Society

Respect for Human Rights

Basic concept

The Tosoh Group believes that respecting the human rights of those its business could impact is essential to realizing its corporate philosophy. We have formulated the Tosoh Group Human Rights Policy to serve as a foundation for our future efforts to demonstrate respect for human rights. We will inform all employees of our human rights policy, continue promoting human rights initiatives, and work with our business partners to resolve business and human rights-related issues throughout the value chain.

Tosoh Group Human Rights Policy
The Tosoh Group aims for sustainable development under our corporate philosophy of contributing to society through the chemistry of innovation. We believe respecting the human rights of those our business could impact is essential to realizing this philosophy. We established the following Tosoh Group Human Rights Policy based on the Guiding Principles on Business and Human Rights adopted by the United Nations Human Rights Council in June 2011.

1. Basic concept

Respect for human rights is fundamental to the Tosoh Group’s business, and we respect all internationally recognized human rights. We see as the most fundamental rights those put forward in the International Bill of Human Rights—comprising the Universal Declaration of Human Rights, the International Covenant on Civil and Political Rights, and the International Covenant on Economic, Social, and Cultural Rights—and the International Labor Organization’s (ILO) Core Conventions listed in the ILO Declaration on Fundamental Principles and Rights at Work, which defines basic rights at work. We also support and respect the OECD Guidelines for Multinational Enterprises and the ILO’s Declaration on Multinational Enterprises. Furthermore, as a signatory to the UN Global Compact, we support and respect its ten principles.

This Human Rights Policy joins the Tosoh Group corporate philosophy mentioned above, the Tosoh Group CSR Basic Policy, and the Tosoh Group Code of Conduct to form the basis for all the Group’s activities. We promote initiatives to respect human rights, and our internal rules and regulations are interpreted and applied in accordance with this policy. In implementing this policy, we utilize the knowledge of external human rights experts and consult in good faith with relevant stakeholders.

2. Scope

The Tosoh Group applies this policy to all Group officers and employees. When our business, products, or services directly bring about a negative impact on human rights through our business partners or other parties in the value chain, we expect these business partners and others to act in accordance with this policy and respect human rights, and we will continue to encourage them to do so.

3. Respecting human rights

The Tosoh Group respects the dignity, rights, and diversity of all people; prohibits all forms of discrimination, forced labor, child labor, and harassment; strives to ensure that we are not complicit in human rights abuses, even indirectly; and engages or participates in activities aimed at creating a society that fulfills the promise of human rights for all.

In the event we encounter a conflict between internationally recognized human rights and the domestic laws of a country, we will seek ways to maximize respect for internationally recognized human rights.

The Appendix lists the specific human rights issues the Tosoh Group should prioritize in its current business activities. The Tosoh Group reviews, in a timely and appropriate manner, the specific human rights issues it should prioritize, accounting for social conditions, business development, and any demands we face.

4. Human rights due diligence

Recognizing the importance of ongoing human rights due diligence in accordance with the UN Human Rights Council’s Guiding Principles on Business and Human Rights, the Tosoh Group identifies any negative human rights impacts of our business on or directly linked to our stakeholders, strives to prevent and mitigate such impacts, and continuously verifies the effectiveness of these efforts.

5. Corrections and remediation

When it is clear that the Tosoh Group’s corporate activities or business activities along its value chain have caused or contributed to negative impacts on human rights, or when we suspect that such impacts have occurred, we will work to remedy the situation through dialogue and appropriate procedures. When our business, products, or services directly bring about a negative impact on human rights through our business partners or other parties in the value chain, we will encourage these business partners to rectify the situation.
Additionally, we will develop remedy mechanisms in line with international standards and take appropriate measures to provide relief to those whose human rights have been negatively affected.

6. Education and training

To ensure this policy is integrated into and effectively implemented in our corporate activities, the Tosoh Group will provide appropriate education and training for directors, officers, and employees and ensure that business partners and other stakeholders understand the policy.

7. Information disclosure

To continuously monitor compliance with this policy and fulfill our accountability, we disclose our efforts to address each of the aforementioned items related to respect for human rights on our website and in our Integrated Report, and provide information that ensures that our stakeholders understand the Tosoh Group’s efforts.

8. Engagement and cooperation with stakeholders

To implement this policy, the Tosoh Group ensures opportunities for engagement and cooperates in good faith with relevant stakeholders, including labor unions, while utilizing the insight of external human rights experts.

Our Board of Directors has approved this policy.

Specific human rights issues that the Tosoh Group should address
Identifying and addressing negative human rights impacts in the raw materials supply chain

Specifically, we do not tolerate forced labor, child labor, or violations of the rights of indigenous peoples. We also work to avoid using conflict minerals that involve human rights abuses.

Strengthen efforts within the Tosoh Group based on internationally prohibited discrimination and harassment and the systems and procedures (including grievance mechanisms) required to protect against such discrimination and harassment

We do not tolerate discrimination of any kind, including on the basis of place of birth, gender, nationality, race, ethnicity, creed, age, sexual orientation, gender identity, disability, social origin, or having other diseases.

We do not tolerate harassment of any kind, including power harassment, sexual harassment, parental leave harassment, racial harassment, and harassment targeting disabilities.

Identifying and addressing negative impacts on the human rights of workers (including vulnerable foreign nationals) in construction work and transportation in Japan and abroad

Specifically, we do not tolerate forced or child labor and strive to maintain adequate occupational health and safety.

Identifying and preventing possible negative environmental impacts on local residents in the raw materials supply chain and in the production of Tosoh Group products

We respect the right to a safe, clean, healthy, and sustainable environment.

Continuously addressing risks of human rights violations, including actions related to product safety management and export controls related to national security

We ensure user safety, assuming they use our products appropriately. When exporting our products, we comply with the Foreign Exchange and Foreign Trade Act, US export control regulations, and other applicable national security-related export control laws and regulations.

Human rights policy formulation process

Understanding (education)

In formulating our human rights policy, we had an expert (Nishimura & Asahi Law Offices) provide business and human rights training.
Participants: 50; Class time: 2 hours
 (main content)

• Efforts required of companies involving respect for human rights
• Specific processes related to the respect for human rights required of companies
• Human rights policy significance and formulation process
• Identifying critical human rights issues
• Human rights due diligence process
• Tosoh’s past efforts to respect human rights, etc.

Discussion

Through conversations among external experts and Tosoh’s administrative and business divisions^*, we created a list of countries from which we obtain raw materials and identified and prioritized issues related to human rights in these countries.

*Business divisions that purchase considerable volumes of raw materials
Business divisions involved with production contractors
Business divisions with solid relationships with Group production companies

Policy creation

Management explanation

Deliberation and approval

Human Rights Initiatives

Prevention of forced and child labor

To prevent forced labor, Tosoh 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

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 factored into the decision for employment. Moreover, we decide on promotions, compensation, and training availability according to job performance, ensuring fair opportunities and treatment within the same job performance rank.

Employees receive training to prevent discrimination and harassment, and the company’s employee work regulations clearly state that strict disciplinary action will be taken against harassing behavior when it 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 Labor Union reviews and investigates the facts surrounding the case, while ensuring that confidentiality is maintained.

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 cities). And the company has a compensatory holiday system for those who work on holidays and scheduled days off.

Tosoh Corporation employs a working hour management system to ascertain discrepancies between the actual computer log-on/log-off times and employees' work applications, 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 Corporation promotes the control of long working hours, prevention of health issues resulting from overwork, and improvement of the rate of annual leave utilization.

Related page: Work-life balance / Creating comfortable workplaces

Wage management

Based on the belief that it is the Tosoh Group’s social responsibility to maintain employment and provide continuous, stable wages, it 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. We pay wages on a set date each month, with consideration for a living wage that meets the basic needs of all employees and their families to ensure their well-being. The salary structure is determined by job performance, and the same structure is applied to both men and women. Employees receive electronic notification regarding wages, bonuses, and other payroll details so they can be confirmed at any time.

Related page: Work-life balance / Wages and compensation

Protection of personal information

Tosoh Corporation has established personal information handling regulations in accordance with the 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's clinical trials

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 Biological Research Involving Human Subjects, respecting human dignity and rights.

To ensure the rights of clinical trial subjects are protected, Tosoh Corporation 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 Corporation 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

Tosoh believes it crucial to consider human rights throughout the supply chain to address the human rights issues that challenge society and achieve sustainable procurement. 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.

Related section: Strengthening CSR supply chain management

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 independent of the Compliance and Harassment Consultation Desk and assigned a consultant.

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.

Related page: Strengthening compliance / Compliance and Harassment Consultation Desk

Education on human rights and harassment

Tosoh 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, including forced and child labor and discrimination. 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 rank-based training for new employees and executives.

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

Human rights and harassment training in FY2023 (non-consolidated and Japan group companies)

Name	Elegibility	Training time (hours)	No. of attendees
New Employee Training	New employees	1.5	87 (Male: 61, Female: 26)
Mid-Career Training	Equivalent to seven years with the company	1	70 (Male: 65, Female: 5)
Executive Training	Newly promoted executives	1	59 (Male: 58, Female: 1)
Group CSR Promotion Team	Domestic Group CSR staff	0.5	67

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CSR Supply Chain Management

Basic concept

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

In recent years, expectations have grown for companies to contribute to the sustainable development of society by tackling 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 enough; it is essential that the entire supply chain works together.

In addition to enhancing relations of trust with our business partners, we have compiled CSR Procurement Guidelines to resolve 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 are open to 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. CSR procurement

To fulfill our corporate social responsibility, 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    1) CSR promotion 2. Fair trade and corporate ethics    1) Prohibit corruption, bribery, etc.    2) Prevent inappropriate provision and receipt of benefits    3) Prohibit abuse of a superior bargaining position    4) Select suppliers in a fair and equitable manner    5) Prohibit restrictive competition    6) Respect intellectual property rights    7) Exercise appropriate export controls    8) Disclose information    9) Prevent and swiftly detect fraud    10) Prohibit insider trading    11) Sever relations with antisocial forces    12) Maintain confidentiality

3. Human rights and labor    1) Prohibit forced labor    2) Prohibit inhumane treatment    3) Prohibit child labor    4) Prohibit discrimination    5) Pay appropriate wages    6) Ensure appropriate working hours    7) Ensure employees' right to organize    8) Implement conflict minerals initiatives    9) Ensure occupational safety and health 4. Environmental protection    1) Environment management system (EMS)    2) Minimize environmental impact    3) Obtain environmental permits and administrative approvals    4) Use resources and energy effectively    5) Conserve water resources    6) Reduce waste materials    7) Reduce greenhouse gas emissions    8) Implement biodiversity preservation initiatives

5. Quality and product safety    1) Ensure product safety    2) Quality management system (QMS)    3) Provide accurate product and service information 6. Social contribution    1) Social contribution

Structure and management

The general manager for Purchasing & Logistics is responsible for formulating and executing plans related to procurement based on the Basic Procurement Policy. Tosoh Corporation promotes procurement activities in cooperation with its complexes and related divisions in line with established plans.

Purchasing & Logistics conducts CSR self-assessment questionnaires (SAQ) and audits of suppliers to confirm their status regularly. In addition to the procurement of raw materials and materials by Purchasing & Logistics, Tosoh also engages in procurement activities through its divisions and the administration departments at its complexes.

CSR procurement initiatives

Supplier evaluation

Tosoh Corporation shares its CSR Procurement Guidelines with its suppliers and asks for their understanding of its CSR procurement-related policies and activities, as well as their compliance with the guidelines.

The company conducted evaluations for all suppliers for which Purchasing & Logistics is responsible, in the form of the CSR SAQ* from fiscal 2020 through fiscal 2022. No major environmental or social risks were identified in the survey results, but we requested that responding firms to provide feedback on the evaluation results for each area and to take improvement action where they were deemed below average. We will continue to conduct the SAQ regularly to confirm supplier activity status. If risks are identified, we will ask suppliers to make improvements and provide support for sustainable procurement.

*SAQ：Self-Assessment Questionnaire

Key questions in the CSR SAQ

Topic	Details
Overall CSR promotion	Policies, structures
Fair trade & corporate ethics	Regulatory monitoring, policies, structures, education (for employees and business partners), entertainment and gifts, fair trade, whistleblowing, information security
Human rights & labor	Regulatory monitoring, policies, structures, education (for employees and business partners), forced labor, harassment, discrimination, child labor, wages, working hour management, right to collective bargaining, conflict minerals, occupational health and safety, health care
Environmental conservation	Regulatory monitoring, policies, structures, education (for employees and business partners), management systems, permits and licenses, resource conservation (resources and energy), water conservation, waste reduction, climate change prevention, biodiversity
Product quality & safety	Regulatory monitoring, policies, structures, education (for employees and business partners), quality control, traceability, management systems, information management
Social contribution	Participation in social contribution activities, business continuity plan (BCP)

Conflict minerals* initiatives

Tosoh is 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. We respond promptly and appropriately to requests from customers to investigate conflict minerals and confirm that we are not involved in their use. If we find that any of the minerals we use are linked to conflicts, we immediately stop using them.

*Tantalum, tin, gold, and tungsten produced in the Democratic Republic of the Congo and neighboring countries that have become a source of funding for armed groups and complicity in human rights abuses in conflict areas.

Sustainability information platform

Tosoh provides information as a member of EcoVadis, an international sustainability information platform. Moreover, it cooperates with CSR procurement surveys conducted by our customers.

Participation in initiatives

White Logistics promotion activities

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 to 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, consolidation of delivery dates and destinations, improvement of facilities on the shipper's side, shift to alternative modes of transportation, and promotion of joint logistics.

White Logistics promotion activities

Declaration of Partnership Building

Tosoh Corporation endorsed the objectives of the Declaration of Partnership Building and announced the statement in March 2022. The Declaration is Tosoh's principal business policy for cooperation, coexistence, and prosperity with suppliers along the supply chain and the establishment of new partnerships.

Declaration of Partnership Building

Chemical working group under the physical internet realization council

Tosoh Corporation, Mitsubishi Chemical Group, Mitsui Chemicals, and Toray led the establishment of a chemical working group at METI and MLIT’s Physical Internet Realization Council. The chemical working group will drive the implementation of the Physical Internet roadmap formulated by the Council to create an ideal future for logistics by 2040. Specifically, it aims to create a framework for sustainable logistics that balances productivity and safety with reduced CO₂ emissions through measures that include reforming commercial practices in logistics, standardization, and formulating, implementing and informing stakeholders of action plans related to digital transformation (DX) promotion.

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Communication with Stakeholders

Basic concept

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

Relationships with stakeholders

The Tosoh Group promotes environmental, social, and government (ESG) initiatives based on its corporate philosophy and Tosoh Group CSR Basic Policy, and provides value to its stakeholders through 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, the Integrated Report, 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 shareholders and investors

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

Stakeholder	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	Financial results, financial presentations Securities reports Business reports Corporate governance reports Questionnairs from ESG evaluation agencies Questionnaires for individual shareholders Tosoh Integrated Report	General meeting of shareholders Financial results presentation Business briefings Teleconferences Small meetings Individual interviews Briefings for individual investors Plant tours
Customers	Providing safe, secure, convenient, 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	Sales activities Quality assurance support Exhibitions Audits Call centers
Local communities	Ensuring safe and secure operations Contributing to community development Building and maintaining relationships of trust with local communities	Pamphlets about the Nanyo and Yokkaichi Complexes and the laboratories	Plant tours Exchange through community events Community dialogues and opportunities to exchange ideas
Municipalities	Complying with laws Disclosing information appropriately and in a timely fashion		Filings Meetings
Suppliers	Ensuring fair trade	CSR procurement guidelines CSR self-assessment questionnaires (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 Safety and Health Committee Training Business reports (interviews with supervisors) Dialogues with management Workplace roundtable

Shareholder composition (as of March 31, 2023)

Individual meetings with institutional investors and securities analysts (non-consolidated)

	Fiscal 2021	Fiscal 2022	Fiscal 2023
Meetings	197	211	236

General Meeting of Shareholders

The General Meeting of Shareholders is held in Shunan City, Yamaguchi Prefecture, where our head office is located. In fiscal 2023, in the interest of mitigating the spread of COVID-19, the company scaled down the size of the meeting and livestreamed it for shareholders who could not be present in person. Over the three-year period from fiscal 2021–2023, an average of 40 people attended. The convocation notice is sent out three weeks prior to the date and disclosed on the company's website one week in advance of the event.

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 by smartphone. Moreover, the company has adopted the Electric Voting Platform operated by ICJ Inc. to provide domestic and foreign institutional investors with the opportunity to exercise their voting rights electronically.

General Meeting of Shareholders

Management overview briefing

Tosoh announces its quarterly financial results in the form of a briefing session or teleconference for institutional investors and analysts. The president and the head of each sector 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 2023, Tosoh held the presentation as a Medium-Term Management Plan briefing, which included the announcement of the plan. The president and the head of each group explained their business forecasts, capital investment, R&D, and responses to climate change.

 
Medium-term business plan overview briefing

Plant tours for individual shareholders

In response to shareholder requests, we offer plant tours to individual shareholders to help them understand more about Tosoh. While we did not offer these tours in fiscal 2021–2023 due to measures against COVID-19, we are considering resuming plant tours, to reflect the current situation regarding the virus. We have also held two company briefings for individual investors and will  maintain active communication with our shareholders, aiming to remain a trusted company.

Dialogue with customers

Communication through business activities

Tosoh 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 R&D accompanies clients in order to offer 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 has offices in Tokyo (headquarters), Osaka, Nagoya, Fukuoka, Sendai, and Yamaguchi, and also conducts community-based sales activities. Further, Tosoh has strategically situated its product warehouses near its customers' bases to speed up deliveries.

Bioscience Division initiatives

The Bioscience Division is involved in everything from product development to manufacturing, sales, and product maintenance within the Tosoh Group. We value the opportunity to engage in wide-ranging dialogue with customers, including exhibitions, seminars on new products, equipment training, and plant inspections, and we also provide web-based support for customers who find it difficult to meet in person. There is also a customer support center where customers can feel free to inquire about product operation, interpretation of results, and scientific information. The entire division is cooperating to build a structure that allows customers to use our products with peace of mind.

 
Bioscience Division exhibition

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 products are shipped. The Organic Chemicals Division has established a Cleaning Technology Office in the Tokyo Research Center. 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 precisely satisfy their needs, and provides follow-up services.

 
Organic Chemicals Division cleaning test

Engagement with local communities, government, and municipalities

The Tosoh Group strives to build relationships of trust with local communities, governments, and municipalities by proactively creating opportunities for engagement with them in all regions, in Japan and abroad. Through this dialogue, we seek to earn understanding from local communities, governments, and municipalities about our business and initiatives, while listening to their opinions and requests to improve our future efforts.

Dialogue with suppliers

Tosoh positions supply chain management as one of its core CSR issues, and as such has established a basic procurement policy and shared its 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.

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Social Contribution Activities

Basic concept

Tosoh 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. Tosoh will continue to deepen exchanges through dialogue with local residents and aim to be a safe, reliable, and trustworthy company. In fiscal 2023, the company received 953 visitors at its complexes and laboratories.

 
13^th Yamaguchi Higashi community meeting (Nanyo area)

1^st Kasumigaura community disaster prevention council in fiscal 2023 (Yokkaichi area)

Number of visitors to complexes

	Fiscal 2021	Fiscal 2022	Fiscal 2023
Visitors	548	870	953

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 4,500kg, enough to provide polio vaccines to about 2,000 people. Tosoh will continue to support bottle cap collection activities.

The Chamber of Commerce and Industry also sponsored an industrial sightseeing tour for parents and children during the summer holiday for the first time in three years, fostering deeper relations with local residents.

Additionally, we held the 12^th Tosoh Group Summer Children's Theater. This free initiative allows children to watch movies to help them develop healthy minds and rich emotions. A total of 750 people attended eight screenings.

Donation to Kids Village Tsukushi Nursery

Donation to Red Feather Community Chest

Cooperated in project involving collection of plastic bottle caps

Summer industrial sightseeing tour for parents and children

12th Tosoh Group Summer Children's Theater

The Yokkaichi Complex registered as a donor with Mie Prefecture's food donation system Mie-ru and provided emergency food for disaster relief. Mie-ru is a web-based system for sharing information on food that companies and organizations donate, with recipients including food banks and children's cafeteria operators. Until now, we have disposed of emergency rations for disasters except for those that employees wished to take home, but using Mie-ru allows us to give the rations to those in need. This time, the Yokkaichi Social Welfare Council accepted the food donation, assisting those in need and reducing food waste. Another labor union initiative was collecting unneeded stationery, toys, and daily necessities, and providing support for single-parent families in their daily lives.

Donation to Yokkaichi Social Welfare Council

Support for single parent families

Certificate of Appreciation (for using Mie Prefecture's food donation system Mie-ru)

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. Every year, the Nanyo Complex holds its Clean Up My Nanyo program in the hope that local residents can use sidewalks and parks more freely. In fiscal 2023, we held the main event in Tosoh Park Eigenzan, and approximately 300 people participated. We had cleanup teams work in five park areas while maintaining measures to prevent COVID-19 infections. The Yokkaichi Complex held its Tosoh Cleanup Walk for the first time in two years. In roughly an hour of cleaning, 130 kg of waste was collected, primarily from drink cans and combustible trash. Going forward, in addition to conducting cleanup activities, we will clarify the purpose and significance of such activities and work to heighten employee awareness.

Clean Up My Nanyo (Nanyo area)

Tosoh Cleanup Walk (Yokkaichi area)

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.

The Nanyo Complex offered work-study programs for junior high school students in the neighborhood. They got workplace experience and learned about Tosoh through an office tour, lessons on business manners, and hazard simulation training at the Education and Training Center.

Sakuragi Elementary School office tour (Nanyo area)

Imajuku Elementary School office tour (Nanyo area)

Sumiyoshi Junior High School, Kikugawa Junior High School workplace experience (Nanyo area)

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.

The Yokkaichi Complex hosted the Yokkaichi Children's Science Seminar, organized by the Yokkaichi Board of Education, where we provided a hands-on class on making bath bombs. The children were all smiles during the activity, commenting on how much fun they had and how they wanted to make bath bombs at home. We hope this experience allowed them to become more familiar with chemistry in everyday life.

Yokkaichi Children's Science Seminar (Yokkaichi area)

Teaching at Akatsuki Junior High School (Yokkaichi area)

TRY! Activities

In fiscal 2023, we held the summer junior science class for the first time in three years, conducting science experiments with elementary and junior high school students from all over Yamaguchi Prefecture. The students made batteries using white charcoal and generated energy using a bicycle and a power generator. They looked excited when their experiments were successful. We will continue our efforts to make further contributions to the local community.

Summer junior science class

Visiting lecture at Tomita Higashi Elementary School

Joint cleanup activities (Tosoh Park Eigenzan)

Fiscal 2023 activity results

Exhibit	Date	Activities & themes	Activity details
Summer Junior Science Class	7/31/2023	Making batteries using white charcoal and generating energy using a bicycle and a power generator	Brief overview of Tosoh Experiment to generate electricity using white charcoal, aluminum foil, copper wire, and saltwater Experiment to experience the amount of electricity consumed by everyday electrical appliances on a bicycle
Teaching at Tonda-Higashi Elementary School (Teaching classes for fourth graders)	11/25/2023	Making bouncy balls and experimenting with paper chromatography	Brief overview of Tosoh Making bouncy balls using salt, laundry starch, and water Experiment to differentiate colors using chromatography principles
Joint cleanup with Nanyo Technical High School and Shin-nanyo High School	12/12/2023	Picking up leaves and composting them at Tosoh Park Eigenzan	Joint cleanup in Eigenzan Park (picking up leaves) Collected leaves are added to compost boxes in the park for use as soil Attended by the Nanyo Complex's General Affairs section, TRY!, and Environmental Protection section

LET’S activities

At the Yokkaichi Plant, members of LET'S (Local Education with Tosoh), 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 2023, 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.

Presenting silica glass crystal models

Tosoh SGM presented gifts in the form of quartz glass crystal models as chemistry teaching materials to the National Institute of Technology, Tokuyama College and eight prefectural high schools in Shunan and Kudamatsu, Yamaguchi Prefecture.
We hope these models help students become more familiar with and gain a deeper understanding of the microscopic world of crystals.

Presentation ceremony at Nanyo Technical High School

 
Set of crystal models

Athletic competition

The Nanyo Complex holds baseball and soccer tournaments to promote the sound development of children together with the community through sports.

15th Tosoh Shunan City School Children's Softball Tournament

26th Tosoh Cup Soccer Tournament

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 comprise the fabric of 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

Taiwan

In conjunction with commemorating its 22nd anniversary as a company, Tosoh Quartz Co., Ltd. (Taiwan) cleaned up public areas around the surrounding science park as part of its mutual aid efforts under the CSR program.

Conducted in partnership with its business partners, this activity promotes health while contributing to a clean environment, qualifying it as a health promotion effort under ISO 45001.

Cleanup activity

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