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ENVIRONMENTCONSUMER ISSUES

2018

IndexIndex

Top Commitment

Sustainable Value
Creation Process

Top Commitment ････････････････････････ 002

Environmental Initiatives ･････････････････ 107

Sustainable Value Creation Process ･･････ 006

Environmental Management ･････････････ 108

Our Stance on CSR ･･････････････････････ 007

Environmentally-Conscious Monozukuri･･･ 115

CSR Policy ････････････････････････････ 007

Approaches to Climate Change ･･････････ 120

CSR Medium-term Plan･････････････････ 009

Approaches to Resources ･･････････････ 124Conservation and Recycling

Key Issues in CSR Activities･････････････ 010
Key CSR Issues and KPIs･･･････････････ 015

Our Stance on
CSR

Contribution to SDGs ･･･････････････････ 016
Stakeholder Engagement ････････････････ 020
Governance ･････････････････････････････ 036

Stakeholder
Engagement

GovernanceSocial Initiatives

Corporate Governance ･････････････････ 037

Environmental Action Plan and Results ･･･ 141

Risk Management ･････････････････････ 045

Key CSR Indicators and Results ･･････････ 160

Social Initiatives ･････････････････････････ 054

Key CSR Issues and KPIs･･･････････････ 160

For a Safe, Reliable, and ････････････････ 054
Comfortable Automotive Lifestyle

Sustainability Data ･････････････････････ 160

Together with our ･･･････････････････ 055
Business Partners

Respecting Human Rights ･･････････････ 072
Creating an organization in which ････････ 076
employees can participate actively
Protecting the Health and ････････････ 076
Safety of our Employees
Creating an Organization that ････････ 082
Values the Individual and Diversity

About Our
Reporting

Environmental Accounting ･･････････････ 138

Environmental Data of ･･････････････････ 144
Manufacturing Plants in Japan

Creating Social Values through ･･･････ 070
Innovations

Key CSR
Indicators andResults

Environmental Burden Data ･････････････ 136(Material Flow)

Compliance ･･･････････････････････････ 040

Quality Management ････････････････ 063

Environmental
Initiatives

Appropriate Management of ･････････････ 131
Chemical Substances

Fair Treatment and Evaluation ････････ 084
Human Resources Development to････ 085
Expand Individual Capabilities
Promotion of Diversity ･･･････････････ 088
Promotion of Work-Life Balance ･･････ 091
Employee Data ･････････････････････ 096
Social Contribution Activities ････････････ 097

1

Environmental Action Plan and Results ･･･ 163
Environmental Data of ･･････････････････ 163
Manufacturing Plants in Japan
Employee Data ････････････････････････ 163
Third-party Recognition of ･･････････････ 163
CSR Initiatives
About Our Reporting ････････････････････ 165
Report Scope and Structure ･････････････ 165
GRI Guideline Comparison Table ････････ 167
ISO Comparison Table･･････････････････ 211
Glossary ･･････････････････････････････ 213
Third-party Opinion ････････････････････ 214

IndexTop Commitment

Top Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Further Integration and Deepening of
CSR and Management for the Next 80
Years
Beda Bolzenius
President and CEO Calsonic

About Our
ReportingKansei Corporation

In April 2018, I was appointed as President and CEO of Calsonic Kansei Corporation. I am
honored to have received such an opportunity in this milestone 80th anniversary year since thefoundation of the company.

2

IndexTop Commitment

Sustainable Value
Creation Process

Respond Speedily to Market Environment
Changes and Create New Innovation Using
the Technologies We Have AccumulatedOver Our 80-year History
The Calsonic Kansei Group and the environment of the markets we are involved in have enteredan era of great change.
At the end of March 2017, the Calsonic Kansei Group underwent a major transformation, moving

Our Stance on
CSR

out from under the umbrella of the Nissan Motor Group to become an independent manufacturer of
automotive parts.
The automotive industry is in the midst of bewildering change. The major pillars of that change are

Stakeholder
Engagement

the trends known as ACES (A: Autonomous; C: Connected; E: Electronic; S: Shared).
In 2017, Calsonic Kansei announced its new Medium-term Business Plan “Compass 2021.”
Focusing on the domains of Cabin Innovation and Energy Management, our aim is to be a systemsolution provider using our DNA for technological innovation and our passion for Monozukuri.

Governance

These focus domains are closely connected to the ACES trends. We will respond to these trends
by, for example, building integrated CPM (cockpit modules) by leveraging a wide range oftechnologies gained through developing diverse products and by leveraging electrical power
management and heat management technologies, to provide systems for optimizing the energy

Social Initiatives

ﬂows of electrically-powered vehicles.
The market environment is in a constant state of ﬂux and new demands are always being created.

Environmental
Initiatives

We must continue to provide outstanding technologies of high quality. Standing still is not an option.
Meanwhile, to survive against cutthroat competition, instead of trying to cover all bases, we need tofocus strategically on speciﬁc products and solutions.
Leveraging my own experience in the automotive industry and the technologies that Calsonic

Key CSR
Indicators andResults

About Our
ReportingKansei has built up over the years, I will help to create innovation and contribute to the further
growth of the Calsonic Kansei Group.

Fiscal 2017, the Year We Took a Giant Step
Toward the Next StageFor our consolidated performance in Fiscal 2017, which was the ﬁrst year of the new Medium-TermBusiness Plan “Compass 2021”, despite the tough market environment we managed to maintainone trillion yen, which is the same level as the previous term,3through a range of sales promotion activities and management eﬀorts. We aim to further increase
Index

revenue and sales based on the three growth strategies deﬁned in “Compass 2021”.
In the area of the environment, with the objective of strengthening our environmental activities on a
global scale, we revised our environmental policy in March 2018 and renamed it the CK GreenTop Commitment

Policy.
Further, in Compass 2021, we established targets for reducing Scope 1 and Scope 2 CO2emissions, founded on science-based targets (SBT). In Fiscal 2017, we made steady progress in

Sustainable Value
Creation Process

our preparations for achieving those targets.
In terms of society, we placed emphasis on social issue responses that also encompass our supply
chains, and proceeded with initiatives jointly with our suppliers and other partners.

Our Stance on
CSR

Speciﬁcally, we conducted due diligence of our major suppliers regarding compliance and CSR
overall, and made progress on the revision and penetration of purchasing and other guidelines. In
Fiscal 2018, we will take the outcomes of these activities and connect them to concrete action,
including identifying problems and conducting explanatory brieﬁngs.

Stakeholder
Engagement

Our eﬀorts in social contribution activities are centered on the four domains of next-generation
support, safety, environment, and community. Moving forward, we will share best practice in eachregion with the aim of realizing globally integrated activity in this area.

GovernanceSocial Initiatives

Environmental
Initiatives

Accelerating Growth as a Single, United
Team that is Both Diverse and Cohesive
Because Calsonic Kansei handles a large variety of products, our organization must inevitably be

Key CSR
Indicators andResults

multi-faceted. However, I believe ﬁrmly in the importance of each and every employee working
cohesively so we can grow as a single, united team.
To expand our business globally, we will promote diversity in our team. While valuing the diversityof our people in terms of gender, nationality, and ability, and the diversity of our expert technology

About Our
Reportingand know-how gained by handling many diﬀerent types of products, we will unite through close
communication.
We are actively engaged in reforming working styles as the foundation for achieving a single,
united team. By pursuing initiatives for operational eﬃciency improvements and establishing avariety of systems to facilitate diverse working styles, we will strive to create more satisfying
workplace environments.

4IndexPursuing Sustainable Management from aLong-term Perspective that Combines CSR
and Management

Top Commitment

The Calsonic Kansei Group systematized its CSR activities in Fiscal 2015. In addition to raisingawareness about CSR activities, we contributed to ﬁnding solutions to social issues through ourbusiness.

Sustainable Value
Creation Process

In Compass 2021, we declared CSR as one of the foundations of our business management. We
will now respond ﬂexibly to global economic and social developments with a long-term perspective
and, using our management resources eﬃciently, aim for the further integration and deepening of
CSR activities and management. To this end, we will continue to engage proactively with our

Our Stance on
CSR

stakeholders.
Further, in Fiscal 2017, we incorporated the United Nationsʼ Sustainable Development Goals(SDGs) * into our review of key CSR challenges. In addition to linking them to our 15 key CSR

Stakeholder
Engagement

challenges, we established focus objectives in our business activities that will contribute toachieving these global goals.
So we can continue to grow and develop in perpetuity for the next 80 years and beyond, theGovernanceSocial Initiatives

Calsonic Kansei Group will embrace challenge and pursue our operations as a single, united
team. I look forward to the continued, unwavering support and cooperation of our stakeholders.

* In September 2015, more than 150 members of theUnited Nations attended the UN Sustainable
Development Summit at UN Headquarters in New Yorkand adopted the agenda, which contains a declaration

Environmental
Initiatives

and goals that serve as a plan of action for the prosperityof the planet and people. These are the 17 Sustainable
Development Goals and 169 targets, known as the
SDGs.

Key CSR
Indicators andResults

About Our
ReportingContribution to SDGs

5

IndexTop Commitment

Sustainable Value Creation Process

The Calsonic Kansei Group has addressed solutions to social issues related to mobility by using
the diverse technologies it has cultivated through the manufacture of automotive components.
Going forward, leveraging our deep knowledge of the mobility market, we will promote innovation
and, through the creation of value that is distinctive to the Calsonic Kansei Group, contribute to

Sustainable Value
Creation Process

realizing a sustainable society.

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

Sustainable Value Creation Process6IndexTop Commitment

Our Stance on CSR

CSR Policy
CSR Policy

Sustainable Value
Creation Process

Calsonic Kanseiʼs CSR Policy outlines the responsibilities and policies Calsonic Kansei promises to
fulﬁll for its stakeholders, with a view to achieving its “Corporate Vision.” Based on this policy, each
Our Stance on
CSR

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

Stakeholder
Engagement

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

Governance

Responsibilities to Business Partners
We will collaborate with our business partners, who provide us with components and services, asSocial Initiatives

equals, and aim to create mutual improvement and sustainable growth through fair and ethicalbusiness practices.

Environmental
Initiatives

Responsibilities to Employees
We respect the diversity and value of each employee and provide opportunities for them to develop
talents that contribute to the company and to society, as well as securing a healthy and safe

Key CSR
Indicators andResults

workplace environment. With this approach, we will create a company in which every employee canenjoy a rich life of hope, passion, and pride.
Responsibilities to Employeesʼ Health and Safety

About Our
ReportingBased on the basic principle “the Health and Safety of employees takes precedence over all,” weare committed to creating the safest and most appropriate workplace in the auto-parts industry
through the participation of all employees.

Responsibilities to Shareholders
We aim to improve our proﬁtability by continuously developing competitive products, and at thesame time, we aim to enhance the companyʼs corporate value by conducting fair business trade
and with proactive information disclosure in order to meet the expectations of our shareholders.

7IndexResponsibilities to Society
Monozukuri
We will contribute to the automotive society through our products by focusing on three key

Top Commitment

technologies: Environment, Safety and Comfort.
Environment: Technologies for developing eco-friendly-vehicles
Safety: Technologies for creating automotive society without car accidents Comfort:

Sustainable Value
Creation Process

Technologies for developing vehicles which drivers can drive with comfort
Environment
We will contribute to creating an enriched society by each employee always being aware of the

Our Stance on
CSR

importance of nature and putting eﬀort into conserving the environment through intellectual
innovation gained from the integration of new technologies.
Participation in Social Activities / Social Contributions

Stakeholder
Engagement

We will contribute to the sustainable development of society as good corporate citizens byproactively participating in social activities of local communities through our business activities.

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting8IndexOur Stance on CSR

CSR Medium-term Plan
Top Commitment

Basic Stance
Sustainable Value
Creation Process

Taking into consideration the progress made in CSR initiatives, the Calsonic Kansei Group
formulated its ﬁrst CSR Medium-term Plan as an organization in May 2016. By incorporating
requests from stakeholders more fully than before, the new plan stresses the importance of

Our Stance on
CSR

expanding the target for the PDCA cycle to all corners of our globalizing Group.
In ﬁscal 2017, in light of the new Medium-term Business Plan, Compass 2021, which wasannounced in September 2017, we reviewed our key CSR issues. We plan to update the CSR

Stakeholder
Engagement

Medium-term Plan before the end of Fiscal 2018.

CSR Vision
Governance

Toward the goal of remaining an honest and trusted company, we strive to create arewarding workplace, develop aware employees who tackle social issues, build a resilientcompany, and contribute to the achievement of a sustainable society.

Social Initiatives

Priority Areas
1. Improving Employee Awareness

Environmental
Initiatives

In addition to creating attractive workplaces that are pleasant to work in, we are striving to raiseawareness so that our employees themselves will pick up on social issues and engage in ﬁnding
solutions to them.
(1) Creating a rewarding workplace (decent work)

Key CSR
Indicators andResults(2) Improving employee awareness about tackling social issues
2. Coexisting with Society

About Our
Reporting

As a global company, we are building a system that complies with global rules.
(1) Support for international norms(2) Resolution of social issues through business operations(3) CO2 emission reduction activities based on SBT
3. Improving Corporate ValueAs we strengthen our environmental, social, and governance (ESG) initiatives in both ﬁnancial andnon-ﬁnancial operations, we place a particular focus on the development of eco-friendly products,
so that we can continue to contribute to the realization of a sustainable society, while also growing
sustainably ourselves at the same time.
(1) Achieving the Medium-term Business Plan
(2) Strengthening our CSR activities

9IndexOur Stance on CSR

Key Issues in CSR Activities
Top Commitment

Identiﬁcation of Key CSR Issues
Sustainable Value
Creation Process

The Calsonic Kansei Group has identiﬁed its key CSR issues and KPIs as a concrete action planfor the CSR Medium-term Plan, and is striving to reliably implement the PDCA cycle to achieve
them. In Fiscal 2017, with the announcement of the new Medium-term Business Plan in September

Our Stance on
CSR

2017 titled Compass 2021, we conducted a review of the key CSR issues that we identiﬁed in
Fiscal 2015, and aligned them with the rapidly-changing expectations of society and with the new
management plan.

Stakeholder
Engagement

Calsonic Kansei Groupʼs Materiality
The process of identifying the key CSR issues in Fiscal 2015 entailed classifying the contents ofthe various initiatives which we have rolled out to date in line with the seven core subjects laid out

Governancein ISO 26000 (Guidance on social responsibility) into two categories based on (1) stakeholder
expectations, and (2) the time required to achieve them or the degree of diﬃculty in achieving
them. We then determined their priority and identiﬁed the key CSR issues.

Social Initiatives

In the ﬁscal 2017 review, we ﬁrst conﬁrmed the latest trends in social expectations before carefully
examining the contents of our initiatives. We then conducted an assessment based on (1)stakeholder expectations, and (2) impact on our business, based on which we identiﬁed 23 key
issues for the Calsonic Kansei Group to address, 15 of which we identiﬁed as top priority issues.

Environmental
Initiatives

The Materiality Map was released after being reviewed by the Corporate Oﬃcer responsible for
CSR.
We also set KPIs for each of those issues, and we are implementing the PDCA cycle based on

Key CSR
Indicators andResults

their respective degree of priority. The progress of initiatives for each key issue and their outcomesare reviewed by senior management and disclosed in our sustainability reports.

About Our
Reporting10IndexMateriality Map

Top Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

Governance

23 Key issues identiﬁed
Social Initiatives

Top Priority Issues
Climate change action
Environment

Prevention of pollution
Eﬀective use of resources

Environmental
Initiatives

Improve ESG in supply chain
Creating social values through innovations
Respecting human rights

Key CSR
Indicators andResults

Occupational health and safety
SocialPromoting work-life balance
Promoting diversity

About Our
Reporting

Human resource development
Improve customer satisfaction
Quality improvement
ESG risk management
Governance

Strengthening compliance
Strengthening information security

11IndexKey Issues
Protection of water resources
Environment
Protection of biodiversity
Dialogue between management and employees

Top Commitment

SocialPromotion of social contribution activities
Productivity improvement
Strengthening of business continuity management (BCM/BCP)

Sustainable Value
Creation Process

GovernancePrevention of corruption and bribery
Maintenance and disclosure of appropriate tax practices

Our Stance on
CSR

Global Calsonic Kansei headquarters played a central role in the materiality analysis, which
was conducted from a global group perspective.
In the analysis, to reﬂect stakeholdersʼ expectations in ﬁne detail, we adopted the following

Stakeholder
Engagement

viewpoints as evaluation axes.
1. Feedback through questionnaire and day-to-day dialogue
Results of questionnaire surveys administered to the Governor of Saitama Prefecture, Mayor of
Saitama City, President of Saitama University, local residents and companies, as well as opinions

Governanceexpressed by customers, employee questionnaires, etc.
2. Global economic and social mega-trends and initiatives
World Economic Forumʼs Global Risk 2017, United Nationsʼ Global Compact and Sustainable
Development Goals (SDGs), reviews of industry scandals based on publicly available information,

Social Initiativesetc.
3. International CSR guidance and guidelines
ISO 26000, GRI Sustainability Reporting Standards, Sustainability Accounting Standards Board

Environmental
Initiatives(SASB), etc.
4. Evaluations by ESG investment rating companies
FTSE4Good, Dow Jones Sustainability Index, Sustainalytics, CDP Climate Change, CDP Water,

Key CSR
Indicators andResults

Toyo Keizai CRS Rankings, etc.
To ascertain and reﬂect the impact on our company, we worked with the representatives ofindividual departments in Japan and overseas after considering the Medium-term Business Plan,
Compass 2021, holding multiple conversations with them, and then we obtained the approval of

About Our
Reportingthe heads of the relevant divisions and the Corporate Oﬃcer responsible for CSR for the key
issues and their prioritization.

12

IndexTop Commitment

Active Incorporation of Expert Recommendations

For some time, Calsonic Kansei has actively sought to implement the recommendations of
independent experts. We obtained recommendations from external consultants regarding theresults of the materiality analysis that was reviewed in ﬁscal 2017, based on developments in theautomotive parts industry. For the ﬁscal 2018 Sustainability Report, we again obtained a third-

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

party opinion from Ms. Kumi Fujisawa, a highly respected expert in the areas of CSR and ESG.

Third-party Opinion

Important Points Raised by Stakeholders
In terms of the degree of importance of CKʼs materiality discussed in the Environmental
Communication meetings, stakeholders expressed particularly high expectations regarding theenvironment (water pollution, environmental pollution) and compliance. No particular points ofGovernanceconcern were raised.
In addition, our major stakeholders raised the issues of “contributing to the development of humanresources needed by society,” and “spreading CSR awareness to other companies.”
We will continue to create opportunities to communicate with local residents about theSocial Initiatives

environment. We will address compliance as a top priority issue.
In terms of “contribution to the development of human resources needed by society,” for thedevelopment for Monozukuri human resources we are responding with initiatives such as

Environmental
Initiatives

opportunities for hands-on experiences for elementary school pupils, scholarship programs, andinternships.
In terms of “spreading CSR awareness to other companies,” we are conducting initiatives such aspresenting case studies when we have opportunities to interact with other companies, such as

Key CSR
Indicators andResultsthrough the various industry organizations.

About Our
Reporting13

Approaches for Tackling the Key CSR Issues
Index

The Calsonic Kansei Group has appointed certain divisions to be responsible for each of the 23 key
CSR issues. Since Fiscal 2016, these responsible divisions have played a central role in advancing
the steady execution of the KPIs.

Top Commitment

Further, in light of the increasingly borderless nature of business, we are actively extending the scopeof the PDCA cycle overseas beyond Japan, and setting not only key CSR issues, but also KPIs, withthe cooperation of our overseas locations. With Calsonic Kansei global headquarters acting as thedivision with overall control, we will set up divisions in each region to manage CSR and pursue CSR

Sustainable Value
Creation Process

initiatives that are precisely in line with the individual characteristics of each region.

CK Group CSR Structure

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting14

IndexOur Stance on CSR
Top Commitment

Key CSR Issues and KPIs
Calsonic Kansei Group KPIs (Key Performance Indicators)
KPIs, targets and responsible divisions have been set for each key CSR issue, and the PDCA

Sustainable Value
Creation Process

cycle is being implemented according to the degree of priority of key.
Key CSR Issues and KPIs

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting15

Our Stance on CSR
Index

Contribution to SDGs
Calsonic Kansei and the Sustainable Development Goals (SDGs)

Top Commitment

In September 2015, more than 150 members of the United Nations attended the UN Sustainable
Development Summit at UN Headquarters in New York. The outcome of the summit was the adoption of“Transforming Our World: the 2030 Agenda for Sustainable Development.” The Agenda contains a

Sustainable Value
Creation Processdeclaration and goals that serve as a plan of action for people, planet and prosperity. These goals are 17
Sustainable Development Goals and 169 targets, which are together known as the SDGs.
As a global company, the Calsonic Kansei Group works throughout its entire value chain to bringsolutions to the challenges the world faces today through its business activities and CSR activities, and

Our Stance on
CSR

strives to promote further activities aimed at achieving the internationally agreed goals of the SDGs.

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR Issues and SDGs
The Calsonic Kansei Group has identiﬁed its key CSR issues and KPIs as a concrete action plan for

Key CSR
Indicators andResults

the CSR Medium-Term Plan and is striving to reliably implement the PDCA cycle to address them.
In Fiscal 2017, with the announcement of the new Medium-term Business Plan, Compass 2021, we
reviewed our key CSR issues. In the process of this review, we conducted a materiality analysis,
incorporating both a global group perspective and the perspectives of our major regional

About Our
Reportingstakeholders, and took the SDGs into consideration in identifying key CSR issues as expectations
from society and identifying the order of priority of the key CSR issues. Of the 23 key CSR issues
we identiﬁed, we linked the 15 top priority issues to the SDGs that we will focus on until 2021 andclariﬁed the SDGs that the Calsonic Kansei Group will strengthen its approaches to going forward.
Calsonic Kansei Corporationʼs initiatives towards
achieving the SDGs were highlighted as a caseexample on the Ministry of Foreign Aﬀairs website.
Ministry of Foreign Aﬀairs website
Key Issues in CSR Activities

16Top Priority CSR Issues

Index

Related SDGs

Quality improvement

Related SDG targets
3.6 By 2020, halve the number of deaths
and injuries from road traffic accidents
9.1 Develop quality, reliable, sustainable
and resilient infrastructure, including
regional and transborder infrastructure, tosupport economic development and humanwell-being, with a focus on affordable andequitable access for all

Top Commitment
3.6 By 2020, halve the number of deaths
and injuries from road traffic accidents

Occupational health and safety

3.9 By 2030, substantially reduce thenumber of deaths and illnesses fromhazardous chemicals and air, water andsoil pollution and contamination

Sustainable Value
Creation Process

3.a Strengthen the implementation of theWorld Health Organization Framework
Convention on Tobacco Control in all
countries, as appropriate
16.3 Promote the rule of law at thenational and international levels andensure equal access to justice for all

Strengthening compliance

Our Stance on
CSR

16.b Promote and enforce nondiscriminatory laws and policies forsustainable development
12.2 By 2030, achieve the sustainable
management and efficient use of natural
resources

Effective use of resources

Stakeholder
Engagement

12.4 By 2020, achieve theenvironmentally sound management ofchemicals and all wastes throughout theirlife cycle, in accordance with agreed
international frameworks, and significantly
reduce their release to air, water and soil inorder to minimize their adverse impacts onhuman health and the environment

Governance12.5 By 2030, substantially reduce waste
generation through prevention, reduction,
recycling and reuse
13.1 Strengthen resilience and adaptive
capacity to climate-related hazards andnatural disasters in all countries

Climate change action

Social Initiatives

13.3 Improve education, awarenessraising and human and institutional
capacity on climate change mitigation,
adaptation, impact reduction and early
warning
15.1 By 2020, ensure the conservation,
restoration and sustainable use ofterrestrial and inland freshwater
ecosystems and their services, in particularforests, wetlands, mountains and drylands,
in line with obligations under international
agreements

Environmental
Initiatives

Key CSR
Indicators andResults

3.6 By 2020, halve the number of deaths
and injuries from road traffic accidents

Improve customer satisfaction

9.1 Develop quality, reliable, sustainable
and resilient infrastructure, including
regional and transborder infrastructure, tosupport economic development and humanwell-being, with a focus on affordable andequitable access for all

About Our
Reporting17Top Priority CSR Issues

Index

Related SDGs

Create social values through innovations

Related SDG targets
3.6 By 2020, halve the number of deaths
and injuries from road traffic accidents
7.3 By 2030, double the global rate of
improvement in energy efficiency
9.1 Develop quality, reliable, sustainable
and resilient infrastructure, including
regional and transborder infrastructure, tosupport economic development and humanwell-being, with a focus on affordable andequitable access for all

Top Commitment

11.6 By 2030, reduce the adverse percapita environmental impact of cities,
including by paying special attention to air
quality and municipal and other waste
management

Sustainable Value
Creation Process

12.2 By 2030, achieve the sustainable
management and efficient use of natural
resources
12.4 By 2020, achieve theenvironmentally sound management ofchemicals and all wastes throughout theirlife cycle, in accordance with agreed
international frameworks, and significantly
reduce their release to air, water and soil inorder to minimize their adverse impacts onhuman health and the environment

Our Stance on
CSR

12.5 By 2030, substantially reduce waste
generation through prevention, reduction,
recycling and reuse

Stakeholder
Engagement

13.3 Improve education, awarenessraising and human and institutional
capacity on climate change mitigation,
adaptation, impact reduction and early
warning
5.1 End all forms of discrimination against
all women and girls everywhere

Promoting diversity

Governance

5.5 Ensure women’s full and effective
participation and equal opportunities forleadership at all levels of decision-making
in political, economic and public life
8.2 Achieve higher levels of economic
productivity through diversification,technological upgrading and innovation,
including through a focus on high-value
added and labor-intensive sectors

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

8.5 By 2030, achieve full and productive
employment and decent work for all
women and men, including for young
people and persons with disabilities, andequal pay for work of equal value
Respecting human rights

10.2 By 2030, empower and promote thesocial, economic and political inclusion ofall, irrespective of age, sex, disability, race,
ethnicity, origin, religion or economic orother status

Promoting work-life balance

5.5 Ensure women’s full and effective
participation and equal opportunities forleadership at all levels of decision-making
in political, economic and public life
8.2 Achieve higher levels of economic
productivity through diversification,technological upgrading and innovation,
including through a focus on high-value
added and labor-intensive sectors

About Our
Reporting

3.9 By 2030, substantially reduce thenumber of deaths and illnesses fromhazardous chemicals and air, water andsoil pollution and contamination

Prevention of pollution

6.3 By 2030, improve water quality by
reducing pollution, eliminating dumping andminimizing release of hazardous chemicals
and materials, halving the proportion of
untreated wastewater and substantially
increasing recycling and safe reuse
globally
14.1 By 2025, prevent and significantly
reduce marine pollution of all kinds, inparticular from land-based activities,
including marine debris and nutrient
pollution

18

Top Priority CSR Issues

Index

Related SDGs

Improve ESG in supply chain

8.7 Take immediate and effective
measures to eradicate forced labor, end
modern slavery and human trafficking andsecure the prohibition and elimination of
the worst forms of child labor, including
recruitment and use of child soldiers, andby 2025 end child labor in all its forms
10.2 By 2030, empower and promote thesocial, economic and political inclusion ofall, irrespective of age, sex, disability, race,
ethnicity, origin, religion or economic orother status

Top Commitment

12.2 By 2030, achieve the sustainable
management and efficient use of natural
resources

Sustainable Value
Creation Process

12.4 By 2020, achieve theenvironmentally sound management ofchemicals and all wastes throughout theirlife cycle, in accordance with agreed
international frameworks, and significantly
reduce their release to air, water and soil inorder to minimize their adverse impacts onhuman health and the environment

Our Stance on
CSR

Stakeholder
Engagement

Related SDG targets

13.3 Improve education, awarenessraising and human and institutional
capacity on climate change mitigation,
adaptation, impact reduction and early
warning
Human resources development

8.2 Achieve higher levels of economic
productivity through diversification,technological upgrading and innovation,
including through a focus on high-value
added and labor-intensive sectors

Strengthening information security

3.6 By 2020, halve the number of deaths
and injuries from road traffic accidents*Making our contribution by strengthening
cyber security in vehicles

Governance16.4 By 2030, significantly reduce illicit
financial and arms, strengthen the recovery
and return of stolen assets and combat all
forms of organizedSocial Initiatives

17.14 Enhance policy coherence forsustainable development

ESG risk management

Environmental
Initiatives

SDGs Targeted in Business Strategies

Key CSR
Indicators andResults

In the Calsonic Kansei Group’s new Medium-term Business Plan, Compass 2021, established infiscal 2017, we set Energy Management and Cabin Innovation as the key focus domains for ourbusiness. Through development and innovations in these two domains, we will aim to reduce theenvironmental footprint of the production processes and at the usage stages of our products, toAbout Our
Reportingprovide society with safe, secure and comfortable mobility experiences that will expand people’s
freedom. As well as serving as a contribution by Calsonic Kansei Group to a sustainable society,this is also a growth strategy for the company itself.
The Calsonic Kansei Group will contribute, through its business strategies, to the SDGs that the
Calsonic Kansei Group is contributing to through its business strategy are the following six. SDGs,
which are related to our key CSR issues of “innovations to create social value,” “quality
improvement,” “improvement of customer satisfaction,” and “strengthening of information security.”

19

IndexTop Commitment

Stakeholder Engagement

Promoting Active Information
Disclosure and Dialogue with an
Awareness of Transparency

Sustainable Value
Creation Process

Basic StanceOur Stance on
CSR

GlobalPolicyThe Calsonic Kansei Group values the transparency of its management both within and outside

Stakeholder
Engagement

the company, and is committed to the active disclosure of information to its stakeholders. It isalso engaged in the enhancement of activities to promote fair and constructive dialogue with its
stakeholders.
In identifying major stakeholders in the ﬁscal year in question, the CSR Secretariat(CSR/Public Relations & IR Department) undertakes reviews as required, based on the CSR

Governance

Policy and CSR Medium-Term Plan, as well as the key CSR issues that are reviewed in light ofsocietyʼs expectations and other factors.

Social Initiatives

Major stakeholders

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting20

IndexStakeholder Initiatives
Top Commitment

GlobalActivity

Sustainable Value
Creation Process

FY2017 results
Stakeholder

Major engagements

Our Stance on
CSR

Meetings with top executives
Regular sales/marketing andCustomers

Automotive
manufacturers

proposal activities
Customer satisfaction surveys

Stakeholder
Engagement

Exhibitions

GovernanceRegular procurement activities

Opinion exchanges

Suppliers Meetings (policy
brieﬁngs, liaison meetings)
Supplier audits

Social Initiatives
Buiness
partners(Suppliers)

Environmental
Initiatives

Companies that
supply partsand services to
the CalsonicKansei Group

Supplier exhibitions at CK
headquarters
Due diligence surveys
Survey regarding action on conﬂict
minerals
Distribution of guidelines (CSR,
green procurement)
Establishment of supplier
whistleblower desk

Key CSR
Indicators andResults

About Our
Reporting

21

Initiatives
To respond to the increasingly diverse
requirements and expectations of thetimes and to provide a high-quality
spirit and service that will satisfy ourcustomers, we conduct an annual
quantitative evaluation of each of our
product areas from six perspectives,
including quality. This initiative has
been ongoing since FY2005, and theevaluations have improved every year.
These evaluations also gather together
opinions on areas that require
improvement. In FY2017, opinions
expressed included the need for
improvement in the area ofmanagement.

The Calsonic Kansei Group iscommitted to working together with our
suppliers as equal partners for themutual achievement of greater
competitiveness and sustainablegrowth, and by following fair and ethicalbusiness practices. Suppliers meetings
are held on an annual basis, at which
we communicate the Groupʼs
procurement policies for the ﬁnancial
year, present awards to suppliers thathave excelled in their performance, andconduct surveys. Separate liaison
meetings are also held for eachprocurement category, as part of oureﬀorts to achieve two-way
communication.

Stakeholder

Major engagements

Index

Initiatives

Personnel reviews
CK WAY and Compliance
Penetration Survey
Employee Commendation
Program

Top Commitment

Employee Awareness Survey

Employees

Sustainable Value
Creation Process

All employees of
the CalsonicKansei Groupand theirfamilies, retired
employees(Performance Characteristic
Proﬁle Survey)
Labor-management roundtables
Advice desk
Various counselling services
Internal whistleblowing scheme

We are engaged in eﬀorts that respect
the diversity and value of each individual
employee and that will give them aplace to develop their own character, sothey may better contribute to thecompany and to society, and to a safe,
healthy environment. Every year, wesurvey all Calsonic Kansei Group
employees about the degree to which
they practice the ten action principles of
our action guideline, the CK WAY. We
also collect anonymous comments
about problematic behavior, andactivate the PDCA cycle to pursue
improvements. For our retired
employees, we send out the company
newsletter for the ﬁrst two years after
their retirement and endeavor tomaintain communication with them.

Intranet

Our Stance on
CSR

Intranet Comment Form
Company Newsletter

Stakeholder
Engagement

General Meeting of Shareholders
Shareholders

Calsonic Kansei
shareholders

Facility tours
Regular meetings

Governance

Responses to laws andregulations

Social Initiatives
Government,
Municipalities

Environmental
Initiatives

Government
agencies andmunicipalities inall regions inwhich theCalsonic KanseiGroup hasbusiness
locations

Regular individual meetings
Meeting between Governor of
Saitama Prefecture and former
CEO Moriya
Cooperation with government
events (volunteering,sponsorships, etc.)
Support for local government
activities

Key CSR
Indicators andResults

About Our
Reporting22

Through regular meetings, we reporton the business and provide ongoing
improvement activities in response toshareholder demands andexpectations.

Through meetings with the top ﬁguresin the administrations of Saitama
Prefecture and the City of Saitama,
where our corporate headquarters arelocated, and regular meetings withother oﬃcials, we share issues andmutual requests with the local
community and reﬂect them in our
corporate activities. We are also
strengthening our contributions to theregion, including providing support for
local government activities (e.g.,The
Calsonic Kansei Next-Generation
Scholarships for Saitama Prefecture,
support for forestation programs,
donation of school backpack covers to
Saitama City). Both in Japan andoverseas, we aim to contribute to local
communities as a good corporate
citizen by recommending andsponsoring staﬀ volunteers atgovernment-hosted events.
We ask the Saitama Prefecture andSaitama City administrations about
their expectations regarding CalsonicKanseiʼs key CSR issues and use their
feedback to inform our initiatives.

Stakeholder

Major engagements

Index

Kids Engineer program
Traveling classroom activities for

Top Commitment
Local
communities

Sustainable Value
Creation Process

Local residents
andcommunities inall regions inwhich theCalsonic KanseiGroup hasbusiness
locations

elementary schools
Clean-up activities
Environmental Communication
meeting
Meetings with residentsʼ
associations
Business site tours
Online Inquiry Form

Initiatives
The Calsonic Kansei Group undertakesa range of activities aimed at gaining
the acknowledgement and trust of local
residents. As part of these initiatives,
since 2015, once every two years, we
invite representatives of local residentsʼ
associations and companies to the
Calsonic Kansei R&D Center andcorporate headquarters to take part in“Environmental Communication”
meetings to discuss our environmental
activities. Similarly, our other facilities
around Japan and overseas haveestablished various opportunities forcommunication with their local
communities and are engaged incooperation with the local regions. We
ask the people who attend theEnvironmental Communication
meetings about their expectations
regarding our key CSR issues and use
their feedback to inform our initiatives

Our Stance on
CSR

Stakeholder
Engagement
NGO/NPO

Organizations
involved in
sectors to which
Calsonic Kansei
should makeparticular
contributions

Individual discussions
Participation in activities

GovernanceWe recognize in particular the
automotive industryʼs impact on theenvironment and seek to work together
with environment-related nongovernment and non-proﬁtorganizations. We participate in and/or
provide assistance for theseorganizationsʼ environmental protection
activities based on our individual
discussions with them. We also provide
support for organizations that aim tonurture future generations.
Overseas, as well, we seek to makesociety better through collaborations
with local non-government and nonproﬁt organizations that are engaged invarious programs.

＊As of Fiscal 2017

Social Initiatives

Customers
Environmental
Initiatives

Ongoing Customer Satisfaction Surveys
Key CSR
Indicators andResults

Japan

Overseas

SystemThe Calsonic Kansei Group conducts an annual Customer Satisfaction Survey to gauge ourcustomersʼ evaluation of our corporate activities. This survey has been conducted every year

About Our
Reportingsince 2005 and was held for the thirteenth time in 2017.
Using a survey, respondents are asked to evaluate Calsonic Kansei on a ﬁve-point scale in theindividual categories of Quality, Cost, Delivery, Development, Management, and Sales(QCDDMS). They are also invited to make comments regarding speciﬁc requests for
improvement.
There are four key points relating to the analysis of the survey results.
The same items are evaluated every year so we can monitor changes over time. The
respondents are made clear and the status of collection of the completed surveys is
ascertained (to understand the relationship with the customers).
Changes and comments are conﬁrmed and issues clariﬁed.

23

Measuress for improving identiﬁed issues are incorporated into the next ﬁscal yearʼs plans
and implemented.
Index

With this survey as a point of connection, we will further enhance our communication with ourcustomers and aim to improve customer satisfaction.

Top Commitment

Implementing the following measures based on the ﬁndings of the Fiscal 2016 survey resulted
in a 0.07-point increase in the evaluation rating in the Fiscal 2017 survey.
Strengthening of sales structures
Opening oﬃces closer to customers

Sustainable Value
Creation Process

Prompter responses
We will also analyze the results of the Fiscal 2018 survey and continue to add new measuresand undertake other improvements.

Our Stance on
CSR

Fiscal 2017 Survey Results and Response
We analyze the survey data by customer, product and region.
The following represents some of the customer feedback received during Fiscal 2017.

Stakeholder
Engagement

Points for Improvement by Function
Sales

Governance

1. Issues related to costs and cost details (281 cases)
2. Issues related to response and speed (51 cases)
3. Issues related to visits/communication (22 cases)
Development

Social Initiatives

1. Issues related to new development and advanced development (60 cases)
2. Issues related to proposal activities (59 cases)
3. Issues related to management (project management, etc.) (58 cases)

Environmental
Initiatives

Quality
1. Issues related to management (123 cases)
2. Issues related to response and speed (51 cases)

Key CSR
Indicators andResults

3. Issues related to analysis capabilities (25 cases)
We hope that the planning and implementation of improvement proposals for each of thesefunctions will lead to improved customer satisfaction and the establishment of better
relationships.

About Our
Reporting24IndexFY2017 Customer Satisfaction Evaluation by Product(Change from FY2016)
Top Commitment

Sustainable Value
Creation ProcessUP

Our Stance on
CSR

Stakeholder
Engagement

DOWN

Product

Total average

A

0.30

B

0.22

C

0.13

D

0.10

E

0.07

F

0.05

G

0.00

H

-0.03

I

-0.03

J

-0.05

K

-0.10

L

-0.17

GovernanceSocial Initiatives

FY2017 Customer Satisfaction Evaluation by Item

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting25

IndexTrends in Customer Evaluation Ratings (5 points is thehighest score)
Top Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

Number of responses received

Evaluation point

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting26

Stakeholder Engagement

Employee
Index

Employee Workshop
Toward Creating Sustainable ValueTop Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Young Employees Think About Sustainable Value
Creation

Environmental
Initiatives

OutlineFor the Group to unite as one to create sustainable value, a change in the consciousness of each and every
employee is essential. To create an opportunity to think about how to reﬂect sustainability perspectives in

Key CSR
Indicators andResults

corporate management and how to connect it to oneʼs own work, 15 young employees, in whose hands the futurelies, were chosen from development, production, sales, and administration to attend a workshop on this topic.
After listening to a lecture by Peter D. Pedersen, Executive Director of The Academy for
Corporate/Collaborative/Creative Leadership (TACL) on the concept of “trade-on”*, which is a mega-trend in

About Our
Reportingsustainability, the workshop participants divided into groups to discuss what kinds of innovations their own
companies needed and come up with ideas.
The workshop concluded with all of the participants presenting to the group on what they had learned through thelecture and workshop. It is hoped that these 15 participants will become inﬂuencers and spread what they havelearned throughout their respective divisions.
*Trade-on is a concept in which, instead of corporate proﬁt and social value creation being in a dichotomous relationship (a trade-oﬀ relationship), themore a company contributes to the creation of social value, the more the companyʼs value increases.
Alternatively, the more good companies grow and prosper, the more healthy social and natural environment activities will be encouraged. (Peter D.
Pedersen's deﬁnition)

Held on Monday, March 5, 2018 at Calsonic Kansei Headquarters

27

IndexTop Commitment

Sustainable Value
Creation Process

What innovations are necessary for the CalsonicKansei Group?

Our Stance on
CSR

Main ideas that emerged from the workshop
Stakeholder
Engagement

In light of mega trends such as climate change, population aging, and urbanization, work with local
communities to develop the infrastructure (take charge of building, maintenance, etc. of car-sharing
infrastructure) for small, inexpensive, single-seater electric vehicles. Also, make cars that can be driven
perpetually, such as customizing four-seater cars into single-seater cars.
As well as actively working to introduce renewable energies, motivate the plants by tallying up their energy

Governanceemissions and giving commendations to those that improve the most.
Recover the heat generated in plant processes such as welding and use it for other services, to give back to
the community.

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
ReportingPutting Sustainability into PracticeLearnings from the workshop
Comments from the participants included that, through discussions of the beneﬁts for the company ofsustainable value creation and discussions from diﬀerent perspectives from their regular work, they gained atrue sense of the companyʼs expectations for the future and the value that will be expected of them when thetime to manage the company arrives.

28

IndexParticipantsʼ Comments

Top Commitment

Sustainable Value
Creation Process

Kana Saito

Takuro Kono

Equipment, Tooling and

Production and Logistics

Expense, Procurement

Management Group, Japan

Department,

Region Division

Global Purchasing
Division

Our Stance on
CSR

Stakeholder
Engagement

The workshop was a great opportunity to think

I gained a strong sense of the need to focus

about corporate management andnot only on industry mega-trends, but also on

sustainability by linking them together. It was

mega-trends in sustainability so we can comealso extremely interesting to hear the ideas ofup with innovations.

people from a variety of divisions that I do notnormally have much to do with.

GovernanceSocial Initiatives

Fumihiro
KanekoHikaruHirayanagi

CAE/MBEG, Global

Green Technology

Technology Division

Development Group,
Global Technology
Division

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

Before the workshop, the connections between

I work in product development, and I usually dobusiness and sustainability werenʼt visible tonot have much chance to think about the kinds

me, but the opportunity to encounter a variety

of sustainable mega-trends and the “trade-on”

of ideas at the workshop made me realize thatconcept that I learned about at the workshop,

there are seeds to sustainability to be found in

so I found it very inspiring. The actual

our regular work as well. I will now start

realization of the ideas that came out of thethinking about what kinds of seeds will beworkshop may be some time away, but byimportant.

keeping these kinds of perspectives in mind in
my regular work, I think I will make many
diﬀerent discoveries.

29

IndexTop Commitment

Sustainable Value
Creation Process

Kohei Kato

Yusuke Ito

Production Engineering

Human Resources Group,

Development Group,

Global Corporate

Production Engineering

Development Division

CenterIn the lecture, the expectation on companies to

The Calsonic Kansei group is in the midst of acome up with “problem-solving innovations”

transition as a company. I hope to make a

was mentioned. The question of how to decidecontribution that will enable each individualon problems or social issues for the company

employee to possess management

is an important one. I think that this will be ourperspectives and medium to long-term

greatest challenge.

perspectives in their everyday work.

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Noriyuki Omichi

Daichi Kiso

Exhaust Systems

CPM/Interiors Technology

Production Engineering

Development Group,Group,

CPM/Interiors Technology

Exhaust Systems Business

DivisionUnit

CSR Newsletters are sent regularly, but I had

There were times during the workshop when I

never really thought they had anything to do

got stuck and found it hard to come up with

with me. I hope to be more conscious of what

ideas, but I realized that this was because I

parts of my own work are contributing torarely think about the business from asustainability in the future. I also want to thinksustainability perspective or medium- to long-

about what I can do to make my work contributeterm perspectives in my everyday work. I ameven more to sustainability.

glad I realized this.

Key CSR
Indicators andResults

About Our
Reporting30

Juri Nagashima

Index

Our Stance on
CSR

Stakeholder
Engagement

Management & Warrant

Testing Fundamental

Group,

Technology Team

Global Technology Division

Top Commitment

Sustainable Value
Creation Process

Development Resource

SachikoIshikawa

I gained a renewed sense of how very

As a member of Team SKETT, I participate inimportant it is for a company to have a

traveling classrooms for third-graders. I think itʼssustainability viewpoint if it is to survive into thea shame that elementary school students donʼtfuture. I realized that, over the medium to longknow much about our company. For us to raise

term, we will be expected to be in a position of

our proﬁle around the world and establish ourproactively creating sustainability trends. The

strengths, every individual employee needs to

Calsonic Kansei Group is a Monozukuri

have stronger feelings toward the company. For

company, so there is a tendency to think about

this purpose as well, I hope that morebusiness in terms of how we respond to ourworkshops like this one are held on a regularcustomersʼ requests. However, I felt that webasis.

also needed to think about what kinds ofinnovations are needed in light of the megatrends.

Governance

Moeka Harada
Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

CSR/Public Relations & IR

Genta
KishimotoGroup,

Exhaust Systems

Corporate Planning

Strategy Department,

Division

Exhaust Systems
Business Unit

The image I had of sustainability was that is

Employees like me in our twenties and thirties

was an obligation and something that would

learned about various environmental issues atcost money to address. However, when I heard

school and in the media, so you could say thatin the lecture about how a company of a few

our generation has an extremely strong

dozen people, which had started up a newawareness of environmental protection. I would

business from the viewpoint of sustainability,

like us younger employees to take the lead ingrew into a company of about 15,000, I realized

coming up with ideas for rolling out businesses

that engaging in sustainability can also help thethat will reduce our environmental footprint.

company to grow and prosper.

31

Index

Miyu Okumura

Takahito Araki

1st Customer Group,

Design Group,

Global Sales Division

Global Technology
Division

Top Commitment

Sustainable Value
Creation Process

A variety of ideas came out of the workshop,

In our everyday work, I come up with concepts

regardless of whether they were achievable orfor future car interiors. I gained a renewed

not. I gained the sense that there are hints

awareness that I need to take mega-trends andabout the demands hidden in our daily work

corporate strategy into consideration in thoseand our everyday lives. Because I work in theundertakings.

sales department, I cannot develop or makeproducts directly myself, but being part of a
Our Stance on
CSR

division that is directly connected to ourcustomers, I plan to bring back the
expectations and requests of our stakeholders,organize them, think about how to realize them

Stakeholder
Engagement

within the company, and link them to action.

Shinpei
Matsushita

Governance

Environment & Energy
Control Group, Global
Production Division
Social Initiatives

I belong to a department that oversees the CK
Environmental
Initiatives

Groupʼs environment management, where we
promote mitigation of environmental burdens.
The CK Group has just commenced initiatives toreduce our CO2 emissions based on Science

Key CSR
Indicators andResults

Based Targets (SBT), as a way to address
global warming. In the workshop, I was able tohear some fresh ideas from people in otherdepartments, and I sensed the need to get more

About Our
Reportingpeople to understand our environmental
initiatives for the sake of our global mitigation
activities. To get people to understand the needfor environmental action, I think it would be goodto have more of these kinds of workshop
opportunities.

* The groups and divisions listed are as of the end of March, 2018.

32

IndexTop Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Expectations of Contributions to Improving
Sustainability Performance
After the workshop

Peter D. Pedersen
Executive Director, The Academy for Corporate/Collaborative/Creative Leadership (TACL) Corepresentative, NELIS - Next Leadersʼ Initiative for Sustainability & Network for Leadership andInnovation in Sustainability

Stakeholder
Engagement

The workshop produced many constructive ideas about what kind of initiatives the Calsonic Kansei Groupshould pursue from a sustainability perspective.
Governance

The participants seemed to have developed a new aﬃnity for the concept of “Sustainable Management,”
something that they had previously struggled to connect to their own day-to-day duties.
Going forward, I hope that the company will establish an environment for the workshop participants to put theideas that came out of the workshop into concrete action, and that the participants themselves will actively

Social Initiatives

network both within and outside the company. By doing this, I hope they will contribute to improving thesustainability of the entire automotive industry.

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting33

Index

Employee Awareness Survey
GlobalSystemTop Commitment

With the Calsonic Kansei Groupʼs addition to KKR in Fiscal 2017, a survey was conducted of all
global employees.
The aim of this survey was to ascertain how employees perceived strengths and weaknesses in

Sustainable Value
Creation Process

the corporate culture and the way work is progresses, to share with management any issues thathave arisen in the pursuit of the Medium-Term Business Plan, and to use their feedback to inform
approaches to improvements.
Each year, the Calsonic Kansei Group also conducts a survey to assess how well the CK WAY,

Our Stance on
CSR

the common action guideline for our employees, is being implemented. We use 64 multiple choicequestions to determine how well the values in the 10 areas pursued in the CK WAY are being
shared in the workplace, and to assess actual employee behavior. The results are used to develop
action plans aimed at further improvements.

Stakeholder
Engagement

Labor/Management Relations
GlobalSystemGovernance

Based on the stance that healthy labor-management relations are essential for corporate growth,
Calsonic Kansei and its Group companies in Japan have built stable labor-management relations
with the Calsonic Kansei Group Union Confederation (CKGU), to which their employees belong.
Social Initiatives

We strive to improve the working conditions of our employees and revise relevant systems throughregular opinion exchanges at labor-management roundtables and in the Work Style Improvement
Committee. As of the end of March 2018, 100% of our employees (excluding those in managerial
positions, re-hires, and non-regular workers) belong to the CKGU.

Environmental
Initiatives

Job reassignments are made from a long-term, human resources development viewpoint, after
considering the individual employeeʼs career path preferences that have been identiﬁed throughinterviews with the Human Resources Dept and the employeeʼs supervisor. At least three monthsʼ
notice is given before a job transfer to ensure a fair transfer process.

Key CSR
Indicators andResults

About Our
Reporting34

IndexParticipation in Outside Organizations and Other Initiatives

Top Commitment

Basic StanceIn order to help create a better society, the Calsonic Kansei Group is actively participating in crossSustainable Value
Creation Process

Our Stance on
CSR

industry initiatives and advanced initiatives being promoted through industry-government-academia
collaboration.

Main Organizations in which Calsonic Kansei Participates
Japan Auto Parts Industries Association (JAPIA) (Vice Chair)Society of Automotive Engineers of Japan (JSAE)
Keidanren (Member, Board of Councilors)

Stakeholder
Engagement

Japan Electronics and Information Technology Industries Association(JEITA)
Japan Institute of Industrial Engineering (JIIE)
Saitama Association of Corporate Executives (Standing Executive Secretary) International
Association for Universal Design (IAUD)

GovernanceIndustry-Government-Academia Projects
In Fiscal 2017, Calsonic Kansei participated in 39 industry-academia collaborative researchSocial Initiatives

initiatives.

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting35

IndexGovernance

Top Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Corporate Governance
Stakeholder
Engagement

Compliance
Risk Management

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting36

IndexGovernanceCorporate Governance
Top Commitment

Sustainable Value
Creation Process

Basic Policies of Corporate Governance

Changes to corporate governance structure to speed up
decision-making

Our Stance on
CSR

GlobalSystemStakeholder
Engagement

On May 8, 2017, Calsonic Kansei delisted from the First Section of the Tokyo Stock Exchange.
With the objective of realizing speedier decision-making by Calsonic Kansei Corporation, CalsonicKansei established a corporate governance structure consisting of a Board of Directors, with three
directors who concurrently serve as executive oﬃcers, and one auditor.

GovernanceAlso, in terms of Calsonic Kanseiʼs relationship with its controlling shareholder, as a wholly-owned
subsidiary of CK Holdings (CKH), an entity wholly owned by Kohlberg Kravis Roberts (KKR),
Calsonic Kansei is working to increase the diversity of its Board of Directors membership, under thesupervision of the CKH Board of Directors.

Social Initiatives

The auditor monitors the performance of Directors in carrying out their duties, and also works withthe auditors of CKH to audit the execution of business related to all aspects of the Groupʼsmanagement. In addition, outside auditors conduct accounting audits, in which they verify theappropriateness and legal compliance of accounts and of internal controls related to the accounts

Environmental
Initiatives

from an independent standpoint.
The current structure has been chosen because we believe these measures will ensure theeﬀectiveness of our corporate governance.

Key CSR
Indicators andResults

About Our
Reporting37

IndexCorporate Governance Structure

Top Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Construction of Internal Control System
GlobalKey CSR
Indicators andResults

SystemFor our internal control systems, to establish a structure that will ensure appropriate business
operations, we have established the Calsonic Kansei Basic Policy on Internal Control, alongwith related company rules and regulations such as the Calsonic Kansei Code of Conduct

About Our
Reporting(Japan version), Regulations for Meetings of the Board of Directors, Regulations on Safety and
Health Management, and Regulations for Management of Insider Trading Prevention. We
ensure that our board members and employees are thoroughly familiar with these rules andregulations and that the performance of their duties fulﬁlls our companyʼs social responsibilities.
Additionally, to ensure proper business operations within the Calsonic Kansei Group, we reporton certain important issues, carry out discussions, and make decisions based on the clear andtransparent Rules of Delegation of Authority established at the global level. These reports,
discussions, and decisions are made in committees such as the Global Executive Committee(GEC)*, which consists of company oﬃcers and managers of group subsidiaries.

38

Committees Responsible for Internal Control
Index

GlobalSystemThe Calsonic Kansei Group has established various types of committees, led by company
Top Commitment

executives, based on both environmental and social aspects. Each committee deliberates onpolicies and measures related to risk management, and, in addition to reporting to the executive
responsible, regularly submits reports to the Board of Directors through the Internal Control & Risk

Sustainable Value
Creation Process

Management Committee.
By working closely with these committees, we aim to solidify and further enhance our CSR
activities.
In Fiscal 2017, there were no legal violations with respect to the environment, labor, bribery,

Our Stance on
CSR

information security, product safety, or exports. As such, Calsonic Kansei was not subject to any
sanctions such as ﬁnes.
On May 8, 2017, due to a tender oﬀer made for the company, Calsonic Kansei delisted from theFirst Section of the Tokyo Stock Exchange. Nevertheless, we will continue to work toward

Stakeholder
Engagement

appropriate organizational governance and information disclosure under our CSR policy.

Committee

Governance

Reports to the Board of
Directors

Internal Control & Risk
Management Committee

Executive Vice President, Global Corporate
Development Division

Compliance Committee

Executive Vice President, Global Corporate
Development Division

CK-DOA Committee

Twice a year (joint
report)Social Initiatives

Executive Vice President, Corporate Planning
Division

Environmental Management
Meeting

Executive Vice President, Global Production
Division

J-SOX Steering Committee

Senior Vice President, Global Finance Division

Environmental
Initiatives

Key CSR
Indicators andResults

Title and division of responsible director＊As of March 31, 2018

Establishment of Systems to Ensure Proper and Legitimate Business Activities(Basic Principles and Systems of CK’s Internal Control)

About Our
Reporting39

GovernanceIndex

Compliance

Top Commitment

Basic Stance
GlobalSustainable Value
Creation Process

PolicyIn the pursuit of the smooth operation of its business, the Calsonic Kansei Group recognizes theimportance of all employees practicing compliance, based on a strong sense of ethics.
The Calsonic Kansei Global Code of Conduct was established in 2003 (and revised in 2018) toOur Stance on
CSR

strengthen the global compliance structure. This Code serves as a shared code of conduct thatdeﬁnes proper behavior for employees around the world, and it applies to the entire CalsonicKansei Group.

Stakeholder
Engagement

Compliance Promotion System
GlobalGovernance

SystemThe Calsonic Kansei Group has established Compliance Committees and assigned executives
and staﬀ members responsible for compliance at each business location and region around theworld to promote compliance, and is working to spread and foster an awareness of compliance.

Social Initiatives

Global Compliance Structure
Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting40

Global Code of Conduct for Calsonic Kansei GroupIndex

Top Commitment

Spreading Awareness of Compliance
Sustainable Value
Creation Process

Periodic Monitoring
GlobalOur Stance on
CSR

SystemThe Calsonic Kansei Group periodically monitors the major compliance activities of its regions
and business locations around the world under the compliance program, which consists of seven

Stakeholder
Engagement

elements. The outcomes of this monitoring are reported to the Global Compliance Committee toassist in further process improvements.
Compliance Program

Governance

1. Standards and procedures
2. Organizational structures
3. Education and training
4. Monitoring and auditing (including compliance penetration surveys)

Social Initiatives

5. Incentive and discipline
6. Reporting and investigating
7. Response and prevention (management of compliance risks such as anti-bribery and anti-trust)Environmental
Initiatives

Compliance Education and AwarenessGlobalKey CSR
Indicators andResults

SystemEvery year, the Calsonic Kansei Group conducts training on the Code of Conduct, which has been
prepared in the respective languages of each region, and collects pledges in order to strengthenawareness about compliance. In Fiscal 2017, 100% of our employees in Japan and overseas,

About Our
Reportingincluding corporate executives, signed pledges.
As part of our education on the Code of Conduct, we also provide education as necessary on the
global risks of anti-trust law and anti-bribery law. For these risks, we have established basic
policies and rules regarding these two risks – global (group-wide), for our Japanese locations, andfor our overseas locations, and conducted communication and awareness-raising activities acrossthe entire Group. In Fiscal 2017, in addition to total-participation education programs, we also
conducted anti-trust law training for our executives in Japan. We also conducted targeted training
globally on anti-bribery law and anti-trust law for the relevant departments in Japan, North America,
Europe, China and Asia in a drive to increase awareness of the basic rules and policies among
relevant employees (regular employees only). The breakdown by region of the participants in theanti-bribery law targeted training targeted at relevant departments is as follows.

41IndexRegion/Country

Anti-bribery law targeted training

Japan

4,863

Americas362

Europe

107

China

99

Thailand67

Malaysia

373

Top Commitment

Sustainable Value
Creation Process

Total

5,871

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Anti-trust law training for executive members in Japan

In Japan, with the roll-out of the Calsonic Kansei CSR Guidelines for Suppliers, we have asked
Environmental
Initiatives

our suppliers to be thorough in their communication of compliance, including the prevention ofbribery. We are also making eﬀorts to ascertain the state of approaches to key CSR issues
established by the Calsonic Kansei Group by conducting CSR due diligence surveys.

Key CSR
Indicators andResults

Promotion of Socially Responsible Procurement
About Our
Reporting42

Internal Whistleblowing System
Index

GlobalSystemThe Calsonic Kansei Group has introduced a Group-wide internal whistleblowing system to ensure thatTop Commitment

each and every employee understands and implements compliance and is able to conﬁrm whether
corporate activities are being conducted properly.
We have developed a framework that enables employees to directly communicate opinions, questions,and requests to the company. This is helpful not only in terms of improving operations and the workplace,

Sustainable Value
Creation Process

but also in terms of creating a corporate culture that complies with corporate ethics.
This framework also incorporates the concept of whistleblower protection in accordance with theWhistleblower Protection Act that came into eﬀect in April 2006, in accordance with which it operates anexternal CK Helpline to serve as the contact point in Japan. The CK Helpline accepts reports both online

Our Stance on
CSR

and over the phone and allows employees to make reports using either their actual name oranonymously. An experienced person from a third-party organization receives the reports while protecting
the privacy of the whistleblower, and then contacts the related department or organization so that theappropriate response can be taken.

Stakeholder
Engagement

In each region and business location around the world, we have also established and run internal
whistleblowing systems that are optimized for each company while giving consideration to the culture andlaws of each country. In the Americas and Europe, we have established hotlines as external contact
points that accept reports 24 hours a day. We will also look into the establishment of an external contact

Governancepoint in Asia going forward. From the perspective of whistleblower protection, we respond to any reports
received with caution to ensure that whistleblowers do not suﬀer any disadvantages. In Fiscal 2016, inaddition to employees, we established a whistleblowing contact point for suppliers in each of our global
regions. As with reports from employees, any reports received from suppliers will be dealt with inSocial Initiatives

conﬁdence to protect the privacy of the whistleblowers, to ensure that they are not disadvantaged.
In the event of behavior in a workplace that could be suspected of constituting a human rights violation,
the company must be prompt in understanding the situation and taking an appropriate response. The
Calsonic Kansei Group believes that respect for human rights and the prevention of human rights

Environmental
Initiatives

violations are important to the employee whistle blowing systemʼs interview process. Conﬁdentiality isstrictly adhered to in the running of the system, including the privacy of the person seeking advice, toensure that the whistleblower does not suﬀer any disadvantages.
In Fiscal 2017, 347 whistleblowing cases were recorded across the entire Group. All cases were

Key CSR
Indicators andResultssatisfactorily dealt with and improvements made to the system, in consultation with the relevant
departments.

Number of Whistleblowing Cases
About Our
Reporting2015

309 cases2016

312 cases
43

2017

347 casesIndexExport Control (Security Trade Control)
GlobalSystemTop Commitment

The Calsonic Kansei Group has established the Export Control Committee, led by the CEO, tocomply with Export Trade Control Orders and Foreign Exchange Orders under the Foreign
Exchange and Foreign Trade Act. This committee also implements appropriate export control ofgoods, technologies and other matters with the potential to be diverted into weapons and military

Sustainable Value
Creation Processuse. It consists of members of each division involved with exports, and its tasks include control ofthe export of parts, equipment and measuring instruments, control of the transfer of technologies
and engineering diagrams, acquiring information on new laws and regulations, and training of
employees. Overseas, personnel responsible for exports at each business location conduct proper

Our Stance on
CSR

management in cooperation with corporate headquarters to comply with the export control
regulations of each respective country.
There were no violations of such regulations in Japan or overseas during Fiscal 2017.

Stakeholder
Engagement

Export Control System

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
ReportingCalsonic Kanseiʼs Global Anti-Corruption Policy

44

GovernanceIndex

Risk Management

Top Commitment

Basic Stance

Sustainable Value
Creation Process

GlobalSystemThe Calsonic Kansei Group has established the Internal Control & Risk Management Committee
in response to the global expansion of our business and the diversiﬁcation of risk. This committee

Our Stance on
CSR

is composed of Global Executive Committee (GEC) members, with the Executive Vice President
serving as Chairman. The PDCA cycle for risk management activities, which includes theidentiﬁcation of major risks and the development of response plans, is then implemented by the
executives responsible for each business unit, functional division, and region.

Stakeholder
Engagement

Governance

Promotion System

Social Initiatives

GlobalSystemThe Internal Control & Risk Management Committee globally oversees four product business

Environmental
Initiatives

units, eight functional divisions, and ﬁve regions, and strives to conduct proper risk management
by engaging in activities that reduce or eliminate risks.

Key CSR
Indicators andResults

About Our
Reporting45

IndexInternal Control & Risk Management Promotion System

Top Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Activities of the Internal Control & Risk Management Committee
Each year, the Calsonic Kansei Group assesses the frequency and severity of potential risks,
including natural disasters and ﬁnancial and product risks, to identify major risks for both the entire
Group and the individual divisions. We work to reduce or eliminate risks through these activities,

Environmental
Initiatives

and strive to use them as opportunities to expand our business by ensuring an appropriate risk
level.
In Fiscal 2017, the Internal Control & Risk Management Committee identiﬁed a total of ﬁve issues

Key CSR
Indicators andResults

as potential major risks for the entire Group, namely, large-scale disasters, production continuity(supply risk), quality, Chinaʼs VOC restrictions*, and the appropriate responses to the
Subcontractor Act. The Committee then formulated measures based on each action plan, andevaluated the implementation status and results of these measures.
In each region, in addition to taking steps to address such corporate major risks common to the

About Our
Reportingentire Group worldwide, the Committee identiﬁed risks unique to each region, formulated activity
plans, and evaluated the results of the measures taken.
When a risk does materialize, the Committee will continue working to take swift and appropriate
action.
* Chinaʼs VOC regulations: Restrictions in China on emissions of volatile organic compounds (VOC) inside vehicle cabins46

IndexTop Commitment

BCP Preparation

GlobalSystemAs part of its business continuity planning (BCP), the Calsonic Kansei Group has established theSustainable Value
Creation Process

Disaster Management Regulations, in preparation for disasters such as earthquakes andtyphoons. Based on these regulations, we have also developed the Company-Wide Disaster
Prevention Manual, which is an action guide for employees to follow.
In the event of a disaster that could interfere with production continuity in the Group, the Central

Our Stance on
CSR

Disaster Task Force will be activated in Group Headquarters. To deal with possible interruptions topower transmission, the Central Disaster Task Force is equipped with emergency power
generators, along with multiple means of communication, including satellite phones.
This Central Disaster Task Force has been called into action on two occasions to date -the Great

Stakeholder
Engagement

East Japan Earthquake and the major ﬂooding event in Thailand. In both of these cases, it wasable to secure the safety of employees and achieve rapid recovery of production.
Furthermore, in preparation for a large-scale major earthquake disaster over a wide area,
earthquake early warning systems have been installed in all Group facilities in Japan. Emergency

Governancepower generators have also been installed in manufacturing locations where there is the possibilityof ﬁre, so that ﬁre-ﬁghting measures can be conducted at any time.
Additionally, at the Calsonic Kansei R&D Center and Headquarters, the main building has aseismically isolated structure that will enable it to serve as a temporary shelter for people who areunable to return home following a disaster.

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting47

Index

Basic Response in the Event of a Major Earthquake

Top Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting48

IndexDisaster Prevention Structure

Top Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

BCP Preparation Initial ﬁre-ﬁghting
training

Basic ﬁrst aid training

About Our
Reporting49

IndexInformation Security

Top Commitment

Basic Stance
GlobalSustainable Value
Creation Process

PolicyThe Calsonic Kansei Group shares its Information Security Policy on a global level, while the
Global Information Security Committee implements the required measures as and when needed to

Our Stance on
CSR

strengthen information security, referencing matters such as incidents of information leaks bothwithin and outside the Group. We also conduct an ongoing annual in-house education program in
an eﬀort to spread awareness of and instill information security.
To ensure that the personal information of employees, suppliers, and other parties is adequately

Stakeholder
Engagement

protected, we have set up a management structure based on laws, related government ordinances,and other guidelines, etc., concerning the protection of personal information, and established
Personal Information Management Regulations that stipulate rules and procedures. Personal
information is thoroughly managed throughout the entire company in accordance with theseregulations.

Governance

Information Security Management Structure
Social Initiatives

GlobalSystemIn order to address information security as a management issue at Calsonic Kansei, we have

Environmental
Initiatives

established an information security management structure with the vice president responsible forthe information systems department serving as the Chief Information Oﬃcer (CIO).
The CIO holds regular meetings of the Global Information Security Committee, to hold the

Key CSR
Indicators andResults

necessary discussions for ensuring the proper implementation of information security for the entire
Group. A Secretariat, comprising personnel from the information systems, general aﬀairs, andhuman resources departments, has been established to serve as a dedicated information security
division and to assist the CIO.
In addition, the CIO plans and implements measures to ensure that internal regulations related to

About Our
Reportinginformation security run smoothly and eﬃciently.
At major overseas Group companies, we have established Regional Information Security
Committees and have introduced management structures equivalent to those at Calsonic Kansei.
These structures have full responsibility for information security at each company.

50

IndexGlobal Information Security Management Structure

Top Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting51

IndexInformation Security Education and Awareness-Raising
GlobalSystemTop Commitment

A high level of awareness regarding proper information management by every employee isessential for information security compliance, so we are working to strengthen awareness ofcompliance. In addition to implementing security measures such as the management of digital

Sustainable Value
Creation Processdata access rights and restrictions on the use of external storage media, we are also conducting
activities to raise awareness among employees.
Education and Awareness Activities

Our Stance on
CSR

Initiatives

Details
Clariﬁcation of access rights through conﬁdentiality classiﬁcations

Security measures

Restrictions on writing data onto external storage media
Anti-virus measures and hard-disk encryption

Stakeholder
Engagement
Communication of awareness-raising messages by the responsible executives
Employee awarenessraising activities

Implementation of new employee education and regular employee education
programs
Assessment

Governance

Results of Employee Education
FY2015Social Initiatives

FY2016Rate of participation in
education activities

99%

FY2017100%

100%

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

Activity Report

Disaster Response Activities
Japan
Activities
Calsonic Kansei introduced a safety conﬁrmation system in Fiscal 2014 and conducts safety
training based on annual safety training plans. These measures have been gradually introduced at
Group facilities in Japan since Fiscal 2015.
In October 2015, we installed a groundwater membrane ﬁltration system at the Calsonic Kansei
R&D Center and Headquarters to provide safe drinking water to employees who are unable to gohome following a disaster, as well as nearby residents. This system can still provide drinking water
even if the public water supply system is disrupted.

52

IndexTop Commitment

Groundwater membrane
ﬁltration system

Bags for supplying
water to neighboring
residents

Some of the emergency
food stockpile

Sustainable Value
Creation Process

Our Stance on
CSR

General training with local ﬁreﬁghting
agencies

Mock earthquake experience using anearthquake simulation truck

Stakeholder
Engagement

Installing Groundwater Membrane Filtration System
Governance

Information Security Activities in Fiscal 2017
GlobalSocial Initiatives

Activities
The Global Security Committee met twice and the Japan Region Information Security Committee
met four times in Fiscal 2017 to deploy new measures related to improving information security

Environmental
Initiatives

and to share information on the status of audits.
Security measures: internal audit conducted on information leak risks
Employee awareness-raising activities: employee education provided with globally standardized

Key CSR
Indicators andResults

content“Security Week” held with the aim of improving knowledge and awareness of security among all
employees on a global level
Distribution of messages from the CEO and the executives to raise awareness Messages postedon the company intranet and displayed on wall posters to improve awareness of security

About Our
Reporting53

IndexSocial Initiatives

Top Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

For a Safe, Reliable, and Comfortable Automotive
Lifestyle
Together with our Business Partners
Quality Management

Governance

Creating Social Values through Innovations

Respecting Human Rights
Social Initiatives

Creating an organization in which employees canparticipate actively
Protecting the Health and Safety of our Employees

Environmental
Initiatives

Creating an Organization that Values the Individual and Diversity
Fair Treatment and Evaluation
Human Resources Development to Expand Individual Capabilities

Key CSR
Indicators andResults

Promotion of Diversity
Promotion of Work-Life Balance
Employee Data

About Our
ReportingSocial Contribution Activities

54

For a Safe, Reliable, and Comfortable Automotive Lifestyle
Index

Together with our Business
Partners

Top Commitment

Basic Stance
Sustainable Value
Creation Process

GlobalPolicyOur Stance on
CSR

The Calsonic Kansei Group considers its suppliers as equal partners, and aims for mutual
sustainable growth while maintaining equal and fair relationships based on mutual trust. As supply
chains expand globally in line with the globalization of the Calsonic Kansei Groupʼs business, weare aiming to improve our CSR management by sharing our ideas and policies with our suppliers,

Stakeholder
Engagement

both in Japan and overseas, in order to promote our CSR activities.
Particularly in the case of overseas suppliers, we share our CSR policies and actively promotelocal procurement to generate employment opportunities. (Ref: FY2017 local procurement rate:
Approx. 80%)

Governance

There were no material changes to the location or structure of major suppliers of the CalsonicKansei Group in Fiscal 2017.

Social Initiatives

Promotion of Socially Responsible Procurement
Environmental
Initiatives

GlobalKey CSR
Indicators andResults

System/Activities
The Calsonic Kansei Group is committed to transparent, fair, and impartial business processes
when selecting suppliers. Providing opportunities for broad participation, regardless of nationality,
company size, and trading track record, Calsonic Kansei reviews the details of proposals from

About Our
Reportingsuppliers across the relevant departments when making selections.
In actual trading as well, we comply with the Global Code of Conduct for the Calsonic KanseiGroup to maintain the performance of equal and fair work of a high standard. We hold brieﬁng
sessions on the Groupʼs policies and regular liaison meetings in which we communicate with
suppliers through supplier surveys and exchanges of opinion. As an approach toward legal
compliance, we work to raise awareness of matters to keep in mind regarding the Act against
Delay in Payment of Subcontract Proceeds, etc. to Subcontractors (Subcontract Act) and the
Antimonopoly Act, as well as holding CSR brieﬁngs for our suppliers.
In Fiscal 2017, we rolled out a revised version of the CSR Guidelines for Suppliers

55

(Japanese and English), which includes the additional requirements regarding the handling of
conﬂict minerals. These Guidelines were sent to 364 companies and we entered into a
Index“Conﬁrmation of Agreement” with them.
We also conducted a Supplier Due Diligence Survey, which comprised 80 questions in sevencategories, of 225 companies in Fiscal 2017. After analyzing the ﬁndings obtained from thissurvey, we clariﬁed the areas that we wanted the suppliers to strengthen and enhance when we

Top Commitment

provided feedback to the suppliers that cooperated in the survey. We also surveyed 64 suppliersin Japan, 16 in Thailand, and 13 in Mexico about whether or not they have an anti-bribery policy.
Going forward, we will request our suppliersʼ continued cooperation with our CSR initiatives.

Sustainable Value
Creation Process

Our Stance on
CSR

Compliance Education and AwarenessCalsonic Kansei CSR Guidelines for Suppliers
Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting56

IndexEnvironmental Monitoring of Suppliers
Sun Qingqing
Purchasing Department
Calsonic Kansei China Holding Company

Top Commitment

Sustainable Value
Creation Process

At Calsonic Kansei China Holding Company (CKC), in addition to activities in our own company tomitigate our own environmental burden, in recent years, we have extended the scope of these
activities to our suppliers, in the pursuit of the environmental management of our entire supply
chain.

Our Stance on
CSR

In the Purchasing Department, in Fiscal 2017, we commenced regular environmental monitoring of
our supplierʼs production plants.
We rotate the PDCA cycle on an annual basis and we have conﬁrmed that the plants have obtained
the required approvals related to environmental protection mandated by the Chinese government.

Stakeholder
Engagement

Chinaʼs environmental regulations are becoming stricter by the year, and there have even beencases of companies that have violated those regulations having their operations suspended. This
monitoring initiative not only raises environmental awareness within CKC, it also helps to ensurestable supply of products.

Governance

Sharing Our CSR Vision with Suppliers

Social Initiatives

Chalavalai Wutthikornkriengkrai
Vice President
Organization Promotion Division CalsonicKansei (Thailand) Co., Limited

Environmental
Initiatives

Calsonic Kansei (Thailand) Co., Limited is strengthening its ties with its suppliers through its annual
supplier meetings.
Key CSR
Indicators andResults

For the further pursuit of solutions to social issues through business, collaboration with our
suppliers is essential. Based on that thinking, at the supplier meeting for Fiscal 2017, we conveyed
the Calsonic Kansei Groupʼs thinking on CSR and discussed CSR trends. Looking ahead, we planto pursue concrete collaborative actions through our sales, purchasing, and other business

About Our
Reportingdivisions. To raise motivation, we are considering establishing an awards scheme for suppliers that
pursue particularly striking activities.

57Index

Cooperation with Suppliers on CO2 ReductionJapan

Top Commitment

Activities
In order to strengthen the Monozukuri capabilities of our suppliers and our relationships of trust
Sustainable Value
Creation Processwith them, the Purchasing Department conducts supplier support activities. In these activities, withthe agreement of the suppliers, we are introducing the Calsonic Kansei Production System (CKPS)
for workplace improvements. By presenting successful examples as case studies to suppliers
through exhibitions and other opportunities, we believe we can revitalize workplace improvements

Our Stance on
CSRat our other suppliers.
One particular example of environmental protection activities is the quantiﬁcation and visualizationof the CO2 reduction eﬀects of workplace improvements, which began in 2013. In Fiscal 2017,
improvement activities conducted at two suppliers resulted in CO2 reductions of approximately 28

Stakeholder
Engagement

tonnes.
We intend to continue with these environmental protection activities with our suppliers in Fiscal
2018.

Governance

Response to Conﬂict Minerals
Social Initiatives

Japan
Environmental
Initiatives

PolicyIn recent years, against a background of the increasingly borderless nature of the economy, there
have been growing calls for companies to establish systems for respecting human rights that

Key CSR
Indicators andResults

cover their entire supply chain. In response to these social demands, Calsonic Kansei and its
Group companies in Japan formulated a “Policy for Addressing Conﬂict Minerals” from theperspective of limiting human rights violations in conﬂict regions, and began addressing this issue
in line with that policy, including the implementation of surveys of its suppliers in 2012.

About Our
Reporting

Action against Conﬂict Minerals

58IndexSupply Chain Survey in Response to Conﬂict Materials
GlobalActivities

Top Commitment

In August 2012, the United States enacted detailed legislation that requires the reporting of the useof four minerals mined from the Democratic Republic of Congo and the surrounding conﬂict regionsthat are potentially being used to fund armed groups. Fully endorsing the intent of this legislation,

Sustainable Value
Creation Process

the Calsonic Kansei Group decided on a policy of investigating the use of conﬂict minerals in the
supply chain from a CSR perspective and to conduct activities to stop the use of these minerals.
We will continue to monitor legislative developments and social expectations and engage in our
response to this issue into the future.

Our Stance on
CSR

2012: Preliminary survey of suppliers conducted (rolled out to 40 companies) 2013:
Full survey rolled out to 224 companies
2014: rolled out to 288 companies

Stakeholder
Engagement

2015: rolled out to 285 companies
2016: rolled out to 284 companies. Response rate 83%
2017: rolled out to 211 companies. Response rate 99%

Governance

Promoting Calsonic Kansei Green Procurement
Social Initiatives

GlobalPolicyEnvironmental
Initiatives

The Calsonic Kansei Group procures various items such as raw materials, supplementary materials
and component parts, and believes that the management of those procured goods is important forthe control of environmentally hazardous substances.
In accordance with the Calsonic Kansei Group Environmental Policy, in 2008 we issued the

Key CSR
Indicators andResults

Calsonic Kansei Green Purchasing Guidelines (partially revised in October 2014) as the standard
for environmental activities among suppliers. In addition to requesting their cooperation in not using
hazardous substances, we also worked together with our suppliers to conduct surveys ofcomponent substances of purchased goods, to verify their compliance with the International

About Our
ReportingMaterial Data System (IMDS) and the Safety Data Sheet (SDS), etc.
In 2017, we once again achieved a 100% rate of signed agreements regarding the Green
Purchasing Standards obtained at the opening of new accounts.
Further, we investigate whether our suppliers have acquired IATF 16949 or any equivalentcertiﬁcation for their environmental management systems, to work on improving our control ofenvironmentally hazardous substances.

59

IndexBusiness Continuity Planning (BCP) for the Entire
Chain in Preparation for Emergencies

Top Commitment

GlobalActivities
Sustainable Value
Creation Process

With 80 production sites in 15 countries manufacturing numerous automotive components, theCalsonic Kansei Group believes that the task of ensuring the supply chain amid production
recovery operations will take on immense importance. To achieve this, we have established a BCP
Procedure. In the event of an emergency, (1) a Central Disaster-Readiness Response

Our Stance on
CSR

Headquarters will be launched, (2) aﬀected components will be identiﬁed, (3) products for delivery
to customers will be identiﬁed, (4) information regarding inventory and requirements will be centrally
managed; (5) alternative products will be considered and change plans developed, (6) approval
procedures for changes to processes will be sought and obtained; and (7) delivery deadlines for

Stakeholder
Engagement

products to customers will be adjusted. In addition, even in normal times, for certain electronicparts, we are using a “multi-fab” system, in which we order the same part from multiple plants. We
have also begun preliminary consideration of the following ﬁve matters.

Governance

1) Automation of bundling of product information between the customer, supplier, and CK.
2) Checking the status of business continuity planning (BCP) at suppliers, including overseas
plants3) Securing electronic parts, demand for which is growing4) Multi-sourcing of electronic components that have the same features

Social Initiatives5) Responses to a large-scale disaster, which is forecast to happen in the future

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting60IndexBCP Procedure

Top Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Monozukuri Improvement Activities in Cooperation with
Business Partners
Environmental
Initiatives

GlobalSystemKey CSR
Indicators andResults

In FY2009, Calsonic Kansei and its Group companies in Japan established a dedicated SupplierSupport Team (SST) within the Calsonic Kansei Purchasing Department. The aims of this team are tostrengthen the Monozukuri characteristics of our suppliers and enhance our working relationships
with them. With the suppliersʼ consent, the SST pursues joint activities for workplace improvements
through the Calsonic Kansei Production System (CKPS). Also, with the consent of our suppliers, we

About Our
Reportingshare examples of improvements with other suppliers through events and exhibitions. In this way, weare creating an environment in which we can expect further energization of this initiative going
forward. We conducted activities with four suppliers in Fiscal 2017.
In Fiscal 2013, we began a program of calculating the level of our suppliersʼ contributions to theenvironment. We do this by measuring the reductions in CO2 emissions that result from theirimprovements in response to environmental issues, an area of growing concern, as a means ofquantitatively conﬁrming the eﬀectiveness of those improvements. By clarifying the link between
improvement activities and environmental footprint, we are seeking to improve awareness ofenvironmental issues among our suppliers while promoting joint activities to expand their scope.

61

IndexSupplier Awards Scheme
Top Commitment

GlobalActivities

Sustainable Value
Creation Process

Every year, we select and award suppliers that have contributed to the development of thebusiness of Calsonic Kansei and its Group companies in Japan.
Based on the selection criteria decided on by the Calsonic Kansei Group, the Quality Division
selected three suppliers for Japan Region Outstanding Supplier Awards, three companies for

Our Stance on
CSR

Japan Region Quality Improvement Awards, and three companies for Global Quality Improvement
Awards, based on their performances in Fiscal 2017.
The Purchasing Division also commends other outstanding suppliers, presenting the Global
Monozukuri Award to three companies in Fiscal 2017. We will continue to present awards to

Stakeholder
Engagement

outstanding suppliers in this manner into the future.

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting62

For a Safe, Reliable, and Comfortable Automotive Lifestyle
Index

Quality Management

Top Commitment

Basic Stance

Sustainable Value
Creation Process

GlobalPolicyThe Calsonic Kansei Group is focused on quality as an essential element required to meet the
expectations of various customers, from improving performance to ensuring safety and reliability

Our Stance on
CSR

and achieving comfort. Based on this approach, we consider quality to be one of the mostimportant issues for the company as a whole, and we aim to contribute to society and be acompany that is trusted by its customers, by continuing to provide high quality in all processes,
including sales and purchasing, development and design, production, and logistics.

Stakeholder
Engagement

Quality Vision
Realize the world No.1 quality to satisfy our customers.
GovernanceSocial Initiatives

Quality Management Structure
Environmental
Initiatives

GlobalSystemIn order to realize the world No.1 quality to satisfy customers, the Calsonic Kansei Groupʼs product

Key CSR
Indicators andResultsbusiness units, manufacturing sites (regions), and global functions work together towards Monozukuri
innovation. Because human resource development and teamwork are the foundations of Monozukuri
innovation, values related to human resource development and cross-function and cross-region
initiatives are shared globally as the CK Way.

About Our
ReportingSpeciﬁcally, in addition to collaboration between the global functions and individual businessdivisions, we have optimal quality assurance formation for each country /region and business. Thesesystems are implemented through regular meetings with our production locations around the world.
Also, based on our own original quality management system (CK-QMS), we have built a global quality
assurance system that is standard across the entire Group, including all aﬃliated companies in Japanand overseas, and we are working to further improve quality and increase cost competitiveness.
Based on CK-QMS, we monitor Monozukuri activities and implement corrective action and horizontal
deployment across the Group to achieve performance of the highest standard.
We are promoting global activities in the pursuit of customer satisfaction and “zero” quality risks.
Further, we are engaged in the continuous improvement of the CK-QMS and we are working tocultivate Global CKʼs quality management competencies both in the organization and its people.

63IndexTop Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Global Evaluation Standard for Quality Management

GlobalSystemTo achieve our basic quality policy on a global level, the Calsonic Kansei Group has established its

Key CSR
Indicators andResults

own Quality System Evaluation System (QSES). This system is used to conduct evaluations of thequality systems and process management of the entire company and our suppliers.
Through evaluation, we identify problems, and by implementing corrective action andimprovements repeatedly, we constantly maintain even higher standards of management, whichleads to improve customer satisfaction.

About Our
ReportingIn addition, through the development and expansion of QSES auditors (global masters, region
masters, and auditors) on a global level, we are working to reduce inconsistencies between
evaluations in all plants and to promote the understanding of actual conditions and workplace
improvement activities.

64IndexTop Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

Governance

Quality Education and AwarenessGlobalSocial Initiatives

Environmental
Initiatives

SystemQ-Forum
We hold the Q-Forum annually as part of our quality awareness activities. We also organize avariety of events, such as presentations of activities to prevent recurrence of quality defects and

Key CSR
Indicators andResults

displays of actual defective items, presentations of quality improvement, and supplier quality
seminars, to encourage each and every individual to reﬂect on their awareness and actions
regarding quality and to make new discoveries. Through this, we aim to raise the standard of
quality awareness and actions, thereby driving improvements in quality.

About Our
Reporting

QC Circle Global Convention
The individual companies in the CK Group conduct QC Circle activities around the world,
promoting quality improvement activities at workplace (Genba) and fostering human resource
development through those activities.
Best practice presentations of quality improvements are given at annual QC circle global
conventions held at our headquarters, to encourage friendly competition between regions andto raise motivation for further improvement of Monozukuri quality.

65Index

Initiatives to Improve R&D Quality
Top Commitment

GlobalSustainable Value
Creation Process

SystemCertiﬁcation for Quality Management Standard IATF 16949
Our Stance on
CSR

The Calsonic Kansei Group has completed certiﬁcation under ISO/TS 16949, the international
quality management standard for the automotive industry, at all of its sites. Currently, we arepromoting the application of the new standard, IATF 16949, which has new, additional standards
for product safety and development of products with embedded software, in our quality

Stakeholder
Engagement

management system, as well as activities aimed at obtaining certiﬁcation for all global locations. In
Fiscal 2017, we obtained certiﬁcation for 16 sites, and we are scheduled to complete certiﬁcationof all sites by September 2018. The Calsonic Kansei Group also works to improve technologicalstrengths in evaluation, which underpins our development quality.

GovernanceTo ensure appropriate quality, we have replicated the global market environments through state-ofthe art equipment and experimental evaluation technologies in the technical ﬁelds of safety,
environment and comfort from the customerʼs perspective. In this way, we ensure a high level ofdevelopment quality in the four stages of vehicles, systems, components, and elements/materials.

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

Development Quality Assurance on Four Levels

66IndexExperimental evaluation technologies that underpin development
quality

Top Commitment

Safety/Durability

Environment

Comfort

EMC anechoic chamber(vehicle & Units)

Exhaust gas emission andfuel consumption evaluation

Air conditioning
performance evaluation

Complex thermal shock
evaluation

Inverter performance
evaluation

Squeak & Rattle noise
evaluation

Safety performance
evaluation

Multi-axial vibration
simulator

Air conditioner systemevaluation

Compressor durability
evaluation

EGR cooler performance
evaluation

Silent air supply system

High-temperature thermal
durability evaluation

3D scanning vibrometer

PIV system

Sustainable Value
Creation Process

VehiclesOur Stance on
CSR

Stakeholder
Engagement

Systems
GovernanceSocial Initiatives

Environmental
Initiatives

Components
Key CSR
Indicators andResults

About Our
Reporting67IndexElement/Material Evaluation/Analysis

Top Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

X-ray CT scanner

VOC evaluation

Scanning acoustic
tomography (SAT)

Field emission electronprobe microanalyzer

Electron microscopeHigh temperatureobservation equipment

Elements/
Materials

Stakeholder
Engagement

Implementation of Novelty and Materiality Assessments
The Calsonic Kansei Group reveals risks through assessments of the novelty and materiality ofGovernancenew products from the design concept phase. Depending on the results, dedicated reviewers thenconduct design reviews and process design reviews with the aim of improving the safety andreliability of our products. In Fiscal 2017, 710 reviews were conducted and no product safetyrelated issues were found. Furthermore, in pursuit of continuous Monozukuri innovation, theSocial Initiatives

Production Engineering Center develops new manufacturing methods, verifies prototypes andestablishes global standards. It works to achieve drawing and production processes based on theprinciples and fundamentals of manufacturing, placing value on teamwork.

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting68Index

Quality Awards Received from Automotive Manufacturers
We have received a variety of awards from automotive manufacturers in recognition of our efforts
toward quality improvement.

Top Commitment

Automotive
manufacturer

Awards Received

Award Category

RNPO(Renault Nissan
Purchasing
Organization)

Renault Quality Award

Daihan Calsonic Corporation (DHC)

General Motors Thai

Supplier Quality Excellence Award

Calsonic Kansei (Thailand) Co., Limited(CKT)

Nissan Motor Company

Excellent Quality Award

Japan Region
Compressor Business Unit

Nissan Motor Company

Regional Supplier Quality Award
Finalist

CKT
Heat Exchanger System Business Unit

Nissan Motor Company

Regional Supplier Quality Award
Finalist

Calsonic Kansei North America, Inc.
(CKNA)Heat Exchanger System Business Unit

AAT
(Auto Aliance Thailand)

Supplier Quality AwardCKT Electronic System Business Unit

Nissan Motor Company

Japan Regional Quality Award

Vehicle Systems Category, Heat
Exchange System Section

Nissan Motor Company

Certificate of Appreciation for Excellent
Quality, Japan Region

CPM & Interior Business Unit

Nissan Motor Company

Certificate of Appreciation for Excellent
Quality, Japan Region

Compressor Business Unit

Nissan Motor Company

Supplier Quality Award

Calsonic Kansei Romania (CKRO)

Isuzu Motors Ltd.

Excellent Quality Award

Calsonic Kansei Corporation

Nissan Motor Company

Japan Regional Quality Award

Vehicle Systems Category, Heat
Exchange System Section

Nissan Motor Company

Certificate of Appreciation for Excellent
Quality, Japan Region

CPM & Interior、Exhaust System
Business Unit

FY2014

Nissan Motor Company

Certificate of Appreciation for Excellent
Quality, Japan Region

Exhaust System、Compressor
Business Unit

FY2012

Nissan Motor Company

Japan Regional Quality Award

Vehicle Systems Category, Heat
Exchange System Section

FY2011

Nissan Motor Company

Japan Regional Quality Award

Vehicle Systems Category, Climate
System Section

FY2010

Dongfeng Nissan Motor
Corporation

Excellent Quality Improvement Award

Calsonic Kansei (Guangzhou)
Components Corporation

Sustainable Value
Creation Process

Our Stance on
CSR

FY2017

Stakeholder
Engagement

Governance
FY2016Social Initiatives

FY2015

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting69

For a Safe, Reliable, and Comfortable Automotive Lifestyle
Index

Creating Social Values throughInnovations

Top Commitment

Foundation of Monozukuri that Supports Eco-Friendly Products
Sustainable Value
Creation Process

To maintain its industry-leading foundation for Monozukuri, the Calsonic Kansei Group actively
adopts advanced methods and techniques and relentlessly strives towards improvements inreliability. Moreover, in recent years, with an awareness of the rapidly advancing computerization

Our Stance on
CSR

Stakeholder
Engagementof automobiles and market globalization, we are globalizing our R&D structure and investing intechnology development in leading-edge ﬁelds.

Using Advanced Methods and Techniques to Improve ProductDevelopment Quality and Achieve Higher Eﬃciency
The Calsonic Kansei Group develops technologies for various forms of computer-aided
engineering (CAE) and uses CAE in a variety of situations in order to improve development quality
and achieve higher eﬃciency. In addition to simulations of product performance andGovernancedevelopment, we also develop and use CAE in a variety of manufacturing areas, including resin
ﬂow, casting, and plastic molding.

Social Initiatives

Environmental
Initiatives

Compressor vibration analysis

Cockpit module lower limb failure
value analysis

Instrument panel resin cooling
analysisHeat exchanger thermal stressanalysis

Power module solder thermal
fatigue analysis

Meter electronic substrate
Electro-Magnetic Compatibility(EMC) analysis

Sirocco fan airﬂow noise analysis

Air-conditioning system cooling
performance analysis

Vehicle interior demisting
performance analysis

Key CSR
Indicators andResults

About Our
Reporting70

IndexEnsuring High Product Development Quality
Through research into the worldʼs market environments and state-of-the-art equipment andexperimental evaluation technologies, we are replicating those market environments andconducting product development in the four levels of vehicles, systems, components, andTop Commitment

elements/materials, thus ensuring a high level of development quality. We ensure that our highproduct development quality assurance process is carried out without fail, in pursuit of developing
products that are safe, durable, and satisfy our customers.

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

Technical Innovations and R&D Structure
Strenthening the Global Technical Development Structure
In order to meet the needs of our customers around the world, the Calsonic Kansei Group has
established sites around the world including in the United States, the United Kingdom, France,
China, and Thailand. Rooted in each region, we are promoting productGovernancedevelopment that reﬂects the opinions of our customers. Going forward, we will accurately grasp
the needs of diversifying markets and promote construction of a structure capable of quickly
responding to customer requirements.
In addition, we are promoting the utilization of LCC engineering resources to optimize development

Social Initiatives

costs, such as by starting operation of a materials testing center at our site in India (CECI-L&T).
We will continue to advance product development that considers the environment and comfort andwork towards creating a sustainable mobility society.

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

Domain of Focus

71

Respecting Human Rights
Index

Respect for Human Rights across
Our Supply Chain

Top Commitment

Basic Stance
Sustainable Value
Creation Process

GlobalPolicyWith a sincere recognition of the global trends in human rights and labor, the Calsonic Kansei

Our Stance on
CSRGroup respects the diversity and human rights of its oﬃcers and employees alike, and has anestablished policy of non-tolerance of discrimination and harassment. Respect for human rights isenshrined in the Calsonic Kansei Code of Conduct. The Basic Policy on Human Rights and the
Key Policy on Human Rights both state explicitly that sexual harassment and other forms of

Stakeholder
Engagement

harassment will not be tolerated in the workplace, and we are making eﬀorts to prevent humanrights infringements, to ensure that no employee is adversely aﬀected, regardless of who she or
he is.
We are also engaged in the thorough consideration of human rights and labor not only amongst
our own employees, but also in our supply chain.

Governance

Global Code of Conduct for Calsonic Kansei Group
Social Initiatives

Environmental
Initiatives

Human Rights Policy
GlobalKey CSR
Indicators andResults

PolicyOn April 1, 2016, the Calsonic Kansei Group published the Basic Policy for Human Rights and the
Key Policy on Human Rights. These policies apply to our employees as well as to people in our
supply chains. In consideration of the Calsonic Kansei Groupʼs global activities and of societyʼs

About Our
Reportingexpectations, these policies support various international human rights covenants such as theInternational Bill of Human Rights (Universal Declaration of Human Rights, the International
Covenants on Human Rights), the Guiding Principles on Business and Human Rights, the UN
Global Compact, and the ILO Declaration on Fundamental Principles and Rights at Work. The
policies will be revised as needed in the future.

Basic Policy for Human Rights

72

IndexHuman Rights Due Diligence in the Supply Chain
Top Commitment

GlobalSustainable Value
Creation Process

Activities
A Supplier Due Diligence Survey asked a total of 80 questions on seven categories. Thosecategories were (1) corporate governance in CSR, (2) human rights, (3) labor practices, (4)environment, (5) business practices, (6) consumer (or customer) issues, and (7) community

Our Stance on
CSR

development.
We will analyze the opinions and questions received and the responses to the survey questions
and provide feedback to individual suppliers. In Fiscal 2018, we will incorporate them into the
CSR Medium-term Plan.

Stakeholder
Engagement

In Fiscal 2017, the survey was sent to 225 of our major suppliers, which account for 99% of ourdomestic purchasing.

GovernanceSocial Initiatives*As of March 19, 2018

Environmental
Initiatives

Key CSR
Indicators andResults

Human Rights Education and Training

Japan
About Our
Reporting

Activities
Calsonic Kansei and its Group companies in Japan are engaged in raising awareness abouthuman rights among their employees.
In Fiscal 2017, we raised the topic of human rights through the following channels. We areendeavoring to raise awareness of our human rights policy through the company intranet,
publishing it in the CSR handbook, and conducting activities such as on World Human Rights Day.

73

IndexInformation published in company
CSR newsletter

Company magazine

Top Commitment
CSR in-house e-learning

Posters displayed in company(Approx. 15 min. per person) ★

workplaces

Intranet notices

Information published in CSR

about Human Rights Week

Handbook read by all employees ★★

Notices on company electronic

Human rights training as part of new

noticeboards on World Human

employee induction training Approx.

Rights Day ★★★

220 trainees ★★★★

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement★ All CKJ employees, employees at Group companies in Japan who have internet access, China region employees, andCalsonic Kansei Thailand employees who have access to the internet.

Governance★ ★ All CKJ employees, Group companies in Japan only. Posted on Intranet for overseas Group companies.
★ ★★ Japan Calsonic Kansei Headquarters only.
★ ★★★ Japan only, all new employees, approx. 40 min.

In Fiscal 2017, there were ﬁve harassment-related cases, which were handled in accordance withSocial Initiatives

company regulations. We have already incorporated these examples of violations into our humanrights education and training programs, and we continue to make eﬀorts to prevent therecurrence of such incidents.

Environmental
Initiatives

No other cases concerning discrimination were reported.
We will continue in our proactive eﬀorts to educate and raise awareness about human rights,
including for employees of overseas Group companies.

Key CSR
Indicators andResults

About Our
ReportingA seminar for new employees

74IndexEurope Region

Response to UK Modern Slavery Act

Top Commitment

GlobalCalsonic Kansei Europe plc. (CKEU) published its ﬁrst annual statement in response to the UK
Modern Slavery Act in Fiscal 2016.

Sustainable Value
Creation Process

In Fiscal 2017, CKEU again prepared and published an annual statement. In addition to activities
to raise awareness within the company, CKEU also made eﬀorts to raise awareness among its
suppliers by conducting due diligence and distributing the Calsonic Kansei CSR Guidelines for
Suppliers.

Our Stance on
CSR

For the prevention of forced labor, human traﬃcking, illegal child labor, and other similar acts,
these initiatives will be extended globally beyond the United Kingdom. We will continue in our
endeavors to fulﬁl our responsibility to respect human rights across the entire supply chain.
* UK Modern Slavery Act (Modern Slavery Act 2015)

Stakeholder
Engagement

Legislation that requires enterprises to prepare and publish an annual statement on the they have taken to guarantee that they
have not been involved in slave labor or human traﬃcking. For-proﬁt organizations and companies that are engaged in businessactivity in the UK and that have annual sales of over GBP36 million are subject to this obligation.

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting75

Creating an organization in which employees can participate actively
Index

Protecting the Health and Safety of
our Employees

Top Commitment

Global Basic Policy of Health and Safety
Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

Health and Safety Structure

System for Occupational Health and Safety Activities
Japan
SystemGovernanceCalsonic Kansei and its Group companies in Japan have established annual targets for various
indicators related to health and safety, and work to ensure the health and safety of our workplaces
and employees under the supervision of the health and safety management administrator for eachfacility. At the annual Central Health and Safety Committee meeting, we look back on the past

Social Initiatives

ﬁscal year and conﬁrm the priority activities and targets for the entire Group for the new ﬁscal
year.
In Fiscal 2017, based on the results of discussions in that Committee, we chose to focus oureﬀorts on the issues of (1) labor safety, (2) ﬁre prevention, (3) heatstroke prevention, (4)Environmental
Initiatives

maintenance of mental and physical health, and (5) traﬃc safety. In addition, we promoted theimplementation of safety and disaster prevention systems, such as the Safety Evaluation System(SES) and the Fire-Prevention Evaluation System (F-PES), in addition to mental health measures.
We promoted activities for the maintenance and improvement of health and safety.

Key CSR
Indicators andResults

About Our
Reporting76

IndexOccupational Health and Safety System Structure

Top Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Health and Safety Systems Audit
Japan

Key CSR
Indicators andResults

SystemEvery year, Calsonic Kansei and its Group companies in Japan strive to improve the level of theirperformance regarding certain issues. In FY2017, in response to the Top Safety Declaration ateach business location, a review was performed of the previous year and each business location

About Our
Reportingengaged in activities to improve its individual weaknesses. Other action in Fiscal 2017 included
publication of an Occupational Health and Safety Manual and establishment of criteria for healthand safety system audits in line with thatmanualʼs contents.
Further, to conﬁrm the health and safety PDCA cycle, in the future, each business location will
undergo an annual audit, through which each locationʼs weaknesses will be identiﬁed andimprovements made.

77

IndexFiscal 2017 Results
GlobalActivities

Top Commitment

There were no serious accidents or fatalities at Calsonic Kansei or any of its Group companies
in Japan or overseas in Fiscal 2017. There were eight lost-time accidents at Calsonic Kansei
and its Group companies in Japan, but the frequency rate* across the entire Global organization

Sustainable Value
Creation Process

fell from 1.49 in Fiscal 2016 to 1.42 in Fiscal 2017.

Trend in Total Frequency Rate
Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults* Frequency rate: Rate of accidents per 1 million working hours = (Number of accidents) + (total working
hours) x (1,000,000 hours)

SES（Safety Evaluation System）
Japan
SystemAbout Our
ReportingThroughout Calsonic Kansei and its Group companies in Japan, we have introduced the Safety
Evaluation System (SES) for assessing the safety of processes and equipment and making various
countermeasures obligatory depending on the situation.

An inspection78

Evaluators qualiﬁed through a certiﬁcation system audit all facilities in the Group based on a
Index

common SES checklist and check the degree of improvement.
Separate reports on the outcomes of these evaluations are issued for each facility. By evaluating
the Group companies based on the same standards, we aim to identify the diﬀerences in safetylevels among Group companies, in an eﬀort to improve safety levels across the entire Group.

Top Commitment

Supervisors at each plant also use the SES checklist during their rounds of the factory ﬂoor in aneﬀort to maintain and improve safety levels.

Sustainable Value
Creation Process

F-PES(Fire-Prevention Evaluation System)Japan
SystemOur Stance on
CSR

Calsonic Kansei and its Group companies in Japan have introduced the Fire-Prevention Evaluation
System (F-PES), which can be thought of as a version of SES for ﬁre prevention. Similar to the
SES, it involves the use of a common checklist to map features such as hazardous materials

Stakeholder
Engagement

facilities, electrostatic booths, and painting booths within plants, in an eﬀort to prevent ﬁres andcomply with laws and regulations.
Until Fiscal 2014, we trained F-PES evaluators and these evaluators used to conduct F-PES
evaluations at each facility. Since Fiscal 2015, however, company-wide audits are now conductedby Headquarters and internally certiﬁed employees, as is the case with SES.

GovernanceSocial Initiatives

Health Activities
Environmental
Initiatives

Japan
Activities

Key CSR
Indicators andResults

Calsonic Kansei and its Group companies in Japan launched a quit-smoking campaign in Fiscal
2013. That same year, as a trial, they declared one day a year as a non-smoking day. Since then,the frequency of these non-smoking days has increased every year, from twice a year to six times
a year (every odd-numbered month) in Fiscal 2017. At the same time, indoors areas wereAbout Our
Reportingseparated into smoking and non-smoking sections, and the smoking sections are gradually being
reduced.
Individual facilities also hold Quit Smoking seminars, and are raising awareness about the harmcaused by smoking through activities such as measuring the CO2 density of exhaled breath andmeasuring “lung age.”
Other ways in which we are assisting our employees to improve their health include theintroduction of smartphone health apps and encouraging employees to use sports clubs with which
the company has taken out corporate membership.
We are also working to improve health management oﬃces, including at aﬃliated companies, withimprovements such as increasing the number of beds and reviewing the partitions between beds.

79

IndexTop Commitment

Sustainable Value
Creation Process

Mental HealthJapan

Our Stance on
CSR

SystemCalsonic Kansei and its Group companies in Japan has had external experts conduct stress checks
on employees every year since Fiscal 2008. The participation rate is almost 100%, and employees

Stakeholder
Engagementwith high levels of stress are able to receive advice from a specialist doctor. This program alsosatisﬁes the requirements of the stress check system legally required since December 2015.
Due to privacy considerations, the results of individual diagnoses are not provided to the company,
but managers are able to conﬁrm the stress levels of each workplace unit. Managers can examine
the data for their own workplace, which have been analyzed from various perspectives, and use

Governancethat information to make improvements to the work environment.
At divisions with particularly high levels of stress, external counseling experts have been engaged
to listen to the opinions of both employees and their supervisors to identify any weaknesses anddevise improvement plans.

Social Initiatives

In the past, mental health line care seminars were oﬀered for all newly appointed management
personnel. However, analysis of stress levels by position, gender, and age, as well as by division,
which was conducted with the aim of further improvement, found that stress was high among young
employees and mid-career employees. As a result, from Fiscal 2013, mental health self-care

Environmental
Initiatives

seminars were established for general employees advancing to a higher position. The intranet also
has a section that provides information on partner medical institutions and counselors, as part ofour eﬀorts to encourage care at an early stage.

Key CSR
Indicators andResults

We have developed a return-to-work program for employees who have become ill as result of
mental health issues. This is formalized system that aims to enable employeesʼ reinstatement to
the workplace by following the program.

About Our
Reporting80IndexConsultations withTop Commitment

employee assistanceprogram p『avider

Our Stance on
CSR'/
Stress check
Response provided ove「thelnlemet lo employees with
an email address and by alette「lo employees without anemail addressF蛉dback on the diagnosis□

Sustainable Value
Creation Process(Internet, letters, telephone,interviews, elc.)

results to the respondent

Introduction of
medical Institutions
Follow-up by doctoo; (follow-up leller)
Slre$S level report 10 the department

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting81

Creating an organization in which employees can participate actively
Index

Creating an Organization that Values
the Individual and Diversity

Top Commitment

Basic Stance
Sustainable Value
Creation Process

GlobalPolicyTo create a workplace where all employees are able to work with vitality, the Calsonic Kansei

Our Stance on
CSRGroup has established the “CK WAY”, which deﬁnes the values to be shared across the entire
Group. In terms of career development, we recognize the importance of capitalizing on theabilities and diversity of all our employees, and therefore strive to enhance both our evaluation
systems and our human resource development systems.

Stakeholder
Engagement

Governance

Basic Personnel Philosophy
GlobalPolicySocial Initiatives

To contribute to society as a top level company that supports sustainable growth, it is essential
to cultivate top level human resources.
To achieve its corporate vision and mission, the Calsonic Kansei Group designates the following

Environmental
Initiatives

as the inspiration for its people, organizations, and culture, and for itself as a corporate citizen.
PeopleKey CSR
Indicators andResults

Motivated and Innovative People
Organization
Global and Diverse Organization

About Our
Reporting

CultureChallenging and “Care for you” Culture
Corporate citizen
Transparent and Ethical Behavior

82

Index

Sharing a Sense of Values
Top Commitment

GlobalPolicySustainable Value
Creation Process

The Calsonic Kansei Group introduced the CK WAY in 2007, established as the common action
guidelines for all employees, followed by the CKLC (CK Leadership Competencies) in 2010, which
serve as the basis for all the activities of those personnel in managerial positions. These
guidelines provide a common set of values throughout the entire Group and are put into practice

Our Stance on
CSRin our workplaces.

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting83

Creating an organization in which employees can participate actively
Index

Top Commitment

Fair Treatment and Evaluation
Japan
SystemCalsonic Kansei and its Group companies in Japan revise annual salaries and wages based on

Sustainable Value
Creation Processcompetency evaluations, using the CK WAY and CKLC as evaluation parameters, and provide
incentive pay and bonuses based on individual performance evaluations. There is no diﬀerence inbase pay or total compensation between male and female employees on the same labor rank.
Competency evaluations are held once a year, while individual performance evaluations are held

Our Stance on
CSR

Stakeholder
Engagement

twice a year in the form of a face-to-face interview between employee and supervisor. During theseinterviews, evaluation feedback is provided and individual career development is also discussed.

Europe Region

Addressing the Gender Pay Gap
GovernanceAmanda Parry
Senior Manager
Human Resources CalsonicKansei Europe plc.

Social Initiatives

In the United Kingdom, under The Equality Act 2010 (Gender Pay Gap Information) Regulations
2017, companies with 250 or more employees are obligated to release data on the gender pay gap
Environmental
Initiatives

every year.
The Calsonic Kansei Group has set role-based wages at all levels of the organization and does not
diﬀerentiate between men and women. In Fiscal 2017, the average gender pay gap was 3.63% at
Calsonic Kansei Sunderland Limited (CKSU) and 3.65% at Calsonic Kansei UK Limited (CKUK).

Key CSR
Indicators andResults

This was well below the average for British companies, but the fact remains that there are still few
women at the senior management level.
We will continue to review our personnel evaluation systems, be thorough in determining anddisclosing pay gaps, and cultivate leadership and technical capabilities, regardless of gender.

About Our
Reporting84

Creating an organization in which employees can participate actively
Index

Human Resources Development to
Expand Individual Capabilities

Top Commitment

Basic Stance
Sustainable Value
Creation Process

GlobalSystemOur Stance on
CSR

The Calsonic Kansei Group believes that its people are vital above all else for achieving
sustainable growth, and is committed to the development of its human resources. The Group hasrolled out a variety of human resources development programs, with particular focus on thethemes of “Monozukuri” and “global.” These programs were conducted for a total of 8,039

Stakeholder
Engagement

employees and 123,845 hours in Fiscal 2017 (15.4 hours per employee).

GovernanceMonozukuri Human Resources Development
Social Initiatives

GlobalTo further improve the Monozukuri capabilities that have been strengthened through global
Environmental
Initiatives

competition and roll out these capabilities on a global level, we conduct training for the acquisitionof knowledge and skills in a planned manner, including CKPS (Calsonic Kansei Production System)
training, which forms the foundation for Monozukuri at Calsonic Kansei, as well as various
specialized technical training programs. In addition, systematic career path programs are

Key CSR
Indicators andResults

conducted to develop Monozukuri capabilities to the level required in the ﬁeld through a broad
range of operational experience.

About Our
ReportingIntroduction of the Skills Meister System

CK
The Meister Certiﬁcation Committee has been established to deﬁne the skills required for
Monozukuri and to certify and re-certify “meisters” (highly skilled workers). As in the previous year,
a meeting of the Meister Certiﬁcation Committee was held in February 2018, during which one
new meister was certiﬁed, bringing the total to thirteen. Meisters are selected not only for theirskills, but also for being recognized as skilled workers by everyone they work with.

85

IndexTop Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

Governance

Global Human Resources Development
Social Initiatives

GlobalFor the purpose of developing the next generation of global business leaders, each year, we
Environmental
Initiatives

conduct Global Business Leader Training (GBLT), a group training program conducted in English
for leader candidates from each country and region, including Japan. Further, to develop global
Monozukuri human resources, we conduct Global Factory Manager Training for factory managers
and factory manager candidates from each country and region.

Key CSR
Indicators andResults

About Our
Reporting86IndexGlobal Business Leader Training (GBLT)Top Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

Systems for Raising Incentive
Governance

CK
SystemSocial Initiatives

The Calsonic Kansei Group has a range of schemes in place to raise incentives among its
employees and to secure outstanding human resources.

Environmental
Initiatives

Key CSR
Indicators andResults

Number ofparticipants

SystemOutlineQualiﬁcation and Skills Examination
Encouragement Scheme

An incentive allowance is paid to employees who havepassed the in-house skills examination for core skills
designated by the company.

Awards Scheme

The CEO Awards, Division General Manager Awards, andRegion General Manager Awards have been brought
together into a single scheme. Awards are presented eachquarter, and annual awards are presented at the end of
the ﬁscal year.

Career Advancement Assistance
SchemeCareer interviews for all employees

About Our
ReportingThank You Card Scheme

Mentor system

Thank you cards are given to employees in a timely mannerin appreciation for their actions and results, to foster a warm
culture of “mutual recognition, praise, and appreciation.”

Young employees become mentors for newly graduated ﬁrst
year employees and provide advice on things such as work,
the workplace, and human relations. In addition, their growth
as people is promoted as they teach each other.

87

13

1263

All employees

All employees

81Creating an organization in which employees can participate actively
Index

Promotion of Diversity

Top Commitment

Basic Stance

Sustainable Value
Creation Process

GlobalSystem
Employees with a range of diverse values create new innovations through healthy conﬂict, whichleads to the growth of both the company and the individuals. The Calsonic Kansei Group considers

Our Stance on
CSR

the promotion of diversity to be one of the most important management strategies of the entire
Group.
From Fiscal 2018, we welcomed a CEO of foreign nationality, and we are promoting further
deepening of diversity management by appointing oﬃcers who are young or have extensive work

Stakeholder
Engagement

experience outside the company.

GovernanceDiversity Management

Social Initiatives

Japan
SystemCalsonic Kansei and its Group companies in Japan have been carrying out diversity promotion

Environmental
Initiatives

activities since 2011. These activities are led by the Diversity Promotion Team, “shine.net,”
whose members are appointed by individual divisions.
In addition to raising awareness through activities such as workplace study groups and lectures,

Key CSR
Indicators andResults

shine.net suggests measures and systems that support diverse work styles through activities
such as opinion exchange meetings and advanced company benchmarking, and develops
environments for employees that are easy to work in.

About Our
Reporting

Active Participation of Women

CK
Activities
Calsonic Kansei aims to create workplaces and ways of working that make it possible tomaximize the capabilities of women at various life stages, such as childbirth and childcare.

88Accordingly, through employee opinion surveys and surveys on work life balance conducted by
the Work Style Improvement Committee and Diversity Promotion Team, we have incorporated
Index

the voice of our employees into various measures. Furthermore, we have set a goal of at least
doubling the number of female managers from 2016 (15 as of March 31, 2016) by the end of
March 2021. This is part of the General Employer Action Plan that we were required to create
according to the Act on Promotion of Womenʼs Participation and Advancement in the

Top Commitment

Workplace. Toward this goal, we are proceeding to implement various measures incollaboration with the HR Group and other related divisions, in addition to continued eﬀorts tochange the consciousness of people inside the company.

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

Active Participation of Foreign Employees

GlobalActivities
The Calsonic Kansei Group hires talented people regardless of their gender, nationality, or other

Governancefactors. Of the new graduates hired by CKJ in 2017, 10 are foreign nationals. As of April 1, 2017,
the overall number of foreign-national employees at CKJ was 66 (including contracted employees
and employees on temporary assignment from overseas locations and one corporate oﬃcer offoreign nationality.). We are also actively promoting the engagement of local employees in eachSocial Initiatives

region, with 34.9% of the oﬃcers at our local subsidiaries hired locally.

Environmental
Initiatives

Active Participation of People with Disabilities
Key CSR
Indicators andResults

CK
Activities

About Our
Reporting

As well as actively hiring people with disabilities, Calsonic Kansei is taking steps to promote better
understanding through human rights seminars to create a workplace that is friendly to employeeswith disabilities. Besides promoting employment of women and foreign nationals, we are currently
actively expanding both the employment of people with disabilities and the types of jobs open tothem. As of March 31, 2018, employees with disabilities accounted for 1.99% of our workforce.

89

IndexTop Commitment

Improving Company Infrastructure

CK
Activities
In February 2017, we carried out work on the manual security doors between the shared space andSustainable Value
Creation Process

oﬃce area on each ﬂoor at headquarters and changed them to automatic doors. This was done toimprove accessibility, in response to feedback from wheelchair-bound employees who found itdiﬃcult to pass through the manual doors. In addition to improving accessibility, this change has
also made it more convenient for other employees when they need to carry large objects aroundOur Stance on
CSR

inside the company. In October 2016, in response to requests from employees, one of the meetingrooms in the headquarters building was made into a prayer room. Rules for operating this room
have been established so that its use is not conﬁned to any one particular religion.
In October 2017, we carried out “barrier free” improvements to walkways at headquarters to

Stakeholder
Engagement

improve wheelchair access and safety when walking.

GovernanceRe-hiring of Retired Employees
Social Initiatives

Japan
SystemEnvironmental
Initiatives

Japan is facing an unprecedented decline in its birthrate and the aging of its population. To
combat this, Calsonic Kansei and its Group companies in Japan consider measures to re-hireretired employees who are skilled workers to be an important factor of human resource utilization.
This is in addition to measures to support employees in their prime working years in areas such

Key CSR
Indicators andResults

as childbirth, childcare, and nursing care support. Speciﬁcally, we re-hire all employees who havereached the retirement age of 60 but who wish to continue working, making it possible for them toremain at the company until the age of 65.

About Our
Reporting90Creating an organization in which employees can participate actively
Index

Promotion of Work-Life Balance

Top Commitment

Basic StanceJapan

Sustainable Value
Creation Process

PolicyYear by year, changes in the social structure are resulting in increasingly diverse lifestyles of ouremployees. Calsonic Kansei and its Group companies in Japan are supporting these changes
through the development and implementation of various schemes and measures. These schemes

Our Stance on
CSR

and measures are based on the Act on Advancement of Measures to Support Raising NextGeneration Children, but go above and beyond the levels stipulated by the law.
In the back-oﬃce divisions, a ﬂexible ﬂextime system, which has no stipulated core time, has beenin place for some time. We have also made changes to our systems with the aim of improving the

Stakeholder
Engagement

work-life balance of our employees. For example, in Fiscal 2016, the length of vacation allowed forhoneymoons was extended, as was the number of paid holidays for employees who have beenwith the company less than one year. Going forward, we will continue to develop environments thatare easy to work in for employees, for example through an initiative to introduce telecommuting in

Governanceorder to support diverse work styles.

Social Initiatives

Supporting Childbirth, Childcare, and Nursing Care
Environmental
Initiatives

Japan
SystemKey CSR
Indicators andResults

Calsonic Kansei and its Group companies in Japan are striving to enhance their personnel andemployee beneﬁt and welfare systems so that all employees may work with peace of mind andvitality in accordance with their current stage of life, individual situation, and values. In recent years,
we have been putting particular eﬀort into enhancing schemes to support our employees in

About Our
Reportingchildbirth, childcare, and nursing care, to help create a society in which womenʼs abilities arevalued and fully utilized.
Year after year, we have been enhancing our schemes to help employees continue their working
careers and to facilitate their return to work. For example, in Fiscal 2015, we expanded employee
eligibility to work shorter hours so they can care for their children until the year of their childʼselementary school graduation. From Fiscal 2016, we expanded the eligibility for assistance forfamily dependents, extended the length of childcare leave (until the end of the ﬁrst April following
the childʼs second birthday), and instituted a regular interview system to check in with employees
who are on leave of absence. In Fiscal 2017, 100% of employees who had taken leave of absence
returned to work. We also extended the periods that employees may take in nursing care leave
scheme as a way of supporting our employees in their work.

91

IndexTop Commitment

Sustainable Value
Creation Process

China Region
Our Stance on
CSR

Workplaces Where Mothers Can Work With Peace of Mind
While Still Nursing

Stakeholder
Engagement

GovernanceZhang Jie
Human Resources and General Aﬀairs Department
Calsonic Kansei (Guangzhou) Corporation

In China, the government-mandated maternity leave period is 98 days*, but there is no parental
leave scheme.
At Calsonic Kansei (Guangzhou) Corporation (CKGH), about 10% of our female workers return towork before their childʼs ﬁrst birthday.

Social Initiatives

A major concern for working mothers is whether to wean their small children before returning towork or to continue nursing by expressing breast milk in restrooms or elsewhere during work
hours.

Environmental
Initiatives

In Fiscal 2017, to allow female workers to work with peace of mind while still nursing, CKGH
established a special room where they can express. The room is equipped with a refrigerator,
where the women can store their expressed breast milk to take home after work.
With the aim of creating a workplace environment in which its employees can balance work and

Key CSR
Indicators andResults

raising children, CKGH will continue to listen to our employees and pursue a range of activities.
*Varies according to province

About Our
Reporting92

IndexTop Commitment

Kurumin Mark Certiﬁcation

CK
Activities
In FY2015, the Ministry of Health, Labor and Welfare (Japan) awarded the Group Kurumin (1Sustainable Value
Creation ProcessStar) certiﬁcation, a certiﬁcation given to companies with business plans as general business
operators that meet certain requirements under the Act on Advancement of Measures to Support
Raising Next-Generation Children.

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Encouraging a good work-life balanceJapan
Environmental
Initiatives

Calsonic Kansei and its group companies in Japan have put systems in place to support thediﬀerent lifestyles of our employees, which are becoming increasingly diverse every year as the
structure of society changes. The systems we have put in place under the Act on Advancement

Key CSR
Indicators andResultsof Measures to Support Raising Next-Generation Children exceed the standard required by thelegislation.

About Our
Reporting93

ChildbirthChildbirthPre-and post-birth maternity leave

Measures for health examinations, etc.

Expectant mothers are entitled to 6 weeksʼmaternity leave or, in the case of multiple
pregnancy, 14 weeks, dating back from thedue date, and to 8 weeksʼ leave counted fromthe day after the child is born.

On request, pregnant women and new
mothers may be excused from work for thetime required to receive health guidanceor undergo health examinations during
pregnancy and up to one year after thechildʼs birth.

Nursing Care

Child Care

Nursing Care Leave Scheme

Child Care Leave

Employees with less than one yearʼs service
may also take nursing care leave. (under thelegislation, employers may exempt employees
of less than one year from such leave).

Employees may take child care leave up to theﬁrst April after the child turns two years of age.
(the legislative requirement is for up to eighteenmonths of age).

Child Care

Child Care

Regular Consultation Scheme

Shorter working hours to care for children

Consultations are set up for employees on childcare leave to make it easy for them to return towork.

Employees may work shorter hours until thechild graduates from elementary school (thelegislative requirement is for up to third grade).

Flextime Scheme

Employee welfare programs

A ﬂextime scheme has been introduced that has
no core time requirements, with the exceptionthat employees work at least one hour between
8:30 a.m. and 5:30
p.m.

From April 2018, we introduced the CK Group
Welfare Service for the purpose of employees
and their families living a healthy and fulﬁlling
lives. This service is for employees of CalsonicKansei and group companies in Japan who
can select from approximately 20,000
programs that cover areas such as healthpromotion, leisure, learning, childcare, andnursing care to receive services and subsidies
that match their lifestyles.

Index

Top Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting94

IndexTop Commitment

Work-style Reform

GlobalActivities
From Fiscal 2017, we are fully committed to work style reforms for the purpose of improving

Sustainable Value
Creation Process

work productivity, increasing high added-value, and creating satisfying work environments byrealizing diverse work styles. Speciﬁcally, we are promoting the following pillars:
1)Setting available times for meetings with overseas and thoroughly enforcing rules for holding

Our Stance on
CSR

meetings2)Utilizing ICT3)Thoroughly improving eﬃciency of conventional work centered on indirect departments
4)Systemizing various procedures and processes

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting95

Creating an organization in which employees can participate actively
Index

Employee DataCK

Top Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

2015

2017

Number of regular employees

3,643

3,741

4,056

Male

3,352

3,419

3,657

Female

291

322

399

Average age (years)

44.4

44.2

43.7

Length of continuous employment (years)

19.4

18.3

17.5

Turnover rate (%)

1.0

1.3

1.2

6,237,718

6,394,249

6,293,193

1.93

2.07

1.99

Number of employees taking childcare leave

13

14

18

Number of employees taking nursing care leave

0

1

1

Average yearly salary (yen)Rate of employment of people with disabilities (%)

Stakeholder
Engagement

2016

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting96

Social Contribution Activities
Index

For a Better Society

Top Commitment

Basic Stance

Sustainable Value
Creation Process

GlobalPolicyTo build relationships of co-existence and co-prosperity with the diverse communities with which
we come into contact through our business - this is what is being asked of companies from the

Our Stance on
CSR

perspective of creating a sustainable society. As a corporate citizen, the Calsonic Kansei Group
has long emphasized community engagement and development. Furthermore, in our deliberationand implementation of social contribution activities, we constantly consider how we can leverage
the Groupʼs characteristics and know-how to contribute to the development of both the community

Stakeholder
Engagement

and industry.

GovernanceFour Areas of Our Social Contribution Activities

Social Initiatives

GlobalPolicyCalsonic Kansei is expanding its social contribution activities, so that we may contribute to a

Environmental
Initiatives

better society on a global scale, with a focus on four domains. In the expansion of these
activities, we place importance on the expectations of and dialogue with stakeholders, with theaim of contributing to regional development and solving social issues.

Key CSR
Indicators andResults

About Our
ReportingSupporting the next
generation

SafetyEnvironment

97

CommunityIndexActivities Expenditure
CK
Activities

Top Commitment

Since Fiscal 2015, Calsonic Kansei and its Group companies in Japan have been calculating
the social contribution activities expenditure in the areas recommended by the Japan Business
Federation (Keidanren) as examples of issues to be addressed.
Sustainable Value
Creation Process

Social Contribution Activities Expenditure
Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
ReportingSocial welfare
and social
inclusion￥142,120

0.7%

Health andmedicine,
sports￥559,000

2.9%

Academia andresearch￥3,200,000

16.3%

Education,
including social
education￥9,222,000

47.0%

Culture and thearts￥100,000

0.5%

Environment￥2,010,000

10.3%

Local activities￥2,121,000

10.8%International
exchange andcooperation￥150,000

0.8%

Aid to disasterstricken areas￥2,000,000

10.2%

Job creation,technologicaldevelopment,
andemployment
assistance￥100,000

0.5%

98IndexSupporting the Next Generation
Top Commitment

Japan
Sustainable Value
Creation Process

Activities
Through the internal volunteer-run Team SKETT, Calsonic Kansei and its Group companies inJapan conduct a wide range of activities to support children who will be the leaders of the future.

Our Stance on
CSR

Stakeholder
Engagement

Developing Future Engineers
Governance

We provide elementary school students with opportunities to experience vehicle technology andmanufacturing ﬁrst-hand, in the hope that they will become familiar with vehicles and Monozukuri.
We also see such activities as an opportunity for our employeesʼ development, as it enables themto learn the principles and fundamentals of the technologies they are communicating to theSocial Initiatives

Environmental
Initiatives

children, while at the same time, children are able to gain an interest in Monozukuri.

Exhibiting at Kids Engineer
Team SKETT has exhibited at Kids Engineer, a hands-on exhibition for elementary schoolchildren
organized by the Society of Automotive Engineers of Japan, Inc., since the inaugural event in 2008.
In Fiscal 2017, at Kids Engineer 2017 held in Nagoya in August and Mini Kids Engineer in Tohoku,

Key CSR
Indicators andResults

held in Sendai in November, more than 3,000 particpants enjoyed the hands-on experience ofmaking windmills and mini-cars, and participated in a challenge to assemble a cockpit module,
where they learned the enjoyment of Monozukuri.
We also exhibited at the inaugural Parent-and-Child Kids Engineer event hosted by the Automobile

About Our
ReportingBusiness Association of Japan in March 2018, where more than 300 people participated in a
hands-on building experience.

99

IndexTop Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

Number of Participants Attending Kids Engineer (2017)

GovernanceSocial Initiatives

More thanEnvironmental
Initiatives

3,000

Traveling Classrooms for Elementary Schools and Craft
Workshops for Community Centers
Key CSR
Indicators andResults

Since 2012, Calsonic Kansei has been delivering a program of “traveling classrooms,” oﬀering
special science lessons for elementary schools. In Fiscal 2017, we again conveyed the fun ofscience to over 800 pupils at more than 16 elementary schools. We also hold craft workshops at

About Our
Reporting

local childrenʼs centers and community centers to give children the opportunity to experienceﬁrst hand the fun of making things.

100IndexTraveling Classrooms for Elementary Schools

Top Commitment

Sustainable Value
Creation Process

more than

16

Over

pupils participatedelementary schools
Our Stance on
CSR

800

CK
Activities

Stakeholder
Engagement

Support for the Student Formula Japan Competition
Calsonic Kansei sends staﬀ as organizing committee members and judges to the Student Formula
Japan Competition (SFJ), which the Society of Automotive Engineers of Japan, Inc. has been

Governancehosting since 2003.
The students are the stars of this event, pitting their Monozukuri skills against each other withvehicles they have conceived, designed and built themselves. The main objective of SFJ is tonurture professional individuals who will contribute to the development and promotion of automotive

Social Initiatives

technology and industry, with the support of industry, academia, and government.
As well as exhibiting our products, we also arrange opportunities for interaction with the students,
supporting the development of the engineers of the future through technical support.

Environmental
Initiatives

Calsonic Kansei Next-Generation Scholarship
The Saitama Fund for Active Global Talent (managed by Saitama International Association)

Key CSR
Indicators andResults

supports students and working people to study abroad, with the objective of developing global
human resources from Saitama.
In May 2017, Calsonic Kansei contributed to this Fund with the Calsonic Kansei Next-Generation
Scholarship.

About Our
Reporting

Saitama University Calsonic Kansei ScholarshipWith the objectives of developing the Monozukuri human resources of the future and assisting
students who are having diﬃculty continuing their studies for ﬁnancial reasons, in October 2017 westarted contributing to Saitama University Scholarship Foundation to establish a grant-type
scholarship called the Calsonic Kansei Scholarship. Grants to students selected for the scholarshipwill, in principle, continue until the year they graduate.

101Europe Region
Index

Nurturing the Next Generation Through Factory Training
Daniela Ionescu
Manufacturing Trainer
Production Management & Support
Calsonic Kansei Romania S.R.L.

Top Commitment

Sustainable Value
Creation Process

At Calsonic Kansei Romania S.R.L. (CKRO), we have partnered with educational institutions tooﬀer educational programs such as workshops for students, in order to support their future
development.
In Fiscal 2017, we conducted factory training for students aged 14-18 years. This program was an

Our Stance on
CSR

excellent opportunity for students to put into practice the theory they have learned at school, using
CKROʼs actual factory equipment.
Comments from the students included, ʻI was able to increase my awareness of the work
processes,ʼ and ʻI hope to work at CKRO in the future.ʼ

Stakeholder
Engagement

In Romania, where many citizens have to travel to other countries to ﬁnd work, policies are being
put in place on a nation-wide basis to increase the rate of employment in the country.
Going forward, we will further enhance our programs in partnership with educational institutions
around the country to cultivate the next generation, as well as pursuing activities that will help toGovernancecreate jobs in Romania. We wish to give something back to society and contribute to its sustainablegrowth.

Americas Region
Social Initiatives

Providing Educational Programs for Children and YouthEnvironmental
Initiatives

Jason Jones
Calsonic Kansei Production System Coordinator
Calsonic Kansei North America, Inc.

Key CSR
Indicators andResults

Calsonic Kansei North America, Inc. (CKNA) has partnered with local schools in an educational
support activity called Partners in Education.
CKNA supports individual STEM* activities and Career Day programs, in which children are given

About Our
Reportingthe opportunity to think about their future, as a way of showing them how enjoyable and rewarding
working can be and teaching them about societyʼs expectations. The program has been so
successful, that we have received requests from other schools in the area to conduct similar
activities, so we plan to expand the scope of our activities going forward.
＊STEM
Collective term for science, technology, engineering and mathematics education.

102

IndexTop Commitment

SafetyJapan
Activities

Sustainable Value
Creation Process

Donation of School Backpack Covers
Calsonic Kansei promotes traﬃc safety as part of our responsibility as a company involved in
automobiles. In April 2018, we partnered with the City of Saitama, where our headquarters is

Our Stance on
CSR

located, to donate bright yellow safety covers for school backpacks. We discussed with the city andparents what features they wanted in the new covers and made improvements to thespeciﬁcations. The new covers feature a reﬂective band eﬀective for preventing traﬃc accidents.
These covers are distributed to new ﬁrst-graders at all elementary schools in Saitama City via the

Stakeholder
Engagement

City administration.

Governance

Environment
Social Initiatives

Japan
Activities

Environmental
Initiatives

Engagement in Forestation
We have concluded an agreement with the Saitama Prefectural Government and the Saitama

Key CSR
Indicators andResults

Agriculture and Fisheries Corporation to engage in forestation programs.
We have begun by making ﬁnancial contributions to the maintenance of the forests owned andmanaged by the Corporation, including pruning and improvement cutting. We plan to provide
ongoing assistance, including through activities in which CK staﬀ can participate.

About Our
Reporting

Asia Region

Promoting Local Environmental Protection Through Tree-planting

Employees Representative Group
Calsonic Kansei (Thailand) Co., Limited

103

Through its business of manufacturing automotive components, the Calsonic Kansei Group is
deeply connected to emissions of CO2 and other greenhouse gases.
Index

As well as making our products in ways that produce fewer CO2 emissions, we are also promoting
environmental protection through tree-planting activities in the various regions.
CKT is conducting tree-planting activities in the Chonburi region and surrounding areas. In Fiscal
2017, our employees, together with other companies in the region of the plant, our customers, andTop Commitment

our suppliers, planted 4,000 trees.
These local environmental protection activities, particularly the tree-planting, received high praise
and, in March 2018, we received the Environment and CSR Good Governance Award 2017.

Sustainable Value
Creation Process

In Fiscal 2018, we aim to plant 10,000 trees.

Our Stance on
CSR

Community
Stakeholder
Engagement

Installing a Groundwater Membrane Filtration System
Governance

CK
Activities
In October 2015, a groundwater membrane ﬁltration system was installed at the Calsonic Kansei

Social Initiatives

R&D Center and Headquarters. This system draws groundwater up to an extent that will not impact
on the underground water arteries and passes it through sophisticated ﬁltration equipment to makesafe drinking water.

Environmental
Initiatives

This has enabled a dual-source water supply, from groundwater and public water supplies.
The system will secure a “water lifeline” that can supply drinking water even in the event of adisaster rendering public water supplies unusable. We envisage providing drinking water toneighboring residents in the event of disruptions to the entire areaʼs water supply, so we have also

Key CSR
Indicators andResults

stockpiled water supply bags for people to carry the water in.

About Our
ReportingGroundwater membrane ﬁltration systeminstalled at R&D Center and Headquarters

104IndexEnvironmental Communication
Japan
Activities

Top Commitment

In October 2017, Calsonic Kansei invited 36 neighboring residents and companies, as well as
employees of Saitama Prefecture and the City of Saitama, to the R&D center and headquarters foran “Environmental Communication” gathering.

Sustainable Value
Creation Process

Environmental Communication is an initiative of the City of Saitama, which sees it as anopportunity for companies to communicate information about the environmental activities they are
engaged in and to share and exchange information with the local community. Endorsing the aimsof this initiative, Calsonic Kansei has held these Environmental Communication meetings every

Our Stance on
CSRother year since 2015 at its headquarters and the Kodama Plant (Honjo City, Saitama), with theaim of creating a relationship of trust with the local community by deepening mutual understanding
through presentations on Calsonic Kanseiʼs environmental initiatives.
We exchanged opinions with the participants about the companyʼs environmental activities andStakeholder
Engagement

conducted a survey on the participantsʼ expectations of Calsonic Kansei. We incorporated theﬁndings of that survey into the Fiscal 2017 review of Calsonic Kanseiʼs materialities (key CSR
issues) as stakeholder expectations.
We are also engaged in activities designed to popularize electric vehicles (EV). In addition toparticipating in the E-KIZUNA Summit in Saitama, we have also installed a Workplace Charging

Governancestation, where visitors and employees can charge their EVs, in the headquarters parking lot. We
have also set up a rapid charging station outside the headquarters entrance for anyone in the local
community to use.

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

Environmental Communication Meeting

Promoting Locally-oriented Social Contribution Activities
Ricardo Ponce de Leon
Director
Human Resources & Compliance
Calsonic Kansei Mexicana, S.A. de C.V

At Calsonic Kansei Mexicana, S.A. de C.V (CKMX), we have conducted a wide range of social
contribution activities, such as disaster-readiness training in collaboration with the ﬁre department,
distributing Christmas presents to sick and disadvantaged children, donations to hospitals, cleanup activities in the area around the plant, and traﬃc safety campaigns.

105

In 2017, our locally-oriented social contribution activities were recognized with ouraccreditation as a “socially responsible enterprise (ESR) by CEMEFI＊.
Index

This accreditation is valid for one year, so we will continue to pursue these kinds of initiatives
with the aim of receiving it again this year.
＊CEMEFI (Centro Mexicano para la Filantropía)
Established in December 1988. A nongovernmental, not-for-proﬁt organization that aims to promote a culture of

Top Commitmentphilanthropy and corporate social responsibility and to encourage community engagement.

Being a Good Corporate Citizen
Sustainable Value
Creation Process

GlobalBoth in Japan and overseas, we aim to contribute to local communities as a good corporate

Our Stance on
CSR

citizen by recommending and sponsoring staﬀ volunteers at government-hosted events.
We also strive to forge partnerships with local communities by setting up various
opportunities for communication with them.

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting106

IndexTop Commitment

Environmental Initiatives

Sustainable Value
Creation Process

Our Stance on
CSR

Environmental Management
Stakeholder
Engagement

Environmentally-Conscious Monozukuri
Approaches to Climate Change

GovernanceApproaches to Resources Conservation and Recycling
Appropriate Management of Chemical Substances

Social Initiatives

Environmental Burden Data (Material Flow)
Environmental Accounting

Environmental
Initiatives

Environmental Action Plan and Results
Environmental Data of Manufacturing Plants in JapanKey CSR
Indicators andResults

About Our
Reporting107

Environmental Management
Index

Top Commitment

Sustainable Value
Creation Process

To Become a Company that is
Recognized for its Environmental
Initiatives
Basic Stance

GlobalOur Stance on
CSR

PolicyTo further enhance its environmental protection initiatives through its global corporate activities, theCalsonic Kansei Group revised its Environmental Policy established in 2000, relaunching it in

Stakeholder
Engagement

Fiscal 2017 as the CK Green Policy, consisting of the Basic Environmental Policy andEnvironmental Action Guideline.
Based on this Policy, we will all engage in environmental activities as One Team and contribute to
the realization of a sustainable society, as declared in the Calsonic Kansei Vision (corporate
philosophy).

GovernanceSocial Initiatives

CK Green Policy (Environmental Policy)

Environmental
Initiatives

Environmental Management Promotion System
Key CSR
Indicators andResults

GlobalSystemAbout Our
ReportingCalsonic Kansei Corporation convenes its Global Environmental Management Meeting to promote theenvironmental activities of the entire Group.
The Global Environmental Management Meeting is the supreme conference body concerning
environmental activities in the Calsonic Kansei Group. It is chaired by the executive responsible forthe environment, and its members are drawn from the membership of the Environment Committees
set up in each of the main corporate activity areas, such as development and production, as well as
the leading environmental oﬃcers of our global locations. The role of the Meeting is to develop
proposals for activity policies and measures and to manage the progress of environmental activities.
In Fiscal 2017, with the revision of the CK Green Policy (Environmental Policy), a new Supply Chain
Environmental Committee was established to engage in strengthening environmental action acrossthe life cycle of our products.

108IndexTop Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting109

IndexMedium-Term Environmental Plan: Calsonic Kansei
Green Program 2016

Top Commitment

Japan

Overseas

PolicySustainable Value
Creation Process

The Calsonic Kansei Group has deﬁned its goals and conducted activities based on the CalsonicKansei Green Program 2016, its medium-term environmental plan implemented between ﬁscal
2011 and ﬁscal 2016.
※New Medium-term Environmental Plan is expected to be announced at the end of September.

Our Stance on
CSR

TargetItem
Category

RegionTargetachievement
schedule

FY2016target

FY2016
resultsJapan

Top Singleyear
Bottom Midterm

2.5%
reductioncompared to
FY2015
18.5%
reductioncompared to
FY2005

3.8%
reductioncompared to
FY201532.3%
reductioncompared to
FY2005

Americas,
Europe,and Asia

Top Singleyear
Bottom Midterm

2.5%
reductioncompared to
FY2015
13.6%
reductioncompared to
FY2005

1.2%
increasecompared to
FY2015
26.7%
reductioncompared to
FY2005Japan

Top Singleyear
Bottom Midterm

1.0%
reductioncompared to
FY201522.0%
reductioncompared to
FY20100.3%
reductioncompared to
FY201535.1%
reductioncompared to
FY2010Japan

Top Singleyear
Bottom Midterm

1.0%
reductioncompared to
FY20156.0%
reductioncompared to
FY20103.7%
reductioncompared to
FY20158.0%
reductioncompared to
FY2010Top Singleyear
Bottom Midterm

2.0%
reductioncompared to
FY201518.1%
reductioncompared to
FY2005

1.1%
increasecompared to
FY201526.1%
reductioncompared to
FY2005Top Singleyear
Bottom Midterm

1.0%
reductioncompared to
FY20156.0%
reductioncompared to
FY20102.3%
reductioncompared to
FY201518.8%
reductioncompared to
FY2010

Stakeholder
Engagement

CO2 from
production

Governance
Reduction of CO2 emissions(Reduction of energy
consumption)
Reduction of production

Social Initiatives

CO2 emission intensity(Emissions/sales revenue)
Reduction of oﬃce CO2
emission intensity(Emissions/ﬂoor space)

Environmental
Initiatives

CO2 fromoﬃces

Key CSR
Indicators andResults

About Our
Reporting

CO2 from
logistics(Transport tonkilometers)

Japan
Resource recycling
Reduction of waste
intensity (waste/sales
revenue)

Waste(Waste for
disposal +valuableresources)
Americas,
Europe,and Asia110

Target

Index

Item
Category

RegionJapan

Top Commitment

Targetachievement
schedule

FY2016target

FY2016
results

Top Singleyear
Bottom Midterm

2.0%
reductioncompared to
FY2015
21.4%
reductioncompared to
FY2009

13.6%
reductioncompared to
FY2015
19.7%
reductioncompared to
FY2009Top Singleyear
Bottom Midterm

2.0%
reductioncompared to
FY20154.0%
reductioncompared to
FY2014

7.6%
increasecompared to
FY2015
2.6%
reductioncompared to
FY2014
6.4%
increasecompared to
FY2015
83.9%
reductioncompared to
FY20000%Waterconsumption

Sustainable Value
Creation Process

Conservation of water, air, soil
and biodiversity
Usage intensity

Americas,
Europe,and Asia(usage/sales revenue )Our Stance on
CSR

Stakeholder
Engagement

Zero Landﬁll (reduce landﬁll
waste to zero)Landﬁll rate
(Landﬁll volumes/waste

VOC (Volatile
Organic
Compounds)Japan

Top Singleyear
Bottom Midterm

2.0%
reductioncompared to
FY201530.0%
reductioncompared to
FY2000Landﬁll waste

Americas,
Europe,and Asia

Mid-term

Maintainzero landﬁll

volumes)

GovernanceSocial Initiatives

Identiﬁcation of Key Issues Concerning the Environment

GlobalEnvironmental
Initiatives

To contribute to the realization of a sustainable society, the Calsonic Kansei Group identiﬁes key
issues related to the environment.
In Fiscal 2017, with the announcement of the new Medium-Term Business Plan, Compass 2021,

Key CSR
Indicators andResults

we conducted a review of our CSR key issues and identiﬁed ﬁve environmental issues as key
issues. They are: action on climate change, eﬀective use of resources, water conservation,
prevention of pollution, and conservation of biodiversity. Our global sites are planning andpursuing speciﬁc initiatives to address the Groupʼs key issues within their environmental

About Our
Reportingmanagement systems, taking into consideration the sitesʼ respective characteristics and the
aspects of risk and opportunity.

111IndexStrengthening Environmental Management

Top Commitment

Development and Continued Improvement ofEnvironmental Management System
Sustainable Value
Creation Process

GlobalPolicyThe Calsonic Kansei Group has been pursuing ISO 14001 certiﬁcation, the international

Our Stance on
CSR

standard for environmental management systems, since 1998. Thirteen sites in Japan and22 overseas sites have already obtained certiﬁcation. In 2015, there was a majoramendment of the standard and ISO 14001:2015 was released. Three CK sites completed
transition to the new system in Fiscal 2016. 27sites completed their transition to new system

Stakeholder
Engagementin Fiscal 2017.
Five more sites will progressively move over to the new system in Fiscal 2018, withtransition scheduled for completion by the ﬁnal deadline of September 2018.
Further, to raise the standard of our environmental management systems, more internal
auditors are being appointed at each location. Also, with the Environmental & Energy Control

Governance

Department playing a central role, regular internal audits, as well as external audits byauditing agencies, are being undertaken.

Social Initiatives

Status of ISO 14001:2015 Certiﬁcation= Sites that acquired certiﬁcation in Fiscal 2017
Certiﬁcation Status within Calsonic Kansei

Environmental
Initiatives

Key CSR
Indicators andResults

RegionJapan

Manufacturing Plants

Registered transition to 2015 version

Gunma Plant

Oct. 2017

Kodama Plant

Oct. 2017

Oppama Plant

Jul. 2017

Yoshimi Plant

Nov. 2017

Testing Research Center

Jan. 2018

R&D Center, Headquarters

Feb. 2017

About Our
Reporting112

Certiﬁcation Status at Major Group Companies in Japan
Index
RegionTop Commitment
Japan

Sustainable Value
Creation Process

Company

Registered transition to 2015 version

Calsonic Kansei Iwate Corporation

Feb. 2018

Calsonic Kansei Kyusyu Corporation

Nov. 2017

Calsonic Kansei Utsunomiya Corporation

Feb. 2018

Calsonic Kansei Fukushima Corporation

Dec. 2017

Tokyo Radiator Mfg. Co., Ltd.

Jan. 2018

Calsonic Kansei Tochigi Corporation

Dec. 2017

Calsonic Kansei Yamagata Corporation

Oct. 2017

Certiﬁcation Status at Major Overseas Group Companies
Our Stance on
CSR

Stakeholder
Engagement

RegionNorth
America

GovernanceEuropeSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

Asia

Company

Registered transition to 2015
versionCalsonic Kansei North America, Inc. Shelbyville Plant

Sep. 2017

Calsonic Kansei North America, Inc. Lewisburg Plant

Sep. 2017

Calsonic Kansei Mexicana, S.A. de C.V Aguascalientes Plant

Nov. 2017

Calsonic Kansei Mexicana, S.A. de C.V San Francisco Plant

Nov. 2017

Calsonic Kansei Sunderland Limited

Apr. 2018 (scheduled)Calsonic Kansei UK Limited Washington Plant

Apr. 2018 (scheduled)Calsonic Kansei UK Limited Llanelli Plant

Feb. 2018

Calsonic Kansei Spain, S.A.

Mar. 2018

Calsonic Kansei Romania S.R.L.

Nov. 2017

Calsonic Kansei RUS LLC

Mar. 2018

Daihan Calsonic Corporation.

Jul. 2018 (scheduled)Calsonic Kansei Korea Corporation

Jul. 2018 (scheduled)Calsonic Kansei (Malaysia) Sdn. Bhd.

Sep. 2018 (scheduled)Calsonic Kansei (Thailand) Co., Limited

Aug. 2017

Siam Calsonic Co., Limited, Amata

Jul. 2017

Siam Calsonic Co., Limited, Bang Phli

Jul. 2017

Calsonic Kansei Motherson Auto Products Limited

Mar. 2018

Calsonic Kansei (Wuxi) Corporation

Nov. 2017

Calsonic Kansei Components (Wuxi) Corporation

Nov. 2017

Calsonic Kansei (Guangzhou) Components Corporation

Jan. 2018

Calsonic Kansei (Xiang Yang) Corporation

Jan. 2017

Calsonic Kansei (Haimen) Car Air-Conditioning Compressor
Corporation

Jul. 2017

Calsonic Kansei (Guangzhou) Corporation

Feb. 2018

Calsonic Kansei (Guangzhou) Corporation, Zhengzhou
BranchJan. 2018

Calsonic Kansei (Guangzhou) Corporation, Dalian BranchOct. 2017

Calsonic Kansei (Guangzhou) Touring Center

Dec. 2016113

Index

Conducting Environmental Audits at Overseas Locations
Overseas
Activities

Top Commitment

During Fiscal 2017, we conducted environmental audits at four sites, where we identiﬁed andmanaged risks. This has helped to raise the standard of environmental management at those sites.
Audits are planned for Fiscal 2018 as part of our eﬀorts to improve the standard of environmental

Sustainable Value
Creation Process

management on a global basis.

Response to Scope 3 Emissions
Our Stance on
CSR

Japan

Overseas

Activities
Aiming to reduce CO2 emissions in the value chain, from ﬁscal 2016, the Calsonic Kansei Group

Stakeholder
Engagement

began an initiative to calculate emissions under the Scope 3 Greenhouse Gas Protocol in FY2015.
In FY2016, these emissions were calculated in 13 categories.

Governance

Disclosure of Environmental Information Outside theCompany
Social Initiatives

GlobalEnvironmental
Initiatives

Recognition by CDP
CDP is an international non-proﬁt organization, established in London in 2000, which calls on
companies and municipalities around the world to disclose their environmental performance

Key CSR
Indicators andResults

data based on requests from investors, for use by rating agencies and policy decision-makers.
Calsonic Kansei Corporation has disclosed information to the CDP Climate Change and Water
surveys, and received a B ranking for both surveys in 2017.

About Our
Reporting114

Environmentally-Conscious Monozukuri
Index

Pursuing “Green” policies andcreating new value

Top Commitment

Basic Stance
Sustainable Value
Creation Process

The Calsonic Kansei Group will contribute to creating a progressive, sustainable mobility society
by developing innovative products based on our advanced technological capabilities andknowledge accumulated over many years. Through our business activities, we will continue to

Our Stance on
CSR

extend solutions to social issues on a global scale and create new value every day.

Stakeholder
Engagement

Strategic Monozukuri in the Pursuit of the
Sustainability of the Mobility Society
GovernanceWith our aim to solve social issues through our business activities, the Calsonic Kansei Group
Social Initiatives

positioned Cabin Innovation and Energy Management as the core focus domains in the new
Medium-Term Business Plan, Compass 2021, established in 2017, and the mid-term plans of ourdevelopment divisions. We also declared that we would contribute to the development of safety
and comfort technologies and of environmental technologies through product development in thoseEnvironmental
Initiatives

domains. The heads of the development divisions also serve concurrently as members of the
Product Planning Oﬃce and are striving to achieve partnerships between development andproduct planning.

Key CSR
Indicators andResults

About Our
Reporting115

IndexTop Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

Promoting Innovations in Energy Management

In our six-year Medium-term Business Plan CK GX4 T10, which covered Fiscal 2011 to 2016, we
declared “Green” as one of the keys to our growth strategy, and aimed to create at least ten typesof next-generation environmental technologies or products that would lead the world. By the endof Fiscal 2016, we had succeeded in the commercialization of those products.
From Fiscal 2017, under our new Medium-term Business Plan Compass 2021, we have declared
our goal of pursuing energy management as one of the pillars of our core116

domains.
Boasting the worldʼs largest track record in mass production of inverters and battery managementIndexsystems, we are leveraging our power management and heat management technologies to provide
comprehensive energy management.
We have also stepped up our approaches to the development of technologies to bring mobility withminimal environmental impact, such as electric vehicles, closer, and to the development of products

Top Commitment

Sustainable Value
Creation Processthat will contribute to purifying exhaust gases and improving fuel eﬃciency.

Initiatives for Reducing Environmental Footprint Through Energy
Management
We will contribute to the expansion of electric vehicles by developing technologies that utilize

Our Stance on
CSRelectric power eﬃciently.
We will contribute to reducing overall heat loss and improving vehicle eﬃciency througheﬃcient management of heat.
We will contribute to improving fuel eﬃciency and electricity eﬃciency by developing systems

Stakeholder
Engagement

for power conservation in climate control, which is a major consumer of energy, fromperspectives that include the comfort of vehicle occupants.
We will improve exhaust gas puriﬁcation performance and reduce air pollution by managing
exhaust gas temperature.

Governance

Products in the Energy Management Domain[Electronic products] Inverter
Social Initiatives

Alternative to gasoline for vehicle power (contributing to the popularization of electriﬁcation)[Exhaust systems] Sheet metal turbine housing CK-SMiTH
Improved exhaust gas puriﬁcation and fuel eﬃciency performance

Environmental
Initiatives[Heat exchange products] Built-in oil cooler (BOC)
Compact with high radiation eﬃciency

Key CSR
Indicators andResults

About Our
Reporting[Compressors] Vane-rotary compressor with ﬁxed displacement: CR Series of Fixed
Displacement Compressors
Small and light with high energy eﬃciency

Domains of Focus

117

IndexEco-Friendly Products Widely Used in the Market

Top Commitment

Examples of Existing Eco-Friendly Products
With the increasing interest in environmental issues and continued tightening of exhaust
Sustainable Value
Creation Processregulations in countries and regions around the world, the functions required of exhaust systems
are becoming more advanced, calling for a high standard of development technology capabilities.
The Calsonic Kansei Group develops and manufactures optimal products to live up to the highexpectations placed on us as a supplier of exhaust systems.

Our Stance on
CSR

Example of Exhaust System
Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Main Features of Our Exhaust Systems
Exhaust Manifold

About Our
ReportingLightweight, compact, and low heat capacity achieved using SUS materials, contributing to prompt
catalyst activation.
Manifold Converter
Available either integrated with the exhaust manifold or as a separate device. The integrated unit
particularly contributes to weight reduction and low heat capacity due to the exclusion of theﬂange for tightening.

118

IndexCatalytic Converter (Underﬂoor)
Set in an optimal position while ensuring the required catalytic capacity. Manufacturing time has
been signiﬁcantly reduced through the elimination of the heat shield for the spinning converter
and a reduction in the number of parts.

Top Commitment

Vibration Absorber
Noise and vibration performance and exhaust system durability have been improved through the
Sustainable Value
Creation Process

isolation of the exhaust system. Two types of vibration absorber (ﬂexible tube and sphericaljoint) are available depending on the optimal part for the vehicle layout.

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting119Approaches to Climate Change
Index

An Environmentally-Friendly Site inLine with International Standards

Top Commitment

Basic Stance
Sustainable Value
Creation Process

GlobalPolicyOur Stance on
CSR

The Calsonic Kansei Group has identiﬁed responding to climate change as a key issue inenvironmental protection, and we engaged in actions to reduce the carbon footprint of our global
locations.
Through the implementation of ISO 14001 environmental management systems, our global

Stakeholder
Engagement

locations are striving to achieve their targets and make continuous improvements. From Fiscal
2017, to respond to growing social expectations regarding climate change, we have set a CO2
emissions reduction target that incorporates the approach of the international Science Based
Targets (SBT) initiative. This initiative advocates the Paris Agreement target of holding theGovernanceincrease in the global average temperature to well below 2℃ above pre-industrial levels. We havedeclared our target in the new corporate Medium-term Business Plan, Compass 2021.
In addition to energy conservation activities that we have conducted to date, the Group will work asa united force on a variety of measures, including the installation of energy-saving equipment andSocial Initiatives

the adoption of new manufacturing methods that will lead to energy savings, to further accelerate
the reduction of business-related CO2 emissions.

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

Climate Change Action

Results of CO2 Emission Reductions in Production Activities
GlobalActivities
In terms of emission intensity (total CO2 emissions/sales revenue), the pursuit of activities aimed at
the respective mid-term reduction targets of 20.5% for Japan and 15.8% for overseas compared to
Fiscal 2005 resulted in reductions of 31.2% in Japan and 21.1% overseas in Fiscal 2017.
In Japan, following on from the previous ﬁscal year, we carried out Energy Saving Special Activities
in all locations. These consisted of identifying areas for improvement and sharing examples ofenergy-saving improvements made. Initiatives overseas included the identiﬁcation of areas for
improvement through energy-saving diagnostic checks, and sharing of improvements made.

120

IndexResults of CO2 Emission Reductions and Emission Intensity
Reductions in Production Activities

Top Commitment[Thousand t-CO2][t-CO2/million yen]

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

Governance

CO2 emissions in Japan (left axis)

CO2 emissions overseas (left axis)

CO2 emissions per unit (right axis)

CO2 emissions intensity (right axis)(Fiscal year)

Social Initiatives

CO2 Emissions
Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting[Unit: Thousand t-CO2]

Japan

73

37%

The Americas

65

32%

Europe

25

13%

Asia

36

18%

199

thousand t-CO2

121

IndexActivity Report

Top Commitment

Use of Green PowerJapan
Sustainable Value
Creation Process

Activities
The Calsonic Kansei Group participates in the Green Power Certiﬁcate Program, andcontributes to the generation of 2,245,652 kWh of natural energy per year.

Our Stance on
CSR(Applicable sites: Calsonic Kansei Corporation Gunma Plant, Yoshimi Plant, CKP
Corporation, Calsonic Kansei Utsunomiya Plant Co., Ltd.)

Stakeholder
Engagement

Governance

Results of CO2 Emission Reductions at the Logistics Stage
Social Initiatives

Japan
Activities
As Calsonic Kanseiʼs CO2 emissions at the logistics stage are less than 30 million t-km, we do not

Environmental
Initiatives

qualify as a Speciﬁed Consigner under Japanʼs Energy Saving Act and are therefore not required
to report our emissions. However, we have established targets for CO2 emissions reductions inlogistics and we are working to reduce our transport tonne-kilometers.
Cooperation with our customers and suppliers is essential to reduction activities at the logistics

Key CSR
Indicators andResults

stage. In the area of cooperation with our customers, we are establishing distribution networks that
achieve the eﬃcient combination of collections from customers and supply from the CalsonicKansei Group and we are working to improve truck ﬁll rates.
In the area of cooperation with suppliers, we have established a milk-run style of logistics for

About Our
Reportingcollecting parts from suppliers. We are now able to transport the required volume of parts at therequired time with high truck ﬁll rates. For sea freight as well, by improving container ﬁll rates, weare achieving our transport tonne-kilometer reduction targets.

122IndexTransport tonne-kilometers in the logistics stage(10,000 t-km)

Top Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement(Fiscal year)

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting123Approaches to Resources Conservation and Recycling
Index

To Achieve a Closed-loop Society

Top Commitment

Basic Stance

Sustainable Value
Creation Process

GlobalPolicyThe Calsonic Kansei Group considers the eﬀective use of resources and the protection of water
resources to be key issues in environmental protection.

Our Stance on
CSR

In terms of the eﬀective use of resources, our global locations are engaged in eﬀorts to reduce theamount of waste generated (waste for disposal and valuable resources), eliminate waste sent tolandﬁll (zero landﬁll), and conserve resources. For the protection of water resources, they are
engaged in activities to reduce water use.

Stakeholder
Engagement

Through the implementation of ISO 14001 environmental management systems, our global
locations are striving to achieve their targets and make continuous improvements.

GovernanceSocial Initiatives

Landﬁll rate

Water use intensity[Emissions / Sales revenue][Landﬁll volumes /Waste volumes][Total water consumption /Sales revenue]

Japan

Japan

Japan

Emission intensity

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting-24.8 %

0%-31.8 %

Fiscal 2017 target:
19.7% reduction[Compared to FY2005]

Target continuously
achieved since FY2006

Fiscal 2017 target:
23.0% reduction[Compared to FY2009]

Overseas

Overseas

Overseas-16.9 %

Fiscal 2017 target: 6.9%
reduction[Compared to FY2010]

0%

Fiscal 2017 target:
Maintain zero landﬁll

124+1.0 %

Fiscal 2017 target: 5.9%
reduction[Compared to FY2014]

IndexEﬀective use of resources

Top Commitment

Waste Reduction Results
GlobalSustainable Value
Creation Process

Activities
In Japan, each plant has implemented activities to reduce process defects. Waste generation
intensity (total waste/sales revenue) was reduced by 24.8% compared to FY2005, achieving the

Our Stance on
CSR

mid-term target of 19.7% but falling short of the single-year target.
Overseas, eﬀorts were made to improve the eﬃciency of reduction activities through activities toreduce process defects and the horizontal roll-out of resource conservation best practice. Waste
generation intensity (total waste/sales revenue) was reduced by 16.9% compared to FY2010,

Stakeholder
Engagement

achieving both the medium-term target of 6.9% and the single-year target.

Waste Generated by Calsonic Kansei Group
Governance(t)

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults(Fiscal year)

About Our
Reporting125

IndexVolume of Waste Generated and Recycled by CalsonicKansei Group by Region (FY2017)
Top Commitment(t)Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Total waste generated

Waste recycled

Landﬁll Waste Results
Overseas
Activities

Environmental
Initiatives

Starting in FY2012, a target of zero landﬁll by Fiscal 2015 was set for our overseas operations,and this target has been achieved. Activities continued in Fiscal 2017 and zero landﬁll wasmaintained.

Key CSR
Indicators andResults

About Our
ReportingProtection of water resources

Water Use Reduction Results
GlobalActivities
Calsonic Kansei is working to reduce water use, with the aim of helping to protect water
resources. To strengthen our water use reduction initiatives, we have established a global
monitoring system. Through this system, we are identifying production sites with126

particularly heavy water use and problematic equipment, updating equipment to achieve reductions
and adopting water-eﬃcient systems for ﬂush toilets. Through the pursuit of these and otherIndex

initiatives on a global basis, we succeeded in a major reduction in water use over the previous
ﬁscal year to 1,169,000m3 in Fiscal 2017.
In Japan, water use totaled 524,000m3, a reduction from the previous ﬁscal year. This provided an
excellent result in terms of water use intensity (water use volume/sales revenue), which was

Top Commitment

reduced by 31.8%, achieving the mid-term target of a 23.0%reduction compared to FY2009. The
single-year reduction target of 2.0% was also achieved with a reduction of 15.2%.
Overseas, water use intensity (water use/sales revenue) increased by 1.0% compared to FY2014,

Sustainable Value
Creation Process

failing to achieve the mid-term reduction target of 5.9%. Water use, however, was steadily reduced
from the previous year, falling to 645,000m3.
We will work on strengthening our reduction activities, with a focus on locations with heavy wateruse.

Our Stance on
CSR

Water Use in Japan
Stakeholder
Engagement

Water use [km3]

Water use intensity [m3 / million yen]

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults(Fiscal year)

Water use (left axis)

Water use intensity (right axis)

Water use intensity medium-term target (right axis)

About Our
Reporting127

IndexWater Use Overseas[m3 / million yen]

[km3]
Top Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

Water use (left axis)

Water use intensity medium-term target (right axis)

GovernanceSocial Initiatives

Water use intensity (right axis)

Calsonic Kansei Group Water Use by Region (FY2017)[km2]

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
ReportingWater supply

Industrial water

Groundwater

128(Fiscal year)

IndexTop Commitment

Activity ReportJapan
Resource Recycling Initiatives
The Calsonic Kansei Group has been consistently carrying out integrated recycling activities as a

Sustainable Value
Creation Process

voluntary initiative for environmental conservation. Going forward, we are continuing to promote
in-house recycling initiatives as well as outsourcing the recyclingof waste to meet the needs of the circular economy.
A speciﬁc action being taken is the recycling of recovered catalysts used for exhaust puriﬁers, in

Our Stance on
CSR

which environmentally friendly dry separation equipment is used to eﬃciently separate and collectmaterials (wash coat) from these catalysts, which contain precious metals that are valuable
resources.
In Fiscal 2017, we began recycling and re-using plastic containers used for in-house logistics,

Stakeholder
Engagement

leveraging Calsonic Kanseiʼs plastics processing technology. Through the in-house recycling ofthese plastic containers, which previously would have been discarded, we are not only reducing
waste, but also helping to improve technologies for the use of recycled plastics.

GovernanceOperations to Recycle Waste from Manufacturing Plants
GlobalSocial Initiatives

Activities
To make eﬃcient use of the planetʼs limited resources, the Calsonic Kansei Group is seeking toachieve zero emissions at all the Groupʼs locations and to reduce the amounts of materials used

Environmental
Initiatives

and waste generated (waste for disposal + valuable resources).

Key CSR
Indicators andResults

About Our
Reporting129

IndexOil waste(cooking oil waste)→

SeparaUon/
recydng

Oleochemical
manufacturers

Fuel for oleochemlcal
manufacturers'
company cars,
印Imai reed

Biodlesel fuels,
assorted animal
feedDiscarded
fluorescent tubes→

Crushing/
S叩aration

Material
manufacturers

Recyded materials
for each element

Recycled materials(mercury,glass. metals)

Glassbottl蕊

→Sorting/
0呻ing

Glass
manufacture心

Glass mat函als

Glass bottles

Waste plastic (soft)→

Crushing/
palletization

Resin-recycling
manufacturers

Boiler fuelSolid fuels

Oil waste(oil-bearlngwasteclo剌→

lnclneralion

Waste heat boiler
lnstallaUon
manufacturers

Utilization ofwaste heat(collecting steam)

Boiler fuels

Waste plastic→

Crushing/
separation

General re匹ing
manufacturers

Sorting,steel-making
matenals, fuelFerrous materials,
solid fuels,
fuels

Incineration/
畑onShaft furnace
manufacturen.

Shaft
furnace如ucing
agentsSt蛉I-making
mat面als,
roadbed materials(incineration
resid1.18s)

Shaft furnace
manufacture虞Utilization ofwaste heat
(furnace畑atreserves)

Roadbedmaterials(incineration
resid凶s)

Shafi rumace
manufacturers

Processing
granular malerlals

R細materials
for cement

Top Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

Governance

Metal scraps(including aluminumchips)[);scarded
fluorescent tubes(fragments)

Social Initiatives

Infectious waste

Glass and ceramic
scraps_J

Environmental
Initiatives

SludgeKey CSR
Indicators andResults

Oil waste (filter)

Sludge(flux, grinding residue)→

Incineration

Dehydrated sludge(filter press}→

Classif1C81lon

Wood scraps→

ShreddingWastewood-recycling
manufacturers

Compressed
graft cublng

Laminated wood(partlcle boards)

T函and grassdippings→

Shredding/fermentation

Compostmanufacturers

CompostmalenalsCompostAbout Our
Reporting130

Appropriate Management of Chemical Substances
Index

Thorough Management of Chemical
Substances

Top Commitment

Basic Stance
Sustainable Value
Creation Process

GlobalPolicyOur Stance on
CSR

The Calsonic Kansei Group uses chemical substances in products and product manufacturing. To
ensure that these substances do not have a serious impact on the environment at all stages, fromproduct manufacturing to use and disposal, the Group considers environmental pollution
countermeasures, centering on chemical substances, and protection of biodiversity as key issues

Stakeholder
Engagement

for environmental protection.
With the increase in environmental awareness in the global community, legal restrictions regarding
the reduction and discontinuation of the use of harmful chemical substances are being reinforced
every year.

Governance

Based on this recognition, to comply with laws and meet the requirements of its customers, theCalsonic Kansei Group seeks to achieve thorough risk management at each of its global locationsin its products, manufacturing processes, purchased parts and processed materials, while adheringto the following fundamental principles: use as few harmful chemicals as possible, change toalternatives or eliminate as many harmful substances as possible, and properly manage harmfulSocial Initiatives

chemicals if they have to be used.

Environmental
Initiatives

Prevention of Environmental Pollution by Products
Key CSR
Indicators andResults

GlobalPolicyAbout Our
ReportingIn addition to complying with the laws and regulations of each country, including Europeʼs ELV
Directive*1 and REACH Regulations*2, the Calsonic Kansei Group sets voluntary targets to meetthe requirements of its customers worldwide, and is working to reduce the content of environmental
hazardous substances in its products. Speciﬁcally, we are enhancing our systems for management
and follow-up using in-house systems, promoting the development of alternative technologies, andbuilding chemical management systems across the entire supply chain through the Green
Procurement Guidelines.
The Group is also pursuing analysis of and prompt action regarding chemical substances inadvance of their being listed as SVHCs*3 under the REACH regulations.

131*1 ELV Directive: End of Life Vehicles Directive*2 REACH Regulations:Registration, Evaluation, Authorisation and Restriction of Chemicals

Index*3 SVHC: Substances of Very High Concern

Top Commitment

Prevention of Environmental Pollution by Plant
Sustainable Value
Creation Process

GlobalPolicyTo comply with laws and regulations and mitigate the risks of environmental pollution in its

Our Stance on
CSRbusiness activities, the Calsonic Kansei Group is engaged in measures to reduce emissions ofvolatile organic compounds (VOCs) at its global locations, responses to the PRTR Act and PCBs,
and the clean-up and prevention of contamination of water quality, air, soil, and groundwater.
Through the implementation of the ISO 14001 environmental management systems, our global

Stakeholder
Engagement

Governancelocations are striving to achieve their targets and make continuous improvements.

Results of Overseas Countermeasures to Environmental
Contamination from Business Activities
GlobalActivities

Social Initiatives

Water Quality
We have set our voluntary management targets (80% of the regulatory value) and are conducting
stricter management than required by the regulations. In this way, we are contributing to theprotection of aquatic life.

Environmental
Initiatives

AtmosphereWe have reduced our sulfur oxide (SOx) and CO2 emissions by switching to natural gas for

Key CSR
Indicators andResults

combustion energy and reducing energy consumption through the adoption of energy-saving
activities.
Clean-up of soil and groundwater and prevention of contamination

About Our
ReportingRegarding plants where contamination has already occurred, we are addressing all current
situations, including preventive measures and conducting thorough investigations.
We are already conducting investigations of the soil in each area, including at Group companies.
These investigations are also undertaken when new companies join the Group.

132

IndexEnvironmental Contamination Incidents and Grievances
Rules for collecting data on overseas environmental incidents were established in Fiscal 2011, andsuch data is managed in a way to ensure prompt action.
There was one environmental incident in Fiscal 2017, involving the discharge of waste water thatTop Commitment

exceeded legal standards in Thailand.
PCB

Sustainable Value
Creation Process

We have implemented appropriate management for electrical devices containing PCBs, considering
them as waste products for special management in accordance with regulations. PCBs have beenscheduled for prompt disposal, and disposal is being progressively completed at each location.

Our Stance on
CSR

Stakeholder
Engagement

Results of Reductions of VOCs (volatile organic compounds)
ReleasedJapan
Activities
In Fiscal 2017, the Calsonic Kansei Group achieved a reduction in VOC use of 82.6%comparedto ﬁscal 2000, against a mid-term target of a 30% reduction. However, the volume of use

Governanceincreased from the previous ﬁscal year to 129 tonnes, failing to meet the single-year target.

Achievement status

Social Initiatives

Management
item

VOC usage(t)

FY2000 (baseyear) results

FY2016
results

739

FY2017
results

119

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

133

129

Comparison
with FY2000
82.6%
reduction

Comparison with theprevious year
8.2% increaseIndexResults of PRTR Act ComplianceJapan
Activities

Top Commitment

PRTR-Regulated Substance Amounts Used, Released, andTransferred
Sustainable Value
Creation Process[t]

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Amount used (t)Amount released/transferred(t)(Fiscal year)

Environmental
Initiatives

Amounts of PRTR-Regulated Substances Released andTransferred

Key CSR
Indicators andResults

About Our
ReportingToluene50%

Xylene15%

Ferric chloride

13%

Other

22%

134

IndexPrevention of Environmental Pollution by Purchased
Items
Top Commitment

GlobalPolicySustainable Value
Creation Process

The Calsonic Kansei Group established the Calsonic Kansei Green Procurement Guidelines,
under which we conﬁrm the chemical substances used in purchased items and the level ofenvironmental management carried out by our suppliers.

Our Stance on
CSR

Stakeholder
Engagement

Protection of Biodiversity

Japan
Governance

Activities
In the city of Saitama, where the R&D center and headquarters are located, we have donated to
the Saitama Trust Campaign and are participating in conservation activities in protected areas, as
initiatives for the protection of biodiversity in the region.

Social Initiatives

Social Contribution Activities
Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting135

IndexTop Commitment

Environmental Burden Data (Material Flow)

No mark = Calsonic Kansei Corporation and group companies in Japan and overseas● mark = Calsonic Kansei Corporation and group companies in Japan

Input
Sustainable Value
Creation Process

Total rawmaterials
178,697 t●60,576 t

Steel materials
54,638 t●20,675 t

Nonferrous metalmaterials
56,072 t●18,311 t

Resin materials
67,278 t●21,123 t

Our Stance on
CSR
Raw materials

Other
709 t
●468 tStakeholder
Engagement

Total energy

Electricity

5,219,177 GJ

456,570 MWh●2,045,276 GJ●176,509 MWh

Kerosene

Town gas

Low sulfur
A-fuel oil
842 kL●842 kL

Light oil
50 kL
●50 kL

Governance
Energy145 kL

LPG
4,239 tGasoline●145 kL●1,986 km3●3,015 t

93 kL●93 kL

Total water

Water supply

Industrial water

Groundwater

1,246 km3

774 km3

142 km3

329 km3●600 km3●273 km3●7 km3●320 km3

9,118 km3

Social Initiatives

Water

Environmental
Initiatives

Total chemical
substances

Key CSR
Indicators andResults

Chemical
substances●233 tAbout Our
Reporting136

Calsonic Kansei GroupIndex

Top Commitment
Press

Welding

Resin molding

Painting

Machining

Assembly

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

OutputGovernanceReusablematerials
36,100 t
Recycling●13,726 t

Waste fordisposal0t●0 tSocial Initiatives
CO2
209,500 t-CO2

Environmental
Initiatives

Key CSR
Indicators andResults

Greenhousegases●83,533 t-CO2

SOx

NOx

Soot dust●0.62 t●2.92 t●0.08 tAir pollution
emissions

Discharged water

About Our
ReportingWater
contamination
emissions874 km3

BOD●8.9 t●458 km3

Toluene/xylene

Other

●50 t

●55 t

Chemical
substances137IndexEnvironmental Accounting

Japan

Top Commitment

Overseas

The Calsonic Kansei Group is working to introduce environmental accounting at our global
locations, to gauge the costs and eﬀects of environmental activities, as well as the economic
Sustainable Value
Creation Processeﬀects of such activities.

Environmental Protection Costs
Investments and expenditures related to our environmental activities are measured in monetary

Our Stance on
CSR

units.
(Unit: million yen)
Investment

Expenditures

Classiﬁcation

Stakeholder
Engagement

1. Costs incurred within each business area for the
reduction of environmental footprint

FY2016FY2017

Changes

402

906

504

531

552

21

91

167

76

209

216

7

Global environmental
protection costs

Cost of energy saving,
resource saving, andphasing out ofenvironmentallyhazardous substances

278

739

461

39

34

(5)

Resource recycling costs

Costs of reduction,
recycling, and disposal ofindustrial waste

33

0

(33)

283

302

19

2. Upstream/downstream

Costs of controlling
environmental burdens
occurring upstream/
downstream across ourbusiness areas

0

0

0

28

25

(3)

41

17

(24)

193

186

(7)

399

399

0

5,026

5,249

223

0

0

0

9

9

0

1

0

(1)

27

28

1

843

1,322

479

5,814

6,049

235

Environmental
Initiatives

3. Management activity

About Our
Reporting

Changes

Costs of prevention of
air, water, soil, andnoise pollution

costs

Key CSR
Indicators andResults

FY2017

Pollution prevention
costs

GovernanceSocial Initiatives

FY2016costs

4. Environmental
research anddevelopment costs

Costs of establishment,
certiﬁcation and operationof environmental
management systems,
and human resource
costs associated withenvironmental policy
organizations

Costs of development of
eco-friendly products,
and of research anddevelopment related toreducing environmental
burdens

5. Social activities costs

Costs of supporting
environmental
conservation activities
conducted by local
citizens and groups

6. Costs of responses to

Costs of restoration of
the natural environmentand compensation forenvironmental damage

environmental damage

Total* Parentheses indicate a decrease from the previous ﬁscal year.

138

Environmental Protection Eﬀects
Index

Environmental burdens are measured from the dual perspectives of their quantitative eﬀects,
which is the evaluation of the quantity of reductions of environmentally hazardous substances,and economic eﬀects, which is the evaluation of their eﬀects in monetary terms.

Top Commitment

Economic eﬀects are calculated as the value of cost savings as a result of environmental
activities (concrete eﬀects of energy-saving activities, etc.) and total revenue resulting fromenvironmentally friendly activities (revenue from the sale of valuable resources, etc.)

Sustainable Value
Creation Process

Classiﬁcation

FY2016FY2017

Eﬀects

1. Environmental conservation eﬀects related to resources used in business operations(quantity)

Our Stance on
CSR
QuantitativeeﬀectsTotal energy use after conversion to CO2 (t)211,899

209,500(2,399)Water Use (km3)

1,377

1,246

(131)

2. Environmental protection eﬀects related to waste for disposal produced in business
operations (quantity)

Stakeholder
Engagement

Total volume of waste (t)37,55036,100(1,450)Volume recycled (t)37,527

36,100(1,427)

Volume disposed (landﬁll volume) (t)

23

0

(23)

PRTR substances (release/transfer) (t)

122

117

(5)

16,683

10,741(5,942)

Reduced costs through energy saving

125

111

(14)

Reduced costs related to water use

1

4

3

Revenue from sales of eco-friendly products

15,4989,477(6,021)

Revenue from sales of valuable resources

1,059

1,149

90

3. Economic eﬀects of environmental protection policies

Governance(million yen)
Economic
eﬀectsSocial Initiatives* Parentheses indicate a decrease from the previous ﬁscal year.

Environmental
Initiatives

Basic Details
1. Target Period:
FY2016 (April 2016 – March 2017)

Key CSR
Indicators andResults

FY2017 (April 2017 – March 2018)
2. Scope of Statistics:
Calsonic Kansei Corporation

About Our
ReportingGunma Plant
Oppama Plant
Yoshimi Plant
Kodama Plant
Testing Research Center

R&D

Center, Headquarters
Group Companies in Japan
Calsonic Kansei Kyusyu Corporation
Calsonic Kansei Fukushima
Corporation

139

Calsonic Kansei Tochigi Corporation
Calsonic Kansei Utsunomiya Corporation
Index

Calsonic Kansei Iwate Corporation
Calsonic Kansei Yamagata Corporation
Tokyo Radiator Mfg. Co., Ltd.

Top Commitment

Overseas Group Companies
America
Calsonic Kansei North America, Inc.

Sustainable Value
Creation Process

Calsonic Kansei Mexicana, S.A. de C.V
EuropeCalsonic Kansei UK Limited
Calsonic Kansei Sunderland Limited

Our Stance on
CSR

Calsonic Kansei Spain, S.A.
Calsonic Kansei Romania S.R.L.
Asia

Stakeholder
Engagement

Daihan Calsonic Corporation.
Calsonic Kansei Korea Corporation
Calsonic Kansei China companies
Calsonic Kansei (Thailand) Co., Limited
Calsonic Kansei (Malaysia) Sdn. Bhd.

GovernanceCalsonic Kansei Motherson Auto Products Limited
3. Statistical Methods:

Social Initiatives

As a rule, we calculate costs in compliance with the Environmental Reporting Guidelines issued
by the Ministry of the Environment of Japan.

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting140

IndexTop Commitment

Environmental Action Plan (Fiscal 2016 Plan and Results)

Japan

Overseas

Activities
Under the Calsonic Kansei Green Program 2016 (CKGP2016), the Group’s mid-term
Sustainable Value
Creation Processenvironmental program implemented between FY2011 and FY2016, the Calsonic Kansei Group
activates the PDCA cycle and conducts activities based on an Environmental Action Plan that sets
out the concrete actions for the following fiscal year. To strengthen group-wide environmental
efforts, the Global Environment Management Meeting and Environmental Energy Committee

Our Stance on
CSR

Meeting are convened twice a year to exchange information on the implementation status of the
Action Plan and achievements.
※New Medium-term Environemental Plan is expected to be announced at the end of September

Stakeholder
Engagement

Key issue
Promotion ofEnvironmental
Management

GovernanceSocial Initiatives

Mid-Term Action Plan

FY2016 Results

Improve quality of ISO
14001 activities

Conducted cross-auditing
between plants at each sitein Japan
Conducted environmental
audits at overseas locations
Transitioned to ISO
14001:2015 system at threeglobal sites

Enhance the CalsonicKansei Group
Environmental Management
Promotion System

Enhancement andpromotion of Global
Environment Management
Meeting
Improved emergency
contact network in case ofenvironmental incidents
within CKG (horizontal rollout rate: 100%)

Clean-up of soil andgroundwater andprevention ofcontamination

Maintain and expand soil
and groundwater
conservation efforts

Thoroughly implemented
countermeasures at plants
with past contamination
records; thoroughly
implemented preventive
measuresThorough Discharged
Water Management

Set voluntary Discharged
Water quality targets of 80%
of regulatory values
Conduct monthly monitoringof wastewater quality values
at each site and comply withregulatory values

Achieved 100% compliancewith regulatory values

Fulfillment rate ofcommunity partnership
activities (actual assessmentscore/base assessmentscore): 100%

Fulfillment rate ofcommunity partnership
activities: 100%
Conducted environmental
risk communication withlocal residents, businesses,
and government
Conducted clean-ups ofareas around business sites
Welcomed students fromlocal elementary, junior andsenior high schools for plant
tours and internships, andconducted travelingclassrooms, etc.

Promotion of acquisition and maintenanceof ISO 14001 certification for all plants on
a Group Global basis

Strengthening of environmental
management promotion systems on aGroup Global basis

Environmental
Initiatives

Key CSR
Indicators andResults

FY2016 Plan

Enhancementofenvironmentalrisk
management

About Our
ReportingCommunity
partnership
activities

Dissemination of
information on
environmental
activities undertaken
by production
divisions andenhancement ofactivities to gain thetrust of local
communities(maintain fulfillment
rate at 100%)

141

Key issue

Mid-Term Action Plan

FY2016 Plan

FY2016 Results

Green
partnership
activities

Collaboration withpartner companies toengage in the three
Environmental Clean
Chain Activities (CO2emissions reduction,effective use ofresources, andreduction ofenvironmentallyhazardous
substances) andenhancement ofactivities (maintainfulfillment rate at
100%)

Fulfillment rate of green
partnership activities (actual
assessment score/baseassessment score): 100%

Green partnership fulfillment
rate: 100%
Conducted emergency
response training for partnercompanies
Implemented training
sessions on prevention ofenvironmental incidents

Reduction of
CO2 emissions(Reduction ofenergyconsumption)• Reduction of CO2
emissions(CKGP2016)
Reduce CO2 emission
intensity (CO2emission intensity =total emissions/sales
revenue) by thepercentages listed
below by FY2016
Japan: 18.5%
reduction comparedto FY2005
Americas, Europe,and Asia: 13.6%
reduction comparedto FY2005

Reduction of CO2 emission
intensity
Japan: 2.5% reduction
compared to FY2015(18.5% reduction comparedto FY2005)
Americas, Europe, and Asia:
2.5% reduction compared to
FY2015 (13.6% reduction
compared to FY2005)

Japan: 3.8% reduction
compared to FY2015(32.3% reduction comparedto FY2005)
Americas, Europe, and Asia:
1.2% reduction compared to
FY2015 (26.7% reduction
compared to FY2005)• Reduction of waste(waste for disposal +valuable resources)(CKGP 2016)
Reduce waste
generation intensity(total waste/sales
revenue) by thepercentages listed
below by FY2016
Japan: 18.1%
reduction comparedto FY2005
Americas, Europe,and Asia: 6.0%
reduction comparedto FY2010

Reduce waste generation
intensity
Japan: 2.0% reduction
compared to FY2015(18.1% reduction comparedto FY2005)
Americas, Europe, and Asia:
1.0% reduction compared to
FY2015(6.0% reduction comparedto FY2010)

Japan: 1.1% increase
compared to FY2015(26.1% reduction comparedto FY2005)
Americas, Europe, and Asia:
2.3% reduction compared to
FY2015 (18.8% reduction
compared to FY2010)• Zero Landfill: Zerolandfilled waste(CKGP 2016)
Reduce landfill ratio(landfill volume/waste
volume) by FY2015
Overseas: landfill ratioof 0.2%

Maintain zero landfill ratio
overseas

Overseas landfill ratio of 0%• Reduction of use ofenvironmentallyhazardous
substances (CKGP
2016)
Reduceenvironmentallyhazardous substanceand VOC use by
FY2020Japan: 30.0%
reduction comparedto FY2000

Reduce VOC use
Japan: 2.0% reduction
compared to FY2015(30.0% reduction comparedto FY2000)

Reduce VOC use
Japan: 6.4% reduction
compared to FY2015(83.9% reduction comparedto FY2000)• Reduction of wateruse (CKGP 2016)
Reduce water use
intensity (total water
consumption/sales
revenue) by thepercentages listed
below by FY2016
Japan: 21.4%
reduction comparedto FY2009
Americas, Europe,and Asia: 4.0%
reduction comparedto FY2014

Reduce water use intensity
Japan: 2.0% reduction
compared to FY2015(21.4% reduction comparedto FY2009)
Americas, Europe, and Asia:
2.0%reduction compared to
FY2015 (4.0% reduction
compared to FY2014)

Japan: 13.6% reduction
compared to FY2015(19.7% reduction comparedto FY2009)
Americas, Europe, and Asia:
7.6% increase compared to
FY2015 (2.6 % reduction
compared to FY2014)

Index

Top Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

Governance

Resource
recycling

Social Initiatives

Reduction ofEnvironmental
Burdens of
Manufacturing
Operations

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
ReportingConservationof water, air,soil, andbiodiversity

142

Key issue

Mid-Term Action Plan

FY2016 Plan

FY2016 Results

Reduce the use of VOCs invehicle cabins
Ensure compliance with
European REACH
regulations
and North American
regulations on use oforganic solvents

Continued efforts to reduceuse of VOCs in vehicle
cabins
Implemented activities tocomply with European
REACH regulations inadvance of regulations
coming into force
Adopted water soluble
materials for instrument
panel pad skin primer andpaint; expanded adoption

Disclose materials data tocustomers promptly

Implemented actions
according to customer
instructions (via IMDS)

Use of recycled materials

Radiators, condensers,
motor fansSeparation of parts withrecyclability in mind

Airconditioner ducts

Promote the development ofeasily recyclable products

Compressors, exhaustsystems

Bolt reduction activities

Airconditioning units,compressors

Design with ease ofdisassembly in mind

Cockpit modules,
airconditioning units

Prevention of global
warming (fuelefficiency/energy
efficiency)

Promote lightweight, fuelefficient, energy-efficient
products

Developed cockpit front-end
modules, high performance
climate control systems,
steering members, variablecapacity compressors for
air-conditioners, small andlightweight rotarycompressors for airconditioners, heat pump airconditioning systems, hotwater heaters, meters, builtin oil coolers, EV inverters,
EV battery controllers,
lightweight radiators, charge
air coolers, brushless
motors, and EGR coolers

Prevention of air
pollution (purificationof exhaust gas)

Promote development of
products that ensure
effective purification of
exhaust gas

Developed exhaust
manifolds, manifold
converters, and catalytic
converters (underfloor)

Noise prevention(reduction of noise
emissions)

Promote development of
products with low exhaustand noise emissions

Developed low noise
exhaust systems

Evaluation of eco-friendly products

Promote eco-friendly
product manufacturing
Promote the creation of adatabase for relevant
indicators

Disseminated information on
stance regarding indicatorsfor eco-friendly products toemployees and put
indicators into practice
Promoted LCA calculations
for eco-friendly products

Introduction of eco-friendly products onto
market (CK GX 4 T10)

Introduce three products into
the marketplace over Fiscal
2015 and 2016

Introduced one product into
the market in Fiscal 2016

Expansion of green procurement

Enhance the Green
Procurement Guidelines

Promoted activities toencourage suppliers toagree to and follow ourGreen Procurement
Guidelines

Active disclosure of information on
environmental activities

Enhance disclosure of
information on
environmental activities- Top 15 in Toyo Keizai*’s
CSR Ranking(Environmental score intransport equipment
industry)- Provided information to
CDP

Enhanced disclosure of
information on
environmental activities
Achieve Top 8 in theautomobile industry in Toyo
Keizai’s CSR Ranking(Environmental score intransport equipment
industry)
Provide information to CDP

Compliance with laws
and regulations andcustomerrequirements, andreduction andelimination of use ofregulated chemical
substances in
products(Compliance with
European ELV
Directive)(Compliance with
European REACH
regulations)(Compliance with
Tennessee’s air
pollution regulationsin North America)

Index

Top Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

Enhancementof efforts todevelopproducts that
address
environmental
issuesReduction of waste(development ofeasily recyclable
products)

Development of
Eco-friendly
Products

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
ReportingGreen
Procurement

Environmental
Communication

Download PDF

143IndexTop Commitment

Environmental Data of Manufacturing Plants in Japan

Gunma Plant
Address：132 Shin-nakano, Ora-cho, Ora-gun, Gunma
Site area：224,781m2
Buildings：64,352m2

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
ReportingMain Products：Air-conditioning units, condensers, exhaust products, metal supports

Ordinances and Agreements: Gunma Prefectural Ordinance, Ora Town Agreement,
Sewerage Act
Items Regarding
Drainage Regulations

Regulation Value

Results / Minimum

Results / MaximumpH

6.5～8.5

6.9

8.2

SS

≤ 30mg/l

5.7

22.6

BOD

≤ 20mg/l

2.9

9.6

N-Hex

≤ 3mg/l

0.9

1.4

F

≤ 8mg/l

< 0.5

1.6

Zn

≤ 2mg/l

< 0.1

0.3

P

≤ 16mg/l

0.2

0.4

N

≤ 120mg/l

0.8

2.4

Cu

≤ 3mg/l

< 0.1

Ni

-

-

-

Fe

≤ 5mg/l

< 0.1

0.2

COD

-

-

-

E. coli bacteria≤ 3,000

099

Dichloromethane≤ 0.2mg/l< 0.02

Total volume of water
discharge-

88.0(km3)

Drain field-

Discharged into a river(subsidiary stream of theTone River)

BOD average-

6.68(mg/l)

Amount of pollution
load (BOD)-

0.59(t)

Sox

-

-(t)

Nox

-

-(t)

Soot / dust

-

-(t)

CO2

-

18 (thousand tonnes)

144Index

Oppama Plant
Address：18 Natsushima-cho, Yokosuka City, Kanagawa
Site area：22,514m2
Buildings：17,434m2

Top Commitment

Main Products：Exhaust products

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Ordinances and Agreements: Kanagawa Prefectural Ordinance, Yokosuka Municipal
Ordinance, Sewerage Act
Items Regarding
Drainage Regulations

Regulation Value

Results / Minimum

Results / MaximumpH

5.8～8.6

7.7

7.9

SS

-

-

-

BOD

-

-

-

N-Hex

≤ 5mg/l

< 0.5

0.9

F

-

-

-

Zn

≤ 1.0mg/l

< 0.1

0.2

P

-

-

-

N

-

-

-

Cu

≤ 1.0mg/l

< 0.1

Ni

≤ 1.0mg/l

< 0.1

Fe

≤ 3mg/l

< 0.1

0.2

COD

-

-

-

E. coli bacteria

-

-

-

Dichloromethane

-

-

-

Total volume of water
discharge-

5.5(km )Drain field-

Sewage

BOD average--(mg/l)Amount of pollution
load (BOD)

-

-(t)

Sox

-

-(t)

Nox

-

-(t)

Soot / dust

-

-(t)

CO2

-

1 (thousand tonnes)

3

About Our
Reporting145

Index

Yoshimi Plant
Address：628 Ooaza-Kumeda, Yoshimi-machi, Hiki-gun, Saitama
Site area：141,784m2
Buildings：49,700m2

Top Commitment

Main Products：Instrument panels, center consoles

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Ordinances and Agreements: Saitama Prefectural OrdinanceItems Regarding
Drainage Regulations

Regulation Value

Results / Minimum

Results / MaximumpH

5.8～8.6

6.6

7.5

SS

≤ 90mg/l

2.4

14.8

BOD

≤ 25mg/l

< 1.0

7.7

N-Hex

≤ 5mg/l

< 1.0

F

-

-

-

Zn

-

-

-

P

≤ 8mg/l

2.8

5.8

N

≤ 60mg/l

5.9

27.5

Cu

-

-

-

Ni

-

-

-

Fe

-

-

-

COD

≤ 60mg/l

9.1

21.8

E. coli bacteria≤ 3,000

0120

Dichloromethane

-

-

-

Total volume of water
discharge-

32.6(km )Drain field-

Discharged into a river(subsidiary stream of the
Ichino River)3

BOD average-

3.68(mg/l)

Amount of pollution
load (BOD)-

0.12(t)

Sox

-

-(t)

Nox

-

0.085(t)Soot / dust-

0.0009(t)CO2-

7 (thousand tonnes)

About Our
Reporting146

Index

Kodama Plant
Address：540-7 Kyoei, Kodama-cho, Honjo City, Saitama
Site area：51,168m2
Buildings：15,838m2

Top Commitment

Main Products：Electronic control units

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Ordinances and Agreements: Saitama Prefectural Ordinance, Honjo Municipal OrdinanceItems Regarding
Drainage Regulations

Regulation Value

Results / Minimum

Results / MaximumpH

5.8～8.6

6.6

7.5

SS

≤ 60mg/l

2.0

42.0

BOD

≤ 25mg/l

2.0

10.0

N-Hex

≤ 30mg/l

< 3.0

F

-

-

-

Zn

-

-

-

P

-

-

-

N

-

-

-

Cu

-

-

-

Ni

-

-

-

Fe

-

-

-

COD

≤ 160mg/l

8.0

43.0

E. coli bacteria≤ 3,000< 30

Dichloromethane

-

-

-

Total volume of water
discharge-

4.4(km )Drain field-

Discharged into a river(subsidiary stream of theTone River)3

BOD average-

4.17(mg/l)

Amount of pollution
load (BOD)-

0.02(t)

Sox

-

-(t)

Nox

-

-(t)

Soot / dust

-

-(t)

CO2

-

2 (thousand tonnes)

About Our
Reporting147

Index

Testing Research Center
Address：8 Sakae-cho, Sano City, Tochigi
Site area：73,829m2
Buildings：47,141m2

Top Commitment

Ordinances and Agreements: Ordinances and Agreements: Tochigi Prefectural Ordinance,
Sano Municipal Ordinance, Sewerage Act
Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Items Regarding
Drainage Regulations

Regulation Value

Results / Minimum

Results / MaximumpH

5.0～9.0

6.8

8.3

SS

≤ 600mg/l

< 1.0

292.0

BOD

≤ 600mg/l

< 1.0

261.0

N-Hex

≤ 5mg/l

< 1.0

F

-

-

-

Zn

-

-

-

P

-

-

-

N

-

-

-

Cu

-

-

-

Ni

-

-

-

Fe

-

-

-

COD

-

-

-

E. coli bacteria

-

-

-

Dichloromethane

-

-

-

Total volume of water
discharge-

47.2(km3)

Drain field-

Sewage, Misugi River

BOD average-

29.13(mg/l)

Amount of pollution
load (BOD)-

1.38(t)Sox-

0.007(t)Nox-0.025(t)Soot / dust-

0.0006(t)CO2-

8 (thousand tonnes)

About Our
Reporting148

IndexR&D Center, Headquarters
Address：2-1917 Nisshin-cho, Kita-ku, Saitama City, Saitama
Site area：33,047m2
Buildings：10,704m2

Top Commitment

Ordinances and Agreements: Ordinances and Agreements：Saitama Prefectural Ordinance,
Saitama Municipal Ordinance, Sewerage Act
Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Items Regarding
Drainage Regulations

Regulation Value

Results / Minimum

Results / MaximumpH

5.0～9.0

7.1

7.5

SS

≤ 600mg/l

110.0

292.0

BOD

≤ 600mg/l

60.4

180.0

N-Hex

≤ 30mg/l

1.7

25.1

F

-

-

-

Zn

-

-

-

P

≤ 32mg/l

1.4

5.5

N

≤ 240mg/l

4.8

14.6

Cu

-

-

-

Ni

-

-

-

Fe

-

-

-

COD

-

-

-

E. coli bacteria

-

-

-

Dichloromethane

-

-

-

Total volume of water
discharge-

29.2(km3)

Drain field-

Sewage

BOD average-

116.76(mg/l)

Amount of pollution
load (BOD)-

3.41(t)

Sox

-

-(t)

Nox

-

0.378(t)Soot dust

-

-(t)

CO2

-

2 (thousand tonnes)

About Our
Reporting149

IndexCalsonic Kansei Kyusyu Corporation (Headquarters and Usa Plant)
Address：111 Ooaza-Waki, Usa City, Oita
Site area：99,146m2
Buildings：19,427m2

Top Commitment

Main Products：Instrument panels

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Ordinances and Agreements: Oita Prefectural Ordinance, Usa Municipal Agreement
Items Regarding
Drainage Regulations

Regulation Value

Results / Minimum

Results / MaximumpH

6.0～8.6

6.9

7.8

SS

≤ 60mg/l

2.0

25.0

BOD

≤ 60mg/l

< 1.0

1.0

N-Hex

≤ 2mg/l

< 1.0

F

-

-

-

Zn

-

-

-

P

-

-

-

N

-

-

-

Cu

-

-

-

Ni

-

-

-

Fe

-

-

-

COD

≤ 60mg/l

4.0

11.0

E. coli bacteria

-

-

-

Dichloromethane

-

-

-

Total volume of water
discharge-

1.3(km )Drain field-

Discharged into a river(Yorimo River)3

BOD average-

1.00(mg/l)

Amount of pollution
load (BOD)-

0.0013(t)Sox-0.355(t)Nox-1.038(t)Soot / dust-

0.0418(t)CO2-

7 (thousand tonnes)

About Our
Reporting150

IndexCalsonic Kansei Kyusyu Corporation (Nakatsu Plant)
Address：150-3 Aza-Inumaru, Nakatsu-city, Oita
Site area：48,646m2
Buildings：17,803m2

Top Commitment

Main Products：Air-conditioning units, radiators, exhaust products

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Ordinances and Agreements: Oita Prefectural Ordinance, Nakatsu Municipal Agreement
Items Regarding
Drainage Regulations

Regulation Value

Results / Minimum

Results / MaximumpH

6.0～8.5

6.6

7.5

SS

≤ 30mg/l

< 1.0

14.0

BOD

≤ 30mg/l

1.3

9.7

N-Hex

≤ 5mg/l

< 0.5

1.1

F

-

-

-

Zn

-

-

-

P

≤ 8mg/l

0.27

3.2

N

≤ 60mg/l

3.0

21.0

Cu

-

-

-

Ni

-

-

-

Fe

-

-

-

COD

-

-

-

E. coli bacteria≤ 3,0000

1.0

Dichloromethane

-

-

-

Total volume of water
discharge-

7.8(km )Drain field-

Discharged into river(Inumaru River)3

BOD average-

3.96(mg/l)

Amount of pollution
load (BOD)-

0.03(t)Sox-

0.257(t)Nox-0.735(t)Soot / dust-

0.0175(t)CO2-

9 (thousand tonnes)

About Our
Reporting151

IndexCalsonic Kansei Fukushima Corporation
Address：5-1 Sumiyoshi, Nihonmatsu City, Fukushima
Site area：68,400m2
Buildings：13,800m2

Top Commitment

Main Products：Meters, tank units, various sensors, switches

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Ordinances and Agreements: Fukushima Prefectural Ordinance, Nihonmatsu Municipal
Ordinance
Items Regarding
Drainage Regulations

Regulation Value

Results / Minimum

Results / MaximumpH

5.8～8.6

7.2

7.6

SS

≤ 70mg/l

< 1.0

8.8

BOD

≤ 25mg/l

< 1.0

2.5

N-Hex

≤ 5mg/l

< 0.5

F

-

-

-

Zn

-

-

-

P

-

-

-

N

-

-

-

Cu

-

-

-

Ni

-

-

-

Fe

-

-

-

COD

-

-

-

E. coli bacteria≤ 3,000

0

Dichloromethane--

Total volume of water
discharge-

21.7(km3)

Drain field-

Discharged into a river(subsidiary stream of the
Abukuma River)

BOD average-

1.13(mg/l)

Amount of pollution
load (BOD)-

0.02(t)

Sox

-

-

Nox

-

0.19(t)Soot / dust-

0.0084(t)CO2-

5 (thousand tonnes)

About Our
Reporting152-

IndexTokyo Radiator Mfg Co., Ltd.
Address：2002-1 Endo, Fujisawa City, Kanagawa
Site area：88,254m2
Buildings：41,004m2

Top Commitment

Main Products：Radiators, EGR coolers, oil coolers, intercoolers, fuel coolers, oil pans, vacuum tanks, fueltanks, SCR tanks, etc.

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Ordinances and Agreements: Kanagawa Prefectural Ordinance, Fujisawa Municipal
Greening Agreement
Items Regarding
Drainage Regulations

Regulation Value

Results / Minimum

Results / MaximumpH

5.8～8.6

7.1

7.5

SS

≤ 90mg/l

< 1.0

22.8

BOD

≤ 60mg/l

4.8

14.8

N-Hex

≤ 5mg/l

< 0.5

3.5

F

≤ 8mg/l

0.4

2.4

Zn

≤ 2mg/l

< 0.1

0.1

P

-

-

-

N

-

-

-

Cu

-

-

-

Ni

-

-

-

Fe

-

-

-

COD

≤ 60mg/l

9.0

20.0

E. coli bacteria

-

-

-

Dichloromethane

-

-

-

Total volume of water
discharge-

190.7(km )Drain field-

Discharged into a river(subsidiary stream of the
Hikiji River)3

BOD average-

9.67(mg/l)

Amount of pollution
load (BOD)-

1.84(t)

Sox

-

-(t)

Nox

-

0.465(t)Soot / dust-

0.0081(t)CO2-

11 (thousand tonnes)

About Our
Reporting153

IndexCalsonic Kansei Tochigi Corporation (Sano Plant)
Address：765 Aza-Ishihara Takahagi-cho, Sano City, Tochigi
Site area：12,012m2
Buildings：5,670m2

Top Commitment

Main Products：Resin molded parts, intake, motor fans, liquid tanks, relief valves

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Ordinances and Agreements: Tochigi Prefectural Ordinance, Sano Municipal OrdinanceItems Regarding Drainage
Regulations

Regulation Value

ResultspH

5.0～9.0

7.2

SS≤ 600mg/l

5.2

BOD

≤ 600mg/l

1.5

N-Hex

≤5mg/l

< 1.0

F

-

-

Zn

-

-

P

-

-

N

-

-

Cu

-

-

Ni

-

-

Fe

-

-

COD

-

-

E. coli bacteria--

Dichloromethane--

Total volume of water discharge-

2.3(km3)

Drain field-

Discharged into a river (subsidiarystream of the Misugi River)

BOD average-

1.50(mg/l)

Amount of pollution load (BOD)-

0.0034(t)

Sox

-

-(t)

Nox

-

-(t)

Soot / dust

-

-(t)

CO2

-

2 (thousand tonnes)

About Our
Reporting154

IndexCalsonic Kansei Tochigi Corporation (Itakura Plant)
Address：7 Aza-Futoi, Ooaza-Ookura, Itakura-cho, Ora-gun, Gunma
Site area：16,500m2
Buildings：4,161m2

Top Commitment

Main Products：Integrated switches for heating air-conditioners, controls, electronic circuits

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Ordinances and Agreements: Gunma Prefectural Ordinance, Itakura Town Agreement
Items Regarding Drainage
Regulations

Regulation Value

Results

pH

5.8～8.6

6.1

SS≤ 15mg/l

17.0

BOD

≤ 15mg/l

5.0

N-Hex

≤ 3mg/l

< 3.0

F

-

-

Zn

-

-

P

-

-

N

-

-

Cu

-

-

Ni

-

-

Fe

-

-

COD

-

-

E. coli bacteria≤ 1,000< 30

Dichloromethane--

Total volume of water discharge-

5.1(km3)

Drain field-

Discharged into a river (subsidiarystream of the Watarase River)

BOD average-

5.00(mg/l)

Amount of pollution load (BOD)-

0.03(t)

Sox

-

-(t)

Nox

-

-(t)

Soot / dust

-

-(t)

CO2

-

1 (thousand tonnes)

About Our
Reporting155

IndexCalsonic Kansei Tochigi Corporation (Tochigi Plant)
Address：144-1 Shimokoyama, Shimotsuke City, Tochigi
Site area：18,886m2
Buildings：10,497m2

Top Commitment

Main Products：Car interior resin parts, instrument panels, consoles, etc.

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Ordinances and Agreements: Tochigi Prefectural Ordinance, Shimotsuke Municipal
Agreement
Items Regarding
Drainage Regulations

Regulation Value

Results / MinimumpH

5.8～8.6

6.4

SS≤ 50mg/l

1.2

8.9

BOD

≤ 30mg/l

1.1

1.5

N-Hex

≤ 5mg/l< 0.5

F≤ 8mg/l< 0.2Zn≤ 2mg/l< 0.1

P≤ 32mg/l

4.0

N

-

-

Cu

≤ 3mg/l

< 0.1

Ni

-

-

Fe

≤ 10mg/l

< 0.1

COD

≤ 30mg/l

5.1

9.5

E. coli bacteria

-

-

-

Dichloromethane

-

-

-

Total volume of water
discharge-

7.0(km3)

Drain field-

Discharged into river(Sugata River)

BOD average-

1.30(mg/l)

Amount of pollution
load (BOD)-

0.0092(t)

Sox

-

-(t)

Nox

-

-(t)

Soot / dust

-

-(t)

CO2

-

2 (thousand tonnes)

About Our
Reporting156

Results / Maximum--

IndexCalsonic Kansei Utsunomiya Corporation
Address：11-6 Kiyohara Industrial Park, Utsunomiya City, Tochigi
Site area：66,100m2
Buildings：20,864m2

Top Commitment

Main Products：Compressors and parts for car air-conditioners

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Ordinances and Agreements: Tochigi Prefectural Ordinance, Utsunomiya Municipal
Agreement
Items Regarding
Drainage Regulations

Regulation Value

Results / Minimum

Results / MaximumpH

5.8～8.6

6.8

8.1

SS

≤ 40mg/l

1.0

5.2

BOD

≤ 20mg/l

2.2

12.1

N-Hex

≤ 5mg/l

0.5

0.7

F

-

-

-

Zn

-

-

-

P

-

-

-

N

-

-

-

Cu

-

-

-

Ni

-

-

-

Fe

-

-

-

COD

≤ 20mg/l

2.1

9.4

E. coli bacteria

-

-

-

Dichloromethane

-

-

-

Total volume of water
discharge-

1.1(km3)

Drain field-

Via the Kiyohara Industrial
Park Disposal Plant to the
Kinu River

BOD average-

6.39(mg/l)

Amount of pollution
load (BOD)-

0.01(t)

Sox

-

-(t)

Nox

-

-(t)

Soot / dust

-

-(t)

CO2

-

1 (thousand tonnes)

About Our
Reporting157

IndexCalsonic Kansei Iwate Corporation
Address：1-27-5 Tatekawame, Waga-cho, Kitakami-city, Iwate
Site area：23,410m2
Buildings：9,742m2

Top Commitment

Main Products：Compressors for car air-conditioners

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Ordinances and Agreements: Iwate Prefectural Ordinance, Kitakami Municipal Agreement
Items Regarding
Drainage Regulations

Regulation Value

Results / Minimum

Results / MaximumpH

5.8～8.6

6.4

7.5

SS

≤ 200mg/l

2.0

14.0

BOD

≤ 160mg/l

3.4

23.0

N-Hex

≤ 5mg/l

0.5

0.6

F

≤ 8mg/l

0.08

Zn≤ 2mg/l

0.035

0.057

P

≤ 16mg/l

5.6

6.5

N

≤ 120mg/l

57.0

58.0

Cu

≤ 3mg/l

0.011

0.028

Ni

-

-

-

Fe

≤ 10mg/l

0.05

0.14

COD

≤ 160mg/l

5.1

25.0

E. coli bacteria≤ 3,000

30

Dichloromethane

-

-

-

Total volume of water
discharge-

6.2(km )Drain field-

Discharged into a river(Waga River)3

BOD average-

9.95(mg/l)

Amount of pollution
load (BOD)-

0.06(t)

Sox

-

-(t)

Nox

-

-(t)

Soot / dust

-

-(t)

CO2

-

3 (thousand tonnes)

About Our
Reporting158

IndexCalsonic Kansei Yamagata Corporation
Address：190 Chuo Industrial Park, Sagae City, Yamagata
Site area：10,616m2
Buildings：5,077m2

Top Commitment

Main Products：Aluminum die casting, parts processing

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Ordinances and Agreements: Yamagata Prefectural Ordinance, Sagae Municipal OrdinanceItems Regarding
Drainage Regulations

Regulation Value

Results / Minimum

Results / MaximumpH

5.8～8.6

6.8

7.5

SS

≤ 200mg/l

1.6

34.8

BOD

≤ 160mg/l

1.6

5.1

N-Hex

≤ 5mg/l

< 0.5

0.5

F

-

-

-

Zn

-

-

-

P

-

-

-

N

-

-

-

Cu

-

-

-

Ni

-

-

-

Fe

-

-

-

COD

-

-

-

E. coli bacteria

-

-

-

Dichloromethane

-

-

-

Total volume of water
discharge-

15.6(km3)

Drain field-

Sagae river

BOD average-

3.53(mg/l)

Amount of pollution
load (BOD)-

0.06(t)

Sox

-

-(t)

Nox

-

-(t)

Soot / dust

-

-(t)

CO2

-

4 (thousand tonnes)

About Our
Reporting159

Index

Key CSR Indicators and Results
Key CSR Issues and KPIs

Top Commitment

Sustainability Data
Sustainable Value
Creation Process

Our Stance on
CSR

CKJ=CKJ

J=JapanCategory

Item

Organizational
Governance

Governance

Stakeholder
Engagement

O=Overseas ☆=External
KPI

FY2015
actual

FY2016
actual

FY2017
actualBoundary

Independent
outside directors

persons

1

2

1

CKJ

Outside auditors

persons

2

2

0

CKJ

Ratio ofemployment ofpeople withdisabilities

%

1.93

2.07

1.99

CKJ

Ratio of female
managers

%

1.9

2.3

2.4

CKJ

Number of
female directors

persons

0

0

0

CKJ

Supply chain

Supply chain due
diligencecompanies

●

0

9

225

☆/CKJ/J/O

Conflict
minerals

Number ofcompanies
surveyed for
conflict minerals(%)

companies(%)＊●

285 (99)284 (99)

211 (99)

CKJ/J

Ratio of female
employees

%

7.90

9.11

9.84

CKJ

Average years ofservice (males)

years

19

18.1

CKJ

Average years ofservice (females)

years

17.5

15.4

CKJ

Number and ratioof union
members

persons
(%)

2,959
(100)

3,075
(100)

3,257
(100)

CKJ

Number of newgraduate recruits(males)persons

43

77

72

CKJ

Number of newgraduate recruits(females)persons

12

20

13

CKJ

Annual hours
training per
employee

hours/
10,000
JPY

―

13.5

15.4

CKJ

Diversity

Human Rights

Governance

Unit

●

Social Initiatives
Labor
Practices

Environmental
Initiatives
Employeedata

Key CSR
Indicators andResults

About Our
ReportingHuman
resourcesdevelopment

160

Category

Item

Index

Top Commitment

Sustainable Value
Creation Process

Work stylereforms

Our Stance on
CSR

Stakeholder
Engagement
Workplacehealth andsafetyGovernanceSocial Initiatives
Climatechange action

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

Unit

Environmental
destruction
prevention

CSR
procurement

FY2015
actual

FY2016
actual

FY2017
actualBoundary

167

198

168

CKJ

73

77

83

CKJ

Number of retired
employees rehired

persons

Percentage ofannual leave
taken

%

Number of
employees who
took childcare
leavepersons

6

24

―

CKJ

Number of
employees who
took maternity
leave (%)%―

6(100)

19(100)

CKJ

Average hours
overtime/month

hours

19.3

22.7

22.1

CKJ

Number of
employees who
took childcare
leave (males)

persons

―

1

0

CKJ

Number of
employees who
took childcare
leave (females)

persons

―

13

14

CKJ

Number of
employees who
took nursing careleavepersons

0

1

1

CKJ

Ratio of lost-time
injury accidents

%

1.88

1.46

1.42

CKJ/J/OJ –29.6

J –32.3

J –31.2

CKJ/J

O –27.6

O –26.7

O –21.1

O●●

Percentage
reduction of
production sector
CO2 emissions(Japan andoverseascompared to
FY2005)%Percentage
reduction oflogistics sector
CO2 emissions(compared to
FY2010)

%

●

–34.9

–28.6

–30.3

CKJ/J

Percentage
reduction of
office sector CO2
emissions(compared to
FY2010)

%

●

–6.1

–8.0

–3.8

CKJ/J

J –27.0

J –26.1

J –24.8

CKJ/J

O –16.9

O –18.8

O –16.9O

J –7.0J –19.7

J –31.8

CKJ/J

O –9.5O –2.6O -1.0O

Percentage
reduction ofwaste(Japan comparedto FY2005,
overseascompared to
FY2010)

Environment

KPI

%

●

●

Percentage
reduction ofwater use
(Japan comparedto FY2009,
overseascompared to
FY2014)%

Percentage
reduction of
VOCs (volatileorganic
compounds)(compared to
FY2000)

%

●

–84.9

–83.9

–82.6

CKJ/J

Landfill ratio

%

●

0.17

0.0

0.0

O

Green
purchasing(percentage ofagreements
obtained fromnew accounts)

%

●

100

100

100

CKJ/J/O

161●

Category

Item
Number ofsignificant
compliance issue
occurrences

Index

Fair Operating
Practices

Compliance

Sustainable Value
Creation Process

Stakeholder
Engagement

Governance

KPI

FY2015
actual

FY2016
actual

FY2017
actualBoundary

cases

●

0

1

0

CKJ/J/O

●

―

100

100

CKJ/J/O

Percentage ofCode of Conduct
education
undertaken andpledges collected

Top Commitment

Our Stance on
CSR

Unit

ConsumerIssuesCommunity
Involvement
andDevelopment

CustomerissuesSocialcontribution
activities

Number ofcompliancecommendations

cases

●

350

416

733

CKJ/J/O

Number ofwhistleblowing
cases

cases

●

309

312

347

CKJ/J/O

Percentage of
employees
receiving
Information
security
education

%

●

99

100

100

CKJ/J/O

Customersatisfaction

%

●

3.35

3.36

3.43

CKJ/J/O/☆

Total spending onsocialcontribution
activities

Yen●

9,615,000

10,800,000

19,604,000

CKJ

Activities tosupport children,
who are society’s
future (total
number of Team
SKETT
participants)

persons

262

283

395

CKJ/J

* Percentage of value of all purchases from suppliers accounted for by listed companies
As of March 31, 2018

Social Initiatives

Download PDF

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting162

IndexEnvironmental Action Plan and Results
Environmental Data of Manufacturing Plants in Japan
Employee Data

Top Commitment

Sustainable Value
Creation Process

Third-party Recognition of CSR Initiatives
The CSR initiatives of the Calsonic Kansei Group have received a high level of recognition fromresearch institutions and other third-party organizations both in Japan and overseas.

Our Stance on
CSR

Stakeholder
Engagement

In FY2016, the Group was certified by the Minister of Health, Labour and Welfare (Japan) as an
Governance“Eruboshi (Level 3)” company, the highest level of “Eruboshi” certification under the Act on
Promotion of Women’s Participation and Advancement in the Workplace.

Social Initiatives

Environmental
Initiatives

In FY2015, the Ministry of Health, Labour and Welfare (Japan) awarded the Group Kurumin (1Star) certification, a certification given to companies with business plans as general business
operators that meet certain requirements under the Act on Advancement of Measures to Support

Key CSR
Indicators andResults

Raising Next-Generation Children.

About Our
Reporting

The Saitama Prefectural Government (Japan) is pursuing a Saitama Womenomics Project, whichaims to use the power of women to invigorate the prefectural economy. As part of this project, it
has implemented a certification scheme for “companies that practice diverse working styles.”Under this scheme, the Prefectural Government certifies companies that are undertaking a variety
of initiatives to support their employees in balancing work and raising children. Calsonic Kansei
was certified as a “Gold Plus” company in 2012, a certification that is valid for five years.

163

IndexTop Commitment

CDP is an international non-profit organization, established in London in 2000, which calls on
companies and municipalities around the world to disclose their environmental performance data
Sustainable Value
Creation Process

based on requests from investors, for use by rating agencies and policy decision-makers.
Calsonic Kansei Corporation has disclosed information to the CDP Climate Change and Water
surveys, and received a B ranking for both surveys in 2017.

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting164

IndexAbout Our Reporting

Report Scope and Structure
Top Commitment

The Calsonic Kansei Group published the first Sustainability Report in 2014, reporting on our ideas
and various initiatives as a tool for communicating with stakeholders and as part of our efforts torelease information about our Corporate Social Responsibility (CSR) activities. The report isSustainable Value
Creation Process

published in Japanese and English.
Since 2017, we have compiled detailed information to communicate information in a timely mannerand to provide our stakeholders with better access to the information they require.
We have also produced a summary version of the report in booklet form. The booklet provides a

Our Stance on
CSR

digest of the contents of the full report, to familiarize even first-time readers with the CalsonicKansei Group’s sustainability endeavors.
A new feature in the Sustainability Report 2018 is the inclusion of the Calsonic Kansei Group’s
Sustainable Value-Creation Process, which integrates the concept of sustainability into

Stakeholder
Engagement

management and creates new value. Together with the new Medium-term Business Plan, thereport clarifies our contributions to the SDGs in our domains of focus, to give readers a deeper
understanding of the relationship between business and sustainability.

GovernanceApplicable Scope
Calsonic Kansei Corporation and Group companies

Social Initiatives

Applicable Term
Mainly Fiscal 2017 (April 1, 2017 – March 31, 2018)

Environmental
Initiatives

Publication Date
June 2018 (previous report: September 2017; next report: September 2019 (scheduled) )Key CSR
Indicators andResults

Reference Guidelines
GRI Sustainability Reporting Standards

About Our
Reporting

Environmental Reporting Guidelines of the Ministry of the Environment of Japan

Approvals for various general rules related to environment,
society, and management
Calsonic Kansei is in agreement with the initiatives laid out in policies such as the UN International
Bill of Human Rights, the UN Guiding Principles on Business and Human Rights, the UN Global
Compact, the ILO Declaration on Fundamental Principles and Rights at Work, ISO 26000(Guidance on social responsibility) and the Keidanren (Japan Business Federation) Charter ofCorporate Behavior, and implements initiatives to help achieve these important management
indicators.

165

IndexThird-party Assurances and Opinions
No third-party assurances were obtained for this report.
A third-party opinion of a noted CSR and ESG (environmental, social, and governance) expert is

Top Commitment

included in the summary version of the Sustainability Report 2017 and on the website.

Contact for Questions about this Report
Sustainable Value
Creation Process

2-1917 Nisshin-cho, Kita-ku, Saitama City, Saitama 331-8501, Japan
Calsonic Kansei Corporation
CSR/Public Relations & IR Department, Global Corporate Planning Division

Our Stance on
CSR

CSR Opinion / Suggestion Form

Please Note:
Stakeholder
Engagement

This report contains forward-looking statements. Please be aware that actual results may differ
due to various industry-related factors.

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting166

IndexGRI Guideline Comparison Table

Top Commitment

GRI 102 : General Disclosures 2016
Sustainable Value
Creation Process

Our Stance on
CSR

1. Organizational profile
Disclosure
Number

Disclosure Title

102-1
Name of theorganizationa. Name of the organization.

Relevant Sections

Reason/Explanation
for Omission

Profilea. A description of the organization’s

Stakeholder
Engagement

102-2
Activities, brands,
products, andservices

activities.
b. Primary brands, products, and services,
including an explanation of any

Products

products or services that are banned incertain markets.

Governance

102-3
Location of
headquarters

a. Location of the organization’s
headquarters.

Profilea. Number of countries where theSocial Initiatives

Environmental
Initiatives

102-4
Location ofoperationsorganization operates, and the namesof countries where it has significant

Global Network

operations and/or that are relevant to
the topics covered in the report.

102-5
Ownership andlegal forma. Nature of ownership and legal form.

Profilea. Markets served, including:geographic locations where

Key CSR
Indicators andResults

102-6
Markets served

products and services are offered;
sectors served;

About Us

types of customers andbeneficiaries.

a. Scale of the organization, including:About Our
Reportingtotal number of employees;
total number of operations;net sales (for private sector
102-7
Scale of theorganization

organizations) or net revenues (forpublic sector organizations);
total capitalization (for private sector
organizations) broken down interms of debt and equity;
quantity of products or services
provided.

167

About Us
Global Network

Total capital, whichshows thebreakdown ofshareholder equity
and liabilities, andproduct/service
volumes have notbeen disclosed due
to confidentiality
restrictions with thecontrollingshareholders.

Disclosure
Number

Disclosure Title

Relevant Sections

Reason/Explanation
for Omission

Index
a. Total number of employees by
employment contract (permanent andtemporary), by gender.
b. Total number of employees by
employment contract (permanent and

Top Commitment

temporary), by region.
c. Total number of employees by
employment type (full-time and parttime), by gender.

Sustainable Value
Creation Process

102-8
Information on
employees andother workers

d. Whether a significant portion of theorganization’s activities are performed
by workers who are not employees. If
applicable, a description of the nature

Employee Data
Sustainability Report p.5

and scale of work performed by workers
who are not employees.

Our Stance on
CSR

e. Any significant variations in thenumbers reported in Disclosures 102-8a, 102-8-b, and 102-8-c (such as
seasonal variations in the tourism oragricultural industries).

Stakeholder
Engagement

f. An explanation of how the data havebeen compiled, including any
assumptions made.

a. A description of the organization’s

Governance

102-9
Supply chain

supply chain, including its main

Together with ourelements as they relate to theBusiness Partners/Basicorganization’s activities, primary

Stancebrands, products, and services.

a. Significant changes to theSocial Initiatives

organization’s size, structure,
ownership, or supply chain, including:
Changes in the location of, orchanges in, operations, including

Environmental
Initiatives

facility openings, closings, andexpansions;102-10Significant changes
to the organizationand its supply chain

Key CSR
Indicators andResults

Changes in the share capital
structure and other capitalformation, maintenance, andalteration operations (for private
sector organizations);
Changes in the location of
suppliers, the structure of the supply
chain, or relationships with

About Our
Reportingsuppliers, including selection andtermination.

168

Together with ourBusiness Partners/Basic
StanceConsideration will begiven to thedisclosure of figures
per employment
contract from Fiscal
2018.

Disclosure
Number

Disclosure Title

Relevant Sections

Reason/Explanation
for Omission

Index
Corporate GovernanceCompliance
Risk Management

Top Commitment

Environmental
102-11
Precautionary
Principle orapproacha. Whether and how the organization
applies the Precautionary Principle orapproach.

Management
Together with ourBusiness
Partners/BusinessContinuity Planning

Sustainable Value
Creation Process(BCP) for Entire Value
Chain in Preparation for
Emergencies

Our Stance on
CSR

a. A list of externally-developed economic,
102-12External initiatives

environmental and social charters,
principles, or other initiatives to which
the organization subscribes, or which itendorses.

Report Scope andStructure
Contribution to SDGs
Respecting Human
RightsStakeholder
Engagement102-13
Membership ofassociations

a. A list of the main memberships of

Stakeholder

industry or other associations, andEngagement/Participation

national or international advocacy

in Outside Organizationsorganizations.

and Other Initiatives

Governance

2. Strategy

Social Initiatives

Disclosure
Number

Disclosure Title

Relevant Sections

a. A statement from the most senior

Environmental
Initiatives

102-14
Statement fromsenior decisionmakerdecision-maker of the organization(such as CEO, chair, or equivalentsenior position) about the relevance of

Top Commitment

sustainability to the organization and its
strategy for addressing sustainability.

Key Issues in CSR

Key CSR
Indicators andResults

Activities
Risk
102-15Key impacts, risks,and opportunities

a. A description of key impacts, risks, andopportunities.

Management/Promotion
SystemEnvironmental
Management/Identification

About Our
Reportingof Key Issues Concerning
the Environment

169

Reason/Explanation
for Omission

3. Ethics and integrity
Index
Disclosure
Number

Disclosure Title

Relevant Sections

VisionTop Commitment

102-16
Values, principles,standards, andnorms of behavior

a. A description of the organization’s

Global Code of Conduct

values, principles, standards, and norms

for Calsonic Kansei

of behavior.

Group
CSR Policy

Sustainable Value
Creation Process

a. A description of internal and externalmechanisms for:

Our Stance on
CSR

102-17
Mechanisms foradvice andconcerns about
ethicsseeking advice about ethical andlawful behavior, and organizational
integrity;

Compliance/Spreading
Awareness ofCompliancereporting concerns about unethicalor unlawful behavior, andorganizational integrity.

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting170

Reason/Explanation
for Omission

4. GovernanceIndex
Disclosure Number

Disclosure Title

Relevant Sections

a. Governance structure of the

Top Commitment

Corporateorganization, including committees of102-18Governancestructure

Governance/Changes tothe highest governance body.

corporate governanceb. Committees responsible for decision-

structure to speed up

making on economic, environmental,

decision-making

and social topics.

Sustainable Value
Creation Process

Corporate

a. Process for delegating authority for
102-19Delegating authority

Our Stance on
CSR

economic, environmental, and social

Governance/Changes to

topics from the highest governancecorporate governancebody to senior executives and otherstructure to speed up

employees.

decision-making

a. Whether the organization has appointed

Stakeholder
Engagement102-20Executive-level
responsibility foreconomic,
environmental,andsocial topics

Corporate

an executive-level position or positions

Governance/Changes towith responsibility for economic,

corporate governanceenvironmental, and social topics.

structure to speed upb. Whether post holders report directly todecision-making

the highest governance body.

a. Processes for consultation between
stakeholders and the highest

Governance102-21
Consulting
stakeholders on
economic,
environmental,andsocial topics

governance body on economic,
environmental, and social topics.
b. If consultation is delegated, describe to―whom it is delegated and how theresulting feedback is provided to theSocial Initiatives

highest governance body.

a. Composition of the highest governancebody and its committees by:Environmental
Initiatives

executive or non-executive;
independence;tenure on the governance body;

Key CSR
Indicators andResults

102-22Composition of thehighest governancebody and its
committees

number of each individual’s othersignificant positions andcommitments, and the nature of the―commitments;
gender;membership of under-represented

About Our
Reportingsocial groups;
competencies relating to economic,
environmental, and social topics;
stakeholder representation.

a. Whether the chair of the highest
governance body is also an executive
102-23Chair of the highest
governance bodyofficer in the organization.
b. If the chair is also an executive officer,
describe his or her function within theorganization’s management and thereasons for this arrangement.

171―

Reason/Explanation
for Omission

Disclosure Number

Disclosure Title

Relevant Sections

Index
a. Nomination and selection processes forthe highest governance body and its
committees.
b. Criteria used for nominating andselecting highest governance body

Top Commitment
102-24
Nominating andselecting the highest
governance body

Corporate

members, including whether and how:

Governance/Changes tostakeholders (including

corporate governanceshareholders) are involved;

structure to speed up
decision-making

diversity is considered;

Sustainable Value
Creation Process

independence is considered;expertise and experience relating toeconomic, environmental, andsocial topics are considered.

Our Stance on
CSR

a. Processes for the highest governancebody to ensure conflicts of interest are
avoidedb. Whether conflicts of interest are
disclosed to stakeholders, including, as

Stakeholder
Engagementa minimum:
102-25
Conflicts of interest

Cross-board membership;―

Cross-shareholding with suppliers
and other stakeholders;
Existence of controlling

Governanceshareholder;
Related party disclosures.

a. Highest governance body’s and seniorSocial Initiatives
102-26
Role of highest
governance body insetting purpose,values, and strategy

Environmental
Initiatives

Key CSR
Indicators andResults

executives’ roles in the development,
approval, and updating of theorganization’s purpose, value or―

mission statements, strategies, policies,and goals related to economic,
environmental, and social topics.

102-27
Collective knowledgeof highest
governance bodya. Measures taken to develop andenhance the highest governance body’s
collective knowledge of economic,―

environmental, and social topics.

a. Processes for evaluating the highest
governance body’s performance withrespect to governance of economic,

About Our
Reportingenvironmental, and social topics.
b. Whether such evaluation is
independent or not, and its frequency.
102-28
Evaluating thehighest governancebody’s performancec. Whether such evaluation is a selfassessment.

―d. Actions taken in response to evaluationof the highest governance body’s
performance with respect togovernance of economic,
environmental, and social topics,
including, as a minimum, changes inmembership and organizational
practice.

172

Reason/Explanation
for Omission

Disclosure Number

Disclosure Title

Relevant Sections

Index
a. Highest governance body’s role inidentifying and managing economic,

Top Commitment

102-29Identifying andmanaging economic,
environmental, andsocial impacts

environmental, and social topics andCorporate

their impacts, risks, and opportunities –Governance/Changes toincluding its role in the implementation

corporate governanceof due diligence processes.

structure to speed upb. Whether stakeholder consultation isused to support the highest governanceRiskbody’s identification and management

Management/Promotionof economic, environmental, and social

Systemtopics and their impacts, risks, andSustainable Value
Creation Process

opportunities.

a. Highest governance body’s role in

Our Stance on
CSR

Stakeholder
Engagement

Governancedecision-making

102-30Effectiveness of risk
management
processes

102-31
Review of economic,
environmental, andsocial topics

102-32Highest governancebody’s role insustainability
reportingCorporate

reviewing the effectiveness of theGovernance/Changes toorganization’s risk management

corporate governanceprocesses for economic, environmental,

structure to speed up

and social topics.

decision-making

a. Frequency of the highest governancebody’s review of economic,
environmental, and social topics andtheir impacts, risks, and opportunities.

Corporate
Governance/Changes tocorporate governancestructure to speed up
decision-making

a. The highest committee or position thatformally reviews and approves theorganization’s sustainability report andensures that all material topics are

Key Issues in CSR
Activities

covered.

Social Initiatives
Corporate
Governance/Changes toEnvironmental
Initiatives

102-33
Communicating
critical concerns

a. Process for communicating criticalconcerns to the highest governancebody.

corporate governancestructure to speed up
decision-making
Risk
Management/Promotion
SystemKey CSR
Indicators andResultsa. Total number and nature of critical
102-34Nature and total
number of criticalconcerns

concerns that were communicated tothe highest governance body.
b. Mechanism(s) used to address andresolve critical concerns.

About Our
Reporting

173

Risk
Management/Promotion
SystemReason/Explanation
for Omission

Disclosure Number

Disclosure Title

Relevant Sections

Index
a. Remuneration policies for the highest
governance body and senior executives
for the following types of remuneration:
Fixed pay and variable pay,
including performance-based pay,

Top Commitment

equity-based pay, bonuses, anddeferred or vested shares
Sign-on bonuses or recruitment
incentive payments;

Sustainable Value
Creation Process

102-35
Remuneration
policies

Termination payments;―

Clawbacks;
Retirement benefits, including thedifference between benefit schemes
and contribution rates for the

Our Stance on
CSR

highest governance body, senior
executives, and all other
employees.
b. How performance criteria in the
remuneration policies relate to thehighest governance body’s and senior

Stakeholder
Engagement

executives’ objectives for economic,
environmental, and social topics.

a. Process for determining remuneration.
b. Whether remuneration consultants are

Governance102-36
Process fordetermining
remuneration

involved in determining remuneration
and whether they are independent ofmanagement.

―c. Any other relationships that the
remuneration consultants have with theSocial Initiatives

organization.

a. How stakeholders’ views are sought

Environmental
Initiatives

102-37
Stakeholders’involvement inremunerationand taken into account regarding
remuneration.

―b. If applicable, the results of votes on
remuneration policies and proposals.

Key CSR
Indicators andResultsa. Ratio of the annual total compensation
for the organization’s highest-paid
102-38Annual totalcompensation ratio

individual in each country of significant
operations to the median annual total―compensation for all employees(excluding the highest-paid individual)
in the same country.

About Our
Reportinga. Ratio of the percentage increase inannual total compensation for the102-39Percentage increasein annual totalcompensation ratioorganization’s highest-paid individual ineach country of significant operations to
the median percentage increase inannual total compensation for all
employees (excluding the highest-paid
individual) in the same country.

174―

Reason/Explanation
for Omission

5. Stakeholder engagement
Index
Disclosure
NumberTop Commitment

102-40
List of stakeholder
groups102-41
Collective
bargaining
agreements

Disclosure Title

Relevant Sections

a. A list of stakeholder groups engaged by
the organization.

a. Percentage of total employees coveredby collective bargaining agreements.

Stakeholder Engagement

Stakeholder
Engagement/Stakeholder
Initiatives

Sustainable Value
Creation Process
102-42
Identifying andselectingstakeholdersa. The basis for identifying and selecting
stakeholders with whom to engage

Our Stance on
CSR

Engagement/Stakeholder
Initiatives

Stakeholder
a. The organization’s approach to
stakeholder engagement, including

Stakeholder
Engagement

Stakeholder

102-43
Approach to
stakeholder
engagement

frequency of engagement by type andby stakeholder group, and an indicationof whether any of the engagement wasundertaken specifically as part of thereport preparation process.

Engagement/Stakeholder
Initiatives
Key Issues in CSR
Activities/Active
Incorporation of Expert
Recommendations
Third-party Opinion

Governancea. Key topics and concerns that have beenraised through stakeholder
engagement, including:Social Initiatives

102-44
Key topics andconcerns raised

how the organization has responded
to those key topics and concerns,
including through its reporting;the stakeholder groups that raised
each of the key topics andconcerns.

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting175

Stakeholder
Engagement/Stakeholder
Initiatives
Third-party Opinion

Reason/Explanation
for Omission

6. Reporting practice
Index
Disclosure Number

Disclosure Title

Relevant Sections

Reason/Explanation
for Omission―

The list of all
business entities
covered by the
consolidated financial
statements orequivalent
documents have notbeen disclosed due
to confidentiality
restrictions with thecontrollingshareholders.

a. A list of all entities included in the

Top Commitment

organization’s consolidated financial
102-45
Entities included in
the consolidated
financial statements

statements or equivalent documents.
b. Whether any entity included in theorganization’s consolidated financial
statements or equivalent documents is
not covered by the report.

Sustainable Value
Creation Processa. An explanation of the process for defining

Our Stance on
CSR

102-46
Defining reportcontent and topic
Boundaries

the report content and the topic

Report Scope andBoundaries.

Structureb. An explanation of how the organization
has implemented the Reporting Principles

Key Issues in CSR
Activities

for defining report content.

Stakeholder
Engagement102-47
List of material
topicsa. A list of the material topics identified in

102-48
Restatements of
informationa. The effect of any restatements ofthe process for defining report content.

information given in previous reports, and

Key Issues in CSR
Activities

Not applicable

the reasons for such restatements.

Governance102-49Changes in reportinga. Significant changes from previous
reporting periods in the list of material

Not applicable

topics and topic Boundaries.

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

102-50
Reporting period

a. Reporting period for the information

102-51
Date of most recent
reporta. If applicable, the date of the most recent

102-52
Reporting cycle

a. Reporting cycle.

102-53
Contact point forquestions regarding
the report

About Our
Reporting

Report Scope andStructureprovided.

Report Scope andStructureprevious report.

Report Scope andStructurea. The contact point for questions regarding

Report Scope andStructure

the report or its contents.

a. The claim made by the organization, if it
has prepared a report in accordance with
the GRI Standards, either:102-54Claims of reportingin accordance with
the GRI Standards‘This report has been prepared inaccordance with the GRI Standards:
Core option’;‘This report has been prepared inaccordance with the GRI Standards:
Comprehensive option’.

176

Core

Disclosure Number

Disclosure Title

Relevant Sections

Index
a. The GRI content index, which specifies
each of the GRI Standards used and lists
all disclosures included in the report.
b. For each disclosure, the content index
shall include:

Top Commitment

the number of the disclosure (for102-55
GRI content index

disclosures covered by the GRI
Standards);

GRI Guideline
Comparison Table

the page number(s) or URL(s) where

Sustainable Value
Creation Process

the information can be found, either
within the report or in other publishedmaterials;
if applicable, and where permitted, thereason(s) for omission when arequired disclosure cannot be made.

Our Stance on
CSR

a. A description of the organization’s policy
and current practice with regard toseeking external assurance for the report.

Stakeholder
Engagementb. If the report has been externally assured:
A reference to the external assurance
report, statements, or opinions. If notincluded in the assurance reportaccompanying the sustainability
report, a description of what has andGovernancewhat has not been assured and on
102-56External assurance

what basis, including the assurance
standards used, the level ofassurance obtained, and any
limitations of the assurance process;Social Initiatives

The relationship between theorganization and the assurance
provider;Whether and how the highest
governance body or senior executives

Environmental
Initiatives

are involved in seeking external
assurance for the organization’ssustainability report.

Key CSR
Indicators andResults

About Our
Reporting177

In order to enhancecredibility, it is anticipatedthat third-party assurance
will be obtained, after
FY2019.

Reason/Explanation
for Omission

IndexGRI 201：Economic Performance 2016
2. Topic-specific disclosures
Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

Reason/Explanation
for Omissionー

Not disclosed due toconfidentiality
restrictions with thecontrollingshareholders.

Top Commitment
a. Direct economic value generated anddistributed (EVG&D) on an accruals
basis, including the basic components
for the organization’s global
operations as listed below. If data are

Sustainable Value
Creation Process

presented on a cash basis, report thejustification for this decision in addition
to reporting the following basic
components:

Our Stance on
CSR

Direct economic value generated:
201-1
Directeconomic
value
generated anddistributed

Stakeholder
Engagement

revenues;
Economic value distributed:
operating costs, employee wages
and benefits, payments toproviders of capital, payments togovernment by country, andcommunity investments;
Economic value retained: ‘direct
economic value generated’ less‘economic value distributed’.
b. Where significant, report EVG&D

Governanceseparately at country, regional, or
market levels, and the criteria used for●

defining significance.

a. Risks and opportunities posed bySocial Initiatives

climate change that have the potential
to generate substantive changes inoperations, revenue, or expenditure,including:

Key CSR
Indicators andResults

Environmental

a description of the risk orEnvironmental
Initiatives
201-2
Financial
implications
and other risks
andopportunities
due to climatechangeopportunity and its classification

Management

as either physical, regulatory, orEnvironmental

other;

Accounting

a description of the impact
associated with the risk oropportunity;
the financial implications of therisk or opportunity before action istaken;

About Our
Reportingthe methods used to manage therisk or opportunity;
the costs of actions taken to
manage the risk or opportunity.

178

The information
disclosed in the
FY2018 report has
been expanded inline with Task Forceon Climate-related
Financial Disclosures(TCFD)
recommendations.

Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

Index
a. If the plan’s liabilities are met by theorganization’s general resources, theestimated value of those liabilities.
b. If a separate fund exists to pay theplan’s pension liabilities:

Top Commitment

the extent to which the scheme’s
liabilities are estimated to becovered by the assets that havebeen set aside to meet them;

Sustainable Value
Creation Process

Our Stance on
CSR

the basis on which that estimate
201-3
Definedbenefit plan
obligations
and otherretirementplans

has been arrived at;when that estimate was made.
ーc. If a fund set up to pay the plan’spension liabilities is not fully covered,explain the strategy, if any, adopted by
the employer to work towards fullcoverage, and the timescale, if any, bywhich the employer hopes to achieve
full coverage.
d. Percentage of salary contributed by

Stakeholder
Engagement

employee or employer.
e. Level of participation in retirement
plans, such as participation in
mandatory or voluntary schemes,
regional, or country-based schemes,or those with financial impact.

Governance●a. Total monetary value of financial
assistance received by theorganization from any government
during the reporting period, including:Social Initiatives

tax relief and tax credits;
subsidies;
investment grants, research andEnvironmental
Initiatives

Key CSR
Indicators andResults

development grants, and otherrelevant types of grant;
201-4
Financialassistancereceived fromgovernment

awards;ーroyalty holidays;
financial assistance from Export
Credit Agencies (ECAs);
financial incentives;
other financial benefits received or
receivable from any government

About Our
Reportingfor any operation.
b. The information in 201-4-a by country.
c. Whether, and the extent to which, any
government is present in theshareholding structure.

179

Reason/Explanation
for Omission

IndexGRI 202：Market Presence 2016
Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

a. When a significant proportion of

Top Commitment

employees are compensated based on
wages subject to minimum wage rules,
report the relevant ratio of the entry
level wage by gender at significant
locations of operation to the minimum

Sustainable Value
Creation Process

wage.
b. When a significant proportion of otherworkers (excluding employees)

Our Stance on
CSR

202-1
Ratios ofstandard entry
level wage by
gendercompared to
local minimum
wage

performing the organization’s activities
are compensated based on wages
subject to minimum wage rules,
describe the actions taken to determineー

whether these workers are paid above
the minimum wage.
c. Whether a local minimum wage isabsent or variable at significant

Stakeholder
Engagement

locations of operation, by gender. In
circumstances in which different
minimums can be used as a reference,
report which minimum wage is beingused.
d. The definition used for ‘significant

Governancelocations of operation’.

a. Percentage of senior management at
significant locations of operation that

Social Initiatives

Environmental
Initiatives

202-2
Proportion ofseniormanagement
hired from the
localcommunity

are hired from the local community.
b. The definition used for ‘senior
management’.

ーc. The organization’s geographicaldefinition of ‘local’.
d. The definition used for ‘significant
locations of operation’.

Key CSR
Indicators andResults

About Our
Reporting180

Reason/Explanation
for Omission

IndexGRI 203：Indirect Economic Impacts 2016
Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

Reason/Explanation
for Omission

a. Extent of development of significant

Top Commitment

infrastructure investments andservices supported.

Sustainable Value
Creation Process

203-1
Infrastructure
investments
and services
supportedb. Current or expected impacts on

Socialcommunities and local economies,

Contribution

including positive and negative

Activities

impacts where relevant.
c. Whether these investments andservices are commercial, in-kind, or
pro bono engagements.

Our Stance on
CSR

a. Examples of significant identified
indirect economic impacts of theorganization, including positive andStakeholder
Engagement

203-2
Significant
indirect
economic
impacts

negative impacts.
b. Significance of the indirect economicー

impacts in the context of externalbenchmarks and stakeholder
priorities, such as national andinternational standards, protocols, andpolicy agendas.

Governance

GRI 204：Procurement Practices 2016
Social Initiatives

Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

a. Percentage of the procurement
budget used for significant locations ofEnvironmental
Initiatives

Key CSR
Indicators andResults

operation that is spent on suppliers
local to that operation (such as
204-1
Proportion of
spending on
local suppliers

Together with ourpercentage of products and services
purchased locally).

●b. The organization’s geographicaldefinition of ‘local’.
c. The definition used for ‘significant
locations of operation’.

About Our
Reporting

181

Business
Partners/Basic
StanceReason/Explanation
for Omission

IndexGRI 205：Anti-corruption 2016
Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

a. Total number and percentage

Top Commitment
205-1
Operations
assessed forrisks related tocorruptionof operations assessed for

Risk

risks related to corruption.

Management/b. Significant risks related toPromotion

corruption identified through

Systemthe risk assessment.

Sustainable Value
Creation Processa. Total number and percentage
of governance body membersthat the organization’s anticorruption policies and

Our Stance on
CSR

procedures have beencommunicated to, broken
down by region.
b. Total number and percentageof employees that the

Stakeholder
Engagement

organization’s anti-corruption
policies and procedures havebeen communicated to, broken
down by employee category
and region.

GovernanceSocial Initiatives

Environmental
Initiatives●
Compliance/c. Total number and percentage
205-2
Communicationand training
about anticorruption
policies andprocedures

Spreadingof business partners that theAwareness oforganization’s anti-corruption

Compliancepolicies and procedures havebeen communicated to, broken
down by type of business

Together withpartner and region. Describe if

our Businessthe organization’s anti-Partners/

corruption policies andPromotion ofprocedures have beenSociallycommunicated to any other

Responsible

persons or organizations.

Procurementd. Total number and percentage
of governance body membersthat have received training on
anti-corruption, broken down
by region.

Key CSR
Indicators andResultse. Total number and percentageof employees that havereceived training on anticorruption, broken down by
employee category and region.

About Our
Reporting

182

Reason/Explanation
for Omission

Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

Reason/Explanation
for Omission

Index
a. Total number and nature ofconfirmed incidents ofcorruption.
b. Total number of confirmed
incidents in which employees

Top Commitment

were dismissed or disciplined
for corruption.

Sustainable Value
Creation Process

205-3
Confirmed
incidents ofcorruption andactions taken

Corporate
Governance/c. Total number of confirmed●

incidents when contracts with

Changes tocorporatebusiness partners weregovernanceterminated or not renewed due

structure to speed

to violations related to

up decision-

corruption.

makingd. Public legal cases regarding
corruption brought against the

Our Stance on
CSR

organization or its employees
during the reporting period andthe outcomes of such cases.

Stakeholder
Engagement

GRI 206：Anti-competitive Behavior 2016
Disclosure
NumberCK
Materiarity

Disclosure Title

a. Number of legal actions pending

Governanceor completed during the reporting

Social Initiatives

Relevant Sections

206-1
Legal actions
for anticompetitive
behavior, antitrust, andmonopolypractices

Corporate

period regarding anti-competitive

Governance/

behavior and violations of antitrust and monopoly legislation inwhich the organization has been
identified as a participant.

Changes to●corporate
governancestructure tob. Main outcomes of completed legal
actions, including any decisions or
judgments.

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting183

speed updecision-making

Reason/Explanation
for Omission

IndexGRI 301：Materials 2016
Disclosure
Numberthat are used to produce and package
301-1
Materials
used byweight orvolumeSustainable Value
Creation Process

Stakeholder
Engagement

Relevant Sections

a. Total weight or volume of materials

Top Commitment

Our Stance on
CSR

CK
Materiarity

Disclosure Title

the organization’s primary products

Environmental

and services during the reporting

Burden Data

period, by:(Material Flow)

non-renewable materials used;renewable materials used.

301-2
Recycled
input
materials
used

301-3
Reclaimed
products andtheirpackagingmaterials

a. Percentage of recycled input materials
used to manufacture theorganization’s primary products andー

services.

a. Percentage of reclaimed products andtheir packaging materials for eachproduct category.

ーb. How the data for this disclosure havebeen collected.

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting184

Reason/Explanation
for Omission

IndexGRI 302：Energy 2016
Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

Reason/Explanation
for Omission

a. Total fuel consumption within the

Top Commitment

organization from non-renewablesources, in joules or multiples, andincluding fuel types used.
b. Total fuel consumption within theorganization from renewable sources,

Sustainable Value
Creation Process

in joules or multiples, and including
fuel types used.
c. In joules, watt-hours or multiples, thetotal:
electricity consumption

Our Stance on
CSR

Stakeholder
Engagement

heating consumption
302-1
Energyconsumption
within theorganization

cooling consumption
Environmental

steam consumption

Burden Datad. In joules, watt-hours or multiples, the(Material Flow)

total:
electricity soldheating soldcooling sold

Governancesteam solde. Total energy consumption within theorganization, in joules or multiples.
●f. Standards, methodologies,
assumptions, and/or calculation tools

Social Initiatives

used.
g. Source of the conversion factors
used.

Environmental
Initiatives

a. Energy consumption outside of theorganization, in joules or multiples.

Key CSR
Indicators andResults

302-2
Energyconsumption
outside of theorganizationb. Standards, methodologies,
assumptions, and/or calculation tools

ー

used.
c. Source of the conversion factors
used.

a. Energy intensity ratio for the

About Our
Reportingorganization.
b. Organization-specific metric (thedenominator) chosen to calculate the302-3
Energyintensity

ratio.
c. Types of energy included in theintensity ratio; whether fuel, electricity,
heating, cooling, steam, or all.
d. Whether the ratio uses energy
consumption within the organization,
outside of it, or both.

185

ーTotal consumption offuel derived fromrenewable energy
sources has not been
disclosed due todifficulties in
obtaining information.

Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

Reason/Explanation
for OmissionーReduction in energy
consumption due toenergy-saving
activities will be
disclosed from Fiscal
2019.

Index
a. Amount of reductions in energy
consumption achieved as a direct
result of conservation and efficiency
initiatives, in joules or multiples.
b. Types of energy included in the

Top Commitment
302-4
Reduction ofenergyconsumption

reductions; whether fuel, electricity,
heating, cooling, steam, or all.
c. Basis for calculating reductions inenergy consumption, such as baseyear or baseline, including the

Sustainable Value
Creation Process

rationale for choosing it.
d. Standards, methodologies,
assumptions, and/or calculation tools

●

used.

Our Stance on
CSR

a. Reductions in energy requirements ofsold products and services achieved
during the reporting period, in joules

Stakeholder
Engagement

302-5
Reductions inenergyrequirements
of products
and services

or multiples.
b. Basis for calculating reductions inenergy consumption, such as baseyear or baseline, including therationale for choosing it.
c. Standards, methodologies,
assumptions, and/or calculation tools

Governanceused.

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting186ーIndexGRI 303：Water 2016
Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

Reason/Explanation
for Omission

a. Total volume of water withdrawn,

Top Commitment

with a breakdown by the following
sources:

Surface water, including waterfrom wetlands, rivers, lakes,
and oceans;

Sustainable Value
Creation Process

Ground water;
303-1
Water
withdrawal bysourceApproaches to

Rainwater collected directly andstored by the organization;

Conservation andRecycling/Protectionof water resources

Waste water from another

Our Stance on
CSR

Resources

organization;
Municipal water supplies orother public or private water
utilities.
b. Standards, methodologies, andStakeholder
Engagement

assumptions used.

a. Total number of water sources
significantly affected by withdrawal
by type:GovernanceSize of the water source;
Whether the source isdesignated as a nationally or

Social Initiatives

303-2
Water
sourcessignificantly
affected bywithdrawal ofwaterinternationally protected area;
Biodiversity value (such asーspecies diversity andendemism, and total number ofprotected species);
Value or importance of thewater source to local

Environmental
Initiatives

communities and indigenous
peoples.
b. Standards, methodologies, andassumptions used.

Key CSR
Indicators andResultsa. Total volume of water recycled andreused by the organization.

About Our
Reporting

303-3
Water
recycled andreusedb. Total volume of water recycled andreused as a percentage of the total
water withdrawal as specified inDisclosure 303-1.
c. Standards, methodologies, andassumptions used.

187

ーThere are plans to
conduct a water risk
assessment in Fiscal
2018, which will be
disclosed from Fiscal
2019.

IndexGRI 304：Biodiversity 2016
Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

a. For each operational site owned,

Top Commitment

leased, managed in, or adjacent to,protected areas and areas of highbiodiversity value outside protectedareas, the following information:
Geographic location;

Sustainable Value
Creation Process

Subsurface and underground landthat may be owned, leased, ormanaged by the organization;
Position in relation to the protected

Our Stance on
CSR

Stakeholder
Engagement

304-1
Operationalsites owned,
leased,managed in,or adjacent to,protected
areas andareas of highbiodiversity
value outside
protected
areas

area (in the area, adjacent to, or
containing portions of the protectedarea) or the high biodiversity value
area outside protected areas;
Type of operation (office,manufacturing or production, or
extractive);
Size of operational site in km2 (oranother unit, if appropriate);
Biodiversity value characterized by
the attribute of the protected area or

Governancearea of high biodiversity value
outside the protected area
(terrestrial, freshwater, or maritime
ecosystem);
Biodiversity value characterized bySocial Initiatives

listing of protected status (such as
IUCN Protected Area Management
Categories, Ramsar Convention,national legislation).

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting188

ーReason/Explanation
for Omission

Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

Index
a. Nature of significant direct and indirect
impacts on biodiversity with reference
to one or more of the following:
Construction or use of
manufacturing plants, mines, andTop Commitment

transport infrastructure;
Pollution (introduction ofsubstances that do not naturally
occur in the habitat from point andnon-point sources);

Sustainable Value
Creation Process

Our Stance on
CSR

Introduction of invasive species,
304-2
Significant
impacts ofactivities,
products, andservices on
biodiversity

pests, and pathogens;
Reduction of species;ー

Habitat conversion;
Changes in ecological processes
outside the natural range ofvariation (such as salinity orchanges in groundwater level).
b. Significant direct and indirect positive

Stakeholder
Engagement

and negative impacts with reference tothe following:Species affected;
Extent of areas impacted;
Duration of impacts;

Governance

Reversibility or irreversibility of the
impacts.

a. Size and location of all habitat areas
protected or restored, and whether theSocial Initiatives

success of the restoration measure wasor is approved by independent external
professionals.
b. Whether partnerships exist with third

Environmental
Initiatives

304-3
Habitats
protected or
restoredparties to protect or restore habitat
areas distinct from where theーorganization has overseen andimplemented restoration or protection
measures.

Key CSR
Indicators andResultsc. Status of each area based on its
condition at the close of the reporting
period.
d. Standards, methodologies, andassumptions used.

About Our
Reportinga. Total number of IUCN Red List species
and national conservation list species
with habitats in areas affected by the
304-4
IUCN Red List
species andnational
conservation
list species
with habitats inareas affectedby operations

operations of the organization, by levelof extinction risk:
Critically endangeredーEndangered
Vulnerable
Near threatened
Least concern

189

Reason/Explanation
for Omission

IndexGRI 305：Emissions 2016
Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

Reason/Explanation
for Omission

a. Gross direct (Scope 1) GHG

Top Commitment

emissions in metric tons of CO2
equivalent.
b. Gases included in the calculation;
whether CO2, CH4, N2O, HFCs, PFCs,
SF6, NF3, or all.

Sustainable Value
Creation Processc. Biogenic CO2 emissions in metric tonsof CO2 equivalent.
d. Base year for the calculation, if
applicable, including:

Our Stance on
CSR
305-1
Direct (Scope
1) GHGemissions

Stakeholder
Engagement

Approaches tothe rationale for choosing it;

Climateemissions in the base year;●

the context for any significant
changes in emissions thattriggered recalculations of baseyear emissions.
e. Source of the emission factors and theglobal warming potential (GWP) rates
used, or a reference to the GWP
source.

Governancef. Consolidation approach for emissions;
whether equity share, financial control,or operational control.
g. Standards, methodologies,
assumptions, and/or calculation tools

Social Initiatives

used.

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

190

Change/Climate
Change Action
Environmental
Burden Data
(Material Flow)

Difficulty obtaining
information: Unable
to obtain information
for all businesslocationsDisclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

Reason/Explanation
for OmissionーDifficulty obtaining
information: Unable
to obtain information
for all businesslocationsIndex
a. Gross location-based energy indirect(Scope 2) GHG emissions in metrictons of CO2 equivalent.
b. If applicable, gross market-basedenergy indirect (Scope 2) GHG

Top Commitment

emissions in metric tons of CO2
equivalent.
c. If available, the gases included in thecalculation; whether CO2, CH4, N2O,
HFCs, PFCs, SF6, NF3, or all.

Sustainable Value
Creation Processd. Base year for the calculation, if
applicable, including:

Our Stance on
CSR

305-2
Energyindirect(Scope 2)
GHG
emissionsthe rationale for choosing it;
emissions in the base year;
the context for any significant
changes in emissions thattriggered recalculations of baseyear emissions.
e. Source of the emission factors and the

Stakeholder
Engagement

global warming potential (GWP) rates
used, or a reference to the GWP
source.
f. Consolidation approach for emissions;
whether equity share, financial control,or operational control.

Governanceg. Standards, methodologies,
assumptions, and/or calculation tools
used.
●Social Initiatives

a. Gross other indirect (Scope 3) GHG
emissions in metric tons of CO2
equivalent.
b. If available, the gases included in thecalculation; whether CO2, CH4, N2O,

Environmental
Initiatives

HFCs, PFCs, SF6, NF3, or all.
c. Biogenic CO2 emissions in metric tonsof CO2 equivalent.
d. Other indirect (Scope 3) GHG

Key CSR
Indicators andResults

About Our
Reportingemissions categories and activities
included in the calculation.
305-3
Other indirect(Scope 3)
GHG
emissionse. Base year for the calculation, if
applicable, including:ー

the rationale for choosing it;
emissions in the base year;
the context for any significant
changes in emissions thattriggered recalculations of baseyear emissions.
f. Source of the emission factors and theglobal warming potential (GWP) rates
used, or a reference to the GWP
source.
g. Standards, methodologies,
assumptions, and/or calculation tools
used.

191

Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

Index
a. GHG emissions intensity ratio for theorganization.
b. Organization-specific metric (thedenominator) chosen to calculate the

Top Commitment

305-4
GHG
emissions
intensity

ratio.

Approaches to
Climatec. Types of GHG emissions included in

Change/Climate

the intensity ratio; whether direct

Change Action(Scope 1), energy indirect (Scope 2),
and/or other indirect (Scope 3).

Sustainable Value
Creation Process

d. Gases included in the calculation;
whether CO2, CH4, N2O, HFCs,
PFCs, SF6, NF3, or all.

a. GHG emissions reduced as a direct

Our Stance on
CSR

result of reduction initiatives, in metrictons of CO2 equivalent.
Approaches tob. Gases included in the calculation;

Climatewhether CO2, CH4, N2O, HFCs,

Change/Climate

PFCs, SF6, NF3, or all.

Stakeholder
Engagement

305-5
Reduction ofGHG
emissions

Change Action

c. Base year or baseline, including theEnvironmental

rationale for choosing it.

Action Plan and
Results

d. Scopes in which reductions took place;whether direct (Scope 1), energy

Environmental

indirect (Scope 2), and/or other

Burden Data

indirect (Scope 3).

Governance(Material Flow)e. Standards, methodologies,
assumptions, and/or calculation tools
used.
●Social Initiatives

a. Production, imports, and exports of
ODS in metric tons of CFC-11

Environmental
Initiatives

305-6
Emissions ofozonedepleting
substances(ODS)(trichlorofluoromethane) equivalent.
b. Substances included in the calculation.
c. Source of the emission factors used.

ーd. Standards, methodologies,
assumptions, and/or calculation tools
used.

Key CSR
Indicators andResultsa. Significant air emissions, in kilograms
or multiples, for each of the following:
NOx

Environmental

SOx

About Our
Reporting

Burden Data

Persistent organic pollutants
305-7
Nitrogenoxides (NOX),
sulfur oxides(SOX), andothersignificant air
emissions(POP)(Material Flow)
Sustainability

Volatile organic compounds (VOC)
Hazardous air pollutants (HAP)

Data
Environmental
Data of
Manufacturing

Particulate matter (PM)Other standard categories of air

Plants in Japanemissions identified in relevant

Appropriate

regulations

Management of

b. Source of the emission factors used.
c. Standards, methodologies,
assumptions, and/or calculation tools
used.

192

ChemicalSubstances

Reason/Explanation
for Omission

IndexGRI 306：Effluents and Waste 2016
Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

Reason/Explanation
for Omission

a. Total volume of planned and

Top Commitment

unplanned water discharges by:destination;

Sustainable Value
Creation Process

306-1
Water
discharge by
quality anddestination

quality of the water, including
treatment method;●whether the water was

Burden Data
(Material Flow)

reused by anotherorganization.
b. Standards, methodologies, and

Our Stance on
CSR

Environmental

assumptions used.

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting193

Difficulty obtaining
information: Unable
to obtain informationfrom overseas

Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

Index
a. Total weight of hazardous waste,with a breakdown by the following
disposal methods whereapplicable:

Reuse

Top Commitment

Recycling
Composting
Recovery, including energy
recoverySustainable Value
Creation Process

Incineration (mass burn)
Deep well injection
Landfill
On-site storage

Our Stance on
CSR

Other (to be specified by theorganization)b. Total weight of non-hazardous

Environmental

waste, with a breakdown by the

Stakeholder
Engagement

306-2
Waste bytype anddisposal
methodapplicable:

●

Reuse

Recycling/
Effective use of

Recovery, including energy

resources

recovery(Efficiency in theuse of materials)

Deep well injection
Landfill
On-site storage
Other (to be specified by theorganization)

Environmental
Initiativesc. How the waste disposal method
has been determined:
Disposed of directly by theorganization, or otherwise

Key CSR
Indicators andResults

Approaches toConservation andIncineration (mass burn)

Social Initiatives(Material Flow)

Resources

Recycling
Composting

Governance

Burden Data

following disposal methods where

directly confirmed
Information provided by thewaste disposal contractor
Organizational defaults of thewaste disposal contractor

About Our
Reporting194

Reason/Explanation
for Omission

Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

Reason/Explanation
for Omission

Index
a. Total number and total volume ofrecorded significant spills.
b. The following additional
information for each spill that wasreported in the organization’s

Top Commitment

financial statements:

Location of spill;

Sustainable Value
Creation Process

306-3
Significant
spillsAppropriate
Management ofVolume of spill;

ChemicalMaterial of spill, categorized

Substances/by: oil spills (soil or water

Prevention of

surfaces), fuel spills (soil orEnvironmental

water surfaces), spills of

Pollution by Plant

wastes (soil or water
surfaces), spills of chemicals(mostly soil or water

Our Stance on
CSR

surfaces), and other (to be
specified by the organization).
c. Impacts of significant spills.

Stakeholder
Engagementa. Total weight for each of thefollowing:
Hazardous waste transported●

Hazardous waste imported

Governance306-4
Transport ofhazardous
waste

Hazardous waste exported

Not applicable

Hazardous waste treatedb. Percentage of hazardous waste
shipped internationally.
c. Standards, methodologies, andassumptions used.

Social Initiatives

a. Water bodies and related habitatsthat are significantly affected bywater discharges and/or runoff,

Environmental
Initiatives

Key CSR
Indicators andResults

including information on:
306-5
Water bodies
affected bywaterdischarges
and/or runoff

the size of the water bodyand related habitat;ー

whether the water body andrelated habitat is designatedas a nationally orinternationally protected area;
the biodiversity value, suchas total number of protected

About Our
Reportingspecies.

195

There are plans to
conduct a water risk
assessment in Fiscal
2018, which will be
disclosed from Fiscal
2019.

IndexGRI 307：Environmental Compliance 2016
Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

Reason/Explanation
for Omission

a. Significant fines and non-

Top Commitment

monetary sanctions for noncompliance with environmental
laws and/or regulations in termsof:Sustainable Value
Creation Process

Our Stance on
CSR

total monetary value of
307-1
Noncompliancewithenvironmental
laws andregulations

Corporate

significant fines;

Governance/

total number of non-monetary●

sanctions;

Changes tocorporatecases brought throughgovernancedispute resolution

structure to speed

mechanisms.

up decisionmaking

b. If the organization has not
identified any non-compliancewith environmental laws and/or
regulations, a brief statement of

Stakeholder
Engagement

this fact is sufficient.

GRI 308：Supplier Environmental Assessment 2016
Governance
Disclosure
NumberSocial Initiatives

308-1
New suppliers
that werescreenedusing
environmental
criteria

CK
Materiarity

Disclosure Title

a. Percentage of new suppliers that werescreened using environmental criteria.

Relevant Sections

Reason/Explanation
for OmissionーThe percentage of
new suppliers
selected according toenvironmental criteria
has not been
disclosed due todifficulties in
obtaining information,
but this will be
disclosed from
FY2019.

Environmental
Initiatives
a. Number of suppliers assessed forenvironmental impacts.
b. Number of suppliers identified as

Key CSR
Indicators andResults

About Our
Reportinghaving significant actual and potential
negative environmental impacts.

●c. Significant actual and potential
308-2
Negativeenvironmental
impacts in the
supply chain
and actions
taken

negative environmental impacts
identified in the supply chain.
d. Percentage of suppliers identified ashaving significant actual and potential
negative environmental impacts withwhich improvements were agreed upon
as a result of assessment.
e. Percentage of suppliers identified ashaving significant actual and potential
negative environmental impacts withwhich relationships were terminated asa result of assessment, and why.

196ー

IndexGRI 401：Employment 2016
Disclosure
NumberRelevant Sections

a. Total number and rate of new

Top Commitment

Sustainable Value
Creation Process

CK
Materiarity

Disclosure Title

401-1
New
employeehires and
employeeturnoveremployee hires during the reporting
period, by age group, gender andregion.

Employee Datab. Total number and rate of employee
turnover during the reporting period,by age group, gender and region.

a. Benefits which are standard for fulltime employees of the organization but
are not provided to temporary or part-Our Stance on
CSRtime employees, by significant
locations of operation. These include,

Stakeholder
Engagement

401-2
Benefits
provided tofull-time
employeesthat are notprovided totemporary or
part-time
employees

as a minimum:
life insurance;
health care;parental leave;
retirement provision;●stock ownership;

Governanceーdisability and invalidity coverage;

others.
b. The definition used for ‘significant
locations of operation’.

Social Initiatives

a. Total number of employees that wereentitled to parental leave, by gender.
b. Total number of employees that tookparental leave, by gender.

Environmental
Initiativesc. Total number of employees that
returned to work in the reporting period
401-3
Parental leave

Key CSR
Indicators andResults

after parental leave ended, by gender.
d. Total number of employees that
returned to work after parental leave
ended that were still employed 12months after their return to work, bygender.
e. Return to work and retention rates of
employees that took parental leave, by

About Our
Reportinggender.

197

Sustainability
Data
Employee Data
Promotion ofWork-Life
Balance

Reason/Explanation
for Omission

IndexGRI 402：Labor/Management Relations 2016
Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

a. Minimum number of

Top Commitment

weeks’ notice typicallyprovided to employees
and their representativesprior to theimplementation of

Sustainable Value
Creation Process

Our Stance on
CSR

402-1
Minimum
noticeperiods
regardingoperationalchangessignificant operationalchanges that could

Stakeholder

substantially affect them.

Engagement/
Labor/

b. For organizations withManagement

collective bargaining

Relationsagreements, report
whether the notice
period and provisions for
consultation andnegotiation are specified
in collective agreements.

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting198

Reason/Explanation
for Omission

IndexGRI 403：Occupational Health and Safety 2016
Disclosure
NumberRelevant Sections

a. The level at which each formal joint

Top Commitment

Sustainable Value
Creation Process

CK
Materiarity

Disclosure Title

403-1
Workers
representation
in formal joint
management–
worker healthand safetycommittees

management-worker health and safetycommittee typically operates within theProtecting theorganization.

Health andb. Percentage of workers whose work, orSafety of ourworkplace, is controlled by the

Employeesorganization, that are represented byformal joint management-worker
health and safety committees.

a. Types of injury, injury rate (IR),Our Stance on
CSR

occupational disease rate (ODR), lost
day rate (LDR), absentee rate (AR),and work-related fatalities, for all
employees, with a breakdown by:

Stakeholder
Engagement

Governance

403-2
Types of injury
and rates of
injury,occupational
diseases, lostdays, andabsenteeism,and number ofwork-related
fatalities

region;gender.
Protecting theb. Types of injury, injury rate (IR), andHealth andwork-related fatalities, for all workers

Safety of our(excluding employees) whose work, or
workplace, is controlled by theorganization, with a breakdown by:

Employees●

region;gender.
c. The system of rules applied inrecording and reporting accident

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reportingstatistics.

403-3
Workers withhigh incidenceor high risk of
diseasesrelated to theiroccupationa. Whether there are workers whose

403-4
Health andsafety topics
covered informalagreementswith tradeunionsa. Whether formal agreements (either

work, or workplace, is controlled by
the organization, involved in
occupational activities who have aーhigh incidence or high risk of specificdiseases.

local or global) with trade unions coverhealth and safety.
b. If so, the extent, as a percentage, towhich various health and safety topics
are covered by these agreements.

199

ー

Reason/Explanation
for Omission

IndexGRI 404：Training and Education 2016
Disclosure
NumberTop Commitment

Sustainable Value
Creation Process

Our Stance on
CSR

Stakeholder
Engagement

CK
Materiarity

Disclosure Title

Resources

organization’s employees have

Development toundertaken during the reporting

Expand Individual

period, by:Capabilities/Basic

gender;Stanceemployee category.

Sustainability
Data

Human

a. Type and scope of programs
404-2
Programs for
upgradingemployeeskills andtransition
assistanceprograms

Resources

implemented and assistance

404-3
Percentage of
employees
receiving
regularperformanceand careerdevelopment
reviews

Development toprovided to upgrade employee skills.
●

b. Transition assistance programs

Expand Individual
Capabilities/Basic
Stanceprovided to facilitate continued
employability and the management ofcareer endings resulting from

Promotion ofDiversity/Re-hiring

retirement or termination ofof Retired

employment.

GovernanceHuman

a. Average hours of training that the
404-1
Average hoursof training peryear peremployee

Relevant Sections

Employeesa. Percentage of total employees bygender and by employee category
who received a regular performanceand career development review
during the reporting period.

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting200

Fair Treatment
and Evaluation

Reason/Explanation
for Omission

IndexGRI 405：Diversity and Equal Opportunity 2016
Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

Reason/Explanation
for Omission

a. Percentage of individuals within the

Top Commitment

organization’s governance bodies ineach of the following diversity
categories:
Gender;Sustainable Value
Creation Process

Our Stance on
CSR

Age group: under 30 years old,
30-50 years old, over 50 years old;
405-1
Diversity of
governancebodies andemployees

Other indicators of diversity where

Promotion of

relevant (such as minority or

Diversityvulnerable groups).

Sustainability

b. Percentage of employees per

Data

employee category in each of thefollowing diversity categories:●

Gender;Age group: under 30 years old,

Stakeholder
Engagement

30-50 years old, over 50 years old;
Other indicators of diversity where
relevant (such as minority orvulnerable groups).

GovernanceSocial Initiatives

Environmental
Initiatives

a. Ratio of the basic salary and405-2
Ratio of basic
salary andremunerationof women tomen

remuneration of women to men foreach employee category, by

and Evaluationb. The definition used for ‘significant
locations of operation’.

GRI 406：Non-discrimination 2016
Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

a. Total number of incidents of

Key CSR
Indicators andResults

discrimination during the reporting
period.
b. Status of the incidents and actions
taken with reference to the following:

About Our
ReportingFair Treatment

significant locations of operation.

406-1
Incidents of
discriminationand corrective
actions taken

Incident reviewed by the

Respecting
Human
Rights/Humanorganization;

Rights Due
Diligence in the

Remediation plans being
implemented;

SupplyRemediation plans that have been

Rights Education

implemented, with results
reviewed through routine internalmanagement review processes;
Incident no longer subject toaction.

201

Chain/Humanand Training

Reason/Explanation
for Omission

IndexGRI 407：Freedom of Association and Collective Bargaining 2016
Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

Reason/Explanation
for Omission

a. Operations and suppliers in which

Top Commitment

workers’ rights to exercise freedom of
association or collective bargaining
may be violated or at significant risk

Sustainable Value
Creation Process

407-1
Operations
and suppliers
in which theright tofreedom of
associationand collective
bargaining
may be at risk

either in terms of:type of operation (such as
manufacturing plant) and supplier;ーcountries or geographic areas with
operations and suppliersconsidered at risk.
b. Measures taken by the organization in

Our Stance on
CSR

the reporting period intended to supportrights to exercise freedom of
association and collective bargaining.

Stakeholder
Engagement

GRI 408：Child Labor 2016
Disclosure
NumberGovernance

CK
Materiarity

Disclosure Title

Relevant Sections

Reason/Explanation
for Omission

a. Operations and suppliers considered
to have significant risk for incidents of:child labor;
young workers exposed tohazardous work.

Social Initiatives

Environmental
Initiatives

408-1
Operations
and suppliers
at significant
risk forincidents ofchild labor

Respecting

to have significant risk for incidents ofRights/Humanchild labor either in terms of:Rights Due●type of operation (such as
manufacturing plant) and supplier;

Diligence in the
SupplyChain/Humancountries or geographic areas with

Rights Education

operations and suppliers

and Training

considered at risk.

Key CSR
Indicators andResults

Human

b. Operations and suppliers consideredc. Measures taken by the organization in
the reporting period intended tocontribute to the effective abolition ofchild labor.

About Our
Reporting

202

Business locations
and suppliers
believed to havesignificant risks havenot been disclosed
due to confidentiality
restrictions.

IndexGRI 409：Forced or Compulsory Labor 2016
Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

a. Operations and suppliers considered

Top Commitment

to have significant risk for incidents offorced or compulsory labor either in

Respecting

terms of:

Sustainable Value
Creation Process

409-1
Operations
and suppliers
at significant
risk forincidents offorced orcompulsory
labor

Human

type of operation (such as

Rights/Human

manufacturing plant) and supplier;countries or geographic areas with

Rights Due●

Diligence in the
Supplyoperations and suppliers

Chain/Humanconsidered at risk.

Rights Education

b. Measures taken by the organization incontribute to the elimination of all
forms of forced or compulsory labor.

GRI 410：Security Practices 2016
Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

Reason/Explanation
for Omission

a. Percentage of security personnel who

GovernanceSocial Initiatives

Business locations
and suppliers
believed to havesignificant risks havenot been disclosed
due to confidentiality
restrictions.

and Training

the reporting period intended to

Our Stance on
CSR

Stakeholder
Engagement

Reason/Explanation
for Omission

410-1
Security
personnel
trained inhuman rights
policies orprocedures

have received formal training in theorganization’s human rights policies or
specific procedures and theirーapplication to security.
b. Whether training requirements also
apply to third-party organizations
providing security personnel.

Environmental
Initiatives

GRI 411：Rights of Indigenous Peoples 2016
Disclosure
Number

Key CSR
Indicators andResults

CK
Materiarity

Disclosure Title

Relevant Sections

a. Total number of identified incidents ofviolations involving the rights ofindigenous peoples during the reporting
period.
b. Status of the incidents and actions

About Our
Reporting

411-1
Incidents ofviolations
involvingrights ofindigenous
peoplestaken with reference to the following:
Incident reviewed by theorganization;ーRemediation plans being
implemented;
Remediation plans that have been
implemented, with results reviewed
through routine internalmanagement review processes;
Incident no longer subject to action.

203

Reason/Explanation
for Omission

IndexGRI 412：Human Rights Assessment 2016
Disclosure
NumberTop Commitment

Sustainable Value
Creation Process

412-1
Operations
that have been
subject tohuman rights
reviews or
impactassessments

CK
Materiarity

Disclosure Title

Relevant Sections

Respecting
Humana. Total number and percentage of
operations that have been subject toRights/Human

human rights reviews or human rights

Rights Due

impact assessments, by country.

Diligence in the
Supply Chaina. Total number of hours in the reporting
period devoted to training on humanrights policies or procedures

Our Stance on
CSR

412-2
Employeetraining on
human rights
policies orprocedures

Respecting

concerning aspects of human rights

Humanthat are relevant to operations.
b. Percentage of employees trained

Rights/Human●

Rights Education

during the reporting period in humanand Training

rights policies or procedures
concerning aspects of human rightsthat are relevant to operations.

Stakeholder
Engagement

Governance412-3
Significant
investment
agreements
and contracts
that include
human rights
clauses or that
underwent
human rights
screeninga. Total number and percentage ofsignificant investment agreements
and contracts that include humanrights clauses or that underwent
human rights screening.
b. The definition used for ‘significant
investment agreements’.

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting204

ーReason/Explanation
for Omission

IndexGRI 413：Local Communities 2016
Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

a. Percentage of operations withTop Commitment

implemented local community
engagement, impact
assessments, and/or
development programs,
including the use of:

Sustainable Value
Creation Processsocial impact
assessments, including
gender impact
assessments, based onparticipatory processes;

Our Stance on
CSR

environmental impact
assessments and ongoing
monitoring;
public disclosure of results

Stakeholder
Engagement

Governance

413-1
Operations
with local
community
engagement,
impactassessments,
anddevelopment
programsof environmental andsocial impact

Social Contribution

assessments;

Activities

local community

Stakeholder

development programs

Engagement/

based on local

Stakeholder

communities’ needs;

Initiatives

stakeholder engagement
plans based on
stakeholder mapping;broad based local
community consultationcommittees and processes

Social Initiatives

that include vulnerable
groups;works councils,
occupational health andsafety committees andEnvironmental
Initiatives

other worker
representation bodies todeal with impacts;
formal local community

Key CSR
Indicators andResults

grievance processes.

a. Operations with significant

About Our
Reporting

413-2
Operations
withsignificant
actual andpotential
negative
impacts on
local
communities

actual and potential negative
impacts on local communities,
including:ー

the location of theoperations;the significant actual andpotential negative impacts
of operations.

205

Reason/Explanation
for Omission

IndexGRI 414：Supplier Social Assessment 2016
Disclosure
NumberTop Commitment414-1
New suppliers
that werescreenedusing social
criteria

CK
Materiarity

Disclosure Title

a. Percentage of new suppliers that werescreened using social criteria.

Relevant Sections

Reason/Explanation
for OmissionーThe percentage of
new suppliers
selected according tosocial criteria has notbeen disclosed due
to difficulties in
obtaining information,
but this will be
disclosed from
FY2019.

Sustainable Value
Creation Process
a. Number of suppliers assessed forsocial impacts.
b. Number of suppliers identified as

Our Stance on
CSR

having significant actual and potential
negative social impacts.

●c. Significant actual and potential

Stakeholder
Engagement

414-2
Negativesocial impacts
in the supply
chain andactions taken

negative social impacts identified in

Respecting

the supply chain.

Human
Rights/Humand. Percentage of suppliers identified as

Rights Due

having significant actual and potential

Diligence in thenegative social impacts with which

Supply Chain

improvements were agreed upon as a

The number ofsuppliers identified
as having significant
negative social
impact has not been
disclosed due toconfidentiality
restrictions.

result of assessment.
e. Percentage of suppliers identified asGovernancehaving significant actual and potential
negative social impacts with which
relationships were terminated as aresult of assessment, and why.

Social Initiatives

GRI 415：Public Policy 2016
Environmental
Initiatives

Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

a. Total monetary value of financial andin-kind political contributions madeKey CSR
Indicators andResults

415-1
Political
contributions

directly and indirectly by theorganization by country and recipient/beneficiary.
b. If applicable, how the monetary valueof in-kind contributions was estimated.

About Our
Reporting206

ーReason/Explanation
for Omission

IndexGRI 416：Customer Health and Safety 2016
Disclosure
NumberTop Commitment

416-1
Assessmentof the healthand safety
impacts ofproduct andservice
categories

Sustainable Value
Creation Process

CK
Materiarity

Disclosure Title

Relevant Sections

Qualitya. Percentage of significant productand service categories for which

Management/

health and safety impacts are

Initiatives toassessed for improvement.

Improve R&D
Qualitya. Total number of incidents of noncompliance with regulations
and/or voluntary codes
concerning the health and safety
impacts of products and services

Our Stance on
CSR

Stakeholder
Engagement

within the reporting period, by:
416-2
Incidents ofnoncomplianceconcerning
the healthand safety
impacts ofproducts andservices

incidents of non-compliance●with regulations resulting in a
Qualityfine or penalty;

Management/

incidents of non-compliancewith regulations resulting in awarning;

Improve R&D
Qualityincidents of non-compliancewith voluntary codes.
b. If the organization has not

GovernanceInitiatives to

identified any non-compliancewith regulations and/or voluntary
codes, a brief statement of thisfact is sufficient.

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

207

Reason/Explanation
for Omission

IndexGRI 417：Marketing and Labeling 2016
Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

a. Whether each of the following types of

Top Commitment

information is required by theorganization’s procedures for productand service information and labeling:
The sourcing of components of the
product or service;

Sustainable Value
Creation Process

Our Stance on
CSR

Content, particularly with regard to417-1
Requirementsfor product andservice
information andlabeling

substances that might produce anenvironmental or social impact;ー

Safe use of the product or service;
Disposal of the product andenvironmental or social impacts;
Other (explain).
b. Percentage of significant product orservice categories covered by andStakeholder
Engagement

assessed for compliance with suchprocedures.

a. Total number of incidents of noncompliance with regulations and/or
voluntary codes concerning productGovernanceand service information and labeling,by:Social Initiatives

417-2
Incidents of
non-complianceconcerning
product andservice
information andlabeling

incidents of non-compliance withregulations resulting in a fine or
penalty;incidents of non-compliance withー

regulations resulting in a warning;
incidents of non-compliance withvoluntary codes.

Environmental
Initiatives

b. If the organization has not identified
any non-compliance with regulations
and/or voluntary codes, a brief
statement of this fact is sufficient.

Key CSR
Indicators andResultsa. Total number of incidents of noncompliance with regulations and/or
voluntary codes concerning marketing
communications, including advertising,promotion, and sponsorship, by:

About Our
Reportingincidents of non-compliance with
417-3
Incidents of
non-complianceconcerningmarketingcommunications

regulations resulting in a fine or
penalty;incidents of non-compliance withregulations resulting in a warning;
incidents of non-compliance withvoluntary codes.
b. If the organization has not identified
any non-compliance with regulations
and/or voluntary codes, a brief
statement of this fact is sufficient.

208

ー

Reason/Explanation
for Omission

IndexGRI 418： Customer Privacy 2016
Disclosure
NumberCK
Materiarity

Disclosure Title

Relevant Sections

Reason/Explanation
for Omission

a. Total number of substantiated

Top Commitmentcomplaints received concerning
breaches of customer privacy,
categorized by:

Sustainable Value
Creation Process

418-1
Substantiatedcomplaints
concerning
breaches ofcustomer
privacy andlosses ofcustomer data

Our Stance on
CSR

complaints received from outside
parties and substantiated by theorganization;ーcomplaints from regulatory bodies.
b. Total number of identified leaks, thefts,
or losses of customer data.
c. If the organization has not identified
any substantiated complaints, a brief
statement of this fact is sufficient.

Stakeholder
Engagement

GRI 419：Socioeconomic Compliance 2016
Disclosure
NumberGovernance

CK
Materiarity

Disclosure Title

Relevant Sections

a. Significant fines and non-monetary
sanctions for non-compliance withlaws and/or regulations in thesocial and economic area in termsof:total monetary value ofSocial Initiatives

Environmental
Initiatives

419-1
Noncompliancewith laws andregulations inthe social andeconomic
area

significant fines;

sanctions;cases brought through dispute
resolution mechanisms.

Governance/●

Changes tocorporate
governancestructure to speed

b. If the organization has not

up decision-

identified any non-compliance withlaws and/or regulations, a brief

Key CSR
Indicators andResults

Corporate

total number of non-monetarystatement of this fact is sufficient.
c. The context against whichsignificant fines and non-monetary
sanctions were incurred.

About Our
Reporting209

makingReason/Explanation
for Omission

IndexTop Priority CSR Issues and Material Issues in regard to GRI Standards
Top Priority CSR Issues

Areas

Material Issues in regard to GRI Standards

Climate change action

Environment

GRI 302： Energy 2016

Top Commitment

GRI 305： Emissions 2016
Prevention of pollution

Environment

GRI 306： Effluents and Waste 2016

Effective use of resources

Environment

GRI 306： Effluents and Waste 2016

Sustainable Value
Creation Process

GRI 204： Procurement Practices 2016
Improve ESG in supply chain

SocialGRI 308： Supplier Environmental Assessment 2016
GRI 414： Supplier Social Assessment 2016

Our Stance on
CSR

Create social values through innovations

GovernanceSocial Initiatives

GRI 203： Indirect Economic Impacts 2016
GRI 408： Child Labor 2016

Respecting human rights

Stakeholder
Engagement

SocialSocialGRI 409： Forced or Compulsory Labor 2016
GRI 412： Human Rights Assessment 2016

Occupational health and safety

SocialGRI 403： Occupational Health and Safety 2016

Promoting work-life balanceSocialGRI 401： Employment 2016

Promoting diversity

SocialGRI 405： Diversity and Equal Opportunity 2016

Human resource development

SocialGRI 404： Training and Education 2016

Improve customer satisfaction

SocialGRI 416： Customer Health and Safety 2016

Quality improvement

SocialGRI 416： Customer Health and Safety 2016

ESG Risk management

Governance

GRI 201： Economic Performance 2016
GRI 205： Anti-corruption 2016
GRI 206： Anti-competitive Behavior 2016

Strengthening compliance

Governance
GRI 307： Environmental Compliance 2016

Environmental
Initiatives

GRI 419： Socioeconomic Compliance 2016
Strengthening information security

Governance

Key CSR
Indicators andResults

About Our
Reporting210

GRI 416： Customer Health and Safety 2016

IndexTop Commitment

ISO Comparison Table

ISO 26000 Coresubjects

IssuesRelevant sections

Top Commitment

Sustainable Value
Creation Process

Organizational
governance

Organizational governance

CSR Policy
Corporate GovernanceComplianceDue diligence

Our Stance on
CSR

Human rights risk situations
Avoidance of complicity
Human rights

Stakeholder
Engagement

Resolving grievances

Respecting Human Rights

Discrimination and vulnerable groups

Together with our Business Partners

Civil and political rights
Economic, social and cultural rights
Fundamental principles and rights at work

Governance
Creating an Organization that Values

Social Initiatives

Labour Practices

Employment and employment relationships

the Individual and Diversity

Conditions of work and social protection

Promotion of Diversity

Social dialogue

Promotion of Work-Life Balance

Health and safety at work

Protecting the Health and Safety of our

Human development and training in theworkplace

Employees
Human Resources Development to
Expand Individual Capabilities

Environmental
Initiatives
Environmental Management
Prevention of pollution

Key CSR
Indicators andResults

Sustainable resource use
The environment

Climate change mitigation and adaptation
Protection of environment, biodiversity andrestoration of natural habits

Environmentally-Conscious
Monozukuri
Approaches to Climate Change
Approaches to Resources
Conservation and Recycling
Appropriate Management of Chemical
Substances

About Our
ReportingAnti–corruption
Responsible political involvement
Fair operating practices

Fair competition

Corporate GovernanceCompliance

Promoting social responsibility in the value
chain
Respect for property rights

211

Together with our Business Partners

ISO 26000 Coresubjects

IssuesRelevant sections

Index
Fair marketing, factual and unbiased
information and fair contractual practices
Protecting consumers

Ehealth and safety

Sustainable consumption

Top Commitment

Consumer issues

Consumer service, support, and complaint anddispute resolution

Together with our Business Partners
Quality Management

Consumer data protection and privacy
Access to essential services

Sustainable Value
Creation Process

Education and awarenessCommunity involvement
Education and culture

Our Stance on
CSR

Employment creation and skills development
Community involvementand development

Technology development and access
Wealth and income creation

Stakeholder
Engagement

HealthSocial investment

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting212

Our Stance on CSR
CSR Medium-term Plan
Stakeholder Engagement
Social Contribution Activities

Glossary
Index

Modern slavery
Defined as a person who is working in conditions that he or she is unable to refuse or escape from,Top Commitment

such as human trafficking, forced labor, debt bondage, forced or servile marriage, forced sexual
exploitation, and child exploitation.

Sustainable Value
Creation Process

Due diligence
Identify the negative social, environmental, and economic impacts of an organization's decisions
and activities, and avoid or mitigate those impacts.

Our Stance on
CSR

QCDDMSQCDDMS stands for Quality, Cost, Delivery, Development, Management, Sales. It refers to the

Stakeholder
Engagement

criteria for the evaluation of these factors.

VOC
Volatile Organic Compounds.
Governance

QC circle
QC stands for Quality Control. Quality Control Circles are small groups of employees that
Social Initiatives

undertake activities aimed at improving quality at manufacturing sites.

Environmental
Initiatives

CK specific
Key CSR
Indicators andResults

Monozukuri
Monozukuri refers to the creation of value in all respects, through manufacturing fine products andproviding excellent services in a timely manner to meet customers’ expectations.

About Our
Reporting

QSES
Quality System Evaluation Standard. Calsonic Kansei's proprietary standard for quality systemevaluation.

GEC
GEC: A Conference, chaired by the CEO, which reports, debates, and makes decisions onimportant matters concerning global management.

213

IndexThird-party Opinion

Co-Founder, Think Tank SophiaBank

Top Commitment

Kumi Fujisawa
After having worked for Japanese and foreign investment fundmanagement companies, Kumi Fujisawa founded the first investment
trust evaluation company in Japan. She later sold that company to a

Sustainable Value
Creation Process

global credit-rating firm, and helped establish the think-tank,
SophiaBank. She has interviewed over 1,000 business owners and,through the Davos Conference and other partners, is engaged increating mutually beneficial bonds between the public and private
sectors in Japan and overseas.

Our Stance on
CSR

Evolution into a Committed Report that Considers its Readers
Stakeholder
Engagement

Continuing from last year, I have had the opportunity to read this Sustainability Report again thisyear. I was impressed by the effort that the authors have put into achieving even more innovative
contents and their attention to detail. I can see they have remained conscious of their diverse
readers in various parts of the world. In addition, the key points of the Medium-term Business Plan

GovernanceSocial Initiatives

were incorporated in the graphs and tables showing the Sustainable Value Creation Process,enabling an awareness of the value process in day-to-day work. This evolution is worthy of praise.

A Real Sense of Instilling the Mindset
What most drew my eye in this year’s report was the fact that, throughout the report, one can gaina real sense that the mindset of “independence and initiative” is taking shape within the company.
As the company has welcomed new top executive, it has declared a goal of sustainable

Environmental
Initiatives

management that looks toward the next 80 years. Another highly impressive aspect of the report
was that it not only discusses what the company needs to do to realize that goal from individual
perspectives such as CSR and SDGs, but it also ties them in with the company’s business.
Whether it was the explanations of each domain by the people in charge of them, or the

Key CSR
Indicators andResultspresentation of initiatives being undertaken in various parts of the world, the pride that they have intheir company’s business, and the fact that they are engaged in it with autonomy and on the basisof the elements and perspectives of sustainability really shone through in the report. Through these
individual initiatives, the report has been made easy even for people with little knowledge of

About Our
ReportingCalsonic Kansei to understand, and the relationship between the business and sustainability isvery clear.

214

IndexA Playing Field for Fair Participation by Everyone Around theWorld
As with last year’s report, this year’s report featured comments from employees from the various

Top Commitment

countries about their own approaches to CSR, around the theme of My CSR Declarations. These
short comments show how these individual initiatives are being conducted autonomously, basedon the culture and customs of each region. They also provide an opportunity for employees fromthe various countries to share their wisdom with their colleagues around the world through thisSustainable Value
Creation Processreport. I hope that they will lead to the further evolution of initiatives in each region.
If next year’s report conveys how employees’ actions and approaches have changed and evolved,
I believe it will add to the enjoyment of continued readership of the report.
As I read the messages from people around the world and read about the various company

Our Stance on
CSR

schemes and programs, one thing that concerned me a little was that comparatively more space
was devoted to explanations of Japan-only schemes than to explanations of overseas schemes.
I realize that this is a Japanese company with its headquarters in Japan, but as a company withcolleagues around the world that professes diversity, I hope that these company schemes could be

Stakeholder
Engagement

reviewed to eliminate any regional disparity, so that common global initiatives can be given central
position and the individual initiatives of each country can be presented in equal proportion.
I hope that, after reading the summary report, more readers will be motivated to access the fullreport on the website.

GovernanceI hope that your employees will use even more fulfilling initiatives and ideas in their daily work, andI look forward to seeing these comments from on the ground taking center stage in the report nextyear, to give readers a real sense of change.

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting215

IndexResponse to Third-party Opinion

Top Commitment

Hideaki Watanabe
Executive Vice President and Chief
Strategy Officer
Calsonic Kansei Corporation

Sustainable Value
Creation Process

I would like to thank Ms. Fujisawa for once again providing her valuable observations about our
Our Stance on
CSRGroup’s Sustainability Report.
We have made significant changes to the report based on her suggestions from last year, and weappreciate her words of support and acknowledgement of the improvements made.
In Fiscal 2017, we became independent from Nissan and launched our new Medium-term

Stakeholder
Engagement

Business Plan, named Compass 2021. As part of Compass 2021, we have positioned CSR as oneof the fundamentals of how we run our business, and we will aim to further strengthen the fusion
between management of our business and CSR. This ensures our business is sustainable for thelong term. The Sustainable Value Creation Process is the embodiment of the values our Group

Governanceoffers and our contributions to the SDGs.
This year marks our 80th anniversary of the company’s foundation. As we continue to respond tosocial requirements, such as fostering innovation, protection of the environment, and ethicalcorporate activity, we will maintain our efforts to be a company that will develop in a sustainable

Social Initiatives

way, together with society, for the next 80 years.
Regarding Ms. Fujisawa’s comments about “reviewing company schemes to eliminate any regional
disparity,” we will make further improvements in this regard so we can become “one team” asGlobal CK.

Environmental
Initiatives

We value the opinions of each and every one of our employees around the world and we willcontinue to strive to be a company that acts as a force for good in order to make all our
stakeholders proud.

Key CSR
Indicators andResults

About Our
Reporting216

Key CSR Issues and KPIs
Calsonic Kansei Group KPIs (Key Performance Indicators)
In Fiscal 2015, the Calsonic Kansei Group identified a number of global social issues and evaluated them according to their impact on the company, impact on stakeholders, frequency of occurrence, and degree of risk avoidance response. Based on this, we determined our key issues in line withthe core subjects of ISO26000. Setting KPIs for each of these key issues, we are using the PDCA cycle to pursue initiatives to achieve our targets.
CKJ=CKJ J=Japan O=Overseas ☆=External
Key Issues added as a result of the Fiscal 2017 review of key CSR issues are not applicable in Fiscal 2017 and prior.
◆ will be prepared in Fiscal 2018 and progressively disclosed.
Area

Top
Priority
IssuesKey CSR Issues

Initiatives Already Implemented
or Planned

Current KPIs

1-1) Reduce production sector CO2
emissions (Japan)

FY2017 Target

FY2017 Results

Evaluation

1-1) 20.5% reduction
compared to FY2005 2.5%
year-on-year reduction(Japan)1-1) 31.2% reduction comparedto FY2005 1.6% year-on-yearincrease (Japan)○ Target met

1) Reduction of emission intensity1-2) Reduce production sector CO2
emissions (Overseas)

2) Reduce logistics sector CO2 emissions
Environment●

Climate change
actionProtection of water
resources

Protection of
biodiversity

Environment●

J
Environment & Energy Control
Department

4) Medium-term target set for up
to 2021○ Target met4) Establish long-term
environmental vision andmedium-term
environmental plan◆

CKJ/J/O

5) Introduce external audits

5) ―

5) ―

5) ―

―NA inFY20175) Reconsider
implementation timing

◆

CKJ/J

6) Expansion of target categories

6) Disclose in FY2017

6) (Prioritized setting of mediumterm target)

× Target
Failed6) -Consider disclosure timing◆

CKJ/J☆

1) ―1) Disclose information in theevent of an applicable event○ Target met

1) Disclose information in
the event of an applicable
event

Engage in the protection of water, air, and soil through management and reduction of environmental pollutants
generated by production activities◆

1) No applicable events

Upgrade lighting and optimize air-conditioning◆

2) Reduction of consumption2) 2.0% year-on-year
reduction

1) 8.2% year-on-year increase× Target
Failed1-1) 19.7% reduction
compared to FY2005 2.0%
year-on-year reduction(Japan)1-1) 24.8% reduction comparedto FY2005 1.8% year-on-yearincrease (Japan)○ Target met

1) Reduce water use: Aim to conserve
water resources in corporate activities byreducing water use in production activities

2) Landfill ratio

Reduce use of environmentally hazardous substances

◆

CKJ/J
(Applicable
companies
only)

Continue initiatives for yield improvement and re-use and recycling initiatives

◆

J

◆

1) Reduction of waste generation intensity1-2) Reduce waste (Overseas)

2) 2.0% year-on-year
reduction1-2) 6.9% reduction
compared to FY2010 1.0%
year-on-year reduction(Overseas)

1-2) 16.9% reduction comparedto FY2010 2.4% year-on-yearincrease (Overseas)○ Target met

2) Maintain zero landfill

2) Maintain zero landfill○ Target met

1-1) 23.0% reduction
compared to FY2009 2.0%
year-on-year reduction(Japan)1-1) 31.8% reduction comparedto FY2009 15.2% year-on-year
reduction (Japan)○ Target met◆

2) Maintain zero landfill

Maintain zero landfill

O

O

◆

CKJ/J
Environment & Energy Control
Department

1-2) 5.9% reduction
compared to FY2014 2.0%
year-on-year reduction(Overseas)

1-2) 1.0% increase compared to
FY2014 3.7% year-on-yearincrease (Overseas)× Target
Failed1) Conduct in FY2017

1) Commenced collaboration
with environmental NPOs/NGOs○ Target met

1) Ongoing

◆

CKJ/J

CKJ/J

◆

1) Collaborate with environmental
NPOs/NGOs

1) ―1) Conduct supply chain due diligence

1) Number of companies that haveundergone due diligence

1) 220 companies

1) Rolled out to 225 suppliers○ Target met

1) At least 250 major
suppliers2-1) Horizontal roll-out of green purchasingof equipment (Percentage of basic
agreements concluded with equipment
suppliers)2-1) 100%2-1) 100%○ Target met

2-1) 100%◆2-2) Percentage of agreements obtained
from new accounts

Improving ESG insupply chain

Environment & Energy Control
Department◆◆

1) Usage intensity

J

CKJ/J
Environment & Energy Control
Department

5) Conduct conflict minerals audits andexpand education and awareness-raising●◆

4) Conduct in FY2017

4) Continue supplier surveys regarding
conflict minerals

SocietyO4) ―3) Establish conflict minerals policy

Society◆4) Establish CO2 emission reduction
targets for next medium-term business plan2) Strengthen green purchasing

Society

Establish logistics networks and continue to improve fill rates

J

× Target
Failed2) Zero landfill activities

Environment○ Target met◆

3) 4.26% year-on-year increase

Prevention ofenvironmental
pollution

Effective use ofrecourses

2) 2.4% year-on-year
reduction%

Boundary3) 1.0% year-on-year
reduction1-1) Reduce waste (Japan)●2) 1.0% year-on-year
reduction

Promote energy-saving activities, identify areas for improvement through energy-saving diagnosis and conduct
horizontal roll-out of energy-saving best practice

Responsible Divisions

3) Reduction of emission intensity

2) Reduce use of VOCs

Environment○ Target met◆

2021
Targets

3) Reduce office sector CO2 emissions

1) Conduct soil tests / disclose results /establish clean-up plan●1-2) 21.1% reduction comparedto FY2005 7.7% year-on-yearincrease (Overseas)

Future Initiatives◆6) Develop and implement staged
action plan

Environment2) Reduction of transport tonne-kilometers1-2) 15.8% reduction
compared to FY2005 2.5%
year-on-year reduction(Overseas)

FY2018 Target

Engage in protection of biodiversity through collaboration with environmental NPOs and NGOs

◆

CKJ/J

Environment & Energy Control
Department

CKJ/J/O☆

2-2) 100%2-2) 100%○ Target met

2-2) 100%◆3) Revision and extension of supplier CSR
guidelines

3) Review as appropriate3) Revised and rolled out
supplier CSR guidelines○ Target met

3) Review as appropriate

◆

CKJ/J

4) Number and ratio of companies surveyed

4) 250 companies (*99% of
production value)

4) 211 companies (*99% of
production value)○ Target met4) 250 companies

◆

CKJ/J

5) Not conducted× Target
Failed5) 100%

◆

CKJ/J

◆

◆

◆

◆

◆

◆

5) Staff education participation rate5) 100%Strengthening ofbusiness continuity
management(BCP/BCM)◆◆

Creating social
values throughinnovations◆◆

Create social value by pursuing the development of attractive products with innovative new technologies in thetwo mainstream domains of Energy Control to realize improvements in energy efficiency and environmental
performance and cabin innovations to achieve safe, secure and comfortable next-generation mobility

Purchasing Control Department

CKJ/J

Area

Top
Priority
IssuesKey CSR Issues

Initiatives Already Implemented
or Planned

Current KPIs

FY2017 Target

FY2017 Results

Evaluation

FY2018 Target

Society●

Respect for humanrights1) Conduct human rights education andawareness-raising (as part of CSR training
activities)

1) Training to scope of education target
groups (leave target groups up to eachcompany)

1) Trial in Japan andoverseas

1) Conducted in Japan, and in
Thailand and China overseas○ Target met

Society●

Ensuring workplace
health and safety

1) Prevent workplace accidents

1) Number of lost-time injury accidents

1) None1) 8 cases

× Target
Failed1) Encourage employees to take paid
annual leave
2) Introduce telecommuting

Society●

Promotion of worklife balance

3) Enhance leave and leave-of-absence
systems (salary, duration, shorter working
hours, etc.)

1) Percentage of annual leave taken

SocietySocietySociety

●

●

●

●

Society

Promotion ofdiversity○ Target met

Boundary1) Conduct at all locationsin Japan and overseas◆

CSR/PR & IR Department
Human Resources and Operation
Department

CKJ/J/O☆

1) None◆General Support Department

CKJ/J

◆

Human Resources and Operation
Department

CKJ

Human Resources Planning
Department

CKJ

1) 83%―

2) Conduct in FY2017

2) Introduction of satellite offices○ Target met

2) ―

◆

3-1) Review scheme asappropriate3-1) 100%―NA inFY20173-1) Expand program◆3-2) Number of employees who took nursing
care leave3-2) Review scheme asappropriate3-2) 1―NA inFY20173-2) Expand program◆4) Introduce return-to-work
program4) Not conducted× Target
Failed4) Introduce return-to-work
program◆

CKJ

1) Disclose in FY2017

2) Not conducted× Target
Failed1) Reflect in medium-term
HR plan◆

CKJ/J

2) 1.99%

× Target
Failed2) 2.2%―

3) Double compared to2015◆1) Establish basic diversity philosophy andmedium-term action vision―

2) Recruitment of diverse personnel

2) Ratio of employment of people withdisabilities

2) 2%

CKJ
Human Resources and Operation
Department

CKJ

CKJ
Human Resources and Operation
Department

3) Encourage active participation by
women3) Ratio of female managers (2020)3) -3) 2.4%―NA inFY20174) Establish schemes for re-employment of
employees who have resigned due tochildbirth, child-raising, etc.

-

4) Conduct in FY2017

4) Not conducted× Target
Failed4) Finalize year to
introduce scheme◆

1) Review educational framework

1) ―1) Under consideration

1) Conducted (added training for
selected young leaders andenhanced management training)○ Target met

1) Review as appropriate◆

Human Resources and Operation
Department

CKJ/J

2) Conduct CSR education (e-learning,etc.)2) Training to scope of education target
groups (leave target groups up to eachcompany)

2) Trial in Japan andoverseas2) Conducted in Japan, and in
Thailand and China overseas○ Target met2) Implement at all
locations in Japan andoverseas◆

CSR/PR & IR Department

CKJ/J/O

Improving customer
satisfaction

1) Incorporate customer feedback

1) In-house customer satisfaction survey
score1) At least 3.38

1) 3.43○ Target met

1) At least 3.45◆

Sales Strategy and Planning
Department

CKJ/J/O☆

Quality improvement

1) Cultivate and increase in-house QSES
auditors

1) Number of auditors

1) At least 200

1) 210 persons○ Target met――

Quality Planning & Quality
Control Department

CKJ/J/O

Dialogue between
management andemployees

1) Review evaluation systems（Fair personnel evaluation）―

1) Review as appropriate
and make improvements

1) Review completed○ Target met◆◆

Human Resources and Operation
Department

CKJ

1) Invest in social contributions

1) Activity spending

1) Maintain at least FY2015
level1) Achieved at least FY2015
level○ Target met

1) Maintain at least
FY2015 level◆

General Support
Department/Environment a
Energy Control
Department/CSR/PR & IR
Department

CKJ

2) Introduce and operate volunteering
programs

2) Introduction of revised system

2) Finalize

2) Not conducted× Target
Failed2) Conduct―

Human Resources and Operation
Department

CKJ◆

General Support
Department/Environment &Energy Control
Department/CSR/PR & IR
Department

CKJ/J☆

◆◆◆◆

CSR/PR & IR Department

CKJ/J/O

Human resources
development

Promotion of social
contribution
activities

Society1) 83%

Responsible Divisions

3-1) Ratio of return to work from maternity
leave and childcare leave4) Enhance childcare and nursing care
support systems

Society1) 80%

2021
Targets

Future Initiatives

3) Select and collaborate with NPOs andNGOsSociety

Productivity
improvement◆

Governance●

Promotion of ESG
Risk Management

1) CSR Audit by third-party organization(Third-party Opinion of Disclosed
Information)

Governance●

Strengthening
compliance1) Strengthen compliance / expand
education and awareness-raising3) ―3) Finalize

3) Finalize○ Target met3) Conduct

◆

―

―

Conducted○ Target met◆

1-1) Percentage of global Code of Conduct
education undertaken and pledges collected1-1) 100%1-1) 100%○ Target met

1-1) 100%◆Strengthen compliance / expand education and awareness-raising

CKJ1-1) 100%1-2) None1-2) None1-3) Number of whistleblowing cases―

1-3) 347 cases

1) Strengthen information security andexpand education and awareness-raising

1) Ratio of education undertaken1) 100%1) 100%2) Conduct external audit of information
security

2) External audits conducted2) Conduct

2) Conduct○ Target met2) Conduct

GovernancePrevention ofcorruption andbribery1) Conduct education and awarenessraising on bribery

1) Percentage of corporate officers andemployees of relevant departments receiving
education1) 100%1) 75%

× Target
Failed1) 80%

Conduct executive training

1) 100%Compliance Department

CKJ/J/O

Governance

Maintenance anddisclosure of
appropriate tax
administration

1) Action on OECD transfer pricing
guidelines, etc.

1) ―1) Action on OECD transfer
pricing guidelines, etc.

1) Action being taken○ Target met

1) Action on OECD
transfer pricing guidelines,etc.

1) Action on OECD transfer pricing guidelines, etc.

1) Action on
OECD transfer
pricing
guidelines, etc.

Tax Administration Department

CKJ/J/O●

Strengthening
information security○ Target met

1-2) None

Strengthen compliance / expand education and awareness-raising

1-2) None―

Strengthen compliance / expand education and awareness-raising―

CKJ/J/O
Compliance Department

1-2) Significant compliance issues

Governance○ Target met

1) Incorporate customer feedback

CKJ

1) 100%CKJ/J/OCKJ/J/O

1) 100%CKJ/J/O
Compliance Department
Corporate IT Department

2) Conduct

CKJ/J/O