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Identifying Sustainability Priority Issues

Background of Re-identification of Sustainability Priority Issues

ROHM Group aims to solve environmental and social issues in the future and to be a company that continues to be chosen by stakeholders. In April 2021, we established the "ROHM Group Environmental Vision 2050" and declared our commitment to carbon neutrality and zero emissions.
In addition, we have re-identified the key sustainability issues necessary for the sustainable growth of society and ROHM, and have set specific achievement indicators to be achieved from a medium-term perspective as non-financial targets in the "Moving Forward to 2025" medium-term management plan.
By working toward the achievement of the sustainability issues necessary to realize the ideal vision and the medium-term management plan, we will work toward sustainable growth for 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 the Group's corporate philosophy, behavioural guidelines and business model, the Group identifies candidate priority issues based on international CSR guidelines such as ISO 26000, GRI Standards, Sustainable Development Goals (SDGs) and ESG assessment results from globally representative ESG assessment organizations such as DJSI, MSCI, FTSE, and Sustainalytics.

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 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.

1. Strengthening Sustainable Technologies, Developing and Supplying Innovative Products
2. Mitigation of Climate Change
3. Effective Use of Resources
4. Strengthening Employee Engagement
5. Diversity Development
6. Ensuring the Health and Safety of Employees
7. Enhancing Corporate Governance
8. Risk Management
9. Sustainable Supply Chain Management
10. Strengthening Product Safety and Quality

STEP4 : Approval

Approved by the CSR Committee (at that time)^*, consisting of all directors and other responsible persons with equivalent authority.

April 2022 onward: EHSS General Committee

Sustainability Management System

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	Risk	Opportunity	Medium-term Goal	Theme
Strengthening Sustainable Technologies, Developing and Supplying Innovative Products	・Decline in sales due to stagnation in development of products that contribute to energy saving and miniaturization ・Intensifying competition in the development of energy-saving and compact devices ・Decrease in market share due to rise of competition including from emerging countries ・Intensifying competition in development of energy-saving and compact devices ・Decline in quality due to failure to meet customer quality requirements	・Rising demand for electronic components due to the expansion of new vehicle sales in the xEV (electric vehicle) market ・Expanding sales to the industrial equipment market, such as solar panels, due to the introduction of renewable energy. ・Increase in the number of electronic components installed due to the growing need for energy saving and the increasing sophistication of electronic devices.	・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
			・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
			・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	・The introduction of a mandatory GHG emissions reduction program and a carbon tax based on GHG emissions*. ・Adverse effects on the environment due to insufficient management of chemical substances	・Increased demand for electronic components due to the expansion of new vehicle sales in the xEV (electric vehicle) market. ・Expanding sales to the industrial equipment market, such as solar panels, due to the introduction of renewable 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
				Reduction of energy consumption
				Promotion of Introduction of renewable energy
Effective Use of Resources	・Soaring material prices and restrictions on production activities due to resource shortages (rare metals, water, etc.)	・Cost reduction through waste reduction, recycling, and review of energy supply sources ・Creation of brand value as a company with advanced environmental measures	・Build a business foundation that leads to recycling-oriented management	Water resource consumption reduction
Effective Use of Resources				Reduction of waste
Strengthening Employee Engagement	・Increased competition to secure human resources, sluggish retention rate ・Decline in human resource capacity due to delay in reforming the old personnel system and corporate culture	・Improve organizational strength by increasing employee engagement ・Attracting and retaining talented human resources ・Improve productivity by enhancing employee competence and autonomy	・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	・Increased competition to secure human resources, sluggish retention rate ・Decline in human resource capacity due to delay in reforming the old personnel system and corporate culture	・Attracting and retaining excellent human resources ・Strengthen competitiveness by promoting diversity management	・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
Diversity Development				Global capacity development and personnel allocation
Ensuring the Health and Safety of Employees	・Negative impact on employees due to occupational accidents and occupational illnesses ・Decreased employee engagement due to lack of improvement in the working environment	・Improve productivity by improving the working environment ・Securing and motivating human resources	・Realize a work environment in which employees can work safely and in good physical and mental health	Securing a safe workplace
Ensuring the Health and Safety of Employees				Promotion of health management
Enhancing Corporate Governance	・Scandals due to violations of laws and regulations, corporate ethics, etc. ・Stricter management evaluation by shareholders due to increase in ESG investment, etc.	・Ensure management stability through a strong financial base and respond appropriately to changes in the business environment ・Improve transparency of decision-making by establishing a strong governance structure	・Build a solid management foundation to increase corporate value	Secure diversity of the Board of Directors
				Review of compensation system to improve medium-to long-term corporate value
				Secure the effectiveness of management
Risk Management	・Increase in large-scale disasters (e.g., earthquakes, floods, typhoons, fires) ・Delayed response to information leaks and cyber attacks due to security breaches ・Legal lawsuits such as infringement of patents and other intellectual property rights held by other companies	・Achieve business continuity and growth by establishing a risk management system that responds to changing risks.	・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 system
Strengthening BCM system	・Stable supply to customers due to outages or reduced capacity utilization of production bases ・Suspension of transactions with overseas companies or suspension of supply of materials such as rare metals due to changes in international conditions ・Noncompliance due to human rights violations in the supply chain or procurement of banned substances	・Resilience through sustainable raw material procurement	・Work with partner companies to build a supply chain that can respond to unprecedented situations and provide society with high-quality products	Strengthening BCM System
				Promotion of green procurement
				Promotion of CSR procurement activities
Strengthening Product Safety and Quality	・Quality problems and customer defection due to inadequate quality control system ・Loss of credibility due to violations of laws and regulations	・Improve customer satisfaction through thorough safety and quality control ・Expand sales opportunities by offering new products that meet customer needs	・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
Strengthening Product Safety and Quality				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 Activities] 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	Targets (Target Year: FY2025)	Targets for FY2023	FY2023 Results	Targets for FY2024
Contribution by developing energy-saving products and supplying them to the market	Achieve sales amount of 600 billion yen or more* with sales as the total amount of social contribution *Updated from the original target of 470 billion yen or more to 600 billion yen or more	540 billion yen	467 billion yen	480 billion yen
Contribution by developing and supplying miniaturized products
Contribution by developing and supplying products pursuing functional safety

[Related Activities]

Mitigation of Climate Change
[Background and Challenges for Activities] 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	Targets (Target Year: FY2030)	Targets for FY2023	FY2023 Results	Targets for FY2024
Reduction in GHG emission	Reduce GHG by 50.5% in 2030 compared to FY2018	15.0% or more (compared to previous year) 33.6% or more (compared to FY2018)	16.5% (compared to previous year) 34.9% (compared to FY2018)	Reduction of 1.0% or more from the previous year's result Reduction of 35.6% or more from FY2018 results
Reduction of energy consumption	Reduce per-unit emissions by 45.0% by 2030 compared to FY2018	14.0% or more (compared to previous year) 47.2% (compared to FY2018)	Over 9.6% (compared to previous year) 44.5% (compared to FY2018)	Limit the increase to 6.9% over the previous year's result Reduction of 40.7% or more from FY2018 results
Promotion of Introduction of renewable energy	Promote the conversion to renewable energy with the aim of achieving a 100% introduction ratio by 2050	43.0% or more	43.0%	44.2%

[Related Activities]

Effective Use of Resources
[Background and Challenges for Activities] 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	Targets (Target Year: FY2030)		Targets for FY2023	FY2023 Results	Targets for FY2024
Water resource consumption reduction	Water recovery and reuse rate by 5.5% compared to FY2019		Improve by more than 1.0% (compared to previous year) Improve by more than 1.9% (compared to FY2019)	Improved by more than 1.5% (compared to previous year) Improve by more than 2.4% (compared to FY2019)	Improve by more than 0.5% over the previous year's result Improve by more than 2.9% over FY2019 results
Reduction of waste	Aim for zero emissions (recycling rate of 99.0% or more) on a consolidated basis in Japan and overseas	Japan Consolidated	Zero emissions	Zero emissions achieved	Maintain zero emissions
		Overseas consolidated	95.0% or more	95.8%	95.0% or more
		Domestic and Overseas	Over 98.0%	98.5%	98.0% or more

[Related Activities]

Strengthening Employee Engagement
[Background and Challenges for Activities] 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	Targets (Target Year: FY2025)	Targets for FY2023	FY2023 Results	Targets for FY2024
Foster a corporate culture that creates challenges	Establish a system to train world-class next-generation leaders and professionals	Expanding the scope of the job-based personnel system to provide more strategic and competitive treatment	・Introduced a remuneration system for certain levels of employees that benchmarks not only internal hierarchy and fairness, but also external remuneration levels ・Introduction of programs to send students to MBA (Master of Business Administration)	Developing next-generation leaders through global trainee programs and MBA (Master of Business Administration) programs that enable employees to think from a global perspective and challenge the unknown
Enhancement of job satisfaction	①Provide selective services that are adapted to employee orientation and lifestyles under the new normal conditions	Introduction of GLTD (Group Long Term Disability Insurance)	Completed introduction of GLTD (Group Long-Term Disability Income Compensation Insurance)	With the keyword "subjective view of health" (≒"Creating one's own health"), we will develop health maintenance and promotion activities that maximize performance, rather than merely promoting health.
	②Clarify job descriptions concerning job openings in each department to maximize performance by eliminating post-assignment mismatches	Expand the scope of the job posting system, introduce referral recruitment, and increase the number of foreign nationals.	・Job posting system: Approximately 50 employees were transferred to the department of their choice. In addition, transfers to overseas group companies were also possible. ・Referral hiring: Some employees were hired using referrals. ・Human capital from overseas: Transferring employees from overseas group companies.	Maximize organizational performance by establishing a structure to support the resolution of human resource issues at each headquarters.
	③Establish 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	Collect data across the Group and deploy the HR core system to Group companies, including those overseas	[Group Consolidated] Completed implementation of human resource management systems for two domestic group companies and one overseas group company.	[Group Consolidated] Collecting employee career plans in the core human resources system and converting relevant information into data
Improve employee engagement scores	Initiate engagement survey in entire group, improve annual scroes and achieve employee engagement score at or above industry average	Improve the engagement score at the Head Office	The second engagement survey was conducted at the Head Office. The Sustainable Engagement Score was 75, down one point from the previous survey.	[Group Consolidated] Consider and implement measures to further improve engagement in anticipation of the third Head Office and the second group company in 2025

[Related Activities]

Diversity Development
[Background and Challenges for Activities] 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	Targets (Target Year: FY2025)	Targets for FY2023	FY2023 Results	Targets for FY2024
Promote women's active participation	Increase global female manager ratio to 15.0% by 2025 and to 20.0% by 2030	12.9%	13.0%	13.7%
Global capacity development and personnel allocation	①Establish a human capital development system for ROHM Group	Expand selective training programs and expand them to some domestic Group companies as opportunities for employees to actively, selectively, and self-deterministically develop their careers	[Group Consolidated] The number of participants more than doubled from the previous year to about 1,300, thanks to the expansion of elective training programs. Some of the programs were open to participation from domestic Group companies, and about 70 of the total participants came from domestic Group companies.	[Group Consolidated] Provide career paths for growth-oriented employees and motivate them to realize life and career plans through their work
	②Integrate the mixed human resources system and deploy it as a global system within the Group to promote the enhancement of career planning, appropriate human resource allocation, and the management and promotion of diverse human resources	In addition to the deployment of the HR Core System to overseas Group companies, begin to build a foundation for human capital information disclosure by establishing common management items.	[Group Consolidated] Started system packaging with a view to expanding to overseas group companies. Common management items: Common management items are set up at locations where the system is installed, contributing to the understanding of personnel data.	[Group Consolidated] Collecting employee career plans in the core human resources system and converting relevant information into data
	③Accumulate strategic data on evaluation, compensation, promotion and placement	Update selection, dismissal, compensation, and contract management of group company directors from a governance perspective	[Group Consolidated] Conducted job evaluations and prepared job descriptions for global executive positions	Visualize career paths for employees aiming to become global leaders based on the "Succession Survey" and "Next Generation Selection Program" at the Head Office

[Related Activities]

Ensuring the Health and Safety of Employees
[Background and Challenges for Activities] 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	Targets (Target Year: FY2025)	Targets for FY2023	FY2023 Results	Targets for FY2024
Securing a safe workplace	Achieve and maintain "0" in the number of lost time accidents in ROHM Group	"0" lost time injuries	Number of Accidents resulting in 4 or more days of absence: 5	Number of Serious accidents: 0 Cases in which it is judged that there is a possibility of death or physical loss or disability, and cases in which hospitalization is required.
Promotion of health management	①Establish a ROHM Group-wide health management promotion system	Promote health management at group companies in Japan	[Group Consolidated] Declaration of health and productivity management and policy deployment to domestic group companies	[Group Consolidated] Set targets and implement initiatives to improve at least one of the Health Up Challenge 7*1 items at Group companies in Japan.
	②Improved health through Health Up Challenge 7 (65% or more of employees complete at least four items)	Employees who achieved at least two of the three key items (sleep, stress, exercise) of the Health Up Challenge 7^*1 improved by 10.0% or more compared to the previous year.	The number of employees who achieved 2 or more of the 3 key items (sleep, stress, exercise) of the Health Up Challenge 7^*1 improved by 12.6% (from 63.0% to 75.6%) compared to the previous year.	Health Up Challenge 7^*1 Improvement of Sleep and Exercise Being well rested from sleep: 48.4% or more regular exercisers: 72.0% or more
	③Address presenteeism by improving mental and physical health	Promote health maintenance and initiatives to address presenteeism^*2.	Calculated labor productivity loss rate due to presenteeism^*2 while implementing initiatives to maintain and promote health (36.2%)	Improved the labor productivity loss rate due to presenteeism^*2 from the previous year (below 36.2%)

1 Health Up Challenge 7: A program that aims to improve presenteeism and achieve well-being by having each person work to clear as many of the seven health-related items as possible: sleep, stress, exercise, diet, alcohol consumption, smoking cessation, and communication.

2 Presenteeism: a state of being at work but with reduced productivity due to mental or physical illness.

[Related Activities]

Enhancing Corporate Governance
[Background and Challenges for Activities] 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	Targets (Target Year: FY2025)	Targets for FY2023	FY2023 Results	Targets for FY2024
Secure diversity of the Board of Directors	Increase the female or foreign national officer ratio at Head Office to 10%	Maintain or increase the percentage of female and non-Japanese directors on the Board of Directors	Maintained 23% in total ・Percentage of female directors: 15% ・Percentage of non-Japanese directors: 8%	Maintain or increase the percentage of female and non-Japanese directors on the Board of Directors
Review of compensation system to improve medium-to long-term corporate value	①Increase the number of independent outside directors to a majority of the board of directors	Maintain or increase the percentage of independent outside directors on the Board of Directors	54%	Discussion on the ideal form of board of directors to enhance medium- to long-term corporate value
	②Introduce a compensation system linked to the Medium-term management plan (financial and non-financial targets)	Conduct a comprehensive review of the balance and level of the compensation structure, including the directors' shareholding ratio and the holding period of the company's shares	Continued director remuneration council discussions on the structure of remuneration and the form of Board members' hold of the Company's shares	Continued comprehensive discussions at the director remuneration council, including the remuneration system and the desirable form of stock ownership by the Board members
Secure the effectiveness of management	Evaluate the effectiveness of the Board of Directors once every three years	Continue to provide support by an external organization for the effectiveness evaluation	The target was achieved in FY2022 with the start of the introduction of external institutional evaluation. In order to further improve the effectiveness of the evaluation, the use of an external organization will be continued in the effectiveness evaluation to be conducted in March 2024. In addition, the scope of support will be expanded to the stage of setting evaluation questionnaires to ensure further transparency and objectivity in the evaluation results	Continue to utilize support from external organizations in the effectiveness evaluation, and improve quality, not only by reviewing questionnaire methods and question content, but also by considering how to utilize external organizations

[Related Activities]

Risk Management
[Background and Challenges for Activities] 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	Targets (Target Year: FY2025)	Targets for FY2023	FY2023 Results	Targets for FY2024
Strengthening BCM system	Strengthen BCM system through company-wide risk management	・Continuation of activities implemented in FY2022 ・Build a more robust risk management system in coordination with each management system of the EHSS General Committee ・Implement initiatives to raise awareness of fire and disaster prevention among all employees ・Establishment of a fire risk assessment system to prevent fires	・The Risk Management and BCM Committee, which meets quarterly, identifies and evaluates the Group's risks and confirms the status of countermeasures, and reports on major risks to the EHSS General Committee, which meets half-yearly. ・Monitoring of signs of risk occurrence and progress of countermeasures. ・Conducted BCM training based on the assumption of the Nankai Trough earthquake, identifying issues in the event of a disaster and linking this to the update of the BCP. ・Conducted remote risk surveys focused on fire and water damage at major domestic and overseas manufacturing locations in Japan to confirm the status of fire and water damage risk response ・Visited domestic and overseas group companies to conduct internal audits on fire and disaster prevention ・Clean Room Fire Risk Assessment formulated to strengthen fire prevention activities for production equipment was deployed to ROHM Group's domestic and overseas manufacturing sites and put into operation. ・Gathering information, monitoring, and implementing countermeasures to respond to heightened geopolitical risks	・Continuation of activities implemented in FY2023 ・Updating the Group's risk management regulations to the latest status ・Conduct Nankai Trough earthquake simulation drills at domestic group companies ・Create and deploye the Three Fire Risk Assessments as a group-wide tool to strengthen fire prevention activities not only for production equipment, but also for major electrical equipment and high temperature equipment in production areas, ancillary areas, and other workplaces

[Related Activities]

Risk Management

Sustainable Supply Chain Management
[Background and Challenges for Activities] 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 management system with all suppliers surrounding the ROHM Group 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	Targets (Target Year: FY2025)	Targets for FY2023	FY2023 Results	Targets for FY2024
Strengthening BCM System	①Purchasing ratio of 90% or more from suppliers who have completed comprehensive evaluation of supplier activities	80.0% (Consolidated)	87.5%	90.0%
	② 100% survey of manufacturing sites of Tier-1 suppliers	60.0% (Consolidated)	71.0%	80.0%
	③100% prior agreement rate for emergency response of critical suppliers	60.0% (Non-consolidated)	78.0%	80.0%
Promotion of green procurement	Environmental management system self-evaluation pass rate 100%	96.0% (Consolidated)	92.8%	96.0%
Promotion of CSR procurement activities	90% or more of purchases from suppliers with CSR Self-Assessment result of B or higher	80.0% (Consolidated)	80.6%	85.0%

Targets ① and ② were established on a non-consolidated basis until FY2022, and the scope of targets was revised to include group-level targets starting in FY2023.

[Related Activities]

Strengthening Product Safety and Quality
[Background and Challenges for Activities] 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	Targets (Target Year: FY2025)	Targets for FY2023	FY2023 Results	Targets for FY2024
Establishment and consolidation of quality assurance system through front loading	Quality Satisfaction Score +10.0% Improvement (compared to FY2020)	Overall score: 5.0% improvement	・Overall score from customers: 4.5% improvement ・Rate of "satisfied" and "somewhat satisfied" responses: 7.0% improvement (Reason: Improvement of "automotive response" and "change application" scores. The improvement activities that we have been focusing on are showing results) ・The response rate for "unsatisfactory" and "somewhat unsatisfactory": worsened by 0.6%. All three items above are calculated from FY2020 figures	Overall score: 7.5% improvement
Realizing Proper Quality from the Customer's Perspective		Overall score: 5.0% improvement		Overall score: 7.5% improvement

[Related Activities]

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 Approach to Quality	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
	Meet potential requirements of customers	Exchange of information during customer visit
Business partners Supply Chain Management	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 Human Capital Management	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)
	Respect for diversity	Agreement with labor union
Shareholders and investors Communication with 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 ROHM Group’s Social Contribution	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)