Mid-term Targets (CSR Activities: Targets and Results)

Climate change has caused a variety of environmental issues around the world in recent years. Murata aims for a continuous cycle of social value and economic value by promoting climate change countermeasures from the perspective of both its own environmental initiatives and its business activities, in accordance with the Murata Philosophy. Murata has set this key issue in order to contribute to the decarbonization of society.

We aim to reduce the amount of greenhouse gases (GHG) emitted during manufacturing, by operating in accordance with RE100 and SBT.

• FY 2024 targets:

  Amount of GHG emissions (Scope1+2) :
  20% reduction vs. fiscal 2019 (1.28 million t-CO₂e or less)
  Renewable energy implementation rate: 25%

• FY 2030 targets:

  Amount of GHG emissions (Scope1+2) :
  46% reduction vs. fiscal 2019 (0.87 million t-CO₂e or less)
  Amount of GHG emissions (Scope3) :
  27.5% reduction vs. fiscal 2019 (3.25 million t-CO₂ or less)
  Renewable energy implementation rate: 50%

• FY 2050 targets:

  Renewable energy implementation rate: 100%

• Implemented measures including energy conservation and renewable energy promotion as well as renewable energy certificate acquisition, achieving a 16% reduction (1.34 million t-CO₂e) in GHG emissions (vs FY 2019) (Scope 1+2) and 24% renewable energy in FY 2022.

• In FY 2022, began verifying a modal shift through discussions with major suppliers and cooperative efforts with transport operators, with the goal of reducing CO₂ in our upstream value chain. (Scope 3 emissions in FY 2022: 4.21 million t-CO₂)

• Installed new systems combining solar panels and storage batteries in four domestic plants, achieving a cumulative annual total CO₂ reduction of 1,897 t-CO₂e across the four plants.

• Implemented approximately 570 individual energy-saving measures throughout Murata (estimated reduction of 47,000 t-CO₂e per year).

• Constructed a multistory parking garage with a green design, which is equipped with double-sided solar panels and wall-mounted solar panels at a plant in Wuxi Murata Electronics Co. (China). This is the first such structure built by Murata.

• Signed an agreement to procure power derived from additional renewable energy (70 MW), through a virtual power purchase agreement (PPA) scheme from Mitsubishi Corporation.

• As a response to TCFD, in addition to the qualitative evaluation performed in FY 2022, Murata implemented quantitative analyses for transition risks and opportunities during 4°C scenarios (IPCC RCP 8.5, IEA/STEPS) and 1.5/2°C scenarios (IPCC RCP 1.9 and 2.6, IEA/SDS).

• We will implement effective energy conservation measures and engage in initiatives to calculate our carbon footprint (CFP), with the main objective of visualizing our energy usage.

• We will utilize the Sustainability Investment Promotion System (internal carbon pricing system, easing investment payout periods, etc.) to accelerate the promotion of energy conservation and renewable energy.

• We will investigate the long-term procurement of renewable energy from power companies and from off-site.

• We will work with suppliers to investigate refining and using data, and will work with transport operators to determine the scope and benefits of implementing a modal shift.

• Based on renewable energy promotion and greenhouse gas reduction initiatives, Murata will continue to consider establishing roadmaps and strategies to achieve carbon neutrality.

As the global population increases, pressing social issues such as resource depletion and increased waste have become more severe. Murata has set "use of sustainable resource" as a material issue in order to address these social issues and to contribute to cultural development by achieving the sustainable use of resources in its own business activities.

Realize sustainable resource usage within Murata’s business activities, and contribute to the development of culture through co-creation with partners.

• FY 2024 targets:

  Rate of use of sustainable resources ^*1:
  1% improvement from fiscal 2021 results
  Resource recovery rate ^*2:
  5% improvement from fiscal 2021 results

• FY 2030 targets:

  Rate of use of sustainable resources: 25%
  Resource recovery rate: 50%

• FY 2050 targets:

  Rate of use of sustainable resources: 100%
  Resource recovery rate: 100%

• In order to determine our rate of use of sustainable resources and resource recycling rate, we continued to survey the amount of our procured resources, their recycling ratio, and actual waste treatment results.

• We continued to implement measures to reduce waste.

• We began horizontal recycling of PET film used in the multilayer ceramic capacitor production process at some business sites, in order to recycle resources.

• We will continue initiatives to determine the rate of use of sustainable resources among suppliers.

• We will continue initiatives to determine the resource recycling rate for each business division.

• We will continue to implement initiatives at each business division and business site to serve as leading examples in achieving our medium- to long-term goals.

Recently, stricter environmental regulations have been enacted in many countries. Murata has set this key issue in order to pursue sustainable business processes, such as reducing environmental burden as much as possible by promoting initiatives to proactively prepare for these regulatory changes.

Murata aims to reduce environmental burden and realize manufacturing that harmonizes with society by pursuing sustainable business processes that are not restricted to conventional frameworks.

• FY 2024 targets:

  Serious environmental incidents: 0
  Amount of VOC emissions: Equal to or lower than fiscal 2021 emissions
  Chemicals used for cleaning do not contain specified VOCs

• FY 2030 targets:

  Serious environmental incidents: 0
  Amount of VOC emissions: 30% reduction vs. fiscal 2021

• During fiscal 2022, 4 serious environment incidents occurred. We determined "what Murata wants to be" in order to reduce the risk of serious environmental incidents occurring and defined the issues and organizational measures for the purpose of achieving this in fiscal 2024.

• We calculated VOC emissions from each business division and business site and determined our current situation, in order to work toward reducing VOC emissions.

• We developed a system for checking whether chemicals used for cleaning contain specified VOCs prior to using the chemicals. Currently, we are implementing trial operations. Each business division has begun formulating alternate measures and schedules.

• We will be implementing the measures we formulated in fiscal 2022 to reduce the risk of serious environmental incidents occurring. In fiscal 2023, based on our knowledge of past incidents, we will identify all the risks of incidents occurring at each business site and reexamine systems that enable the mitigation of these risks.

• We will formulate and implement VOC emission reduction measures and schedules at applicable business sites.

• We will implement initiatives to build a scheme for replacing chemicals used for cleaning that contain specified VOCs.

A foundation of CS and ES, which are Murata’s important values, is the physical and mental health of employees. Based on this recognition, Murata has set this key issue in order to implement health management that ensures safety and security.

We aim to provide employees with safe workplaces where each and every employee can feel healthy and work with peace in mind.

• FY 2024 targets:

  Fatal serious incidents: 0
  Annual incident rate (per 1,000 workers): Less than 1.35
  Fire incidents: 30% reduction compared with average for fiscal 2019-2021
  Subjective health view: 80% (with 14% reporting extremely good health)

• FY 2030 targets:

  No Fatal serious incidents, no employee injuries or incidents, and a vibrant workplace
  Fatal serious incidents: 0
  Annual incident rate (per 1,000 workers): Less than 1.0
  Fire incidents: 0
  Subjective health view: 80% (with 20% reporting extremely good health)

• In fiscal 2022, we had no serious fatal incidents, and achieved an industrial incident rate per 1,000 workers of 1.44.

• We implemented initiatives to reduce industrial incidents, through such measures as sharing incident information, holding meetings, and introducing new risk assessments that encompass more types of risk.

• In fiscal 2022, we were able to reduce the number of fire incidents 30% compared with the average number of incidents from fiscal 2019 to fiscal 2021. We analyzed the causes of fire incidents and then implemented measures to prevent recurrence.

• The subjective health view reached 77% in fiscal 2022. We shared examples of initiative execution based on our Health Management Plan, and conducted discussion meetings.

• We will continue to introduce new risk assessments and implement measures to support the health of older workers with an eye on the retirement age extension system, which will be extend the retirement age in fiscal 2024 to 65 years of age, in order to further reduce industrial incidents.

• In order to ensure that new risk assessments suit workplaces, we will build a training system capable of allowing training to be conducted within business sites.

• We aim to improve the subjective health view by implementing various initiatives based on our Health Management Plan, such as establishing systems to promote health management, implementing health measures, enhancing stress management, and increasing health literacy.

As stated in the Murata Philosophy, “We contribute to the advancement of society by creating innovative products and solutions,” Murata has grown together with our customers through innovation. Innovation is the result of diverse individuals helping each other to improve. It is essential for the development of culture to respect human rights of all stakeholders involved, including those in the supply chain. Based on that belief, Murata has set this key issue.

We aim for sustainable growth leveraging diverse human resources globally, understanding and respecting the concept of human rights.

• FY 2024 targets:

  Percentage of overseas indirect employees^*3 with experience working at other sites: 7%
  Ratio of women in managerial positions: 4% (Non-consolidated)
  A PDCA cycle according to the human rights management system must be implemented at each worksite.

• FY 2030 targets:

  Percentage of overseas indirect employees with experience working at other sites: 10%
  Ratio of women in managerial positions: 10% (Non-consolidated)

• The percentage of overseas indirect employees with experience working at other sites reached 5.3% in fiscal 2022. We expanded systems and measures for employees to gain diverse global work experience.

• The ratio of women in managerial positions (single-organization data) reached 3.5% in fiscal 2022. In order to increase the ratio of women in managerial positions, we implemented measures to plan appropriate training, and conducted lectures for organization managers and dialog sessions for female employees.

• We implemented operations according to our human rights management system at all domestic business sites, and also began expanding these to overseas business sites.

• In addition to conducting training on the topic of “Business and Human Rights” we continued to engage in initiatives aimed at raising human rights awareness among employees.

• We established a “Human Rights Committee” as a subcommittee of the CSR Management Committee.

• We implement measures such as by enhancing efforts to hire women, creating appropriate training plans for candidates, and offering awareness-raising for personnel in managerial positions.

• In addition to human rights management systems that have conventionally been operated at each of our business sites, we will conduct human rights risk assessments to identify human rights risks throughout Murata and our supply chain with external experts.

• While operating the human rights management system at our domestic and overseas business sites, we aim to further enhance its effects through methods such as by implementing human rights training for our site managers, supervisors, and representatives with recent international trends in mind.

Under our founder’s philosophy, Murata hopes to continue to be a company whose presence in local communities is a source of pride and joy to those communities as well as a company that our employees are proud and happy to work for. To this end, Murata has contributed to society as a member of local communities. In order to meet increased expectations from the local communities where Murata operates, we believe it is necessary to reinforce the initiatives to achieve the philosophy. For this reason, Murata has set this key issue.

We aim to keep in harmony with local communities regardless of changes in the business environment and to be a company that makes communities proud.

• FY 2024 targets:

  Must continue to value communication with local residents and promote contribution activities with the goal of resolving local issues.

• FY 2030 targets:

  Must continue to value communication with local residents and promote contribution activities with the goal of resolving local issues.

• We identified our impact in regions where group companies are located, identified local issues and needs, and independently planned and implemented contribution activities, in accordance with our Guidelines of Contribution Activities for Society and Community.

• In addition to displaying our initiatives and ideas concerning social and local community contribution activities on our website, we have continued to issue implemented activities on our “social contribution activity blog.”

• We have contributed to boosting employee morales and vitalizing local communities by implementing social contribution activities through sports such as by signing a professional contract with local professional golfer Haruka Kawasaki.

• We have worked with local educational institutions since 2019 and provided the programming experience “Control the Teacher Robot!!” as a school visit that enables children to acknowledge programming and logical thinking in which children will learn to solve problems on their own. During fiscal 2022, we had 20 schools and 784 children participate.

• At Fukui Murata Manufacturing (Fukui Prefecture) and Izumo Murata Manufacturing (Shimane Prefecture), through dialog with local governments, we have dispatched interpreters and donated translation machines to elementary schools and junior high schools, with a large number of children of Brazilian nationals of Japanese descent who work for our partner companies, in order to support Japanese language classes and improve communication.

• Through dialog with local communities, we will work with our employees to implement measures required in each region to address local issues and needs confronting Murata's sites.

• Murata will attempt to become a company whose presence in local communities is a source of pride in local communities through increased recognition of Murata's regional contribution efforts by engaging in initiatives to release internal and external information at each site.

Murata’s CSR Charter and Corporate Ethics Policy and Code of Conduct define how we engage in appropriate transactions with suppliers, how we comply with antitrust laws, and how we prevent bribery and other corruptions. We aim to engage in fair business transactions with these practices serving as a foundation for our daily business activities and duties. At Murata, we recognize the importance of conducting fair business transactions in order to realize healthy sustainable growth and to earn social trust while expanding business globally. Therefore, Murata has set this key issue.

We aim to maintain zero occurrence of major violation of appropriate business transactions and continue to be a company trusted by society.

• FY 2024 targets:

  <Antitrust laws>
  Laws, regulations, and internal rules/procedures must be deployed and thoroughly implemented on a global basis.
  <Bribery>
  In regions with a high corruption index, bribery management and prevention systems compliant with company policy must function and systems for reporting to headquarters must be established.

• FY 2030 targets:

  <Antitrust laws>
  Laws, regulations, and internal rules/procedures must be deployed and thoroughly implemented on a global basis.
  <Bribery>
  All affiliated companies must establish bribery management and prevention systems compliant with company policy, and must maintain zero incidents of bribery/corruption.

<Antitrust laws>

• We improved how information on internal rules and procedures is made known throughout the company, in order to help ensure that internal rules and procedures for preventing violations of the Antitrust laws are administered properly.

• We conducted practical training on preventing cartels, domestically and overseas.

<Bribery>

• We continued to expand our bribery management and prevention systems.

• We engaged in initiatives to enhance employee training on bribery, in order to enhance the understanding of our employees.

<Antitrust laws>

• We will continue to provide information and training on internal rules and procedures related to preventing cartels, and will raise awareness and improve compliance among employees.

<Bribery>

• We will finish introducing our bribery management and prevention systems, and then will establish a monitoring system.

• We will conduct training to enhance employee understanding of bribery, and will continue to prevent bribery and corruption from occurring.

Companies are expected to prioritize human life and safety while quickly resuming product supply and to fulfill social obligations, even if an emergency arises with a significant impact on business. To become the top components manufacturer in the world, Murata has set this as a material issue with the understanding that promoting global business continuity management is a key issue.

We aim to build BCM organizations in domestic and overseas business sites and plants, in order to prepare for disaster.

• FY 2024 targets:

  BCP that satisfies requirements must be established at domestic worksites and plants.
  BCP for handling disasters that might occur in our overseas locations must be formulated at each worksite and plant.

• FY 2030 targets:

  A company-wide BCM^*4 must be established so that, if a disaster occurs, sites not affected by the disaster can cooperate quickly in order to maintain the business continuity of the entire Murata Group.
  Autonomous BCM activities must be performed, such as conducting periodic trainings at worksites and plants to verify and improve BCP effectiveness.
  Measures must be taken for a Nankai Trough earthquake, which is expected to cause major damage.

• Domestically, Murata has continued to develop BCPs by reviewing possible scopes of damage to infrastructures that may occur at each business site and factory due to natural disasters, estimated production suspension periods and restoration periods of each of these processes, and defined advance measures in order to prevent customer production supplies from stopping.

• Overseas, we began initiatives to revise BCPs to reach the same level as those in Japan, after considering natural disaster risks and other data in each country.

• We will continue to make revisions to achieve effective BCPs to prevent customer production supplies from stopping at domestic and overseas business sites and factories by reviewing possible natural disaster risks and scope of damage.

The risks of information leaks caused by internal fraud targeting information retained by companies and by disruptions to business activities caused by cyber attacks have been increasing in recent years. In order to provide reassurance to all stakeholders, we believe that it is important to protect the various types of information we retain, including technical, management, and personal, which is the source of Murata’s competitiveness. This includes both information handled by the company and information provided by clients, customers, and partners. For this reason, Murata has set this key issue.

We aim to minimize risks by routinely implementing the information security risk management PDCA cycle, in order to prevent potentially serious incidents from happening.

• FY 2024 targets:

  Incidents determined to be potentially serious: 0
  Employee training ratio^*5 : 100%

• FY 2030 targets:

  Incidents determined to be potentially serious: 0
  Employee training ratio: 100%

• In fiscal 2022, we had one incident determined to be potentially serious.

• We achieved an employee training ratio of 96%.

• We continue to implement human, technical, and physical measures based on international standards (ISO27001), in order to address new risks and persistent risks, and to maintain and improve our information security level.

• In response to the growing importance of information security in the automotive industry, our major domestic and overseas sites (including our headquarters) have been certified under TISAX, an information security evaluation conducted by the German Association of the Automotive Industry. Going forward, we will continue to get more of our sites certified and further enhance our information security level.