Sustainability

Message from the President

A New Era for TOMOEGAWA

Becoming “TOMOEGAWA CORPORATION”

In June 2024, TOMOEGAWA celebrated our 110th anniversary.

TOMOEGAWA’s journey began with “paper,” and has expanded to combine “electrical properties evaluation technology” with our production technologies of “paper making, coating, adhesion and powder.” By doing so, we have promoted the transformation of our business from a “paper manufacturer” to a “high-functional materials manufacturer.”

To reflect this diversification, we have decided to change the Japanese name of our company from “TOMOEGAWA PAPER CO., LTD.” to “TOMOEGAWA CORPORATION,” effective from January 2024. Accordingly, the English name of our company will also change to “TOMOEGAWA CORPORATION.”

Looking back at fiscal year 2023, the third year of our Medium-Term Management Plan

Fiscal year 2023 was the third year of our 8th Medium-Term Management Plan, which is due to conclude in fiscal 2025 (March 2026). In fiscal year 2022 we revised our strategy and objective values, and we have been implementing our initiatives with the following main areas of focus: (1) securing a stable revenue base, (2) achieving structural reform, (3) our growth strategy, (4) our investment strategy, (5) our Sustainability Transformation (SX) strategy, and (6) our Digital Transformation (DX) strategy.

In terms of results, our structural reforms were implemented steadily, our Semiconductor and Display-related Business and Security Media Business performed well from the start, and overseas sales revenue was boosted by the effect of the weak yen. In contrast, our Toner Business and Functional Sheet Business saw sluggish results due to the economic slump in China, which resulted in our total sales revenue and operating profit slightly underperforming the projections of the original plan.

In fiscal year 2024, while our business environment is likely to remain unpredictable, we will continue to promote our structural reform and growth strategy, and focus our efforts on achieving the fiscal year target (operating profit of 2.2 billion yen) and final-year target of 3.5 billion yen operating profit in 2025, as set out in the 8th Medium-Term Management Plan.

Initiatives toward sustainability

As we continue to promote our Sustainability Transformation (SX) strategy, one of the main areas of focus in our Medium-Term Management Plan, we will contribute in accordance with the following Basic Sustainability Policy, which we enacted in March 2023, utilizing our strengths as a company that specializes in development.

TOMOEGAWA’s Basic Sustainability Policy

TOMOEGAWA CORPORATION has continued to, and will continue to contribute to the realization of a sustainable “better world (society, environment, and governance),” through “maximizing profit by way of customer satisfaction through the launch of new products and new technology” on the basis of our founding principles of “integrity,” “social contribution,” and “pioneering spirit.”

  • Initiatives toward Social Issues
  • Initiatives toward Environmental Issues
  • Initiatives toward Respecting Human Rights and Maximizing the Value of Human Talent

On the basis of this policy, in order to promote sustainable management, we have newly established a Sustainability Committee chaired by our President and CEO, and have classified tasks connected to ESG (Environmental, Social and Governance)-related environmental and social issues submitted by our respective business divisions, identifying seven materialities that we will tackle with the highest priority as a company.

  • Improving Productivity and Creating New Value through Technological Innovation
  • Achieving Reduction of our Environmental Impact
  • Providing Safe and Reliable Products
  • Strengthening Our Partnerships
  • Raising Management Efficiency through Structural Reform
  • Strengthening Human Capital, Diversity and Inclusion
  • Strengthening Corporate Governance and Compliance

The Sustainability Committee was convened twice in fiscal year 2023, and is working on problem-solving initiatives with actions such as launching a Specialist Committee in addition to the existing organization, and promoting development of environmentally-conscious products utilizing our technologies as described below, as well as activities aimed at the reduction of greenhouse gas emissions.

Creation of new value with new products and new technologies

Among these seven materialities, we particularly wish to emphasize “Improving Productivity and Creating New Value through Technological Innovation.”

The TOMOEGAWA group provides various solutions under our “iCas” brand for controlling “heat, electricity, and electromagnetic waves” that are capable of handling the high voltages, large currents, and high frequencies that accompany the widespread adoption of 5G and acceleration of Digital Transformation (DX).

Within this “iCas” brand, our products with improved heat and electrical control performance have the potential to contribute to the reduction of energy consumption required by the Sustainable Development Goals (SDGs). For example, our flexible planar heater, which received Tokyo Electron’s Environmental Award, can be positioned to adhere closely to the heated area, thereby achieving an energy-saving effect. We continue in our efforts to develop other products that lead to efficient energy use.

In addition, we have developed and are currently expanding our “GREEN CHIP” product line, an environmentally-conscious brand aiming toward conservation of natural resources. “GREEN CHIP CMF” is a resin mixed with wood-derived cellulose fibers. In comparison to polypropylene resin, our blended grade using 55% cellulose fiber can be anticipated to lead to a reduction in CO2 emissions throughout the process from manufacture to incineration.

Response to environmental issues

One of our major tasks is to adapt toward the realization of carbon neutral industry, as is currently being discussed on a global scale. For a number of years, we have worked on efficient energy use and energy-saving initiatives, and in fiscal year 2023, we have achieved the Japanese government's target of 46% reduction of CO2 emissions compared to fiscal year 2013. In addition, our diversification from the high energy-consuming paper making industry has also greatly contributed to the reduction of our CO2 emissions. Furthermore, we have engaged in forest management since the immediate postwar period, with our corporate-owned forest now reaching 3,031 hectares. This contributes to CO2 absorption, soil and water conservation, preservation of biodiversity, and other SDGs-promoting initiatives. By continuing to engage in our forestry conversation work, we will further improve the rationality and objectivity of our emissions data while tackling the reduction of our CO2 emissions, as well as continuing to lower our environmental impact and contributing to the conservation of the global environment going forward.

Initiatives toward enrichment of human capital

As part of our contribution toward a sustainable society, we also promote the enrichment of human capital. We consider our human resource strategy to be the basis of our management strategy, and that “maximizing the value of our human resources” by investing in “human resources” leads to improved corporate competitiveness, resulting in enhanced corporate value in the medium to long-term. We are working on initiatives aimed at human resource development, active use of diverse human resources, and the creation of a vibrant and comfortable workplace environment.

Furthermore, our improvement activities focusing on manufacturing sites and our initiatives to optimize work efficiency have enabled us to succeed in implementing a virtuous cycle of the following steps, 1) →2) →3) →1) → (...).

  • 1) Company-wide approval initiatives (company-wide praise for outstanding examples of improvement, promotion of horizontal expansion)
  • 2) Further enhancement of employee motivation and skills
  • 3) Improvement of equipment stability, operational efficiency and work efficiency → Dramatic increase in productivity

The above loop manifests as an activity that encourages all employees to constantly use creativity and ingenuity, and to take on new challenges. We consider this to demonstrate that our corporate culture reforms implemented over the past several years are steadily producing results.

Going forward, we will continue to strive to “transcend accepted conventions and organizational barriers, harness the strength of individuals and teams, and develop inspiring new ideas” in our role as “an idea-driven global solutions partner,” as stated in the vision of our management philosophy.

Conclusion

TOMOEGAWA values dialogue with all our stakeholders, and strives to further enhance our strong relationships of trust while fulfilling our accountability obligations.

We greatly appreciate your continued guidance, encouragement, and support for TOMOEGAWA and our group companies.

President and CEOYoshio Inoue

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