Sustainability Management

Message from Officer Responsible for Promoting ESG

Enhancing corporate value and achieving a sustainable society by refining our business activities from the perspective of sustainability



Director and Executive Officer, General Manager of the Management Division
Hidenori Tokida

■ New medium-term management plan and key sustainability issues

　In the IWATSU Group, we have taken the opportunity provided by our new medium-term management plan to commit to placing sustainability at the core of our management, and pursuing enhancements to corporate value and sustainable growth through stronger ESG initiatives.
　Looking ahead to 2030, the year we plan to achieve the SDGs, various social issues are expected in areas with goals that are highly relevant to the IWATSU Group, issues that we should manage as a matter of priority in our medium-term management plan, etc. We have thus identified areas of key sustainability issues for the IWATSU Group, taking into consideration “IWATSU’s strengths,” by assessing the issues we should focus on as a matter of priority through their importance both to stakeholders and to our own businesses. Our areas of key sustainability issues consist of seven items, through which we will contribute to achieving 12 of the 17 SDGs, and under these areas of key sustainability issues, we have established a total of 17 themes for our activities.

■ Climate change and human rights problems

　Climate change associated with global warming is an environmental problem, but it is also a human rights problem imposed on developing countries by developed countries. For this reason, in the IWATSU Group, we consider a sustainable society where “nobody is left behind,” which is the target of the SDGs, to also be a world that is free from unfavorable conditions and imbalance caused by climate change.
　We recognize that areas of key sustainability issues related to the environment and human rights are particularly important for achieving the type of world targeted by the SDGs. We will contribute to solving the various social problems raised by the SDGs by promoting initiatives across the supply chain, not just within IWATSU.

■ Commitment to international initiatives

　In order to give a concrete form to our response to problems related to climate change, the IWATSU Group has been working to acquire SBT (Science Based Targets) certification during fiscal 2022, and we also expressed our support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in August 2022. Going forward, we will focus on initiatives and information disclosure aligned with the recommendations of the TCFD.

ESG Promotion System

The IWATSU Group has established and operates the “ESG Committee,” in order to achieve a sustainable society through our business activities, heighten the transparency and credibility of our management, and enhance corporate value over the medium and long term, based on our Corporate Philosophy and Sustainability Policy.
　This committee promotes ESG activities by promoting and monitoring activities, deliberating issues, and making decisions, with the aim of realizing the areas of key sustainability issues set forth by the IWATSU Group, led by the officer responsible for promoting ESG.
　The Board of Directors also receives reports on the content of meetings of this committee, and confirms risks, opportunities, and the effectiveness of activities related to ESG management.
　This sustainability report has also been deliberated by the ESG Committee and reported to the Board of Directors.

Communication with Stakeholders

　The IWATSU Group works to ascertain the expectations of society through communication with all stakeholders, and promotes initiatives aimed at achieving a sustainable society. We also endeavor to build relationships of trust with stakeholders through such communication.

Value Chain Map

Key Sustainability issues Map

　The external environment is becoming more complex, and social issues are materializing and becoming more severe, including increasingly rapid climate change, falling birth rates and aging populations, and the promotion of the digital transformation.
　In order to accelerate ESG management in response to these social conditions, the IWATSU Group has identified areas of key sustainability issues, taking “IWATSU’s strengths” into consideration, by determining future issues in our businesses and value chain and assessing their importance from the dual perspectives of “stakeholders” and “our businesses.”
　In the future, we aim to enhance corporate value over the long term by further accelerating our activities aimed at solving social issues through these initiatives.

Process for Identifying Key Sustainability issues

Types of Key Sustainability issues

Key Sustainability issues and Our Vision

Environmental

1. Promotion of procurement activities that take sustainability into consideration

　We will continuously focus on building and operating a supply chain that is resilient to disasters caused by climate change, while also taking war and human rights into consideration, thereby contributing to promoting decarbonization and maintaining and increasing abundance for all people involved in our supply chain.

2. Provision of environmentally-friendly products and services

　We will contribute to conserving the global environment by supporting the global development of energy conserving devices with our testing and measurement technology. We will also make an environmental contribution to our customers by continuously working to ensure those technologies and products are environmentally friendly, with little impact on ecosystems.

3. Reduction of the environmental impact of activities at our business sites

In addition to reducing environmental pollution, which has long been an area of focus for the IWATSU Group, we will also reduce the environmental impact of our business activities and contribute to conserving the global environment by actively using renewable energy and developing systems for resource circulation.

	Key Sustainability issues	Activity Themes	Our Vision for 2030	SDGs Contribution
1	Promotion of procurement activities that take sustainability into consideration	Creation of a resilient supply chain	Creation and operation of a supply chain that is resilient to natural disasters caused by climate change, while also taking war and human rights into consideration
		Reduction in GHG emissions associated with purchased products and services	Achievement of GHG emissions reduction targets for SBT, Scope 3 Cat.1.4
2	Provision of environmentally-friendly products and services	Contribution to a carbon neutral society through test and measurement technology	Contribution to reducing GHG emissions by supporting global development of energy conserving devices with power electronics test and measurement technology
		Improvement in energy efficiency of our products	Achievement of GHG emissions reduction targets for SBT, Scope 3 Cat.1.1
		Design of products with little impact on ecosystems	Ensure that 100% of new products comply with our own environmental label certification
3	Reduction of the environmental impact of activities at our business sites	Reduction in GHG emissions through more efficient business processes	Achieve GHG emissions reduction targets for SBT Scope 1 and 2
		Increase in the introduction of renewable energy	Set a target of achieving net zero GHG emissions from business sites by 2050 through the increased introduction of solar power and electric power from renewable energy
		Prevention of environmental pollution and promotion of biodiversity conservation	Contribution to the environment and biodiversity conservation through reduction in emissions of VOCs, PRTR substances, and other chemical substances, as well as compliance with standards for emission into the air and water
		Initiatives targeting resources and the environment	Contribution to a circular economy through the establishment of recycling schemes for the Company’s products and the reduction of waste from our business sites

Social

4. Social progress and development through products and services centered on “connecting,” “measuring,” and “communicating”

　We will contribute to solving the problems of our customers and society through continuous technological innovation related to communication technologies that connect people and things with a focus on “connecting,” “measuring,” and “communicating,” and the widespread delivery of better performance and quality to our customers.

5. Respect for diversity and increase in job satisfaction for employees

　We will endeavor to create an environment where each and every employee is able to exercise their qualities to the maximum extent, and work with vitality, by respecting the human rights and diversity of our employees, while also providing opportunities for health and productivity management and human resource development.

6. Promotion of communication and coexistence with local communities

　We will continuously promote coexistence with the local communities that support our company, through such measures as collaboration with regional public administration and active participation in charity events.

	Key Sustainability issues	Activity Themes	Our Vision for 2030	SDGs Contribution
4	Social progress and development through products and services centered on “connecting,” “measuring,” and “communicating”	Development of attractive new products and services based on technological innovation	Contribution to solving social issues through products and services that utilize technology related to the IoT, AI, and power electronics semiconductor test and measurement
		Increase in customer satisfaction through improvements to the quality of products and services	We will continuously work to improve the quality of our products and enhance customer satisfaction, and continuously prevent the occurrence of major market accidents with the thorough implementation of safe design
5	Respect for diversity and increase in job satisfaction for employees	Respect for Human Rights and Diversity	We will increase the proportion of female managers, and create an organization where women can fully exercise their abilities
			Promote respect for human rights and diversity in order to achieve the statutory employment rate for disabled people
		Human resources development and technological transfer	We will develop human resource development systems for technological innovation, and thus support the expansion of new businesses
			We will maintain our unique technology with systematic technology transfer
		Promotion of health and productivity management	Promotion of health and productivity management
6	Promotion of communication and coexistence with local communities	Promotion of communication and coexistence with local communities	We will promote coexistence with local communities that through such measures as collaboration with public administration, participation in charity events, and the promotion of volunteer activities among employees

Governance

7. Creation of governance systems that are highly transparent and credible in order to enhance corporate value

　We will strengthen corporate governance and achieve highly fair and transparent management that is trusted by society and stakeholders.

	Key Sustainability issues	Activity Themes	Our Vision for 2030	SDGs Contribution
7	Creation of governance systems that are highly transparent and credible in order to enhance corporate value	Strengthening and promotion of governance	We will continuously promote more transparent corporate governance
			We will promote diversity in the appointment of officers (including female officers)
			We will continuously prevent major compliance violations
		Highly transparent and credible external disclosure of information	We will appropriately disclose information through IR, our sustainability report, etc., and promote dialogue with stakeholders

In order to enhance corporate value, achieve unending development, and ensure co-prosperity with stakeholders, we will continue promoting stronger governance, under our basic policy of ensuring transparency and incorporating a diverse range of opinions and wide-ranging knowledge.

* In 2018, the Officer Remuneration Advisory Committee was changed to the Remuneration and Nomination Advisory Committee