Materialities (Major Social Issues)
Fuji Materialities
Even in a constantly changing macro environment where it is difficult to predict the future, we remain committed to continuously striving to realize our purpose of “enriching the lives of those in the world around us” and contributing to the creation of a sustainable society. To this end, in fiscal year 2024, we identified six social issues requiring our attention. After aligning these with our business fields, we defined them as material issues categorized into three key areas: "Manufacturing", "Lifestyle", and "Future".
Manufacturing
- Contributing to solving social issues through business as a manufacturing company
- Social issues addressed
-
- Improving industrial efficiency
- Stable quality
Lifestyle
- Expanding access to an enriched society
- Social issues addressed
-
- Labor shortages
- Creating a rewarding workplace
Future
- Contributing to a carbon neutral society
- Fostering innovative talent
- Social issues addressed
-
- Creating a rewarding workplace
- Decarbonization
- Resource recycling
Materiality Identification
Process
In identifying materiality, we identified 30 social issues that are currently receiving significant attention and are considered important, drawing on sustainability indicators from various assessment bodies such as the Sustainability Accounting Standards Board (SASB) and the Global Reporting Initiative (GRI), as well as the SDGs. We organized and evaluated these issues, prioritized them based on their importance to both stakeholders and Fuji, and created a draft matrix of social issues.
Based on the identified social issues and our business domains, we formulated our materialities and themes, which were reported to and approved by the Board of Directors.
Going forward, we will work to address these social issues by translating the established materialities and themes into more concrete initiatives.
Identify social issues
- Identified 30 issues based on various sustainability indicators, SDGs, and other sources
Prioritize social issues
- Identified key social issues and developed a draft social issues matrix
Discuss validity and comprehensiveness
- Discussed in the Sustainability Promotion Committee
Reassess social issue priorities
- Conducted a survey of stakeholders and reflected the results into the matrix
The Sustainability Promotion Committee discussed the proposed social issue matrix to assess its validity and comprehensiveness. We then conducted a survey of stakeholders (including employees, employees of Japanese subsidiaries, suppliers, and investors) to reevaluate the prioritization. By reflecting the survey results into the matrix, we identified the social issues with the highest importance.Questionnaire: Conducted in early February 2024Target group: Fuji employees, employees of Japanese subsidiaries, suppliers, and institutional investorsRespondents: 1,214
Determine Fuji's materialities:
Identified social issues x
Fuji's business domains
Identified social issues x
Fuji's business domains
- Reported to and was approved by the Board of Directors
Manufacturing
Improving industrial efficiency
Risk
- Obsolescence of existing business models due to advances in new technologies
- Declining profitability due to a drop in labor productivity
- Loss of market competitiveness if unable to meet customer automation needs
- Rising development costs due to intensifying competition in product development
- Risk of business disruptions and reduced productivity due to cyberattacks or system failures
Opportunity
- Expand into new markets by providing innovative solutions
- Drive dramatic improvements in productivity through DX and AI
- Create new businesses by restructuring the business portfolio
Theme
Automation and labor saving & Manufacturing with no waste
- SMT Pick and Place Machine (Mounter)
- Semiconductor manufacturing equipment (die bonders)
- Machine Tools
- Smart factory implementation
- Restructuring the business portfolio
Manufacturing
Stable quality
Risk
- Loss of customer trust due to product defects
- Increasing investments for improving quality
- Risk of quality inconsistencies and defects due to an inadequate training system
- Quality risks due to supply chain disruptions
Opportunity
- Improve reliability through the advancement of quality management systems
- Strengthen the quality assurance framework by implementing traceability and IoT
- Stable cost competitiveness and quality through optimized global sourcing
- Improve customer trust by achieving zero placement defects
Theme
Digital transformation and smartification & Global collaboration
- IT solutions
- Traceability
- Enhancing the service network
- Strengthening the training system
Lifestyle
Labor shortages
Risk
- Rising labor costs due to intensifying competition for talent
- Loss of customer trust from delays in delivery due to labor shortages
- Decline in productivity leading to declines in customer services
Opportunity
- Increased demand driven by growing needs for automation and labor-saving
- Support for flexible work arrangements, such as remote work and multiple role programs
- Securing a diverse workforce regardless of gender and nationality
Theme
Labor shortage & Last mile problem & Aging population
- Smart Locker Systems
- Medical care robots
- Increasing the proportion of female managers and international employees
Lifestyle
Future
Creating a rewarding workplace
Risk
- Rising turnover rates due to lowering employee engagement
- Damage to a company's reputation due to human rights violations
- Decline in development capabilities and sustainability due to an exodus of engineers
- Increased medical and employee benefit costs due to rising health risks among employees
- Risks to employees' physical and mental health and a decline in motivation due to deteriorating working conditions
Opportunity
- Improve employee motivation and organizational vitality by enhancing job satisfaction
- Foster innovation by advancing diversity and inclusion
- Attract and retain top talent by strengthening the corporate brand
- Enhance human talent through a comprehensive education system
Theme
Health and productivity & Educational support for the next generation (lifestyle)
- Physical and mental health consideration
- Community education
Theme
Diversity & Career paths and growth opportunities (future)
- Creating a supportive work environment and enriching systems
- Develop educational systems, evaluation systems, and training programs
Future
Decarbonization
Risk
- Increased costs associated with the introduction of a carbon tax and stricter emissions regulations
- Declining investor interest due to lower ESG ratings
- Loss of business opportunities due to delays in addressing Scope 3 emissions
- Risk of business disruptions due to extreme weather events
Opportunity
- Lower costs through renewable energy and energy-saving technologies
- Create new business opportunities through decarbonization-focused products and services
- Enhance brand value as an environmentally advanced company and gain investor recognition
Theme
Responding to climate change & Strengthening risk management and governance
- Reducing CO2 emissions across the entire value chain
- Strengthening sustainability initiatives
- Strengthening governance systems
Future
Resource recycling
Risk
- Rising raw material costs due to soaring resource prices
- Stricter waste disposal regulations and risk of penalties
- Risk of being excluded from environmentally conscious business partners
- Risk of product supply disruptions due to component shortages
- Increased waste disposal costs
- Supply chain disruptions and logistic bottlenecks caused by natural disasters and geopolitical risks
Opportunity
- Optimize costs by using recycled materials and reused components
- Secure competitive advantages through the development of resource-efficient, environmentally friendly products
- Expand business opportunities through environmentally friendly products that contribute to the recycling industry, such as waste management
Theme
Expanding products that contribute to the environment
- Supply Chain Management
- Atmospheric Pressure Plasma Units
- Electronics 3D printer
- Waste-Sorting Robots
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