promote work-life balanceConduct human rights education
Formulate a diversity policy
Strengthen monitoring of worker health andsafety ure customer satisfaction improvement, with thePgreatest emphasis on the customers’ perspective
Quality target and plan development
Matters related to strengthening the supply chain(Promote green procurement and CSR
procurement, promote activities with anawareness of the basic policy on conflictminerals, practice due diligence on human rights)

 trengthen global quality assurance system
SProduct safety assessment
Enhance supplier CSR monitoringImprove ISO (speed up, streamline) argets and Initiatives Based on Phase Four ofT
the Environmental Action Plan•R
 educe environmental impact by developing
environmentally conscious products• In business activities and product development,
anticipate environmental regulation trends•R educe business site costs along with energy
and resource savings, and take aggressive
initiatives on distribution•S tep up environmental activities within theGroup and with business partners

 trengthen chemical substance management
SEvaluate Group progress on Environmental
Action Plan, establish next Environmental
Action Plan
Register chemical substance control, observethoroughly, and enhance risk management
Set new targets under the 5th Environmental
Action Plan (medium-term target for CO2
emission reduction)

 oster social awareness by encouraging active participation in social contribution activities,
Fcommunity exchanges, volunteer and pro bono activities
Promote business in emerging countries
Promote participation in volunteer activities

S u s ta i n a b i l i t y R e p o r t 2 0 1 5

13

GovernanceCorporate GovernanceCorporate Governance and Transparency
The basic approach to corporate governance at the USHIO Group is ensuring thetransparency and efficiency of the Group’s management, while also increasing
corporate value to meet the expectations of the Group’s diverse stakeholders. Thisapproach is one of the Group’s highest priorities.

Corporate Governance Framework
USHIO uses a management structure that includes a Board of Auditors and Supervisors. The
Company has the Board of Directors, which determines management policies and makes decisions
about other matters of the highest importance. The directors also oversee the management ofbusiness operations. It also has representative directors, who are responsible for conducting
business operations. And it has the Board of Auditors and Supervisors, which is responsible for
audits. To assist the Board of Directors in reaching decisions, the USHIO Group has three advisory
units that examine and discuss management strategies and medium and long-term management
policies with respect to USHIO and the entire Group. The units are the Executive Council andGroup Coordination Council. In addition, the USHIO Group has a business unit structure and an
executive officer system for the purposes of strengthening and speeding up the execution ofbusiness operations by the representative directors.

Board of Directors, Board of Auditors and Supervisors,
Compensation Advisory Board
After electing a further outside director at the General Shareholders’ Meeting held in June 2015, theBoard of Directors comprises a total of 11 directors: 8 internal directors and 3 independent outside
directors. Internal directors familiar with the company’s businesses enable decisions to be madeswiftly, while outside directors not involved in the day-to-day running of the company enable USHIO
to bolster its management and supervision functions and increase management transparency.

The three outside directors have submitted notification as independent executive officers as
stipulated by the Tokyo Stock Exchange. They receive explanations from relevant divisions prior toboard meetings so that they can participate fully in discussion of matters for resolution. They also
exchange information and opinions with other directors and audit and supervisory board
members on an individual basis.
With regard to audit and supervisory board members, with the election of a further member at
the same shareholders’ meeting, the Board of Auditors and Supervisors has five members, including
three outside audit and supervisory board members who are independent of the USHIO Group.
Furthermore, USHIO has a Compensation Advisory Committee to ensure that executive officer
compensation is fair and justified. The committee chair and a majority of the members compriseoutside directors.
An interview with newly appointed corporate officer can be read on the Company’s website.
Web http://www.ushio.co.jp/en/ir/ar2015/governance/interview.html

USHIO’s Internal Control Framework

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Web https://www.ushio.co.jp/en/csr/manage/governance.html (Corporate Governance)
Web https://www.ushio.co.jp/en/csr/manage/compliance.html (Compliance)

Business Audits

Initiatives to Prevent Corruption

At USHIO, we conduct various audits, including compliance

USHIO has stipulated Fair and Equitable Business Transactions

audits and audits of export controls, both internally and at ourin its action guidelines and has always taken vigorous action

Group companies. To ensure the quality and raise theto prevent corruption.

effectiveness of these audits, the audit and supervisory board

We conduct individual training on corruption prevention
relating to each persons’ duties, and for manager classemployees, we also conduct training based on thestrengthening of anticorruption laws globally. In this way, we
ensure that everyone throughout the Company is aware ofcorruption prevention.
We have also expressed our support for the United
Nations Global Compact’s Ten Principles, as part of which,we have strengthened our initiatives to prevent corruption.

members coordinate with relevant departments at all times.
The theme and inspection items in our internal audits are
selected in accordance with the situation of the organization to
be audited from the perspectives of the Company’s businessaims and minimizing management risks. We take care to ensurethat the audits provide value by helping USHIO achieve its
organizational objectives. Moreover, the indications andrecommendations raised by the internal audits are followed
through periodically until the required improvements have beenmade. We will continue the audits, aiming to streamline

Information Security

management, improve business operations, safeguard assets,

USHIO handles private information of frequent customers andminimize risks and improve the management structure.

is entrusted with their important company information andRisk Management

other information assets in the course of its business activities.
We consider it a top priority to safeguard such information

Through its relevant departments, the Company has identified,from threats such as leaks and modification. Moreover, because

evaluated, and specified respective risk categories related to

we recognize that information is an asset that generates value,

business execution and management, including compliance,

and is a source for increasing corporate value, we are taking

the environment, product quality, finances, legal matters,

measures such as raising awareness of information security

natural and other disasters, information management, andamong our employees and improving our risk management

export controls.

systems. This kind of management requires three interlocking

To deal with natural disaster risk, we conducted acompany-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 haveestablished 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 andconducting 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 internationalmodels, we undertake CSR procurement to manage the risks
relating to corruption, human rights abuses, andenvironmental pollution.
With regard to the above risks, the Company has
established the Compliance Committee, chaired by a director,
and a framework for reporting to the Board of Directors.

initiatives: rules must be determined, a framework must be

Compliance
At USHIO we have established a Compliance Committee, andwe work to foster a corporate culture that observes laws andregulations, practices corporate ethics, and respects Company
rules. In fiscal 2014, we conducted a survey and used thecompany newsletter to ensure awareness of complianceissues, as well as publishing a new compliance handbook.
Through these multiple approaches to the theme ofcompliance, we strived to raise employee awareness.

Furthermore, we have been promoting a Company-wide
drive to deal with compliance concerns, including potential
risks, as early as possible. We have established an internal
consultation desk as well as an external consultation andreporting desk, known as the USHIO Helpline.

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 Group throughout the world.

Specific examples include the promotion ofcountermeasures, such as having a certain secure area at
each business site where access is controlled with
IC-embedded ID cards, antivirus measures for PCs, encryptionof hard drives, authorization management of operation
systems, and strengthening the capacity to respond todisasters and faults. Other measures include setting up
automatic encryption for external email attachments,
functions to prevent sending emails to the wrong recipient,replacing PCs in conjunction with the end of support for
Windows XP, enhancing security control by replacing our PC
asset management tool, strengthening Internet access
control, and bolstering data access privileges by integrating
our file services. Recently, we have seen increasing use oftablets and smartphones in addition to PCs, and we haveestablished an environment that will ensure security for thesetools as well, just as with PCs.
It is also important to enhance information security
awareness and skills for each individual employee in order toprevent information leaks. We have therefore taken steps toincrease awareness among employees of the various threats
and opportunities where leaks may occur, by implementing acompanywide e-learning program, and conducting levelspecific training for new recruits. We promote these initiatives
by operating a PDCA cycle to ensure that this awarenesspenetrates our entire organization at every level.
In our ISO improvement activities, which started from fiscal
2015, we will support efforts to lighten workloads, and to
streamline operations and speed them up.
S u s ta i n a b i l i t y R e p o r t 2 0 1 5

15PeoplePeopleRespecting Human Rights
The USHIO Group respects the International Labor Organization’s* Declaration on
Fundamental Principles and Rights at Work. USHIO also declared its support for
the ten principles of the United Nations Global Compact in October 2010. The
principles relate to human rights, labor, the environment, and anti-corruption.
USHIO is promoting initiatives to ensure adherence to them.

Supply Chain Management
USHIO treats human rights issues in the supply chain as an important CSR theme, and is actively
striving to realize a society where all human rights are respected.

In November 2013, USHIO established the Basic Policy Statement for Conflict Minerals, which
is designed to be considerate of the human rights issues in conflict regions. We also announced
our CSR Procurement Policy in October 2014, which takes into consideration human rights in the
supply chain.
CSR Procurement Policy
Web http://www.ushio.co.jp/en/csr/csr-procure.html

Diversity
Diversity is gradually advancing in Japan under the guidance of government policies. USHIO is
promoting equal employment opportunities for people regardless of gender or ethnicity.

Utilizing Global Human Resources
Overseas sales account for approximately 80% of the USHIO Group’s total sales. Human resources
capable of blending in to communicate and understand local needs are indispensable inpromoting business overseas. We are therefore working to develop and utilize global humanresources by conducting international study programs, hiring international students, and providing
opportunities for interaction between Group companies.

Employment of People With Disabilities
In the fiscal year ended March 31, 2015, USHIO achieved a ratio of employees with disabilities of
1.89%, slightly below the legal requirement of 2.0%. We will continue taking steps to make ourworkplaces barrier free, including installing sliding doors in restrooms and handrails on stairways,
and to promote employment of people with disabilities going forward.

Support for Working Women
We believe that diverse sensitivities, approaches, and abilities are needed in order to generate
new business amid the matured economies of the industrialized nations. Consequently, we havemore than doubled the percentage of female employees in sales and technical positions over the
past five years. Furthermore, we aim to appoint people in management positions without
concern for their gender, and by 2020 we aim to have tripled the ratio of female managers fromthe current level.

Furthermore, in January and April 2013, we held talks between our chairman and female
employees to make sure that their voices are being heard by senior management. We havealso taken steps to encourage and motivate employees on an individual level. For example, inFebruary 2014, we invited a female sales manager from outside the Company to come andrun a study and networking session for female sales staff. The average service period of
USHIO employees continues to increase each year, and in the fiscal year ended March 31,
2015, the service period for female employees exceeded that of their male counterparts,
reaching 17 years.

Work-Life Balance
Support Programs

USHIO aims to be able to flexibly accommodate diverse values and working styles regardless of
employees’ lifestyles and gender. As part of this, we have a support system for childcare leavethat offers much more than the legally required level of support.

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Web http://www.ushio.co.jp/en/csr/society/employee/index.html (Working Together with Employees)

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 child-raising 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 enablepeople to balance work and parenting while encouraging
them to review their way of working in order to achieve agood work-life balance. For example, we posted interviews
with female employees in our internal magazine, 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, in March 2015, for the fourth time we earned
Kurumin* certification under the Act for Measures to Support
the Development of the Next Generation.

Women
Total

In 2015, we started a new program for training young
employees, called the Young Executive Group. The program isdesigned to nurture management personnel with boththeoretical and practical capabilities over the medium- tolong-term.

The participants are chosen from among young employees
through an open call for applications. There are five target
criteria: a dream, strategy construction ability, ability to act,
collaboration, and ability to work in a global setting. The
participants acquire theoretical knowledge and tackle
specific initiatives relating to actual management tasks. Thisis the first year of the program, with 21 participants includingGroup company employees. They undertake various activities
while exchanging opinions with management personnel andexternal experts, among others. In this way, USHIO is
preparing a new generation of leaders to drive its
development in the future.

Communication

Communication with Lunch
USHIO has a longstanding practice of holding lunch meetings

Employees Using Childcare Leave
Men

Young Executives Group

2013

2014

2015

5
32
37

4
29
33

3
25
28

where the president and employees can communicate while
enjoying lunch together. In fiscal 2015, we expanded thescope of “Communication with Lunch” activities to include
lunches with division leaders and others to encourage evengreater dialogue between employees and management. Thisinitiative provides the president and other members of theTaking Childcare Leave
After the birth of our third child, I took two months’ childcare
leave to help my wife as it would have been a struggle for her tocope with childcare and looking after our home affairs. I wasvery happy to be able to sense the daily growth of our baby andour other children during my time off. I was also able to see how
hard my wife is working every day, which mademe feel even more grateful to her. The twomonths passed very quickly, but I feel it was avery important time for us as a family.

Yohei Yamada

Harima Division, USHIO Inc.

management team with an opportunity to communicate
directly about the company, the direction of business, andtheir thoughts and ideas about them. At the same time, it
allows employees to get to know the management. The
lunches are a valuable time, where participants can hear
about things that they usually don’t hear, from difficult topics
regarding the organization and management, to more private
themes such as personal approaches to work and working
style, and ways to learn English.

World Cafe
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

Education and Training for Human
Resources Development

draw attention to the importance of communication by having
people who do not know each other well come together in arelaxed atmosphere, engage in dialogue about certain topics,

Various training programs have been established to facilitate

and talk openly with one another.

the development of personnel capable of acting

In fiscal 2015, around 20% of all USHIO employees
participated in the program. In their feedback, participants
said they enjoyed having dialogue with other employees
whom they did not usually encounter, and that theexperience helped
them to notice newthings. The programis helping to fostera corporate cultureof smooth internal
communication andmutual respect.

independently and to make it possible to align “Build both aprosperous Company and prosperous employees.” In addition,
revisions were made to the skills required for each divisionand type of job, and a system was established at each officethat will facilitate training and evaluation of employees.
Regardless of the type of job, all employees are trained todevelop their ability to maintain an awareness of the problem,
a problem-solving approach that is not limited by pastexperience, and the ability to independently develop andimplement new proposals.

S u s ta i n a b i l i t y R e p o r t 2 0 1 5

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

UPS (USHIO Production System)
UPS (USHIO Production System) is the name of an initiative aiming to establish a unique new
production system that started at USHIO’s Harima Division from fiscal 2011. Amid a rapidly changing
business environment, it is important to be able to efficiently supply high-quality products in any
environment. To achieve this, we saw the need to think outside of the box and promote
improvements from a broad-ranging perspective by integrating our ongoing UPS, TPM and TQC
improvement activities, rather than repeatedly going over the same ground.

The main thrust of the UPS movement is ZD (zero-defects) activities, which seek to eliminate
defective work by stimulating individual autonomy and enthusiasm among employees and fostering
creative thinking. Traditionally, the movement consisted of three pillar groups. Namely, theManufacturing Technology Group, the Quality Assurance System Reform Group and the Education andEnlightenment Group. However, we have now reformed the activities within our business sites, and in
April 2014, we started a new initiative of small group activities within business sites to carry out
specific improvement activities by thoroughly promoting “full participation by all people at businesssites” and “visualization.” We have formed 91 groups within business sites and have been conducting
specific improvement activities. The activities have also contributed to developing human resources byencouraging autonomous management and reforming employee awareness of the front lines.
In fiscal 2015, we took further steps to invigorate small group activities, and encouraged female
and younger employees to take leadership roles in around 100 small groups. For this fiscal year, we
focused especially on uncovering workplace issues and using them as starting points to develop
improvements. This has led to actual gains in operational efficiency.
We have been focusing on human resource development since fiscal 2015. We believe that “inorder to produce good products, it is first necessary to produce good workers” and have therefore
been using a PDCA cycle to develop instructors, resolve various themes, and develop training
programs to ensure that fundamentals are in place.
Through the continuous, steady accumulation of activities, we will establish platforms for
manufacturing that can be visualized, and build up expertise. At the same time, we will continue
activities to enhance the efficiency and vitality of our workplaces.

Customer Service Center Initiatives
In our Customer Service Center we prioritize stable operation of customers’ equipment andcustomer 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 theworld, so we are taking steps to enhance our local service systems through links with our bases in
the U.S., China, Taiwan, and South Korea. While strengthening our local service systems, we willseek to provide enhanced proposal-based services. We will continue striving to increase customer
satisfaction even further.

Quality Assurance Divisions
Quality Assurance Divisions established at each business site maintain links with one another toexploit the good aspects of quality control knowhow developed at each business site. This enables
us to meet the exacting demands for quality required by our lineup of medical equipment whileachieving even more attractive quality and efficiency. Currently, our chief focus is on deepening our
relationships with overseas manufacturing companies even further, as we work to contribute to evenhigher levels of customer satisfaction through stable Group-wide quality assurance.

Furthermore, USHIO organized an in-house system for its initiatives for improving the efficiency
and speed of its ISO management system, and started new activities in fiscal 2014. We will maintainour mechanisms for swiftly responding to customer needs while meeting the requirements of ISO.
We will aim to achieve radical innovation not bound needlessly to rules and firmly anchored in frontline realities, as we strive to achieve even higher levels of customer satisfaction.

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Web http://www.ushio.co.jp/en/csr/society/customer.html (Working Together with Customers)
Web http://www.ushio.co.jp/en/csr/society/partner.html (Working Together with Business Partners)

Promoting Green Procurement andCompliance with International
Environmental Laws and Regulations
To ensure the smooth, stable supply of its products in theface of a diversifying body of overseas laws and regulations,
USHIO is focusing on timely collection of information, andbuilding a supply chain designed in response to theserequirements. We hold explanatory meetings responding topurchasing policy, green procurement standards, RoHS, andREACH regulations. We also conduct continuous activities
based on dialogue with suppliers to avoid problems arisingwith delivery schedules and product quality. Through theseWith regard to the Point Reader® blood analyzer, in addition
to the original blood serum ferritin measurement, we havealso opened new frontiers for application, including blood test
diagnoses for animals, and we continue to expand the scopeof potential.
Currently, we are moving ahead to create infrastructure to
support manufacture, sales, and repair of medical equipment
and external diagnostic reagents for both human and animalcare. We will continue to prepare a foundation for providing
value through light in various ways that contribute toimproving quality of life.

activities we aim to raise overall customer satisfaction.

Checking for Conflict Minerals

Furthermore, through production base Environmental
Management Systems (EMSs) at overseas Group companies,
we have strengthened our Group-wide management
framework for responding to customers’ requirements forenvironmental preservation. Today, we are working to respondaccurately to the varieties of target substances subject tochemical substance regulations and the applicable productcategories by using the AIS format to create systems for ourequipment products, which have many components, in orderto promote greater efficiencies in our management system.

In accordance with the clause on conflict minerals in the U.S.

Promoting CSR Procurement

Securities and Exchange Commission’s Dodd-Frank Wall Street
Reform and Consumer Protection Act, in August 2012, a final
rule was adopted requiring companies listed on securities
exchanges in the U.S. to disclose and report on their use of
conflict minerals in their products. Conflict minerals include
tantalum, tin, gold, and tungsten, produced in the Democratic
Republic of the Congo or adjacent countries. The law has
been enforced since January 2013. USHIO uses significant
quantities of tungsten in its electrodes, and has therefore
responded by strengthening its surveys on suppliers’ use ofmaterials in these and other components. We have been

From the fiscal year ended March 31, 2013, the Green

reporting the survey results using the EICC/GeSI* Conflict

Procurement Committee was renamed the CSR Procurement

Minerals Reporting ledger sheet.

Committee, as we implemented green procurement as part of

In November 2013, we formulated our Basic Policy
Statement for Conflict Minerals, and we have been promoting
coordination on this policy within the Group, including withGroup company USHIO Lighting.

our CSR Action Plan. In the fiscal year ended March 31, 2014,
we analyzed our customers’ expectations of us in terms of
CSR initiatives. For the fiscal year ended March 31, 2015, weestablished a CSR Procurement Policy to further ensure that
we conduct CSR procurement.

BCP Initiatives

In December 2014, we held explanatory meetings for
suppliers at the Yokohama Division, Head Office, and theHarima Division regarding revisions to our green procurement
standards and CSR procurement. For revisions to the USHIO
green procurement standards, we explained the need for a
fresh review of these standards due to legal and regulatorychanges, as well as additional chemical substances that
suppliers must verify. In terms of CSR procurement, weofferedexplanations of the
USHIO CSR
procurement policy
and conducted asurvey of CSR
initiatives.

The Great East Japan Earthquake of March 2011 taught us a

Harima Division

Product Development Related to
Biomedical QOL Improvement
In fiscal 2013, we established an independent business unit forbiomedical operations. We began development of medical
equipment starting with the TheraBeam 308® excimer light phototherapy device, and since obtaining various medical approvals, wehave been developing a range of business infrastructure.

powerful lesson on how entire industries can be impacted by
the inability to supply just one component. USHIO INC.
commands extraordinarily large market shares for many of its
light source products used in various industries. Recognizing
our important responsibility to ensure stable supplies of theseproducts, we have been actively promoting business continuity
plans (BCP).

In April 2012, we established a dedicated, companywide
committee to formulate a business continuity plan, mainly forthe light source business, including building systems to enable
minimization of damage and swifter recovery and enable
coordination between each business site in the event of amajor disaster. In April 2014, we formulated the USHIO INC.
BCP (business continuity plan), with a primary focus on our
main offices. The BCP stipulates organizational structures foreach kind of role, including labor, fund procurement, andpublic relations, and we continue to revise the structure andour responses through regular drills. Our next step is to look at
our response to other kinds of risk (natural disasters andhuman-related incidents), and how to implement it throughout
the Group. With respect to information security, for example,
we have made our business process systems more robust
against disasters and faults, and have bolstered our network
infrastructure and internal data assets as part of an ongoing
effort to ensure stability across all aspects of our operations.
S u s ta i n a b i l i t y R e p o r t 2 0 1 5

19

Environment
Environment

ENVIRONMENTAL ACTIVITIESThe USHIO Group has defined a vision of where it wants to be in 2020, and isstrengthening its initiatives to contribute to the realization of a sustainable society
through its core operations.

2020 Environmental Vision
The USHIO Group formulated its 2020 Environmental Vision with the goal of becoming acompany able to contribute through its business activities to the realization of a low-carbon,
recycling-oriented, biodiversity-preserving society by the year 2020. USHIO has been promoting
Phase Four of the Environmental Action Plan since April 2013.

Phase Four of the Environmental Action Plan
In setting our objectives for Phase Four of the Environmental Action Plan, we focused on
production efficiency, assuming power shortages in light of the power supply situation following
the Great East Japan Earthquake, and set out the following four key themes.

Phase Four of the Environmental Action Plan
Expand Sales ofEnvironmentally
Conscious Products• Create Super Greenproducts• Increase ratio ofenvironmentallyconscious products
among net sales

Global WarmingCountermeasures

Chemical SubstanceManagement

Resource Conservation
and Biodiversity
Preservation• Reduce CO2 emissions atbusiness sites•R educe CO2 emissions
due to distribution• Enhance reliability andefficiency of CMS• Enhance customer
response regarding
chemical substancemanagement• Reduce waste emission
volume by unit sales• Promote stakeholder
engagement*• Social contribution
activities• Biodiversity preservation

Committees for Each Measure Promote Activities
Green Products
Committee

Global WarmingCountermeasures
Committee

Fiscal 2015 was the second year of the plan.
Among other achievements, compared to fiscal
2013 we achieved a 7% reduction in CO2emissions (per unit sale) through efforts at our
main production sites, continued to create Super
Green products, and reduced waste emissions by
7% (per unit sale). Further information on our
activities and progress through fiscal 2014 arereported on our website. From 2016 onward, we
will continue to explore our four themes, and after
ascertaining the status of our Group companies ineach region, we will start on Phase Five of theEnvironmental Action Plan, with new targets.

CSR Procurement
Committee

3R activities at eachbusiness site

Changes CO2 per Base Unit (Group)(t-CO 2)(%)
30,00029,000105

29,423100

28,000100

98.5

27,16528,05693.0

27,00085

25,00080

24,0002013

CO2 emissions  

2014

2015

Base unit

USHIO is working to reduce CO2 emissions at its business sites through energy-saving activities.
Recently, in addition to this, there has been a call to grasp indirect CO2 emissions that occur
throughout the product lifecycle, for example, when it is being used. This change will affectcorporations by widening the scope of data collection from energy used at business sites toinclude all phases from component procurement to product distribution, use, and disposal. In
addition to the previous aspects for management, Scope 3 includes GHG emissions
management relating to aspects such as use of products and materials, transportation and20

S u s ta i n a b i l i t y R e p o r t 2 0 1 5

90

26,000SCOPE 3 Initiatives

movement of people.

95

75

Web http://www.ushio.co.jp/en/csr/eco/manage/index.html (Environmental Management System)
Web http://www.ushio.co.jp/en/csr/eco/effect.html (Global Warming Countermeasures)

SCOPE 1, 2, and 3 (Main Group Companies in the fiscal year ended March 31, 2015)
SCOPE 1SCOPE 2SCOPE 3Purchased
goods andservices

Category

Capitalgoods

Fuel and
Upstream
Waste
energy-related transportation generated in
activities notandoperations
included in
distribution
Scopes 1 and 2

BusinesstravelEmployeecommuting

Use of soldproducts

End-of-life
treatment ofsold products

t-CO2

2,497

25,742

368,156

14,519

6,502

427

492

720

2,153

601,639

9

Percentage

0.24%

2.52%

35.99%

1.42%

0.64%

0.04%

0.05%

0.07%

0.21%

58.82%

0.00%

Up until now, under Phase Four of the Environmental
Action Plan, we have focused on reducing CO2 emissions
from distribution. We recognized the importance ofascertaining the Scope 3 CO2 emissions, and started survey
and analysis of these in fiscal 2012. In fiscal 2014, we
ascertained the Scope 3 CO2 emissions for the USHIO Group(above table). Under the new Phase Five of theEnvironmental Action Plan, we will work to increase theaccuracy of this information and examine measures for also
reducing our indirect CO2 emissions.
Currently, solar power generation is occurring at two
locations. We will continue steps to introduce renewableenergy measures, including increasing the number of sitesthat use renewables.

evaluate changes in water usage at our production sites andCO2 emissions analysis at production site offices, which wehave used to develop energy saving measures and so forth.

We conduct continuous data collection and monitoring of
CO2 emissions in water usage, and waste emissions at eachbusiness site. These data are used to share issues at eachsite and discover best practices, helping to improve
environmental operation efficiency. These activities form thefoundation of environmental management at USHIO.

CHRISTIE DIGITAL SYSTEMS, INC. (CDSU)
Wireless Thermostat for Air Conditioning System

CHRISTIE USA has installed a new air conditioning system that
can appropriately monitor the temperature and air
conditioning levels for the entire head office building and

ECO-SYS – USHIO’s Environmental
Management Information Systemwarehouse to reduce energy consumption. The system uses awireless thermostat that can track, monitor, and report on

USHIO is the subject of numerous surveys regarding its

energy use in the air conditioning system 24 hours a day soenvironmental impact, from corporate evaluationthat problems can be resolved immediately, even from aorganizations, and also as part of our customers supply

remote location, thereby increasing energy efficiency.

chains. We also conduct information disclosure for the entire
environmental performance and environmental management

LED Lighting in the Employee Car Park andOther Areas

indicators in line with the Environmental Action Plan. To meet

CHRISTIE USA has replaced the lights in the employee carthese requirements, we introduced the ECO-SYS

park and wall lighting in company buildings with LEDs. This

environmental management information system in 2006. This

has improved the appearance of the company buildings andsystem not only enables central management of the USHIO

made the car park lighter and safer to use. The head officeGroup’s environmental information, but also acts as a tool to

No. 1 Building car park has achieved a 64% reduction in

support progress management on environmental targets atelectricity use following the changeover to LEDs, and the No.

Group companies and business sites, such as energy saving

2 Building has achieved a reduction of 87%.

USHIO Group, and manage progress on targets for

At the same time, LED lighting has also been used in a
project to extend the offices of
the Legal Division. In the working
Development of ECO-SYS Use
areas, the LED lighting has
2006
2010
2013
2015—
incorporated sensors to detectsunlight, enabling the same level
ECO-SYS introduced
Progress report system Analysis tool
Development into
introduced
a platformof brightness as usual but withlower power consumption during
Increasing quantity
Increasing quality
fine weather.
CHRISTIE USA aims to achieve
Follow-up on Environmental
theenergy saving targets of Phase
Action Plan progress
Environmental datacollection
Fourof the Environmental Action
ESG evaluation responseImprove environmental
Plan through these initiatives.
and waste reduction. The reported results have helped toCompilation ofcollected data easure environmental impact
MReduce environmental impact
Evaluate Group-wide
performanceefficiency

Analysis of compiled data
Dialogue informed byenvironmental dataS u s ta i n a b i l i t y R e p o r t 2 0 1 5

21Society
Society

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

The USHIO Foundation
The USHIO Foundation was established in 1994 tocommemorate the 30th anniversary of the founding of
USHIO. As globalization progresses, the foundation willcontribute to society by assisting the development of thenext generation of human resources, including overseas
students, who will be responsible for leading the world in
the future, and promote further interaction and mutual
understanding between Japan and other countries.

In fiscal 2015, the foundation provided scholarships to 46 graduate students (including
overseas students) and 11 students in specialized courses at colleges of technology. So far, 488
scholarship students have been accepted, and we continued to focus on calling for scholarship
applicants from schools in areas affected by the Great East Japan Earthquake.

USHIO INC.

Holding a Workshop at Tsukuba Science Edge 2015
On March 24, 2015, USHIO participated in Tsukuba Science
Edge, an annual event for junior high school and high school
students studying sciences. At the event, our New
Technology Development Department ran a workshop on“welding with light.” All participants had the opportunity touse one of USHIO’s excimer lamps to conduct anexperiment where the UV light caused two different
substances to bond at the molecular level. Great cheers
went up at the moment when the two substances fused together. In a feedback questionnaire,
94% of the students said they found the workshop to be “extremely worthwhile” or “worthwhile.”
We believe it provided a valuable learning experience that opened students’ eyes to the potentialof light.

Receiving Students for Factory Tours
On February 5, 2015, 40 first-year students from the Information Systems class at Shizuoka
Prefectural Gotemba High School visited our Gotemba Division. On their tour, the visitors saw afactory where large-scale equipment is manufactured and learned about the manufacture of ultrahigh-voltage mercury lamps, which are a type of discharge lamp, among other things.

Summer Holiday Children’s Tours
On August 8, we held the Summer Holiday Children’s OpenDay at Harima Division—a workplace tour for children of
employees. In addition to the factory and office tour,
children and their parents had lunch together in the staff
cafeteria and tried observing the spectra of different lightsources by making a simply prism out of a CD. It was a good
opportunity for the children of the employees to learn about
their parents’ workplace.

22

S u s ta i n a b i l i t y R e p o r t 2 0 1 5

Web http://www.ushio.co.jp/en/csr/society/community.html (Relationship with Society)Web http://www.ushio.co.jp/en/csr/society/contribution.html (USHIO Group Support for Culture and Learning)

NIHON DENSHI GIJUTSU CO., LTD. (NDG)
Bamboo Grove Maintenance Volunteers
At NDG, employees eachyear gather to participate
in volunteer activities formaintaining a bamboo
grove. The initiative tomaintain the bamboo
grove in Nakai Chuo Parkin Kanagawa Prefecture
started in 2007, and this year was conducted for the 11th
time. The number of volunteers grows each year, and NDG
plans to continue contributing to maintenance of wooded
areas, which make up 40% of the area of Kanagawa
Prefecture.

USHIO HONG KONG LTD. (UHK)

Tree-Planting Activities on Lantau Island, Hong Kong
UHK members participatedin a volunteer tree-planting
activity on Lantau Island,
the site of Hong Kong
International Airport.
Around 40% or 440 km2 ofHong Kong is designatedas a national nature park,and nature in the park is managed strictly by the government.
However, frequent forest fires have prompted privateorganizations to conduct tree-planting activities with special
permission from the government. UHK members helped with

CDS also conducted aChildren’s Art Gallery featuring
posters created by employees’
families and children, held alottery to raise donations, andproduced a video about
United Way’s future initiatives.

Charity Barbecue
The CDS-UK office held a charity barbecue at its workplace
on August 15, 2015 to raise funds for the supporting people
entering the London Marathon (a charity marathon). With
support from many employees, including a charity group, theevent managed to raise one quarter of the target amount.
CDS-UK plans to continue these kinds of activities in future.

USHIO ASIA PACIFIC (THAILAND) LTD.
Completing a Charity Marathon
On February 8, 2015, UAPT
participated in a charity
marathon held in Lunpini
Park in Bangkok. The event
was organized by
Thailand’s largest cinema
chain, Major Cineplex
Group Plc., which put out acall on its website for participants from movie theaters andrelated equipment companies. Almost all of the participation
fees were donated to buy wheelchairs for children in needthrough an NPO.

the planting of around 50 saplings.

USHIO PHILLIPINES, INC. (UPI)CHRISTIE DIGITAL SYSTEMS, INC. (CDS)

In the Philippines, many

CHRISTIE Community Garden
At a community garden
started by CHRISTIE
Canada’s Facility
Department in April 2013,
staff cooperate with one
another under a “Health,Wellness, Green Initiative
Participation Drive” to plantvarious vegetable and flower seeds in unused spaces. The
program continues to expand, with a dedicated wiki website
for participants, featuring photographs of vegetable andflower growth and a guide to harvesting, as well as recipes
using the harvested vegetables.

Annual United Way Campaign
CHRISTIE Canada continued again this year to provide
outstanding community support through the United Way
Campaign. CHRISTIE’s initiative sought to address thefollowing issues under the 2014 theme of “Healthy Kids.”
Bullying in schools
Addressing the decline in education (literacy)
Child poverty

companies take part invarious activities during
July, which is volunteering
month. UPI has won theBest of SCR (Social
Company Responsibility)
award at its industrial parkeach year. This year, UPS volunteered in a blood donation
drive, a prison visit, and soup kitchen program.

USHIO KOREA, INC. (UKI)
Welfare Facility Visits
UKI visited the Young
Deung Po Welfare Facility
in Seoul again in 2015. Thistime, UKI brought boxedlunches to elderly people
living alone who tend toskip meals. It was a good
opportunity to consider
that elderly people nearby are facing poverty and loneliness,and that there is something that everyone could do to help.
UKI plans to continue this activity.

S u s ta i n a b i l i t y R e p o r t 2 0 1 5

23

Research and Development / Intellectual Property

Research and Development
The main targets of the Group’s R&D are light sources for industrial applications
for development and production, which include work use and application of
optical applications in electronic and electromechanical equipment, moving
ahead with development of indispensable peripheral technologies anddevelopment for commercialization of optical units, optical equipment andsystemization. We keep abreast of the latest developments in markets andtechnology and conduct strategic R&D activities. We have an organization thatenables interaction among the R&D teams from different product groups toencourage development of new kinds of light sources and equipment.

R&D expenses(billions of yen)
12
108

Temperature measurement module for
halogen heaters measuring accurately
while adjusting for ambient light
The USHIO Group has developed theworld's first temperature measurement
module for halogen heaters thatmeasures the temperature of heatedobjects while correcting for the impact of
ambient light to provide accurate, noncontact measurements. This not only
enhances the quality of temperature
control, but opens the way for use of
halogen heaters in applications that had
not been possible with conventionalradiation
thermometers
because of
inaccurate
measurements.

8.9

8.6
6.7

6
4
2
0

Achievements in Fiscal 2015
LED bar unit for crop raising
In recent years, due to “unseasonable
weather resulting from global warming”
and “growing awareness of food safety,”a plant factory that makes it possible tofarm plants and vegetables in a planned
manner without agrochemical use by
artificially controlling the cultivation
environment, is attracting attention.
USHIO LIGHTING has been researching
LED light sources for use in plantfactories, and has developed the world’s
first LED unit for cultivating grain such as
rice, fruits, vegetables, corn, and pulses
with high-luminous-energy, a
PPFD (photosynthetic
photon flux density) ofover 1,000 μmol/
m2/s*.

10.8

9.9

2011

2012

2013

2014

2015

High luminescence, lightweight
4K30 projector developed for rental
staging
CHRISTIE DIGITAL SYSTEMS CANADA
INC., a wholly owned subsidiary,developed the Christie® Boxer 4K30
with high luminescence, 3DLP picture
quality in a compact, lightweight yet
robustly housed design. This
projector for rental stages, such as
those used at concerts, theme parks
and projection mapping, uses NFC
tracking to enable users to monitor
the use time and serial numbers ofindividual lamps, making it possible
to rapidly exchange lamps on-sitewithout having to stop shows.

*At an irradiation distance of 200 mm

Intellectual Property
The USHIO Group’s policy on intellectual property is as follows:

1. Contribution to earnings

No. of patent applications/patents registered
250

219

Give strategic advice and proposals autonomously to contribute to theCompany’s earnings.

2. Acquire effective patent rights
Conduct patent right acquisition activities with an eye to utilization, acquiringand maintaining intellectual property that can contribute to activities in M&As,
new businesses, and existing businesses for the entire Group.

3. Rigorous intellectual property compliance
Conduct survey and analysis of other companies’ intellectual property tovisualize intellectual property risk and ensure rigorous intellectual property
compliance.

24

S u s ta i n a b i l i t y R e p o r t 2 0 1 5

219

200

150

151

202
167

216 212

149

147

121

100

50

0

2010

2011

2012

No. of patent applications
No. of patents registered

2013

2014

Third-Party Opinion

Sachiko Kishimoto

Executive Director
and Chief Secretary,
Public Resources Foundation

A 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 private-sector think tank and studies
in the United States. Her present work involves, among other areas, the developmentof socially minded capital flow, including donations, NPO funding and social
investment, as well as corporate social responsibility. In addition to membership in
the Cabinet Office of the Government of Japan’s Joint Societal Development Advisory
Committee, she serves as director of several non-profit organizations, including theJapan Fundraising Association and the Japan Association of Charitable Organizations.

This year marks the first time I’ve been asked to offer thethe integration of management and CSR to discuss policies

third-party opinion for USHIO. Allow me to offer myregarding the possible social impact on other stakeholders

opinion on the content of the Sustainability Report 2015 asas well, detailing what USHIO has construed the probablean outside citizen from an NPO/NGO perspective.

effects to be and the extent to which it has targetedFirst, in the Top Message, USHIO shows that it recognizes
the importance of a management base for the promotion of

measures for addressing them.
Third, under the section “USHIO’s CSR,” USHIO has

CSR in the drive to realize its medium-term management

clearly listed an overview of its CSR Medium-Term Plan andplan announced in May 2015, and reveals how enthusiastic

key points for initiatives under its CSR Action Plan,

top management is about it. I agree with USHIO’s recognition

launched from the fiscal year ending March 2016. Whyof efforts to safeguard management transparency, concern

were these points deemed important? How do they link tofor human rights and diversity, and supply chain

the direction of management plans, priority business andmanagement as vital issues, particularly given its desire to

the promotion of new businesses? In light of the direction

develop activities going forward as a global company.

stated in the Top Message, I found myself wanting a more

Second, while the feature articles focus in on theconcrete explanation. Also, in this Sustainability Report,

centerpieces of the medium-term management plan—thewith the exception of a few areas, such as employment

Solid State Lighting and Biomedical businesses—when

rates for persons with disabilities and work-life balance,

discussing the social value and high future potential of

the reporting of numerical targets and results for individual

USHIO’s pioneering businesses, it is probably a good idea

USHIO CSR initiatives is fairly abstract. Accordingly, from ato also discuss the social costs associated withstakeholder’s standpoint, it is hard to determine whether

development of these businesses. For example, sinceor not USHIO made steady progress on its CSR initiatives

USHIO will promote M&A to expand its LED and LD

for the fiscal year ended March 2015. In the future, when it

product lineup, I would also like to hear about

comes to CSR issues deemed material* in nature by USHIO,

employment and customs in this expanded business base

I look forward to a clear detailing of why these issues are

network, and about initiatives for strengthening supply

material in how they connect to management strategy,

chain management globally. Regarding growth divisions set

along with specifics concerning plans, targets, and progressfor development in the coming years, beyond simply

status for the reporting year.

offering new value to customers, I think it is essential for*Material: Initiatives that match the degree of importance for stakeholders
and companies to level of priority.

Nobuyuki Kobayashi

Response to Third-Party Opinion

Director, Officer in Charge of CSRThis year, Public Resources Foundation Executive

Based on this guidance, we will take steps to clarify

Director and Chief Secretary Sachiko Kishimoto for thetargets that tie directly to social contributions thatfirst time offered USHIO her opinion of our Sustainability

highlight the unique character of our businesses, andReport 2015, for which we are extremely grateful. Since

strive for robust dissemination of more specific2010, USHIO has strengthened efforts designed to

information. With respect to global supply chain

merge management strategy with CSR issues. Ms.

management, together with further strengthening

Kishimoto has offered guidance on rating the importanceinitiatives, we will strive to create Win-Win relationshipsof CSR topics and the establishment of specific targets.

in this area.

S u s ta i n a b i l i t y R e p o r t 2 0 1 5

25

Published by: 
CSR Department, Risk Management Office,
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

http://www.ushio.co.jp/en1509S①