Fine Materials for the Future

CSR Report 2021

CSR Policy
TODA KOGYO Group is committed to carry out management on an ongoing basis which is based on management principle and management policy, for the purpose of continued sound development into the future.
Recognizing that the fulﬁllment of our social responsibility is an important role as better citizens and corporate citizens, we will adhere to the laws, regulations and company rules, on the base of the spirit of compliance. Top managers of our Group themselves will lead by examples of these philosophy and policy, thenwill enforce within the company, disseminating to Group corporations and business partners. Furthermore,
we will seek sound and normal relations with politics and government, while refusing to have relations with
antisocial forces and groups that may threaten the order and safety of civil society.

Four guidelines for CSR
For our Investors

Not only by means of accumulation and supplyof results brought by high quality growthwhich is underpinned by creative technologies,
but also by means of establishment and administration of a transparent and sound corporate
governance setup and eﬀective internal controls, we will endeavor to earn understandings
and empathies of all our investors.

For Society

In accordance with the spirit of compliance,
we will break oﬀ relations with antisocial
forces, give the highest priority to considerations for safety and the global environment,
and aim to build a wonderful living culture on
the global level based on our cultural capital,
while seeking cooperation with local communities and harmony with international societies.

We will share values from customers' viewpoints and, using our original technologies asadvantages, we will also build good partnerships with our business partners who sharesame ambitions. And then, we will continue tomake mutually beneﬁcial eﬀorts for achieving
our common goals.

For our Employees
The creativity and diversity of each and every
employee are our wealth. We will support andfairly assess the limitless advancement andexpression of these abilities. We will also
strive to live together while enhancing the
comfort and aﬄuence of employees.

Editorial Policy

About the CoverWith the aim of promoting the sustainable development of the company and society, the Group has beenworking on CSR activities (environment, health andsafety, health, labor and human rights, quality assurance, ethics, social contribution, and community dialogue) and striving for sound business management.
We began publishing our CSR Report in 2015 in order
to disclose the details of these activities to our stakeholders and society in general.
We hope that this report will help our stakeholders
understand the Group s CSR activities and build abetter relationship of trust through dialogue.

The Group supports Paralympic Art, an initiative that encourages the social participation andeconomic independence of artists with disabilities, and supports the artists as an oﬃcial partner.

Scope covered: TODA KOGYO CORP. and some Group companies
Period covered: April 1, 2020 to March 31, 2021

(Some of the reports include activities prior to ﬁscal 2019 and activities after April 2021.)

Reference guidelines: GRI: Global Reporting Initiative
Ministry of the Environment, Environmental Reporting Guidelines 2018
Publication date: (English version) December 2021

2

For our Customers and Business Partners

TODA KOGYO CSR Report 2021

Title: The Edge of the Wave

Name of artist: AngelRabbits(father and son collaboration)

As I stared with the lines my son drew, an imageof the ocean, which he loves, came to mind, and I
painted the lines with color, thinking of the joy
my son would feel.

Management Principle,
Management Policy andGuidelines for Action

Contents

TODA KOGYO Group renewed its Management Principle, Management Policy andGuidelines for Action in ﬁscal 2014. Each andevery executive and employee fulﬁlls his or
her respective role and works in accordancewith these principles.

2

CSR Policy

3Management Principle, Management

Management Principle

4

Business Contents and History

6

TODA KOGYO Group s Product8

Top Message

10

Business Overview and Medium-Term

14

Feature I

The Group will further improve the ﬁne particle synthesis technology we have developedwith iron oxides and will always continue
lively growth and development.
We will work on a foundation built on sincerity and trust and we will bring together
our creativity and manufacturing strength to
make a contribution to society in general withattractive new materials and solutions thatare full of originality.

Management Policy
1. We will establish a management foundation as a Manufacturing Company that cancontribute to society and will continue togrow and develop even 100 years after our
foundation.
2. We will reﬁne our only-one technologies
and continue to oﬀer products and solutions
that have high added value.
3. We will become a company that is essential on a global level and increase the corporate value of the Group.
4. We will seek the happiness of our employees and their families and will be a company
that is constantly trusted by our stakeholders.

Guidelines for Action
1. We will act quickly to oﬀer products andsolutions that respond to the requirements ofthe customers.
2. The whole company will come together as
one, with manufacturing, engineering, sales
and management working enthusiastically
together.
3. We will be corporate citizens who arefaithful and fair and will act with a strong
sense of ethics.
4. We will improve our dignity as individuals
and will continue to have pride, hope anddreams for the future.
・We will work for harmony and symbiosis
with the local community and with the global
environment.

Policy and Guidelines for Action

Group familiar to Consumers

Business Plan

Eﬀorts to Realize a DecarbonizedSociety

16

Feature II

Exhibiting at an Automobile Industry
Exhibition

18

Management

20

Product Quality

22

Environment and Safety

30

Society38

Company Data

39

Oﬃces and Aﬃliate Companies

TODA KOGYO CSR Report 2021

3

Business Contents of TODA KOGYO GroupTODA KOGYO Group expands business based on nanotechnologies beginning with the wet synthesis ofiron oxides. Iron oxides are inorganic compounds composed primarily of iron and oxygen. Depending ontypes of bonding of elements, iron oxides show diﬀerences in color, hardness, strength, magnetism andother physical or chemical properties.
The Group s wet synthetic technology is unique in that we can freely produce various kinds of materials
with the functions and properties required by the application, by means of controlling properties of particles. Our accumulation of nanotechnology based on wet synthetic technology represents the core competence of TODA KOGYO.
Our accumulation of specialized knowledge, technologies and know-how based on iron oxides enables us
to approach customers' issues from a new viewpoint and to ﬁnd solutions from the perspective of materials.
In recent years, we have developed and manufactured materials for electronic parts unique to TODA
KOGYO with superior knowledge of materials, such as Barium titanium trioxide. Therefore, we can meet
the advanced demands of customers in the electronic parts market. Moreover, returning to the origin of ironoxides, we will continue to focus on the development and manufacture of various kinds of catalysts,
magnet materials and functional pigments.
With the entire Group working together, we will continue to provide solutions which support information,
environment and energy via materials.

Home appliances and・Magnet materials (household appliance motors)
telecommunications
・Parts for cell phones and smartphone products
equipment・ Parts for wearable products

・Pigments for automobiles and oﬃce equipment
・Pigments for building and building materials
・ Pigments for antirust paints for ship bottom

Paints・Battery materials (for electric vehicles)
・Magnet materials (motors and sensors)
・Transparent iron oxide (coating)・Functional materials for electronic components

Automobiles(inductors, capacitors)

・Functional iron oxide(brake pads, anti-vibration, vibration control)

Please do have a look at

Copiers and printers

・Toner materials, carriers
・Magnet materials (magnet roll)

Environment andhousing・Lead free materials (PVC, roads)
・Combustion catalysts
・ Contaminated soil improver

TODA KOGYO CORP.

introduction video of

4 minutes and 30 seconds.

History of TODA KOGYO Group
1907
Plant relocated to
Asakita-ku,
Hiroshima City
(Hiroshima Plant)

1933
TODA KOGYO CORP.
established in
Yokogawa-Shinmachi in
Nishi-ku, Hiroshima City
1936
Head Oﬃce andplant relocated to
Funairi-Minami in
Naka-ku,
Hiroshima City

Foundedin 1823

1910

1823
Bengala manufacturing
started in Ibara City,
Okayama Prefecture

1920

1930

1940

Beginning from theindustrial manufactureof Bengala, the oldest
pigment known to mankind

Coating material for building timber
Primer for dark blue dyeing
Coloring for lacquerwareand bangasa (coarse oilpaper umbrellas)
Ceramics (akae glaze), etc.

1953
Tokyo Sales Oﬃce andOsaka Sales Oﬃce
established1953
In the process ofmanufacturing ironoxides by calcination ofiron sulfate, sulfurous acidgas was generated andbecame a serious problem

1950

TODA KOGYO CSR Report 2021

1975
Funairi Plant transformed
into a dedicated researchand development facility

1960

1970
1969
Manufacturing equipmentof magnetic powdermaterials for audiotapes
and videotapes added to
Onoda Plant

Production plant of ferrite
materials newly added to Hiroshima Plant

World s Number 1 share formagnetic powder used inaudiotapes and videotapes!

1991
Otake Creative R&D Centerestablished in Otake Plant

1994
Toda Kogyo Europe GmbH1984
established in Germany
Otake Plant newly establishedin Otake City, Hiroshima Prefecture

1980
1973
Equipment for productionof coloring pigment using
wet synthetic method
added to Onoda Plant

Use of iron sulfate and iron chloride, which arederived as byproducts from iron and steel productmanufacturing processes, as raw materials
Ferrite powder

1983
Shares listed on the ﬁrst
section of Tokyo Stock
Exchange

1965
Overcoming the pollution problems using
the development of the wet synthetic
method in which iron oxides are synthesizedfrom aqueous solution by a chemical reaction

1953
Joint research started with
Kyoto University
Bengala manufacturing istransformed from a traditional
skill to a technology

Pellets

4

1959
Onoda Plant built in Sanyo-Onoda City, Yamaguchi Prefecture

Contributing to reduction ofindustrial wastes and eﬀective
utilization of resources
The industry s ﬁrst!
Development of the wet
synthetic method for iron oxides

Toner materials

2003
Wholly owned subsidiary Toda Plastic Magnet Material(Zhejiang) Corp. established in Zhejiang Province, China
2004
Zhejiang Toda DMEGC Magnetic Co., Ltd. establishedin Zhejiang Province, China
2006
TODA Ferrite KOREA Co., LTD. established in South
Korea
2007
Toda Magnequench Magnetic Material (Tianjin) Co.,
Ltd. established in Tianjin, China
Toda Advanced Materials Inc. established in Canada
2008
All shares of Tokyo Shikizai Industry Co., Ltd. acquired
TODA ISU CORPORATION established in South Korea

1990
1988
Dedicated facility to
produce coloringmaterials for electronic
printing added to
Onoda Plant

2000

1989
Manufacturing facility of magnetic powders
for metal tape added to Onoda Plant
Computerdigital recording tapes

1984
Production of ferrite materials started
at Otake Plant

Magnets Magnetic tickets and magnetic cards

2011
Toda United Industrial (Zhejiang) Co., Ltd. in Zhejiang Province, China became a consolidated subsidiary of TODA KOGYO
2012
TODA MAGNET (SHENZHEN) Co., Ltd. establishedin Guangdong Province, China
2015
BASF TODA Battery Materials LLC established2016
Toda Kogyo Asia (Thailand) Co., Ltd. established in
ThailandAll shares of Toda Fine Tech Inc. acquired
2021
Jiangmen & Partner's Magnetic Product Co., Ltd in
Guangdong Province, China became a subsidiary of
TODA KOGYO

1999
Facilities for manufacturing
Hydrotalcite newly added to
Onoda Plant

Application of thewet synthesis
method to materials
other than iron

1994
Development of a combustion
catalyst which suppresses
generation of dioxins

Examples of use of adioxin-suppressing catalyst(garbage bags, cushioning material)

2010

Example of use of barium
titanium trioxide

Hydrotalcite

1996
Facilities for manufacturing color 2006
toner carrier materials newly
Manufacturing equipment of antenna
sheets for IC tags added to Otake Plant
added to Otake Plant

Color toner carrier

2020

2003
2004
Manufacturing facility ofcathode materials for lithium Facilities for manufacturing Barium titanium trioxide
added to Onoda Plant
ion rechargeable battery
newly added to Onoda Plant

Metal-compatible RFID tags

2011
Manufacturing equipment of NFC
Ferrite sheets for use in smartphones added
to Otake Plant

Ferrite sheet

TODA KOGYO CSR Report 2021

5

TODA KOGYO Group s Product Group familiar to Consumers
Chemical products are used in various forms as a part of our everyday lives.
TODA KOGYO Group s materials contribute to downsizing, weight reduction and increasing the performance of automobiles, consumer electronics, information equipment, etc.
Under the slogan of Fine Materials for the Future , we will continue to create new values
utilizing the most advanced material technologies.

Refrigerator door gaskets

Inductors
Ferrite sheet for wireless charging

Capacitors
Motors for washing machine

Films for touch panels
Magnetic toner and carriers

Lipstick
Magnetic tickets

Motors for air conditioners
Fan motors

Combustion catalysts
Industrial catalysts

Rust preventives for a steel frame

Paints for automobiles

Colored pavement

Lithium ion rechargeable battery

Bengala lattice
Films for a plastic greenhouse

Brake

MotorsThe line in the center of the road

6

TODA KOGYO CSR Report 2021

Electronic circuit components

Ship bottom paints (rust preventives)

TODA KOGYO CSR Report 2021

7

Top Message

Director and Executive Oﬃcer Message

Thank you very much for your continued support of TODA KOGYO Group. We hereby reporton our most recent Group CSR activities with this report.
In the past few years, natural disasters such as heavy rains have become more frequent worldwide, and we have come to realize that climate change and environmental destruction are advancing more and more. We, as the Group, are determined to address environmental and social
issues through our CSR activities, and at the same time, we are determined to further promote
the building of a sustainable society through our business activities.
In addition to environmental issues, there are many other social issues that need to be addressed, such as the declining birthrate and aging population, promotion of diversity, andstrengthening of governance. We have formulated a medium-term business plan, Vision 2023, inorder to promote eﬀorts to address these social issues at each of the Group's operating companies and organizations in line with clear numerical targets.
The markets targeted in Vision 2023 are mainly in the ﬁelds of automobiles, home appliances,
communication equipment, and paints, which are an extension of our business activities to date.
In addition to adding more value to our products through development activities, we will
strengthen our supply chain in order to build a strong structure that can withstand changes inthe external environment.
In addition, from ﬁscal 2024 onward, we plan to commercialize environment-related materials
that will help reduce the burden on the environment, as part of our Go Beyond 200! strategy tocontinue to grow even beyond our 200-year anniversary. We are determined to work together asa group to grow our business into one that rivals that of the automotive, home appliance, andcommunication equipment industries.
I would like to ask for your continued understanding and support as we strive to grow together
with all of our stakeholders.

The environmental issues facing Japan are increasing day by day,and it has become essential to focus on the environment from various perspectives in our daily business activities, such as global
warming, ocean pollution, and explosive population growth. Amongthese issues, the issue of CO2 has been taken up by countries aroundthe world as an issue that has a direct impact on business activities
and is inseparable from them. The EU and other countries are
already in the process of implementing LCA (Life Cycle Assessment)
regulations as part of their trade regulations, and it can be predictedthat this will have a signiﬁcant and direct impact on corporate activities. Under such circumstances, we have been one of the ﬁrst companies to start developing environmental materials in the past, and
we already have several products that have been materialized, but
we would like to further develop products and manufacturing methods that are carbon neutral and increase our contribution.

Director and Senior Executive Oﬃcer

Tetsuo Tsurui

President and CEO

Shigeru Takaragi

Director and Senior Executive Oﬃcer

Hiroshi Oka

The Group is working to reduce greenhouse gas emissions, conserve and improve the global environment through soil and water
puriﬁcation, and develop activities to achieve the SDGs.
In May 2019, we formulated the TODA KOGYO Group Environmental Vision 2033, setting speciﬁc goals and working to achieve
them. Going forward, we will further accelerate the development
and manufacture of environmentally friendly products to contributeto energy conservation, downsizing, weight reduction, and higher
eﬃciency in a wide range of business ﬁelds, including automobiles,
home appliances, and information equipment.
We will also position ESG management as a medium- to long-term
management strategy and focus on it on an ongoing basis, disclose
the results of our ESG management activities as appropriate, andengage in corporate activities that will win the sympathy and trustof our many stakeholders. We would like to ask for your continued
support and guidance in these endeavors.

In order to realize our management principle of contributing to society at large through attractive and original new materials and solutions, we will not only engage in social contribution activities
through CSR activities, but will also aim to capture and provide as
many business opportunities as possible where we can utilize ourstrengths in connection with the SDGs by responding quickly tochanges in the social environment in the present and future.
Furthermore, in an environment where eﬀorts to become carbon
neutral are becoming extremely important, we will work together indevelopment and manufacturing to see if we can contribute to society not only by reducing greenhouse gas emissions in manufacturing,
but also by absorbing and removing them.

Director and Senior Executive Oﬃcer

Tsuneaki Kubo

8

TODA KOGYO CSR Report 2021

TODA KOGYO CSR Report 2021

9

Business Overview (Fiscal 2020)

Medium-term Business Plan (FY2021 - FY2023)

Basic Policy for Business Activities
With a mission to contribute to solving social issues through business activities , TODA KOGYO Group
has achieved growth by responding to social issues and the most advanced needs of the time. Recently, we
have supported the basic infrastructure of industry by having close relationships with many industrial ﬁelds
including automobile, electronics, etc. through our materials. With the spread of the novel coronavirus disease (COVID-19), the environment is changing day by day. We not only solve customer issues, but also
deal with our own problems. By combining abilities of materials, our own abilities and our partners' abilities, we will solve these problems and continue to create new values.

Business Overview of ﬁscal 2020 (April 1, 2020 - March 31, 2021)
In terms of the business environment during ﬁscal
Fiscal 2019
Fiscal 2020 Unit: million yen
2020, although both the global economy and the JapaSales
8,565 8,925
8,652
nese economy were severely aﬀected by the coronavi8,171
7,486
6,991
6,637
6,744
rus, economic activities gradually recovered due to the365
implementation of infection control measures such as
Operating income
119vaccinations and large-scale economic stimulus mea46
1Q
2Q
3Q
1Q
2Q
sures in various countries.
4Q
3Q
4Q
▲113
In the ﬁrst half of the ﬁscal year under review, the
▲196
▲222
▲277
▲322
Group was also strongly aﬀected by the coronavirus,
Robust 5G market, signs of market
Slowdown of the Chinese
Magnets and pigments businessrecovery due to easing of trade
recoveryeconomy due to US-China
and demand for core businesses such as magnet materibetween the U.S. and China
Derivative materials sales growthtrade friction
Change in sales product mix
als and coloring materials was sluggish. However, sales
Aggressive cost reduction activities
Strongly promote cost reduction andMarket slowdown due to spreadincreased in the second half, driven by the recovery ofother initiativesof the coronavirus
economic activities in Japan and overseas, especially in
China. In particular, demand for magnet materials increased in line with the electriﬁcation of automobiles,
etc., and demand for dielectric materials for multilayer ceramic capacitors used in ICT equipment wasstrong, resulting in sales of 29,024 million yen and operating income of 11 million yen.
●

●

●

●

●

Communication with shareholders and investors

Vision2023

We will celebrate the 200th anniversary of our founding in 2023. In order to deepen and develop thetechnologies we have cultivated since our founding and to further promote our eﬀorts to create new value
in line with changes in the social environment, we have formulated a three-year medium-term businessplan, Vision 2023, which was announced on August 4, 2021, for 2023. In addition, as a materials manufacturer, we are working on medium and long-term development themes beyond that point, and we are now inthe process of formulating Go Beyond 200 as our vision for ﬁscal 2024 and beyond.

Numerical Targets for Consolidated Performance

For ﬁscal 2023, we have set a target of 36.5
billion yen in sales, 1.4 times the ﬁscal 2020
target of 26.2 billion yen(note: sales for ﬁscal 2020 are shown as reference ﬁgures after applying the new accounting
standard for revenue recognition).
Operating income for ﬁscal 2023 is set at 2.3
billion yen.

Strategic Investment

We plan to invest approximately 5 billion yen
over the next three years in Vision 2023. We
expect to invest 1.0 billion yen to strengthen
our production capacity for electronic materials,
2.5 billion yen to maintain and upgrade existing
facilities and infrastructure, and 1.5 billion yen
for new businesses such as next-generationelectronic materials and environment-relatedmaterials, which we aim to commercialize
under Go Beyond 200 . In addition, we will
actively invest to implement ESG initiatives.

Numerical targets for consolidated performance(unit: 100 million yen)
Fiscal 2020
(results)

Fiscal 2021

Fiscal 2022

Fiscal 2023

Sales

262

310

345

365

Operatingincome

0.1

17

19

23

(Operating
margin)

0.04%

5.5%

5.5%

6.3%
Vision 2023
investment amount(approximate)

Details of capital investment■Increase inproduction andreinforcement

Strengthen production capacity forelectronic materials■Renewal andMaintenance and renewal of existing
improvement of facilities and infrastructure, etc.
facilities
Investment for Go Beyond 200■New business(Next generation electronic materials,
environment-related materials, etc.)

Total

1 billion yen
2.5 billion yen
1.5 billion yen
5 billion yen

ESG Initiatives
Environment

SocialGovernanceInitiatives to date・Development of environmentallyfriendly products
・Catalyst for promoting complete
combustion
・CO2 ﬁxation during manufacturing
・Use of clean electricity

・Improvement of telework
・Establishment of the Nomination andCompensation Advisory Committee
environment
・Support for childcare and nursing ・Strengthening the independence of the
Quality Assurance Department
care・Support for the activities of people ・Digitalization of the exercise of voting
rightswith disabilities

Future initiatives

In addition to the ordinary general meeting of shareholders and the biannual business report meetings forﬁnancial results, we hold individual IR meetings as a forum for dialogue with shareholders, investors, andsecurities analysts.
In ﬁscal 2020, we started video distribution of business report meetings from the ﬁrst half of the ﬁscal year
(distributed in December 2020), and individual IR meetings were also held online. In ﬁscal 2021, we held afull-year business report meeting for ﬁscal 2020 (distributed in June 2021), and at the 88th Annual General
Meeting of Shareholders, we have digitized the exercise of voting rights.
We will continue to promote more active communication with our shareholders and investors.

Formulation of Medium-term
Business Plan - Vision 2023 -・Development of CO2 adsorbent
・CO2-free hydrogen production
technology
・Adsorbent for water puriﬁcation
・Challenge to become carbon
neutral・Acceleration of actions to foster
the next generation
・Promotion of active participationof women・Initiatives to promote the active
participation of senior citizens
・Development of digital humanresources

・Strengthen transparency andindependence of the Board of
Directors
・Strengthen quality control
・Strengthen Group governanceVideo of ﬁscal 2020 full-year business report meeting

10 TODA KOGYO CSR Report 2021

TODA KOGYO CSR Report 2021 11

Medium-term Business Plan (FY2021 - FY2023)

Initiatives for FY2024 and beyond

Magnet Materials Business

Magnet materials are mainly used in motors for automobiles andhome appliances, and the market is expected to continue to expand in
the future. We will promote the global development of materials forbonded magnets, which are composites of magnetic powder and resin.
【Materials development】We are working to improve neodymium
powder and composite technology with resin to improve heat resistance and reliability suitable for automotive applications.
【Supply chain】As part of our eﬀorts to accelerate the establishmentof an integrated production system from materials to parts, we havemade Jiangmen & Partner's Magnetic Product Co., Ltd, a specialized
manufacturer of bonded magnet injection molding, a subsidiary With
this, we aim to achieve faster product development, stable supply,and enhanced service activities.

RawmaterialResincomposite

Powder

Molding

Magnet materials business sales targets

10 billion yen

Further into the Future −Go Beyond 200−

We will also work to develop new businesses with an eye on growth beyond ﬁscal 2024. The Group willdevelop materials that contribute to the evolution of the electronics industry and reduction of environmental impact by deepening the ﬁne particle synthesis technology cultivated in the iron oxide business, aiming
to contribute to the realization of a sustainable society and achieve business growth.

Soft Magnetic Materials Business

2020(Results)

Materials

2021

Parts

2023(FY)

2022

End
products

The Group s business domains

While the use of electromagnetic waves is increasing due to theprogress of electriﬁcation of automobiles, various noise problems, such as interference between electronic devices, are becoming more apparent. For this reason, the Group has been developing countermeasure parts using a variety of soft magnetic
materials according to the characteristics of the noise.
In addition, with the rapid expansion of EVs expected in the
future, the commercialization of non-contact power supply systems is expected. We will also proceed with the development oflarge ﬂexible ferrite plates for automotive use based on the technology we have cultivated for ﬂexible ferrite sheets.

Rawmaterial
Iron oxide

Magnetic
powderCompoundMagnet

Rotor

Motor

Automobiles

PowderResincomposite

Thin
ﬁlm

Thick ﬁlm
large format

Rawmaterial

PowderDispersions

Materials

Iron oxide
Dielectric materials business sales targets

1.7 billion yen

2020(Results)

2021

2022

2023(FY)

Parts

End
products

Electronic
components

Smartphones

The Group s business domains

Titanium solution

12 TODA KOGYO CSR Report 2021

Barium titanium trioxide

MLCC

Tapes

Adhesives

Molding

Sheet

Parts

End
products

Variousnoise
reduction
components

Automobiles

The Group s business domains

Dielectric Materials Business

Dielectric materials are used in multilayer ceramic capacitor(MLCC) applications, which are often used in ICT equipment andelectric vehicles, and the market is expected to expand in the
future. We will promote the development and manufacture ofhigh value-added products.
【Materials development】We will reﬁne our manufacturing technology for ﬁne particles of 200 nm or less to contribute to theminiaturization and reliability improvement of MLCC.
【Supply chain】In order to simplify the manufacturing process
and reduce costs, we aim to provide products in dispersion form.
It can also reduce greenhouse gas (GHG) emissions by eliminating the drying process, which requires large amounts of energy,
and eliminates the need for redistribution at the customer.

Go Beyond 200

Magnetic
powders

Compounds

SheetsPlatesEnvironment Related Materials Business

Serious problems such as abnormal weather due to global
warming are occurring all over the world, and various initiatives such as the SDGs and the adoption of the COP21 Paris
Agreement have been launched to realize a sustainable sociAchieving carbon neutralityety.
In accordance with the TODA KOGYO Group EnvironmenProviding safe watertal Vision 2033 formulated in May 2019, the Group is actively
carrying out development activities to solve these issues.
【Initiatives to address climate change】
We are working on the development of a DMR method that can simultaneously produce CO 2 -freehigh-purity hydrogen and carbon nanotubes, and are collaborating with AIR WATER INC. on the commercialization of this method. (Refer to pages 14 and 15.)
【Initiatives for a recycling-oriented society】
The market for lithium-ion batteries is rapidly expanding as the number of EVs shipped worldwide
increases. In order to help solve resource issues, we are developing a way to recycle lithium-ion batteries.
【Initiatives to provide safe water】
In the JMP report released by UNICEF WHO in 2019, it was reported that approximately 2.2 billion
people in the world do not have access to safe and controlled drinking water. In order to provide safe
water, we are working on the development of functional adsorbent materials that remove harmful elements, and are collaborating with JDC Corporation for commercialization.

TODA KOGYO CSR Report 2021 13

Feature I Eﬀorts to Realize a Decarbonized Society

Research and development of highly eﬃcient hydrogenproduction system using iron-based catalyst throughdirect methane reforming*1
New Energy and Industrial Technology Development Organization (NEDO) invited applications for theHydrogen Utilization Research and Development Project and Development of Carbon Dioxide-Free Hydrogen Production Technology Using Hydrocarbons project, and the Research and Development of High Eﬃciency Hydrogen Production System Using Iron-based Catalyst by Direct Methane Reforming(implementation period: April 23, 2021 to February 28, 2023) jointly proposed by TODA KOGYO and AIR
WATER INC. was adopted.
This research and development project aims to develop a hydrogen production process and system thatcan eﬃciently produce CO2-free hydrogen (purity of 99.99% or higher) from methane, the main componentof natural gas and biogas, using the DMR method with a highly active iron-based catalyst, which is diﬀerent from existing hydrogen production methods.
Initiatives in NEDO s pioneering research and development project for hydrogen utilization
Study using pilot-scale facilities(1) Design of highly
active iron-based
catalysts for DMR
reaction(2) Establishment of DMR reaction speciﬁcation and control technology
for stable production of high concentration hydrogen
Recycled gas for raw materials

Al2O3, etc.

Physicalmixing Fe2O3, etc.
methodRaw materials
Methane gas

Reaction gas

DMR reactor
Impregnation
method(Hydrogenconcentration:
70% or above)

Catalyst
600to750℃

Solidsolution
methodReaction equation : CH4 → 2H2 + C

Responsible: TODA KOGYO

Responsible: TODA KOGYO

Multi-walled CNT + catalyst（0.020Ω・cm or less*）(5) Performance evaluation andapplication development of CNT(3) Establishment of a highly
eﬃcient and high-purity
hydrogen puriﬁcation process

Hydrogen
puriﬁcation
system

＊1. Direct methane reforming (DMR) method
The DMR method is a clean reaction (reaction
equation (1)) that uses natural gas and other raw
materials to produce hydrogen and carbon materials
such as CNTs in the presence of an iron-based catalyst.
Compared to the steam reforming method of natural gas(reaction equation (2)), which is currently widely usedindustrially, the DMR method does not produce methane
derived CO 2 during the production process, in otherwords, it is a CO2-free reaction, although the amount ofhydrogen produced per molecule of methane is half.

Hydrogen(4) Basic design of actual scale plant and development of commercialization scenario
Responsible: TODA KOGYO, AIR WATER

Based on our DMR catalyst preparation technology and DMR reaction technology, and the gas puriﬁcation technology of AIR WATER INC., through the above-mentioned eﬀorts, it will be possible to stably produce hydrogen with a purity of 99.99% or higher, which is generally used for industrial purposes. At thesame time, we aim to complete a highly eﬃcient hydrogen production system in which the quality of themulti-walled carbon nanotubes (CNTs)*2 obtained as a byproduct is equivalent to that of other companies'
products in terms of conductivity (powder resistance of 0.020 Ω-cm or less (density of 1 g/cc)). In thispilot-scale reactor, electricity is used for heating energy, but in the future, we aim to provide turquoisehydrogen*3 by using renewable energy, etc.
As for the timing of the social implementation of this high-eﬃciency hydrogen production system, we would
like to start operation of the ﬁrst commercial plant in ﬁscal 2024, and we aim to reduce the hydrogen production cost to less than 30 yen/Nm3 by 2030, which is the target set by the Japanese government in its Basic
Hydrogen Strategy, through market launch of the byproduct CNT as a high value-added product.

Catalyst (600 to 750°
C)＋

C(CNT, etc.) …（1）[Steam reforming method]
CH4 ＋ 2H2O → 4H2 ＋ CO2 …（2）Catalyst (600 to 850°
C)

CNTs are expected to become a dream new material because of their excellent features such as light weight,
high strength, high electrical and thermal conductivity, etc. They are being used in a wide range of applications
including LIB conductive auxiliaries, conductive ﬁllers, reinforcement materials, and electromagnetic wave
absorbers. CNTs can be classiﬁed into single-walled CNTs (SWCNTs), which are formed by rounding a single
graphite hexagonal mesh plane into a cylindrical shape, double-walled CNTs (DWCNTs), which are nested
layers of SWCNTs, and multi-walled CNTs (MWCNTs), with diameters ranging from a few nm to several tens of
nm and lengths ranging from a few µm to several mm.
External noise
Shielding eﬀect
Internal noise

Resin bumper electrostatic coating
Resin heat sink
(Electroconductive ﬁller)(Thermally conductive ﬁller)(99.99% or above)
Responsible: AIR WATER[DMR method]
CH4 → 2H2

＊2. Carbon nanotube (CNT)

Hydrogenrecoveryrate(85% or above)＊Figures based on a density of 1g/CC

14 TODA KOGYO CSR Report 2021

The high-eﬃciency hydrogen production system to be constructed in this research and development willrealize the provision of inexpensive CO 2-free hydrogen by maximizing the use of existing city gas infrastructure, with the goal of quickly cleaning up the existing industrial hydrogen supply chain. This system
will accelerate eﬀorts to realize the 2050 carbon-neutral, decarbonized society declared by the Japanese
government in October 2020, and will lead to increased value for companies that use hydrogen, as well as
contribute to the development of domestic industry.

Electromagnetic wave shielding material(Electroconductive ﬁller)

LIB electrode material(Conductive agent)

Examples of applications of multi-walled CNTs
＊3. Turquoise hydrogen
This is hydrogen produced by the pyrolysis of methane. There are a variety of methods for generatinghydrogen, and it is becoming increasingly common to classify the hydrogen produced by these methods by color,depending on the environmental impact of the production process. The hydrogen produced by pyrolysis using
renewable or carbon-neutral energy sources, where the solid carbon produced during the production process is
not released into the atmosphere as CO2, is called turquoise hydrogen.

Color

Characteristics

Green hydrogen

Hydrogen is produced by electrolysis of water using electricity derived fromrenewable energy.

Turquoise hydrogen

Produces hydrogen through the thermal decomposition of methane, producing
solid carbon as a by-product instead of CO2. The operation of the reactor must bederived from renewable or carbon-neutral energy.

Blue hydrogen

Although hydrogen is produced from fossil fuels such as coal and natural gas, theCO2 generated is separated and stored underground or in the ocean without being
released into the atmosphere.

Gray hydrogen

Although hydrogen is produced from fossil fuels such as coal and natural gas, itreleases CO2 and CO.
Source: National Hydrogen Strategy, German government

TODA KOGYO CSR Report 2021 15

Feature II Exhibiting at an Automobile Industry Exhibition
The automotive industry is undergoing a period of great change that is said to occur once in a century,and new technologies are being developed and introduced, collectively known as CASE, which stands forconnected, autonomous, shared, and electric. As a result, the use of electronic components is increasing,devices not used in the past are being adopted, and the composition of components is changing dramatically. Our magnetic materials and functional materials are used to improve the quality and characteristics
of various parts and to add new functions, and we see this as an opportunity to expand our business. Up
until now, we have only been able to introduce our products to speciﬁc customers, but in order to make our
products known to a wider audience, starting in ﬁscal 2020, we will be participating in several exhibitions
where the latest technologies in the automotive industry gather to raise awareness.
In ﬁscal 2020, we exhibited at the Automotive World - Advanced Automotive Technology Show, a leading automotive exhibition organized by the private sector. We participated in the Nagoya Show (Portmesse
Nagoya) from October 21 to 23, 2020 and the Tokyo Show (Tokyo Big Sight) from January 20 to 22, 2021.
At the Nagoya Show, we introduced magnet materials, ferrite sheets for wireless power supply, materials
for electromagnetic wave countermeasures, and water vapor adsorption and desorption materials. Although
the exhibition was held during coronavirus pandemic, the overall number of visitors was higher than theprevious year as a result of the organizer's thorough implementation of infection prevention guidelines andthe timing of the resumption of exhibitions that had been continuously canceled due to the lifting of thedeclaration of a state of emergency issued in April 2020. The number of visitors to our booth was 220(1.1% of the total number of visitors), including some automakers and tier 1 suppliers (companies that provide parts to automakers).

Views of the Automotive World Nagoya Show site

At the Tokyo Show, the booth area was expanded and products including pigments, barium titanate, environmental puriﬁcation materials, and carbon nanotubes were additionally exhibited. Unfortunately, a stateof emergency was declared in the Tokyo metropolitan area again on January 8, just before the exhibition,and some automobile and related parts manufacturers were unable to come to the exhibition or canceled
their participation. Although the total number of visitors decreased signiﬁcantly to less than 40% of the previous year's total, our booth was visited by 191 people, including material manufacturers (1.3% of the total
number of visitors). Meanwhile, 338 people accessed the online introduction site during the exhibition
period, which was visited by many automakers and tier 1 suppliers from overseas.

There were many people who got to know our company for the ﬁrst time at both exhibitions, and some ofthem became interested through product introduction and information exchange. In particular, there was a
sharp increase in the need for noise countermeasures as automobiles become increasingly electriﬁed, andwe tended to receive many inquiries about electromagnetic wave countermeasure components that use ourferrite materials. We are currently conducting interviews and sample work with more than 50 client companies, and we are taking steps so that our products will be adopted.
In ﬁscal2021, we exhibited at the Automotive Engineering Exposition: Automotive Engineering Exposition
2021 ONLINE, held from May 26 to July 30, 2021. This exhibition is organized by the Society of Automotive Engineers of Japan, Inc., and is the largest technology exhibition in Japan for automotive engineers topresent the latest technologies and products to the world. The actual, physical exhibition, which wasscheduled to be held in Yokohama in May and in Nagoya in June, was canceled due to the coronavirus,
and we were only able to participate in the online exhibition (458 companies exhibited). At this exhibition,
we created new application guides by use and product introduction videos to introduce our products in aneasy-to-understand manner. During this period, our booth was visited by 1,138 people (2.2% of the total
registered visitors), and we are now approaching and following up with most of the domestic automobile
manufacturers as well as tier 1 suppliers that had not visited us before. We are also planning to exhibit at
Automotive World in October 2021 and January 2022 consecutively.

Some of our contents at the Automotive Engineering Exposition 2021 ONLINE

By exhibiting at exhibitions, we have been able to improve our introduction methods, meet directly with
automobile manufacturers, and ﬁnd new business opportunities. While we believe that online exhibitions
will increase in the future, there is information that can only be obtained face-to-face, so we will continue
to utilize both means to acquire new customers. In response to the once-in-a-century revolution, we willcontribute to the future development of automobile-related technologies with our technology that has 200
years of history since foundation.

We will improve our materials and make them more appealing.
At face-to-face exhibitions, there are cases where useful information andcontacts can be found through explanations and conversations. However,this is not possible online, so we have struggled to attract customers andmake appointments. In the future, it will be important to create materials
that are easy to read and interesting, so we would like to enhance ourintroductory videos to further emphasize our products.
Marketing Department, Sales Division

Wataru Kimura

View of the Automotive World Nagoya exhibition site

16 TODA KOGYO CSR Report 2021

TODA KOGYO CSR Report 2021 17

Management
Corporate GovernanceCompliance

Implementing System

TODA KOGYO adopts a form of corporate governance system based on the framework of governanceby the General Meeting of Shareholders , the supreme decision-making body, the Board of Directors , adecision-making body concerning the execution of important operation and the Board of Corporate Auditors , a supervising body for business operation.
The Board of Directors meets not only once a month, but also holds extraordinary meetings as necessary to ensure prompt and accurate decision-making. In addition, by appointing three outside directors,
we have made the monitoring and supervision of mutual execution of duties by directors more eﬀective.
Furthermore, the Board of Corporate Auditors, which includes three highly independent outside auditors,
conducts audits of the Board of Directors and other important meetings to ensure a highly objective andneutral monitoring and supervision system for business execution.

Establishment of the Nomination and Compensation Advisory Committee

The Nomination and Remuneration Advisory Committee has been established as a voluntary advisory
body to the Board of Directors for the purpose of enhancing corporate governance by strengthening thefairness, transparency, and objectivity of procedures related to the nomination and remuneration of
directors and executive oﬃcers. In response to inquiries from the Board of Directors, the committee deliberates on matters related to the appointment and dismissal of directors and executive oﬃcers, as well as
matters related to remuneration, and reports to the Board of Directors.

Evaluation of the Eﬀectiveness of the Board of Directors

We have conducted a questionnaire survey of all directors and corporate auditors to determine theeﬀectiveness of eﬀorts to enhance the operation of the Board of Directors, and have deemed that theeﬀectiveness of the Board of Directors is generally maintained. In the evaluation of the eﬀectiveness of
the Board of Directors, issues were also identiﬁed and countermeasures are being considered, and we will
conﬁrm the status of improvement and continue to take measures to improve and enhance the operationof the Board of Directors.
Nomination &Remuneration
Advisory
Committee

General Meeting of Shareholders (highest decision-making body)Appointment/dismissal

Appointment/dismissal

Consultation

ReportingCompliance
Committee

Board of Directors

Appointment/dismissal
Monitoring
and auditing Board of Corporate

Auditors

Management monitoring Selection, dismissal,
and supervision

RiskManagement
Committee

Monitoring
and auditing

Operational audit

Instructions
Reporting

Representative
Directors

Operational Departments
Corporate governance system outline drawing

18 TODA KOGYO CSR Report 2021

Risk Management

Relateddepartments

Compliance Promotion
Committee

Risk Management System

Having established the Risk Management Committee (which is chaired by president and CEO) composed
principally of executive oﬃcers, the Group regularly discusses its risks that are becoming apparent. In addition, having established responsible departments for respective risks (such as disasters etc. / BCP, product quality, procurement, information security) surrounding the Group, we make eﬀorts for the formulation of basic plans, the implementation of measures and the evaluation & improvement at the responsible
departments concerned. The Risk Management Promotion Committee which consists of managers andmembers of responsible departments for risks, shares the progresses and the problems in each activity andreports them to the Risk Management Committee. Having
Board of Directors
received said report, the Risk Management Committee apReport
propriately conducts corrective actions and reports on
Chairman: President
Risk Management
these risk management activities to the Board of Directors.
Members : Executive oﬃcers & others
Committee
Initiatives: Assessment of the risks that are
As a result, the Board of Directors is promoting the estabInstructions
becoming apparent within the Group
Reportfor corrections
lishment of the general management system where the
Chairman: General Manager of Corporate
Risk Management
Planning Department
risks of the entire Group are exhaustively and continuPromotion Committee
Members: Managers and members of departments
responsible
for risk management
ously monitored.
Initiatives: Implementation of countermeasures for

Initiatives of the Risk Management Promotion Committee

respective risks (such as disasters etc. /BCP, product quality, procurement,
information security) surrounding the Group

Toward Implementation and Standardization of the Basic Plan

Financial audit

Management Conference

Financial Auditors

Outside legal experts

Internal Audit
Department

Monitoring Monitoring
and auditing and auditing

Whistleblowing and Consultation System

One of our Guidelines for Action is that each and every one of us will be corporate citizens who arefaithful and fair and will act with a strong sense of ethics, and based on this guideline, we are working tomaintain and improve compliance within the Group.
As part of these eﬀorts, we have established a reporting and whistleblowing system (a so-called
helpline ) with internal personnel and external lawyers as the contact point in accordance with theCompliance Promotion Regulation to prevent violations of laws, regulations and social ethics and to
detect them at an early stage. One woman is assigned as the contact person both inside and outside thecompany to create an environment where it is easy to consult on compliance and harassment cases.
In order to protect the consulter, this system oﬀers a wide range of whistleblowing methods, including
oral, telephone, e-mail, and written, and allows for either non-anonymous or anonymous use. The whistleblowing contact point is designed to ensure that the contents of the whistleblowing are kept strictly conﬁdential, the fact that a consultation was held and its contents are kept secret, and that the whistleblower is
not subjected to any disadvantageous measures.
Whistleblower
The whistleblowing contact point shall promptly report thedetails of the consultation to the Compliance Promotion Division, request an investigation of the facts and consideration of Internal (whistleblowing
External (lawyers)
contact point)
measures to prevent recurrence, etc. If, as a result of the investigation by the Compliance Promotion Division, there is a violaCompliance Promotion Bureau
tion, appropriate measures and necessary countermeasures for
Investigation, corrective action,
the future shall be promptly taken.
Reportingprevention of recurrence

We have been building the above system since ﬁscal 2018, and by the end of ﬁscal 2019, each
responsible department formulated a medium-term basic plan and a speciﬁc plan for ﬁscal 2020. In
ﬁscal 2020, due to the spread and prolonged duration of the coronavirus, some plans were not implemented, such as large-scale drills and external training, but each responsible department is promoting
risk reduction activities in line with the plan. Each responsible department conducted a semi-annual
review and conﬁrmation of progress, and reported the results to the Risk Management Committee. In
ﬁscal 2021, each responsible department will formulate an annual plan based on the previous year sreview and strive for further risk reduction.
TODA KOGYO CSR Report 2021 19

Product Quality
Situation regarding Introduction of Management Systems

For Improving Product Quality
TODA KOGYO Group determines the quality policy; Provide
qualities which obtain the customers' trust and satisfaction by
developing continuous improvement activities in accordance= Monozukuri that creates a better future =with the Toda Spirits, which consist of six spirits of Monozukuri*),and promotes the quality assurance activities as shown below.
Monozukuri that prioritizes safety and security
Quality Assurance Department as a promoter, is an organizaMonozukuri that pursues the trust and satisfaction of customers and business partners
tionthat is independent from sales, development and manufacMonozukuri that challenges improvement with the power of each individual
turingdepartments, so as to promote quality assurance activiMonozukuri that creates originality and marketability
ties
from
a neutral standpoint, more eﬀectively.
Monozukuri that pursues stable and repeatable quality and eﬃciency
Quality Assurance Department organizes Quality Assurance
Monozukuri that is environmentally friendly, globally oriented
Committee, shares information with the quality assurance department of each the Group s plant, and has established a system to resolve quality issues throughout theentire company. In addition to performing quality audits for the manufacturing departments of the Group,
Quality Assurance Department quickly grasps complaints and claim information delivered to sales departmentsfrom customers, and timely responds to the important concerns. Quality Assurance Department also identiﬁes
causes of individual complaints, claims, etc. Moreover, Quality Assurance Department plans and implements
measures to prevent recurrence of complaints, claims, etc. and performs veriﬁcations and horizontal deployment of them from the perspective of workplace.
In the event of a serious quality problem, the Risk Management Committee reports the problem to the management and discusses and decides on a quick response. In addition, quality information is shared at the Management Meeting, and a system is in place to ensure that relevant departments respond to customers.
In ﬁscal 2021, we will strengthen our quality assurance system and proactively promote prevention activities
by strengthening risk management. In addition, by cooperating with Human Capital Development Department that was established based on the idea that Human capital development through Monozukuri, we will
work on human capital development and deepen quality assurance activities.
*) Monozukuri means manufacturing.

Quality Assurance Activities

Management Meeting (TODA KOGYO)
Risk Management Committee

ReportResearch & Development Division
Consultation

Technical support

Onoda Plant

Otake Plant

Information
gathering
Reporting ofcorrections

Guidance

Okayama Plant
Communication ofcomplaints etc.

Sales Departments

20 TODA KOGYO CSR Report 2021

Guidance

Instructions

Quality Assurance Committee (Quality Assurance Department)
Horizontal
deployment

ISO9001
ISO14001
ISO45001
Onoda Plant
Otake Plant

ISO9001
ISO14001

Support
Qualityaudit

Human Capital Development Department
Safety/quality

Tokyo Shikizai Industry Co., Ltd.

Quality education
Human resources development

Other manufacturing aﬃliates

ISO9001

Okayama Plant
TODA Ferrite KOREA Co., Ltd.
TODA ISU CORPORATION
Toda Magnequench Magnetic Material (Tianjin) Co., Ltd.
Toda Plastic Magnet Material (Zhejiang) Corp.
Zhejiang Toda DMEGC Magnetic Co., Ltd.
Zhejiang United Pigment Co., Ltd.
Toda Advanced Materials Inc.
Toda Kogyo Asia (Thailand) Co., Ltd.

TODA MAGNET (SHENZHEN) CO., LTD.
Zhejiang Gaolian Packaging Products Co., Ltd.
Otake Creative R&D Center: Product Development Group

ISO14001
Otake Creative R&D Center

Situation regarding Customers' Inquiries

The Group is trying to respond to customers inquiries regarding the products, CSR, etc. promptly andwith sincerity, for the purpose of maintaining and improving the quality of our products.
We strive to resolve the issues identiﬁed in the responses to customers' inquiries, in cooperation with therelevant departments.
As shown in the ﬁgure below, while most of the inquiries we receive are related to chemical substances, inﬁscal 2020, we also received a large number of inquiries related to the response to the coronavirus(classiﬁed as other ). The Group works diligently every day to respond to inquiries from its customers.
■Chemical substance related■Conﬂict minerals■Environment / quality system■BCP related

6％
9％

10％

Onoda
Plant

■Others

4％

2％ 4％
18％

System chart of quality assurance

Report(As of April 1, 2021)

3％

1. We perform quality audits for the purpose of conﬁrming compliance with requirements in the ISO9001
series and improvement of the quality assurance systems.
2. We conﬁrm the status of compliance with laws, regulations and other requirements.
3. In order to improve the qualities of products by the Group, we promote comprehensive quality
improvement by means of analyzing qualities, providing improvement guidance for related departments
and holding regular quality review meetings (Quality Assurance Committees).
We also provide quality education to development departments to ensure quality from the design stage.
4. We are working to strengthen the quality assurance systems of our overseas operating companies.
5. We are promoting human resource education to enhance on-site capabilities.

Identiﬁcation of causes of complaints etc.
Planning and implementation of measures to prevent
recurrence of complaints etc.
Conﬁrmation of progress and horizontal deployment
Promotion of preventive activities

The Group has acquired certiﬁcation under the following management systems and implements the
PDCA cycle in its business activities.

64％

24％

35％

Otake
Plant

5％

79％

Okayama
Plant

62％

Tokyo
ShikizaiIndustry72％

3％

Small Group Activities
Based on the idea that manufacturing is human capital development, the Group, led by the Human Capital Development Department, is promoting the creation of a corporate culture that enables employees torecognize problems in their own workplace and actively think about ways to improve.
We are now in the ﬁfth year of the 5S model activities to foster a 5S culture, which is the gateway to improvement. Through these activities, we are fostering the ability to eliminate problems and waste that we
ﬁnd, which is leading to the revitalization of the workplace.
In addition, we are promoting TQM training and activities for improvement based on 5S through small
group activities. The training program started in ﬁscal 2018 for managers and supervisors of manufacturing
workplaces, including those of subcontracting companies, and has come to an end in the past three years.
As a result of these trainings, the logical way of proceeding based on the QC way of looking at things andthinking and the QC way of problem solving has been seen in many small group activities.
In ﬁscal 2021, we are planning to conduct training for small group leaders, with the aim of establishing
TQM activities and taking them to the next level.

TODA KOGYO CSR Report 2021 21

Environment and Safety
Reduction of CO2 emissions through energy conservation (Scope 1, 2)2050 Carbon Neutrality
2018
1.24 billion tons

Emissions
Other GHG

Electricity

Absorption
and removal

2050
Actual 0 tons

189 million tons
Consumers 110 million tons
Industry
300 million tons
Transportation
200 million tons
Electricity
450 million tons

Emissions reduction

Non-electricity

Energy-related GHGs

The G20 Riyadh Summit was held in a teleconference
format over two days on November 21 and 22, 2020,
and the Japanese government reiterated its determination to achieve 2050 carbon neutrality, the goal of
reducing greenhouse gas emissions to virtually zero by
2050, and made this an international commitment.
In addition, it was stressed that it is necessary tochange the way of thinking that responding to global
warming will lead to growth, and that innovative innovation is the key to creating a virtuous cycle between
the economy and the environment. (Green growth strategy)

Emissions
Absorption
and removal

Initiatives by the TODA KOGYO Group

Endorsement of the Japan Climate Initiative (JCI)

After the Japanese government's declaration of 2050 carbon neutrality, we expressed our support for
the Japan Climate Initiative (JCI) message, Calling for an Ambitious 2030 Target for Japan to Realize
the Paris Agreement Goal, in April 2021. TODA KOGYO Group will proactively work toward 2050
carbon neutrality

Toward LCA regulations

In consideration of the LCA (life-cycle assessment) regulations being discussed in Europe, we recognized 2050 carbon neutrality as a common theme for the entire company in the business strategy stage,and held a kick-oﬀ meeting for 2050 carbon neutrality in July 2021 to start a company-wide initiative
involving the corporate planning departments, CSR & environment departments, business promotion
departments, procurement departments, production engineering departments, sales departments,
manufacturing departments, and other divisions.

In June 2019, the Group established the Environmental Vision 2033 and shifted from energy
conservation promotion led by energy managers (phase 1) to company-wide reduction ofenvironmental impact led by the Corporate Planning Department and the Environment Committee(phase 2).
（％）
120

Greenhouse gas emissions
phase２phase1 Environmental Vision
2033

100

Conversion from fossil fuels (Scope 1)

We use fossil fuels (heavy oil A, LPG, kerosene, and light oil) in our production processes, but we will
gradually switch to non-fossil fuels (biofuels, hydrogen, etc.) and electricity by 2050 in cooperation
with our supply chain.

Introduction of renewable energy (Scope 2)

Absorption and removal

From phase 1 to phase 2

We are continuously promoting the reduction of energy consumption per unit of production by recovering waste heat in production processes, improving operational eﬃciency, upgrading to equipmentwith high energy eﬃciency, and reviewing production processes.

We will switch to electricity with a lower CO2 emission factor on the power company menu, introduce solar power generation facilities for in-house consumption (on-site and oﬀ-site), and purchaserenewable energy certiﬁcates and credits in stages by 2050.

Reduction of CO2 emissions related to purchased raw materials, transportation, andcommuting (Scope 3)

As part of Scope 3, the Group will promote the reduction of CO 2 emissions by switching to lowcarbon raw materials, reviewing product transportation methods, and reviewing employee commuting
methods.

Provision of technologies and products that contribute to reducing environmental impact

The Carbon Recycling Fund Institute (CRF) is working to implement its recommendations throughclose collaboration with industry, academia, and government to achieve carbon neutrality by 2050.
As a member of CRF, our Group has introduced to CRF a chemical process for synthesizing environmentally functional materials (PVC stabilizer, agricultural polyurethane heat insulator) using CO2 fromboiler exhaust gas as a raw material.

■Leading example by CRF member: TODA KOGYO CORP.
TODA KOGYO CORP., based in Hiroshima City, Hiroshima
Prefecture, has developed a technology to obtain soda ash with thesame purity as that of the conventional ammonia-soda method byrecovering combustion exhaust gas containing CO 2 from in-house
power generation. By using the resulting aqueous soda carbonate
solution as a raw material for its own products, the company isimplementing carbon recycling in its own manufacturing process.
Sodium carbonate production plant

Energy conservation targets

Soda ashphase３
Environmental Vision
2050（Na2CO3）(Boiler)
Vinyl for greenhouses

Soda ashIntroduction of renewableenergy and non-fossil fuels
Scope-1,2

60（NaOH）

CO2

Reduction throughenergy conservation

80

CO2 absorption

Caustic soda

40

（Na2CO3）

Reduction of external
procurement

Raw materials

PVC stabilize
Agricultural
polyurethane
heat insulator

Excerpt from CRF s Proposal for Carbon Neutrality by 2050

Environmentally functional materials
manufacturing plant

20
0
2010

2015

2020

2025

22 TODA KOGYO CSR Report 2021

2030

2035

2040

2045

2050

TODA KOGYO CSR Report 2021 23

Environment and SafetyEﬀective use of industrial waste

Reduction of environmental load
Basic Environmental Policy

TODA KOGYO Group conducts environmental management based on the ISO14000 series, and not
only recognizes environmental conservation as the mission imposed on global citizens, but also considers
environmental conservation activities and management activities coaxial. We take responsibility for Environmental Vision 2033, formulated as a desirable state of the Company, and work on these activities
across the entire Group, as well as conducting active disclosure of information and communication withlocal residents through responsible care.

Speciﬁc Code of Conduct

Amount of waste generated(Thousands of tons/year)
12
10

80

8

60

6

40

4

Promotion of Environmental Vision 2033

Toward 100th anniversary of establishment of our company in 2033, the Group formulated Environmental Vision 2033 , as a result of discussion on a desirable state as TODA KOGYO at 2033 among
executives and employees, from the view point of four principles of sustainability.
The G20 Riyadh Summit was held in a teleconference format over two days on November 21 and 22,
2020, and the Japanese government reiterated its determination to achieve carbon neutrality, the goal of
reducing greenhouse gas emissions to virtually zero by 2050, and made this an international commitment.
In response, in June 2021, the Group revised upward the greenhouse gas reduction targets in its Environmental Vision 2033.

Reduction of greenhouse gases

The Group has set the following targets for greenhouse gas reduction in its Environmental Vision
2033. (Target ﬁscal year: 2033)• Energy consumption per unit of production: 20% reduction(Thousands of tons/year) CO2 emissions (Scopes1+2)(compared to 2013)120• Renewable energy: 20% introduction
100• Sales-based GHG emissions: 40% reduction (compared to 2013)80• CO 2 emissions from transportation and commuting: 30%
60
reduction (compared to 2013)40
We are promoting the reduction of CO2 emissions throughout
20
the Group in order to become carbon neutral.
0
2013

2017

2018

2019

2020

0

Recycling rate

（％）
100

20

2

(1) Set and achieve high environmental conservation goals
In addition to complying with laws and regulations, all executives and employees shall take responsibility for
setting high goals that anticipate the expectations of society as Environmental Vision 2033 and strive to create
economic value through the realization of these goals.
(2) Promotion of innovative environmental technology development
All executives and employees shall promote the development of innovative environmental technologies thatcreate client value and are widely used by society, and promote the development of environmentally friendly
products.
(3) Continuous improvement with the participation of all parties
All executives and employees shall understand the impact of all business activities on the environment, and allparties shall participate in continuous improvement in pollution prevention and eﬀective use of energy andresources.
(4) Provision of environmentally friendly products and services
In providing products and services, executives and employees will strive to reduce the environmental impact
at all stages, from procurement policy and production to sales, distribution, use, recycling, and disposal, and will
work toward the formation of a recycling-oriented society.
(5) Raising awareness and promoting responsible environmental conservation activities
Executives and employees shall each individually pay attention to society at large, raise awareness throughactive learning, promote environmental conservation activities on their own responsibility, and promote initiatives for the conservation of biodiversity.
(6) Contribution to the realization of a sustainable society
Executives and employees shall contribute to the realization of a sustainable society by participating in andsupporting environmental conservation activities.
(7) Gaining the trust of society through communication
Executives and employees shall develop environmental conservation activities in cooperation with stakeholders and earn the trust of society through active communication.

24 TODA KOGYO CSR Report 2021

The Group has set the following targets for industrial waste in its Environmental Vision 2033. We willachieve zero ﬁnal disposal (landﬁll disposal) of industrial waste by recycling it. (Target ﬁscal year: 2033)• Amount of industrial waste: 30% reduction (compared to 2013) • Recycling rate: 100%
We are making progress in reducing the amount of industrial waste generated toward the target.

2013

2017

2018

2019

2020

0

2013

2017

2018

2019

2020

Development of environmentally harmonized products and technology

Under Environmental Vision 2033, we evaluate products and technologies supplied by the Group byclassifying them into three categories (Excellent: environmentally harmonized, Good: environmentallyconscious, Acceptable: standard). And we strive to make all the products and technologies supplied by
the Group to be classiﬁed into the category of Excellent: environmentally harmonized by 2033.

Initiatives for Establishing a Sound Material-Cycle Society

As an obligation of the manufacturer in accordance with Basic Act on Establishing a Sound MaterialCycle Society, the Law for the Promotion of Eﬀective Resources and the Green Purchasing Law, we takenecessary measures to reduce the waste etc. produced from raw materials etc. in carrying out businessactivities. If raw materials etc. can be Circulative Resources in the business activities, we ourselves takenecessary measures in order that they are cyclically reused properly. We ourselves also promote the formation of a recycling society by using recycled materials etc., and cooperate with the measures for establishing a sound material-cycle society, implemented by national or local public authorities.

Carbon Disclosure Project (CDP) s climate change questionnaire

Since 2016, we have been responding to CDP s climate change questionnaire and disclose initiatives for climate change to institutional investors etc.
In 2021, we received a score of C, the same as last year, and we will identify increasing environmental risks and new opportunities and reﬂect themin our management strategies.

Registration for the participation in the Environmental Reporting
Platform Development Pilot Project (Ministry of the Environment)

Investors, etc.

Companies
Environmental
information
disclosuresystemIR library

CSR Report
Environmental

Activity Report
In order to facilitate ESG (environment, society and governance) investEnvironmental
Economyment to our company, we registered IR library, CSR report, environmental
Activities / Society
report and report on corporate governance on the Ministry of theEnvironment s Environmental Information Disclosure Infrastructure Development Project
We started dialogues with investors etc. through ESG Dialogue Platform .

Corporate
Governance
ReportGovernance

CSR Rating of TODA KOGYO Group by a third party rating organization, EcoVadis SAS

In the Group, CSR, Environment Group of the Corporate Planning Department, CSR
Committee and Environment Committee primarily promote CSR activities.
Our CSR activities are rated by a third party rating organization, EcoVadis SAS. The
EcoVadis Rating covers four themes; Environment, Labour & Human Rights, Ethics andSustainable Procurement. The ratings on twenty one issues that belong to the four
themes, respectively, are done in accordance with international CSR standards such as
the principles of the United Nations Global Compact, the agreements of the International Labour Organization (ILO), the Global Reporting Initiative (GRI) standards, ISO 26000 and Coalition for Environmentally
Responsible Economies (CERES) principles. Our CSR activities in 2021 were awarded the BRONZE Medal.

TODA KOGYO CSR Report 2021 25

Environment and Safety
Green Procurement

Sustainable Procurement
PolicyTODA KOGYO Group shares global values with respect to human rights, labour, environment, andanti-corruption stipulated by the United Nations Global Compact and follows Procurement Policy, Guidelines, and Basic Policy concerning Conﬂict Minerals (disclosed on our website). We also improve ourbusiness competitiveness and corporate value by enhancing sustainability with business partners, andaim to contribute to society.

[Guidelines]
1. Compliance with laws and regulations: In all activities related to procurement we comply with laws and regulations and conduct fair transactions.
2. CSR: In addition to recognizing the responsibility as better citizens and doing our CSR activities, we collaborate
with business partners who share similar ambitions and fulﬁll our social contribution.
3. Green procurement: We conduct purchase transactions, in accordance with the procurement policies that consider resource conservation and environmental conservation.
4. Fair and impartial transactions: We widely open the trading market and conduct purchase transactions, basedon impartial and fair standards both domestically and abroad.
5. Selection of business partners: We comprehensively evaluate quality, price, delivery time, etc. presented by business partners. Considering the promotion of cost reduction activities, the possibility of providing new materials
and new technologies, etc., we make selection based on economic rationality.
6. Regarding purchase transactions, we always focus on solidity and do not conduct speculative transactions.
7. We strictly manage documents and information provided in purchase transactions.

CSR Procurement

According to our internal purchasing regulations, it is obligated to implement business partner surveys.
We ask our major business partners to respond to our CSR self-check sheet (in Japanese, English andChinese) regarding various aspects such as quality assurance, supply capability, BCP/BCM, environmental conservation, human rights, compliance with laws and regulations, and social contribution and weissue feedback sheets for them. We ask our major business partners to implement this every year to
implement improvements in CSR through the application of the PDCA cycle.
We promote sustainable procurement in cooperation with everyone in the supply chain.

Operational results of the CSR
self-check sheet in ﬁscal 2020

Number of issues

79

The Group has established the internal Security Export Control Regulations, and declares not only tocomply with laws and regulations but also to contribute to maintain international peace and security.
In order to prevent weapons and military-transferable cargo / technology from going to countries or terrorists that threaten the security of the international community, the Group conducts export controls ingood faith based on Foreign Exchange and Foreign Trade Act and other applicable international and foreign laws and regulations when exporting and providing our products, our technical information, etc.

Inquiries concerning security export control

For inquiries concerning security export control of our products or related technology, please contact
our technical / sales representative who is convenient.

Executive Export Control Oﬃcer

Customers

Report of the eﬀorts

Export Control Oﬃcer

Results of the CSR self-check answered by the suppliers(Target achievement rate against requirements)
91.7％

Initiatives for product quality

Number of answers

75

Considerations for environment

Response rate

95％

Respect for human rights

86.9％
95.7％
94.0％

Safety and health

93.2％

Sound business management
Business continuity plans
Total evaluation

26 TODA KOGYO CSR Report 2021

Security Export Control

SurveyTODA KOGYOGroup(2) Responses using the CSR self-check sheet

Reference environmental labels etc.

[System of Security Export Control](1) Distribution of the CSR self-check sheet(3) Issuance of a feedback sheet

Business partners

Designated procurement items under Act on Promotion of Procurement of Eco-Friendly Goods and Services by the State and Other Entities (also known as the Green Purchasing Act) started from 101 items in
14 ﬁelds in ﬁscal 2001 and increased to 275 items in 21 ﬁelds in ﬁscal 2018 (Cabinet decision in February2018). With referring to the Public Procurement Guidelines for Green Purchasing (February 2018) published by Japanese Ministry of the Environment, and by means of taking into account chemical substancemanagement, energy saving, resource saving, recycling, packaging materials, ease of regeneration / disassembly / treatment, impact on ecosystem, etc., we procure products and services which are considered toreduce the environmental load.
【Covered items】
paper, stationery, home appliances, oﬃce equipment, water heaters, lighting, working clothes, air conditioners and ﬁre extinguishers

Person in charge of
Onoda Plant

Person in charge of
Otake Plant

Person in charge of
Research &Development
Division

Person in charge ofOkayama Plant

Person in charge ofSales Division

Department in charge:
Person in charge of procurement
Person in charge of shipping

Department in charge:
Person in charge of procurement
Person in charge of shipping

Department in charge:
Person in charge of procurement
Person in charge of shipping

Department in charge:
Person in charge of procurement
Person in charge of shipping

Department in charge:
Person in charge of procurement
Person in charge of shipping

85.8％
91.0％

TODA KOGYO CSR Report 2021 27

Environment and Safety
Occupational Safety and Health (Safety and Health Activities)
For the purpose of unifying the activities on occupational safety and health in the entire group, TODA
KOGYO Group promotes the development of a safe and secure workplace environment and humanresources to ensure that employees can continue to work safely and securely.
In order to share and emphasize safety and health initiatives throughout the Group, we have established
the Central Summarizing Safety and Health Committee, which oversees the safety and health organizations
at each business site, and from the Central Summarizing Safety and Health Committee, safety and healthinitiatives are deployed to safety and health committees at each plant.

Data on industrial accident

In ﬁscal 2020, four occupational accidents (one day or more of lost work time) occurred in the entire Group.
Among these accidents, in August 2020, a forklift truck fell over and struck an employee of a subcontracting company at the Onoda Plant, resulting in a serious accident. In order to prevent such an accident from occurring again in the future, we have declared a state of emergency at both Onoda andOtake plants, and thoroughly implemented measures based on the three principles of safety (tidiness andorderliness, inspection and maintenance, and work standards). Although the emergency declaration was
lifted at the end of ﬁscal 2020, we will continue these eﬀorts in ﬁscal 2021 and beyond.
Trend of rate of accident causing lost work time in TODA KOGYO Group
Average value of data of various industries investigated by
Ministry of Health, Labour and Welfare（Rate of accident causing lost work time）

3.0

TODA KOGYO Group

2.5
2.0
1.5
1.0

2012

2013

2014

2015

2016

2017

2018

2019

2020 （FY）*Rate of accident causing lost work time: This means the number of casualties caused by industrial
accidents per 1 million actual working hours, and expresses the frequency of industrial accidents.

Safety Activities

The Onoda and Otake plants hold a Safety Convention every year to raise safety awareness and provide a forum for reviewing and setting goals for the current ﬁscal year by reconﬁrming the occurrence ofaccidents in the previous ﬁscal year.
Furthermore, we set up safety and health education for young employees, understanding and studying
measures for heavy-duty work, and measures against heat stroke as our priority activities for ﬁscal 2020.

Scene from a Safety Convention in Onoda Plant

28 TODA KOGYO CSR Report 2021

Assessment of and countermeasures for heavy manual work

At each production site of the Onoda, Otake, and Okayama plants, heavy manual work was assessed andpriority workplaces were selected. The secretariat of the Central Summarizing Safety and Health Committee and the safety and health managers and staﬀ at each site provide direct on-site support to these priority
workplaces, so that improvement plans can be made and implemented from a variety of perspectives andpositions.

Heat stroke countermeasures

Every year, the Group supports the Combat Heatstroke at Work Campaign of the Ministry of Health,
Labor and Welfare, and promotes its activities. In ﬁscal 2020, we clariﬁed and disseminated the rule ofwearing masks and heat stroke as an action to prevent heat stroke under the new normal. We were able toprevent the occurrence of occupational accidents due to heat stroke in ﬁscal 2020 through these activities.

Holding of various types of courses and seminars

In addition to the priority activities of the entire
Group, the Group implements courses focusing onpriority themes set for each work site from time totime; such as a course on danger prevention training, a course on noise pollution prevention training, special training for low-voltage electricity
handling operations, a course on the GHS
First-aid training
Course on heat stroke(Globally Harmonized System) and preparation
methods of labeling & SDS (Safety Data Sheet), and ﬁrst-aid training. Through these activities, the Group
strives to disseminate the correct recognition on safety and health for the Group employees.

Emergency response drills

0.5
0.0

Safety and health education for young workers → Every year for the ﬁrst three years of
employment (together with safety education for new employees, a total of four times in three years)
Concentrated safety and health education for young workers started in ﬁscal 2020. By providing unskilled workers with practical training in risk assessment in actual processes, we provided an opportunity for them to learn how to improve their individual risk sensitivity and the necessity of information
sharing (reporting, communication, and consultation).

Scene from a Safety Convention in Otake Plant

Because we handle inﬂammables such as heavy oil, kerosene, LPG and hydrogen gas in large quantities at
each worksite, we recognize that there are risks of ﬁre, explosion and pollution due to outﬂow of chemical
substances.
In order to prevent the development of these potential risks, we carry out daily and periodic inspections andimprove our safety system. Emergency
response drills are held every year atworksites for facilities that could have asigniﬁcant environmental impact in theevent of a disaster. Conducting drills forevacuation, rescue, ﬁreﬁghting, etc.,
assuming personnel damage, ﬁre occurrence, and damage to buildings andFire drill
equipment due to an earthquake, etc., we Comprehensive ﬁre and disaster prevention drill
make eﬀorts to be able to respond more
properly. In ﬁscal 2020, for the ﬁrst time,
we conducted a desktop exercises(comprehensive ﬁre and disaster prevention drill) at the Otake Plant, in which we
simulated the response from the occurrence of an earthquake to the securing of
human safety, gathering information,
Emergency (chemical substance leak) response drill
making decisions, and communicating
instructions.
TODA KOGYO CSR Report 2021 29

Society
TODA KOGYO Group engages in various forms of community exchange and contribution activities. In
ﬁscal 2020, due to the eﬀects of the coronavirus, although we were unable to conduct our annual environmental beautiﬁcation activities, we will continue to deepen our relationship with the local community
through various activities.

Community exchange
Outreach Science Lessons

Since ﬁscal 2008, TODA KOGYO has implemented outreach science lessons and events for elementaryand middle school pupils in Hiroshima and Yamaguchi prefectures. In ﬁscal 2020, we were able to conduct the classes at ﬁve elementary schools and two junior high schools under coronavirus countermeasure at the schools. In the elementary schools, the theme of study was permanent magnets and electromagnets, and the children were able to experience the function of permanent magnets and electromagnets by experimenting with various types of permanent magnets and making hand-made motors using a
combination of permanent magnets and electromagnets, and also learn that products using magnets areuseful in their daily lives. As a result of these activities, we hope that more children will be interested inscience and will become the bearers of science and technology in Japan in the future.

The 4th Meeting of Elementary, Junior High and High School Students with
Leading Researchers

On March 27, 2021, while taking measures against the coronavirus, the Ohsumi Frontier Science Foundation held the 4th Meeting of Elementary, Junior High and High School Students with Leading Researchers* at the Hiroshima Children s Museum, and we participated as a sponsor. The event featured special
lectures by Dr. Yoshinori Ohsumi, winner of the Nobel Prize in Physiology or Medicine, and Dr. Mitsuo
Ochi, President of Hiroshima University, as well as 14 hands-on science booths, one of which was on thetheme of making a simple homemade motor. At our booth, about 90 children and their parents were able
to experience the fun of science through motor making.

Handmade motor

Lecture by Dr. Yoshinori Ohsumi(Courtesy of the Ohsumi Frontier
Science Foundation)(A coil is placed on topof a paper cup ﬁlledwith magnets and dry
cell batteries. It is
possible to observe
how the motor rotates.)

Activities at the booth

The Ohsumi Frontier Science Foundation was established by Professor Yoshinori Ohsumi of the Tokyo Institute ofTechnology, winner of the 2016 Nobel Prize in Physiology or Medicine, to provide elementary, junior high and highschool students with the opportunity to experience cutting-edge science and interact directly with researchers who
are actually conducting the research. This event is held in the hope that as many people as possible will develop
an interest in natural science and want to become researchers in the future, and although the fourth event was
originally scheduled for March 2020, it was postponed for one year due to the spread of the coronavirus.

Career education for junior high school students

On December 2, 2020, we gave a lecture on occupations to the third grade students of Sotoku JuniorHigh School. In order to foster a sense of career and work ethic in the students, we introduced them tothe diﬀerent types of jobs in the manufacturing industry, the appeal and satisfaction of work, and themindset of a business person.
We will continue to be actively involved in career education for young people so that more people canbe involved in manufacturing companies.

Comments from students who listened to the lecture(from a questionnaire provided by Soutoku Junior High School)(Scenes from outreach science lessons, courtesy of the Japan Institute of Invention and Innovation Hiroshima Branch
and Akasaki Elementary School in Sanyo-Onoda City)

Number of outreach lessons
15

Number of schools

Number of lessons

1050FY200830 TODA KOGYO CSR Report 2021

FY2010FY2012FY2014FY2016FY2018FY2020• I was surprised to hear that there are many hardships involved
in developing a new product, and it normally takes ﬁve years at
the earliest and ten years to commercialize a new product andthat it is much harder than expected.
• When I heard that only about one out of every ten research anddevelopment themes becomes a new product, and that othercompanies will soon enter the market and compete with eachother, I realized that life is not so easy.
• I thought it was great that they were thinking about the futurewhen they worked, even though I could only concentrate on theimmediate future.
• By listening to what is important in the future, it became easierfor me to set goals and understand what I should do.
• I was impressed when they were talking about how it s okay tomake mistakes, but not to repeat the same mistakes afterwards.
• When I heard that good products can be made by repeating
failures many times, I thought that manufacturing would be fun.

Scene of the lecture (courtesy of Sotoku Junior High School)

TODA KOGYO CSR Report 2021 31

SocietySponsorship Activities

Respect for human rights

Green Greetings Project

Regarding the originality and the diversity of each employee as property, the Group supports unlimited
leap and activity of its capabilities, and evaluate fairly. We also endeavor to enhance employee s comfort
and aﬄuence and aim to live together.

TODA KOGYO Group is supporting the Green Greetings Project, which aims to let as many people as possible know about
the existence of trees that were exposed to the atomic bomb in
1945, and to preserve them for future generations.
As part of the project activities, our employees and their families
participated in a tour of A-bombed trees held in November 2020.
The participants toured the A-bombed trees around Hiroshima
Station with arborist Dr. Chikara Horiguchi providing explanations, and were reminded of the vitality of A-bombed trees thatsurvived the atomic bombing and the preciousness of peace.

Tour of A-bombed trees (with Dr. Horiguchi, an arborist)

Basic policy

The Group seeks always to respect fundamental human rights which are premises of mutual understanding. The Group also does not discriminate on the basis of race, creed, gender, social status, citizenship, sickness, handicaps and any other unjustiﬁable reasons.

Concrete code of conduct

Green Greetings Project 2021 poster

Kids Safety Map of Otake City

Kids Safety Map of
Otake City

The Kids Safety Map of Otake City, which is produced by Zenrin Co., Ltd. for the purpose of crime
prevention, disaster prevention, and traﬃc safety forchildren in the community, was updated. Our company, which has a business oﬃce in Otake City,
sponsored the event in the hope that it would help
children feel safe and secure.
This map, which includes evacuation sites in caseof disasters and dangerous traﬃc areas, is distributed
to elementary and junior high schools in Otake City.

Enhancement of Company Internal Rules

We have established internal rules such as Harassment prevention regulations, Regulations concerning
protection of personal information, Regulations for childcare and nursing care leave, Regulations concerning leave due to personal illness and return to work, Stress check system implementation regulations, Compliance promotion regulations, Compliance consultation system in order to strive to respect human rights
throughout our Group.

Consultation System
Map (around Kuba Station)

By setting up a consultation counter for harassment consultation / complaints in the Personal &General Aﬀairs Department and an external law ﬁrm, we take appropriate measures in accordance with our internal harassment prevention regulations.

Eﬀorts concerning Respect for Human Rights

Flower planters for the four seasons in Hiroshima City

The city of Hiroshima, which aims to be a beautiful city full of ﬂowers, greenery and music, is planting seasonal ﬂowers in planters todecorate the city. We also support these eﬀorts, and a sponsorshipplate was placed on a planter on the Hiroshima Ekimae-ohashi
Bridge near our head oﬃce.

Hiroshima Ekimae-ohashi Bridge

32 TODA KOGYO CSR Report 2021

(1) Elimination of all discrimination
Executives and employees must respect the fundamental human rights of individuals and must notengage in any actions that ignore human rights such as discriminatory language, violence, sexual harassment, and power harassment.
(2) Protection of personal privacy
When contacting personal information inside and outside the company for business activities, executives and employees must pay close attention in their handling of this information in order that thepersonal privacy will not be infringed, and must exercise the proper management control over it.
(3) Elimination of improper labour practices
Executives and employees must eliminate improper labour practices. Moreover, they must not
employ children under the legal working age of the country or region concerned. Executives and employees must also impose the same conditions as conditions within the Group, on its sales outlets andsubcontracting companies.

(1) Activities on recruitment of foreign nationals
We conduct promotion of employment of foreign nationals in our company. Currently, we employ
four foreign nationals as regular employees. Since ﬁscal 2019, we started to participate in activities
organized by Hiroshima Prefecture, to encourage science and engineering students from foreign countries to ﬁnd employment at companies in the prefecture. We are promoting the recruitment of talented
human resources from Asia and other regions.
(2) Training support for overseas subsidiary staﬀ
In order to raise the career of the local manager (foreign nationality) of the overseas subsidiary,
TODA KOGYO has conducted educational support since ﬁscal 2017.
(3) Education for expatriates
For Japanese employees assigned to overseas subsidiaries, we conduct various training (basics ofcross-cultural business etc.) for smooth company management.

TODA KOGYO CSR Report 2021 33

Society
Training (Education) Systems
New Recruit Training

Among various education systems, TODA
KOGYO especially puts eﬀort into the training
for new recruits.
All recruits (technical and clerical recruits)
work on the same training program together.
Introductory training (April)

Corporate Planning Department, Accounting & Information System Department, Information System GroupOn-the-Job Training (OJT)

Enhancement of OJT system for new recruits(Training plans for trainee, and implementationsof training for OJT trainers), implementations ofsafety and health / quality control educations,dispatches to domestic universities / research
institutes, etc.

The training is intended to switch the trainees
from students to members of society in terms ofrhythm of life and mind, and it is also intended tolearn the basics as oﬃce workers.
● Training at Zen-temple (Switching from students to members ofsociety in terms of mind and rhythm of life which is to be done
together with new recruits of other companies)● Business training (Starting with manners training, the recruits
master the basics of oﬃce workers with good spirit and technique.)● In-company training (Lecture on company organization andproducts, learning about the company system and rules, plant
tours, etc.)

The training is intended to understand the company culture and the workplace atmosphere byon-the-job experiences for a long period, and it isalso intended to contact directly with senior employees etc.
After learning the basics of Monozukuri, R&D andmarketing activities in production departments,
research & development departments and sales
departments, the recruits acquire professional
knowledge on the job.

Decision of oﬃcial assignments (September)

Assignments are decided in consideration ofeach recruit s wishes, aptitude and needs in thecompany. After that, the recruits gain a variety ofexperiences according to in-company job rotation.

New recruit training: Training at Zen-temple

Oﬀ-the-Job Training

Stratiﬁed training, priority issue training, jobclassiﬁed training, mental health training, training for overseas assigned personnel, etc.

Self-development

Providing support to the correspondence selfeducation system (Individuals can optionallyselect courses. If they graduate with outstanding results, they are exempted from paying
tuition fees.)

Interview with employees
We interviewed young employees, mid-career employees, and employees posted overseas about their
daily work and the atmosphere of the workplace.
CS Promotion Group, CS Promotion Department, Sales Division (Otake)Eri AgawaI have been working in the CS Promotion Department of the Sales Division for
more than three years now, and I am in charge of receiving orders from customers and delivery operations related to imports and exports.
As the person in charge, I have many opportunities to communicate directlywith customers and coordinate with sales, manufacturing, and other internal
departments. I always keep in mind that I need to communicate well on a regular basis in order to carry out my work smoothly. In addition, I learned basic
delivery operations in Tokyo for two years after joining the company, and waslater transferred to Otake, our manufacturing base, where I was able to work
more closely with the people in charge of manufacturing, quality assurance, andshipping, enabling me to make internal adjustments more smoothly.
Because there are times when I receive urgent calls from customers, I will continue to consult with the people
around me and work on my daily work so that I can acquire the ability to respond quickly and grasp the situation.

34 TODA KOGYO CSR Report 2021

I joined the company as a mid-career employee, and this year marks my fourthyear. In my previous job, I was involved in system development at an IT company. Since joining our company, I have been involved in the operation andimplementation of various information systems within the company, and I am
handling a wider range of projects than before. There are some projects that I
don t have much experience in, but because my co-workers are friendly andhelpful, we are able to proceed with them in cooperation with our vendors.
There is a lot of work to be done, but our company oﬀers a good work-life balance and I am able to work positively.
The use of information systems and tools in business has become commonplace, and if we use those that lead to greater eﬃciency, it is possible to reduce costs and make more eﬀective useof our labour. In our company, we have not yet been able to achieve suﬃcient eﬃciency, so I hope that we can
improve each employee s interest in IT and literacy more than ever before. By improving their understanding of IT, I
would like to be able to derive and use better ways of improvement.

Toda Kogyo Europe GmbH

Workplace training (4 months from May to August)

Naoki Nishi

Tomonori Takamatsu▶ Please tell us about Toda Kogyo Europe GmbH (TKE).
TKE has an oﬃce in Duesseldorf, Germany, with a total of four employees:
three Japanese female employees and myself. Although TKE has been an oﬃce
with only Japanese people for the past three years, the female employees havebeen in Germany longer than I have, and they are very reliable in providing
information and helping us with problems in our daily lives as well as at work. In
terms of the business we are engaged in there, we sell the TODA KOGYO
Group s products throughout the European market. We started in 1994 as TODA
KOGYO s ﬁrst overseas oﬃce and have been in business for 28 years. At the timeof its establishment, the company s main business was the sale of magnetic
recording materials for video and audio tapes. Currently, our main business is thesale of magnetic materials for various sensors and motors for the automobilerelated market in Germany and the EU.

▶ I understand that Europe was also greatly impacted by coronavirus. What changes have you seen in your workand life as a result?
The rules for coming to work have been drastically changed. From July 2020, employees have been required tocome to work once a week in principle, and shifts have been arranged so that employees do not have to work at thesame time as each other. We have also created a manual for initial response procedures in case of an infected
person. In Germany, regulations change frequently, so I always try to share local information with TKE members sothat we can always have the latest information. Although information from the news is important, information that
we get from the local network is much fresher, so information from the local community that members tell us about
is very useful for us.
Germany has had several lockdowns, and the lockdown that lasted from December 2020 to March 2021 coincidedwith the Christmas season, making for a long, dark winter. At one point, restaurants and clothing stores were closed,
and only the bare necessities such as supermarkets and drugstores were open. However, ﬂower stores were open,
which I thought was typical of Germany s love for ﬂowers.
▶ Has the way you interact with your customers changed?
Before the coronavirus, we used to participate in exhibitions throughout Europe and actively meet with potential
customers, but under the coronavirus, we mainly meet with customers via the Internet. While each company holds
web seminars on their products and businesses, because we cannot talk to each customer individually at the seminars, it is diﬃcult to lead to interviews. Accordingly, we are constantly looking for ways to eﬀectively promote our
products online as well. We used to have dinner with Japanese people we met at exhibitions afterwards, and I mlooking forward to the day when we can do that again without worrying about each other.
▶ What would you like to do after the coronavirus situation is under control?
I would like to reevaluate the systems that were temporarily changed under coronavirus, and continue to adopt theones that were good after the situation is under control. Some of our employees still have small children, so I think it
is good that the coronavirus pandemic has increased family time. I hope that they will cherish the time they havewith their families.
In order to respect the ease of work for our employees, we would like to continue to restructure our systems andreview our business processes in order to improve the eﬃciency of our operations. Also, as regulations are being
eased, we would like to expand our relationships with Japanese people from other companies and local residents
living in the area. There is also a Japanese association in Duesseldorf, and although the postponement of events dueto the coronavirus pandemic has been unavoidable, we hope to resume the events and build new relationships.

TODA KOGYO CSR Report 2021 35

Society
Support for the development of the next generation /activities on promotion of women s participation and advancement
Based on the provisions of the Act on Advancement of Measures to Support Raising Next-Generation
Children and the Act on Promotion of Women s Participation and Advancement in the Workplace, TODA
KOGYO has formulated the following action plans concerning the development of the next generation
training and promotion of women s participation and advancement, and we are promoting activities according to these plans.

Results

All data are as of March 31, 2021 / Results for ﬁscal 2020 (Number of new graduate recruits includes a result for ﬁscal 2021.)(1) Recruitment

1

2

Goal

Measures to achieve the goal

Result for ﬁscal 2020

Raise awareness of childcare in
the workplace, and increase thenumber of employees taking
childcare leave during the plan
period as follows.
Male employees: At least one of
the eligible employees will takechildcare leave
Female employees: Maintain
100% of eligible employees
taking childcare leave and 100%of employees returning to work

• Create an environment in which
it is easy to take childcare leave.
• Regularly inform employees
about various systems related tochildbirth and childcare via theintranet.
• Prepare internal documents onchildbirth and childcare, and distribute them to both male andfemale employees.

Maintain a 100% rate of female
employees taking childcare leave
and a 100% return-to-work rate.
(Same target for the period April
1, 2016 to March 31, 2021)

Create an environment fordiverse and ﬂexible work styles(promote telecommuting, telework, and other locationindependent work styles).

• Establish a system for telecommuting and telework, and create
an environment for their smooth
operation.

Encourage children to experience the fun of science and chemistry.

3

Male
83.9％

5

Measures to achieve the goal

(1) Actively publicize the fact that the company is a workplace where women can play an active roleby disclosing information such as the percentage of employees taking childcare leave in recruitment
media and introducing female employees who are actively involved in the company.
• Develop workplaces where women can advance, and improve the necessary environment.
• Provide career education for female employees.
(2) Promote a no overtime day to raise awareness of the importance of not working overtime.

36 TODA KOGYO CSR Report 2021

2

7
FY201963

4

5

FY2020■New graduates (female)

FY2021■Mid-career (male)■ Mid-career (female)(2) Continued employment and work style reforms
Male

FemaleAverage

Average number of years of continuous service

23.0

11.8

21.3

Average age

49.3

38.5

47.7

Monthly average of extra working hours
10.5(Days)
18

9.34

16

7.2

8

14
12
10

6

8

4

4

2
0

Average acquisition rate (%) of annual paid leave andnumber of acquired days of annual paid leave
13.9（72.3％）
8.7
12.7（44.9％）（65.7％）

6
2

FY2018FY20190

FY2020FY2018FY2019FY2020*As a special factor in ﬁscal 2020, the rate of annual paid leave usage islower than usual due to the implementation of temporary layoﬀs.

Action plans for promotion of women s participation and advancement (5 years
from April 1, 2021 to March 31, 2026)(1) To address the issue of the low ratio of female employees in terms of the number of employees, thenumber of people hired, and the number of people in management positions, we will aim toincrease the ratio of female employees to new graduate recruits to 30% or more (cumulative total)
during the plan period.
(2) Maintain overtime hours for all employees within an average of 10 hours per month.

2
4■New graduates (male)

12

Goal

5

0

(hrs)

• Number of exhibits at scienceand chemistry events: 1• Number of schools conducting
outreach science lessons: 7
schools (11 times)(Same target for the period April
1, 2016 to March 31, 2021)

1
15

10

10

• Promote understanding of
science and chemistry throughparticipation in events forelementary, junior high, and highschool students.
• Cooperate in school education(outreach lessons, etc.) for
elementary school students.

20

Female16.1％

Action plans for supporting the development of the next generation (5 years from
April 1, 2021 to March 31, 2026)

Number of new graduate
recruits in the past 3 years(Number of people)

Proportion of female in employees

MaleFemaleNumber of people eligible for childcare leave

2

3

Number of acquirers

03

Acquisition rate (%)

0％

100％

*Acquisition rate of female maintains 100% over the past ten years.

(3) Evaluation and promotion
FY2018FY2019FY2020Percentage of female workers in assistant manager positions

10.8％

11.8％

11.8％

Percentage of female workers in management positions

2.4％

2.7％

2.7％

Percentage of female in executive positions

0％

0％

0％

TODA KOGYO CSR Report 2021 37

Company DataOﬃces and Aﬃliate Companies●

Name of company：TODA KOGYO CORP.

●

Head oﬃce：1-23 Kyobashi-cho, Minami-ku, Hiroshima, 732-0828 Japan●Founded：1823●

Incorporated：November 30, 1933●

Capital：7,477 million yen●

Number of employees：348 (stand-alone), 1,208 (consolidated)

Japan・Central Battery Materials Co., Ltd.
◆Creative R&D Center◆Otake Plant
・Toda Fine Tech Inc.

*As of March 31, 2021
BTBM, Kitakyushu Plant(Kitakyushu, Fukuoka)

Organization Chart

・Tokyo Shikizai Industry Co., Ltd.
Iwaki Plant

◆Head
Oﬃce

◆Onoda Plant
・BTBM, Onoda Plant

General Meeting of Shareholders◆Okayama Plant

Board of Corporate Auditors

Core Business Division

Onoda Plant
BTBM Headquartes, Onoda Plant(Sanyo-Onoda, Yamaguchi)

Tokyo Shikizai Industry Co., Ltd.
Head Oﬃce and Plant(Itabashi-ku, Tokyo)

・BTBM
Kitakyushu Plant◆Tokyo Sales Oﬃce
・Tokyo Shikizai Industry Co., Ltd.
Head Oﬃce and Plant
・BTBM Head Oﬃce

Tokyo Oﬃce
(Minato-ku, Tokyo)

Future Business Division

Board of Directors
President
Management Conference
Internal Audit Department

Nomination & Remuneration Advisory Committee

Production Division
Creative R&D Center(Otake, Hiroshima)

Onoda Plant
Otake Plant
Okayama Plant

Production Technology Division

Risk Management Committee

Research & Development Division
Sales DivisionCorporate Administration Division
Business Support Promotion Oﬃce

Head Oﬃce(Minami-ku, Hiroshima)

Okayama Plant(Kita-ku, Okayama)*BTBM = BASF TODA Battery Materials LLC.

Overseas
China

Compliance Committee

Otake Plant(Otake, Hiroshima)

CanadaGermany

Korea

a

i
2001

2007

TODA (CHINA) Co., Ltd.
Procurement andtrading businessToda Advanced
Materials Inc.

Manufacture and sales of electronic materials

1994

Toda Kogyo Europe GmbH
Purchase and sales of Group products

h

2008

TODA ISU CORPORATION

Manufacture and sales of electronic materials

2006
TODA Ferrite KOREA
Co., Ltd.

Manufacture and sales of electronic materials

Taiwan

b

g
2011

d
e

Toda United Industrial(Zhejiang) Co., Ltd.

Manufacture and sales of functional pigments

f

c

i h

g

b

a

2013

MECHEMA TODA CORPORATION

Manufacture and sales of raw materials for electronic materials

Thailandbf

Corporate Planning Department

2016

2003

Quality Assurance Department
Procurement & Logistics Department
Intellectual Property Group

Zhejiang Huayuan Pigment
Co., Ltd.

Manufacture and sales of functional pigmentscElectronic materials = Ferrite materials and battery materials

2007

Toda Magnequench Magnetic
Material (Tianjin) Co., Ltd.

e

d

d

Manufacture and sales of electronic materials

38 TODA KOGYO CSR Report 2021

Functional pigments = Various coloring materials and magnetic powder materials

2004

Zhejiang Toda DMEGC Magnetic Co., Ltd.

Manufacture and sales of electronic materials

2003

Toda Plastic Magnet
Material (Zhejiang) Corp.

Manufacture and sales of electronic materials

Toda Kogyo Asia
(Thailand) Co., Ltd.

Manufacture and sales of electronic materials

e

2012

TODA MAGNET (SHENZHEN) CO., Ltd.
Manufacture and sales of electronic materials

2021

Jiangmen & Partner's Magnetic
Product Co., Ltd

Manufacture and sales of electronic components

TODA KOGYO CSR Report 2021 39

TODA KOGYO Group supports local sports and culture!
HIROSHIMA SYMPHONY ORCHESTRA©1992 S.FC

TODA KOGYO CORP.
Contact information for inquiries relayed to this Report:
Corporate Planning Department CSR, Environmental Group
Otake Plant: 1-4 Meijishingai, Otake, Hiroshima 739-0652, Japan
TEL：+81-827-57-6129
Published in December 2021