Top Message
Aim to achieve sustainable well-being through our corporate activities
Today's world is facing a range of social challenges, including combating climate change and creating a society with greater diversity. As an electronic components manufacturer that supports the evolution of electronic technology, TAIYO YUDEN recognizes that its role is to bring transformation to society by demonstrating creativity and fostering innovation. In our medium-term management plan 2030, we will continue to develop various initiatives to contribute to the realization of sustainable well-being in society by enhancing corporate value through the creation of both economic and social value.
TAIYO YUDEN's vision of sustainable well-being is to spread happiness to society by solving social problems through the electronic components and solutions we create. Under our mission of "Stronger and more socially aware through the wonders of science," we will leverage our proprietary and advanced technological capabilities to create products and solutions that contribute to a healthy, safe, and secure citizen life, thereby providing new value to society.
In terms of environmental issues, we position measures against climate change as a materiality (key issues) and are promoting initiatives such as GHG emission reduction, expanding the use of renewable energy, and recycling used materials that integrate with our business activities. To achieve the goals set forth in our medium-term management plan 2030, we will strengthen collaboration throughout our entire supply chain and aim to create a recycling-oriented society.
Regarding the social aspect, we prioritize "Safety First" above all else in our business activities. Furthermore, we promote human resources development and human capital management based on the diversity policy, creating an environment where each employee can maximize their abilities and motivation, thereby improving our organizational strength.
Going forward, TAIYO YUDEN will continue to aim for the realization of sustainable well-being with our stakeholders.
Representative Director,
President and CEO
Sustainability Committee Structure
The Sustainability Committee convoke a quarterly to discuss solutions to sustainability issues, including materiality. We receive activity reports from ESG-related committees (Safety & Environmental MS, TGS, Environmental Promotion, Health Promotion, and Information Security) and deliberate on them.
These contents will be reported to the Board of Directors by the Representative Director, President and Chief Executive Officer, who is the Chairperson of the Sustainability Committee, and will be deliberated appropriately.
Materiality
Materiality (Key Issues) Identification Process
In order to achieve our mission, "Stronger and more socially aware through the wonders of science", we have identified our more important issues as materiality.
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STEP01
Establish mission and reaffirm management philosophy and vision
Taking it's 70th anniversary as an opportunity, TAIYO YUDEN established a new mission, "Stronger and more socially aware through the wonders of science," which is to be pursued unchanged and perpetually to become a centennial company. In addition, we reaffirmed our management philosophy, which is our value, and our vision.
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STEP02
Extract issues and initiatives relating to economic and social values
During the discussions in Step 1, we recognized that increasing corporate value perpetually requires increasing not only economic value but also social value. We reviewed and extracted issues and initiatives related to economic and social values that we had been aware of.
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STEP03
Gauge the demands and expectations of stakeholders
We engaged (held constructive dialogue) with shareholders, investors, customers, business partners, employees, and other stakeholders to gauge their demands and expectations for TAIYO YUDEN and the extent to which we can make a contribution.
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STEP04
Set priority order and extract issues as materiality
Based on the details outlined through Step 3 (issues extracted, demands and expectations for TAIYO YUDEN, extent of feasible contribution, degree of relevance to the business, etc.), we extracted issues that the Company should continue to prioritize.
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STEP05
Approve materiality
We identified a set of issues as materiality in the course of the numerous discussions among management. Materiality was then approved by the Board of Directors and announced.
Materiality
| Category | Materiality (Key Issues) |
Medium-Term Management Plan 2030 Priority Measures | Medium-Term Management Plan 2030 KPIs | ||
|---|---|---|---|---|---|
| Item | Target | ||||
| Economic Value | Strengthen core technologies to make our core business grow Responding to social issues through the creation of advanced products and solutions |
Product Strategy Increase sales across all categories, including capacitors, inductors, and others, by expanding sales of high-value-added products |
Net sales | 480.0 billion yen | |
| Operating margin | 15% | ||||
| Market Strategy Increase the proportion of sales in focus markets, primarily IT infrastructure/industrial equipment and automotive, to 60% |
ROE | 15% | |||
| ROIC | 10% | ||||
| Social Value | (E) Environmental | Strengthen responses to climate change | Accelerate our efforts with numerical targets to improve our social value | Carbon neutrality | Achieve by FY2050 (Scope 1 + 2) |
| Renewable energy adoption rate | 100% by FY2040 | ||||
| Effective use of resources and contribution to building a recycling-oriented society | GHG Scope 1 + 2 emissions | 42% reduction by FY2030 (vs. FY2020) | |||
| GHG Scope 3 emissions | 25% reduction by FY2030 (vs. FY2021) | ||||
| (S) Social | Health management and workplace innovation in a safety-first workplace | Serious occupational accidents | Zero (FY2026-FY2030) | ||
| Diversity-based human resources development and training | HR Well-Being Index | Improve 10% or higher by FY2030 | |||
| (G) Governance | Governance that fosters greater stakeholder trust | - | - | ||
| Improve management stability to support business growth | |||||
Stakeholder Communication
TAIYO YUDEN recognizes that the dialogues it has with stakeholders are important and essential to offer greater economic value and social value and, as a result, increase our corporate value, and works to conduct continuous communication.
| Stakeholders | Objectives & Policy on Communication | Methods of Communication | Examples |
|---|---|---|---|
| Employees | With workplace safety as our top priority, we aim to create a work environment where every employee can enhance their value and fully demonstrate their abilities. We monitor KPIs associated with priority themes and maintain ongoing dialogues with employees through opportunities to exchange opinions and internal consultation services to ascertain workplace conditions and challenges. The knowledge gained is reflected in various measures, leading to the creation of a dynamic organization. |
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| Local Community | As stated in the management philosophy, TAIYO YUDEN aims for the betterment of local communities, and desires to progress together. We provide factory tours for the people of local communities to promote understanding on TAIYO YUDEN. We also strive to build trust through social contribution activities including sports and volunteer activities. |
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| Shareholders and Investors | We work to provide better understanding of our management policies and business activities through timely and appropriate information disclosure and dialogue. Opinions obtained through dialogue are reported as feedback to management, including the Board of Directors, on a regular basis and are utilized to improve management. |
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| Customers | Through communication from the product design stage, manufacturing base audits, and scorecards, we meet the needs and required standards of customers. We participate in Japanese and international trade shows to introduce TAIYO YUDEN's products and solutions to the wide public including potential customers, and work to create new value. |
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| Suppliers | Suppliers are important partners in the business of TAIYO YUDEN. We hold procurement policy briefings to share TAIYO YUDEN's management and business policies, and ask suppliers to cooperate with the CSR assessment and audit using check sheets that are formulated based on the RBA Code of Conduct. Through this, we are working together to build a supply chain that will fulfill our corporate social responsibilities. |
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