Sustainability | Governance | Supply Chain ManagementSocial and Environmental Consideration at Manufacturing Sites
Our Approach
As a supplier, TDK recognizes the importance of fulfilling our social responsibilities by striving for social and environmental considerations at the Group’s manufacturing sites in order to continue our business. We strive to understand issues and make continuous improvements in a three-stage framework comprising self-assessments, audits, and training and dialogue.
Governance
Sustainability Promotion HQ oversees the management of risks and opportunities relating to social and environmental considerations at our manufacturing sites, and this is promoted via the appointment of a person in charge at each regional headquarters. We also report to the Board of Directors twice a year.
Education and Awareness Raising
We conduct e-learning programs on an annual basis for all TDK Group team members (employees). We also implement CSR internal auditor training for personnel in charge of manufacturing sites in Japan, China, and ASEAN, and have stationed personnel capable of conducting CSR internal audits in each region.
Strategy
At TDK, we have established “TDK Transformation” as our new long-term vision for the entire Group, and promote our CSR activities based on this long-term vision. In addition, as a member of the Responsible Business Alliance (RBA), we are rolling out assessments which use the RBA’s global standards to all our manufacturing sites, in our initiatives to address societal challenges.
We carry out activities to enhance CSR management across the Group under a PDCA cycle using the following framework.
(1) Self-assessments and risk assessments
For risk assessments, we conduct annual assessments based on RBA standards for “labor” and “ethics,” with remedial action then instituted for all identified risks. We also promote risk mitigation in human rights and ethics.
We carry out separate risk assessments for health and safety / environment. Link: Safety/Environment.
(2) Audits
For audits, we implement third-party audits, including RBA-authorized audits, at all manufacturing sites over a medium-term three-year period to maintain a predetermined level of CSR management, and are continuously working towards addressing societal challenges.
(3) Education
We implement regular sustainability and CSR internal auditor education, with the number of personnel possessing CSR internal auditor skills increasing each year.
Risk Management
Sustainability Promotion HQ conducts risk assessments at all manufacturing sites for “labor,” “ethics,” “health and safety,” and “environment,” as well as conducting risk assessments of suppliers based on RBA standards in cooperation with the responsible department to promote identifications of, and improvements with regards to, challenges. We implement the PDCA cycle with continuous improvements and mitigate identified risks to the minimum to enhance our CSR management in the supply chain.
Metrics and Targets
Goals and Achievements in Fiscal 2024
| Fiscal 2024 Goal | Achievements |
|---|---|
| Achieve 100% implementation of CSR self-checks at manufacturing sites (TDK Group manufacturing sites) | Achieved 100% implementation |
| Achieve 100% implementation of labor, human rights, and ethics risk assessments at manufacturing sites (TDK Group manufacturing sites) | Achieved 100% implementation |
| Conduct either of RBA-authorized audit, customer CSR audit, or CSR assessment based on the RBA VAP Operations Manual at all our manufacturing sites at least once every three years | Conducted at 100% of sites in the three-year period from fiscal 2022 through fiscal 2024 |
| Conduct training for personnel involved with CSR in Japan and overseas | Conducted CSR internal auditor training in Japan, China, and the ASEAN region |
| Achieve 100% implementation of labor, human rights, and ethics internal audits at targeted manufacturing sites | Achieved 100% implementation at targeted sites |
Evaluations and Future Activities
Starting in fiscal 2022, we launched an initiative to conduct either an RBA-authorized audit, a customer CSR audit, or a CSR assessment based on the RBA VAP Operations Manual at all manufacturing sites at least once every three years, with 100% of sites audited in fiscal 2024, the third year of the audit, resulting in the achievement of the target.
| Fiscal 2025 Goal |
|---|
| Achieve 100% implementation of CSR self-checks at manufacturing sites (TDK Group manufacturing sites) |
| Achieve 100% implementation of labor, human rights, and ethics risk assessments at manufacturing sites (TDK Group manufacturing sites) |
| Conduct either of RBA-authorized audit, customer CSR audit, or CSR assessment based on the RBA VAP Operations Manual at all our manufacturing sites at least once every three years |
| Conduct training for personnel involved with CSR in Japan and overseas |
| Achieve 100% implementation of labor, human rights, and ethics internal audits at targeted manufacturing sites |
Initiatives
Self-assessments
| Frequency | Target site | Content | |
|---|---|---|---|
| CSR self-checks | Every year | All TDK Group manufacturing sites | Personnel at each site respond to a questionnaire on RBA check items (human rights, health and safety, environment, and ethics). Improvement measures are taken at each site based on feedback from the survey results. |
| Labor, human rights, and ethics risk assessments | Every year | All TDK Group manufacturing sites | The check items are updated every year based on social trends. Personnel at each site respond to a questionnaire. Based on the assessment results, improvement plans are developed and implemented. |
CSR Self-Checks
At TDK, we use the Self-Assessment Questionnaire (SAQ) provided by the RBA to conduct annual self-checks regarding labor (human rights), health and safety, the environment, ethics, and management systems at all of our manufacturing sites. The purpose is to get a sense of the current status of CSR activities at manufacturing sites, to identify and address potential issues, and to promptly respond to requests from customers for CSR surveys.
After the staff in charge at each site have answered the questionnaire, the Sustainability Promotion HQ analyzes the responses and provides feedback to those manufacturing sites that need it.
In fiscal 2024, of all the sites where CSR Self-Check was conducted, feedback to improve issues was provided to seven sites at which issues were identified as a result of evaluations.
Labor, Human Rights, and Ethics Risk Assessments
Every year, risks related to labor/corporate ethics are analyzed at all manufacturing sites. In the event that there are any inherent risks, they are corrected after having formulated a plan for improvement and work is performed to mitigate the risks (environment and health and safety assessments are conducted separately). Each site aims for continuous improvement by going through the PDCA cycle.
The items to be checked are updated every year based on social trends and so forth. After the staff in charge at each site have answered the questionnaire, the Sustainability Promotion HQ assesses risks and returns the results of their assessment back to the sites. When inherent risks have been discovered, plans for improvements are formulated and the issues are corrected at each site.
In fiscal 2024, we conducted risk assessments on child labor for all manufacturing sites, using an assessment sheet with the addition of a survey for the prevention of child labor. Remedial measures were taken by the end of the fiscal year at the 21 sites where risks were identified during evaluations.
Audits
| Frequency | Target site | Content | |
|---|---|---|---|
| RBA-authorized audit | Starting fiscal 2022, launched initiative to conduct either an RBA-authorized audit, a customer CSR audit, or a CSR assessment based on the RBA VAP Operations Manual at all manufacturing sites at least once every three years | Priority target sites based on Medium-Term Plan | RBA-authorized audit (VAP, AMA, or CMA) |
| Customer CSR audit | Sites requested by customers | Performed based on customer's audit standards | |
| CSR assessment based on the RBA VAP Operations Manual | Site where no RBA- or customer-based audit has gone in |
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| Internal audit | Annual | Site where high-level management is requested |
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TDK promotes mainly three types of CSR audit: an RBA-authorized audit, a customer CSR audit, and a CSR assessment based on the RBA VAP Operations Manual. By conducting audits based on the standards that customers require and on RBA standards, we have constructed a mechanism to ensure that the levels of labor, health and safety, the environment, ethics, and management systems are maintained at a global standard.
In addition, starting in fiscal 2022, all manufacturing sites are required to conduct either an RBA-authorized audit, a customer CSR audit, or a CSR assessment based on the RBA VAP Operations Manual at least once every three years. In the three-year period to fiscal 2024, at least one of the three audits was implemented at all manufacturing sites on one or more occasions, resulting in 100%-achievement of the target.
Trainings and Dialogues
With a systematic understanding of RBA and customer requirements related to CSR, we provide timely training for quick responses. In fiscal 2024, we held the hybrid-format CSR internal auditor training in Japan, China, and the ASEAN region led by an RBA-authorized company.
