Sustainability | Sustainability Management | TDK Group's MaterialityOpportunity and Risk Management

Background to Identification as Materiality

Significance for TDK

By identifying opportunities in TDK’s business based on internal and external information, it will be possible to create new products and solutions that do not currently exist in TDK’s portfolio and allocate research and development resources efficiently. TDK will be able to acquire new business opportunities and aim for further growth.
Furthermore, by properly evaluating and recognizing risks that would obstruct the achievement of management targets, it will be possible for senior management and business divisions to accurately grasp opportunities and risks and take risks rationally in accordance with growth strategy. That would also lead to the prevention of damage to our business and corporate value caused by the outbreak of large-scale accidents, scandals, and so on.

Significance for Society

We believe that the TDK Group’s efforts to strengthen marketing using digital technology, effectively identify business opportunities, and bolster risk management capabilities will enable us to continue to meet the expectations of stakeholders for, among other things, the supply of high-quality products in accordance with social issues and customer needs, the realization of a productive environment, and compliance with standards required by society.

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
Identify and capture business opportunities effectively by strengthening marketing capability with full use of digital technology Corporate Marketing & Incubation HQ Scope: Digital Marketing is a global corporate function to understand current business trends and predict new opportunities in order to efficiently manage opportunity and risk. We utilize data driven solutions to accurately, timely and efficiently provide intelligence to top management and other internal stakeholders.

Goals in 3 years: Establish data architecture for digital marketing, utilize UX-driven advertisement and content creation in order to acquire relevant customer information. Data analytics will then be utilized to extract information regarding market trends and product utilization by our stakeholders.
  • Inbound marketing: Provide TDK’s added-value information to customers
  • Content marketing: Acquire prospective customers
  • Accumulate and expand data and transform it into information and intelligence
 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.
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.
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.
Strengthen the group's risk management capabilities Corporate Planning Group System to recognize and evaluate risks, formulate countermeasures and monitor their implementation is rebuilt, and scheme to systematically manage Group-wide risks is placed.
  • Build a management system to collect, assess and manage corporate risks
  • Identify and manage climate change risks
 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.
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/).

*The targets run from fiscal 2022 through 2024 (ending March 31, 2024).

Department Head Messages

Corporate Marketing & Incubation HQ

Michael Pocsatko

Responsible Theme

  • Identify and capture business opportunities effectively by strengthening marketing capability with full use of digital technology

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.

Corporate Planning Group, Corporate Strategy HQ

Shuichi Hashiyama

Responsible Theme

  • Strengthen risk management capabilities throughout the entire Group

I think that a challenge in the TDK Group at the moment is the lack of human resources with professional knowledge and experience relating to enterprise risk management (ERM) and a lack of understanding relating to risk management within the Group. Therefore, our first task will be to establish a risk management policy and build a secretariat structure. Then we will raise risk sensitivity in the Group by getting each division to assess risks relating to that division and try and foster a better risk culture embracing the thinking, recognition, and conduct of employees toward risks.
By encouraging each organization to accurately recognize risks and opportunities in the volatile business environment, we will build a setup for realizing sustainable value creation and value protection.