Risk Management

Business Continuity Plan

The Shindengen Group considers supply chain management and risk management during large-scale disasters one of its social responsibilities related to business activities. We formulate business continuity plans based on ISO 22301 (business continuity management) and implement systematic management. The Business Continuity Management (BCM) Committee was established in FY2012 and chaired by the President. This Committee has strengthened disaster response and business continuity measures under the “Disaster Prevention and Business Continuity Policy” and regularly distribute and collate risk management information from across the Group in Japan and overseas. Annually, training and top management reviews are held to continuously improve the suitability, appropriateness, and effectiveness of the BCM system. In FY 2021, we held virtual situation-based drills remotely for each division. We improved and strengthened our BCPs while raising awareness by holding drills for each division based on highly realistic assumptions and questions rooted in the business continuity.

Emergency Response and Business Continuity Plan-Statement of Principles

Responding to COVID-19

The highly infectious omicron variant of COVID-19 infected many people at Shindengen Electric Manufacturing Co., Ltd. as well.
Although the risk level of COVID-19 as an infectious disease has been lowered, the company continues to treat it as a business continuity risk with the BCM secretariat as a centralized contact point.
We endeavor to prevent the expanded spread of infection through means such as thoroughly disseminating the infection prevention measures we have been taking throughout the company, continuing to operate working from home by promoting telework, and using diagnostic kits. In addition, at affiliate companies, we take action on business continuity in response to the infection situation,and, in FY 2021, we maintained a business system that ensured that the infection rate would not get to a level where it has a serious impact on business continuity.

Information Security

Under its officers in charge of data systems, Shindengen has created a data security promotion system with the data system division as its controlling division and works hard to prevent data leaks. In addition, to ensure the security of data assets, we have formulated various internal rules and work to prevent data leaks among all employees. Moreover, we hold a data security class once a year for all employees and standard phishing email drills to enhance our personnel’s countermeasures and address risks.
On the other hand, in terms of information systems, we are strengthening various measures to deal with external security threats.
Additionally, the surveillance of employee internet activities and maintenance of computer operational logs through integrated monitoring software are designed to manage the risk of an information leak from an internal source.

Export control (security trade control) and Import control

To maintain international peace and security, the Shindengen Group complies with export laws, including the “Foreign Trade Control Law” and has established a strict export control system. The Shindengen Group strives to prevent the spread and accumulation of excessive weaponry, with particular regard to weapons of mass destruction or social harm.
At Shindengen, the “Security Trade Control Committee” is tasked with ensuring export transactions meet the high ethical standards imposed by “Security Trade Control Regulations.” Additionally, even in domestic sales cases, end-users are investigated to determine whether or not the product is ultimate to be exported and if it has the potential to be used to cause social harm and/or endanger international peace. Moreover, through our in-house rules, we limit the execution of import and export operations to those who have been certified as compliant with our internal qualifications and thereby manage risks and streamline import and export operations.
Those certified as compliant with our internal qualifications are obligated to acquire the necessary specialized skills.

Protecting and Utilizing Intellectual Property

Basic Policy Related to Intellectual Property

The Shindengen Group appropriately manages, acquires, protects, and utilizes intellectual property, which is an important management resource, and fully respects the intellectual property of third parties in the course of its business operations. Based on this basic policy, we uphold the following three principles and conduct awareness-raising activities.
•We do not infringe on other companies’ intellectual property rights.
•If for some special reason we need the patents of other companies, we will obtain an agreement for licensing before creating products. This must not be done after the fact.
•If we receive a warning about an ill-conceived infringement (such as a patent not seen during the investigation or a patent that was searched for but was not discovered), we strive to remediate the situation within six months.

Intellectual Property Strategy

The intellectual property division promotes initiatives in a three-pronged manner that organically integrates business strategies, R&D strategies, and intellectual property strategies. As for our intellectual property strategy, aiming for intellectual property that contributes to management, we work to create intellectual property that enhances the competitive advantage of our businesses. In particular, regarding patent rights and design rights (which are accomplishments of our R&D) as well as trademarks (which are the foundation of our brand power) and copyrights (which are the accomplishments of our creations), we appropriately manage them based on a set flow for acquiring, maintaining, and discarding them under our Intellectual Property Mix Strategy. In addition, through the IP landscape, we comprehensively manage and visualize the construction of our strategic intellectual property portfolio.

Open Patent Initiatives

Aiming to revitalize local industry through global action on intellectual capital, collaboration between industry, academia, and government, and open innovation, Shindengen Electric Manufacturing Co., Ltd. is taking steps to effectively utilize patents and technologies related to electric converter technologies and circuit technologies owned by the company, by opening them to the World Intellectual Property Organization (WIPO), which is the specialist agency of the United Nations, and local public organizations. We took the stage at an online event organized by the Saitama Industrial Promotion Public Corporation from March 7th to 16th 2023 and introduced our open patents such as the “plant factory system using reefer containers” and “lightning surge simulator and control method.”

Counterfeit Products – Zero-Tolerance

To eliminate counterfeit products that infringe on the Shindengen Group’s patents, utility models, designs, trademarks, and other property, the Group is strengthening its monitoring and action and maintains proactive countermeasures, especially in Asian regions. We will continue to take a serious attitude toward counterfeit products going forward.

Incentive Programs for Inventors and Creators

Guaranteeing the rights of employees who create inventions, the Shindengen Group formulated the Invention Handling Rules to encourage inventions and research and to clarify the obligations of employees who create inventions. Under these rules, we established a compensation program that pays monetary incentives for the creation of inventions, ideas, and designs. As for types of compensation, application compensation is paid when submitting an application, registration compensation is paid when registering, and licensing compensation is paid when transfer and permission are granted. In addition, regarding employees who have a strong track record, we grant awards based on internal award rules (merit award rules) regardless of whether a registration is made. Under this compensation program, we target compensation for inventions and similar know-how. Internal patent attorneys and property division employees regularly tour major operating divisions, share technical know-how and thoroughly manage trade secrets. In this way, we support stably creating rights for intellectual property, such as encouraging inventions and applying for utility model rights.

Inter-Group Intellectual Property Collaboration

In consideration of the expanding value of global intangible assets, the Shindengen Group positions developers, engineers, and production line employees, who are the intellectual capital and human capital creating inventions and designs, as important management resources to build our business superiority. Going forward, we will continue promoting intellectual property collaborative activities across the Group to support business operations that maintain our competitive advantages.

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