[Feature: Corporate Sociality in the SDGs Era] Gotaro Asakura: SDGs Promoted by a Long-established Dyeing Factory

Our company is a dyeing and finishing factory founded in 1892 (Meiji 25) in Kiryu City, Gunma Prefecture, about 130 years ago. The local Kiryu City is known as "Nishijin in the West, Kiryu in the East," and celebrated its "300th Anniversary as a Textile City" a few years ago. It is a city that has flourished in the textile industry since ancient times. Our company also started with the processing of local Kiryu silk fabrics. Our roots lie in a rice milling business that used a waterwheel from the agricultural canal flowing through the premises, which then transitioned into a "finishing business" using that power to beat silk fabrics to create a luster.

At that time, the fabric woven in Kiryu was exported to Europe and the United States as a major export product of our country. Reflecting the prosperity of that era, more than 200 saw-toothed roof factories still remain in the city today. Subsequently, our company expanded into the dyeing business to color fabrics, operating under a two-company system: Asakura Orimono Seiri Gomei Kaisha and Senpu Kogyo Co., Ltd. However, due to World War II, employees were sent to the battlefield. The two companies merged, and the site of the Senpu factory was requisitioned by the government.

After the war, we shifted from the dyeing and finishing of natural fiber fabrics such as silk, wool, and cotton to the dyeing and finishing of synthetic fibers like rayon, nylon, and eventually polyester. Furthermore, in the 1970s, we shifted production from weaving to the processing of synthetic knits blended with elastic polyurethane. To avoid the wave of overseas production relocation of fabric processing to places like Taiwan and Thailand, we pivoted our business toward niche stretch knit processing ahead of our competitors. In 2001, we began inkjet printing using design data instead of printing plates—which was rare at the time—always venturing into niche business fields using cutting-edge processing technology to differentiate ourselves from competitors.

Currently, we perform dyeing and processing centered on synthetic knits, producing materials for competitive swimwear used by Olympic athletes, golf wear, and industrial materials. Our company excels not only in dyeing fabrics but also in applying high-level value-added processing such as water repellency, water absorption, and antibacterial/deodorizing properties. In particular, regarding water-repellent processing, we have applied strong water repellency to competitive swimwear fabrics since the 1990s, contributing to weight reduction and minimization of water resistance. We have quietly supported domestic athletes wearing swimwear made from our processed fabrics as they won numerous medals at world competitions such as the Olympics.

In our core business of dyeing and processing, fabrics are dyed by boiling them in high-temperature water (100–130°C), and the fabric is washed and dried in the pre- and post-dyeing processes. This requires the use of large amounts of fuel, electricity, and water resources, and it is our destiny that we must impact the natural environment to carry out our business. Therefore, we have established our corporate philosophy as "striving for environmental conservation and effective use of resources," seeking harmony with the environment. While what a small to medium-sized enterprise like ours can do in the dyeing industry with limited business capital is very restricted, I will introduce the energy-saving efforts we have undertaken over a long period.

• Construction of an underground hot water pit: Reusing medium-temperature water (approx. 40°C) used in heat exchangers for raising and lowering the temperature of dyeing machines → approx. 6% fuel reduction

• Fuel change (heavy oil → natural gas) → 30% reduction in CO2

• Elimination of accumulator (high-temperature steam tank) → 3.5% reduction in gas usage

• Reuse of steam condensate (for boiler water and processing water) → 7.7% reduction in gas usage

• Thorough thermal insulation (valves for dyeing machines/steam piping, boiler valves, etc.) → 1% reduction in gas usage

• Adoption of high-efficiency boilers and special pressure-reducing valves → 5% reduction in gas usage

• Introduction of inverters to blower fans of drying equipment (power reduction) → approx. 10% reduction in power usage

• Switching factory lighting to LED → 1% reduction in power usage

• Change to high-efficiency small motors

• Consolidation of compressors within the factory

These various measures have been implemented intermittently over more than 20 years. The effect has been a reduction in total fuel usage by more than 20%, and for electricity usage, we were able to reduce the contracted power from a maximum of 920 kWh to 590 kWh, a reduction of more than 35%. As a secondary effect, the production site, which used to be a "scorching hell," saw its room temperature drop by several degrees due to energy saving and insulation.

Furthermore, in 2018, we staked the company's future on changing factory wastewater treatment (2,000 tons per day) from public sewerage to in-house treatment. We cleared strict environmental standards and implemented our own wastewater treatment, allowing us to discharge directly into agricultural canals. As a result, residents downstream who raise fireflies can still see them lighting up beautifully in the summer, just as before. Additionally, we use microorganisms for biochemical treatment when purifying wastewater, and the approximately 1.5 tons of sludge generated daily is ultimately reused as agricultural fertilizer.

In the past, long working hours and low wages were common in the Japanese manufacturing industry. Our company was no exception; before the high-growth period, we operated with a 12-hour two-shift system, worked half-days on Saturdays, and forced long hours for the lowest possible wages. Employees who could no longer endure this formed a labor union in 1970, the year I was born, and began repeated tough collective bargaining sessions every raise and bonus season. In my childhood, the image of my grandfather, the president at the time, and my father, the negotiator, exhausted from bargaining sessions that lasted until midnight, left a strong impression on me.

To move away from such unproductive confrontations with employees and toward labor-management trust and employee participation in management, my father, Yasushi Asakura (1967 graduate of the Keio University Faculty of Law, President from 1987 to 2007), launched numerous measures immediately after becoming president to build a "comfortable workplace." The main measures taken by the previous generation are as follows:

• Abolition of time cards: Putting the stance of trusting employees at the forefront, managing attendance via an attendance register.

• Establishment of an equal pay system for men and women (ahead of the Equal Employment Opportunity Act).

• Implementation of post-retirement re-employment since 2001, ahead of legislation (guaranteeing employment until full pension eligibility).

• 116 annual holidays despite being a small factory (increasing labor reproduction and production efficiency).

• Abolition of the daily-rate monthly salary system and establishment of long-term sick leave (up to one year) to create a workplace where people can work with peace of mind.

• Introduction of a retirement allowance system comparable to large corporations and the introduction of a 401K system to maintain it.

While this was backed by an era of stable management during the bubble economy, in today's zero-growth era, some things like the retirement allowance system have become a heavy management burden. However, it has been worth it; currently, the average length of service for employees exceeds 20 years. In 1998, the average length of service for women was about 7 years, but now the length of service for women (average 21.4 years) exceeds that of men (average 20.3 years).

Furthermore, following the policies of the previous president, I have implemented the following measures since taking over:

• Introduction of a new wage system that evaluates "hardworking employees" rather than seniority-based wages.

• Early implementation of nursing care leave and childcare leave (applicable to both men and women; childcare leave up to age 3. Short-time and flex systems available until elementary school entry. Also, the establishment of two days of special leave for the birth of a spouse's child).

• Enabling the acquisition of paid leave on an hourly basis.

Through this series of measures, female employees who have built careers at our company have begun to use extended childcare leave, and resignations due to childbirth have plummeted. After childcare leave, they return to their original workplaces, utilizing their careers as they are; the current return rate is 100%. A culture has taken root where surrounding employees cooperate pleasantly because taking childcare leave is a "mutual" thing. Currently, 37 women are working here, with female leaders active in various workplaces, and a female executive was appointed last year. These measures were recognized by the Ministry of Health, Labour and Welfare (MHLW), receiving the 2015 MHLW Minister's Award for Career Support Enterprises, and in 2017, we were certified as a three-star "Eruboshi" (the highest rank at the time) under the Act on Promotion of Women's Participation and Advancement in the Workplace (the first in the prefecture and 8th among SMEs nationwide).

As a local small to medium-sized enterprise, we cannot provide high salaries or modern offices like large corporations. If that is the case, how can we ensure our employees continue to work happily in a "comfortable workplace"? We are tackling this as the most important point of our labor policy. In particular, to increase employee motivation and aim for a transparent workplace, we conduct sincere personnel interviews during the thrice-yearly salary increase and bonus evaluations, literally spending over 40 minutes per person to communicate the expectations and guidance of the evaluator and the thoughts of the evaluatee.

Additionally, as part of the education for our precious employees, we use ISO to conduct operational audits of departments other than one's own (about half of the employees have obtained internal auditor qualifications) and conduct employee education that translates the company's management policies and each section's policies into individual employee tasks, striving to level up our staff. In today's world where dual-income households are the norm, I believe that by creating a workplace where people can work with peace of mind while raising children or caring for family members, we have been able to achieve an average length of service exceeding 20 years even in an era of high turnover.

The dyeing factory business is a "commission processing" industry. Major yarn manufacturers and trading companies handle all the arrangements for "yarn" and "weaving/knitting" according to the needs of apparel brands, and our business model is simply to "process according to the specified order details" from those manufacturers and trading companies. It is certainly easy and efficient because we can obtain orders without having to understand market needs ourselves or engage in sales to develop markets. On the other hand, it is difficult to grasp end-user needs and market information, and because we are subcontractors, we have no price-setting power. Consequently, while it was very efficient during the era of expanded reproduction, we have continued to suffer from the relocation of production overseas, excessive price competition, and a decrease in order volume that intensified after the collapse of the bubble economy.

Therefore, we also started a "direct sales" business to find customers and sell fabrics ourselves, but it was extremely difficult for our company, which has weak sales capabilities, to sell featureless fabrics that could not be differentiated from others. Because of this, we re-evaluated our strengths and differentiating technologies. We identified these as inkjet printing using digital technology—which was rare in the industry at the time—and the "water-repellent technology" used in Olympic competitions. We decided to combine these technologies to develop and start selling the water-repellent furoshiki "Nagare."

As a result, the water-repellent furoshiki, which maintains its water-repellent function even after 100 washes and can even carry water, became a hot topic in various media and a popular product.

Furoshiki is a wrapping cloth that has been used in our country for over a thousand years, but in addition to wrapping things, it can be used in multiple ways, such as hanging, spreading, or easily tying into a bag. By adding a powerful water-repellent function to this convenient furoshiki, we made new uses possible, such as wrapping wet items or protecting one's body or precious bags from rain. The material is the usual soft fabric used for blouses and the like; even after water-repellent processing, the texture of the fabric remains. While it can carry as much as 10 liters of water, the weave of the fabric remains intact, so it can also be used as a shower if squeezed.

The designs of the furoshiki are not just traditional "Japanese patterns" but include about 60 varieties ranging from modern designs to slightly pop styles to match contemporary fashion. We have received high praise particularly from women; rather than using them as "furoshiki" in the traditional sense, many seem to use them as eco-bags or town bags by tying them, or as fashion accessories. Furthermore, in today's world where natural disasters occur frequently, they are well-received as disaster prevention supplies, and we receive orders for disaster prevention furoshiki from the Tokyo Metropolitan Government and private companies. Additionally, they are popular as OEM furoshiki with original customer designs for corporate anniversary gifts and various novelties, and we accommodate small lots.

Furthermore, due to its convenience and functionality, it received the Small and Medium Enterprise Agency Director-General's Award at the 2011 Good Design Awards. In 2021, we achieved a Guinness World Records title in a time trial by having 100 people carry 100 liters of water over 100 meters using buckets made from furoshiki.

Our company is also developing and releasing various daily necessities utilizing our "water-repellent technology." Specifically, these include arm covers that protect from "wetness" during washing or gardening, highly breathable raincoats, and the stylish town bag "AZUMA," all of which are products that make daily life more comfortable and convenient.

The products we develop and release are centered on functional items that leverage our strengths like "water repellency," but all are domestic products that can be used with peace of mind and are also products aimed at breaking away from disposable culture. To begin with, our "water-repellent technology" started in the early 1980s with the development of diaper covers to protect babies' bottoms from "stuffiness." Diapers at the time consisted of an "oshime" (cloth diaper) that absorbed waste placed inside a diaper cover made of vinyl or rubber, which caused the baby's bottom to become stuffy and develop a rash. Our water-repellent diaper cover, which was breathable and did not leak waste to the outside, was immediately accepted by mothers of that time and came to occupy more than half of the market.

These were replaced within a few years by disposable diapers that came from America, but subsequently, our water-repellent technology came to be used for processing competitive swimwear fabrics used in the Olympics. Additionally, our water-repellent furoshiki "Nagare," which uses that technology, had often been used as a furoshiki bag, but this trend intensified when the charging for plastic shopping bags began in 2020, and the simple-shaped furoshiki is also active as an eco-bag. To save the trouble of tying a furoshiki into a bag, our company developed and released the town bag "AZUMA," derived from furoshiki, this year. Also, during the COVID-19 pandemic, we developed functional masks such as the "AG Shield Cool," a cool mask that is comfortable even on hot days and has antibacterial effects using silver ions, which have been very well received.

On the other hand, fabric products can be washed and used repeatedly, possessing the characteristic of being very environmentally friendly. Furthermore, we are currently proceeding with the development of processing for recycled polyester and nylon, advancing even more eco-friendly technological developments. In the future, we will continue to develop functional products by adding various additional functions, starting with our specialty of water repellency, to fabrics, and strive to create convenient products that allow consumers to lead richer and more comfortable lives.