Promotion of Sustainability Management

Our Sustainability management, in which we seek to contribute to a sustainable society and ensure long-term commerce,
forms an integral part of the implementation of our corporate philosophy.

GS Yuasa Group's Sustainability

"Innovation and Growth", our corporate philosophy, is the basis of the GS Yuasa Group's Sustainability management. We believe our mission is to create “innovation” through the development of new technologies and the renewal of business processes without the restrictions of old customs. Accordingly, we aim to achieve sustainable development of business and society, by not only expanding profits, but also contributing to people, society, and the global environment. Furthermore, by responding swiftly through our business to global social issues and the needs and expectations of interested parties, we aim to become a company in which society places long-term trust and hopes for us to remain a presence into the future.

See details of GS Yuasa's philosophy

Sustainability Promotion Framework

Our Group has established a framework with the Sustainability Promotion Committee supervised by the Board of Directors constituting the core, to promote sustainability initiatives in a diversified manner throughout the Group over the medium- to long-term.

In this framework, the company president has been designated as the chief commanding officer for managing the entire Group’s sustainability promotion. Further, the corporate governance framework with the company Board of Directors which makes important management decisions for the Group as its core, supervises and manages the suitability of sustainability management in the Group. Moreover, the Sustainability Promotion Committee, established at our core operating subsidiary (GS Yuasa International Ltd.) which is the primary decision-making body for the Group’s business execution, works to discuss, formulate, and promote overall sustainability activities, thereby promoting group-wide sustainability management initiatives.

The Sustainability Promotion Committee is chaired by an officer (the officer in charge of corporate communications) who has the role of promoting medium- to long-term initiatives for the resolution of key sustainability issues, and comprises of members from heads of major business divisions and Group companies. This Committee manages the response status of risks and opportunities related to sustainability issues that need to be handled by each division and Group company.

Important matters (including modifications to key sustainability policies, and response to risks and opportunities associated with key sustainability issues) discussed at the Committee meetings are communicated group-wide following their resolution. Further, the Board of Directors reviews and approves information for company-external disclosure of sustainability information related to the Group.

Sustainability Promotion Process

Our Group aims to enhance corporate value and stakeholder satisfaction by implementing a Sustainability promotion process that is based on our corporate philosophy which reflects the Group’s enduring corporate values.

In order to implement our corporate philosophy, the Group has formulated the Sustainability Management Policy, which determines the future direction for achieving a sustainable society and enhancing corporate value. This policy emphasizes dialogue with stakeholders and makes a commitment to contributing to solutions to sustainability issues and maintaining strong business foundations.

We have also established the CSR Policy, which comprises action guidelines for attaining the Sustainability Management Policy, and we are committed to promoting initiatives to address sustainability issues related to the CSR Policy. Regarding the major areas of CSR policy, we have compiled the CSR Code of Conduct, which clarifies the specific direction of CSR activities, and individual policies clarifying concrete behavioral standards in CSR activities.

To achieve our Sustainability Management Policy, we have implemented medium- to long-term business strategy processes (such as our Mid-Term Management Plan to achieve our Long-Term Vision that takes into consideration sustainability issues). In addition, to achieve this policy, we are committed to promoting initiatives to manage sustainability issues related to action guidelines formulated for employees (hereinafter referred to as the CSR Policy). We have formulated both these plans to ensure the economic growth and sustainability of society and the Group by taking into account the needs and expectations of stakeholders and social, environmental, and economic issues. Further, through suitable analysis and assessment of the status of responses to crucial risks and opportunities related to sustainability issues and conducting necessary reviews, we strive to ensure continuous improvement of our sustainability initiatives. Moreover, to implement our CSR Policy we have formulated a CSR Code of Conduct that defines specific behavioral standards of responsible corporate conduct and ensure that these are disseminated to all company employees.

Overview of Sustainability Promotion Process

image:Overview of CSR Promotion Process

Promoting Company-Wide Sustainability Initiatives

To promote company-wide sustainability initiatives, the Group distributes the document, the Vision Book, that clarifies our corporate philosophy to all our employees. Through the distribution of our Vision Book, which provides a clear overview of our corporate philosophy, sustainability management policies, Long-Term Vision, and action guidelines, the direction, future vision, and values of the Group’s sustainability management are shared with all our employees.

Our CSR Manual, detailing the Group’s policy on responsible corporate conduct (CSR Policy) which serves as action guidelines for sustainability management, is also distributed to all our employees. Behavioral standards underpinning the CSR Policy are clarified for employees in Q&A sections and columns covering key topics, along with a checklist for employee self-assessment of behavioral conformity with the CSR Policy. Our CSR manual, translated into local languages (six languages) that local employees can understand, has been distributed to overseas Group companies. The Group is committed to ensuring that all domestic and overseas employees are cognizant of sustainability issues related to our CSR Policy and is making efforts for the promotion of sustainability initiatives through business activities.

Materiality-Related Initiatives

To achieve our Sustainability Management Policy, the GS Yuasa Group identifies risks and opportunities relating to action guidelines (CSR Policy), assesses the impacts on business and Society, and clarifies key sustainability issues (materiality) concerning the CSR Policy. After considering perspectives such as reinforcing our business foundations and enhancing corporate value, we formulate a business plan that corresponds to those material issues (a materiality response plan) and set management indicators and targets to measure the progress of the plan.

In addition, the Group body that promotes sustainability (the Sustainability Promotion Committee) regularly reviews materiality and the content of the materiality response plan, taking into account the needs and expectations of the stakeholders, sustainability issues, and other considerations. Furthermore, appropriate risk responses are implements by using the Group’s risk management system to address significant risks that concern the CSR Policy.

The GS Yuasa Group aims for enhanced management of financial and non-financial operations, as well as for sustainable corporate and social growth through execution of business processes that incorporate materiality in the Long-Term Vision and Mid-Term Management Plan.

See details of GS Yuasa’s Long-Term Vision and Mid-Term Management Plan

Materiality Specification Process

1. Identify risks and opportunities relating to the CSR Policy (Step 1)

We identify risks and opportunities relating to the CSR Policy, taking into consideration key issues of the Mid-Term Management Plan, which is formulated based on the Sustainability Management Policy. When identifying these risks and opportunities, our actions are based on international guidelines concerning responsible corporate conduct.

2. Specify significant risks and opportunities relating to the CSR Policy (Step 2)

We evaluate and assign a score to the risks and opportunities identified in Step 1 and specify risks and opportunities that could have a substantial impact on business. Next, we evaluate the impact of our Group’s business activities on society relative to these risks and opportunities that could have a substantial impact on business and then identify significant risks and opportunities relating to the CSR Policy.

Domains for identifying significant risks and opportunities relating to the CSR Policy (key CSR domains)

graph:Domains for identifying significant risks and opportunities relating to the CSR Policy (key CSR domains)

3. Determine materiality (Step 3)

We analyze risks and opportunities identified in Step 2 and determine significant sustainability issues (materiality) relating to CSR Policy. In order to ensure the appropriateness of materiality, we also incorporate feedback from stakeholders including outside experts when determining materiality.

Materiality and Response Plan

A summary of the Group's materiality response plans and the impact of these plans on society and business are presented in the following table.

With respect to materiality shown in the table, we are conducting operations and management based on the measurable target management and management criteria, make ongoing improvements and perform effective maintenance and management. The details of the plans are periodically reviewed and revised according to changes in sustainability issues and the needs and expectations of stakeholders.

When carrying out the Mid-Term Management Plan, the first year of which is fiscal 2023, we formulated new materiality response plans to address significant sustainability issues. After summarizing the fiscal 2022 materiality response plans and reviewing the materiality, we established materiality response plans for fiscal 2023 and later. In these plans, we not only establish indicators and targets to manage the impact of significant sustainability issues on society, but also assess the impact on business using financial indicators.

Summary of Materiality Response Plans
(fiscal 2023–2025)

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Materiality Activity outline Scope of application* KPI
(key performance indicator)
FY 2025 targets Impact on Society Impact on Business
Thoroughly fulfilling our CSR and ensuring compliance Provision of legal information and promotion of compliance training Domestic
  1. Number of times compliance education information disseminated annually
  2. Number of significant compliance violations
  1. 16 times
  2. None
Maintenance of a sound and well-ordered society Avoidance of financial losses from compliance violations
  1. Achievement ratio of compliance training plan
  2. Achievement ratio of significant compliance violation risk response plan
Respect and protection for intellectual property Promotion of the use of company intellectual property rights Global Achievement ratio of patent acquisition plans that contribute to the expansion of business 100%
  • Promotion of high value-added technological innovations
  • Maintenance of a fair competitive order
  • Increased profits in conjunction with the expansion of business
  • Prevention of lost sales in the future due to sales of counterfeit products
Elimination of infringing products Overseas Number of orders to cease manufacturing against manufacturers of infringing products 2
Strict management of confidential information Promotion of security measures and strengthening of illegal /inappropriate access monitoring Global Cyberattack response ratio at time of detecting high security alerts 100% Achieve a safe and secure information society Avoidance of financial losses from leaks of confidential information
Domestic Information leak confirmation and response ratio at time of large data output 100%
Promotion of information security training Domestic Ratio of employees passing information security proficiency test 95% or more
Respect for individuality Promoting human rights education Domestic Achievement ratio of human rights training plan 100% Raise awareness concerning respect for human rights Avoidance of financial losses from human rights violations
Overseas Achievement ratio of harassment education plan 100%
Thorough management of human rights risks Domestic Harassment incident response ratio 100% Promotion of safe work environments that provide peace of mind
Global Achievement ratio of foreign national employment risk response plan 100%
Respect for Diversity Women’s empowerment Domestic
  1. Ratio of women in management positions
  2. Ratio of women among new graduates recruited for career-track positions
  3. Ratio of female workers
  4. Achievement ratio of training plan for female senior managers
  1. 6.0% or more
  2. 30% or more
  3. 17% or more
  4. 100%
  • Realization of rewarding workplaces
  • Promotion of participation by women in decision-making
  • Acquisition of shareholders' equity in conjunction with higher external assessment of measures regarding women's empowerment
  • Securing labor capacity by increasing the retention rate for female employees
Promotion of the employment of persons with disabilities Domestic Employment rate of persons with disabilities 2.67% or more Promotion of full employment Avoidance of financial losses in conjunction with failing to satisfy the statutory standard for the employment ratio of persons with disabilities
Human resources development Promotion of human resource development programs Domestic
  1. Achievement ratio of training plan for development of autonomous-minded human resources
  2. Achievement ratio of next-generation manager education plan
100% Promotion of skill development for young people
  • Reinforcement of organizational capabilities through the utilization of the diverse individuality of employees
  • Avoidance of human resource losses through separation
  • Enhancement of human resource performance
Enhancement of work environments and occupational health and safety Promotion of the thorough management of employees’ working hours and prevention of the recurrence of long working hours Domestic
  1. Response ratio to prevent the recurrence of long working hours
  2. Annual frequency of labor-management consultations relating to working hours
  3. Operational achievement ratio of standard for number of days of paid leave taken annually
  1. 100%
  2. 12 times
  3. 100%
  • Realization of rewarding workplaces
  • Prevention of health damage
  • Promotion of safe and secure working environment
  • Avoidance of financial losses from occupational accidents
  • Avoidance of financial losses from work in excess of statutory working hours and failure to use paid leave
Overseas Achievement ratio of overtime work reduction target 100%
Promotion of a work-life balance Domestic Job turnover of full-time employee 2.3% or less
Thorough implementation of appropriate employment management Domestic Number of corrective recommendations from the Labor Standards Inspection Office based on spot inspections None
Promotion of health management Domestic Rate of high stress individuals 10% or less
Promotion of occupational health and safety risk management Global
  1. Number of serious occupational accidents
  2. Number of accidents resulting in missed work
  3. Number of workers not meeting internal blood lead concentration management standards
  1. None
  2. Domestic:2 or less、Overseas:39 or less
  3. None
Provision of high-quality products Promotion of quality improvement and strengthening of quality communication Global
  1. Achievement ratio of targets for claims and in-process defects
  2. Number of serious product accidents
  1. 100%
  2. None
  • Improvement in energy efficiency
  • Responses to natural resource depletion
  • Reduce waste generation
  • Creation of highly reliable and robust infrastructure
  • Development of a safe and secure society
  • Reduction of financial losses from quality defects
  • Expansion of profits in conjunction with promotion of services
  • Avoidance of financial losses from the occurrence of product accidents
Reinforcement of product safety management Global
  1. Achievement ratio of product safety-related incident reduction target
  2. Achievement ratio of product safety education plan
Reinforcement of service provision Domestic Achievement ratio of service promotion project plan 100%
Promoting environmental protection Promotion of effective use of water resources Global Ratio of reduction of water use (compared with FY 2018) 15% or more
  • Elimination of water shortage problems
  • Improvement in energy efficiency and resource efficiency
  • Climate change mitigation
  • Prevention of water pollution and air pollution
  • Reduction of natural resource consumption
  • Reducing waste generation
  • Avoidance of loss of sales opportunities due to delayed responses to issues concerning water security, carbon neutrality, and a recycling-oriented society
  • Avoidance of financial losses from the occurrence of environmental accidents
Contribution to realization of low-carbon society Global Ratio of reduction of CO2 emissions (compared with FY 2018) 15% or more
Prevention of environmental pollution Global Number of major environmental accidents None
Improvement in ratio of use of recycled materials in products provided to markets Global Ratio of recycled lead used as lead raw materials in lead-acid batteries 70% or more
Developing and popularizing environmentally considered products Expansion of market for GS Yuasa products contained in products contributing to the curbing of global warming Global Percentage of environmentally considered products in total sales of all products 45% or more
  • Improvement in energy efficiency
  • Reduction of natural resource consumption
  • Climate change mitigation
  • Avoidance of loss of sales opportunities due to delayed responses to carbon neutrality
  • Increased profits from expanded sales of environmentally considered products
Responsible procurement promotion Responses to responsible mineral procurement Global Achievement ratio of responsible mineral survey plan 100%
  • Realization of sustainable supply chain
  • Abolition of forced labor and child labor
  • Reduction of deaths due to violence
  • Eradication of all forms of violence and torture against children
Avoidance of financial losses from occurrence of supply chain CSR risks
Management of supply chain CSR risks Global Achievement ratio of supplier CSR issues improvement plan 100%

The scope of application may not
cover all Group companies.

Refer here for detailed information concerning
materiality response plans