SustainabilitySUSTAINABILITY

Social

Respecting Human Rights

The Kaga Electronics Group respects each person’s individuality and basic human rights, and treats all people fairly, without discrimination. We provide a healthy workplace where people can work in safety. We eliminate forced labor and child labor, and respect basic human rights and the basic rights of workers.



Human Resource Management / Diversity

Implementing the idea that “everyone is a corporate manager”
Human resource strategy/Diversity management

As our business activities become more global and the market environment undergoes abrupt change, diversity and taking on challenges are keys to driving sustainable growth.This is because diversity enables us to look at risk as an opportunity, and when we take on challenges we can take full advantage of these opportunities. To make this a reality, the Kaga Electronics Group promotes diversity management in terms of making effective use of diversity in human resources and in work style. At the same time, we respect our human resources who continue to take on challenges and see each person as a corporate manager. With this in mind, we will keep protecting our corporate culture of tolerating failure as a consequence of tackling challenges.

Pursuing a comfortable working environment
Employee education, training and income compensation programs

At the Kaga Electronics Group, we support the career development of employees through training for new recruits, annual training, rank-based training and other forms of education, as well as by providing assistance with correspondence courses.
Every year, we grant a total of six days of paid “refresh leave,” which is separate from annual paid leave, to all employees. We also instituted a sick leave program for those who develop one of three specified types of serious disease (cancer, cerebral stroke and myocardial infarction) to help them secure their income during their hospitalization and absence from work. Specifically, employee entitlement for paid sick leave is accumulated in step with years of service, for a maximum of 20 days. Employees are also allowed to take hourly paid leave. Through such initiatives as these, we aim to strike a good work-life balance for a safer work environment for employees.
Also, in the course of responding to the COVID-19 pandemic, we placed the utmost priority on ensuring safety and security for our employees at home and abroad.

Efforts regarding Health Management

1. Health Management Policy

Based on our corporate philosophy, “Everything we do is for our customers,” we aim to be the No. 1 company in the industry in Japan and to become a competitive world-class company.
To this end, it is essential that each and every one of our employees is healthy in mind and body and that we are a team of professionals with integrity and high professional ethics.
We also believe that an energetic corporate culture based on a work environment that allows for smooth communication, job satisfaction, and the health of employees and their families is extremely important for the sustainable growth of a company and that the value of our existence can be enhanced by continuing to maintain and improve the health of our employees.
We will continue to implement various health promotion initiatives to encourage all employees to pursue health maintenance and improvement of their own volition.


2. Promotion System

The Company has organized the "Health Management Promotion Committee" and is implementing health management initiatives. The committee is chaired by the Senior Executive Officer Head of the Administration Headquarters,and includes the General Manager of the Personnel Department and the Personnel Team, industrial physicians, the Diversity Promotion Committee, the Reform of Working Styles and Working Environments Subcommittee,and the Safety and Health Committee. The Committee sets targets in consideration of annual health issues and implements each measure.


  • The Diversity Promotion Committee is a Committee that discusses and develops plans for promoting diversity, reforming working styles with a view to the post-COVID-19 era, and health management.
  • The Reform of Working Styles and Working Environments Subcommittee is designed to increase the productivity of each and every employee, while aiming to achieve a work–life balance by adopting flexible working styles.

Health Issues

Prevention of mental health disorders
We will implement measures for the mental health of employees so that they can maintain their mental health and continue to work with job satisfaction and vigor.
Initiatives for the prevention of lifestyle-related diseases and for the early detection of diseases
To understand the prevalence of various risks related to obesity, high blood pressure, and hyperglycemia, which are lifestyle-related diseases, we will work to further improve the company’s welfare system for the prevention of lifestyle-related diseases and for the early detection of cancer and other diseases.
Promotion of work–life balance
We will strive to promote a work–life balance so that employees can maintain their mental and physical health and can spend quality time with their families and friends.


Utilization of welfare facilities

With the aim of supporting the maintenance and improvement of employee health as well as betterment of work-life balance, the Kaga Electronics Group has established its own welfare facilities. These include company villas in Hakone, Karuizawa, Atami and Miyazu (Kyoto). Moreover, the Company owns two cruiser boats (Yokohama and Kyoto). In addition, the Company provides employees with access to resorts in Japan and abroad, contract golf courses and other facilities. The company villa utilization rate is currently 56.7%,* suggesting that they are used by a broad range of employees. Going forward, we will continuously strive to create a comfortable working environment by enhancing the content of Company-assisted options for recreational destinations.

* Utilization rate reflecting frequency of facility occupancy on days preceding Sundays or national holidays from April 2021 to March 2022.

A Company-owned cruiser boat

Green Procurement Guidelines

Purpose of these Green Procurement Guidelines

Kaga Electronics (the “Company”) has established environmental policies and practices management that benefits the environment. We promote green procurement as an important part of this. These Green Procurement Guidelines (the “Guidelines”) set out green procurement standards, which constitute Kaga Electronics’ basic stance on green procurement. The Guidelines’ purpose is to ensure compliance with environmental laws and regulations and mitigate environmental impact by clearly and concretely defining what we ask of our suppliers of components, materials, units, products, secondary materials, and more (“supplies”).

The Company’s Stance on Green Procurement

The Company considers our basic principle of green procurement to be the procurement of supplies with a small environmental impact from suppliers that actively promote environmental conservation.
[1 Priority Procurement]
As part of the initiatives we are promoting under management that benefits the environment, the Company has obtained ISO 14001 certification and puts it into practice. When procuring supplies, we prioritize suppliers who actively implement initiatives for environmental conservation.

The Company’s Management Standards for Chemical Substances in Products

The Company’s Management Standards for Chemical Substances in Products
[1 Scope of Application]
The Guidelines apply to all components and materials (components, materials, units, products (including OEM/ODM products), and secondary materials) procured by the Company for use in electric and electronic products. Additionally, in the case of supplies outside of electric and electronic products (toys, medical devices, automotive products, etc.), cases when separate standards are presented by clients of the Company, etc., the Company may request measures that correspond to management standards that differ from the content of the Guidelines.

[2 Substances Prohibited from Use in Supplies (Prohibited Substances)]
Prohibited substances are substances whose use is prohibited, in principle. The Company’s prohibited substances are equivalent to the standards of International Standard IEC 62474 (*1), and consist of chemical substances whose use is prohibited or restricted under laws and regulations in Japan and overseas. We have presented our standards for the management of prohibited substances in Appendix 1 of the “Standard for the Management of Chemical Substances (Version 3.0)” (the “Standards”), so please ensure that supplies to the Company satisfy the management standards set forth in Appendix 1; provided, however, that the use of substances stipulated in the “RoHS Directive of the EU (2011/65/EU)” is possible for applications where it is stipulated that the directive does not apply. (See Appendix 5 of the Standards.) In cases where there are separate requirements from clients of the Company, etc., the Company may request measures that correspond to management standards that differ from the content of the Guidelines.

[3 Substances for which Information Concerning their Content in Supplies is to be Reported (Substances Subject to Content Reporting)]
The intentional use of substances subject to content reporting is not restricted, but in cases when they are contained in concentrations that exceed standard values, the parts that use these substances and the amount contained should be ascertained, and they should also be appropriately managed from the perspective of considerations when products are recycled and the environmental impact at the time of disposal. We have indicated the minimum substances subject to reporting in Appendix 2 of the Standards. If substances subject to reporting are contained in supplies, please report content information, such as the amount contained, parts that use substances, etc., in a “chemSHERPA – AI File” (*2), etc.

Requests to Suppliers

In order to promote green procurement, Kaga Electronics requests the following from suppliers, who are our business partners: (1) “Submission of receipts, etc., and conclusion of agreements to the effect that suppliers will comply with the Guidelines,” (2) “Creation and assessment of systems for managing chemical substances in products by suppliers,” (3) “Conclusion of agreements to ensure the environmental quality of supplies,” and (4) “Submission of documents related to information on chemical substances in supplies.” We request that our suppliers understand and cooperate with the intent of these requests. In cases where there are separate requirements from clients of the Company, the Company may request measures that correspond to requirements from clients.

[1 Submission of Receipts, etc., and Conclusion of Agreements to the Effect that Suppliers will Comply with the Guidelines]
The Company requests the submission of receipts, etc., after receiving the Guidelines of the Company, to confirm the agreement to comply with the content of the Guidelines. In order to ensure the environmental quality of items procured, the Company may also request the conclusion of agreements, memoranda, statements of agreement, etc., concerning chemical substances in products. (This content may also be included in basic agreements, business agreements, etc.) When there are separate clauses related to chemical substances in products, the separate specifications shall be prioritized. The Company shall take due care with regard to the confidentiality of information submitted.

[2 Creation and Assessment of Systems for Managing Chemical Substances in Products]
The Company requires that suppliers create systems for managing chemical substances in products. In order to confirm the creation of these systems, the Company performs assessments of suppliers’ systems for managing chemical substances in products. In principle, the Company requests that the management of chemical substances in products supplied conforms with the “Guidelines for the Management of Chemicals in Products” issued by JAMP (*4). The Company assesses management systems based on the results of self-audits conducted by suppliers or audits conducted by the Company, using materials such as the “Guidelines for the Management of Chemicals in Products (Edition 4.0) Annex Check Sheet (Version 4.01)” issued by JAMP.

[3 Submission of Documents Related to Information on Chemical Substances in Supplies]
The Company requests that suppliers survey the chemical substances in supplies and submit the following documents: ○ Documents whose submission is required: ・ Statement proving the non-use of prohibited substances; ・ Information on chemical substances in products (submitted via chemSHERPA – AI File, etc.); in principle, the Company requests that suppliers provide information concerning all chemical substances content. ○ Documents whose submission may be required depending on the type of supplies and necessity: ・ ICP analysis data (substances restricted under the RoHS Directive); ・ MSDS, MSDS plus, component tables, mill sheets; ・ Other, documents required by the Company’s clients, etc.

[4 Acceptance Management]
When accepting supplies, please confirm and record that the supplies satisfy the management standards of the Company. It is also important to clarify the method of confirmation at the time of acceptance. (Evaluation method, recording method for evaluation results, identification management method, etc.)

[5 Shipping Management]
Before shipping supplies, please check that the standards for managing chemical substances in the products to be shipped have been satisfied, and record the results of this check. As part of the acceptance and manufacturing process, please reconfirm that all predetermined checks have been performed, and manage product warehouses to ensure there are no mistaken shipments or contamination.

[6 Change Management]
If there are any changes to the following information on chemical substances in supplies, please immediately notify the Company, and make the changes after first acquiring information concerning chemical substances in products and checking compliance with management standards, submitting this information to the Company, and obtaining permission from the Company in advance. (1) Changes to the raw materials or components used; (2) Changes to the suppliers of raw materials or components used; (3) Changes to manufacturing locations or contracted manufacturers; (4) Changes to manufacturing methods; and (5) Other changes that may impact the information on chemical substances content.

[7 Management of Non-conformance]
In the event of any non-conformance in the information on chemical substances in supplies, the Company requests that suppliers promptly notify the Company and related parties, clarify any non-conforming lots, suspend shipments and prevent distribution of these lots, and perform the following management of non-conforming items: (1) Immediately notify the Company of any non-conformities; (2) Identify, separate, suspend shipments, and prevent distribution of non-conforming items (including lot tracing); (3) Assess non-conforming items and formulate measures for rectification; (4) Formulate measures to prevent similar incidents in advance; and (5) Submit and retain related records (reports).

[8 Traceability]
In order to perform management in a way that ensures the following items, etc., can be traced from products shipped, please create records, such as lot management record slips and production record slips, and manage the history of products. (1) Constituent components and information on chemical substances in those products; (2) Manufacturing dates and manufacturing lot numbers; and (3) Manufacturing plants and contracted external parties.

[9 Document and Record Management]
Please systematically manage requirements from the Company related to the management of chemical substances content, as well as information on chemical substances content and management records obtained from suppliers, by organizing related files or electronic media and creating lists of documents. In principle, please retain the latest version of requirements from the Company, and ensure that they are available for viewing by related departments, through their distribution, the internal intranet, etc. The retention period for documents is 10 years.
* Under the revised RoHS Directive (Directive 2011/65/EU), documents shall be retained for 10 years.



Quality Management

■ Quality control system

The Kaga Electronics Group established the Production Center in its EMS Business Division, thus enabling a system of quality control that centers on KAGA (SHENZHEN) ELECTRONICS CO., LTD., its flagship base for overseas production, and KAGA EMS TOWADA CO., LTD., which boasts a wealth of experience in the manufacture of in-vehicle related products. At the Center, we manage the entire Group’s resources as cross-functional capabilities in such areas as production technology and quality control and promote the optimal distribution of resources and the strengthening of technological competencies on a global basis. The Center also liaises with production sites in China and Japan as well as countries in the ASEAN region, Europe and North America to advance the standardization of production facilities, IT systems and operational processes, and the sharing of information, for example, to prevent the recurrence of issues. Through standardization, the aim is to ensure identical standards, quality and customer service. In addition, regular exchange meetings are held to reinforce quality on a Groupwide basis.

The remote verification of inspection machines involving an active exchange of ideas among attendees

■Efforts to enhance quality

The Company’s Engineering Department controls the technological resources of the entire Group, from planning and development to design, manufacturing and quality assurance, and works to optimize these resources, strengthen technological
capabilities and expand business across the organization. The Quality Assurance Department, one of the bodies of the Engineering Department, seeks to enhance development quality and manages safety standards throughout the Group. This department works with other departments responsible for quality within the Group, depending on the circumstances, in order to resolve issues.

Prototype evaluation using a measurement device

Status of ISO9001 certification

KAGA ELECTRONICS and the following Group companies have attained ISO9000 series certification, an international standard for qualitymanagement.
The Company is striving to further enhance customer satisfaction through the continuous improvement of its quality management system.


Japan:KAGA ELECTRONICS CO., LTD., KAGA TECH CO., LTD., AD DEVICE CO., LTD., KAGA MICRO SOLUTION CO., LTD., KAGA FEI Co., Ltd., NV DEVICES CO., LTD., KAGA EMS TOWADA CO., LTD., Kyokuto Electric Co., Ltd., KAGA TECHNO SERVICE CO., LTD.

Overseas:KAGA (H.K.) ELECTRONICS LIMITED, KAGA (SHENZHEN) ELECTRONICS LTD., KAGA COMPONENTS (MALAYSIA) SDN.BHD., KAGA ELECTRONICS (THAILAND) COMPANY LIMITED, KD TEC s.r.o., SUZHOU TAXAN KAGA TRADING CO., LTD., KAGA TECHNOLOGY (SUZHOU) ELECTRONICS CO., LTD., KAGA ELECTRONICS INDONESIA, PT, HUBEI KAGA ELECTRONICS LIMITED, TAXAN MEXICO, S.A. DE C.V., KAGA ELECTRONICS (VIETNAM) CO., LTD., KD TEC TURKEY ELECTRONIK SANAYI VE TICARET LIMITED SIRKETI, KAGA ELECTRONICS INDIA PRIVATE LIMITED, KAGA FEI AMERICA, Inc., KAGA FEI EUROPE GmbH




A series of businesses that resolve social issues

The Kaga Electronics Group is promoting the creation of new businesses based on a desire to resolve social issues in a range of fields, including daycare, welfare and nursing care, to drive sustainable growth. Through our businesses, we also aim to contribute to the achievement of the Sustainable Development Goals (SDGs).

The IoT and urban development

Alongside innovation in artificial intelligence (AI), the Internet of Things (IoT) and other forms of digital technology, the world is becoming increasingly digitalized in an effort to further enrich people’s lives. KAGA ELECTRONICS, through investment in Secual, inc., which develops and manufactures home security products, is promoting smarter homes and towns based on the introduction of home security and town security that utilizes IoT devices such as security sensors and AI cameras. We aim to contribute to more comfortable urban settings by producing sensors and gateways, and by encouraging the use of home security systems.

IT and education

The nurturing of outstanding IT/digital human resources has become a critical social issue the world over. In Japan, programming is now a mandatory part of the curriculum in elementary schools, and a key challenge in the corporate sector is the development of personnel that can lead the next generation. KAGA ELECTRONICS has invested in Life is Tech, Inc., which is engaged in education for next-generation IT/digital human resources capable of changing the world. We work together with Life is Tech on nurturing such human resources, in particular through IT and programming courses for junior and senior high school students. In addition, the Kaga Electronics Group handles IT-related products for schools and other educational institutions, supporting education for the children of tomorrow in collaboration with Life is Tech.

Medical devices and QOL

The medical care and welfare sectors are becoming increasingly overwhelmed as more and more people live to 100 within a super-aging society. In addition to treatment, even greater emphasis needs to be placed on prevention and care while medical and welfare systems strain to keep up. With this in mind, KAGA ELECTRONICS has invested in Neuroceuticals Inc., which develops medical devices, obtains regulatory approval for the products and handles their export and sale. This enables us to explore needs for equipment capable of efficient diagnosis and treatment as well as equipment that can enhance patients’ quality of life (QOL). As an example, we are planning to release a mobile computed tomography (CT) scanner. Because it is mobile, it can be delivered anywhere in Japan, making it possible to provide medical services even in the event of a disaster. Going forward, both companies will make mutual use of the extensive customer network of Neuroceuticals and the global components procurement network of KAGA ELECTRONICS, and further advance collaboration in such areas as device manufacture.

Effective utilization of “things”

People’s lives are overflowing with a plethora of different “things,” and a pervasive topic today is how to efficiently and effectively use the resources the world has to offer. We have invested in Peace Tec Lab, Inc., which mainly provides services based in the sharing economy. The company’s unique model includes a luggage-free travel service in which people rent the most popular consumer electronics and travel items locally for the duration of their stay and a subscription-type service for rent in apartment complexes. By supporting this company, we aim to realize a less wasteful, more sustainable society.

Biomass power generation and regional contribution

A biomass power plant project is being planned for Fukuoka Prefecture that uses the ORC turbine system*, and KAGA DEVICES CO., LTD., a Group company, is supporting the procurement of construction materials for this project. Since the project uses forest wood residue such as thinned wood, branches, leaves and bark as fuel, it not only helps to regenerate mountain areas that have been devastated but also prevents problems caused by driftwood. In addition, any waste heat generated in the process is used to heat water for nearby farmers and for environmentally controlled hydroponics. These and other measures raise expectations of more harmonious coexistence and mutual prosperity with the local community. The Kaga Electronics Group is dedicated to using its global procurement capabilities and contributing to technological advancement, the environment and the community in order to revitalize rural and mountain village areas.
* ORC (Organic Rankine Cycle) turbine system: Unlike conventional steam turbines that use water, this technology employs organic media such as silicon oil to generate power. As a result, steam can be generated at a lower temperature than when using water (approximately 50 degrees Celsius), making power generation more efficient.