Sustainability Commitment
- From the Director in Charge -

Towards the Future that ROHM Aims for

As mentioned above, ROHM's business activities have been based on its unchanging corporate objective since its founding in 1954: "Quality is our top priority at all times. Our objective is to contribute to the advancement and progress of culture through a consistent supply, under all circumstances, of high quality products in large volumes to the global market." The reason for not mentioning how to contribute to the advancement and progress of culture was the founder's belief that it would not necessarily continue to produce electronic components.

In formulating our medium-term management plan, we believe that it is necessary to clarify what we mean by what we do from a long-term perspective. To this end, we first presented a statement entitled "Electronics for the Future," and as we envisioned our vision for 2030, we expressed our thoughts more concretely in our management vision. That is, "We focus on power and analog solutions and solve social problems by contributing to our customers’ needs for "energy saving" and "downsizing" of their products."

The "quality" stated in this Company Mission is not limited to the QCD (quality, cost, and delivery) of products and services but also includes the quality of overall corporate operations, in other words, the management quality. By promoting sustainability management with quality first, ROHM aims to be a company that is the choice of our stakeholders and can grow sustainably. To achieve this goal, we have established the ROHM Group Sustainability Policy, which clarifies the responsibilities to be fulfilled by each stakeholder, and the ROHM Group Basic Ethics Policy, which provides specific legal and ethical rules to be followed by employees and the entire ROHM Group complies with them.

ROHM has clearly separated management and executive roles from FY2022 and is strengthening its structure to promote sustainability management. The Sustainability Management Committee, established on the management side, works with the Board of directors to identify and discuss management issues at the group level, discusses high-level policies related to sustainability, and monitors the executive side. On the other hand, on the executive side, the EHSS General Committee has been established, and eight management systems (committees) have been set up under the EHSS General Committee to cover risk factors and implement the PDCA cycle for the improvement of sustainability issues.
Society's demands regarding sustainability issues, which include not only environmental and human rights issues but also enhanced disclosure of human capital, are increasing more than ever. Since we take the demands of society very seriously and are committed to promoting in-depth discussions and considerations, in July 2024, we appointed a new independent outside director who is an expert in sustainable finance to further strengthen the structure of the PDCA cycle. We will incorporate the priority issues discussed in this way into the executive side (EHSS General Committee and each management system) and work toward achieving the long-term goals we have set.

Promotion of the Achievement of Non-financial Targets in Medium-term Management Plan

The Medium-Term Management Plan, which has been in effect since FY2021, redefines the sustainability priority issues necessary for the sustainable growth of society and ROHM Group and sets specific achievement targets in the areas of environment, human capital, and governance.

In the area of environment, we have set a target of reducing greenhouse gas (GHG) emissions by 50.5% compared to FY2018 (Scope 1 and 2) by 2030, toward achieving virtually zero GHG emissions in 2050. We also obtained SBTi certification and are promoting the gradual introduction of renewable energy. In addition, we have been disclosing information based on the TCFD since 2022. Again, climate change is one of the World's most pressing social issues, and in order to achieve carbon neutrality, it is essential to reduce GHG emissions not only in the company itself but also in the entire supply chain (Scope 1, 2, and 3). In recent years, there has been an increasing number of requests from customers who are highly interested in sustainability to take initiatives at the supply chain level. In order for ROHM Group to become a major global player, it is important for us to aim for the sustainable development of society from the same perspective as our customers and suppliers. By working closely with all stakeholders and earnestly confronting and resolving issues, we will increase customer satisfaction, solve social problems, and ultimately achieve sustainable growth for both society and ROHM.

With regard to human capital, we believe that it is essential to acquire excellent human capital and develop them within the company in order to transform ourselves into a company that grows globally as a major global player, and that our human capital strategy should lead to the enhancement of corporate value as a result. We believe that two points are important in the formulation of a human capital strategy.

With regard to human capital, we believe that it is important to acquire excellent human capital and develop them within the company in order to transform ourselves into a company that grows globally as a major global player, and that our human capital strategy should lead to the enhancement of corporate value as a result. We believe that two points are important in the formulation of a human capital strategy.
The first one is a dialogue. No matter how much the company management communicates its desire to grow the business, it will not be understood unless all employees are highly engaged. We position dialogue as the basis of human capital management so that each employee can increase engagement and demonstrate their abilities.
The other one is the promotion of DE&I. In order to attract and retain the best global talent, it is essential to create a field in which diverse human capital can play an active role. In order to become a major global player, we believe that we have to create a strong organization in which diverse human capital is connected towards one goal. We plan to achieve this by enhancing the systems that enable diverse human talent to play an active role and by strengthening the incorporation of the company purpose into each employee. In this context, we have established an "employee engagement score above the industry average" as an achievement indicator. We conducted the survey twice at ROHM Head Office, in FY2021 and FY2023, and at the Group companies around the World, and we are striving to improve issues.

In the area of governance, we have increased the ratio of independent outside Board members, and from FY2022, outside directors have accounted for half of our Board members. We expect that the outside directors we have appointed this time will provide advice on how to realize management that integrates financial and non-financial aspects based on their rich experience in supporting business creation and support the creation of an environment in which diverse employees can take on new challenges.

ROHM Group will continue to actively invest in and promote initiatives that lead to sustainability management, thereby enhancing its intangible assets and building a solid foundation for growth. As a result, we will continue to generate CSV that fulfill the management axis of social value creation and corporate growth. Under this new sustainability management structure, the entire group will achieve its non-financial targets and, by extension, resolve sustainability priority issues, aiming to become a company that continues to be chosen by its stakeholders.

Koji Yamamoto
Member of the Board, Senior Corporate Officer,
in charge of SCM and Administration