Sustainability Priority IssuesROHM Group's Sustainability
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
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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
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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
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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 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 | Risk | Opportunity | Medium-term Goal | Theme |
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Strengthening Sustainable Technologies, Developing and Supplying Innovative Products |
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Contribution by developing energy-saving products and supplying them to the market |
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Contribution by developing and supplying miniaturized products | ||||
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Contribution by developing and supplying products pursuing functional safety | ||||
Mitigation of Climate Change |
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Reduction in GHG emission |
Reduction of energy consumption | |||||
Promotion of Introduction of renewable energy | |||||
Effective Use of Resources |
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Water resource consumption reduction |
Reduction of waste | |||||
Strengthening Employee Engagement |
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Foster a corporate culture that creates challenges |
Enhancement of job satisfaction | |||||
Improve employee engagement scores | |||||
Diversity Development |
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Promote women's active participation |
Global capacity development and personnel allocation | |||||
Ensuring the Health and Safety of Employees |
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Securing a safe workplace |
Promotion of health management | |||||
Enhancing Corporate Governance |
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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 |
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Strengthening BCM system |
Strengthening BCM system |
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Strengthening BCM System |
Promotion of green procurement | |||||
Promotion of CSR procurement activities | |||||
Strengthening Product Safety and Quality |
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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 | ||||
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[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. |
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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 | ||||
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[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. |
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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 | |||||
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[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. |
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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 |
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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 | ||||
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[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. |
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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 |
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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. |
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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 |
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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 | ||||
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[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. |
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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] Common management items: |
[Group Consolidated] Collecting employee career plans in the core human resources system and converting relevant information into data |
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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 | ||||
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[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. |
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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 |
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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 | ||||
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[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. |
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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
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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 | ||||
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[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. |
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Theme | Targets (Target Year: FY2025) |
Targets for FY2023 | FY2023 Results | Targets for FY2024 |
Strengthening BCM system | Strengthen BCM system through company-wide risk management |
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[Related Activities]
Sustainable Supply Chain Management | ||||
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[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. |
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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 | ||||
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[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. |
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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 |
(Reason: Improvement of "automotive response" and "change application" scores. The improvement activities that we have been focusing on are showing results)
All three items above are calculated from FY2020 figures |
Overall score: 7.5% improvement |
Realizing Proper Quality from the Customer's Perspective |
[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 |
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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 Shareholders and Investors

Dialogue with Employees

Dialogue with Business Partners

Dialogue with Local Societies and Community


Questionnaire