Yamamoto

In order for ROHM to become a global major company, sustainability management is essential to earn the trust of our customers and other stakeholders. I was appointed CSO(Chief sustainability Officer) in April 2023, and I believe that the role of CSO is to improve the quality of management by achieving non-financial targets while aiming to become a company that can sustainably create values. In recent years, not only in the corporate sector but also in the business sector, which represents the front line, there has been an increasing demand for sustainability from customers and the importance of cooperation with suppliers. With this background in mind, I believe that appointing Ms. Muramatsu, who has a deep knowledge of sustainability management, as an outside director will provide an impetus for incorporating sustainability issues into our management strategy and promoting in-depth discussions and deliberations.

Muramatsu

Sustainability has been inherent in ROHM's corporate philosophy and raison d'etre since the company's founding, and I believe that ROHM is a company that is committed to CSR and sustainability management, updating its practices in line with the times. In particular, the electronic components industry, including the supply chain, operates under global standards, and among Japanese companies, it is leading in environmental and risk management. After working for a foreign semiconductor manufacturer for 25 years, I have been involved in introducing sustainability management and creating healthy organizations within Japanese companies for more than ten years. Based on my experience in both areas, I feel that the world's values are changing at an accelerated pace and that the axis of corporate evaluation is also changing. ROHM has well-developed systems and structures in place, but we need to be more proactive and aim for the standards of advanced companies, as we will fall behind the global market if we only watch developments in Japan in dealing with customers and suppliers. I believe that ROHM must find a way to show its strength in the context of global standards.

Muramatsu

I have participated in every Sustainability Management Committee meeting since I took office last June. Sustainability issues are discussed at board meetings, but in order to have a sufficient discussion, four directors must have a common understanding of sustainability issues and a sense of responsibility. Right now, in order to expand decision-making and management, we are at the stage where the executive directors are first deepening their understanding and discussing a variety of topics every month. All six internal directors participate in these lively discussions, where I can frankly express my opinions, even harsh ones at times. In the future, I would like to monitor and provide advice on how information from this committee is shared with the Board of Directors, whether it is fulfilling its function as an advisory body, and whether it is being expanded to the EHSS General Committee.

Yamamoto

Our current mid-term management plan sets non-financial targets such as addressing climate change and strengthening employee engagement. The targets for environmental goals are set for FY2030, but we have also set an interim target for FY2025, and we are firmly on track to achieve these goals by expanding TCFD information disclosure and promoting the introduction of renewable energy. CSR procurement with consideration for the environment and human rights includes self-assessment, and we are promoting efforts such as setting annual targets and conducting audits while surveying suppliers. We actively encourage companies with low evaluations to work with us to improve their performance.

Yamamoto

Regarding what you have just said, we would like to understand the relevance to our business and involve the entire company in the process. For other non-financial issues, the ratio of global female managers is 12.6% as of FY2022, well on track for the FY2025 target of 15%, and the same goes for the customer quality satisfaction score. Employee Engagement Score surveys have already been conducted by overseas affiliates in 2022, and ROHM plans to conduct a second survey within FY2023. Human capital initiatives are usually led by the Human Resources Department, but we believe that they should be promoted with the involvement of business units and other sections in the first place. The Sustainability Management Committee plans to study and discuss these issues, and Ms. Muramatsu has indicated that a different perspective may be necessary.

Muramatsu

Human capital is often discussed as a theme at Board of Directors meetings and Sustainability Management Committee meetings. Human capital measures have been implemented by the head office Human Resources Department and by each department, but in order to maximize synergy as ONE ROHM, I feel that it is necessary to build a foundation once again and accelerate strategic initiatives on a global level regarding diversity, human capital strategy, and organizational development. We are currently discussing this with the Sustainability Management Committee and the Board of Directors.

Yamamoto

As a human resource strategy, we would like to create a system that allows each employee to develop their career and abilities with a sense of autonomy, which will also lead to the growth of management. The Job Posting System, newly established in FY2022, allows for in-house disclosure and public posting of job offers from each department so that employees can voluntarily apply for and meet new challenges.

Muramatsu

I believe that our goal is exactly as Mr. Yamamoto described. ROHM has so far grown by manufacturing quality products that suit Japanese society and business and improving production efficiency. For ROHM to achieve sustainable growth under the rapidly changing social and economic conditions worldwide, the key will be an organizational structure and management that allows each of our diverse global human resources to maximize their capabilities and function as one team.
Understanding human capital and promoting human resource strategies has become an important issue for companies. Under the leadership of President Matsumoto, ROHM is currently working to increase organizational diversity and transform itself into a corporate culture that takes on new challenges, but I believe that further progress is needed.

Yamamoto

We expect our outside directors to bring their expertise into the areas of ESG and sustainability, and in 2022 we will further increase the ratio of independent outside directors to make up a majority of our board. In the future, we plan to introduce external evaluations to further strengthen the effectiveness of the Board of Directors.

Muramatsu

At the Board of Directors meetings, outside directors provide advice on how to advance sustainability management based on their respective expertise, with Mr. Nagumo speaking from his experience in global management and Mr. Kenevan from another different perspective in the field of ESG. Through the practice of sustainability governance, I expect that the directors and employees will become more aware of the importance of the parties involved and realize that ESG and sustainability are essential elements of the ROHM Group's business and lead to the enhancement of corporate value.

Yamamoto

I believe there is much room for ROHM to advance its sustainability management. With the advice of Ms. Muramatsu and the other outside directors, I would like to continue to actively invest in initiatives that lead to sustainable management and build a strong management foundation to create social value and achieve corporate growth.

Muramatsu

Today, companies are strongly challenged in their ability to respond to changes, social responsibility, and accountability. I would like to contribute to establishing highly effective sustainability governance to meet the expectations of all stakeholders, including shareholders, and fulfill my responsibilities as an outside director toward the sustainable enhancement of ROHM's corporate value.