Highlights and Lowlights in Fiscal 2017 (April 2016–March 2017)

In aiming to enhance its level of CSR management, DENSO believes in the importance of increasing management transparency by proactively disclosing negative information together with performance reports and making ongoing improvements after ascertaining new challenges. Since fiscal 2009, we have listed highlights and lowlights from an objective standpoint to increase visibility and have reported this information to all stakeholders.

2016

June
HighlightsFormulation of Eco Vision 2025
Promoting activities to realize sustainable regions and societies in 2050

We formulated DENSO Eco Vision 2025 as an action plan for realizing sustainable regions and societies in 2050 in an attempt to resolve environmental problems and energy issues, and to coexist with nature through all of our corporate activities.
Having established ENERGY 1/2, CLEAN x 2, and GREEN x 2 as three targets we must achieve in 2025, we are promoting Action 10, ten specific actions for realizing these three targets at the products, production, associates, and management levels.

HighlightsLaunching the DENSO Pro Bono Program for the Voluntary Provision of Skills
Supporting the launch of NPO business with problem-solving capabilities accumulated in the workplace

The DENSO Pro Bono Program social contribution activity commenced operation in July to help NPOs and other citizen activity groups strengthen their foundation and resolve regional issues by leveraging DENSO employee skills cultivated through daily work. This program was launched in collaboration with the Aichi Community Foundation (Headquarters: Nagoya, Aichi Prefecture; Representative Director: Masaki Kimura).

July
HighlightsReceived Institute of Electrical and Electronics Engineers (IEEE) Medal in Recognition of Contributions to Clean Diesel

DENSO received the IEEE Medal (Environmental and Safety Technologies)*1 from the IEEE, the world’s largest electrical and electronics international society.*2 This award was bestowed in recognition of the world’s first practical application of electronic multipoint fuel-injection systems (hereinafter, common rail systems), which substantially contribute to the adoption of clean diesel vehicles.*1 IEEE Medal (Environmental and Safety Technologies)
Each year researchers, engineers, and teams are selected and awarded by the IEEE for significant contributions to technological innovations and the development of businesses and industries. The IEEE Medal for Environmental and Safety Technologies is awarded for outstanding achievements in the environmental and safety fields.
*2 Institute of Electrical and Electronics Engineers, Inc. (IEEE)
The world’s largest electrical and electronics technical professional organization, headquartered in the United States. Conducts activities as an academic society mainly in the engineering field and as a standardization organization for industrial technologies.

October
HighlightsWinning Medals in the 54th National Skills Competition

At the 54th National Skills Competition held in Yamagata Prefecture (October 21–24), DENSO won gold medals (gold awards) in the precision device assembly event and the mechanical device assembly event. Thirty-six DENSO Group employees participated in nine events, winning two gold medals, seven silver medals, and five bronze medals.

December
HighlightsReceived Two Environment Minister Awards for Global Warming Prevention Activities in 2016

At the 2016 Environment Minister Global Warming Prevention Activities awards ceremony (technology development/product category) held by the Ministry of the Environment, DENSO and DENSO AIR COOL were awarded for the development of an indirect ambient air- conditioning hybrid cooler, while DENSO and CORONA CORPORATION were awarded for the development of the Corona Premium Eco Cute residential-use heat pump water heaters using natural refrigerant CO2.

2017

February
HighlightsIncluded in the 2017 Health & Productivity Stock Selection and Certified in the Superior Health & Productivity Companies (the White 500) Program

DENSO was included in the 2017 Health & Productivity Stock Selection, a joint initiative carried out by the Ministry of Economy, Trade and Industry (METI) and the Tokyo Stock Exchange (TSE). In addition, the Company was certified in the Superior Health & Productivity Companies (the White 500) Program, which is promoted by the TSE and the Nippon Kenko Kaigi (Japan Health Council).Note: “Health and productivity management” is a registered trademark of the NPO Kenko Keiei Kenkyukai.

January and March
LowlightsAnnouncements from the Korean and European Fair Trade Commissions Regarding Automotive Parts

The Korean Fair Trade Commission (KFTC) announced its decision to take corrective actions and impose surcharges with respect to past transactions involving automotive exhaust gas sensors pursuant to the Monopoly Regulation and Fair Trade Act (Korean Antitrust Law). As per the KFTC’s announcement, DENSO CORPORATION was named as the supplier involved in the violation of the Monopoly Regulation and Fair Trade Act. However, DENSO was exempted from all of the KFTC’s orders as described above, because it had completely eliminated the conduct that was suspected to be in violation before the commencement of the authority’s investigation and because it applied to the KFTC for the leniency program in regard to suspected illegal conduct related to sales of automotive exhaust gas sensors, which was granted by the KFTC.

In addition, the European Commission (the Commission) announced that it has imposed fines on certain automotive suppliers that infringed EU competition law in connection with past sales of automotive HVAC units, compressors, electric compressors, and radiators. As per the Commission’s announcement, DENSO CORPORATION was named as one of the suppliers that had infringed EU competition law. However, the Company received full immunity from fines for HVAC units, compressors, and radiators and a reduced fine of €322,000 (approximately ¥39 million) for electric compressors, because it had completely eliminated the conduct that was suspected to be in violation before the Commission’s investigation and because it applied to the Commission for the leniency program in regard to suspected illegal conduct related to sales of those four products, which was granted by the Commission. DENSO does not expect any significant impact on performance in the year ending March 31, 2018 as a result of this matter.

The DENSO Group positions compliance with competition laws as one of its most important management issues and will strive to prevent recurrence and regain trust through the ongoing execution of enhanced competition law compliance activities conducted to date.

March
HighlightsEmploying Botanical Resins in Proprietary Products

DENSO is engaged in the research and development of botanical resin materials using plant molecular structures to lessen environmental burdens, which has led to the use of bio-polycarbonate (PC) derived from starch and urethane resin derived from castor oil in some of our products.
Botanical resins do not use fossil fuels as raw materials and are non-depleting resources, thus they are attracting attention as a material that does not increase the total amount of CO2 in the atmosphere even if thermal recycling is performed. DENSO has been engaged in the development of botanical resins for many years, and in 2009, developed and commercialized a plant-derived plastic radiator tank in conjunction with DuPont, the applications for which continue to expand.