Sustainability ｜ Sustainability Management ｜ TDK Group's MaterialityEnergy transformation (EX): Contribution to energy and environmental solutions by minimizing waste heat and noise with electronic devices
- Background to Identification as Materiality
- Overview (Themes, responsible department, goals, KPIs, and progress)
- Department Head Messages
Background to Identification as Materiality
Significance for TDK
Energy transformation (EX), which TDK advocates, sets its sights on the problem of climate change, which is an urgent issue worldwide. It is one of the issues that the TDK Group should address in unison in order to achieve both a sustainable society and corporate growth. A lot of stakeholders including customers and investors pay close attention to climate change countermeasures, which are one of the factors in the selection of business partners and investment destinations. Therefore, the TDK Group has identified EX as materiality. We are sure that the steady implementation of EX will have a substantial effect on business and fund procurement.
Significance for Society
TDK’s EX initiatives are aimed at revitalizing and protecting the global environment and creating a pleasant and safe society. As stated in TDK Environmental Vision, they will lead to operations under the environmental load within natural circulation. TDK, which is a maker of electronic components in the supply chain midstream, believes that tackling EX as an important issue in management is also vital in terms of accelerating climate change countermeasures by society at large.
Furthermore, we believe that TDK’s products and solutions can contribute to the creation of clean energy and the realization of an energy efficient society and can exert a positive impact on society not only in the production but also in the use phase.
Overview (Themes, responsible department, goals, KPIs, and progress)
| Themes | Responsible department | Goals in 3 years | Action items | KPIs |
Medium-term target* (Fiscal 2022-2024) |
Progress of Fiscal 2022 | Progress of Fiscal 2023 |
|---|---|---|---|---|---|---|---|
| Effective use of energy and expanded use of renewable energy toward the realization of net zero CO2 emissions by 2050 | Safety & Environment Group | CO2 emission intensity from energy use (Scope 1, 2) is reduced by 12% compared with base year (fiscal 2015). |
Aim at halving CO2 emission intensity, as advocated in the TDK Environmental Vision 2035 through the following two activities
|
CO2 emission intensity from energy use | Reduce by 12% compared with fiscal 2015 | Reduced 32% | Reduced 30.7% |
| Provide products and solutions to create clean energy and realize a zero-carbon society | Corporate Marketing & Incubation HQ | The portfolio of related technologies and products is regularly updated to contribute to the use of clean energy, such as solar, wind, hydro, and geothermal power. | Study renewable energy and alternative energy market and technology to find potential new business opportunity for TDK | 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 will continue the studies and will publish an internal comprehensive market report in 2022. | We researched technology and market trend 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. | ||||
| Provide products and solutions to realize an energy efficient society by storing, converting, and controlling energy | Corporate Marketing & Incubation HQ | The portfolio of related technologies and products that contribute to better energy efficiency is regularly updated so that TDK’s EX is recognized by society. | Study energy transfer and storage market and technology to find potential new business opportunity for TDK | Research and publish an internal marketing the respected area | 1 report / year |
We researched technology trend and potential market for TDK. We will 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. |
| Find potential opportnity 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. |
*The targets run from fiscal 2022 through 2024 (ending March 31, 2024).
Department Head Messages
Safety & Environment Group, Sustainability Promotion HQ
Jason Mizell
【Responsible Theme】
- Effective use of energy and expanded use of renewable energy toward the realization of net zero CO2 emissions by 2050
I think that TDK’s identification of and commitment to corporate materiality is extremely valuable for both TDK and society. The motivation required to entrench this approach and show achievements to stakeholders comes from the discovery of challenges toward realizing a sustainable society and deployment within the Group. For this purpose, it is important to arouse motivation in the Group as a whole by appropriately setting directions in line with TDK’s policy of empowerment and transparency and sharing and deploying useful information.
Issues standing in the way of promoting the introduction of renewable energy include regionally different infrastructure, legislative systems, and procurement costs. To overcome these challenges, we will promote measures in accordance with conditions in each country and each region and in consideration of both total optimization and cost restraint.
Furthermore, we will promote specific actions to achieve the Group-wide goal of raising TDK’s global ratio of renewable energy introduction to 50% (Scope 2) by fiscal 2025, which is TDK’s interim target toward the goal of achieving net zero CO2 emissions by 2050.
Corporate Marketing & Incubation HQ
Michael Pocsatko
【Responsible Themes】
- Provide products and solutions to create clean energy and realize a zero-carbon society
- Provide products and solutions to realize an energy efficient society by storing, converting, and controlling energy
The Corporate Marketing & Incubation HQ plays the role of TDK’s antenna, catching customer needs and disseminating TDK’s technologies. Our mission is to transform data into information and intelligence and, based on that intelligence, create and incubate new products and solutions that do not exist in TDK’s portfolio. Our Goal is to accelerate “Value Creation” by building bridges - communicating and collaborating across innovators both inside and outside the company. This is creating a strong “Outside-In” perspective, a more customer-oriented approach and language.
While going beyond our organization and collaborating with all kinds of divisions both inside and outside TDK, we aim to combine TDK’s technologies and create new value.
TDK’s EX and DX initiatives are an important activity responding to the demands of society. Essentially the technologies developed by TDK are marvelous things that can contribute to the well-being of people. At the same time, these priority fields are at the core of TDK’s long-term strategy and a vital factor in promoting our business plan Value Creation.
Going forward, we must create more customer-centered innovations, entrench the outside-in way of thinking in our organization, and realize 2CX (customer experience and consumer experience), which means providing experiences that go way beyond the expectations of customers.
