Enhance Operational Framework

  • 8. Decent work and economic growth
  • 11. Sustainable cities and communities
  • 12. Responsible consumption and production
  • 13. Climate action
  • 16. Peace, justice and strong institutions
  • 17. Partnerships for the goals

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 the Group to balance business operations and social responsibility, we are working on strengthening 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

FY2022 Achievements

The following are our fiscal 2022 achievements in each of the materialities for the above theme of the Sustainability Action Plan, Enhance Operational Framework.

Sustainability Action Plan (PDF: 763KB)

FY2021-FY2022 Achievements of the Sustainability Action Plan (PDF: 333KB)

  • Materiality

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 2022, we implemented audits locally at seven out of eight global subsidiaries. We will continue to conduct audits using a risk-based approach, and we will strive to improve the quality of our audits.

KPIs Scope FY2022 targets FY2022 results
Improving the effectiveness of the Board of Directors Global Carry out efforts to improve effectiveness
  • Addressed issues identified in an effectiveness assessment of the Board of Directors ((1) training opportunities for board members, (2) sharing the discussion content of Advisory Committee meetings, (3) diversity in Board of Directors composition)
Enhancing internal perceptions Implement measures to propagate the Group Code of Conduct globally
  • Utilized the Compliance Guidebook, which explains the Group's Code of Conduct, and disseminated the concept of compliance through e-learning and at meetings for overseas subsidiaries
  • Reformed the e-learning system, bringing the total number of participants to more than 10,000 over a two-year period
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
  • Total of 88 audits: 71 in Japan, 8 at overseas subsidiaries, and 9 specified audits (214 audits over 2 years)
  • Internal evaluations determined the Group as compliant

Efforts to improve the effectiveness of the Board of Directors

We regularly review the composition and operations of the Board of Directors and assess its effectiveness. By addressing issues identified from the results of the assessment, we strive to continuously strengthen the functions and improve the effectiveness of the Board. For the fiscal 2022 Board of Directors effectiveness assessment, we sent a questionnaire to all directors (9) and all auditors (4), and interviews were conducted with one director and all auditors. To ensure the objectivity and independence of the evaluation, we obtain the assistance of an external evaluation organization at key points in the assessment process.

Corporate Governance

  • Materiality

Ensure compliance

  • 16. Peace, justice and strong institutions

The e-learning course on compliance, which includes content on the Group Code of Conduct, anti-corruption, and competition law, has reached a cumulative total of over 10,000 individuals since fiscal 2021. Course materials are available in 10 different languages to improve participants’ understanding.

Compliance

KPIs Scope FY2022 targets FY2022 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
  • Expanded the e-learning implemented in Japan and the US in fiscal 2021 to other countries and regions in multiple languages
  • Materiality

Manage risk

  • 11. Sustainable cities and communities

In fiscal 2022, the Risk Management Committee, which is chaired by the CEO, was established and meetings were held three times. Significant risks identified from risk assessment results that could affect the achievement of our management objectives are discussed and managed across the organization, led by the Risk Management Committee.

Risk Management

KPIs Scope FY2022 targets FY2022 results
Implementing countermeasures against major risks Global
  • Carry out regular risk assessments
  • Form a risk management policy and spread awareness of it
  • Implement significant risk countermeasures
  • Carry out risk response training
  • Established the Risk Management Committee and built an effective risk management system
  • Assigned departments to oversee five key risks and managed the progress of countermeasures
  • Held a total of four working groups focusing on procurement risks
  • Held lectures by risk management experts
  • Materiality

Ensure responsible procurement in the supply chain

  • 8. Decent work and economic growth
  • 12. Responsible consumption and production
  • 13. Climate action
  • 17. Partnerships for the goals

We are in the process of reviewing our CSR procurement standards. In fiscal 2022, we initiated the creation of Sustainable Procurement Guidelines, which will serve as the new standard, and facilitated discussions on the content of the guidelines and the system for their operation. In fiscal 2023, we established a new Production Innovation Division to oversee and manage the supply chain, and we are working across the business and corporate divisions to establish a system.

Supply Chain Management

KPIs Scope FY2022 targets FY2022 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
  • Began work on Sustainable Procurement Guidelines
  • Materiality

Strengthen information security

In fiscal 2022, we conducted information security education and e-mail training in accordance with our targets. Educational tools were made available in multiple languages, and the entire Group, including subsidiaries outside of Japan, were engaged.

Strengthening information security

KPIs Scope FY2022 targets FY2022 results
Number of global information security education sessions Global 4 sessions 4 sessions
Number of global e-mail training sessions 4 sessions 4 sessions
  • Materiality

Ensure transparent information disclosure and strategic communication

  • 17. Partnerships for the goals

We achieved our targets, including ESG-related targets, for the amount of dialogue with shareholders and investors. At the Logis-Tech Tokyo held in September 2022, we connected our newly renovated Hini Arata Kan to the venue via live broadcast to promote our cutting-edge material handling systems. In terms of community contribution activities, a working team was established in fiscal 2022, and more measures and events were implemented compared to fiscal 2021.

Stakeholder Engagement

KPIs Scope FY2022 targets FY2022 results
Number of companies with which dialogue meetings were held Global 1,200 companies
(ESG-related: 20 companies)
1,437 companies
(ESG-related: 70 companies)
Enhancing communication with stakeholders Japan
  • Implement measures to promote the brand based on the renewal of Hini Arata Kan
  • Carry out events for science and engineering students
  • Get employees to participate in social contribution activities
    • Held a tour of Hini Arata Kan for the media, which was attended by 17 people from 16 publications and resulted in 14 published articles
    • Exhibited at Logis-Tech Tokyo 2022 and had over 10,000 visitors to our booth
    • Began consideration for the implementation of manufacturing events for engineering students in fiscal 2023
    • Regularly conducted community contribution activities based on annual activity plans for the Company as a whole as well as for each region

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