Message from Chief of
the Sustainability Management Office

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Sustainability

Message from Chief of the Sustainability Management Office

We will incorporate frontline insights into our initiatives to realize sustainability management with full employee participation.

Chief of Sustainability Management Office
Hiroshi Sakama

The role of companies in realizing a sustainable society is growing day by day. Recognizing this great tide of change as part of our own challenge, we are working to make sustainability the cornerstone of our business. In 2024, we identified our materiality (key issues) and established key performance indicators (KPIs) accordingly. We quantified KPIs wherever feasible, including qualitative ones, to establish more effective KPIs through review by the Executive Committee and Board of Directors. The importance of setting KPIs lies in enabling PDCA implementation and demonstrating progress to stakeholders through objective indicators. We will communicate annual results through sustainability reports, dialogues with shareholders and investors, and other communication tools.

Our materiality consists of four key challenges.
"Ensuring product reliability, safety, and stability" is the foundation of the values we provide to our customers. Led by the Quality Assurance Management Department, we strive to ensure safety both within the company and to our customers. To address this challenge across the entire value chain, we have launched engagement surveys targeting our business partners. Meanwhile, the Advanced Technology Strategy Office leads innovation, developing products for electric vehicles and liquid detection sensors.
"Creating New Value through Environmental Improvement" commits us to focus on reducing GHG emissions with a view of achieving carbon neutrality by 2050. We achieved visualization of our efforts by completing Scope 1–3 emissions calculations across all sites in Japan and overseas. Our next step is to improve calculation accuracy and evaluate and implement measures with high reduction effects.
Under "Building a People-Friendly Organization," we address organizational issues identified through last year's employee engagement survey. We will also enhance diversity, cultivate innovation talent, and promote human rights due diligence.
Guided by "Strengthening of Corporate Governance," we will strive to formulate various regulations to address information security risks, which have become particularly critical to strengthen in recent years.

To ensure a steady progress in these activities, the understanding and cooperation of frontline teams are essential. We will incorporate insights from the frontline into our initiatives to realize sustainability management with full employee participation. To enhance all employees' understanding, we share sustainability information via our intranet and email. In addition, I personally visit each site to engage in dialogue through town hall–style meetings. Our dialogues cover a wide range of themes, including wellness, human rights, and governance. I will continue to convey to all employees that each employee's "sense of well-being" contributes to sustainability.