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OMRON Sustainability

Sustainability Management

Thoughts behind sustainability management and its framework

Basic Stance

Basic Stance

At OMRON, our aim is to contribute to the creation of a sustainable society and enhance corporate value, by using our OMRON Principles to solve social issues through our business activities.

In order to make this a reality, we feel it is very important to identify the material sustainability issues upon which OMRON should focus, incorporate these into medium to long-term strategies and then establish specific initiatives, and through our business activities, solve these problems.

Based upon this, we identified and set targets for 15 sustainability issues under the VG2.0 medium-term management plan which started in fiscal 2017, from the viewpoints of stakeholders and OMRON. In fiscal 2018, OMRON established a company-wide management structure aimed at achieving our year 2020 Sustainability Goals, and accelerated implementation of our initiatives. Each department is handling issues under their purview, and after discussions at the Sustainability Promotion Committee and Executive Council, is moving forward with implementation of measures. We are also using engagement with stakeholders in our evaluations, and working to further enhance our efforts.The Board of Directors receives these reports, and monitors and supervises initiatives to respond to sustainability issues.

【Company-wide management structure for promote sustainability goals】

Sustainability Management Overview

Process of Material Sustainability Issues Identification and Goal Setting

Sustainability issues are identified and related goals are set according to the process below. We disclose the progress towards the goals and conduct responsible engagement based upon our sustainability policy.


Identifying Material Issues

Identify material issues in order to solve social issues through our businesses from amongst social issues in factory automation, healthcare, and social solutions, which were set as priority domains in VG2.0.

From amongst sustainability issues, define materialities to be focused on by OMRON in the medium to long term in order to meet the expectations of stakeholders.

As preconditions, analyze global social issues and ESG trends from the viewpoints of various stakeholders including ESG evaluation agencies, to extensively identify economic, environmental, and social issues.


Setting Goals

To ensure more definite problem solving from the two axes above, set goals, and incorporate these into VG2.0.


Discussions and Approvals at the Management Level

The Executive Officer carries out discussions with participating executive officers with the CEO acting as a meeting chair, and then the board of directors meets to discuss and approve plans.


Progress Management and Information Disclosure

In order to achieve both the set quantitative and qualitative targets and KPIs, progress is measured throughout the company-wide management structure, and the results are disclosed.


Stakeholder Engagement and Feedback

Conduct responsible engagement with various stakeholders including investors, ESG evaluation agencies and academia about our material issues and the progress to the goals

Feedback the responses to Management and Businesses to amend our goals and reflect on our initiatives

Sustainability Management Overview

Sustainability issues that have come to light as a result of this decision process comprise of social issues to tackle in business domains identified in the VG2.0 medium-term management plan, and strengthening the business foundation to support the execution of VG2.0. These two axes are central to responding to the expectations of our stakeholders. Material issues include those responding to society’s needs such as increasing efficiency and intelligence in Factory Automation domain, human resource management and risk management. Our initiatives towards resolving these issues will also contribute to achieving Sustainable Development Goals.

Highlights of OMRON’s Sustainability Initiatives

1. Determine a sustainability policy, and set sustainability targets and KPIs integrated with the medium-term management plan. Reaching the sustainability goals will achieve the medium-term management plan, and will also contribute to achieving Sustainable Development Goals.

2. When setting sustainability issues, we have taken on board both solving social issues through our businesses and solving issues responding to stakeholder expectations as the two axes of themes, and expect the participation of all our employees.

3. The board of directors has established a sustainability policy, and declared that it will carry out monitoring and oversight functions regarding initiatives to respond to sustainability issues.

4. We adopted evaluations based upon sustainability indices from third-party organizations as one of the KPIs to use when determining medium- and long-term performance-linked compensation for top management.

5. Disclosing sustainability policies, targets, KPIs, and progress in a wide range of media including integrated reports, and enhancing dialogue with stakeholders, in order to realize progress in the sustainability initiatives.

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