2015
Sustainability Report*This photograph shows the Sakitama Ancient Tomb Park, the originof the name of Saitama Prefecture, where our Headquarters is located.

2015 Sustainability Report
Contents
1. Editorial Policy

2

2. Message from the President

3

3. Business Outline• Growth Objectives (Mid-Term
Management Plan)

4• Product Descriptions

5• Company Profile, etc.

7

• Business Locations

9

4. Policy Initiatives• Dialogue with the President

9. Environment• Green Concepts and Environmental
Management38• Environmental Accounting

43• Management of Chemical Substances45• Efforts Towards an Environmentally
Balanced Factory47• Recycling Activities

53

10. Fair Business Practices• Compliance54• Information Security

57• Export Control

58

11. Consumer Issues• Quality Initiatives

59

12• Corporate Philosophy and CSR Policy

16• ”First Year of CSR” Activity Plan

19

• CSR Materiality20

5. Development of Eco-Products

21

6. Corporate Governance• Basic Principles and Systems of CK’s
Internal Control

27• Disclosure of Open Information

30• Risk Management

31• Disaster Prevention

32• Communication with Customers

62• Supply Chain Management63

12. Community Participation andDevelopment

65

13. Reference Materials• CSR Materiality and KPI Results

69• History of Calsonic Kansei

70• Financial Reports

71• Environmental Performance Data73

7. Human Rights• Basic Personnel Philosophy and
Policies towards Human Rights

33• Human Resource Development

34• CSR Guidelines for Suppliers

77• Fair Personnel Evaluation Systems

34• GRI Guideline Comparison Table81

8. Labor Practices• Respecting Diversity

14. Third-Party Opinions87

15. Editor’s Notes and Acknowledgments

88

35• Communication with Employees

35• Occupational Health and Safety36

1

1. Editorial Policy
Calsonic Kansei has decided to establish a new department responsible for CSR in its Corporate Headquarters from the2015 fiscal year, and is taking steps for full-scale activities with this as our “First Year of CSR”.
As part of the preparatory activities that we have been proceeding with since the previous year, we published our 2014
Sustainability Report at the end of the year, for the first time for us to publish such a report, to release information on ourcompany’s activities to stakeholders in an organized format. From the 2015 fiscal year, we are promoting activities withplans that span across multiple fiscal years, centered on our new organization, and are beginning to take action towardachieving an even better society. We are also making efforts to enrich our activity policies that will be released publicly
as well as various activity content, such as by clearly identifying our parameters.
The Environmental Report that was prepared separately in the past will be included as a part of the Sustainability
Report starting from this edition.
With regard to our Financial Reports, they will be included only as general outlines, just as in the previous edition. For
details, please refer to the Business Reports, Statements of Accounts, and Yearly Financial Statements on our
homepage.
Since the previous fiscal year was considered to be our preparation period, we released the information in the
Sustainability Report at the end of December, but from this fiscal year onward it will be released to coincide with theBusiness Report of the General Meeting of Stockholders.
Note that the Sustainability Report for this company is only available on our homepage.
The report has been prepared so that each item can also be downloaded separately in PDF format for your use.

Outline of Other Editorial Items● Applicable scope
The applicable time period shall basically be the 2014
fiscal year (April 2014 to March 2015), with any
exceptions clearly described in the text.
In terms of the organization, the content includes boththe independent activities of the Calsonic Kansei
Corporation and also those carried out by its Group
companies.
Explanatory notes are provided for independent activity
reports.
● Issue date of previous report edition
The first edition of the report was issued in December
2014.
● Frequency of reports
Issued 1 time per year.
● Reference guidelines
A table for comparison with GRI guidelines is provided at
the end of the report.
It references the G4 Core guidelines.
● Third-party opinions
Third-party opinions regarding this report are provided at
the end of the report.

● Approvals for various general rules related to theenvironment, society, and management
Calsonic Kansei agrees with the content of activities
indicated by ISO26000, Global Compact, and the Charterof Corporate Behavior of Keidanren (Japan Business
Foundation), and supports them as importantmanagement indexes.
● Contact window for questions regarding this report〒331-8501
2-1917 Nisshin-cho, Kita-ku, Saitama-city, Saitama
Calsonic Kansei Corporation
Corporate Planning Division
CSR / Public Relations & IR GroupTEL 048-660-2161
e-mail ckcsr@ck-mail.com● Notes
Although forecasts are included in this report, please beaware that actual results may differ due to various
industry-related factors.

22. Policy Initiatives - Message from the President
Achieving a “Great Company” driven by dreams and innovations, andcontributing to resolving social issues through our business activities.
Initiatives for our “First Year of CSR”: Dreams - to be a company
that values people
Since taking on the role of President, I have tried to convey the concepts of “a company that isa feared competitor” and “a company that makes you want to work together with it” to ourpersonnel, as images for becoming the “Great Company” that is one part of our Mid-Term
Management Plan. CSR is closely linked with the idea of “a company that makes you want towork together with it” which is one image for our achievement of this “Great Company”, and wehave proceeded with preparations for related activities after specifying that this fiscal year
would be Calsonic Kansei “s “First Year of CSR”.
This fiscal year, we will organize the activities that have been undertaken by individualcommittees up to this point into the framework of CSR, and push them forward even farther.
We will also take steps to respond to the social issues of environmental problems and climatechanges through our businesses. In addition, we will adopt a more fulfilling system for
employees to maintain a work-life balance, and strive to realize sound and fair management.
Also, through our business activities, we will unify as an entire company to provide sincere andresponsible support to all of our stakeholders including those located overseas, at both thecompany level and individual employee level.
While we will of course strive to become a “Great Company” this fiscal year by organizing these
activities into our “CSR Mid-Term Activity Plan”, we will also proceed with activities over a multiyear plan that will aim for the continuing development of society and our company.

Taking on challenges for unending self-reformation: Innovations - ongoing technologicalinnovations and innovations in Monozukuri
Over the past 20 years, the stagnation of the economy of Japan has been made apparent, and the government has taken steps toward theexecution of various related policies. The enactment of the “Japan’s Stewardship Code”, which facilitates long-term improvement of values
for corporations through dialogues held with corporations for institutional investors, and the “Japan’s Corporate Governance Code”, whichapplies the disclosure of non-financial information, promotion of the activities of women, and appointment of independent outside directors,
to corporations, are some examples of them.
Even while Japanese companies lag behind the rest of the world from the viewpoint of such policies, they are approaching a great turning
point where they will need to stand and face the global age. Our company’s decision to voluntarily and actively begin measures for CSR at
this time has a deep meaning, and I believe it signifies that we are taking steps to reform ourselves into a “great” company through our CSR
activities.
In our manufacturing industry, success hinges on how well we can offer excellent products and services to our customers, with the great
innovations in technology and Monozukuri that have been made in the past being widely known. In order to establish a brand, it goes
without saying that products must have outstanding quality, but today even the nature of companies themselves can be called into question.
I would like for us to actively incorporate the ideal state of management demanded by the “Japan’s Corporate Governance Code”, which
can be viewed as a global standard, and to furthermore proceed with the concepts of refining our response capacity, making boldchallenges to become unique and the best, and thoroughly promoting the conversion to explicit knowledge.

Looking toward becoming a “Great Company”
Even amid severe forecasts for the future, we are coming closer to reaching the goals outlined in the economic objectives of our “G×4 T10”
Mid-Term Management Plan thanks to the cooperation and support of our customers and business partners, and the efforts of ouremployees. However, we have recognized within the company that becoming a “Great Company”, one of the 4 G’s in the Mid-Term
Management Plan, does not only involve economic aspects. This is the reason that CSR was brought to attention, as a ruler to measure its
fulfillment.
Although the goal of the CSR Mid-Term Activity Plan is 2 years later than the Mid-Term Management Plan goal at the end of the 2016 fiscal
year, I would like to define solid milestones and proceed with activities that aim to achieve the Mid-Term Management Plan goals. Throughdiscussions with a variety of stakeholders, I would like Calsonic Kansei to refine our sensitivity to the global situation, take measures toresolve social issues through our businesses, and contribute to the sustainable development of society.

Calsonic Kansei Corporation
President and CEO

Hiroshi Moriya

33. Business Outline - Growth Objectives (MidTerm Management Plan)
Creating environmental technologies and products that can lead the world
with our CK GX4 T10 Mid-Term Management Plan.
Calsonic Kansei announced its Mid-Term Management Plan in June 2011.
Its name of “CK GX4 T10” signifies that between 2011 and 2016, it will complete “achievement of T10” by executing
growth strategies focusing on the key points of its 4 G’s - namely, “Green”, “Growth”, “Global”, and “Great Company”.
We believe that the most significant contribution to social issues that can be made through our business activities isthe development of eco-products, and this is being carried out as an important activity in the Mid-Term Management
Plan.

The 4 G’s for our Growth Strategies
GrowthEmbracing Growing Demand for Small/Low
Cost Cars
Business Expansion in Emerging Countries

Green
Introducing Eco-Technologies/Products to
Lead the global competition

GlobalStandardization of Global
Management/Operational Processes

Establishing the Corporate Foundation for Great Company
We will comprehensively advance efforts for “Green”, “Growth” and “Global”,
and establish a corporate foundation appropriate for a “Great Company”,
with the aim of the three T10 points.
Achievementof T10the Global Competition
1. 10New Eco-Products Leading
2. Global Top 10 Automotive Suppliers in Sales(over 1Trillion yen)
3. Global Top 10 Automotive Suppliers in Operating Profit(7% level*1)*1 : Ratio over Value-added Sales

4

3. Business Outline - Product Descriptions
Product Descriptions

Cockpit modules and interior products
Providing comfort with ease of use, anattractive appearance, and a pleasantfeel, as well as safety during driving.

Other products• Instrument panels• Consoles• Steering members

Cockpit module

Electronic
products
Providing safety and comfort for
automobiles, such as throughenvironmental products related toelectric vehicles, and easy-to-read,easy-to-use control devices.
Other products• Inverters• Body control modules• Keyless entry• Occupant detection systems

Meter
Lithium ion battery
controllers

Heat exchanger
products
Providing low fuel consumption andhigh comfort by efficiently controllingthe heat energy of engine coolingwater, refrigerant, air, oil, and exhaustgases.
Other products• Front-end modules• AT oil coolers and warmers• Charge air coolers• EGR coolers

Motor fanCondenser

Radiator5

3. Business Outline - Product Descriptions

Climate control
products
Providing a clear field of view and acomfortable interior space foroccupants anytime, anywhere,
regardless of the season.
Evaporator
Other products
Intake blower unit

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

Compressors

Air conditioning unit
Heater core

Fixed displacement
compressor

One component of the air
conditioning system. Compressors
circulate coolant in the refrigeration
cycle to cool an interior space.
They function as the “heart” of thesystem. With small sizes and highefficiencies, they are able toreduce environmental impacts.

Variable displacement compressor

Exhaustproducts
Providing environment-friendly products
able to effectively balance conflicting
demands for noise reduction, exhaustgas purification, engine output, etc.

Exhaust system

Other products• Exhaust manifold converter• Valves• Oxidation catalytic converter systems for diesel
applications• Diesel particulate filters

63. Business Outline - Company Profile, etc.
Profile of Calsonic Kansei
Company Name

Calsonic Kansei Corporation

Location of Headquarters

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

Major Countries with Business America, Mexico, Brazil, United Kingdom, Spain, France, Germany, Romania, Russia, China, Malaysia, South Korea,
LocationsThailand, India

Main Products

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

Total Number of Offices

Consolidated: 34 offices (as of March 31, 2015); under the equity method: 15 offices (as of March 31, 2015)

Total Number of Employees

Consolidated: 20,904 (as of March 31, 2015)

Major Clients

Audi AG, Isuzu Motors Limited, Opel, Saab Automobile AB, General Motors Corporation, Suzuki Motor Corporation,
Daimler AG, Nissan Motor Co., Ltd., BMW AG, Peugeot S.A., Ford Motor Company, Volkswagen AG, Fuji Heavy
Industries Ltd., Honda Motor Co., Ltd., Mazda Motor Corporation, Mitsubishi Motors Corporation, UD Trucks
Corporation, Land Rover, Renault S.A.

Stock ListingFirst section of the Tokyo Stock Exchange

Number of Stockholders

8,073 (as of March 31, 2015)

Total Assets

459.8 billion yen (as of March 31, 2015)

Major Stockholders and Stock
Nissan Motor Co., Ltd., 40.7% (as of March 31, 2015)
Holding Ratios
Major Member Organizations Japan Auto Parts Industries Association, Japan Electronics and Information Technology Industries Association

Business
Records

Independent

Consolidated

Continuing from the previous year, in the 2014 fiscal year we recorded our highest sales volume andoperating profits ever achieved.
Trends in operating profits
Trends in sales volume

7,823

400

9,656

9,187

10,000

288

300

7,609

316

220
4,169

3,584

3,575

0

2011
2012
2013
Trends in equipment investments

300

215

249

2014

292

0
2013

2011

243

100

2012

77

103
39

2014

77

40

0

300

200

2011

100

2012

Trends in development expenses

x100 million yen

x100 million yen

3,218

x100 million yen

x100 million yen

200
5,000

235

238

2011

2012

2013

2014

271

277

2013

2014

200
100
0

7

3. Business Outline - Company Profile, etc.
Data by Region
Number of Employees by Region(End of Fiscal Year)Sales Volume by Region
Sales Volume for Fiscal
Year 2013(x100 million yen)

Sales Volume for Fiscal
Year 2014(x100 million yen)

3,871

3,520

Japan

Number of Employees
for Fiscal Year 2013
(people)Number of Employees for
Fiscal Year 2014
(people)

Japan

6,812

6,692

4,848

5,426

North
America

2,956

3,602

North
America

Europe

1,047

1,231

Europe

2,113

2,175

Asia

1,953

1,955

Asia

6,500

6,611

Consolidated
adjustment

△641

△652

Total

20,273

20,904

Total

9,187

9,656

Distribution of Economic Value (Consolidated)
Distribution Target

Fiscal Year 2013 (x100
million yen)

Fiscal Year 2014 (x100
million yen)

Reference Notes

Customers

9,187

9,656 Sales to customers

Business partners

7,864

8,248 Purchases from business partners

Employees

1,034

1,092 Payment of salary to employees

Stockholders

20

20 Redistribution of profits to stockholders

National government andregional municipalities

39

63 Payment of taxes, etc.

Company in-house

230

181 Strengthening of business structure for the future

Social contribution
investment amounts*

33,874

Amount included in the “Business partners” and20,935 “National government and regional municipalities”
items above*Excluding personnel expenses. (units: 1000 yen)

Employee Information (for Calsonic Kansei Corporation, independently)

Number of regular
employees
Breakdown: Males
Females
Average age
Length of continuous
employment
Turnover rate (personal
circumstances)
Average yearly salary
Rate of employment ofpeople with disabilities
Number of employees
obtaining child care leave
Number of employees
obtaining nursing care leave

Units

Fiscal Year 2012

Fiscal Year 2013 Fiscal Year 2014

people

3,615

3,577

3,622

people

3,344
271

3,300
277

3,346
276

years

44.0

44.6

44.2

years

19.8

20.3

19.6

%

1.2

1.3

1.2

yen

5,939,869

5,877,960

6,055,373

%

1.87

1.89

1.83

people141415

people0128

3. Business Outline - Business Locations
Major Overseas Offices

RussiaUnitedKingdom
FranceRomania
China
Spain

Germany
South
Korea

India

United Kingdom
Calsonic Kansei Europe plc.
Calsonic Kansei UK Limited
Calsonic Kansei Sunderland Limited

Thailand
Malaysia

Japan

China
Calsonic Kansei (China) Corporation
Calsonic Kansei (Wuxi) Corporation
Calsonic Kansei (Shanghai) Automotive Technology R&D
Co., Limited
Calsonic Kansei (Guangzhou) Corporation
Calsonic Kansei (Xiang Yang) Corporation
Calsonic Kansei (Wuxi) Components Corporation
Calsonic Kansei (Guangzhou) Components Corporation
CK KS Engineering (Guangzhou) Tooling Center
Corporation
Calsonic Kansei (Haimen) Corporation
Calsonic Kansei (Shanghai) Corporation
CK Electric Machinery Development (Shanghai) Co., Ltd.
South Korea
Daihan Calsonic Corporation
Calsonic Kansei Korea Corporation
Malaysia
Calsonic Kansei (Malaysia) Sdn. Bhd.

Spain
Calsonic Kansei Spain, S.A.

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

RussiaCalsonic Kansei RUS LLC

India
Calsonic Kansei Motherson Auto Products Limited

Romania
Calsonic Kansei Romania S.R.L.
FranceCalsonic Kansei Europe plc. France Branch Office
Germany
Calsonic Kansei Europe plc. German Branch OfficeAmerica
Calsonic Kansei North America, Inc.

America

MexicoCalsonic Kansei Mexicana, S.A. de C.V.
BrazilCalsonic Kansei do Brasil Industria eComercio Ltda.

MexicoBrazil9

3. Business Outline - Business Locations
Major Japan Domestic Offices
Domestic
Offices

Plants

R & D Center, Headquarters

Gunma Plant

Testing Research Center
Calsonic Kansei Iwate Corporation
Calsonic Kansei Yamagata Corporation

Yoshimi Plant

CKF Corporation, Headquarters andNihonmatsu Plant

Calsonic Kansei Utsunomiya Corporation
Testing Research Center
Gunma Plant

Production Engineering Center

Kodama Plant
CKP Corporation Tochigi Plant

CKP Corporation
Headquarters / Sano Plant

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

Kodama Plant

CKP Corporation
Itakura Plant

CKK Corporation Nakatsu Plant
CKK Corporation, Headquarters / Usa Plant

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

Oppama Plant
Tokyo Radiator Mfg. Co., Ltd.

Oppama Plant

Domestic Group Companies
CKK CorporationCKF CorporationCKP Corporation
Calsonic Kansei Utsunomiya Corporation
Calsonic Kansei Iwate Corporation
Calsonic Kansei Yamagata Corporation
Tokyo Radiator Mfg. Co., Ltd.

KS Engineering Co., Ltd.
CK Engineering Corporation
Calsonic Kansei Business Expert Corporation
CK SALES Co., LTD
NP Kasei Co., Ltd.
Nisshin Kogyo Co., Ltd.
Iwashiro Seiki Co., Ltd.

10

3. Business Outline - Business Locations(Development Information Network)
Global Development Bases

We have built development bases in 7 countries around the world (including Japan), with roughly 2700 development staff
members assigned to them.
In cooperation with CK Engineering Corporation in Shanghai, China, and Calsonic Kansei Engineering Center India with L&T(CECI-L&T) in Chennai, India, we have established centers that are equipped with development engineering functions.
Europe (United Kingdom, France)

Japan

North America (U.S.A.)

Calsonic Kansei CK Engineering

Calsonic Kansei CKEngineering

Offshoreengineering center

India

ThailandNorth America (Mexico)

China

Construction of technological information platforms to support global technology development systems
Construction of a global PDM (*) system able to sharelarge amounts of data via the Internet at high speeds, withhigh reliability, and at low cost (first in the world).

Connections to bases in North America, Europe, andChina were completed before the end of the 2014 fiscal
year.
Connection to the remaining bases is scheduled for the2015 fiscal year.

Central management of product data (3D data, drawings)
is effective at shortening the time required for global
production deployment and for quickly reflecting on-site
requirements in designs.
PDM(*): Product Data Management

Akamai Technologies, Inc. Internet Environment
147,000
Servers

2,380
places92
countries

1,220
Networks• Cache and route optimization technology⇒Speed, Stable and Secure

Designers
in Japan

CK Global
PDM server

Designers
in China
Designersin Thailand
Designers in America
and Mexico

Designersin theUnitedKingdom

Designers
in India11

4. Policy Initiatives - Dialogue with the President
Start of full-scale activities for Calsonic Kansei’s “First Year of CSR”
Becoming a “Great Company” through the fusion of Gx4 T10 with CSR
In continuation from last year, Masahiko Kawamura, Senior Researcher (ESG Research Office Manager) of the NLI ResearchInstitute, an expert in CSR research, held a discussion with our company’s President Hiroshi Moriya on the CSR initiatives of CalsonicKansei. With this as our “First Year of CSR”, they spoke in depth about our forthcoming initiatives, including the activities carried out
in preparation up to this point.

NLI Research InstituteSenior Researcher and ESG Research
Office Manager

Hiroshi Moriya

Masahiko Kawamura■ Looking back on past preparations
Kawamura: As I recall, we had a very interesting and lively conversation last year (laughter). Since decisions were made last year on
enhancing your CSR activities, looking back on this year what kinds of preparations and system arrangements were made?
Moriya: First of all, we were able to publish our “Sustainability Report”. This report makes it fully clear what kind of company we are and what
we are intending to do. It describes our current positioning and also where we want to be. It has been evaluated highly both inside andoutside the company, so it’s very valuable when giving explanations to outside parties.
We have also seen an increase in various inquiries from outside parties. One of them was an NGO managed only by high school students
called the “Highschool International Conference”. They had seen our Sustainability Report on our homepage, agreed with our activities, andcontacted us. We approved of their activities as well and decided to give our support to them. They are carrying out activities with a truly
admirable awareness of problems, thinking of what they can do themselves to help resolve international social issues.
Kawamura: So this Report is an important part of your corporate branding, helping to raise awareness of social issues and create
supporters.
Moriya: In terms of our system, this April we set up a dedicated department for CSR. It is combined with Public Relations and IR, but fromnow on it will act as a center for CSR activities.
In response to a comment you gave during our last dialogue, we looked into the evaluation tools of the “Sustainable Management Forum ofJapan” that you are affiliated with for the due diligence of suppliers, particularly suppliers in developing countries, and we started evaluating
the domestic companies most closely involved with us. By using this tool, we will be able to clearly understand our strengths andweaknesses.
Furthermore, we remodeled our 1st floor lobby after collecting ideas from employees through public invitation, in order to improve
communication with our visitors. We added additional EV chargers in easy-to-use locations, available for 24-hour use by anyone, even people
outside of the company.

12

4. Policy Initiatives - Dialogue with the President
Kawamura: I saw those chargers when I came onto your premises. From what I remember, last year they weren’t very easy forpeople from outside the company to notice, were they? I also heard about your lobby renovation earlier. This is sure to help raise
the awareness of CSR even further. It seems that after finishing such a wide range of preparations, your enthusiasm is only
growing more and more.

■ CK’s Vision and CSR Policy
Kawamura: Next, could you tell me specifically what kind of vision and policies you have in mind for CK’s “First Year of CSR”?

Moriya: To begin with, we have our “Corporate Vision”. Based on this, we also have our CSR Policy. CK’s CSR Policy is defined as“Responsibilities and guidelines we promise to execute for all stakeholders and society, in order to realize our Corporate Vision.” Our CSR issues
have been clarified based on this policy, and we will address them with our goal set for the end of the 2018 fiscal year. Currently we are in the stageof preparing our action plans.
Kawamura: It’s a perfect example of a mid-term
plan. What are you thinking of for the long term?
Moriya: The Mid-Term Management Plan is approachingits end point in the 2016 fiscal year. We are currently
working together with young employees in formulatinga new Mid-Term Activity Plan for the period from the 2017 to 2020 fiscal years.
To do this, we are intending to look ahead to around fiscal year 2025.
At this time, we will of course need to be conscious of oursales performance, but we also believe there is a need tothink of where we want CK to be in terms of CSR.
Kawamura: It’s very impressive that you are looking 10
years into the future with a 2025 management plan,
including CSR and working together with young people.
Moriya: Also, we held an event recently (5/19) where
discussions on diversity were conducted. I am personallyputting particular importance on the issue of diversity.
Although we are involved in various activities related to it, diversity is necessary
for us to grow further in many different aspects, and I consider this to be one of
the keywords for the next term’s Mid-Term Management Plan. CK’s largest
customer is Nissan Motor Co., but we must also think about diversity with othercustomers as well. Since CK is a company originally formed through the
combination of Calsonic and Kansei, we need to draw on our qualities of diversity like this and bring out synergy.
One example of this would be diversity in management. Our executive structure includes personnel from 4 countries, but I still don’t believe this issufficient.
Kawamura: In the end, I believe that diversity means having a variety of different values. Specifically, it may involve various aspects like “products”,“management”, or “employees”, but ultimately it means combining the various values that they each have and integrating them to create newvalues. After hearing your plans, I think it would be excellent for you to also deploy them to the supply chain.
Moriya: Regarding the supply chain, we are developing our past “Green Procurement Guidelines” into “Supplier CSR Guidelines”, and will deploy
them in sequence globally to serve as purchasing policies.
We are also proceeding with raising the awareness of employees. One step in this is publishing a weekly “CSR Leaflet” and issuing it to all
employees. it is published in a single-page A4 format and includes current topics and small tidbits of knowledge.
Kawamura: So it’s like a newsletter, isn’t it? It might be a good idea to have them available in the lobby for customers to read too.

■ Important issues for this fiscal year
Kawamura: Incidentally, what are you considering to be the important issues for this fiscal year?
Moriya: CSR issues, first of all. We will set objectives for these issues and clearly define KPIs that can be evaluated. We will then create mid-termplans to achieve them. I would like to deploy these plans as soon as possible.
Kawamura: Once the mid-term plan drafts have been determined to a certain extent, I think it might be good to hear the impressions of them frommajor Group companies and external parties before fully finalizing them. You could find out the sincere opinions and feelings of various people
through engagement by holding dialogues. Then, it would be the company’s role to make the final decision of what to do. Of course, you would also
be required to fulfill your obligations for accountability.

134. Policy Initiatives - Dialogue with the President
Moriya: That sounds like a great idea. Even though we are of course taking action globally, once we have a springboard set up we could
ask people “This is what we are intending right now, but what do you think?” and get their comments. I definitely would like to consider it.
Kawamura: Even though you may have established a specialized CSR department system in your Headquarters, it’s also important as apart of CSR to collect information quickly from overseas, particularly developing countries.
You need to intentionally create mechanisms to collect information about topics like human rights, labor, and the environment.
Moriya: Even though we haven’t currently gone that far yet, we do have abest practice called “Compliance”. There are officers in our Headquarters,
and also regional officers set to each local region.
Kawamura: Yes, I’m actually also quite familiar with CK’s complianceactivities. With the top-level management actively wanting to create suchan outstanding activity system, I think there is no doubt that activities willproceed smoothly.
Moriya: We are also providing Committee reports every month.
Kawamura: Compliance is an important element of CSR, and CK’s
compliance activities are an excellent CSR model. That was one of thethings I wanted to be sure to tell you today.

■ Response measures to address CSR issues
Kawamura: Please tell me a little more about how you are thinking about CSR issues, particularly risks, and also how you will identify
them.
Moriya: There are various on-site risks that are difficult to visualize from Japan. In developing countries as well, we have mechanisms forreports to be made on human rights and labor problems, and on the occurrence of accidents. Preventing problems before they happen isvital, and so it is important for us to expand our measures not only for compliance, but also for heath and safety, and the environment,
and to include our business partners in them. It goes without saying that problems will be reported after they happen, but that is alreadytoo late. Our Group has 77 business locations, and we always tell them to stress “transparency”. It is the nature of CK not to have an
atmosphere where things are kept hidden.
Kawamura: That aspect is completely different among different companies. If incidents like scandals are handled poorly, the power of an
entire corporate brand, not just its products, can be severely damaged. It all depends on a company’s climate, how quickly negative
events are brought to light. This is something that the top-level staff must keep on emphasizing.
Moriya: Rather than getting angry, I always take a stance of thinking about how to prevent problems from happening again. I think it
would be excellent for our company’s open atmosphere to develop even further.
Kawamura: This is precisely the intent of the two codes set forth by the Financial Services Agency (Japan’s Stewardship Code, Japan’s
Corporate Governance Code). Investors are also becoming more likely to look closely at non-financial information.
Moriya: I thoroughly feel that “integrity”, which you mentioned to me during our last discussion, is a wonderful concept.
Kawamura: Please move forward while keeping that feeling in mind.

■ Initiatives to address global risks
Kawamura: By the way, looking at global risks, how is CK considering the risks particularly associated with climate changes?
Moriya: I believe that in terms of our industry, as long as we continue to operate vehicles that use fossil fuels, climate changes will be amajor issue. Even if we want to fix this problem by ourselves, it is not possible for us alone. It is an issue for the industry as a whole.
The first step would be to develop products with low fuel consumption, and furthermore to develop EV products. Our biggest challenge
will be to continually provide these kinds of products to our customers and to make contributions to the environment. In our current MidTerm Management Plan, we have a goal to release 10 eco-friendly products by the end of the 2016 fiscal year, and so far we havealready released 7. We have prospects for the remaining 3 as well.

14

4. Policy Initiatives - Dialogue with the President
Moriya: Even in the next period’s Mid-Term Management Plan, we are now thinking of the objectives for the 2020 to 2025 period. Thisinitiative is strongly connected to our business, contributing to society at the same time as raising our corporate values, and we willcontinue to address it in the future as well.
Kawamura: There are also risks that exist on the supply chain, such as flooding in Thailand, which is highly susceptible to climaterelated risks, and salt damage in Bangladesh, a country with a low sea level. The ability to recover from risks is known as “resilience”.
How are you thinking about your resilience to risks like these?
Moriya: We are thinking of two ways to respond. The first is preparing other suppliers in case something happens, which is of course
necessary in a management sense. However, we also share the risks faced by our business partners and so as a second measure weare wondering if there is anything that we could do to address them together.
Kawamura: Even though I haven’t checked for myself and so don’t know if it is true, I have heard that a certain automobile manufacturer
has an understanding of their suppliers 10 levels deep. How about CK?
Moriya: Although our company probably has very few if any supply chains that go as deep as 10 levels of suppliers, the truth is thatexcept for certain products, we have not carried out measures like this. Since this is a business risk, we are aware that this needs to bedone at some point.
Kawamura: This means that you need to think about “products” and “processes”, or in other words, “merchandise” and “supply chains”.
Moriya: Yes, that’s right. Up until now, most of the time we have been saying “we will do this”, but lately we have become able to say “weare doing this” instead. As you mentioned in your comments, I would like to carry out engagement through dialogues with internal andexternal stakeholders.
If we have another opportunity for discussion, I will probably be able to tell you more about our CSR issues and action plans.
Once again, this was a very productive and highly fulfilling conversation. Thank you very much.

15

4. Policy Initiatives – Corporate Philosophy and CSR Policy
Corporate Vision, Missions, Values, and CSR Policy
Corporate Vision, Missions, and Values

Philosophy of the Calsonic Kansei GroupThe Calsonic Kansei Group has set a “Corporate Vision” that is theideal state it aspires to, “Missions”, and the “CK Way” (Values)
which consists of guidelines for employee conduct in order toachieve the Corporate Vision, and is engaged in business
management based on social ethics.

Position of CSR Policy
The Calsonic Kansei Group’s goal is to lead the industry
through Monozukuri activities in our automobile society
and as a member of the global society, and to continue toprovide new values.
To do this, we must fulfill the trust and expectations
placed on us by all of our stakeholders including ourcustomers and business partners, and must move
forward and develop together.
Under the awareness of these points, the CalsonicKansei Group has defined its CSR Policy.

CSR Concepts of the Calsonic Kansei Group

Our CSR Policy includes responsibilities and guidelinesthat we promise to execute for all of our stakeholders andsociety, in order to realize our Corporate Vision.
Based on this policy, each employee contributes tosociety’s sustainable development by conducting his or
her daily operations with an awareness of social
responsibilities and with well-set business managementbalanced between social, environmental, and economic
aspects.

CKLC:

Calsonic Kansei Leadership Competency
This is a definition of the state of leadershipdemanded by our company.

V-up:

A management improvement technique utilizing
knowledge and power from job sites in terms of“process viewpoints” and “customer viewpoints”.
At Calsonic Kansei, V-up is not merely a tool for
resolving issues, but our goal is for it to be instilled
and entrenched within our company as the
everyday process of working, or “The Way We
Work”.

CKPS: Calsonic Kansei Production System
A basic concept of Monozukuri that is summarized
into the 2 ideas of “unending synchronization withcustomers” and “unending actualization and reformof issues”.
Its goals are as follows:• Enhancing the profitability and competitiveness ofthe company.
• To accomplish this, strict attention must be paid tosynchronization with customers, and the bestproduction system overall must be constructed.

16

4. Policy Initiatives - Corporate Philosophy and CSR Policy
Corporate Vision- A statement specifically expressing the direction to be taken over the long term In the 2012 fiscal year, Calsonic Kansei formed a global team to collect opinions from roughly 6000 employees using
questionnaires and the Internet, and formulated a Corporate Vision and Mission Statements to clarify the direction to be taken
as a company.
The Corporate Vision is a statement that specifically expresses the state our company is striving to reach, and the direction it willtake over the long term. Within this statement, it is made clear that our core businesses are our automotive-related fields andMonozukuri.
Calsonic Kansei’s vision is to contribute to the achievement of a sustainable society through these core businesses.
A global automotive company, inspired to be world-leading in innovation and Monozukuri, while contributing toa sustainable society

Mission Statements- Specific objectives for pursuing our Vision By indicating our company’s action plans and goals to strive for more specifically, the Mission Statements declare that CalsonicKansei will build a brand as a world-leading automotive parts manufacturer. This goal is supported by the enthusiasm of
employees to continually strive to strengthen the values of Calsonic Kansei, and the achievement of technological innovations
that can lead the world by combining creativity and the spirit of Monozukuri. We are also continually aware that we are amember of society, and promise to be a company that will always fulfill our social responsibilities.
Global
We create the strongest world-wide automotive supplier brand by cohesively blending our diverse cultures
into one dynamically agile team.
Inspired
We are persistent to invest in the CK core values generating pride, passion, and loyalty in all of our teammembers.
World Leading Innovation
We harness creativity and a Monozukuri spirit from our team members to be first-to-market with high quality
products and processes for our customers.
Sustainable Society
We are committed to be a socially responsible corporate citizen that brings value to our shareholders,
communities, and team members.

Values - CK WAY (Guidelines for Conduct)
The CK WAY is a set of guidelines for conduct carried out by each employee to achieve the
Corporate Vision. It is an essential source of power for the sustainable growth of the CalsonicKansei Group, and we believe it is vital for it to be practiced by each individual employee.
Individual
1. Challenge
2. Independence
3. Learning
Task
1. Fact-Driven
2. Continuous
3. Commit & Target
Team
1. Cross function / Cross region
2. People Oriented
3. Diversity
4. Transparency

17

4. Policy Initiatives - Corporate Philosophy and CSR Policy
CSR Policy - Responsibilities to Stakeholders and Society
Calsonic Kansei's "CSR Policy" describes its CSR policy and responsibilities with a view torealizing its "Corporate Vision".

Based on this policy, each employee contributes society's sustainable growth by conducting
their daily operations with the awareness to social responsibilities and with well-set business
management based on environmental aspect, society aspect, and economy aspect.
Responsibilities to customers
We aim to be the most trusted company by the customers by responding to the diversified needs & expectationsof the society and providing high-quality products & services that satisfy the customers.
Responsibilities to suppliers
We will collaborate with the suppliers, which provides us components & services, as equal partners and aim torealize mutual improvement and sustainable growth through fair & ethical business operations.
Responsibilities to employees
We respect the diversity and value of each employee and provide the opportunities to develop their talents that
contribute to the company and the society, as well as securing healthy & safe workplace environment. With
these approaches, we will create the company which the each employee can spend a rich life with full dreams,
passion, and pride.
Responsibilities to employees' health & safety
Based on the principle "Securing the employees' health & safety is the first priority", we will be the leading
company in the automotive industry to realize the healthy & safe workplace with all employees' participation in
the improvement activities.
Responsibilities to shareholders and investors
We aim to improve our profitability by continuously developing the competitive products, and at the same time,
we aim to enhance the company's corporate value by conducting fair business trade and with proactive
information disclosure in order to return the generated benefits to our shareholders and investors.
Responsibilities to society
Monozukuri
We will contribute to the automotive society through our products by focusing on the three key technologies;
Environment, Safety and Comfort.
Environment; Technologies for developing environmental-friendly vehicles
Safety; Technologies for creating automotive society without car accidents
Comfort; Technologies for developing vehicles which drivers can drive with comfort

Environment
By each employee always being aware of the importance of nature and putting effort into maintaining
environment with intellectual innovation gained through technology integration, we contribute to create aspiritually rich society.
Participation to social activities and social contributions
We will contribute to the society's sustainable development as good corporate citizens by proactively
participating in the social activities of local society through our business activities.

18

4. Policy Initiatives - “First Year of CSR” Activity Plan
Activities for the 2015 Fiscal Year
With the 2015 fiscal year as the “First Year of CSR” for Calsonic Kansei, in addition to the formulation of the CSR Mid-Term
Activity Plan, we are focusing on activities such as initiatives to investigate CSR in the supply chain, development of a CSRoriented mindset in employees, and coordinated activities with domestic and overseas affiliated companies.

Enhancement and improvement of activities• Formulation of CSR Mid-Term Activity Plan
• Identification of materiality (important CSR issues), and setting and re-evaluation of KPIs
• Understanding of Calsonic Kansei’s strengths and weaknesses, and initiatives for improvement• Initiatives for supply chain CSR due diligence, etc.

Developing a CSR-oriented mindset in employees• CSR awareness training for all employees and affiliated companies• Gaining an understanding of the level to which CSR awareness is instilled (by questionnaires),etc.

Arrangement of systems• Construction of systems coordinated with Group companies• Construction of systems for CSR activities coordinated with various in-house departments• Coordination with overseas affiliated companies, etc.

Forthcoming Activity Plans
We will formulate a CSR Mid-Term Activity Plan, define KPIs, and work toward the achievement of goals over a period
spanning multiple fiscal years.

Enhancement and improvementof activities

FY15

FY16

FY17

Analysis of current
strengths andweaknesses

FY18

FY19

Mid-Term
Activity Plan

Setting of priorities for
initiatives

targetRe-evaluation of KPIs
Formulation of CSR
Mid-Term Activity
Plan
Tentative image of KPI goals for
CSR Mid-Term Activity Plan

40%

70%

100%

19

4. Policy Initiatives - CSR Materiality
Processes to Narrow Down Important Issues

Consideration of activities
for the next fiscal year

Review at the end of the
fiscal year

Implementation of activities
during the fiscal year

Proposal to management

Setting of KPIs

Identification of ourcompany’s activities

Identification of social
issuesIn the 2015 fiscal year, we identified Group, domestic, and global social issues, evaluated their “Impacts on CK”, “Impacts on
stakeholders”, “Frequency of occurrence”, and “Extent of measures to address risk prevention”, and then set the materiality
separated by the core subjects of ISO26000.
KPIs were then set for each materiality, and we are now taking action toward achieving their objectives.

Materiality and KPIs *Refer to the Reference Materials section of our homepage on the Internet for indicator values and past records.
Category

Materiality

KPI
Number of independent outside directors

Strengthening governance
Organizational governanceImprovement of profits

Number of outside auditors
Sales Volume
Value added operating income margin
Rate of disabled person employment

Respecting diversity
Human rights

Rate of female managers
Number of non-Japanese employees

Supporting issues in developing countries

Supply chain due diligenceContributions to social structure improvements Number of conflict minerals survey companies
Rate of female employees
Average length of continuous employment
Work environment

Number of union members
Number of new graduate employees
Number of re-employed employees

Labor practices(Calsonic Kansei independently)

Usage rate of paid leave
Improvement of working styles

Number of employees taking time off from work for child care
Number of employees obtaining child care leave
Number of employees taking time off from work for nursing care

Work health and safety

Frequency rate of accidents requiring time off from work
Number of eco-products created(FY11~FY16)

Response to climate changes

Rate of reduction of CO2 emissions from production
Rate of reduction of CO2 emissions from logistics
Rate of reduction of CO2 emissions from offices

Environment

Rate of emissions reduction
Rate of water consumption reduction
Prevention of environmental disruption

Rate of PRTR reduction
Rate of landfill disposal

Purchase management

Green procurement
Number of serious violations
Number of compliance awards

Fair business practices

Thoroughly ensuring compliance

Consumer issues

Customer issues

Community
Participation and development

Social contribution activities

Number of whistleblowing reports
Rate of information security training participants
Level of customer satisfaction
Total expenses for social contribution activities
Activities to support children who will lead the future20

5. Development of Eco-Products
Calsonic Kansei is:Promoting technological development as declared in its GX4 T10 Mid-Term Management
Plan.



Engaging in measures to contribute to customers and society through technology andproducts.

Committing itself to making further enhancements.

Enhancement of profitability and strengthening of the foundation for our Monozukuri capabilities
From 2009, we have promoted company-wide activities aimed at becoming the No.1 Monozukuri company in the world. While enhancing our
profitability and strengthening our Monozukuri foundation, we have also promoted significant enhancements of our technological development
capabilities in order to achieve growth in the future.


MTCR: Monozukuri TdC Revolution
Expansion of activities to overseas bases, standardization of Monozukuri know-how, human resource development

Expansion of technology development investment for the future
We have increased our resources allocated to technologicaldevelopment (substantial increases in both amounts andpercentages), to strengthen our development ability.


Amount of investments for advanced
technological development

Roughly 5 times the investment amounts for advanced
technological development over fiscal year 2009
Roughly 4 times the percentage of advanced technologicaldevelopment investment amounts in technological development
expenses

Percentage in total technologicaldevelopment expenses

Effective investment management for global technologicaldevelopment
We are promoting a Global Formation Shift (GFS).


Enhancement of global development functions
R&D work transfer from Japan by nurturing the existingdevelopment centers in the U.S., Mexico, Europe, and China
Offshore development center utilization, global information
platform development

Improvements to the additional value of the development
functions in Japan

Significant increases in high-value-added businesses suchas research and advanced development•
The volume of high-added-value businesses isforecast to expand by 1.7 times

2011

Application
development

Promote GFS to prevent the increase of excess development costs byfacilitating the use of LCC engineering resources

LCC

R&AE

R&AE



2017~
GFS

Application
development

LCC
2011

2017~
GFS

HCC

HCC

21

5. Development of Eco-Products
Identification of 4 values and 12 strategic technology areas
Areas for Creating New
ValuesInnovations for Front-end

Innovations for Cabin

Packaging technologies

HMI technologies

Module technologies

Cabin thermal technologies
Air quality technologies
Design quality technologies
Module technologies

Innovations for Thermal Energy
Management

Innovations for Electric Energy
Management

Climate control power saving
technologies

Power supply management technologies

PT high-efficiency technologies

Power control technologies

Environmental Technology
Areas

High-efficiency heat radiation
technologies

Environmental Technology Areas
Innovations for Thermal ManagementAchieved through the application of CalsonicKansei’s technological synergy to control waste
heat energy in all vehicles.

Thermal Management
Energy of
Vehicle

Calsonic Kansei possesses component technology
for power devices (inverters, battery controllers) anddevelops it even further, including applications for
power electronics systems control.

Electric Power Management example
Inverter

Work
Waste
Heat

Innovations for Power Management

Battery status estimation
technology

Exhaust heat recovery
technology

Heat recovery

Warm-up management
Heat transportation andstorage

Thermalconversion

Coupled control technology
with climate control

Exhaust heat recovery
devicesEGR

EDC*

Battery
management system

Oil Warmer
Thermal storage forwarm-up
Thermal regeneration
technology

Adsorption-type air
conditioning...

Water heater

Heat treatment
Coolingtechnologies
Modules, high-efficiency heatexchangers
Integrated cooling (SLIM)

Battery thermal control
module*EDC: Electric Driven Compressor

22

5. Development of Eco-Products
Areas for Creating New
ValuesInnovations for Cabin
Innovations for Front-end

Creation of values for cabins (HMI, thermal
comfort, design, air quality) is achieved together
with innovations in CPM structure andproduction engineering.

Achievement of easy-to-drive cockpit,
comfortable cabin, and attractive design.

Optimal HMI layout, ease of unit mounting, etc.

Creation of values for the front-end (packages)
is achieved together with innovations in heatradiation management solutions.

Achievement of attractive design anddownsizing.

[Longitudinal cross-section image of vehicle
front]

ThermalcomfortHMI

Heat radiation
structure
innovations

Achieved byeffectively utilizing
module structure

Packaging innovations
DesignqualityAir
quality
Achieved by strengthening module structure

Status of GX4 T10 Mid-Term Management Plan fulfillment
 Develop 10 new eco-products that lead the world, within the GX4 T10
period.
Achieve the objectives for FY14.

FY15~16

FY13~14
FY11~12

2

5

3

Post
GX4 T10Target

FY17~20

World’s lightest
compressor in its
class

World’s smallest
EGR cooler

Brush-less motor fan
EGR cooler

12~

Water-based paintInjection skin IP

CR compressor

Soft-feel hard IP

Battery cooling blower motor

Market launch completed

Receipt of orders completed

World’s first
injection-molded
skin

Most efficient and quietest battery
cooling brush-less motor

Currently being sourced23

5. Development of Eco-Products
Example of GX4 T10 environmental
development resultsProduct commercialization of VG-FIN Ⓡ (Vortex Generator fin)
Development of world’s first trapezoid-shaped VG-FINⓇ, that generates “vertical vortices” torealize the best heat exchange efficiency.

Example of GX4 T10 environmental development
resultsProduct commercialization of world’s smallest and lightest EGR cooler


Product commercialization was achieved through the synergy effect of thetechnologies for heat exchanger and exhaust products.
 World’s smallest and lightest (21 - 29% weight reduction from current
products)
 Performance improvements (improvement of 12 - 36% over current products(at the same gas flow resistance)) Introduction of new “VG-FIN ®” technology
 NOx suppression and fuel economy improvement*EGR (Exhaust Gas Recirculation) Cooler:
Heat exchanger that cools exhaust gas when it is returned to the combustion chamber.

Examples of GX4 T10 Environmental Technology
Development AchievementsCommercialization of a lightweight brushless motor series for long-life, low-noise,
and ultra-small blower fansDevelopment and commercialization of new lightweight andsmall brushless motor that can support the requirement
characteristics for electric powertrain vehicles.
 Further life extension by giving consideration to the battery
cooling time when charging or parking
 Ultra-light (45% reduction), ultra-thin (50% reduction), andultra-low-noise (4dB reduction)
 Achieve a brushless motor that is in the top of thebenchmarks for reliability and packaging[Some Achievements From the Significant Strengthening Various awards received from the expansion ofof our Technology Development Capabilities]
technology development investments
1. Development of proprietary battery control technologies
 Control Division Tournament Technology Award from the Society of Instrument and Control Engineers [March
2012]
Internal state estimate for HEV/EV batteries using a Kalman filter
2. SLIM COOL (Single Layer Integrated Cooling Module)● High Quality Paper Award from the Society of Automotive Engineers [May 2013]
Development of single layer integrated cooling system to improve the system efficiency of heat exchangers
3. Instrument panel upholstery molding technology using a an injection molding machine SPE Automotive Innovation Awards[November 2013]
 Technology Development Award from the Society of Automotive Engineers[May 2014]
4. Technical contributions to the American Society of Heating, Refrigerating and Air-Conditioning Engineers George B. Hightower Award from the American Society of Heating, Refrigerating and Air-Conditioning
Engineers
5. Next-generation power electronics project for achieving a low-carbon society IMPAS2014 Best of Session Award[October 2014][Implementation of joint industry and academia research]
FY2014: 34 projects (18 universities, 4 research institutes)
 Contracted with a national project entitled Unused Thermal Energy Innovative Technology Research andDevelopment

24

5. Development of Eco-Products
Prevention of Air Pollution: Purification of Car Exhaust Gas
 Gasoline-fueled automobile exhaust system
With the increasing interest towards environmental issues over recently, exhaust regulations continue to bestrengthened in countries around the world. Due to this the increasingly high performance being required of exhaustsystems, high development technologies are called for.
Calsonic Kansei develops and manufactures optimal products in order to live up to the high level of functions required
as an exhaust system supplier.
Exhaust system example
Exhaust manifold
Main characteristics of Calsonic Kansei’s products
Exhaust manifold:Lightweight, compact, and low heat capacity achieved
using SUS materials (contribute to prompt catalyst activation)
Manifold converter• Manifold converter:
Both unit integrated with the exhaust manifold in one
piece and separate units developed, and the integrated
unit particularly contributes to being lightweight andhaving low heat capacity through the exclusion of theflange for tightening
Catalytic converter• Catalytic converter (under floor)
Vibration absorbing(underfloor)
equipment
Set in an optimal position while securing the required
catalytic capacity.
In particular, significant reduction in manufacturing timeachieved by the elimination of the heat shield for the
Front tube
Center muffler
Rear muffler
spinning converter and a reduction in the number of parts.
• Vibration absorbing equipment
Through exhaust system vibration isolation, contributions are made to improvements in vibration performance andexhaust system durability
Possible to select the optimal vibration absorbing equipment (two types: flexible tube and spherical joint) for the
optimal part depending on the vehicle layout

Noise Prevention: Reduction of Noise Emissions for Exhaust System Parts
 Center muffler, rear muffler
We have conducted sensitivity analysis(parameter studies) on factors that reduce
exhaust noises in exhaust systems. We clarify
muffler capacity, structure, positioning, and theimpact of back pressure and radiation noise toexhaust passage in order to achieve highdimensional noise emission performance andhigh performance (high output).

Exhaust muffler system
exampleCenter muffler

Rear muffler

LCA* Initiatives (Environmental Impact Assessment for Products)*LCA=Life Cycle Assessment
At Calsonic Kansei, we quantitatively assess and evaluate the environmental impact of products in an effort toachieve appropriate support of future environmental issues, including making judgments on the appropriateness of
product plans and development plans and setting priorities on where environmental consideration should be given in
the development design and production process for products.
As part of initiatives up until now, we have calculated the environmental load for internal load by plant per unit byproduct, and developed a database of internal production product LCA data.
In addition, we decide on the scope for car model products and calculate the LCA.
In addition, from FY2006 we established the Product Environmental Indicators Working Group to study how to assess
the environmental performance of products within the development process and how to implement suchassessments. The working group commenced the full-fledge study of how to implement LCA indicators, and in
FY2007 it established a system for the calculation of CO2 emissions that occur at each stage of manufacturing anduse for each product.
25

5. Development of Eco-Products
Improving Development Through Extensive Computer Simulation
 We conduct technology development for various forms of computer simulation (CAE) and we use CAE in variety ofsituations in order to improve development quality and achieve efficient development. In addition to the simulation of
product performance and development, we also develop and use simulations in a variety of manufacturing areas that
include resin flow, casting, and plastic forming. It also makes a significant contribution to the development and promotionof environmentally-friendly products that is one of our key CSR issues.

Compressor vibration analysis

CPM lower limb failure value analysis(collision analysis)

Heat exchanger thermal
stress analysis

Power module solder thermal fatigue
analysisAir-conditioning system cooling
performance analysis

Sirocco fan airflow noise analysis

Instrument panel resin cooling
analysis

Meter electronic substrate EMC
analysis

Vehicle interior demisting
performance analysis

Most Advanced Laboratory Facilities to Ensure High Product Reliability
 In the field of safety, environment, and comfort technology, we have reproduced market environments through state-ofthe-art equipment and experimental technologies in order to ensure a high level of reliability in the three levels of vehicles,
systems, and components from the customer’s perspective. We make sure that the reliability process is performed andthat there are high levels of safety and durability of pursuit of product development that will satisfy customers.

Vehicles
Vehiclecompatibility
designActual vehicle
anechoic chamber

Systemevaluation

Lower limb failure evaluation test
facilities

Parts
Components
designCompressor performance
evaluation

Real car environment windtunnelSystems
Systemcompatibility
designInverter test bench

Vehicleperformance
evaluation

Components
evaluation

Thermal fatigue assessment exhaust
simulator

26

6. Corporate Governance - Basic Principles
and Systems of CK’s Internal Control
Development of Structure for Ensuring the Appropriateness of Operations (Underlined
Sections of Basic Principles and Systems of CK’s Internal Control:2015 Revisions)Calsonic Kansei has traditionally viewed management compliance and appropriateness as some of the most important
issues. The establishment of an efficient and appropriate governance structure is important in order to continue to be trusted
as a reliable company by customers and other stakeholders. For this reason, we have established organizations including
various committees and we have worked towards day-to-day improvements.
Calsonic Kansei’s Board of Directors resolved to establish the Basic Principles and Systems of CK’s Internal Control in
2006, and in accordance with this policy we have constantly monitored social trends and expectations from society while
maintaining this policy and the appropriateness of management itself.
In FY2015, the Group’s internal control system and audit system was partially revised in line with the revision of theCompanies Act and Ordinance for Enforcement of the Companies Act (underlined sections).
1. System to ensure compliance with applicable laws and regulations and compliance with CK’s Articles of
Association by CK’s board members and employees
Calsonic Kansei Corporation (hereinafter referred to as “CK”) shall enact and enforce relevant company rules andregulations such as “Calsonic Kansei Code of Conduct” (Japanese version), “Regulations for Meetings of Board of
Directors”, “Regulations on Management of Safety and Health”, “Regulations for Personal Data Management”, and“Regulations for Management of Insider Trading Prevention” and shall place CK’s board members and employees on noticethat they must be familiar with such company rules and regulations and comply with such rules and regulations, the Articles
of Association of CK and all applicable laws and regulations. The Internal Audit Office, as established, shall perform its
regular internal audit in order to confirm compliance with all applicable laws and regulations and the Articles of Association of
CK.
In the event that any report related to a violation of laws and regulations or the Articles of Association of CK is brought to CK
based upon CK’s internal reporting program, CK shall work through its compliance with applicable laws and regulations andthe Articles of Association of CK with the Global Compliance Risk Management Committee. When operating the internalreporting system, CK shall prohibit any disadvantageous treatment of reporters and define the effect in the Code of Conduct.
CK shall assume a resolute attitude toward antisocial forces. If a board member or an employee of CK receives any
approach by antisocial forces, he or she shall report to the superior and relevant departments immediately and follow theirinstructions. Further, if a board member or an employee of CK, directly or indirectly, encounters any illegal or criminal
activities such as fraud and extortion during business execution, he or she shall assume a resolute attitude toward theactivity, report to the superior and relevant departments immediately, and follow their instructions.
CK shall maintain and strengthen the structure of internal control that ensures the reliability of financial reports, inaccordance with the Financial Instruments and Exchange Act and related regulations and standards.
2. System regarding the retention and management of information relating to business of CK’s board members
Minutes of the meetings of the Board of Directors and/or other official documents authorized by CK’s Rule for Delegations ofAuthorities shall be retained and kept by the responsible departments in accordance with CK’s rules relating to the retentionof documents. Board members and/or statutory auditors can review such minutes and official documents at any time.
3. Rules and systems for company’s proper management of risk and loss
With respect to CK’s company-wide risk management, the Risk Management Committee shall meet on regular basis andshall continuously review each division of CK for compliance with CK’s risk management rules and systems. In addition, a
specific sub-committee will be established, as needed, to address specific risks. Such sub-committees shall make best
efforts to minimize individual risk and loss, including preparing manuals addressing such risks and loss. Further, the chief
officer of each division is responsible for managing and addressing risk and loss, as applicable to his or her own division, in
an appropriate manner.
4. System to ensure efficient execution of business plans established by CK’s board members
Board members and high-ranking officers shall, in accordance with CK’s rules and regulations, including but not limited to
the Regulations for Meetings of Board of Directors, make decisions and authorize actions and establish policies only after in
depth deliberation of each business matter at both the committee level, including the Global Executive Committee involving
officers and employees of CK’s subsidiaries as Committee members which shall meet on a regular basis, and at regular andspecial meetings of the Board of Directors. A corporate-officers system is adopted and “Regulations for Duties ofDepartments” are established by CK to facilitate delegation of authority in order to facilitate swift decisions. Further, CK’s
Rules of Delegation of Authority, which apply globally to all of CK’s subsidiaries, shall require that all business decisions betransparent and CK shall embclear.
ody the management policy and business objectives by developing a medium-term management plan and an annual
business plan, and conduct an efficient and effective business by sharing the plans with CK and CK’s subsidiaries.

27

6. Corporate Governance - Basic Principles
and Systems of CK’s Internal Control
5. System to ensure proper and legitimate business activities of a company group consisting of CK, parent
companies and subsidiary companies (hereinafter referred to as the “Group”)
All of CK’s divisions shall coordinate with each corresponding division of the parent company to establish proper andlegitimate business Group activities. CK as a listed company shall make its own decisions independent from the parent
company even though CK has requirements to report material business matters to or obtain confirmation from the parent
company as a member of the Group.
CK’s policies shall be provided to CK’s subsidiaries and information shall be mutually shared through the Global Executive
Committee and committees to be held on regular basis in each department and, material business matters of each CK’s
subsidiary shall be provided to CK for the purpose of reporting to and/or confirmation from CK based upon clear andtransparent delegation of authority established on a global scale to ensure the proper operation of CK’s subsidiaries.
The supervision scope of Risk Management Committee shall include all CK’s subsidiaries for risk management and the same
setup for risk management shall be applied to all.
Internal Audit Office shall perform regular internal audits on subsidiaries of CK in order to review both (i) compliance withlaws and regulations and CK’s articles of association; and (ii) risk management systems of such subsidiaries.
In order to ensure the appropriateness of the operation, Calsonic Kansei Global Code of Conduct shall be established andapplied to CK’s subsidiaries. Each CK’s subsidiary shall establish its own Code of Conduct to comply with laws andregulations and corporate ethics. Each CK’s subsidiary shall also incorporate introduce an internal reporting system and if
there is any violation of laws and regulations or the articles of association, the subsidiary shall report to CK.
CK’s Global Compliance Risk Management Committee is designed to deliberate not only on CK’s own material matters but
also on those of CK’s subsidiaries reported through the internal reporting system of each subsidiary to ensure CK’s
subsidiaries’ compliance with laws and regulations and with the articles of association.
6. System addressing the independence from board members when a company is asked to place employees
supporting the activities of statutory auditors at the request of the statutory auditors, and matters related to theensuring of effectiveness of instruction for the employees
Corporate Auditors Office is established to support the activities of the statutory auditors and place employees including fulltime managerial positions to support the activities of the statutory auditors. Employees of the Corporate Auditors Office shallperform their duties under the direction of statutory auditors. Consent of Board of Statutory Auditors shall be required prior toinitiating any personnel transfer, personnel appraisal and/or disciplinary action toward such employees.
7. System for reporting issues to CK’s statutory auditors
Board members and/or employees shall, based upon requests of statutory auditors, explain to the statutory auditors thebusiness activities of CK and shall report to the statutory auditors material decisions, policies and business activities of CK
and CK’s subsidiary at all meetings joined by statutory auditors. In addition, board members and/or employees shall reportimportant business activities and business issues to statutory auditors when statutory auditors conduct their regular auditingon each of CK’s divisions in accordance with annual audit schedule. Internal Audit Office shall make regular report to thestatutory auditors at meetings of the Board of Statutory Auditors.
CK shall ensure its statutory auditors attend the meetings of Global Compliance Risk Management Committee which
deliberates on cases violating the laws and regulations or the articles of association in CK and CK’s subsidiaries including
those reported through the internal reporting system of CK and CK’s subsidiaries.
When operating the internal reporting system, CK shall prohibit any disadvantageous treatment of reporters and define theeffect in the Code of Conduct.
8. System to ensure effective and valid auditing by statutory auditors in a company with Auditors
Statutory auditors shall have an opportunity to exchange views with the President/Representative Director of CK on a regularbasis and receive regular reports from the auditing (accounting) firm.
CK shall take appropriate measures to ensure that the costs necessary for statutory auditors to perform their duties are paid
based on the laws and regulations.

[The original text is Japanese.]28

6. Corporate Governance - Basic Principles
and Systems of CK’s Internal Control

Relationship between the Governance Structure and CSR
General Shareholders’ Meeting
Appointment
and dismissal

Appointment
and dismissal

Audit

Board of Directors

Appointment,
dismissal, andsupervision

Reports

Stakeholders

Appointment
Reports and dismissal

Board ofAuditors

Reports

Audit

Accounting
Auditor

Coordination

Internal Auditing
OfficeAudit

Internal Control
Committee

Instructions,suggestions,and reporting

GEC(Global Executive
Committee)

CSR/Public Relations& IR GroupAccounting audit

Reporting andinstructions

CEO

Reports anddialogs

Risk Management
Committee
Reports

Information Security
Committee
Compliance Risk
Management Committee
OthersInstructions andreporting

Each Division/Business Unit and group company*GEC: Meeting for which the CEO serves as the Chairperson29

6. Corporate Governance - Open Information Disclosure
Focusing on Direct Dialogs with Stakeholders
At Calsonic Kansei, we conduct direct dialogs with shareholders and other stakeholders as part of our focus on fair and open
information disclosure.
At the ordinary general meeting of shareholders, we report our business results and the attainment status of our medium-termbusiness plan and provide an opportunity for shareholders to get a direct understanding of our business activities while showing
them our actual products. In addition, results briefing sessions for securities analysts and institutional investors are proactively
held with as an opportunity for the CEO to talk directly concerning the status of business results and the future vision for thecompany, as well as activities that include roundtables and study meetings with the participation of management and tours offactories and research facilities.
IR related news, quarterly financial highlights, financial statements, and annual reports are available from the “Investor relations”
section of Calsonic Kansei’s website.
URL: http://www.calsonickansei.co.jp/english/ir/index.html

IR financial results briefing session30

6. Corporate Governance - Risk Management
Risk Management
Basic Stance
At Calsonic Kansei, we have established a Risk Management Committee composed of GEC (Global Executive
Committee) members with an officer in charge of general affairs and human resources serving as the Chairman
in order to support global business expansion and further diversifying risks. The PDCA cycle for risk
management activities that includes the identification of major risks and the development of response plans isthen implemented by officers from business departments, functional departments, and regions that serves as
the members of this committee.
*GEC: Meeting for which the CEO
Risk Management Committee
serves as the Chairperson
Chairman: Officer in charge ofFramework to
Promote Risk
Management

Product
departments(6 productdepartments)

general affairs and human resources
Members: GEC members
Secretariat

Functional departments(11 global functional
departments)

Regions(5 regions)

Activities of the Risk Management Committee
The Risk Management Committee is held three times a year, at which items that cause risks related to human
life, business continuity, the environment, finance, etc. are identified and a risk assessment map is developed. .
During FY2014, responsible departments, response plans, and achievement schedules were developed for thethree items of disasters, production continuity, and quality as risks for the entire company, and we worked to
implement activities for the avoidance and mitigation of the materialization of risks and the associated damage.
During FY2015, we will re-evaluate the risk map, identify risks for the entire company, and work to further
strengthen our response.
• Risk survey• Risk assessment• Risk selection• Decision on
response• Owner action• Owner report• Owner report• Control levelassessment

Implementation of the PDCA cycle31

6. Corporate Governance - Disaster Prevention
Disaster prevention*This description focuses on the activities of the Group in Japan.

At Calsonic Kansei, we have established the Disaster Management Regulations in preparation for disasters such as earthquakes
and typhoons, and the Company-Wide Disaster Prevention Manual has also been developed as the action guide that employees
should follow based on these regulations.
Central Disaster Response
Division(General Manager＝President)

Basic Disaster Policy
1. Ensure the safety of employees and visitors
2. Prevent the occurrence of secondary damage
3. Business continuity

Central Disaster Response Council(Council composed of businessdepartment managers)
Secretariat

At Calsonic Kansei, we establish structures in preparation for large-scaledisasters and everyday emergencies.
The Central Disaster Response Division has been established within the Group
Division in the event of a disaster that could interfere with production continuity
in the Group.
In preparation for interruption of power transmission to divisions, emergency
generators are installed along with multiple means of communication including
satellite phones.
Up until now the Central Disaster Response Division has come into action on
two occasions, that of the Great East Japan Earthquake and the major floodingin Thailand, and in these cases it managed to secure the safety of employees
and achieve rapid recovery of production.

Restoration support function• Corporate• Development• IT• Quality• Sales• Manufacturing• Procurement • Production technology• Accounting • Human resources/general affairs

Disaster Response Division foreach business location

In particular, in preparation for wide-range large-scale earthquakes we haveinstalled emergency earthquake warning systems in the Group’s domestic
business locations and we have installed emergency power generator in
manufacturing locations where there is the possibility of fire so that fire-fighting
operations can be conducted at any time.
Furthermore, at the R&D Center and Headquarters, the main building has aseismically isolated structure that enables it to serve as a temporary shelter for
people with difficulties in returning home.
A safety confirmation system was introduced from FY2014, and safety training
has been conducted based on annual safety training plans. Such measures will
also be introduced at domestic Group business locations from FY2015.
Basic response flow at the time of large-scale earthquakes
Prevention

Initial action

Production recovery activities

Initial fire extinguishing training

Disaster occurrence

Business activities level

100%

Restoration

Understanding
the situation

Safetyconfirmation

Ensuring safety

Prediction

Prevention

0%Standard lifesaving training

Local fire defense organization activities

Company-wide and district Disaster Response
Division activities32

7. Human Rights
Basic Philosophy and Policies towards Human Rights(1) Basic Philosophy
Calsonic Kansei designates it goal sought and aspired for its people, organizations, culture, and as a corporate citizen in order toachieve its corporate vision and mission as follows.
“HR will develop No. 1 People who will create a No. 1 Company that ensures sustainable growth”
The development of top human resources is essential in order to contribute to society as a top company that support sustainablegrowth.
PeopleMotivated and Innovative People
Organization
Global and Diverse Organization
CultureChallenging and “Care for you” Culture
Corporate citizen
Transparent and ethical behavior(2) Shared Values Based on the CK WAY
The CKLC (CK Leadership Competencies) and CK WAY serve as the basis for all activities by everyone who works at CalsonicKansei as common and core values.
1. CKLCThe ideal leader sought by Calsonic Kansei is a global leader with the skills andpride of a top professional that inspires people they are around with a sense ofbeing people oriented, independently takes on risks and implements reform, and iscapable of achieving success. The ten basic behavior competencies are
summarized as the CKLC (CK Leadership Competencies), based upon which thesame leadership training is conducted around the world in the languages of each
respective country (Japanese, English, Chinese, Thai, Spanish) so that the ideal
leader sought is understood and realized in the field.
2. CK WAY
The ten key items in the illustration below serve as the common behavior guidelines
for all employees at Calsonic Kansei.
So that the everyday activities of all employees working around the world are
based on the CK WAY, these guidelines have been translated into ten languages(Japanese, English, Spanish (Mexico), Portuguese, Romanian, Spanish (Spain),
Russian, Chinese, Thai, Malay) and shared on a global level.

CK WAYCK WAY
Three action areas
and ten action
items

Individual

Task

Challenge

Fact-Driven

IndependenceContinuous

Team
Cross Function /Cross Region
People Oriented

Learning

Commitment &TargetDiversity
Transparency

33

7. Human Rights
Stance towards Respect for Human Rights
At Calsonic Kansei, we conduct human rights education and awareness raising activities in aim for organizational managementthat achieves qualities such as respect for diversity and equal opportunities.
The Calsonic Kansei Code of Conduct clearly states
1. We will accept and respect the diversity of employees, business partners, customers, and the local community (race,
nationality, gender, religion, physical disability, age, place of birth). In addition, we will work to effectively utilize the mutual
diversity of officers and employees in all means possible in an effort to maximize the strength of the organization.
2. We will not discriminate against or harass other officers and employees or allow discrimination or harassment to occur due torace, nationality, gender, religion, physical disability, age, place of birth, or any other reasons.

Human Resource Development
Calsonic Kansei’s growth is supported by human resources, and the focal points of human resource development for CalsonicKansei as a global automotive-related company are monozukuri human resource and global human resources.
(1) Monozukuri Human Resources Development
In order to further improve monozukuri capabilities strengthened through global competition and roll these capabilities
out on a global level, we conduct training for the acquisition of knowledge and skills in a planned manner, including
CKPS (Calsonic Kansei Production System) training that is the foundation for monozukuri at Calsonic Kansei andvarious specialized technology training programs. In addition, planned career path programs are conducted to develop
monozukuri capabilities to the level required in the field through a broad range of operational experience.
(2) Global Human Resources Development
For the purpose of developing the next generation of global business leaders,
we conduct group English training for leader candidates from each country
Including Japan and GBLT (Global Business Leader Training) with a focus on
active learning every year.
(3) Career Development Support
Career interviews are held with superiors for the purpose of supporting the
career development of each and every employee. Interviews are held withsuperiors at least two times per year so that sufficient discussions can be heldon the career development of employees along with performance assessments
and competency assessments, and actual career development is then implemented based on these interviews.
(4) Introduction of a Skills Meister System
Under this system the Meister Certification Committee has been established to clarify the skills required for
manufacturing and to certify and conduct renewals for meisters. The first Meister Certification Committee was held inMarch 2015, during which six meisters were certified. The employees that were certified on this occasion wereselected for not only have the skills of a “master artisan”, but also for being recognized as model employees by
everyone they work with.

Fair Personnel Evaluation System
At Calsonic Kansei, we focus on developing workplace environments that enable each and every employee to maximize theirabilities and continue learning in order to further improve their capabilities so that we can achieve growth as an organization.
To serve as the foundation for this, a fair personnel evaluation system and compensation system are indispensable. We haveintroduced an evaluation-based compensation system to correctly determine the degree of contribution being made as aframework for allowing employees to feel motivated and achieve high results.
Specifically, compensation is decided based on a competency evaluation that assesses the behaviors, skills, and knowledge
required to achieve results that have been revealed and a performance evaluation that assess the results that have actually
been achieved.
By keeping the information concerning the evaluation system and compensation system open, improving transparency through ahandbook that provides a better understanding of the system, and providing ample opportunities for mutual communication
between superiors and subordinates, we aim to improve the fairness of the system and the level of satisfaction towards thesystem.

34

8. Labor Practices
Respecting Diversity(1) Diversity Promotion Activity: shine.net
The production of new innovations through healthy conflicts
among employees with diverse values leads to the growth of thecompany and individuals.
At Calsonic Kansei, we view the promotion of diversity as one of
the most important management strategies for the entire Group,
and in addition to the distribution of a message from top
management at that annual diversity meeting and the invitation of
external experts to hold lectures on diversity, diversity promotion
activities are conducted at each workplace under the Diversity
Promotion Team (shine.net) that is composed of employees
from each department, plant, and Group company.
(2) Active Participation of Women
We aim to achieve workplaces and ways of working that will
make it possible to maximize the abilities of women that have life
stages such as childbirth and child rearing, and accordingly we conduct employee opinion surveys and gather VOC
through the Working Style Improvement Committee and Diversity Promotion Team while conducting the results of suchactivities into various measures. The number of women active as global leaders is increasing year by year, and thewomen in management rate for the Group on a global level was 9.5% in FY2014.
(3) Active Participation of Foreign Employees
As part of efforts to promote diversity, we are expanding the recruitment of foreign employees. In addition to recruiting
international students, we also directly hire students graduating from universities overseas.
In addition to 200 expatriates sent from Japan to overseas and 30 expatriates sent from overseas to Japan, the numberof cross-regional transfers is increasing every year as workplaces for the active participation of foreign employees is
growing on a global level.

Supporting Diverse Working Styles
We have developed system to support changes in the social structure and the lifestyle of employees that are becoming more
and more diverse every year. Measures have been implemented based on the Act on Advancement of Measures to Support
Raising Next-Generation Children, and the system put in place goes above and beyond the levels stipulated by law. In
addition, we support telecommuting and satellite work through our Work-Style Innovation Project.
Initiatives during FY2014 were aimed at improvements to create a more comfortable working environment through means suchas the extension of the use period for the shortened workday system for nursing care until the grounds for leave no longer apply
and a revision of the child nursing care leave system and nursing care leave system
Kurumin MarkOur results for FY2013 to FY2014 were certified as conforming with the standards based on Article 13 of the
Act on Advancement of Measures to Support Raising Next-Generation Children. (Kurumin Mark)

Communication with Employees(1) Employee Satisfaction Survey
A CK WAY survey is conducted on a global level every year to study the sharing of values and actual behavior in theworkplace in pursuit of the CK WAY, and action plans aimed at further improvements are implemented in response.
(2) Employee Award System
In order to foster a culture that respects people taking on challenges and values affinity for other people, we value
recognition and praise on the spot as appropriate in response to the achievements of teams and individuals. Forms ofawards include the CEO Award that is given once per year, the General Manager Award that is presented by officers every
quarters, and thanks cards that are handwritten by management level staff and handed over as appropriate.
(3) Labor-Management Relations
At Calsonic Kansei, based on the stance that healthy labor-management relations serve as the foundation for corporate
growth, we have built stable labor-management relations with the Calsonic Kansei Labor Union and we regularly conduct
negotiations and discussion with employees regarding matters such as labor conditions.
In addition, for Group-wide issues that involve the Calsonic Kansei Group Union Confederation (CKGU), we conduct
discussions with affiliated companies through round-table meetings between labor and management.
At each overseas Group company, discussions are held between the labor unions and employee representatives from eachcompany based on the laws and regulations of each country.
35

8. Labor Practices - Occupational Health and Safety of Employees
Occupational Health and Safety*This description focuses on the activities of the Group in Japan.

FY2014 results
The results were no serious accidents or fatalities during
FY2014, and the number of accidents that required time offfrom work was on the same level as the previous fiscal year
(one incident).

Frequency rate = number of accidents per 1million hours oflabor＝ (number of accidents) ÷ (total working hours) ×(1,000,000 hours)

0.15

0.11

0.1
0.05

0.06

0.05
0
FY12

FY13

FY14

*The figures in the report for the previous fiscal year
were for Calsonic Kansei on a non-consolidated basis,
while the figures for this report are for the entire Group.

Global Basic Policy of Health and Safety

Based on the basic principle “the Health and Safety of employees takes precedence over all“, we are committed to create thesafest and most appropriate workplace in the auto-parts industry through the participation of all employees

Health and Safety Activities Structure(Domestic Group)

Union director for affiliated companies

Affiliated companies Supervising healthand safety management administrator

Risk Assessment

Industrial physician

Secretariat

Union director for each business location

Message from the Central Health and Safety
Committee for FY2015“Aim for workplaces with zero accidents!
Protect your fellow workers! Protect yourfamilies!”

Central Health and Safety Committee
Chairman/Vice Chairman

Each business location Supervising healthand safety management administrator

At Calsonic Kansei, each Group company in Japanworks together to establish annual targets for thevarious indicators related to health and safety, andworks towards ensuring the safety of workplaces
and safe and healthy by employees under thesupervision of the supervising health and safety
management administrator for each businesslocation.
At the Central Health and Safety Committee that isheld every year, we look back on the results for theyear and confirm the main activities and targets forthe entire Group for the new fiscal year.

We set forth challenges every year and try to improve our level of performance. During FY2012, we carried out
education on Risk Assessment, and one risk assessment issue was submitted per business location unit. During
FY2013, one risk assessment was conducted per team unit, and in FY2014 at least one risk assessment was conductedby chief in an aim to reach an even higher level.
In terms of the contents, during FY2013 risk assessment were conducted on processes and equipment that wereinvolved with an accident over the past five years andprocesses and equipment that were involved with a short-period stop at plants with no accidents, and preparation tasks.
In light of the adoption of legislation for the risk assessment of chemical substances, during FY2015 at least one risk
assessment was conducted on chemical substances per business location.

36

8. Labor Practices - Occupational Health and Safety of Employees
SES(Safety Evaluation System)
At Calsonic Kansei, the entire Group has introduced aframework called SES for assessing the safety ofprocesses and facilities and making countermeasuresobligatory depending on the situation.
Evaluators that have qualifications based on a certification
system conduct an inspection based on a check table thatis used for every business location at domestic Group
companies. The level of improvement is also confirmed inthese checks.
Evaluation results are generated for each businesslocation. We aim to improve safety levels for the entire
company by clarifying differences in safety levels between
businesses through an evaluation that is conducted using
the same pair of eyes.
Checks are also conducted based on an SES checksheet
when supervisors make their rounds at plants in an effort tomaintain and improve safety.

F-PES (Fire-Prevention Evaluation System)
F-PES has been introduced for the purpose of fire prevention. As F-PES is kind of like a version of SES for fire prevention, acheck table is used in the same manner as SES in order to map features such as dangerous facilities, electrostatic booths,
and painting booths within plants in an effort to prevent fires and comply with laws and regulations.
While F-PES was conducted through the development of F-PES evaluators by each business location unit until FY2014,
from FY2015 company-wide audits were conducted by internally-certified employees.

No-Smoking Activities
No-smoking activities were launched from FY2013 together with the health insurance society, and as a result the smoking
rate fell from 39.1% in FY2013 to 37.5% in FY2014. Main activities
 Distribution of message supporting employees that want to quit smoking
 Presentation of awards to employees that have successfully quit smoking
 Establishment of the Calsonic Kansei No-Smoking Day (once a year) Holding of no-smoking lectures, etc.
We will continue the activities above during FY2015, and hold the Calsonic Kansei No-Smoking Day twice a year.

Mental Health
At Calsonic Kansei, an external expert has conducted stress checks on employees every year since FY2008. The participation
rate was 96% in FY2014, and employees with high levels of stress received advice from a specialist doctor.
Although the diagnosis results are not submitted to the company in consideration of personal information protection, managers
are able to confirm the level of stress by the workplace unit, and viewing data on one’s own plant that has been analyzed fromvarious perspectives leads to improvements.
For departments with particularly high levels of stress, external counseling experts are invited to listen to opinions from both
subordinates and managers in order to clarify the gaps and also devise improvement plans.
While mental health care seminars were conducted for all newly appointed management personnel in the past, as a result ofanalysis of the levels of stress by position, gender, and age in addition to apartment, it was determined that stress was highamong young employees and mid-career employees, and for this reason mental health care seminars were established forgeneral employees advancing to a higher position from FY2013. The intranet is also used to present websites that introduce
medical institutions and counselors in an effort to encourage care at an early stage.
We have developed a reinstatement program for employees that become ill as result of mental health issues as part of a system
in place that aims to enable reinstatement to the workplace by having employees follow the program.

Stress check
Response provided over the Internet
to employees with an email address
and by a letter to employees without
an email address

Feedback on the
diagnosis results to
the respondent

Consultations with EAP workers(Internet, letters, telephone, interviews, etc.)
Introduction of medical institutions
Follow-up by doctors (follow-up letter)Stress level report to the department

37

9. Environment - Green Concept and Environmental Management
Green Concept
As a corporate group specializing in the production of automotive components, the Calsonic Kansei Group vigorously
promotes group-wide environmental protection activities.

Environmental Policy
The Calsonic Kansei Group Environmental Policy establishes a set of basic principles, in accordance with which all Group companies
will promote environmental protection, a common challenge for all humankind.
To be trusted by all our stakeholders including customers and society at large, and to contribute to building a sustainable society, we
strive to ensure that all Group companies throughout the world share the Policy and act in an environmentally responsible manner inaccordance with it.

Environmental Philosophy
With the aim of creating a pleasant natural environment and contributing to enriching society, Calsonic Kansei strives to protect the
global environment by promoting intellectual innovation through technology integration, while at the same time encouraging its
employees to always be aware of the basic principle of harmonious coexistence with nature.

Basic Environmental Policy
To contribute to building a more prosperous society, we strive to protect the environment at every stage of our business activities.

Environmental Policy
1. Establish an organization that promotes environmental protection activities.
2. Continuously improve and upgrade the environmental management system.
3. Comply with all applicable environmental laws and regulations.
4. Conduct environmental audits.
5. Promote resource-and energy-savings, waste reduction, recycling andstreamlined logistics.

6. Reduce and eliminate the use of hazardous chemical substances.
7. Develop environmentally friendly products.
8. Conserve water, air, soil and biodiversity.
9. Implement environmental activities at our operations in Japan andoverseas using the same standards in place at our domestic plants.
10. Actively disclose environmental information.

Environmental Management
1. Calsonic Kansei Group Environmental Management
Promotion System

To further promote global environmental
management, we have been holding the
Global Environment Management
Meeting.
Under the Global Environment
Management Meeting,each of the committees develops anenvironmental activity plan, which is thenpresented to the Global Environment
Management Meeting for discussion,decision-making, and follow-up on thepriority themes. We have a system inplace for reviewing the progress ofactivities to ensure the effective
implementation of the action plan, fromtarget setting to implementation.

North
America

EuropeAsia

Based on the Global Action Plan, each headquarters
develops and implements an environmental policy, goals
and targets, and an environmental management
program.

Global Environment
Management Meeting
Chairperson: Global Production Division
General Manager
Vice Chairperson: Global Technology
Division General Manager
Secretariat: Environmental Energy Control
Group

Japan

Product
Environmental
Committee

Promotes environmental conservation in product development,
including development of environmentally friendly products andreview of environmental performance indicators for products.

Production
Engineering
Environmental
Committee

Promotes the reduction of environmental burdens of production
technologies; promotes compliance with environmental laws andregulations; promotes energy and resource conservation measures;develops methods to reduce the use of hazardous chemical
substances; and shares environmentally friendly technologies.

Environmental
EnergyCommittee

Promotes reduction of environmental burdens caused bymanufacturing operations; promotes compliance with environmental
laws and regulations; promotes prevention of global warming andeffective use of resources; promotes the reduction and elimination of
the use of hazardous chemical substances; ISO 14001 progress
management; conducts corporate environmental audits, etc.

Environmental
Communication
Committee

Promotes internal and external communication activities, including
planning and implementation of social contribution activities.
⇒ Public relations activities for external audiences, through our
website and environmental newsletters.
⇒ Awareness-raising and information-dissemination activities for
employees through the intranet and in-house magazines.

38

9. Environment - Environmental Management
2. Calsonic Kansei Green Program 2016
As our medium-term plan for environmental conservation for fiscal years 2011 to 2016, we will vigorously implement the plan toachieve the following targets.
TargetItem
Category

Target achievementtimingJapan

FY14 results

FY15 target

FY16 target

Upper row Single year 2% reduction vs FY2013
Lower row Mid-term
14.2% reduction vs FY2005

3.5% increase vs FY2013
28.3% reduction vs FY2005

2.5% reduction vs FY2014
16.4% reduction vs FY2005

18.5% reduction vs FY2005

North America,
Europe, and Asia

Upper row Single year 2% reduction vs FY2013
Lower row Mid-term
9.1% reduction vs FY2005

5% reduction vs FY2013
20.6% reduction vs FY2005

2.5%reduction vs FY2014
11.4% reduction vs FY2005

13.6% reduction vs FY2005

CO2 from logistics

Japan

Upper row Single year 1% reduction vs FY2013
Lower row Mid-term
20% reduction vs FY2010

16.6% reduction vs FY2013
35.9% reduction vs FY2010

1% reduction vs FY2014
21% reduction vs FY2010

22% reduction vs FY2010

CO2 from offices

Japan

Upper row Single year 1% reduction vs FY2013
Lower row Mid-term
4% reduction vs FY2010

3.1% reduction vs FY2013
6.5% reduction vs FY2010

1%reduction vs FY2014
5% reduction vs FY2010

6% reduction vs FY2010

Waste

Japan

Upper row Single year 2% reduction vs FY2013
Lower row Mid-term
14.7% reduction vs FY2005

5.6% increase vs FY2013
26.5% reduction vs FY2005

2% reduction vs FY2014
16.4%reduction vs FY2015

18.1% reduction vs FY2005

North America,
Europe, and Asia

Upper row Single year 1% reduction vs FY2013
Lower row Mid-term
4%reduction vs FY2010

5.8% reduction vs FY2013
11.7% reduction vs FY2010

1% reduction vs FY2014
5% reduction vs FY2010

6% reduction vs FY2010

Japan

Upper row Single year 1% reduction vs FY2013
Lower row Mid-term
19.2% reduction vs FY2005

12.9% increase vs FY2013
4.6% reduction vs FY2009

2%reduction vs FY2014
20.8% reduction vs FY2009

22.4% reduction vs FY2009－

2% reduction vs FY2014
2%reduction vs FY2014

4% reduction vs FY2014

Reduction of CO2 emissions(Reduction of energy usage)●ProductionCO2
Reductions in emissions per unit
(Emissions/sales)● Office CO2
Reduction per unit
(Emissions/floor space)

RegionFY14 target

Production CO2

Resource recycling● Reductions in emissions per
unit(Emissions/sales)(Waste + valuable
resources)

Conservation of water, air, soil
and biodiversity●Usage per unit
(Usage/sales)

Water consumption
North America,
Europe, and Asia

Upper row Single year
Lower row Mid-term－

Upper row Single year 1% reduction vs FY2013
Lower row Mid-term
4% reduction vs FY2010

PRTR

Japan

Landfill waste

North America,
Europe, and Asia

7.7% increase vs FY2013
1.3% reduction vs FY2010

Target being re-established as VOC substance reductions

Zero Landfill(Reduce landfill waste to zero)● Landfill rate
(Landfill waste/waste amount)

Mid-term

3%

2.9%

0.2%

Maintain 0.2%

3. Establishing an ISO 14001 Environmental Management System■ Promoting the Acquisition of ISO 14001 Certification
Since 1998 the Calsonic Kansei Group has been promoting the acquisition of ISO 14001, an international standard for environmental
management systems. All Calsonic Kansei plants, the Testing Research Center, the Research and Development Center of theheadquarters, and domestic affiliated companies have been certified. Except for those newly established, all overseas affiliatedcompanies have been certified, with the Group promoting high standards of environmental management on a global scale.
Major overseas affiliates Certification Status

Japanese Plants and Offices Certification Status
Plants and Offices name

Initialregist. date

Gunma Plant

Oct. 1998

Kodama Plant

Jan. 1999

Dom. Oppama Plant

Feb. 1999

Yoshimi Plant

Dec. 2001

Testing Research Center

Jan. 2003

R&D Center, Headquarters

Jan. 2013

Initialregist. dateCalsonic Kansei North America, Inc. Shelbyville Plant

Sep. 2001

North Calsonic Kansei North America, Lewisburg Plant
America
Calsonic Kansei Mexicana, S. de R. L. de C.V., Aguascalientes Plant
Calsonic Kansei Mexicana, S. de R. L. de C.V., San Francisco Plant
Calsonic Kansei Sunderland Limited

Sep. 2002
Mar. 2005
Mar. 2005
Sep. 1999

Companies name

Initialregist. dateCalsonic Kansei Iwate Corporation

Jun. 1998

Calsonic Kansei Korea Corporation

Oct. 1999
Jan. 2002
Feb. 2000
Nov. 2008
Apr. 2004
Oct. 2004

CKK Corporation

Mar. 1999

Calsonic Kansei (Malaysia) Sdn.Bhd

Aug. 2007

Calsonic Kansei Utsunomiya Corporation

May 1999

Calsonic Kansei (Wuxi) CorporationCKF Corporation

Dec. 1999

Calsonic Kansei (Wuxi) Components Corporation

Tokyo Radiator Mfg. Co., Ltd.

Mar. 2003

Calsonic Kansei (Guangzhou) Components CorporationCKP Corporation

Mar. 2004

Calsonic Kansei (Thailand) Co., Ltd.

Calsonic Kansei Yamagata Corporation

Nov. 2012

Aug. 2007
Nov. 2008
Jan. 2009
Aug. 2011
Jan. 2014
In planning
In planning

Calsonic Kansei UK Limited, Washington Plant
Europe Calsonic Kansei UK Limited, Llanelli Plant
Calsonic Kansei Spain, S.A.

Major domestic affiliates Certification Status

Dom.

Companies name

Calsonic Kansei Romania S.R.L.
Daihan Calsonic Corporation

Asia

Calsonic Kansei Components (Xiang Yang) Corporation
Calsonic Kansei (Haimen) Corporation
Calsonic Kansei Motherson Auto Products Limited■ Promoting the Acquisition of ISO 14001 Certification
In an aim to improve the level of the environmental management system, we will expand the number of internal audit personnel at eachbusiness location while conducting internal audits led by the Headquarter’s Environment & Energy Control Group and external audits byinspection agencies on a regular basis.

39

9． Environment - Environmental Management
mark: Calsonic Kansei + domestic and overseas affiliated
4. Business Activities and Environmental Burden ⇒ Mass Balance No
companies●: Calsonic Kansei + domestic affiliated companies

Input

Raw materials

EnergyWater

Chemical substances

Total raw materials

Total energy

Total water

Total chemical substances● 250 t218,340 t

5,082,393 GJ

1,379 km3

● 65,419 t● 1,913,502 GJ● 748 km3

Steel materials

Electricity

Water supply

56,577 t

443,596 Mwh

618 km3● 16,546 t● 163,344Mwh● 280 km3

Nonferrous metal materials

Special heavy oil A

Industrial water

89,931 t

1,024 KL284 km3● 32,219 t● 1,024 KL● 9 km3

Resin materials

Light oil

Kerosene

70,297 t

97 KL

145 KL477 km3● 16,251 t● 76 KL● 144 KL● 459 km3

OthersTown gas

1,535 t9,406 km3

● 402 t● 2,261 km3
LPG

Underground water

Gasoline

3,616 t170 KL

● 2,616 t● 106 KL

Calsonic Kansei Affiliated GroupPress

Welding

Resin molding

Painting

Machining

Assembly

OutputRecycled

Greenhouse gas

Air pollution sources

Water contamination
sources

Chemical substances

SO x

Waste water

Toluene/xylene● 76 tCO2

Reusable materials

CO235,706 t

203,354 t CO2

0.912 t1,012 km3

● 12,371 t● 78,356 t CO2● 0.912 t● 611 km3

Waste

Other than CO2

NO x

BOD

Others

148 t

0t● 3.377 t● 8.378 t● 39 t● 30 t● 0tSoot dust● 0.228 t
40

9. Environment - Environmental Management
5. Environmental Action Plan (FY2014 Targets and Results)
To strengthen group-wide environmental efforts, the Calsonic Kansei Group holds the Global Environment Management Meeting andEnvironmental Energy Committee Meeting twice a year to exchange information on the implementation status of the Action Plan andachievements.
Priority issue

Mid-term Action Plan
Promote acquisition and maintenance of ISO 14001 certification for all Group plants and companies in Japan and overseas.

Strengthen group-wide global environmental management promotion system.
Purification and prevention of contamination of soil and groundwater
Enhancement of environmental
risk management

Strict control of wastewater quality

Environmental management
promotion

Community partnership activities

Disseminate information on environmental activities undertaken by a production department to earn local
communities’ trust. Maintain fulfillment rate at 100%.

Green partnership activities

Promote three Environmental Clean Chain Activities (CO2 emissions reduction, effective use of resources, andreduction of substances causing environmental burdens) and prevent occurrence of environmental incidents at a
production department. Maintain fulfillment rate at 100%.
•

CO2 emissions reduction(Reduction of energy usage)

Reduce CO2 emissions per unit (total emissions/sales) by the percentages listed below, by FY2016, vs FY2005
Japan: 18.5% reduction
North America, Europe & Asia: 13.6% reduction•

Reduction of waste emissions (waste and valuable resources) (CKGP2016)
Reduce waste emissions per unit (total amount of waste emitted/sales) by the percentages listed below, by
FY2016
Japan: 18.1% reduction vs FY2005
North America, Europe & Asia: 6% reduction vs FY2010

Resource recycling•

Reduction of environmental
burdens of manufacturing
activities

Reduction of carbon dioxide (CO2) emissions (CKGP2016)

Zero Landfill: Achievement of zero landfilled waste (CKGP2016)
Have the landfill ratio of waste (landfilled amount/waste amount) for overseas be 0.2% by FY2015•

Reduction of use of environmentally hazardous substances (CKGP2016)
Japan: Reduce environmentally hazardous substance use per unit (total amount of PRTR substances used/sales)
by 4% by FY2014 vs FY2010

Conservation of water, air, soil &biodiversity•

Target re-established as reductions in VOC substances from FY2015•

Reduction of water use (CKGP2016)
Reduce water use per unit (total amount of water used/sales) by the percentages listed below, by FY2016
Japan: 22.4% reduction vs FY2009
North America, Europe & Asia: 4% reduction vs FY2014
Compliance with laws and regulations, as well as customer requirements, and reduction and elimination of use ofregulated chemical substances(Compliance with European ELV Directive)(Compliance with European REACH regulations)(Compliance with Tennessee’s air pollution regulations in North America)

Reduction of waste (development of easily recyclable products)

Development ofenvironment-conscious
products

Enhancement of efforts to develop
products that addressenvironmental issues
Prevention of global warming (fuel efficiency/energy efficiency)

Prevention of air pollution (purification of exhaust gas)
Noise prevention (reduction of noise emissions)
Evaluation of environmentally friendly products
Introducing environment-conscious products into market (CK GX 4T10)
Green procurement
Environmental
communication

Expansion of green procurement
Active disclosure of information on environmental activities419. Environment - Environmental Management

FY2014 plan
Improve quality of ISO 14001 activities.

Enhance CK Group Environmental Management Promotion System.

Continue and expand soil and groundwater conservation efforts.
Manage wastewater quality and exhaust gas emitted from our plants, by setting
voluntary targets at 80% of regulation values.

FY2014 results
Conducted CK environmental performance audits for all domestic sites that have acquired ISO 14001.
Improved emergency contact network in case of environmental incidents within Calsonic Kansei Group(horizontal deployment rate: 100%).
Thoroughly implemented countermeasures at plants with contamination in the past and preventive
measures.
Achieved our voluntary target values.
Achieved community partnership fulfillment rate of 100%.

Fulfillment rate of community partnership activities (actual assessment
points/standard assessment points): 100%

Conducted environmental risk communication by community members, company and government.
Conducted cleaning of areas around business sites.
Accepted visitors for plant tours and internship of students from local elementary, junior and senior highschools.
Achieved green partnership fulfillment rate of 100%.

Fulfillment rate of green partnership activities(actual assessment points/standard assessment points): 100%

Conducted emergency response training for cooperating companies.
Implemented training sessions on prevention of environmental incidents.

Reduce CO2 emissions per unit by 2% from FY 2013 level.
(14.2% reduction vs FY 2005)
North America, Europe & Asia: 2% reduction vs FY2013

Japan: 3.5% increase vs FY2013 (28.3% reduction vs FY2005)
North America, Europe & Asia: 5.0% reduction vs FY2013 (20.6% reduction vs FY2005)(9.1% reduction vs FY 2005)
Reduction of waste emissions per unit
Japan: 2% reduction vs FY2013(14.7% reduction vs FY 2005)
North America, Europe & Asia: 1% reduction vs FY2013

Japan: 5.6% increase vs FY2013 (26.5% reduction vs FY2005)
North America, Europe & Asia: 5.8% reduction vs FY2013 (11.7% reduction vs. FY 2010)(4.0% reduction vs FY2010)
Overseas landfill ratio of 3% or lessOverseas landfill ratio of 2.9%

Japan: 1% reduction of environmentally hazardous substance use per unit vsFY2013(4% reduction vs FY 2010)

Japan: 7.7% increase vs FY2013 (1.3% reduction vs FY2010)

Japan: 1% reduction of water use per unit vs FY2013(19.2% reduction vs FY 2009)

Japan: 12.9% increase vs FY2013 (4.6% reduction vs FY 2009)

Reduce VOCs in vehicle cabin interiors.

Continued efforts to reduce VOCs in vehicle cabin interiors.

Promote the use of lead-free solder.

Used lead-free solder for some models.

Ensure compliance with European REACH Regulations.

Implemented activities to comply with European REACH Regulations.

North American organic solvents use regulations

Water soluble materials adopted for instrument panel pad skin primer and paint, adoption being expanded

Disclose materials data to customers promptly.

Responded effectively to customer instructions (via IMDS).

Promote the development of easily recyclable products.

Being adopted for cockpit front-end modules, seamless hard instrument panels, and paintless instrument

Promote light-weight, fuel efficient/energy efficient products.

Being adopted for cockpit front-end modules, high performance air-conditioning systems, steering
members, circuit board harnesses, variable capacity compressors for air-conditioners, small andlightweight rotary compressors for air-conditioners, heat pump air-conditioning systems, hot water heaters,
meters, built-in oil coolers, EV inverters, EV battery controllers, lightweight radiators, charge air coolers,
brashless motors, and EGR coolers.

Promote development of products that ensure effective purification of exhaust gas.

Being adopted for exhaust manifolds, manifold converters, and catalytic converters (underfloor).

Promote development of products with low noise emissions

Being adopted for low noise exhaust systems

Promote the development of environmentally friendly products.
Promote the creation of a database for relevant indicators.

Disseminated information on indicators for environmentally friendly products to employees, and promoted
the development of a system for calculating CO2 emissions in the production stage.

Introduce 5 products into the marketplace in the 2 years of FY2013 and FY2014

Introduced 2 products into the marketplace in FY2014

Enhance Green Procurement Guidelines.
Enhance information dissemination activities for external audiences.

Promoted activities to encourage business partners to agree to and follow our Green Purchase
Guidelines.
Improved the “Environmental Information” section on our website.
Communicated our environmental activities and results to our shareholders through Medium-Term
Reports.

42

9. Environment - Environmental Accounting
Environmental Accounting
The Calsonic Kansei Group has introduced environmental accounting as a tool for quantitative evaluation of environmental activities
and official announcements.
Environmental accounting is a means of publicizing and quantitatively summing up the economic advantages accompanying
environmental conservation measures, as well as the benefits and costs of environmental conservation and related activities, andwhat we publicize in the Sustainability Report fulfills our commitment to explain our business activities to our various stakeholders.

Establishing a quantitative evaluation summary is helpful for enhancing our sustainablebusiness management practices.

1. Goals of Environmental Accounting for the Calsonic Kansei Group1

2

By actively disclosing quantitative
measurement results to local citizens,stockholders, and society in general, we
aim to boost the transparency of theenvironmental activities of our company
and help all parties gain an understandingof our corporate stance on theenvironment.

We use the quantification of both costs
and amounts that arise from corporate
involvement in environmental activities asa means of making further decisions
pertaining to the effective promotion of
future environmental activities.

3
In order to improve the consciousness of
our employees, we established a systemthat raises environmental awareness,
focuses on this awareness, and develops
it further through everyday workplaceinteraction.

2. Status of FY2014■ Environment Conservation Costs
Environmental conservation costs are the investment and expenditures related to our environmental activities measured in monetary units.
(Unit: million yen)

Investments

Expenditures

Classification2013

1.Costs within each business area for reduction of the environmental burden
Pollution prevention costs

Changes

2013

2014

Changes

115

163

48

301

502

201

47

50

3

199*

189

(10)

Environmental conservation Energy savings, resource savings, costs of phasing out materials withhigh environmental burdens
costs

65

112

47 *1

61

59

(2)

Resource recycling costs

Costs for reduction of industrial waste, recycling, and disposal

4

1

(3)

240

254

14

Costs for controlling environmental burdens occurring
upstream/downstream of our business areas.

0

0

0

13

20

7

Human resource costs incurred for environmental policy organizations,and the establishment, operation and certification of environmental
management structures.

0

11

11

130

161

31

Costs for development of environmentally friendly products, and researchand development related to reducing environmental burdens.

359

449

90 *2

4,147

4,212

65

Costs for supporting environmental conservation activities conducted by
local citizens and groups.

0

0

0

6

8

2

Costs for restoration of the natural environment and compensation forenvironmental damage.

0

0

0

3

3

0

474

623

149

4,599

4,906

307

2. Upstream/downstreamcosts
3. Management activity
costs
4. Environmental researchand development costs
5. Social activities costs
6. Environmental damage
treatment costs

Prevention of air, water, soil and noise pollution.

2014

Total

*The ( ) indicates a decrease from the previous fiscal year.
*1. Investments have decreased for global warming prevention activities and the adoption of energy saving
measures.

*The costs include pollution prevention costs of 264 million yen for 2013.

*2. Environmental-related investments for advanced development have increased.

The amount displayed has been corrected to 199 million
yen.

43

9. Environment - Environmental Accounting■ Environmental Conservation Effects
Environmental conservation effects are assessed both from the quantitative effect, which is evaluated based on the reduction in substances causing
environmental burdens, and the economic aspect, which is evaluated based on the amount of money. The amount of costs saved by environmental
activities (the real effects, etc. of energy-savings activities) and revenues (income from selling valuable resources etc.) from environmentally friendly
activities are recorded as the economic effect.
Classification

2013

2014

Effect1. Environmental conservation effects related to resources used in business operations (quantity)

Quantitative effects

Total energy use after conversion to CO2 (t)Water consumption (km3)

208,387

203,354(5,033)

1,337

1,379

42

2. Environmental conservation effects related to waste discharged in business operations (quantity)
Total amount of waste (t)36,38835,854(534)

Amount recycled (t)35,58635,706120

Amount disposed (landfilled) (t)

802

148

(654)

PRTR substances (quantity, discharged) (t)

110

115

5

7,911

9,632

1,721

Reduced costs through energy saving

150

180

30

Reduced costs related to water use

1

1

0

Proceeds from selling environmentally friendly products

6,742

8,293

1,551

Income from selling valuable resources

1,018

1,158

140

Economic effects

3.Economic effects of environmental conservation policies (million yen)

*The ( ) indicates a decrease from the previous fiscal year.
Basic Items
1.Target Period: FY2013 (April 2013 to March 2014)
FY2014 (April 2014 to March 2015)

2. Scope of Statistics:
Calsonic Kansei Corporation
Gunma Plant

Overseas affiliates
North
America

Oppama Plant
Yoshimi Plant

Calsonic Kansei North America Inc.
Calsonic Kansei Mexicana, S.A. de C.V.

EuropeCalsonic Kansei UK Limited

Kodama Plant

Calsonic Kansei Sunderland LimitedExperiment Study Center

Calsonic Kansei Spain, S.A.

R&D Center and Headquarters

Calsonic Kansei Romania S.R.L.
Asia

Domestic AffiliatedCompanies

Daihan Calsonic Corp.
Calsonic Kansei Korea Corp.

CKK Corporation

Calsonic Kansei affiliates in China

CKF Corporation

Calsonic Kansei Thailand Co., Ltd.

CKP Corporation

Calsonic Kansei Malaysia Sdn. Bhd.

Calsonic Kansei Utsunomiya Corporation

Calsonic Kansei Motherson Auto Products Limited

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

3.Statistical methods: Basically, we calculate costs in compliance with the guidelines issued by the Ministry of the Environment as a reference.

44

9. Environment - Management of Chemical Substances
Efforts to Manage Chemical Substances
Substances that could impact or cause a burden on the environment are used in some products, and for the manufacture ofitems designed to improve the quality of these products. Therefore, there are concerns that these substances could have asignificant impact on the environment during the manufacture and use of these products and also when they are discarded.
Global awareness of the environment is now increasing and more requests to reduce and stop using these substances arecoming in every year, both from home and abroad.
In response, we are promoting the responsible management of chemical substances (environmentally hazardous substances)by adhering to the laws and regulations of each country, responding promptly to our customers’ requests, and setting our own
goals voluntarily.

1. Basic Concepts
To achieve responsible risk management for products, the manufacturing process, purchased materials and processedmaterials, we adhere to the following fundamental principles: use as few harmful chemicals as possible, eliminate as many
harmful substances as possible and change to alternatives and properly manage harmful chemicals if they have to be used.

Environmentally Hazardous
Substances in Products●Reducing the amounts of environmentally hazardous substances used in products

Environmentally Hazardous
Substances Used in
Manufacturing at Plants●Reducing emissions of environmentally hazardous substances used in the manufacturing process●Immediate disclosure of the amounts of environmentally hazardous substances used in products●Properly managing used chemical substances

Operations for green procurement

Environmentally Hazardous
Substances in Purchased Items●Confirming the presence of chemical substances used in purchased items●Confirming the environmental management of our business partners

2. Environmentally Hazardous Substances in Products■ Reducing the Amounts of Environmentally Hazardous Substances Used in Products
Calsonic Kansei doesn’t just comply with the legal restrictions of each country. They also set their own goals, manage anduse follow-up systems, promote the development of alternative technologies, and work towards reducing the amounts ofenvironmentally hazardous substances used in their products.
Calsonic Kansei’s Efforts

Legislation

Regulations

European ELV
Directive

Substances

Regulatory
schedule

Four substances(lead, cadmium, mercury,hexavalent chromium)

Prohibited from
July 2003

Hexavalent chromium,corrosion coating

Prohibited from
July 2007

13 VOC substances found in
vehicle interiors

Prohibited/reduc
ed for new carsfrom July 2007

Compliancecompleted

Applying a Pb-free solder

Prohibited for
new cars fromJanuary 2016

Currently working towards expanded adoption.

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Compliance completed
Except for some exemptions

CompliancecompletedSelf-regulations

European
REACH
Regulations

SVHC*

Effective June 1.
Currently underway.

*1: SVHC stands for “substance of very high concern” and is scheduled to include about 1,500 specific items, such as carcinogenic substances.

45

9. Environment - Management of Chemical Substances
3. Environmental Activities at Plants■ Reducing Emissions of Volatile Organic Compounds (VOC) from Plants into the Air

Domestic

We are conducting environmental compliance evaluations at each of our bases, and in order to comply
with regulations, we have installed thinner collection devices at plants that are subject to control. As aresult, our plants continue to operate without violating any regulations.

Overseas

At each of our overseas bases, we are changing over to the use of low-toluene and low-xylene paints.

■ Support for PRTR Legislation (Calsonic Kansei + Domestic affiliated companies)
At the Calsonic Kansei Group, we confirm the amounts of PRTR-regulated substances discharged, moved and used, and we work to
reduce the environmental burden. In terms of the results for FY2014, it was not possible to achieve the target emissions per unit
levels as a result of an increase in the amounts of nickel compound used over the previous fiscal year.
*PRTR (Pollutant Release & Transfer Register), (Act on the Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment, published in
1999)

Amount Used, Discharged, and Moved (Calsonic Kansei + Domestic affiliated companies)
Achievement status

Amount used per
unit
Mid-term target for amountused per unit

Amount used
Amountdischarged/moved[kg]

Management item

FY 2010(base year)
results[kg/100 million yen]Comparedwith FY2010

Comparedwith thepreviousyear

Chemical
substances used
per unit(kg/hundred million
yen)

72.7

1.3%
reduction

7.7%
increaseAmount used (t)

300

17%
reduction

1.8%
reduction

Amount Discharged/Moved in FY2014 (total: 115t)
Lead and its compounds
3%
Others3%

1-bromopropane
3%
1,3,5-trimethyl benzene
5%Ethyl benzene
5%
FY2010FY2011FY2012FY2013

FY2014■ Management of PCB
Appropriate management regulations have been implemented for electrical devices that include PCBs as
waste products for special management in accordance with the law. PCBs are also scheduled for prompt
disposal, which has already completed at some bases.

Xylene13%

Toluene53%

Ferric chloride
14%■ Thorough Water Quality Management
We have set our voluntary management targets (80% of the regulatory value) and are conducting stricter
management than the law requires.
■ Thorough Air Quality Management
We can reduce sulfur oxide (SOx) and CO2 consumption by switching to special heavy oil A fuel (containing only 10% of the sulfur content of heavy
oil A) as well as converting natural gas for combustion and reducing the amount used by adopting energy-saving activities.
■ Environmental Contamination Incidents or Grievances
Rules for collecting data on overseas environmental incidents were established in FY2011 in order to manage them as quickly as possible. No
environmental incidents with the potential to affect the environment at large occurred in FY2014.
■ Efforts to Clean up Soil Ground Water and Prevent Contamination
We are addressing the current situation by focusing efforts on plants which have already been contaminated, and we are implementing preventive
measures and conducting thorough investigations.

1. Efforts for Advanced Prevention• Switching from subterranean fuel management to above ground management. (All completed in FY 2003)• Converting from special heavy oil A to natural gas and LPG (including CO2 reductions)2. Thorough Surveying
We have already conducted investigations on the soil in each area, including affiliated companies.
We are also conducting an investigation of affiliated company groups.
46

9. Environment - Efforts Towards an Environmentally Balanced Factory
Efforts Towards an Environmentally Balanced Factory
The Calsonic Kansei Group is quantitatively evaluating the environmental burden output resulting from its industrial operations,and striving to reduce this burden by gaining a comprehensive understanding of the impact of all operations.
We promote reduced carbon emissions (CO2) and reduced emissions per unit from the viewpoint of global warming and also
promote 100% reuse of resources in order to create zero waste from the viewpoint of the effective use of resources, so that ourfactories can operate in balance with the environment.
Furthermore, in 2014, same as in 2013, our concerted efforts called “Energy Saving Special Activities” promoted energy
management through initiatives by the Group as a whole.

1. Prevention of Global Warming
NESCO-CK (Nissan Energy Saving Collaboration-Calsonic Kansei) activities were introduced in FY 2013, combining theenergy saving know-how of CK with that of CK’s major client, Nissan Motor Corporation.
In FY 2014, on-site diagnosis was conducted by the NESCO-CK Energy Saving Team at all business locations in Japan andmajor business locations overseas. As the result of diagnosis of business sites, we have selected proposals to reduce carbon
emissions (CO2), based on which countermeasures are underway.

■ Transition of CO2 Emissions from FY 1990 to FY 2014 (Calsonic Kansei + CKK + CKF)

CO2 Reduction Achievements
CO2 emissions were reduced by 46.9% and CO2 emissions per unit were reduced by 60.6% in FY2014, compared to FY1990 levels.

Transition of CO2 emissions and CO2 emissions per unit since 1990, compared to FY 1990 levels
Emissions: t

CO2 emissions per unit: tCO2/million yen

CO2 emissions
CO2 emissions per unit

Management Item
CO2 emissions (t-CO2)

FY1990 (baseyear) results

FY2014 results

Achievement
status74,39139,494

46.9% reduction

CO2 emissions per unit (t0.229
0.0901
60.6% reduction
CO2/million yen)
(0.33 was used as the CO2 conversion factor for electricity in comparison with FY 1990)

47

9. Environment - Efforts Towards an Environmentally Balanced Factory■ Overview of Activities until FY 2014 (Calsonic Kansei + Domestic Affiliated Companies)

We are aiming to reduce the amount of CO2 emissions per unit by 18.5% by FY2016, compared to
FY2005.
In order to achieve the goal described above, we targeted a 2% reduction in FY 2014, compared to FY 2013.
As a result of the reduction activities aimed at achieving this plan, there was a 3.5% increase in CO 2 emissions per unit anda 5.6% decrease in CO2 emissions.
[t-CO2][t-CO2/million yen]
Achievement status
FY2005(base year)
results

Management item

Comparedwith FY2005

Comparedwith theprevious year

CO2 emissions per
unit(t-CO2/million yen)

0.279828.3%
reduction

3.5%
increase

CO2 emissions(t-CO2)

103,183

32.4%
reduction

5.6%
reduction*0.38 was used as the CO2 conversion factor for electricity incomparison with FY 2005
Mid-term target for CO2
emissions per unit

CO2 emissions
FY 2005

FY2010FY2011FY2012FY2013

FY2014CO2 emissions per unit

Overview and Discussion of Activities
1. We carried out “Energy-Saving Special Activities” in which all of our bases participated, consisting of the sharing of energy-saving
improvement cases, and the identification and improvement of items identified through energy saving diagnosis. However, as a resultof a reduction in domestic production volume, we were not able to meet our targets. We will continue to conduct improvement
activities and share improvement cases under “Energy-Saving Special Activities.”
2. As a result of our “Energy-Saving Special Activities”, the R&D Center and Headquarters received an award for excellence from the
Kanto-District Rational Use of Power Committee.
■ Overview of Activities until FY 2014 (Overseas Affiliated Companies)

We are aiming to reduce the amount of CO2 emissions per unit by 13.6% by FY2016, compared to
FY2005.
In order to achieve the goal described above, we targeted a 2% reduction in FY 2014, compared to FY 2013.
As a result of the reduction activities aimed at achieving this plan, there was a 5.0% decrease in CO2 emissions per unit anda 0.9% increase in CO2 emissions.
[t-CO2][t-CO2/million yen]

Achievement status
Management item

FY2005(base year)
results

Comparedwith FY2005

Comparedwith theprevious year

CO2 emissions per
unit(t-CO2/million yen)

0.291920.6%
reduction

5.0%
reduction

CO2 emissions(t-CO2)79,50757.2％
increase

0.6%
increase*0.38 was used as the CO2 conversion factor for electricity incomparison with FY 2005
CO2 emissions
FY 2005

FY2010FY2011FY2012FY2013

FY2014CO2 emissions per
unit

Mid-term target for CO2
emissions per unit

Overview and Discussion of Activities
1. We conducted energy-saving diagnosis at major business locations to identify items for improvement and lead to reductions
in CO2 emissions per unit.
2. CO2 emissions per unit increased over the previous fiscal year due to an increase in production locations overseas and anincrease in the overseas production volume.
3. In 2015, we will confirm and follow-up on the results of the energy-saving diagnosis items.

48

9． Environment - Efforts Towards an Environmentally Balanced Factory
Energy-Saving Activities
The Calsonic Kansei Group including affiliated companies conducts energy-saving activities in order to reduce CO2 emissions.
[Regular Meetings]
Energy use reduction targets are set for the Group as a whole and each business location. In an effort to achieve these targets, energysaving items are planned and proposed, and the progress of implementation is confirmed on a regular basis. In addition, efforts are made toachieve leveling through the exchange of information and opinions regarding energy saving.
[Energy-Saving Diagnosis]• Japan
In an effort to improve the technical skills of employees involved with energy at each business location,
the “Energy-Saving Engineering School”, which consists of a study meeting on energy-saving knowledge with plants, offices, and affiliatedcompanies, and the “Joint On-site Energy-Saving Diagnosis” are conducted at the beginning of each fiscal year. Subsequently, an energysaving diagnosis is conducted on the operation status of facilities in the field at each business locations, based on which improvement items
are identified, proposal are made to the business locations that were diagnosed, and improvements are implemented.
• Overseas
For overseas business locations where production volumes have grown over the past few years, we also make visits to the field to conduct
energy-saving diagnosis in the same manner as for Japan, based on which improvement items are identified, proposal are made to thebusiness locations that were diagnosed, and improvements are implemented.

Joint On-site EnergySaving Diagnosis

CKMX San Francisco Plant EnergySaving Diagnosis[FY2014 On-site Energy-Saving Diagnosis Proposal Results]
RegionNumber of businesslocations diagnosed

Number of items

Electricity savings (MWh)CO2 reductions (t-CO2)

Reduction rate (%)

Japan

18 locations

555

7,227

2,863

3.3

Overseas

Four countries,
eight locations

462

11,2034,144

4.8[Energy-Saving Improvement Practices Presentation Meeting]
An Energy-Saving Improvement Practices Presentation Meeting is held every March with the participation of the Vice President, energyrelated offices, and personnel responsible for energy saving from each business location to both share information on the aims, results, andissues of energy-saving activities that were implemented at each business location and get suggestions on energy-saving items for thefollowing fiscal year. In addition, awards such as best achievement awards are given in recognition of highly-regarded efforts that were
presented.

Case Study Presentation
Meeting

Best Achievement Awards
Ceremony
Collection of Successful Case
Studies[Issuance of Collection of Successful Case Studies]
A collection of successful case studies of energy saving(*) and other related initiatives is gathered and distributed to all business locations,
including those outside of Japan. *: Resource conservation49

9. Environment - Efforts Towards an Environmentally Balanced Factory■ Regional CO2 Emission Status in FY 2014

FY13

FY05

[t-CO2]

FY14

We assessed the CO2 emission status of ourdomestic and overseas affiliated companies.

Japan

North America

EuropeAsia■ FY2014 Results (Ton-Kilometer) at the Logistics Stage (Calsonic Kansei)
The right-hand graph shows a result of less than 30
million ton-kilometer, which does not require
notification, etc. However, we have drawn up a
reduction plan for logistics and we are making efforts
towards reductions.

[10,000 ton kilometers]

3,000
2,500

Overview and Discussion of Activities

2,652

2,528
2,269

2,219 2,121

2,000

CO2 emissions at the logistics stage were reduced by
17% over the previous fiscal year through the promotionof rail transportation and the promotion of sea
transportation.

1,949
1,654 1,631

1,500

1,360

1,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 (FY)2. Natural Resource Conservation Activities
To utilize the planet’s limited resources efficiently, we are seeking to achieve zero emissions at all the global business bases ofour group, to promote conservation activities, and to reduce the amounts of materials used and waste generated (waste andvaluables).
Flowchart Illustrating Reuse Operations for Waste Discharged from Plants
Categories Type

Methods for Handling/Disposal

Disposal Location

Methods for Effective Usage

Recycled Products

Categories Type

Methods for Handling/Disposal

Disposal Location

Methods for Effective Usage

Recycled Products

Oil waste (including benzene and waste LLC), other oily
water

Oily water separation

Cement manufacturers Calsonic Kansei (fuel)Sales of resources (recycled heavy oil)

Fuels, cement, roadbed materials

High quality paper, newspaper, magazines

Sorting/dissolving

Paper manufacturers

Sales of resources

Toilet paper, etc.

Cardboard, confidential documents, paper cores

Sorting/dissolving

Paper manufacturers

Sales of resources

Recycled paper, cardboard medium, etc.

Iron scraps and empty cans

Sorting/dissolving

Metal refining manufacturers

Steel-making materials

Steel, non ferrous metals (copper, aluminum, stainless steel) materials

Oil waste (cooking oil waste)

Separation/recycling

Oleochemical manufacturers

Fuel for oleochemical manufacturers’ company cars,
feed

Biodiesel fuels, assorted feed

Fluorescent waste

Crushing/separation

Material manufacturers

Recycled materials for each element

Recycled materials (mercury, glass, metals)

Glass bottles

Sorting/crushing

Glass manufacturers

Glass materials

Glass bottles

Waste plastic (soft)

Crushing, volume reduction andsolidification

Resin-recycling manufacturers

Boiler fuels

Solid fuels

Oil waste (oil-bearing waste cloth)

Incineration

Waste heat boiler installation manufacturers

Utilization of waste heat (collecting steam)

Boiler fuels

Waste plastic

Crushing/separation

General recycling manufacturers

Sorting, steel-making materials, fuels

Ferrous materials, solid fuels, fuels

Incineration and fusion

Shaft furnace manufacturers

Shaft furnace-reducing agents

Steel-making materials, roadbed materials (incineration residues)

Sludge (flux, grinding residue)

Incineration

Shaft furnace manufacturers

Utilization of waste heat (furnace heat reserves)
Shaft furnace-reducing agents

Roadbed materials (incineration residues)

Dehydrated sludge (filter press)

Classification

Shaft furnace manufacturers

Processing granular materials

Raw materials for cement

Wood scraps

Crushing

Waste wood-recycling manufacturers

Compressed graft cutting

Laminated wood (particle boards)

Wood clippings and grass

Crushing/fermentation

Compost manufacturers

Compost materials

CompostMetal scraps (including aluminum chips)

Fluorescent waste (crushed pieces)

Infectious waste

Glass ceramic scraps

SludgeOil waste (filter)50

9. Environment - Efforts Towards an Environmentally
Balanced Factory■ Overview of Activities until FY 2014 (Calsonic Kansei + Domestic Affiliated Companies)
We are aiming to reduce the amount of CO2 emissions per unit by 18.1% by FY2016, compared to FY2005.
In order to achieve the goal described above, we targeted a 2% reduction in FY 2014, compared to FY 2013.
As a result of the reduction activities aimed at achieving this plan, there was a 5.6% increase in emissions per unit and a
3.7% decrease in CO2 emissions.
[t]Achievement status[t/million yen]

20,0000.050

Management
item

0.040

15,0000.030
10,0000.020
5,000

FY2005(base
year)
results

Comparedwith
FY2005Comparedwith theprevious
year

Emissions per
unit(t/million yen)

0.0473

26.5%
reduction

5.6%
increaseAmount ofemissions (t)17,43330.6%
reduction

3.7%
reduction

0.010

0

0.000
FY2005 FY2010 FY2011 FY2012 FY2013 FY2014

Amountof emissions
排出物発生量

排出物原単位中期目標

Mid-term target for emissions per unit

排出量原単位

Emissions per unit

Overview and Discussion of Activities
We implemented the horizontal deployment of resource-saving activities and the improvement of poorly performing processes bypromoting MTCR activities in each plant. However, as a result of a reduction in domestic production volume, we were not able tomeet our targets.
We will aim to focus the strengthening of reduction activities at business locations with high total emissions.
■ Overview of Activities until FY 2014 (Overseas Affiliated Companies)
We are aiming to reduce the amount of CO2 emissions per unit by 6% by FY2016, compared to FY2010.
In order to achieve the goal described above, we targeted a 1% reduction in FY 2014, compared to FY 2013.
As a result of the reduction activities aimed at achieving this plan, there was a 5.8% decrease in emissions per unit and a
1.4% decrease in CO2 emissions.
[t][t/million yen]

25,0000.050

20,0000.048

15,0000.046

10,000

0.044

5,000

0.042

0

0.040

Achievement status

FY 2010(base
year)
results

Comparedwith FY2010

Comparedwith theprevious
year

Emissions per
unit(t/million yen)

0.0492

11.7%
reduction

5.8%
reduction

Amount ofemissions (t)18,99723.5%
increase

1.4%
reduction

Management
item

Amount of emissions

FY2010 FY2011 FY2012 FY2013 FY2014

Mid-term target for emissions
per unit

Emissions per unit

Overview and Discussion of Activities
As a result of the implementation of the horizontal deployment of resource-saving activities and the improvement of poorly
performing processes by promoting MTCR activities in each plant, we managed to achieve the targets.
51

9. Environment - Efforts Towards an
Environmentally Balanced Factory■ Regional Total for Generated Waste Amount and Amount Recycled in FY2014[t]

Total amount of generated
waste
Recycled amountJapan

North America

EuropeAsia

Zero Landfill (Reduction of Landfilled Waste Ratio) (Overseas Affiliated Companies)
We are aiming to reduce the amount of landfilled waste overseas to zero by 2015, with FY 2012 as a base year.
In order to achieve the goal described above, we are targeting to reduce Landfill Waste Ratio to below 3% in FY 2014.
As a result of the reduction activities aimed at achieving this plan, there was a reduction to 2.9%.

Achievement status
Management item

FY 2012 results

Landfilled waste ratio (%)

FY2013 results

FY2014 results

13.1

2.9

84.2

Compared with
Compared withthe previous
FY2012
year
96.6%
77.9%
reduction
reduction

Overview and Discussion of Activities
As a result of a revision of the waste separation method and recycling it as an alternative fuel at cement plants, we managed toachieve the targets.

3. Water Resources Used and Reduction Measures■ Overview of Activities until FY 2014 (Calsonic Kansei + Domestic Affiliated Companies)
We are aiming to reduce the amount of water used per unit by 21.4% by FY2016, compared to FY2009.
In order to achieve the goal described above, we targeted a 1% reduction in FY 2014, compared to FY 2013.
As a result of the reduction activities aimed at achieving this plan, there was a 12.9% increase in water used per unit and a
2.9% increase in water consumption.
[Unit: km3]

[m3/million yen]

800

2.000

600

1.500

200

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

Management item

FY2009results

Comparedwith
FY2009Comparedwith theprevious
year

1.000

Water used perunit(㎥/million yen)

2.037

4.6%
reduction

12.9%
increase

0.500

Water consumption(thousand m3)

734

7.8%
reduction

2.9%
increase

400

0Achievement status

2.500

0.000

Water
consumption
水使用量
使用量原単位Water
used per unit

Mid-term
target for water used
水使用量原単位中期目標
per unit

Overview and Discussion of Activities
Although we conducted measures including checks for leaks, the identification of water use reduction item, and improvement
activities, we were not able to meet our targets due to the impact of increased production volumes for some products. We will aim tofocus the strengthening of reduction activities at business locations with high usage.

52

9. Environment - Recycling Activities■ Regional Amount of Water Resources Usage in FY 2014
[Unit: km3]

676

Underground
water

370

Industrial water
Water supply

233

28

Japan

North America

EuropeAsia

Recycling Activities
Calsonic Kansei has been consistently involved in recycling activities as a voluntary initiative for environmental conservation even though this may affect profits. We will continue to promote recycling activities to meet the needs of a sustainable society.

1. Environmentally Hazardous Substances in Purchased Items
Calsonic Kansei is promoting in-house recycling activities as well as the recycling of waste generated from outsourced
business activities.

2. Activities in FY2014■Secondary Aluminum Alloy

We collect aluminum mill ends, etc., generated in the manufacturing process used to recycle secondary aluminum alloy, andthen reuse them for our affiliated companies’ aluminum products. This contributes to resource recycling.
■ Collecting and Recycling Precious Metals from Used Catalysts for Purifying Exhaust Gases

We effectively separate and collect materials containing precious metals (wash coat) that can be used as a valuable resource from
catalysts for purifying automobile exhaust fumes, etc. by using environmentally friendly dry separation devices.

FY

Amount of collected andrecycled aluminum

Amount of used catalysts
collected for purifying exhaustgases

FY 2010 results

2,630 tons

13,052 units

FY 2011 results

2,350 tons

18,422 units

FY 2012 results

2,030 tons

21,075 units

FY 2013 results

1,915 tons

19,125 units

FY 2014 results

1,937 tons

22,850 units53

10. Fair Business Practices - Compliance
ComplianceIn pursuing CSR, it is important for all employees to practice compliance based on a strong sense of ethics.
At Calsonic Kansei (“CK”), we have established Compliance Committees to implement compliance in each region andat each business location around the world, and assigned officers and staff members responsible for compliance atthese locations in an effort to spread and foster an awareness of compliance.

Thoroughly Ensuring Compliance Among Employees
All employees’ practice of compliance based on a strong sense of ethics is the foundation of CSR promotion at CK. The
Calsonic Kansei Global Code of Conduct was established in 2003 in order to strengthen the global compliance structure. This
serves as a code of conduct that is all CK employees around the world are expected to follow, and it applies for the entire CKGroup on a global level.
As a compliance management system, members of management hold the Global Compliance Committee every month todiscuss compliance-related measures and compliance-related proposals. In addition, Compliance Committees are also
regularly held in each region and at each business location around the world to discuss compliance-related matters.
One example of a compliance measure is the Compliance Program that was developed in 2012 for the concrete
implementation of compliance among the CK Group on a global level. This program has organized the compliance activities
implemented up until now in a systematic manner, and currently we conduct planned internal training and education activities inaccordance with this program in an effort to promote compliance activities on a global level and ensure that compliance is put inpractice.

Global Compliance Officer
Global Compliance Committee

Japanese Committee(CKJ and Japanesesubsidiaries)

North American
Committee(CKA)

EuropeanCommittee(CKEX)

ChineseCommittee(CKC)

Thai Committee(CKT)

Malaysian Committee(CKMY)In addition, in order to enhance the compliance function, each region and business location regularly monitors their complianceactivities to enable the Headquarters to work together with each region and business location in global compliance activities aspart of efforts to spread the awareness of compliance and prevent violations.
In the midst of all this, the CK Group responds in earnest if employees are found to be in violation or in conflict with the Code of
Conduct or laws and regulations.

Compliance Activities
At Calsonic Kansei (“CK”), we have established the Calsonic Kansei Global Code of Conduct, and assigned officers and staff
members responsible for implementing compliance measures in each region and at each business location around the world.
We regularly monitor the main compliance activities in these regions and at these locations. This compliance monitoring
focuses on the following three foundations:
1. Ensuring a supervisory environment
2. Compliance risk management
3. Education and awareness raising activities
One education and awareness raising activity is the education program on the CK Code of Conduct. For education on the
Code of Conduct in Japan, training is provided every year through e-learning and pledges are collected in order to strengthenawareness towards compliance. In addition, the same training as that used by CK is conducted for every company in the CKGroup on a global level. Education consists of not only education on the Code of Conduct, but also education on global risks
that include anti-monopoly law, anti-corruption law, and social media response. Education is also provided on issues asnecessary based on compliance risks in each region and business location and compliance awareness surveys. In addition,
regular education is also provided on topics that include the Antimonopoly Act, the Subcontractors Act, and service contracts.
5410. Fair Business Practices - Compliance
Overall Image of the Global Compliance Action Plan*
Green/Growth/Global/Great Company
Aim to be one of the world’s top ten parts companies

Great Company = Goal
(GX4 T10)*

Operation of compliance monitoring

Assurance ofcontrolenvironment+

Compliance risk
management+

Training &Awarenessbuild
activities

Strong cooperation between each group company and the headquarters
Global Code of Conduct for Calsonic Kansei Group[Principle]
Calsonic Kansei shall consistently treat customers, employees, shareholders, suppliers and communities with honesty,
integrity, fairness and respect.
The following standards apply to all employees in Calsonic Kansei group companies (collectively herein referred to as“CK” or “Company”). Each member of the Company is charged with responsibility to uphold and extend this code of
conduct.
[Standards]
1. Comply with all laws and rules
CK employees will abide by all laws of the country, and all regulations of the Company, in which they work.
2. Avoid Conflict of Interest
The best interests of CK are expected to be foremost in the minds of employees. It is prohibited to behave, act or use
information in a way conflicting with Company interests.
3. Preserve Company Assets
CK employees are personally accountable for preserving and safeguarding Company assets.
Unauthorized use or diversion of Company assets, including funds, information and intellectual property, is prohibited.
4. Be Impartial and Fair
CK employees must maintain impartial and fair relationships with business partners, including dealers, parts suppliers, andother third parties.
5. Be Transparent and Accountable
CK employees shall make fair, transparent, timely and appropriate disclosure of the Company’s business activities to ourstakeholders, including stockholders, customers, other employees and local communities
6. Value Diversity and Provide Equal Opportunity
We value and respect the diversity of our employees, suppliers, customers and communities.
Discrimination or harassment, in any form or degree, will not be tolerated.
7. Be Environmentally Responsible
CK employees shall strive, within the business objectives of CK, to consider environmental protection when developing products
and services, to promote recycling and to conserve materials and energy.
8. Be Active; Report Violations
CK employees are expected to carry out their work in accordance with the Code of Conduct.
Employees who suspect that a violation of the Code of Conduct has occurred are obligated to report it as soon as possible, andsuch employees shall be protected from retaliation.

55

10. Fair Business Practices - Compliance
Respect for Human Rights and Prohibition of Discrimination and Harassment
Article 6 “Value Diversity and Provide Equal Opportunity” of the Calsonic Kansei Global Code of Conduct states “We value andrespect the diversity of our employees, suppliers, customers and communities. Discrimination or harassment, in any form or
degree, will not be tolerated.” Officers and employees must respect each other’s human rights and are prohibited fromdiscriminating against or harassing other officers and employees or allowing discrimination or harassment to occur due to race,
nationality, gender, religion, physical disability, age, place of birth, or any other reasons.
In addition, because sexual harassment or any other form of harassment (including bullying) cannot be allowed in the workplace,
we will make every effort to prevent harassment so that none of our employees experience it, whether male or female.

Whistleblowing System to Improve the Soundness of Operations
At the Calsonic Kansei Group, we have introduced a whistleblowing system to ensure that each and every employee
understands compliance, to thoroughly enforce compliance, and to make it possible to confirm whether corporate activities arebeing conducted properly. We have developed a framework that enables employees to directly communicate opinions,questions, and requests to the company, which is helpful not only in terms of improving operations and the workplace, but also interms of creating a corporate culture that complies with corporate ethics.
This framework also incorporates the concept of whistleblower protection in accordance with the Whistle-Blower Protection Act
that came into effect in April 2006, in accordance with which the Easy Voice System serves as the contact point for CK at eachdomestic Group company. In addition, as the Easy Voice System began to become established, from FY2014 we launched the
CK Helpline as an external whistleblowing contact point in Japan in order to further promote a purifying effect.
The CK Helpline accepts reports both via a website and overthe phone and allows employees to make reports using
either their actual name or anonymously. A person from athird-party organization with abundant experience accepts
reports while protecting the privacy of the whistleblower, andthen contacts the related departments or organization so thatthe appropriate response can be taken.
In each region and business location around the world, we
also establish and run whistleblowing systems that are
optimal for each company while giving consideration to thecultures and laws of each country. In North America, we haveestablished a hotline as an external contact point that accepts
reports via a website or over the phone 24 hours a day. We
are also studying the establishment of external contact pointin Asia and Europe going forward.
Under our whistleblowing systems, we respond carefully toensure that whistleblowers do not suffer from any
disadvantages from the perspective of whistleblower
protection.

One by one, we all make the CKGroup a company to be proud of !!

56

10. Fair Business Practices - Information Security
Information Security

Basic StanceAt the Calsonic Kansei Group, we share the Information Security Policy on a global level, and the Global Information Security
Committee implements the necessary measures to strengthen information security in reference to matters such as internal andexternal cases of information leaks. In addition, we conduct internal education on an ongoing basis in an effort to spreadawareness of and instill information security.
In addition, to ensure that the personal information of business partners and other party is adequately protected, CalsonicKansei has developed Personal Information Management Regulations that stipulate matters including management systems,
rules, and procedures based on laws, related government ordinances, and other guidelines, etc. concerning the protection of
personal information, and in accordance with these regulations personal information is thoroughly managed throughout theentire company.
A high level of awareness towards proper management among each and every employee is essential for information security
compliance. We work to strengthen this awareness through education on and implementation of the following rules.
[Main information security compliance rules]
1. Ensuring password management of information devices through the periodic changing of passwords, etc. is mandatory.
2. The use of software and services other than permitted software and services is strictly prohibited.
3. Confirmation of email receiving addresses to prevent incorrect transmission of email is mandatory.
4. Access limitations to suspicious sites and monitoring will be conducted during Internet use.
5. We will issue precautions and conduct education to ensure that employees do not discuss our company’s confidential
information in public places where it could be secretly listened to by a third party.
[Employee education results]
Education participation rate (Japan)
Education participation rate (overseas)

FY2014100%
89%

FY2013
100 %ーManagement System
In order to address information security as a management issue at Calsonic Kansei, we have established an information security
management structure with the Vice President that is responsible for the information systems department serving as the Chief
Information Officer.
The Chief Information Officer regularly
President
holds the Global Information Security
Committee, at which the discussions
necessary to ensure the proper implementation
Chief Information Officer (CIO)
of information security for the entire Group(Vice President that is responsible for the information systems department)
are conducted. A Secretariat composed of
personnel from information systems, generalaffairs, and human resources departments
Global Information Security Committee
has been established as a dedicated division
for information security, and the Chief
ChairmanInformation Officer assists this function.
Information security
In addition, measures are planned andinternal audits
Secretariat
implemented to ensure that internal
regulations related to information security
run smoothly and efficiently.
At major overseas Group companies,
Information Security Committees have been
established and management systems
Global Function
Overseas Group Company Overseas Group Company
Representative
Representative
Representativeequivalent to those at Calsonic Kansei
have been introduced to be fully responsiblefor information security at each company.

57

10. Fair Business Practices - Export Control
Specific Initiatives
At Calsonic Kansei, we implement security measures including the management of digital data access rights and use
restrictions on external storage media while conducting activities to raise awareness among employees.
Initiatives

Details

Security measures• Clarification of access rights through confidentiality classifications• Restrictions on writing data onto external storage media• Anti-virus measures and hard disks encryption

Increasing employee awareness• Distribution of messages to raise awareness by the responsible personnel• Implementation of new employee education and regular employee education
programmes• Implementation of assessment

Key activities in FY2014
 The Global Security Committee was held twice and the Japan Region Global Information Security Committee was held fourtimes during FY2014 to deploy new measure related to improving information security and to share information on the statusof audits.
 Security measures: internal audit conducted on risks of information leaks
 Employee awareness activities: employee education provided with global standardized contents
 “Security Week” for the purpose of improving knowledge and awareness of security among all employees on a global level Distribution of a message by President Moriya to raise awareness Posting of messages over the intranet and on posters to improve awareness of security, etc.

Export Control
An Export Control Committee led by the CEO was established in order
to comply with the Foreign Exchange and Foreign Trade Act, Export
Trade Control Orders, and Foreign Exchange Orders and to implement
appropriate export control. The committee’s member consist ofmembers of each department involved with exports, and thecommittee’s tasks include the control of export items, acquiring
information on new laws and regulations, and the training of employees.
Overseas, personnel responsible for exports at each business location
conduct proper management in cooperation with the Headquarters inorder to comply with the export control regulations of each respective
country.
There were no violations of such regulations in Japan or overseas
during FY2014.

CEO(President)

Personnel responsible
for export control
SupportExport Control
Committee
Secretariat

Audit
Internal Audit
OfficeLegal GroupAccounting
Department

Overseas business locations anddomestic affiliated companies
Departments involved with
exports

58

11. Consumer Issues - Quality Initiatives
Quality initiatives
To Become Trusted by Customers Around the World
Calsonic Kansei considers quality to be one of the most important issues for the company as a whole and it aims to contribute tosociety and become a company trusted by customers by continuing to provide high quality in all situations, including development,
design, production, and logistics.

Quality Vision
Achieve the world’s No.1 quality to satisfy customers.
Framework to promote quality
In order to achieve the No. 1 quality in the world to satisfy
customers at Calsonic Kansei, product business units,
regions (manufacturing plants), and global functions work
together towards Monozukuri innovation. Because humanresources development and teamwork is the foundation
for Monozukuri innovation, values related to humanresource development and cross-function and crossregion initiatives are shared as the CK WAY.
Specifically, CK has an optimal quality assurance systemthrough communication and regular meetings between
global functions, product business units and regions.
In addition, based on CKPS, we have developed the
Global Quality Management System (Global-QMS) and
we strive to further improve quality and improve costcompetitiveness.

Product business units

GlobalfunctionsMonozukuri
innovation
Human
resourcesdevelopment
teamwork.

Regions(Manufacturing plants)

CKPS(Calsonic Kansei Production System)
At Calsonic Kansei, we share the CKPS (Calsonic Kansei Production System) which is the basis of our manufacturingmindset. Development and production engineering and manufacturing shop floors follow this integrated system.
CKPS aims to improve not only quality, but also profitability and competitiveness, and to this end we have established a
production system for overall optimization that is thoroughly in line with customers as we aim to achieve unlimited quality
improvements.

Quality and cost enhancement of our own
processes

Product
designProcessdesignManufacturing(standard
operation)

Continuous quality improvements5911. Consumer Issues - Quality Initiatives
Initiatives to Improve Quality and Reliability
At Calsonic Kansei, we also work to improve technological capabilities that involve quality and reliability.
As an automotive parts systems manufacturer, our air-conditioning business unit promptly received ISO/TS16949 certification as a new
quality standard for the automotive industry in 2003, and in 2005 ISO/TS16949 was certified for the entire company for all products.
Development Technologies with Heightened Accuracy
We clarify risks through assessments of the novelty and materiality of new products from the design concept phase, and conduct design
review and process design review using dedicated reviewers in order to improve the safety and reliability of products.
Furthermore, in pursuit of continuous Monozukuri innovation, the Production Engineering Center develops and verifies prototypes and new
manufacturing methods and establishes global standards as it works to achieve drawing and production processes based on the principles
and fundamentals of manufacturing.

Global standards

Measuring technologies
High-precision measurement
equipment

TIG/MIG welding
machineProduct quality assurance is not possible
without measurement. We use cuttingedge measurement equipment andmeasurement technology to support
measurement for product quality
assurance and the investigation of
manufacturing method and process
mechanisms in order to support quality.

Welding conditions are designed
and verified for each productusing a master machine andtechnology standards arecommunicated to plants aroundthe world to ensure the joint
strength of welded parts.

Simultaneous activities

Advanced development
Fin molding machines

Ease of assembly
simultaneously

Because high-precision molding
is required for fins that are used
as one component in radiators,
we pursue processing methods
and the development of process
limitation in an aim for higher
speed and precision molding.

Product design and process
design are validated by staff
members around the world, andfeedback is provided on drawings
and processes. In this manner,correct product design andcorrect processes are designed
and verified for deployment on a
global level.

In addition, in order to ensure appropriate quality in the field of safety, environment, and comfort technology, we have reproduced market
environments through state-of-the-art equipment and experimental technologies in order to ensure a high level of reliability in the three levelsof vehicles, systems, and components.

Safety anddurability

Environment

Comfort

EMC assessment

Emissions and fuel-economy
assessment

Real car environment windtunnel test

Composite thermal
impact assessment

Multi-axis vibrationassessment

Wear and hammering
assessment

Component and solder durability
assessment

Radiator performanceassessment

Auto-function assessment equipment

VehiclesSystems

Components6011. Consumer Issues - Quality Initiatives
QSES(Quality System Evaluation System)
The Calsonic Kansei Group has unique global standards for the quality management systems of suppliers.
In order to achieve the basic quality policy on a global level, Calsonic Kansei has established the independent QSES
(Quality System Evaluation System), in accordance with which Calsonic conducts evaluations on the quality systems andprocess management of the entire company and suppliers.
Through the identification of problems and continuous corrective actions by QSES, we constantly maintain even higher
levels of management, which leads to the improvement of customer satisfaction.
In addition, through the development and expansion of QSES auditors (global masters, region masters, and auditors) on a
global level, we work to control inconsistencies in evaluations among all plants, and to promote the understanding of actual
conditions and shop floor improvement activities.

Headquarters

Regions

Global masters

Japan

North
America

Europe

China

Asia

Regionmasters

Regionmasters

Regionmasters

Regionmasters

Regionmasters

Auditors

Auditors

Auditors

Auditors

Auditors

Quality awareness-raising activities on a global level
Q-Forum
As a part of our quality awareness activities, we hold the Q-Forum annually. Also, a variety of events such as panel
exhibitions of quality concerns, recurrence prevention activities, presentations of quality improvement, and supplier quality
seminars are organized to raise awareness on quality by gaining new insights on quality in order to improve the quality ofour performance.
QC Circle Global Convention
All regions work on QC circle activities to quality
improvement activities in the shop floor.
Best practices are presented at annual QC circle global
conventions held at our Headquarters.
Presentations of the winners of regional competitions
raise motivation for further quality improvement.
The FY2014 QC Circle Global Tournament

Quality awards received from automotive manufacturers
Various awards have been received from automotive manufacturers in recognition of our efforts for quality improvement.
2013: Japan Region Excellent Quality Award from Nissan Motor Co., Ltd.
(Exhaust System, Compressor)
2012: Japan Regional Quality Award from Nissan Motor Co., Ltd.
(Category of Vehicle Systems, Heat Exchange System)
2011: Japan Regional Quality Award from Nissan Motor Co., Ltd.
(Category of Vehicle Systems, Climate System)
2010: Excellent Quality Award from Dongfeng Motor Company Limited
Calsonic Kansei (Guangzhou) Components

6111. Consumer Issues - Communication with Customers
Communication with customers (initiatives to improve customer satisfaction)
Calsonic Kansei conducts a customer satisfaction survey once a year in order to assess how customer view its day-to-day
business activities. This survey has been conducted since 2005, and 2014 marked the tenth year of the survey.
The survey was conducted as a questionnaire to which participants applied a five-level rating on items related to quality,
price, delivery, development, management, and sales activities (QCDDMS) along with comments on specific improvement
requirements.
Analysis is conducted based on the four points below.
• Monitoring over the years without changing the assessment items• Clarification of survey targets and an understanding of the collection status (understanding of relationship withcustomers)• Confirmation of changes and comments and the clarification of issues• Incorporation of issue improvement method in the plan for the next fiscal year and implementation
We aim to use this survey as a contact point for further enhancing communication with customers and to conduct activities
that better live up to the trust we have gained from customers.

FY2014 customer satisfaction by product(changes compared to FY2013)

Products
UP

DOWN

A
B
C
D
E
F
G
H
I
J
K

Overallaverage
0.78
0.18
0.16
0.14
0.12
0.11
0.06
-0.07
-0.18
-0.20
-0.23

FY2014 customer satisfaction by item
Extremely dissatisfied
Overall average

Quality

Dissatisfied

NormalSatisfied

Extremely satisfied

FY2013
assessment
FY2014assessment

Price

Delivery
Development

Management
Sales activities

The data gained and the VOC by customer, by product, and by region are
analyzed. Some examples of VOC gained during this fiscal year are as
follows.
[Points for improvement by function]
Sales:
1. Issues related to costs and cost details (172 cases).
2. Issues related to management (42 cases)
3. Issues related to response and speed (38 cases)
Development: 1. Issues related to new development and advanced
development (61 cases)
2. Issues related to management (project management,etc.) (46 cases)
3. Issues related to response and speed (41 cases)
Quality:
1. Issues related to management (119 cases)
2. Issues related to response and speed (75 cases)
3. Issues related to analysis and analysis capabilities (42cases)Overall evaluation
pointsNumber of questionnaires
collected

We hope that the planning and implementation of improvement proposals
for each of these functions will lead to improved customer satisfaction andthe establishment of better relationships.
Overall evaluation points in the past are displayed in the graph to the right.
6211. Consumer Issues - Supply Chain Management
Activities Involving Suppliers
Calsonic Kansei considers suppliers as equal partners, and aims for mutual sustainable growth while maintaining equal and fairrelationships based on mutual trust. As Calsonic Kansei becomes involved with more suppliers around the world in line with theglobalization of our business development, we will aim to improve our CSR management by sharing our ideas and policies with
suppliers in order to promote CSR activities.

Activity Overview
Calsonic Kansei thoroughly ensures fair, and impartial business processes in a transparent way when selecting suppliers. While
providing opportunities for broad participation, regardless of nationality, company size, and trading experience, Calsonic Kansei
reviews the details of proposals from suppliers across the relevant departments for the selection.
Furthermore, we comply with the CK Global Codes of Conduct to maintain the performance of equal and fair work at a highstandard level. In addition, we hold briefing sessions on Calsonic Kansei’s policies and regular liaison meetings in which wecommunicate with suppliers through surveys and exchanges of opinion. Furthermore, as an activity addressing compliance, wehave worked to spread awareness within the company about important points related to the procurement principles, theSubcontractors Act, and the Antimonopoly Act. For major suppliers, we have held CSR briefing sessions and requested
cooperation with CK’s activities. In FY2015 as well as FY2014, we will strengthen our internal systems related to human rights,
environmental issues, and CSR-related topics that are attracting great attention around the world.

Response to Disaster Risks
In addition to the business continuity plan (BCP) for the supplier chain developed in Japan and Thailand, we have commenced
studies for BCP in overseas regions other than Thailand, and also conduct activities for quick initial response.

Supplier Award System
Suppliers that contributed to business development were selected by relevant internal departments. Six companies won the
Outstanding Supplier Award in FY2013, and four companies won it in FY2014.

Development of Calsonic Kansei CSR Guidelines for Suppliers
In the briefing session on Calsonic Kansei’s policies held in February, FY2011, we explained about CSR to major suppliers torequest their cooperation with CSR activities.
In particular, we asked suppliers to comply with laws and regulations, and clarified measures in the event of compliance violation inorder to thoroughly prevent its recurrence. Since FY2011, Calsonic Kansei has included “Compliance with Laws and Regulations”
in its basic agreement, and has reflected it in its agreement with new suppliers. As we have created the Calsonic Kansei CSR
Guidelines for Suppliers (Japanese and English versions), we will continue to provide briefings to major suppliers in events such as
briefing sessions on policies to continuously request their cooperation with CSR activities.

Calsonic Kansei Supplier Guideline is here.

6311. Consumer Issues - Supply Chain Management
Strengthening Improvement Activities in Monozukuri with Suppliers
In FY2009, the Supplier Support Team (SST) was established as a dedicated structure related to Monozukuri in the CK
Purchasing Department, in order to strengthen the Monozukuri structure of suppliers and further trust relationships with them.
This team promotes joint activities for on-site improvement through CKPS based on agreements with suppliers. CK held
exhibitions to show the best practices based on agreements with suppliers and to share this information with other suppliers.
Accordingly, CK is creating an environment in which we can expect further, active improvements.
Furthermore, since FY2013, CK has commenced activities to calculate the level of contributions to the environment by
suppliers, while preparing numeric data on CO2 emissions to quantitatively confirm the improvement effects on environmental
issues that are receiving great attention. By clarifying the link between improvement activities and the environmental load, we
will promote joint activities to expand the scope while improving the awareness of environmental issues among suppliers.

Number of Suppliers Involved in Activities by Fiscal Year2009
10
companies

2010
10
companies

2011
10
companies

2012

2013

2014

8 companies

7 companies

6 companies

Promoting Calsonic Kansei Green Purchasing
Calsonic Kansei procures various items such as raw materials, indirect materials, and component parts and believes that it isimportant to manage procured items in order to control environmentally hazardous substances.
In accordance with the Calsonic Kansei Group Environmental Policy, in 2008, we summarized and issued the standards forenvironmental activities among suppliers as the “Calsonic Kansei Green Purchasing Policy” in which we request cooperationfrom suppliers.
We studied the substances contained in the procured items and verified their compliance with the requirements of IMDS, SDS,etc.
In addition, we studied if suppliers had acquired ISO14001 or any equivalent certification for their environmental management
systems, to work on improving our control of environmentally hazardous substances.
Note that the guideline contents were partially revised in October, 2014.

Response Policy for Conflict Minerals
In August, 2012, detailed laws were enacted that require us to report the use of four major minerals mined from the Democratic
Republic of Congo and the surrounding conflict areas that could be used as a source of funds for armed groups. Fully agreeing withthe purpose of these laws, Calsonic Kansei decided on a policy where we would investigate the use of conflict minerals in the
supply chain from the CRS standpoint and conduct activities to stop using those minerals.
• A preliminary survey was conducted from October to December 2012 (covering 40 companies).
• The main survey was conducted from 2013 (covering 224 companies in FY2013 and 288 companies in FY2014).
• We will continue to conduct the survey after FY2015 (covering 250 companies or more in FY2015).

6412. Community Participation and Development
Supporting children that will lead the future*This description focuses on the activities of the Group in Japan.

Calsonic Kansei will continue a wide range of support activities for supporting childrenthat will lead the future going forward.

Developing Future Engineers

Find what you love to do

We provide primary school pupils good opportunities to experience vehicle technology
and manufacturing with our hope that they become familiar with vehicles andMonozukuri.
We consider this activity as an opportunity to develop our staff by having them learn
principles and fundamentals of the technology to teach children as well as to let children
feel how interesting it is to be involved in Monozukuri.

Things You Want to Try
Support Project

Participation in Kids Engineer
We have been taking part in Kids Engineer, a participatory exhibition sponsored by The Society of Automotive
Engineers of Japan targeting primary school pupils, since 2008, when the exhibition started.
In 2010, we started having an exhibition booth managed by our voluntary staff. At Kids Engineer 2012, held in July, we
provided about 2000 children with an opportunity to experience Monozukuri.

Project Supporting What You Want to Do (On-site Lessons at Elementary Schools)
This is an activity of on-site lesson at a primary school started in 2012. We provide our special lesson program onscience.

Activities During FY2014
Visiting classes at elementary schools
June

Events participated in other than on-site lessons at elementary schools

1 school: Sakuragi (Kumagaya City)

July

Kids Engineer 2014 (venue: Pacifico Yokohama)AugustSummer Vacation Kids Community Center (venues: Mutsuji, Omiyaminami, Suzuya)
Saitama City Industrial Culture Festival (venue: Saitama City Industrial Cultural Center)

September

2 schools: Inubushihigashi and Kuzuu

October

3 schools: Tenmyou, Inubushi, and Sano

November

3 schools: Ueno, Tonara, andShimohikoma

December

3 schools: Sakai, Hatagawa, and Azuma

January

2 schools: Tada and Jouhoku

February

CKY participated in chamber of commerce exhibition (Venue: Cherryna Sagae)
Colabo Saitama (venue: Saitama Super Arena)
Mini Kids Engineer (venue: Hachinohe Institute of Technology)

Youth Development Children’s Festival (Saitama City Uemizu Community Center)

Colabo Saitama

Kids Engineer 201465

12. Community Participation and Development
Participation in Saturday Learning Supporters Activities Led by the Ministry of
Education, Culture, Sports, Science and Technology
As parts of its efforts to support children that will leadthe future, at Calsonic Kansei we provide a programin support of the Saturday Education Volunteer
Supporters activities.

Saturday Education Let's support kids studying at school on Saturday!
Volunteer Supporters.

*The name Saturday Education Volunteer Supporteron the website is the former name for the activities.

(From the website of the Ministry of Education, Culture,
Sports, Science and Technology)

Support for the Highschool International Conference Committee
As parts of its efforts to support children that will lead the future, at Calsonic Kansei we support the Highschool International
Conference Committee that is run by only high school students that are mainly from the Kanto region.
Approximately 80 high school students voluntarily participated in the 4th High School Students International Conference
Committee for 2014 that was held over a period of two days on February 21 and 22. The participants debated global social
problems such as diversity and water scarcity, and made presentations on things they could do in response.
We will continue supporting this committee in the hope that it will lead to the further enhancement and expansion of
improvement activities in response to social issues and the development of participants into global human resources capableof leading the future.
See here for the website of the High School Students
International Conference Committee.

(The 4th Highschool International Conference
Committee for 2014)(From the website of the Highschool International
Conference Committee)

Support for the Student Formula Japan Competition
We participate in and support the Student Formula Japan (SFJ) that has been held under the sponsorship of the Society ofAutomotive Engineers of Japan (JSAE) since 2003. The competition is an opportunity for students to develop skills related to
manufacturing , which in turn contributes to the expansion of the Japanese automotive industry. This competition serves as apublic activity for self-motivated students to cultivate various skills involved with object creation, and as training for those whowill one day play critical roles in the future of the automotive industry.

Donations of Photo News Bulletin Board to Local Elementary Schools
In the hopes that it will get children in social issues such as global warming, we have partnered with Asahi
Photo News Inc. to deliver photo news to local elementary schools.
6612. Community Participation and Development
Introduction of Workplace Charging*This description focuses on the activities of the Group in Japan.

(From a April 7, 2014 news release)

Introduction of Workplace Charging at Calsonic Kansei Corporation- Supporting the Spread of Electric Cars to Achieve a Sustainable Society 2014.4.7
Calsonic Kansei Corporation (Headquarters: Kita-ku, Saitama City; President and CEO: Hiroshi Moriya) introduced workplacecharging from April 2014 in order to support the spread of electric cars.
The corporate vision of Calsonic Kansei is to use its engineering capabilities to help realize a sustainable society throughmanufacturing as an automotive-related company. In fact, it is stated in our medium-term business plan GX4 T10 that we
strive to be a technology leader in the field of energy management for environmental cars of the next generation under theGreen strategy (developing innovative environment technologies and products that lead the world).
As part of these effort, Calsonic Kansei supplies inverters, lithium ion battery controllers, and other components for theultimate zero-emission electric car Nissan LEAF, while putting effort into improving their performance.
In addition to these technological contributions, we try to help popularize electric cars by implementing workplace charging inJapan, which is an initiative by Nissan Motor that has started in North America.

What is Workplace Charging?
Workplace charging is an initiative that promotes the installation of EV charging stations at office buildings and factories sothat employees and visitors can charge their electric cars while they work or do business. It aims to make it more pleasant touse electric cars.
Calsonic Kansei introduced this system in April 2014. For the neighbors, it has a positive impact on the environment bycontrolling the exhaust gas from commuters’ vehicles, and for employees, it has increased the convenience of commuting towork on electric cars. Through this initiative, we strive to build a win-win-win relationship among our community, company andemployees.

General chargers for electric vehicles were installed at each location(16 units, 32 charges points for the entire company) in order to develop
an environment that makes it easy to commute using electric cars andencourage the purchase of electric cars among employees.
In addition, quick chargers for electric vehicles (7 units for the entire
company) were installed in an effort to encourage use among thegeneral public and promote the spread of electric cars.

Experiment Study
CenterKodamaPlant
R&D Center andHeadquarters

Oppama
Plant*See here for the topics website that introduces workplace charging.

6712． Community Participation and Development
Introduction of Other Local Community Activities *This description focuses on the activities of the Group in Japan.

Cleaning Activities
All employees at each business location voluntarily conduct local beautification activities on a regular basis.

Activities on the Takasaki Linerailway close to the Headquarters

Activities around the Headquarters by
new employees

Communication with the Local Community
As we believe corporate business activities cannot survive without
communication with the local community, we cooperate with various
activities in the local community in order to gain the recognition and trustof people in the local community.

• Provision of quick chargers for electric vehicle tovisitors and local residents• Sponsorship of cultural activities in Saitama Prefecture
Sponsorship of the D SKIP CITY International Film Festival, etc.
• Donations to organizations for people with disabilities, etc.
• Donations to elementary schools• Support for and donations to Bon festival dances and fireworks
displays that are enjoyed together with people in the local community• Provision of quick chargers for electric vehicle to visitors and local
residents at each business location• Others
We also cooperate with residents’ associations through the above
activities, as we work to listen more carefully to the needs of people in
the local community and make improvements in response.

Social Contribution Investment Amount (Not Including Labor Costs)
Group in Japan.

*This description focuses on the activities of theDuring FY2011, the main investments were contributions in response to the Great East Japan Earthquake and major flooding in Thailand.
During FY2014, quick chargers for electric vehicles that had not been installed yet were installed at Calsonic Kansei’s business locations.
With this investment, the installation of quick chargers for electric vehicles at all of Calsonic Kansei’s business locations was completed.
Unit: thousand yen
FY2011FY2012FY2013

FY2014

Total social contribution investment amount

30,497

5,175

33,87420,935

Donations excluding general sponsorship

28,578

1,566

1,797

2,434

30,2184,896

33,435

20,545

1,640

3,330

31,63918,111

Contribution expenses excluding generalsponsorship
Contribution expenses excluding generalsponsorship and donations

68

Data - CSR Materiality and KPI Results

Category

CSR issues

KPI

Target

FY2013 results

FY2014 results

Number of independent outside directors

―

0

0

Number of outside auditors

―

2

2

Strengthening governance
Organizational
governance

Sales volume

FY2016 1 trillion yen

918.7 billion yen

965.6 billion yen

Value added operating income margin

FY2016 Approximately 7％

5.00%

5.40%

Rate of disabled person employment

At least 2%

1.89%

1.85

Improvement of profits

Respecting diversity

Rate of female managers

―

1.74

2.2

Number of non-Japanese employees

―

53

53

Human rights
Supporting issues in developing
countries

Supply chain due diligenceContributions to social structure
improvements

Number of conflict minerals survey
companies―

224 companies

288 companies

Rate of female employees

―

7.74%

7.62%

Average length of continuous employment―

20.3 years

19.6 years

Number of union members

―

3127

2977

Number of new graduate employees

―

53

37

Number of re-employed employees

―

65

58

Usage rate of paid leave

―

55.1%

64.3%

Number of employees taking time off fromwork for child care

―

9

10

Number of employees obtaining child care
leave

―

14

15

1

2

0.05

0.06

10 products (cumulative) from FY2011 to FY2016

2 products(cumulative)

7 products (cumulative)

Rate of reduction of CO2 emissions fromproduction

17.6% decrease in FY2016 compared to FY2005

35.2% decrease

28.3% decrease

Rate of reduction of CO2 emissions fromlogistics

22% decrease in FY2016 compared to FY2010

23.4% decrease

23.1% decrease

Rate of reduction of CO2 emissions fromoffices

6% decrease in FY2016 compared to FY2010

3.5% decrease

6.5% decrease

Rate of emissions reduction

28% decrease in FY2016 compared to FY2005

34.9% decrease

26.5% decrease

Rate of water consumption reduction

21.4% decrease in FY2016 compared to FY2009

15.5% decrease

4.6% decrease

Rate of PRTR reduction

6% decrease in FY2016 compared to FY2010

7% decrease

1.3% decrease

Rate of landfill disposal

0% in FY2015

15%

2.90%

Green procurement

100% acquisition of consent form at the time of
new account opening

100% collection

100% collection

Number of serious violations

0

0

0

―

(Implementation scheduled from FY2015)―

Work environment

Labor practices(Calsonic Kansei nonconsolidated)
Improvement of working styles

Number of employees taking time off fromwork for nursing care
Work health and safety

Frequency rate of accidents requiring time
off from work0

Number of eco-products created(FY11~FY16)
Response to climate change

Environment

Prevention of environmental
disruption

Purchase management

Fair businesspractices

Thoroughly ensuring compliance

Consumer issues

Customer issues

Community
Participation andDevelopment

Social contribution activities

Number of compliance awards

―

127

265

Number of whistleblowing reports

234

―

48

Rate of information security training
participants―

100% (Japan)

Level of customer satisfaction

―

3.26

3.31

Total expenses for social contribution
activities―

33,874 thousandyen

20,935 thousand yen―

On-site lessons at
13 schools

On-site lessons at 14
schools

Activities to support children who will leadthe future― (overseas)

100% (Japan)
89% (overseas)

69

Data - History of Calsonic Kansei
Calsonic

KanseiNihon Radiator Manufacturing Co., Ltd. established.

1938

Renamed Nihon Radiator Co., Ltd.

1952

Listed on Tokyo Stock Exchange, 2nd section.

1962

Los Angeles Office established in the US

1972

Listed on Tokyo Stock Exchange, 1st section.

1973

Calsonic Inc. established(former Calsonic North America Inc. California plant).

1976

1956

Kanto Seiki Co., Ltd. established.

1960

Headquarters and plant relocated to Omiya
City, Saitama Pref.

1978

Listed on Tokyo Stock Exchange, 2nd section.

1984

Kantus Corporation established(currently Calsonic Kansei North
America’s Lewisburg Plant).

1990

Listed on Tokyo Stock Exchange, 1st section.

1991

Renamed Kansei Corporation.

1986
TI NIHON U.K established(currently Calsonic Kansei UK Limited, Washington Plant).

Renamed Calsonic Corporation.

1988

Climatizadores Calsonix S.A. established(currently Calsonic Kansei Spain, S.A.).
Daihan Calsonic Corporation established.

1991

Calsonic Mexicana, S.A. de C.V. established(currently Calsonic Kansei Mexicana, S.A. de C.V.).

1997

Kantus Mexicana, S.A. de C.V. established.
(currently Calsonic Kansei Mexicana, S.A. de C.V.).

1998

Calsonic Kansei Corporation
2000
established through merger of
Calsonic Corporation and Kansei Calsonic Kansei Corporation
Corporation.
Calsonic Kansei (Wuxi) Corporation established.

2001

Kansei UK Limited established(currently Calsonic Kansei Sunderland Limited).

Calsonic Kansei (Thailand) Co., Ltd. established.
Calsonic SII Compressors Sdn.Bhd (currently CalsonicKansei (Malaysia) Sdn. Bhd.) established.

2002
2005

Calsonic Kansei Romania S.R.L. established.

2006

R&D Center, Headquarters moved in Saitama city.

2008

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

2007

Calsonic Kansei Motherson Auto Products Limited
established in India.

2012

Calsonic Kansei do Brasil Industria e Comercio Ltda.
established. Calsonic Kansei RUS LLC.established.

70

Data - Financial Report
Summary of Financial Statements for the Fiscal Year Ended March 31, 2015 [Japanese GAAP](Consolidated)
Consolidated Statements of Income
(A)

(B)

(Unit: 100 million yen)

FY2013 results

FY2014 results

Changes(B)-(A)

9,187

9,656

469
5.1%

Operating income(Operating income margin %)

288
3.1%

316
3.3%

28
0.2%

Ordinary income(Ordinary income margin %)

295
3.2%

283
2.9%

(12)
(0.3%)Net income(Net income margin %)

250
2.7%

201
2.1%

(49)
(0.6%)

93.36 yen

75.05 yen

(18.31)

3,871

3,520

(351)

2,956

3,602

646

1,047

1,231

184

1,953

1,955

2

Subtotal

9,828

10,308480

Consolidation adjustments

(641)

(652)

(11)

Total

9,187

9,656

469

Companies in Japan
Subsidiaries in theAmericas

108

63

(45)

86

127

41

Subsidiaries in Europe

(4)

6

10

Subsidiaries in Asia

Sales

Net income per share
Breakdown of sales
Companies in Japan
Subsidiaries in theAmericas
Subsidiaries in Europe
Subsidiaries in Asia

Breakdown of operating income

104

123

19

Subtotal

294

318

24

Consolidation adjustments

(6)

(2)

4

Total

288

316

28

Capital investment

292

243

(49)

Depreciation

227

232

5

R&D expenditures

271

277

6

Exchange rate (USD)

100.17109.76

10

Total assets

4,278

4,598

320

Net assets(Equity ratio %)

1,782
38.6%

2,122
43.3%

340
4.7%

616.59 yen

743.97 yen

127

75

(189)

(264)

Net assets per share
Interest-bearing debt at the endof the period

71

Data - Financial Report
Consolidated Balance Sheets
14.3.3115.3.31

Changes

14.3.3115.3.31

Changes

a

b

b-a

c

d

d-c

2,676

2,934

258 Current liabilities

2,222

2,181

(41)

Cash on hand andin banks

181

311

130

Trade payables

1,454

1,424

(30)

Trade receivables

1,637

1,648

11

Current portion of bonds and loans
payable

278

231

(47)

Inventories

448

486

38

Others

490

526

36

Others410

489

79 Long-term liabilities

273

295

22

33

30

3

Current assets

Current portion of bonds and loans
payableProvisions for retirement

-

-

-

Liabilities relating to retirement
benefits

127

136

9

Others

114

129

15

2,495

2,476

(19)

Long-term assets

1,602

1,665

63 Total liabilities

Property, plant andequipment

1,400

1,431

31

Capital

415

415

0

Intangible fixed
assets51

63

12

Capital surplus

596

596

0

Investment securities

101

118

17

Retained earnings

803

1,004

201

Deferred tax assets

45

47

2

Treasury stock

(37)

(38)

(1)

Others6

60 Total shareholders’ equity

1,776

1,977

201

Cumulative adjustments for
retirement benefits

(109)

(129)

(20)

Valuation and translation
adjustments(15)

Minority interests

130

129

(1)

Total net assets

1,782

2,123

341

4,278

4,598

320

Total assets

4,278

4,598

320 Total net assets and liabilities

1572

Data - Environmental Performance Data
Calsonic Kansei Corporation
Gunma Plant

OppamaPlant

Address: 132 Shin-Nakano,
Ouracho, Ouragun, Gunma
Area: 224,781㎡
Building area : 64,352㎡
Major products :Air-conditioning
units, condensers,
exhaust products,
metal supports
Ordinance andAgreement

AddressArea: 22,514㎡
Building area : 17,434㎡
Major products : exhaust products
Ordinance andAgreement

Gunma Prefectural Ordinance, Oura Town
Agreement, Sewage Law
Results

Items Regarding Waste
Water Regulations

Regulation value

pH

Minimum

Maximum

6.5~8.5

7.1

7.9

SS

30mg/l and less

4.7

23.6

BOD

20mg/l and less

3.2

7.7

N-Hex

3 mg/l and less

0.8

1.7

Fluorine

8 mg/l and less

0.5 and less

0.5

Zinc

2 mg/l and less

0.1 and less

0.2

Phosphorus

16 mg/l and less

0.1 and less

0.3

Nitrogen

120 mg/l and lessCopper

3 mg/l and less

0.5

2.5
0.1 and lessNickel

-

-

-

Iron

5 mg/l and less

0.1 and less

0.1

COD

-

-

-

Colon bacillus

3,000 and less

1077Dichloromethane

0.2 mg/l and less

Kanagawa Prefectural Ordinance, Yokosuka Municipal Ordinance, Sewage Law
Results

Items Regarding Waste
Water Regulations

Regulation valuepH

5.8~8.6

SS

300mg/l and less

BOD

300mg/l and less

N-Hex

5 mg/l and less

Minimum

Maximum

7.6

8.1
1.0 and less

1.0 and less

1.4
0.5 and less

Fluorine

-

-

-

Zinc

1.0 mg/l and less

0.1 and less

0.5

Phosphorus

6.25 mg/l and lessNitrogen

50 mg/l and lessCopper

1.0 mg/l and lessNickel

1.0 mg/l and less

0.1 and less

0.1

Iron

3 mg/l and less

0.1 and less

0.3

COD

-

-

-

Colon bacillus

-

-

-

Dichloromethane

-

-

-

0.1 and less
1.7

1.9
0.1 and lessTotal volume of water
discharge

0.02 and lessTotal volume of water
discharge

183 (km3)

Drain field: 18 Natsushimacho, Yokosuka
City, Kanagawa

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

BOD average

4.6 (mg/l)

Amount of pollution load
(BOD)

0.8 (t)

Sox

―

Nox

―

Soot dustCO2―16,947 (t)7.5 (km3)

Drain field

Sewage

BOD average

1.1 (mg/l)

Amount of pollution load
(BOD)

0.008 (t)

Sox

―

Nox

0.091 (t)Soot dust

0.018 (t)CO21,213 (t)Calsonic Kansei Corporation
YoshimiPlant
Address

KodamaPlant: 628 OoazaKumeda,Yoshi
mimachi, Hikigun Saitama

AddressArea: 141,784㎡
Building area : 49,700㎡
Major products : instrument
panels, center
consolesOrdinance and AgreementArea: 51,168㎡
Building area : 15,838㎡
Major products : electronic
control units

Saitama Prefectural
Ordinance
Results

Items Regarding Waste
Water Regulations

Regulation valuepH: 540-7 kyoei,
Kodamacho,
Honjo City,
SaitamaOrdinance and Agreement

Saitama Prefectural
Ordinance

Items Regarding Waste
Water Regulations

Regulation value

Results
Minimum

Maximum

Minimum

Maximum

5.8~8.6

6.6

7.5

pH

5.8~8.6

7.0

7.6

SS

90mg/l and less

2.0

9.6

SS

60mg/l and less

5.0

16.0

BOD

25mg/l and less

1.0

15.2

BOD

25mg/l and less

2.0

N-Hex

5 mg/l and less

0.5 and less

0.5

N-Hex

30 mg/l and less
-

-

-

18.0
3.0 and less

Fluorine---

Fluorine

Zinc

-

-

-

Zinc

-

-

-

Phosphorus

8 mg/l and less

2.2

6.9

Phosphorus

-

-

-

Nitrogen60 mg/l and less

4.7

28.6

Nitrogen---

Copper---Copper---Nickel---Nickel

-

-

-

Iron

-

-

-

Iron

-

-

-

COD

60 mg/l and less

5.8

14.6

COD

160 mg/l and less

3.0

24.0

Colon bacillus

3,000 and less

0300

Colon bacillus

3,000 and lessDichloromethane

-

-

-

Dichloromethane-

Total volume of water
discharge
Drain field
BOD averageAmount of pollution load
(BOD)
Sox

33.2 (km3)
Discharged into a river (subsidiary stream of the Ichino River)3.4 (mg/l)

Total volume of water
discharge
Drain field
BOD average

30 and less-

8.2 (Kｍ 3)

Discharged into a river (subsidiary stream of the Tone River)4.4 (mg/l)

0.1 (t)Amount of pollution load
(BOD)

0.04 (t)―Sox

0.11 (t)Nox0.587 (t)Nox0.461 (t)Soot dust

0.006 (t)Soot dust

0.004 (t)CO25,426 (t)CO22,609 (t)73

Data - Environmental Performance Data
Calsonic Kansei Corporation
Experiment Study
CenterR&D Center and Headquarters

Address: 8 Sakae-cho,
Sano City,
TochigiArea: 73,829㎡
Building area : 47,141㎡

Ordinance and Agreement

pH

Area

: 33,047㎡

Building area

: 10,704㎡

Results

Items Regarding Waste
Water Regulations

Regulation value

8.4

pH

5.0~9.0

6.7

7.2

193.0

SS

600mg/l and less

145.0

486.0

Results
Regulation value: 2-1917 Nisshincho, Kitaku,
Saitama City,
SaitamaOrdinance and Agreement Saitama Prefectural Ordinance, Saitama Municipal Ordinance, Sewage Law

Tochigi Prefectural Ordinance, Sano Municipal Ordinance, Sewage Law

Items Regarding Waste
Water Regulations

Address

Minimum

Maximum

5.0~9.0

6.5SS

600mg/l and less

1.0 and less
1.0 and less

Minimum

Maximum

BOD

600mg/l and less

60.1

360.0

N-Hex

5 mg/l and less

2.8

27.7

-

Fluorine

-

-

-

-

-

Zinc

-

-

-

-

-

-

Phosphorus

-

2.4

6.1

Nitrogen---

Nitrogen

-

7.3

26.3

Copper---Copper---Nickel---Nickel

-

-

-

Iron

-

-

-

Iron

-

-

-

COD

-

-

-

COD

-

-

-

Colon bacillus

-

-

-

Colon bacillus

-

-

-

Dichloromethane

-

-

-

Dichloromethane

-

-

-

BOD

600mg/l and less

N-Hex

5 mg/l and less

Fluorine

-

-

Zinc

-

Phosphorus

162.0
1.0 and lessTotal volume of water
discharge

47.5 (km3)

Drain field

Sewage, Misugi River

BOD average

28.6 (mg/l)

Amount of pollution load
(BOD)1.36 (t)

Sox

―

Nox

―

Soot dust―

CO2

Total volume of water
discharge

24.6 (Km3)
SewageDrain field

179.5 (mg/l)

BOD averageAmount of pollution load
(BOD)

4.4 (t)Sox

0.000 (t)Nox0.14 (t)Soot dust

0.000 (t)CO22,087 (t)6,502 (t)Domestic Affiliated Companies
CKK (Headquarters and Usa Plant)

CKK (Nakatsu Plant)

Address

Address: 111 OoazaWaki, Usa
City, Ooita

Area: 48,646㎡
Building area : 17,803㎡
Major products : air conditioning
units, radiators,
exhaust productsArea: 99,146㎡
Building area
: 19,427㎡
Major products : instrument
panelsOrdinance andAgreement: 150-3 OazaInumaru, Nakatsucity, Oita

Ordinance andAgreement

Ooita Prefectural Ordinance, Usa Municipal
Agreement
Results
Minimum

Maximum

Items Regarding Waste
Water Regulations

6.0~8.6

7.3

7.9

pH

SS

60mg/l and less

1.0

19.0

BOD

60mg/l and less

1.0 and less

2.0

Items Regarding Waste
Water Regulations

Regulation value

pH

N-Hex

2 mg/l and less

Fluorine--

1.0 and less
-

Zinc

-

-

-

Phosphorus

-

-

-

Nitrogen---

Copper---Nickel

-

-

-

Iron

-

-

-

COD

60 mg/1 and less

3.0

6.0

Colon bacillus

-

-

-

Dichloromethane

-

-

-

Total volume of water
discharge
Drain field

4.2 (km3)
Discharged into a river (Yorimo River)

Oita Prefectural regulations, Nakatsu City
agreements
Results
Regulation value

Minimum

Maximum

6.0~8.5

6.6

7.2

SS

30mg/l and less

1.0 and less

6.0

BOD

30mg/l and less

0.66

11.0

N-Hex

5 mg/l and less

0.5 and less

0.78

Fluorine

-

-

-

Zinc

-

-

-

Phosphorus

8 mg/l and less

0.24

3.2

Nitrogen60 mg/l and less

4.8

23.0

Copper---Nickel

-

-

-

Iron

-

-

COD

-

-

-

Colon bacillus

3,000 and less0

14 and lessDichloromethane

-

-

-

Total volume of water
discharge
Drain field-(Living water-purification tanks only) 7 (Km3)
Discharged into a river (Inumaru River)

BOD average

1.1 (mg/l)

Amount of pollution load
(BOD)

0.005 (t)Amount of pollution load
(BOD)

0.03 (t)Sox

0.538 (t)Sox

0.264 (t)BOD average

4.6 (mg/l)

Nox1.01 (t)Nox0.665 (t)Soot dust

0.036 (t)CO25,543 (t)Soot dust
CO2

0.146 (t)8,228 (t)74

Data - Environmental Performance Data
Domestic Affiliated Companies
CKF (Headquarters and Nihonmatsu Plant)

Tokyo Radiator MFG.Co.,Ltd.

Address: 5-1 Sumiyoshi,
Nihonmatsu,
Fukushima

Address: 2002-1 Endo,
Fujisawa City,
Kanagawa

Area: 68,400㎡

Area: 88,254㎡

Building area : 41,004㎡
Major products : radiators, EGR

Building area : 13,800㎡
Major products : meters, tankunits, a variety
of sensors,
switches

coolers, oil coolers,intercoolers, fuelcoolers, oil pans,vacuum tanks, fueltanks, SCR tanks, etc.

Ordinance and Agreement Fukushima Prefectural Ordinance, Nihonmatsu Municipal OrdinanceItems Regarding Waste
Water Regulations

Regulation value

Ordinance andAgreement

Results
Minimum

Maximum

Kanagawa Prefectural Ordinance, Fujisawa Municipal
Greening Agreement
Results

pH

5.8~8.6

7.0

7.5

Items Regarding Waste
Water Regulations

Regulation value

Minimum

MaximumSS

70mg/l and less

1.0 and less

22.0

pH

5.8~8.6

7.1

7.6

BOD

25mg/l and less

1.0 and less

2.9

N-Hex

5 mg/l and less

Fluorine--SS

90mg/l and less

1.0 and less

4.8

BOD

60mg/l and less

3.9

8.9

-

N-Hex

5 mg/l and less

0.5 and less

2.4

0.4

0.5 and less

Zinc

-

-

-

Fluorine

8 mg/l and less

Phosphorus

-

-

-

Zinc

2 mg/l and lessNitrogen---Phosphorus

-

-

-

Copper---Nitrogen---

Nickel---Copper

-

-

-

Iron

-

-

-

Nickel

-

-

COD

-

-

-

Iron

-

-

-

Colon bacillus

3,000 and less

COD

60 mg/l and less

7.5

14.2

Dichloromethane-

Colon bacillus

-

-

-

Dichloromethane

-

-

-

0
-

-

Total volume of water
discharge

15.1 (Km3)

Drain field

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

BOD average

1.2 (mg/l)

Amount of pollution load
(BOD)

0.02 (t)Sox

No sulfur content due to the use of LPG

Nox

0.111 (t)Soot dust
CO2

2.0
0.1 and less-Total volume of water
discharge

237.4 (Kｍ 3）

Drain field

Discharged into a river (Isshiki River)

BOD average

6.1 (mg/l)

Amount of pollution load
(BOD)1.45 (t)Sox

No sulfur content due to the use of town gas

0.018 (t)Nox0.312 (t)3,734 (t)Soot dust

0.00 (t)CO211,722 (t)Domestic Affiliated Companies
CKP (Sano Plant)

CKP (Itakura Plant)

Address: 765 Ishihara,
Takahagi-cho,
Sano-city,
Tochigi

Address: 7 Futoiaza,OokuraOoaza, Itakuramachi, Ora-gun,
Gunma

Area

: 12,012㎡

Area: 16,500 m²

Building area : 5,670㎡
Major products : Resin molded
parts, intake,motor fans, liquidtanks, relief
valvesOrdinance and Agreement

Building area : 4,161 m²
Major products : control switch
for heater air
conditioner,
controls,
electronic baseTochigi Prefecture Ordinance, Sano City OrdinanceItems Regarding Waste
Water Regulations

Regulation value

ResultspH

5.0~9.0

7.2

SS

600mg/l and less

1.0 and less

Ordinance andAgreement

Gunma Prefectural Ordinance, Itakura Town
Agreement
Regulation value
5.8~8.6

7.2
4.0

BOD

600mg/l and less

1.1

pH

N-Hex

5 mg/l and less

1.0 and lessSS

15mg/l and less

Fluorine

-

-

-

Zinc

-

-

-

Phosphorus

-

-

-

Nitrogen---

Copper---Nickel

-

-

-

Iron

-

-

-

COD

-

-

-

Colon bacillus

-

-

-

Dichloromethane

-

-

-

Total volume of water
discharge
Drain field

8.6 (Kｍ 3)
Discharged into a river (subsidiary stream of the Misugi River)

BOD average

1.1 (mg/l)

Amount of pollution load
(BOD)

0.009 (t)Results

Items Regarding Waste
Water Regulations

Minimum

Maximum

BOD

15mg/l and less

N-Hex

3 mg/l and less

Fluorine

-

-

9.0
-

1.0 and less

Zinc

-

-

-

Phosphorus

-

-

-

Nitrogen---

Copper---Nickel

-

-

-

Iron
COD
Colon bacillus

1,000 and less-Dichloromethane--

Total volume of water
discharge
Drain field

30 and less5.7 (Km3)

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

BOD average

9 (mg/l)Sox―

Amount of pollution load
(BOD)

0.05 (t)

Nox

―

Sox

―

Nox

―

Soot dustCO2―2,429 (t)Soot dust―CO2

1,619 (t)75

Data - Environmental Performance Data
Domestic Affiliated Companies
Calsonic Kansei
Utsunomiya (CKU)

CKP (Tochigi Plant)
Address: 144-1
Shimokoyama,
Shimotsuke City,
TochigiArea: 18,886 m²
Building area : 10,497 m²
Major products: car interior
resin parts,
instrument
panels,consoles, etc.
Ordinance andAgreement
Items Regarding
Waste Water
Regulations

Address: 11-6 Kiyohara
Industrial Park,
Utsunomiya
City, Tochigi
Area: 66,100 ㎡
Buildings: 20,864 ㎡
Major products: compressors for
car airconditioners,
parts
Ordinance andAgreement

Tochigi Prefectural Ordinance, City agreement underItems Regarding Waste
Water Regulations

Results
Regulation valuepH

5.8~8.6

SS

50mg/l and less

BOD

30mg/l and less

Minimum

Maximum

6.9

7.2

MaximumpH

5.8~8.6

6.8

SS

40mg/l and less

1.0 and less

1.2

1.3

BOD

20mg/l and less

1.2

11.7

N-Hex

5 mg/l and less

0.5

0.8

Fluorine
Zinc
Phosphorus
Nitrogen
CopperNickel
Iron

-

-

-

1.0 and less
1.0 and lessTochigi Prefectural Ordinance, Utsunomiya Municipal
Agreement
Results
Regulation value
Minimum

0.5 and less

8.1

N-Hex

5 mg/l and less

Fluorine
Zinc
Phosphorus
Nitrogen
Copper---Nickel

-

-

-

Iron

-

-

-

COD

30mg/l and less

3.1

3.4

COD

20 mg/l and less

1.6

15.6

Colon bacillus

-

-

-

Colon bacillus

-

-

-

Dichloromethane

-

-

-

Dichloromethane

-

-

-

Total volume of water
discharge
Drain field

5.8 (Km3)
Discharged into a river (Sugata River)

BOD averageAmount of pollution
load (BOD)

0.007 (t)

Sox
Nox

―
―

Soot dustCO2―2,199 (t)Total volume of water
discharge
Drain field

2.1 (Km3)
Via the Kiyohara Industrial Park Disposal Plant to the Kinu River

BOD average

4.3 (mg/l)

Amount of pollution load
(BOD)

0.009 (t)Sox
Nox
Soot dust
CO2

―
―
―
1,493 (t)Domestic Affiliated Companies
Calsonic Kansei Iwate (CKI)

Calsonic Kansei Yamagata (CKY)

Address

Address: 1-27-5
Tatekawame,
Wagacho,
Kitakami City,
Iwate
Area
: 23,410 ㎡
Buildings: 9,742 ㎡
Major products : compressors
for car airconditioners
Ordinance andAgreement: 190 Chuo
Industrial Park,
Sagae City,
Yamagata
Area: 10,616㎡
Building area : 5,077㎡
Major products : aluminum die
casting, parts
processing

Ordinance and Agreement
Iwate Prefectural Ordinance, Kitakami Municipal Agreement

Items Regarding Waste
Water Regulations

Regulation valuepH

5.8~8.6

Results
Minimum

Maximum

6.6

7.4

SS

200mg/1 and less

1.5

BOD

160mg/1 and less

0.9

N-Hex

5 mg/1 and less

Fluorine

8 mg/1 and less

7.7

0.17

Zinc

2 mg/1 and less

0.056

0.06

Phosphorus

16 mg/1 and less

2.4

3.0

Nitrogen

120 mg/1 and less

18.0

32.0

Copper

3 mg/1 and less

0.009

0.012

Nickel

-

-

-

Iron

10 mg/1 and less

0.04

Results
Regulation valuepH

5.8~8.6

6.7

7.3

SS

200mg/1 and less

4.8

29.2

Minimum

Maximum

12.0

0.5
0.07

Yamagata Prefectural OrdinanceItems Regarding Waste
Water Regulations

0.06

BOD

160mg/1 and less

2.6

8.5

N-Hex

5 mg/1 and less

0.5 and less

0.7

Fluorine

-

-

-

Zinc

-

-

-

Phosphorus

-

-

-

Nitrogen---

Copper---Nickel

-

-

-

Iron

-

-

-

COD

-

-

-

Colon bacillus

-

-

-

-

-

-

COD

160 mg/1 and less

7.9

22.0

Dichloromethane

Colon bacillus

3,000 and less

30

800

Total volume of water
discharge

Dichloromethane

-

-

-

Drain field

Sagae River

BOD average

4.7 (mg/l)

Amount of pollution load
(BOD)

0.07 (t)Total volume of water
discharge
Drain field
BOD average

5.9 (Km3)
Discharged into a river (Waga River)15(Km3)3.8 (mg/l)
Sox

Amount of pollution load
(BOD)

0.02 (t)

Sox

―

Nox

―

Soot dust―CO22,937 (t)NoxSoot dust
CO2

―
―
―
3,299 (t)76Data - CSR Guidelines for Suppliers<Contents>
1. Highlights of CSR Guidelines for Suppliers
2. CSR Guidelines for SuppliersA) Overview and Use of GuidelinesB) CSR Areas and Items
i. Safety and Quality
ii. Human Rights and Laboriii. Environment
iv. Compliancev. Information Disclosure
3. To Our Suppliers

1. Highlights of CSR Guidelines for Suppliers
1. Safety and Quality• Providing products and services that meet
Customer needs• Providing products and services• Ensuring quality of products and services
2. Human Rights and Labor• Prohibiting discrimination• Respecting human rights• Prohibiting child labor• Prohibiting forced labor• Complying with the laws for wages• Complying with the laws for working hours• Practicing dialogue and discussion with employees• Ensuring a safe and healthy working environment

3. Environment• Implementing environmental management• Reducing greenhouse gas emissions• Preventing air, water, and soil pollution• Saving resources and reducing waste• Managing chemical substances• Conservation of ecosystem

4. Compliance• Complying with laws, in particular, competition
laws and export laws
• Preventing corruption• Managing confidential information• Protecting intellectual property

5.Information Disclosure• Disclosing information to stakeholders

2. CSR Guidelines for SuppliersA) Overview and Use of Guidelines
These Guidelines outline common items by aiming at encouraging our suppliers to review their corporate activities
from the perspective of CSR and to take clear actions to further improve. We have selected 24 specific items in fiveareas in which expectations of suppliers are especially high in the automobile industry.
B) CSR Areas and Items
i. Safety and Quality• Providing products and services that meet Customer needs
Identify customer needs to develop and provide socially effective products. It means in particular products that canbe easily used by all of our customers regardless of age, gender or physical / mental handicap or products that saveenergy and resources or limit their impact on the environment.
• Ensuring safety of products and services
Produce and provide products and services that meet the safety laws and regulations set by each country andregion.
• Ensuring quality of products and services
Establish and manage company-wide mechanisms for quality assurance.
77

Data - CSR Guidelines for Suppliers
ⅱ. Human Rights and Labor• Discrimination
Do not discriminate in any aspect of employment (recruitment, employment, promotion, wages, dismissal,
retirement, assignment of duties, disciplinary measures, etc.) on the basis of race, nationality, gender, religion,
physical / mental handicap, age, background, or any other reason.
• Respecting human rights
Do not allow any form of harassment in the workplace on the basis of race, nationality, gender, physical / mental
handicap, age, background, or any other reason.
• Prohibiting child labor
Do not permit the employment of minors who do not meet the legal minimum working age of each country andregion and in all cases if minors are below the age of 15.
• Prohibiting forced labor
Do not practice forced labor. Guarantee that all labor is voluntary and that employees are free to leave their jobs.
• WageComply with the laws of each country and region regarding minimum wages, overtime, wage deductions,performance-based pay, and other remuneration.
• Working hours
Comply with the laws of each country and regarding the setting of employees’ working hours (including overtime)
and the granting of scheduled days off, paid annual vacation time and others.
• Practicing dialogue and discussion with employees
Practice dialogue and discussion with employees or their representatives in good faith.
Recognize employees’ right to freely associate or not associate based on the laws of each country and region
where the business operations are executed.
• Safe and healthy working environment
Make the safety and health of workers in their operation the top priority and make every effort to prevent
occupational accidents.
• Calsonic Kansei Standard
For detailed standards, please refer to:
Calsonic Kansei Global Codes of Conductiii. Environment• Environmental management
Strive to anticipate future changes in laws while complying with the laws in each county or region in order topromote a wide range of environmental activities. Structure and continuously operate / improve companywide
management scheme. Record and report to Calsonic Kansei when the information is required.
• Reducing greenhouse gas emissions.
Strive to anticipate future changes in laws while complying with the laws in each county or region. Manage
greenhouse gas emissions from business activities and promote reduction activities. Strive to use energy
effectively. Record and report to Calsonic Kansei when the data is required.
• Preventing air, water and soil pollution
Strive to anticipate future changes while complying with the laws in each country or region regarding the preventionof air, water and soil pollution. Prevent pollution by undertaking continuous monitoring and reducing pollutants.
Record and report to Calsonic Kansei when the data is required.
• Saving resources and reducing waste
Comply with the laws in each country or region regarding proper disposal and recycling of waste. Strive to reducewater consumption as well as the amount of final waste disposal by using resources effectively. Record and report
to Calsonic Kansei when the data is required.
78

Data - CSR Guidelines for Suppliers• Managing chemical substances
Strive to anticipate future changes while complying with the laws in each country or region.
Specify and safely manage chemical substances that have the potential to pollute the environment.
Do not include chemical substances prohibited by the laws of each country and region in products.
Do not use prohibited chemical substances in manufacturing processes. Confirm the amount of emissions ofchemical substance designated by the laws of each country and region to report to the relevant authorities.
Record and report to Calsonic Kansei when the data is required.
• Conserving ecosystems
Strive to conserve ecosystems regarding parts production including corporate activities and material procurement.

• Calsonic Kansei Environment Standards
For detailed standards, please refer to:
Calsonic Kansei Green Purchasing Guideline
iv. Compliance• Compliance with the laws
Comply with the laws in each country or region.
Establish and operate policies, systems, codes of conduct, reporting systems, educational, and other mechanisms
to ensure compliance.
• Compliance with the competition laws
Comply with competition laws in each country and region. Do not engage in such practices as private monopolies,
improper restraint of trade (cartels, bid rigging, etc.), unfair business practices or abuse of dominant position.
• Preventing corruption
Make political contributions and donations based on the laws of each country and region and strive to establish
transparent and fair relations with your suppliers. Do not accept from or provide to business partners any
entertainment, gifts or money whose aim is to gain or retain improper benefit or preferential treatment.
• Managing and protecting confidential information.
Obtain personal information about customers, third parties, and your employees and confidential information on
customers and third parties through proper methods. Strictly manage this information and use it only within theappropriate scope of protection.

• Managing exports
Undertake appropriate procedures and management of exports of technologies and goods restricted by the laws
and regulations of each country and region.
• Protecting intellectual property
Protect intellectual property rights owned by or affiliated with your own company. Do not improperly obtain, use theintellectual property of third parties, or infringe the rights.
v. Information Disclosure• Disclosing information to stakeholders
Disclose information such as financial situation, results and business activities to stakeholders in a timely andappropriate manner. Strive to maintain and develop mutual understanding and reliable relationships withstakeholders through open and fair communication.

79

Data - CSR Guidelines for Suppliers
3. To Our Supplier
As described in the previous clauses, due to considerations for the recent increasing demand in society to comply
with laws/regulations and conventional wisdom and principles, and the situation in which CSR activities have alreadybeen implemented to suppliers, Calsonic Kansei requires suppliers to comply with these guidelines.
Calsonic Kansei has also explained the measures to be taken if suppliers’ activities do not meet the CSR guidelines.
Calsonic Kansei requests suppliers to understand the following:
1. Calsonic Kansei requests suppliers to comply with all of laws/regulations, including those which are included in
the 2th B) iv clause of this guideline, “Compliance”,
and promote to comply with laws/regulations to your supply chain and outsourcing companies.
Meanwhile, if efforts or activities in Calsonic Kansei do not conform to the guidelines, Calsonic Kansei requests toimmediately report the details through main responsible manager in Purchasing.。

2. In order to ensure 1, Calsonic requests suppliers to establish and operate their own internal CSR organization andsystem.
3. If a supplier’s activities violate this compliance, Calsonic Kansei requests the supplier to immediately report thedetail and submit the investigation result / countermeasures to Calsonic Kansei.
Calsonic Kansei may stop any new RFQs until the measures are concluded as appropriate.
Calsonic Kansei included this CSR policy to Master Purchasing Agreement (MPA) or other agreement.
For suppliers that already have a current MPA with Calsonic Kansei, the MPA will remain as it is, however
Calsonic Kansei does request that suppliers completely execute on points 1~3.

80

Data - GRI Guidelines Comparison Table
NA: not applicable, Omit: omitted from report, TBD: challenges
Disclosure contents

Guide NO.

Applicablepage

Common standard disclosure items
Strategy and analysis
Provide a statement from the most senior decision-maker of the organization

G4-1

3

Name of organization

G4-3

14

Main brands and products

G4-4

14

Headquarters address

G4-5

14

Countries of key business locations

G4-6

14

Legal form of the organization

G4-7

14

Markets participated in (geographical breakdown, sectors participated in, and types ofcustomers and beneficiaries)

G4-8

14

Scale of organization

G4-9

14

Breakdown of employees

G4-10

15

Ratio of all employees covered by collective bargaining agreements

G4-11

Omit

Organization supply chain

G4-12

62

Major changes to the organization during the reporting period

G4-13

Omit

Organization’s proactive approach and support of precautionary principle

G4-14

30,31,53

Economic, environmental, social charters, principles, and other initiatives that have been signed
or supported by the organization

G4-15

2

Membership qualifications for organizations and international and domestic advocacy
organizations

G4-16

Omit

There are no business entities not stated in the consolidated financial statements or equivalent
documents of an organization among business organizations subject to reporting in consolidated G4-17
financial statements or equivalent documents

16

How principles concerning report contents are applied for the process organization that finalizes
report contents and side boundaries

G4-18

2

Specific material aspects in processes to finalize the contents of reports

G4-19

12

Side boundaries within the organization for each material aspect

G4-20

Omit

Side boundaries outside the organization for each material aspect

G4-21

Omit

In the event of modification or restatement of information in past reports, the impact and thereasonG4-22NA

Major changes from past reporting periods related to the scope and side boundaries

G4-23

NA

List of stakeholders the organization has engaged with

G4-24

Omit

Organization’s standards for the identification and selection of stakeholders to engage with

G4-25

Omit

Organization’s method of approaching stakeholder engagement

G4-26

Omit

Main themes and concerns arising from stakeholder engagement, and how the organization
acted in response

G4-27

Omit

Organization profile

Specific material aspects

Stakeholder engagement81Data - GRI Guidelines Comparison Table
NA: not applicable, Omit: omitted from report, TBD: challenges
Disclosure contents

Guide NO.

Applicablepage

Common standard disclosure items
Report profile
Reporting period for information provided (fiscal year, calendar year, etc.)

G4-28

2

Date of the latest report released (if applicable)

G4-29

2

Reporting cycle (annual, biennial, etc.)

G4-30

2

Contact points for reports and question regarding contents

G4-31

2

Options for standards for conformance selected by the organization

G4-32

2

Organization’s policy towards the external assurance of reports and current practices

G4-33

2

G4-34

27

G4-56

9

G4-DMA

13

Direct economic value created and distributed

G4-EC5

Omit

Financial effect on the organization’s activities caused by climate change, and other risks andopportunities

G4-EC6

Omit

Scope of organization’s obligations in relation to the defined-benefit pension plan

G4-EC5

Omit

Financial assistance received from government

G4-EC6

Omit

Ratio of standard minimum wage (by gender) to regional minimum wage at key business locations G4-EC5

Omit

Ratio of senior management employed from the local community at key business locations

Omit

Governance
Governance structure
Ethics and integrity
Vision, mission, and norms
Specific standard disclosure items
Disclosure items regarding management methods
Medium-term business plan
Economics
Economic performance

Presence in the region

G4-EC6

Indirect economic impact
Impact of infrastructure investment and expansion of support service

G4-EC7

TBD

Significant indirect economic impact (including the degree of impact)

G4-EC8Omit

G4-EC9Omit

Procurement practices
Local supplier expenditure ratio at key business locations
Environment
Water
Total water intake by water source

G4-EN838

Water sources significantly affected by water intake

G4-EN9Omit

Amount and percentage of recycled water and reused water

G4-EN1039

The impact of business locations and products on protected areas and outside protected areas

G4-EN11

Omit

Significant impact caused by business activities or products on areas with high levels of
biodiversity on protected areas and outside protected areas

G4-EN12

Omit

Protected or restored habitat

G4-EN13NA

Biodiversity

82

Data - GRI Guidelines Comparison Table
NA: not applicable, Omit: omitted from report, TBD: challenges
Disclosure contents

Guide NO.

Applicablepage

Specific standard disclosure items
Environment
Biodiversity
Total number of species on the IUCN Red List of Threatened Species or the domestic list ofprotected species that inhabit areas affected by business activities

G4-EN14

Omit

Direct green house gas (GHG) emissions (scope 1)

G4-EN15

38,39

Indirect green house gas (GHG) emissions (scope 2)

G4-EN16

38,39

Other green house gas (GHG) emissions (scope 3)

G4-EN17

TBD

Other green house gas (GHG) emissions per unit

G4-EN18

38

Reductions in green house gas (GHG) emissions

G4-EN1947

Ozone depletion substances (ODS) emissions

G4-EN20

39

NOX, SOX, and other significant air pollution

G4-EN2139

Water quality and total volume of water discharge for each discharge location

G4-EN2275

Gross weight of waste by type and disposal method

G4-EN23

39

Total number of major leaks and leakage quantity

Air pollution

Wastewater and waste

G4-EN24

40,41

Total volume of export, import, and import export handling of hazardous waste specified in Basel
Convention Annex 2 I II, III, and VII, and the ratio of such wastes to internationally exported
G4-EN25
wastes

Omit

Location, scale, protection status, and biodiversity value of water areas and related habitats
significantly affected by the organization’s wastewater and runoff

G4-EN26

Omit

Degree of environmental impact mitigated by products and services

G4-EN27

Omit

Reuse and recycling rate of used products and packing materials (by category)

G4-EN2839,52

G4-EN2945

G4-EN30

Omit

G4-EN3142

Total number and ratio of newly employed employees and resigning employees (breakdown byage, sex, and region)

G4-LA115

Benefits paid to full-time employees that are not paid to temporary employees and part-time
employees (for each major business location)

G4-LA2

Omit

Reinstatement rate and retention rate (by gender) after childbirth and childcare leave

G4-LA3

Omit

Products and services

Compliance
Number of violations of environmental regulations and amounts
Transport and travel
Transport of product and raw materials, environmental impact from the movement of employees
Environment in general
Total expenditures and total investment for environmental protection
Society
Labor practices and decent work
Employment

83

Data - GRI Guidelines Comparison Table
NA: not applicable, Omit: omitted from report, TBD: challenges
Disclosure contents

Guide NO.

Applicablepage

Specific standard disclosure items
Society
Labor practices and decent work
Labor-management relations
Minimum notice period for work-related changes (including whether stipulated in the labor
agreement)

G4-LA4

Omit

Ratio of total workforce that serves as the body that sends a representative to the Health and
Safety Committee that conducts monitoring and provides advice on the health and safety
program

G4-LA5

Omit

Types of injury, number of days off and ratio of absences for injuries or occupational injuries or
diseases, and number of occupation-related deaths (by region and gender)

G4-LA635

Number of workers with high risk of work-related accidents and diseases

G4-LA7

Omit

Health and safety related-themes stipulated in formal agreements with the labor union

G4-LA835

Annual average hours of training per employee (by gender and employee category)

G4-LA9Omit

Support for the continuous employment of employees and employment termination planning
through skills management and lifelong learning programs

G4-LA10

Omit

Ratio of employees receiving regular evaluations of performance and career development (bygender and employee category)

G4-LA11Omit

G4-LA12Omit

G4-LA13

Omit

Ratio of new suppliers screened based on labor practice criteria

G4-LA14

TBD

Measures taken that had a significant negative impact on labor practices in the supply chain(real and potential)

G4-LA15TBD

G4-LA16

Omit

Total number and ratio of important investment agreements and contracts that containprovisions on human rights that have received human rights screening

G4-HR1

Omit

Total number of hours of employee training on work-related human rights policies andprocedures (including the ratio of employees that have received training)

G4-HR2Omit

G4-HR3Omit

G4-HR4Omit

Occupational safety and healthTraining and education

Diversity and equal opportunities
Organization structure and breakdown by employee category (gender, age, minorities)
Equal compensation for men and women
Base salary for women and women’s ratio of the total compensation amount compared to men
Evaluation of the labor practices of suppliers

System for handling complaints concerning labor practices
Number of formal complaints concerning labor practices
Human rights
Investments

Non-discrimination
Number of cases of discrimination and measures in response
Freedom of association and collective bargaining
Work and suppliers that infringes on the freedom of association and collective bargaining

84

Data - GRI Guidelines Comparison Table
NA: not applicable, Omit: omitted from report, TBD: challenges
Disclosure contents

Guide NO.

Applicablepage

Specific standard disclosure items
Society
Human rights
Child labor
Work and suppliers subject to the risk of child labor, and countermeasures in response

G4-HR5NA

G4-HR6NA

G4-HR7Omit

G4-HR8Omit

G4-HR9

TBD

Ratio of new suppliers screened based on human rights criteria

G4-HR10

TBD

Measures taken that had a significant negative impact on human rights in the supply chain (realand potential)

G4-HR11TBD

G4-HR12

Omit

Engagement of businesses with the local community, impact assessment of businesses on thelocal community, ratio of community development programs implemented

G4-SO1Omit

Businesses that have a significant negative impact on the local community (real and potential)

G4-SO2

NA

Total number and ratio of businesses that have conducted risk assessment concerning
corruption and significant risks identified

G4-SO3

Omit

Communication and training concerning corruption prevention policies and procedures

G4-SO453

Confirmed cases of corruption and measures implemented

G4-SO5Omit

G4-SO6Omit

G4-SO7

Omit

G4-SO8NA

Forced labor
Work and suppliers subject to the risk of forced labor, and countermeasures in response
Security practices
Ratio of employees that have participated in training on work-related human rights policies andprocedures
Rights of indigenous people
Number of cases of infringement of the rights of indigenous people
Human rights assessments
Total number of operations subject to human rights reviews and impact assessments
Human rights assessments of suppliers

System for handling complaints concerning human rights
Number of formal human rights complaints and countermeasures
Society
Local community

Corruption prevention

Public policy
Political contributions
Anti-competitive conduct
Total number of legal action cases involving anti-competitive conduct, and countermeasures in
response
Compliance
Penalties for violations of laws and number of punitive measures

85Data - GRI Guidelines Comparison Table
NA: not applicable, Omit: omitted from report, TBD: challenges
Disclosure contents

Guide NO.

Applicable pageSpecific standard disclosure items
SocietySociety
Assessments of impact of suppliers on society
Ratio of new suppliers screened based on criteria for the impact on society

G4-SO9TBD

Measures taken that had a significant negative impact on society in the supply chain (real andpotential)

G4-SO10NA

G4-SO11

Omit

Ratio of major products and services for which a health and safety assessment has been
conducted and improvements have been madeG4-PR1

Omit

Total number of violations of regulations concerning health and safety and voluntary standards
in the product and service life cycle

G4-PR2NA

In the case of organizations stipulating procedures concerning information and labeling for
products and services, the types of information related to products and services for which the
G4-PR3procedures apply and the ratio of main products and services for which information requirements
apply

NA

Total number of violations of regulations and voluntary standards concerning health and safety(by types of results)

G4-PR4NA

Results of customer satisfaction survey

G4-PR5

61

Sales of products for which sales are prohibited and products that are under dispute

G4-PR6NA

Total number of violations of regulations and voluntary standards concerning marketing
communication (including advertisements, promotions, and sponsor activities) (by types ofresults)

G4-PR7NA

G4-PR8NA

G4-PR9NA

System for handling complaints concerning the impact on society
Number of complaints handled
Product liability
Customer health and safety

Labeling of products and services

Marketing communication

Customer privacy
Number of grievances concerning customer privacy data
Compliance
Amount of fines for violations of laws concerning product provision and specifications8614. Third-Party Opinion
Third-party opinion on Calsonic Kansei’s Sustainability Report 2015
NLI Research Institute: Chief Researcher, ESG Research Director
Sustainable Management Forum of Japan Vice Chairman
Masahiko Kawamura
Fields of research and specialization: environmental management, CSR, integrated
reports He completed the masters program from the Faculty of Engineering of Kyushu
University
1976: Joined Mitsui Ocean Development & Engineering Co., Ltd.
1988: Joined NLI Research Institute
Currently:• Coordinator of Network for Sustainability Communication (NSC)• Part-time lecturer at Komazawa University, Seikei University, and Hosei University
Graduate School His publications include the CSR Management Prefect Guide(sole author),
Carbon Disclosure (editor and author),
New Trends in Information Disclosure in Integrated Reports (coauthor), among others

About the CSR Report
Fiscal 2015 is positioned as “The First Year of CSR” for Calsonic Kansei Corporation.
This report was suitable for this positioning. It continues on from the 2014 Sustainability Report that was issued in December oflast year as a preliminary version, and it integrates the former environmental report with the key CSR areas of ESG(environmental, social, and governance). The overall structure is in accordance with the CSR international standard, ISO26000,
and it is also in line with global trends.
However, the contents of the report are mostly focused on domestic activities despite the fact that CK has many overseas
business locations and overseas sales are growing. One of the topics of the interview with top management during the previous
fiscal year was that the stance of first making firm local efforts while giving consideration to the development of systems andreforming awareness towards global CSR seemed reasonable. Nonetheless, one possibility would be to leverage existing global
risk management and compliance frameworks as an underlying base for future expansion while introducing the current state of
CSR at business locations overseas.
I would like to present the following proposal for improvement in order to make CK’s CSR management easier to understand.
1. While the “1. Editorial Policy” states that a new department in charge of CSR in the Corporate Headquarters as “The FirstYear of CSR”, the structural diagram is simply stated in “5. Organizational Governance: Internal Control and Governance”
with no explanation. So, perhaps a description of the CSR implementation system and the responsible officer in “2. Major
Policies” could be added.
2. While of course the contents of environmental report were substantial due to the environmental management track record up
until now, for social aspects (human rights, labor practices, business practices, consumer issues), in addition to thedescription of activities it would also be good to state performance and issues as much as possible.
3. In terms of environmental performance, data for each items and a description and review of activities are described, and we
can see that the PDCA cycle is functioning. However, the single fiscal year and multi-year targets for each item and theboundaries and base years are not uniform, making it difficult to understand. In response to this, perhaps the periods could
be reorganized when developing the CSR Mid-term Action Plan.
4. In relation to the items above, use CK, domestic affiliated companies, North America, Europe, and Asia as the reporting
boundary for all ESG areas. In doing so, it will likely make CSR information gathering and decision-making easier.

About the CSR Activities
In this report, the CSR structure including CSR principles and policies are carefully explained in “2. Major Policies”, in the same manner as
the previous report. In addition, the responsibilities towards each stakeholder are also clear. If I had to suggest an improvement, in
consideration of the ISO26000 definition of CSR as “the responsibility of an organization for the impacts of its decisions and activities onsociety and the environment”, perhaps it would be better to expressively describe the contributions made through business activities to theresolution of social problems, and of course environmental problems from a global perspective.
While cases of CSR-related problems such as collusion, bribery, and human rights and labor issues involving the local subsidiaries orcompanies in the supply chain of Japanese companies have been on the rise, currently CK’s key CSR issues (materiality) seem to beheavily focused on domestic issues. Accordingly, perhaps it would be more practical to separate domestic and overseas issues. I believethat doing so would be more effective in terms of global risk management.
As symbolized by the expression “great company” used in the top message at the beginning of the report, CK aims to be aware ofenvironmental and social issues from a global perspective while improving value for various stakeholders in an aim for the sustainable
development of society and CK. Furthermore, I also feel that the new CSR Mid-term Action Plan that is scheduled to be developed during
the current fiscal year is a wonderful pioneering initiative.
The disclosures on the process for the refined selection of key CSR issues are exemplary, and the related data is stated in “Key CSR
Issues and KPI Results.” As also stated in interview with top management, I recommend that both internal and external stakeholders be
consulted with when deciding on CK’s CSR issues and KPI concerning their appropriateness and persuasiveness.
CK has embarked on a course for a new form of CSR management. I have high expectations for the creation of frameworks andimprovement of performance going forward.

May 9, 2015

Masahiko Kawamura
8715. Editor’s Note and Acknowledgments
Editor’s Note
This is the second issues of the “Sustainability Report.” In April, we established a new dedicated department as part of ourorganizational structure to address CSR initiatives, and under this framework we have launched full-fledged CSR initiatives.
Furthermore, in consideration of the suggestions received from the third-party opinion of Chief Researcher Kawamura of the NLI
Research Institute from the previous fiscal year, for this fiscal year we have reviewed the KPIs for Calsonic Kansei’s key CSR
issues and disclosed these KPIs in this report. We plan to revise these KPIs once again during our activities for the current
fiscal year in order to set targets that are in more accordance with the demands of society. There is still much room for
improvement in the details of our activities, and accordingly we plan to make internal and external communication centeredaround the new organization more active and make improvements in all ways possible.
We would like to make the Sustainability Report more complete and full of information as we aim to produce a report that is
satisfactory for all of our stakeholders.
We always welcome your honest feedback.

Acknowledgments
We received the support of many people in our activities this year. We are truly grateful.
We plan to plan and implement various activities during the current fiscal year as “The First Year of CSR”, and we would like tothank you for your further continued guidance and support to this end.
 NLI Research Institute: Chief Researcher Masahiko Kawamura
In addition to his cooperation with third-party opinion and interview with top management for this year aswell, he also provided other various advice on the report.
 Canon Marketing Japan Inc.: Chairman Etsuhiro Hosoda
Continuing on from the officer’s seminar and manager training from last year, he also served as the lecturer
for the affiliated company manager seminar this fiscal year, and this seminar was also very popular among
participants.
 Sustainable Management Forum of Japan: Director Harue Nakamura
He provided support for the development of tools for the implementation and review of sustainability, supply
chain, and due diligence.
 Nissan Motor Co., Ltd.: CSR Department Manager Shu Kawamura
We look forward to his continued guidance this fiscal year on CSR activities going forward.
 All of our employees that supported us in our activities
We would like to once again thank everyone that helped in the creation of the CSR policy and report and all
employees working devotedly in CSR related activities on a regular basis.

About the CoverThe cover displays the Sakitama Ancient Burial Mounds that serve as the word origin for Saitama Prefecture, which is where our
Headquarters is located. The park contains over ten ancient burial mounds of various sizes, including the Maruhakayama Ancient Burial
Mound that is said to be Japan’s largest circular ancient burial mound. This Maruhakayama Ancient Burial Mound is displayed in the
cover photo.
There are large cherry trees that have been planted at the top of the mound. While it was unfortunately cloudy when we visited, thebalance with the cherry trees in the surroundings is great and the park is visited by many photo enthusiasts from the early morning.
The cover photo is from a time of the year with verdant fresh leaves after the cherry blossoms have scattered.

Logo design conceptThis sleek, sharp design is a symbol of power and technologicalcapabilities. At the same time, it represents a refreshing breeze
carrying the image of a comfortable environment, which expresses thecompany’s policy of generating new winds that bring a new kind ofvalue to the world.
Driven“Driven” uses the word “drive” that we associate with cars, while theword “Inspiration” expresses elements related to our employees and“Innovation” expresses elements related to the things that we produce,
how we work, and how we provide value to customers
88Calsonic Kansei Corporation/R&D Center and Headquarters
Address: 2-1917 Nisshin-cho, Kita-ku, Saitama City, Saitama 331-8501
Telephone: 048-660-2161 (Corporate Planning Headquarters)