CSR Report 2018

PlatinumGold

SilverPalladium

From 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.

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

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

Rhodium

Iridium

Ruthenium

OsmiumWhen 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.

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

Useful in biotechnology andforensic sciences.

A（2）-060002

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.

CONTENTS

Overview of the Tanaka Kikinzoku Group

Corporate Philosophy and Code of Conduct

Introduction■Financial results overview
million yen

Corporate Philosophy
Net sales

Year-on-yearchangeFY2016FY2017

1,064,259

976,613

91.8％

The TANAKA group:

Income before
income taxes

6,128

18,039294.4％

A leading company in the ﬁeld of precious metals,

Net income
attributable toowners of parent

3,690

13,391362.9％

581,304

566,196

97.4％

33.4％

37.0％

Total assets

With superior creativity and technical excellence,

Capital adequacy ratio

We build customer trust through rapid responses that exceed expectations,

Values Created by TANAKA

134

140
120

Development of

06 a Hydrogen Society

89

100

75

80

50

60

Eﬀective Use of Precious Metals

37

40

08 Research and Development to20

Code of Conduct

02 Message from the Presidentof TANAKA and
04 Businesses
Values Provided by It

Net income attributable to owners of parent

As well as to the future of the planet through sustainable use of precious metals.

Tanaka Kikinzoku Groupー(100 million yen)Contribute to the creation of a prosperous society,

00 About theCreate a Wide Range of Values

0

2013

2014

2015

2016

2017

FY

1. Greet Everyone

For Customers, for the Environment
and for Society

Net sales

2. Show your Smile(100 million yen)
12,0003. Give thanks

10,0009,677

10,267

10,6438,564

10 Quality of TANAKA

9,766

8,000

4. Maintain Safety

6,000

of
12 Protection
the Global Environment

4,000

5. Challenge Yourself

2,000
0

2013

2014

2015

2016

2017

5,813

5,662

FY

to Local
14 Contribution
Communities and Society

Total assets(100 million yen)
6,000

TANAKA is accredited as a Good Delivery Referee for goldand 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 forassessing Precious metals melting technologies and analyticalskills of all accredited gold and silver reﬁners.

5,000
4,000

3,989

4,545

Free, Vigorous and Honest
Corporate Culture

4,222

of a Safer Work
16 Creation
Environment

3,000
2,000
1,000
0

2013

2014

2015

2016

2017

FY

18 Active Role of Each Employee
Compliance,

Editorial
PolicyTanaka 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 communication with stakeholders for the improvement of the Group's initiatives
in the future.
This year s report adopts a new design concept of spring," 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, 2017 to March 31, 2018
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 areas of the report where the scope diﬀers.

Publication

July 2018

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 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

Management and
20 Risk
Corporate Governance

Performance
22 CSR
Third-party Assurance
Third-party Opinion

24 ISO 26000 and

SDGs Comparison Table

TANAKACSR REPORT 201801

GOGO Plan 2020
What Tanaka
Tanakka Kikinzoku Group Wants too 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 the

Ideal Statewe would liketo achieve

three key precious metal businesses.

Start

State we needto achieve

FY2015FY2017

FY2020the outstanding shares of Metalor Technologies

In addition, to monitor risks related to ﬁnancial

International, a peer company based in Switzerland

derivative products properly, we set up thethat has a history of more than 100 years like our

Derivative Transaction Committee in ﬁscal 2017.

Group, in ﬁscal 2016 and the conversion of

Furthermore, based on the concept of KYC (knowElectroplating Engineers of Japan, Limited (EEJA)

your customer), which was originally shared by

and Taiwan Tanaka Kikinzoku Kogyo Co., Ltd., eachﬁnancial institutions and is widely recognized now,of which had been a joint venture company set up

we established Transaction Screening Department

Promoting CSR activities on
a global scale for sustainability
toward 2020 and beyond

with an overseas partner since its foundation, into

in April 2018. This new organization has functions

wholly owned subsidiaries of Tanaka Kikinzoku

to handle issues on so-called conﬂict minerals andKogyo K.K. in ﬁscal 2017.

eliminate transactions with antisocial forces. The

Prior to those business development activities, we

department is also designed to address issues on

established the Risk Management Committee for

CSR procurement, which has been demanded on arisk management of our Group as a whole in ﬁscal

global scale in recent years, such as RBA (former

2015 and have identiﬁed various risks and

EICC) and LBMA.

Compliance, governance, cybersecurity, disasters, safety, the environment…

promoted countermeasures against them since

These various measures are indispensable for us tothen. We now conduct risk assessment while clearly

maintain our business activities in a stable manner

segmenting the areas to be addressed into natural(for the sustainability of the company) and fulﬁll

disasters, occupational accidents, health hazards,

our corporate social responsibility (CSR). We will

environmental problems, leakage of personal

continue to certainly address risks with the Risk

Fiscal 2017 was the third year of the ﬁrst stage for

information, leakage of conﬁdential information,

Management Committee playing the pivotal role.

the GOGO Plan 2020, a six-year medium-term

issues related to conﬂict minerals and issues related

In the second stage of the GOGO Plan 2020, which

management plan of the Tanaka Kikinzoku Groupto ﬁnancial derivative products. Based on thestarts in ﬁscal 2018 and continues for three years,

In Fiscal 2017, we were keenly reminded of theand the end of the ﬁscal year was the halfway

assessment results, we determine the priority andwe aim for our growth and development to be aneed to analyze risks from multiple perspectives andpoint for the plan. We set the goal to be reachedtake countermeasures against the risks.

global company in order to achieve the "Ideal State

constantly develop and strengthen legal compliancein the ﬁrst half of the plan as the "State we need toWith respect to safety, in particular, we conducted

we would like to achieve" for the Tanaka Kikinzoku

and corporate governance as foundations of theachieve" and made eﬀorts to steadily meet the

a comprehensive safety inspection of all production

Group. While accelerating the progress, we willcompany. Some very famous leading companies

performance targets in the three key precious

sites to thoroughly ensure safe operations as afurther promote and develop CSR activities to satisfy

caused ﬁnancial mismanagement and quality fraud

metal businesses, namely industrial products,

manufacturing company. We implemented a review

all stakeholders including customers, suppliers andscandals. Evolution of IT resulted in problems

assets and jewelry. To this end, we workedof procedures for non-regular work and improvement

partner companies all over the world. I would be

related to cybersecurity and the protection of

to establish our business base through themeasures to reduce the risk of being caught andhappy if you read this report and place yourpersonal information. The geopolitical situation instrengthening of communication and cooperation

also checked the implementation status. The

expectation on the Tanaka Kikinzoku Group,

the world has been changing more rapidly thanamong the Group.

implementation of the improvement measures withwhich will promote CSR activities in a more global

ever. In such a business environment, we believe

During the three years, we enhanced and expanded

the concerted eﬀorts of all employees did not only

way. We will also do our best to live up to yourthat we are strongly required to understand andour business base at a faster pace than ever.

promote the improvement steadily but also enhanced

expectations.

follow up issues on risk management deeply andOur achievements in the period included thetheir safety awareness. As a result, we successfullycomprehensively and maintain business activities

restructuring to establish the in-house company

reduced the number of accidents on production

with foresight.

system in ﬁscal 2015, acquisition of 100% ofsites to the lowest level ever in ﬁscal 2017.

Message from the President

We will manage various risks and move toward the "State we need to achieve."

Understanding rapid changes in the businessenvironment deeply and comprehensively
and responding to risks with foresight

02 TANAKA
CSR REPORT 2018

TANAE Akira
President & CEO,TANAKA Holdings Co., Ltd.
TANAKACSR REPORT 201803

Safety /TrustBusinesses of TANAKA andValues Provided by It

Security

HealthValues Createdby TANAKA

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.

Fun

Environmental
Conservation
Prosperity

We provide customers in a very wide variety of ﬁelds, ranging from semiconductors andelectronic parts to medicine and food, with products that solve their problems.
We underpin the industry in general and the foundation of society through the supplyof precious metal materials as an "unsung hero."

Industrial
products

Values Created by TANAKA

AuAg Company

Chemical Recovery Company

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

Supply of paste, catalyst and compounds based on theworld-class precious
metal recovery andreﬁning technology

PGM Company

Semiconductor Company

Supply of platinum group materials (platinum devices forglass dissolution,
targets for harddisks,
ultraﬁne wires forsensors and medical
uses)

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

AssetsWe oﬀer options to readily use platinum,
gold and silver as valuable and reliable assets.

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

Jewelry

BullionJewelry

New Business Company
Coin

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

Accumulation services

Bridal jewelry

Artifacts* The organizations above are in-house companies set up by Tanaka Kikinzoku Kogyo K.K. for six business areas. They also work together with other Group companies.

Domestic bases

Overseas bases

TANAKA Holdings Co., Ltd.（THD）●

Electroplating Engineers of Japan, Limited（EEJA）

Headquarters (Tokyo)●

Headquarters (Tokyo)●

Hiratsuka Oﬃce

Tanaka Kikinzoku Kogyo K.K.（TKK）●●

Tanaka Kikinzoku Kogyo K.K.（TKK）

Tanaka Kikinzoku Jewelry K.K.（TKJ）

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

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

Tanaka Denshi Kogyo K.K.（TD）

Nippon PGM Co., Ltd.（PGM）

●
●

●
●
●
●
●
●

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●

●

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●

●

Saga Production Headquarters
Shonan Satellite Plant●●

Tokyo Oﬃce

●

●
●

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●

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●

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Headquarters (Tokyo)

●

●

●

Kosaka Plant

Taiwan Tanaka Kikinzoku Kogyo Co., Ltd Tanaka Kikinzoku (Ningbo) Co., Ltd. Tanaka Kikinzoku (Chengdu) Co., Ltd. Seoul Branch Hong Kong BranchTaipei Branch • Kaohsiung Sales Oﬃce 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 America, Inc. Tanaka Kikinzoku International (Europe) GmbH
●

●

●

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●

●

●

●

●

●

Tanaka Denshi Kogyo K.K.（TD）●●

Tanaka Electronics Singapore Pte. Ltd. (TES)
Tanaka Electronics Taiwan Co., Ltd. (TET)●●

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

Electroplating Engineers of Japan, Limited（EEJA）

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

EEJA (Shanghai) Co., Ltd.

Metalor Technologies International SA●

Heesung Metal Ltd.（HEESUNG）
Nippon PGM Co., Ltd.（PGM）●

04 TANAKA
CSR REPORT 2018

NIPPON PGM AMERICA, Inc.

●NIPPON PGM EUROPE S.R.O.

(Data as of May 31, 2018)
TANAKACSR REPORT 201805

Values Created by TANAKA

Development ofa Hydrogen Society

The
Environment

Development of Electrode Catalyst for Water Electrolysis

Consumer Issues

Hydrogen energy is gaining attention as energy for the next generation.
The Tanaka Kikinzoku Group will help realize a hydrogen society through its precious metal businesses.

Mitigation of Global Warming and Expectations for the Use of Hydrogen
While eﬀorts to reduce greenhouse gas emissions are being made with a focus on the Paris Agreement thatcame into force in 2016, the use of hydrogen is recognized as a core technology for the shift from fossil fuels.
Hydrogen, which generates no CO₂ when used, is an ultimate clean energy source if it is produced withrenewable energy such as sunlight, wind and biomass. The use of hydrogen for various applications such as
automobiles and households is promoted in Japan and other countries.
Tanaka Kikinzoku Kogyo K.K. has developed and manufactured products that are essential for the production
and use of hydrogen based on the precious metal technology that it has accumulated for many years, including
electrode catalyst and electrolytic membrane used for fuel cell and water electrolysis, as well as reforming
catalyst and palladium alloy hydrogen permeable ﬁlm used for hydrogen puriﬁcation. We are actively working
to help realize a hydrogen society by supplying these products to the market.

H₂

H₂

H₂

The expanded introduction of renewable energy isaccompanied by the growing importance of large-scale
power storage technologies to store surplus power
for a long time. One of the most promising large-scale
power storage technologies is Power-to-Gas, atechnology to produce hydrogen through waterelectrolysis using surplus power, store the hydrogenand use it for power generation or as fuel when needed.
Tanaka Kikinzoku Kogyo K.K. develops and manufactureselectrode catalyst used for solid polymer waterelectrolysis, which is a signiﬁcant technology forPower-to-Gas and started to supply samples ofcatalyst coated membrane (CCM), which is electrolyte

membrane with catalyst, for evaluation in 2018. We will
provide CCM that is suitable for devices and requests
from infrastructure equipment manufacturers to help
shorten the period of technological development
and contribute to the development of even more
eﬃcient devices.

CCM for research anddevelopment that isprovided for evaluation

Potential of Fuel Cell and FC Catalyst Development Center
Tanaka Kikinzoku Kogyo K.K. started to recognize thepotential of fuel cell more than 30 years ago and has
developed electrode catalyst for it since then. We
especially focus on catalyst for polymer electrolyte fuelcell (PEFC), which features small size, light weight andhigh output and is used in fuel cell vehicles as well as
ENE-FARM, fuel cell for domestic use. The use of
ENE-FARM has been expanding, as exempliﬁed by the
cumulative installations exceeding 200,000 units in 2017.
PEFC is composed of two electrodes (positive andnegative) and a solid polymer membrane thatpartitions them. Hydrogen (H₂) is decomposed intohydrogen ion (H+ ) and electron (e- ) at the negativeelectrode and the electron moves to the positiveelectrode via an external circuit, which is a mechanism
to generate an electric current. The hydrogen ion
passes the solid polymer membrane and reaches the

positive electrode, at which it reacts with electron andoxygen (O₂) to generate water (H₂O).
While we established FC Catalyst Development Centerin Kanagawa Prefecture in 2013 as a base for research,development and production of catalyst for PEFC inorder to develop a system for the stable supply, we are
now constructing a new building of the center to
respond to demand growth in consideration of thecircumstances such as the widespread use of fuel cellbuses.

Electrode catalyst for PEFC

Fuel cell solutions provided by TANAKA

H₂

H₂

Production

Use

H₂

H₂

H₂

TANAKA's products are used
H₂ station
Storage of H₂
City gas

H₂ gas turbine

H₂ production
facility

2

Generation of H₂
Electrolysis of water

RenewableenergyElectricity
Portable/
backup2

Domesticuse

TANAKA's technologies are used

H₂

H₂

Electrode catalyst(for using hydrogen)

Reforming/PROX catalyst(for producing hydrogen)

Electrode catalyst
Intake
of H₂

Steam

Oxidation

Hydrogen permeable membrane
Unreﬁned hydrogen Reﬁned hydrogen(supply side)(discharge side)
Dissociation

Dispersion

Recombination

City gas
Desulfurization
IntakeSingle battery of air

06 TANAKA
CSR REPORT 2018

Catalyst for water electrolysis(for producing hydrogen)

Reforming

CO
CO
Cell
shift selective stackoxidation

3 reaction furnaces

Oﬀgas H₂（CO）Heat Utilization

Pd
membrane

H₂ gasGaseous impurity

TANAKACSR REPORT 201807

Values Created by TANAKA

Effective Useof Precious Metals

The
Environment

Consumer Issues

Fair Operating
Practices

While the Tanaka Kikinzoku Group manufactures and supplies industrial products using precious metals,
the production of such metals is limited. So we fulﬁll our duty to reuse and recycle the resources
and circulate them into the market and society.

Application of Precious Metals Technologies to the Medical Field

Circulating All Precious Metals"Bullion Is Money"

The precious metal bullion handled by our Group can
be roughly divided into the following two types:

Our group thoroughly manages precious metal bullion
under the slogan "Bullion is money." In addition tobullion in our production equipment, we spare no pains
to recover even a trace amount of bullion attached towork uniforms and waste clothes in a careful manner tothoroughly make eﬀective use of it.

①Precious metal bullion purchasedfrom suppliers②Recovered and reﬁned used products(waste)While precious metals are limited and valuable
resources that are recycled across the world, theprecious metals procured by our Group from externalsources as raw materials (①) can be regarded asreused articles and those recovered and reﬁned
internally as recycled articles (②). Manufacturing andselling them in the forms of products for industrialuse, products for assets and products for jewelry, we
do not landﬁll precious metal bullion by landﬁll as
waste but circulate all of the bullion we purchase into
the market.

●

To Realize a Circular Economy
An increased number of companies, especially those inEU, have been working for a circular economy (CE) in
recent years. CE is a concept to balance the realizationof a recycling-oriented society and economic activities
and requires the generation of wealth from wastematerials and from waste in business activities.
In the meantime, our Group procures all of the precious
metal bullion to be used as raw materials from recycledresources and dispose of no bullion by landﬁll. We havethus already realized the "closed loop recycling" of
precious metals. We will continue to contribute to therealization of CE through the eﬀective use of precious
metals.

Image of the precious metal cycle

Supplier

Disposal by landﬁll

Zero

Tanaka Kikinzoku Group
Procurement of bullion
as raw materials(reuse)Research and Development to Create a Wide Range of Values

Shipped products

Recovery and reﬁnement

Based on various technologies concerning gold
nanoparticles, our Group is developing andmanufacturing a wide variety of simple test kits.
Our technologies directly related to gold
nanoparticles include those for changing the surface
shape, controlling the particle diameter andchemically modifying the surface while our indirectly
related technologies include those for ﬁxing protein,
nucleic acid, sugar, etc. to the surface of a gold
nanoparticle and suppressing the nonspeciﬁc
adsorption of organic materials to gold nanoparticles.
In addition, we own the technology to screen the
antibodies suitable for simple test agents and thetechnology to manufacture gold nanoparticles andsimple test agents, for example.
Based on these technologies, we have developed
various simple test agents that can be handledeasily and enable a low-cost examination and quick
determination, including simple test agents forrespiratory diseases, skin diseases, mosquito-borne
infections, maternal-fetal transmissions and otherinfections, simple test agents to be used forchecking lifestyle-related diseases, which are
expected to increase in the aging society, and forhome healthcare and simple test agents to detect
ingredients in food and hazardous substances inwater.

Creation and Protection of Intellectual Property Rights
Being aware that intellectual property rights suchas patent rights, utility model rights, trademark
rights, design rights and copyright, as well as
know-how, are important assets for companies,
we actively endeavor to develop such rights.
In the research of new technology and thedevelopment, 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 ourrights in a strict manner in accordance with therelevant laws of each country.

Some of the Patents Acquired in FY2017(for industrial use,
for assets, for jewelry)

Patent No. 06229084 ・・・ Titanium member and manufacturing method therefor and member for electrolysis cell(recycling)

Recycling within the Group

Patent No. 06232496 ・・・ Clad material for air-tight sealing of electronic component andmanufacturing method therefor

Patent No. 06147382 ・・・ Embolic coil and manufacturing method therefor

Customers(corporations and individuals)

Patent No. 06313764 ・・・ Catalyst for polymer electrolyte fuel cell and manufacturing method for the same
Patent No. 06143818 ・・・ Immunochromatographic analysis device for detecting mycoplasma pneumoniae

Other companies
Products

Used
products

Precious
metal bullion

Patent No. 06198343 ・・・ Non-cyan-based electrolytic gold plating solution
Patent No. 06266914 ・・・ Method for analyzing precious metal product using the ﬂuorescent X-ray analyzer,

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 aproper price set uniformly throughout Japan based on the bullion price.
The purchased jewelry will be reﬁned and then reused for industrial
products, etc.

08 TANAKA
CSR REPORT 2018

and a computer program for precious metal analysis

Patent No. 06276501 ・・・ Bonding wire for white light-emitting diode
Patent No. 06309842 ・・・ Photocurable electroconductive ink composition
Patent No. 06189740 ・・・ Method for producing silver particle* excerpt

TANAKACSR REPORT 201809

Evaluation from Customers
Tanaka Kikinzoku Group has received awards, etc. from various customers in appreciation for our eﬀorts to support
their production activities. Taking this as encouragement, we will continue to promote the eﬀorts.
FY2017For Customers,
for the Environment and for Society

Quality of TANAKA

Human
RightsFair Operating
Practices

Consumer Issues

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.

Major awards given by customers

Company

CustomerAward

Reason for the commendation

AuAg

Hakodate NDK Co., Ltd.

Best Supplier Award

Overall evaluation (received for six consecutive years)

AuAg

ON Semiconductor

FE Perfect Quality Award

Excellent quality

AuAg

OMRON MALAYSIA

Excellent Supplier Award

On-time delivery rate of 100%

AuAg

Ubukata Industries Co., Ltd.

Excellent Supplier Commendation(bronze prize)

On-time delivery rate of 100%, zero defectChemicalRecoveryNGK SPARK PLUG CO., LTD.

Grand Prizein the material category

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

PGM

Nippon Electric Glass Co., Ltd.

Excellent Proposal
Partner Award

Contribution to the improvement of glassﬁber production eﬃciency

PGM

SeagateSupplier award

Stable quality

PGM

Fuji Electric Co., Ltd.

FY2017 Partner

Stable quality (received for four consecutive years)

Semiconductor

J-Devices Corporation

Excellence Award

Overall evaluation

Best Supplier Award

Highest rate for QCD of copper-based wire
(received for two consecutive years)

Semiconductor

ASE Group

Realization of CSR Activities That Satisfy Customers
Quality Management Activities Based on QMS

Good Delivery Referee

To supply safe and secure products that satisfy
customers in a continuous manner, we haveestablished and operated a quality management
system (QMS) based on ISO 9001. We also review
the eﬀectiveness of the QMS and improve the system
so that we can promptly respond to ever-changing
customer demand on quality and meet the trust andexpectation of customers. In addition, requirementsof IATF16949, a quality management system for the
car industry that requires a sophisticated quality
management structure, are reﬂected for the continual
improvement of the QMS.

Tanaka Kikinzoku Kogyo K.K. serves as a Good
Delivery Referee that assesses accredited reﬁners toguarantee the quality of precious metals distributedin the world. The company 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 and palladiumby London Platinum & Palladium Market (LPPM).

●

Quality Management System Diagram
Customers○ Eﬀorts for Responsible Procurementof Minerals

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 RBA Code of Conduct*¹,
to meet the demand of customers in the world as well
as social expectation. In ﬁscal 2017, we implemented afactory audit by a third-party institution accredited by
RBA, as well as a self-audit, and took corrective actions.
In addition, we call on approximately 200 suppliers tocomply with the RBA Code of Conduct and continuously
conduct the survey of their status of compliance andfeeding back of the results.
In the assessment by EcoVadis*², a supply chain CSR
assessment agency, concerning the environment,
occupational health and safety, ethics and supply chain,
we were awarded a silver rating in September 2017.

We promote conﬂict free 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, 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.
With respect to the transaction of gold, we obtained
certiﬁcation after an audit by a third party based on the
LBMA* Responsible Gold Guidance, and have renewed
the certiﬁcate every year since 2014.

SupportOrganizationand its
situation

Customerrequirements

Eﬀects of QMS

Do○ Eﬀorts to Enhance the Reputationof Our CSR Activities

Operation

Check

Plan
Plan

Leadership

Customersatisfaction

Performance
evaluation
LBMA Responsible Gold Certiﬁcate
Products

Demand andexpectation of
stakeholders

10 TANAKA
CSR REPORT 2018

Improvement

Act

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 30,000
organizations from 150 business categories and 100 countries
in the world are registered. Gold, silver, bronze or no medal(four-grade evaluation) is assigned depending on the rating.

"Responsible Mineral Management Policy" and"Responsible Mineral Management Policy Concerning Gold and Silver"
http://www.tanaka.co.jp/sourcing̲policy/
TANAKACSR REPORT 201811

For Customers, for the Environment and for Society

Protection of
the Global Environment

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.

GOGO Plan 2020 Core Environmental Policy"To be a leading company in environmental conservation in Japan

Ideal
Idea
Id
eall State
ea
Stat
St
ate
te we would
wou
ould
ld like
lik
ike
e to
to achieve
ach
chi
hie
ieve
ieve
Environmental activities, including protection of the environmentand contribution to biodiversity, are actively performed
to be a leading company in environmental conservation.

State
Stat
ate
te we need
nee
eed
d to
to achieve
ach
chi
hie
ieve
ieve
Speciﬁc activities and measures to be a leading company
in environmental conservation can be designed and launched.

Present
Pres
Pres
Pr
esen
entt
en

A system to be a leading company in environmental conservation is established.

FY2017FY2018Core
Environmental
PolicyFY2020Eﬀorts to Reduce CO₂ Emissions◎Best Energy Saving Subject Discovery Award

We strive for the reduction of CO₂ emissions fromproduction activities to contribute to the prevention of
global warming.
Our CO₂ emissions in ﬁscal 2017 grew by 2% from ﬁscal
2016 due to the construction of additional buildings andthe expansion of production. While our CO₂ emissions
have slightly increased due to our active business activities
in recent years, we actually reduced CO₂ emissions by
about 30% over the last 10 years. In particular, wewere committed to energy saving activities with thefull cooperation of the whole company after the Great
East Japan Earthquake in March 2011, which resulted
in a signiﬁcant reduction of energy consumption afterﬁscal 2011.
We will continue to enhance energy saving activities suchas the eﬃciency increase and operational improvement ofvarious devices to further reduce CO₂ emission.

As a program for the Energy Saving Month, we organized"Best Energy Saving Subject Discovery Award" for all
employees in February 2018. We received 295
applications, such as "an energy saving item based ona totally new idea" and "an idea to achieve energy savingwith a little ingenuity," and commended 61 of them.
The subjects we commended will be actively adopted
as energy saving measures in the respective worksites.
We will also share all of the subjects in the applications
through the Environmental Managers Sub-committee
and the internal database and work to introduce themin the whole Group.

●

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

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 regulatory values in principle.
In case of any abnormal situation, we respondpromptly to it and strive to identify the cause andprevent its recurrence. We convey information internallythrough "ﬂash reports" and submit reports to relevant
government bodies in accordance with the reportingand notiﬁcation standards. While we had twoenvironmental incidents in ﬁscal 2017, we tookcorrective measures immediately and have worked toprevent their recurrence.

* SHE: Safety, Health and Environment.

Number of Environmental Incidents
Air pollution

6.0

Compressor

5.4

5.2

5.0

5.3
4.2
3.7

●

Structure to promote environmental conservation activities

6

TANAKA Holdings Co., Ltd.
President, executives
CSR Promotion Department

4
2
0

4

2012

3

2013

2
3
4
2

2014

2015

1

1
1

2016

2017

3.6

3.6

3.8

Wire drawing area

3.9

Contact point line

[After the improvement]

1.0

A remote control panel has been installed for each process tomake it a rule to press the stop button after the use of thecompressor air. Now, the compressor is stopped when the stop
buttons for all processes are pressed, which reduces excess power
consumption.

0.0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

FY

FY

CO₂ emission factor of Tokyo Electric Power in FY2016 (0.474 kg-CO₂/kWh) isused to calculate CO₂ emissions from power consumption for all ﬁscal years.

Compressor◎Introduction of Photovoltaic Power Generation
Isehara Plant and Tsukuba Facility of Tanaka Kikinzoku
Kogyo K.K. introduced photovoltaic power generationin March 2018. Each of them estimates that the
introduction will reduce CO₂ emissions from the wholeplant by 4%.
In addition to the bases above, we have already introduced
photovoltaic power generation at Shonan Plant of Tanaka
Kikinzoku Kogyo K.K. and Saga Production Headquartersof Tanaka Denshi Kogyo K.K. We will promote theintroduction at other plants in a planned manner.

Saga Production Headquarters,
Tanaka Denshi Kogyo K.K.
Shonan Plant,
Tanaka Kikinzoku Kogyo K.K.
Isehara Plant,
Tanaka Kikinzoku Kogyo K.K.
Tsukuba Facility,
Tanaka Kikinzoku Kogyo K.K.

Year ofintroduction

CO₂ emission
reduction eﬀect

FY20164%FY2016

1%

FY20174%FY2017

4%

Air supply
Remotecontrolpanel

Remotecontrol panel

Press area

Remotecontrol panel

Dissolution/
extrusion area

Remotecontrol panel

Wire drawing area

Remotecontrol panel

Contact point line

[Eﬀect] Power use reduced by 47 thousand kWh/year
Cost reduced by 847 thousand yen/year

Eﬀorts to Reduce Industrial Waste Emissions
Tanaka Kikinzoku Group generates a large amount ofacid and alkali waste liquid 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
2017, the waste emissions decreased by approximately
300 tons or 7.8% year-on-year.
●

Industrial waste emissions

12,000(tons/year)

11,296

Reduced by approx. 70%

10,000Central Environmental Committee

8,000

SHE Promotion Oﬃce Manager Council

6,507

6,000

Environmental Managers Sub-committee

5,598

4,000

Environmental Committee of each worksite

4,339

4,028

2015

2016

3,714

2,000

Isehara Plant

12 TANAKA
CSR REPORT 2018

Dissolution/extrusion area

2.0

2

1
1

Press area
Air supply

4.8

Plant

8

2

The compressor was continuously activated because the operation
hours were diﬀerent between processes.

Reduced by approx. 30%

OthersWater pollution

Operational improvement of a compressor (Tomioka Plant)[Before the improvement]

3.0

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
as a whole to reduce CO₂ emissions (for prevention of
global warming) and industrial waste (for establishmentof a recycling-oriented society) and eradicate environmental
incidents (for prevention of pollution), and aggressively
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,
which is composed of site managers, at the top. In
addition, SHE* Promotion Oﬃce Manager Council, as wellas the Environmental Managers Sub-committee composedof environmental managers, holds a meeting periodicallyto share information and exchange opinions actively.

（Cases）10●

CO₂ emissions

CO₂ emissions (10,000 tons)

4.0●

An example of the subjects commended
in the Best Energy Saving Subject Discovery Award

Tsukuba Facility

0

2012

2013

2014

2017

FY

TANAKACSR REPORT 201813

For Customers, for the Environment and for Society

Contribution to
Local Communities and Society

Support of Sports for People with Disabilities

Community
Involvement

Tanaka Kikinzoku Group is committed to the activities we can perform to 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.

Tanaka Kikinzoku Memorial Foundation

Association and domestic and international competitionsof blind football, we organized events to experience"boccia" as a measure to promote sports for people
with disabilities within the company. More than 750
employees in total participatedin the events, which were heldat the worksites and as part ofthe corporate sports festival in
October 2017.
Event to experience boccia in the corporate
sports festival in October 2017

Selected as a model company in the promotion of sports in Tokyo for ﬁscal 2017 for three consecutive years

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 of 167
applications for this 19th invitation andprovided grants of 15.2 million yen in total to
23 research projects.

Tanaka Kikinzoku supports and cheers sports for people
with disabilities through an agreement to become anoﬃcial partner of the Japanese Para-Sports Associationand other initiatives. Furthermore, we started toco-sponsor the Japan Blind Football Association (anon-proﬁt organization) and the Japanese women's
blind football team in April 2017.
In ﬁscal 2017, in addition to watching and cheering aswell as participation in volunteer activities at Japan ParaChampionships organized by the Japanese Para-Sports

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

Development of a platinum electrodedevice for manipulating artiﬁcial
nerve tissues produced from humaninduced pluripotent stem cells (iPSCs)
Gold Award
2 million yen

Dr. IKEUCHI Yoshiho
Associate Professor,
the University of Tokyo

In vivo precious metal
catalysis in mammals
for treatment of disease

Gold Award
2 million yen

Dr. TANAKA Katsunori
Chief Scientist, RIKEN

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 thejoy of manufacturing. Students from 62 campuses of
57 technical colleges all over Japan compete in apreliminary round in eight regions, and up to 26 teams
are selected to move into the national competition
held in Tokyo.

Tanaka Kikinzoku Group has co-sponsored the
Robocon for technical college students since 2012 tosupport manufacturing activities of young engineers,and President Akira Tanae presents a special award in
the national competition.
Tanaka Kikinzoku Groupwill continue to support
the Kosen-Robocon.

Bond of Love - Cherry Blossom Trees Planting 135

Bond ofLove - Cherry Blossom
Trees Planting 135

We have performed various volunteer activities tosupport the rehabilitation of the Tohoku Region since
the Great East Japan Earthquake. In ﬁscal 2013, welaunched support activities under the theme of"inheritance of memories" with the initial target of
creating a row of cherry blossom trees in the furthest
inland areas hit by the tsunami so that they can belandmarks for evacuation. We now develop the support
activities funded by donations from employees with theaims of maintaining the planted cherry blossom trees
and passing down the story of the great tsunami to next
generations. The goal is to plant 135 trees by 2020
when we celebrate our 135th year in business, and wehave planted 127 trees in total so far.

Main Activities[Donation and Fund-raising Activities]
We held internal ﬂea markets and donated two recumbent
bicycles purchased from the proceeds to a community
activity support center.
Worksite: Saga Production Headquarters, Tanaka Denshi Kogyo K.K.
No. of participants: 125
Date: August to December 2017

We donated proceeds from internal ﬂea markets and thesales of used PCs and miscellaneous goods in the company
to a childhood cancer treatment fund.
Worksite: Tanaka Electronics Singapore Pte. Ltd.
No. of participants: 200
Date: July 2017

[Sports Promotion Activities]
We supported children from Seikaen (an orphanage) insports practice for prefectural tournaments (men's baseballand women's volleyball).
Worksite: Saga Production Headquarters, Tanaka Denshi Kogyo K.K.
No. of participants: 39
Date: May to August 2017

The contact point for the "Bond of Love - Cherry Blossom Trees Planting 135" activities wastransferred from CSR Promotion Department to Tanaka Kikinzoku Memorial Foundation in
April 2017, and I participated in the planting of cherry blossom trees for the ﬁrst time. While
I had been involved as a volunteer for the fundraising activities before, I learned that the

We provided a total of 12 medals for Tokyo Marathon 2018,
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 andwomen's wheelchair marathon races, which have beeninternational races since 2016.

[Cultivation of Human Resources and Developmentof Art and Culture]
We organized an oﬃce tour for the employees working at
the plant and their families. The ﬁrst tour was organized in2012 and this year's tour was the sixth.
Worksite: Shonan Plant
No. of participants: 24 in total (15 children and 9 parents)
Date: August 2017

We organized "Summer Holiday Science Workplace Tourin TANAKA," a work-experience and oﬃce tour for thedevelopment of science and engineering-related humanresources. The ﬁrst tour was organized in 2015 and thisyear's tour was the third.
Worksite: Shonan Plant
No. of participants: 28 in total (20 students and 8 parents)
Date: August 2017

[Local Cleaning Activities]
Each of our worksites implements activities to clean theplant, its neighborhood and other areas in a regular manner.
Worksite: Iwate Plant, Tomioka Plant, Ichikawa Plant, Isehara Plant,
Hiratsuka Plant, Shonan Plant, Tsukuba Facility,
Saga Production Headquarters of Tanaka Denshi Kogyo K.K.,
Hiratsuka Oﬃce of Electroplating Engineers of Japan, Limited,
Main Store (Ginza) of Tanaka Kikinzoku Jewelry K.K.,
Tanaka Electronics (Hangzhou) Co., Ltd.

Date: February 2018

operation staﬀ has to work much harder than participants. As the "Bond of Love - Cherry
Blossom Trees Planting 135" initiative has been well established in the Tanaka Kikinzoku
Group with the activities of the past six years, a large amount of money was donated fromGroup companies again this year. While placing great value on the activities that we haveaccumulated, we will work to improve our activities and continuously contribute to therehabilitation of the aﬀected areas in cooperation with you.

Donation and fund-raising activities(Tanaka Electronics Singapore Pte. Ltd.)AKAI Takako
Secretariat, Tanaka Kikinzoku Memorial Foundation(assistant to Manager of Finance and Accounting Department, TANAKA Holdings Co., Ltd.)

14 TANAKA
CSR REPORT 2018

Sports promotion activities
Gold, silver and bronze medals
for Tokyo Marathon 2018

Cultivation of human resources anddevelopment of art and cultureOﬃce tour for families (Shonan Plant)

Local cleaning activities(Isehara Plant)

For other activities, see our website: https://www.tanaka.co.jp/about/csr/communication.html
TANAKACSR REPORT 201815

Safety Activities

Free, Vigorous and Honest Corporate Culture

For comprehensive safety inspection of all production
sites, we reviewed procedures for non-regular work,
implemented improvement measures to reduce therisk of being caught and checked the implementation
status in ﬁscal 2017. The implementation of the
improvement measures with the concerted eﬀorts ofall employees also enhanced their safety awarenessand we successfully reduced the number of accidents
on production sites in ﬁscal 2017 to the lowest level
ever. However, many employees had a falling accident
on their way to work or in an administration-related
workplace. Accordingly, we now give training toprevent falling accidents with DVDs and safety training
materials in a constant manner. We also had safety
managers mutually patrol their and other worksites

and conducted safety diagnosis by safety oﬃcers of theJapan Industrial Safety and Health Association as we
did in the previous year.
The number of traﬃc accidents was 54 in ﬁscal 2017,
which remained almost unchanged year-on-year, whilemost of the accidents occurred during driving to orfrom work or personal time as before. The situationthat more than a half of them were the accidents inwhich our employees were the victims has notchanged either.
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.

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

Ideal
Idea
Id
eall State
ea
Stat
ate
te we
e would
wou
ould like
ould
lik
ike
e to
to achieve
ach
chi
hie
ieve
e
Employees cooperate with each other to maintain a safe,
secure and cheerful workplace

State
Stat
ate
te we need
nee
eed
d to
to achieve
ach
chi
hie
ieve
ieve
Employees have enhanced their awareness of safety
and can ensure their safety by themselves

FY2015 to FY2017

FY2018 to FY2020

Having 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."

Health Activities
The physical and mental health of employees leads toimprovement of productivity. Our Group organizes the"health challenge" program once a year to encourage
employees to enhance their awareness of health on adaily basis. In this program, the participants freely
select targets from among 17 items related to healthmaintenance and promotion and try to achieve themduring the challenge period (about two months). The

program is designed to give employees an opportunity
to make it a habit to maintain and promote theirhealth and prevent diseases, etc.
In addition, while a stress check has been conductedsince 2016, we are working to disseminate its purpose
and signiﬁcance as a measure for mental health among
employees so that more employees take a stresscheck.

TOPICS
Imperial Palace Walking

Creation of a
Safer Work Environment

We promote programs to encourage and assist employees to be involved in sports activities including "doing," "watching" and"supporting" them. As a program for the promotion of "doing" sports activities, we organized an "Imperial Palace Walking"event in October 2017 to promote the health of employees. Twenty-three employees and their family
members in total joined the event and walked for about one hour on the approximately 5-km
walking course around the Imperial Palace.
We received comments from the participants such that "I joined the event with my child and enjoyed
it as a family event" and "The event made me feel like doing more exercise."Labor Practices

Creation of a workplace where employees can work safely with a sense of security
is a basic but profound challenge for companies. Tanaka Kikinzoku Group strives toensure the safety and health of employees while focusing on the developmentof relationships that facilitate mutual cooperation between them.

As a retail company, Tanaka Kikinzoku Jewelry K.K. is responsible for ensuring the safety ofcustomers as well as employees. To establish an environment where customers can enjoy
shopping safely, it is essential that employees enhance their awareness of safety. We actively
conduct initiatives for it, including enlightenment activities to encourage employees to submit
proposals on potential accidents and KYT (kiken yochi kunren (danger prediction training))
activities. In addition, we have notiﬁed employees to use an elevator in principle as a measure toprevent a falling accident, which occurred often during the previous ﬁscal year, and gave safety
education to all employees on a temporary basis. We will continuously work to enhance theawareness of safety among all employees through various initiatives.

OTA Takahito Safety Manager, Tanaka Kikinzoku Jewelry K.K.
16 TANAKA
CSR REPORT 2018

TANAKACSR REPORT 201817

Free, Vigorous and Honest Corporate Culture

Active Role of Each Employee

Human
RightsLabor Practices

While employees are being diversiﬁed, creation of a workplace where each of themcan 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.

Work-style Reforms

Human Resource Development

Tanaka Kikinzoku Group is committed to work-stylereforms to establish a workplace where employees
can work with vitality.
We encourage employees to take more paid holidays
through various measures and actively send related
information from the company in an eﬀort to develop
an atmosphere where employees can balance workand child care or family care.
We will continue to make eﬀorts to establish a ﬂexible
and comfortable working environment.

Tanaka Kikinzoku Group is cultivating personnel in aplanned and systematic manner in accordance with
its policies of using employee training to build
self-awareness and self-reliance, linking education closely
to business and spending as much as 20% of work timeon education. We consider that people represent bothresources and assets of a company. Again in ﬁscal 2017,
many employees took various training courses ranging
from new employee introductory training to management
training according to our education program. Especiallyin the manager training, which was reformed in 2016,
many managers became aware of various issues throughthe training and used the outcomes for the managementof their own departments.
While listening to comments from the participants, wewill improve and update the education program every
year.

●

FY2017 (in Japan)
Number of male employees

1,942（1,924）

Number of female employees

825

（831）

Number of female managers

69

（74）

Short-time work hours during pregnancy

1（1）Child care leave

44

（66）

Reduced work hours for child care

70

（61）

Ratio of employees with disabilities

Engagement SurveyBook to Make Use of CSR Tsushin

Tanaka Kikinzoku Group ( T K G ) conducts anengagement* survey (employee awareness survey)of all employees including local staﬀ in other countries
every three years in recognition that the improvementof employee satisfaction is an engine for the growth ofthe company. The timing of the survey is set in a way
to allow the survey results to be reﬂected on themeasures in the ﬁrst ﬁscal year of each of the two
three-year terms of GOGO Plan 2020, our six-year
medium-term management plan. The most recent
survey was conducted in September 2017 and theresults were announced in the TKG quarterly manager
meeting in November of the same year. We will
incorporate the results into the measures for thethree-year plan that starts in 2018 and develop them.

As an internal communication tool for our CSR
activities, we have issued "CSR Tsushin" (CSR dailynews) every day since April 2, 2012. When the 1,000th
issue was published on June 17, 2016, four years after
the start of issuance, we extracted and re-edited
approximately 230 articles and prepared "Book to
Make Use of CSR Tsushin." The printed version of thebook is distributed to all worksites and the data arealso shared in electronic form to make it easy to use
the book as a CSR-related education or presentationmaterial. Employees can browse and use it freely at any
time. In addition to the daily issuance of CSR Tsushin,
we will regularly update the Book to Make Use of CSR
Tsushin to enhance internal communication.

* "Engagement" means the mind of employees to make continuous
eﬀorts without giving up until they produce greater results than
expected with an idea that each worker is always playing
the main role as well as pride and passion for their own jobs.

Book to Make Useof CSR Tsushin

1.86% （1.80%）

Average age: male

42.3

（42.4）

Average age: female

42.3（41.6）

Average service years: male

13.6

Average service years: female

１１．
２* The numbers in parentheses are data from the previous ﬁscal year.

Founded in 2010, Monozukuri University has provided
Foundeducation and training for human resource development
educa
in variousvaforms to new employees, young mid-career
employees, year-round employed workers and equipment
emplo
maintenance staﬀ. In particular, the new employee training
maintgives top priority to education on safety, health and theenvironment and also includes education and training on theenvirobasics of precious metals and the basics of manufacturing.
The lecturerslare senior workers who are playing activeroles in the production ﬁeld and have much practicalexperience. We will continuously work to provide educationexper
and trainingt
to develop humanresources that can immediately
resou
work eﬀectively for the assigned
destinations.
destinYAMAZAKI Hiroshi
YAM"Tomonin" mark18 TANAKA
CSR REPORT 2018

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

Chief M
Manager, Human Resource Development
Section, Business Administration Department
SectionTanaka Kikinzoku Kogyo K.K.

TANAKACSR REPORT 201819

Free, Vigorous and Honest Corporate Culture

Compliance, Risk Management andCorporate Governance
Human
RightsConsumer Issues

Organizational
GovernanceIn 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.

Compliance Promotion System
Along with legal compliance, we strive to ensure
observance of corporate ethics to conduct fair andsound business activities. CSR & Communication
Divisions HQ receives reports on compliance-related
problems and external information on compliance in●

an integrated manner, takes corrective actions andpromotes measures to prevent recurrence throughout
Tanaka Kikinzoku Group while receiving advice andguidance from lawyers, consultants and external
experts.

Compliance Promotion System Diagram

Internal Reporting System

Corporate Governance Structure andInternal Control
Tanaka Kikinzoku Group aims to realize healthy andtransparent business management by enhancing themanagement monitoring mechanism and to always be
an eﬃcient and competitive corporate group.
We have also established a corporate governancesystem and speciﬁed basic policy for internal control toensure 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 systemdesigned to facilitate the achievement of ourmanagement goals in a reliable manner.
TANAKA Holdings Co., Ltd.

TANAKA
TANA
TA
NAKA
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KA Holdings
Hol
oldi
ldi
ding
ng
gs Co.,
Co., Ltd.
Co
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td..
President,
Pres
Pr
esid
es
iden
id
entt,
en
t, executives
exe
xecu
cuti
cu
tive
ti
vess
ve

General Shareholders Meeting
Appointment/Dismissal

Board of Directors
Audit

Reporting/ Proposalof improvement

Internal Reporting Committee
Reporting of
inappropriate
actions, etc.

Daily
management

CSR &Corporate
Communications
Division Advice/GuidanceGroup Management
Committee

Lawyers
Consultants
Government bodies
Other experts

Establishmentof a mechanism
to enhance the system

Companies/Units (Manufacturing, engineering,sales, management)
Compliance with laws, codes, etc. related to the operations

Risk Management Activities

Business Continuity Planning (BCP)

To respond to various risks we face through ourbusiness activities, we regularly conduct a risk
assessment and work to reduce the risks. A risk

We conducted a drill of the BCP emergency task force
in preparation for a major earthquake hitting theTokyo area in February 2018. In this ﬁscal year's drill,
we focused on the response in case of a major
earthquake occurring at night or on a holiday (outside
working hours) and the president and managers
discussed countermeasures and improvement plans.
Remedial measures against the issues and problems
identiﬁed in the drill are taken in a planned manner.

management committee meeting is held every six
months to summarize the situation of responses torisks in the whole Group.

20 TANAKA
CSR REPORT 2018

Internal Auditing
Department

Coordination

Appointment/
Dismissal

Independent
Accounting
AuditorBoard of Directors (Directors)

The term of the directors of the Group companies is one year
so that they can eﬃciently respond to the rapidly changing
business environment and their management responsibility ismade clearer. The Board of 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 Board of
Directors of each company makes decisions on importantmatters and receives reports on the status of the business
operations to supervise the operations of the directors.
●●

Promotion of Personal Information Management
To manage personal information, Tanaka Kikinzoku Group
classiﬁes the information into the three categories of"personal information of individual customers," "personal
information of corporate customers" and "personal
information of employees, etc." Especially for the
management of personal information of individual
customers, we have obtained ISO 27001 certiﬁcation topromote proper management of the information.

Harassment Prevention Training
To prevent human rights violations including abuse of
power, sexual harassment and workplace discrimination
against pregnant women, we have organizedharassment prevention training since ﬁscal 2014. In
ﬁscal 2017, training for general employees wasorganized in all domestic bases and provided to a totalof 1,657 employees. In the training, the participants also
deepened their understanding of LGBT*.
* LGBT: lesbian, gay, bisexual and transgenderGroup Management Committee

As to important issues related to the Group as a whole, as wellas the matters for which adjustments between Group
companies are required, Group Management Committee
makes discussions and decisions, undertakes adjustments andgives approval in order to facilitate discussions and operationsin 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 the companies andshare the relevant information.

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 andat least one auditor is appointed from the outside to ensure
the objectivity of the business management.
●

Drill of the BCP emergency task force(Headquarters of TANAKA Holdings Co., Ltd.)

Coordination

Coordination

Group companies Industrial companies/Cross-functional companies●

Feedback
Identiﬁed
problems

Appointment/Dismissal

Board of Auditors

As a measure to enhance compliance and detect andcorrect any non-compliance, dishonest act, etc. at an
early stage, we have established an internal reporting
system. The content of a report made to the Internal
Reporting Committee is examined in a fair manner,which is followed by an investigation of it if necessary.
When the fact of non-compliance, dishonest act,
etc. has been conﬁrmed, the relevant persons anddepartments are ordered to take corrective measures.
The whistleblowers are strictly protected to ensure thatthey are not treated in an unreasonable manner.

Internal Auditing Department

Internal Auditing Department has a duty and responsibility toassess and verify the eﬃciency and appropriateness of thebusiness of the Group companies on a fair and independentfooting and make recommendations to management. The
department also ensures mutual cooperation with the Board ofAuditors and accounting auditors through a regular exchangeof opinions and other activities.

Export Trade Control Oﬃce works as a department
dedicated to security export control, which aims to prevent
any product or technology of TANAKA from being used forinternational terrorism or crime or diverted to nuclear or
biochemical weapons, etc. that threaten peace. Our oﬃce
is also in charge of aviation security and the managementof the AEO certiﬁcation system to ensure the safety of airtransportation and smooth export clearance at the sametime. While complying with Customs Act, Foreign Exchange
Act and other relevant domestic
laws and also paying close
attention to international matterssuch as the impact of secondary
sanctions by the US Government
on overseas companies, we will
work hard to underpin thecredibility of TANAKA.

YONEKAWA Takashi
Manager, Export Trade Control Oﬃce,
Administration Department
Tanaka Kikinzoku Kogyo K.K.
TANAKACSR REPORT 201821

CSR Performance
Number of executives and employees(in Japan)

Number of managers andhigher-level personnel

as of March 31, 2018as of March 31, 2018

Number of the new patents registeredin Japan

Ratio of employees with disabilities
（％）

2

Male

FemaleMale

Female

1,942

825

512

69

1.80

1.70

1.86%

（cases）

80

62

60

39

1.68

20

1.43

0

2013

1

2014

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

Number of employees: 2,767

Total: 581

Target number

0

2013

2014

2015

2016

2017

Average age

FY2017

60

100

40

43.0

40.0

42.0 41.0

42.4 41.6

42.3 42.3

80

84

2015
39.4

127
135

2020
0

Reduced work hours
for child care

1

44

70

（including 3 males）（including 1 male）

98人

40

20

Child care leave

60

107

2016
2017

Short-time work hours
during pregnancy

0

2013

2014

2015

2016

2017

FY

120

Female

60

42.0

2017

（persons）

30

2014
Male

2016

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

Actual cumulative number

FY

（age）

2015

FY

2013
Number of employees who usedthe childcare leave system (in Japan)

40

39

31

40

FY

10

20

30

40

50

60

70

80

90 100 110

135

20
0

0人
2015

33人
2016

2017

FY

Third-party Assurance

Industrial waste emissions

CO₂ emissions（tons/year）（tons/year）

40,00010,0008,000

35,000

6,507
5,630

6,000

30,0004,339
25,00036,752

36,10036,364

37,6694,000

38,534

4,028

3,714

2,000
20,000
0

2013

2014

2015

2016

2017

0

FY

2013

2014

2015

2016

2017

FY

CO₂ emission factor of Tokyo Electric Power in FY2016(0.474 kg-CO₂/kWh) is used to calculate CO₂ emissions frompower consumption for each of the ﬁnancial years.

Number of occupational accidents

Number of traﬃc accidents（cases）

Occupational accidents（cases）

Traﬃc accidents

50(the number in parentheses is the number of accidents
involving an absence from work of four days or more)

90(the number in parentheses is the number of accidents during
driving to or from work or personal time)

80
40

70

31（1）

55（53） 54（54）

60

30

50

23（2） 24（3）20

60（60） 59（56） 59（56）

40

18（2）

16（4）

30
20

10

10
0

0
2013

22 TANAKA
CSR REPORT 2018

2014

2015

2016

2017

FY

2013

2014

2015

2016

2017

FY

TANAKACSR REPORT 201823

Third-party Opinion

ISO 26000 and SDGs Comparison Table
Core subjectsof ISO 26000
Organizational
Governance【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.

SHIMIZU 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, Memberof the Public Relations Society of Japan, Environmental Counselor

Eﬀorts of TANAKA

Page

Organizational
GovernanceCorporate governance and internal control / Board of Directors (directors) /Group Management Committee

Work-style reforms
Engagement survey
Compliance promotion system
Internal reporting system
Harassment prevention training
Safety activities / Health activities / Imperial palace walking

Labor Practices

Human resource development
Labor Practices

Book to Make Use of CSR Tsushin
Circulating all precious metals / "Bullion is money" / To realize
a circular economy / Recycling through RE: TANAKAThe Environment
The
Environment

Environmental management system

I visited the main plants of TANAKA Holdings Co., Ltd. and constantly exchanged opinions with the staﬀ over the past
six years. Then, when I read the ﬁnal draft of this report, I got an especially strong impression in comparison withprevious years because this year's report contains more comments from employees than the report for ﬁscal 2017and indicates advances in the eﬀorts to establish "honest corporate culture" through the development of "humanassets" and the "corporate governance" structure for modern management.

What the Globalization of Companies and Society Means

Environmental incident eradication activities
Eﬀorts to reduce CO₂ emissions / Introduction of photovoltaic power generation /Best Energy Saving Subject Discovery Award
Eﬀorts to reduce industrial waste emissions
Mitigation of global warming and expectations for the use of hydrogen

The Environment
Consumer Issues
The
Environment

Consumer Issues

Fair Operating
Practiceswhich is developing a very wide range of businesses,
from both reasonable and emotional aspects.
A series of scandals of companies and sports
organizations have recently been in the news. In thisphenomenon, those there feel that something is wrong
and discuss it with other people or post it to share thesense of crisis that "the social order will be destroyed"with more people, and the circle then grows to cause alarge social problem. Many reports have demonstrated
that even a small, familiar problem on safety, quality or
the environment can be recognized as a social challenge
and poses a serious corporate risk in the current
globalized society. As the company is working hardto develop human resources through Monozukuri
University and other initiatives, I expect that it will haveeducation and workplace communication that further
enhance awareness.

Quality management activities based on QMS / Good Delivery Referee
Evaluation from customers
Promotion of personal information management
Grants for research on precious metals

Community
Involvement andDevelopment

Bond of love - cherry blossom trees planting 135

Community
Involvement

4

5

6

7

8

SDGs
9 10 11 12 13 14 15 16 17◯◯

Support of sports for people with disabilities
Co-sponsorship of robot contest for technical college students (Kosen-Robocon) /Cultivation of human resources and development of art and culture

◯

◯
◯

◯
◯

◯
◯

◯

P12
P12
P13

◯ ◯
◯
◯

P13
P06
P07

◯

◯ ◯ ◯
◯ ◯
◯
◯
◯ ◯

◯
◯

P09
P09
P11
P10
P11
P21
P14
P14
P15
P15

Creation and protection of intellectual properties
Expectation from the global community and response to it

Consumer Issues
Consumer Issues

I also paid attention to the attitude to face reality andthe look toward the future, both of which are foundthroughout the report including the pages from
"Message from the President" to "Values Created by
TANAKA" as well as articles on safety, quality andenvironmental conservation and activities to contributeto local communities. To understand the business ofIchikawa Plant to recycle components for automobile
exhaust gas, I had to see a world map. I felt that thisrepresents the inﬂuence of the company on society "inreality" and "in the future" as well as on a global scale.
When I read the draft of this report, I attached the word
"global" to a large number of phrases in it, such as risks,businesses, values provided, values created, theenvironment, social contribution and corporate culture.
Although a person can naturally have only limited
knowledge and experience, with awareness of it, I tried
to understand the individual activities of the company,

Development of electrode catalyst for water electrolysis / Potential of fuel celland FC Catalyst Development Center / Fuel cell solutions provided by TANAKA
Application of precious metals technologies to the medical ﬁeld

Fair
Operating
Practices

3

P21
P11
P18
P19
P20
P21
P21
P17
P1８
P19
P08

Board of Auditors (auditors) / Internal Auditing Department
Eﬀorts for responsible procurement of minerals

Human
Rights2

P20
P21

Risk management activities / Business continuity planning (BCP)

Human Rights

1

◯
◯

◯
◯

◯
◯

◯

◯

◯

◯
◯
◯
◯
◯

P15

Donation and fund-raising activities / Sports promotion activities /Local cleaning activities

Results of the Questionnaire Survey for CSR Report 2017
What articles were especially interesting for you? (multiple answers allowed)
0

5

10

15

Number of answerers: 2,114
20

25

30

35（%）

Message from the President
About the Tanaka Kikinzoku Group
Delivery of New Values to Society
Research and Development
Quality of TANAKA
Protection of the Global Environment
Contribution to Local Communities
and Society

Our Future Has Already Become Reality
I also noticed concerns in reality, which are the ﬁgures
for CO₂ emissions and traﬃc accidents. Although they
have decreased over the past 10 years, it is quitepossible that some problem triggers criticism of reality
from the future in consideration of the situation that
information on the role of automobiles, which are a
product of modern civilization, appears on newspapers
and magazines almost every day. Although this is also a
diﬃcult challenge from a technological perspective, I

hope that the company makes even more eﬀorts toimprove the ﬁgures.
In recent news, I felt uneasy with some comments ofmanagers of major companies given with respect to thescandals on product speciﬁcations, such as "The internal
communication was not enough," "I trust people but do
not trust people's acts" and "What is important in crisis
response is to protect all stakeholders." They may
indicate that the future is already becoming reality.

Creation of a Safer Work Environment
Active Role of Each Employee
Compliance
Risk Management
Foundation of CSR
and Business Management
CSR Performance

How did you feel about the report?
Diﬃcult to understand2%

Insuﬃcient
1%

Turn Awareness of Today into Ingenuity of Tomorrow
Today, the recognition that the digital revolution will befollowed by a "material revolution" is presented. Whilethe company is further expanding its potential for the
future, I feel strongly encouraged by the message from
Mr. Tanae, the president, in the opening of this reportmentioning that the company aims for its growth and

24 TANAKA
CSR REPORT 2018

development to be a global company and that it will
promote CSR activities in a more global way. The
message presents his determination to take further
steps together with each of the employees. I hope thatthe company turns awareness of today into ingenuityof tomorrow while using this report as a clue.

Average53%

Easy tounderstand44%

Not good2%

Too small
3%
Rich

Average53%

Too much
12%

42%

Average45%
Appropriate

Good

49%

82%
Understandability

Content

Information volume

DesignTANAKACSR REPORT 201825