Sustainability | TDK Group’s Sustainability | Key CSR Issues (Materiality)Risks, Opportunities, Goals, and Achievements

Risks, Opportunities, Goals, and Achievements Relating to Key CSR Issues (Materiality)

At the TDK Group, we have considered the social issues and business environments against the backdrop of the key CSR issues (materiality) and examined and sorted the risks and opportunities. We would also like to report on the progress of our activities relating to the key CSR issues (materiality) in the form of goals and achievements.

  • ◆Risks and opportunities

    These refer to opportunities that are created by addressing key CSR issues (materiality) relevant to SDGs and risks that are presented by not engaging in the efforts.

  • ◆Key themes

    Each year, we review key themes based on social trends at the time of formulating a business plan and make a decision after obtaining approval in the Executive Committee.

  • ◆Goals

    The head supervising department takes the initiative and sets goals aligned with each of our Group Companies.

Contribute to the World through Technology

  • SDGs 3.すべての人に健康と福祉を
  • SDGs 7.エネルギーをみんなに そしてクリーンに
  • SDGs 9.産業と技術革新の基盤を作ろう
  • SDGs 11.住み続けられるまちづくりを
  • SDGs 12.つくる責任 使う責任
  • SDGs 13.気候変動に具体的な対策を
◆Risks ◆Opportunities
  • Loss of sales opportunities
  • Deterioration of technical capabilities
  • Inhibition of growth of Group Companies
  • Loss of trust from customers
  • Improvement of technical capabilities
  • Technical innovations by collaborating with customers
  • Contribution to solving social issues
  • Growth of Group Companies
  • Quality improvement in response to market changes
  • Improvement in credibility with customers and society

◆Key theme 1: Addressing Social Issues by Developing New Kinds of Products the World Has Not Yet Seen

Main initiative items Functions
  • Strengthening of basic technology
  • Promotion of technical developments that are conscious of Kotozukuri (integrated solutions)
  • Promotion of product development and sales of First to Market products
  • Technology Headquarters
  • Each Business Group
◆Goals of FY2019 ◆Achievements in FY2019
To carry out activities that aim to open up new business opportunities through technologies and products in different business groups in connection with the SDGs In addition to promoting the SDG concepts to each Business Group, we came up with medium-term business opportunities from a social issue perspective and included them in the business plan.
To formulate decision-making processes and procedures that incorporate the viewpoint of sustainability We incorporated them into the process of forming the business plan.
◆Goals of FY2020
To achieve the set goals of each Business Group
To identify business areas and product fields that the TDK Group should aim toward in the medium to long term from a social issue perspective.

◆Key theme 2: Pursue Zero-defect Product Quality

Main initiative items Functions
  • Construction of source control-type quality assurance system
  • Manufacturing process innovation using IT and robots
  • Continuous improvement of quality management
  • Human resource development on a global scale
  • Quality assurance function
  • Each Business Group
◆Goals of FY2019 ◆Achievements in FY2019
To promote continued TDK quality education to employees - Update education content to the FY2019 version
- Implement FY2019 version quality education
◆Goals of FY2020
To promote globalization of quality education content

Develop Human Resources

  • SDGs 5.ジェンダー平等を実現にしょう
  • SDGs 8.働き街も経済成長も
◆Risks ◆Opportunities
  • Lack of human resources, lack of ability (bearer), loss of human resources, decrease in productivity
  • Reduced growth
  • Activation of personnel exchange among Group Companies
  • Sources of new creativity and growth
  • Development into a truly global company

◆Key theme 1: Develop Global Human Resources

Main initiative items Functions
  • Expansion in range of collection and grasping of information on human resources
  • Introduction of global selection education
  • Establishment of mechanism for fostering true global leaders
  • Human Resource Development function
◆Goals of FY2019 ◆Achievements in FY2019
To continue Global Management Development Training (TCDP) Successful completion of Territorial Career Development Program (TCDP) in the four territories—Asia, Americas, Greater China, Europe (~100 persons participate)
To introduce newly Global Management Development Training (Advanced Management Program AMP) Alignment between Global and Local development measures in selective regions
To enhance English training program English test globally rolled out and global English trainings introduced
◆Goals of FY2020
To continue Global Management Development Training (TCDP)
To continue newly Global Advanced Management Program (Global AMP)
To introduce Global Executive Management Program (GEMP)
To enhance English training program

◆Key theme 2: Cultivate a Corporate Culture that Respects Diversity

Main initiative items Functions
  • Consideration of expansion and improvement of accuracy of attribute information of human resources to be collected by the consolidated management database in order to link to measures
  • Promotion on the understanding of various cultures through the implementation of corporate human resource meetings globally and by area
  • Promotion of maintenance and improved workplace environments that are easy to work in for diverse employees in each region
  • Human Resource Development function
◆Goals of FY2019 ◆Achievements in FY2019
To continue expansion of scope for talent management system. Talent management system extended to the Sales function worldwide and TDK Top Key Positions
To establish a diversity policy. Established a diversity policy in April 2020
To enforce the establishment of a Human Resources network through further organisation of Global and Territorial Human Resources Meetings. -Global Human resources meetings with participation of all major legal entities took place in May 2018 and July 2019
-Territorial HR meetings with participation of local HR managers launched at all territories starting in 2018
To start succession planning for identified Top Key Positions at the TDK Group. Succession Planning for Top Key Positions being implemented
◆Goals of FY2020
To continue expansion of scope for talent management system
To enforce the establishment of a Human Resources network through further organisation of Global and Territorial Human Resources Meetings
To further conduct succession planning for identified Top Key Positions at the TDK Group.

Consider the Societal and Environmental Impact of the Supply Chain

  • SDGs 8.働き街も経済成長も
  • SDGs 12.つくる責任 つかう責任
  • SDGs 16.平和と公正をすべての人に
◆Risks ◆Opportunities
  • Occurrence of serious human rights violations in bases within Asian regions that we operate in as a Group
  • Occurrence of serious human rights violations and environmental pollution in bases within Asian regions of the Group’s suppliers
  • Participation in conflicts at mining sites, serious human rights violations, and environmental destruction through the purchase of metal materials and metal-containing parts
  • Risk reduction in Group Companies
  • Continuation of transactions with customers
  • Promotion of alternative material development

◆Key theme 1: Consider the Work Environment at Manufacturing Sites

Main initiative items Functions
  • Implementation of CRS self-checks and risk assessments in all production sites
  • Improvement of activity levels through CSR audits by customers and voluntary CSR audits
  • Continuous improvement of knowledge and ability through internal auditor training
  • CSR function
◆Goals of FY2019 ◆Achievements in FY2019
To perform 100% CSR self-checks at manufacturing sites Achieved 100% implementation
To perform 100% labor and ethics risk assessment at manufacturing sites Achieved 100% implementation
To secure 100% opportunities for third-party CSR audits once every two years (High-risk countries of Asia including China) Achieved 100% implementation (high-risk countries in Asia, including China)
◆Goals of FY2020
To achieve 100% implementation of CSR self-checks in production sites (TDK Group production sites)
To achieve 100% implementation of labor, human rights, and ethics risk assessments in production sites (TDK Group production sites)
To ensure audit opportunities once every two years by a third party (high-risk countries in Asia, including China)
To continually implement CSR training
To implement internal audits on workers’rights and corporate ethics by internal auditors

◆Key theme 2: Consider the Work Environment of Suppliers

Main initiative items Functions
  • Promotion of global understanding of CSR procurement
  • Improvement of management level of CSR procurement
  • Construction of a system to understand the CSR efforts of outsourced suppliers
  • Procurement function
  • Each Business Group
  • Human Resource Development function
◆Goals of FY2019 ◆Achievements in FY2019
CSR-compliant supplier ratio: over 95% CSR-compliant supplier ratio: 96.1%
To perform 100% CSR self-checks at sub-contractors and conduct CSR audits once every two years at major sub-contractor upon whom TDK has high dependence in China -CSR self-checks at sub-contractors: 99.1%
-Conducted CSR audits at 3 sub-contractors upon whom TDK has high dependence in China
To perform 100% CSR self-checks at dispatch companies used by manufacturing sites in high-risk countries of Asia including China Achieved 100% implementation
◆Goals of FY2020
To achieve CSR compliant supplier rate of 97%
To achieve 100% implementation of CSR self-checks at outsourced suppliers
To achieve 100% implementation of CSR self-checks at temporary staffing agencies

Key theme 3: Responsible Sourcing of Minerals

Main initiative items Functions
  • Improvement of supplier ratio confirmed to be DRC Conflict-free
  • Continuous participation and collaboration with industrial organizations and related organizations
  • Procurement function
  • Quality assurance function
◆Goals of FY2019 ◆Achievements in FY2019
To confirm DRC conflict-free supplier ratio: over 92% Confirmed 93.1% of suppliers are DRC Conflict-free
To monitor the number of customer responses Implemented monitoring
◆Goals of FY2020
To achieve a DRC Conflict-free supplier ratio of 92% or more
To monitor the number of customer responses

Develop and Prosper in Harmony with the Global Environment

  • SDGs 12.つくる責任 つかう責任
  • SDGs 13.気候変動に具体的な対策を
◆Risks ◆Opportunities
  • Creation of environmental impact at the Group’s production sites
  • Creation of environmental impact through value chains
  • Contribution to reducing environmental impact through product supply
  • Response to and mitigation of climate change through business activities
  • Improved evaluations of product contributions

◆Key theme 1: Reduce Environmental Load throughout Life Cycle Stages

Main initiative items Functions
  • Understanding of the environmental impact in each stage from the life cycle perspective
  • Establishment of CO2 conversion methods for each environmental load
  • Implementation of environmental load reduction activities in each stage of the life cycle
  • Safety and Environment function
◆Goals of FY2019 ◆Achievements in FY2019
Refer to the achievements in FY2019 from the TDK Environment, Health and Safety Action 2025 Refer to the achievements in FY2019 from the TDK Environment, Health and Safety Action 2025
◆Goals of FY2020
Refer to the action plan from the TDK Environment, Health and Safety Action 2025

Key theme 2: Creating a Framework for Gauging Product Contributions

Main initiative items Functions
  • Development and establishment of industry standards
  • Awareness-raising activities for the established standards
  • Safety and Environment function
◆Goals of FY2019 ◆Achievements in FY2019
To continue activities in conjunction with industry groups and continue promotion of efforts to calculate internally Continued activities in collaboration with industrial organizations and promoted the spread of in-house calculation work
◆Goals of FY2020
To continue activities in collaboration with industrial organizations and continue promotion of the spread of in-house calculation work

Recommendations

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