Society

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 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 addition, in today's rapidly changing business environment, it is necessary for employees to envision their own future in order to respond to such changes. We believe that self-reliance and an independent spirit in our employees will lead to the growth of the company as well. To develop human resources who can think and act independently, we have recently formulated a basic policy for human resource development and reviewed our education system.

Basic Policy for Human Resource Development

To develop self-reliant human resources who can envision what they want to be in response to changes in the business environment, and who have the motivation to learn and persevere to achieve their goals.

Rank-Based Training

The new education system, reviewed in fiscal 2020, is based on career education and aims to develop self-reliant human resources through continuous learning in the following four areas: basic education such as regulations and laws, acquisition of skills through self-development, learning through work experience and opportunities, and global human resource development.

All lectures and group activities for new employee training in fiscal 2021 were conducted online due to the COVID-19 pandemic, and in lieu of group training for all levels of employees, we had participants submit assignments while we distributed lecture materials.

Technical Education

By acquiring the basic knowledge and skills necessary to work safely in chemical plants and improving sensitivity to hazard prediction through hands-on training, our employees develop the ability to think and act on their own to ensure safe and stable operations.

In addition, to raise the level of technical skill, employees in general technology-related occupations belonging to the manufacturing and facility management divisions are required to attend educational courses and acquire qualifications necessary for promotion to their respective positions.

Support for Independent Learning

Tosoh has established a distance-learning course program to help employees acquire the basic knowledge, general education, and skills necessary for their work, and to support independent learning. Employees can take the courses regardless of their work duties, and those who complete the courses receive a subsidy equivalent to 50%–80% of the course fees.

The company pays for all courses taken during childcare leave. These courses are used for self-development during leave and as preparation before returning to work.

Number of employees taking correspondence courses

		FY19	FY20	FY21
Number of employees taking correspondence courses		240	185	260

*Includes employees seconded to Group companies.

Support for Qualifications and Skill Testing

The Tosoh Group supports employees taking examinations and courses to obtain certificates and licenses.

Employees who obtain qualifications and licenses designated by the company are informed through internal newsletters and are rewarded in five categories according to the level of difficulty.

Number of qualification incentives paid

		FY19	FY20	FY21
Number of subsidies		374	871	625

* Includes employees seconded to Group companies.

Global Human Resource Development

We are working to strengthen the development of human resources necessary for the globalization of our business. We offer in-house TOEIC^® examinations, online language training for self-development, and correspondence courses to support language learning in English, Chinese, and Korean.

We also offer a study-abroad program for employees to improve their language and business skills. However, due to the COVID-19 pandemic, the program has been temporarily suspended since fiscal 2020.

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Diversity

Basic Concept

We believe that we must welcome and utilize a diversity of people and cultural values to continue to improve and generate corporate value. As such, we are working to promote diversity.

We respect diversity of people in terms of age, gender, race, nationality, religion, sexual orientation, gender identity, disabilities, and individual interests in accordance with the Tosoh Group Code of Conduct.

Female Employees

Tosoh places high priority on recruiting and employing women. We have hired a total of 93 women over the past three years, bringing the percentage of female employees in our workforce to 9.9%.

In addition, in accordance with our action plan based on Japan’s Act on the Promotion of Women’s Participation and Advancement in the Workplace, we are promoting the retention and advancement of female employees by expanding the hiring ratio and job scope and nurturing the development of female executives.

Data related to female employees

		FY19	FY20	FY21
Number of female employees		322	336	363
Number of new graduate and mid-career female hires		26	34	33
Number of management-level female employees1		10	13	15
Proportion of management-level female employees1		1.0%	1.3%	1.5%

¹ Includes employees seconded to Group companies.

People with Disabilities

Tosoh believes that the employment of people with disabilities is essential in fulfilling its corporate social responsibility. Our workplaces employ people with auditory, visual, intellectual, and other physical and mental impairments, regardless of the degree of severity. When considering work assignments, we take into account each person’s condition and likelihood for outpatient hospital care, adjust the volume and type of work to suit the individual, and teach work procedures in an easy-to-understand manner.

Since fiscal 2018, as part of our efforts to employ people with disabilities, we have supported their transition to employment in the Shunan area, which has led to the employment of seven people by the end of March 2021. In addition, in fiscal 2020, we introduced a farm-based employment program for people with disabilities in the Tokyo area, and are working to create further employment opportunities. We also utilize Japanese employment and recruitment agencies to hire human resources for our needs and ensure that they play an active role in their respective workplaces.

Tosoh will continue to promote the hiring of people with disabilities while taking into consideration their suitability for the job.

Reemployment of Mandatory Retirees

An essential element of corporate sustainability is the effective succession of skills, knowledge, and experience accumulated over the years. Tosoh reemploys mandatory retirees to ensure that their skills, knowledge, and experience are passed on to younger generations of employees.

At the same time, we strive to encourage mandatory retirees to seek reemployment by offering restart leave and retirement gift money. This measure serves to promote the continued employment of personnel aged 60 and above.^{2, 3}

² Employees will continue to receive 7 days of special leave within 1 month of the start of reemployment.
³ Payment is based on the number of years of service after reemployment.

Foreign Employees

As part of our overseas expansion measures, we are actively hiring foreign nationals.

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Respect for Human Rights

Basic Concept

The Tosoh Group adheres to the policy of unequivocal respect for human rights. We support the aims of the UN Universal Declaration of Human Rights, the ILO’s Declaration on Fundamental Principles and Rights at Work, 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, and harassment.

Human Rights Education

Using a system established by Human Resources and CSR Advancement, the company actively promotes human rights education through training for new employees and rank-based training. In fiscal 2021, we conducted online training and distributed materials to deepen understanding of the global concept of human rights, international standards, the responsibility and significance of companies to address human rights, and human rights issues in the supply chain. Specific reference is made to issues such as harassment, child labor, forced labor, human rights violations on social media, environmental destruction, labor practices, and foreign technical training programs. In addition, in the training for new employees conducted at the Nanyo Complex, we invite external lecturers from the Human Rights Promotion Department of Shunan City to discuss respect for human rights in general as well as human rights in the workplace.

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, the Tosoh Group 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.

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.

Dialogue with stakeholders

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

Basic Concept

As a global company, Tosoh is engaged in various business endeavors around the world, in the course of which it procures a large number of materials. In our procurement activities, we follow a basic policy that ensures fairness and impartiality, compliance with laws and regulations, and environmental protection.

In recent years, companies are also expected to contribute to the sustainable development of society by resolving various global social issues related to the environment, human rights and labor, and corporate ethics. To meet these expectations, Tosoh's efforts alone are not sufficient; it is essential that the entire supply chain work together.

In addition to enhancing the relationship of trust with our business partners, we have compiled CSR Procurement Guidelines to solve social issues in the supply chain and achieve sustainable procurement. We share these guidelines with our suppliers.

Basic Procurement Policy

1. Ensuring fairness and impartiality

In selecting suppliers, we work to ensure fairness and impartiality. We welcome a wide range of domestic and overseas companies and make decisions based on the criteria of economic rationality, such as price, quality, and supply stability.

2. Complying with laws and regulations

We comply with relevant domestic and international laws and regulations and social norms related to purchasing transactions.

3. Managing information

We maintain confidentiality in important matters and information obtained in transactions with our business partners and manage such information appropriately.

4. Procuring for CSR

To fulfill our CSR, we strive to procure products from suppliers who are committed to compliance with laws and regulations pertaining to environmental protection and safety, human rights, and the work environment.

CSR Procurement Guidelines

1. Overall advancement of CSR

2. Fair trade and corporate ethics

3. Human rights and labor

4. Environmental protection

5. Quality and product safety

6. Social contribution

CSR Procurement Initiatives

Supplier Evaluation

We share our CSR Procurement Guidelines with our suppliers and ask them to understand our policies and activities related to CSR procurement and to comply with the guidelines.

A CSR self-assessment questionnaire (SAQ) was sent out in fiscal 2020 to 70 suppliers, 56 of whom replied, equivalent to 90% of the total amount of raw materials and fuel purchased by Purchasing & Logistics. Evaluation and analysis of the survey results were conducted in fiscal 2021. Of the responding companies, 71% were above the overall average; those that were below the average were requested to make further improvements. The results of the SAQ indicated there were no cases of human rights violations or environmental issues posing significant risk.

We will continue to strengthen cooperation with our suppliers and promote stable CSR procurement activities through dialogue.

Conflict Minerals Initiatives

We are committed to the responsible sourcing of mineral resources. Conflict minerals are those used to fund armed groups, particularly those complicit in human rights violations in conflict zones. These include tantalum, tin, gold, and tungsten from the Democratic Republic of the Congo and neighboring countries. If we find that any of the minerals we use are related to conflict, we immediately stop using them as a supply source.

White Logistics Promotion Movement Participation

In September 2019, Tosoh issued a Voluntary Action Declaration to show its support for Japan’s White Logistics Movement.

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.

Tosoh has identified 10 items to be addressed. These include the use of pallets, the consolidation of delivery dates and destinations, the improvement of facilities on the shipper's side, the shift to alternative modes of transportation, and the promotion of joint logistics.