Message from the Chairman

We will contribute to a sustainable society through management fully integrated with CSR

Launch a new mid-term management plan integrating social solutions into business activities
   In 2018, the Toyo Seikan Group launched its Fifth Midterm Management Plan.
   Looking ahead to the period after the 100th anniversary, we have been actively engaged in efforts to reform our business structure and reorganize the group and industry, while the business environment surrounding us has been drastically changing. Now we believed it was essential for us to review our Fourth Mid-term Management Plan, which started in fiscal 2016, with new perspectives, and decided to discontinue the existing plan to switch to the new one.
   Based on the Management Philosophy of Toyo Seikan Group established in 2016, we will promote corporate management integrated with CSR, which fully integrates business activities with social solutions. We have set the “eight materiality items” on which we place a high priority in CSR management, and will strive to implement them with all our strength. Through this commitment, we will contribute to achieving the Sustainable Development Goals of 2030 Agenda for Sustainable Development (SDGs).
Eight Materiality Items
   Now let’s look at each of the eight items of our materiality.

Development of packaging containers and services in line with social needs; Enhancement of quality assurance; and contribution to environmental protection

   Our key products, packaging containers, face a number of environmental issues. Today, almost all consumer products, except for a very few items such as automotive gasoline, are packaged in containers; people do not bring their own containers to buy contents. Despite this significance of packages in our living, they are disposed after being used. This is the reason why recycling has been encouraged all over the world. Recently, microplastic particles that are generated from plastic packages, including PET bottles, and drift around in the ocean, have become a serious social problem.
   As part of environmental management, we have been undertaking an initiative to bring a technical innovation to the production system for aluminum cans, which are broadly used worldwide. Can-making needs a huge amount of water to wash away lubricant that is used in the can forming process. According to an estimate, approximately 30 million tons of rinsing water is consumed in the world every year.
   The Toyo Seikan Group will commercialize a can production system that drastically reduces consumption and disposal of rinsing water. A new technology will be adopted in machines produced by Stolle Machinery, a group company and the world’s largest manufacturer of can and can-end making machines. I believe this will allow us to make a world-scale contribution to resource saving.
   In an environmental contribution through manufacturing, we cannot accomplish meaningful results without consideration to the entire supply chain. It is not sufficient to reduce CO2 emissions just from our own manufacturing processes. We also need to take account of raw material procurement, suppliers’ production methods and how consumers use the product, as well as recycling and disposal processes. The Group therefore calculated the amount of Scope 3 emissions, the green gas emissions from upstream and downstream of our supply chain. Meanwhile, three of our Thai subsidiaries plan to launch solar power generation utilizing roofs of their factory buildings, which is expected to start by fiscal 2019.
   We will continue our efforts, together with our suppliers, to achieve “zero carbon emissions” in the entire supply chain.

Respect for Employees

   Respecting employees, one of our materiality items, is also a significant management issue. It is essential for the Group’s sustainability to create a corporate culture that allows diverse individuals to actively work in good health and provides them with various opportunities to generate high productivity. I strongly believe that a company with a sufficient capacity to accept different perspectives dares to face challenges and is able to take advantage of people’s different views to accomplish growth.
   As the first step to become such a company, we have set the target ratio of female recruits at 30% of all new recruits, aiming to create a workplace where women are able to play significant roles. We believe that the improvement of work environment from the viewpoint of women’s active involvement will lead to the creation of a workplace comfortable for everyone, including the elderly and the disabled. The latest recruitment results show that women accounted for 36% of the new employees in administrative and technical departments, while the ratio was only 19% of total new recruits across the organization including manufacturing departments. We will continue with discussion and examination from various standpoints to draw up effective measures to achieve the goal.

More sustainable supply chain; Respect for human rights; and Coexistence with communities

   In addition to our internal issues of business operation, we need to give consideration to social issues that exist in global supply chains.
   As to respect for human rights, which constitutes the fundamental platform of all CSR activities, we are required to take human rights of all relevant parties from suppliers to consumers into consideration, as well as human rights of our own employees. We, as the Toyo Seikan Group, also need to take the initiative in CSR procurement, which some of our suppliers have already requested us to implement, focusing on specific aspects of “human rights, environment and social issues” in our supply chains.
   To coexist in harmony with communities, we will continue our contribution to communities based on the specific issues of regions where group companies operate.

Ensuring thorough compliance

   It is regrettable that, in 2017, the Japan Fair Trade Committee conducted an on-site inspection at the Group’s key operating company Toyo Seikan for alleged violation of the Antimonopoly Act. Since then, I have met all employees in sales section of the company, every time around 20 members in a meeting, to hand down the founder’s lofty ambition and to discuss SDGs, thereby aiming to ensure compliance and deepen their understanding of CSR. In the next step, I will also pursue other initiatives, including bribery prevention.
Contribute to the creation of a sustainable society, utilizing two validity scales: the Group’s Management Philosophy and SDGs
   We have two scales to measure the validity of direction of our efforts: the Management Philosophy of Toyo Seikan Group and the Sustainable Development Goals (SDGs).
   The Group’s Management Philosophy has succeeded the spirit of founder Tatsunosuke Takasaki, who stated in the “Fundamental Policy of the Company” that “our aim is to contribute to the happiness of mankind through packaging.” The Management Philosophy stipulates our management policy as “we will constantly create new and innovative values, aspire to achieve a sustainable society and contribute to people’s happiness.” Meanwhile, SDGs are referred to as a scale to measure how well a corporation fulfills the social responsibility, as mentioned by Ms. Hiroko Kuniya, the former anchorwoman of NHK’s news show Close-up Gendai.
   We will always conduct our business operation based on these two scale, the Group’s Management Philosophy and SDGs, while engaging in efforts to accomplish our eight materiality items. This is the way we contribute to the creation of a sustainable society, and I believe our commitment to these efforts is the meaning of the existence of the Toyo Seikan Group.
Takao Nakai

Chairman and Representative Director Toyo Seikan Group Holdings, Ltd.

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