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ESG・SDGs

Initiatives for SDGs (sustainable) management

Based on the corporate philosophy, on the premise of
“Sustainable Development Goals ( SDGs),”
our company will strengthen our efforts for Environment,
Society and Governance (ESG).

Corporate Philosophy

Satisfaction to our Customers Earth Friendly and Environmentally Conscious Dreams and Vitality to our Society
Our company will resonate with customer sustainability management philosophy and social contribution policy, and play a part in achieving this through our company’s products and services. Our company will actively promote activities that take into consideration the global environment and contribute to solving global environmental problems through our company’s products. Our company will contribute to society in the field of manufacturing utilizing our core technology. We will also aim to be a growing company trusted by all stakeholders, including customers, shareholders, employees, business partners, and local communities.

Sustainability Basic Policy:

The Ferrotec Group has aimed to become a company that enjoys growth while contributing to society through its contribution to and provision of innovative products and services that are high quality and cost competitive. It does so while harmonizing with the international community through its corporate philosophy of “Satisfaction for our Customers, Earth-Friendly and Environmentally Conscious, Dreams and Vitality to our society”. To achieve these aims, our company will contribute to the solving of global environmental problems by environmentally friendly manufacturing utilizing core technology as well as contributing to the solving of social issues and sustainable development as a company trusted by society under proper corporate governance. Our company cordially solicits our business partners to support this policy and act on it.

Our company will comply with international rules and regulations,
work on anti-corruption and carry out our business fairly and honestly.
Our company will respect human rights,
will not discriminate and will not perform child labor or forced labor in any form.
Our company will value relationships with stakeholders and
will disclose information in a timely and appropriate manner.

Matrix table by stakeholder (long-term investor) and
impact on our business (including social issues)

Materiality of SDGs identified by our company

Item Materiality Priority theme Specific efforts
(Work schedule, including goals)
Initiatives for SDGs
EEnvironment Considering environmental pollution and contributing to reduction of greenhouse gas emissions Product development and supply

- Contribution to power consumption reduction by the development of insulated heat dissipation substrates for power semiconductors (DCB, AMB, and DPC) and popularization in the market

- Contribution to CO2reduction with the progress of recycling of dummy wafers by promoting the recycled wafer business

Production engineering management

- Contribution to energy saving and resource saving by improving production efficiency through the promotion of computerization, automatization and digitalization (Chinese subsidiary)

- IT system strengthening (ERP, MES, QMS, CRM, etc.)

- Warehouse automation* Most of the warehouses of the factories of the Chinese subsidiary are scheduled for automation by 2022

Quality management

- Employee awareness change by the promotion of strengthening quality control “Quality is life” (Complaint rate reduced by 50% year-on-year)

- Conducting quality questionnaires for employees as part of a change of consciousness (Chinese subsidiary)

Environmental management

- Factory PV panel installation (Chiba, Chinese subsidiary)

- Factory LED conversion and reuse of wastewater and waste heat (Chinese subsidiary)

- Installation of drainage/ exhaust monitoring monitor (visualization)

- Reduction of industrial waste and logistics materials according to ISO14001 (Chiba, Chinese subsidiary)

- Reduction of CO2, industrial wastewater, reuse and compliance with chemical substance management according to Environmental Activity Evaluation Program 21, Ministry of the Environment (Ishikawa)

- Formulation of Decarbonization Plan (zeroing emission)

Procurement management

- Strengthening the green procurement management of our company by promoting the activities of the Green Procurement Promotion Committee (Installed in FTHD) (Currently not in operation)

SSociety Contributing to maintaining and improving the health of all people utilizing core technology Product development/ supply

- Contribution to the prevention of spread of COVID-19 infection by the supply of PCR core device products (thermo-module)

- Contribution to the medical and health field by the development of in vitro diagnostics using ferrofluid beads (under development)

Contribution to semiconductor and automobile related technological innovation and infrastructure development through the supply of materials in the high-tech field Product development and supply

- Contributes to digital infrastructure development utilizing IoT, AI, etc. through material products, silicon wafers, insulated heat dissipation substrates for power semiconductors and thermo-modules and contribution to technological innovation of vehicles such as EV and automatic driving.

- Goal setting, management & awards of the number of applications for IP/ utility models

- Engineering development by common development theme setting with universities in China (Zhejiang, Fudan, Shanghai Ligong Daxue, Northwest, Shanghai Finance and Economics, etc.)

- Newly established research institute (power device, wafer)

Utilization and development of diverse human resources External cooperation and active promotion of young people

- Building an excellent human resources supply route such as discovery of future executive candidates, etc. by active support and strengthening of cooperation with active support to university and research institutes (Ishikawa, Chinese subsidiary)

- In-company activation and organizational metabolism by actively promoting young executives (Company-wide)

- Improving the quality of hiring operator personnel (Active recruitment of professional school and night university graduates)

Improve employee engagement Employee employment management

- Excellent employees’ retention reinforcement by the establishment of employee holding association and granting employee incentives (Chinese subsidiary)

- In-company activation by fostering a corporate culture of “Pay for Performance” (Ability principle).

- Strengthening factory safety management system (Company-wide)

- Improvement of factory welfare (Meals, lodgings), etc. (Chinese subsidiary)

- Employee career path support by the active holding of in-company study meetings inviting visiting lecturers (Chinese subsidiary)

Social contributions

- Inauguration of President He Xian Han to Part-time lecturer at Zhejiang University and lecture start (planned)

- Scholarship donation (Zhejiang University and Anaheim University)

- Support to Akira Yamamura Scholarship Foundation.org.

GGovernance Compliance and strengthen risk management Compliance, risk management system

- Aggregation of various risk information from group companies by the Risk Management Committee (Centralization of information)

- Thorough dissemination of whistleblowing contact and strengthening of BCP support

Active disclosure to stakeholders Information disclosure system

- Active disclosure considering not only the Tokyo Stock Exchange Standard, but also the impact on stakeholders (PR information included).

- Regulate internal disclosure process and rules

Our company will contribute to the realization of a sustainable society
and realize sustainable growth as a company by respecting all stakeholders who support our company and facilitating coexistence.

【G】Main stakeholders who support Ferrotec Holdings

Stakeholder Overview
Customer Our company has customers in various fields such as semiconductors, electronics, automobiles, medical care, and energy all over the world.
Regional Society Our company is coexisting with each region and society in the world and expanding our business globally.
Investor Our company is developing our business with the support of investors such as individual investors, domestic and overseas institutional investors, financial institutions, trust banks, stock companies, etc.
Business Partners/Suppliers Our company is developing business activity by connecting with suppliers and business partners around the world and facilitating coexistence.
Employee Our company has more than 7,000 employees on a consolidated basis.

Skill matrix

No Director name
(Titles omitted)
Class Corporate management and industry expertise Manufacturing (production/ quality) Legal/ risk management Technology/ R & D Financial accounting/ Dialogue with capital markets Sales/ marketing ESG/ Sustainability Global experience
1 Akira Yamamura Director
2 He Xian Han Director
3 Takeru Yamamura Director
4 Hiroo Wakaki Director
5 Takanori Suzuki Director
6 Eiji Miyanaga Director
7 Kuniaki Yanagisawa Outside director
8 Tatsuo Okada Outside director
9 Iku Shimooka Outside director
10 Takamasa Higuchi Outside director
11 Go Fujimoto Outside director
12 Masaru Yoshida Auditor
Number of applicable persons (people)/ Total number (people) 9/12 3/12 5/12 2/12 5/12 3/12 6/12 10/12
Same as above (%) 75% 25% 41.7% 16.7% 41.7% 25% 50% 83.3%

* When one item has multiple necessary backgrounds / experience and if any one of them is applicable, “I can contribute” (●).

  • Independent outside director

    3 people

  • Foreign/ Female director

    2 people

【E】Contribution to reduce greenhouse gas emissions
in consideration of environmental pollution

Contribution through our company’s products
  • ● Temperature control in each field by the “Thermoelectric module” that does not use CFCs
  • ● Contribution to power consumption reduction through “Power Electronic Substrates”
  • ● Reduction of power consumption in audio speakers using “Ferrofluid”
Contribution through our company’s business activities
  • ● Power generation with clean energy using solar panels (Chiba plant, Chinese subsidiary)
  • ● Reduction of industrial waste based on ISO14001 certification, reduction of logistics materials (Chiba plant, Chinese subsidiary)
  • ● Ministry of the Environment “Eco Action 21” certification-based reduction of carbon dioxide emissions, reduction and reuse of industrial water drainage and compliance with chemical substance management (Ishikawa plant, Kansai plant, Ishikawa development center)