CSR Report 2017 Orientation of this report The structure of the two-part JTEKT CSR Report which was used up until FY2015 and which contained a Message (printed booklet) and a Details & Data section (online PDF file), was integrated into an online PDF file as of last year. It comprises of four parts, “JTEKT's CSR Management”, which is a brief summary of CSR-promoting initiatives, a “Special Edition/Technologies Supporting Value Creation” which introduces examples of product development, and the “Social Report” and “Environmental Report” which introduce concrete activities, systems, data and so on. ＊Renewal period differs according to each interactive tool, and therefore their respective target periods for renewal may vary. Information for shareholders and investors CSR-focused information for the general public and experts JTEKT CSR Management Annual Securities Report Summary JTEKT REPORT 2017 CSR Report 2017 Special Edition Summary Brief report of business strategy, Ongoing report of CSR activities Social Report Corporate Governance Report results, business activities, etc. (supplements the JTEKT Report) Environmental Report Timely disclosure Summary Corporate Message Editing policy ● This report aims to inform our stakeholders in straightforward language of JTEKT’s concept and activities surrounding CSR. ● For related articles: M = JTEKT CSR Management F = Special Edition S = Social Report E = Environmental Report J = JTEKT REPORT 2017 Target period and target organizations/scope Target period FY2016 (April 2016 - March 2017) ＊Some items include content from other periods. Target organizations and scope All activities of the JTEKT group For items for which there is no criteria uniform across the JTEKT group, the unconsolidated results of JTEKT are displayed. As a general rule, if there are changes in the tallying scope, we revise data dating back to the past. Reference guidelines ◎ The 4th edition of Sustainability Reporting Guidelines (G4 Guidelines) ◎ Japan’s Ministry of the Environment “Environmental Reporting Guidelines (2012 edition)” ◎ ISO26000 (International Standard for corporate responsibility) This mark is used to indicate new actions begun in FY2016 and information disclosed for the first time in this year’s report. New! ＊This mark is omitted for the Special Edition. CONTE NTS M JTEKT CSR Management F Special Edition/ Technologies Supporting Value Creation S Social Report E Environmental Report Third-party opinion on the JTEKT CSR Report 2017 Response to the third-party opinion CSR Report 2017 JTEKT CSR Management JTEKT JTEKT’s Concept of CSR Social Responsibility Management About CSR (Corporate Social Responsibility) In February 2009 JTEKT formulated its CSR Policy. In April 2016, it rearranged these into JTEKT’s Concept of Corporate Social Responsibility and the Corporate Activities Standards and is engaging in a wide range of CSR activities. Concept of CSR The JTEKT group focuses on fulfilling its mission of “Seek to contribute to the happiness of people and the abundance of society through product manufacturing”, and engages in business activities in harmony with the economy, society and the environment based on our Corporate Activities Standards. As a good corporate citizen, we work to resolve social issues together with our customers and suppliers who share this mindset in order to continue contributing to the sustainable development of society and the world. Corporate Activities Standards ● The CSR Report 2017 PDF is published with the aim of conveying the concept and activities pertaining to JTEKT’s Responsibility to our customers and business partners CSR in an easily understood manner. This report emphasiz- es objectiveness, completeness and continuity. ●We follow proper business practices and engage in fair, ● Please refer to the JTEKT REPORT 2017 for information transparent and free competition based on a respect for about JTEKT’s business performance, business activities, the law. planning, and strategy. ●We derive concepts from the market, provide the best in ● For related articles: quality, technology and service, and obtain the satisfac- M = JTEKT CSR Management F = Special Edition tion and trust of customers. S = Social Report E = Environmental Report Responsibility to our shareholders J = JTEKT REPORT 2017 ● We maintain close communication not only with share- holders but also with society at large and disclose Target period and target organizations/scope corporate information properly, while at the same time Target period working to improve our corporate value on a continuous FY2016 (April 2016 - March 2017) basis. * Some items include content from other periods. Responsibility to our employees Target organizations and scope All activities of the JTEKT group ● We respect the individuality of employees, create For items for which there is no criteria uniform across the JTEKT group, workplaces that are motivating to employees and enable the unconsolidated results of JTEKT are displayed. As a general rule, if them to fulfill their potential, and strive to provide each there are changes in the tallying scope, we revise data dating back to with abundant living circumstances. the past. Contributing to regional societies and to global society Reference guidelines ● As a good corporate citizen, we aggressively pursue ◎ The 4th edition of activities that contribute to society. Sustainability Reporting Guidelines (G4 Guidelines) ◎ ISO26000 (International Standard for corporate responsibility) ● We follow international rules, observe the laws, cultures and customs of countries and regions where we have operations, and seek to contribute to their growth. ● We carry out global environmental improvement activities JTEKT’s Concept of Social Responsibility M_01 proactively and aggressively with deep awareness of their being an important corporate mission. CSR promotion M_02 M _01 JTEKT CSR Management CSR Report 2017 CSR Promotion Companywide CSR activities in each department Outline of the CSR promotion structure JTEKT considers CSR activities to be true corporate activities and has each department prepare an annual CSR implementation Board of directors plan. In addition, we rotate a PDCA cycle（ *1） in accordance with monthly management based on policy management. Through Council for Enhancement Administrative mechanisms such as this aimed at achieving goals, we are of Corporate Value Working Group (CSR, risk) applying our company policies and business/function policies Secretariat into concrete initiatives and steadily promoting CSR activities. Compliance Working Group *1 PDCA cycle PDCA is a management tool for continuously improving work by repeating a Companywide Health & Safety Plan-Do-Check-Action cycle. Management Committee Safety Assurance Export Specialized working groups Global Environmental Conservation Management Committee Committee Specialized working groups are established to create and promote activity plans for compliance, trade control, confidential Intellectual Property Committee Trade Control Working Group information control, and social contribution, all of which are Council of Public Disclosure important themes. Corporate Quality Meeting Confidential Information Control Technology Management Meeting Working Group Purchasing Function Meeting Social Contribution Production Function Meeting Working Group Human Resources Function Meeting Information System Function Meeting Administrative Working Group Plan and monitor the progress of CSR activities, regularly assess risk management status and evaluate risks. Compliance Working Group Raise awareness and reinforce the need for compliance with laws, internal rules and business ethics. Trade Control Working Group Propose and promote measures for securing compliance with foreign rules concerning imports and exports. Confidential Information Control Assess and improve in accordance with guidelines and strengthen structures and Working Group systems concerning information security. Social Contribution Working Group Promote social contribution and volunteer activities. Start of discussion to improve corporate value Establishment of the Council of Public Disclosure JTEKT has regularly inspected the progress of its CSR activities JTEKT conducts appropriate information disclosure in accordance in the CSR Promotion Committee chaired by President that was with laws and regulations. In August 2016, the Council of Public formed in February 2009. Meanwhile, in recent years, society has Disclosure was established, comprising of concerned directors begun placing particular emphasis on sustainable value creation and managers of JTEKT’ s Corporate Headquarters. This Council by companies and stakeholders’ interest in this area is growing confirms the facts of information necessary for the realization of year after year. For JTEKT as well, the extent to which we can corporate governance and proactively discloses this through a improve corporate value through our CSR activities is a major timely and appropriate route. In addition to this information, factor in our ability to fulfill our Corporate Philosophy of “Seek JTEKT also discloses ESG（ *2） information in JTEKT Report, our to contribute to the happiness of people and the abundance of integrated report, in order to increase the transparency of our society through product manufacturing”. For this reason, in March corporate activities and strengthen our foundation as a company 2017, the name of “CSR Promotion Committee” was changed to trusted by society. “Council for Enhancement of Corporate Value” and the