Sustainability | Sustainability Management | TDK Group's Materiality Identifying Materiality

TDK Group’s Materiality

Since fiscal 2015, the TDK Group has worked to address four key CSR issues (materiality): 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. 

In fiscal 2020, we reviewed our materiality in conjunction with preparing our new Medium-Term Plan. In order to both achieve the goals of the Medium-Term Plan and balance sustainable society with sustainable corporate growth, we identified materiality by defining key issues as those which should be addressed by giving them top priority in investment of the organization’s management resources.

Under Value Creation 2023, our Medium-Term Plan, we continue our approach of contributing to society while creating Commercial Value (achieving our growth strategy), Asset Value (improving asset efficiency), and Social Value (improving our value to society), aiming for business growth as a result. Social Value—the goal of a sustainable society and company—in particular we believe is the starting point of a cycle for creating the other types of Value.

EX (Energy transformation) and DX (Digital transformation), set forth in our materiality, are the business areas that TDK focuses on for social value creation and corporate growth, areas in which we can create value for society through the Group’s technology and products. We are striving to maximize Social Value primarily in these two areas by developing a system within the Company to generate products based on the issues raised in the SDGs. 

Quality management, human resource management, supply chain management, opportunity and risk management, pursuing both delegation of authority and internal controls, and asset efficiency improvement are the areas TDK has positioned as the basis for value creation in the fields of EX and DX. 

These areas intersect on our materiality diagram, indicating that there is a correlation between the two.

Materiality Promotion Structure

To continuously improve the materiality, a PDCA cycle is implemented by responsible function to be in charge of each materiality theme. Those functions establish goals to be achieved over the next three years, action items, implemented functions and the KPIs.

The Materiality Identification Process

The TDK Group’s materiality was identified through the following steps.


Understanding and organizing the issues

An internal draft was prepared based on the SDGs, GRI, RBA (Responsible Business Alliance), and survey items of leading ESG rating agencies; issues raised in the Group’s long-term strategy review materials; risks reported in the annual securities report; our key CSR issues and other information.


Gathering outside opinion

We gathered opinions on our draft materiality through dialogues and written opinions. These can be seen here.


Internal discussion

We prepared another internal draft based on the outside opinions. The completed draft was discussed again by the Executive Committee, and once approved was submitted to the Board of Directors. To achieve the goals of our Medium-Term Plan for fiscal 2021-2023, we decided to take a full-scale approach to engaging in these key issues, which should be addressed by giving them top priority in investment of the organization’s management resources.


Internal development

We began by assigning a division to take responsibility for each materiality theme. Under the leadership of those divisions, we then developed a vision for three years hence, items to be implemented to achieve that vision, divisions responsible for implementing those items, KPIs, and target numbers. These were finalized through discussions with management. Each division reports to management monthly on its progress, and works to continually improve their efforts through implementation of a PDCA cycle.