Priority Issues（Materiality）

We visualize what we want to achieve in regard to the Priority Issues（Materiality）, for each of which we set specific targets, KPIs, and milestones. These are incorporated into the daily operations of each employee through each yearly policy.

Vision

(1) Sustainable Growth

Product development

●Pursuing zero-emission and carbon-neutral mobility through environmental technology innovation with automobile manufacturers
●Strengthening and evolving development and production capabilities for body structures and working with automobile manufacturers for weight improvement to reduce CO₂ emissions

Innovation

●Creating new values based on the core technology through cooperation with partner companies of different industries as well as industry-academia-government collaboration

(2) Sustainable Production

Productivity

●Contributing to the mitigation of global warming by setting CO₂ emissions reduction targets at all sites, systematically implementing efforts to reduce environmental impact, and achieving the targets
●Encouraging all sites to minimize energy, materials, subsidiary materials, water use and discharge, and scrap

Production efficiency

●Motivating employees to understand the meaning of their work, have awareness for making improvement at all times, and take on the challenge of increasing productivity through monozukuri by utilizing new technologies and information

Quality control

●Pursuing "zero defects" in all global plants by 2050, by building in quality at each of the processes including design, production preparation, manufacturing, and distribution

Safe workplace management

●Striving for zero accidents by establishing an OHSMS (Occupational Health and Safety Management System), with the safety of all employees being the first priority

Supply chain

●Aiming to achieve the SDGs together with suppliers throughout the supply chain while encouraging them to understand FUTABA's policies and activities

(3) Sustainable Management Foundation

Health promotion and active work by human resources

●Aiming to improve the happiness of employees by further promoting health management initiatives so that each and every employee can work happily, with joy, and with energy
●Accepting various human resources, bringing out their maximum potential, and realizing a workplace environment where they can work energetically and with a sense of reassurance

Contributions to local communities

●Creating job in and returning profits to local communities through business activities, such as recruitment and development of human resources for future monozukuri in each country and promotion of local manufacturing and procurement
●Aiming to become a company that is widely supported and loved by the local community by fulfilling the role of good corporate citizen

Governance

●Striving to prevent and mitigate risks related to business continuity as well as promptly responding to risks that arise in business activities, and thereby minimizing the impact of risks while increasing our corporate value
●Establishing a system that allows all parties involved to exchange information safely and securely and to cope with and recover from any unforeseen circumstances
●Complying with laws, regulations, and social norms through highly ethical corporate activities and aiming to be a corporate citizen trusted by the international community
●Building good relationships with each stakeholder, continuing to provide products that satisfy customers, and seeking sustainable growth and a long-term stable increase in our corporate value

Key Initiatives, Targets, Results and Others

(1) Sustainable Growth

Priority Issues（Materiality）1. Development of environment-friendly green mobility system

Key Initiatives

・Development and evolution of exhaust gas purification and sound dampening technologies
・Thorough downsizing and weight improvement of product

Main KPIs

・Net Sales proportion of eco-certified products to environmental products
（Vs. FY2018）

FY2022 Results

20.9% （forecast）

Mid- to Long-term Milestones and Targets

FY2025 20%
FY2030 50%

Related SDGs

Priority Issues（Materiality）2. Pursuit of light-weight body structure

Key Initiatives

Parts weight reduction utilizing ultra-high-tensile strength steel（UHTSS） technology
(1) During material production: Material usage reduction
(2) During parts production: Use of cold-stamped UHTSS and hot stamped steel for different purposes
(3) During vehicle motion: Parts weight reduction

Main KPIs

・Reduction of CO₂ emissions（t-CO₂/year）
（Vs. FY2020）

FY2022 Results

Total Down 4,216 t-CO₂/year
(1) During material production Down 1,034 t-CO₂/year
(2) During parts production Down 697 t-CO₂/year
(3) During vehicle motion Down 2,485 t-CO₂/year

Mid- to Long-term Milestones and Targets

（t-CO₂/year）

	During material production	During parts production	During vehicle motion	Total
FY2023	-331	-868	-754	-1,953
FY2025	-1,829	-4,561	-4,160	-10,550
FY2027	-3,314	-5,740	-7,540	-16,594

（Vs. FY2020）

Related SDGs

Priority Issues（Materiality）3. Creation of new values

Key Initiatives

・Electrification products Development of technologies to reduce CO₂ emissions / Response to energy diversification
・Development of products for the agricultural sector / Exploring new businesses possibilities toward a decarbonized society

Main KPIs

・ Creation of innovation to solve environmental and social issues

FY2022 Results

R&D underway

Mid- to Long-term Milestones and Targets

FY2030: Introduce new products to global markets

Related SDGs

(2) Sustainable Production

Priority Issues（Materiality）4. "Monozukuri" considering the impact on global warming and climate change

Key Initiatives

(1) Daily improvement, technological innovation, and utilization of renewable energy, credits, etc.
・Fuel switching for air conditioning heat sources (shift to electricity)
・Shift to multiple kinds of inverters（energy saving）
(2) Promotion of renewable energy utilization
・Introduction of solar power generation
・Purchase of CO₂-free electricity

Main KPIs

(1) CO₂ emission reduction rate at plants: Down 3.0%/year
・Non-consolidated: Vs. FY2013
・Group companies: Vs. FY2019
(2) Percentage of renewable energy used
（Vs. FY2020）

FY2022 Results

(1) Non-consolidated: Down 41.4%
(2) Non-consolidated: Launched solar power generation operation at Kota Plant Building No. 4
From August 2022 Generation of electricity equivalent to 440,000 Kwh
Non-consolidated: Purchase of non-fossil certificates
(equivalent to 1% of total non-consolidated electricity consumption: 1.3 million Kwh)

Mid- to Long-term Milestones and Targets

(1) FY2030 non-consolidated: Down 50% or more | Group companies: Down 33%

Related SDGs

Priority Issues（Materiality）5. Contributing to a circular economy by reducing waste, conserving resources and promoting recycling

Key Initiatives

(1) Steel usage reduction: Material yield improvement (Scrap fee revision)
(2) Oil usage reduction: Switch to electric forklifts, small electric vehicles, and AGV | Filtration and reuse of processed oil
(3) Industrial waste output reduction
(4) Defective product waste reduction: Scrap fee revision activities to reduce waste within the production process (minimize loss and waste)

Main KPIs

(1) Percentage reduction in steel usage: Down 0.5%/year
(2) Percentage reduction in oil usage: Down 1.0%/year
(3) Percentage reduction in industrial waste output: Down 1.0%/year
(4) Percentage reduction in defective product waste: Decrease to one-tenth in 10 years
　 Note:(1)(2)Vs. FY2019（per million yen of processing added value）(3) Vs. FY2019（total volume）(4) Vs. FY2020（total volume）

FY2022 Results

(1) Non-consolidated: Down 1.6%
(2) Non-consolidated: Down 29.9%
(3) Non-consolidated: Down 10.3%
(4) Non-consolidated: Down 50.5%

Mid- to Long-term Milestones and Targets

(％)

	(1) Percentage reduction in steel usage	(2) Percentage reduction in oil usage	(3) Percentage reduction in industrial waste output	(4) Percentage reduction in defective product waste
FY2025	-3.0	-6.0	-6.0	―
FY2030	-5.5	-11.0	-11.0	-90.0

Note:(1)(2) Vs. FY2019（per million yen of processing added value）(3) Vs. FY2019（total volume）(4) Vs. FY2020（total volume）

Related SDGs

Priority Issues（Materiality）6. Promotion of environmental management on a Group-wide and global basis

Key Initiatives

・Acquisition of ISO14001 certification at all production sites

Main KPIs

・Percentage of ISO14001 certifications acquired in all production sites

FY2022 Results

96%

Mid- to Long-term Milestones and Targets

FY2024: Complete acquisition at all production sites

Related SDGs

Priority Issues（Materiality）7. Improvement in productivity by improving production and operational efficiency

Key Initiatives

・TPS introduction activities（labor reduction, efficiency improvement, and volume improvement）
・Improvement of distribution within the premises
・Preventive maintenance activities

Main KPIs

・Productivity improvement rate: Up 3.0%/year
（Vs. FY2020）

FY2022 Results

Non-consolidated: 99.1% reduction (target: 106% of FY2020 level)
-Target not achieved due to reduced production during COVID-19 pandemic

Mid- to Long-term Milestones and Targets

FY2025: Up 15%
FY2030: Up 30%

Related SDGs

Priority Issues（Materiality）8. Improvement in quality of products and service

Key Initiatives

・Acquisition of IATF 16949 or ISO9001 certification for all production sites

Main KPIs

・Percentage of ISO16949 or ISO9001 certifications acquired in all production sites

FY2022 Results

73%

Mid- to Long-term Milestones and Targets

FY2025: Complete acquisition for all production sites

Related SDGs

Priority Issues（Materiality）9. Creation of safety-first workplace

Key Initiatives

・Establishment and implementation of a health and safety training system
・Risk assessment restructuring（plant）
・Establishment of an Occupational Health and Safety Management System
・Inspection of existing facilities and equipment of those before starting mass production
・Periodic review of regulations & safety standards for assembly equipment and stamping equipment

Main KPIs

・Annual number of industrial accidents and accident frequency rate （number of accidents / total actual hours worked x 1 million）
-Target disasters:For 12 domestic sites, accidents not accompanied by lost worktime（zero accidents that require time off from work or cause disabilities）
For 15 overseas offices, accidents that are not accompanied by lost worktime, require time off from work, and cause disabilities
-Serious disasters: Zero accidents at all sites

FY2022 Results

12 domestic sites
・Industrial accidents: 16
・Accident frequency rate: 1.39

Mid- to Long-term Milestones and Targets

12 domestic sites	Industrial accidents	Accident frequency rate
FY2025	10 or less	1.00 or less
FY2030	6 or less	0.60 or less

Related SDGs

Priority Issues（Materiality）10. Establishment of sustainable supply chain

Key Initiatives

(1) Solid implementation of CSR and green procurement policies by suppliers
(2) Support for suppliers in quality, safety, etc. and development of related systems
(3) Identification and minimization of resources used by suppliers
(4) Development and sharing of examples of SDGs activities by suppliers

Main KPIs

(3) Percentage reduction in CO₂ emissions of suppliers　Down 3.0%/year (vs. FY2021)

FY2022 Results

(3) Non-consolidated suppliers: Down 6.0%

Mid- to Long-term Milestones and Targets

(3) FY2030 Non-consolidated suppliers: Down 27%

Related SDGs

(3) Sustainable Management Foundation

Priority Issues（Materiality）11. Promotion of health management

Key Initiatives

(1) Specific support for the establishment of healthy lifestyle habits

1) Proactive support for improvement in abnormal findings
2) Promotion of no-smoking

(2) Decreased number of persons with mental health problems

Main KPIs

1) Percentage of BMI 25 or higher
2) Percentage of male smokers

Percentage index of persons with mental health problems（who are absent from work for one month or more）
（Vs. FY2020）

FY2022 Results

1) 30.2%
2) 34.1%

1.23

Mid- to Long-term Milestones and Targets

	Specific support for the establishment of healthy lifestyle habits		Percentage index of persons with mental health problems(who are absent from work for one month or more)
	Percentage of BMI 25 or higher	Percentage of male smokers
FY2025	25.0%	33.1%	0.61
FY2030	20.0%	27.8%	0.41

Related SDGs

*Group companies set their own targets
*"Main KPIs," "FY2022 Results," and "Mid- to Long-term Milestones and Targets" are on a non-consolidated basis.

Priority Issues（Materiality）12. Contributions to and coexistence with local communities

Key Initiatives

(1) Business activities

Job creation and return of profits to local communities

(2) Social activities

Global activities in three priority areas（environmental protection, community activity, and human resource development）

Main KPIs

Achievement of business plans at all Group companies

Global contributions in three priority areas

FY2022 Results

Completed preparation of business plans at all Group companies

Completed global activities and policies in three priority areas

Main activities: Repair and renovation of local school facilities, aid for areas struck by disaster, and monozukuri classes for elementary school students

Mid- to Long-term Milestones and Targets

Achieve business plans at all Group companies in each fiscal year

Promotion systems and programs are in place at all sites, and voluntary activities by employees have taken root.

Related SDGs

*Group companies set their own targets in the three key areas in (2)

Priority Issues（Materiality）13. Active work by diverse human resources and human resource development

Key Initiatives

(1) Promoting diversity

・Enhancement of diversity of new hires
・Promotion of female empowerment

(2) Creating a pleasant workplace

・Improvement of work-life balance

Main KPIs

1) Ratio of female management positions
2) Percentage of new female graduates hired in administrative and technical positions
3) Percentage of employees with disabilities

1) Paid annual leave taken
2) Turnover rate

FY2022 Results

1) 1.1%
2) 19.4% (joined in April 2023)
3) 2.7%

1) 18.6 days
2) 2.5%

Mid- to Long-term Milestones and Targets

1) FY2025: 3% or more | FY2030: 5% or more
2) FY2025: 20% | FY2030: 30% or more
3) Above statutory employment rate (FY2022 statutory employment rate: 2.3%)

1) FY2025: 18.5 days or more | FY2030: 20 days
2) FY2025-2030: Maintain 2% or less

Related SDGs

*Group companies set their own targets
*"Main KPIs," "FY2022 Results," and "Mid- to Long-term Milestones and Targets" are on a non-consolidated basis.

Priority Issues（Materiality）14. Governance

Key Initiatives

(1) Risk management

1) Promotion of operational quality improvement activities
(functions, projects, and manufacturing)
2) Development of organization, infrastructure, and recovery system to ensure information security based on DX
3) Establishment of a system for promoting confidentiality management, and achievement of ATSG requirements

(2) Corporate ethics/compliance

Establishment of a system and mechanism to confirm compliance with laws and regulations related to business activities at a higher level

Main KPIs

1) Percentage progress of operational quality improvement activities
2) Percentage of CSIRT systems in place SOC adoption rate
3) Percentage of systems for promoting confidentiality management in place
Percentage of ATSG requirements achieved

ー

FY2022 Results

1) 85%
2) CSIRT: 100% （system in place）
SOC Domestic 75% / Overseas 44%
3) Confidential management promotion system 100%（completed in FY2021）
ATSG: Non-consolidated 81% / Domestic 49% / Overseas 57%

Domestic Completed monitoring and follow-up on implementation status

Overseas Completed establishment of systems in response to revisions

Mid- to Long-term Milestones and Targets

1) FY2023: Complete operational quality improvement activities, start operation, and normalize it
2) CSIRT: FY2022 100%
SOC: Domestic FY2023, Overseas FY2024 100%
3) ATSG: Domestic FY2023, Overseas FY2025 100%

Domestic Monitor and follow up on implementation status for FY2022

Overseas Establish systems in response to revisions for FY2022
FY2023: Monitor and follow up on implementation status

Related SDGs