Under SF2030, we aim to maximize corporate value by integrating business and sustainability to create both social and economic value. To this end, we have identified for the first time Material sustainability issues as part of our long-term vision, and set sustainability targets in our long-term targets and medium-term management plan (SF 1st Stage).

SF2030 Targets and Fiscal 2024 Targets

We have set long-term targets with 2030 as the target year and targets for the medium-term management plan (SF 1st Stage) from fiscal 2022 to fiscal 2024.

	Material Sustainability Issues under SF2030	SF2030 Targets	FY2024 Targets
1	Resolving Social Issues through Our Business Creating social value and driving OMRON’s sustainable growth by resolving social issues through our business	The state of contributing to the sustainable development of society by resolving the social issues tackled Group-wide, namely, achievement of carbon neutrality, realization of a digital society, and extension of healthy life expectancy from the social change factors focused on in SF2030: an aging population, climate change, and economic disparity among individuals	Realize growth for sustainability sales^*1 of +35% vs. FY2021 as a way to impact the contribution to a sustainable society
2	Maximizing the Capability to Innovate Driven by Social Needs Evolving business models, endowing OMRON with the competitiveness required for achieving sustainable growth, and expanding new business generation efforts	The state of continuously generating new businesses by demonstrating our capability to innovate driven by social needs in both existing and new business domains, through actions such as evolving essential core technology development and incorporating it into business models	Number of new businesses created: 3 businesses or more
3	Generating Diverse Talent Taking on the Challenge of Value Creation Evolving human resources management to bring out the capabilities and skills of OMRON’s diverse talent, who will be the source of OMRON’s sustainable growth	The state of bringing diverse talent together where everyone can succeed, regardless of nationality, gender, or work style, where OMRON provides opportunities for its diverse talent to grow and evolves its human resources management to maximize their capabilities and skills	Human resources development investment: JPY 6 billion Ratio of localized key positions outside Japan: 80% and more Increase the ratio of women in managerial roles on a global basis to: -^2 Hire disabled individuals at 28 bases outside Japan: -^2 Hire disabled individuals at Japan: 3% or more VOICE SEI^*3: 70P and more
4	Achieving Decarbonization and Lower Environmental Impact By viewing climate change from the two aspects of opportunities and risks, practicing corporate social responsibility and building further competitive advantage	The state of building further competitive advantage while solving social issues through reducing greenhouse gas (GHG) emissions in the value chain and establishing a resource recycling model Scope 1 and 2^4: 65% cut vs. FY2016 Scope3, Category 11^6: 18% cut vs. FY2016	Scope1 and 2^4: 68% cut vs. FY2016 Achieve carbon zero at 76 domestic business sites^5 Scope 3 category 11^*6: Conduct energy-saving design for new products Transform business model to respond to the transition to circular economy, implement environmentally-friendly design, recovery, recycling, and sustainability procurement
5	Respecting Human Rights in the Value Chain As part of our corporate social responsibility, exerting our influence for the respect of human rights for workers in the value chain and at OMRON	In line with the UN Guiding Principles on Business and Human Rights, the state of exerting our influence for the respect of human rights for workers not only at OMRON, but also in the value chain, and establishing a culture and system that does not permit or cause human rights violations	Implement human rights due diligence in accordance with UNGP^*7 Establish a human rights redress mechanism in the global value chain

*1Sustainability sales: Sales from focus businesses that contribute to "Achievement of carbon neutrality", "Realization of a digital society", and "Extension of healthy life expectancies".
*2This target was not defined as of our announcement on May 8, 2024. This is a new target for Japan.
In addition, we will not establish targets globally or outside Japan for fiscal 2024, as personnel structural reforms are ongoing in certain areas outside Japan.
*3VOICE SEI: Sustainable Engagement Index, OMRON's employee engagement survey
*4Scope 1 and 2: Greenhouse gases emitted directly or indirectly from the company’s own operations.
*513 production sites and 63 non-production sites (HQ, R&D, sales)
*6Scope 3 Category 11: Scope 3 corresponds to greenhouse gas emissions from the company’s value chain. Of these emissions, Category 11 corresponds to emissions from the use of products and services manufactured or sold, etc.
*7UNGP: The UN Guiding Principles on Business and Human Rights

Sustainability KPIs and Results

To achieve SF2030, we have set KPIs for the material sustainability issues. The KPIs and results are shown below.

	Material Sustainability Issues under SF2030	KPIs	FY2022 Results	FY2023 Results
1	Resolving social issues through our business	Sustainability sales (vs. FY2021)	+28% growth (vs. FY2021)	+33% growth^* (vs. FY2021)
2	Maximizing capability to innovate driven by social needs	New businesses created	37 candidates created	31 candidates created
3	Generating diverse talent taking on the challenge of value creation	Investment in human resource development	JPY 1.61 billion	JPY 1.4 billion level
		Ratio of local staff in core positions outside Japan	80%	80% or more
		Ratio of women in management roles globally	16.6％^*4	19.1％^{6 }
		Ratio of employment of people with disabilities at bases outside Japan	Achieved at 27 bases outside Japan	Achieved at 28 bases outside Japan
		Ratio of employment of people with disabilities in Japan	3.10%	3.50%
		VOICE SEI^*1	76P	76P
4	Achieving de-carbonization and lower environmental impact	Scope1 and 2^*2	62% reduction (vs. FY2016)	68% reduction (vs. FY2016)
		Carbon Zero at bases in Japan	10 bases in Japan	39bases in Japan (cumulative)
		Scope3 Category 11^*3	1) Completed changing the calculation method of the representative formats of IAB, OHQ, and OSS from catalog values to implemented values.	Completed launch, development, and verification of energy-conservation and resource-conservation products established by IAB, OHQ, and OSS
		Scope3 Category 11^*3	2) Determined products subject to emission reduction for IAB, OHQ, and OSS and completed formulation of action plans
		Transition to a circular economy	Redefined environmental contribution and set a new direction	•Each business systematically addressed priority issues
				•Completed formulation of CFP^*7 calculation rules and calculation methods, and began calculation and disclosure initiatives in each business
				•Reviewed Biodiversity Policy encompassing matters related to a circular economy
5	Respecting human rights in the value chain	Human rights due diligence implementation	Identified 7 potential human rights issues that the OMRON Group will prioritize	Implemented and improved human rights due diligence with respect to regions and business sites subject to high potential risk at OMRON sites and suppliers
		Develop human rights redress mechanism	Global: Established supplier hotlines in all regions	Extended redress eligibility to customers and society by leveraging JaCER
		Develop human rights redress mechanism	Japan: Joined JaCER^*5 and began trial operation using industry mechanisms

*1The engagement survey “VOICE” is conducted every two years. The results of the FY2022 survey are presented in the FY2023 results.
*2Scope 1 and 2: Greenhouse gases emitted directly or indirectly from the Company’s own operations.
*3Scope 3 Category 11: Greenhouse gas emissions from the Company’s value chain resulting from the use of manufactured and sold products and services
*4Aggregated figure for the Company and its consolidated subsidiaries as of April 20, 2023, including OMRON KIRIN TECHNO-SYSTEM CO., LTD., in which investment was completed on April 3, 2023
The ratio of women in management at the Company and its consolidated subsidiaries as of March 31, 2023, was 16.8%.
*5JaCER: Japan Center for Engagement and Remedy on Business and Human Rights
*6Aggregated figure for the Company and its consolidated subsidiaries as of April 20, 2024.
*7CFP: Carbon footprint. A quantitative calculation of the environmental impact of the entire life cycle of products and services provided, from procurement of raw materials to disposal and recycling, converted into CO2 emissions.
*8Figures with * include JMDC
*9Fiscal 2023 results on the following sustainability targets will be published in the Integrated Report issued this fiscal year after receiving limited assurance engagements from a third-party.
- Ratio of local staff in core positions outside Japan
- Ratio of employees with disabilities in Japan
*10Fiscal 2023 results on the following sustainability targets will be disclosed on the OMRON corporate website. Bureau Veritas Japan is currently conducting third-party limited assurance engagements, and they are expected to be completed in June 2024.
- Greenhouse gas emissions (Scope 1 and 2, and Scope 3, Category 1, 2, 3)
- Environmental contribution
*11These limited assurance engagements are in accordance with the International Standards on Assurance Engagements (ISAE) 3000, Assurance Engagements Other Than Audits or Reviews of Historical Financial Information of the International Auditing and Assurance Standards Board (IAASB).

Sustainability Targets and Results