CSR Activities: Targets and Results

• In order to promote our suppliers’ establishment of greenhouse gas reduction targets to achieve SBT^*1, Murata has set up procedures for investigating suppliers’ current circumstances and requesting the establishment of said targets.
• We will limit the volume of greenhouse gas emissions to below 1.4 M tons of CO₂ for
  FY 2021.
• Greenhouse gas emissions of domestic logistics will be limited to 2.0 kg/million yen in real manufacturing output.
• The range of included factors in logistics greenhouse gas emissions will be expanded.

• In order to promote the establishment of greenhouse gas emissions reduction targets aiming for SBT, Murata will implement questionnaire-based surveys for corresponding suppliers regarding their current situation.
• FY 2019 emissions will be limited to below 1.67 M tons of CO₂.
  We will also create a system to achieve the FY 2021 emissions target of maximum 1.4 M tons of CO₂.
• We will calculate the volume of CO₂ emissions in Murata’s domestic logistics.
• The range of included factors in logistics greenhouse gas emissions will be expanded.

• In order to promote the establishment of greenhouse gas emissions reduction targets aiming for SBT, Murata has implemented questionnaire-based surveys for corresponding suppliers regarding their current situation.
• We were able to limit CO₂ emissions below the targeted
  1.47M tons of CO₂, at 1.6 M tons (recieved third-party verification).
• The volume of CO₂ emissions in domestic logistics was 4,823 tons of CO₂.
• One business office has been newly added to the range of included factors for logistics greenhouse gas emissions.

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• In order to promote the establishment of greenhouse gas emissions reduction targets aiming for SBT, Murata will continue to implement questionnaire-based surveys for corresponding suppliers regarding their current situation.
• Due to energy-saving measures implemented at facility management and energy-saving measures promoted at business division, as well as efforts such as Murata’s introduction of renewable energy, FY 2020 total greenhouse gas emissions will be limited to below 1.52 M tons of CO₂.
• In order to further the entire company’s response to climate change, Murata will take measures such as active participation in JCLP^*2 efforts, disclosure of TCFD^*3 financial information, and securing SBT certification.
• Greenhouse gas emissions of domestic logistics will be limited to 2.0 kg/million yen in real manufacturing output.
• The range of included factors in logistics greenhouse gas emissions will be expanded.

• We will improve our ratio of waste output to production by 7% for FY 2021 (compared to the
  FY 2016-2018 average).
• We will improve our ratio of water use to production by 6%
  for FY 2021 (compared to the
  FY 2016-2018 average).
• We will examine industry trends and regulations for resource recycling.
• We will create a feasible system and verify its economic effects.

• Our FY 2019 ratio of waste output to production will be limited to below that of the previous fiscal year.
• We will improve our ratio of water use to production by 5%
  for FY 2019 (compared to the
  FY 2016-2018 average).
• We will investigate domestic and international regulatory trends regarding plastic.
• We will clarify the scope of waste products for which we will create recovery and recycling procedures.

• The FY 2019 ratio of waste output to production was improved by 10% compared to the average for FY 2016-2018 and by 13% from the FY 2018 results (+24%), accomplishing Murata’s single-year target of limiting the emissions output rate to below that of the previous fiscal year.
• The FY 2019 ratio of water use to production deteriorated by 2% compared to its FY 2016-2018 average, missing Murata’s target of 5% improvement.
• We investigated domestic and international regulatory trends regarding plastic.
• We clarified the scope of waste products for which we will create recovery and recycling procedures.

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• The FY 2020 ratio of waste output to production will be limited to below the FY 2016-2018 average.
• The FY 2020 ratio of water use to production will be limited to below the FY 2016-2018 average.
• We will examine industry trends and regulations for resource recycling regarding waste and water.
• We will create a feasible recycling system for plastic and verify its economic effects.

• Materials, parts, and products supplied to Murata will be subject to green procurement based on Murata standards^*4.
• Environmentally harmful substances contained in Murata products and materials will be managed based on Murata standards.
• Internal and external demands (legal requirements, customer demands, and Murata standards) regarding chemical substances contained in products will be reflected in product specifications.
• Murata will proactively respond to new developments such as legal changes and social trends.
• We will create a management system for our global VOC output.

• The source medium for information on ingredients contained in cast products will be switched from green procurement reports to chemSHERPA^*5.
• Environmentally harmful substances contained in Murata products and materials will be managed based on Murata standards.
• We will revise Murata's standards in a timely manner.
• We will establish VOC output recording methods for overseas business offices.

• The source medium for information on ingredients contained in cast products was fully switched from green procurement reports to chemSHERPA.
• We maintained our management methods for the current state of chemical substances.
• In response to new developments such as legal revisions and social trends regarding chemical substances, we revised Murata's standards
  in a timely manner.
• We established VOC output recording methods for overseas business offices.

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• We will thoroughly investigate and verify the state of management based on Murata's standards in internal quality control.
• Together with revising Murata's standards in a timely manner, we will make the company's thinking behind such decisions more transparent.
• Based on developments in legal regulation and Murata's internal circumstances, we will formalize our views on VOC reductions from a global perspective and establish targets to be accomplished.

• By paying attention to environmental concerns at the product planning and design stage, we will experiment with methods of preserving resources and preventing the emission of environmentally harmful substances.

• We will examine flows and issues of planning and design for each business area and product lineup and process environmental aspects that might have an impact in terms of our business plans.

• After examining flows and issues of planning and design for each business area and product lineup, we initiated activities to reduce the environmental burden starting at business divisions.
• We reevaluated our product assessment structures.

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• In addition to continuing activities to reduce the environmental burden starting at business divisions, we will verify our structures for protecting the environment at the product planning and design stage.

［Reduction of Work Accidents］

• We will not allow serious accidents leading to death or lasting impairment to occur.
• The yearly rate of accidents per 1,000 persons will be limited to 1.6 or less.

［Promotion of Health Management］

• We will implement a system of promoting health management.
• We will reduce risks in the field of health management as part of Murata's business operations.
• We will carry out health management efforts for each individual employee.

［Reduction of Work Accidents］

• We will not allow serious accidents leading to death or lasting impairment to occur.
• The yearly rate of accidents per 1,000 persons will be limited to 2.1 or less.

［Promotion of Health Management］

• We will implement a system of promoting health management.
• We will reduce risks in the field of health management as part of Murata's business operations.
• We will carry out health management efforts for each individual employee.

［Reduction of Work Accidents］

• There were no serious work accidents, either domestic or overseas.
• The yearly accident rate per 1,000 persons was 2.1, achieving the target (2.1 or less).

［Promotion of Health Management］

• A health management plan was established.
• The system of industrial physicians and full-time healthcare staff (public health nurses and registered nurses) was expanded.

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［Reduction of Work Accidents］

• We will not allow serious accidents leading to death or lasting impairment to occur.
• The yearly rate of accidents per 1,000 persons will be limited to 1.8 or less.

［Promotion of Health Management］

We are currently reevaluating this item in light of the spread of COVID-19.

• Murata will establish a "Management System on Human Rights and Labor," utilize PDCA effectively, and plan further improvements.
• We will expand education for increasing employee sensitivity regarding such issues as human rights, labor, and harassment.
• We will promote diversity and inclusion.

• ・We will create an environment in which personnel with diverse backgrounds are able to make maximum use of their abilities while contributing to the company.
• ・We will achieve a 10% proportion of female technical staff during the new-graduate hiring process for regular positions.
• ・We will undertake efforts to increase the share of women in management positions.
• ・We will create a system that provides meaningful work opportunities for people with disabilities and enables their continued employment.

• Murata will establish a "Management System on Human Rights and Labor."
• We will continue human-rights education (according to job class).
• We will develop educational tools that make it easier for employees to learn about human rights, labor issues, and harassment.
• We will promote diversity and inclusion.

• ・We will implement policies for accomplishing balanced work styles that are both physically and mentally healthy.
• ・We will undertake efforts to ensure that employees personally understand Murata's unique qualities as outlined in our management principles.
• ・We will introduce a human resource system that enables expert personnel to flourish.
• ・We will consider efforts to promote career-building and growth for female employees.
• ・We will undertake efforts to expand the range of work for people with disabilities.

• In order to establish a "Management System on Human Rights and Labor," we have analyzed external survey results and completely revised Murata's basic policy on human rights and labor, and informed all involved.
• In addition to continuing our human rights education, we have completed e-learning materials and introduced them to Murata's employees in Japan.
• We will promote diversity and inclusion.

• ・We implemented training on work-hour and health management at business offices and affiliated companies.
• ・We opened the Murata Innovation Museum and held study groups for internal educators.
• ・We created content that teaches the history of Murata's product development and promoted this content to employees.
• ・We introduced a human resource system that enables expert personnel to flourish.
• ・We reevaluated Murata's part-time work system and made institutional adjustments such as the creation of a temporary school closure leave.
• ・We actively dispatched female employees to places providing information on the diverse careers of women who are active inside and outside the company.
• ・In order to expand the range of work for people with disabilities, we established a special-purpose subsidiary. (Murata Cosmos; opened in April 2020).

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• We will create a human rights risk map, determine policies to address high-risk issues and begin formulating responses.
• We will revise our management manual based on human rights due diligence.
• We will carry out regular global surveys on issues such as forced and child labor and determine the range of our efforts regarding supply chains.
• We will finish implementing e-learning for all our employees in Japan and determine a policy and content for expansion to overseas business locations and supply chains.
• We will promote diversity and inclusion.

• ・We will implement policies for accomplishing balanced work styles that are both physically and mentally healthy.
• ・We will make efforts to ensure that employees personally understand Murata's unique qualities as outlined in our management principles.
• ・We will consider efforts to promote career-building and growth for female employees.
• ・We will make efforts to create an environment in which employees can work comfortably regardless of their SOGI (sexual orientation & gender identity).
• ・We will make efforts to expand the range of work for people with disabilities.

• Aiming for "harmony among people, organizations, and society," we will achieve the founder's principle that "Murata aspires to be a company whose presence in local communities is a source of pride and joy to those communities" on a global level.

• Through the implementation of environmental and STEM (science, technology, engineering, and mathematics) education, we will consistently support the education of children, who will inherit the future.
• We will consistently carry out activities with local communities, such as participating in local events, protecting forests, and greening our business locations.
• We expand our activities contributing to society and local communities on a global scale.

• We worked on the design of guidelines for activities contributing to society that consider educational support for the next generation as our priority areas.
• We launched new activity "Move, teacher Robots!!", with visiting classes in hands-on programming.
• We performed 108 visiting classes in Japan, and 21 classes in overseas.
• Hakui Murata Manufacturing won the Japan Greenery Research and Development Center's Chairperson's Award during the
  FY 2019 factory greening awards.
• We carried out factory greening and forest preservation activities, and participated in local events,
  as listed below.

• ・Forest preservation/greening activities: 31 cases in Japan,
  8 overseas.
• ・Local cleaning activities:
  93 cases in Japan, 17 overseas.
• ・Participation in local events and the like: 42 cases in Japan,
  26 overseas.

• We held the first "Murata Cup 2019" at a local university and supported the innovation activities of college students in China.
• UK employees helped to renovate the theatre academy. It offers activities for children, including disadvantaged children from difficult backgrounds who would not normally have the opportunity of taking part in the Arts - dancing, singing and acting.
• We increased opportunities to share the results of social contribution activities at our overseas sites every six months, same as Japan sites.

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• Deepening our connections with local communities through STEM and environmental education, we will promote educational support for the next generation.
• We will continue our efforts to actively contribute to forest preservation and local community events.
• We will determine areas for individual group companies to autonomously develop in response to their local circumstances, and create a system for planning and implementing activities to contribute to society and local communities.

• By developing and reconfiguring existing structures such as the evaluation of our suppliers' CSR adherence and responsible mineral procurement, we will achieve necessary and sufficient transparency of our supply chains with due consideration for the demands of our stakeholders.

• Confirming the demand level sought by stakeholders such as our clients, the OECD (Organisation for Economic Cooperation and Development), and industry groups, we will clarify the central due diligence factors that must be created anew in addition to existing structures.
• In addition to the existing 3TG (tin, tantalum, tungsten, gold),
  we will expand our scope of responsible mineral procurement to include cobalt and other minerals.

• We revised our action policy regarding risk assessment targets in our supply chains, such as by adding such new risks as human rights violations.
• We revised Murata's internal regulations after reevaluating decision standards, regular CSR risk assessment structures, and other factors for suppliers.
• In addition to existing battery products, we conducted an inquiry into the cobalt supply chain for all Murata products and began offering refinery data.

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• We will continue due diligence for mineral supply chains and suppliers with a focus on human rights risks.
• Along with commencing CSR procurement efforts that take ESG into account, we will further the appropriate disclosure of relevant information to our stakeholders.

• In order to globally implement Murata's “Basic Policy for Prevention of Cartels and Bribery,” we will work with Murata's overseas control companies to roll out a PDCA cycle of global compliance activities at overseas subsidiaries that include control process monitoring and education.

［Cartel Prevention］

• We will implement control process monitoring at overseas subsidiaries for cartel prevention.

［Bribery Prevention］

• In order to establish a bribery prevention management system, we will examine internal and external trends of stronger regulation and put in place the necessary requirements.
• At Murata and its Japanese affiliated companies, we will implement e-learning regarding bribery.

［Cartel Prevention］

• We investigated the operational status of control process monitoring at overseas subsidiaries for cartel prevention and sampled issues to be resolved.
• We implemented practical study groups and e-learning about cartel prevention for sales and business divisions.

［Bribery Prevention］

• We investigated foreign laws, treaties, initiatives, etc. regarding bribery and clarified crucial information for the maintenance of Murata's bribery prevention management system.
• We implemented e-learning for all regular positions and all management in Japan and urged personnel to agree to confirm and follow Murata's "Basic Policy for Prevention of Bribery."

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［Cartel Prevention］

• We will establish practical guidelines for cartel prevention.
• We will continually implement education for employees, such as practical studies for the prevention of cartels, including at overseas subsidiaries.
• We intend to improve the operation of Murata's cartel control processes and conduct an awareness campaign.
• We will improve the operation of Murata's control process monitoring.

［Bribery Prevention］

• We will update Murata's ”Basic Policy for Prevention of Bribery,” establish a compliance program, and begin an awareness campaign and education.
• Based on third-party evaluation by Transparency International and such, we will implement surveys of high-risk countries and areas, and provide feedback.
• We will expand the scope of internal education regarding bribery prevention and implement it based on job class.

• BCM has become standard for risk-management PDCA to function effectively on a global level and the concept of risk management has been established as part of daily operations.

• We will observe the emergence of new risks in accordance with changes in the business environment on a global level and will consistently respond to such changes.
• We will continue to implement BCP drills assuming the occurrence of earthquakes, judge the efficacy of loss limitation strategies and prevention strategies for risks impeding Murata's business continuity, and take all necessary measures.

• We carried out risk assessments and evaluations twice annually on a company-wide basis and implemented sustained responses to the risks facing Murata.
• Regarding COVID-19, which has emerged as a new risk on a global scale, we established a crisis response team primarily comprising management and implemented sustained measures.
• The execution of BCP drills in expectation of earthquakes was postponed due to the impact of COVID-19.

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• We will observe the emergence of new risks in accordance with changes in the business environment on a global level and will continually respond to such changes.
• While continuing Murata's response to COVID-19, we will accumulate expertise regarding future expected infectious diseases and advance our BCP preparations in expectation of such risk.
• Through actual implementation of BCP drills revision of Murata's BCP, we will judge the efficacy of loss limitation strategies and prevention strategies for risks impeding Murata's business continuity, and take all necessary measures.

• BCM has become standard for risk-management PDCA to function effectively on a global level and the concept of risk management has been established as part of daily operations.

• We will observe the emergence of new risks in accordance with changes in the business environment on a global level and will consistently respond to such changes.
• We will continue to implement BCP drills assuming the occurrence of earthquakes, judge the efficacy of loss limitation strategies and prevention strategies for risks impeding Murata's business continuity, and take all necessary measures.

• In order to respond to increasingly sophisticated cyber-attacks, we collected and analyzed various log data and implemented strategies for responding to questionable communications and malware, etc. in connection with suspicious IT incidents. We also strengthened our data security management and developed policies for responding to new threats.
• In terms of human aspects, we implemented information security education and awareness campaigns, incident response drills, and study groups by job class, etc. in response to the needs of each organization.
• As a result, there were zero cases of data leaks that included personal information or grave information security incidents that led to factory stoppages.

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• By performing log supervision, we will collect and analyze cyber-attack data and determine new threats. By implementing policies necessary for infrastructure or systems in response to risk threats, we will preempt serious IT incidents. We will also revise our rules for managing information security incidents, including overseas, and further increase our risk detection and response capabilities by also utilizing internal audits.
• We will continue to implement information security education for all employees and education and awareness campaigns such as study groups by job class, responding to the needs of individual organizations.
• Murata's objective is for serious security incidents to remain at zero due to the above policies.

［Strengthening Murata's Compliance Structures］

• We plan to strengthen our global compliance structures, including by expanding and strengthening internal reporting systems at overseas subsidiaries.

［Expanding Compliance Education］

• We will determine central topics of compliance that require further work, and plan and hold seminars on these topics.
• We will continue to develop education and awareness campaigns aimed at raising Murata's general level of knowledge and awareness regarding compliance in a broad sense.

［Strengthening Murata's Compliance Structures］

• We will consider expanding and strengthening internal reporting systems at overseas subsidiaries.

［Expanding Compliance Education］

• We will determine important topics that require further work, and plan and hold seminars on these topics.
• We will implement group discussions using appropriate case methods and the like.

［Strengthening Murata's Compliance Structures］

• In addition to an internal contact address for the internal reporting system established at all overseas subsidiaries, we have completed the creation of an external contact address for all major overseas subsidiaries. We reviewed the operational status of the internal reporting system at overseas subsidiaries and evaluated relevant issues.

［Expanding Compliance Education］

• We determined cartels, bribery, and illegality as central topics and held compliance seminars for management staff.
• Designating October as a month for improvements, we held group discussions using ambiguous cases involving compliance, including ethical dilemmas, at Murata and all workplaces of associated companies in Japan.

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［Strengthening Murata's Compliance Structures］

• Based on issues in the internal reporting system at overseas subsidiaries, we will deliberate on the shape of an internal reporting system on a global basis.

［Expanding Compliance Education］

• We will continue to plan and hold seminars regarding central topics.
• We will create a casebook teaching the correct approach to compliance using familiar cases and distribute this casebook to all employees at Murata and affiliated companies in Japan.
• We will hold group discussions on compliance risks while pursuing business objectives at Murata and all workplaces of associated companies in Japan.

• We will strive to increase Murata's corporate value and achieve sustained growth through improving the transparency of Murata's management and the efficacy of our audits.

• We will work on continuing and expanding the appropriate and timely provision of information to board members and invigorating strategic deliberations during board meetings.
• By promoting the continued maintenance of internal oversight, we will achieve a zero occurrence rate of serious problems in Murata's compliance with laws, statutes, internal regulations, etc.
• In response to globalization, we will further implement efficient audits and expand internal oversight.

• We are making sustained improvements based on the results of an analysis and evaluation of the efficacy of Murata's board meetings. (For details, please see Murata's Corporate Governance Report submitted to the Tokyo Stock Exchange.)
  Corporate Governance
• Promoting the continued maintenance of internal oversight, we achieved a zero occurrence rate of serious problems in Murata's compliance with laws, statutes, internal regulations, etc.
• For 15 companies in Japan and overseas, we implemented follow-up audits and maintenance support for internal oversight, and further expanded said oversight.

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• We will work on continuing and expanding the appropriate and timely provision of information to board members and invigorating strategic deliberations during board meetings.
• By promoting the continued maintenance of internal controls, we will achieve a zero occurrence rate of serious problems in Murata's compliance with laws, statutes, internal regulations, etc.
• In response to globalization, we will further implement efficient audits and expand internal oversight.

• We will examine Murata's business value from a non-financial perspective.
• We will determine commercialization processes from a non-financial perspective.
• We will explore business opportunities through societal problems.
• We will quantify the non-financial value of lightweight, miniature, and highly efficient components.

Since we began work on priority issues in FY 2020, we have not specified targets for FY 2019.

• We specified "highly efficient components contributing to a stronger response to climate change" and "lightweight, miniature components promoting sustainable use of resources" as areas of opportunity for contributions by Murata.

• We will discuss and examine business value from a non-financial perspective at Murata's main business divisions.
• We will consider commercialization processes that include a non-financial perspective.
• We will consider business opportunities through societal problems at Murata's main business divisions.
• We will clarify the non-financial value derived from lightweight, miniature, and highly efficient components.