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 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 : 293KB)

FY2021 Achievements of the Sustainability Action Plan(PDF : 361KB)

  • Materiality

Strengthen governance

To improve the effectiveness of the Board of Directors, we will continue to use 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 effectiveness of the Board of Directors Global Carry out efforts to improve effectiveness
  • Held interviews with selected officers in addition to conventional questionnaires on the Board's effectiveness
Enhancing internal perceptions Implement measures to propagate the Group Code of Conduct globally
  • Released the Compliance Guidebook to explain the Group Code of Conduct in six languages and propagated it globally
  • Globally implemented e-learning on the Guidebook and the concept of compliance
Carrying out sound internal audits Carry out internal audits in Japanese business units and non-Japan subsidiaries (total 300 cases, 3 years) and maintain compliance with internal evaluations
  • 125 audits (103 in Japan, 9 international, 13 specified audits)
  • Internal evaluations determined the Group as compliant

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 taking measures, such as improving problem areas and bolstering our strengths by examining the composition and operation of the Board of Directors as a whole, to determine whether it is functioning properly and to identify any issues that need to be addressed. 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 was sent to all directors (9) and all auditors (4) (47 questions in total, including seven written answers), and interviews were conducted with the CEO and four outside directors.

Corporate Governance (Investor Relations)

  • Materiality

Ensure compliance

  • 16. Peace, justice and strong institutions

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.

Compliance

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/place orders
  • Created compliance training materials for global use in Japanese and English and carried out e-learning
  • Materiality

Manage risk

  • 11. Sustainable cities and communities

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.

Risk Management

KPIs Scope FY2021 targets FY2021 results
Implementing countermeasures against major risks Global Carry out regular risk assessments and risk response training
  • Conducted a risk assessment through 49 officers of Group companies worldwide and identified five significant areas of risk
  • 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

In fiscal 2021, we made preparations to formulate new guidelines, and in fiscal 2022, the Human Rights and Supply Chain Subcommittee under the auspices of the Sustainability Committee will launch a sustainable procurement project to promote substantive discussions.

Supply Chain Management

KPIs Scope FY2021 targets FY2021 results
Establishing a CSR procurement system and expand range of operations Global Review CSR Procurement Standards and formulate new guidelines to be applied in Japan and abroad
  • Conducted different surveys to formulate new guidelines
  • Materiality

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
  • Materiality

Ensure transparent information disclosure and strategic communication

  • 17. Partnerships for the goals

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.

Stakeholder Engagement

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
  • Held “DAIFUKU Presents Discovery Hackathon 2021,” a manufacturing event for science and engineering students to facilitate exchanges with students from Japan and abroad
  • Contributed to local communities through voluntary cleanups and tie-up events with social welfare organizations, mainly in the Shiga region
  • *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 over the previous year.