The Group upholds Respect for Humanity in our Corporate Philosophy, aiming to build a better society through communication with customers, shareholders and investors, employees, suppliers and the people in the local community. The Shibaura Group Standards of Conduct also clearly requires us to respect basic human rights, refrain from discriminatory behavior, reject child labor and forced labor, and to ensure legal compliance. It also underlines respect for diverse individual values and characteristicsand for privacy, and that Shibaura Mechatronics Group will not engage in a discriminatory or violent behavior for reasons related to race, religion, gender, nationality, disabilities, age or sexual orientation, or act in a way that ignores human rights, such as sexual harassment and power harassment.

In September 2023, we established the Shibaura Mechatronics Group Human Rights Policy as complementary to the Shibaura Group Standards of Conduct and the Shibaura Mechatronics Group Sustainability Policy.

The Sustainability Committee promotes initiatives for respect for human rights based on the Shibaura Mechatronics Group Human Rights Policy, and reports the status of such initiatives to Board of Directors. The system to manage human rights risks is based on the Shibaura Group Risk Management System.

The Group has established the Risk Consultation Hotline serving as a consultation / reporting desk for employees. This service is available for employees for consultation and reporting concerning various matters including those related to human rights.

To achieve Shibaura Vision 2033, Shibaura Mechatronics Corporation has defined its “human capital vision.” More specifically, our human capital vision calls for “human capital capable of creating change and growing along with ‘the times,’ ‘customers,’ and ‘colleagues.’”
Our human capital vision consists of four elements, and we will apply specific personnel measures based on it.

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To secure human resources who meet our ideal human capital image, we are strengthening our activities to recruit both new graduates and mid-career employees. From the perspective of diversity in human capital, we also actively recruit female employees.

The Shibaura Mechatronics Group considers the following to be fundamental to the training and development of human capital: OJT that helps to achieve both the mastery of daily work by individuals and organization-wide workplace development as well as an internal educational curriculum and opportunities for each employee to simultaneously engage in self-development. Our internal educational curriculum consists of four pillars: new-employee education, job-based education,position-based education, and project-based education. It applies to domestic Group companies (not overseas Groupcompanies). We have also introduced “age-specific career training” to provide Company-based support that help employees envision their own future and grow autonomously. In addition to the “age-58 career training” we offered in the past, we also started offering “age-30 career training,” “age-40 career training,” and “age-50 career training” in FY2023.
We have already launched our age-specific career training at Shibaura Mechatronics Corporation, and we will consider expanding it in the future to cover all our domestic Group companies as well.

Shibaura Mechatronics Group education system

In terms of the promotion of women’s participation, the Group is aiming to achieve a percentage of managers who are female of at least 10% throughout the Group by FY2033. In recent years, the appointment of female managers has been on an increasing trend, and we will continue to actively appoint outstanding human capital as we work towards achieving our FY2033 target. We have also extended the childcare leave period up to the end of the fiscal year when the child reaches the age of three, implemented a short working hour system, and provided other support to help employees strike a balance between work and family. As a result, the return rate of female employees after taking childcare leave was 100% in the last ten years.

When male employees take childcare leave, it enables them to share responsibilities at home and more actively participate as fathers. In addition, it helps us create an environment that enables working parents to more easily strike a balance between work and family, thereby preventing them from having to leave employment. This also has a positive effect on the careers of women and their participation in the workplace.
Therefore, we will continue making sure male employees are aware of the importance of taking childcare leave to promote the cultivation of a more sustainable workplace culture.

In terms of helping employees return to work after taking childcare leave, we are developing our working environment and fleshing out our support structure for employees to improve their work-life balance, boost the retention of human capital, and reduce the risk of employees leaving.

By managing and promoting the health and productivity of employees and their families, we have established a corporate culture where all our employees can work in a lively manner. We will also strive to develop our working environment and implement system reforms to lay a foundation for the health and productivity of our employees and prevent lifestylerelated diseases as well as maintain and promote their health and productivity, thereby improving employee vitality and productivity.

The Group has established the Basic Policy on Safety and Health to promote safety activities requiring the full participation of employees, aiming for the creation of a safe and comfortable working environment and the maintenance and promotion of physical and mental health.
With regard to the promotional structure for safety and health, we have had each individual Group company establish a health and safety committee, and cooperate with the Risk and Compliance Committee to raise workers’ awareness of safety behavior, and spread basic measures, etc. The Risk and Compliance Committee also reports important matters related to occupational safety and health to the Sustainability Committee, and promotes Company-wide efforts for continuous improvement.

The Company implements the safety education recommended by the Semiconductor Equipment Association of Japan (SEAJ).
This is designed for workers working in a clean room to acquire necessary knowledge, aiming to provide basic knowledge to each worker, raise safety awareness, and ensure prevention and safety.

The Company conducts annual stress checks for all employees. To support employees taking a leave of absence for a long period of time due to a mental health problem, we maintain close collaboration with the health management room and make sure to continue to exchange information.
In the case that such employees wish to participate in a rehabilitation program provided by an administrative agency for returning to work, we will provide the necessary support for them to smoothly return to their workplace.

We ask our procurement partners to observe and implement the following requests. In addition, we ask that they understand our Procurement Policy.

We separately conduct individual surveys in relation to the above items and various requests based on them, and appreciate the cooperation of our procurement partners in such cases.

We implement education on the Subcontract Act for all employees by introducing an e-learning system, aiming to familiarize all employees with the act and raise their compliance awareness. We check the status of CSR procurement initiatives with our procurement partners, and work to improve each other's level.

The Shibaura Mechatronics Group has established the Green Procurement Guidelines as an entity to support manufacturing in order to promote the procurement of products friendly to the global environment through businesses, and will take it on together with procurement partners.

As part of our effort to realize quality assurance from the customer perspective, the Group has established the Basic Policy on Comprehensive Quality, which will lead to the improvement of customer service in terms of product safety and quality (function and performance).

Our quality management system (QMS) complies with the ISO 9001 international standard. We carry out appropriate reviews at every stage of a transaction, from the initial inquiry to the order, design, procurement, manufacturing, and testing, through to installation and service. Individual departments analyze and evaluate a variety of customer opinions and monitor changes in market trends, and we use the results to enhance our products and to maintain and improve quality.
As of May 2024, four of the Group’s bases* have been certified according to ISO 9001.
Currently, we are cooperating with Shibaura Eletec Corporation and four overseas subsidiaries which are essential for the supply of parts, and supporting our affiliated companies in improving their quality levels (quantifying specialized operations and conducting case studies), working on the enhancement of the quality control structure globally.

While promoting activities for eliminating accidents such as injuries and fires, we are addressing legal compliance viewing it as a top-priority issue, responding to changes in the market. At the time of an accident, the department in charge of products will take quick action to deal with it with other departments, and the quality department responsible for such products will immediately report to persons involved including top management based on the flow diagram for the handling of major accidents. The responsible department will discuss the process leading to the accident, the cause of the accident, and recurrence prevention measures, and make a report on the content of the discussion to the Company-wide QS^*1 Committee.
　(1) Quick reporting policy
　(2) Objective monitoring by a third party
　(3) Reviewing from management perspective
By taking the above three measures, we develop a completemanagement structure that is characterized by quickness totake action and agility for information transmission, and never allows a recurrence of accidents.

To ensure product safety, it is most important to give the highest priority to safety at the product design stage, and at the same time, we also bear a heavy responsibility as an equipment manufacturer to share information with our customers. Based on the results of a product risk assessment,we provide safety education to our customers an disclose information according to risks inherent to individual equipment. In FY2023, there was no case of violation related to the labeling of products (cases such as products compliant with regulations or certifications missing labels or having incorrect entries).