SUSTAINABILITY REPORT 2016
Year Ended March 31, 2016

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USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

FeatureThird-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

CSR Action Plan

CONTENTS
President’s Message

2

CSR Management

4

CSR Action Plan
13

Governance

15

PeopleQuality

4

‌
USHIO
Group Management Philosophy andCSR Management

18
20

Environment

6

New Medium-Term CSR Plan

24

Society

Feature8

USHIO’s People Initiatives

11‌Contributing
to the Environment throughProducts and Services

8

13

Third-Party Opinion

27

Research and Development andIntellectual Property

28

Corporate Data

29

Editorial Policy▍Editorial Policy
In choosing the material for Sustainability Report 2016, we continued on from fiscal 2016 in making an effort to report in greater depth on the correlation between
management and CSR issues.
In addition, we have taken into account the ease of reading reports on PCs, and from this fiscal year, we will publish an online version of our sustainability report. In thesame manner as with other reports hitherto, the reader is also able to download this report in PDF format.
We have also 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 toread for a wide stakeholder audience.

▍Scope of Report
All USHIO business sites and Group companies worldwide▍Period of Report
This report basically covers from April 1, 2015 to March 31, 2016, but also includes some activities prior to this period and some activities in fiscal 2017.

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USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

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

Kenji Hamashima
President and Chief Executive Oﬃcer

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

CSR Activities Form the Basis of Management for Supporting Business GrowthWithout a stable business foundation and growth, it would be near impossible to consistently provide value throughthe development of superior products. Under its medium-term management plan (through the ﬁscal year ending
March 31, 2019), USHIO aims to transform into a highly proﬁtable company and has set targets for ¥20 billion in
operating income on net sales of ¥230 billion, for an operating income ratio of 8.7% by ﬁscal 2019. USHIO is pursuing
new growth opportunities while maintaining and improving earnings capabilities in existing businesses.
The USHIO Group's CSR activities are the basis of management and the foundation for business growth in line with theobjectives of the medium-term management plan. Starting in ﬁscal 2016, USHIO formulated the CSR Action Plan
based on the ﬁve pillars of governance, people, quality, society, and the environment, and clearly positioned this planas the basis of management for supporting business growth.
Based on its medium-term management plan, a fusion of business strategies and CSR objectives, USHIO aims todevelop further as a company while advancing social responsibility at the same time.

FeatureCSR Action Plan

Third-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

A History of Business Growth Consistent with Changes in Society
Looking back at USHIO's CSR activities, it is evident that they are rooted in the spirit of manufacturing. Our activities
aimed at providing superior products have led to improvements in quality that fulﬁll our responsibilities to ourcustomers as a manufacturer. At the same time, we have aggressively pursued environmental initiatives with the aim of
reducing our burden on nature.
Moreover, USHIO has expanded the scope of its initiatives to encompass governance, society and people in order togrow as a company, meet the expectations of stakeholders, and fulﬁll its increasing social responsibilities bystrengthening corporate governance through better transparency regarding the Board of Directors and greater
dialogue with shareholders, by encouraging Group companies to give back to their local communities, and by
maintaining a positive work environment and oﬀering training to employees.
As a Group, we are advancing the globalization of management, promoting diversity through personnel exchanges
among employees of diﬀerent backgrounds, formulating green procurement standards to minimize our environmental
impact based on the laws and regulations of each country, and strengthening CSR procurement based on fair andproper transactions on international markets.
To remain a truly global company, USHIO partially amended its 10 Action Guidelines in December 2015 to reﬂect
support for the Universal Declaration of Human Rights and the Guiding Principles on Business and Human Rights,
based on the understanding that all people must respect each other's rights and to align awareness of human rights
with international norms. In addition to setting guidelines for respecting the rights of employees, suppliers and all otherstakeholders, we aim to foster a corporate culture that respects diversity and its role in promoting innovation.
USHIO has engaged in CSR activities in tandem with its growth as a Group and changes in society. We believe it isimportant to continue advancing CSR activities as a fundamental tenet of management and business and as a primary
driver of our growth as a company.

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USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

Deeper and Broader: Stepping Up Group Activities Based on the New Medium-Term
CSR Plan
USHIO launched a new medium-term CSR plan in fiscal 2017. To take CSR one step further at USHIO, the Company
aims to “dig deeper” by redoubling efforts to address key matters that have been screened again as priorities fromamong initiatives to strengthen the management foundation, including the seven topics it introduced in 2015
(management transparency, communication with stakeholders, human rights and diversity, human resource
development, supply chain and CSR procurement, customer satisfaction, and improving the ISO management system).
In addition, the Company is “broadening” its scope of CSR activities while sharing more information among USHIOGroup companies scattered around the world.
In going “deeper,” USHIO has re-examined the importance and priorities of its initiatives by interviewing members ofcommittees who are involved in CSR procurement and efforts to combat global warming, gathered internal information
via surveys of Group companies, and discussed issues with stakeholders outside the Company. Through this process,
USHIO has selected five key issues to address: green products, human resource management, supply chain
management, prevention of corruption, and corporate governance.
While following through on ongoing initiatives, USHIO will dig “deeper” into the aforementioned initiatives. The
Company will constantly reinforce these initiatives through the PDCA cycle, setting key performance indicators (KPIs)
for each initiative, drawing up and implementing plans, and then disclosing the outcomes.
Meanwhile, “broadening” the scope of our CSR activities is a bottom-up trial for the entire Group. USHIO engages in
Renpo Keiei Management (roughly translated as Mountain Peak Management) where everyone learns from each other,instead of trying to normalize all aspects of operations at Group companies. Our CSR activities take a similar approach.
With the assumption that Group companies will respect diversity in their initiatives, we aim to create a common
framework for approaching CSR activities, including the sharing of more information among Group companies while
conducting surveys, taking a more methodical approach to our initiatives, and promoting the PDCA cycle. By spreadingawareness of the CSR Action Plan across the Group, USHIO shares its vision of CSR activities.

FeatureCSR Action Plan

Third-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

Broad Range of Initiatives Aiming for Sustainable Development
As a specific initiative for CSR activities and as a part of our efforts to strengthen corporate governance, we havetransitioned to a company with audit and supervisory committee structure from fiscal 2017. We did this in order toaccelerate decision-making by reinforcing the oversight functions of the Board of Directors and delegating decisions
on certain important business matters to directors and executive officers in charge of business execution. A majorityof the members on the Board of Directors are now independent outside directors.
One of the most important issues we have focused our efforts on is human resource development. With the aim ofbeing a group of people with strong aspirations that make dreams a reality, we have put in place the “Young
Executives Scheme” to equip young employees with the global awareness of CEOs.
In fiscal 2017, USHIO made major changes to its personnel system. The Company changed its seniority-based pay
system into a system that seeks to maximize the capabilities and ambitions of each and every employee within aframework that recognizes high-performing employees.

Moreover, USHIO promotes diversity through equal opportunities for human resource development and activity
regardless of gender or ethnicity. The Company also encourages the hiring of people with disabilities, offers an
updated re-employment system, and focuses on promoting women in the workplace. While emphasizing measures
based on promoting the individuality, independence and autonomy of each Group company, USHIO proactively
promotes locally hired employees into management and upper management (i.e., executive officer) positions.
USHIO made an effort to improve work styles accompanying our head office relocation in March 2016. As a result, weare increasing the efficiency of business operations, and are moving quickly to create a framework for further growth.
In our business activities, we aim to contribute to society through the development of products that help raise thequality of life for people, such as blood analyzers and skin therapy devices that are getting regulatory approval in
Asian countries. We also do this by providing industrial solid-state light sources (LEDs, LDs, etc.) that conserve energy
and reduce waste, and by providing light solutions that advance next-generation plant growing businesses.

Helping Solve Social Issues through Business Activities
In September 2015, the United Nations adopted the Sustainable Development Goals (SDGs) while calling forcompanies to take action and help solve these priority issues affecting the world.
USHIO has declared its stance on corporate social responsibility, signing in October 2010 the UN Global Compact inagreement with its 10 Principles. Looking ahead, USHIO will continue contributing to the resolution of social issues
through its business activities.

As a light innovation company, USHIO aims to achieve sustainable development in harmony with society. We ask foryour understanding and cooperation as we continue to engage in business activities.
October 2016
Kenji Hamashima

President and Chief Executive Officer

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USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

CSR Management
USHIO Group Management Philosophy and CSR Management

FeatureCSR Action Plan

Third-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

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

USHIO Group Management Philosophy
The USHIO Group's approach to CSR can be seen in the management
philosophy underpinning all activities of USHIO and USHIO Group
members. In 1965, the year after the Company was founded, four keyemphases were created based on the desire to make USHIO an
indispensable company for everyone by drawing on the wisdom of
employees to grow. The wording of these four key emphases has beenrevised over the years to reﬂect the changing times.

intellectual property rights of third parties.

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

Approach to CSR

1. Build both a prosperous Company and prosperous employees.

USHIO aims to solve social issues and realize a sustainable society through products and services that use its lighttechnology. CSR activities are the management foundation of our business activities to achieve this mission, and are a
primary driver of our growth as a company.

2. Deliver products and services that are competitive in the global
market.

USHIO builds good relationships with its various stakeholders through communication, and aims to develop sustainablebusinesses as the USHIO Group together with local communities and society at large.

3. Contribute to society through superior products and innovative
research and development.
4. Expand proﬁts, corporate responsibility, and competitivenessthrough open and free-thinking business operations.

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

CSR Promotion Framework
USHIO has established a CSR Committee, which is chairedby the president. The committee decides on policies forthe whole Company relating to CSR initiatives. The CSR
Committee establishes subcommittees as needed tooversee practical implementation of the policies it has
decided, and discusses speciﬁc initiatives and ways topromote them.
At the 26th CSR Committee meeting held in May 2016,
the members reached an agreement on a new mediumterm CSR plan following a discussion about the next
initiatives to take after the previous medium-term CSR

plan ended on March 31, 2016, deciding to redouble
eﬀorts on matters that take precedence (materiality) andto broaden the scope of Group eﬀorts (boundaries).
USHIO intends to enhance corporate value from a long-term perspective through measures to strengthen its presencein ﬁelds where it aims to advance as a corporation while enhancing social contributions, and to come together as agroup determined to improve corporate value.

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USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

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

CSR Action Plan (Policy)
USHIO has created a CSR Action Plan (Policy) and taken steps to reinforce its CSR initiatives. Through dialogue withstakeholders, we have identiﬁed relationships between various social issues and our core businesses. To emphasize
carrying out initiatives in line with our business strategy, we have set out basic principles in our action plan, which weincorporate into the strategies of each division and department.
In formulating the CSR Action Plan (Policy), the CSR Committee and other related organizations investigated CSRrelated elements of USHIO's business activities from various angles, while giving consideration to the seven core
subjects of ISO 26000 and many other sources of guidance and guidelines. As a result, the Group's issues wereclassiﬁed under the ﬁve pillars of governance, people, quality, society, and the environment. These items are thenbroken down further into action policies. Currently, the CSR Action Plan (Policy) shows USHIO's CSR framework whileforming the underlying philosophy for business planning at each business division and Group company. The action
plan is modiﬁed each year to reﬂect the results of surveys.

FeatureCSR Action Plan

Third-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

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

Guidelines for initiatives for related issues
Strengthen information security

Promote business continuity management
Strengthen measures to prevent corruption
Provide information to shareholders on CSR activities
Strengthen Group CSR activities (share information,common targets, grasp needs, etc.)
Enhance disclosure of non-ﬁnancial information
Initiatives to maintain transparency on tax issues

People(Eradicate discrimination, respect diversity, respect therights of all people related to operations to survive andlive, eliminate harassment, worker health and safety,
prevention of child labor, forced labor, and slave labor,
avoid complicity in human rights infringements)

Eradicate discrimination, respect diversity to promoteroles for human resources in the company
Maintain a comfortable work environment (eliminate
harassment, ensure appropriate worker health and safety)
Implement human resource development tocontribute to maintaining and improving businessactivities over the long term
Promote work-life balance
Conduct human rights education
Strengthen monitoring of worker health and safety

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

Pure customer satisfaction improvement, with thegreatest emphasis on the customers' perspective

Quality target and plan development
ISO 9001 certiﬁcation for quality management
systems: transition to 2015 version and make
improvements (faster speed, slimmer organization)

Matters related to strengthening the supply chain(Promote green procurement and CSR procurement,

promote activities with an awareness of the basic policy
on conﬂict minerals, practice due diligence* on human rights)
Strengthen global quality assurance system
Product safety assessment
Enhance supplier CSR monitoring
Society(Maintain relationships with local communities,
involvement with international society, contribution toeducation, culture, etc., social contributions throughbusiness such as products and services)

Foster social awareness by encouraging active
participation in social contribution activities,
community exchanges, volunteer and pro bono activities

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.)

Targets and initiatives based on Phase Five of theEnvironmental Action Plan

Promote business in emerging countries

Promote participation in volunteer activities

ISO 14001 certiﬁcation for environmental
management systems: transition to 2015 version
Provide safe, secure and environmentally friendly
solutions through product development

Reduce CO2 emissions in business activities: reduce

CO2 by 3% from ﬁscal 2016 levels on a sales unit basis
Advance CSR procurement as a group
Strengthen chemical substance management

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

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USHIO INC. SUSTAINABILITY REPORT 2016

CSR Management

President’s Message

FeatureCSR Action Plan

Third-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

New Medium-Term CSR Plan

CSR Procurement Initiatives

History of the CSR Medium-Term Plan

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

Business Activities across the Entire Supply Chain

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

CSR Procurement Survey

In 2009, the Company formulated a medium-term CSR plan for incorporating CSR issues in management strategies. In
phase 1 (2010 to 2012), we focused our eﬀorts on “forming an infrastructure for CSR initiatives.” In phase 2 (2013 to2014), we worked to “dig deeper into CSR issues.” In ﬁscal 2016, we achieved the targets we initially set out in 2009
during phase 3 (2015 to 2016), which focuses on the “complete integration of management strategies with CSR
issues.”

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

In ﬁscal 2015, USHIO conducted a CSR procurement survey (questionnaires and interviews) among 613 suppliercompanies (90% response rate) at the Harima Division and Gotemba Division, and we conducted an evaluation of the
responses of each company in ﬁscal 2016.
In the ﬁscal 2015 survey, the evaluation criteria were expanded to include the business continuity plan, conﬂict minerals(as human rights and labor), and information security. The requirements for each evaluation item were also increased, and weascertained that the average points of the self-evaluation conducted by each company declined 0.7 of a point to 3.6 from 4.3 in thesurvey carried out in ﬁscal 2013. USHIO aims to continue striving to improve our mutual results by means of maintaining dialogue.

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

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

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

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USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

Deepening: Selection of Materiality

Green products,
green factorySpeciﬁc developments

management

Identify relevant products and manage
performance indicators such as sales
promotions

Chemical substance and waste
management

Reduce volume and manage volume used

Employee skill development program

In-house due diligence for humanrightsExternal due diligence for humanSupply chain
management

Prevent corruption

Corporate
governance

Example of progress

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

Human resourcerights (mainly supply chains)

CSR Action Plan

Third-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

Expansion: Share Information within the Group and Improve Performance

In our aim to “deepen” CSR activities, we have screened for initiatives of high importance and priority by gathering
information inside the Group, such as by interviewing members of committees involved in CSR procurement andmeasures to counter global warming as well as by conducting surveys of Group companies, while building on
interactions with external stakeholders. We took care in ranking our priorities based on an analysis of key initiatives
from both internal and external perspectives, in addition to balancing business growth and social contributions. As aresult, we have selected the following ﬁve initiatives as key issues to address.
Key issue

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

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

Implementation rateof measures

Strengthen information security

100

95%

Enhanced training programs, performancerelated management

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

89

95%

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

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

89

89%

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

85

95%

Strengthen monitoring of worker health and safety

85

89%

Promote business continuity management

83

74%

Strengthen measures to prevent corruption

83

74%

Initiatives to maintain transparency on tax issues

83

89%

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

83

89%

Promote work-life balance

80

95%

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

Promote CSR procurement

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

Update policies and guidebook forpreventing corruption

Create oﬃcial policy, provide guidance, andraise awarenessRespond to Corporate Governance
Code

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

For these ﬁve key issues, we have set KPIs for our initiatives after clarifying responsibilities in each division, and arepreparing to strengthen these initiatives in ﬁscal 2017.

Measures*1 Data compiled from 18 Group companies inside and outside Japan. The survey asked about the status and details
of initiatives based on the CSR Action Plan, as well as perceptions of their importance.
*2 Answers about importance were scored (“extremely important” = 3 points, “important” = 2 points, “normal” = 1
point), with 100 as the relative ﬁgure in the case that all 18 Group companies answered “extremely important” with54 points being the highest score.
Looking at a survey of the CSR Action Plan conducted as a part of information sharing about initiatives at each Group

company, we understand that a high percentage of Group companies have implemented initiatives that we regard asimportant. USHIO aims to raise overall CSR activities a notch while continuing to implement highly important initiatives.
USHIO is also committed to externally disseminating accurate information about its CSR initiatives.

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USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

FeatureUSHIO's People Initiatives
People are one of the pillars of our CSR Action Plan. The USHIO Group has focused on initiatives to eradicate
discrimination and respect diversity and the rights of all people. Amid the globalization of the USHIO Group, our approachto human rights must be in accordance with international norms. At the same time, we believe it is vital that we create apositive corporate culture that advances innovation through the implementation of initiatives that support the livelihoodsof our employees.

Respect for Human Rights

Basic Approach
At the USHIO Group, we believe respect for human rights is a fundamental underpinning of our eﬀorts to build trust
as a corporation that fulﬁlls its responsibilities to international society.
In this regard, the USHIO Group respects international norms, such as the Universal Declaration of Human Rights, theUN's Guiding Principles on Business and Human Rights, the 10 Principles of the UN Global Compact (human rights andlabor), and the Declaration on Fundamental Principles and Rights at Work outlined by the International Labor
Organization (ILO).
We believe the following descriptions exemplify the human rights that we must protect in our business activities andour relationship with society.
Maintain a work environment that facilitates work, prevent accidents at work, and prevent work-related
injuries or diseases
Prevent child labor, forced labor, slave labor and discrimination
Restrict excessive work hours
Preserve equality and non-discriminatory practices, respect diversity and eliminate harassment
Respect for freedom of association and the right to collective bargaining and ensure a minimum wage and alivable wage
Respect for fundamental human rights as deﬁned by the Universal Declaration of Human Rights, such as theright to life and liberty
Protect the rights of children and vulnerable members of society

FeatureCSR Action Plan

Third-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

Revisions to Our Guidelines as a Member of Society
In December 2015, we revised section three of our 10 Action Guidelines to clarify in writing our stance on humanrights, raise awareness of human rights among employees of the USHIO Group and disclose our stance to the public.

10 Action Guidelines as a Member of Society
3. We shall respect all the internationally recognized basic human rights relating to our business activities, andendeavor to create bright, safe and pleasant working environments.

The USHIO Group has put in place policies for respecting human rights to ensure will not directly or indirectly violate
human rights as deﬁned by the Universal Declaration of Human Rights.

Conducting Surveys about CSR Procurement and Conﬂict Minerals
As a speciﬁc example of our respect for human rights, we conduct the CSR Procurement Survey to investigate humanrights and conﬂict mineral issues in our supply chains.
Since its lamp electrodes use a large volume of tungsten, in 2013, USHIO created its Basic Policy Statement forConﬂict Minerals to address human rights violations in areas of armed conﬂict. In 2014, USHIO formulated the USHIOCSR Procurement Policy to raise awareness of human rights issues in procurement activities. We also engage indialogue with suppliers via the CSR Procurement Survey with the goals of advancing occupational health and safety at
suppliers, preventing child and forced labor, eliminating discrimination, allowing freedom of assembly and respecting
the right to life and liberty.

Practicing Due Diligence for Human Rights
In our business activities, it is necessary to keep a watchful eye on human rights issues in various processes, fromproduct development and material procurement to product disposal. USHIO engages in business activities that strictly
follow international norms for corporations with regard to protecting, respecting, and redressing the Guiding Principles
on Business and Human Rights of the UN that were endorsed in 2011.
The new medium-term CSR plan clariﬁes initiatives for conducting due diligence for human rights internally within thecontext of human resource management, as well as externally with respect to supply chain management.
More speciﬁcally, USHIO ascertains the status of occupational safety in the course of normal business activities atbusiness sites, as well as the status of human rights when evaluating business mergers and acquisitions. Based on the
results of the CSR Procurement Survey, USHIO's procurement and CSR divisions are constantly monitoring for humanrights violations at its suppliers.
USHIO will continue to conduct due diligence with respect to human rights issues in the future.

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USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

Conducting Human Rights Education
Respect for the human rights of stakeholders both inside and outside the Company begins with the actions taken by
our employees. In order to instill a corporate culture that respects human rights, USHIO conducts human rights
training that raises awareness of human rights among its employees.
In March 2013, we provided human rights training to newly appointed managers to improve their awareness of humanrights issues, including indirect issues related to conﬂict minerals, within the scope of our business activities.
In February 2016, we invited experienced experts to discuss ways of dealing with global human rights issues, andbrought together managers from domestic Group companies for training. Based on the actual experience of the
instructor, the training addressed approaches for dealing with human rights issues that must be monitored around theworld. The lecturers also briefed attendees on new trends, discussing patterns of behavior taken to address humanrights in business activities and methods for conducting due diligence for human rights. The training session was
attended by 189 employees, mostly managers. After the session, participants exchanged their thoughts and posedquestions in a Q&A, reinforcing what they learned in the session.

FeatureCSR Action Plan

Third-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

Third-Party Opinion
We asked a representative from an NGO involved in international human rights issues for their opinion about USHIO's
human rights initiatives.

Progress on Initiatives, But More Information Should Be Disclosed about Issues
As companies increasingly engage in business across borders, theirvalue chains become more complex, from product development toprocurement, ﬁnal disposal and recycling. In areas of low visibility inthis process, companies are prone to encountering human rights
issues. In 2011, the UN formulated its Guiding Principles on Businessand Human Rights, clarifying the responsibilities of corporations to
uphold human rights. These guiding principles have been reﬂected in avariety of international standards for businesses. Companies havegarnered attention for their initiatives to respect human rights.
USHIO has revised its 10 Action Guidelines to incorporate humanrights issues, and taken the big step forward of declaring that its
initiatives will be based on international standards. The Company has also
Amnesty International Japan
published its own thoughts on respect for human rights on its website.
Ms. Yoko Doi
Accordingly, USHIO has fully disclosed its proactive stance on
Fundraising andinitiatives for human rights both internally and externally. I look forward
External Aﬀairs Unit Chief
to seeing USHIO advance these initiatives while engaging in dialog withstakeholders whose human rights may be aﬀected by its operation, while
integrating its thoughts on upholding human rights in management and throughout its business activities.
USHIO's initiatives to conduct due diligence for human rights issues in line with the UN's guiding principles are not
new initiatives. USHIO has considered human rights issues for its employees and the local communities around its
business sites, and these considerations should permeate throughout its value chain so that suppliers inside andoutside Japan (and their employees) also respect human rights. Revising its Code of Conduct was the ﬁrst step,and I believe USHIO has been a model for other companies beginning to take similar initiatives for human rights.
USHIO has envisioned scenarios where human rights could be negatively impacted. USHIO must revise its internal
rules with respect to existing human rights, update areas in need of improvement, and strengthen its internal
systems. This must be done to prevent these scenarios from happening. If any of these scenarios actually occur,
USHIO should quickly address the issues.
To ensure the smooth functioning of its due diligence for human rights, it is important for USHIO that its
employees, as well as its suppliers and other parties involved in related business activities, have a soundunderstanding of human rights. For this reason, human rights training should be enriched further.
Initiatives to conduct due diligence for human rights are ongoing initiatives, similar to other risk management
systems. In this regard, I would like to see USHIO explain in more detail its commitment to human rights, evaluate
progress on its initiatives, and disseminate more information on not just achievements, but also challenges, tointerested parties.

10

USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

Together with Our Employees

Basic Approach
We would not be able to mark progress as a company without our employees. Our corporate philosophy that dictates
us to “build both a prosperous company and prosperous employees” aligns with the idea of being a group of highly
motivated people working to realize their dreams. Amid rapid changes in the business environment, we believe
sustainable corporate development depends on having respect for employees who have various value systems andcome from diverse backgrounds, as well as the creation of a culture that encourages the free-spirited exchange of
opinions. With 5,886 employees as of March 31, 2016, the USHIO Group respects the diversity of its employees andaims to create workplaces where they can leverage their abilities to the fullest extent.

FeatureCSR Action Plan

Third-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

Promoting Proper Conversations about Evaluations between Employees and Their Managers
In line with guidance from the Workplace Culture and Communication Improvement Organization, which consists ofmembers from across the Company, after employees complete the personnel evaluation process, they are given
questionnaires about their evaluator in a feedback interview.
By eﬀectively taking advantage of the opportunities presented by these feedback interviews, we expect to see an
improvement in relationships and communication between employees and their managers.

Reforms to the Personnel System
USHIO is reforming its personnel system in a bid to maintain and enhance business competitiveness while boosting theambitions of its employees to achieve more. The revised system will take eﬀect from the ﬁscal year ending March 31,
2017.
Our personnel system has changed to emphasizing “roles” more in evaluation criteria, and now uses speciﬁc progresstargets as benchmarks. We expect these changes to help maximize our performance as an organization, and believe
the evaluation of progress toward targets will lead to continued human resource development.
USHIO has strengthened its management foundation and taken various initiatives to prosper amid competition insideand outside Japan. By emphasizing performance more in its personnel system, USHIO aims to maintain and improvethe competitiveness of its businesses by motivating each and every employee to perform at the top of their abilities.

More than half of all employees responded to the employee questionnaire. Based on an analysis of the results, someproblems were identiﬁed with the evaluation process. The results of the analysis were used to improve the personnel
system and reﬁne the training and guidance provided to performance evaluators for ﬁscal 2017 onward.

To become a group of highly motivated people working to realize their dreams in line with our philosophy to “build

Through these feedback interviews, in addition to providing feedback on evaluation results, we aim to enhance themotivation of and growth opportunities for both employees and their managers by using the results to improve
communication and trust between employees and managers.

both a prosperous company and prosperous employees,” we have revamped our entire personnel system toconcentrate more on the training and eﬀective deployment of human resources.

To create a system that motivates and brings out the best in each and every employee, we clariﬁed an image of ourideal employee, and came up with a personnel system that places greater emphasis on employees who produce thestrongest results and play signiﬁcant roles within the organization.

Integrated Talent Management System
Managing personnel is an essential aspect of maintaining employee eﬀectiveness, including assigning the right people
to the job and training successors. Since 2015, USHIO has had an integrated talent management system thatvisualizes “talent” data for each employee along a timeline. The system is used to enhance ﬂexibility in organizational
management with consideration also made to changes in society.
Access to this data is restricted based on the user's work rank, and due attention is paid to protecting information
unrelated to employee work and training. By improving the human resource management process, we are creating afoundation for business development that addresses changes in the business environment while enhancing workplace
productivity, motivating employees to acquire needed skills and supporting their endeavors.

11

USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

FeatureCSR Action Plan

Third-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

Contributing to the Environment through Products and Services
USHIO recognizes that maintaining harmony with the global natural environment is one of its top priorities as a company.
Accordingly, we aim to achieve a sustainable society by incorporating environmental preservation activities into every
aspect of our business activities. Besides working to reduce the environmental impact of our business activities as amatter of course, we are focusing on developing and supplying environmentally beneﬁcial products and services. Looking
ahead, as one of our initiatives to help solve social issues through light solutions, we will continue to actively contribute to
the environment through our products and services.

Phase Five of the Environmental Action Plan
The USHIO Group formulated its 2020 Environmental Vision with the goal of becoming a company able to contribute
through its business activities to the realization of a low-carbon, recycling-oriented, biodiversity-preserving society by
the year 2020.

Leveraging this opportunity to provide solutions, we also aim to gain expertise on the plant growing business,in conjunction with driving the growth of our light solutions business for agriculture.
For Tomatoh Farm, the USHIO Group delivers LED light sources made by USHIO LIGHTING to the company's plantfactory for strawberry cultivation, which uses artiﬁcial light sources in combination with natural sunlight. By promoting
photosynthesis using LED light after sunset and in cloudy and other weather conditions, we are contributing to thestable cultivation of strawberries. In addition, we are gathering expertise on matters including the selection of
appropriate wavelengths and intensity of light, as well as irradiation techniques.
In addition to sodium lamps and LEDs, USHIO has amassed a large store of fundamental light technologies that cancontribute to the development of agricultural businesses. As with the investments in the aforementioned two
companies, in the course of providing these ongoing solutions, we seek to further enhance our fundamental
technologies by continuing to gather expertise on factors such as freshness, sterilization, and the control of crop
growth and composition. Furthermore, we will lay a solid foundation for broadening our ability to provide a wide rangeof solutions beyond plant growing, with a view to expanding our business in the years to come.

Our Environmental Action Plan establishes goals and targets for each theme by extrapolating back from ouraspirations for the ideal society we wish to realize. Guided by Phase Five of the Environmental Action Plan, we havebeen undertaking speciﬁc activities from ﬁscal 2017.
USHIO EUROPE B.V. and USHIO KOREA INC.

Sterilization of Ballast Water for Ships and Providing Solutions for Public Water
Supply Systems

Environment (CSR Action Plan)

Under the Environmental Action Plan, we have set the development of environmentally and socially beneﬁcial products
as one of the plan's themes, with the aim of providing safe, reliable and environmentally conscious solutions.
Speciﬁc examples of our initiatives to contribute to the environment through our products and services are presented
below.

Investments in Tomatoh Farm Co., Ltd. and Hokkaido Saladpaprika Co., Ltd.

Expanding Light Solutions for Agriculture

In ﬁscal 2016, USHIO invested in Tomatoh Farm Co., Ltd. and Hokkaido Saladpaprika Co., Ltd., both of which areconducting next-generation plant growing businesses. Against the backdrop of stronger calls for safe and reliable
foods produced in Japan, these two companies oﬀer compelling prospects for growth.
Hokkaido Saladpaprika is an operating company engaged in a paprika cultivation business in Kushiro City, Hokkaido.
The company cultivates paprika year round in a 23,000 m2 plant factory that uses natural sunlight.

Ballast equipment is used to maintain the stability of merchant ships plying theworld's oceans. Although this equipment is essential to safely operating ships
at sea, it has been noted that ballast water causes environmental problems bytransporting foreign marine microorganisms that possess varying degrees of
toxicity across diﬀerent oceans. When the ballast water is released into thesea, the foreign microorganisms can destroy the local food chain and thereby
disrupt marine ecosystems. According to data from the International Maritime
Organization (IMO), more than 5.0 billion tons of ballast water are transported
across the world's oceans every year.
In response, USHIO supplies ship equipment manufacturers with a sterilization
unit for ballast tanks that utilizes UV lamps and compact power supplies,
which are among the Group's fundamental technologies. We have amassed an
extensive track record, with products supplied primarily to customers in South
Korea and Europe. These sterilization units are superior to those based onelectrolysis and ozone methodologies, because they can sterilize not only
seawater but river water as well.

UV reactor delivered to a research
institution

USHIO delivers light source equipment that utilizes sodium lamps from BLV
Licht-und Vakuumtechni, which is a Group company. Through these products,
USHIO is boosting the cultivation of paprika seedlings and promoting
photosynthesis, together with contributing to increased eﬃciency.

Leveraging this fundamental technology, USHIO KOREA INC. is working topropose a UV reactor for use in public water supply systems in urban areas.

With almost all paprika consumed in Japan imported from abroad, there are

years, it has become clear that adopting UV reactors in the existing water treatment process will oﬀer both safety andcost advantages. This discovery has paved the way for USHIO KOREA's latest proposal. Going forward, the USHIOGroup will continue seeking to expand applications further.

high hopes for increasing the distribution volume of safe, reliable paprika
cultivated in Japan. We intend to take full advantage of USHIO's lighttechnologies to assist with the spread of domestically cultivated paprika.

Government research institutions are facing issues surrounding advanced water treatment as they seek to address
various environmental problems. In the course of examining improvements to the water treatment process in recent

An example of using sodium lamps tocultivate paprika seedlings

12

USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

WACOM ELECTRIC CO., LTD.

Developing and Promoting Solar Power Generation and Clean Energy

The Earth is blessed with an abundant supply of solar energy from the Sun. Research is currently being vigorously
pursued around the world to make eﬀective use of this energy. Notably, solar power generation has become
synonymous with clean energy and is being utilized worldwide.
Working closely with certiﬁcation institutions, research institutions, major solar cell manufacturers and materials
manufacturers, WACOM ELECTRIC CO., LTD. has been developing expertise on providing high-quality solar simulators
for testing solar cells for quite some time. Today, the company boasts a strong track record of product deliveries to abroad range of customers and a high market share. The company has been continuously contributing to thedevelopment of the solar power generation market, with a particular focus on expanding the high-end market.
In the past few years, the USHIO Group has proposed a solar simulator using LED light sources that will help toconserve energy and resources. Although these eﬀorts are still at the R&D stage, LED light sources oﬀer advantages
in terms of ﬂexibility, including the ability to adjust the wavelength of light. Accordingly, we are focused on bringing acommercial version of this product to market.
The need for solar simulators is increasing in ﬁelds where high-quality solar
simulations are required, such as testing the impact of solar light on living
bodies, in addition to the testing of solar cells. Moreover, the USHIO Group
continues to cooperate with the industry to address the standardization ofquality, which is essential to utilizing solar simulators on a global scale.
Looking ahead, we will continue to make a long-term contribution to therealization of a sustainable society.

Solar simulator
Standard model with an irradiancearea of 156 mm x 156 mm
WXS-156S-10, AM1.5G

FeatureCSR Action Plan

Third-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

13

USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

CSR Action Plan
Governance
The USHIO Group recognizes that promoting the sustainable growth of the Company and increasing corporate value overthe medium to long term, as heralded in our management philosophy, will bring satisfaction to all stakeholders. To thisend, the Company strives to ensure the transparency and eﬃciency of corporate management and to reinforce corporate
governance for realizing speedy and resolute decision-making.

Corporate Governance Framework
At the Annual General Meeting of Shareholders on June 29, 2016, USHIO transitioned from a company with audit &supervisory board structure to a company with audit and supervisory committee structure. The aim was to further
strengthen the supervision function of the Board of Directors as part of a drive to reinforce corporate governance inorder to ensure transparent and eﬃcient corporate management and speedy and resolute decision-making.
This transition will foster speedy decision-making by delegating decisions for certain important business matters fromthe Board of Directors to executive directors. It will also strengthen the supervision function of the Board of Directors
by ensuring that most of its members are outside directors. The new setup will also reinforce audit and supervisionfunctions by establishing an audit and supervisory committee with the authority to assess the legality and validity ofboard members in performing their duties.
The Board of Directors comprises 12 directors. Nine are not Audit and Supervisory Committee members (including
ﬁve outside directors) and three are Audit and Supervisory Committee members (including two outside directors). The
Board of Directors oversees decision-making and business execution for top priority issues, including basic
management policies.
Delegating decisions on certain important business execution to overseeing directors has accelerated decision-making.
At the same time, the executive oﬃcer system has led to more accurate and speedier business execution. USHIO
established the Executive Council and Group Coordination Council to discuss and report on priorities in businessexecution.

The Audit and Supervisory Committee, which comprises three directors (including two outside directors), audits andoversees directors' performance of duties in line with its own audit and supervising standards. USHIO appointed a fulltime Audit and Supervisory Committee member to enhance the eﬃcacy of audits by collecting information fromdirectors (excluding those who are also Audit and Supervisory Committee members) and employees and coordinatingsmoothly with the Internal Audit Department and independent auditing ﬁrm.

FeatureCSR Action Plan

USHIO's Internal Control Framework

Third-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

14

USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

Transition to a Company with Audit and Supervisory Committee Structure
USHIO added three independent outside directors and three independent outside Audit and Supervisory Board
members, and put in place a Remuneration Advisory Committee which consists of a chairperson and memberswith outside director comprising the majority in keeping with eﬀorts to reinforce corporate governance.
USHIO has transitioned to a Company with Audit and Supervisory Committee structure to strengthen the
supervision function of the Board of Directors and foster speedy decision-making by delegating judgments on
certain important business matters to executive directors and executive oﬃcers.
After the transition, the Company has an Audit and Supervisory Committee comprising at least three directors ofwhom a majority are outside directors.
USHIO appointed a full-time Audit and Supervisory Committee member to enhance the eﬃcacy of audits bycollecting information from directors (excluding those who are also Audit and Supervisory Committee members)
and employees and coordinating smoothly with the Internal Audit Department and independent Auditing Firm.

CSR Action Plan

FeatureThird-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

Compliance
At USHIO, we have established a Compliance Committee, and we work to foster a corporate culture that observes laws
and regulations, practices corporate ethics, and respects Company rules.
The Compliance Committee promotes education and training to enhance compliance and prevent violations before
they occur. USHIO aims to spread awareness of compliance through questionnaires and internal newsletters,
implementing a compliance awareness month, and holding a training conference once a year with lectures given byexperts on a variety of compliance topics.
Furthermore, we have been promoting a Company-wide drive to deal with compliance concerns, including potential
risks. To achieve early-stage solutions, we have established an internal consultation desk as well as an external
consultation and reporting desk, known as the USHIO Helpline.

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

Information Security
USHIO handles private information of frequent customers and is entrusted with their important Company informationand other information assets in the course of its business activities. We consider it a top priority to safeguard suchinformation from threats such as leaks and modiﬁcation. Moreover, because we recognize that information is an asset
that generates value and is a source for increasing corporate value, we are taking measures such as raising awarenessof information security among our employees and improving our risk management systems.
This kind of management requires three interlocking initiatives: rules must be determined, a framework must be
created for observing those rules, and awareness must be raised. We implement these based on our information
security management rules and make sure they are applied uniformly and consistently for the USHIO Groupthroughout the world.

15

USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

Third-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

CSR Action Plan

FeaturePeopleSpeciﬁc examples include the promotion of countermeasures, such as having a certain secure area at each businesssite where access is controlled with IC-embedded ID cards, antivirus measures for PCs, encryption of hard drives,
authorization management of operation systems, and strengthening the capacity to respond to disasters and faults.
Other measures include setting up automatic encryption for 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.
Moreover, USHIO supports those of its employees that seek freedom of movement by letting them work outside theoﬃce with tablets and other mobile devices. USHIO is working to ensure and strengthen the security of these devices

on par with the security of PCs, including by introducing management systems that enable employees to work outside
the oﬃce, such as video conferencing via smartphones and tablets.
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 to increase awareness among employees of the various
threats and opportunities where leaks may occur by implementing a Company-wide e-learning program andconducting training for new recruits together with level-speciﬁc training. We promote these initiatives by operating a
PDCA cycle to ensure that this awareness penetrates our entire organization at every level.
In our ISO improvement activities, which started from ﬁscal 2016, we are supporting eﬀorts to lighten workloads andstreamline and accelerate operations. From ﬁscal 2017 onward, USHIO is launching a project to advance reforms to
the way employees work with Groupware, while focusing eﬀorts on advancing innovation through changes in work
styles and seamless communication internally and externally.

At the USHIO Group, people are one of the pillars of our CSR Action Plan. We are working to eradicate discrimination;
respect diversity and the rights of all people; eliminate harassment; promote worker health and safety; prevent child labor,
forced labor and slave labor; and avoid complicity in human rights infringements.

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

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

Initiatives to Prevent Corruption
USHIO's 10 Action Guidelines for business activities commit us to conducting fair and equitable business transactions,and we have always taken vigorous action to prevent corruption. In 2010, USHIO became a signatory of the United
Nations Global Compact's 10 Principles, which include provisions for preventing corruption, and we support theprevention of corruption and bribery in a variety of business activities.
In our operations, we are concerned about the risk of bribery to promote sales of laboratory instruments, light source
products and medical equipment to universities and government agencies. In sales of medical equipment in particular,
we stress the importance of maintaining proper relationships with our customers, namely medical practitioners. USHIO
regularly trains its sales staﬀ on transparency guidelines with the aim of preventing corruption.
Newly appointed procurement managers rigorously further greater understanding of the Company's procurement
practices and work to prevent inappropriate relationships with suppliers. In operations related to the sale of our wide
range of products and the procurement of materials, there are concerns that eﬀorts to prevent corruption and bribery
will become increasingly complex as the Company's scope of operations expands overseas, owing to the possibility
that overseas laws and regulations pertaining to the prevention of corruption (especially FCPA in the US and UKBA in
the UK) will apply to other regions.
We conduct individual training on corruption prevention relating to each person's duties, and for manager-class

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016

0.55

0.00

0.00

0.00

0.26

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

Information about the total number of occupational safety training sessions (foreman training) conducted at eachbusiness site, as well as the implementation status as of the ﬁscal year ended March 31, 2016, is shown below.
(Currently, about 12 hours of training is given to each person.)
Occupational Safety Training Sessions (Foreperson Training)

employees, we also conduct training based on the strengthening of anticorruption laws globally that focuses on the
aforementioned concerns. In this way, we ensure that everyone throughout the Company is aware of corruption
prevention.

Total number of

Number of participants in ﬁscal

337

10

participants

Three business sites (Harima, Gotemba,
Yokohama)

2016

16

USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

Human Resource Development
In line with our management philosophy to “build both a prosperous company and prosperous employees,” USHIO aims
to develop independent, self-directed human resources through level-speciﬁc employee training programs that include,
career development training, selective training, several optional self-development education programs, and a diverse
range of other training programs.

CSR Action Plan

FeatureThird-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

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

Big Sister and Big Brother System
The Big Sister and Big Brother System is a long-running training system that has existed for more than 30 years at
USHIO for training new recruits. During the ﬁrst year of employment, veteran employees act as one-on-one guidancecounselors for new recruits to back them up. Female mentors are called Big Sisters and male mentors are referred toas Big Brothers. In addition to providing guidance about daily work activities, they support the growth of new recruits
by helping them solve issues related to their corporate work lives and any personal struggles. The employees selected
to be Big Sisters and Big Brothers also undergo training. The Big Sister and Big Brother System, in combination withother initial training for new recruits, has led to high retention rates of new employees in their third year (100% for
new employees that joined out of college in ﬁscal 2014).

Career Design Training

Education and Training for Human Resource Development

USHIO believes each employee can lead fulﬁlling lives while growing through their work, and that this begins with their own
aspirations. For this reason, we oﬀer career design training to employees by age group as a venue for them to think about
their medium- and long-term careers and life plans, from the perspectives of “Skill” (training to acquire the ability to performwork), “Can” (exploring one's own possibilities), “Will” (deciding what to do), and “Must” (conﬁrming what they should do).
In ﬁscal 2016, young employees in their ﬁrst, second or third year at the Company were paired with line managers
aged 50 and up.

Disclosure of Annual Employee Training Hours and Costs
The number of hours spent training employees at the Company, centered on training to improve their skills, and theamount spent on this training is detailed below for ﬁscal 2015 and ﬁscal 2016.
Fiscal 2015

Fiscal 2016

¥70,675,000¥96,995,000

Total time spent training

13,586 hours

43,445 hours

Total number of people who received training

1,333 people

1,834 people

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

17

USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

Diversity at USHIO

Work-Life Balance

Utilizing Global Human Resources

Support Programs

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 in promoting business overseas. We are therefore
working to develop and utilize global human resources by conducting international study programs and hiring
international students, as well as by providing opportunities for interaction between Group companies.

Employment of People with Disabilities
In the ﬁscal year ended March 31, 2016, USHIO achieved a ratio of employees with disabilities of 1.92%, slightly below
the legal requirement of 2.0%. We will continue taking steps to make our workplaces barrier-free, including installing
sliding doors in restrooms and handrails on stairways, and to promote employment of people with disabilities going
forward.

Re-Employment Systems
USHIO actively supports employment for seniors. We have established extended employment programs (SeniorPartner Program and Senior Expert Program) that are conducted through our re-employment system. These popular
programs allow employees to work up to the age of 65.
In November 2015, USHIO newly established the Job Return System for rehiring employees who had to leave work toattend to family matters. This system aims to rehire employees and redeploy the skills and abilities that they developed
while working at the Company, enabling them to once again play an active role.

Support for Working Women
We believe that diverse sensitivities, approaches, and abilities are needed in order to generate new business amid thematured economies of the industrialized nations. Consequently, we have more than doubled the percentage of female
employees in sales and technical positions over the past ﬁve years.
On April 1, 2016, USHIO adopted a personnel system that does not take gender into account while eliminating thedistinction between main career track positions and general staﬀ positions. USHIO promotes personnel into
management career track positions without regard to gender, and aims to triple the number of women in management
positions by 2020.
At USHIO, the average length of service for its employees has increased every year, reaching an average of 18 years
in ﬁscal 2016, with female employees working more years on average than their male counterparts.

Third-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

CSR Action Plan

FeatureUSHIO aims to be able to ﬂexibly accommodate diverse values and work styles regardless of employees' lifestyles andgender. As part of this, we have a support system for childcare leave that oﬀers much more than the legally required
level of support.
As an additional support for employees balancing parenting with work, we uploaded the Work-Life Balance Handbook
on our intranet portal for employees. The handbook contains information on programs for balancing work, as well as
information on childrearing and maternal welfare, how managers should respond, and other tips for employees who
would use the programs and for their managers.
We have also enhanced the work environment to enable people to balance work and parenting while encouraging themto review their way of working in order to achieve a good work-life balance. For example, we conducted “no overtime”
days and put up posters to promote them, and organized visiting days for children and family day events. The ratio of
women returning to work after taking maternity leave is virtually 100%, and several male employees also take childcare
leave each year.
Consequently, for the fourth time we earned the Kurumin certiﬁcation as a company that supports the raising ofchildren under the Act for Measures to Support the Development of the Next Generation.
People Taking Childcare Leave
Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016

Men

5

4

3

5

Women

32

29

25

22

Total persons

37

33

28

27

USHIO's Work-Life Balance Support System

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USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

CSR Action Plan

FeatureThird-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

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

Communication

Communication with Lunch

Quality Assurance Divisions

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

Number of participants

President

10

47

General managers, etc.

31

147

Total

41

194

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

UPS (USHIO Production System)
UPS (USHIO Production System) is an initiative aiming to establish a unique new production system that started at
USHIO's Harima Division in ﬁscal 2012. Amid a rapidly changing business environment, it is important to be able toeﬃciently supply high-quality products in any environment. To achieve this, we saw the need to think outside 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.

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

Activities Until Now
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, themovement consisted of three pillar groups, the Manufacturing Technology Group, Quality Assurance System Reform
Group and Education and Enlightenment Group.
USHIO has been conducting small-group activities at our business sites since April 2014 to engage all employees at
each business site in activities to improve quality assurance and visualization. This initiative began with 91 groups
which implemented speciﬁc measures to improve quality, trained personnel able to autonomously manage quality, andhelped raise awareness of quality at sites.
In ﬁscal 2016, we created new supporter positions within departments to provide assistance to the 90 small groups,
with women and young employees taking the lead. These supporters provide follow-up assistance instead of
secretariats. For the organization, this became an opportunity to switch to our current system, integrating eﬀorts toimprove quality with actual work processes, thereby creating a structure for the homogenization of mindsets andsupport for independent action on quality assurance.
In ﬁscal 2017, 88 small groups will continue to work with supporters with the aim of reducing the ratio of follow-up
assistance from the quality promotion secretariat to zero, thereby entrenching initiatives to further improve quality.

19

USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

Improving and Embedding Value in Human Resource Development

CSR Action Plan

FeatureThird-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

BCP Initiatives

We believe that “in order to produce good products, it is ﬁrst necessary to produce good workers.” We are training
supporters to encourage autonomous activities at business sites. From ﬁscal 2017, we aim to improve and embed thevalue of human resource development by enhancing our training curriculum into one that oﬀers more practicallessons and techniques.

USHIO commands extraordinarily large market shares for many of its light source products used in various industries.
Recognizing our important responsibility to ensure stable supplies of these products, we have been actively promoting
business continuity plans (BCPs).

From now on, too, 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 enhancethe eﬃciency and vitality of our workplaces.

In April 2012, USHIO established the BCP Committee as an entity for the entire Company and formulated a business
continuity plan for its key bases in the light source business, while starting to build a framework for mitigating damage
and quickly recovering from a natural disaster and collaborating with other bases.

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

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

Creation of Business Models with IT
In ﬁscal 2017, USHIO reorganized its IT division. In the ﬁelds of the administration of internal IT systems, security andeducation, USHIO has reorganized and further strengthened its organization, including by updating platforms that
contribute to business, adding roles for adapting to new business models and promoting innovation through internalbusiness process reforms.

As new added value for existing business models, USHIO has become aware of automation with IT solutions, andstarted to examine the creation of solutions to enhance productivity and quality for the IoT business and for its
customers that possess manufacturing sites.

In April 2014, we created the USHIO BCP, an integrated business continuity plan for the entire Company that covers
all of its bases. This BCP deﬁnes the organizational entities that oversee labor, capital procurement and public
relations, and calls for periodic drills and training for these entities in a constant review of the structure and its
responsiveness. Through training sessions, we spread awareness of our BCP activities to other layers of theorganization. Looking ahead, we will address issues related to our response to additional risks, such as damage fromnatural disasters and incidents caused by people, as well as the proliferation of BCPs throughout the Group.

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

CSR Procurement Policy

Promoting CSR Procurement with Our Suppliers
The USHIO Group's Green Procurement Standards encourage its suppliers to improve their environmental
responsiveness by requiring them to establish environmental management systems based on ISO 14001 or Eco Action
21.
USHIO periodically conducts CSR response status surveys (questionnaires, etc.) of its suppliers. We ask our suppliersto evaluate their own environmental management systems and CSR response status, and use the results of thesesurveys to promote better CSR responsiveness at our suppliers.

20

USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

CSR Action Plan

FeatureThird-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

Environment
We at the USHIO Group recognize symbiosis with the global environment to be one of today's most important challenges
for enterprises. We pledge to contribute to the creation of a sustainable society by incorporating measures forenvironmental protection into every aspect of our business activities.

Advancing CSR Procurement
While aiming to improve the CSR responsiveness of its suppliers, the USHIO Group gives preference in its transactions to suppliers
that have demonstrated excellent CSR responsiveness. As a result, CSR procurement is advanced throughout our supply chains.
In its environmental activities, the USHIO Group has been strengthening the environmental responsiveness of Group
companies, centered on USHIO. The USHIO Group Procurement Conference is periodically held with procurement
managers from each base in attendance. During the conference, we reiterate procurement policies to promote speciﬁccourses of action in management. This conference also allows us to address customer requests on a worldwide basis.

2020 Environmental Vision
The USHIO Group formulated its 2020 Environmental Vision with the goal of becoming a company able to contribute
through its business activities to the realization of a low-carbon, recycling-oriented, biodiversity-preserving society by
the year 2020. USHIO has been promoting Phase Five of its Environmental Action Plan since ﬁscal 2017.

Overseas Procurement
As companies continue to globalize, the social responsibility required of them has increased, and the scope of that
responsibility has widened. Issues with human rights relating to overseas labor conditions, water and environmental
pollution due to resource development, or issues relating to mined resources in war-torn areas are among the
responsibilities̶and risks̶that we bear both directly and indirectly through our supply chain.

Group Development
Group company supply chains extend throughout Japan and the world. The Group Coordination Council sets CSR
procurement policies and ascertains conditions, and the USHIO Group Procurement Conference debates speciﬁc
initiatives for CSR procurement.

Checking for Conﬂict Minerals
The USHIO Group uses tungsten, tantalum and other minerals to make the electrodes and ﬁlaments in its lamps. To dothis, and based on our Basic Policy Statement for Conﬂict Minerals, Group companies and our suppliers are prohibitedfrom using conﬂict minerals. USHIO checks for the use of any conﬂict minerals and reports the results of its ﬁndings
to customers using the EICC/GeSI Conﬂict Minerals Reporting ledger sheet.
(Conﬂict Minerals)

In accordance with the clause on conﬂict minerals in the US Securities and Exchange Commission's Dodd-Frank WallStreet Reform and Consumer Protection Act, companies listed on US stock exchanges are legally obligated to discloseand report on their use of conﬂict minerals in their products. Conﬂict minerals include tantalum, tin, gold, andtungsten, produced in the Democratic Republic of the Congo or adjacent countries.

Basic Policy Statement on Conﬂict Minerals
We shall not use conﬂict minerals (tantalum, tin, gold, and tungsten) produced and sold by armed forcesin the Democratic Republic of the Congo or adjacent countries.
We shall convey USHIO's policies on conﬂict minerals to our suppliers, and conduct necessary surveys.
We shall stop purchasing materials if it becomes evident they are made with conﬂict minerals.
Kenji Hamashima

President and Chief Executive Oﬃcer USHIO INC.
October 1, 2014

Review of Phase Four of the Environmental Action Plan
Under Phase Four of the Environmental Action Plan (ﬁscal 2014 to ﬁscal 2016), USHIO had worked toward achieving
its objectives to expand sales of environmentally conscious products, implement global warming countermeasures,
manage chemical substances, conserve natural resources, and preserve biodiversity.
As a result, USHIO achieved its targets for reducing the volume of CO2 emissions at its business sites and in
distribution, improving the reliability and eﬃciency of CMS, and reducing waste volume. However, we have some issues
left to address, and need to revise our standards for creating Super Green Products and expanding sales ofenvironmentally conscious products.

21

USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

Results of Phase Four of the Environmental Action Plan
Environmental themes

Design ofenvironmentallyconscious
products

Expand sales ofenvironmentallyconscious
products

Global warming
countermeasures

Phase Four target

Phase Four results

Creation of Super
Green Products

Creation of Super Green
Products: Accumulated
total of 20

Creation of Super Green
Products: Accumulated total of 3

Sales ratio ofenvironmentallyconscious products

Increase sales ratio ofenvironmentally conscious
products by 50%

Increased sales ratio ofenvironmentally conscious
products by 25%

Reduce CO2
emissions atbusiness sites

Reduce CO2 emissions by
3% from ﬁscal 2013
levels on a sales unit basis

Reduced CO2 emissions by 6%from ﬁscal 2013 levels on a sales
unit basis*

Improve reliability
and eﬃciency of
CMS

Promoteenvironmentallyconscious
operations(enhance
environmental
productivity)

Reduce CO2 emissions
per unit of shipments(down 1% year on year)

Improve and integrate
CMS framework for more
eﬃcient and reliable
management

Management ofchemical
substances

Enhance customer
responsiveness

Biodiversity
preservation

Future Issues in Light of Outcomes of Phase Four of the Environmental Action Plan

Initiatives

Reduce CO2
emissions in
distribution

Put in place a structurethat facilitates a precise
and rapid response tocustomer demands

Evaluation

Harima Division: Down 17%
compared with ﬁscal 2014○

Gotemba Division: Up 7%
compared with ﬁscal 2014○

USHIO improved the framework
to apply to equipment products,
new products and procuringparts and materials overseas,
extending it to each bases.
Gotemba began to eﬀectively
manage CMS, and someoverseas bases began toindependently conduct surveys
and answer customer questions.

○

USHIO has introduced a systemable to respond to customer
requests about environmental
surveys, and improved eﬃciency
by using the web to share
information between businesssites and answer questions fromsuppliers.
USHIO reduced parts that
contain prohibited substancesfrom the design stage byexerting control through asystem that determines legal
regulations.
USHIO automated the
management of acquired
environmental data and reduced
parts that do not haveenvironmental data.

○

IssuesExpand sales ofenvironmentally conscious
products

Review and manage framework for certiﬁcation system
Examine speciﬁc measures for improving corporate image
Stay ahead of environmental regulations and other trends, focus on development
and sales promotions to create new products, applications and markets
Assess related Group companies (create guidelines and frameworks)

Global warming
countermeasures

Broad disparities at each business site in activities to reduce the volume of CO2
emissions. Need to more tightly manage activities to reduce the volume of CO2
emissions at major sites.
Worked to increase transportation eﬃciency in distribution, but looking ahead, we
will continue examining the selection of transportation vehicles for larger products.

Management of chemical
substances

Resource conservation

1. Improve customer responsiveness in green procurement and deploy acrossthe Group
A structure was put in place for equipment products and new products, but looking
ahead, we will continue to unify information across business sites and promote theautomation of survey work.
Eﬀectiveness diﬀers according to the site. We will improve weak sites.

Biodiversity preservation

Need to try and increase the eﬀective resource usage ratio, which has been on the decline.
Distribute industry guidelines and other information
Need to spread awareness of principles

Phase Five of the Environmental Action Plan

Resource
conservation

Reduce waste by 3%
from ﬁscal 2013 levels ona sales unit basis

Reduced waste by 20% fromﬁscal 2013 levels on a sales unit
basis

○

Biodiversity
preservation

Discloseenvironmental
information

Preserve biodiversity
around business sites

Monitored trends (prepared to
deploy industry guidelines)△△ = Partially achievedt

Environmental themes

2. Promoting CSR procurement
Created the CSR Procurement Policy and commenced activities, but activities have only
spread to some sites. We will proceed with their deployment to other business sites.
Not enough speciﬁcs for each CSR procurement activity item. Because internal andexternal disclosure can be improved, we will pass on the relevant information.

Resource
conservation〇 = Achieved

Third-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

CSR Action Plan

Featurex = Not achieved* From ﬁscal 2016, there was an increase on a unit basis as a result of an increase in the number of sites subject to datacollection alongside an increase in Group companies. Based on levels prior to the increase in sites, USHIO achieved its targets.

In April 2016, USHIO launched Phase Five of the Environmental Action Plan, which had been formulated based on an
analysis of the results of and data obtained from Phase Four of the Environmental Action Plan, and it also reﬂects theconcerns of stakeholders and discussions with Group companies. In drawing up this plan, USHIO placed an emphasis
on proactively addressing environmental regulations for products, developing products from the perspective of social
contributions in addition to the environment, managing chemical substances at business sites, reducing the volume ofwater resources used, and promoting environmental conservation based on environmental risk factors. Among futureissues, USHIO will address such issues as how to eﬀectively raise Group-wide environmental performance and how toadvance compliance with the 2015 version of the ISO 14001 Environmental Management System.

Phase Five of the Environmental Action Plan was designed to bring USHIO closer to achieving its vision for 2020. The
following initiatives are speciﬁc measures under the plan.

22

USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

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

CSR Action Plan

FeatureThird-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

Develop Products That Contribute to the Environment and Society

Development of Super Green Products

In line with its eﬀorts to create environmentally conscious products and based on its own certiﬁcation standards,
USHIO designates products that proactively use environmental technologies as Super Green Products. Super Green
Products are ﬂagship products that demonstrate excellent environmental qualities, such as energy eﬃciency,
extended lifetimes, 3R design, materials used, and applications. USHIO has certiﬁed 19 Super Green Products thathave cleared numerical benchmarks based on the USHIO environmental factor.
In ﬁscal 2013, USHIO proactively improved the environmental performance of product lines that take advantage of its
unique strengths in light, certifying products such as special lamps and LED light sources for medical equipment, andhigh-value-added industrial process equipment that conserves energy. Certiﬁcations of products made by Group
companies steadily increased since the ﬁscal 2012.
Three products were newly certiﬁed in ﬁscal 2014 as a result of USHIO enhancing the environmental performance of
product lines that take advantage of its unique strengths in light sources, including LED light sources and other highvalue-added industrial process equipment that conserve energy. Looking ahead, USHIO expects to proactively develop
certiﬁcation initiatives, including reviews of certiﬁcation standards.

Correction
There was an error in the number of certiﬁed Super Green Products that we reported for ﬁscal 2015. The correct
number was an accumulated total of three certiﬁcations for the three-year period of Phase Four of theEnvironmental Action Plan (ﬁscal 2014‒ﬁscal 2016). We apologize for this mistake.

Reduce Volume of CO2 Emissions in Business Activities

Initiatives at Main Business Sites
ISO 14001 Environmental Management System

Transition to the 2015 Version of ISO 14001 Environmental Management System
Viewing the 2015 revision of ISO standards as an opportunity, our work group for the ISO committee began advancing
initiatives in ﬁscal 2017 to comply with and transition to the new standards while slimming down and speeding up
internal compliance. Our key focus is tying ISO into core business functions while emphasizing eﬀectiveness by
reinforcing the management system and legal compliance.

Harima Division
The Harima Division accounts for about 27% of the USHIO Group's total CO2 emissions. The Harima Division reduced
its electric power consumption by 1.92 MWh (86.4 t-CO2 equivalent) in ﬁscal 2016 as a result of autonomous eﬀorts
to evaluate and reduce standby power consumption in all buildings and life tests of lamps, as well as activities toconserve energy in clean rooms.
Every summer and winter, USHIO cooperates with energy conservation initiatives in the Kansai region by reducing
electricity usage during peak demand periods based on demand projections for production facilities and the powerusage of life tests of lamps.
USHIO has also made considerable improvements over the past few years on a per-unit basis. Since measures toconserve energy have become more complex, looking ahead, USHIO aims to further advance measures to conserve
energy from a medium- to long-term perspective while reducing costs by proactively incorporating external
information on energy conservation.

23

USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

Gotemba Division
The CO2 emissions of the Gotemba Division account for around 8% of the
USHIO Group's total. Since most of the products manufactured at theGotemba Division are assembly-type products, the power used for air
conditioning accounts for a relatively high proportion of the division's overall
power consumption. The division has worked to reduce the energy used byinstalling solar power generation equipment and promoting improved
operation of air conditioners, upgrading and refurbishing them to powersaving models, and installing LED lighting and human-sensor lighting switches.
Moreover, the division has carried out emergency electricity-saving measures
as requested by the Japanese government, along with electricity-saving measures for the summer season. The division
implemented electricity-saving eﬀorts by using an electricity monitoring system and by reviewing ﬂoor layouts,
resulting in sustained energy conservation activities. In recent years, the optimal amount of watering for the roof andair-conditioning outdoor unit is being automated by taking advantage of sensors, and further reductions of the airconditioning load are being promoted. As a result, the eﬀect on the volume of CO 2 emissions is projected to be a
reduction of 12.8 kl per year.

CSR Procurement

Overseas Procurement and Group-Wide Implementation
USHIO also procures items from overseas suppliers, and from ﬁscal 2016, started a survey of overseas suppliers close
to the level of the survey conducted on domestic suppliers, targeting high-volume transactions and items that areoften used in general merchandise. Since the situation diﬀers in each region and country, we seek to create a roadmap through discussion, and continue to conduct surveys.
In particular, USHIO has been emphasizing dialogue with its suppliers and focusing eﬀorts on holding explanatory
brieﬁngs and disclosing information on its website. USHIO holds explanatory brieﬁngs for its suppliers in a timely
fashion, following revisions to laws, regulations and standards, and other factors.
On revising the USHIO green procurement standards, we reviewed all the standards in line with amendments to laws
and regulations, added chemical substances for our suppliers to check, and explained the revisions. With regard to
CSR procurement, we promoted CSR procurement throughout the supply chain after explaining the USHIO CSR
Procurement Policy and conducting the CSR Procurement Survey.
We create opportunities for our suppliers to learn more about the meaning behind CSR procurement at USHIO andthe beneﬁts of working together through questionnaires and explanatory brieﬁngs about our procurement activities.
Moreover, USHIO raises awareness of its vision for CSR with suppliers by explaining its evaluation system based onhuman rights and labor, occupational health and safety, the environment, fair and ethical trade, quality and safety,
information security, social contributions and business continuity planning (BCP).

When necessary, USHIO interviews and audits suppliers that have room for improvement in their CSR initiatives, andprovides guidance for areas in need of improvement. We aim to improve CSR by helping our suppliers in these ways.
In order to more eﬀectively and eﬃciently advance these activities, USHIO evaluates its suppliers, sets priorities, andcarries out CSR activities in its daily operations.

Third-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

CSR Action Plan

FeatureManagement of Chemical Substances, Resource Recycling, and Preservation of Biodiversity

Reducing Harmful Chemical Substances

In ﬁscal 2011, our eﬀorts to reduce harmful chemical substances included gathering information about their status ateach business site and selection of the chemical substances to be reduced. As a result, we decided to reduce our useof volatile organic chemicals (VOCs) in line with the recommendation of four electrical machinery and electronics
associations in Japan. Since ﬁscal 2012, we have been reducing the consumption of VOCs by means of reviewing our
production facilities.

Initiatives at the Harima Division
At the Harima Division, USHIO has been reducing the amount of chloroform used in the lamp manufacturing process
because of concerns that the chloroform produced is an air pollutant. We plan to methodically reduce by half theamount of chloroform used, which has been roughly approximately 10 t annually, by ﬁscal 2017. More speciﬁcally,
USHIO had deployed sealed automated equipment, and has methodically applied measures to reduce the size of
openings when equipment is used on each of its production lines. Chloroform usage has been trending as shown
below. In addition to helping conserve the environment, the installation of the new equipment has also proved to be aneﬀective method in terms of safety by eliminating any contact of chloroform with workers' skin by avoiding the risk ofan exposure aperture.
In September 2016, USHIO installed its second unit, following the installation of the ﬁrst one in 2015. The amount thatchloroform usage is reduced depends on the volume of lamps that we produce. Like the ﬁrst unit, USHIO expects thesecond unit to reduce chloroform usage further by reliably lowering the evaporation amount through sealing the unit,
automation, and shrinking the size of apertures.
Amounts of chloroform usage
Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 20168.15 t8.70 t7.00 t6.80 tIn addition, USHIO makes a concerted eﬀort to act appropriately, including by using alternatives to other chemical
substances.

Business Site Chemical Substance Registration System
As a new initiative beginning in ﬁscal 2017, USHIO launched a system that requires business sites to submit anapplication to use a new chemical substance if they need to use the substance. The chemical substance is evaluatedprior to its use, and only approved chemical substances can be used in products. This system is also used as a tool in
pollution risk assessments and occupational safety evaluations.

24

USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

Third-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

CSR Action Plan

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

The USHIO Foundation
The USHIO Foundation was established in 1994 to commemorate the 30th anniversary of the founding of USHIO. As
globalization progresses, the foundation will contribute to society by assisting the development of the next generationof human resources, including overseas students, who will be responsible for leading the world in the future, andpromote further interaction and mutual understanding between Japan and other countries.
In ﬁscal 2016, the foundation provided scholarships to 43 graduate students (including overseas students) and 12
students in specialized courses at colleges of technology. So far, 518 scholarship students have been supported, andwe continued to focus on calling for scholarship applicants from schools in areas aﬀected by the Kumamoto
Earthquakes.

Establishment of a Scholarship Fund at Suzhou University in China
USHIO (SUZHOU) CO., LTD. signed an agreement in January 2009 with China's Suzhou University to establish theSuzhou University USHIO Scholarship Fund. Every year, a number of students are awarded scholarships. Over theseven-year period up to 2015, a total of 205 male and female students have beneﬁted from the Suzhou University
USHIO Scholarship Fund.

Accumulated Number of Students Awarded Scholarships
Fiscal year

Number of men

Number of women

Subtotal

Fiscal 2010

15

20

35

Fiscal 2011

12

23

35

Fiscal 2012

12

23

35

Fiscal 2013

11

24

35

Fiscal 2014

5

15

20

Fiscal 2015

8

12

20

Fiscal 2016

7

18

25

Total

70

135

205

Successful scholarship recipients at a certiﬁcate bestowal ceremony

At the ﬁscal 2014 commendation conference

25

USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

CSR Action Plan

FeatureThird-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

Contributions to the Local Communities of USHIO (UI)

Contributions to the Local Communities of USHIO LIGHTING (ULI)

Holding USHIO DAY 2016 in Himeji, the City in which USHIO Was Born

Supporting the “Pink Ribbon Illumination” through Dynamic Lighting at the
JR Himeji Station Building

On March 26, 2016, USHIO DAY 2016 was held at the Earth Cinemas Himeji, acinema complex equipped with the latest USHIO Premium Theater System. This
event was held to convey our gratitude to local residents, particularly as USHIO
had commemorated its 50th anniversary in 2014. The event was designed toshowcase the wonder of movies to a large number of local guests.

Making ecobags

On the day of the event, local children and their guardians were invited to attend
for free. Several children excitedly said that it was their ﬁrst movie at a movie
theater and enjoyed the impressive sounds and visuals. During the event, in
addition to oﬀering tickets for special movies at a discount, we held sessions formaking traﬃc-safety keyholders shaped like a projection lamp and ecobags. We
also showcased the MicroTiles Wall Display System manufactured by CHRISTIEDIGITAL SYSTEMS.

The Pink Ribbon Movement* has gained recognition around the world as an educational campaign. As a part of thismovement, the Pink Ribbon Illumination event was held in Himeji on Oct. 1 to 3 in 2016. USHIO LIGHTING, INC. (ULI)
supported part of this event as lighting provider. ULI graphically illuminated the JR “piole HIMEJI” Building at Himeji
Station on Oct. 3.
Piole HIMEJI's wall has approximately 1,560 full-color LED light bars and 45 LED ﬂoodlights. Normally, the wall is ﬁlledwith multi-colored illuminations of dancing white-necked herons (symbols of Himeji) or rippling water, which lights up
the street brilliantly. The event held on Oct. 3 was a special program depicting pink ribbons. This pink illumination
serves to raise everyone's awareness of breast cancer and aims to increase the rate of breast cancer screening.
* This movement aims to spread correct information about breast cancer and encourage women to have breast cancer
screening at an early stage. The ribbon movement diﬀers by country in terms of what each color theme means, but
the pink ribbon has become universally known to represent breast cancer awareness.

Holding Workshops at Tsukuba Science Edge 2016
On March 26, 2016, USHIO exhibited at Tsukuba Science Edge, an annual event held for junior high school and highschool students studying sciences. This was the third year that we participated.
This year, our New Technology Development Department ran a workshop on “welding with light.” The event this time
had a fair number of female student participants, and many students proactively participated in a quiz-format Q&A
session.
We surveyed the students (the second time so far) who participated, and more students than on the previous occasion
said that the workshop increased their interest in or understanding of science. We believe it provided a valuable
learning experience that opened students' eyes to the potential of light.
In the future, we will continue to talk about the fascinating aspects of light, the core of USHIO's business, while
stimulating the intellectual curiosity and spirit of inquiry of as many students as possible.

Participation as Volunteers and Runners in the World Heritage Himeji Castle Marathon 2016
On February 28, 2016, USHIO employees once again participated as runners and volunteers in the World Heritage
Himeji Castle Marathon 2016, which is held in Himeji. A total of 10 employees participated as volunteers, helping tokeep spectators from entering the course and preventing people from throwing objects.

Contributions to the Local Communities of USHIO KOREA (UKI)

Paying Respects to Local Elderly People
In ﬁscal 2016, USHIO KOREA decided to hold a CSR Day (volunteer day) on September 11. Volunteers delivered rice,
fruit, canned goods and other daily necessities to local elderly people living around the facility.
Among the elderly we visited, some were unable to walk freely or go shopping, so we hope our help had a positive
impact on their lives.
Looking ahead, we will continue to give back to local communities with the aim of contributing even a little to thedevelopment of society.

Oﬀering Work Experience Targeting Junior High School Students
As a part of its contributions to local communities, on November 20, 2015, UKI once again oﬀered junior high school
students an opportunity to experience working at a company.
The participating students learnt about actual work situations, including by watching a video introducing the Company,

exchanging business cards with the president, participating in a video conference, and sending emails. Although shy atﬁrst, the students were eager to take advantage of this experience, describing in the end how they felt glad to have
had a fruitful day in which they engaged in actual work while learning more about UKI.
Moreover, this work experience program also served as an opportunity for us employees to reaﬃrm the new valuethat we create through our work. We hope that this experience will give the students a better understanding of theimportance of work.

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USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

FeatureCSR Action Plan

Third-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

Contributions to the Local Communities of USHIO PHILIPPINES (UPI)

Contributions to the Local Communities of USHIO AMERICA (UAI)

Donation of School Uniforms to Elementary School Children

Donation of Toys to the “Spark of Love Toy Drive”

On June 26, 2015, USHIO PHILIPPINES collaborated with other companies in the industrial park to give donations toelementary schools nearby. These elementary schools have many children who come from economically disadvantaged
homes, so UPI gave them new school uniforms.

In the US, the holiday season starts around Thanksgiving in November and runs
through Christmas in December, with a variety of events held around town as
people go shopping for food and gifts. However, some families do not haveenough money to pay for holiday dinners and Christmas presents for theirchildren, so this period is also a time for charity work. Toy drives collectunwrapped toys, sporting goods and other presents, and are then delivered to
local children (who want them) for Christmas.

The children who received new school uniforms said “malaming salamat po” (thank you) with smiles on their faces.
Seeing children smile is wonderfully rewarding, no matter which country it is.

Contributions to the Local Communities of CHRISTIE DIGITAL SYSTEMS

Donation of Electronic Parts Waste Materials
CHRISTIE DIGITAL SYSTEMS salesforce member Christie Arizona donated electronic parts waste materials to a local
non-proﬁt organization called AZStRUT (Arizona Strut), a student group in Arizona that has formed partnerships withlocal schools and companies.
The donated electronic parts waste materials are repaired or remodeled by AZStRUT and given to high schools anduniversities in Arizona, thereby enabling students learning about computers to have the opportunity to work withactual electronic parts. Equipment that cannot be remodeled is recycled.

We contribute to society by recycling monitors, PCs and video processors that had originally been designated for
waste landﬁlls.

Participation in the United Way Campaign
Approximately 300 employees at Christie Canada, a business site of CHRISTIE DIGITAL SYSTEMS, participated in a
kick-oﬀ event for the United Way campaign. The theme of this year's campaign was “healthy people, strong
communities.” Aiming to support a variety of programs and services in local communities, United Way provides
assistance to local residents for improving their physical and mental health to support healthy family lifestyles.
Christie Canada helped to promote the annual United Way campaign through the kick-oﬀ event and by oﬀering
employees the opportunity to participate via a payroll deduction system. The campaign raised a total of 47,062
Canadian dollars (about ¥4.33 million) in donations.

Toys that were donated by UAI

UAI and the Irvine Plant called upon its employees to give donations for
Christmas presents. The boxes full of gifts were handed over to the “Spark ofLove Toy Drive,” a program that has been run for more than 20 years by the
local TV station and ﬁre department.
UAI plans to participate in toy drives every year as a part of its CSR activities.

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USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

Third-Party Opinion
Public Resources Foundation
Executive Director and Chief Secretary,
Sachiko Kishimoto
ProﬁleA graduate of the School of Education, University of Tokyo, Ms. Kishimoto
founded the forerunner to the foundation, NPO Public Resources Center, in
2000. She assumed her current position in 2013, following work at a privatesector think tank and studies in the US. Her present work involves, among otherareas, the development of socially minded capital ﬂow, including donations, NPOfunding and social investment, as well as CSR. In addition to membership in the
Cabinet Oﬃce of the Government of Japan's Joint Societal Development
Advisory Committee, she serves as director of several non-proﬁt organizations,
including the Japan Fundraising Association and the Japan Association of Charitable Organizations.

Like last year, I have read USHIO's Sustainability Report 2016 with the intention of oﬀering an opinion of the report.
The USHIO Group launched a new medium-term CSR plan in ﬁscal 2017 that seeks to “deepen” its stance by focusing
more on priority matters, as well as “broaden” its CSR activity framework to the Group as a whole, as a result of
discussing issues with stakeholders both inside and outside the Company. I believe the ﬁve key issues highlighted inthis report are appropriate CSR priorities for the USHIO Group. I also highly approve of the Company having clariﬁed
its commitment to setting KPIs and going through the PDCA cycle for each issue.
The USHIO Group has amended its 10 Action Guidelines to more closely follow international norms, such as the 10
Principles of the UN Global Compact, and declared their adoption internally and externally. I have high praise for the
new medium-term CSR plan, which clariﬁes initiatives in due diligence for human rights from both an internal humanresource management and external supply chain management perspective, in addition to conducting surveys about

conﬂict minerals and addressing CSR procurement. In the CSR procurement survey of 613 suppliers, however, theself-evaluation scores of each supplier have declined, underscoring a need for USHIO to more aggressively help its
suppliers improve in this regard. CSR procurement surveys are only conducted at major business sites and should be
expanded to more business sites. Conducting due diligence for human rights across a broad spectrum internally andexternally requires tight-knit collaboration between the CSR divisions and relevant departments inside the Company. I
expect USHIO to continue working to improve information sharing and collaboration among departments on mattersconcerning human rights violations.
USHIO made major changes to its personnel system in ﬁscal 2017 with the aim of maximizing the ambitions andmotivations of each and every employee. I approve of the Company's eﬀorts to foster diverse human resources
through individual talent management and the nurturing of personnel able to work in a global setting. USHIO has morethan doubled the percentage of female employees in sales and technical positions over the past ﬁve years, and theratio of women returning to work after taking maternity leave is virtually 100%. I believe this is a result of theCompany's eﬀorts to proactively support women in the workplace. In addition to childrearing, I hope that USHIO will
clarify policies for issues that arise in diﬀerent life stages, such as nursing care for elderly parents and health issues
among older employees, including menopause. I believe this would lead to improved productivity for employees. It isdisappointing that the ratio of employees with disabilities has fallen slightly below the legally mandated ratio, andexpect USHIO to put more eﬀort into remedying this.

FeatureCSR Action Plan

Third-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

I highly approve of Phase Five of the Environmental Action Plan, which was launched in May 2016, for emphasizing thedevelopment of products from an environmental and social contribution perspective, as well as its focus on reducing
CO2 emissions and strengthening management of chemical substances. This report provided some examples of theCompany's safe, secure and environmentally friendly solutions, including light sources for agriculture, sterilization ofballast water for ships, and solar simulators. I expect USHIO to promote these products and services while measuring
their impact on stakeholders in terms of providing value to society and the environment.

28

USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

FeatureCSR Action Plan

Third-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

Research and Development and Intellectual Property
Under our new medium-term CSR plan that started in ﬁscal 2017, the USHIO Group has launched the concept of further
developing Green Products based on the idea of providing safe, secure and environmentally friendly solutions through thedetailed development of strategically important items. USHIO continues to leverage its accumulated core technologies,
while pushing ahead with developing businesses that are kind to the environment and society.

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 and development forcommercialization of optical units, optical equipment and systemization.
We keep abreast of the latest developments in markets and technology andconduct strategic R&D activities. We have an organization that enables
interaction among the R&D teams from diﬀerent product groups to encourage
development of new kinds of light sources, related equipment and solutions.

High Dynamic Range Projectors
CHRISTIE DIGITAL SYSTEMS CANADA INC. has developed the world's ﬁrst
digital light processing (DLP) projector to achieve a stunning contrast ratio of
1,000,000:1. That is a huge advancement over the 2,500:1 contrast ratio forthe latest conventional digital cinema projector models. DLP projectors made it
possible to multiply the normally attainable contrast ratios of about several
thousand to one due to the optical characteristics of imaging devices by putting
one more imaging device into the optical system to be used as a backup formodulation.

Intellectual Property
The USHIO Group's policy on intellectual property is as follows:
1. Contribution to earnings
Give strategic advice and proposals autonomously to contribute to
the Company's earnings.

Results for the Fiscal Year Ended March 31, 2016
Red Laser Diode
USHIO OPTO SEMICONDUCTORS, INC. has developed a red laser diode for use
in the industrial measurement ﬁeld and head-mounted displays in automobiles
where future growth is anticipated. This product is world-class among single
transverse mode laser diodes in this wavelength range. Further, USHIO OPTOSEMICONDUCTORS is working to develop a red laser diode with a high power
output, a product promising future growth, for use as a solid state light source incinema and industrial projectors.

Direct Imaging Exposure System for Solder Resist
ADTEC Engineering Co., Ltd. has fully leveraged its technology in direct imaging
exposure systems for patterning to develop a direct imaging exposure system
for solder resist. The system uses semiconductor laser diodes of two
wavelengths (375 nm and 405 nm) for a light source, enabling the wavelength
ratio to be changed. This allows for the light source to be matched to the best
spectral sensitivity for resist, giving each user the ability to optimally adjust
solder resist qualities (resolution, cross-section shape, rigidity, etc.) to diﬀering
processes.

2. Acquire eﬀective patent rights
Conduct patent right acquisition activities with an eye to utilizing,acquiring and maintaining intellectual property that can contribute toactivities in M&As, new businesses, and existing businesses for theentire Group.
3. Rigorous intellectual property compliance
Conduct surveys and analysis of other companies' intellectual
property to visualize intellectual property risk and ensure rigorous
intellectual property compliance.

29

USHIO INC. SUSTAINABILITY REPORT 2016

President’s Message

CSR Management

FeatureThird-Party Opinion/
Research and Development andIntellectual Property/Corporate Data

CSR Action Plan

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

Established

Parent Company

Paid-in Capital

March 1964

¥19,556,326,316

Directors (As of June 29, 2016)

Chairman and USHIOGroup Representative

Jiro Ushio

President and Chief
Executive Oﬃcer

Kenji Hamashima

Director

Shiro Ushio

Director

Hiroaki Banno

Outside Director

Tadashi Nakamae

Outside Director

Yoshinari Hara

Outside Director

Yasufumi Kanemaru

Outside Director

Shuichi Hattori

Outside Director

Sakie T. Fukushima

Group Companies (57 companies) (as of March 31, 2016)

Director(Audit & Supervisory
Committee Member (Fulltime))

Nobuyuki Kobayashi

Outside Director(Audit & Supervisory
Committee Member)

Masanori Yoneda

Outside Director(Audit & Supervisory
Committee Member)

Nobuyoshi Yamaguchi

Head Oﬃce

Chiyoda, Tokyo

USHIO LIGHTING, INC.

Harima Division

Himeji, Hyogo Prefecture

XEBEX INC.

Gotemba Division

Gotemba, Shizuoka Prefecture

ADTEC Engineering Co., Ltd.

Yokohama Division

Yokohama, Kanagawa Prefecture

PROTOSERA INC.

Osaka Branch

Osaka, Osaka Prefecture

USHIO OPTO SEMICONDUCTORS, INC.
6 other companies

Overseas Subsidiaries (46 companies)

North America

EuropeAsia

USHIO AMERICA, INC.

USHIO EUROPE B.V.

USHIO HONG KONG LTD.

CHRISTIE DIGITAL SYSTEMS
USA, INC.

USHIO FRANCE S.A.R.L.

USHIO TAIWAN, INC.

USHIO DEUTSCHLAND GmbHUSHIO PHILIPPINES, INC.

USHIO U.K., LTD.

USHIO (SUZHOU) CO., LTD.

BLV Licht-und Vakuumtechnik
GmbH

USHIO ASIA PACIFIC PTE. LTD.

CHRISTIE DIGITAL SYSTEMSCANADA INC.
CHRISTIE MEDICAL HOLDINGS,
INC.
NECSEL INTELLECTUAL
PROPERTY, INC.

Employees (as of March 31, 2016)
Parent company

1,744Japanese subsidiaries

852

Overseas Subsidiaries

3,290

Total

5,886

Japanese Subsidiaries (11 companies)

NATRIUM Sp. zo.o.

USHIO KOREA, INC.
USHIO SHANGHAI, INC.
USHIO SHENZHEN, INC.
27 other companies

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/en