Guided by the Essence of Toshiba, Toshiba Group works on material issues that could impact business activities from a medium and long-term perspective in accordance with the Sustainability Policy and promotes sustainability management that contributes to the development of society.
We have tackled the material issues identified in 2013 by regularly confirming their status. However, response to climate change is now required on a global scale, and social issues are changing according to various perspectives as seen in the SDGs adopted by the United Nations. Toshiba Group also reviewed its businesses. Accordingly, we re-identified new material issues in FY2021.
We position the material issues under the Essence of Toshiba and the Sustainability Policy, and will work on initiatives Group-wide.
Toshiba Group’s Material Issues
We believe that in order for people and businesses to survive, it is vital that the earth, in which we live, is safe, stable, and a place that humans can thrive. Guided by the Essence of Toshiba, our business activities contribute to finding solutions to a range of social issues and supporting the sustainable growth of society, in consideration of not only the present global environment but also the planet in the future. We recognize the importance of maintaining a management foundations with integrity and transparency to support our business activities, and, to that end, have set out the following as material issues to be addressed by Toshiba Group so as to increase our corporate value.
| Vision for 2030 | Material Issues | |
|---|---|---|
| For the irreplaceable global environment in which we live | Promote corporate activities with full consideration for the global environment throughout our value chain, from design, procurement, manufacturing, logistics and sales, through to disposal. |
|
| For respect of human rights, to nurture people and technology, and to give back to society | Encourage every Group employee to feel pride and fulfillment in their work, and to harness creativity and technology in collaborating with business partners to realize rich value. |
|
| For further strengthening thorough governance | Practice transparent corporate governance and optimal internal controls; and execute management with integrity, trusted by stakeholders. |
|
| Vision for 2030 | Material Issues | |
|---|---|---|
| For the irreplaceable global environment in which we live | Promote corporate activities with full consideration for the global environment throughout our value chain, from design, procurement, manufacturing, logistics and sales, through to disposal. |
|
| For respect of human rights, to nurture people and technology, and to give back to society | Encourage every Group employee to feel pride and fulfillment in their work, and to harness creativity and technology in collaborating with business partners to realize rich value. |
|
| For further strengthening thorough governance | Practice transparent corporate governance and optimal internal controls; and execute management with integrity, trusted by stakeholders. |
|
In order to ensure a bright future for people and the planet, Toshiba Group is aiming to realize carbon neutrality and a circular economy.
Specifically, we will make maximum use of the power of data to build infrastructure that everyone can enjoy in the safe and secure life and a connected data society that will ensure social and environmental stability.
We recognize that the “strengthen cyber resilience”, which is indispensable to promoting data-based business, the “strengthen R&D to stimulate innovation”, which forms the foundation of our business, and the “secure, retain and train human resources” are material issues especially tied to our business deeply., Toshiba Group address all our material issues including these with integrity.
KPIs
The Sustainability Strategy Committee decides on KPIs in line with material issues and we work on them.The Sustainability Promotion Committee monitors efforts related to these items to strengthen future initiatives.
For the irreplaceable global environment in which we live
Respond to Climate Change
| KPIs | FY2022 Targets | FY2022 Achievements | FY2023 Targets |
|---|---|---|---|
| Total GHG generated from business activities: | 1.02 million t-CO2 | 0.77 million t-CO2 | 0.98 million t-CO2 |
| Reduction rate of GHG emissions from products and services associated with power supply (compared to FY2019) | 11.4% reduction | 70.4％ reduction | 13.6% reduction |
| Reductions in GHG emissions contributed by products and services associated with renewable energy supply (cumulative total from FY2021) | 28 million t-CO2 | 50 million t-CO2 | 43 million t-CO2 |
| Reductions in GHG emissions contributed by products and services associated with energy consumption (cumulative total from FY2021) | 41 million t-CO2 | 38 million t-CO2 | 57 million t-CO2 |
| KPIs | FY2022 Targets | FY2022 Achievements | FY2023 Targets |
|---|---|---|---|
| Total GHG generated from business activities: | 1.02 million t-CO2 | 0.77 million t-CO2 | 0.98 million t-CO2 |
| Reduction rate of GHG emissions from products and services associated with power supply (compared to FY2019) | 11.4% reduction | 70.4％ reduction | 13.6% reduction |
| Reductions in GHG emissions contributed by products and services associated with renewable energy supply (cumulative total from FY2021) | 28 million t-CO2 | 50 million t-CO2 | 43 million t-CO2 |
| Reductions in GHG emissions contributed by products and services associated with energy consumption (cumulative total from FY2021) | 41 million t-CO2 | 38 million t-CO2 | 57 million t-CO2 |
See below for details of achievements and initiatives.
Respond to the Circular Economy
| KPIs | FY2022 Targets | FY2022 Achievements | FY2023 Targets |
|---|---|---|---|
| Waste volume in business activities | 25,000 t | 30,000 t | 25,000 t |
| Amount of plastic resources recycled in products and services (cumulative total from FY2021) | 1,200 t | 1,552 t | 1,800 t |
| Amount of resources saved in products and services (cumulative total from FY2021) | 270,000 t | 200,000 t | 400,000 t |
| KPIs | FY2022 Targets | FY2022 Achievements | FY2023 Targets |
|---|---|---|---|
| Waste volume in business activities | 25,000 t | 30,000 t | 25,000 t |
| Amount of plastic resources recycled in products and services (cumulative total from FY2021) | 1,200 t | 1,552 t | 1,800 t |
| Amount of resources saved in products and services (cumulative total from FY2021) | 270,000 t | 200,000 t | 400,000 t |
See below for details of achievements and initiatives.
Consider Ecosystems
| KPIs | FY2022 Targets | FY2022 Achievements | FY2023 Targets |
|---|---|---|---|
| Amount of chemicals discharged per unit from business activities | 99% compared to FY2021 | 91% compared to FY2021 | 99% compared to FY2022 |
| Amount of water received per unit from business activities | 99% compared to FY2021 | 104% compared to FY2021 | 99% compared to FY2022 |
| KPIs | FY2022 Targets | FY2022 Achievements | FY2023 Targets |
|---|---|---|---|
| Amount of chemicals discharged per unit from business activities | 99% compared to FY2021 | 91% compared to FY2021 | 99% compared to FY2022 |
| Amount of water received per unit from business activities | 99% compared to FY2021 | 104% compared to FY2021 | 99% compared to FY2022 |
See below for details of achievements and initiatives.
For respect of human rights, to nurture people and technology, and to give back to society
Secure, Retain and Train Human Resources
| KPIs | FY2022 Targets | FY2022 Achievements | FY2023 Targets |
|---|---|---|---|
| Percentage of female employees in executive and in managerial positions (Percentage of female exempt employees)*1 | 6.0% | 5.8% | 6.5% |
| Set a target of 8% for FY2025 | |||
| Engagement score in the employee engagement survey*1 | 63%*１ (55 points*２) |
55 points*１ | 57 points*３ |
| Set a target of 59 points or above for FY2025*3 | |||
| Number of AI experts*4 | 2,000 | 2,100 | 2,200 |
| KPIs | FY2022 Targets | FY2022 Achievements | FY2023 Targets |
|---|---|---|---|
| Percentage of female employees in executive and in managerial positions (Percentage of female exempt employees)*1 | 6.0% | 5.8% | 6.5% |
| Set a target of 8% for FY2025 | |||
| Engagement score in the employee engagement survey*1 | 63%*１ (55 points*２) |
55 points*１ | 57 points*３ |
| Set a target of 59 points or above for FY2025*3 | |||
| Number of AI experts*4 | 2,000 | 2,100 | 2,200 |
- At Toshiba, Toshiba Energy Systems & Solutions Corporation, Toshiba Infrastructure Systems & Solutions Corporation, Toshiba Electronic Devices & Storage Corporation, and Toshiba Digital Solutions Corporation
- The engagement measurement method has been changed from FY2022. 63% of the conventional method is equivalent to 55 points in the new method.
- All companies participating in the TEAM survey (Reference: in FY2022, 87 Toshiba Group companies in Japan and overseas, or 64% of all employees, participated.)
- At Toshiba, Toshiba Energy Systems & Solutions Corporation, Toshiba Infrastructure Systems & Solutions Corporation, Toshiba Electronic Devices & Storage Corporation, Toshiba Digital Solutions Corporation, Toshiba Tec Corporation, Toshiba Elevator and Building Systems Corporation, and Toshiba Lighting & Technology Corporation
See below for details of achievements and initiatives.
Ensure Employee Health and Safety
| KPIs | FY2022 Targets | FY2022 Achievements | FY2023 Targets |
|---|---|---|---|
| Fatality due to work-related accidents | Zero (no accidents) | 1 | Zero (no accidents) |
| Severity rate of work-related accidents*1 | 0.01*2 or less | 0.005 | 0.01*2 or less |
| Ratio of employees with metabolic syndrome*1 | Same as the previous fiscal year or less | 34.6％ | Same as the previous fiscal year or less |
| 28.6% of less*3 by the end of FY2025; The targets for each year up to FY2025 should be at the same value as the previous fiscal year or less. | |||
| KPIs | FY2022 Targets | FY2022 Achievements | FY2023 Targets |
|---|---|---|---|
| Fatality due to work-related accidents | Zero (no accidents) | 1 | Zero (no accidents) |
| Severity rate of work-related accidents*1 | 0.01*2 or less | 0.005 | 0.01*2 or less |
| Ratio of employees with metabolic syndrome*1 | Same as the previous fiscal year or less | 34.6％ | Same as the previous fiscal year or less |
| 28.6% of less*3 by the end of FY2025; The targets for each year up to FY2025 should be at the same value as the previous fiscal year or less. | |||
- At Toshiba and Toshiba Group in Japan
- The target value is the average value (value published by Ministry of Health, Labour and Welfare) for the electrical appliance industry (companies of 1,000 employees or more) for 2020
- The 2019 national average (value published by Ministry of Health, Labour and Welfare) was decided as the target value at the OHS Management Conference held in the first half of FY2020
See below for details of achievements and initiatives.
Respect for Human Rights
| KPIs | FY2022 Targets | FY2022 Achievements | FY2023 Targets |
|---|---|---|---|
| Rate of human rights-related seminars and workshops for sustainability leaders held | 100%*1 | 100%*1 | 100%*2 |
| Participation rate in human rights education programs (e-learning) under the Standards of Conduct for Toshiba Group |
100% | 99% | 100% |
| Human rights due diligence initiatives (a) Implementation rate of human rights impact assessments in our own company’s businesses |
100%*1 | 100%*1 | ― |
| Human rights due diligence initiatives (b) Implementation rate of the survey on the actual conditions and the measures for correction, prevention, and mitigation |
― | ― | 100%*1 |
| KPIs | FY2022 Targets | FY2022 Achievements | FY2023 Targets |
|---|---|---|---|
| Rate of human rights-related seminars and workshops for sustainability leaders held | 100%*1 | 100%*1 | 100%*2 |
| Participation rate in human rights education programs (e-learning) under the Standards of Conduct for Toshiba Group |
100% | 99% | 100% |
| Human rights due diligence initiatives (a) Implementation rate of human rights impact assessments in our own company’s businesses |
100%*1 | 100%*1 | ― |
| Human rights due diligence initiatives (b) Implementation rate of the survey on the actual conditions and the measures for correction, prevention, and mitigation |
― | ― | 100%*1 |
- At Toshiba, key Group companies, Toshiba Elevator and Building Systems Corporation, Toshiba Lighting & Technology Corporation, and Toshiba Plant Systems & Services Corporation
- Implement at expanded targets
See below for details of achievements and initiatives.
Promote Sustainable Procurement
| KPIs | FY2022 Targets | FY2022 Achievements | FY2023 Targets |
|---|---|---|---|
| Obtaining consent for the Toshiba Group Procurement Policy from new suppliers | 100% | 100% | 100% |
| Number of companies where we conducted our Sustainable Procurement Survey*1 | 11,400 | 12,622 | 13,000 |
| Implementation rate of sustainable procurement training on Group procurement employees*2 | 38% | 41% | 100% |
| KPIs | FY2022 Targets | FY2022 Achievements | FY2023 Targets |
|---|---|---|---|
| Obtaining consent for the Toshiba Group Procurement Policy from new suppliers | 100% | 100% | 100% |
| Number of companies where we conducted our Sustainable Procurement Survey*1 | 11,400 | 12,622 | 13,000 |
| Implementation rate of sustainable procurement training on Group procurement employees*2 | 38% | 41% | 100% |
- The number of companies is a cumulative total. Implementation rate at key business partners is 100%.
- Excluding Toshiba Tec Corporation.
See below for details of achievements and initiatives.
Strengthen R&D to Stimulate Innovation
| KPIs | FY2022 Target | FY2022 Achievements | FY2023 Target |
|---|---|---|---|
| Ratio of R&D expenses to sales | 5.0% or higher | 4.7% | 5.0% or higher |
| KPIs | FY2022 Target | FY2022 Achievements | FY2023 Target |
|---|---|---|---|
| Ratio of R&D expenses to sales | 5.0% or higher | 4.7% | 5.0% or higher |
See below for details of achievements and initiatives.
For further strengthening thorough governance
Strengthen Governance
| KPIs | FY2022 Target | FY2022 Achievements | FY2023 Target |
|---|---|---|---|
| Percentage of outside directors on Toshiba’s Nomination Committee, Audit Committee, and Compensation Committee | 100% | 100% | 100% |
| KPIs | FY2022 Target | FY2022 Achievements | FY2023 Target |
|---|---|---|---|
| Percentage of outside directors on Toshiba’s Nomination Committee, Audit Committee, and Compensation Committee | 100% | 100% | 100% |
- Toshiba
See below for details of achievements and initiatives.
Strengthen Cyber Resilience
| KPIs | FY2022 Target | FY2022 Achievements | FY2023 Target |
|---|---|---|---|
| Maturity self-assessment regarding cyber security management | Higher than previous fiscal year | 3.4 | Higher than previous fiscal year (upon reaching 4, remain at 4 or higher) |
| KPIs | FY2022 Target | FY2022 Achievements | FY2023 Target |
|---|---|---|---|
| Maturity self-assessment regarding cyber security management | Higher than previous fiscal year | 3.4 | Higher than previous fiscal year (upon reaching 4, remain at 4 or higher) |
- At key Group companies, Toshiba Elevator and Building Systems Corporation, Toshiba Lighting & Technology Corporation, Toshiba Plant Systems & Services Corporation, and Toshiba Development & Engineering Corporation
See below for details of achievements and initiatives.
Process of Material Issues Identification
Before re-identifying material issues, Toshiba Group extracted and organized issues with reference to the SDGs, which are universal social issues, the Global Risks Report published by the World Economic Forum (WEF), and guidelines including the SASB Standards. We narrowed them down to those of priority, evaluating them by their closeness to the businesses specified in the Mid-term Business Plan that starts from FY2022 and their importance in terms of strengthening the foundations to drive businesses. External experts then reviewed the draft of the selected issues. In August 2021, the Sustainability Strategy Committee chaired by the President and CEO confirmed the selection. The re-identified material issues were also reported to the Executive session of the Board in September 2021. The Executive Session of the Board was established to revitalize the exchange of information among outside directors and to further improve their understanding of the Company's business, etc., and is comprised solely of outside directors. In principle, meetings are regularly convened once a quarter, and held on an extraordinary basis if requested by an outside director.
Process of Material Issues Identification
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