Major Initiatives Related to the SDGs|TOWA Corporation

Major Initiatives Related to the SDGs

Development, Manufacture and Sale of Products Incorporating Proprietary Technologies	Specific Initiatives	Relevant SDGs
Development of Resin-efficient Equipment	As a leading manufacturer of semiconductor packaging equipment, we have long been involved in the development of products designed to impart a low environmental impact. Shortly after our founding in 1979, we developed the multi-plunger system, which increases the efficiency of resin use. This innovation has significantly reduced the amount of waste resin generated. Furthermore, in 2009, we developed a unique compression molding method that achieves resin efficiency of 100%, an achievement that represents zero waste. CPM1080 By developing innovations grounded in our proprietary technologies, we are staying focused on the development and manufacture of products with high added value. These products contribute not only to the health of the global environment, but also to technological innovation worldwide.
Zero-Defect Initiative	We are dedicated to the development of products with high added value that lead to stable production of high-quality products that consistently satisfy our customers. When we develop a product that prevents defects from emerging in the next process, our customers are able to maintain a stable supply of high-quality products.
Customer Experience Management	We are working on improving customer experience for further growth on a global scale. "Customer Experience" emphasizes not only the value of products and services, such as their functionality, performance, and price, but also the value of the customer's experience during the process of purchase, using the product, and after-service. In order to improve customer experience, it is essential to improve employee motivation and job satisfaction (employee experience), so we have implemented experience management system, and are promoting initiatives from the perspective of the value of both experiences. Please further check the effects of our experience management on below Qualtrics web site. ■TOWA + Qualtrics https://www.qualtrics.com/jp/customers/towa/ Through our "quarter-lead" policy,　we will continue to enhance both the value of customer experience and employee experience to provide the market with "new products, new products, and services."

Human Resource Management	Specific Initiatives	Relevant SDGs
Human Resource Development	Promoting Personal Development and Acquisition of Qualifications
	Every year we offer all our employees two opportunities to take distance learning courses. In addition to our Group Attendance system, which encourages employees to take courses, we provide financial assistance for those completing a course as well as a bonus for those with outstanding performance. We also suggest courses leading to certifications and acquisition of qualifications, and subsidize the cost of examination fees for those who pass the exams. We are providing strong support for our employees’ personal development efforts by devising ways of reducing the financial burden and providing greater motivation for our employees to continue learning. By giving all our employees an equal opportunity to further their education, we aim to nurture individual abilities and motivation. At the same time, we are encouraging the personal growth of individuals who can play active and varied roles in the public and private sectors, not just within a corporate framework.
	TOEIC Examination Incentive
	In recognition of our employees’ need to maintain their fluency in English, the lingua franca in today’s world of global communication, we encourage all our personnel to take the TOEIC IP (Test of English for International Communication — Institutional Program). The Company bears the full cost of the test once a year, thus reducing the financial burden on employees, while further increasing their motivation by establishing a system of awards commensurate with the score achieved. As a result, our employees can learn on an equal footing and are supported in their self-improvement efforts.
	Awards System
	We have established a system of awards to honor the positive efforts of our employees. In addition to issuing commendations for long years of service, we offer awards for significant contributions to our corporate performance. Specifically, our Challenge Award recognizes employees who have succeeded in taking on difficult challenges, while our Global TOWA Award commends the accomplishments of TOWA affiliates worldwide. We strive to create an environment in which employees are encouraged to take on challenges without fear of failure. At the same time, we are helping to motivate the members of the TOWA Group as a whole by ensuring all employees are rewarded for their initiative.
Work Style	TOWA Work Style Reform Policy
	The TOWA Work Style Reform Policy was adopted on April 1, 2020. Since we regard our employees as our most valuable asset, we place the highest priority on the health and career satisfaction of every employee. We therefore regard work style reform as a priority management issue. The TOWA Work Style Reform Policy was formulated to demonstrate appreciation of employee independence. Thus, we encourage all employees to consider their own work style and those of others in order to improve our work environment. We also advise our employees to seize opportunities for personal growth and development by nurturing the power to change. By respecting and supporting the values and lifestyles of each individual employee, we are taking steps to create an environment in which all employees can work happily and pursue a healthy work-life balance.
	Supporting our Employees' Returning to Work after Maternity and Childcare Leave
	We understand that employee health and career satisfaction are closely tied to the ability of our employees to continue working actively when they bear and raise children. We have therefore instituted a system that is flexible enough to accommodate various lifestyles so that we can provide a supportive workplace environment. Going forward, we will continue to promote the development of a welcoming environment in which more employees can take maternity leave and childcare leave with peace of mind and can feel comfortable and confident when they return to the workplace.
	Work-Life Balance
	Our approach of regarding our employees as our most valuable asset greatly supports their efforts to develop a beneficial work-life balance. In light of this, we have established the “creative holiday” system to encourage our employees to take paid leave, thus providing an opportunity for them to become more aware of the importance of maintaining a healthy work-life balance while also ensuring they remain fully motivated in their careers. Moreover, we encourage our employees to leave work on time, which contributes to greater work efficiency while also maintaining or improving their physical and mental health. In addition, we set summer vacations in July and August to give the employees more time for themselves and their families. We truly value the mental and physical health and well-being of each individual employee and will continue to create an environment that respects individual approaches to work.
Health Management	The TOWA Health Declaration
	A flood of health leads to prosperous business We are dedicated to maintaining or improving the health and well-being of all our employees, with the awareness that good health contributes to peak performance in both the physical and mental realm. A state of good health also contributes to prosperous corporate performance. While we remain focused on creating a workplace full of heartfelt smiles, we also support the health of our employees and their families and the emergence of a cheerful society.
	TOWA Club Activities and Company Events
	We encourage our employees to participate in club activities for the purpose of promoting good communication, improving health, supporting the pursuit of hobbies and continuing education, and training the mind and body. Many of our employees participate in athletic and culture club activities they initiated themselves. The Company also subsidizes some of the costs of these activities in order to reduce the burden on individuals and to support each employee’s efforts to maintain a healthy work-life balance. In addition, we hold softball tournaments, bowling competition, and other such events in which family members can participate. These events improve the health of employees and their families while also contributing to greater worker satisfaction.
	The Stress Check System
	Since December 1, 2015, stress checks have been mandatory for all workplaces with 50 or more employees. The purpose of our Stress Check System is to prevent workers from developing mental health issues. We monitor the stress levels of our employees by having them complete a multiple-choice questionnaire on their perceived level of stress. We compile and analyze the results and are pleased to have achieved a 100% employee participation rate since this initiative was first instituted in 2015. Our approach of regarding our employees as our most valuable asset underpins our ongoing efforts to minimize our employees’ stress levels and improve our workplace environment.

Contributing to Human Health and a Healthy Environment	Specific Initiatives	Relevant SDGs
Used Equipment Sales	TOWATEC Co., Ltd., a wholly owned subsidiary of the Company, purchases used semiconductor manufacturing equipment, refurbishes it, sells it, and provides product support consistently. This equipment can be purchased at a reasonable price and meets the needs of customers seeking low-end and middle range equipment. By putting this equipment on the market for reuse, TOWATEC is contributing to the efficient use of resources.
Good Health and Well-being	Medical Device Manufacturing
	BANDICK Corporation, a wholly owned subsidiary of the Company, manufactures plastic molded products for medical devices. It also manufactures specially regulated medical devices under the authority of Japan’s Ministry of Health, Labour and Welfare. BANDICK operates a factory that manufactures a variety of products and is capable of fully integrated production ranging from molding to assembly in a clean room. By applying the technology and expertise acquired through their precision mold manufacturing for medical equipment, BANDICK is contributing to the health of society.
	Supporting the "3-9 Yano Fund"
	Akihiro Yano, current manager of the Hanshin Tigers baseball club, established the “3-9 Yano Fund” (the Japanese pronunciation of 3-9 being a homonym for "thank you") to support individuals with muscular dystrophy as well as foster homes in Japan. This foundation raises funds through its own vending machines, and we are proud to have installed the fund’s vending machine in our Company. The vending machine we installed in 2015 was the first such machine installed in Kyoto.
	In-house Blood Drive
	Each year in the spring and summer, in cooperation with the Japanese Red Cross Society, we hold a blood drive for our employees in order to support those requiring blood transfusions and blood products to treat illnesses and injuries. In recognition of our support for their blood drives over the years, the Japanese Red Cross Society graciously presented TOWA with the Silver Merit Award and the Golden Merit Award. We remain committed to collaborating with the Japanese Red Cross Society to promote blood donations and raise awareness of their need as part of our effort to support people around the world who require blood transfusions.
Global Environmental Conservation Initiatives	Conservation of Resources
	We recognize that preservation of the global environment is an urgent issue of importance to all humankind. Consequently, we conduct ongoing and rigorous monitoring of the amount of resources we consume, such as electricity and paper. In addition, we submit reports to the national government and administrative bureaus as required by laws and ordinances. We remain dedicated to managing our resource consumption in the interests of global environmental conservation.
	Green Procurement and Green Design Initiatives
	In order to comply with the RoHS Directive on regulated substances and reduce our use of environmentally hazardous substances in both our material procurement and design and manufacturing processes, we have established our own Green Procurement Guidelines and Green Design Regulations. We also require our suppliers to comply with these guidelines as part of our effort to protect the environment across our supply chain. This initiative reflects our commitment to the design and development of environment-friendly products.
	Management System for Environmentally Hazardous Substances
	We have adopted our own Chemical Substance Management Regulations and strictly manage all chemical substances used in our products with reference to Material Safety Data Sheets.
	Reducing Emissions of CO₂ and Industrial Waste
	As efforts toward reducing CO₂ emissions, we switched all the electricity used at major domestic establishments (semiconductor manufacturing equipment business) to the renewable energy derived electricity. Also, we plan to place solar panels on the roof of Kyoto East Plant annex now under construction (completion scheduled for March, 2022) and cover necessary energy. We recognize that the preservation of the global environment is an important issue for all humankind. We therefore manage our emissions of carbon dioxide and industrial waste in order to ensure a continual reduction of these environmentally damaging substances. Moreover, as required by laws and ordinances, we submit reports to the national government and administrative bureaus as necessary. We remain committed to reducing the environmental impact of our business operations.
	Initiatives related to water use
	From the perspective of sustainable business activities and the conservation of the global environment, regarding water usage, we set a yearly target that the total amount of water used per sales does not exceed the previous fiscal year, and make efforts to reduce water use. Please refer to the ESG data page for actual data. In addition, as we are expanding our business globally, we have started a water risk survey at all TOWA Group production bases. We use "AQUEDUCT", a water risk mapping tool developed by the World Resources Institute (WRI), to confirm water risks in the areas where we operate. Based on these analysis and evaluation results, we will promote improvements in water utilization efficiency and take measures according to the water risks of each production base.
	Consolidation of In-house Shipments
	In fiscal 2019, we began to take steps to consolidate product shipments to the greatest extent possible. As a result, transportation costs and other indirect costs have decreased, even as our production volume has increased. Similarly, the reduction in the number of shipments has contributed to a decrease in fuel consumption by trucks and other vehicles while also minimizing exhaust gas emissions and improving the work environment for drivers. We are also examining a change in our packing method from our conventional wooden frames to a tri-wall (three-layer reinforced corrugated cardboard) method, and we are considering ways to further reduce the amount of waste materials generated.

Fulfilling our Duties as a Global Citizen	Specific Initiatives	Relevant SDGs
Regulatory Compliance	In-house Training
	Mainly through e-learning, we provide our employees with the knowledge and training necessary to conduct business activities and engage in corporate life in compliance with laws and social norms. We provide training on a regular basis to ensure our employees acquire the knowledge and awareness they require. Examples of the training we provide include the following: compliance training, export management training, harassment prevention training, mental health education, information security training, and environmental training.
	Internal Reporting System
	Our General Affairs Department has set up a dedicated email address as a consultation point for employees and has established a mechanism for employees to submit reports and arrange consultations directly. We have also created an email address exclusively for the use of female employees that serves as a direct means of contacting the female employee supervisor. (Personal interviews can also be arranged.) When necessary, the Investigation Committee will conduct an inquiry and consult with outside experts. Moreover, we are implementing a set of internal rules to prevent whistleblowers from suffering any consequences for their reporting.
	International Cooperation
	We are striving to conduct our business activities that consider the environmental impact, working environments, etc. in the supply chain from procurement to product supply to customers. The Responsible Business Alliance (RBA), a corporate alliance that promotes corporate social responsibility in the global supply chain, has established a Code of Conduct that contributes to safer working environments in the supply chain, ensures that workers are treated with respect and in a dignified manner, and that responsibility is taken for manufacturing processes imparting an environmental impact. We conduct our business activities in accordance with this Code of Conduct together with our customers who are members of the RBA.
	Respecting Human Rights in Practice
	TOWA Group, in its own business activities, will deepen its understanding of respect for human rights, and will conduct appropriate activities based on this "Human Rights Policy“.
	Prevention of Corruption
	Based on "Anti-Corruption Policy", TOWA Group strives to thoroughly prevent corruption such as bribery, embezzlement, extortion of profits, or fraudulent bidding etc., that is abusing of the power and status of one's own or a third party's duties. In addition, we strive to thoroughly prevent judicial obstruction or money laundering, etc., which are compliciting acts.
Corporate Governance	We manage our Company in accordance with the Corporate Governance Code (the principles and guidelines set forth by Japan’s Financial Services Agency and the Tokyo Stock Exchange as guidelines for corporate governance of listed companies). At the same time, we continue to seek a more effective governance system, taking into account the circumstances of other companies and the policies of companies that provide advice on the exercise of voting rights. Going forward, we intend to manage our Company in a more transparent manner that satisfies our stakeholders.
Risk Management	We have established a Risk Management Committee, chaired by the president, as the Company’s highest risk management body. Its purpose is to undertake, on a regular basis, the identification and evaluation of risks that should be addressed. This committee has established multiple risk management subcommittees to monitor risks in each area of concern every month in the realms of internal management, export management, quality assurance, disaster response, and other areas. The activities of these subcommittees are reported quarterly to the Board of Directors and the content of their activities is reviewed by outside directors as well.