Management and Sustainability | Touchscreen specialist manufacturer DMC

SYSTEM

Corporate Philosophy Structure

DMC considers its corporate philosophy the heart and soul of its business activities.
Following this philosophy, all employees work together to contribute to the affluence and sustainability of the society we serve.

1) Management Policy
- We promote fair, transparent and free competitionand strive to ensure appropriate transactions inaccordance with rules and principles.
- We work on procurement, production and sales with social and environmental consideration that contribute to the realization of a sustainable society.
- We provide customers with the best value to ensure mutual growth.
- We respect the individuality of all employees as we provide a safe and secure working environment for mutual growth through sustainable business.
- We respect the culture and customs of our neighbors around the world as we strive to contribute to the development of society through sustainable business growth.

2) Action Agenda

Pursuing cooperation between Indonesia and Japan, DMC establishes trusting customer relationships and maintains stable profits.

Purposes
- Prioritizing employee happiness while contributing to regional society
- Promoting regional employment
- Investing profit into next-generation business
Goals
- All employees improve themselves while helping others to improve.
- Employees take responsibility for their current and future roles as they take effective action.

3) Action Plan FY2022
- To be a company that can be relied upon
- To be a company that grows together with its partners (customers and suppliers = partners)
- To deepen (evolve) the relationship with customers through our unique proposals and product development
- To create an environment where employees are happy to work
- To build a system that can meet the quality, cost, and delivery requirements overseas
4) Daily Activities *
- The Challenge Sheet aims to implement the PDCA cycle based on the three items of performance contribution goals, competencies (behavioral characteristics that lead to performance), and skills (that lead to performance goals), and is used to recognize and share performance results.
* Individual priority measures (based on the Challenge Sheet)

CONCEPT

DMC Sustainability

Sustainability Concept

DMC touchscreens are used in indicators, industrial-use monitors, machine tools, measurement devices as well as in KIOSK and other terminals. Recently, expanded use in public services includes medical devices, ticket machines, and digital signage, showing the important social responsibility that DMC has accepted. We recognize that providing products, solutions and other services, returning our business achievements to society, and sincerely performing business activities while assuring product safety and security, environmental conservation, compliance with laws and regulations, respect for human rights, and fair and equitable transactions lead to the fulfillment of our social responsibility. We also recognize that participating in regional activities is an extremely important social responsibility, and we are always on the lookout for more ways to be involved.

Sustainability Promotion System

In order to promote the sustainability efforts of various departments in a unified manner, we have established the Planning and Administration Office under the direct control of the President as a system in which top management is involved in and manages sustainability activities. DMC has also established a structure to discuss and report important sustainability matters at management meetings to promote uniform approaches for both management and sustainability. DMC leverages multidisciplinary cooperation with departments and divisions in charge of sustainability to ensure effective product safety and security, respect for human rights, labor practices, supply chain management, environmental conservation, and regional contribution. The Planning and Administration Office provides full support for these activities.

To promote sustainability activities within the company, in FY2021 we held Sustainability seminars with external lecturers to raise the understanding and awareness of the managers of each department, as well as workshops to promote carbon neutral initiatives. Employees in managerial positions recognized issues through the confirmation of progress in sustainability promotion at each division to increase the awareness of employees about sustainability activities.

ENGAGEMENT

Relations with stakeholders

DMC strives to communicate with stakeholders through a wide range of systems to ensure that it remains a company capable of contributing fully to the society we serve. We report opinions of our stakeholders to the top management and reflect them to management activities with stakeholder engagement as the top priority.

Stakeholder Engagement

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Stakeholder	Details	Major Responsibilities and Issues	Means of Communication
Customers	DMC sells touchscreens to distributors and manufacturers around the world.	Manufacturing high-quality and safeproducts Disclosing product information Designing environmentally friendly products Stable supply of products and provision of support	Communication from product development to supply Providing solutions Contact information Customer satisfaction surveys Direct visits by the President
Shareholders & Financial Institutions	DMC's sole shareholder is its parent company, USCO Corporation	Improvement of corporate value Appropriate return of profits Timely and appropriate information disclosure	Shareholders meeting / Financial settlement briefing Shareholder meeting reports
Suppliers	DMC strives to realize a sustainable society with suppliers manufacturing ingredients and parts that DMC procures for touchscreen production.	Stable ordering Sustainability promotion throughout the supply chain	Factory audit Periodical discussions Sustainability procurement questionnaires Contact information
Employees	DMC has 703 employees in Japan and Indonesia.	Ensuring a safe and secure working environment Respect for human rights Respect for diversity Development and utilization of human resources	Hotline Personnel affairs division Safety and Health Committee Labor Union (Indonesia) and periodical meetings Joint Japan-Indonesia interactions and other events
Regional Society	DMC business activities vitalize the areas we serve while respecting regional cultures and customs around the world.	Social contribution through business Through cooperation with local businesses Regional vitalization Respect for regional cultures and customs Protection of the regional environment Creation of employment	Regional volunteer activities Interactions with local businesses Factory visits Support for restoration from disasters Contact information Internship system and school visits in the local communities
Supervisory authorities & Local governments	DMC understands the laws and regulations of each country where we conduct business. We also interact with regional governments to vitalize local areas.	Compliance to laws and regulations Cooperation to solve social issues Regional vitalization through cooperation with local governments	Making proposals to solve social issues Information exchange with local governments

SDGS

Approaches to Sustainable Development Goals (SDGs)

DMC places a priority on responding to the needs and requests of its business partners, customers, and other stakeholders through its business to fulfill its social responsibility and promote approaches to the sustainable development goals (SDGs) adopted by the United Nations.

What are SDGs?

The SDGs comprise 17 goals and 169 targets set by the United Nations in September 2015 in “Transforming our World: the 2030 Agenda for Sustainable Development.” Under the leadership of the United Nations, many countries have pledged their cooperation to address social and economic development issues such as poverty, gender equality, and social justice within the 15 years from 2015 to 2030 with the hope of realizing a world in which no one is left behind.

Relationship between SDGs and DMC Business

We are working to meet the demands and expectations of various stakeholders in relation to the SDGs.

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Related Goals	DMC Approaches with SDGs
Ensure healthy lives and promote wellbeing for all at all ages	Development and manufacture of medical-use touchscreens Employee health promotion (Mental health) Development of touchless functions
Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all	Human resource cultivation (Support for employees wishing to acquire specialized knowledge, the provision of both group training at different levels and in-house training and seminars, and the cultivation of global human resources) Development and production of touchscreens for electronic blackboards used in correspondence education programs
Achieve gender equality and empower all women and girls	Promotion of diversity (Promotion of social participation by women)
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all	Work-life Balance (Approaches to ensuring appropriate working hours/ Support for child rearing and nursing care) Promotion of diversity (Continuation system/ Promotion of employment of individuals with disabilities) Prevention of industrial accidents through the promotion of 5S
Reduce inequality within and among countries	Protecting human rights (In-house rooting of human rights policy/ Compliance with human rights policy) Development and manufacture of touchscreens responding to multi-language needs
Realize the development of comprehensive, safe, resilient and sustainable cities and living environments	Contribution to communities using valuables produced in the process of appropriate waste management and effective use for welfare activities
Ensure sustainable consumption and production patterns	Publication of Sustainability Report Reduction of waste Chemical substance management Development and manufacture of durable touchscreens with weather resistance Sustainability procurement (Implementation of procurement policy and guidelines, conducting questionnaires) Afforestation (Mangrove seedlings) · Reduction in the use of paper Development and manufacture of touchscreens corresponding to touch pen operation to realize paperless meetings Reduction in the use of paper Promotion of paperless operations
Take urgent action to combat climate change and its impact	Reduction of CO2 emissions Environmental education (Holding seminars on quality control and environmental management systems) Water resource conservation Preparation for natural disasters caused by climate change through BCP
Promote peaceful and inclusive societies for sustainable development, provide access to justice for all, and build effective, accountable, and inclusive institutions at all levels	Compliance with domestic and foreign laws and customs Adherence to compliance Ensuring information security

VOICE

Promoting diversity by increasing the number of female managers through the Successor System, in which managers nurture their successors

Hikari Ono : Personnel Department

— Secret strategies to increase the number of female managers

Although the percentage of women in the overall workforce is not low, only a small number of women are in managerial positions. The reason for this is that there are not enough training opportunities for female employees, and an environment and culture in which women actively seek management positions has not been developed, resulting in a higher percentage of male managers. To address this issue, we began an initiative in FY2019 to designate successors for management employees, and to train the successor to allow them to act on management's behalf. We aim to create a system that can flexibly respond to changes in employees' life plans, such as temporary departures for child-rearing or other reasons.

— Gender equality throughout the industry

If female managers are not uncommon in a company, it will be a natural choice for women to pursue career advancement. Of course, it is up to the individual to choose whether or not to do so, but we believe that the company's responsibility is to make an effort to increase career options. Especially in the field of industrial equipment manufacturing, including our company, I feel it is still dominated by male workers. It is exciting to imagine when not only our company, but the industry as a whole, will no longer have a gender gap in its true sense.

Mid- and Long-term Sustainability Policies

In FY2021, we revised the Sustainability Mid- and Long-term Policies to the Mid- and Long-term Sustainability Policies. We aim to achieve our Mid- and Long-term Sustainability Policies by sharing the results, issues, and improvement measures for each fiscal year internally and implementing the PDCA cycle.

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Fields	Items	Mid- and Long-term Policies	FY2021 Targets	Assessment	FY2021 Achievements	FY2022 Targets	Contribution to SDGs
Product Safety & Security	Product Safety & Security	Continual operation of quality management system	Reducing compensation for complaints by 27% compared with the previous year	x	Reducing compensation for complaints by 25% compared with the previous year	Reducing compensation for complaints by 13% compared with the previous year Improving understanding of ISO 9001 requirements (learning through content distribution throughout the entire company: 60 times or more per year)
Respect for Human Rights	Human Rights Protection	Establishment and operation of the system that develops human rights awareness	Continuation of human rights seminars for newly hired employees Holding nonregular moral seminars, and delivered education materials to increase awareness of human rights, harassment, and compliance (once a month)	○	Implementing human rights and compliance seminars at the time of hiring Distributing educational materials to raise awareness of human rights, harassment, and compliance (11 times per year) Conducting moral seminars on human rights	Continuation of human rights seminars for newly hired employees Holding nonregular moral seminars, and delivered education materials to increase awareness of human rights, harassment, and compliance
Labor Practices	Promotion of Diversity	DMC develops and utilizes a wide variety of human resources to reinforce diversity management.	Continual cultivation of female employees with leadership potential Continually holding seminars about knowledge and skills required for employees in managerial positions	○	Continued improvement of knowledge and skills through management seminars (12 times per year) Formulation of the Action Plan in the Promotion of Women's Activities to increase the number of female managers (2024 target: the same ratio of female managers as male managers)	Implementation of the Action Plan in the Promotion of Women's Activities Creation of a development plan for managerial candidates by rank Seminars on the promotion of women's activities (at least once a year)
	Work-life Balance	DMC strives to maintain a working environment that allows employees to maintain a good work-family balance.	Total overtime per employee: Average of ten hours or less per month Ratio of paid-holiday use: 80%	△	Total overtime: Average 7 hours per month (Japan) Ratio of paid-holiday use: 53%	Total overtime: Less than 10 hours per month on average in Japan Ratio of paid-holiday use: 60%
	Human Resource Cultivation	DMC develops the abilities of employees to develop human resources that support business activities.	Holding seminars for different categories of employees such as newly hired employees, general employees, leaders, and employees in managerial positions	○	Training sessions by rank (22 times annually with 226 participants) Interviews with all employees to improve employee satisfaction	Seminars to develop the next generation of managers (including young employees and candidates: 25 times per year, a total of 200 people)
	Work Environment Safety	DMC promotes the health and safety of employees and conducts vigorous business management.	Health check rate: Maintaining 100% Influenza vaccination rate: 80%	x	Health check rate: 100% Influenza vaccination rate: 17%	Health check rate: 100%
Sustainable supply chain management	Sustainability Procurement	DMC promotes supplier compliance with Sustainability procurement guidelines and expands application to new customers.	Rate of submission of a Confirmation of Consent to Sustainability Procurement Guidelines from existing suppliers: 80% or more Making requests to new suppliers to submit a Confirmation of Consent to said Sustainability Procurement Guidelines	△	Rate of submission of a Confirmation ofConsent to Sustainability Procurement Guidelines from existing suppliers: 80% (based on procurement amount) Not implemented for new suppliers	Making requests to new suppliers to submit a Confirmation of Consent to said Sustainability Procurement Guidelines Conducting Sustainability procurement questionnaire survey (revised in FY2022)
Environmental Conservation	Environmental Conservation	DMC achieves carbon neutrality by 2050 and reduces CO₂ emissions in FY2025 by 26.6% compared to FY2018 (DMC, Indonesia Factory, and Iwaki Factory) DMC effectively uses energy and resources and contributes to environmental conservation through recycling and the reduction of waste.	Reduction of CO₂ emissions (Compared with the previous year) Collection of recyclable precious metals to reduce waste Collecting confidential documents and recycling to create regenerated pulp Reducing loss caused by design errors by 58% compared with the previous year	○	Reduction of CO₂ emissions: Scope 1 (55% reduction from the previous fiscal year) Scope 2 (22% reduction from the previous fiscal year) Study on the introduction of CO₂-free electricity Continued collection of recycled precious metals Amount of paper collected for recycling: 510 kg Reducing loss caused by design errors by 93% compared with the previous year	Reduction of CO₂ emissions (base year: FY2018) Scope 1 (55% decrease from base year) Scope 2 (10% decrease from base year) Contracts for CO₂-free electricity (Shirakawa Factory, Iwaki Factory) Reviewing air conditioning-related operations and considering / implementing equipment upgrades to reduce electricity consumption
Regional Contribution	Contribution to Regional Society	DMC contributes to the realization of a better society through social contribution activities as a company that continuously strives to maintain the trust of stakeholders.	Recycling activities through the collection of empty contact lens cases Accepting students from two high schools in Fukushima Prefecture into an internship program Cleaning local communities (April - November) Cleaning around the Shirakawa Factory Participation in Shirakawa Youth Association (volunteer activities, etc.) Returning part of profits from recycling to local communities	○	Recycling activities through the collection of empty contact lens cases Accepting students from two high schools in Fukushima Prefecture into an internship program Cleaning the Shirakawa area (April - November) Support for disaster victims through recycling monies and fundraising activities Participation in Shirakawa Youth Association (volunteer activities, etc.)	Recycling activities through the collection of empty contact lens cases Accepting students in Fukushima Prefecture into an internship program Expanding area for community cleanups (Tokyo, Osaka) (once a month) Continued support for natural disasters
Management Structure	Corporate Governance	DMC ensures transparency and fairness in its business activities, continues sustainable growth and increases corporate value.	Promoting transparent management through the provision of opportunities to communicate with stakeholders (employees, partners, local residents, shareholders, etc.) more than the previous year	○	Shareholders: Regular report meetings by the President, monthly reports Employees: Monthly report meetings by the President (twice a year during pandemic) Business partners: Held meetings with important business partners Local communities: Industrial park meetings, etc. not held due to the pandemic	Promoting transparent management through the provision of opportunities to communicate with stakeholders (employees, partners, local residents, shareholders, etc.) more than the previous year
	Compliance	DMC understands and follows both domestic and overseas laws, regulations, and customs, and it take action with a spirit of high corporate ethics.	Seminars regarding compliance: Four times a year Attendance rate: 80%	△	Seminars regarding compliance: Two times a year Attendance rate: 100%	Compliance seminars (for managers) (twice a year)	-
	Information Security	DMC establishes an information management system and promotes appropriate management of information assets based on its basic policy.	-	-	-	Verification and preparation of management systems for ISO 27001 certification
	Sustainability Management	DMC promotes Sustainability management responding to the needs of and requests from stakeholders and society.	Review of Mid- and Long-term Sustainability Policies and promotion of the achievement of targets	○	Review of Mid- and Long-term Sustainability Policies and promotion of the achievement of targets Setting CO₂ emission reduction targets	Review of Mid- and Long-term Sustainability Policies and promotion of the achievement of targets	-