FDK : CSR Report 2021

2021

2012 Environmental Reporting

ISO

Our Philosophy

Inspiring transformation; shaping the future and creating happiness.

FDK Groupʼs Vision

FDK Group, as a Smart Energy Partner, assemble advanced technologies, would like our customers to best utilize electric energy in a safe and efcient manner, and contribute to materialization and development of sustainable society.

● About "FDK Group CSR Report 2021"

Editorial Policy	Scope
FDK has published the FDK Group CSR Report since 2017 so that all	This report covers activities for FDK and the FDK Group. Some of the
of its stakeholders will understand its various activities based on the	report is specic to FDK.
CSR Policy of the FDK Group.	Reference Guidelines
The "FDK Group CSR Report 2021" reports primarily on efforts in the
The "FDK Group CSR Report 2021" is created by referring to
FDK Group Approach to Value Creation and the Seven Prioritized
26000 Guidance on Social Responsibility and the
Initiatives based on the CSR Policy.
Guidelines.
Target Period	ISO 26000 (Core Themes) Icons
This report focuses on activities during FY2020 (April 1, 2020 to
March 31, 2021). (Some information is included outside of this

period.)	Governance	Human	Labor	Environment Fair Trade Consumer Community
		Rights	Practice	Issues

SDGs (Sustainable Development Goals)

Successors to the Millennium Development Goals (MDGs) put forward in 2001, the Sustainable Development Goals (SDGs) were adopted at the United Nations Summit of September 2015 and comprise international targets to be achieved from 2016 through 2030. They are composed of 17 goals and 169 targets for achieving a sustainable world.

Contents

Top Message ....................................................................3

The Story of Value Creation at the FDK Group

Approach to Value Creation ...........................................5

Our Philosophy and Mid-Term Business Plan................ 7

Ideal Form .................................................................... 9

The FDK Value Chain ................................................... 11

CSR Management ....................................................... 13

Seven Prioritized Initiatives ......................................... 15

Management System

Strengthening Corporate Governance .......................... 17

Building an Internal Control System ............................ 18

Ensure Compliance ..................................................... 18

Risk Management .................................................. 19

Occupational Health and Safety Activities ................ 20

Relationships with Customers and Suppliers

Offerings .................................................................... 21

Quality Assurance Activities ..................................... 23

Relationship with Society

Communicating and Collaborating with Stakeholders ... 25

Relationships with Employees

Embracing Diversity and Inclusion .............................. 27

Developing Human Resources for Their Contribution to Society and the Planet ............................................................ 29

Environmental Conservation Activities

Protecting the Global Environment .............................. 31

Overview of Group Companies ........................................ 35

Contact

General Affairs and Human Resource Department, Corporate Headquarters Tel: [phone] Fax: [phone]

E-Mail: [e-mail]

1

FDK GROUP CSR REPORT 2021

FDK GROUP CSR REPORT 2021

2

TOP MESSAGE

We will accelerate the cultivation of our corporate culture and further enhance our corporate value.

Under our philosophy of "inspiring transformation; shaping the future and creating happiness," we will further enhance our corporate value by accelerating the cultivation of a corporate culture in which every employee strives independently to satisfy customers; thereby creating an "And Game" that satises all of our Group's stakeholders.

October 2021

FDK CORPORATION

President & CEO

Ryo Nagano

Establishing Our Philosophy

In October 2019, we formulated a 10 year scheme as our ideal form in ten years.

One of the key priorities for achieving this ideal is to establish a corporate culture that each individual makes best endeavor to satisfy customers in a self-disciplined way. In addition, FY2020 marks the 70th anniversary of the companyʼs founding. In the hope that all our employees will come together to move forward as a new FDK, we established our philosophy and, in April 2021, introduced new company uniforms.

The decision to pursue these initiatives was made after a vote by all group employees, allowing everyone to implement the plan together and feel a sense of pride and personal investment in the company.

In establishing our philosophy, we launched a company philosophy project consisting of the management team and selected employ- ees. This was to ensure that the philosophy reects the thoughts and feelings of our group employees to the maximum extent possible and that it is enduring and suitable for the company.

The new uniforms express strength, dynamism, cleanliness, and respect for diversity, including LGBT people. They are designed to be suitable for both men and women of all ages, as well as being safe, comfortable, and IEC standard-compliant(anti-static).

The FDK Group's Philosophy

Inspiring transformation;

shaping the future and creating happiness.

Explanation

Inspiring	We break through stereotypes and our own shell.
We exibly respond to the ever-changing diverse world.
	We are not to afraid taking challenges, have the courage to
Transformation	take one step forward.
	We create an organizational culture that learns from mistakes,
	helps each other, and repeats growth.
	We provide safe and high quality products and services,
Shaping	comfortable daily life and convenience for people around the
the future	world.
We make environmental conservation efforts that are helpful to
	the earth and life.
Creating	We practice working styles that gives us a lively and brilliant
work.
happiness	We hope to be in the world with the continuous smiles of
	customers, employees, shareholders, family and loved ones.

In keeping with the management philosophy we have established, we will continue to strive to enhance our corporate value, aiming to be a company that is needed and trusted by the public.

Review of the FDK Group Corporate Conduct Guidelines

CSR in FDK Group is practiced by implementing the "FDK Group Corporate Conduct Guidelines" showing the contents which all the people who work in FDK Group should positively practice, and the "FUJITSU Way" which is a group philosophy as a member of the Fujitsu Group.

When drawing up the FDK Group Philosophy, we conducted a review of the FDK Group Corporate Conduct Guidelines.

The revised FDK Group Corporate Conduct Guidelines encompass our philosophy, vision, principles, and code of conduct.

FDK Group CSR Management

The FDK Group has established the "FDK Group CSR Policy" and has set prioritized initiatives for putting it into practice based on that CSR Policy. In taking on these prioritized initiatives, we demonstrate a commitment to responsible business operations as a global company. In order to move forward with these initiatives, we have formed a CSR Promotion Commit- tee. The committee performs regular reviews to conrm the status of the prioritized initiatives, conducts initiatives relating to the prioritized initia- tives, and strives to realize our vision of helping resolve social challenges.

The FDK Group believes that strengthening corporate governance improves the soundness and transparency of the company while improving value for FDK shareholders. We therefore conduct our business activities based on the general principles of the Corporate Governance Code. In order to move forward with CSR initiatives from a more global perspective, activities complying with international CSR criteria (ISO 26000 and the RBA Code of Conduct for associates of the Fujitsu Group) are to be implemented at business locations both domestic and overseas and their supply chains. In order to achieve sound legal and regulatory compliance and respond to societal requirements, we have established Group-wide organizations, including the Health and Safety Committee,

Risk Compliance Committee, Environmental Management Committee, Product Chemical Substances Management Committee, and Export Control Committee. We have also established the Product Safety Promotion Committee to respond to consumer issues as we strengthen our quality assurance system to ensure appropriate quality and safety.

FDK Group is producing and developing next-generation batteries, such as small, all-solid-state SMD batteries, nickel-zinc batteries, and metal-hydride/air secondary batteries to contribute to the achievement of four specic targets associated with the Sustainable Development Goals (SDGs) put forward by the United Nations. In addition to existing products and services, we will also provide new ones, including next-generation batteries for markets such as IoT, mobility, and social infrastructure, which will support coming societal developments and thereby contribute to resolving social issues.

In terms of carbon neutrality, the Fujitsu Groupʼs medium- to long- term environmental vision calls for zero CO2 emissions by 2050, and as part of the RE100 goals, we have set a target for the proportion of electricity used in our business activities provided by renewable energy to be at least 40% by 2030 and 100% by 2050. FDK Group, as a member of the Fujitsu Group, will work to meet this goal.

I hope that this report will foster an understanding of the FDK Group CSR activities.

I would also like to ask all of our stakeholders for their candid feedback and insights for the sake of future FDK Group CSR initiatives.

3

FDK GROUP CSR REPORT 2021

FDK GROUP CSR REPORT 2021

4

The Story of Value Creation at the FDK Group

Approach to Value Creation

In continually addressing seven prioritized initiatives based on our CSR Policy, the FDK Group engages in management as a responsible global corporate citizen. The FDK Group provides unique value to all of its stakeholders, helping to resolve social issues through the development and supply of batteries, power storage systems and electronic devices founded in the core technologies FDK has cultivated up until now.

	Customer satisfaction			and			Responsibilities to employees
	Promises to shareholders			(do it all)			Contributions to society

And Game: FDK's new culture required to execute plan

• Growing awareness of CSR
• Importance of product quality and management quality
• Sudden changes in the price of natural resources
• Sharp rising in labor costs at overseas manufacturing base
• Market maturity and change of market structure
• Legislation to promote energy-saving policy
• Enlarging demand to in-vehicle telematics appliance

2021	Business Model

		i	n	e	e	r	i
	g					n
n							g
E

Output

In Social Infrastructure and Businesses!

● Elevator	● Computer mice
● Emergency-response	● Computer
vending machine	● Emergency lighting
● Multifunction printer	● Sensors
(copy/fax)	● Communications base stations
● Power storage system	● Data centers

SDGs Emphasized by the FDK Group

• Innovate energy consumption

● Power storage and improve efciency of energy consumption

● Innovate new technologies and processes

• Save resources and energy

Stakeholders

Suppliers

Employees

Social Issues

Invested Capital

• Intellectual capital
• Manufacturing capital
• Human capital
• Finance capital
• Social and relationship capital
• Natural capital

s'FDK

Po

gy

we

olo

r electronics techn

core

Circuit technology

technologies

Ult

y

ra-

g

olo

ne printing techn

H

y

ig

h-d

og

nol

ensity mountingtech

s

B

a

CAE technology

c

i

t

n

t

t

r

o

i

e

El

gy

y

r

ectrochemical technolo

Materials technolog

c

e

e

s

l

E

S

r

m

a

t

e

r

t

r

n

E

a

n

P

ergy

Mid-Term Business Plan

Strategic Direction

Ideal Form

Strategy

Opportunities

Risks

■ Alkaline batteries

■ Power storage system

● Ensure quality as a

■ Ni-MH batteries

■ Toner

manufacturer

■ Lithium batteries

■ Various modules

● Innovate recycling

processes

● Conserve resources

Customers

In Medical and Welfare

and reduce waste and

Sites!

emissions

● Reduce CO2

● Bedside monitor

● Execute measures

● Infusion pump

against disasters

Shareholders/

● Electric wheelchair

● Execute measures of

Investors

prevention/reduction

■ Alkaline batteries

disaster

■ Ni-MH batteries

The FDK Group Vision is "FDK Group would

■ Lithium batteries

like our customers to best utilize electric

Global Society/

■ Various modules

energy in a safe and efficient manner, and

Local Communities

contribute to materialization and development

of sustainable society" . The FDK Group

In Homes!

makes contributions through the batteries,

power storage systems and electronic

● Smoke detector

● Smartphone charger

devices provided thanks to its proprietary

technologies in addition to the production

FDK considers customers,

● Smart meter

● Credit card

processes, such as improving power storage

employees, suppliers,

● Mobile phone base

● Wrist watch

by using renewable energy, enhancing

shareholders, investors,

station

● Remote controls

energy efficiency and resource efficiency,

global society and local

● LED light

● Liquid crystal display

conserving the environment such as reducing

communities to be primary

● Automobile

(LCDs)

CO2 emissions, improving infrastructure, and

s t a k e h o l d e r s . B y

● Cordless telephone

● Beauty & health devices

strengthening security measures. FDK has

c o n t i n u i n g t o p r o v i d e

● Toy

● Flashlights

defined the above four SDGs to emphasize

v a l u e t o a l l o f t h e

■ Alkaline batteries

as the FDK Group, including social issues that

stakeholders through the

FDK Group: FDK Group	Philosophy	Vision	Principles	Code
Corporate Conduct Guidelines
Fujitsu Group: FUJITSU Way

■ Ni-MH batteries	FDK can help resolve through its existing	business activities, FDK
technologies and products in addition to	w i l l c o n t r i b u t e t o t h e
■ Lithium batteries
potential contributes through new business	sustainable development
■ Various modules	measures and actions in the future.	of society.

5

FDK GROUP CSR REPORT 2021

FDK GROUP CSR REPORT 2021

6

The Story of Value Creation at the FDK Group

Our Philosophy and Mid-Term Business Plan

Background of the Establishment of the Company Philosophy

In October 2019, we formulated a 10 year scheme as our ideal form in ten years. One of the key priorities for achieving this ideal is to establish a corporate culture that each individual makes best endeavor to satisfy customers in a self-disciplined way.

In addition, FY2020 marks the 70th anniversary of our companyʼs founding. In the hope that all our employees will come together to move forward as a new FDK, we established our company philosophy in January 2021.

Our Philosophy

"Inspiring transformation; shaping the future and creating happiness."

FDK Group Corporate Conduct Guidelines

Our Philosophy "Inspiring transformation; shaping the future and creating happiness."

FDK Group, as a Smart Energy Partner, assemble advanced technologies, would like our

Vision customers to best utilize electric energy in a safe and efcient manner, and contribute to materialization and development of sustainable society.

Information on the FDK Group Strategy Framework 10 years' scheme and Mid Term Business Plan "R1"

The FDK Group has formulated and developed "Mid-Term Business Plan 1618" as a means to strengthen our foundational business which has returned to developing materials focusing on powders, and to improve our presence as an "Leader in Energy Management Systems Across Multiple Platforms" through providing products that make use of battery and electronic business synergies to the industrial and consumer markets.

The development to differentiate ourselves from our competitors has worked to develop high energy density cathode materials for small all-solid-state SMD batteries, to establish sample specications, and to develop batteries with wide temperature, high capacity, and long-life characteristics. Although we strove to develop small modules with high-density characteristics, fiercer competition and stagnation in the market signicantly diverged results from initial plans.

In order for us to strengthen our business structure and improve our corporate value, we need to brush up on our vision for FDK Group and meet the expectation of our various stakeholders. Toward that end, we have formulated 10 years' scheme as our ideal form in ten years now, and the Mid Term Business Plan "R1", which covers what needs to be done during the rst three years of this period.

R1	R2	R3	10 Years from
(FY2020-22)	(FY2023-25)	(FY2026-28)	Now (FY2029)

Inspiring

Transformation

Principles

Future

Happiness

• We break through stereotypes and our own shell.
• We exibly respond to the ever-changing diverse world.
• We are not to afraid taking challenges, have the courage to take one step forward.
• We create an organizational culture that learns from mistakes, helps each other, and repeats growth.
• We provide safe and high quality products and services, comfortable daily life and convenience for people around the world.
• We make environmental conservation efforts that are helpful to the earth and life.
• We practice working styles that gives us a lively and brilliant work.
• We hope to be in the world with the continuous smiles of customers, employees, shareholders, family and loved ones.

Engineering				To cultivate new industries		Engineering
				Strengthen engineering
Batteries	Batteries
			To grow with prot
				Team up for development
				To ramp-up volume		Next Generation Batteries
Electronics				Utilize management resources
				Power Management
						Solutions
				To establish a new business model

	● We respect human rights.
	● We act with fairness and freedom in our business dealing.
Code of	● We handle information properly and maintain condentiality.
● We comply with all laws, regulations, and social norms.
Conduct
● We protect and respect intellectual property.
	● We do not use our position in our organization for personal gain.

In-vehicle Accessories

Smart Factory

Railway Backup

Large Scale Storage Battery

Automotive Starters

Smart Meter

Home Appliance

7

FDK GROUP CSR REPORT 2021

FDK GROUP CSR REPORT 2021

8