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Sustainability Report
Web Version
THE

ENVIRONMENTLABOR PRACTICESING PR
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FAIR
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CONSUMER ISSUES

2017

IndexIndex

Top Commitment

Our Stance on
CSR

Stakeholder
Engagement

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

Environmental Initiatives ･････････････････ 104

Our Stance on CSR ･･････････････････････ 006

Environmental Management ･････････････ 105

CSR Policy ････････････････････････････ 006

Environmentally-Conscious Monozukuri･･･ 113

CSR Medium-term Plan･････････････････ 008

Approaches to Climate Change ･･････････ 119

Key Issues in CSR Activities･････････････ 009

Approaches to Resources ･･････････････ 123
Conservation and Recycling

Contribution to SDGs ･･･････････････････ 012
Stakeholder Engagement ････････････････ 014

Appropriate Management of ･････････････ 130
Chemical Substances

Public-Private Cooperation Creating ･･････ 020
Innovations to Propel Saitama Prefecture

Environmental Burden Data ･････････････ 134(Material Flow)

Governance ･････････････････････････････ 030
Corporate Governance ･････････････････ 031
GovernanceSocial Initiatives

Environmental
Initiatives

Compliance ･･･････････････････････････ 035

Environmental Data of ･･････････････････ 142
Manufacturing Plants in Japan

Social Initiatives ･････････････････････････ 049

Key CSR Indicators and Results ･･････････ 158

Social Contribution Activities ････････････ 050

Key CSR Issues and KPIs･･･････････････ 158

Respecting Human Rights ･･････････････ 061

Sustainability Data ･････････････････････ 158

For a Safe, Reliable, and ････････････････ 066
Comfortable Automotive Lifestyle

Environmental Action Plan and Results ･･･ 160

Together with our ･･･････････････････ 066
Business Partners

Creating Social Values through ･･･････ 077
Innovations
Creating an organization in which ････････ 082
employees can participate actively

About Our
Reporting

Environmental Action Plan and Results ･･･ 139

Risk Management ･････････････････････ 040

Quality Management ････････････････ 071
Key CSR
Indicators andResults

Environmental Accounting ･･････････････ 136

Protecting the Health and ････････････ 082
Safety of our Employees
Creating an Organization that ････････ 089
Values the Individual and Diversity
Fair Treatment and Evaluation ････････ 091
Human Resources Development to････ 092
Expand Individual Capabilities
Promotion of Diversity ･･･････････････ 096
Promotion of Work-Life Balance ･･････ 100
Employee Data ･････････････････････ 103

1

Environmental Data of ･･････････････････ 160
Manufacturing Plants in Japan
Employee Data ････････････････････････ 160
Third-party Recognition of ･･････････････ 160
CSR Initiatives
About Our Reporting ････････････････････ 162
Report Scope and Structure ･････････････ 162
GRI Guideline Comparison Table ････････ 164
ISO Comparison Table･･････････････････ 185
Glossary ･･････････････････････････････ 187
Third-party Opinion ････････････････････ 188

IndexTop Commitment

Turning Change into Opportunity
Top Commitment

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
ReportingAiming to be a Great Company that can contribute to solutions to the world’s
social issues in a sustainable manner through our business
Hiroshi Moriya
President and CEO, Calsonic Kansei Corporation

Pursuit of CSR to Grow as a Great Company
The Calsonic Kansei Group is a Monozukuri* company that supports the motorization of the world.
In our position as a global supplier, we hope to be an important partner to car manufacturers allover the world, and be a company that contributes to the realization of a sustainable society as we
further develop world-leading eco-friendly products and advance continuous CSR initiatives.
At the end of March 2017, our Mid-Term Management Plan, CK GX4 T10, which we pursued forsix years, drew to a close, and it came time to take up the challenge of a new stage.
The CK GX4 T10 initiatives were pursued along the themes of four G keywords.

2

For the first G, “Green,” we successfully achieved our target of creating ten world-leading ecoIndexfriendly products.
For the second G, “Growth,” we declared a target of entering the global Top 10 automotive
suppliers in sales revenue (one trillion yen or more). We have achieved that target of one trillion

Top Commitment

yen in sales since 2015.
For the third G, “Global,” we implemented a variety of initiatives to conduct competitive Monozukuri
on a global scale with our unique, leading technologies.

Our Stance on
CSR

Our global production structure of 79 sites in 15 countries and development structure of 14
locations in 8 countries are major achievements that have come from these endeavors, which I
believe have contributed to the expansion of revenue and income. We have also built globally

Stakeholder
Engagement

standardized production and development processes to make our operational processes more
efficient.
While our Green, Growth, and Global endeavors have borne fruit, that is not to say that we have

Governanceyet achieved our fourth G, to become a “Great Company.” To grow into a Great Company, we needto raise the value of our existence further by contributing to society. Declaring 2015 as our “FirstYear of CSR” we organized our CSR activities into a more systematic structure, and elevated themto company-wide initiatives. The outcome of these endeavors has been a major improvement inSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

our external indicators regarding sustainability.

Our Outlook as an Independent Monozukuri
Company– “Resilient” Sustainable Management –At the end of March 2017, the Calsonic Kansei Group left the Nissan Motors Group, andtransitioned into an independent Monozukuri company manufacturing automobile components.

About Our
Reporting

Leveraging the abundant industry knowledge of our new partner, Kohlberg Kravis Roberts (KKR),
we will build up the new, reborn Calsonic Kansei Group.
In the process, the Calsonic Kansei Group is integrating our financial and non-financial operations,and we will further evolve our “resilient” sustainable management.
The keywords for our new Mid-Term Management Plan, which launches this year, are “sustainablegrowth” and “raising corporate value.” “Sustainable growth” refers to consistent improvement in our
financial indicators, that is, continuing to renew our record-high profits that have continued since2013. “Raising corporate value” will involve the pursuit of two things. The first is to become a key
supplier that is indispensable to our customers, the automotive manufacturers. The second is tocontinue to raise the value of our existence in non-financial CSR aspects. We will set milestones
that will allow the Calsonic Kansei Group to achieve its goal of becoming a Great Company in
2021.

3

The key to achieving this goal will be just how far each and every employee can act with a “CSR
Index

mindset.” This will require not only taking on board society’s demands, but also fostering a mindset
for thinking about how they can contribute to society as individuals.
Our employees are one of the important stakeholders in our CSR activities. In addition to their

Top Commitment

contributions outside the company, we will continue to advance workplaces that have a pleasantand rewarding working environment for our employees.

Our Stance on
CSR

Stakeholder
Engagement

Responding Promptly to the Demands of Global
Society Amidst Fast-paced Change
The pace of change of global society continues to accelerate. The speed with which the Paris
Agreement, the new international climate change framework, has come into force is symbolic ofthat trend. The Calsonic Kansei Group, as a member of the automobile industry, which has a deep

Governanceassociation with the environment, is actively engaged in finding solutions to environmental issues.
We will respond sensitively to these kinds of international developments and place even more
efforts into our initiatives.

Social Initiatives

One major achievement of our CSR activities in Fiscal 2016 has been our response to humanrights, which has become an issue of increased interest around the world. The Calsonic KanseiGroup established a Human Rights Policy in April 2016, declaring our intention to respect
international standards and protect basic human rights. As such, we are engaged in the respect ofEnvironmental
Initiatives

human rights not only of our own employees but also in our supply chain. In September 2016, wereleased a statement as required by the U.K. Modern Slavery Act that came into force in 2015.

Key CSR
Indicators andResults

We will also engage proactively, through our business operations, in achieving the Sustainable
Development Goals (SDGs). We will also encourage our employees to be involved and contributeto resolving social issues as a good corporate citizen.

About Our
Reporting

Creation of Social Value and Approaches toDiversity
The Tokyo Olympic and Paralympic Games will take place in 2020. One of the key concepts ofthese Games is “Unity in Diversity.” As a corporate group with its global headquarters located in
the host country of Japan, we will be even more proactive in our approaches to diversity.
Specifically, in consideration of diversity, we will thoroughly cultivate our valued human resourcesin a way that will make the most of the individual characteristics of each and every one of ouremployees, and we will strengthen our business management to “grow together” with our
employees. Diverse ideas spring forth from organizations whose members come from a wide
range of backgrounds, including gender, age, birthplace, culture, faith, and beliefs, and it is from4

those ideas that innovation is born. In other words, fostering an organization with diversity isIndexessential to the Calsonic Kansei Group as it continues to take on the challenge of creating newvalue for society.

Top Commitment

Our Stance on
CSR

To Become a Group that Can Grow and Prosper
Sustainably for 100 Years and Beyond
The Calsonic Kansei Group will mark the 80th anniversary of its foundation in 2018. For the Groupto grow and prosper sustainably for the next 100 years and beyond, the pursuit of CSR activities
will be imperative.

Stakeholder
Engagement

I hope that our stakeholders will watch over the Calsonic Kansei Group with anticipation of how itwill proceed amidst such great changes. Turning those major changes into opportunities, we willcontinue to build up our initiatives within and outside the company, in the hope of drawing closer,

Governancestep by step, to our goal of becoming a Great Company.
At the Calsonic Kansei Group, each and every employee will, as one team, enjoy the changes
ahead and press forward in their daily work with even more confidence and pride than before.

Social Initiatives* Monozukuri refers to the creation of value in all respects, through manufacturing fine products and providing excellent services ina timely manner to meet customers’ expectations.

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting5IndexTop Commitment

Our Stance on
CSR

Our Stance on CSR

CSR Policy

Calsonic Kansei’s CSR Policy outlines the responsibilities and policies Calsonic Kansei promises
to fulfil for its stakeholders, with a view to achieving its “Corporate Vision.” Based on this policy,
each employee contributes to the achievement of a sustainable society by conducting their daily
operations with an awareness of social responsibilities and with well-balanced business

Stakeholder
Engagement

management based on environmental, social, and economic aspects.

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

Responsibilities to Business Partners
Social Initiatives

We will collaborate with our business partners, who provide us with components and services, as
equals, and aim to create mutual improvement and sustainable growth through fair and ethicalbusiness practices.

Environmental
Initiatives

Responsibilities to Employees
Key CSR
Indicators andResults

We respect the diversity and value of each employee and provide opportunities for them todevelop talents that contribute to the company and to society, as well as securing a healthy andsafe workplace environment. With this approach, we will create a company in which every
employee can enjoy a rich life of hope, passion, and pride.

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

Responsibilities to Shareholders
We aim to improve our profitability by continuously developing competitive products, and at thesame time, we aim to enhance the company’s corporate value by conducting fair business trade
and with proactive information disclosure in order to return the generated benefits to ourshareholders.

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

Top Commitment

technologies: Environment, Safety and Comfort

Environment: Technologies for developing eco-friendly-vehicles
Safety: Technologies for creating automotive society without car accidents
Our Stance on
CSR

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

Stakeholder
Engagement

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

Governance

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

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting7

IndexTop Commitment

Our Stance on CSR

CSR Medium-term Plan
Basic StanceOur Stance on
CSR

Taking into consideration the progress made in CSR initiatives, the Calsonic Kansei Group
formulated its first CSR Mid-Term Plan as an organization in May 2016. By incorporating requests
Stakeholder
Engagement

Governancefrom stakeholders more fully than before, the new plan stresses the importance of expanding thetarget for the PDCA cycle to all corners of our globalizing Group.

CSR Vision
Toward the goal of remaining an honest and trusted company, we strive to create a rewarding
workplace, develop aware employees who tackle social issues, build a resilient company, andcontribute to the achievement of a sustainable society.

Social Initiatives

Priority Measures
1. Improving Employee Awareness
Environmental
Initiatives

From the viewpoint of encouraging active participation of women and securing human resources,
which are some of the major issues in the manufacturing sector, we are working to create an easyto-work-in and attractive workplace, and improve employee awareness levels so they are able to

Key CSR
Indicators andResults

sense social issues on their own and work toward resolving them.
(1) Creating a rewarding workplace (decent work)(2) Improving employee awareness about tackling social issues

About Our
Reporting

2. Coexisting with Society
As a global company, we are building a system that complies with global rules.
(1) Compliance with international standards in human rights and labor rules(2) Resolution of social issues through business operations
3. Improving Corporate ValueAs we strengthen our environmental, social, and governance (ESG) initiatives in both financial andnon-financial operations, place a particular focus on the development of eco-friendly products, sothat we can continue to contribute to the realization of a sustainable society, while also growing
sustainably ourselves at the same time.
(1) Achieving the Mid-Term Management Plan
(2) Strengthening our CSR activities

8IndexOur Stance on CSR

Key Issues in CSR Activities
Top Commitment

Identification of Key CSR Issues

Our Stance on
CSR

The Calsonic Kansei Group has identified its key CSR issues and KPIs as a concrete action planfor the CSR Mid-Term Plan, and is striving to reliably implement the PDCA cycle to achieve them.
To identify the key CSR issues, we conducted a materiality analysis from a global Group
perspective, paying particular attention to the precise identification of society’s expectations.

Stakeholder
Engagement

Calsonic Kansei Group’s Materiality
With regard to the Calsonic Kansei Group’s materiality, we have classified the various initiatives weGovernancehave undertaken to date according to the seven core subjects defined in ISO 26000, the guidance
document for social responsibility, using the following two parameters: (1) degree of stakeholder
expectation, and (2) the degree of difficulty and time it will take to achieve. In this way, we haveadopted a process that identifies key CSR issues based on priority.

Social Initiatives

Based on the results of the materiality analysis, the Calsonic Kansei Group identified 25 key CSR
issues and 43 initiatives, and has started implementing the PDCA cycle on those issues andinitiatives according to their priority.
The progress of initiatives for each key issue and their outcomes are reviewed by senior

Environmental
Initiatives

Key CSR
Indicators andResults

management and released in our sustainability reports.

Issues to be Addressed

About Our
Reporting9

IndexMateriality Assessment Process
Calsonic Kansei headquarters played a central role in the materiality assessment process, which
was undertaken from a global Group perspective. As a means of incorporating a wide variety of

Top Commitment

stakeholder expectations, we adopted the following viewpoints as evaluation parameters.

Viewpoints Incorporated into Materiality Assessment
Our Stance on
CSR

1. Feedback through day-to-day dialogue
Customer comments, employee questionnaires, market questionnaires, etc.
2. Global economic and social mega-trends and initiatives

Stakeholder
Engagement

World Economic Forum’s Global Risk 2015, United Nations’ Global Compact and Sustainable
Development Goals (SDGs), etc.
3. International CSR guidance and guidelines
ISO 26000, GRI Sustainability Reporting Guidelines, etc.

Governance

4. Evaluations by ESG investment rating agencies
FTSE4Good, CDP Climate Change, Toyo Keizai’s CSR Ranking, etc.

Social Initiatives

Active Incorporation of Expert Recommendations
Environmental
Initiatives

For some time, Calsonic Kansei has actively sought to implement the recommendations of
Key CSR
Indicators andResults

About Our
Reportingindependent experts.

For this year’s report, we obtained a third-party opinion from Ms. Kumi

Fujisawa, a highly respected expert in the areas of CSR and ESG.

Third-party Opinion10

IndexTop Commitment

Approaches to Execution of Key CSR Issues

The Calsonic Kansei Group has appointed certain divisions to be responsible for each of the 25
key CSR issues. Since FY2016, those responsible divisions have played a central role inadvancing the steady execution of the KPIs.
Also, in consideration of the increasingly borderless nature of our business, we are in the process

Our Stance on
CSRof actively expanding the scope of the PDCA cycle beyond Japan to our overseas operations as
well. Going forward, with Calsonic Kansei global headquarters acting as the division with overall
control, we will set up divisions in each region to manage CSR, for the pursuit of CSR initiatives
that are precisely in line with the individual characteristics of each region.

Stakeholder
Engagement

Global CSR Structure
GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting11

IndexOur Stance on CSR

Contribution to SDGs
Top Commitment

Our Stance on
CSR

Calsonic Kansei’s CSR and the Sustainable Development Goals(SDGs)In September 2015, more than 150 members of the United Nations attended the UN Sustainable
Development Summit at UN Headquarters in New York. The outcome of the summit was the
adoption of “Transforming Our World: the 2030 Agenda for Sustainable Development.” The

Stakeholder
Engagement

Agenda contains a declaration and goals that serve as a plan of action for people, planet andprosperity. Those goals are the 17 Sustainable Development Goals and 169 targets, known as the
SDGs.
As a global company, the Calsonic Kansei Group works to bring solutions to the challengesthe

Governanceworld faces today through its business, and will strive to promote further CSR activities with theaim of achieving these internationally agreed goals.

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting12

17 Goals to Transform Our World
Index
Goal 1:

Goal 2:

End poverty in all its forms everywhere

End hunger, achieve food security andimproved nutrition and promotesustainable agriculture

Top Commitment
Goal 3:

Goal 4:

Ensure healthy lives and promote wellbeing for all at all ages

Ensure inclusive and quality education
for all and promote lifelong learning

Goal 5:
Achieve gender equality and empower
all women and girls

Goal 6:
Ensure access to water and sanitation
for all

Goal 7:

Goal 8:

Ensure access to affordable, reliable,
sustainable and modern energy for all

Promote inclusive and sustainableeconomic growth, employment anddecent work for all

Goal 9:Build resilient infrastructure, promotesustainable industrialization and foster
innovation

Goal 10:
Reduce inequality within and among
countries

Goal 11:Make cities inclusive, safe, resilientand sustainable

Goal 12:
Ensure sustainable consumption andproduction patterns

Goal 13:
Take urgent action to combat climatechange and its impacts

Goal 14:
Conserve and sustainably use theoceans, seas and marine resources

Goal 15:

Goal 16:

Sustainably manage forests, combat
desertification, halt and reverse land

Promote just, peaceful and inclusive
societies

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reportingdegradation, halt biodiversity loss

Goal 17:
Revitalize the global partnership forsustainable development

13

IndexStakeholder Engagement
Top Commitment

Our Stance on
CSR

Fundamental Principles

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

Stakeholder
Engagement

the company, and is committed to the active disclosure of information to its stakeholders. It is also
engaged in the enhancement of activities to promote fair and constructive dialogue with its
stakeholders.

Governance

Stakeholder

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting14

IndexTop Commitment

Stakeholder Initiatives

GlobalActivity

Achievements in Fiscal 2016
Our Stance on
CSR

Major stakeholders

Major engagements

Meetings with top executives

Stakeholder
Engagement

Regular sales/marketing andCustomers

Automotive
manufacturers

proposal activities
Customer satisfaction surveys
Exhibitions
Opinion exchanges

GovernanceRegular procurement activities
Suppliers Meetings (policy

Social Initiatives

briefings, liaison meetings)
Supplier audits

Environmental
Initiatives

Suppliers

Companies that
supply parts andservices to the
Calsonic Kansei
Group

Supplier exhibitions at CK
headquarters
Due diligence surveys
Survey regarding action on conflictminerals
Establishment of supplier

Key CSR
Indicators andResults

whistleblower desk

Personnel reviews
CK Way and Compliance
Penetration Survey

About Our
Reporting

Employees

All employees of
the CalsonicKansei Groupand their families,
retiredemployees

Employee Commendation Program
Labor-management roundtables
Advice desk
Various counselling services
Internal whistleblowing scheme
Company intranet comment form
Company newsletter

15

Initiatives
To respond to the increasingly diverse
requirements and expectations of thetimes and to provide a high-quality spirit
and service that will satisfy ourcustomers, we engage an external
specialist firm every year to conduct aquantitative evaluation of each of our
product areas from six perspectives,
including quality. This initiative has
been ongoing since FY2010, and has
shown improvements in the evaluations
every year. The evaluation also gathers
together opinions on areas that require
improvement. In FY2015, opinions
expressed included the need for
improvement in the area ofmanagement.

The Calsonic Kansei Group iscommitted to working together with our
suppliers as equal partners for themutual achievement of greater
competitiveness and sustainablegrowth, and by following fair and ethicalbusiness practices. Suppliers meetings
are held on an annual basis, at which
we communicate the Group’s
procurement policies for the financial
year, award suppliers that haveexcelled in their performance, andconduct questionnaire surveys.
Separate liaison meetings are also heldfor each procurement category, as partof our efforts to achieve two-way
communication.

We are engaged in efforts that respect
the diversity and values of eachindividual employee and that will givethem a place to develop their own
character, so they may better contributeto the company and to society, and to asafe, healthy environment.Every year,
we survey all Calsonic Kansei Group
employees about the degree to which
they practice the ten action principles of
our action guideline, the CK Way. We
also collect anonymous comments
about problematic behavior, andactivate the PDCA cycle to pursue
improvements. For our retired
employees, we send out the company
newsletter for the first two years after
their retirement and endeavor tomaintain communication with them.

Major stakeholders

Major engagements

Index

General Meeting of Shareholders
IR website

Shareholders,
Investors

Top Commitment

Individual andinstitutional
investors

Financial results briefings
Facility tours
Workshops
Individual meetings
Business reports

Our Stance on
CSR

Government,
Municipalities

Government
agencies andmunicipalities inall regions inwhich theCalsonic KanseiGroup hasbusiness
locations.

Saitama Mayor’s visit to CK
headquarters and meeting withCEO Moriya
Meeting between Governor of
Saitama Prefecture and CEO
MoriyaCooperation with government
events (volunteering, sponsorships,

GovernanceThrough talks with the governor of
Saitama Prefecture and Mayor of
Saitama City, where CK headquarters
is located, we share the challenges
facing the local community, leverage
those discussions in our corporate
activities, and enhance ourcontributions to the local community.
Both in Japan and overseas, we strive
to contribute to local communities as agood corporate citizen by encouraging
and sponsoring volunteer activities by
our employees at governmentorganized events.

etc.)

Kids Engineer program
Traveling classroom activities forSocial Initiatives

Localcommunities

Environmental
Initiatives

In addition to financial results briefings,
we hold facility tours (five times a year)
and workshops (once a year) for our
institutional investors, at which thepresident and directors themselves
brief our investors directly. We also
maintain an ongoing dialogue with ourinvestors through individual meetings(200 a year), and feed back to
management their questions, opinions,and requests regarding the company’s
medium-term growth strategies andshareholder returns.

Responses to laws and regulations
Regular individual meetings

Stakeholder
Engagement

Initiatives

Local residents
and communities
in all regions inwhich theCalsonic KanseiGroup hasbusiness
locations

elementary schools
Clean-up activities
Environmental Communication
meeting
Meetings with residents’associations
Business site tours

Key CSR
Indicators andResults

About Our
Reporting

16

The Calsonic Kansei Group undertakesa range of activities aimed at gaining
the acknowledgement and trust of local
residents.
As part of these initiatives, since 2015,
we have invited, once in two years,
representatives of local residents’associations and companies to the
Calsonic Kansei R&D Center andcorporate headquarters to take part inour “Environmental Communication”
meetings to discuss CK’s
environmental activities.
Similarly, our other facilities around
Japan and overseas have establishedvarious opportunities forcommunication with their local
communities and are engaged incooperation with the local regions.

Customers
Index

Ongoing Customer Satisfaction Surveys
Japan

Overseas

SystemTop Commitment

The Calsonic Kansei Group conducts a customer satisfaction survey once a year to assess how
customers view its business activities. 2016 marked the 12th year of this survey, which was first
conducted in 2005.

Our Stance on
CSR

The survey was conducted as a questionnaire to which customers applied a five-level rating on
items related to quality, cost, delivery, development, management, and sales activities (QCDDMS)
along with comments on specific improvement requirements.
Analysis is conducted based on the four points below.

Stakeholder
Engagement

Long-term monitoring of changes in the same evaluation items
Clarification of survey targets and understanding of the collection status (understanding ofrelationship with customers)
Confirmation of changes and comments, and the clarification of issues

Governance

Incorporation of methods for addressing issues in the plan for the next fiscal year andimplementation of this plan
We aim to use this survey as a contact point for further enhancing communication with customers
and for improving customer satisfaction.

Social Initiatives

Fiscal 2016 Survey Results and Response
We analyze survey data and customer feedback, by customer, product and region.
Environmental
Initiatives

The following represents some of the customer feedback received during fiscal 2016.
Points for Improvement by Function

Key CSR
Indicators andResults

Sales
1. Issues related to costs and cost details (221 cases)
2. Issues related to management (51 cases)
3. Issues related to response and speed (37 cases)

About Our
Reporting

Development
1. Issues related to new development and advanced development (95 cases)
2. Issues related to management (project management, etc.) (44 cases)
3. Issues related to proposal activities (37 cases)
Quality
1. Issues related to management (104 cases)
2. Issues related to response and speed (58 cases)
3. Issues related to analysis capabilities (32 cases)
We hope that the planning and implementation of improvement proposals for each of thesefunctions will lead to improved customer satisfaction and the establishment of better relationships.

17IndexFY2016 Customer Satisfaction Evaluation by Product(Change from FY2015)

Top Commitment

Our Stance on
CSR

Total average

A

0.25

B

0.24

C

0.24

D

0.06

E

0.05

F

0.05

G

0.04

H

0.01

I

-0.00

J

-0.05

K

-0.24

L

-0.42

UP

Stakeholder
Engagement

Governance

Product

DOWN

Social Initiatives

FY2016 Customer Satisfaction Evaluation by Item
Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting18

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

Our Stance on
CSR

Stakeholder
Engagement

Governance

Number of responses received

Evaluation point

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting19

Stakeholder Engagement
Index

Public-Private Cooperation Creating
Innovations to Propel Saitama Prefecture

Top Commitment

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Kiyoshi Ueda

Hiroshi Moriya

Govenor of
Saitama Prefecture

Presidnt and CEO
Calsonic Kansei Corporation

The Social Signiﬁcance of
Doing Business in
Saitama

About Our
Reporting＊This meeting was held in April 2017. The title and otherinformation are from the time of the meeting.

MoriyaAfter a change in its major shareholder,Calsonic Kansei has embarked on a new course as anindependent monozukuri company, a manufacturer of
automotive components and creator of innovation to
support the global automotive industry. Next year,
2018, we will mark the 80th anniversary of our
foundation. It will also be ten years since we relocatedour headquarters to Saitama Prefecture. Positioning

20

these milestones as the companyʼs “second foundation,” we hope to give fresh thought to what we should do forsociety.
Index

Governor Ueda, you have been actively pursuing economic policies for some time, including attracting companies
to the prefecture, havenʼt you?
Governor

Top Commitment

Saitama Prefecture has great momentum at the moment. We now have the third fastest population

growth after Okinawa and Tokyo, and our nominal GDP in 2014 was\20,914.4 billion. In terms of GDP growth
between 2003 and 2013, we were second only to Aichi Prefecture. I believe that this is the result of the eﬀorts wehave put into attracting companies to the prefecture, nurturing cutting-edge industries, and supporting companies.

Our Stance on
CSR

The Saitama Prefectural Government has a budget of \1.86 trillion, about half of which is for personnel and social
security expenses. We have\150 billion in investment expenses, and spend\80 billion on public works. We havebeen attracting companies since 2005, and the most recent ﬁgures for total investment in the prefecture to date is\1,366 billion. This means that average investment per year is about the same as the Prefectural Governmentʼsannual investment expenses. Companies located in the prefecture pay business tax, corporate tax and ﬁxed asset

Stakeholder
Engagement

tax, their employees pay consumption tax, and their consumer behavior creates added value, all of which iscontributing to Saitama Prefectureʼs economy. I believe that one of the greatest challenges for the prefecture has
been to ﬁnd ways to avoid relying on public works and to create an environment in which private-sector companies
ﬁnd it easy to do business.

GovernanceCalsonic Kansei has located its headquarters in Saitama Prefecture, from which you are conducting business on a
global scale, but what is your view of your relationship with the local community?
MoriyaSocial Initiatives

Our R&D Center and corporate headquarters are located in Saitama City, our advanced electronic

components plant is in Kodama-cho, and our Production Engineering
Center and interior components plant are in Yoshimi-cho. All of our global head-oﬃce functions related tomonozukuri are here in Saitama Prefecture. Many of our employees also live in the prefecture, and they are amajor vital force for the company. The kinds of CSR initiatives we are placing our greatest eﬀorts into are

Environmental
Initiatives

contributions to the local community and the environment. We currently have 79 locations in 15 countries aroundthe world, each of which has close relationships with its local community. We want to build good relationships withthe local community and government, which are our important stakeholders in Saitama Prefecture, and become a

Key CSR
Indicators andResultsmodel for our colleagues around the world. We hope to continue to cooperate with the local community even moregoing forward.
Governor

Yes, I agree. I think there are many ways in which the public and private sectors can cooperate,

creating a win-win situation for both sides. The “tree-planting with commemorative plate” initiative is a good
About Our
Reportingexample of this. Individuals and organizations that donate a certain amount or more to the Sainokuni Green Fund
can have a tree planted in their name, with a commemorative plate attached.
This has become a popular way to commemorate occasions such as weddings and birthdays. These kinds ofinitiatives make it possible to make the prefecture greener without using taxpayersʼ money. Also, depending on
what kind of private-sector energy and ideas are introduced, there are still dynamic things we can do even if tax
revenue declines. I think it would be good if we could come up with ideas like this together.

21

IndexTop Commitment

Aiming for co-existence
and co-prosperity withthe local community
Governor

What thoughts do you have about solvingsocial issues in the region?
MoriyaOur Stance on
CSR

One of the most important social issues that

the Calsonic Kansei Group needs to address is theenvironment. In our Mid-Term Management Plan thatstarted in 2011, we set a target of creating ten ecofriendly products, and we have achieved that target.

Stakeholder
Engagement

Our sites in Saitama have obtained ISO 14000
certiﬁcation and are conducting appropriate
environmental management. Going forward, we willcontinue our eﬀorts to contribute to the creation of a“clean society” through our business.

Governance

The residents of this region are very important stakeholders for our company. With our aim of co-existence andco-prosperity with the local community, in addition to the “local clean-up” initiatives conducted at each location, at
corporate headquarters, we hold “environmental communication” meetings, and have opened up our electricvehicle charging stations to the general public free of charge and installed groundwater ﬁltering systems. This

Social Initiatives

latter move is so we can provide drinking water to local residents in the event of a disaster. We also want toactively encourage our employees even further to participate in volunteer activities in the prefecture.
As you say, Governor, it is precisely because Saitama Prefecture is placing so much eﬀort into harnessing theEnvironmental
Initiatives

dynamism of the private sector that new business opportunities will emerge. If the prefectural government,
companies, and the local community can come up with and implement ideas, it will create a win-win situation foreveryone involved.

Key CSR
Indicators andResults

Expectations for CalsonicKansei

About Our
ReportingMoriya Tell me what expectations you have, if any, ofcompanies in the prefecture.
Governor

I would like to see them hold more factory

tours, as it would be very educational for social
studies. Consumers seem to be much more familiar
with the companies that deal with22

the consumer end product, such as the car companies, but I would like to see Calsonic Kansei, which
manufactures important components for those end products, promoting itself more.
Index

MoriyaWe want to convey the fun of monozukuri to children, who will be responsible for the future. Since 2012,

we have conducted a “Supporting What You Want to Do Project. ” This consists of traveling classrooms, in which
our employees visit elementary schools to teach them about the enjoyment of monozukuri. Last year, we also held
Top Commitment

factory tours for elementary schoolchildren and their caregivers. In addition to nurturing the next generation,
another area we are focusing on is diversity initiatives. With the aim of realizing a society in which all people canwork with vitality, at Calsonic Kansei, we strive to engage a diverse range of personnel. Governor, could I ask you

Our Stance on
CSR

what your thoughts are on employee welfare, parenting support, diversity, and other similar issues?
Governor

The prefectural government does provide some assistance in those areas, but I would like to see

eﬀorts to retain employees for longer through workplace-based childcare. At hospitals and the like, it is apparently
easier for nurses to keep working when they have access to childcare in the hospital. Even if it is diﬃcult for a
Stakeholder
Engagement

single company to do it alone, one solution may be for multiple companies to fund and co-manage childcare
facilities for their employees. Having said that, unless one company becomes the “ﬂag-bearer” and plays a corerole, it may be diﬃcult to pursue this, so I would like to see Calsonic Kansei, which is undisputedly a leading
company, pull others along in this regard.

GovernanceMoriyaThank you. We are moving into an era in which it will become more and more diﬃcult to secure

personnel, so we do want to become an attractive company that our employees will want to work at for a longtime.
Social Initiatives

GovernorIf multiple companies were to get together, there would be potential not just in the area of parenting,but also for new businesses and innovations to emerge.

Environmental
Initiatives

Key CSR
Indicators andResults

Towards further publicprivate sector cooperation
Governor

As a company located in Saitama, what

expectations do you have of the prefectural
About Our
Reportinggovernment?
MoriyaWe would like to collaborate in the area of

monozukuri. We want to pursue the disseminationand interaction of our monozukuri technologies, which
we hope will lead to the invigoration of the local
economy.

23

IndexGovernor

The Prefectural Government has designated 563 manufacturing plants that have solid technologicalcapabilities as Sai no Kuni (Land of Color and Splendor) Factories. We are pleased to have designated ﬁrst
Calsonic Kanseiʼs Kodama Plant, followed by your Yoshimi Plant in 2016. Kawaguchi was originally the site ofmany casting foundries and metal factories, so as an extension of that, the area now has many companies thatTop Commitment

supply components for aircraft and automobiles and the like. We think it would be a good idea if these designatedfactories were to form some kind of group that could hold networking events and the like.
MoriyaOur Stance on
CSR

You mentioned the growth in Saitamaʼs GDP. I look forward to new business opportunities emerging in

Saitama Prefecture as a result of collaboration between companies in the prefecture. There are many monozukuri
companies gathered in the prefecture, after all.
Governor

In a breakdown of the value of manufactured goods shipped from Saitama Prefecture, transport

equipment accounts for 17.9%, and food products for 12.9%.
Stakeholder
Engagement

MoriyaCalsonic Kansei is as an automotive components company, but I think it would be quite stimulating to

exchange opinions with food companies or similar and to tour each otherʼs factories. In the production of
automotive components, “Safety First” is our prime policy, and our electronics plant and plastics plant have
Governancestringent controls regarding contaminants, so we may be able to collaborate in common initiatives in the area of
hygiene management. We would like to deepen our learning through collaboration with other companies.
GovernorSocial Initiatives

Saitama Prefecture is one of the top prefectures in Japan in terms of the value of production ofpharmaceuticals and cosmetic products. Pharmaceutical production has extremely stringent safety and quality
controls. I would think that networking with diﬀerent industries would be very inspiring for both sides. Saitama isachieving growth through the good balance of a diverse range of industry types located in the prefecture. This isprobably because Saitama has favorable conditions for corporate activity, including its convenient access to theEnvironmental
Initiatives

Tokyo metropolitan area. Our support measures for companies are also proving eﬀective.
MoriyaTo put this another way, this is the “sustainable growth” that is Calsonic Kanseiʼs ideal. Even in times of

economic downturn, pharmaceuticals are essential, and people still want to wear cosmetics, donʼt they?
Key CSR
Indicators andResults

Collaboration in the area of monozukuri will also, I believe, lead to the cultivation of monozukuri personnel for the
next generation. I would like to see our industry as a whole driving a wedge into the trend for young people to drift
away from technology, by strengthening its collaborations with junior high schools, industrial high schools, andtechnical colleges.

About Our
Reporting24Building Personnel
Employment Models as Joint
Public-Private Sector
Initiatives

Index

Top Commitment

Governor

We have established the Saitama

Prefecture Global Fund for the active participation of
Our Stance on
CSR

global human resources, to assist people who want tostudy abroad, and we are engaged in cultivating global
human resources as a public-private sector cooperative initiative. For our new “From Saitama to the

Stakeholder
Engagement

World” scholarshipprogram, we have decided to give naming rights to companies and individuals who donate to the scholarship fund.
I would like to thank Calsonic Kansei for being one of the ﬁrst companies to make a donation. It would be
wonderful if the students who received these scholarships were to join companies in Saitama Prefecture on their

Governance

return from their study abroad, wouldnʼt it?
MoriyaWe were happy to cooperate with this initiative in the form of the “Calsonic Kansei Next Generation

Scholarship,” from our desire to produce people from Saitama Prefecture who have a global perspective and who
Social Initiatives

will be able to participate actively in the world.
Calsonic Kansei has also been involved in the Saitama Prefecture Overseas Internship Programs since 2011.
Every year, university students from Saitama Prefecture are oﬀered the opportunity to intern at our overseas
locations for two to three weeks.

Environmental
Initiatives

We also accept students from industrial high schools and technical colleges for internships. While it would be ideal
if they ultimately ended up working for us, even if that does not happen, we want them to learn about monozukuri.
We have a number of unique, leading technologies, but there is a limit to what private-sector companies can do todisseminate those technologies. Going forward, we hope to continue to pursue collaboration with government in

Key CSR
Indicators andResults

initiatives such as technology
older generation. According to Cabinet Oﬃce data, the so-called dankai sedai, Japanʼs baby boomer generation,
which experienced Japanʼs period of rapid economic growth, has a higher level of consumer conﬁdence than othergenerations. Fifty years ago, when the population surpassed 100 million, those aged 65 years and over accounted

About Our
Reportingfor just 7% of the population. Japanʼs population is projected to fall below 100 million 30 years from now, and in
2060, the 65-years-and-over age group will account for 40% of the population, or some 40 million people. Theremay even come a time when the elderly outnumber people of working-age. I believe we need systems that will
extend Japanʼs healthy longevity, so that people aged 65 years and over who want to continue working will be able
to do so.

exchanges with students and internships, to give25

these young people the opportunity toexperience ﬁrst-hand the enjoyment of

MoriyaIndex

You mean seeing our aging society not as a risk but as a business opportunity?

Governor

The working-age population in 1995 accounted for 70% of the entire population, but by 2040, thatwill have fallen to 54%, which will be the smallest of the major nations. However, if people were to keep working
until the age of 74, the working-age population in 2040 would be 66%, making it the highest in the world.
Subsequently, we would be vying with the United States for ﬁrst place. If we think in these terms, we need to
Top Commitment

create the environment in which people could keep working healthily until the age of 74. It would be good if we
could come up with ways of enabling people to work no matter what their age, by using experience tocompensate for declining muscle strength, and introducing AI and equipment.

Our Stance on
CSR

MoriyaI agree completely. Moreover, the active participation of women in the workforce will also be essential.

We are seeing increases in the number of women working in our plants, and I would like to cultivate female plant
managers. To create an environment in which diverse personnel can work, we will need to actively incorporate
technology such as automation and IoT, and think of ways in which anyone can be involved in monozukuri.

Stakeholder
Engagement

Governor

For Japan to compete in the world, I imagine that these kinds of innovations will be indispensable.

Consumption would also be encouraged, and everyone will be happy.

GovernanceMoriyaThis is one perspective for achieving growth.

GovernorI look forward to cooperation between the private and public sectors to boost Saitama Prefecture

further.
Social Initiatives

MoriyaI realize you are probably very busy, but please do come and visit our corporate headquarters. Thankyou very much for your time today.

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting26

Index

Employee
Employee Awareness Survey

Top Commitment

GlobalSystemEach year, the Calsonic Kansei Group conducts a survey to assess how well the CK WAY, theOur Stance on
CSR

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

Stakeholder
Engagement

In Fiscal 2016, we achieved a 99.8% response rate at all of our global locations. Calsonic KanseiGroup’s strengths lie in the “Challenge”, “Commitment & Target” categories, along with “Diversity,”
which in the past has been a weakness.
In contrast, the survey results showed that there is room for further improvement in the “SelfDiscipline,” “Learning,” and “People-Oriented” categories. In Fiscal 2016, we also participated inGovernanceNissan Motor Company’s employee awareness survey. Based on the outcomes of that survey, we
are working to make improvements in each workplace, each facility, and across the entire Group,
to achieve a company that employees find rewarding to work for.

Social Initiatives

Labor-Management Relations
Environmental
Initiatives

GlobalSystemBased on the stance that healthy labor-management relations are essential for corporate growth,
Calsonic Kansei and its Group companies in Japan have built stable labor-management relations

Key CSR
Indicators andResults

with the Calsonic Kansei Group Union Confederation (CKGU), to which their employees belong.
We strive to improve the working conditions of our employees and revise relevant systems throughregular opinion exchanges at labor-management roundtables and in the Working Style
Improvement Committee. As of the end of March 2017, 100% of our employees (excluding those in

About Our
Reportingmanagerial positions, re-hires, and non-regular workers) belonged to the CKGU.
Job reassignments are made from a long-term, human resources development viewpoint, after
considering the individual employee’s career path preferences that have been identified throughinterviews with the HR Group and the employee’s supervisor. At least three months’ notice is given
before a job transfer to ensure a fair transfer process.

27IndexParticipation in Outside Organizations and Other Initiatives

Top Commitment

Basic StanceIn order to help create a better society, the Calsonic Kansei Group is actively participating in crossOur Stance on
CSR

Stakeholder
Engagement

industry initiatives and advanced initiatives being promoted through industry-governmentacademia collaboration.

Main Participating Organizations
Japan Auto Parts Industries Association (JAPIA)
Society of Automotive Engineers of Japan (JSAE)
Keidanren

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

Social Initiatives

Industry-Government-Academia Projects
Environmental
Initiatives

In Fiscal 2016, Calsonic Kansei participated in 35 industry-academia collaborative research
initiatives.

Key CSR
Indicators andResults

About Our
Reporting28

Index

Basic Policies of Corporate Governance

Top Commitment

Our Stance on
CSR

Compliance with Japan’s Corporate Governance Code(FY2016)

CK
Stakeholder
Engagement

Policies
To comply with Japan’s Corporate Governance Code, which went into effect on June 1, 2015,
Calsonic Kansei has issued a Corporate Governance Report disclosing its policies related to thefollowing principles and sub-principles: 1.4 Cross-Shareholdings, 1.7 Related Party Transactions,

Governance

3.1 Full Disclosure, 4.1.1 Scope and content of matters delegated to management, 4.9
Independence Standards and Qualification of Independent Directors, 4.11.2 Concurrent posts inother companies of directors and statutory auditors, 4.11.3 Analysis and evaluation ofeffectiveness of the Board of Directors as a whole, 4.14.2 Training policy for directors and statutorySocial Initiatives

auditors, and 5.1 Policies for Constructive Dialogue with Shareholders. We actively incorporate thebusiness management ideals that the Corporate Governance Code demands, and, while pursuing
dialogue with stakeholders, strive to realize a sustainable society.

Environmental
Initiatives

In line with Principle 4.8 Effective Use of Independent Directors (at least two), Calsonic Kansei
appointed two independent outside directors at the June 2016 General Meeting of Shareholders, inan effort to ensure diversity among the members of the Board of Directors.
The Board of Directors met 21 times in Fiscal 2016, including extraordinary meetings. The rate of

Key CSR
Indicators andResults

attendance of our outside directors was 100% *, as was the rate of attendance of our outside
auditors.
* For outside directors appointed in June 2016, this refers to the rate of attendance after their appointment.

About Our
Reporting29

IndexGovernance

Top Commitment

Our Stance on
CSR

Stakeholder
Engagement

Corporate Governance
GovernanceCompliance
Risk Management

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting30

IndexTop Commitment

Corporate Governance Structure (FY2016)

GlobalSystemAs a company with a board of company auditors, Calsonic Kansei has built a corporate

Our Stance on
CSRgovernance structure led by its Board of Directors, auditors, and Board of Auditors.
Board of Directors meetings are called and chaired by the Chairman of the Board of Directors or
the President.
There are five directors, two of whom are outside directors. This ensures that diverse viewpoints

Stakeholder
Engagement

are incorporated into management decisions and strengthens the mutual-monitoring function
among the directors. Our criteria for determining the independence of outside directors conformwith the independence standards stipulated in the Company Act and by the Tokyo Stock
Exchange.

Governance

The auditors conduct a thorough audit of the directors’ performance from a professional
perspective. Furthermore, two of the four auditors are outside auditors, to ensure that audits are
conducted from a more independent standpoint and to strengthen the auditing function.
The current structure has been chosen because we believe these measures will ensure theSocial Initiatives

effectiveness of our corporate governance.

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting31

Corporate Governance Structure
Index

Top Commitment

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting32

IndexConstruction of Internal Control System
GlobalSystemTop Commitment

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

Our Stance on
CSR

version), Regulations for Meetings of the Board of Directors, Regulations on Safety and HealthManagement, and Regulations for Management of Insider Trading Prevention. We ensure that ourboard members and employees are thoroughly familiar with these rules and regulations and thatthe performance of their duties fulfills our company’s social responsibilities.

Stakeholder
Engagement

Additionally, to ensure proper business operations within the Calsonic Kansei Group, we report on
certain important issues, carry out discussions, and make decisions based on the clear andtransparent Rules of Delegation of Authority established at the global level. These reports,
discussions, and decisions are made in committees such as the Global Executive Committee(GEC)*, which consists of company officers and managers of group subsidiaries.

GovernanceCommittees Responsible for Internal Control
Social Initiatives

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

Environmental
Initiatives

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

Key CSR
Indicators andResults

By working closely with these committees, we aim to solidify and further enhance our CSR
activities.
In Fiscal 2016, there were no legal violations with respect to the environment, labor, bribery,
information security, product safety, or exports. As such, Calsonic Kansei was not subject to any
sanctions such as fines.

About Our
Reporting

Furthermore, in the same Fiscal year, we received no complaints about any issues affecting
society.In terms of anti-competitive activities, after a determination by the European Commissionthat there had been an act that violated European competition legislation, a fine of 1,747,000 euros
was imposed. We will take further actions such as education and audits to ensure that there is norepeat occurrence,
On May 8, 2017, subsequent to the year of this report, due to a tender offer made for the company,
Calsonic Kansei delisted its shares from the First Section of the Tokyo Stock Exchange.

Nevertheless, we will continue to work toward appropriate organizational governance andinformation disclosure under our CSR policy.

33

Committee

Index

Top Commitment

Stakeholder
Engagement

Title and division of responsible director

Risk Management Committee

Senior Vice President, Global Corporate Development Division

CK-DOA Committee

Executive Vice President and Chief Financial Officer, Corporate
Planning Division

Information Security
Committee

Executive Vice President and Chief Information Officer, Global
Corporate Reform Division

Compliance Risk
Management Committee

Our Stance on
CSR

Reports to the Boardof Directors

Health and Safety
Management Committee

Senior Vice President, Global Corporate Development Division
Twice a year (joint
report)Senior Vice President, Global Corporate Development Division

Environmental Management
Meeting

Executive Vice President, Global Production Division

Export Control Committee

Senior Vice President, Global Corporate Development Division

J-SOX Steering Committee

Executive Vice President and Chief Financial Officer, Corporate
Planning Division

Governance

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

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting34

IndexGovernanceCompliance
Top Commitment

Basic Stance
GlobalOur Stance on
CSR

PolicyIn the pursuit of the smooth operation of its business, the Calsonic Kansei Group recognizes theimportance of all employees practicing compliance, based on a strong sense of ethics.
The Calsonic Kansei Global Code of Conduct was established in 2003 in order to strengthen the

Stakeholder
Engagement

global compliance structure. This serves as a shared code of conduct that defines proper behavior
for employees around the world, and it applies to the entire Calsonic Kansei Group.

GovernanceCompliance Promotion System
GlobalSocial Initiatives

SystemThe Calsonic Kansei Group has established the Compliance Risk Management Committee topromote compliance in each region and at each of our business locations around the world. It has

Environmental
Initiatives

assigned executives and staff members responsible for compliance at each business location, andKey CSR
Indicators andResults

Global Compliance Structure

is working to spread and foster an awareness of compliance.

About Our
Reporting35

IndexGlobal Code of Conduct for Calsonic Kansei GroupTop Commitment

Our Stance on
CSR

Stakeholder
Engagement

Spreading Awareness of Compliance

Periodical Monitoring
GlobalSystemGovernance

The Calsonic Kansei Group periodically monitors the major compliance activities of its regions andbusiness locations around the world under the compliance program consisted of seven elements.
The outcomes of this monitoring are reported to the Compliance Risk Management Committee toassist in further improvements of the process.

Social Initiatives

Compliance Program

1. Standards and procedures
2. Organizations
Environmental
Initiatives

3. Education and training
4. Monitoring and auditing
5. Incentive and discipline

Key CSR
Indicators andResults

6. Reporting and investigating
7. Response and prevention (management of compliance risks such as anti-bribery and anti-trust)Compliance Education and Awareness
About Our
ReportingGlobalSystemThe Calsonic Kansei Group conducts training on the Code of Conduct every year and collects
pledges in order to strengthen awareness about compliance. In fact, 100% of our employees inJapan and overseas signed pledges in Fiscal 2016.
As part of our education on the Code of Conduct, we also provide education as necessary on the
global risks of anti-trust law and anti-bribery law. For these risks, we have established basic
policies and rules – global (group-wide), for our Japanese locations, and for our overseas locations
and conducted communication and awareness-raising activities across the entire Calsonic KanseiGroup. In Fiscal 2016, in addition to our full participation education program, we also held training
for corporate officers on anti-bribery law in Japan, and anti-trust law and anti-bribery law training
for the relevant departments in Japan, the Americas, and Europe, in our efforts to keep therelevant people fully aware of these risks. We will also progressively hold this targeted training in
Asia, with the aim of reducing the risks on a global basis.

36

We have also developed our CSR Guidelines for Suppliers and asked their cooperation in ensuringanti-bribery and other compliance.
Index

Top Commitment

Our Stance on
CSR

Stakeholder
Engagement

Anti-bribery training for corporate officers in Japan
GovernanceInternal Whistleblowing System
Social Initiatives

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

Environmental
Initiatives

that each and every employee understands and implements compliance and is able to confirm
whether corporate activities are being conducted properly.
We have developed a framework that enables employees to directly communicate opinions,

Key CSR
Indicators andResults

questions, and requests to the company. This is helpful not only in terms of improving operations
and the workplace, but also in terms of creating a corporate culture that complies with corporate
ethics.
This framework also incorporates the concept of whistleblower protection in accordance with theWhistleblower Protection Act that came into effect in April 2006, in accordance with which it

About Our
Reportingoperates an external CK Helpline to serve as the contact point in Japan. The CK Helpline accepts
reports both online and over the phone and allows employees to make reports using either theiractual name or anonymously. An experienced person from a third-party organization receives thereports while protecting the privacy of the whistleblower, and then contacts the related department
or organization so that the appropriate response can be taken.
In each region and business location around the world, we have also established and run internal
whistleblowing systems that are optimized for each company while giving consideration to theculture and laws of each country. In the Americas and Europe, we have established hotlines asexternal contact points that accept reports 24 hours a day. We will also look into the establishmentof an external contact point in Asia going forward.
Under our whistleblowing systems, we respond carefully to ensure that whistleblowers do not
suffer any disadvantages from the perspective of whistleblower protection.
In terms of internal whistleblowing systems, in Fiscal 2016, we established a whistleblowing
contact point for suppliers, as well as employees. As with reports from employees, any reports

37

received from suppliers will be dealt with in confidence to protect the privacy of the whistleblowers,
to ensure that they are not disadvantaged.
Index

In the event of behavior in a workplace that could be suspected of a human rights violation, thecompany must be prompt in understanding the situation and taking an appropriate response. The
Calsonic Kansei Group believes that respect for human rights and the prevention of human rights
Top Commitment

violations are important to the employee whistle blowing system’s interview process. Confidentiality
is strictly adhered to in the running of the system, including the privacy of the person seeking
advice, to ensure that the whistleblower does not suffer any disadvantages.

Our Stance on
CSR

In fiscal 2016, 312 whistleblowing cases were recorded across the entire Group. All cases weresatisfactorily dealt with and improvements made to the system, in consultation with the relevant
departments.

Stakeholder
Engagement

Trends in Number of Whistleblowing Cases

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

2014

234 cases

2015

309 cases2016

312 cases

Export Control (Security Trade Control)
GlobalAbout Our
Reporting

SystemThe Calsonic Kansei Group has established the Export Control Committee, led by the CEO, tocomply with Export Trade Control Orders and Foreign Exchange Orders under the Foreign
Exchange and Foreign Trade Act. This committee also implements appropriate export control ofgoods, technologies and other matters with the potential to be diverted into weapons and militaryuse. It consists of members of each division involved with exports, and its tasks include control ofthe export of parts, equipment and measuring instruments, control of the transfer of technologies
and engineering diagrams, acquiring information on new laws and regulations, and training of
employees.
Overseas, personnel responsible for exports at each business location conduct proper
management in cooperation with corporate headquarters to comply with the export control
regulations of each respective country.
There were no violations of such regulations in Japan or overseas during Fiscal 2016.

38

Export Control System
Index

Top Commitment

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Calsonic Kanseiʼs Global Anti-Corruption Policy

About Our
Reporting39

IndexGovernanceRisk Management
Top Commitment

Basic StanceOur Stance on
CSR

GlobalSystemStakeholder
Engagement

The Calsonic Kansei Group has established a Risk Management Committee in response to theglobal expansion of our business and the diversification of risk. This committee is composed of
Global Executive Committee (GEC) members and the executive in charge of General Support andHuman Resources serves as the Chairman. The PDCA cycle for risk management activities, which
includes the identification of major risks and the development of response plans, is thenGovernanceimplemented by the executives responsible for each business unit, functional division, and region.

Social Initiatives

Risk Management Promotion System
Environmental
Initiatives

GlobalSystemKey CSR
Indicators andResults

The Risk Management Committee globally oversees six product business units, eight functional
divisions, and six regions, and strives to conduct proper risk management by engaging in activities
that reduce or eliminate risks.

About Our
Reporting40IndexRisk Management Promotion System

Top Commitment

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Activities of the Risk Management Committee
Environmental
Initiatives

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

Key CSR
Indicators andResultsand strive to use them as opportunities to expand our business by ensuring an appropriate risk
level.
In fiscal 2016, the Risk Management Committee identified a total of four issues as potential majorrisks for the entire Group, namely, large-scale disasters, production continuity (supply risk), quality,

About Our
Reportingand China’s VOC restrictions*. The Committee then formulated measures based on an execution
plan, and evaluated the execution status and results of these measures.
In each region, in addition to taking steps to address major risks common to the entire Group
worldwide, the Committee identified risks unique to each region, formulated activity plans, andevaluated the results of the measures taken.
When a risk does materialize, the Committee will continue working to take swift and appropriate
action.
* China’s VOC regulations: Restrictions in China on emissions of volatile organic compounds (VOC) inside vehicle cabins41IndexTop Commitment

BCP Preparation

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

Our Stance on
CSR

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

Stakeholder
Engagement

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

Governance

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

Social Initiatives

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

Environmental
Initiatives

unable to return home following a disaster.

Key CSR
Indicators andResults

About Our
Reporting42Index

Basic Response in the Event of a Major Earthquake

Top Commitment

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting43

IndexDisaster Prevention Structure

Top Commitment

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

BCP Preparation Initial fire-fighting
training

Basic first aid training

44

IndexInformation Security

Top Commitment

Basic Stance
GlobalOur Stance on
CSR

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

Stakeholder
Engagement

strengthen information security, referencing matters such as incidents of information leaks bothwithin and outside the Group. We also conduct an ongoing annual in-house education program inan effort to spread awareness of and instill information security.
To ensure that the personal information of employees, business partners and other parties isadequately protected, we have developed Personal Information Management Regulations that

Governancestipulate matters including management systems, rules, and procedures based on laws, related
government ordinances, and other guidelines, etc., concerning the protection of personal
information. Personal information is thoroughly managed throughout the entire company inaccordance with these regulations.

Social Initiatives

Information Security Management Structure
Environmental
Initiatives

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

Key CSR
Indicators andResults

established an information security management structure with the vice president responsible forthe information systems department serving as the Chief Information Officer (CIO).
The CIO holds regular meetings of the Global Information Security Committee, to hold thenecessary discussions for ensuring the proper implementation of information security for the entire
Group. A Secretariat, comprising personnel from the information systems, general affairs, andAbout Our
Reportinghuman resources departments, has been established to serve as a dedicated information security
division and to assist the CIO.
In addition, the CIO plans and implements measures to ensure that internal regulations related to
information security run smoothly and efficiently.
At major overseas Group companies, we have established Regional Information Security
Committees and have introduced management structures equivalent to those at Calsonic Kansei.
These structures have full responsibility for information security at each company.

45

IndexInformation Security Management Structure

Top Commitment

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
ReportingInformation Security Education and Awareness-Raising
GlobalSystemA high level of awareness regarding proper information management by every employee isessential for information security compliance, so we are working to strengthen awareness ofcompliance. In addition to implementing security measures such as the management of digital data
access rights and restrictions on the use of external storage media, we are also conducting
activities to raise awareness among employees.

46

Education and Awareness Activities
Index

Initiatives

Details
Clarification of access rights through confidentiality classifications

Security measures

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

Top Commitment
Communication of awareness-raising messages by the responsible executives
Employee awarenessraising activities

Implementation of new employee education and regular employee education programs
Assessment

Our Stance on
CSR

Results of Employee Education
Stakeholder
Engagement

FY2014FY2015Training Participation rate

84%

FY2016
99%

100%

Governance

Activity ReportSocial Initiatives

Disaster Response Activities
Environmental
Initiatives

Japan
SystemKey CSR
Indicators andResults

Calsonic Kansei introduced a safety confirmation system in Fiscal 2014 and conduct safety training
based on annual safety training plans. These measures have been gradually introduced at Groupfacilities in Japan since Fiscal 2015.
In October 2015, we installed a groundwater membrane filtration system at the Calsonic Kansei
R&D Center and Headquarters to provide safe drinking water to employees who are unable to go

About Our
Reportinghome following a disaster, as well as nearby residents. This system can still provide drinking water
even if the public water supply system is disrupted.

Groundwater membrane
filtration system

Bags for supplying waterto neighboring residents

47

Some of the emergency
food stockpile

IndexTop Commitment

General training with local firefighting
agencies

Mock earthquake experience using anearthquake simulation truck

Our Stance on
CSR

Information Security Activities in Fiscal 2016
Stakeholder
Engagement

GlobalSystemThe Global Security Committee met twice and the Japan Region Information Security

GovernanceCommittee met four times in Fiscal 2016 to deploy new measures related to improving
information security and to share information on the status of audits.
Security measures: internal audit conducted on risks of information leaks
Employee awareness-raising activities: employee education provided with global standardized

Social Initiatives

content“Security Week” held with the aim of improving knowledge and awareness of security among all
employees on a global level
Distribution of a message by CEO, Hiroshi Moriya, and the responsible directors to raise

Environmental
Initiatives

awareness
Messages posted on intranet and display on wall posters to improve awareness of security

Key CSR
Indicators andResults

About Our
Reporting48

IndexSocial Initiatives

Top Commitment

Our Stance on
CSR

Stakeholder
Engagement

Social Contribution Activities
Governance

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

Social Initiatives

Quality Management
Creating Social Values through Innovations

Environmental
Initiatives

Key CSR
Indicators andResults

Respecting Human Rights
Creating an organization in which employees canparticipate actively
Protecting the Health and Safety of our Employees
Creating an Organization that Values the Individual and Diversity Fair
Treatment and Evaluation

About Our
Reporting

Human Resources Development to Expand Individual Capabilities
Promotion of Diversity
Promotion of Work-Life Balance
Employee Data

49

IndexSocial Contribution Activities
Basic Stance

Top Commitment

GlobalPolicyOur Stance on
CSR

From the perspective of building a sustainable society, it is incumbent on companies to build
mutually beneficial relationships with the various communities with which they come into contact
through their business activities. The Calsonic Kansei Group has long been focused onparticipating in and developing communities as a good corporate citizen. When planning andStakeholder
Engagement

implementing social contribution activities, we always consider how we can best leverage theGroup’s unique characteristics and knowledge and contribute to the development of local
communities and industries.

GovernanceFour Areas of Our Social Contribution Activities
Social Initiatives

GlobalPolicyEnvironmental
Initiatives

Calsonic Kansei is expanding its social contribution activities so that it may contribute to thedevelopment of a better society. In Fiscal 2016, we assessed the future directions of our activities,
and decided to strengthen and expand our social contribution activities on a global scale, with afocus on the following four areas.

Key CSR
Indicators andResults

About Our
ReportingSupporting the next
generation

SafetyEnvironment

50

CommunityIndexActivities Expenditure

CK

Top Commitment

Activity
From Since Fiscal 2015, Calsonic Kansei and its Group companies in Japan began a policy of
Our Stance on
CSR

have calculating calculated their expenditure on social contribution activities by separately for theindividual fields, as defined cited by the Japan Business Federation (Keidanren) One-Percent
Clubas examples of areas that should be addressed. Expenditure for FY2016 is anticipated to bearound \10 million, with the breakdown expected to be virtually the same as the previous fiscal

Stakeholder
Engagement

year.

Social Contribution Activities Expenditure
GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
ReportingSocial welfare andsocial inclusion￥200,000

1.8%

Health and Medicine,Sports￥550,000

5.1%

Education, including
social education￥5,234,000 48.5%

Culture and the arts

￥230,000

2.1%

Local Activities￥210,000

1.9%International
exchange andcooperation￥150,000

1.4%

Aid to DisasterStricken Areas
Environment

Other￥3,104,902 28.7%￥10,000

0.1%￥1,122,000 10.4%

51

IndexSupporting the Next Generation
Top CommitmentJapan
Our Stance on
CSR

Activity
Through the internal volunteer-run Team SKETT, Calsonic Kansei and its Group companies inJapan conduct a wide range of activities for to supporting children who will lead the future going
forward.

Stakeholder
Engagement

Governance

Developing Future Engineers
Social Initiatives

We provide elementary school students good opportunities to experience vehicle technology andmanufacturing with our hope that they become familiar with vehicles and Monozukuri.
We consider this activity as an opportunity for employee development, since they are able to learn

Environmental
Initiatives

Key CSR
Indicators andResults

the principles and fundamentals of the technologies they communicate to the children, at the sametime, children are able to gain an interest in Monozukuri

Participation in Kids Engineer
Team SKETT has participated in Kids Engineer, a hands-on exhibition for elementary
schoolchildren organized by the Society of Automotive Engineers of Japan, Inc., since theinaugural event in 2008.

About Our
Reporting

In Fiscal 2016, Team SKETT participated in Kids Engineer 2016, held in Yokohama in August, andin Mini Kids Engineer in Tohoku, held in the Tohoku region in November.
More than 4,000 participants learned about the enjoyment of Monozukuri at these events.

52IndexTop Commitment

Our Stance on
CSR

Stakeholder
Engagement

Governance

Number of Participants Attending Kids Engineer (2016)

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

More than

4,000

participants attended
About Our
Reporting

Traveling Classrooms for Elementary Schools and Craft
Workshops
Since 2012, Calsonic Kansei has been delivering which was launched in 2012, provides special
science lessons for elementary schools.
In Fiscal 2016, it conveyed the fun of science to more than 800 students at more than 16
elementary schools.
We also hold craft workshops at local children’s halls and community centers to give children theopportunity to experience first hand the fun of making things.

53

IndexTRAVELING CLASSROOMS FOR ELEMENTARY SCHOOLSTop Commitment

Our Stance on
CSR

Traveled tomore than

16

More than800

school students participatedelementary schools
Stakeholder
Engagement

GovernanceSocial Initiatives

CK
Activity

Support for the Highschool International Conference Committee
Calsonic Kansei also supports the Highschool International Conference Executive Committee, an
NGO run by high school students based mainly in the Kanto region, as part of our efforts toEnvironmental
Initiatives

support children that who will lead the future.
Approximately 25 high school students participated voluntarily at in the 7th Highschool
International Conference, held in December July 2016 on the theme of “The World We See,” andapproximately 50 students participated in the 8th Conference, held in March 2017 on the theme of

Key CSR
Indicators andResults“International Cooperation.” The participants listened to the stories of a number of guests studying
in countries abroad, after which they each chose a country they wanted to study in and developed
an activity plan for that country. The participants deepened their knowledge by listening to lectures
given by experts and to the stories of university students about their own experiences, and held

About Our
Reportingdiscussions among themselves about future challenges and what actions they themselves couldtake.
We will continue supporting this committee in the hope that it will lead to the further enhancement
and expansion of activities and to the development of global human resources capable of leading
the future.

Eighth Highschool International Conference54IndexSupport for the Student Formula Japan Competition
Calsonic Kansei is involved participates in the running of and supports Student Formula Japan(SFJ), a competition held since 2003 under the sponsorship of the Society of Automotive

Top Commitment

Engineers of Japan (JSAE), providing steering committee members and operational staff. The
competition is an opportunity for students to develop skills related to manufacturing, which in turncontributes to the development of the Japanese automotive industry. It serves as a public-interest
activity for self-motivated students to cultivate various skills involved with manufacturing, and as

Our Stance on
CSR

training for those who will one day play critical roles in the future of the automotive industry We
also interact with students by exhibiting our products at the SFJ venue and support the nurturing of
the engineers of the future. The students are the stars of this event, pitting their Monozukuri skills
against each other with vehicles they have conceived, designed and built themselves. The main

Stakeholder
Engagement

objective of SFJ is to nurture professional individuals who will contribute to the development andpromotion of automotive technology and industry, with the support of industry, academia, andgovernment.

GovernanceCommunity
Social Initiatives

Environmental
Initiatives

Installing Groundwater Membrane Filtration System
CK
Activity

Key CSR
Indicators andResults

In October 2015, a groundwater membrane filtration system was installed at the R&D Center andHeadquarters. The system draws up groundwater and subjects it to sophisticated filtering
treatment to create safe potable water. Without impacting the water flowing beneath the surface ofthe earth, this enables a dual supply of water from the public water supply and the groundwater.

About Our
ReportingIn times of disaster when the public water supply cannot be usedis unavailable, the system also
provides a “water lifeline” of drinking water. We also plan to make the drinking water available topeople neighboring residents in the neighborhood during any region-wide water outages.

Groundwater membrane filtration systeminstalled at R&D Center and Headquarters

55

IndexEnvironmental Communication
Japan
Activity

Top Commitment

In November 2015 Calsonic Kansei held an Environmental Communication gathering at the R&D
Center and Headquarters with the local residents’ association and people associated with thecompany in order to discuss its environmental activities.

Our Stance on
CSR

With 32 participants, including members of the neighboring residents’ association, companies andlocal government, we spent four-and-a-half hours introducing examples of our business activities
and efforts for the environment, and then showing our guests around the factory and having a freeexchange of opinions. Many of the participants expressed a desire for closer links with our

Stakeholder
Engagementcompany, which showed us the high expectations our neighbors have of us. We plan to hold thisevent every two years.

Our Group companies in Japan are already holding these Environmental

Communication gatherings with their neighbors as well.
We are also pursuing the promotion of field trial activities for electric vehicles (EV), through ourparticipation in the E-KIZUNA Summit, and are engaged in promoting the popularization of EV.
GovernanceSpecifically, we have introduced “Workplace Charging,” which allows employees and visitors tocharge their EV at the workplace, and we have also installed rapid charging facilities outside the
Headquarters entrance for locals to use free of charge.

Social Initiatives

Environmental
Initiatives

Environmental Communication Meeting
Key CSR
Indicators andResults

About Our
Reporting56

IndexAs a Good Corporate Citizen
GlobalBoth in Japan and overseas, we aim to contribute to local communities as a good corporate citizen

Top Commitment

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

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting57

IndexChina Region

Creating a Beautiful Local Environment
Top Commitment
Calsonic Kansei (Guangzhou) Corporation Dalian Branch

Earth Day participants
Our Stance on
CSR

Employees Uniting as One to Actively Pursue Initiatives
Stakeholder
Engagement

To contribute to the realization of a sustainable society, growing our business together with society
is essential. To achieve this, we are undertaking a variety of global environmental initiatives, suchas the efficient use of energy, roads and park clean-up drives, and forest maintenance.
In China, March 12 is designated “Tree-planting Day.” On Tree-planting Day in 2017, managers

Governancefrom the various departments of Calsonic Kansei (Guangzhou), including accounts, humanresources, finance, general affairs, and production, gathered to plant a total of six trees, such as
sweet osmanthus, moutan peony, and camphor trees, around the plant gate and in front of thecafeteria. These trees have been imbued with the intentions of encouraging employees to “develop

Social Initiatives

a mindset of nurturing nature,” and to “grow together with trees we have planted.”
On Earth Day on April 22 every year, Calsonic Kansei (Guangzhou) Corporation Dalian Branchencourages employees to express their appreciation for the Earth, for the protection of thebeautiful environment. The theme for Fiscal 2016 was “environmentally friendly commuting toEnvironmental
Initiatives

Key CSR
Indicators andResults

reduce CO2 emissions.” On that day, employees who usually drive their own car to workcommuted by bus, bicycle, or on foot.

Expansion of Initiatives Through Stronger Global Collabora-tion
Our sites in China have only just begun engaging in CSR initiatives, but by collaborating with
Global Headquarters and each other, they will work to strengthen their initiatives further.

About Our
Reporting58

IndexAmericas Region

Building Homes, Communities, and Hope
Top Commitment
Calsonic Kansei North America, Inc.
Technical Resource Management
Design Engineering Manager

Shawn Ryan
Our Stance on
CSR

Benefiting the Local Community
Stakeholder
Engagement

In Fiscal 2016, Calsonic Kansei North America Technical Center (CKNA MI) participated in several
Habitat for Humanity* events to benefit the local community of Metro Detroit.
* An international non-governmental organization that addresses housing problems in more than 70 countries throughout the world,

Governancewith the vision of “a world where everyone has a safe and decent place to live.”

Civic Pride and Social Responsibility
Social Initiatives

The DE Management team kicked off these events by working together on a future home for a
local family. Several of the DE groups did smaller scale projects that promoted a sense of teambuilding. The final project was a group of DE team members from different communities coming
together to support the Rock the Block community event. The aim of this event is to revitalize theEnvironmental
Initiatives

region and benefit families, individuals, and veterans in need.
CKNA MI has shown a strong sense of civic pride and social responsibility through its participationin these events, and we hope to continue to support this cause in the future.

Key CSR
Indicators andResults

About Our
Reporting59IndexAsia Region

All Employees United to Engage in Social Contribution andEnvironmental Conservation
Top Commitment

Calsonic Kansei (Thailand) Co., Ltd.

Employees Representative Group

Our Stance on
CSR

Stakeholder
Engagement

Recycling to Help Make Prosthetic Limbs More Affordable
With nearly 2,000 employees, the CKT workplace generates a large volume of recyclable waste
such as cans every day. This waste is usually sold to recycling operators as scrap, but we decided
that we could put the pull-tab rings to good use to help those in need.

Governance

These recycled pull-tab rings are used to make prosthetic limbs. Due to the high cost of newmaterials used to make prosthetic limbs, they are hard for the less economically well-off to afford.
Our donation of pull-tab rings has made it possible to manufacture prosthetic limbs in Thailand,
without the need to import them.

Social Initiatives

Protecting the Environment Through Tree-planting
Environmental
Initiatives

In December 2015, CKT President, along with representatives of the CKT staff, conducted a treeplanting ceremony in honor of the 88th birthday of His Majesty King Bhumibol Maharaj. This was a
joint initiative with companies in the Amata Nakorn Industrial Estate, where CKT’s plant is located.
3,000 trees have been planted in the area around the new road linking Bangkok and Chonburi

Key CSR
Indicators andResults

Province, contributing to the mitigation of environmental issues.

About Our
Reporting60

Respecting Human Rights
Index

Respect for Human Rights across
Our Supply Chain

Top Commitment

Basic StanceOur Stance on
CSR

GlobalPolicyStakeholder
Engagement

With a sincere recognition of the global trends in human rights and labor, the Calsonic KanseiGroup respects the complete diversity and human rights of its officers and employees alike, andhas an established policy of non-tolerance of discrimination and harassment.
Respect for diversity and human rights is clearly stated in the Calsonic Kansei Code of Conduct.

GovernanceOur position of not tolerating sexual harassment or any other forms of harassment in the workplaceis also stated clearly in our Basic Policy on Human Rights and the Key Policy on Human Rights.
We strive to prevent such harassment to ensure that no harm comes to any of our employees
regardless of their gender.

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

We are also engaged in the thorough consideration of human rights and labor not only amongst
our own employees, but also in our supply chain.

Global Code of Conduct for Calsonic Kansei Group

Human Rights Policy

About Our
ReportingGlobalPolicyOn April 1, 2016, the Calsonic Kansei Group published the Basic Policy for Human Rights and the
Key Policy on Human Rights, which apply to its employees as well as people in its supply chain. In
consideration of the Calsonic Kansei Group’s global activities and of the requirements of society,these policies support various human rights international covenants such as the International Bill of
Human Rights (Universal Declaration of Human Rights, the International Covenants on Human
Rights), the Guiding Principles on Business and Human Rights, the UN Global Compact, and theILO Declaration on Fundamental Principles and Rights at Work. The policies will be revised asneeded in the future.

Basic Policy for Human Rights

61IndexTop Commitment

Human Rights Due Diligence in the Supply Chain

GlobalActivity
We conducted a trial human rights due diligence questionnaire of our major suppliers. The

Our Stance on
CSR

comments received and outcomes of that questionnaire have been reflected in the questionnaire
and a full-scale survey will be conducted in Fiscal 2017.

Stakeholder
Engagement

GovernanceSocial Initiatives

Human Rights Education and Training
Environmental
Initiatives

Japan
Activity

Key CSR
Indicators andResults

Calsonic Kansei and its Group companies in Japan are engaged in raising awareness abouthuman rights among their employees.
In 2016, topics related to human rights were raised in the following channels.

About Our
ReportingCompany CSR Newsletter

Company Newsletter

CSR in-house e-learning(Printed learning materials distributed
toemployees without Internet access)62

Posters displayed in company
workplaces

Index

Message from the corporate officer

Intranet notices

responsible for human resources

about Human Rights Week

posted on the Intranet during Human
Rights Week

Top Commitment

In-house training for purchasing

New employee induction training

departments ★

(approximately 120 trainees) ★

Our Stance on
CSR★

Stakeholder
Engagement

CK only

Two harassment-related incidents occurred in 2016 and were subject to disciplinary action
according to our corporate regulations. We have already incorporated these examples of violations
into our human rights education and training programs, and we continue to make efforts to preventthe recurrence of such incidents.

Governancewe actively plan to provide human rights education and training to all of our employees,including
those of overseas Group companies.

Social Initiatives

Environmental
Initiatives

A seminar for new employees
Key CSR
Indicators andResults

About Our
Reporting63

IndexEurope Region

For the Protection of Human Rights, Including Our Supply
Chain
Top Commitment

Calsonic Kansei Europe plc.
Corporate Office Section Leader

Karen Myring

Our Stance on
CSR

Stakeholder
Engagement

What is the UK Modern Slavery Act?
The UK government passed the Modern Slavery Act in March 2015. The Act includes a“Transparency in Supply Chain Provision,” which requires organizations with a business or part ofGovernancea business in the UK with a turnover of £36m (approx. ¥5.04 billion)*1 or more to publish an annual
Modern Slavery Statement on their website, addressing slavery and human trafficking, thatencompasses not only the organization itself but also its supply chain.

Social Initiatives

A Serious Problem Caused by Global-ization
Modern slavery has become a serious problem on a global scale, with international human rights
organization, Walk Free Foundation, estimating that there are some 45.8 million people*2 inEnvironmental
Initiatives

modern slavery throughout the world. With the globalization of supply chains, corporations arebeing called on to take responsibility not only for what happens in their own company, but for theentire supply chain associated with their products.

Key CSR
Indicators andResults

About Our
Reporting

Development of Human Rights Policy that also Encompasses
Supply Chain
Prompted by this situation, the Calsonic Kansei Group began development of our own global
human rights policy, which was formally established on April 1, 2016. The policy declares that theGroup’s employees, as well as our supply chain, will respect international standards and strive toprotect basic human rights.
In accordance with the Modern Slavery Act, Calsonic Kansei Europe (CKEU), the Group’s U.K.
subsidiary, collaborated with Global Headquarters (GHQ) and the relevant subsidiaries to publish
an annual statement in September.

64

IndexIdentifying Existing Initiatives and Necessary Actions
Our first task was to conduct research into the best industry practice. We studied a wide range ofmaterials including government papers, NGO guidance and benchmark studies into the CSR and

Top Commitment

Sustainability practices of major automotive manufacturers and suppliers.
Using the results of our research, we prepared a detailed questionnaire containing almost 100
indicators of good/poor internal controls, policies, procedures or practices. This questionnaire wascirculated to CKEU and GHQ departments on the basis that our statement needed to cover our

Our Stance on
CSR

entire supply chain.
The subsequent replies allowed us to understand where we already had good procedures, where
we had room for improve-ment, and where we need to implement new measures.
Our activity identified many controls already in place to ensure that modern slavery practices do

Stakeholder
Engagement

not occur within our own business, including employment contracts and our Code of Conduct.
Within our supply chain we could also identify some good practices with our 2nd tier suppliers,
such as site visits to observe supplier conditions and contractual obligations included in their
supply contracts.

GovernanceA special feature article on the issue appeared in the CKEU Newsletter, and we are conducting a
range of activities to educate people within the company.

To Fulfill Our Global Responsibilities
Social Initiatives

Our activity identified that there is still room for improvement, especially in the area of our supply
chain. Improvement ideas have been developed and have been included in the statement. Goingforward, we will expand our initiatives on a global scale beyond the U.K. to prevent forced labor,
Environmental
Initiatives

human trafficking and illegal child labor. Specifically, we plan to conduct due diligence of our supply
chain, distribute Supplier CSR Guidelines seeking our suppliers’ cooperation in CSR endeavors,
and conduct educational programs to promote understanding within the company.

Key CSR
Indicators andResults*1: Calculated at £1 ≒ ¥140

*2: Modern Slavery Index 2016, published by international human rights organization, Walk Free Foundation

About Our
Reporting65For a Safe, Reliable, and Comfortable Automotive Lifestyle
Index

Together with our Business
Partners

Top Commitment

Basic StanceOur Stance on
CSR

GlobalPolicyStakeholder
Engagement

Calsonic Kansei considers its suppliers to be equals, and aims for mutual sustainable growth while
maintaining equal and fair relationships based on mutual trust. With the globalization of the
Calsonic Kansei Group’s business, its supply chain is also expanding globally. At this time, we aim
to improve our CSR management by sharing our ideas and policies with our business partners inorder to promote our CSR activities.

GovernanceParticularly in the case of overseas business partners, we share our CSR policies and actively
promote local procurement to generate employment opportunities. In 2016, the percentage of local
procurement was approximately 80%.

Social Initiatives

Environmental
Initiatives

Promotion of Socially Responsible Procurement
GlobalKey CSR
Indicators andResults

SystemThe Calsonic Kansei Group is committed to transparent, fair, and impartial business processes
when selecting business partners. Providing opportunities for broad participation, regardless ofnationality, company size, and trading track record, Calsonic Kansei reviews the details of

About Our
Reportingproposals from business partners across the relevant departments when making its selections.
In actual trading as well, we comply with the Global Code of Conduct for Calsonic Kansei Group to
maintain the performance of equal and fair work of a high standard. We hold briefing sessions on
the Group’s policies and regular liaison meetings in which we communicate with business partners
through surveys and exchanges of opinion. Furthermore, as a compliance initiative, we haveworked to spread awareness within the company about important points related to procurement
principles, the Subcontractors Act, and the Antimonopoly Act. For major business partners, wehave held CSR briefing sessions and requested cooperation with the Group’s activities.
In Fiscal 2016, we strengthened our internal systems related to CSR and to human rights, laborand environmental issues that are attracting increasing attention around the world. We also
conducted a trial questionnaire survey as part of our supplier due diligence. Based on theoutcomes of that trial, we will conduct further surveys on a wider scale into the future.

66

Index

Seeking Cooperation with CSR

GlobalTop Commitment

PolicyIn the briefing session on Calsonic Kansei Group’s policies held in February 2011, we explained
Our Stance on
CSR

our CSR to major business partners and requested their cooperation with our initiatives.
In particular, we asked for their compliance with laws and regulations, and gave clear indications ofmeasures to be taken in the event of compliance violations, as part of our efforts to prevent repeat
violations. Since Fiscal 2011, we have included “Compliance with Laws and Regulations” in our

Stakeholder
Engagement

basic supplier agreement and have reflected this in agreements with new business partners.
In Fiscal 2015, we developed the Calsonic Kansei CSR Guidelines for Suppliers (available inJapanese and English) and rolled them out to our major business partners. We are planning to rollout a revised version of the Guidelines in Fiscal 2017. Going forward, we will request our suppliers’

Governancecontinued cooperation with our CSR initiatives.

Calsonic Kansei CSR Guidelines for Suppliers
Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Response to Conflict Materials

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

About Our
Reportingtheir entire supply chain. In response to these social demands, Calsonic Kansei and

its Groupcompanies in Japan formulated a “Policy for Addressing Conflict Minerals” from the perspective oflimiting human rights violations in conflict regions, and began addressing this issue in line with thatpolicy, including surveys of its suppliers in 2012.

Action against Conflict Minerals

67IndexSupply Chain Survey in Response to Conflict Materials
GlobalActivity

Top Commitment

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

Our Stance on
CSR

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

Stakeholder
Engagement

A preliminary survey of suppliers was conducted between October and December 2012 (40companies).
A full survey was conducted from 2013 (224 companies in Fiscal 2013; 288 companies in Fiscal
2014; 285 companies in Fiscal 2015).

GovernanceSocial Initiatives

284 companies were surveyed in Fiscal 2016, with a response rate of 83%.

Promoting Calsonic Kansei Green Procurement

Environmental
Initiatives

GlobalPolicyThe Calsonic Kansei Group procures various items such as raw materials, supplementary

Key CSR
Indicators andResults

materials and component parts, and believes that the management of those procured goods isimportant for the control of environmentally hazardous substances.
In accordance with the Calsonic Kansei Group Environmental Policy, in 2008 we issued theCalsonic Kansei Green Purchasing Guidelines (partially revised in October 2014) as the standard

About Our
Reportingfor environmental activities among business partners. In addition to requesting cooperation withthose Guidelines, we also worked together with our business partners to conduct surveys ofcomponent substances of procured goods to verify their compliance with the International Material
Data System (IMDS) and the Safety Data Sheet (SDS), etc.
Further, we investigate whether our business partners have acquired ISO 14001 or any equivalentcertification for their environmental management systems, to work on improving our control ofenvironmentally hazardous substances.

68IndexTop Commitment

Supply Chain BCP Maintenance

GlobalSystemThe Calsonic Kansei Group has developed a Business Continuity Plan (BCP), available in

Our Stance on
CSR

Stakeholder
Engagement

Japanese, English, Spanish and Thai, and conducts activities for quick initial response.

Monozukuri Improvement Activities in Cooperation with
Business Partners

Governance

GlobalSystemSocial Initiatives

In FY2009, Calsonic Kansei and its Group companies in Japan established a dedicated SupplierSupport Team (SST) within the Calsonic Kansei Purchasing Department with the aim ofstrengthening the Monozukuri characteristics of our business partners and enhancing our working
relationships with those partners. With the consent of the business partners, this team pursues

Environmental
Initiatives

joint activities for workplace improvement through the Calsonic Kansei Production System (CKPS).
Also, with the consent of our business partners, we share examples of improvements with otherbusiness partners through events and exhibitions. In this way, we are creating an environment inwhich we can expect further energization of this initiative going forward. In Fiscal 2016, we

Key CSR
Indicators andResults

conducted related activities with four business partner companies.
In Fiscal 2013, we began a program of calculating the level of our business partners’ contributions
to the environment. We do this by measuring the reductions in CO2 emissions that result from theirimprovements to environmental issues, an area of growing concern, as a means of quantitatively

About Our
Reportingconfirming the effects. By clarifying the link between improvement activities and environmental
burden, we are seeking to improve awareness of environmental issues among our business
partners while promoting joint activities to expand their scope.

69

IndexTop Commitment

Supplier Award System

Japan
Activities
Every year, we select and award business partners that have contributed to the development of the

Our Stance on
CSRbusiness of Calsonic Kansei and its Group companies in Japan. Based on the selection criteria
decided by the Calsonic Kansei Group, the Quality Division selected two companies for
Outstanding Supplier Awards and one company for a Quality Improvement Award, based on theirperformances in Fiscal 2016. The Purchasing Division also has its own awards program for

Stakeholder
Engagement

excellent suppliers, presenting Outstanding Supplier Awards to five companies in 2016. We willcontinue to award outstanding suppliers in this manner into the future.

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting70For a Safe, Reliable, and Comfortable Automotive Lifestyle
Index

Quality Management

Top Commitment

Basic StanceOur Stance on
CSR

GlobalPolicyThe Calsonic Kansei Group is focused on quality as an essential element required to meet the
expectations of a range of customers, from improving performance to ensuring safety andStakeholder
Engagement

reliability, and achieving comfort. We consider the maintenance and improvement of quality to be
one of the most important issues for the company as a whole, and aim to contribute to society andto be a company that is trusted by its customers, by continuing to provide high quality in allprocesses, including development, design, production, and logistics.

Governance

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

Environmental
Initiatives

Key CSR
Indicators andResults

Quality Management System

GlobalSystemIn order to achieve the best quality in the world to satisfy our customers, the Calsonic Kansei

About Our
ReportingGroup’s product business units, manufacturing sites (regions) and global functions work together
towards Monozukuri innovation. Because human resources development and teamwork are thefoundations of Monozukuri innovation, values related to human resource development and crossfunction and cross-region initiatives are shared globally as the CK WAY.
Specifically, in addition to collaboration between the global functions and individual businessdivisions, we have optimal quality assurance systems for each country/region and business. Thesesystems are implemented through regular meetings with our production locations around the world.
In addition, based on the Calsonic Kansei Production System (CKPS), we have developed the
Global Quality Management System (Global-QMS) and we are working to further improve quality
and improve cost competitiveness.

71IndexTop Commitment

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Global Evaluation System for Quality Management

GlobalSystemTo achieve our basic quality policy on a global level, the Calsonic Kansei Group has established its
own Quality System Evaluation System (QSES), and we conduct evaluations of the quality

About Our
Reportingsystems and process management of the entire company and its business partners.
Through a repeated process of identifying problems, taking corrective actions, and making
improvements through the QSES, we constantly maintain even higher standards 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 are working to reduce inconsistencies between
evaluations in all plants and to promote the understanding of actual conditions and workplace
improvement activities.

72IndexTop Commitment

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Quality Education and Awareness
Environmental
Initiatives

GlobalSystemKey CSR
Indicators andResults

Q-Forum
About Our
Reporting

We hold the Q-Forum annually as part of our quality awareness activities. We also organize avariety of events, such as presentations of examples of activities to prevent recurrences of quality
defects and displays of actual defective items, presentations of quality improvement, and supplierquality seminars, to encourage each and every individual to reflect on their awareness and actions
regarding quality and to make new discoveries. Through this, we aim to raise the standard of
quality awareness and actions, with the ultimate goal of improving quality.

QC Circle Global Convention
All regions work on QC circle activities to promote quality improvement activities on the shop floor.
Best practice presentations of quality improvements are given at annual QC circle global
conventions held at our headquarters, to encourage friendly competition between regions and toraise motivation for further quality improvement.

73

IndexTop Commitment

Initiatives to Improve Quality and Reliability

GlobalSystemOur Stance on
CSR

ISO/TS 16949 Quality Standard Certification
The Calsonic Kansei Group also works to improve our technological strengths in evaluation, which
underpins our development quality.

Stakeholder
Engagement

Our air-conditioning business unit received certification for ISO/TS 16949, a new quality standard
for the automotive industry, in 2003, making us one of the first automotive parts manufacturers to
do so. In 2005, this certification was obtained for all Group companies for all products.
With the transition to the new quality management standard, IATF 16949, all global locations are

Governancecurrently engaged in activities to obtain certification.
Further, to ensure appropriate levels of quality, we have replicated the world’s market
environments through state-of-the art equipment and experimental evaluation technologies in thetechnical field of safety, environment and comfort from the customer’s perspective, ensuring a highSocial Initiatives

level of development quality in the four levels of vehicles, systems, components, andelements/materials.

Environmental
Initiatives

Experimental evaluation technologies that underpin development
quality

Key CSR
Indicators andResults

Safety/Durability

Environment

Comfort

EMC anechoic chamber(vehicle & Units)

Exhaust gas emission andfuel consumption evaluation

Air conditioning
performance evaluation

Complex thermal shock
evaluation

Inverter performance
evaluation

Squeak & Rattle noise
evaluation

Safety performance
evaluation

Multi-axial Vibration
simulator

Air conditioner systemevaluation

About Our
Reporting

VehiclesSystems

74

IndexTop Commitment

Our Stance on
CSR

Safety/Durability

Environment

ComfortCompressor durability
evaluation

EGR cooler performance
evaluation

Silent air supply system

High-temperature thermal
durability evaluation

3D scanning vobrometer

PIV system

Components

Stakeholder
Engagement

Element/Material Evaluation/Analysis
GovernanceSocial Initiatives

Environmental
Initiatives

X-ray CT scanner

VOC evaluation

Scanning acoustic
tomography (SAT)

Field emission electronprobe microanalyzer

Electron microscopeHigh temperatureobservation equipment

Elements/
Materials

Key CSR
Indicators andResults

About Our
Reporting

Implementation of Novelty and Materiality Assessments
The Calsonic Kansei Group reveals risks through assessments of the novelty and materiality of
new products from the design concept phase. Depending on the results, dedicated reviewers thenconduct design reviews and process design reviews with the aim of improving the safety andreliability of our products. In Fiscal 2016, 664 reviews were conducted and no product safetyrelated issues were found. Furthermore, in pursuit of continuous Monozukuri innovation, theProduction Engineering Center develops new manufacturing methods, verifies prototypes andestablishes global standards. It works to achieve drawing and production processes based on theprinciples and fundamentals of manufacturing, placing value in teamwork.

75Index

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

Top Commitment

Automotive
manufacturer

Awards Received

Award Category

Nissan Motor Company

Japan Regional Quality Award

Vehicle Systems Category, Heat
Exchange System Section

Nissan Motor Company

Certificate of Appreciation for Excellent
Quality, Japan Region

CPM & Interior Business Unit

Nissan Motor Company

Certificate of Appreciation for Excellent
Quality, Japan Region

Com pressor Business Unit

Nissan Motor Company

Supplier Quality Award

CKRO

Isuzu Motors Ltd.

Excellent Quality Award

Calsonic Kansei Corporation

Nissan Motor Company

Japan Regional Quality Award

Vehicle Systems Category, Heat
Exchange System Section

Nissan Motor Company

Certificate of Appreciation for Excellent
Quality, Japan Region

CPM & Interior、Exhaust System
Business Unit

FY2014

Nissan Motor Company

Certificate of Appreciation for Excellent
Quality, Japan Region

Exhaust System、Com pressor
Business Unit

FY2012

Nissan Motor Company

Japan Regional Quality Award

Vehicle Systems Category, Heat
Exchange System Section

FY2011

Nissan Motor Company

Japan Regional Quality Award

Vehicle Systems Category, Climate
System Section

FY2010

Dongfeng Nissan Motor
Corporation

Excellent Quality Improvement Award

Calsonic Kansei (Guangzhou)
Components Corporation

Our Stance on
CSR
FY2016

Stakeholder
Engagement

FY2015GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting76

For a Safe, Reliable, and Comfortable Automotive Lifestyle
Index

Creating Social Values throughInnovations

Top Commitment

Foundation of Monozukuri that Supports Eco-Friendly
Products
Our Stance on
CSR

To maintain its industry-leading foundation for Monozukuri, the Calsonic Kansei Group actively
adopts advanced methods and techniques and relentlessly strives towards improvements in
Stakeholder
Engagement

reliability. Moreover, in recent years, with an awareness of the rapidly advancing computerizationof automobiles and market globalization, we are globalizing our R&D structure and investing intechnology development in leading-edge fields.

GovernanceUsing Advanced Methods and Techniques to Improve ProductDevelopment Quality and Achieve Higher Efficiency
The Calsonic Kansei Group develops technologies for various forms of computer-aided

Social Initiatives

engineering (CAE) and uses CAE in a variety of situations in order to improve development quality
and achieve higher efficiency. In addition to simulations of product performance and development,
we also develop and use CAE in a variety of manufacturing areas, including resin flow, casting,

Environmental
Initiatives

Key CSR
Indicators andResults

and plastic molding.

Compressor vibration analysis

Cockpit module lower limb failure
value analysis

Instrument panel resin cooling
analysisHeat exchanger thermal stressanalysis

Power module solder thermal fatigue
analysis

Meter electronic substrate ElectroMagnetic Compatibility (EMC)
analysis

Sirocco fan airflow noise analysis

Air-conditioning system cooling
performance analysis

Vehicle interior demisting
performance analysis

About Our
Reporting

Ensuring High Product Reliability
In the fields 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 from the customer’s perspective in the three levels of vehicles, systems,

77and components. We ensure that our reliability assurance process is carried out without fail, in
pursuit of developing products that are safe, durable, and that satisfy our customers.
Index

Top Commitment

Development Quality Assurance on Four Levels

Our Stance on
CSR

Development Quality Assurance on Four Levels
Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting78

IndexTechnical Innovations and R&D Structure
Top Commitment

The Calsonic Kansei Group is promoting a Global Formation Shift (GFS) for effective investment
management of global technological development in order to improve the efficiency of ourtechnical development investments in the future.
Our Stance on
CSR

Key Points for a Stronger R&D Structure
Enhancement of Global Development Functions
Stakeholder
Engagement

Promoting R&D work transfer from Japan by nurturing existing development centers in the
United States, Mexico, the United Kingdom, France, and China
Utilization of Offshore Development Centers; Development of Global Information Platforms

GovernanceImprovements to the added value of development functions in Japan
Significant Increases in High-Value-Added Businesses such as Research and Advanced
Development

Social Initiatives

The volume of high-added-value businesses is forecast to expand by 1.7 times
Prevent Increase of Excess Development Costs by Promoting GFS and the Use of LCC
Engineering Resources

Environmental
Initiatives

Key CSR
Indicators andResults

Establishment of Materials Testing Center in India (CECI L&T)

Strengthening R&D Structure

About Our
Reporting

Application Development

R&AE

HCC

LCC

Constructing a Global Technical Development Structure
The Calsonic Kansei Group constructed the world’s first global Product Data Management (PDM)
system capable of sharing large amounts of data via the Internet with high reliability, at highspeeds and low cost. This system enables central management of product data (3-D data,
drawings) and is effective in shortening the time required for global production deployment andquickly incorporating local requirements into designs.
Connection to this system has been completed at our locations in the United States, the United
Kingdom, France, and China, and we plan to introduce it in India in Fiscal 2017.

79

IndexTop Commitment

Our Stance on
CSR

Stakeholder
Engagement

Governance

Headquarters
Social Initiatives

Innovations for Better Energy Efficiency

Calsonic Kansei Corporation
Chief Engineer, Environmental Technology Development Group, Global
Technology Headquarters

Environmental
Initiatives

Satoshi Kimura

Key CSR
Indicators andResults

About Our
Reporting

As a Control Tower Responsible for Improving the Energy
Efficiency of Cars
I am responsible for advance development of energy management products to improve vehicle fuelefficiency in the Environmental Technology Development Group. Advance development refers todevelopment that creates something where previously there was nothing. We develop leadingedge products that answer questions such as how far we can minimize the energy used byautomobiles, how we can ensure comfort with limited energy, and how we can use renewableenergies efficiently.
Energy is what keeps automobiles moving, and not a single drop of fuel can be allowed to go towaste. However, only about 30% of the gasoline and other energy used in automobiles is used toactually move the automobile. The rest is consumed by the air-conditioning, to power accessories,
and on friction. The fact is that about 50% of that energy is being lost to the atmosphere.
As a supplier of heat exchange products, climate-control products, and exhaust products, theproducts we supply to our customers, the automotive manufacturers, are connected with therelease of energy by automobiles. In other words, we are a supplier and developer of products that
control a large proportion of vehicles’ energy. As a control tower that strives to improve overall
energy efficiency, we are able to contribute to the realization of a sustainable society.

80One example of advance development is our heat exchange product, the EGR Cooler, which cools
the very hot exhaust gases and returns them to the engine to increase engine efficiency. This
Index

reduces pumping loss, prevents knocking, and contributes to improved fuel efficiency. With the
adoption of VG (Vortex Generator)-FINR technology, which improves the heat-transfer coefficient,
we were able to supply a product that, offers better performance in a smaller, more lightweightform. Also, by combining it with a charge air cooler to control air intake temperature, we are

Top Commitment

developing this technology as a key technology for raising engine combustion efficiency. A charge
air cooler cools compressed air and raises air density. That high-density compressed air serves toraise the engine’s combustion efficiency, leading to improved engine output. Raising the density of

Our Stance on
CSR

the air taken in by the engine raises fuel efficiency.
We have also participated in the NEDO* project, “Research and Development of Innovative
Technologies for Using Unused Heat Energy.” We began the development of a system that used
waste heat to operate the air conditioning in 2013, and have reported on our progress every year.

Stakeholder
Engagement

GovernanceAchievement of Our Target for the Creation of Eco-friendly
Products
Our Mid-Term Management Plan, which ran until 2016, under the “Green” part of the 4 Gs, we had
a target of creating ten world-leading eco-friendly products, and, through our development
activities, we succeeded in creating ten products as planned. Going forward, as the electrificationof cars for the reduction of CO2 emissions picks up pace, we will need to take a comprehensive

Social Initiatives

view of the two forms of energy, heat and electricity, and manage them accordingly.
(1) Thermal Energy Management
Thermal management aimed at improving powertrain efficiency and cabin comfort throughEnvironmental
Initiatives

temperature optimization.
(2) Electrical Energy Management
Systems for the efficient creation, storage, and supply of electrical energy.

Key CSR
Indicators andResults

We will set up a cross-functional team (CFT), spanning the departments that deal with these twoforms of energy management, to create products with even more appeal.

Creating New Value With World-first Products
About Our
ReportingCalsonic Kansei is currently in the midst of a major transition. For our company to grow as asystems supplier, we need to create further innovation. We will need to devote even more efforts toresearch and development and collaborate with a variety of companies, as well as forming
industry-academia collaborations. You can look forward to us leveraging our proprietary
technologies for the creation of new social value and sending world-first products out into theworld.
* New Energy and Industrial Technology Development Organization

81

IndexTop Commitment

Our Stance on
CSR

Creating an Organization in which Employees Can Participate Actively

Protecting the Health and Safety of
our Employees
Global Basic Policy of Health and Safety

Stakeholder
Engagement

Health and Safety Structure
Governance

System for Occupational Health and Safety Activities
Japan
Social Initiatives

SystemCalsonic Kansei and its Group companies in Japan have established annual targets for various
indicators related to health and safety, and work to ensure the health and safety of our workplaces

Environmental
Initiatives

and employees under the supervision of the health and safety management administrator for eachfacility. At the annual Central Health and Safety Committee meetings, we look back on the results
for the year and confirm the main activities and targets for the entire Group for the new fiscal year.
In Fiscal 2016, based on the results of discussions in the Central Health and Safety Committee, we

Key CSR
Indicators andResults

chose to focus our efforts on the issues of (1) Safe operations, (2) Fire prevention, and (3)Maintenance of mental and physical health. In addition, we promoted wide implementation ofsafety and disaster prevention systems, such as the Safety Evaluation System (SES) and the FirePrevention Evaluation System (F-PES), in addition to mental health measures. We promoted

About Our
Reportingactivities for the maintenance and improvement of health and safety.

82

IndexOccupational Health and Safety System Structure

Top Commitment

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Risk Assessments
Japan

About Our
Reporting

SystemEvery year, Calsonic Kansei and its Group companies in Japan strive to improve the level of theirperformance regarding certain issues. In Fiscal 2012, risk assessments were carried out fortraining, and one risk assessment was submitted for each facility. In Fiscal 2013, one risk
assessment was conducted for each team, and in Fiscal 2014 at least one risk assessment was
conducted by each group leader, in efforts to reach even higher levels. In response to legislative
amendments, risk assessments on chemical substances have been introduced and are being
implemented.
Currently, risk assessments are conducted for each task in the standard operating manuals of allprocesses and equipment. Risk assessments on chemical substances are conducted when any of
the 640 substances that require issue of a Safety Data Sheet (SDS) is newly adopted or when
there is a change in the work procedures.

83IndexFiscal 2016 Results
Japan
Activities

Top Commitment

There were no serious accidents or fatalities at Calsonic Kansei or its Group companies in Japanor overseas in Fiscal 2016. There were two lost time injury accidents in the Calsonic KanseiGroup, the same number as in Fiscal 2015. The frequency rate for the entire Group fell from 1.88

Our Stance on
CSR

in Fiscal 2015 to 1.49 in Fiscal 2016.

Trend in Total Frequency Rate
Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting* Frequency rate: Rate of accidents per 1 million working hours = (Number of accidents) + (total working
hours) x (1,000,000 hours)

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

An inspection84Evaluators qualified through a certification system audit all facilities in the Group based on acommon SES checklist and check the degree of improvement.
Index

Separate reports on the outcomes of these evaluations are issued for each facility. By evaluating
the Group companies based on the same standards, we aim to identify the differences in safetylevels among Group companies, in an effort to improve safety levels across the entire Group.
Supervisors at each plant also use the SES checklist during their rounds of the factory floor in an

Top Commitment

Our Stance on
CSReffort to maintain and improve safety levels.

Fire-Prevention Evaluation System (F-PES)
Japan
SystemStakeholder
Engagement

Calsonic Kansei and its Group companies in Japan have introduced the Fire-Prevention Evaluation
System (F-PES), which could be considered as a version of SES for fire prevention. Similar to the
SES, it involves the use of a common checklist to map features such as hazardous materials
facilities, electrostatic booths, and painting booths within plants, in an effort to prevent fires andcomply with laws and regulations.

Governance

Until Fiscal 2014, we trained F-PES evaluators and these evaluators used to conduct F-PES
evaluations at each facility. Since Fiscal 2015, however, company-wide audits are now conductedby Headquarters and internally certified employees, as is the case with SES.

Social Initiatives

Environmental
Initiatives

Health and Productivity ManagementJapan
Key CSR
Indicators andResults

Activities
Calsonic Kansei and its Group companies in Japan launched a quit-smoking campaign in Fiscal
2013. That same year, as a trial, they declared one day a year as a non-smoking day. This was

About Our
Reportinglater increased to two days a year, and in Fiscal 2014, there were four non-smoking days. At thesame time, indoors areas were separated into smoking and non-smoking sections, and thesmoking sections are gradually being reduced. Individual facilities also hold Quit Smoking
seminars, and are raising awareness about the harm caused by smoking through activities such asmeasuring the CO2 density of exhaled breath and measuring “lung age.”
Other ways in which we are assisting our employees to improve their health include theintroduction of smartphone health apps and encouraging employees to use sports clubs with which
the company has taken out corporate membership.
In addition, Calsonic Kansei Headquarters provides employees with the opportunity to measure
their blood vessel age and bone density, and holds walking seminars. In March 2017, it built awalking track around the external perimeter of company headquarters, making it available to both
employees and local residents. The plants and Group companies in Japan plan to expand theirhealth-promotion measures going forward.

85

IndexTop Commitment

Our Stance on
CSR

Mental Health
Japan

Stakeholder
Engagement

SystemCalsonic Kansei and its Group companies in Japan has had external experts conduct stresschecks on employees every year since Fiscal 2008. The participation rate is almost 100%, andemployees with high levels of stress are able to receive advice from a specialist doctor. This

Governanceprogram also satisfies the requirements of the stress check system legally required since
December 2015.
Due to privacy considerations, the results of individual diagnoses are not provided to the company,
but managers are able to confirm the stress levels of each workplace unit. Managers can examine

Social Initiatives

the data for their own workplace, which have been analyzed from various perspectives, and usethat information to make improvements to the work environment.
External counseling experts are brought into divisions with particularly high levels of stress. Theseexperts listen to the opinions of both employees and their supervisors to identify any gaps andEnvironmental
Initiatives

devise improvement plans.
In the past, mental health line care seminars were offered for all newly appointed management
personnel. However, analysis of stress levels by position, gender, and age, as well as by division,

Key CSR
Indicators andResults

which was conducted with the aim of further improvement, found that that stress was high among
young employees and mid-career employees. As a result, from Fiscal 2013, mental health selfcare seminars were established for general employees advancing to a higher position. The intranet
also has a section that provides information on partner medical institutions and counselors, as partof our efforts to encourage care at an early stage.

About Our
Reporting

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

86

IndexTop Commitment

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

China Region

Building for a Safe Working Environment
Environmental
Initiatives
Calsonic Kansei (Guangzhou) Corporation Dalian Branch

Key CSR
Indicators andResults

About Our
Reporting

Earth Day participants

Aiming for zero accidents through traffic safety education
Calsonic Kansei (Guangzhou) (CKGH) is conducting a campaign with the aim of an annual
accident rate of zero, to raise awareness of traffic safety among its employees. In November 2016,
the company organized a training seminar by police officers from the Huadu District Traffic
Department. The instructors thoroughly impressed on the participants the following three points:(1) prevention of pedestrian and bicycle accidents while commuting to and from work: (2) correct
wearing of seatbelts in both front and back seats when traveling in a passenger vehicle, and: (3)the eradication of drink-driving. After the police officers’ traffic safety lecture, the employees
enthusiastically participated in other activities, including talking about their own experiences, which
helped to raise their awareness of traffic safety.

87IndexThorough implementation of fire prevention measures, including
fire drills
CKC conducted a fire drill in November 2016. Employees practiced evacuating via the emergency

Top Commitment

staircases, and confirmed what they should do in the event of a fire.
A safety and fire prevention seminar was also held as part of the company’s fire-fighting initiatives.
Employees listened to a lecture by an instructor, toured the facilities, learned about the history offire-fighting in Shanghai by watching a 3D video, and learned how to use the various fire-fighting

Our Stance on
CSR

equipment and how to evacuate.
Through these kinds of activities, we are endeavoring to make employees more conscious of fire
prevention and to become more capable of responding calmly in the event of a fire.

Stakeholder
Engagement

Americas Region
GovernanceSocial Initiatives

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

Calsonic Kansei North America, Inc.
Human Resources Generalist

Kim Concialdi
Environmental
Initiatives

An opportunity to learn and think about safety
Key CSR
Indicators andResults

The Health and Safety Fair has been in existence for several years. It is an opportunity to educate
employees on the various benefits we have, and allows departments that deal with matters suchas health, legal affairs and retirement issues to interact with employees directly. There is also asafety aspect in which representa-tives from the Fire Department, Police Department, and water

About Our
Reportingsafety organizations provide information on car, house and personal safety.

Health and safety advice from outside experts
In Fiscal 2016, during the month of June, the CKNA Benefits and Safety teams combined efforts tohost the annual Health and Safety fairs for all locations.
Insurance representatives, local law enforce ment and emergency services, and healthcare
providers came onsite to answer team members’ questions and to promote awareness on healthy
lifestyle choices and safety efforts outside of work.
Overall, the events were a success and reached over 1,200 team members!

88

Creating an Organization in which Employees Can Participate Actively
Index

Creating an Organization that Values
the Individual and Diversity

Top Commitment

Basic StanceOur Stance on
CSR

GlobalPolicyStakeholder
Engagement

To create a workplace where all employees are able to work with vitality, the Calsonic KanseiGroup has established the “CK WAY” (action guidelines), which defines the values to be sharedacross the entire Group. In terms of career development, we recognize the importance ofcapitalizing on the abilities and diversity of all our employees, and therefore strive to enhance both

GovernanceSocial Initiatives

our evaluation systems and our human resource development systems.

Basic Personnel Philosophy

Environmental
Initiatives

GlobalPolicyTo achieve its corporate vision and mission, the Calsonic Kansei Group designates the following as

Key CSR
Indicators andResults

the inspiration for its people, organizations, and culture, and for itself as a corporate citizen.
PeopleAbout Our
Reporting

Motivated and Innovative People
Organization
Global and Diverse Organization
CultureChallenging and “Care for you” Culture
Corporate citizen
Transparent and Ethical Behavior

89

Index

Sharing a Sense of Values

GlobalTop Commitment

PolicyThe Calsonic Kansei Group introduced the CK WAY in 2007, established as the common action
Our Stance on
CSR

guidelines for all employees, followed by the CKLC (CK Leadership Competencies) in 2010, which
serve as the basis for all the activities of those in managerial positions. These guidelines provide acommon set of values throughout the entire Group and are put into practice in our workplaces.

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting90

IndexTop Commitment

Fair Treatment and Evaluation

Japan
SystemThe Calsonic Kansei Group and its Group companies in Japan revise annual salaries and wages

Our Stance on
CSR

based on competency evaluations, using the CK WAY and CKLC as evaluation parameters, andprovide incentive pay and bonuses based on individual performance evaluations. There is nodifference in base pay or total compensation between male and female employees on the samelabor rank.

Stakeholder
Engagement

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

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting91

Creating an Organization in which Employees Can Participate Actively
Index

Human Resources Development to
Expand Individual Capabilities

Top Commitment

Basic StanceOur Stance on
CSR

GlobalSystemStakeholder
Engagement

The Calsonic Kansei Group believes that its people are vital above all else for achieving
sustainable growth, and is committed to the development of its human resources. The Group hasrolled out a variety of human resources development programs, with particular focus on thethemes of “Monozukuri” and “global.” These programs were conducted for 7,968 employees for a
total of 107,292 hours in Fiscal 2016 (13.5 hours per employee).

GovernanceSocial Initiatives

Environmental
Initiatives

Monozukuri Human Resources Development

GlobalTo further improve the Monozukuri capabilities that have been strengthened through global
competition and roll out these capabilities on a global level, we conduct training for the acquisition

Key CSR
Indicators andResultsof knowledge and skills in a planned manner, including CKPS (Calsonic Kansei Production
System) training, which forms the foundation for Monozukuri at Calsonic Kansei, as well as various
specialized technical training programs. In addition, systematic career path programs are
conducted to develop Monozukuri capabilities to the level required in the field through a broad

About Our
Reportingrange of operational experience.

Introduction of the Skills Meister System

CK
The Meister Certification Committee has been established to define the skills required for
Monozukuri and to certify and re-certify “meisters” (highly skilled workers). As in the previous year,
a meeting of the Meister Certification Committee was held in April 2016, during which five newmeisters were certified, bringing the total to ten. Meisters are selected not only for their skills, butalso for being recognized as model employees by everyone they work with.

92

IndexTop Commitment

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Global Human Resources Development
Environmental
Initiatives

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

Key CSR
Indicators andResults

About Our
Reportingconduct Global Business Leader Training (GBLT), a group training program conducted in English
for leader candidates from each country and region, including Japan.

Global Business Leader Training (GBLT)

93

IndexTop Commitment

Systems for Raising Incentive

CK

SystemThe Calsonic Kansei Group has a range of schemes in place to raise incentive among its
Our Stance on
CSR

Stakeholder
Engagement

Governanceemployees and to secure outstanding human resources.
Number ofparticipants

SystemOutlineQualification and Skills Examination
Encouragement Scheme

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

10Awards Scheme

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

843

Career Advancement Assistance Scheme

Career interviews for all employees

All employees

Thank You Card Scheme

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

All employees

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting94

IndexAmericas Region

Leadership Training to Encourage Further Growth
Top Commitment
Calsonic Kansei North America, Inc.

Manufacturing Leadership Development Program GenerationII
Our Stance on
CSR

Participants say it helped them see the bigger picture
Stakeholder
Engagement

CKNA began its Manufacturing Leadership Development Program (MLDP) in Fiscal 2015, with 12“Generation I” members participating in the inaugural program.
The MLDP is a 3-month training program that provides all Hourly team members with theopportunity to develop leadership skills that will enable them to promote up into various positions

Governanceand across all functions at CK.
Participants are recommended for the program by their team leader, supervisor, or manager.
Training includes a 4-week site management module, 1-week QSES module, 1-week NPL, PC, InHouse Cost, and human resources modules. Team members also complete 6-weeks of Job

Social Initiatives

Shadowing*2 with production supervisors at the various Tennessee locations. In Fiscal 2016, 11
team members graduated from Generation II of the MLDP program. Each team member shared
how this training has helped them understand their own jobs better and to see the bigger picture ofEnvironmental
Initiatives

Key CSR
Indicators andResults

the business.
*1: Accompanying the supervisor on his or her operations and learning how to do the job.

To help every single member continue to grow
CKNA will continue to support our members into the future so that they grow not just at work but intheir private lives as well.

About Our
Reporting95

IndexCreating an Organization in which Employees Can Participate Actively

Promotion of Diversity
Top Commitment

Basic StanceOur Stance on
CSR

GlobalSystem
Employees with a range of diverse values create new innovations through healthy conflict, which

Stakeholder
Engagement

Governanceleads to the growth of the company and the individuals. The Calsonic Kansei Group considers thepromotion of diversity to be one of the most important management strategies of the entire Group.

Diversity Management
Japan

Social Initiatives

SystemCalsonic Kansei and its Group companies in Japan have been carrying out diversity promotion
activities since 2011. These activities are led by the Diversity Promotion Team, “shine.net,” whose

Environmental
Initiatives

members are appointed by individual divisions.
In addition to raising awareness through activities such as workplace study groups and lectures,shine.net suggests measures and systems that support diverse working styles through opinion
exchange meetings, advanced company benchmarking, etc.

Key CSR
Indicators andResults

About Our
Reporting

Active Participation of Women
CK
Activities
Calsonic Kansei aims to create workplaces and ways of working that make it possible to maximize
the capabilities of women at various life stages, such as childbirth and childcare. Accordingly, we
listen to our employees’ voices through employee opinion surveys and through the Working Style
Improvement Committee and Diversity Promotion Team, incorporating the results of such activities
into various measures.
Furthermore, we have set the goal of at least doubling the number of female managers from thecurrent level (15 as of March 31, 2016) by the end of March 2021. This is part of the General
Employer Action Plan that we were required to create according to the Act on Promotion of
Women’s Participation and Advancement in the Workplace. Toward this goal, we are proceeding to
implement various measures in collaboration with the HR Group and other related divisions, inaddition to continued efforts to change the consciousness of people inside the company.

96

IndexActive Participation of Foreign Employees
Top Commitment

GlobalActivities
Our Stance on
CSR

The Calsonic Kansei Group hires talented people regardless of their gender or nationality. Of the
new graduates hired by CKJ in 2016, 10 are foreign nationals. As of April 1, 2016, the overall
number of foreign-national employees at CKJ was 75 (including contracted employees andStakeholder
Engagement

employees on temporary assignment from overseas locations). We are also actively promoting theengagement of local employees in each region, with 34.9% of the officers at our local subsidiaries
hired locally.

Governance

Active Participation of People with Disabilities
Social Initiatives

CK
Environmental
Initiatives

Activities
As well as actively hiring people with disabilities, Calsonic Kansei is taking steps to promote better
understanding through human rights seminars to create a workplace that is friendly to employeeswith disabilities. Besides promoting employment of women and foreign nationals, we are currently

Key CSR
Indicators andResults

actively expanding both the employment of people with disabilities and the types of jobs open tothem. As of March 31, 2017, employees with disabilities accounted for 1.93% of our workforce.

About Our
Reporting97

IndexTop Commitment

Improving Company Infrastructure

CK
Activities
In February 2017, work was completed to convert the security doors between the common-use

Our Stance on
CSR

areas and office areas on each floor of the headquarters building from manual to automatic. Thiswas done to improve accessibility, in response to feedback from wheelchair-bound employees who
found it difficult to pass through the manual door.
In addition to improving accessibility, this change has also made it more convenient for other

Stakeholder
Engagement

employees when they need to carry large objects around inside the company.
In October 2016, in response to requests from employees, one of the conference rooms in theheadquarters building was made into a prayer room. Rules for operating this room have been
established so that its use is not confined to any one particular religion.

GovernanceSocial Initiatives

Environmental
Initiatives

Re-hiring of Retired Employees

Japan
SystemJapan is facing an unprecedented decline in its birthrate and the aging of its population. To combat
this, Calsonic Kansei and its Group companies in Japan consider measures to re-hire retired

Key CSR
Indicators andResults

employees who are skilled workers to be an important factor of human resource utilization. This isin addition to measures to support employees in their prime working years in areas such as
childbirth, childcare, and nursing care support. Specifically, we re-hire all employees who havereached the retirement age of 60 but who wish to continue working, making it possible for them to

About Our
Reportingremain at the company until the age of 65.

98

IndexAsia Region

Equal Employment Opportunities by Hiring People with
Disabilities
Top Commitment

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

Chalavalai Wutthikornkriengkrai

Our Stance on
CSR

Stakeholder
Engagement

Harsh employment situation for people with disabilities*
In Thailand, the Disabled Persons Promotion and Development Life Quality Act came into force on
September 18, 2007, resulting in the further promotion of employment of people with disabilities.

Governance

There are an estimated 1.74 million people with disabilities in Thailand, about half of whom have aphysical disability, followed by the hearing impaired and sight impaired. Approximately 250,000
people with disabilities are in the workforce, about 85% of whom work as informal workers or are
self-employed in agriculture and other areas. In contrast, only 6.3% work for private-sector

Social Initiatives

companies, and government agencies hire only about 1.5% of people with disabilities.
* Employment of People with Disabilities in Thailand from the Japanese Embassy in Thailand website

Environmental
Initiatives

Providing equal employment opportunities and an environ-ment
for making the most of one’s abilities
Calsonic Kansei Thailand (CKT) embraces diversity, and as part of this, actively hires people withKey CSR
Indicators andResults

disabilities. There are currently 15 people with disabilities working at CKT, with equal rights andopportunities to other employees. They are assigned to different functions in all of our plants. To
provide an environment in which they can keep working for a long time, we conduct training ofsupervisors and other initiatives to determine how best to support them. In June 2016, the National
Commission for Promotion and Development of Disabled Persons Life Quality visited CKT to

About Our
Reportingobserve how our employees with disabilities were faring. CKT will continue to promote diversity
going forward, and will strive to ensure that all of its employees can work with vitality andenthusiasm.

99

Creating an Organization in which Employees Can Participate Actively
Index

Promotion of Work-Life Balance

Top Commitment

Basic StanceOur Stance on
CSR

Japan
PolicyYear by year, changes in the social structure are resulting in increasingly diverse lifestyles of ouremployees. Calsonic Kansei and its Group companies in Japan are supporting these changes

Stakeholder
Engagement

through the development and implementation of various schemes and measures. These schemes
and measures are based on the Act on Advancement of Measures to Support Raising NextGeneration Children, but go above and beyond the levels stipulated by the law.
In the back-office divisions, a flexible flextime system, which has no stipulated core time, has been

Governancein place for some time. We have also made changes to our systems with the aim of improving thework-life balance of our employees. For example, in Fiscal 2016, the length of vacation allowed forhoneymoons was extended, as was the number of paid holidays for employees who have beenwith the company less than one year. Additionally, we are continuing to take various other steps,

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResultssuch as an initiative to introduce telecommuting in order to support diverse working styles.

Supporting Childbirth, Childcare, and Nursing CareJapan
SystemCalsonic Kansei and its Group companies in Japan are striving to enhance their personnel and

About Our
Reporting

employee benefit and welfare systems so that all employees may work with peace of mind andvitality in accordance with their current stage of life, individual situation, and values. In recent
years, we have been putting particular effort into enhancing schemes to support our employees inchildbirth, childcare, and nursing care, to help create a society in which women’s abilities arevalued and fully utilized.
Year after year, we have been enhancing our schemes to help employees continue their working
careers and to facilitate their return to work. For example, in Fiscal 2015, we expanded employee
eligibility to work shorter hours so they can care for their children until the year of their child’s
elementary school graduation. From Fiscal 2016, we expanded the eligibility for assistance forfamily dependents, extended the length of childcare leave (until the end of April following thechild’s second birthday), and instituted a regular interview system to check in with employees who
are on leave of absence. In Fiscal 2016, 100% of employees who had taken leave of absence
returned to work.
We also extended the periods that employees may take in nursing care leave scheme as a way of
supporting our employees in their work.

100IndexTop Commitment

Our Stance on
CSR

Stakeholder
Engagement

Governance

Kurumin Mark Certification

CK
Activities
In FY2015, the Ministry of Health, Labor and Welfare(Japan) awarded the Group Kurumin (1 Star)
certification, a certification given to companies with business plans as general business operators

Social Initiatives

that meet certain requirements under the Act on Advancement of Measures to Support Raising
Next-Generation Children.

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

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

101

ChildbirthChildbirthPre-and post-birth maternity leave

Measures for health examinations, etc.

Expectant mothers are entitled to 6 weeks’maternity leave or, in the case of multiple
pregnancy, 14 weeks, dating back from the duedate, and to 8 weeks’ leave counted from the
day after the child is born.

On request, pregnant women and new mothers
may be excused from work for the time required
to receive health guidance or undergo healthexaminations during pregnancy and up to one
year after the child’s birth.

Nursing Care

Child Care

Nursing Care Leave Scheme

Child Care Leave

Employees with less than one year’s service
may also take nursing care leave(under the legislation, employers may exempt
employees of less than one year from suchleave).

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

Child Care

Child Care

Regular Consultation Scheme

Shorter working hours to care for children

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

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

Flextime Scheme

Leave to accompany spouse being posted
overseas

Index

Top Commitment

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

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

102

Employees accompanying their spouse on an
overseas posting, and who wish to remain withthe company, may take up to three years’ leaveof absence while their spouse is posted
overseas.

Index

Employee DataCK

Top Commitment

2014

Our Stance on
CSR

Stakeholder
Engagement

2016

Number of regular employees

3,622

3,643

3,741

Male

3,346

3,352

3,419

Female

276

291

322

Average age (years)

44.2

44.4

44.2

Length of continuous employment (years)

19.6

19.4

18.3

Turnover rate (%)

1.2

1.0

1.3

6,055,373

6,237,718

6,394,249

Rate of employment of people with disabilities (%)

1.85

1.93

2.07

Number of employees taking nursing care leave

15

13

14

Number of employees taking childcare leave

2

0

1

Average yearly salary (yen)Governance2015

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting103

IndexTop Commitment

Environmental Initiatives

Our Stance on
CSR

Stakeholder
Engagement

Environmental Management
Governance

Environmentally-Conscious Monozukuri
Approaches to Climate Change

Social Initiatives

Approaches to Resources Conservation and Recycling
Appropriate Management of Chemical Substances

Environmental
Initiatives

Environmental Burden Data (Material Flow)
Environmental Accounting

Key CSR
Indicators andResults

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

About Our
Reporting104

IndexTop Commitment

Our Stance on
CSR

Environmental Management

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

Stakeholder
Engagement

Japan

Overseas

PolicyThe Calsonic Kansei Group has set an Environmental Policy in order to establish principles for all
GovernanceGroup activities, and, based on this policy, strives to protect the global environment, which is acommon challenge for all humankind.

Social Initiatives

CK Green Policy (Environmental Policy)
Environmental
Initiatives

Key CSR
Indicators andResults

About Our
ReportingCalsonic Kansei Group Environmental Management
Promotion System

Japan

Overseas

SystemBy sharing this Environmental Policy internally, striving to reduce the environmental burden at allstages of its corporate activities, and developing eco-friendly products, the Group seeks to be acompany that is trusted by society, its customers, and all other stakeholders, and to achievesustainable development of the company and society going forward.

105

IndexTop Commitment

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting106

IndexTop Commitment

Mid-Term Environmental Plan: Calsonic Kansei Green
Program 2016Japan
Our Stance on
CSR

Overseas

PolicyThe Calsonic Kansei Group defined its goals and conducted activities based on the CalsonicKansei Green Program 2016, its mid-term environmental plan implemented between fiscal 2011

Stakeholder
Engagement

and fiscal 2016.
TargetItem
Category

RegionTargetachievement
schedule

FY2016 target

FY2016
resultsJapan

Top Singleyear
Bottom Midterm

2.5% reduction
compared to
FY2015
18.5%
reductioncompared to
FY2005

3.8% reduction
compared to
FY201532.3%
reductioncompared to
FY2005

Americas,
Europe,and Asia

Top Singleyear
Bottom Midterm

2.5% reduction
compared to
FY2015
13.6%
reductioncompared to
FY2005

1.2% increase
compared to
FY2015
26.7%
reductioncompared to
FY2005Japan

Top Singleyear
Bottom Midterm

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

Top Singleyear
Bottom Midterm

1.0% reduction
compared to
FY2015
6.0 reduction
compared to
FY20103.7% reduction
compared to
FY2015
8.0% reduction
compared to
FY2010Japan

Top Singleyear
Bottom Midterm

2.0% reduction
compared to
FY201518.1%
reductioncompared to
FY2005

1.1% increase
compared to
FY201526.1%
reductioncompared to
FY2005

Americas,
Europe,and Asia

Top Singleyear
Bottom Midterm

1.0% reduction
compared to
FY2015
6.0 reduction
compared to
FY20102.3% reduction
compared to
FY201518.8%
reductioncompared to
FY2010Japan

Top Singleyear
Bottom Midterm

2.0% reduction
compared to
FY2015
21.4%
reductioncompared to
FY2009

13.6%
reductioncompared to
FY2015
19.7%
reductioncompared to
FY2009GovernanceCO2 from
production

Social Initiatives
Reduction of CO2 emissions(Reduction of energy
consumption)
Reduction of production CO2

Environmental
Initiatives

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

Key CSR
Indicators andResults

CO2 from
logistics
Transport tonkilometer

CO2 from offices

About Our
Reporting

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

Conservation of water, air, soil andbiodiversity
Usage intensity (usage/sales

Waste(Waste for
disposal +valuableresources)

Water
consumption

revenue )107

Target

Index

Item
RegionTargetachievement
schedule

FY2016 target

FY2016
results

Americas,
Europe,and Asia

Top Singleyear
Bottom Midterm

2.0% reduction
compared to
FY2015
4.0% reduction
compared to
FY2015

7.6% increase
compared to
FY2015
2.6% reduction
compared to
FY2014

VOC(Volatile
Organic
Compounds)Japan

Top Singleyear
Bottom Midterm

2.0% reduction
compared to
FY201530.0%
reductioncompared to
FY20006.4% increase
compared to
FY2015
83.9%
reductioncompared to
FY2000Landfill waste

Americas,
Europe,and Asia

Mid-term

Maintain zero
landfill0%

Category

Top Commitment

Our Stance on
CSR
Zero Landfill (reduce landfill waste
to zero)Landfill rate

Stakeholder
Engagement(Landfill volumes/waste
volumes)

Governance

Strengthening Environmental Management
Social Initiatives

Development of ISO 14001 Environmental Management System
Environmental
Initiatives

Japan

Overseas

PolicyThe Calsonic Kansei Group has been pursuing ISO 14001 certification, the international standard
Key CSR
Indicators andResults

for environmental management systems, since 1998. Certification has been obtained for a total of
13 sites in Japan, including all Calsonic Kansei plants, our Testing Research Center, and R&D
Center and Headquarters, and 22 overseas sites.
ISO 14001:2015 was released in 2015, and to date, three sites have completed the transition to

About Our
Reportingthe new system. The remaining sites will progressively move over to the new system, withtransition scheduled for completion by September 2018.
Further, to raise the standard of our environmental management systems, more internal auditors
are being appointed at each location. Also, with the Environmental & Energy Control Group playing
a central role, regular internal audits, as well as external audits by auditing agencies, are being
undertaken.

108IndexStatus of ISO14001 Certification
Certification Status within Calsonic Kansei
Manufacturing Plans

Top Commitment

Gunma Plant
Kodama Plant
Oppama PlantJapan

Our Stance on
CSR

Yoshimi Plant
Testing Research Center
R&D Center, Headquarters

Stakeholder
Engagement

Certification Status at Major Group Companies in Japan
Company
Calsonic Kansei Iwate Corporation

GovernanceCKK Corporation
Calsonic Kansei Utsunomiya Corporation
Japan

Social Initiatives

CFK Corporation
Tokyo Radiator Mfg. Co., Ltd.
CKP Corporation
Calsonic Kansei Yamagata Corporation

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting109

Certification Status at Major Overseas Group Companies
Index
Company
Calsonic Kansei North America, Inc. Shelbyville Plant
Calsonic Kansei North America, Inc. Lewisburg Plant

Top Commitment

AmericasCalsonic Kansei Mexicana, S.A. de C.V Aguascalientes Plant
Calsonic Kansei Mexicana, S.A. de C.V San Francisco Plant
Calsonic Kansei Sunderland Limited

Our Stance on
CSR

Calsonic Kansei UK Limited Washington Plant
EuropeCalsonic Kansei UK Limited LlanelliPlant
Calsonic Kansei Spain, S.A.

Stakeholder
Engagement

Calsonic Kansei Romania S.R.L.
Daihan Calsonic Corporation.
Calsonic Kansei Korea Corporation
Calsonic Kansei (Malaysia) Sdn. Bhd.

GovernanceCalsonic Kansei (Wuxi) Corporation
Calsonic Kansei Components (Wuxi) Corporation
Calsonic Kansei (Guangzhou) Components Corporation

Social Initiatives

Asia

Calsonic Kansei (Guangzhou) Corporation Headquarters, Huadu Plant
CK KS Engineering (Guangzhou) Tooling Center Corporation
Calsonic Kansei (Guangzhou) Corporation Branch, Zhengzhou Plant

Environmental
Initiatives

Calsonic Kansei (Thailand) Co., Limited
Siam Calsonic Co., Limited
Calsonic Kansei (Xiang Yang) Corporation

Key CSR
Indicators andResults

About Our
ReportingCalsonic Kansei (Haimen) Car Air-Conditioning Compressor Corporation

Addressing Environmental Risks and Opportunities ThroughEnvironmentally Conscious Business Management
Japan

Overseaso Climate Change Risks and Opportunities
In the midst of worldwide calls to address climate change by improving fuel efficiency in transport
equipment and moving away from fossil fuels, as a manufacturer of components that supports thetransport equipment industry, we are engaged in the development of products that will contribute tolighter and more efficient vehicles, products that will lessen the impact on the environment ofburning fossil fuels, and products that will help the shift away from carbon, such as electricalvehicles. Our efforts to improve efficiency and conserve energy in the product manufacturing stage
are also contributing to a sustainable society and helping to achieve corporate growth.

110Indexo Water-related Risks
In recent years, due to global warming, frequent large-scale typhoons have caused flooding in ourSoutheast Asian facilities, forcing them to suspend operations. We consider measures to address
such unavoidable damage and natural disasters as a risk in terms of continuation of business.

Top Commitment

Also, given the large volumes of water used in the course of production, it is essential to business
continuation and growth that each location secures sufficient supplies of water and keeps theimpact on the local water environment to a minimum. For this reason, we are working to ascertain
the volume of water used at our production locations and to reduce the accompanying water risks.

Our Stance on
CSR

Conducting Environmental Audits at Overseas Locations
Stakeholder
Engagement

Overseas
Activities
During Fiscal 2016, we conducted environmental audits at six sites, where we identified andmanaged risks. This has helped to raise the standard of environmental management at those sites.

GovernanceSocial Initiatives

Audits are planned for fiscal 2017 as part of our efforts to improve the standard of environmental
management on a Group Global basis.

Response to Scope 3 Emissions
Japan

Overseas

Activities
Environmental
Initiatives

Aiming to reduce CO2 emissions in the value chain, from fiscal 2016, the Calsonic Kansei Groupbegan an initiative to calculate emissions under the Scope 3 Greenhouse Gas Protocol in FY2015.
In FY2016, these emissions were calculated in 13 categories.

Key CSR
Indicators andResults

Headquarters
About Our
Reporting

Promoting Environmental Management on a Global ScaleGroup Leader, Environment and Energy Management Group, Global Production
Headquarters
Calsonic Kansei Corporation

Tadayoshi Tajima

Environmental Management that Supports EnvironmentallyConscious Business Management
My role is to pursue environmental management on a global scale in the Calsonic Kansei Group,and to contribute to business management that is in harmony with the environment.
I would like to talk about three aspects of my work. The first is our global initiatives to prevent111

environmental incidents. I check monitoring outcomes and, where there are risks, provide advice
before something happens, to nip environmental incidents in the bud at an early stage.
Index

The second aspect is the job of transitioning to ISO14001:2015, which was revised in September
2015. Of our 33 global sites, three sites, including Global Headquarters, completed transition in
Fiscal 2016, and the remaining 28 sites are scheduled to do so by the end of Fiscal 2017.
The third aspect is the promotion of environmental protection initiatives that use ISO14001 as a

Top Commitment

management tool. By communicating information that will encourage each and every one of ouremployees to take an interest in environmental activities and to be aware of their importance, I
undertake initiatives designed to view individual operations from an environmental perspective.

Our Stance on
CSR

Stakeholder
Engagement

Stepping Up Our Activities in the Hope of Becoming a Company
that is Given More Credit for its Social Value
Conventionally, the indices for evaluating companies were financial figures, but in recent years, inaddition to financials, the international community has come to place more importance on how
companies are addressing criteria such as ESG (environmental, social, and governance) criteria,
Sustainable Development Goals (SDGs), and human rights. You could say we have entered an era

Governancein which companies are assessed on the degree of their contribution to society.
While continuing and expanding the initiatives that Calsonic Kansei has built up to date, I see it as
our mission to step up our communications so that all of our employees can become more awareof the need for environmental initiatives.

Social Initiatives

Of course, such environmental activities should not be confined to Japan. As part of our global
initiatives, we support the Paris Agreement. To fulfill our corporate philosophy of the realization of asustainable society, it is essential that we conduct activities that incorporate science-based
emission reduction targets (SBT) consistent with the “2°C target.”. This is a target that seeks toEnvironmental
Initiatives

Key CSR
Indicators andResults

keep the rise in global average temperatures to no more than 2°C above pre-industrial levels.

Responding to the Requirements of the International Community
Through Environmental Communication
Because environmental regulations vary from country to country and are becoming stricter every
year, close communication is extremely important and we are providing our overseas locations withenvironmental regulation support from Japan as well. We check monitoring outcomes for the

About Our
Reportingprevention of environmental incidentsand provide advice on the prevention of risks. Regular videoconferences and teleconferences to gather the necessary data is supplemented by e-mail andtelephone communication. In this way, we have created an environment that enables
communication that goes that one step further.
For the Calsonic Kansei Group to become a company that will continue to meet the requirementsof the international community, we hope to promote environmental communication even further.

112

IndexEnvironmentally-Conscious Monozukuri

Top Commitment

Pursuing “Green” policies andcreating new value
Basic StanceOur Stance on
CSR

We aim to help create a better tomorrow for the automobile society by capitalizing on the advanced
technologies and know-how we have accumulated over many years.
Stakeholder
Engagement

The Calsonic Kansei Group strives to solve social issues on a global scale through its businessactivities and is constantly creating new value.

GovernanceSocial Initiatives

Strategic Monozukuri in Pursuit of a Sustainable
Automobile Society

We believe the greatest contribution we can make to solving social issues through our business
Environmental
Initiatives

activities is by creating eco-friendly products. Therefore, the Calsonic Kansei Group has identified
four new value creation areas and 12 environmental technology areas in which it is taking strategic
initiatives toward achieving sustainable mobility.

Key CSR
Indicators andResults

About Our
Reporting113

IndexStrategic Priority on 4 Value Areas

Top Commitment

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
ReportingIndustry-Leading Mid-Term Management Plan with a“Green” Focus

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

114

IndexTop Commitment

State of Implementation of the “Green” elements of the Mid-Term Management
Plan
Our Stance on
CSR

2011-2012

TargetStakeholder
Engagement

2

GovernanceAchievement

3

EGR Cooler
Injection Molding Skin for Instrument
Social Initiatives

products

Panelproducts

Soft-Feel, Hard-Installment Panel

Environmental
Initiatives

2013-2014

Key CSR
Indicators andResults

Target5

About Our
Reportingproducts

Achievement

4
Brushless Motor for Motor Fans
Water-Based Painting for Instrument
Panel
CR Compressor
Blower Motor for Battery Cooling

115

products

Index2013-2014

TargetTop Commitment

3

Our Stance on
CSR

Stakeholder
Engagement

products

Achievement

3

High-Performance Built-in Oil
Cooler/Warmer

products

Vacuum-Formed Stitched Skin for
Instrument Panel
Governance

3D-Sewn Skin for Instrument Panel

Social Initiatives

Development of Eco-Friendly Products
Environmental
Initiatives

Between Fiscal 2011 and Fiscal 2016, we introduced ten products into the market. Furthermore, toeffectively communicate the CO2 emissions reduction effects of our eco-friendly products both
Key CSR
Indicators andResults

internally and externally, we took steps to visualize our environmental performance. Through thesesteps, we aim to develop and popularize even better eco-friendly products.

Eco-Friendly Product Highlights
About Our
Reporting

The Built-In Oil Cooler/Warmer is a product that not only cools transmission oil, but also
contributes to improving fuel efficiency and reducing CO2 emissions. It achieves this by quickly
warming the transmission oil to the appropriate temperature during engine start-up to reduce
friction loss. In recent years, to improve engine room layout, we have also added a product lineupthat maintains the same level of performance at half the height of previous models. This has also
resulted in reduced use of resources.
For the first time in the world, we have manufactured a skin for instrument panels using a generalpurpose injection-molding machine that simultaneously achieves low cost and a low environmental
impact, while maintaining the same level of luxurious feel as the conventional skin made using thepowder slush molding method for luxury cars.
This new skin was developed jointly with Nissan Motor Co., Ltd. With this significant modification of
the skin manufacturing method (i.e., improvement of thermal efficiency), this product has
successfully reduced the cycle time by 82% and CO2 emissions by 47% compared to the previous
method.

116

IndexHigh-Performance Thin Built-In 0il
Cooler/Warmer

Injection-Molded Skin Instrument Panel

Top Commitment

Our Stance on
CSR

Stakeholder
Engagement

KEY PERFORMANCEKEY PERFORMANCE

Performance

Size (height) halved

Equal to previous
product△35

mm(Compared to previous
models)Reduction in cycle time

Reduction in CO2emissions

△82

△47

%

%

(Compared to previous
models)Governance

Innovations for Better Energy Efficiency

Social Initiatives

Eco-Friendly Products Widely Used in the Market
Environmental
Initiatives

Key CSR
Indicators andResults

Examples of Existing Eco-Friendly Products
With the increasing interest in environmental issues and continued tightening of exhaust
regulations in countries and regions around the world, the functions required of exhaust systems
are becoming more advanced, calling for a high standard of development technology capabilities.

About Our
ReportingCalsonic Kansei develops and manufactures optimal products to live up to the high level offunctions required of it as a supplier of exhaust systems.

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

117

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

Top Commitment

Vibration Absorber
Noise and vibration performance and exhaust system durability have been improved through the
Our Stance on
CSR

Stakeholder
Engagement

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

Example of Exhaust System

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting118

Approaches to Climate Change
Index

An Environmentally-Friendly Site inLine with International Standards

Top Commitment

Basic StanceOur Stance on
CSR

Japan

Overseas

Systems
The Calsonic Kansei Group strives to reduce the burdens it places on the environment by

Stakeholder
Engagement

quantitatively evaluating the environmental burdens resulting from its manufacturing operations, togain a comprehensive understanding of the environmental impact of all operations.
We pursue the reduction of CO2 emissions from the perspective of the prevention of global
warming caused by climate change, as well as the reduction of waste generation and water use
from the perspective of the effective use of resources, so that our sites can operate in harmony

Governancewith the environment.
Japan

Overseas

PolicySocial Initiatives

As part of its approaches to climate change, the entire Calsonic Kansei Group is working together
to promote energy conservation activities.
Meetings of the promotion committee, established to organize Group-wide energy-saving activities

Environmental
Initiatives

across each location, are held periodically to set reduction targets for each site, confirm progressand share the latest energy-savings information. Further, in FY2016, a checklist was prepared ofenergy conservation activities undertaken to date, and efforts are being made to achieve goals forenergy-saving areas identified through such activities as energy-saving diagnostic checks in the

Key CSR
Indicators andResults

workplace.
Each site is conducting energy-saving activities through the ISO 14001 Environmental Committee
and other channels.

About Our
ReportingResults of Calsonic Kansei Group CO2 Emissions
Reduction
Japan

Overseas

Activities
In fiscal 2016, compared to fiscal 2005, CO2 emissions were reduced by 31.0% in Japan andincreased by 62.6% overseas due to an increase in overseas production sites. In terms ofemission intensity (total CO2 emissions/sales revenue), the pursuit of activities aimed at respective
reduction targets of 18.5% for Japan and 13.6% for overseas compared to fiscal 2005 resulted in
reductions of 32.3% in Japan and 26.7% overseas in fiscal 2016. In Japan, following on from theprevious fiscal year, we carried out Energy Saving Special Activities in all locations. These
consisted of identifying areas for improvement and sharing examples of energy-saving
improvements made. Initiatives overseas included the identification of areas for improvement
through energy-saving diagnostic checks, and sharing of improvements made.
119CO2 Emissions and CO2 Emissions Per Unit
Index[Thousand t-CO2][t-CO2/million yen)]

Top Commitment

Our Stance on
CSR

Stakeholder
Engagement(Fiscal year)
Governance

CO2 emissions in Japan (left axis)

CO2 emissions overseas (left axis)

CO2 emissions per unit (right axis)
Social Initiatives

CO2 Emissions
Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting[Unit: Thousand t-CO2]

Japan

71

36%

The Americas

67

34%

Europe

26

13%

Asia

34

17%

198

thousand t-CO2

120

IndexActivity Report

Top Commitment

Use of Green PowerJapan
Our Stance on
CSR

Activities
The Calsonic Kansei Group participates in the Green Power Certificate Program, and contributes
to the penetration of 2,245,652 kWh of natural energy per year. (Applicable sites: Calsonic Kansei

Stakeholder
Engagement

Corporation Gunma Plant, Yoshimi Plant, CKP Corporation, Calsonic Kansei Utsunomiya Plant
Co., Ltd.)

GovernanceSocial Initiatives

Results of CO2 Emission Reduction at the Logistics Stage
Environmental
Initiatives

Japan
Activities
As Calsonic Kansei CO2 emissions at the logistics stage are less than 30 million t-km, it does not

Key CSR
Indicators andResults

qualify as a Specified Consigner under Japan’s Energy Saving Act and is therefore not required toreport its emissions. Nevertheless, we have established a reduction plan for logistics and aremaking efforts to reduce emissions.
Production volumes in FY2016 were up on the previous fiscal year, but by making changes to

About Our
Reportingmanufacturing locations and reducing the distances traveled by products, it succeeded in keeping
CO2 emissions at the logistics stage down to the same levels at FY2015.

121

IndexCalsonic Kansei CO2 Emissions at the Logistics Stage(10,000 t-km)

Top Commitment

Our Stance on
CSR

Stakeholder
Engagement

Governance(Fiscal year)

Social Initiatives

Environmental
Initiatives

Recognition by CDP

CDP is an international non-profit organization that calls on companies and municipalities around
Key CSR
Indicators andResults

the world to disclose their environmental performance data. These disclosures are analyzed andevaluated for the use of institutional investors and the world’s policy decision-makers. The CDP
Climate Change Report 2016, a survey on climate change initiatives, gave the Calsonic KanseiGroup an A- (Leadership) score, up from the D we received in 2015.

About Our
Reporting122

Approaches to Resources Conservation and Recycling
Index

To Achieve a Closed-loop Society
Basic Stance

Top Commitment

Resource Conservation Initiatives
Our Stance on
CSR

Japan

Overseas

PolicyTo make efficient use of the planet’s limited resources, the Calsonic Kansei Group is seeking toachieve zero emissions at all of the Group’s locations and to reduce the amounts of materials used

Stakeholder
Engagement

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

GovernanceZero landfill

Water Use Intensity[Waste / Sales revenue][Landfill volumes /Waste volumes][Usage volume /Sales revenue]

Japan

Japan

Japan

Waste Intensity
Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting-26.1 %

0%-19.7 %

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

Target continuously
achieved since Fiscal 2006

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

Overseas

Overseas

Overseas

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

Fiscal 2016 target:
Maintain zero landfill-18.8 %

0%-2.6 %

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

Calsonic Kansei Group’s Waste Emissions Reduction Results
Japan

Overseas

Activities
37,550 tonnes of waste were generated in FY2016. This represented an increase over theprevious fiscal year due to an increase in production volumes.
In Japan, we worked on the horizontal roll-out of resource conservation best practice, andimplemented other activities to reduce process defects by promoting the Monozukuri TdC
Revolution (MTCR) program at each plant. As a result, waste generation intensity (total
waste/sales revenue) was reduced by 26.1% compared to FY2005, achieving the mid-term targetof 18.1% but falling short of the single-year target.
Overseas, efforts were made to improve reduction efficiencies through the horizontal roll-out of
resource conservation best practice. As a result, waste generation intensity (total waste/sales
revenue) was reduced by 18.8% compared to fiscal 2010, against the mid-term target of 6.0%,
which met both the mid-term target and our single-year target.

123

Waste Generated by Calsonic Kansei Group
Index

(t)

Top Commitment

Our Stance on
CSR

Stakeholder
Engagement(Fiscal year)

GovernanceSocial Initiatives

Volume of Waste Generated and Recycled by Calsonic KanseiGroup by Region (FY2016)(t)

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
ReportingTotal waste generated

Waste recycles

124IndexOverseas Group Companies’ Landfill Ratio (zero Landfill)
Overseas
Activities

Top Commitment

Starting in FY2012, a target of zero landfill for overseas by fiscal 2015 was set, and this target has
been achieved. Activities continued in fiscal 2016 and zero landfill was maintained.

Our Stance on
CSR

Reduction of Water Use
Stakeholder
Engagement

Japan

Overseas

PolicyGovernanceIn response to environmental issues such as global water shortages, the Calsonic Kansei Group is
working to reduce water use at all Group companies in Japan and overseas (production divisions
only).

Social Initiatives

Results of Calsonic Kansei Group Water Use Reduction
Japan
Environmental
Initiatives

Overseas

Activities
Water usage in fiscal 2016 increased over the previous fiscal year to 1,303 km3, due to increases
caused by water leakages.

Key CSR
Indicators andResults

In Japan, we conducted checks for water leaks, identified water use reduction areas, and took
improvement actions. As a result, water use intensity (total water consumption/sales revenue) was
reduced by 19.7% compared to fiscal 2009, falling short of the mid-term target of 21.4% due toincreases in production volumes. However, the single-year target of 2.0% was achieved with a

About Our
Reporting

reduction of 13.6%. We will work on the strengthening our reduction activities, with a focus on
locations with heavy water use.
Overseas, water use increased over the previous fiscal year to 688 km3, due to the impact of waterleakages. As a result, water use intensity (total water consumption/sales revenue) was reduced byonly 2.6% compared to fiscal 2014, falling short of the mid-term target of 4.0%.

125

IndexWater Use in JapanTop Commitment

Our Stance on
CSR

Stakeholder
Engagement

Governance

Water use (km3)Social Initiatives

Water use intensity (m3 / million yen)

Mid-term target

Water Use Overseas[km3][m3 / million yen]

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
ReportingWater use (left axis)

Water use intensity (right axis)

Water use intensity mid-term target (right axis)

126IndexCalsonic Kansei Group Water Use by Region (FY2016)[km3]
Top Commitment

Our Stance on
CSR

Stakeholder
Engagement

Governance

Water supply

Industrial water

GroundwaterSocial Initiatives

Environmental
Initiatives

Approaches to Recycling
Key CSR
Indicators andResults

Japan

Overseas

PolicyAbout Our
Reporting

The Calsonic Kansei Group has been consistently carrying out integrated recycling activities as avoluntary initiative for environmental conservation. Going forward, we will continue to promote inhouse recycling initiatives as well as outsourcing the recycling of waste to meet the needs of thecircular economy.

Results of Calsonic Kansei Group Recycling
Japan
Activities
In the Calsonic Kansei Group, environmentally friendly dry separation equipment is used toefficiently separate and collect materials (wash coat) from recovered catalysts used for exhaust
purifiers, which contain precious metals that are valuable resources.

127

IndexOperations to Recycle Waste from Manufacturing Plants
Japan

Overseas

Activities
Top Commitment

To make efficient use of the planet’s limited resources, the Calsonic Kansei Group is seeking toachieve zero emissions at all the Group’s locations and to reduce the amounts of materials used
and waste generated (waste for disposal + valuable resources).

Our Stance on
CSR

Operations to Recycle Waste from Manufacturing Plants
Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting128

IndexTop Commitment

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting129

Appropriate Management of Chemical Substances
Index

Top Commitment

Thorough Management of Chemical
Substances
Basic StanceJapan

Our Stance on
CSR

Overseas

PolicyChemical substances are used in products and in product manufacturing to improve quality.
However, there are concerns that these substances could have a significant impact on theenvironment, not only during the manufacturing stage, but also during their use and in the post-

Stakeholder
Engagement

consumer disposal stage.
With the increase in global environmental awareness, calls to reduce or discontinue the use ofharmful chemical substances are growing stronger every year, both in Japan and overseas.
To comply with the laws and regulations of each country and meet the requirements of our

Governancecustomers, the Calsonic Kansei Group seeks to achieve thorough risk management for products,
the manufacturing processes, purchased materials parts and processed materials, while adheringto the following fundamental principles: use as few harmful chemicals as possible, change toalternatives or eliminate as many harmful substances as possible, and properly manage harmfulSocial Initiatives

chemicals if they have to be used.
Action Pillar 1: Action on environmentally hazardous substances in products

Environmental
Initiatives

Action Pillar 2: Action on environmentally hazardous substances used in manufacturing at
plantsAction Pillar 3: Action on environmentally hazardous substances in purchased items

Key CSR
Indicators andResults

About Our
Reporting

Action Pillar (1): Action on Environmentally Hazardous
Substances in Products
Japan

Overseas

PolicyIn addition to complying with the laws and regulations of each country, including Europe’s ELV
Directive*1 and REACH regulations*2, the Calsonic Kansei Group sets voluntary targets to meetthe requirements of its customers around the world, and is working to reduce the quantity ofenvironmentally hazardous substances used in its products. It is achieving this through the
management of its internal systems and the enhancement of follow-up systems, promoting thedevelopment of alternative technologies, and building chemical management systems across theentire supply chain through the Green Procurement Guidelines.
The Group is also pursuing analysis of and prompt action regarding chemical substances inadvance of their being listed as SVHCs under the REACH regulations.
*1 ELV Directive : End of Life Vehicles Directive*2 REACH Regulations: Registration, Evaluation, Authorisation and Restriction of Chemicals*3 SVHC: Substances of Very High Concern. 173 such substances registered as of January 2017.

130

IndexTop Commitment

Action Pillar (2): Action on Environmentally Hazardous
Substances Used in Manufacturing at PlantsJapan
Our Stance on
CSR

Overseas

PolicyWhile seeking to reduce the use of chemical substances used in its manufacturing processes, theCalsonic Kansei Group is conducting proper management of those chemical substances.

Stakeholder
Engagement

We are working to ascertain the amounts of substances classified as volatile organic compounds(VOCs) in use, in order to confirm and manage the amounts of substances subject to the PRTR*
Act released, transferred, and used, and to reduce the use of environmentally hazardous
substances.

Governance* Pollutant Release and Transfer Register (PRTR) as stipulated by the Act on Confirmation, etc. of Release Amounts of SpecificChemical Substances in the Environment and Promotion of Improvements to the Management Thereof, 1999 (PRTR Act)

Social Initiatives

Results of Calsonic Kansei Group Reduction of VOC Released
Japan

Activities
Environmental
Initiatives

In Fiscal 2016, the Calsonic Kansei Group achieved a reduction in VOC use of 83.9% compared tofiscal 2000, against a mid-term target of a 30% reduction. However, the volume of use was 119
tonnes, due to increases in production volumes, which meant that the single-year target could not
be reached.

Key CSR
Indicators andResults

About Our
ReportingAchievement status
Management
item

VOC usage(t)

FY2000 (base year)
results

739

FY2015
results

FY2016
results

112

119

Comparison with
FY2000Comparison with theprevious year

83.9% reduction

6.4% increase

Results of PRTR Act Compliance by Calsonic Kansei and Group
Companies in JapanJapan

Activities

131Index

PRTR-Regulated Substance Amounts used, Released, andTransferred

Top Commitment

Our Stance on
CSR

Stakeholder
Engagement

Governance(Fiscal year)

Amount used (t)Amount released/transferred(t)Social Initiatives

Amounts of PRTR-Regulated Substances Released and Moved
Environmental
Initiatives

Key CSR
Indicators andResults

Toluene51%

Xylene13%

Ferric chloride

14%

Other

22%

About Our
Reporting132

Calsonic Kansei Group’s Pollution Prevention Initiatives
Index

Japan

Overseas

Activities
PCB(Polychlorinated Biphenyl) Management
Top Commitment

We have implemented appropriate management regulations for electrical devices containing PCBs
as waste products for special management in accordance with regulations. PCBs have beenscheduled for prompt disposal, and disposal has already been completed at some locations.

Our Stance on
CSR

Thorough Water Quality Management
We have set our voluntary management targets (80% of the regulatory value) and are conducting
stricter management than required by the regulations. By complying with discharged water

Stakeholder
Engagement

standards, we are contributing to the protection of aquatic organisms.
Thorough Air Quality Management
We have reduced our sulfur oxide (SOx) and CO2 emissions by switching to natural gas for

Governancecombustion energy and reducing energy consumption through the adoption of energy-saving
activities.
Efforts to Clean Up Soil and Groundwater and Prevent Contamination

Social Initiatives

We are addressing all current situations by focusing efforts on plants where contamination has
already occurred, implementing preventive measures and conducting thorough investigations.
We are already conducting investigations of the soil in each area, including at Group companies.

Environmental
Initiatives

These investigations are also undertaken when new companies join the Group.
Environmental Contamination Incidents and Grievances

Key CSR
Indicators andResults

Rules for collecting data on overseas environmental incidents were established in Fiscal 2011, andsuch data is managed in a way to ensure prompt action.
There were no environmental incidents with the potential to affect the environment at large in
Fiscal 2016.

About Our
Reporting

Action Pillar (3): Action on Environmentally Hazardous
Substances in Purchased Items

Japan

Overseas

PolicyThe Calsonic Kansei Group has established and operates the Calsonic Kansei Green Procurement
Guidelines, under which it confirms the chemical substances used in purchased items and thelevel of environmental management carried out by our business partners.

133IndexEnvironmental Burden Data (Material Flow)

Top Commitment

Input

Our Stance on
CSR

Total rawmaterials
190,622 t

Steel materials
43,128 t●7,809 t●64,333 t

Stakeholder
Engagement

Raw materials

Nonferrous metal

Resin materials

materials

69,826 t

76,801 t●19,359 t●36,661 t

Other
867 t
●423 tTotal energy

GovernanceSocial Initiatives

Energy5,292,638 GJ

461,867 MWh●1,968,543 GJ●461,867 MWh

Kerosene

Town gas

140 kL

Environmental
Initiatives

Key CSR
Indicators andResults

A-fuel oil
1,196 kL
●1,196 kL

LPG

Light oil
70 kL
●51 kL

Gasoline

3,855

126 kL

●1,958 km2●2,632●114 kL

Total water

Water supply

Industrial water

Groundwater●688 km2

9,647 km2

792 km2●268 km2

Total chemical
substances
Chemical
substances

Low sulfur●140 kL

1,303 km2
Water

Electricity●251 tAbout Our
Reporting134

146 km2●7 km2438 km2●414 km2

Calsonic Kansei GroupIndex

Top Commitment
Press

Welding

Resin molding

Painting

Machining

Assembly

Reusable materials

Waste for disposal

Our Stance on
CSR

Stakeholder
Engagement

GovernanceOutputSocial Initiatives

Recycling

Environmental
Initiatives

37,550 t

0t●13,394 t

●0 t

CO2

Other than CO2

211,899 t-CO2
Greenhousegases

Key CSR
Indicators andResults
Air pollution
emissions

About Our
ReportingWater
contamination
emissions0t●80,526 t-CO2

●0 t

SOx

NOx

Soot dust●0.71 t●3.97 t●0.31 t●688 km2

Discharged waterBOD

1,004 km2

●8.1 t●551 km2

Toluene/xylene

Other

●79 t

●43 t

Chemical
substances

135Environmental Accounting
Japan

Index

Overseas

The Calsonic Kansei Group has established mechanisms for the quantitative accounting andevaluation of the economic effects of environmental protection measures, the costs ofenvironmental protection, and the effects of related activities. It uses these mechanisms to achieve
Top Commitment

sustainable business operations.

Environmental Protection Costs
Environmental protection costs are the investments and expenditures related to our environmental
Our Stance on
CSR

activities, measured in monetary units.
(Unit: million yen)
Investments

Expenditures

Classification

Stakeholder
Engagement

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

Changes

FY2015FY2016

Changes

534

402

(132)

497

531

34

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

74

91

17

209

209

0

Global environmental
protection costs

Cost of energy
saving, resourcesaving, and phasingout of environmentallyhazardous
substances

451

278

(173)

55

39

(16)

Resource recycling
costs

Costs of reduction,
recycling, anddisposal of industrial
waste

9

33

24

233

283

50

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

0

0

0

35

28

(7)

Costs ofestablishment,
certification andoperation ofenvironmental
management
systems, and humanresource costs
associated withenvironmental policy
organizations

23

41

18

163

193

30

Costs of developmentof eco-friendly
products, and ofresearch anddevelopment related
to reducing
environmental
burdens

425

399

(26)

4,518

5,062

508

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

0

0

0

8

9

1

Costs of restoration of
the naturalenvironment andcompensation forenvironmental
damage

0

1

1

31

27

(4)

982

843

(139)

5,252

5,814

562

Social Initiatives

Key CSR
Indicators andResults

FY2016

Pollution prevention
costs

Governance

Environmental
Initiatives

FY2015

2. Upstream/downstreamcosts

3. Management activity
costs

About Our
Reporting
4. Environmental
research anddevelopment costs

5. Social activities costs

6. Costs of responses toenvironmental
damageTotal* Parentheses indicate a decrease from the previous fiscal year.

136

IndexEnvironmental Protection Effects
Environmental protection effects are measured from the dual perspectives of quantitative effects,
which is the evaluation of the quantity of reduction in substances that cause environmental

Top Commitment

burdens, and economic effects, which is the evaluation of the effects in monetary terms.
Economic effects are calculated as the value of cost savings as a result of environmental activities(concrete effects of energy-saving activities, etc.) and total revenue resulting from environmentally

Our Stance on
CSR

friendly activities (revenue from the sale of valuable resources, etc.)
Classification

FY2015FY2016

Effects

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

Stakeholder
Engagement

Total energy use after conversion to CO2 (t)207,013

211,899

4,886

Water consumption （km³）

1,363

1,377

14

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

GovernanceSocial Initiatives

Total volume of waste (t)36,851

37,550699

Volume recycled (t)36,79337,527734

Volume disposed (landfill volume) (t)

58

23

(35)

PRTR substances (release/transfer) (t)

110

120

10

13,274

16,683

3,409

Reduced costs through energy saving

177

125

(52)

Reduced costs related to water use

1

1

0

Revenue from sales of eco-friendly products

11,871

15,498

3,627

Revenue from sales of valuable resources

1,225

1,059

(116)

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

Environmental
Initiatives

Economic effects

Key CSR
Indicators andResults

About Our
Reporting* Parentheses indicate a decrease from the previous fiscal year.

Basic Details
1. Target Period:
FY2015 (April 2015 – March 2016)
FY2016 (April 2016 – March 2017)
2. Scope of Statistics:
Calsonic Kansei Corporation
Gunma Plant
Oppama Plant
Yoshimi Plant
Kodama Plant
Testing Research Center
R&D Center, Headquarters Calsonic Kansei

137

Group Companies in JapanCKK CorporationIndex

CKF CorporationCKP Corporation
Calsonic Kansei Utsunomiya Corporation
Calsonic Kansei Iwate Corporation

Top Commitment

Calsonic Kansei Yamagata Corporation
Tokyo Radiator Mfg. Co., Ltd.
Overseas Group Companies

Our Stance on
CSR

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

Stakeholder
Engagement

EuropeCalsonic Kansei UK Limited
Calsonic Kansei Sunderland Limited
Calsonic Kansei Spain, S.A.

GovernanceCalsonic Kansei Romania S.R.L.
Asia
Daihan Calsonic Corporation.
Calsonic Kansei Korea Corporation

Social Initiatives

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

Environmental
Initiatives

Calsonic Kansei Motherson Auto Products Limited
Calsonic Kansei Domestic Group Companies
Gunma Plant / CKK Corporation

Key CSR
Indicators andResults

Oppama Plant / CKF Corporation
Yoshimi Plant / CKP Corporation
Kodama Plant / Calsonic Kansei Utsunomiya Corporation
Testing Research Center / Calsonic Kansei Iwate Corporation
R&D Center, Headquarters / Calsonic Kansei Yamagata Corporation

About Our
ReportingTokyo Radiator Mfg. Co., Ltd.
3. Statistical Methods:
As a rule, we calculate costs in compliance with the Environmental Reporting Guidelines issued by
the Ministry of the Environment of Japan.

138

Environmental Action Plan (Fiscal 2016 Plan and Results)
Index

Japan

Overseas

Activities
Under the Calsonic Kansei Green Program 2016 (CKGP2016), the Group’s mid-term
Top Commitment

environmental program implemented between FY2011 and FY2016, the Calsonic Kansei Group
activates the PDCA cycle and conducts activities based on an Environmental Action Plan that sets
out the concrete actions for the following fiscal year. To strengthen group-wide environmental
efforts, the Global Environment Management Meeting and Environmental Energy Committee

Our Stance on
CSR

Meeting are convened twice a year to exchange information on the implementation status of the
Action Plan and achievements.
Key issue

Stakeholder
Engagement

Mid-Term Action Plan

FY2016 Plan

FY2016 Results

Improve quality of ISO
14001 activities

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

Enhance the CalsonicKansei Group
Environmental Management
Promotion System

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

Clean-up of soil andgroundwater andprevention ofcontamination

Maintain and expand soil
and groundwater
conservation efforts

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

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

Achieved 100% compliancewith regulatory values

Community
partnership
activities

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

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

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

Greenpartnership
activities

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

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

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

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

Governance
Strengthening of environmental
management promotion systems on aGroup Global basis.

Social Initiatives

Enhancementofenvironmentalrisk
management

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

Promotion ofEnvironmental
Management

139

Key issue

Mid-Term Action Plan

Index

Reduction of
CO2 emissions(Reduction ofenergyconsumption)

Top Commitment

Our Stance on
CSR

Stakeholder
Engagement

Resource
recycling

Governance
Reduction ofEnvironmental
Burdens of
Manufacturing
Operations

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Conservationof water, air,soil, andbiodiversity

About Our
Reporting

Development of
Eco-friendly
Products

Enhancementof efforts todevelopproducts that
address
environmental
issues

FY2016 Plan

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

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

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

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

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

Maintain zero landfill ratio
overseas

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

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

Reduce VOC use
Japan: 6.4% reduction
compared to FY2015(83.9% reduction comparedto FY2000)• Reduction of wateruse (CKGP 2016)
Reduce water use
intensity (total water
consumption/sales
revenue) by thepercentages listed
below by FY2016
Japan: 22.4%
reduction comparedto FY2009
Americas, Europe,and Asia: 4.0%
reduction comparedto FY2014

Reduce water use intensity
Japan: 2.0% reduction
compared to FY2015(21.4% reduction comparedto FY2009)

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

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

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

Disclose materials data tocustomers promptly

Implemented actions
according to customer
instructions (via IMDS)

Compliance with laws
and regulations andcustomer requirements,
and reduction andelimination of use ofregulated chemical
substances in products(Compliance with
European ELV Directive)(Compliance with
European REACH
regulations)(Compliance with
Tennessee’s air pollution
regulations in North
America)140

Key issue

Mid-Term Action Plan

FY2016 Plan

FY2016 Results

Use of recycled materials

Radiators, condensers,
motor fansSeparation of parts withrecyclability in mind

Airconditioner ducts

Promote the development ofeasily recyclable products

Compressors, exhaustsystems

Bolt reduction activities

Airconditioning units,compressors

Design with ease ofdisassembly in mind

Cockpit modules,
airconditioning units

Prevention of global
warming (fuelefficiency/energy
efficiency)

Promote lightweight, fuelefficient, energy-efficient
products

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

Prevention of air
pollution (purificationof exhaust gas)

Promote development of
products that ensure
effective purification of
exhaust gas

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

Noise prevention(reduction of noise
emissions)

Promote development of
products with low exhaustand noise emissions

Developed low noise
exhaust systems

Evaluation of eco-friendly products

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

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

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

Introduce three products into
the marketplace over fiscal
2015 and 2016

Introduced one product into
the market in fiscal 2016

Expansion of green procurement

Enhance the Green
ProcurementGuidelines

Promoted activities toencourage suppliers toagree to and follow ourGreen Procurement
Guidelines

Active disclosure of information on
environmental activities

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

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

Index

Reduction of waste(development ofeasily recyclable
products)

Top Commitment

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResultsGreen
procurement

About Our
Reporting
Environmental
Communication* Toyo Keizai Inc. is a book and magazine publisher specializing in politics, economics and business, based in Tokyo, Japan.

141

IndexTop Commitment

Environmental Data of Manufacturing Plants in Japan

Gunma Plant
Address：132 Shin-Nakano, Ouracho, Oura-gun, Gunma
Area：224,781m2

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

Building Area：64,352m2
Major Products：Air-conditioning units, condensers,exhaust products, metal supports

Ordinance and Agreement：Gunma Prefecture Ordinance, Oura Town Agreement, Sewage
Law
Items Regarding
Drainage Regulations

Regulation value

Results / Minimum

Results / MaximumpH

6.5～8.5

7.2

8.3

SS

30mg/ｌ or less

7.0

22.0

BOD

20mg/ｌ or less

4.1

10.0

N-Hex

3mg/ｌ or less

0.9

1.9

F

8mg/ｌ or less

0.5 or less

0.3

Zn

2mg/ｌ or less

1.0 or less

0.2

P

16mg/ｌ or less

0.3

0.6

N

120mg/ｌ or less

0.9

2.4

Cu

3mg/ｌ or less

0.1 or less

Ni

-

-

-

Fe

5mg/ｌ or less

0.1 or less

0.4

COD

-

-

-

E. coli bacteria

3000 or less

050

0.02 or lessDichloromethane

0.2mg/ｌ or lessTotal volume of water
discharge

165.33(km3)

Drain field

Discharged into a river(subsidiary stream of theTone River)

BOD average

7.125(mg/l)

Amount of pollution
load (BOD)

1.18(t)

Sox

-

Nox

-

Soot Dust-

CO2

16,815(t)142Index

Oppama Plant
Address：18 Natsushima-cho, Yokosuka City, Kanagawa
Area：22,514m2
Building Area：17,434m2

Top Commitment

Major Products：Exhaust products

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

Ordinance and Agreement：Kanagawa Prefectural Ordinance, Yokosuka Municipal
Ordinance, Sewage Law
Items Regarding
Drainage Regulations

Regulation value

Results / Minimum

Results / MaximumpH

5.8～8.6

7.4

7.8

SS

-

-

-

BOD

-

-

-

N-Hex

5mg/ｌ or less

0.5 or less

F

-

-

-

Zn

1.0mg/ｌ or less

0.1 or less

0.6

P

-

-

-

N

-

-

-

Cu

1.0mg/ｌ or less

0.1 or less

0.1

Ni

1.0mg/ｌ or less

0.1 or lessFe

3mg/ｌ or less

0.1 or less

1.3

COD

-

-

-

E. coli bacteria

-

-

-

Dichloromethane

-

-

-

Total volume of water
discharge

8.18(km )Drain field

Sewage

BOD average-Amount of pollution
load (BOD)

-

Sox

-

Nox

0.25(t)Soot Dust

0.026(t)CO2

1,204(t)3143

Index

Yoshimi Plant
Address：628 Ooaza-Kumeda Yoshimi-machi, Hiki-gun Saitama
Area：141,784m2
Building Area：49,700m2

Top Commitment

Major Products：Instrument panels, center consoles

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

Ordinance and Agreement：Saitama Prefecture OrdinanceItems Regarding
Drainage Regulations

Regulation value

Results / Minimum

Results / MaximumpH

5.8～8.6

6.7

7.5

SS

90mg/ｌ or less

1.0 or less

29.3

BOD

25mg/ｌ or less

2.6

19.0

N-Hex

5mg/ｌ or less

0.5 or less

0.7

F

-

-

-

Zn

-

-

-

P

8mg/ｌ or less

3.1

7.9

N

60mg/ｌ or less

3.7

37.4

Cu

-

-

-

Ni

-

-

-

Fe

-

-

-

COD

60mg/ｌ or less

6.4

29.1

E. coli bacteria

3000 or less

035

Dichloromethane

-

-

-

Total volume of water
discharge

5.95(km )Drain field

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

BOD average

5.95(mg/l)

Amount of pollution
load (BOD)

0.21(t)Sox

0.014(t)Nox0.101(t)Soot Dust

0.001(t)CO26,765(t)3144

Index

Kodama Plant
Address：540-7 Kyoei, Kodamacho, Honjo City, Saitama
Area：51,168m2
Building Area：15,838m2

Top Commitment

Major Products：Electronic control

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

Ordinance and Agreement：Saitama Prefecture Ordinance, Honjo Municipal OrdinanceItems Regarding
Drainage Regulations

Regulation value

Results / Minimum

Results / MaximumpH

5.8～8.6

7.2

7.9

SS

60mg/ｌ or less

3.0

20.0

BOD

25mg/ｌ or less

1.0

10.0

N-Hex

30mg/ｌ or less

3.0 or less

4.0

F

-

-

-

Zn

-

-

-

P

-

-

-

N

-

-

-

Cu

-

-

-

Ni

-

-

-

Fe

-

-

-

COD

160mg/ｌ or less

4.0

19.0

E. coli bacteria

3000 or less

30

35

Dichloromethane

-

-

-

Total volume of water
discharge

5(km )

Drain field

Discharged into a river(subsidiary stream of theTone River)

BOD average5(mg/l)Amount of pollution
load (BOD)

0.04(t)

Sox

0.054

Nox

0.338(t)Soot Dust

0.011(t)CO22,453(t)3145

Index

Testing Research Center
Address：8 Sakae-cho, Sano City, Tochigi
Area：73,829m2
Building Area：47,141m2

Top Commitment

Ordinance and Agreement：Tochigi Prefectural Ordinance, Sano Municipal Ordinance,
Sewage Law
Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
ReportingItems Regarding
Drainage Regulations

Regulation value

Results / Minimum

Results / MaximumpH

5.9～9.0

6.3

8.4

SS

600mg/ｌ or less

1.0 or less

77.3

BOD

600mg/ｌ or less

1.0 or less

152.0

N-Hex

5mg/ｌ or less

1.0 or less

F

-

-

-

Zn

-

-

-

P

-

-

-

N

-

-

-

Cu

-

-

-

Ni

-

-

-

Fe

-

-

-

COD

-

-

-

E. coli bacteria

-

-

-

Dichloromethane

-

-

-

Total volume of water
discharge

26.87(km3)

Drain field

Sewage, Misugi River

BOD average

26.87(mg/l)

Amount of pollution
load (BOD)

1.24(t)

Sox

0.018

Nox

0.094(t)Soot Dust

0.001(t)CO27,240(t)146

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

Top Commitment

Ordinance and Agreement：Saitama Prefectural Ordinance, Saitama Municipal Ordinance,
Sewage Law
Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
ReportingItems Regarding
Drainage Regulations

Regulation value

Results / Minimum

Results / MaximumpH

5.0～9.0

7.0

7.5

SS

600mg/ｌ or less

131.0

340.0

BOD

600mg/ｌ or less

68.3

197.0

N-Hex

30mg/ｌ or less

2.0

23.8

F

-

-

-

Zn

-

-

-

P

32mg/ｌ or less

1.9

4

N

240mg/ｌ or less

3.9

15.3

Cu

-

-

-

Ni

-

-

-

Fe

-

-

-

COD

-

-

-

E. coli bacteria

-

-

-

Dichloromethane

-

-

-

Total volume of water
discharge

28.2(km3)

Drain field

Sewage

BOD average

129.18(mg/l)

Amount of pollution
load (BOD)

3.64(t)

Sox

-

Nox

0.33(t)Soot Dust-

CO22,141(t)147

IndexCKK(Headquarters and Usa Plant)
Address：111 Ooaza-Waki, Usa
Area：99,146m2
Building Area：19,427m2

Top Commitment

Major Products：Instrument panels

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

Ordinance and Agreement：Ooita Prefectural Ordinance, Usa Municipal Agreement
Items Regarding
Drainage Regulations

Regulation value

Results / Minimum

Results / MaximumpH

6.0～8.6

6.7

7.5

SS

60mg/ｌ or less

3.0

23.0

BOD

60mg/ｌ or less

1.0 or less

3.0

N-Hex

2mg/ｌ or less

0.5 or less

1.0 or less

F

-

-

-

Zn

-

-

-

P

-

-

-

N

-

-

-

Cu

-

-

-

Ni

-

-

-

Fe

-

-

-

COD

60mg/ｌ or less

5.0

9.0

E. coli bacteria

-

-

-

Dichloromethane

-

-

-

Total volume of water
discharge

2(km )

Drain field

Discharged into a river(Yorimo River)

BOD average2(mg/l)Amount of pollution
load (BOD)

0.0037(t)

Sox

0.365

Nox

1.02(t)Soot Dust

0.017(t)CO26,365(t)3148

IndexCKK (Nakatsu Plant)
Address：150-3 Ooaza-Inumaru, Nakatsu City, Ooita
Area：48,646m2
Building Area：17,803m2

Top Commitment

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

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

Ordinance and Agreement：Ooita Prefectural Ordinance, Nakatsu Municipal Agreement
Items Regarding
Drainage Regulations

Regulation value

Results / Minimum

Results / MaximumpH

6.0～8.5

6.7

7.5

SS

30mg/ｌ or less

1.0 or less

15.0

BOD

30mg/ｌ or less

0.77

12.0

N-Hex

5mg/ｌ or less

0.5 or less

1.20

F

-

-

-

Zn

-

-

-

P

8mg/ｌ or less

0.03

2.2

N

60mg/ｌ or less

0.36

18.0

Cu

-

-

-

Ni

-

-

-

Fe

-

-

-

COD

-

-

-

E. coli bacteria

3000 or less

0

19.0

Dichloromethane

-

-

-

Total volume of water
discharge

3.47(km )Drain field

Discharged into a river(Inumaru River)

BOD average

7.54(mg/l)

Amount of pollution
load (BOD)

0.03(t)Sox

0.262(t)Nox1.214(t)Soot Dust

0.042(t)CO29,269(t)3149

IndexCKF
Address：5-1 Sumiyoshi, Nihonmatsu
Area：68,400m2
Building Area：13,800m2

Top Commitment

Major Products：Meters, tank units, a variety of sensors, switches

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

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

Regulation value

Results / Minimum

Results / MaximumpH

5.8～8.6

7.0

7.6

SS

70mg/ｌ or less

1.0 or less

18.4

BOD

25mg/ｌ or less

1.0 or less

1.2

N-Hex

5mg/ｌ or less

0.5 or less

0.7

F

-

-

-

Zn

-

-

-

P

-

-

-

N

-

-

-

Cu

-

-

-

Ni

-

-

-

Fe

-

-

-

COD

-

-

-

E. coli bacteria

3000 or less0-

Dichloromethane-

Total volume of water
discharge

1.2(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

-

Nox

0.114(t)Soot Dust

0.022(t)CO24,148(t)150-

IndexTokyo Radiator MFG Co., Ltd.
Address：2002-1 Endo, Fujisawa City, Kanagawa
Area：88,254m2
Building Area：41,004m2

Top Commitment

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

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

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

Regulation value

Results / Minimum

Results / MaximumpH

5.8～8.6

7.0

7.7

SS

90mg/ｌ or less

1.0 or less

19.2

BOD

60mg/ｌ or less

2.9

15.0

N-Hex

5mg/ｌ or less

0.5 or less

2.1

F

8mg/ｌ or less

0.4

1.8

Zn

2mg/ｌ or less

0.1 or less

P

-

-

-

N

-

-

-

Cu

-

-

-

Ni

-

-

-

Fe

-

-

-

COD

60mg/ｌ or less

6.7

18.0

E. coli bacteria

-

-

-

Dichloromethane

-

-

-

Total volume of water
discharge

245.8(km )Drain field

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

BOD average

7.97(mg/l)

Amount of pollution
load (BOD)

1.96(t)Sox

0.001(t)Nox0.503(t)Soot Dust

0.0073(t)CO210,059(t)3151

IndexCKP (Sano Plant)
Address：765 Aza-Ishihara, Takahagi-cho, Sano City, Tochigi
Area：12,012m2
Building Area：5,670m2

Top Commitment

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

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

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

Regulation value

ResultspH

5.0～9.0

7.2

SS

600mg/ｌ or less

1.0 or less

BOD

600mg/ｌ or less

1.0 or less

N-Hex

5mg/ｌ or less

1.0 or less

F

-

-

-

Zn

-

-

-

P

-

-

-

N

-

-

-

Cu

-

-

-

Ni

-

-

-

Fe

-

-

-

COD

-

-

-

E. coli bacteria

-

-

-

Dichloromethane

-

-

-

Total volume of water
discharge

2.9(km )Drain field

Discharged into a river(subsidiary stream of theMisugi River)

BOD average1(mg/l)Amount of pollution
load (BOD)

0.0029(t)

Sox

-

Nox

-

Soot Dust-

CO2

2,024(t)3152

IndexCKP (Itakura Plant)
Address：7 Aza-Futoi, Ooaza-Ookura, Itakura-cho, Oura-gun, Gunma
Area：16,500m2
Building Area：4,161m2

Top Commitment

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

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

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

Regulation value

Results / MinimumpH

5.8～8.6

7.2

SS

15mg/ｌ or less

5.0

BOD

15mg/ｌ or less

8.0

N-Hex

3mg/ｌ or less

1.0 or less

F

-

-

-

Zn

-

-

-

Results / Maximum

P

-

-

-

N

-

-

-

Cu

-

-

-

Ni

-

-

-

Fe

-

-

-

COD

-

-

-

E. coli bacteria

1000 or less30 or lessDichloromethane--

Total volume of water
discharge

8(km )

Drain field

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

BOD average8(mg/l)Amount of pollution
load (BOD)

0.05(t)

Sox

-

Nox

-

Soot Dust-

CO2

1,874(t)

3

153

-

IndexCKP (Tochigi Plant)
Address：144-1 Shimokoyama, Shimono City, Tochigi
Area：18,886m2
Building Area：10,497m2

Top Commitment

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

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

Ordinance and Agreement：Tochigi Prefectural Ordinance, Shimono Municipal Agreement
Items Regarding
Drainage Regulations

Regulation value

Results / Minimum

Results / MaximumpH

5.8～8.6

6.8

7.2

SS

50mg/ｌ or less

1.0 or less

1.2

BOD

30mg/ｌ or less

1.0 or less

2.2

N-Hex

5mg/ｌ or less

0.5 or less

0.5

F

-

-

-

Zn

-

-

-

P

-

-

-

N

-

-

-

Cu

-

-

-

Ni

-

-

-

Fe

-

-

-

COD

30mg/ｌ or less

1.6

2.4

E. coli bacteria

-

-

-

Dichloromethane

-

-

-

Total volume of water
discharge

2.2(km )Drain field

Discharged into a river(Sugata River)

BOD average

2.2(mg/l)

Amount of pollution
load (BOD)

0.01(t)

Sox

-

Nox

-

Soot Dust-

CO2

2,105(t)3154

IndexCalsonic Kansei Utsunomiya（CKU)
Address：11-6 Kiyohara Industrial Park, Utsunomiya City, Tochigi
Area：66,100m2
Building Area：20,864m2

Top Commitment

Major Products：Compressors for car air-conditioners, parts

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

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

Regulation value

Results / Minimum

Results / MaximumpH

5.8～8.6

7.0

7.8

SS

40mg/ｌ or less

1.0

13.2

BOD

20mg/ｌ or less

1.0

8.4

N-Hex

5mg/ｌ or less

0.5

1.0

F

-

-

-

Zn

-

-

-

P

-

-

-

N

-

-

-

Cu

-

-

-

Ni

-

-

-

Fe

-

-

-

COD

20mg/ｌ or less

3.3

9.6

E. coli bacteria

-

-

-

-

-

Dichloromethane-

Total volume of water
discharge

4.83(km3)

Drain field

Via the Kiyohara Industrial
Park Disposal Plant to the
Kinu River

BOD average

4.83(mg/l)

Amount of pollution
load (BOD)

0.01(t)

Sox

-

Nox

-

Soot Dust-

CO2

1,229(t)155

IndexCalsonic Kansei Iwate（CKI)
Address：1-27-5 Tatekawame, Waga-cho, Kitakami City, Iwate
Area：23,410m2
Building Area：9,742m2

Top Commitment

Major Products：Compressors for car air-conditioners

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

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

Regulation value

Results / Minimum

Results / MaximumpH

5.8～8.6

6.1

7.4

SS

200mg/ｌ or less

1.0

7.4

BOD

160mg/ｌ or less

2.6

16.0

N-Hex

5mg/ｌ or less

0.5

1.0

F

8mg/ｌ or less

0.05

0.15

Zn

2mg/ｌ or less

0.06

0.08

P

16mg/ｌ or less

3.6

4.6

N

120mg/ｌ or less

51.0

54.0

Cu

3mg/ｌ or less

0.01

0.014

Ni

-

-

-

Fe

10mg/ｌ or less

0.03

0.08

COD

160mg/ｌ or less

2.0

25.0

E. coli bacteria

3000 or less

30

340

Dichloromethane

-

-

-

Total volume of water
discharge

5.98(km )Drain field

Discharged into a river(Waga River)

BOD average

5.98(mg/l)

Amount of pollution
load (BOD)

0.03(t)

Sox

-

Nox

-

Soot Dust-

CO22,937(t)3156

IndexCalsonic Kansei Yamagata（CKY)
Address：190 Chuo Industrial Park, Sagae City, Yamagata
Area：10,616m2
Building Area：5,077m2

Top Commitment

Major Products：Aluminum die casting, parts processing

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

Ordinance and Agreement：Yamagata Prefectural Ordinance, Sagae City OrdinanceItems Regarding
Drainage Regulations

Regulation value

Results / Minimum

Results / MaximumpH

5.8～8.6

5.9

7.3

SS

200mg/ｌ or less

4.4

35.8

BOD

160mg/ｌ or less

1.0 or less

8.8

N-Hex

5mg/ｌ or less

0.5 or less

0.7

F

-

-

-

Zn

-

-

-

P

-

-

-

N

-

-

-

Cu

-

-

-

Ni

-

-

-

Fe

-

-

-

COD

-

-

-

E. coli bacteria

-

-

-

Dichloromethane

-

-

-

Total volume of water
discharge

16.9(km3)

Drain field

Sagae river

BOD average

4.43(mg/l)

Amount of pollution
load (BOD)

0.07(t)

Sox

-

Nox

-

Soot Dust-

CO23,605(t)157

Key CSR Indicators and Results
Index

Key CSR Issues and KPIs

Top Commitment

Sustainability Data
CKJ=CKJ

Our Stance on
CSR

J=Japan

O=Overseas ☆=Non-Group

Category

Sub-category

Organizational
Governance

Governance

Stakeholder
Engagement

FY2015
actual

FY2016
actualBoundary

0

1

2

CKJ

Outside auditors

persons

2

2

2

CKJ

Ratio of employment ofpeople with disabilities

%

●

1.85

1.93

2.07

CKJ

Ratio of female
managers

%

●

2.2

1.9

2.3

CKJ

Ratio of female
directors

persons

0

0

0

CKJ

Supply chain

Supply chain due
diligencecompanies

●

―

0

9

CKJ/J/O/☆

Conflict minerals

Number of companies
surveyed for conflictminerals(%)

companies
(%)

●

288
(99)

285
(99)

284
(99)

CKJ/J

Ratio of female
employees

%

●

7.62

7.90

9.11

CKJ

Average years ofservice (males)

years

―

―

19

CKJ

Average years ofservice (females)

years

―

―

17.5

CKJ

Number and ratio ofunion members

persons
(%)

2977
(100)

2959
(100)

3075
(100)

CKJ

Number of newgraduate recruits(males)persons

―

―

187

CKJ/J

Number of newgraduate recruits(females)persons

―

―

34

CKJ/J

Annual hours training
per employee

hours

―

23.6

13.5*

CKJ

Number of retired
employees re-hired

persons

58

167

198

CKJ

Percentage of annual
leave taken

%

64.3

73

77

CKJ

Number of employees
who took childcare
leavepersons

10

6

24

CKJ

Number of employees
who took childcare
leave (males)

persons

―

―

1

CKJ

Number of employees
who took childcare
leave (females)

persons

―

―

13

CKJ

Number of employees
who took parental leave

%

―

―

18.18

CKJ

Average hours
overtime/month

hours

19.3

22.7

CKJ

Number of employees
who took nursing careleavepersons

2

0

1

CKJ

Ratio of lost-time injury
accidents

%

0.06

0.11

0.1

CKJ/J/O

Social Initiatives

Employee data

Key CSR
Indicators andResults
Human
resourcesdevelopment

About Our
Reporting

FY2014
actualpersons

Human Rights

Environmental
Initiatives

KPI

Independent outside
directors

Diversity

Governance

Unit

Labor
Practices(Calsonic
Kansei only)Work stylereforms

Occupational
health andsafety158●

Category

Index

Climate change
actionTop Commitment

Unit

KPI

FY2014
actual

FY2015
actual

FY2016
actualBoundary

Development of ecofriendly products (2011206)

products(cumulative)

●

7

9

10

CKJ/J

Percentage reduction of
production sector CO2
emissions

J –28.3

J –29.6

J –32.3

CKJ/J

%

●

O–
20.6

O–
27.6

O–
26.7

O

Percentage reduction oflogistics sector CO2
emissions

%

●

–22.6

–34.9

–35.1

CKJ/J

Percentage reduction of
office sector CO2
emissions

%

●

–6.5

–6.1

–8.0

CKJ/J

J –26.5

J –27.0

J –26.1

CKJ/J

Waste reduction ratio%●
O –11.1

O–
16.9

O–
18.8

O

J –4.6J –7.0J –19.7

CKJ/J―

O –9.5O –2.6O

Sub-category

Our Stance on
CSR
Environment

Stakeholder
Engagement

Environmental
pollution
prevention

GovernanceSocially
Responsible
Procurement

Social Initiatives

Environmental
Initiatives

Fair Operating
Practices

Compliance

Key CSR
Indicators andResults
ConsumerIssuesAbout Our
ReportingCommunity
Involvement
andDevelopment

CustomerissuesSocialcontribution
activities

Water use reduction
ratio

%

VOC (volatile organic
compound) reduction
ratio

%

●

–84.7

–84.9

–83.9

CKJ/J

Landfill ratio

%

●

2.9

0.17

0

O

Green purchasing(percentage ofagreements obtained
from new accounts)

%

●

100

100

100

CKJ/J/O

Number of significant
compliance issue
occurrences

cases

●

0

0

1

CKJ/J/O

Percentage of
employees receiving
Code of Conduct
education

%

●

―

―

100

CKJ/J/O

Number of compliancecommendations

cases

265

350

416

CKJ/J/O

Number ofwhistleblowing cases

cases

234

309

312

CKJ/J/O

Percentage of
employees receiving
Information security
education

%

●

84

99

100

CKJ/J/O

Customer satisfaction

%

●

3.31

3.35

3.36

CKJ/J/O/☆

Total spend on social
contribution activities

1,000 yen●

20,935

9,615

10,800CKJ/J

Activities to support
future generations(number of employees
participating in TeamSKETT)

persons

―

262

283

CKJ/J

●

* In FY2016, the reporting range (number of trainees, number of training sessions) for number of training hours per employees was
expanded.

159

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

Top Commitment

Our Stance on
CSR

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

Stakeholder
Engagement

Governance

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

Environmental
Initiatives

Key CSR
Indicators andResults

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

About Our
ReportingRaising Next-Generation Children.

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

160

IndexTop Commitment

Calsonic Kansei was ranked 9th (the highest place among Japanese companies) in the 2016
Our Stance on
CSR

Channel NewsAsia Sustainability Ranking, a list of the 100 leading companies in corporate
sustainability in Asia released by Channel NewsAsia, a Singapore-based news channel.

Stakeholder
Engagement

Governance

CDP is a London-based international non-profit organization, established in 2003, that calls on
companies, cities, states and regions around the world to disclose their environmental
performance data. These disclosures are analyzed and evaluated for the use of institutional

Social Initiatives

investors and the world’s policy decision-makers. The CDP Climate Change Report 2016, a survey
on climate change initiatives, gave the Calsonic Kansei Group a grade of A- (Leadership).

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting161

IndexAbout Our Reporting

Report Scope and Structure
Top Commitment

The Calsonic Kansei Group published its first Sustainability Report in 2014, reporting on its ideas
Our Stance on
CSR

and various initiatives as a communication tool to stakeholders and as part of efforts to release
information about its Corporate Social Responsibility (CSR) activities.
For Sustainability Report 2017, the fourth issue of this report, we have reviewed the structure,
adopting a more website-centered structure that will enable us to release information in a more

Stakeholder
Engagement

timely manner and make it easier for stakeholders to access the information they require.
Further, to enable those accessing this information for the first time to become familiar with theGroup’s sustainability initiatives, we have also produced a separate summary version, which
presents the information in a highly visual format.

GovernanceApplicable Scope
Calsonic Kansei Corporation and Group companies
Social Initiatives

Applicable Term
Mainly fiscal 2016 (April 1, 2016–March 31, 2017)
Environmental
Initiatives

Publication Date
Key CSR
Indicators andResults

June 2017 (previous report: June 2016; next report: June 2018 (scheduled) )Reference Guidelines
About Our
ReportingGlobal Reporting Initiative (GRI) Sustainability Reporting Guidelines (G4)

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

162

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

Top Commitment

Our Stance on
CSR

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

We look forward to receiving your opinions and comments
regarding this report.
2-1917 Nisshin-cho, Kita-ku, Saitama City, Saitama 331-8501
CSR/Public Relations & IR Group
Corporate Planning Division

Stakeholder
Engagement

Calsonic Kansei Corporation
Online Contact Form

Governance

Please Note:
This report contains forward-looking statements. Please be aware that actual results may differ
due to various industry-related factors. In case of doubt or difference of interpretation, theSocial Initiatives

Japanese version shall prevail over the English version.

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting163

IndexTop Commitment

GRI Guideline Comparison Table

General Standard Disclosures
Strategy and Analysis
Item

Our Stance on
CSR

Indicator

Relevant sections

a. Provide a statement from the most seniordecision-maker of the organization (such as
CEO, chair, or equivalent senior position)

G4-1

about the relevance of sustainability to the

Top Commitment

organization and the organization's strategy

Stakeholder
Engagement

for addressing sustainability.

Top Commitment
G4-2

a. Provide a description of key impacts, risks,and opportunities.

Financial Statements

Risk Management

Governance

Organizational Profile
Social Initiatives

Environmental
Initiatives

Item

Indicator

G4-3

a. Report the name of the organization.

G4-4

G4-5

Key CSR
Indicators andResults

Relevant sections

a. Report the primary brands, products, andservices.

a. Report the location of the organization's
headquarters.

About Us

Products

About Us

a. Report the number of countries where theorganization operates, and names of
G4-6

About Our
Reportingcountries where either the organization has

About Ussignificant operations or that are specifically

Global Network

relevant to the sustainability topics coveredin the report.

G4-7

a. Report the nature of ownership and legal
form.

About Us
Financial Statements

a. Report the markets served (including
G4-8

geographic breakdown, sectors served, andtypes of customers and beneficiaries).

164

About Us

Item

Index

Indicator

Relevant sections

a. Report the scale of the organization,
including:
Total number of employees
Total number of operations

Top Commitment

G4-9

Net sales (for private sector
organizations) or net revenues (for public

About Us

sector organizations)
Total capitalization broken down in termsof debt and equity (for private sector
organizations)

Our Stance on
CSR

Quantity of products or services provided

a. Report the total number of employees by
employment contract and gender.

Stakeholder
Engagement

b. Report the total number of permanent
employees by employment type and gender.
c. Report the total workforce by employees andsupervised workers and by gender.
d. Report the total workforce by region and

Governancegender.
G4-10

e. Report whether a substantial portion of theorganization's work is performed by workers

Employee Data

who are legally recognized as selfemployed, or by individuals other thanSocial Initiatives

employees or supervised workers, including
employees and supervised employees ofcontractors.
f. Report any significant variations in
employment numbers (such as seasonal

Environmental
Initiatives

variations in employment in the tourism oragricultural industries).

a. Report the percentage of total employees

Key CSR
Indicators andResults

G4-11

covered by collective bargaining
agreements.

Stakeholder Engagement/Stakeholder
Initiatives/Labor-Management Relations

Together with our Business Partners/Basic
G4-12

a. Describe the organization's supply chain.

About Our
Reporting

StanceGlobal Network

a. Report any significant changes during thereporting period regarding the organization's
size, structure, ownership, or its supply
chain, including:
Changes in the location of, or changes
in, operations, including facility openings,
closings, and expansions
G4-13

Changes in the share capital structure
and other capital formation,
maintenance, and alteration operations(for private sector organizations)
Changes in the location of suppliers, thestructure of the supply chain, or in
relationships with suppliers, including
selection and termination

165

Top Commitment

Item

Indicator

Relevant sections

Index

Corporate Governance/Compliance withJapan’s Corporate Governance Codea. Report whether and how the precautionary
G4-14

approach or principle is addressed by theorganization.

Compliance/Basic Stance
Risk Management/Basic Stance

Top Commitment

Environmental Policy

a. List externally developed economic,

Our Stance on
CSR(FY2016)

G4-15

environmental and social charters,

Report Scope and Structure

principles, or other initiatives to which theContribution to Sustainable Development

organization subscribes or which itendorses.

Goals (SDGs)

a. List memberships of associations (such as

Stakeholder
Engagement

industry associations) and national orinternational advocacy organizations inwhich the organization:
G4-16

Holds a position on the governance body
Participates in projects or committees

Governance

Provides substantive funding beyondroutine membership dues
Views membership as strategic

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

166

Stakeholder Engagement/Participation in
Outside Organizations and Other Initiatives

Identified Material Aspects and Boundaries
Index
Item

Indicator

Relevant sections

a. List all entities included in the organization's
consolidated financial statements or

Top Commitment

equivalent documents.
G4-17

Financial Statements

b. Report whether any entity included in theorganization's consolidated financial
statements or equivalent documents is notcovered by the report.

Our Stance on
CSR

a. Explain the process for defining the reportcontent and the Aspect Boundaries.
G4-18

Report Scope and Structureb. Explain how the organization has
implemented the Reporting Principles for

Stakeholder
Engagement

Defining Report Content.

G4-19

a. List all the material Aspects identified in theReport Scope and Structure

process for defining report content.

Governancea. For each material Aspect, report the Aspect
Boundary within the organization, as follows:
Report whether the Aspect is material
within the organization

Social Initiatives

If the Aspect is not material for all entities
within the organization (as described in
G4-17), select one of the following two
approaches and report either:
G4-20

Environmental
Initiatives

Our Stance on CSR--The list of entities or groups of entities

Report Scope and Structure

included in G4-17 for which the Aspect is
not material or--The list of entities or groups of entities
included in G4-17 for which the Aspects
is material

Key CSR
Indicators andResults

Report any specific limitation regarding
the Aspect Boundary within theorganizationa. For each material Aspect, report the Aspect

About Our
ReportingBoundary outside the organization, as
follows:
Report whether the Aspect is material
outside of the organization
If the Aspect is material outside of theorganization, identify the entities, groups
G4-21

Our Stance on CSR

of entities or elements for which theReport Scope and Structure

Aspect is material.
In addition, describe the geographicallocation where the Aspect is material forthe entities identified
Report any specific limitation regarding
the Aspect Boundary outside theorganization

a. Report the effect of any restatements of
G4-22

information provided in previous reports, andthe reasons for such restatements.

167

－

Item

Index

Indicator

Relevant sections

a. Report significant changes from previous
G4-23

reporting periods in the Scope and Aspect
Boundaries.

Top Commitment

Our Stance on
CSR

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting168－

Stakeholder Engagement
Index
Item

G4-24

Indicator

Relevant sections

a. Provide a list of stakeholder groups engaged
by the organization.

Our Stance on CSR

Top Commitment
a. Report the basis for identification andG4-25

selection of stakeholders with whom to

Our Stance on CSR

engage.

Our Stance on
CSR

a. Report the organization's approach to
stakeholder engagement, including
frequency of engagement by type and by
G4-26

stakeholder group, and an indication ofwhether any of the engagement was

Stakeholder
Engagement

Stakeholder Engagement/Stakeholder
Initiatives

undertaken specifically as part of the report
preparation process.

a. Report key topics and concerns that havebeen raised through stakeholder

Governanceengagement, and how the organization has
G4-27

responded to those key topics and concerns,
including through its reporting. Report the
stakeholder groups that raised each of the
key topics and concerns.

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting169

Stakeholder Engagement/Stakeholder
Initiatives

Report Profile
Index
Item

G4-28

Indicator

Relevant sections

a. Reporting period (such as fiscal or calendar
year) for information provided.

Report Scope and Structure

Top Commitment

Our Stance on
CSR

G4-29

a. Date of most recent previous report (if any).

Report Scope and Structure

G4-30

a. Reporting cycle (such as annual, biennial).

Report Scope and Structure

G4-31

Stakeholder
Engagementa. Provide the contact point for questions
regarding the report or its contents.

Report Scope and Structure

a. Report the 'in accordance' option theorganization has chosen.
b. Report the GRI Content Index for the chosen
option (see tables below).

Governance

G4-32

c. Report the reference to the External

GRI Guideline Comparison Table

Assurance Report, if the report has beenexternally assured. GRI recommends theuse of external assurance but it is not arequirement to be 'in accordance' with the
Guidelines.

Social Initiatives
a. Report the organization's policy and current
practice with regard to seeking external
assurance for the report.
b. If not included in the assurance report

Environmental
Initiatives

accompanying the sustainability report,
report the scope and basis of any external
G4-33

assurance provided.

Financial Statements

c. Report the relationship between the

Key CSR
Indicators andResultsorganization and the assurance providers.
d. Report whether the highest governancebody or senior executives are involved inseeking assurance for the organization's
sustainability report.

About Our
Reporting170

Governance
Index
Item

Indicator

Relevant sections

a. Report the governance structure of theorganization, including committees of the

Top Commitment

G4-34

highest governance body. Identify any

Corporate Governance/Corporate

committees responsible for decision-making

Governance Structure (FY2016)

on economic, environmental and social
impacts.

Our Stance on
CSR

a. Report the process for delegating authority
G4-35

for economic, environmental and social

Corporate Governance/Corporate

topics from the highest governance body toGovernance Structure (FY2016)senior executives and other employees.

Stakeholder
Engagement

a. Report whether the organization has

G4-36

appointed an executive-level position or

Corporate Governance/Corporate

positions with responsibility for economic,

Governance Structure

environmental and social topics, and(FY2016)/Committees Responsible forwhether post holders report directly to theInternal Control

highest governance body.

Governancea. Report processes for consultation between
stakeholders and the highest governanceG4-37

Social Initiatives

body on economic, environmental and social

Corporate Governance/Corporate

topics. If consultation is delegated, describe

Governance Structure (FY2016)

to whom and any feedback processes to thehighest governance body.

a. Report the composition of the highest
governance body and its committees by:Environmental
Initiatives

Executive or non-executive
Independence
Tenure on the governance body

Key CSR
Indicators andResults

Number of each individual's otherG4-38

significant positions and commitments,

Corporate Governance/Corporate

and the nature of the commitments

Governance Structure (FY2016)

GenderMembership of under-represented social

About Our
ReportinggroupsCompetences relating to economic,
environmental and social impacts
Stakeholder representation

a. Report whether the Chair of the highest
governance body is also an executive officer
G4-39(and, if so, his or her function within theorganization's management and the reasonsfor this arrangement).

171

Corporate Governance/Corporate
Governance Structure (FY2016)

Item

Index

Indicator

Relevant sections

a. Report the nomination and selection
processes for the highest governance bodyand its committees, and the criteria used fornominating and selecting highest
governance body members, including:
Whether and how diversity is considered

Top Commitment
G4-40

Establishment of Systems to Ensure Proper

Whether and how independence isand Legitimate Business Activities (Basic

considered

Principles and Systems of CK’s Internal

Whether and how expertise andControl)

experience relating to economic,

Our Stance on
CSR

environmental and social topics are
considered
Whether and how stakeholders(including shareholders) are involved

Stakeholder
Engagement

a. Report processes for the highest
governance body to ensure conflicts ofinterest are avoided and managed. Report
whether conflicts of interest are disclosed to
stakeholders, including, as a minimum:

Governance

G4-41

Cross-board membership

Corporate Governance/Corporate
Governance Structure (FY2016)

Cross-shareholding with suppliers andother stakeholders
Existence of controlling shareholder
Related party disclosures

Social Initiatives

a. Report the highest governance body's andsenior executives' roles in the development,

Environmental
Initiatives

G4-42

approval, and updating of the organization'sCorporate Governance/Corporate

purpose, value or mission statements,

Governance Structure (FY2016)

strategies, policies, and goals related toeconomic, environmental and social impacts.

Key CSR
Indicators andResultsa. Report the measures taken to develop andG4-43

enhance the highest governance body's

Corporate Governance/Corporatecollective knowledge of economic,

Governance Structure (FY2016)environmental and social topics.

a. Report the processes for evaluation of the

About Our
Reportinghighest governance body's performance withrespect to governance of economic,
environmental and social topics. Report
whether such evaluation is independent or
not, and its frequency. Report whether such
G4-44

evaluation is a self-assessment.
b. Report actions taken in response toevaluation of the highest governance body's
performance with respect to governance ofeconomic, environmental and social topics,
including, as a minimum, changes inmembership and organizational practice.

172

Corporate Governance/Corporate
Governance Structure (FY2016)

Item

Index

Indicator

Relevant sections

a. Report the highest governance body's role in
the identification and management of
economic, environmental and social impacts,
risks, and opportunities. Include the highest
governance body's role in the

Top Commitment

G4-45

implementation of due diligence processes.
b. Report whether stakeholder consultation is

Corporate Governance/Corporate
Governance Structure (FY2016)used to support the highest governancebody's identification and management of
economic, environmental and social impacts,
risks, and opportunities.

Our Stance on
CSR

a. Report the highest governance body's role inreviewing the effectiveness of theG4-46

organization's risk management processes
for economic, environmental and social

Stakeholder
Engagement

Corporate Governance/Corporate
Governance Structure (FY2016)

topics.

a. Report the frequency of the highest
G4-47

Governancegovernance body's review of economic,

Corporate Governance/Corporate

environmental and social impacts, risks, andGovernance Structure (FY2016)

opportunities.

a. Report the highest committee or position thatformally reviews and approves theSocial Initiatives

G4-48

organization's sustainability report and

Our Stance on CSR

ensures that all material Aspects arecovered.

a. Report the process for communicating

Environmental
Initiatives

G4-49

critical concerns to the highest governance

Our Stance on CSR

body.

a. Report the nature and total number of critical

Key CSR
Indicators andResults

concerns that were communicated to theG4-50

highest governance body and themechanism(s) used to address and resolvethem.

About Our
Reporting

173

Corporate Governance/Corporate
Governance Structure (FY2016)

Item

Index

Indicator

Relevant sections

a. Report the remuneration policies for thehighest governance body and senior
executives for the below types of
remuneration:
Fixed pay and variable pay:

Top Commitment－ --Performance-based pay－ --Equity-based pay－ --Bonuses－ --Deferred or vested shares

Our Stance on
CSR

Sign-on bonuses or recruitment incentive
G4-51

payments

IR

Termination payments
Clawbacks

Stakeholder
Engagement

Retirement benefits, including thedifference between benefit schemes andcontribution rates for the highest
governance body, senior executives, andall other employees
b. Report how performance criteria in the

Governanceremuneration policy relate to the highest
governance body's and senior executives'
economic, environmental and social
objectives.

Social Initiatives

a. Report the process for determining
remuneration. Report whether remuneration
consultants are involved in determining
G4-52

remuneration and whether they areIR

independent of management. Report any

Environmental
Initiatives

other relationships which the remuneration
consultants have with the organization.

a. Report how stakeholders' views are sought

Key CSR
Indicators andResults

and taken into account regardingG4-53

remuneration, including the results of votesIR

on remuneration policies and proposals, if
applicable.

a. Report the ratio of the annual total

About Our
Reportingcompensation for the organization's highestpaid individual in each country of significant
G4-54

operations to the median annual totalIR

compensation for all employees (excluding
the highest-paid individual) in the same
country.

a. Report the ratio of percentage increase inannual total compensation for theorganization's highest-paid individual in eachG4-55

country of significant operations to themedian percentage increase in annual totalcompensation for all employees (excluding
the highest-paid individual) in the same
country.

174

IREthics and Integrity
Index
Item

Indicator

Relevant sections

a. Describe the organization's values,
G4-56

Top Commitment

principles, standards and norms of behavior
such as codes of conduct and codes of
ethics.

Top Commitment
Our Stance on CSR
Basic Policy for Human Rights

a. Report the internal and external mechanisms

Our Stance on
CSR

for seeking advice on ethical and lawful
G4-57

behavior, and matters related toCompliance/Compliance Promotion Systemorganizational integrity, such as helplines oradvice lines.

a. Report the internal and external mechanisms

Stakeholder
Engagement

for reporting concerns about unethical or
G4-58

unlawful behavior, and matters related toCompliance/Spreading Awareness oforganizational integrity, such as escalation

Compliancethrough line management, whistleblowing
mechanisms or hotlines.

Governance

SPECIFIC STANDARD DISCLOSURESDISCLOSURES ON MANAGEMENT APPROACH
Social Initiatives
Item

Indicator

Relevant sections

a. Report why the Aspect is material. Report
the impacts that make this Aspect material.

Environmental
Initiatives

b. Report how the organization manages thematerial Aspect or its impacts.

Key CSR
Indicators andResults

G4-DMA

Our Stance on CSR
CSR Mid-Term Plan

c. Report the evaluation of the management
approach, including:
The mechanisms for evaluating theeffectiveness of the management approach
The results of the evaluation of the

About Our
Reporting

Key CSR Issues and KPIs

management approach
Any related adjustments to the management
approach175

Key CSR Issues and KPIs

Economic
Index
Item

Indicator

Relevant sections

G4-EC1

irect economic value generated anddistributed

IR

Top Commitment

IR

Economic
Performance

G4-EC2

Environmental

Financial implications and other risks andopportunities for the organization's
activities due to climate changeManagement/Strengthening
Environmental Manageme

Our Stance on
CSR

Environmental Accounting

Stakeholder
Engagement

G4-EC3Coverage of the organization's defined
benefit plan obligations－

G4-EC4

Financial assistance received fromgovernment－

G4-EC5

Ratios of standard entry level wage by
gender compared to local minimum wage
at significant locations of operation－

G4-EC6

Proportion of senior management hiredfrom the local community at significant
locations of operation－

G4-EC7Development and impact of infrastructure
investments and services supported－

G4-EC8Significant indirect economic impacts,
including the extent of impacts

G4-EC9Proportion of spending on local suppliers
at significant locations of operation

MarketPresence

GovernanceIndirect
Economic
Impacts

Social Initiatives
Procurement
Practices

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting176

Environmental Accounting－

Environmental
Index

Top Commitment

Item

Indicator

Relevant sections

G4-EN1

Materials used by weight or volume

G4-EN2

Percentage of materials used that arerecycled input materials

G4-EN3

Direct energy consumption within theorganization

Approaches to resources
conservation and recycling

Materials

Our Stance on
CSR

Approaches to resources
conservation and recycling

Environmental Burden Data (Material
Flow)Environmental Accounting

Stakeholder
Engagement

Environmental Burden Data (Material
G4-EN4

Energy consumption outside of theorganization

Flow)
Environmental Accounting

Approaches to Climate

Governance

Change/Results of Calsonic Kansei
G4-EN5

Energy intensity

EnergyGroup CO2 Emissions Reduction
Environmental Accounting

Social Initiatives

Environmental Management/MidG4-EN6

Reduction of energy consumption

Term Environmental Plan: CalsonicKansei Green Program 2016
Environmental Accounting

Environmental
Initiatives

Environmental Management/MidG4-EN7

Reductions in energy requirements ofproducts and services

Term Environmental Plan: CalsonicKansei Green Program 2016
Environmental Accounting

Key CSR
Indicators andResults

Environmental Burden Data (Material
Flow)
G4-EN8

Total water withdrawal by source

Approaches to resources
conservation and recycling/Reduction

About Our
Reportingof water use

Environmental Burden Data (Material
Flow)
Water

G4-EN9Water sources significantly affected bywithdrawal of water

Approaches to resources
conservation and recycling/Reductionof water use

Environmental Management/MidTerm Environmental Plan: Calsonic
G4-EN10Percentage and total volume of water
recycled and reused

Kansei Green Program 2016
Approaches to resources
conservation and recycling/Reductionof water use

177

IndexTop Commitment

Item

Indicator

G4-EN11

Operational sites owned, leased,managed in, or adjacent to, protectedareas and areas of high biodiversity value
outside protected areas

G4-EN12

Description of significant impacts ofactivities, products, and services on
biodiversity in protected areas and areasof high biodiversity value outside
protected areas

G4-EN13

Habitats protected or restored－

G4-EN14

Total number of IUCN Red List species
and national conservation list species with
habitats in areas affected by operations,by level of extinction risk－

G4-EN15

Direct greenhouse gas (GHG) emissions(Scope 1)

Biodiversity

Our Stance on
CSR

Relevant sections

Environmental Action Plan and
Results

Social Contribution Activities/Creatinga beautiful local environment

Approaches to Climate
Change/Results of Calsonic KanseiGroup CO2 Emissions Reduction

Stakeholder
Engagement

Approaches to Climate
Change/Results of Calsonic Kansei
G4-EN16

Energy indirect greenhouse gas (GHG)
emissions (Scope 2)Group CO2 Emissions Reduction
Approaches to Climate

Governance

Change/Activity Report

G4-EN17

Social Initiatives

Environmental

Other indirect greenhouse gas (GHG)
emissions (Scope 3)

Management/Strengthening
Environmental Management

Emissions

G4-EN18

Environmental
Initiatives

G4-EN19

Key CSR
Indicators andResults

About Our
Reporting
Eff luents andWaste

Approaches to Climate

Greenhouse gas (GHG) emissions
intensity

Change/Results of Calsonic KanseiGroup CO2 Emissions Reduction

Approaches to Climate

Reduction of greenhouse gas (GHG)
emissions

Change/Results of Calsonic KanseiGroup CO2 Emissions Reduction

G4-EN20

Emissions of ozone-depleting substances(ODS)

G4-EN21

NOx, SOx, and other significant air
emissions

Environmental Data of Manufacturing

G4-EN22

Total water discharge by quality anddestination

Environmental Burden Data (Material

G4-EN23

Total weight of waste by type anddisposal method

Environmental Burden Data (Material

G4-EN24

Total number and volume of significant
spills

G4-EN25

Weight of transported, imported,
exported, or treated waste deemedhazardous under the terms of the Basel
Convention Annex I, II, III, and VIII, andpercentage of transported waste shippedinternationally178

Approaches to Climate Change

Plants in Japan

Flow)

Flow)

－

Appropriate Management of Chemical
Substances/Basic StanceItem

Indicator

G4-EN26

Identity, size, protected status, andbiodiversity value of water bodies andrelated habitats significantly affected by
the organization's discharges of waterand runoff

Index

Relevant sections

Appropriate Management of Chemical
Substances/Action Pillar (2): Action
on Environmentally Hazardous
Substances Used in Manufacturing at
PlantsTop Commitment
Extent of impact mitigation ofenvironmental impacts of products andservices

Environmentally-Conscious

G4-EN28

Percentage of products sold and theirpackaging materials that are reclaimed bycategory

Environmental Burden Data (Material

G4-EN29

Monetary value of significant fines andtotal number of non-monetary sanctions
for non-compliance with environmental
laws－Transport

G4-EN30

Significant environmental impacts oftransporting products and other goods
and materials used for the organization's
operations, and transporting members of
the workforce－

Overall

G4-EN31

Total environmental protection
expenditures and investments by type－

G4-EN32

Percentage of new suppliers that werescreened using environmental criteria－

G4-EN33

Significant actual and potential negativeenvironmental impacts in the supply chain
and actions taken－

G4-EN34

Number of grievances about
environmental impacts filed, addressed,
and resolved through formal grievancemechanisms

G4-EN27

Our Stance on
CSR

Stakeholder
Engagement

Monozukuri/Development of EcoFriendly Products

Products andServices

Compliance

Flow)

GovernanceSocial Initiatives

Supplier
Environmental
Assessment

Appropriate Management of Chemical

Environmental
Initiatives

Environmental
Grievance
Mechanisms

Substances/Action Pillar (2): Action
on Environmentally Hazardous
Substances Used in Manufacturing at
PlantsKey CSR
Indicators andResults

About Our
Reporting179

Labor Practices and Decent Work
Index
Item

Indicator

G4-LA1

Total number and rate of new employee
hires and employee turnover by age
group, gender, and region

G4-LA2

Benefits provided to full-time employeesthat are not provided to temporary or
part-time employees, by significant
locations of operation

G4-LA3Return to work and retention rates afterparental leave, by gender.

G4-LA4

Minimum notice periods regarding
operational changes, including whether
these are specified in collective
agreements－

G4-LA5Percentage of total workforce
represented in formal joint
management-worker health and safetycommittees that help monitor andadvise on occupational health andsafety programs－

G4-LA6

Type of injury and rates of injury,
occupational diseases, lost days, andabsenteeism, and total number of workrelated fatalities, by region and bygenderTop Commitment
Employment

Our Stance on
CSR
Labor/Management
Relations

Stakeholder
Engagement

GovernanceOccupational
Health and Safety
G4-LA7

Social Initiatives

G4-LA8Environmental
Initiatives

G4-LA9Key CSR
Indicators andResults

About Our
ReportingTraining and
Education

G4-LA10G4-LA11

Relevant sections

Employee Data－

Employee Data

Protecting the Health and Safety of
our Employees/Health and Safety
Structure

Protecting the Health and Safety ofWorkers with high incidence or high riskof diseases related to their occupation

our Employees/Health and Safety
Structure

Protecting the Health and Safety of

Health and safety topics covered informal agreements with trade unions

our Employees/Health and Safety
Structure

Human Resources Development to

Average hours of training per year per
employee by gender, and by employee
category

Expand Individual
Capabilities/Introduction of the Skills
Meister System

Human Resources Development to

Programs for skills management andlifelong learning that support thecontinued employability of employees
and assist them in managing career
endingExpand Individual
Capabilities/Systems for Raising
Incentive

Human Resources Development toPercentage of employees receiving
regular performance and careerdevelopment reviews, by gender and by
employee category

Diversity and Equal
Opportunity

G4-LA12Composition of governance bodies andbreakdown of employees per employee
category according to gender, agegroup, minority group membership, andother indicators of diversity

Equal
Remuneration for
Women and Men

G4-LA13

Ratio of basic salary and remunerationof women to men by employee
category, by significant locations ofoperation

180

Expand Individual
Capabilities/Systems for Raising
Incentive

Promotion of Diversity

－

Item

Indicator

Relevant sections

G4-LA14

Percentage of suppliers that werescreened using labor practices criteria

Index

Respecting Human Rights/Human
Rights Due Diligence in the Supply
Chain

Supplier
Assessment forLabor Practices

Top Commitment

Our Stance on
CSR

G4-LA15

Labor Practices
Grievance
Mechanisms

G4-LA16Significant actual and potential negative
impacts for labor practices in the supply
chain and actions taken

Together with our Business

Number of grievances about labor
practices filed, addressed, and resolved
through formal grievance mechanisms

Respecting Human Rights/Human

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

181

Partners/Seeking Cooperation with
CSR

Rights Education and Training

Human Rights
Index
Item

Indicator

G4-HR1

Total number and percentage ofsignificant investment agreements andcontracts that include human rights
clauses or that underwent human rights
screening

Top Commitment

Relevant sections
Together with our Business
Partners/Response to Conflict
Materials

Investment

Our Stance on
CSR

Stakeholder
Engagement

G4-HR2

Total hours of employee training on
policies and procedures concerning
aspects of human rights that are relevant
to operations, including the percentage of
employees trained

Nondiscrimination

G4-HR3

Total number of incidents of discriminationand corrective actions taken

Freedom of
Association
and Collective
Bargaining

G4-HR4

Operations and suppliers identified inwhich the right to exercise freedom of
association and collective bargaining may
be violated or at significant risk, andactions taken to support these rights

Child Labor

G4-HR5

Operations and suppliers identified ashaving significant risk for incidents of childlabor, and measures taken to contributeto the effective abolition of child labor

Respecting Human Rights/Human
Rights Education and Training－

Basic Policy for Human Rights

Respecting Human Rights/For theProtection of Human Rights, Including
Our Supply Chain

Governance

Security
Practices

G4-HR7

Percentage of security personnel trainedin the organization's human rights policies
or procedures that are relevant tooperations－

Indigenous
Rights

G4-HR8

Total number of incidents of violations
involving rights of indigenous peoples andactions taken－

Assessment

G4-HR9Total number and percentage of
operations that have been subject tohuman rights reviews or impact
assessments

G4-HR10Percentage of new suppliers that werescreened using human rights criteria

Key CSR
Indicators andResults

About Our
ReportingRespecting Human Rights/For the

G4-HR6Social Initiatives

Environmental
Initiatives

Operations and suppliers identified ashaving significant risk for incidents offorced or compulsory labor, andmeasures to contribute to the eliminationof all forms of forced or compulsory labor

Forced orCompulsory
Labor

Supplier
Human Rights
Assessment

Protection of Human Rights, Including
Our Supply Chain

Respecting Human Rights/Human
Rights Education and Training－

Respecting Human Rights/Human
Rights Due Diligence in the Supply
G4-HR11

Chain

Significant actual and potential negative
human rights impacts in the supply chain
and actions taken

Together with our Business
Partners/Promotion of Socially
Responsible Procurement

Human Rights
Grievance
Mechanisms

G4-HR12

Number of grievances human rights
impacts filed, addressed and resolved
through formal grievance mechanisms

182－

Society
Index

Top Commitment

Item

Indicator

G4-SO1

Percentage of operations with
implemented local community
engagement, impact assessments, anddevelopment programs

G4-SO2

Operations with significant potential or
actual negative impacts on local
communities

G4-SO3

Total number and percentage and ofoperations assessed for risks related tocorruption and the significant risks
identified

G4-SO4

Communication and training on anticorruption policies and procedures

G4-SO5

Confirmed incidents of corruption andactions taken－

Public Policy

G4-SO6

Total value of political contributions bycountry and recipient/beneficiary－

Anticompetitive
Behavior

G4-SO7

Total number of legal actions for anticompetitive behavior, anti-trust, andmonopoly practices and their outcomes－

Compliance

G4-SO8

Monetary value of significant fines andtotal number of non-monetary sanctions
for non-compliance with laws andregulations－

G4-SO9Percentage of new suppliers that werescreened using criteria for impacts onsociety

Local
Communities

Our Stance on
CSR

Anti-corruption

Stakeholder
Engagement

GovernanceSocial Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

Supplier
Assessment for
Impacts onSociety

Grievance
Mechanisms
for Impacts onSociety

Relevant sections
Social Contribution Activities/Activities
Expenditure

Risk Management/Risk Management
Promotion System－

Compliance/Spreading Awareness ofCompliance

Together with our Business
Partners/Response to Conflict
Materials

G4-SO10Significant actual and potential negative
impacts on society in the supply chain
and actions taken－

G4-SO11

Number of grievances about impacts onsociety files, addressed, and resolved
through formal grievance mechanisms－

About Our
Reporting183

Product Responsibility
Index

Top Commitment

Item

Indicator

G4-PR1

Percentage of significant product andservice categories for which health andsafety impacts are assessed for
improvement

G4-PR2

Total number of incidents of noncompliance with regulations andvoluntary codes concerning the healthand safety impacts of products andservices during their life cycle, by type ofoutcomes

G4-PR3

Type of product and service information
required by the organization's proceduresfor product and service information andlabeling, and percentage of significant
product and service categories subject tosuch information requirements

Customer
Health and
SafetyOur Stance on
CSR

Stakeholder
Engagement

Environmental
Initiatives

Key CSR
Indicators andResults

Quality Management/Initiatives to
Improve Quality and Reliability

Quality Management/Initiatives to
Improve Quality and Reliability

Quality Management
Global Code of Conduct for CalsonicKansei Group

G4-PR4

Total number of incidents of noncompliance with regulations andvoluntary codes concerning product andservice information and labeling, by typeof outcomes

G4-PR5Results of surveys measuring customer
satisfaction

G4-PR6

Sale of banned or disputed products－

G4-PR7

Total number of incidents of noncompliance with regulations andvoluntary codes concerning marketing
communications, including advertising,promotion, and sponsorship by type ofoutcomes－

CustomerPrivacy

G4-PR8

Total number of substantiated complaints
regarding breaches of customer privacy
and losses of customer data－

Compliance

G4-PR9

Monetary value of significant fines for
non-compliance with laws andregulations concerning the provision anduse of products and services－

Product andService Labeling

GovernanceSocial Initiatives

Relevant sections

MarketingCommunications

About Our
Reporting184－

Stakeholder
Engagement/Stakeholder Initiatives

IndexTop Commitment

ISO Comparison Table

ISO 26000 Coresubjects

IssuesRelevant sections

Top Commitment

Our Stance on
CSR

Organizational
governance

Organizational governance

Our Stance on CSR
Corporate GovernanceComplianceDue diligence

Stakeholder
Engagement

Human rights risk situations
Avoidance of complicity
Human rights

Governance

Resolving grievances
Discrimination and vulnerable groups

Respecting Human Rights

Civil and political rights
Economic, social and cultural rights
Fundamental principles and rights at work

Social Initiatives
Employment and employment relationships

Labour Practices

Environmental
Initiatives

the Individual and Diversity

Social dialogue

Protecting the Health and Safety of our

Health and safety at work
Human development and training in theworkplace

Key CSR
Indicators andResults

Creating an Organization that Values

Conditions of work and social protection

Employees
Human Resources Development to
Expand Individual Capabilities

Environmental Management
Prevention of pollution
Sustainable resource use
The environment

About Our
Reporting

Climate change mitigation and adaptation
Protection of environment, biodiversity andrestoration of natural habits

Environmentally-Conscious
Monozukuri
Approaches to Climate Change
Approaches to resources conservation
and recycling
Appropriate Management of Chemical
Substances

Anti–corruption
Responsible political involvement
Fair operating practices

Fair competition

Corporate GovernanceCompliance

Promoting social responsibility in the value
chain
Respect for property rights

185

Together with our Business Partners

ISO 26000 Coresubjects

IssuesRelevant sections

Index
Fair marketing, factual and unbiased
information and fair contractual practices
Protecting consumers

Ehealth and safety

Sustainable consumption

Top Commitment

Consumer issues

Consumer service, support, and complaint anddispute resolution

Together with our Business Partners
Quality Management

Consumer data protection and privacy
Access to essential services

Our Stance on
CSR

Education and awarenessCommunity involvement

Stakeholder
Engagement
Community involvementand development

Governance

Education and culture

Top Commitment

Employment creation and skills development

Our Stance on CSR

Technology development and access

CSR Mid-Term Plan

Wealth and income creation

Stakeholder Engagement

HealthSocial Contribution Activities

Social investment

Social Initiatives

Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting186

Glossary
Index

Modern slavery
Deﬁned as a person who is working in conditions that he or she is unable to refuse or
Top Commitment

escape from, such as human traﬃcking, forced labor, debt bondage, forced or servile
marriage, forced sexual exploitation, and child exploitation.

Our Stance on
CSR

Due diligence
Identify the negative social, environmental, and economic impacts of an organization's
decisions and activities, and avoid or mitigate those impacts.

Stakeholder
Engagement

QCDDMSQCDDMS stands for Quality, Cost, Delivery, Development, Management, Sales. It refers
to the criteria for the evaluation of these factors.

Governance

VOC
Volatile Organic Compounds.
Social Initiatives

QC circle
Environmental
Initiatives

Key CSR
Indicators andResults

About Our
Reporting

QC stands for Quality Control. Quality Control Circles are small groups of employees that
undertake activities aimed at improving quality at manufacturing sites.

CK speciﬁc
Monozukuri
Monozukuri refers to the creation of value in all respects, through manufacturing ﬁne
products and providing excellent services in a timely manner to meet customersʼ
expectations.

QSES
Quality System Evaluation Standard. Calsonic Kansei's proprietary standard for quality
system evaluation.

GEC
GEC: A Conference, chaired by the CEO, which reports, debates, and makes decisions onimportant matters concerning global management.

187

IndexThird-party Opinion
Co-Founder, Think Tank SophiaBank

Kumi Fujisawa
After having worked for Japanese and foreign investment fund
Top Commitment

management companies, Kumi Fujisawa founded the first investment
trust evaluation company in Japan. She later sold that company to a
global credit-rating firm, and helped establish the think-tank,
SophiaBank. She has interviewed over 1,000 business owners and,through partnerships with the Davos Conference, is engaged in

Our Stance on
CSR

Stakeholder
Engagement

creating mutually beneficial bonds between the public and private
sectors in Japan and overseas.

Serious about realizing a sustainable societyFirstly, above all, I would like to pay my respects to the Calsonic Kansei Group for its commitment
to releasing a sustainability report despite having delisted its shares from the stock exchange.
Further, the decision to also produce a printed summary version for distribution to its employees

Governanceand the words of the CEO, Mr. Moriya, in his message, ‘The key to achieving this goal will be just
how far each and every employee can act with a “CSR mindset,”’ indicated to me just how serious
the Group is about realizing its vision of contributing to the realization of a sustainable society.

Social Initiatives

Respect for individual employees as the ones charged withcarrying out the sustainability vision
That seriousness of intent was not only evident in the CEO’s words. I could detect sustainabilitybased approaches in every aspect of the company’s business activities as described in the report.

Environmental
Initiatives

For example, I learned about the detailed initiatives being implemented, such as the environmental
awareness at production sites in Japan and around the world, and the CSR procurement and CSR
guidelines for its supply chain.

Key CSR
Indicators andResults

What impressed me the most was the value that management places in every single one of theGroup’s employees, that is, the people charged with carrying out the Group’s vision forsustainability, which was very evident in the report. The initiatives directed at human rights andlabor practices were, of course, very impressive, but I thought that the “MY CSR” comments of
employees from the various countries at the bottom of the page in the second half of the report

About Our
Reporting

was a wonderful innovation that really conveyed the fact that each individual employee is
responsible for the company’s sustainability initiatives.

188

Stakeholders’ Voices
Index

If I were to make a suggestion for future reports, the inclusion of more comments fromstakeholders, such as the suppliers that together form the Group’s supply chain, would give added
depth to the detailed reports of the Group’s CSR initiatives. Also, as an unlisted company, mentionof relationships with investment funds and the reflection of the opinions of the funds’ shareholders

Top Commitment

would give shareholders further peace of mind in holding expectations for the future of thecompany.
Further, if I may make a very minor quibble, overall, the report has an abundance of diagrams and

Our Stance on
CSR

a very soft color scheme, but I did feel that much of the content assumed an understanding of thecompany’s business on the part of the reader. A little more ingenuity in the sub-headings andexplanations would help people with little knowledge of Calsonic Kansei to read the report withinterest and give them a better understanding, which may serve to increase readership of the

Stakeholder
Engagement

report. In that respect, it may be a good idea to involve new employees or people from the local
community in the production of the report. The online version does an excellent job of describing
the certain initiatives that the company is taking towards sustainability, which the Group perceives
as a major pillar of its business. A little more ingenuity in the presentation would help to attracteven more people both in Japan and overseas to read it. I hope that the employees of the Calsonic

Governance

Kansei Group will continue to engage in their day-to-day work with confidence and a sense of pride
that they are contributing to society.

Social Initiatives

Response to Third-party Opinion
Environmental
Initiatives

Executive Vice President and CFO,
Calsonic Kansei Corporation

Seiichi Kakizawa
Key CSR
Indicators andResults

I would like to thank Ms. Fujisawa for her valuable observations about our Group’s CSR activities
and report.

About Our
Reporting

The Calsonic Kansei Group positioned Fiscal 2015 as our First Year of CSR, and has engaged in
CSR activities with the mission of contributing to society through our business. We have recently
undergone a major change in shareholders, but we have made the decision to expand these
activities even further and are currently working on concrete plans.
Regarding Ms. Fujisawa’s comment about our stakeholders’ voices, we will pursue dialogue withmore of our stakeholders and deepen our engagement with them. Also, we have been working
since last fiscal year to communicate the information in this report a way that is easier for people
reading it for the first time to understand, but we will work on improving this aspect of the reporteven further.
In our aim to become a corporate group that will develop sustainably alongside society, ourexecutive team and each and every one of employees will face our CSR activities seriously andstrengthen our engagement even further.

189

Key CSR Issues and KPIs

Calsonic Kansei Group KPIs (Key Performance Indicators)
In Fiscal 2015, the Calsonic Kansei Group identified a number of global social issues and evaluated them according to their impact on the company, impact on stakeholders, frequency of occurrence, and degree of risk avoidance response. Based on this, we determined our key issues in line withthe core subjects of ISO26000. Setting KPIs for each of these key issues, we are using the PDCA cycle to pursue initiatives to achieve our targets.
CKJ=CKJ

O=Overseas ☆=Non-Group

J=Japan

ISO 26000
Core Subjects

Priority

Key Issues

Details of initiatives

KPI

Significant conpliance issue occurrence
Strengthen compliance / expand education andawareness-raising

Organizational
GovernanceA

Organizational
Governance

Strengthen information security and expand
education and awareness-raising

FY2016 Target

None

FY2016 Actual

Evaluation

FY2017 Target

FY2018 Target

1

× Target
FailedNone

None

Responsible dept.

Boundary

CKJ/J/O
Compliance Group

Percentage of Code of Conduct edcation
undertaken and pledges collected

100%

100%

○ Target
Met

100%

100%

Ratio of education undertaken

100%

100%

○ Target
Met

100%

100%

CKJ/J/OCKJ/J/O
Corporate IT Group

Conduct external audit of information security

A

Respect for humanrightsHuman Rights

B

Conflict minerals

Decent work

A
Workplace healthand safety

B

A○ TargetMet

Conduct once

Conduct once―

Conducted in FY2016―

Disclosed in FY2016

Undergo CSR audit by external organization―

Conduct in FY2016

Conducted○ TargetMet

Establish basic human rights policy―

Disclose in FY2016

Conducted○ TargetMet

CKJ/J/O

CSR/PR & IR GroupCKJ/J/OCKJ/J/O☆
CSR/PR & IR Group

Conduct human rights education and awarenessraising (as part of CSR training activities)

Training to scope of education target groups(leave target groups up to each company)

Expand in Japan

Conducted○ TargetMet

Trial in Japan andoverseas

Conducted at all locationsin Japan and overseas

Establish policy

Revision and extension of supplier CSR guidelines

Conduct in FY2016

Plan to disclose to CKJ suppliers within the year

○ TargetMet

Review as
appropriate

Review as appropriate

250 companies

284 companies (99%)○ TargetMet

250 companies

250 companies

―NA

100%

200%

Continue supply chain surveys

Number and ratio of companies surveyed

Conduct supply chain audits and expand
education and awareness-raising

Staff education participation rate

100%

Preparations underway to incorporate into purchasing division
education from FY2017

Establish labor policies (declare compliance tointernational labor standards)(declare in human rights policy)

Disclose in FY2016

Disclosed○ TargetMet―

Prevent workplace accidents

Number of lost-time injury accidents

None

2

× Target
FailedNone

CKJ/J/OCKJ/J/O☆
Purchasing Strategy
and Planning GroupCKJ/J/O☆

CKJ/J/O☆

CSR/PR & IR GroupNone

CKJ/J/OCKJ/J/O
General Support
Group

―

―

Not done―NA―

Disclose in FY2018

CKJ/J/O――

Not done―NA

Disclose in FY2017―

CKJ/J/O

Promote diversity

Ratio of employment of people with disabilities

2.00%

2.07%

○ Target
Met

2.00%

2.2%

CKJ

Encourage active participation by women

Ratio of female managers

―

2.30%

―NA

Work-life balance

Encourage employees to take paid annual leave

Percentage of annual leave taken

80%

77%

× Target
Failed

80%

85%

CKJ

Fair personnel
evaluation

Review evaluation systems――

Under consideration―NA

Under consideration

Under consideration

CKJ/J/O

Review educational structure――

Under consideration―NA

Under consideration

Under consideration

CKJ/J

Conduct CSR education

Training to scope of education target groups(leave target groups up to each company)

Expand in Japan

Conducted CK + Group companies in Japan○ TargetMet

Trial in Japan andoverseas

Conducted at all locationsin Japan and overseas

Ratio of return to work from maternity leave andchildcare leave

Introduce return-to-work
program in FY2016

Hold regular interviews with employees currently on child-raisingleave○ TargetMet

Review as
appropriate

Review as appropriate

Expansion of program for taking nursing care
leave

Review program

Became possible to take leave in instalments○ TargetMet

Review as
appropriate

Expand program―

Introduce return-to-work
program in FY2016

Not done× Target
FailedReview as
appropriate

Review as appropriate

Number of products

10 products in FY2011FY2016

POST GX4T10 under discussion with goal of January○ TargetMet

Consider plan withgoal of FY2025

18.5% mid-term
reduction (compared to2005)
2.5% year-on-year
reduction

32.3% mid-term reduction (compared to 2005)
3.8% year-on-year reduction○ TargetMet

13.6% mid-term
reduction (compared to2005)
2.5% year-on-year
reduction

26.7% mid-term reduction (compared to 2005)
1.2% year-on-year increase○ TargetMetChild-raising andnursing care
supportEnhance leave and leave-of-absence systems(salary, duration, shorter working hours, etc.)

Enhance childcare and nursing care support
systems
Environment

Conduct test of network intrusion and e-mail targeted attacks fromoutsideEstablish basic diversity philosophy and mediumterm action vision

Human resources
development

C

Conduct once

Establish policies for approaches to AIDS,
malaria, and tuberculosis

Diversity

Labor Practices―

Actions on Climate
ChangeDevelop eco-friendly products

Reduce production sector CO2 emissions

Double FY2015 levels by
FY2020

Human Resources
Group

CSR/PR & IR GroupCKJCKJ/J/OCKJ
Human Resources
Group

CKJ

CKJ

―

Technology PlanningGroup

CKJ/J☆

2.5% year-on-year
reduction

2.5% year-on-year
reduction

Environment &Energy Management
Group

J

2.5% year-on-year
reduction

2.5% year-on-year
reduction

Reduction of emission intensity

190

O

ISO 26000
Core Subjects

Priority

Key Issues

Actions on Climate
ChangeDetails of initiatives

KPI

FY2016 Target

FY2016 Actual

Evaluation

FY2017 Target

FY2018 Target

Reduce logistics sector CO2 emissions

Reduction of transport tonne-kilometers22.0% mid-term
reduction (compared to2010)
1.0% year-on-year
reduction

35.1% mid-term reduction (compared to 2005)
0.3% year-on-year reduction○ TargetMet

1.0% year-on-year
reduction

1.0% year-on-year
reduction

J

Reduce office sector CO2 emissions

Reduction of emission intensity

6.0% mid-term
reduction (compared to2010)
1.0% year-on-year
reduction

8.0% mid-term reduction (compared to 2010)
3.7% year-on-year reduction○ TargetMet

1.0% year-on-year
reduction

1.0% year-on-year
reduction

J

―

―

―NA

Conduct in FY2017

Conduct based on
reduction plan

CKJ/J/O

―

―

―NA

―

Plan to implement in
FY2018

CKJ/J

18.1% mid-term
reduction (compared to2005)
2.0% year-on-year
reduction

26.1% mid-term reduction (compared to 2005)
1.1% year-on-year increase○ TargetMet

2.0% year-on-year
reduction

2.0% year-on-year
reduction

J

6.0% mid-term
reduction (compared to2010)
1.0% year-on-year
reduction

18.8% mid-term reduction (compared to 2010)
2.3% year-on-year reduction○ TargetMet

1.0% year-on-year
reduction

1.0% year-on-year
reduction

Establish CO2 emission reduction targets for next
medium-term business plan
Introduce external audits―

A
Reduce waste

Biodiversity

Landfill ratio

Maintain zero landfill

Landfill ratio 0%○ TargetMet

Maintain zero landfill

Maintain zero landfill

O

Collaborate with environmental NPOs/NGOs

―

―

―

―NA

Conduct in FY2017

Continue

CKJ/J/O☆

―

Disclose status ofmanagement in FY2016――NA

Continue

Continue

CKJ/J

Reduce use of VOCs

Reduction of consumption

30.0% mid-term
reduction (compared to2000)
2.0% year-on-year
reduction

83.9% mid-term reduction (compared to 2000)
6.4% year-on-year increase○ TargetMet

2.0% year-on-year
reduction

2.0% year-on-year
reduction

JGP、JYP、
JKP、 JOP、CKK、CKF

Develop and implement staged action plan

Expansion of target categories

Prepare to disclose

Disclose 13 categories○ TargetMet

Disclose in FY2017―

CKJ/J☆

21.4% mid-term
reduction (compared to2009)
2.0% year-on-year
reduction

19.7% mid-term reduction (compared to 2009)13.6% year-on-year reduction○ TargetMet

2.0% year-on-year
reduction

2.0% year-on-year
reduction

CKJ/J

4% mid-term reduction(compared to 2014）
2.0% year-on-year
reduction

2.6% mid-term reduction (compared to 2014)
7.6% year-on-year increase○ TargetMet

2.0% year-on-year
reduction

2.0% year-on-year
reductionO

Horizontal roll-out of green purchasing ofequipment100%

Not done× Target
Failed100%

100%

Percentage of agreements obtained from new
accounts

100%

100％ conducted○ Target
Met

100%

100%

Environmental
pollution

B
Water

C

Fair Operating
Practices

Green purchasing

Reduce water use

Reduction of usage intensity

CKJ/J/O☆
Purchasing Strategy
and Planning GroupStrengthen green purchasing

CKJ/J/O☆

Prevention ofcorruption andbribery

Conduct education and awareness raising on
bribery

Percentage of corporate officers and employees of
relevant departments receiving education

40%

Conducted in Japan, the Americas, and Europe○ Target
Met

100%

100%

Compliance GroupCKJ/J/O

Appropriate tax
administration

Action on OECD transfer pricing guidelines, etc.

―

Prepare to disclose

Initiative started. Prepared to disclose from FY2017 (disclose toauthorities only, excluding US and MY; no general disclosure)―NA

Implement in FY2017
with some exceptions

Implement from previous
year with some
exceptions

Consolidated GroupCKJ/J/O

Supply chain
management

Conduct supply chain due diligence

Number of companies that have undergone due
diligence

9 companies

9 companies○ TargetMet

220 companies

At least 250 major
suppliers

Purchasing Strategy
and Planning GroupCKJ/J/O☆

A

Quality
improvement

Cultivate and increase in-house QSES auditors

Number of auditors

170

170

○ TargetMet

At least 200

At least 270

Quality Audit &Improvement SupportGroup

CKJ/J/OB

Customer issues

Incorporate customer feedback

In-house customer satisfaction survey score

3.38

3.36

× Target
FailedAt least 3.38

At least 3.38

Sales Strategy
Planning GroupCKJ/J/O/☆

Invest in social contributions

Activity spending

Maintain at least
FY2015 level

Donations made to Kumamoto Earthquake relief funds, sponsoredsports events and cultural events○ TargetMet

Maintain at least
FY2015 level

Maintain at least FY2015
level

General Support
Group

CKJ/J

Introduce and operate volunteering programs

Introduction of revised system

―

―

―NA

Finalize

Conduct

Human Resources
Group

CKJ

Select NPOs and NGOs and collaborate

―

―

―

―NA

Finalize

Conduct

Environment &Energy Management
Group
CSR/PR & IR GroupCKJ/J☆

A

Consumer Issues

Community
Involvement andDevelopment

O

Environment &Energy Management
Group

Zero landfill activities

Conduct soil tests/disclose results/establish
clean-up plan

Scope 3

Boundary

Reduction of waste generation intensity

Effective use ofresources

Environment

Responsible dept.

A

Social contribution

191