Sustainability | Sustainability Management | TDK Group's MaterialitySummary of Previous Materiality

During the three years from fiscal 2022 to fiscal 2024, we made steady progress toward achieving the medium-term targets set for each topic. As a result, there were no targets that were not achieved, but we are aware that in order to solve global sustainability issues, it will be important for us to set even higher targets and continue to tackle challenges. Starting in fiscal 2025, we will accelerate our efforts even further based on the new materiality.

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Materiality Related SDGs KPI
Fields Themes KPIs Medium-term target*
(Fiscal 2022-2024)		 Progress of Fiscal 2022 Progress of Fiscal 2023 Progress of Fiscal 2024
EX: Contribution to energy and environmental solutions by minimizing waste heat and noise with electronic devices Effective use of energy and expanded use of renewable energy toward the realization of net zero CO2 emissions by 2050
CO2 emission intensity from energy use Reduce by 12% compared with fiscal 2015 Reduced 32% Reduced 30.7% Improved by 38.0% compared with the previous fiscal year
Provide products and solutions to create clean energy and realize a zero-carbon society Research and publish an internal marketing the respected area 1 report / year We researched technology and market trend of xEV market. Findings were published as an internal report and been shared among TDK stake holders. We also started investigating potential TDK technologies to support renewable energy market. We'll continue the studies and will publish an internal comprehensive market report in 2022. We researched technology and market trends of EX such as renewable energy, alternative energy and xEV. Findings were published as an internal report. We researched technology and market trends of EX such as renewable energy, alternative energy and xEV. Findings were published as an internal report.
Find potential opportunity in Renewable Energy market and incubate new business, product or solution in TDK By the end of 2023 We started investigating potential opportunity in Renewable Energy market and continue in 2022. We found potential opportunity of TDK sensors which can contribute to renewable energy. We will move to feasibility study after investigating market volume. We also found TDK technology which can contribute to new technology of xEV and started market research. Evaluation and investigation of new business ideas are currently underway.
Provide products and solutions to realize an energy efficient society by storing, converting, and controlling energy Research and publish an internal marketing the respected area 1 report / year We researched technology trend and potential market for TDK.
We'll continue the studies to other applications in 2022.		 We researched technology and market trend of EX such as energy storage. Findings were published as an internal report. We researched technology and market trends of EX such as energy storage and chargers. Findings were published as an internal report.
Find potential opportunity for Renewable Energy market and incubate new business, product or solution in TDK By the end of 2023 We will continue investigation in 2022. We made market research of energy management system and TAM analysis of TDK products in this area and support strategic decision of business group. Evaluation and investigation of new business ideas are currently underway.
DX: Promotion of the digitalization of society by adding software technology to material science and process technology Provide products and solutions to help build resilient communication network infrastructure
Research and publish an internal marketing the respected area 1 report / year We researched technology and market trend of AR/VR application. Findings were published as an internal report and been shared among TDK stake holders. We conducted research on technology trends and the market in regard to AR/VR/MR and issued an internal report. We held webinars in-house and AR/VR experience sessions, and shared the importance of the metaverse and UX with the relevant parties within TDK.
We also conducted research on technology trends in 6G telecommunications technology and issued an internal report.		 We researched technology and market trends of DX such as XR, the metaverse, gaming, and V2X. Findings were published as an internal report.
Find potential opportunity to support resilient communication network infrastructure and incubate new business, product or solution in TDK By the end of 2023 New product development for AR/VR project were engaged. We'll continue to support AR/VR and expand investigation to other areas in 2022. TDK has come up with technologies that can make a contribution to 6G telecommunications and begun development to verify its feasibility. Multiple other items are in progress. Evaluation and investigation of new business ideas that can support next-generation communications services are currently underway. A joint development program contract was signed.
Provide products and solutions for supporting robotics and mobility to promote the enhancement and complementation of human capabilities Research and publish an internal marketing the respected area 1 report / year We researched technology and market trend of on board high performance computing and robot. Findings were published as an internal report and been shared among TDK stake holders. We conducted research on technology trends and the market related to robotics, including autonomous driving, and issued an internal report. We researched technology and market trends of DX such as robotics and ADAS. Findings were published as an internal report.
Find potential opportunity to provide products and solution for robotics and mobility and incubate new business, product or solution in TDK By the end of 2023 We engaged in potential new business incubation projects, we will continue support in 2022. We have begun a review of a sensor solutions business that include data analysis algorithms tht could be applied to autonomous driving and industrial robotics. Evaluation and investigation of new business ideas are currently underway.
Promote digitalization at TDK Efforts to strengthen the integrated business management process from procurement to delivery, and the seamless infrastructure to visualize supply-chain conditions underpinning that process, so as to improve 2CX and accelerate the practice of ESG/SDGs Realize in pilot product businesses during fiscal 2024 As a first step, implemented work reforms relating to transactions between Group companies To improve efficiency in the value chain activity of our global base, make it possible to visualize at a single glance the status of everything from material purchasing to sales . As a result of the designation of domestic disaster information (earthquakes, heavy rain, tsunamis), and regions (prefectures), the visualization platform that was implemented in the previous term has enabled identification of domestic products and customers whose shipments are likely to be impacted and understanding of related functions.
Speedup of work by introducing a globally common IT platform and strengthening of the training of human resources to use it
  • Complete deployment of a global collaboration platform
  • Foster data analysis human resources
  • Completed deployment of a global collaboration platform to main companies
  • Introduced a training program for the fostering of data analysis human resources
 Realized by promoting citizen development contributions to business through expanding our global collaboration platform and data analytics platform use. Company-wide deployment of the global collaboration platform was completed and high use rates are being maintained.
Training citizen developers who can use the data analysis platform in the ground and drive business transformation was achieved earlier than planned.
Quality Management Pursue zero-defect product quality
Implementation of quality education at all applicable sectors Promote the globalization of quality education utilizing DX Started learning with digitalized educational content Created and deployed online quality education content in collaboration with the global HR function and overseas sites Created and deployed new online quality education content
Management of certification maintenance at all applicable sites (ISO9001) Certification maintenance ratio: 100% 100% 100% 100%
Consideration of the development of systems by utilizing AI
  • Develop a system for detecting signs of equipment failure
  • Consider the development of design screening by AI search
  • Considered elemental technology for indicative detection
  • Introduced an automated monitoring tool by deep learning
  • Developed an automatic failure mode classification system as an elemental technology for indicative detection
  • Investigated introduction of AI into design review and develop prototype
  • Developed an automatic dimming system as elemental technology for predictive detection and deployed an automated failure mode classification tool
  • Introduced and commenced operation of Knowledge Explorer (KE) with existing troubleshooting systems
Reduce quality costs Quality improvement activities for each cause Implement measures for each cause
  • Promoted the visualizationPromoted the visualization of foreign objects through in-process activities to reduce the presence of foreign objects
  • Introduced an analytical tool to counter the fragility of software implemented in products
  • Implemented new quality diagnosis (processes, equipment) by Headquarters functions
  • Issued a manual for small-group activities and promoted them
  • Implemented improvement activities for defects caused by foreign objects
  • Established product security measures mechanism in Iot products (confirmed in design review)
  • Deployed new quality diagnostics (process, equipment) to China by Headquarters functions
  • Horizontally deployed best practices for small-group activities
  • Took measures to reduce in-process defects caused by foreign objects
  • Took measures to share foreign object analysis technology among sites
  • Researched trends concerning international standards and took measures to strengthen product security based on those standards
  • Deployed new quality diagnostics (process, equipment) to ASEAN by Headquarters functions
  • Proactively promoted small-group activities through the use of regional conferences
Maximize customer satisfaction with product and service quality “A rank” in degree of customer satisfaction
*Among the total of supplier evaluations obtained from customers, “A rank” means the ratio of customers expressing satisfaction.		 At least 95% 96.8% 95.0% 95.0%
1. Visualization of supply chain management from a consolidated perspective
  • Production, sales, and inventory (PSI) information by level
  • Business lead time

2. Formation of inventory holding standards based on supply policy and strengthening of management function 		Build new work infrastructure for consolidated supply-demand management in applicable product groups and strengthen visualization of the flow of products and information
Furthermore, redefine work rules and endeavor to entrench delivery/inventory management infrastructure to enable speedy decision making		 1. Increased the accuracy of PSI information in existing infrastructure

2. Completed concept formulation toward the building of consolidated supply-demand management infrastructure 		1. Continued to increase the accuracy of PSI information in existing infrastructure

2. Completed new operation designing and PoC (Proof of Concept) for building consolidated supply-demand management infrastructure 		Transitioned to the introduction phase for the consolidated supply management platform and continued preparations concerning business, data, and systems for operation at pilot sites
(Creation of a multi-level PSI is also planned for PSI information)
HR Management Develop human resources to lead the TDK Group
Number of GEMP (Global Executive Management Program) participants 10-15 participants / cohort linked to 3 year mid-term plan 13 participants 10 participants have been selected for next cohort 10 participants
Number of Global AMP (Global Advanced Management Program) participants 20-25 participants / year 0 (26 candidates' participation in the program was postponed to fiscal 2023 due to inability to meet face-to-face.) 19 participants 25 participants
Number of GMP (Global Management Program) participants 40-50 participants / year 44 participants 44 participants 50 participants
Number of TCDP (Territorial Career Development Program) participants 80-100 participants / year 89 participants 100 participants 126 participants
Foster greater diversity and inclusion Attendance ratio of workshop for managers (Japan) 70%/year 98%/year 97%/year 89%/year
% of female candidates for promoting to manager position (Japan) 4%/year 10.3%/year 8.9%/year 6.2%/year
Female managers ratio (Japan) 3% 3.7% 4.3% 4.6%
Improve employee engagement and job satisfaction to attract and retain talented employees
  • Prepare the concept in fiscal 2022.
  • Roll-out to all applicable TDK group companies in fiscal 2023.
 Prepare the concept in fiscal 2022. Preparation done in fiscal 2022 for the implementation Rolled-out to all applicable TDK group companies in fiscal 2023 ・Formulating action plans based on the results of engagement surveys
・Formulating a global platform for sharing success stories
・Establishing a team member engagement system to foster continuous improvement and organizational culture
Supply Chain Management Enhance global procurement capabilities and mechanisms
Visualization and utilization of supplier information and purchasing data Build a platform to uniformly visualize the TDK Group’s supplier information and purchasing data and utilize it in procurement strategy Visualized supplier data of main subsidiaries Consolidated procurement data of subsidiaries within the group (in progress) Promoted integration of the procurement data of major overseas subsidiaries
Reduction of procurement risks for high-risk parts and materials Conduct supply chain risk analysis and implement countermeasures Identified high-risk parts and materials Promoted risk mitigation of high-risk parts/materials Proposed backup sources for high-risk parts and materials
Conformity with Global Common Regulations 100% Built a monitoring mechanism and began checking the state of establishment of individual rules Confirmed and corrected individual regulations of subsidiaries Created a mechanism for monitoring the status of compliance with Global Common Regulations by subsidiaries
Ensure responsible procurement Ratio of suppliers recognized as procuring the 3TG minerals (tin, tantalum, tungsten, and gold) from RMAP-conformant refineries (RMAP: Responsible Minerals Assurance Process) At least 92%
Disseminate and instill the idea of responsible mineral procurement among suppliers		 92% 86.5% 90.9%
Ensure societal and environmental consideration in the supply chain CSR compliant supplier rate 100% 99% 100% 100%
Implementation rate of CSR self-checks at manufacturing sites 100% 100% 100% 100%
Implementation rate of labor, and ethics risk assessments at manufacturing sites 100% 100% 100% 100%
Ratio of manufacturing sites implementing RBA-authorized audits (RBA: Responsible Business Alliance) 25% 10% 34% 41%
Ratio of manufacturing sites implementing RBA-authorized audits, customer CSR audits, or CSR assessment based on the RBA VAP Operations Manual at least once every three years 100% 24% 65% 100%
Provision of opportunities for training through e-learning or on-site training, including dialogue Implement every year Provided necessary training opportunities globally Provided necessary training opportunities globally Provided necessary training opportunities globally
Opportunity and Risk Management Identify and capture business opportunities effectively by strengthening marketing capability with full use of digital technology
Number of value adding content topics and/or landing pages suitable for inbound marketing Enhance technical writing capability (resources/team/process) and create content and/or landing pages for inbound marketing purposes for TDK group products, solutions & technology globally. Reinforced the content creation capability through strategic recruiments and published value adding content to our stakeholders Achieved an increase in the amount of new content and improvements in quality In addition to existing products, reinforced the creation of content relating to new technologies that will support TDK’s growth in the next 5 to 10 years.
Generation of account and contact level leads Methods, capability & process to generate leads, qualify them and run lead nurturing, while strictly complying with privacy legislation. Operations running for lead generation and nurturing in global and local platforms. Privacy preservation platform evaluation initiated for secure lead sharing with relevent internal stakeholders. Acquired leads in global and local platforms, and conducted nurturing.
Conducted an evaluation of privacy protection platforms for sharing lead information safely with the relevant parties in-house.		 Acquired leads in global and local platforms, and conducted nurturing.
Conducted an evaluation of privacy protection platforms for sharing lead information safely with the relevant parties in-house.
Data type, quality and quantity that can be turned into business intelligence Business intelligence utilising multimodal data analytics. Particular attention will be put on privacy preserving data analytics in order to strictly protect our customer data. Data driven market insight and recommendations will be provided. Initiated evalutation of current status for privacy preserving plaform requirements, and have continued working on customer data platform further development. Conducted an evaluation with regard to requests for the current privacy protection platform. Also continued further development of our customer data platform. Completed initial setup of the customer data platform.
Strengthen the group's risk management capabilities Implementation of risk identification and evaluation and assignment and review of risk supervisory sections Implement every year Identified business-related risks, assigned sections responsible for responding, and checked the frequency and impact of risk outbreaks
Verified the risk response fragility of risk owners		 Reassessed the assignments of the risks response department in proportion to organizational changes, and based on changes in the external environment and the status of risk response at TDK made an assessment of remaining risks.
Evaluated the status of risk response at each risk owner.		 Assigned risk owners to risks that previously had ambiguous ownership.
Evaluated residual risks considering changes in the external environment and our company's risk response status. The results of the risk evaluation were shared with the headquarters departments and business groups that are the risk owners, and risk response measures were incorporated into each department's mid-term and annual plans.
Clarification of climate-change risk scenarios Implement during fiscal 2022 Completed risk scenarios. Disclosed detailed risk scenarios through disclosure in annual securities report and reply to questionnaire of the CDP (www.cdp.net) Disclosed our climate change risk scenario in our securities reports, and presented the details in the form of responses to the CDP questionnaire (https://www.cdp.net/). Disclosed climate change risk scenarios in the securities report, and provided detailed information through responses to the CDP questionnaire (https://www.cdp.net/).
Pursuing Both Delegation of Authority and Internal Controls Ensure speed and transparency in operations, based on the clearly defined roles, authorities and responsibilities of each organization Clarification of criteria for selection of subsidiary officers and implementation of officer selection based on these criteria Ensure that all subsidiary officer candidates recommended by responsible sections conform with selection criteria Selected subsidiary officers after compliance checks Defined the competencies that are required of Group officers, including the officers at our subsidiaries.
Through compliance checks, selected the officers at our subsidiaries.		 Documented the criteria for selecting subsidiary executives. Candidates recommended based on the established criteria were appointed as subsidiary executives following a compliance check.
Make management systems of each group company more effective and efficient, aligned with the group’s unified policy
Implement appropriate post-merger integration (PMI) for acquired companies Implement appropriate post-merger integration (PMI) for acquired companies - - Did due diligence prior to acquisitions based on each corporate function.
Based on a list consolidating the items with which companies who are newly part of the Group must comply with the grace periods for coming into compliance, carried out PMI activities of our US subsidiary acquired in February. 		Implemented PMI activities for the U.S. subsidiary acquired in February, based on a list of compliance requirements and their respective grace periods for the newly added group companies.
Asset Efficiency Improvement Rebuild business portfolio OP margin 12% or more 8.8% 7.7% 8.2%
ROE 14% or more 11.6% 8.3% 7.9%
Optimize facilities and manufacturing sites
Capex (3 years) 750 billion yen 291.3 billion yen 275.7 billion yen 218.6 billion yen