Sustainability Targets and Results

OMRON Sustainability

Sustainability Targets and Results

Sustainability issues identified through decision process, FY2020 goals, and OMRON's initiatives

Sustainability Issues and Goals

Fiscal 2022 is the first year of our latest Long-Term Vision SF2030 and medium-term management plan. We will disclose results related to our new targets in fiscal 2023. Here, we have published our sustainability targets and results for FY2021.

FY2021 Sustainability Targets and Results

In fiscal 2017, OMRON set key sustainable issues based on it sustainability policy, which are made up of two main areas. The first are social issues OMRON should solve through the focus business domains defined in its VG2.0 medium-term management plan. The second are issues that should be addressed by building a strong platform to carry our VG2.0 to meet the expectations of stakeholders. We viewed FY2021 as a period of change, setting single-year targets and pursuing various initiatives in line with the sustainability materialities as described under VG2.0.

Issues to solve through business
Response to social needs Factory Automation: Increasing sophistication of products, development of high-mix, low-volume production, labor shortages, rising labor costs Healthcare: Increase in brain and cardiovascular diseases, increase in respiratory diseases Social Solutions: Global warming stemming from CO₂ emissions
Issues to respond to stakeholder expectations
Human Resource Management Talent Attraction and Development Diversity and Inclusion Wellness Management Occupational Health and Safety Respect for Human Rights and Labor Practices	Manufacturing Product Safety and Quality Reduction of Greenhouse Gas Emissions Appropriate Management and Reduction of Hazardous Substances Supply Chain Management	Risk Management Fair Business Practices Privacy and Data Security

Goals to Solve through Business

The OMRON Group set targets for fiscal 2020 related to social issues to solved through our focus business domains. We set and endeavored to achieve single-year targets for FY2021.

Factory Automation

Social Issues	Increasing sophistication and functionality of products in line with changes in industry as represented by CASE^*1 and 5G, etc. Progress in high-mix low-volume production in response to the diversification of consumer needs Accelerating trends toward local production for local consumption in response to trade frictions Aging demographics and shortage of skilled workers, particularly in developed countries; and soaring labor costs in emerging economies
FY2021 Targets	Create applications that embody innovative-Automation^*2, establish control technologies that make these applications possible, and create new products based on these applications
FY2021 Progress	Expanded software products that accelerate digital transformation at manufacturing sites and provide remote engineering that integrates real and virtual applications Contributed to significant efficiency gains at manufacturing sites by achieving harmony between humans and machines through expanded robot-related areas to achieve safety assurance and productivity Applications created increased by 77 in FY2021, reaching 247 on a cumulative basis
Social Value Created	Contribute to economic development by improving social productivity

*1CASE: General term for connected, autonomous, shared, electric technologies
*2innovative-Automation: The unique OMRON concept to bring innovations to production floors. This comprises three concepts: (1) Evolution in control (integrated); (2) Intelligence developed through ICT (intelligent); and (3) New harmonization between humans and machines (interactive).

Healthcare

Social Issues	Increased incidence of brain and cardiovascular diseases attributable to high blood pressure Increased worldwide prevalence of asthma and other respiratory diseases
FY2021 Targets	Created a remote hypertension monitoring service and proposed a new way of hypertension treatment to society Accelerated the wider use of home blood pressure measurement globally and achieved a cumulative sales volume of 300 million blood pressure monitor units Expanded related products to create remote care and other respiratory disease service businesses
FY2021 Progress	Focused on strengthening the content of hypertension remote monitoring services in North America, Europe, and Asia-Pacific, increasing the number of registered patients and hospitals Achieved 300 million units in cumulative sales of blood pressure monitors. Continued to communicate efforts to achieve zero events through online and other channels Completed validation tests for respiratory remote monitoring business model based on wheeze sensors
Social Value Created	Contribute to healthy lives by extending healthy life expectancies and reducing medical expenses (initiatives to expand blood pressure monitoring at home and achieve vision of zero heart attacks and strokes; early detection and treatment of asthma via nebulizers and wheeze sensors)

Social Solutions

Social Issues	Global warming from CO₂ emissions
FY2021 Targets	Created an electric power infrastructure of distributed electricity sources to spread renewable energy and provide stable operations Cumulative shipped capacity of solar power systems: 10.7GW Cumulative shipped capacity of storage battery systems: 900ＭWh
FY2021 Progress	Expanded our lineup of storage battery systems that, in combination with solar power systems, provide efficient captive consumption and emergency power supply in the event of a disaster Solar power systems: 10.8GW Storage battery systems: 900MWh
Social Value Created	Contribute to a safe, secure, comfortable, and clean society for all Contribute to build a sustainable society by prevailing renewable energy

Goals to Respond to Stakeholder Expectations

Human Resource Management

Employees are the most critical element to promote OMRON Principles Management. As employees supporting the growth of OMRON, we enjoy our work and commit to building an attractive company that accepts the challenge of creating social needs that solve social issues.
We create and evolve conditions where the company and its employees can grow together.

Talent Attraction and Development

OMRON's Initiatives	<Human Resources Strategy> Expand the circle of empathy and resonance by practicing the OMRON Principles Securing and training of next-generation leaders (candidates for important positions) Providing of a workplace environment that can attract and empower the diverse talent necessary for business growth
FY2021 Targets	Continued evolution of TOGA* towards meeting OMRON Principles Ratio of non-Japanese in key managerial positions overseas: 75% Pursue resolution actions to solve issues based on engagement surveys
FY2021 Progress	The 9th (FY2020) TOGA Global Meet was a hybrid of in-person and digital attendance, reaching record levels of viewership (including on-demand viewing) Ratio of non-Japanese in key managerial positions overseas: 80% Developed and implemented over 230 issue resolution actions globally
Case Studies	Established collaborative projects with external parties, expanding the circle of support and resonance both inside and outside the company Evaluated and replaced incumbents in key positions through regular talent reviews; selected and trained potential successors Improved organizational performance by improving operational efficiencies via IT infrastructure development, system revisions, simplification of rules, etc.
Social Value Created	OMRON is creating leaders who can drive innovation and both acquire and train diversely talented employees to solve social issues through our businesses.

*TOGA: an abbreviation for The OMRON Global Awards, a participation-type approach for employees worldwide to foster a challenge-oriented corporate culture that uses our business activities to put into practice the OMRON Principles. Through these activities, each and every employee seeks to voluntarily take on the challenges of solving social issues, and of creating value.

Diversity and Inclusion

OMRON's Initiatives	<Diversity and Inclusion> Promoting career advancement for women Promoting career advancement for the disabled
FY2021 Targets	Ratio of women in managerial roles: 8% (OMRON Group in Japan) Ratio of employees with disabilities: Increase number of such employees to above the legally-mandated ratio (OMRON Group in Japan)
FY2021 Progress	Ratio of women in managerial roles: Achieved 8%^1 (OMRON Group in Japan) Ratio of employees with disabilities (OMRON Group in Japan): 3.1%^2 (legally mandated ratio: 2.3%)
Case Studies	Promoting career advancement for women Provided leadership training, career counseling, and networking opportunities for female employees Trained managers in employee development skills Female management mid-career hires Enhanced systems that enable flexible work styles Employment of employees with disabilities Supported the activities of Group companies, and confirming that reasonable consideration taken Established a consultation system and support for activities using professional counselors Expanded duties aimed at increasing employment opportunities Implemented heart barrier-free — an awareness amongst everyone of accessibility issues
Social Value Created	Achieving a workplace in which diverse human resources can play an active role, regardless of the presence of limitations such as gender or disabilities.

*1As of April 2022
*2As of June 2021

Wellness Management

OMRON's Initiatives	<Wellness management> Issuing of employee health management declaration Implementation of employee education Implementation of initiatives towards ameliorating factors that inhibit good health
FY2021 Targets	Improve health management recognition and achieve three of the Boost5^*1 targets (Japan)
FY2021 Progress	Health management recognition rate: 89.2% (+4.4P year on year) Achievement of three of the Boost 5 targets: 49.4% (+4.1P year on year)
Case Studies	Japan In order to support employees to increase the number of Boost5 targets achieved, sponsored health events that encouraged behavioral change and created environments to effortlessly take health actions During FY2021, focused on mental health as a Boost5 target, setting a goal to increase self-care practice rates. We promoted an awareness of initiatives through online events, e-learning for all employees, distribution of health information, and communications via internal social channels, portals, and email newsletters Overseas Overseas regions rolled out their unique Boost5 programs and targets (wellness education programs, walking campaigns, introduction of healthy menus in cafeterias, anti-smoking campaigns, etc.)
Social Value Created	Improve human creativity^*2 by maintaining and improving the health of every employee and by providing opportunities for employees to exercise their creativity

*1Boost5: Five key areas (exercise, sleep, mental health, food, and stop smoking) selected as factors related directly to the ability to concentrate at work and to lead a fulfilling life; indicators have been established for each of these key areas
*2Human creativity: Value added per unit of personnel expense (manufacturing + SG&A + development)

Occupational Health and Safety

OMRON's Initiatives	<Health and Safety related Management System and Improvement Activities> Promote the acquisition of international health and safety standards at major production centers Ensure personnel for promotion, and carry out education
FY2021 Targets	Number of production centers certified to OSH international standards: Maintain achievement at sites representing 80% of production volume Continue assignments of promotion personnel: All covered sites
FY2021 Progress	Number of manufacturing sites certified to OSH international standards: Maintained achievement at sites representing 87% of production volume Maintained assignments of occupational health and safety managers
Case Studies	Completed the final ISO45001 audit of the Indonesian factory and obtained certification in March 2022 Visualized the deployment of 230 dedicated personnel as part of the global OSH network system; confirmed the status of legal compliance at global production centers
Social Value Created	While ensuring compliance with laws and regulations concerning workplace occupational health and safety, we are creating a work environment to ensure the wellbeing of all employees at the OMRON Group and to maximize their abilities, by striving to create workplaces at which employees can work safely and healthfully — both physically and mentally.

Respect for Human Rights and Labor Practices

OMRON's Initiatives	<Human Rights related Management System and Improvement Activities> Establishment of management system (human rights policy and organizational structure) Human rights risk analysis and corrective actions at production sites
FY2021 Targets	Perform human rights risk analysis for production centers; implement remediation measures Extend human rights risk management processes to employees of on-site contractors and temporary staffing companies
FY2021 Progress	Conducted risk analysis and remediation at 19 global production centers Extended human rights risk management processes to employees of domestic outsourcing partners; revised outsourcing contracts to include code of conduct compliance clauses overseas
Case Studies	Conducted risk assessments at 19 production centers using the RBA SAQ (Self-Assessment Questionnaire); confirmed that there were no significant risks present Selected 31 outsourcing companies and 65 temporary staffing companies in Japan for human rights risk assessments; we confirmed no significant risks present Established the OMRON Human Rights Policy (March 2022)
Social Value Created	Achieving a better work environment in which the human rights of all people working in the OMRON Group are respected.

Manufacturing

By putting the OMRON Principles into practice in a way that complies with its Manufacturing Policy*, OMRON will create social value and strives to contribute to sustainable manufacturing. In conformance with OMRON's Purchasing Policy, OMRON also seeks to achieve sustainable procurement together with suppliers through purchasing practices that conform to our guidelines.

*OMRON's manufacturing policy comprises three principles-Quality First, 3F (Front-loading, Flowing & Flexible), and H&E (Human-oriented & Eco-manufacturing). The "3F" policy refers to the creation of the value sought by customers in the upstream of the development process. This value is built into products and services so that we can deliver what customers require in the needed quantities and at the needed times. In this way, the policy addresses the creation and delivery of customer value. The H&E policy aims to achieve the best match between people and machines and promote humanity-focused, environmentally friendly manufacturing to use limited resources.

Product Safety and Quality

OMRON's Initiatives	<Advancing Group-Wide Product Quality Management> Conducting group-wide product quality management reform Reducing product safety risk
FY2021 Goals	Ratio of newly developed products undergoing safety assessment: 100% Improve product safety assessments
FY2021 Progress	Product safety assessments for newly developed products: 100% Completed 84 applications for newly developed products and updated product safety assessment categories conform with the intended use of the products.
Case Studies	Hazard analysis of products with potentially high product safety risks; pursued essential product safety measures Global support for PSE^1 training, including development of training manuals Implemented of PLP^2 audits
Social Value Created	Incorporating quality, safety, environmental, and human rights into products and services, to bring about sustainable manufacturing.

*1PSE: Product Safety, Electrical Appliances & Materials
*2PLP: Product Liability Prevention

Supply Chain Management

OMRON's Initiatives	<Engagement with Partners> Maintain and improve sustainability levels through sustainability self-assessment^1 for major suppliers in accordance with the RBA^2 Collaborate with suppliers for resource recycling
FY2021 Goals	Achieve a sustainability check score of 85 or higher (RBA Code of Conduct V7.0) for 50 major suppliers of commercial products Reduce disposal of reusable plastic molding materials by 15% (compared to FY2019)
FY2021 Progress	Achieved 85 or more points for the Sustainability Self-Checks at all major suppliers of commercial products (low risk) Plastic molding material waste: 16.7% reduction
Case Studies	Revised Supplier Code of Conduct based on the latest version of RBA; sent the Supplier Code of Conduct to approximately 2,000 suppliers Conducted dialogues with major suppliers of commercial products regarding changes in RBA questions; determined measures to reduce risk Conducted self-assessments and site visits to 15 suppliers of processed products to make improvements Implemented hot runner^*3 system at the time of new start-up or renewal of plastic molding dies with 7 companies; introduced/implemented process for reusing waste materials generated during molding with 8 companies
Social Value Created	By solving social issues in the supply chain in cooperation with suppliers, achieving a society capable of sustainable production and consumption.

*1Sustainability self-assessment: Supplier self-evaluation of their own initiatives into labor, safety, and health, using a questionnaire.85 points or above is considered low risk, whereas 65 points or less is considered high risk. Compliant with RBA (Responsible Business Alliance)
*2RBA: abbreviation of Responsible Business Alliance. Global CSR alliance centered around the electronics industry.
*3System for supplying resin in a molten state from the nozzle of a molding machine to the product mold

Reduction of Greenhouse Gas Emissions

OMRON's Initiatives	Reduction in greenhouse gas emissions by improving the efficiency of power usage, and by introducing renewable energy Provision of products and services that contribute to the spread of clean energy
FY2021 Goals	Reduce total GHG emissions^* by 47% (vs. fiscal 2016; 1.5°C scenario) Environmental contribution exceeds CO₂ emissions from production centers
FY2021 Progress	Reduce total GHG emissions^* by 50% (vs. fiscal 2016) Environmental contribution: 881kt-CO₂ > Production location CO₂ emissions: 109(kt-CO₂)
Case Studies	<Examples of Greenhouse Gas Reduction> Solar power generation system installations: 2 locations in Japan, 2 overseas Potential assessment by professionals to plan mid-term measures for energy conservation and use of renewable energy at production factory in Shenzhen (China) Established the OMRON Environmental Policy (March 2022)
Social Value Created	Making sustainable manufacturing a reality by reducing greenhouse gas emissions, and bringing about a decarbonized society.

*Direct greenhouse gas emissions by the company itself and indirect emissions from the use of electricity, heat, and steam supplied by other companies

Appropriate Management and Reduction of Hazardous Substances

OMRON's Initiatives	Build a framework for chemical substance management s used in production processes Stop use or reduce the use of harmful chemical substances, responding to high social demand
FY2021 Goals	Reduce mercury through prevalent usage of digital thermometers and blood pressure monitors: 65 tons/year Determination of volatile organic compound (VOC) usage
FY2021 Progress	Mercury reduction: 66 tons/year Completed identification of volatile organic compounds (VOCs) volume and set medium-term reduction targets
Case Studies	Exhibits at trade shows and academic societies for ongoing educational activities for doctors Established target substances and reduction plans; gained an understanding of legal and regulatory trends
Social Value Created	Realization of a decarbonized society that is in harmony with nature, by reducing negative impacts of chemical substances on people, organisms, and the environment

Risk Management

OMRON promotes risk management that integrates all risk-related activities at the global level, in order to ensure business continuity and the achievement of goals, while also fulfilling its social responsibilities. By disseminating the polices and rules established in-house, OMRON seeks to build long-term relationships of trust with stakeholders while helping employees engage in work and business with pride and a sense of security.

Fair Business Practices

OMRON's Initiatives	<Enhanced compliance program> Periodic reviews of OMRON Group Rules for Ethical Conduct on a regular basis in order to reflect laws and regulations, and social demand of countries around the world Offer continuous, periodic and necessary training and education in order to maintain awareness of compliance and instill stipulated in rules Assess issues using the whistle-blower system and promptly take corrective actions
FY2021 Goals	Penetration of OMRON Group Rules^* at global locations
FY2021 Progress	Completed penetration of OMRON Group Rules and updates
Case Studies	Conducted global compliance education focusing on the OMRON Group Rules for Ethical Conduct during Global Corporate Ethics Month Revised rules to reflect revisions to the Personal Information Protection Act and service quality assurance based on our Long-Term Management Plan
Social Value Created	Implementing appropriate anti-corruption measures taking into account the political, economic, and cultural circumstances of each country, and contributing to the maintenance of an orderly and healthy society based upon the rule of law. Ensuring fair business practices in conformance with applicable laws of respective countries and global rules, thereby contributing to the realization of the society that allows fair and free competition.

*OMRON Group Rules (OGR): Internal rules established as a foundation for management in order to ensure transparency, fairness, and globality of management, and to ensure appropriate and prompt decision-making. These encompass 23 separate topics, including ethical conduct, risk management, unauthorized control, information security, safety assurance business management, IT controls, accounting and funding, labor and occupational health, environmental management, procurement, and brand logo management.

Privacy and Data Security

OMRON's Initiatives	<Rebuilding an Information Security Management System> Support for revised and newly enacted laws worldwide concerning the protection of personal information Strengthened technical measures to counter the sharply increasing cyber attacks
FY2021 Goals	Formulate and begin implementation of a medium- to long-term plan for upgrading information security in response to changes in the environment
FY2021 Progress	Selected management measures to strengthen as a priority for the OMRON Group in accordance with global standards (NIST CSF^*); completed the formulation of a medium-term plan for information security Introduced and began operations of attack detection tools in advance of other entities (Japan)
Case Studies	Developed a long-term strategy and initial three-year detailed plan for information security Prepared for global implementation of new controls to detect attacks quickly and prevent damage; began pre-implementation and operations in Japan
Social Value Created	Enable appropriate management of confidential data and personal information to help conduct business safely and securely in a digitized society

*NIST CSF: Cyber Security Framework developed by the National Institute of Standards and Technology (U.S.)

Sustainability Management

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