Non-financial Activities
E: Environment
Materiality
Global environmental conservation and reduction of environmental load
Performance Indicators (KPIs)
- Introduction of equipment that contributes to CO2 reduction
- Increasing the utilization ratio of renewable energy such as solar power
- Efforts to reduce CO2 emissions by introducing power-saving devices/adjusting with demand devices
Met the emissions requirements of Jiangsu Province’s pollution control regulations (environmental assessment) following the relocation of the Suzhou plant in China (zero phosphorus and nitrogen emissions)
- Collaboration with “Conservation of Forest of Yamakado Water Source” activities
- Maintain and strengthen relationship
No special remarks
- Promotion of paperless practice (reduce paper use)
- Lead terminals: Reduce by 99% by 2024 (compared with 2021) at headquarters manufacturing department
Reducing in phases
- Improving the productivity of optical communication parts and devices and effectively using resources
- Productivity (yield): 80% or more of products sold externally, 90% or more of products sold internally
- Energy saving in crystal growth process/KECS/KLA
- Electricity consumption (per intensity): Reduce by 5% YoY starting in 2022
- Reducing the number of defects
- Defect rate: Reduce by 38.3% by 2024 (compared with 2021)
Defect rate: 3.89%(2022results) → 4.44%(2023 1Qresults)
- Promoting the reuse of water globally
- Lead terminals: Reduce water consumption by 6% by 2024 (compared with 2021)
Increased 33.9%
Trends in CO2 emissions reduction and efforts toward reduction (issues, achievements)
| Category | CO2 Emissions | Examples of Activities | |
|---|---|---|---|
| 2021 | 2022 | ||
| SCOPE1 | 244 t | 198 t |
|
| SCOPE2 | 17,797 t | 17,065 t |
|
| SCOPE3 | Not measured | Not measured |
|
| Total | 18,041 t | 17,263 t | |
| Emissions per unit sales | 1.234 t/million yen | 1.101 t/million yen | |
S: Social
Materiality
Development of global human resources
Performance Indicators (KPIs)
- Headquarters: Promoting guidance on and development of specialized knowledge and management skills
- Acquisition of specialized knowledge necessary for headquarters operations: 2 cases/year starting in 2022
Implementing various training and education programs
- Overseas: Promoting OJT in operations and OFF JT for the surrounding business environment
- Acquisition of specialized knowledge necessary for overseas operations: 3 cases/year starting in 2022
Providing local staff with skill improvement training
Materiality
Creating a workplace that respects diverse individuals and making the most of their abilities
Performance Indicators (KPIs)
- Promotion of diversity and inclusion
- Obtain Certification as Outstanding Organization in Health & Productivity Management in 2023
Certified as an Outstanding Organization in Health & Productivity Management in March 2023
Appointed a female director in March 2023
- Carrying out awareness-raising activities for respecting human rights
- Survey of current paid leave usage rate: Increase 5 percentage points YoY starting in 2022
Not achieved yet, re-planning
Materiality
Realization of safe and rewarding workplaces
Performance Indicators (KPIs)
- Promotion of safety and health measures
- Utilization of employee satisfaction survey: Conduct survey and make improvements once a year
Improvement of Safety Management Levels
Materiality
Respect for human rights and diversity
Performance Indicators (KPIs)
- Appropriate evaluation of part-time employees
- Introduce evaluation system for part-time employees
Already carried out
- Headquarters: Human resource development that makes the most of the abilities of female and foreign employees
- Percentage of female and foreign employees in supervisory (leader) and managerial positions: Increase 5% YoY starting in 2022
Increased the number of female managers from zero to 1 at the Head Office
- Overseas: Increasing the ratio of female and foreign employees in supervisory and managerial positions
- Career advancement training participation rate: Increase 15% via 2022–2023 plan
Percentage of female employees: Malaysia 50%, China - Dongguan 38%, Suzhou 50%.
Materiality
Development and provision of new products yet to exist in the world
Performance Indicators (KPIs)
- Realization of new optical communication parts and devices that contribute to technological innovation
- Realization of optical communication parts and devices that contribute to energy saving
- New product ratio (net sales): 15% or more by 2024
- Energy-saving product ratio (net sales): 15% or more by 2024
Currently 10%
Materiality
Strengthening manufacturing technology and quality assurance system
Performance Indicators (KPIs)
- Achieving productivity and quality improvement with advanced technology
- OEE (Overall Equipment Effectiveness): 88% by 2024 (90% including new welding technology)
Increased 3.9% from 2022
Materiality
Coexistence and common benefit with local communities
Performance Indicators (KPIs)
- Promoting social contribution initiatives
- Basic funding policy for social contribution activities: 0.5%–1% of consolidated ordinary income (average for the past three fiscal years)
- Collaboration with “Conservation of Forest of Yamakado Water Source” activities
- Basic funding policy for social contribution activities: 0.5%–1% of consolidated ordinary income (average for the past three fiscal years)
Planning an event for autumn 2023
- Promoting scholarship program to Nagahama Agricultural High School
- Basic funding policy for social contribution activities: 0.5%–1% of consolidated ordinary income (average for the past three fiscal years)
- Continuing to donate educational art materials to Nagahama City
- Basic funding policy for social contribution activities: 0.5%–1% of consolidated ordinary income (average for the past three fiscal years)
- Promoting activities to clean up traffic mirrors and trash in the neighborhood
- Basic funding policy for social contribution activities: 0.5%–1% of consolidated ordinary income (average for the past three fiscal years)
G: Governances
Materiality
Partnerships with suppliers
Performance Indicators (KPIs)
- Promoting fair trade practices (stakeholder management)
- Consider and implement evaluation score system
- Evaluation score: Increase 5% YoY starting in 2023
Implemented a supply chain evaluation system
Materiality
Thorough corporate governance
Performance Indicators (KPIs)
- Strengthening compliance education and training
- Ensure compliance with the corporate governance code on an ongoing basis
Conducted harassment training, etc., as appropriate
- Utilization of whistleblowing system
- Ensure compliance with the corporate governance code on an ongoing basis
1 report filed this fiscal year
- Appropriate management and utilization of owned information and intellectual property
- Ensure compliance with the corporate governance code on an ongoing basis
Managed by the IP Committee
- Taking appropriate measures for information system security
- Ensure compliance with the corporate governance code on an ongoing basis
Conducted security response training and seminars in June 2023
- Formulation of basic sustainability policy (CG Code 3.1.3, 4.2.2)
- Ensure compliance with the corporate governance code on an ongoing basis
Sustainability advisory contract, company-wide training
- Information disclosure in English (3.1.2)
- Ensure compliance with the corporate governance code on an ongoing basis
Ongoing since November 2022
- Other
- Ensure compliance with the corporate governance code on an ongoing basis
Evaluated the board’s effectiveness