Foundation for sustainable growth
Sustainability in ISEKI Group
Basic policy (fundamental concept)
In keeping with the philosophy of our founder, "free farmers from exhausting labor," ISEKI Group sets forth its corporate philosophy as "We strive to contribute to the creation the prosperous and sustainable society through 'providing innovative products and higher quality of services to the customers.'"
We will strive for the realization of a sustainable society, "agriculture and landscape," in cooperation with our stakeholders.
System for promotion of sustainability
With the aim of centralizing the management of organizations that address ESG-related issues in the Group, we established the ESG Committee in August 2022. The Committee is composed of Directors and Corporate Officers and chaired by an Independent Outside Director.
In principle, Committee meetings are held every month, examining and deliberating ESG initiatives of the Group as a whole, including responses to climate change, respect for human rights, and thorough compliance, from the perspective of risks and growth opportunities. In addition, the results of deliberations at Committee meetings are submitted as recommendations
to the Board of Directors and basic policies, materiality, and other important matters are deliberated and determined by the
Introduction | ISEKI Group's value creation aims Business strategies for value creation Foundation for sustainable growth Financial and non-financial data Company profile / Stock information |
Stakeholder engagement
Basic Policy (Fundamental concept)
ISEKI Group strives to build strong relationships of trust with stakeholders by engaging in constructive dialogue with them including direct interaction by the Company's executives.
Our basic policy in information disclosure is to "disclose information properly to fulfill social accountability" and "endeavor to promptly disclose accurate information required from inside or outside of the Group in recognition of the importance of social accountability and thereby become a company with transparency." To win fair evaluation from all our stakeholders and ensure management transparency, ISEKI Group strives for fair, equitable, timely, and appropriate information disclosure keeping with the purpose and meaning of fair disclosure rules.
Major engagements with stakeholders
ISEKI Group engages in constructive dialogue with stakeholders to accurately understand and meet changing expectations from society. The issues, expectations, etc. obtained through various dialogues are fed back to the Directors, management executives, and related departments by way of reporting to the Board of Directors and other meeting bodies for the purpose of information sharing and reflected in and used for improvement of business activities.
M denotes involvement of company executives
Board of Directors. This framework enables the management team to strengthen its involvement. Eight working groups (WGs) have also been set up to promote ESG-related activities.
Stakeholder
Concept behind the engagement
To provide high-quality and safe products and services that satisfy our customers, ISEKI Group will extend farm business proposals and support,
Opportunities for dialogue
Direct dialogue with sales and maintenance staff User exchange meetings M
| Promotion system
of Directors | Seek consultation | |||
Committee | ||||
Submit | ||||
Board | ESG | |||
recommendations | ||||
[ Purpose ] Centralize organizational management regarding ESG-related issues in general through covering the aspects of environment, human capital, governance and compliance
[ Role ] In response to a consultation from the Board of Directors, deliberate on matters related to the enhancement of ESG and make recommendations to the Board of Directors
[ Members ] Chairperson:
Independent Outside Director Members:
Directors and Corporate Officers Observers:
Audit & Supervisory Board Members
WGs
[ Purpose ] Set up WGs for executive chains of command and promote ESG
[ Members ] Members:
Heads of relevant departments
[ WGs ] Compliance WG
Risk Management WG
Information Disclosure WG
Environmental Management WG
Human Resources WG
Materiality WG
Operational Streamlining WG
CS Enhancement WG
Customers
Suppliers
Local
community
Employees
including cultivation techniques, as well as explanation for the application and safe use of agricultural machinery. We will also strive to understand the true needs of customers through dialogue and use this dialogue to improve product development.
We will cooperate with our suppliers to create opportunities for mutual improvement so that they can lead to mutual business development including fair and equitable trade towards building a sustainable supply chain.
We will engage in environmental conservation, activities for community growth and development, and activities for the nurturing of the next generation so as to enable co-existence with the local communities.
We will work on providing a secure and safe workplace, share company information and support for career development towards creating an employee-friendly workplace and nurturing human resources.
We will bolster corporate governance in order to build long-term trusting
Visit M Trainings, seminars
Exhibitions and demonstrations M
Proposal and support of farm business technologies Market research
IR information meetings for vendors M Dealer meetings M
Superior company tours M Inspection and meeting with suppliers M Business report meeting M
Annual general meeting of Ishokai M Visits (Japan, overseas) M
Tours of factories and exhibition halls M CSR activities such as cleaning activities Exchange of views with local governments, etc. M Participation in local events M
Internal IR information meetings M Collective bargaining M Labor management council M Safety and Health Committee Engagement surveys Employee meetings M
Various training Various commendation meets and contests M Former employees' meeting M
General shareholders' meeting M
Main activities | Set directions for and promote sustainability |
Review and set materiality | |
Report important matters on sustainability |
Shareholders and investors
relationships with our shareholders and investors. We will engage in constructive dialogue based on our disclosure policy.
Quarterly briefing sessions (four times a year) M
Individual meetings M
Information meetings for individual investors and shareholders M Facility tours M Issuance of IR-related brochures
To spread sustainability
To penetrate sustainability throughout ISEKI Group, the top management sends messages to employees while awareness activities through internal newsletters and study sessions are conducted. We focus on sharing the Group's vision and philosophy especially with young and mid-career employees. We will maximize the Group's capabilities by allowing each employee to demonstrate their abilities.
Roundtable discussions
We hold roundtable discussions to foster employees' awareness toward ISEKI Group's goals and encourage them to take action voluntarily and proactively to achieve
the goals. The sessions take place in small groups to facilitate discussions among employees.
A total of 15 sessions have been held since 2021, the first year of the Mid-term Management Plan. The discussions saw 116 participants, including employees from Group companies in Japan and overseas.
ISEKI Report issuance project
ISEKI Report is issued as a Group-wide project led by young and mid-career employees. Through the project, we share with the members the importance of sustainability, as well as integrated thinking that takes into account short-,medium-, and long-term value creation.
Constructive dialogue with shareholders and investors
With the aim of achieving stable growth and improvement in corporate value over the medium to long term, ISEKI Group engages in various IR activities to deepen shareholders and investors' understanding on the Group's stance on management, as well as the status of management and other topics.
In addition to creating opportunities for direct dialogue with the management, mainly the President and officers in charge of business administration departments, we have a section in charge of IR and strive for active dialogue with shareholders and investors. In 2022, our engagement initiatives included online company briefings for individual shareholders and investors, ESG briefings for institutional investors and analysts, and individual meetings, not to mention the Ordinary General Meeting of Shareholders and quarterly briefing sessions. We also enhanced information disclosures, such as renewing our website and issuing English IR reports for overseas investors.
Valuable opinions obtained from dialogues are fed back to the management and reflected in our business activities. In recent years, we revised the contents on human rights and mineral procurement in the CSR Procurement Guidelines, based on social circumstances and dialogues with analysts.
Internal IR information meetings for dialogue between top management and employees
To disseminate our long-term vision and management strategies to materialize the vision, we engage in employee communication (hold internal IR information meetings), where the management has direct dialogues with employees. In the 2023 meeting, the President described ISEKI Group's goals, the progress of the Mid-term Management Plan, and other topics. Employees then took part in group discussions, involving officers and executives, on links between the Mid-term Management Plan and their work, initiatives to achieve KPIs, and other subject matters.
Please refer to our website for details of stakeholder engagement. https://www.iseki.co.jp/sustainability/social/stakeholder/ (in Japanese) Please refer to p. 84 for the status of shares held by type of shareholder.
59 ISEKI Report 2023 | ISEKI Report 2023 60 |
Foundation for sustainable growth
ISEKI Group's environmental management
Toward the realization of a sustainable society
ISEKI Group has designated realization of a decarbonized and recycling-oriented society contributing to societal sustainability as one of the business priorities, and practices environmental management by setting the Environmental Vision and the Basic Environmental Policy.
To practice environmental management across the Group, we have introduced the environmental management system (EMS) at our manufacturing bases and non-manufacturing bases, such as sales companies, both in Japan and abroad and built a structure to promote it in the form of a working group (WG) for promoting ESG.
In May 2022, ISEKI Group announced that the entire Group would tackle the challenge of achieving carbon neutrality by 2050, and raised its 2030 CO2 reduction target to a 46% reduction compared with 2014 at its global production sites. Then, in June 2023, we set a new target of reducing CO2 by 46% compared with 2014 throughout the entire Group. We will continue our efforts toward decarbonization with a sense of speed.
In terms of product-based action, we are working to enhance the percentage of eco-product sales in Japan as an indicator of the expansion of products featuring engines compliant with exhaust gas regulations and products that contribute to the reduction of greenhouse gas emissions from agriculture and of the promotion of eco-friendly design. Reducing the environmental footprint of the agricultural sector is a priority issue to curb CO2 emissions by society as a whole and to create a sustainable society. ISEKI will use its superior technological and service capabilities to contribute to the resolution of social issues.
Environmental Vision
ISEKI Group will aim for the creation of a sustainable society, including carbon neutrality by "providing innovative products and higher quality of services to the customers."
Basic Environmental Policy
ISEKI Group promotes environmental activities that contribute to achieving harmony among nature, society and corporations with the aim of creating a sustainable society.
Maintain environmental management system and its functional applications
Promote dissemination of business activities and products and services to achieve carbon neutrality
Comply with environmental laws, regulations, and standards Conduct environmental education and information disclosure
System for promoting environmental management
The Environmental Management WG promotes the Basic Environmental Policy throughout the Group, aiming to realize our Environmental Vision by managing progress toward our mid- to long-term environmental targets through compilation of activity results for each office, and by discussing TCFD-related measures. Matters discussed by the Working Group are reported to and deliberated by the ESG Committee.
Introduction | ISEKI Group's value creation aims Business strategies for value creation Foundation for sustainable growth Financial and non-financial data Company profile / Stock information |
Mid- to long-term environmental targets and results
Mid- to long-term environmental targets (2022-)
Mid- to long-term environmental targets | Backcasting | Environmental Vision | |||||||||||||
Reduction of CO2 emissions (Scope 1 & 2, compared with 2014) | 2050 | ||||||||||||||
Entire ISEKI Group | 46% reduction by FY2030 (Total) | New | Toward the realization of | ||||||||||||
Global production bases | 46% reduction by FY2030 (Total) | ||||||||||||||
a sustainable society, | |||||||||||||||
including carbon neutrality | |||||||||||||||
Eco-product sales in Japan (%) | 65% in 2025 | ||||||||||||||
| | Reduction of Scope 1 & 2 CO | emissions | | Eco-product ratio in domestic sales | ||||||||||||
from production activities at2global production bases | Results | Targets | |||||||||||||
Standard | Results | Targets | |||||||||||||
−21.2% | 65.0% | ||||||||||||||
−31.5% | |||||||||||||||
−46.0% | 50.3% | ||||||||||||||
−39.5% | 52.0% | ||||||||||||||
39.8% | 46.0% | |
36.6% | ||
Carbon neutral | |||||||||
2014 | 2021 | 2022 | 2030 | 2050 | 2020 | 2021 | 2022 | 2023 | 2025 |
TOPICS - Reduction of CO2 emissions
ISEKI-Matsuyama MFG. Co., Ltd. is making moving forward with replacing equipment to switch from the heavy oil and butane gas that form part of its current fuel usage to liquified natural gas (LNG), which emits limited CO2.
*Entire ISEKI Group: Consolidated business bases of ISEKI Group in Japan and overseas
*Global production bases: ISEKI-Matsuyama MFG. Co., Ltd., ISEKI-Kumamoto MFG. Co., Ltd., ISEKI-Niigata MFG. Co., Ltd., ISEKI-Shigenobu MFG. Co., Ltd., PT. ISEKI INDONESIA
*The CO2 emission factor changes every year based on the power source composition ratios of the individual electricity companies. (Emission factors for each electricity company [Ministry of the Environment] were used as a reference.) *Please refer to p. 57 for information about the eco-product certification system
*Upon revision of its mid- to long-term targets, ISEKI switched to monitoring total CO2 emission reduction rates, rather than rates per unit of net sales, as previously. Furthermore, the number of sites subject to monitoring was changed; as a result, the figures above differ from figures published in the past.
Major activity results in promoting environmental management
Mid-term environmental targets | FY2022 Targets and result evaluation | FY2030 | |||
Targets | Results Evaluation | Targets | |||
Manufacturing | FY2013 | Reduction of total material input (per net sales) | (16)% | (29)% | (18)% |
resources | |||||
standard | |||||
Development of | Reduction of volume of water used (per net sales) | (42)% | (56)% | (51)% | |
recycling-oriented | Four | ||||
Reduction of final volume of waste (per net sales) | (64)% | (72)% | (65)% | ||
society | |||||
manufacturing | |||||
Toxic chemical | Reduction of used volume of chemical substances subject | ||||
Board of Directors
Consultation
Recommendation
ESG Committee
Environmental Management WG
[ Members ] Managers in charge
General Manager of Corporate Planning Dept. Members
General Manager of Corporate Planning Dept., General Manager of Public & Investor Relations Section, General Manager of Financial Dept.,
General Manager of General Affairs Dept.,
General Manager of Sales Planning & Administrative Dept.,
General Manager of Corporate Business Control Dept. of Overseas Business Division,
General Manager of Products Planning Dept.,
General Manager of Strategic Planning Section,
General Manager of Administrative Dept. of Development & Production Division,
General Manager of Production Engineering Control Dept., General Manager of Purchasing Dept.,
General Manager of Green Innovation Promotion Section,
and General Manager of Environmental Control Section (other individuals are called on to participate in addressing specific themes as necessary)
Secretariat
Corporate Planning Department and Environmental Control Section
[ Frequency of meetings ]
TCFD-related measures: Every six months
Mid- to long-term environmental targets: Every quarter, or according to progress with various themes
Information
sharing, direction
Reporting of
progress & issues
Environmental management meetings at individual ISEKI Group companies
Assign Environment Control Managers who promote environmental control activities in each office
Manufacturing bases
4 bases in Japan and 3 bases overseas
EMS certification acquisition rate: 100%
Non-manufacturing bases
8 sales subsidiaries in Japan EMS certification acquisition rate: 100%
10 other bases in Japan and overseas
EMS certification acquisition rate: 90%
substances | bases in Japan | to PRTR law (per net sales) | (36)% | (43)% | (37)% |
*Four manufacturing bases in Japan: ISEKI-Matsuyama MFG. Co., Ltd., ISEKI-Kumamoto MFG. Co., Ltd., ISEKI-Niigata MFG. Co., Ltd., ISEKI-Shigenobu MFG. Co., Ltd. *Please refer to the Company's website for the historical results of environmental burden reduction by base.
Initiatives for preservation of biodiversity
Agriculture is closely linked to the natural benefits (ecological services) produced by biodiversity. ISEKI Group has set down guidelines and strives to ensure that due consideration is paid to biodiversity in its business activities. (Please refer to the Company's website for ISEKI Group's Biodiversity Guidelines and its approach.)
Case study Alleviation of burden on soil and water by reducing the use of herbicides
ISEKI Group is contributing to the realization of sustainable agriculture by working to promote and expand environmentally sound agriculture including organic farming. The Aigamo-Robo weeding robot (for details, please refer to p. 36) suppresses the development and growth of weeds. This promises to reduce the use of herbicides, alleviating the burden on soil and water (i.e., contamination), thereby preserving ecological services.
61 ISEKI Report 2023 | ISEKI Report 2023 62 |
Foundation for sustainable growth
Efforts to improve quality and customer satisfaction - Establishing trust with customers -
Introduction | ISEKI Group's value creation aims Business strategies for value creation Foundation for sustainable growth Financial and non-financial data Company profile / Stock information |
Basic Policy (Fundamental concept)
ISEKI Group works to provide consistent product quality assurance from product planning to sales and after-sales service while reflecting the opinions from the market in product development and improvement so as to offer products developed from the customers' perspective in a timely manner.
The Group takes all possible measures for quality control and makes prompt responses in good faith should any quality- related issues arise.
Product development reflecting the voices of customers
Human resources development
Early nurturing young designers
Young designers implement the integrated system for rice farming by themselves for one year. We strive to develop products from customers' viewpoint, improving knowledge on not only farm work but also general agricultural matters through farm work.
Service skills contest
We held a service skills contest for young service staff at sales subsidiaries. The contest is intended to bolster repair fees at sales subsidiaries, as well as improve skills and increase motivation of each staff member.
Product development and consistent quality | | Flow of how voices of customers are reflected in product development | ||||||||||||
assurance system that reflect the voice of customers | |||||||||||||
ISEKI Group has a seamless quality assurance system in | Feed back voices of customers (opinions, requests, and emerging needs) | ||||||||||||
place, where quality assurance verification and evaluation | products | ||||||||||||
are conducted (design is reviewed) in every step from | |||||||||||||
product planning, development and design to purchase, | |||||||||||||
Product | Development | Purchase and | Sales and | quality- | |||||||||
manufacturing, sales, and services with the aim of | planning | design | manufacturing | services | |||||||||
providing products that are safe and respond to the trust | |||||||||||||
Development and optimization of quality at each step | high | ||||||||||||
placed by the customers. | |||||||||||||
Grasping the required quality | and | ||||||||||||
In product development, ISEKI Group grasps the | |||||||||||||
Incorporating into planning quality | Safe | Customers | |||||||||||
requirement details based on the voice of customers | |||||||||||||
Design quality and | |||||||||||||
(opinions, requests, and emerging needs) and utilizes | development of functions | ||||||||||||
Strengthen collaboration with | |||||||||||||
them in product planning and build them into functions | |||||||||||||
Japanese and overseas suppliers | |||||||||||||
Sales preparation | |||||||||||||
in development and design, ultimately reflecting them | |||||||||||||
evaluation |
Provision of products and services in consideration of the needs of customers and society
in purchase and manufacturing. In each step, the | Verification and evaluation | |
of product quality | ||
Group carries out evaluation and verification of quality | Evaluation of | |
customer satisfaction | ||
optimization from various aspects. ISEKI Group also | ||
gathers customer opinions through service activities to | Quality assurance verification and evaluation (design review) | |
provide instructions on test operations upon delivery and | ||
inquire on the conditions of the delivered products and | ||
has built a mechanism that feeds back those opinions | the assembly direction management system that improve | |
for development and improvement, reflecting those in | productivity. | |
developing safe, high-quality products. | In addition, the Group formulates capital investment | |
Improvement of productivity and quality by introducing | plans for production support and verifies practical | |
production support equipment | applications thereof, including image recognition tools | |
ISEKI Group horizontally deployed conventional | using information technologies, digitalization of know-how | |
technologies such as the parts integration system and | of skilled workers, and systematization of work standards. |
Preventing farming accidents
In recent years, a lot of accidents at the time of using agricultural machinery have occurred, and, in 2022, the number of farm work accidents was 321*1 in Japan.
To ensure customers' safety in farm work, ISEKI Group works to develop products with enhanced security and safety features. For the safety of farm work using tractors, we have developed a model equipped with a seat belt reminder*2, ahead of the 2025 implementation of new safety inspection criteria. Seat belt reminders are already mandatory for automobiles. They urge passengers to fasten their seat belts with lights and sounds. Our new model is the first tractor in Japan equipped with the reminder. We will press ahead with our development activities to ensure
Service support for safer use
In the service support, ISEKI Group provides usage instructions before and after delivery through, for example, test-driving, to ensure secure and safe use of purchased products. As after-sales services, we provide inspection and maintenance at each base, pre-use inspection, etc. as needed, for safer use and to prevent farm work accidents. Also, with the aim of providing high-quality and quick services, we have expanded large-scale maintenance facilities, including Nakashibetsu Service Workshop located in Eastern Hokkaido, which was completed in December 2022.
To improve the technical abilities of maintenance personnel, a combination of group training and online training is provided with the aim of achieving proficiency and
Early responses to quality defects
When an issue occurs in products, ISEKI promptly performs inspections and repairs of the products giving the utmost priority to customers' safety. When we launch a recall, we notify and report to the concerned authorities*1 without delay, disclose information, and strive to draw attention of and provide information to customers. We share information on quality deficiencies internally in order to prevent the recurrence of the same deficiency.
Responses to and utilization of inquiries from customers
We strive to respond to inquiries, opinions, and comments from customers promptly in a sincere manner (target of
| | Number of recalls by fiscal year*2 | ||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | ||
Number of | 6 | 0 | 2 | 0 | 4 | 1 | |
recalls | |||||||
*1 | Ministry of Land, Infrastructure, Transport and Tourism, Ministry of Agriculture, Forestry | ||||||
and Fisheries, Ministry of Economy, Trade and Industry, etc. | |||||||
*2 | Number of recalls filed with the Ministry | of Land, Infrastructure, Transport and Tourism |
Please find the link below to access important notifications of recalls:
https://www.iseki.co.jp/news/ (in Japanese)
| Contents of inquiries regarding products from customers (FY2022)
(Total number of inquiries that came through the website: 584)
the safety of farm workers.
*1: According to statistics by the Ministry of Agriculture, Forestry and Fisheries
*2: The reminder will be installed in phases, starting from the BF Series tractors
The system sets off a sound alarm with a light lit to warn that the seat belt is unfastened.
improving skills. We will boost the level of services through human resources development and education.
within one business day). The valuable opinions from customers are fed back to the Company's executives and relevant departments and are used for better product development, sales, and service activities. Further, for matters that receive a large number of inquiries, ISEKI Group disclose them on its website so that other customers can make best use of them.
Other: 20% | |||||||||
Opinion and | |||||||||
request: 1% | |||||||||
Document | Product and | ||||||||
request: 6% | |||||||||
parts-related: | |||||||||
46% |
Technical details: 27%
Customer satisfaction survey
To offer products and services of higher quality, we conduct customer satisfaction surveys targeting customers in Japan. The CS Enhancement Working Group promotes the activity. The survey results are reported to the ESG Committee and fed back to relevant departments. We thus strive to make improvements as needed.
63 ISEKI Report 2023 | ISEKI Report 2023 64 |
Foundation for sustainable growth
Supply chain management
Basic Policy (Fundamental concept)
To achieve its social responsibility, together with its suppliers, across the entire supply chain, ISEKI Group's basic policy is that "the relationship with suppliers should be fair and equitable and it will not abuse its privileged position in the trade to give unfair and disadvantageous treatment to suppliers."
CSR procurement policy
ISEKI Group aims to be a company trusted by society by working on CSR procurement together with its suppliers to give its priority to environmentally- and socially-friendly material procurement and product and service provisions.
Promotion of CSR procurement
ISEKI Group has established, distributed, and published ISEKI Group CSR Procurement Guidelines, which outline the Group's CSR concept and procurement policy in order to jointly promote, with its suppliers, procurement activities that take social responsibility into account. The Group regularly carries out questionnaire surveys for suppliers according to the guidelines, and reconfirms contents and make improvement proposals, etc. in relation to suppliers whom CSR risks are concerned for.
To strengthen the relationship with our suppliers, we hold business report meetings and IR information meetings for
Introduction | ISEKI Group's value creation aims Business strategies for value creation Foundation for sustainable growth Financial and non-financial data Company profile / Stock information |
Communities - Co-existence with local communities -
Basic Policy (Fundamental concept)
The basic rule of ISEKI Group is "to actively contribute to local communities as a member responsible for society" and "to contribute to local society while affording respect for laws and regulations, practices and culture of the country when doing business overseas." ISEKI Group works on contributing to society through its business activities aiming for the mid- to long- term development of local communities.
Dream Project to support female farmers toward active participation by female farmers
40% of agricultural workers are women and they play important roles in farming and community activities.
To provide further support to the female farmers' activities, ISEKI Group has participated in NOGYOJOSHI (female farmers) project by the Ministry of Agriculture, Forestry and Fishery (MAFF). We worked with female farmers to develop agricultural machinery*and hold seminars. Since the COVID-19 pandemic, we have held online roundtable discussions on topics useful for farm business, such as the basics of GAP and soil maintenance. The round table discussions have seen over 100 participants in total.
Voice of seminar participants
vendors, as well as create other opportunities to engage in dialogue on our policies, the state of management, and CSR procurement. We also hold superior company tours and workshops to advance together.
Request to promote CSR procurement and keep track of the status
CSR Procurement Guidelines | CSR procurement questionnaire and certification of Green Suppliers | ||
Available on the website of ISEKI CO., LTD. | Questionnaire Takes place every year | ||
Matters requested | |||
①Customer satisfaction and quality assurance ②Legal compliance and ethical corporate activities | ③Respect for human rights and creation of |
"I was new to farming and unsure about how to use the machinery. The seminar taught me the correct way."
"It was good to learn how to operate a tiller by actually using one."
*[Attention to machinery developed based on voice of female farmers]
In recent years, machinery products incorporating the perspective of female farmers have been attracting attention. For instance, they were featured in media as an example of gendered innovation.
"Shiropuchi" | "Chocopuchi" series |
tractor for female farmers | tiller for female farmers |
a healthy and safe workplace | ||||
④Environmental preservation and | ⑤Co-existence with local communities and | ⑥Management transparency and | ||
green procurement | international cooperation | accountability |
Working on CSR with suppliers
"I was looking for a seminar like this! Detailed guidance was helpful in preparing for the work in spring."
Total number of seminars on how to operate agricultural machinery ···· 43
Total number of participants in the project ······ More than 900
*Including online roundtable discussions
Initiative undertaken | 2022 |
Indicator |
Activities for contribution to the local community and environment
Target | Result | ||
Confirm the status of suppliers that have been requested to promote CSR | Confirmation rate | 80% | 85% |
initiatives | |||
Explain and exchange opinions about ISEKI Group's CSR procurement at | Number of times | 2 times/year | 2 times/year |
business report meetings | held | ||
Hold training sessions for major suppliers to factories in Japan (Iyukai | Number of times | 8 times/year | 7 times/year |
association) | held | ||
Formulate CO2 emissions reduction targets in collaboration with suppliers | Formulation rate | 70% | 51% |
that account for 70% of transaction amount |
We have been serving as a park supporter since 2011, cleaning Shiroyama-koen Park (Matsuyama City) and Shigenobu River Green Area. In addition, we have been cleaning the Horie Beach twice a year since 2021 as a corporate supporter under the Ai Beach system, a volunteer registration system of Ehime Prefecture. As a member of the local community, we will continue to proactively work on activities for contributing to the community and environment.
Our riding lawn mowers mowing the lawn at Shiroyama-koen Park
Initiatives for complying with the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors and prevention of corruption
Communication toward the nurturing of the next generation
ISEKI Group has proactively conducted activities toward the
The Group provides continuous education and training concerning the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors (the "Subcontract Act") and compliance to ensure fair and equitable transactions with suppliers. Regular reports on education and training are made from the Compliance Working Group, which consists of departments in charge of the overall management of each division, to the ESG Committee. In FY2022, ISEKI was subject to no legal action under the Subcontract Act.
Initiatives for complying with the Subcontract Act and prevention of corruption
Reaffirmation of what violates the Subcontract Act and compliance with recurrence prevention measures
Explanation on the details of recurrence prevention measures; Ethical Hotline
Operational manual for compliance with the Subcontract Act
Provisions of the Subcontract Act
Participation in an outside seminar on the Subcontract Act
Compliance education (Code of Ethical Behavior, Casebook of Scandals, etc.) CSR education (CSR procurement guidelines, etc.)
nurturing of the next generation of local communities. Sanae National Children's Drawing Contest for elementary school children and kindergarteners has been held every year since 1996 for the purpose of making them interested in "food" and "agriculture." In 2022, when the 27th Contest was held, we received excellent works from approx. 1,300 children
nationwide. The total cumulative number of entries is 32,300. Nationwide Grand Prize for 2022, "Farmers Children enjoying vegetable seedling quiz Reaping Vegetables"
At the Farmers & Kids Festival held at Hibiya Park in 2022,
we offered vegetable seedling quizzes and other programs where a wide range of visitors from children to adults enjoyed experiencing the appeal of agriculture and agricultural machinery.
65 ISEKI Report 2023 | ISEKI Report 2023 66 |
Foundation for sustainable growth
Independent Outside Directors roundtable discussion
Introduction | ISEKI Group's value creation aims Business strategies for value creation Foundation for sustainable growth Financial and non-financial data Company profile / Stock information |
Shoji Tanaka | Kazuo Nakayama | Mami Taira | Atsushi Iwasaki |
Independent Outside Director | |||
Independent Outside Director | Independent Outside Director | Outside Audit & | |
Chair of Board of Directors | |||
Member of Nomination and | Member of Nomination and | Supervisory Board Member | |
Chair of Nomination and | |||
Compensation Committee | Compensation Committee | (Independent Officer) | |
Compensation Committee | |||
Instilling henkaku (Change) throughout ISEKI Group
as we approach the 100th anniversary of our foundation
To establish a path toward achieving sustained growth as a corporation, ISEKI & CO., LTD. calls on Outside Directors with a range of experience and extensive knowledge to participate in active discussions taking place primarily at Board of Directors meetings. We organized a round table involving four of these Independent Outside Directors to discuss the topics of henkaku (Change) at ISEKI Group as we approach the 100th anniversary of our foundation in 2025 and the challenges ahead of us.
wholehearted devotion to responding to farmers' needs, which has driven it to put everything into developing technologies and making products. But the question is, can the products it develops actually generate profits? The Company isn't currently doing enough to secure profits, and that's a problem. Besides that, I'd like to see ISEKI invest effort in factory automation to boost its manufacturing capabilities. I'm also looking forward to the development of new products that can help address challenges such as sustainable coexistence with nature and climate change.
Nakayama: I took up the post of Outside Director at the Company in March 2021, after working at a general trading company, mainly in the machinery division and the food resources business unit, and then serving as an executive at a leasing company. ISEKI's image was that of a leading agricultural machinery manufacturer, and I found its employees extremely conscientious, but I do now sometimes feel that they could be a bit more business-minded. As Shoji Tanaka said, the Company has a high-mix,low-volume production model, and as long as there are farmers who need that, the Company has to also provide maintenance services. This is a reliable company committed to its founding spirit, but it seems to have a tendency to prioritize its social role somewhat to the detriment of economic rationality.
Iwasaki: I became an Outside Director at ISEKI & CO., LTD. in June 2013, and subsequently took up outside directorships at two other companies. In light of my experience at those two companies, I was appointed as Chair of ISEKI's Nomination and Compensation Committee as well as Chair of the Board of Directors, which placed me in a position of responsibility for all aspects of the Company's governance. Before I became an Outside Director at the Company, the name "ISEKI" conjured up a strong image of a Japan-based machinery manufacturer in my mind. Since taking up my post, however, I've realized that services and repairs are also key revenue streams for ISEKI, and that in recent years the ratio of overseas business has increased; developments such as these have convinced me that the Company's making steady progress in shifting onto a growth trajectory. Looking ahead, I think the issue will be how the Company can target crops other than rice to develop its overseas business.
The entire Group must change its mindset
Iwasaki: One of the targets of the Mid-term Management Plan announced in February 2021 was a consolidated operating margin of 5.0% in FY2025. When I look at
Taira: I'm very impressed with the various growth strategies described in the Mid-term Management Plan. However-and this is an issue common to many Japanese corporations, which have corporate cultures emphasizing reliability-the Company has a tendency to be slow in getting started on things. First it prepares, then double- checks its preparations, and only once a successful outcome is assured will it take action. The prevailing attitude seems to be that, whatever needs to be done, the correct procedure must be followed to the letter. But sometimes I'd like the Company to just set off into uncharted territory without fear of failure. The rapid progress that results should reveal a path toward achieving the targets of the Mid-term Management Plan.
Tanaka: Personally, I'm not very optimistic about achieving the targets of the Mid-term Management Plan. Nonetheless, looking at current business results, overseas businesses are performing well. As part of the Company's overseas partnership strategy, it's developing the business globally by transferring technology to Tractors and Farm Equipment Limited (TAFE) in India and shifting production of some models to the factories of PT. ISEKI INDONESIA. Measures such as these are progressing steadily in overseas businesses, including those in North America and Europe, enabling the Company's operations as a whole to expand. Such strategies are proving successful: In the Company's overseas businesses, both sales and the profit margin look set to achieve the Mid-term Management Plan's targets ahead of schedule. I believe this is the result of a change in mindset thanks to
A reliable company committed to its founding spirit
Tanaka: I'm an attorney, working primarily in corporate restructuring, including corporate rehabilitation, civil rehabilitation, and out-of court workouts. At ISEKI & CO., LTD., I assumed the position of Outside Audit & Supervisory Board Member in June 2010, and became an Outside Director in March 2016. ISEKI has established a solid position as an integrated manufacturer specializing in agricultural machinery that commands outstanding technological capabilities, with a track record that
includes the development of Japan's first ever auto- threshing combine harvester. On the other hand, however, the Company has a tendency to pursue its founding spirit so far that it gets caught up in high-mix,low-volume production, giving an impression of poor resilience, to use the common term these days.
Taira: Yes, but I do think the Company's outstanding technological capabilities are worthy of attention.
I became an Outside Audit & Supervisory Board Member in March 2016. What's great about ISEKI is its
progress toward meeting this target, it seems to me that it will be extremely difficult to achieve if the Company simply continues its existing initiatives without changing anything. That's why I believe our role as Outside Directors is to call on the executive team to bring about a change of mindset throughout the entire ISEKI Group and pursue selection and concentration across the Group as a whole, encompassing everything including all businesses and products. Then we should closely monitor the resulting process of trial and error.
technological collaboration between the Development & Production Division and the Overseas Business Division. I have high hopes that this sort of positive example will provide the breakthrough necessary for the entire Group to pursue a change of mindset.
Nakayama: Looking at the situation both in Japan and overseas, it's obviously the overseas business that's expanding substantially and offers further growth potential. However, agriculture overseas differs fundamentally from Japanese agriculture in many
67 ISEKI Report 2023 | ISEKI Report 2023 68 |
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Iseki & Co. Ltd. published this content on 31 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 August 2023 07:21:03 UTC.