Sustainability Priority Issues

ROHM Group's Sustainability

Identifying Sustainability Priority Issues

[Background of Re-identification of Sustainability Priority Issues]

ROHM Group aims to be a company that continues to be selected by stakeholders by solving environmental and social issues in the future. The Group‘s management vision is to “resolve social issues by contributing to the ”energy conservation“ and ”downsizing“ of customers by focusing on power and analog.” In April 2021, we established "The ROHM Group Environmental Vision 2050" and declared carbon neutral and zero emissions. In May 2021, we formulated “MOVING FORWARD to 2025”, our medium-term management plan, as a strategic measure to achieve our Management Vision. Then, in May 2021, we formulated the medium-term management plan "MOVING FORWARD to 2025" as a strategy to achieve the "Management Vision" and re-identified sustainability priority issues. By working toward the realization of ROHM's ideal form and the achievement of sustainability issues necessary for the realization of the medium-term management plan, we will lead to the sustainable growth of ROHM and society.

[Process of Identifying Sustainability Priority Issues]

Sustainability priority issues and medium-term goals were set after analyzing and verifying the results of external evaluations, international guidelines such as ISO 26000, and expectations for ROHM from dialogues with internal and external stakeholders.

STEP1 : Identify Sustainability Priority Issues Candidates

  • Based on our Group's corporate philosophy, action guidelines, and business models, we identify candidates for issues to be considered as candidates for major issues based on the results of ESG assessments such as ISO 26000, GRI Standards, Sustainable Development Goals (SDGs), DJSI, MSCI, FTSE, Sustainalytics, etc., which are international CSR guidelines.

STEP2 : Evaluating from Stakeholder Perspective

  • We have selected five groups of stakeholders who are deeply involved in ROHM Group's corporate activities: customers, suppliers, institutional investors, local communities, and employees. We confirmed the importance of each candidate for consideration from the perspective of stakeholders through a questionnaire survey, and analyzed the results.
  • *
    In the questionnaire survey, about 180 people inside and outside the company gave their opinions on the evaluation of priority issues of ROHM Group.

STEP3 : Identifying and Prioritizing Priorities

  • Identify and prioritize important issues to be addressed by the ROHM Group not only from the perspective of impact on the sustainability of society, but also from the perspective of enhancing the Group's corporate value.
Identifying and Prioritizing Priorities
  • Strengthening Sustainable Technologies, Developing and Supplying Innovative Products
  • Mitigation of Climate Change
  • Effective Use of Resources
  • Strengthening Employee Engagement
  • Diversity Development
  • Ensuring the Health and Safety of Employees
  • Enhancing Corporate Governance
  • Risk Management
  • Sustainable Supply Chain Management
  • Strengthening Product Safety and Quality

STEP4 : Approval

  • Approved by the CSR Committee, which is composed of all directors and managers with equivalent authority.

[Sustainability Priority Issues]

Sustainability priority include “creating shared value (CSV), that is resolving social issues through business activities“, in which, by playing a part in solving social issues, our business activities themselves will also lead to ROHM’s own growth. They also include “business activities that could bring positive social impact to the society," in which we will meet the expectations of our stakeholders by mitigating the impact that our business activities have on those around us.

Sustainability Priority Issues

Sustainability Priority Issues Applicable SDGs Medium-term Goal Theme
Strengthening Sustainable Technologies, Developing and Supplying Innovative Products
3 GOOD HEALTH AND WELL-BEING
Contribute to solving energy problems through technological development and supply that can lead to substantial power saving Contribution by developing energy-saving products and supplying them to the market
7 AFFORDABLE AND CLEAN ENERGY
Minimize the burden on the global environment by contributing to the reduction of materials and waste through miniaturization of devices Contribution by developing and supplying miniaturized products
12 RESPONSIBLE CONSUMPTION AND PRODUCTION
Promote technological development to produce cars that do not cause traffic accidents Contribution by developing and supplying products pursuing functional safety
Mitigation of Climate Change
7 AFFORDABLE AND CLEAN ENERGY
Develop and disseminate products and services that contribute to the realization of a low-carbon, recycling-oriented, and natural coexistence society Reduction in GHG emission
13 CLIMATE ACTION
Reduction of energy consumption
15 LIFE ON LAND
Promotion of Introduction of renewable energy
Effective Use of Resources
3 GOOD HEALTH AND WELL-BEING
Build a business foundation that leads to recycling-oriented management Water resource consumption reduction
6 CLEAN WATER AND SANITATION
Reduction of waste
12 RESPONSIBLE CONSUMPTION AND PRODUCTION
Strengthening Employee Engagement
8 DECENT WORK AND ECONOMIC GROWTH
Realize a workplace environment in which employees at ROHM can take on challenges for social and corporate growth without fear of failure Foster a corporate culture that creates challenges
Enhancement of job satisfaction
Improve employee engagement scores
Diversity Development
5 GENDER EQUALITY
Increase the number of human resources who can independently think about things from a broad perspective and create new value Promote women's active participation
8 DECENT WORK AND ECONOMIC GROWTH
Global capacity development and personnel allocation
10 REDUCED INEQUALITIES
Ensuring the Health and Safety of Employees
3 GOOD HEALTH AND WELL-BEING
Realize a work environment in which employees can work safely and in good physical and mental health Securing a safe workplace
8 DECENT WORK AND ECONOMIC GROWTH
Promotion of health management
Enhancing Corporate Governance
16 PEACE, JUSTICE AND STRONG INSTITUTIONS
Build a solid management foundation to increase corporate value Secure diversity of the Board of Directors
17 PARTNERSHIPS FOR THE GOALS
Review of compensation system to improve medium-to long-term corporate value
  Secure the effectiveness of management
Risk Management
11 SUSTAINABLE CITIES AND COMMUNITIES
Establish a system that functions effectively against anticipated future crises in order to ensure the safety of employees and their families and to continue business Strengthening BCM management system
16 PEACE, JUSTICE AND STRONG INSTITUTIONS
Sustainable Supply Chain Management
9 INDUSTRY, INNOVATION AND INFRASTRUCTURE
Work with partner companies to build a supply chain that can respond to unprecedented situations and provide society with high-quality products Communications
12 RESPONSIBLE CONSUMPTION AND PRODUCTION
Strengthening BCM System
17 PARTNERSHIPS FOR THE GOALS
Promotion of green procurement
  Promotion of CSR procurement activities
Strengthening Product Safety and Quality
12 RESPONSIBLE CONSUMPTION AND PRODUCTION
Ensure product quality that meets customer needs and create products and services that customers choose Establishment and establishment of a quality assurance system through front loading
Achieving Appropriate Quality by Incorporating the Customer's Perspective

[Tartes for Each Sustainability Priority Issues]

  • Sustainability priority issues were formulated in 2021.
Strengthening Sustainable Technologies, Developing and Supplying Innovative Products
Background and Challenges for Initiatives Decarbonization is an issue that must be achieved worldwide.
To achieve these goals, technological innovations are progressing around the world to significantly reduce environmental impact, including the use of electric vehicles and renewable energy.
On the other hand, as technologies such as automatic operation have become widely spread throughout society, ensuring safety has also become a major issue. ROHM's strengths are power and analog technologies.
By utilizing these technologies to develop and provide new value-added technologies and products, we will contribute to the realization of global environmental problems and a safe society.
Theme
  • Contribution by developing energy-saving products and supplying them to the market
  • Contribution by developing and supplying miniaturized products
  • Contribution by developing and supplying products pursuing functional safety
Targets
(Target Year:FY2025)
Achieve sales of 470 billion yen by regarding sales as the total amount of social contribution
Related Initiatives
Mitigation of Climate Change
Background and Challenges for Initiatives The awareness of climate change has been increasing on a global scale, including the establishment of the Paris Agreement.
"The ROHM Group Environmental Vision 2050" has also been formulated with a strong recognition that this is a threat to our business activities and ourselves. In order to pass on the global environment to the next generation in a better state, ROHM Group will not only solve problems through its products, but also promote energy conservation throughout its business activities and introduce renewable energy, thereby contributing to the realization of a decarbonized society.
Theme
  • Reduction in GHG emission
  • Reduction of energy consumption
  • Promotion of Introduction of renewable energy
Targets
(Target Year:FY2030)
  • Reduce by 50.5% by 2030 compared to 2018
  • Reduce per-unit emissions by 45% by 2030 compared to fiscal 2018
  • Aiming for 100% introduction by 2050, promote renewable energy
Related Initiatives
Effective Use of Resources
Background and Challenges for Initiatives In order to create a sustainable society for the future without exhausting the limited resources on the earth, it is necessary to realize a "recycling-oriented society" that can produce the greatest effect with the smallest resources and energy. ROHM Group is pursuing recycling-oriented management that minimizes the impact on the global environment by establishing new systems and production technologies to reduce the impact on the global environment.
Theme
  • Water resource consumption reduction
  • Reduction of waste
Targets
(Target Year:FY2030)
  • Water recovery and reuse rate by 5.5%
  • Achieving Zero Waste Emissions at Consolidated Domestic and Overseas Companies
Related Initiatives
Strengthening Employee Engagement
Background and Challenges for Initiatives To become a company that solves the social issues outlined in its management vision, must be a company where every employee of ROHM Group working lively. To this end, it is important to create a working environment in which every employee at diverse lifestyle and life stages can work comfortably and achieve results. Through stronger engagement with employees, ROHM Group is committed to fostering a corporate culture that continues to boldly take on challenges without fear of failure in every workplace, and to creating a work environment that encourages employees to take on challenges.
Theme
  • Foster a corporate culture that creates challenges
  • Enhancement of job satisfaction
  • Improve employee engagement scores
Targets
(Target Year:FY2025)
  • ①Establish a system to train world-class next-generation leaders and professionals
  • ②Provide selective services that are adapted to employee orientation and lifestyles under the new normal conditions
  • ②Establish a system within the personnel mission-critical system to make data on employees' abilities, expectations, experience, qualifications, etc., and utilize it for appropriate hiring and assignment
  • ②Clarify job descriptions concerning job openings in each department
  • ③Initiate engagement survey in entire group,improve annual scroes and achieve employee engagement score at or above industry average
Related Initiatives
Diversity Development
Background and Challenges for Initiatives With production and sales bases around the world, ROHM Group consist of employees from a variety of nationalities and backgrounds.
By demonstrating the individuality and capabilities of these diverse human resources and teamwork as "ONE ROHM", innovation can be created, and products that lead to the resolution of social issues can be provided.
To this end, regardless of gender or nationality, it is essential for employees to develop human resources with a global mindset that allows them to think proactively, accept different cultures and ideas from a broad perspective, and create new value. Based on this philosophy, ROHM Group has identified “Promoting Diversity” as an important management issue.
We will take measures that everyone can make the most of their abilities.
Theme
  • Promote women's active participation
  • Global capacity development and personnel allocation
Targets
(Target Year:FY2025)
  • ①Increase global female manager ratio to 15% by 2025 and to 20% by 2030
  • ②Establish a human capital development system for ROHM Group
  • ②Integrate the mixed human resources system and deploy it as a global system within the Group
  • ②Accumulate strategic data on evaluation, compensation, promotion and placement
Related Initiatives
Ensuring the Health and Safety of Employees
Background and Challenges for Initiatives Accidents at work sites can threaten the lives of employees and affect business continuity. For this reason, ROHM Group believes that it is important to create a workplace in which all employees and stakeholders involved in business can work safely and protect the lives and human rights of employees. Furthermore, for every employee to be motivated and to maximize their abilities, it is necessary for employees to be healthy both physically and mentally.
Based on these concepts, ROHM Group recognizes that realizing safe, secure, and healthy workplaces is an important management issue, and will actively work to create a comfortable and secure workplace environment and to maintain and promote mental and physical health.
Theme
  • Securing a safe workplace
  • Promotion of health management
Targets
(Target Year:FY2025)
  • ①Achieve and maintain "0" in the number of lost time accidents in ROHM Group
  • ②Establish and maintain an epidemic prevention system against unknown infectious diseases in ROHM Group
  • ②Improve and maintain the exercise habit ratio of ROHM above the national average
  • ②Make efforts to establish exercise habits in ROHM Group
Related Initiatives
Enhancing Corporate Governance
Background and Challenges for Initiatives For corporate activities to comply with the rules of society and meet the expectations of diverse stakeholders, it is necessary to enhance corporate governance with the aim of strengthening competitiveness while ensuring management transparency. To this end, it is essential to clarify the roles and responsibilities of the Board of Directors and other bodies, to make swift decisions, and to promote the separation of management execution and supervision by utilizing outside directors from an independent and objective standpoint, thereby strengthening the monitoring and supervisory functions of the Board of Directors.
ROHM Group aims to strengthen corporate governance, achieve sustainable growth, and increase corporate and shareholder value.
Theme
  • Secure diversity of the Board of Directors
  • Review of compensation system to improve medium-to long-term corporate value
  • Secure the effectiveness of management
Targets
(Target Year:FY2025)
  • ①Increase the female or foreign national officer ratio at head office to 10%
  • ②Increase the number of independent outside directors to a majority of the board of directors
  • ②Introduce a compensationsystem linked to the Medium-term management plan (financial and non-financial targets)
  • ③Evaluate the effectiveness of the Board of Directors once every three years
Related Initiatives
Risk Management
Background and Challenges for Initiatives Amid the diversification of risks surrounding companies in conjunction with economic globalization and changes in society, appropriately managing various internal and external uncertainties related to business is indispensable for the execution of management strategies and business objectives. Even if we suffer damage from a large-scale natural disaster, accident, infectious disease, or other epidemic, etc., it is an important responsibility as a company to ensure that critical operations are not interrupted, and that recovery and resumption of operations are carried out in the shortest possible time in the unlikely event of interruption. ROHM Group considers "risk management" to be an important management issue for the business foundation, and considers events that may interfere with operations and business performance as "risks" and minimizes the occurrence of such events, and takes measures to ensure business continuity and recovery smoothly even when events occur.
Theme Strengthening BCM management system
Targets
(Target Year:FY2025)
  • Strengthen BCP system through continuous identification of risks
Related Initiatives
  • Analysis of the organizational environment, identification, analysis, evaluation, and countermeasures against major risks, and PDCA
  • Continuous Response to Natural Disasters (Earthquakes, Wind Flood Damage, Eruptions), Emerging Infectious Diseases, Geopolitical Risks (U.S.-China Friction, etc.)
  • Production restoration plan, BCP inventory design and operation, multisite production sites, and risk reduction activities
  • Formulate guidelines for safety and security in case of pandemic or natural disasters
Sustainable Supply Chain Management
Background and Challenges for Initiatives In order to stably bring high-quality products to the world that meet the needs of society, it is essential to establish a robust procurement system and build strong partnerships with our business partners, which are important partners. In addition, to provide society with high-quality products in preparation for natural disasters and infectious diseases, which have recently become a threat to business continuity risks, it is essential to establish a system that enables comprehensive management of all ROHM Group's suppliers in terms of quality, safety, the environment, human rights, and BCM together with business partners, and to improve management quality throughout the supply chain. With our business partners, we will work together to establish a procurement system that meets the expectations of society and build a sound supply chain to provide society with high-quality products based on the concept of mutual trust and prosperity.
Theme
  • Communication
  • Strengthening BCM System
  • Promotion of green procurement
  • Promotion of CSR procurement activities
Targets
(Target Year:FY2025)
  • ①100% comprehensive evaluation of supplier activities of critical suppliers
  • ①100% CSR self-assessment ratio of critical suppliers
  • ②Purchasing ratio of 90% or more from suppliers who have completed comprehensive evaluation of supplier activities
  • ②100% survey of production bases of Tier1 suppliers
  • ②100% prior agreement rate for emergency response of critical suppliers
  • ③Environmental management system self-evaluation pass rate 100%
  • ④CSR self-assessment result 90% or more of purchases from suppliers of B or above
Related Initiatives
Strengthening Product Safety and Quality
Background and Challenges for Initiatives The basic philosophy of "We always place quality first" is the foundation of ROHM's manufacturing (MONOZUKURI).
We state that "quality" represents customer satisfaction. Therefore, ROHM Group pay careful attention to develop new products, production systems, the purchase of raw materials, and to all manufacturing processes. Moreover, we strive daily to ensure all staff from sales to administrative department, adhere to the corporate objective of "quality first". Based on this basic philosophy, ROHM Group will strive to improve not only product safety, but also customer satisfaction.
Theme
  • Establishment and consolidation of quality assurance system through "Front loading"
  • Realizing Proper Quality from the Customer's Perspective
Targets
(Target Year:FY2025)
Quality Satisfaction Score + 10% Improvement (compared to FY2020)
Related Initiatives

Communication with Stakeholders

The main stakeholders of ROHM Group are customers whom our products and services are provided to;
and all those individuals from the society such as shareholders, investors, employees, and suppliers who have direct stake in the functioning and performance of a company.

Stakeholder Group Main Responsibilities Main Communication Methods & Opportunities
Customers Ensure product qaulity Contact our support team through the official website
Disclose relevant information of products Exhibition
Improve customer satisfaction Product information session
Meet potential requirements of customers Customer satisfaction survey
Exchange of information during customer visit
Business partners Conduct transparent and fair trade Briefing for CSR Procurement
The concern for human rights, labor, safety, and environmental issues in global supply chain system CSR Procurement Audit
CSR Procurement Self-Assessment (CSR Questionnaire)
Compliance Hotline for suppliers
Employees Ensure labor, safety and hygiene issues in the workplace Internal Online Portal Site
Respect for human rights and eliminate discrimination Internal magazine
Human resources and talent development Employee survey
Respect for diversity Internal whistleblowing system (Compiance Hotline)
Agreement with labor union
Shareholders and investors Appropriate and fair profit returns Shareholders' meetings
Respect shareholders' voting rights Briefing of financial results from President and Board of Directors
Disclose relevant and fair financial information Visit overseas investors
Promote global IR activities Conferences and technology seminars held by stock and securities company for Institutional investors
Company briefing for individual investors
Annual Financial Report
Official IR Website
Society and local communities Leverage individual's skills and experiences that contribute to the society Social contribution activities
Response to NPO (CDP etc.) Answer to questionnaire surveys
Develop activities in response to issues differ from community to community Business trips for education activities
Receive company and factory visit requests from schools
Music support (Music foundation)

Dialogue with Customers

Dialogue with Customers
Exhibition etc.

Dialogue with Shareholders and Investors

Dialogue with Shareholders and Investors
Financial Results Briefing etc.

Dialogue with Employees

Dialogue with Employees
Work Style Reform Committee etc.

Dialogue with Business Partners

Dialogue with Business Partners
Partners Meeting etc.

Dialogue with Local Societies and Community

  • Dialogue with Local Societies and Community
    Receive company and factory visit requests from schools, etc.
  • Dialogue with Local Societies and Community
    Business trips for education activities, etc.
  • Due to COVID-19, we have been currently communicating online with our stakeholders.