Targets and Results (FY 2022-2024)

Environment
Social
Governance

At Murata, we have identified key issues originating from social issues, and have made use of various measures in our efforts to make improvements as part of achieving our ideals. Our results for fiscal 2022 through fiscal 2024 are as follows.

◯: Achieved　△: Some targets unachieved　✕: Unachieved

Environment

Reinforcement of climate change countermeasures

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Background of setting the material issues
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.
Our goal
We aim to reduce the amount of greenhouse gases (GHG) emitted during manufacturing, by operating in accordance with RE100 and SBT.
FY 2022 - 2024 Medium-term Goals	FY 2022 - 2024 Medium-term Results	Evaluation
GHG emissions (Scope1,2) : 1,280 kt-CO₂e (20% reduction vs FY2019) Renewable energy sourcing : 25%	GHG emissions (Scope1,2) : 1,044 kt-CO₂e (35% reduction vs FY2019) Renewable energy sourcing : 39.2% <Major initiatives> Renewable energy: Study and start of long-term renewable energy procurement through on-site, off-site, and power companies. Energy saving: Calculation and improvement of the accuracy of carbon footprint of products (CFP^*1) with the main objective of visualizing energy use and identifying ways to save energy. Scope3 reduction: Accelerating data refinement in collaboration with suppliers by replacing current data with primary data; expansion of modal shifting.	◯

*1
CFP: Carbon Footprint of Product. It calculates the amount of GHG emitted throughout the entire lifecycle.

Use of sustainable resources

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Background of setting the material issues
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 resources" 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.
Our goal
Realize sustainable resource usage within Murata’s business activities, and contribute to the development of culture through co-creation with partners.
FY 2022 - 2024 Medium-term Goals	FY 2022 - 2024 Medium-term Results	Evaluation
Rate of use of sustainable resources^3 : Improvement of 1% from fiscal 2021 results (approximately 15%^4) Resource recycling rate^*5 : Improvement of 5% from fiscal 2021 results (36.0%)	Rate of use of sustainable resources: approximately 15% Resource recycling rate: 40.3% <Major initiatives> We began horizontal recycling of PET film used in MLCC production at some business sites. We decided to invest in R PLUS JAPAN (RPJ) in order to create a global plastic recycling scheme for raw materials, from use to disposal. We had a third-party organization verify that inner layer copper foil materials used in multilayer resin substrates are 100% recycled materials in compliance with ISO 14021, in order to establish trust. We worked toward recycling silver material in layered filters and inductors, improving our resource recycling rate and rate of use of sustainable resources.	✕

*3
Rate of use of sustainable resources: This indicates weight percentages of recycled materials of 24 resources with a high risk of depletion.
*4
The rate of use of sustainable resources is merely an estimate, as public information on recycling rates is used for calculation.
*5
Resource recycling rate: This indicates weight percentages of Murata’s recycled waste (waste + valuables) resources.

Prevent pollution and manage chemical substances

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Background of setting the material issues
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.
Our goal
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 2022 - 2024 Medium-term Goals	FY 2022 - 2024 Medium-term Results	Evaluation
Serious environmental incidents^*6 : 0 Amount of VOC emissions: Equal to or lower than fiscal 2021 emissions Chemicals used for cleaning do not contain specified VOCs	Serious environmental incidents FY 2022: 4 FY 2023: 4 FY 2024: 2 Amount of VOC emissions: (FY 2021 emissions: 1,910t ) FY 2022: 1,690t FY 2023: 1,310t FY 2024: 1,544t We eliminated the use of chemicals used for cleaning containing specified VOCs, to the extent technically possible. We will work toward eliminating even more substances. <Major initiatives> During fiscal 2022 to 2024, we conducted initiatives to prevent on-premises chemical substance leaks, with the understanding that a minor leak could cause a serious environmental incident. As a result, we were able to reduce the number of serious environmental incidents. We will continue to work toward preventing serious environmental incidents from occurring. We were able to achieve our VOC emissions goal through engaging in proactive efforts such using established exhaust treatment methods and reducing amounts used.	△

*6
Serious environmental incident : An accident where a chemical substance is leaked outside of our property that exceeds legally regulated values or that alarms local residents (Murata takes pollution prevention seriously, and records data even outside of levels subject to administrative action or orders).

Social

Secure and safe workplace and health management

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Background of setting the material issues
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.
Our goal
We aim to provide employees with safe workplaces where each and every employee can feel healthy and work with peace in mind.
FY 2022 - 2024 Medium-term Goals	FY 2022 - 2024 Medium-term Results	Evaluation
Serious industrial accidents: 0 Serious disasters: 0 Industrial incident rate per 1,000 employees (Murata's unique standard of also counting incidents that do not require time off from work): Less than 1.35 Fire incidents: 7 or less Self-Rated Health: 80%	Serious industrial accidents: 0 Serious disasters: 6 Industrial incident rate per 1,000 employees (Murata's unique standard of also counting incidents that do not require time off from work): 1.26 Fire incidents: 7 Self-Rated Health: 78% <Major initiatives> Although we were unable to achieve some of our goals, we developed new risk assessments to cover and identify a wider variety of risks, and implemented initiatives based on our Health Management Plan. We will continue to work toward achieving our goals.	△

Respect for human rights and diversity

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Background of setting the material issues
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.
Our goal
We aim for sustainable growth leveraging diverse human resources globally, understanding and respecting the concept of human rights.
FY 2022 - 2024 Medium-term Goals	FY 2022 - 2024 Medium-term Results	Evaluation
Percentage of overseas indirect employees^*7 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.	Percentage of overseas indirect employees with experience working at other sites: 7.8% Ratio of women in managerial positions: 4.0% We implemented a PDCA cycle in accordance with our human rights management system at all domestic and overseas business sites <Major initiatives> In addition to sharing information on the importance of working at different sites around the world with colleagues, we worked toward increasing the number of employees with global work experience, such as establishing connections between sites and creating environments in which transferred employees can work without worry. We selected candidates, created training plans, and conducted career training to increase the ratio of women in managerial positions. We enhanced compliance with labor rights within the Murata Manufacturing Group by conducting operations (risk assessments, risk prevention and corrective actions, and training) at domestic and overseas business sites in accordance with our human rights management system. We conducted due diligence on human rights within our supply chain including Murata Manufacturing Group plants and suppliers, under direction of the "Human Rights Committee."	◯

*7
Applies to overseas local staff, excluding those transferred from Japan to overseas

Coexistence with local communities

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Background of setting the material issues
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.
Our goal
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 2022 - 2024 Medium-term Goals	FY 2022 - 2024 Medium-term Results	Evaluation
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. We continued to conduct "Control the Teacher Robot!!," a programming exercise we have been running since 2019. These school visits are planned with the goal of allowing children to learn about programming and logical thinking, by solving problems on their own. At Murata Electronics North America, Inc. (United States), in FY 2022, we launched the employee-led "Count mea in" CSR program. “Count mea in” is an employee-led volunteer activity in which employees form working groups to determine and execute volunteer activities required in the region. Murata Manufacturing signed a comprehensive collaboration agreement with the goal of contributing toward the development of local communities and the creation of sustainable towns in Nagaokakyo, where Murata Headquarters is located. As the first part of the agreement, we redeveloped the plaza in front of the east exit of JR Nagaokakyo Station. We applied Murata technology in promoting carbon-free operations in the plaza in front of the east exit of JR Nagaokakyo Station, and contributed toward creating prosperity. As the second part of the agreement, we launched a private-public redevelopment project for Nagaoka Park, which is a popular rest and relaxation spot for residents, located in the center of Nagaokakyo.	◯

Governance

Appropriate business transactions

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Background of setting the material issues
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.
Our goal
We aim to maintain zero occurrence of major violation of appropriate business transactions and continue to be a company trusted by society.
FY 2022 - 2024 Medium-term Goals	FY 2022 - 2024 Medium-term Results	Evaluation
<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.	<Antitrust laws> We continued to train our employees all over the world, and conducted monitoring with the aim of ensuring compliance with laws, regulations, internal rules, and procedures. <Bribery> In regions with a high corruption index, we introduced bribery management and prevention systems compliant with company policy, and established a system for reporting to headquarters.	◯

Business Continuity Management (BCM)

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Background of setting the material issues
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.
Our goal
We aim to build BCM organizations in domestic and overseas business sites and plants, in order to prepare for disaster.
FY 2022 - 2024 Medium-term Goals	FY 2022 - 2024 Medium-term Results	Evaluation
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.	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. This has been completed at 33% of our business sites and plants, and we plan for this to be completed at our other sites during fiscal 2025. Overseas, we continued to revise BCPs to reach the same level as those in Japan, after considering natural disaster risks and other data in each country.	△

Information security

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Background of setting the material issues
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.
Our goal
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 2022 - 2024 Medium-term Goals	FY 2022 - 2024 Medium-term Results	Evaluation
Incidents determined to be potentially serious: 0 Employee training ratio^*8 : 100%	Incidents determined to be potentially serious: 1 Employee training ratio = 100% <Major initiatives> An incident occurred where a third party gained unauthorized access to the Murata network. We continue to work toward preventing recurrence and strengthening our information security measures, based on information such as the results of investigating this incident. We also implemented annual training, phishing e-mail exercises, new employee in-house training, and other forms of training targeting all employees to increase awareness of information security.	△

*8
Ratio = (Number of sites that have conducted training) / (Total number of sites)

Key Environmental and Social Issues (Materiality)