Society

Society

   Key performance indicators (KPIs)    FY22 Targets    FY22 Results Appraisal

Implement new human rights concepts and anti-harassment education

  • Incorporate education on new human rights concepts into training for different levels of employees
  • Conduct anti-harassment education

Achieved

Basic Concept

In addition to complying with the laws and regulations of each country and region, Tosoh Corporation endorses the UN Universal Declaration of Human Rights, the ILO’s Declaration on Fundamental Principles and Rights at Work, the OECD Guidelines for Multinational Enterprises, and the UN Guiding Principles on Business and Human Rights. We have also signed the UN Global Compact, enacted in April 2019, in support of its 10 principles across four areas.

The Tosoh Group Code of Conduct mandates respect for fundamental human rights. It ensures that all of our employees and management-level personnel are aware of the need to respect the diversity of individuals and refrain from all forms of discrimination, human rights violations such as child labor and forced labor, human trafficking and slavery, harassment, and protection of personal information and privacy.

Formulating the Tosoh Group Human Rights Policy

With the objective of fulfilling its responsibility to respect human rights, Tosoh has begun to formulate a human rights policy in accordance with the UN Guiding Principles on Business and Human Rights. The company has formulated its human rights policy by consulting experts in identifying risks related to business activities, and is designed to reinforce the system related to respect for human rights.

Human Rights Initiatives
Prevention of Forced and Child Labor

Forced labor and child labor are clearly prohibited under the Tosoh Group Code of Conduct. To prevent forced labor, Tosoh Corporation enters into employment contracts with employees and hires them only after the working conditions have been agreed upon by both parties. Moreover, to prevent child labor, the company confirms that potential employees are 18 years of age or older by requiring official documents verifying their age at the time of hiring.

Prevention of Discrimination and Harassment Prevention

Tosoh’s hiring practices in its recruitment activities are fair and nondiscriminatory. During the hiring selection process—including interviews—we ensure that questions or confirmation of birth, nationality, race, ethnicity, creed, religion, sexual orientation, gender identity, interests, or other matters unrelated to the applicant's aptitude or abilities are neither posed nor factor into the decision for employment. Moreover, the company’s employee work regulations clearly state that strict disciplinary action will be taken against harassing behavior when harassment negatively impacts the working environment of other employees.

If harassment is confirmed, a Harassment Countermeasure Committee comprising members from both Tosoh Corporation and the Tosoh Workers' Union reviews and investigates the facts surrounding the case, while ensuring that confidentiality is maintained.

Respect for Freedom of Association and the Right to Collective Bargaining

Tosoh Corporation considers the freedom of association and the right to collective bargaining to be fundamental human rights that as a company it must respect. The Tosoh Workers' Union is recognized as the counterparty to collective bargaining, which shall be conducted with mutual respect between the company and the union, and a good-faith effort shall be made by both sides to achieve a conclusion. Tosoh Corporation employs a union shop system. As such, all employees are members of the Tosoh Workers' Union, excluding certain employees in executive positions and those involved in management-related work.

Management of Working Hours

In compliance with Japan’s Labor Standards Act and collective labor agreements concluded between labor and management, Tosoh Corporation stipulates working hours, rest periods, overtime, days off, and vacations in its employee work regulations to ensure proper working hour management. The company has introduced a flextime system, under which employees receive an early-arrival overtime allowance in the event their actual working hours exceed the prescribed working hours (7 hours and 35 minutes). Moreover, an additional morning shift allowance is paid per half-hour for those who begin work during the morning shift (5:00 am to 7:30 am at factories and 8:00 am in urban areas). And the company has a compensatory holiday system for those who work on holidays and scheduled days off.

Tosoh employs a working hour management system to ascertain discrepancies between the actual computer log-on/log-off times and employees' work logs, with the aim of ensuring proper management of individual working hours.

The company grants employees a maximum of 20 days of annual paid leave. Employees are free to take these days in half-day increments, and the company is actively working to create an environment in which it is easier for employees to use them.

After confirmation of the actual results of working hours and annual leave by labor and management, Tosoh promotes the control of long working hours, prevention of health issues resulting from overwork, and improvement of the rate of annual leave utilization.

Wage Management

The Tosoh Group complies with the minimum wage and other relevant laws and regulations of each country and region in determining compensation. Tosoh Corporation stipulates appropriate wages, commuting and other benefits, bonuses, and retirement allowances in its employee work regulations based on the collective labor agreement. The salary structure is determined by job performance, and the same structure is applied to all employees. Employees receive electronic notification regarding wages, bonuses, and other payroll details so they can be confirmed at any time.

Protection of Personal Information

Tosoh Corporation has established personal information handling regulations in accordance with Japan's Act on the Protection of Personal Information. It has also created a system necessary for the handling and protection of personal information in the company to ensure its proper management and protection. Moreover, the company has established a global personal data protection system compliant with the EU General Data Protection Regulation (GDPR) and manages personal data appropriately.

Protecting the Rights of Clinical Investigators in the Bioscience Division

As part of a company that manufactures and sells medical devices and in vitro diagnostics while also providing various related services, the Bioscience Division has formulated an ethics committee. By reviewing the validity of the content of clinical research, the committee is responsible for ensuring that the research is properly and smoothly conducted in accordance with Japan’s Ethical Guidelines for Medical and Health Research Involving Human Subjects, respecting human dignity and rights.

To ensure the rights of clinical trial subjects are protected, Tosoh obtains appropriate informed consent and complies with regulations that stipulate the protection of personal information. The company provides education to relevant departments and works to broaden their knowledge of what is required to engage in clinical research activities.

Internal Audits

Tosoh Corporation's Audit Office specializes in internal audits. It audits and evaluates the promotion system and operational status of human rights initiatives. This encompasses the prevention of forced and child labor, discrimination, harassment, management of working hours and wages, and more at Tosoh and its group companies in Japan and overseas to improve and strengthen them. The audit results show no significant risks of human rights violations at present. The results of the audits are reported to the president and auditors as appropriate.

Human Rights Consideration Across the Supply Chain

In its CSR Procurement Guidelines, the company clearly indicates its respect for human rights, including prohibition of forced labor, inhumane treatment, child labor and discrimination, appropriate wage and working hour management, respect for employees' right to collective bargaining, handling of conflict minerals, and assurance of occupational safety and health, and asks its suppliers to cooperate in these efforts.

The status of suppliers’ human rights initiatives is ascertained through the CSR self-assessment questionnaire (SAQ), and the results are then fed back to each company. The SAQ results showed there were no suppliers that currently present a significant risk for human rights violations. If risks are discovered in the future, Tosoh will submit improvements requests to the relevant suppliers. 

Compliance and Harassment Consultation Desk

In accordance with the amendment of the Whistleblower Protection Act, Tosoh Corporation integrated the Harassment Consultation Desk into the Compliance Consultation Desk in June 2022 to unify consultation services for all compliance matters, including human rights and harassment issues. Moreover, a Harassment Consultation Desk has been established independently of the Compliance and Harassment Consultation Desk, and a consultant assigned.

Harassment consultations can be of varying degrees and forms, as can the feelings of the individual and, moreover, the circumstances in which the person is placed. The role of the harassment consultant is to listen carefully before accessing formal consultation services that initiate investigations, to hear the person's thoughts and feelings, and to help reduce the psychological burden on the complainant.

Education on Human Rights and Harassment

Tosoh Corporation conducts human rights education as part of new employee training as well as training appropriate for each level of employees. The company is deepening its understanding of the concept of global human rights, international standards, the responsibility and significance of corporate commitment, and global human rights issues. This includes familiarization with the Tosoh Group Code of Conduct, within which respect for human rights is stipulated.

Furthermore, the company strives to promote understanding of respect for human rights in business activities at the CSR Advancement Liaison Meeting, which brings together CSR managers to educate Group companies in Japan. It also provides education on various types of workplace harassment, including sexual, power, pregnancy-related, maternity, and childcare leave, through training for new employees, executives, and all job levels.

Tosoh Corporation promotes the creation of a work environment in which provides accurate knowledge about harassment is provided, and harassing behavior is prevented before it can occur.

Training    Target   Training time (hours)     No. participants
New employee training New employee 1.5 113
Mid-career training Equuivalent to 7 years of employment 1 52
Executive training Newly appointed executives 1.5 104
Group CSR Advancement Liaison Meeting CSR Representatives in Japan  0.5 67 people from 35 companies

* Includes those seconded to Group companies


Communication with Stakeholders
   Key performance indicators (KPIs)    FY22 Targets    FY22 Results Appraisal

Promoting understanding through active dialogue with shareholders and investors and disclosing information in a prompt, proper manner

  • Improve IR activities through dialogue with institutional investors and analysts
  • Strengthen IR activities for individual investors
  • Upgrade content of disclosure information
  • Upgrade shareholder relations (SR) activities
  • Diversify exercising of voting rights (e.g., by smartphone)

Achieved

Coexistence with local communities

  • Conduct factory tours for local residents
  • Participate in community events
  • Support community through sports
Achieved

Basic Concept

The Tosoh Group considers its major stakeholders to be shareholders, investors, customers, local communities, local governments, business partners, and employees. The company actively promotes CSR initiatives through its business activities on their behalf.

Relationships with Stakeholders

Underpinned by its corporate philosophy and CSR Basic Policy, Tosoh Corporation provides value to its stakeholders through ESG initiatives, along with its products and services. We understand the importance of constant communication with our stakeholders in earning and keeping the trust of society and ensuring corporate growth.

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Dialogue with Stakeholders

Through our website, corporate reports, and other means, we provide information regarding our business activities to our stakeholders in a prompt and proper manner. By creating various opportunities for dialogue, we receive evaluations and opinions from our stakeholders, which are then reflected in our business activities.

Stakeholder Tosoh's Role Communication Tools Communication Opportunties
Shareholders and
investors
Disclosing business results, business
policies, management strategy, and other information at the right
time and as appropriate
Financial results, financial presentations General meeting of shareholders
Building relationships of trust with shareholders and investors Securities reports Financial results presentation
Ensuring appropriate return on investment Business reports Business briefings
  Corporate governance reports Teleconferences
Questionnairs from ESG evaluation agencies Small meetings
Questionnaires for individual shareholders Individual interviews
Tosoh Report Briefings for individual investors
Plant tours
Customers Providing safe, secure, convenient, and high-quality products and services Product pamphlets Business activities
Building relationships of trust with customers Safety data sheets (SDS) Quality assurance support
Improving customer satisfaction by linking customer feedback to
product development
Help desk Exhibitions
    Audits
Call centers
Customer laboratories
Local communities Ensuring safe and secure operations Pamphlets about the Nanyo and Yokkaichi Complexes and the laboratories Plant tours
Contributing to community development Exchange through community events
Building and maintaining relationships of trust with local communities Community dialogues and opportunities to exchange ideas
Municipalities Complying with laws   Filings
Disclosing information appropriately and in a  timely fashion Meetings
Suppliers Ensuring fair trade CSR procurement guidelines Purchasing activities
CSR self-assessment questionnaires (SAQ)
Employees Providing a pleasant and meaningful place to work Internal newsletters Labor-management council
Improving systems and education to maximize the abilities of employees Intranet Safety and Health Committee
Ensuring stable lives for employees and their families Consultation and reporting hotlines Training
    Business reports (interviews with supervisors)
Dialogues with management
Workplace roundtable

Dialogue with Shareholders and Investors

To promote the understanding of the Tosoh Group on the part of shareholders and investors, the company is committed to proactive communication through appropriate information disclosure and increased opportunities for dialogue.

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Individual Meetings with Institutional Investors and Securities Analysts (Tosoh non-consolidated)

   FY2020    FY2021    FY2022
 No. of meetings 199 197 211

General Meeting of Shareholders

The General Meeting of Shareholders is held in Shunan City, Yamaguchi Prefecture, where our head office is located. In fiscal 2022, in the interest of mitigating the spread of COVID-19, the company scaled down the size of the meeting and live streamed it for shareholders who could not attend. Over the three-year period from fiscal 2020 to fiscal 2022, an average of 170 people attended. Notice of the meeting is sent out three weeks prior to the date and disclosed on the company's website one week in advance of the meeting.

For the convenience of shareholders, we have introduced Smart Convocation, which enables the viewing of convocation notices and business reports via smartphone, and Smart Exercise, which makes it possible to exercise voting rights via smartphone. Moreover, the company has adopted an online voting platform operated by ICJ Inc. to provide domestic and foreign institutional investors with the opportunity to exercise their voting rights electronically.

General Meeting
General meeting of shareholders

 Management Overview Briefing

When Tosoh Corporation announces its quarterly financial results, it does so in the form of a briefing session or teleconference for institutional investors and analysts. The president and the head of each group attend the briefings to promote understanding of the business situation through direct dialogue with all related parties. The company makes audio data and presentation materials from the briefing available on its website for viewing by the public.

In fiscal 2022, due to the pandemic, Tosoh Corporation held a briefing in conjunction with a live webcast, where the president and the head of each group explained their business forecasts, capital investment, R&D, and responses to climate change.

Plant Tours for Individual Shareholders

In response to requests from shareholders, the company conducted plant tours for individual shareholders in fiscal 2020 to deepen their understanding of Tosoh. The company did not conduct tours in fiscal 2021 and 2022 in the interest of mitigating the spread of COVID-19.

In fiscal 2022, Tosoh Corporation conducted its first-ever survey of individual shareholders. The survey produced responses from shareholders that showed they support the company, and that they place importance on support for local communities. Tosoh will continue to actively communicate with its shareholders on an ongoing basis, aiming to earn and maintain their trust.

Dialogue with Customers
Communication through Business Activities

Tosoh Corporation constantly considers ways in which it can solve problems by understanding customers' improvement requests and needs. The company has a system in place to respond promptly to questions and requests. During visits, a representative from the Corporate R&D department accompanies clients in order to provide products, services, and technologies tailored to their needs. The company’s sales, R&D, and manufacturing departments work together to improve customer satisfaction.

In Japan, Tosoh Corporation has offices in Tokyo (headquarters), Osaka, Nagoya, Fukuoka, Sendai, and Yamaguchi, and also conducts community-based sales activities. Tosoh has strategically situated its product warehouses near its customers' bases to speed up delivery.

Corporate R&D Initiatives

The customer laboratory, established at the Yokkaichi Complex in 2019, leverages its clean environment and state-of-the-art equipment to develop applications for polyethylene for pharmaceutical containers and urethane foam for automotive interiors. The company works with customers to mold prototypes for practical testing, and contributes to rapid product development by finding optimal formulations and molding conditions.

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Customer laboratory

Bioscience Division Initiatives

The Bioscience Division handles everything from product development to manufacturing, sales, and product maintenance within the Tosoh Group. Moreover, it has established a customer support center and operates a call center where customers can freely inquire about Tosoh products. It also holds study sessions to ensure proper use of its products—since fiscal 2021, it has held such sessions in virtual format. In addition, Tosoh offers proposals for optimal analytical conditions for various samples and support for precision control of diagnostic systems, thereby establishing a system that allows customers to use its products with confidence.

Organic Chemicals Division Initiatives

Parts used in the electronics and automotive fields are subject to contamination from machining oil and other substances during the manufacturing process. Therefore, a cleaning process using industrial cleaning agents is required before shipping as a product. The Organic Chemicals Division has established a Cleaning Technology Office in the Tokyo Research Center. While taking all possible measures to mitigate the spread of COVID-19, it conducts safe and efficient cleaning tests using machine-level equipment in the presence of customers who are considering the cleaning process, proposes cleaning systems that satisfy their needs, and provides follow-up services.

Cleaning
Organic Chemicals Division cleaning test

Tosoh Bioscience GmbH Initiatives

Tosoh Bioscience GmbH has established the Tosoh Bioscience EMEA & AMER Sustainability Preparation Initiative. In Europe, the EU's Corporate Sustainability Reporting Directive (CSRD) is expected to oblige major companies to regularly disclose information on sustainability. The company also believes it is important to provide Group sustainability information to customers and earn their trust. This initiative aims to serve as an information hub on social and legal developments in the sustainability field, and information is currently being gathered on social and legal requirements and customer demands in the EMEA (Europe, Middle East, Africa) & AMER (North America) regions.

Dialogue with Suppliers

Tosoh Corporation positions supply chain management as one of its core CSR issues, and as such has established a basic procurement policy and shared CSR procurement guidelines. It also conducts regular visits to suppliers to communicate with them. Tosoh will continue to form relationships of trust with its suppliers through fair and equitable procurement activities, and promote CSR-conscious procurement activities across the breadth of its supply chain.


Social Contribution Activities

Tosoh Corporation contributes to the development of local communities through its business activities with the aim of coexisting and prospering with society. To this end, we are actively creating opportunities for dialogue with communities in each region—both in Japan and overseas—in an effort to form solid relationships of trust.

Coexistence with Communities
Communication with Communities Near Complexes

Each of Tosoh's complexes regularly holds meetings to exchange opinions with the local government and residents regarding environmental preservation, security and disaster prevention, and safety measures. In addition to introducing our business activities and initiatives, we also ask attendees what they feel and want from Tosoh on a daily basis, which will aid us in improving our activities. Although the pandemic forced either the cancellation of events or the distribution of information in written form, Tosoh will continue to deepen exchanges through dialogue with local residents and aim to be a safe, reliable, and trustworthy company. In fiscal 2022, the company received 870 visitors at its complexes and laboratories.

Number of Visitors to Complexes

   FY2020    FY2021    FY2022
Visitors 3,412 548 870

Participation in Regional Events

To demonstrate to residents in our communities the openness of the Tosoh Group, we ensure opportunities for our employees to directly interact with residents to strengthen relationships of trust. The company actively takes part in events in each region, conducting dialogue and exchanges to deepen mutual understanding. Although the pandemic forced the cancellation of events, Tosoh will continue its activities so that both the community and Tosoh Group can achieve continuous development.

Cooperation with Communities

The Nanyo Complex makes donations to local social welfare facilities and the Red Feather Community Chest. Such activity is conducted annually to help the operation of the facility and the social welfare of the community. The company supports other initiatives such as the saving of children's lives with plastic bottle caps. The proceeds from the sale of these caps are used by local governments to pay for polio vaccines and other vaccines for children in developing countries. In fiscal 2023, the cumulative total has reached approximately 4,000 kg, enough to provide polio vaccines to about 2,000 people. Tosoh will continue to support bottle cap collection activities. Furthermore, the company donated the cost of the "Summer Children's Theater," which was cancelled due to the pandemic, to Shunan City as a fund to support child rearing. This support is used to pay for the installation of large monitors in facilities within the Shunan City Tokuyama Zoo for the social and emotional development education of children.

At the Yokkaichi Complex, the "Saturday Association" comprising executives from the Yokkaichi area donated 500,000 yen to Yokkaichi City for the purpose of helping to fight COVID-19. The mayor of Yokkaichi presented a letter of thanks and appreciation at a ceremony to commemorate the donation. One of the other activities of the labor union was to support single-parent families by collecting unneeded stationery, toys, and household items for use in their daily lives.

Community Volunteer Cleanup

We clean up the areas around each complex and research institute, as well as event sites after local fireworks displays and other events. As part of the training program for new employees, Yokkaichi Complex employees cleaned up Tarusaka Park near the complex and engaged in Satoyama preservation activities at the Nature House. Tosoh not only conducts cleanup activities, but also clarifies the purpose and significance of these activities and works to raise employee awareness.

The Nanyo Complex holds the annual Clean Up My NANYO event to encourage local residents to use sidewalks and parks. In fiscal 2022, once the company secured naming rights, this event was primarily held at Tosoh Park Eigenzan. Around 320 people participated in the cleanup, which was divided into four sections in the park while taking all possible COVID-19 countermeasures.

Acquired Naming Rights for Tosoh Park Eigenzan in Nanyo

Tosoh has signed a contract to acquire naming rights for Eigenzan Park in Shunan City, Yamaguchi Prefecture, for a period of five years. Since April 2021, it has been known as Tosoh Park Eigenzan. Opened in 1985, the park is located within walking distance from the Nanyo Complex and is a popular place for citizens to relax and enjoy the many events held year round. The park is regularly associated with the Tosoh Group through participation in park events and cleanup activities. The company hopes that its support for the park through naming rights will further contribute to the community and make people feel closer to the Tosoh Group.

Fostering the Next Generation
Field Trips

Tosoh conducts a variety of activities with the aim of encouraging children to enjoy chemistry and acquire an interest in the chemical industry. The company accepts local elementary and junior high school students on field trips, providing opportunities for them to learn about the relationship between the Tosoh Group and the community, as well as to become familiar with and enjoy the craftsmanship in the production of goods.

Visiting Lectures

Tosoh visits local elementary and junior high schools to give on-site lectures. Presentations include an overview of the complex and its projects in cooperation with the community, giving the participants a better understanding of Tosoh. At Sumiyoshi Junior High School near the Nanyo Complex, Tosoh gave a lecture on the relationship between Tosoh and the SDGs and the meaning of work, using the practical experience of Tosoh employees. Tomita Junior High School also held an online Q&A session. Among the many questions from participants were regarding what Tosoh takes pride in, what kind of work its people do and how it is useful. The Yokkaichi Complex hosted the Yokkaichi Children's Science Seminar, organized by the Yokkaichi Board of Education, for the first time in two years, and was in charge of the industrial complex tour and the experiment and experience zone. Moreover, for the first time, the company offered online classes to elementary schools in Yokkaichi City, teaching the children to make bath salts. Through these experiences, Tosoh succeeded in bringing chemistry closer to the students.

TRY! Activities

At the Nanyo Complex, various activities such as chemistry experiments are conducted by members of Tosoh Responsible Care Youth (TRY!), a voluntary RC activity group comprising young people, to encourage local children to become interested in chemistry. In fiscal 2022, the company held classes for elementary school students, during which they made bath salts and launched PET bottles. After the program, Tosoh received thank-you letters from the students, which made the company realize that the students had enjoyed learning about chemistry. Tosoh will continue to make efforts to further contribute to the local community.

Fiscal 2022 Activity Results

Exhibit    Date implemented    No. of participants    Activity theme Details of activity
Visiting lecture at Tomita Higashi Elementary (visiting lecture for 4th graders)    10/21    9    

Overview of Tosoh, chemistry experiment using baking soda and citric acid

  • Brief explanation about Tosoh
  • Making bath salts by mixing baking soda and citric acid
  • PET bottle launching experiment using carbon dioxide generated by the neutralization reaction between baking soda and citric acid
Nanyo Technical High School, Shin Nanyo High School joing cleanup activities    12/13   5  Tosoh Park Eigenzan: Picking up leaves and using them to make mulch   
  • Collected leaves are composted in a box in the park and then and used as mulch
  • Participation by Nanyo Complex Environment Protection section and TRY!

LET’S Activities

At the Yokkaichi Plant, members of LET'S (Local Education with Tosoh’s), a voluntary activity group comprising young people with the aim of contributing to the community, conduct various activities such as chemistry experiments to encourage local children to acquire an interest in chemistry. Although the pandemic prevented events from being held in fiscal 2022, the company is making various plans in the hope that it will be able to have more contact with the local community once the outbreak has subsided .

Athletic Competition

The Nanyo Complex holds baseball and soccer tournaments to promote the sound development of children together with the community through sports. The Tosoh Cup Soccer Tournament was held for the first time in two years.

Tosoh Scholarship Society

The society was established in 1959 out of the desire of the president of then-Toyo Soda Kogyo to contribute to the prosperity of a healthy society in general by nurturing the superior human resources that make up society. Currently, as a public service foundation, the society is offering scholarship loans with the purpose of providing scholarship assistance to children who have demonstrated academic excellence, good conduct, and physical fitness, but who have difficulty attending school for financial reasons. The aim is to foster human resources who will be useful to society. Over the past 60 years, the society has assisted a total of around 2,000 students.

Global Activities

United States

Tosoh Bioscience LLC aims to coexist and prosper with the community through donations and support activities. In 2021, it worked with the Salvation Army to deliver Christmas gifts to help two needy families in the community. The company has conducted this activity for 12 consecutive years and will continue to do so. Other volunteer activities included gift packing and delivery.

contribution_img_3_1.jpg
Tosoh Bioscience in the Giving Spirit

Germany

Tosoh Bioscience GmbH has pledged to donate a certain amount of money to a forestry project as a reward for each response to a questionnaire sent to 5,500 of its customers to see what they had to say about its products and services. A donation made by Tosoh Bioscience GmbH to the Wohllebens Waldakademie Primeval Forest Project allows it to rent one square meter of forest for a period of 50 years. Through this project, Tosoh Bioscience GmbH supports the regeneration of nature.

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Support for forest projects


External Recognition

ESG Investment Index

Tosoh is included in the following ESG investment indexes as of September 30, 2022.

FTSE4Good Index Series

Developed and provided by FTSE Russell, a subsidiary of the London Stock Exchange Group, this equity index of the world's leading companies evaluates the performance of companies that are demonstrating strong Environmental, Social and Governance (ESG) practices.

FTSE Blossom Japan Index

Developed and provided by FTSE Russell , this equity index evaluates the performance of Japanese companies that are demonstrating strong ESG practices. The index has been selected as an ESG index by the Government Pension Investment Fund (GPIF).

FTSE Blossom Japan Sector Relative Index

Launched by FTSE Russell, this is an index that reflects the performance of Japanese companies that excel in ESG practices. The index has been selected as an ESG index by the Government Pension Investment Fund (GPIF).

MSCI ESG Leaders Indexes

Formed by MSCI Inc., a U.S. financial services company, based on ESG research, the index is composed of companies from around the world that excel in terms of ESG-rated performance.

*Tosoh's inclusion in the MSCI Indexes and use of any MSCI logo, trademark, service mark or index name does not constitute sponsorship, advertising, or promotion of Tosoh by MSCI or its affiliates. Logos are trademarks or service marks of MSCI or its affiliates.

MSCI Japan ESG Select Leaders Index

Formed by MSCI, a U.S. financial services company, based on ESG research, the index is composed of listed Japanese stocks that excel in terms of ESG-rated performance in their respective industries. The index has been selected as an ESG index by the Government Pension Investment Fund (GPIF).

*Tosoh's inclusion in the MSCI Indexes and use of the MSCI logo, trademark, service mark or index name does not constitute sponsorship, advertising, or promotion of Tosoh by MSCI or its affiliates. MSCI and the MSCI index names and logos, which are the exclusive property of MSCI, are trademarks or service marks of MSCI or its affiliates.

S&P/JPX Carbon Efficient Index

The index was jointly developed by S&P Dow Jones Indices, Inc. of the U.S. and Japan Exchange Group, Inc. and is based on the weighting of companies on the TOPIX in accordance with their environmental information disclosure status and carbon efficiency (carbon emissions per unit of revenue). The index has been selected as a global environmental equity index by the Government Pension Investment Fund (GPIF).

Sompo Sustainability Index

The Sompo Sustainability Indexes, managed by Sompo Asset Management Co., Ltd., are used for sustainable management for pension funds and institutional investors, investing in a wide range of companies with superior ESG-rated performance.

External Recognition

CDP2021 "B" in Climate Change and Water Security

Tosoh earned a score of "B" in both climate change and water security in the 2022 survey conducted by the Carbon Disclosure Project (CDP). CDP is an organization that queries companies around the world regarding their environmental strategies, greenhouse gas emissions, water withdrawal and wastewater management, and forest resource management, and analyzes and evaluates their responses.

Achieved EcoVadis Silver Medal Sustainability Rating

Tosoh earned a Silver Medal rating in the 2022 sustainability assessment by EcoVadis, an international evaluation organization, for the second consecutive year. EcoVadis is an information sharing platform built by EcoVadis of France for the purpose of promoting supply chain sustainability. The organization comprehensively assesses CSR activities from four perspectives outside the financial domain: Environment, Labor and Human Rights, Ethics, and Sustainable Procurement. Silver is awarded to the top 25% of about 90,000 eligible companies worldwide.

Tosoh Named Outstanding Corporation Under 2022 Certified Health and Productivity Management Organization Recognition Program

In March 2022, Tosoh was certified as a "Corporation of Excellent Health Management 2022" for the third consecutive year. This is a system under which the Ministry of Economy, Trade and Industry (METI) recognizes enterprises that are undertaking superior health management. To support the physical and mental health of our employees, the company has developed various initiatives based on the three pillars of physical fitness, lifestyle improvement, and mental health. The results of these initiatives have received praise.

Platinum Kurumin Certification

Tosoh received Platinum Kurumin Certification. Based on Japan’s Act on Advancement of Measures to Support Raising Next-Generation Children, Kurumin certification is granted by the Minister of Health, Labor and Welfare to companies that have formulated an action plan to improve the employment environment so that employees can balance work and child rearing, and that meet certain standards by achieving the goals set forth in the plan as companies that support child rearing. Among Kurumin-certified companies, those that have made progress in introducing and using support systems for balancing work and family life, and have implemented higher-level initiatives, are eligible to receive Platinum Kurumin certification as an excellent company supporting child rearing.

Received EPIC Distinguished Supplier Award from Intel Corporation

Tosoh Quartz, Inc. and Tosoh SMD, Inc. have both earned Intel's 2022 EPIC Distinguished Supplier Award. This award is presented to suppliers that achieve a consistent level of performance that exceeds Intel's expectations through their commitment to excellence, partnership, inclusiveness, and continuous quality improvement.

Awarded Type II Zero-Accident Record Certificate

The Nanyo Complex was awarded a Type II Zero-Accident Record Certificate by the Labor Standards Bureau of the Ministry of Health, Labor and Welfare. The Type II Zero-Accident Record Certificate was awarded to all employees of the Nanyo Complex for reaching 8.1 million consecutive hours without accident in accordance with the Ministry of Health, Labor and Welfare's internal regulations for awarding the certificates (number of people x hours worked between November 2019 and November 2021). It is a great honor to receive this award, which the Nanyo Complex has earned for the first time, and it is a tangible result of past safety activities.

Participation in Initiatives

United Nations Global Compact

Since 2019, Tosoh has been participating in the United Nations Global Compact (UNGC), in which each company and organization voluntarily works to create a global framework for sustainable growth. Companies and organizations that are signatories to the UNGC are required to continue their efforts to realize the ten principles related to the protection of human rights, the elimination of unfair labor practices, environmental responsibility, and the prevention of corruption, based on the commitment of the top management. Also, in September 2020, Tosoh voiced agreement with the purpose of A Statement from Business Leaders for Renewed Global Cooperation, and became a signatory. Tosoh also participates in various subcommittees organized by Global Compact Network Japan to promote initiatives from a global perspective.

TCFD (Task Force on Climate-Related Financial Disclosures)

The TCFD was established by the Financial Stability Board to provide a framework for information disclosure useful for companies to understand climate-related corporate risks and opportunities. In June 2017, the TCFD published recommendations related to items of information disclosure. Tosoh announced its support for the TCFD recommendations in November 2019. Going forward, the Tosoh Group will disclose information on the Group's initiatives in line with the recommendations.

GX League

The GX League was established by Japan’s Ministry of Economy, Trade and Industry (METI) as a forum for companies that are actively working to transform the overall economic and social system (GX: green transformation)—including stakeholders other than themselves—to engage in unified discussion and practice for the creation of new markets with the aim of achieving carbon neutrality.

Challenge Zero Declaration

Challenge Zero (Challenge Net Zero Carbon Innovation) is an initiative to promote innovation toward the realization of a decarbonized society, the intent of the Paris Accord. Tosoh has endorsed the Challenge Zero declaration of the Japan Business Federation (Keidanren) and publishes the details of its initiatives.

Japan Clean Ocean Material Alliance (CLOMA)

The CLOMA platform was established to promote the sustainable use of plastic products and the development and introduction of alternatives to resolve the global issue of marine plastic litter, and to bolster collaboration and accelerate innovation among a wide range of stakeholders in a variety of industries.

Promoting Development of Workplaces Enabling Work and Nursing Care

Tosoh is working to create an environment where employees can balance work and nursing care and continue to work with peace of mind. As such, it is developing and expanding support systems for balancing work and nursing care. The company has obtained Tomonin certification from Japan’s Ministry of Health, Labor and Welfare to promote the development of a work environment that allows employees to balance work and family care.

White Logistics Promotion Activities

White Logistics is a movement that aims to improve truck transportation productivity, increase logistical efficiency, and create a favorable working environment for women and elderly drivers. These measures help ensure the sustainability and stability of logistics, which are essential for people's daily lives and industrial activities, while helping solve the shortage of truck drivers that has worsened in recent years. In September 2019, Tosoh issued a Voluntary Action Declaration to show its support for Japan’s White Logistics Movement.

Declaration of Partnership Building

The Declaration of Partnership Building is Tosoh's principal business policy regarding cooperation, coexistence and prosperity with suppliers in the supply chain and the establishment of new relationships. Tosoh has endorsed the intent of the Declaration of Partnership Building and announced this in March 2022.

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