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Sustainability Report
SummaryTHE

ENVIRONMENTLABOR PRACTICESING PR
RAT
A
PE

S
ICE
CT

FAIR
O

CONSUMER ISSUES

2017

We at Calsonic Kansei Group have been supporting
the motorization of Japan and the world since its very beginning

Sustainability Report 2017
Summary01

Major Achievements in Fiscal 2016

02-03

History / Major Key Data

04-05

Turning Change into Opportunity
Top Commitment

06

Public-Private Cooperation Creating Innovations to
Propel Saitama Prefecture Forward
Stakeholder Engagement

Kiyoshi Ueda, Governor of Saitama Prefecture and Hiroshi Moriya, President and CEO, Calsonic Kansei Corporation

07-17

2016 in Review: Our Initiatives Across the Globe

08-09

Innovations and Management to Support Environmentally-Conscious Business Management on a Global Scale

10-11

China Region: Toward the Improvement of the Labor Environment and Protection of the Global Environment

12-13

Europe Region: Further Respect for Basic Human Rights Prompted by the Modern Slavery Act

14-15

Americas Region: Taking Pride in our Efforts to Contribute to the Community and Help Our Employees Live Better Lives

16-17

Asia Region: Contributing to Local Communities through the Promotion of Diversity and Environmental Initiatives

18-29

2016 in Review: Highlights

20

Organizational Governance: Establishing the Foundations for Responsible Business Management

21

Human Rights: Fostering a Corporate Culture of Respect for Human Rights

22-23

Labor Practices: Creating an Organization that Values Individuality and Diversity

24-25

The Environment: Approaches to the Environment

26
27
28-29

Fair Operating Practices: Adhering to Standards of Ethical Conduct
Consumer Issues: Providing Safe, Quality Products
Community Involvement and Development: Contributions to Local Communities

30

Third-Party Opinion / Response to Third-Party Opinion

31

Global Network

32

Company Overview / Editorial Policy

Calsonic Kansei was ranked 9th (the highest place among Japanese companies) in the 2016 Channel
NewsAsia Sustainability Ranking, a list of the 100 leading companies in corporate sustainability in Asia
released by Channel NewsAsia,a Singapore-based new channel

2016

ACHIEVEMENTS
Major Achievements in Fiscal 2016

Green Procurement

Number of eco-friendly
products created

Percentage of Women in
Management Positions ★

(Percentage of agreements secured
when establishing new supplier accounts)
Fiscal 2016 target: 100%

Target for Fiscal 2011–2016: 10 products

TargetAchieved
Fiscal 2015

100

Fiscal 2016%up
Fiscal 2015

100

%

0.4%

Fiscal 2016

1.9%

TargetAchieved
Fiscal 2015

2.3

9

%

Fiscal 2016

products

10Rate of Code of Conduct Education
and Pledges

Rate of Paid Leave Taken ★

Percentage Reduction of
CO2 Emissions ★★

Fiscal 2016 target: 100%

Fiscal 2016 target: 16 days*

Fiscal 2016 target: Japan: 18.5% reduction;
Overseas: 13.6% reduction

products[Compared to Fiscal 2015]

44

TargetAchieved
Fiscal 2015

100

Fiscal 2016%

100

Fiscal 2015%

TargetAchieved

up % 増%Fiscal 2016

73

%

77

Fiscal 2015

Fiscal 2016

Japan

Japan

Overseas

Overseas29.6 % reduction%

27.6 % reduction

32.3 % reduction
26.7 % reduction[Emissions intensity: Volume emissions / sales revenue]

Customer Satisfaction
Fiscal 2016 target: 3.38 [of a possible 5 points]

Calsonic Kansei Group KPIs (Key Performance Indicators)
In Fiscal 2015, the Calsonic Kansei Group identified a number of global
Fiscal 2015

Fiscal 2016

3.35

3.36

social issues and evaluated them according to their impact on the company,
impact on stakeholders, frequency of occurrence, and degree of risk avoidance response. Based on this, we determined our key issues in line with thecore subjects of ISO26000. Setting KPIs for each of these key issues, weare using the PDCA cycle to pursue initiatives to achieve our targets.

*Because the number of days paid leave granted differs according to years of service (16 days for the first year of service), the fiscal year target has been set as the number of days annual paid leave taken per employee★ = Calsonic Kansei, ★★ = Japan: Calsonic Kansei and group companies in Japan; Overseas: Group companies outside Japan. Unstarred = Global

Sustainability Report 2017

C

K

Calsonic

1938

KanseiCK

Calsonic Kansei

1956

C

K

1960

K

Nihon Radiator Manufacturing Co., Ltd. founded

Kanto Seiki Co., Ltd. founded

Headquarters and plant relocated to Omiya City
(currently Saitama City), Saitama Prefecture

1988

1990

1991

C

Renamed Calsonic Corporation

2017

K

Listed on Tokyo Stock Exchange, First Section

K

Renamed Kansei Corporation

CK

Became a wholly-owned subsidiary of CK Holdings,
established by KKRInnovation
BetterSocietyfor2018

On the Eve of Our 80th Anniversary,
We are Moving Toward the Future, Together with Society
On the eve of the 80th anniversary of its foundation in 2018, Calsonic Kansei is about to face some of the biggest
changes in its long history. These changes represent an opportunity for us to pursue sustainable growth for the next
five, ten, even twenty years02Sustainability Report 2017

1973

1976

C

1984

C

K

Listed on Tokyo Stock Exchange, First Section

Calsonic established its first overseas base,Calsonic Inc., in California, U.S.A.

Kansei established its first overseas base, Kantus
Corporation, in Tennessee, U.S.A.

2000

2005

2008

CK

CK

Capital increased through a third party allocation to
Nissan Motor Co., Ltd., making Calsonic Kansei a
consolidated subsidiary of Nissan Motor

Calsonic Kansei Corporation was formed throughthe merger of Calsonic Corporation and Kansei
Corporation

Consolidated Revenue

CK

R&D Center, Headquarters relocated to Saitama City

Percentage of Consolidated Sales by Region

Fiscalyear[Fiscal 2016]

1,012.596

2016

1,053.318

2015

965.564

2014
0

100

200

300

400

500

600

700

800

900

1,000

Japan

35.2%

Americas

35.6%

Asia

18.4%

Europe

10.8%

Billionyen

Consolidated R&D Expenditures

Number of Employees by Region(Consolidated)Japan

Fiscalyear

Fiscalyear

30.3922016

2016

29.2392015

2015

27.724

2014
0

10

20

2014
30

Billion
yen

0

2,000

4,000

Americas

Europe

Asia

6,756

6,277 2,476

6,915

6,676

6,024 2,398

6,889

6,692

5,426 2,175

6,000

8,000

10,00012,00014,0006,611

16,00018,00020,00022,42421,987

20,90422,000People03
03

Sustainability Report 2017

which we pursued for six years, drew to a close, and it came time to takeup the challenge of a new stage.
The CK GX4 T10 initiatives were pursued along the themes of four G
keywords.
For the first G, “Green,” we successfully achieved our target of creating ten
world-leading eco-friendly products.
For the second G, “Growth,” we declared a target of entering the global
Top 10 automotive suppliers in sales revenue (one trillion yen or more).
We have achieved that target of one trillion yen in sales since 2015.
For the third G, “Global,” we implemented a variety of initiatives to conduct
competitive Monozukuri on a global scale with our unique, leading
technologies.
Our global production structure of 79 sites in 15 countries anddevelopment structure of 14 locations in 8 countries are majorachievements that have come from these endeavors, which I believe havecontributed to the expansion of revenue and income. We have also built
globally standardized production and development processes to make ouroperational processes more efficient.
While our Green, Growth, and Global endeavors have borne fruit, that is
not to say that we have yet achieved our fourth G, to become a “Great
Company.” To grow into a Great Company, we need to raise the value of
our existence further by contributing to society. Declaring 2015 as our“First Year of CSR” we organized our CSR activities into a more
systematic structure, and elevated them to company-wide initiatives. The
outcome of these endeavors has been a major improvement in our
external indicators regarding sustainability.

TOP COMMITMENT

Turning Change into Opportunity
Aiming to be a Great Company that can contributeto solutions to the world’s social issues in asustainable manner through our business
Hiroshi Moriya
President and CEO, Calsonic Kansei Corporation

Our Outlook as an independent Monozukuri company– “Resilient” sustainable management –At the end of March 2017, the Calsonic Kansei Group left the Nissan
Motors Group, and transitioned into an independent Monozukuri company
manufacturing automobile components. Leveraging the abundant industry
knowledge of our new partner, Kohlberg Kravis Roberts (KKR), we willbuild up the new, reborn Calsonic Kansei Group.
In the process, the Calsonic Kansei Group is integrating our financial andnon-financial operations, and we will further evolve our “resilient”
sustainable management.

Pursuit of CSR to grow as a Great Company

The keywords for our new Mid-Term Management Plan, which launches
this year, are “sustainable growth” and “raising corporate value.”04

The Calsonic Kansei Group is a Monozukuri* company that supports the“Sustainable growth” refers to consistent improvement in our financial

motorization of the world.

indicators, that is, continuing to renew our record-high profits that have

In our position as a global supplier, we hope to be an important partner tocontinued since 2013. “Raising corporate value” will involve the pursuit ofcar manufacturers all over the world, and be a company that contributes to

two things. The first is to become a key supplier that is indispensable to

the realization of a sustainable society as we further develop world-leading

our customers, the automotive manufacturers. The second is to continue toeco-friendly products and advance continuous CSR initiatives.

raise the value of our existence in non-financial CSR aspects. We will set

At the end of March 2017, our Mid-Term Management Plan, CK GX4 T10,

milestones that will allow the Calsonic Kansei Group to achieve its goal ofSustainability Report 2017

becoming a Great Company in 2021.

Calsonic Kansei Group as it continues to take on the challenge of creating

The key to achieving this goal will be just how far each and every

new value for society.

employee can act with a “CSR mindset.” This will require not only taking on
board society’s demands, but also fostering a mindset for thinking about

To become a group that can grow and prosper sustainably

how they can contribute to society as individuals.

for 100 years and beyond

Our employees are one of the important stakeholders in our CSR activities.
In addition to their contributions outside the company, we will continue to

The Calsonic Kansei Group will mark the 80th anniversary of its foundation

advance workplaces that have a pleasant and rewarding working

in 2018. For the Group to grow and prosper sustainably for the next 100

environment for our employees.

years and beyond, the pursuit of CSR activities will be imperative.
I hope that our stakeholders will watch over the Calsonic Kansei Group

Responding promptly to the demands of global society

with anticipation of how it will proceed amidst such great changes. Turning

amidst fast-paced change

those major changes into opportunities, we will continue to build up our
initiatives within and outside the company, in the hope of drawing closer,

The pace of change of global society continues to accelerate. The speed

step by step, to our goal of becoming a Great Company.

with which the Paris Agreement, the new international climate change

At the Calsonic Kansei Group, each and every employee will, as one team,framework, has come into force is symbolic of that trend. The Calsonicenjoy the changes ahead and press forward in their daily work with even

Kansei Group, as a member of the automobile industry, which has a deep

more confidence and pride than before.

association with the environment, is actively engaged in finding solutions toenvironmental issues. We will respond sensitively to these kinds of* Monozukuri refers to the creation of value in all respects, through manufacturing fineinternational developments and place even more efforts into our initiatives.

products and providing excellent services in a timely manner to meet customers’

One major achievement of our CSR activities in Fiscal 2016 has been our

expectations.

response to human rights, which has become an issue of increased
interest around the world. The Calsonic Kansei Group established a
Human Rights Policy in April 2016, declaring our intention to respect
international standards and protect basic human rights. As such, we areengaged in the respect of human rights not only of our own employees but
also in our supply chain. In September 2016, we released a statement as
required by the U.K. Modern Slavery Act that came into force in 2015.
We will also engage proactively, through our business operations, inachieving the Sustainable Development Goals (SDGs). We will also
encourage our employees to be involved and contribute to resolving social
issues as a good corporate citizen.

Creation of social value and approaches to diversity
The Tokyo Olympic and Paralympic Games will take place in 2020. One of
the key concepts of these Games is “Unity in Diversity.” As a corporategroup with its global headquarters located in the host country of Japan, we
will be even more proactive in our approaches to diversity.
Specifically, in consideration of diversity, we will thoroughly cultivate ourvalued human resources in a way that will make the most of the individual
characteristics of each and every one of our employees, and we will
strengthen our business management to “grow together” with our
employees. Diverse ideas spring forth from organizations whose members
come from a wide range of backgrounds, including gender, age, birthplace,culture, faith, and beliefs, and it is from those ideas that innovation is born.
In other words, fostering an organization with diversity is essential to the

Sustainable Development Goals (SDGs)

05

Sustainability Report 2017

STAKEHOLDER ENGAGEMENT

Public-Private Cooperation
Creating Innovations to
Propel Saitama Prefecture
Kiyoshi Ueda, Governor of Saitama Prefecture, and Hiroshi Moriya,
President and CEO of Calsonic Kansei Corporation, who have been
pursuing a government-industry partnership, exchanged views about
the significance of their business operations in Saitama and theconcept of government-industry creation of innovation.

Kiyoshi Ueda

Hiroshi Moriya

Governor of
Saitama Prefecture

President and CEO,Calsonic Kansei Corporation

Moriya: After a change in its major shareholder, Calsonic Kansei has embarked

products. Our sites in Saitama have obtained ISO14000 certification and areon a new course as an independent Monozukuri company, a manufacturer ofconducting appropriate environmental management. At corporate headquarters,

automotive components and creator of innovation. Next year, 2018, we will mark

we hold “environmental communication” meetings. Further, as a contribution to

the 80th anniversary of our foundation. It will also be ten years since welocal residents, we have opened up our electric vehicle charging stations to therelocated our headquarters to Saitama Prefecture. Positioning these milestones

general public free of charge and installed groundwater filtering systems. Thisas the company’s “second foundation,” we hope to give fresh thought to what welatter move is so we can provide drinking water to local residents in the event ofshould do for society.

a disaster. Also, as a global company, we are driving diversity through therecruitment of a diverse range of people, to realize a society in which everyone

Governor Ueda: I am delighted that a leading company such as yours is locatedin our prefecture. Saitama Prefecture’s increase in nominal GDP between 2003

can work with vitality.
Tell me what your expectations are of companies in the prefecture.

and 2013 was second only to Aichi Prefecture. This momentum is the result of
the efforts we have placed into attracting companies to the prefecture and into

Governor: I would like to see them hold more site tours. I would also like to see

the support of industry. These companies are contributing to Saitama

you promote your company’s key technologies more.

Prefecture’s economy through the taxes paid by the companies in the prefecture
and the consumer behavior of their employees.

Moriya: In particular, we want to convey the fun of Monozukuri to children, whoYour company does businesses on a global scale, but what is your view of yourwill be responsible for the future. Since 2012, we have conducted a “Supporting

relationship with the local community?

What You Want to Do Project.” This consists of traveling classrooms, in which
our employees visit elementary schools to teach them about Monozukuri. Last

Moriya: We currently have 79 sites in 15 countries around the world, each ofyear, we also held site tours for elementary schoolchildren and their caregivers.

which has close relationships with its local community. Our R&D Center andcorporate headquarters are located in Saitama City, our advanced electronic

Governor: The Prefectural Government is also engaged in initiatives forcomponents plant is in Kodama-cho, Honjo City, and our Production Engineering

cooperation between the private and public sectors to cultivate the humanCenter and interior components plant is in Yoshimi-cho, Hiki-gun. The areas inresources of the next generation. In Fiscal 2017, we established the “Saitama

which we are focusing our efforts in our CSR initiatives are contributions to the

Window to the world scholarship” named scholarship program, a Saitama fundlocal community and the environment. We want to build good relationships withfor Active Global Talent for the active participation of global human resources, tothe local community and government, which are our important stakeholders inassist people who want to study abroad. This program promptly received

Saitama Prefecture, and become a model for our colleagues around the world.

cooperation as the Calsonic Kansei Next Generation Scholarship, for which I
thank you.

Governor: The Prefectural Government has designated 563 sites in theprefecture that excel in technological capabilities and environmental

Moriya: Support for the next generation is a pillar of our social contribution

approaches, including your Kodama and Yoshimi Plants, as Sai no Kuni (Landinitiatives. We also conduct a Saitama Prefecture Overseas Internship Program,of Color and Splendor) Factories. We think it would be a good idea if thesein which university students from the prefecture are offered the opportunity todesignated sites were to form some kind of group that could hold networking

intern at our overseas sites. Our hope is to cultivate people from the prefecture

events and the like. What do you think?

who will contribute to future innovation and Monozukuri. We hope to collaborate
further with the Prefectural Government going forward and to continue theMoriya: We would like to deepen our learning through collaboration with othersteady progress of our social contribution initiatives.

companies.
Governor: I look forward to cooperation between the private and public sectors
Governor: I think there are many ways in which the public and private sectors
can cooperate, creating a win-win situation for both sides. What are CalsonicKansei’s views on solutions to social issues?
Moriya: Firstly, we believe that it is important to create a sustainable society
through our business operations. Calsonic Kansei is a creator of eco-friendly

06

to boost Saitama Prefecture further.

Sustainability Report 20172016

in Review

Our Initiatives
Across the GlobeWorking toward the Realization ofa Sustainable Society on a Global Scale
The Calsonic Kansei Group has 79 sites in 15 countries around the world. Our mission as a
global company is to establish roots in the respective countries and communities and,through initiatives that take advantage of diverse perspectives and values, contribute to thesustainable growth of society. Currently, we are expanding our CSR initiatives, including in
the areas of diversity and the environment, through collaboration between the individualsites and global headquarters, and a CSR mindset is being gradually fostered in each andevery one of our employees.

07
07

Sustainability Report 2017

Innovation and Management to Support Environmentally-Conscious
Business Management on a Global Scale
As a front-runner in our industry, the Calsonic Kansei Group has continued to come up with one eco-friendly
product after another. We also view the environment from a global perspective, and have actively encouraged
our stakeholders, including our employees to think and act in a more environmentally-conscious manner. Someof our key people explain the Group’s progress in these areas, as well as the outlook for solutions toenvironmental issues through our business operations into the future.

to improve overall energy efficiency, we are able

development activities, we succeeded in

to contribute to the realization of a sustainable

creating ten products as planned. Going

society.

forward, as the electrification of cars for the

Our EGR Cooler, a heat exchange product, is areduction of CO2 emissions picks up pace, wegood example of this kind of advance

will need to take a comprehensive view of thedevelopment. With the adoption of VG (Vortex

two forms of energy, heat and electricity, andGenerator)-FIN® technology, which improves

manage them accordingly. We will set up a

the heat-transfer coefficient, we were able tocross-functional team (CFT), spanning the

supply a product that raised the engine’s

departments that deal with these two forms of

combustion efficiency, offering better

energy, to create products with even more

Satoshi Kimura

performance in a smaller, more lightweight form.

appeal.

Senior Manager, Green Technology Development
Group, Global Technology Division
Calsonic Kansei Corporation

We have also participated in the NEDO* project,

Innovations for
Better Energy Efficiency
As a control tower responsible for“Research and Development of Innovative

Creating new value with world-first

Technologies for Using Unused Heat Energy.”

products

We began the development of a system thatused waste heat to operate the air conditioning

Calsonic Kansei is currently in the midst of ain 2013, and have reported on our progress

major transition. For our company to grow as aevery year.

systems supplier, we need to create further

improving the energy efficiency of cars
I am responsible for advance development ofinnovation. We will need to devote even more

Achievement of our target for theefforts to research and development andcreation of eco-friendly products

collaborate with a variety of companies, as wellenergy management products to improveas forming industry-academia collaborations.

vehicle fuel efficiency in the Environmental

Our Mid-Term Management Plan, which ran until

You can look forward to us leveraging ourTechnology Development Group. Advance2016, under the “Green” part of the 4 Gs, we

proprietary technologies for the creation of new

development refers to development that creates

had a target of creating ten world-leadingsocial value and sending world-first products out

something where previously there was nothing.

eco-friendly products, and, through our

into the world.

We develop leading-edge products that answer
questions such as how far we can minimize theenergy used by automobiles, how we canensure comfort with limited energy, and how we
can use renewable energies efficiently.
As a supplier of heat exchange products,
climate-control products, and exhaust products,
the products we supply to our customers, theautomotive manufacturers, are connected withthe release of energy by automobiles. In otherwords, we are a supplier and developer of
products that control a large proportion ofvehicles’ energy. As a control tower that strives

08* New Energy and Industrial Technology Development Organization

Sustainability Report 2017

Tadayoshi Tajima
Manager, Environment & Energy Control Group,
Global Production Division
Calsonic Kansei Corporation

Promoting Environmental
Management on a Global
Scale

are risks, provide advice before something

and human rights. You could say we have

happens, to nip environmental incidents in theentered an era in which companies are assessed

bud at an early stage.

on the degree of their contribution to society.

The second aspect is the job of transitioning toWhile continuing and expanding the initiatives

ISO14001:2015, which was revised inthat Calsonic Kansei has built up to date, I see it

September 2015. Of our 33 global sites, three

as our mission to step up our communications sosites, including Global Headquarters, completed

that all of our employees can become moretransition in Fiscal 2016, and the remaining 28

aware of the need for environmental initiatives.

sites are scheduled to do so by the end of Fiscal

Of course, such environmental activities should2017.

not be confined to Japan. Our corporate

The third aspect is the promotion ofphilosophy is the realization of a sustainable

environmental protection initiatives that use
デザインクオリティ技術
モジュール技術

society, and to achieve that goal, supporting theISO14001 as a management tool. By

Paris Agreement and conducting activities that

communicating information that will encourage

incorporate science-based targets (SBT) for

each and every one of our employees to take anemission reductions that are consistent with theinterest in environmental activities and to be“2°C target” will be an essential global initiative.

aware of their importance, I undertake initiatives
designed to view individual operations from an

Responding to the requirements of theenvironmental perspective.

international community throughEnvironmental Management thatenvironmental communication

Supports Environmentally-Conscious

Stepping up our activities in the hope ofBusiness Management

becoming a company that is given

Because environmental regulations vary from

more credit for its social value

country to country and are becoming stricter

My role is to pursue environmental management

every year, close communication is extremely

on a global scale in the Calsonic Kansei Group,

Conventionally, the indices for evaluating

important. For the Calsonic Kansei Group to

and to contribute to business management thatcompanies were financial figures, but in recent

become a company that will continue to meet theis in harmony with the environment.

years, in addition to financials, the international

requirements of the international community, we

I would like to talk about three aspects of mycommunity has come to place more importancehope to promote environmental communication

work. The first is our global initiatives to preventon how companies are addressing criteria sucheven further.

environmental incidents.

as ESG (environmental, social, and governance)

I check monitoring outcomes and, where there

criteria, Sustainable Development Goals (SDGs),

09

Sustainability Report 2017

[China Region]

Toward the Improvement of the Labor Environment andProtection of the Global Environment
China is a major power that has the world’s second largest GDP* 1, a population ofjust over 1.3 billion* 2, and more than 16 million live births a year* 3. To contributeto the realization of a sustainable society, the Calsonic Kansei Group pursues arange of CSR initiatives at its various sites in China, such as environmental
conservation, improvement of the working environment, and diversity inemployment.

Traffic safety education*1 *2: The China Statistical Yearbook-2016 on the National Bureau of Statistics of China Website

10*3: News release (2016 Statistics Communiqué) of February 28, 2016 on the National Bureau of Statistics of China website

Tree-planting activity

Sustainability Report 2017

Earth Day participants
Calsonic Kansei (Guangzhou) Corporation Dalian Branch

Building for a Safe Working Environment

Creating a beautiful local environment

Aiming for zero accidents through traffic safety education

Employees uniting as one to actively pursue initiatives

Calsonic Kansei (Guangzhou) (CKGH) is conducting a campaign with the

To contribute to the realization of a sustainable society, growing ouraim of an annual accident rate of zero, to raise awareness of traffic safetybusiness together with society is essential. To achieve this, we areamong its employees. In November 2016, the company organized aundertaking a variety of global environmental initiatives, such as thetraining seminar by police officers from the Huadu District Traffic

efficient use of energy, roads and park clean-up drives, and forest

Department. The instructors thoroughly impressed on the participants themaintenance.

following three points: (1) prevention of pedestrian and bicycle accidents

In China, March 12 is designated “Tree-planting Day.” On Tree-planting

while commuting to and from work: (2) correct wearing of seatbelts in both

Day in 2017, managers from the various departments of Calsonic Kansei

front and back seats when traveling in a passenger vehicle, and: (3) the(Guangzhou), including accounts, human resources, finance, general

eradication of drink-driving. After the police officers’ traffic safety lecture,affairs, and production, gathered to plant a total of six trees, such as sweet

the employees enthusiastically participated in other activities, including

osmanthus, moutan peony, and camphor trees, around the plant gate andtalking about their own experiences, which helped to raise their awarenessin front of the cafeteria. These trees have been imbued with the intentionsof traffic safety.

of encouraging employees to “develop a mindset of nurturing nature,” andto “grow together with trees we have planted.”

Thorough implementation of fire prevention measures,

On Earth Day on April 22 every year, Calsonic Kansei (Guangzhou)

including fire drills

Corporation Dalian Branch encourages employees to express theirappreciation for the Earth, for the protection of the beautiful environment.

CKC conducted a fire drill in November 2016. Employees practiced

The theme for Fiscal 2016 was “environmentally friendly commuting toevacuating via the emergency staircases, and confirmed what they should

reduce CO2 emissions.” On that day, employees who usually drive their

do in the event of a fire.

own car to work commuted by bus, bicycle, or on foot.

A safety and fire prevention seminar was also held as part of thecompany’s fire-fighting initiatives. Employees listened to a lecture by an

Expansion of initiatives through stronger global collabora-

instructor, toured the facilities, learned about the history of fire-fighting intion

Shanghai by watching a 3D video, and learned how to use the various
fire-fighting equipment and how to evacuate.

Our sites in China have only just begun engaging in CSR initiatives, but by

Through these kinds of activities, we are endeavoring to make employees

collaborating with Global Headquarters and each other, they will work to

more conscious of fire prevention and to become more capable ofstrengthen their initiatives further.

responding calmly in the event of a fire.

11

Sustainability Report 2017

[Europe Region]

Further Respect for Basic Human Rights Promptedby the Modern Slavery Act
The United Kingdom is one country that is proactively engaged in the human rights area,such as passing the Modern Slavery Act to combat the increasingly serious problem ofmodern slavery around the world. The Calsonic Kansei Group, which has its headquarters
for the Europe region in the U.K., is also striving to respect basic human rights inaccordance with international standards.

12

Sustainability Report 2017questionnaire was circulated to CKEU and GHQ
departments on the basis that our statement
needed to cover our entire supply chain.
The subsequent replies allowed us tounderstand where we already had good
procedures, where we had room for improvement, and where we need to implement newmeasures.
Our activity identified many controls already inplace to ensure that modern slavery practices
do not occur within our own business, including

Karen Myring

employment contracts and our Code of

Section Leader
Corporate Office
Calsonic Kansei Europe plc.

Conduct.
Within our supply chain we could also identify
some good practices with our 2nd tier suppliers,
such as site visits to observe supplier conditions
and contractual obligations included in their
supply contracts.

For the Protection of Human
Rights, Including Our
Supply Chain

Development of human rights policy

A special feature article on the issue appearedthat also encompasses supply chain

in the CKEU Newsletter, and we are conducting
a range of activities to educate people within the

Prompted by this situation, the Calsonic Kansei

company.

Group began development of our own global

What is the UK Modern Slavery Act?

human rights policy, which was formally

To Fulfill Our Global Responsibilities

established on April 1, 2016. The policy
The UK government passed the Modern

declares that the Group’s employees, as well as

Our activity identified that there is still room for

Slavery Act in March 2015. The Act includes aour supply chain, will respect international

improvement, especially in the area of our“Transparency in Supply Chain Provision,”standards and strive to protect basic humansupply chain. Improvement ideas have been

which requires organizations with a business orrights.

developed and have been included in thepart of a business in the UK with a turnover ofIn accordance with the Modern Slavery Act,

statement. Going forward, we will expand our£36m (approx. ¥5.04 billion)*1 or more to

Calsonic Kansei Europe (CKEU), the Group’s

initiatives on a global scale beyond the U.K. topublish an annual Modern Slavery Statement on

U.K. subsidiary, collaborated with Global

prevent forced labor, human trafficking andtheir website, addressing slavery and human

Headquarters (GHQ) and the relevant

illegal child labor. Specifically, we plan totrafficking, that encompasses not only thesubsidiaries to publish an annual statement in

conduct due diligence*4 of our supply chain,organization itself but also its supply chain.

September.

distribute Supplier CSR Guidelines seeking our

A serious problem caused by global-

Identifying existing initiatives andconduct educational programs to promote

izationnecessary actions

understanding within the company.

Modern slavery has become a serious problem

Our first task was to conduct research into theon a global scale, with international humanbest industry practice. We studied a wide range

rights organization, Walk Free Foundation,of materials including government papers, NGO*2: Modern slavery: Defined as a person who is working inestimating that there are some 45.8 million

guidance and benchmark studies into the CSR

conditions that he or she is unable to refuse or escape from, suchpeople*2 in modern slavery*3 throughout theand Sustainability practices of major automotive

world. With the globalization of supply chains,

manufacturers and suppliers.

corporations are being called on to takeUsing the results of our research, we preparedresponsibility not only for what happens in theira detailed questionnaire containing almost 100

own company, but for the entire supply chain

indicators of good/poor internal controls,

associated with their products.

policies, procedures or practices. This

suppliers’ cooperation in CSR endeavors, and*1: Calculated at £1 ≒ ¥140

as human trafficking, forced labor, debt bondage, forced or servile
marriage, forced sexual exploitation, and child exploitation.
*3: Modern Slavery Index 2016, published by international humanrights organization, Walk Free Foundation*4: Due diligence: Identify the negative social, environmental, andeconomic impacts of an organization’s decisions and activities, andavoid or mitigate those impacts.

13

Sustainability Report 2017

[Americas Region]

Taking Pride in our Efforts to Contribute to the Community andHelp Our Employees Live Better Lives
In the Americas Region, we promote programs that will enable our employees tolive better lives both at work and in private, and to participate in community eventswith the pride that they belong to a company with firm roots in the local
community.

Habitat for Humanity event

14

Health and Safety Fair

Sustainability Report 2017

Shawn Ryan

Kim Concialdi

Design Engineering Manager
Technical Resource Management
Calsonic Kansei North America, Inc.

Generalist
Human Resources
Calsonic Kansei North America, Inc.

Building homes,
communities, and hope

Caring for the health andsafety of our employees
at the Health and Safety Fair

Benefiting the local community
An opportunity to learn and think
In Fiscal 2016, Calsonic Kansei North America

about safety

Technical Center (CKNA MI) participated in

Manufacturing Leadership
Development Program Generation II
Calsonic Kansei North America, Inc.

Leadership Training to
Encourage Further Growth
Participants say it helped them see thebigger picture
CKNA began its Manufacturing Leadershipseveral Habitat for Humanity* events to benefit

The Health and Safety Fair has been in

Development Program (MLDP) in Fiscal 2015,

the local community of Metro Detroit.

existence for several years. It is anwith 12 “Generation I” members participating inopportunity to educate employees on thethe inaugural program.

various benefits we have, and allows

The MLDP is a 3-month training program thatdepartments that deal with matters such asprovides all Hourly team members with the

The DE Management team kicked off these

health, legal affairs and retirement issues toopportunity to develop leadership skills that will

events by working together on a future home forinteract with employees directly. There isenable them to promote up into various

a local family. Several of the DE groups did

also a safety aspect in which representa-

positions and across all functions at CK.

smaller scale projects that promoted a sense oftives from the Fire Department, Police

Participants are recommended for the program

team building. The final project was a group of

Department, and water safety organizations

by their team leader, supervisor, or manager.

DE team members from different communities

provide information on car, house andTraining includes a 4-week site management

coming together to support the Rock the Blockpersonal safety.

module, 1-week QSES*1 module, 1-week NPL,

Civic pride and social responsibility

community event. The aim of this event is toPC, In-House Cost, and human resources

revitalize the region and benefit families,

Health and safety advice from outsidemodules. Team members also complete

individuals, and veterans in need.

experts

6-weeks of Job Shadowing*2 with production

CKNA MI has shown a strong sense of civic

supervisors at the various Tennessee locations.

pride and social responsibility through its

In Fiscal 2016, during the month of June, theIn Fiscal 2016, 11 team members graduatedparticipation in these events, and we hope to

CKNA Benefits and Safety teams combinedfrom Generation II of the MLDP program. Eachcontinue to support this cause in the future.

efforts to host the annual Health and Safety

team member shared how this training has

fairs for all locations.

helped them understand their own jobs better

Insurance representatives, local law enforce-and to see the bigger picture of the business.

ment and emergency services, and healthcare* An international non-governmental organization that addresses

providers came onsite to answer team

To help every single member continue

with the vision of “a world where everyone has a safe and decent

members’ questions and to promote awarenessplace to live.”to grow

on healthy lifestyle choices and safety efforts

housing problems in more than 70 countries throughout the world,

outside of work.

CKNA will continue to support our members into

Overall, the events were a success and reached

the future so that they grow not just at work but

over 1,200 team members!

in their private lives as well.

*1: Quality System Evaluation Standard: Calsonic Kansei’s
proprietary quality system evaluation standard*2: Accompanying the supervisor on his or her operations andlearning how to do the job.

15

Sustainability Report 2017

[Asia Region]

Contributing to Local Communities Throughthe Promotion of Diversity and Environmental Initiatives
Thailand is one of our major production sites in the Asia Region. We are benefitting
the local community by creating equal employment opportunities through thepromotion of diversity, and through environmental activities such as recycling andtree-planting.

Tree-planting

Team members donating pull-tabs to the Foundation of People with
Disability International

16

Sustainability Report 2017

Chalavalai Wutthikornkriengkrai

Employees Representative Group

Vice President
Organization Promotion Division
Calsonic Kansei (Thailand) Co., Ltd.

Calsonic Kansei (Thailand) Co., Ltd.

Equal Employment Opportunities byHiring People with Disabilities

All employees united to engage in social
contribution and environmental conservation

Harsh employment situation for people with disabilities*

Recycling to help make prosthetic limbs more affordable

In Thailand, the Disabled Persons Promotion and Development Life Quality

With nearly 2,000 employees, the CKT workplace generates a large volume

Act came into force on September 18, 2007, resulting in the furtherof recyclable waste such as cans every day. This waste is usually sold topromotion of employment of people with disabilities. There are an estimatedrecycling operators as scrap, but we decided that we could put the pull-tab

1.74 million people with disabilities in Thailand, about half of whom have arings to good use to help those in need.

physical disability, followed by the hearing impaired and sight impaired.

These recycled pull-tab rings are used to make prosthetic limbs. Due to theApproximately 250,000 people with disabilities are in the workforce, abouthigh cost of new materials used to make prosthetic limbs, they are hard for

85% of whom work as informal workers or are self-employed in agriculture

the less economically well-off to afford. Our donation of pull-tab rings has

and other areas. In contrast, only 6.3% work for private-sector companies,

made it possible to manufacture prosthetic limbs in Thailand, without theand government agencies hire only about 1.5% of people with disabilities.

need to import them.

Providing equal employment opportunities and an environ-Protecting the environment through tree-planting.

ment for making the most of one’s abilities
In December 2015, CKT President, along with representatives of the CKTCalsonic Kansei Thailand (CKT) embraces diversity, and as part of this,staff, conducted a tree-planting ceremony in honor of the 88th birthday ofactively hires people with disabilities. There are currently 15 people with

His Majesty King Bhumibol Maharaj. This was a joint initiative withdisabilities working at CKT, with equal rights and opportunities to othercompanies in the Amata Nakorn Industrial Estate, where CKT’s plant is

employees. They are assigned to different functions in all of our plants. To

located. 3,000 trees have been planted in the area around the new roadprovide an environment in which they can keep working for a long time, welinking Bangkok and Chonburi Province, contributing to the mitigation of

conduct training of supervisors and other initiatives to determine how best toenvironmental issues.

support them. In June 2016, the National Commission for Promotion andDevelopment of Disabled Persons Life Quality visited CKT to observe how
our employees with disabilities were faring. CKT will continue to promote
diversity going forward, and will strive to ensure that all of its employees canwork with vitality and enthusiasm.
* Employment of People with Disabilities in Thailand from the Japanese Embassy in Thailand website

I am hearing impaired, but I am able to communicate byreading lips and with sign language. I have many friendsaround me who support me. At CKT, I am able to do avery rewarding job, work with wonderful colleagues, andearn an income. I am truly happy to be able to work at
CKT as a valuable member of the company and society.
Taksapon Pannaroj

17

2016 in Review
Highlights
Highlights of Initiatives in Fiscal 2016
In light of the social issues facing the globe, the Calsonic Kansei Grouphas identified key CSR issues in line with ISO26000’s “7 core subjects,”
and is pursuing a wide range of initiatives with the aim of resolving thoseissues. We were able to achieve many things in Fiscal 2016, including
the establishment of our human rights policy and the development of
eco-friendly products.

Sustainability Management Policy
As a member of the global society, the Calsonic Kansei Group believes it must
fulfill the trust and expectations of all of our stakeholders, including our customers
and business partners, and must move forward and develop together with them.
Under the awareness of this requirement, the Calsonic Kansei Group has set a“Corporate Vision” that describes the ideal state we aspire to, a “Mission
Statement,” and “Values: the CK WAY” (action guidelines), which our employees
must possess in order to achieve the Corporate Vision, and is engaged inbusiness management based on social ethics.

Corporate Vision
A global automotive company, inspired to be world-leading ininnovation and monozukuri while contributing to a sustainable
society
Mission Statement
Global
We create the strongest worldwide automotive supplier brand by cohesively blending
our diverse cultures into one dynamically agile team.
Inspired
We persistently invest in the CK core values, generating pride, passion, and loyalty in all of ourteam members.
World Leading Innovation
We harness creativity and a monozukuri spirit from our team members to be
first-to-market with high quality products and processes for our customers.
Sustainable Society
We are committed to being a socially responsible corporate citizen that brings value to

VISION

our shareholders, communities, and team members.

Values: the CK WAY (Action Guidelines)

MISSION

BEST

VALUE
CKLC
CK WAYCOMPLIANCE
18

CKPS

Individual

Team

Task

1．
Challenge

1．
Cross Function / Cross Region1．
Fact-Driven

2．
Independence

2．
People Oriented

2．
Continuous

3．
Learning

3．
Diversity

3．
Commitment & Target

4．
Transparency

CSR Policy

Responsibilities to Shareholders
We aim to improve our profitability by continuously developing competitive products,

Responsibilities to Stakeholders and Society
Calsonic Kansei’s CSR Policy outlines the responsibilities and policies Calsonic Kansei
promises to fulfil for its stakeholders, with a view to achieving its “Corporate Vision.”and at the same time, we aim to enhance the company’s corporate value by conducting
fair business trade and with proactive information disclosure in order to return thegenerated benefits to our shareholders.

Based on this policy, each employee contributes to the achievement of a sustainable
society by conducting their daily operations with an awareness of social responsibilities
and with well-balanced business management based on environmental, social, andeconomic aspects.

Responsibilities to Society
Monozukuri
We will contribute to the automotive society through our products by focusing on
three key technologies: Environment, Safety and Comfort

Responsibilities to Customers
We aim to be the most trusted parts supplier by responding to the diversified
needs and expectations of society and providing high-quality products andservices that satisfy our customers.

Responsibilities to Business Partners

Environment: Technologies for developing eco-friendly-vehicles
Safety: Technologies for creating automotive society without car accidents
Comfort: Technologies for developing vehicles which drivers can drive with
comfortEnvironment
We will contribute to creating an enriched society by each employee always being

We will collaborate with our business partners, who provide us with components and services,

aware of the importance of nature and putting effort into conserving the environment

as equals, and aim to create mutual improvement and sustainable growth through fair andthrough intellectual innovation gained from the integration of new technologies.

ethical business practices.

Responsibilities to Employees

Participation in Social Activities / Social Contributions
We will contribute to the sustainable development of society as good corporate citizens

We respect the diversity and value of each employee and provide opportunities for them toby proactively participating in social activities of local communities through ourdevelop talents that contribute to the company and to society, as well as securing a healthybusiness activities.

and safe workplace environment. With this approach, we will create a company in which
every employee can enjoy a rich life of hope, passion, and pride.

Responsibilities to Employees’ Health and Safety
Based on the basic principle “the Health and Safety of employees takes precedence overall,” we are committed to creating the safest and most appropriate workplace in theauto-parts industry through the participation of all employees.

19Sustainability Report 2017
Japan= Calsonic Kansei and Group companies in JapanCK= Calsonic Kansei only

Global = Clasonic Kansei and Group companies in Japan and overseas

Overseas = Overseas Group Companies

Establishing the Foundations for Responsible Management

AL

OR[Organizational Governance]

NIZATIONGAThe Calsonic Kansei Group believes it is vital to contribute to creating a prosperous society through ourbusiness activities and to have excellent relationships with all of our stakeholders. To remain a trusted
company in society, we have established corporate governance policies with a strong focus on CSR. With a

OV

E

G

ERNANC

commitment to law-abiding and ethical management, we are enhancing risk management and building
systems able to achieve stable product supply in emergency situations.

Highlights of Initiatives in Fiscal 2016
CK

Corporate Governance System
Calsonic Kansei is a company with a board of company auditors, and has established a corporate governance system that centers on the Board of Directors, thecompany auditors, and the board of company auditors.
Calsonic Kansei complies with the Corporate Governance Code that came into force on June 1, 2015 and with its various principles. We also strive to provide timely
and appropriate disclosure of information through our corporate governance reports and sustainability reports.
Two of the five directors are external directors. They bring diverse perspectives to the management of the company’s business, and enhance the mutual monitoring
functions of the directors. The company auditors audit the directors’ execution of their duties with strict impartiality from an expert viewpoint, and with two of the four
company auditors coming from outside the company, we are able to ensure that our audits are conducted from a more independent standpoint. In this way, we are
striving to strengthen our auditing functions.

GlobalBCP Preparation

Disaster Prevention System

At the Calsonic Kansei Group, we have established Disaster Management Regulations, toserve as our business continuity plan (BCP) in preparation for disasters such as earthquakes

Central Disaster
Task Forceand typhoons. We have also developed the Company-Wide Disaster Prevention Manual as a

(General Manager = President)

guide for action to be taken by employees, based on these regulations.
In the event of a disaster with the potential to disrupt production continuity within the Group, aCentral Disaster Task Force will be set up at Group Headquarters.
To date, this Central Disaster Task Force has come into action on two occasions—the Great

Central Disaster
Response Council

East Japan Earthquake and the major flooding in Thailand. In these cases it managed to secure(Council composed of

the safety of employees and achieve rapid recovery of production.

business department managers)

Furthermore, in preparation for large-scale major earthquakes, we have installed emergency
earthquake warning systems in the Group’s business locations in Japan, as well as emergency
power generators in manufacturing locations where there is the possibility of fire, so that
fire-fighting action can be taken at any time.
Additionally, at the Calsonic Kansei R&D Center and Headquarters, the main building has
systems in place to enable it to serve as a temporary shelter for people who are unable toreturn home following a disaster.

Secretariat

Restoration support
function・Corporate
・IT・Sales・Procurement
・Accounting
・Development
・Quality・Manufacturing
・Production Engineering
・Human Resources /General Support

Disaster Task Force foreach business location

MY CSR
20

Calsonic Kansei Group employees tell us about CSR activities
they are carrying out personally, either at the company oroutside, and their personal CSR motto(From left) Dong Jia Min , Chen Xi, Huan BinBin
To support the health, lifestyles, and education of children who are the bearers of
the future, on February 28, 2017, we made a donation to the China Children and
Teenagers’ Fund, a fund that assists socially vulnerable children.

Sustainability Report 2017

TS

H

[Human Rights]

N RIGHMA
U

Fostering a Corporate Culture of Respect for Human Rights
In the Calsonic Kansei Code of Conduct, the Calsonic Kansei Group clearly states that it respects diversity
and human rights.
We established the Basic Policy for Human Rights and the Human Rights Priority Policy. Through these
concrete policies, we are thoroughly promoting human rights and labor considerations among employees,
and accelerating Group-wide actions that will encourage more respect for human rights in the supply chain.

Highlights of Initiatives in Fiscal 2016
GlobalGlobalEstablishment of human rights policy insupport of international standards

Towards Solutions for Global Challenges
In accordance with the Modern Slavery Act established in the United

In April 2016, the Calsonic Kansei Group established a Basic Policy for Human Rights andKingdom in March 2015, Calsonic Kansei Europe published its annual

Human Rights Priority Policy. In consideration of the increasingly globalized nature of ourstatement for Fiscal 2015 (April 2015 – March 2016) on its website on

business, we support international standards regarding human rights, including the UN

September 30, 2016.

Universal Declaration of Human Rights, UN Guiding Principles on Business and Human

Going forward, we will expand our initiatives to prevent forced labor,

Rights, UN Global Compact, and ILO Declaration on Fundamental Principles and Rights athuman trafficking, illegal child labor and other forms of modernWork. We are educating and training all of our employees throughout the entire Group toslavery on a global scale beyond the U.K., and we will continue tothoroughly adhere to the Group’s human rights policies so we can do our work with respectensure that our responsibilities are met across the entire supply chain.

for human rights and culture in the various countries and regions in which we operate.
>> See Pages 12-13 for details.

GlobalEncouraging more respect for human rights

CSR NEWS

Company CSR Newsletter

Intranet notices about
Human Rights Week

Company Newsletter

Message from the corporate officer
responsible for human resources postedon the Intranet during Human Rights Week

CSR in-house e-learning(Printed learning materials distributed to e
mployees without Internet access)company workplaces

Posters displayed in

In-house training forpurchasing departments ★

New employee induction training(approximately 120 trainees) ★
CK only★�GlobalHuman rights due diligence of supply chain
In 2016, we conducted a human rights due diligence trial in the form of aquestionnaire survey of nine major suppliers, and received responses from eightof those companies. We will use the comments and results of the trial to develop
and conduct a full-scale questionnaire survey in Fiscal 2017.

Mal Hughes
I arranged a day where 23 ex-employees who had given long service and after
several years of retirement were welcomed back to the Llanelli Plant (CKLL). We
reviewed the plant history and future plans, and they were given a presentation on
the changes. It was very successful and improved the morale of current and past
employees.

Human Rights Due Diligence
Questionnaire Survey

8companies
responded

out
of

9

companies,

Sangchan Thammanok
I love seeing smiles on children’s faces and I often go to visit children of the “Thai hilltribes” in the mountains. Sharing and giving mean so much to me. Though I am justa single member of society, I dream big and will continue to do what I can to help
them.

21

Sustainability Report 2017

[Labor Practices]

Creating an Organization that Values Individuality and Diversity
In order to create a workplace where all employees are able to work with vitality, the Calsonic Kansei Grouphas established the “CK WAY” (common action guidelines) for all employees, and the CK Leadership

LABOR PRACTICES

Competencies (CKLC), which forms the foundations for the actions of management-level staff. These two
guidelines define the values to be shared and put into practice in workplaces across the entire Group. As forcareer development, we recognize the importance of capitalizing on the abilities and diversity of all our
employees, and therefore strive to enhance both our evaluation systems and our human resource
development systems. We also encourage a positive work-life balance to support the diverse lifestyles ofour employees.

Highlights of Initiatives in Fiscal 2016
Japan

Fair conditions and evaluation that capitalizes on
individual abilities and diversity
The Calsonic Kansei Group and its Group companies in Japan carry out a competency evaluation, centering on the CKWAY and CKLC. The evaluation is linked to annual salary and base pay, as well as to individual performance evaluation,
which is linked to incentive pay. There is no difference in base pay or total compensation between male and female
employees of the same labor rank.
Competency evaluation is held once a year, while the individual performance evaluation is held twice a year, in the form ofinterviews between an employee and their supervisor. During these meetings, evaluation feedback is provided andindividual career development is also discussed.

GlobalHuman resources development that extends individual capabilities
The Calsonic Kansei Group believes that human resources are vital above all
else for achieving sustainable growth, and is committed to human resource
development, with an emphasis on “monozukuri” and “global.”

10

Ten Skills Meisters

Introduction of the Skills Meister System (CK only)
With five new Skills Meisters certified at a meeting of the Meister Certification
Committee held in April 2016, we now have ten Meisters playing an active role in thecompany.

Monozukuri Human Resources Development

Global Human Resources Development

In order to further improve monozukuri capabilities strengthened through global

For the purpose of developing the next generation of global business leaders, eachcompetition and roll these capabilities out on a global level, we conduct training foryear we conduct group training in English (Global Business Leader Training: GBLT)

the acquisition of knowledge and skills in a planned manner, including the Calsonicfor leader candidates from each country and region, including Japan.

Kansei Production System (CKPS) training, which is the foundation for monozukuri at

We also conduct Global Plant Manager Training for current plant managers and plant

Calsonic Kansei, and various specialized technology training programs.

manager candidates from each region, to develop global Monozukuri humanWe have also introduced a Skills Meister System to clarify the skills required forresources.

Monozukuri.

Cristina Ghita

22

The hiring of minorities is encouraged in our workplace. This is why we havecolleagues who are from the Romani minority. They are great people to work with!

Elvira Gallardo
To introduce our culture, I wrote two articles about Catalan traditions for the CKEurope Newsletter. One was about our traditions regarding Christmas presents, andthe other one was about La Diada de Sant Jordi, which is the feast day for the patron
saint of Catalonia. On that day, Catalans exchange books and roses in the name oflove.

Sustainability Report 2017

CK

GlobalPromotion of diversity

Employee Data
2014

2015

2016

Employee Data

3,622

3,643

3,741

Number of
regular employees

3,346

3,352

3,419

Male

276

291

322

Average age (years)

44.2

44.4

44.2

Length of continuous
employment (years)

19.6

19.4

18.3

Turnover rate (%)

1.2

1.0

1.3

6,055,373

6,237,718

6,394,249

Rate of employment of people
with disabilities (%)

1.85

1.93

2.07

Number of employees taking
nursing care leave

15

13

14

Number of employees taking
childcare leave

2

0

1

Employees with a range of diverse values create new innovations through healthy conflict,which leads to thegrowth of the company and individuals. The Calsonic Kansei Groupconsiders the promotion of diversity to be one of the most important management strategiesof the entire Group.
Japan

A company where women can shine
Calsonic Kansei aims to create workplaces and ways of working that will enable women invarious life stages, such as childbirth and raising children, to maximize their potential.
Accordingly, we listen to our employees’ voices through employee opinion surveys and throughthe Working Style Improvement Committee and Diversity Promotion Team, incorporating the

Average yearly salary (yen)results of such activities into various initiatives.
Furthermore, we have set the goal of at least doubling the number of female managers from thecurrent level (15 as of the end of March 2016) by the end of March 2021. This is part of theGeneral Employer Action Plan that we were required to create under the Act to Advance
Women’s Success in their Working Life.

CK

Improving company infrastructure based on employee feedback

Number of employees
returning to work
after maternity leave

In February 2017, work was completed to convert the security doors between the100

common-use areas and office areas on each floor of the headquarters building from manual
to automatic. This was done to improve accessibility, in response to feedback from%wheelchair-bound employees who found it difficult to pass through the manual door.
In October 2016, in response to requests from employees, one of the conference rooms in
the headquarters building was made into a prayer room. Rules for operating this room havebeen established so that its use is not confined to any one particular religion.

Japan

Encouraging a good work-life balanceCalsonic Kansei and its group companies in Japan have put systems in place to support the different lifestyles of our employees, which are becoming increasingly
diverse every year as the structure of society changes. The systems we have put in place under the Act on Advancement of Measures to Support Raising
Next-Generation Children exceed the standard required by the legislation.
Nursing Care

ChildbirthPre- and post-birth maternity leave

Measures for health examinations, etc.

Nursing Care Leave Scheme

Flextime Scheme

Expectant mothers are entitled to 6 weeks’ maternity

On request, pregnant women and new mothers may

Employees with less than one year’s service may

A flextime scheme has been introduced that has noleave or, in the case of multiple pregnancy, 14 weeks,

be excused from work for the time required to receive

also take nursing care leave (under the legislation,

core time requirements, with the exception thatdating back from the due date, and to 8 weeks’ leave

health guidance or undergo health examinations during

employers may exempt employees of less than one

employees work at least one hour between 8:30 a.m.

counted from the day after the child is born.

pregnancy and up to one year after the child’s birth.

year from such leave).

and 5:30 p.m.

Child Care Leave

Regular Consultation Scheme

Employees may take child care leave up to the April

Consultations are set up for employees on child care

Shorter working hours to carefor children

Leave to accompany spousebeing posted overseas

after the child turns two years of age (the legislative

leave to make it easy for them to return to work.

Employees may work shorter hours until the child

Employees accompanying their spouse on an overseas

graduates from elementary school (the legislative

posting, and who wish to remain with the company, may

requirement is for up to third grade).

take up to three years’ leave of absence while their spouse

Child Carerequirement is for up to eighteen months of age).

is posted overseas.

Kanapod Panyasiriboon
Opportunity and our own current circumstances permitting, there is so much we cando to fulfil our responsibility to society. Being a giver warms my heart. I find joy in all
kinds of activity for society’s benefit, such as building toilets for a better sanitaryenvironment, and finding foster homes for animals in shelters.

Ian Hodgson
The company supports Work Discovery Week for local schools in the area. 1,500
teenagers are given the opportunity to participate in workshops, practicaldemonstrations, careers fairs and much more. This is followed up by visits to CK
sites.

23

Sustainability Report 2017

[The Environment]

Approaches to the Environment
The Calsonic Kansei Group has developed an Environmental Policy in order to establish fundamental principles
for all Group activities. Under this policy, we are striving to protect the global environment, a common challenge

THE

for all humankind.

ENVIRONMENT

By working to reduce the environmental burden through all stages of our corporate activities and developing
eco-friendly products, the Group seeks to be a company trusted by society, customers, and all otherstakeholders, and to achieve sustainable development of the company and society going forward. We will also
make active contributions to new global approaches to the environment, such as the Paris Agreement.

Highlights of Initiatives in Fiscal 2016
GlobalCreate 10 types of world-leading eco-friendly products

In our six-year Mid-Term Management Plan, CK GX4 T10, which covered fiscal years 2011 to
2016, we declared “Green” as one of the keys to our growth strategy, and aimed to create atleast ten types of next-generation environmental technologies or products that would lead theworld. By the end of Fiscal 2016, we had commercialized ten such products, thus achieving ourtarget.
For example, we improved operating fuel efficiency and reduced CO2 emissions with ourHigh-Performance Built-in Oil Cooler/Warmers, and with our Brushless Motor for Motor Fans, we
contributed to energy conservation by optimizing cooling performance through effective controlof revolutions. Going forward, we will continue our endeavors to create world-leading products.

State of Implementation of the “Green” elements of the
Mid-Term Management Plan
2011 - 20122013 - 20142015 - 2016

EGR Cooler

Brushless Motor for Motor Fans

High-Performance Built-in Oil Cooler/Warmer

Injection Molding Skin for Instrument Panel

Water-Based Painting for Instrument Panel

Vacuum-Formed Stitched Skin for Instrument Panel

Soft-Feel, Hard-Installment Panel

CR Compressor

3D-Sewn Skin for Instrument Panel

Blower Motor for Battery Cooling

TargetTargetAchievement2

products

3

products

5

products

Weera Baimo

24

TargetAchievement

If we try to live for ourselves, we live only day to day.
If we try to live for others, even if we are not in their world, what we have done forothers will live on in those who need it.

4

products

Achievement

3

products

3

products

Yuuko Nakagawa
I was interested in volunteer work, so I am taking part in volunteer activities for thereconstruction after the Great East Japan Earthquake.

Sustainability Report 2017

Japan

Overseas

Approaches to climate change
The Calsonic Kansei Group is engaged in carbon-minimum trend endeavors

Continuing on from the previous year, our Japan operation rolled out a special(activities to reduce environmental loads) with the hope of achieving a low-carbon

energy-saving campaign, with all of our locations participating. Areas forsociety. In line with the Fiscal 2011-2016 Mid-Term Management Plan, CK GX4

improvement were identified and case studies shared, leading to improvements.

T10, we established the Calsonic Kansei Green Program 2016, which set out ourOverseas, we conducted energy conservation diagnoses to identify issues, shared

Fiscal 2016 targets and annual milestones, and worked towards those goals.

case studies, and pursued improvement initiatives.

Calsonic Kansei Group CO2 emissions by region

Transition of Calsonic Kansei Group’s CO2 emissions
and emission intensity[Thousand t-CO2][Unit: thousand t-CO2]

300[t-CO2/million yen]

Asia 34

0.24

17%
Japan

71

Europe

0.225

0.232

0.222

0.219

0.206

0.204

200

36%

0.2

26
13%

CO2

80

111

117

124

126

125

126

127

103

81

82

74

74

70

67

71

100

198 Thousand t-CO

United States

0.1

67
34%

0

2

Japan

0.3

0.285

2005

2010

2011

JapanCO2emissions (left axis)]

2012

2013

2014

2015

0.0

2016

OverseasCO2emissions (left axis)

CO2emission intensity (right axis)

Overseas

Japan

Recognition by CDP

Overseas

Promoting Resource Recycling and
3R (Reduce, Reuse, Recycle)

2015

2016

The Calsonic Kansei Green Program places emphasis on resources recycling in our
3R initiatives, and we are engaging in the reduction of waste and zero landfill.

Waste Intensity

Zero landfill

Water Use Intensity

Japan

Japan

Japan

[Waste / Sales revenue]-26.1
CDP is an international non-profit organization that calls on companies
and municipalities around the world to disclose their environmental
performance data. These disclosures are analyzed and evaluated for theuse of institutional investors and the world’s policy decision-makers. The[Landfill volumes /Waste volumes]%

0[Usage volume /Sales revenue]

%

-19.7

%

Fiscal 2016 target:
18.1% reduction[Compared to Fiscal 2005]

Target continuously
achieved since Fiscal 2006

Fiscal 2016 target:
21.4% reduction[Compared to Fiscal 2009]

Overseas

Overseas

Overseas-18.8%

Fiscal 2016 target:
6.0% reduction[Compared to Fiscal 2010]

0

Fiscal 2016 target:
Maintain zero landfill

%

-2.6

%

Fiscal 2016 target:
4.0% reduction[Compared to Fiscal 2010]

CDP Climate Change Report 2016, a survey on climate change initiatives,
gave the Calsonic Kansei Group an A- (Leadership) score, up from the D
we received in 2015.

Shauna Wilkinson
I recently supported an Easter Egg donation collection with a recruitment agency.
Our aim was to collect as many eggs as possible for The Great North Children's
Hospital (GNCH) in Newcastle. It is one of only 14 major children’s medical centersin the U.K. We have several black bags full of all different kinds of eggs!

Masaru Hashiba
I have been a member of my local volunteer fire brigade in the city of Kitakami in
Iwate Prefecture for about 30 years, where I have been working to enhance andstrengthen the local community’s fire-fighting and disaster-prevention capabilities.
There are ten members of the brigade in the company, which is contributing to the
local community as a Kitakami City designated fire-fighting cooperation workplace.

25

ING PR
RAT
A
PE

S
ICE
CT

FAIR
O

Sustainability Report 2017

[Fair Operating Practices]

Adhering to Standards of Ethical Conduct
The Calsonic Kansei Group recognizes the importance of all employees practicing compliance, based on astrong sense of ethics, in order to facilitate business activities. In 2003, we established the Calsonic Kansei
Global Code of Conduct and took the opportunity to conduct education and awareness activities in order tostrengthen our global compliance structure. In recent years, we have been enhancing communication with ourbusiness partners and driving initiatives across the entire supply chain.

Highlights of Initiatives in Fiscal 2016
GlobalBuilding a stronger compliance mindset
To build a stronger mindset among our employees, the Calsonic Kansei Group
conducts Code of Conduct training every year, and collects pledges from theparticipants. The rate of recovery of pledges in Fiscal 2016 was 100% both in Japanand overseas. In response to the global risks of anti-trust and anti-bribery laws, wehave developed basic policies and rules for Global, Japan, and our overseas sites
as part of our Code of Conduct education, and engaged in publicizing and raisingawareness about the policies and rules throughout the whole company. In Fiscal
2016, in addition to a total-participation education program, we conducted training forour executives in Japan on anti-bribery laws, and training for relevant departments in

Anti-bribery law training for corporate officers in Japan

Japan, the Americas, and Europe on anti-bribery and anti-trust laws. We will
progressively introduce similar training programs in Asia going forward. We havealso rolled out Supplier CSR Guidelines to our suppliers and are seeking theirTrend in number of internal whistle-blowing incidents

cooperation for thorough compliance in areas such as prevention of bribery.

2014

234

2015

cases

309

2016

cases

312

cases

GlobalSupply Chain Management
With the globalization of the Calsonic Kansei Group’s business, our supply chain isalso expanding globally. We are striving to improve our CSR management while
sharing our thoughts and policies about how to promote CSR activities with our
suppliers. In Fiscal 2016, we strengthened our in-house systems regarding humanrights, labor, and environmental issues, in which interest is growing around theworld, as well as CSR, and conducted a trial supplier due diligence questionnaire
survey. In May 2016, we added several new requirements to the Calsonic Kansei
Supplier CSR Guidelines (Japanese and English) that we developed in Fiscal 2015,

Supplier

CSR Activities

Supplier

including handling of conflict minerals.

Supplier

Wang Chen

26

To contribute to the company’s Mid-Term Management Plan, I ride my bicycle to andfrom work every day. It has made my commute a lot shorter. Why not join me instarting energy-saving activities.

Kazuyo Oyama
Our group, called FREE STYLE, collects the pull tabs from empty cans discarded
at the plant and donates them to a nearby elementary school. The school
apparently finds them useful for welfare activities and as learning materials for thechildren’s use.

Sustainability Report 2017

[Consumer Issues]

Providing Safe, Quality Products
CONSUMER ISSUESThe Calsonic Kansei Group is focused on quality as an essential element required to meet the expectations ofvarious customers, from improving performance to ensuring safety and reliability and achieving comfort. Basedon this approach, we consider quality to be one of the most important key issues for the company as a whole,and continue to provide high quality in all processes, including development, design, production, and logistics.
We also focus on improving our customer responsiveness through such activities as ongoing customer
satisfaction surveys.

Highlights of Initiatives in Fiscal 2016
GlobalInitiatives for improvement of quality and reliability
Calsonic Kansei is taking the lead by working to improve our technological capabilities related to quality and reliability. In 2003, our air-conditioning business unit promptly
received ISO/TS 16949 certification, a new quality standard for the automotive industry. By 2005, all of our Group companies had acquired this certification for all products.
In addition, in order to ensure a high degree of quality in development, we have reproduced market environments based on examinations on those in the world and throughstate-of-the-art equipment and experimental technologies, and conducted product development at the four levels of vehicles, systems, components, and elements andmaterials. We have robust development quality assurance processes in place for the pursuit of development of products that are highly safe and reliable and that will meet withour customers’ satisfaction.

DesignExperimentation and Verification

Vehicle compatible design

Vehicle performance evaluation

VehiclesSystem evaluation

System compatible design
Systems

Component evaluation

Component design
Components

Element and material evaluation

Element and material design

Development Quality Assurance on Four Levels

Devices andmaterials

3.36

GlobalCustomer Evaluation

3.35
3.28

3.30

The Calsonic Kansei Group’s goal is to lead the industry through monozukuri activities in an automotive

3.26
674

society and to continue to provide new value in many areas. We strive to achieve “good monozukuri,”delivering at a high quality and appropriate price that meets the needs of our customers, while also focusing

3.31
715

711

705

2014

2015

2016

581

3.05

on improving our customer responsiveness.

469

Since 2005, we have conducted a customer satisfaction survey once a year.
The survey asks customers to apply a rating from 1 to 5 on items related to quality, cost, delivery,
development, management, and sales activities (QCDDMS) along with comments on specific improvement

214

requirements. In Fiscal 2016, we received 705 responses and achieved an average rating of 3.36 points outof a maximum of five points. We aim to use this survey as a contact point for further enhancing
communication with customers and for improving customer satisfaction.

2010

2011

2012

2013

Number of responses received

Atipong Tahla
Sharing knowledge is like sharpening a saw. The more we share the more we know
because we will keep on learning more and more as well. I enjoy sharing myknowledge with others.

Evaluation point

Kaori Numabe
As a diversity promotion leader, I try to share information and set a good example forothers in the pursuit of activities that give due consideration to objectives and effects.
Future activity plans include engaging in the development of a working environmentthat is equally pleasant for everyone, regardless of gender or occupation.

27

[Community Involvement and Development]

ITY INVOLV
UN

ENT
EM

COM
M

Sustainability Report 2017

Contributions to Local Communities
From the perspective of creating a sustainable society, companies are being called on to build relationships of

DE

N

AN

D

T

co-existence and co-prosperity with the diverse communities with which they come in contact through their

VELOPME

business operations. As a corporate citizen, the Calsonic Kansei Group is actively involved in support for future
generations and in local community activities, and rolls out multi-faceted social contributions that make the mostof the Group’s characteristics and know-how.

ighlights of Initiatives in Fiscal 2016
GlobalStrengthening social contribution activities in our global operations
In order to contribute to the development of a better society, the Calsonic Kansei Group is expanding and enhancing our social contribution
activities. In Fiscal 2016, we deliberated on the directions for future activities, centering on four main themes, and made the decision tostrengthen and roll out our social contribution activities on a global scale.

Supporting the next generation

SafetyJapan

Support for the monozukuri human resourcesof the future

Environment

Community

Number of participants attending Kids Engineer (2016)

Team SKETT is a group made of staff from Calsonic Kansei and our domestic Group
companies who responded to an open call for participants. The team provides a varietyof hands-on monozukuri experiences for elementary school students.
Team SKETT has participated in Kids Engineer, a hands-on exhibition for elementary
schoolchildren organized by the Society of Automotive Engineers of Japan, Inc. since theMore thaninaugural event in 2008.
In Fiscal 2016, Team SKETT participated in Kids Engineer 2016, held in Yokohama in
August, and in Mini Kids Engineer in Tohoku, held in the Tohoku region in November.

participants attended

More than 4,000 participants learned about the enjoyment of monozukuri at these
events. The team has also been conducting traveling classrooms for elementary school

4,000

Traveling classrooms for elementary schools

students since 2012. In Fiscal 2016, it conveyed the fun of science to more than 800
students at more than 16 elementary schools.

Traveled tomore than16

elementary schools

Miki Yamamoto
Whenever I see Fair Trade coffee for sale, I make a point of buying some.

28

More than800

school students participated

Hu JunTo provide assistance for the lives of seriously ill patients, in March 2017, I made adonation to the Wuxi Charity Federation (a government-established fund for the Wuxi
region).

Sustainability Report 2017

GlobalAs a good corporate citizen
Both in Japan and overseas, we aim to contribute to local communities as a good
corporate citizen by recommending and sponsoring staff volunteers atgovernment-hosted events. We also strive to forge partnerships with local
communities by setting up various opportunities for communication with them.

Junichi Hamasaki
Through a range of activities, I continue to strive to put smiles on faces in theworkplace, on my family’s faces, and on the faces of the neighborhood children.
Those smiles are the source of my vitality.

Alexis Valverde
I wrote an article about CSR and our workplace for the CK Europe Newsletter. It was
about the wonderful party to celebrate the 25th Anniversary of the foundation of CK
Spain. I wanted to share the joy of the wonderful time we had at the party with ourcolleagues from across Europe.

29

Sustainability Report 2017

Third-Party Opinion

was very evident in the report. The initiatives directedthat the employees of the Calsonic Kansei Group willat human rights and labor practices were, of course,

continue to engage in their day-to-day work with

Kumi Fujisawa

very impressive, but I thought that the “MY CSR”

confidence and a sense of pride that they arecomments of employees from the various countries atcontributing to society.

Co-Founder, Think Tank SophiaBankthe bottom of the page in the second half of the report
was a wonderful innovation that really conveyed theSerious about realizing a sustainable
societyfact that each individual employee is responsible forFirstly, above all, I would like to pay my respects to

Stakeholders’ Voices

the company’s sustainability initiatives.

the Calsonic Kansei Group for its commitment toreleasing a sustainability report despite havingf I were to make a suggestion for future reports, thedelisted its shares from the stock exchange. Further,inclusion of more comments from stakeholders, suchthe decision to also produce a printed summaryas the suppliers that together form the Group’s

version for distribution to its employees and the words

supply chain, would give added depth to the detailedof the CEO, Mr. Moriya, in his message, ‘The key toreports of the Group’s CSR initiatives. Also, as anachieving this goal will be just how far each and every

unlisted company, mention of relationships with

employee can act with a “CSR mindset,”’ indicated toinvestment funds and the reflection of the opinions ofme just how serious the Group is about realizing its

the funds’ shareholders would give shareholders

vision of contributing to the realization of a sustainablefurther peace of mind in holding expectations for thesociety.

future of the company.

Kumi Fujisawa
After having worked for Japanese and foreign investment

Further, if I may make a very minor quibble, overall,

Respect for individual employees as theones charged with carrying out thesustainability visionfund management companies, Kumi Fujisawa founded thethe report has an abundance of diagrams and a very

first investment trust evaluation company in Japan. She

soft color scheme, but I did feel that much of thecontent assumed an understanding of the company’s

later sold that company to a global credit-rating firm, andhelped establish the think-tank, SophiaBank. She hasbusiness on the part of the reader. A little moreinterviewed over 1,000 business owners and, throughThat seriousness of intent was not only evident in theingenuity in the sub-headings and explanations would

partnerships with the Davos Conference, is engaged inCEO’s words. I could detect sustainability-based

help people with little knowledge of Calsonic Kansei

creating mutually beneficial bonds between the public andapproaches in every aspect of the company’s

to read the report with interest and give them a better

private sectors in Japan and overseas.

business activities as described in the report. For

understanding, which may serve to increase

example, I learned about the detailed initiatives being

readership of the report. In that respect, it may be a

implemented, such as the environmental awarenessgood idea to involve new employees or people fromat production sites in Japan and around the world,the local community in the production of the report.

and the CSR procurement and CSR guidelines for its

The online version does an excellent job of describing

supply chain.

the certain initiatives that the company is taking

What impressed me the most was the value thattowards sustainability, which the Group perceives as

management places in every single one of thea major pillar of its business. A little more ingenuity inGroup’s employees, that is, the people charged withthe presentation would help to attract even morecarrying out the Group’s vision for sustainability, whichpeople both in Japan and overseas to read it. I hope

I would like to thank Ms. Fujisawa for her valuable

since last fiscal year to communicate the information

observations about our Group’s CSR activities andin this report a way that is easier for people reading it

report.

for the first time to understand, but we will work on

The Calsonic Kansei Group positioned Fiscal 2015 as

improving this aspect of the report even further.

our First Year of CSR, and has engaged in CSR

In our aim to become a corporate group that will

activities with the mission of contributing to society

develop sustainably alongside society, our executive

through our business. We have recently undergone ateam and each and every one of employees will face

major change in shareholders, but we have made the

our CSR activities seriously and strengthen ourdecision to expand these activities even further andengagement even further.

are currently working on concrete plans.

Response to Third-Party Opinion

Regarding Ms. Fujisawa’s comment about our

Seiichi Kakizawa

more of our stakeholders and deepen our

Executive Vice President and CFO,
Calsonic Kansei Corporation

engagement with them. Also, we have been working

stakeholders’ voices, we will pursue dialogue with

Jenwit Nala-ong

30

Every time I see people like the homeless who are suffering, I wonder what I can doto help them. I cannot give much but I do what I can, such as donating my usedbooks. Sharing with and helping others make me so happy.

Corina Schiopu
Last Christmas, I organized a donation drive for one of our colleagues, a single
parent who was at risk of losing their home after falling into financial difficulties.

Sustainability Report 2017

Global Network

RUSSIAU.K.

GERMANYFRANCE
SPAIN

Republic of Korea

ROMANIA
CHINA

INDIA

U.S.A.

JAPAN

MEXICOTHAILANDMALAYSIABRAZIL

Major Overseas Locations

Major Business Locations in Japan▼United States of America▼China▼Major Locations in Japan

Calsonic Kansei North America, Inc.

Calsonic Kansei China Holding Company
Calsonic Kansei (Wuxi) Corporation

R&D Center, Headquarters
Testing Research Center
Production Engineering Center▼MexicoCalsonic Kansei Mexicana, S.A. de C.V.

▼BrazilCalsonic Kansei do Brasil Industria eComercio Ltda.

▼United Kingdom
Calsonic Kansei Europe plc.
Calsonic Kansei UK Limited
Calsonic Kansei Sunderland Limited▼SpainCalsonic Kansei (Shanghai) Automotive
Technology R&D Co., Limited
Calsonic Kansei (Guangzhou) Corporation
Calsonic Kansei (Xiang Yang) Corporation
Calsonic Kansei Components (Wuxi) Corporation
Calsonic Kansei Components(Guangzhou) Corporation
CK KS Engineering (Guangzhou) Tooling Center
Calsonic Kansei (Haimen) Corporation
Calsonic Kansei (Shanghai) Corporation
CK Electric Machinery Development (Shanghai)▼Republic of Korea
Calsonic Kansei Korea Corporation

Calsonic Kansei Spain, S.A.

▼Malaysia▼Russia

Calsonic Kansei (Malaysia) Sdn. Bhd.

Calsonic Kansei RUS LLC▼Thailand▼Romania

Calsonic Kansei (Thailand) Co., Ltd.
Siam Calsonic Co., Limited

Calsonic Kansei Romania S.R.L.

▼France
Calsonic Kansei Europe plc.
France Branch Office▼Germany
Calsonic Kansei Europe plc.
German Branch Office▼IndiaCalsonic Kansei Motherson Auto Products Limited▼Major Facilities in Japan
Utsunomiya Office
Atsugi OfficeHamamatsu Office
Nagoya Office
Kurashiki Office
Hiroshima Office▼Manufacturing Plants in Japan
Gunma Plant
Yoshimi Plant
Kodama Plant
Oppama Plant▼Group Companies in JapanCKF CorporationCKK Corporation
Tokyo Radiator Mfg. Co., Ltd.
CKP Corporation
Calsonic Kansei Utsunomiya Corporation
KS Engineering Co., Ltd.
CK Engineering Corporation
Calsonic Kansei Yamagata Corporation
Calsonic Kansei Iwate Corporation
Calsonic Kansei Business Expert Corporation
CK Sales Co., LTD

As of May 31, 201731

Sustainability Report 2017

Company Overview

Editorial Policy

Name

About this Report

Calsonic Kansei Corporation

The Calsonic Kansei Group published its first Sustainability Report in 2014,
Location of
headquarters

2-1917 Nisshin-cho, Kita-ku, Saitama City, Saitama

reporting on its ideas and various initiatives as a communication tool tostakeholders and as part of efforts to release information about its Corporate
Social Responsibility (CSR) activities.

Main products

Cockpit modules, front-end modules, exhaust systems,

The Sustainability Report 2017 is the fourth issue of this report. To communicate

air conditioning units, compressors, meters, radiators

information in a timely manner and to provide our stakeholders with better
access to the information they require, we have made changes to the

Number ofgroup companies

composition of the report, centering on the website version. The website version
Consolidated: 34*

can be accessed at the following URL.
We have also produced a digest of the report in the form of this booklet. It

Number of
employees

provides a compact summary of the contents of the report to familiarize even

Consolidated: 22,424*

first-time readers with the Group’s sustainability endeavors. We visualized
information as much as possible.

Major clients

Audi AG, Daihatsu Motor Co., Ltd., Daimler AG, Geely Automobile,
General Motors Corporation, Hino Motors, Ltd., Honda Motor Co.,
Ltd., Isuzu Motors Limited, Jaguar Land Rover Limited, Mazda

Website CSR Page
www.calsonickansei.co.jp/en/csr

Motor Corporation, Mitsubishi Motors Corporation, Nissan MotorCo., Ltd., Peugeot S.A., Renault S.A.S., Subaru Corporation,
Suzuki Motor Corporation, UD Trucks Corporation, Volkswagen AG

CapitalApplicable Scope
Calsonic Kansei Corporation and Group companies¥1.6 billion* As of March 31, 2017

Applicable Term
Mainly Fiscal 2016 (April 1, 2016–March 31, 2017)
Publication Date
June 2017 (previous report: June 2016; next report: June 2018 (scheduled) )Reference Guidelines
Global Reporting Initiative (GRI) G4 Sustainability Reporting Guidelines
Environmental Reporting Guidelines of the Ministry of the Environment of Japan
Support for various principles, etc. concerning the environment, society andmanagement
Calsonic Kansei is in agreement with the initiatives laid out in policies such as the UN
International Bill of Human Rights, the UN Guiding Principles on Business and Human
Rights, the UN Global Compact, the ILO Declaration on Fundamental Principles andRights at Work, ISO 26000 (Guidance on social responsibility ) and the Keidanren(Japan Business Federation) Charter of Corporate Behavior, and implements initiatives
to help achieve these important management indexes.
Third-Party Assurances and Opinions
No third-party assurance was obtained for this report.
A third-party opinion of a noted CSR and ESG (environmental, social, and governance)expert is included in the summary version and website of the Sustainability Report 2017.

We look forward to receiving your opinions and comments of this report.
CSR/Public Relations & IR Group
Corporate Planning Division
Calsonic Kansei Corporation
2-1917 Nisshin-cho, Kita-ku, Saitama City, Saitama 331-8501
Online Contact Form
www.calsonickansei.co.jp/en/csr/opinion

Please Note:
This report contains forward-looking statements. Please be aware that actual results
may differ due to various industry-related factors.
In case of doubt or difference of interpretation, the Japanese version shall prevail overthe English version.

Sustainability Report 2017

Calsonic Kansei Corporation
CSR/Public Relations & IR Group
Corporate Planning Division
R&D Center, Headquarters
2-1917 Nisshin-cho, Kita-ku, Saitama City, Saitama 331-8501
www.calsonickansei.co.jp