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

●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）

FY2023 Results

40.9%（forecast）
*Anticipatory response to OEM fuel efficiency and emissions regulations

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）

FY2023 Results

Total: Down 4,988 t-CO₂/year
(1) During material production: Down 2,012 t-CO₂/year
(2) During parts production: Down 1,359 t-CO₂/year
(3) During vehicle operation: Down 1,617 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

FY2023 Results

R&D underway
*Steady progress in development, starting on new development themes

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
・Fuel switching for air conditioning heat sources (shift to electricity)
・Shift to multiple kinds of inverters（energy saving）
(2) Utilization of renewable energy, credits, etc.
・Introduction of solar power generation
・Purchase of CO₂-free electricity

Main KPIs

(1) CO₂ emissions reduction rate for plant: Down 4.6%/year
（Vs. FY2019）
(2) Percentage of renewable energy used
（Vs. FY2020）

FY2023 Results

(1) Non-consolidated: Down 36.6%
(2) Non-consolidated: Equivalent to 1% of actual usage (solar power generated at Kota Plant Building No.4)
Non-consolidated: Purchase of non-fossil certificates
(equivalent to 1% of total non-consolidated electricity consumption)

Mid- to Long-term Milestones and Targets

(1) FY2030 : Down 50% or more
(2) FY2030 Non-consolidated: Renewable energy ratio: 60%
*Added (2) as a target

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) Waste output reduction
(4) Defective product waste reduction: Scrap fee revision activities to reduce waste within the production process (minimize loss and waste)
(5) Reduction of water intake: Activities for reducing water intake (minimization through recycling utilization)

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 waste output: Down 1.0%/year
(4) Percentage reduction in defective product waste: Decrease to one-tenth in 10 years
(5) Rate of water intake reduction: Down 0.5%/year

(1)(2)Vs. FY2019（per million yen of processing added value）(3) Vs. FY2019（total volume）(4) Vs. FY2020（total volume）(5) Vs. FY2020

FY2023 Results

(1) Domestic: Down 2.4%
(2) Domestic: Down 47.8%
*Increase in processing value
(3) Domestic: 3.7%
*Waste alkali generated by groundwater inflow into stamping pits
(4) Non-consolidated: Down 52.5%
*Standardization of manufacturing management
(5) Domestic: 6.8%
*(1)(2)(3) Expansion of scope (non-consolidated ⇒ domestic)

Mid- to Long-term Milestones and Targets

(％)

	(1) Percentage reduction in steel usage	(2) Percentage reduction in oil usage	(3) Percentage reduction in waste output	(4) Percentage reduction in defective product waste	(5) Rate of water intake reduction
FY2025	-3.0	-6.0	-6.0	―	-2.5
FY2030	-5.5	-11.0	-11.0	-90.0	-5.0
FY2050	―	―	Minimization	―	-15

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

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

FY2023 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）

FY2023 Results

Non-consolidated: 104%
(target: 109% of FY2020 level)
*Impact of customer shutdowns and delays in transitions from trial production to mass production stage.

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

FY2023 Results

73%

Mid- to Long-term Milestones and Targets

FY2026: Complete acquisition at all production sites
*Target year changed from FY2025 to FY2026.

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

FY2023 Results

12 domestic sites
・Industrial accidents: 16
・Accident frequency rate: 1.32
*Increase in the number of accidents involving falls

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

(1) Percentage reduction in CO₂ emissions of suppliers: Down 4.6%/year
（Vs. FY2019）

FY2023 Results

(1) Non-consolidated suppliers: Down 6.8% (forecast)
*Under verification

Mid- to Long-term Milestones and Targets

(1) FY2030 Non-consolidated suppliers: Down 50% or more

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）

FY2023 Results

1) 28.1%
2) 33.0%
*Issue of employee health awareness

1.37
*Lack of improvement in the workplace environment, depression related to COVID-19, etc.

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," "FY2023 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

Global deployment in three key areas (environmental protection, community activity, and people development)
*Business activities omitted (activities will continue)

Main KPIs

Global contributions in three key areas

FY2023 Results

Global implementation in three key areas
Main activities: Construction of facilities and installation of equipment in the community, forest cleanup activities, and monozukuri classes for elementary school students

Mid- to Long-term Milestones and Targets

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

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

Key Initiatives

(1) Promoting diversity

1) Promotion of female empowerment
2) Enhancement of diversity of new hires
3) Promotion of employment of persons with disabilities

(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

FY2023 Results

1) 1.3%
2) 20.0% (joined in April 2024)
3) 2.7%

1) 18.5 days
2) 2.3%

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 (FY2023 statutory employment rate: 2.5%)

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," "FY2023 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 and projects)
2) Construction 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

FY2023 Results

1) 65% *Delays at Group companies
2) CSIRT: 100% (system in place)
SOC: Domestic 100%/Overseas 93%
3) Confidential management promotion system 100% (completed in FY2021)
ATSG: Non-consolidated 97%/Domestic 94%/Overseas 72%
*TMC requested a change in standards during the fiscal year.

Completed establishment of systems and frameworks both domestically and overseas

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