Society

Of foundational importance to the YKK Group's business activities is the concept of the Cycle of Goodness^®, which states that "no one prospers without rendering benefit to others." In order to carry out its business activities in accordance with this concept, YKK AP upholds the YKK Group Code of Conduct, which consists of 7 principles and 29 bylaws that employees of the YKK Group in all countries and regions must follow with a common understanding, and clearly states that it will not engage in discrimination or the violation of human rights for any reason. This policy complements one of the Code's principles, namely Respect for Human Rights, and both supports and respects international norms on human rights, such as the UN Guiding Principles on Business and Human Rights.

At a meeting on March 24, 2023, the YKK AP Board of Directors adopted the YKK AP Human Rights Policy Statement. Accompanying the revision of the YKK Group Human Rights Policy Statement, YKK AP has formulated its own policy that, while sharing the fundamentals of the YKK Group, takes into account the human rights issues that arise in relation to YKK AP's business activities.

YKK AP is aware that addressing the following human rights issues relating to its business activities is a key part of its human rights responsibilities and responds with the following appropriate procedures.

Based on the UN Guiding Principles on Business and Human Rights, YKK AP conducts due diligence with respect to human rights. Through this framework, we identify negative human rights impacts and work to prevent or mitigate them.

By assessing new human rights risks, the Human Rights Working Group (WG) established within the Compliance Committee is working to ascertain the current situation and evaluate these risks' importance and severity. In FY2023, a human rights impact assessment was conducted for employees in Japan. In accordance with the YKK Global Criteria of Compliance (YGCC), the YKK Group's compliance standards based on ISO 26000, human rights risks were identified by mapping an assessment of severity and likelihood of occurrence for each human rights issue. Based on the results of the assessment, we have established a governance system and preventive and corrective measures to reduce risks related to "long working hours," "discrimination," "harassment," "workplace accidents," and "leakage of personal information," and are stepping up our efforts accordingly. In addition to the risks identified in the human rights impact assessment, we are also pursuing zero-tolerance initiatives in the areas of "child labor," "forced labor," and "emergency planning and fire safety."
Regarding the supply chain, in FY2023, we began exploring the implementation of risk assessments. In FY2024, we are proceeding with a human rights impact assessment for our overseas employees.

If it becomes apparent that a YKK AP business, product or service has caused or contributed to a negative impact on the human rights of anyone affected by that business, product or service, YKK AP will deal with the concerned persons in good faith and work to correct the corporate activities that were the cause of the issue. Furthermore, if it becomes clear that there is a direct relation between a YKK AP business, product or service and a negative impact on human rights, or if such a relation is suspected, we will strive to remedy the situation by communicating with the related party. We will work to build systems by which we can receive the concerns and complaints of stakeholders and strive to solve problems or implement remedies. These systems will include internal and external communication channels by which people who have, or may have, suffered negative impacts to their human rights can communicate with our company.

Based on the idea of "autonomy and coexistence," YKK Group creates systems and environments in which each and every employee can demonstrate their full potential, regardless of age, gender, educational background, and so on. The goal is to create a "Forest Organization," a company in which every employee has a consciousness of being a manager, and grows strongly together as a group, like a forest that is made up of individual trees. To create value as such an organization, we work to develop human resources and achieve truly fair personnel systems.
Regarding the reform of the personnel system, we are further focusing on "performance-based meritocracy" in terms of roles, under the philosophy of "fairness," "job (role)," and "autonomy," while aiming for equality of roles, results, and treatment regardless of age, gender, educational background, or nationality. In the past, we operated a system for the rehiring of retired employees up to age 65, but we abolished the mandatory retirement age system in FY 2021. This makes it possible for individuals to work regardless of their age as long as they are able to fulfill the role required by the company. The company supports independent working styles by clarifying the expected working methods and the abilities and experience needed to perform roles, and provides opportunities for employees to forge their own careers and put forth their own intentions.

YKK AP has issued the "Diversity & Inclusion Declaration" with the aim of utilizing the diversity of human resources to create new value and increase our future competitiveness in the international community. In addition to promoting systems such as flextime work and telework, a system has been in place since FY2022 that allows employees to apply for a change of work location if they wish to accompany their spouse on a job transfer, allowing them to continue their careers without having to resign. In addition to establishing environments and designing systems that enable a diverse range of human resources to play an active role, as priority issues, we are striving to strengthen the hiring of female employees and support their career development, as well as to expand and consolidate the employment of persons with disabilities.

In Japan, we have been conducting an engagement survey of YKK AP Group employees, excluding temporary employees, since FY2021. Although FY2022 saw a decline in engagement to 49%, this figure rose to 50% in FY2023 with a reduction in overtime rates and an increase in the take-up rate of annual paid leave. Engagement as measured in this survey is considered one of the most important items with respect to human capital, and we will conduct follow-up on an ongoing basis.

We view the health of our employees and their families as a management issue, and under our "Health Declaration" adopted in 2018, we have promoted the establishment of a healthy environment, etc., to reduce lifestyle-related diseases and control psychological disorders. As such, we have been recognized as a "2024 Certified Health & Productivity Management Outstanding Organization (Large Corporation Division)."

The YKK Group sees the health of its employees are an important company asset, and we work with employees to promote good health by supporting the ability of each employee to continue working on good physical and mental health and reducing lifestyle-related disease and mental illness.

YKK implements various initiatives based on policies and plans formulated by the "YKK Group Health Promotion Council".

01. Take action to reduce lifestyle-related disease
02. Take measures to reduce mental illness
03. Take measures to support a balance between treatment for illness and work

We are promoting both prevention and treatment through a nationwide system of health management centers and industrial physicians. To prevent lifestyle-related disease, we are working to improve the quality of health management through employee health evaluations using a health management support system, promoting the implementation of post-checkup measures, and cooperating with the Health Insurance Society to encourage lifestyle improvements. We are also taking steps to create workplaces with zero secondhand smoke throughout the company. To prevent mental health issues, we are expanding mental health training, supporting self-care using a stress check system, and improving work environments.

We have established a health consultation service both inside and outside the company to promote the maintenance of employee physical and mental health. Inside the company, employees can consult with industrial physicians at business locations and nurses at health management centers, at any time. We also work with external organizations to provide appropriate mental healthcare for employees through counseling by e-mail, by phone, and via remote interviews. This program makes it possible for employees to consult with counselors about a wide variety of concerns regarding their future and their career, etc., and also promotes mental health and increases motivation for work. We help employees to engage in their work actively and comfortably through these efforts.

The YKK Group provides products in response to societal and market demands with particular attention paid to quality based on an integrated production philosophy. We adopted the YKK Group Quality Charter to make clear our stance of continuing to value this concept even as the times change.

In order to contribute to establishing a culture of product safety as promoted by the Ministry of Economy, Trade and Industry as well as to bring the entire company together and work as one to actively implement product safety efforts so that we can provide our customers with safety and security, YKK AP Inc. adopted the YKK AP Product Safety Basic Policy, comprised of the Product Safety Pledge and Product Safety Action Guidelines, at its Board of Directors meeting on November 21, 2008.
While the YKK Group has conducted its business activities centered on its commitment to quality since its founding, we will take this opportunity to further strengthen our efforts in pursuit of product safety.

We are working to realize a quality assurance cycle by feeding back customer requests to product development.

In addition, we have released "Ouchi de Showroom (showroom at home)," web content that allows visitors to get hints for selecting products from the comfort of their own home, just as if they were visiting a showroom.

The Field Technical Center (FTC), located in Fabrication Technology Department in the Manufacturing Division, was launched to provide technical support to enhance the competitiveness of distributors, as well as offering training and guidance on assembly and delivery to ensure product quality. Assigned to the FTC are 39 FEs, who work at 14 locations nationwide and are active on the front lines of installation sites. By expanding the educational program for FEs and providing technical guidance at training sessions for professional users in each area, we will ensure final quality and conduct education on defect prevention. Further, in addition to visiting the site and investigating the causes when a fault has occurred, they provide feedback to the FTC and Product Development, leading to improved products.

Less than five years after launching the YKK AP Certified Maintenance Technician Association in 2019, more than 300 technicians with a wide range of skills have now joined, strengthening our response capabilities. In addition, there are more than 600 certified maintenance technicians who have taken technical training courses sponsored by YKK AP and have cleared certain standards, and they play an active role in maintenance support in each area. We have also newly enhanced our warranty scheme, launching an extended warranty scheme on October 31, 2023. Through initiatives like this, we are committed to further improving our services to address our customers' future concerns.

YKK Group enforces a procurement policy consisting of organizational governance, human rights, labor practices, the environment, fair business practices, and consumer issues. This policy is used as a basis for conducting CSR procurement aimed at fulfilling our social responsibilities throughout the supply chain. In order to deepen mutual understanding with our business partners, we have established our Basic Principles of Procurement that stipulate the following five principles: Compliance with laws, regulations, and social norms along with fair and ethical transactions; Consideration for human rights and the labor environment; Consideration for health, safety, and the environment; Quality and product safety assurance; and Information security assurance.

For this reason, and so that we may promote mutual understanding with our trading partners, the YKK Group has specified the following requests as "Basic Principles of Procurement". We ask for your understanding and assent, and we hope that you will join us in the fulfillment of our responsibilities to society.

In FY2022, we conducted a CSR survey of 1,184 suppliers with whom we have concluded agreements on the Basic Transaction Principles. In FY2023, we conducted a CSR survey with more in-depth questions for our major business partners and 106 suppliers who handle particularly important materials and components.
We will continue to undertake improvement activities based on analysis of the results of this CSR survey and strive for mutual understanding with our suppliers.

With development and technical research bases in Kurobe and Tokyo in Japan, as well as in Germany and Indonesia, we conduct research, development, and verification on a global scale to create value from the customer's perspective and to improve our technological capabilities. In FY2023, we launched the Technical Research Division to step up research and study of new technologies with an eye to the future. Among other activities, it is engaged in the development of recycling technologies for product materials in order to achieve a circular society. We also conduct joint research with various research institutions and dispatch employees to graduate schools. Furthermore, we are putting our efforts into strategic management and application of intellectual assets, with the aim of improving our competitiveness and brand value through patent applications and ownership of patent rights.

YKK AP collaborates with all stakeholders, including employees, customers, business partners, and local communities, to continue being a company that is trusted by the community and loved by society. We strive to improve our corporate value by providing a place for dialog as necessary to be of use in business innovation and product quality improvement.
Our "Multi-Stakeholder Policy" is formulated based on a recognition of the importance of value co-creation between a variety of stakeholders - including employees, clients, end users, and regional communities - in our business operations according to YKK AP's Purpose of "We Build a Better Society Through Architectural Products." Please refer to the following link for details on our policy and our concrete initiatives at implementing it.