Sustainability | Sustainability Management | Key CSR Issues Summary of Key CSR Issues (FY 2016–20)

Summary of Key CSR Issues

After considering the degree of impact of background social issues from the viewpoint of the TDK Group and the perspective of stakeholders, the TDK Group addressed the four areas of “Contribute to the world through technology,” “Develop human resources,” “Consider the societal and environmental impact of the supply chain,” and “Develop and prosper in harmony with the global environment” as key CSR issues in fiscal 2016–20.
Regarding each key CSR issue, important themes set to promote initiatives more effectively were reviewed each year at the time of the compilation of business plans in consideration of social trends and other factors and decided after approval by the Executive Committee. In fiscal 2020, we reviewed this materiality at the time of the compilation of the new Medium-Term Plan, and identified materiality, defined as key issues that receive the priority investment of the organization's management resources and be tackled to achieve the Medium-Term Plan and achieve both a sustainable society and corporate growth.
Here we summarize the key CSR issues addressed in fiscal 2016–20. As shown below, TDK continues to tackle these key issues in the new materiality.

  • Contribute to the World through Technology > EX (Energy transformation), DX (Digital transformation), Quality Management
  • Develop Human Resources > HR Management
  • Consider the Societal and Environmental Impact of the Supply Chain > Supply Chain Management
  • Develop and Prosper in Harmony with the Global Environment > EX (Energy transformation)

  • ◆Risks and opportunities

    These refer to opportunities that are created by addressing key CSR issues (materiality) relevant to SDGs and risks that are presented by not engaging in the efforts.

  • ◆Key themes

    Each year, we review key themes based on social trends at the time of formulating a business plan and make a decision after obtaining approval in the Executive Committee.

Contribute to the World through Technology

◆Risks ◆Opportunities
  • Loss of sales opportunities
  • Deterioration of technical capabilities
  • Inhibition of growth of Group Companies
  • Loss of trust from customers and society
  • Improvement of technical capabilities
  • Technical innovations by collaborating with customers
  • Contribution to solving social issues
  • Growth of Group Companies
  • Quality improvement in response to market changes
  • Improvement in credibility with customers and society

◆Key theme 1: Addressing Social Issues by Developing New Kinds of Products the World Has Not Yet Seen

Main initiative items Functions
  • Strengthening of basic technology
  • Promotion of technical developments that are conscious of Kotozukuri (integrated solutions)
  • Promotion of product development and sales of First to Market products
  • Technology Headquarters
  • Each Business Group

◆Key theme 2: Pursue Zero-defect Product Quality

Main initiative items Functions
  • Construction of source control-type quality assurance system
  • Manufacturing process innovation using IT and robots
  • Continuous improvement of quality management
  • Human resource development on a global scale
  • Quality assurance function
  • Each Business Group
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Results of Key CSR Issues

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Key theme 1:
Addressing Social Issues by Developing New Kinds of Products the World Has Not Yet Seen

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Building of setup to address SDGs in our main business

Examples of business creation starting from social issues are evident in the TDK Group around the world. See here for details.

Key theme 2:
Pursue Zero-defect Product Quality

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Continued updating of product quality education and global deployment in pursuit of zero-defect product quality

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Number of languages of translated product quality education contents

Develop Human Resources

◆Risks ◆Opportunities
  • Lack of human resources, lack of ability (bearer), loss of human resources, decrease in productivity
  • Reduced growth
  • Activation of personnel exchange among Group Companies
  • Sources of new creativity and growth
  • Development into a truly global company

◆Key theme 1: Develop Global Human Resources

Main initiative items Functions
  • Expansion in range of collection and grasping of information on human resources
  • Introduction of global selection education
  • Establishment of mechanism for fostering true global leaders
  • Human Resource Development function

◆Key theme 2: Cultivate a Corporate Culture that Respects Diversity

Main initiative items Functions
  • Consideration of expansion and improvement of accuracy of attribute information of human resources to be collected by the consolidated management database in order to link to measures
  • Promotion on the understanding of various cultures through the implementation of corporate human resource meetings globally and by area
  • Promotion of maintenance and improved workplace environments that are easy to work in for diverse employees in each region
  • Human Resource Development function
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Results of Key CSR Issues

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Key theme 1:
Develop Global Human Resources

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Introduction of global management training program and expansion of participation by region and level

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Global operation of English language study program and promotion of foreign language proficiency

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Number of people completing the TCDP

(cumulative total for FY 2018–20)

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Number of participants in English language study program

(cumulative total for FY 2018–20)

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Annual training hours per person

(FY 2020)

Key theme 2:
Cultivate a Corporate Culture that Respects Diversity

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Compilation of Diversity & Inclusion Policy

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Establishment of special department for diversity promotion

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Formulation of global competency for top management

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Consider the Societal and Environmental Impact of the Supply Chain

◆Risks ◆Opportunities
  • Occurrence of serious human rights violations in bases within Asian regions that we operate in as a Group
  • Occurrence of serious human rights violations and environmental pollution in bases within Asian regions of the Group’s suppliers
  • Participation in conflicts at mining sites, serious human rights violations, and environmental destruction through the purchase of metal materials and metal-containing parts
  • Risk reduction in Group Companies
  • Continuation of transactions with customers
  • Promotion of alternative material development

◆Key theme 1: Consider the Work Environment at Manufacturing Sites

Main initiative items Functions
  • Implementation of CRS self-checks and risk assessments in all production sites
  • Improvement of activity levels through CSR audits by customers and voluntary CSR audits
  • Continuous improvement of knowledge and ability through internal auditor training
  • CSR function

◆Key theme 2: Consider the Work Environment of Suppliers

Main initiative items Functions
  • Promotion of global understanding of CSR procurement
  • Improvement of management level of CSR procurement
  • Construction of a system to understand the CSR efforts of outsourced suppliers
  • Procurement function
  • Each Business Group
  • Human Resource Development function

◆Key theme 3: Responsible Sourcing of Minerals

Main initiative items Functions
  • Improvement of supplier ratio confirmed to be Conflict-free
  • Continuous participation and collaboration with industrial organizations and related organizations
  • Procurement function
  • Quality assurance function
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Results of Key CSR Issues

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Key theme 1:
Consider the Work Environment at Manufacturing Sites

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Continued 100% implementation every year of CSR self-checks at manufacturing sites

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CSR self-check implementation rate

(FY 2016–20)

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Continued 100% implementation every year of labor and human rights/ethics risk assessment at manufacturing sites

environment2

Labor and human rights/ethics risk assessment implementation rate

(FY 2016–20)

Key theme 2:
Consider the Work Environment of Suppliers

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Increase of 6.8 points in ratio of CSR compatible suppliers

environment3

CSR compatible supplier ratio

Increase from 91.2% in FY 2017 to 98.0% in FY 2020

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Continued 100% implementation every year of CSR self-checks at dispatch companies used by manufacturing sites in high-risk countries

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CSR self-check implementation rate

(FY 2017–20)

Key theme 3:
Responsible Sourcing of Minerals

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Increase of 11.3 points in ratio of confirmed conflict-free suppliers

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Confirmed conflict-free supplier ratio

FY 2016: 83.2%; FY 2017: 92.3%; FY 2018: 92.6%; FY 2019: 93.1%; FY 2020: 94.5%

Develop and Prosper in Harmony with the Global Environment

◆Risks ◆Opportunities
  • Creation of environmental impact at the Group’s production sites
  • Creation of environmental impact through value chains
  • Contribution to reducing environmental impact through product supply
  • Response to and mitigation of climate change through business activities
  • Improved evaluations of product contributions

◆Key theme 1: Reduce Environmental Load throughout Life Cycle Stages

Main initiative items Functions
  • Understanding of the environmental impact in each stage from the life cycle perspective
  • Establishment of CO2 conversion methods for each environmental load
  • Implementation of environmental load reduction activities in each stage of the life cycle
  • Safety and Environment function

◆Key theme 2: Creating a Framework for Gauging Product Contributions

Main initiative items Functions
  • Development and establishment of industry standards
  • Awareness-raising activities for the established standards
  • Safety and Environment function
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Results of Key CSR Issues

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Key theme 1:
Reduce Environmental Load throughout Life Cycle Stages

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The TDK Environmental Vision 2035 calls for halving of the CO2 emission basic-unit in a life-cycle perspective by 2035. Among other things, TDK is promoting the reduction of CO2 emissions at manufacturing sites and in distribution, the expanded use of renewable energy, the reduction of resource procurement, and the increased contribution to the reduction of CO2 through products.

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Key theme 2:
Creating a Framework for Gauging Product Contributions

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Continuation of activities in cooperation with industrial organizations and continued implementation of measures to promote the diffusion of calculation work in the Group

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