Rating〇: Target met△: 60%-99% of target met
×: Less than 60% of target met

FY2020 Targets

Materiality
ThemesElements

Goals

Reduce greenhouse gas emissions
Reducing
Harmony with the global environment

Scope

FY2020 Results

RatingTarget unmet due to an increased ratio of fixed energy consumption ofequipment as a result of reduced production amid the COVID-19
pandemic and other factors (up about 11% year on year during the AprilDecember 2020 period)

×*・Maintain zero environmental claims against the Company (contamination of air, water, etc.)

・Almost on target with about 40% of low-concentration PCB waste
having been disposed of・No environmental claims filed〇

Recycle 75% or more of waste

91% of waste recycled〇

Final disposal rate of 30% or lower

15% final disposal rate〇

Devote 60% or more of development expenditures to reducing environmental burden

87% of development expenditures devoted to reducing environmentalburden〇

100% of patent applications filed in areas related to reducing
environmental burden〇

67% of relevant users met the reduction target, 23% did not meet thetarget with no change△

Reduce energy consumption per unit production(cut by 1% or more annually)

environmental impact

Tokai
Reduce pollution

Realizing a recyclingoriented society

TechnologicalInnovation

Supplying safe andsecured products
Supply chain
management

Recycle waste

・Dispose of all low-concentration PCB waste by March 31, 2025

Emphasize research and development
Make 60% or more of patent applications in areas related to reducing environmental burden
Further elevate quality

Reduce electrode consumption rate*(3% reduction from2019)

Raise supplier awareness of CSR

Make all key suppliers aware of Tokai Carbon Group procurement policies

Reduce CSR risks at suppliers

Conduct CSR surveys at key suppliers (first year)

Contributing to society through our businessConduct human rights training at all Tokai Carbon parent company locations （total hours）

CarbonTokaiCarbon

Tokai
CarbonTokai
CarbonTokai
CarbonTokai

Respect for humanrights

Raise employee awareness of human rights

Set human rights training time requirements for all Tokai Carbon Group companies in Japan

Carbon（total hours）

Group inJapanTokai

Establish global human rights policies and ensure all employees understand themCarbon
Group

Contribution tocommunity
Strengthening
Corporate Governance
Ensuring compliance

Strengthening our management base

Human resource

TokaiCarbonGroup

Provided human rights training to managers and candidates for
managerial positions at the parent company and affiliates in Japan[Hours of training provided] 182 hours at the parent company, 141 hours
at affiliates in Japan

〇
〇
〇

〇

Formulated the global human rights policy in July 2020 and informed allemployees (on a consolidated basis) about it〇

Total amount of donations and activity spending: Approx. 20,620,000 yen
Number of employees who participated: Approx. 420−

Target unmet due to remaining issues in establishing an infrastructure
for regular reporting and information sharing on a consolidated basis−

Maintain ethical standards, regulatory compliance

Commit no serious regulatory violations

TokaiNo serious regulatory violations〇

Conduct compliance education and training

Conduct compliance education and training for at least 80% of employees

Carbon90% of employees received compliance education/training〇

Ratio of female employees as of the end of December 2020 on a nonconsolidated basis: 8.5% (7.9% as of the end of December 2019)〇

Ratio of female new graduates hired in FY2021: 33.3%〇

New-hire training: 13,392 hours, specialist training: 1,672 hours (globalleader training, job rank-based training)〇

Frequency rate: 0.55〇

Target unmet with 90 lost work days (severity rate of 0.05), although
there was only one lost time incident

×

Increase employment of women

Make women a greater percentage of Tokai Carbon’s (parent company) workforce
TokaiMake women 30% of Tokai Carbon’s (parent company) new-graduate hires

Effectively implement training

Safety and Health

CarbonEstablish a consolidated governance systemdevelopment

Promoting Occupational

Tokai

Actively engage in community contribution activities

Selected key suppliers, familiarized them with our procurement policy,
and conducted a socially responsible procurement survey

Reduce frequency rate of occupational accidents (0.98 or lower)
Reduce occupational accidents

CarbonTotal training hours planned by head office (New-hire training / specialist training)

Reduce lost-time accidents to 13 days or less (severity rate of 0.007 or lower)

Tokai
Carbon*Since the period covered is from April of each year to March of the following year, the estimated achievement level is based on the status up to December.