CSR Report 2019
Organizational
Governance

Human
RightsPlatinum

From catalysts to anticancer
agents, a promising star withmuch hidden potential.

Gold

In addition to being used forjewelry, this multitalented
element is used for ultraﬁne wires
in mobiles and smartphones,
playing a hugely important role
when conducting electricity.

SilverWithout silver, photographs
would not have been invented.
Found all around, including yourmirrors.

Palladium

Able to absorb large amounts ofhydrogen, so perfect for use withhigh purity hydrogen generators.
Labor Practices

Consumer Issues

Rhodium

When solidiﬁed, cannot be
melted by anything. Very hardelement used for plating tocreate hard surfaces.

Iridium

Used for vehicle spark plugs
because of excellent hardness
and corrosion resistance, and forthe crucibles used to manufacture
sapphire substrates for LEDs
because of high heat resistance.

Ruthenium

Used as an optical catalyst to
reduce water to hydrogen.
Enables increased storage
capacity for hard disks.

The
Environment

OsmiumUseful in biotechnology andforensic sciences.

Community
Involvement

Core subjects of ISO 26000
Human
RightsOrganizational
Governance
Organizational
Governance

The
Environment

Consumer Issues

Fair Operating
Practices

Community
Involvement

The Environment

Consumer Issues

Fair Operating
Practices

Community
Involvement andDevelopment

Labor Practices
Human Rights

Labor Practices

A universal design font is adopted
to make the characters easy to read.

Fair Operating
PracticesFinancial Condition of the Tanaka Kikinzoku Group

Corporate Philosophy■Financial results overview

The TANAKA group:

FY2017A leading company in the ﬁeld of precious metals,
With superior creativity and technical excellence,
We build customer trust through rapid responses that exceed expectations,Contribute to the creation of a prosperous society,of precious metals.

FY2018changeNet sales（100 million yen）
12,000Net sales

976,613925,259

94.7％

10,000Net income

13,391

11,851

88.5％

8,000

Total assets

566,196554,959

98.0％

6,000

37.0％

40.8％

ー

2,000

Capital adequacy
ratio

As well as to the future of the planet through sustainable use

million yen Year-on-year

0（100 million yen）

1. Greet Everyone

TANAKA is accredited as a Good Delivery Referee for gold

2. Show your Smileand also appointed as a Good Delivery Referee by London

and silver by The London Bullion Market Association (LBMA),

3. Give thanks
4. Maintain Safety
5. Challenge Yourself

134

140
120

119

5,000

is one of the only ﬁve Good Delivery Referees in the world

60(and the only one in Japan), which are responsible for40

assessing Precious metals melting technologies and

20

1,000

0

0

2014

2015

●

Headquarters (Tokyo)●

Tanaka Denshi Kogyo K.K.（TD）

Nippon PGM Co., Ltd.（PGM）

●
●

●

●

●

●

●

●

●

5,662

5,550

Businesses of TANAKA and04 Values Provided by It

4,222

2,000

2017

2018

FY

For the Sustainable Future
2014

2015

2016

2017

2018

FY

●

●

Tokyo Oﬃce

Continuous Developmentof Trust●

08 Quality of TANAKA●

Protection of

10 the Global Environment

●

●

●

Shonan Satellite Plant●

Headquarters (Tokyo)●

Kosaka Plant

Contribution to Local

14 Communities and Society

Overseas bases
Tanaka Kikinzoku Kogyo K.K.（TKK）
●
●
●
●
●

16 Active Role of Each Employee

Taiwan Tanaka Kikinzoku Kogyo Co., Ltd. Taipei Sales Oﬃce Kaohsiung Sales Oﬃce Tanaka Kikinzoku (Ningbo) Co., Ltd.
Tanaka Kikinzoku (Chengdu) Co., Ltd. Seoul Branch Hong Kong Branch Tanaka Kikinzoku International (Shanghai) Co., Ltd
Tanaka Kikinzoku International (Shanghai) Shenzhen Branch Tanaka Kikinzoku International (Singapore) Pte., Ltd.
Tanaka Kikinzoku International (Singapore) Pte., Ltd. Manila Branch Tanaka Kikinzoku International (Thailand) Co., Ltd.
Tanaka Kikinzoku International (America) Inc. Tanaka Kikinzoku International (America) Inc. San Jose Branch Tanaka Kikinzoku International (Europe) GmbH
●

●

●

●

●

●

●

●

●

Creation of a Safer Work

18 Environment●

Tanaka Denshi Kogyo K.K.（TD）●●

Tanaka Electronics Singapore Pte. Ltd. (TES) Tanaka Electronics Malaysia Sdn. Bhd. (TEM) Tanaka Electronics (Hangzhou) Co., Ltd. (TEC)
Tanaka Electronics Taiwan Co., Ltd. (TET) Tanaka Electronics Taiwan Co., Ltd. Technical Center (TET/TC)●●●

Electroplating Engineers of Japan, Limited（EEJA）●

To Be an Honest and

20 Healthy Company

Chengdu Guangming Paite Precious Metal Co., Ltd.（GMPT）

EEJA (Shanghai) Co., Ltd.

Metalor Technologies International SA

CSR Management

22 CSR Performance

LT Metal Co., Ltd.（LT Metal）
Nippon PGM Co., Ltd.（PGM）●

Exploration of

06 Various Possibilities

●

●

●

02 Message from the President
Strength of TANAKA

●

●

●

●

●

●

●

●

●

Saga Production Headquarters

5,813

FY

Tanaka Kikinzoku Jewelry K.K.（TKJ）
Store: GINZA TANAKA
Main Store (Ginza) Shinjuku Store Store at Hotel Chinzanso Tokyo
Isetan Tachikawa Store Isetan Urawa Store Yokohama-Motomachi Store
Sendai Store Nagoya Store Nagoya Mitsukoshi Sakae Store
Shinsaibashi Store Takamatsu Mitsukoshi Store
Fukuoka Nishitetsu Grand Hotel Store

●

2018

Hiratsuka Oﬃce

Headquarters (Tokyo) Iwate Plant Tomioka Plant
Ichikawa Plant Sodegaura Plant Isehara Plant Hiratsuka Plant
Shonan Plant Hiratsuka Technical Center
Tsukuba Facility / Tsukuba Technical Center Isehara Technical Center
FC Catalyst Development Center Tanaka Distribution Center
Nagoya Branch Osaka Branch Fukuoka Branch Kyoto Sales Oﬃce

●

2017

Electroplating Engineers of Japan, Limited（EEJA）

Headquarters (Tokyo)

Tanaka Kikinzoku Kogyo K.K.（TKK）
●

2016

3,000

37

2016

2015

Metalor Technologies International SA is included.

TANAKA Holdings Co., Ltd.（THD）

●

4,545

4,000

Domestic bases
●

2014

6,000

Platinum & Palladium Market (LPPM). In both cases, TANAKA

analytical skills of all accredited gold and silver reﬁners.

9,253

Total assets

80

50

9,766

CONTENTS（100 million yen）

89

100

10,267 10,643

4,000

Net income

Code of Conduct

8,564

NIPPON PGM AMERICA, Inc.

●NIPPON PGM EUROPE S.R.O.

(Data as of May 31, 2019)

Editorial Tanaka Kikinzoku Group publishes its CSR Report to report the corporate social responsibility (CSR) activities promoted by the Group for making
contribution to the realization of a prosperous society and a beautiful future for the Earth supported by precious metals, as well as to enhance
Policycommunication with stakeholders for the improvement of the Group's initiatives in the future. Last year, this report adopted a new design concept ofspring," which symbolically represents that new values are generated from the activities of the Tanaka Kikinzoku Group like a spring that never runs
dry and make a social contribution.
We would be honored to receive feedback from our stakeholders. Your comments and opinions will be used to improve the Tanaka Kikinzoku
Group's future initiatives.

PeriodApril 1, 2018 to March 31, 2019
In order to provide a general view of activities under each topic covered in the report, some contents may represent activities taken outside this period.

Scope

TANAKA Holdings Co., Ltd. and consolidated subsidiaries. However, Metalor Technologies International SA is excluded. Indications are made in areasof the report where the scope diﬀers.

Publication
Reference
guidelines
WebsiteJuly 2019

Publisher

TANAKA Holdings Co., Ltd. CSR & Corporate Communications Division, CSR Promotion Department
Tokyo Building 22F, 7-3 Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-6422, Japan
Tel: +81-3-6311-5506 (direct), Fax: +81-3-6311-5508
website: http://www.tanaka.co.jp/english/index.html

ISO26000:2010
Environmental Reporting Guidelines 2018

Third-party Assurance of
CSR Performance
24 Results of the Questionnaire
Survey for CSR Report 2018
Third-party Opinion

This report and past issues are also available on our website:
http://www.tanaka.co.jp/english/csr/index.html

TANAKA CSR REPORT 201901

Message from the President

Establishing a solid business foundation that is essential for the realizationof the ideal state we would like to achieve in 2020 on a global scale
While pursuing real productivity improvement accompanied by safety and health, we will prepare
for a wide range of risks and promote CSR activities that satisfy stakeholders across the world.
Realization of real productivity
improvement

Towards the ideal state we would liketo achieve in 2020and safety, environmental problems, leakage of personal

We also continue to enhance customer management based

information, leakage of conﬁdential information, response toon the concept of KYC (know your customer), as well as

While we belong to the manufacturing business and material

Tanaka Kikinzoku Group promotes the GOGO Plan 2020, a

conﬂict minerals and ﬁnancial derivatives, we evaluate andmeasures for CSR procurement, at the initiative of Responsible

industry, we have felt more strongly in recent years that

six-year medium-term management plan launched in ﬁscal

prioritize the risks and take measures to address them.

Business Department, which was newly established in April

the industry is also in the middle of the fourth industrial

2015. The ﬁscal year 2018 was the ﬁrst year of the second

revolution. The momentum of productivity improvement,

stage for the GOGO Plan 2020. We set the goal to bewhich was triggered by the concept of the IoT, has driven

reached in three years of the second half of the plan as thethe development of AI to prepare for the anticipated"ideal state we would like to achieve" and made eﬀorts toshortage of labor, as well as the emergence of huge data

meet the performance targets in the three key precious metal

centers with big data as a foundation for manufacturing. In

businesses, namely industrial products, assets and jewelry.

Japan, a related law was enforced from the aspect ofIn the industrial products business, multiple top management

work style reforms in April 2019. While we have alreadystaﬀ members were relocated. Metalor, a principal Group

worked to improve productivity in our manufacturing

company in Switzerland, changed presidents in January 2019sites in a continuous manner, our development, sales andwith the new president taking over the business foundation

management departments also have to further increase

promoted by the former president, and started to develop a

productivity. Meanwhile, we consider that we have tobusiness that seeks a new alloy combining TANAKA andaccurately identify and respond to the comprehensive

Metalor on a full scale. In the assets business, we also started

business operation risks incurred because of the changing

to oﬀer Gold Accumulation Plans in January 2019, whichbusiness environment and properly maintain corporate

are Tanaka Kikinzoku's new online accumulation accountgovernance as preconditions for real productivity

program that is even more convenient for customers. In the

improvement.

jewelry business, we adopted a policy of going back to theWhat I consider most important as a policy consistently

basics under the slogan of "Tanaka Kikinzoku is a synonym

applied to this matter is "productivity improvement based onof gold = Back to the Gold" to satisfy the demands of thethe safety-ﬁrst principle" and I always tell it to employees.

customers who love Tanaka Kikinzoku.

This is relevant not only to manufacturing sites. I believe that

In line with the development of these businesses, we identify

physical and mental health is also a foundation for creating

and address various risks to us through the Risk Management

wisdom and ingenuity to keep evolving the work styleCommittee set up to supervise risk management throughout

reforms based on productivity improvement irrespective of

the Group in ﬁscal 2015. Subdividing the types of risks tojob category or position.

be addressed into natural disasters, occupational health

GOGO Plan 2020
What Tanaka Kikinzoku Group Wants to Be in 20202018.

Pursuit of manufacturing that createssocial value
In the meantime, there were two cases where ourmanufacturing activities received a commendation in ﬁscal
2018. Firstly, we had the honor of receiving the Japan
Industrial Safety and Health Association Chairperson Prize in
the FY2018 Occupational Health and Safety Activity Awardsof the Japan Industrial Safety and Health Association (JISHA)in recognition of our activities to promote safety andoccupational health in manufacturing with understanding of
the activities of JISHA, as well as our contribution to the

In addition, we took measures to respond to the partial
enforcement of the Act on the Arrangement of Related Acts
to Promote Work Style Reform in April 2019 one year aheadof the requirement, including encouragement of employees
to take annual paid holidays for ﬁve days in a planned
manner, in ﬁscal 2018. We also issued "Healthy Company
Declaration" in December 2018 and are now enhancing
activities to acquire the healthy company "silver" certiﬁcationby the end of ﬁscal 2019.

To our stakeholders in the world

local community and industry. Secondly, Tomioka Plant of

These various measures are indispensable for us to maintain

Tanaka Kikinzoku Kogyo K.K., which is our mother factory

our business activities in a stable manner and fulﬁll ourfor the supply of materials, received Reviewer's Prize incorporate social responsibility (CSR). We will continue tothe Successful Case of Energy Conservation Category of thecertainly address risks with the Risk Management Committee

FY2018 Grand Prize for Excellence in Energy Eﬃciency andplaying the pivotal role.

Conservation, which is organized by the Energy Conservation

We will continue to reinforce our business foundation throughCenter, Japan and sponsored by the Ministry of Economy,

the improvement of communication and cooperation within theTrade and Industry. While Tomioka Plant has many precious

Group and further promote and develop CSR activities to satisfy

metal melting furnaces and large-scale processing machines,

all stakeholders including customers, suppliers and partner

its activities to reduce and optimize power consumption

companies all over the world. I would be happy if you readby compressors, which represents a high percentage ofthis report and place your expectation on the Tanaka Kikinzoku

the total power consumption in the plant, were highlyGroup, which will promote CSR activities in a more global way.

evaluated.

We will do our best to live up to your expectations.

TANAE, Akira
President & CEO,Tanaka Holdings Co., Ltd.

Having inherited thefree and vigorous corporate culture,
Tanaka Kikinzoku Group has grown and developed
to be a global company as a resultof the further promotion of thethree key precious metal businesses.

02

TANAKA CSR REPORT 2019

Start

State we needto achieve

FY2015FY2017

Ideal Statewe would liketo achieve

FY2020TANAKA CSR REPORT 201903

Strength of TANAKA

Businesses of TANAKA andValues Provided by It
TANAKA has delivered special values based on precious metals to the world
for more than 130 years since the foundation. We will continue to try everything
we can do with precious metals and develop new ﬁelds.

Industrial
Products

Strength of TANAKA

We provide products that solve problems faced by customers in a very wide variety of ﬁelds,
ranging from semiconductors and electronic parts to automotive materials and medicine.
We underpin the industry in general and the foundation of society through the supplyof precious metal materials as an "unsung hero."Gold & Silver Products Company

Semiconductor Application Company

Supply of gold, silver and alloy
metal-based materials (electricalcontacts, sputtering target
materials, joining materials, etc.)

Supply of materials for semiconductor
devices(bonding wires, plating solutions andequipment)

Chemical & Reﬁning Company

Global Marketing / R&D Division

Supply of paste, catalyst andcompounds with focus on the precious
metal recovery and reﬁning business

Creation and commercialization of
new precious metal products that
contribute to society

Tanaka Kikinzoku Group started life as a money exchange business dealing precious metals in Tokyo in 1885. Since
then, we have supported social development through the supply of industrial products made from precious metals.
In 1907, we successfully established the commercial production of platinum ﬁlaments used in light bulbs. Later, we
produced contacts for communications equipment, crossbar contacts for telephone switchboards and otherproducts mainly made from precious metals. We have commercialized ultraﬁne gold wire for bonding, catalysts forautomotive sensors and exhaust gas puriﬁcation, catalysts for fuel cells, crucibles used to produce sapphire
substrates for LEDs, etc. and are now working to develop and commercialize precious metal materials.
Under the slogan of Mastering Precious Metals, through business activities involving the research, development
and stable supply of materials with focus on precious metals, we will proactively take measures to tackle
environmental issues, energy problems and pollution, contributing to the creation of a prosperous society and abeautiful future for the Earth.

PGM Products Company
Supply of platinum group materials(platinum devices for glass melting,sputtering targets for harddisks,
ultraﬁne wires for sensors andmedical uses)

Asset

We provide a One Stop Service for everything about
precious metals, from bullion supply to process andmanufacture, sales and recycling. Thanks to the supply
routes, extensive technological capabilities, solid researchsystems, product development strengths and a domestic
and international network of facilities that we have built
up since the company was established, we provide total
support to our customers in solving their issues andmaking improvements.
Demand-based processing

Processing to manufacture electrical contacts, printed
wiring boards, chemical compounds, catalysts, bonding
wire, plating solution, plating equipment, etc.

15%

We oﬀer gold and platinum products
to diversify and protect assets
in an optimal manner.

Jewelry

We deliver jewelry, which shines brightly
in various scenes of life, with reliable qualitythat is worth treasuring for a long time.

Bullionprocurement

70%
Industrial precious metals products
From supply to recycling, we handle them as materials for awide variety of industries and products.
Precious metals asset products
From the purchase of bullion and coin to the sales of them,
we engage in various businesses including the supply of products
to be reserved as assets.
Precious metals jewelry products
Metal, bridal and other jewelry and crafts

Jewelry
Coin

Processing
andmanufacturing

One Stop Service
Urban mine

Proposal of total solutions to
identify and solve problems

Recycling

Sales

Precious metals recycling
Recovery of products that are no longer useful
to society to recycle them as bullion

Ultimate Cost Reduction Method: Recycling

Accumulation services

TANAKA CSR REPORT 2019

Total Solutions

TANAKA's activities are based on the eight precious metalelements of platinum (Pt), gold (Au), silver (Ag), palladium(Pd), rhodium (Rh), iridium (Ir), ruthenium (Ru) and osmium(Os). Industrial precious metals products account for 70%
of our business activities. TANAKA's products play activeroles in a wide range of items used in our daily lives suchas home appliances, information technology devices andautomobiles.

15%

Bullion04

Foundation for the Group's Activities

Bridal jewelry

Artifacts

Valuable precious metals create value only when they are eﬀectively used.
To recycle precious metals contained in a product that has reached its end, they usually have to be traded through a market
or processed into a form capable of being physically handled ﬁrst. The former incurs a cost to go through the market (spread,or diﬀerence between the selling and buying prices) and the latter generates extra lead time due to the processing anddistribution.
Tanaka Kikinzoku Group oﬀers a fully integrated, one-stop service. We do everything from bullion procurement to material
processing, manufacturing, sale and recycling, without trading in the market. This provides our customers with shorter leadtimes and a reduced cost of procuring bullion. In addition to used industrial products, waste scraps and bullion attached toequipment generated during the manufacturing process can also be recycled, which is also an ultimate cost reduction method.

TANAKA CSR REPORT 201905

For the Sustainable Future

Exploration of Various Possibilities
Tanaka Kikinzoku Group has continuously pursued the potential of precious metals basedon its creative technological abilities.
We make use of the excellent properties of precious metals in a wide range of industrial
ﬁelds to support various technological innovations for the creation of a sustainable future.

With the widespread use of smart devices and progressin computerization in recent years, there has been
constant demand for the improvement of the performanceof semiconductors and the reduction of their cost. In thecommercialization of leading-edge semiconductors, suchinnovations require the discovery of new processes andnew excellent materials. In particular, for the reﬁnementof semiconductor devices, the development of newmaterials is an urgent task and processes using precious
metals are also proposed.
Tanaka Kikinzoku Kogyo K.K. is committed to thedevelopment of precious metal precursors for CVD/ALD
used to form thin ﬁlms of ruthenium, which has excellent
chemical and electrical properties, as well as platinum,
iridium, etc. We will design and develop precious
metals precursors that help improve the performance ofFuel cells are becoming more widespread on a global
scale towards the creation of a hydrogen-basedsociety. Tanaka Kikinzoku Kogyo K.K. has worked forthe development of fuel cell electrode catalysts formany years. Its shipments of electrode catalysts forpolymer electrolyte membrane fuel cells (PEFCs) areamong the largest in the world.
Being small, lightweight and high-power, PEFCs are used
for fuel cell cars, residential-use fuel cell "ENE-FARM,"
etc., and demand for them is expected to increase.
Accordingly, in January 2019, we signiﬁcantly enhanced
the production abilities of FC Catalyst Development
Center, our R&D and production base for electrodecatalysts.
We also exhibited fuel cell electrode catalysts, alongwith electrode catalysts for water electrolysis, which are2

Potential of Precious Metals●

Increases in the markets where precious metals are applied
Organic EL▼

Increases in the markets where
precious metals are applied

Composed of the eight elements of platinum, gold, silver,
palladium, rhodium, iridium, ruthenium and osmium,
precious metals are materials with inﬁnite possibilities
and various properties such as high resistance tochemicals, corrosion resistance, high conductivity, highductility, thermal resistance and catalytic actions. Under
the slogan of Mastering Precious Metals, the Tanaka
Kikinzoku Group has been committed to the researchand development, stable supply and recycling ofproducts that make eﬀective use of the properties ofprecious metals based on its technologies improved
over many years. Through business activities that unlock
the potential of precious metals, we will try to develop
and provide products that help solve environmental
and energy issues and contribute to the creation of a▼Environmental
catalyst

Environment
New energy▼Fuel cell

Solar cell▼▼Superconductor
base material▼LED▼Diagnostic
kit▼Anticancer drug

Medical▼Exhaust system,
fuel system▼Electrical system

Automotive▼Engine system

Electronics equipment(semiconductors, displays)▼Cellularphone▼Game console

DRAM▼
Flash▼MRAM▼▼FeRAM▼Power semiconductor▼DVD▼Blue-ray▼HDD▼Computer▼PC▼Semiconductor (gold wire) ▼LCD
▼SensorCommunications
equipment▼Light bulb

▼Electronic automatic exchange▼Crossbar switching system▼Digital system(contact)▼Home

Electric (platinum wire) applianceprosperous society and a beautiful future for the Earth.

5
88

n1

di

e
nd

u

Fo
TANAKA CSR REPORT 2019

○ Precious Metal Precursor for CVD/ALD*○ Fuel Cell (FC)2

06

Industries and Technological Innovations

1

0
92

1

0
94

60

19

70

19

80

19

90

19

00

20

10

20

d

an

○ Operations and Treatment
with Less Physical Burden

In the medical ﬁeld, in response to the need for treatment
with less physical burden, therapeutic techniques using
catheters are evolving to minimize anesthesia and skinincision. The instruments used in catheter therapy suchas guide wire and stent, as well as markers that indicate
their positions in the body, require in vivo safety and highvisibility under radioscopy. To achieve those properties,
precious metals such as platinum, gold and iridium areconsidered to be suitable as the materials.
Tanaka Kikinzoku Kogyo K.K. is committed to thedevelopment of platinum materials for such medical
indwelling devices based on the high purity and qualityof precious metals and its ﬁne processing techniques.
For the practical use of products that can properly

advanced semiconductors and reduce the cost basedon our original recycling techniques so that we cancontribute to technological innovations for informationsociety through semiconductor devices.
* CVD/ALD: chemical vapor deposition andatomic layer deposition

necessary for hydrogen production, palladium hydrogen
permeable ﬁlms, which realize high-purity hydrogen
puriﬁcation, and other items in FC EXPO 2019, oneof the world's largest fuel cell trade shows held inTokyo from February to March 2019. We will work forthe research and development and stable supply of
products that help create a hydrogen-based society.

FC Catalyst Development Center, which was expanded
in January 2019and quickly meet the needs in the clinical ﬁeld inJapan, we are promoting development through abusiness-academia collaboration with School of
Medicine, Tokai University. We would like to contributeto the improvement of people's health and welfare, suchas their quality of life (QOL), through the development ofprecious metals for the medical ﬁeld.

TANAKA CSR REPORT 201907

HumanRightsContinuous Development of Trust

Fair Operating
Practices

Consumer Issues

Quality of TANAKA
Delivery of "good items" to customers is a principle of Tanaka Kikinzoku Group.
In addition to the quality of products, we also pay attention to human rights,
the environment, health and safety, ethics and other issues in the processof producing products.
Good Delivery Referee
Tanaka Kikinzoku Kogyo K.K. serves as a Good Delivery
Referee that assesses accredited reﬁners to help
guarantee the quality of precious metals distributed in
the world. The company is appointed as a Good

We have established and operated a quality
management system (QMS) based on ISO 9001 in all
factories of the Tanaka Kikinzoku Group.
We also review the eﬀectiveness of the QMS and
improve the system through, for example, theintroduction of requirements of IATF16949, which is a
QMS standard for the car industry, so that we canpromptly respond to wide-ranging customer demandon quality and continuously supply safe and secure
products that satisfy customers.

Delivery Referee for gold andsilver by The London Bullion
Market Association (LBMA), andas a Good Delivery Referee
for palladium and platinum byLondon Platinum & Palladium
Market (LPPM), respectively.

Quality Management System Diagram
Customers

Eﬀects of QMS

Do
SupportCustomerrequirements

Tanaka Kikinzoku Group has received awards, etc. from various customers in appreciation for our eﬀorts to support
their production activities.
FY2018

Quality Management Activities Based ona Quality Management System●

Evaluation from Customers

Operation

Check

Plan
Plan

Leadership

Demand andexpectation of
stakeholders

Customersatisfaction

Performance
evaluation
Products

Improvement

Act

Major awards given by customers

Company

CustomerAward

Reason for the commendation

AuAg

ON Semiconductor

FE Perfect Quality Award

Excellent quality

AuAg

Panasonic Corporation

Special Award for Restricted
Material Replacement (technology)

Realization of the elimination of Cd and cost reduction,and contribution to enhancing the added value of products

AuAg

Taiyo Yuden Co., Ltd.

Special Award

Evaluation of actions for the prices and qualityof roller/axis electrodes and technical proposals

AuAg

Meidensha Corporation

Excellence Award in the quality category

Achievement of zero defects for four consecutive terms
through the promotion of quality activities

ChemicalRecoveryNGK SPARK PLUG CO., LTD.

Excellence Prize in the material category

Overall evaluation (management, technical capabilities, quality,
contribution to cost reduction, delivery time)

PGM

Nippon Electric Glass Co., Ltd.

2018 Excellent Partner Award

Realization of recasting in China and the launch of TKCC

PGM

Western Digital2018 Best in Class Award

Overall evaluation (delivery time, quality, prices)

PGM

Fuji Electric Co., Ltd.

FY2018 Partner

Stable quality (received for ﬁve consecutive years)

Semiconductor

ASE Group

Best Supplier Award

Highest rate for QCD of gold wire

Semiconductor

Mini - Circuits Technologies
Malaysia Sdn. Bhd

Excellent Supplier Award

Outstanding quality and performance

Semiconductor

Japan Semiconductor Corporation

VA Contribution Award

Proposal on recycling and processing of plating solution by EEJA

New Business

The Japan Society of Applied Physics

Excellence Prize in the 6th Exhibition Award

Result of a vote by participants in the academic society

Realization of CSR Activities That Satisfy Customers○ Eﬀorts to Enhance the Reputationof Our CSR Activities

Tanaka Kikinzoku Group performs business activities inconsideration of CSR issues including human rights, theenvironment, health and safety and ethics, and has
established Tanaka Kikinzoku Group Code of Conduct
and Tanaka Kikinzoku Group Standards of Conduct,
which are in line with the spirit of the RBA Code of
Conduct*¹, to meet the demand of customers in theworld as well as social expectation. In ﬁscal 2018, we
implemented an audit by a third-party institution
accredited by RBA, as well as an audit by a customer,in multiple factories in Japan and overseas and tookcorrective actions. In addition, we call on approximately
200 suppliers to comply with the RBA Code of Conductand continuously conduct the survey of their status ofcompliance and feeding back of the results.
In the assessment by EcoVadis*², a supply chain CSR
assessment agency, concerning the environment,
society, ethics and supply chain, we were awarded asilver rating again in 2018.

○ Eﬀorts for Responsible Procurementof Minerals

We promote responsible procurement of raw materials.
To this end, Tanaka Kikinzoku Kogyo K.K. has established
its Responsible Mineral Management Policy to control
risks related to the transaction of conﬂict minerals including
gold, tantalum, tungsten and tin in the procurement of
raw materials and to avoid any procurement involving
violation of human rights, terrorism, money laundering,illegal transactions, inhuman acts and armed groups.
Our transaction of gold is managed based on the LBMA*
Responsible Gold Guidance and we obtained certiﬁcation
after an audit by a third party, which has been renewed
every year since 2014. With respect to silver as well, weplan to undergo an audit by a third party in May 2019to obtain certiﬁcation.

LBMA Responsible Gold Certiﬁcate
EcoVadis certiﬁcate*1 RBA Code of Conduct: Code of conduct establishedby the Responsible Business Alliance (RBA)*2 EcoVadis: CSR assessment platform in which more than 50,000 organizations
from 190 business categories and 150 countries in the world are registered. Gold,silver, bronze or no medal (four-grade evaluation) is assigned depending on the rating.

08

TANAKA CSR REPORT 2019

"Responsible Mineral Management Policy"
http://www.tanaka.co.jp/sourcing̲policy/

TANAKA CSR REPORT 2019

09

The
Environment

Continuous Development of TrustProtection of
the Global Environment

Eﬀorts to Reduce CO₂ Emissions

To hand down the beautiful earth to the future is a task sharedby the international community and also a major challenge.
Tanaka Kikinzoku Group is pursuing every possibility to minimize
the environmental impact of its business activities.

GOGO Plan 2020 ˜ Environment ˜"To be a leading company in environmental conservation in Japan

Ideal State we would like to achieve

State we need to achieve

Speciﬁc activities and measures to be a leading company
in environmental conservation can be designed and launched.
FY2015toEnvironmental activities, including protection of the environmentand contribution to biodiversity, are actively performed
to be a leading company in environmental conservation.

FY2017FY2018to

FY2020We have established the environmental action policy for the whole Group based on the mid-term business plan GOGO Plan 2020"and speciﬁed that the "Ideal State we would like to achieve" in ﬁscal 2020 is "to be a leading company in environmental
conservation in Japan."

Environmental Management System
All of our production bases in Japan have obtained ISO
14001 certiﬁcation on environmental management, andmake continuous eﬀorts to perform environmental
conservation activities through the implementation of the
PDCA cycle. In particular, we set targets for the Group asa whole to reduce CO₂ emissions (for prevention of
global warming) and industrial waste emissions (forthe establishment of a recycling-oriented society) anderadicate environmental incidents (for prevention ofpollution), and aggressively strive to meet the targets.
To promote environmental conservation activities ina steady and smooth manner, we have set up aGroup-wide structure with the Central Environmental
Committee, which is composed of plant managers andfacility managers, at the top. In addition, SHE* PromotionOﬃce Manager Council, as well as the Environmental
Managers Sub-committee composed of environmental
managers, holds a meeting periodically to share
information and exchange opinions actively.
* SHE: Safety, Health and the Environment●

Structure to promote environmental conservation activities
TANAKA Holdings Co., Ltd.
President, executives
CSR Promotion Department
Central Environmental Committee
SHE Promotion Oﬃce Manager Council
Environmental Managers Sub-committee
Environmental Committee of each plant and facility

10

TANAKA CSR REPORT 2019

Environmental Incident Eradication Activities
To prevent air pollution, water pollution and soil
pollution, we have set internal limits that are evenstricter than the levels required by law. In particular, theinternal limits for air and water pollutants are set to be
50% of the regulatory values in principle.
In case of any environmental incident, such as an excess
over the internal limit, we respond promptly to it andstrive to identify the cause and prevent its recurrence.
We convey information internally through "ﬂash reports
on environmental incidents" and submit reports torelevant government bodies in accordance with thereporting and notiﬁcation standards. While we had
four environmental incidents in ﬁscal 2018, we tookcorrective measures immediately and have worked toprevent their recurrence.

Air pollution

0

6.0

5.3

Reduced by approx.
30%

5.0

5.1

5.2

4.7

4.0

4.1

3.6

3.5

3.6

3.7

3.8

3.8

3.0
2.0
1.0
0.0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

FY

The CO₂ emission factor of TEPCO Energy Partner, Incorporated
in FY2017 (0.462 kg-CO₂/kWh) is retroactively applied to the calculationof CO₂ emissions from power consumption for all ﬁscal years.

Tomioka Plant received the Reviewer's Prize of the 2018 Grand Prize for Excellence

TOPICS in Energy Eﬃciency and Conservation

The plant received the prize in recognition of its eﬀorts to reduce thepower use of compressors, which represents a large percentage ofpower use in the plants, as well as its remarkable results.
Grand Prize for Excellence in Energy Eﬃciency and Conservation is a
program to commend great cases of energy saving eﬀorts, productswith excellent energy saving performance, etc. in order to contributeto the establishment of energy saving society with higher awareness ofenergy saving across Japan, the widespread use of energy saving
products and other initiatives.

Award ceremonyin January 2019

Certiﬁcate ofcommendationand plaque

TANAKA NOWTomioka Plant uses the largest amount of energy in the whole company and has performedenergy saving activities according to the Core Environmental Policy for many years. The
Energy Saving Committee in the plant aims to ensure that the activities are maintained
while trying to create an environment where staﬀ can exchange opinions easily. In
recognition of those energy saving activities with the involvement of all employees, we
received the Reviewer's Prize in the 2018 Grand Prize for Excellence in Energy Eﬃciency
and Conservation. The prize was a great encouragement for us and I would like to thankthose who have given us instruction as a responsible person. We will continue to makesteady eﬀorts to save energy.

Eﬀorts to Reduce Industrial Waste Emissions

6

2

CO₂ emissions

OthersWater pollution

8

4

●

CO₂ emissions (10,000 tons)

KIMURA, Shinichi Leader, Production Engineering Section, Tomioka Plant, Tanaka Kikinzoku Kogyo K.K.

● Number of Environmental Incidents（Cases）10

We strive for the reduction of CO₂ emissions fromproduction activities to contribute to the prevention of
global warming. As a result of a company-widecommitment to energy saving activities after the Great
East Japan Earthquake in March 2011, we reduced CO₂
emissions by approximately 30% over the past 10 years.
However, CO₂ emissions in ﬁscal 2018 increased by 1.4%
from the previous ﬁscal year to 38,000 tons. In recent
years, our energy use has been increasing slightly due toour active business activities. We will continue to enhanceenergy saving activities such as the eﬃciency increase andoperational improvement of various devices to further
reduce CO₂ emissions.

2
1

3
2

2014

4

2015

1

2016

1
1

3

2017

2018

FY

We generate a large amount of acid and alkali waste liquid
when precious metals are dissolved, reﬁned or collected fromwaste precious metal solution. As a result of the thoroughseparation of waste to promote 3R (reduction, reuse andrecycling), we reduced industrial waste emissions byapproximately 70% over the past six years. On the other
hand, the waste emissions in ﬁscal 2018 increased by 12%
year-on-year due to the impact of our active business activities.
We will continuously promote measures to ensure that we
can restrain the generation of waste even if our businesses
are expanded.

●Industrial waste emissions(tons/year)

12,00011,296

Reduced by approx.
70%

10,000
8,000
6,000
4,000

6,507

5,598

4,339

4,028

3,714

4,165

2,000
0

2012 2013 2014 2015 2016 2017 2018FY

TANAKA CSR REPORT 2019

11

The
Environment

Continuous Development of TrustProtection of
the Global Environment● Resource Productivity

Resource productivity
Resource productivity (10,000 yen/ton)

14,000Eﬀective Use of Precious Metals

12,000● Schematic Material Flow Diagram in Japan (ﬁscal 2016)

8,000

Amount of externally procured bullion (tons)

16,809273

13,595
10,78912,582
290

276

700

16,673

331

600
500

11,140
338

270

6,000

269

Imported Importresources (781)(721)

Total material input(1,609)Input ofnaturalDomestic resources
resources (1,359)

(578)

0

Net additions to stock(497)

Energy consumption andindustrial process emissions(524)

CompostFood consumption (85)(14)
Natural return (76)

Waste generation(564)

Water content etc. * 1(260)

Reduction(223)

Final disposal
(14)

2013

2014

2015

2016

2017

2018

FY

Accordingly, Tanaka Kikinzoku Group has formulated new environmental indicators. In response to the revision of theEnvironmental Reporting Guidelines, we deﬁned the material environmental impacts for us as "the amount of precious
metal bullion inputs and the recycled amount" and established the bullion ﬂow diagram and two indicators inaccordance with the material-cycle fundamental plan of the Japanese Government.
● Bullion Flow Diagram of the Tanaka Kikinzoku Group (ﬁscal 2018)

Internal recycling 631

877

CustomersZerodisposalby landﬁll(corporations and individuals)

TANAKA's products(for industrial products, assets and jewelry)(Unit: tons)

・Kinds of precious metals: Platinum, gold, silver, palladium, etc.
・External procurement: Bullion purchased through the market from trading companies, mining companies, etc.
・Recovery and reﬁnement: Bullion reﬁned from the items recovered from customers
・Internal recycling: Part of bullion generated in the manufacturing process but not used in products. Returned materials.
・Shipped products: Bullion shipped as products.

Support of an NPO
As an initiative to conserve biodiversity, Tanaka Kikinzoku
Group started to cooperate with Tsurumi River Basin
Networking, which is an NPO in Yokohama, Kanagawa(represented by Dr. Yuji Kishi), in ﬁscal 2019. We
support the Multi-nature River Development Blooming
Tsurumi River Project, which was launched by the NPO
in April 2019.

Indicators in the material-cycle
fundamental plan of the Japanese Government.

Environmental indicatorsof the Tanaka Kikinzoku Group①Resource productivity

GDP/Amount of the inputs of natural resources, etc.

Gross margin on sales/Amount of external procurement②Cyclical use rate

Recycled amount/Total amount of material inputs

Recycled amount/Total amount of bullion inputs③Final disposal amountAmount of landﬁlled waste―

TANAKA CSR REPORT 2019

82.6

82.2

2,500

50.0
30.0
20.0
10.0
0.0

2,000

1,544 1,535 1,578 1,507 1,610 1,553 1,509
338

270

269

527

626

642

609

792

648

646

641

631

2014

2015

2016

2017

2018

273

290

276

471

501

509

801

744

2012

2013

331

1,500
1,000
500
FY

0

Raising Awareness among Employees andTheir Families through Eco Tours
While giving economic support to an NPO specializingin the conservation of biodiversity, we now organize
eco tours to raise awareness of the conservation of
biodiversity among employees.
As the ﬁrst tour, we organized a walk in Koajiro Forest
in Miura, Kanagawa on Saturday, May 25, 2019.

Forest walk

Walk around a swamp

Walk around a tidal ﬂat

Walk on the seashore

Dance of asmall ocypodoid crab

Red-clawed crab brooch

Orangedaylily

In this project, alternative and attractive indigenous
plants that need only small maintenance work (e.g. cow
parsnip, tawny daylily, orange daylily and coastal daylily)
will be replanted in the places that are covered byexotic species causing hay fever, such as hybrid ryegrass,therefore have to be treated regularly with weeding, etc.
The project aims to create safe and biologically diverse
multi-nature biotopes.
Cow parsnips and the varietiesof daylily bloom beautifully
from July to September. Various
species of swallowtail butterﬂies
such as old world swallowtail
and Chinese windmill are
attracted to the ﬂowers to Coastal daylilies and a Chinese
peacock butterﬂysuck nectar.
In the future, we will also consider a participatory
program where employees cultivate orange daylilies
in their houses for replanting.
Photo courtesy of Non-Proﬁt Organization Tsurumi River Basin Networking

12

78.0

79.0

(*) Concept to concurrently achieve a sound material-cycle society and economic activities. It is required to generate wealth from waste materials and from waste in business activities.

Cultivation of orange daylily andreplanting of it in various locations

Production activities(for industrial products, assets and jewelry)

82.5

Resource productivity represents the proﬁt per ton of externally procured bullion and can be regarded as the earning
power from an environmental perspective. The ﬁgure reached a record high in ﬁscal 2017 and remained unchanged
in ﬁscal 2018. Cyclical use rate indicates the ratio of the amount of bullion recycled internally to the total amount ofbullion inputs and has been around 80%. Note that we have not established an indicator equivalent to the ﬁnal
disposal amount for the Japanese Government because we do not dispose of any precious metal.
In the future, we will improve those environmental indicators to contribute to the establishment of a sound material-cycle
society and the realization of a circular economy (*).

(for industrial products,
assets and jewelry)

Products of other companies

3,000

81.1

70.0

40.0

Shipped products

1,240

80.0

82.4

(mil. tonnes)

Formulation of New Environmental Indicators

Total amount
Recycled of bullion inputs
amount
1,509

90.0

300

0

Amount of bullion inputs (tons)

100.0

Initiatives to Conserve Biodiversity

Recycled amount (251)External
procurement 269

2012

Cyclical use rate (%)

60.0

100

2,000

Export (184)

Cyclical use rate
Internal recycling
Recovery and reﬁnement
External procurement

400

200

4,000

Imported products (60)

Source: Ministry of the Environment

Recovery and reﬁnement 609

12,08410,000The Fundamental Plan for Establishing a Sound
Material-Cycle Society, which was approved by the
Cabinet in March 2003, set the diagram of material
ﬂow in Japan as a whole and three indicators,
namely resource productivity, cyclical use rate andﬁnal disposal amount.
In the meantime, Environmental Reporting Guidelines
2018 was published in June 2018. In this revision,
entities are required to not comprehensively reporton the overall material ﬂow but independently
identify and disclose the material environmental
impacts they must address.

Suppliers

Amount of externally procured bullion

18,00016,000

Actions of the Japanese Government
for the Establishmentof a Sound Material-Cycle Society● Cyclical Use Rate

A total of 25 employees and their family members
joined the walk to stroll through the forest and arounda tidal ﬂat. They watched courtship dance of small
ocypodoid crabs and observed ﬁreﬂies.
We also worked to conserve coastal daylilies, which isendangered due to the damage of tidal waves andillegal digging.

Replanting of coastal daylilies with
employees and their families

Coastaldaylilies

We will continue to organize eco tours regularly to raiseawareness of environmental issues among employees
and their families.
Photo courtesy of Non-Proﬁt Organization Koajiro Outdoor Activity Organizing Committee
TANAKA CSR REPORT 201913

Community
Involvement

Continuous Development of TrustContribution to Local Communities
and Society
Tanaka Kikinzoku Group aims to develop activities that can contribute to the local
communities and countries with which we are linked through our business activities
so that they can be more healthy and prosperous. We are developing support activities
as corporate efforts, as well as volunteer activities of the employees, in various places
with focus on continuity.

Various Activities【Donation and Fund-raising Activities】

We made a donation to MIDS (a fund for mentally retarded
persons) with proceeds from an internal ﬂea market.
Tanaka Electronics Singapore Pte. Ltd.
July 2018

We donated part of the proceeds from the salesof pink ribbon products to "Smile Fund" ofthe Japan Cancer Society
Tanaka Kikinzoku Jewelry K.K.

TANAKA Holdings Co., Ltd.

Precious Metals and Jewelry

Certiﬁcation as a Tokyo Sports Promotion Company and as a Sports Yell Company
TANAKA Holdings Co., Ltd. sponsors various sports events and also organizes health-promoting events and otherprograms that encourage employees to have interaction with each other and improve their health through sports
activities.
In addition, we became an oﬃcial partner of the Japanese Para-Sports Association(JPSA) in 2012 and started to co-sponsor the Japan Blind Football Association(JBFA) and the Japanese women's blind football team in 2017. In recognition of
those activities, TANAKA Holdings was certiﬁed as a Tokyo Sports Promotion
Company by the Tokyo Municipal Government for four consecutive years from ﬁscal
2015 and as a Sports Yell Company by the Japan Sports Agency for two consecutive
years from ﬁscal 2017, respectively.

Support of and Participation in Sports for People with Disabilities
Tanaka Kikinzoku involves employees in Japan Para Championships organized by theJapanese Para-Sports Association, as well as domestic and international competitionsof blind football, as cheering spectators and volunteers. Both the number of ouremployees who have participated in various activities related to such sports and thecumulative total of participants are steadily increasing. To further stimulate theactivities, we launched a new program to recruit "para-supporters," who continuously
engage in activities to raise awareness of para-sports, from each plant and facility inﬁscal 2018. As the ﬁrst initiative, the supporters watched a goalball game forcheering and joined an event to experience the sport while wearing the same jacket
in February 2019. We will continue our eﬀorts to further enhance the understandingof sports for people with disabilities and promote them through various opportunities
including spectating and cheering and volunteer activities at the National Sports
Festival for People with Disabilities scheduled in October 2019.

Spectating andcheering at a
goalball gameby para-supporters
in February 2019

Co-sponsorship of Robot Contest for Technical College Students (Kosen-Robocon)

14

Tiny pin withpink sapphireon K18 pink gold

We provided a total of 12 medals for Tokyo Marathon 2019,
which were awarded to the respective top three ﬁnishers(gold, silver and bronze medals) in the men's and women's
marathon races as well as to those in the men's and women's
wheelchair marathon races, which have been internationalraces since 2016.

TANAKA Holdings Co., Ltd. has signed anagreement with the Tokyo Organising Committeeof the Olympic and Paralympic Games to become
a Tokyo 2020 Oﬃcial Supporter in the category of"Precious Metals and Jewelry" under the Tokyo
2020 Sponsorship Programme.

TANAKA CSR REPORT 2019

April 2018 to March 2019

【Sports Promotion Activities】

Tokyo 2020 Oﬃcial Supporter

Competition of ideas - Robot Contest of National Colleges of Technology(Kosen-Robocon) is an event where technical college students think outside
the box and create robots by themselves to experience the joy of
manufacturing. Students from 62 campuses of 57 technical colleges all overJapan compete in a preliminary round in eight regions, and the 25 teams thathave won the round move into the national competition held in Tokyo.
Tanaka Kikinzoku Group has co-sponsored the Robocon for technical college
students since 2012 to support manufacturing activities of young engineers.

No. of participants: 200

March 2019

Our employees worked as corporate volunteer staﬀ at the ﬁrst
water station in the Penang Bridge International Marathon.

We visited Tokai University Takanawadai Junior High School
and gave a lesson to let the students know the properties ofprecious metals and the scenes of life where precious metals
are used.
Headquarters of TANAKA Holdings Co., Ltd.,
Shonan Plant of Tanaka Kikinzoku Kogyo K.K.

November 2018

【Local Cleaning Activities】

The following plants and facilities implement activities to clean
plants, their neighborhood and other areas in a regular manner.
Plants and facilities of Tanaka Kikinzoku Kogyo K.K.,
Saga Production Headquarters of Tanaka Denshi Kogyo K.K.,
Electroplating Engineers of Japan, Limited,
Main Store (Ginza) of Tanaka Kikinzoku Jewelry K.K.,
Tanaka Electronics (Hangzhou) Co., Ltd.

【Blood Donation】

The following plants and facilities hold a blood drive in a regularmanner.
Isehara Plant, Hiratsuka Plant and Shonan Plant of Tanaka Kikinzoku Kogyo K.K.,
Saga Production Headquarters of Tanaka Denshi Kogyo K.K.,
Tanaka Electronics Singapore Pte. Ltd., Tanaka Electronics (Hangzhou) Co., Ltd.,
Tanaka Electronics Taiwan Co., Ltd.

Tanaka Electronics Malaysia Sdn. Bhd.
November 2018

No. of participants: 20

Donation and fund-raising activities

Sports promotion activities

Cultivation of human resources anddevelopment of art and culture

Local cleaning activities

Tanaka Electronics Singapore Pte. Ltd.

Gold, silver and bronze medals
for Tokyo Marathon 2019

Lesson given at the school

Tanaka Electronics (Hangzhou) Co., Ltd.

For other activities, see our website: https://www.tanaka.co.jp/about/csr/communication.html
Tanaka Kikinzoku Memorial Foundation○ Scholarship Program
We set up a scholarship program that aims to
support academic, technological and socio-economic
development in ﬁscal 2018. Students majoring inscience and technology are applicable. To be thecandidates, undergraduate students must be at theage of 23 or younger and postgraduate students mustbe at the age of 30 or younger. The scholarship period
is one year. In the ﬁrst ﬁscal year of the program,
applications were invited only from Tohoku University
and scholarships were provided to three students.
○ Grants for Research on Precious Metals
This grant program has been carried out every year
since ﬁscal 1999 to support research and development
on new technologies to which precious metals cancontribute. We received a total of 188 applications forthis 20th invitation and provided grants of 16.2 million
yen in total to 24 research projects.
Development of an iridium oxide microelectrode that can perform
localized pH measurements in the bodyGold Award 2 million yen

Dr. Tatsuro Goda, Assistant Professor
at the Tokyo Medical and Dental University

Creation of an analog nano-spin memory device using CoPt-based
nanocomposite material and an application of brain-like
information processing
National competition of Kosen-Roboconin November 2018

【Cultivation of Human Resources and Developmentof Art and Culture】

Gold Award 2 million yen

Dr. Shunsuke Fukami, Associate Professor
at Tohoku University○ Bond of Love - Cherry Blossom Trees Planting 135
This "Bond of Love - Cherry Blossom Trees Planting
135" program was launched in 2013 as a volunteer
initiative to assist the recovery of the Tohoku Region
from the Great East Japan Earthquake. In its sixth year,
we changed the style of activities and gave "double
support" (purchase of goods produced in the aﬀectedarea) instead of collecting money from employees. The
double support consists of the purchase of items
produced in the aﬀected area by employees as the ﬁrst
support and the donation of the money equivalent
to the purchases by Tanaka Kikinzoku Memorial
Foundation as the second support.
With this year's planting, we achieved the goal ofplanting 135 trees by 2020 when we celebrate our135th year in business. We were also able to expand
the support and added the "maintenance of thecherry blossoms" to the original aims of " creation arow of the trees in the furthest inland areas hit by thetsunami so that they can be landmarks for evacuation,""inheritance of memories" and "peace of mind of
the people aﬀected by theearthquake."
The goal of planting
135 trees was achieved
Planting of cherry blossom trees
TANAKA CSR REPORT 201915

HumanRightsContinuous Development of TrustLabor Practices

Active Role of Each Employee
While employees are being diversiﬁed, creation of a workplace where each of themcan fulﬁll their potential is essential for the future of the Tanaka Kikinzoku Group.
We are actively working to create such a workplace while paying attention
to various aspects.
Actions for Work Style and Vacation Style Reforms
Tanaka Kikinzoku Group is committed to work stylereforms to create a work environment where employees
can work vividly.

Child care leave: male

5

３Child care leave: female

55

41

Reduced working hours for child care:
male

3

1

Reduced working hours for child care:female74

69"Tomonin" markOur Group is committed topromoting the developmentof a working environment
where employees can balance
work and family care.

○ Support for Employees to Achievea Balance between Nursing Care and WorkTo assist employees with nursing care responsibilities, wehave a program where they can take nursing care leavefor 365 days for each member in need of nursing care.
They can also use the reduced working hour system fornursing care for up to three years per family member inneed of nursing care.

60 y. o.
Refreshment
leave

1

Newly appointed
president training

3

Short working hours during pregnancy

Director andexecutive training

１１．
２

55 y. o.
"GO-GO (55)"seminar

13.6

１１．
4

Newly appointed
director and newly
appointed executive
training

13.3

Average service years: female

50 y. o.
Refreshment
leave

Average service years: male

45 y. o.

Executive staﬀ training(business school)

10.37 hours 19.36 hours

40 y. o.

"Vital 45"
seminar

8.9 days

Management training(advanced)

11.5 days

35 y. o.

Refreshment
leave

Average overtime hours

68
1.86 %

Quasi-managementstaﬀ training

Average numberof annual paid holidays taken

70
1.52 %

Management training(intermediate)

Ratio of employees with disabilities

Retirement age of 62"Jump-up 35"
seminar825

Career improvement
training for young
employees

837

Elder training

1,942

Number of female employees

Follow-up training

1,937Management training(beginner)

2017

Number of male employees
Number of female managers

Mid-level and experienced
Manager training2018

2nd to 5th year

Compulsory education period

Introductory training

We have a short working hour system for pregnant female
employees to allow them to avoid crowded transportationand heavy traﬃc on the way to work. To support
employees raising children, they can take child care leave
until the child reaches the age of 2 years and use thereduced working hour system until the child becomesa second-grade elementary school student in April.
Employees can also take sick/injured child care leave forup to ﬁve days per child in a year or for up to 10 days ifthey have two or more children until the child becomes asecond-grade elementary school student in April.

In Japan

New employee (1st year)

Technological and production departments○ Support for Employees to Achievea Balance between Child Care and Work●

● Education Program

Department-speciﬁc education○ Reduction of Long Working Hours
We take initiatives to reduce long working hours suchas the introduction of no overtime day. A monthly
overtime cap is set in each department in an eﬀort to
reduce long working hours.

To enhance the employment of persons with disabilities,
we regularly participate in an event for the recruitmentof persons with disabilities and our plants and facilities
actively accept interns from local schools for handicappedchildren. Our system to help employees adapt
themselves to the workplace (job coach program) isalso used for job retention of the recruited persons
with disabilities.

Tanaka Kikinzoku Group is cultivating personnel in a planned and systematic manner in accordance with its policies ofusing employee training to build self-awareness and self-reliance, linking education closely to business so that thegrowth of each employee leads to the vitalization of the whole organization. We consider that people represent bothresources and assets of a company.
Various training courses are provided according to our education program, including new employee introductory trainingand "jump-up 35" seminar for new employees and mid-level and experienced workers, management training andquasi-management staﬀ training for managers and distance learning training for all employees. In addition, we organize abasic course on precious metals and a QC and QE course to improve knowledge and skills on precious metals.

Common training
for all departments○ Annual Paid Holidays
While the Act on the Arrangement of Related Acts toPromote Work Style Reform was enforced in April 2019 torequire companies to have their employees take ﬁve or
more annual holidays in a year, we introduced the rule
one year ahead and promoted it across the Group fromﬁscal 2018.

Employment of Persons with Disabilities

Human Resource Development

Engineer cultivation course
Basics of quality
engineering
Basic course on
analysis

2nd year: Introduction to patents
3rd year: Practice on patents, basics of precious metals,
basic education on technology
4th year: Applied patents, basic education on technology
5th year: QC and QE course

・Instruction is given by internal lecturers.
・Patent strategy / professional for commercialization / acquisition of Ph.D. /study abroad, etc.
Monozukuri University

Introductory course, beginner classIntermediate class

Skill transmission classdistance learning, e-learning / acquisition of qualiﬁcations

CSR Tsushin
As an internal communication tool for our CSR
activities, we issue "CSR Tsushin" (CSR daily news) every
day from April 2012. The 1,700th issue was publishedin June 2019. Subjects related to the core issues of ISO
26000, such as organizational governance, humanrights, the environment, labor practice and community
involvement, are covered and the articles are preparedby the staﬀ members of CSR Promotion Department incharge of the respective subjects. CSR Promotion
Department distributes the newsletter to departmentsof the plants and facilities by email every day and thedepartments display it on bulletin boards in worksites,
canteens, etc. In 2018, articles extracted from the backissues were re-edited in one brochure named "Book to
Make Use of CSR Tsushin," which was distributed todepartments so that they canuse it to raise awareness of CSR
activities and for other purposes.
In the future, we will add articles
to update the book for every
500th issue.

CSR Tsushin is displayedin canteens, etc.
Book to Make Useof CSR Tsushin

TANAKA NOW
When eight months passed from the birth of my daughter, I took child care leave forapproximately four months until her ﬁrst birthday. I would like to take this opportunity tothank all of those who understood and supported me when I took the leave on a very
short notice. During the leave, I engaged in daily chores for child care such as changes ofdiapers and preparation of baby food, as well as domestic tasks including cleaning andwashing. I realized the toughness of the housework that my wife does every day. In
addition, I was able to directly see my daughter grow day by day, which was irreplaceable
time for me. I feel that I have become more patient and tolerant through the experienceof child care. I would like to take advantage of such growth for my job in the future.

SHIRAISHI, Koujiro New Business Company, Tanaka Kikinzoku Kogyo K.K.

Development Management Department, Technical Development Supervisory Division,

16

TANAKA CSR REPORT 2019TANAKA CSR REPORT 201917

Continuous Development of TrustLabor Practices

Creation of a Safer Work Environment
Creation of a workplace where employees can work safely with a sense of security
is a challenge that is profound and most important for companies.
Tanaka Kikinzoku Group strives to ensure the safety and health of employees
while focusing on the development of relationships that facilitate mutual cooperation
between them.

GOGO Plan 2020 ˜ Safety ˜"Give top priority to safety, and establish a secure and cheerful workplace

Ideal State we would like to achieve

State we need to achieve

Employees have enhanced their awareness of safety andcan ensure their safety by themselves
FY2015to

FY2017

Employees cooperate with each other to maintain a safe,
secure and cheerful workplace

FY2018toSpeciﬁc Examples of Improvement with Safety Activities○ Hiratsuka Plant, AuAg Company
We implement risk assessment using videos as a priority
safety measure. Managers and operators shoot videos toidentify and assess the risks in dangerous locations, takehardware and software-based measures to address themand prepare a risk assessment (RA) table based on the
results. The videos are played for reporting in themeetings of the safety and health committee. Opinions
and suggestions from the committee members are
adopted to improve the safety of equipment andmachines and clarify the work procedures.

FY2020Having gone through the "State we need to achieve" in ﬁscal 2017 and aiming to be the "Ideal State we would like to achieve" inﬁscal 2020 based on the mid-term business plan "GOGO Plan 2020," we will promote safety management activities under the coresafety policy "Give top priority to safety, and establish a secure and cheerful workplace."
Check of operations based on
the actual goods and places

Safety Activities

After improvement

TANAKA CSR REPORT 2019

Area sensor

Area sensors and emergency stop buttons
have been installed at the locations withthe risk of getting caught such as rollers
and levelers.

○ Saga Plant, Tanaka Denshi Kogyo K.K.,
Semiconductor Company
The part of the wire drawing machine that pays out
wire was dangerous because the feed material SUS
reel was rotating at a high speed. We have attached acover to it and informed the operators of the risk ofgetting caught. The conveyor of the spool washingmachine also had a risk of getting caught so we
attached a cover to the rotating part.
Improvement of the part of the wire drawing machine that pays out wire

Before improvement

After improvement

After improvement

Improvement of the conveyor of the spool washing machine

Before improvement

After improvement

Warning

Warning

While a carriage is moving at the carriage exit in the automatic
warehouse, the alarm goes oﬀ and the warning lamp is on.

After improvement

After improvement○ Ichikawa Plant, Chemical Recovery Company
After improvement

Human detection sensor

Human detection sensor

While fences are installed at the carriage exit, the person inside
the fences had a risk of getting caught. Human detection sensors
have been set to ensure that the carriage stops if a person
enters the area inside the fences.

After improvement

Sulfuric acid was used in the beaker
washing machine. Since it cancause chemical injury, the machine
was improved to wash beakers
without using sulfuric acid.

As the catwalk on the rooftop had
no handrails, which could cause afalling risk, handrails were installed.

TOPICS Japan Industrial Safety and Health Association Chairperson Prize was awarded

Health Activities (Health Management)

18

Emergency stop button○ Iwate Plant, AuAg Company

With the aim of ensuring that "Employees
cooperate with each other to maintain a safe,
secure and cheerful workplace," which is the"Ideal State we would like to achieve" in ﬁscal
2020, our plants and facilities perform safety
activities on a daily basis with the safety managers
playing the main role according to the annual
policy "Give top priority to safety, and establish asecure and cheerful workplace." In ﬁscal 2018,
they took safety measures to address the priority
issues selected for each of the plants andfacilities in consideration of their past accidents.
The priority issues included "getting caught"and "handling of heavy objects" for machineprocessing sections and "chemical and burninjuries" for chemical sections while "preventionof fall" was regarded as a common issue. Hazard
sources were identiﬁed and countermeasures
were designed and implemented based on theactivity plan. The safety managers of the plants
and facilities and the CSR Promotion Department
checked the status of implementation. Thisinitiative will be continuously taken in ﬁscal 2019.

To continue our commitment to the creation of anenvironment where employees can work actively while
maintaining both physical and mental health, we haveissued "Tanaka Kikinzoku Group Health Declaration." Asa measure to prevent diseases, we organize the "healthchallenge" program every year to give employees
an opportunity to be aware of their health and work toReport and examination of the resultsof RA activities at a meeting of
the safety and health committee○ Isehara Plant, PGM Company

improve it. We also encourage them to receive aregular health checkup, which can discover diseases
early, and have achieved the consultation rate of
100%. The "quit smoking" campaign organized in May
every year involves activities to reduce the chances ofpassive smoking in addition to initiatives for the healthof smokers.

TANAKA Holdings received FY2018 Japan Industrial Safety and Health Association
Chairperson Prize from the Japan Industrial Safety and Health Association (JISHA). Thisprize is awarded to the companies, etc. recognized to have produced signiﬁcantresults from eﬀorts to promote and improve industrial safety and occupational healthbased on a deep understanding of the activities of JISHA and have widely contributed
to dissemination and understanding in the relevant region or industry and madeoutstanding achievements.
This time, we received the prize in recognition of remarkable results from our activities
to prevent occupational accidents, such as company-wide comprehensive safety
inspections, with focus on prevention of accidents of getting caught.

Replica of the"Health Statue"
Commendation ceremonyin the National Industrial
Safety and Health Convention
in October 2018

TANAKA CSR REPORT 201919

HumanRightsConsumer Issues

Organizational
GovernanceContinuous Development of Trust

To Be an Honest and Healthy Company

100%

Reply within 24 hours

75%
Derivative Transaction Committee

In ﬁscal 2018, in addition to a drill of the emergency
task force for the departments of Headquarters, we
conducted a drill on the initial response and business
continuity that simulated a large earthquake (BCP drill)at the plants and facilities. For the issues identiﬁed
through the drills, we are making improvements in aplanned manner.

82.4%

25%

20

19

/0

1/

04

18

:1

:4

2

8

4

15
04

1/
/0

19
20

20

19

/0

1/

04

13

11

:2

:0

:3

04

19

/0

1/

1/
/0

20

19
20

0

6

2
:1

04

08

06

19

/0

1/

1/
/0

20

19

04

04

03

01

:4

:2

8

4

0
:0
1/

20

20

19

/0

/0

1/

04

03

23

20
20

19

/0

1/

03

03

18

:3

:1

6

2

0%

/0

Business Continuity Planning (BCP)

95.0%

Reply within 2 hours
from the startof communication

50%

1/

Responsible Business Committee

Risks related to ﬁnancial derivative
products

Risks in transactions with customers,
suppliers, etc.

Conﬁdential Information
Management Committee

Risks of conﬁdential
information leakage

Personal Information
Management Committee

Central Environmental Committee

Risks of personal information leakage

Compliance with laws, codes, etc.
related to the operations

We have established an Whistleblowing system todetect and correct any non-compliance, dishonest
act, etc. at an early stage. When a report is made, theInternal Reporting Committee investigates and examines
the report and if necessary, orders the relevant persons
and departments to take corrective measures. The
whistleblowers are strictly protected to ensure that they
will not suﬀer a disadvantage.

Central Health Committee

Companies/Units(Manufacturing, engineering,sales, management)

Whistleblowing System

Environmental risks

Establishmentof a mechanism
to enhance the system

Risks of health problems

Dailymanagement

Feedback
Identiﬁed
problems

Central Safety Committee

Reporting of
inappropriate
actions, etc.

Guidance

BCP Committee

Internal
ReportingCommittee

CSR &Corporate
Communications
Division
Advice/Lawyers
Consultants
Government
bodiesOther
experts(Kumamoto Earthquake)

Risk Management Committee
Risks of accidents and disasters

TANAKA Holdings Co., Ltd.
President, executives

To enhance the awareness of compliance and prevent
dishonest acts, we launched e-learning courses fordomestic and overseas expatriate staﬀ, as well as local
staﬀ in managerial positions, in October 2018. The
subjects of the courses include the internal reporting
system, compliance with the Antimonopoly Law andprotection of personal information and a total of 380
persons have taken them as of May 2019. We alsoorganize seminars that respond to the speciﬁc risks ofthe countries where the bases of the Tanaka Kikinzoku
Group are located. In ﬁscal 2018, the seminars were
held at our bases in China and Germany.

● Reply rate for the conﬁrmation of safety within 24 hours● Risk Management Structure

Risks of natural disasters, etc.

Compliance Training● Compliance Promotion System Diagram

Reporting/
Proposalof improvement

We have established a counterparty screening system
to mitigate the risks associated with the globalization of ourtransactions. Responsible Business Department, which
was newly set up in CSR & Corporate Communications
Division, strictly screens counterparties to prevent
any involvement in the infringement of human rights,
conﬂicts, corruption, money laundering, funding toterrorists and to avoid transactions with those subject
to sanctions or antisocial forces.

19

Along with legal compliance, we strive to ensure theobservance of social ethics to conduct fair and soundbusiness activities. CSR & Corporate Communications
Division receives reports on compliance-related problems
and external information on compliance in an integrated
manner, takes corrective actions and promotes measures
to prevent recurrence throughout the Group while
receiving advice and guidance from lawyers, consultantsand external experts.

20

Establishment of a Counterparty Screening System

Risk Management Committee is composed of thepresident and division managers of TANAKA Holdings
and holds regular meetings, which are also attended byauditors. At the meetings, the committee evaluatesrisks, checks the status of actions for the risks to beaddressed and determines crucial risks in order toreduce management risks. The crucial risks determinedin the meetings will be addressed by the respective
committees and departments in charge of the individual
risks.

In addition, we periodically conduct a safety
conﬁrmation test to check the safety of all employees
in Japan in a prompt and reliable manner. The system
registration rate of the employees is 100%. The reply
rate within 24 hours from the occurrence exceeded
90% in all cases of Northern Nagano Earthquake in
May 2018, Hokkaido Eastern Iburi Earthquake in
September 2018 and Kumamoto Earthquake inJanuary 2019.

19

Compliance Promotion System

Risk Management Committee

20

In addition to legal compliance, we continuously promote Group-wide initiatives
to develop business activities that are correct in accordance with social ethics
on a global scale.

Corporate GovernanceTanaka Kikinzoku Group aims to realize healthy andtransparent business management by enhancing themanagement monitoring mechanism and to always beeﬃcient and competitive companies.
We have also established a corporate governancesystem and speciﬁed basic policy for internal control toensure respect for the rights and interests of all
stakeholders and business operations, accounting andother activities in a legitimate and proper manner.
Based on the system and basic policy, the Board of
Directors, Group Management Committee, the Board
of Auditors and Internal Auditing Department play theirrespective roles.
● Governance Structure Diagram

BCP drill at Tomioka Plant of Tanaka Kikinzoku Kogyo K.K.

TANAKA NOW
Responsible Business Department was set up in April 2018 to respond to international
guidance on CSR and avoid sanctions by countries in association with the globalization of
our transactions.
We have introduced a counterparty screening system and work to disseminate it in thecompany to ensure that Tanaka Kikinzoku Group companies would not be involved in theinfringement of human rights, conﬂict minerals, money laundering, funding to terrorists orother issues.
In addition, we strive to keep trust from customers through the maintenance of certiﬁcates,
such as those from LBMA and LPPM, and RBA and other CSR audits and surveys requested
by customers.

FUKUSHIMA, Atsushi CSR & Corporate Communications Division, TANAKA Holdings Co., Ltd.
Manager, Responsible Business Department,

20

TANAKA CSR REPORT 2019

General Shareholders Meeting
Appointment/
Dismissal

Board ofDirectors
Group
Management
Committee

BCP drill at Hukou Plant of Taiwan Tanaka Kikinzoku Kogyo Co., Ltd.

Audit

Appointment/
Dismissal

Board ofAuditors

Coordination

Coordination

Internal Auditing
Department

Appointment/
Dismissal

Independent
Accounting
Auditor

Coordination

Group companies
Industrial companies/Cross-functional companies
TANAKA CSR REPORT 201921

Continuous Development of TrustContinuous Development of Trust

CSR Performance

CSR Management
Approach to CSR
We aim to perform activities to fulﬁll corporate social responsibility (CSR) not as something isolated from daily
operations but as part of our business activities. In addition, the basic approach to all stakeholders mentioned in
the Mission Statement has underpinned our CSR activities consistently since our early days. For example, we havecontinued the recycling of bullion (see P12-13) as part of our daily activities since our founding, which is symbolized
by the slogan "Any bullion is Money," and it is a typical initiative to reduce environmental impact. We continuously
promote activities to incorporate CSR into our daily business operations through community involvement, which isrepresented by social contribution activities (see P14-15), as well as activities to conserve biodiversity in theenvironment (see P13) and other initiatives.
Mission Statement

Having spent more than 130 years in business since its foundation, we set our basic approach to all corporate activities, including
those for corporate social responsibility (CSR), in addition to the improvement of quality, productivity and technology, in the Mission
Statement.

Corporate Philosophy
and Code of Conduct

The Corporate Philosophy states that we will lead the precious metals industry, implement various business continuity activities
including the conservation of the global environment and work for the creation of a prosperous society based on the basic approachmentioned in the Mission Statement. For the realization of the Corporate Philosophy, we specify ﬁve basic stances on actions thatshould be considered in daily activities as Code of Conduct, along with the Mission Statement.

Code of Conduct andStandards of Conduct

We describe the principles of corporate activities to fulﬁll social responsibility and contribute to the creation of a sustainable society
in our daily activities in the Code of Conduct and the Standards of Conduct. They have been set in accordance with the seven core
subjects of ISO 26000 and based on respect for internationally recognized standards in addition to compliance with domestic laws.
We have also established a proper management system to control compliance with the Standards of Conduct.

Tanaka Kikinzoku Group Code of Conduct
Organizational governance
Human rights
Work practices
Environment
Fair business practices
Consumer issues
Community participation andcommunity development

Promote sound business practices with transparency and accountability.
Eliminate all forms of discrimination, whether on the basis of race, nationality, sex, age, social status, position or responsibilities, etc.
Endeavor to do the best work and prioritize safety in a free and open-minded corporate culture.
Promote environmental protection and contribute to the future of this beautiful planet.
Promote sound business activities in the spirit of legal compliance.
Respond to the trust and expectations of customers, and generate excitement for them.
Aim for a well-balanced and prosperous society, and contribute to the revitalization of local communities.

Human rights

Work practices

Environment

Fair businesspractices

ConsumerissuesCommunity
participation andcommunity
development

22

TANAKA CSR REPORT 2019

No. of employees(persons)

3,000

No. of managers(persons)

600

2,774

2,767

2,755

2,500

530

500

2,000

825

831

1,500

Female

522

539

68

70

72

400

837

Male

1,000

0

1,924

1,942

1,937

2016

2017

2018

0

458

454

469

2016

2017

2018

Number of employees who used child care leaveand other systems (in Japan)

Male

Reduced work hoursfor child care(persons)

80

80

60

60

20
0

40

63

41

55

3

3

5

2017

2016

70

61

60

44

40

1)Do not behave in any way that discriminates on the basis of nationality, race, ethnicity, skin color, sex, age, religion, beliefs, social status, ancestry, property,
existence of physical or mental disabilities or political views.
2)Do not use any child labor or forced labor.
3)Provide an appropriate work environment for young workers.
4)Appropriately manage working hours and payment of wages.
5)Do not mistreat or unjustly coerce someone using your position in work or in sales (i.e., power harassment) through harassment, disdain or words.
6)Do not engage in any speech or conduct related to sex in opposition to the feelings of those around you or the person you are speaking with (i.e., sexual harassment).
7)Do not slander or denigrate any company or individual.
1)Prioritize respect for human life, and comply with laws and ordinances related to occupational safety and health.
2)Understand the importance of systematic and continuous activities related to health and safety, and actively take part in driving these activities.
3)Understand the dangers and mental and physical hazards related to your own work, prepare for emergencies and implement training,and strive to take measures for disaster and accident prevention.
4)Respect the right of employees to participate in collective bargaining and rallies.
5)Provide appropriate employee beneﬁts.
1)Comply with environmental regulations, regional agreements and in-house rules.
2)Promote the thorough control and reduction of chemical substances that may have a harmful impact on the environment.
3)Promote the conservation of energy and resources, and the reduction of CO₂ emissions and waste materials.
4)Promote appropriate management of water resources.
5)Actively work to recycle precious metals.

61

FY

69

0

2014

77

1)Comply with all laws and ordinances applicable to products, merchandise and services.
2)Do not violate laws and ordinances such as competition laws or those related to labeling.
3)Protect the personal information obtained from customers, business partners, employees and others.
4)In advertisements and other publicity, create labeling based on a substantial and objective foundation; do not engage in false or misleading advertising.
5)Ensure product safety and product quality.
6)Provide information related to the correct methods of use, cautions in use and application, and information related to such features as the functions
and strengths of products, merchandise and services.
7)Along with disclosing business information and increasing the transparency of management, achieve accountability for the company.
8)Undertake honest sales and service activities.
9)Do not make sales with excessive premiums or use deceptive sales methods.
10)In the event that a quality problem that can harm the company's reputation arises, respond appropriately.
11)For enquiries and complaints from the customer, follow in-house rules and guidelines to deal with the situation,
give appropriate feedback and prevent recurrence of the problem.
12)Actively work to reduce material use to a minimum, make use of reclaimed materials and develop products, merchandise and services that save energy.
Provide support for activities contributing to society through such work as academic research, education, environmental protection,
cultural and artistic activities, and local community service, and work to foster harmony and co-exist with local communities.

Established: November 1, 2008
Revised: October 1, 201642.4 41.6

42.3 42.3

2015

2016

2017

2018

1.70

1.80

1.86

2016

2017

1.52%

1.68

1

20

2018

1

0

0

FY

2017

2016

3

2018

FY

0

2014

2015

2018

FY

Industrial waste emissions（tons/year）

40,0008,000

35,0006,000

30,000

5,598
4,339

4,000

35,28025,000FY

Ratio of employees with disabilities (in Japan)
274

CO₂ emissions

35,86937,08737,824

4,028

4,165

3,714

38,3422,000

20,000
0

2014

2015

2016

2017

2018

0

FY

The CO₂ emission factor of TEPCO Energy Partner, Incorporated in FY2017(0.462 kg-CO₂/kWh) is retroactively applied to the calculation of CO₂ emissions
from power consumption for all ﬁscal years.

40

23（2） 24（3）
16（4）

2015

2016

2017

2018

FY

Traﬃc accidents(the number in parentheses is the number of accidents during
driving to or from work or personal time)(the number in parentheses is the number of accidents
involving an absence from work of four days or more)

30

2014

Number of traﬃc accidents

Occupational accidents（cases）

20

42.0 41.0（％）

Number of occupational accidents

1)Comply with laws and ordinances to maintain anti-monopoly laws and other fair competition rules, and compete fairly and freely.
2)For gifts of money and goods, business entertainment, donations and political contributions, behave appropriately and comply with laws, ordinances and in-house rules.
3)Do not commit bribery, corruption, extortion or embezzlement.
4)For the import and export of goods and technologies, comply with international treaties, laws, ordinances and in-house rules and follow the appropriate
and necessary procedures.
5)Do not use a dominant position to engage in such behavior as unilaterally changing the terms of business or forcing a purchase.
6)Respect intellectual property rights and do not infringe on them.
7)Have absolutely no dealings with anyone with connections to antisocial groups or armed groups.
8)Contribute to establishing a relationship of mutual cooperation and trust with other businesses.
9)Along with following company rules regarding trade secrets, and controlling and protecting them, do not leak or disclose trade secrets to others or use without permission.
10)Do not behave in any way that is problematic in terms of business ethics, or act or conduct yourself individually in opposition to the proﬁts of the company.
11)Appropriately control company assets (information, products, merchandise, equipment, machinery, consumables, intellectual property,
tangible and intangible assets such as the brand) and do not use these assets illegally or unfairly.
12)Do not conduct insider trading based on nonpublic information acquired through the course of business.
13)Implement a whistleblowing system to help prevent compliance violations and protect whistleblowers against disadvantage.

40.0

Female42.3 42.7

10

FemaleChild care leave (persons)

66

43.0

20

100
FY

50

30

200

500

Male

(y. o.)

40

300（tons/year）

Tanaka Kikinzoku Group Standards of Conduct

Average age (in Japan)

Number of executives, employees and managers (in Japan)

18（2）（cases）

80
70

72（71）

59（56） 59（56）55（53） 54（52）

60

23（3）

50
40
30

10

20
10

0

2014

2015

2016

2017

2018

FY

39

62

40

45

FY2014FY2015FY2016FY2017FY2018

2014

2015

2016

2017

2018

FY

Number of participants in sports for people with disabilities* real number (watching and cheering, volunteer activities)

Number of the new patents registered in Japan

31

0

The ﬁgure in the parentheses is the total cumulative number.

33

FY

人
（54人）

2016

Tohoku Reconstruction Volunteer Program - the numberof the planted cherry blossom trees (cumulative number)

30

60

84

107

127

135

FY2013

FY2014FY2015FY2016FY2017FY201898人（300人）

2017
2018
0

20

40

60

80

100

120

140

151

人
（474人）160

TANAKA CSR REPORT 201923

Continuous Development of TrustContinuous Development of Trust

Third-party Assurance of CSR Performance
Results of the Questionnaire Survey for CSR Report 2018
Third-party
Assurance

Third-party Opinion
ProﬁleMr. Shimizu graduated from College of Economics, Yokohama National University. After working at Japan Management
Association, he was a professor at Faculty of International Communication and College of Business Administration,
Shukutoku University, and established CCI Research Institute in 2014.
His specialties are environmental / CSR communication and public relations management. His major books are "InternalCommunication Management", Management Learning from Eiichi Shibusawa Based on The Analects and The Abacus ,Environmental Communication , CSR Management: Coexistence with Stakeholders and Corporate Social Responsibility","Environmental Communication", "CC Theory and practice of strategy, " CSR Initiative: CSR Management Philosophy, Charterof Conduct, Recommended Model of Conduct " and many others.
Visiting Professor of Tsukuba Gakuin University, Representative of CCI Research Institute, director and"Management Communication Study Group" department chairperson of the Japan Society for Corporate
Communication Studies, examiner of KEIDANREN Internal Media Awards

SHIMIZU, MasamichiFirstly, I would like to say that something will change in TANAKA and I am looking forward to its future. I haveexchanged opinions with staﬀ every year and visited the main plants. I ﬁnd new things every year. Here, I would liketo particularly point out two issues. One is that I was able to take a brief look at the wonderful corporate culturethat has been kept inside. The other is that eﬀorts are made to show the eﬀective use of precious metals on a
global scale and conservation of biodiversity on a local scale at the same time.

The Corporate Culture Based on "Any Bullion is Money," Which Will Lead to the Future
I noticed it in a meeting room of Saga Plant, Tanaka
Denshi Kogyo K.K. I heard that the phrase "Any Bullion
is money" was frequently said in the production sitesof TANAKA. I considered that the comments I heard
in the sites like "There is no waste in our plant" and"Everything is recovered and reborn" are images related
to not only the operations in clean rooms but also
the future society.
During my visits to TANAKA's plants, I repeatedly
thought that it would be diﬃcult to clearly explain
something I can understand intuitionally in words orimages alone. In this context, even if there is no direct

Results of the Questionnaire on CSR Report 2018
Response rate among employees in Japan

Number of the answer sheets collected（%）（sheets）

100

76

80
60

72

70

77

2,500

83

63

1,500

49

40

1,000

20

500

0

2012

2013

2014

How did you feel about
the report?

2015

2016

2017

2018

2,065

2,000

FY

0

1,947

1,895

2014

2015

2,114

1,449

2012

2013

2016

2017

2018

FY

Understandability

Easy tounderstand43%

Average

55%

Diﬃcult tounderstand2%

Content

Rich

44%

Average55%

Insuﬃcient

1%

Information volume

Appropriate

83%

Too much 15%

Too small

2%

DesignGood

50%

Average48%

Not good2%

Reﬂection of the Responses to the Questionnairein the Previous Fiscal YearThe responses to the questionnaire survey included opinions and requests suchthat "There were not many speciﬁc examples of safety measures," "All data in the
CSR Performance page should be presented in graphs showing the annual trend"and "More research and development activities should be introduced" and they
were reﬂected on this report. We will continue to improve the CSR Report byreference to your opinions.

For any job, the actual situation of diverse corporate
activities cannot be understood even by employees in
the next line unless it is visualized in society. Especiallyin business activities like those of TANAKA, it isnecessary to develop appropriate indicators due to thehigh degree of specialization. This is applicable to "CSR
Performance." It will be even more persuasive if thedesign is further improved. This is also same with
non-business activities such as sports and contribution
to local communities and society because theimpression can signiﬁcantly change depending on thelevel of attitude and behavior.
For reference sake, I would like to mention that I haveconducted joint research with researchers for several
years in order to examine how to communicate andshare concepts involving feelings such as dreams andhopes and make others act with the recognition thatthe concepts are also their own. Through interviews
with top management, executives, etc. of 50
companies, I learned that it is important for anyone toshow their attitude and behavior in addition to words
and that the continuance of such communication
without getting tired of it is essential to express andshare feelings.
The feature articles in P12-13 visually express this toenhance the interest of readers. Whether resources arerecycled or abandoned to cause environmental
pollution, it is a result of the ideas and actions ofpeople. The articles represent it eﬀectively.

One Way to Achieve Dreams and Targets Is to Continue to Make Small Eﬀorts

We explain the content of the CSR Report to employees in Japan during
mandatory afternoon assemblies and other occasions every year. The response
rate for the questionnaire survey reached a record high of 83% in ﬁscal 2018. We
will continuously work to inform employees of the CSR Report and improve theirunderstanding through the brieﬁng sessions.

TANAKA CSR REPORT 2019

From Visualization to Sharing of Attitude and Behavior

1,725

Brieﬁng Sessions on the CSR Report

24

2,288

explanation, the description of facts in the previous
ﬁscal year, such as the award for Tomioka Plant in theGrand Prize for Excellence in Energy Eﬃciency andConservation and the Japan Industrial Safety and
Health Association Chairperson Prize, as well as thecertiﬁcation from Japanese and international specialized
agencies in CSR assessment including the RBA Codeof Conduct and EcoVadis, is eﬀective because it will
externally communicate the actual feeling that can berealized only inside the company in the forms of speciﬁcviews and opinions.

Brieﬁng Session on the CSR Reportat TANAKA Holdings Co., Ltd.

I think that such a persistent approach will lead to the"Exploration of Various Possibilities" in TANAKA. This
has already been producing tangible results such as
ﬂexible touch panels, fuel cells and items for surgery andtreatment, as well as the publication of the 1,700th
issue of CSR Tsushin.
CSR Tsushin is a sort of wall newspaper prepared in one
sheet every day. It presents the knowledge of CSR andreports on the activities of facilities in a way to ensurethat the content can be understood just by viewing the
sheet displayed in the company. This initiative is praisedand envied by CSR staﬀ in other companies. Even if it isa small step, the continuation of it will produce resultsthat cannot be imitated by anyone.
Today, along with the digital revolution, the "material
revolution" is underway. With the demand for the useof precious metals in new ways, their needs will befurther enhanced. While Mr. Tanae, President claims"productivity improvement based on the safety-ﬁrst
principle" at the beginning of this report, I wonder thata shortcut to reach the "Ideal State we would like toachieve" in 2020 is to continuously make small eﬀorts,
although this may sound paradoxical.
I would be happy if this report helps ﬁnd a shortcut tothe future.

TANAKA CSR REPORT 201925