Category InitiativesResponsibleorganizationNumerical targets (if applicable) Structure for promotion, action taken and degree of attainmentSelfevaluation1. Safety and quality1-1. Understanding customerneeds, providing productsthat benefit societySales Division,R&D Division andQuality AssuranceDepartment? Proactively seek to know the latest customer needs through meetings, etc.? Process inquiries and estimation requests in accordance with prescribed workflows and pass them on to the relevant sectionsthrough in-house computer networks? Update customers’ product requirements and pass this data on to the relevant sections in a systematic manner? Analyze collected market information and pass it on to the relevant sections in accordance with prescribed workflows? Inspect products prior to delivery in a systematic manner to verify performance in the actual usage environmentB1-2. Providing informationon products in an appropriatemannerSales Division andQuality AssuranceDepartment;production sites? Provide appropriate information on R&D phase technologies in accordance with prescribed workflows? Provide information in a systematic manner on product composition, such as chemical content, in accordance with customer andlegal requirements? Collect information on product failures and share such information in a systematic manner1-3. Ensuring product safetyR&D Division andQuality AssuranceDepartment;production sites? Verify the safety of pre-productions pursuant to the prescribed operation procedures? Examine and verify conformity to legal and safety requirements as well as market and customer needs in a systematic manner atthe R&D phase? Quality risk items requiring compliance with legal and safety requirements are identified and are closely controlled? For defective products that are found after the start of mass production, ensure appropriate processing in accordance with prescribedworkflows that set forth procedures to check the details of the defect, analysis of magnitude and actions to be takenagainst its recurrence1-4. Ensuring productqualityQuality AssuranceDepartmentQuality Management System SteeringCommittee (once a month)? Establish and apply quality management systems within an organizational structure designed to assist quality management activities? Quality management activities are constantly pursued using the PDCA method, with policies and targets being formulated foreach fiscal year? Integrate product development processes at locations worldwide while reviewing Advanced Part Quality Planning (APQP)? Acquiring and maintaining the ISO 9001 and ISO/TS 16949 certifications2. Human rights and working environment2-1. Abolishment of discrimination(ensuring equalemployment opportunity)HR Department ? Wage structure and personnel evaluation system are set forth irrespective of gender? Gender is eliminated from items verified at the examination for wage raise and promotionB2-2. Respect for humanrights (prevention of harassment)HR Department,ComplianceCommitteeActivities aimed at raising associates’awareness of compliance (twice a year)? Conduct “compliance proficiency tests” aimed at raising associates’ awareness of compliance across the board (twice)? Internal consultation service has been established and announced companywide? Whistle blowers are protected under the prescribed in-house rules2-3. Abolishment of childlabor HR Department ? The Company demands newly recruited employees to submit documents to identify their age under the rules of employment2-4. Abolishment ofenforced labor HR Department ? Although the company may check employee’s passport for proof of identity, the submission of a passport is not required2-5. Appropriate wages HR Department Confirmation of minimum wage set forthby local governments (once a year)? The Company is comparing its wage levels and minimum wage set forth by each prefecture, ensuring that it is complying with thelaw (implemented utilizing a wage database system)2-6. Working hours HR Department? In accordance with an agreement with the labor union, notification of overtime work exceeding prescribed baseline hours must besubmitted and permission gained in advance? Attendance management system is utilized to verify whether working situations are complying with the Labor Standard Law2-7. Communication andconsultation with associates HR Department ? Frequency of labor-management consultations as well as matters to consult with are set forth in labor agreement2-8. Safety and health ofthe working environmentCentral Safety andEnvironmentCommittee? Annual activity plans for safety countermeasures and sanitary control at workplaces are formulated and implemented by the Safetyand Health Committee? FRESH Center and Health Management Office formulate annual activity plans for health management and manage their implementation? Introduced standardized safety manuals for global locations based the manual used in Japan2-9. Human resources nurturingHR Department Education programs for each rank andjob role (once a year for all)? Education programs for associates tailored to their rank and job roles are implemented (conducted programs for newly appointedteam leaders on two occasions, those for newly appointed assistant managers and for new managers on one occasion each andthose for newly hired associates on two occasions)3. Environment3-1. Environmental managementGlobal EnvironmentCommittee, etc.Renewal of the ISO 14001 certificationsEnvironmental education? Renewed the ISO 14001 certifications at AKBT (Thailand), Yamagata Manufacturing, Ai-City Headquarters, TatebayashiFoundry and other locations (see page 36)? Began providing online educational programs with regard to environmental activities (see page 36)B3-2. Reduction of greenhousegas emissionsGlobal EnvironmentCommittee (CO2EmissionReduction Project)Set voluntary target to reduce CO2 emissionvolume by 7% on average from fiscal2008 to fiscal 2012, compared with1990 (in reference to JAPIA target value)? Reduced CO2 emissions 16% (compared with 1990 level) in fiscal 2012 through the utilization of waste heat from in-house powergenerators to operate boilers and the introduction of energy-saving compressors (see page 38). The average reduction rate over thefive fiscal years from fiscal 2008 to 2012 was 18% (compared with 1990 level)Global EnvironmentCommittee(logistics environmentsectional committee)Improvement of transportation efficiency: settarget to reduce energy intensity 1% year onyear basis (in reference to revised EnergyConservation Law)? Reduced energy intensity 1.6% year on year through efforts aimed at improving transportation efficiency, including a review of transportationroutes (see page 46) and the introduction of energy-saving trucks3-3. Preventing pollution ofenvironment (air, water andsoil)ManufacturingDivisionContinued efforts aimed at reducingenvironmental impact? Improved the quality of wastewater through such means as stepping up aeration* and the additional installment of oil skimmingdevices (The average BOD** between five domestic locations was improved from 5mg/l to 3mg/l)*Oxygenate wastewater to facilitate the decomposition of pollutants**Biochemical oxygen demand: One index for measuring water pollution; (standard value is set at 25mg/l)3-4. Resource saving andwaste reductionGlobal EnvironmentCommittee (zeroemissionssectionalcommittee)Maintenance of zero-emissions status (nodirect landfill of waste)? Zero-emissions (no direct landfill) of waste sand was accomplished in fiscal 2012 for the second consecutive year through theefforts such as recycling of sand into cement raw material (see page 40)3-5. Chemical substancemanagement R&D DivisionResponse to regulations on copper used infriction materials set forth by states ofCalifornia and Washington, the UnitedStatesAfter January 1, 2021, materials for newautomobile containing 5wt% of copper ormore are going to be prohibitedAfter January 1, 2025, materials for newautomobile containing 0.5wt% of copper ormore are going to be prohibited? The Company is developing copper-free friction materials. The development is completed for rear brakes and ongoing for frontbrakes? Chemical substances designated by PRTR laws contained in newly developed friction materials are checked and tracked4. Compliance4-1. Compliance with lawsand regulationsComplianceCommitteeCompliance Committee meetings (sixtimes per year)Compliance understanding tests (twice ayear)? Compliance Committee meetings are held six times a year and relevant issues and initiatives are discussed? Conducted “compliance proficiency tests” for all domestic associates to improve their understanding, in addition to other relevantactivities implemented in line with priority themes set for each fiscal year (the tests were conducted on two occasions in fiscal2012)B4-2. Compliance with competitionlawsComplianceCommitteeProvision of training sessions themed onrelevant laws (seven occasions per year)? Training sessions: three sessions focusing on the prevention of private monopolies and cartels and four focusing on Japan’s “ActAgainst Delay in Payment, etc. to Subcontractors”? The Company raises alerts, regularly sharing data on the latest cases of legal violations through intranet4-3. Corruption prevention ComplianceCommittee? The Company raised awareness of the issue of illicit contributions, including political donations, and bribery by distributing bookletsthat present action guidelines for associates at domestic and overseas locations4-4. Control and protectionof secret informationComplianceCommitteeAudit and review of trade secret managementon an annual basis? Conduct audit and review of the status of trade secret management on an annual basis while raising alert over the handling of suchsecrets by distributing booklets presenting the action guidelines for associates at domestic and overseas locations4-5. Control of export transactionsComplianceCommitteeProvision of training sessions themed onrelevant laws (twice a year)? Export transactions are managed and overseen by structures set forth in the in-house rules and processed with prescribed operationflow provided by such rules? The Company submitted the “Export Control Rules for National Security” to the Ministry of Economy, Trade and Industry, and isregistered as an exporter? Training sessions themed on relevant laws were held to raise associates’ awareness of compliance (twice a year)4-6. Intellectual propertyprotectionLegal & IntellectualPropertyDepartment? In fiscal 2012, established the R&D Patent Committee to regularly confirm the latest patent information throughout the year. Theactivities are planned to continue in fiscal 2013 and beyond? Incorporate patent clearance into essential procedures set forth in ISO manuals so as to confirm noninfringement at everydesign review (peer review held to control product development process)5. Informationdisclosure5-1. Information disclosureto stakeholdersCorporateCommunicationsOfficeThe issuance of the AKEBONO REPORT(once a year, both in Japanese andEnglish) and fact sheets (Japanese version:four times a year; English version:twice a year)? Information is appropriately disclosed to stakeholders, including mass communication media, shareholders, investors and associates,giving sufficient consideration to the content and the timing? Matters such as financial conditions, performance and business activities are disclosed through such media as TDnet andEDINET pursuant to the rules of information disclosure set forth by such media? Update the Company’s websites as needed to improve visibility and to ensure that the latest information is disclosed? The Company issues “AKEBONO REPORT,” which integrates the corporate brochure, CSR report and annual report for the convenienceof stakeholders? The Company produced a video introducing its activities to general publicB6. Riskmanagement6-1. Companywide risk managementstructureRisk AssessmentCommitteeRisk assessment meetings (four times ayear) ? Risk assessment meetings are held periodically to follow-up on the outcomes of initiativesB6-2. Formulation ofbusiness continuity planNatural DisasterCrisis ManagementProjectDisaster drill focusing on the cooperationbetween locations (once a year)? Continued to improve the level of first emergency response through the update of response plans, the implementation of earthquakedrills and the preparation of disaster response manuals. Future issues include reinforcing the Group’s BCM while improvingits BCPs, developing such plans as those aimed at restoring damaged facilities and ensuring seamless operations7. Socialcontribution7-1. Contribution to localcommunitiesGeneral AffairsDepartmentMeeting with local residents for theexchange of opinions (once a year ormore)Summer festivals (once a year)Voluntary cleanup activities at the localareas (twice a year)? Regularly hold meetings with local residents for the exchange of opinions (three meetings were held in fiscal 2012 attended by43 people in total)? Voluntary cleanup activities at the local areas are undertaken by associates regularly (such activities were held 15 times in fiscal2012 with 604 associates participating in total)? Sponsoring summer festivals every year (such festivals were held at six domestic locations in fiscal 2012 with a total of 7,507people participating)? Co-sponsored test-driving event inviting 108 students from Iwaki City, Fukushima Prefecture, with the aim of encouraging youngpeople whose lives had been damaged by the Great East Japan EarthquakeB8. CSR promotionstructure8-1. Structure for developingCSR activities inside theGroupCorporate BrandingManagement Office? CSR activities are led by the Corporate Brand Management team under the recognition of “CSR is indispensable for corporatebrand management and an essential for continuing our business operations”? Each relevant section and committee sets targets and evaluates achievements on a separate basis. The Company recognizesthat those initiatives must be integrated and promoted on a Groupwide basis in the future B8-2. Structure for developingCSR activities involving suppliersPurchasing Division? Work to nurture more favorable partnerships with suppliers, strictly comply with relevant laws and regulations and the principlesof fairness and equity in conducting business transactions? Revised the Green Purchasing Guidelines in February 2012 to step up green procurement effortsCSR Promotion Status (in-house: fiscal 2012)Explanatory note:A: 5.0 points, B: from 4.0 to 4.9 points, C: from 3.0 to 3.9 points, D: 2.9 points and belowPoints represent result of self-evaluation on a scale of 1.0 to 5.0 points that was implemented in reference tothe “CSR Check Sheet (revised version as of April 2010)” formulated by JAPIA