Kyocera SLD Laser CSR Report 2023

CORPORATE SOCIAL RESPONSIBILITY
ANNUAL REPORT
FY 2023
APRIL 2022 - MARCH 2023
KYOCERA SLD LASER, INC.
CONFIDENTIAL AND PROPRIETARY

Table of Contents
About KYOCERA SLD Laser................................................................................................1
Introduction to KYOCERA SLD Laser’s Commitment Toward Sustainability .............2
Workplace Equality, Diversity and Inclusion ..................................................................3
Social Citizenship-COVID-19 .............................................................................................4
Security Policies - Data and Privacy .................................................................................5
Supply Chain Management and Export Compliance ....................................................6
Ethics and Code of Conduct ..............................................................................................7
Social Contribution Initiatives ..........................................................................................8
Product Quality and Safety ...............................................................................................9
Product Impact .................................................................................................................10
Environmental ..................................................................................................................11
Sustainability Priorities ....................................................................................................12
CSR ANNUAL REPORT FY 2023
KYOCERA SLD LASER, INC.
CONFIDENTIAL AND PROPRIETARY

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About KYOCERA SLD Laser
KYOCERA SLD Laser, Inc. (KSLD) is a whollyowned
subsidiary and group company of
KYOCERA Corporation, commercializing a new
generation of gallium nitride-based laser light
sources for automotive, mobility, specialty
lighting, and consumer applications. The
company is ISO 9001 certified and automotive
compliant to IATF 16949, and operates facilities
in Santa Barbara and Fremont, CA. KSLD’s high
luminance LaserLight sources are UL and IEC
safety certified and are utilized in a myriad of
applications including automotive & mobility,
specialty & portable lighting, entertainment &
outdoor, projection & AR/VR displays, biomedical
instrumentation & therapeutics, and industrial
imaging & material processing. The company
was recently ranked in Fortune magazine’s “2021
and 2022 Best Workplaces in Manufacturing &
Production,” having promoted an employee
centric corporate culture since its founding.
KSLD’s GLOBAL PRESENCE
• US-based Engineering with
Sales Support Offices in Each
Key Customer Location
Approximately 187 EMPLOYEES
Globally with Over 60 PhDs
• Auto-certified Assembly Line
with a World-Renowned
Supply Chain and Contract
Manufacturers
CSR ANNUAL REPORT FY 2023
KYOCERA SLD LASER, INC.
CONFIDENTIAL AND PROPRIETARY

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KSLD LASER’s
Commitment Toward
Sustainability
KYOCERA SLD Laser (KSLD) is committed to
illuminating our world by Pioneering the Future
of Light. Our annual CSR report describes our
sustainability efforts for FY2023 as shown in
this report describing activities from FY 2023.
We promise to maintain our integrity and
contributions to leading the development and
commercialization of laser-light sources while
focusing on creating a positive impact on the
environment, our community, and the world,
with our dedication to:
• Workplace equality, expanding
diversity and inclusion
• Having robust security policies
protecting data and privacy
• Having high standards for suppliers and
strict export compliance rules
• Ensuring working conditions both locally
and abroad are protecting human rights
• Environmental health and safety and
climate resilience
• Maintaining a high level of product
safety certifications
• Contributing our LaserLight sources to
search and rescue efforts
• Supporting volunteerism within our
community
• Looking after the wellbeing of our
stakeholders
CSR ANNUAL REPORT FY 2023
KYOCERA SLD LASER, INC.
CONFIDENTIAL AND PROPRIETARY

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Workplace Equality,
Diversity and Inclusion
To support workplace equality,
diversity and inclusion, KSLD:
• Remains an equal opportunity employer
• Introduced company training on managing
bias, diversity and inclusion
• Ensured job descriptions have gender neutral
language to attract qualified candidates
• Introduced mentorship program to ensure
cross pollination and exposure, with
opportunities for all employees
• Revamped compensation program and
closely analyzed to ensure equal pay for
similarly situated positions Workplace
Equality, Diversity and Inclusion
• Scheduled periodic onboarding meetings
with executives and senior management
to learn about each department and potential
involvement with that department
• Company Diversity Initiative to learn about
backgrounds of team. Connecting with University
to network and target diverse candidates
• Created Employee Value Propositioncommunicating
unique benefits, culture,
development that employees can expect by
choosing KSLD as employer. Being inclusive and
consistent with all our employees, demonstrates
KSLD as an equal opportunity employer.
CSR ANNUAL REPORT FY 2023
KYOCERA SLD LASER, INC.
CONFIDENTIAL AND PROPRIETARY

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Social Citizenship - COVID 19
KSLD began response to the COVID-19 pandemic
by forming a COVID Emergency Response Team
in January 2020. KSLD’s two main priorities were
health and safety of employees and maintaining
business continuity during this difficult time.
KSLD continues to have preventative measures
mitigating risks to employees throughout 2022 and
now 2023, with focus on employee’s physical and
psychological safety to promote a healthy engaged
workforce and their families KSLD has worked
closely with local health agencies and
experts to develop practical and
conservative protocols. KSLD has
maintained a hybrid work schedule
in addition to rapid response and
communication. KSLD supports
overall employee wellness and
security, maintaining paying
wages for employees affected by
the pandemic prior to state and
federally mandated programs were
in place and after they ended. In addition, KSLD has
conducted training and had employee and visitor
questionnaires in place before coming on-site. KSLD
continues to monitor recent CDC/CDPH/Cal OSHA
guidelines to keep our employees informed.
Health and Safety
Preventative Measures
• COVID Self Certification Questionnaire for
Employees, Contractors and Visitors when
onsite
• Mandatory temperature screening for
anyone coming onsite
• Provided personal protective equipment
• Disinfection and Sanitation stations were
available throughout the sites
• Rapid Response protocols
• Ongoing COVID team and continuous
updates to reflect current standard
CSR ANNUAL REPORT FY 2023
KYOCERA SLD LASER, INC.
CONFIDENTIAL AND PROPRIETARY

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Security Policies - Data and Privacy
The security of the Company’s property is of
vital importance. The Company’s property
includes not only tangible property, but
also intangible property such as algorithms,
processes, analyses, patents, trade secrets and
source code. All employees are responsible for
ensuring that proper security is maintained at
all times.
Given the nature of the Company’s business,
protecting proprietary, confidential and
personal information is of vital concern to
the Company. This information is one of the
Company’s most important assets. It enhances
the Company’s opportunities for future
growth, and indirectly adds to the job security
of all employees.
• KSLD is enhancing privacy policies to better
secure consumer information
• All employees required to sign confidentiality
and IP agreements
• All employees are required to follow the
Company’s NDA Process
• All Employee Information of personal
information and privacy and the
responsibilities to protect the information,
and to not use, disclose such information,
including obligations under CFIUS NSA
• KSLD has implemented an enhanced version
of Information Security and Data privacy
policies adapted from KCJ’s master version to
further protect the data we store and use
CSR ANNUAL REPORT FY 2023
KYOCERA SLD LASER, INC.
CONFIDENTIAL AND PROPRIETARY

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Security Policies - Data and Privacy
• Virtualized the on-prem servers or migrate
services to the cloud to reduce carbon
footprints.
• Traditionally, each IT service is built with its
own dedicated hardware. The hardware is
specified to be able to handle 90% of the
workload. In reality, the servers are sitting
idle most of the time. Virtualization allows
multiple servers or services running on the
same set of computer hardware at the same
time which increase the efficiency of the
hardware usage and reduce the total power
consumption. KSLD is fully virtualized in its
on-prem server environment.
• Cloud based service providers deploy server
farms in a large scale with redundancy, data
protection, efficient power consumption in
mind. Migrating services to the cloud based
environment when possible, could benefit
from those factors. KSLD is using Microsoft
Office 365, Amazon, Oracle Cloud, Box,
Salesforce and more cloud based services.
• Implement IT systems with strong privacy
and security policies to protect the company,
employees, customers, consultants,
contractors, vendors, and etc.
• We want everyone who works at or with KSLD
to feel safe with their personal identity when
conducting their business with KSLD. We
have implemented a set of Privacy Policies
and posted them on our website to ensure
all personal identifiable information are fully
protected and secured.
CSR ANNUAL REPORT FY 2023
KYOCERA SLD LASER, INC.
CONFIDENTIAL AND PROPRIETARY

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Supply Chain Management
and Export Compliance
KSLD continually reviews existing supplier,
and export policies and processes to support
ethics and compliance and responsible
management
KSLD is committed to treating suppliers
lawfully and in an ethical manner by:
• Supplier and vendor verification
process
• Entering significant supplier
agreements through a competitive bid
process where possible
• Protecting confidential information of
a supplier
• Maintaining compliance with export
control
• Formed steering committee to manage
export control compliance
CSR ANNUAL REPORT FY 2023
KYOCERA SLD LASER, INC.
CONFIDENTIAL AND PROPRIETARY

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Ethics and Code of Conduct
KSLD’s Code of Business Conduct and Ethics helps
to provide guidance for applying ethical business
conduct to day-to-day activities. The written policies
as well as employee training communicate legal
requirements, standards of ethical business conduct,
as well as mechanisms for raising concerns.
• KSLD added a hotline and updated our mechanisms
for easy reporting of concerns. Employees have
been notified of the anonymous hotline and in
addition can contact KYOCERA Corporate Audit and
Supervisory Board.
• All KSLD employees are required to complete
the training and to review and acknowledge the
applicable employee policy documents.
• The training is required every 2 years and
monitored and documented by KSLDs Training
Matrix.
Training conducted
through Everfi Learning
Management System
trainings include:
• Ethics & Code of Conduct
• Suppliers and Human Trafficking
• Conflicts of Interest
• Foreign Corrupt Practices Act
• Anti-Corruption & Bribery
Policy trainings include:
• Ethics and Code of Conduct Policy
• Anti-Harassment
• Employee Handbook
CSR ANNUAL REPORT FY 2023
KYOCERA SLD LASER, INC.
CONFIDENTIAL AND PROPRIETARY

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Social Contribution Initiatives
• Employees receive paid volunteer time off (16 hours)
• Donations to local food banks were made during the holiday season
• First Annual Corporate Volunteer Day was implemented
• Met with Local Congress and City, County Leadership to discuss
workforce development opportunities
CSR ANNUAL REPORT FY 2023
KYOCERA SLD LASER, INC.
CONFIDENTIAL AND PROPRIETARY

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Social Contribution Initiatives
Volunteer at local food banks: 17 employee volunteers packed
up fresh produce and snack bags for over 500 families in the
cities of Fremont, Newark, Union City and Santa Barbara County
Tri-City Volunteer Food Bank (Fremont) Foodbank of Santa
Barbara, Santa Barbara County (Goleta)
Donated flashlights to Freemont Fire Station #11
Annual donation to TOYS FOR TOTS
External mentorship for community members
• Clean room training program
• KSLD Employee Diversity Initiative
• Networking with local Universities to target diverse
candidates for open opportunities
CSR ANNUAL REPORT FY 2023
KYOCERA SLD LASER, INC.
CONFIDENTIAL AND PROPRIETARY

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Product Quality and Safety
Kyocera SLD Laser is active by following the most common
international quality standards for product quality & safety.
We are able through very creative development and
manufacturing techniques to design products with very low
Laser safety Classes. Kyocera SLD Laser is striving for the
safest device and systems using our laser diodes. The whole
company considers the well-being of all internal and external
stakeholders in each, and every decision. All teams collaborating
on synergies of complementary technologies between different
Kyocera groups to enhance the stakeholder value.
CSR ANNUAL REPORT FY 2023
KYOCERA SLD LASER, INC.
CONFIDENTIAL AND PROPRIETARY

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Product Impact
Safety
Our LaserLight technology outshines the
limits of conventional LED to deliver safe,
high luminance white light from an incredibly
small point source. Our products improve the
visibility/safety for the one who wants to see
and for the one who wants to be seen.
CSR ANNUAL REPORT FY 2023
KYOCERA SLD LASER, INC.
CONFIDENTIAL AND PROPRIETARY

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Product Impact
Public Safety
Donation of LaserLight flashlights
completed to Harbormasters at Port
Hueneme. The Harbormaster reports
everyday use to inspect and inventory
all containers, ropes from ship to
shore, perimeter and security. The
harbormaster noted the flashlights are
“brighter, whiter, and sharper.”
BRIGHTER.
WHITER.
SHARPER.
CSR ANNUAL REPORT FY 2023
KYOCERA SLD LASER, INC.
CONFIDENTIAL AND PROPRIETARY

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Environmental
• Initiated ISO 14001 certification
process with estimated
certification date of June 2023
• Added policies with emphasis on
setting metrics for sustainability
priorities. Including GHG
emission reductions, and energy
conservation
Recycling Activities
• Segregation efforts for plastic, metal,
paper and compostable waste
• Reduction of Industrial Waste by recycling
E-waste/IP
• Collection of Universal Waste like bulbs,
batteries
• Precious metal reclaim
Hazardous Substances
• List of banned/restricted chemicals
in place
• New Hazardous Substance Approval form
in place for any chemical being brought
on-site and goes through vetting process
• Compliance with laws and regulations for
different monitoring reports as required
by State and Federal laws
CSR ANNUAL REPORT FY 2023
KYOCERA SLD LASER, INC.
CONFIDENTIAL AND PROPRIETARY

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Environmental
Product Energy Efficiency
Preventing Environmental Pollution
and Measures to Fight Climate
Change and Carbon Footprint
• Participate in The Bay Area Commuter
Benefits Program, a partnership of the
Metropolitan Transportation Commission
and the Bay Area Air Quality Management
District.
• Added Commuter Benefits pre-tax benefits
program to employees’ personal benefits
package
• EV charging stations for employee’s
vehicles
• Policy allowing telework
• Supports biking to work by providing bicycle
storage and on-site showers
• Paper reduction measures utilizing electronic
signatures
• Recycling containers at every work-station
• Composting service at Fremont office
CSR ANNUAL REPORT FY 2023
KYOCERA SLD LASER, INC.
CONFIDENTIAL AND PROPRIETARY

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Sustainability Priorities
Harmonious coexistence is the underlying foundation of all our
business activities as we work to create a world of prosperity
and peace.
ENVIRONMENTAL
• Water Conservation and Recycling
• Preventing Environmental Pollution
• Product Energy Efficiency
SOCIAL CITIZENSHIP
• Employee Health, Safety and Fitness
• Social Contribution Initiatives
• Employee Diversity and Engagement
“To coexist harmoniously
with our society, our global
community and nature.
- Kazuo Inamori
GOVERNANCE
• Corporate Oversight
• Information Security
• Protection of Intellectual Property
CSR ANNUAL REPORT FY 2023
KYOCERA SLD LASER, INC.
CONFIDENTIAL AND PROPRIETARY

485 Pine Avenue
Goleta, CA 93117
805-696-6999
KYOCERA-SLDLaser.com