Message from Officers in Charge of Sustainability
Katsuhiko Yoshida, Director, President COO & CFO, Head of Sustainability Management Division
The current social environment faces a multitude of challenges that are complexly intertwined with shifts in global affairs, such as intensification of climate change, the loss of biodiversity, resource depletion, the aggravation of human rights issues, and regional conflicts. These are imminent issues directly linked to our business, lives, and future.
The Sustainability Management Division plays a role in putting our corporate philosophy, "To contribute to realization of a sustainable, eco-friendly and prosperous society by providing better products, at a faster speed, in larger numbers, at a lower cost and by smarter means," into practice, serving as a vital contributor to resolving these social issues. We pursue sustainability as a Group-wide effort, because we view it as our duty in society and appropriate business risk management and generating new growth opportunities are the root of corporate value enhancement.
Most notable is the introduction of renewable energy to our factories, as we recognize the importance of achieving carbon neutrality. Among them are large-scale solar power generation projects in Thailand, the Philippines, and Cambodia, home to our flagship factories. In Cambodia, all power consumption for both existing factories and future bases is expected to be sourced from renewable energy, which will be a huge milestone in mitigating the environmental burden attributable to our manufacturing operations. To support these initiatives, we added the commercialization of renewable energy to our Articles of Incorporation in June 2024. This will not only allow us to meet the environmental needs of our customers and local communities, but also to strengthen our cost competitiveness by undertaking large-scale power generation projects ourselves.
Moreover, we believe that "people" with "PASSION" are who make the continuous growth possible. An environment where every employee, regardless of their background, can passionately take on challenges is the very ground from which innovative technologies and businesses are born. To realize this, we will systematically promote the discovery and development of next-generation talent, grounded in the "Spirit of Equality" that disregards nationality or attributes, thereby boosting the vitality of the entire organization.
We stay committed to building a prosperous and sustainable future by fulfilling expectations from our stakeholders and addressing social issues through our business operation. Striving to be an "indispensable company by driving the world forward," we will keep taking on challenges.
Tetsu Shiozaki, Executive Officer, Deputy Head of Sustainability Management Division
As a global company, MinebeaMitsumi Group place sustainability at its core of business management, and are committed to building a sustainable society through our operations. Together, we are working on tackling on intensifying, intertwined global challenges, such as climate change and human rights issues.
Our Sustainability Promotion Structure
In order to build a highly effective governance system, we have established the Sustainability Management Division in 2019, comprising seven dedicated departments based on two separate functions: audit and execution. These departments serve as secretariats of the Compliance Committee, Environment Management Committee, and Information Security Committee, in which our materiality is deliberated from professional perspectives. In this structure, Sustainability Management Division and each committee work hand in hand, driving initiatives across the Group.
Based on this structure, we are advancing company-wide initiatives to address environmental issues for climate change and environmental conservation (E), social issues for local community support and human rights/occupational safety and health (S), and governance issues for risk management and cybersecurity across our supply chain (G). Initiatives taken by each of these dedicated departments/committees are reported at the Board of Directors' Meeting on a regular basis or as necessary to ensure the effectiveness under their supervision.
Initiatives for Environmental Issues
Led by the Group Environmental Management Office, we have built a worldwide network of specialized team to tackle various challenges.
Initiatives for Social Issues
"People" is the most important driver for our sustainable growth. INTEGRATION between our core competences, business and technologies, is nothing less than INTEGRATION of "people." And I strongly believe each employee's goal and will, or PASSION drives our company group forward.
Based on this idea, we now uphold "spirit of equality" as the basic policy in our talent management policy. We have revised our conventional, experience-focused human resource training into a strategic one, in an effort to create opportunities where employees from diverse backgrounds can thrive and enhance next generation-oriented reform and measures. We are also taking a proactive stance on revising the evaluation system in order to encourage our employees to chase their PASSION and take on challenges.
Furthermore, as we recognize that our growth is inseparable from the development of our operating regions, we strive to be a "Good Corporate Citizen" who co-creates future alongside local communities by respecting their culture and custom and valuing communication with them.
Contributing to "people" and "society" can require long and steady efforts. Nevertheless, we are willing to continue doing our utmost in maintaining dialogue with our stakeholders and realizing a better society.
Initiatives for Governance
Fulfilling social responsibilities for stake holders while creating sustainable corporate values requires both offensive approach aimed at maximizing profit and defensive approach focused on accurate risk management. For this reason, we uphold "resilient management structure" as our key theme, with "extensive corporate governance" and "strengthening risk management" identified as our materiality.
On the governance front, we are working on improving the effectiveness of the Board of Directors' Meeting, internal management structure, and disclosed information along with the mechanisms to support it. Simultaneously, in risk management, we aim to establish a global risk culture, realize resilient business operations, and strengthen our capacity to handle information security risks. Through these initiatives, we ensure to handle any changes in the business landscape accurately and earn trust from our stakeholders.
Hiroyuki Eguchi, Chief Green Officer of the Sustainability Management Division
As addressing climate change and other issues becomes an urgent challenge both domestically and internationally, we have positioned our QCDESS® strategy, focusing on Quality, Cost, Delivery, Eco, Efficiency, Service, and Speed, as the foundation for our 100th anniversary in 2051, with an emphasis on Eco and Efficiency.
Among our material issues (materiality), we highlight "contributing to solutions to global environmental issues." We aim to "minimizing environmental impact by expanding use of renewable energy and other measures" and, by leveraging our greatest strength, ultra-precision machining technology, "reduction of global CO2 emissions through environmentally friendly products."
In October 2024, we obtained Science Based Targets (SBT) certification. Based on the fiscal year ended March 2023 as the base year, we have set targets to reduce Scope 1 and Scope 2 emissions by 42% and Scope 3 Category 11 (use of sold products) emissions by 25% by the fiscal year ending March 2031. In line with these goals, we have newly formulated the MMI Roadmap toward a Decarbonized Society. We will integrate, organize, systematize, and accelerate various initiatives, pursuing both environmental impact reduction and corporate value enhancement as a united company.
