Strengthen risk management

Principal Initiatives

It is vital to manage the risks associated with the globalization of business with the aim to fulfill social responsibilities towards stakeholders. In accordance with its management policies and Group Code of Conduct, Daifuku strives to build a global corporate culture that is resilient in emergencies, by sharing information about corporate risks across its Group to address all business risk responses and minimize the impact on corporate management.

Initiative materiality and relationship to SDGs

Promotion Framework

Under the direction of the CEO, we develop and promote risk management measures across the Daifuku Group. We organize the Risk Management Promotion Framework, which is comprised of the heads of each division based on the Risk Management Rules. Every year we conduct risk assessments across the Group, including at our non-Japan subsidiaries. The relevant divisions take measures to minimize and mitigate the impact of each identified risk as it occurs.

We have developed a Business Continuity Plan (BCP) for natural disaster risks (earthquakes, wind and floods, lightning, fire, new influenza strains). We also have a Compliance Committee to address legal risks from potential non-compliance, and an Information Security Committee that focuses on the Daifuku Group’s information security-related risks.

Compliance Initiatives

KPI（Key Performance Indicators）is an evaluation index to judge achievement of the CSR action plan.PDF （184 KB）

Compliance system KPI

We have set up a Compliance Committee that is chaired by our CEO, and also established a Group Code of Conduct (revised in April 2019 to enhance the group compliance system). Meanwhile, we are also carrying out activities to ensure compliance, equity, and morality within the Group. As a part of these activities, we are conducting company-wide compliance training to raise the compliance awareness of each of our employees.
To deal with the risk of serious legal violations particularly on a global level in recent years, we have enhanced our efforts to prevent bribery and observe competition laws in accordance with the Group Code of Conduct.

Specifically, as part of our efforts to prevent bribery and comply with the anti-corruption laws of each country, we have set up mechanisms such as a system to check in advance if there are any suspected acts of illegal payoffs, for example providing entertainment or exchanging gifts. In order to strengthen efforts to prevent commercial bribery in China, we have established new guidelines at our local subsidiaries, and conducted appropriate training. In terms of compliance with competition laws, similar to our efforts for preventing bribery, we have put into place internal rules that comply with the laws of each country, and we practice impartial and fair dealings.
Furthermore, in October 2019 we strengthened our compliance system with the newly set up Legal and Compliance Division. The CEO also sends out messages to all employees in order to raise their awareness regarding the importance of compliance.

Compliance education and training KPI

The CEO sends out messages to all employees via the company intranet to communicate the CEO’s stance on compliance. We are also providing continual education and awareness on compliance to all employees through various training programs, so as to thoroughly familiarize everyone with corporate ethics.

As business transactions with various countries and regions continue to increase with the globalization of business, we have been strengthening compliance education on anti-corruption laws and competition laws in each country. Also, for level-specific employee training programs, such as those for new employees and newly appointed managers, we are making efforts to establish and spread an awareness of compliance by ensuring the observance of various laws including the subcontractors act and security export control policies, as well as holding lectures on respecting human rights and outlining professional ethics. In fiscal 2019, we held 14 types of training and education events (target was 14 or more).

Training examples

• Position-specific training
• Grobal staff training
• Training for executives
• Seminars on compliance with competition laws and the prevention of bribery
• Presentations on internal reporting system and past compliance cases

Compliance Enhancement Month KPI

We have set every October as Compliance Enhancement Month, during which we conduct activities to raise the compliance awareness of our employees. This year’s program was a seminar introducing cases of fraudulent activities, which we held at our major business sites in Japan. Some of the initiatives so far to familiarize employees with compliance include featuring an interview between a compliance expert and our CEO in our in-house journal, and holding compliance-related round-table talks among staff of various levels and positions.

Providing legal information using the in-house network

We have established a "Daifuku Legal Center" database as a portal site that accumulates various legal information, and is easily accessible by employees. Staff at the legal department post daily on the legal affairs related blog on the in-house SNS, to provide employees with timely access to information and ability to easily exchange that within the Company.

Whistle-blowing system KPI

We are continuing to operate this system whereby reporting is possible on a global level. This time, with the establishment of a new corporate entity based in Vietnam, we have added Vietnamese as a reporting language. Additionally, in China we have brought the existing internal reporting system used within China into accordance with the global system, and established regulations to clarify the operation under both mechanisms.

UK tax strategy

Through material handling, the Daifuku Group aims for further growth by balancing business activities and social soundness. In addition to contributing to the development of the country and the region by implementing a fair tax payment, we disclose our tax strategy in the UK on the "Tax Strategy" page of our UK site.

Please refer to our UK site.

Compliance with Modern Slavery Act

In response to the Modern Slavery Act 2015 of the UK, the Daifuku Group has published an “Anti Slavery Statement 2020” on our UK website.

Anti Slavery Statement 2020PDF （358 KB）

Information Security Initiatives

KPI（Key Performance Indicators）is an evaluation index to judge achievement of the CSR action plan.PDF （184 KB）

Information Security Committee

As threats to information security are becoming increasingly advanced, ingenious and pernicious, it is vital to tackle them through continuous efforts and actions.
We established the Information Security Committee more than 10 years ago to maintain and improve information security across the Daifuku Group.
Considering the globalization of our business and the increasing role that the IoT (Internet of Things) plays for our products and services, it is more important than ever to promote the information security of our products and services. Through evaluating and countering IT risk factors embedded both inside and outside the company, we are promoting information security initiatives that are appropriate for a global enterprise together with our business operations.

Initiative guidelines

• Reinforce regulations and develop policies with the aim of raising the standard of the Daifuku Group’s information security as a whole
• Coordinate with business and investigate information security policies for products and services
• Quantify in a way that is aligned with the KPI settings and establish the objective evaluation of results

Framework for initiatives

Launch of CSIRT

The mission of the CSIRT (Computer Security Incident Response Team) is to deal with information leaks stemming for example from cyber attacks and respond to any other computer security incidents. The CSIRT is centered on the Information Security Committee, enabling Daifuku to swiftly identify the possible scope of an accident and damage, put first-response measures in place, and investigate causes and means to prevent reoccurrence.

Policies for information security countermeasures

Infrastructure aspect:
Threats to information security are on the rise and have become increasingly malicious. We therefore prepare for possible attacks through up-to-date and multilevel defense systems in cooperation with specialist security companies.

Human aspect:
In cases of information theft which use human psychological techniques or deceitful approaches, prevention is difficult if only relying on infrastructure countermeasures. We will enhance our employees’ information security knowledge and understanding through initiatives by the Information Security Committee, internal training programs and simulated cyber terrorism training sessions.

Participation rate in information security education and training KPI

In fiscal 2019 we were able to achieve a participation rate of 86.9%, which was slightly below our target of 90%. This was mainly attributable to the training implementation period (January to March) coinciding with the suspension of in-office work at local subsidiaries in China and Southeast Asia due to the spread of COVID-19. In addition to the conventional languages of Japanese, English, Chinese (Simplified & Traditional), Korean, and Spanish, this time we added education in Thai, thereby increasing the effectiveness of our global education.
We will continue to work on raising the participation rate in English-, Chinese-, and Thai-speaking countries that have not achieved the target rate, and provide information security education to employees to prepare them to handle the threat of the latest cyber attacks.

Number of training sessions conducted for targeted cyber attack emails KPI

The target for fiscal 2019 was to hold two sessions, and the actual number of sessions held was two. In addition to the conventional languages of Japanese, English, Chinese (Simplified & Traditional), Korean, and Spanish, this time we added training in Thai, and applied the training results and feedback on noteworthy points to increase the effectiveness of our training. We will continue to provide employees with training to prevent information leaks due to cyber attacks in the future.

Business Continuity Plan (BCP) Initiatives

We have established a BCP (Business Continuity Plan) for emergency situations. It places highest priority on human life, while also aiming to minimize damages to business assets and make the continuation and early recovery of business possible. Furthermore, we are expanding education, training and disaster prevention equipment related to disaster risk management, with the aim of heightening the effectiveness of the BCP. For our overseas group companies, in addition to our existing questionnaire surveys, we have implemented hearing surveys at each location to promote the ascertainment and sharing of the risks that can occur locally. Moving forward, we will further strengthen the BCP activities of the whole group and construct a corporate culture that is resilient in the face of emergencies.

KPI（Key Performance Indicators）is an evaluation index to judge achievement of the CSR action plan.PDF （184 KB）

BCP site basic survey (Daifuku affiliates and offices)

By periodically visiting all Daifuku Group sites worldwide, we ascertain the preparations needed for natural disaster risks, as well as exchanging and sharing information about risk related to compliance, information security and labor and health management.

BCP training and education

In order to heighten the risk awareness and understanding of BCP for each employee, we invite an external instructor every year to hold a BCP Seminar targeted at every staff member. In addition, for our position-specific training that includes new staff training, we continuously provide education to heighten risk awareness by implementing BCP training with content that matches the requirements of each person’s role. Due to the increased risk that comes from globalized business development, we work towards securing the safety of international travelers through the appropriate transmission of local danger information, not just to our overseas subsidiaries but also to our expatriate personnel.

Risk assessment implementation rate KPI

Risk assessment is a procedure to identify, analyze, and evaluate risks that can affect a business. We achieved a risk assessment implementation rate (return rate) of 100% in fiscal 2019. We are implementing business risk assessments for all Group companies including non-Japan subsidiaries, and we are working to quickly identify risks in business activities.

Number of training sessions conducted for supplier disaster situation reporting KPI

The target for fiscal 2019 was to hold two sessions, and the actual number of sessions held was four. We have been working with the procurement division of each business operation, and sharing information through training with targeted suppliers. We are repeatedly conducting training to enable the early sharing of initial reports during a disaster.

Obtained highest DBJ BCM Rating by the Development Bank of Japan

Countermeasures for disaster emergencies

COVID-19 measures

In accordance with the Basic Policies for Novel Coronavirus Disease Control by the Government of Japan, the Daifuku Group set up the COVID-19 Task Force headed by the CEO. Its priority is to limit the spread of and damage caused by infection both within and outside the company, and ensure the safety of all Daifuku Group and business partner employees. We will continue to follow government policies and action plans, and promptly determine and implement appropriate measures. The Task Force is currently assessing the situation at all Group companies and subsidiaries in Japan and overseas via online teleconferences and other methods.

Evaluation from Outside the Company

For more information, please refer to this page.