1-1.Our Approach to Sustainability Management

Basic Policies of the Long-Term Management

As part of our alignment with the sustainability philosophy and initiatives of the Taiyo Holdings Group, and under our long-term management concept, 'Beyond Imagination 2030,' we have set strengthening our commitment to the Sustainable Development Goals (SDGs) as one of our basic policies, and we have been actively working on sustainability initiatives for a long time.

CSR Basic Philosophy

Since commencing pharmaceutical manufacturing at our current location in December 1933, Taiyo Pharma Tech has continued to grow thanks to the trust placed in it by the stakeholders, including its shareholders, customers, and business partners.
In order to continue to respond to that trust and grow together, all directors and employees of Taiyo Group will fulfill our corporate social responsibilities by taking a consistently forward-looking approach to business activities and observing ethics and laws. In order to fulfill these responsibilities, Taiyo Group has established a corporate CSR Philosophy and a Code of Conduct. It is involved in various CSR activities through its CSR organization, which comprises various management systems and committees. The directors and employees of Taiyo Group will strive to create a company that is trusted by society and is actively involved in CSR activities.

1-2.CSR Philosophy

CSR Philosophy

We will discharge our corporate social responsibility, including complying with the law, protecting the environment, ensuring thorough quality management, and contributing to society.

1-3.Code of Conduct

Code of Conduct

In order to put our CSR Philosophy into practice, Taiyo Group will abide by the following items:

1. Ethical and Legal Compliance

We will observe laws and other social norms, and understanding the spirit thereof, will act openly and fairly.

2.Workplace Environment

We will respect employees' human rights, and create a workplace that is fair and free of discrimination.

3. Fair Business Dealings

We will deal with all our business partners in an honest manner and conduct business with them based on impartial and fair business conditions.

4. Respect for Stakeholders

We will always conduct business activities with respect for the viewpoints of all our stakeholders, and disclose information in a timely and appropriate manner.

5. Ensuring Confidentiality

We will work to ensure the protection of confidential information related to our business partners, the company itself, and any individual.

6. Ensuring Quality (Quality Policy)

We will ensure that we always provide safe, quality products that satisfy our customers.

7. Protecting the Environment (Basic Environmental Philosophy)

We will endeavor to protect the environment as part of the performance of our social responsibility, and will engage in business activities that are in harmony with the environment.

8. Ensuring Information Security (Basic Information Security Philosophy)

In the interests of customer trust and satisfaction, we will work to maintain or improve the confidentiality, integrity, and availability of all our information assets.

9. Social Contributions

As members of society, we will engage in activities that contribute to society.

10. Protecting Intellectual Property

We will take appropriate precautions to protect Taiyo Group's intellectual property rights, and those of third parties.

11. Exclusion of Anti-social Forces

We will take a resolute stance towards anti-social forces and will not respond in any way to illegal or improper demands.

1-4.Compliance

1-4-① Compliance Hotline System

1-4-② Efforts Regarding Compliance

Compliance Activities

Our company has established a compliance promotion system and has developed various relevant regulations, including a "Code of Conduct." We continuously promote the cultivation of ethics and legal knowledge among each and every employee.
In addition, we have established an internal reporting system (hotline) in line with legal requirements and are also promoting initiatives against antisocial forces in order to maintain and improve public trust and encourage sound business practices. Within our portal site, we have established.
We operate a site specializing in compliance and broadly share these activities with all employees.
We distribute educational materials and information and provide training materials related to compliance through this website as we make progress in creating a structure that enables all employees to participate in compliance activities with more familiarity.

Compliance Training

Our company provides continuous employee compliance training to promote understanding of the risk factors at the individual level and the spirit of compliance with ethics and laws during the course of business activities
In the fiscal year ending March 2025, in addition to the regular compliance training for new employees, we conducted harassment training for managers and leaders.
Moving forward, we will work to improve our educational and awareness-raising activities in ways that lead to the practical application of compliance education in our work, leading to better business results and creating a motivating work atmosphere.

Anti-Corruption

Our company considers the prevention of all forms of corruption, including bribery to public officials, excessive entertainment and gifts, collusion, embezzlement, and breach of trust, as one of the most important compliance issues.
We focus on ensuring a sound management environment by enhancing our internal systems to appropriately address corruption risks and prevent their occurrence.

Risk Management

Taiyo Holdings wide-ranging business fields include electronics, medical and pharmaceuticals, ICT, fine chemicals, energy, and food, and we are also advancing business operations overseas.
To accomplish this, we perform risk management for each operational business department in which we identify, analyze, and evaluate the risks that exist at the various stages, from the company-wide level to the business processes level.
Information, including progress in the state of risk management at each business department, is reported to the responsible director, and we have built a system by which the appropriate measures are taken promptly.
In the event of an emergency, the Company ensures prompt reporting, information sharing, and implementation of countermeasures in accordance with the Risk Management System and Escalation Flow, and if necessary, establishes an Emergency Response Division to minimize damage (loss).
For risks reported from each business site, risk items that are expected to seriously impact company management are reported to the Board of Directors for deliberation.