Materiality
To achieve both sustainable business growth and the resolution of social issues, even amid an external environment that is dramatically changing, the Hirata Group identified materiality (important issues) in fiscal 2021.
Materiality is organized into four themes and 10 items. Going forward, the Sustainability Promotion Committee
will take the lead in setting KPIs and targets and then implement initiatives.
Based on changes in the business environment and social trends, the Company will periodically review its
materiality.

Materiality Identification Process In addition to discussions at management meetings andBoard of Directors’ meetings, we received opinions andevaluations from external experts when identifying theimportant issues. Along with incorporating these materiality

issues into the Medium-Term Management Plan, we will
work to instill awareness of them throughout the Company
by specifically reflecting our Sustainability Basic Policy andour sustainability activity vision in the form of activity plans.

Issue identification and management
STEP

1

Having referred to international guidelines on sustainability and survey results from ESG rating agencies, we have identifiedsocial issues that could conceivably have a significant impact on the Group’s management and business. Among approximately
100 issues considered for selection, we have organized into groups those issues that will become candidates for materiality inlight of the Company’s future direction, such as its business characteristics, management plans, and targets.

Level-of-importance assessments by senior management and external experts
From among the extracted and organized issues, we assessed levels of importance to narrow down the important
items in terms of the medium- to long-term management of the Group. For the assessments, we conducted aquestionnaire of internal and external senior management as well as external experts. At that time, we asked themto assess the Company along two axes: level of importance in terms of corporate value (horizontal axis) and level ofimpact on society (vertical axis).
Materiality matrix
High

Identified materiality (important issues)(1) R eduction of environmental impact by theCompany and in the supply chain
STEP

(3) C
 reation of new customer needs in accordance with social changes

Level of impact on society

2

(2) C
 ontribution to carbon neutrality throughproducts and services(4) R esponse to progress of digitalization(5) S ecuring and training human resources(6) C reating diverse, safe, and secure workplaces(7) Improvement of product safety and quality(8) S upply chain management(9) E nhancement of corporate governance(10) R isk management

High
Level of importance in terms of corporate value

Approval and inclusion in Medium-Term Management Plan
STEP

3

Following the assessments, the materiality proposal was deliberated at multiple management meetings and Board of
Directors’ meetings and finally approved at the Board of Directors’ meeting held in January 2022. Having adopted“strengthening of ESG management initiatives” as a Basic Policy under the new Medium-Term Management Plan,
which was announced in May 2022, we are setting targets and working on visualizing the initiatives throughout the
duration of the plan.

Hirata Integrated Report 2023

41

Hirata’s Sustainability

Materiality

With regard to the identified materiality, each working group is currently formulating its 2030 goals and KPIs.
The table below shows some of the goals and KPIs that have already been decided within the Company.

Four themes

Response
to Climate
ChangeMateriality (important issues)

Risks

Opportunities

Key initiatives• Established Environmental Policy andenvironmental management system(acquired ISO 14001 certification)• Examined Scope 1 and 2 emissions,installed solar panels, and examined
renewable energy procurement methods
such as PPA• Promoted the introduction of energysaving equipment, reviewed water
circulation equipment settings, andparticipated in beautification campaigns[GF]
* Currently under discussion
by the Sustainability
Promotion Committee(2) C ontribution to carbon
neutrality throughproducts and services• Trade impact due to the provisionof products that do not meet theenvironmental requirements of ourbusiness partners• Reduced competitiveness of our products• Acquire business opportunities through theprovision of products and services with low
environmental impact• Expand the carbon-neutral market• Expanded the Eco Electric Series lineup• Expanded opportunities to make carbonneutral-related proposals to customers[GMP]
*C
 urrently under discussion
by the Sustainability
Promotion Committee(3) C reation of new customer
needs in accordance withsocial changes•D ecrease of business opportunities due todelays in understanding needs and R&D
due to social changes• Improve competitive advantage by creatingproducts and services that contribute tocarbon neutrality• Expand business fields beyond existingproducts and services• D iscover new customer needs inaccordance with social changes andmake related improvements• Developed and improved key devices in thebattery field for electric vehicles (EVs)(dual head wire bonders, etc.)• Developed and improved products to meetcustomer needs[GMP]
* Currently under discussion
by the Sustainability
Promotion Committee(4) R esponse to progress ofdigitalization• Decline in competitiveness and outflow
of human resources due to a delay inresponding to digitalization• Effective strategy formulation by
understanding customer behavior andmarket trends through data analysis• Respond to progress of digitalization• Prepare the foundation for a smart society• Enhanced the advancement of 3D design(implementation and training)• Use of CADVR and emulators• Automation of other business processes[GMP]
Improve work efficiency byreplacing core systems (30%workload reduction)(5) S ecuring and training
human resources

Bringing out
the best in
every person
P.52
(6) C
 reating diverse, safe, andsecure workplaces• Acquisition of trust of stakeholders bystrengthening environmental initiatives andimprovement of long-term corporate value• Reduction of GHG emissions at our plants
and reduction of environmental impact on
local communities•R educe environmental impact•R educe GHG emissions• P romote resource-recycling society• L ack of a group of engineers, which
is necessary for establishing an orderbusiness when human resource
development is insufficient• P roductivity decline due to inferior
recruitment of human resources amid theshrinking labor force in Japan• Impact on the physical and mental healthof employees• Stagnation of business activities
due to occupational accidents• Increase in employee engagement• Acquisition of a competitive advantage inproposal-based business• Opportunity to demonstrate organizational
strength through diverse human resourcesin a highly uncertain business environment• Realization of diverse workstyles• Preservation of the physical andmental health of employees• S ecure and train human resources• DE&I• Improve work–life balance•C reate a safe workplace where
employees can work with peace of mind

• Expansion of training (specialized themes
such as harassment, anger management,
mental health, communication, evaluator
training, etc.)• Enhanced career recruitment• Engagement surveys[People]20% employee engagement rate

• Established a health management center
within the Human Resources Department• Expanded rules to make working hours
more suitable, such as regular day shift
work, time off, and interval time
• Formulated Health and Safety Policy• Expanded barrier-free accessibility (atfacilities, etc.)[People]
Strengthen health andproductivity management
initiatives (acquire “White
500” certification)(7) Improvement of productsafety and quality•D istrust in the safety and quality of
products and services•D istrust of QCD/Poor quality• Establish and strengthen trust in QCD• Improve product safety and quality• Established Quality Policy andenvironmental management system(acquired ISO 9001 certification)• Promoted standardization(8) Supply chain management• S tagnation of business activities andnon-fulfillment of contracts due to delays
in delivery•D ecrease of business opportunities due
to delays in environmental and social
practices• Business continuity and strengthening of
the production system• Creation of trustful relationships withbusiness partners• Implement supply chain management•R espect human rights• Formulated Procurement Basic Policy• Formulated procurement guidelines• Held supplier meetings• Conducted CSR procurement
self-assessments[SC]
CSR procurement selfassessments: No suppliers witha score of less than 3.7 points(9) Enhancement of corporate
governance• Lossof opportunities due to lack ofinvestor relations and shareholder relations•D eterioration of the business environmentand stagnation of business due to lack ofgovernance function• Acquisition of trust from stakeholders by
responding to global standards• Increased momentum for strategic change
through appropriate oversight andexecution of responsibilities• S takeholder engagement• Enhance corporate governance• Declared support for TCFD
recommendations• Signed United Nations Global Compact• Reviewed our Code of Conduct• Loss of social credibility due to violationsof laws, regulations, and compliance• Improvement of management andcorporate culture by acting with integrityand ethics in addition to compliance withlaws and regulations• Establishment of a risk management systemthat aligns with management strategies• Adhere to fair trade compliance• Conduct risk management• Maintain soundness of financial capital(10) Risk management

Note: As of fiscal 2023, the goals and KPIs above are for Hirata Corporation alone.

Hirata Integrated Report 2023

• Enhanced risk management system

Comments from Working Group Leaders
Green Factory
Reduction of greenhouse gas emissions at our plants(Scope 1 and 2) and reduction of other environmental
impacts are the main themes of our activities. At present, we are formulating a plan for achieving carbon
neutrality at our plants and conducting concrete
discussions and verification to set reduction targets
by 2030. Although there are many issues to consider,such as how to collect and aggregate data and how
to deal with renewable energy, we will work on it byaggregating wisdom across the Company.

Jo Yoneda

Green Market/Green Product[GMP]
Customer satisfaction survey• Response rate: 90%• Weighted average of survey
results: 4.5 points or more
Continue to report zero
serious accidents caused byproducts

P.56

42

Goals/KPIs* for 2030

•D
 ecrease of business opportunities
and increase of response costs when
we cannot comply with customers’
environmental requirements and industrycode of conduct•R estrictions on business activities due tolaws and regulations

P.51

Strengtheningof ourmanagementfoundation

Efforts implemented(1) R eduction ofenvironmental impact by
the Company and in the
supply chain

P.44

Building of asustainable
society

Working Groups
Green factory (GF)
Green market/Green product (GMP)
Bringing out the best in every person (People)
Supply chain (SC)Corporate governance (CG)[CG]• Zero serious legal violations• Zero key compliance item
violations

Our mission is to contribute to carbon neutrality
through our products and services and to create newcustomer needs in response to social changes.
We believe that these efforts will provide opportunities for us to expand our market and develop new
products. In response to the advancement of digitalization, we will make full use of digital technology to
improve operational efficiency and increase the added
value of our products. We will reflect these activities inour medium- to long-term business strategy and aim
for continuous growth.

Shigeru Maeda

Bringing Out the Best in Every Person
As stated in our Management Philosophy, from thetime of our founding, Hirata has always believed
in nurturing people by taking advantage of theircharacteristics and valuing their growth, and it wants
each person’s life to be wonderful by working for theCompany. In order to achieve this, it is necessary to
first ensure that employees are healthy both physically and mentally, to create a workplace that ensures
psychological safety and a safe working environment, and then to create a system that enables
employees to think about their careers and play
an active role. We are working to clarify issues andthereafter realize more effective initiatives by grasping actual conditions through employee engagement
surveys and promoting dialogue between management and employees.

Miho Mori

Supply Chain
As a global company, Hirata recognizes that supply
chain management has rapidly increased in importance in recent years. We are required to ensure astable supply based on quality, price, and delivery
time and also to practice CSR procurement that fulfills social responsibilities, such as considerations forthe environment, labor (human rights), and ethics.
Although there are many issues to be addressed, we
will work together with our customers and suppliers
to face those issue in earnest in order for each otherto survive and grow over the long term.

Shojiro Hirata

Corporate Governance
We will review and organize the Hirata Group Codeof Conduct to ensure that officers and employees
comply with laws and regulations and act in goodfaith under high ethical standards. In addition, we
have set a goal of zero violations in priority areas andpromote a PDCA cycle (Plan–Do–Check–Act), such as
monitoring, with the aim of gaining high trust andrecognition from stakeholders from all walks of life.

HidekiNinomiya

Hirata Integrated Report 2023

43

Hirata’s Sustainability

Materiality Theme 1 Response to Climate Change
Status of Business Activities and Environmental Impact Environmental Management

Environmental impact in fiscal 2022 was as follows.

Hirata has established environmental policies and promotes environmental activities in line with those policies.
We will contribute to protecting the global environment by reducing the environmental load in all aspects of ourbusiness activities, products, and services.

Input

Energy Usage(Crude oil equivalent)*1 3,952 kl

Environmental Policy
Hirata Corporation contributes to protecting the global environment by reducing the environmental load in all aspectsof its business activities, products, and services in order to achieve a sustainable society.
(1) We lower the environmental load of our products
by considering each phase of a product’s life cycle
throughout our supply chain, from raw material
sourcing to design, production, transportation, use of
the product, and its disposal after use.
• Making products that save more energy when in use• Designing and manufacturing products to be recyclable at
disposal• Reducing the amounts of harmful materials used in our products and using substitutes(2) We abide by environmental laws, treaties, requirements, and voluntary standards as needed. We also
develop coordination and cooperative relationships
with relevant government agencies and contribute to
local communities.(3) We strive to improve productivity and conserve theenvironment throughout all our business activities
and production processes, including sales, design,
manufacturing, installation, and after-sales services. • Reducing energy usage and emissions of greenhouse gases• Reducing waste and promoting recycling• Reducing harmful materials and using substitute articles• Preventing environmental problems and accidents• Preserving biological diversity

Design and Development
Procurement

Gasoline

3 kl

Kerosene

10 kl

Light oil

11 kl

LP gas73 t

Electricity

15,205 MWh

Production
Processing
Coating
Assembly

5,031 t-CO2

Waste
Industrial waste

460 t

General waste

32 t

Valuable resources

790 t

Groundwater

28,974 m3

TolueneClean water

5,536 m3

1, 2, 4-Trimethylbenzene
0.5 t

Chemical Substances(5) We review our EMS regularly to enhance environmental performance while striving for continuous
improvement.

Co2 Emissions*2

Chemical Substances(PRTR substances)

Water Resources(4) We increase environmental awareness by implementing educational and publicity activities.

OutputHirata Corporation Business Activities

PRTR Substances

2.9 t

Xylene

0.5 t

Other

0.6 t

4.5 t

*1 Energy usage calculated using method based on the Energy Conservation Law*2 CO2 emissions associated with power consumption calculated based on basic emission factors from electric power companies
Note: The above data is on a non-consolidated basis.

Environmental Management Promotion Framework 

Environmental Goals 

Having put in place an environmental management system(EMS) promotion framework led by top management
and environmental management managers, we obtainedinternational standard ISO 14001 certification at ourKumamoto, Kanto, and Kansai plants.

Representative Director, President
No.

Item

Environmental management managers
Secretariat: Quality Control Department

Reducing
energyusage

ISO monitoring team

ISO Committee members: Division directors,
Business unit general managers, divisional heads
1

Personnel responsible for ISO management

Preventionof global
warming

Environmental Accounting 

Reducing
CO2
emissions

The environmental preservation costs for fiscal 2022 were as follows.
(Unit: Thousands of yen)

Item

Major Initiatives

Cost of preventing pollution• Installation of warehouses for hazardous materials

Global environmental protection cost
Cost of resource recycling

Cost
16,753• Introduction of energy-saving equipment

163,888

172,107• Disposal of general and industrial waste−

58,140

Upstream and downstream costs• Investigation of chemical substances contained in products

−

6,428

Administration costs• Installation of energy measurement units• Maintenance of environmental management system• Environmental measurement• Environmental education

400

44,148Social activity costs• Environmental preservation and beautification• Donations to environmental protection organizations

−

2,422

168,295

299,998

Total
Note: The above data is on a non-consolidated basis.

44

Investment
4,007

Businessarea costs

Hirata Integrated Report 2023

Goals

FY2022 Accomplishments*

By the end of fiscal 2023, we will have
reduced the amount of energy used
by 3% or more compared with that of
fiscal 2020 when measured based on theactual production amounts.

Energy usage decreased by
12.8% in comparison withactual production
Reduced due to the installationof energy-saving equipment suchas electric forklifts and highefficiency air-conditioners, and theincrease in production output

To promote thereduction of energy
consumption throughthe introductionof energy-saving
equipment, such as
high-efficiency airconditioners and energysaving control devices

CO2 emissions decreased by
23.2% in comparison withactual production
Decreased due to a decreasein energy consumption and adecrease in greenhouse gas
emission factors from electric
power companies

To strive to reduce CO2
emissions by reducing
energy consumption

Water usage decreased by
24.7% in comparison withactual production
Reduced due to an increase inproduction output

To work to reduce water
usage by reviewing
equipment that uses
water

Industrial waste generation
decreased by 16.2% incomparison with actual
production
Reduced due to a decreasein waste oil discharge and anincrease in production output

To work to reduce theamount of industrial
waste generated byexpanding the use of
returnable boxes

Chair of ISO Committee

Reducing
water
usage

2

Effective useof resources

3

Reductionof industrial
waste
generation: Achieved: Nearly achieved* Scope: Hirata Corporation only

Goal for fiscal 2022
2% reduction in energy usage comparedwith fiscal 2020
By the end of fiscal 2023, we will have
reduced the amount of CO2 emissions
by 3% or more compared with that of
fiscal 2020 when measured based on theactual production amounts.
Goal for fiscal 2022
2% reduction in CO2 emissions comparedwith fiscal 2020
By the end of fiscal 2023, we will have
reduced the amount of water used by
3% or more compared with that of fiscal
2020 when measured based on theactual production amounts.
Goal for fiscal 2022
2% reduction in water usage comparedwith fiscal 2020
By the end of fiscal 2023, we will have
reduced the amount of industrial waste
generated by 3% or more compared withthat of fiscal 2020 when measured basedon the actual production amounts.
Goal for fiscal 2022
2% reduction in industrial waste
generation compared to fiscal 2020

Evaluation

FY2023 Target: Underachieved

Hirata Integrated Report 2023

45

Hirata’s Sustainability

Materiality Theme (1): Response to Climate Change

Approach to Resource Recycling 

Reduction of Environmental Impact by the Company and in the Supply Chain
Changes in Energy Consumption/CO2 Emissions 
The Company is working to rationalize its energy use basedon the Act on the Rational Use of Energy and Shifting to
Non-fossil Energy (Energy Efficiency Act). In fiscal 2020,
operations started in the new headquarters factory area in the
Kumamoto Plant, so both energy consumption and energy
consumption per unit of output increased significantly. In
our environmental targets, we set a 3% reduction in energy
consumption intensity by fiscal 2023, using fiscal 2020 as thebase year. In fiscal 2022, energy consumption was reducedby 12.8% in comparison with actual production, using fiscal
2020 as the base year, due to the introduction of electric
forklifts and high-efficiency air-conditioners, and increased

production output.
In terms of environmental targets concerning CO2 emissions, for which we also deem fiscal 2020 as the base year, we
adopted a 3% reduction in CO2 emissions per unit of production by fiscal 2023. In fiscal 2022, CO2 emissions were reduced
by 23.2% compared with actual production output due toreduced energy consumption and a decrease in CO2 emission
factors (basic emission factors) from electric power companies.
In addition, the Sustainability Promotion Committee is discussing medium- and long-term initiatives, and concrete measures
will be reflected in the future.

Energy Usage

CO2 Emissions(kl)

(kl/million yen)

8,000

0.07370.06200.08

0.0723(t-CO2)(t-CO2/million yen)

12,000

0.118

0.107

4,013

4,169

0.084

5,798

0.04
4,000

3,812

4,014

3,834

274

121

0.04

6,163

0.02

5,299

2,834

0

5,995

3,775
201

155

118

685
0

0

2018
2019
2020
2021
2022
(FY)
Fuel consumption (kl)*Electricity usage (kl)*Energy usage per unit of output (kl/million yen)
* Calculated using the fuel and electricity conversion factors from the Act on the Rational
Use of Energy and Shifting to Non-fossil Energy
Note: The above data is on a non-consolidated basis.

Raw materials

Recycling
Improvement in recycling rate
in cooperation with waste
disposal companies

2018

294

499

2019

2020

Landfill
disposal

4,753

381

278

2021

2022

0
(FY)

CO2 emissions (t-CO2): FuelCO2 emissions (t-CO2): Electricity*
CO2 emissions per basic unit (t-CO2/million yen)
* Based on power usage, CO2 emissions calculated using basic emission factors
published by electric power companies
Note: The above data is on a non-consolidated basis.

Efforts to Reduce Industrial Waste Output 
The industrial waste generated by the Company mainlycomprises wood chips, waste plastics, and waste oil.
Used to package deliveries to the Company, wood chips
and waste plastics are disposed of as waste after u­ npacking.
For this reason, we are working to reduce the amount ofwaste generated by reviewing and simplifying the packaging methods for some equipment imported from overseas
suppliers.

Industrial Waste Output(t)

(t/¥100 million)

109.1

60,00063,0808,244

61.3
54,374
8,592

40,00054,83620,00045,78240,5368,550
31,98656.1

35,365
6,862

34,5105,536

28,503

28,974

0

60
40
20

229

142

123

93

138

197

187

0.4

0.2

0

Managing Hazardous Substances 
To respond to chemical substance-related laws and regulations in Japan and overseas, including the European RoHS Directive*1
and REACH Regulations,*2 we are strengthening the management of the chemical substances contained in our products.
We ask our suppliers to submit information through chemSHERPA*3 and cooperate with our surveys on the chemical
substances contained in our products. We will continue to work on managing the chemical substances contained in our
products.

0

2018
2019
2020
2021
2022
(FY)
Groundwater usage (m3)Clean water usage (m3)Amount of water usage per ¥100 million of actual production (m3/¥100 million)
Note: The above data is on a non-consolidated basis.

197

118

456
24

Wood chip waste output (t)Waste plastic output (t)Waste oil output (t)Output of other waste materials (t)Amount of industrial waste output per ¥100 million of actual production(t/¥100 million)
Note: The above data is on a non-consolidated basis.

80

74.5

83

125

460
12

2018
2019
2020
2021
2022
(FY)

100

80,000

381
3
98

486
13

0

120

112.8

100,000

Hirata Integrated Report 2023

141

216

(m )(m /¥100 million)
3

0.8

0.6

115

120,000

0.748

600

200

3

0.791

0.790

490
17

Water Usage

0.893

0.847
800

Efforts to Conserve Water Resources 

46

1.0

1,000

400

To conserve water resources, the Company is reducing
water usage and monitoring factory wastewater.
We conduct analyses of the wastewater from all ourplants every year and respond to any abnormalities.

After use

Waste

6,376

4,068

Finishedproducts

Assembly

Products

Recycling

5,031

2,955
3,313

Suppliers

0.08

6,848
3,952

Designing of products thatfacilitate recycling

Processing

0.082
8,000

2,000

Naturalresources

Materials

0.12

0.111

0.06

3,587

Reducing use of natural
resources by addressing eachstage in product life cycle

0.06430.0613

6,000

4,000

To help realize a sustainable society, we are working to create products that show we have given consideration to resource
recycling at each stage of the product life cycle (the procurement of materials and parts, design, production, and disposal
after use). Through eco-friendly design, we are promoting the reduction of raw materials used in product manufacturing andthe provision of products that can be recycled at the time of disposal. We are also working to reduce the packaging materials
for some equipment imported from overseas suppliers, reduce waste in production activities, and promote recycling.

*1 Regulations on hazardous substances in the European Union*2 Chemical substance management regulations in the European Union*3 Format for providing data on chemical substances contained in products in a supply chain

Hirata Integrated Report 2023

47

Hirata’s Sustainability

Materiality Theme (1): Response to Climate Change

Scenario Analyses Results

Disclosure Based on TCFD Recommendations
In 2022, the Group announced its endorsement of the recommendations of
the Task Force on Climate-related Financial Disclosures (TCFD) and released
information on climate-related risks and opportunities based on the TCFD
recommendations. Going forward, we will continue to enhance climatechange-related information disclosure and strive to further increase ourcorporate value by resolving social issues and growing our business.

Based on the aforementioned 1.5°C Scenario, the Group recognizes that, while business opportunities will increase due toincreased demand for energy-saving products, the impact of physical risks will increase in the 4°C Scenario.
Based on the results of these analyses, the Group will sequentially verify initiatives for maximizing opportunities while
addressing recognized risks, starting with those with the highest feasibility, and promote the reflection and integration of
those initiatives into management strategies.
Opportunities

Governance 
Based on our Sustainability Basic Policy, we have establishedthe Sustainability Promotion Committee to promotesustainability management, including climate change.
The committee is chaired by the president, with internal
directors serving as committee members. Furthermore, inorder to enhance opinions from an external perspective andlead to deeper discussions, outside directors are allowed
to attend the meetings of the Sustainability Promotion
Committee as observers. The Sustainability Promotion

Committee submits proposals, reports, and provides
information. The Committee will also be subject to regular
oversight by the Board of Directors.
The Sustainability Promotion Committee discusses targets
and plans to support the sustainable growth of the Groupand aims to enhance opportunities for more proactive
discussions on climate change countermeasures in light ofour business activities.

Main
Category

items to the Hirata Risk Map on which the Company's
risks are listed and strengthened cooperation with thedepartment in charge of risk management.

Strategies Through scenario analyses, in fiscal 2021, the Group
ascertained the changes in the Group and its customers’
industries in 2030 and 2050—under the 1.5°C and 4°C
scenarios, based on scientific information such as thatfrom the International Energy Agency (IEA)—and analyzed
climate change risks and opportunities.
Based on the results of the analyses, we worked to
expand energy-saving products and reduce physical risks.
Specifically, we expanded the product lineup of our Eco

Demand tosave labor

1.5°C
In accordance with energy-saving
policies and rising temperatures,electrification and automation atcustomer factories will advance,and demand for products that raise
productivity and improve energy-saving
performance in factories and at facilities
will increase
In accordance with declining laborproductivity due to rising temperatures,
demand for labor-saving and efficiency
improvement at production sites will
increase

Risks

Risk Management 
The Sustainability Promotion Committee identifies, assesses,
and manages risks related to climate change.
We added climate change and other sustainability-related

Products
that savemore energy

Developmentof energysaving
products

Details of Opportunities

MiddleCategory

Main Category

Electric Series and made advance arrangements to reduce
procurement risks.
In particular, for our Eco Electric Series (see page 50), we
will implement initiatives that will lead to the realizationof carbon neutrality worldwide, including within the
Company, such as reducing CO2 emissions at plants byapproximately 75%.*

Degree ofimpactDetails of risks

MiddleCategory

Countermeasures

4°C

Large

Small

• Expand local production for local consumption businessmodels, such as local manufacturing and sale of parts andrepair parts that have already started in some regions, andconsolidation of production bases• Introduction of eco-friendly electrification products anddesign and development of products for which lightness andlongevity have been taken into account, etc.

Small

Small

• Development of products for automated warehouses,
automated guided vehicles, etc.

Degree ofimpact1.5°C

4°C

Medium

Small

Small

Small

MediumSmall

Countermeasures

Transition risks
CarbonpricesRawmaterial
costs

Scope 1, 2

Scarceresources

Cost of plastic

Increase in manufacturing costs due tointroduction of carbon taxes in eachcountry, emissions trading, and bordercarbon adjustment measures
Increased procurement costs due torestrictions placed on raw materials andpurchases due to emission regulations
Increased costs for materials containing
plastic due to regulatory restrictions
placed on their use and requirementsthat recycled plastic be used

Electricity
costsElectricity costs are increasing due todecarbonization of the Company’splants and offices as well as
popularization of renewable energy

Airconditioningcosts

Due to rising temperatures, operating
rate of air-conditioning in plants, etc.,
rises, and thus air-conditioning costs
increase

Distribution
costs

Distribution costs rise due to shift toelectric vehicles (EVs) for large vehicles

Restoration/
operatingcosts

Increasing costs from expenses forrestoring equipment following theeffects of abnormal weather, etc.

* Compared with our previous products

Energy costs• Setting of carbon emission reduction targets such as carbonneutral declarations• Ascertaining of Scope structure for carbon emissions,building a monitoring system, etc.
• P romoting the reuse and recycling of equipment and parts
through remodeling and repair services, including renewal of
aging robots, etc.
• In addition to reviewing excessive packaging in productpackaging, reducing the amount of plastic used by switching
to recycled paper and returnable boxes, etc.

• Promotion of energy saving by installation of LED lighting, etc.
• Examining installation of in-house power generationequipment (solar power generation equipment) and theutilization of leasing services
Medium Medium • Introduction of optimal operation by means of energy
management systems, starting with buildings and plants
where said systems are already be installed or considered,and gradual expansion to locations places where not yet
introduced, etc.
• Operational improvements, including ventilation reviews,
measures against air leaks, and measures to shade external
Small
Small
air-conditioning units• Installation of energy-saving air-conditioning equipment, etc.
• Consolidate production bases and expand initiatives withcustomers (OEMs) for joint transportation in some businesses
to streamline interfactory transportation
Medium Medium• Examine expansion of streamlining of distribution bymultidrop (milk run) shipments of goods to suppliers in theregion, etc.

Physical risk
Physical
costs

Small

Large

• Implementation of risk reduction through multiple purchasing•A dvance arrangements, appropriate inventory management,
and thorough operation in line with business content so thata certain level of production activity can be carried out even if
supply is interrupted, etc.

Indicators and Targets Curbing global warming by reducing CO2 emissions is
becoming an essential activity for realizing a sustainable
society.
In order to curb global warming, we aim to achieve net
zero CO2 emissions (Scopes 1, 2, and 3) from our businessactivities by 2050 (carbon neutrality).

48

Hirata Integrated Report 2023

In order to achieve this target, we are considering theformulation of intermediate targets, reduction plans, andreduction measures. We are also considering a plan toprioritize our supply chain CO2 emissions (Scope 3) in thehigh-emission categories.

Hirata Integrated Report 2023

49

Hirata’s Sustainability

Materiality Theme 2 Building of a Sustainable Society

Materiality Theme (1): Response to Climate Change

Contribution to Carbon Neutrality through Products and Services

Creation of New Customer Needs in Accordance with Social Changes

As the importance of environmental considerations increases, the development and provision of products andservices that reduce CO2 emissions and power consumption from factories is one of the most important issues.
Since our customers and other stakeholders have many needs for eco-friendly products
and services, we see the expansion of the carbon-neutral market as an opportunity tocontribute to carbon neutrality and sustainable manufacturing through our products
and services.

Currently, we are contributing to carbon neutrality by providing production systems to the EV market, including
hybrid vehicles.
It is expected that global needs for the realization of a sustainable society will continue to grow. However,
it is necessary to build a system that responds to the possibilities of being significantly affected by the policies
of each country and which responds to the diversification of needs. The Green Market/Green Product working
group led by the managers of the sales divisions of each business division conducts market research and otheractivities to accurately and quickly grasp market needs from a medium- to long-term perspective while paying
attention to the global situation.

Hirata Eco Electric Series 
In the automotive field, moves to shift from internal combustion engines to electric vehicles (EVs) are rapidly progressing on a global scale. In terms of production, there is a
shift from pneumatic systems, which emphasize power andemit a large amount of CO2, to electric systems, which areenvironmentally friendly and safe. Based on its track recordin various industrial fields, Hirata provides ­non-pneumatic,
safe production equipment by realizing all-electric transport, which is the basis of the production system, andcontributes to the realization of factories that do not placea burden on the environment.

Efforts to Address Needs along with Rising Environmental Awareness 
At present, we are catering to the energy-saving needs ofour customers’ factories by developing and expanding salesof environmentally friendly products with a focus on the
Eco Electric Series. In promoting efforts toward a sustainable society throughout the supply chain with customers

Respond to Progress of Digitalization
We are working to improve operational efficiency by reforming our value chain through the use of digital technology and introducing new core systems. Also, we actively support the digitalization of our customers’ production sites and exchange opinions with other companies to accelerate innovation and contribute to the smart
manufacturing industry as a whole.

The Eco Electric Series is Hirata’s all-electric transfer system that is people-friendly and environmentally friendly.
01

02

03

No pneumatics makes the system
environmentally friendly

Low thrust makes thesystem safe

Reliability andperformance

Compressors account for 25% of power
consumption at factories. The Eco electricseries reduces power consumption byapproximately 75% compared with ourconventional products because it does
not require pneumatics, reducing CO2
emissions.

The Eco Electric Series does not requiresafety-related equipment such as safety
fences and light curtains because of its low
thrust, allowing people to work together.
While maintaining the required speed, it
achieves a high level of safety that can be
stopped with the force of one hand in theevent of an emergency, such as a collision.

It has been certified as a designated product by major automobile companies inJapan and overseas with more than approximately 29,000 units delivered.

Hirata BLUE MOTOR
The Heart of the Eco Electric Series
Hirata BLUE MOTOR is a compact, high-efficiency brushless
DC motor developed in-house for the Eco Electric Series.
This compact yet powerful motor is installed in the
Eco Electric Series and contributes
greatly to energy-saving performance. It is compatible with various
standards, such as UL certification,and can be used globally.

and suppliers, we recognize that accurate measurement of
Scope 1, 2, and 3 emissions and calculation of CO2 emission reductions through environmentally friendly products
and other initiatives are important issues that are being
discussed by the working group.

Approximately

75%*

1

Approximately

75%*

CO2
Power use

CO2 emissions

Topic
Creation of SDGs-relatedIntellectual Property

1

We are promoting the developmentof technologies that contribute tosolving social issues, including the
SDGs. Of the 272 patents registeredand pending in Japan for which theCompany (including joint applications) is the applicant, 169 patents*
are related to the SDGs, accounting
for about 62% of the total. We willcontinue to develop technologies that
contribute to solving social issues andpromote the appropriate management and utilization of intellectual
property.
* As of September 2023

Total number of Hirata’s
SDGs-related patents

Total numberof Hirata’s
SDGs-related
patents:169

 ote: Created by Hirata using
N“Visualization of SDGs-related
Technologies” provided by theIntellectual Property AI ResearchCenter of the Japan Patent Information
Organization (JAPIO)

1

11

15

131

8

2

1

*1 Compared with our similar conventional system. The reduction rate shown here is the representative value to describe thefeatures of the Eco Electric Series as a whole.

Further Expansion of the Eco Electric Series
In addition to the existing lineup, we are working to expand the Eco Electric Series for use in growth fields and make it applicable for use in key devices.
F or more information, please visit the
Eco Electric Series website.
https://hirata-ecoele.com/en/

50

Hirata Integrated Report 2023

Hirata Integrated Report 2023

51

Hirata’s Sustainability

Materiality Theme 3 Bringing Out theBest in Every Person
In the Medium-Term Management plan (FY2022–FY2024), we returned to our founding principles and Management
Philosophy. We decided on Jin-Gi-Kou-Ken as a slogan from our desire to contribute to society by means oftechnology as well as to make everyone involved in Hirata content. Aiming to improve both its corporate value andemployee engagement, the Group is actively working to promote the creation of environments in which each andevery employee can make the most of their expertise and individuality while they and the Company grow together.
We believe that creating a virtuous cycle through initiatives aimed at securing human resources, developing
human resources, and creating environments that bring out the best in every person will result in higher employee
engagement.

人技貢献

To make everyone involved in Hirata content andcontribute to society by means of technology
Improvements in corporate value/
Corporate growth

Strategic securing of human resources
with the aim of improving
corporate value

Improvements in employee
engagement

Strengthening of human resource
development and creation ofenvironments in which employees
can continue to take on challenges

Support for active participation ofdiverse human resources
Creation of workplaces where people
can work with peace of mind

Internal Environment Development Policy

Under the slogan Jin-Gi-Kou-Ken, which was formulated as theCompany’s vision, we aim to develop human resources who
continue to learn independently and come together to take onchallenges.
Specifically, we provide rank-specific training and technicalspecialized training tailored to each employee’s experience andskills so that each employee can take on challenges by making themost of their expertise and individuality.
The Company is also working to expand its self-development
support system by encouraging employees to learn autonomously
and introducing e-learning by hierarchy and theme. Hirata will
also focus on developing global human resources through thetraining of next-generation management candidates, assigning
employees to overseas Group companies, technical training, andpersonnel exchanges.
In addition, we will continue to strengthen our initiatives
by regularly reviewing our training programs and invigorating
personnel exchanges and transfers with the aim of deepening
mutual understanding and further strengthening cooperation.

We aim to create an environment where employees with diverse
careers and social backgrounds (gender, age, nationality, disability,
lifestyle, etc.) can experience growth through their work, workwith satisfaction and pride, and feel happy. Specifically, we areworking on introducing teleworking to realize flexible workstyles
that are not bound by time or place.
In order to support employees’ self-directed careerdevelopment, we will promote job rotation, expand follow-up andcareer interviews after joining the Company, and build evaluationand compensation systems that enable employees to feel a senseof satisfaction and fulfillment from their work.
Additionally, we place the highest priority on the healthand safety of our employees, their families, and many others
involved in the Company, and we are also focusing on healthmanagement. We will strengthen initiatives such as realizing awork–life balance by reducing overtime work, strengthening thehealth management center system, and providing various healthrelated programs for employees and their families.

Human Resource-Related Data
FY202252

FY2022

21.5%

Childcare leave acquisition rate (Companywide)

54.3%

Ratio of female employees to male employees

17.3%Childcare leave acquisition rate (male employees)

46.7%

Ratio of women serving as section heads

12.4%

Childcare leave acquisition rate (female employees)

100%

Ratio of women in managerial positions

5.2%

Average overtime hours of employees per month

20.8 hours

Average length of service of male employees

18.3 years

Average length of service of female employees

18.2 years

Hirata Integrated Report 2023

Percentage of annual paid leave taken

Under our Management Philosophy of “Bringing Out
the Best in Every Person,” we believe that creating anenvironment in which each and every employee cangrow and maximize their abilities is the most importantmanagement issue, and we are working to strengthen
support for human resource development. Because of thehigh importance of rank-based training, we have set atarget of 100% participation rate among the employees.
Going forward, we will reallocate human resources
to focus businesses to achieve our Medium-Term
Management Plan and aim to develop the human resources
necessary for our growth from a long-term perspective.

By means of training programs that support the careersof diverse human resources and promoting the activationof staff change rotations and reviews with regard toevaluations, we will encourage not only human resources
who possess high technical skills and expertise but also thecontinuous development of global human resources andmanagement human resources. In addition, by enhancing
our self-development support system, we will actively work
to foster environments and the climate in which each andevery employee can pursue their own dreams and goals,
improve their personalities and abilities, and continue tochallenge themselves to reach their potential.

Support for Active Participation of Diverse Human Resources Human Resource Development Policy

Ratio of women to people hired

functions and functions where there is a shortfall, such as
in human resources with digital technology expertise andbusiness creation as well as management human resources.
To expand our business in growth markets and enhance ourability to respond to changes in the business environment, we
will also actively recruit diverse human resources regardlessof gender, age, nationality, religion, or whether they have adisability.

 trengthening of Human Resource Development and Creation ofS
Environments in Which Employees Can Continue to Take On Challenges 

Jin-Gi-Kou-Ken

Our Company Vision

Strategic Securing of Human Resources with the Aim of Improving Corporate Value While each and every employee has been making the most of
their expertise and individuality, the Group has been facing thechallenges of new businesses, technical innovation, high-set
goals, and issues that have led to sustainable growth.
To further improve our sustainable corporate value andachieve our management strategies, we will work to recruit,
train, and relocate highly specialized human resources tostrategically secure human resources for the necessary

68.6%

We are strengthening our DE&I-related initiatives andsupporting the active participation of diverse humanresources as activities of the Bringing Out the Best in Every
Person working group.
By respecting the values of each and every employee,increasing their motivation, providing them with aplace where they can make the most of their abilities
and individuality, and bringing together their diverse
strengths, we will actively work not only for the wellbeing of employees but also for the development of theorganization and the sustainable growth of the Company.

Creation of Workplaces Where People Can Work with Peace of Mind 
Giving top priority to health and safety, the Company
has implemented a raft of measures to ensure that its
employees remain healthy and active and to improve theirwork–life balance.
We established health management centers, which are
working on initiatives aimed at health management. The
centers are staffed by professionals with public healthnursing qualifications and have consultation desks formental and physical health.
Additionally, we strengthened our consultation system
for mental and physical health by increasing the number ofcontracted industrial physicians and signing new contracts
with clinical psychologists.
To improve work–life balance, we are also creating
systems and implementing measures to realize diverse
work-styles.
We will continue to focus on creating a work
environment and culture that enables employees toachieve a work–life balance in line with the wishes of each
employee, such as raising the rate of male employees

taking childcare leave, actively participating in malechildcare, volunteer activities, and health promotion.
Summary of Previous Measures
FY2015• Ban on working on legal national holidays• Ban on overtime work on Wednesdays, the designated day when all employees leave
work on time
• Ban on overtime work after midnight• Annual paid leave can be taken in one-hour units

FY2016• Salary and bonus payment days are also on days when employees leave work on time
• Overtime management changed from 30-minute unit increments to one-minute unit
increments• Expanded the scope of shortened working hours for childcare to employees withchildren up to the third grade of elementary school

FY2018• Introduction of interval system

FY2020• Established health management centers

FY2021• Reduced prescribed working hours from eight hours to 7.5 hours• Began application of shift work on days when employees leave work on time
• Systematic implementation of telecommuting

FY2022• Number of annual paid leave days required to be taken increased to eight days
• S tarted operation of new sick and leave system“Unused annual leave and sick leave system” changed to "Uniform 40-days system”• Converted menstrual leave into wellness leave, with a maximum of 12 days off
per year

FY2023• Number of annual paid leave days required to be taken increased from eight days
to 10 days
• Ban on working on holidays (in principle)• Expanded wellness leave (for treatment of diseases designated as intractablediseases, cancer treatment, dialysis treatment, fertility treatment, etc.)
Work–life
balance support

Hirata Integrated Report 2023

53

Hirata’s Sustainability

Materiality Theme (3): Bringing Out the Best in Every Person

Health and Safety Policy 

Respect for Human Rights

Based on its Sustainability Basic Policy, the Hirata Group engages in the following with the participation of all employees toensure the health and safety of all people involved in the Group.

Based on our Sustainability Basic Policy, the Hirata Group established a global human rights policy in fiscal 2022
to respect the basic human rights of all people involved in its business. Established by resolution of the Board of
Directors, we apply said policy to all officers and employees of the Group. With regard to our efforts to respecthuman rights based on our global human rights policy, we have established our guidelines for respecting humanrights, referring to the JEITA Guidelines for Responsible Corporate Behavior, etc., and we ask all our business
partners, including our suppliers, to support and implement them.

• We will give top priority to health and safety while striving to develop and improve our occupational health andsafety management system.
• We will work to prevent accidents and disasters by conducting risk assessments, making improvements based on the
results, and providing health and safety education.
• We will remain in compliance with occupational health-and-safety-related laws and regulations and the health andsafety rules set by each Group company.
• Promoting the manufacture of safe and secure products, we will meet the expectations of our stakeholders.

Basic Approachto HumanRightsHealth and Safety Promotion System Based on its Health and Safety Policy, the Company has
formed health and safety committees at all of its business sites, as is required by law. We have also formed a
Companywide health-and-safety committee to investigate
and deliberate on health and safety management on a
Companywide basis while promoting health and safety.

In accordance with the size of its workforce, each plant’s
health and safety committee appoints generalist health andsafety managers, specialist safety managers, and healthmanagers as well as industrial physicians and other relevant
personnel.

Representative Director, President

Companywide Health and Safety Committee

Health and Safety Committee Office

Kumamoto Plant
Health and Safety
Committee

Kumamoto East Plant
Health and Safety
Committee

Shichijo Plant
Health and Safety
Committee

Kansai Plant
Health and Safety
Committee

Kanto Plant
Health and Safety
Committee

Collaborating company health andsafety committees

54

Hirata Integrated Report 2023

Human
Rights Policy(Items Only)(1) Prohibiting Forced Labor(2) Prohibiting Child Labor(3) Decent Working Hours(4) Adequate Wages andAllowances(5) Prohibiting Inhumane
Treatment(6) Prohibiting
Discrimination(7) F reedom of Association
and Right to Collective
Bargaining(8) O ccupational Health and
SafetySystem for Respecting Human Rights As part of our efforts to build a system for respecting
human rights, we have appointed a human rights awareness promotion supervisor and a human rights awarenesspromotion officer at our three bases in Kumamoto (and theTokyo office), Kanto, and Kansai in fiscal 2023. Each humanrights awareness promotion supervisor and human rights
awareness promotion officer is responsible for planningand implementing human rights education at each site,
conducting and verifying assessments, implementing andverifying corrective measures against identified risks, andinstilling human rights policies and guidelines to suppliers.
Furthermore, the personnel in charge of promoting humanrights awareness at each site also serve as a human rights
consultation desk within the Company, striving to create aculture in which all employees can easily consult with theCompany on human rights issues.
Human Rights Promotion System
Board of Directors
Head of Administration Division

Headquarters/
Kumamoto Plant
Human Rights AwarenessPromotion Supervisor

Kanto Plant
Human Rights
Awareness Promotion
Supervisor

Kansai Plant
Human Rights
Awareness Promotion
Supervisor

Human Rights Due Diligence 

Health and Safety Initiatives Based on annual plans, the Companywide Health and
Safety Committee’s remit includes reporting on thestatus of implementation of health and safety promotion
measures, discussing measures to prevent the recurrenceof accidents, as well as the drafting and setting of rules
governing health and safety. Carrying out and improving health and safety patrols and conducting kiken yochi(hazard prediction) training (KYT) at each site, the healthand safety committees at each factory work to ensure
safety. Safety patrols of each factory are also conducted bydirectors every year, and strict checks are carried out fromthe perspective of management.
In fiscal 2022, we conducted in-house KYT trainer training and forklift training
to prevent accidents.
However, accidents
resulting in lost workdays
occurred, significantly
increasing the ­frequency
rate of lost-time
accidents.

Complying with the laws and regulations applicable to Japan and the countries and regionsin which it conducts business, the Hirata Groupsupports and respects the Guiding Principles
on Business and Human Rights of the United
Nations and other international norms withregard to respect for human rights.

In fiscal 2023, we are reviewing the procedures for occupational health and safety risk assessments and reassessing
and improving risk management at each site in order toachieve a zero lost-time accident frequency rate.
Occupational Accident Status(Number of accidents)

(%)

6

1.2
1.18

5
4

1.0
0.79

3
2

0.40

0.39

2

1

1

1

2020

2021

0.6
0.4
0.2

0

0

2018

0.00
2019

Number of accidents resulting in lost workdays
Lost workday injury frequency rate (%)
Note: The above data is on a non-consolidated basis.

2022“Regular education on human rights” and “Education on
anti-discrimination for all employees, including migrant
workers.”
If appropriate corrections are not taken, there is concernof the negative impact on human rights through our business activities. As a result, we are currently taking corrective
measures. Specifically, we will conduct training for all
employees to which the two items above are applicable byMarch 2024.
We plan to conduct human rights assessments every
other year.

Initiatives for the Next Fiscal Year and Beyond 

0.8
3

Following the formulation of the Global Human Rights
Policy in fiscal 2022, the following initiatives were implemented in fiscal 2023 as part of human rights due diligence.
• We have formulated and expanded our human rights
policy guidelines to promote the spread of our global
human rights policy throughout the Company• Conducted human rights assessment of Hirata c­ orporation(the fiscal 2023 assessment did not include subsidiaries or
suppliers.)
As a result of the assessment, out of all 43 items to
be checked, two items were judged to be inadequate:

0(FY)• We will expand the scope of our human rights assessment to include consolidated subsidiaries.
• In order to identify negative human rights impacts
throughout the supply chain, suppliers (who meet certain
requirements) will also conduct assessments.
• We will continue to provide human rights awarenesseducation at Hirata Corporation and its consolidated
subsidiaries.
• The Hirata Group Code of Conduct, which was formulated during fiscal 2023, will also clearly state respect forhuman rights.
etc.

Major Guidelines Referred to in Conducting Human
Rights Due Diligence, Including for the Establishmentof Our Global Human Rights Policy• United Nations Universal Declaration of Human Rights• United Nations Guiding Principles on Business and Human
Rights• United Nations Global Compact, ILO International Labor
Standards• JEITA Responsible Business Conduct Guidelines (ver. 1.1)
• OECD Guidelines for Multinational Enterprises, OECD Due
Diligence Guidance for Responsible Business Conduct, etc.

Hirata Integrated Report 2023

55

Hirata’s Sustainability

Materiality Theme 4 Strengthening of Our
Management Foundation
Specific QMS Efforts 

Improvement of product safety and quality
As the best partner for our customers, we will endeavor to deliver trustworthiness and satisfaction to the wholeworld, being sure to embody various requests for safety, quality, and productivity.

Quality Management We have in place an ISO 9001-based quality control system that includes the promotion of measures to improve product safety.
We strive to improve quality, productivity, and customer satisfaction (CS) through continuous improvement of our quality
management system (QMS).
(1) Provision of products andservices that satisfy ourcustomers• Improving technology and providing safe and highly productive products• Confirmation of contract details and sharing of information in documents• Establishment of system for handling complaints and thorough prevention of any recurrence• CS improvements(2) High-quality manufacturing•R eliability-ensuring designs based on theories and principles (reliability engineering)•R eduction of quality risk through design reviews, verification, and validation•C ompliance with laws, regulations, and standards•R eflection of product safety and Hirata Standard (Hirata internal standards) in products• P roduct perfection improvements by inspection standard clarification• T horough supplier and design change management• Improvements in management/enhancement activities and problem-solving capabilities using
statistical management methods(3) Establishment of standardizationand commonality in high-mix,
low-volume production• P romotion of standardization• P romotion of commonality of parts• P romotion of unitization• P roactive development and management of products (mass-produced products)

QualitypolicyUtilization of PDCA Quality Management System
Having obtained ISO 9001 certification, we promote
standardization by establishing procedures for eachprocess from order acceptance, design and development,
procurement, manufacturing, and assembly to shipping
and packing to stabilize quality and prevent defects. In
addition, we carry out activities with an awareness of a
PDCA cycle, including monitoring of quality conditions
such as complaints and continuous improvement based on
the results of activities such as customer satisfaction (CS)surveys and management reviews.

Knowledge Acquisition That Leads to Improvements in Quality Awareness and Product Reliability 
We deliver trustworthiness and satisfaction to ourcustomers. With this in mind, we plan and implementa range of educational programs that lead to improved
quality awareness and product reliability. Basic productsafety education is conducted annually by qualified safetyassessors (Company employees) by means of case studies.
In fiscal 2022, we held seminars on CE (Europe) and UKCA

Program name

Representative Director, President

Quality control managers

In addition to acquiring basic knowledge about ISO 9001, this program deepens
understanding of ISO, such as the effects of unifying business processes and theimportance of a PDCA cycle.

34

QC Methodology Education(Reason Analysis, 7 QC Tools)

For acquiring skills in analyzing collected data, analyzing factors, and identifying root
causes of problems, leading to early resolution of problems and improvement of theeffectiveness of recurrence-prevention measures.

78

Inspector Training

In addition to acquiring the basic knowledge of inspection work, cultivating themindset as an inspector will lead to the prevention of outflow of quality defects byimproving the reliability of the inspection process.

29

Change Management Education

By raising the level of basic knowledge of change management, participants
understand the importance of accurate action and communication at the time ofchange, leading to the prevention of quality defects.

52

Basic Product Safety Education (Machinery Safety,
Electrical Safety, and Product Risk Assessment)

Raising the level of basic knowledge about product safety and raising safety awareness.

337

Seminar on CE (Europe) and UKCA (UK)
(Outside Lecturer)

A program to deepen participants’ basic knowledge of the European Union CE
marking and the UKCA (UK) and to deepen knowledge that can be used in their work.

30

Human Error Prevention Education

By incorporating the idea of preventing human errors, we will revitalize the creationof a mechanism that prevents mistakes from occurring.

80

ISO monitoring team

ISO Committee: division directors, business unit general managers, divisional heads
Personnel responsible for ISO management

Quality Management System (QMS) 

Verifications

Installation

Joint
inspection

Shipment• Conceptual design (design estimate)• Production technique proposal

DesignProcurement

Manufacture

Inspection•C onceptual • Design review (DR)design• Design verification• Actual design• Test-run adjustments• Prototype evaluation

Do: Sales / Design / Procurement / Manufacturing / Inspection

Quality policy (policy development = target management)
Management resource
investments (humanresources/infrastructure
work environment)

Clarification of
responsibilities
and authorities

QMS process corrections/preventions
Product realization corrections/preventions

Development of management organization

Plan

Action: Measure implementation
Continuous Improvement

56

Hirata Integrated Report 2023

Management review

Top management

Customer satisfaction (CS)/
Complaint information

Receiptof orders

Building an Improvement System That Reflects Customer Feedback 
Various performance data

Verifications

SE

Issue ofordersRequests

Sales

Proposals

Customers

Number ofparticipants

Purpose/Content

Basic Education for Quality Management(Introduction to ISO 9001, ISO Auditor)

Chair of ISO Committee

Product requirement
review(UK) given by external lecturers with the aim of acquiring
the knowledge necessary for dealing with products for
Europe. Furthermore, we are working to improve thequality of operations throughout the Company, suchas conducting human error prevention training for all
departments, including indirect administrative departments.

Educational Programs Implemented in FY2022 (Education Aimed at Improving Quality Awareness and Product Reliability)

Quality Management Promotion Framework

Secretariat: Quality Control Department

Implementation of ISO Internal Audits and Quality
Management Audits for Our Suppliers
Evaluating effectiveness and suitability through annual ISO
internal audits, the Company utilizes its QMS in its efforts
to prevent quality defects, in addition to taking reliablecorrective actions, by providing corrective guidance asappropriate. We also conduct quality management audits
geared toward those suppliers with which the Company
does business. Having built a system that can guarantee thequality of each part incorporated in our products, we areworking to provide safer and more reliable products.

ISO internal audit
Achievement status of quality targets
Process implementation status
Analyses of complaints/defects
Analysis of customer information

The Company listens to opinions and suggestions throughall departments that have opportunities to interact withcustomers. Fifty-four customers participated in our customer
satisfaction survey. Based on these valuable opinions andother factors, we are striving toward product improvements
and strengthened service support.
In fiscal 2022, scores for product evaluation and service
evaluation improved slightly compared with fiscal 2021.
However, since the scores for these two items are lower
than other evaluation items, we consider them to beissues. Many of the opinions from customers were related
to overseas services and communication issues due tolanguage barriers, so we will work to improve these issues.

Satisfaction Weighted Average Score(Five Points Max.)
Product evaluation
4.5

Corporateevaluation

3.79

4.03

Evaluation of person
in charge (sales)

4.0

4.02
3.5

3.76

4.08
Evaluation of
person in charge(design)

Serviceevaluation

3.97

Technology
evaluation

Check: Analysis/Evaluation
FY2020

FY2021

3.94

Evaluation of person
in charge (nanufacture)

FY2022

Hirata Integrated Report 2023

57