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Sustainability Issues and Goals

Sustainability Issues and Goals

OMRON has defined two main areas of sustainability issues to tackle. The first area includes social issues that OMRON should solve through the four focus business domains defined by the VG2.0 medium-term management plan. The second area includes social issues that OMRON should address to support the execution of VG2.0 and meet the expectations of stakeholders. From fiscal 2017 onward, OMRON will promote efforts to address these issues in order to achieve its fiscal 2020 goals.

Issues to solve through business
  • Factory Automation: Manufacturing innovation
  • Healthcare: Zero cerebrovascular/cardiovascular events caused by high blood pressure, Zero asthma attacks
  • Mobility: Reduction of traffic accidents and the environmental burden of vehicles
  • Energy Management: Increasing use of renewable energy
Issues to respond to stakeholder expectations
  • Talent Attraction and Development
  • Diversity and Inclusion
  • Wellness Management
  • Occupational Health and Safety
  • Respect for Human Rights and Labor Practices
  • Product Safety and Quality
  • Reduction of Greenhouse Gas Emissions
  • Appropriate Management and Reduction of Hazardous Substances
  • Supply Chain Management
  • Fair Business Practices
  • Privacy and Data Security

Response to Social Needs

OMRON will contribute to society by solving social issues in four focus domains defined by VG2.0, while also achieving business growth.

Factory Automation: Manufacturing Innovation

Social Issues
  • Labor shortages of skilled workers in developed countries, soaring labor costs in emerging nations
  • Diversification in manufacturing (dispersed manufacturing locations, change in production methods, and increasing sophistication of manufacturing techniques)
OMRON’s Initiatives

<Manufacturing Innovation>

  • Approach to four focus industries (Automobile, digital, food & commodity, social infrastructure)
  • Value generation through innovative-Automation!*
FY2020 Goals/KPIs
  • New products leading to innovative-Automation! in four focus industries
    - Create control technologies for manufacturing innovation (Generate new value enabling productivity improvements for four focus industries)
Social Value Contribute to economic growth through social productivity improvement
  • * "innovative-Automation" is a strategy concept intended to enable manufacturing innovation through innovative solutions unique to OMRON. "innovative-Automation!" incorporates three "i"s to define manufacturing for the future—Integrated, Intelligent, and Interactive Automation.

Healthcare: Zero cerebrovascular/cardiovascular events caused by high blood
pressure, Zero asthma attacks

Social Issues
  • Increasing incidence of cerebrovascular and cardiovascular diseases caused by high blood pressure
  • Worldwide increase in respiratory diseases
OMRON’s Initiatives

<Zero cerebrovascular/cardiovascular events caused by high blood pressure, Zero asthma attacks>

  • Reducing cerebrovascular/cardiovascular diseases caused by high blood pressure to near-zero by further promoting blood pressure monitoring at home, and advancing technology to enable continuous monitoring
  • Enable detection and treatment of asthma in early stages by offering nebulizers and asthma wheeze monitors
FY2020 Goals/KPIs
  • Blood pressure monitor sales: 25 million units/year
  • Nebulizer + asthma wheeze monitor sales: 7.65 million units/year
    (Enable these products to reach more people)
Social Value Contribute to healthy and comfortable lives for people around the world through lengthened healthy lifespans and reductions in medical expenditures

Mobility: Reduction of traffic accidents and the environmental
burden of vehicles

Social Issues
  • Increase in accidents involving elderly drivers in developed countries
  • More accidents, congestion, and environmental burden in emerging countries
OMRON’s Initiatives

<Reduction of traffic accidents and the environmental burden of vehicles>

  • Provide advanced traffic control and road management systems
  • Provide automotive sensors for advanced driver assistance system/autonomous driving
  • Provide automotive products enabling increased fuel efficiency for vehicles and development of EVs, HEVs, PHEVs
FY2020 Goals/KPIs
  • Create driving safety support systems and technologies
  • Automobiles with environmentally friendly products: 10 million units/year
  • Create 360-degree around-the-vehicle recognition technology for advanced driver assistance system/autonomous driving
    (Generate new value for reducing traffic accidents, develop and supply products that make greater contribution to fuel efficiency)
Social Value Contribute to safe, secure, pleasant, and clean lifestyles for people around the world

Energy Management: Increasing use of renewable energy

Social Issues
  • Acceleration of global warming due to increasing CO2 levels
OMRON’s Initiatives

<Promoting widespread and stable operation of renewable energy systems>

  • Maximize energy efficiency by drawing on energy conversion and control technologies of energy-related products such as PV inverters and battery storage systems
  • Develop infrastructure for dispersed power supply systems
FY2020 Goals/KPIs
  • PV/storage system cumulative shipped capacity: 11.2 GW
    (Help generate more renewable energy)
Social Value Contribute to sustainable society by promoting the use of renewable energy
  • Reference: FY2016 status
    PV/storage system cumulative shipped capacity: 7.2 GW

Human Resource Management

OMRON’s human resources strategy is intended to create a strong company in which people can grow, enjoy work, and continuously perform at high standards. Toward this objective, OMRON is promoting effective management of human resources. OMRON envisions an organization in which individual members of a diverse workforce can put their unique talents to use and achieve personal growth on their own initiatives. By so doing, these workforce members drive the growth of OMRON by contributing to customers and society as a whole, through improvements of productivity and added value.

Talent Attraction and Development

OMRON’s Initiatives

<Implementation of Human Resources Strategy>

  • Acquire and foster next generation of leaders (candidates for assuming core positions)
  • Establish a workplace environment that can attract and empower the diverse talent necessary for business growth
  • Foster self-motivated employees who can achieve self-transformation and development
FY2020 Goals/KPIs
  • Evolve and advance TOGA* to act in the spirit of the OMRON Principles
  • Ratio of non-Japanese in managerial positions overseas: 66%
  • Accelerate PDCA cycle via employee engagement surveys
Social Value Develop leaders who can drive innovation for solving social issues through businesses and a pool of talented workers who can put their diverse capabilities to use
  • * TOGA stands for The OMRON Global Awards, an internal award system designed to encourage employees to put the OMRON Principles into action. This initiative is intended to motivate individual employees to challenge themselves to solving social issues and generating new value on their own initiatives.
  • Reference: FY2016 status
    ・Ratio of non-Japanese in managerial positions overseas: 49%
    ・Conducted employee engagement survey

Diversity and Inclusion

OMRON’s Initiatives

<Promotion of diversity>

  • Empower and expand the role of women (OMRON Group in Japan)
  • Empower and expand the role of people with disabilities
FY2020 Goals/KPIs
  • Ratio of women in managerial roles (OMRON Group in Japan): 8%
  • Employment of people with disabilities: Expand employment to exceed legal requirements
Social Value Build a workplace in which a diverse group of people can demonstrate their talents and maximize their potential at work without regard to gender, disability, or other personal differences
  • Reference: FY2016 status
    ・ Ratio of women in managerial roles (OMRON Group in Japan): 3.3%
    ・ Percentage of employees with disabilities: OMRON Corporation: 3.33%, OMRON Group in Japan: 2.47%

Wellness Management

OMRON’s Initiatives

<Promotion of health management in Japan>

  • OMRON Health Management Declaration
  • Employee education
  • Initiatives intended to remove factors that negatively affect health
FY2020 Goals/KPIs
  • Percentage of mental health education participants in Japan: 100%
  • Mental toughness in Japan: Deviation score of 55 or higher
Social Value Support employees’ health promotion and management to enhance their productivity and creativity while reducing medical expenditures. This is intended to help each employee find fulfillment in work and life.

Occupational Health and Safety

OMRON’s Initiatives

<Establishment of a management system and continuation of improvements>

  • Promote acquisition of international certification for occupational health and safety at main production sites
  • Train and develop OH&S promoters
FY2020 Goals/KPIs
  • OHSAS18001-certified production sites: Acquire certification at sites accounting for 80% of total production
  • Sites with OH&S promoters in place: All target sites
  • Percentage of promoter training participants: 100%
Social Value Allow all OMRON Group employees to put their capabilities to full use by creating a workplace that is comfortable and safe in both physical and mental aspects, in compliance with applicable laws and regulations
  • Reference: FY2016 status
    ・International standard certified production sites: 5
    ・Sites with OH&S promoter in place: 97% of all sites

Respect for Human Rights and Labor Practices

OMRON’s Initiatives

<Establishment of a management system and continuation of improvements>

  • Establish a management system (Human Rights Policy and an organizational system)
  • Analyze risks in production sites and take corrective measures
FY2020 Goals/KPIs
  • Establish and implement human rights due diligence process
  • Production sites in which risk analysis is conducted and corrective measures taken: All
Social Value Create a better workplace environment that ensures that the rights of all people working at the OMRON Group are properly respected

Manufacturing

By putting the OMRON Principles into practice in a way that complies with its Manufacturing Policy*, OMRON will create social value and strives to contribute to sustainable manufacturing. In conformance with OMRON’s Purchasing Policy, OMRON also seeks to achieve sustainable procurement together with suppliers through purchasing practices that conform to our guidelines.

  • * OMRON’s manufacturing policy comprises three principles-Quality First, 3F (Front-loading, Flowing & Flexible), and H&E (Human-oriented & Eco-manufacturing). The "3F" policy refers to the creation of the value sought by customers in the upstream of the development process. This value is built into products and services so that we can deliver what customers require in the needed quantities and at the needed times. In this way, the policy addresses the creation and delivery of customer value. The H&E policy aims to achieve the best match between people and machines and promote humanity-focused, environmentally friendly manufacturing to use limited resoruces.

Product Safety and Quality

OMRON’s Initiatives

<Promotion of Group-wide quality management>

  • Conduct Group-wide quality management reform
FY2020 Goals/KPIs
  • Ratio of product safety assessments for newly developed products: 100%
Social Value Achieve sustainable manufacturing by incorporating quality, safety, environmental friendliness, and consideration for human rights into products and services

Reduction of Greenhouse Gas Emissions

OMRON’s Initiatives

<Promotion of Green OMRON 2020>

  • Reduce CO2 emissions through more effective use of electricity
FY2020 Goals/KPIs
  • Environmental contribution > CO2 emissions from global production sites
  • Ratio of global sales to CO2 emissions (from global production sites): 30% improvement compared to FY 2010 results
Social Value Build a low-carbon society by reducing greenhouse gas emissions, thereby contributing to sustainable manufacturing
  • Reference: FY2016 status
    ・Environmental contribution (593 thousand tons of CO2) > CO2 emissions from global production sites(200 thousand tons of CO2)
    ・Ratio of global sales to CO2 emissions (from global production sites): 20% improvement (67% progress) compared to FY2010 results

Appropriate Management and Reduction of Hazardous Substances

OMRON’s Initiatives

<Promotion of Green OMRON 2020>

  • Stop use or reduce the use of harmful substances in accordance with societal demand
  • Build a framework for management of chemical substances used in manufacturing process
  • Make environmental investments to stop use of CFCs/HCFCs
FY2020 Goals/KPIs
  • Reduction of mercury through the prevalence of digital thermometers and digital blood pressure monitors: 69 tons/year
  • Stop use of CFCs in FY 2018. Stop use of HCFCs and mercury (fluorescent lamp use) in FY 2020
Social Value Create a low-carbon society that is in harmony with nature by reducing harmful impact of hazardous substances on people, living creatures, and the environment
  • Reference: FY2016 status
    ・Reduction of mercury: 52 tons/year (75% progress)
    ・Setting goals and creating action plans

Supply Chain Management

OMRON’s Initiatives

<Engagement with partners>

  • Hold global partner conference
  • Promote sustainability self-assessment at suppliers
  • Introduce supply chain management in conformance with EICC* and maintain and improve it
FY2020 Goals/KPIs
  • Sustainability self-assessments by important suppliers: Implementation ratio: 100%, Score of 85 or higher
Social Value Achieve sustainable production and consumption in society by solving social issues in supply chains together with suppliers
  • * EICC: Electronic Industry Citizenship Coalition
  • Reference: FY2016 status
    ・Sustainability self-assessments by important suppliers: 87% Average score: 81

Risk Management

OMRON promotes risk management that integrates all risk-related activities at the global level, in order to ensure business continuity and the achievement of goals, while also fulfilling its social responsibilities. By disseminating the polices and rules established in-house, OMRON seeks to build long-term relationships of trust with stakeholders while helping employees engage in work and business with pride and a sense of security.

Fair Business Practices

OMRON’s Initiatives

<Reinforcement of compliance programs>

  • Review OMRON Group Rules for Ethical Conduct on a regular basis in order to reflect laws/regulations and societal demand in countries throughout the world
  • To maintain awareness of compliance and instill provisions stipulated in rules:
    Offer necessary training and education periodically and continuously
  • Assess issues using the whistle-blower system and promptly take corrective actions
FY2020 Goals/KPIs

Continuous evolution in group governance

  • Consistent promotion of OMRON Group Rules* at all global sites
  • Global training regarding the OMRON Group Rules for Ethical Conduct
Social Value Implement proper anti-corruption initiatives reflecting political, economic, and cultural background of each country in order to contribute to preserving an orderly and sound society based on law.
Ensure fair business practices in conformance with applicable laws of respective countries and global rules, thereby contributing to the creation of a society that allows fair and free competition.
  • * Internal rules to ensure OMRON management transparency, fairness, and global perspective that serve as a foundation for proper and timely decision-making.
  • Reference: FY2016 status
    ・ Promoted OMRON Group Rules at Group companies and instilled them through e-learning and other education and awareness-raising measures
    ・ Established OMRON Group Rules for Ethical Conduct

Privacy and Data Security

OMRON’s Initiatives

<Build a new information security system>

  • Comply with privacy-related laws revised or newly enacted in various countries across the world
  • Strengthen technologies to combat recent increase in cyber-attacks
  • Review information security education program and continue education
FY2020 Goals/KPIs

Continuous evolution in group governance

  • Consistent promotion of OMRON Group Rules at all global sites
  • Build a new information security system
Social Value Enable appropriate management of confidential data and personal information to help conduct business safely and securely in a digitized society
  • Reference: FY2016 status
    ・ Complied with new or revised laws/regulations
    ・ Started adoption of stronger anti-cyber-attack measures on a global basis
    ・ Offered training related to information security

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