Sustainability | SocialHuman Resources

Our Approach

A sustainable future holds infinite possibilities for the continued prosperity of both humanity and the Earth itself. TDK is constantly striving for self-transformation to contribute to this goal.
Transformation is no longer an option: it is a strategic imperative to thrive in a changing world. Now, global consumers and corporate purchasers consider carbon footprints when making decisions, improvements in energy productivity and digitization drive bottom line results, and company practices must create a positive impact on society and environment.
To capture these opportunities, TDK is advancing its People Strategy, centered on three key material topics: promoting diversity, equity and inclusion driven by inclusive leadership practices; developing organizational capability to enhance innovation and efficiency; and improving team member health and engagement. Together, our team leaders and members create a positive impact through the innovative technologies, products, processes, and solutions we deliver, as well as to the global, regional, and local communities we serve. Through shared responsibility across TDK United, we strive for sustainable transformation through our people and culture.

Governance

To drive our human capital strategy integrally with our corporate strategy, we have established a globally integrated HR governance structure. Our global HR function is an organization directly overseen by the CHRO, who reports directly to the President and CEO, and is responsible to the Board of Directors for formulating and executing the "Human Capital Strategy." As a member of the management team, the CHRO ensures the alignment of corporate strategy and human capital strategy, and provides recommendations from a human capital perspective for management decisions. From a corporate governance perspective, the Board of Directors oversees critical talent-related matters, including succession plans for the next CEO and the management team, and monitors the appropriate utilization of human capital and the status of risk management toward corporate value enhancement.

Furthermore, in collaboration with executive officers and the heads of each business company and headquarters, the CHRO regularly reports and discusses the progress of the human capital strategy and key initiatives at the Executive Committee. In addition, we have deployed HR functions at the global, regional, and local site levels, establishing a cross-functional collaboration system across the entire group. This enables us to deploy human capital strategies and HR measures promptly and consistently in line with business needs.

Strategy

Through global expansion and M&A, our company has broadened its business domains and evolved into a corporate group where diverse talent thrives. While we have steadily expanded our human capital foundation in both quantity and quality, we recognize that we are at a stage requiring further advancement in anticipation of future growth and transformation.

First, the business environment surrounding our company is marked by accelerating technological innovation and the increasing globalization and complexity of business, leading to a heightened speed of change and uncertainty. In such an environment, the importance of human capital capable of autonomously conceptualizing and executing transformation is growing further. Additionally, to ensure a stronger alignment between corporate strategy and human capital strategy and to drive business transformation swiftly and steadily, there is a need to advance the mechanisms that enable individual capabilities to be demonstrated organizationally.

Second, through business growth and global expansion, we have accumulated talent and capabilities with diverse backgrounds and expertise. Furthermore, by integrating external talent through M&A and other means, we have further broadened the diversity of our human capital. While this diversity is a key strength of ours, we recognize there is room to more systematically link individual experiences and knowledge to organizational learning and future talent development. Going forward, it is vital not only to leverage individual strengths as separate points but to elevate them into value creation on a broader scale by organically connecting them.

Third, how we utilize and develop such human capital is closely related to the evolution of our business portfolio and the creation of new growth opportunities. By functioning in unity with strategy, human capital is expected to lead not only to the strengthening of competitiveness in existing businesses but also to the creation of new value.

We view these points not merely as constraints or challenges, but as a critical theme for further enhancing corporate value through the strategic evolution of human capital management. Based on this recognition, we are working on the formulation and execution of a human capital strategy aligned with our corporate strategy.

Risk Management

We recognize risks related to human capital as one of our critical management risks and implement continuous monitoring and improvement. As part of this, human capital-related metrics are reported to the Executive Committee and the Board of Directors, and discussions on improvement measures are held at the Executive Committee. For example, based on the results of our regular engagement surveys, we assess employee awareness and organizational conditions, and the Executive Committee considers and executes necessary improvement measures. Furthermore, by incorporating the results of these surveys into the evaluation metrics for executive compensation, we are increasing management's level of commitment and improving the effectiveness of our improvement measures. We also comprehensively capture human capital risks within the framework of our group-wide sustainability and management risks.

Moreover, priority initiatives of our human capital strategy are regularly evaluated and reviewed in relation to material issues (materiality) and shared across the group to ensure early identification and appropriate responses to risks. Through these efforts, we aim to mitigate risks related to talent retention, development, and securing diversity, thereby achieving sustainable enhancement of corporate value.

Metrics and Targets

Measurements are used at different levels of the company to provide strategic and operational focus:

• Measures for key issues (materiality) are focused on transformation through promoting and cultivating diverse pool of human resources to further enhance competitiveness, including: promoting inclusive leadership practices, organizational capability and efficiency, and improving team member health and engagement.
• Global HR Program measures to drive quality delivery of programs, services, and operations in alignment with business needs.
• Corporate Officer pre-financial measures that focus on improving employee engagement and communication.

Initiatives

Please see the different breakout areas for the following: DE&I, HR Development and Talent Attraction and Retention.