40YUASA INTEGRATED REPORT 2023

Value Creation Foundation

DX Promotion

The shift from Single Item Business to Integrated Product-Service.
We aim to realize a sales strategy with a■Overview of Our DX Promotion
market out approach utilizing data.

Digital Talent Cultivation

Defensive/Intermediate DX
Organizing,
operational
improvement

Kaoru Hirose

Senior Executive Officer, Chief Digital Officer,
ESG Promotion Officer

of DX Promotion and its Place in▎ImportanceBusiness Model Transformation

We believe DX promotion is vital for the business modeltransformation the YUASA TRADING Group is aiming to realize inthe shift from single item business to integrated product-service.
Integrated product-service business means that we aggregate
and analyze customer and market issues, needs, information, anddata to provide TSUNAGU solutions, which combine products,
services, and technology, and solve social issues.
In addition, there is an urgent need to reduce operating costs
using IT technologies in the core businesses. We would also liketo implement measures that can provide useful information
using data analysis to YUASA Yamazumi Shareholding Association
and YUASA TANKYOKAI.
Due to the nature of its business as a trading company,
YUASA TRADING already has in place mechanisms for collecting
information from manufacturers and markets. Utilizing DX, wehope to convert this information and YUASA TRADING’s uniqueinformation into data and anticipate rapidly-changing market
needs to realize a sales strategy with a market out approach thatsolves social issues through new mechanisms and solutions.

Processtransformation

Business modeltransformation

Offensive DX

Operational
streamlining

Promote data
accumulation andutilization

Core businesses
expansion

The Future After Digital Talent Cultivation■︎Analyst talentService expansion

New business creation
The shift from Single
Item Business to
Integrated
Product-Service

To promote DX, we provide grade-specific training for
all employees to develop digital talent in addition to
support for Growing Together 2026 (the Medium-termManagement Plan), we are enhancing corporate value
through the creation of a new business model.

Utilize data

・Talent that analyzes
data combining internaland external data,and proposes analysis
results and hypotheses
to management, eachbusiness domain, andDX talentManagement

￥

Data

▎Current Issues and Development

The current issue within the Group is that information is dispersed
and master data management is not in place. This decentralizationof information is because there are too many different,
independent systems.
With the renewal of the core system scheduled for May
2025, we will aim to centralize management of information andstrengthen the Group’s management foundations.
With regards to master data management, which will become
more important with the renewal of the core system, we will assign
specialist personnel as well as addressing operational aspects.
In addition, we launched training for all employees in FY2023
to develop digital talent in parallel with strengthening digital
governance.

Analysis departments

Staff■ ︎IT talent・Talent that utilizes IT tools
and digital technologies toimplement streamlining
and digital measures

Divisions■ ︎DX talent・Talent that utilizes data
analysis results to promoteplanning and proposal
activities

We have positioned FY2023 as our digital “dawn” in orderto realize a digital “age of stability” from FY2026 onward.
We are aiming to produce 100 talented IT personnel, in
addition to providing IT basic training for the acquisition ofbasic IT knowledge, and training for DX and analyst talent.

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YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Environment

We will contribute to realizing a sustainable society both in our Group and in our business based on harmony with the global environment.

▎Approach to the Environment

Code of Conduct (excerpt)
The YUASA TRADING Group strives to meet the social needs ofdiverse consumers while providing safe and useful products
and services, giving adequate consideration to product liability,
resource and energy saving, and environmental problems
and conservation. We also give due consideration to social
responsibility in our handling of products and services.

Environmental Policy
All people who work at the YUASA TRADING Group take positiveand independent action and contribute widely to society
based on the Environmental Policy to realize sustainable
development which aims for harmony between the soundmaintenance of the environment and economic growth.

which consist of managing environmental hazards such as
reducing power consumption, waste emissions, and vehicle
fuel consumption, as well as managing environmental
benefits, such as selling environmentally-friendly, energysaving products. Led by the President, the Group makes
concerted efforts to promote its business activities as“environmentally-friendly YUASA.”
Environmental Management
https://www.yuasa.co.jp/csr/environment/activity1.html■Environmental Management Promotion System
Top management

Environmental Policy
https://www.yuasa.co.jp/en/sustainability/environment/
management/

Person responsible
for environmental
management
Internal auditing
team

Environmental
Management
Executive Office▎Environmental Management Promotion System
Environmental Management
Based on the YUASA TRADING Group Environmental Policy,
we are working to reduce the environmental burden of ourorganizational activities, products, and services to improveGroup-wide environmental performance using ISO 14001 to
implement continuous improvement activities based on thePlan-Do-Check-Act (PDCA) cycle.
The Group’s environmental activities focus on two areas,

Environmental
Management
Committee

Waste and Energy
Saving Committee

Environmental Conservation Activities
in Malaysia

In Malaysia, where our trading relationships in machine
tools and timber span over 50 years, we are implementing
environmental conservation activities in partnership with
the Japan Malaysia Association with the aim of regenerating
and protecting the country’s tropical rainforests. In FY2022,
we planted about 1,000
mangrove trees grown fromseedlings and maintained
the planted trees.
Students from Universiti Sains Malaysia
and local people planting trees

We also implemented an environmental education
program for students in the surrounding area to learn
about the need for conservation of mangrove forests. In
FY2022, we held a painting competition for elementary
school students of all grades at the activity site to draw the
mangrove forest ecosystem making use of TSUNAGU, theslogan of the YUASA TRADING Group.

EnvironmentallyFriendly Products
Committee

YUASA TRADINGGroup companies

Divisions and sites

Environmental
Management
Committee members

Environmental
Management
Committee members

TopicsSome of the paintings and outstanding students from each grade

42

YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Environment▎Disclosure Based on TCFD Recommendations

The YUASA TRADING Group declared support for therecommendations of the Task Force on Climate-Related
Financial Disclosures (TCFD) in March 2022, and we havecalculated CO2 emissions and identified risks and opportunities.
In June 2023, we decided to disclose information based on
TCFD following approval by the Board of Directors.

Governance and Risk Management
Viewing risks, opportunities, and impacts relating to climatechange as important issues to do with business strategy andsustainability, the Board of Directors deliberates on these issues
and decides on related strategies, etc. In October 2021, weestablished the Sustainability Promotion Committee chaired by
the Representative Director in order to discuss about importantsustainability issues, including climate change, and inquire andprovide advice to the Board of Directors.
The Sustainability Promotion Committee evaluates risk
management for sustainability overall, including climate change,
and reports on the status of risk management to the Board of
Directors as necessary in cooperation with the person who has
overall responsibility for risk management. P.23

Strategy
As a Service Integrated Shosha Group focused on the four key
areas of manufacturing, home building, environment building,and town building, we handle a diverse range of products andservices, and as a result the impacts of climate change and therelated changes in the business environment present us withboth risks and opportunities.
< Risks and Opportunities of Climate Change >In FY2022, we identified the risks and opportunities of climatechange considered to be important. We are conducting
discussions with representatives from business divisions andstaff in charge of promoting sustainability in administrative
departments. With regard to those businesses and fields thatwill be affected, besides making appropriate changes and■Risks and Opportunities of Climate Change
Categories

Policy andlegal
Transition
risks

Technology
Market andreputation

Physical risks

●
●
●

Acute

●

Chronic●

Products
and services
MarketCost increases due to strengthening of environmental
regulations for products●●

Opportunities

Main content

Cost increases caused by government regulations,such as introduction of carbon tax

●

●
●

●

Decrease in demand for existing products due to low
carbon technology

Cost increases due to soaring prices of raw materials,
etc. and rising energy prices due to decarbonization

Decline in external reputation and lower supply chain
competitiveness due to delays in taking action andinadequate information disclosure
Disruption of Group sites and the supply chain due tolarge-scale natural disasters
Stagnation of production activities due to water andpower shortages
Expansion in demand for products with high energy
efficiency
Expansion in demand for products related toresilience

Expansion in demand for products related to resource
recycling
Expansion in demand for renewable energy

implementing risk management, we are also working proactively
to exploit business opportunities during the transition period thatarise from changes in government policies, regulations and themarket environment, with the aim of realizing sustainable growth.
< Strengthening Initiatives to Seize Opportunities >In 2009, the Group established a dedicated energy saving
consulting team. In addition to providing support for the
introduction of energy-saving equipment and renewable energy
at suppliers’ manufacturing plants, the team promoted proposal
and sale of energy-saving and decarbonization-related products
to reduce CO2 emissions during product use by buyers and theircustomers. At present, we are strengthening initiatives related
to energy saving and decarbonization for overseas markets.
To contribute to reducing environmental impact right aroundthe world, we are holding seminars on carbon neutrality andpromoting energy-saving proposals utilizing the Joint Crediting
Mechanism (JCM).
We are also developing the Resilience & Security Businessto address the physical risks of climate change, which include

intensifying natural disasters. Besides working to promote
products and services that lead to the resilience of social
infrastructure based on the keywords of disaster prevention andmitigation and BCP, we are developing new solutions to tackle
social issues, such as increasingly severe natural disasters andinfectious diseases.

Indicators and Targets
Besides aiming to make the YUASA TRADING Group as a wholecarbon neutral by FY2030, we will also be striving to reduce theenvironmental burden throughout the supply chain. As the firststep toward making the Group carbon neutral, we are aiming
for a 30% reduction in CO2 emissions compared with the fiscal
year ended March 31, 2023, by the fiscal year ending March 31,
2026, the final year of the Medium-term Management Plan.
Starting from FY2022, we have been calculating CO2
emissions for each Group company, both domestic andoverseas, and we have begun implementing various measures
aimed at reducing emissions. Furthermore, in order to drive a
reduction in overall emissions in the entire supply chain throughour business, we have also been calculating Scope 3 emissions.
■︎YUASA TRADING Group’s CO2 emissions (FY2022)

Unit: t-CO2

Scope 1&2

Non-consolidated*1

Group companies*1
3,020

4,045

Scope 2

1,232

1,405

2,637

Scope 1&2

2,257

4,425

6,682

Scope 1

1,025

Total

*1 Non-consolidated includes YUASA TRADING CO., LTD. only. The Group companies include subsidiaries
and associates (except for those companies not accounted for using the equity method).

Unit: t-CO2

Scope 3Distribution-related emissions*2
Data center-related emissions*3

YUASA TRADING CO., LTD.
(non-consolidated)
500

139

*2 Calculated based on the power and fuel consumption of the main warehouses to which the company
outsources distribution operations.
*3 Calculated based on the power consumption at data centers to which the company outsources
operations.

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YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Environment▎Initiatives to Achieve Carbon Neutrality

Holding Overseas Seminars on Carbon Neutrality
As a global trend toward achieving carbon neutrality, reductions
in CO2 emissions are required throughout the supply chain,including outside Japan. Besides Thailand and Vietnam,
where we have been promoting energy-saving projects forsome time, we also held seminars in Indonesia, Mexico, thePhilippines, and Malaysia, where we conduct business, to gain
the understanding of methods for reducing CO2 emissions,
including utilization of the Joint Crediting Mechanism (JCM), aninternational framework for achieving reductions.
The YUASA TRADING Group has been striving to improve
the global environment by conducting initiatives that utilize theJCM system, which contributes to the reduction of greenhousegases in developing countries. In addition to using the seminars
as an opportunity for promoting the overseas expansion of
our environmentally-friendly businesses more strongly, we willcontribute to both economic development and environmental
conservation in the partner developing countries through ourJCM project structuring services.

Obtaining Certification under the J-Credit System(YUASA LUMBER CO., LTD.)
Our Group company, YUASA LUMBER CO., LTD., owns
approximately 100 hectares of forests in Hokkaido and has
managed renewable forest resources in cooperation with local
people. Appropriate maintenance (tree thinning and planting)encourages the growth of forests and increases absorption of
the CO2 in the atmosphere. YUASA LUMBER has developed a“forest management activity project” to quantitatively evaluate
CO2 absorption in its past and future maintenance, and it
has received certification under the Japanese government’s
J-Credit System* for the tree thinning and planting practiced insome of the forests it owns. In FY2022, emission reductions are
expected to be approximately 100 tons, and total absorption is
expected to be approximately 2,800 tons by FY2037.
Going forward, YUASA LUMBER will collaborate with local
government, universities, research organizations, and othergroups in efforts to utilize the unused timber created by tree
thinning, including the thin timber from tree thinning thatcannot be used for lumber manufacturing and branches.

* Reductions of CO2 and other emissions through the introduction of energy-saving equipment and useof renewable energy or absorption of CO2, etc. through appropriate forest management

Seminars already held in six countries(Thailand, Indonesia, the Philippines,
Vietnam, Malaysia, and Mexico)

A seminar on carbon neutrality in Thailand■Diagram Outlining the JCM System (Joint Crediting Mechanism)Japan

Diﬀusion of advanced decarbonizing
technologies, etc., and implementationof mitigation actions

Operation and managementby the Joint Credit Committee
which consists of representatives
from both sides
Credits are used toachieve Japan's emission
reductions target

CreditJCM

JCM

Partner countries
JCM projectMeasurement/
Reporting/Veriﬁcation

GHG emission
reductions/Removals▎Initiatives to Increase Resilience

Developing “RISK SAVER” Supply Chain Risk
Visualization System
Over the past few years, supply chain risks have occurred inquick succession, including unforeseen natural disasters, thespread of infectious disease, shortages of semiconductors,
and human rights problems. In order to identify these risks
and achieve a rapid response when they occur, our Group
company YUASA SYSTEM SOLUTIONS Co., Ltd. and JX PRESSCORPORATION jointly developed “RISK SAVER,” a supply chain
risk visualization system.
RISK SAVER is Japan’s first system with the ability to identify
supply chain risks in real time. The system automatically
picks up on supply chain risks by using AI to monitor online
risk information, such as information on natural disasters
disseminated through social media and news reports, and links it
to a company’s own supply chain information. It instantly displays
information that includes the kind of work assigned to a supplieraffected by a disaster and specific alternative production sites.
This enables preparation for calmly continuing production
even in a highly-charged disaster situation, providing support
for promotion of sustainable procurement.
Online risk information

Natural disasters
and accidents
Terrorism, etc.

The company-owned forest in Hokkaido that tree thinning was conducted for forest
restoration

Access andidentify
information
using AI

Risk assessment
function

Risk information
database

Customer supply chain information
Which components
to order fromwhich suppliers

Supply chain information
database

Alert
notiﬁcation function

Alternative
proposal function

RISK SAVER introductory video
https://www.youtube.com/watch?v=nRaWpkaKS2c

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YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Society

In order to contribute to a sustainable society, we will promote reform of corporate culture centered on management that regard for the individual and build a culture that
normalizes innovation.

eforming Corporate Culture to Strengthen▎RHumanResource Capabilities

Code of Conduct (excerpt)
The YUASA TRADING Group will create prosperity andcomfort for the people working at the Group and ensure asafe environment with ease of employee work in addition
to realizing a corporate culture that gives maximum respect
to personality and individuality and enables employees toexercise free and open-minded creativity.

Overview of the Corporate Culture Reform
Regarding its employees as human resources (human talent),
the equivalent of capital, The YUASA TRADING Group pursues
entrepreneurial spirit and revolutionary ideas and focuses on
shaping the workplace environment based on the organization
and rules founded on concepts of mutual trust and a mindsetof collaboration.
In order to promote the “Total Coordination Skills,”“Challenging Spirit,” and “Communication,” which are the
keywords, there are now various systems already in place outof which new solutions for social issues are created.
We have launched the YUASA PRIDE Project, an allemployee participation-based personnel reform project withthe commitment of top management and led by the Human
Resources Department to attain further evolution over the three
years to FY2025, which is the harvest stage for the achievementof YUASA VISION 360.
We will increase
employee work
satisfaction and ease of
employee work throughthis project.
YUASA PRIDE Project workshop

Objective of Corporate Culture Reform
We will foster a culture which normalizes TSUNAGU innovation through personnel reforms, developing the working environment,
and strengthening governance.
Connection to the Medium-term Management Plan
By normalizing TSUNAGU innovation, we will accelerate business transformation with the aim of solving social issues.
■Overall Picture of Corporate Culture Reform

Accelerate business transformation
Create a culture that normalizes
TSUNAGU innovation
Increase employee
engagement
Increase employee
work satisfaction
・Talent cultivation
・Reform of various
personnel systems

Increase employee
ease of work
・Diversity
・Workstyle reform

Develop an environment that can maximize
TSUNAGU innovation

Governance, compliance, and risk management(the base of corporate culture)

Personnel reforms
YUASA PRIDE ProjectP.��

Develop the working
environmentP.��

Strengthen
governance
P.��

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YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Society▎Personnel Reforms “YUASA PRIDE Project”

Objective of Personnel Reforms
In order to accelerate business transformation, we will increase employee engagement and strive to develop human talent with theability to solve social issues through TSUNAGU innovation. As one of the initiatives for achieving this, we have launched the “YUASAPRIDE Project,” an all-employee participation-based personnel reform project to improve employee work satisfaction and ease ofwork. Under the project, we will consider new personnel systems and promote talent cultivation.
■︎Overall Picture of Personnel Reform
Corporate Philosophy
Becoming a TSUNAGU Service
Integrated Shosha Group● Achievement of YUASA VISION ���●

Proﬁle of the people we are seeking●

Accelerate business
transformation

Project to regard
for the individual

Promotion of diversity● Workstyle reform●

Solve social issues through
TSUNAGU innovation
Increase employee engagement

YUASA PRIDE Project

Generalmanagers
and above

Strategic thinking/business creation

Managers

Leadership

Assistantmanagers

Marketing

Supervisors

Accounting

Staﬀ

Logical thinking (business school)

Prospective
employees

Bookkeeping distance learning/
TOEIC examinations/Excel

Training to develop Business school Headquarters
global humanplacement
andresources
training
division training

Product knowledge/
manufacturer placement training/industry knowledge

Talent cultivation
Reform of various personnel
systems

YUASA BUSINESS SCHOOLBusiness school placement training

Project to increase
work satisfaction■Training System Diagram

Language training in Japan●

Human resources with the ability to solve
management issues of our business
partners

Basic Philosophy
The Group considers the training of management human resources
to be an important part of talent cultivation. Based on this, we willrevise our training system with management beings defined as“organizational management,” “business creation,” and “solving themanagement issues of business partners.”
More specifically, we will offer management skills training,
including business school and support for obtaining qualifications,professional skills training, including headquarters training andsupport for obtaining industry qualifications, digital skills training,
including digital transformation (DX) training, and global skills training,
including an overseas training system and language training.

Overseas training system●

With a challenging spirit, we strive foropen communication between members
inside and outside the division to exercise
the total coordination skills of the YUASATRADING Group that transcend the area of
our own organization.
● With gratitude for our predecessors
based on our understanding of morethan ��� years of tradition, we create newvalue to pass on to the next generation
through constant innovation.
●

YUASA VISIONYUASA Values▎Talent Cultivation<Cultivation of Human Talent to Be Strengthened from April
2023 Onward >・Enhancement of management skills
First, we will provide management skills training usingbusiness schools for all managers, which will be extended to
mid-level and general employees.
・Cultivation of global human talent・Cultivation of digital transformation (DX) human talent P.40

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YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Society▎Personnel System

Basic Philosophy
The Group aims to develop a personnel system that candemonstrate the “Total Coordination Skills,” “Challenging
Spirit,” and “Communication,” which are the keywords.
Moreover, we consider the training of management humanresources to be an important part of human talent cultivation.
To this end, we have launched the all-employee
participation-based YUASA PRIDE Project, and we will establish
a variety of personnel systems through the project.
Through the project, we will also consider “revision of
the seniority system,” “performance-based systems that areappropriate for YUASA TRADING,” and “realizing diversity” andmake necessary reforms to our various personnel systems.
Challenge Evaluation System< Points for Contributions from Other Departments >This is a system which adds points in HR evaluations basedon the results of contributions from other departments forthe purpose of fostering a corporate culture with active crossdepartmental and Group-wide contributions.
Incentive points called “Thanks Point” are added not
only for employees who have made contributions to otherdepartments but also to employees who have requested
incentive points for their cooperation.
■Points for Contributions from Other Departments
Mastery points
Success points
Incentive points

Points are added for internally announcing (registering)areas of expertise

Points are added for success based on cross-departmental
cooperation
Points are added for cross-departmental contributions< Challenge Career Points >This is a system that adds points in HR evaluations for
employees who have selected their own career in order tofoster a culture of taking on challenges in new areas.
■Challenge Career System
Internal FA system

System for employees to submit requests for voluntarytransfers across headquarters

Career pass system

A system in which the company transfers high achievers
across headquarters

Internal recruiting
systemOverseas assignment
system

A system in which the company publishes open positions,and employees who want to be assigned apply for them

A system for employees to request an overseas transfer< New Business Proposal Points >Employees who have made a new business proposal receive
points on their HR evaluations to provide motivation for new
business proposals from employees.
Applications are open to all Group employees in the
categories of “new business,” “new function,” and “new product”
and “new market.” Employees whose proposals advance tothe final selection are given the opportunity to present their
proposals to the company’s board members.

TopicsHolding round table meetings with the
President

Since 2017, we have been holding round table meetings
with the President for face-to-face, direct communicationby the President with the employees at each site, including
the Group companies, with the aim of deepening mutual
understanding and fostering an open corporate culture
through direct dialogue with representatives. In FY2023,
round table meetings are planned for all sites and all Group
companies in Japan.
The round table meetings with the President, whichenable the President and employees to act toward thesame purpose through direct dialogue, are positioned as animportant initiative for stimulating communication, which
is one of the Group’s keywords, and we will continue to holdthem in the future.

■Number of Proposals in the New Business Proposal System
FY201960

FY202151

FY2020
FY2022

70
57

Approximately half of the 57 proposals in FY2022 were in the“new business” category. Some of these proposals are being
considered for concrete commercialization.

Presentations for the new business proposal system

A round table meeting with the President with the employees at the Group
company, NAKAGAWA KINZOKU CO., LTD.

< YUASA Labor Union >YUASA TRADING and the YUASA Labor Union stand on an
equal footing with each other and have entered into a labor
agreement based on impartial understanding and trust.
The aim is to promote sound corporate development andimprovement of the working conditions and environment of
employees.

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YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Society▎Diversity

Basic Philosophy
Based on a spirit of “Regard for the Individual” the YUASATRADING Group has respect for the individuality and rightsof employees, and we have continued to engage in businessactivities while putting value on entrepreneurship andinnovative ideas.
Henceforth, employees with more diverse backgrounds
than ever before in terms of gender, age, nationality, disability,and various lifestyles and values will foster an environment ofrespect for each other’s values and cooperation.
We will also seek to enhance corporate value by
encouraging a transformation in the mindset and behaviorof each and every employee, creating an employee-friendly
environment, and implementing diversity management
throughout the Group.
YUASA TRADING Group Diversity Policy
https://www.yuasa.co.jp/en/sustainability/society/diversity/

Indicators and Targets< Diversity >■KPI for Medium-term Management Plan
“Growing Together 2026”*
��%��%Percentage offemale employees incomprehensive work position

��.�%

��.�%

�%
�%
�%
�%

Percentage of
employed females incomprehensive work position

Percentage offemale managers

Percentage of employed females
in comprehensive work position
Target 12.0%

��.�%

�.�%

�.�%

�.�%

�.�%

�.�%

FY����
Results

FY����
Results

FY����
Results

Percentage of male employee
taking childcare leave and leave
for the purpose of childcare

FY2021 Results

FY2022 Results

FY2025 Plan

56.2％

62.8％

70％

1,977 hours

1,955 hours

1,920 hours

Percentage of taking paid
leave
Average hours of labor

34.3％

Percentage offemale managers
Target 3.0%

FY����
Plan

78.1％

90％

■Initiatives to Support Raising the Next Generation*
Employees working
shortened hours

FY2021

FY202281

90

35

Female employees balancing work andraising of children (female employees withpre-elementary school aged children)

46

Specific Initiatives< Career Track Transfer System >In order to promote women’s empowerment, we have
implemented a system for employees to transfer their career trackfrom general office work positions to comprehensive work positions.

■Trend*Percentage of female employees
in comprehensive work position
Target 6.0%

�.�%

< Workstyle Reform >■KPI for Medium-term Management Plan “Growing Together 2026”*

Special service positions(in transfer trial period*1)

Comprehensive work positiontransfers

FY2021Results

3
1

FY2022
Results

7

FY2023
Plan

2

8
0*2

*1 There is a two-year trial period for a career track transfer from general office work positions tocomprehensive work positions (position = special service position).
*2 Five employees are scheduled to transfer to comprehensive work positions in April 2024.

We held training for employees
who are transferring fromgeneral office work positions
to comprehensive work
positions.

Held in January 2023
Training for employees transferring tocomprehensive work positions▎Health and Productivity Management

Basic Philosophy
In health and productivity management, maintaining andpromoting the safety and mental and physical health of employees
is very important for each and every employee to maximize hisor her individual skills. We have made a commitment to healthand productivity management in order to realize the sustainableenhancement of corporate value.
Health Management Declaration
https://www.yuasa.co.jp/corporate/health_management.html

Promotion System
The Supervisory Manager of Management Administration(Senior Managing Director) is the chief executive for employee
health management, and reports on the status of measures andinitiatives promoted jointly by the Personnel Department and thehealth insurance association at important management meetings.
< Recognized as the “2023 Certified Health & Productivity
Management Outstanding Organization” >Continuing from last year, YUASA TRADING was recognized forthe fifth time as a “Certified Health & Productivity Management
Outstanding Organization” in a system that awards major
companies who execute excellent
health and productivity management.
This is awarded by the Ministry of
Economy, Trade and Industry ofJapan to promote the spread ofhealth and productivity management.
●Major Initiative: Expansion of the Wellness Promotion

Center (WPC)The number of interview rooms have been increased, and afull-time public health nurse was employed in November 2022.

■︎Health and Productivity Initiatives (FY2022)*
Regular health checkup rate
Stress check rate

*Indicators for YUASA TRADING (non-consolidated)

100%
100%

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YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Society▎Development of the Working Environment

Objective of Working Environment Development
We aim for a Group-wide office environment with the ability topromote “Total Coordination Skills,” “Challenging Spirit,” and“Communication.”
We believe the “workplace environment” is as importantas system reform in order to increase employee “worksatisfaction” and “ease of work.”
We will accelerate business transformation by developing anenvironment with open communication regardless of division,
Group, job title, age, and other factors to create innovation.
We will also maximize individual performance to realize
workstyle reform.

■︎Development of the Working Environment We Are Aiming For
Developing an environment with the ability tomaximize TSUNAGU innovation
Total Coordination
SkillsAn environment that candemonstrate division andGroup total coordination
skillsChallenging Spirit
An environmentthat can meet thechallenge of new
business creation andoperational reform

TopicsCommunication
An environmentthat can facilitatecommunication
with diverse
employees

TopicsOccupational safety - disastercountermeasures to keep employees safe

The YUASA TRADING Group puts employee safety firstand has introduced systems for storing stockpiles andconfirming safety at each site and the Group company as
countermeasures in the event of an emergency.
At the head office and Kanto branch of YUASA TRADING,
we store a stockpile equivalent to three days' worth of
supplies for all employees working at the offices in linewith ordinance of the Tokyo Metropolitan Government as ameasure to deal with stranded commuters in the event of adisaster. As storage space is limited inside the offices, besides
the stockpile store room, we also utilize dead space effectively
to secure and disperse storage areas, such as above andbelow wardrobes, in business meeting spaces, and under theseating in break rooms.
A safety confirmation system that can confirm the safetyof employees as quickly as possible has been introduced at
all Group companies in Japan, and we run regular drills.
Moreover, from the perspective of managing various
risks in a disaster, we have distributed the Group's original“Disaster Prevention Handbook” to all employees, inaddition to commencing development of the “Disaster Initial
Response Manual” in FY2022. The manual compiling thesafety countermeasures to be prepared in advanced andwhat to do in terms of initial actions in the event of a disasterwill be distributed to all employees during FY2023.

Basic Philosophy
Based on the mindset of “service with good products” thathas been passed down from the founding of the Group, we
conduct fair, honest, and reliable commercial transactions.
In order to promote management that values sustainability,
including harmony with the global environment, inpartnership with diverse stakeholders, we have establishedthe YUASA TRADING Group Transaction Policy. Under thepolicy, we pay due attention to human rights, labor practices,
environmental conservation, quality, safety, and security in the
supply chain, and carry out regular checks.
YUASA TRADING Group Transaction Policy
https://www.yuasa.co.jp/en/sustainability/society/supply-chain/▎Respect for Human Rights

Compliance with Human Rights Policy
Respect for human rights is one of the important elementsof the YUASA TRADING Group's business activities. Based on
the YUASA TRADING Group Human Rights Policy, all officers
and employees of the Group companies practice the policy
throughout our business activities. In terms of specificinitiatives, besides the implementation of human rights due
diligence, we also engage in dialogue with stakeholders andwill continue to strengthen our measures aimed at respect forhuman rights.
YUASA TRADING Group Human Rights Policy
https://www.yuasa.co.jp/en/sustainability/society/human-rights/

New head office building

We will build a new head office building as a base that willconsolidate the YUASA TRADING Group sites in the Tokyo
metropolitan area, which are currently dispersed across several
locations, to be able to create vigorous communication andchallenging spirit and demonstrate total coordination skills.

▎Sustainable Procurement

Stockpile storage (Left: Under seating in a break room; Right: In empty spacein wardrobes)