THK CSR Report 2019
THK CSR Report 2019 CSR Policy
In 1971, THK introduced a machine component called the Linear Motion System to the world, becoming the first company ever to achieve linear motion through rolling motion. Now, we believe it is our corporate social responsibility to use our work to contribute to society, earning the trust of our stakeholders as we follow our corporate philosophy and achieve the creation of an affluent society. We endeavor to improve our long-term corporate value with our CSR policy, which is founded on our Corporate Philosophy that represents our entrepre- neurial spirit, our Action Charter that serves as a guide for our actions, and the Corporate Basic Policies that we must follow as we perform our duties.
Providing innovative products to the world and generating new trends to contribute to the creation of an af uent society
1. Creating value and contributing to Corporate society Philosophy 2. Being customer-oriented 3. Compliance with laws and regulations Corporate Basic Policies Principles of behavior set forth for the THK Group to shoulder social responsi- Action Charter bility based on high ethical standards to create a sustainable society CSR Policy
2 THK CSR Report 2019 Contents THK CSR Report 2019
2 CSR Policy Involvement in Society 3 Contents 20 Together with Our Customers 4 Message from the CEO 21 In Our Customers’ Words 6 Company Overview Lessons in Customer-Oriented Sales from THK 8 THK’s Stance on the Relationship Between Social 22 Together with Our Suppliers Challenges and CSR 23 In Our Customers’ Words 10 The Materiality of CSR and the Promotion of SDGs Customer Award-Winning Engineering Solutions and High-Quality Products Special Features 24 Quality Assurance Structure 12 Product for Earthquakes 25 Together with Our Shareholders Maintaining Hospital Functions to Provide Medicine Health and Safety with Compassion 26 28 Supporting Development 13 Product for Preventing Global Warming Local Communities THK’s Ball Splines Reduce Horizontal Vibrations, 30 Proving Essential for Wind Turbines That Rotate in Light Breezes Harmony with the Environment THK Group Business Activity Environmental Impact 14 Product for Disasters 32 Overview Advancing Academic Research to Help Society 34 Promoting Environmental Management 15 High-Quality Product Featuring THK’s Core Technology Conserving Energy and Preventing Global Warming THK Products Are Essential for World-Class, 35 High-Quality Analyzers 36 Conserving Resources and Achieving Zero Emissions 37 Managing Hazardous Materials and Green Distribution Management Structure 16 Corporate Governance 38 Third Party Opinion 17 Internal Audit, Internal Controls, and Information Security 39 Editor’s Note 18 Compliance Structure and Security Export Control 19 Risk Management Committee and BCP
Reporting Period This report covers activities performed during and around the period of January 1, 2018, to December 31, 2018. The time period included in specific data is noted in each section. Scope This report covers THK CO., LTD., and its consolidated and unconsolidated subsidiaries. The scope of data in the environmental section is noted in that section. References This report was prepared in accordance with the GRI Standards and the Ministry of the Environment’s “Environmental Reporting Guidelines” (2018).
How THK Connects with Stakeholders Stakeholders Examples of involvement Frequency Exhibitions in various countries Japan: 21, Outside of Japan: 34 Customers E-mail newsletters As necessary General Meeting of Shareholders Annually Shareholders and investors Financial results briefing Semiannually IR information e-mailed to investors As necessary Business partners General meeting: annually, THK Association (subcontractors and suppliers) Branch meetings: periodically Relaying various policies and messages from the CEO As necessary Company trips and employee and family events Biannually Employees Recognition of continuous service Annually Recognition of Kaizen proposals Annually Training programs As necessary Social insurance reporting and tax returns As necessary Government administrators Participating in seminars As necessary Donation drives As necessary Local communities Employee volunteer work As necessary Plant tours As necessary
Page 2: Newly expanded Yamagata plant. From front left: Factory 4, Factory 6, Factory 5. THK CSR Report 2019 3 Message from the CEO
Working to Achieve the Creation of an Affluent Society
Akihiro Teramachi THK CO., LTD. President and CEO
A word to those affected by natural Strategies supporting our CSR Policy disasters
2018 was a year beset by disasters on a scale rarely seen. In an aim to increase our long-term corporate value and Japan experienced the northern Osaka earthquake in June, create an affluent society through our business activities, the heavy rainfalls in western Japan in July, and the Hokkaido our CSR Policy is founded on our Corporate Philosophy, Eastern Iburi earthquake—as well as continuous earth- Corporate Basic Policies, and Action Charter. quakes considered to be its aftershocks—in September. In an effort to fulfill our corporate philosophy of contribut- Looking at the rest of the world, precious lives were lost, and ing to the creation of an affluent society, we have identified many more people were forced to evacuate, during the West full-scale globalization, the development of new business Java earthquake in January, the Papua New Guinea earth- areas, and a change in business style as cornerstones of quake in February, and the massive hurricanes that struck our growth strategy to continuously develop products cen- the American East Coast in September and the Southeast tered around our mainstay LM (Linear Motion) Guide, create in October. I would like to express my heartfelt sympathy for new markets, and offer a steady supply of products to every those who lost their lives and for their families. My thoughts region. are with those who are still living in emergency accommoda- The market has grown due to developments in FA (Factory tions, and I wish for their good health. Automation) in China and other emerging countries, and On the other hand, as always, I am moved by the dedica- under our full-scale globalization strategy, we have pro- tion of volunteers who cross borders to aid disaster victims. moted the development of an integrated production and I respect the compassion of people who are able to think sales structure close to centers of demand in four regions: of others first even in the face of tragedy. Seeing everyone Japan, the Americas, Europe, and Asia. Specifically, on the supporting each other, I am confident that the areas affected sales side, we have launched the Omni THK e-commerce by disaster will recover and continue to grow. website, which enables customers to easily select and order products anytime, anywhere. We have bolstered our efficient sales structure around the world, expanding this service to cover China, Brazil, and parts of Japan in addition to the ASEAN region. On the production side, we have continued to promote robotization and automation at our production
4 THK CSR Report 2019 Developing products for the next generation facilities in every region, and we have completed new expan- THK used rotary motion to achieve linear motion in machines, sions to our plants in Yamagata and Vietnam. Furthermore, which was said to be impossible. As a company focused on we have begun construction on a new factory in India, which creation and development, we have used that technology is projected to experience a medium- to long-term growth to create products with many applications that meet the in demand, thereby further strengthening our production needs of our customers and the market. One example is structure. our seismic isolation system, which minimizes damage from Under our development of new business areas strat- major earthquakes and protects lives, property, and import- egy, with our R&D divisions in Japan, China, and our ant information systems. In the field of renewable energy, THK RHYTHM AUTOMOTIVE consolidated subsidiary in which aims to prevent global warming, we have developed Germany, we promote the development of new products a low-torque shaft unit that enables wind turbines to activate that will satisfy the exact needs of customers in fields more during light breezes. Robots—and components for those closely related to consumer goods. robots—are being presented as a solution that addresses In terms of the IoT, we are preparing our OMNI edge ser- the predicted decline in the working age population and can vice, which has networking capabilities, including a system perform dangerous tasks in place of people. I believe our that can diagnose LM Guide failures and lubrication status core technology products and other next-generation prod- as well as detect ball screw preload. ucts will greatly contribute to the achievement of the SDGs. Under our change in business style strategy, we are There are probably still many domains where our products making full use of the latest technologies such as AI and can help society that even we have not yet realized. Through robots in a variety of different ways, thereby expanding our our business, we will continue to strengthen our corporate business domains. value and improve our interactive communication with all of our stakeholders. To create an affluent society—a sustain- able society—, we will unwaveringly follow our corporate philosophy as we conduct our business.
THK CSR Report 2019 5 THK CO., LTD., manufactures and supplies vital machine components around the world. THK products help to convert slippage into controlled rotary motion, enabling parts of machinery to move smoothly, Company easily, and precisely with linear motion. As a company focused on creation and development, we have committed ourselves to developing a variety of products, including the Linear Motion (LM) Guide, since our company’s establishment in 1971. To fulfill our responsibility of providing these products to the Overview world, we have established an integrated production and sales structure of 118 sales offices and 35 pro- duction facilities located close to centers of demand in order to produce and sell locally in four regions: Japan, the Americas, Europe, and Asia.
Net China sales ¥49.2 billion Sales offices 31 RECENT EVENTS ■ China International Industry Fair exhibition (China) Production facilities 6 September 2018 Development bases 1 ■ Omni THK launch May 2018 ■ THK RHYTHM (CHANGZHOU) construction began Management companies 1 December 2018 ISO 9001 certified 4 facilities ISO/TS 16949 certified 1 facility IATF 16949 certified 1 facility Employees （Male: 2,369, Female: 825） Intellectual property （48 published, 264 registered）
Net Europe sales ¥56.9 billion
Sales offices 12（Germany: 2, France: 1, UK: 1, Netherlands: 1, Italy: 1, Turkey: 1, Sweden: 1, Russia: 1, Austria: 1, Spain: 1, Czech Republic: 1） Asia Production facilities （Germany: 1, France: 1, Ireland: 1, 4 Net Czech Republic: 1） and Other sales ¥28.7 billion Development bases 1（Germany: 1） Sales offices Management companies 1（Netherlands: 1） 23（Taiwan: 3, Singapore: 1, South Korea: 13, Thailand: 1, India: 5） Financial subsidiary companies 2（Ireland: 2） Production facilities 7（Thailand: 1, South Korea: 4, ISO 9001 certified 2 facilities Vietnam: 1, Malaysia: 1） ISO/TS 16949 certified 1 facility ISO 9001 certified 5 facilities IATF 16949 certified 2 facilities ISO/TS 16949 certified 2 facilities Employees （Male: 1,546, Female: 524） Employees （Male: 470, Female: 234） Intellectual property （189 published, 402 registered） Intellectual property （123 published, 438 registered）
RECENT EVENTS RECENT EVENTS ■ HANNOVER MESSE 2018 exhibition (Germany) April 2018 ■ METALEX exhibition (Thailand) November 2018 ■ Inno Trans exhibition (Germany) September 2018 ■ THK MANUFACTURING OF VIETNAM expansion completed November 2018 ■ THK India Sri City Plant construction began January 2019
Net Sales Operating Income/Operating Margin Net Income Attributable to Shareholders of THK CO., LTD./Net Income Margin 日本 米州 欧州 中国 アジア他 (Millions of yen) Japan The Americas Europe China Asia and Other (Millions of yen) Operating Income Operating Margin (%) (Millions of yen) Net Income Net Income Margin (%) 400,000 60,000 24 40,000 12 353,479 10.4 35,400 49,832 50,000 20 9.0 286,603 30,000 10.0 300,000 273,577 9 25,729 240,478 40,000 16 13.0 22,705 217,678 6.1 29,279 5.6 200,000 30,000 14.1 12 20,000 6 9.6 28,388 24,653 16,731 10.2 13,575 20,000 23,169 9.0 8 100,000 10,000 3 10,000 4
0 0 0 0 0 3/2015 3/2016 3/2017 12/2017* 12/2018 3/2015 3/2016 3/2017 12/2017* 12/2018 3/2015 3/2016 3/2017 12/2017* 12/2018 *The THK Group changed from a fiscal year end of March 31 to December 31, beginning with the 2017 fiscal year. As the transition took place during that fiscal year, the scope of consolidation for that modified reporting period included 9 months for consolidated companies whose fiscal years ended in March and 12 months for consolidated companies whose fiscal years ended in December.
6 THK CSR Report 2019 Trade name: THK CO., LTD. Established: April 10, 1971 Headquarters: 2-12-10 Shibaura, Minato-ku, Tokyo 108-8506, Japan
Industrial Machinery Business Industrial Machinery Business (Other) Automotive & Transportation Business
THK is contributing to the higher precision, rigidity, THK is adapting its core linear motion system THK is working to expand its business primar- and speed of machinery by providing products, technology to cultivate fields related to con- ily through undercarriage L&S (Linkage and like the LM Guide, that are essential components in sumer goods such as seismic isolation and Suspension) products. such wide-ranging industrial equipment as machine damping systems, medical equipment, aircraft, tools and semiconductor manufacturing equipment. robotics, and renewable energy.
Net Japan sales ¥147.9 billion Sales offices 43 The Production facilities 12 Net Americas sales ¥70.5 billion Development bases 1 Management companies 1 Sales offices 9（USA: 7, Canada: 1, Brazil: 1） ISO 9001 certified 11 facilities Production facilities 6（USA: 3, Mexico: 1, Canada: 2） JIS Q 9100 certified 1 facility Management companies 1（USA: 1） ISO/TS 16949 certified 1 facility ISO 9001 certified 2 facilities OHSAS 18001 certified 5 facilities ISO/TS 16949 certified 3 facilities Employees （Male: 4,581, Female: 769） IATF 16949 certified 3 facilities Nonemployees （Male: 268, Female: 226） Employees （Male: 1,528, Female: 632） Intellectual property （142 published, 775 registered） Intellectual property （58 published, 364 registered）
RECENT EVENTS RECENT EVENTS ■ JIMTOF 2018 exhibition November 2018 ■ IMTS exhibition (USA) September 2018 ■ Omni THK launch (in select regions) ■ Omni THK launch (Brazil) September 2018 December 2018 ■ THK RHYTHM MEXICANA expansion completed August 2018
Return on Assets (ROA)/Return on Equity (ROE) Net Worth/Net Worth Ratio Employees
(%) Return on Assets (ROA) Return on Equity (ROE) (Millions of yen) Net Worth Net Worth Ratio (%) (Individuals) Japan The Americas Europe China Asia and Other 15 400,000 80 15,000 12.8 66.3 (Total) 9,494 9,677 11,738 13,364 13,478 62.0 61.2 12 60.7 60.0 10,494 9.9 300,000 60 10,426 9.7 270,948 10,000 11.3 247,797 247,348 248,940 283,605 9,251 9 7,518 7,630 6.7 200,000 8.2 6.1 40 6 7.0 5,000 6.1 2,984 5.5 2,487 2,938 100,000 20 1,976 2,047 3 0 Male Female Male Female Male Female Male Female Male Female 0 0 0 3/2015 3/2016 3/2017 12/2017 12/2018 3/2015 3/2016 3/2017 12/2017* 12/2018 3/2015 3/2016 3/2017 12/2017* 12/2018 TRA gender composition data added beginning 2016. Data cur- rent as of March 31 for every year prior to 2016, or December 31 for 2017 and beyond.
THK CSR Report 2019 7 THK’s Stance on the Relationship Between Social Challenges and CSR
Aiming to create an affluent society and increase our long-term corporate value through our business activities
In order to realize the goals of creating an affluent society and increasing our corporate value, we are diligently working to solve challenges faced by society. To that end, we will strengthen our corporate activities and product development centered on linear motion systems, ensure the execution of our company strategies, and actively promote CSR activities.
THK’s Strategies and Efforts Toward Solving Social Challenges
Challenges facing society
Increasing Labor
CO2 emissions shortages Lack of corporate Earthquakes governance awareness
Goals of our Increase our long-term corporate value corporate philosophy and CSR policy Create an affluent society through our business activities
Change in business style Corporate strategy to realize Development of new business areas our goals Full-scale globalization
8 THK CSR Report 2019 2022 Fiscal Year Management Targets
Consolidated net sales ……¥500 billion ROE ……………………………………………………………………… 17%
Operating income ………………¥100 billion EPS (earnings per share) ……………………… ¥560
Actions to support our strategies Materiality of CSR
Core technology products Product High precision, high rigidity, long service life, low noise
Development of core technology Next-generation products Product and next-generation products Renewable energy, robots, seismic isolation systems
Strengthening Activity our business foundation Governance, compliance, BCP
Connecting Activity with local communities Community involvement, volunteering, developing the next generation
Strengthening Activity Strengthening relationships supply chain relations with stakeholders THK Association, technology proposals
Actively sharing Activity information with shareholders IR events, IR tools
Revolutionizing how we work Activity Human rights, diversity, health and safety, Creating a pleasant work supporting development environment
Efforts for Activity environmental conservation Conserving energy, managing hazardous materials, reducing waste Reducing environmental impact
Engaging with other social challenges
THK CSR Report 2019 9 The Materiality of CSR and the Promotion of SDGs
CSR challenges and the promotion of SDGs in efforts to solve social issues
The SDGs (Sustainable Development Goals) are an international agenda of 17 goals and 169 targets related to the environment and development for the world to achieve between 2016 and 2030. These goals are held in common by every national and local government, non-governmental organization, and non-profit organization, as well as by public corporations and individuals with the aim of facilitat- ing sustainable livelihoods and societies under the banner of leaving no one behind.
THK is working toward the achievement of the 17 SDGs. However, our activities do not encompass all 169 targets. Below, we have outlined how the areas we are especially actively engaged in compare with the materiality of CSR. We will continue to actively work toward achieving the SDGs.
*Numbers in bold are the targets connected closely to our business.
17 goals
7. Energy 8. Decent work 9. Industry Materiality of CSR 11. Sustainable 12. Consumption/ 13. Climate cities production Development of core technology and next-generation products
Thinking, acting, and verifying from the customer’s 9.1, 9.4, 9.b 11.4, 11.b perspective
Products for global warming prevention, earthquakes, 7.1, 7.2, 7.3, 7.a 9.4 11.4, 11.b 13.1 coexisting with robots, and labor shortages
High quality that will satisfy every customer 9.b
Strengthening relationships with stakeholders
Working with local communities 7.2, 7.a 8.6 9.4, 9.b 11.6 (including charitable contributions)
Collaborations to develop talent 7.a 8.6 9.b
Creating a pleasant work environment
Efforts to empower individuals 7.1, 7.a 9.4 11.4, 11.b 12.5 13.3
Activities that consider human rights and diversity 8.5 9.1
Efforts to establish perfect work-life balance 8.5
Creating a work environment conscious of employee 8.8 and nonemployee health and safety
Reducing environmental impact
Eco-friendlier production activities 7.1 8.4 11.6 12.4, 12.5, 12.6 13.2, 13.3
Managing restricted substances and hazardous 12.4, 12.6 materials
10 THK CSR Report 2019 THK’s Approach to the Relationship Between the Materiality of CSR and SDGs
SDGs THK’s approach Materiality of CSR Details Targets THK’s role Product Activity Page
THK, which was the first Ball splines suitable ● ー p. 13 manufacturer to use rolling Development of 7.1 for wind turbines motion to achieve linear core technology Products for prevent- 7.2 7. Affordable and motion, applies its tech- and next-genera- ing global warming 7.3 Developed the Model clean energy nology to the renewable tion products 7.a WLS Low-Torque ● ー p. 20 energy field. Shaft Unit Award 1
・ Activities that con- THK prohibits human sider human rights ・ Employees with Creating a rights violations such as and diversity disabilities thriving pleasant work 8.5 ー ● p. 28 employment discrimi- Efforts to establish Award 2 environment ・ nation, child labor, and perfect work-life ・ HR data records forced labor. We endeavor balance to employ a diverse work- Collaborations to THK Education Out- 8.6 ー ● p. 29 8. Decent work force, providing opportuni- Strengthening develop talent reach Program and economic ties for people to learn the relationships with joy of manufacturing and Working with local Building community growth stakeholders 8.6 ー ● p. 31 the value of work while communities centers Award 3 creating an environment Creating a work environ- Creating a where people with disabili- ment conscious of em- p. 26– pleasant work 8.8 Health and safety ー ● ties can thrive. ployee and nonemployee 27 environment health and safety High-quality prod- High quality that will 9.b ucts used in blood ● ー p. 15 As a company focused on satisfy all customers creation and development, analyzers Development of THK discerns global mar- core technology Harmonious coexis- 9. Industry, ket trends and provides ● ー p. 21 and next-genera- Thinking, acting, and tence with customers innovation, and high-quality products with 9.1, 9.4 tion products verifying from the cus- infrastructure high added value to meet 9.b Technology solutions tomer’s perspective the needs of customers. with high added ● ー p. 23 value for customers THK develops and supplies products that work to Seismic isolation 11.4, 11.b systems that reduce ● ー p. 12 reduce damage caused by ・ Thinking, acting, and Development of earthquakes and provide verifying from the cus- earthquake damage core technology stability in people’s lives by tomer’s perspective 11. Sustainable and next-genera- protecting homes and other Products for earth- cities and tion products ・ property as well as historical quakes Robot parts used communities 11.4, 11.b ● ー p. 14 buildings and other aspects during disasters of cultural heritage. THK considers conserva- Managing hazardous tion of the environment to ・ Managing restricted 12.4, 12.6 ー ● p. 37 be a major management substances and materials challenge, and we comply Reducing envi- hazardous materials 12. Responsible with laws as we actively ronmental impact used 12.4 consumption and promote the conservation Eco-friendlier pro- Stringently managing ・ 12.5 ー ● p. 36 production waste of materials, zero emissions, duction activities 12.6 and green procurement. THK actively promotes equipment that will prevent global warming and works to improve the environmen- Reducing envi- Eco-friendlier produc- Activities to reduce 13.2, 13.3 ー ● p. 35 13. Climate action tal awareness of employees ronmental impact tion activities CO2 to leave the global environ- ment in a healthy state for future generations.
Awards from Public Institutions
Award 1 Award 2 Award 3
Award from the New Energy Foundation Award from the Japan Organization for Employment of Award from the Jinzhou New Area the Elderly, Persons with Disabilities and Job Seekers in Dalian, China
THK CSR Report 2019 11 Special Product for Earthquakes Feature
Shizuoka City Shimizu Hospital Shizuoka, Shizuoka Prefecture Maintaining Hospital Functions to Provide Medicine with Compassion Masatoshi Hagiwara Manager Diagnostic Technology Section Seismic Isolation Module Medical Technology Department Model TGS
Aiming to provide health care trusted by the local do it at 36 weeks is because the impact from the fetus has community settled at this point. Using a patient’s own blood for a trans- The Shizuoka City Shimizu Hospital was established in 1933 fusion (autologous blood transfusion) has also become an as a hospital for infectious diseases, and it now serves as option recently, but the amount of blood that can be stored a key hospital for the Shimizu district (population: around is an issue, and it is sometimes not enough when the patient 230,000). experiences heavy blood loss during delivery. That is why We work to revitalize regional medical care with our pre-transfusion testing is critical. basic philosophy: “Aim to provide quality, patient-focused care and contribute to the advancement of regional health Strengthening our ability to function as a disaster base care.” As one example, we work with general practitioners hospital and home care staff, continuously sharing information so the Before installing seismic isolation systems, we used to secure entire network of local medical institutions follows up with items to the floor to protect them from earthquakes. Seeing patients after they have returned home from the hospital. At the damage caused by the Great East Japan Earthquake and the same time, we are collaborating with the city and prefec- Kumamoto Earthquakes, it is clear that method was insuffi- ture to strengthen our ability to function as a disaster base cient. If a blood bank analyzer is not running due to a disaster, hospital. performing the tests manually would require significantly more time, and it would be too late for urgent transfusions. Human What is a blood bank analyzer? error also becomes more likely in a disaster situation, which Our Diagnostic Technology Section is divided into seven could impact the patient’s life. It is our duty as a medical insti- divisions that conduct physiological, urine, pre-transfusion, tution to always think of BCP measures to prevent damage to biochemical, blood, microbial, and pathological tests. We our medical equipment and restore normal operations imme- perform a critical role in identifying the cause of an illness, diately. Seismic isolation systems are an effective way to performing tests necessary for treatment and checking the mitigate damage to equipment by deflecting tremors caused status of the patient’s health and treatment. by major earthquakes. During large-scale earthquakes in the When a foreign substance enters the human body, the past, we recognized the performance of THK’s seismic iso- body’s natural reaction is to reject it. Blood bank analyzers lation systems at other institutions, and we already had them mix the patient’s blood with a sample to check for incom- installed for our hospital’s medical information servers. When patibility before a transfusion and confirm there will be no we replaced our automated blood bank analyzers, we seized adverse reaction, even when the blood types are the same. the opportunity to introduce seismic isolation. Our analyzers are running five to six hours a day, and they Going forward, we plan to install these systems for our are on standby around the clock to be ready for emergency biochemistry analyzers, too. Fortunately, we have not expe- surgeries at night or on non-business days. In particular, if rienced another earthquake where we would have had to a person is pregnant with a child serve as an evacuation shelter since the major earthquake in who has a different blood type (in 2011, whose tremors reached as high as 6 on the seismic ways other than just their ABO intensity scale. However, from the perspective of the Sendai blood group type), they may Framework for Disaster Risk Reduction 2015–2030 as well, form antibodies related to the we believe core hospitals in every region need to install seis- blood type. To prepare for heavy mic isolation systems for servers and hospital equipment to blood loss during childbirth, we minimize earthquake damage and fulfill our true purpose: perform pre-transfusion testing protecting the lives of patients. for everyone giving birth at our hospital during their 36-week Automated blood bank analyzer with a seismic isolation system check-up. The reason why we
12 THK CSR Report 2019 Special Product for Preventing Global Warming Feature
J . M . P Co., LTD. Hamamatsu, Shizuoka Prefecture THK’s Ball Splines Reduce Horizontal Vibrations, Proving Essential for Wind Turbines That Rotate in Light Breezes Michiharu Takakura Caged ball spline Representative President
A desire to preserve an environment like ours or better rotation to zero. for our children 2. We expanded the surface area of the Darrieus turbine’s When we were children, extremely hot days were very rare. blades, increasing the size of the area that catches the It is clear that global warming has progressed. I focused on wind. As a result, it can achieve higher rotation speeds, the renewable energy business because I wanted to curb and we can use wind power to the fullest extent. We also that progress and preserve our current environment, if not used the lightest materials possible so the turbine will a better one, for our children. We began working on our rotate even in light breezes. WinSky vertical-axis wind turbine with the goal of “WLB 3. By improving the Darrieus blades, we eliminated part of 88” (W: Wind-power system that generates energy through the Savonius. wind and solar power, L: LED lighting for reduced energy, 4. Noise is a common problem with small generators, but we B: Lithium-ion battery power storage, 88: 88% reduction in solved that issue by preventing the formation of vortices current energy consumption). with the reverse taper design of the blade tips. When suspending the turbine with magnets, the most What is the WinSky vertical-axis wind turbine? important thing is to keep it from shifting left to right. We had When developing the WinSky, we used an existing used THK when creating laser equipment in the past, so we Darrieus-Savonius wind turbine model and added original felt their ball spline was the only thing that could solve this improvements to increase the efficiency of power genera- problem. We installed their product and have been conduct- tion. (See the figure below. Savonius turbines rotate in light ing full-scale outdoor testing, and it has displayed absolutely breezes, but they have low power generation. Conversely, no problems in terms of strength or durability. Even during Darrieus turbines generate a lot of power, but it takes time for Typhoon Number 24, which struck Shizuoka Prefecture in their blades to start rotating.) These were the main improve- October, the turbine was able to generate power without ments we made: issue. 1. The Savonius was touching the top of the generator, Wind turbines generally only recover 6% of energy at a causing a load when the turbine rotated. To eliminate the wind speed of 4 m/s, but WinSky achieves a high level of weight acting on the generator, we used magnetic force efficiency, recovering 25% at similar wind speeds. to lift the turbine and reduce the weight during the initial Future developments I would like to add WiFi capabilities and use our turbines as
Darrieus blades street lights so they can act as IoT stations. More specifically, I would like to add map displays and speakers that can safely Cylindrical Savonius blade lead disaster victims to evacuation shelters in the event of an
Generator Suspended 1–1.2 cm above earthquake, typhoon, or another natural disaster that causes Ball spline used here the generator by the perma- nent magnets and ball spline a power outage. With technological assistance from THK, I Darrieus-Savonius wind turbine hope to promote further developments to reduce the degree of disaster risk and increase resilience, significantly expand the prevalence of renewable energy, and improve sustain- ability through clean technology and using natural resources more efficiently, as outlined in the SDGs.
WinSky vertical-axis wind turbine
THK CSR Report 2019 13 Special Product for Disasters Feature
The University of Electro-Communications Chofu, Tokyo, Japan Advancing Academic Research to Help Society
Motoyasu Tanaka Associate Professor Department of Mechanical and Intelligent Systems Engineering SEED MS Graduate School of Information Science and Engineering
What is a snake robot? For a robot to be used in high or tight spaces, there What comes to mind when you hear the phrase “snake are size and weight restrictions. Our compact, lightweight robot”? As you know, a snake is a creature with a simple design was made possible by the SEED MS. The SEED MS is shape and no limbs, but it can dart in any direction, scale in charge of both information coming from the sensors and trees, and glide through water. Since the 1970s, people have motors as well as commands being received remotely from been analyzing the characteristics and movements of snakes the operating computer. By concentrating data there, it acts that allow their slender bodies to slip into narrow spaces, as an information pathway to shorten communication time. researching ways to create snake robots that can perform I learned about the SEED MS when I went to an academic work in places people cannot enter. Now, these robots are conference for robots a few years ago. The product that was used to inspect attics and beneath floors in houses and being displayed in a nearby booth was exactly the size I was inside pipes in factories. They are also serving as disaster looking for. Now, it has become an essential component for response robots. small robots. The core of the snake robot is the movement I am fascinated with making things move, so I was drawn generated through countless sensors and motors, and the to the deep complexity of snake robots the moment I first SEED MS has enabled us to create an elegant wiring system saw one. I got involved in snake robot development to try to for it. achieve motion that is much more efficient and surpasses an imitation of snakes. Future developments The Sendai Framework for Disaster Risk Reduction 2015– THK’s products are essential for our snake robots 2030 outlines priorities including strengthening disaster risk I am researching “smart motion” controls for snake robots at management and preparedness, recovery, rehabilitation, the University of Electro-Communications. As shown in the and reconstruction. Toward that end, our snake robot has picture below, the robot we developed is formed out of many checked concrete wear in attics and inspected beneath connected joints and wheels. It can enter narrow spaces floors and inside pipes. In fact, it was used during the heavy and use the length of its body to traverse steps up to 1 m rains in western Japan to search inside homes that collapsed in height. In general, segmented robots have difficulty climb- from landslides. My aim is for the simple structure of this ing steps; the tires get caught around the edge of the step, robot to prove useful in everyday life in the future, broadly causing the robot to stop mid-movement. However, ours is contributing to society through the development of robots configured to only issue commands for the movement of the that can do things like wrap around people and give them head. The sensors attached all over the body detect the dis- massages, or clean places that are narrow or have steps. tance between the underbelly and the floor, and the robot gets over steps by taking measurements from the portion raised in the air and moving the joints with the proper timing. As a result, it can climb steps with simple maneuvering.
The T2 Snake-3 features a SEED MS on the side of each joint (indicated by the arrow)
14 THK CSR Report 2019 Special High-Quality Product Featuring THK’s Core Technology Feature
Beckman Coulter Japan Mishima Manufacturing Suntou District, Shizuoka Prefecture THK Products Are Essential for World-Class, High-Quality Analyzers
Hiroshi Serizawa Takatoshi Suzuki Plant Manager Mechanical Engineering Group Manager Ball spline, LM Guide Global Business Research & Development
Business expansion rooted in medicine and the local and we always strive to provide new products that meet community expectations. Our company’s business is centered on two fields: life sci- To protect the lives of patients, our analyzers must be ences and clinical diagnostics. The life science field includes durable so they can run 24/7 without failing. They must be genetic research and trying to understand life from a sci- high-quality so they can accurately perform blood tests, and entific perspective—for instance, by analyzing cells and they must be high-speed so they can conduct tests effi- extracting nucleic acid to research diseases and new cures ciently and provide patients with the results quickly. We aim as well as investigate complex biological issues. In our clini- for our products and service solutions to increase customer cal diagnostics division, we develop and manufacture clinical satisfaction so we can be the top business in the industry. analyzers that can be used for blood, biochemical, immuno- logical, microbial, and many other kinds of analysis. THK’s trustworthy technology and service We were also the first public company to take part in the What is critical for our analyzers is the precision and quality Pharma Valley Project, which involves health-related busi- of the components used during tests. The clinical chem- nesses ranging from the medical to the wellness industries istry analyzers incorporate many THK products, but the and conducts leading R&D to develop advanced, world- ball spline is used for the key part of the testing process, class medicine and technology right here in the Suntou positioning the sample being transferred at each process district of Shizuoka Prefecture. We strive to use the medical location with precision in all directions. Looking at the data experience we have gained since our founding to aid the from the past three years, the defect and failure rate of THK’s leading medical research and development promoted by this products during receiving inspections or on the market has collaboration between industry, academia, and government. been virtually zero. Their on-time delivery ratio has also been wonderful, ranking among our top suppliers in that regard. Aiming to develop the industry’s leading analyzer We are very grateful that they always respond sincerely to The Mishima factory is Beckman Coulter’s only produc- our requests, and they have provided numerous suggestions tion facility in Japan. We research and manufacture clinical during meetings with our technical staff. As previously men- chemistry analyzers used for clinical diagnostics and provide tioned, we export over 90% of our finished products, and quality assurance and customer support. Over 90% of our since THK has expanded its factories outside of Japan, we finished products are exported. We quickly reflect customer can rely on them from a part procurement standpoint, too. feedback in our product development and manufacturing, Our customers have many requests for us, so we look forward to continuing to consult with THK and find solutions. We hope THK will continue to reliably provide us with prod- ucts as we strive to manufacture world-class, high-quality clinical analyzers.
Clinical chemistry analyzer AU5800
THK CSR Report 2019 15 Compliance Committee Risk Management Committee Remuneration Advisory Committee Nomination Advisory Committee Consultation and Affiliated Companies Other Divisions, Departments, Recommendation Consultation Consultation Recommendation Recommendation Instruction, supervision Selection, dismissal, supervision Auditing Election, dismissal Report Report Nomination Advisory Committee and a Remuneration Nomination Advisory act as advisory bodies to the Board Advisory Committee to to bring we have endeavored In doing so, of Directors. and objectivity to management, enhanced transparency of Directors, of the Board the auditing functions strengthen - to management-re and efficiency speed and bring greater of corporate lated decision-making and the management affairs. President and CEO President Group Audit and Supervisory Board Group Board of Directors Board Global Management Strategy Meeting Report Report General Meeting of Shareholders Auditing, supervision Board of Executive Officers Af liated Companies (Executive Of cers) Af liated Instruction Divisions and Departments (Executive Of cers) Division Internal Audit Committee Secretariat Audit and Supervisory Election, dismissal Report Cooperation Division Audit and Supervisory Committee Risk Management General Meeting of Shareholders on June Shareholders General Meeting of th As advisory bodies to the Board of Directors, these committees review and deliberate on director and deliberate on director review these committees of Directors, As advisory bodies to the Board and makes decisions then deliberates of Directors The Board proposals. candidates and remuneration those topics. regarding of Directors, the management oversight function of the Board This system endeavors to improve and accelerates relating to the management of corporate affairs, responsibilities and roles clarifies operational execution. The directors on the Audit and Supervisory Committee, which serves in an auditing and supervisory on the Audit and Supervisory Committee, which serves in an auditing The directors their votes. meetings and exercise Directors of participate in Board capacity, and managing to audit and supervise the work of directors This committee utilizes internalcontrols executive officers. outside directors. and fairness, half of the members are transparency greater secure To
Corporate Governance Corporate Executive Officer System Executive Officer Nomination Advisory Committee and Remuneration Advisory Committee Nomination Advisory Committee and Audit and Supervisory Committee Cooperation, report Report Report Auditing ● ● ● ● ● Election, dismissal ▶ ▶ ▶ Accounting Auditors SUMMARY The executive officer system represents one of our main represents system The executive officer Governance Structure 18, 2016, and in conjunction with our establishment of 18, 2016, and in conjunction with our our Audit in place of Supervisory Committee Audit and an up a non-mandatory we set Board, Supervisory and Governance Structure Withstrive we value, THK’s corporate maximizing aim of the to our corpo- improvements to make medium- to long-term our corporate governance.rate value by bettering since June 2014. Additionally, and has been in place efforts after the 46 Management Structure Management THK CSR ReportTHK CSR Report 2019 2019
Management Structure 1616 Management Structure 1717 - - THK CSR ReportTHK CSR Report 2019 2019 - understand how personal information was being pro To In 2018, a total of 71 locations and departments were locations and departments were In 2018, a total of 71 the internal in 2018 Furthermore, evaluation performed ing, viewing, deleting, etc.) Any act done to personal information (collecting, storing, disclos Processing: Moving the personal information of EEA residents out of the EEA Moving the personal information of EEA residents *Transferring: GDPR Compliance Regulation) is a new The GDPR (General Data Protection of indi- the personal information framework for protecting (EEA) and Economic Area viduals living within the European governs* and transferring* of such data. At the processing outside of the first glance, the GDPR may seem irrelevant because of corporate globalization, Japan EEA. However, affected. and many other countries outside of the EEA are at our locations in Japan and the cessed and transferred that handle relevant EEA, we closely examined the areas we established a personal information. Based on the results, privacy policy and internal rules that comply with the GDPR. per have established a global framework for protecting We manage the information we sonal information and properly possess based on our policy and rules. * department and Group company are audited. These audits are company department and Group and the results on-site every year, generally performed are to and distributed internalin an summarized audit report are the departments under audit. both management and of Japan. audited in and outside Agency stan- framework outlined in the Financial Services the “Regulations for we have established and enforce dards, over Financial Reporting,” and we improve Internal Control them as necessary. The final requiring disclosure. found no critical deficiencies summarized in the internal control were evaluation results (Kanto submitted and disclosed to the Prime Minister report 2019. in March Local Finance Bureau) - -
Description s regulations. This committee makes s regulations. e-mail attacks from external sources e-mail attacks from information missions (4 locations in Japan) Data mapping and checking for compliance Establishing a privacy policy and internal rules Officer) Appointing a DPO (Data Protection Monitoring and updating anti-virus software and trans unauthorized access Preventing of targeted intrusion Detecting and preventing Sending information about e-mail scams Internal information security audits Self-survey on information security charge in Information session for staff Providing online training about personal online training about Providing ● ● ● ● ● ● ● ● ● ● ● Internal Internal Audit, Controls, Security Information and Activity In 2018, the activities below were conducted to strengthen conducted to strengthen In 2018, the activities below were Information Security Internal Controls have established the “Regulations for Internal Control We During internal the business activities of each audits, Internal Audit System countermeasures GDPR compliance Surveying and current correcting conditions Measuring results Training Sending out alerts ity, and roles and responsibilities of its members are clearly of its members are and responsibilities and roles ity, defined in the committee’ decisions concerning to the establishment of policies related information security systems, and it deliberates on responses to information security concerns. information security. Information Security Management CEO, by the Security Committee, chaired The Information author has been in place since 2006, and the organization, We have established and properly enforce our internal con- enforce have established and properly We with that each THK employee complies policy to ensure trol maintain sound laws and the articles of incorporation as we corporate operations and achieve our and transparent philosophy. over Financial Reporting” to comply with the internal- con which is based on the Financial system, reporting trol with the basic Instruments and Exchange Act. In accordance As a matter of basic policy, we conduct internal we conduct audits that policy, As a matter of basic and the departments being contribute to management audited. Internal monitor the business activities of auditors to the CEO reporting directly a group each department as any other department. that is independent from -
- Description partner locations subsidiaries (3 Europe materials (2 topics) establish a compliance committee for Chinese subsidiaries materials to increase via articles awareness about scandals, etc. (12 postings) Helpline via internal newsletter (3 times) committee member seminar (July) (5 sessions) an subsidiaries) locations (9 sessions) Compliance sub training (April) New hire Seminars at business Seminars at overseas e-learningProviding support to Providing and posting Creating THK Group Introducing Seminars at various THKSeminars at various ● ● ● ● ● ● ● ● ● - Fundamentals for the THK the “Fundamentals for Purpose Preventing illegal and Preventing acts that would wrongful significantly impact operations Global collaboration in work compliance-related pliance Improving knowledge Improving of com and awareness familiarity with Improving Helpline THK Group -
Activity In 2018, we introduced a system to simplify material clas- a introduced 2018, we In Training ing global compliance structure Establish Compliance violation awareness THK Group Helpline awareness Distribution of the Distribution of the Employees” Booklet Group With execute always properly the aim of helping employees “Fundamentals their duties without losing sight of our mission, materials Employees” contains the Group the THK for Philosophy, that constitute our CSR policy: our Corporate to value and contributing Corporate Basic Policies (creating compliance with laws and being customer-oriented, society, (ten Action Charter and The THK Group and regulations), in a total of principles of behavior). This booklet is available 12 languages and is distributed to all employees. 2018 Activities ensure compliance with the Foreign Exchange and Foreign Exchange and Foreign compliance with the Foreign ensure Act. Trade our catch-all examinations for sification and strengthened also looking are We countries without strict export controls. for catch-all examinations for into establishing procedures transactions. new business and e-commerce Committee Secretariat Risk Management Division Compliance Committee Chair: President and CEO Chair: President Compliance Subcommittees Thoroughly instill compliance awareness and create a work environment that does not allow wrongful acts. that does not allow wrongful a work environment and create awareness instill compliance Thoroughly Observers and Security Export Control Export Security and Compliance Structure Structure Compliance Headquarters, Sales, Technical, Production, Af liate Production, Headquarters, Sales, Technical, Legal advisor, etc. Legal advisor, Policy In consultation with the Ministry of Economy, Trade and Trade In consultation with the Ministry of Economy, Security Export Control Compliance Structure We use our intranet to promptly issue parameter sheets and use our intranet to promptly We grant permission for service transactions. examine transactions Industry and CISTEC, we carefully involving items with special applications and those for which and Order Control 1 of the Export Trade Appended Table to apply Order Exchange Foreign the of Table Appended the THK Group Helpline (InternalHelpline System) Reporting Group THK compli- Helpline was established to prevent The THK Group action in ance violations and to enable quick and appropriate are violation. There an employee committing a event of the two internal contacts (the Risk Management Division and Audit and Supervisory Committee) and one external con- Reports can be made tact (our legal advisor) for reporting. our rules ensuring and we faithfully enforce anonymously, unfa- their contents and prohibiting regarding confidentiality on the basis of having made a report. vorable treatment in 2018, and we worked with nine cases reported were There the necessary divisions to handle each case appropriately. Compliance Structure The Compliance Committee is headed by our CEO and con- The Compliance Committee is headed by our attendedis which committee, This year. a times four venes approves properly and a legal advisor, by outside directors of those on the execution the annual activity plan and reports violationsactivities, as well as on the handling of compliance internally. by employees and other matters reported Compliance Committee To thoroughly instill compliance awareness, we maintain we maintain instill compliance awareness, thoroughly To with the aim of various programs and conduct structures and ethical norms. internalcomplying with laws, standards, THK CSR ReportTHK CSR Report 2019 2019
Management Structure 1818 Management Structure 1919 - THK CSR ReportTHK CSR Report 2019 2019 Risk Management Division Committee Secretariat Description
BCP Promotion Council BCP Promotion Chair: President and CEO Chair: President Risk Management Committee Risk Management Committee to directors results risks, and reporting reviewing stocks outlook of primary cross-held and future ate risk-taking Established a BCP Promotion Council under the Established a BCP Promotion and Identifying, classifying, analyzing, evaluating, medium- to long-term financial sense Verifying Conducting studies that act to support appropri Members selected from each of ce Members selected from Chair: Production General Manager Chair: Production ● ● ● ● - Observers Legal advisor, etc. Legal advisor, Risk Management System a disaster, such as a large-scale earthquake (an earthquake a disaster, at least 6 Lower on the seismic intensity scale, or registering one that brings about significant destruction). Description Purpose Reviewing our risk management structure related to related Reviewing our risk management structure risks controlling and properly everyday risk prevention stocks suitability of holding cross-held Verifying Investment subcommittee studies ously reevaluate our BCP and ensure its practicality our BCP and ensure ously reevaluate Maintaining a BCP promotion structure that will continu structure Maintaining a BCP promotion Maintaining main and backup servers in separate data centers to go down (once per year) Practicing switching to backup servers in case main servers were and tools toppling of shelves that hold components, fixtures, to prevent facilities: installing equipment Production toppling of printers, cabinets, etc. to prevent installing equipment Sales offices: equipment rescue food, sanitary items, emergency supplies, and potable water, and sales facilities: All production Annual drills at all locations Annual satellite phone test ● ● ● ● ● ● ●
As a company that supports industry around the world, it is our essential social responsibility to minimize any essential social responsibility is our it world, the around industry a company that supports As disasters. of unforeseen to supply parts even in the event negative impact on society by ful lling our responsibility We facilitate assertive governance of bold risk-taking. with elements We Activity and BCP and Risk Management Committee Committee Management Risk Activity Policy Policy BCP Risk Management Committee Risk Management Reviewing risk assessments Other Servers Establishing the BCP Council Promotion Earthquake-proofing Emergency supplies Safety drills BCP Strategies for a Large-Scale Earthquake 2018 Activities Risk Management Committee annually and The Risk Management Committee convenes is attended is headed by the CEO. The committee, which the annual and legal counsel, approves by outside directors and maintain activity plan and works to establish, promote, - through risks by controlling the risk management structure Group. out the entire THK has established a risk management structure that antic- risk management structure THK has established a enabling management to take circumstances, ipates future to analyzing, and responding risks by identifying, appropriate the perspective of management and conceivable risks from the company as a whole. As a component manufacturer, THK is responsible for sup- THK is responsible As a component manufacturer, have We situation. the matter no customers, to parts plying formulated a BCP (business continuity plan) to minimize in the event of a rapid business recovery damage and ensure The award-winning WLS - s potential Members from administrative and engineering depart- administrative and engineering Members from our tech- improve strategies to develop continue to will We The WLS is provided as a complete unit that meets the The WLS is provided Our headquarters showroom is open during normal business hours (8:30 a.m. hours business normal is open during headquarters showroom Our to 5:30 p.m.) on weekdays. participating over the course of 15 sessions held at our participating over the course of 15 sessions headquarters and five other sales offices. of the structure ments exchanged ideas to come up with the that the con- and actual participants commented seminar, informative and very easy to understand. tents were focused on nical seminars, such as developing a curriculum holding participants and with high demand from products customers in distant regions. local seminars to reach * of safety, conforming to IEC 61400-2 international standards conforming to IEC 61400-2 international standards of safety, 0001 standards. for wind turbines and Japan’s JSWTA difficult that have proven for complex processes requirements such as rotary for conventional wind turbine manufacturers, machine component design, con- bearing assembly precision adjustments. and preload trol, - was granted in rec The award labor ognition of the reduced hours and significant perfor turbineswind for boost mance can that turbine manufacturers expect as end users of the WLS, in addition to the WLS’ for further development, includ- ing in markets outside of Japan. locally in four regions: Japan, the Americas, Europe, and the Americas, Europe, Japan, locally in four regions: website, an e-commerce have also established Asia. We products customers to purchase Omni THK, which enables we Furthermore, sales offices. without any THK in regions in overseas 34 and Japan in exhibitions 21 at booths ran Besides customers to our products. more 2018 to introduce hold pri- occasionally exhibitions, we also participating in to explain our vate shows and technical seminars as venues to customers. directly offerings - - s perspective. isolation system installed beneath our new headquar established in ters October 2017. Many customers signed up for the seminars, with over 300 people Together with Our Customers with Together s top-quality products), and Know-how (expertise for s top-quality products), The WLS is a high-intensity, high-efficiency, and low- high-efficiency, high-intensity, The WLS is a THK Receives the New Energy Foundation Chairman’s Award THK Receives the New Energy Foundation Chairman’s Technical Seminars Technical THK’s Sales Approach THK’s THK has established an integrated production and sales THK has established an integrated production The New Energy Foundation grants the New Energy Award The New Energy Foundation grants the New Energy Award - the introduc and activities to promote for new products use, and understanding of new energy tion, widespread role as a product of its significant In recognition in society. Model THK’s energy, new of use widespread the promoting Wind Turbines Shaft Unit for Vertical-Axis WLS Low-Torque and category of goods the in Award the Chairman’s received services in 2018. bearing unit that combines the shaft, bearings, and torque housings that form a small vertical-axis wind turbine. The bearings have a new design developed specifically for ver tical-axis wind turbines. Their significantly lower torque and has enables the turbine to activate in slight breezes of power generation. Furthermore, the efficiency improved critical items every component has been optimized, from provides This product such as the shaft to individual screws. and durability and guarantees a high level strength sufficient - to intro In May 2018, we began holding technical seminars allows customers to THK. The curriculum duce many more including up close, participants to experience our products * and a viewing of the seismic a tour of our new showroom structure with 118 sales offices and 35 production facilities and 35 production with 118 sales offices structure and sell to produce close to centers of demand in order The THK company name incorporates three principles: name incorporates three The THK company (the High Quality (tough, durable products), Toughness world’ these principles, we conduct our dailyour customers). Under we where approach a customer-focused with sales activities the customer’ from think, act, and verify results Technical seminar Technical Involvement in Society in Involvement THK CSR ReportTHK CSR Report 2019 2019
Involvement in Society 2020 In Our Customers’ Words Lessons in Customer-Oriented Sales from THK GUANGZHOU MINJIA MANUFACTURING TECHNOLOGY CO., LTD.
President Zhao Hu (Left)
Vice President Li Yuanyuan (Right)
—Tell us about your company. for the products we deliver, which gives us a lot of inspira- We were established in 2001 as a manufacturer focused on tion for technological innovation, one of our core principles. two divisions: parts for compressors and core components By manufacturing machines that would satisfy THK, with- for machine tools and robots. Our corporate philosophy out realizing it, we had naturally become able to create is to provide our customers with energy-saving and high- high-quality machines. In particular, we frequently exchange efficiency machine tools, competitive solutions, and supe- ideas about technology with THK MANUFACTURING OF rior service. We have production and sales bases in Suzhou, CHINA (CHANGZHOU), which has led to the development Involvement in Society Guangzhou, and Baoji, and 60% of our 300 employees work of our original multifunctional machines. at our development division located in Guangzhou. We have been recognized for our ability to develop original technology, —What do you think about THK’s technology and being the only Chinese company selected among affiliated service? metalworking businesses worldwide to receive a technology The stable quality of THK’s products is essential to our goal innovation award three times, in 2015, 2017, and 2018. We of producing the best machines in the world. They have an currently have 100 patents, and we are one step ahead of office near our factory in Guangzhou, so having salespeople other Chinese companies when it comes to machines that come over right away when there is a concern has been very manufacture ball screws, the LM Guide, and bearings. helpful. THK is a large corporation, but they treat each of their customers with the same, unchanging level of respect. —Tell us how you first encountered THK products. I often stop by exhibitions, and I see THK’s representatives I think it was about 30 years ago. When I was working in the doing their best to introduce even small and medium-sized machine tool development division at another company, a companies to their products. I admire how their sales efforts THK salesperson told me about their products. It was the remain unchanged while focusing on the future. THK truly first time I had seen a THK product, but I was convinced that practices customer-oriented sales activities, thinking, acting, sliding guides would give way to rolling guides in the future. and verifying results from the customer’s perspective. We That was how we began using the LM Guide, including in pro- have reflected that in our corporate philosophy, too. I have totype machines, 10 years before our competitors. Using the had the opportunity to meet President Teramachi, and look- LM Guide drastically improved our productivity, enabling us ing back, I almost feel like I have spent more time in meetings to develop high-quality multifunctional machines. Honestly, with THK than in industry meetings. I will reach out to people I think our technology would not have improved if I had in related industries, so when a new product comes out, I not met THK. That is because, even as we purchase THK hope THK will hold an information session for us. We will products, we also provide THK’s Chinese factories with pro- continue to maintain a good relationship with THK and refine duction equipment. THK has very strict quality requirements our technology. As a final note, I heard we are the first users outside of Japan to be introduced in THK’s CSR Report. We are greatly honored to have been chosen.
The four-axis grinding machine that won the technology innova- tion award in 2017 Interview THK CSR Report 2019 21 - Sales
Enforce safe driving practices materials Collect and reuse packaging and proper transactions Fair ● ● ● Distribution organizations shipments containers Reject dealings with criminal for air Security declarations Reduce waste via reusable ● ● ● Constantly having truckers wait on shipments 1. Constantly having truckers arrival times 2. Specifying unreasonable unavoidable delays 3. Punishing truckers for etc. 4. Asking truckers to violate weight regulations, to reflecting our CSR activities, in addition As we promote New system of accountability for freight owners New system of accountability for freight ate measures to prevent the recurrence of the violation. recurrence the to prevent ate measures In accordance with Article 64 of the Motor Truck Transportation Business Act, Transportation Truck with Article 64 of the Motor In accordance to a violation imposed in response administrative sanctions are in cases where transportation of excessive such as a truck transportation business operator’s that the driving, when it is recognized over-strained to prevent load or failure such as being owner, violation is mainly attributable to the action of the freight the Minister of Land, Infrastructure, owner, of the freight under the direction owner take appropri that the freight shall recommend and Tourism Transport * conduct value analysis proposals relating to machining tech- relating conduct value analysis proposals jumped dramatically and the number of proposals nology, 467 in 2017 to 550 in 2018. from the voices of customers, we will also continue to implement the voices of customers, we will also continue such as con- supply chain, activities that involve the entire ducting CSR surveys of our suppliers. - Production Comply with the EnergyAct Conservation Reduce impact on the environment Maintain safe working environment Pursue zero emissions ● ● ● ● Double communication with business partners to promote value analysis and production innovation value analysis and production business partners to promote Double communication with * Optimize procurement locations *Optimize procurement Develop purchasing system that incorporates AI system that incorporates *Develop purchasing
Purchasing/ In order to continue to provide THK products that satisfy our customers, we establish good, healthy, satisfy our customers, we establish good, healthy, that THK products to continue to provide In order relationships with our suppliers. and mutually beneficial Procurement Check for presence of environmentally Comply Comply with Actthe against organizations hazardous materials Proceeds, Etc. to Etc. Subcontractors Proceeds, Delay in Payment of Subcontract Reject dealings with criminal ● ● ● 3. Active proposals 1. Global procurement 2. Accelerated ordering Procurement practices emphasizing communication with suppliers. Evaluating and choosing suppliers with thorough consideration for QCDES Evaluating and choosing suppliers with thorough consideration suppliers. 1 Procurement practices emphasizing communication with laws and social norms 2 Fair and equitable dealings in compliance with all pertinent Encouraging the active pursuit of cost-saving projects and value-analysis initiatives 3 Efforts to minimize costs. 4 Pursuit of global procurement 5 Implementation of a BCP (business continuity plan) 6 Environmental consciousness through green procurement Basic Policy on Basic Policy Together with Our Suppliers Our Suppliers with Together Design Procurement Activities Policy Material Working with Suppliers Working Throughout our supply chain, from design to sales, we design to sales, our supply chain, from Throughout owners* freight Due to the new system of accountability for Lowlow noise, dust generation operation used in the food industry Purchasing Purchasing Develop grease that can be Long-term maintenance-free ty’s techniques. Businesses in the THK Association actively THK meets with suppliers to exchange technical information both par and refine to improve in order about processes THK’s Supply Chain THK’s s daily operations are performed in accordance with in accordance performed THK’s daily operations are in the optimal location products our policy to manufacture in technology our improve and business our conduct to and a way that meets the needs of our customers. strive to adhere to social norms and be environmentally con- to social norms and be environmentally strive to adhere a sustainable society. to create scious in order Transport announced by the Ministry of Land, Infrastructure, centers moved the time in 2018, our distribution and Tourism 4:00 p.m. to from by one hour, they stop shipping forward of truckers. to alleviate the workload 3:00 p.m., in an effort With of this new system, we have taken the introduction that actively steps to limit the following types of behaviors lead to violations: ● ● ● THK CSR ReportTHK CSR Report 2019 2019
Involvement in Society 2222 In Our Customers’ Words Customer Award-Winning Engineering Solutions and High-Quality Products Hitachi High-Technologies Corporation Analytical & Medical Solution Business Group
Taku Sakazume (Center) Medical Systems Product Division, General Manager
Tetsuji Kawahara (Right) Medical Systems Design 1st Department, Senior Engineer
Yukinori Sakashita (Left) Medical Systems Design 2nd Department, Senior Engineer
—Tell us about Hitachi High-Technologies and in the IVD industry, including those in clinical laboratories. Analytical & Medical Solutions products. We focused on the development of the analyzer, a kind of Our corporate vision is “Simplify our customers’ high-tech robot for biochemical reactions. It contains multiple mech- processes.” We have developed our business around three anisms for quantitative liquid transportation of samples and segments: “Analytical & Medical Solutions” that provide reagents, mixing functions, optical detection, and a tempera- bio and medical systems such as clinical analyzers and ture-controlled incubator to carry out the reaction. Around scientific instruments, “Nano-Technology Solutions” that one hundred reaction containers are processed in parallel. Involvement in Society provide semiconductor manufacturing equipment and elec- For clinical laboratories with limited space, the analyzers are tron microscopes, and “Industrial Solutions” that focus on designed with a combination of 3-dimensional movements. fields such as social and industrial infrastructure as well as This requires many linear actuators with high accuracy and automotive and transportation equipment, etc. We help our reliability. THK’s linear guide products are used for this very customers to solve their problems by providing technolo- precise movement. gies, products, and services based on our core technologies in “Observation, Measurement, and Analysis.” —Why did HHT award the VEC (Value Engineering for Customers) to THK in 2018? —Why did Hitachi High-Technologies (HHT) apply THK The competition in this market is based on the throughput products on your medical systems? you get out of the floor space. We have been working with a HHT provides clinical analyzers for clinical laboratories in European-based IVD reagent company for over forty years. hospitals and commercial laboratories. Generally, these They want to keep the established reagent composition. In products are categorized as IVD (in-vitro diagnostics)devices. addition to that, the system throughput and reagent capacity Our products are mainly used to quantify the concentration on board must be maximized in limited floor space. But the of components in blood, in urine, or in other body fluids. most critical point was reliability. New analyzers are expected Medical doctors can request several specific tests from to operate 24/7. To achieve that, THK’s marketing, sales, more than 200 items to identify diseases. The test menu has and engineering staff were requested to join the discussion been expanding for the last fifty years. In the past, it took with HHT’s purchasing and engineering team from very early time to get the results. Patients were requested by doctors in the concept stage. In 2018, we proudly selected THK for to appear the following week to get the results. Today, so the award from among our 1,500 vendors. THK supported many blood tests can be completed in a hospital’s clinical HHT in many important aspects, including prompt produc- laboratory within one hour after drawing a patient’s blood. tion on demand, high quality, and regulatory compliance. Medical doctors can diagnose the diseases more accurately. Supporting this change have been the many improvements —What does HHT expect from THK? In the IVD device business, it takes time to get the approval of products with IVD assays by healthcare authorities after the instrument design is fixed. After we get clearance, rapid production ramp-up is required. We would like to cooper- ate with THK in this business environment to prepare for the scale-up. From our experience of the earthquake in 2011, we would like THK to prepare for various kinds of natural disasters, including those that may impact THK’s mate- rial vendors. Recently, environmental and national security requirements have been getting more complicated. We expect THK to prepare for such requirements in advance.
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5. Analyzing Quality Providing Data and Feedback ISO/TS 16949 ● 1 1 ̶ VHUYLFH 3URGXFW Industry Aerospace Aerospace JIS Q 9100 LPSURYHPHQW Suppliers Suppliers UHOLDEOH SURGXFWV 6DIHDQG 11 24 13 RIILFLDOFHUWLILFDWLRQ ISO 9001 QHHGV Improve customer satisfaction 4. Providing Service 4. Providing and Gathering Quality Data 7+.JOREDOTXDOLW\QHWZRUN FXVWRPHU ●
0DUNHWDQG 4XDOLW\PDQDJHPHQWV\VWHPV Total Japan Suppliers Suppliers Suppliers Outside 4XDOLW\6\VWHP2YHUYLHZ of Japan Quality Management System Certification Status Quality Management System Certification Quality System Overview Group companies Group Group companies Group Quality Assurance Division - the world Pursue uniform quality all over Establish process capability 3. Purchasing, 3. Purchasing, and Production, Inspection ● ● Plant in Vietnam Plants in China Plants in Europe Plant in the Americas Plants in Japan Design review Mass production approval 2. Testing and 2. Testing Investigation ● ● Departments Quality Assurance We implement quality assurance activities that ensure we always deliver products that will satisfy our customersour satisfy will that products deliver always we ensure that activities assurance quality implement We and earn their trust. THK Headquarters Quality Assurance Structure Assurance Quality Policy Quality Furthermore, we perform regular quality audits based on quality audits based we perform regular Furthermore, quality data have also established a system that allows We and solutions Pursue function, performance, performance, Pursue function, President and CEO President 1. Development and Design ● Quality Management Process Global Quality Assurance Structure tified with the ISO 9001 Quality Management System. We Quality Management System. tified with the ISO 9001 system for the industrial machin- a quality assurance provide machine tools, semiconductor ery business that produces and robots, manufacturing equipment, medical devices, Withsystems. damping and isolation seismic our this as adapted standards base, we obtain certifications in quality transportation for new fields such as the automotive and industry. business and the aerospace partners the quality management systems at our business product improve and suppliers, and we work to maintain and quality assurance basis with a thorough daily on a quality structure. feedback from In addition to gathering globally. to be shared rapid analyzing it, and providing customers in each region, we endeavor to develop products service, and appropriate quality. that meet market needs and improve THK has established a quality assurance system in which THK has established of Japan is cer facility both in and outside each production THK CSR ReportTHK CSR Report 2019 2019
Involvement in Society 2424 Involvement in Society 2525 - THK CSR ReportTHK CSR Report 2019 2019 The IR Library contains various IR tools, including investor including investor tools, IR various contains Library IR The announcing newsletter This service sends an electronic our com- information about page contains general This also hold an exhibition after the meeting for partic- We The IR Information E-mail Delivery Service is managed by Mitsubishi UFJ Trust The IR Information E-mail Delivery Service is managed by Mitsubishi UFJ Trust and Banking Corporation. 1. IR Library results and summaries of financial information compiled from materials and videos are financial data. Presentation detailed held results briefings following the financial available here every year in February and August. (RIMSNET) 2. IR Information E-mail Delivery Service registrants. releases to results and other news financial ＝6481 Register at: https://rims.tr.mufg.jp/?sn * 3. For Our Individual Investors pany history and management strategy as well as examples applications. of our product Since 1998, we have held our General Meeting of which is based on the concept of an open Shareholders, during periods when few shareholder meeting, on Saturdays seats for observ- provide scheduled. We meetings are ers so that many people, including business partners, can participate. we where close, up products our experience to ipants utilized, are our products the various fields where introduce automotive and robots, industrial as machine tools, such transportation equipment, and seismic isolation systems. uled, accompanied by an exhibition Publish various IR tools and content oriented towards individual investors towards Publish various IR tools and content oriented to long-term strategies management targets, and medium- Compile company overview, Compile detailed financial data Interview around 500 analysts and institutional investors annually 500 analysts and institutional investors Interview around for institutional investors outside of Japan Hold IR meetings led by the president and at year end materials and videos on the IR website mid-year Post presentation sched meetings are during a period when few shareholder Scheduled on a Saturday ● ● ● ● ● ● ● 2 IR website IR meetings Annual Report Investor information (fact book) Roadshows outside of Japan briefing Financial results General Meeting of Shareholders 3 Together with Our Shareholders with Together General Meeting of Shareholders IR tools General Meeting of Shareholders The IR Website Primary IR Activities th IR events 1 49 Investor Relations page THK engages in IR activities in an effort to disclose information in a manner that is fair, impartial, expedient, accurate, and easy to impartial, expedient, manner that is fair, to disclose information in a in an effort THK engages in IR activities and results briefings IR events such as financial and valuable information through thorough more provide strive to understand. We website and Annual Report. relations IR tools such as our investor Met Met Met Met Met Met Met Met Met Met Met Met Met Met Result Not met Not met Not met ― 35 or older 35 or older Younger than 35 Younger than 35 Younger
[SR = (Number of lost workdays) ÷ (Labor hours worked) × 1,000] [IR = (Number of incidents) ÷ (Labor hours worked) × 1,000,000] Activity period from January 1 to December 31, 2017, and the data for prior years period from 31. April 1 to March a period from reflects General check-up Gastric cancer screening Lifestyle disease screening health examination Comprehensive cancer screening Uterine and breast Incident rate: Frequency of work-related injuries of work-related Frequency Incident rate: Due to the change in the fiscal year period in 2017, the 2017 data reflects a change in the fiscal year period in 2017, the 2017 data Due to the * Severity rate: Severity of work-related injuries Severity of work-related Severity rate: Medical Examinations Offered ISO 45001: Occupational health and safety management system standard and safety management system standard ISO 45001: Occupational health 2018 published in March OHSAS: Occupational health and safety management system * OHSAS: Occupational health * physical participation rate and the examinations our health the examinations our participation rate and physical insurance society offers. management system, as OHSAS will expire in 2021. as OHSAS will expire management system, 2018 0.01/0.09 0.76/1.83 2018 100% - Promote disaster prevention Promote Implement risk assessments and workplace safety training Implement risk assessments and workplace safety (chemical regulations information pertaining to relevant File and provide substance risk assessments) audits) internal and perform audits (reciprocal Prepare Conduct management reviews accidents) traffic safety activities (achieve zero Implement traffic Achieve 3.1 million hours without any accidents (class 1 accident-free record) 1 accident-free Achieve 3.1 million hours without any accidents (class accidents) occurring (zero workplace accidents from Prevent near misses to prevent submission of proposals Promote department) 1/month per indirect: 1/month per group, (production: Provide instruction to business partners who work on site and visitors Provide and special health checks Perform regular mental health Promote checks Perform stress activities Implement illness prevention physician recommendations based on occupational Make improvements Ensure employees confirm machines have completely stopped Ensure thoroughly hires) (temporary and mid-career new employees Train Conduct workplace safety patrols Promote 5S (6S) activities Promote THK/Japan average (%)) ( 2017 0.01/0.09 0.82/1.66 5 1 2 3 4 6 7 9 8 13 12 14 15 16 17 11 10 No. 2017 100% 2016 0.00/0.10 0.25/1.63 2016 100% 2015 0.01/0.07 1.13/1.61 2015 100% Objective 2014 Create a pleasant work environment with zero work-related accidents or illnesses. accidents or work-related with zero environment a pleasant work Create 0.00/0.09 0.20/1.66 Health and Safety and Health 2014 100% activities ment system (OHSAS 18001) to reach all ment system (OHSAS 18001) to reach employees Policy Annual Physical Participation Rate Incident and Severity Rates (Data) Management Structure Severity rate Incident rate 2. Revitalize health and safety committee 2. 1. Allow occupational health and safety manage- 1. 4. Enhance health management 3. Eliminate workplace accidents Annual Physical Participation Rate (THK CO., LTD., only) Annual Physical Participation Rate (THK CO., LTD., THK has its employees in Japan receive annual physicals THK has its employees in Japan receive our health medical examinations through and recommends The following tables show the annual insurance society. tification in 2010. In 2018, we took proactive measures in measures tification 2010. In in 2018,we took proactive In 2019, we worked on tran- with our policy. accordance occupational health and safety sitioning to the ISO 45001 Division in the Production 2018 Occupational Health and Safety Activities Five THK facilities in Japan earnedFive THK facilities in OHSAS* 18001 cer THK CSR ReportTHK CSR Report 2019 2019
Involvement in Society 2626 Involvement in Society 2727 THK CSR ReportTHK CSR Report 2019 2019 Dr. Takahiko Kouda giving his lecture Takahiko Dr. Employees listening attentively to the lesson Practicing stretching even better work environment. practical sessions on food and exercise and content geared and content geared food and exercise practical sessions on retirement. women and life after toward - - Around 100 supervisors and managers attended. One par Around Mental Health Class Establishing a Safety Dojo This dojo has a training area to teach basic safety knowl- to teach basic safety This dojo has a training area Forty-four people participated. After a lecture about lecture Forty-four people participated. After a RIZAP ticipant commented, “He explained what happens between to and when they return when a person becomes depressed perspectives of the individual, their the differing work, from ” follow. easy to really It was company. the and colleagues, Another noted, “It was a good opportunity to learn about will continue to deepen ” We something I might encounter. an and create of mental health issues to improve awareness Mental health issues in the workplace and health disorders Mental health issues in the workplace and health disorders concernsmajor field the in currently are overwork by caused to coincide with a company event As health. occupational of occupational Japan’s National Occupational Health Week, Kouda gave a class on mental health at the physician Dr. THK RHYTHM Hamamatsu plant in October 2018. DALIAN THK established its own safety dojo in September DALIAN THK established its own safety dojo This skills. employee and quality, safety, improve to 2018 dojo operates under the slogans of “Safety is the top prior Instill safety awareness through practice and aim to through ity!” and “Instill safety awareness accidents!” be a workplace with zero interactive training, as well as an prediction edge and hazard sensa- employees can experience the alarming where area electric an receiving or machine a in caught getting of tion was conducted at training shock. By the end of December, 940 employees participating. the dojo 28 times, with around DALIAN THK will continue to use its dojo to conduct training and employee skill levels. quality, and aim for higher safety, Comparing the results of the medical questionnaire filled out the medical questionnaire of Comparing the results the National with statistics from the annual physical before Insurance Societies, we learnedFederation of Health that and exercise, headquarters regularly few employees at our they go to bed. than two hours before many grab dinner less changes, we hosted a RIZAP (pronounced lifestyle inspire To “rye-zap”) seminar in November 2018. on one’s lifestyle, setting goals, and the RIZAP reflecting an activ- was etc.), there method (low-sugar diet, exercise, technique. squatting with the proper and ity for stretching asked for more Participants praised the seminar and - 0 0 0 2 0 0 0 0 0 0 1 1 F 16 12 0 4 7 7 7 59 26 23 99 Total as of Total M 374 239 325 101 12/31/2018 1,271 1 0 0 0 0 0 1 0 0 0 0 0 0 0 F 7 0 0 0 0 6 0 0 0 1 1 6 M 31 10 Passed in 2018 Data includes 12 THK facilities in Japan. Total Employees Who Passed the National Trade Skill Test & Certification & Test Skill Trade National the Passed Who Employees Machine maintenance Metal material testing Electrical drafting Machine/plant drafting Plastic molding Machine inspecting Finishing Pneumatic equipment assembling Hydraulic equipment adjusting Electric equipment assembling Electrical discharge machining Machining Metal heat treating If I recall, I learned about THK during a plant tour when If I recall, cators and instructors who interact with people with disabilities, Bureau Labor Yamaguchi by the appointed advisor an as and for supporting the employment of people with disabilities. in September 2018. He was recognized for his keynote speech September 2018. He was recognized in aas work his for and with disabilities, people given to many at a local government-sponsored seminar for new edu lecturer myself whenever possible. Repair work suits me, and I myself whenever possible. Repair work fix to able am I when feel I satisfaction the describe cannot the from an award something. In September 2018, I received chairman of the Japan Organization for Employment of the - Persons with Disabilities and Job Seekers in recog Elderly, in the workplace. nition of my efforts - I was a student at a school for the deaf. The polite recep me that it was the employees assured from tion I received and I decided to join. As I have worked a good company, everyone at I have felt the kindness emanating from here, me. The award plant as they come to greet the Yamaguchi of the cooperation of the people was the result I received receiving me, and I am grateful. I will work toward around governor and the Minister of the prefectural from awards Health, Labour and Welfare. 3 40 57 2.4 F ― 43 100 100 13.8 2 2 3 1.7 ― M 100 100 194 17.7 ×100 2018 - - 46 59 1.8 100 100 234 2.12 17.1 Overall ×100 66 39 39 1.9 F ― 100 100 13.7 2 3 0.8 ― M 100 100 209 18.1 One took extended leave. Inclusion mandate: 2.20 2 4 2017 41 69 1.0 100 248 100 2.20 17.5 ×100 Overall ernor of Yamaguchi Prefecture ernor of Yamaguchi Shunsuke Yoshinaga, deputy Shunsuke Yoshinaga, manager of the General Affairs plant, Section at the Yamaguchi individuals towas one of three gov the from award an receive Since joining the company in in Since joining the company 2000, I have been in charge allof calibrating and repairing measuring instruments used Calibrating at our factory. involves testing these instru- ments by operating them in confirming way, the correct they display an accurate and repair measurement, repairs ing or outsourcing as needed. Gauges can a number offor malfunction including water orreasons, 71 97 19 19 2.4 F ― 100 14.2 2 0 1.3 ― M 100 112 100 19.0 2016 21 71 97
1.5 Total employees reinstated after childcare leave after childcare employees reinstated Total 100 131 2.17 18.3 Overall 1 Total employees planned to be reinstated after childcare leave after childcare employees planned to be reinstated Total Total employees still registered two months after returning from childcare leave childcare two months after returning from employees still registered Total 4 Total employees reinstated after childcare leave during previous reporting period reporting leave during previous after childcare employees reinstated Total Employees registered at the year end Employees registered Employees who left during the fiscal year Supporting Development Supporting Prefectural Governor’s Award Governor’s Prefectural HR Data Records Dedicated Calibration Technician Receives Award for His Efforts Award Receives Dedicated Calibration Technician Individuals with shortened hours Employees with disabilities (%) Reinstatement rate (%) Retainment rate (%) Individuals on leave childcare Turnover rate (%) Turnover of service Years Individuals eligible leave for childcare rate only includes full-time employees. Turnover took extended leave. Three At the calibration room desk Hiroyuki Fujimoto Hiroyuki Quality Assurance Section Plant Yamaguchi Reinstatement rate = Retainment rate = 1 3 rate = Turnover oil penetration or being dropped. It is easier to ask a vendor oil penetration or being dropped. them, but I factor in the cost and time and fix them to repair THK CSR ReportTHK CSR Report 2019 2019
Involvement in Society 2828 Involvement in Society 2929 - - Arm THK CSR ReportTHK CSR Report 2019 2019 R Guide Main island I was really amazed at the spectacular amazed at the spectacular I was really land on the ocean concept of creating of this team repeatedly and the efforts coming up with and testing hypothe toward ses to gradually make progress for their goal. I will continue rooting future to their them, and I look forward research. A Word from the Technical Advisor the Technical from A Word
Grant THK Prize. Out of thirty-four research grant of thirty-four research Grant THK Prize. Out Our experiment is still ongoing. Even if it is not much, Our experiment is still ongoing. Even if it As we did in 2017, we also sponsored the second Science also sponsored As we did in 2017, we Shodai Aoyama Reliability Research Section, Fundamental Technology Research Laboratory Leave a Nest Co., Ltd., is a company whose corporate philosophy is “Advancing Leave a Nest Co., Ltd., is a company whose corporate philosophy initiatives in sci for Global Happiness.” They promote Science and Technology ence education and training for the next generation. a Nest Co., Ltd., holds for junior high that Leave Science Castle is a conference and high school students. Breakwater The R Guide protects the island by absorbing wave motion * * was somewhat absorbed (see photo). experimentation, we and repeated trial and error through hope to see satisfying results. meeting. After incorporating feedback from those educators feedback from meeting. After incorporating the generation of talent, we refined into our vision of the next content of our learning materials. Castle* School High Gakuin Seiko and adopted, were ten proposals, the THK Prize. was awarded program is.” program “All of the students were extremely engaged in the activities. The fact extremely “All of the students were this time speaks to how effective focused the entire that they remained “The Japanese education guideline reforms encourage a focus on the “The Japanese education guideline reforms aligns well with that goal because it pursuit of knowledge. This program things without a set solution.” involves creating
What teachers said: ● ● We are grateful for the are We opportunity to present of our research the results are at Science Castle. We that we won also proud the THK Prize for using the LM Guide as the subject of our research “It was really fun to use so many tools in creative ways.” fun to use so many tools in creative “It was really their chance for every student to share “It was a great ideas.” First, we discussed different social challenges the world First, we discussed different artificial islands and install the R Our plan is to create Science Castle Grant THK Prize Winner: Seiko Gakuin High School Science Castle Grant THK Prize Year Two of the THK Education Outreach Program Outreach of the THK Education Two Year What students said about the school visits: ● ● to experiment and develop our own solution for a challenge faced by society. - ̶energy prob problem concluded that every facing. We is lems, food shortages, and overpopulation̶stems from using the ocean, focused on effectively a lack of land. We felt we which we cannot say has been utilized enough. We land to solve the land shortage could use the ocean for more and showcase Japan’s advanced technology to the world. to the island that surround structures floating on the Guide the push and pull of the waves. from absorb the rocking a small model, placed it in an acrylic pool, When we created the movement caused by the waves we and measured of the floating surfaces generated, we found that the rocking Seiko Gakuin High School team members - to support pro experience as a manufacturer use our To with Leave a Nest Co., Ltd.* active learning, partnered we in Program THK Education Outreach launched the and students to manufacturing 2017. In 2018, we introduced man- to create began our program school visits and through Kaichi the visited learning We materials. ufacturing-related and in March Nihonbashi Gakuen Junior High School twice the THK head- invited junior high school teachers to visit the learningquarters for an information session about partici- Following the information session, materials project. Committee pants attended the Learning Materials Research - Recipient Japanese Red Cross Japanese Red Cross Japanese Red Cross Japanese Red Cross Japanese Red
Purpose Science Fair at the Onoda Sunpark. The theme Science Fair at the Onoda Sunpark. The theme Northern Osaka earthquake July 2018 heavy rains Hokkaido Eastern Iburi earthquake Sulawesi earthquake (Indonesia) th Date Both days were packed with attendees, and many deter many and attendees, with packed were days Both We will continue to pursue activities that present children children will continue to pursue activities that present We Charitable Contributions Science Fair June 2018 July 2018 Sept. 2018 Oct. 2018 of the event was inspiring scientific curiosity and interest and and interest of the event was inspiring scientific curiosity of science. people to the fun and appeal more introducing hourglasses make children helping of charge in was THK the raw material used for our products. with iron, mined visitors helped the hourglasses take form. The event mined visitors helped the hourglasses take the materials we was so successful that we ran out of all to make over 150 hourglasses. brought “Why?” and with challenges that encourage them to wonder their scientific interest. nurture (Above) Engaged participants (Below) Completed hourglasses In September 2018, the Yamaguchi plant participated in the plant In September 2018, the Yamaguchi two-day 9 - - Local Communities Local porate resources to promote specific contributions based contributions specific promote to resources porate on our corporate philosophy governments,including NPOs, NGOs, local communities, and international institutions involvement that contribute to society through our business activities through Minato City Marathon THK’s Approach THK’s In 2018, we provided financial support for numerous numerous financial support for In 2018, we provided The front of the THK headquarters served as a checkpoint The Minato City Half Marathon 2018 was held in December The Minato City Half Marathon 2018 was held THK headquarters the where of Tokyo, in the Minato ward oper the event and provided cosponsored is located. We Coordinating and cooperating with various stakeholders, Coordinating 3. 4. Supporting employees’ own community contributions and Participating in industry and business community efforts 5. in and for multiple natural disasters causes, including relief people to the joy of young introduce outside of Japan. To 184 internsof a total welcomed we also manufacturing, at the world. facilities around 10 production as course volunteering employees with five support, ational of the THK headquarters was a in front guides. The area runners so station first-aid a provided we and checkpoint, was The event could enjoy the marathon without worry. and 19 of our employees also with good weather, favored will continue to deepen our participated as runners. We activities closely through communication with local residents located in. we are tied to the regions Identifying areas to prioritize our efforts and using our cor and using to prioritize our efforts areas Identifying 2. As a good corporate citizen, THK actively contributes to soci- As a good corporate citizen, include: Our activities ety. contributing to society philosophy of basic Establishing a 1. THK CSR ReportTHK CSR Report 2019 2019
Involvement in Society 3030 Involvement in Society 3131 THK CSR ReportTHK CSR Report 2019 2019 Sekigahara 2018 Coexisting with Local Communities Coexisting with This festival is held every year, and we plan to continue and we plan to continue This festival is held every year, In March 2018, Dalian announced a directive to establish to 2018, Dalian announced a directive In March THK’s snack stand THK’s At the conference (in back, on right) The Gifu plant ran a snack stand at the Sekigahara festival The Gifu plant ran a snack stand at held in October 2018, serving mitarashi dango, hot dogs, and soft drinks. The lively two-day festival was blessed 60,000 visitors attended. and around good weather, with and 17 of our The THK snack stand was also very popular, During time there. employees spent a busy but rewarding the festival, our employee parking lot was open to attendees, many of whom took advantage of the parking space. City thanked us for our cooperation. representatives the local area. actively supporting it as a means to revitalize In 2012, Vice President Sun at THK Liaoning became Sun at THK Liaoning became In 2012, Vice President People’s Political Consultative a member of the Dalian a district under the New Area, for the Jinzhou Conference city of Dalian. Every year since then, administration of the of local the desires reflecting up proposals she has brought of services a strengthening proposed citizens. In 2017, she centers community establish to aimed which elderly, the for with the work can interact whose caretakers children where ’s sev- Area the Jinzhou New received This proposal elderly. the by adopted was and award proposal enth outstanding city. community centers for Dalian’s elderly and other residents, its elderly and the city plans to continue strengthening services. - I started practic- ing karate 25 years ago. I have been active in the Shintani Karate Kai Wado Federation for over 10 years, and I cur around instruct rently 20 students ranging 7 to 75. in age from Karate helps you
Community Involvement THK Liaoning immediately collected donations for the for donations collected immediately Liaoning THK Heavy Rain Disaster Area Relief Area Heavy Rain Disaster Through our lessons, you naturally learnThrough how to behave The landfall of Tropical Storm Rumbia in mainland China in in mainland Rumbia Storm of Tropical landfall The to 13 cities, including Weifang, August 2018 caused damage Around ’an in Shandong Province. Tai Dongying, Heze, and with 18 by the disaster, affected 5.09 million people were eco- direct The persons. missing cases of nine fatalities and yuan (about billion 12.08 a loss of reached impact nomic water levels of the heavy rains, 193.3 billion yen). As a result and Heihushan reservoirs Tangshuiya, at the nearby Yeyuan, massive flood- Releasing the water triggered drastically. rose homes, city of Shouguang, causing ing in the downstream with and pig farms to be inundated fields, greenhouses, crop damage. in severe water and resulting gathered sending the clothes and bedding areas, affected to the Shouguang Charity employees 100 around from General Association. Mike from TRA CANADA’s Mike from TRA CANADA’s St. Catharines plant (second from left) Donated relief supplies develop respect for others, self-confidence, and self-control. develop respect quiet, Even when people come to us shy, as part of a group. to the they grow and lacking self-confidence, after a year, they could lead the class. I hope that my stu- point where karate and become in practical ways through dents grow with of a crowd the kind of person who can speak in front confidence. ％ ％ ％ ％ ％ ％ ％ ％ +7 +5 +7 -23 +26 +21 +16 +15 Change Change Change Change 2 2 2 2 Packaging materials 4,105 7,079 2,353 2,047 21,359 18,568 2018 2018 2018 2018
114,579 102,801
emissions per production volume in yen. emissions per production 2 2 2 2 2 3,541 6,164 1,691* 3,044 emissions (absolute emissions) from our 12 production our 12 production emissions (absolute emissions) from 2 81,799 20,048 17,628 2017 2017 2017 2017 106,838 emissions: 100,624 (2017), 106,282 (2018). 2 and coolant Results Grinding wheels 5
The value for volume disposed was revised after a recalculation. The value for volume disposed was revised emissions is defined in terms of CO 2 * Material Procurement Green procurement Green CSR procurement ● ● Main Initiatives for 2018 Metal materials Production volume (t) Production Air emissions of PRTR (kg) substances waste (t) Total Recycled (t) Disposed (t) Main raw materials (t) materials (t) Main indirect Packaging materials (t) Waste facilities in Japan in 2018 increased 5.6% compared to the previous year. However, we were able to achieve we were However, year. to the previous 5.6% compared facilities in Japan in 2018 increased our emissions ratio goal of 0.70. THK’s target for reducing our CO target for reducing THK’s With the increase in our production, the amount of CO With in our production, the increase Target was 0.70. Result was 0.70. CO Target Target was less than 0.50. Result was 0.19. (Target achieved.) was less than 0.50. Result was 0.19. (Target Target achieved.) was 70,826. Result was 62,608. (Target Target ) 2 Components for vertical-axis wind turbines emissions ratio (t-CO 2 1. Conserve energy on existing equipment 2. Improve system for energy use 1. Conserve energy on existing equipment 2. Improve Zero emissions rate (%) Zero PRTR substance use (kg) 3. Upgrade air conditioning 4. Replace light fixtures material use waste 2. Reduce 1. Sort and recycle of shipments 1. Reduce PRTR substances 2. Review solvents used 3. Reduce frequency CO Endurance testing 4 Concept 3 E (Endless, Ecological, Economical) Item Item Development THK Group Business Activity Activity Business Group THK Overview Impact Environmental Product design Development of products with reduced with reduced Development of products impact environmental energy field Components for the renewable Conserving energy and resources Conserving energy and resources waste Recycling and reducing procurement Green Recycling and reducing waste Recycling and reducing procurement Green INPUT ● ● Environmental Targets Environmental OUTPUT 1 1 2 3 2 3 No. No. Caged products Harmony with the Environment the with Harmony THK CSR ReportTHK CSR Report 2019 2019
Harmony with the Environment 3232 Harmony with the Environment 33 33 ％ % % ％ +5 -24 +15 +15 Change Change Change THK CSR ReportTHK CSR Report 2019 2019 (1 million yen/year) 2 2 2 70
115 5,385 1,983 2018 2018 2018 Packaging material improvements forklifts Low-pollution ● ● 2 2 2 67 152 4,665 1,724 Logistics 2017 2017 2017 Main Activities 3 ) 2 shipping methods 3 Green logistics Green Streamlining ● ● 3 emissions (t-CO 2 Installing energy-efficient facility equipment Installing energy-efficient development New product Monitoring air and water quality, performing Monitoring air and water quality, maintenance on washing equipment and sewage tanks costs disposal, recycling Waste managing chemical substances energy use, ISO activities, reducing Local activities, PR activities Green procurement activities procurement Green CO Air Emissions (Logistics) Solar power generated (MWh) Gasoline (kL) Diesel (kL) 0 0 90 93 22 291 108 563 239 1,115
Cost ％ ％ ％ % ％ ％ ％ ％ 0 0 0 +5 58 38 37 -18 +40 528 238 142 253 +7 -13 -13 +20 Change Change +0.2 1 Change Investment 2 2 2 14 3,189 2,872 240 2018 2018 prevention 4,250 1,047 183,598 Global warming emissions Zero 2018 ● ● 275,271 2 2 2 16 3,872 2,053 200 2017 2017 4,912 1,045 175,540 Production Type 2017 256,167 Total The overview of our environmental impact and environmental accounting data is based on the following production facilities: the following production is based on data accounting impact and environmental of our environmental The overview Twelve production facilities in Japan: Yamagata, Kofu, Gifu, Mie, Yamaguchi, THK NIIGATA, THK INTECHS (Sendai and Mishima), NIPPON SLIDE, NIPPON SLIDE, and Mishima), INTECHS (Sendai THK THK NIIGATA, Mie, Yamaguchi, Kofu, Gifu, Yamagata, facilities in Japan: production Twelve and Kyushu) Inasa, RHYTHM (Hamamatsu, and THK Changzhou Liaoning (China), (China), Wuxi THK (China), DALIAN TMI (Ireland), (USA), TME (France), Japan: TMA outside of facilities Eight production (Vietnam)(China), and TMV Data was collected from the 12 production facilities in Japan. facilities in 12 production the from Data was collected fiscal year. to December for the 2018 January and from for the 2017 fiscal year April to March period from Data covers the Yamaguchi. Kofu, Gifu, Mie, and Yamagata, facilities in Japan: production five from Data was collected facilities in Japan. for the 12 production the target values These are ) 1 2 3 4 5 2 (t) (kL) Resource Resource conservation material Hazardous management Energy conservation (kL) (MWh)
3 3 (t) Upstream and downstream costs and downstream Upstream Management activity costs and development costs Research Community activity costs damage costs Environmental Business costs Pollution control conservation Global environmental Recycling and conserving resources
) ● ● ● ) 3 3 Environmental Accounting 1 5 2 4 6 3 No. emissions (t-CO 2 Kerosene Electricity Bunker A fuel oil Liquefied natural gas Propane Energy Input NOx (Nm SOx (Nm CO Air Emissions (Production) TUV URS SGS DQS DQS DQS CQC Body Body AFAQ VERITAS BUREAU Certifying Certifying China Czech France Thailand Country Country Malaysia Republic Germany Revised on April 19, 2018
Production Facility Production Production Facility Production THK MANUFACTURING OF CHINA (WUXI) THK MANUFACTURING THK Manufacturing of Europe THK RHYTHM (THAILAND) THK RHYTHM GUANGZHOU THK RHYTHM MALAYSIA DALIAN THK, THK MANUFACTURING OF DALIAN THK, THK MANUFACTURING CHINA (LIAONING) THK RHYTHM CHANGZHOU THK RHYTHM AUTOMOTIVE GmbH THK RHYTHM AUTOMOTIVE CZECH Europe Asia JIA JQA SQA DQS DQS DQS Body Body ClassNK Certifying Certifying SAI GLOBAL Group’s Basic Environmental Policy Basic Environmental Group’s USA Japan Canada Country Country Production Facility Production Production Facility Production This basic environmental policy is disseminated to all divisions in the group through education, training, and through to all divisions in the group policy is disseminated This basic environmental both within and of information on the environment timely release campaigns, and we facilitate the awareness outside the Group. We recognize the impact our business activities have on biodiversity, and we will actively work toward the and we will actively work toward our business activities have on biodiversity, the impact recognize We conservation of all life on Earth. guidance and support activities, we provide to our environmental regard collaboration with achieve greater To and also strive to work in cooperation and harmony with the companies and business partners, to our affiliate community. We will continually promote the development of products that help reduce environmental impact. environmental that help reduce the development of products will continually promote We of energy the reduction use in our business activities and continually promote will cut down energy We gas emissions. consumption and greenhouse only our manufacturing division, we will not of waste from and recycling With a particular focus on the reduction pollution. but also strive to prevent resources, of the saving and recycling continue to promote We consider conservation of the environment to be a major management challenge, and we are striving to to be a major management challenge, and we are of the environment consider conservation We All divisions and services impact the environment. activities, products, accurately understand how our business challenge. this goals to address environmental set appropriate regularly reviewed that are laws, we have set self-imposed standards In addition to complying with environmental management. environmental of our and effectiveness the efficiency to improve Management Promoting Environmental Environmental Promoting 8. 6. 7. 3. 4. 5. 1. 2. ISO 14001-Certified Facilities Basic Environmental Policy Basic Environmental Yamagata Plant, Kofu Plant, Gifu Plant, Yamagata Plant, THK NIIGATA Mie Plant, Yamaguchi THK RHYTHM Headquarters, Hamamatsu Plant, Inasa Plant, Kyushu Plant THK INTECHS Headquarters, Mishima Plant, Sendai Plant THK Manufacturing of America THK RHYTHM NORTH AMERICA THK RHYTHM AUTOMOTIVE MICHIGAN THK RHYTHM AUTOMOTIVE CANADA (Tillsonburg) THK RHYTHM AUTOMOTIVE CANADA (St. Catharines) The Americas Japan The THK Group contributes to both society and the economy through our pioneering role as manufacturers of the Linear Motion Linear the of manufacturers as role pioneering our through economy the and society both to contributes Group THK The in a healthy leave the global environment to also believe that it is a company’s social responsibility We Guide and other products. impact our environmental initiatives to continually decrease the following promoting which is why we are state for the next generation, the natural environment. and to sustain and improve THK CSR ReportTHK CSR Report 2019 2019
Harmony with the Environment 3434 Harmony with the Environment 3535 emis- 2 THK CSR ReportTHK CSR Report 2019 2019 emissions by 791 2 emissions by 9.82 tons. 2 emissions by 242 tons. 2 After the upgrade emissions by 315 tons. 2 The Gifu plant converted 316 metal halide lamps in the To assure a well-lit production environment, the Wuxi plant the Wuxi environment, a well-lit production assure To Upgrading to LED Lighting Air Conditioner Upgrade Air Conditioner The Kofu plant converted 234 fluorescent lights in the office lights in the office The Kofu plant converted 234 fluorescent sions, the THK Group manufacturing facilities have been manufacturing facilities sions, the THK Group lighting to long-last- and mercury fluorescent switching from LED lighting. ing, high-efficiency annual energy con- factory building and test building, reducing sumption by 674,652 kWh and CO converted 878 lights in the factory building and 580 lights in annual energy reducing such as the assembly room, areas consumption by 977,521 kWh and CO In order to reduce energy consumption and curb CO energy consumption and curb to reduce In order To reduce energy consumption, TMA upgraded the HVAC consumption, TMA upgraded the HVAC energy reduce To plant to eight Carrier high-efficiency units in the LM Guide air temperature controlling capable of are The new units units. annual energy consumption reduce and efficiently 52% more CO by 408,000 kWh and The Wuxi plant before the upgrade High-efficiency air conditioning unit tons. building, Factory 2, and Factory 3, reducing annual energy building, Factory 2, and Factory 3, reducing consumption by 24,709 kWh and CO
emissions by 2 -
Vaporizing furnace to Vaporizing regulate pressure emissions. 2 and Preventing Global Warming Global Preventing and Conserving Energy Energy Conserving Propane Storage Area Improvements Storage Area Propane Coolant System Improvements Coolant System approximately 46 tons/year. approximately To make better use of propane in the carburization process, carburization process, in the make better use of propane To at storage area to the propane made were improvements the layout of pipes that the DALIAN THK plant. They revised to the carburizing furnacesa and installed carry propane - pres liquid phase apparatus (vaporizing furnace) to regulate This has allowed a stable amount of gas to be supplied sure. to a leading when the yield was lower, even in the winter, use and a 4.05 ton/year in propane 1,350 kg/year reduction in CO reduction To consistently supply coolant and optimize energy con- optimize supply coolant and consistently To plant converted the centralized sumption, the Yamaguchi energy-sav- 3 to a high-efficiency, coolant system in Factory the December 2018. As a result, unit in ing inverter control its energy consumption was able to reduce plant Yamaguchi or about 15.4 kL of crude oil by about 65,500 kWh/year, CO its The facility also decreased per year. Revised layout of pipes carrying pro (in furnaces carburizing the to pane yellow) centralized coolant system Inverters added to Factory 3’s Inverters added to Factory 3’s - 2 1 Covering containers in plastic Material recycling Thermal recycling Metal, subbase, cement Subbase, grinding wheels fiberboard cardboard, Paper, Glass Plastic Water fuel Combustion aid, regenerated 44,643 (in 2018)
Waste Waste Reduced Use of Dust-Proofing Plastic Bags Reduced Use of Dust-Proofing Plastic bags used: 254,547 (in 2017) Plastic bags eliminated: 209,904 (82% reduction)
Plastic oil Waste Used paper, cloth, wood chips Grinding sludge Metal scrap Grinding wheels Cardboard Material recycling: Reusing waste as raw material for another product Reusing Material recycling: as combustion material Using waste Thermal recycling: Wrapping parts separately The THK RHYTHM MALAYSIA facility manufactures auto- manufactures facility The THK RHYTHM MALAYSIA They have motive steering and suspension components. dust been wrapping components in plastic bags to prevent trans- and containers in put are they as parts the to adhering As between the machining and assembly processes. ferred their plastic bag use, this facility to reduce part of their efforts into containers and then cover began putting parts directly they ing stacks of those containers with plastic. As a result, to the their use of plastic bags by 82% compared reduced year. previous Waste Recycling Methods Recycling Waste 1 2 reaching our annual target of less than 0.50%. our annual target reaching Steel Plastic Circuit boards Circuit and Achieving Zero Emissions Zero Achieving and Conserving Resources Resources Conserving Sorting and Recycling Office Automation Waste Automation Sorting and Recycling Office Conserving Resources and Achieving Zero Emissions and Achieving Zero Conserving Resources The waste produced by our business activities includes by our business activities The waste produced zero and promote As we work to conserve resources Mixed waste is now separated In October 2018, the Kofu plant began sorting the waste the sorting began plant 2018, the Kofu October In old print- automation by taking apart office generated from panels, and PCs that cannot be ers, ink cartridges, control steel, and plas- boards, and separating the circuit repaired its mixed waste (which includes steel, tic components from The sorted possible. whenever and glass) plastics, vinyl, materials. used as recycled are boards steel and circuit The aim of zero emissions is to recycle waste generated is to recycle emissions The aim of zero materials beneficial to switch processes, during production industrial uses, and get as close that can be put to other zero promote as possible. We waste to discharging zero and use of direct the controlling emissions activities through reusing and materials, emissions and final waste, indirect and recycling. metal scrap, oil and liquid waste, grinding sludge, packag- metal scrap, oil and liquid waste, grinding our waste, separating ing, and plastic waste. By thoroughly such as or transform waste into usable materials, we reuse by turning sludge with steel scrap into steel-making material, oil and plastic grinding wheel dust into cement material, and waste into fuel. (volume of waste emissions, we achieved an emissions rate once again disposed/total discharged) of 0.19% in 2018, THK CSR ReportTHK CSR Report 2019 2019
Harmony with the Environment 3636 Harmony with the Environment 3737 THK CSR ReportTHK CSR Report 2019 2019
emissions by around 32%. They will continue to will continue They 32%. around by emissions 2 Changing the Cleaning Solution Changing the Cleaning Collection Frequency Reducing Waste More Efficient Container Transport Container Efficient More Truck delivering shipping container to the distribution center Truck - environ its impact on the to reduce As part of its efforts shipping ment, THK China has worked to consolidate sent products The shipping efficiency. trucks and improve are China in customers for Japan from week every ship by at the Port the boat and loaded onto trucks unloaded from the contents of unloaded containers of Dalian. Previously, transporta- to trucks used for ground would be transferred As of June 2018, tion and sent to the distribution center. a bed of the now loaded onto is itself container entire the result a As center. distribution the to transported and truck the average able to reduce they were of this improvement, 15.2 to 4.9, lowering number of trucks used per month from CO annual The Gifu plant changed the cleaning solution it uses when The Gifu plant changed that go in the LM Guide used for washing the steel balls By switching to a non-PRTRautomotive components. sub- annual use of PRTR their substances stance, they reduced 49.5 kg. by around compactor to The TRA CZECH facility installed a trash - the fre decrease the volume of waste and thereby reduce the frequency reducing of a result of collection. As quency once a month, twice to of its landfill waste collection from the waste truck’s travel distance by this facility decreased by around 6,000 km/year and its fuel consumption around 240,000 L/year. promote activities aimed at greater transportation efficiency. activities aimed at greater promote 8 100 75 50 25 0 74 (kL/1 million ton-kilometers) ― 229 112 1,930 2,353 (Fiscal year) Air Emissions 60. 3 2018 5,385 Energy Consumption last year to 5,385 tons, an 2 59.3 2017 4,665 742 193 from Transportation from 2,563 4,741 5,803 2 48,566 62,608 Amount 61.3 2016 3,908 Emissions 2 CO 59.5 2015 3,977 Total emissions from transporting products and compo- transporting products emissions from 57.7 and Green Distribution Green and Managing Hazardous Materials Hazardous Managing 2 2014 4,129 Substance Emissions and Energy Consumption from Transportation Emissions and Energy Consumption from ） 2 0 2 Reducing Our CO PRTR Substance Use PRTR PRTR Law: Law Concerning Reporting, etc. of Releases to the Environment in Their Improvements of Specific Chemical Substances and Promoting Management (kg) Xylene Toluene Ethylbenzene Benzene Methylnaphthalene Other 1,500 3,000 4,500 6,000 The data collection period was from April to March for the 2014 to 2017 fiscal April to March The data collection period was from January to December for the 2018 fiscal year. years and from CO Our CO * In an effort to reduce the amount of hazardous materials amount of hazardous the to reduce In an effort have a negative impact on the human can (materials that our reducing are we use, we that ecosystem) an or body PRTR* The PRTRthe subject to of chemicals use Law. the in found those primarily are THK at used substances we use as fuel. Our goal is to reduce gasoline and heavy oil - In 2018, the reduc the amount we use by 3% each year. heating system HVAC from tion in heavy oil use resulting of 10,409 14% reduction upgrades led to an approximate 73,017 kg to from fiscal year, to the previous kg compared 62,608 kg. increase of 720 tons (about 15%). Because of our increased of 720 tons (about 15%). Because of our increased increase and higher ratio of trucks used for transit, our production transport energy consumption (ratio of energy use to freight 59.3 last by about 1.7%, from in ton-kilometers) increased year to 60.3. nents rose from 4,665 tons of CO from nents rose （t-CO Third Party Opinion
The following is a third party’s opinion of THK’s CSR Report 2019, its 13th edition.
The importance of non-financial information A supply chain perspective Efforts at building a sustainable world have picked up signifi- In “Together with Our Suppliers,” the stages of THK’s supply cant momentum, with the SDGs adopted at a UN summit in chain are listed as design, purchasing/procurement, produc- September 2015 and the Paris Agreement in December of tion, distribution, and sales. Going forward, I believe it would that year. Interest in ESG investment has risen in Japan, with be effective to further develop this arrangement and consider GPIF (Government Pension Investment Fund) signing the PRI contents for the CSR Report from a perspective focused on (Principles for Responsible Investment) in September 2015. As the supply chain. For example, by coming up with business a result, we are transitioning from an era where investors eval- risks and opportunities that may impact THK and applying (or uate companies solely on their financial value, such as sales connecting) them to future materiality of CSR as appropriate. and profits, to an era where they look at non-financial value, evaluating how companies are engaging with environmental Stakeholders featured in the report and social challenges as a lens to determine whether they can The “How THK Connects with Stakeholders” section at the expect to see long-term, stable growth. beginning of the report provides an overall understanding of Accordingly, even this report states in the introduction’s THK’s various stakeholders. A total of six customer organiza- CSR Policy: “We endeavor to improve our long-term corporate tions appear in the “Special Features” and “In Our Customers’ value,” and the Message from the CEO says, “Our products will Words” sections, providing an objective perspective on how greatly contribute to the achievement of the SDGs.” In particu much THK’s high-quality products have helped solve envi- lar, I want to praise the fact that the materiality of CSR are ronmental and social challenges. The report also features clearly organized alongside the SDG icons in the “THK’s Stance comments and reflections from employees who have received on the Relationship Between Social Challenges and CSR” two- awards from external organizations, students and teachers page spread in an aim to increase THK’s long-term corporate who participated in THK’s school visits, and the recipients and value and create an affluent society through its business activ- THK employee in charge of the Science Castle Grant THK ities. These materiality of CSR also serve as guideposts for the Prize. The fact that so many stakeholders are represented is entire report, appearing in the discussion of THK’s approach on commendable, but the trend seems to lean toward customers. the following pages and throughout the report. Consolidated Although there are page limitations, in the future, consider tying net sales and other metrics are set as KPIs (key performance the materiality of CSR into the structure of the CSR Report indicators) in terms of financial value, but I recommend viewing by introducing a series of voices from several different stake- the materiality of CSR, which fall under non-financial value, as holders other than customers (for example, the engineers KPIs, establishing medium- to long-term goals (which could who developed products using THK’s core technology, female be qualitative targets) for those they can, and using the PDCA employees, and suppliers and business partners). cycle to pursue them.
Representative, Sustainability Consulting Part-Time Teacher, Seikei University Masatoshi Ikari
Profile: Born in 1957. Graduated from the Department of Engineering at Tohoku University and joined Mitsubishi Materials Corporation in 1982. After working at MS&AD InterRisk Research & Consulting, Inc., has held current position since April 2018. Public office held: Member of the 6th through the 22nd Environmental Communication Award Working Group (2002–2018) held by the Ministry of the Environment. Publications: Evolutional Strategy on Environmental Risk for Financial Institutions (coauthor, Kinzai Institute for Financial Affairs, Inc.), Practical Guidance on SDGs for Corporate Environmental Staff (coauthor, Nikkan Kogyo), and many more.
38 THK CSR Report 2019 Editor’s Note
In this report, we analyze THK’s relationship report. Your opinions are valued and will guide with CSR in its efforts to solve social challenges. us in our future CSR endeavors and the creation In addition, we consider the role our com- of future reports, so please use the attached pany plays in achieving the SDGs. As always, survey to send us your honest thoughts and we cover our company’s various activities in opinions. the “Management Structure,” “Involvement in Society,” and “Harmony with the Environment” URL: www.thk.com/eng/csr/a2019 sections. Use this QR code to access We will continue to pursue initiatives that will the questionnaire from your smartphone or tablet. earn the trust of our stakeholders and disclose that information in a suitable manner. To that end, CSR Project Office we would like to hear your thoughts about this (The next edition will be published September 2020.)
THK CSR Report 2019 39 THK CSR Report 2019 201910015 CATALOG No. 42-12E No. CATALOG www.thk.com/eng/csr(CSR page) URL: www.thk.com URL: THK Building, 2-12-10 Shibaura 2-12-10 Building, THK Minato-ku, Tokyo108-8506, Japan Phone: +81-3-5730-3911 Fax: +81-3-5730-3915 Fax: +81-3-5730-3911 Phone: