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2016 Safety & Environmental Report

2016 Global Warming Efforts and Status 2-2 Safety and Environmental Risk Management Reducing Waste / Preserving Water Resources 2-1 Employee Enrichment through Safety and Environmental

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Page 1: 2016 Global Warming Efforts and Status 2-2 Safety and Environmental Risk Management Reducing Waste / Preserving Water Resources 2-1 Employee Enrichment through Safety and Environmental

2016 Safety & Environmental Report

Page 2: 2016 Global Warming Efforts and Status 2-2 Safety and Environmental Risk Management Reducing Waste / Preserving Water Resources 2-1 Employee Enrichment through Safety and Environmental

Safety & Environmental Report 2016

C O N T E N T S

 EditorialPolicy ScopeofDisclosure

02

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BuildingSafetyandEnvironmentalFoundation

OurEffortstowardImprovingtheEnvironment

ApproachtoHealthandSafetyEfforts

WhythisReportwasPublished

The Taiyo Yuden Group strives for perpetual growth while fulfilling its corporate social respon-sibilities. Making efforts toward improving safety and the environment is an important social re-sponsibility at Taiyo Yuden, so we promote such activities on a global scale. Every fiscal year, we publish a Safety and Environmental Report presenting our goals, our efforts, major results, and other details in a comprehensive yet easy to understand format.

IntendedReadership

This publication assumes a target readership consisting not just of customers and clients, but also local communities in the vicinity of our sites, stockholders, investors, people involved in environmental activities or occupational health and safety, NGOs, students, group employees, and a wide range of other stakeholders. We also publish this English version to make the contents available to readers overseas.

ReferencedGuidelines

This report follows the Environmental Reporting Guidelines (2012 edition) issued by the Japanese Ministry of the Environment. We have listed the core indicators of environmental performance with reference to GRI’s “Sustainability Reporting Guidelines (4th edition)”. Mixing in charts and figures, it outlines Taiyo Yuden Group’s envi-ronmental impact describes our management systems, spotlights current issues and reports on specific measures for improving that impact.

PublicationonourWebsite

This report is published on the Taiyo Yuden website, in consideration of effective use of resources, etc. We hope that this report will help you gain a deeper understanding of our environ-mental, health, and safety activities, and be used as a reference for making an objective judgment of the Group.

Reference:TheTaiyoYudenwebsite http://www.ty-top.com/

OrganizationsCoveredbythisReport

This report covers TAIYO YUDEN CO., LTD. and its domestic and overseas subsidiaries and affiliates. Safety and environment data covers the following Taiyo Yuden Group members: six domestic sites, eight domestic group compa-nies, and seven overseas group companies.

[Within Japan]TAIYO YUDEN CO., LTD.Takasaki Global Center / Haruna Plant / Nakanojo Plant / Tamamura Plant / Yawatabara Plant / R&D Center

Consolidated SubsidiariesTAIYO YUDEN CHEMICAL TECHNOLOGY CO., LTD / TAIYO YUDEN TECHNO SOLUTIONS CO., LTD. / FUKUSHIMA TAIYO YUDEN CO., LTD / NIIGATA TAIYO YUDEN CO., LTD. / TAIYO YUDEN ENERGY DEVICE CO., LTD. / WAKAYAMA TAIYO YUDEN CO., LTD / TAIYO YUDEN MOBILE TECHNOLOGY CO., LTD. / KANKYO ASSIST CO., LTD.

[Outside Japan]Consolidated SubsidiariesSouth Korea: KOREA TAIYO YUDEN CO., LTD. / KOREA TONG YANG YUJUN CO., LTD. / KOREA KYONG NAM TAIYO YUDEN CO., LTD.

China: TAIYO YUDEN (GUANGDONG) CO., LTD. / TAIYO YUDEN (TIANJIN) ELECTRONICS CO., LTD.

Philippines: TAIYO YUDEN (PHILIPPINES), INC.

Malaysia: TAIYO YUDEN (SARAWAK) SDN. BHD.

PeriodCoveredbythisReport

This Report focuses on our performance from April 1, 2015 to March 31, 2016 (Date of any activities which have taken place outside this period are specified).

DateofIssue July 2016(Previous Issue: July 2015; Next issue scheduled for July 2017)

SafetyandEnvironmentalManagementSystem2-1

DeterminingEnvironmentalImpactofCorporateActivities

AchievementLevelsforMedium-TermOccupationalHealthandSafetyTargets

NewMedium-termOccupationalHealthandSafetyTargets

SafetyandEnvironmentalManagementSystem2-2

AchievementLevelsforMedium-TermEnvironmentalTargets

EffortsandStatus2-1SafetyandEnvironmentalAuditsNewMedium-termEnvironmentalTargets

CurbingGlobalWarmingEffortsandStatus2-2SafetyandEnvironmental

RiskManagementReducingWaste/PreservingWaterResources2-1

EmployeeEnrichmentthroughSafetyandEnvironmentalTraining ReducingWaste/

PreservingWaterResources2-2

EnvironmentalAccounting OurEfforts

AppropriateManagementofChemicalSubstances

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Building Safety andEnvironmental Foundation

Our Efforts toward Improvingthe Environment

Approach to Health and Safety Efforts

02

Safety & Environmental Report 2016

Safety and EnvironmentalManagement System 2-1

SystemOverview

PromotionStructure

Ourgroup-wideSafetyandEnvironmentalManagementSystemkeepsindividualactivitiesproceedingtowardcommongoalsunderacommonphilosophy.

This management system consists of a small plan-do-check-action (PDCA) cycle inside a big one. The big PDCA cycle specifies shared objectives and standards, checks implementation status using internal site audits and reports from sites, and reviews the management system, seeking continuous improvement.The small PDCA cycle builds and promotes management systems compliant with ISO14001 and OHSAS18001 standards at each business site.

The officer in charge of safety and environmental affairs appointed by the President has overall responsibility for building and managing the promotion structure for Taiyo Yuden’s Safety and Environmental Management System.The Taiyo Yuden Group Safety and Environment Committee, the Taiyo Green Strategy (TGS) Committee, and the Energy and Resource Conservation Committee debate and decide policies and issues to be addressed. Each manager of sites then converts his/her decisions into actual plans matching the characteristics of each site, and takes charge of publicizing, enforcing and promoting these concrete targets.

Decision-making body for safety &environmental activitiesDiscusses and decides the activity policies, targets, etc. for the Group as a whole

Core organization responsible fordiscussing and examining chemicalmanagement policy

Core organization responsible fordiscussing and examining energy andresource conservation issues

Decision-making body of each siteSubcommittees are established under the committee by theme.The Health & Safety Committee investigatesand deliberates on matters required by law.

Secretariat in charge of promotingactivities of each site

TaiyoYudenGroupSafety&EnvironmentCharter

Group’sMedium-termHealth&Safety/EnvironmentalTargets

OperationandOperationStandards

Accident&PerformanceReport ManagementReview

GroupSafety&EnvironmentalDocumentation

ResponsetoLegalRegulationsandMajorRisks On-SiteSafety&EnvironmentalAudits

ContinualImprovement

Plan

Plan

Do

Action

Check

Do Check Action(Review)Group’sOrganizationonHealth&

Safety/Environment EachSite

TaiyoYudenManagementPhilosophyCSRCharterandCodeofConduct

PublicDisclosure

Safety&EnvironmentalManagementSystem

TaiyoYudenGroupSafety&

EnvironmentCommittee

TGS*Committee

EnergyandResourceConservationCommittee

EachSiteofTaiyoYuden DomesticAffiliatedCompanies OverseasAffiliatedCompanies

Individual responsible for coordinating activitiesfor the entire Group

Health&SafetyCommittee

Safety&EnvironmentPromotionSecretariat

EachDivision

EnvironmentalSolutionsCommitteeHealth&SafetyCommittee

Safety&EnvironmentPromotionSecretariat

EachDivision

EnvironmentalSolutionsCommitteeHealth&SafetyCommittee

Safety&EnvironmentPromotionSecretariat

EachDivision

EnvironmentalSolutionsCommittee

Department that promotesthe activities of the entire group

Safety&EnvironmentalPromotionOffice

President

OfficerinChargeofSafety&EnvironmentalAffairs

* TGS: Taiyo Green Strategy

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Building Safety andEnvironmental Foundation

Our Efforts toward Improvingthe Environment

Approach to Health and Safety Efforts

03

Safety & Environmental Report 2016

Safety and EnvironmentalManagement System 2-2

CertificationAcquisitionStatusTaiyo Yuden Group has obtained ISO14001 certification for all production sites and development centers. Most sites of the Group have also obtained OHSAS18001 certification.

ListofCertificationsAcquired

Location NameofSites AcquiredISO14001Certification

AcquiredOHSAS18001Certification

Japan

TAIYO YUDEN CO., LTD. Takasaki Global Center, Yawatabara Plant, Tamamura Plant, Haruna Plant, Nakanojo Plant, R&D CenterTAIYO YUDEN ENERGY DEVICE CO., LTD.TAIYO YUDEN CHEMICAL TECHNOLOGY CO., LTD.TAIYO YUDEN TECHNO SOLUTIONS CO., LTD.WAKAYAMA TAIYO YUDEN CO., LTDKANKYO ASSIST CO., LTD.NIIGATA TAIYO YUDEN CO., LTD.TAIYO YUDEN MOBILE TECHNOLOGY CO., LTD.FUKUSHIMA TAIYO YUDEN CO., LTD.

3532082 (as of Oct. 1998)Collectively certified in Japan

3531737 (as of May 2001)Collectively certified in Japan(Except TAIYO YUDEN ENERGY DEVICE CO., LTD., KANKYO ASSIST CO., LTD., and FUKUSHIMA TAIYO YUDEN CO., LTD.)

SouthKorea

KOREA TAIYO YUDEN CO., LTD.KOREA TONG YANG YUJUN CO., LTD.KOREA KYONG NAM TAIYO YUDEN CO., LTD.

20BK00114-UK (as of Mar. 2002)

20BK00084-UK (as of Mar. 2002)

20BK00113-UK (as of Mar. 2002)

BK50172 (as of Oct. 2002)

BK50169 (as of Oct. 2002)

BK50173 (as of Oct. 2002)

China

TAIYO YUDEN (GUANGDONG) CO., LTD. 300593-UK (as of Dec. 2001) OH1419GZ (as of Jan. 2003)

TAIYO YUDEN (TIANJIN) ELECTRONICS CO., LTD. CN08/10665 (as of Aug. 2008) CN16/10165 (as of Jan. 2016)

Philippines TAIYO YUDEN (PHILIPPINES), INC. PH13/0920.00 (as of Nov. 2001) CH14/1329.00 (as of Nov. 2002)

Malaysia TAIYO YUDEN (SARAWAK)SDN. BHD. ER0280 (as of Oct. 2002) SR0198 (as of Sep. 2004)

BV

BV

BV

SGS

SGS

SIRIM

Certificationauthorities

Certificationauthorities

BV

BV

BV

SGS

SGS

SIRIM

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Building Safety andEnvironmental Foundation

Our Efforts toward Improvingthe Environment

Approach to Health and Safety Efforts

04

Safety & Environmental Report 2016

Safety and Environmental Audits

ExternalAudits

InternalSiteAudits

InternalAudits

OtherAudits

Tripleauditsevaluateeachsite’scompliance,accidentriskmanagement,andtheenvironmentalimpactsituationaimedatproducingcontinuousimprovement.

Sites with ISO14001 or OHSAS18001 certification underwent the audits required to update or maintain such certification. These audits uncovered 10 nonconformities. The root causes were analyzed and corrective action was promptly taken in response to each issue. The nonconformities were minor issues relating to our management systems, and were not directly linked with environmental pollution or occupational accidents.

In FY2015, audits were conducted at eight sites about health, safety, and environmental risks for preventing serious accidents. The following items were checked: drainage lines in sites (industrial wastewater, non-industrial wastewater, and rainwater) and identification of leakage risks; physical measures against leakage; preparation of emergency response procedures and providing training; measures for flammable chemicals; and electrical security control (risks of electrical shock and fire due to electrical leakage).As 15 non conformities including imperfect measures for leakage risks and electrical shock risks were found, new measures were implemented.By reflecting world-wide social requirements in a timely manner and benchmarking and sharing sites, we are improving the health & safety standards of the whole group.

The full-water alarm on a relay tank on the industrial wastewater drainage line was not regularly inspected.

The secondary container had insufficient capacity in the event of wastewater leakage.

Electrical equipment near water needs to be equipped with an earth leakage circuit breaker to prevent electrical shock. Some devices had no such breakers.

NonconformityExamplesandDetails Corrective/ImprovementMeasuresAlthough leakage incidents of non-medical deleterious substances and organic solutions were specified as emergencies, response capability training was not conducted.

▶Emergency response capability training assuming leakage of non-medical deleterious substances and organic solutions was conducted, and the procedure was reviewed.

Identification of risk sources and risk assessment for adjustment work using laser devices were not carried out. ▶

Risk sources were identified and risk assessment was conducted. Based on the work standard for handling laser devices, training was provided to workers.

Amounts of raw materials over the maximum permitted storage quantities were temporarily stored in the coating formulation room. ▶

Storing materials in the coating formulation room is prohibited. The new rule is that all such materials are to be put under inventory control at a designated place.

IssueExamples

NonconformityExamplesNumberofNonconformityInstancesFoundwithExternalAudits

All sites conducted internal audits of their departments in accordance with their management systems. Priority areas were determined for each site, and 19 non conformities were uncovered as a result of conducting internal audits (for the Group in Japan). Corrective action was completed in all cases without delay, and after a follow-up check, it was reported to the managers that the management system has been effective in complying with the Taiyo Yuden Group’s policies and goals.

On-siteinspectionofwastedisposalcontractors(SitesinJapan)FY2015 saw on-site inspections and audits of 21 operators: Seven waste collection and transporting companies, three waste collection and transporting/intermediate processers, eleven intermediate processors and one purchaser of items that have a resale value. As a result, it was confirmed that all inspected operators are processing and disposing of waste in an appropriate fashion. The operators have been classified into three ranks from the results of these inspections, with the frequency of future inspections varying depending on the rank of the operator.

ISO14001andOHSAS18001certificationauditsbycertificationauthorities

Auditsofsitesafetyandenvironmentalactivitiesatregularlyscheduledintervalsallowustocomparesites.

Auditstargetingsitedepartmentsonobservanceofsafetyandenvironmentlaws,targetachievement,andperformance.

Domestic sites: Once every two yearsOverseas sites: Once every three years

Between once and twice a year

Correction of nonconformity /

PreventionEnvironmental aspect

and hazards

Education and training

21 511

Responses to emergency

Operation management

Total:10

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Building Safety andEnvironmental Foundation

Our Efforts toward Improvingthe Environment

Approach to Health and Safety Efforts

05

Safety & Environmental Report 2016

Varioustypesofregularlyscheduledtrainingareimplementedtorespondtosuddenaccidents,disasters,andotherrisks,withtheobjectivesofearlydiscovery,rapidresponse,preventionandmitigation.TheTaiyoYudenGroupreconfirmsappropriateproceduresandstrivesforcontinuousimprovement.

Safety and Environmental Risk Management

FirefightingTraining

EmergencyTrainingforSpillageofChemicalSubstances

EvacuationandMedicalEmergencyTraining

RemovingSoilContamination

EnvironmentalAccidents

We completed our soil and ground water contamination surveys and made clean-up efforts following the Japanese Ministry of the Environment guidelines in 2003. No surveys were conducted in FY2015.

In May 2015, a fire broke out at a waste drop-off site of TAIYO YUDEN ENERGY DEVICE. Thanks to neighborhood residents’ early reporting, the damage was only a loss of things stored at the waste site. This incident was probably caused by hazardous materials mixing together and catching fire somehow. The rules for hazardous material control, from purchase and handling to disposal, was revised and recurrence prevention measures were implemented.

HARUNAPLANTWe participated in the fire extinguisher and fire hydrant parts of a first aid firefighting competition where we put our regular training to good use.

TAMAMURAPLANTTraining for a scenario in which heavy oil leaked into a gutter was conducted. We practiced cutting off a gutter and recovering leaked oil.

R&DCENTEREvacuation training assuming a fire was given.

YAWATABARAPLANTWe provided fire hose training using a hydrant twice this year.

TAIYOYUDEN(GUANGDONG)Organic solution leakage in a hazardous material warehouse was assumed, and diffusion prevention and recovery training was held.

TAIYOYUDENMOBILETECHNOLOGYFirefighting training was conducted jointly with a fire station. A fire engine, an ambulance, and a ladder truck were also dispatched.

KOREATAIYOYUDENCO.,LTDFire extinguisher training using a real test fire was conducted.

TAIYOYUDEN(PHILIPPINES)Based on a scenario in which chemical substances had leaked on the plant premises, training for recovering them using dry sand was conducted.

KOREAKYONGNAMTAIYOYUDENCardiopulmonary resuscitation (CPR) training was given to 40 employees.

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Building Safety andEnvironmental Foundation

Our Efforts toward Improvingthe Environment

Approach to Health and Safety Efforts

06

Safety & Environmental Report 2016

Employee Enrichment through Safetyand Environmental Training

TrainingStructure

TrainingExamples

Weprovideavarietyoftrainingprogramscoveringbothgeneralandspecializedknowledgetopromoteemployees’awarenessofpreventingoccupational injuriesandwork-related illness,aswellasactiveparticipationinenvironmentalconservation.

GeneralTraining

OccupationalHealthandSafetyTraining

EnvironmentalTraining

OccupationalHealthandSafetyEventWe hold various events relating to health and safety at all our sites. These are opportunities to improve the health and safety awareness of our employees. Events such as lifesaving training, health classes, a health-keeping fair, and a salad bar for learning the necessity of eating lots of vegetables were held.

Electricalsafetylecture/WorkenvironmentmanagementclassA lecturer invited from the Kanto Electrical Safety Services Foundation gave a lecture on electrical safety. This included demonstrations of short-circuit and overcurrent experiments. Participants learned how to use electrical power correctly.We participated in the work-environment management class hosted by the Gunma Industrial Health Comprehensive Support Center. We learned how to use instruments such as noise level meters and dust meters. We also practiced wearing protective masks and earplugs correctly.

TrainingofwastewatertreatmentfacilitymanagersIn order to operate wastewater treatment facilities more properly, educational training on the inner workings of wastewater treatment facilities, assessment and judgment of changes in wastewater, and emergency response procedures was given to wastewater treatment facility managers.

TrainingonenvironmentalmeasurementworkKANKYO ASSIST, an environmental measurement institution and a subsidiary company, provided training on practical skills for environmental measurements of atmosphere and water quality. Participants learned measurement basics and how to use practical analyzers and instruments, some of which were brought for trainees to see.

Purpose MainSubjectsRaising new recruits' awareness of occupational health & safety and environmental preservation, and ensuring they understand environmental problems pertinent to companies

General theory of Safety & Environment / Status of Safety & Environment at the Taiyo Yuden Group

Deepening all employees' understanding of the Taiyo Yuden Group Safety and Environment Charter and Course of Action and teaching them the skills to act accordingly

Management system (including the Safety and Environment Charter) / Mental health

Understanding potential hazards and environmental impact with regard to divisionalhealth and safety/environmental activities and work

Division activities / Matters for compliance in work

Deepening understanding of the role of the duty for employee safety required by legal regulations

Role of the General Manager of Health and Safety /Role of management

Teaching foremen skills to instruct their subordinates in health and safety Role of foreman / Chemical substance management / Hazardous material management

Teaching of specialized skills to operators of forklifts, cranes, and other heavy equipment, as well as managers of processes that handle organic solvents and the like, and employees involved in these tasks

Workplace restricted duties / Training for specific tasks / Prevention of static electricity accidents

Teaching special skills to managers and relevant employees involved with equipment and facilities for which a legal notification is required

Management to prevent deterioration of water quality / Management to prevent air pollution / Waste management

Training skills to integrate business activities with environmental activities in order to balance an improvement in our environmental impact with improved resource productivity

Chemical substances and their environmental impact / Environmental targets / Cases of environmental improvements / Causes of environmental accidents and their countermeasures

Name

GeneralTraining

Training for new recruits

General training

Workplace training

Health & SafetyTraining

Training for managers

Training for instructorsand supervisors

Training for specialists

EnvironmentalTraining

Training for specialists

Specialized training

Salad barUsing exercise bands at a health class

Work environment management classElectrical safety lecture

Training of wastewater treatment facility managers

Training on environmental measurement work

Training of wastewater treatment facility managers

Training on environmental measurement work

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Building Safety andEnvironmental Foundation

Our Efforts toward Improvingthe Environment

Approach to Health and Safety Efforts

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Safety & Environmental Report 2016

Environmental Accounting

EnvironmentMaintenanceCosts

EnvironmentMaintenanceEffectiveness

TrendsinEnvironmentalAccounting

TheTaiyoYudenGrouppromotesaneffectiveenvironmentalmanagementbyadoptingenvironmentalaccountingtomakeclearwhatresourcesourdomesticsitesapplytotheirenvironmentalpreservationactivities.

FY

(million yen) Effectiveness

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2011 2012 2013 2014 2015

Costs

1,9201,845

1,074

1,351

1,843

1,294

1,915

1,460

976924

EnvironmentalAccountingStandards

Lowered costs through reducing waste and recycling =

[Unit cost of waste treatment in the prior fiscal year (JP¥/ton) – Unit cost of waste treat-

ment in this fiscal year (JP¥/ton)] × Amount of waste generated (tons)

1. The sum total of the costs for complying with environment-related laws and regulations, the costs incurred purely for the purpose of improving our environmental impact, and the EMS operation costs are calculated. However, in cases where environmental preservation costs partially overlap the costs for other purposes, the latter shall be deducted and the balance shall be applied.

2. Depreciation costs shall be the current fiscal year's depreciation expenses at the environmental conservation facilities.

3. If a clear-cut distinction cannot be made between the environmental cost and that for other purposes, if 50% or more of the content is environment-related, the full amount can be counted as the environmental preservation cost.

4. The cost-effectiveness by saving energy is yielded from the reduction of either the rated dissipation or the operating time or both.

5. The cost-effectiveness by reducing and recycling waste is calculated as follows:

Expenses(million yen)

Investment(million yen)

Main items

574 301

255 262 Monitoring and measurement of atmosphere, water quality, noise, and vibration; emergency preparedness and response

121 39 Curbing emission of greenhouse gases; curbing emission of ozone-depleting substances; improvements in waterquality; exhaust gas cleaning; energy saving; resource saving

198 − Waste management, and outsourcing of waste treatment; reduction of waste; recycling

4 − Activities to improve the environmental impact of products, green procurement

234 − Building and operating an EMS; surveillance audits; environmental training; costs for operating secretariat;department operations costs

338 − R&D costs to improve the environmental impact of product processes etc.

9 − Donations to environmental groups; participation in communities' global environmental preservation events

0 −

1,159 301

Economic effect(million yen)

Effects on amounts*

Main items

126 2,766kL Improvement in productivity; improvement in energy management method

2 1t Reduction in amount of chemical substances used through improvement in process yield etc.

796 2,585t Improvement in recycling rate

924 *”Effects on amounts” indicate the calculated difference with the case where no activities are conducted to improve our environmental impact.

Type of cost

Business unit area costs

Brea

kdow

n Pollution prevention

Conservation ofglobal environmentResource recyclingcosts

Upstream / downstreambusiness activities

Management activity costs

R&D

Social activities

Response to environmentaldamage

Total

Type of effectiveness

Energy saving

Conservation of resources

Reduction in waste, and recycling

Total

Wecalculatetheeconomiceffectsonlyforthoseactivitiesclearlyimprovingourenvironmentalimpact.

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Safety & Environmental Report 2016

Determining Environmental Impact of Corporate Activities

FY2015MaterialBalance

Detailedunderstandingandanalysisoftheenvironmentalimpactofcorporateactivitiesisaprerequisitetodevisingvariousmeasurestoimprovethis.

The Taiyo Yuden Group primarily produces electronic components for delivery to our customers, set manufacturers. These electronic components have a life cycle with only a small environmental impact during use. The bulk is during production, with the main environmental impact arising from energy and water consumption, emissions (including CO2) in the course of manufacture, waste and waste water. The Taiyo Yuden Group is striving to improve our environmental impact by first identifying and analyzing in detail this environmental impact and then taking such measures as minimizing the resources applied and conserving other energy and resources by improving production processes. Taiyo Yuden Group products are used in electrical and electronic equipment, automobiles, and other products which become waste once their product lifetime is over. We are therefore also striving to remove toxic substances from these products.

ReasonsforChangesfromFY2014

In FY2015, electrical power consumption increased due to an increase in production both in Japan and overseas. Consumption of heavy oil and light oil decreased because of the effective progress in energy source conversion from oil to town gas.

INPUT OUTPUT

R&D/Design

MaterialProcurement

Sales/Logistics

Production

Building Safety andEnvironmental Foundation

Our Efforts toward Improvingthe Environment

Approach to Health and Safety Efforts

Rawmaterials(Includingrecycling)

Products

Atmosphere

Waste

Wastewater

Electricity 775.490kWhHeavy fuel oil 2,869kLDiesel 264kLKerosene 1,385kLGasoline 215kLLP gas 1,504tTown gas 7,575,000m3

Resin materials

Inorganic materials

Organic solvent

etc.

Capacitors

Inductors

Modules

Recording media

etc.

CO2* 31,667tNOx 50tSOx 246t

Recycling 18.5ktFinal disposal 1.7kt

Industrialwastewater 3,910,000m3

Domesticwastewater 206,000m3Tap Water 3,842,000m3

Groundwater 490,000m3

* Excluding CO2 emission equivalent of electricity

Total emission: 20.2ktRecycling rate: 91.8%

million

Energy

BusinessActivitiesofTaiyoYudenGroup

Water

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Safety & Environmental Report 2016

Achievement Levels forMedium-Term Environmental Targets

TaiyoYudenGroupEnvironmentalTargetsandResults

Wesetmedium-termenvironmentaltargetsfortheGroupoverall.Ourenvironmentalimpactimprovementeffortsareimplementedoverallsites.

We set targets for improving our environmental impact over the 5-year period from FY2011 to FY2015, and made efforts toward achieving them. Specifying medium-term environmental targets for each business unit, site, and division has helped ensure active participation at each level. All items of the Medium-term Environmental Targets have been achieved.

Environmentalriskmanagement Global

Compliance with applicable environmentallaws and regulations

We achieved the mid-term target.The Group has complied with all categories of applicable laws and regulations. ○

Maintain zero accidents that affect theecosystem and carry out ongoing training

We achieved the mid-term target.No accidents that affect the ecosystem occurred and we conducted emergency response trainings regularly. ○

Contributingthroughenvironmentallyfriendlyproducts

Global

Develop "green products"We achieved the mid-term target.We have continued to develop green products that reduce environ-mental impacts through downsizing and other methods. ○

Reduce environmental impact pereach product

We achieved the mid-term target.We have reduced the environmental burden per product by improv-ing our production conditions, methods, and equipment. ○

Regulatory compliance for chemicalscontained in products (RoHS, ELV, REACH)

We achieved the mid-term target.The Group has complied with regulatory restrictions of chemicals contained in products. ○

Curbingglobalwarming Global

10% improvement in "average energyconsumption per unit" (weighted averageby business unit) over FY2011-FY2015compared with FY2008-FY2010

We achieved the mid-term target.We improved by 39.8% on average during the period of FY2011-15, clearing the target of 10%. ○

PreservingbiodiversityEffectiveuseofresourcesby"Reducing"consumption

Global

5% improvement in "average wastegeneration per unit" (weighted averageby business unit) over FY2011-FY2015compared with FY2008-FY2010

We achieved the mid-term target.We improved by 30.1% on average during the period of FY2011-15, clearing the target of 5%. ○

10% improvement in "average water useper unit" (weighted average by businessunit) over FY2011-FY2015 compared withFY2008-FY2010

We achieved the mid-term target.We improved by 41.6% on average during the period of FY2011-15, clearing the target of 10%. ○

PreservingbiodiversityEffectiveuseofresourcesby"Reuse"and"Recycling"

Global5% improvement in "average final disposalvolume per unit" (weighted average bybusiness unit) over FY2011-FY2015compared with FY2008-FY2010

We achieved the mid-term target.We improved by 47.0% on average during the period of FY2011-15, clearing the target of 5%. ○

Japan Recycle 99.5% of waste or moreWe achieved the mid-term target.We achieved 99.8% in FY2015, clearing the target of 99.5%. ○

PreservingbiodiversityNatureconservationinlocalarea

Global Continue to carry out nature conservationactivities in local area (in forests etc.)

We achieved the mid-term target.We continued to conduct tree-planting activities and con-servation activities at Taiyo no Mori (Forest of Taiyo Yuden) and Taiyo-yama (Mountain of Taiyo Yuden).

Medium-Term(FY2011toFY2015)EnvironmentalTargets Results(FY2011toFY2015) Evalua-

tion

* Weighted average: An average in which each quantity to be averaged is assigned a weight.

Building Safety andEnvironmental Foundation

Our Efforts toward Improvingthe Environment

Approach to Health and Safety Efforts

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Safety & Environmental Report 2016

New Medium-term Environmental Targets

FY2015wasthefinalfiscalyearoftheMedium-termEnvironmentalTargets.WehavesetnewMedium-termEnvironmentalTargetsforthe5-yearperiodfromFY2016toFY2020.

Action Appliedto Medium-termtargets

Environmentalriskmanagement Global

Compliance with applicable environmental laws and regulations

Maintain zero accidents that affect the ecosystem and continue to carry out training

Contributingthroughenvironmentallyfriendlyproducts Global

Develop "smart products"

Reduce the environmental impact per product.

Regulatory compliance for chemicals contained in products (RoHS, ELV, REACH)

Curbingglobalwarming Global5% improvement in average energy consumption per unit (weighted average by business unit) over FY2016-FY2020 compared with FY2011-FY2015

Preservingbiodiversity;Effectiveuseofresourcesbyreducingconsumption Global

5% improvement in average waste generation per unit (weighted average by business unit) over FY2016-FY2020 compared with FY2011-FY2015

5% improvement in average water use per unit (weighted average by business unit) over FY2016-FY2020 compared with FY2011-FY2015

Preservingbiodiversity;Effectiveuseofresourcesbyreuseandrecycling

Global10% improvement in average final disposal volume per unit (weighted average by business unit) over FY2016-FY2020 compared with FY2011-FY2015

Japan Recycle at least 99.5% of waste

Preservingbiodiversity;Natureconservationinlocalareas Global Continue to carry out nature conservation activities in local areas, such

as in forests

NewMedium-termEnvironmentalTargets

Substantialunitconsumptionpersales

Example: Water consumptionSubstantial unit consumption per sales

=Water consumption

Sales of Group× Corporate goods price index *

*: BOJ’s FY2000-base domestic corporate goods price index (electronic components)

Building Safety andEnvironmental Foundation

Our Efforts toward Improvingthe Environment

Approach to Health and Safety Efforts

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Safety & Environmental Report 2016

FY

(thousand kL)

Energy consumption (domestic)Energy consumption (overseas)

0

50

100

150

200

250

2011 2012 2013 2014

81117

2015

89121

8712595

105

91113

Curbing Global Warming

Resultsofeffortstoreducegreenhousegasesandenergyconsumption

Therearethreecategoriesforgreenhousegasesemittedduringthecourseofbusinessactivities:Directemissionsfromuseofenergy(SCOPE1),Indirectemissionsfromenergyuse(SCOPE2)andIndirectemissionsotherthanfromenergyuse(SCOPE3).Greenhousegasemissionscannotbeeasilymeasured,soweconcentrateonenergyuseandreducingenergyconsumption.

In FY2015, the Group’s overall greenhouse gas emissions increased year-on-year by 3 kilotons-CO2e. This figure includes a decrease from 200 kilotons-CO2e to 195 kilotons-CO2e at domestic sites and an increase from 285 kilotons-CO2e to 293 kilotons-CO2e at overseas sites compared with FY2014 (see G1).Energy consumption for the Group overall increased by 2,000 kiloliters from FY2014. This figure includes a decrease from 89,000 kiloliters to 87,000 kiloliters at domestic sites and an increase from 121,000 kiloliters to 125,000 kiloliters at overseas sites compared with FY2014 (see G2).The breakdown of energy consumption was 93% in SCOPE 2 and 7% in SCOPE 1 (See G3).The average energy consumption per unit of the environmental medium-term target improved by 39.8% for FY2011-15 (see G4).We will continue to work on reviewing production processes, especially those for our major products, in order to further improve production efficiency and reduce total energy consumption.Note: Changes in the conversion factor have a major impact on greenhouse gas calculations, so the medium environmental targets were set according to energy consumption (crude oil equiva-

lent), a factor that has measure able results.Note: Greenhouse gas emissions are calculated using GHG Protocol factors (electricity by country).

G1:GreenhouseGasEmissions(calculatedfromtotalenergyconsumption)

G3:BreakdownofEnergyConsumption(crudeoilequivalent)

G2:EnergyConsumption(crudeoilequivalent)

G4:AverageEnergyConsumptionPerUnit(resultscomparedtotarget)

FY

(1,000t-CO2e)GHG emissions (domestic)GHG emissions (overseas)

Emission per sales unit

0

100

200

300

400

500

2011 2012 201520142013

195252

206271

200285

195293183

275

2.43 2.47

2.20 2.132.03

0

1

2

3

-10

0

10

20

30

40

Base 2011 2012 2013 2014 2015 FY

(%) Rate of improvement compared to the reference year (Activity year average)

39.8% improvement

Target: 10% improvement

SCOPE 1 (petroleum, gases)

SCOPE 2 (electricity)

93%

7%

EffortsonIndirectEmissionsOtherthanfromEnergyUse(SCOPE3)We have ascertained that our greenhouse gas emissions from purchased goods/services were 293 kilotons-CO2e (group), 6,934 tons-CO2e (domestic sites) from commutes, 514 tons-CO2e from business trips (domestic sites), 4,263 tons-CO2e from disposal and processing of waste (domestic sites) and 27,058 tons-CO2e from transporting products (group).

Building Safety andEnvironmental Foundation

Our Efforts toward Improvingthe Environment

Approach to Health and Safety Efforts

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Safety & Environmental Report 2016

Reducing Waste /Preserving Water Resources 2-1

ResultsofReducingWaste

Westrivetoreduceenvironmentaleffectonbiodiversitywhilecoexistingwithnature,andweusethe3Rs(reduce,reuse,recycle)toreducewasteandmakeeffectiveuseofwaterresources.

In FY2015, the Group’s overall waste volume increased from 19.5 kilotons in FY2014 to 20.2 kilotons. This increase was due to factors such as an increase in production volume (see G1).The figures for waste, including items that have resale value, reveal that the largest shares are for plastic refuse, sludge, and waste paper (see G2).Domestic final disposal volumes decreased from 0.029 kilotons in FY2014 to 0.018 kilotons. The waste recycling rate of the environmental medium-term target increased to 99.8% from 99.5% (see G3).Overseas final disposal volumes decreased from 1.6 kilotons in FY2014 to 1.7 kilotons (see G4).The waste generation per unit of the environmental medium-term target improved by 30.1% on average for FY2011-15 (see G5). The final disposal volume per unit improved by 47.0% on average for FY2011-15 (see G6).We will continue working to reduce waste volumes, boost in-house recycling rates, and recycle waste into resources at our overseas sites.

G1:AmountofWasteGeneration

G4:OverseasFinalDisposalVolumesandRecyclingRates

G2:BreakdownofWaste

G3:DomesticFinalDisposalVolumesandRecyclingRates

FY

(kilotons)Amount of waste generation (domestic)Amount of waste generation (overseas)

0

5

10

15

20

25

2011 2012 2013 2014 2015

9.211.2

7.211.6

5.712.8

6.213.3

7.312.9

Wood chips /Glass and pottery shards

Sludge

1% each

Definition of waste: general waste, industrial waste, and items having resale value.

48%

16%

10%9%

6%9%

Waste liquids

Scrap metal

Waste oil

Scrap paper

Plastic refuse

Sludge

FY

(kilotons)Final disposal volume

Final disposal volume

Recycling rate

Recycle rate

0.00

0.05

0.10

0.15

0.20

2011 2012 2013 2014 2015

(%)

0.024

0.007

0.0290.017 0.018

96

97

98

99

10099.9

99.7

99.799.5

99.8

FY

Final disposal volumeRecycling rate

(kilotons)

Final disposal volume

Recycle rate

0

1

2

3

4

2011 2012 2013 2014 2015

(%)

2.6

2.02.3

1.6 1.7

72

75

78

81

84

87

90

83

8887

82

77

Building Safety andEnvironmental Foundation

Our Efforts toward Improvingthe Environment

Approach to Health and Safety Efforts

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Safety & Environmental Report 2016

Reducing Waste /Preserving Water Resources 2-2

ResultsofWaterResourceEffortsIn FY2015, the Group’s overall water use increased from 4,059,000 cubic meters in FY2014 to 4,332,000 cubic meters. This figure includes a decrease from 1,743,000 cubic meters to 1,662,000 cubic meters at domestic sites, and a decrease from 2,316,000 cubic meters to 2,670,000 cubic meters at overseas sites compared with FY2014 (see G7).Water use per unit of the environmental medium-term target improved by 41.6% on average for FY2011-15 (see G8).The amount of recycled water was 427,000 cubic meters.

G5:AverageWasteGenerationPerUnit(resultscomparedtotarget)

G7:WaterUse

G6:AverageFinalDisposalVolumePerUnit(resultscomparedtotarget)

G8:AverageWaterUsePerUnit(resultscomparedtotarget)

FY

(thousand m3)

Water use (domestic)Water use (overseas)

0

1,000

2,000

3,000

4,000

5,000

2011 2012 2013 2014 2015

1,3512,514 1,365

2,3731,2342,330

1,7432,316

1,6622,670

Base FY

Rate of improvement compared to the reference year (Activity year average)

0

10

20

30

40

50

2011 2012 2013 2014 2015

(%)

30.1% improvement

Target: 5% improvement

Base FY

Rate of improvementcompared to the reference year (Activity year average)

0

10

20

30

40

50

2011 2012 2013 2014 2015

(%) 47.0% improvement

Target: 5% improvement

Base FY

Rate of improvement compared to the reference year (Activity year average)

0

10

20

30

40

50

2011 2012 2013 2014 2015

(%)

41.6% improvement

Target: 10% improvement

ResultsofReducingWaste

Building Safety andEnvironmental Foundation

Our Efforts toward Improvingthe Environment

Approach to Health and Safety Efforts

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Safety & Environmental Report 2016

Our Efforts

ReducingGreenhouseGasEmissions

Others

ReducingWaterUse

Energy saving through a centralized vacuum system for clean room[WAKAYAMATAIYOYUDEN]A new centralized vacuum system has been built by integrating the old system (decentralized type) in which each piece of equipment had its own vacuum pump. Installing a vacuum pump in a place far enough away from the production line floor reduced the air conditioning load, and resolved problems related to noise, dust, and maintenance.The GHG emissions decreased by 64 tons-CO2e per year.

Reducing water use by updating a water purifier[TAIYOYUDENMOBILETECHNOLOGY]As a water purifier had become too old to handle the current scale of production, it was updated to accommodate the current amount of water use. Its deionization device eliminated the use of chemicals, reducing the environmental load. Because of its structure made of subsystems, the new water purifier system takes up less space and the stability of the water quality has improved.The water use decreased by 30,552 tons per year.

Reduction in waste generation[TAIYOYUDENCHEMICALTECHNOLOGY]Punching debris generated by the production line had been treated as industrial waste. It is now treated according to the noble metal refining recovery method and is recycled, reducing industrial waste.The industrial waste decreased by 17 tons per year.

Energy saving by using exhaust heat to supply air to the printing machine[NIIGATATAIYOYUDEN]Recycling 60°C exhaust heat from a printing machine through a heat exchanger for the air supply to the machine reduced the power and gas consumption of its heater.The GHG emissions decreased by 346 tons-CO2e per year.

Waterpurifier

Noblemetalrefining

Heat exchanger

Vacuum pumpCentralized vacuum system

Flow chart of the system

Hot water

Manufacturing equipment FHHeater

Air supply

Heatexchanger

Exhaust air

Exhaust fan

Heatexchanger

Building Safety andEnvironmental Foundation

Our Efforts toward Improvingthe Environment

Approach to Health and Safety Efforts

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Safety & Environmental Report 2016

Appropriate Management of ChemicalSubstances

ChemicalManagementFramework

PRTRLawCompliance

Ozone-depletingSubstances

The Taiyo Yuden Group has adopted its own Chemical Substances Control Standards. These standards define which substances are to be prohibited, reduced, and managed.To tighten up control, we set up a chemical substances management structure specifying the persons in charge and their responsibilities.

In order to reduce the risks that chemicals impose on the environment, the Taiyo Yuden Group reports to the government the amounts of chemicals released to the environment (air, water, and soil), and waste chemicals transported and recycled under the Japanese Law for Pollutant Release and Transfer Register (PRTR). The government publishes the records and a database of these quantities making them widely available to members of the general public.

We do not use ozone-depleting substances in our production processes. Although we use HCFC as a coolant in air conditioners and other equipment, we carry out appropriate collection and disposal.

Towardoffenvironmentcontaminationwithchemicalsandadverseeffectsonhumanhealth,wehavebannedtheuseofforbiddensubstances,implementedachemicalmanagementframework,andareworkingonreducingemissionvolumes.

PRTRRestrictedSubstances

Prohibitedsubstances Cadmium, compounds containing cadmium, mercury, compounds containing mercury, hexavalent chromium compounds, etc.

Substancestoberestricted Lead in ceramic in capacitors, lead in ceramic or glass frit, dibutyltin compounds, etc.

Substancestobereduced Toluene, REACH SVHC (substance of very high concern), xylene, etc.

SubstanceNumber

Chemical Substance NameEmission(ton/year)

Amount Transferred(ton/year)

Amount Recycled(ton/year)

71 Ferric chloride 0.0 29.5 0.0

82 Silver and its water-soluble compounds 0.0 1.2 12.1

87 Chromium and trivalent chromium compounds 0.0 0.4 0.6

272 Water-soluble copper salt 0.0 0.2 0.1

300 Toluene 16.3 7.1 27.1

SubstanceNumber

Chemical Substance NameEmission(ton/year)

Amount Transferred(ton/year)

Amount Recycled(ton/year)

306 Hexamethylene diacrylate 0.0 0.1 0.3

308 Nickel 0.1 0.5 30.0

309 Nickel compounds 0.5 4.2 18.4

405 Boron compound 0.5 1.2 0.0

438 Methylnaphthalene 0.1 0.0 0.0

Note: Target chemical substances and their incoming amount shown refer to substances for which their incoming amount exceeds 1 ton in compliance with the PRTR Law.Emission: This refers to the total emission into the atmosphere, water, and soil.Amount Transferred: This refers to the amount whose disposal is outsourced to an industrial waste contractor outside the business facility concerned.

Building Safety andEnvironmental Foundation

Our Efforts toward Improvingthe Environment

Approach to Health and Safety Efforts

TargetChemicals

*TGS: Taiyo Green Strategy

Supervises chemical substance management for his/her business unit, based on its activities

Comply with theChemical Substances Control Standards

Consider replacements for restricted substances and those to be reduced,product assessment for new products

Prevent the purchase of components containing toxic substances, in compliance with green procurement

Gathers information on chemical substances relating to laws, regulations, customer’s needsand requirements, etc., and updates and maintains chemical substance management

Body in charge of discussing and examining activity policies for chemical substance management

Officer responsible for organizing the whole management of chemical substances (Officer in charge of Quality)

Individual responsible for coordinating activities ofhis own business unit

Promotes the activities of the entire group (Products and Environment Division)

TGS*Committee

Chairman

GeneralManager Secretariat

ManufacturingDivisions EngineeringDivisions MaterialsProcurementDivisions

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Safety & Environmental Report 2016

Achievement Levels for Medium-TermOccupational Health and Safety Targets

FundamentalPrincipleofSafety&HealthandTargets

FY2015Work-relatedAccidentsandSafetyIndicators

In order to realize our health and safety philosophy of “creating a workplace where employees can work without anxiety,” the Taiyo Yuden Group has drawn up group-wide medium-term plans. The medium-term plan is set to prevent industrial accidents by clarifying action targets for each 5Ms (Man, Machine, Method, Material, Measurement) and by setting a target incidence rate of injuries and illness for numerically evaluating the result of such efforts.

In FY2015, the medium-term target regarding the incidence rate of injuries and illness for the entire Group was less than 0.04, and we were able to achieve this by resulting in 0.03 (see G1). In FY2015, the accident frequency rate for the entire Group was 0.15 (see G2), and the danger ratio was 0.0005. We are promoting countermeasures for occupational accidents and occupational disease by conducting risk assessments in all workplaces. We found no workplace with high-risks. We will continue to work on activities geared toward zero work-related accidents in terms of 5Ms based on the medium-term health and safety plan for the future.

AllemployeesparticipateinhealthandsafetyeffortsbasedontheFundamentalPrincipleofSafetyandHealthoutlinedintheTaiyoYudenGroupSafetyandEnvironmentCharterandimplementedaccordingtoOHSAS18001specifications.

G1:Trendsinincidencerateofinjuriesandillness G2:TrendsinAccidentFrequencyRate

Total actual number of hours worked by registered workers

Number of the victims of industrial accident (at least one workday lost)

= × 1,000,000

Taiyo Yuden Co., Ltd. (Group as a whole)

FY

Target : Less than 0.04

0.00

0.01

0.02

0.03

0.04

0.05

0.06

2013 2014 2015

0.02

0.03 0.03

Taiyo Yuden Co., Ltd. (Group as a whole)Manufacturing

FY0.0

0.2

0.4

0.6

0.8

1.0

1.2

2011 2012 2013 2014 2015

0.09 0.100.15 0.15 0.15

1.05 1.00 0.941.06

Building Safety andEnvironmental Foundation

Our Efforts toward Improvingthe Environment

Approach to Health and Safety Efforts

5MsforFY2013-FY2015Medium-termTargets

Man •Creationof“Safeworkplace”culture

Machine •Reachingfortheworld’sstandardslevel

Method •Standardizationofproceduresforsafework

Material •Minimizationoftoxicityanddangerofchemicalsubstances

Measurement •Strengtheningofcheckingsystem

FY2015Targets Achievementlevels

Incidencerateofinjuriesand

illness

Incidencerateofinjuriesand

illness

AccidentFrequencyRate

lessthan

0.04 0.03

Medium-term Plan TaiyoYudenGroupOccupationalHealthandSafetyManagementPlan

In order to ensure the well-being of our workers, who are an important resource of the company, we shall pursue workplaces which always maintain safety and where employees can work in confidence while maintaining the health of our workers.

Total actual number of hours worked by registered workers

Number of the absentees due to industrial accident (at least one workday lost)( ) )( Number of the absentees due to occupational

injury (at least one workday lost)=

+× 200,000

Incidencerateofinjuriesand

illness

PrincipleofSafety&Health

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Safety & Environmental Report 2016

New Medium-term Occupational Health and Safety Target (FY2018 Medium-term Targets)

NewMedium-termOccupationalHealthandSafetyTarget(FY2018Medium-termTargets)As FY2015 was the closing year of the Medium-term Environmental Targets set for FY2013-FY2015, we assessed and analyzed our achievements compared with the targets, and have set new Medium-term Environmental Targets (FY2018 Medium-term Targets).To eliminate unsafe states and unsafe behaviors that cause occupational accidents, we clarified a 3-year program that improves health and safety activities for each of the 5Ms (Man, Machine, Method, Material, Measurement), areas we have been working on.In the future, we will carry out activities in accordance with these new Medium-term Occupational Health and Safety Targets. We will promote specific actions toward zero occupational accidents and serious risk reduction so the culture of safety can take root.

= ×200,000

Building Safety andEnvironmental Foundation

Our Efforts toward Improvingthe Environment

Approach to Health and Safety Efforts

EffortsforMedium-termTargets

Man •Creationofasafeworkplaceculture

Machine •World-class(ISO,IEC)machinesafetyactivities

Method •Standardizationofproceduresforsafework

Material •Minimizationoftoxicityanddangerofchemicalsubstances

Measurement •Deepeningqualitylevelchecks

FY2018Targets

Incidencerateofinjuriesand

illness

lessthan

0.04

Incidencerateofinjuriesandillness

Total number of actual work hours of registered workers

[Number of absentees due to industrial accidents (at least one workday taken off)]

[Number of absentees due to occupational injury (at least one workday taken off)]+

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Safety & Environmental Report 2016

Efforts and Status 2-1

Man

Machine

Material

Measurement

Creation of “Safe workplace” cultureIn order to create “Safe workplace” culture, the Group mainly carried out the following activities in FY2013 to FY2015. As a result, employee learned the basics of safety and are now always aware of health and safety.

All business sites promoted the “declaration of five safety actions that protect oneself” that ensures that each employee is aware of safety to prevent unsafe behaviors, and carried out activities to make the idea known to all.

We redesigned the safety training program and gave more practical training to supervisors who play a key role in health and safety activities at workplaces. The training improved workplace supervisors’ skills.

We introduced a method of boosting employee’s safety awareness (pointing and calling), and carried out practical safety promotion activities to decrease human errors.We carried out training using a health and safety training textbook (in each local language) common to all Group companies at all Group sites worldwide. This improved

employees’ sensitivity to danger and knowledge of safety measures.

Raising the activity quality to the world’s standard levelIn order to upgrade our machine safety promotion activities to the world’s standard level, we mainly carried out the activities shown below in FY2013 to FY2015. As a result, machine safety experts’ advice and assessments improved machine safety across the Group, reducing occupational accident risks.

We trained machine safety experts (qualif ied safety assessors and sub-safety assessors) to strengthen the operational structure that promotes machine safety. In addition, we gave machine safety training to about 200 machine designers.

We surveyed the trends of regulations and standards related to machine safety worldwide and reflected the results in our Machine Safety Standards to improve the safety level.

Carrying out machine safety assessment from the viewpoint of machine safety experts improved the accuracy of assessment based on the Machine Safety Standards.

Minimization of toxicity and danger of chemical substancesIn order to minimize the toxicity and danger of chemical substances, we mainly carried out the activities shown below in FY2013 to FY2015. As a result, operations handling chemical substances have become safer, reducing occupational accident risks.

We implemented visualization of the toxicity and danger of chemical substances by putting toxicity and danger indications on chemical substance containers, and establishing and introducing a unified rule for better indications such as the contents of pipes.

We assessed fire and explosion risks due to electrostatic discharge in electric equipment at places where large amounts of chemical substances are used or stored and implemented preventive measures based on the results.

We have specified quick response procedures for accidents such as chemical substances getting splashed on human bodies. Eye washers and showers have been installed at relevant places.

The method of training supervisors in chemical substance-handling workplaces was reviewed. They were reminded of their roles and responsibilities, and improved their management skills.

Strengthening safety check systemIn order to strengthen our safety check system, we mainly carried out the activities shown below in FY2013 through FY2015. As a result, our Occupational Health and Safety Inspection (Health and Safety patrol) improved, problems were visualized, and implementation of measures became much quicker.

We held seminars to learn skills for Occupational Health and Safety Inspections. Strictly applying the Genba, Genjitsu, Genbutsu (actual place, actual situation, and actual product) principle helped participants improve their patrol skills.

An audit team consisting of health and safety experts and specialist engineers visited each site to check the safety status, and gave instructions for improvement from experts’ objective viewpoints.

Information on places evaluated as excellent was shared among related business sites, and the overall level of activity was upgraded.

KikenYochi (KY) (predict danger)andpointingandcalling

Healthandsafety training textbook(Chineseedition)

Trainingqualifiedsafetyassessors(SA) MachinesafetyassessmentbySAs

Exampleofergonomicsmeasures

Eyewasher Trainingofchemicalsubstancehandlingsupervisors(Improvementmeasuresbyusinglocalventilation)

Powerlockout

MethodStandardization of procedures for safe workIn order to standardize safe work, we mainly carried out the activities shown below in FY2013 to FY2015. As a result, work procedures including irregular work have become safer, reducing occupational accident risks.

Health and safety staff investigated sources of risks in secondary tasks (such as preparation, setup, and cleanup) to confirm the effectiveness of risk measures.

Lockout and tag out procedures were introduced for high-risk tasks to enhance measures for avoiding risks while performing dangerous tasks.By introducing a rule for the implementation of ergonomics measures (reducing burden on the human body), we assessed tasks that put excessive burden on the human

body and implemented the measures employees’ sensitivity to danger and knowledge of safety measures.

Workplacepatrol Workplacepatrol

Building Safety andEnvironmental Foundation

Our Efforts toward Improvingthe Environment

Approach to Health and Safety Efforts

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Safety & Environmental Report 2016

Efforts and Status 2-2

Health① Maintaining low incidence ratio for mental health problemsIt has been over ten years since the group introduced a mental healthcare program. During this period, our mental healthcare system has advanced through support activities such as counseling, line care training, support for leaves of absence and returning to work, and stress checks using a Web system.In FY2015, we provided line care training for all supervisors for acquisition of basic knowledge on mental health and harassment prevention. The same training was provided to all managers in the preceding year.As part of our staff care program, industrial healthcare personnel such as counselors, nurses and public health nurses are stationed on site to detect signs that employees are not well as soon as possible through detailed counseling, and properly support them. In addition, collaborating psychiatrists, industrial physicians, and clinical psychotherapists are invited to give lectures on mental health at study meetings of the industrial healthcare staff. This is expected to enrich our healthcare system further.The incidence ratio of mental health problems was 0.45% in FY2015 (decrease by 0.4% from the preceding year), and the number of days of missed work also decreased. This is probably because the staff collaborated with departments to help employees on leave return to work and stay healthy after returning to work.We will continue to promote mental healthcare activities so that all employees can work pleasantly in good health.

② Keeping down abnormal checkup findingsIn TAIYO YUDEN GROUP, industrial physicians, nurses, and public health nurses provide health guidance to help each employee improve their ability to care for their health. So far, we have provided three types of guidance: (1) exercise guidance, (2) health guidance, and (3) nutritional guidance.To decrease lifestyle-related diseases, we have established and are running a health improvement program for those who have been identified as in need of health guidance from the results of regular health checkups.We focused on visceral fat in FY2015, which is one of the main causes of metabolic syndrome (a risky state with multiple risk factors for lifestyle-related diseases such as high blood sugar, high blood pressure, and dyslipidemia, in addition to visceral fat obesity). To visualize problems in each employee’s lifestyle, we held a “Meeting for measuring lifestyle using visceral fat” (an outside support service).At this meeting, accumulated visceral fat and lifestyles prone to storing visceral fat were visualized. Each participant received individually tailored advice for a lifestyle with a right amount of visceral fat. This event encouraged them to re-examine their lifestyles.We will continue to promote healthcare activities so that our employees can work in good health.

Taiyo Yuden Co., Ltd.

FY0.0

0.5

1.0

1.5

20152014201320122011

0.930.80 0.74

0.85

0.45

G1:IncidenceRate

Study meeting of the industrial healthcare staff

* The data were corrected after reviewing the calcula-tion method.

Questionnaire about lifestyle

Measuring amount of visceral fat

Building Safety andEnvironmental Foundation

Our Efforts toward Improvingthe Environment

Approach to Health and Safety Efforts

Mental Healthcare System

Line care

In-house staff care

External careSelf care

Individual

Manager ofAdministration

Dept.

Operationsmanager

Psychologicalcounselors

(Medical staff room)

Managersand supervisors

(Superiors)

Outside healthcareprofessionals(Psychiatrist)

Clinical psychotherapists and

industrial counselors

Contractedindustrial physician

Collaboration

Consultation /Collaboration Collaboration

Consultation Treatment

Consultation / Advice