Sustainability | Sustainability ManagementSustainability Promotion Structure
Governance
The TDKGroup has established the "Sustainability Committee," chaired by Corporate Officer General Manager, Corporate Strategy HQ, with the aim of synchronizing TDK’sown sustainability (improvement of long-term corporate value) with social sustainability through the TDK Group's business activities. In principle, the Sustainability Committee meets four times a year to deliberate on (i) corporate-wide material issues (materiality) and related risks and opportunities, (ii) responses to sustainability-related regulations, and (iii) other significant ESG-related themes, while also providing necessary support for the promotion of initiatives. The activities and issues discussed by the Sustainability Committee are reported to the Management Committee and the Board of Directors. The Management Committee manages the status of business execution by deliberating on these reports. Furthermore, the Board of Directors supervises the execution of duties by management through the reports and deliberations of the Sustainability Committee.
(Key Agenda Items of the Sustainability Committee for Fiscal 2026)
| Number of Meetings | Agenda Items |
|---|---|
| 4 times a year |
|
(Disclosure of Remuneration)
For Directors concurrently serving as Executive Officers and other Executive Officers, the Company has established Performance Share Units (PSU) as a type of performance-linked, post-delivery share-based remuneration. Under this plan, shares of the Company’s common stock and cash are delivered after the end of the evaluation period, with the amount calculated based on the degree of achievement of performance targets set in the Medium-Term Management Plan. Indicators related to climate change and human capital are included as non-financial metrics within the evaluation indicators.
Risk Management
In aiming for sustainable growth, the TDK Group promotes company-wide measures against factors (risks) that hinder the achievement of organizational goals and implements company-wide risk management (ERM) activities to appropriately manage them and ERM Committee is established in which the chair person is appointed by President and CEO from directors. In ERM Committee, we promote company-wide risk in a way we analyze and evaluate company-wide risk, identify risks which require countermeasures and decide a responsible function to be in charge of risks. As for each risk, the responsible function takes the lead in countermeasures and the progress is monitored in ERM Committee. We discuss the risk analysis evaluations and countermeasure situations at the Executive Committee and report them to the Board of Directors. Risks concerning sustainability, such as risks concerning the environment including climate change, securing personnel and training personnel and human rights are also allocated to risk owner departments and director is assigned for it.Sustainability-related risks and opportunities are deliberated by the Sustainability Committee and reported to the Management Committee and the Board of Directors as necessary.
In-house Awareness Raising
To realize effective promotion of sustainability, the TDK Group believes that it is important for every team member to possess basic knowledge regarding sustainability, for them to understand the background to the need for corporate sustainability initiatives and understand TDK’s approach to sustainability activities, and for them to incorporate this awareness into their own work. Accordingly, we provide lecture-style training programs tailored to meet the needs of each job grade, including initial training for new hires, as well as lectures by external experts, and dissemination of relevant information using the company intranet.
In addition, management and head office divisions engage in timely dialogue with asset managers, and the Sustainability Promotion Group* engages in dialogue with each business group to promote business development that takes the SDGs as the starting point.
In 2025, we held a panel discussion focused on achieving sustainability transformation.
*The Sustainability Promotion Group was renamed the Sustainability Management Group in April 2026. However, this website (updated on July 31, 2026) uses the former name to reflect the reporting period covered.
SUSTAINABILITY AWARD
Each year, TDK’s Sustainability Award recognizes exceptional projects and initiatives that advance the company’s sustainability transformation and create value for both business and society.
Introduced in 2021, it has raised awareness and inspired action by highlighting sustainability as a key driver of TDK’s long-term transformation. The award honors initiatives that address sustainability challenges from diverse perspectives, balancing environmental and social considerations with resilient business development. This includes projects related to climate action, innovative materials & technology, amongst others. These projects are shared across the entire TDK Group to promote best practices and cross-organizational learning.
Participation in Initiatives and Associations
The TDK Group respects international norms and standards, such as the Universal Declaration of Human Rights, ISO 26000, the OECD Guidelines for Multinational Enterprises, the international labor standards of the International Labor Organization (ILO), and the United Nations Guiding Principles on Business and Human Rights (the “Ruggie Framework”), and promotes business with the aim of realizing the common global objectives cited in the SDGs.
Furthermore, in editing and issuing our sustainability website, we refer to the GRI Standards of the Global Reporting Initiative, the international standard.
