The Group seeks to help society develop sustainably through the implementation of its Code of Conduct. We consider ESG as one of the most important management tasks to provide these contributions, and as such, we have established an organizational structure to address materialities on a Group-wide basis.
Materialities are important social issues that the Group must take priority steps to address in order to realize our 2040 Long-Term Vision. As a result of reviews in fiscal 2020 given social issues faced worldwide, as well as given the goals set in the SDGs and the Group’s business environment, we have identified six materialities and set KPIs for each. The ESG Committee has been in charge of administrating this system, measuring and assessing levels of achievement for these KPIs. For fiscal 2021 and fiscal 2020, we have continued to operate under the same KPIs. Please see the flowchart to the under for information regarding how we have established our current materialities.
| Materialities | Initiatives | Fiscal 2020 KPIs | Related SDGs | |
|---|---|---|---|---|
| E | Contributing to Environmental Conservation |
|
Total in-house CO₂ emissions: Promoting initiatives to achieve net zero CO₂ emissions in fiscal 2050 and 50% reduction in fiscal 2040 (vs. fiscal 2018)* |
|
| Increase Percentage of Recycled Raw Materials: expand the breadth of recycled materials to be treated | ||||
| Landfill disposal rate (less than 1% in fiscal 2020) | ||||
| S | Provide Advanced Materials That Support Lives and Lifestyles |
|
Develop advanced materials needed by the IoT/AI society |
|
| Build a framework to support technology-based management | ||||
| Create Attractive Workplaces |
|
Reduce serious occupational accidents: Less than 0.7 accidents (four days or more of lost work time) per 1,000 workers in fiscal 2020 |
|
|
| Increase annual leave utilization rate: 80% or more in fiscal 2020 | ||||
| Implement initiatives to revitalize people and organizations | ||||
| Initiatives for health promotion: cancer screenings for 70% of employees or more in fiscal 2020 | ||||
| Maintain and improve hiring rate for disabled persons: 2.3% or more in fiscal 2020 | ||||
| Respect Human Rights |
|
Percentage of employees taking human rights training (100% in fiscal 2020) |
|
|
| Conduct survey of human rights in supply chains | ||||
| Coexistence and Co-Prosperity With Local Communities |
|
Continue dialogue with local communities |
|
|
| G | Strengthen Governance |
|
Steady operation of group-wide risk management | ー |
| Compliance training tailored to business characteristics and social movements, etc. |
* We revised the long-term targets in fiscal 2021, moving our 50% reduction target forward to fiscal 2030.
Though the Group has taken a variety of actions over the years toward social contribution and environmental conservation, it has become necessary to strengthen organizational response to global ESG trends and take actions toward ESG management from a Group-wide perspective. Therefore, in October 2020, we established the ESG Promotion Department to oversee ESG initiatives, and created related committees to assist.
The ESG Committee serves as an advisory body to the president, and is responsible for basic policies and activity plans related to ESG initiatives, as well as monitoring of these initiatives. The ESG Committee is chaired by the president of the Company, with members from the Executive Council. This committee meets twice a year in principle.
• Establishment of priority ESG issues
(1) Addressing climate change
(2) Contributing to a recycling-oriented society
(3) Complying with international norms and initiatives
• Reporting activity policies and statuses per priority issue
In order to promote the penetration of ESG management, we use the Group’s Intranet and internal newsletters for messaging on ESG information, and we hold internal training and e-learning programs to deepen understanding about the importance of ESG management and the Company’s activities.
In addition, we distribute the Sustainability Report each year and conduct questionnaires available via paper form and online to survey employees about penetration of ESG and CSR mindsets and status of their involvement with practicing ESG and CSR. In fiscal 2020, 5,307 people of 6,034 eligible employees responded to the survey, a response rate of 88%.
Yes 96.4%
No 2.1%
No answer 1.5%
Yes 78%
No 21.1%
No answer 0.9%
Yes 82.6%
No 16.5%
No answer 1.0%
* Respondents have five options for answering questions, with affirmative answers categorized as “Yes” and negative answers as “No.”
