CSR
Sustainability Governance
Sustainability Governance
Guided by our Mission—"to create a bright future in harmony with the environment, in collaboration with its customers, based on chemistry,"—we will improve our corporate value to continue to be a company needed by society and that takes action to help create a sustainable society.
In Tokuyama's promotion system for CSR management, the CSR Promotion Council, chaired by the President and including all Executive Officers, encourages corporate governance and makes decisions on important items related to sustainability. In addition, Tokuyama's Risk Management and Compliance Committee, chaired by the director supervising the Corporate Social Responsibility Division, has been established under the CSR Promotion Council to handle risk management and compliance, seen as the core and the "two wheels" of internal control. At the same time, expert committees were spun off from the Risk Management and Compliance Committee to respond to issues in highly specialized and important fields. In FY2022, the Sustainability Committee was established as the eighth expert committee, responding to sustainability issues not covered by other expert committees in order to strengthen our governance. In FY2022, this committee had four meetings to mainly discuss initiatives to be taken for climate change, soft law responses related to external disclosure, and responding to human rights issues, including those in the supply chains.
Risk Management system
Tokuyama manages risk through the Risk Management and Compliance Committee, which operates under the CSR Promotion Council, as well as through expert committees set up separately from this. The Risk Management and Compliance Committee considers events and factors that have newly emerged or that have undergone a change in impact, by monitoring social conditions and coordinating with each committee. It then assesses whether these constitute risks, and determines expert committees to respond to them. These expert committees deliberate important matters and ensure management in critical and specialized areas from the perspective of risk management and compliance. In FY2022, a new Sustainability Committee was established to respond to risks that fall outside the scope of existing expert committees. The Company has designated a department responsible for regulations pertaining to management of the risk of loss for each committee, which undertakes activities based on the management regulations. It also works to mitigate compliance risk by establishing management systems for understanding important laws and regulations that are relevant to business execution, and for keeping track of trends in amendments to those laws and regulations. The Company has also established a business continuity plan (BCP) and other measures in order to ensure an appropriate response by type and severity in the event of natural disasters, accidents and other significant crises.
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Business Continuity Management (BCM)
Tokuyama has formulated, and continues to update, a BCP (business continuity plan) to ensure that circumstances do not prevent important operations from continuing. We also secure funding and resources to make certain that business keeps going, as we engage in business continuity management in normal times, including taking preventive measures, while we strengthen our ability to continue business operations.
In addition to emergency drills at individual factories, Tokuyama conducts an annual drill for establishing a Crisis Response Headquarters and a safety confirmation and reporting drill as a Group-wide initiative.The Crisis Response Headquarters to address the novel coronavirus (COVID-19) (Chair: the President) established in February 2020 took measures to ensure the safety of employees worldwide and business continuity. With the subsidence of COVID-19, we dissolved the Crisis Response Headquarters during fiscal 2022.
Compliance
Tokuyama understands "compliance" to have a broad meaning, including not only compliance with laws and internal rules but also behaving sensibly in a manner that conforms with corporate ethics and meets social expectations. To communicate and spread awareness of compliance throughout the Group, the Company has put together a handbook presenting the Tokuyama Group Code of Conduct, the Tokuyama Group's Five Conscience Clauses, etc., It is distributed to all Group employees.
Compliance Education & Training
To communicate and spread awareness of compliance throughout the Group, Tokuyama provides training on legal obligations for new directors and auditors of Group companies and a variety of compliance training programs for employees. In 2022, these training programs were held on 48 occasions. The Company also implemented a variety of e-learning programs focused on 5 occasions in total Mental Health Management, human rights and amendments to the Whistleblower Protection Act.
Whistle-Blowing System
An internal helpline has been established to enable safe, anonymous reporting and consultation regarding compliance violations involving the Tokuyama Group (including potential violations) without fear of unfavorable treatment. Reporting and consultation can be carried out by post, email, or phone.
The helpline is operated with due consideration for the protection of whistleblowers. Employees can use the helpline without disclosing their name or department to the Company, and a female attorney is also available for consultation. From fiscal 2021, the Company are expanding and operating the internal reporting system by setting the system up to be compatible with Japan's revised Whistleblower Protection Act, familiarizing employees with the system, and ascertaining the number of reports and consultations in the Tokuyama Group overall.
Program to Prevent Harassment
Harassment itself is a compliance violation, and there are also cases in which major problems are behind harassment, such as inappropriate operations. Given this, the Tokuyama Group started a Harassment Prevention Program to wipe out harassment from the Group. As one of these efforts, we have designated December as Harassment Prevention Enhancement Month and are conducting educational activities.
Information security policy
Security incidents, such as cyber-attacks and unauthorized access, present serious risks to internal control system and have the real potential to compromise business continuity and adversely impact society's trust in a company. The Tokuyama Group therefore considers responses to information security risks and cyber security risks (hereinafter referred to as "security risks") as important management issues common to the entire Group and makes concerted efforts to reduce these security risks.
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Development of a security risk management structure
Tokuyama shall establish an organizational structure and internal rules for security risk management capable of handling normal operations and emergencies, in order to address any security incidents that could potentially arise at the company, Group companies, or in the supply chain, as and when they occur. In addition, management shall ensure the effectiveness of the security risk management system by gaining a full understanding of security risks before they occur and appropriately allocating management resources, such as securing and training personnel with appropriate skills, and allocating the necessary budget. -
Implementation of security risk management
Recognizing that changes in the business environment and the adoption of new technologies give rise to new security risks, Tokuyama regularly assesses the security risk management status of all Group companies and comprehensively implements security risk countermeasures as and when appropriate, and ensures the effectiveness of such countermeasures. -
Compliance with laws, ordinances and regulations
Tokuyama complies with security risk-related laws, ordinances and guidelines, and ensures the effectiveness of security risk management. -
Education and training
Tokuyama provides the necessary education and training to enable Group employees (including, where necessary, those involved in the supply chain) to recognize the importance of security risk management, and to engage in appropriate use and management of the internet, cloud services, and information devices, etc. -
Detection and response to security incidents
In order to minimize the damage caused by a security incident, Tokuyama makes efforts to detect security incidents and signs of security incidents at an early stage, and in the event that a security incident is detected or identified, appropriate response measures are taken immediately, and appropriate measures to prevent reoccurrence are taken after the incident is resolved.