Human Capital
Message from the Chief Human Resources Officer
An Era in which the Focus is on the Success of Organizational Units
I joined the Teijin Group in 2023. Long before that, I had observed the Group as an outsider, and my impression at that time in the 1990s was that Teijin was quick to adopt the nomination committee function, which included discussions around CEO succession planning by an advisory board primarily composed of external experts, and that it was implementing pioneering initiatives in the area of human capital management. Indeed, a high-quality human resources platform, including training systems and D&I initiatives, has been established. In addition, as the Company expanded its presence overseas, human resource measures designed to keep abreast of globalization were also enhanced. One of the factors that underpinned those efforts was that the previous CHRO hailed from Germany. On the other hand, looking back at the Company's history of diversification and structural reforms, there had been periods characterized by a focus on the autonomy of businesses, leading to increasingly stronger forces pushing outward, as well as periods where an emphasis on growth businesses served to strengthen the forces pulling inward. Throughout this, the role of human resources was focused not only on addressing labor issues but also on enhancing the probability of success at the organizational unit level. Furthermore, in some respects, the transition away from the traditional membership-based employment system and mindset has not advanced enough, thereby constraining the execution of our management strategy. In recognizing this, in the previous medium-term management plan, we organized the challenges related to human capital and pursued initiatives to directly link human resource measures to our management strategy.
The Essence of Human Capital Management and Newly Emerging Issues
Human capital management is a management approach that views human resources as a key management asset and seeks to maximize their value in order to enhance corporate value. I believe that by executing our strategy, the Company provides employees with a sense of fulfillment, fair evaluation and compensation, and career opportunities, while employees maximize their abilities under autonomous career development and contribute to business growth. The creation of this positive cycle helps us build an organization that is resilient to changes in the operating environment and can generate value in a sustained manner. In the previous medium-term management plan, we worked on building a foundation to facilitate the transformation of our business portfolio, especially focusing on improving personnel mobility on a global scale. In Japan, we concentrated on introducing a job-based human resources system and generating awareness of career autonomy. What I have recognized again over the past two years is that while establishing systems and frameworks is an important first step, continuous efforts are necessary to translate that into actual behavioral transformation. I personally value opportunities to engage in dialogue with all employees and have listened to the opinions of employees in various positions. Through such dialogue, I have gained a lot of insight. For example, with regard to applications for job postings, I received some honest feedback about how some employees felt awkward about leaving their organization and the sadness they felt when other members departed. I recognize that this is partly attributable to the fact that there was not enough awareness about utilizing personnel across organizations or pursuing cross-cutting careers because of the Company focusing on maximizing results at the business and organizational unit level. On the other hand, going through my conversations with employees and comments made in the Company's engagement survey, I also feel that those of the younger generation, who are accustomed to personnel mobility and more diverse career choices, are increasingly shedding the sense of being tied to their organization. Employee values are changing, and the number of workers who actively seek out their own growth opportunities and want to accumulate a broad range of experiences is steadily increasing. I have realized again that in order to achieve mobility among employees beyond organizational boundaries in the future, it is imperative that we ensure a culture that positively embraces challenges and provides psychological safety. At the same time, as a result of engaging in a wide range of businesses, the accumulation of personnel with various expertise and experiences is one of the Company's key strengths. Going forward, this strength will become a key competitive advantage as we create value under a Customer-Driven business. Taking these circumstances into account, we have taken stock of the risks and opportunities that surround the Company's human capital. In terms of risks, the siloing of organizations, misalignment between strategies and personnel placement, and a culture that hesitates to embrace challenges may hinder the professional capabilities of our employees and potentially diminish our capacity to create value. On the other hand, by combining our diverse and highly specialized workforce with initiatives geared towards career autonomy and optimal placement, our human capital can be transformed into a driver of customer value creation and a source of growth in corporate value over the medium- to long-term. This, in other words, is an opportunity.
Evolving from Foundation Building to Strategic Function
In the new medium-term management plan, taking these risks and opportunities into account, we will evolve the human resources function from one focused primarily on building organizational foundations into a strategic function that supports a Customer-Driven business and directly enables business transformation. A Customer-Driven approach is not a new concept for the Teijin Group; we have long pursued value creation based on customer needs in the Apparel & Industries and Healthcare & Life Solutions. However, this time, the Customer-Driven business goes beyond the boundaries of businesses and organizations, combining external insights and products as necessary to realize an integrated process from value creation through to monetization, centered on customer issues. To realize this, we need capabilities that can address customer issues across business boundaries rather than within traditional business structures. Achieving this will require us to fundamentally rethink how we deploy and develop talent. Going forward, we will focus on Placing the best-fit talent in each role globally to enhance the movement of personnel within the Group and globally, optimally allocating employees to positions and harnessing the strengths of diverse talent, thereby accelerating the transition to a Customer-Driven business. To that end, we will advance the development of a global human resources information system and the global harmonization of our human resource systems. In Japan, we will further promote optimal talent deployment based on our job-based Human Resources System and employees'career autonomy, thereby encouraging behavioral transformation through a framework in which achievements linked to customer value are appropriately reflected in performance evaluation and compensation.
Creating a Virtuous Cycle of Employee Happiness and Growth in Corporate Value
Empowering ourselves to address challenges is one of the values of the Teijin Group. We will respect the challenges of others, believe in our own potential, take a step forward, and endeavor to achieve a Customer-Driven business. A human resource strategy that spurs such behavioral transformation has meaning only when it is embodied in the actions of everyone and established as a corporate culture. I know that as we make progress on structural reforms and business portfolio optimization, the anxieties and burdens on employees will increase. In such circumstances, to encourage challenges, it is essential that we create an environment based on understanding and trust. We will be transparent about sharing the reasons for decisions and establish an environment where employees can actively pursue a career. In addition, we will fairly evaluate those who take on challenges and foster a culture where individuals do not avoid challenges out of fear of failure but rather learn from mistakes and link those experiences to their next phase of growth. I believe these continuous efforts will become the foundation that supports sustained corporate growth. One important role of the CHRO is to design the strategy envisioned by management in a way that is implementable from the perspectives of people and the organization. Our organization has been designed to realize strategies and create customer value. Human resources are a key management asset, optimally placed across the Group worldwide to achieve these strategies. Based on this thinking, since 2023 our vision for human resources has been to contribute to strategy execution by establishing the right roles and securing the right talent (Placing the best-fit talent in each role globally) and to be a company where talent can thrive and find fulfillment through their work. Placing the best-fit talent in each role globally refers to the situation in which we design the organization necessary to realize strategies and create customer value, while optimally assigning employees globally to realize that. By creating an environment where employees can thrive beyond the boundaries of organizations and regions, we will enhance the mobility of talent within the Group and support the achievement of our management strategy. Furthermore, a company where talent can thrive and find happiness through work is one in which diverse employees can realize their full potential, experience growth toward their career aspirations, and work with a strong sense of engagement. It is also a state in which employee well-being is realized. The Company and its employees should be in a relationship of mutual choice, where both choose and are chosen by each other. To that end, it is important for the Teijin Group itself to continue to be an employer of choice for the future. In such a relationship, I believe that creating an environment where employees can realize their full potential and experience personal growth will enhance job satisfaction and engagement, strengthening organizational vitality and corporate value while ultimately enabling each individual to find happiness through work. The human resources function bears that responsibility, and I am personally committed to taking on and driving this transformation forward.
Overview of Human Capital Management and Human Resource Strategy
Approach to Human Capital Management
The Teijin Group positions human resources as the "ultimate management resource" and places the maximization of their value at the core of its strategy. By seamlessly integrating the wide range of technologies and expertise cultivated through the diversification of management, we weave together comprehensive solutions and contribute to a Customer-Driven business. Furthermore, we foster an environment where every employee can grow together with the Company through a relationship of mutually choosing and being chosen, and we seek to connect the deepening and evolution of our human resources and organization to the creation of customer value and social value.
Overview of Human Resource Strategy
We have established the following two pillars as a long-term vision to holistically promote a human resource strategy that supports the realization of both our Purpose (vertical axis) and our medium-term management plan (horizontal axis).
- Contribute to strategy execution by establishing the right roles and securing the best-fit talent
- Aim to be a company where employees can thrive and find fulfillment through their work
Based on these pillars, we will organize and evaluate the risks and opportunities of our human capital from the following three "value-creation" perspectives, identify the issues we need to address, and then formulate and implement action plans.
- Build an organization that seamlessly realizes "Placing the best-fit talent in each role globally" (organizations and systems)
- Develop talent capable of realizing Customer-Driven business (behavioral transformation)
- Build a culture that respects the challenges of a diverse workforce and strengthens engagement
Challenges, Risks and Opportunities
The Teijin Group's sustainable growth and enhancement of corporate value depend significantly on strengthening its human capital, which is responsible for executing management and business strategies, and enabling its talent to thrive. As the transformation of our business portfolio progresses, we recognize that one critical factor directly linked to establishing competitive advantage and achieving sustainable growth is the ability of personnel with diverse values and expertise to collaborate across organizational and business boundaries and create value through co-creation. Based on this recognition, the Teijin Group has identified and assessed the key risks and opportunities related to human capital as follows.
| Organizational and HR challenges (Gap between our vision and the current situation) |
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Eliminating organizational layers and silos
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While loyalty to individual organizations is strong, optimization occurs within silos.
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There is either a shortage of the required talent or an insufficiently optimal placement of existing talent.
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Globalization
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Talent transfers are difficult due to differences in HR systems across countries and regions.
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There is no system for centrally managing talent globally.
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Transitioning to "Placing the best-fit talent in each role" (Job-based HR system and autonomous career development)
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Because organizations have been structured around talent, it is difficult to respond flexibly to business portfolio transformations (by assigning suitable positions to people).
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Creating a corporate culture that encourages employees to take on challenges
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An organizational culture characterized by a strong tendency toward homogeneity and passivity, with a fear of failure.
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| Risks (Factors that could hinder management strategy) |
Opportunities (Value creation stories) |
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| 【Risks arising from diversity and organizational structure】 The risk that delays in advancing diversity and the arising of silos caused by factors such as multilayered organizational and hierarchical structures may hinder constructive discussion and cross-functional collaboration. |
【Creating new value by bringing together diverse technologies, expertise, and knowledge】 The potential to create new value through collaboration across organizational and business boundaries by harmonizing HR systems globally, revitalizing job posting, and visualizing the talent base with diverse technologies, expertise, and extensive knowledge. |
| 【Risks related to securing and retaining the talent needed to execute strategies】 The risk of being unable to secure the talent needed to execute strategies due to factors such as increasing difficulty in recruiting and retaining talent with the necessary skills and experience, younger and next-generation leaders, and talent responsible for manufacturing operations such as production lines; imbalances in the age structure; reduced talent mobility resulting from differences in HR systems; and delays in responding to these issues due to a lack of visualization. |
【Creating value by securing and retaining the talent needed to execute strategies】 The potential to enhance our ability to recruit and retain talent, secure the talent needed to execute strategies, optimally deploy talent globally, and increase the likelihood of successful strategy execution by implementing job-based evaluation and treatment and by supporting employees' autonomous development. |
| 【Risks related to talent autonomy and engagement】 Risk that declining employee engagement, insufficient awareness of and action toward autonomous career development, and an organizational culture that fears failure may hinder the generation of innovative ideas and employees' willingness to take on challenges. |
【Creating innovation and improving productivity through talent autonomy and co-creation】 The potential to foster a willingness to take on challenges, leading to innovation and improved productivity, by leveraging a corporate culture founded on the pioneering spirit and customer-focused approach passed down since our founding, as well as employees' strong loyalty, and creating an environment where diverse talent can learn autonomously, inspire one another through dialogue, and thrive with a high level of engagement. |
Governance
With regard to matters concerning human capital and human resources strategy, the Board of Directors appoints an officer responsible for human resources and general affairs, who assumes the role of Chief Human Resources Officer (CHRO) and is responsible for planning, formulating, and promoting human resources strategies aimed at realizing the medium- to long-term management and business strategies. The CHRO formulates human resources strategies based on the management and business strategies and reports them to the Board of Directors as part of the medium-term management plan after discussions and deliberations at the Group Strategy Committee and other relevant forums. In advancing our human resources strategy, we pursue company-wide initiatives in close coordination with the existing HR functions of our Group companies and businesses, as well as with the Human Resources Business Partners (HRBPs) established within each business unit, while taking into account factors such as the scale and background of each organization. In addition, with regard to key initiatives included in the human resources strategy, the status of initiatives is deliberated or reported at the Group Strategy Committee throughout the entire process from planning to implementation, and progress on human capital and the human resources strategies is reported regularly to the Board of Directors on an annual basis, ensuring appropriate oversight by the Board of Directors.
Organization Building
Promote "placing the best-fit talent in each role globally" to seamlessly contribute to the execution of management strategy
To achieve the transformation to a Customer-Driven business, the Teijin Group is building systems centered on "placing the best-fit talent in each role globally." This involves identifying the positions required to execute our business strategies and establishing a framework for assigning the most suitable talent to those positions on a global basis. By grounding this in a position-based organizational structure and increasing global talent mobility, we aim to truly realize placing the best-fit talent in each role globally.
Advancing Succession Planning
To achieve "placing the best-fit talent in each role globally," it is essential to shift from the conventional approach of assigning roles based on available talent to building an organization based on the positions required. As a first step toward this transformation, the Teijin Group has been enhancing its succession planning since 2023. By defining the talent profiles required for each position to lead the Group in the future and strategically developing and assigning talent accordingly, we are building the foundation for "placing the best-fit talent in each role." For each core position, we identify five to seven successor candidates. For executive officer positions, the suitability of the candidates and development policies are discussed at a meeting among the CEO, the CHRO, and the incumbent based on the draft proposal prepared by the incumbent. For division general managers, the same is discussed at HR meetings attended by the CHRO, the responsible executive officer, and the incumbent.
| Indicator | 2025 successor coverage ratio: 436% (Total successors ÷ total positions) |
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Evolution of Global Talent Management through the Job-Based HR System
We are clarifying positions and defining the talent profiles required for such positions through more sophisticated succession planning, while introducing and enhancing a job-based human resource system for managers. This job-based human resource system is designed to provide market-competitive compensation for organizations and positions that are structured so as to align with management and business strategies, while supporting the assignment of "Placing the best-fit talent in each role globally". The system also respects the challenges of each and every employee and provides a foundation to support autonomous career development utilizing a wide range of expertise. By FY2025, Teijin Limited and Teijin Pharma Limited had completed the rollout of the system for managerial positions in Japan and had developed and internally disclosed job descriptions. Going forward, we will expand its scope and strengthen how it is managed in an effort to achieve the optimal placement of human resources and accelerate growth.
| Indicator | FY2025 job descriptions published: approximately 600 positions |
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Enhancing Global Talent Mobility
We have been establishing a foundation for position-based talent management through succession planning and the introduction of a job-based human resource system. To promote the assignment of "Placing the best-fit talent in each role globally", it is essential to increase talent mobility and to optimize talent allocation on a global basis. To this end, the Teijin Group is creating an environment where employees can autonomously develop their careers globally. We also offer various internal job posting programs, including "Global Job Posting," which is available globally; "Job Challenge," which is open to employees across the Group in Japan; and "Free Agent (FA)," which allows employees to apply directly to transfers to positions of their choice. In FY2025, however, several challenges became apparent due to factors such as uncertainty about the future arising from the ongoing business portfolio transformation, differences in HR systems and practices across regions, and insufficient coordination among organizations. These challenges included a decline in participation in Job Challenge in Japan and the fact that Global Job Posting had yet to result in a successful placement. Going forward, we will create an environment where employees can confidently take on new challenges by harmonizing HR systems globally, enhancing the transparency of position and job information, strengthening internal communication, and promoting the utilization of talent across organizational boundaries. At the same time, we will foster greater awareness of autonomous career development and increase talent mobility globally. Through these initiatives, from FY2026 onward, we aim to ensure Global Job Posting becomes firmly established and to further enhance talent mobility.
| FY2023 | FY2024 | FY2025 | |
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| Global Job Posting / Job Challenge: Number of Applications (A) | 95 | 105 | 53 |
| Number of Successful Placements (B) | 76 | 26 | 5 |
| Position Fulfillment Rate (B/A) | 80.0% | 24.8% | 9.4% |
Case study 1: Job Challenge and Job Posting Week
New Business Development Division
(Recruitment: September 2023 - Appointment: July 2024)
I learned about Job Posting Week when I was looking for a new area where I could make use of my past experience. Because this event enabled me to understand the atmosphere at each workplace, subsequent communication went smoothly. At present, while taking advantage of my experience in business planning, logistics, and sales, I feel I am able to grow. I also handle many overseas companies, which makes my work rewarding every day, and in the future I envision a career path where I will be stationed overseas to further rise the ranks.
To revitalize the Job Challenge internal job posting program for employees across the Group in Japan, we have held "Job Posting Week" since FY2023. Through online briefings conducted by the heads of the departments offering positions, employees can deepen their understanding of the work and workplace environments, and get their questions answered on the spot, which provides opportunities for two-way communication. These briefings also enable employees, regardless of whether they intend to apply for a position, to learn about the various organizations and types of work available within the Teijin Group. This helps them to gain a better understanding of their career options and to more clearly envision the careers that they aspire to.
Case study 2: "STAMP," a program to promote global talent mobility
To promote global job posting, it is important not only to improve relevant systems and programs, but also to lower the psychological and practical barriers employees may face when taking on challenges in new environments. As part of these efforts, the Teijin Group launched the Short-Term Assignment Mobility Program (STAMP) in FY2025 to strengthen the utilization of human resources and collaboration globally. This program is an initiative designed to broaden the horizons of employees and support autonomous career development through practical experience in different regions and businesses. In the pilot program for FY2025, we welcomed two people from Singapore to Teijin Limited (Japan) where they engaged in work for approximately four weeks. The participants were exposed to different ways of working and cultures, which deepened their understanding of the organization and the business. The feedback received indicated that the participants were surprised by the high level of expertise of the local employees and realized that collaboration across regions and businesses can lead to further value creation. They also noted that experiencing the corporate culture firsthand made it easier to engage in proactive communication. Even in a short period, experiences in different environments help employees gain fresh perspectives and contribute to the formation of cross-organizational networks. We position STAMP as an initiative to support the global challenges of employees, and we expect that the insights and confidence the participants gain from the program will encourage them to apply for a global job posting. In the future, we will look to expand the regions and businesses covered by the program and gradually facilitate the mobility of human resources globally. This will help us assign "Placing the best-fit talent in each role" and further propel the "One Teijin" concept.
Talent Development
Contributing to a Customer-Driven business through our people
As a result of operating a diverse range of businesses, the Teijin Group has a wealth of talent with diverse expertise and experience, which is one of our key strengths. Meanwhile, we are in the initial stages of transforming into a Customer-Driven business. Going forward, as each business advances in line with its strategy, we must develop a clearer picture of the talent required to support growth. Against this backdrop, we will continue to promote and strengthen efforts to foster awareness of autonomous career development, which we have pursued since the period of the previous medium-term management plan, positioning this as a common foundation for talent development.
Promoting Career Autonomy
Among the Teijin Group's Values is "Fostering growth through diversity and expertise." When every employee takes ownership of their career, shaping it according to their own aspirations and continuing to grow proactively in response to changes in their environment, this helps us place the best-fit talent in each role globally. At the same time, we believe that forging one's own career in this way and working with a sense of personal growth leads to a greater sense of fulfillment and satisfaction for each employee, and ultimately to happiness in working for the Teijin Group. Based on this fundamental approach, we are fostering a corporate culture that encourages employees to take on challenges while comprehensively promoting a range of initiatives that support autonomous career development, including making career paths more visible, providing opportunities for employees to choose their own careers, and supporting skill development. By linking these initiatives through OJT (on-the-job training), strategic assignments and rotations, and systematic training and development programs tailored to each career stage, we aim to develop talent across the Teijin Group.
Fostering awareness of career autonomy
At Teijin Limited and Teijin Pharma Limited, we started offering career interviews for employees across all job types in April 2025. To make these interviews more effective, we are also running training sessions to help supervisors be more supportive of their subordinates' careers.
| Indicator | Career interview implementation rate: 96.7% (as of November 2025) |
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In a survey conducted after the interviews, 41% of respondents indicated that they had more opportunities to think about career development, while only 13% reported that it prompted them to take action, such as obtaining qualifications or studying. This tells us that translating awareness into action remains a challenge. Going forward, in addition to deepening dialogue through career interviews and roundtable discussions, we will further encourage autonomous learning and employees' willingness to take on challenges by leveraging programs such as on-demand online training and financial assistance for self-development.
Making career paths more visible and providing opportunities for employees to choose their own careers
We provide diverse career paths and opportunities to take on new challenges so that employees can broaden their career possibilities according to their own aspirations. In FY2025, in conjunction with the introduction of the job-based human resource system, we developed job descriptions and made them available internally, thus providing greater visibility into each position's responsibilities as well as the required experience and skills. We also provide opportunities for employees to take on new roles and explore new fields through programs such as Global Job Posting, Job Challenge, and STAMP. These programs also help employees gain a better understanding of the diverse roles and career options available within the Group, enabling them to form a clearer picture of their own future career paths.
Supporting skill development
The Teijin Group is also working to expand learning opportunities to help employees realize their individual career visions. In addition to making career interviews a foundational practice, we encourage proactive learning and growth by providing an on-demand learning platform and financial assistance for learning opportunities, such as English language training.
Fostering a corporate culture that encourages employees to take on challenges
As a foundation for supporting career autonomy, we are working to foster a corporate culture in which employees can take on challenges with confidence and growth. By welcoming challenges such as taking on new roles and exploring different fields, and by recognizing the experience and learning gained through those efforts as valuable, we create a virtuous cycle of challenge and growth. We are also developing an environment in which diverse talent can inspire one another and fully demonstrate their capabilities, while fostering an organizational culture that enables each individual to continue shaping their own career autonomously. We aim to realize a corporate culture in which it is natural for employees to hone their expertise through collaboration with diverse colleagues and proactively seize opportunities for growth.
Talent Development to Support Management and Business Strategies
The Teijin Group believes that, in order to advance the transformation into a Customer-Driven business by placing the best-fit talent in each role globally and to achieve sustainable value creation for the future, it is essential for every employee to deepen their expertise in line with their respective roles and to continue creating new value. Accordingly, our fundamental approach to talent development is to support employees in acquiring the expertise and experience needed to execute business strategies, while encouraging them to develop their careers autonomously. As the foundation of this approach, HRBPs assigned to each business are deeply involved in business strategy, identifying the talent profiles and capabilities that will be required going forward, thereby enabling us to enhance talent development and deployment.
"STRETCH Advanced" and "JuMP"
Focusing primarily on successor candidates identified through succession planning, we have established a talent pool called the TMSP (Top Management Successor Pool). This pool is reviewed annually, and promising candidates are identified for each position, with strategic placement and development carried out in a focused manner. The placement and development program for these candidates is known as STRETCH Advanced, a multifaceted and practical program designed to foster the next generation of management leaders. The program is structured into three phases: diagnosis, confirmation, and capability development. In line with the capability development areas identified during the diagnostic phase, individualized programs are implemented to accelerate the development of core talent. We are also implementing a program called "JuMP" (Junior Management Program), which selects top-performing employees from across our businesses to develop them into candidates for managerial positions at or above the core department general manager level.
DX talent development
The Teijin Group positions the development of DX talent as an important strategic priority. With the aim of developing DX talent with more advanced capabilities, we have developed a DX Talent Development Roadmap and DX Talent Career Paths based on our own classification of DX talent.
Other programs
- Internal random meeting
Using RPA, registered employees are randomly matched to create opportunities for one-on-one meetings. This initiative promotes networking across the organization and creates opportunities for new ideas and innovation to emerge.
- New employee tutor system
After new employees are assigned to their departments, a young senior employee, known as a "tutor," is appointed to each new employee to provide support. In addition to helping them learn their job duties, tutors also provide advice and follow-up through regular meetings to encourage the new employees' autonomous growth.
- Career change support system (union members only)
This system aims to support the lifelong career planning of employees who choose to retire before the mandatory age to pursue new employment opportunities. In addition to the standard lump-sum payment and pension for voluntary retirement, employees receive a special additional payment. The system also allows them to designate a "career transition preparatory period" for the purpose of acquiring the knowledge and skills that will be useful in their new career and making other necessary arrangements.
Culture Building
Remaining a company that chooses and is chosen respecting the challenges presented by diverse employees and strengthening engagement
We aim to be a company where employees can expand their potential by taking on challenges and feeling happiness through their work. In addition to conventional measures to enable talent to thrive, we are widening our focus to include realizing happiness through work, while promoting DE&I and enhancing engagement as the foundation for a relationship in which the Company and employees choose and are chosen by one another.
Promoting DE&I to Turn Diversity into Value Creation
By diversifying its businesses, the Teijin Group has built a strong base of talent with diverse expertise and experience, which we regard as one of the Group's key strengths. As of March 2026, approximately half of our employees work outside Japan. This globally distributed talent base represents a source of competitive advantage and value in delivering solutions from a Customer-Driven perspective. Going forward, by bringing together these diverse strengths across organizational boundaries, we will accelerate the development of talent capable of taking an integrated approach to customer challenges and proposing solutions, as well as talent capable of translating such solutions into business growth.
Overview of DE&I
To create an environment where diverse talent can thrive, the Teijin Group has positioned DE&I as a key pillar of its human resources strategy and is advancing initiatives, organizational frameworks, and an inclusive culture in an integrated manner.
Rolling out measures to enhance awareness of DE&I
To strongly promote our business activities globally, it is essential to make full use of the abilities of diverse human resources who differ in nationality, race, gender, sense of values, ideas, and experience. The Teijin Group upholds "Fostering growth through diversity and expertise" as one of its three Values, and accordingly has put in place a work environment in which every Group member can fully harness their individuality and attractiveness to make the most of their abilities. Since 2002, we have issued a pamphlet entitled "together" to raise awareness of DE&I every year. Starting with the 2020 version, we have prepared English and Chinese versions, in addition to the Japanese version, so that it can be distributed to all Group employees. In FY2023, we included a discussion between the CEO and female outside directors titled "Why Does Teijin Need to Foster D&I? Reaffirming the importance of leveraging diverse human resources." In addition, the message from the CEO reiterates the necessity of promoting DE&I in building a resilient organization and realizing our long-term vision. In FY2024 issue, our CHRO and employees held a dialogue on the theme of "Toward an Era of Career Autonomy: Our Choices for Surviving a Period of Transformation." In the message from leadership, we took the opportunity to clearly reiterate our philosophy on diverse career choices, the need to increase talent mobility, and the importance of building one's career autonomously.
Diversifying management
We are steadily promoting diversity in management by setting KPIs to enhance the quality of decision-making through diverse perspectives. The percentage of female executives has continued to increase, reaching the milestone set for 2026. Meanwhile, we recognize that further increasing the ratio of non-Japanese executives remains a challenge. Nevertheless, the number of executives with extensive global business experience has been steadily increasing, further strengthening the foundation for incorporating diverse perspectives and values into management. We are also increasingly appointing mid-career hires to senior management positions. On the Board of Directors and in CxO positions, including the CHRO, CTO, and CDO, we are strengthening our management structure by leveraging the knowledge and expertise they have gained outside the Group. Among managers, who represent an important talent pool for management positions in the future, the percentage of mid-career hires remains around 40%, roughly the same as the percentage of mid-career hires among employees overall. Meanwhile, increasing the number of women in managerial positions remains a challenge. Based on this recognition, we provide support tailored to individual needs through initiatives such as cross-company mentoring and career development training. We are working to enhance diversity in management with the aim of achieving meaningful participation that goes beyond simply meeting numerical targets, where each of our diverse talents can leverage their strengths and participate in decision-making.
Diversity-Related KPIs
| Item | Results as of October 2023 | Results as of October 2024 | Results as of April 2026 | Milestone as of April 2026 | Target for April 2030 | |
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| Executive officers*1 | Women | 12% | 20% | 22% | 20% | 30% |
| Non-Japanese nationals | 8% | 8% | 4% | 10% | 30% | |
| Managers*2 | Female department and section managers | 10% | 11% | 10% | 12% | 20% |
- *1Directors and Statutory Auditors (from June 2025 onward, Directors who are Audit & Supervisory Committee Members), and Group Corporate Officers
- *2Line managers in global positions, including Japan
Closing the gender gap
In 2000, as a top-down initiative, the Teijin Group established a dedicated organization to promote women's empowerment. Since then, with the aim of realizing an organization where every employee can fully demonstrate their capabilities regardless of gender, we have implemented a wide range of initiatives. These include enhancing programs that support employees in balancing childcare and work, as well as fostering career awareness among women, providing unconscious bias training, and creating networking opportunities both within and outside the Group. Over the medium to long term, we believe that the percentages of female employees, female managers, and female executives should be aligned. At present, however, there are disparities in these percentages across organizational levels.
Percentage of Female Employees / Percentage of Female Managers / Percentage of Female Executives
- *Figures are as of March 31 for each fiscal year and include employees loaned to companies other than Teijin Limited and its consolidated subsidiaries, and exclude employees received from external entities. Management positions are at the level of section manager or higher. Executives include Directors, Statutory Auditors (from June 2025 onward, Audit & Supervisory Committee Members), and Group Corporate Officers
For the senior management level, we have introduced a cross-company mentoring program aimed at building a pipeline of future executives. In this program, executives from participating companies mentor female managers from other firms. Through this, the female managers gain direct insights from the senior management of other companies, allowing them to elevate their perspectives, broaden their horizons, and cultivate their career awareness. For the mentors, it is an opportunity to expand the breadth of their own management skills. The program also creates opportunities for participants to interact, which helps foster professional networks both inside and outside the company. From FY2026 onward, the initiative is being conducted by eight companies: Teijin Limited, Idemitsu Kosan Co., Ltd., Tokio Marine & Nichido Fire Insurance Co., Ltd., Ricoh Company, Ltd., Santen Pharmaceutical Co., Ltd., Nomura Real Estate Development Co., Ltd., Sumitomo Mitsui Trust Bank, Limited, and Mitsubishi Materials Corporation.
- *In FY2025, the participating companies jointly held initiatives, including a panel discussion in conjunction with International Men's Day and International Women's Day, as well as leadership training for women who are potential candidates for managerial positions. Participation was expanded beyond those taking part in the mentoring program, providing opportunities for employees to reflect on who they aspire to be and broaden their perspectives on their careers through dialogue across company boundaries.
In recognition of this, we are focusing on strengthening the pipeline of female talent from the perspective of widening the pool of talent who can assume decision-making roles in the future, including by systematically developing and promoting female candidates for managerial positions. Going forward, through initiatives at each stage of recruitment, assignment, and development, we will continue to promote the advancement and appointment of female talent.
Promoting the employment of people with disabilities
The Teijin Group aims to be a company where employees with disabilities can demonstrate their capabilities and contribute to the Company and its businesses, while also experiencing a sense of satisfaction and pride in being members of a workforce supporting the economy and society. Teijin Soleil Co., Ltd., a special subsidiary, primarily employs people with intellectual, developmental, and mental disabilities. Through its office support business (which provides administrative assistance and cleaning services) and its agricultural business (which produces and sells organic vegetables, edible roses, and Phalaenopsis orchids), the company creates opportunities for every employee to thrive in ways that make the most of their individual characteristics.
Takayuki Suzuki
(Back left of the photo)
Our Phalaenopsis orchid business ships large-flowered orchids. Thanks to the meticulous cultivation and care that leverages the strengths of our employees with disabilities, these orchids are traded at prices that are about 20% higher than the market average. Major corporations have become repeat customers, using our orchids for celebratory gifts for newly appointed company presidents and other occasions. The flower language of the phalaenopsis orchid is "happiness flies to you," and it is often chosen as a gift to express one's feelings toward someone on important occasions in life. A young man in his twenties with developmental disabilities joined our company after graduating from a special-needs high school. When he presented a three-stem phalaenopsis orchid, which he had carefully nurtured, to his grandmother, she was so moved with joy that she burst into tears. Every person has something they excel at. Among people with disabilities, some have rich sensitivity or exceptional concentration. At our company, we embrace the conviction of "providing high quality precisely because of disabilities," making the most of such strengths. We believe that drawing out the potential of people with disabilities and offering them opportunities to build a positive future is a truly meaningful endeavor.
As one outcome of these efforts, the 2025 engagement survey showed a 9-point year-on-year improvement at Abiko Farm, placing it among the top-performing workplaces across the Group's companies and departments in Japan. Since last year, the agricultural business has also offered a Phalaenopsis orchid collection and reuse service as an initiative that both addresses customer needs and gives consideration to the environment. Under this initiative, Phalaenopsis orchids received by companies as gifts are collected and, wherever possible, recycled or reused. From September 2025 to April 2026, approximately 250 pots were collected from 11 companies, demonstrating steady expansion of the service. In addition, we have launched a "Prepaid Collection Ticket Service," under which the gift giver pays the collection fee in advance. The service is expected to help promote a gift-giving culture that reduces the burden on recipients. Through these initiatives, we are creating employment opportunities for people with disabilities while incorporating customer and environmental value into our business models. This service was developed in response to feedback from customers who faced difficulties managing and disposing of Phalaenopsis orchids after receiving them as gifts, and represents a concrete example of the Teijin Group's efforts to realize a Customer-Driven business.
As of March 2026, the employment rate for persons with disabilities at Teijin Limited, Teijin Pharma Limited, Teijin Healthcare Limited, and Teijin Soleil Co., Ltd. was a combined 2.8%, exceeding the legal requirement of 2.5% (as of March 2026). In FY2021, the company received the Challenge Award at the Noufuku Award, a first for a special subsidiary, and in FY2023, it obtained the Monisu certification.
Promoting efforts to support LGBTQ+ employees
To support the success of our LGBTQ+ employees, since 2017, we have implemented four key initiatives: (1) clearly stating the company's policy, (2) raising employee awareness, (3) revising HR and payroll systems to accommodate LGBTQ+ individuals, and (4) providing support for LGBTQ+ individuals. We place a particular emphasis on raising awareness and providing individual support. We have conducted events to foster an understanding of the experiences and thoughts of LGBTQ+ individuals, as well as training sessions by employee level to deepen the understanding of LGBTQ+ topics. We also respond individually to consultations from our LGBTQ+ employees.
Supporting Every Employee in Achieving Well-being
The Teijin Group seeks to build relationships in which the Company and employees mutually choose one another and grow together, rather than one in which the Company alone chooses its employees. We also aim to become a Group that "future employees" choose as a place to work. To remain an employer of choice into the future, we continuously work to create an environment that supports the well-being of each employee by making the Teijin Group a rewarding, comfortable, and secure place to work.
Creating a Rewarding Place to Work
The Teijin Group aims to be a company where every employee can expand their potential and thrive at work. As society and the business environment undergo significant changes, employees' values and perspectives on their careers are becoming increasingly diverse. To respond to these changes, the Teijin Group is moving forward with the introduction of a job-based human resource system. We are transitioning to a system that places greater emphasis on the roles employees perform, the results they achieve, and their expertise. We are working to create an environment where every employee can leverage their individual strengths to take on challenges and thrive. We are also expanding opportunities for employees to take on roles and join organizations of their choice through internal job posting programs. Employees are able to proactively choose where they work and what work they do in line with their own career visions. While not every aspiration can be realized immediately, we are continuing the shift from "careers determined by the Company" to "careers shaped by employees themselves." Furthermore, opportunities are expanding to work at Group companies in Japan and overseas, as well as to gain global experience. Experience across diverse businesses and regions contributes not only to the growth of individual employees but also to the creation of new value. We are also working to establish fair evaluation and feedback mechanisms so that employees can work while experiencing a sense of challenge and growth. Under our semiannual Management by Objectives (MBO) system, employees set goals and review their progress through dialogue with their supervisors, receiving evaluations and feedback on their achievements and growth. We have also introduced 360-degree evaluations for managers, enabling them to use feedback from multiple perspectives for their own growth and the improvement of their management practices. Through these efforts, we are creating an environment where employees can continue to take on challenges with confidence in how they are evaluated. Guided by our value of "Respecting all challenges," we aim to be a company where employees can shape their own careers based on their own aspirations and thrive by leveraging their individual strengths. We will continue to foster a virtuous cycle in which employee growth and job satisfaction contribute to enhancing corporate value and strive to realize a rewarding place to work.
Creating a comfortable place to work
The Teijin Group believes that the creation of an environment where each employee can maintain their physical and mental health and fully demonstrate their capabilities provides the foundation for sustainable growth, and that enabling employees to work in good health in an environment free from physical and mental stress serves as a driving force for the sustainable growth of the Group. Based on this belief, we are committed to promoting health and productivity management, and Teijin Limited has been recognized as a Certified Health & Productivity Management Outstanding Organization for 10 consecutive years. Through initiatives such as promoting telework and other flexible workstyles, optimizing working hours, and encouraging employees to take leave, we are working to create workplaces that are both comfortable and rewarding.
【Flexible Work Arrangements】
- Telework system
In FY2019, Teijin and Teijin Pharma introduced telework programs that allow employees to work outside the office even in the absence of a reason such as childcare or family care. Since FY2020, we have been expanding these telework programs as a temporary measure to prevent the spread of COVID-19 infections. However, at the moment, we have established limits on teleworking hours for each business unit based on the type of work done, as we continue to strive to realize flexible and diverse workstyles. Looking ahead, we will effectively combine the telework system with actual face-to-face communication in the workplace to enhance the productivity of the organization while increasing workstyle flexibility. By doing so, we will work to enhance this system so as to ensure that all employees can demonstrate their capabilities to the greatest extent possible.
- Management of overtime hours/actual working hours
To maintain the mental and physical well-being of our employees, we encourage the planned use of annual paid leave, strictly enforce advance applications for overtime work, and have introduced "No Overtime Days" to ensure appropriate working hours. Furthermore, we are working to standardize and streamline operations through the use of Robotic Process Automation（RPA). We also provide flexible workstyles such as teleworking, flextime, and shorter working hours, enabling employees to balance their work and personal lives according to their individual circumstances and life stages. In this way, we are fostering an environment in which employees can maintain a better work-life balance, free from restrictions of time and place.
- Encouragement of paid annual leave
Employees in their first year of employment are entitled to 15 days of paid annual leave. After the first year, one additional day is granted for each year of service, up to a maximum of 20 days per year. Employees can carry over up to 40 days to the following year. To promote work-life balance and reduce total working hours through planned use of paid annual leave, we designate specific days each year to encourage taking paid annual leave.
Workstyle-related Indicators*1
| FY2023 | FY2024 | FY2025 | |
|---|---|---|---|
| Average monthly overtime hours*2 | 12.0h | 11.7h | 11.3h |
| Annual paid leave utilization rate | 78.9% | 80.5% | 80.6% |
- *1Teijin Limited
- *2Non-managerial employees (career-oriented and clerical positions)
【Balancing Work with Individual Life Events】
- Support for balancing work with childcare
Since establishing the Office to Promote Women's Advancement in 2000, we have continued to promote efforts to help our employees balance their work with childcare. Specifically, we have been working to design flexible and diverse systems that make it easier for employees, regardless of gender, to work while raising children, including by enabling the reduced hours work system to be used until the end of the fiscal year in which an employee's child reaches third grade in elementary school, offering wage compensation during childcare leave by allowing the utilization of accumulated paid leave, and providing allowances for babysitter expenses. We have also created manuals for the management of such systems and have worked to promote understanding in the workplace, including among supervisors, and ensure smooth communication. Through these efforts, we are focused on creating an environment where each employee can work with greater enthusiasm while balancing work with childcare. Furthermore, in preparation for instances where a parent, primarily in urban areas, cannot find a daycare center due to lack of availability and is therefore unable to return to work when planned, we provide support for employees on childcare leave in finding daycare facilities. With the support of the "Kosodate Mirai Concierge" (Childcare Future Concierge), we help employees return to work more smoothly.
- Support for balancing work with nursing care
Cases of employees providing nursing care for their parents and other family members are expected to increase in the future as Japan's declining birthrate and aging population progress. Ensuring that each employee can balance work with providing nursing care for their family members is an important issue that we, as a company, must address. To that end, we have established systems that take into account the unpredictable nature of nursing care in terms of when and for how long care will be needed. For example, the reduced working hours system for nursing care can be used throughout the period in which nursing care is required and can be divided into multiple periods of use as many times as needed. In this way, we are creating an environment where employees can continue to work with peace of mind while providing nursing care. We also support employees in balancing work and nursing care through a range of services, including holding seminars to promote knowledge and awareness of nursing care and related systems, providing access to the "Nursing Care Concierge Desk," where employees can seek advice on what to do when they actually face the need to provide nursing care, and "Wakaru Kaigo Biz," where employees can access information on nursing care.
- Support for balancing work with personal illness
We have introduced a reduced working hours system for employees dealing with a personal illness. Through this system and other efforts, we support employees in balancing work and medical treatment, including employees diagnosed with cancer and those undergoing fertility treatments. Furthermore, although separate from personal illnesses, we held a seminar on women's health in FY2023, as we did in FY2022, with the aim of having male employees better understand women's health issues, such as the physical and emotional uneasiness that occurs during menstruation. We also are working to enhance literacy of women's health within our training for newly appointed managers.
【Other Support Systems and Welfare Benefits】
- Various Measures to Support Asset Formation
These include property accumulation savings, housing loans, an employee stock ownership plan, and a retirement pension.
- Cafeteria-Style Benefits Plan (Select Plan)
This system allows employees to personally consider, select, and use benefits that meet their own needs from a variety of options within a pre-allotted, point-based subsidy framework.
- System to Support Qualification Acquisition
The Company provides support to employees who take exams for and obtain qualifications that are useful in their duties, contribute to the company's credibility, or aid in the development of their professional capabilities.
- Hello-Again System
The Hello-Again System allows former employees who left the Teijin Group due to family circumstances such as marriage, child-rearing, or caregiving to return to the Teijin Group under certain conditions. (Cumulative number of employees who have used the system as of March 31, 2026: 17)
- System Allowing Employees to Take Leave When Their Spouse Is Transferred Overseas
At Teijin Limited, we have a system that allows employees to take up to three years of leave when accompanying their spouse on an overseas work assignment.
- Paid Leave for Volunteer Activities
To promote volunteer activities, the Teijin Group has introduced a system at Teijin Limited and Teijin Pharma Limited that enables employees to take paid leave for volunteer activities.
Creating a workplace where employees can work with peace of mind
An environment where each employee can continue to work with peace of mind is an important foundation for sustainable growth and value creation. The Teijin Group is working to create comfortable work environments and enhance various support programs so that diverse talent can build their careers while fully demonstrating their capabilities. As a result of these efforts, we maintain a high employee retention rate. Going forward, we will continue to be a company of choice for talent, both now and in the future, thereby achieving sustainable growth and value creation.
Retention Status
| FY2023 | FY2024 | FY2025 | |
|---|---|---|---|
| Voluntary turnover rate | 2.9% | 2.4% | 3.0% |
| Three-year retention rate for new graduates | 92.2% | 91.7% | 81.6% |
- *Teijin Limited
【Determining the Status of Groupwide Labor Management】
The Teijin Group carries out regular surveys on labor management at Group companies. We identify management issues in our Group personnel management system and implement effective measures as required, particularly from the viewpoint of labor corporate social responsibility (CSR). From the survey, we obtain data on basic labor CSR indicators. After amendments to labor-related laws or if otherwise needed, the Teijin Group reviews the labor management status, employment rules, and personnel systems of all Group companies in Japan. Since labor laws and regulations differ from country to country, with regard to overseas Group companies, we conduct surveys of basic items, and also implement additional surveys on the human resource system and salary systems, as necessary.
【Maintaining Sound Industrial Relationships】
The Teijin Group views the labor union as an important stakeholder, and we are working to maintain and improve our good relationship with the union. As fundamental concepts in industrial relations, we emphasize "mutual understanding and thorough prior consultation." With regard to labor-management meetings, Teijin adheres to a comprehensive collective bargaining agreement by which meetings will be called upon request from either the Company or union side. At Group companies in Japan, all employees except directors and managers belong to the labor union. At the Group Labor-Management Council, which brings management and main union officials together, and also at Labor-Management Committee meetings (held as required), members exchange opinions on business as a whole and hold discussions with the aim of improving workplace environments. In addition, when we revise working conditions during the spring season, we hold discussions on a broad range of issues pertaining to human resources, including not only increasing base pay and other compensation but also the ideal direction of our human resource management systems and efforts to secure personnel, develop their capabilities, and enhance their motivation. Labor unions and work councils (joint labor-management councils) have been established in overseas Group companies, and consultations are held between the company and representatives of the employees to achieve a better work environment and working conditions.
Preamble of Labor Agreement between Teijin Limited, Teijin Pharma Limited, Teijin Healthcare Limited and Teijin's Labor Union (largest labor union of Teijin Group)
Teijin Limited, Teijin Pharma Limited, Teijin Healthcare Limited and Teijin's labor union mutually respect the position of one another, and work together towards establishing industrial peace through the sound development of business and consideration of union member's welfare. With this in mind, the Teijin Labor Agreement was concluded, and both sides are committed to observing it in good faith.
- *The labor agreement with Teijin's labor Union is applicable to all full-time and fixed-term employees.
Current status and future direction from an engagement perspective
The Teijin Group positions improving employee engagement as a key management issue in creating an environment where every employee can work with enthusiasm and fully demonstrate their capabilities. To this end, we conduct an engagement survey across the entire Group, including global sites, to regularly gather employee feedback. The survey results are shared within each organization and used to identify issues and consider and implement improvement actions, thereby driving organizational and cultural transformation and enhancing employee fulfillment at work. During the period of the previous medium-term management plan, we established a common Purpose for the Group in April 2024 and worked to foster an awareness of value creation under the "One Teijin" concept through initiatives to embed the Purpose and opportunities for dialogue, including town hall meetings. As a result, our employee engagement score improved from 62 in FY2023 to 64 in FY2024, achieving the milestone of 64 set for FY2026. The response rate also increased from 68% in 2022 to 82% in 2025, with a growing number of employees participating in the survey with a sense of ownership in building a better organization.
Engagement-Related KPIs
| FY2022 Results | FY2023 Results | FY2024 Results | FY2025 Results | FY2025 Milestones | FY2029 Target (as of April 2030) |
|
|---|---|---|---|---|---|---|
| Engagement score | 64 | 62 | 64 | 64 | 64 | 68 |
| Response rate | 68% | 71% | 76% | 82% | - | - |
- *The actual score will be based on the results of the engagement survey conducted every September
In particular, we saw increases in scores for indicators related to organization and culture, such as "communication," "collaboration," "team," and "psychological safety." The response rate rose from 76% in 2024 to 82% in 2025, confirming that employee interest and participation remain high. Moreover, expanded opportunities for communication across business units and regions, improvement activities at the team level, and the introduction of career interviews have helped strengthen trust and psychological safety, thereby encouraging employees to speak up proactively and collaborate with one another. The engagement survey serves not only to understand the current situation, but also as a foundation for encouraging behavioral change through dialogue based on employee feedback. Going forward, we will continue to listen to the voices of our employees through the survey and create a workplace where every employee finds fulfillment in their work and can experience personal growth and success. At the same time, we will continue to create an environment where employees can fully demonstrate their capabilities, strengthen "One Teijin" collaboration that underpins our Customer-Driven business, and evolve into an organization capable of achieving sustainable growth.
Engagement scores related to organization and culture
- *Psychological safety is the average of three items: Input - Manager, Speak My Mind, and Recognition