CSR Report
2017

PlatinumGold

SilverPalladium

Rhodium

Iridium

Ruthenium

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

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.

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

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.

Without silver, photographs
would not have been invented.
Found all around, including yourmirrors.

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

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

Useful in biotechnology andforensic sciences.

-060002
A-（2）Printed on environmentally friendly
FSC-certiﬁed paper using wood fromproperly managed forests

Printed on paper made with wood fromforest thinning.
Morino Chonai-Kai (Forest Neighborhood
Association)--Supporting sound forest
management.

The TANAKA Groupsupports an initiative
to preserve forests bypromoting the use ofdomestic timber.

This report is printed using
vegetable oil ink.

Printed by waterlessprinting method, which
produces no hazardous
waste liquid.

This report uses a
Universal Design (UD)font which is easy toread.

Corporate Philosophy and Code of Conduct

Editorial
PolicyCorporate Philosophy
The TANAKA group:
A 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,As well as to the future of the planet through sustainable use of precious metals.

Code of Conduct

Period

1. Greet Everyone
2. Show your Smile
3. Give thanks

Scope

4. Maintain Safety
5. Challenge Yourself

TANAKA CSR REPORT 2017

April 1, 2016 to March 31, 2017
In order to provide a general view of activities undereach topic covered in the report, some contents may
represent activities taken outside this period.
TANAKA Holdings Co., Ltd. and consolidated subsidiaries.
(Metalor Technologies International SA is excluded).
Indications are made in areas of the report where thescope diﬀers.

Publication

July 2017

Reference
guidelines

Japanese Standards Association, ISO 26000:2010

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

Publisher

TANAKA is accredited as a Good Delivery Referee for gold and silver by The London Bullion
Market Association (LBMA), and also appointed as a Good Delivery Referee by London Platinum& Palladium Market (LPPM). In both cases, TANAKA is one of the only ﬁve Good Delivery Referees
in the world (and the only one in Japan), which are responsible for assessing Precious metals
melting technologies and analytical skills of all accredited gold and silver reﬁners.

Tanaka Kikinzoku Group publishes its CSR Report inorder to enhance communication with stakeholders by
informing them of the Group s corporate social
responsibility (CSR) initiatives that aim to contribute to
the realization of a prosperous society and a beautiful
future for the Earth supported by precious metals.
This year s report inherits the design concept of gift,which was newly adopted for the 2013 edition, andhas been edited to ensure that the content is easy toread and understand. In ﬁscal 2016, we classiﬁed thecontents into the three major categories of "Values
Created by TANAKA," "Business Activities Based onSocial Responsibility" and "Free, Vigorous and Honest
Corporate Culture," and attempted to present themwith focus on their relationships to corporate activities.
We would be honored to receive feedback from ourstakeholders. Your comments and opinions will be used
to improve Tanaka Kikinzoku Group s future initiatives.

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

00 Introduction
02 Message from the President
04 About the Tanaka Kikinzoku Group
Values Created by TANAKA

06 Delivery of New Values to Society
08 Research and Development
Business Activities Based onSocial Responsibility

10 Quality of TANAKA
Protection of

12 the Global Environment
Contribution to Local Communities

14 and Society

Free, Vigorous andHonest Corporate Culture
Creation of

16 a Safer Work Environment
Active Role of Each Employee

18 Compliance

Risk Management

20 Foundation of CSR andBusiness Management
CSR Performance

22 Third-party Assurance
24

Third-party Opinion
Response fromthe Tanaka Kikinzoku GroupISO 26000 Comparison Table

TANAKA CSR REPORT 201701

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

Message from the President

Promoting CSR activities that support our
growth to become the ideal state we would
like to achieve in 2020"

Widely and strongly... We will accumulate more CSR activities to make steady growthand development together with all stakeholders.
Start of the new Tanaka Kikinzoku Group
that promotes global business development
In ﬁscal 2016, which was the second year for the GOGO
Plan 2020, a medium-term management plan of Tanaka
Kikinzoku Group, we made concerted eﬀorts to establish
the in-house company system, which was introduced inﬁscal 2015, and started to achieve the results of theeﬀorts gradually. This in-house company system is acore system of the business management in ourcommitment to achieving the "ideal state we would liketo achieve" set in the GOGO Plan 2020, and we willfurther evolve it in the future.
Our highlight during ﬁscal 2016 was the acquisition of
100% of the outstanding shares of Metalor Technologies
International SA ("Metalor"), a peer company based in
Switzerland and expanding on a global scale. Some ofMetalor's business activities overlap with those of ourGroup, such as recovery and reﬁning, plating solution
and electrical contacts. The business approach that
focuses on precious metals as management resources,
as well as the corporate climate that treats employees
well and lets them work freely and vigorously, is very
similar to our Group. As a result of this acquisition, we
have got like-minded colleagues, and the synergetic
eﬀect will give us a great opportunity to dramaticallypromote the global development of the business of the"new" Tanaka Kikinzoku Group.

02

TANAKA CSR REPORT 2017

On the other hand, cooperation with Metalor, which is
widely expanding worldwide, requires us to further
enhance risk management and corporate governance in
a comprehensive manner. We would like to promote
the management and operation of the new Tanaka
Kikinzoku Group through mutual cooperation of the top
management and various exchanges of employees
between the two companies.

Aiming to further enhancerisk management and compliance
The activities of the Risk Management Committee, which
was established for risk management of our Group as awhole, were in their second year, too. The operation has
also been getting on track, and the committee identiﬁed
and addressed various risks related to natural disasters,
customer transactions, compliance, etc. last year.
As a measure to address natural disaster risks, we
conducted a drill of the emergency task force of the
Headquarters in preparation for a major earthquake
hitting the Tokyo area in the last ﬁscal year. All division
managers of TANAKA Holdings Co., Ltd. and I, who aremembers of the emergency task force, participated inthis drill and directly learned what response andinstruction should be given in an emergency situation,such as liaison and cooperation with relevant divisions.
We learned various lessons through the drill, and theCurrent
situation

State we needto achieve

FY2016FY2017

results will be reﬂected on the BCP in the future. In ﬁscal
2017, we plan to promote the review of the BCP of our
production bases, which is still in progress, to further
improve it and ensure that we can fulﬁll responsibility tosupply products to customers. The training for BCP,
along with the improvement activities, will be continued
in the future.
Another important risk countermeasure is protection of
personal information. Corporate scandals due to leakageof personal information have recently attracted muchattention while "My Number Act" was newly enforced
in January 2016 and the Act on the Protection of
Personal Information was amended in May 2017. We
have to consider leakage of personal information to bea crucial corporate risk. Tanaka Kikinzoku Group receives
personal information from customers in all of its businessﬁelds, namely industrial products, assets and jewelry,and has therefore taken measures to ensure theprotection of personal information for a long time. We
revised the policies and rules relating to managementof personal information in ﬁscal 2015 to strengthen
the management throughout the Group. Tanaka
Kikinzoku Jewelry K.K. and Precious Metals Retail
Department of Tanaka Kikinzoku Kogyo K.K. obtained
ISO 27001 certiﬁcation for the protection of personal
information of customers while Personnel and GeneralAﬀairs Department thoroughly control the individual
number (for the social security and tax number system
in Japan, nicknamed "my number") of each employee. In
ﬁscal 2016, to implement PDCA of personal information
management in the whole Group, we divided personal
information into the three categories of "personal
information of individual customers," "personal informationof corporate customers" and "personal information of
employees, etc." and appointed the director of thedepartment that controls each type of the information
as the supervisor. We also established a personal
information management committee composed of those
supervisors. While this committee will take the initiativein our personal information management from now on,
we will enhance the management even more.
In addition, we reviewed Tanaka Kikinzoku Group
Action Rules to further promote activities for CSR
procurement including response to EICC.
Since these initiatives for risk management andcompliance are essential for corporate sustainability,

Ideal Statewe would liketo achieve

FY2020we will continue to surely monitor them under the
initiative of the Risk Management Committee.

Start of new social contribution activities
toward the year 2020
Lastly, our Group has conventionally regarded social
contribution activities as part of our signiﬁcantactivities. Our activities for "practice of sports" and"support of sports for the disabled" have recently
gained recognition of the Tokyo Metropolitan
Government, and we were selected as a modelcompany in the promotion of sports in Tokyo again
in 2016, for two consecutive years from 2015. We also
set up Oﬃce for Promotion of Sports for the Disabled inCommunications and Advertising Department in November
2016 to enhance our system to support sports for people
with disabilities, and decided to co-sponsor the Japan Blind
Football Association from April 2017 as a prompt initiative.
Toward the year 2020, we will promote activities to support
sports for people with disabilities (by knowing , watchingand supporting them) in and outside the company.
We also supported victims of natural disasters actively
in ﬁscal 2016. For the victims of the Kumamoto
Earthquake in April 2016, we made monetary donation
to Kumamoto Prefecture in hope of quick recovery of
the aﬀected area. In addition, as part of our activities
to assist rehabilitation of the Tohoku Region, we
continuously plant cherry blossom trees in the furthest
inland areas hit by the tsunami under the theme of"inheritance of memories," using the money raised in thecompany, from ﬁscal 2013. We will continue to further
promote the social contribution activities of our Group.
While the overseas expansion of Tanaka Kikinzoku
Group will be accelerated with the acquisition ofMetalor, we will keep promoting CSR activities in a way
to receive empathy from all stakeholders including
customers around the world as well as suppliers andlocal residents. I would be happy if you read this report,
obtain an image of how Tanaka Kikinzoku Group is
promoting CSR activities on a global scale and lookforward to our future activities.
Akira TANAE
President & CEO,TANAKA Holdings Co., Ltd.

TANAKA CSR REPORT 201703

About the Tanaka Kikinzoku Group

Businesses and Main Products of the Tanaka Kikinzoku Group
Industrial Products
We pursue the full potential of precious metals as products that underpin industrial development. In
recent years, we have focused on medicine, environment and energy, which are increasingly
important sectors on a global scale.
● Au and Ag related business● Chemical recovery business● PGM-related business● Bonding wire business● Plating process businessElectrical contacts

Recovery of precious metals

Domestic bases

AssetsTANAKA Holdings Co., Ltd.（THD）

Tanaka Kikinzoku Jewelry K.K.（TKJ）

Precious metals can be used as assets. We produce and sell gold andplatinum bullion and coins with reliable quality while also oﬀering
accumulation plans.

●

Headquarters (Tokyo)

Store: GINZA TANAKA
Main Store (Ginza) Shinjuku StoreStore at Hotel Chinzanso Tokyo Isetan Tachikawa
Yokohama-Motomachi Store Sendai Store
Niigata Mitsukoshi Nagoya Store
Bridal Sakae Store Nagoya Mitsukoshi Sakae
Shinsaibashi Store Takamatsu Mitsukoshi
Fukuoka Nishitetsu Grand Hotel Store● Bullion ● Coins●● Accumulation plans●

Tanaka Kikinzoku Kogyo K.K.（TKK）
Gold for assets●●

Jewelry●

Jewelry shines brightly in various scenes of life. We oﬀer jewelry withreliable quality that is worth treasuring for a long time.

●

●

●

● Jewelry ● Artifacts●● Commemorative objects and gifts● Purchase and recycling

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
Shiga Sales Oﬃce
●

●

●

●

●

●

●

●

●

Tanaka Denshi Kogyo K.K.（TD）

Platinum marriage rings●●

Saga Production Headquarters
Shonan Satellite Plant

●

●

●

●

●

●

●

●

●

●

●

●

●

Nippon PGM Co., Ltd.（PGM）●

Headquarters (Tokyo)●

Kosaka Plant

Electroplating Engineers of Japan, Limited（EEJA）
Tokyo Headquarters●

Headquarters (Tokyo)●

Hiratsuka Oﬃce

Overseas bases

Financial Results of the Tanaka Kikinzoku Group

Tanaka Kikinzoku Kogyo K.K.（TKK）●●■ Financial results overview
FY2015

million yen

Year-on-yearchangeFY2016

1,026,707 1,064,259

Net sales
Income before
income taxes
Net income
attributable toowners of parent
Total assets
Capital adequacy
ratio

103.7％

8,801

6,128

69.6％

5,030

3,690

73.4％

422,205

581,304

137.7％

43.8％

33.4％

ー

●

Net sales●(100 million yen)
12,00010,000
8,000

8,393

●
●

2012

Total assets(100 million yen)

120

6,000

75

80

5,000
4,000

50

60
40

2014

2015

2016

FY

2013

2014

2015

2016

FY

0

TANAKA CSR REPORT 2017

●

●

●

●

3,989

4,545

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）

Metalor Technologies International SA

EEJA（Shanghai）
Co.,Ltd.

Tanaka Kikinzoku Kogyo K.K. completed the acquisitionof all of the outstanding shares of Metalor Technologies
International SA, which is based in Switzerland anddevelops precious metal plating, electric contact andrecovery and reﬁning businesses,
on September 27, 2016.

4,222

Nippon PGM Co., Ltd.（PGM）●

NIPPON PGM AMERICA, Inc.

●NIPPON PGM EUROPE S.R.O.

CDGM Tanaka Environmental Catalyst Co., Ltd.（CGTEC）
2012

2013

2014

2015

2016

FY

Chengdu Guangming Paite Precious Metal Co., Ltd.（GMPT）(Data as of June 30, 2017)

04

●

●

Heesung Metal Ltd.（HEESUNG）

5,813

1,000

2012

●

●

2,000

20
0

4,015

2013

3,000

37

●

●

Tanaka Denshi Kogyo K.K.（TD）

2,000
0

89

●

4,000

Net income attributable to owners of parent

100

8,564

●

6,000

(100 million yen)

103

9,677

●

10,267 10,643

Taiwan Tanaka Kikinzoku Kogyo Co., Ltd. Tanaka Kikinzoku (Hangzhou) Co., Ltd.
Tanaka Kikinzoku (Ningbo) Co., Ltd. Seoul Branch Hong Kong Branch Taipei Branch Kaohsiung Sales Oﬃce
Manila Branch Tanaka Kikinzoku International (Shanghai) Co., Ltd. Head Oﬃce (Shanghai) Shenzhen Branch
Tanaka Kikinzoku International (America) Inc. Head Oﬃce (Chicago) San Jose Branch
Tanaka Kikinzoku International (Thailand) Co., Ltd. Tanaka Kikinzoku International (Europe) GmbH
Tanaka Kikinzoku International Malaysia Sdn. Bhd. Tanaka Kikinzoku International (Singapore) Pte., Ltd.
TANAKA America, Inc.

With the attendance of Mr. Philippe Royer,
Metalor CEO, the ﬁrst board of directors'
meeting as a member of the Tanaka Kikinzoku
Group was held in December 2016.

TANAKA CSR REPORT 201705

ValuesCreatedby TANAKA

Delivery of New Values to Society
In its history of 131 years since the foundation, Tanaka Kikinzoku Group has grown
and continuously delivered special values to customers, as well as to society as a whole.
While pursuing the potential of precious metals, we will continue to expand the "depth"and "range" of the values to be created for the world.

Industrial products

Industrial
Manager of Business Strategy Division
Senior Managing Director andCorporate Oﬃcer
TANAKA Holdings Co., Ltd.
Vice President and Corporate Oﬃcer
Tanaka Kikinzoku Kogyo K.K.

TANAKA Koichiro
Supporting the foundation of society andencouraging the shift to a sustainable society
We supply products to customers in a very wide variety
of ﬁelds ranging from semiconductors and electronicparts to medicine and food. We are proud that weunderpin the industry in general and the foundation ofsociety through supply of precious metal materials as
an "unsung hero" and we feel rewarded by it.
For such areas as solar batteries, fuel cells and electricvehicles, which are also symbols of the shift to asustainable society, we provide "parts in which electricalcurrent ﬂows," including electrodes, electric wires andcontacts. Catalysts used for treatment of exhaust gas
from cars are included in our key products as well. We
develop products with higher performance and higher
quality and deliver them in a stable manner so that
our customers can surely improve the performanceand safety of their ﬁnal products and our products
help solve resource and energy problems and global

environmental issues. With this in mind, we are making
eﬀorts every day.
We recover the precious metals used in products asrare resources to the extent possible and recycle themas raw materials for products. Precious metals arecontained in an enormous number of products used inmodern society, and it is a major social challenge tomake eﬀective use of such precious metals, which are
expressed as "urban mine." Backed by our technicalcapacity, total solutions oﬀered by TANAKA are also
handling this issue.
While constantly paying attention to society, we aretrying to create products that please customers.
We believe that an accumulation of such work will
eventually contribute to the establishment of "aprosperous society" and to "the future of the planet,"
which are goals mentioned in our corporate philosophy.

A

Assets and Jewelry

ssets
Jewelry

Manager of Precious Metals Division
Director and Corporate Oﬃcer
TANAKA Holdings Co., Ltd.

President and Corporate Oﬃcer
Tanaka Kikinzoku Jewelry K.K.

TANAKA Masakazu
Accumulation of jobs that "realize credit"
in a careful manner
A feature of TANAKA's products for assets and jewelry,in contrast with the industrial products, is that they
are easily recognizable. Their value is also mostly
understandable in an intuitive manner. For this reason
alone, our daily attitude is even more signiﬁcant.
Products for assets, such as gold and platinum bullion,
have stable value as real assets and can therefore
dependable in an emergency situation. Accordingly,
they can give a sense of security to people in thepresent day, who tend to feel worried about the
future. TANAKA has established and maintained ahigh reputation as a Good Delivery Referee for gold,
silver, platinum and palladium. We continuously
deliver high-quality and socially valuable products
to customers.
With respect to jewelry, we have placed importanceto not only producing quality products but also making

them amusing and exciting. Moreover, we are making
best eﬀorts to ensure that we can oﬀer our productswith conﬁdence, including guarantee that the place oforigin of rough diamond has no social problems. The
products that have been loved and ended their lifetime
are then recycled to give them new life. We begin
production of each jewelry item by imagining what
feeling customers would have on it, which also
motivates our eﬀorts.
These values are based on our consistent attitude to"do simple things in a proper manner." With a sense oftension that comes from an idea that "the attitude tonever disappoint customers is reﬂected on products
and customer services," we would like to perform eachjob carefully and accumulate such jobs to realize
credit.

Prosperity
Environmental
Conservation

Fun

ValuesCreatedby TANAKA

HealthSecurity
Safety /Trust

06

TANAKA CSR REPORT 2017

Precious metals recycling system [RE: TANAKA]
This is a precious metals jewelry recycling system of Tanaka
Kikinzoku, which was launched with "security and trust" as the
keyword. We appraise precious metals with dedicated testing
equipment and purchase them at a proper price set uniformly
throughout Japan based on the bullion price. The purchased
jewelry will be reﬁned and then reused for industrial products, etc.

TANAKA CSR REPORT 201707

ValuesCreated by
TANAKA
Creation and Protection of Intellectual Property Rights
Being aware that intellectual property rights such as
patent rights, utility model rights, trademark rights,
design rights and copyright, as well as know-how, areimportant assets for companies, we actively endeavor
to develop such rights.
In the research of new technology and the development,

production and sales of products and goods, we
respect the intellectual property rights of third parties
and avoid intentional infringement of them. We also
deal with any infringement activities of other companies
on our rights in a strict manner in accordance with therelevant laws of each country.

Some of the Patents Acquired in FY2016

Research and Development

Consumer Issues

Fair Operating
Practices

For Tanaka Kikinzoku Group, research and development is a source of value creation.
We will pursue the potential of precious metals with a broad perspective to open the door to a more
prosperous society as well as a beautiful future of the Earth in a steady and continuous manner.

Development of a reagent for the detection of Zika virus
We developed the world's ﬁrst reagent for directly
detecting Zika virus in bloods based on the
immunochromatography method. This reagent can
detect Zika virus quickly in a short period of 10 to 15
minutes to realize a simpler and less time and money
consuming detection procedure in comparison withconventional ones.
Behind the development of this detection reagent, Zika
virus has continuously been epidemic mainly in Brazil
since 2015. When infected with the virus, the patient
suﬀers Zika fever, which is associated with fever,conjunctival congestion and other symptoms. It has
been required to develop a reagent that can be used todirectly detect the virus in a simple, quick and speciﬁcmanner from an early stage after infection.

Our Group developed a reagent that can directly detect
the virus by applying the accumulated technologies, aswell as our original antibody screening technique andthe technology to manufacture gold nanocolloid wehave accumulated over many years.

Gold colloid

We at Diagnosis Kit Business Unit are vigorously committed to development every
day to provide diagnostic kits that can be handled easily to customers all over theworld. This diagnostic kit contains gold colloid that is physically and chemicallycontrolled and modiﬁed to enhance the performance of the diagnostic kit.
Due to population growth in developing countries, aging in developed countries,
pandemic of infectious diseases facilitated by the expansion of transportation systems
and other reasons, medical cost keeps rising to be a social challenge. We willcontinue to develop and produce diagnostic kits useful for diagnosis in order to makeboth medical and economic contributions.
Leader, R&D Department, POCT Products Business Unit, Global Marketing / R&D Division08

TANAKA CSR REPORT 2017

SUZUKI Keita*excerpt

Patent No. 5912559

Method for producing FePt-C-based sputtering targets

Patent No. 5917201

Test strip for immunochromatography

Patent No. 6006647

Mesh for spraying machines and method for producing the same

Patent No. 6049480

Stirrer for producing glass

Patent No. 6093224

Peroxide decomposition solid catalyst, and method for decomposition treatmentof peroxide using the same solid catalyst

Patent No. 5913556

Sliding contact material and method for producing the same

Patent No. 6091019

Thermal and electrical conductive adhesive composition

Patent No. 6068406

Nano-size silver particle ink and silver particle sintered body

Patent No. 6053223

Catalyst for solid polymer fuel cell and method for producing the same

Patent No. 6002300

Palladium (Pd)-coated copper wire for ball bonding

Patent No. 6014848

Electroless platinum plating solution

Development of a printing technology based on a new principle that can print an ultra-ﬁne circuit
on a large area in a simple and quick manner
We developed a groundbreaking printing technology
called "SuPR-Nap technique" in collaboration with the
National Institute of Advanced Industrial Science andTechnology, the University of Tokyo and Yamagata
University. In this SuPR-Nap technique, the surface of abase material patterned by ultraviolet irradiation iscoated with silver nano-ink to chemically adsorb silver
nanoparticles selectively to only the irradiated parts,and self-fusion of the adsorbed particles forms
low-resistance silver wiring. With this technique, superhigh-deﬁnition metal wiring with a minimum line widthof 1 micrometer strongly bonded to a base material
can be printed on a base material of a large area in a
simple manner at a high speed without any vacuum
technology.

It is scheduled to put ﬂexible touch sensors based on
this technique to practical use.

We at Chemical Materials Development Department develop nanoparticles andcompounds of precious metals. In this development project, we are tackling printing on
a ﬁlm, a ﬁeld in which we had no experience before, and accordingly failed due to anelementary error often at ﬁrst. Nevertheless, we have earned know-how on ﬁlm
processing through discussions with people in and outside the company, and combined
it with the precious metal particle technology of TANAKA to successfully develop
unique techniques that our competitors currently do not have. We will be continuously
committed to research and development to support TANAKA's development of new
businesses in the product category of printing with functional precious metals.
Chemical Materials Development Department, Technical Development Supervisory Division, New Business Company,
Tanaka Kikinzoku Kogyo K.K.

MAKITA Yuichi

TANAKA CSR REPORT 201709

Business
Activities
Based on Social
Responsibility

Quality of TANAKA

Human
Rights

Delivery of "good items" to customers is a principle of Tanaka Kikinzoku Group.
In addition to quality of products, we also pay attention to human rights,
the environment, health and safety, ethics and other issues
in the process of producing products.

Good Delivery Referee○ Eﬀorts to Address Conﬂict Mineral Issues

We promote conﬂict free procurement of raw materials.
To this end, Tanaka Kikinzoku Kogyo K.K. establishedits conﬂict mineral management policy in June 2012 tocontrol risks related to the transaction of conﬂict
minerals, namely 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.
In particular, we attach importance to control of risks
related to the transaction of gold, and have therefore
established the conﬂict mineral management policy on
gold. We also passed a management system audit
by a third party based on the LBMA* Responsible
Gold Guidance in June 2014, and have renewed thecertiﬁcate every year since then.

To guarantee the quality of precious metals distributedin the world, Tanaka Kikinzoku Kogyo K.K. is accredited
as a Good Delivery Referee for gold and silver by The
London Bullion Market Association (LBMA), and also
appointed as a Good Delivery Referee for platinum andpalladium by London Platinum & Palladium Market(LPPM).

Quality Management Activities Based on QMS
To supply safe and secure products that satisfy
customers in a continuous manner, we have establishedand operate a quality management system (QMS)
based on ISO 9001. We also review the eﬀectivenessof the QMS and improve the system so that we canpromptly respond to ever-changing customer demandon quality and meet the trust and expectation ofcustomers. In addition, requirements of ISO/TS 16949,
a quality management system for the car industry that
requires a sophisticated quality management structure,
are reﬂected for the continual improvement of the QMS.
LBMA Responsible Gold Certiﬁcate●"Conﬂict mineral management policy" and"Conﬂict mineral management policy on gold":

Quality Management System Diagram

Customers

Customers

Do
SupportOrganization
andits situation

Operation

Check

Plan
Plan

Leadership

Customerrequirements

Customersatisfaction

Performance
evaluation
Products

Improvement

Act

Ensuring of Social Quality○ CSR supply chain management

Tanaka Kikinzoku Group performs business activities inconsideration of CSR issues including human rights, theenvironment, health and safety and ethics, and complies
with Tanaka Kikinzoku Group Code of Conduct andTanaka Kikinzoku Group Standards of Conduct, which
are in line with the spirit of the EICC Code of Conduct*.
In ﬁscal 2016, we called on approximately 170 suppliers
to comply with the EICC Code of Conduct and also
surveyed their eﬀorts to promote compliance. We
also pursue improvement through simulated audits
conducted by an external organization based on the
EICC Code of Conduct, as well as voluntary checks
performed by the secretariat in the company.

http://www.tamnaka.co.jp/sourcing ̲ policy/○ Eﬀorts to Address Conﬂict Diamond Issues

Each of the diamond industry organizations in theworld agreed to introduce voluntary regulations in2003 so as to complement the Kimberley Process set
up by the governments of the countries involved in
the diamond trade.
Tanaka Kikinzoku Jewelry K.K. welcomes the introductionof this global system to eliminate improper transactionof conﬂict diamonds, and actively supports the voluntary
regulations in the industry.
We ask all diamond suppliers to comply with the
System of Warranty to declare that the diamonds they
supply do not involve funding for conﬂicts.

* EICC Code of Conduct: Code of conduct establishedby the Electronic Industry Citizenship Coalition (EICC)

10TANAKA CSR REPORT 2017

TANAKA CSR REPORT 201711

Protection of the Global Environ ment

Business
Activities
Based on Social
Responsibility

The
Environment

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.
Examples of Energy Saving Activities

GOGO Plan 2020 Core Environmental Policy●

To be a leading company in environmental conservation in Japan

Ideal State we would like to achieve
Environmental activities, including protection of the environmentand contribution to biodiversity, are actively performed to be a leading company
in environmental conservation.

Iwate Plant (replacement of equipment)

As a result of replacement with high - eﬃciency
equipment, the electrical load of air conditioning(especially in summer) was reduced. (Annual CO₂
emissions were reduced by approximately 26 tons.)

State we need to achieve

Water-cooled turbo freezer

Speciﬁc activities and measures to be a leading company
in environmental conservation can be designed and launched.

Present

While environmental managers play a pivotal role, all employees work to provide ideas on how we can bea leading company in environmental conservation, and measures are planned based on the ideas.
At the same time, environmental management activities are promoted as in the past.

FY2016

Core
Environmental
PolicyFY2017All of our production bases in Japan have obtained ISO
14001 certiﬁcation on environmental management,
and make 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 (for establishment ofa recycling-oriented society) and eradicate environmental
incidents (for prevention of environmental pollution), andaggressively strive to meet the targets.
To promote environmental conservation activities in a
steady and smooth manner, we have set up a Group-wide
structure with the Central Environmental Committee, whichis composed of site managers, at the top. In addition, SHE*
Promotion Oﬃce Manager Council, as well as theEnvironmental Managers Sub-committee composed ofenvironmental managers, holds a meeting periodicallyto share information and exchange opinions actively.
* SHE: Safety, Health and Environment.

TANAKA CSR REPORT 2017

FY2020Eﬀorts to Reduce CO₂ Emissions
In the 21st Conference of the Parties to the United
Nations Framework Convention on Climate Change(COP21), the Japanese Government made a commitment
to the international community to reduce CO₂ emissions
by 26% from the ﬁscal 2013 level in ﬁscal 2030.
Tanaka Kikinzoku Group has also set a long-term targetof reducing CO₂ emissions by 30% from the ﬁscal 2013
level by ﬁscal 2030.
Our CO₂ emissions in ﬁscal 2016 grew by around 3%
from the previous ﬁscal year due to increases in theconstruction of buildings and production. Since thereduction has been sluggish in recent years, we haveshifted the focus to improvement of operational
management by Energy Saving Committee at therespective worksites in our eﬀorts to promote energy
saving activities while also receiving advice fromexternal experts. The energy saving measures wetook during ﬁscal 2016 included optimization of theoperating conditions of equipment, adoption of LED
lights, replacement with high-eﬃciency devices andinstallation of photovoltaic power generation equipment.

Fan●

Tanaka Denshi Kogyo K.K.
(reduction of waste liquid)

The company introduced concentration equipment to
reduce waste lubricating oil, which represented 80% of
its industrial waste, and successfully
reduced industrial waste by about
70%.

H

We have established the environmental action policy for the whole Group based on the mid-termbusiness plan GOGO Plan 2020" and aim "to be a leading company in environmental conservation in
Japan" as the "Ideal State we would like to achieve" by ﬁscal 2020.

Environmental Management System

12

Cooling
tower

Examples of Activities to Reduce Industrial
Waste Emissions

C

Waste lubricating oilconcentration equipment●

Shonan Plant (photovoltaic power generation)

Photovoltaic power generation panels with a power
generation capacity of 50kW were installed. The
electricity generated by them is used for lighting in
the plant.

Eﬀorts to Reduce Industrial Waste Emissions
Plants in Tanaka Kikinzoku Group generate a large
amount of acid and alkali when precious metals are
dissolved, reﬁned or collected from waste precious
metal solution. We thoroughly separate waste topromote 3R (reduction, reuse and recycling). In ﬁscal
2016, the waste emissions decreased by approximately
300 tons or 7.3% year-on-year.

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,
the internal limits for air and water pollutants are set
to be 50% of the legal standards in principle.
In case of any abnormal situation, we respond promptly
to it and strive to identify the cause and prevent its
recurrence. We convey information internally through"ﬂash reports" and submit reports to relevant government
bodies in accordance with the reporting and notiﬁcation
standards. While we had an environmental incident
where an actual value exceeded the relevant internal
limit in ﬁscal 2016, it was addressed based on themechanism mentioned above.
●

Number of Environmental Incidents (Internal Limits are Exceeded)(Internal limits are set at 50% of the legal standards)（Cases）1614
12

Air quality

1

Water quality

Others

3

10
8
6
4

2
11

0

2
4

2
2011

2012

1
1

3

3

2

2013

2014

2
4

2015

1
2016

FY

TANAKA CSR REPORT 201713

Business
Activities
Based on Social
Responsibility
Campaign to eliminate malicious soliciting

Fund raising for the Tohoku
Reconstruction Volunteer Program

Blood donation

Support of Sports for People with Disabilities
Tanaka Kikinzoku Group supports and cheers sports forpeople with disabilities through an agreement to become
an oﬃcial partner of the Japanese Para-Sports Associationand other initiatives. To further develop our activities ofknowing , watching , and supporting the sports, weorganized a program to experience sports for people
with disabilities in a company sports event, and also
participated in volunteer activities for the National Sports
Festival for People with Disabilities, while also taking
other initiatives such as a photo exhibition at a worksite
and distribution of brochures to introduce the sports, inﬁscal 2016. Moreover, in April 2017, we started toco-sponsor the Japan Blind Football Association (NPO)and the Japanese women's blind football team.

Participants in volunteer activities for the National Sports Festival
for People with Disabilities in October 2016

Contribution to Local
Communities and Society

Community
Involvement

Co-sponsorship of Robot Contest
for Technical College Students (Kosen-Robocon)
Competition of ideas - Robot Contest of National Colleges ofTechnology (Kosen-Robocon) is an event where technicalcollege students think outside the box and create robots bythemselves to experience the joy of manufacturing. Students
from 62 campuses of 57 technical colleges all over Japan
compete in a preliminary round in eight regions, and thesurviving 25 teams move into the national competition heldin Tokyo.
Tanaka Kikinzoku Group has co-sponsored the Robocon fortechnical college students since 2012 to support
manufacturing activities of young engineers, and President Akira
Tanae presents a special award in the national competition.
While the Kosen-Robocon marks its 30th anniversary in 2017,
Tanaka Kikinzoku Group will continue to support it.

14

TANAKA CSR REPORT 2017

Christmas catering

Cleanup of the neighborhood of a plant

Hokubu Industrial Complex cleanup event

Tanaka Kikinzoku
Memorial Foundation

Sendai Sanja Festival

Industrial complex cleanup event

TANAKA Holdings Co., Ltd. established Tanaka Kikinzoku Memorial Foundation on April 1,2015 to celebrate its 130th anniversary in business. The foundation aims to create
and nurture new ﬁelds of precious metals and contribute to academic and technologicaldevelopment as well as social and economic development.

Grants for Research on Precious Metals
To support various eﬀorts for "the new world developed by precious metals," this grant program invites
research projects on precious metals in any discipline, such as research on new technologies to which
precious metals can contribute. We received a total 177 applications for the invitation in ﬁscal 2016,
which was the 18th, and provided grants of 16.3 million yen in total to 19 research projects.

Platinum Award

Gold Award

Dr. FUKUSHIMA Takafumi

Prof. MIURA Seiji

Associate Professor at Tohoku University

Professor at Hokkaido University

Development of technology that contributes
to expanded directed self-assembly wiring
generated by block polymers andmetal nanoparticles

An attempt to create precious
metal-based high-entropy alloys andexperimental formation of multi-element
phase equilibrium

Bond ofLove - Cherry Blossom
Trees Planting 135

Bond of Love - Cherry Blossom Trees Planting 135

Tanaka Kikinzoku Group is committed to the activities we can perform to contributeto the local communities and countries with which we are linked through our businessactivities 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.

Planting of tulip bulbs

Ginchakai (open-air tea ceremony)

We have performed various volunteer activities tosupport the rehabilitation of the Tohoku Region since theGreat East Japan Earthquake. In the support activities
launched under the theme of "inheritance of memories" inﬁscal 2013, we plant cherry blossom trees with funds
donated by employees to create a row of the trees in thefurthest inland areas hit by the tsunami so that they canbe landmarks for evacuation. The goal is to plant 135
trees by 2020 when we celebrate our 135th year inbusiness, and we have planted 107 trees in total so far.

Six years have passed since the Great East Japan Earthquake, and we now have fewer
opportunities to see the tragedy of the disaster, the current situation of the aﬀectedareas or other related news in the media. While it is often said that the opposite oflove is indiﬀerence, I participated in volunteer activities because I felt that the interest
was waning and I wanted to do something. In the aﬀected area where we planted
trees, I heard an aﬀected person say that we can do nothing to stop what comes, but
we can do something to survive. I would like to surely pass this comment to others.
Leader, Contact Point Processing Section, Hiratsuka Plant, AuAg Company,
Tanaka Kikinzoku Kogyo K.K.

OBO Toshikazu

TANAKA's social contribution activities https://www.tanaka.co.jp/about/csr/communication.html
Planting of shibazakura by the Greening
and Beautiﬁcation Sub-committee

Shibazakura (moss pink)

Site of the ﬁrst planting for the Tohoku
Reconstruction Volunteer Program

Donation to a welfare fundDonation of old newspapers, etc.

TANAKA CSR REPORT 201715

Free, Vigorousand Honest
Corporate
CultureCreation ofa Safer Work Environment

Labor Practices

Creation of a workplace where employees can work safely with a senseof security is a basic but profound challenge 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.

Safety Activities
acts and situations due to irregular works, and conduct
full inspection and measures to prevent accidents.
Traﬃc accidents decreased by four year-on-year to 55
in ﬁscal 2016. As before, most of them occurred during
driving to or from work or personal time, and morethan a half of them were the accidents in which our
employees were the victims.
To prevent either occupational or traﬃc accidents,
we believe that it is crucial to enhance everyone's
sensitivity to and awareness of safety. Based on thisidea, we will promote safety management activities
including the strengthening of safety training.

Our safety activities during ﬁscal 2016 included
post guard reports by plant managers, check of theimplementation of measures to address past accidents
and safety diagnosis conducted by safety oﬃcers of
the Japan Industrial Safety and Health Association(continued from the previous ﬁscal year) in addition toconventional activities. It was, however, regrettablethat the number of occupational accidents increased
by one year-on-year to 24 and a serious accident also
occurred. In response to the occurrence of the serious
accident, the production sites pay additional attention
to the operation of auxiliary movable parts (in addition
to main movable parts) of machinery, as well as unsafe

GOGO Plan 2020 Core Safety Policy

Health Activities

Give top priority to safety, and establish a secure and cheerful workplace

Ideal State we would like to achieve
Employees cooperate with each other to maintain a safe,
secure and cheerful workplace

State we need to achieve
Present
FY2016

Employees have enhanced their awarenessof safety and can ensure their safety by themselves

FY2017

FY2020Aiming to be the "State we need to achieve" in ﬁscal 2017 and the "Ideal State we would like to achieve" in ﬁscal
2020 based on the mid-term business plan "GOGO Plan 2020," we will promote safety management activities under
the core safety policy "Give top priority to safety, and establish a secure and cheerful workplace."

As a result of the amendment to the Industrial Safety and Health Act of Japan in December
2015, business operators are required to conduct stress checks. We introduced a system
based on the act, created an environment where all employees can answer and thenconducted the ﬁrst stress check in July 2016. The stress checks will be eﬀectively used todevelop a pleasant working environment for employees in the future.
We will also continue the "health challenge" program and the "quit smoking" campaign,both of which aim to enhance the health of employees. In addition, we organize alife-saving training course in a continuous manner so that employees can take life-saving
actions in case of an emergency patient. In recognition of this initiative, we received acertiﬁcate of gratitude from the Tokyo Fire Department in ﬁscal 2016.

Health Challenge

Although people are conscious of health, they often tend to postpone eﬀorts toimprove their health. In the "health challenge" program, which was introduced inﬁscal 2015 to encourage employees to work to promote their own health, theparticipants select health-related targets that they can try to achieve privately andcomfortably, such as dietary and sleep improvement and physical training, makeeﬀorts to meet the targets for two months and record the progress and results.

Tsukuba Facility has been operated for more than 10 years since the start of target
production in December 2006. During the period, seven human-induced accidents
occurred. To eliminate accidents including traﬃc accidents, we will conﬁrm theimplementation of RA and KYT* and enhance eﬀorts to respond to serious potential
accidents and to promote safety awareness activities while eﬀectively applying thesafety measures we learned through the inspection of worksites in our Group andother activities to our worksites.

* RA: risk assessment; KYT: kiken yochi kunren (danger prediction training)
Safety Manager, Tsukuba Facility, Tanaka Kikinzoku Kogyo K.K.

16

TANAKA CSR REPORT 2017

MATSUSHIMA Mitsutaka

TANAKA CSR REPORT 201717

Free, Vigorousand Honest
Corporate
CultureActive Role of Each Employee

While employees are being diversiﬁed, creation of a workplace where eachof them can fulﬁll their potential is essential for the future of Tanaka Kikinzoku Group.
We pay attention to various aspects of diversity and actively introduce new approaches.

CSR Tsushin (CSR daily news)

Human Resource Development
Tanaka Kikinzoku Group is cultivating personnel in aplanned and systematic manner in accordance with its
policies of using employee training to build self-awarenessand self-reliance, linking education closely to business andspending as much as 20% of work time on education. We
consider that people represent both resources and assets
of a company.
●

Reform of the manager training

We reformed the "manager training" in ﬁscal 2016. In theﬁrst ﬁscal year for the renewed program, a total of 66
managers ranging from managers to the newly appointed
president took the appropriate training courses. In ﬁscal
2017, the scope of the managers who receive the"management training" will be particularly expanded. We
will also create a new "semi-administrator training"
program to provide it to the persons to be newly
promoted to a semi-administrative position. While
improving various training programs every year, we will
help managers increase the level of their management
skills.

Diversity of Employment
For the future of Tanaka Kikinzoku Group, diverse
human resources are essential. In addition to recruitmentof new university graduates, we actively hire non-Japaneseand people with disabilities, and are working to create
an environment where all of them can play an active role.
To develop a pleasant working environment, we have set
up child care leave, child care short-time work, nursing
care leave and other systems that exceed the legal
requirements. We also provide 24-hour consultation
services concerning child and nursing care and othergeneral health issues in cooperation with externalorganizations. The services are available to TANAKAGroup employees working overseas and their families aswell. We also work to create an atmosphere where
employees can use the services easily by, for example,
disseminating them through the internal portal website.
●

Labor Practices

Data in ﬁscal 2016
Number of male employees

1,924（1,８９５）

Number of female employees

831

（83９）

Number of female managers

74

Short-time work hours during pregnancy

1（6）Child care leave

66

（56）

Reduced work hours for child care

61

（55）

Ratio of employees with disabilities

1.80%（1.68%）As a communication tool for the CSR promotion activities,
CSR Promotion Department issues "CSR Tsushin" (CSR
daily news), which is presented in a page preparedwith PowerPoint, every day. Five years have passed
since the ﬁrst issue on April 2, 2012, and the issue
number has already reached 1,200. The issued CSR
Tsushin is posted on the internal portal website
electronically (in a PDF format), and also printed on an
A3 paper and displayed on bulletins, etc. at each
worksite. Eight staﬀ members in CSR Promotion
Department prepare the daily news report by rotation,
mainly on the seven core subjects of ISO 26000.
A feature article on safety, the environment, etc. issometimes produced based on interviews with safety
managers and environmental managers about activities
at their worksites. In the meantime, the participants in
our program to plant cherry blossom trees for social
contribution are asked to submit an article with theircomments and photos.
We started to prepare a daily publication schedule in
May 2017 to announce the subjects of the CSR news
to be published in advance.
We are also promoting aplan to compile roughly
1,000 issues of CSR Tsushin
published in the past ﬁve
years into a brochure.

ComplianceFree, Vigorousand Honest
Corporate
CultureCompliance Promotion System

Compliance Promotion System Diagram
TANAKA Holdings Co., Ltd.
President, executives
Reporting/ Proposalof improvement

Internal
ReportingCommittee
Reporting of
inappropriate
actions, etc.

Daily
management

Consumer Issues

In addition to legal compliance, we continuously promote initiatives
to develop the business activities that are appropriate in light of ethics
of society on a global scale throughout the Group.

Along with legal compliance, we strive to ensure
observance of corporate ethics to conduct fair and soundbusiness activities. CSR & Communication Divisions HQ
receives reports on compliance-related problems andexternal information on compliance in an integrated
manner, takes corrective actions and promotes measures
to prevent recurrence throughout Tanaka Kikinzoku
Group while receiving advice and guidance fromlawyers, consultants and other external experts.
●

Human
RightsCSR &Corporate
Communications
Division

Lawyers
Consultants
Government bodies
Other experts

Advice/Guidance
Feedback
Identiﬁed
problems

Establishmentof a mechanism
to enhance the system

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

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

Internal Reporting System
As a measure to prevent non-compliance, we haveestablished an internal reporting system, in which theInternal Reporting Committee responds to reports andconsultations with investigation. When the committee
concludes that there has been any inappropriate action,
it takes corrective actions on the relevant departments.
The whistleblowers are protected to ensure that they
are not treated in an unreasonable manner.

Establishment of the Personal Information
Management Committee
Personal information of individual customers is managed
properly based on ISO 27001 (the certiﬁcation was
obtained in 2015). In addition, the Personal Information
Management Committee has been established to manage
individual numbers and other personal information of
employees, as well as personal information, etc. ofcorporate customers, in an integrated manner on aGroup-wide basis. The management method is speciﬁed
for each type of personal information in accordancewith ISO 27001 to manage it in a proper manner.

Harassment Prevention Training
To prevent abuse of power, sexual harassment andvarious forms of discrimination, we have organizedharassment prevention training since ﬁscal 2014. The
training is provided to managers/supervisors andgeneral employees alternately every two years. In ﬁscal
2016, training for managers and supervisors wasorganized in all domestic bases. In the training sessions
for the ﬁscal year, a total of 657 participants deepened
their understanding of LGBT*.
* LGBT: lesbian, gay, bisexual and transgender

Compliance Training in Overseas Bases
To prevent non-compliance in overseas bases, we
disseminate the revision of the Standards of Conduct ineach country, and provide basic legal training for
expatriate staﬀ and compliance training for local staﬀ.
In ﬁscal 2016, training was provided to a total of 208
participants at 16 bases in seven countries including
Taiwan, China, Malaysia and Singapore.

* The numbers in parentheses are data from the previous ﬁscal year.

Our Group is committed topromoting the developmentof a working environment
where employees can balance
work and family care.

18

TANAKA CSR REPORT 2017

Training session at a sales base in Thailand

TANAKA CSR REPORT 201719

Free, Vigorousand Honest
Corporate
CultureRisk Management

Organizational
GovernanceTanaka Kikinzoku Group promotes activities to predict risks
from a broad perspective and prepare for them, including business continuity
at the time of a disaster, etc. and security measures.

Risk Management Activities
Companies are required to address risks emerging
one after another through management activities toprevent information leakage, drills to respond tonatural disasters, review of the system in accordancewith legal changes, responses to the internationalizationof transactions and other measures. We review risk
items and activate the function to check and conﬁrm
the situation of responses to them in the company
while summarizing the overall situation in a committee
meeting every six months.

Security
With respect to security measures at our domestic
worksites, we have basically completed the establishmentof a system where employees serve as guard anddevelopment of manuals and other related documents,
and are now at a stage to work to recruit humanresources and update the machine guarding equipment
in sequence. While it is likely that the security industry
in Japan as a whole also has problems due to shortageof personnel until 2020, we will promote preparation toensure that security tasks are performed in an eﬃcientand eﬀective manner while also using problems at ouroverseas worksites as references.

Foundation of CSR
and Business Management

Organizational
GovernanceTanaka Kikinzoku Group is establishing and strengthening a mechanism to maintain healthy andtransparent business management that respects the positions of all stakeholders.

●

Corporate Governance System Diagram

TANAKA Holdings Co., Ltd.
General Shareholders Meeting
Appointment/
Dismissal

Board of Directors

Appointment/
Dismissal
Audit

Coordination

Coordination

Group Management
Committee

Group companies

Board of Auditors

Appointment/
Dismissal

Internal Auditing
Department

Coordination

Independent
Accounting
AuditorIndustrial companies/Cross-functional companies●

Board of Directors (Directors)

The term of the directors of the Group companies is
one year so that they can eﬃciently respond to therapidly changing business environment and their
management responsibility is made clearer. The Boardof Directors of TANAKA Holdings Co., Ltd. decides
the basic policy for the business operations of thecompany as well as the Group as a whole. The Boardof Directors of each Group company makes decisions
on important matters and receives reports on thestatus of the business operations to supervise theoperations of the directors.
●

Group Management Committee

As to important issues related to the Group as awhole, as well as the matters for which adjustments
between Group companies are required, GroupManagement Committee makes discussions anddecisions, undertakes adjustments and gives approvalin order to facilitate discussions and operations in the
Board of Directors. As the president of each Group
company attends the committee meeting, the committee
also aims to report the respective activities of thecompanies and share the relevant information.

Business Continuity Planning (BCP)
We conducted a drill of the emergency task force inpreparation for a major earthquake hitting the Tokyo
area in February 2017. While it is diﬃcult to avoid alarge-scale earthquake, which is anticipated to occur
within the next 30 years with a probability of 70% or
more, we are making continuous eﬀorts to minimize
the damage through preparation of related equipment,
review of the manuals and implementation of thedrills. In particular, we are restructuring the plan thatsimulates responses to various situations caused bynatural disasters.
In ﬁscal 2017, we will conduct emergency response
drills with focus on business continuity in the production
ﬁeld, identify any problems and further improve the planin order to prepare for emergencies.

20

TANAKA CSR REPORT 2017

CSR Management
Based on the Corporate Philosophy, we will work topromote healthy business activities as a leading
precious metals company and fulﬁll social responsibility
as a member of the local community, and contribute to
the realization of a prosperous society and a beautiful
future for the Earth supported by precious metals. To
this end, CSR management based on ISO 26000,
which is international guidelines on social responsibility,
is actively developed through coordination between
CSR & Corporate Communications Division HQ, CSR
Promotion Department and the Group s bases.

Corporate Governance Structure andInternal Control
We aim to realize healthy and transparent business
management by enhancing the management monitoringmechanism and to always be an eﬃcient and competitive
corporate group.
We have also established a corporate governance systemand speciﬁed basic policy for the internal control system
to ensure respect for the rights and interests of all
stakeholders, business operations in a legitimate andreasonable manner and appropriate and transparent
accounting. Based on the system and basic policy, theBoard of Directors, Group Management Committee, theBoard of Auditors and Internal Auditing Department
play their respective roles in the internal control
system designed to facilitate the achievement of ourmanagement goals in a reliable manner.

●

Board of Auditors (Auditors)

TANAKA Holdings Co., Ltd. has in place the Board ofAuditors composed of all auditors, which receives
reports concerning important matters related to audits
and makes discussions and decisions about them.
Auditors are mainly in charge of monitoring business
operations of directors.
●

Internal Auditing Department

Internal Auditing Department has a duty and responsibility
to assess and verify whether business is performed in aproper and eﬃcient manner and make recommendations
to management on a fair and independent footing
in order to help the Group companies achieve themanagement goals eﬀectively. The department also
exchanges opinions with the Board of Auditors andaccounting auditors regularly to ensure mutual
cooperation.

TANAKA CSR REPORT 201721

CSR Performance／Third-party Assurance

Number of employees (in Japan)

Number of managers andhigher-level personnel

as of March 31, 2017as of March 31, 2017

Female

Male

831

1,924

（％）

2

Female

Male

1.80

1.80%

1.70

74

512

Number of the new patents
registered in Japan

Ratio of employees with disabilities（Cases）

80

0

0

2012

2013

2014

2015

2016

FY

FY

2013

2014

2015

Average age
Male

(age)

60

FemaleTarget number

30

2013

FY2016

2012

2016

41.9

38.8

42.0

39.4

43.0

40.0

42.0 41.0

42.4 41.6

Actual cumulative number

60

2014

84

2015

40

107

2016
2020

20

Short-time work hours
during pregnancy

1Reduced work hours
for child careChild care leave

66

61（including 3 males）

0

0

2012

2013

2014

2015

2016

FY

10

20

30

40

50

60

70

80

90

100

110

135
135

Third-party Assurance

Industrial waste emissions【 CO₂ emissions 】（tons/year）（tons/year）

40,00012,50010,00035,00011,2967,500

30,00025,000FY

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

Total: 586

Number of employees who usedthe childcare leave system (in Japan)

39

31

20

1

Number of employees: 2,755

39

40

1.68

1.43

62

48

60

6,507
33,11632,30331,84632,210

5,598

5,000

33,279

4,339

4,028

2015

2016

2,500
20,000
0

2012

2013

2014

2015

2016

0

FY

2012

2013

2014

FY

CO₂ emission factor of Tokyo Electric Power in FY2012(0.406 kg-CO₂/kWh) is used to calculate CO₂ emissions
from power consumption for each of the ﬁnancial years.

Number of occupational accidents

Number of traﬃc accidents

Occupational accidents（Cases）(the number in parentheses is the numberof accidents involving an absencefrom work of four days or more)

50
40
30

22

80

(the number in parentheses is the numberof accidents during driving to orfrom work or personal time)

60（60） 59（56） 59（56）55（53）

60
50

23（2） 24（3）

23（2）

40

16（4）

30
20

10
0

90

Traﬃc accidents

83（82）

70

31（1）

20

（Cases）

10
2012

TANAKA CSR REPORT 2017

2013

2014

2015

2016

FY

0

2012

2013

2014

2015

2016

FY

TANAKA CSR REPORT 201723

Third-party Opinion

Response from Tanaka Kikinzoku GroupSHIMIZU Masamichi

Visiting Professor of Tsukuba Gakuin University, Representative of CCI Research Institute, Management
Communication Study Team Leader of the Japan Society for Corporate Communication Studies, Auditorof the Public Relations Society of Japan, Environmental Counselor【Proﬁle】

Mr. Shimizu graduated from College of Economics, Yokohama National University. After working at Japan
Management Association, he was a professor at College of Business Administration, Shukutoku University, and retired
to establish CCI Research Institute in 2014. His areas of specialty are environmental and CSR communication and PR
management. His publications include Strategic Thinking on PR Management,
Companies Learning from Sanpo
Yoshi and Loved by People, Environmental Communication, Company Friendly to People - Security and Safety,
Management Based on Ties, Introduction to Public Relations," "Theory and Practice of CC Strategies - Environment,
CSR and Coexistence," "Introduction to CSR Management for Company Employees" and many more.

If I am asked what my impression of Tanaka Kikinzoku Group is, I would answer that it is a company that sows theseeds of corporate value. I felt so when I saw minute parts on a line ﬂowing like a river, as well as fresh smiles, at its
Hiratsuka Plant. I will give my comment on this report based on that experience.

Three Keywords: Free and Vigorous, "Connection" and Corporate Value
The Message from the President in this year's report
clearly mentions oﬀensive and defensive measures forthe achievement of the goals of the medium-term
management plan, which sets 2020 as the target ﬁscal
year, as in the previous year's report. Then, the phrasesof "free and vigorous corporate culture" and the "Ideal
State we would like to achieve" in 2020 came to myattention.
They were also followed by the announcement ofcommitment to the two major initiatives of "support ofsports for people with disabilities" and "support of therehabilitation of Kumamoto and Tohoku."
I reread the message several times to ﬁnd implicationsin the words of the leader. Then, I ﬁnally started togradually understand why "Values Created by TANAKA"
was newly incorporated this year.
The page on industrial products refers to "electrodes,
electric wires and contacts" and "catalysts," which are
actually what I saw at the plant. Meanwhile, on theright-hand page about assets and jewelry, the explanationof "a sense of security," "credit" and "recycling" includes
an impressive comment that "the attitude to neverdisappoint customers is reﬂected on products andcustomer services."
I assume that the products of the company, as well as its
customer services, focus on "connecting" goods andgoods or people and people. The parts are delivered to
not only domestic customers but also overseas ranging
from Asian countries to Europe and the United States.
The raw materials are also imported from every cornerof the world and used to create new values in the
Tanaka Kikinzoku Group.
I referred to "corporate value" at the beginning because
I think that the businesses and activities of the company
are ﬁrmly connected to the industry and people aroundthe world even if the connection is not directly visible. In
addition, the ﬁnancial results on page 4 indicate that thecompany has sales of more than 1 trillion yen. Japan
has only 150 companies or so with sales of that size.
Both environmental management standards and social
responsibility standards require "activities appropriate
for the power of inﬂuence" and the company therefore
needs to achieve a balance on this aspect as well.

Response to the Third-Party Opinion
To realize the ideal state we would like to achieve in 2020 in the GOGO Plan 2020, "Having inherited the free andvigorous corporate culture, the Tanaka Kikinzoku Group has grown and developed to be a global company as a resultof the further promotion of the three key precious metal businesses," the Tanaka Kikinzoku Group is actively
committed to CSR activities that aim to improve the brand value of the company and contribute to the realization ofa sustainable society through activities giving top priority to safety, eﬀorts to reduce industrial waste, to reduce CO₂
emissions and to eradicate environmental incidents and other initiatives.
The CSR Report for ﬁscal 2017 introduced "Values Created by TANAKA" as a new component. This is based on theindication of Professor Shimizu concerning the previous year's report that we needed to make eﬀorts to help thereaders have a better understanding about our CSR promotion activities, aiming to make the structure of the report
clearer and help our stakeholders deepen their understanding.
As to the task indicated in his comment for this ﬁscal year that "In this new current, the Group should solidly play aleading role that is appropriate for it," we consider it to be an important task for the
Tanaka Kikinzoku Group in its eﬀorts to grow and develop into a global company, andwill expand eﬀorts for the task actively across the Group along with CSR promotion
activities.
We hope that this CSR Report helps our stakeholders deepen their understanding andthat they use the report as a tool for mutual communication. So, we would appreciate
your opinions and comments.

Manager of CSR & Corporate Communications Division, Corporate Oﬃcer,
TANAKA Holdings Co., Ltd.

ISO 26000 Comparison Table
Core subjects of ISO 26000
Organizational
Governance

Organizational
Governance
Human Rights

Human
RightsIn 2020, which is the target year for the company's
medium-term management plan, the Tokyo Olympic
and Paralympic Games will be also held. Various
actions for the preparation, ranging from developmentof facilities to recruitment of volunteers, will become
apparent from this year to next year. At the same time,
eﬀorts to consider the environment, which have been
made since the Sydney Olympic Games, will be also
accelerated.
The Organizing Committee has already announced theSustainable Sourcing Code, and ISO 20400 (sustainableprocurement) was issued in April this year. Accordingly,
the commitment to actions in consideration of theenvironment and CSR will be enhanced but never
weakened. In this new current, the Group should solidly

24

TANAKA CSR REPORT 2017

play a leading role that is appropriate for it.
I believe that one of the essential conditions for a leader
is to gather talented human resources around and makeeﬀective use of their abilities. However competent theleader is, he or she can do nothing alone. Abilities toinvolve those nearby and suppliers, as well as abilities tomake full and eﬀective use of human resources, should
be utilized to ﬁnd and grow the seeds of business andCSR activities.
To this end, I sincerely hope that the mutual relationships
between the sections of this CSR report are clearly
understood and also that the report is read in relationshipto various types of information posted on the Group's
website as well as experiences at worksites and lines.

ConsumerIssuesCommunity
Involvement
andDevelopment

Eﬀorts of TANAKA

Page

Risk management activities / Business continuity planning (BCP) / CSR management

P.20

Security

Security

P.20

Corporate
governanceCorporate governance system diagram / Corporate governance and internal control /Board of Directors (directors) / Group Management Committee / Board of Auditors (auditors) /Internal Auditing Department

P.21

Supply chain
CSR

Good Delivery Referee / Quality management activities based on QMS / Quality management system diagram
CSR supply chain management / Eﬀorts to address conﬂict mineral issues / Compliance with the Kimberley Process

P.10
P.11

Compliance

Compliance promotion system / Compliance promotion system diagram / Internal reporting system /Harassment prevention training / Compliance training in overseas bases

P.19

SafetySafety activities / Core Safety Policy

P.16

Health activities / Health Challenge

P.17

Human resource
development

Human resource development / Diversity of employment / Data in ﬁscal 2016 / CSR Tsushin

P.18

The environment

Core Environmental Policy / Environmental management system / Eﬀorts to reduce CO₂ emissions
Example of energy saving activities at Iwate Plant / Example of energy saving activities at Shonan Plant /Eﬀorts to reduce industrial waste emissions /Example of activities to reduce industrial waste emissions in Tanaka Denshi Kogyo K.K. /Environmental incident eradication activities / Number of environmental incidents

P.12
P.13

Creation andprotectionof intellectual
properties

Creation and protection of intellectual properties / Some of the patents acquired in FY2016

P.09

Fair Operating
Practices

Consumer Issues

Research anddevelopment
approach

Development of a reagent for the detection of Zika virus /Development of a printing technology based on a new principle that can print an ultra-ﬁne
circuit on a large area in a simple and quick manner

P.08

Information security

Establishment of the Personal Information Management Committee

P.20

Social contribution
activities

Support of sports for people with disabilities /Co-sponsorship of robot contest for technical college students (Kosen-Robocon)/Bond of love - cherry blossom trees planting 135 / Grants for research on precious metals

P.14

The Environment

Fair Operating
Practices

IssuesRisk management

HealthLabor Practices

Labor Practices

What connects the year 1997 and the year 2020

KAWAGISHI Tetsuya

The
Environment

Community
Involvement

P.15

TANAKA CSR REPORT 201725