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Kyocera SLD Laser CSR Report 2023

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CORPORATE SOCIAL RESPONSIBILITY<br />

ANNUAL REPORT<br />

FY <strong>2023</strong><br />

APRIL 2022 - MARCH <strong>2023</strong><br />

KYOCERA <strong>SLD</strong> LASER, INC.<br />

CONFIDENTIAL AND PROPRIETARY


Table of Contents<br />

About KYOCERA <strong>SLD</strong> <strong>Laser</strong>................................................................................................1<br />

Introduction to KYOCERA <strong>SLD</strong> <strong>Laser</strong>’s Commitment Toward Sustainability .............2<br />

Workplace Equality, Diversity and Inclusion ..................................................................3<br />

Social Citizenship-COVID-19 .............................................................................................4<br />

Security Policies - Data and Privacy .................................................................................5<br />

Supply Chain Management and Export Compliance ....................................................6<br />

Ethics and Code of Conduct ..............................................................................................7<br />

Social Contribution Initiatives ..........................................................................................8<br />

Product Quality and Safety ...............................................................................................9<br />

Product Impact .................................................................................................................10<br />

Environmental ..................................................................................................................11<br />

Sustainability Priorities ....................................................................................................12<br />

<strong>CSR</strong> ANNUAL REPORT FY <strong>2023</strong><br />

KYOCERA <strong>SLD</strong> LASER, INC.<br />

CONFIDENTIAL AND PROPRIETARY


1 2 3 4 5 6 7 8 9 10 11 12 13 14<br />

About KYOCERA <strong>SLD</strong> <strong>Laser</strong><br />

KYOCERA <strong>SLD</strong> <strong>Laser</strong>, Inc. (K<strong>SLD</strong>) is a whollyowned<br />

subsidiary and group company of<br />

KYOCERA Corporation, commercializing a new<br />

generation of gallium nitride-based laser light<br />

sources for automotive, mobility, specialty<br />

lighting, and consumer applications. The<br />

company is ISO 9001 certified and automotive<br />

compliant to IATF 16949, and operates facilities<br />

in Santa Barbara and Fremont, CA. K<strong>SLD</strong>’s high<br />

luminance <strong>Laser</strong>Light sources are UL and IEC<br />

safety certified and are utilized in a myriad of<br />

applications including automotive & mobility,<br />

specialty & portable lighting, entertainment &<br />

outdoor, projection & AR/VR displays, biomedical<br />

instrumentation & therapeutics, and industrial<br />

imaging & material processing. The company<br />

was recently ranked in Fortune magazine’s “2021<br />

and 2022 Best Workplaces in Manufacturing &<br />

Production,” having promoted an employee<br />

centric corporate culture since its founding.<br />

K<strong>SLD</strong>’s GLOBAL PRESENCE<br />

• US-based Engineering with<br />

Sales Support Offices in Each<br />

Key Customer Location<br />

Approximately 187 EMPLOYEES<br />

Globally with Over 60 PhDs<br />

• Auto-certified Assembly Line<br />

with a World-Renowned<br />

Supply Chain and Contract<br />

Manufacturers<br />

<strong>CSR</strong> ANNUAL REPORT FY <strong>2023</strong><br />

KYOCERA <strong>SLD</strong> LASER, INC.<br />

CONFIDENTIAL AND PROPRIETARY


1 2 3 4 5 6 7 8 9 10 11 12 13 14<br />

K<strong>SLD</strong> LASER’s<br />

Commitment Toward<br />

Sustainability<br />

KYOCERA <strong>SLD</strong> <strong>Laser</strong> (K<strong>SLD</strong>) is committed to<br />

illuminating our world by Pioneering the Future<br />

of Light. Our annual <strong>CSR</strong> report describes our<br />

sustainability efforts for FY<strong>2023</strong> as shown in<br />

this report describing activities from FY <strong>2023</strong>.<br />

We promise to maintain our integrity and<br />

contributions to leading the development and<br />

commercialization of laser-light sources while<br />

focusing on creating a positive impact on the<br />

environment, our community, and the world,<br />

with our dedication to:<br />

• Workplace equality, expanding<br />

diversity and inclusion<br />

• Having robust security policies<br />

protecting data and privacy<br />

• Having high standards for suppliers and<br />

strict export compliance rules<br />

• Ensuring working conditions both locally<br />

and abroad are protecting human rights<br />

• Environmental health and safety and<br />

climate resilience<br />

• Maintaining a high level of product<br />

safety certifications<br />

• Contributing our <strong>Laser</strong>Light sources to<br />

search and rescue efforts<br />

• Supporting volunteerism within our<br />

community<br />

• Looking after the wellbeing of our<br />

stakeholders<br />

<strong>CSR</strong> ANNUAL REPORT FY <strong>2023</strong><br />

KYOCERA <strong>SLD</strong> LASER, INC.<br />

CONFIDENTIAL AND PROPRIETARY


1 2 3 4 5 6 7 8 9 10 11 12 13 14<br />

Workplace Equality,<br />

Diversity and Inclusion<br />

To support workplace equality,<br />

diversity and inclusion, K<strong>SLD</strong>:<br />

• Remains an equal opportunity employer<br />

• Introduced company training on managing<br />

bias, diversity and inclusion<br />

• Ensured job descriptions have gender neutral<br />

language to attract qualified candidates<br />

• Introduced mentorship program to ensure<br />

cross pollination and exposure, with<br />

opportunities for all employees<br />

• Revamped compensation program and<br />

closely analyzed to ensure equal pay for<br />

similarly situated positions Workplace<br />

Equality, Diversity and Inclusion<br />

• Scheduled periodic onboarding meetings<br />

with executives and senior management<br />

to learn about each department and potential<br />

involvement with that department<br />

• Company Diversity Initiative to learn about<br />

backgrounds of team. Connecting with University<br />

to network and target diverse candidates<br />

• Created Employee Value Propositioncommunicating<br />

unique benefits, culture,<br />

development that employees can expect by<br />

choosing K<strong>SLD</strong> as employer. Being inclusive and<br />

consistent with all our employees, demonstrates<br />

K<strong>SLD</strong> as an equal opportunity employer.<br />

<strong>CSR</strong> ANNUAL REPORT FY <strong>2023</strong><br />

KYOCERA <strong>SLD</strong> LASER, INC.<br />

CONFIDENTIAL AND PROPRIETARY


1 2 3 4 5 6 7 8 9 10 11 12 13 14<br />

Social Citizenship - COVID 19<br />

K<strong>SLD</strong> began response to the COVID-19 pandemic<br />

by forming a COVID Emergency Response Team<br />

in January 2020. K<strong>SLD</strong>’s two main priorities were<br />

health and safety of employees and maintaining<br />

business continuity during this difficult time.<br />

K<strong>SLD</strong> continues to have preventative measures<br />

mitigating risks to employees throughout 2022 and<br />

now <strong>2023</strong>, with focus on employee’s physical and<br />

psychological safety to promote a healthy engaged<br />

workforce and their families K<strong>SLD</strong> has worked<br />

closely with local health agencies and<br />

experts to develop practical and<br />

conservative protocols. K<strong>SLD</strong> has<br />

maintained a hybrid work schedule<br />

in addition to rapid response and<br />

communication. K<strong>SLD</strong> supports<br />

overall employee wellness and<br />

security, maintaining paying<br />

wages for employees affected by<br />

the pandemic prior to state and<br />

federally mandated programs were<br />

in place and after they ended. In addition, K<strong>SLD</strong> has<br />

conducted training and had employee and visitor<br />

questionnaires in place before coming on-site. K<strong>SLD</strong><br />

continues to monitor recent CDC/CDPH/Cal OSHA<br />

guidelines to keep our employees informed.<br />

Health and Safety<br />

Preventative Measures<br />

• COVID Self Certification Questionnaire for<br />

Employees, Contractors and Visitors when<br />

onsite<br />

• Mandatory temperature screening for<br />

anyone coming onsite<br />

• Provided personal protective equipment<br />

• Disinfection and Sanitation stations were<br />

available throughout the sites<br />

• Rapid Response protocols<br />

• Ongoing COVID team and continuous<br />

updates to reflect current standard<br />

<strong>CSR</strong> ANNUAL REPORT FY <strong>2023</strong><br />

KYOCERA <strong>SLD</strong> LASER, INC.<br />

CONFIDENTIAL AND PROPRIETARY


1 2 3 4 5 6 7 8 9 10 11 12 13 14<br />

Security Policies - Data and Privacy<br />

The security of the Company’s property is of<br />

vital importance. The Company’s property<br />

includes not only tangible property, but<br />

also intangible property such as algorithms,<br />

processes, analyses, patents, trade secrets and<br />

source code. All employees are responsible for<br />

ensuring that proper security is maintained at<br />

all times.<br />

Given the nature of the Company’s business,<br />

protecting proprietary, confidential and<br />

personal information is of vital concern to<br />

the Company. This information is one of the<br />

Company’s most important assets. It enhances<br />

the Company’s opportunities for future<br />

growth, and indirectly adds to the job security<br />

of all employees.<br />

• K<strong>SLD</strong> is enhancing privacy policies to better<br />

secure consumer information<br />

• All employees required to sign confidentiality<br />

and IP agreements<br />

• All employees are required to follow the<br />

Company’s NDA Process<br />

• All Employee Information of personal<br />

information and privacy and the<br />

responsibilities to protect the information,<br />

and to not use, disclose such information,<br />

including obligations under CFIUS NSA<br />

• K<strong>SLD</strong> has implemented an enhanced version<br />

of Information Security and Data privacy<br />

policies adapted from KCJ’s master version to<br />

further protect the data we store and use<br />

<strong>CSR</strong> ANNUAL REPORT FY <strong>2023</strong><br />

KYOCERA <strong>SLD</strong> LASER, INC.<br />

CONFIDENTIAL AND PROPRIETARY


1 2 3 4 5 6 7 8 9 10 11 12 13 14<br />

Security Policies - Data and Privacy<br />

• Virtualized the on-prem servers or migrate<br />

services to the cloud to reduce carbon<br />

footprints.<br />

• Traditionally, each IT service is built with its<br />

own dedicated hardware. The hardware is<br />

specified to be able to handle 90% of the<br />

workload. In reality, the servers are sitting<br />

idle most of the time. Virtualization allows<br />

multiple servers or services running on the<br />

same set of computer hardware at the same<br />

time which increase the efficiency of the<br />

hardware usage and reduce the total power<br />

consumption. K<strong>SLD</strong> is fully virtualized in its<br />

on-prem server environment.<br />

• Cloud based service providers deploy server<br />

farms in a large scale with redundancy, data<br />

protection, efficient power consumption in<br />

mind. Migrating services to the cloud based<br />

environment when possible, could benefit<br />

from those factors. K<strong>SLD</strong> is using Microsoft<br />

Office 365, Amazon, Oracle Cloud, Box,<br />

Salesforce and more cloud based services.<br />

• Implement IT systems with strong privacy<br />

and security policies to protect the company,<br />

employees, customers, consultants,<br />

contractors, vendors, and etc.<br />

• We want everyone who works at or with K<strong>SLD</strong><br />

to feel safe with their personal identity when<br />

conducting their business with K<strong>SLD</strong>. We<br />

have implemented a set of Privacy Policies<br />

and posted them on our website to ensure<br />

all personal identifiable information are fully<br />

protected and secured.<br />

<strong>CSR</strong> ANNUAL REPORT FY <strong>2023</strong><br />

KYOCERA <strong>SLD</strong> LASER, INC.<br />

CONFIDENTIAL AND PROPRIETARY


1 2 3 4 5 6 7 8 9 10 11 12 13 14<br />

Supply Chain Management<br />

and Export Compliance<br />

K<strong>SLD</strong> continually reviews existing supplier,<br />

and export policies and processes to support<br />

ethics and compliance and responsible<br />

management<br />

K<strong>SLD</strong> is committed to treating suppliers<br />

lawfully and in an ethical manner by:<br />

• Supplier and vendor verification<br />

process<br />

• Entering significant supplier<br />

agreements through a competitive bid<br />

process where possible<br />

• Protecting confidential information of<br />

a supplier<br />

• Maintaining compliance with export<br />

control<br />

• Formed steering committee to manage<br />

export control compliance<br />

<strong>CSR</strong> ANNUAL REPORT FY <strong>2023</strong><br />

KYOCERA <strong>SLD</strong> LASER, INC.<br />

CONFIDENTIAL AND PROPRIETARY


1 2 3 4 5 6 7 8 9 10 11 12 13 14<br />

Ethics and Code of Conduct<br />

K<strong>SLD</strong>’s Code of Business Conduct and Ethics helps<br />

to provide guidance for applying ethical business<br />

conduct to day-to-day activities. The written policies<br />

as well as employee training communicate legal<br />

requirements, standards of ethical business conduct,<br />

as well as mechanisms for raising concerns.<br />

• K<strong>SLD</strong> added a hotline and updated our mechanisms<br />

for easy reporting of concerns. Employees have<br />

been notified of the anonymous hotline and in<br />

addition can contact KYOCERA Corporate Audit and<br />

Supervisory Board.<br />

• All K<strong>SLD</strong> employees are required to complete<br />

the training and to review and acknowledge the<br />

applicable employee policy documents.<br />

• The training is required every 2 years and<br />

monitored and documented by K<strong>SLD</strong>s Training<br />

Matrix.<br />

Training conducted<br />

through Everfi Learning<br />

Management System<br />

trainings include:<br />

• Ethics & Code of Conduct<br />

• Suppliers and Human Trafficking<br />

• Conflicts of Interest<br />

• Foreign Corrupt Practices Act<br />

• Anti-Corruption & Bribery<br />

Policy trainings include:<br />

• Ethics and Code of Conduct Policy<br />

• Anti-Harassment<br />

• Employee Handbook<br />

<strong>CSR</strong> ANNUAL REPORT FY <strong>2023</strong><br />

KYOCERA <strong>SLD</strong> LASER, INC.<br />

CONFIDENTIAL AND PROPRIETARY


1 2 3 4 5 6 7 8 9 10 11 12 13 14<br />

Social Contribution Initiatives<br />

• Employees receive paid volunteer time off (16 hours)<br />

• Donations to local food banks were made during the holiday season<br />

• First Annual Corporate Volunteer Day was implemented<br />

• Met with Local Congress and City, County Leadership to discuss<br />

workforce development opportunities<br />

<strong>CSR</strong> ANNUAL REPORT FY <strong>2023</strong><br />

KYOCERA <strong>SLD</strong> LASER, INC.<br />

CONFIDENTIAL AND PROPRIETARY


1 2 3 4 5 6 7 8 9 10 11 12 13 14<br />

Social Contribution Initiatives<br />

Volunteer at local food banks: 17 employee volunteers packed<br />

up fresh produce and snack bags for over 500 families in the<br />

cities of Fremont, Newark, Union City and Santa Barbara County<br />

Tri-City Volunteer Food Bank (Fremont) Foodbank of Santa<br />

Barbara, Santa Barbara County (Goleta)<br />

Donated flashlights to Freemont Fire Station #11<br />

Annual donation to TOYS FOR TOTS<br />

External mentorship for community members<br />

• Clean room training program<br />

• K<strong>SLD</strong> Employee Diversity Initiative<br />

• Networking with local Universities to target diverse<br />

candidates for open opportunities<br />

<strong>CSR</strong> ANNUAL REPORT FY <strong>2023</strong><br />

KYOCERA <strong>SLD</strong> LASER, INC.<br />

CONFIDENTIAL AND PROPRIETARY


1 2 3 4 5 6 7 8 9 10 11 12 13 14<br />

Product Quality and Safety<br />

<strong>Kyocera</strong> <strong>SLD</strong> <strong>Laser</strong> is active by following the most common<br />

international quality standards for product quality & safety.<br />

We are able through very creative development and<br />

manufacturing techniques to design products with very low<br />

<strong>Laser</strong> safety Classes. <strong>Kyocera</strong> <strong>SLD</strong> <strong>Laser</strong> is striving for the<br />

safest device and systems using our laser diodes. The whole<br />

company considers the well-being of all internal and external<br />

stakeholders in each, and every decision. All teams collaborating<br />

on synergies of complementary technologies between different<br />

<strong>Kyocera</strong> groups to enhance the stakeholder value.<br />

<strong>CSR</strong> ANNUAL REPORT FY <strong>2023</strong><br />

KYOCERA <strong>SLD</strong> LASER, INC.<br />

CONFIDENTIAL AND PROPRIETARY


1 2 3 4 5 6 7 8 9 10 11 12 13 14<br />

Product Impact<br />

Safety<br />

Our <strong>Laser</strong>Light technology outshines the<br />

limits of conventional LED to deliver safe,<br />

high luminance white light from an incredibly<br />

small point source. Our products improve the<br />

visibility/safety for the one who wants to see<br />

and for the one who wants to be seen.<br />

<strong>CSR</strong> ANNUAL REPORT FY <strong>2023</strong><br />

KYOCERA <strong>SLD</strong> LASER, INC.<br />

CONFIDENTIAL AND PROPRIETARY


1 2 3 4 5 6 7 8 9 10 11 12 13 14<br />

Product Impact<br />

Public Safety<br />

Donation of <strong>Laser</strong>Light flashlights<br />

completed to Harbormasters at Port<br />

Hueneme. The Harbormaster reports<br />

everyday use to inspect and inventory<br />

all containers, ropes from ship to<br />

shore, perimeter and security. The<br />

harbormaster noted the flashlights are<br />

“brighter, whiter, and sharper.”<br />

BRIGHTER.<br />

WHITER.<br />

SHARPER.<br />

<strong>CSR</strong> ANNUAL REPORT FY <strong>2023</strong><br />

KYOCERA <strong>SLD</strong> LASER, INC.<br />

CONFIDENTIAL AND PROPRIETARY


1 2 3 4 5 6 7 8 9 10 11 12 13 14<br />

Environmental<br />

• Initiated ISO 14001 certification<br />

process with estimated<br />

certification date of June <strong>2023</strong><br />

• Added policies with emphasis on<br />

setting metrics for sustainability<br />

priorities. Including GHG<br />

emission reductions, and energy<br />

conservation<br />

Recycling Activities<br />

• Segregation efforts for plastic, metal,<br />

paper and compostable waste<br />

• Reduction of Industrial Waste by recycling<br />

E-waste/IP<br />

• Collection of Universal Waste like bulbs,<br />

batteries<br />

• Precious metal reclaim<br />

Hazardous Substances<br />

• List of banned/restricted chemicals<br />

in place<br />

• New Hazardous Substance Approval form<br />

in place for any chemical being brought<br />

on-site and goes through vetting process<br />

• Compliance with laws and regulations for<br />

different monitoring reports as required<br />

by State and Federal laws<br />

<strong>CSR</strong> ANNUAL REPORT FY <strong>2023</strong><br />

KYOCERA <strong>SLD</strong> LASER, INC.<br />

CONFIDENTIAL AND PROPRIETARY


1 2 3 4 5 6 7 8 9 10 11 12 13 14<br />

Environmental<br />

Product Energy Efficiency<br />

Preventing Environmental Pollution<br />

and Measures to Fight Climate<br />

Change and Carbon Footprint<br />

• Participate in The Bay Area Commuter<br />

Benefits Program, a partnership of the<br />

Metropolitan Transportation Commission<br />

and the Bay Area Air Quality Management<br />

District.<br />

• Added Commuter Benefits pre-tax benefits<br />

program to employees’ personal benefits<br />

package<br />

• EV charging stations for employee’s<br />

vehicles<br />

• Policy allowing telework<br />

• Supports biking to work by providing bicycle<br />

storage and on-site showers<br />

• Paper reduction measures utilizing electronic<br />

signatures<br />

• Recycling containers at every work-station<br />

• Composting service at Fremont office<br />

<strong>CSR</strong> ANNUAL REPORT FY <strong>2023</strong><br />

KYOCERA <strong>SLD</strong> LASER, INC.<br />

CONFIDENTIAL AND PROPRIETARY


1 2 3 4 5 6 7 8 9 10 11 12 13 14<br />

Sustainability Priorities<br />

Harmonious coexistence is the underlying foundation of all our<br />

business activities as we work to create a world of prosperity<br />

and peace.<br />

ENVIRONMENTAL<br />

• Water Conservation and Recycling<br />

• Preventing Environmental Pollution<br />

• Product Energy Efficiency<br />

SOCIAL CITIZENSHIP<br />

• Employee Health, Safety and Fitness<br />

• Social Contribution Initiatives<br />

• Employee Diversity and Engagement<br />

“To coexist harmoniously<br />

with our society, our global<br />

community and nature.<br />

- Kazuo Inamori<br />

GOVERNANCE<br />

• Corporate Oversight<br />

• Information Security<br />

• Protection of Intellectual Property<br />

<strong>CSR</strong> ANNUAL REPORT FY <strong>2023</strong><br />

KYOCERA <strong>SLD</strong> LASER, INC.<br />

CONFIDENTIAL AND PROPRIETARY


485 Pine Avenue<br />

Goleta, CA 93117<br />

805-696-6999<br />

KYOCERA-<strong>SLD</strong><strong>Laser</strong>.com

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