■ Streamlining operations through DX
DX has become a high-priority challenge for us. We are responding by adopting various systems that can streamline our operations, and thereby strengthen the foundation of our business.
In 2022, the digital marketing project we launched in 2018 completed its rollout of the common digital platform at APEM and all other Group offices globally. As this enables us to provide each customer with personalized and optimal content, we are now working on creating processes that will lead to acquiring new business opportunities.
In addition, we are continuing with a project initiated in FY2023 to globally implement two integrated management systems—one that functions as a platform for enterprise resource planning (ERP), and another that supports supply chain planning (SCP). These systems will provide integrated management of various business processes and will be interlinked with the digital marketing platform, sales force automation, and other tools, resulting in greater operational efficiency.
Reinforcing our commitment to sustainability
To achieve our long-term vision, we must not only create economic value through our business activities, but also increase social value by reinforcing our commitment to sustainability. As part of our new long-term vision, we realigned our materiality and introduced new KPIs that align with our medium-term management plan. Moving forward, we will work toward resolving the societal challenges while monitoring our progress.
■ Addressing climate change
It goes without saying that we cannot successfully reach our vision for 2050 without addressing the global challenge of climate change. Our environmental strategy is a key pillar of our business strategy to achieve sustainable growth. Accordingly, we are seeking to achieve carbon neutrality by 2050, actively utilizing environmental initiatives as transition opportunities and implementing strategies that include developing eco-friendly products, engaging in environmental energy businesses, and pursuing other activities that contribute to reducing environmental impact.
■ Increasing investment in human capital
In order to achieve a sustainable society and improve corporate value, it is essential to strengthen human capital and revitalize our organization.
For this reason, we have added “business foundation” as a new materiality issue. We will promote engagement and work-style reform by aligning our initiatives with the medium-term management plan and sustainability KPIs.
In addition, we are systematically selecting and training candidates as our next-generation managers. This human resource development will provide a foundation for our Group’s further growth.
■ Strengthening governance
We have been taking action to strengthen our governance. From early on, we proactively appointed outside directors to our Board of Directors. Since 2016, outside directors have constituted more than half of the board’s membership. In 2022, we appointed outside directors to fill two new roles, supervising the important challenges of environmental measures and IT strategy. Female board members make up 30% of the board, contributing to its diversity.
Another critical challenge that we have been addressing is the cultivation of the next-generation of executive leaders. In 2021 we established a voluntary Nominating Committee, comprised mostly of outside directors, to serve as an advisory body for the Board of Directors. This provides us with a system for objective and independent decision-making concerning the nomination of director candidates and the planning of training for next-generation executive candidates. The Directors also hold lectures and interviews as part of the next-generation training curriculum.
As another way to further strengthen our governance, we also established a voluntary Remuneration Committee in October 2022, comprised mostly of outside directors, to ensure fairness, transparency, and objectivity of our director remuneration decision-making process.
We have designed our remuneration system to reflect nonfinancial KPIs in addition to financial ones, to reinforce our commitment to sustainability. By pursuing the many different actions I have illustrated here, the IDEC Group will strive to realize the sustainable growth for its entire global organization. Going forward, everyone in our Group will continue working as one, to fulfill our Purpose of achieving safety, ANSHIN, and well-being for people around the world.
Chairman and Chief Executive Officer
Toshi K. Funaki