Climate Change Data

Environmental Metrics

ESG Focus Areas

• Cleanliness
• Health
• Safety

Social Achievements

• Implemented HOPES (High-ideal, Open-minded Personal affairs by various Evaluation System) HR policy to develop human resources, promoting systematic skills development through internal training programs.

Governance Achievements

• Strengthened corporate governance system to ensure transparency and soundness, clarifying responsibility and building a more efficient management organization.
• Appointed one outside director and two outside corporate auditors to provide independent oversight.

Climate Goals & Targets

Environmental Challenges

• Maintaining stable mask supply amid fluctuating demand due to COVID-19 and potential supply chain disruptions.
• Restrictions on client visits and face-to-face sales impacting sales of new products.
• Employee infection countermeasures and maintaining business operations during the pandemic.
• Soil and groundwater contamination from trichloroethylene at two facilities.
• Risks related to the spread of COVID-19 affecting business performance.

Mitigation Strategies

• Increased production capacity and built new facilities to ensure stable mask supply.
• Implemented new sales activities using online meetings and remote working.
• Implemented comprehensive infection control measures, including mask distribution, telework, and video conferencing.
• Continuing decontamination measures at affected facilities.
• Pursuing further business development in cleanliness and health sectors to mitigate reliance on mask sales.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• KOACH (open clean zone creator)
• Kagami-Naishi Ⅱ G (automatic endoscope washer/disinfector)
• Hi-Luck series disposable masks
• BL series Powered Air-Purifying Respirators (PAPR)
• IMADEZE® (copper-based lactate antibacterial agent)

Awards & Recognition

• Prime Minister’s Award (6th Monodzukuri Nippon Grand Awards) for KOACH

Environmental Metrics

ESG Focus Areas

• Cleanliness
• Health
• Safety

Environmental Achievements

• Implemented measures to clean up soil and groundwater contamination caused by trichloroethylene at two laboratories and Techno-Yards.

Social Achievements

• Operated HOPES (High-ideal, Open-minded Personal affairs by various Evaluation System) HR policy for over 20 years to develop human resources.
• Implemented internal training programs to improve employee’s professional knowledge and skills.

Governance Achievements

• Established a corporate governance system with clarified responsibility and is working on maintaining a sound corporate entity that can respond quickly to management environment changes while keeping transparency and fairness.
• Appointed one outside director and two outside corporate auditors who supervise the execution of duties by directors from an objective point of view outside the Company.

Climate Goals & Targets

Environmental Challenges

• Uncertainty in the business environment due to rapid and drastic changes at home and abroad.
• Potential for research and development to not lead to new products or earnings growth.
• Risk of third-party imitation of products.
• Potential for product non-compliance with laws and regulations.
• Risk of product defects or failures.
• Impact on production from disasters, infectious diseases, etc.
• Environmental issues related to soil and groundwater contamination.
• Information security risks.
• Limitations of internal control systems.
• Risks associated with overseas subsidiaries (SIAM KOKEN LTD.) due to political, social, or economic factors.
• Impact of COVID-19 on business performance.
• Impact of the Ukrainian situation on raw material prices and geopolitical risks.

Mitigation Strategies

• Establishing specific targets and action plans, implementing them steadily, and modifying them flexibly to respond to changing business environments.
• Implementing a matrix-based R&D structure to minimize development risks.
• Careful management of intellectual property rights.
• Strengthening compliance systems and internal controls.
• Maintaining and strengthening a thorough quality assurance and management system, including reliability testing and an independent Quality Assurance Office.
• Implementing measures to mitigate risks from disasters and infectious diseases, including earthquake risk surveys, stockpile of masks, and infection prevention measures.
• Continuing decontamination measures for soil and groundwater.
• Implementing facility and organizational-level information security measures, including network management, security education, and third-party security checks.
• Constant evaluation and review to strengthen internal control systems.
• Increasing domestic production facilities for disposable dust masks to reduce reliance on overseas production.
• Continuous implementation of anti-infection measures for employees.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• KOACH open clean zone creator
• High-performance anti-infection mask “Model 1180MD”
• Sampling Fit Test Adapter

Awards & Recognition

• Prime Minister’s Award (6th Monodzukuri Nippon Grand Awards) for KOACH

Environmental Metrics

ESG Focus Areas

• Clean
• Health
• Safety
• Human Resources Development
• Technological Development

Environmental Achievements

• Opened a new showroom in Kumamoto to strengthen sales activities in the Kyushu region, a hub for semiconductor-related companies.
• Developed and implemented the open clean system "KOACH", which contributes to solving various challenges in the clean market.

Social Achievements

• Continued operation of the "Koken Total Personnel System HOPES" for over 20 years, fostering human resource development.
• Implemented a Meister system to evaluate technical expertise and hold monthly research presentations.
• Expanded sales of the "Hi-Rack" series of disposable dust masks and provided support for businesses adapting to new welding regulations.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decreased demand for medical masks compared to the previous year, although it exceeded initial plans due to the 9th and 10th waves of COVID-19 infections.
• Impact of the silicon cycle recession on the environmental business, leading to postponements of large-scale orders for the KOACH system.
• Rising raw material and logistics costs.
• Changes in chemical substance management methods in workplaces starting in April 2024.

Mitigation Strategies

• Maintaining a flexible production system to ensure stable supply of medical masks.
• Continuing sales activities to secure future projects despite current market conditions.
• Cost reduction measures, including improvements in manufacturing technology and expense reduction.
• Providing timely and appropriate products and services to meet user expectations regarding the new chemical substance management regulations.
• Launching a dedicated website for chemical substance masks to provide information on appropriate selection, use, and maintenance.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• KOACH open clean system

Awards & Recognition

• Not disclosed