Sustainability
Report 2016
Highlight Edition

Nihon Radiator Manufacturing Co., Ltd. (1938)

Kanto Seiki Co., Ltd. (1956)

Calsonic Kansei Corporation (2000)

We at Calsonic Kansei Group have been supporting the motorization ofJapan and the world since its very beginning.
We will continue to progress together with and contribute to society.

Corporate Vision
A global automotive company, inspired to be world-leading ininnovation and monozukuri while contributing to a sustainable society

Calsonic Kansei Corporation

Sustainability Report 2016 Highlight Edition

Contents

Consolidated Revenue(billion yen)

1,053.318

2015

965.5642014
2013

918.688(Fiscal year)

Our Business and Our Ideals(billion yen)38.2362015

2

Global: Reaching Out into the World

4

Inspired: Moving Forward as a Passionate Team

5

Innovative: Contributing to Society through Innovation

6

Sustainable: Valuing Harmony, Growing Dreams

7

Message from the President and CEO

8

Interview with the President and CEO

931.5982015 Highlights

28.826(Fiscal year)

Consolidated R&D Expenditures
2015
2014
2013

29.23927.72427.059Number of Employees

2014
2013

12–17

Developing Eco-Friendly Products

12

Respecting and Developing Diversity

14

Participation in Motorsports

16(billion yen)

(Fiscal year)

2015

8–11

Introduction

Unique Value Contributing to Society
2013

2–7

For a Comfortable and Sustainable Automotive Society

Sustainable Society

Consolidated Operating Income

2014

Supporting Today, Creating Tomorrow(people)21,987

Integrity and Responsibility
Ongoing CSR Activities

18–27

Sustainability Management Policy

18

Calsonic Kansei Group KPIs

20

Organizational Governance21

Human Rights

22

Labor Practices

23

Environment

24

Fair Operating Practices

25

Consumer Issues

26

Community Involvement and Development

27

20,904
20,273(Fiscal year)

The JPX-Nikkei Index 400 (JPX-NIKKEI 400) is a new stock index
composed of companies with high appeal for investors, which meetthe requirements of global investment standards, such as efficientuse of capital and investor-focused management perspectives. The
stocks to be included in the index are selected by Japan ExchangeGroup, Tokyo Stock Exchange, and Nikkei.
Calsonic Kansei was included in the index in fiscal 2014 andagain in fiscal 2015.

Corporate Information

28–31

Global Network

28

Network in Japan

29

Company Overview

30

Editorial Policy

31

Morningstar Socially Responsible Investment Index is the first SRI
index in Japan, comprised of 150 companies praised for beingsocially conscious and selected by Morningstar, Inc. from among
all listed companies in Japan. These companies’ stock prices areused to form an index. Calsonic Kansei was added to this index
on January 4, 2016.

Calsonic Kansei Corporation

Sustainability Report 2016 Highlight Edition1

Supporting Today, Creating Tomorrow
Our Business and Our Ideals

Cockpit Modules andInterior ProductsElectronic Products

Heat Exchange Products

MetersMotor fans
Cockpit module
Lithium ion battery controllers

Condensers

Radiators

These parts are touched directly by drivers
and front-seat passengers. Perceived quality,
including comfort and feel, is important inthese products, in addition to functionality
and safety.

Our scope has recently expanded to include
electronic control devices in electric vehicles,in addition to easy-to-see and easy-to-use
control devices.

Automobiles include many parts that cool orheat fluids such as engine coolant, oil, andrefrigerant. Our products provide reliable
control of these parts.

Main Products

Main Products

Main Products

Instrument panels
Center consoles
Cross car beams

Inverters
Body control modules
Keyless entry
Occupant detection systems

Front-end modules
AT oil coolers and warmers
Charge air coolers
EGR coolers

For a Comfortable and Sustainable
Automotive Society

Currently, our products at the Calsonic Kansei Group have expanded greatly from thetwo business lines at the time of our founding—coolers (radiators) and instruments—
into six product areas, supporting automotive manufacturers in Japan and overseas
as an automobile parts manufacturer.
In order to contribute toward a comfortable and sustainable automotive society, we
continue to keep evolving our businesses in all areas of monozukuri.

2

Calsonic Kansei Corporation

Sustainability Report 2016 Highlight Edition

Climate Control Products

Compressors

Exhaust Products

Intake blower unit
Air conditioning unit

Evaporator

Variable displacement
compressor

Fixed displacement
compressor

Heater core

Exhaust system

These products provide a clear field of view
and a comfortable cabin space, ensuring thesafety, security, and comfort of the driver andpassengers.

As the heart of air-conditioning systems,
these products help reduce environmental
impact by improving operational and fuelefficiency.

By satisfying conflicting requirements, suchas quiet operation, high engine output, andexhaust gas purification, these products
promote harmony between automobiles
and society.

Main Products

Main Products

Main Products

Single-sided swash plate type variabledisplacement compressors
Rotary-vane fixed displacement compressors

Exhaust manifold converters
ValvesOxidation catalytic converter systems fordiesel applications
Diesel particulate filters

Electronic climate control units
Electrical climate control components(motor actuators, etc.)

CK data

Number of automotive manufacturers
being supplied to (as of March 31, 2016)

19

companies

Calsonic Kansei Corporation

Sustainability Report 2016 Highlight Edition3

Supporting Today, Creating Tomorrow
Our Business and Our Ideals

GlobalReaching Out into the World
With a broadening customer base and the globalization of economies,
our business field is also expanding into various places across the globe.
Currently, Calsonic Kansei Group has sites in 16 countries and regions,employing approximately 15,000 people outside Japan.
It is important for monozukuri to fit the automotive situation in each country and region.
As a global corporation, we believe it is our mission to support this with a diverse
range of perspectives and values by rooting ourselves in every corner of the world.

MISSION
Global

We create the strongest worldwide automotive supplier brandby cohesively blending our diverse cultures into one dynamically agile team.

CK data

Number of Calsonic Kansei Group
locations (as of March 31, 2016)

4

Calsonic Kansei Corporation

16

Sustainability Report 2016 Highlight Edition

countries and regions

78

production sites

InspiredMoving Forward as a Passionate Team
What do our customers and car users expect from us?
We believe that monozukuri embodies the value that we bring.
This is characterized by Global Product Data Management (GPDM),
our platform for sharing our R&D staff’s expertise across the globe.
Our people in each country and region are joined together with
passion so as to realize trustworthy technology and product quality.

MISSION
Inspired

We persistently invest in the Calsonic Kansei core values, generating pride,passion, and loyalty in all of our team members.

CK dataR&D bases and personnel(as of March 31, 2016)13

sites in8

countries

2,700

Calsonic Kansei Corporation

people, one teamSustainability Report 2016 Highlight Edition

5

Innovative

Contributing to Society through Innovation
We aim to contribute towards a sustainable society through advanced monozukuri.
This is characterized by “CK GX4 T10,” our Mid-Term Management Plan for fiscal 2011 throughfiscal 2016 which focuses on the four G’s of “Green,” “Growth,” “Global,” and “Great Company.”
One of these, “Green,” is about creating environmental technologies and products.
In this area, we have been passionately carrying out R&D to lead the industry’s eco-friendly products.

MISSION
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.

CK data

Eco-friendly products fromCK GX4 T10 (FY2011–FY2015)

6

Calsonic Kansei Corporation

9

products developed (Target: 10 products by March 31, 2017)

Sustainability Report 2016 Highlight Edition

Sustainable
Valuing Harmony, Growing Dreams

We do what we can as both a corporate citizen and a member of the automotive community.
Since our founding, we have been emphasizing management that values maintaining harmony with society.
This spirit shows itself in many ways, such as our contributions to local communities and participationin motorsport events. Our exhibit at Kids Engineer, an event for children to experience the joy of monozukuri,
entered its ninth year in fiscal 2015. We hope our activities can help to grow the dreams of future generations.

MISSION
Sustainable
Society

We are committed to being a socially responsible corporate citizen
that brings value to our shareholders, communities, and team members.

CK data

Number of children participatingin Kids Engineer 2015

Approx.

5,500
Calsonic Kansei Corporation

Sustainability Report 2016 Highlight Edition

7

Sustainable Society

Message from the President and CEO

Going Forward
Hiroshi Moriya

Calsonic Kansei Corporation
President and CEO

Introduction
In July 2011, we formed our CK GX4 T10 six-year Mid-Term Management Plan for the Calsonic Kansei Group to help us
achieve our Corporate Vision. The plan’s aim is to enable us to flexibly respond to the constantly changing global economy
and society and to continue growing through sustainable management. We must remain committed to contributing towardsocial progress and improvement in various business situations through implementation of this management plan. If we
can maintain this effort across each Group work site, then we will create a Group-wide culture able to answer the question;“What can the Calsonic Kansei Group do to go beyond compliance with laws and ethical conduct to contribute to society?”
In light of these activities, in fiscal 2015 the Calsonic Kansei Group fully launched activities as part of its “First Year of
CSR,” integrating various past activities under the CSR umbrella and establishing the CSR Mid-Term Plan. Going forward,
we will continue to expand the scope of our CSR initiatives to the whole Group and make steady progress toward achieving
our goals, as we aim to become a company that contributes to a sustainable society.

Interview with the President and CEO

Hiroshi Moriya

Masahiko Kawamura
NLI Research InstituteSenior Research Fellow and ESG Research
Office Manager

Fiscal 2016 represents the second year since the Calsonic Kansei Group declared its “First Year ofCSR.” In continuation from last year and the year before, Masahiko Kawamura, Senior Research Fellow
and ESG Research Office Manager of the NLI Research Institute, an expert in CSR research, had adiscussion with our company President Hiroshi Moriya on the subject of progress of our CSR initiatives.

Progress of the CK GX4 T10 Mid-Term
Management Plan
Kawamura: I would like to start by asking for your evaluation

global company. As you expand globally though, the risks
associated with such things as human rights and labor will
also increase, and the scope of your social responsibility willof the progress made so far in the Calsonic Kansei Group’s

expand. Your final key initiative is “Great Company,” and I

CK GX4 T10 Mid-Term Management Plan.

understand you have been included for the first time in theMorningstar Socially Responsible Investment Index.

Moriya: Fiscal 2016 will be the final year of our CK GX4 T10
plan. We set our three most important commitments as sales,Moriya: The business has been performing well for a number

operating profit, and the development of eco-friendly products,of years. “Great” doesn’t mean more drastic growth going

and we have been implementing the four key initiatives of ourforward, but rather being able to achieve sustainable growth

growth strategy for the GX4 (G-by-four) plan: “Green,” “Growth,”

despite factors that we cannot control, and being able to build“Global,” and “Great Company.” With “Growth,” we set a sales

a resilient corporate culture.

target of over one trillion yen, and we actually achieved this target

I think it is important to have Key Performance Indicators

ahead of schedule in fiscal 2015. And despite unpredictability(KPIs) to measure those non-financial aspects of CSR andincluding the rising yen, we hope to achieve an operating profit

management as well, and so inclusion in ESG (environmental,

rate of seven percent during fiscal 2016. With “Global,” we aresocial and governance) investment ratings and CSR rankings

establishing production systems mainly in emerging nations,are among our KPIs. These results help reconfirm our socialand currently have 78 production sites across 16 countries andstanding, and motivates each and every one of our employees

regions worldwide. With “Green,” our target was to develop andto work on CSR initiatives.

launch 10 eco-friendly products and we are certain to achieve

We conducted a survey of Sustainability Report readers as

this target as we have already created nine products by fiscal

well, and found that 75 percent of readers would be happy to2015.

work at Calsonic Kansei. That was a terrific surprise to me,
and it proves that we have been heading in the right direction

Kawamura: Having 78 production sites across 16 countries

with the initiatives we have conducted to date.

and regions confirms the status of Calsonic Kansei as a truly

Calsonic Kansei Corporation

Sustainability Report 2016 Highlight Edition

9

Third-Party Opinion in the Sustainability
Report 2015
Kawamura: In the 2015 report, three future challenges for
CSR management were discussed. What progress has been

Kawamura: The third issue was clarifying the scope ofreporting. There are many other companies that still offer
unclear reporting, but how is it at the Calsonic Kansei Group?

made in regard to CSR at sites outside of Japan, which wasMoriya: Certainly, there is an increasing necessity to clarify

one of those issues?

the reporting scope in relation to recent CSR initiatives inorder to properly report on the outcomes. We conduct ourMoriya: We have placed CSR personnel at each of our

CSR initiatives on a global scale, so in the future we willoverseas sites to enhance communications with thereport under two categories: Japan, which includes Calsonic

Headquarters in Japan. We focused on China in particular,

Kansei and Group companies in Japan, and Overseas, whichand brought their CSR personnel to Japan for training.

includes North America, Europe, and Asia.

Some of our overseas sites have even better CSR practices
than we do in Japan. Overall, we have developed a global
framework incorporating the many different activities we haveconducted so far, which has clarified our CSR management
systems.

Fiscal 2015 Initiatives
Kawamura: Human rights have become an important CSR
issue over recent years. While promoting work-related humanrights globally, you also have to be aware of ensuring decent

Kawamura: What about the company's contribution to solving
current social issues through your business activities?
Moriya: We have assimilated the requirements of global risk

work.
Moriya: The outcome of our fiscal 2015 initiatives that I
want to focus most strongly on is the establishment of ourhuman rights policies. We have already incorporated mostand global ESG investment ratings agencies, and listened toof our human rights policies as far as currently possible. Our

external feedback from readers of this report and other people.

challenge going forward is to establish individual policies

Through this process, we identified various social issues andfor each of our overseas sites that are in line with the local

created a Materiality Map that we have incorporated into ourcultures.

activity plan. This is the activity plan that became our CSR
Mid-Term Plan.

Kawamura: It is becoming particularly important to consider
human rights and labor in the supply chain, so what initiatives
do you have in place in this respect?

CSR Mid-Term Plan

1. Improving Employee
Awareness
1. Creating a rewarding workplace(decent work)• Promotion of work-life balance• Promotion of diversity
2. Improving employee awareness abouttackling social issues

10

Calsonic Kansei Corporation

Toward the goal of remaining an honest and trusted company,
we strive to create a rewarding workplace, develop aware
employees who tackle social issues, build a resilient company,
and contribute to the achievement of a sustainable society.
2. Coexisting with Society

3. Improving Corporate
Value

1. Compliance with international standards
in human rights and labor rules• Compliance with customer CSR guidelines• Compliance with laws and regulations
in each country(Modern Slavery Act in the United Kingdom,
CSR Reporting Law in France, etc.)
2. Resolution of social issues throughbusiness operations

1. Achieving the Mid-Term Management
Plan• Green promotion (including
development of eco-friendly products)• Becoming a “Great Company”
2. Strengthening our CSR activities• Response to opinions of SRI
evaluation organizations (Toyo Keizai,
FTSE4Good, CDP)

Sustainability Report 2016 Highlight Edition

Moriya: We employ people regardless of nationality, notonly in emerging nations but also in Japan, and use tier
two and tier three suppliers overseas. We have to promptly
implement initiatives to respond to the globalization of the
supply chain right through to tier-N suppliers. In fiscal 2015,
we revised our CSR Guidelines for Suppliers and we are
actively implementing these guidelines through dialogue andcooperation with our business partners. We are also working
hard to eliminate all problems from the supply chain, resolving
one issue at a time. And of course, we will do due diligencein this regard.

Formulation of CSR Mid-Term Plan
Kawamura: Your formulation of a CSR Mid-Term Plan iscertainly ahead of the times, but what are its main points?

Moriya: Social sustainability and sustainable growth of thecompany are closely related. To make this happen, we wantto achieve sales growth and long-term sustainable profits
regardless of economic troubles and exchange rate fluctuations
in markets all around the world, and ensure a corporate
culture and strength that enable stable management. There

Moriya: The aims of our CSR Mid-Term Plan are to be anhonest and trusted company, create a rewarding workplace,develop aware employees who tackle social issues, build aresilient company, and contribute to the achievement of aare three main issues related to achieving these aims. The
first is improving employee awareness. The foundations forthis is to create a rewarding workplace and social innovation,
which we can do by fostering individuals who can sense social

sustainable society.

issues by themselves and work to resolve them. The second

Kawamura: So it’s about building new business models

activities that comply with international charters for humanwhile maintaining the current ones in the midst of a changing
management landscape and social structure. I would saythat the key to resilient management is to determine new
business models through discussions with internal andexternal stakeholders.

is coexisting with society. That means conducting businessrights and labor. We can contribute to the achievement ofa sustainable society by applying ourselves to these twoissues, which in turn will enable us to achieve the third issueof improving corporate value. We have set these three issues
as KPIs, and have established an action plan that will serveas the pillar of our mid-term plan going forward.

Moriya: Exactly. A resilient company must search for flexibility
and strength whether in financial or non-financial areas.

Kawamura: Thank you for your time. I look forward to hearing
more about your progress in CSR management in the future.

Kawamura: Lastly, you mentioned that one of the aims of
CSR is to contribute to a sustainable society. What is youraction plan to make this happen?

Of particular note in relation to activities carried out by the Calsonic Kansei Groupduring fiscal 2015, the year positioned as “The First Year of CSR” for the Group,
was the speed with which the company reformed and advanced the full integrationof CSR into the heart of its management structure under the leadership of President
and CEO Hiroshi Moriya. The Group is to be congratulated for its activities over thisyear, including building an effective organization to drive CSR globally, creating
eco-friendly products, revising the CSR Guidelines for Suppliers, and establishinghuman rights policies and a CSR Mid-Term Plan.
Going forward, we can expect to see considerable changes to current businessmodels in the automotive industry through such things as a changing perception
Masahiko Kawamuraof what an automobile should be. The question is what form the Calsonic Kansei
NLI Research InstituteGroup’s planned “resilient company” will take in the midst of this drastically
Senior Research Fellow and ESG Research Office Manager
changing environment.
There are two things I am hoping will happen. The first is enhanced dialogue with stakeholders. Through conversation,
including dialogues with diverse stakeholders and ESG briefings for investors, issues can be identified and reflected inmanagement. The second thing I am hoping for is the establishment of super-long-term targets out to the period from 2030 to
2050. The backcasting method can then be used to drive CSR management. I look forward with great interest to future CalsonicKansei initiatives as it fulfills its role as a global enterprise for the next generation automotive industry.

Third-Party Opinion

Calsonic Kansei Corporation

Sustainability Report 2016 Highlight Edition11Unique Value Contributing to Society
2015 Highlights

Developing Eco-Friendly Products

DELIVERING Our Green Potential
The Calsonic Kansei Group is contributing to society through the creation of eco-friendly products.
Having set ourselves the target of developing 10 eco-friendly products by the end of fiscal 2016, theGroup is pushing ahead with the world’s most advanced monozukuri, to help create a green society,through many different angles including fuel efficiency and lightweighting.

Key Issues in the Mid-Term Management Plan
We believe that the most significant contribution to social
issues that can be made through Calsonic Kansei’s businessactivities is the development of eco-friendly products, so thisis being carried out as one of the key issues of the Mid-Term
Management Plan. The plan lists “Green” as one of our
growth strategies, so we have been working to lead the worldin next-generation eco-products by developing world-leading
environmental technologies and products. We set ourselves
the target of creating 10 eco-friendly products by the end of
fiscal 2016, and by the end of fiscal 2015 we have alreadylaunched nine of them onto the market.
To effectively communicate the CO2 emissions reduction
effects of our eco-friendly products during fiscal 2015, bothinternally and externally, we have also taken steps to visualize
our environmental performance.
12

Calsonic Kansei Corporation

Sustainability Report 2016 Highlight Edition

Eco-Friendly throughout the Entire Product
Life Cycle

The Calsonic Kansei Group has established its own Life
Cycle Assessment (LCA) program as part of efforts to develop
products that reduce the environmental burden throughout theentire product life cycle.
The program lists specific requirements in such areas
as fuel efficiency, energy efficiency, compactness, lightweight, ease of recycling, and non-use and minimization of
hazardous chemical substances. We have to consider theserequirements from the initial development stages in orderto build them into our products. In addition to QCD (quality,
cost, and delivery) and patent-related evaluations, we are
implementing environmental evaluations to develop evenmore eco-friendly products.
We are also currently developing products for electricvehicles, which are the most eco-friendly type of vehicle.

Progress in “Green” Mid-Term Management Plan

Develop10

new eco-friendly products that will lead the world by the end of fiscal 2016.

Post-Mid-Term
Management Plan Target

FY2011–FY2012
TargetResults2

products

FY2013–FY2014

5

products

FY2015–FY2016

3

FY2017–FY2020

products

Exhaust Gas Recirculation

Brushless motor for motor fan

Highly efficient low profile built-in(EGR) cooler

Water-based paintoil cooler/warmer

Instrument panel with injection-

CR compressor

Stitched instrument panel withmolded skin

Battery-cooling blower motor

vacuum-formed skin

12

products

Soft-feel hard instrument panel

World’s smallest EGR cooler*

World’s lightest compressor in its class** According to December 2015 data compiled by Calsonic Kansei

Eco-Friendly Products Highlights
Highly Efficient Low Profile Built-In Oil Cooler/Warmer

Injection Skin Instrument Panel

The built-in oil cooler/warmer is a product that not only cools
transmission oil, but also contributes to improving fuel efficiency andreducing CO2 emissions through reducing friction loss by quickly
warming transmission oil to the appropriate temperature during
engine start-up. Furthermore, in recent years, we have added a
product lineup that maintains the same level of performance at half
the height of previous models in order to further improve engine roomlayout. This has also resulted in reduced use of resources.

For the first time in the world, we have manufactured a skin for
instrument panels using a general-purpose injection-molding machinethat simultaneously achieves low cost and a low environmental impact
while maintaining the same level of luxurious feel as the conventional
skin made using the powder slush molding method for luxury cars.
This new skin was developed jointly with Nissan Motor Co., Ltd. By
significantly modifying the skin manufacturing method (i.e., improving
thermal efficiency), we successfully reduced the cycle time by 82%
and CO2 emissions by 47% compared to the previous method.

KEY PERFORMANCE
Performance

Equivalent toprevious models

KEY PERFORMANCE
Height reduction

-35

mm

(Compared to previous models)Cycle time reduction-82%

Calsonic Kansei Corporation

CO2 emissions-47%(Compared to previous models)Sustainability Report 2016 Highlight Edition

13

Respecting and Developing Diversity

DELIVERING Equality and Diversity
The Calsonic Kansei Group is contributing to the creation of a society where everyone is able to workwith vitality. We are continuing a range of activities focused on respecting and utilizing the diversity of allof our many employees. We are also extending these initiatives from Japan to our overseas operations.

Diversity Initiatives Producing Steady Resultsfrom the president and CEO, and for awareness activities

In April 2008, the Calsonic Kansei Group adopted the CKsuch as lectures by external experts, it is actively used for an

WAY as action guidelines for each of our employees and as

exchange of opinions at workplace-based roundtables, with

an important step toward diversity, implemented in order to

employee feedback from these events reflected in reforming

raise awareness and improve understanding. In June 2009,

systems and creating workplaces for our employees.

we launched the Diversity Project, overseen by the president.

In August 2015, the Act to Advance Women's Success inFollowing this, we established the “shine.net” diversity

their Working Life was established in Japan, which, together

promotion network in July 2010 based on a proposal fromwith other factors, is currently continuing to drive interest in

this project, and since then we have extended the network toa more diverse society. Calsonic Kansei has set a target ofinclude everyone within the Group.

doubling the current number of women in managerial positions

An important characteristic of this network is its diverse,

by fiscal 2021. Going forward, we will continue to maintainworkplace-focused activities. “shine.net” is made ofa focus on diversity as we develop human resources able

employees from various departments, plants, and Groupto utilize their individuality, and enhance management thatcompanies. In addition to its use for distributing messages

grows together with our employees.

Main Activities to Date
June 2009

Diversity Project launched

July 2010“shine.net” diversity promotion network launched

September 2014

Project Based Learning event held with Toyo University

September 2010

Roundtables held (Saitama, Gunma, Sano, Yoshimi,
and Kodama areas)

November 2014

Roundtable held to discuss work-life balance

October 2011

Roundtable held to promote compatibility between
childcare/nursing and work

February 2015

Diversity events held at each Group company andplant

May 2012

14

Annual meeting held

Calsonic Kansei Corporation

Sustainability Report 2016 Highlight Edition

March 2014

March 2015

World Café held to discuss shorter working hours forchildcare

Diversity Workshop and World Café held

Initiatives to Promote Active Participationof Women

The Calsonic Kansei Group aims to create workplaces andways of working that make it possible to maximize capabilities
in every life stage such as childbirth, childcare and nursing.
To enable this to happen, and in particular to pay attention
to the life stages of women, we listen to our customers’
voices through employee opinion surveys, the Working Style
Improvement Committee, and “shine.net” and reflect theresults of such activities through various measures.
In fiscal 2015, we held our annual meeting to enable
company-wide discussions about diversity. At the meeting,
Sachiko Fumoto, Operating Officer of Nikkei Business
Publications, Inc. and General Manager of Nikkei BP
Institute of Consumer Trends, spoke on the topic of creating
workplaces that encourage active participation of women.
Hiromi Takasaki (a woman in a managerial position at
Calsonic Kansei) and President and CEO Hiroshi Moriya also
had a related discussion. The meeting had several active
discussions on how to fully utilize the abilities of women in
enterprises. We are pushing forward these trends, with Group
companies actively conducting roundtables and other events,
and plants holding meetings with other plants and industries
to exchange views.

Initiatives to Maximize Global Diversity
With the trend toward borderless businesses, we are also
continuing to expand diversity initiatives globally. In particular,
we are continuing to conduct recruiting activities with a focus
on increasing the employment regardless of nationality,
welcoming international students and directly employing
graduates from foreign universities.
To create a workplace that maximizes our global diversity,
we need to put into place systems that enable an awarenessof issues and an understanding of diversity of cultures andvalues of our fellow workers. From this perspective, weare steadily implementing our global diversity program toinclude mid-career employees and employees in their prime
working years. The Calsonic Kansei Group is also conducting
Global Business Leader Training (GBLT) to develop future
leaders for the company. Many employees from Japanand overseas participate in this training program, which is
conducted in English and discusses a wide range of topics
from communication and presentation theory to strategy
development and social ethics. In addition to providing theknowledge required of future leaders, the program promotes
an understanding of diversity from a global perspective,
which in turn will help create a Group-wide network of humanresources that crosses national borders.

Diversity meeting

Future business leader training conducted in English

Hiromi Takasaki, a woman in a managerial position at Calsonic Kansei, holding a dialogue
with President and CEO Hiroshi Moriya

Group discussions

Calsonic Kansei Corporation

Sustainability Report 2016 Highlight Edition

15

Participation in Motorsports

DELIVERING Our Passion
The Calsonic Kansei Group has participated for many years in the top echelons of racing in Japanand overseas. The reason for this is the Group’s everlasting passion for improving society throughconstant innovation, and for enriching our culture through motorsports.

Pushing the Limits to Achieve Further
Technological Improvement

Creating Dreams, Relationships, and aMotorsports Culture

The Calsonic Kansei Group supplies automotive parts

Japan’s motorsports industry can be traced back to thethat play an important role at the international level, andfounding of the Japan Automobile Federation (JAF) in 1962 tois responsible for delivering safety and security. We are

oversee the motorsports industry. In 1963, the first Japaneseworking to develop perfect products able to achieve their

Grand Prix was held. The Calsonic Kansei Group itself has

full performance regardless of the weather, environment, or

had a long association with motorsports going back over 30

usage conditions.

years to 1982.

As one of those activities, we are supplying products to theThrough motorsports, spectators group together to support

motorsports industry. Our products are predominantly high-their favorite team during races, and that creates strong bonds

performance heat exchangers that are able to withstand the

between them. Through motorsports, the Calsonic Kansei

harsh conditions on the race track. This enables us to verify aGroup hopes to contribute to creating these bonds andrange of technical devices and issues under racing conditions

realizing dreams for our employees, their families and otherso we can develop products that always function correctly

car enthusiasts.

even under severe conditions.

The Japanese automotive industry is also a massive source

The Calsonic Kansei Group will continue to developof employment as well, providing work for about five million

products through motorsports so that we can further improve

people or more. We believe that one of our most important

our technologies, and this will lead to products that provide

missions is to increase the number of car enthusiasts throughpeace of mind for everyone.

motorsports, and to further grow this industry in doing so.

16

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Calsonic Kansei Elevates to a Higher Level
with Supplier Agreement with McLaren

Developing the Japanese Motorsports
Industry

McLaren Honda Formula One car

From left: Hironobu Yasuda (driver), Kazuyoshi Hoshino (principal), and Joao Paulo de
Oliveira (driver)Calsonic Kansei has signed a multi-year official suppliercontract with McLaren Honda, the world-leading Formula One
team. Calsonic Kansei has a long-standing relationship with
McLaren Racing dating back to 1992, and has been supplying
heat exchangers for race cars since then. By entering into
this multi-year global partnership, the relationship between
Calsonic Kansei and McLaren will grow closer than ever.
Formula One is the highest class of international motorsports
and one of the most intense races in the world. This
strengthened relationship with McLaren Honda represents
an opportunity to accelerate product development in a placeof extreme technological innovation. Calsonic Kansei will
enhance its technical strength, and use the results of thisin future products for a wide range of customers. With the
Calsonic Kansei Group's globally-focused tagline, “Driven
by Inspiration and Innovation,” the partnership with McLaren
Honda Formula One team is contributing to increased
motivation of engineers and other staff.

Calsonic Kansei participates in Japan’s Super GT racing
series, which is the current format of a championship thatstarted existence as the Japan GT Championship (JGTC) in1994. Established for the racing versions of high-performance
grand touring (GT) production vehicles, it welcomes famous
manufacturers and teams from Japan and overseas every
year, climbing to a total of 45 teams and 17 models at thestart of the 2015 racing season. With a variety of drivers anda weight handicap system to balance races across the fullseason, the Super GT attracts around 500,000 spectators
every year and boasts the greatest popularity as Japan’s
foremost racing series. It also works hard to interact with fansand locals through a range of events it holds, realizing dreams
and providing excitement to various generations.
Unfortunately, the Calsonic IMPUL GT-R car, with
Kazuyoshi Hoshino as the team principal, only managed totake out second position overall during the 2015 Super GT
series. Using this narrow defeat as a springboard, we hope
to share the excitement and bonds of the passion of racingwith motorsports fans everywhere.

Calsonic Kansei Corporation

Sustainability Report 2016 Highlight Edition

17

Integrity and Responsibility
Ongoing CSR Activities

Sustainability Management Policy
As a member of the global society, the CalsonicPhilosophy of the Calsonic Kansei Group

Kansei Group believes it must fulfill the trust andCustomers

expectations of all of our stakeholders, including
our customers and business partners, and mustmove forward and develop together with them.
Under the awareness of this requirement, the

VisionBusiness
partners

Calsonic Kansei Group has set a “Corporate
Vision” that describes the ideal state we aspire
to, a “Mission Statement,” and “Values: the CK

Environmental
aspect

V-up

Value

CKLC
CK WAYCKPS

Social aspect

Compliance

WAY” (action guidelines), which our employees
must possess in order to achieve the Corporate

Shareholders
and investors

Mission

CSR

Environment

Society
Economic
aspectVision, and is engaged in business management
based on social ethics.

Employees

Corporate Vision

Values: the CK WAY (Action Guidelines)

The long-term direction for the company; CalsonicKansei’s raison d'etre.
A global automotive company, inspired to beworld-leading in innovation and monozukuri while
contributing to a sustainable society.

Individual

Mission Statement

1. Challenge
2. Independence
3. Learning

Task
1. Fact-Driven
2. Continuous

The Mission describes specific roles that CalsonicKansei is committed to undertake in order to reach the
Vision.

3. Commitment & Target

Global

1. Cross Function/Cross Region

We create the strongest worldwide automotive supplier brand bycohesively blending our diverse cultures into one dynamically agile team.

We persistently invest in the CK core values, generating pride,passion, and loyalty in all of our team members.

World Leading Innovation
We harness creativity and a monozukuri spirit from our teammembers to be first-to-market with high quality products andprocesses for our customers.

Sustainable Society
We are committed to being a socially responsible corporate citizen thatbrings value to our shareholders, communities, and team members.

Calsonic Kansei Corporation

2. People Oriented
3. Diversity
4. Transparency

Inspired18

Team

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CSR Policy
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.”
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, and economic aspects.

Responsibilities to Customers

Responsibilities to Shareholders and Investors

We aim to be the most trusted parts supplier by responding to

We aim to improve our profitability by continuously developing

the diversified needs and expectations of society and providing

competitive products, and at the same time, we aim tohigh-quality products and services that satisfy our customers.

enhance the company’s corporate value by conducting fair

Major dialogue opportunities
Regular sales and business proposal activities, customer
satisfaction surveys, exhibits, and information exchange meetings

Responsibilities to Business Partners
We will collaborate with our business partners, who provide us
with components and services, as equals, and aim to create
mutual improvement and sustainable growth through fair andethical business practices.
Major dialogue opportunities

business trade and with proactive information disclosure inorder to return the generated benefits to our shareholders
and investors.
Major dialogue opportunities
Shareholder meetings, investor relations webpage, financial
briefings, facility tours, study groups, individual meetings, andbusiness reports

Responsibilities to Society
Monozukuri
We will contribute to the automotive society through our

Regular procurement activities, supplier meetings (to explain our

products by focusing on three key technologies: Environment,

policies and communicate other information), and supplier audits

Safety and Comfort.
Environment: Technologies for developing environmentally-

Responsibilities to Employees
We respect the diversity and value of each employee
and provide opportunities for them to develop talents that
contribute to the company and to society, as well as securing ahealthy 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 over all,” we are committed

friendly vehicles
Safety: Technologies for creating automotive society
without car accidents
Comfort: Technologies for developing vehicles which
drivers can drive with comfort
Environment
We will contribute to creating an enriched society by each
employee always being aware of the importance of natureand putting effort into conserving the environment throughintellectual innovation gained from the integration of new

to creating the safest and most appropriate workplace in thetechnologies.

auto-parts industry through the participation of all employees.

Participation in Social Activities / Social Contributions

Major dialogue opportunities
Personnel evaluations, employee satisfaction surveys,
employee reward system, labor/management council,
consultation counter, and various types of counseling services

We will contribute to the sustainable development of society
as good corporate citizens by proactively participating in social
activities of local communities through our business activities.
Major dialogue opportunities
Kids Engineer activities and on-site lessons at elementary schools,
clean-up activities, and environmental communication activities
Calsonic Kansei Corporation

Sustainability Report 2016 Highlight Edition

19

Calsonic Kansei Group KPIs
In fiscal 2015, the Calsonic Kansei Group identified global social issues and evaluated our impact on the company, impact on
stakeholders, frequency and response to risk avoidance. We then defined key issues based on core subjects of the ISO 26000
standard.
Key Performance Indicators (KPI) have been set for each key issue and we are conducting activities aimed at meeting these KPIs.

Fiscal 2015 Results
Number of internal
whistleblowing reports

Number of conflict minerals survey
companies (Calsonic Kansei)

309 cases

285
companies

Target: 250 or more every year

Percentage of woman in managerial
positions (Calsonic Kansei)

Number of eco-friendly
products created

Percentage of employees receiving Codeof Conduct training and giving pledges

2.3%

9 products

100%

FY2021 target:
Double current number

FY2016 target: 10 products

Number of Quality System
Evaluation System (QSES) auditors

Expenditure on social contribution
activities (Calsonic Kansei)

199 auditors 9.6
FY2018 target: 270 auditors

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FY2018 target: 100% ongoingmillionyenOrganizational Governance Maintaining Trust in Our Company
Calsonic Kansei Group’s Approach
The Calsonic Kansei Group believes it is vital to contribute to creating a prosperous society through our business activities
and to have excellent relationships with all of our stakeholders. To remain a trusted company in society, we have establishedcorporate governance policies with a strong focus on CSR. With a commitment to law-abiding and ethical management, we areenhancing risk management and building systems able to achieve stable product supply in emergency situations.

Fiscal 2015 Activity Highlights
CSR-Related Governance System
The Calsonic Kansei Group is enhancing frameworks that

production continuity (supply risk), quality, and China

strengthen governance from both environmental and social

Compulsory Certification (CCC). The committee formulated

perspectives. We have established committees chaired

measures based on an execution plan, and evaluated theby company executives to discuss such areas as theexecution status and results of these measures. We work toenvironment, safety and information security, and to oversee

reduce or eliminate risks through these activities, and strive toimplementation of the PDCA cycle in each activity. In particular,

use them as opportunities to expand our business by securing

the Risk Management Committee has identified four issues

an appropriate risk level.

as major risks for the entire Group: large-scale disasters,

By working closely with these committees, we aim to solidify
and further enhance our CSR activities.

Various Committees Responsible for CSR GovernanceCommittee

Report to the Board of Directors

GEC

Responsible executive’s title and division

Risk Management Committee

3 times/year Senior Vice President, Global Corporate Development Division

Information Security Committee

2 times/year Executive Vice President and Chief Information Officer, Global IS & Process Innovation Division

Compliance Risk Management Committee
Health and Safety Management

3 times/year (jointly reported)

Environment Management Meeting

Senior Vice President, Global Corporate Development Division

4 times/year Senior Vice President, Global Corporate Development Division
2 times/year Executive Vice President, Global Production Division

Export Control Committee
Internal Audit (Office)1 time/year

2 times/year Senior Vice President, Global Corporate Development Division
2 times/year

2 times/year President and CEO* GEC: The Global Executive Committee, which consists of company officers and managers of group subsidiaries, with the CEO serving as Chairman

BCP Preparation

At the Calsonic Kansei Group, we have established theDisaster Management Regulations as part of the business
continuity plan (BCP) in preparation for disasters such as
earthquakes and typhoons. We have also developed theCompany-Wide Disaster Prevention Manual as an action
guide based on these regulations. At Calsonic Kansei, we
introduced a safety confirmation system in fiscal 2014. We
conduct safety training based on annual safety training plans,
and these measures have been gradually introduced at Groupbusiness locations in Japan since fiscal 2015.
Over recent years, and according to lessons learned
from earthquakes, we have made contributions to recoveryof regional infrastructure in the event of an emergency,
an important element of our BCP. In 2015, a groundwater
membrane filtration system was installed at the R&D Centerand Headquarters. The system draws up groundwater andsubjects it to sophisticated filtering treatment to create safe
potable water. It is able to provide drinking water to local
residents and employees who are unable to go home following
a disaster, and can continue to provide this water even if the
public water supply system is disrupted.

Groundwater membrane filtration system

Calsonic Kansei Corporation

Sustainability Report 2016 Highlight Edition

21

Human Rights Cultivating a Corporate Culture that Respects Human Rights
Calsonic Kansei Group’s Approach
In the Calsonic Kansei Code of Conduct, the Calsonic Kansei Group clearly states that it respects diversity and human rights.
In April 2016, we established the Basic Policy for Human Rights and the Policy on Human Rights. Through these concrete
policies, we thoroughly teach employees about human rights and labor considerations, and accelerate Group-wide actions thatencourage more respect for human rights in the supply chain.

Fiscal 2015 Activity Highlights
Establishment of Human Rights Policies
and Training
The Calsonic Kansei Group’s Basic Policy for Human Rights

and Training were used in a human rights education programand Policy on Human Rights include considerations for the

given to approximately 120 new graduates joining thestate of a business’s globalization, and support for various

company in 2016. Our CSR News publication, produced forinternational standards such as the International Bill of Humanall employees each week, also covers topics related to human

Rights, the Guiding Principles on Business and Humanrights in order to increase human rights awareness among

Rights, the UN Global Compact, and the ILO Declaration

our employees.

on Fundamental Principles and Rights at Work.We conduct
education and awareness activities to ensure all Group
employees follow these human rights policies so that we canmaintain respect for race, culture and other rights while doing
business in each country and region.
In fiscal 2015, we began preparations for our Human Rights
Education and Training program, including the formulationof our human rights policies. In the first session, videos andbooklets issued by the Center for Human Rights Education
A seminar for new employees

Respect for Human Rights across our Supply Chain
In August 2012, detailed laws were enacted in the United

In addition to the issue of conflict minerals, we have beenStates that require us to report the use of four major minerals

increasing our burden of responsibility as a global enterprisemined from the Democratic Republic of Congo and theas we build a supply chain that ensures proper human rights

surrounding conflict areas that could be used as a source

respect in developing nations. To this end, we have begunof funds for armed groups. With actions like this and a trend

a program of CSR due diligence that includes human rights

toward borderless economies, more and more people are

surveys of our business partners, and we have selected fiveexpecting us to establish systems with respect for human

companies for the first round. Going forward, we plan torights that cover the entire enterprise supply chain. The

expand the size of the program every year, and to improve

Calsonic Kansei Group has developed the Response Policy

and enrich the quality of the survey.

for Conflict Minerals from the viewpoint of preventing humanrights abuses in conflict zones. Since fiscal 2013, we havebeen conducting ongoing surveys of the supply chain, with a
total of 285 companies surveyed during fiscal 2015.

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Labor Practices Building a Vital Workplace
Calsonic Kansei Group’s Approach
In order to create a workplace where all employees are able to work with vitality, the Calsonic Kansei Group has set the “CKWAY” (action guidelines), which defines the sense of values to be shared across the entire Group. As for career development,
we recognize the importance of capitalizing on the abilities and diversity of all our employees, and therefore strive to enhanceboth our evaluation system and our human resource development system. We also encourage a positive work-life balance tosupport the diverse lifestyles of our employees.

Fiscal 2015 Activity Highlights
Human Resource Development
Calsonic Kansei believes that human resources are vital
above all else for achieving sustainable growth, so we arecommitted to human resource development with the dual
focus of “monozukuri” and “global.”● Monozukuri Human Resource Development
In order to further improve monozukuri capabilities
strengthened through global competition and roll thesecapabilities out on a global level, we conduct training for theacquisition of knowledge and skills in a planned manner,
including CKPS (Calsonic Kansei Production System) training,which is the foundation for monozukuri at Calsonic Kansei,
and various specialized technology training programs.
We have also introduced a Skills Meister System to clarify
the skills required for monozukuri. We currently have nine
meisters selected not only for their skills, but also for being
recognized as model employees by everyone they work with.

Work-Life BalanceCalsonic Kansei and its Group companies in Japan are
striving to enhance their personnel and employee benefit andwelfare systems in order to enable all employees to securely
and energetically work in accordance with their current life
stage, individual situations, and sense of values.
We have made some systemic reforms designed to improve
work-life balance for our employees. For example, startingin fiscal 2016, we increased the length of vacation allowed
for honeymoons, as well as the number of paid holidays for
employees who have been with the company less than one
year. Additionally, we are continuing to take various othersteps, such as an initiative to introduce telecommuting inorder to support diverse working modes.
We are also focusing on enriching our systems of support
for childbirth, childcare, and nursing. Year after year, wehave been enhancing systems that help employees continue
working or smoothly return to work after a period of absence.
For example, we expanded employee eligibility to work

● Global Human Resource Development
For the purpose of developing the next generation of global
business leaders, each year we conduct group training in
English for leader candidates from each country and region
including Japan, and GBLT (Global Business Leader Training)with a focus on active learning.

GBLT (Global Business Leader Training)shorter hours for childcare up until the year of their child’s
elementary school graduation. Since fiscal 2016, we have
expanded eligibility for assistance for family dependents,
extended the length of childcare leave, and instituted aregular interview system to check in with employees who areon leave of absence. In May 2015, we were certified by the
Saitama Labor Bureau of the Ministry of Health, Labour andWelfare as a “Corporation Actively Involved in Supporting
Parenting,” conforming to the standards specified in the
Act on Advancement of Measures to Support Raising NextGeneration Children, and we acquired the ministry’s Kurumin
certification.
In response to Japan's aging populationand declining birthrate, we consider
measures to re-employ skilled retirees tobe an important factor in human resource
utilization.
Kurumin mark recognizing
support for the next generation
Calsonic Kansei Corporation

Sustainability Report 2016 Highlight Edition

23

Environment Conserving the Global Environment
Calsonic Kansei Group’s Approach
The Calsonic Kansei Group has set an Environmental Policy in order to establish principles for all Group activities, and basedon this policy strives to protect the global environment, which is a common challenge for all humankind.
By sharing this Environmental Policy internally, working to reduce the environmental burden through all stages of 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.

Fiscal 2015 Activity Highlights
Creating a Low-Carbon Society
Calsonic Kansei is quantitatively evaluating the direct andthe identification and improvement of items identified throughindirect environmental burden of its manufacturing operations,energy-saving diagnostic checks. Overseas, we continued

including power and fuel usage, and is implementing a Carbon

initiatives such as addressing energy-saving diagnostic items

Minimum initiative to reduce this environmental burden andin 2014.

create a low-carbon society.
In line with our CK GX4 T10 Mid-Term Management

Calsonic Kansei CO2 Emissions and CO2 Emissions per Unit

Plan running from fiscal 2011 through fiscal 2016, we have(Thousand t-CO2)

defined fiscal 2016 targets and annual milestones as part of300

our Calsonic Kansei Green Program, and the entire Group is
working toward achieving these targets.

200

34.9% in Japan and increased 64.3% overseas due to an

150

increase in production sites outside Japan. Emissions per unit
(total CO2 emissions/sales) was reduced by 29.6% in Japanand 26.1% overseas compared to fiscal 2005.
In continuation from last year, we carried out Energy Saving
Special Activities at all of our sites in Japan, which consistedof sharing examples of energy-saving improvements, and

0.240

250

Compared to fiscal 2005, CO2 emissions were reduced by(t-CO2/million yen)

0.285

0.30

0.225

0.232

193

191

192

183
80

111

111

117

0.222

0.219

198

195
124

125

0.209
198

0.20

131

0.15

100
50
0

0.25

0.10
103

2005

81

2010

82

2011

74

2012

74

2013

70

2014

67

0.05
0.00

2015 (Fiscal year)

CO2 emissions in Japan (left axis) CO2 emissions overseas (left axis)
CO2 emissions per unit (right axis)

Promoting Resource Recycling and
the Three R’s (Reduce, Reuse, and Recycle)
Through the Calsonic Kansei Green Program, we are

set a target of maintaining landfill overseas at 0.2% or lower,

focusing on resource recycling as a “3R” (Reduce, Reuse,a target we met in Japan in fiscal 2006. We met this overseas

and Recycle) initiative, while also driving waste reduction andtarget mainly by reviewing our waste sorting processes.
With environmental issues such as the global waterzero landfill initiatives.
We are conducting activities to reduce waste per unit (total

shortage, we are also working to reduce water use at all

waste/sales) in Japan by 16.4% compared to fiscal 2005, andGroup companies in Japan and overseas. We set a target

overseas by 5.0% compared to fiscal 2010, and by fiscal 2015

in fiscal 2015 to reduce water use per unit (total use/sales)

we had met both of these targets, with a 27.0% reduction in

by 2.0% compared to fiscal 2014, and we met both of these

Japan and 17.9% reduction overseas.

targets in 2015, with a 2.5% reduction in Japan and a 15.1%

For our zero landfill (total landfill/total waste) initiative, we

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Calsonic Kansei Corporation

Sustainability Report 2016 Highlight Edition

reduction overseas.

Fair Operating Practices Committed to Responsible Business Practices
Calsonic Kansei Group’s Approach
The Calsonic Kansei Group recognizes the importance of all employees practicing compliance, based on a strong 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 to strengthen the global compliance structure. In recent
years, we have been enhancing communication with business partners and driving initiatives across the entire supply chain.

Fiscal 2015 Activity Highlights
Compliance Education and AwarenessCalsonic Kansei conducts training on the Code of Conduct
every year and collects pledges in order to strengthenawareness about compliance, with 100% of our employees
in Japan and overseas signing pledges in fiscal 2015.
As part of our education on the Code of Conduct, we
also provide education as necessary on anti-monopoly law,anti-corruption law and export control regulations. In regard
to anti-monopoly law and anti-corruption law in particular,
Compliance training

we establish basic internal policies and rules, and conduct
communication and awareness activities across the entire
Calsonic Kansei Group.

Supply Chain Management
Calsonic Kansei considers its business partners to be equals,

continuing cooperation with our CSR initiatives, and theirand aims for mutual sustainable growth while maintaining

cooperation in ensuring anti-corruption and other compliance.

equal and fair relationships based on mutual trust. With theglobalization of the Calsonic Kansei Group, our supply chain
is also expanding globally. At this time, we aim to improve
our CSR management by sharing our ideas and policies withour business partners in order to promote our CSR activities.
In fiscal 2015, we developed the Calsonic Kansei CSR
Guidelines for Suppliers and rolled them out to our major
business partners. We plan to revise these guidelines infiscal 2016 in order to improve the content. We request theirFiscal 2015 policy briefing session for key business partners

Key Points in CSR Guidelines for Suppliers
1. Safety and Quality

2. Human Rights and Labor

3. Environment

4. Compliance

Providing products andservices that meet customer
needs
Providing products andservices
Ensuring quality of products
and services

Prohibiting discrimination
Respecting human rights
Prohibiting child labor
Prohibiting forced labor
Complying with wage laws andordinances
Complying with working hourlaws and ordinances
Dialogue and discussion with
employees
Ensuring a safe and healthy
working environment

Environmental management
Reducing greenhouse gas
emissions
Preventing air, water, and soil
pollution
Saving resources and reducing
wasteManaging chemical
substances
Conservation of ecosystem

Complying with laws andordinances (competition laws
and export-related laws andregulations)
Anti-corruption
Managing confidential
information
Protecting intellectual property

Calsonic Kansei Corporation

5. Information Disclosure
Disclosing information to
stakeholders

Sustainability Report 2016 Highlight Edition

25

Consumer Issues Continuing to Improve Customer Satisfaction
Calsonic Kansei Group’s Approach
The Calsonic Kansei Group is focused on quality as an essential element required to meet the expectations of a range ofcustomers, from improving performance to ensuring safety and reliability and achieving comfort. Based on 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 allprocesses, including development, design, production, and logistics. We also focus on improving our customer responsivenessthrough such activities as ongoing customer satisfaction surveys.

Fiscal 2015 Activity Highlights
Initiatives to Improve Quality and Reliability
Calsonic Kansei is taking the lead by working to improve

In addition, in order to ensure appropriate quality in thetechnological capabilities related to quality and reliability. In

field of safety, environment, and comfort technology, we have

2003, our air-conditioning business unit promptly received

reproduced market environments through state-of-the art

ISO/TS 16949 certification, a new quality standard for theequipment and experimental technologies in order to ensure a

automotive industry. By 2005, all of our Group companies hadhigh level of reliability in the three levels of vehicles, systems,

acquired this certification for all products.

and components.

Safety / Durability

Environment

Comfort

VehiclesEMC assessment

Emissions and fuel assessments

Actual vehicle environment wind tunnel test

Systems

Composite thermal impact assessment

Multi-axis vibration assessment

Wear and hammering assessment

Component and solder durability assessment

Radiator performance assessment

Auto-function assessment equipment

Components

Ongoing Customer Satisfaction Surveys
The Calsonic Kansei Group’s goal is to lead the industry

rating of 3.35 points out of a maximum of five points. We aim

through monozukuri activities in an automotive society andto use this survey as a contact point for further enhancing

to continue to provide new value in many areas. We strive tocommunication with customers and for improving customer

achieve “good monozukuri,” delivering at a high quality andsatisfaction.

appropriate price that meets the needs of our customers, while
also focusing on improving our customer responsiveness.

Customer Satisfaction
3.28

Since 2005, we have conducted a customer satisfaction
survey once a year.

Evaluation

3.05
581

The survey asks customers to apply a five-level rating
management, and sales activities (QCDDMS) along with2015, we received 711 responses and achieved an average

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Calsonic Kansei Corporation

Sustainability Report 2016 Highlight Edition

3.26
674

3.31

3.35

715

711

2014

2015 (Fiscal469

on items related to quality, cost, delivery, development,comments on specific improvement requirements. In fiscal

3.30

Number ofquestionnaires
collected

214

2010

2011

2012

2013

year)

Community Involvement and Development Creating a Better Society for Tomorrow
Calsonic Kansei Group’s Approach
From the perspective of building a sustainable society, companies must first build harmonious relationships with the various
communities with which they come into contact through their business activities. As a good corporate citizen, the Calsonic KanseiGroup is contributing to society in many ways by making use of its characteristics and know-how. This includes active participation
in local community activities and development of the next generation who will lead the future, in addition to motorsport-related
activities.

Fiscal 2015 Activity Highlights
Supporting the Next Generation who will Leadthe Future
Calsonic Kansei conducts a wide range of activities forsupporting children who will lead the future through thein-company volunteer-run Team SKETT.
With the aim of developing engineers for the future, we havebeen conducting programs for elementary school students
including opportunities to experience vehicle technology andmanufacturing, participation in Kids Engineer, a hands-on
exhibition sponsored by The Society of Automotive Engineersof Japan (JSAE), and participation in Project Supporting What

Fifth Highschool International Conference

You Want to Do, a special on-site lesson program on science.
In addition, we participate in and support Student Formula
Japan (SFJ), a competition held since 2003 under JSAE
sponsorship, and we also support the Highschool International
Conference Executive Committee, an NGO run by high school

Kids Engineer 2015

students based mainly in the Kanto region.

Environmental Communication with Locals
In November 2015, Calsonic Kansei held an Environmental

In fiscal 2015, we held a similar gathering at CKF

Communication gathering at the R&D Center andCorporation, a Group company located in Nihonmatsu,

Headquarters with the local residents’ association andFukushima Prefecture, Japan. Through ongoing environmental

people associated with the company in order to discuss its

communication like this, we hope to improve our connection

environmental activities.

and coexistence with local communities.

With 32 participants, including members of the neighboring
residents’ association, companies and local government,
we spent four and a half hours introducing examples of ourbusiness activities and efforts for the environment, and thenshowing our guests around the factory and having a freeexchange of opinions. Many of the participants expressed adesire to have closer links with our company, which showed
us the high expectations our neighbors have of us.
Environmental Communication gathering

Calsonic Kansei Corporation

Sustainability Report 2016 Highlight Edition27

Corporate Information

Global Network
Major Overseas Offices
R&D Bases

Germany

RussiaUnited Kingdom
FranceUnited States

Romania

Spain

South Korea

Japan

China
MexicoIndia
Thailand
MalaysiaBrazilMajor Overseas Offices

R&D Bases

United Kingdom

Calsonic Kansei Components

Calsonic Kansei Europe plc.

(Guangzhou) Corporation

Calsonic Kansei UK Limited

CK KS Engineering (Guangzhou) Tooling Center

Calsonic Kansei Sunderland Limited

Calsonic Kansei (Haimen) Corporation
Calsonic Kansei (Shanghai) CorporationSpain

CK Electric Machinery Development (Shanghai)

Calsonic Kansei Spain, S.A.

South Korea

RussiaDaihan Calsonic Corporation

Calsonic Kansei RUS LLC

Calsonic Kansei Korea Corporation

Romania
Calsonic Kansei Romania S.R.L.

FranceCalsonic Kansei (Thailand) Co., Ltd.

France Branch OfficeSiam Calsonic Co., Limited

Germany

India

Calsonic Kansei Europe plc.

Calsonic Kansei Motherson Auto Products

German Branch Office

Limited

China
Calsonic Kansei China Holding Company
Calsonic Kansei (Wuxi) Corporation
Calsonic Kansei (Shanghai) Automotive
Technology R&D Co., Limited

United States
Calsonic Kansei North America, Inc.

MexicoCalsonic Kansei Mexicana, S.A. de C.V.

Calsonic Kansei (Guangzhou) Corporation
Calsonic Kansei (Xiang Yang) Corporation
Calsonic Kansei Components (Wuxi) Corporation
Calsonic Kansei Corporation

Calsonic Kansei (Malaysia) Sdn. Bhd.

ThailandCalsonic Kansei Europe plc.

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MalaysiaBrazilCalsonic Kansei do Brasil Industria e Comercio Ltda.

Sustainability Report 2016 Highlight Edition

R&D bases in eight countries across theglobe, employing approximately 2,700
personnel
Establishment of centers with
development engineering functions inShanghai, China, together with CKEngineering, and in Chennai, India,
together with L&T IES.
Bases: Japan, United Kingdom, France,
United States, Mexico, India, Thailand,
ChinaNetwork in Japan
R&D Center
R&D Center, Headquarters
Testing Research Center
PlantsGroup Companies in Japan

Calsonic Kansei Iwate Corporation
Calsonic Kansei Yamagata Corporation
Calsonic Kansei Utsunomiya CorporationCKF Corporation Headquarters/Nihonmatsu Plant

Testing Research Center
Gunma Plant

CKP Corporation Tochigi Plant
CKP Corporation Headquarters/Sano Plant
CKP Corporation Itakura Plant

Kodama Plant
Production Engineering Center
Yoshimi Plant
KS Engineering Co., Ltd.

CKK Corporation Nakatsu Plant

Tokyo Radiator Mfg.
Co., Ltd.

R&D Center, Headquarters
CK Engineering Corporation
Calsonic Kansei Business Expert Corporation
CK Sales Co., LTD
Oppama Plant

CKK Corporation Headquarters/Usa Plant

Offices in Japan

Group Companies in JapanCKK CorporationCKF CorporationCKP Corporation
Calsonic Kansei Utsunomiya Corporation
Calsonic Kansei Iwate Corporation
Calsonic Kansei Yamagata Corporation
Tokyo Radiator Mfg. Co., Ltd.
KS Engineering Co., Ltd.
CK Engineering Corporation
Calsonic Kansei Business Expert Corporation

R&D Center, Headquarters

Testing Research Center

Production Engineering Center

CK Sales Co., LTD
NP Kasei Co., Ltd.
Nisshin Kogyo Co., Ltd.

PlantsGunma Plant

Iwashiro Seiki Co., Ltd.

Yoshimi Plant

Kodama Plant

Oppama Plant

Calsonic Kansei Corporation

Sustainability Report 2016 Highlight Edition

29

Company Overview (as of March 31, 2016)
Name

Calsonic Kansei Corporation

Location of headquarters

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

Major countries of business

United States, Mexico, Brazil, United Kingdom, Spain, France, Germany,
Romania, Russia, China, Malaysia, South Korea, Thailand, India

Main products

Cockpit modules, front-end modules, exhaust systems, air conditioning units,compressors, meters, radiators

Number of group companies

Consolidated: 34 companies
Equity method: 15 companies

Number of employees

Consolidated: 21,987

Major clients

AUDI AG, Daimler AG, Fuji Heavy Industries Ltd., General Motors Corporation,
Hino Motors, Ltd., Honda Motor Co., Ltd., Isuzu Motors Limited, Jaguar Land
Rover Limited, Mazda Motor Corporation, Mitsubishi Motors Corporation, Nissan
Motor Co., Ltd., Peugeot S.A., Renault S.A.S., Suzuki Motor Corporation, UD
Trucks Corporation, Volkswagen AG (Alphabetical order)

Stock listingFirst Section of the Tokyo Stock Exchange

Number of shareholders

7,201

Total assets

438.606 billion yen

Shareholder’s equity

217.890 billion yen

Major shareholders andshareholding ratios

Nissan Motor Co., Ltd.: 40.7%

Major member organizations

Japan Auto Parts Industries Association, Society of Automotive Engineers ofJapan, etc.

Our Website
In order to let a wider audience know
about our corporate activities, theCalsonic Kansei Group uses thecorporate website for information
release. Besides corporate and productinformation, the website contains a
wealth of information including financial
results, information on investor
relations, CSR-related information, andmotorsports.

Website home pagewww.calsonickansei.co.jp/english
30

Calsonic Kansei Corporation

Sustainability Report 2016 Highlight Edition

CSR-related information site

Editorial Policy

About This Report
The Calsonic Kansei Group published its first Sustainability Report in 2014, reportingon its ideas and various initiatives as a communication tool to stakeholders andas part of efforts to release information about its Corporate Social Responsibility(CSR) activities.
The Sustainability Report 2016 is the third issue of this report. In addition to taking
in reader feedback about past reports, we have referred to CSR and CSR-related
guidelines to make major changes to the composition of this medium.
This highlight edition of the report includes a selection of topics in an easy-to-readbooklet for a wide range of stakeholders, mainly including customers, business
partners, and students, with the topics reported in as simple a format as possible.
The separate full version of this report aims to provide even more information to
CSR ratings companies and specialists and other interested parties by providing
comprehensive information on CSR activities of the Calsonic Kansei Group. Witha focus on the viewpoints and concerns of these specialists, the information will

For details, please see the fullversion of the Sustainability Report
2016.

contribute towards our policy of continuous investigation.

Approvals for Various General Rules related to Environment,
Society, and Management
Calsonic Kansei is in agreement with policies such as the International Bill of Human
Rights, the Guiding Principles on Business and Human Rights, the UN Global
Compact, the Declaration on Fundamental Principles and Rights at Work, ISO
26000, and the Charter of Corporate Behavior, and implements initiatives to help
achieve these important management indexes.
Contact for inquiries regarding this report2-1917 Nisshin-cho, Kita-ku, Saitama City, Saitama 331-8501

CSR / Public Relations & IR Group
Corporate Planning Division
Calsonic Kansei Corporation
Phone: +81-(0)48-660-2161
e-mail: ckcsr@ck-mail.com

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

About the Cover Page
This time, we have revamped the design of the cover page.
We have used photographs to express the four areas important to the CalsonicKansei Group—green (environment), employees, a sustainable future (children),and monozukuri.
The simple design with a white background helps to further emphasize theimportance we place on these four areas, with the four photographs placed on theblue band signifying the Calsonic Kansei Group.

Calsonic Kansei Corporation

Sustainability Report 2016 Highlight Edition

31

R&D Center, Headquarters
2-1917 Nisshin-cho, Kita-ku, Saitama City, Saitama 331-8501
Phone: +81-(0)48-660-2161 (Corporate Planning Division)www.calsonickansei.co.jp/english