Mid-term Targets (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 million 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.

• Received SBT certification.
• Implemented energy-saving/renewable energy/energy certificate measures, achieving GHG emissions of 1.399 million t-CO₂e^*2 (Scope1 + 2) in FY 2021, achieving the goal.
• In real production primary units, GHG emissions in domestic logistics for FY 2021 were 1.4 kg/million yen^*2, achieving the goal.
• In conjunction with starting investigation into a system for identifying GHG emissions in distribution, shipping companies have cooperated on low load operation management.

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• 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.

• For FY 2021, we saw 12%^*3 improvement at the same output level, achieving the goal.
• For FY 2021, we saw 16%^*3 improvement at the same output level, achieving the goal.
• Investigated waste material and water-related resource recycling regulations and industry trends.
• Built a feasible scheme, verified its economic effectiveness, and organized the issues.

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• 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.

• Identified social trends regarding chemical substances and on revisions to laws, reflected these in the annual revision of the company standards, then developed a systematically compatible control system.
• Application to delivered items through green procurement and internal controls have allowed us to maintain operations that reflect internal and external requests in product specifications.
• Verified the management conditions through internal quality audits and confirmed that the management is being thoroughly carried out according to company standards.
• Based on trends toward legal regulation and the actual circumstances within Murata, we established medium- to long-term goals on VOC reduction from a global perspective.

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• 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.

• Continued to perform activities originating in the business divisions to reduce the environmental load.
• Studied the mechanism which takes an environmentally-friendly approach during the product planning and design stages.

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［Reduction of work accidents］

• We will not allow serious accidents leading to death or lasting impairment to occur.
• 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.

[Reducing work-related accidents]

• There were no serious industrial accidents that led to death or after-effects.
• Annual accident rate (per 1,000 workers) (including accidents not accompanied by lost worktime: internal standards) was 1.70, which did not achieve the goal of 1.6 or less

[Health management promotion]

• Reevaluated the health management plan based on environmental changes due to COVID-19.
• Implemented measures based on the health management plan.
• Established the Health Management Plan Conference to increase the effectiveness of the health management plan, and made innovations with Industrial Physician Conference where industrial physicians gather and the Health Staff Conference where public health nurses and clinical nurses participate.
• Determined the policies for responding to the novel coronavirus infection (COVID-19) and carried out the necessary measures.
• Held information sessions concerning COVID-19 (basics, Delta variant, Omicron variant), and an online vaccination briefing before workplace vaccinations took place.

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• 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.

• The "human rights and labor" management system has taken hold in most worksites with improvements being made through the PDCA cycle. However, the system is still insufficient in some areas such as new locations and small-scale worksites.
• A wide range of human rights education has been implemented using e-learning. Also, lectures have been given by outside experts.
• Made progress in promoting understanding of diversity and inclusion though messages from the management and workshops.
• Implemented initiatives so that the Murata qualities extolled in the management philosophy are closely understood by the employees.
• Carried out awareness and information campaigns concerning SOGI for the employees.
• Achieved a 14.8% ratio (fiscal 2021 results) of women in technical fields in new graduate career-track hiring.
• Established the target value for the ratio of women in managerial positions at Murata Manufacturing.
• Established a special subsidiary (Murata Cosmos) to provide opportunities for persons with disabilities to feel a sense of purpose in working.

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• 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."

• Enacted the Guidelines of Contribution Activities for Society and Community, and each group company took the lead in planning and implementing contribution activities in accordance with the guidelines.
• Deepened our relationship with local communities through STEAM^*5 and environmental education and promoted support for the development of the next generation.

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• 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.

• Established the "Murata Group Supply Chain CSR Procurement Guidelines," distributed them to suppliers, and requested that they promote CSR activities based on the guidelines. (⇒Develop and rebuild the conventional system)
• Conducted a CSR assessment to evaluate the state of compliance at suppliers, and provided advice to those with issues while requesting corrective measures.　(⇒Evaluation of the state of CSR compliance at suppliers)
• As part of responsible mineral procurement initiatives, we disclosed the total number of smelters and refineries and the total number of conformant smelters and refineries to stakeholders to ensure a more transparent supply chain. (⇒Sufficiently transparent supply chain)

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• 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]

• Established practical guidelines for preventing cartels and continuously implemented global education and training for employees.
• Improved the monitoring operation of the cartel control process.

[Bribery prevention]

• Revised and enhanced the Basic Policy for Prevention of Bribery and enacted regulations that establish a bribery prevention management system.
• Expanded in-house training by holding lectures by level on prevention of bribery.

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• 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.

• Implemented risk surveys and evaluation across the entire company twice per year and continuously handled the risks faced at Murata. We also built a system for keeping PDCA working to ensure that risk management is part of everyday tasks, such as introducing a monitoring system via the Audit Department.
• Through actual implementation of BCP drills, we judged the efficacy of loss limitation strategies and prevention strategies for risks impeding Murata's business continuity, and took all necessary measures.

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• 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.

• Continuously implemented the following measures to detect risks, respond to persistent risks, and maintain the current management level.
  1. Measures pertaining to the human aspects
     ・Implement internal audits
     ・Conduct continuous employee training
  2. Measures pertaining to the technical aspects
     ・Strengthen internal fraud countermeasures and incident detection and response capabilities
     ・Implement internal audits
     ・Vulnerability countermeasures in production areas
  3. Measures pertaining to the physical aspects
     ・Vulnerability countermeasures for the disposal of confidential information
• Incident where a Murata outsourcing partner inappropriately handled personal information and other data^*6

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［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.

[Strengthened compliance systems]

• Improved and strengthened the internal reporting system on a global basis. Also formulated strengthened compliance systems on a global basis.

[Compliance training enhancement]

• Selected important compliance themes that should be undertaken, then planned and conducted a seminar.
• Continuously engaged educational and awareness activities to extensively raise awareness and general knowledge of compliance on a global basis through dissemination of the "Corporate Ethics Policy and Code of Conduct."

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• 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.

• Continued evaluation and analysis of the effectiveness of the board of directors and made improvements in effectiveness.
• In regard to appointment and remuneration of board members, we ensured independence thanks to independent outside directors consisting of a majority of committee members, and enhanced transparency by reviewing the system and including more information for disclosure.
• Continuously developed and expanded internal controls.

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