THE NEW VALUE FRONTIER

Sustainability Management

Concept

The Kyocera Group's sustainability activities reflect our management philosophy and our mission to build businesses that respond to societal needs. We are committed to develop environment-friendly products, implement climate change countermeasures through long-term environmental targets, and respect human rights.

images: SDGs icon

Promotion System

To promote the sustainable development of both society and the Kyocera Group, the Kyocera Group's Sustainability Committee holds two meetings yearly. The committee is chaired by our president, Hideo Tanimoto,and is attended by Kyocera's Inside Directors and other top leaders. In FY2023, we reported and discussed about long-term environmental goals, ways to contribute to the circular economy, and expanding the introduction of renewable energy. We will continue to promote company-wide collaboration to meet global expectations for sustainability in business.

images: Sustainability management

Sustainability Management Processes

To promote sustainable management, first, we seek to understand societal needs through stakeholder engagement. Next, we identify priority issues and take actions to address them. Then, we evaluate the results and discuss the improvement methods, while top management reviews them at committee meetings for further improvement.

Sustainability Management Process Flowchart

images: Sustainability Management Process Flowchart

Stakeholder Engagement

To understand societal needs and fulfill them, we have improved our communication with stakeholders in order to make decisions based on their opinions.

How We Select Materiality in Sustainable Management

The Kyocera Group continually assesses social conditions, global trends, and stakeholder concerns for discussion with our Sustainability Committee. Priorities are addressed at semiannual International Management Meetings, which are attended by the leaders of our global operations. Issues of materiality identified through this process are reported to the Board of Directors.

Priority Issues

Risk (●) / Opportunity (○) Targets () and Initiatives (・) Achievements by FY2024
Contributing to Society Though Our Business
Further growth through new segment structure
  • Rising sales through medium to longterm expansion of semiconductor markets
  • Increased demand for electronic components though expanding technologies such as AI/5G増
  • Potential for products / services to address sustainability and other societal needs
  • Achieving 2.5 trillion yen in sales revenue, medium-term target
  • Achieved 2.0042 trillion yen during the year ended March 31, 2024
  • Focusing on semiconductor markets
  • Expanding market share by maximizing synergies between Kyocera and KYOCERA AVX
  • Focusing on capacitors, timing devices, and connectors
  • Expanding business through strategic initiatives
  • Creating new businesses to address societal needs
  • Continued working on strategic activities in priority areas
  • Performed cross-selling activities utilizing comprehensive capabilities
  • Integrated Kyocera's production technology and Kyocera AVX's design capabilities and developed ceramic condensers and other new products utilizing Kyocera's patent technologies
  • Strengthened management infrastructure through Groupwide project activities
  • Growth Strategy for Document Solutions
  • Smart Energy Structural Reform Initiatives
Aggressive investment in high-growth semiconductorrelated businesses
  • Rising sales through medium to longterm expansion of semiconductor markets
  • Risk concentration (increased dependence on semiconductor markets)
  • Investing up to 400 billion yen in semiconductor equipment during three-year period ending March 2026
  • Used 65.8 billion yen for capital investments in the year ended March 31, 2024
  • Increasing production of cutting-edge semiconductor fabrication and packaging components
  • Flexibly responded to market changes and made approaches along with long-term prospects
Improving productivity through digitalization
  • Increasing productivity and efficiency
  • Information leakage and system failures
  • Inability to achieve cost reduction targets through digitalization
  • Improving employee proficiency in digitalization through onsite education, training and practice
  • Cultivated human resources specialized in digital information
  • Actively used AI platforms
  • Implementing education and training by position and function for a digitalization-savvy workforce
  • Reviewing business processes to create in-house digitalization and AI platforms
  • Expanding business by combining sales and market information
  • Enhancing manufacturing with IoT data and automation
  • Number of participants: DX training (248), data engineering training (174), data science training (92), and no-code development (975)
  • Common production management system
     Inventory management: Implemented by 17 divisions
     Process management: Implemented by 4 divisions
  • Unification of sales information
    All divisions implemented the system and transited into the sales process reorganization phase.
  • Manufacturing line automation
    In the process of automating new bases and buildings
Reinforcing R&D
  • Developing business through internal R&D
  • Inability to achieve expected results from newly developed technologies
  • Achieving 3 trillion yen in sales during FY2030
  • Used 104.3 billion yen for R&D for the year ended March 31, 2024(Up 10.6% from the previous year)
  • Developing technologies to advance existing businesses
  • Exploring future technologies
  • Implementing collaborative R&D between segments
  • Focused on approaches to the improvement of competitiveness in organic-based, multilayered packages and electronic components
  • Selected and concentrated on the search for future technology
  • Conducted demonstration experiments for 5G millimeter wave transmissions
  • Focused on new technology and product development through technological capabilities ensured by the reorganization of domestic R&D bases, the strengthening of human resource cultivation, and the enhancement of cooperation inside and outside the company
  • Promoted approaches to the establishment of new overseas R&D bases
  • Implemented approaches to open innovation and the creation of new business fields as well as the use of universities and other external resources
Incubating new businesses to address societal needs
  • Rising global environmental awareness creates demand for new businesses
  • Potential revenue from new businesses
  • Inability to achieve expected results through newly established businesses
  • Targeting new projects with 100 billion yen sales potential
  • Began placing the products from the robotics business on the market (November 2023)
  • Began placing textile inkjet printers on the market
  • Launched the FOREARTH textile inkjet printer at ITMA 2023 in Milan, Italy
  • I dentify and develop new business opportunities that address societal needs
  • Expand into new growth areas and increase business scale through M&A
  • Commence sales of textile inkjet printers
Promoting Sustainable Management
Achieving carbon neutrality
  • Greater brand value through successful response to societal needs
  • Higher compliance costs from new laws and regulations
  • Damage to corporate brand value from inability to respond to issues
  • GHG target (Scope 1, 2 / 1.5℃ level): 46% reduction by FY2031 compared to FY2020 levels
  • GHG target (Scope 1, 2, 3 / 1.5℃ level): 46% reduction by FY2031 compared to FY2020 levels
  • Renewable energy adoption: Increase 20X by FY2031 compared to FY2014 usage
  • Achieving carbon neutrality by FY2051
  • GHG Emissions (Scopes 1, 2): Reduced by 24%
  • GHG Emissions (Scopes 1, 2, 3): Reduced by 29%
  • Renewable Energy Implementation: Achieved 11.5 times more
  • Promote renewable energy
  • Promote company-wide energy efficiency
  • Implemented renewable energy on-site and off-site
  • Implemented thorough energy savings with improved deodorizers
  • Improved efficiency by visualizing GHG emissions from production and utility equipment
Building a circular economy
  • Increased profits through energy savings, conservation, and advanced recycling technologies
  • Higher compliance costs from new laws and regulations
  • Target content, post-consumer recycled materials (PCRs) used in multifunction products (MFPs) and printers enclosures and toner containers: 1% or more in 2023; 5% or more in 2024 (Limited to models to be launched)
  • PCR material reused for multifunction products (MFPs) and printers enclosures and toner containers: 4% in 2023
  • Reusing materials and components through collection of used multifunction products (MFPs) and printers
  • Reducing paper use through improved packaging
  • Using environmental design standards for product design/development
  • Continued the collection and reuse of used printer containers
  • Reduced paper use by improving packaging materials in the design and development of new machines
  • Reduced resin in packaging materials by using pulp molds
  • Established environmental design standards for product design and development of all multifunction products (MFPs) and printers
  • Discussed the reduction of waste using discarded PET film
  • Discussed the reuse of rare earth from the collection of fuel cells
Reinforcing human capital
  • Competitive advantages from workforce diversity
  • Labor shortage due to shrinking labor pool
  • Target for management positions held by female employees *1: 8.0% by FY2026
  • Target for eligible male employees taking childcare leave *1, 2 : 50.0% in FY2026
  • Management positions held by female employees: 5.3%
  • Male employees taking childcare leave: 30.7%
  • Sharing Kyocera Philosophy
  • Employee skills development
  • Corporate culture promoting diversity
  • LGBTQ awareness/inclusivity
  • Developing more attractive work environment
  • Implemented educational courses on the Kyocera Philosophy, management, technology and skill, and global processes
  • Provided e-learning courses on psychological safety and a questionnaire targeting all employees
  • Volunteers handed out special badges and stickers to individuals who took part in a cycling event
  • Reorganizing of headquarters and offices
Respect for human rights
  • Enhancing brand value through successful response to societal needs
  • Potential human rights issues impacting Kyocera Group or its value chains
  • Damage to corporate brand value from inadequate human rights assurance measures
  • Building a human rights "due diligence" system throughout Kyocera Group by FY2026
  • Established a human rights due diligence system
  • Identify any Kyocera Group human rights issues
  • Conduct fact-finding surveys of any issues
  • Survey guest-worker practices at Japan-based Kyocera Group companies and suppliers
  • Conducted a questionnaire on specific human rights issues throughout the Kyocera Group, overseas suppliers, and outsourced companies
  • Corrective action on identified human rights issues (Failure to conduct evacuation drills for foreign workers, etc.)
  • Implemented a supplier visit survey on the human rights of foreign labor
  • Revision of Kyocera Group Human Rights Policy
Improving stakeholder engagement
  • Improving stakeholder relationships through communication
  • Improving corporate transparency
  • Damaged stakeholder relationships due to poor communication
  • Continue stakeholder communications to build trust
  • Continued communication with stakeholders
  • Reply swiftly to customers
  • Act on workplace survey results
  • Hold financial results briefings with shareholders and investors
  • Seminars and social events for business partners
  • Discuss social contribution activities with community and business partners
  • Inquiries from consumers: 3,604 cases
  • Employee response rate to the workplace vitality assessment: 93.6% (targeting 29,781 employees)
  • Held briefings on financial results and provided business summaries for institutional investors (4 times) and one-on-one meetings with institutional investors (350 times)
  • Held company information sessions with individual investors (2 times)
  • Sponsored seminars and social gatherings for partner companies (with 250 participants from 215 partner companies)
  • Held sustainability reporting sessions for local communities (5 locations)
Ensuring sustainable supply chains
  • Sustainable growth by ensuring strong supply chains
  • Human rights issues in supply chains
  • Damage to corporate brand value from inadequate human rights assurance measures
  • Human rights and labor: Ensure 0% high-risk transaction rate through supply chain survey
  • Ethics: Ensure 0% high-risk transaction rate through supply chain survey
  • High-risk transaction rate regarding human rights and labor: 0%
  • High-risk transaction rate regarding ethics: 0%
  • I dentify risks faced by business partners through the supply chain survey, and implement countermeasures
  • Survey guest worker practices at Japan-based Kyocera Group companies and suppliers
  • Conducted supply chain surveys (319 companies)
  • Conducted surveys on foreign workers
Reinforcing risk managemen
  • Enhancing risk management, and responding effectively during emergency
  • Disaster impact, damage to corporate image, or prolonged business interruption, due to lack of disaster countermeasures
  • Annual BCP education and training
  • BCP education and training (1 time)
  • Create/review early recovery and alternative supply plans
  • Identify corporate risks and countermeasures from Risk Management Committee
  • Reinforce risk management processes
  • Identified corporate risks
  • Held Risk Management Committee meetings (2 times)
  • Start of reporting on corporate risk to the Board of Directors
  • Kyocera Corporation
  • Number of Male Employees Taking Childcare Leave During the Period/ Number of Male Employees Whose Spouses Gave Birth
    Number of Female Employees Taking Childcare Leave During the Period/ Number of Female Employees Who Gave Birth During the Period