Slide 1: Enhancing Corporate Value through the Evolution of Work-Style Reforms
Sustainability Briefing Enhancing Corporate Value through the Evolution of Work-Style Reforms May 25, 2022 1
Slide 2: Today's Agenda
Todayʼs Agenda 1. What We Sought with the Original Programs 2. Start of Work-Style Reforms 3. Quantitative Achievements 4. Onto the Next Stage 5. Relationship between Work-Style Reforms and Sustainability 6. Evaluations from the Macro Perspective of the Country 2
Slide 3: 1. What We Sought with the Original Programs
1. What We Sought with the Original Programs
Slide 4: What We Sought with the Original Programs (1999–)
What We Sought with the Original Programs (1999–) Major revisions to HR programs 1999 (introduced job salary) Aiming to be an “Employee-Friendly Company” 1) Abandonment of numerical targets that diverged from reality Appointing of overseas national staff to senior managers, Accepting overseas nation
Slide 5: 2. Start of Work-Style Reforms
2. Start of Work-Style Reforms
Slide 6: Start of Work-Style Reforms (2010)
Start of Work-Style Reforms (2010) ITOCHUʼs Assumptions 1) A remarkably low number of employees compared with the general trading companies associated with the former zaibatsu industrial groups 2) The need to continually enhance our commitment to the front lines as many of our customers are enmeshed
Slide 7: Aims of Work-Style Reforms
Start of Work-Style Reforms (2010) Aims of Work-Style Reforms 1) Every employee is better positioned to realize their full potential than at any other general trading companies 2) We set a vision of creating a “Challenging but Rewarding Company” 3) We will achieve results and continue providing retu
Slide 8: Concepts Supporting Work-Style Reforms
Concepts Supporting Work-Style Reforms A B Enhancement of Employee Motivation Pursuit of Efficiency ・Reduction of excessive meetings and documents ・Performance-linked compensation, payment of special ・Correction of the issue of long working hours benefits ・Morning-Focused Working System, ・Upgrading
Slide 9: Main Initiatives since 2010
Work-Style Reforms: Creating a “Challenging but Rewarding Company” Main Initiatives since 2010 ・ Establishment of in-house childcare facility 2010 ・ Reduction of excessive meetings and documents 2013 ・ Introduction of “Morning-Focused Working System” ・ Formulation of “ITOCHU Health Charter”, 2016 sh
Slide 10: Overview of the Morning-Focused Working System (2013–)
Overview of the Morning-Focused Working System (2013–) Working between 8pm and 10pm is generally prohibited. If work remains, it should be done in the following morning. Provided incentives for working the following morning (5am–8am) Provided wage increases equivalent to late-night working and d
Slide 11: Health Management
Health Management Formulation of “ITOCHU Health Charter” Health indicators improved （June 2016） (FYE 2019 figures compared with FYE 2011) Percentage of obese Down employees (male) 2％ Number of mental Down health patients 30％ Cases of liver function Down problems* 5％ Down Blood lipid levels** 5％ Down
Slide 12: Support Measures for Balancing Cancer Care and Work (2017)
Support Measures for Balancing Cancer Care and Work (2017) An email to then-President Okafuji from an employee battling cancer (February 2017) The employee wrote, “For me, ITOCHU is the best company in Japan.” Attending his funeral, the President promised to make ITOCHU the best company in Japan
Slide 13: Overview of Support Measures for Balancing Cancer Care and Work
Overview of “Support Measures for Balancing Cancer Care and Work” Prevention Treatment ・Alliance with the National Cancer Center Research ・Alliance with the National Cancer Center Research Institute (immediate collaboration with medical Institute (early detection through special checkups, specialist
Slide 14: Reduction of Anxiety about the Future
(Specific Examples) Reduction of Anxiety about the Future Expansion of fund for the education Graduate School of children University Around 2 to 3 times in size High school Graduate School University High school Middle school Middle school Up to elementary Up to elementary school school Before expan
Slide 15: National Cancer Rates by Age
National Cancer Rates by Age 2.0% 男 60 y/o Male Male Female Female ⼥ 1.5% Cancer rates among those of working age (up to 60 years old) are higher in women. Around two times higher for women between 30 and 50 1.0% years old, and three times higher for women in their 30s. 0.5% 0.0% Source: The Cancer
Slide 16: COVID-19 Pandemic Countermeasures (Work Systems)
COVID-19 Pandemic Countermeasures (Work Systems) Right after the pandemic began, we took measures to prevent infections and flexibly controlled the percentage of workers in offices in line with the changing infection situation. While protecting employees from infection risk, we constructed a syste
Slide 17: COVID-19 Pandemic Countermeasures (Workplace Vaccinations)
COVID-19 Pandemic Countermeasures (Workplace Vaccinations) ITOCHU conducted workplace vaccinations at the fastest speed of Japanese companies. On the first day of vaccinations, the Chief Cabinet Secretary visited our office, observed the situation, and exchanged opinions. ＜Visit by the Chief Cabin
Slide 18: 3. Quantitative Achievements
3. Quantitative Achievements
Slide 19: Quantitative Achievements (Enhanced Labor Productivity)
Quantitative Achievements (Enhanced Labor Productivity) Growth rate Labor productivity: (times) 5.2 times 5.0 Labor productivity improved 4.0 FYE 2011 FYE 2017 Reduction of excessive Formulation of “ITOCHU meetings and documents Health Charter” 3.0 FYE 2014 Introduction of “Morning-Focused Working S
Slide 20: Quantitative Achievements (Returns to Shareholders)
Quantitative Achievements (Returns to Shareholders) Growth rate Dividends: (times) 6.1 times 6.0 Consolidated net profit: 5.1 times 5.0 4.0 Share price: 4.4 times 3.0 2.0 1.0 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 2021 2021 2022 (FYE)
Slide 21: 4. Onto the Next Stage
atin ‘TOC 4. Onto the Next Stage
Slide 22: Establishment of the Women's Advancement Committee
Onto the Next Stage Establishment of the Womenʼs Advancement Committee We intend to expand corporate value by driving womenʼs advancement in the workplace and fostering an internal culture where diverse human resources can thrive. Established the committee as one of the advisory committees to th
Slide 23: Engagement Survey (Conducted in 2021)
Engagement Survey (Conducted in 2021) Affirmative responses to “Employee Engagement” and “Environment that Empowers Employees” remained in the top for global and Japanese companies. Although the level was still high, “Employee Engagement” fell 5% from 2018 (76%). Benchmark Comparison （%） Increas
Slide 24: 2nd Stage of Work-Style Reforms
2nd Stage of Work-Style Reforms We introduced a “Morning-Focused Flextime System” to make it easier to leave earlier and thereby provide an even broader range of work-style options to female career-track employees, as well as those with working spouses. We allowed all employees to work from home.
Slide 25: 5. Relationship between Work-Style Reforms and Sustainability
5. Relationship between Work-Style Reforms and Sustainability
Slide 26: Work-Style Reforms and Sustainability: Company Ranking among Job-seekers
Work-Style Reforms and Sustainability 1) Company Ranking among Job-seekers From 2023 graduates, ITOCHU received first-place ranking among general trading companies in the survey of all seven institutions Also ranked No.1 in four of seven major rankings among all companies; ITOCHU thus boasts lea
Slide 27: Relationship between Work-Style Reforms and Sustainability: Trend in Birthrates
Relationship between Work-Style Reforms and Sustainability 2) Trend in Birthrates Promotion of Work-Style Reforms and Health Management In-house Morning- ITOCHU Support for Work-from- Health balancing cancer childcare facility Focused Charter care and work home program Working 1.97 System 1.87 1.54
Slide 28: Work-Style Reforms and Sustainability
Work-Style Reforms and Sustainability 3) SDGs/ESG External Evaluations (Direct Evaluations) Our ranking among general trading companies in terms of external ratings in the recent one year DJSI・S&P Global Sustainability Awards 1st Gomez ESG Site Rankings 1st（all companies） Daiwa IR 2021 Internet IR A
Slide 29: 6. Evaluations from the Macro Perspective of the Country
6. Evaluations from the Macro Perspective of the Country Atsuko Muraki, Outside Director
Slide 30: Response to Falling Birthrate and Aging Population
Response to “Falling Birthrate and Aging Population” What is the Comprehensive Reform of Social Security and Tax 〜Aim to both secure stable sources of social security funds and restore Japanʼs fiscal health〜 Amid radical changes in the socio-economic environment, the Comprehensive Reform of Social S
Slide 31: Social Issues that Must Be Addressed Going Forward
Social Issues that Must Be Addressed Going Forward Heisei period: Reiwa period: “Reforms with pain” “Forward-looking reforms” • Economic activities: • Economic activities: Thorough streamlining and Enhancement of productivity via a reduction in the labor distribution shift of capital and labor to fi
Slide 32: Women's Employment Ratio by Country and the Total Fertility Rate
Womenʼs Employment Ratio by Country and the Total Fertility Rate In some developed countries, womenʼs employment ratio depicts a curve akin to the letter “M”; this tendency is more pronounced in Japan than any other countries. The total fertility rate tends to be higher in countries in which wom
Slide 33: Reasons Women Resign at Pregnancy or Childbirth (General Survey)
Reasons Women Resign at Pregnancy or Childbirth (General Survey) Looking at reasons why women resign at pregnancy or childbirth, 39% of respondents answered the resignation was spontaneous. However, around 26% of respondents resigned due to difficulties in striking a balance between work and child
Slide 34: Women's Workforce Retention and Husbands' Engagement in Homemaking & Childrearing
Womenʼs Workforce Retention and Husbands engagement in Homemaking & Childrearing In Japanese households with children younger than six years old, husbands are found to be engaged in homemaking and/or childrearing for just one hour per day on average, demonstrating a low level in comparison with th
Slide 35: Ratio of ITOCHU Employees with Working Spouses
Ratio of ITOCHU Employees with Working Spouses Compared with two decades ago, the proportion of married male employees with working wives grew significantly larger. The ratio of married male employees with working wives accounts for 90% of those in their 20s and 60% of those in their 30s, with c
Slide 36: Comments by ITOCHU Employees Reinstated from Childcare Leave
Comments by ITOCHU Employees Reinstated from Childcare Leave Reasons for continuing to work at ITOCHU include the availability of work-style options, access to the in-house childcare facility, subsidies for babysitting, the understanding of colleagues, and the presence of women who have gone throu
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