Enhance Operational Framework
As our business continues to globalize, in order to fulfill our social responsibility to our diverse stakeholders, it is important that the entire Group, including our subsidiaries outside of Japan, work to strengthen our management base. For our Group to balance business operations and social responsibility, we are working on the strengthening of Group governance and risk management.
Related Sustainable Development Goals and Targets
The following are the materialities and their related Sustainable Development Goals and Targets for one theme of the Sustainability Action Plan: Enhance Operational Framework.
| Materiality | Goal | Target | |
|---|---|---|---|
| Strengthen governance | ― | ― | ― |
| Ensure compliance | 16. Peace, justice and strong institutions | 16.5 | Substantially reduce corruption and bribery in all their forms |
| Manage risk | 11. Sustainable cities and communities | 11.b | By 2020, substantially increase the number of cities and human settlements adopting and implementing integrated policies and plans towards inclusion, resource efficiency, mitigation and adaptation to climate change, resilience to disasters, and develop and implement, in line with the Sendai Framework for Disaster Risk Reduction 2015–2030, holistic disaster risk management at all levels |
| Ensure responsible procurement in the supply chain | 8. Decent work and economic growth | 8.7 | Take immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labour, including recruitment and use of child soldiers, and by 2025 end child labour in all its forms |
| 12. Responsible consumption and production | 12.5 | By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse | |
| 13. Climate action | 13.2 | Integrate climate change measures into national policies, strategies and planning | |
| 17. Partnerships for the goals | 17.16 | Enhance the Global Partnership for Sustainable Development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the Sustainable Development Goals in all countries, in particular developing countries | |
| Strengthen information security | ― | ― | ― |
| Ensure transparent information disclosure and strategic communication | 17. Partnerships for the goals | 17.16 | Enhance the Global Partnership for Sustainable Development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the Sustainable Development Goals in all countries, in particular developing countries |
FY2021 Achievements
The following are our fiscal 2021 achievements in each of the materialities for the above theme of the Sustainability Action Plan, Enhance Operational Framework.
Sustainability Action Plan (PDF: 763KB)
FY2021 Achievements of the Sustainability Action Plan (PDF: 333KB)
Strengthen governance
To improve the effectiveness of the Board of Directors, we will continue to utilize PDCA to improve the issues identified in questionnaires and interviews. In fiscal 2021, we implemented e-learning on the Group Code of Conduct for the Daifuku Group in Japan, the Contec Group, and the Daifuku North America Holding Company Group.
| KPIs | Scope | FY2021 targets | FY2021 results |
|---|---|---|---|
| Improving the effectiveness of the Board of Directors | Global | Carry out efforts to improve effectiveness |
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| Enhancing internal perceptions | Implement measures to propagate the Group Code of Conduct globally |
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| Carrying out sound internal audits | Carry out internal audits in Japanese business units and global subsidiaries (total 300 cases, 3 years) and maintain compliance with internal evaluations |
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Efforts to improve the effectiveness of the Board of Directors
In order to further enhance our corporate governance, every year since fiscal 2015 we have been examining the composition and operation of the Board of Directors as a whole to determine whether it is functioning properly, and by identifying any issues we have taken steps to improve problem areas and bolster our strengths. When analyzing and evaluating these results, we outsource the work to an external evaluation organization to ensure independence and objectivity.
For the evaluation of the effectiveness of the Board of Directors in fiscal 2021, a questionnaire (47 questions in total, including seven written answers) was sent to all directors (9) and all auditors (4), and interviews were conducted with the CEO and four outside directors.
Ensure compliance
In fiscal 2021, we conducted an e-learning course on general compliance, including bribery, for the individuals authorized to receive and place orders in the Daifuku Group in Japan, the Contec Group, and the Daifuku North America Holding Company Group.
| KPIs | Scope | FY2021 targets | FY2021 results |
|---|---|---|---|
| Carrying out anti-corruption training | Global | Carry out training and follow-ups for Japanese and global parties with authority to accept and place orders |
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Manage risk
In fiscal 2021, we conducted a risk assessment that took into account the results of a questionnaire sent to executives inside and outside Japan, and we identified important risks that could significantly impact the business activities of the Daifuku Group. Starting in fiscal 2022, we will establish a Risk Management Committee chaired by the CEO to promote Group-wide risk management for risks that could have a substantial impact on our operations.
| KPIs | Scope | FY2021 targets | FY2021 results |
|---|---|---|---|
| Implementing countermeasures against major risks | Global |
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Ensure responsible procurement in the supply chain
In fiscal 2021, we made preparations to formulate new guidelines, and in fiscal 2022, the Human Rights and Supply Chain Subcommittee under the jurisdiction of the Sustainability Committee will launch a sustainable procurement project to promote substantive discussions.
| KPIs | Scope | FY2021 targets | FY2021 results |
|---|---|---|---|
| Establishing a CSR procurement system and expanding the range of operations | Global | Review CSR Procurement Standards and formulate new guidelines to be applied in Japan and abroad |
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Strengthen information security
In fiscal 2021, we conducted information security education and e-mail training as follows. Educational tools were made available in multiple languages, and the entire Group, including subsidiaries outside of Japan, were engaged.
Strengthening information security
| KPIs | Scope | FY2021 targets | FY2021 results |
|---|---|---|---|
| Number of global information security education sessions | Global | 2 sessions | 2 sessions |
| Number of global e-mail training sessions | 3 sessions | 3 sessions |
Ensure transparent information disclosure and strategic communication
We achieved our target, including ESG-related targets, for the amount of dialogue with shareholders and investors. Beginning in fiscal 2022, we will focus on efficient operations through Group meetings and other means and change the target to “the number of companies with which we are in dialogue.” Although participation in community contribution activities in each region was somewhat subdued due to COVID-19, a working team will be formed in fiscal 2022 to plan events for the entire Company that will make a broader contribution to society.
| KPIs | Scope | FY2021 targets | FY2021 results |
|---|---|---|---|
| Number of dialog meetings held with shareholders and investors | Global | 370 meetings (ESG-related: 10 meetings) |
376 meetings (ESG-related: 16 meetings) ➡1,241 companies (ESG-related: 52 companies)* |
| Enhancing communication with stakeholders | Japan | Carry out events for science and engineering students; get employees to participate in social contribution activities |
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- *In fiscal 2022, KPI changed to: “Number of companies with which dialog meetings were held.” There were 31 more companies with which dialog meetings were held compared to the previous year.