Key CSR Issues, Medium-Term Targets and Performances of CSR Activities

In fiscal year ended March 31, 2018, the Kawasaki Group identified material issues or materiality that we should address. In parallel, we reviewed the framework of our CSR activities: We positioned efforts in solving social issues through business as top priorities that the Kawasaki Group should achieve over a long-term, and defined other issues as CSR issues that underpin the management foundation.
The CSR issues that underpin the management foundation are classified into E (environment), S (society) and G (governance).

※ For the process of identifying materiality, please refer to here.

Framework of our CSR activities and materiality

※ Columns shaded in purple represent the materiality items.
Solving social issues through business Generating Clean Energy
Providing Safe and Secure, Clean, Comfortable Movement of People and Transportation of Goods by Land, Sea, and Air
Improving Social Infrastructure, Especially in Emerging Countries
Responding to the Needs of an Aging Society and a Shortage of Labor through Automation
Governance Corporate Governance
Compliance
Risk Management
Crisis Management
Innovation Management
Political Involvement
Deeping Awareness of Kawasaki Group Business Conduct Guideline
Anti-Corruption Measures
Export Control
Information Security
Environment Low-carbon Society (product – based contribution, business activities)
Society Coexisting with Nature
Recycling-oriented Society
Environmental Management
Heightened Awareness as An Environmentally Friendly Brand
Society Business and Human Rights
Product Liability and Safety
Customer Relationship Management
Employee Recruitment and Retention
Labor Safety and Sanitation
Labor Practices and Diversity
Human Resource Development
Supply Chain Management
Philanthropy and Contribution

In fiscal year ending March 31, 2019 and after, we will try to improve our CSR activities while repeatedly turning the PDCA cycles: Under a new framework, we will clearly define the departments and persons in charge, the vision, and KPIs of solving social issues through business and major items among the ESG items, and monitor the achievements every year.

CSR issues that underpin the management foundation

※ The KPIs are obligatory for materiality items of No. 2 through 9
(Year ending March 31)
No CSR issue item Vision Key Performance Indicator Fiscal 2019 targets
1 Solving social issues through business Please refer to here
2 Corporate Governance Transparency and soundness of management will be pursued to realize the autonomous operation of business divisions and display of comprehensive power of the Group. It is considered inappropriate to indicate numerical targets. Verification of the effects of the changes in the system of officers, etc. which have been implemented since April 2018 to separate the management and the executives.
3 Compliance To monitor the risk of occurrence of violation of compliance as accurately as possible.
To build the comprehensive, efficient compliance system corresponding to respective risks, which will be operated continuously and updated regularly.
  • Number of annual occurrence of serious violation of compliance.
  • No serious violations.

  • Improvement of the whistle-blowing system of overseas subsidiaries.

  • Holding liaison conferences for compliance at overseas bases.

  • Implementation of surveys on employees' awareness of compliance (in Japan).
4 Anti-Corruption Measures All the officers and employees understand the seriousness of the issue of corruption and the necessity for its prevention.
At the same time, we will construct the system effective enough for our company not to be involved in corruption, and operate it continuously and update it regularly.
  • Number of violations.

  • Number of members attending the training courses on bribery prevention.
  • No violations.

  • Holding the training courses on bribery prevention.
5 Product Liability and Safety Under consideration Under consideration Under consideration
※ Scheduled to be determined taking into consideration the results of the Corporate Quality Control Committee deliberation.
6 Employee Recruitment and Retention To construct workplaces where all employees of the Kawasaki Group can work in a lively way and show the best of their ability.
The entire Group companies are making the best use of personnel.
  • Increase in employee satisfaction in the personnel satisfaction surveys (in Japan).
  • Based on the results of the personnel satisfaction survey, the measures to be taken as the next step will be formulated and implemented.
  • Promotion of such activities as notification of the basic policy to the Group companies.
7 Supply Chain Management Further promotion of the CSR activities in cooperation with suppliers, with awareness of the CSR risks which may be posed to the entire supply chain.
  • Percentage of major suppliers responding to our CSR procurement questionnaire (targeted at 75%).
  • We will conduct the CSR procurement questionnaire survey covering major overseas suppliers to grasp the current situation of the companies in terms of CSR activities.
  • We will raise companies' interest in the CSR through revising the CSR Procurement Guidelines and spreading information on it to suppliers.
  • We will hold explanatory meetings on the CSR for suppliers to raise companies' interest in the CSR.
8 Business and Human Rights No occurrence of human rights violations regarding the entire value chain.
No involvement in human rights violations.
  • The number of participants in the training course on the human rights.
  • Formulation of the Group's Policy on the Human Rights.

  • Identification of the risk by conducting human rights risk assessment to find out where in the business process the human rights risk is hidden.
9 Low-carbon Society
(business activities);
Low-carbon Society (product–based contribution)
No CO2 emission in our business activities.

Provision of products and services that substantially reduce CO2 emission.
  • Percentage reduction of the basic unit of CO2 emission.
  • Percentage reduction of the costs for resources and energy.
  • Percentage utilization of natural, renewable energy.
  • 5% or more reduction of annual energy costs through the improvement activities.
  • 3% reduction year-on-year in the carbon basic unit of CO2 emission.
  • Reinforcement of the communicativity on the effects of reducing CO2 emission through contribution with products.
10 Stakeholder Engagement Through the dialogs with stakeholders, we will obtain their understanding of and confidence in the philosophy, managerial policy, business strategy, engagement in the ESG issues, etc. of our Group.
We will also reflect the stakeholders' opinions in our corporate activity to deepen mutual trust.
  • Maintenance and strengthening of communication with shareholders and investors.
  • Continuous implementation of the IR meetings.
  • Continuous holding of business explanatory meetings.
  • Continuous implementation of study tours in factories for shareholders.
  • Continuous implementation of dialogs with experts.
11 Risk Management To accurately grasp important risks which may have influence on management, and to reasonably control them.
  • To study what the company-wide risk management system should be.
    To express opinions on the method of ERM promotion and its materialization.
12 Crisis Management To prepare, drill on, and review the response system, procedure, etc. even in ordinary times, so as to achieve the commitment when in emergency by flexible response.
  • The review of the BCP drills, and the BCP, which has hitherto been implemented each fiscal year, will be continued in the years ahead.
13 Political Involvement The situation where formulation of public policies that will benefit the entire society is promoted, and there is no involvement in improper political process. Amount of contributions.
  • No illegal political contribution.
    No illegal involvement.
  • Disclosure of the amount of political contributions.
14 Innovation Management
(R & D, protection of intellectual properties, and use of open innovation)
  • To contribute to the formation of an affluent and beautiful society of the future, by continuously providing the market with "new products and new businesses" while maintaining the harmony with the earth environment.

  • Increase of added values of products and technology of each company.
  • Creation of new values being unbounded by the conventional concept of the value chain.
  • Number of applications for patent.
  • R & D expenses.

  • The modulus of external contacts, number of options, number of POCs.
  • Expansion of the service businesses in which the ICT and IoT are made use of.
  • Building of the foundation for the next-generation energy system.
  • To raise the robot technology to respond to new markets.

  • Continuous promotion of open innovation.
  • Acceleration of the business innovation activity.
  • Deepening of cooperation with start-ups.
15 Deeping Awareness of Kawasaki Group Business Conduct Guideline All of the officers and employees of the Group know the business conduct guideline very well as their ethical standard, and feel proud of complying with the codes.
  • The rate of training and the number of participants in the training courses (including reading the texts together at workplaces).
  • Distribution of the code of conduct and reading it together at workplaces.
16 Export Control
  • No serious violation of the law.
  • Building of the efficient and continuous export control system.
    • Export examination without omission.
    • Appropriate differentiated control.
    • Introduction of an efficient export control system.
  • Number of violations of law.
  • Number of participants in training courses.
  • No serious violation of the law.
  • Implementation of training programs
    • Officers
    • Company-wide training.
    • Education by the rank (newly appointed managerial position members, newly appointed managers).
    • Practical training (responsible departments, departments for responsible units, persons in charge).
    • Persons in charge of overseas businesses.
17 Information Security
(including personal information protection)
  • As a company that provides social infrastructure, it maintains and manages the response against cyberattacks or for protection of customer and product information at the security level ranked top in the world.
  • As the cyberattack now means continuous attack by organized criminals with sophisticated means, we will maintain the organizational function of strategic protection in the company to respond to such attacks.
  • With regard to the divulgation of information by employees either accidentally or intentionally, our primary response should be the maintenance of employees' morals and, regarding the protection by information systems, we will proceed with introduction of effective tools.
18 Customer Relationship Management
  • With the comprehensive technological capabilities, we will solve the customers' problems and create the value to open the future.
  • Construction of the system which enables feedback on a company-wide scale.
  • Increasing awareness of the CRM.
19 Labor Safety and Sanitation
  • No serious disaster in the entire Group.
  • Improvement of workplaces based on the group analysis of the stress check.
  • Number of occurrence of disasters at the parent and affiliates.
  • Diagram for judgment of work stress.
  • Prevention of labor-related disaster.
  • Promotion of safety and sanitation activities.
  • Reduction of comprehensive risk for health.
20 Labor Practices and Diversity
  • To provide employees with workplaces which are comfortable to work in and where it is worthwhile to work.
  • To properly assess employees' performance and to treat them properly and fairly.
  • To have cordial relationship with the labor union.
  • Appropriate business operation of personnel or labor management departments at companies within the Group.
  • To hold discussion with the labor union concerning extension of age limit of general employees and to revise the system (non-consolidated).
  • To support various types of employees for their activities (females, challenged people, employees of foreign nationality, etc.).
21 Human Resource Development To develop human resources, which are at the basis of corporate development, through the jobs, and to contribute to the growth of corporate business results.
  • Preparation for environment of the "place of leaning opportunities" and motivation to assume the positive attitude toward learning.
  • Further improvement of the measures for developing corporate managers.
  • Creation of organizational culture utilizing the operational goal sharing program GMK( Gyomu Mokuhyo Kyoyuka) "Changing forward".
  • Fostering and making good use of the global personnel.
  • Handing down of technology or skills such as the engineering capability, as well as fostering and making good use of the personnel having knowledge and experience, such as project managers.
22 Recycling- oriented Society
  • No wastes are produced in business activities.

  • Water resources are preserved and recycled to the full.
  • Percentage reduction of the basic unit of wastes produced.
  • Recycling rate.
  • Final disposal rate.
  • To reduce the basic unit of gross wastes produced by 1% or more from the eighth average.
  • Recycling rate of 98% or more.
  • Final disposal (reclamation) rate of 1% or less.
  • Systematic disposal of PCB wastes.
23 Society of Coexisting with nature
  • Business activities without emission of hazardous chemicals.

  • The biodiversity is respected in the business development.
  • Percentage reduction of major VOCs.
  • Percentage reduction of the basic unit of water used.
  • Activities of preservation of forests (number of implementations and the area).
  • To reduce the basic unit of major VOCs by 1% or more from the eighth average.
  • To reduce the dichloromethane by 1% or more from the preceding year.
  • To reduce the basic unit of water used by 1% or more from the preceding year.
  • Implementation of activities of preservation of forests.
24 Environmental Management
  • All the consolidated subsidiaries, whether domestic or overseas, form an EMS so that the entire Group is promoting the environmental management.

  • We abide by the laws and regulations concerning environment. The status of compliance is checked regularly.

  • We are contributing to the preservation of environment of local communities, by sending out environmental information internally and externally and holding interactive dialogs.
  • Percentage of ISO-certified offices.
  • Number of occurrence of violation of environment-related laws and regulations.
  • ISO 14001: Shift to the 2015 version.
  • Setting of targets common for the Group members to be considered.
25 Heightened Awareness as An Environmentally Friendly Brand
  • We are sending out information externally on a number of Kawasaki's green products in conformity with the ISO 14021.
  • Number of green products registered.
  • Degree of contribution by the green product sales.
  • Ranking by external assessment such as the CDP.
  • Registration of the Kawasaki – brand green products and sending out information on them.
  • Actions to be taken for the external assessment, third-party verification of environmental data, etc.
26 Social Contribution Activities
  • Through the social contribution activities:
    • We will contribute to the development of local communities where we have our activity base.
    • We will support the fostering of next-generation people who will hold the future technology.
    • We will contribute to the environmental preservation for the sustainable society.
  • Formulation of our policy for social contribution.

  • To develop the seventh handicraft workshop program (aircraft engines) and implement it. To consider the programs for fiscal year ending March 31, 2020 and after.

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