2021

Meiden Group Sustainability

CONTENTS■ Social

002

CONTENTS

003

The President s Commitment

147

Product Responsibility

005

The Meiden Group s ESG Management

160

Supply Chain Management

011

The Approach to SDGs

169

Human Rights

172

Labor Practices

188

HR Development■ Environment
020

Promotion of Strategic Environmental Management

195

Occupational Safety and Health

030

Environmental Management

216

Community

040

Product Initiatives(Expand businesses that contribute to the environment)

046

Product Initiatives(Promote environmentally conscious design)

222

Evaluations from External Bodies

231

Editorial Policy

048

Product Initiatives(Examples of Meiden Green Product Registered in FY2020)

234

GRI Standards Content Index

050

Product Initiatives(Management of chemical substances in products)

051

Climate Change

061

Disclosure based on TCFD recommendations

070

Prevention of Pollution and Eﬀective Utilization of Resources

074

Water Resources

080

Biodiversity086

Promotion of Environmental Communication

088

Foster Environmental Awareness

091

Overview of Environmental Impacts by Our Business Activities

093

Environmental Impact Data (FY2020) From the Four Main
Manufacturing Sites (Domestic Manufacturing Sites)

097

Third-Party Veriﬁcation

099

Issue of Green Bonds■ Corporate Governance106

Corporate Governance

129

Risk Management

140

Compliance2

Meiden Group Sustainability

Home Sustainability

The President’s Commitment

Sustainability

The President’s Commitment

We have been caught up in the great upheaval engulfing the world, which has been
exacerbated by the COVID-19 pandemic. As with global environmental problems, there is anincreasing number of medium to long-term issues that must be dealt with without delay. With
that in mind, since last year, we have conducted various internal discussions concerning how weshould develop our businesses as the Meiden Group.
Firstly, we aim to realize a world where people live in harmony with nature and can pursue theirown happiness. Against that backdrop, we described our ideal society using the following threepoints.
A Resilient Society Where Humans Live in Harmony with Nature
A Society that Feels Safe, Prosperous, and Exciting
A Society Where Different Communities and People Can Coexist
In order to realize this ideal society, the Meiden Group held multiple discussions about creating
long-term value, to establish “work to build a new society through integrity to the earth, society,and people, and through the power of co-creation” as our 2030 Ideal State of Being/Vision,
with an eye to the worldview of 2050.
It is essential for us to undergo a number of changes in order to achieve our Ideal State ofBeing/Vision. We are now facing the issue that society is undergoing structural changes and wemust respond to social issues as they become apparent. It is extremely important to beproactive and work together with like-minded compatriots. Therefore, I believe we should
remember the DNA of social contribution and spirit of innovation that Hosui Shigemune had
when he founded Meidensha, as well as the honesty and responsibility to customers that has
supported social infrastructure for more than 120 years since then, and take on the challengeof creating a new society by expanding and strengthening our position, in order to be an
attractive company and organization.
In order to achieve our Ideal State of Being/Vision, we have articulated our specific form androle as a “sustainability partner” for the achievement of people’s happiness and a sustainableglobal environment.
This label of “sustainability partner” has two meanings. The first is a partner as a member ofsociety to achieve a sustainable global environment, while the other is our role as a partner tosupport various stakeholders such as employees, shareholders, investors, and customers, toachieve sustainability.
3

Meiden Group Sustainability

We will contribute to the solution of our customers’ issues, support the realization of asustainable society, and fulfil our responsibility as a company that is a member of a sustainable
society. This is what we define as the role of a “sustainability partner.”
I am proud that each and every Meiden Group employee sincerely tackles the issues of ourcustomers and works with the pride that they are supporting social infrastructure andbenefiting society.
In order to realize an affluent and comfortable future society, I sincerely hope that the Meiden
Group continues to support public infrastructure in 100 or 200 years from now and daringly
accepts the challenge of creating new value, while continuing the social contribution andsincere attitude that are our corporate DNA.
Representative Director and President
Takeshi Miida

4

Meiden Group Sustainability

Home Sustainability

The Meiden Group’s ESG Management

Sustainability

The Meiden Group’s ESG Management
The Meiden Group’s Approach to ESG

Since it was founded in 1897, the Meiden Group has provided a variety of technologies,
products, and services, with a focus on electrical equipment relating to social infrastructure,
and we have contributed to the sustainable development of society by dealing sincerely andbuilding relationships of trust with our customers.
In recent years, social issues such as deterioration of the global environment, increasing
economic inequality, and lessened well-being have come to the fore around the world, as aresult of prioritizing economic growth. In addition, the business environment in which thecompany operates and the needs of the world are rapidly changing due to the progress ofglobalization and digitalization, increasing population, urbanization, and aging infrastructure, etc.
Against this backdrop, we will work with our stakeholders to embrace the challenge of realizing
a safe and vibrant society where people are in harmony with nature, in order to pave the way
for a more affluent tomorrow, while continuing to value a sincere attitude to social contribution,
which is Meidensha’s DNA.

Relationships with Stakeholders“Society” in the phrase “a Meiden Group that is integral to society” is defined as all Meiden
Group stakeholders. To be integral to society, it is necessary to meet the diverse expectationsof various stakeholders and increase the satisfaction of all stakeholders as a whole.
We seek to learn what challenges we need to address by maintaining an interactive, two-way
communication with the Meiden Group’s stakeholders. We believe that recognizing issues andtaking various measures for improvement will lead to understanding and positive evaluations
from our stakeholders.
By actively disclosing not only financial information related to laws and regulations, but also
non-financial information on environmental and social aspects, we eliminate risks that could
lead to a loss of stakeholder trust. We will remain aware of the role expected of us and strive tofulfill that role.
We aim to propose new solutions that contribute to the resolution of social issues by inputting
the needs of society gleaned through communication with stakeholders.

5

Meiden Group Sustainability

Development of the ESG Vision

Currently, the social environment, in which the Meiden Group operates, continues to undergo
drastic changes, such as the impact of accelerating climate change since the industrial
revolution, digitalization through technological innovation, and diversification of values andlifestyles of people.
In the midst of such social upheaval, we have depicted the Meiden Group’s ideal society of2030 by combining Meidensha’s DNA of “integrity,” “responsibility,” and “social contribution,”
which are our strengths, with the DNA that we must not lose of “innovative spirit” and“independence.” This ideal society is “a resilient society where humans live in harmony withnature,” “a society that feels safe, prosperous, and exciting,” and “a society where different
communities and people can coexist.” With such a mindset, the Meiden Group has set its
vision of an ideal state of being, which is to “work to build a new society through integrity to theearth, society, and people, and through the power of co-creation.”
In order to contribute to the creation of a new society through business activities we will focus
on the four areas of “renewable energy,” “sustainable infrastructure,” “green mobility,” and“smart industry,” based on the infrastructure-related technology and knowhow that we havedeveloped over many years, and the trust and results of our customers. In order to achieve thissociety, the values that must be held by everyone who works in the Meiden Group are“sustainability,” “diversity,” “integrity and responsibility,” and “future-orientation.” We will apply
6

Meiden Group Sustainability

these four values to our day-to-day activities, and under Medium-term Management Plan 2024,
which commenced in FY2021, the Meiden Group aims to take a great jump and achievesustainable corporate growth, by promoting management focused on ESG and sustainability.
The Meiden Group’s ESG Management

Sustainability Partner

We defined the term “Sustainability Partner” to specifically articulate the Meiden Group’s idealform.
A “Sustainability Partner” fulfils dual roles to realize the Meiden Group’s goals of achieving
people’s happiness and a sustainable global environment.
The first is a partner as a member of society to achieve a sustainable global environment. The
other indicates our role as a partner to accompany various stakeholders such as employees,
shareholders, investors, and customers, to achieve sustainability.
Our main contributions include contributing to carbon neutrality, which enables environmentallyconsiderate lifestyles of people and industry and another is wellbeing, the idea that focuses onbuilding a society based on people’s happiness.
Firstly, contributing to “carbon neutrality” requires supporting a carbon-free society based on
environmentally considerate products, as well as, making the Meiden Group shift toward
becoming carbon-free.
Secondly, wellbeing requires the provision of infrastructure and services for safe and secure
lifestyles, the creation of a society with a feeling of connection and diversity, and the provisionof excitement to society by the Meiden Group taking the lead in depicting a new world.
The role of a “Sustainability Partner” combines these two aspects, and fulfilling this role throughour business activities will lead to the realization of our ideal society.

7

Meiden Group Sustainability

Meiden Group ESG Management Chart

ESG Management Promotion System

Under Medium-term Management Plan 2024, which launched in April 2021, we established the
ESG Management Promotion Committee, led by the President, and the ESG Management
Promotion Office, which is mainly responsible for implementation, as a promotion frameworkthat focuses on ESG management. Currently we are performing identification and analysis of
issues, specific action plans, and KPIs, etc., and we plan to finalize and announce this in
FY2021.
The ESG Management Promotion Committee arranges organization-wide projects andcommittee activities such as the Environmental Committee, the Monozukuri & Productivity
Improvement Project, the Workstyle Reform & Corporate DX Promotion Project, the HR
Development & Diversity Promotion Project, the Strategic Innovations Acceleration Committee,
and the Governance and Engagement Team, and at monthly meetings of the ESG
Management Promotion Committee, we identify current issues and discuss and consider
responses and establishing medium to long-term KPIs, etc.
The ESG Management Promotion Office, which is the office of the ESG Management Promotion
Committee, comprises staff of divisions such as Corporate Policy Planning, HR, Legal Affairs,
Financing, PR, Overseas Business Strategic Management, Procurement, and Production
Engineering and Management, and measures that are considered and determined by the ESG
Management Promotion Committee are rolled out on a company-wide basis. At each division,
the Planning & Administration Department, and subsidiaries, the Meiden Group’s unique reform
and improvement activities based on the ESG Management Policy, known as the Meiden
Advantage Program (MAP), are incorporated as action plans, and activities are promoted
through regular follow up of promotion and results, and through the PDCA cycle, while
improving awareness of ESG management promotion throughout the Meiden Group.

8

Meiden Group Sustainability

ESG Promotion Structure

Meiden Group Initiatives for Sustainable Development Goals(SDGs)At the UN Sustainable Development Summit in 2015, the world adopted common goals known
as the Sustainable Development Goals (SDGs)*. The SDGs are challenges the international
community is addressing over the 15 years from 2016 to 2030.
The targets of the SDGs are very compatible with the ESG Vision and business activities of the
Meiden Group. They include many areas where we can contribute to a solution withtechnologies and expertise we have cultivated over the years. Thus, to really learn and takeadvantage of the opportunities and challenges presented by the SDGs, we laid out the effects
that our business activities have on the environment and society. This process considered theentire value chain and issues specific to the countries where we do business. It even included
any negative impacts of our business activities.
The Meiden Group will continue to pursue manufacturing that contributes to society, achievesustainable value creation and contribute to the solution of social issues, including those posedby the SDGs.
* Sustainable Development Goals (SDGs): Seventeen goals incorporated into the 2030 Agenda
for Sustainable Development adopted by world leaders at the United Nations Sustainable
Development Summit in September 2015. Based on these new goals—universally applied to all
nations–each nation will end all forms of poverty, combat inequality, and take steps to address
climate change while ensuring that no one is left behind over the next 15 years.
The Approach to SDGs

External Support Initiatives● CDP*1● Children’s Rights and Business Principles*2● Task Force on Climate-related Financial Disclosures (TCFD)*3● Japan Climate Initiative*4● Sustainable Development Goals (SDGs)*5
9

Meiden Group Sustainability

*1 An initiative begun by a coalition of major institutional investors around the world. It calls on
the world’s enterprises to disclose their climate change strategies (risks and opportunities) andtheir GHG emissions, among other information.
*2 These principles offer a comprehensive framework for understanding and working on theimpact that business activities have on children’s rights and happiness. They were presented by
Save the Children, the UN Global Compact, and UNICEF.
*3 An initiative established by the Financial Stability Board to encourage disclosure of
information about climate-related risks and opportunities.
*4 A network of diverse non-state actors such as corporations, municipal governments, groups,
and NGOs, that actively work to combat climate change.
*5 The SDGs were adopted at the UN summit in 2015. They are worldwide goals that identify
issues to be tackled by international society during the 15 years from 2016 to 2030.

Group Membership Credentials● KEIDANREN (Japan Business Federation)● The Japan Electrical Manufacturers' Association (JEMA)● The Institute of Electrical Engineers of Japan (IEEJ)● Electric Technology Research Association● The Japan Electric Association● The Japan Society of Mechanical Engineers

10

Meiden Group Sustainability

Home Sustainability

The Approach to SDGs

Sustainability

The Approach to SDGs
Meiden Group Initiatives for Sustainable Development Goals(SDGs)At the UN Sustainable Development Summit in 2015, the world adopted common goals known
as the Sustainable Development Goals (SDGs)*. The SDGs are challenges the international
community is addressing over the 15 years from 2016 to 2030.
The targets of the SDGs are very compatible with the Meiden Group’s ESG Vision and businessactivities. They include many areas where we can contribute to a solution with technologies andexpertise we have cultivated over the years. Thus, to really learn and take advantage of theopportunities and challenges presented by the SDGs, we laid out the effects that our businessactivities have on the environment and society. This process considered the entire value chain
and issues specific to the countries where we do business. It even included any negative
impacts of our business activities.
The Meiden Group will continue to pursue manufacturing excellence that benefits society,create value, and help solve social issues that include those addressed by the SDGs.
* Sustainable Development Goals (SDGs): Seventeen goals incorporated into the 2030 Agenda
for Sustainable Development adopted by world leaders at the United Nations Sustainable
Development Summit in September 2015. Based on these new goals—universally applied to all
nations–each nation will end all forms of poverty, combat inequality, and take steps to address
climate change while ensuring that no one is left behind over the next 15 years.

Status of SDG initiatives
Understanding of SDGs
FY2018• Organize impact areas in countries where
we conduct business and business activities• Arrange related initiatives in accordancewith each SDG• Conduct training for management

Identifying Priority Issues
FY2019• Consideration of the connections between
business activities and SDGs; establishingareas that contribute to the solution of social
issues through our business strategies

11

Meiden Group Sustainability

Education for Application of SDGs in Business Strategy andActivities

In FY2018, we invited outside instructors to give seminars about
SDGs (Sustainable Development Goals) for management. In
FY2019, we conducted e-learning for all Meiden Group
employees (including directors and executive officers), for the
purpose of ensuring that all employees understand SDGs andpromoting the spread of environmental projects and newtechnology and new service proposals as the Company’s
Training for management
initiatives.
In addition, at selective training that commenced in FY2019 for conducted in fiscal 2018
the purpose of developing young employees into the next
generation of managers, we consider social issues such as SDGs,
establish programs to create business strategies, and approachcontribution to the solution of social issues and share ideas toincorporate SDGs in management and individual duties, throughbusiness strategies that are not swayed by past business.

The Meiden Group’s Approach to SDGs

As a heavy electric equipment manufacturer supporting the future of social infrastructure, theevolution of industry, and achieving sustainable growth and development, the Meiden Group
contributes to the Seventeen goals of the SDGs through all business activities. Furthermore, inorder to continue contributing to the SDGs in the future, it is necessary to seriously address
the expectations of society and accurately grasp key social issues as important issues for theCompany. To do this, we have established areas that contribute to solving social issues throughbusiness strategies.
The Meiden Group will continue to actively challenge itself to create new technologies and newvalue, in order to contribute to the realization of a vibrant and comfortable future society.

12

Meiden Group Sustainability

Goal

Relevance Major Business Activities Contributing to Solution★
・T&D business and railway system business in Southeast Asia
(Thailand, Indonesia, etc.): Through these businesses, we
contribute to the development of the rail and T&D industries,
increase access to railroads for the impoverished, and help build
resilience★★★
・Workplace safety and health: We actively work to prevent
workplace accidents and harm to health, for example by offering
hands-on safety experience training (to increase sensitivity tohazards) using VR technology within and beyond the Group・We promote management of chemical substances, including at
suppliers
・Automobile testing equipment: We contribute to the spread ofnext-generation automobiles such as electrified vehicles for the
global environment, safety measures, and ensuring freedom of
13

Meiden Group Sustainability

★★

★★★

★★★

★★★

movement for all people
・Electric power/energy: We contribute to electric power supply
stability with, for example, cogeneration systems for medical
facilities
・Water treatment systems: We provide clean water with ourwater treatment plants and contribute to water pollution
prevention with our sewage treatment plants
・We contribute to limiting the spread of infectious diseases
through research and development of a real-time sewer
monitoring system to realize a society that is resilient to infectious
diseases using manhole antennas
・We create positive working environments through considerationof human rights and labor (including fair and equitable
employment and respect for diversity) and workforce training
・By donating school facilities (Thailand) and endowing courses(Thailand and India), we help create educational opportunities foryoung people
・We hold “manufacturing workshops” and science teachingsessions, and support education with internships for university
and technical college students
・We create positive working environments by considering humanrights and labor (including practicing fair employment, honoring
diversity, and giving training on human rights and diversity)
・We promote consideration for human rights and labor at
suppliers by practicing CSR procurement
・We contribute to safe water supplies by providing one-stop
service for water supply and wastewater infrastructure, fromequipment manufacturing to maintenance, inspection,
maintenance management, and operation management. Specificexamples include the power receiving and substation facility andmonitoring and control systems essential to water supply andwastewater infrastructure, cloud services to support operation
management, and flat-sheet ceramic membranes with outstanding
filtering performance
・We help solve the variety of social challenges facing local
governments in Japan, such as population declines and aging
facilities, by developing public-private partnership projects andone-stop services in the water treatment business・We help ensure the stable supply of electric power by
manufacturing, marketing, and providing equipment for
emergency and non-emergency power generation, hydroelectric
power generation, power transmission, conversion, anddistribution and by providing energy solution services such as
smart grids
14

Meiden Group Sustainability

★★★

★★★

・We help build a carbon-free society by manufacturing, selling,and supplying power generation systems for renewable energy
sources like solar power and small-to-medium size hydro power
・We contribute to the supply of renewable energy and stable
operation through the sale of wind power and the support of wind
power O&M
・We contribute to the electrification of automobiles by
manufacturing and selling motors and inverters for electric
forklifts, PHEVs, and EVs
・We achieve energy conservation by providing energy-recovering
water treatment using anammox and community-based water
treatment systems (developing new aeration air flow rate control)
・We contribute to the reduction of water treatment facility
maintenance costs, energy-saving measures, and carbon
reduction by participating in demonstration experiments for smart
operation of water treatment equipment using ICT and AI
・We practice work style reform and make work more efficient byimplementing RPA*1
・東We give locally-hired staff in Southeast Asia training inspecialized technologies like design, construction, andmaintenance (including quality control and safety management) toimprove comprehensive engineering and support infrastructures
around the world with high-quality engineering services
・We contribute to a stable supply of electric power bydeveloping, marketing, and providing energy solution services
such as smart grids
・With the online smart diagnostic service using IoT, we canprovide appropriate maintenance of social infrastructures and theprevention of serious failures such as power outages
・We help achieve leading-edge technology and contribute to thedevelopment of a prosperous society through technologicalinnovation in semiconductor and FPD manufacturing equipment
components (vacuum capacitors, industrial controllers, pulse
power supplies, etc.)
・We contribute to comfortable water treatment and stabilizationof industrial infrastructure with drainage solutions using methods
such as water treatment systems and flat-sheet ceramic
membranes
・We contribute to technological innovation in the automobile
industry, by developing and selling EV drive components, as wellas test devices for automobile research institutes, universities,
and manufacturers of automobiles and auto components
・We help increase industrial productivity and reduce laborburdens in all industries, including manufacturing, through laborsaving, space-saving, and efficiency improvements in factorytransport using automated guided vehicles (AGV).
15

Meiden Group Sustainability

★★★

★★★

★★★

・We contribute to technological innovation in the semiconductor,
film, and other industries, by establishing room-temperaturedeposition technology through OER technology*2 using pureozone
・We employ fair employment practices and respect diversity
・Aiming to realize respect for human rights, the Meiden Group
undertakes human rights awareness initiatives throughout theorganization
・We appoint local staff to management positions at overseas
affiliates
・We communicate the principles of CSR (including human rights
and labor) and the Meiden Group’s CSR approach to our business
partners and conduct supplier evaluations
・We promote urban development and help to alleviate traffic
congestion through railroad projects such as KVMRT*3 in
Malaysia and MRT*4 in Singapore
・We contribute to the construction of transportation
infrastructure using overhead contact line inspection equipment
and feeder equipment for electric railways
・We prevent equipment breakdown by diagnosing the early signsof irregularities in large motors, generators, transformers, andswitchgears and make optimal equipment upgrades
・Our elevator hoisting machines and inverters for higher-risecities and barrier-free support (home elevators), and elevator ropetesters reduce inspection time and improve efficiency
・We help make communities resilient to disaster with mobile
power supply cars, building power generators, and otheremergency power generation equipment
・We provide sustainable, inexpensive, and good services forwaterworks through public-private partnerships
・We promote eco-friendly design by making products smaller
and more efficient, controlling chemical content, practicing life
cycle assessment (LCA), etc.
・Through CSR procurement, we promote the management ofchemical substances, consideration for reducing environmental
impact, and response to conflict minerals issues at suppliers
・By implementing a range of initiatives to improve product andservice quality, we improve our development and design quality,
preventing defects, rework prevention, quality control technology
training, and more
・We provide 24-hour support of customer equipment operation(troubleshooting, responding to inquiries, remote monitoring
service)・We develop our workforce to support the provision of highquality products
16

Meiden Group Sustainability

★★★

★★

★

★★

・We contribute to reduced waste and resource usage byrecycling used epoxy resin molded components at MEIDENCHEMICAL CO., LTD. using the room temperature dissolution
method・We help to build a carbon-free society through our renewableenergy-related business・We provide eco-friendly products andB39:G49
・We installed a solar power generation system at one of ourmajor manufacturing sites (Numazu Works)・Through CSR procurement, we promote the reduction of GHG
emissions at our suppliers
・We help build disaster prevention platforms for local
governments and support disaster prevention through our urban
flooding monitoring service (flash flood countermeasures using
manhole antennas)
・We promote the spread of renewable energy through the wind
power business of M WINDS Co., Ltd. (power generation, powersales, and maintenance)
・We contribute to the reduction of greenhouse gas emissions
through the development and sale of SF6 gas-free vacuum circuit
breakers
・We contribute to the reduction of greenhouse gas emissions
through the development of gas-insulated switchgear (GIS) thatuses naturally-derived gas
・We help prevent marine pollution with ceramic flat-sheet
membranes for advanced wastewater treatment
・Water treatment systems: We provide clean water with ourwater treatment plants and prevent water pollution with ourwastewater treatment plants
・We conduct aquatic organism impact studies in rivers where
sewage treatment water is discharged
・We make effective use of the sludge generated at water
treatment plants
・We reduce the use of printing paper and ink by implementing
managed print services (e.g., increasing the number ofmultifunction printers)・Through consideration for human rights and labor (prohibiting
child labor, prohibiting practices such as corruption and bribery,and providing compliance training), we create a comfortable,
positive workplace
・We communicate the principles of CSR (including prohibitions
on child labor, corruption, bribery, and other acts) and the Meiden
Group’s CSR approach to our business partners and conduct
supplier evaluations
17

Meiden Group Sustainability★★

・We support the infrastructure development of developing
nations by delivering equipment through Official Development
Assistance (ODA)・We promote partnerships with local businesses in Southeast
Asia (T&D business, switchgear business, etc.)
・We expand public-private projects by building partnerships withother industry sectors in the water treatment field・We provide sustained water supply service that is both goodand inexpensive through public-private partnerships
・We contributed to the realization a safe and secure watersupply through comprehensive operations in waterworks byestablishing the Gunma Tobu Suido Kigyodan (an amalgamation ofseveral local water services in Eastern Gunma Prefecture)
・In the mobility T&S business, we contribute to the developmentof next-generation mobility in conjunction with the German
company, FEV
・We contribute to the improvement of quality and maximizationof added value throughout product lifecycles, through theaddition of motor analysis and remote monitoring technology to
our motor business in conjunction with Polish company, Elmodis
SP. Z o. o.

*1 RPA (robotic process automation): The use of robots to make work more efficient.
Programming robots to do white color work and other tasks that humans have always done
helps to automate typical, repetitive tasks. By teaching robots a set of rules, it is possible forthem to do work that includes decision-making based on certain standards. Software robots
are being used to automate typical PC operation without changing existing systems.
*2 OER technology: A proprietary Meiden technology that produces hydroxyl (OH) radicals atroom temperature by causing a reaction between high purity ozone and ethylene gas.
*3 KVMRT (Klang Valley Mass Rapid Transit): This urban transit system travels east to west for
51 km across the capital, Kuala Lumpur.
*4 Singapore MRT (Mass Rapid Transit) : Singapore's Mass Rapid Transport System

18

Meiden Group Sustainability

Home Sustainability

Environment

Sustainability

Environment
Promotion of Strategic Environmental
Management

Environmental Management

Product Initiatives (Expand businesses
that contribute to the environment)

Product Initiatives (Promote
Environmentally Conscious Design)

Product Initiatives (Examples of
Meiden Green Product Registered in
FY2020)

Product Initiatives (Management ofchemical substances in products)

Climate Change

Disclosure based on TCFD
recommendations

Prevention of Pollution and Effective
Utilization of Resources

Water Resources

Biodiversity

Promotion of Environmental
Communication

Foster Environmental AwarenessOverview of Environmental Impacts by
Our Business Activities

Environmental Impact Data (FY2020)
From the Four Main Manufacturing
Sites (Domestic Manufacturing Sites)

Third-Party Verification

Issue of Green Bonds
19

Meiden Group Sustainability

Home Sustainability

Environment

Promotion of Strategic Environmental Management

Environment

Promotion of Strategic ESG Management
PolicyThe Meiden Group ensures that each employee contributes to the protection of the global
environment and the creation of a prosperous society through their day-to-day work according
to our Basic Environmental Philosophy, and promotes ESG management to achieve sustainablegrowth of society and increased corporate value.

Basic Environmental Philosophy

The Meiden Group aims to engage in ESG management and achieve corporate growth basedon the corporate philosophies of “Illuminating a more affluent tomorrow” and “For customer
peace of mind and satisfaction” by tackling the issues of adapting to and mitigating climatechange, recycling resources, and preserving biodiversity, in order to realize a sustainable
society.

Environmental Policies

1. We promote the development of new products and innovative technologies that contributeto the global environment and strive to develop and design environmentally conscious products
by conducting environmental impact evaluation for the product's lifecycle, from initial material
procurement to final disposal.
2. We strive:- To reduce the environmental impacts from our business activities at home and abroad- To reduce greenhouse gas emissions- To promote the 3Rs (reduce, reuse and recycle)- To reduce the releasing amount of hazardous substances that are harmful to humans and theenvironment
3. We strive to comply with the related environmental laws, regulations, rules and otherrequired matters and establish our internal guidelines. We strive to prevent the pollutions fromour operations at home and abroad and make efforts to protect the environment.
4. After establishing an ESG management system, we strive to maintain and improve it throughthe PDCA (Plan-Do-Check-Act) Cycle and we aim to improve our environmental performance.
5. We strive to improve all our employees’ understanding of ESG management and invigorate
environmental contribution activities through environmental education.
6th Edition, April 1, 2021
President of Meidensha Corporation

20

Meiden Group Sustainability

Environmental Vision

The Meiden Group will “contribute to the creation of a sustainable society” through its
businesses in the energy which support social infrastructure and water treatment, as well as its
products, technologies, and services, which it has developed up to this point, while minimizing
the environmental impact of its business activities.
The Environmental Vision identifies realizing “a carbon-free society,” “a circulating society,” and“a society in harmony with nature” as the missions of a 21st-century company, and lists themas goals. We are working to conduct ESG management with “human resources andcommunication” at its core.
Outline of the Environmental Vision

Activities to Realize Our Environmental Vision

A. Working Toward the Realization of a Carbon-free Society<Reducing greenhouse gas emissions>
Reduce greenhouse gas emissions from business activities
Contribute to customers’ efforts to become carbon-free through our products and services

21

Meiden Group Sustainability

B. Working Toward the Realization of a Recycling Society<Promoting the 3Rs>
Promote re-use of resources and water in business activities
Contribute to construction of sustainable infrastructure through business

C. Working Toward the Realization of a Society in Harmony with Nature<Conservation of natural resources>
Use land in an environmentally considerate manner, minimize impact on ecosystems, andpreserve biodiversity
Prevent contamination by harmful chemicals and ensure water safety

D. HR and Communication<Professional development and communication>
Improve environmental literacy to promote research, development, and manufacturing
Ensure two-way communication and collaboration with stakeholders
Strategy

The Meiden Group’s Medium to Long-term Environmental Targets

FY2030 Greenhouse Gas Emissions Reduction Targets (Second Meiden Environmental
Vision)In consideration of stepping toward accelerating becoming a carbon-neutral society by 2050,
the Meiden Group has upwardly revised its FY2030 greenhouse gas emission reduction targets,
which is an intermediate stage of it. As the Second Meiden Environmental Vision, we aim for a
30% reduction of emissions from business activities (scope 1+2), and a 15% reduction ofemissions from product use (scope 3, category 11) by FY2030 compared to FY2019 levels.
These targets received SBT certification as they were recognized by the Science Based Targets(SBT) initiative*1 as being consistent with the Paris Agreement*2.
FY2030 greenhouse gas
First Meiden
Second Meiden
emissions reduction targets
Environmental Vision Environmental Vision(Released in May 2018) (From April 2021)
Emissions from business activities 30% reduction (compared 30% reduction (compared(scope 1+2)
to FY2017)
to FY2019)
Emissions from product use (scope NA
15% reduction (compared3, category 11)
to FY2019)22

Meiden Group Sustainability

*1 SBT Initiative: An international initiative by the United Nations Global Compact (UNGC), theWorldwide Fund for Nature (WWF), the CDP, and the World Resources Institute (WRI).
*2 Paris Agreement: An international framework “to limit average global temperature rise to
below 2°C compared to pre-industrial levels and to strive to limit it to 1.5°C,” which was adopted
at COP21 in 2015.
SBT certification（PDF:132KB）
To attain these targets, we joined the Ministry of the Environment’s “FY2020 project to supportmodel businesses in compiling a plan to reduce CO2 emissions toward realizing SBTs.” With that
support, Meiden has compiled the FY2021 version of the Meiden Group’s plan to reducegreenhouse gas emissions toward attaining SBTs. This plan outlines initial ideas for an
implementation plan and specific reduction measures to implement long-term reduction
measures by the target year stated in the Second Meiden Environmental Vision. We will revise
and optimize it as appropriate.
Main Measures to Cut Greenhouse Gas Emissions

FY2030 greenhouse gas Reduction measures (extract)emissions reduction
targets
Emissions from
Replacing SF6 gas (replacing with dry air, etc.)
business activities
Capital investment (replacing aging equipment, introducing(scope 1+2)
high-efficiency equipment, replacing gas with electricity, etc.)
30% reduction(compared to FY2019) Renewable energy procurement (non-fossil fuel certificate,
power menu, etc.)
Switching company-owned cars to electric vehicles
Emissions from product Eco-friendly product design (eliminating use of SF6 gas, anduse (scope 3, category downsizing products and making them more efficient)
11)
Revising business portfolio (increasing ratio of low carbon
15% reduction
emissions per unit of sales such as EV, maintenance services(compared to FY2019) and small and medium-sized hydropower generation)
Overall
Generating innovation
Introducing internal carbon pricing
23

Meiden Group Sustainability

In particular, we will increase the ratio in our overall sales of our low-carbon businesses with low
emissions per unit of sale, including EV-related products and maintenance services, for which
demand is expected to grow, in order to reduce greenhouse gas emissions after products areused by our customers (scope 3, category 11). By making our business portfolio low carbon
through these measures, we will pursue both increased sales and reduced emissions.
*3 FY2020 pilot project to support companies in compiling a plan to reduce CO2 emissions
toward realizing SBTs: A public project by the Ministry of the Environment for the purpose ofpromoting specific reductions to achieve companies’ medium to long-term goals. In FY2020,
Tokyu Fudosan Holdings Corporation, Nissin Foods Holdings Co., Ltd., FamilyMart Co., Ltd.,Benesse Corporation and MEIDENSHA CORPORATION were selected for the project.
TOPICS
Simulation of Business Portfolio RevisionDuring the formulation of the Meiden Group’s FY2030 greenhouse gas emissions
reduction targets, we conducted a simulation of net sales and emissions from abusiness portfolio revision regarding the product use stage (scope 3, category 11).

Meiden Group Scope 3, Category 11 Reduction Simulation<Note: The above graph is an estimate from a simulation and does not amount to acommitment to a business plan>
We found that by increasing the ratio of low carbon businesses with low emissions
per unit of sales such as EV, maintenance services, and small and medium-sizedhydropower generation, and we had a potential to comfortably achieve bothincreased sales and reduced emissions.

24

Meiden Group Sustainability

TOPICS
Introducing Internal Carbon Pricing
Internal carbon pricing is a mechanism that creates an economic incentive to
reduce emissions and promotes investment by setting a carbon price in thecompany and using it to calculate the cost of greenhouse gas emissions.
Meidensha introduced an internal carbon pricing system in April 2021. We will
convert carbon emissions from capital investment plans to expenses using aninternal carbon price through the system. It will be a tool to make investment
decisions. For now, we will make ad-hoc reforms starting from the following
conditions.
Internal carbon price: 3,000 yen/t- CO2 (be amended at any time in the future)
Subject to application: Capital proposals for FY2021 onwards (for the time being,
the system will be used for visualization, and will not incur any actual cost)

Promotion of Ongoing Activities

We have developed an action plan for each Medium-term Management Plan and we arecontinuously working to conduct reforms in order to realize the environmental vision.

25

Meiden Group Sustainability

Deployment to Action Plans

26

Meiden Group Sustainability

Results Data

FY2020 Environmental Targets and Results

Targets and level of achievement for FY2020, which is the final year of Medium-termManagement Plan 2020, are as follows.
In FY2020, we achieved our targets at only one site as we strictly revised recycling standards inour zero emissions targets. Going forward, new measures will be considered depending on thelevel of achievement of targets, which ties into future planning.
Please refer to the corresponding page for details of each item.
Achievement of FY2020 Environmental Targets
Rating: ☆☆☆ = target achieved, ☆☆ = improvement over previous year, ☆ = work in progress
Strategic
Actions
FY2020 Environmental FY2020 Results Rating
Targets
Targets (Japan)
Contribute to Promote
Contribute a 900,000
989,000 t－☆☆☆
environment environmentally t/year reduction in CO2 CO2/year
throughemissions by
conscious
products and design
Environment-Contributing
Businesses
services
Reduction in emissions Reduction in☆☆☆
over the lifecycle of new lifecycle
productsemissions of 20
new products (of39)
Reduce the
Total emissions (Scope –22％ (compared ☆☆☆
Reduceenvironmental greenhouse gas 1+2): –4 % (compared to to FY2017)
impact ofemissions
FY2017)business
Manage
VOC emissions: 80 tons 75.1 tons☆☆☆
operations
chemicalsor less
properly
Promote the Total wastes: –3%-7.2％ (compared ☆☆☆
3Rs(compared to FY2017) *3 to FY2017)
Zero waste emissions*1 at Achieved at 1 site ☆
9 sites*2
Conserve water Implementation of water Construction for ☆☆☆
resources
conservation activities and water supply andrisk countermeasures: 4 drainage
rationalization,
main manufacturing
sites*3and leakage
investigation andrepair27

Meiden Group Sustainability

Strategic
Targets

Actions
Conserve
biodiversity

FY2020 Environmental
Targets (Japan)
Conservation of
ecosystems: 4 main
manufacturing sites*3

FY2020 Results Rating
Red pine☆☆☆
conservation
activities, treeplanting activities,
education
activities
89％☆☆

PromoteStrengthen
Green procurement rateenvironmental value chain(own standards): 90% ormanagement management greater*1 Meiden Group’s definition of zero waste emissions: To achieve a recycling rate of 99.0% ormore of the total volume of waste generated. (including industrial waste, general waste, andvaluable resources, excluding construction sludge, etc.).
*2 Scope of zero waste emissions initiatives: manufacturing sites in Japan (Numazu Works, Ota
Works, Nagoya Works, KOFU MEIDENSHA ELECTRIC MFG. CO., LTD., MEIDEN CHEMICAL CO.,LTD. (Sagami Works), HOKUTO DENKO CORPORATION (Atsugi Works)), Engineering Service
Business Units and two Construction Service Business Units*3 Four main manufacturing sites: Numazu Works, Ota Works, Nagoya Works, and KOFU
MEIDENSHA ELECTRIC MFG. CO., LTD.
Targets

FY2021 Environmental Targets

At the Meiden Group, we formulated Medium-term Management Plan 2024 to cover the four
years from fiscal 2021 and we are working to implement ESG management.
In particular, we have developed greenhouse gas emissions reduction targets for the next four
years by back-casting based on the fiscal 2030 greenhouse gas emissions reduction targets in
the Second Meiden Environmental Vision.
The environmental targets for FY2021, the first year the project, are as follows. For the targetof zero waste emissions, we are changing the standard to a final disposal rate of less than
1.0%.

28

Meiden Group Sustainability

FY2021 Environmental Targets
Strategic
Actions
Targets
Contribute to Promote
environment environmentally
throughconscious design
products andservices

FY2021 Environmental Targets (Japan)

Contribute a 950,000 t－CO2/year reduction in
CO2 emissions by Environment-Contributing
Businesses
Build a foundation for scope 3, category 11
reductions (investigate and calculate for main
businesses)
Reduce theReduce greenhouse Japan: Total emissions (scope 1+2): –3%
environmental gas emissions(compared to FY2019)
impact ofOverseas: Total emissions (scope 1+2): -1%
business(compared to FY2019)
operations
Manage chemicals VOC emissions: 80 tons or lessproperly
Promote the 3Rs Total waste: –4% (compared to FY2017)*3
Zero waste emissions*1 at 9 sites*2
Conserve water
Implementation of water conservation activities
resources
and risk countermeasures *3
Conserve
Conservation of ecosystems: 4 main
biodiversity
manufacturing sites*3
PromoteStrengthen value Green procurement rate (own standards): 90% orenvironmental chain management greater
management*1 Meiden Group’s definition of zero waste emissions: To achieve a non-recycling rate of lessthan 1.0% of the total volume of waste generated (including industrial waste, general waste,
and valuable resources, excluding construction sludge, etc.).
*2 Scope of zero waste emissions initiatives: manufacturing sites in Japan (Numazu Works, Ota
Works, Nagoya Works, KOFU MEIDENSHA ELECTRIC MFG. CO., LTD., MEIDEN CHEMICAL CO.,LTD. (Sagami Works), HOKUTO DENKO CORPORATION (Atsugi Works)), Engineering Service
Business Units and two Construction Service Business Units*3 Four main manufacturing sites: Numazu Works, Ota Works, Nagoya Works, and KOFU
MEIDENSHA ELECTRIC MFG. CO., LTD.

29

Meiden Group Sustainability

Home Sustainability

Environment

Environmental Management

Environment

Environmental Management
PolicyThe Meiden Group is promoting environmental management that brings together businessstrategy and environmental activities.
We continually improve our environmental management system as we evaluate its validity andeffectiveness.
Organization

Environmental Management Promotion Organization

Under the leadership of the President, who is our chief executive officer, the executive officer(environment) oversees the environment management of the Meiden Group overall, while thegeneral manager (GM) in charge of EMS works to maintain and improve the environmental
management system (EMS).
In addition, our Group-Wide internal environmental audit team, an independent organization,
audits environmental management initiatives, legal compliance, EMS effectiveness, and more,
and offers ideas for improvement.
The executive officer (environment) chairs the Meiden Group Environmental Committee(MGEC), our highest decision-making body for environmental initiatives. The MGEC identifies
issues to address, including risks relating to climate change and the like, sets environmental
targets and formulates action plans, conducts management reviews, responds to emergency
situations, reviews and reports on environmental measures and working groups (WGs), and sets
environmental management policy directions.
For the most important issues, the executive officer (environment) and GM in charge of EMS
consult with the executive committee, Board of Directors, and the like and then acts as decided
by top management.

30

Meiden Group Sustainability

Meiden Group Environmental Management Promotion Organization

31

Meiden Group Sustainability

Responding to Environmental Risks and Opportunities
Phenomena (issues) related toCarrying out
Risks
Opportunities
environment
initiatives
Government
2050 carbon Short-term cost Growth of new Expand(political)
marketsincreases
products’neutrality
Laws andcontribution toRegulations declaration
Rising cost ofMarkets for
Deregulationenergyproducts and the environmenof electricincreases ourservices
Expand sales
power industry, costs
related toof products
revision of(procurement,
renewable
related to
power supply
shipping,
energy andrenewable
structure
manufacturing, energy
energy andconservation
scrapping,etc.)
energyFlow ofconservation
directly andare growing.
processes to(wind,
indirectly.
implement
Differentiationhydroelectric,carbon pricing Decline ofwithand solar
Energyproduct
environmentallypower
conservation competitiveness conscious
equipment,
regulations &products
EV/PHEV
It will get
standards
electric
harder to sellBeing among(business
equipment,
products thatthe first tooperations,do not meetbring products transformers,
products)
motors,that meet
Amendment of environmental
inverters, etc.)
regulations and regulations,Hazardous
standards.
etc., to market Develop
Chemicals
and offering
environmentally
We might lose
Regulations
lowconscious
share if we
environmental
products,
Economymeet
Expanded ESG cannot
impactimplement new
the needs of ainvestment
products
andtechnologies
market looking
servicesmake(which are
Price
for
more compact,competition
environmentally us morecompetitive.
lightweight,(low cost,
conscious
efficient,premium
products.
Better businessenergypricing)performance
Decline ofconserving,
Extendedthrough
corporate valueetc.)
pandemic
environmental
responsemanagement
Our image,Diversify
evaluations
financial assets
Byrunning(credit ratings,etc.), and share businesses
32

Meiden Group Sustainability

Phenomena (issues) related to
Risks
Opportunities
environment
prices willthat help solve
Societydecline if ourenvironmental
Spread ofbusiness is not issues, we canresponsibility
seen asenhance ourto entire value
environmentally corporate
chain
value and(upstream and conscious.
downstream) Increase of local businessperformance.
Improvement disastersof employment
Responding to
Flooding and/ laborother disasters natural
conditions
disasters
canstop
New normal
operations and Demand for(after corona)
cut the supply
flood control
chain.
and disasterTechnology
Enhancedprevention andefficiency of
response (e.g.,
electric power
securing theconversion
power supply)is rising.
Promote digitaltransformation
Developmentof new energy/ alternative
energytechnology
Reputation /Demand for
Needs
information
disclosure(accountability)
Lifestylechanges(ecologyoriented)

Carrying out
initiatives
Issue green
bonds, etc.
Reduce theenvironmental
impact ofbusiness
operations

Promoteenergyconservation(capital
investment,
visualization,
etc.)
Promote theintroduction ofrenewableenergyPromote the
3Rs, andeliminate
harmfulchemicals
Maintain water
resources, andconsiderbiodiversity
Improvebusiness
efficiency

Promote Smart
Work, workfrom home,
web meetings,
etc.
Promoteenvironmental
management

Promotebusiness risk
33

Meiden Group Sustainability

Phenomena (issues) related toenvironment
NaturalEnvironment Changes oftemperatureandprecipitation
volumeIncrease of
local disasters(sudden
downpours,
tornadoes,
etc.)
Ecosystem
irregularities(increase oforganisms thatcarry
infectious
disease)

Risks

Opportunities

Carrying out
initiatives
management
Strengthen
value chain
management
Practiceenvironmental
communication(information
disclosure, etc.)
Deployinfrastructuresupport
products during
disaster

Emergency
power supply
equipment,
mobile power
supply cars,
UPSs, remotemonitoring
systems, etc.

34

Meiden Group Sustainability

ISO 14001 Certification Status (as of March 31, 2021)

We are expanding the scope of bodies certified under ISO 14001, the international standard
for environmental management systems. In Japan, Meidensha and 17 affiliated companies havefinished earning certification. Overseas, 11 companies, mainly manufacturing sites, havefinished earning certification.
Certification Status in Japan
Company NameMEIDENSHA CORPORATION*MEIDEN SHOJI CO., LTD.
KOFU MEIDENSHA ELECTRIC MFG. CO., LTD.*
MEIDEN SYSTEM MANUFACTURING CORPORATION*MEIDEN KIDEN KOGYO CO., LTD.*
MEIDEN KOHSAN CO., LTD.
MEIDEN SYSTEM SOLUTIONS CORPORATIONMEIDEN PLANT SYSTEMS CORPORATION*
M WINDS CO., LTD.
MEIDEN UNIVERSAL SERVICE LTD.
MEIDEN AQUA BUSINESS COMPANY
MEIDEN TECHNO SYSTEMS CO., LTD.*
MEIDEN MASTER PARTNERS CORPORATIONMEIDEN O&M CORPORATIONMEIDEN ENGINEERING CORPORATIONMEIDEN CHEMICAL CO., LTD.*
MEIDEN FACILITY SERVICE CORPORATIONHOKUTO DENKO CORPORATION*
EAML Engineering CO., LTD.** Companies with manufacturing plants

35

Date of Certification Acquisition
February 24, 1998

July 31, 2003
November 20, 2012
November 18, 2015
October 3, 2013
March 5, 2004

Meiden Group Sustainability

Certification Status Overseas
Company Name
Area
Date of Certification Acquisition
MEIDEN ZHENGZHOU
Zhengzhou, October 9, 2013
China
ELECTRIC CO., LTD.*
MEIDEN HANGZHOU DRIVE
Hangzhou, April 7, 2008
China
SYSTEMS CO., LTD.*
SHANGHAI MEIDENSHA
Shanghai, SHANGHAI MEIDENSHA CHANGCHENG
CHANGCHENG SWITCHGEAR China
SWITCHGEAR CO., LTD.* Shanghai, China
CO., LTD.*
January 11, 2016
P.T. MEIDEN ENGINEERING
Indonesia December 19, 2018
INDONESIAMEIDEN MALAYSIA SDN. BHD. Malaysia October 10, 2018
MEIDEN METAL ENGINEERING Malaysia October 9, 2014
SDN.BHD. ※MEIDEN SINGAPORE PTE. LTD. Singapore February 8, 2010※
THAI MEIDENSHA CO., LTD.
Thailand July 1, 2009
MEIDEN
Thailand September 30, 2013
ELECTRIC(THAILAND)LTD. ※TRIDELTA MEIDENSHA GmbH. Germany July 13, 2015※
PRIME MEIDEN LTD. ※India
January 26, 2015
* Company with manufacturing plants

36

Meiden Group Sustainability

Percentage of Companies Certified in Japan/Overseas

Number of certified companies in Japan

Number of certified companies overseas

Initiatives

Internal Environmental Audits

We conduct internal environmental audits separate from the external audits we get from ISO
14001 registrars. Internal audits confirm the state of improvement on concerns pointed out inexternal audits and check up on audit items that are marked as priorities for that fiscal year.
We conducted specialized waste-recycling audits at overseas sites, actively utilizing remote
auditing as a measure to combat the COVID-19 pandemic.
In FY2020, our audits prioritized formulating plans for energy-saving initiatives, performing
checks of compliance activities, improving human resources, legal requirements (expanded
electronic manifests for industrial waste), etc. We determined that, overall, the Group was
conforming to ISO 14001:2015 requirements and functioning effectively. If any concerns arepointed out during internal environmental audits, we take them as an opportunity for
improvement and incorporate them into further improvement initiatives.

Environmental Information Management System

The Meiden Group uses an “environmental information management system” that we put inplace to manage and analyze environmental impact in our business activities. The systemcollects and centrally manages information on environmental impact of business activities (suchas automotive fuel, energy, waste, chemical substances, and water use) at Meiden Group
manufacturing sites and offices, even those outside Japan.
The information so collected is used as basic data for efforts to lower environmental impact. It
is also useful to ensure proper filings of information as required by the Act on the Rational Useof Energy, Act on Promotion of Global Warming Countermeasures, the electrical equipment
industry’s “Commitment to a Low Carbon Society,” and Japanese PRTR system for reportingchemical releases and transfers.
37

Meiden Group Sustainability

Analysis of environmental impact withenvironmental information management
systemCompliance with Environmental Regulations

Each Meiden Group work site and affiliated company sets and follows voluntary standards
stricter than applicable laws and regulations. This ensures we remain in legal compliance. If alegal violation or incident does occur, our rules state that management shall be notified within
three hours. In FY2020, there were two incidents involving exceeding voluntary standards for
wastewater, but there were no serious violations of environmental laws or regulations (including
water intake, wastewater, other waste, and harmful chemicals). We also received threecomplaints regarding noise and odor. We promptly investigated the causes of these problems
and took necessary measures each time.

38

Meiden Group Sustainability

Results Data

Incidents relating to voluntary standards Cases
Date
Location Content
Response measures, etc
1June 2020 Numazu
As a result of regular
We improved untreatedWorks
testing of factorywater and improved
wastewater conducted in treatment capabilities of
the cafeteria building
the wastewater treatment
wastewater treatment
tank by replacing seedtank, the value ofsludgesuspended solid volume
exceeded the voluntarystandards (within
wastewater standards)
2
February Numazu
Leak of waste paint due to We recovered leaked
2021
Works
breakage of a waste paint waste paint from drainage
drum
channels and the floor
immediately (no leakage
into public waterways)

Environmental Accounting (FY2020)

We quantify such data as costs of environmental initiatives.
Environmental Protection Costs
Investment (million yen)
Business area costs
Implementation of new energy515
saving devices, etc.
R&D costs
R&D costs for environmentally830
conscious products, etc.
* Scope of calculation: Meidensha (non-consolidated); period covered: April 2020–March 2021

39

Meiden Group Sustainability

Home Sustainability

Environment

Product Initiatives (Expand businesses that contribute to the environment)

Environment

Product and Service Initiatives (Expand businesses that contributeto the environment)
PolicyWe are actively promoting initiatives that contribute to the environment in order to “realize amore affluent future” by leveraging our technology and experience honed over many years.
Performance Data

Contributions to the Mitigation of Climate Change by Reducing
Product CO2 Emissions

The Meiden Group aims to contribute the environment through its products and services byutilizing renewable energy sources such as solar, wind and hydroelectric power, by improving
the efficiency of its products to save energy, and by optimizing customers’ equipment throughmaintenance and servicing.
In FY2020, we have set a target of 900,000 tons/year of environmental contribution (theexpected reduction in CO2 emissions from the products sold). We had a shipment of newhydroelectric generation equipment, which reduced emissions by 989,000 tons/year, thusachieving our annual target.

Choshi Shiosai
Wind Farm

Photovoltaic PCS

Motor/inverter/gear Low-voltage
inverter40

Meiden Group Sustainability

The reasoning behind calculation of environmental contributions of products and services is asfollows.
Applicable
Environmental Environmental contribution calculation method
products/businesses contribution(10,000t CO2)
Power conditioners 3.8
Emissions reduction if grid power is substituted withfor photovoltaic
renewable energy
generation
Wind power sales 5.2
business*
Hydroelectric30.1
generators
Electrical equipment 13.6
Emissions reduction if an equivalent grade offor electric vehicles
gasoline vehicle is substituted
Power conditioners 0.8
Emissions reduction from substitution of pumped
for storage batterieshydroelectric generation (high efficiency)
Electrical equipment 1.9
Emission reduction when substituting with ourfor electric forklifts
existing products (reduction of lost energy)
Engines and turbine 3.8
generators
Transformers
7.0
Inverters
32.2
Uninterruptible
0.5
power supplies
Total
98.9
41

Meiden Group Sustainability

* Calculated by multiplying the difference in volume of CO2 emissions at the point of use, by the
expected life and annual sales volume. However, wind power generation is calculated based on
annual power generation performance.
Initiatives

Wind Power Generation Business

M WINDS Co., Ltd. and its affiliates operate a wind power generation business and supply
renewable energy.
M WINDS conducts electricity sales from wind power generators at three locations* in Japan(30 wind turbines with a generating capacity of 51,000 kW). They conduct environmental
assessments when constructing and installing wind power generators, investigating, predicting,and evaluating impacts from various perspectives, such as that on ecosystems, and implement
environmental protection measures as appropriate while considering the opinions of local
governments and residents.
* Hachiryu Wind Farm (Akita Prefecture): 18 wind turbines with a generating capacity of 31,367
kW
Wajima Community Wind Farm (Ishikawa Prefecture): 10 wind turbines with a generating
capacity of 18,067 kW
Choshi Shiosai Wind Farm (Chiba Prefecture): 2 wind turbines with a generating capacity of
2,355 kW

Choshi Shiosai Wind Farm

Hachiryu Wind Farm

42

Wajima Community Wind
Farm

Meiden Group Sustainability

Aiming for increased utilization of wind power

We generated 111,573 MWh of electricity in FY2020, following on from FY2019 when we also
generated more than 100,000 MWh of power. Going forward, we aim to further improve theutilization rate in order to increase our environmental contributions.

Transition of Total Power Generation Performance

Motors and Inverters for Electric Vehicles

Meidensha supplies motors and inverters installed in electric vehicles, which are becoming
more common throughout the world. We promote the development of technology and products
for EV and HEV drive systems. One of our new initiatives was to commercialize Meiden e-Axle,
which is an integrated motor/inverter/gear (decelerator) product.
This is a standard product that will contribute to shorter development times for customers andmay reduce cost compared to custom products. It has a 60% higher output density comparedwith existing Meidensha products (excluding decelerator) with a maximum output of 150 kW
and a maximum drive shaft torque of 3,120 Nm.

Inverter Equipment

Since the 1980s, Meidensha has been developing a wide range of inverters. By controlling therotation of various drive machines with inverters, a large energy saving effect is achieved.
A large energy saving effect can be obtained by replacing existing system of damper
controlling dust collection blower, exhaust fan, boiler push-in fan, etc. with controlling thenumber of rotations with an inverter.
In addition, energy saving can be achieved by controlling the air volume of the air conditioning
system and gas pressure feeding system in a plant according to the season or business onpeak/off-peak operations.

43

Meiden Group SustainabilityPower Conditioner System for Photovoltaic Generation

Power conditioners system (PCS) is the most essential part of photovoltaic generation systems.
We have consistently supplied transformer-in PCS with a built-in commercial frequency isolationtransformer that emphasizes safety and security so far. PCS with 500kW output has thehighest conversion efficiency of 98.7% in the world. Container type and outdoor storage
cubicle type packaged with a set of equipment are also available.

Hydroelectric Power Generation BusinessHydroelectric power is a form of renewable energy that enables steady generation of electricity
throughout the year. Meidensha has delivered many small, medium, and large generators tocustomers in Japan and overseas.
Many of the hydroelectric power generation facilities are aging due to many years of operation.
It is effective to renovate in the most suitable way for each power facility. Renovation is
expected to improve efficiency/save energy, improve reliability/maintainability, and beenvironmentally friendly. We investigate the current status of the power facility and propose
the most appropriate renovations using the latest technology for each facility.

Vacuum Circuit Breakers (VCB)

In addition to increased demand to replace aging power equipment, demand forenvironmentally friendly circuit breakers is increasing in Japan and overseas due to tighter
regulation of SF6 gas*, which has a strong greenhouse gas. Against this backdrop, Meidensha
developed and delivering 72kV class tank type vacuum circuit breakers (“VCB”) in 2004, that
does not use SF6 gas, which has a greenhouse effect 22,800 times greater than CO2, and hasdelivered more than 2,000 units to electric power companies in Japan and overseas. In FY2020,
we completed development of the world’s first 145kV tank type VCB at that time, and started
its sales. In April 2020, we established and commenced operations of Meiden America
Switchgear, Inc., in South Carolina, U.S.A. This is the first U.S. manufacturing company to handle
environmentally friendly products in the T&D business of the Meiden Group.
Through the establishment of the new company, we aim to strengthen the manufacturing andsales of VCBs in North America, and to expand our overseas T&D business.
* SF6 gas: A chemically stable, non-toxic, odorless, colorless, non-flammable gas with threetimes the ability to withstand voltage of air at the same pressure. However, it has 22,800 times
the effect on global warming of CO2 and was listed as a controlled gas in the Kyoto Protocol toprevent global warming.

44

Meiden Group Sustainability

145kV tank type VCB

Field Engineering Business (Maintenance and Servicing)

Field engineering is a business that contributes to the solution of customer issues by providing
support through the entire life-cycle of a product, from delivery through trial runs upon
installation, subsequent proposal and implementation of operation and maintenance plans,
maintenance and management of installation locations, remaining life assessment of aging
equipment, measures to prolong life, replacement proposals, and disposal.
In addition to regular inspection of equipment, we make proposals to achieve stable operationand life-cycle cost reduction through compliance that may be overlooked such as handling of
small quantities of PCBs by the deadline, mercury arc lamps, conserving energy, andconducting environmental analysis and deterioration analysis through thermal imaging, etc.,
through walk-through activities where we walk through sites with our customers and investigate
and assess their equipment.

Thermal imaging analysis at Replacement of equipment
walk through45

Meiden Group Sustainability

Home Sustainability

Environment

Product Initiatives (Promote Environmentally Conscious Design)

Environment

Product Initiatives (Promote environmentally conscious design)
PolicyPromote environmentally conscious design

The Meiden Group is promoting development of environmentally conscious products that
reduce our impact on the environment.

Product environmental assessment

Any time we develop a new product, we evaluate it for energy and resource conservation,
recyclability, environmental safety, and more, based on our Product Environmental Assessment
Standard. If a product meets those standards, we certify it as a Meiden Green Product.
For the evaluation item “consideration of lifecycle,” we calculate CO2 emissions according to alife cycle assessment (LCA), and we encourage environmentally conscious design in order toreduce CO2 emissions.
Initiatives

Life cycle assessment (LCA) initiatives

The Meiden Group conducts an assessment of the environmental
impact of a product throughout its life cycle, from procurementof components through to disposal, in accordance with our
Guidelines for Environmental Action. We use the LCA method toquantify the environmental impact of products and services,which helps us to improve environmental performance at thedesign and development stage and to conduct productexplanations to customers and PR, etc.

Environment label (type Ⅱ)
indicating conformity with
Meidensha Green Productstandards

46

Meiden Group Sustainability

Product environmental assessment standards
Classification
Product volume reduction

Items◦Weight reduction◦External dimensions and capacity◦Reduction of number of components◦Reduction of power consumption◦Water saving◦Reduction of consumables◦Reduction of packaging volume◦Use of recycled materials◦Separability of materials◦Ease of collection and transport◦Maintainability◦Reliability and durability◦Environmental friendliness◦Reduction of life cycle environmental
impact◦Disclosure of information concerning
evaluation of environmental impact◦Danger of fire or explosion◦Danger at time of dismantlement◦Environmental measures◦Provision of information concerning a
product’s environmental impact

Energy and resource conservation

Recycling

Long-term usability
Management of chemical substances
Life cycle consideration

Environmental safety

Information disclosure

47

Meiden Group Sustainability

Home Sustainability

Environment

Product Initiatives (Examples of Meiden Green Product Registered in FY2020)

Environment

Product Initiatives (Examples of Meiden Green Product Registeredin FY2020)
A Meiden Green Products Registered in FY2020[Product] New Driving Robot TYPE-i
A system for automatic operation ofcomplete vehicles on the chassis
dynamometer. Accelerator, clutch,transmission, brake, and ignition key areoperated with an electric actuator in thesame manner as they would be by a human.
The driving robot is made from a single piece
construction of carbon fiber reinforced
plastic (CFRP) rather than conventional metal,
which improves operability at every level.
This product has the following advantages
over its predecessor.
● 55% lighter and 58% smaller due singlepiece CFRP construction● 22% less electricity consumption due toimprovements in robotic drive systems
Lifecycle CO2 Emissions
Lifecycle CO2 Emissions

48％* Percentage based on previous model of
equivalent Meidensha product
Click here for related products and details.

48

Meiden Group Sustainability

[Product] Ultra-low Power Consumption Transmitter TELEMOT LE (Cat.M1)
Affixed to the underside of manhole covers,
this device measures sewer pipe information(water level, pH, etc.) and transmits it
wirelessly to the cloud using an antenna on
the upper side of the manhole cover.
Latest data gathered in the cloud can be
managed in real time via the internet using
customers’ devices (PCs, tablets,
smartphones).
This device employs an LPWA* LTE-M(Cat.M1) cellular communication system.
This product has the following advantages
over its predecessor.
● 53% reduction in power consumption
through LPWA transmission● Increased serviceability through dual
power supply
Lifecycle CO2 Emissions

Lifecycle CO2 Emissions

86％* Percentage based on previous model of
equivalent Meidensha product※ LPWA：Low Power Wide Area

49

Meiden Group Sustainability

Home Sustainability

Environment

Product Initiatives (Management of chemical substances in products)

Environment

Product Initiatives (Management of chemical substances in
products)
Initiatives

Management of chemical substances in products

We operate an “Environmental BOM*1 Management System” that collect and communicate
information concerning chemical substances contained in products through a cloud-based Web
system.
We work to share information with suppliers of components, materials, etc., throughexplanatory sessions, individual consultations, etc., using chemSHERPA*3 operated by JAMP*2.
We register the chemSHERPA*3, etc. provided by our suppliers with the Environmental BOM
Management System to determine the aggregation of chemical substances contained in eachproduct and compliance with regulations.
*1 BOM: Bill of Materials*2 JAMP: Joint Article Management Promotion Consortium. JAMP aims to appropriately
manage information about chemical substances, etc., in products, and create and spread
specific mechanisms for smooth disclosure and communication within the supply chain.
Meidensha is a member of JAMP. (Membership page URL:
https://chemsherpa.net/jamp/memberlist)*3 ChemSHERPA: An information transfer scheme that facilitates the disclosure/communicationof chemical substances information in products, which is maintained and managed by JAMP

Diagram of Environmental BOM

50

Meiden Group Sustainability

Home Sustainability

Environment

Climate Change

Environment

Climate Change
Awareness

Since its establishment in 1897, Meidensha has produced a range of technologies, products,
and services and contributed to the development of a sustainable society in its role as amanufacturing company. In particular, we are deeply involved with decarbonization andreduction of carbon through power generation systems that utilize renewable energy sources
such as solar, wind, and small to medium hydroelectric, as well as energy solution services suchas smart grids. Through these environmentally conscious products, we aim to contribute to theachievement of a sustainable society and we are working to reduce greenhouse gas emissions
from business activities.
GovernanceMonitoring of Climate Change by the Board of Directors

Monitoring of the Risks and Opportunities Created by Climate Change at the Level ofthe Board of Directors

Under the direction of the President, who is the Chief Executive Officer, the Executive Officer(Environment) oversees the environmental management of the entire Meiden Group, while theEnvironmental Manager in Charge of EMS promotes maintenance and improvement of theenvironmental management system.
As the highest decision-making body with regard to environmental activities, the Meiden Group
Environmental Committee, which is chaired by the Executive Officer (Environment), identifies
issues including risks posed by climate change and deliberates concerning environmental
targets, action plans, and emergency response, etc., as well as determining environmental
management direction. As part of its role, the Environmental Committee refers importantmatters to the Executive Committee and the Board of Directors, etc., to initiate activities basedon executive-level decision-making.

EMS Promotion Organizations

51

Meiden Group Sustainability

Indicators

Amount of Greenhouse Gas Emissions
Scope 1 and Scope 2 emissions

In FY2020, we commenced the aggregation of environmental performance data from PRIMEMEIDEN LTD. to strengthen activities to reduce environmental impact. As a result, theaggregate figure for overseas Scope 2 emissions rose.
（t-CO2）FY2017FY2018FY2019FY2020Japan Overseas Japan Overseas Japan Overseas Japan Over27,197 5,723
18,137 4,886
16,491 5,215
16,161 3,84

SCOPE1
Direct emissions
from in-house use offuel, etc.
SCOPE2 Location 27,309 7,177
Indirect basis
emissionsfrompower orheat
25,868 ‐purchased Market
from an basis
outsidesource27,212 7,480

24,980 7,043

24,479 9,75

25,573 ‐24,724 ‐23,490 ‐Amount of Greenhouse Gas Emissions (Scope 1 and 2) – Emissions from Business
Activities

Scope 1: Direct Emissions
Combustion of fuel (town gas and oil, etc.) and release of greenhouse gasses (SF6 and CFCs,
etc.)
Scope 2: Indirect Emissions
Combustion of fossil fuel to generate electricity (electricity company) that is consumed by the52

Meiden Group Sustainability

company* Renewable energy produces zero emissions
Results Data

Amount of CO2 Emissions from Energy Sources

From FY2020, we commenced the aggregation of the environmental performance data of
PRIME MEIDEN LTD., which led to increased CO2 emissions per unit of overseas sales. We willfurther enhance initiatives for environmental impact reduction activities through review of CO2
emissions calculation methods.

Amount of CO2 emissions from energy sources/CO2 emissions per sales unit

* Japanese emissions: The amounts of fuel oil and fuel gas are calculated referring to the "Listof Calculation Methods and Emission Factors in the Calculation, Reporting and Publication
System" for the relevant fiscal year published by the Ministry of the Environment. The amountof electric power is calculated referring to the "Emission Factor List by Electricity Power
Company" published by the Ministry of the Environment.
* Overseas emissions: The amounts of fuel oil and fuel gas are calculated referring to theemission coefficient by country published by the GHG protocol. The amount of electric power iscalculated referring to the average coefficient by country in 2010-2012 published by theInternational Energy Agency (IEA).
* Energy consumptions per unit are emissions (t-CO2) divided by net sales (million yen).

53

Meiden Group Sustainability

Energy Consumption (crude oil equivalent)

Energy consumption/energy consumption per unit of sales* Energy consumptions per unit are energy consumption (crude oil equivalent, kL) divided by
net sales.
Initiatives

Reduction of CO2 Emissions from Business Activities

The Meiden Group is conducting strategic capital investment in order to reduce greenhousegas emissions from energy consumption, such as by replacing lighting and air conditioning
equipment with highly efficient models. Furthermore, we are working to improve operation ofequipment by enabling visualization of power consumption and strictly managing power
consumption, particularly at night and on holidays.
In recent years, we have procured electricity from renewable sources in an effort to reduce CO2
emissions from business activities.
In FY2019, we procured electricity with non-fossil fuel certificates for the Meiden R&D Center
and Osaki Kaikan Hall. In FY2020, EAML Engineering Co., Ltd. joined a pricing menu that utilizes
environmental value of renewable energy sources.
From FY2021 onwards, we will procure electricity from CO2-free hydroelectric sources for the
Ota Works, which is one of our main production sites.
TOPICS
Procurement of Electricity with Zero CO2 Emissions Using Non-Fossil Fuel Certificates
Since November 2019, we have procured electricity from substantially renewableenergy sources for the R&D Center and Osaki Kaikan Hall in combination with
FIT*1 and non-fossil fuel certificates*2, which carry tracking information for thesubsidiary, M WINDS Co., Ltd.’s Choshi Shiosai Wind Farm. Through non-fossil fuelcertificates containing tracking data, we are able to link electricity that is54

Meiden Group Sustainability

consumed by the R&D Center and Osaki Kaikan Hall to the environmental value ofenergy produced by Choshi Shiosai Wind Farm, demonstrating that we produce
net zero CO2 emissions. In this way, electricity consumption by Meidensha’s R&D
Center and Osaki Kaikan Hall produces net zero emissions.
Furthermore, using non-fossil fuel certificates with tracking information makes it
possible to conform with the international initiatives RE100, which has the goal of
obtaining 100% of the electricity required for business activities from renewableenergy sources. This expand our options to effectively utilize existing wind farms.
As demand for electricity from renewable energy sources is rapidly increasing, withthe aim of decarbonization, Meidensha will continue to work to reduce its
environmental impact and provide products and services that contribute to asustainable society.

*1 Feed-in tariff (FIT) scheme: A system to require electricity companies topurchase electricity generated from renewable energy sources (solar, wind, hydro,
geothermal, biomass) for a certain period of time. The system was launched in July2012 in order to promote the use of renewable energy.
*2 Non-fossil fuel certificate: A certificate issued by the Ministry of Economy, Tradeand Industry that certifies the environmental value of electricity that does notcreate CO2 emissions, such as electricity from renewable energy sources. Trading
commenced through Japan Electric Power Exchange in May 2018, and ademonstration experiment that included tracking information (information thatclearly states the type and location of energy source) in certificates commenced in
March 2019.
TOPICS
Procurement of CO2-Free Electricity that is Produced and Consumed in Gunma
Prefecture for Ota Works
From April 2021, Meidensha procures electricity from CO2-free hydroelectric
sources in Gunma Prefecture for Ota Works (Ota, Gunma), which is one of ourmain production sites. Up to this point, we have trialed procurement of CO2-freeelectricity for some facilities such as the Meiden R&D Center (Shinagawa, Tokyo),but this is the first time we have introduced it for whole production sites. Thisinitiative uses the Gunma Hydroelectric Power Source Plan*1 from the power menu
provided by Gunma Prefecture and TEPCO Energy Partner, Incorporated. Thispower menu is a plan for local generation and consumption of electricity provided
from hydroelectric power plants directly run by Gunma Prefecture (excluding
pumped hydro and FIT) to enable zero CO2 emissions from electricity consumption.
A portion of electricity charges are used for environmental protection projects,
etc., in Gunma, which contributes to the local community.
55

Meiden Group Sustainability

Ota Works was established in 1977 as a dedicated rotating machinery factory. It
currently focuses on medium and large rotating machinery and power generationequipment and dynamometers, which are used for research and development, etc.,
of vehicles, etc., and develops and manufactures environmentally considerate
equipment. We have delivered many generators produced at Ota Works tohydroelectric power plants in Gunma, and Ota Works accounts for approximately
10% of the Meiden Group’s total power consumption.*2 Going forward, Ota Works
will manufacture hydroelectric power generation equipment and component
products using electricity from renewable energy produced by hydroelectric
generation.
The Meiden Group is considering procurement of electricity from renewablesources at each site. We will continuously work to reduce greenhouse gas
emissions from business activities, etc., including prioritizing the introduction ofequipment with a low environmental impact, etc., and contribute to the realizationof a sustainable society through the development and delivery of products andservices that contribute to global environmental conservation.
*1 Application for trademark registration of “Gunma Hydroelectric Power SourcePlan” filed in Gunma Prefecture.
*2 FY2019 power consumption: 7,123 MWh.
Initiatives and Results Data

Reducing Emissions of Greenhouse Gasses Other than CO2

The Meiden Group’s emissions of greenhouse gasses other than CO2 include SF6 gas, which isused for lightning arresters and circuit breakers, etc., and CFCs, which are used as refrigerants
in air conditioners.
With regard to SF6 gas, which contributes greatly to the greenhouse effect, we are working to
reduce emissions and conducting technical investigations and trials of substitute gasses.
56

Meiden Group Sustainability

Furthermore, in order to reduce CFC emissions, we are promoting stricter management andreplacement of air conditioners.

Emissions of Greenhouse Gasses Other than CO2 (Japan)

Reduction of CO2 Emissions from Product Transport

The transport division is conducting product transport efficiency reforms such as mixed loads
and modal shift, as well as initiatives to reduce CO2 emissions from transport. There are many
issues relating to product transport, including diversification of forms of delivery, but going
forward, we will work to reduce CO2 emissions by promoting efficient transportation.

CO2 Emissions from Product Transport (Japan)

Calculation of Greenhouse Gas Emissions in the Supply Chain

Meidensha is working to calculate greenhouse gas emissions, including indirect emissions in the
upstream and downstream supply chain in addition to those produced in the course of its
business activities. Meidensha is facing the issue of producing a large proportion of its
emissions from “use of sold products” (scope 3, category 11) and “purchased goods andservices” (scope 3, category 1). We are promoting environmental measures throughout theentire supply chain, including reducing downstream greenhouse emissions through57

Meiden Group Sustainability

environmentally considerate product design and reducing upstream impact through green
procurement.

Meidensha’s Greenhouse Gas Emissions in the Supply Chain (Scope 3)

We calculate for our supply chain with reference to the Basic Guidelines on Accounting forGreenhouse Gas Emissions Throughout the Supply Chain, published by the Ministry of theEnvironment and the Ministry of Economy, Trade and Industry, etc.
In developing the Second Meiden Environmental Vision, which set new medium to long-term
environmental targets and launched in FY2021, we completely reviewed Scope 3 calculation
methods. We transitioned from calculating the non-consolidated value of Meidensha tocalculating the consolidated value of the Meiden Group. For Category 11, we increased
precision by conducting more detailed calculation of emissions per unit of production for eachproduct group. Thus, values announced up to FY2020 lack continuity; however, going forward
we intend to trace these values using this calculation method and revise them as necessary.
Category
Calculation Method
Amount of Activity
Basic Unit
1. Purchased goods and services Purchase price (materials,
3EID
consumables, services,etc.)
2. Capital goods
Amount invested in fixed
Ministry of theassetsEnvironment Basic Unit DB
3. Fuel and energy related activities Amount of energy
Ministry of the
not included in Scopes 1 or 2
consumption (electricity, Environment Basic Unit etc.)
DB
4. Transportation and delivery
Transportation cost
3EID
(upstream)(freight, storage, packing,etc.)
5. Waste generated by operations Emissions of each type of
Ministry of thewasteEnvironment Basic Unit DB
6. Business travel
Transportation expenses
Ministry of theprovided (travel allowance, Environment Basic Unit etc.)
DB
7. Employee commuting
Transportation expenses
Ministry of theprovided (travel allowance, Environment Basic Unit etc.)
DB
8. Leased assets (upstream)
Rent (Leased items, etc.)
3EID
58

Meiden Group Sustainability

9. Transportation and delivery(downstream)
10. Processing of sold products
11. Use of sold products
12. End-of-life treatment of soldproducts
13. Leased assets (downstream)
14. Franchises
15. Investments
Other

Amount of activity of
3EIDsales agents, etc.
Not applicable as the―Company’s products
include many formed
items
Calculated based on the
3EID
specifications of
Meidensha products andoperating conditions
Expected cost of disposal
3EIDof sold goods
Energy usage at leased
Ministry of thereal estate
Environment Basic Unit DB
Not applicable as outside―of the scope of theCompany’s businessNot applicable as shares―
held by the Company are
not for the purpose ofinvestment
Excluded from the scope―of calculation as item is
optional

59

Meiden Group Sustainability（t-CO2）
Category
1. Purchased goods and services
2. Capital goods
3. Fuel and energy related activities not included in
Scopes 1 or 2
4. Transportation and delivery (upstream)
5. Waste generated by operations
6. Business travel
7. Employee commuting
8. Leased assets (upstream)
9. Transportation and delivery (downstream)
10. Processing of sold products
11. Use of sold products
12. End-of-life treatment of sold products
13. Leased assets (downstream)
14. Franchises
15. Investments
Other
Total

60

FY2019FY20201,154,039
1,180,468
40,021
51,042
1,883
1,893
1,204
1,587
3,193
1,152
2,264
1,136

―
6,370,000
5,992
18,509―――7,600,980

1,346
2,004
1,007
940
2,124
1,056

―
6,050,000
5,418
16,837―――
7,314,136

Meiden Group Sustainability

Home Sustainability

Environment

Disclosure based on TCFD recommendations

Environment

Disclosure based on TCFD recommendations

Support for the “Task Force on Climate-related Financial Disclosure (TCFD)” Proposal

Meidensha has endorsed the TCFD* recommendations, and conducted disclosure inaccordance with the information disclosure framework recommended by TCFD (governance,
strategy, risk management, and metrics and targets, relating to risks and opportunities
associated with climate change). Going forward we will consider further widening the scope of
disclosure, and we will further enhance governance and business strategies relating to climatechange, according to the results of scenario analysis.

* TCFD: Task Force on Climate-related Financial Disclosure established by the Financial Stability
Board (FSB) .
Governance/Risk Management

Governance/Risk Management

Under the direction of the President, who is the head of the top management, the Executive
Officer in charge of environmental issues (Director & Senior Managing Executive Officer, Norio
Takekawa) oversees the environmental management of the entire Meiden Group, while the GM
of Environmental Management Program Administration Division promotes maintenance andimprovement of the environmental management system. As the highest decision-making bodywith regard to environmental activities, the Meiden Group Environmental Committee, which ischaired by the Executive Officer in charge of environmental issues , identifies issues, including
risks posed by climate change and deliberates concerning environmental targets, action plans,and emergency response, etc., as well as determining environmental management direction.
In FY2021, we established the ESG Management Promotion Committee to debate management
issues relating to all aspects of environment (E), society (S), and governance (G). We plan for it
to monitor risks and opportunities, including climate change, in conjunction with the existing
Environmental Committee and Risk Management Committee.

61

Meiden Group Sustainability

Risk Management, Strategy

Scenario Analysis

When understanding the effects of climate change on the Meiden Group and working out
responses, first, we listed risks and opportunities from perspectives such as policy and legal
restrictions and technology, and summarized management risks and opportunities. The risks
and opportunities facing the Meiden Group are as follows.
Opportunities
Transition Policy and ①Increased cost Expansion of the
risks
legal
of greenhouserenewable energy,
restrictions gas emissions
energy conservation,and electrification
businesses
Expansion of railwayrelated businesses②Tightening of Expansion of EVZEV regulations related businesses due
to ZEV market
expansion③Tightening ofrecycling
regulations―④Tightening ofchemical
substance
regulations

Expansion of the SF6
gas less business

62

Risks
Increased
manufacturing
anddevelopment
costs due tocarbon taxes
Losing orders
due to notmeeting
customers’
demands
Intensifiedcompetition
Increased costs
due to review of
production
equipment andsuppliers
Increased
development
and production
cost forrecyclable
products
Increased
development
and production
cost
Decline inbusinesses thatuse SF6 gas
Meiden Group Sustainability

Opportunities
Expansion of therenewable energy
business
Expansion of therenewable energy,
energy conservation,and electrification
businesses
Acceleration of energy
management
technology⑤Renewableenergy subsidy
policies
Technology ⑥Spread ofrenewableenergy andenergy-efficienttechnologies

Market⑦Spread of CO2
utilization andstoragetechnologies

Wide-scale reduction ingreenhouse gas
emissions⑧Fall of fossil
fuel prices

Expansion of therenewable energy,
energy conservation,and electrification
businesses
Fuel cost reduction
Expansion ofdecentralized powersource and VPPbusinesses⑨Transition to adecentralizedsociety
Evaluation ⑩Changed
standards ofcustomers andinvestors

Increased corporate
value throughexpansion of theenvironmental
contribution business
Securing various
capital procurement
opportunities

63

Risks
Intensifiedcompetition
Decreasedcompetitivenessdue to lateapplication oftechnology
Increased
development
and production
cost
Slowdown of
the renewableenergy, energy
conservation,
andelectrification
business―

Loss ofbusiness
expansion
opportunities
due to late VPP
participation
Shrinking ofenvironmentally
negativebusinesses
Increased costs
due toresponding to
traceability
requirements

Meiden Group Sustainability

Physical
risks

Urgent⑪Increased
frequency ofabnormalweather events

Chronic⑫Rising of
averagetemperature

Opportunities
Increased demand for
BCP products andservices

Expansion of theautomation and remotecontrol businesses

64

Risks
Suspension of
production lines
and sites,
reduced sales,and delayeddeliverySupply chain
review andincreasedprocurement
costs
Worse labor
environment
Increasedenergyconsumption
Reduced sales
due tovoluntarily
refraining fromworking insummer season

Meiden Group Sustainability

Importance of Risks and Opportunities

Next, we analyzed the matters that could have a serious impact on the Meiden Group for eachvalue chain, and prepared the following matrix. Risks and opportunities that would greatly
impact management are analyzed in detail and response measures are considered in thefollowing paragraphs.

Notes:
1. The top-right section indicates items that would have a great impact for the Meiden Group
2. Items that would have a particularly great impact and require detailed analysis arehighlighted in dark yellow

Scenario Selection and Outlooks

The Meiden Group analyzed the IEA and IPCC’s scenarios of below 2°C and 3°C.
Due to increased environmental awareness, countries have come up with various policies, so wedetermined that the 4°C scenario was not possible and we used the current scenario of 3°C.

Major Climate-related Risks, Opportunities, and Responses

We identified items that would particularly impact the Meiden Group’s achievements andcalculated the impact on FY2030 (net sales: 340.0 billion yen) operating income in eachscenario. Based on the results of this analysis, we are reflecting the results in our businessstrategy to further expand our environmental contribution businesses such as EV andrenewable energy businesses.
65

Meiden Group Sustainability

Item

Evaluated Impact Impact Meidensha’s
financial at 2°C at 3°C response
impactTransitional Policy and ①Increased Expansion of ++++Development
legal
cost ofthe renewableand promotion
restrictions greenhouse energyof expansion
gas emissions businessstrategies forthroughhydroelectric,
accelerated
wind power, andintroduction ofphotovoltaicrelated
renewablebusinesses
energyIntroduction of -‐‐Formulation ofa carbon tax
scope 1 and 2
reduction
targets andgreenhouse gas
reduction②Tightening Expansion of +++++ +++++ Developmentof ZEVEV businessand promotion
regulationsof expansion
strategies for
EV motors andinverters-related
businesses
Expansion of +++Development
mobility T&S
and promotion(test &of expansion
solution)strategies forbusiness
expansion of
EV-related
mobility T&S(test & solution)businesses④Tightening Expansion of +++Developmentof chemical SF6 gaslessand promotion
substance productsof expansion
regulations because of
strategies forprohibition of
SF6 less
SF6 gas use
products in thePowertransmission
and distribution
business
66

Meiden Group Sustainability

Item

Evaluated Impact Impact Meidensha’s
financial at 2°C at 3°C response
impact⑧Fall of fossil Reduction of +++Electrificationfuel prices fuel costs
and increased
efficiency ofequipment andreducing theuse of gasses
that are thesource ofgreenhouse gas
emissionsPhysical Urgent⑪Increased Production ------Formulation of
frequency of stoppages,
BCPs,
decentralization
abnormalequipment
weatherdamage, andof EV factory
eventscollapse of
production
supply chainssites, anddue to floods
diversificationof suppliers, etc.
Chronic ⑫Rising of Deterioration Promotion of-averagein production
labor-saving
temperature efficiency due
measures andto worsening
automation forof the laborfactories,
maintenance,
environment
and worksites,
andenhancement ofhealthmanagement
Increased cost -Promotion of-of energy
labor-saving andconsumption,
space-savingetc.
measures atfactories*“Impact” refers to the impact on operating income

67

Meiden Group Sustainability

Future Path

We have identified the growth opportunities and risks facing the Meiden Group by analyzing
TCFD; however, in most instances, calculation of the impact is merely a rough estimate, andfurther precision is needed. Furthermore, we have only analyzed some items with a large
impact, and we will continue to promote analysis, including for items that were not analyzed on
this occasion.
Metrics and Targets

Establishment of Medium to Long-term Environmental Targets“Second Meiden Environmental Vision”

In consideration of stepping toward accelerating becoming a carbon-neutral society by 2050,
the Meiden Group has upwardly revised its FY2030 greenhouse gas emission reduction targets,
which is a which is an intermediate stage of it. As the Second Meiden Environmental Vision, we
aim for a 30% reduction of emissions from business activities (scope 1+2), and a 15%
reduction of emissions from product use (scope 3, category 11) by FY2030 compared to
FY2019 levels. These targets received SBT certification as they were recognized by the Science
Based Targets (SBT) initiative*1 as being consistent with the Paris Agreement*2. To attain thesetargets, we joined the Ministry of the Environment’s “FY2020 project to support modelbusinesses in compiling a plan to reduce CO2 emissions toward realizing SBTs.” With that
support, Meiden has compiled the FY2021 version of the Meiden Group’s plan to reducegreenhouse gas emissions toward attaining SBTs. This plan outlines initial ideas for an
implementation plan and specific reduction measures to implement long-term reduction
measures by the target year stated in the Second Meiden Environmental Vision. We will revise
and optimize it as appropriate.

*1 SBT Initiative: An international initiative by the United Nations Global Compact (UNGC), theWorldwide Fund for Nature (WWF), the CDP, and the World Resources Institute (WRI).
*2 Paris Agreement: An international framework “to limit average global temperature rise to
below 2°C compared to pre-industrial levels and to strive to limit it to 1.5°C,” which was adopted
at COP21 in 2015.

68

Meiden Group Sustainability

FY2030 Greenhouse Gas Emissions Reduction Targets (Second Meiden Environmental
Vision)FY2030 greenhouse gas
emissions reduction targets

First Meiden
Second Meiden
Environmental Vision Environmental Vision(Released in May 2018) (From April 2021)
Emissions from business activities 30% reduction (compared 30% reduction (compared(scope 1+2)）
to FY2017)］
to FY2019)
Emissions from product use (scope NA
15% reduction (compared3, category 11)
to FY2019)

Main Measures to Cut Greenhouse Gas Emissions
FY2030 greenhouse gas Reduction measures (extract)emissions reduction
targets
Emissions from business Replacing SF6 gas (replacement with dry air, etc.)
activities (scope 1+2)
Capital investment (replacing aging equipment, introducing
30% reduction (compared high-efficiency equipment, replacing gas with electricity, etc.)
to FY2019)
Renewable energy procurement (non-fossil fuel certificate,
power menu, etc.)
Switching company-owned cars to electric vehicles
Emissions from productEco-friendly product design (eliminating use of SF6 gas, anduse (scope 3, category 11) downsizing products and making them more efficient)
15% reduction (compared Revising business portfolio (increasing ratio of businesses
to FY2019)with low carbon emissions per unit of sales such as EV,
maintenance services and small and medium-sizedhydropower generation)
Overall
Generating innovation
Introducing internal carbon pricing

69

Meiden Group Sustainability

Home Sustainability

Environment

Prevention of Pollution and Effective Utilization of Resources

Environment

Prevention of Pollution and Effective Utilization of Resources
PolicyCommitment to Waste and Pollution Prevention

The Meiden Group is working to reduce the environmental impact of all domestic and overseas
business activities, as well as achieve energy efficiency, promote the 3Rs in relation to waste,
and reduce emissions of hazardous chemicals as stipulated in our Guidelines for Environmental
Action. Furthermore, we will establish our own internal standards and work towards preventing
environmental contamination while complying with all environmental laws, regulations, and otherrequirements.
Guidelines for Environmental Action
Initiatives and Results Data

Tightening Management of Chemical Substances

We are working to conduct risk assessment of chemical substances used at production sites,
etc., to improve the workplace environment, and reduce or substitute hazardous chemical
substances with a substantial risk.
In order to prevent workplace accidents, health impairment, and fire or environmental pollution
due to leakage or spillage of chemical substances, we routinely conduct patrols of sites where
chemical substances are used to alert workers, and take corrective measures where themanagement status of chemical substances is found to be inappropriate.

Tightening Management of Chemical Substances

70

Meiden Group Sustainability

Reduction of Volume of Volatile Organic Compounds (VOC)
Released

In FY2020, we released 75 tons of VOC. Going forward, we will promote improvement ofvarnish impregnation processes, collection of organic solvents, substitution of low VOC paintand acetone, and reduction of VOCs released.

Volume of VOCs Released and Reduction Rate (Japan)

Promotion of Disposal and Processing of Devices that Include
PCBs

In accordance with the Act on Special Measures concerning Promotion of Proper Treatment of
PCB Wastes (PCB Special Measures Act), we are gradually disposing of devices that contain
PCBs (polychlorinated biphenyls) such as transformers and condensers that were
manufactured in the past and stored for nearly to 40 years.
In FY2020, we disposed of 1.0 ton of waste containing high concentrations of PCBs andtreated 50.3 tons of waste containing low concentrations of PCBs.
Meidensha has been promoting disposal of PCB waste since FY2007, and by FY2019, we had
disposed of approximately 103 tons of waste containing high concentrations of PCBs andtreated 341 tons of waste containing low concentration of PCBs.

Volume Treated of Harmful Waste (Waste Containing PCBs)

71

Meiden Group Sustainability

Promoting the 3Rs for Waste (Reduce, Reuse, and Recycle)

Meidensha is working to recycle waste generated at production sites and offices.
In FY2020, we revised our calculation method for recycled quantity, and we worked to improve
the precision of calculation by appropriately calculating the amount of waste generated byrecycling. The amount of waste increased due to a large amount of waste (debris) being
generated by an increase in on-site construction; however, we will work to reduce the amountof waste generated by continuing to promote the 3Rs.

Trends in Generation of Waste, etc., and Recycling Rate (Japan)* Construction sludge, etc., is excluded from the amount of waste, etc., generated.

Breakdown of Waste Generated in FY2020 (Japan)

Collaboration with Other Companies to Reduce Waste and Resource Use (Recycling
Epoxy Resin Molded Components)

Meiden Chemical Co., Ltd., which is a group company involved with manufacture and sale ofelectrical insulators has realized the recycling of used epoxy resin molded components as raw
72

Meiden Group Sustainability

materials by using a method of depolymerization under ordinary pressure, which separates themetal from the resin. Epoxy resin molded components are generally disposed of in landfill as
they are considered difficult to recycle; however, Meiden Chemical Co., Ltd. has licensed thepatented room temperature dissolution method from Showa Denko Materials Co., Ltd. (formerly
Hitachi Chemical Co., Ltd.), which enables it to recycle 95% of existing components, as well as
control cost than sending them to landfill. During recycling, we conduct lifecycle assessment(LCA) according to data obtained at the testing plant, which quantitatively assesses
environmental impact if recycled and if not recycled.
In addition to insulating molded components, Meiden Chemical Co., Ltd. is working to roll out
insulating material products as major flagships with features such as long-life resin for
impregnation and environmentally friendly low-odor varnish.
Meiden Chemical Co., Ltd. is currently engaging in research such as extraction of rare metals
by dissolving insulating varnish from superconducting coils and recycling of fiber-reinforced
plastic to produce resources again.

Flow chart of dissolution recycling of epoxy resin molded components

Dissolution plant exterior

73

Meiden Group Sustainability

Home Sustainability

Environment

Water Resources

Environment

Water Resources
Recognition

In recent years, there has been increasing global awareness of “water risks” such as water
shortages and localized heavy rain as a factor that can greatly affect business due toincreasing population and global warming, etc. In order to prepare for risks such as supply
chain disruptions due to flooding damage, we provide all suppliers with the Meiden Group
Supply Chain CSR Promotion Guidebook and the Green Procurement Guidelines, and promotewater resource conservation and Business Continuity Plan (BCP).
Initiatives

Water Risk Assessments

The Meiden Group conducts evaluation of water risk for initiatives to conserve water andcomply with effluent standards. Using the free water risk evaluation tool, Water Risk Filter,
provided by the World Wide Fund for Nature, we conducted evaluations for 13 production sites
in eight countries, and although many sites were assessed low risk, some sites in India andChina were considered to be located in comparatively high-risk areas, and we found that risks
relating to securing volume and quality of water were particularly high.
These sites do not use large quantities of water for production so there is no great concern at
this time; however, based on the results of the evaluation, the Meiden Group takes the optimal
countermeasures for each site based on the water risk assessment results.
Water Risk Assessment Results for Regions Where Production Bases are Located74

Meiden Group Sustainability

Initiatives and Actual Data

Reducing Water Consumption

There are water temperature management functions to limit algal blooms in on-site fire cisterns
through water discharge and supply. To limit discharge volume, we are working to reduce water
consumption through automatic control using water temperature sensors.
We are concerned about the possibility of water leaks as groundwater and surface water
buried pipes age. We are systematically updating the pipes and placing them above ground foreasier maintenance and inspections.

Water discharge control
valve

Automatic control panel

Trends in Water Usage Volume (Japan)* Water usage volume includes tap water, water for industrial use, andground water.
* Measurement points were changed in fiscal 2019 in order to increase
accuracy, there is no continuity with those before fiscal 2018.

75

Meiden Group Sustainability

Trends in Effluent by Discharge Location (Japan)

We ensure legal compliance by establishing and applying at each site and subsidiary voluntarystandards that are stricter than legal restrictions.

Trends in BOD Emissions (Japan)

BOD

FY2017
6,297kg

FY2018
7,389kg

FY20194,843kg

FY20206,424kg

Initiatives

Conservation of Water Resources: Initiatives through BusinessContributing to the Solution of a Range of Issues Relating to Conservation of Water
Resources

In addition to design, construction, and execution of water treatment plants, the Meiden Group
provides total support through to operation and maintenance as a general water treatment
manufacturer, based on our record of involvement with construction and development of waterand sewerage systems in Japan. We are contributing to the solution of a range of issues
relating to the conservation of water resources through or water infrastructure systems
business, which is one of our core businesses.
Click here for details of products and services relating to water treatment.

Click here for Products & Services related to Water Infrastructure Systems

76

Meiden Group Sustainability

TOPICS
Meidensha’s ceramic flatsheet membranes are used by Nagaoka University ofTechnology in the “Development of Technology for Securing Water for Daily Use”
demonstration experiment.
Since September 2020, Meidensha’s ceramic flatsheet membranes for water
treatment have been adopted by Nagaoka University of Technology (Nagaoka,
Niigata Prefecture, President: Kamado Shigeharu, hereinafter “NUT”) in ademonstration experiment for the ”Development of Technology for Securing Water
for Daily Use”.
The purpose of this demonstration experiment at the "Idea Development Dojo"*1, a
common course for graduate students to learn the practical application of idea
development, is to establish and put into practical use the technology of selfcontained rainwater utilization systems to secure water for daily use by enabling
non-electric purification utilizing the difference in elevation of rainwater.
Self-contained Rainwater Utilization Systems
It is a device that collects rainwater on the roof surface and enables non-electricwater purification due to the difference in elevation, thus securing water for daily
use even in situations where electric power supply is limited, such as in times ofdisaster. Rainwater that falls on the roof is stored in a storage tank before passing
through a bio-filter in which microorganisms are grown on sponge carriers toremove organic materials and nitrogen compounds in the rainwater. It is thenfilterd through a ceramic flatsheet membrane that utilizes the difference in gravity
to purify the water to a level that can be used for domestic purposes. This
technology is being optimized by NUT through demonstration experiments at the
Idea Development Dojo for practical use.

Ceramic flatsheet Membranes
Meidensha’s water treatment ceramic flatsheet membranes, which are used fordemonstration experiments, are ceramic filters used to purify contaminated water.
They last longer and are more abrasion resistant than organic membranes, etc.
We commenced sales of this product in 2012, and it has been adopted fortreatment of industrial wastewater in more than 100 locations in Japan andoverseas.
77

Meiden Group Sustainability

Ceramic flatsheet membrane element Diagram of membrane filtration
September 10, 2020 Press Release
Ceramic flatsheet membranes are used by Nagaoka University of Technology totest the development of technology to ensure domestic water supply, etc.
TOPICS
Demonstration Experiment of Flooding and Inundation Countermeasure Support
Service in Tsukubamirai City
Meidensha reached an agreement with Tepco Town Planning Co., Ltd. to conduct ademonstration experiment of flooding and inundation countermeasure support
service in Tsukubamirai City, Ibaraki Prefecture. Through this demonstration
experiment, we verify the effectiveness of disaster prevention measures bycollecting flooding data and distributing information based on it.
In recent years, localized torrential heavy rainfall in a short period of time andaccompanying urban inundation have been increasing due to climate change. The
annual average number of localized downpours was 226 from 1976 when records
began through to 1985; however, from 2010 to 2019 the average was 327, which
is about a 1.4-fold increase*1. Against such a background, it is required in terms ofdisaster prevention to take measures against flooding and inundation.
In this demonstration experiment, IoT technology visualizes information that has
been difficult to manage up to now, such as the water level of sewer pipes and thewater level overflowing on the ground, and centralizes disaster prevention
information by sharing information on the cloud. The water level in the sewer pipes
is detected by the sensors attached to manholes, and the water level on the
ground is detected by the sensors attached to the power poles. In Tsukubamirai
City, real-time observation information and water level prediction information are
integrated as disaster prevention information and utilized for road closures/trafficroute determination, sandbag/water stop board installation, evacuation calls,
rescue/recovery determination, etc., as well as information provision to citizens asneeded. In this way, efforts to achieve disaster prevention and mitigation by
centrally monitoring water levels above and below the ground are the firstattempts in Japan to contribute to corresponding to climate change.
Through this demonstration experiment, we contribute to the creation of asustainable community that is responsive to issues relating to flooding andinundation.
78

Meiden Group Sustainability

*1 : Source: Japan Meteorological Agency national (AMeDAS) annual frequency ofrainfall of 50 mm or more in one hour (Available only in Japanese)

Reference, web page: Meidensha IoT Disaster Prevention Monitoring Service(Available only in Japanese)
Reference, March 10, 2020 press release: Demonstration Experiment of a Floodand Inundation Response Support Service in Tsukubamirai City
Reference, April 21, 2020 press release: Commenced Demonstration Experimentof a Flood and Inundation Response Support Service in Tsukubamirai City
(Available only in Japanese)

79

Meiden Group Sustainability

Home Sustainability

Environment

Biodiversity

Environment

Biodiversity
PolicyPolicy on the Conservation of Biodiversity

The Meiden Group relies on the blessings of nature, which has biodiversity at its core, while its
activities also have an effect on the natural environment. The Meiden Group aims to minimize
this impact, create new symbiotic relationships, and contribute to the creation of a sustainable
society. The Meiden Group understands that the conservation of biodiversity is a major issue tobe faced in order to achieve a sustainable society, hence reflects its ethos on biodiversity
conservation in the Meiden Group’s “Basic Environmental Philosophy,” “Environmental Policies,”and “Environmental Vision.”
Furthermore, we have drafted guidelines on the conservation of biodiversity in order to clearlystate the relationship between our business activities and preserving biodiversity and we areapplying them in our business activities.

Meiden Group Biodiversity Guidelines
Basic Policy

We understand that our business activities benefit from the blessings of nature and at thesame time, give various environmental impacts. We will deepen our people’s understanding of
the importance of “Conserving Biodiversity” and contribute to realizing a sustainable society
through our products and innovative technologies.

Action Guidelines① We will contribute to conserving biodiversity through the development and supply ofenvironmentally conscious products and innovative related technologies and thus promote ourwater processing business and renewable energy-related business and reduction of the use ofhazardous chemical substances in our products.
② We will clarify how our business activities interrelate with biodiversity and we will help toconserve biodiversity by reducing the environmental impacts of our business activities.
③ We will comply with applicable laws, regulations, and international rules relating tobiodiversity.
④ We will deepen our people’s understanding of “Conserving Biodiversity” and we will takevoluntary related initiatives at home and abroad.
⑤ We will undertake activities in cooperation with our stakeholders such as local communities,
non-profit organizations (NPOs), non-governmental organizations (NGOs), governments, etc.,
and we will promote environmental communication with such activities’ information.
80

Meiden Group Sustainability

Map of Relationships Between Business Activities and Biodiversity* This map is based on the Business & Biodiversity Interrelationship Map® of the Japan
Business Initiative for Biodiversity (JBIB).
Initiatives

A Head Office Building That is Considerate of Biodiversity

The ThinkPark Tower head office building in Osaki, Shinagawa City, Tokyo, is surrounded by theThinkPark Forest on a block that is approximately 40% greenery. It is an oasis in the city andprovides a relaxing space for employees and the local community.
Also, the Kazenomichi Path, which was designed so that the prevailing wind blows from the
Meguro River and Tokyo Bay, provides relief from the heat island effect. ThinkPark Forest has
been certified as an “urban oasis” by the Social and Environmental Green Evaluation System(SEGES).** A certification system for evaluation of green initiatives.
SEGES

ThinkPark Tower

ThinkPark Forest

81

Meiden Group Sustainability

Initiatives at Each Site for the Conservation of Biodiversity

At each site of the Meiden Group, we are working to conserve biodiversity on the grounds ofeach site and nearby.

Head Office Area

Osaki – Fixed-point Observation

We hold events to appreciate sites in the green area (ThinkPark Forest) surrounding our head
office (ThinkPark Tower) and share this information throughout the Company.

Internal PR Pamphlet: Osaki – Site
Appreciation News

Ikimono Log (Living Nature Log)

In the head office area of Osaki, Shinagawa Ward, Tokyo, we take pictures of the organismsthat live in the vicinity of the head office building and post them on the Ikimono Log (Living
Nature Log) website operated by the Ministry of the Environment. We hope to create a
database with information on the organisms that live in the area.

Brown-eared bulbul

Warbling white eye

Asian swallowtail butterfly

Click here to view Ikimono Log.
82

Meiden Group Sustainability

Participation in Ohana Ippai Osaki Activities

At head office and a group company (Meiden Engineering Corporation), we prepared soil inflower beds near Osaki Station, which are managed by Osaki Machi Unei Kyougikai, along withco-sponsors. Going forward, we will continue to actively participate in activities that leaveabundant nature for future generations.

Numazu Works

The Numazu Works is blessed with the bounty of nature such as a green zone (area =approximately 65,000 m2) and groundwater. We are conducting activities to use these natural
resources in a sustainable manner and contribute to the community.

Tree Planting on the Rotary in Front of Numazu Station

In the tree-planting ceremony to grow Numazu forest, 13 employees planted 130 Satsuki
azaleas, donated by Meidensha to City of Numazu, on the rotary in front of Numazu Station.

Maintaining Biotopes

Through the survey of organisms, we discovered Atrocalopteryx atrata dragonflies, which areclassified as class II endangered species, at the Numazu Works. We are maintaining a good
biotope in the hope that the dragonflies will lay their eggs.

83

Meiden Group Sustainability

Numazu Machipika (Street Cleaning) Support Group

Meidensha participated in the Numazu Machipika (Street Cleaning) Support Group Program
conducted by Numazu City, and conducts street-cleaning activities in the areas around its sites.
The Numazu Works is located next to a river, and there is a risk of litter on the streets will flowout from the river to the sea. Cleaning-up activities prevent river waste from flowing into thesea and contribute to solving marine plastic waste problems.

Ota Works
Botanical Survey of On-Site Green Zone

At the Ota Works, we conducted an on-site botanical survey and found more than 30 varietiesof trees. We included the results of the survey on the Ota Works Green Zone Map and we will
apply the knowledge gained fur future utilization of the green zone.

Ota Works Green Zone
Map

Kanayama Red Pine Grove Conservation Activities

The red pine grove in Kanayama is the most well-known natural landscape in Ota City.
Kanayama Castle was created using the natural contours of Kanayama and it is a precious
historic site that is listed in the top 100 castles in Japan. The Ota works is registered as part of
the “red pine managing owner system” and we work to conserve the red pine grove byparticipating in activities such as weeding.

84

Meiden Group Sustainability

Elimination of Plastic Shopping Bags From the On-Site StoreThe problem of marine pollution caused by plastic waste has spread over a wide area, andthere is concern that it can adversely affect the ecosystem, living environment, fisheries,
tourism, etc. The use of plastic bags has been abolished since July 2020 at on-site shops in the
Meiden Group's Numazu and Ota works. Shops sell eco-bags instead of using plastic disposablebags at the checkout; and we educate all employees on the problem of marine plastics waste inorder for them to establish their custom carrying around their own bags.

The Biodiversity Working Group, the Four Electrical and Electronic
Industry Associations

Meidensha has participated in the Biodiversity Working Group, a group consist of four electricaland electronic industry associations*, since its inception in FY2011. As a member of theindustry, we are promoting our biodiversity initiatives through the activities of the working
group and enhancing our own efforts.
Click here to view information on the Electronic Industry Associations
Biodiversity Working Group.

* The Japan Electrical Manufacturers’ Association (JEMA), the Japan Electronics andInformation Technology Industries Association (JEITA), the Communications and Information
network Association of Japan (CIAJ), and the Japan Business Machine and Information System
Industries Association (JBMIA)

85

Meiden Group Sustainability

Home Sustainability

Environment

Promotion of Environmental Communication

Environment

Promotion of Environmental Communication
PolicyThe Meiden Group engages in two-way communication with all our stakeholders, which is
intrinsically linked to the development of our environmental activities. We also actively disclose
information on our activities and their results.
Initiatives

Promotion of Environmental Communication

The Meiden Group is working to create relationships of trust in order to remain to be acompany that is needed by society.
We actively release information concerning our environmental conservation activities andenvironmental impact through our website. We reflect the opinions and needs expressed by our
stakeholders in the Meiden Group’s environmental activities and environmental training.

Environmental Communication

86

Meiden Group Sustainability

FY2020 Initiatives

Guess Ii! Project on Future Disaster Preparedness Wins FY2020 GKP PR Awards
Grand Prize
Meidensha was awarded the 2020 GKP Public Relations Awards (held by Gesuido Koho
Platform or “GKP”) Grand Prize.
This award is a commendation system started by GKP in 2013, whose purpose is to widely
discover and commend excellent public relations activities that improve the value of sewerage
infrastructure, and to disseminate them widely in the sewerage industry.
The award-winning project is “Guess Ii! Project” (project on future disaster preparedness fromthe perspective of the sewerage system) jointly conducted by Meidensha, TOA GROUT KOGYO
CO.,LTD., and The Asahi Shimbun Company in FY2019.
This project aims to help young people learn about the importance of sewerage, and has been
implemented in the form of a delivery class where university students with educational training
experience learn about the role and value of sewerage, and then teach it to high school
students. With this initiative, high school students not only learn about the role and importanceof sewerage systems, but they also gain a sense of involvement by identifying issues facing
sewerage systems and proposing solutions to companies. This initiative received the award for
creating a framework that produces a “chain of communication” from university students tohigh school students and being able to spread through social media, etc.
Meidensha’s corporate mission is “illuminating a more affluent tomorrow,” and we will continue
activities to convey the importance of social infrastructure to the next generation.

Group photograph of attendees
Giving a presentation■ Recipients’ Comments (Meidensha and TOA GROUT KOGYO CO.,LTD.)We are deeply grateful to have been received the esteemed prize at the GKP Public Relations
Awards.
This cooperative PR project by our companies transcended generations and industries. We aredelighted that our endeavors, which involved sharing knowledge among different age groups,
were deemed worthy of this prize. In this fiscal year, we remain engaged in online activities thatshare information and happiness among people of many ages.

87

Meiden Group Sustainability

Home Sustainability

Environment

Foster Environmental Awareness

Environment

Foster Environmental Awareness
PolicyThe Meiden Group believes that increasing each person’s environmental awareness leads toenvironmental contributions to society.
Initiatives

Foster Environmental AwarenessWe conduct education relating to environmental initiatives such as environmental management
and environmentally conscious design as part of the regular curriculum for employee
education, which is conducted for each level of employee such as new employees, newmanagers, and candidates for executive roles.
Furthermore, we promote environmental activities at each site, conduct internal auditor
education, etc., for personnel that are involved with work that impacts the environment, andconduct specialist education as necessary.

Environmental Education (e-learning) for All Group Employees

Each year, we conduct environmental education for all employees of the Meiden Group throughe-learning. In FY2020, we conducted environmental education with the theme of “The ocean
plastic waste pollution problem and the Meiden Group’s initiatives.” Of the Meiden Group’s
employees, 83.6% attended online, and materials were circulated to those who missed it.
This was an opportunity for all employees of the Meiden Group to think about the problem ofocean plastic waste pollution, and the attendees shared the following opinions and impressions.
<Examples>
It is necessary for the Company to engage in the 3Rs for materials.
It may be a new business opportunity to turn ocean waste collection technology for theSDGs.
The main cause of marine pollution may not be plastic bags, but waste dumping and otherproblems.

88

Meiden Group Sustainability

Promoting Acquisition of Certification Test for Environmental Specialists (EcoTest) ® Certification

We promote acquisition of Certification Test for Environmental Specialists (Eco Test)®
certification provided by the Tokyo Chamber of Commerce and Industry, and provide support
for examination costs and provide sample questions, etc., through e-learning. In the December
test in FY2020, our pass rate was over 95% and we have 1,013 Eco Test certification holders
including loan employees as of March 2021.
* Eco Test® is a registered trademark of the Tokyo Chamber of Commerce and Industry.

Specialist Education

We conduct specialist education as necessary at each site, conduct internal auditor education,etc., for employees that promote environmental activities or are involved with work that impacts
the environment. In FY2020, we conducted education concerning SF6 gas at factories. We also
conducted education for the Sales Business Unit concerning management of chemical
substances in products (RoHS directive, REACH regulations, etc.).

Education Concerning Environmental Laws

We conduct education of environmental laws and regulations as part of our compliancetraining. In FY2020 we held lectures concerning Waste Management and Public Cleansing Act(Waste Disposal Act), the Air Pollution Control Act, the Water Pollution Prevention Act, etc. We
provide our employees with opportunities to recognize the importance of compliance by
explaining cases of legal violations.

89

Meiden Group Sustainability

Environmental Management Seminars for Management-Level Employees

Each year, we invite outside experts to hold environmental management seminars for management.
Date
Theme
Instructor (affiliation, role, etc., are those at thetime)
12/21/2017 Increasing
Toshihiko Goto
expectations for
CEO of Sustainability Forum Japanenvironmental
Chairperson and executive director of Global Compact
management: ESG Network Japan
investment, SDGs,
and TCFD
recommendations todisclose climaterelated financial
information, etc.
12/21/2018 Toward the utilization Yoriyuki Numakuraof SDGs
Manager of KPMG AZSA Sustainability Co., Ltd.
06/21/2019 Trends in ESG
Mari Yoshitaka
investment andChief Consultant, Clean Energy Finance Division,
information
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
disclosure: TCFD
recommendations
12/11/2020 The Meiden Group’s Yoshihisa Niwa
CO2 reduction plan Managing director and partner of the Boston
to achieve SBTs
Consulting Group
Shoji Hajime
Managing director and senior partner of the Boston
Consulting Group
Makoto Morihara
Principal of the Boston Consulting GroupFY2020 environmental management
seminar90

Meiden Group Sustainability

Home Sustainability

Environment

Overview of Environmental Impacts by Our Business Activities

Environment

Overview of Environmental Impacts by Our Business Activities

The Meiden Group finds out the overview of environmental impacts by our business activities
and uses this information to plan specific activities.

Overview of Environmental Impacts by Our Business Activities(FY2020)

Our rate of use of major resources (INPUT) and our environmental impacts from our businessactivities (OUTPUT) are shown below.

91

Meiden Group Sustainability

92

Meiden Group Sustainability

Home Sustainability

Environment

Environmental Impact Data (FY2020) From the Four Main Manufacturing Sites (Domestic Manufacturing S

Environment

Environmental Impact Data (FY2020) From the Four Main
Manufacturing Sites (Domestic Manufacturing Sites)
Numazu Works

Message From the Environmental Manager
The Numazu Works is the main factory of the Meiden Group and conducts development,
design, and manufacture of monitor and control equipment, power conversion equipment,
substation equipment, motor speed control equipment, electronic devices, and surge arresters,
installation of control devices, development of unit software, and on-site installation, and aftersales service for products.
In FY2020, we reduced environmental impact through increased productivity, in spite of the
COVID-19 pandemic. We particularly focused on tightening management of SF6 gas, which is ahighly potent greenhouse gas. With regard to the use of SF6 gas, we immediately consider
alternatives and strive to prevent global warming.
Numazu Works, Environmental Manager, Masanori Fukumoto
Environmental Impact Data (FY2020)

93

Meiden Group Sustainability

Ota Works

Message From the Environmental Manager
The Ota Works conducts development and manufacture of large electric generators, power
generation equipment, dynamometer systems, and control equipment, etc.
In addition to previous environmental activities, this fiscal year, we considered procurement ofCO2-free electricity that is produced and consumed within Gunma Prefecture, and wecommenced said procurement in April 2021. In this way, electricity consumption by Ota Works
produces net zero CO2 emissions. Going forward, we will promote activities to reduce ourenvironmental impact in order to achieve SDGs.
Ota Works, Environmental Manager, Manabu Fujikawa
Environmental Impact Data (FY2020)

94

Meiden Group Sustainability

Nagoya Works

Message From the Environmental Manager
The Nagoya Works develops and manufactures logistics transportation products, and ceramic
membranes used for water treatment.
In FY2020, we commenced operation of a manufacturing plant for integrated motor/inverters
Inverter-Integrated Motor Units for EVs. As the rate of decarbonization is increasing andtechnology for electrification, computerization, and artificial intelligence of electric vehicles is
evolving rapidly, Nagoya Works is focusing on electrification and will contribute to society
through future automation of automobiles.
Nagoya Works, Environmental Manager, Tomohisa Asakura
Environmental Impact Data (FY2020)95

Meiden Group Sustainability

KOFU MEIDENSHA ELECTRIC MFG. CO., LTD.

Message From the Environmental Manager
Since its foundation in 1943, KOFU MEIDENSHA ELECTRIC MFG. CO., LTD. has been
manufacturing small and medium-capacity industrial motors and forklift motors, and has been
manufacturing EV motors since 2009.
In FY2020, we commenced operation of a new factory for EV motors as an environmentallyconsiderate factory with solar panels and insulating glass.
Kofu Meidensha, Environmental Manager, Makoto Nakazawa
Environmental Impact Data (FY2020)

96

Meiden Group Sustainability

Home Sustainability

Environment

Third-Party Verification

Environment

Third-Party Verification

In order to ensure that we release accurate and reliable
environmental performance data for FY2020, we have undergone
an assessment by Bureau Veritas Japan Co., Ltd.

Verified Greenhouse Gas Emissions
Greenhouse gas emissions[t-CO2e]
Scope 1
16,161
Scope 2
24,479(location basis)
23,490(market basis)
Scope 3 (Category 796,523
1)

Scope of calculation
CO2 (including emissions from use of
automotive fuel), HFC, HCFC, and SF6
emissions from energy used for the businessactivities of Meidensha and 23 domestic
Group companies during the period from
April 1, 2020 to March 31, 2021.
Category 1 emissions (scope of calculation isbased on Meidensha’s determination) fromthe business activities of Meidensha during
the period from April 1, 2020 to March 31,
2021.
Evaluation of the reliability and adequacy ofCategory 11 emissions (scope of calculation
is based on Meidensha’s determination) fromthe business activities of Meidensha during
the period from April 1, 2020 to March 31,
2021 through review.

(Category 5,183,413
11)

97

Meiden Group Sustainability

Assessment Standards

ISAE3000: International Standard on Assurance Engagements (ISAE) 3000
ISO14064-3: Specification with guidance for the validation and verification of greenhouse gas
assertions

98

Meiden Group Sustainability

Home Sustainability

Environment

Issue of Green Bonds

Environment

Issue of Green Bonds

In July 2019, we issued green bonds through public offering for the purpose of funding massproduction equipment for Motors and Inverters for Electric Vehicles.
In June 2018, Meidensha pledged to reduce greenhouse gas emissions by 30% by fiscal 2030
(compared to fiscal 2017 levels) and as part of the First Meiden Environmental Vision and weare promoting reduction of environmental impact. Furthermore, we understand that
contributing to the achievement of sustainable development goals (SDGs) is a major
management issue facing the Company and we are promoting the environmental contribution
business by rolling out environmentally conscious products and services.
By issuing green bonds, we plan to expand our capital procurement resources and deepen theunderstanding of a wide range of stakeholders regarding our active environmental initiatives.

Meidensha Green Bonds
OutlineName of bonds"Meidensha Corporation 2nd Series Unsecured Straight Bonds (withpari passu agreement limited to corporate bonds) (Green Bonds)"
Also known as
Meidensha Corporation Green Bonds
Maturity
5 years
Total amount of issue 6.0 billion yen
Coupon rate
0.260％
Issue price
100 yen for each 100 of corporate bonds
Date of issue/date of July 23, 2019 to July 23, 2024
maturity
Redemption method Bullet payment at maturity
Subscription method Open invitation
Security/guarantee Unsecured and non-guaranteed
RatingBBB+ (Japan Credit Rating Agency, Ltd./Rating and Investment
Information, Inc.)
Use of proceeds
To provide partial funding of enhancement of mass-production
facilities for electric vehicle components
Lead managing
SMBC Nikko Securities Inc.
underwriter
99

Meiden Group Sustainability

Green Bond
Structuring Agent
Principles with whichto confirm
compliance

SMBC Nikko Securities Inc.
Climate bond standard version 2.1
Low Carbon Transport (Land) Standard Version 1.0 (CBI)Green Bond Principles 2018 (ICMA)
Green Bond Guidelines 2017 Edition (MOE)

List of investors that have declared their investment in corporatebonds(As of July 17, 2019 in alphabetical order)
Aichi Shinkin Bank
Daitokyo Shinyokumiai
Fukoku Mutual Life Insurance Company
Hanno-Shinkin BankJA Bank Fukuoka
JA Bank Ibaraki
JA Bank Iwate
Kameari Shinkin Bank
Kesennuma Shinkin Bank
Kiryu Shinkin Bank
Kitami Shinkin Bank
Meiji Yasuda Asset Management Company Ltd.
Sugamo Shinkin Bank
Sumitomo Mitsui DS Asset Management Company, Limited
Sumitomo Mitsui Trust Asset Management Co., Ltd.
Taiyo Life Insurance Company
THE BANK OF NAGOYA, LTD.
THE DAIDO FIRE AND MARINE INSURANCE COMPANY LIMITEDTHE KAGAWA BANK, Ltd.
THE TOWA BANK, LTD.
Tokio Marine & Nichido Fire Insurance Co., Ltd.
Tokio Marine Asset Management Co., Ltd.

100

Meiden Group Sustainability

External Evaluation of ComplianceGreen bond framework

Meidensha Green Bonds are issued and managed according to the Green Bond Framework
developed in accordance with the Green Bond Principles 2018*1 drafted by the International
Capital Market Association, the Green Bond Guidelines 2017*2 Edition drafted by the Ministryof the Environment, and the Climate Bond Standard Version 2.1*3 drafted by the Climate
Bonds Initiative (CBI).

Second-party opinion and ratings

Compliance with these green bonds is assessed by the Japan Credit Rating Agency (hereinafterJCR) according to the JCR Green Bond Evaluation, and the bonds received a rating of Green 1,
which is the highest rating, as they fulfilled the Green Bond Principles 2018 and the Green
Bond Guidelines 2017.
JCR green bond assessment attached

Verification

DNV GL Business Assurance Japan K.K. (DNV GL), one of the world's leading organizations toevaluate and accredit the ESG performance, has verified that Meidensha Green Bonds cleared
the requirements in the Climate Bonds Standard Version 2.1 as well as related technologicalstandards.
Pre-assessment report issued by DNV GL

Certification

Meidensha has received certification from Climate Bonds Initiative (CBI), an international
nongovernmental organization dedicated to promoting large-scale investments to realize a lowcarbon society that sets stringent standards for the issuance of such bonds. Meidensha is thefirst Japanese private enterprise to receive the CBI certification.
Additionally, JCR and DNV GL has received the notification of Green Finance Organization
JAPAN’s decision to grant as subsidy as part of the Financial Support Programme for Green
Bond Issuance of MOEJ’s FY 2018*4.

101

Meiden Group Sustainability

Green bond framework
1. Use of Proceeds

Eligible green project: Equipment for mass production of electric vehicle components
Outline of facility expansions(Total investment: Approx. 7 billion yen)
Nagoya Works: Renovation of existing buildings and introduction of new facilities
Location
496 Ittangosewari, Nishibiwajimacho, Kiyosu City, Aichi
Prefecture
Parts to be produced
Inverter-Integrated Motor Units for EVs
Start of operations
Scheduled for November 2019
Total floor space
4,620m2
Production capacity
Maximum annual production of 170,000 units
Kofu Meidensha Electric Mfg. Co., Ltd.: Construction of new building and introductionof new facilities
Location
825 Nakadate, Chuo City, Yamanashi Prefecture
Parts to be produced
Motors for EVs
Start of operations
Scheduled for November 2019
Total floor space
2,660m2
Production capacity
Maximum annual production of 170,000 units
Numazu Works: Expansion of facilities
Location
515 Kaminakamizo, Higashimakado, Numazu City, Shizuoka
Prefecture
Parts to be produced
Inverters for EVs
Start of operations
Scheduled for April 2019
Total floor space
240m2
Production capacity
Maximum annual production of 120,000 units

2. Process for Projects Evaluation

Nominated green bond projects were selected and evaluated by Meidensha Accounting &Financing Group Financing Division, after the consideration of conformity to qualified criteria,
102

Meiden Group Sustainability

based on the Group's management philosophy, environmental vision, and CSR critical issues.
Final approval of the project selection is implemented by the director of treasury executives of
the company decision making committee. Furthermore, we also conduct verification of negativeenvironmental impact of eligible projects.

3. Management of Proceeds

The proceeds from the Green Bonds will be fully allocated to eligible projects and assets andtracked. Fund allocation will be implemented in one year after bond issuance. The proceeds will
be managed by the Meidensha Accounting & Financing Group Financing Division. The proceeds
outstanding balance will be managed by internal Meidensha forms (earmarked by numbering)and its budget and actual expense tracked with Meidensha internal protocol (accounting
management scheme) quarterly. These will be requested to receive approval from the
Meidensha General Manager of Financing Division to avoid deviation (financial outflow).
Meidensha also manages the preservation of documents related to cash management by using
the accounting document retention term list and through the accounting regulations of
Meidensha concerning the scope and preservation of accounting documents.
Until the allocation of procurement funds is decided, we will manage cash or cash equivalents
equal to funds.

4. Reporting

Funding status reporting

We will report the status of funding once a year until the full amount of funds to be procured isapplied to projects that meet qualified criteria. Disbursement status disclosed is as follows: (1)Amount of funds appropriated, (2) Approximate amount or ratio in case of unappropriatedfunds, operation schedule of allocated time, and unappropriated period, (3) Estimated amountor percentage when the refund is applied.
We will disclose in a timely manner if there is a major change in the procurement funding planor when there is a significant change in the fund status after the procurement funds havestarted to be appropriated.

Impact reporting

Until Green Bonds are redeemed, the following indicators showing the progress status ofqualified projects funded and the environmental improvement effect are scheduled to bedisclosed once a year on our website.
KPI in Impact Reporting: Annual CO2 emission reduction from eligible projects*5*1 The guideline regarding green bond Issuance is written by Green Bond Principles Executive
Committee which is facilitated by ICMA (International Capital Market Association.)*2 MOEJ (Ministry of the Environment of Japan) has established “the Green Bond Guidelines,
2017” in March 2017 with the purpose of spurring issuances of Green Bonds and investmentsin them in Japan. The Guidelines, with due consideration to the consistency with the GBP, which
is widely accepted in the Green Bond markets in the world, provide issuers, investors and othermarket participants with illustrative examples of specific approaches and interpretations
103

Meiden Group Sustainability

tailored to the characteristics of the Japan's bond market which will aid these market
participants to make decisions on working-level matters related to Green Bonds.
*3 Climate Bonds Standards (CBS) is a standard developed by Climate Bonds Initiative (CBI),
the UK’s international nongovernmental organization, which includes certification process, preissuance and post-issuance requirements and sectoral eligibility and guidance. And is aimed
with the objective of “Ensuring credibility and transparency of Green Bond’s contribution to theenvironment. CBS imposes a sectoral standard, and it is necessary to meet the applicablesectoral standard in judging the eligibility of projects and assets covered by the green bond.
*4 A program where subsidies will be provided for the expenses that are required by those who
support companies, municipalities and other bodies who seek to issue Green Bonds, in the formof granting external reviews, consultation on establishing a Green Bond framework, etc.
(1) A Green Project that meets one of the following criteria:
1. Contributes mainly to domestic decarbonization (renewable energy, energy efficiency,
etc.)
Projects for which equal to or more than half of the procured amount, or equal to or
more than half of the number of projects is domestic decarbonization-related
project.
2. Has high decarbonization and effects on vitalization of local economy
Decarbonization effects Those whose subsidy amount per ton of domestic CO2
reduction is less than the specified amount.
Effects on vitalization of local economy Projects that are expected to contribute toeffects on vitalization of local economy as part of the ordinance and plan, etc.
decided by the municipality, projects for which investment by municipalities can be
anticipated, etc.
(2) Compliance with the Green Bond Guidelines to be confirmed by an external review
organization before issuance.
(3) It cannot be “Green wash” bonds.
*5 The formula for calculation differs from Meidensha’s calculation of environmental
contribution and CO2 emissions reduction, which are stated under Meidensha’s environmental
targets, as they are calculated according to the ICMA Green Bond Principles 2018, the MOE
Green Bond Guidelines 2017, the CBI Climate Bond Standard Version 2.1, and the Low Carbon
Land Transport and the Climate Bonds Standard (v1.0).
This content is provided for the sole purpose of publicly announcing the Company’s
issuance of the Bonds, and not for the purpose of soliciting investment or engaging in any
other similar activities within or outside of Japan.

104

Meiden Group Sustainability

Home Sustainability

Corporate Governance

Sustainability

Corporate GovernanceCorporate GovernanceRisk Management

Compliance

105

Meiden Group Sustainability

Home Sustainability

Corporate Governance Corporate GovernanceCorporate GovernanceCorporate Governance
PolicyBasic Approach

Under our corporate mission of “illuminating a more affluent tomorrow” and our corporate
philosophy of providing the value “for customer peace of mind and satisfaction,”our group ofcompanies takes the basic stance that we maintain fair and steady business activities withrespect for people and the global environment, operate businesses focusing on profit whileconstantly pursuing new technology and high quality, and endeavor to contribute to prosperityof society. In order to implement this basic stance, we formulated the “Basic Policy to Improve
the Governance to Secure Fair Business Practices” at the regular Board of Directors’ meeting
held in May 2006, and revised it at the Board of Directors’ meeting held in June 2020, in
accordance with the transition to a company with an Audit & Supervisory Committee, andfurther enhancement of the internal control promotion system.
The Company will work to further improve the fairness, efficiency, and transparency ofmanagement by promoting initiatives to enhance corporate governance in accordance with the
Corporate Governance Code.
Organization and Initiatives

Corporate Governance Structure and Initiatives

The Company transitioned to a company with an Audit & Supervisory Committee in June 2020
for the following purposes, in order to further strengthen corporate governance. The main
purposes of transitioning to a company with an Audit & Supervisory Committee are as follows.
(a) In order for the Directors who are members of Audit & Supervisory Committee having
right to vote in the Board of Directors as well as having the right to express position
statement on nomination and compensation at meetings of shareholders to further
enhance the supervisory function by utilizing the legal authority.
(b) In order to further enhance discussions on management strategies, etc. by transferring
the Board of Directors’ meeting to a monitoring type, since a portion of the Board of
Directors' authority to make decision on business execution has been transferred to the
executive directors (Executive Officers' Meeting).
(c) In order to enhance supervisory functions to ensure appropriate corporate governanceand fundamental management policy decisions while enhancing flexible and agile
business execution along with the executive officer system introduced in June 2003, in
combination with transition of authority mentioned in the previous section.

106

Meiden Group Sustainability

Corporate Governance Structure: Supervision and Management and Internal Control
SystemOutline of Corporate Governance Structure
Form of
Organization
Directors
Directors (Audit &Supervisory
Committee
Members)
Number of
Independent
Officers

Company with an Audit & Supervisory Committee
Number of directors (outside directors): 9 (2)Number of directors (outside directors): 5 (3)
5 (2 outside directors and 3 outside directors (Audit & Supervisory
Committee members))(1) The Company’s Board of Directors

In principle, the Board of Directors convenes on a regular monthly basis and holds ad-hoc
meetings as necessary, to discuss major executive matters, business issues, and management
issues related to the Company's business execution. In fiscal 2020, the Board of Directors held
13 meetings, and the attendance rate of each director, apart from one, was 100% (theattendance rate for one director was 92.3%).

107

Meiden Group Sustainability

① Composition of Board of Directors

The Company's Board of Directors consists of 14 Directors, including five directors who are
Audit & Supervisory Committee members, and five Outside Directors, including three Audit &Supervisory Committee members.
In order to ensure the effectiveness of the supervisory functions of outside directors, theCompany attempt to ensure that at least one-third of the Board of Directors meets theCompany's Criteria for Determining the Independence of outside directors.
Meidensha’s outside directors satisfy the requirements of independent directors as stipulated
in the rules of the Tokyo Stock Exchange.

② Policy for Appointment of Candidates for Director and Appointment/Dismissal
Process

The basic policy for the appointment of directors of the Company is to ensure the diversity of
the Board of Directors as a whole and to balance the expertise required of the Company’s
Board of Directors with the awareness, experience, and abilities of individual Directors.
The basic policy for the appointment of directors who are Audit & Supervisory Committee
members is to ensure overall diversity of directors who are Audit & Supervisory Committee
members and a balanced composition, according to knowledge and experience, etc., relating toaccounting, finance, and law, etc. The number of directors is stipulated as a number that is
sufficient to fully deliberate on management issues, with an upper limit of 15 members.
Based on the above, we conduct a nomination of candidates for director that will contribute to
the enhancement of the Board of Directors decision-making function and oversight function,
by resolution of the Board of Directors, with advice from the Nomination and Compensation
Committee* (voluntary committee), which is chaired by an independent outside director. The
candidates are then presented at the General Meeting of Shareholders. Furthermore, withregard to the dismissal of directors, if it is discovered that a director has breached the law or
the Articles of Incorporation, or committed acts that flagrantly breach the director’s nomination
policy, the Board of Directors will take the necessary steps to dismiss said director with theadvice of the Nomination and Compensation Committee.
* Meidensha established a voluntary Compensation Committee in December 2017. In December
2018, the Committee took on the functions of a voluntary nomination committee to become
the Nomination and Compensation Committee. The Nomination and Compensation Committee
is chaired by an independent outside director and is comprised of two outside directors, thechairman of the Board of Directors, and the president of the Board of Directors.

③ Executive Officer System and Executive Structure

Meidensha introduced an executive officer system in June 2003 in order to streamline theBoard of Directors, as well as to accelerate management decision-making and to enhancesupervisory functions. At the same time, we sought to reinforce the functions of the Board of
Directors by promoting the separation of the decision-making authority and supervisory
function from the business performance function held by the Board of Directors.
Executive officers selected by the Board of Directors assume responsibility for the execution of
specified tasks within the scope of authority transferred by the Executive Officers' Meeting and
the President, and nimbly perform executive functions under the supervision of the Board of108

Meiden Group SustainabilityDirectors, each director and the Executive Officers' Meeting, in accordance with the Meiden
Group’s management policies determined by the Board of Directors.
The Executive Officers' Meeting, which comprises executive directors and executive officers
with specific roles, is created for executive decision-making, and decides matters based on therules of internal approval, as well as matters for which consultation from a full-company
perspective is required.
Furthermore, apart from the meeting body to make decisions, we established advisory andinternal bodies such as review and strategy meetings, and with regard to importantmanagement matters, we created a system wherein thorough discussion and deliberation are
conducted prior to decision-making, and follow-up strategy and planning and improvement
initiatives are conducted following decision-making. The outline and main points of theproceedings at the Executive Officers' Meeting and other internal meetings are reported as thestatus of business execution at the Regular Board of Directors’ meetings to ensure andimprove the effectiveness and supervisory functions of the Board of Directors. As to executebusiness, executive directors and executive officers with the authority are taking attempt
initiatives agilely by making resolutions and settlements. In this way, we are working to conduct
executive functions autonomously and nimbly.
With the transfer of a portion of authority for business execution from the Board of Directors
to the executive directors and executive officers, officers and executive officers must submit abusiness execution status report to the Board of Directors at least once every three months inorder to ensure the effectiveness of functional supervision by the Board of Directors.

(2) Effectiveness Evaluation of the Board of Directors

Meidensha has a mechanism in place to conduct an analysis and evaluation of the effectivenessof the Board of Directors in order to strengthen the supervisory function of the Board of
Directors. With regard to the activities of the Board of Directors in fiscal 2020, all members of
the Board of Directors, including outside directors, conducted self-evaluations of theeffectiveness of the Board of Directors, and the following discussions took place at the meetingof the Board of Directors in May 2021.
i Items EvaluatedComposition and operation (resolution and deliberation methods, etc.) of the Board of
Directors, self-evaluations concerning effectiveness of the Board of Directors, evaluation ofrevision to the standards for matters to be resolved by the Board of Directors after transition
to a company with an Audit & Supervisory Committee, other opinions
ii Outline of Analysis and Evaluation Results
The results of the evaluation of each director were collected, and after deliberation by the
Board of Directors, it was determined that the quality of operation and deliberation is sufficient,sufficient opinions and advice have been received from outside directors, and the effectivenessof the Board of Directors is currently secure.
In addition, in the course of evaluation, we promoted the transition of the Board of Directors toa monitoring type and reaffirmed the policy to further enhance the supervisory function of theBoard of Directors through the delegation of major executive functions and establishment ofinternal decision-making and supervision rules.
109

Meiden Group Sustainability

Going forward, we will continue to promote initiatives to further increase the effectiveness of
the Board of Directors, such as deepening understanding of the Company’s businessenvironment and strategy, through measures including the advance explanation andconsultation regarding agenda items of the Board of Directors discussed below, training for
newly appointed outside directors, and providing ongoing opportunities for discussion, in orderto determine issues identified through analysis and evaluation.

Composition of the Board of Directors, Nomination & Compensation Committee, andAudit & Supervisory Committee and FY2020 Attendance(Period: April 1, 2020 to March 31, 2021)
Name

Position (as of March 31,
2021)

Yuji
Hamasaki

Representative Director,
ChairmanMember of Nomination andCompensation Committee
Representative Director,
President
Member of Nomination andCompensation Committee
Representative Director,
Executive Vice President
Director, Executive Vice
President
Director, Senior Managing
Executive Officer
Director, Senior Managing
Executive Officer
Director, Senior Managing
Executive Officer
Outside Director
Member of Nomination andCompensation Committee
Outside Director
Member of Nomination andCompensation Committee
Director (Standing Audit &Supervisory Committee

Takeshi
Miida
Masamichi
Kuramoto
ShosukeMori
Nobutoshi
Ohashi
Norio
Takekawa
Nobuaki
TamakiHiroyuki
Takenaka
Junji Yasui
Tadayoshi
Machimura

Board of Nomination & Audit andDirectors Compensation Supervisory
Committee Committee(13 / 13) (4 / 4)
－
〇

110

(13 / 13)

(4 / 4)－(13 / 13)－－

(13 / 13)－－

(13 / 13)－－

(13 / 13)－－

(13 / 13)－－

(12 / 13)

(4 / 4)〇－(13 / 13)

(4 / 4)－(10 / 10)－(11 / 11)〇
Meiden Group Sustainability

Member)
Taketora Ito Director (Standing Audit &(13 / 13) －(11 / 11)Supervisory Committee
Member)Yoshiaki Outside Director (Audit &(13 / 13) －(11 / 11)
Shin
Supervisory Committee
Member)Mitsuru
Outside Director (Audit &(13 / 13) －(11 / 11)
NawataSupervisory Committee
Member)Keiko
Outside Director (Audit &(10 / 10) －(11 / 11)
HayashSupervisory Committee
Member)
Note 1: Refers to the chair of the Board of Directors, Audit & Supervisory Board, and eachcommittee
Note 2: Attendance of each type of meeting is marked (Attendance / Holding)Training for Officers
Legal training is conducted for officers on an annual basis, for the purpose of improving theeffectiveness of the Board of Directors and internal control.
In fiscal 2020, we conducted training for our officers by outside instructors, relating tocompliance in relation to overseas bribery and harassment, as part of internal control activities
conducted at all companies. The Meiden Group conducted trainings on the Companies Act for
new officers of Meidensha and affiliated companies.

(3) Initiatives to Utilize Outside Directors

Meidensha seeks active participation in management by outside directors, in order to enhance
the supervisory function of the Board of Directors. As such, we are conducting the following
initiatives to ensure free and active debates.
i Advance Explanation of Agenda Items of the Board of Directors
We give explanations in advance so that directors are able to confirm the content of agenda
items prior to participating in meetings of the board of directors. Our system allows us toaccept questions, etc., relating to the content of agendas in advance and prepare an
explanation to be given at the meeting of the Board of Directors, and this revitalizes andenriches deliberations.
ii Matters for Discussion by the Board of Directors
In addition to agenda items and reporting matters of the Board of Directors, we take up
matters concerning our basic management plans, such as the Medium-term Management Plan
111

Meiden Group Sustainability

and major themes required of a company with an audit & supervisory committee, and discusstracing, etc., as matters for consultation.
We will leverage the knowledge of outside directors to facilitate active exchange of opinions
concerning the Company’s management issues and strategies, as well as corporate
governance, and use this as an opportunity to build consensus at the planning stage, prior toresolutions by the Board of Directors.
iii Timely and Appropriate Sharing of Information
Besides the agenda for the meeting, Meidensha provides briefings on current topics relating to
the company at meetings of the Board of Directors, with the aim of timely and appropriate
sharing of information with outside directors, so that they can share the status of the Company
in a timely fashion.
iv Training for New Directors
We create opportunities to explain the Company’s business and structures, primarily to aid theunderstanding of newly appointed outside directors.
The officers or general managers in charge of each business explain their business, group-wide
themes, and Meidensha’s governance system to the outside directors, answer their questions,and exchange opinions with them.

(4) Auditing System

The Company transitioned from the prior institutional structure of a company with an Audit &Supervisory Board to a company with an Audit & Supervisory Committee at the Annual General
Meeting of Shareholders held on June 26, 2020. The Audit and Supervisory Committee
consists of five directors, including three outside directors, who are Audit & Supervisory
Committee members, and there is also a Support and Advisory Division for Audit andSupervisory Committee has been established as a staff organization to support the Audit andSupervisory Committee. The committee communicates with directors, the Internal Auditing
Division, and other related divisions, while adhering to the auditing policies, allotted duties, andauditing rules, etc., for Audit & Supervisory Committee members stipulated by the Audit &Supervisory Committee. Committee members attend meetings of the Board of Directors andother important meetings, and audit the execution of directors’ duties through investigations ofbusiness and financial conditions.
Directors who are Audit & Supervisory Committee members are granted authority, such as
voting rights at meetings of the Board of Directors and the right to present a position
statement at meetings of the Board of Directors relating to nomination and compensation of
officers. We are therefore promoting the establishment of an auditing framework and theenhancement of various initiatives to further strengthen the supervisory function of the Boardof Directors, which is the aim of altering our institutional design, through new activities such as
monitoring and auditing, etc. of the transfer of authority to executive directors and the statusof the governance that guarantees it, in addition to auditing activities, and by further
strengthening cooperation with outside directors, etc.

112

Meiden Group Sustainability

(5) Internal Auditing System

The Internal Auditing Division conducts internal audits to check the effectiveness and efficiencyof business operations, the reliability of financial reporting, the status of compliance with laws
and regulations, and the maintenance of assets, covering the Company and all Group
companies at home and abroad.
Since fiscal 2018, we have conducted risk management using control self assessment (CSA) ateach Meidensha factory and each Japanese subsidiary in order to enhance internal control andincrease the efficiency of risk audits at each business unit.
In April 2020, we improved the framework for promoting internal control by establishing theGroup for Promotion of Internal Control. The Enterprise Risk Management Division establishes
risk management systems integrating the entire group, and promotes enhancement of internal
control functions through joint monitoring of internal control systems by the Audit &Supervisory Committee and the Internal Auditing Division. In fiscal 2020, we conducted new
standardized audits using audit standardization tools as new initiatives to improve thecomprehensiveness of audits. Going forward, we aim to expand standardized audits todomestic and overseas subsidiaries and ensure that they are sustained.
In fiscal 2021, we are transitioning from rotating audits to a risk approach. We are developing arisk-based annual auditing plan, which will comprehensively cover all companies and prioritize
high-risk areas.

(6) Strengthening Group Governance

The Meiden Group is working to continuously strengthen group governance by developing
basic policies based on the “Basic Policy to Improve Governance Structure to Secure Fair
Business Practices” at each Meiden Group company, establishing a regulatory framework, andimplementing the PDCA cycle.
1. Establishing a Framework(1) Meidensha’s Board of Directors has established the Corporate Policy Planning Group, theOverseas Business Strategic Management Group, and the Enterprise Risk Management
Division of the Group for Promotion of Internal Control as group-wide management
organizations, and created a system for Group companies to report to Meidensha.
(2) There is a system to dispatch general officers or non-standing officers from Meidensha toGroup companies to oversee the operations of said Group companies.
(3) Meidensha dispatches non-standing auditors to major domestic Group companies tostrengthen audits.
(4) Meidensha’s Internal Auditing Division conducts audits to ensure appropriate businesspractices at each Group company.
2. Main Initiatives in Fiscal 2020
(1) The Compliance Committee met once in each half of the fiscal year, and in the second
half, we looked back on previous compliance promotion activities, including group-wide
compliance training, reaffirmed the significance and effectiveness of each activity, andconfirmed that we will continue and develop each activity.
(2) We established the Enterprise Risk Management Division of the Group for Promotion ofInternal Control as a department to promote group governance and drafted the Basic
Risk Management Regulations.
113

Meiden Group SustainabilityWe established a new Internal Control Committee at each Group company, and shared
information concerning the main risks faced by the Meiden Group in order to ensure thefullness of the risk management system.
(3) At the Overseas Strategy Meeting held once each year, we worked to establish areporting system for subsidiaries as an opportunity to share the main risks faced byoverseas subsidiaries, and consider and thoroughly implement measures.
(4) The Internal Auditing Division conducted internal audits of three domestic subsidiaries
and 16 overseas subsidiaries, commenced new standardized audits using audit
standardization tools, and worked to increase the comprehensiveness of audits,
particularly for some overseas subsidiaries.

Officers’ Compensation

Directors compensation policy

i Level and System of Compensation
The level of compensation of Meidensha’s directors is determined based on external objective
compensation market data, economic conditions, industry trends, and Meidensha’s businesscircumstances, etc. The content of the officers’ compensation system is determined by theinternal officers’ compensation regulations having received consultation and confirmation by
the aforementioned Nomination and Compensation Committee, giving consideration to thislevel.
ii Composition of Compensation(a) Directors (excluding Audit & Supervisory Committee members and outside directors)
Compensation of directors (excluding Audit & Supervisory Committee members and outside
directors) is based on annual salary system with performance-linked compensation, andcomprises basic compensation and incentive compensation according to each role. Of thesetypes of compensation, incentive compensation comprises compensation that is linked tobusiness performance as a short-term incentive and stock compensation as a medium to longterm incentive.

Target Proportion of Each Type of Compensation ((if 100% of targets were achieved))(b) Directors and Outside Directors Who Are Audit & Supervisory Committee Members
Directors and outside directors who are Audit & Supervisory Committee members only receive
basic compensation on annual salary system basis.

114

Meiden Group Sustainability

iii Incentive Compensation System
Performance-linked compensation, which is a short-term incentive, varies from 0 to 140
depending on the degree of achievement of targets, with perfect achievement of targets
counting as 100. We use operating income, which is also used for our financial targets in theMedium-term Management Plan, as a performance evaluation indicator, and give consideration
to revisions according to operating conditions and changes to the roles of each officer, etc.

Calculation Formula
Stock compensation, which is a medium to long-term incentive, grants shares to the Officers’
Shareholders Association for the purpose of further promoting sharing of profit and loss withshareholders.
iv Compensation Determination Procedures
The Nomination and Compensation Committee confirms and considers the content of thecompensation system and the amount of compensation from an objective perspective prior todetermination by the Board of Directors.

FY2020 Results
Classification

Total Amount Total Amount of Each Type ofof
Compensation, etc.
Compensation,(millions of yen)
etc.
Incentive(millions of Basiccompensationcompensation
yen)
310
223
87

Directors(excluding Audit& Supervisory
Committee
members andOutsideDirectors)
Outside16
directors(excluding Audit& Supervisory
Committee
members)
Directors who 40
are Audit andNumber ofPeople

7

16

-

2

40

-

2

115

Meiden Group Sustainability

Supervisory
Committee
members(excluding
OutsideDirectors)
Outside18
18
3
directors who
are Audit &Supervisory
Committee
members
Auditors
10102(excluding
outside auditors)
Outside auditors 3
3
2
Total
397
310
87
18
1. The amount paid to directors includes performance-linked compensation for fiscal 2020.
2. The total of the above people who receive compensation is an aggregate number. Threeauditors (of whom two were outside auditors) retired at the end of their terms, thereafter
assuming roles as directors who are Audit & Supervisory Committee members, so the actual
number of people who received compensation was 15.

Dialogues with Shareholders and Investors
Basic Approach and IR System

When any shareholders wish to have a dialogue with the Company that will contribute tomedium to long-term improvement of the Company’s corporate value, it is Meidensha’s policythat the Company’s management conducts the dialogue to the extent possible.
A system is in place where a Director is placed in charge of IR matters and an IR-specialist
department conducts activities to enhance constructive dialogue with shareholders, including
institutional investors and strengthens external communication. These activities are regularly
reported to and discussed by the Board of Directors.

Results Briefings

We hold results briefings twice a year in May and October. In fiscal 2020, we distributed a videoof the President’s results briefing to analysts and institutional investors on the day of thepresentation and conducted teleconferences for question-and-answer sessions the next day,instead of holding in-person briefings, in order to prevent the spread of Novel Coronavirus
disease (COVID-19).
116

Meiden Group Sustainability

IR Briefing for Overseas Investors

As there was no fiscal 2020 international road show due to the pandemic, we actively
contacted major international investors and conducted individual interviews by telephone.
Meidensha commenced its first foreign securities company coverage amid increased attention
from overseas investors.

Individual Business Briefings (Small Meetings)

Since fiscal 2018, we have held small meetings once a year. We set a different business theme
each year, and create an opportunity to better understand the Company’s business byconducting briefings and Q&A by responsible officers.
At the small meeting held in December 2020, we conducted a briefing by a general officer of
the T&D business (Director and Senior Managing Executive Officer Nobuaki Tamaki) with thetheme of “business strategy for vacuum products and expansion into North America.” Themeeting was attended by 10 analysts.

Main IR Activities in Fiscal 2020
Individual Sessions
NumberDomestic Investors
124
Overseas Investors
32
Total
159
The materials for the results briefings are available for viewing. Please visit “Fact Sheet for
Account Settlement Briefing Session” under “Investors” on the Corporate website.
Fact Sheet for Account Settlement Briefing Session

Opinions of Analysts and Institutional Investors

We publish a quarterly IR report, which includes the opinions and requests given at results
briefings and individual interviews, and this is reported to executive officers and directors. The
main opinions provided by analysts and institutional investors in fiscal 2020 are as follows.
Management that is more aware of capital efficiency
Management and disclosure of each business group’s management targets
A stance for enhancing shareholder returns
A business area for future investment
Measures for improved profitability of overseas businesses and a timeline for achievement
A timeline and sense of scale of business benefits from carbon neutrality
Active information disclosure relating to ESG management
Policies relating to cross-shareholdings and antitakeover measures
117

Meiden Group Sustainability

Going forward, we will ensure even fuller disclosure of information through results briefings,
individual IR, conferences, the website, and this report, etc., and continue to engage in dialog
with shareholders and investors.

Board of Directors & Executive Officers as of July, 2021
Directors

Yuji Hamasaki

Director and Chairman
Nomination & Compensation Committee Member
Reason for Selection and Expected Role

Yuji Hamasaki has served as director and Chairman overseeing all aspects of
the Group’s management since 2018. He has worked to enhance thesupervisory function of the Board of Directors as director and Chairman, andhas promoted the transition to a system design for a company with an Audit &Supervisory Committee, as well as separation of supervisory and executivefunctions.
He has been selected as he is expected to further enhance the corporate
governance of the entire Meiden Group by leveraging the aforementioned
experience and achievements, steering the direction of the Meiden Group’s
management, and further revitalizing discussions of the Board of Directors.
Career Summary

June 2004 – Executive officer of Sumitomo Electric Industries, Ltd.
June 2005 – Managing executive officer of Sumitomo Electric Industries, Ltd.
June 2006 – Managing director of Sumitomo Electric Industries, Ltd.
April 2010 – Senior managing executive officer of Meidensha
June 2010 – Director of Meidensha
April 2011 – Executive vice president of Meidensha
June 2013 – President of Meidensha
June 2018 to present – Chairman of Meidensha

Takeshi Miida
118

Meiden Group Sustainability

Representative Director and President
Nomination & Compensation Committee Member
Reason for Selection and Expected Role

Since 2018, Takeshi Miida has worked hard as representative director andPresident. He has been involved in all aspects of management of the Meiden
Group as well as drafting and implementing the previous medium-term
management plan.
He has been selected as he is expected to leverage the aforementioned
experience and results, promote Medium-term Management Plan 2024, andenhance the oversight function of the Board of Directors through his
involvement in management as an overseer of Medium-term Management Plan
2024.
Career Summary

April 1978 – Joined Meidensha
April 2008 – Executive officer in charge of the Corporate Policy PlanningGroup and the Corporate Policy Planning Division
April 2011 – Managing executive officer in charge of the Corporate Policy
Planning Group and head of the Corporate Policy Planning Division
June 2012 – Director
April 2015 – Executive vice president
June 2018 to present – President

Shosuke Mori

Representative Director and Executive Vice President
Reason for Selection and Expected Role

Shosuke Mori worked hard to conduct strategic enhancement of the social
infrastructure systems business and the maintenance and servicing businessunder the previous medium-term management plan. This fiscal year, he is
responsible for the Public, Industrial & Commercial Sector Business Group andthe Field Service Engineering Business Group, and he will deepen thestrategies of each group. He has been selected as he is expected to leverage
the aforementioned experience and results which will help us to further
promote Medium-term Management Plan 2024 and enhance the oversightfunction of the Board of Directors through his involvement in management.
Career Summary

April 2011 – Executive officer in charge of the 1st Headquarters Sales Divisionof Sumitomo Mitsui Banking Corporation
April 2013 – Executive officer in charge of the General International Division of
Sumitomo Mitsui Banking Corporation
119

Meiden Group Sustainability

April 2014 – Managing executive officer in charge of the General International
Division of Sumitomo Mitsui Banking Corporation
April 2015 – Managing executive officer in charge of the Asia Pacific Divisionof Sumitomo Mitsui Banking Corporation
April 2017 – Senior managing executive officer, second in command of theInternational Division of Sumitomo Mitsui Banking Corporation
April 2018– Senior managing executive officer in charge of the Corporate
Advisory Division of Sumitomo Mitsui Banking Corporation
April 2019 – Executive officer and vice president of Meidensha
June 2019 to present – Executive vice president of Meidensha
April 2021 to present – In charge of the Public, Industrial & Commercial Sector
Business Group and the Field Service Engineering Business Group

Norio Takekawa

Director and Senior Managing Executive Officer
Reason for Selection and Expected Role

Norio Takekawa worked hard to improve the production and quality control
system under the previous medium-term management plan. This fiscal year, hewill be responsible for a project to comprehensively enhance the production
system of all Group companies.
He has been selected as he is expected to leverage the aforementioned
experience and results which will help us to further promote Medium-termManagement Plan 2024 and enhance the oversight function of the Board of
Directors through his involvement in management.
Career Summary

April 1981 – Joined Meidensha
April 2015 – Executive officer in charge of the Plant Construction &Engineering Business Group
April 2017 – Managing executive officer in charge of the Production
Engineering and Management Group
April 2018 – Senior managing executive officer in charge of the Production
Engineering and Management Group
June 2018 to present – Director
April 2020 to present – Senior managing executive officer in charge of the
Plant Construction & Engineering Business Group
April 2021 to present – Senior managing executive officer

120

Meiden Group Sustainability

Nobuaki Tamaki

Director and Senior Managing Executive Officer
Reason for Selection and Expected Role

Nobuaki Tamaki worked hard to expand the scale of overseas businesses
under the previous medium-term management plan. This fiscal year, he will be
responsible for a project to enhance the Power Infrastructures Business Groupand innovation.
We request his selection as he is expected to leverage the aforementioned
experience and results which will help us to further promote Medium-termManagement Plan 2024 and enhance the oversight function of the Board of
Directors through his involvement in management.
Career Summary

April 1982 – Joined Meidensha
April 2015 – Head of the T&D Business Unit
April 2016 – Executive officer in charge of the T&D Business Unit
April 2017 – Managing executive officer in charge of the T&D Business Unit
April 2018 – Senior managing executive officer in charge of the T&D Business
Unit
June 2018 to present – Director
April 2020 to present – Senior managing executive officer in charge of theOverseas Business Strategic Management Group
April 2021 to present – Senior managing executive officer in charge of thePower Infrastructures Business Group and the Overseas Business Strategic
Management Group

Masayuki Iwao

Director and Senior Managing Executive Officer
Reason for Selection and Expected Role

Masayuki Iwao is originally from the Accounting and Finance Business Unit,
and he has worked hard to enhance the internal control and risk management
systems under the previous medium-term management plan. This fiscal year,
he will be responsible for all corporate governance, and a project to reformprofessional development and work-styles under Medium-term Management
121

Meiden Group Sustainability

Plan 2024.
He has been selected as he is expected to leverage the aforementioned
experience and results which will help us to further promote Medium-termManagement Plan 2024 and enhance the oversight function of the Board of
Directors through his involvement in management.
Career Summary

April 1985 – Joined Meidensha
April 2015 – Executive officer in charge of the Financing Division
April 2016 – Executive officer in charge of the Accounting and Financing
Group
April 2018 – Managing executive officer
April 2020 to present – Managing executive officer in charge of the Group for
Promotion of Internal Control
April 2021 to present – Senior managing executive officer in charge of theGroup for Promotion of Internal Control and the HR and General Affairs Group
June 2021 to present - Director

Tatsuki Mochizuki

Director and Senior Managing Executive Officer
Reason for Selection and Expected Role

Tatsuki Mochizuki has extensive experience in domestic and overseas sales. He
was responsible for the social infrastructure and maintenance and servicing
businesses, and he has worked hard to enhance overseas businesses under
the previous medium-term management plan. This fiscal year, he will oversee all
sales operations and is responsible for the Mobility and Electrical Components
Business Group.
He has been selected as he is expected to leverage the aforementioned
experience and results which will help us to further promote Medium-termManagement Plan 2024 and enhance the oversight function of the Board of
Directors through his involvement in management.
Career Summary

April 1985 – Joined Meidensha
April 2013 – Head of the Kyushu Branch
October 2015 – Head of the Chubu Branch
April 2016 – Executive officer in charge of the Chubu Branch Office
April 2018 – Managing executive officer in charge of the Public, Industrial &Commercial Sector Business Unit
April 2021 to present – Senior managing executive officer in charge of the
122

Meiden Group Sustainability

Mobility and Electrical Components Business Group
June 2021 to present - Director

Hiroyuki Takenaka

Nomination & Compensation Committee Member
Reason for Selection and Expected Role

Hiroyuki Takenaka uses his extensive management experience spanning many
years and broad knowledge to tirelessly work to improve the Meiden Group’s
corporate governance. At present, he is serving as chair of the voluntary
Nomination and Compensation Committee and contributing to improved
transparency of management.
He has been selected as he is expected to fill roles such as providing
instruction and advice to further enhance the supervisory function of theBoard of Directors and ensure appropriate risk-taking, by continuing to reflect
the aforementioned experience and knowledge at meetings of Meidensha’s
Board of Directors.
Career Summary

June 2001 – Director of Sumitomo Electric Industries, Ltd.
June 2003 – Executive officer of Sumitomo Electric Industries, Ltd.
June 2004 – Managing director of Sumitomo Electric Industries, Ltd.
June 2007 – Senior managing director in charge of the Electrical Cable,
Materials, and Energy Business Headquarters and the Production Technology
Headquarters of Sumitomo Electric Industries, Ltd.
June 2008 – Senior managing director in charge of the electrical cable,materials, and energy business headquarters oof Sumitomo Electric Industries,
Ltd.
May 2010 – Senior managing director of Sumitomo Electric Industries, Ltd.
June 2010 – Executive vice president of Sumitomo Electric Industries, Ltd.
June 2013 to present – Director of Meidensha

Junji Yasui

Outside Director

Reason for Selection and Expected Role
123

Meiden Group Sustainability

Junji Yasui uses his extensive management experience spanning many years
and broad knowledge to tirelessly work to improve the Meiden Group’s
corporate governance. At present, he is serving as a member of the voluntary
Nomination and Compensation Committee and contributing to improved
transparency of management.
We request his selection as he is expected to fill roles such as providing
instruction and advice to further enhance the supervisory function of theBoard of Directors and ensure appropriate risk-taking, by continuing to reflect
the aforementioned experience and knowledge at meetings of Meidensha’s
Board of Directors.
Career Summary

April 2004 – Executive officer in charge of the Third Solutions and Sales
Business Headquarters of NEC Corporation
April 2005 – Executive officer in charge of the Fourth Solutions Business
Headquarters of NEC Corporation
April 2008 – Executive vice president of NEC Corporation
June 2008 – Director and executive vice president of NEC Corporation
April 2010 – Director and managing executive vice president of NEC
Corporation
July 2011 – Director, managing executive vice president, and chief supply chain
officer of NEC Corporation
April 2012 – Representative director, senior executive vice president, and chief
supply chain officer of NEC Corporation
April 2016 – Representative director and senior executive vice president of
NEC Corporation
June 2016 to present – Director of Meidensha

Tadayoshi Machimura

Director and Audit & Supervisory Committee Member(Full-time Audit & Supervisory Committee Member)
Reason for Selection and Expected Role

Until March 2019, Tadayoshi Machimura served as a representative director of
Meidensha. Until March 2020, he was involved with management as thepresident of Meiden O&M, which is the core of the Group’s maintenance andservicing business, and he has extensive experience and achievements.
He has been selected as he is expected to further enhance audit andsupervisory functions by reflecting his perspective on management of theentire Meiden Group, including affiliates, in Meidensha’s audits and meetings ofthe Board of Directors based on the aforementioned experience andachievements.
124

Meiden Group Sustainability

Career Summary

April 1977 – Joined Meidensha
April 2012 – Executive officer and supervisor of electric power conversion
products of Meidensha
April 2014 – Managing executive officer, supervisor of electric power
conversion products, and supervisor of power generation products of
Meidensha
April 2015 – Senior managing executive officer of Meidensha
June 2015 – Director of Meidensha
April 2018 – Executive vice president of Meidensha
April 2019 – President of Meiden O&M Corporation
April 2020 – Adviser at Meidensha
June 2020 to present – Director (Audit & Supervisory Committee Member) at
Meidensha

Michihiko Kato

Director and Audit & Supervisory Committee Member(Full-time Audit & Supervisory Committee Member)
Reason for Selection and Expected Role

Michihiko Kato mainly has sales experience in the social infrastructurebusiness. He has worked hard to enhance sales capabilities in his roleoverseeing all sales under the previous medium-term management plan. He not
only has sales experience; he also has supervision experience in theConstruction Business Unit. He possesses extensive experience andknowledge.
We request his selection as he is expected to further enhance audit andsupervisory functions by showcasing the aforementioned extensive experiencein Meidensha’s audits and at meetings of the Board of Directors.
Career Summary

April 1982 – Joined Meidensha
April 2014 – Executive officer in charge of the Water and Environment Division
and Sales Division
April 2016 – Managing executive officer in charge of the Water andEnvironment Division
April 2017 – Managing executive officer
April 2020 – Managing executive officer in charge of the Sales Planning and
Coordination Group
April 2021 – Senior trustee
June 2021 to present – Director (Audit & Supervisory Committee member)
125

Meiden Group Sustainability

Yoshiaki Shin

Director and Audit & Supervisory Committee Member(Outside Director) Nomination and Compensation Committee Member
Reason for Selection and Expected Role

Yoshiaki Shin has extensive management experience and high-level knowledge
spanning many years, and has experience as an auditor of Meidensha. He has
been selected as he is expected to further enhance audit and supervisory
functions by reflecting the aforementioned experience and knowledge in
Meidensha’s audits and meetings of the Board of Directors.
Career Summary

April 2008 – Director and chair of Mitsui Sumitomo Insurance Group Holdings,
Incorporated
April 2010 – Director of Mitsui Sumitomo Insurance Co., Ltd.
April 2010 – Consultant at MS & AD Insurance Group Holdings, Inc.
April 2011 – Standing consultant at Mitsui Sumitomo Insurance Co., Ltd.
June 2012 – Outside auditor of Meidensha
June 2012 – Director of DSB Co., Ltd.
April 2014 to present – Senior advisor to Mitsui Sumitomo Insurance Co., Ltd.
June 2020 to present – Director (Audit & Supervisory Committee Member) of
Meidensha

Mitsuru Nawata

Director and Audit & Supervisory Committee Member(Outside Director)
Reason for Selection and Expected Role

Mitsuru Nawata has extensive management experience and high-levelknowledge spanning many years, and has experience as an auditor of
Meidensha. He has been selected as he is expected to further enhance audit
and supervisory functions by reflecting the aforementioned experience andknowledge in Meidensha’s audits and meetings of the Board of Directors.
Career Summary

126

Meiden Group Sustainability

June 2007 – Managing executive officer of The Sumitomo Trust and Banking
Co., Ltd. (currently Sumitomo Mitsui Trust Bank, Limited)
May 2008 - Managing executive officer in charge of the credit division of The
Sumitomo Trust and Banking Co., Ltd.
January 2009 - Managing executive officer in charge of the first credit divisionof The Sumitomo Trust and Banking Co., Ltd.
May 2009 – Managing executive officer of The Sumitomo Trust and Banking
Co., Ltd.
June 2010 – Director and chair of Life Housing Loan Co., Ltd.
June 2010 – Director and chair of First Credit Corporation
October 2010 – President of Sumishin Real Estate Loan & Finance, Limited(currently Sumitomo Mitsui Trust Loan & Finance Co., Ltd.)
April 2015 – Director and chair of Sumitomo Mitsui Trust Loan & Finance Co.,Ltd.
April 2016 – Standing auditor of Sumitomo Mitsui Trust Panasonic Finance Co.,Ltd.
June 2016 – Outside auditor of Meidensha
June 2020 to present – Director (Audit & Supervisory Committee Member) of
Meidensha

Keiko Hayashi

Director and Audit & Supervisory Committee Member(Outside Director)
Reason for Selection and Expected Role

Keiko Hayashi has a high-level of expertise and extensive experience as anaccountant spanning many years. She has gained wide-ranging views andknowledge through organizational diversity promotion initiatives. She has been
selected as she is expected to further enhance audit and supervisory functions
by reflecting the aforementioned expertise, experience, views, and knowledge
in Meidensha’s audits and meetings of the Board of Directors.
Career Summary

April 1986 – Joined the Tokyo Regional Taxation Bureau
October 1990 – Joined Tohmatsu & Co. (currently Deloitte Touche Tohmatsu
LLC)
March 1994 – Registered as a certified public accountant
July 2006 – Partner of Tohmatsu Audit Corporation (currently Deloitte Touche
Tohmatsu LLC)
July 2013 – Director of The Japanese Institute of Certified Public Accountants
October 2013 - Deloitte Tohmatsu Group diversity promotion officer
July 2016 to present – Managing director of The Japanese Institute of127

Meiden Group Sustainability

Certified Public Accountants
November 2018 – Representative director of Tohmatsu Challenged Co., Ltd.
January 2019 to present – Member of Acquisition, Technology and Logistics
Agency Defense Procurement Council
June 2019 - Deloitte Tohmatsu Group D & I committee advisor
August 2019 – Chair of The Japanese Institute of Certified Public Accountants
Audit Practice and Review Committee
October 2019 to present – Chair of The Japanese Institute of Certified Public
Accountants Audit and Discipline Investigation Committee
June 2020 – Outside director of Lifenet Insurance Company
June 2020 to present – Director (Audit & Supervisory Committee Member) of
Meidensha
July 2020 to present – Principal of Keiko Hayashi Accounting OfficeFebruary 2021 to present – Outside auditor of Nippon Filcon Co., Ltd.
March 2021 to present – Supervising officer of Nippon Building Fund Inc.
June 2021 to present – Outside director (Audit & Supervisory Committee
member) of Lifenet Insurance Company
Managing Kuniake Yasukawa
Executive Masahiko Suzuki
Officers Akio Inoue
Hiroshi Toke
Satoshi Momenya
Hideki Miyazawa
Akio Ikemori
Executive Noritaka Matsushita
Officers Hisahiro Murashima
Norio Mizutani
Takeo Suzuki
Katsunori Suzuki
Munekazu Shiratori
Kuniteru Yamaoka
Katsuyuki Watanabe
Seiji Kato
Kazuhiro Yamada
Nobuya Ono
Hiroshi Takahata
Katsumi Shimamura
Takehisa Koganezawa

128

Meiden Group Sustainability

Home Sustainability

Corporate Governance Risk Management

Corporate GovernanceRisk Management
PolicyBasic ApproachWith regard to business activities in the near future, we must precisely understand various
business risks that may manifest in the future and ensure that we provide for them in order toguide our business strategy to success and increase corporate value in unstable global
circumstances with increasing complexity and lack of clarity. With this awareness, we consider
that it is necessary for each business unit of the Meiden Group to increase its sensitivity when
considering business risks, establish its own PDCA risk management systems, and establish asystem to understand and control major business risks throughout the entire Group, while
enhancing risk management during times of normal operation through the establishment of a
specialized risk management department. Furthermore, we aim to create a system that is
capable of responding to constant change and all risks by creating a risk management system
for all companies that incorporates Business Continuity Management (BCM) in order to
respond to risks to the business continuity of the entire Group.

Risk Management Structure
Operation of the Risk management Committee

The Meiden Group deems risks to be “uncertain future events that could impede theachievement of plans,” and defines management as “devising and implementing response
measures,” so risk management is defined as systematic management of risks. In fiscal 2018,
we introduced control self-assessment (CSA) to identify, evaluate, and control risks relating tobusiness strategy and management of business units, including factories and subsidiaries. In
addition to this CSA by business units, in fiscal 2020, we established the Enterprise Risk
Management Division of the Group for Promotion of Internal Control and the Risk Management
Committee in order to identify, evaluate, and appropriately control major business risks facing
the Group as a whole. Going forward, we will continue to promote the establishment of a risk
management structure, and work to foster even greater awareness of risk in employees, inorder to completely achieve our business plan by precisely understanding and controlling a
range of business risks.

129

Meiden Group Sustainability

Risk Management Structure

Operation of the Risk management Committee

Risk management through CSA of business units is conducted with the support of the Groupfor Promotion of Internal Control and the staff business unit. The Internal Auditing Division
conducts risk evaluation and control verification through CSA for each business unit at thetime of business audits, and reports the results to the Executive Officers' Meeting, the Board of
Directors, and prominent managers from time to time. The Enterprise Risk Management
Division gathers CSA risk information from each business unit, collects a range of risk
information in conjunction with the Headquarters staff business units and the various
committees, and identifies key business risks to be dealt with by the entire Meiden Group. The
Risk Management Committee is chaired by the head of the Group for Promotion of Internal
Control. Key members of the Headquarters staff business units scrutinize the Meiden Group’s
major business risks that have been identified by the Enterprise Risk Management Division anddebate response policies each half.
Managers further debate business risks debated by the Risk Management Committee at the
Executive Officers' Meeting and the Board of Directors, stipulate key business risks facing the
Meiden Group, and determine response policies.

The Meiden Group’s Risk Management Structure

Major Risks from Business Activities

The Meiden Group stipulates major business risks to the entire Meiden Group through regular
discussion among managers according to systems such as those listed above. Major businessrisks are as follows.
(1) Business Management Risks
Risks relating to compliance
Risks relating to HR
130

Meiden Group Sustainability

Risks relating to quality of products and services
Risks relating to information security
Risks relating to occupational accidents and incidents
Risks relating to overseas business management
Risks relating to procurement of materials
Risks relating to environmental management
Risks relating to fluctuations in value of assets held
(2) Risks from Change in External Environment
Occurrence of natural disasters
Global financial trends
Change of legal or regulatory trends
Rapid technological innovation
Interest rate fluctuations(3) Other Risks
Novel Coronavirus disease (COVID-19)
Major lawsuits, etc.
Initiatives

Risk Management Relating to Business Activities
Preliminary Risk Assessment

Preliminary risk assessment was initiated in October 2012 for the proposing business unit andthe reviewing business unit to scrutinize information necessary to make management decisions
relating to projects that may seriously negative impact the Group and provide it to managers.
More than 100 projects have been reviewed to date. Projects subject to review are generallyclassified as large scale EPCs, M&A, partnerships, joint developments, new businesses, or othermatters that require a resolution by the Executive Officers' Meeting according to regulations. In
preliminary risk assessment, we encourage proposers to:(1) Identify and assess the high risk factors of EPC project such as risk of construction
works and project profit and take necessary measures to the project.
(2) Identify and assess contract risk such as commercial and technical conditions regard totenders, partnerships etc., and enhance risk management to the relatives.
(3) Analyze risk from multiple perspectives by third party experts and take measures toreduce risk.
As mentioned above, in the preliminary risk assessment, we evaluate not only financial risks, but
project risks, operation risks, etc. At present, preliminary risk assessment is operated by the131

Meiden Group Sustainability

Corporate Policy Planning Group and the Group for Promotion of Internal Control, and their
responsible executives decide whether or not to conduct preliminary review. Depending on thecontent, the Legal Affairs Division, the Overseas Business Strategic Management Group, and
the Accounting and Financing Group participate in the assessment.
Policies, Plans, and Targets

Business Continuity Plan (BCP)
Basic BCP Policy

The Meiden Group Basic BCP Policy stipulates the Meiden Group’s basic policy on business
continuity, business continuity targets, and response in the event of a disaster, etc., and isapplied at each business unit and subsidiary.
[Basic Business Continuity Policy](1) In the event of a disaster, it is our utmost priority to ensure the safety of all employees,
their family members, and customers.
(2) We contribute to swift reconstruction and recovery from disasters, considering ourcorporate social responsibility as a company that supports social infrastructure.
(3) Limit i mpact on customers and Meidensha’s businesses as much as possible.

Medium-term Management Plan (FY2021 to FY2024)

We will promote the Medium-term Management Plan, paying particular attention to thefollowing items relating to disaster-prevention and BCP.
●Ongoing BCP initiatives
Moving from an earthquake-based BCP to an “all-hazard” BCP that applies to a range of risks
Establishing a BCP and creating systems to maintain, evaluate, and confirm its effectivenessContinuing education and training, and ensuring that each employee is involved with BCP
initiatives
Extending the BCP to overseas subsidiaries, and creating a BCP with a global perspective●Improving corporate and organizational resilience
Encouraging independent promotion of BCPs by business units, and work to improve
Disaster responsiveness by company organization
Considering alternative production sites for important operations●Contributing to society and communities
Contributing to disaster-resilient community development by supplying Meidensha’s BCP
products and corporate BCP initiatives to communities and society
132

Meiden Group Sustainability

System

BCM Promotion System

Under the BCM Committee, which determines the Meiden Group’s BCP policy and measures,the Meiden Group established the Corporate BCP Promotion Committee, BCP promotion
committees for each business, Domestic Subsidiary BCP Subcommittee, the Working Group toConsider Priority Businesses, and the Working Group to Handle and Protect Employees, andpromotes BCP throughout the Group.
Initiatives

BCAO Awards 2019: Superior Practice Award

Meidensha received the Superior Practice Award in the Business Continuity Division and waspraised for its business continuity planning (BCP) for all business units in 2018, as well as its
system of business continuity management (BCM).
The BCAO Awards are administered by the Business Continuity Advancement Organization(BCAO) to recognize individuals or groups that have contributed to the spread andimplementation of business continuity, in order to promote the proliferation of business
continuity in Japan.

133

Meiden Group Sustainability

September 29, 2020: Online award
ceremony

Promotion of creating Business Continuity Plans (BCP)

We hold workshops regularly at each business unit for business managers and BCP promotion
managers to understand and formulate effective BCPs.
In fiscal 2020, we held workshops in dispersed locations as well as hybrid workshops that takeplace both online and in person, in order to ensure the effectiveness of workshops and avoid
the three Cs (Closed spaces, Crowded places and Close-contact settings) that contribute to
COVID-19 transmission.

Workshops

Employee Education on Disaster Prevention and BCP

We conduct ongoing employee education in disaster prevention and BCP for each level of
employment. In fiscal 2020, we educated for new employees and new managers.

New employee training

New manager training

Creation of Tools for Disaster Prevention Education

Building on the disaster response card created the year before last, in fiscal 2020, we createdthe Meiden Group Hazard Maps, and we distributed it to Group employees in order to lead tomeasures in a normal operation and appropriate actions in times of emergency byunderstanding and Improving awareness of disaster risks on a regular basis.
Through this measure and the disaster response card, we hope to prevent and prepare for134

Meiden Group Sustainability

disasters, and plan to make use of opportunities to discuss preparation for disasters withpeople at work customers, and trading partners.

Disaster response card carried by all
employees

Hazard Maps

External Communication of Information

We widely disseminated information about Meidensha’s disaster-prevention and BCP initiatives
through online seminars and presentations, etc.
At presentations, we mainly introduce examples of our actual initiatives, and try to makepresentations useful for participating companies to their implement activities.

Presentation in Numazu

ISM Japan Annual Conference

Developing BCP Total Service Business

Utilizing internal systems to seek and develop new business ideas from the bottom up, we areconducting development aimed at commercialization through the research of the market needs
and interviews with interested parties with the new business theme of “providing a business
continuity planning (BCP) total service.”

135

Meiden Group Sustainability

Response to the Novel Coronavirus Disease (COVID-19)

The global spread of the novel coronavirus disease (COVID-19) impacted the Meiden Group in
ways such as suspension of production at overseas sites such as China, delay of partsprocurement, and postponement of sales. The Meiden Group established the Company-Wide
Response Headquarters, created the Novel Coronavirus (COVID-19) Response Action
Guidelines and the Novel Coronavirus (COVID-19) Response Manual, and is continuing to act
with awareness of preventing infection after the state of emergency has been lifted (avoiding
the three Cs and reducing commuting outside of the region of factories by 70%, etc.) with thehealth and safety of employees as our utmost priority, and reducing the impact on businessactivities such as by continuing operation of all factories in Japan in accordance with theguidelines.
Furthermore, we have ensured both the health and safety of employees and business
continuity at overseas sites, by creating behavior standards to prevent infections, introducing
working from home and rotation shifts, and accelerating the introduction of Internet
communication tools, in accordance with relevant national government policies. We expect
global restrictions on the movement of people to extend into the long term, so we will promote
new work styles through greater use of Internet communication tools.
Corresponding to COVID-19 infection
Policy and Organization

Strengthening Information Security Management

The Meiden Group understands that ensuring the security of the information we handle is amost critical issue. We therefore protect information assets from disasters, accidents, criminal
acts, errors, and other threats. We also maintain and enhance information management toprevent leaks, tampering, or theft.

136

Meiden Group Sustainability

Meidensha Basic Information Security Policy

1. Purpose and Scope of Information Security
Meidensha (hereinafter the “Company”) is aware that ensuring security of information assets
handled by the Company is a major management issue for the Company, and protects
information assets from threats such as disasters, accidents, crime, negligence, and cyberrisks.
By establishing and maintaining information security management, we aim to prevent
information security incidents such as leakage, falsification, or theft of information, build
relationships of trust with a range of interested parties, including shareholders and customers,
and improve corporate value of the Company.
This basic policy applies to all personnel who handle information assets managed by theCompany.
2. Legal Compliance, etc.
The Company complies with obligations imposed by laws and agreements that relate tobusiness activities.
Everyone involved with business activities ensures thorough compliance with matters requiredby laws and regulations, obligations imposed by agreements, this policy, and internalmanagement regulations relating to information security.
3. Establishment and Maintenance of Information Security
The Company provides for information security management such as by nominating an
Information Security Manager and an Information Security Business Unit Managers, andestablishing an office, has established regulations and procedures, etc., based on the Basic
Information Security Policy, and continuously maintains and improves information security.
SystemInformation Security Control System

137

Meiden Group Sustainability

Information Security Management

The Meiden Group conducts information security audits of Meidensha and subsidiaries, mainly
through the Information Security Committee, and verifies and evaluates whether security
measures are actually being implemented and function.
At present, some of Meidensha and its domestic subsidiaries have received Information
Security Management System (ISMS) certification.

Initiatives

In fiscal 2020, we are continuing to implement initiatives to reinforce information security forthe entire Meiden Group.

Analysis of Incidents and Countermeasures for Each Cause

The Meiden Group is working to implement sustainable security measures in the areas of“prediction,” “defense,” “detection,” and “response.”
We analyze and implement both hardware and software measures to protect data fromunauthorized logins, etc., and virus infections from suspicious emails, such as targeted email
attacks, as well as measures mainly aim at combatting human factors such as theft, loss, ormishandling of information devices. We introduced the Security Operation Center (SOC) infiscal 2017, established a detection system that operates 24 hours per day, 365 days per year,
and in fiscal 2019, we installed next-generation antivirus software on all computers, in order toenhance detection.
We established the Meiden Computer Security Incident Response Team (CSIRT) and joined the
Nippon CSIRT Association in order to enhance response. We also conduct incident response
training and promote the establishment of internal systems to speed up response to incidents.

Information Security Education and Training

All of the Meiden Group’s officers, employees, dispatch workers, and contract workers, etc.,
engage in information security education. In fiscal 2020, we conducted e-learning with the138

Meiden Group Sustainability

theme of “the danger of suspicious emails.” The e-learning was attended by 90% of employeeswith materials sent to those who were unable to attend online.
Since fiscal 2015, we have continuously conducted suspicious email drills as education aboutcyber attacks such as targeted attack emails.
Going forward, we will continue to strengthen hardware and software measures and continue to
conduct personnel measures, such as information security education and suspicious email
drills. We are continuously rolling out measures for information security on a group-wide basis.

Enhancement of Supply Chain Information Security

Since fiscal 2017, we have continuously conducted activities to enhance information security
together with our suppliers. We ensure that suppliers are aware of information security
measures as management issues, and we hold training and information sessions as required.
In fiscal 2019, we began conducting site visits for some suppliers and activities to confirm thestatus of measures. In this way, we are continuing to conduct activities to enhance information
security throughout the entire supply chain.

139

Meiden Group Sustainability

Home Sustainability

Corporate Governance ComplianceCorporate GovernanceCompliance
PolicyCompliance Policy

The Meiden Group fully understands domestic and overseas laws, including those relating tocorporate activities, customs, and all other social norms and spirit. The Meiden Group complies
with and respects these, and has developed the Meiden Group Code of Conduct to constantly
maintain a high standard of corporate ethics and social decency.
In accordance with this code of conduct, the Meiden Group aims to sincerely engage inactivities to live up to the trust of customers and society. Directors, executive officers, andgeneral managers of Meidensha and each Group company play a central role in promoting
compliance in each of their workplaces, in accordance with the Meiden Group Compliance
Promotion Rules.
SystemCompliance System

We have established the Compliance Committee, which operates separately from the workplacestructure. The Committee handles matters relating to determination of policies concerningcompliance activities, compliance education, and compliance reporting and works to express
opinions and solve problems relating to a range of situations that may arise. The Compliance
Committee is chaired by an officer responsible for compliance (the Chairman for fiscal 2020
was a director and senior managing executive officer), and comprises heads of staff business
units such as the Legal Affairs Division and the Internal Auditing Division. It holds regularmeetings twice each year. The content of Compliance Committee discussions is reported to
management.
We have placed a compliance manager in each workplace in order to connect the Compliance
Committee with workplaces. These compliance managers report matters being discussed at theworkplace and issues they discover to the Compliance Committee. The compliance committee
shares information with compliance managers through compliance training. This strengthens
communication and reporting systems.
In fiscal 2020, the Compliance Committee reflected on existing systems and activities.
Committee members expressed many opinions, and the committee confirmed the course of
future systems and activities. Also, in order to enhance overseas compliance, we are continuing
to promote the implementation of internal control systems at overseas group companies.

140

Meiden Group Sustainability

Compliance System

Whistleblower System on Compliance

Meidensha has a whistleblower system for compliance. This is to prevent illegal actions andmisconduct and to solve problems as early as possible.
This whistleblower system includes the Compliance Hotline dealing with a broad range ofcompliance issues including breaches of laws such as the Antimonopoly Act and bribery
regulations, breaches of internal or external rules, and labor problems, the Harassment
Consultation Hotline, which is specifically designed to deal with harassment, and the Public
Whistleblower Hotline for early detection and rectification of unlawful acts, etc. Furthermore,
we have also established a supplier-specific whistleblower hotline in fiscal 2018.
The Compliance Hotline System is an internal measure to receive anonymous whistleblower
reports from employees including retirees, through a dedicated phone line, letters, or email
contacts. The Public Whistleblower System handles external communications at a law firm as
well as internal communications, and may be used by employees of the Meiden Group(including retirees), temporary staff and subcontractors, and suppliers. The Compliance
Committee investigates the report that is brought to the whistleblowing contacts and, if
necessary, consults with lawyers to deal with them. We are working to increase thedependability of management of information, such as the names of whistleblowers, and thewhistleblower system as a whole, in accordance with national guidelines, to ensure thatwhistleblowers are not disadvantaged by using the system. In fiscal 2020, the Meiden Group
received 53 reports and consultations, of which we thoroughly confirmed which cases requireda response and dealt with them accordingly. The Audit Department conducts internal audits of
the operation of the system.

System to Respond to Individual Incidents

Managers who become aware of illegal or inappropriate activities are obligated to promptly
report them to their immediate superior. The system ensures that reports reach responsible
officers. Illegal or inappropriate activities that are detected internally are investigated andhandled under the direction of the head of the business unit, who serves as a member of theCompliance Committee. We work to introduce events that cause compliance problems or which
may do so through compliance training and to thus prevent their reoccurrence as appropriate.

141

Meiden Group Sustainability

Initiatives to Avoid Infringement of Human Rights
Harassment Prevention System

Harassment is one of the compliance issues regarding which consultation is most frequently
sought, so we established the Harassment Prevention Committee to create a system that is
specifically designed to handle harassment issues, and we are working to centralize handling ofconfidential information and responses as well as enhance activities to promote understanding.
When a report of harassment is made, responses are required that are considerate of personal
relationships, and particularly those of the reporter, so we created a system to avoid
infringement of human rights by establishing a hotline that is specifically designed to deal withharassment issues and creating an environment that is conducive to talking about issues. In
addition, we are conducting activities to educate employees including managers, about Anger
Management as a measure against harassment.
Initiatives

Compliance Training

The Compliance Committee conducts compliance training at ourbusiness locations throughout Japan, in order to maintain andimprove awareness of compliance and internal control systems
while collecting opinions from workplaces. At compliance training
aimed at employees, including compliance managers at eachcompany in the Meiden Group, reports are made on the status ofactivities, legal training is provided, and compliance awareness is
Compliance training
improved.
In fiscal 2020, we conducted training online in response to the
COVID-19 pandemic; however, training was conducted forlocations around Japan, and there were 1,338 participants. The
Committee made reports concerning the status of complianceactivities at the company as a whole, and it conducted education
concerning the Antimonopoly Act, the Subcontract Act,harassment, and environmental laws. We also conduct individual
presentations on compliance as part of training for each level of
new staff, leaders, and managers.

142

Meiden Group Sustainability

Policy, System, and Initiatives

Anti-corruption Measures

Meidensha stipulated “absolute prohibitions” through a resolution of the Board of Directors'
Meeting on December 26, 2012. These “absolute prohibitions” prohibit profit-sharing withnational public servants, correspondence with competitors, etc., such as bid-rigging or cartel
behavior, collection of confidential information such as target prices and job prices from
customers, etc. “Absolute prohibitions” are thoroughly enforced within the Group.
In 2016, we developed the Meiden Group Bribery Prevention Policy in order to prevent
corruption. The principles were revised in 2020 in order to make them easier to understand.
They have been disseminated throughout the Group once more in two volumes – the Meiden
Group Bribery Prevention Policy and the Guidelines for the Meiden Group Bribery Prevention
Policy.

Group Corporate Code of Conduct toward Globalization

The Meiden Group has the “Meiden Group Corporate Code of Conduct” in place and is working
to ensure compliance with laws and other social norms. In addition, we compiled the corporate
philosophy system and guidance into a booklet in three languages (Japanese, English andChinese) in preparation for globalization.
Furthermore, we have released the Meiden Group Bribery Prevention Policy and the Guidelines
for the Meiden Group Bribery Prevention Policy in three languages. These regulations andpolicies are available on the Group-common web portal.

Meiden Group Corporate Code of Conduct

Meiden Group Bribery Prevention Policy/Guidelines
Bribery Prevention Policy（PDF:440KB）

Officer Training

In fiscal 2020, we conducted training for officers relating to prevention of bribery of foreign
public servants administered by external instructors. The training was attended by thepresidents of overseas Group companies in addition to officers of Meidensha. In 2021,
providing entertainment to public servants was an issue throughout society, so in March 2021,
we, including our officers, reaffirmed our commitment to appropriate treatment of public
servants, etc.

143

Meiden Group Sustainability

Policy and Initiatives

Tax

Tax Policy

The Meiden Group is aware that ensuring transparency of tax matters and payment of tax is its
corporate social responsibility, and understands and complies with the principles of the taxation
law of each country and region in which it conducts its global business activities. We contributeto the prosperity of each country and region by paying tax appropriately according to theapplication of a preferential tax system that avoids double taxation through normal procedures
and complies with the aims of each system.
Furthermore, our policy is to refuse to engage in international tax avoidance, such as bycomplying with the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax
Administrations and refusing to use tax havens according to business circumstances.
Going forward, we will work to build friendly and healthful relationships with tax agencies
through timely and appropriate provision of information and responding sincerely in the eventof advance rulings and tax audits.
Results Data

Compliance Data

Breaches of the Law, etc., in Japan and Overseas

Incidents Relating to Laws of Japan, etc. (Entire Meiden Group)
Unit
FY2018Orders to cease and desist from Cases0
the Fair Trade Commission, etc.
Suspension of operations orCases0business due to scandals, etc.
Criminal charges for compliance- Cases
0
related incidents or accidents
Incidents Relating to Overseas Laws, etc. (Entire Meiden Group)
Unit
FY2018Discovery of price cartels
Cases
0Discovery of bribery
Cases
0
Other discovery
Cases
0
144

FY20190

FY2020
0

0

0

0

0

FY201900
0

FY20200
0
0

Meiden Group Sustainability

Consultations and Reports Through the Compliance Hotline
Number of Consultations and Reports Received Through the Compliance Hotline (Only Meidensha*)
Unit
FY2018 FY2019 FY2020
Number of consultations and
Cases
56
47
53
reports* Includes incidents at subsidiaries referred through the Meidensha Hotline.

Compliance-Related Training

Times Compliance Training Conducted and Number of Participants (Entire Meiden Group)
Unit
FY2018 FY2019 FY2020
Compliance Training
Times
30
30
11
Participants ――1,338
Education by New staff
Participants ―
―
213
level
education(compliance―
110
presentations) Leader training Participants ―New manager Participants ――90
training level 1
Training for overseas
Participants ――10management candidates(compliance presentations)* Number of Participants since fiscal 2020 is shown. was recorded from fiscal 2020.

145

Meiden Group Sustainability

Home Sustainability

SocialSustainability

Social

Product Responsibility

Supply Chain Management

Human Rights

Labor Practices

HR Development

Occupational Safety and HealthCommunity

146

Meiden Group Sustainability

Home Sustainability

Social

Product Responsibility

Social

Product Responsibility
PolicyFor customer peace of mind and satisfaction, we understand customers’ needs and concerns,
and help customers solve various issues and realize their dreams by providing high-quality
products and services. The Meiden Group strives to be trusted and depended on by customers
and society.

Quality Policy
Basic Policy
For customer peace of mind and satisfaction
We value our attitude of embracing the challenge of continuing to meet the
expectations of customers and society and our spirit of craftsmanship(Monozukuri) to
supply high-quality products and services, also we help our customers to solve issues,
focus on activities to eliminate defects, and produce results through priority measures.
We ensure that each of the Group’s employees is aware of our social responsibility
concerning the Company’s products and services and the scale of the impact that
defects have on our business to provide products and services that satisfy ourcustomers.
Plan and Targets

Under Medium-term Management Plan 2024, we will promote initiatives to improve quality with
the quantitative target of reducing the number of defects and the cost of rectifying defects byhalf in comparison with 2020 results over four years, and contribute to increased profits byincreasing customer satisfaction and reducing unnecessary costs.
Organization

Quality Assurance System

Under the direction of the President, who is our chief executive officer, and the Executive
Committee, the head of the Quality Control Management Unit (Executive Officer, Nobuya Ono)oversees quality management for the whole Meiden Group. The quality assurance (QA)
promotion system comprises the General Manager of the Quality Control Management Division,
who is responsible for promoting quality at a company-wide level, and members under the
direction of the quality assurance managers of each business unit. We conduct activities suchas sharing quality information and roll-out of policies to other business units at meetings of the147

Meiden Group Sustainability

Company-wide Quality Assurance Meeting and each business unit’s Quality Assurance Meeting,etc.
Quality Assurance System

Quality Assurance Activities and Quality Risk Management

The Meiden Group conducts initiatives in each business unit for quality assurance and quality
improvement according to the President’s Quality Management Policy. We comply with relevantlaws, we have created quality management systems based on ISO9001 not only for production
divisions, but for each business unit including sales divisions, technical divisions and for eachGroup company, with a focus on manufacturing companies, and we are implementing quality
assurance measures.
In order to maintain and improve said systems, we conduct ISO9001 internal auditor education
for all Group companies in order to improve the skills of internal auditors. Furthermore, if there
is a quality issue that is likely to have a severe effect on society, such as a blackout, a stoppageof water supply, or a recall, we handle the matter in accordance with stringent rules to ensureswift and appropriate action through reporting to management and sharing information withspecialist divisions, relevant divisions, and relevant business units, etc.
Response Flow for Quality Issues

Quality Activity Cycle

Each fiscal year, each business unit drafts a priority quality policy for their own business unit,
promotes activities such as CS activities and defect elimination activities based on the148

Meiden Group Sustainability

President’s Quality Management Policy and the directions of the top management, etc., with theaim of increasing customer satisfaction.
Quality Activity Cycle

InitiativesみImproving Quality Management

Examining Tasks from the Perspectives of “No Defecting Unit Accepted,” “No
Defective Unit Made Here,” and “No Defective Unit Shall Leave Here” to Achieve
Exhaustive Quality Management
The Meiden Group has determined items that need to be managed from the perspectives of“no defective unit accepted,” “no defective unit made here,” and “no defective unit shall leave
here,” in order to improve quality, and we conduct activities accordingly.
(1) Reducing defects in outsourced and purchased products
Check and provide instruction regarding suppliers’ process control and shipping inspection,and review the content of Meidensha’s receiving inspections(2) Reducing defects from insufficient consideration and inattention
Reducing defects from insufficient consideration: Prevent faults by focusing on changes
through design FMEA and process FMEA
Reducing defects from inattention: Review QR maps, procedures, and standards, analyze
background factors, and implement response measures(3) Reducing internal defects
Analyze and respond to defects in processes (internal defects) and leverage this to reduce
external defects
149

Meiden Group Sustainability

(4) Preventing outflow of defects
Clearly outline tests that ought to be conducted internally and on-site, and make sure they arethoroughly conducted

In particular, under Medium-term Management Plan 2024, we analyzed the results of Mediumterm Management Plan 2020, and identified Meidensha’s weaknesses. We are overcoming ourweaknesses and promoting improvement of quality management by conducting the following
activities at all companies.

Improvement at the Supplier Management Level

The quality of outsourced and purchased products varies widely according to the technologicallevel of suppliers. We believe it is important to understand the technological level of suppliers
and to provide instruction for improvement. To that end, we conduct quality audits andinstruction of suppliers, which leads to a reduction in defects of outsourced and purchased
products.

Reform of Receiving Inspection Items

In addition to improvement at the supplier management level, we conduct inspections of
outsourced and purchased products in the course of receiving inspections, and prevent flow of
defective products into internal processes. We promote optimization of inspections bycomparing receiving inspection items of each business unit for each type of product andconducting an overall evaluation.

Identification of 3H* Risks and Response Measures

Using design FMEA, we conduct DR that clarify new points, changes, usage conditions, etc. For
mass produced products, we prevent process faults by focusing on changes in the process
FMEA, which leads to a reduction in defects. A risk map is used to assess the level of risk andcreate a mechanism for efficiently identifying risks by clearly stipulating the level of DR. *3H:
Hajimete “first time,” Henkou “change,” Hisashiburi “first case in a long time”)

150

Meiden Group SustainabilityImproved Quality of DR (design review)

We clearly stipulate DR levels by determining the level of risk using the risk map. With regard to
DR that is deemed to be important, we operate a “key person system” that requires
participation in DR wherein experts in each product field are nominated each time DR isconducted. Through DR by experts, we create an environment where extensive content is
considered and risks can be identified, which results in high-quality DR. In order to facilitate
nominating and requesting the participation of experts in DR throughout the organization, a listof registered key person is made available throughout the company.. Furthermore, we havecreated and we implement and strictly manage a system of notifying managers andadministrators of remaining items so that processes do not proceed without resolving mattersthat have been identified and matters that require consideration, etc., through DR by thedeadline that has been set, in order to reduce the risk of defects arising from unresolved
matters.

Applying Lessons from Past Defects

We have created and operate a system to convert information about defects that have arisen
into easily applicable knowledge and to facilitate the accumulation and application of thisknowledge. We then apply this knowledge to subsequent development and design to ensurethat similar defects do not arise in the future.

Establishing and Complying with Standards and Procedures

We manage management items and methods in each process through a Quality Control
Process Chart (QC Process Chart) that we call the QR Map. By applying this QR map, we areable to ensure that all tasks are completed and that everyone completes tasks at the samelevel, which enables us to reduce the risk of defects arising due to the variations among
personnel. This QR map is linked to standards and procedures to promote tasks in eachprocess. We prevent recurrence of past defects and occurrence of similar defects byconducting an overall examination and revision of these standards and procedures to ensurethat their content relates to prevention of recurrence of defects or occurrence of similar
defects. Furthermore, we encourage filling in the Quality Control Process Chart (QC Process
Chart) so that the implementation status can be confirmed by third parties.

Preventing Outflow of Defects

We must not allow any defects to leave the Company. In order to achieve this, it is important to
conduct thorough testing. There are many products for which it is not possible to conduct all
tests in-house. Therefore, we clearly differentiate tests that should be conducted in-house andtests that should be conducted on-site, and make sure we conduct them accordingly.

Quality Analysis of Parts and Materials to Prevent Defects

At the Materials & Semiconductor Device Analysis Center, we promote activities to improve
product quality and prevent defects through analysis and reliability evaluation ofsemiconductor devices and materials that are used in our products, adopting “improving
product quality,” “creating new products,” and “consideration for the environment” as our basic
151

Meiden Group Sustainability

policies.
If new parts and components such as semiconductor devices are used, they do not only
undergo evaluation of variation in electrical characteristics and failure analysis, but (1) they
undergo non-destructive inspection, (2) they are removed from packaging and further
examined, and (3) the internal structure is examined by taking cross-sections etc., to evaluate
whether they comply with internal standards. We also actively work to achieve long-term
reliability and have a system of checking the potential effects of a range of stresses such asheat, humidity, and corrosive gasses.
Also, we established screening technology for phthalates contained in plastics, in accordancewith trends in environmental regulations and amendments to the RoHS directive, in order toprovide products that customer can use with confidence.

X ray transmission observation ofelectronic components

Evaluation of electrical characteristics ofsemiconductor devices (power device
analyzer)

Coexistence of Limit State Design and Product Quality

At the Analysis Center, we conduct research and development relating to improving the
precision of vibration analysis and obtaining more material strength data in order to achieveboth product competitiveness and product quality through limit state design. If productcomponents are made as small and light as possible, strength can be an issue where it was notin the past. We are therefore improving the precision of vibration analysis by conducting
vibration analysis and testing of each component and whole product. We have also introduced
high-speed fatigue testing equipment to obtain more complete strength data for materials suchas copper, which is used in heavy electrical products.
For example, when conducting vibration resistant design for the switchboard of electricalequipment, we achieve reliable products by conducting vibration resistance analysis simulations
from the initial design stage, and conducting detailed evaluations of actual machine equivalentmodels once design is complete. Furthermore, we conduct evaluation of product life bycomparing results of vibration analysis of rotating machinery and materials strength data.

152

Meiden Group Sustainability

Structure analysis of switchboard

Ultra-high cycle fatigue testing of copper

Activities to Prevent Defects in Mass-produced Products·For mass-produced EV products, we are working to thoroughly manage quality in the following
ways.
(1) Manufacturing automation: Improve automation and eliminate human error(2) Image analysis: Detect missing goods, detect position of screw holes and cables, manage
fastening positions, etc.
(3) Temperature management: Manage shrink-fitting conditions and manage adhesive setting
conditions, etc.
(4) Centralized process data management: Link with a traceability database

Expansion of Remote Product Inspection Before Shipping

Due to the impact of the COVID-19 pandemic, it has become difficult to conduct pre-shipping
product inspections by customers visiting our factories, as before, so we started remote preshipping inspections. At these remote pre-shipping inspections, by connecting the inspection
factory via PC screen, customers at a remote location can check the status of the inspection
by viewing three screens: an image of the entire inspection site, an image of the inspector's
hands taken up, and an image of the inspection certificate. Customers can talk to on-site
inspectors through an internet meeting system using a microphone and a camera.
In addition, we established the Meiden Standard System to conduct remote pre-shipment
inspections and rolled out ideas and initiatives to meet the new needs of customers, such as byautomatically inputting inspection results in the inspection certificate in real time, bytransmitting measurement data from measurement devices such as products’ external
dimensions and coating thickness, etc. Going forward, we will continue to promote expansion of
products and factories, while achieving overall improvement by managing and rectifying issues
and carrying out remote pre-shipment inspections.

153

Meiden Group Sustainability

Development and Introduction of Image Inspection Equipment for Surface
Coating

We have developed and introduced surface coating image inspection equipment toquantitatively investigate the quality of coated surfaces. We are able to prevent variation inquality checks by replacing external visual inspection of metal sheets used for switchboards,
etc., with image analysis that quantifies color irregularities and roughness. For the inspection,
the inspector takes a photograph of the coated surface of the metal sheet using a microscopethat incorporates a CCD camera and an LED light. We are able to check the accuracy of thedata by loading the photograph data into a PC, quantitatively measuring the exterior of thecoated surface, and acquiring the image data in real time. In the past, half of the items thatwere deemed to be defective by pre-shipping inspection using switchboards and control panels
only had a defective surface coating, and were able to be shipped after recoating or polishing.
By introducing this equipment, we are able to reduce the cost of recoating and polishing
because of defective surface coating by reducing the number of defects due to quality ofcoating to zero. Going forward, we aim to reduce cost and shorten time by reviewing conditions
such as the amount of coating and time spent polishing and washing, etc., using coating
accumulated evaluation data, and by optimizing coating processes.

Surface coating image inspection
equipment
154

Meiden Group Sustainability

Quality Reform Activities for Overseas Subsidiaries

For overseas subsidiaries, we have introduced a mother factory system in which the domestic
production plant is in charge of starting up production and providing training guidance foroverseas subsidiaries. We provide support and guidance for overseas subsidiaries through themother factory, which excels in technology, development capabilities, quality control, etc., and isfully equipped with comprehensive management capabilities for plant operations. We work toincrease the competitiveness of overseas subsidiaries and promote further globalization by
actively providing support such as dispatching engineers and managers from Meidensha andproviding the required technology.

Promoting Initiatives to Collect Customers’ Needs

In order to provide products and services that satisfy our customers, we are gathering andanalyzing the needs of our customers on a daily basis, including information and requests
provided by customers, complaints, and market trends, and implementing activities that lead toconcrete actions such as proposing solutions, developing new products, and engaging inservicing and various improvement activities.
Furthermore, at factories in Japan, we ask customers who have visited our facilities throughfactory observations or pre-shipping inspections, etc. to fill in a customer satisfaction survey.
The in-person opinions of our customers are shared with relevant divisions to provide
information on customer needs, leading to rapid development of new products, specificproposals, and work process improvements, etc.
Flow of Initiatives for Finding Customer Needs

155

Meiden Group Sustainability

Composition of Customers’ Needs (FY2020)

24 Hour Support for Customers’ Facilities

In order to respond to urgent trouble or product enquiries in a timely fashion, the Customer
Center has staff ready to provide support to customers 24 hours a day. We also use theCenter to provide remote monitoring services for substation equipment and wind power
156

Meiden Group Sustainability

generation equipment, etc.
We contribute to the optimal operation of our customers’ equipment.

ISMS certification(ISMS: Information Security Management
System)24 hour Customer Center

Developing Human Resources to Support the Supply of Highquality Products
Education Relating to Quality Management Technology

In order to increase all employees’ awareness of quality and impart basic knowledge of quality
management, we conduct education relating to quality management technology for all
employees that are involved with manufacturing, even if they are not directly connected to the
Production Business Unit. We conduct training that includes drills relating to the role of quality
management, how to promote improvement (Kaizen), seven tools for quality control, analysis
based on the five whys, and supplier engagement education, etc., for each level of employee
such as new employees and group leaders. We are in the process of rolling out the curriculum
for Japanese and overseas subsidiaries.
157

Meiden Group Sustainability

Training scene

Technical Skills Maintenance Training for Safety and Security

At the technology center adjacent to Numazu Works, we conduct training programs forworkmanship and technical skills maintenance engineers. We raise engineers who contribute to
the stable, safe, and efficient operation of customers’ equipment through practical training
using real equipment.
Instructors are veteran engineers with extensive real-world experience and the curriculum isformulated to allow participants to touch and experience actual equipment, such as extra highvoltage and high-voltage receiving substation equipment, computers, power converter
equipment, generators, and rotating machinery. Maintenance training is conducted each year
for customers to whom Meidensha’s products have been supplied. Participants deepen theirunderstanding of the internal composition of machinery through cross-sectional models of
products, and gain experience of actually operating disconnecting switches and circuit
breakers, testing protective relays, and using generating equipment and inverters, etc.
As one of our 120th anniversary projects, we have granted internships to two Thai university
students each year since fiscal 2017, and we have conducted technical education for these two
university students in fiscal 2019 as before.
At Manabi-ya, which is the new technology center established at Numazu Works in October
2020, we have constructed an educational system utilizing AR(augmented reality), and areusing the latest ICT technologies, such as the experience of maintenance at virtual full-scale
facilities, the visualization of invisible power distribution ranges, and the reference of veteranworkers' working know-how to smoothly pass on technologies in the maintenance and service
fields, where actual on-site experience is required, as well as to quickly development young
workers and improve technical capabilities.

Thai university student internships(product observation)

Technical training (creating sequencing
circuits for rotating machinery)Transmission of Skills Using Eye Tracking
158

Meiden Group Sustainability

We introduced the line-of-sight analysis tools called “Eye Tracking” and began an initiative to
visualize the hand and eye movements of skilled worker who has “good intuition” and “knacks”
for the purpose of transferring the skills and knowhow of skilled worker to the next generation.
The line-of-sight analysis tools, Eye Tracking is glasses with built-in small cameras. When worker
wears this glasses, the central camera records the field of view and captures the movement of
the hand. By having skilled worker wear these glasses, it is possible to visualize fine hand andeye movements that were previously in tacit knowledge domain.

The line-of-sight analysis by Eye Tracking

159

Meiden Group Sustainability

Home Sustainability

SocialSupply Chain Management

SocialSupply Chain Management
PolicyThe Meiden Group promotes supply chain CSR when procuring materials.
Whilst the Corporate Code of Conduct is based on the Corporate Philosophy, we ask all of ourbusiness partners to conduct activities in accordance with our Basic Procurement Policy for
CSR items that cover all of our business activities.
The Meiden Group Basic Procurement Policy
Compliance with applicable laws and social norms
Fair trade based on free competition
Consideration for the environment
Building healthy partnerships
Plan and Targets

The Meiden Group promotes enhanced supply chain management based on the basic policy of“Medium-term Management Plan 2024.”
We are working to conduct fair and impartial transactions, and to improve CSR further whilestrengthening partnerships to help business partners understand the importance of promoting
CSR in the supply chain. Furthermore, we hope to promote legal compliance, environmental
conservation, and community contribution activities, etc., with our business partners, with theaim of achieving mutual sustainable development.
We are continuing activities to support the acquisition of environmental management systems(EMS) certification by our business partners and enhancing CSR promotion by building
partnerships such as through follow-up education after EMS certification has been acquired,information security measures, and support for health and safety measures.
Organization

Promotion of CSR that Involves the Entire Supply Chain
Promotion of CSR that Involve the Entire Supply Chain

With regard to procurement of materials, we are committed to ensure fair transactions,
including compliance with the Antimonopoly Act and anti-corruption, in order to maintain fair,equitable and mutually developable transactions. Based on CSR that is promoted throughout all
business activities, the Meiden Group requests that its business partners and their suppliers
promote CSR, including such issues as “human rights, labor, health and safety, the environment,
fair transactions, and ethics (including prevention of corruption and bribery, etc.).” In order for
160

Meiden Group Sustainability

them to understand the Meiden Group approach to CSR supply chain management, we have
prepared the “Meiden Group Supply Chain CSR Promotion Guidebook”*1 and distributed it toapproximately 1,600 of our business partners in Japan.
The content is based on the Supply Chain CSR Deployment Guidebook produced by the Japan
Electronics and Information Technology Industries Association (JEITA) (published in August2006).

Dissemination and Explanation of the Procurement Policy to Business Partners
We supply the Supply Chain CSR Promotion Guidebook at the start of dealings, and requestthat all new business partners (100%) disseminate it and apply it at the time of the firsttransaction.
We directly request our business partners to comply with both the Meiden Group Basic
Procurement Policy and the Meiden Group Supply Chain CSR Promotion Guidebook at the
production plan explanatory meetings held at each of our production site.

The Meiden Group Supply Chain CSR
Promotion Guidebook

Risk Evaluation

Evaluation of Suppliers

We convey the importance of CSR and our philosophy to our business partners, including legal
compliance, environmental protection, and community contribution, which are the basic policiesof the Procurement Group. In addition to quality, delivery date, price, technological development
proficiency, and environmental certification, etc. we evaluate our business partners’ social
responsibility for the risks of environment and social issues such as human rights and labor,
fair trade principles, social contribution, environmental conservation, and management ofchemical substances.
Through this evaluation, we work to gain an understanding of business conditions relating tosocial issues such as climate change, biodiversity, environmental management, human rights,
and working environments, and then to identify suppliers which have a high-risk.
We conduct appropriate, fair, and impartial procedures for all business partners throughsurveys relating to CSR promotion and environmental conservation activities at the time of thefirst transaction.
161

Meiden Group Sustainability

Furthermore, we evaluate suppliers through “our business partners’ evaluation system” andissue a score card each year based on the results. (500 companies evaluated in fiscal 2020)

Survey relating to CSR activities andenvironmental conservation activities

Materials procurement score card
(example)

Response to the Conflict Minerals Issue

Meidensha has devised the Meiden Group Policy on Conflict Minerals Issue, and we added asection entitled “responding to the conflict minerals issue” to the Meiden Group Supply Chain
CSR Promotion Guidebook and clearly articulated our stance on the matter in January 2014.

Policy on Conflict Minerals Issue

The Meiden Group promotes prohibition of the use of conflict minerals (tantalum, tin, gold, andtungsten) mined in the Democratic Republic of the Congo and surrounding nations, which areused to fund armed group activities that repeatedly engage in human trafficking, forced labor,child labor abuse, or inhumane acts, etc.
The Meiden Group promotes responsible procurement of minerals in order to fulfill its
corporate social responsibility.
We conduct surveys of high-risk minerals as a due diligence measure, using the Conflict
Minerals Reporting Template (CMRT) developed by the Responsible Minerals Initiative (RMI).
In fiscal 2020*, we conducted a survey of materials that we had purchased from 380 major
suppliers in the previous year and received acceptable responses from 350 companies (91%).
If the surveys reveal that minerals have been used to support conflicts, we ask our business
partners to take corrective action to avoid using the relevant minerals, such as by changing
suppliers. Furthermore, if customers identify risky refineries, we ask business partners that use
these refineries to re-examine the status of their business dealings.
At present, we have not confirmed any relationships between our business partners and armed
groups, and we are conducting measures aimed at identifying refinery operators and ensuring
supply chain transparency.
* In fiscal 2020, we collected information on cobalt, and in fiscal 2021, we plan to conduct
surveys using the Cobalt Reporting Template (CRT).

162

Meiden Group Sustainability

Request to business partners
The Meiden Group considers ensuring a transparent supply chain and conducting
responsible procurement of materials and parts to be important matters. We request that
all of our business partners accept our Policy on Conflict Minerals Issue and cooperatewith our initiatives to source conflict-free minerals.

Promotion of Green Procurement

Based on our Basic Environmental Philosophy: “contribute to people, society, and the global
environment to make a world a better place to live,” we are proceeding with activities inaccordance with the Meiden Group’s Environmental Action Policies. In material procurement,
throughout the entire life-cycle to disposal, we try to make environmentally conscious products
and reduce disposal, and engage activities in protecting the global environment by energysaving, resource-saving, and minimizing the use of toxic chemicals, etc.
We view procurement of materials as part of our supply chain CSR activities. We drafted theGreen Procurement Guidelines to clarify our policies and request even greater understanding
and cooperation from our business partners.
We provide the Green Procurement Guidelines to Japanese business partners and we request
all new business partners (100%) to disseminate and apply at the time of the first transaction.
Furthermore, by issuing CSR surveys (including environmental activities surveys), we are able tounderstand our business partners‘ CSR promotion activities and environmental activities, andconduct risk assessment. They cooperate with our CSR procurement activities including green
procurement.
We have revised our Green Procurement Guidelines in light of the needs of the times. We
engage with a broad range of environmental issues that need to be considered by companies
such as promotion of reducing greenhouse gasses and efficient use of water resources andconsideration for biodiversity. We work with business partners to promote climate change
countermeasures.
We ask our business partners to understand the importance of global environmental
conservation activities and to cooperate our activities. Please refer to the Green Procurement
Guidelines (revised April 2020) for details.
Initiatives

Activities to Reduce Environmental Impact in the Supply Chain
Environmental Management Initiatives

When promoting environmentally conscious design, which forms part of our environmental
management activities, we operate an environmental BOM* management system that iscompliant with the regulations governing chemical substances in products.
The Meiden Group has stipulated two risk levels (prohibition and reduction) for hazardous
substances regulated by laws and regulations relating to chemical substances such as the
RoHS directive and REACH regulations. Based on the Green procurement guideline, we conduct
163

Meiden Group Sustainability

surveys of chemical substances contained in procured materials and expand environmentallyconscious products by promoting the elimination of hazardous substances.
* BOM: Bill of Materials

Reducing Environmental Impact by Building Environmental Management
Systems for Business Partners

We provide assistance not only for the Meiden Group but also for business partners, to build
environmental management systems (EMS) and promote the reduction of environmental
impact. We ask our partners to participate in these activities too, and promote the reduction ofenvironmental impact throughout the entire supply chain.
We ask our business partners to create environmental management systems. In particular, we
strongly recommend acquiring external system certification such as ISO14001 and EcoAction
21.

Promoting and Supporting EcoAction 21 Certification and Registration

In fiscal 2020, for the sixth consecutive year of the initiative, we held a study session (Greening
Program) for the EcoAction 21, an environmental management system endorsed by the
Ministry of the Environment, for small and medium-sized companies that have not yet acquired
environmental management, to promote and support certification and registration. As a result,seven participating business partners received certification. (A total of 131 suppliers haveacquired EMS and EcoAction 21 certification.) In consideration of the impact of the COVID-19
pandemic, the certification award ceremony has been cancelled for this fiscal year. Also, we
conducted follow-up education and individual visits for 90 companies that had received
certification before fiscal 2018, and provided them with opportunities for discussing withlecturers and sharing information on environmental aspects. However, we decided not to
conduct such events in fiscal 2020 in order to prevent the spread of COVID-19 infection. We
will continue providing support for the EcoAction 21 certification and registration activities ofour business partners, and aim to spread the environmental management systems and improvethe environment throughout the entire value chain.

Certification ceremony in Numazu

Follow-up education in Numazu

Implementation of Environmental Audits

We conduct environmental audits of our business partners. In fiscal 2020, we conducted
document review and remote audits during the COVID-19 pandemic. We also request our164

Meiden Group Sustainability

business partners who have not yet acquired an environmental management system (EMS) to
participate in EcoAction 21 study sessions.
Business Partners where Environmental Audits Have Been Conducted
FY202014 companies

Communication with Business Partners

The Meiden Group is conducting the following activities to build relationships with business
partners.
We are working to increase awareness of QCDSE and revitalize improvement activities of ourbusiness partners.

1. Gathering Real Feedback

Business partners are regularly visited by officers of Meidensha, the head of the Procurement
Group, and production engineering staff, who gather information such as issues andrequirements, which leads to improved functionality, quality, and productivity.

2. Supporting Health and Safety Measures

We conduct individual support using the Project to Support SME Workplace Safety & Healthwith the support of the Japan Industrial Safety & Health Association.
We dispatch health and safety experts to the sites of business partners. The experts offer
advice to improve issues with work sites and operations.

3. Business Efficiency and Improvement Activities

We conduct support for business improvement of business partners using ICT.
We promote activities such as study sessions and case studies with the support of the
Shizuoka Industrial Foundation.

4. Seeking Procured Items on the Website

The Meidensha website has introduced “instructions for initial transactions” and “transaction
application form” on material procurement, and we collect information on a broad range ofbusiness partners.

5. Using the Supplier Portal (web)We are using the supplier portal (web) to increase the efficiency of estimates, ordering, ATPand delivery tasks, and promote paperless operations through electronic information. We are165

Meiden Group Sustainability

conducting various investigations including the conflict minerals investigation, which takes theform of a survey, and confirmation of BCP implementation and damage incurred fromearthquakes and typhoons, etc.

6. Establishment of the Public Whistleblower System

Meidensha has established the Public Whistleblower System: contact person is an outside
lawyer (Law Office Hironaka), for the officers and employees of our business partners, in orderto promote appropriate dealings. We request our business partners to report or consult withthis contact point when they discover any violation of laws and regulations, inappropriate
behavior, or potential violation of laws and regulations by our employees in relation to business
transactions.
Details on the management of information, protection of reporter confidentiality, response toreports, etc., can be found on the Procurement Group webpage. (Only in Japanese).

Enhancing the Capabilities of Business Partners
Hosting of Meidensha Partners Meeting

We have held Meidensha Partners Meetings since fiscal 2019 in order to enhance two-way
communication with Business Partners and strengthen relationships. The President gives
messages to business partners concerning future Meidensha policies, and awards to praise theassistance and contribution towards business activities and production activities. He appreciatethem face-to-face, and reward exceptional activities and results. Since last fiscal year, thePresident has been visiting the award-winning business partners to present the awards in lightof the COVID-19 pandemic.

President’s message

Visit to business partners
and award presentation(FY2020)

Visit to business partners
and award presentation(FY2021)

Holding Production Plan Explanatory Meetings for Suppliers

Each year, we invite our major business partners to each production site in order to directly
share information, inform, exchange opinions, and communicate with our business partners.
Explanation of the Meiden Group’s procurement policy (purchase record and plan)
The record and plan of the business status of Meidensha and each business unit

166

Meiden Group Sustainability

Announcement of examples of notable improvement and sharing information to increasetechnical ability from business partners
Explanation of the Meiden Group’s environmental policy and green procurement policy, andrequest for cooperation from business partners

Holding Various Seminars, etc.

We hold seminars on process improvement and information security measures at our suppliers'
manufacturing sites as needed to improve their capabilities. In fiscal 2021, we held productexchange meetings, where we communicated and exchanged opinions with workers on site. In
collaboration with the Corporate IT Systems Group, we conducted on-site checks to ensure if
appropriate information security measures were being taken to prevent information leaks andprovided advice. Also, in terms of health and safety, we have commenced the workplace checksof our business partners using the Health and Safety Support Project in collaboration with the
Occupational Health and Safety (OHS) Management Division. There are limitations within the
COVID-19 pandemic; however, we are promoting ongoing support to the extent possible.

Product exchange meeting Information
securityinstruction

Project to Support Safety& Health

Enhancing Group Procurement Systems (education of
procurement managers)

Thoroughness of Absolute Compliance and Prohibited Matters of the
Procurement Headquarters

In order for the member of Procurement Group to behave in a proper manner, we have devised“absolute compliance matters” and “absolute prohibitions” as a code of conduct for theProcurement Headquarters so that all employees reflect on their own actions and do notcommit any inappropriate conduct.
We read the following items at every morning meeting and ensure that all employees know
them as a daily education; legal compliance, prevention of corruption, respect for human rights,
labor practices, consideration for the environment, quality, safety, and information security, etc.

Enhancing Group Procurement Systems

The whole Meiden Group is working to enhance procurement systems. We conduct regular
Meiden Group Procurement Meetings, and promote initiatives to improve our procurementbase and sharing of information.
167

Meiden Group Sustainability

Initiatives to Improve Our Procurement BaseBe thorough with legal complianceBe thorough with CSR procurement
Enhance risk management (BCP and internal control)
Enhance professional development

Education and Professional Development for Procurement Managers (as of FY2020)
Certified Procurement Professional qualification Attainment: 84%
system
Eco Test
Attainment: 82%
Education for new staff and reassigned personnel, 100% attendance
etc. (FY2020)

168

Meiden Group Sustainability

Home Sustainability

SocialHuman Rights

SocialHuman Rights
PolicyCompliance with ILO Labor Standards

Based on a fair and just employment system, we are creating workplaces that are conducive towork, and where each of the Meiden Group’s employees showcase their abilities as much as
possible. Furthermore, we respect the basic human rights, such as “Freedom of Association
Convention,” “Prohibition of Forced Labor and Child Labor,” and “Elimination of Discriminatory
Treatment in Respect of Employment and Occupation,” which are among the ILO’s* core labor
standards. We will continue and promote initiatives to protect human rights through humanrights trainings.
* ILO (International Labor Organization): A UN organization that gives recommendations andguidance to national governments with regard to improving labor conditions and social welfare.
Policies and Initiatives Aimed at Labor Issues

Item
Policies and Initiatives
Respecting human The Meidensha Corporate Code of Conduct includes “respect forrightshuman rights,” and stipulates that fundamental human rights shall be
respected by regarding people as individuals without discrimination
based on nationality, race, beliefs, gender, social status or otherfactors.
As a member of international society as well as of local communities,
we promote business activities while respecting cultures and customs
from a global perspective and working to achieve cooperation andharmony with local communities.
We also comply with all relevant laws concerning the prohibition offorced labor and abolition of child labor. We are conducting various
types of training and educational activities to achieve respect for
fundamental human rights.
Interaction withWe value conversations between employee representatives andemployee
management to ensure that employees can engage in meaningful
representatives
work. We have established a regular central labor-management
conference and regional labor-management conferences, and we areworking to improve the workplace environment according to thecircumstances of each site.

169

Meiden Group Sustainability

Item
Policies and Initiatives
Support for a living We provide a family allowance to support the lifestyles of employees
wage
who satisfy certain conditions such as carrying spouses and children
to provide for.
The Meiden Group Mutual Aid Association also provides various
types of condolence, sympathy, and celebratory monetary funds, aswell as loans for financial assistance required for the mutual support
and welfare of members. In addition, we have a home loan program
to receive funding from financial institutions when those who havesaved property accumulation residence fund eventually make apurchase.
Organization

Risk Management

Establishment of an Internal Hotline System for Compliance Violations (Internal
Hotline System)

If a human rights violation occurs due to Meidensha’s businesses, employees are able to reportto the Compliance Hotline, the Harassment Consultation Hotline, and the Public Whistleblower
System. All stakeholders (including individuals and local residents, etc.) have access to makeinquiries from outside the company using our external help-line. Consultations can be madeanonymously so as not to incur any disadvantage, and are handled with due care and attention
to information management.
Whistleblower System on Compliance
Initiatives

Promotion of Respect for Human Rights

Human Rights Education for Officers and Employees

The entire Meiden Group understands international norms (Universal Declaration of Human
Rights and International Bill of Human Rights) and is working to conduct education activities
focused on human rights. With the aim of ensuring “respect for human rights,” which is listed in
the Meidensha Corporate Code of Conduct.
We conduct periodic group training and visual education, relating to compliance andharassment for all Group employees and improve understanding and awareness by providing
opportunities for individuals to reexamine their workplace and views. We also conduct anger
management training for managers to raise awareness to respect the personalities and ideas of
170

Meiden Group Sustainability

others through training.
To strengthen our efforts in mental health, we conduct self-care training in each region foreach year of joining the company and each age bracket, as well as line-care training for
managers and supervisors.
Content of Human Rights Training (FY2020)

Content of Initiatives
Workplace discussions relating to compliance and humanrightsAnti-compliance and harassment training
Anger management training
Mental health training

Targets
All employees

All employees
Managers
Conducted in eachregionRegarding harassment, we have established an internal consultation system to respondpromptly while adhering to the principles of protecting the privacy and confidentiality of theuser. The system is available to Meiden Group employees as well as dispatch workers andcontractors. Information obtained through the system is used to conduct surveys of the user
and relevant parties, provide feedback after having understood the situation, and prevent
recurrence. The system provides an opportunity to implement recurrence prevention measuresand conduct individual education.
We have also included items concerning harassment in our employee awareness survey, whichallows us to observe trends each year.
Harassment prevention system

171

Meiden Group Sustainability

Home Sustainability

SocialLabor Practices

SocialLabor Practices
PolicyBasic HR Management Philosophy

As issues facing our customers and society as a whole become increasingly complicated andunclear, it is important to have personnel with the abilities to think flexibly and act courageously,
creating the value necessary to solve these issues in order to enhance corporate
competitiveness. For this reason, we are determined to achieve sustainable growth by focusing
on employing and developing competent personnel and creating an environment where each
person can derive pride and fulfillment from their work.
In order for the employees to maximize their abilities, it is important to promote diversity
management and create a workplace in which a diverse range of employees can participate
with a healthy mind and body. Specifically, by engaging as a group in initiatives such as
achieving a work-life balance, and improving occupational health and safety, we will enhance thecorporate value for the entire group.

Labor Practices Policy
Employment Policy

We are creating an employment framework that enables a diverse range of employees tomaximize their potential, irrespective of attributes such as age, gender, nationality, religion,
sexual orientation, or disability. We are focusing on diversity education at all levels, rethinking
human resource management systems and evaluation systems that can shape careers, andcreating an environment where each person’s individuality can be expressed.
Policy and Initiatives

Ensuring Fair and Impartial Evaluation and Treatment

Ensuring Fair and Impartial Evaluation and Treatment Meidensha conducts evaluation of results
and roles as part of an HR treatment system that places weight on the results of both
executives and regular employees in order to reform and enhance corporate character, with the
key word of professional development. Therefore, we have introduced management by
objectives to ensure that results are reflected in impartial treatment of employees. We holddiscussions to mutually confirm objectives and results indicators, etc., between superiors andsubordinates through objective-setting interviews and objective management results interviews
to ensure that there is no discrepancy in expected results.
172

Meiden Group Sustainability

Furthermore, we disclose our evaluation standards through the Company’s intranet and the
explanatory leaflet issued by the trade union, we periodically hold evaluation feedback
interviews for all employees that are subject to evaluation, and we focus on developing andfostering the abilities of individuals. In order to ensure impartial evaluation and treatment of
employees, complete understanding of the evaluator concerning the HR system and preventionof errors during evaluation, as well as communication between superiors and subordinates are
essential, so we conduct evaluator training, which includes evaluation and interview exercises,
for new managers.

Promoting Diversity Management

Meidensha is actively working to achieve diversity management to enable participation by adiverse range of people, irrespective of gender, age, or nationality, etc. We emphasize steadily
achieving work-style reform as expressed in the SDGs Action Plan 2020, which was released by
the Japanese government’s SDGs Promotion Headquarters. Creating a work environment withflexible work styles where individual employees are able to maximize their abilities and various
educational opportunities, etc., improves employee productivity and creativity, and leads to thecreation of a fulfilling workplace environment.
In the Medium-term Management Plan 2024, diversity is a key value of ESG promotion. We will
promote contribution to the realization of an inclusive society, organizations that allow
participation by diverse personnel, and work-style reforms in order to create innovation, bylaunching the Professional Development & Diversity Promotion Project which leverages
differences in attributes (race, gender, lifestyle, etc.) and initiatives to maximize the abilities of
personnel.

Promotion of Opportunities for and Participation by Female Personnel

Meidensha was evaluated for promoting women’s participation and advancement, and in
November 2017, for the first time in the heavy electric machinery industry, we earned the top
Stage 3 “Eruboshi” certification by the Minister of Health, Labour and Welfare.
In March 2021, we were granted Kurumin certification, as well as Platinum Kurumin, which is
granted to companies that conduct higher-level initiatives as companies that excel in providing
childcare support, by the Minister of Health, Labour and Welfare.
We continue to formulate action plans in line with the purpose of the Act on the Promotion of
Women’s Participation and Advancement in the Workplace, promote measures to encourage
the acquisition of childcare leave for men, and promote measures to actively recruit/train
female technical employees.

173

Meiden Group Sustainability

Eruboshi

Platinum Kurumin

Meidensha’s Original Work-Life Balance Support System

Up to 2 years of unpaid childcare leave (can be used even if the child is enrolled at achildcare center)
Paid maternity leave（有給）System for shorter working hours during pregnancy
System to support early return to work after unpaid childcare leave (additional annual leave)
Payment of transportation costs to childcare center
System for shorter working hours during nursing care for as long as the care is required (4day work week is possible)
System for up to 730 days of unpaid nursing care leave
System for working from home or from a satellite office
Expanded system to take leave for infertility treatment and system of shorter work hours for
employees receiving infertility treatment
Tie-up with company-operated childcare center
Expanded welfare service menu (support for unauthorized childcare center fees andexpanded nursing care services, etc.)
Short-term leave system to promote childcare leave for men (1 month paid)
Special leave to promote participation in childcare for men (spouse maternity leave)
Support for temporary childcare services (assistance with subsidies for day care center fees,
etc.)

FY2020 Initiatives

Meeting to Exchange Ideas on Diversity

Under Medium-term Management Plan 2024, we conducted employee diversity surveys, to giveconsideration to how to promote Diversity 2.0. At the meeting held in December 2020, weshared the results of this survey, as well as the status and results of internal initiatives, etc.,with participants. We introduced the case study of a business unit that introduced female
uniforms, conducted a presentation of each generation’s attitudes toward work, and shared
opinions.
174

Meiden Group Sustainability

Presentation of case study (introductionof female uniforms)

Introduction of Mandatory Retirement at Age of 65 and System to Extend
Employment to Age of 75

In April 2020, Meidensha raised the mandatory retirement age from 60 to 65 years of age forall employees. Until then, a re-employment system had been in place, which enabled employees
to be re-employed on annual contracts as special fixed-term employees until the age of 65.
However, going forward, all employees will continue their employment until the age of 65. We
have also raised the level of remuneration so that older employees can enjoy about the samelevel of remuneration as when they were 60 years of age, depending on performance, in orderto facilitate more meaningful work for experienced senior employees. We hope to promote
successor development, improve quality, and enhance customer service by leveraging theknowledge and experience of senior employees more so than in the past.
Furthermore, we have established a subsidiary (MEIDEN MASTER PARTNERS CORPORATION)
to provide flexible workstyles to senior employees. For employees who wish to work reduced
days/hours, we have established a system that allows them to transfer to Meiden Master
Partners and work as temporary employee at our office. Work that accommodates the lifestyleof employees and side-jobs are now possible, and we are working to secure employment by
supporting diverse work styles.
Over and above, on April 1, 2021, the Act on Stabilization of Employment of Elderly Persons
was amended to require companies to make the best effort to achieve the goal of securing
employment for employees aged 65 and over. In January 2017, we have already introduced the"Elder System," which allows employees to work from the age of 65 to a maximum of 70, andfrom October 2020, we raised the maximum age to 75. Under this system, employees cancontinue to work after the age of 65 if they meet certain conditions, and veterans who haveonce retired can be rehired. Going forward, we will continue to develop a workplaceenvironment where seniors can play an active role with no worries.

Senior employment system

September 2001: Introduction of the extended employment system
April 2006: Introduction of the re-employment system
April 2013: Revision of the re-employment system (extended to all employees who apply)
January 2017: Introduction of the elder system
175

Meiden Group Sustainability

April 2020: Raised the mandatory retirement age from 60 to 65 years of age
October 2020: Revised the elder system (made it possible to work up the age of 75)

Initiatives to Employ People with Disabilities

We established the special subsidiary company, MEIDEN UNIVERSAL SERVICE LTD., in order tocreate opportunities for people with intellectual disabilities to work, and thereafter we havebeen expanding the scope of employment at each manufacturing facility through branch
deployment, etc. In 2015, MEIDEN UNIVERSAL SERVICE LTD. received a commendation fromthe governor of Gunma Prefecture as a “business of excellence for the employment of people
with disabilities in Gunma Prefecture” for its contributions to employment and occupational
independence for people with disabilities over many years.
Meidensha also promotes employment of people with disabilities. From 2021, we aim toincrease the number of workplaces that welcome people with disabilities and promotecompany-wide hiring activities.
Ratio of Employees with Disabilities (Meidensha and MEIDEN UNIVERSAL SERVICE)
Item
June, 2016 June, 2017 June,
June, 2019 June, 20202018/th>Ratio of Employees 2.27
2.24
2.24
2.42
2.50
with Disabilities (%)

Promotion of Participation by Foreign Employees

As an aspect of our effort to promote diversity, the Meiden Group employs people irrespectiveof nationality, and they are also active in various fields including sales, development and design
after joining the Company. We also support them in various ways so that they can get used towork and life in Japan as soon as possible, as well as individually appoint their training
personnel and provide various support to each and every one of them in order to improve work
skills.

Creating a Comfortable Workplace Environment for Employees from a Variety
of Cultural Backgrounds
Since fiscal 2017, we have established prayer spaces at some offices to create a work
environment that makes it easier for employees from various cultural backgrounds to work.

176

Meiden Group Sustainability

Work Style Reform

Rolling Out “Smart Work 2024” ― Toward reduction of total annual working
hours ―The Meiden Group promotes reduction of work outside of regular hours and taking leave as animportant management issue. We are rolling out Smart Work, which promotes reduction ofannual working hours. Even during the COVID-19 pandemic, we achieved our targets foraverage hours of overtime and annual working hours under Smart Work 2020 by each
employee implementing new working styles.
Under Smart Work 2024, as we transition to a new normal way of working, we have set a newtarget to create a working environment that is conducive to work, in the Professional
Development & Diversity Promotion Project. In order to achieve the targets for fiscal 2024, weare continuing to promote activities such as industrial innovation and improving efficiency
through robotic process automation (RPA), etc., as well as telecommuting.

Vision and Target Values of “Smart Work 2024”
We will realize work styles based on legal compliance by reviewing and improving the work styleitself, and eliminating working on holidays and overtime on weekdays.
People worked
Average hours of Total annual
overtime >80
overtime
working hours
h/monthFY2024 targets
Achieved Zero
19 hours/personUnder 1,900
monthhours/person<Reference>Smart Work 2020
Peopleworkedovertime>80h/monthTarget value
Zero

Peopleworkedovertime>720
h/yearZero

Average
Averagedays of paid hours ofleave used overtimeup

Total annual
working
hours

20
24
1,950 hours
days/person- hours/person- /person
year
month
Fiscal 2020 results* Achieved Achieved 17.3
24.3
1,990
Zero
Zero
days/person- hours/person- hours/person
year
month
* Paid leave, overtime, and total working hours are average figures per person at Meidensha
and Meiden Engineering
177

Meiden Group Sustainability

Promoting Flexible Work Styles (Establishment of Satellite Offices)

In our Smart Work initiatives, we have been focusing on implementing strategies to improve
productivity and realize a positive workplace environment.
As part of this, we expanded our satellite office at the Numazu Works in September 2018.

Numazu Works Satellite Office

In August 2019, the head office refresh space "Meiden Plaza" was completely renewed, andenvironments have been created where employees can use in various scenes, such as being
able to use it as a satellite office for business travelers from other districts. The space isbroadly divided into four areas (meeting area, café area, satellite area, and Skype area). The
concept of space is different for each area, and users can use it according to the application of
the day. In addition, new private seats have also been installed, so anybody can use the area
not only for lunch with colleagues and friends at work, but also feel free to eat lunch alone. In
addition, a large-scale projector and broadcasting equipment have been introduced and can beused as a seminar venue for about 100 people. The space also functions as a company-wide
disaster response headquarters in the event of a disaster.

The refurbished Meiden Plaza. The layout is easy to use for individuals and groups.
In March 2020, we completely renovated lounge in the R&D Center. We changed the namefrom “Lounge” to “Relaffice” (a conjunction of “relax” and “office”), to reflect an innovative
space that is more useful to employees.
Not only useful as a satellite office, it also features a roundtable space for small group
discussions and active exchanges of ideas. This bright and invigorating space allows employees
to work in a refreshing environment.

178

Meiden Group Sustainability

The General Research Laboratory Relaffice: Available for versatile use than before.

Creating a Fulfilling Workplace
Personnel Treatment System

In April 2015, we revised our personnel treatment system for general employees to give
employees an incentive to contribute to the Company and to further improve their motivation.
The system aims to operate personnel treatment that can reward employees with higher
contributions, by balancing the "role" and "contribution" of employees, with a system that allows
multi-truck type qualification and treatment according to their degree of contribution.
Furthermore, in order to be able to respond to a diversity of work style, it is also a system thatallows both executives and general employees can work in a limited area.

Diagram of the Personnel Treatment System

179

Meiden Group Sustainability

Major Initiatives
1. MBO
Performance
Measuring System

In order to ensure high evaluation transparency, we use the MBO(management by objectives) performance measuring systemcoordinated with MAP activities*.
Meidensha’s reform and improvement activities (MAP = Meiden
Advantage Program)
2. Self-Reporting The self-reporting system helps employees develop personal talent
Systemand form career plans.
3. Meister Program We operate a Meister system that specially treats employees who
contribute to the Company with outstanding skills as highly
specialized professionals. We have certified 21 certified personnel as
Meisters from 2008 to 2020.
4. Job Rotation
We have adopted a job rotation program to develop the abilities of
Systemour young employees.

Ensuring a Complete Welfare System to Support the Lifestyles of Employees
and Help Them to Refresh
1. Housing Lease System

We have a housing lease system that caters to people at all stages of life, from single
dormitories for people that have newly joined the company through to family housing andhouses for married couples. In addition, we offer full support systems for transferees in orderto relieve any strain placed on them, including a system of providing assistance to rent
appliances in addition to leasing corporate housing.

2. Welfare Service

We have introduced a general welfare service as a system to meet the diversifying needs of
employees. As a service unique to Meidensha, there are tickets for lodging and popular themeparks, an additional Company assistance to specific menus such as childcare/nursing care. In
addition to a menu that enhances leisure time for the purpose of family travel and refreshment,a menu is also prepared to support the balance between work and private life, with the aim offurther enhancing the system.

3. Cultural Events and Club Activities

Various cultural/sport events are planned and held at each business office or sites for the
purpose of employee interaction, refreshment, and overcome lack of exercise. Sports events
held on holidays, such as sports festivals, provide opportunities for employees and theirfamilies to socialize, and they have become regular events each year.
In fiscal 2020, amid the COVID-19 pandemic, we collected photographs with messages writtenby employees, a theme song based video message to invigorate the Meiden Group, and posted
it on the internal portal site, as part of an initiative for employees to encourage each other. We
180

Meiden Group Sustainability

also held a company-wide online event at which teams work together to answer quizzes.
In addition, there are a variety of company-recognized circles in cultural/sports fields, andthrough these activities, employee's friendships are promoted beyond workplaces and ages.

Internal bowling tournament

Soccer spectator tour

Meiden Group Sports Festa

Club activities

Communication Revitalization Initiatives
Industrial relations

Meidensha has concluded a labor agreement with the Meidensha Union and we periodicallyexchange opinions and conduct consultations about management policies, business conditions,and the working conditions of employees at the Central Management Conference and theCentral Staff Gathering. We are promoting the creation of an environment where employees
can securely work without interruption because labor and management respect each other’s
positions and sincerely engage in dialog.

Employee Awareness Survey

We conduct an annual employee awareness survey for all employees. Each year, the response
rate is close to 95%, demonstrating how much our employees value the survey. The survey
comprises seven sections, which are “vision and management policy,” “motivation,” “career,”“management,” “evaluation systems,” “diversity,” and “workplace environment.” The purpose of
the survey is to statistically understand what employees feel about their work, working
conditions, and other general company-related information. In addition to the numerical results
181

Meiden Group Sustainability

of the survey, we also evaluate the various measures and initiatives based on what employees
really think written in the free description section, and use them for future measures. We
further hold workshops for the head of each business unit and provide feedback andopportunities for discussion of results. Information gained from survey results and exchangesof opinion is reflected in the following year’s business unit targets.
Results Data

HR Data

Basic Data

Employees (only Meidensha)

Number of
employees(nonconsolidated)
Domestic
subsidiaries
Overseassubsidiaries
Number of
consolidated
employees*1
Number of
foreign
employees(nonconsolidated)
Domestic
subsidiaries
Number of

Male
FemaleTotal
Male
FemaleTotal
Male
FemaleTotal
Male
FemaleTotal
Male
FemaleTotal
Male
FemaleUnits
PeoplePeoplePeoplePeoplePeoplePeoplePeoplePeoplePeoplePeoplePeoplePeoplePeoplePeoplePeoplePeoplePeople182

FY2018
3,294
519
3,813

FY2019
3,367
557
3,924

0

0

0

0

9,297
16
7
23

9,599
17
8
25

FY2020
3,371
571
3,942
3,056
469
3,525
1,642
358
2,000
8,069
1,398
9,467
21
11
32
6
2

Meiden Group Sustainability

foreign
employees
Overseassubsidiaries
Number of
foreign
employees
Number of
foreignconsolidated
employees*1

Total
Male
FemaleTotal
Male
FemaleTotal

Units
PeopleFY20180PeoplePeoplePeoplePeoplePeoplePeople％Proportion of all
employees
accounted forby contractors
and temporary
workers
Average age
Male
Age
Female
Age
Total
Age
Years ofMale
Years
employment
Female
Years
Total
Years
Number ofMale
Peoplemanagers*2
FemalePeopleForeigners People
Managers ofMale
Peoplelevel of general
FemalePeoplemanager orabove*2
Foreigners People
Officers*2
MalePeopleFemalePeopleForeigners People

183

FY20190

FY2020
8

0

0

1,923
11.8

1,974
13.7

1,510
354
1,864
1,537
367
1,904
13.8

41.7
43.4
42.0
17.9
20.2
18.2
914
37
3
189
3
0
34
0
0

41.7
43.1
41.9
17.6
19.6
17.9
932
36
4
192
3
0
34
0
0

42.9
43.4
43.0
18.7
20.0
18.9
973
40
6
214
5
0
34
1
0
Meiden Group Sustainability

Units
FY2018FY2019FY2020Executive
Male
People23
24
24
officers*2
FemalePeople000Foreigners People000Proportion of Managers ％
3.88
3.70
3.95%
women*2 *3Managers ％
1.56
1.54
2.28%
of level ofgeneralmanageror above
Officers ％
0
0
2.86%
Executive ％000
officers
Number of people with
People94103
108
disabilities employed*4 *5
Rate of employment of
％
2.24
2.42
2.5
people with disabilities*4 *5
Number ofMale
People46
65
75
employees
FemalePeople11115leaving thecompany
Total
People57
76
80(voluntary)
Rate of
Male
％
1.2%
1.6%
1.9%
employees
Female
％
0.3%
0.3%
0.1%
leaving thecompany
％
1.5%
1.9%
2.0%
(voluntary)*6 *7 Total
Rate of union membership ％
64.4
64.7
65.1%
Annual average salary*8
Yen7,707,752 7,528,871 7,508,585*1 Applicable organizations: The Meiden Group*2 As of March each year
*3 Number of female managers are divided by number of total managers.
*4 Applicable organizations: Meidensha and special subsidiary*5 Legally mandated employment rate: 2.2% (2.3% from March 2021)
The number was calculated in consideration of those with severe disabilities, etc. The specificnumber was 75.
*6184

Meiden Group Sustainability

Ratio of employees leaving the company is calculated as follows: Number of people that havevoluntarily left their position in the last fiscal year as of the end of each fiscal year/number of
employees as of April 1 each fiscal year
*7 Ratio of employees leaving the company is for fiscal 2018
*8 There is no difference in basic salary between men and women at the Meiden Group.
Number of Employees by Age (only Meidensha) (as of March 31, 2021)

Under 30
30-39
40-49
50-59
60 or over

604
682
734
1,072
279

Male

105
67
195
178
26

Female

709
749
929
1,250
305

Total

Graduate Recruits (only Meidensha)

University graduate Junior/technicalHigh school Total
college graduates graduates/other
Male Female Total
Joined April 54 11
65 5
27
97
2018
Joined April 60 15
75 5
47
127
2019
Joined April 52 16
68 6
35
109
2020
Joined April 55 14
69 9
42
120
2021
* University graduates includes those with master’s degrees and doctorates. Junior/technicalcollege graduates includes those who attended colleges of technology

185

Meiden Group Sustainability

Mid-Career Hires (only Meidensha)

2017.4 － 2018.3
2018.4 － 2019.3
2019.4 － 2020.3
2020.4 － 2021.3

University graduate
Male Female Total
29
3
32
28
4
32
45
1
46
40
4
44

Other
Male Female
2
5
24
7
12
1
10
3

Total
39
63
59
57

Work Style-Related (only Meidensha)

Units

FY2018 FY2019 FY2020
16
12
6
101
104
76
11
11
5
112
115
81
1
1
4
34
43
32
14
9
5
49
53
41
100
100
100
100
100
100
100
100
100
1
4
3
23
23
23

People taking maternity leave
PeopleNumber of employees Male
Peoplewith the right to takeFemale People
parental leave
Total People
People who took parental Male
Peopleleave(within1 week)Female People
Total People
Rate of return afterMale％leave of absence forFemale ％child care purposes
Total ％
People taking family care leave
PeopleAverage days of paid leaveDays
allocated
Average days of paid leave taken Days
14
Rate of taking paid leave％
61
Average total hours worked perhours/year/person 2,019
year*1
186

16
68
1,978

15
64
1,980

Meiden Group Sustainability

*1 Annual total hours worked: The actual hours worked over the course of a year, comprising
official working hours plus overtime minus leave taken.
Proportion of Employees that Underwent a Periodic Review of Results and Career Development(only Meidensha)

Proportion of employees thatreceive feedback interviews

MaleFemaleTotal
Managers
Regularemployees
Total

187

Units FY2018 FY2019 FY2020％ 96.593.7
94.9％ 98.895.6
97.5％ 96.996.9
96.9％ 98.4
92.3
94.6％ 96.1
94.7
95.5
％

96.9

96.9

96.9

Meiden Group Sustainability

Home Sustainability

SocialHR Development

SocialHR Development
PolicyHR Development Policy

We value our employees as the foundation of the Company and support each one to grow andfulfill their potential.
1. We clearly state the required qualities and abilities for employees, and conduct systematictraining in order to implement and promote our business strategy.
2. We provide each employee with opportunities to engage in self-directed and multifaceted
learning.
3. We create an environment that is supportive of employees embracing new challenges.
Plan and Targets

We implement many training programs to encourage employee growth in different aspects as
an employee, member of society, and professional.
As the business environment became increasingly unclear, under Medium-Term Management
Plan 2020, we introduced new programs to work to enhance technology for increased
corporate competitiveness and education systems to develop the next generation of managers.
As technological innovation centered on digitalization further accelerates and cross-industry
collaboration progresses, under Medium-Term Management Plan 2024, we are focusing on
creating the value necessary to solve issues relating to corporate competitiveness and training
personnel to think flexibly and act courageously in order to enhance corporate
competitiveness.
Furthermore, continuing development of global operations offers increasing opportunities forstrategic alliances such as technical collaboration with foreign companies, as well as working
with people with differing viewpoints or abilities.
We are promoting growth through opportunities to work with diverse personnel, such as our
system of offering staff exchanges with local employees from overseas subsidiaries, the foreign
trainee system, and the overseas assignment system.

188

Meiden Group Sustainability

Organization

Training system

Level-Dependent CurriculumThis training facilitates understanding of the roles, abilities and skills required of each age
group or qualification level. Smooth growth and implementation are expected from this training.

Selective ProgramThis training hones the way of thinking, skills, and practical abilities to solve management
problems with the aim of enhancing management capabilities.

Optional ProgramThis training teaches the knowledge and skills necessary for employees to achieve their own
career goals.

Technical Training

This training teaches product knowledge according to the technical level of the employee.

Self-Development and Acquisition of Qualifications

When the prescribed correspondence course is completed, we will cover 60% of course fees or
the full amount if completed with high grades.
We provide incentives for acquiring prescribed public qualifications at the time of acquisition.

189

Meiden Group Sustainability

Initiative

Development of Personnel with Abilities to Implement and Promote
Our Business Strategy
Extensive Technical Education

In fiscal 2018, we established the Meiden Youth Academy in order to enhance technicaleducation for young employees. We used to conduct technical education for technicalemployees; however, at Meiden Youth Academy, we provide opportunities to gain fundamental
knowledge about electricity, which is essential to understand our products and technologies,
for all workers in their first three years at the company, irrespective of whether they are in atechnical or administrative role.
In fiscal 2019, we launched the ICT Fundamentals Course at the Meiden Youth Academy, where
workers acquire software basics, concepts, and information literacy from a young age, in orderto develop human resources who revitalize the promotion of business reform through digitaluse and make business proposals.

Acquisition and Transmission of Techniques and Skills

In October 2020, we opened a technical training center at the Numazu Works, in order torapidly train technicians and to pass on techniques and skills.
At the technological training center, we provide a full range of experiential educational content
through technical and skills education instructed by coaches led by skilled workers, as well as
190

Meiden Group Sustainability

facilities that use VR (virtual reality) and augmented reality (AR), and systematically develop andimprove the level of technicians. This facility is also open to customers and local residents.

Technological training center (Manabi-ya)(opened in October 2020)

Safety experience using VR

Developing the Next Generation of Group Personnel
Systematic Development of Management Personnel

Since fiscal 2019, we have established a new Career Development Management Program, a
training program to systematically and strategically develop the next generation of personnel.
We aim to develop personnel that can think and act with a broad perspective and outlook thatexceed the bounds of their own areas of specialty and roles by selecting and recruiting young
and mid-level personnel to attend business school and engage in professional exchange withpeople outside of their own business divisions, factories, and business units, engage in personal
exchange with overseas subsidiaries and Japanese subsidiaries, and engage in cultural
exchange through placement outside of the Group and at government institutions, etc.
We have newly added a young employee program to selective training in order tosystematically develop the next generation of management personnel.
In addition, we increase creativity and foster innovative mindset through absorption of diverse
knowledge and broadening experiences, by introducing the Innovation Professional
Development Program for the next generation of management and using professional
development measures to provide experience in new areas.

191

Meiden Group Sustainability

Systematic Development of Management Personnel

Local Staff Development

Since fiscal 2018, the Meiden Group has been conducting a Japanese exchange program for
local staff (employees of overseas subsidiaries) in order to develop personnel who are
candidates for leadership positions at overseas subsidiaries. The program includes interaction
with Meidensha management, observations at Japanese sites and factories to which products
are delivered, and on-the-job training at various workplaces for the purpose of increasing
preparedness to take on leadership roles and the knowledge necessary for top management
positions in the Meiden Group. This Group-wide interaction of personnel and creating personalconnections will bring the Meiden Group together.

Career Formation and Networking of Young Employees
Raising Awareness of Career Formation

We conduct a rotation system to systematically develop young employees. Based on a rotation
model, individuals share their career plans with their workplaces and the HR Department, andwe implement rotation through regular interviews, etc. Having young employees experience avariety of jobs supports early development of their ability and raises their awareness of careerformation.

192

Meiden Group Sustainability

Revitalizing the MFC Mentor System

In fiscal 2016, we introduced the MFC mentor system for the purpose of strengthening internal
connections between young employees and building an atmosphere of professional
development. The MFC stands for “Meiden Family Chain” with the idea that staff would form a
supportive familial bond where they would support each other like links in a chain. We refermentors as “seniors” and mentees as “juniors.” We also have groups consisting of multiple
pairs, which we call them “families,” that create bonds that go beyond divisions and business
units. We provide further impetus to activities by holding social events for families, and by
establishing a Promotion Committee for young employees to plan and implement companywide activities.
Composition of MFC Families

Results Data

Data

Number of Participants in Each Type of Training
Training TypeFY2017FY2018
Hierarchical
2,995
2,802
program
Selective
64
67
program
Optional
114
85
program
Technical
680
657
training
Total
3,853
3,611

193

FY20192,181

FY2020
2,463

123

130

57

55

934

1,090

3,295

3,738

Meiden Group Sustainability

Data Concerning Professional Development
Item
FY2017FY2018FY2019FY2020Total expenses 98,570,000 yen 97,940,000 yen 95,432,000 yen 71,664,000 yen
of educationand training*1
Total hours of 43,634 hours 43,332 hours 48,385 hours 51,583 hours
education andtraining*2*1 Excludes personnel expenses for trainers and management and administrative expenses fortraining facilities, etc.
*2 Training days x designated work hours x number of participants (excludes OJT and remotetraining).

194

Meiden Group Sustainability

Home Sustainability

SocialOccupational Safety and HealthSocialOccupational Safety and Health and Health Management
PolicyRolling Out Safety and Health Activities Based on the Top
Management’s Safety and Health Management Policy

The Meiden Group develops the “President’s Safety and Health Policy” and the “President’s
Health Management” every year, and rolls out occupational safety and health and healthmanagement activities based on them. The President’s policy is an overarching policy thatapplies to all people who work at the Meidensha group, including contractors as well as eachsite (works and branch) and construction business unit of Meidensha and its affiliates (English
and Chinese editions distributed to overseas affiliates).
We have explicitly stated that ensuring the safety and health of each employee is at the core ofcorporate management, and we aim to eliminate workplace accidents and maintain and improvehealth.
The Meiden Group Occupational Safety and Health Action Guidelines“Safety comes first before anything else” and “Nothing is more valuable than good health”

1. Basic Policy

The Meiden Group views the safety and health of employees as being central to management
value, and we implement our Corporate Code of Conduct of “working to ensure a safe
environment that is conducive to work and achieve comfort and affluence for employees,” andaim to be a leading health and safety company, through revitalization of health and safety
activities at all national and local businesses.

2. Action Guidelines(1) Based on the awareness that ensuring safety and health is reliant on good communication,
prevent occupational accidents and occupational diseases by conducting appropriately
managed workplace environment reforms with participation by all employees.
(2) Comply with relevant laws including the Industrial Safety and Health Act, as well as business
unit and workplace rules relating to safety and health.
(3) Sustainably boost safety and health awareness and conduct 4M reforms through the Safety
and Health Management System.
*4M: Management, machine, media, man(4) Identify and evaluate safety and health risks (risk assessment), including near-missincidents, and eliminate or reduce risks to acceptable levels in all workplaces.
(5) Enhance safety and health education, increase opportunities to experience the importance
195

Meiden Group Sustainability

of safety and health, and increase each individual’s sensitivity to danger.
(6) Promote work-life balance and work style reforms.
(7) Work to improve the health awareness and health literacy of each employee. (8) Enhancemental health promotion systems and promotion of workplaces that do not result in mental
illness.
(9) Prevent impairment of health due to smoking.
(10) Support prevention and response to ensure that employees can participate in a healthymanner for a long time.

Health Promotion: Aiming to Maintain and Improve the Health of
Employees

In order to realize the Meiden Group’s corporate philosophy of “Illuminating a more affluent
tomorrow,” it is important for employees to maintain their physical and mental health, and workwith vigor and purpose.
We are promoting initiatives as an organization to support the health of each individual such as
sharing the belief that “nothing is more valuable than good health” with all employees andsupporting employees’ own health activities.
Through these initiatives, the Meiden Group is working to remain a leader in healthmanagement.

The Meiden Group Health and Management Policy Statement

In order to realize the Meiden Group’s corporate philosophy of “illuminating a more affluent
tomorrow,” it is important for employees to maintain their physical and mental health and workwith vigor and purpose.
We are promoting activities as an organization to support the health of each individual such as
sharing the belief that “nothing is more valuable than good health” with all employees andactively supporting employees’ own health activities. Through these activities, we are working tobecome a company that enables employees and their families to live a vigorous and healthy
lifestyle.
(1) Promoting work style reforms to achieve work-life balance(2) Improving the health awareness and health literacy of each employee(3) Enhancing the mental health promotion system and promotion of workplaces that do
not cause mental illness(4) Preventing impairment of health due to smoking(5) Promoting health examinations, health advice, and prevention support for theprevention and treatment of health issues
With the above five pillars of health management, we pledge to work towards becoming acompany that provides a healthy and vibrant social life.
196

Meiden Group Sustainability

April 20, 2019
Takeshi Miida
President
MEIDENSHA CORPORATION

Meiden Group Health and Wellness Management Strategy Map*1 Indicator of a positive state of mind in relation to work
*2 Indicator of sense of community, agreement with Meidensha’s philosophy and vision, andwillingness to contribute, etc.
*3 Proportion of employees who took sick leave or were absent for a month or more for mental
health reasons*4 Employees evaluate their own work in the previous four weeks, with performance when welland uninjured acting as a baseline of 100%

197

Meiden Group Sustainability

Organization

The Meiden Group Organization System for Occupational Safety
and Health and Health Management

Promoting the Occupational Safety and Health Management
SystemMove from OHSAS 18001 to ISO 45001 Certification

In FY2015, the Meiden Group obtained OHSAS 18001 certification for all sites at the four main
Japanese production sites of Ota Works, Numazu Works, Nagoya Works and Kofu Meidensha
Electric Mfg. Co., Ltd., including on-site affiliates. Furthermore, Meiden Singapore Pte. Ltd.
obtained certification in FY2013, and the four remaining main overseas sites of Meiden
Zhengzhou Electric Co., Ltd., Shanghai Meidensha Changcheng Switchgear Co., Ltd., PT. Meiden
Engineering Indonesia, and Prime Meiden Ltd. obtained certification in FY2017.
198

Meiden Group Sustainability

Since FY2018, we have promoted penetration of the Occupational Safety and HealthManagement System to the entire Group, as well as transition to and expanded application of
ISO 45001 certification due to the need for international standards.

Acquisition of International Standard ISO 45001

In FY2019, we acquired joint certification for the four main Japanese production sites (OtaWorks, Numazu Works, Nagoya Works, and Kofu Meidensha Electric Mfg. Co., Ltd. *including
on-site affiliates) under ISO 45001. In FY2020, we expanded ISO 45001 certification to
Japanese workplaces other than production sites (Tokyo office, branches) and construction
business units (Plant Construction Headquarters). In FY2021, we plan to acquire certification
for four Japanese affiliates.
Going forward, we will aim to create and promote an occupational safety and healthmanagement system at all sites.
Results, Plan, and Targets

FY2020 Results●Results of Occupational Safety and Health Initiatives

Certification status of the occupational safety and health management system

1) Acquired ISO 45001
Area
Scope
Meidensha (factories, Research and Development Business Unit, Staff
Ota area
Business Unit, Gunma Branch), on-site affiliates** On-site affiliates: MEIDEN KIDEN KOGYO CO., LTD. / MEIDEN KOHSAN
CO., LTD., Ota Branch / MEIDEN FACILITY SERVICE CORPORATION /MEIDEN SYSTEM SOLUTIONS CORPORATION, Ota Branch / MEIDEN
UNIVERSAL SERVICE LTD., Headquarters
Numazu area Meidensha (factories, Research and Development Business Unit, Staff
Business Unit), on-site affiliates** On-site affiliates: MEIDEN SYSTEM MANUFACTURING CORPORATION /MEIDEN KOHSAN CO., LTD., Numazu Branch / MEIDEN SHOJI CO., LTD.,
Numazu Branch / MEIDEN SYSTEM SOLUTIONS CORPORATION,
Headquarters / MEIDEN UNIVERSAL SERVICE LTD., Numazu Branch /MEIDEN TECHNO SYSTEMS CO., LTD., Headquarters / MEIDEN PLANT
SYSTEMS CORPORATION, Equipment Factory / MEIDEN FACILITYSERVICE CORPORATION / MEIDEN CHEMICAL CO., LTD., Headquarters

199

Meiden Group Sustainability

Area
Kofu area

Scope
KOFU MEIDENSHA ELECTRIC MFG. CO., LTD. / MEIDENSHA CORPORATION(EV Business Division in Kofu and Electromotive Application Business Division)

Nagoya area

Meidensha (factories, Research and Development Business Unit, Staff
Business Unit), on-site affiliates** On-site affiliates: MEIDEN SYSTEM SOLUTIONS CORPORATION, Nagoya
Branch / MEIDEN UNIVERSAL SERVICE LTD., Nagoya Branch
Headquarters Meidensha (Research and Development Business Unit, Staff Business Unit,
other business units), local affiliates*area* Local affiliates: MEIDEN KOHSAN CO., LTD., headquarters / MEIDENSHOJI CO., LTD., headquarters / MEIDEN SYSTEM SOLUTIONSCORPORATION, Tokyo Branch / MEIDEN UNIVERSAL SERVICE LTD.,Tokyo Branch / MEIDEN TECHNO SYSTEMS CO., LTD., Tokyo Works
Northern Japan Construction Division / Western Central Japan Construction
Plant
Construction & Division / Plant Construction Division / Western Japan Construction Division
Engineering
Business Group
Hokkaido Branch / Tohoku Brach / Yokohama Branch / Kitakanto Branch /Branches
Higashikanto Branch / Shizuoka Branch / Niigata Branch / Hokuriku Branch /(including
Chubu Branch / Kansai Branch / Shikoku Branch / Chugoku Branch / Kyushu
works inMeidensha’s Branchjurisdiction)2) Acquired OHSAS 18001
Area
Scope
Overseas
SHANGHAI MEIDENSHA CHANGCHENG SWITCHGEAR CO., LTD. /subsidiaries
MEIDEN ZHENGZHOU ELECTRIC CO., LTD. / MEIDEN SINGAPORE
PTE.LTD. / P.T. MEIDEN ENGINEERING INDONESIA / PRIME MEIDENLTD.

As shown above, we have obtained external certification (ISO45001 and OHSAS 18001) for
each domestic region and overseas subsidiaries, and 70% of the Group has obtained
certification on a per-employee basis (as of March 31, 2021).

●Results of Occupational Safety and Health Initiatives

1) Received 2021 Health and Productivity Management Outstanding Organization(White 500) Certification and Selected as a 2021 Health and Productivity Management
Brand
200

Meiden Group Sustainability

Meidensha was certified as part of the Certified Health and Productivity Management
Outstanding Organization Recognition Program that is jointly recognized by the Ministry of
Economy, Trade and Industry (METI) and Nippon Kenko Kaigi, and a 2021 Certified Health andProductivity Management Outstanding Organization in the White 500 list. We have been
selected as a 2021 Health and Productivity Management Brand by METI and the TSE, inrecognition of being an exceptional health and productivity management* listed company. In
receiving Health and Productivity Management Organization (White 500) Certification and being
selected as a 2021 Health and Productivity Management Brand, we received high praise for theestablishment of a structure to promote health management within the Company and our
initiatives targeting bearers of future risk at an early stage with information such as and theresults of health examinations.
*" Health and productivity management " is a registered trademark of the Health Management
Study Group, an NPO.

2) Smart Challenge Meiden Five
Meidensha has determined five health activities that we should engage in. Labelling them the
Smart Challenge Meiden Five, we are rolling out initiatives accordingly.
① Challenge 1: Taking action for passive smoking and promoting the quitting smoking
program
In the Tokyo area and at each production site, branch, and affiliate, we have distributed
and are displaying posters for a program to quit smoking for which consultations can be
conducted online. We have also notified smokers of the program by email, where we
displayed messages from people who successfully quit smoking via digital signage. Of the73 people who participated in the program (62 more than the previous year), 33
successfully quit smoking.
② Challenge 2: Measures to combat lifestyle diseases – under 39
We are taking actions providing the pre-obese under 40s with ICT health guidance
201

Meiden Group Sustainability

programs for weight loss through improvement and establishment of diet and exercise
habits. Results were seen in improved average wellness scores as well as weight loss.
Improvements were seen in presenteeism as well as prevention of lifestyle diseases.
③ Challenge 3: Measures to combat lifestyle diseases – over 40
For people aged 40 and over, we have ideas not only to improve weight and examination
figures, but also for people to feel change and a sense of achievement when it comes tosubjective health measures (wellness and performance). We not only increased
participation, but also achieved results such as weight change and improved wellness.
Results of measures to combat lifestyle-related
UNDER-39
OVER-40
diseasesParticipants
75
149
Program completion rate (%)
92.0
93.2
Quantitative improvements
Weight loss (kg)
-3.2
-1.6
Waist-line shrinkage (cm)
-4.0
-2.0
Behavioral changes
Improved dietary habits (%)
85.5
57.1
Improved exercise habits (%)
55.1
51.0
Subjective wellness changes
Average score at commencement
5.7
6.2
Average score at completion
7.8
6.8
Improvement in subjective wellness (%)
+2.1
+0.6
Presenteeism (first University of Tokyo scale)
Average at commencement
79.5
83.6
Average at completion
80.9
85.5
Presenteeism improvement rate (%)
+1.4
+1.9
*1 Men are allocated a score out of 10 for answering 10 questions relating to wellness. Womenare allocated a score out of 11 because there is one extra question for women, concerning“dealing with period pain or PMS,” which has a great impact on presenteeism.
*2 This is an indicator of absence from work due to feeling unwell. Employees evaluate theirown work in the previous four weeks, with performance when well and uninjured acting as abaseline of 100%.
202

Meiden Group Sustainability

④ Challenge 4: Measures to combat cancer
From FY2021, we are working to maintain an environment conducive to receiving
examinations, such as by providing a comprehensive support system, in order to increase
cancer screenings for women. In light of the difficulty of conducting abdominal X-ray
examinations due to the COVID-19 pandemic, we have given priority to incorporating partof the gastric cancer risk examination (ABC exam) into our periodic health examinations,and we support measures to combat gastric cancer. Medical professionals (physicians or
public health nurses) encouraged 100% of those who require a thorough examination toreceive one and confirmed that they did so. Superior personnel and medical examiners
encouraged entire workplaces to receive examinations.
⑤ Challenge 5: Promoting maintain mental health
We provide our workers with information and loan textbooks for the Mental HealthManagement® exam according to the Mental Health Plans, so that employees can engage
in self-care. 12 employees attempted the exam in FY2020. We surveyed each workplacewith regard to acute mental health care in accordance with the Workplace Mental Health
Checklist.
We adopted the simplified new workplace stress survey (80 items) for our stress checksurvey, which enabled us to properly investigate work engagement.

203

Meiden Group Sustainability

Plan and Targets

Safety and Health Indicators
Occupational Safety and Health Indicators (Meiden Group)
MeidenGroup

Occupational
Accidents (cases)

Occupational
Diseases(cases)

FY2020(targetvalues)Lost Time No Lost
Accidents Time
Accidents
4
0
3
(20%
(30%
reduction reduction
compared comparedto theto theprevious previous
fiscal year) fiscal year)

FY2020380(establishedvalues)
FY20217
20(target(33%(14%values)reduction reduction
compared comparedto theto theprevious previous
fiscal year) fiscal
year)/td>

People with
Traffic
absences due to Accidents
illness of at least (cases)
one month (rate ofabsence)*1
Total
Mental Accident(including
duringmental)work
16 people 16 people 38(0.5%)(0.4%) (10%reduction(10%(10%
reduction reduction compared
compared compared to theto theto theprevious
previous previous fiscal year)
fiscalfiscalyear)
year)
21 people 20 people 32(0.53%) (0.50%)

19 people 18 people 29(0.5%)(0.4%) (10%reduction(5%(10%
reduction reduction compared
compared compared to theto theto theprevious
previous previous fiscal year)
fiscalfiscalyear)
year)*1 Proportion of employees who were absent for a month or more

204

Meiden Group Sustainability

Occupational Safety and Health Data (only Meidensha)
Item
2017※1
2018
2019
2020
Lost time
0.29
0.99
0.60
0.76
accidents
rate*2
Severity rate of 0.00
1.28
0.00
0.00
lost time
accidents*3
Number of0
1
00
fatalities(cases)Number of lost 2
6
1
1
time accidents(cases)*4
Number of no 5
3
3
4
lost time
accidents(cases)*1 Proportion of employees (excluding dispatch workers) who were absent for a month or more
due to illness.
*2 “Frequency rate” indicates the frequency of casualty due to industrial accidents per 1 million
gross hours of actual work.
If the same person was damaged more than once, the number of casualties is calculated as thenumber of accidents.
*3 “Severity rate” indicates the significant degree calculated from days of lost work due toindustrial accidents per thousand gross hours of actual work.
*4 “Accidents accompanied by lost worktime” refers to accidents that require at least one day
off work according to Meidensha’s own calculation standards.

205

Meiden Group Sustainability

Safety Record (only Meidensha)* Minor accidents are not included in thenumber of accidents.
Number of official participants in the Combined Labor and Management Safety and HealthCommittee as labor delegates
Item
FY2019FY2020
Proportion of total workers 1.45%
0.77%(those whose operation or (40 delegates/2,755 people) (26 delegates/3,363 people)
workplace is underorganizational control) that
send delegates to the
Combined Labor andManagement Safety and
Health Committee

206

Meiden Group Sustainability

Health Management Indicators (only Meidensha)
Item
FY2018 FY2019 FY2020
Participants in the program for smokers to 11
108
quit smoking
Participants in Meiden Smart Walking
612
767
Number of Health Web Kencom members
1,502
1,663
1,842
Rate of regular health examinations
100
100
98.3
Rate of thorough examination, second
67
69
63
examination, or treatment (%)*1
Rate of stress checks (%)
91.2
96.1
96.6
Rate of high stress (%)
16.1
15.6
13.4
Rate of consultations with highly-stressed2
4
5
workers (%)*2
Work engagement (*FY2019 survey is for
2.29
2.47
reference purposes) *3
Average rate of utilization of leave
Listed in Smart Work 2024 labor
practice targets
Average hours of overtime
Number of workers exceeding 80 hours of outof hours work (work outside of legally
stipulated hours) per monthRate of smoking (%)
26.7
24.0
21.8
Regular health Obesity (BMI of Male
34.9
35.0
37.0
examination
25 or over)Female
20.9
20.7
20.6
results (rate ofconditions
Total
32.8
32.8
34.6
discovered (%))
Rate of blood pressure risks 0.6
0.5
0.7
*4
Proportion of workers at
0.5
0.4
0.5
risk of diabetes*5
Medical expenses per person (yen)178,000 174,772 137,297
Insurance expenses per person (yen)16,59016,79913,660207

Meiden Group Sustainability

Item
FY2018 FY2019 FY2020
Absenteeism (proportion of workers taking 0.29
0.43
0.50
mental health leave or other leave (%))*6
Loss of absolute presenteeism (first20
17
University of Tokyo scale) (%)*7
Job turnover rate (%)
Listed in labor practices results data >*1 Percentage of people who required thorough examinations or second examinations that
actually received them
*2 Proportion of highly-stressed workers for whom a voluntary interview with a physician was
conducted*3 Indicator of a positive state of mind in relation to work
*4 Proportion of workers with systolic blood pressure of 180 mmHg or more or diastolic bloodpressure of 110 mmHg or more
*5 Proportion of workers with fasting blood sugar of 200 mg/dl or more
*6 Proportion of employees who took sick leave or were absent for a month or more for mental
health reasons*7 Employees evaluate their own work in the previous four weeks, with performance when welland uninjured acting as a baseline of 100%
Initiatives

Priority Items

The Meiden Group promotes its basic occupational safety and health measures from thefollowing eleven perspectives.

1) Promotion of the Safety and Health Management System

We promote risk management and safety and health activities based on our occupationalsafety and health management system, and systematically strengthen our safety and healthmanagement framework.

2) Compliance with Legal Requirements

We manage and evaluate legal requirements and ensure compliance at the three defensive
levels of business unit, site, and company.

3) Improvement of Employees’ Safety and Health AwarenessWe increase employees’ sensitivity to occupational health and safety risks.

4 style="margin-top: 0; padding-top: 0; page-break-before: always;") Promotionof Activities to Prevent Industrial Accidents
208

Meiden Group SustainabilityWe promote preventive activities mainly for accidents with a high risk such as falls, work atheights, and electric accidents, and high-risk attributes such as immature workers and elderly
workers, based on the accident characteristics of our company all over Japan.

5) Promotion of a Healthy Work Environment and Its Appropriate Management

We maintain the three forms of industrial health management (work environment management,
work management, and health management), and prevent occupational disease by improving
work environments.

6) Achieving a Safe Workplace Environment by Implementing and Continuing 5S
Activities
We continue to conduct 5S activities in the belief that they are not merely cosmetic activities,
but rather that they are for the purpose of creating a safe workplace environment that is
conducive to work.

7) Measures to Reduce Traffic Accidents

We prevent and implement measures against traffic accidents and promote activities aimed atpreventing them, particularly with regard to accidents that occur when commuting to and fromwork.

8) Measures to Prevent Traffic Accidents on Premises

We ensure total compliance with all on-site traffic rules and appropriate implementation ofvehicle management regulations. We conduct safety checks when loading and unloading.

9) Comprehensiveness and Revitalization of Safety Activities

We ensure the vitality of daily safety activities, including at factories, worksites, and business
units (sales and SE), and foster improvements in workplace safety and a culture that values
safety.

10) Promotion of Risk Assessment and Continuous Improvements through Risk
Reduction Measures
We identify risks in normal, unusual, and emergency operations and actively reduce risk byformulating improvement plans for high-risk operations.

11) Thorough Safety and Health Education

We conduct and keep a record of education, which is a major pillar of preventing industrial
accidents and health problems.

209

Meiden Group Sustainability

Major Initiatives

1) Safety and Health Initiatives

The Meiden Group has experienced many industrial accidents over its long history.
So far, we have conducted a range of initiatives to prevent industrial accidents such as
conducting KYK (risk anticipation activities), risk assessment, introducing safety patrols, andsafety and health management systems (ISO 45001).

Promoting Safety Experience Education

In 2014, we created the first hands-on safety experience truck, and conducted safety
education for workers such as group employees and contractors that work on site, by taking
the car directly to worksites, in order to promote safety education. As at Meidensha, many
companies are concerned about safety education at worksites, and we are also marketing oursafety education to them.
In November 2019, we created hands-on safety experience truck no. 2 to conduct safety
education for employees, and conducted safety experience education for production sites(Numazu, Ota, Nagoya, and Kofu). Safety experience trucks are fitted with equipment thatallows users to realistically experience industrial accidents on site in a virtual environment.

Opening of the Safety Promotion Center

In January 2020, we opened the Safety Promotion Center tointroduce people to past industrial accidents.
Immediately following an industrial accident, the entire company
comes together and vows never to repeat the same mistake; thisresolve, however, fades as time passes. In particular, if managers
of workplaces where an industrial accident has occurred aretransferred, this increases the rate at which lessons learned fromthe accident fade.
We established the Safety Promotion Center as a place toencourage story-telling and thinking about industrial accidents
that have occurred.
We believe it is whole Meidensha’s duty to discuss and remember
210

Meiden Group Sustainability

the experience of bitter accidents without turning away fromthem.
The Meiden Group promotes initiatives to raise safety awareness and eliminate industrial
accidents through trainings by using a safety-car to experience and by keeping safety
awareness in our mind at the Safety Promotion Center. We discover and mitigate risks that areusually hard to notice by conducting third-party patrols, in addition to patrols by officers andemployees. We communicate the importance of safety by having officers in charge of
production, safety, and quality confirm mitigation of risks for themselves.

Awards for Achievement of No Accidents and No Disasters
The President of the Meiden Group awards business units inwhich there have been no industrial accidents for a specified
period of time, raises awareness of safety at the workplace level
and continuously provides opportunities to promote activities bycelebrating safety initiatives.

Safety and Health Education at ASEAN Subsidiaries

Due to the impact of the COVID-19 pandemic, we were unable to conduct sufficient
occupational safety and health education (including safety experiential education) and quality
management education for local staff and workers at Southeast Asian subsidiaries, which wehave been continuously conducting since FY2014.
Instead, we conducted remote discussions to support overseas subsidiaries by providing
English and Chinese translations of materials and videos required for the education of local
staff. We also supported exchange of information with overseas subsidiaries by conducting
Zoom or other remote meetings.

211

Meiden Group Sustainability

Meidensha’s original On-site Safety and Health Management Standards (General Provisions combined Japanese and English edition)

Occupational Safety and Health Education for Employees through e-Learning
In FY2019, we began occupational safety and health education for all Group employees
through e-learning. By comprehensively organized risk factors for industrial accidents and
impediments to health and repeatedly distributing information, we share knowledge andincrease awareness, which plays a role in preventing accidents.

[Examples of Content]
Overturning accidents
Lower back pain risk
Heat stroke
Lifestyle diseases

212

Meiden Group Sustainability

Risk Evaluations Relating to Safety and Health

The Meiden Group identifies risks in ordinary, extraordinary, and emergency operations at eachsite and business unit as risk-reduction measures at all worksites, including overseas worksites,
and works to lower risk by formulating reform plans for high-risk activities.
In addition, we monitor country risks for overseas businesses based on information from the
Ministry of Foreign Affairs, specialist overseas safety and risk management and international
medical companies, overseas risk media, and local sources, etc., and implement timely andappropriate safety measures (information provision, warnings, travel restrictions, and measures
to prevent serious injuries or illness, etc.).
When promoting new projects, we confirm risks such as local laws, the surrounding
environment, infrastructure, equipment, and substances used (risk assessment, etc.), as
necessary.
The executive committee scrutinizes and makes resolutions regarding risks that have been
identified while promoting a project through a preliminary review system, and conducts
investigations for management decisions relating to matters that may seriously impact theGroup (risk of loss).
Preliminary Risk Assessment

2. Health Promotion Measures

Of the 5 pillars of health management - namely mental health measures, anti-smoking
measures, measures to prevent lifestyle diseases, including for young people, and measures toprevent cancer – we are conducting activities that prioritize health issues that require urgent
measures, which are as follows.
1. Enhancement of mental health promotion systems and promotion of workplaces that do not
result in mental illness
2. Prevention of impairment of health due to smoking
3. Promotion of health examinations, health advice, and prevention support for the prevention
and treatment of health issues
We will roll out initiatives based on successes and points for improvement of Smart Challenge
Meiden 5, which we conducted last fiscal year.
(1) Challenge 1: Taking action against passive smoking and promoting the quitting smoking
program
We are promoting quitting of smoking by gradually reducing smoking areas and permitted
smoking times and continuing to implement our online program to support quitting ofsmoking.
(2) Challenge 2: Measures to combat lifestyle diseases – under 39
We are promoting measures to prevent future onset of lifestyle diseases for young
employees under 40, such as providing a health guidance program using ICT and ensuring
exercise schedules for people inclined to future obesity.

213

Meiden Group Sustainability

(3) Challenge 3: Measures to combat lifestyle diseases – over 40
We continue to provide a health guidance program for those who receive specific healthguidance, using ICT, and we are promoting the creation of a culture where everyone canparticipate in order to further increase participation.
(4) Challenge 4: Measures to combat cancer
We encourage those who require a thorough examination to receive one from a medical
professional and systematically confirmed that they did so. We also improved theenvironment for receiving examinations for women’s cancer, and we will promote improved
examination rates going forward. With regard to measures to combat cancer, including thegastric cancer risk examination (ABC exam) that we commenced last fiscal year, we areworking to conduct publicity and education in order to ensure understanding from as
many personnel as possible.
(5) Challenge 5: Promoting mental healthWith regard to self-care and line care, we conduct support and dissemination of
information for the Mental Health Management® Exam according to mental health plans.
With regard to line care, we not only conduct workplace reforms to prevent psychologicalissues, but we also identify signs that a workplace required an approach based on the
results of group analysis of surveys conducted by check sheets that are even simpler thanstress checks and the causal relationship between attendance data and other factors. We
have established rules and a system to support returning to work, including environmental
adjustments to workplaces, in order to reduce protraction and recurrence of mental
health issues.
(1) Promoting Work Style Reform
For details on activities, refer to the Work Style Reform of Labor Practices(2) Holding a Health Seminar
In June 2021, we invited Tetsuya Ohira, who is a professor of
medicine and Chairman of the Fukushima Medical University
Department of Epidemiology, to present a health seminar. Withthe theme of “laughter,” he gave a hybrid (in-person and online)
lecture about the laughter health method, which increases mental
and physical immunity. 339 employees participated on the day,and 97% of participants indicated “satisfied” on the survey given
to participants afterwards.

214

Meiden Group Sustainability

Health Seminar Satisfaction(3) Health Literacy Survey
We administer a health literacy survey to all employees, for the purpose of determining thelevel of health literacy, which is the ability to search for and utilize information on health andmedicine, of employees, etc. The results of the FY2020 survey indicated that there are issues
relating to utilization and understanding of information about mental health. Based on theseresults, we disseminated information about metal health self-care, and encouraged people toobtain Mental Health Management® exam accreditation, etc.
*”Mental Health Management” is a registered trademark of the Osaka Chamber of Commerceand Industry.
Health Information Utilization and Understanding (health literacy) Survey(4) Collaborative Health and Data Health
We promote activities by organizing a collaborative health committee consist of healthinsurance associations, labor unions, and staff from industrial health and from safety
management. Each plan is deployed and followed utilizing the ISO45001 (Occupational Safety
and Health Management System), and health activities are carried out efficiently. We introduce
a health information management system and analyze issues and effects based on objective
data.
(5) Aiming to Maintain Health and Productivity Management Organization (White 500)
Certification
We aim to maintain our 2021 Health and Productivity Management Organization (White 500)
certification and Health and Productivity Management Brand Selection, and we will actively
engage in measures to promote maintenance and improvement of employees’ health according
to social issues and needs.
215

Meiden Group Sustainability

Home Sustainability

SocialCommunity

SocialCommunity
PolicyPolicy on Local Employment and Procurement

The Meiden Group gains awareness of issues and forms positive relationships with communities
through lively two-way communication in countries and regions in which we conduct business.
Furthermore, the Meiden Group is aware of the importance of local hiring and local
procurement to contribute to sustainable development in these countries and regions.
The Meiden Group is working to contribute to the economic development of countries andregions in which we conduct business through a range of initiatives.

Social Contribution Policies

Meiden Group Social Contribution Policies
1. We shall contribute to the sustainable development of society through our main
business of manufacturer and supplier of electromechanical products.
2. We appreciate the local communities that support our business activities and we shall
execute social contribution that helps the progress of community development.
3. The Group’s executive officers and employees shall voluntarily support our social
contribution initiatives.

We are working to conduct positive communication with people in the local community and our
stakeholders that support us on a day-to-day basis, through contributions to society according
to the Meiden Group Social Contribution Policies.
In 1918, Take Shigemune, the second President of the Company and wife of the Founder, Hosui
Shigemune, used her own funds to establish Hosui Elementary School in Osaki (Shinagawa City,
Tokyo), an area where the Company had a factory. Following in her footsteps, the Meiden
Group will make a wide variety of social contributions through our active involvement with local
communities and with society.

The Meiden Group’s Aims: Solving Social Issues Through Our Business

The Meiden Group aims to be a company that accepts the challenge of solving social issues by
providing new value created through its business activities, in order to accept the challenge ofcreating a new society through a sincere attitude towards the earth, society, and humanity andjoint development capabilities. Solving social issues through our core business leads to growth,and this aligns with the Meiden Group Social Contribution Policy. In terms of our social
216

Meiden Group Sustainability

contribution activities, by conducting social contribution activities that are suited to the Meiden
Group, with features that leverage the skills and knowledge of employees, such as
manufacturing classes and visiting science lectures that leverage the technology and products
developed through our business, we contribute to the solution of social issues, such as lack ofengineers and STEM personnel due to children drifting away from science, and thedevelopment of local communities. We believe that these activities will eventually lead to thebuilding of a relationship of trust with our stakeholders, which in the long run will lead to theenhancement of corporate value and the securing of excellent human resources.

Policies to Support Local Communities

Conducting Social Contribution Activities that Contribute to the Development of Local
Communities

The Meiden Group conducts business activities in various countries and regions and is
supported by hiring workers from surrounding areas and building positive relationships. Basedon Meiden Group Social Contribution Policy 2. “we appreciate the local communities that
support our business activities and we shall execute social contribution that helps the progressof community development,” we conduct internships (job experience), support for education,
volunteer activities, and environmental activities, etc. In Japan, each year, we actively conduct
internships (job experience) for university, vocational college, and high school students, andprovide career-path support and opportunities to deepen understanding of work and society.
The Meiden Group will continue to engage in a range of social contribution activities andcontribute to the development of local communities.
Results Data

CSR expenditure
FY2017FY2018FY2019CSR Expenditure (yen)28,000,000 38,000,000 60,000,000* CSR expenditure includes donations and sponsorship costs.

FY202035,000,000

Initiatives

Contributions to Local Economies

Commencement of Comprehensive Water Supply Operation in Eastern Gunma
Prefecture

In order to tackle a range of issues arising from aging water service personnel employed by
local governments such as labor shortages, passing on of skills, and risk management, theMeiden Group not only designs and manufactures electrical equipment, but offers a one-stop
217

Meiden Group Sustainability

service that includes maintenance services, and management of the operation of facilities. In
April 2017, a private sector group, for which Meidensha is the representative company,
established East Gunma Water Supply Service Co., Ltd. along with the East Gunma Water
Supply Industry Association through joint financing, and commenced water supply operations
and comprehensive projects including extension works in three cities and five towns in the East
Gunma region. Through this venture, we were able to achieve efficient business administrationand transmission of skills to personnel, achieve public benefit, create new employment
opportunities, and reduce maintenance costs, by leveraging the skills and knowhow of private
enterprise.

Community Investment

In Support of Local Community and Government Initiatives: Donation of Facilities to
Schools in Thailand

In the Kingdom of Thailand, we donated facilities for two schools in the mountainous regions of
the north of Thailand, which are populated by ethnic minorities, in fiscal 2017, to celebrate
Meidensha’s 120th anniversary and the 50th anniversary of THAI MEIDENSHA CO., LTD. We
donated a library and a water tank to Kalayaniwattana Secondary School, which was one ofthose schools. As these regions are surrounded by mountains, it takes a long time to travel toschool and many students choose to live in dormitories. With this water tank to store the waterthat is necessary for life and this library to help students learn, Meidensha was able to support
children’s rights and business principles, improve the learning environment for children inaccordance with these principles, and contribute to the provision of opportunities for children
to receive reliable and high-quality education. Employees of THAI MEIDENSHA CO., LTD. visit
the two schools to which facilities were donated on an ongoing basis, and maintain connections
with learning activities, teachers, and the local community through activities with students.

218

Meiden Group Sustainability

Social Contribution Activities (Examples and Results of FY2020
initiatives)

Meidensha Manufacturing Classes: Teaching children about the Joy of Manufacturing

Since fiscal 2007, which was our 110th anniversary, we have held
Meidensha Manufacturing Classes at elementary schools locatednearby each of our sites, including Hosui Elementary School.
Through these Manufacturing Classes, we will enable children toexperience the joy of manufacturing by having them assemble
and operate toys that incorporate motors by themselves. Morethan 10,000 children have participated the activity so far. Since
fiscal 2018, we have held Manufacturing Classes at Iwakuni
Elementary School, which was attended by our founder,
Shigemune Hosui.
In fiscal 2020, we held classes at Iwakuni Elementary School in
Iwakuni City, Yamaguchi Prefecture, and Hosui Elementary Schoolin Shinagawa, Tokyo, with 26 Meiden Group employees and 193
children participating.

Visiting Science Lectures for Junior High Schools Nearby Meidensha Sites

Since fiscal 2017 we have held visiting lectures entitled “Howdoes electricity reach us?” for second-year junior high school
students in the areas around our sites, through which children
can learn about the importance of electricity through experience.
In fiscal 2020, we conducted visiting science lectures for 103
second-year students at Ota Junior High School in Ota City,
Gunma Prefecture. Lecturers and assistants comprised 12
Meiden Group employees.

Observation at the New Skills Training Center, Manabi-ya, by local technical high school
students

In June 2021, the new skills training center, Manabi-ya, located at Numazu Works, hosted an
observation by 39 technical high school students who study electronics and robotics. This
scheme was designed to provide the hands-on safety experiences to students from local
technical high schools. The students successively visited the Manabi-ya Digital Zone, thepractical training area, and the study area.
Going forward, we hope to hold more observations for local schools and contribute to thelearning of even more students through Manabi-ya.

219

Meiden Group Sustainability

Environmental Beautification Activities at Sites around JapanThe Meiden Group engages in environmental beautification activities such as cleaning up litter
and weeding at sites around Japan on a day-to-day basis, in order to coexist with local
communities. Local residents value the contributions we have made over many years, and thesebeautification activities also contribute to a sense of social contribution and foster a sense ofcommunity amongst employees.

Donation of Garbage Cages to Numazu City

Meidensha, MEIDEN SYSTEM MANUFACTURING CORPORATION,MEIDEN KOHSAN CO.,LTD., and MEIDEN UNIVERSAL SERVICE
LTD. jointly donated 10 garbage cages to Numazu City, which has
residents who complain of damage caused by crows at garbage
collection areas. The donated garbage cages have been
distributed to local residents’ associations through the Numazu
Federation of Residents’ Associations, and are being used byresidents.

Donation of Ozone Water Treatment Spray to Municipalities

For the purpose of helping to prevent COVID-19 infection, each of Meidensha Works in Tokyo,
Numazu, Ota, and Nagoya donated ozonized water generation spray and purified water for
special use to Shinagawa in Tokyo, Numazu City in Shizuoka, Ota City in Gunma, and Kiyosu Cityin Aichi, respectively. Ozonized water generation spray has the function of converting water
into ozone water, that is said to be highly effective in inactivating viruses and bacteria.

Events to Experience Nature

MEIDEN SYSTEM MANUFACTURING CORPORATION holds events to experience nature forchildren in Numazu City. Meiden System Manufacturing has been conducting this initiative
since 2016, in order to demonstrate the health of the water and soil, etc., near its plant.
In FY2020, an event was held at the fifth Elementary School in Numazu City. It provided an
opportunity to introduce Meiden System Manufacturing’s products and environmental
conservation activities, come into contact with rhinoceros beetles and stag beetles, and learn
about the importance of nature.

220

Meiden Group Sustainability

Meidensha Fureai (Interaction) Music Class

Meidensha’s Chubu Branch Office invited the Nagoya
Philharmonic Orchestra to hold a “Fureai (Interaction) MusicClass” for all school children at Misono Elementary School in
Nagoya City. The Children listened to a performance by a wind
quintet and experienced the beautiful tone of live instruments.
This was a great opportunity for them to discover the joy ofmusic.

221

Meiden Group Sustainability

Home Sustainability

Evaluations from External Bodies

Sustainability

Evaluations from External Bodies
Status of incorporation of the ESG Index* (as of July 2021)* ESG is an abbreviation of “environment,” “social,” and “governance.” Consideration is given toenvironmental and social factors, which are important elements to determine whether to makean investment, in addition to financial factors.

S&P/JPX Carbon Efficient Index

The S&P/JPX Carbon Efficient Index is an environmental index that was developed by S&P Dow
Jones Indices LLC. It gives weight to companies with high carbon efficiency and that fully
disclose carbon emissions. The S&P/JPX Carbon Efficient Index also serves as an ESG index forJapanese companies that are GPIF investment targets. Meidensha was added to the index in2018.

Sompo Sustainability Index

Meidensha has been selected for the Sompo Sustainability Index, which was instituted by
Sompo Asset Management Co., Ltd. in August 2012.
Sompo Sustainable Investment is a responsible investment product for pension funds andinstitutional investors that invests broadly in companies with a high ESG (environment/social/governance) rating. Each year, revision of companies listed in the index is conducted based on
the results of a survey conducted by Sompo Risk Management Inc. Meidensha’s ESG initiatives
have been highly rated by investigation, leading us to be continuously selected by index since
fiscal 2016.

222

Meiden Group Sustainability

FTSE Blossom Japan Index

The FTSE Blossom Japan Index is designed to measure the performance of companies thathave taken exceptional action on environmental, social and governance issues, and is selected
by FTSE Russell, a global developer and manager of equity bond and other indices. The index
consists of stocks that meet various evaluation criteria related to the environment, society, andgovernance. These criteria are used to select investments by investors who place importanceon corporate social responsibility and sustainability, and are reviewed based on the results ofannual evaluations. Meidensha was selected as a constituent stock for the first time in fiscal
2020.

Other Major Evaluations from Outside the Company
CDP (Climate Change and Water Security)

CDP is an international NGO that operates a global information disclosure system to manage
the environmental impact of investors, companies, cities, countries, and regions. It investigates,
evaluates, and discloses information about environmental initiatives on behalf of institutional
investors. In 2020, Meidensha was rated as B in climate change and B in water security by CDP.

223

Meiden Group Sustainability

MSCI ESG Ratings

The MSCI ESG Ratings is an ESG rating by MSCI in the United States. MSCI analyzes acompanys’ ability to manage ESG risk and evaluates it on a seven-point scale from AAA to
CCC. In 2021, Meidensha received a rating of A in the MSCI ESG Ratings.

Science Based Targets Initiative (SBTi)

In 2021, Meidensha upwardly revised its 2030 greenhouse gas emissions reduction target. Thistarget received SBT certification as it was recognized by the Science Based Targets (SBT)
initiative as being consistent with the Paris Agreement.

2021 CSR Company Ranking (Toyo Keizai Inc.)

Released by Toyo Keizai Inc., the CSR Company Ranking generally evaluates and ranks CSR(corporate social responsibility) and Finance by evaluating utilization of human resources,
environment, corporate governance, social responsibility, profitability, safety, and scale, basedon responses to an annual survey given to companies. Meidensha was ranked 50th out of 124
companies in the electrical machinery industry in the 15th CSR Company Ranking (in 2021).

The 4th Nikkei Smart Work Management Survey

The Smart Work Management Survey, conducted by Nikkei Inc. from 2017, selects leading
companies who are challenging the productivity revolution through work style reform. The
survey was conducted on listed companies nationwide and leading unlisted companies, andconsists of three elements: the realization of diverse and flexible working systems, a system fornew businesses, and the ability to develop markets. They define efforts to maximizeorganizational performance as "smart work management" and evaluate them in five stages,
taking into account management foundations such as corporate governance. In the 3rd survey,
Meidensha was recognized as one of the 2.5-stars company.

224

Meiden Group Sustainability

The 2nd Nikkei SDGs Management Survey

The SDGs Management Survey comprises questions relating to the four categories of “SDGs
strategy and economic value,” “social value,” “environmental value,” and “governance.” In the
2nd survey, Meidensha was rated as a company with 3.5 stars.

Eruboshi

In 2017, Meidensha received the highest level of Eruboshi mark (grade 3).
Eruboshi is a system under which certification is granted by the Minister of Health, Labour andWelfare to companies that have formulated and submitted action plans under the Act for the
Promotion of Women’s Participation in Working Life (Act for the Promotion of Women’sParticipation), that meet certain standards, and that have been exceptional in theirimplementation of initiatives. There are three levels of certification, and Meidensha has received
grade 3, which is the highest level as it is recognized as having met the required standards in all
five evaluation categories. Receiving Eruboshi certification also increases our rating forcomprehensive evaluation bidding systems, etc., of public enterprise.

Action plan under the Act for the Promotion of Women’s Participation andPromotion of Diversity Management

Kurumin and Platinum Kurumin

In 2021, Meidensha was granted Kurumin and Platinum Kurumin certification by the Minister of
Health, Labour and Welfare (MHLW). The Kurumin certification is a system in which the Ministerof MHLW certifies companies that have formulated the Plan of Action for General Employers
based on the Act to Advance Measures to Support Next-Generation Child-Rearing and that
225

Meiden Group Sustainabilitymeet certain standards, such as achieving the goals set in the action plan, as companies that
support child-rearing. Platinum Kurumin certification is a special certification system forcompanies that have been certified as Kurumin certification and have made efforts at a higher
level to become exceptional child-rearing support companies.

Health and Productivity Management Organization (White 500)

Meidensha has been certified as a "Health and Productivity Management Organization - White
500" by the Ministry of Economy, Trade and Industry (METI) for its excellent healthmanagement practices. The "Health and Productivity Management Organization - White 500" isa joint effort by METI and Nippon Kenko Kaigi (Japan Health Council) to recognize large
corporations, not limited to listed companies, that practice good health management incooperation with insurers. Meidensha was certified for the first time in 2021.

Health and Productivity Management Brand

Meidensha has been selected as the Health and Productivity Management Brand by the
Ministry of Economy, Trade and Industry (METI) and the Tokyo Stock Exchange (TSE) for listedcompanies with excellent health and productivity management. The "Health and Productivity
Management Brand" has been announced by METI and TSE since 2015 as a company thatstrategically and actively practices Health and Productivity Management from a management
perspective, considering employee health management. Meidensha was first selected in 2021.

226

Meiden Group Sustainability

2019 Environmental Human Resource Development Corporate Awards

The Environmental Human Resource Development Corporate Awards are given to companies
with management that is considerate of the environment. The awards recognize initiatives todevelop employees able to act independently, with the results of said initiatives aimed atincreasing the number of companies that contribute to overall improvement of theenvironment, society, and the economy. Meidensha was awarded an Incentive Prize, and waspraised for the activities of the entire Meiden Group and its efforts to increase the reach of its
environmental management system, including suppliers.

FY2020 MEXT Commendation for Science and Technology: Prize for Scienceand Technology (Development Category)

The MEXT, Minister of Education, Culture, Sports, Science and Technology, Commendation in
the science and technology category recognizes those who have achieved outstanding results
in research and development or promotion of understanding in relation to science andtechnology. Meidensha received the Prize for Science and Technology (Development Category)at the 2020 MEXT Commendation for Science and Technology for development of catenary
inspection equipment that operates by image analysis.

BCAO Awards 2019: Superior Practice Award in the Business Continuity
Division

The BCAO Awards are administered by the Business Continuity Advancement Organization(BCAO) to recognize individuals or groups that have contributed to the spread andimplementation of business continuity, in order to promote the proliferation of business
continuity in Japan. Meidensha received the Superior Practice Award in the Business Continuity
Division and was praised for its development of business continuity plans (BCP) for all business
units in 2018, as well as its system of business continuity management (BCM).

227

Meiden Group Sustainability

September 29, 2020: Remote award ceremony

FY2020 Japan Quality Recognition Awards: TQM Recognition Award

The Japan Quality Recognition Awards is an award system that was founded in 2000 for the
purpose of creating companies that are able to overcome intense international competition by
conducting exceptional total quality management (TQM). It comprises the TQM Recognition
Award and the Quality Innovation Award. At the fiscal 2020 Japan Quality Recognition Awards,
Meidensha received the TQM Recognition Award for TQM initiatives at the Plant Construction
and Engineering Business Group.

At the award ceremony on November 11, 2020 (front row, third from the right: Norio
Takekawa, the Director and Senior Managing Executive Officer of Meidensha)

Third EcoPro Awards: Encouragement Prize

The EcoPro Awards is an award system that recognizes products, services, technologies,
solution, and business models that are highly evaluated by businesses, consumers, investors,
and market participants in the Japanese market and that specifically incorporate outstanding
environmental considerations, with an eye to changes in social and economic circumstancessuch as economic globalization, the entry into force of the Paris Agreement, and theestablishment of the SDGs. Meidensha received the Encouragement Prize at the 3rd EcoPro
Awards for its initiatives to reduce greenhouse gas emissions in the value chain throughbusiness related to renewable energy and electric vehicles.

228

Meiden Group Sustainability

The 69th Nikkei Advertising Awards: Excellence Prize in Electrical,
Communications and IT Category

Meidensha has been awarded the Excellence Prize in the electrical, communications and IT
category of the 69th Nikkei Advertising Awards sponsored by Nikkei Inc. The winning entry is
the June 2020 edition of "Electricity: Taking action," which was published in the Nihon Keizai
Shimbun on June 19, 2020. This is a series of advertisements, which has been awarded in thesame category for three years in a row, following 2018 and 2019.

June 2020 edition

November 2020 edition

January 2021 edition

The 8th (FY2020) GKP PR Awards: Grand Prize

Meidensha won the grand prize at the eighth GKP PR Awards granted by the Gesuido Koho
Platform (GKP). The GKP PR Awards is an award system to discover and award examples of
exceptional PR activities that increase the value of sewerage infrastructure in order to publicize
them throughout the sewerage industry. The award-winning project is the “Guess Ii! Project”(project on future disaster preparedness from the perspective of the sewerage system) jointly
conducted by Meidensha, Toa Grout Kogyo Co., Ltd, and the Asahi Shimbun in fiscal 2019.

229

Meiden Group Sustainability

High school students who participated in visiting lectures and companies that participated in
the project230

Meiden Group Sustainability

Home Sustainability

Editorial Policy

Sustainability

Editorial Policy
Editorial Policy

The Meiden Group informs its stakeholders of its attitude and initiatives relating to social
responsibility through the two media, which are Meidensha Report (print edition and web
edition) and the Meiden Group’s Sustainability (web edition).
The content of this website is determined after reporting to and consultation with the Board of
Directors. With regard to the content of the reports, we work to collect, analyze, and distributeinformation that meets our stakeholders’ expectations and is of interest to our stakeholders
through daily public relations and IR activities, interviews with each department.
Furthermore, the Meiden Group is conducting internal communication activities as part of theprocess of drafting reports in order to understand changes in the external environment andshare future issues and trends. In addition, we work to strategically promote future ESG
management by exchanging opinions based on the reports that have been created, and having
each department reflect on its own activities, taking into account outside perspectives.

Report Media

1 Meidensha Report print edition and web edition

A comprehensive collection of financial information concerning the Meiden Group andnonfinancial information such as initiatives that contribute to improving corporate value andmanagement strategies.

1. Booklet, PDF
Meidensha Report

231

Meiden Group Sustainability

2 Meiden Group’s Sustainability Web Edition (this website)

A summarized introduction focusing on specific initiatives to tackle CSR issues that we
consider important.

2. Web edition

Reporting Period

This report mainly covers initiatives taken in fiscal 2020 (April 1, 2020 - March 31, 2021)
It also includes some information from prior to fiscal 2019 and until July 2021.

Subject Organization

The report mainly covers initiatives of Meidensha Corporation and its affiliated companies.
Human resources data applies to affiliated companies in Japan, while environmental reporting
data applies to Meidensha and its 40 major affiliated companies (21 in Japan and 19 overseas).

Publication

Publication of this report: September 2021
Next scheduled publication: August 2022

Guidelines Used as References

International Integrated Reporting Council (IIRC) “The International Integrated Reporting
Framework”
Ministry of Economy, Trade and Industry “Guidance for Collaborative Value Creation”
GRI “Sustainability Reporting Standards”* Although this report is based on the reporting principles, the content does not necessarily
conform to them.
Ministry of the Environment “Environmental Reporting Guidelines (Fiscal Year 2018 Version)”
232

Meiden Group Sustainability

Inquiries about This Report

Meidensha Corporation
Public & Investor Relations Section, Corporate Communication Promotion Division
ThinkPark Tower, 2-1-1, Osaki, Shinagawa-ku, Tokyo
141-6029 Japan
TEL: 81-3-6420-8100

Disclaimer

In addition to past and current facts about the Meiden Group, this report contains forecasts forthe future based on plans, outlooks and business policies and strategies in effect at the time of
publication. These forecasts are our assumptions and judgments as based on information
available at the time they were stated, and may differ from actual business activity results andevents in future owing to changes in conditions.

233

Meiden Group Sustainability

Home Sustainability

GRI Standards Content Index

GRI Standards Content Index
General Disclosures

Disclosure Title
References
GRI102：General Disclosures
Organizational profile
102-1 Name of the organization
Company Profile
102-2 Activities, brands, products, and services Products & Services
102-3 Location of headquarters
Company Profile
102-4 Location of operations
Company Profile
102-5 Ownership and legal form
Company Profile
102-6 Markets served
Products & Services
102-7 Scale of the organization
Company Profile
102-8 Information on employees and other
Labor Practices＞HR Data
workers102-9 Supply chain
Supply Chain Management
102- Significant changes to the organization Not applicable
10and its supply chain
102- Precautionary Principle or approach
Risk Management
11
Corresponding to COVID-19
Infection
102- The Meiden Group’s ESG Management＞ CSR from the Meiden Group12
External Support Initiatives
Perspective ＞External Support
Initiatives
102- The Meiden Group’s ESG Management＞ CSR from the Meiden Group
13
Group Membership Credentials
Perspective ＞Group
Membership Credentials
Strategy102- Statement from senior decision-maker
The President’s Commitment
14
234

Meiden Group Sustainability

10215Key impacts, risks, and opportunities

Ethics and integrity
102- Values, principles, standards, and norms
16of behavior
102- Mechanisms for advice and concerns
17
about ethics
Governance102- Governance structure18102- Delegating authority
19102- Executive-level responsibility for20
economic, environmental, and social
topics

10221
10222
10223
10224
10225
10226

Consulting stakeholders on economic,
environmental, and social topics
Composition of the highest governancebody and its committees
Chair of the highest governance body
Nominating and selecting the highest
governance body
Conflicts of interest
Role of highest governance body insetting purpose, values, and strategy
235

The President’s Commitment
Medium-term Management Plan
Corporate Philosophy
ComplianceCorporate GovernanceCorporate Governance
The Meiden Group’s ESG
Management
Environmental Management
Disclosure based on TCFD
Recommendations
Product Responsibility
Occupational Safety and Health
Risk Management－
Corporate Governance
Board of Directors & Executive
Officers－－
Environmental Management
Meiden Group Sustainability

1022710228
10229

Climate Change
Corporate GovernanceCollective knowledge of highest
The Approach to SDGs
governance body
Corporate GovernanceEvaluating the highest governance body’s Environmental Management
performance
Climate Change
Corporate Governance
Identifying and managing economic,
The Approach to SDGs
environmental, and social impacts
Environmental Management
Climate Change
Risk Management
Risk Management

10230
10231
10232
10233
10234
10235
10236
10237
10238

Effectiveness of risk management
processes
Review of economic, environmental, and －social topics
Highest governance body’s role in－sustainability reporting
Communicating critical concerns
Compliance

102-

Percentage increase in annual total

Nature and total number of criticalconcerns
Remuneration policies－

Process for determining remuneration

Corporate Governance

Stakeholders’ involvement inremuneration
Annual total compensation ratio－

Corporate GovernanceReason foromission:Confidentiality
constraints
Reason for
236

Meiden Group Sustainability

39

compensation ratioomission:Confidentiality
constraints

Stakeholder engagement
102- List of stakeholder groups
40

The Meiden Group’s ESG
Management＞Relationships
with Stakeholders
Environmental Communication
Labor Practices

10241
10242

Collective bargaining agreements

10243

Approach to stakeholder engagement10244

Key topics and concerns raised

Identifying and selecting stakeholders

Reporting practice102- Entities included in the consolidated
45
financial statements
102- Defining report content and topic
46
Boundaries
102- List of material topics
47
102- Restatements of information
48
102- Changes in reporting49
102- Reporting period
50
102- Date of most recent report

The Meiden Group’s ESG
Management＞Relationships
with Stakeholders
The Meiden Group’s ESG
Management＞Relationships
with Stakeholders
Corporate Governance＞
Dialogues with Shareholders
and Investors
The Meiden Group’s ESG
Management＞Relationships
with Stakeholders－
Editorial Policy
The Meiden Group’s ESG
Management
Not applicableNot applicable
Editorial Policy
Editorial Policy

237

Meiden Group Sustainability

51
10252
10253
10254

10255
10256

Reporting cycle

Editorial Policy

Contact point for questions regarding the Editorial Policy
reportClaims of reporting in accordance with
Editorial Policy
the GRI Standards* Although based on thereporting principle, this reporting
is not prepared following thecore option of the GRI
Sustainability ReportingStandards.
GRI content index
GRI Standards Content Index
External assurance

Third-Party Verification

Topic-specific Disclosures
Disclosure Title
Material Topics
200 series (Economic topics)
GRI 201: Economic Performance 2016
103-1 Explanation of the material topic and its
Boundary

References

The Meiden Group’s ESG
Management
Promotion of Strategic ESG
Management
Environmental Management103-2 The management approach and its
components
103-3 Evaluation of the management approach －201-1 Direct economic value generated andPolicies to Support Local
distributed
Communities
201-2 Financial implications and other risks and238

Company Profile
Environmental Management
Meiden Group Sustainability

opportunities due to climate change

Disclosure based on TCFD
Recommendations－

201-3 Defined benefit plan obligations andother retirement plans
201-4 Financial assistance received from
Not applicablegovernment
GRI 202: Market Presence 2016
103-1 Explanation of the material topic and its Community
Boundary103-2 The management approach and its
Community
components
103-3 Evaluation of the management approach －202-1 Ratios of standard entry level wage by －gender compared to local minimum wage
202-2 Proportion of senior management hired －from the local community
GRI 203: Indirect Economic Impacts 2016
103-1 Explanation of the material topic and its Community
Boundary103-2 The management approach and its
Community
components
103-3 Evaluation of the management approach －203-1 Infrastructure investments and services Community
supported
203-2 Significant indirect economic impacts
Community
GRI 204: Procurement Practices 2016
103-1 Explanation of the material topic and its Supply Chain Management
Boundary103-2 The management approach and its
Supply Chain Management
components
Compliance103-3 Evaluation of the management approach Promotion of Strategic ESG
Management
239

Meiden Group Sustainability

204-1 Proportion of spending on local suppliers －GRI 205: Anti-corruption 2016
103-1 Explanation of the material topic and its Corporate Code of Conduct
Boundary
Compliance
The Meiden Group’s ESG
Management103-2 The management approach and its
Corporate Code of Conductcomponents
Compliance103-3 Evaluation of the management approach －205-1 Operations assessed for risks related to －corruption
205-2 Communication and training about anti- Compliancecorruption policies and procedures
205-3 Confirmed incidents of corruption and Not applicableactions taken
GRI 206: Anti-competitive Behavior 2016
103-1 Explanation of the material topic and its Corporate Code of Conduct
Boundary
Compliance
The Meiden Group’s ESG
Management103-2 The management approach and its
Corporate Code of Conductcomponents
Compliance103-3 Evaluation of the management approach －206-1 Legal actions for anti-competitive
Not applicablebehavior, anti-trust, and monopoly
practices
GRI 207：Tax 2019103-1 Explanation of the material topic and its －Boundary103-2 The management approach and its
Compliance＞Tax
240

Meiden Group Sustainability

components
103-3 Evaluation of the management approach
207-1 Approach to tax
207-2 Tax governance, control, and risk
management
207-3 Stakeholder engagement andmanagement of concerns related to tax
207-4 Country-by-country reporting
300 series (Environmental topics)
GRI 301: Materials 2016
103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components
103-3 Evaluation of the management approach301-1 Materials used by weight or volume301-2 Recycled input materials used
301-3 Reclaimed products and their packaging
materials
GRI 302: Energy 2016
103-1 Explanation of the material topic and its
Boundary－
Compliance＞Tax
－
－
－

－

－
－
－
－
Promotion of Strategic ESG
Management
Climate Change
Promotion of Strategic ESG
Management103-2 The management approach and its
components

103-3 Evaluation of the management approach302-1 Energy consumption within theorganization
241

Environmental Management
Climate Change
Promotion of Strategic ESG
Management
Climate Change

Meiden Group Sustainability

Overview of Environmental
Impacts by Our Business
Activities

302-2 Energy consumption outside of theorganization
302-3 Energy intensity
302-4 Reduction of energy consumption
302-5 Reductions in energy requirements ofproducts and services
GRI 303: Water and Effluents 2018
103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components
103-3 Evaluation of the management approach303-1 Interactions with water as a sharedresource

303-2 Management of water discharge-related
impacts
303-3 Water withdrawal
242

Environmental Impact Data
(Fiscal 2018) from the Four
Main Manufacturing Sites(Domestic Manufacturing Sites)－
Climate Change
Climate Change
Product Initiatives (Examples of
Meiden Green Productregistered in FY2020)－
Promotion of Strategic ESG
Management
Environmental Management
Promotion of Strategic ESG
Management
Water Resources
Water Resources
Overview of Environmental
Impacts by Our Business
Activities
Environmental Impact Data
(FY2020) from the Four Main
Manufacturing Sites (Domestic
Manufacturing Sites)
Water Resources
Water Resources
Meiden Group Sustainability303-4 Water discharge

303-5 Water consumption
GRI 304: Biodiversity 2016
103-1 Explanation of the material topic and its
Boundary

304-1
304-2
304-3

Promotion of Strategic ESG
Management
Biodiversity
Promotion of Strategic ESG
Management103-2 The management approach and its
components

103-3

Overview of Environmental
Impacts by Our Business
Activities
Environmental Impact Data
(FY2020) from the Four Main
Manufacturing Sites (Domestic
Manufacturing Sites)
Water Resources
Overview of Environmental
Impacts by Our Business
Activities
Environmental Impact Data
(FY2020) from the Four Main
Manufacturing Sites (Domestic
Manufacturing Sites)－

Environmental Management
Biodiversity
Evaluation of the management approach Promotion of Strategic ESG
Management
Operational sites owned, leased, managed Biodiversity
in, or adjacent to, protected areas andareas of high biodiversity value outside
protected areas
Significant impacts of activities, products, Biodiversity
and services on biodiversity
Habitats protected or restored
Biodiversity
243

Meiden Group Sustainability

304-4 IUCN Red List species and national
conservation list species with habitats inareas affected by operations
GRI 305: Emissions 2016
103-1 Explanation of the material topic and its
Boundary

Biodiversity

Promotion of Strategic ESG
Management
Climate Change
Disclosure based on TCFD
recommendations
Promotion of Strategic ESG
Management103-2 The management approach and its
components

103-3 Evaluation of the management approach305-1 Direct (Scope 1) GHG emissions

Environmental Management
Climate Change
Disclosure based on TCFD
recommendations
Promotion of Strategic ESG
Management
Climate Change
Disclosure based on TCFD
recommendations
Overview of Environmental
Impacts by Our Business
Activities

Environmental Impact Data
(FY2020) from the Four Main
Manufacturing Sites (Domestic
Manufacturing Sites)
305-2 Energy indirect (Scope 2) GHG emissions Climate Change
Disclosure based on TCFD
recommendations
Overview of Environmental
Impacts by Our Business
Activities
244

Meiden Group Sustainability305-3
305-4
305-5
305-6
305-7

Environmental Impact Data
(FY2020) from the Four Main
Manufacturing Sites (Domestic
Manufacturing Sites)
Other indirect (Scope 3) GHG emissions Climate Change
Disclosure based on TCFD
recommendations
GHG emissions intensity
Climate Change
Reduction of GHG emissions
Climate Change
Emissions of ozone-depleting substances Climate Change(ODS)
Nitrogen oxides (NOX), sulfur oxides
Prevention of Pollution and(SOX), and other significant air emissions Effective Utilization of
Resources
Overview of Environmental
Impacts by Our Business
Activities

GRI 306: Waste 2020
103-1 Explanation of the material topic and its
Boundary

Environmental Impact Data
(FY2020) from the Four Main
Manufacturing Sites (Domestic
Manufacturing Sites)
Promotion of Strategic ESG
Management
Biodiversity
Promotion of Strategic ESG
Management103-2 The management approach and its
components

103-3 Evaluation of the management approach

245

Environmental Management
Prevention of Pollution andEffective Utilization of
Resources
Promotion of Strategic ESG
Management
Meiden Group Sustainability

306-1 Water discharge by quality anddestination

Prevention of Pollution andEffective Utilization of
Resources
Overview of Environmental
Impacts by Our Business
Activities
Environmental Impact Data
(FY2020) from the Four Main
Manufacturing Sites (Domestic
Manufacturing Sites)
Prevention of Pollution andEffective Utilization of
Resources
Prevention of Pollution andEffective Utilization of
Resources306-2 Waste by type and disposal method306-3 Significant spills

Overview of Environmental
Impacts by Our Business
Activities
Environmental Impact Data
(FY2020) from the Four Main
Manufacturing Sites (Domestic
Manufacturing Sites)
Prevention of Pollution andEffective Utilization of
Resources306-4 Transport of hazardous waste

Overview of Environmental
Impacts by Our Business
Activities
Environmental Impact Data
(FY2020) from the Four Main
Manufacturing Sites (Domestic
Manufacturing Sites)
Prevention of Pollution andEffective Utilization of
Resources306-5 Water bodies affected by water
discharges and/or runoff

246

Meiden Group Sustainability

Overview of Environmental
Impacts by Our Business
Activities
Environmental Impact Data
(FY2020) from the Four Main
Manufacturing Sites (Domestic
Manufacturing Sites)
GRI 307: Environmental Compliance 2016
103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components

Promotion of Strategic ESG
Management
Promotion of Strategic ESG
Management

Environmental Management103-3 Evaluation of the management approach Environmental Management307-1 Non-compliance with environmental laws Not applicableand regulations
GRI 308: Supplier Environmental Assessment 2016
103-1 Explanation of the material topic and its Supply Chain Management
Boundary103-2 The management approach and its
Supply Chain Management
components
103-3 Evaluation of the management approach Supply Chain Management308-1 New suppliers that were screened using Supply Chain Management
environmental criteria308-2 Negative environmental impacts in the
Climate Change
supply chain and actions taken
Supply Chain Management
400 series (Social topics)
GRI 401: Employment 2016
103-1 Explanation of the material topic and its Labor Practices
Boundary103-2 The management approach and its
Labor Practices
components
103-3 Evaluation of the management approach Labor Practices
247

Meiden Group Sustainability401-1 New employee hires and employee
Labor Practices
turnover401-2 Benefits provided to full-time employees Labor Practices
that are not provided to temporary or
part-time employees
401-3 Parental leave
Labor Practices
GRI 402: Labor/Management Relations 2016
103-1 Explanation of the material topic and its －Boundary103-2 The management approach and its
Labor Practices
components
103-3 Evaluation of the management approach －402-1 Minimum notice periods regarding－
operational changes
GRI 403: Occupational Health and Safety 2018
103-1 Explanation of the material topic and its Labor Practices
Boundary
Occupational Safety and Healthand Health Management103-2 The management approach and its
Occupational Safety and Healthcomponents
and Health Management103-3 Evaluation of the management approach Occupational Safety and Healthand Health Management403-1 Workers representation in formal joint
Occupational Safety and Healthmanagement–worker health and safety
and Health Management
committees
403-2 Types of injury and rates of injury,
Occupational Safety and Healthoccupational diseases, lost days, andand Health Management
absenteeism, and number of work-related
fatalities
403-3 Workers with high incidence or high risk Occupational Safety and Healthof diseases related to their occupationand Health Management403-4 Health and safety topics covered in
Occupational Safety and Healthformal agreements with trade unions
and Health Management
GRI 404: Training and Education 2016248

Meiden Group Sustainability

103-1 Explanation of the material topic and its Labor Practices
Boundary103-2 The management approach and its
HR Development
components
103-3 Evaluation of the management approach －404-1 Average hours of training per year per
Labor Practices＞HR Data
employee404-2 Programs for upgrading employee skills Labor Practices
and transition assistance programs
HR Development
404-3 Percentage of employees receiving
Labor Practices＞HR Data
regular performance and careerdevelopment reviews
GRI 405: Diversity and Equal Opportunity 2016
103-1 Explanation of the material topic and its Labor Practices
Boundary103-2 The management approach and its
Labor Practices
components
103-3 Evaluation of the management approach Labor Practices
405-1 Diversity of governance bodies andLabor Practices
employees
405-2 Ratio of basic salary and remuneration of Labor Practices＞HR Data
women to men
GRI 406: Non-discrimination 2016
103-1 Explanation of the material topic and its －Boundary103-2 The management approach and its
Human Rights
components
103-3 Evaluation of the management approach －406-1 Incidents of discrimination and corrective －actions taken
GRI 407: Freedom of Association and Collective Bargaining 2016
103-1 Explanation of the material topic and its －Boundary
249

Meiden Group Sustainability

103-2 The management approach and its
Human Rights
components
103-3 Evaluation of the management approach －407-1 Operations and suppliers in which the－right to freedom of association andcollective bargaining may be at risk
GRI 408: Child Labor 2016
103-1 Explanation of the material topic and its －Boundary103-2 The management approach and its
Supply Chain Management
components
Human Rights
103-3 Evaluation of the management approach －408-1 Operations and suppliers at significant －risk for incidents of child labor
GRI 409: Forced or Compulsory Labor 2016
103-1 Explanation of the material topic and its －Boundary103-2 The management approach and its
Supply Chain Management
components
Human Rights
103-3 Evaluation of the management approach －409-1 Operations and suppliers at significant －risk for incidents of forced orcompulsory labor
GRI 410: Security Practices 2016
103-1 Explanation of the material topic and its －Boundary103-2 The management approach and its－
components
103-3 Evaluation of the management approach －410-1 Security personnel trained in human－rights policies or procedures
GRI 411: Rights of Indigenous Peoples 2016250

Meiden Group Sustainability

103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components
103-3 Evaluation of the management approach411-1 Incidents of violations involving rights ofindigenous peoples
GRI 412: Human Rights Assessment 2016
103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components
103-3 Evaluation of the management approach412-1 Operations that have been subject tohuman rights reviews or impact
assessments
412-2 Employee training on human rights
policies or procedures
412-3 Significant investment agreements andcontracts that include human rights
clauses or that underwent human rights
screening
GRI 413: Local Communities 2016
103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components
103-3 Evaluation of the management approach413-1 Operations with local community
engagement, impact assessments, anddevelopment programs
413-2 Operations with significant actual andpotential negative impacts on local
communities
GRI 414: Supplier Social Assessment 2016
251

－
－
－
Not applicable－
Human Rights－－
Human Rights－

Community
Community－
Biodiversity
Community
Not applicable

Meiden Group Sustainability

103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components
103-3 Evaluation of the management approach414-1 New suppliers that were screened usingsocial criteria414-2 Negative social impacts in the supply
chain and actions taken
GRI 415: Public Policy 2016
103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components
103-3 Evaluation of the management approach
415-1 Political contributions
GRI 416: Customer Health and Safety 2016
103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components
103-3 Evaluation of the management approach
416-1 Assessment of the health and safety
impacts of product and service
categories

Supply Chain Management
Supply Chain Management
Supply Chain Management
Supply Chain Management
Supply Chain Management－－－－
Product Responsibility
Product Responsibility
Product Responsibility
Product Initiatives(Management of chemical
substances in products)

Product Responsibility
416-2 Incidents of non-compliance concerning Not applicablethe health and safety impacts ofproducts and services
GRI 417: Marketing and Labeling 2016
103-1 Explanation of the material topic and its －Boundary103-2 The management approach and its－
252

Meiden Group Sustainability

components
103-3 Evaluation of the management approach －417-1 Requirements for product and service －information and labeling417-2 Incidents of non-compliance concerning Not applicableproduct and service information andlabeling
417-3 Incidents of non-compliance concerning Not applicable
marketing communications
GRI 418: Customer Privacy 2016
103-1 Explanation of the material topic and its －Boundary103-2 The management approach and its－
components
103-3 Evaluation of the management approach －418-1 Substantiated complaints concerning
Not applicablebreaches of customer privacy and lossesof customer data
GRI 419: Socioeconomic Compliance 2016
103-1 Explanation of the material topic and its －Boundary103-2 The management approach and its－
components
103-3 Evaluation of the management approach －419-1 Non-compliance with laws and regulations Not applicablein the social and economic area

253

Meiden Group Sustainability