THE NEW VALUE FRONTIER

Priority Issues

To identify priority issues for the Sustainability Committee, the Kyocera Group considers social conditions, trends in the international community, our external environment, and priorities identified through stakeholder engagement. In addition to these priorities, sustainability issues and business strategies to achieve the mid-term financial targets (Consolidated sales revenue: 3 trillion yen; Profit before income taxes ratio: 20%; ROE: 10% or higher) are disseminated to top management at the International Management Meeting and reported to the Board of Directors. Through this process we identify issues of "materiality."

  Key Issues ● Risk / ○ Opportunity Targets / KPIs / Initiatives
Business Side (products / services / strategy)
Responding to the Diverse Needs of an Increasingly Digital Society Expansion of The Semiconductor Business
  • Increase in demand for semiconductor components

・Increased production of semiconductor-related components

・Making capital investments in factories in Japan and abroad

Promoting Business Related to Next-gen Communications Systems
  • Rising demand for base station-related products to improve communications networks
  • Rising demand for 5G smartphones and related products
  • New system / service business opportunities supporting 5G infrastructure
  • Increase in demand for 5G services by industry
  • Decline in existing businesses due to advancements in communications technology
  • Contributing to the expansion of high-speed communications systems
  • Development of 5G millimeter-wave backhaul systems
  • Development of 5G smart routers
  • Development of local 5G systems / services
New Business Creation
  • Expand sales through new business creation
  • Inability to achieve expected results and profit targets through newly developed technologies
  • Total sales revenue of 3 trillion yen; 250 billion yen from new businesses
  • Continued new business creation
  • Expansion of the GaN devices business
  • Launch robotics and digital printing businesses
Contributions in Fields of Rising Social Importance
  • Business expansion aligned with social trends toward decarbonization
  • Reduced sales due to price competition and other factors
  • Renewable energy power generation by Kyocera products: 15 billion kWh in FY2031
  • Expansion of regional microgrid technologies
  • Sales of solar power generating systems and storage batteries
  • Contributions to the decarbonization of society
Strengthening our Management Infrastructure
Decarbonizing Manufacturing Processes
  • Enhancing Company's brand value by promoting decarbonization
  • Increased costs from new laws, regulations, carbon taxes
  • Damage to corporate brand value resulting from incompatibilities with a decarbonized society
  • Long-term environmental targets revised from a 2°C to a 1.5°C level
  • Target for reducing greenhouse gas emissions, Scope1, 2, 3 (1.5°C level): 46% reduction in FY2031 compared to FY2020 levels
  • Expanding renewable energy adoption: 20 X by FY2031 (compared to FY2014 levels)
  • Targeting carbon neutrality by FY2051
  • Promoting energy conservation activities and visualizations
Securing Human Resources for Sustainable Growth
  • Establishing a diverse workforce
  • Business expansion achieved by work force specializing in digital technologies
  • Labor shortages due to smaller working population
  • Expanding women management ratio to 6% by the end of March 2023
  • Expanding paternity leave / childcare take rate of 30%
  • Promoting education on LGBT issues, and creating LGBT allies
  • Promoting employment opportunities for people with disabilities
  • Introducing flexible working systems (flextime, remote work)
  • Enhance support plans for balancing work with child care, nursing care, and medical needs
  • Training on diversity and inclusion for all employees
  • Implementing basic IT training for all employees to build digital technology awareness company-wide
Promoting Individual Employee Growth
  • Business expansion through employee development
  • Fostering a workplace culture that allows employees to reach full potential
  • Improving employee engagement through "workplace vibrancy surveys"
  • Promoting employee mobility (developing human resources with diverse experience and skills)
  • Implementing career development support measures (in-house recruitment system, career registration system)
  • Providing support for English language learning to develop human resources with a global minds
  • Implementing a system for dispatching employees to external venture companies
  • Developing next-generation leaders
  • Implementing a startup program for new business ideas
Respect for Human Rights
  • Growing need to enforce human rights in supply chains
  • Loss of brand value due to a lack of human rights measures
  • Preventing human rights violations
  • Expanding human rights policy
  • Human rights due diligence based on RBA Code of Conduct with external organizations
  • Implementing human rights due diligence at Kyocera Group worksites and supplier workplaces in Japan
  • Anti-harassment and anti-discrimination training
  • Establishing a third-party consultation service
Establishing a Sustainable Supply Chain
  • Growing need to enforce human rights in supply chains
  • Loss of brand value due to a lack of human rights measures
  • 0% rate of high-risk business associates as per human rights and labor items in Sustainability surveys
  • 0% rate of high-risk business associates as per the ethics items in Sustainability surveys
  • Reduction of risk across the entire supply chain
  • Implementation of Supply Chain Sustainability Survey
Promoting Digitization
  • Greater productivity and management efficiency
  • Promoting digital marketing
  • Establishing a data collection / analysis platform
  • Implementing initiatives aimed at doubling manufacturing productivity
  • Improving security and efficiency in administrative work