ESG Voice 2018

Institutional investors are increasingly relying not only on financial data but also ESG-related matters and other non-financial data when making investment-related decisions. This is because their thought is that, with the possibility of social issues influencing a company’s business model or competitive edge, investment in companies making appropriate ESG-based efforts will lead to increased mid- to long-term operating revenue and reduced risk. In the automobile industry, specifically in the seating field that is TS TECH’s business domain, it is imperative to address social issues such as the environment and safety.

TS TECH is working to create a foundation for ESG management, which I anticipate will lead to an approach to business opportunities and risks that will improve corporate value.

Response

The TS TECH Group has long worked to create products through a focus on safety, the environment, and appeal. We aim to improve our corporate value by delivering products that will always be welcomed with joy by our customers and addressing social issues. In addition, we feel that in today’s automobile industry which is said to be in a period of transformation, offering not merely profitability but also new value that contributes to the creation of a sustainable society will lead to further business opportunities.

We are working to further grow corporate value through the incorporation of an ESG perspective into our medium-term management plan and policies that show awareness of ESG in all areas from management to manufacturing.

(Administration Department)

Studying abroad as a student introduced me to a wide range of values, which broadened my horizons and led to my interest in diversity. I want to promote diversity while also working to create environments where women can feel even more comfortable doing their work. This is why I have served as a member of TWC since my second year with the company.

Through TWC, I have had more opportunities to speak with people from other workplaces both in Japan and overseas. I have also been able to enjoy a wide range of experiences such as planning and devising policies and proposing them directly to management. In the future, I want to use my experience with TWC to proactively engage in work from a broader perspective in my normal tasks as well.

Also, as a member of TWC I am able to be directly involved with the company’s important policies, which gives me a real sense there are equal opportunities for everyone.

Comprised of members of different ages and departments, TWC is actively working on a variety of different policies, making the most of its members’ individual characteristics. We have been actively exchanging information with overseas locations since 2017 and aim to propose policies that will contribute to the promotion of diversity throughout the TS TECH Group.

Response

We feel that a diverse group of personnel is what will provide the drive to support the further growth of the TS TECH Group, so we have adopted diversity management as a priority measure under our 13th Medium-Term Management Plan. To have a diverse group of personnel actively participating will help accomplish the Group’s goals as well as promote future growth for individuals. We will continue to work with TWC to develop environments in which each individual employee has even more opportunities to put his or her respective skills to use.

(Human Resources Department)

At TS TECH, labor and management have worked together to successfully prevent any cuts to carried-over paid vacation since fiscal 1998. We also work to simultaneously promote appropriate approaches to work and to reduce overtime. Since we have made constant efforts to consult with the labor union beforehand when overtime looks to exceed designated limits and mutually determine its necessity, there is a keen awareness about overtime at the company.

In 2018, we adopted a flextime system to improve labor productivity. In order for employees to make the most effective use of work time, we decided not to establish any core time; one hour or more of work in a day is considered attendance for the day. Since adopting the system, we have held hearings with managers at each workplace to examine how it is being used, the amount of overtime, etc., and we are making ongoing efforts to ensure that employees will be able to utilize the system even more effectively. We aim to further improve labor productivity using the flextime system by once again publicizing how to use it and expanding the scope of eligible employees. We will continue to work to practice diversity management by constructing policies and systems that enable employees to work to their fullest.

We have been conducting “TS TECH Forest of Relaxation”^*1 activities together with TS TECH’s Suzuka Plant since 2012 as a part of its forest conservation efforts. This particular forest was once used as a “village forest,” but it became overgrown due to lack of maintenance.

In order to return it to its previous state, we have worked with volunteers from TS TECH each autumn to thin the forest, plant trees, and maintain walking trails. Local residents are delighted that what had been a dense overgrowth of trees now looks well-maintained and inviting. Small birds such as white-eyes and great tits visit the forest, and the mountain cherry trees we planted have grown big enough to blossom, so it looks like we will be able to follow through on the afforestation declaration^*2 we made at the beginning of our efforts.

Village forests are named so precisely because of the relationship they have with people. If they are untended, they will quickly become overgrown and unmanageable, so ongoing maintenance is necessary. Starting this year, we will expand our efforts to include matsutake mushroom hill reclamation projects and conduct new types of maintenance, so we look forward to being able to continue to work with TS TECH on forest conservation projects.

• TS TECH Forest of Relaxation: A private forest on the outskirts of Kuwana City
• Suzuka Plant’s afforestation declaration: We endeavor to work with local communities to help coexist with nature and to develop forests that pave the way for the future in order to protect the environment and restore biodiversity and natural habitats.

Response

This year will be our seventh working with NPO Morinokaze on these activities. Through our annual work maintaining this village forest in Kuwana City, it has been cleaned to the point that it is perfect for walks.

The “TS TECH Forest of Relaxation” activities we hold once a year receive positive feedback annually and enjoy participation from roughly 100 volunteers, including employees and their family members. We feel that these activities have contributed, even if just a little, to a concern for and interest in forest conservation. We hope to continue to maintain this village forest and raise awareness of forest conservation in partnership with it.

(Administration Department, Suzuka Plant)

We have had the pleasure of not only working with TS TECH for over half a century, but also moving forward together as its global supplier, first supplying it with PVC^* leather for motorcycle saddles and later expanding to plastic coverings for automobile seats, medical chairs, and interiors. Since last year, we have also had the opportunity to utilize the knowledge TS TECH has accumulated as an automobile seat maker to develop PVC leather with a new design that focuses on improving the marketability of car seats through added value such as a quality finish and a light weight.

I would like to take this opportunity to extend our gratitude for having the honor to receive awards in the cost division for two years in a row now. Given the demand for high quality in the automobile industry, we understand that, once selected, production methods and raw materials cannot be altered. With this in mind, we have worked to emulate the bold global development TS TECH has exhibited and steadily reduce costs through secure production volume and loss reduction.

We hope in the future to have additional opportunities to learn about TS TECH’s basic strategies so that we can continue to forge a path ahead as a global supplier for TS TECH.

• PVC: Polyvinyl chloride

Response

We have had the pleasure of doing business with Okamoto Industries, Inc. since the early days of our establishment and have benefited from their cooperation in a wide variety of ways, foremost among them the development and production of covering materials that are vital to the appearance of our products. Our seats for automobiles are made up of a wide range of components, and in conjunction with the increasingly sophisticated functions and types of performance demanded of them, the details regarding required components have also become increasingly complicated. To gain an edge in the market in this kind of environment and take our business to the next level, the cooperation of suppliers with strengths in a range of specialty fields is imperative.

Moving forward, we hope to further strengthen our partnership, working to increase the corporate value of both firms based on the foundation of trust we have built together over the years.

(Corporate Purchasing Division)