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. By addressing these material issues, we will push forward with the strengthening of ESG in order to achieve our vision for 2030. In the area of E (environment), we are working to achieve carbon neutrality and a circular economy while promoting activities that give consideration to ecosystems, such as responding to water risks and conserving biodiversity. In the area of S (social), we are working to realize a culture of respect for human rights as a prerequisite for nurturing people and technologies that create abundant value and give back to society. In the area of G (governance), we are working to strengthen governance and improve cyber resilience in order to achieve honest management.
| 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. |
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| 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. |
|
KPIs
The Sustainability Strategy Committee decides on KPIs in line with material issues and we work on them.For FY2024, we revised some of the KPIs and introduced qualitative targets.
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 | FY2023 | FY2024 | |
|---|---|---|---|---|
| Achievements | Targets | Achievements | Targets | |
| Total GHG emissions from business and production sites*1 | 0.76 million t-CO2 | 0.98 million t-CO2 | 0.54 million t-CO2 | ー |
| Reduction rate of GHG emissions (Scopes 1+2) (compared to FY2019) |
ー | ー | ー | 32% reduction |
| Reduction rate of GHG emissions (Scope 3) (compared to FY2019) |
ー | ー | ー | 59% reduction |
| Reduction rate of GHG emissions from products and services associated with power supply (compared to FY2019)*2 | 70.4% reduction | 13.6% reduction | 62.5% reduction | ー |
| Reductions in GHG emissions contributed by products and services associated with renewable energy supply (cumulative total from FY2021)*3 |
51 million t-CO2 | 43 million t-CO2 | 60 million t-CO2 | ー |
| Reductions in GHG emissions contributed by products and services associated with energy consumption (cumulative total from FY2021)*4 | 37 million t-CO2 | 57 million t-CO2 | 49 million t-CO2 | ー |
| Reductions in GHG emissions contributed by products and services associated with energy consumption (cumulative total from FY2019) |
ー | ー | ー | 108 million t-CO2 |
| KPIs | FY2022 | FY2023 | FY2024 | |
|---|---|---|---|---|
| Achievements | Targets | Achievements | Targets | |
| Total GHG emissions from business and production sites*1 | 0.76 million t-CO2 | 0.98 million t-CO2 | 0.54 million t-CO2 | ー |
| Reduction rate of GHG emissions (Scopes 1+2) (compared to FY2019) |
ー | ー | ー | 32% reduction |
| Reduction rate of GHG emissions (Scope 3) (compared to FY2019) |
ー | ー | ー | 59% reduction |
| Reduction rate of GHG emissions from products and services associated with power supply (compared to FY2019)*2 | 70.4% reduction | 13.6% reduction | 62.5% reduction | ー |
| Reductions in GHG emissions contributed by products and services associated with renewable energy supply (cumulative total from FY2021)*3 |
51 million t-CO2 | 43 million t-CO2 | 60 million t-CO2 | ー |
| Reductions in GHG emissions contributed by products and services associated with energy consumption (cumulative total from FY2021)*4 | 37 million t-CO2 | 57 million t-CO2 | 49 million t-CO2 | ー |
| Reductions in GHG emissions contributed by products and services associated with energy consumption (cumulative total from FY2019) |
ー | ー | ー | 108 million t-CO2 |
- CO2 emissions from electricity are calculated using emission coefficients provided by power companies.
- The reduction rate of GHG emissions from products and services associated with power supply (such as thermal power generation; compared to FY2019). The calculation method is as follows:
GHG emissions from power generation for FY2021 onward due to newly installed or upgraded facilities are calculated to derive the reduction rate versus FY2019 emissions. The arithmetic mean for the results during the period of the Seventh Environmental Action Plan is used. - Contribution to GHG emissions reduction by products and services associated with power supply (such as water, geothermal, and solar power generation). The calculation method is as follows:
Obtain the difference between average GHG emissions per unit of all thermal power generation (coal, gas, and oil) and GHG emissions per unit of renewable energy generation and multiply it by output, operation rate, facility utilization rate, expected service life, etc. Aggregate the cumulative total volume of contribution to GHG emissions reduction due to power generation in FY2021 onward attributable to newly installed or upgraded facilities. - Contribution to GHG emissions reduction by products and services associated with power consumption (such as social infrastructure products). The calculation method is as follows:
Obtain the difference (for one year) between the total GHG emissions of assumed substitute products and the total GHG emissions of shipped products and multiply it by the expected service life.
See below for details of achievements and initiatives.
Respond to the Circular Economy
| KPIs | FY2022 | FY2023 | FY2024 | |
|---|---|---|---|---|
| Achievements | Targets | Achievements | Targets | |
| Volume of waste from business and production sites*1 | 0.26 million t | 0.25 million t | 0.23 million t | ー |
| Reduction of total waste volume from business and production sites (per unit improvement)*2 | ー | ー | ー | 2% reduction compared to FY2022 |
| Amount of plastic resources recycled in products and services (cumulative total from FY2021)*3 | 1,552 t | 1,800 t | 2,237 t | ー |
| Amount of resources saved in products and services (cumulative total from FY2021)*4 | 0.2 million t | 0.4 million t | 0.29 million t | ー |
| KPIs | FY2022 | FY2023 | FY2024 | |
|---|---|---|---|---|
| Achievements | Targets | Achievements | Targets | |
| Volume of waste from business and production sites*1 | 0.26 million t | 0.25 million t | 0.23 million t | ー |
| Reduction of total waste volume from business and production sites (per unit improvement)*2 | ー | ー | ー | 2% reduction compared to FY2022 |
| Amount of plastic resources recycled in products and services (cumulative total from FY2021)*3 | 1,552 t | 1,800 t | 2,237 t | ー |
| Amount of resources saved in products and services (cumulative total from FY2021)*4 | 0.2 million t | 0.4 million t | 0.29 million t | ー |
- Obtained by deducting the volume of objects with value from the total volume of waste generated (excluding sites engaged in waste treatment and power generation).
- Basic-unit goals: Activities are assessed using indicators such as nominal output, the number of products manufactured, the number of persons, and the total floor area.
- Cumulative total volume of recycled plastics and bioplastics used over the three-year period.
- Cumulative total volume of eight resources conserved due to lighter product weights and longer product service lives over the three-year period. The calculation method is as follows:
[Total volume of input materials for assumed substitute products – Total volume of input materials for shipped products]
See below for details of achievements and initiatives.
Consider Ecosystems
| KPIs | FY2022 | FY2023 | FY2024 | |
|---|---|---|---|---|
| Achievements | Targets | Achievements | Targets | |
| Reduction of the total amount of chemical substances emitted from business and production sites (per unit improvement)*1 | Compared to FY2021 2.6% improvement |
Compared to FY2021 1% improvement |
Compared to FY2021 1.1% improvement |
ー |
| Reduction of the amount of water received at business and production sites (per unit improvement)*1 | Compared to FY2021 Deterioration by 3.9% |
Compared to FY2022 1% improvement |
Compared to FY2022 Deterioration by 16% |
Compared to FY2022 2% improvement |
| Expanded contributions to the “7 GBF Targets” of focus in biodiversity conservation activities*2 | ー | ー | ー | Set by location |
| KPIs | FY2022 | FY2023 | FY2024 | |
|---|---|---|---|---|
| Achievements | Targets | Achievements | Targets | |
| Reduction of the total amount of chemical substances emitted from business and production sites (per unit improvement)*1 | Compared to FY2021 2.6% improvement |
Compared to FY2021 1% improvement |
Compared to FY2021 1.1% improvement |
ー |
| Reduction of the amount of water received at business and production sites (per unit improvement)*1 | Compared to FY2021 Deterioration by 3.9% |
Compared to FY2022 1% improvement |
Compared to FY2022 Deterioration by 16% |
Compared to FY2022 2% improvement |
| Expanded contributions to the “7 GBF Targets” of focus in biodiversity conservation activities*2 | ー | ー | ー | Set by location |
- Basic-unit goals: Activities are assessed using indicators such as nominal output, the number of products manufactured, the number of persons, and the total floor area.
- GBF (Global Biodiversity Framework) refers to the “Kunming-Montreal Global Biodiversity Framework” formulated in the 15th Conference of the Parties to the Convention on Biological Diversity (COP15) held in December 2022.
This is a set of global goals for biodiversity conservation that consists of a 2050 vision, a 2030 mission, 2050 goals, and 2030 targets (consisting of 23 activity targets and other elements).
The seven targets are seven targets among the “2030 targets” for achieving “Nature Positive”–specifically, “Target 3: 30 by 30,” “Target 4: Species and gene conservation,” “Target 6: Invasive species control,” “Target 7: Pollution prevention/reduction,” “Target 8: Climate change measures,” “Target 11: Utilization of nature’s regulatory functions,” and “Target 12: Securing green and water-friendly spaces”–and Toshiba Group aims to contribute to achieving these at its approximately 60 sites in Japan and overseas.
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 | FY2023 | FY2024 | |
|---|---|---|---|---|
| Achievements | Targets | Achievements | Targets | |
| Percentage of female employees in executive and in managerial positions (Percentage of female exempt employees)*1 | 5.8% | 6.5% | 6.2% | 7.2% |
| Set a target of 8% for FY2025 | ||||
| Engagement score | 57 points*1 | 57 points*2 | 57 points*2 | 58 points |
| Set a target of 59 points or above for FY2025*2 | ||||
| Number of AI experts*3 | 2,100 | 2,200 | 2,300 | ー |
| Percentage of employees using AI*4 | ー | ー | ー | 30% |
| KPIs | FY2022 | FY2023 | FY2024 | |
|---|---|---|---|---|
| Achievements | Targets | Achievements | Targets | |
| Percentage of female employees in executive and in managerial positions (Percentage of female exempt employees)*1 | 5.8% | 6.5% | 6.2% | 7.2% |
| Set a target of 8% for FY2025 | ||||
| Engagement score | 57 points*1 | 57 points*2 | 57 points*2 | 58 points |
| Set a target of 59 points or above for FY2025*2 | ||||
| Number of AI experts*3 | 2,100 | 2,200 | 2,300 | ー |
| Percentage of employees using AI*4 | ー | ー | ー | 30% |
- 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
- Employees throughout the entire Toshiba Group in Japan who use PCs in their daily work
See below for details of achievements and initiatives.
Ensure Employee Health and Safety
| KPIs | FY2022 | FY2023 | FY2024 | |
|---|---|---|---|---|
| Achievements | Targets | Achievements | Targets | |
| Fatality due to work-related accidents | 1 | Zero (no accidents) | 3 | Zero (no accidents) |
| Severity rate of work-related accidents*1 | 0.005 | 0.010*2 or less |
0.103 | 0.010*2 or less |
| Ratio of employees with metabolic syndrome*1 | 34.6% | Same as the previous fiscal year or less | 34.6％ | Same as the previous fiscal year or less |
| 28.6% or 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 | FY2023 | FY2024 | |
|---|---|---|---|---|
| Achievements | Targets | Achievements | Targets | |
| Fatality due to work-related accidents | 1 | Zero (no accidents) | 3 | Zero (no accidents) |
| Severity rate of work-related accidents*1 | 0.005 | 0.010*2 or less |
0.103 | 0.010*2 or less |
| Ratio of employees with metabolic syndrome*1 | 34.6% | Same as the previous fiscal year or less | 34.6％ | Same as the previous fiscal year or less |
| 28.6% or 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 | FY2023 | FY2024 | |
|---|---|---|---|---|
| Achievements | Targets | Achievements | Targets | |
| Rate of human rights-related seminars and workshops for sustainability leaders held | 100%*1 | 100%*1+*2 | 100% | ー |
| Participation rate in human rights education programs (e-learning) under the Standards of Conduct for Toshiba Group |
99% | 100% | 99.6% | 100% |
| Human rights due diligence initiatives (a) Implementation rate of human rights impact assessments in our own company’s businesses |
100%*1 | ー | ー | ー |
| Human rights due diligence initiatives (b) Implementation rate of the survey on the actual conditions and the measures for correction, prevention, and mitigation |
ー | 100%*2 | N/A*3 | ー |
| Human rights due diligence initiatives Percentage of companies monitoring the actual status using the Risk Assessment Program (RAP) for Group companies*4 |
ー | ー | ー | 100% |
| KPIs | FY2022 | FY2023 | FY2024 | |
|---|---|---|---|---|
| Achievements | Targets | Achievements | Targets | |
| Rate of human rights-related seminars and workshops for sustainability leaders held | 100%*1 | 100%*1+*2 | 100% | ー |
| Participation rate in human rights education programs (e-learning) under the Standards of Conduct for Toshiba Group |
99% | 100% | 99.6% | 100% |
| Human rights due diligence initiatives (a) Implementation rate of human rights impact assessments in our own company’s businesses |
100%*1 | ー | ー | ー |
| Human rights due diligence initiatives (b) Implementation rate of the survey on the actual conditions and the measures for correction, prevention, and mitigation |
ー | 100%*2 | N/A*3 | ー |
| Human rights due diligence initiatives Percentage of companies monitoring the actual status using the Risk Assessment Program (RAP) for Group companies*4 |
ー | ー | ー | 100% |
- At Toshiba, key Group companies, Toshiba Elevator and Building Systems Corporation, Toshiba Lighting & Technology Corporation, and Toshiba Plant Systems & Services Corporation
- Group companies identified as high risk in human rights impact assessments
- The implementation rate is difficult to quantify, so it is N/A (for the actual initiatives, see the “Respect for Human Rights” page).
- Companies covered by RAP (80% of Toshiba Group companies)
See below for details of achievements and initiatives.
Promote Sustainable Procurement
| KPIs | FY2022 | FY2023 | FY2024 | |
|---|---|---|---|---|
| Achievements | Targets | Achievements | Targets | |
| Obtaining consent for the Toshiba Group Procurement Policy from new suppliers | 100% | 100% | 100% | 100% |
| Number of companies where we conducted our Sustainable Procurement Survey*1 | 12,622 | 13,000 | 13,014 | 13,000 |
| Implementation rate of sustainable procurement training on Group procurement employees*2 | 41% | 100% | 100% | 100% |
| KPIs | FY2022 | FY2023 | FY2024 | |
|---|---|---|---|---|
| Achievements | Targets | Achievements | Targets | |
| Obtaining consent for the Toshiba Group Procurement Policy from new suppliers | 100% | 100% | 100% | 100% |
| Number of companies where we conducted our Sustainable Procurement Survey*1 | 12,622 | 13,000 | 13,014 | 13,000 |
| Implementation rate of sustainable procurement training on Group procurement employees*2 | 41% | 100% | 100% | 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
See below for details of achievements and initiatives.
For further strengthening thorough governance
Strengthen Governance
| KPIs | FY2022 | FY2023 | FY2024 | |
|---|---|---|---|---|
| Achievements | Targets | Achievements | Targets | |
| Percentage of outside directors on Toshiba’s Nomination Committee, Audit Committee, and Compensation Committee* | 100% | 100% | 100% | ー |
| Establishment and strengthening of governance systems under the new management structure | ー | ー | ー | (Qualitative) |
| Compliance score in the employee engagement survey | （67 points） | （67 points） | ー | 68 points |
| KPIs | FY2022 | FY2023 | FY2024 | |
|---|---|---|---|---|
| Achievements | Targets | Achievements | Targets | |
| Percentage of outside directors on Toshiba’s Nomination Committee, Audit Committee, and Compensation Committee* | 100% | 100% | 100% | ー |
| Establishment and strengthening of governance systems under the new management structure | ー | ー | ー | (Qualitative) |
| Compliance score in the employee engagement survey | （67 points） | （67 points） | ー | 68 points |
- Toshiba. Until December 2023 (The committees were abolished due to a change in the system.)
Strengthen Cyber Resilience
| KPIs | FY2022 | FY2023 | FY2024 | |
|---|---|---|---|---|
| Achievements | Targets | Achievements | Targets | |
| Self-assessment of cyber security management maturity* | 3.4 | Higher than previous fiscal year (upon reaching 4, remain at 4 or higher) | 3.58 | Higher than previous fiscal year (upon reaching 4, remain at 4 or higher) |
| KPIs | FY2022 | FY2023 | FY2024 | |
|---|---|---|---|---|
| Achievements | Targets | Achievements | Targets | |
| Self-assessment of cyber security management maturity* | 3.4 | Higher than previous fiscal year (upon reaching 4, remain at 4 or higher) | 3.58 | 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
