Pacific Industrial : Sustainability Report 2022 (For Printing) (15.4MB)

SUSTAINABILITY REPORT 2022

Pacific Industrial Co., Ltd. Sustainability Report 2022

BRAND SLOGAN

Pacific Industrial develops new businesses, new technologies and new products

that add to safety, environmental performance and comfort.

By doing so, we aspire to achieve sustainable growth as a company with a trusted reputation that meets the expectations of society. An expression of this aspiration is our Brand Slogan.

In preparation for an upcoming mobility society,

we will develop into a manufacturer capable of offering a prosperous,

safe and secure future and help to realize a sustainable society.

Toward this ambition, Pacific Industrial will create the future with passion.

CORPORATE PHILOSOPHY

As a Global Manufacturer of Technology Components,We Will…

1. Endeavor to develop and enhance technologies and to supply high quality products in response to the needs of customers.
2. Value our employees as our essential family members and pledge to provide a place where they enjoy working and creating.
3. Continue to contribute to society, confirming our role in the world as an excellent company as well as an environmentally conscious company.

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CONTENTS

Introduction

Brand Slogan/Corporate Philosophy	01
CONTENTS/Editorial Policy	02
Message from the President	03

Introduction of the Pacific Industrial Group

	Overview	05
	History	07
Special Feature ｜ Top-level Discussion	09
People-oriented Management
	Way	13
	Value Creation Model	15
	Materiality	17
Sustainability Management	19
Based on Materiality
	Management	21
	Fostering trust with	24
	stakeholders
	Solving social and customer	29
	issues through products
	Minimizing	33
	environmental load
	Respecting human resources	39
	and their active participation
Financial Highlights
	Consolidated Financial Statement	43
	(Summary)/Stock Information
	Summary of Major Management Data	45
Third-party Opinion	46

Sustainability Report 2022 Editorial Policy

Pacific Industrial Group has been publishing Sustainability Reports (former CSR Reports) since 2007 to promote and enhance dialogue with more of our stakeholders so as to build a sustainable society.

We are currently promoting sustainability management based on the sustainability-related material topics that we identified in 2020.

Our initiatives for the 15 identified material issues and the progress of KPIs is reported in this Sustainability Report 2022.

We look forward to hearing your candid opinions.

Other media

Websites

Websites provide comprehensive information related to sustainability, and discloses sustainability initiatives, figures, data and other details that could not be included in this Report as well as the latest information as necessary.

Websites

Provide more comprehensive

and timely information

This Report

Provides a summary

of important information

Securities Report

The Securities Report compiles corporate information, business segments, business result, stock information, risk-related information, financial information, and other information available at the end of the accounting period in accordance with the Financial Instruments and Exchange Act, and is disclosure material in which such information is described in full detail in paragraph format.

Period Covered in the Report:

From April 1, 2021 to March 31, 2022

(includes the latest information at the time of publication)

Boundary of the Report:

The Pacific Industrial Group

(In principle, the company and its consolidated subsidiaries.

If disclosed data is different from it, the scope is described individually.)

Publication Date:

September 30, 2022

Publisher:

Pacific Industrial Co., Ltd.

Corporate Planning Department

Phone:[phone]

Fax:[phone]

Guidelines Used as Reference:

GRI Standards ISO26000

The International Integrated Reporting Framework

Final Report

Recommendations of the Task Force on Climate-related Financial Disclosures

Sustainability Accounting Standards Board

(Reference codes are attached to the relevant sections, including partial disclosures.)

Notes on outlook

This report contains forward-looking statements, including strategies, plans, targets, and other projections made based on currently available information. These forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those discussed in the forward-looking statements. Accordingly, there are no guarantees that the forward-looking statements contained in this report will prove to be accurate.

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Message from the President

We will overcome turbulent times and create sustainable value by recognizing the importance of human resources that effect sustainability.

Under the brand slogan, "Passion in Creating Tomorrow," Pacific Industrial Group is promoting sustainability management under the long-term vision PACIFIC GLOCAL VISION toward 2030, the 100th anniversary of our founding, and beyond.

Steadily Promoting Business in the Midst of Upheaval

As the transition to a mobility society accelerates, including CASE and electrification, the environment surrounding our Group is becoming increasingly severe and uncertain due to the spread of COVID-19, soaring resource prices and restrictions on the supply of parts and materials, as well as the situation in Ukraine.

Under these circumstances, our Group has worked to prevent infections, promoted cost improvements, built a production system to match order fluctuations, and secured personnel and parts. In addition, we have formulated the PACIFIC Environmental Challenge 2050 in light of social issues such as SDGs and carbon neutrality, and we are working to reduce CO2 emissions.

In the stamping business, we promoted development and sales of products for electrified vehicles, such as ultra-high tensile strength steel products using the cold press method that contribute to car body weight reduction, functional parts such as battery cases and those from forging presses, and molding products that contribute to wheel caps and sound and vibration insulation. In response to growing needs for lighter weight products, a new plant for stamping products is under construction adjacent to the Higashi Ogaki Plant in Ogaki City, Gifu Prefecture, with an eye toward carbon neutrality.

In the valve business, together with our Group company Schrader, we are developing tire valves, on which our company was founded, as well as Tire Pressure Monitoring System (TPMS), car air conditioning valves, and industrial valves. We are also focusing on developing control valves for heat-pump-type car air conditioners, which are expected to be increasingly used in electrified vehicles.

Initiatives Dedicated to

Material Topics

In 2020, based on the SDGs (Sustainable Development Goals), we have identified our Group's key issues as material topics, and last year we formulated major initiatives and KPIs based on them.

The elements of the material topics, including human rights, human resources, the environment, and responsible procurement, are incorporated into our Group's "Code of Conduct" and "Supplier Sustainability Guidelines." We are implementing specific initiatives with our suppliers in Japan and overseas, as well as promoting awareness through study sessions, the company newsletter, and e-mail magazine among other means.

As for "solving social and customer issues through products," we are working on cost reduction, weight reduction, and environmental impact reduction through LCA using our product and material development, construction methods, and production technologies. In recognition of these initiatives, we received 20 awards globally from our customers in fiscal 2021. As for new product development using existing technologies, following last year's release of "e-WAVES," a multi-sensing logger for vaccine transportation and other applications, this June we launched "CAPSULE SENSE," a cow body condition monitoring system that contributes to solving the problems of cattle farmers who are suffering serious labor shortages.

With regard to the urgent issue of "mitigation of and adaptation to climate change," in May of last year, we endorsed the TCFD recommendations and worked to refine our analysis of the risks and opportunities that climate change poses to our Group while using scenario analysis techniques. In particular, regarding the introduction of renewable energy, we are actively promoting the installation of solar power generation systems at our domestic and overseas plants using PPA, working to achieve 100% renewable energy in the Kyushu and Tohoku regions, and continuing our initiatives to achieve a 20% renewable energy ratio by 2030.

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More Active Roles for

Diverse Human Resources

Regarding "respecting human resources and their active participation," we are proceeding with human rights due diligence in accordance with our human rights policy, which was formulated in February of 2021. In addition, as part of our health initiatives, we were selected under the 2022 Certified Health & Productivity Management Outstanding Organizations Recognition Program

(large enterprise category)." Currently, we are establishing targets for the ratio of female managers and strengthening the recruitment of female employees to enable diverse human resources to play an active role. In the future,

we will accelerate diversity and inclusion management by creating an environment in which everyone can demonstrate their individual characteristics,

not only women, but also foreign nationals and mid-career employees, in a variety of situations. We will also promote education by rank and digital skill training to create

an organization and culture in which diverse human resources can grow and create new value.

We appreciate your continued support.

Shinya Ogawa

President ,Member of the Board

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