DOWA CSR REPORT 2014

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CSR REPORT 2014

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DOWA's Business and Social Issues

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Recognizing Business Risks

The DOWA group addresses risk management to properly control risks that may hinder realization of our business philosophy and achieving our business plans: To carry out our social responsibilities and further increase our sustainable corporate value. The board of directors is mainly responsible for handling business risks and the CSR Department is responsible for the CSR risks in cooperation with other departments.

Business risks

External risks that may affect business results, stock price and financial conditions are as described to the right. For details, visit our website for the Annual Report of the DOWA group.

http://www.dowa.co.jp/en/ir/library_results.html

CSR risks

The DOWA group started identifying and reevaluating risks related to our concerns for the Environment, Society and Governance to assure further sustainable business activities. The CSR department conducted the risk survey for each business entity in the group to find out existing risks, their measures and the possibility of increase of mid- and long-term risks. We identified major risks for each business entity and operating company. Major risks identified in 2013 are as follows:

Risk of overseas business establishment

In addition to the above mentioned risks, crisis management and prevention of fraud in terms of governance are considered to be major risks in our businesses outside of Japan.

We will identify every major risks of each company within the group, and plan and implement their measures, based on the results of the survey. We will strive to enhance and improve risk measures of each company by monitoring the progress of the measures and conducting improvement activities continuously.

<Major Risks>

Major Risks

Initiative to Resolve Social Issues
through Business Activities

Initiative for
"Sustainable Utilization of Limited Metal Resources"

The purpose of social responsibility is defined as "to contribute to sustainable development" in the international standard of CSR, ISO 26000 in 2010. Society faces diversified problems, including environment, water, food, poverty and the like. "Effective utilization of resources" is the most relevant issue to DOWA, as utilization of metal resources is the core of our business. It is also an important social issue.

Multidimensional Approach to Resource-Recycling Society

Mineral ores are natural resource and will be eventually exhausted if people continue to use them. Resource-recycling is an important solution; however it requires technologies and infrastructure to effectively recover metals, and to properly treat the hazardous substances and nonusable substances produced in the recovery process. This includes technical and economic issues which need to be solved such as a proper establishment of a social system which enables effective collection of recycle materials, and cost and efforts put into treatment of diverse materials. The DOWA group conducts a wide range of recycling business in and outside Japan, including precious metals, home appliances, cars and used small home appliances. In addition to recycling, DOWA strives to solve issues related to effective utilization of resources, considering various aspects, by making best use of its own waste from its intermediate processing facilities, laboratories and transportation business units.

Examples of DOWA's Approach to Social Issues

Examples of DOWA's Approach to Social Issues

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