Sustainability | Sustainability Management | TDK Group's MaterialityMateriality Progress at a Glance
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|Progress of Fiscal 2022||Progress of Fiscal 2023|
|EX: Contribution to energy and environmental solutions by minimizing waste heat and noise with electronic devices||Effective use of energy and expanded use of renewable energy toward the realization of net zero CO2 emissions by 2050||
||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||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'll 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||Research and publish an internal marketing the respected area||1 report / year||We researched technology trend and potential market for TDK.
We'll 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.|
|DX: Promotion of the digitalization of society by adding software technology to material science and process technology||Provide products and solutions to help build resilient communication network infrastructure||
||Research and publish an internal marketing the respected area||1 report / year||We researched technology and market trend of AR/VR application. Findings were published as an internal report and been shared among TDK stake holders.||We conducted research on technology trends and the market in regard to AR/VR/MR and issued an internal report. We held webinars in-house and AR/VR experience sessions, and shared the importance of the metaverse and UX with the relevant parties within TDK.
We also conducted research on technology trends in 6G telecommunications technology and issued an internal report.
|Find potential opportunity to support resilient communication network infrastructure and incubate new business, product or solution in TDK||By the end of 2023||New product development for AR/VR project were engaged. We'll continue to support AR/VR and expand investigation to other areas in 2022.||TDK has come up with technologies that can make a contribution to 6G telecommunications and begun development to verify its feasibility. Multiple other items are in progress.|
|Provide products and solutions for supporting robotics and mobility to promote the enhancement and complementation of human capabilities||Research and publish an internal marketing the respected area||1 report / year||We researched technology and market trend of on board high performance computing and robot. Findings were published as an internal report and been shared among TDK stake holders.||We conducted research on technology trends and the market related to robotics, including autonomous driving, and issued an internal report.|
|Find potential opportunity to provide products and solution for robotics and mobility and incubate new business, product or solution in TDK||By the end of 2023||We engaged in potential new business incubation projects, we will continue support in 2022.||We have begun a review of a sensor solutions business that include data analysis algorithms tht could be applied to autonomous driving and industrial robotics.|
|Promote digitalization at TDK||Efforts to strengthen the integrated business management process from procurement to delivery, and the seamless infrastructure to visualize supply-chain conditions underpinning that process, so as to improve 2CX and accelerate the practice of ESG/SDGs||Realize in pilot product businesses during fiscal 2024||As a first step, implemented work reforms relating to transactions between Group companies||To improve efficiency in the value chain activity of our global base, make it possible to visualize at a single glance the status of everything from material purchasing to sales .|
|Speedup of work by introducing a globally common IT platform and strengthening of the training of human resources to use it||
||Realized by promoting citizen development contributions to business through expanding our global collaboration platform and data analytics platform use.|
|Quality Management||Pursue zero-defect product quality||
||Implementation of quality education at all applicable sectors||Promote the globalization of quality education utilizing DX||Started learning with digitalized educational content||Created and deployed online quality education content in collaboration with the global HR function and overseas sites|
|Management of certification maintenance at all applicable sites (ISO9001)||Certification maintenance ratio: 100%||100%||100%|
|Consideration of the development of systems by utilizing AI||
|Reduce quality costs||Quality improvement activities for each cause||Implement measures for each cause||
|Maximize customer satisfaction with product and service quality||“A rank” in degree of customer satisfaction
*Among the total of supplier evaluations obtained from customers, “A rank” means the ratio of customers expressing satisfaction.
|At least 95%||96.8%||95.0%|
1. Visualization of supply chain management from a consolidated perspective
2. Formation of inventory holding standards based on supply policy and strengthening of management function
|Build new work infrastructure for consolidated supply-demand management in applicable product groups and strengthen visualization of the flow of products and information
Furthermore, redefine work rules and endeavor to entrench delivery/inventory management infrastructure to enable speedy decision making
1. Increased the accuracy of PSI information in existing infrastructure
2. Completed concept formulation toward the building of consolidated supply-demand management infrastructure
1. Continued to increase the accuracy of PSI information in existing infrastructure
2. Completed new operation designing and PoC (Proof of Concept) for building consolidated supply-demand management infrastructure
|HR Management||Develop human resources to lead the TDK Group||
||Number of GEMP (Global Executive Management Program) participants||10-15 participants / cohort linked to 3 year mid-term plan||13 participants||10 participants have been selected for next cohort|
|Number of Global AMP (Global Advanced Management Program) participants||20-25 participants / year||0 (26 candidates' participation in the program was postponed to fiscal 2023 due to inability to meet face-to-face.)||19 participants|
|Number of GMP (Global Management Program) participants||40-50 participants / year||44 participants||44 participants|
|Number of TCDP (Territorial Career Development Program) participants||80-100 participants / year||89 participants||100 participants|
|Foster greater diversity and inclusion||Attendance ratio of workshop for managers (Japan)||70%/year||98%/year||97%/year|
|% of female candidates for promoting to manager position (Japan)||4%/year||10.3%/year||8.9%/year|
|Female managers ratio (Japan)||3%||3.7%||4.3%|
|Improve employee engagement and job satisfaction to attract and retain talented employees||
||Prepare the concept in fiscal 2022.||Preparation done in fiscal 2022 for the implementation||Rolled-out to all applicable TDK group companies in fiscal 2023|
|Supply Chain Management||Enhance global procurement capabilities and mechanisms||
||Visualization and utilization of supplier information and purchasing data||Build a platform to uniformly visualize the TDK Group’s supplier information and purchasing data and utilize it in procurement strategy||Visualized supplier data of main subsidiaries||Consolidated procurement data of subsidiaries within the group (in progress)|
|Reduction of procurement risks for high-risk parts and materials||Conduct supply chain risk analysis and implement countermeasures||Identified high-risk parts and materials||Promoted risk mitigation of high-risk parts/materials|
|Conformity with global common rules||100%||Built a monitoring mechanism and began checking the state of establishment of individual rules||Confirmed and corrected individual regulations of subsidiaries|
|Ensure responsible procurement||Ratio of suppliers recognized as procuring the 3TG minerals (tin, tantalum, tungsten, and gold) from RMAP-conformant refineries (RMAP: Responsible Minerals Assurance Process)||At least 92%
Disseminate and instill the idea of responsible mineral procurement among suppliers
|Ensure societal and environmental consideration in the supply chain||CSR compliant supplier rate||100%||99%||100%|
|Implementation rate of CSR self-checks at manufacturing sites||100%||100%||100%|
|Implementation rate of labor, and ethics risk assessments at manufacturing sites||100%||100%||100%|
|Ratio of manufacturing sites implementing RBA-authorized audits (RBA: Responsible Business Alliance)||25%||10%||34%|
|Ratio of manufacturing sites implementing RBA-authorized audits, customer CSR audits, or CSR assessment based on the RBA VAP Operations Manual at least once every three years||100%||24%||65%|
|Provision of opportunities for training through e-learning or on-site training, including dialogue||Implement every year||Provided necessary training opportunities globally||Provided necessary training opportunities globally|
|Opportunity and Risk Management||Identify and capture business opportunities effectively by strengthening marketing capability with full use of digital technology||
||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||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/).|
|Pursuing Both Delegation of Authority and Internal Controls||Ensure speed and transparency in operations, based on the clearly defined roles, authorities and responsibilities of each organization||Clarification of criteria for selection of subsidiary officers and implementation of officer selection based on these criteria||Ensure that all subsidiary officer candidates recommended by responsible sections conform with selection criteria||Selected subsidiary officers after compliance checks||Defined the competencies that are required of Group officers, including the officers at our subsidiaries.
Through compliance checks, selected the officers at our subsidiaries.
|Make management systems of each group company more effective and efficient, aligned with the group’s unified policy|
|Implement appropriate post-merger integration (PMI) for acquired companies||-||-||-||
Did due diligence prior to acquisitions based on each corporate function.
Based on a list consolidating the items with which companies who are newly part of the Group must comply with the grace periods for coming into compliance, carried out PMI activities of our US subsidiary acquired in February.
|Asset Efficiency Improvement||Rebuild business portfolio||OP margin||12% or more||8.8%||7.7%|
|ROE||14% or more||11.6%||8.3%|
|Optimize facilities and manufacturing sites|
|Capex (3 years)||750 billion yen||291.3 billion yen||275.7 billion yen|
*The targets run from fiscal 2022 through 2024 (ending March 31, 2024).