Stakeholder Engagement

The Daifuku Group operates our business in relation with not only our customers, but a wide range of people, organizations, and local communities around the world. Through dialogue with all stakeholders, our employees are committed to understanding the demands of society and changes in the market environment, and will help to achieve a sustainable society.

Dialogue with Primary Stakeholders

Stakeholders	Main societal expectations/demands	Main methods/opportunities for dialogue
Our customers	Achieving smart logistics through innovative technologies and optimal best-practice solutions The pursuit of product quality and safety Expansion of environmentally friendly products and services	Daily sales activities Featuring products at our demo center Hini Arata Kan Exhibiting at trade shows Enhanced after-sales service (customer stations, system support centers, etc.) Disclosure of information on our website Responding to customer surveys and audits
Our shareholders and investors	Sustainable business growth Enhancement of corporate value Appropriate shareholder returns Effective and transparent corporate governance Timely and appropriate information disclosure Enhanced disclosure of financial and non-financial information	General shareholders’ meeting Financial results briefing for institutional investors and analysts IR meetings with shareholders and investors Shareholders’ tour of our demo center Hini Arata Kan Disclosure of information on the website Corresponding with ESG rating agencies and responding to questionnaires Issuing integrated reports
Our suppliers	Building fair and equitable relationships Supply chain management friendly to the environment and human rights	Daily procurement activities Management and Safety Policy and Production Trends Presentation Supplier Quality Development (S.Q.D.) Award Surveys and visits to suppliers Supplier Operations Verification System
Our local communities	Environmentally friendly business practices Helping to revitalize local communities Making pro-social contributions to the community	Daifuku Sustainability Action Program Biodiversity conservation activity: Yui Project Volunteer activities in the community Cooperating with municipalities during disasters
Our employees	Thoroughly implement occupational safety and health Respect for human rights and diversity Creating a rewarding work environment Employee training	Safety and health training Various other training programs Conducting engagement surveys Whistleblowing system Issuing internal newsletters Labor-management dialogue

Communication with Our Customers

The Group provides products and services to customers across a wide range of industries worldwide. We strive to build strong relationships of trust by focusing on product safety and quality while sincerely addressing the increasingly sophisticated needs of our customers.

Exhibiting at trade shows

In September 2022, we exhibited at Logis-Tech Tokyo, one of the largest comprehensive exhibitions dedicated to material handling and logistics. We connected our newly renovated, experience-based demo center, Hini Arata Kan, to Tokyo Big Sight via fiber optic cables and used a large LED screen to introduce the products displayed there. Four new products were also displayed at a booth on site. We had over 10,000 visitors to our booth, and we were able to promote our products to a large number of people.

Communication with Shareholders and Investors

Promoting constructive dialogue with our shareholders and investors through our investor relations (IR) initiatives has significant implications for our sustainable growth and medium- to long-term enhancement of our corporate value. In accordance with Japan’s Corporate Governance Code stipulated by the Tokyo Stock Exchange, we formulated the Daifuku Group Basic Policy for Corporate Governance and Disclosure based on the principles of Japan’s Corporate Governance Code. Based on this, we are working to enhance dialogue with our shareholders.

Tours of demo center Hini Arata Kan for shareholders

Each year, we invite our shareholders to tour our demo center located within Shiga Works, Hini Arata Kan. Tours were suspended for a period due to the COVID-19 pandemic, but in fiscal 2022, tours were held for the first time in three years and were attended by 84 people over the course of two days.

Communication with Suppliers

We aim to build fair and equitable relationships with our suppliers and achieve healthy mutual growth. We are also working with our suppliers to achieve a sustainable society by partnering with them to reduce our environmental impact and respect human rights throughout the entire supply chain.

Supply Chain Management

Interviews with foreign employees at suppliers

In fiscal 2022, we advanced our efforts to identify, analyze, and evaluate negative impacts on human rights. The Group recognizes that the status of domestic foreign workers in the supply chain, including contractors, is a human rights issue that must be prioritized. As such, we selected two of our major suppliers that employ foreign nationals as technical intern trainees and specified skilled workers and visited them to conduct on-site interviews.

Human Rights

Communication with Local Communities

The Group has a number of sites and offices around the world where it conducts business operations, including both sales and production. Building good relations with communities at each site is a key goal for us and is essential to maximize our business activities. Accordingly, we strive to proactively communicate with communities through volunteer activities and collaboration with various organizations, while taking into account the cultures and legal requirements unique to each country and region.

Investment in local communities

Type	Content	FY2022 Investment amount（yen）
Environmental preservation	Donations from our Daifuku Eco-Action Program to environmental groups	3,170,000
	Cleaning and greening activities around Daifuku sites	2,750,000
	Biodiversity preservation activities	3,160,000
Community contribution	Regional Revitalization Team Project donations and activity costs	1,630,000
Nurturing the next generation	Visits to Hini Arata Kan from universities, vocational schools, and elementary and junior high schools	1,340,000
Total		12,050,000

Local procurement and local hiring

We believe that one of the activities that contributes to local economies is to procure in the vicinity of our operating areas. This can include parts, food, or other necessities. We are dedicated to the growth of communities through our procurement for Shiga Works and other regions. Also, we actively seek out talent in the vicinity of our sites and provide them employment opportunities. We will continue to contribute to the vitalization and advancement of regional economies through local procurement and employment.

Manufacturing event for science and engineering students

In September 2021, a manufacturing event was held for technical college, vocational school, undergraduate, and graduate students interested in hardware, software, and app development. 15 teams, including some from outside of Japan, took on the challenge of developing new services and prototypes under the theme of Recover.

Participation in Furugi de Vaccine

In fiscal 2022, Furugi de Vaccine events were held at all domestic locations. This initiative allows people to donate their used clothing (“furugi” in Japanese), and through these donations, proportionate amounts of polio vaccines are delivered to children in developing countries. Additionally, the used clothing collected is then sold in developing countries, creating local business and opportunities for employment.

Donation of emergency food reserves

In fiscal 2023, we renewed our emergency food reserves as part of our BCP (Business Continuity Plan), and with that donated a total of 754 cases of nutritionally balanced food to the Hino Town Council of Social Welfare, Second Harvest Japan, and two other organizations. The recipients of these donations provide food to facilities, organizations, and families (individuals) in need.

Regional Revitalization Team Project

Beginning in fiscal 2019, Shiga Works launched the Regional Revitalization Team Project to promote interaction between employees and the local community. In fiscal 2022, donation boxes made by employees were installed in each cafeteria, donations were made to a social welfare organization in Hino, Shiga, and sales and tasting events by local vendors were held in conjunction with walking events during lunch breaks at Shiga Works.

Watamuki Automobile Project

Daifuku is a participating member of the Watamuki Automobile Project, which was launched in April 2021 by Hino Town, Shiga Prefecture, to help realize sustainable public transportation. In fiscal 2022, we participated in a demonstration experiment for commuter and school buses. We are continuing our efforts to ease traffic congestion around our business sites, reduce our impact on the environment, and ensure safe and secure commuting through promoting the use of public transportation.

Community cleanup activities

Shakunage-gunraku, also known as Rhododendron Gorge, is a nationally designated Natural Monument located near Shiga Works. Since 2005, Daifuku has participated cleanup events organized by the Hino Tourism Association in April before peak season. In addition, we have been participating in the Omi Eco-Foster System promoted by Shiga Prefecture since 2001, cleaning up national roads around Shiga Works. In fiscal 2022, events were held 12 times with a total of 105 participants.

Nature conservation around Lake Biwa

Each year, employees from Shiga Works take part in a community activity together with local residents, companies, and environmental conservation groups to clip reeds surrounding Lake Biwa. It is essential to trim the overgrown reeds every winter to protect the reed beds, which play an important role in preserving the ecosystem and water health of Lake Biwa. The reed clippings are then used as raw materials for paper products.

Provision of a temporary evacuation shelter

Daifuku has established an agreement with Hino Town, Shiga Prefecture, to accommodate local residents in the event of evacuation resulting from a disaster. This agreement was broached after local residents requested that we provide Shiga Works as an evacuation site in the event of an emergency. After conducting a simulation of receiving evacuees and confirming the contents of the agreement with other companies near Shiga Works, we decided to enter into the agreement in the interest of social contribution.

Communication with Employees

Our corporate framework and measures reflect the views of our employees so that we can create an environment where each and every employee feels fulfilled in their work and can maximize their abilities. We aim to enhance our corporate value by improving the workplace environment and ensuring the health and happiness of our employees.

Workplace Environment

Kuruma-za, dialogue sessions between the president and employees

In fiscal 2022, Kuruma-za, dialogue sessions between the president and employees, were held at Shiga Works, the Osaka Headquarters, Komaki Works, and the Tokyo Head Office. Focusing on the management philosophy that was revised in fiscal 2021, each participant shared their thoughts and opinions on related measures.