Sustainability ｜ Sustainability Management ｜ Key Issues (Materiality) of TDKMateriality Progress Report
The TDK Group has set key performance indicators (KPIs) for its materiality (key issues), and is proceeding with activities directed toward achieving these KPIs. Our performance in FY March 2025 in terms of attaining the medium-term KPI goals was as follows.
Human Resources
Transformation through promoting and cultivating diverse pool of human resources to further enhance competitive advantage
Theme:
Promote diversity, equity and inclusion driven by inclusive leadership practices
Background of materiality setting and vision:
Ensure the diversity of the TDK Group’s human resources and promote leadership practices that enable each individual to fully develop their abilities and strengths.
| Main long-term and medium-term KPIs* | Medium-term KPI* target | Performance in FY March 2025 |
|---|---|---|
|
[L] Improve diversity in management team [M] Ratio of female participants in Global Management Development Programs |
30％ | 26% |
Theme:
Develop organizational capability to enhance innovation and efficiency
Background of materiality setting and vision:
Develop business entrepreneurs who can identify market needs and propose value to our customers to maximize the use of the TDK Group’s assets and enhance the organization’s ability to create new businesses.
| Main long-term and medium-term KPIs* | Medium-term KPI* target | Performance in FY March 2025 |
|---|---|---|
|
[L] No. of business entrepreneurs developed** [M] Number of overall participants in Global Management Development Programs |
500 participants or more/3 years | 179 participants/year |
Theme:
Improve team member (employee) health and engagement
Background of materiality setting and vision:
Promote an environment in which team members (employees) can work enthusiastically to ensure the diversity of the TDK Group’s human resources by enhancing team members’ engagement and health so that each individual can fully demonstrate their abilities.
| Main long-term and medium-term KPIs* | Medium-term KPI* target | Performance in FY March 2025 |
|---|---|---|
|
[L] Improve Engagement survey score [M] 1) Engagement survey measurement (communication) 2) Participant rate of engagement survey |
1) 75pts. or more 2) 80% or more |
1) 68pts. 2) 90% or more |
Governance
Advance group governance
Theme:
Improve the business portfolio continuously
Background of materiality setting and vision:
Optimize the corporate-wide business portfolio by identifying areas that need to be put in place.
| Main long-term and medium-term KPIs* | Medium-term KPI* target | Performance in FY March 2025 |
|---|---|---|
|
[L] Weighted average score of business portfolio [M] Amount of loss reduction in businesses to be intensively monitored |
Target achieved: 100% | Target achieved: 32% |
Theme:
Empowerment & Transparency
Background of materiality setting and vision:
Implement TDK’s governance based on a policy of Empowerment & Transparency, with the strengthening of risk management by enhancing group governance and introducing a new ERM system.
| Main long-term and medium-term KPIs* | Medium-term KPI* target | Performance in FY March 2025 |
|---|---|---|
|
[L] No. of significant Global Common Rule (GCR) violations [M] No. of follow-ups for significant GCR violation |
100％ | (In the first fiscal year, subjects for follow-up were identified) |
Environmental and Social Issues
Address environmental and social issues
Theme:
Respect human rights
Background of materiality setting and vision:
Respect the human rights of our stakeholders based on the values of the Code of Conduct, recognize the potential impact of all corporate activities on human rights, and promote activities to mitigate such impact.
| Main long-term and medium-term KPIs* | Medium-term KPI* target | Performance in FY March 2025 |
|---|---|---|
|
[L] Mitigated/corrected significant risks from supplier audits [M] Ratio of progress in planning annual onsite audits |
100％ | 100% |
Theme:
Address climate change
Background of materiality setting and vision:
Strengthen our activities to reduce greenhouse gas emissions and promote measures to address climate change in order to realize a net-zero CO2 emissions society by 2050.
| Main long-term and medium-term KPIs* | Medium-term KPI* target | Performance in FY March 2025 |
|---|---|---|
|
[L] CO2 net emissions [M] 1) Scope 1+2 emissions reduction 2) Reduction in energy use on an emissions intensity basis |
1) 42% (Target for FY March 2031, compared to FY March 2022) 2) 15.7% (Target for FY March 2027, compared to FY March 2021) |
1) 47.7% (Target for FY March 2031, compared to FY March 2022) 2) 30.5% (Target for FY March 2027, compared to FY March 2021) |
Customer
Create customer value and build strong relationships
Theme:
Build, maintain and deepen trust with customers
Background of materiality setting and vision:
Aim to increase customer satisfaction and expand our market share by building, maintaining, and deepening relationships of trust with our customers, taking advantage of our extensive track record of business with industry-leading customers.
| Main long-term and medium-term KPIs* | Medium-term KPI* target | Performance in FY March 2025 |
|---|---|---|
|
[L] Customer satisfaction survey score** [M] Resolved and feedbacked rate for issues identified from the survey** |
100％ | 100% |
Theme:
Access in-depth sources of customer needs
Background of materiality setting and vision:
Through strengthening our ability to envision the future, enhance our ability to create businesses from both technology and market perspectives, and expand sales in new applications.
| Main long-term and medium-term KPIs* | Medium-term KPI* target | Performance in FY March 2025 |
|---|---|---|
|
[L] No. of future pillar businesses to be created through collaboration with related divisions [M] Launch of new business divisions |
Target achieved: 100% | Target achieved: 50% |
R&D
Contribute to social Transformation through R&D
Theme:
Continue commercialization of advanced technology
Background of materiality setting and vision:
Create future core businesses through collaboration with related divisions to search for technological seeds that will create new markets and cultivate new customers for the realization of social transformation.
| Main long-term and medium-term KPIs* | Medium-term KPI* target | Performance in FY March 2025 |
|---|---|---|
|
[L] No. of themes transferred for the creation of future pillar businesses by promoting collaboration with related divisions [M] No. of theme selected and started |
4 themes/3 years | 2 themes/year |
Theme:
Realize intellectual property investment and utilization that contributes to business
Background of materiality setting and vision:
Create value by linking our intellectual property investment strategy to the goals of our business and R&D strategies: business success and R&D strategy success.
| Main long-term and medium-term KPIs* | Medium-term KPI* target | Performance in FY March 2025 |
|---|---|---|
|
[L] Percentage of intellectual assets (patents) tied to IP strategy for business and R&D themes [M] Elaborating IP strategy |
Target achieved: 100% | Target achieved: 100% |
Design and Production
Stabilize supply of high-quality products and increase production efficiency
Theme:
Maintain the capability to introduce products into market quickly and to ramp up mass production
Background of materiality setting and vision:
Maintain and improve the ability to bring products to market quickly and increase our competitive advantage by creating innovative ideas and ramping up mass production system based on an aggressive culture.
| Main long-term and medium-term KPIs* | Medium-term KPI* target | Performance in FY March 2025 |
|---|---|---|
|
[L] Success rate for new product introduction** [M] Completion rate of quality improvement activities of new product samples** |
100% | 100% |
Theme:
Improve predictability by sharing know-how
Background of materiality setting and vision:
Continuously improve predictability up to mass production to enhance manufacturing capabilities for launching new products and improve the new product launch rate.
| Main long-term and medium-term KPIs* | Medium-term KPI* target | Performance in FY March 2025 |
|---|---|---|
|
[L] New product launch achievement rate** [M] Rate of progress with new product development plan** |
Plan progress rate: 100% | Plan progress rate: 97% |
Theme:
Pursue zero defect and promote in-house production
Background of materiality setting and vision:
Improve our competitive advantage by making it difficult for other companies to enter the market and imitate us, through improvement activities aimed at achieving a zero defect rate and thorough in-house production of production tools and jigs, as well as in-house production of product components.
| Main long-term and medium-term KPIs* | Medium-term KPI* target | Performance in FY March 2025 |
|---|---|---|
|
[L] Overall failure cost ratio [M] No. of instances of implementation of quality compliance training (of various types) |
3 per fiscal year | 4 per fiscal year |
Theme:
Maintain diversity in products, technologies and involved markets
Background of materiality setting and vision:
Aim to expand the range of our proposals by maintaining a wide variety of markets and product lineups, as well as the diversity of process technologies. Further promotes collaboration strategically and proactively
| Main long-term and medium-term KPIs* | Medium-term KPI* target | Performance in FY March 2025 |
|---|---|---|
|
[L] Market share of specific business** [M] Score of customer satisfaction survey** |
Target achieved: 100% | Target achieved: 101% |
* Except where otherwise specified, [L] (long-term) refers to a period of 10 years, and [M] (medium-term) refers to a period of three years.
** Some businesses are excluded.
