KAGA ELECTRONICS CO.,LTD.

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.

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.

With regard to the development of global human resources, the EMS Business Division serves as a hub from which employees are dispatched to overseas assignments. Newly hired graduates are assigned to the EMS Business Division, and, once they have two to three years of experience in executing the business scheme in Japan and on overseas business trips under their belts, they are dispatched. We also assign salespersons who joined the Group as mid-career hires to the EMS Business Division and then dispatch them to overseas destinations after they have amassed frontline experience for several months. Meanwhile, KAGA MICRO SOLUTION, a manufacturing subsidiary, recruits mid-career hires specialized in manufacturing, seconding them to the Production Center of the EMS Business Division once they gain proficiency. Following this secondment, they are transferred to overseas bases. Going forward, we aim to nurture human resources capable of handling overseas production management. To this end, we plan to promote similar initiatives, for example, assigning new recruits to KAGA EMS TOWADA CO., LTD. for stints at domestic factories such as Kyokuto Electric Co., Ltd. prior to being sent abroad.
To leverage the capabilities of foreign national employees, each year KAGA EMS TOWADA accepts technical trainees from Indonesia and Vietnam, taking advantage of a government-sponsored foreign technical intern training program. These trainees are given the option of either returning to their home countries after a three-year training period or obtaining a “specific skill” certification and continuing their career at KAGA EMS TOWADA. Meanwhile, Kyokuto Electric has several foreign engineers on its rolls, and in addition to quality-control work and interpretation, is actively involved in the training of its technical interns.
In terms of the promotion of foreign employees, in April 2023, Zhen Zhou Zhu, China Supervisor, was appointed as the Company’s first foreign executive officer.

In terms of women’s empowerment, we are making steady progress toward achieving the goals set forth in our Medium- to Long-Term Sustainability Management Plan to increase the consolidated ratio of women in managerial positions to 15% by 2024 and 17% by 2029. However, when looking at KAGA ELECTRONICS on a non-consolidated basis, along with its domestic Group companies, this ratio is not steadily growing. With this in mind, we have formulated targets aligned with the situation of each Group company. Furthermore, we are assiduously promoting initiatives to raise the ratio of women newly hired as career track employees to 30%. We recognize a need to focus on the nurturing of our female employees at a robust pace at KAGA ELECTRONICS and other domestic companies.
As an investment in human capital, in addition to a sharp increase in the number of male employees utilizing the new childcare leave system, the Company also implemented a Groupwide wage increase in March 2024.

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, or 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. Furthermore, to encourage male employees to utilize childcare leave, a new specialized childcare leave system was established on April 1, 2023. Through such initiatives as these, we aim to strike a good work-life balance and thus realize a safer work environment for employees.

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.

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. It is supervised by the Board of Directors under the Group Management Headquarters Meeting, and a system is in place for reporting the content of each meeting. Under the chairperson, the General Manager of the Personnel Department and the Personnel Team, industrial physicians, public health nurses, the Diversity Promotion Committee, and the Safety and Health Committee work together to set targets in consideration of annual health issues and implement each measure.

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.

＜Quantitative Targets＞

[Glucose metabolism] HbA1c　NGSP

Employees with a result of 10.0 or above

⇒100% attendance at hospital

*HbA1c　10.0％ or above (NGSP) represents the level at which restrictions become necessary to ensure stable employment due to the high risk of brain and heart disease and sudden death.

[Blood pressure]

Employees with a systolic blood pressure of 180 or above and/or diastolic blood pressure of 110 or above

⇒100% attendance at hospital

*Systolic blood pressure of 180 or above and/or diastolic blood pressure of 110 or above (Grade 3 hypertension) represents the level at which restrictions become necessary to ensure stable employment due to the high risk of brain and heart disease and sudden death.

Increase the proportion of employees receiving specific health guidance for the first time

10.5%　⇒　18% or above

*Specific health guidance is a form of health support provided to persons considered at high risk of lifestyle diseases based on the results of specific diagnosis and who are expected to benefit significantly from lifestyle improvements. At the initial consultation, a doctor, public health nurse, dietitian, or other health professional provides patients with support in lifestyle improvement based on factors such as each individual’s state of health and living environment.

To address our targets for health management, we will work with industrial physicians and public health nurses to enhance our systems to promote occupational health while also collaborating with health insurance organizations to encourage employees to improve their own health.

*Please see here for specific data on health management.

With the aim of maintaining and improving the health of employees as well as providing them with a better work-life balance, in addition to resort facilities in Japan and overseas and contract golf courses, the Kaga Electronics Group also owns company retreat centers in Hakone, Karuizawa, Atami, and Kyoto (Miyazu City) as well as two cabin cruiser yachts (Yokohama and Kyoto) as company-owned welfare facilities. These facilities are widely used, with an average utilization rate of 66.5%*. We are making efforts to create a comfortable working environment to help enrich the recreational environment for employees.
Moreover, in August 2023, we opened a training room for employees in the Kaga Electronics Head Office building that boasts the latest in AI-equipped machines that help ensure optimal training tailored to each employee’s physical characteristics through the use of electronic tags, and, in June 2024, we opened a similar training room in the Head Office Building Annex. We will continue to implement various health promotion initiatives so that all of our employees can voluntarily maintain and improve their health.

* Utilization rate reflecting frequency of facility occupancy on days preceding Sundays or national holidays from April 2023 to March 2024.

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 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
[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.

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.

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.