Principal Initiatives

Daifuku has stated that our management philosophy, “Focus on healthy, growth-driven global management under a diverse and positive corporate culture," where we place our employees at the core of management. By enhancing the skills of each employee and performing to our utmost abilities as an organization, we believe we will be trusted by our stakeholders, which includes our customers and society as a whole. Since the environment surrounding our management is changing rapidly, we also believe that it is important to build a working environment that responds to globalization and diversity.
Based on this premise, the Daifuku Group respects international standards such as the Global Human Rights Declaration*, and as signature company of the UN Global Compact, we support the Ten principles of the UN Global Compact.

  • *Declaration adopted in 1948 by the UN General Assembly (in Paris) recognizing that all humans are born with basic human rights

Initiative Materiality and relationship to SDGs

SDGs pursued by Daifuku

Crown SportsSDGs pursued by Daifuku

Materiality

  • Promote diversity
  • Create a comfortable workplace environment
  • Promote human resource development

CSR Action Plan KPIs and targets for 2020

  • Ratio of female recruitment: 20%
  • Number of female employees in managerial positions: 20
  • Employment rate of persons with disabilities: 2.2%
  • Average paid leave utilization rate: 70%
  • Surveys of employee awareness (overall satisfaction points): 3.80 points (5 points max.)
  • Number of people who have TOEIC scores over 600: 200
  • Number of people certified by the Global Business Trainee Program: 300
  • Number of people enrolled in self-development e-learning programs: 300

Human rights initiative

Crown SportsIn April 2014, Daifuku joined Global Compact Network Japan (GCNJ), which is a local network of UN Global Compact (UNGC). The GCNJ partners with other participating companies and organizations and conducts activities aimed at realizing a sustainable society, by focusing on various subcommittees based on 10 principles in the four fields of human rights, labor, the environment, and anti-corruption. In fiscal 2019, we took part in the Environmental Management Subcommittee, Anti-Corruption Subcommittee, ESG Subcommittee, Disaster Prevention and Mitigation Subcommittee, SDGs Subcommittee, and the Reporting Research Subcommittee. We are working to solve various issues using the knowledge and findings that we acquire from these committees.

Promotion Framework

Crown SportsThe Human Resources and General Affairs Division is in charge of the establishment and promotion of cross-organizational initiatives related to human resources. In particular, it promotes the cultivation of human resources to support the global development of our business and the enhancement of our management. We have also set up the Mental & Physical Health Promotion Committee to establish a working environment that allows employees to work safely, as well as to promote various initiatives. In April 2017, we set up the Work-Style Reform Committee, with the aim of achieving work-life balance by providing a working environment suitable for diverse human resources and for improving productivity. We will continue to promote effective initiatives through the sharing of information with each department.

Diversity

Total number of employees by region (as of end of March 2020)

Employee Data (Daifuku Co., Ltd.)

Employee Data (Daifuku Co., Ltd.)
  FY2017 FY2018 FY2019
Number of employees Male 2,335 2,444 2,580
Female 297 328 348
Total 2,632 2,772 2,928
Average age Male 42.2 42.0 41.4
Female 40.7 40.9 41.3
Total 42.0 41.8 41.4
Average years of service Male 16.5 16.1 15.4
Female 15.0 14.6 14.6
Total 16.3 15.9 15.3

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Recruitment

Recruitment
  FY2017 FY2018 FY2019
Male Female Total Male Female Total Male Female Total
New graduate recruitment 71 9 80 70 14 84 113 9 122
Mid-career recruitment 87 5 92 95 7 102 120 16 136

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Empowering women KPI

Crown SportsWe aim to be a company that enables all employees to participate actively, but a lack of balance in terms of the number of male and female employees and managerial staff is regarded as an issue that needs addressing. Therefore, in order to promote diversity, we have implemented a variety of measures to create an environment in which women can play an active role. Since 2016, we have held Female Leadership Training Sessions three times each year as an initiative to support the career development and active participation of female employees. Moreover, we hold Childcare Leave Management Seminars for managerial staff at workplaces with staff who are returning to work after childcare leave or who have shortened work hours.

We achieved our fiscal 2019 target of 17 female employees in managerial positions, and we are making steady progress in the empowerment of women at the Daifuku Group. As the overall number of both new graduates and mid-career employees is rising, we fell short of our target for the ratio of female employees among all recruits. Therefore, we will continue to strengthen our recruitment system, including adopting an approach that centers on new graduates.

Number of female employees
  FY2017 FY2018 FY2019
Target Results
Number of female employees in managerial positions 11 15 17 17
Ratio of female recruitment 8% 11% 19% 10%
  • *The number of female employees in managerial positions is calculated based on the people who are the equivalent to section manager or higher.

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Employment of persons with disabilities (as of June 1)KPI

As of June 1, 2019, the rate of employment of persons with disabilities at Daifuku was 2.17%, which was short of the legally-stipulated employment rate. In August 2019, we set up a new work environment for employees with disabilities at the Work Happiness Farm in Kasugai City, Aichi Prefecture. We will continue with regular recruitment activities while collaborating with the Public Employment Security Office, Employment Security Association, schools, and other organizations. We will also focus our efforts on the employment of persons with disabilities, while taking into account the situation at each business site.

Employment of the persons with disabilities
  FY2017 FY2018 FY2019
Target Results
Employment rate 1.86% 1.80% 2.20% 2.17%

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  • Harvesting work at the farm

    Crown SportsHarvesting work at the farm

  • Harvested vegetables are served at the cafeteria

    Harvested vegetables are served at the cafeteria

Post retirement re-employment rate of retirees

In April 2003, we instituted a re-employment system for which the age of 62 was defined as the upper limit. This system is intended to enable employees to exhibit their abundant knowledge and experience to the full after they have reached the age of 60. In 2005, the age limit was raised to 65. In April 2013, this system was reviewed for compliance with amendments to the Act on Stabilization of Employment of Elderly Persons. As a result, under our re-employment system, we succeeded in continuing the employment of at least 80% of the target individuals.

Re-Employment Rate of Retirees
  FY2017 FY2018 FY2019
Re-employment rate of retirees 83.9% 93.8% 83.9%

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Work Environment

Crown SportsWe promote initiatives to encourage a positive work-life balance, in order to improve the quality of both the work and personal lives of our employees while contributing to the sustainable growth of Daifuku as a whole.

Work-style reform

Crown SportsDaifuku’s Work-Style Reform Committee commenced in April, 2017. Aiming for employees’ work-life balance, the Committee’s approach targets reforms to (1) work processes and relevant systems , (2) time management to reduce overwork, and (3) workplace culture and employee awareness.

Collective agreement

We support our employees' rights of collective bargaining. Daifuku has a labor union that works on behalf of the rights of all non-management employees who work at our Japan locations.

Addressing workplace harassment

Crown SportsDaifuku has established the Personnel Consultation Office to handle in-house rules and personnel evaluations as well as consultations regarding sexual harassment and power harassment. With a focus on privacy, we strive to create an environment that encourages employees to discuss any problems they may face.

Work-life balance

We promote initiatives to encourage employee awareness of the need to maintain a positive work-life balance. This is intended to improve the quality of the work lives and personal lives of individual employees while contributing to the sustainable growth of Daifuku as a whole.
Under amendments to the Labor Standards Law and the Child Care and Family Care Leave Law as well as the enacting of the Women’s Active Participation Promotion Law, etc., we are taking steps to revise our personnel system and implement a system to accommodate more diverse work styles.

Improving systems according to various ways of working

Improving systems according to various ways of working
  System Content
Employee Refreshment Flex-time system We introduced a flex-time system to increase time consciousness through self-management, improve efficiency and productivity, and promote work-life balance.
Leaving work on time Daifuku designates every Wednesday as Health Day and encourages employees to leave work on time.
Daifuku promotes this through an internal communications and regularly checking offices.
Planned paid leave system We encourage employees to take three days of paid leave (five or more continuous days including the weekend) between June and September every year. We monitor paid leave at the company with the union and aim for 100% acquisition rate.
Long leave system Daifuku has introduced a long leave system so that each employee can take a maximum of 60 accumulated days of leave for volunteer activities, treatment of non-occupational injuries, childcare, family care, and nursing care.
Refreshment leave Daifuku grants employees 20 continuous days of leave, including Saturdays and Sundays, to employees that turn 50 years old so that they can temporarily leave their work, design their future life plan, and return refreshed to their work.
Childcare support Maternity leave (employee's childbirth) 6 weeks before childbirth (14 weeks for multiple pregnancy), 8 weeks after childbirth
Paternity leave (spouse gives birth) 2 days when the employee's spouse gives birth
Childcare leave system Up to the end of the month in which the child turns 1 year old.
(It is possible to extend the term up to 1 year and 6 months of age if daycare service is unavailable. The term can be extended up to 2 years of age if daycare service is still unavailable at the 1 year 6 months point.)
System supporting early return to work after childcare leave For employees who have returned to work early after taking childcare leave (not to exceed 11 months following childbirth) and are making use of a childcare service for a child under 1 year, we assist them with the associated costs.
Shortened workday system In cases where an employee is raising a child who has not yet reached the end of the third grade of elementary school, a shortened workday schedule can be applied for up to six years. (Otherwise, a flextime system with no set core time can be applied)
Sick childcare leave For a child in the third grade of elementary school or younger who is being treated for an illness, childcare leave can be taken for five days a year (for two or more children, 10 days a year). (earnings in full day or half day units are possible)
Job Return Entry System For employees who have retired for reasons of childcare, the company offers opportunities for re-employment under certain specific conditions.
Other We offer a system to support the cost of babysitting services, and a system offering information on entering a childcare facility or using outsourced welfare services.
Support for family care Family care leave system A maximum of 1 year is available to provide care for a family member
Shortened workday system For employees who are caring for a family member, a shortened workday program can be applied for up to three years. (Otherwise, a flextime system with no set core time can be used)
Family care leave 5 days per family member requiring care. 10 days if the employee has 2 or more family members requiring care. (earnings in full day or half day units are possible)
Job Return Entry System For employees who have retired for reasons related to family health care, the company offers opportunities for re-employment under certain specific conditions.

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Average paid leave utilization rate KPI

The expansion of "Work-Style Reform" activities throughout the company has improved the rate of taking paid holidays. We will continue to promote work-style reform in the future.

Average paid leave utilization rate
  FY2017 FY2018 FY2019
Target Results
Average paid leave utilization rate 55.9% 62.3% 65.0% 68.7%

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Surveys of employee awareness KPI

We conduct surveys of employee awareness to find the current state of employees and the Company, as well as clarify issues that need to be addressed. These surveys are anonymous questionnaires that deal with the experiences of employees (satisfaction, workload, and the potential of the Company) and their perspectives on the Company’s current state (work, working environment, their superiors, and the overall company). Based on these results, we give feedback to executives and employees, which then leads to initiatives for creating a workplace where they are able to work actively, and where the organization is invigorated.

Surveys of employee awareness
  FY2017 FY2018 FY2019
Target Results
Surveys of employee awareness
(Overall satisfaction rate /
Conducted in alternate years)
Non-target year 3.7 - Non-target year
  • *This survey is conducted through an Employee Satisfaction Survey provided by Recruit Management Solutions Co., Ltd.
  • *Number approximately indicates as follows, Low: Below 3.00, Average: More than 3.00 and below 3.50, High: More than 3.50 and below 4.00, Very high: More than 4.00
  • *Implemented every other year from 2017.

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Personnel

To facilitate effective human resource development, Daifuku formulated human resource policies and implemented systematic, focused training programs based on these policies across the Group. In addition to position-specific training for new hires, mid-career employees, and managers, we also conduct training for a selected number of highly experienced employees. Moreover, we not only encourage employees in Japan to take the TOEIC English proficiency exam, but we also provide systems, such as a Global Business Trainee Program, to foster global talent and a workforce capable of engaging in global business.

Daifuku HR Training System

Number of employees who have TOEIC scores of over 600 KPI

Crown SportsAlthough we did not meet our target, we achieved a 64% increase over the previous year due to various initiatives such as original English learning activities at each business operation, and more employees who have become certified in the Global Business Trainee Program. Considering the increasing globalization of the world, we will work on further improving the English proficiency of our employees.

Number of employees who have TOEIC scores over 600
  FY2017 FY2018 FY2019
Target Results
Number of employees who have TOEIC scores over 600 121 126 170 166

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Number of employees certified by the Global Business Trainee Program KPI

We have set up overseas business courses for employees who can be expected to do business abroad; these courses are primarily for supporting the ongoing study of foreign languages. Although we were unable to meet our target number of certified employees due to stricter conditions for in-house approval of the Global Business Trainee Program, we will continue to work on cultivating global personnel.

Number of employees approved by the Global Business Course
  FY2017 FY2018 FY2019
Target Results
Number of people certified 142 161 250 189

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Number of people enrolled in self-development e-learning programs KPI

Influences from changes in learning mediums brought about by internet environment, particularly in terms of language study courses, as well as the proliferation of smartphones, resulted in targets not being met. To halt the decline in the number of enrollees, we plan to conduct a review of courses and course support to achieve our enrollee number target.

Number of people enrolled in self-development e-learning programs
  FY2017 FY2018 FY2019
Target Results
Number of people enrolled in self-development e-learning programs 139 101 230 70

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Global Leadership Training

Global Leadership Training

In November 2019, we held the Global Leadership Training program aimed at improving the skills of executive-track staff from the Daifuku Group’s non-Japan subsidiaries. In this ninth cycle of the training program, we welcomed 15 participants from subsidiaries in America, Mexico, Canada, India, China, South Korea, Taiwan, Singapore, Indonesia, and Thailand. Feedback from the participants included, “I was able to reaffirm my identity and direction as a member of the Daifuku Group, and I’m eager to share what I’ve learnt with my colleagues back home,” and “Local subsidiaries play a key role in localization, and this training really reinforced that to me.”