Diversity and Inclusion

Diversity

Key performance indicators (KPIs)	FY22 Targets	FY22 Results	Appraisal
Percentage of women hired for regular full-time positions with potential for promotion	20% or more	15.0%	Not achieved
Number of women in executive positions	18 or more	17*	Not achieved
Employment rate of persons with disabilities	2.3% or more	2.2%	Not achieved
Reemployment rate of mandatory retirees	80% or more	83.7%	Achieved

* includes employees seconded to group companies

Basic Concept

Tosoh Corporation believes that we must welcome and utilize a diversity of people and cultural values to continue to improve and generate corporate value. As such, the company is working to promote diversity. Its view is that increasing diversity internally will lead to improvement in our ability to respond flexibly and robustly to changes in the external environment, and to innovate.

Employee Diversity in FY2022 (Tosoh Corporation: non-consolidated)

（Number of people）
		Aged 0～17		Aged 18～29		Aged 30～39		Aged 40～49		Aged 50～59		Aged 60 and above		Total
		Male	Female	Male	Female	Male	Female	Male	Female	Male	Female	Male	Female	Male	Female
Executive positions (Career track positions)		0		0		24		312		354		73		763
		0	0	0	0	23	1	305	7	351	3	73	0	752	11
Nonexecutive positions	Career track positions	0		445		430		15		10		2		902
		0	0	372	73	396	34	14	1	9	1	2	0	793	109
	General	0		863		351		294		457		128		2,093
		0	0	804	59	322	29	231	63	360	97	111	17	1,828	265
	Subtotal	0		1,308		781		309		467		130		2,995
		0	0	1,176	132	718	63	245	64	369	98	113	17	2,621	374
Total		0		1,308		805		621		821		203		3,758
		0	0	1,176	132	741	64	550	71	720	101	186	17	3,373	385

Promotion of Women in the Workplace

Tosoh Corporation is committed to recruiting and promoting the success and retention of female employees. The cultivation of medium- to long-term female candidates for executive positions is a challenge we must overcome in the advancement of women. To this end, the company is increasing the number of female employees by first establishing a recruitment target based on Japan’s Act on the Promotion of Women’s Participation and Advancement in the Workplace.

It is expanding the scope of activities of hired female employees by assigning them to manufacturing and sales departments—where they have traditionally not been assigned—while paying consideration to their aptitudes and desired job types. The company is also working to retain female employees by providing career education to assist them in taking stock of their careers and developing an image of their future. And it is developing a work-life balance support system to eliminate retirement due to life events and support them in the achievement of a favorable work-life balance.

Data Related to Female Employees in Career-Track Positions (Tosoh non-consolidated*)

Promotion of Senior Human Resources

Tosoh Corporation hires all mandatory retirees who wish to be rehired, and we are implementing two initiatives for the purpose of encouraging these rehired employees to play an active role.

First, the company firmly communicates that the expectations for rehired employees are to use the knowledge, experience, and skills they have gained throughout their careers to maintain and boost corporate vitality and to strive to improve the company's overall skills and techniques by providing guidance and training to younger employees. Second, rehired employees and their supervisors meet twice a year for work interviews to clarify goals and foster a cooperative environment.

Moreover, from fiscal 2023, the company has begun conducting training for people in their 50s to consider their future careers, helping them envision their own post-retirement activities and creating awareness and plans in preparation for that part of their lives.

Promoting Employment of Persons with Disabilities

Tosoh Corporation employs people with a variety of disabilities, including those of a physical, aural, visual, intellectual, or mental nature, regardless of the extent of the condition. It gives reasonable consideration to their workload. This includes taking into account their hospital visits and physical condition, and creating easy-to-understand work procedures, giving them every possible opportunity to be active in their respective workplaces.

In addition, in fiscal 2021, Tosoh Corporation introduced a special employment program for people with disabilities in the Tokyo area, and are working to create further employment opportunities. It also utilizes Japanese employment and recruitment agencies to hire human resources for its needs.

Tosoh Corporation considers the employment of people with disabilities to be a social responsibility of the company, and as such we will continue to promote the hiring of people with disabilities while taking into consideration their suitability for the job.

Foreign Employees

As stated in the Tosoh Group Code of Conduct, we pay due respect to human rights, the prohibition of discrimination, and diversity, and hire without distinction as to nationality, race, or ethnicity.

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Work-Life Balance

Key performance indicators (KPIs)	FY22 Targets	FY22 Results	Appraisal
Percentage of male employees taking childcare or paternity leave	95% or more	97.8%	Achieved
Percentage of male employees taking childcare leave	20% or more	40.4%	Achieved
Annual paid leave utilization rate (all employees)	80% or more	82.4%	Achieved
Annual paid leave utilization rate (for those who work during daytime)	70% or more	75.8%	Achieved

Basic Concept

Tosoh Corporation believes that a company's greatest asset is its people, and that in order to sustainably create value, it is important to foster an open work environment that is rewarding to work in and recognizes and values human rights and diversity. Under the tenet of the Tosoh Group CSR Basic Policy which states, "Develop and promote a free and open corporate culture," we are actively promoting the realization of work-life balance by creating a workplace environment that allows diverse human resources to balance work and family life and to continue working in a rewarding manner. We aim to realize an environment in which employees can continue to work with peace of mind by providing and encouraging the use of work styles and various systems that suit their individual lifestyles.

Structure and Responsible Person

Under the supervision of the director involved in human resources, the Human Resources Department at headquarters works closely with human resources at our complexes work together to promote and develop human resource and labor policies. We are proactive in information sharing and opinion exchange with human resources departments at group companies to promote efforts oriented toward improving the workplace environment and achieve a work-life balance across the breadth of the Tosoh Group.

Human Resources System

Tosoh Corporation's basic philosophy for its personnel system is rooted in these three pillars: a creative organization that allows employees to maximize their capabilities, a challenging culture employing a point-based system for thorough evaluation, and fair treatment where those who work hard are truly rewarded. We aim to establish a systemic foundation that rewards those who act with a sense of ownership. With the aim of promoting employee skill and human resources development, we organically link four individual systems: the job classification system, the training interview system, the personnel evaluation system, and the wage system.

Basic Philosophy of Human Resources System

• Creative organization that allows employees to maximize their capabilities
• Challenging culture employing a point-based system for thorough evaluation
• Fair treatment where those who work hard are truly rewarded

Employee Evaluation and Feedback

Tosoh Corporation organizes the job performance capabilities of its employees into job levels, job classifications, and career tracks. These help to clarify the requirements expected of each individual. This includes the role to be fulfilled and a vision of the future as an objective, and serves as a set of guidelines for skill development and training objectives. Employees set annual work goals, short- and long-term career plans, and the skills they wish to acquire as they consider their own careers. Through these training interviews, employees and their supervisors mutually confirm the degree of progress and achievement of work goals, their ability to perform their duties over the short and long term, their aptitude, and their diagnosis and declaration of career development, and encourage individual job development in addition to improving the employee's ability and motivation. Based on the results of the training interview, supervisors use the results to evaluate the employees in their biannual personnel evaluations.

In addition, the main objective of personnel evaluation is "human resource development," and effective skill development is achieved by providing feedback from supervisors on employees' strengths and weaknesses at training interviews, as well as guidance and advice regarding the execution of work objectives. Career tracks include full-time positions for employees who wish to develop their careers in a wide range of fields and general positions for employees who are skilled experts. Employees in general positions who have been assessed as having the ability to perform duties suitable for career-track positions are converted to these through course change.

Wages and Compensation

The salary structure is divided by job level, job classification, and job performance course, and the same structure is applied to all employees. Bonuses are determined through discussions between labor and management. The company has introduced a performance-based compensation system to increase transparency in the process of determining the amount to be paid and to boost employee satisfaction.

List of Starting Salaries for FY2022 (Tosoh non-consolidated)

	Monthly wage (yen)	Comparison with minimum wage* (%)
High school	187,047	117
Junior college	190,943	119
Technical college	209,021	131
University	229,056	143
Graduate school (master's program)	246,411	154

*Calculated based on Tokyo minimum wage (¥1,041 yen/hour), 20–25 days/month, 7 hours 35 minutes/day

Creating Comfortable Workplaces

Tosoh Corporation believes it is important to create an environment where a diverse workforce can continue to work for many years with peace of mind. To this end, we are 1) promoting work style reforms to streamline operations and achieve work-life balance, 2) enhancing systems for balancing work and family life in support of employees' diverse circumstances, even when individual circumstances differ, and 3) promoting health management to aid employees in their own health development.

Work Style Reform

We are promoting work style reforms with the aim of enhancing corporate competitiveness. Our efforts to curb long working hours and boost productivity have enhanced both employee job satisfaction and comfort while at the same time building a strong corporate culture.

Specifically, we are working on various measures to foster time awareness, enhance systems for creating a comfortable work environment, and promote operational efficiency throughout the company and in each workplace.

Key activities	Purpose	Overview
Morning-oriented work	Curb long working hours and foster a sense of time awareness	Prohibit working after 8:00 p.m. in principle, so as to rethink the way of working, shifting from night work to morning work
		Allowance for starting work during morning work hours (5:00 a.m. - 7:30 a.m. at factories, 8:00 a.m. in cities)
Flex-time system	Promote flexible work schedules	Eliminate core hours, enabling a better work-life balance
Systematize work time management	Appropriate working hour management	Systematize time and attendance management
		Check deviations from work applications by acquiring PC log information to promote proper attendance management
Reform web conferencing system	Leverage IT to improve operational efficiency	Promote further use of online conferencing by adding the necessary equipment for web conferencing to workplaces and meeting rooms at each business location
Workplace discussions on operational efficiency	Workplace-specific operational efficiency	Create opportunities for each workplace to discuss issues and solutions in the workplace, and implement and promote measures to improve operational efficiency
Remote work system	Increased labor productivity	Expand telecommuting system for remote work while maintaining internal communication (twice a week and up to six times a month)
	Promotion of flexible work system	No restrictions on reasons such as childcare or nursing care; available to employees who are eligible for the flex-time system and who have been approved by their department manager and the company

Curbing Long Working Hours

With the aim of curbing long working hours from the viewpoint of overwork prevention and health management, Tosoh Corporation in principle prohibits employees from working after 8:00 p.m. If there are situations in which working past this time is unavoidable, we will review the approach to work in consideration of early morning starts. This is intended to reduce after-hours work, which contributes to long working hours, improve productivity by fostering a sense of time awareness, and realize a better balance between work and life away from the job by encouraging employees to return home early.

Moreover, we are confirming discrepancies between the actual log-on/log-off times of computers and employees' work applications using the working hour management system. Employees with discrepancies in excess of 20 hours per month are required to submit written justification, which leads to reduced working hours and the optimization of work applications. All employees who work in excess of 80 hours of overtime per month are required to be interviewed by an occupational physician regardless of the nature of their request.

Through these interviews, we are attempting to prevent physical and mental health problems among employees.

	FY20	FY21	FY22
Overtime hours/month	17.1	16.2	16.4
Total actual working hours/year	1,897	1,910	1,888

*Data is for nonexecutive-level personnel.

Improved Operational Efficiency

Tosoh Corporation considers the improvement of operational efficiency to be a key initiative in creating a comfortable workplace. To this point, we have endeavored on a company-wide scale to improve productivity by reducing the use of paper and utilizing IT.

Paper elimination initiatives	IT utilization initiatives
Electronic pay statements Establishment of workflow for various application procedures Establishment of workflow for approval procedures Automatic faxing of order confirmations	Introduction of telecommuting system Expansion of time and attendance management system Introduction of electronic lab notebooks Introduction of cloud storage Introduction of hot desking and other systems

Each workplace also reviews its own operations and offers encouragement in the form of improvement proposals as a measure to incentivize employees to improve operational efficiency. By encouraging employee creativity and ingenuity, promoting active participation in work, and developing new skills and honing existing ones, we create comfortable workplaces and a resilient corporate structure, leading to the further development of the company.

In addition to the "Working Style Reform Award" and "Work and Office Work Improvement Award," which are aimed at improving operations that lead to work style reform, we have also established the "Group Award" and "Energy Saving Proposal Award" aimed at reducing CO₂ emissions to encourage improvement proposal activities. Tosoh's wholly-owned domestic group companies are also engaged in improvement proposals to further invigorate the Group overall.

	FY20	FY21	FY22
No. of proposals	11,159	11,485	10,581

Support System for Balancing Work and Home Life

In the interest of actively supporting diverse human resources in balancing work and family life, we aim to realize an environment in which employees can continue to work with peace of mind by providing and encouraging the use of work styles and various systems that suit their individual lifestyles.

Childbirth and Childcare Systems

At Tosoh Corporation , we believe that enjoying child-rearing leads to personal growth of our employees in all aspects of their lives, including work. To this end, it is also important to create an atmosphere in which the entire workplace—including supervisors—understands and is comfortable with systems related to childbirth and childcare.

We have developed and posted on the intranet a publication outlining the systems related to pregnancy, childbirth, and childcare for employees to review. The publication also includes a section specifically for supervisors, clearly stating what they should keep in mind and a checklist to encourage them to communicate appropriately on the subject. Moreover, if employees take and complete correspondence courses during their childcare leave as part of their self-development, the company fully subsidizes the cost.

We also believe that increasing the number of male employees taking childcare leave will positively impact the creation of comfortable workplaces. As a result of our establishment of a goal to increase the acquisition rate, we have seen it rise year by year, surpassing 40% for the first time in fiscal 2022. We believe that making the system known and encouraging its use will help create an environment in which those who are directly involved in child-rearing and those who aren’t, regardless of gender, can work enthusiastically while cherishing their respective lifestyles.

Childcare-Related Data (Tosoh non-consolidated¹)

Item	Male/Female	FY2020	FY2021	FY2022
Childcare leave recipients	Male	26	63	72
	Female	14	18	13
	Total	40	81	85
Childcare leave acquisition rate2 (%)	Male	14.9	35.2	40.4
	Female	100	100	100
Return rate3 (%)	Male	100	100	100
	Female	100	88.2	100
Retention rate of returnees4 (%)	Male	100	100	100
	Female	100	100	100
Male employees childcare/ paternity leave recipients		157	171	174
Male employees childcare/ paternity leave acquisition rate5 (%)		89.7	95.5	97.8
Employees taking advantage of reduced working hours to facilitate child care	Male	0	0	1
	Female	38	38	49
	Total	38	38	50

1. Includes employees seconded to Group companies.
2. Number of employees who took childcare leave/number of employees who welcomed a new child
3. Number of employees who returned to work/number of employees who were scheduled to return
4. Retention rate of employees 12 months after returning to work/number of employees who returned to work in the previous fiscal year
5. Number of employees who took childcare/childbirth leave/number of employees who welcomed new children

Support System for Balancing Work and Childbirth/Child Care (Tosoh non-consolidated)

Work-related systems	Leave taken before and after birth	Female employees within six weeks before childbirth (14 weeks for multiple births) and eight weeks after childbirth
	Maternity leave	Up to six days within eight weeks of childbirth (treated as paid, permissible one time)
	Childcare leave	Until the child is two years old (first five days treated as paid leave)
	Reduced working hours	Up to two hours per day during pregnancy and up to the end of the child's third year of elementary school
	Leave system to care for ill/injured child	Leave can be taken from five-minute increments when caring for a child (treated as paid leave) One child: Five days (40 hours) per year 10 days (80 hours) per year for two or more children
	Use of accumulated annual leave for childcare	Use of accumulated annual leave to care for a child up to the third year of elementary school
	Use of accumulated annual leave for fertility treatment	Accumulated annual leave usable for fertility treatment
Benefit programs	Gift to celebrate birth	Paid upon childbirth
	Assistance for hospitalization expenses	Subsidy for expenses when an employee or spouse is hospitalized for procedures such as Cesarean section
	Assistance with fees incurred in the case of a room not fully covered by insurance	Subsidies for out-of-pocket expenses when an employee or spouse is hospitalized for a Cesarean section or other reason in support of charges not covered by insurance
	Family allowance	Monthly allowance based on the number of dependents and children

Nursing Care-Related Systems

In recent years, the number of people who have had to leave their jobs to care for family members has been on the rise in Japan. At some point, everyone faces the possibility of nursing care. That is why it is essential to create an environment in which employees can continue to work with peace of mind, and to create a culture in which the entire workplace understands and cooperates with each other to prevent employees from leaving the workforce. Tosoh has published a nursing care guidebook to provide enhanced information for employees who care for family members while working and their colleagues in the workplace.

	FY20	FY21	FY22
Nursing care non-paid leave recipients	0	0	0
Nursing care paid leave recipients	19	14	15
Employees who work reduced hours due to nursing care	0	0	0

*Includes employees seconded to Group companies

Nursing Care-related Data (Tosoh non-consolidated*)

Work-related systems	Nursing care non-paid leave	Up to 1 year (may be taken in installments of up to 3 installments)
	Nursing care paid leave	Can be taken in five-minute increments when caring for a family member (treated as paid leave) When caring for one family member: Five days (40 hours) per year When there are two or more family members to care for: 10 days (80 hours) per year
	Reduced working hours	Up to two hours per day for a total of 1,096 days (three years)
	Use of accumulated annual leave to care for family members	When caring for a family member, accumulated annual leave is usable in half-day incredments when caring for family members (treated as paid leave)
Benefit programs	Separation allowance	A monthly stipend to help compensate those who live separately from their spouse to care for family members.
	Subsidy to cover the cost of care givers	Assistance provided when an employee or family member hires a housekeeper for care needs

Improvement of Annual Paid Leave Utilization Rate

Tosoh Corporation believes that taking annual paid leave helps employees refresh their minds and bodies through a more balanced work style, and that this in turn contributes to increased productivity. We have set a company-wide annual leave acquisition rate target of 80%. Our efforts to improve the rate enabled us to achieve the target in fiscal 2022. We are focusing particularly on creating a workplace environment in which annual leave is easy to take. In addition to educational activities through a host of training programs, we share the dates when annual leave is scheduled to be taken using a scheduler in each workplace, thereby visualizing the status of annual leave usage.

	Breakdown	FY20	FY21	FY22
Days acquired (per person)	Executives	11.9	12.2	13.1
	Nonexecutives	16.0	15.9	16.4
	Average	15.2	15.2	15.8
Utilization rate (%)	Executives	60.1	61.5	65.6
	Nonexecutives	84.3	83.5	86.3
	Average	79.2	79.2	82.4

*Data is collected from July of one year to June of the following year

Programs	Details
Refreshment support leave	Encourages employees to take at least five consecutive-day vacations each year
Active leave	At the age of 50, employees receive 10 consecutive days off and a travel voucher worth 300,000 yen.
Use of accumulated annual leave for volunteer activities	Employees can use accumulated annual leave to participate in volunteer activities including disaster recovery assistance and social welfare.
Reemployment system	Support for returning to work for employees who resigned due to marriage, spouse relocation, childcare, or nursing care.
Company housing and dormitories for single employees	Company housing and dormitories for single employees are provided at each complex.
Housing allowance	A monthly allowance for employees who own their own homes.
Workplace social gathering expenses	The company subsidizes expenses for workplace social gatherings and events.
Shareholding association	The association facilitates employees' acquisition of company stock and supports the building of assets.
Hospitalization expense assistance	Assistance with hospitalization expenses when an employee or spouse is hospitalized

*Data is collected from July of one year to June of the following year

Health Management

Tosoh Corporation recognizes that the physical and mental health of its employees is the foundation for realizing its corporate philosophy and the Tosoh Group CSR Basic Policy. We are therefore actively undertaking health promotion activities so that our employees can realize their full potential.

Health Declaration

Tosoh Corporation believes that the realization of our corporate philosophy is predicated upon the physical and mental health of our employees. As such, we actively work to maintain and improve their health and create comfortable work environments.

Health Promotion Activity Policy

1. Continuously strive to maintain and improve the physical and mental health of our employees

2. Focus on activities from the viewpoints of prevention and early detection.

3. Aim to create a cheerful and energized workplace where all employees of Tosoh and the Tosoh Group are healthy.

Promotional Structure

To implement the Health Declaration, Tosoh Corporation have established a Health Promotion Committee chaired by a director involved in Human Resources to work on maintaining and promoting the health of our employees. Human Resources is responsible for implementing health promotion activities at each complex. The Tosoh Workers' Union shares information on health issues between labor and management. The Tosoh Health Insurance Association is responsible for financial involvement in health activities, and the Health Service Center with industrial physicians, public health nurses, and nurses as specialists involved in health promotion activities work together to carry out various activities.

Health Promotion Activities

To support the physical and mental health of our employees, each complex plans and operates its own activities each year with unique ideas and approaches in addition to company-wide health promotion activities based on the three pillars of physical fitness, lifestyle improvement, and mental health.

Moreover, we have set company-wide numerical targets with fiscal 2025 as the year by which we would establish a system to implement the plan-do-act-check (PDCA) cycle for the purpose of further promoting health management. To achieve these targets, we will support good health through health promotion activities, and maintain and promote a comfortable work environment.

Items	Activities	Notes
Physical fitness	Company-wide walking event	Twice a year, for three months each, participatory events with the goal of walking 8,000 steps per day
	Walking events at complexes	Walking activities are conducted as recreational events at each complex to promote friendship.
	Physical fitness test	Six items including muscle strength, agility, and cardiopulmonary endurance are measured, and display the overall evaluation represented in terms of physical fitness age. Conducted every five years to provide an opportunity to review one's physical fitness.
Lifestyle improvement	Birth month health counselling	Employees can discuss lifestyle and mental health issues with industrial physicians, public health nurses, and registered nurses, while referring to data such as physical examination results.
	Smoking cessation activities	The company advocates smoking cessation and offers financial support to those who wish to quit smoking.
Mental health	Mental health education	Conducted workshops on basic knowledge of mental health for general employees Conducted training for executive personnel on workplace and individual mental health

Numerical Targets for Health Promotion Activities (Tosoh non-consolidated*)

		FY21 Actual	FY22 Actual	Targets
Body	BMI  ≧ 25	20.4	20.2	18.5 or less
	Smoking rate	18.3	17.5	14.5 or less
Heart	People under extreme stress	3.2	3.8	3.0 or less

Periodic Health Examinations

We have succeeded in ensuring physical examinations every year for 100% of our employees. In addition to general periodic checkups, we also provide lifestyle-related disease examinations, and colon, stomach, prostate cancer, and dental checkups are available for those who wish to receive them.

The percentage of employees who received periodic health examinations in fiscal 2022 was 44.2% overall, a year-on-year improvement of 1.3 percentage points. For those employees where examinations uncovered health issues, a report on the results of follow-up examinations is submitted to the industrial physician for use in the employee’s subsequent health management.

Moreover, we conduct specific medical examinations for employees aged 40 and over to preclude serious complications from lifestyle-related diseases—such as heart disease and stroke—caused by metabolic syndrome.

Stress Test Engagement Survey

Stress tests and engagement surveys are conducted once each year. Stress checks are used as mental health examinations, leading to the identification of issues in the workplace as well as early detection and response to problems by understanding the mental health condition of employees.

The examination rate in fiscal 2022 was 98.4%, and the percentage of people deemed to be under extreme stress was 3.8%. Although this represented an increase, partly attributable to prolonged behavioral restrictions under the pandemic, it was well below the average for companies using the same survey vendor. In addition to working to reduce stress by encouraging employees with high levels of stress and recommending the use of counseling, the results of workplace analysis are fed back to the heads of each department for organizational management purposes.

The engagement survey also confirms employees' work ethic, as we believe that satisfaction with the company and enthusiasm for work are important for employees to maximize their potential. The results of this survey will be used to develop HR policies and initiatives to improve productivity, with the aim of further improving engagement and revitalizing the organization.

Engagement Survey Results

Favorable factors	Challenging factors
Workplace relationships	Work-related feedack
Understanding of roles and responsibilities	Demonstrating strengths

Support Program for Employees Returning from Mental Health Leave

Tosoh Corporation has established a return-to-work support program for employees who have been absent from work due to mental health issues. We collaborate with occupational physicians and the Tosoh Labor Union during each step of the process, from the identification of the illness to after the employee returns to work, to help alleviate employee anxiety and facilitate a smooth return.

• Step 1: Identifying and responding to disorder
• Step 2: Submission of medical certificate (in case of inability to work)
• Step 3: Care during absence from work
• Step 4: Declaration of intent to return (determination of suitability for return by the attending physician)
• Step 5: Examination by occupational physician
• Step 6: Assistance in visualizing return to work
• Step 7: Decision on whether or not to reinstate the employee at a meeting of the Reinstatement Review Committee
• Step 8: Building structure for cooperation following return to work
• Step 9: Follow-up after return to work

Labor-Management Relations

Tosoh Corporation and the Tosoh Workers' Union have concluded a collective agreement in the spirit of Japan’s Labor Union Act and Labor Standards Act. The two sides are bound to respect the other’s position, deepen understanding and trust between them, and confirm their mutual cooperation to contribute to the development of the company's business and the improvement of conditions for employees. Tosoh acts as a union-organized shop, and all employees are members of the Tosoh Labor Union, excluding certain employees in executive positions and those involved in management-related work.

The Tosoh Labor Union represents its members in labor-management negotiations. Through committees and councils conducted based on specific themes, has built good, stable labor-management relations with a sense of trust for discussions that can be fraught with tension. The two sides will continue to communicate closely to respect each other's position and cooperate in the interest of contributing to the development of the company's business and the improvement of conditions for employees.

Composition of Tosoh Workers' Union

	FY20	FY21	FY22
No. of union members1	3,140	3,258	3,346
Union membership ratio (%)2	69.4	70.4	71.8
Full-time union official	8	9	9

¹ Number of employees (including those seconded to Group companies), excluding executives and certain employees involved in management-related work.

² Number of members/employees

Labor-Management Communication

The Tosoh Corporation's Central Management Council meets once a month to discuss the company's management situation, human resource systems, improvement of working conditions, and other issues with the aim of achieving a common understanding of the current situation and challenges. The discussions are disclosed in the form of minutes on the company intranet and are accessible to all employees. Tosoh Corporation provides advance notice to the Tosoh Labor Union and employees when implementing major changes in business operations that may significantly impact employees.

Key Content of the 2021 Central Management Council Meeting

• Explanation of management situation
• Recruitment plan
• Promoting the use of annual and childcare leave and related programs
• Safety and disaster prevention/occupational safety and health
• Measures to prevent excessive working hours
• Wage hikes and bonuses
• Revision of reemployment system
• Revision of leave system
• Reports, requests, etc. from labor union

Fiscal year	Item to be revised
2020	Revision of the welfare lease housing program
2021	Partial revision of regulations related to leave and family allowance payments Introduction of reemployment system Introduction of telecommuting system
2022	Partial revision of leave regulations Expansion of telecommuting system

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Human Resource Development

Key performance indicators (KPIs)	FY22 Targets	FY22 Results	Appraisal
Education and training at all levels, and allocation of the right people to the right positions	- Implementation of education and training gatherings - Implementation of education and training appropriate to each level		Achieved
Education and training to strengthen language skills	Conduct language study abroad and sending employees abroad for training		Not achieved
Maintain employment to realize growth strategy	Ensure adequate staffing to achieve the medium-term business plan		Achieved

Basic Concept

Based on our philosophy that "education is for developing the type of human resources envisioned by management and contribute to the self-realization of employees in the process," Tosoh Corporation has systematically established various educational and training programs to help employees fully develop their personal potential and qualities, cultivate the ability to think independently, and acquire knowledge and skills related to safe and stable operations.

In fiscal 2022, the company formulated a new basic policy for human resource development. Tosoh Corporation believes that the growth of the company is incumbent upon the autonomous growth of its employees, and as such aims to develop human resources who can think and act on their own.

Structure and Responsible Person

The Human Resources involvement officer is responsible for the development and implementation of the education system and basic policies. The Education and Training Council—consisting of the head of the Human Resources department and the leaders of specialized departments responsible for implementing highly specialized training—supervises, promotes, and evaluates training content throughout the company. Moreover, the PDCA cycle is implemented by reporting and discussing the content of education conducted at each complex and reflecting the results in future materials.

Each complex conducts an annual business office Education and Training Council meeting based on the education and training conference to oversee, promote, and evaluate the education and training of the complex. Each department manager and supervisor formulates and implements training plans for their own department, and monitors and checks the status of training, in order to improve personal qualities and utilize available knowledge and skills in his/her work.