CSR Activities: Targets and Results

• In order to promote our suppliers’ establishment of Greenhouse gas ("GHG" below) 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 GHG emissions to below 1.4 M t-CO₂e (Scope1+2) for
  FY 2021.
• GHG emissions of domestic logistics will be limited to 2.0 kg/million yen in real manufacturing output.
• The range of included factors in logistics GHG emissions will be expanded.

• In order to promote the establishment of GHG 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 GHG emissions will be limited to below 1.52 M t-CO₂e (Scope1+2) .
• 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.
• GHG emissions of domestic logistics will be limited to 2.0 kg/million yen in real manufacturing output.
• The range of included factors in logistics GHG emissions will be expanded.

• In order to promote goal setting for the reduction of GHG aimed at Science Based Targets (SBT), we conducted a survey of the current situation at target suppliers using a questionnaire.
• In cooperation with leading vendors, we verified the status of implementation of energy saving measures at each plant. In addition, we introduced solar power generation equipment to worksites and purchased renewable energy certificates to increase the volume of renewable energy usage. During fiscal 2020, total GHG emissions reached 1.435 M t-CO₂e (Scope1+2).
• We advanced policy recommendations through JCLP as an official member, joined RE100, disclosed information based on TCFD, and strived to promote society-wide climate change measures. We will obtain certification for SBTs during fiscal 2021.
• In domestic distribution, we worked to curb special deliveries and achieved an emissions per basic unit of production output of 1.5 kg/M yen or less.
• We prepared and began operation of an environment to capture data for the purpose of expanding the scope of assessment of GHG emissions.

〇

• Through energy conservation and initiatives to expand renewable energy, total GHG emissions will be kept to no more than 1.4 M t-CO₂e (Scope1+2) in fiscal 2021.
• In order to promote society-wide climate change measures, we will make policy recommendations through JCLP activities, acquire SBT certification, and carry out other initiatives.
• In order to promote goal setting for the reduction of GHG aimed at Science Based Targets (SBT), we will draft a policy to request that suppliers set goals for the reduction of GHG.
• GHG emissions of domestic logistics will be limited to 2.0 kg/million yen in real manufacturing output.
• The range of included factors in logistics GHG 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.

• 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.

• In fiscal 2020 we worked on a single fiscal year target of reducing waste emissions to below the fiscal 2016 – 2018 average unit of production, and achieved.(Equivalent to the average unit requirement for FY 2016 to FY 2018)
• In fiscal 2020 we worked on a single fiscal year target of reducing waste emissions to below the fiscal 2016 – 2018 average unit of production, and achieved.(4% improvement over the target value)
• We examined industry trends and regulations for resource recycling regarding waste and water.
• We created a feasible recycling system for plastic and verify its economic effects.

〇

• 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).
• Survey resource circulation regulations and industry trends.
• We will create a feasible system 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.

• 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.

• We verified the management conditions through internal quality audits and confirmed that the management is being thoroughly carried out according to company standards.
• In anticipation of social currents, legal revisions, and other trends concerning chemical substances, we revised the company standards through cross-functional team activities across the company.
• Based on trends toward legal regulation and the actual circumstances within Murata, we reorganized our thinking about VOC reduction from a global perspective.

〇

• In anticipation of social currents, legal revisions, and other trends concerning chemical substances, we will establish and operate a system which conforms in a systematic way.
• Build a management system for VOC emissions throughout all of Murata.

• 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.

• 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.

• We continued to perform activities originating in the business divisions to reduce the environmental load.
• We carried out the trial operation of an environmentally-friendly design mechanism and discovered points of improvement aimed at a full-scale introduction.

〇

• Promote the mechanism, which takes an environmentally-friendly approach during the product planning and design stages, and deploy it throughout the company.
• Continue to perform activities originating in the business divisions to reduce the environmental load.

［Reduction of Work Accidents］

• We will not allow serious accidents leading to death or lasting impairment to occur.
• The annual accident rate per 1,000 workers (including accidents not accompanied by lost worktime: Internal standards) 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 annual accident rate per 1,000 workers (including accidents not accompanied by lost worktime: Internal standards) 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.

［Reduction of Work Accidents］

• There were no serious work accidents, either domestic or overseas.
• The annual accident rate per 1,000 workers (including accidents not accompanied by lost worktime: Internal standards) was 1.56, which achieved the goal of 1.8 or less.

［Promotion of Health Management］

• We determined the policies for responding to the novel coronavirus infection (COVID-19) and carried out the necessary measures.
  We held an information session about the coronavirus with an industrial physician and provided information to the employees and affiliated companies in a timely manner (results: participation by approx. 3,000 people)
• Developed a body of know-how and a self-assessment tool for one's health and telecommuting environment to institute healthy telecommuting.
  We shared methods of management and communication needed for the safety, peace of mind, and health of the employees with those in managerial positions.
• Reevaluated the health management plan based on environmental changes due to the coronavirus.

〇

［Reduction of Work Accidents］

• We will not allow serious accidents leading to death or lasting impairment to occur.
• The annual accident rate per 1,000 workers (including accidents not accompanied by lost worktime: Internal standards) will be limited to 1.6 or less.

［Promotion of Health Management］

• Enact countermeasures for the new coronavirus infection (COVID-19) which capture such changes.
• Implement the necessary health policies which conform to the data and the actual conditions of the employees.
• Implement an initiative which will lead to the enhancement of stress management.

• 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.

• 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.

• Carried out human rights due diligence through external institutions.
• Implemented periodic investigations of forced labor and child labor aimed at Murata's overseas affiliates.
• Conducted a careful examination of the contents for a reevaluation of the human rights management system.
• Formulated supply chain guidelines.
• Prepared for supply chain audits and implemented human rights and harassment training.
• Examined training contents for the supply chain.
• Promote diversity and inclusion.

• ・Maintained a flexible work system during the coronavirus pandemic and provided mental and physical care to employees as a result of the changes in working styles.
• ・Created video teaching materials about the Murata philosophy and the path of Murata history.
• ・Conducted training utilizing the Murata Innovation Museum.
• ・Achieved a 13.4% ratio of women in technical fields in new graduate career-track hiring.
• ・Debated the target value for the ratio of women in managerial positions at Murata Manufacturing.
• ・Held a study session concerning SOGIE for human resource and public relations managers.
• ・Established a special subsidiary (Murata Cosmos).

〇

• We will enact a PDCA cycle according to the human rights and labor management system at each domestic worksite.
• We globally deployed human rights and labor education and will take action with respect to the human rights risks identified through the human rights due diligence by external institutions.
• Implement CSR audits including human rights and labor for new suppliers of important component materials.
• Confirm the CSR audit policies including human rights and labor for existing suppliers.
• Promote diversity and inclusion.

• ・Execute policies aimed at achieving mentally and physically healthy working styles that are meaningful.
• ・Implement initiatives so that the Murata qualities extolled in the management philosophy are closely understood by the employees.
• ・Continue to aim for a 10% ratio of women in technical fields in new graduate career-track hiring.
• ・Implement specific policies for the promotion of career development and growth for women.
• ・Carry out awareness and information campaigns concerning SOGIE for the employees.

• Based on the philosophy of our founder, Murata aims to become a "presence in local communities that is a source of pride and joy to those communities" all over the world, in order to realize "harmony among people, organization, and society."

• Deepening our connections with local communities through STEAM^*5 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.

• Created Guidelines of Contribution Activities for Society and Community and expanded them to the Murata Group.
• Implemented protective measures for the novel coronavirus infection and conducted visiting classes for programming and career education as well as participated in local events. At the headquarters, there was an increase in the need for school visit classes, and we conducted a greater number of classes for more participants (11 schools and 837 students) than in fiscal 2019.
• Continued to undertake worksite greenification and forest conservation efforts. Himi Murata Manufacturing was awarded the "Japan Greenery Research and Development Center Chairman's Award" for fiscal 2020 by the Japan Greenery Research and Development Center. This site became the 15th Murata Group plant in Japan to win such an award (including honorable mentions).
• Provided various forms of support related to the novel coronavirus according to local needs such as masks and protective clothing to each group company, support for medical workers, and food and water for residents.

〇

• Establish goals for social contribution as a corporation and examine approaches throughout all group companies.
• Each group company will independently establish an area of focus according to local conditions to propose and implement social and local contribution activities in accordance with the Guidelines of Contribution Activities for Society and Community.
• Deepen our relationship with local communities through STEAM and environmental education and promote support for the development of the next generation.
• Be actively involved and continue to engage in forest conservation and local events.

• 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.

• 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.

• Completely reevaluated, issued, and publicized the "Supply Chain CSR Procurement Guidelines" policies concerning CSR procurement.
• Implemented periodic investigations of responsible mineral sourcing through CMRT and CRT.
• Reevaluated the CSR risk assessment used when starting new transactions with a supplier. (Implement from fiscal 2021)

〇

• Employ a new system of CSR risk assessment, which takes ESG into account, for new and existing important suppliers to verify and correct supply chain risks.
• Rebuild the system of risk assessment for mineral supply chains taking into account the EU regulations and other new requirements.
• Continue appropriate information disclosure regarding CSR procurement initiatives and supply chain risks.

• 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 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.

［Cartel Prevention］

• Established practical guidelines for the prevention of cartels.
• Continued to provide practical training and other forms of education to employees, including those at overseas subsidiaries, to prevent cartels.
• Improved the operation of the cartel control process. In addition, we made employees fully aware of the cartel control process through training and internal PR, etc.
• Improved the monitoring operation of the cartel control process.

［Bribery Prevention］

• Reorganized the requirements for the prevention of bribery and started the work to establish a compliance program and update policies.
• Examined the risk survey measures in accordance with the compliance program.
• Expanded in-house training for the prevention of bribery, held e-learning classes by level, and provided education regarding foreign and domestic laws, prohibited matters, and the risks of illegal conduct, etc.

〇

［Cartel Prevention］

• Newly familiarized employees with the "Basic Policy Regarding the Prevention of Cartels".
• Continue to provide practical training and other necessary forms of education and training to employees, including those at overseas subsidiaries, to prevent cartels.
• Reevaluate the control process through control process monitoring.

［Bribery Prevention］

• Update the Basic Policy Regarding the Prevention of Bribery and begin operation of the compliance program.
• Continue in-house training regarding the prevention of bribery and expand the number of educational subjects to deepen the employees' understanding with the implementation of the compliance program.

• The PDCA (Plan-Do-Check-Act) system for risk management at the global level functions effectively, and the concept of risk management has become a part of daily operations.
• Promote the development of BCPs that respond to anticipated risks, to prevent risks that impede our company's business continuity, and to reduce losses in the event that risks materialize.

• 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.

• We carried out risk assessments and evaluations twice annually on a company-wide basis and implemented sustained responses to the risks facing Murata.
• Summarized the BCP regarding the response to the novel coronavirus.
• Implemented BCP training at the headquarters and reevaluated BCP during fiscal 2020.

〇

• 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.

• The PDCA (Plan-Do-Check-Act) system for risk management at the global level functions effectively, and the concept of risk management has become a part of daily operations.

• 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 risky 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.

• Analyzed the network logs and activities in real time and examined monitoring techniques for detection and defense. In addition, we instituted global management to detect and respond to IT incidents.
• Globally conducted annual training for all employees, training for new employees, and other training by level. In addition, we carried out related information security training because of the increase in telecommuting due to the coronavirus pandemic.

〇

Implement the following measures to detect risks, respond to persistent risks, and maintain the current management level.

• Measures pertaining to the human aspects
  Implement internal audits
  Conduct continuous employee training
• Measures pertaining to the technical aspects
  Strengthen internal fraud countermeasures and incident detection and response capabilities
  Implement internal audits
  Vulnerability countermeasures in production areas
• Measures pertaining to the physical aspects
  Vulnerability countermeasures for the disposal of confidential information

［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］

• 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.
• Create and distribute a guidebook to all employees of Murata Manufacturing and its domestic affiliates, using familiar cases to show the correct approach to compliance.
• We will hold group discussions on compliance risks while pursuing business objectives at Murata and all workplaces of associated companies in Japan.

［Strengthening Murata's Compliance Structures］

• Based on issues in the internal reporting system at overseas subsidiaries, we examined the state of the internal reporting system on a global basis.

［Expanding Compliance Education］

• Continued to plan and hold seminars on important themes.
• Created a guidebook using familiar cases which show the proper way to think about compliance and distributed it to all employees within Murata Manufacturing and at domestic affiliated companies.
• Carried out a group debate to think about compliance risks during the execution of business which targeted departmental managers within Murata Manufacturing and at domestic affiliated companies. In addition, the corresponding debates were also held and expanded to each workplace.

〇

［Strengthening Murata's Compliance Structures］

• Continue to consider a review of the internal reporting system and its operation based on legal amendments.
• Strengthen the compliance promotion systems on a global basis.

［Expanding Compliance Education］

• Continue to hold seminars on important themes and other initiatives.
• Plan and execute educational and awareness activities to globally disseminate the "Corporate Ethics Policy and Code of Conduct."
• Continue to hold group debates to think about compliance risks during the execution of business.

• 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 22 companies in Japan and overseas, we implemented follow-up audits and maintenance support for internal oversight, and further expanded said oversight.

〇

• 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.