Sustainability in TAIYO YUDEN Group | Sustainability

Top Message
Sustainability Committee Structure
Materiality
Stakeholder Communication

Top Message

Contributing to a Sustainable Future through the Wonders of Science

In today's world we are required to address a range of social challenges, including combating climate change and creating a society with greater diversity. To meet this requirement, we need to demonstrate creativity and foster innovation for the transformation of society. Based on this recognition, TAIYO YUDEN aims to contribute to solving various social issues and to bettering society through its activities to increase both its economic and social value, the two components of its corporate value.

TAIYO YUDEN has been delivering new value to an always-changing world ever since its founding. We will continue to support the further advancement of leading-edge technologies based on our ability to manufacture high-efficiency and high-quality electronic components, while creating solutions that help people lead secure, comfortable and convenient lives. As a new type of business solution that also contributes to solving social issues, our regenerative electric-assist system helps reduce the environmental impact of electric-assist bicycles by making it possible for the bicycles to be recharged while they are running. As another example, our river monitoring system contributes to disaster control and mitigation through the real-time monitoring of water levels and other conditions.

For TAIYO YUDEN, employees who have diverse characteristics are a source of value creation, but to create such value they must be in good health and provided with opportunities to make meaningful contributions. In order to promote diversity in our workplaces, we set targets for the proportion of women among new graduates hired by the company and in managerial positions. We also regularly conduct an employee engagement survey toward implementing measures to increase employees' interest in and satisfaction with their jobs. TAIYO YUDEN also focuses on the solution of environmental issues and sets its own reduction targets for greenhouse gas (GHG) emissions, waste generation and water consumption. Especially for GHG emissions, with an eye to contributing to the achievement of the so-called 1.5 degrees Celsius target agreed at COP26^*, we will further foster our energy conservation and creation measures as well as the use of renewable energy toward the realization of a decarbonized society, while also enhancing the disclosure of related information.

We are intensively conducting these activities as part of our issues of materiality set under the Medium-term Management Plan 2025 by backcasting from 2030. Going forward, TAIYO YUDEN will continue to make contributions to a sustainable future.

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The 26th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change

Katsuya Sase
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.

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.
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. In the process of formulating Medium-Term Management Plan 2025, we reviewed and extracted issues and initiatives related to economic and social values that we had been aware of.
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.
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.
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	Economic Value	Social Value
Category	Economic Value	E Environmental		S Social		G Governance
Materialities	Strengthen core technologies to make our core business grow Create solutions to solve social issues	Strengthen measures to address climate change	Use resources effectively and contribute to create recycling society	Achieve health-oriented management and work style reforms at safety first workplace	Train and develop human resources based on the diversity policy	Improve management quality to support business growth Establish and evolve BCM for disaster and infectious disease
KPIs (2021-2025)	Net sales 480 billion yen Operating margin 15% or higher ROE 15% or higher ROIC 10% or higher	GHG emissions Absolute amount FY2030 42% reduction * compared with FY2020	Waste Water usage Absolute amount FY2030 25% reduction * compared with FY2020	Safe & secure workplace /Optimization of group base functions Creating safe, comfortable and environmentally friendly workplaces Incidence rate of injuries and illness <0.016 Accident frequency rate <0.08	Work style reforms /Diversity Work engagement 2.5 or higher Rate of newly recruited female graduates 30% or higher Female manager ratio FY2030 10% or higher
SDGs Targets

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.

Stakeholder Communication	Methods of Communication	Objectives & Policy on Communication
Employees	Employee surveys (Stress checks, health & safety awareness surveys, etc.) Discussions with labor union Training sessions for employees Career counseling service	In an aim to achieve TAIYO YUDEN's materiality of to "achieving health-oriented management and work style reforms at safety first workplace" and "training and developing human resources based on the diversity policy," and to become a company where employees can work energetically, we are taking various initiatives including conducting employee awareness surveys on a regular basis.
Local Community	Factory tours Dispatch lecturers to manufacturing classes, participate in manufacturing-related events Participate in and sponsor local activities and charity events Volunteer activities such as forest maintenance, afforestation, and cleaning Softball classes by women's softball team	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.
Shareholders and Investors	General Meeting of Shareholders Announcement of Financial Results IR, SR interviews	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.
Customers	Day-to-day sales activities Customer satisfaction survey Review and audit by customers Exhibitions, seminars Technological exchange sessions	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.
Suppliers	Briefings on suppliers policy Audit to suppliers (CSR audits)	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.