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OMRON Sustainability

Sustainability Issues and Goals

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

Sustainability Issues and Goals

Sustainability Issues and Goals

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. OMRON set VG2.0 goals and is working since fiscal 2017 to achieve the goals. By aligning visions and directions of sustainability initiatives with VG2.0, OMRON is working toward sustained enhancement of corporate value.

Issues to solve through business
  • Factory Automation: Respond to labor shortages and diversifying manufacturing practices
  • Healthcare: Zero brain and cardiovascular diseases, respiratory diseases
  • Social Solutions: Contribute to secure, safe, and pleasant lifestyles for people around the world
Issues to respond to stakeholder expectations
  • Talent Attraction and Development
  • Diversity and Inclusion
  • Wellness Management
  • Occupational Health and Safety
  • Respect for Human Rights and Labor Practices
  • Product Safety and Quality
  • Reduction of Greenhouse Gas Emissions
  • Appropriate Management and Reduction of Hazardous Substances
  • Supply Chain 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 began initiatives to achieve these targets in fiscal 2017.

Factory Automation

Social Issues
  • Shrinking labor force, as an issue in global manufacturing
  • Shortage of skilled workforce on production floors and requirements of increasingly advanced & diversifying manufacturing processes
VG2.0 Goals Generate applications to embody the concept of innovative-Automation* in our four focused industries, establish control technologies, and develop new products—Generate Control Technologies for Manufacturing Innovation—
2020 Progress
• integrated:
Released the world's first integrated robot controller. Facilitated the building of remote systems through the fusion of virtual and real, achieving these and other advanced, automated manufacturing innovations.
• intelligent:
Tested and develop 5G solutions, accelerated productivity improvement using IoT data
• interactive:
Contributed to the automation of assembly, transportation, and inspection operations at customer manufacturing sites by utilizing mobile robots and collaborative robots
Social Value Contribute to economic development by improving social productivity
  • *: innovative-Automation is 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).
[Applications and products embodying innovative-Automation]
  • integrated (Evolution in Control)
    3D Vision Sensing Technology for Robot Hands
  • Intelligent (Intelligence developed through ICT)
    Vision System with Defect Detection AI
  • interactive (New harmony between humans and machines)
    Cell-Line Control System

Healthcare

Social Issues
  • Increased incidence of brain and cardiovascular diseases attributable to high blood pressure
  • Increased worldwide prevalence of asthma and other respiratory diseases
VG2.0 Goals
  • Blood pressure monitor sales: 25 million units/year
  • Development of analytical technologies to continuously track blood pressure fluctuations
  • Nebulizers and wheeze detector sales: 7.65 million units/year
2020 Progress
  • Blood pressure monitor sales: 24 million units/year
  • Conducted two clinical research projects. Launched telemedicine service in North America.
  • Nebulizer + wheeze sensor sales: 3.41 million units/year. Launched wheezing sensor in Europe. Promoted the value of wheeze sensors via seminars with doctors in Europe.
Social Value 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)
[Initiatives in areas in which a sufficient global market scale is forecast, and in which we can demonstrate our strengths]

As well as aiming for zero events (preventing the onset of serious disorders (events) such as strokes and myocardial infarctions that are caused by high blood pressure) and zero asthma attacks, we are aiming to solve social issues by achieving personalized medicine.

  • Information campaigns in Turkey (OMRON Academy)

Social Solutions

Social Issues
  • Increase in traffic accidents and traffic jam
  • Global warming from CO2 emissions
  • Slow expansion of the renewable energy market
VG2.0 Goals
  • Creation of safe driving support systems and technologies
  • Cumulative shipped capacity of solar power/storage battery systems:11.2GW
  • Build an energy resource aggregation business using solar power/storage battery systems (Japan)
2020 Progress
  • Analyzed and verified the correlation between risk and changes in driving behavior, including joint research on driving risk detection in collaboration with universities
  • Solar power systems: Cumulative shipment capacity of 10.3GW; Storage battery systems: Cumulative shipment capacity of 695MWh
  • Provided power conditioners to maximize self-consumption and energy management systems for BCP measures in emergencies.
Social Value
  • 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>

  • 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
  • Fostering of self-motivated employees who can achieve self-transformation and development
VG2.0 Goals
  • Continued evolution of TOGA* towards meeting OMRON Principles
  • Ratio of non-Japanese in key managerial positions overseas: two-thirds (66%)
  • Accelerate PDCA implementation through employee engagement surveys
2020 Progress
  • Participation in TOGA Global Conference: A record 16,000 people, including 200 guests Entries submitted: a total of 6,461 entries (representing 51,033 people)
  • Localization ratio was three-fourths (75%)
  • Response rate: 90% (established consistent cycle of listening to and implementing employee feedback)
Case Studies
  • A total of 51,033 employees (1.8 times entire employee base) engaged in 6,461 projects, continuing to share best practices
  • Used periodic talent reviews in the selection of successors, and in localized positions. Systematic provision of opportunities for rotating roles and responsibilities as well as training aimed at the appointment of selected successors.
  • To create a work environment in which employees can fully express their abilities, we strengthened workplace communications between superiors and subordinates, simplified rules, adopted systems for more flexible work styles, and leveraged IT infrastructure
Social Value
  • 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 (OMRON Group in Japan)
  • Promoting career advancement for the disabled
VG2.0 Goals
  • Ratio of women in managerial roles: 8%*1 (OMRON Group in Japan)
  • Ratio of employees with disabilities: Increase number of such employees to above the legally-mandated ratio (OMRON Group in Japan)
2020 Progress*2
  • Ratio of women in managerial roles: 6.7% (OMRON Group in Japan)
  • Ratio of employees with disabilities: 3.0% (OMRON Group in Japan) (legally mandated ratio: 2.2%)
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
  • Achieving a workplace in which diverse human resources can play an active role, regardless of the presence of limitations such as gender or disabilities.
  • *1: Ratio of women in managerial roles — April 2022 Goal/KPI
  • *2: (1) is for April 2021, (2) is for June 2020

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
VG2.0 Goals
  • Improve awareness of wellness management (spread activities based on Boost5* globally)
2020 Progress Achievement in at least three of the Boost5 categories: 45.3% (issues related to exercise and meals remained due to COVID-19; online events held to improve health awareness of overseas employees)
Case Studies
[Within Japan]
  • Published the OMRON White Paper, and made employees aware of the relationship between Boost5 and employee health and performance.
  • As one measure to support smokers in quitting tobacco, the Quit Smoking Marathon was held to offer them team support.
    (In FY2020, OMRON Group companies in Japan adopted a policy prohibiting smoking during work breaks while in the office)
[Overseas]
  • Established Boost5 in each region and implemented activities (10,000 steps-per-day challenge to all employees, weight-loss competition, kickboxing classes, health seminars, mental health counselors, smoking cessation support by specialists, etc.)
Social Value
  • Promoting employee health management and fitness increases productivity and employee creativity, as well as contributing towards job satisfaction and a sense of meaning for all employees. This is also effective in reducing medical costs.
  • *Boost5: We selected and standardized five factors related to the ability to concentrate at work and live a fulfilled life (exercise, sleep, mental health, nutrition, smoking).

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
VG2.0 Goals
  • Number of major production centers acquiring international health and safety standards: Acquisition at centers comprising 80% of production
  • Continue assignments of promotion personnel: All covered sites
2020 Progress
  • Completed certification for sites representing more than 80% of production capacity
  • Maintained assignments of occupational health and safety managers
Case Studies
  • Introduced an OSH management system to investigate occupational risks; pursuing measures to improve processes for self-directed recurrence prevention at each location
  • Identified and prioritized regions/facilities requiring more personnel; implemented appropriate personnel assignments
Social Value
  • 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
VG2.0 Goals
  • Define and adopt due diligence process
  • Implemented analyses and corrective actions regarding human rights risks at all production sites
2020 Progress
  • In addition to our own employees, we expanded the scope for employees of temporary staffing companies and contractors
  • Conducted risk analyses and implemented corrective measures at all 25 manufacturing sites
Case Studies
  • Developed training content for employees of contractors working at our locations; implemented human rights training for representatives of the said employees; provided access to relief measures for employees of contractors
  • Communicated our policies to employee dispatch companies and contractors
  • Implemented risk assessments at 19 production locations using RBA SAQ (self-assessment questionnaire); confirmed all locations qualified as Low Risk
Social Value
  • 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
VG2.0 Goals
  • Ratio of newly developed products undergoing safety assessment: 100%
  • Improve product safety assessments
2020 Progress
  • Product safety assessments for newly developed products: 100%
  • Confirmed application to 101 newly developed products
Case Studies
  • Expanded assessment details for the application of latest safety standards, laws, and regulations and to improve market and customer usability, and apply this to assessment processes in each business.
Social Value
  • Incorporating quality, safety, environmental, and human rights into products and services, to bring about sustainable manufacturing.
  • *OMRON Group Rules: 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 24 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.

Supply Chain Management

OMRON’s Initiatives

<Engagement with Partners>

  • Holding of Global Partner Conference
  • Promotion of sustainability self-assessment for important suppliers*1
  • Introduction of management compliant with RBA*2, and initiatives to maintain and improve this
VG2.0 Goals
  • Sustainability self- assessment for important suppliers (Partner Suppliers): 100% implementation ratio
  • Sustainability self- assessment: Achieved RBA score of 85 or more
2020 Progress
  • Self-checks: 100% of critical suppliers
  • All critical suppliers achieved at least 85 points (low risk) in RBA standard score
Case Studies
  • At the Global Partner Conference, requested that Partner Suppliers conduct sustainability assessments and improvements
  • Used individual meetings to dialogues with these suppliers, and to further communicate that sustainability is an issue for business
  • Visited suppliers who have not implemented sustainability self-assessment, and requested their cooperation
  • Conducted individual dialogues with suppliers with less than 75 points, and conducted follow-up to improve understanding
    (Based on the improvement plans, we verified the consistency of initiatives between the person in charge at the critical supplier and our CSR manager, completing the self-check)
Social Value
  • By solving social issues in the supply chain in cooperation with suppliers, achieving a society capable of sustainable production and consumption.
  • *1: Sustainability 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)
  • *2 RBA: abbreviation of Responsible Business Alliance. Global CSR alliance centered around the electronics industry.

Reduction of Greenhouse Gas Emissions

OMRON’s Initiatives

<Advancement of Green OMRON 2020>

  • 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
VG2.0 Goals
  • Reduce total GHG emissions by 4% (vs. fiscal 2016)
  • Environmental contribution exceeds CO2 emissions from production centers
2020 Progress
  • Reduce total GHG emissions by 50% (vs. fiscal 2016)
  • Environmental contribution: 826kt-CO2 > Production location CO2 emissions: 106kt-CO2
Case Studies
  • PV installation: 4 locations in Japan
  • Renewable energy procurement: 6 locations in Japan
  • Energy reduction through equipment upgrades and optimized operations (Shenzhen, China, production factory)
  • On-site inspection to plan measures for energy conservation and use of renewable energy at production factory in Indonesia
Social Value
  • Making sustainable manufacturing a reality by reducing greenhouse gas emissions, and bringing about a low-carbon society.

Appropriate Management and Reduction of Hazardous Substances

OMRON’s Initiatives

<Advancement of Green OMRON 2020>

  • 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
VG2.0 Goals
  • Reduce mercury through prevalent usage of digital thermometers and blood pressure monitors: 69 tons/year
  • Stop use of CFCs in FY2018. Also stop use of HCFCs and mercury (fluorescent lamps) in FY2020
2020 Progress
  • Mercury reduction: 70t/year
  • Eliminated the use of CFCs and mercury one year ahead of schedule
Case Studies
  • Exhibits at trade shows and academic societies for ongoing educational activities for doctors
Social Value
  • Realization of a low-carbon 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
VG2.0 Goals
  • Continuous evolution of group governance
2020 Progress
  • Completed OMRON Group Rules * development and mechanism for global rollout
Case Studies
  • Governance training for newly appointed directors (Japan), Ethics Meeting (Americas)
  • CEO message (translated into 25 languages; delivered to all global company employees)
  • E-learning for all employees during Global Corporate Ethics Month (bribery prevention, etc.)
  • Use promotion videos and posters, etc., to encourage understanding of the internal whistleblowing system (Europe)
Social Value
  • 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 24 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
  • Implement revisions in education on information security, and continue with education
VG2.0 Goals Build a new information security system
2020 Progress Consistent engagement in activities based on clearly defined responsibilities, including the promotion of measures by specialized departments such as legal and IT, as well as regular activities by the Information Security Management Committee
Case Studies
  • Survey into personal information protection laws in each country, and updated OMRON Group Rules (OGR) *
  • Improved training of employees in personal information security (cyber attack training, etc.)
  • Globally conducted website vulnerability assessment and management monitoring
Social Value
  • Enable appropriate management of confidential data and personal information to help conduct business safely and securely in a digitized society
  • *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 24 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.
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