Basic ideas

Basic ideas for occupational health and safety

The Group considers occupational health and safety to be top priority and one of the important management foundations, and strives to provide a safe working environment.

Policy

As its global safety policy, the Group has adopted “Safety is a critical core value shared by the entire Tokai Carbon Group. We aim to provide a safe working environment for all people working in Tokai Carbon Group by eliminating hazards and reducing risks.”

Structures

Health and safety management structure

The Group's safety policy and initiatives are subject to approval by the Executives Meeting and the Board of Directors. The Board of Directors supervises occupational health and safety risks, and the director in charge of risk reports to the Board of Directors on important matters such as occupational accidents as necessary. In addition, we hold a Global Environment and Safety Meeting on the environmental initiatives of each business at worksites in Japan and overseas to summarize the results of activities and discuss environmental targets for the next fiscal year.
In Tokai Carbon Japan, we hold Central Work Committee meetings attended by the director in charge of health and safety, department managers in charge, and the labor union to discuss health and safety issues and to work on continuous improvement of health and safety. Further, we hold Health and Safety Committee meetings at each site with the participation of managers and supervisors at each site and the labor union to report and discuss matters related to occupational health and safety. Cooperating companies to which the Company outsources its work also participate in the Health and Safety Committee meetings as observers.
On the global level, we hold Global Safety Meetings in each area (North America, Europe and Asia) where safety and health supervisors and staff from the Environment & Safety Department and Group companies in each area are assembled. At these meetings, we share information on safety and health and conduct mutual safety inspections to promote the improvement of safety management systems.

Harassment consultation desk and Internal reporting system

The Company has an internal system for reporting improprieties that accepts reports and consultations from employees, including harassment and bullying. This system has both internal (Legal Affairs Department and Audit & Supervisory Board Members) and external (an advising attorney) contact points. It allows employees to make reports and receive　consultation by various means including telephone, fax, email, and postal mail. The Company’s Guidelines on Handing Internal Reports clearly states that, apart from cases when the system is deliberately misused, informants will not be dismissed or subjected to unfair treatment under this system.
→Compliance　Internal reporting system

Objectives

Objectives for health and safety

The Group is working on occupational accidents prevention activities with the aim of eliminating the occurrence of serious occupational accidents. In 2026, the Group's safety target is a frequency rate of 0.80 or less.
For 2026, Tokai Carbon is working on three targets in its priority plan: enhancing risk extraction activities (safety patrol, close call incidents, and pre-work hazard prediction, risk assessment), ensuring the safety of contracted workers and outsourced construction companies, and improving workplace working environment（increase employee engagement）. In preparing the priority plan, priority has been given to recent trends in occupational accidents.

Initiatives

Improving occupational health and safety

In order to eliminate hazards and reduce risks, the Group promotes the implementation of risk assessments and countermeasures. In the risk assessment, we evaluate the risks leading to injuries and illnesses, and those affecting health, clarify the priorities for the identified risks, and improve the work environment. When installing new production equipment or refurbishing existing facilities, we conduct risk assessments from the equipment design stage. If high risks are identified, we implement measures to reduce them in advance. In response to work-related injuries and illnesses and serious incidents, we first grasp the situation through on-site verification, thoroughly investigate the root cause through the five whys analysis, formulate measures to prevent recurrence, and verify their effectiveness. Moreover, in order to prevent similar accidents, we share information on the incident details and countermeasures with all business sites.
In addition to these initiatives, we conduct safety education to enhance our safety awareness. In 2025, 82 employees, including newly hired employees, participated in courses and training provided by an external organization in order to improve their sensitivity to danger. We also conducted VR and external risk experience training, with 50 people participating in 2025.
Furthermore, we are conducting safety training with the aim of thoroughly enforcing safety rules within our workplaces and measures to prevent the recurrence of past occupational accidents, and in 2025, the training program was provided to 53 employees who have been with the Company for less than five years.

Emergency response training

Tokai Carbon has formulated an Emergency Response Manual to prepare for potential plant emergencies and conduct disaster prevention drills at regular intervals. These drills simulate major earthquakes, tsunami, fires and other plant-specific emergencies, covering activities such as firefighting, rescue operations, evacuation drills, oil spill response measures.
The drills include swift reporting to government offices and to various related regional parties, and also includes information-sharing in line with the internal reporting structure to allow swift and appropriate response in time of emergency.

Firefighting and spraying drill (Chita Plant)

Oil spill prevention measures by deploying oil fences(Ishinomaki Plant)

Group company joint evacuation drill

Labor relations

The Tokai Carbon Group respects the rights of employees, including the freedom of association and the right to collective bargaining. Tokai Carbon has signed a union shop agreement with the Tokai Carbon Labor Union. Union membership includes 83.1% of Tokai Carbon employees (as of the end of December 2025.)
Labor and management discuss matters concerning labor relations and business activities in meetings of the Labor Committee, Work Committee, Expert Committee on Human Resources Systems, and Working group. Working from a foundation of trust and cooperation labor and management fulfill their respective responsibilities and strive to implement policies that promote positive interaction.
The company holds regular dialogues with worker representatives, and when the company makes organizational changes or changes to working conditions, it makes decisions after consulting with the labor union in advance.

Working hours and wages

With regard to working hours, we comply with all labor-related laws. We also aim to restrict overtime and reduce it in consideration of the work-life balance of our employees and the maintenance and improvement of their health. We comply with all labor related laws as they pertain to wages, too. After considering factors such as a living wage, we set a basic policy of paying employees the minimum wage or higher.

Performance

Occupational health and safety data

Occupational accidents

In 2025, the Group's frequency rate was 0.70 (fatal accidents: 0; lost time injuries: 6).
All lost time accidents were physical injuries, and thorough recurrence prevention measures have been implemented from both hard (facilities, equipment, and tools) and soft (human resources, technology, awareness, and information) aspects in accordance with the cause of the accident. The Tokai Carbon Group has not suffered any fatal accidents between 2020 and 2025 regarding its employees and workers under contract.

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• *Frequency rate = (number of deaths and injuries/total number of working hours) ×1,000,000
• *Average data for the manufacturing industry is available from Ministry of Health, Labour and Welfare's 2024 Industrial Accident Trend Survey.

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• *Severity rate = (Total number of work days lost/Total number of work hours) × 1,000