Sustainability

Background of the Establishment of the Sustainability Promotion Committee

TRS group has established the management philosophy of “As a reliable company, we create new values and contribute to creation of an earth-friendly society based on the respect for human being” and is promoting our corporate activities.
Also in our medium-term management plan “TRS Vision-2025”, which was already released, we have set our ESG/SDG goals in order to build a sustainable society, and are continuing our activities to achieve it.
This time, we have established our Sustainability Promotion Committee to further strengthen and accelerate our sustainability promotion activities while aiming to achieve sustainability of both the society and TRS group.

TRS Group Basic Sustainability Policy

TRS group proactively strives to solve ESG issues and build a sustainable society as well as advance initiatives to increase our medium-and-long term corporate value.

Environment

TRS group aims to build a sustainable society by producing environment-friendly products with an awareness that the global environment protection in every step in corporate activities is one of important challenges common to human being.

Society

Under the basic philosophy of “Respect for Human Beings”, TRS group has established the basic policy for health management to promote employees’ health as well as proactive communication between all stakeholders to deepen mutual understanding, thereby building a win-win relationship that achieves coexistence and co-prosperity.

Governance

In order to thoroughly ensure legal compliance and misconduct prevention in our corporate activity promotion, TRS group thoroughly advances initiatives for compliance and risk management to strengthen governance.

1.Environmental management

1.1　Environmental Policy

Tokyo Radiator Manufacturing recognizes that the protection of the global environment at all stages of corporate activities is one of the important issues for all humankind , and realize a sustainable society by those products which contribute to that purpose, we will take following actions.

1. Based on compliance, social requirements, and corporate vision, we will establish an annual plan and work toward the achievement of environmental goals.
2. We will continuously improve our environmental management system to improve our environmental performance.
3. At each stage of product design, manufacturing, and service, we will consider the impact on the environment from the perspective of the life cycle and promote the development of environment-friendly products that do not contain harmful substances.
4. Through activities to reduce environmental risks, we will prevent pollution and reduce the environmental load generated by corporate activities.
5. We will comply with environmental laws, ordinances, agreements and other requirements, set voluntary standards, and work on environmental conservation.
6. We will reduce the amount and emissions of environmentally hazardous substances such as chemical substances, and promote the change to appropriate alternatives.
7. We will work to protect biodiversity and ecosystems in order to protect the local environment.
8. We will promote 5R and reduce waste.
9. We will work to reduce greenhouse gases (CO2, etc.) in order to mitigate the impact on climate change.
10. We will promote communication with stakeholders through public relations activities and cooperate with local communities, governments, and local governments for the environmental protection.
11. We will cooperate with affiliated companies, customers and business partners in order to reduce the environmental burden from the entire supply chain.We also request all concerned parties to comply with relevant laws and regulations.

※5Rs・・・Refuse , Reduce , Reuse , Repair , Recycle

1.2 　Environment management framework

Organization of the Environment Management Committee We hold a meeting of the Environment Management Committee, for which the environment management supervisory manager serves as the Chair, to deliberate basic environmental policy establishment, identification of major issues, setting of goals based on such issues, and progress management.

1.3　Initiatives for EMS

For the purpose of reducing environmental burden, we have acquired the certification of the international environment management standard ISO14001 to continuously manage and improve whole business activities in our organization.

Status of ISO14001 certification acquisition
Certification body: DNV Business Assurance
Standard name: ISO14001:2015
Certification No. C630000

2.Response to climate change

2.1　Initiatives for carbon neutral

In the medium-term management plan, we announced the goal of reduction in CO2 emission from our production towards the achievement of carbon neutral in 2050. Based on this, we have established a road map and are advancing company-wide initiatives to achieve it.

Goal of reduction in CO2 emission
・20% reduction in FY2025 compared to FY2018
・35% reduction in FY2030 compared to FY2018

2.2　Utilization of sustainable resources

（１）Resource saving and waste reduction

As an initiative towards a recycling-oriented society, we are promoting 5 Rs for continuous and effective utilization of resources and waste reduction.

（２）Preservation of water resources

We are striving to reduce the amount of water used in our production activities. We are improving efficiency by working to recycle the well water used for cooling equipment in the manufacturing process and reduce the cleaning process size or eliminate it, thereby reducing impact on water resources.

Water circulation cleaning equipment

Water cleaning machine

2.3　Pollution prevention and chemical substance control

（１）Pollution prevention

Waste water from cooling equipment or parts cleaning in the manufacturing process is treated in the waste water treatment facility, and then discharged to public water area. For discharging, we are performing a proper treatment while thoroughly monitoring it to prevent pollution.

（２）Chemical substance control and emission reduction

We are performing a thorough chemical substance control in every step ranging from development to manufacturing. In order to meet national/international regulations and customer regulatory requirements, we have formulated the control standards for restricted substances while collecting information on law amendment as necessary (by utilizing IMDS or JAMA, etc.). Before adoption of chemical substances, our Safety and Health Committee deliberates them to reduce or eliminate environmentally burdening substances by changing to safety materials for example.

2.4　Efforts in product development

（１）Development of environment-conscious products

We have developed a heat exchanger (EGR cooler) that meets global needs to achieve both automotive fuel efficiency improvement and cleaner gas emission, and are supplying various small-to-large sized products for trucks and passenger vehicles to automotive manufacturers all over the world.

（２）Consideration for product weight reduction and recycling

We are promoting weight reduction and development of recycling-oriented products by using aluminum as a material for radiators and fuel tanks equipped on trucks.

（３）Reduction of environmentally burdening substances

In order to meet national or regional regulations in the world, we are reducing environmentally burdening substances in our products.

2.5　Efforts in production activities

（１）Reduction in CO2 emission

We are reducing CO2 emission by increasing efficiency in production lines in our plants and visualizing the amount of energy used.

（２）Reduction of chemical substances

We are working to reduce the amount of chemical substances used in manufacturing by reviewing production processes.

2.6　Initiatives for biodiversity preservation

We focus on the relationship with ecosystem in our business activities, and promote preservation of region-specific insects, animals, and plants.

（１）Preservation of aquatic ecosystem

Based on the regional biodiversity strategy in Fujisawa city, we have created a biotope to preserve aquatic life and plant ecosystem. Throughout the year, birds and insects such as water strider, red dragonfly, Orthetrum albistylum speciosum (subspecies of white-tailed skimmer), anax parthenope gather here, forming an environment where the cycle of egg laying and eclosion is performed.

Biotope

Dragonfly larva (Anax parthenope)

（２）Preservation of insect ecosystem

We are preserving the environment where beetles, which live around our premises from a long time ago, in our green spaces for preservation of the species. We release beetles eclosed in such environment and provide them to after-school childcare centers or for use in child events in natural parks as educational materials, thereby building an environmental conservation awareness in children who will be major players in the next generation.

（３） Preservation of green spaces in our premises

We maintain green spaces in our premises where there are about 3,000 trees, including about 100 species. In these green spaces, insects and wild birds gather in each season, forming their ecosystem.

3.Environmental data

●Goals and results of CO2 reduction

4.Safety and Health

“Basic concept” Under the basic philosophy of “Ensuring employees’ safety and health is our top priority”, we all create the safest and best workplaces in our industry.

[Basic philosophy for safety and health]

Ensuring employees’ safety and health is our top priority.

[Declaration of safety]

We enhance our awareness of risks and achieve zero accident occurrence.

4.1　Safety and health promotion framework

We have established the safety and health management organization to promote activities related to prevention of industrial accidents, hygienic environment management, employee health promotion, and fire prevention. To build a company where employees can work safely and in good health, our Safety and Health Committee, which consists of the members of the labor union and management, deliberates the contents of basic measures based on the annual activity plan and industrial accident prevention measures, and confirm the progress of the safety and health plan of each department.

4.2　Activities for safety and health

●Safety assessment and diagnosis

●Safety and health education

New employee education

Forklift safety education

4.3　Occurrence status of industrial accidents

4.4　Fire prevention management activities

（1）Activities of the self-defense fire prevention team

For the purpose of developing experienced firefighting equipment operators, ensuring early firefighting action, and enhancing the awareness of fire prevention management, employees selected from each department receive training of indoor fire hydrant operation and fire pump operation. Our fire prevention team participate in the plant firefighting operation competition held by the Fujisawa city firefighting cooperative association in October every year, and won the excellence award in the fire hydrant category in the last year. Our team focuses not only on fire prevention activities for an emergency, but also contribution to community activities.

（2）Fire prevention management assessment

We have established our own fire prevention management standard, and are performing quantitative assessment of fire risks in each process. We certify and value employees who passed the examination as an assessing staff, thereby enhancing an awareness of fire prevention management of each person.

5. Initiatives for improvement of employees’ health

Under the basic philosophy of “Respect for Human Beings”, TRS has established the basic policy for health management, and is advancing various initiatives

5.1　Declaration of health management

We develop an environment where employees can work vividly and creatively and in good health, thereby vitalizing organizations and realizing a sustainable growth of the society. Furthermore, we promote activities that result in happiness of employees and their families.

5.2　 Basic policy for health management

（1）For the “body” of each employee

We strive to provide information and opportunities for raising awareness so that each employee can enhance health literacy, face own health problems, voluntarily receive disease treatment, and take healthy actions (adequate diet, sleep, fitness habits, quitting smoking, etc.) based on the health check results.

（2）For the “mind” of each employee

We aim to create a comfortable work environment where diverse human resources can work with ease and enthusiasm while responding to mental health problems based on stress check results, thereby striving to promote mental health in a broad sense, including vitalization of communication in workplaces.

（3）For the “peace of mind” of each employee

We strive to maintain a sound and hygienic environment including protection against infectious diseases, providing workplaces where employees can work with peace of mind.

5.3　 Promotion framework

We have established the promotion organization, for which the President serves as a health management officer, in cooperation with the promotion officer (responsible managing director), the in-house administrative office, relevant departments, the Safety and Health Committee members, and the labor union. The Board of Executive Officers approves the basic policy for health management. The annual plan and implementation contents are formulated and the progress is reported in the management meeting so that opinions from management and employees are reflected and the PDCA cycle functions. By doing so, we aim to achieve our KPI goal.

5.4　Execution status of main measures

Health measures for the “body”

（2）Health measures for the “mind”

（3）Protection against infectious diseases

●Aid for flu vaccination (Provision of health care token)

  For the health management strategy map, click here

5.5　Indexes and target values

We are continuously understanding the results of implemented initiatives and verifying their effects to review initiatives so that health care issues are solved and health of employees and their families is maintained and improved.

※Presenteeism: Health-related productivity loss while at paid work.
※Absenteeism: Absence from work due to health issues

We were certified as a health and productivity management organization in 2023

In the “health and productivity management organization” certification system, which is jointly promoted by METI and Nippon Kenko Kaigi, we were certified as a health and productivity management organization in 2023 (in the large-scale company category). We advance various initiatives for health management so that employees can work vividly and creatively and in good health in the future.

6.Initiatives for governance

１）Basic concept

We are striving to increase the corporate value and stably grow in long term. To achieve this, we are aware that it is important to contribute to building an affluent society and build a good relationship with all stakeholders though our business activities. Under this concept, we advance initiatives to ensure adequate corporate governance.

２）Basic policy

（１）We strive to ensure stockholders’ rights and equality and develop an environment where they can execute their rights properly.
（２）We strive to properly cooperate with other stakeholders than stockholders.
（３）In addition to information disclosure according to applicable laws, we proactively provide information to secure transparency.
（４）In order to make a transparent, sound, and agile decision, we ensure proper execution of roles and duties of the Board of Directors.
（５）We strive for a constructive two-way communication with stockholders to provide proper information in timely manner.

３）Overview of the current corporate governance framework

TRS has adopted an auditor system. We have established the Board of Directors and the Board of Auditors as company organizations specified in the Companies Act to proceed with resolution, supervision, and audit for important operation execution. Furthermore, we have established the Board of Executive Officers and the Global Compliance Committee as supplemental organizations

（１） Board of Directors

The Board of Directors consists of five directors including two external directors. In principle, the Board of Directors meeting is held once each month. If necessary, a special meeting is held to deliberate and resolve on the matters of important operations. All auditors attend the Board of Directors meeting and provide opinions as necessary.

（２）Board of Auditors

The Board of Auditors consists of four auditors including two external auditors and one full-time auditor. Each auditor attends the Board of Directors meeting as well as audits general operations of directors according to the audit policy established by the Board of Directors.

（３）Board of Executive Officers

The Board of Executive Officers consists of eight executive officers. They discuss important matters of management in advance, proceed with operations to the extent of authorization commissioned by the Board of Directors, and deliberate and resolve on the matters of measure execution, etc.

（４） Global Compliance Committee

The Global Compliance Committee consists of all executive officers and those of affiliated companies. This has been established in order to confirm the compliance status of laws, articles of incorporation, and in-house regulations.

（5）Governance Committee

The Governance Committee consists of external directors and auditors, and the President. The Board of Directors consults this committee regarding important matters such as the basic policy of appointment and reward. The external director serves as the Chair.

４）Basic concept of the internal control system and its development status

Decision overview on the system for ensuring that directors’ duties are executed in compliance with laws and articles of incorporation, and the system for ensuring the appropriateness of company’s other operations is as follows.

(1)　System for ensuring that directors’ and employees’ duties are executed in compliance with laws and articles of incorporation

• TRS Group Code of Conduct is established so that executives and employees behave in accordance with to laws, articles of incorporation, and norms in society.
• The general affairs department controls initiatives for compliance across departments, and play a center role of education for executives and employees.
• An easy voice system (whistle-blower system) is established as a means of direct information provision by employees, thereby striving to identify doubtful behavior in terms of legal compliance.
• We have no relationship with anti-social forces. We respond to undue claims of anti-social forces with resolute attitude throughout the organization.　If any director or employee is approached by such forces, that person promptly reports it to the immediate superior and relevant department, and follows their directions.
• Furthermore, if any director or employee encounter an illegal or criminal conduct such as fraud/extortion directly or indirectly during work, or a situation where such conduct is likely to occur, that person promptly reports it to the immediate superior and relevant department while responding to such forces with resolute attitude, and follows their directions.
• We maintain and strengthen the internal control system for ensuring reliability of the financial reporting based on the Financial Instruments and Exchange Act, and related rules and standards.

(2)　Storage and control system for information related to directors’ duty execution

• Decision documents such as directors’ meeting minutes related to directors’ duty execution or approval documents for decision making based on the administrative authority standard are stored and controlled by the responsible department according to the document control rules.
• Directors and auditors can browse these documents at any time.

(3)　Rules and other systems for managing risks of loss

• In order to maintain and enhance the risk management framework, we regularly hold a “Risk Management Committee” meeting to continuously consider important matters, and perform cross-sectional control such as establishment of rules and guidelines, training execution, and manual creation/distribution. For newly raised risks, we promptly appoint a director as an officer responsible and minimize each risk.

(4)　System for ensuring that directors’ duties are executed efficiently

• The Board of Executive Officers, for which the President serves as the Chair, is established under the Board of Directors. The Board of Executive Officers discusses important matters of management in advance, proceeds with operations to the extent of authorization commissioned by the Board of Directors, and deliberates and resolves on the matters of measure execution, etc.
• The Board of Executive Officers establishes the medium-term management plan and the yearly profit plan for operation, and company-wide goals. To achieve these goals, the administrative authority of directors and tasks for which they are responsible are clarified, thereby improving efficiency in duty execution.

(5)　System for ensuring the appropriateness of operation of a company group that consists of our company and its parent and affiliated companies

• Each department of our company works in mutual cooperation with relevant departments of the parent company to execute an appropriate and efficient group management.
• Although we, as a member of the group, may implement a procedure to report certain important matters we carry out to the parent company for confirmation, we make our own decision as a listed company independently of the parent company.
• We notify our policy to and share our information with the groups’ affiliated companies in regular meetings such as the Board of Executive Officers meeting. Meanwhile, based on the DOA rules, we require the report on certain important matters from each company and confirmation to us, thereby ensuring the appropriateness of operation of the group’s affiliated companies. In addition to this, the TRS Group Global Code of Conduct, which is applicable up to the group’s affiliated companies, is established. Meanwhile, the group’s affiliated companies establish their own code of conduct, striving to be in compliance with laws and articles of incorporation as a group. Furthermore, the group’s affiliated companies also introduce an easy voice system (whistle-blower system), and report the violation of laws or articles of incorporation if they occur.
• Internal auditor office regularly audits the affiliated companies to confirm the status of compliance with laws and articles of incorporation and risk management.

(6)　Matters concerning employees if auditors require the appointment of supportive employees for their duties, and matters concerning such employees’ independency from the directors and ensuring effectiveness of the directions given to such employees from the auditors

• If auditors require supportive employees for their duties, consultation with auditors is held and employees are appointed as full-time or concurrent staff members.
• For ensuring independency from directors and effectiveness of the directions given to such employees from auditors, such employees proceed with their duties according to the directions given from auditors. Regarding personnel change and evaluation related to such employees, agreement from auditors is needed.

(7)　System for reporting to the Board of Auditors or an auditor from directors or employees, and system for reporting to other auditors

• Based on the request from auditors, directors and employees explain the status of duty execution as well as report important decisions of our company and our group, policy, and management status in various board meetings in which auditors participate.
• Directors and employees report the status of duty execution and issues to be discussed in a regular department audit that is based on the annual audit plan created by auditors.
• The internal audit office regularly reports audit results to the Board of Auditors.

(8)　System for ensuring that audit is effectively executed by the Board of Auditors or auditors

• Opportunities for regular opinion exchange between auditors and the President are provided, and auditors receive regular audit reports from the auditing company
• Budget for expenses is discussed in an advance consultation, and proper actions are taken to ensure payment in accordance with laws.
• We do not treat a person who reported to auditors unfavorably because of his/her reporting.