Materiality
We ensure “our company will continue to grow through surpassing social and customer expectations by empowering connections,” as well as “committing to sustainable society, environment and quality through making our employees and stakeholders excited.
What We Envision
In April 2023, we aimed to communicate the essence of the company’s management philosophy more clearly and weave it into work in reality, and defined our purpose (the company’s reason for being in society) as “together, surpassing expectations by empowering connections to enrich society and delight people,” as well as our dream (the company’s contribution to society) as “to create a future world friendly to people and environment where a wide array of features and functions are easily connected” through offering a wide array of our connection solutions.
We envision that, as a result of making a strong commitment to the purpose and dream for 10 years or around, by 2035, “our company will sustain business growth through surpassing social and customer expectations by empowering connections,” as well as by “committing to sustainable society, environment and quality through making our employees and stakeholders excited.
Materiality Identification Process
To identify the company’s sustainable development goals (materiality) that will affect whether we can realize “what we envision,” we analyzed future industry megatrends and considered a wide range of social issues. We analyzed the importance of each goal to stakeholders, as well as the significance and impact (both opportunities and risks) of each issue on our company’s sustainable growth by using a scoring system. After we made full discussions, also with external experts, we have identified five materiality goals.
Materiality
Five materiality goals for the company to realize “what we envision” and achieve sustainable growth:
1. Addressing social issues and growing the company’s business
2. Unlocking the power of manufacturing to support value creation
3. Working towards secure, safe and livable society that supports people and the environment
4. Developing diverse talent management
5. Improving the management foundation
| Materiality (What We Envision) |
Major KPI | FY2023 | FY2030 | Opportunity | Risk |
|---|---|---|---|---|---|
| 1. Addressing social issues and growing our business (A company that aims to be ranked among the world’s top 10 connector companies by creating values through providing connector solutions to social issues) |
・Ratio of net sales from products that support automation and electrification for future mobility innovation ・Ratio of net sales from new products |
・35％
・23% |
・40％
・30% |
Growing demands for connectors used in electronic components as a result of an increasing number of circuit boards, helped by advanced automation and electrification in the future mobility market | Decreased competitiveness due to delays in product development that meet market needs |
| 2. Unlocking the power of manufacturing to support value creation （A company that, as one of the top 10 leaders in its industry, consistently showcases its ability to produce high-quality products) |
Improving cost of sales ratio by 7% | 69% | 62％ | ・Improving profitability through productivity increase ・Earning customers’ and social trusts |
Risks of accidents, lawsuits due to product defects, recalls, and damage to brand value |
| 3. Working towards secure, safe and livable society that supports people and the environment
(A company that actively supports the achievement of a sustainable society) |
・Free CO2 emissions from electricity（2025) ・Reducing SCOPE1-3GHG emissions by 20%（2030, VS.2021） ・Improving electricity intensity by 30%（2030, VS. 2021） |
・34kt
・274kt ・1.08MWh |
・Net 0 ・167kt ・0.95MWh |
・Contribution to a decarbonized society and circular economy ・Raising more funding from ESG (Environmental, Social, and Governance) investors |
・Business stagnation due to intensified climate change and disasters ・Increased costs to meet more stringent legal requirements |
| 4. Developing diverse talent management (A company that fosters an inclusive work environment where employees from diverse backgrounds can feel a sense of fulfillment in their work) |
・Diversity (foreigners, females and mid-career hires)
ratio of management employees ・Employee engagement score |
・84％
・48pt |
・90％
・53pt |
・Hiring diverse and talented human resources ・Generating further innovation through diversity |
・Failure to retain
diverse and skilled talent ・Innovation stagnation |
| 5. Improving management
foundation (A company that has a robust and reliable management structure, making it suitable to be recognized as one of the world’s top 10 companies in its industry) |
・ROE ・ROIC |
・7.8％
・7.3％ |
・10% and
more ・10% and more |
・Improving trust in society and boosting company value ・Generating further innovation through diversity |
・Fall in social trust and a decrease in business value ・Business growth slowdown and increased risks of business continuity |
Organizational Structure
The company’s sustainability initiatives are oversighted and handled mainly by the Management Strategy Meeting, which consists of executive officers, led by the Director and General Manager of the Administration Division, as well as the Sustainability Promotion Office, under the direction of the board of directors.