Management

Three Management Guidelines to Realize Vision 2030

We formulated "Aichi Steel Group: Vision 2030" in 2020.
Setting forth "Enhance earnings capacity by reforming business and manufacturing capabilities while putting ESG management into practice" as our basic policy, we established three major management guidelines.
We will develop activities actively to become a leading company in ESG management, such as significantly transforming the business model mix, contributing to the global environment and the society through investment for growth, and creating a company where employees can work vigorously with motivation and pride.
In addition, we will strengthen the foundation of the company through digital transformation (DX) and accelerate our efforts.

Positioning of Vision 2030 and the New Medium-term Management Plan

The FY2021-23 Medium-term Management Plan is the first step in our execution plan, which lays down specifics on key issues to be addressed and paths in order to realize Vision 2030.
We will always keep our antennas high in the business environment that is changing rapidly and from moment to moment, respond to changes with agility and flexibility, and steadily reach milestones toward achieving our vision.

Positioning of Vision 2030 and the New Medium-term Management Plan

Medium-term Management Plan

Priority Issues (Materiality)

Basic approach

In line with Our Vision, "We will strive to make positive contributions to society by providing appealing products from global perspectives and based on our vibrant and trustworthy corporate qualities," Aichi Steel considers that contributing to the realization of a sustainable society through our businesses activities will lead to improved medium to long-term corporate value. To achieve this, we established "Enhance earnings capacity by reforming business and manufacturing while putting ESG management into practice" as our basic policy in Vision 2030, while identifying priority issues to address and setting KPIs as specific targets. Through these initiatives, we aim to realize our Vision 2030 and address social issues.

Promotion structures

Aichi Steel brings together the leadership of its management team, cross-division functions of administrative divisions, and business focus of in-house companies to drive sustainability initiatives. The business promotion councils manage action plans and progress to ensure KPIs are achieved, and regularly report to the Top Management Meeting and Board of Directors. The Top Management Meeting carries out regular reviews based on progress of each initiative, social trends, and changes in the business environment. After revising priority issues (materiality) and KPIs, and discussing and considering how to reflect the changes in management policy, planning, and strategy, the Top Management Meeting decides important matters through discussion with the Board of Directors.

Identi cation of priority issues

Identi cation of priority issues

Promotion framework

Promotion framework

Priority issues, main KPIs, target years, and targets

Priority issues Main KPIs Target years Targets
Climate Change CO2 emission reduction rate (compared to FY2013) 2030 -50%
Resource Recycling Byproducts sent to landfill 2030 2,000 t
Procurement Green Procurement Guidelines dissemination rate Yearly 100%
Technology Innovation Number of patent applications Yearly 50 or more
Cybersecurity Number of serious incidents due to cyberattacks Yearly None
Quality and Production Reduction of quality-related loss (compared to FY2018) 2030 -80%
Safety and Health Overall accident frequency rate 2030 0.0
Workstyles and Human
Resources Development		 Employee engagement 2030 4.0 pts
Diversity Number of female managers 2030 10 or more
Coexistence with Community Nakashinden green space bioindicator species 2030 35 species
Human Rights Human rights education in position-specific education Yearly 100%
Legal Compliance Serious violations of laws and regulations Yearly None

Initiatives for materiality, KPI

Materiality Related SDGs Main initiatives Targets and KPIs FY2022 targets
(excluding Climate Change)		 Achievements
Climate Change
  • Promoting thorough energy saving activities by streamlining manufacturing processes, etc.
  • Promoting utilization of clean energy from solar power generation, including in-house power generation, etc.
  • Developing innovative technologies, including use of high-efficiency electric furnaces, and hydrogen and ammonia
 CO2 emission reduction rate 2030: 50% reduction (compared to FY2013)
2050: Carbon neutrality		 22%
Adoption of renewable energy 2030: 100% adoption of renewable energy by 1 plant 100% adoption of renewable energy by 5 plants
Resource Recycling
  • Promoting recycling of byproducts (slag, dust, scale, etc.)
  • Promoting initiatives to maintain low levels of SOx and NOx emissions
 Byproducts sent to landfill 2,500 t/year 2,507 t/year
(Byproduct recycling rate: 99.0%)
Atmospheric pollutant emissions (NOx, SOx) 80% or higher emissions than regulation level
0		 0
(Total emissions: NOx 118 t/yr; SOx 1.85 t/yr)
Industrial wastewater pollution load (COD, nitrogen, phosphorus) 80% or higher emissions than regulation level
0		 0
(COD: 9.80 t/yr; nitrogen: 4.98 t/yr; phosphorus: 0.54 t/yr)
Procurement
  • Promoting environmental conservation activities based on the Green Procurement Guidelines in collaboration with suppliers (priority purchase of environmentally friendly products, etc.)
 Green Procurement Guidelines dissemination rate 100% 100%
Number of breaches of the Subcontracting Act 0 0
Technology Innovation
  • Promoting research and development integrated with business strategies to realize the management guideline of "Creation of a prosperous society through business reform"
  • Strengthening development infrastructure through advanced IT and analysis technologies (AI, etc.) and strategic patent applications
 R&D expenses ¥4.40 billion
(previous fiscal year: ¥4.34 billion)
Number of patent applications 50 64
Cybersecurity
  • Enhancing security through establishment of internal structures, and communication, education, and inspection of rules, in compliance with the All Toyota Security Guidelines (ATSG) shared by Toyota Group companies, etc.
 Serious incidents due to cyberattacks 0 0
ATSG (Ver. 8) compliance (Aichi Steel unconsolidated) 90% 90%
ATSG (Ver. 2) compliance (Aichi Steel unconsolidated) 79% 79%
Quality and Production
  • Further strengthening the quality management system through acquisition of IATF 16949 certification
  • Fully implementing measures to prevent recurring complaints by strengthening efforts to pursue their true causes
  • Building TPS-based production infrastructure that enables on-time stable supply of products
 Quality
Total number of complaints (release of defects to customers) 8 19
Number of recurring complaints (release of defects to customers) 3 0
Reduction of quality-related loss (compared to FY2018) -35% -38%
Production
Crude steel production 891,000 t
(previous fiscal year: 884,000 t)
Forged product production 2225,000 t
(previous fiscal year: 261,000 t)
Electronic component production 39,800,000 sets
(previous fiscal year: 36,900,000 sets)
Safety and Health
  • Creating workplaces without accidents through safety risk assessments
  • Promoting recurrence prevention to eliminate similar accidents
  • Promoting health and productivity management to maintain and improve mental and physical health
 Safety
Number of serious accidents 0 0
Overall accident frequency rate 0.60% 0.93%
Number of fires and explosions 0 1
Health
Lost worktime rate due to injury or sickness 0.50% 1.44%
Lost worktime rate due to mental health 0.17% 0.38%
Rate of employees over appropriate weight (BMI of 25 and higher) 27% 32%
Workstyles and Human Resources Development
  • Developing flexible working systems for balancing work with important life events
  • Developing and adopting workplace environments and human resources systems that enable diverse employees to be highly motivated while playing active roles
  • Enhancing off-the-job training using job-specific and position-specific education systems, and promoting investment in skill and capability development in connection with management strategies
 Workstyles
Days of annual paid leave taken 20 days 17.4 days
Monthly overtime (per person, office) 11.4 hours 13.4 hours
Employee satisfaction (out of 5) N/A N/A*1
Office workplace management survey (positive response rate) 79.0% 80.7%
Workplace capability survey (positive response rate) 71.0% 71.0%
Human resources development
Investment in education (per person) 24,000 yen
(previous fiscal year: 21,000 yen)
Time invested in education (per person) 10.9 hrs
(previous fiscal year: 14.9 hours)
  • Survey conducted once every two years, so no targets or achievements for FY2022
Diversity
  • Developing flexible working systems for balancing work with important life events
  • Developing and adopting workplace environments and human resources systems that enable diverse employees to be highly motivated while playing active roles
  • Enhancing off-the-job training using job-specific and position-specific education systems, and promoting investment in skill and capability development in connection with management strategies
 Number of female managers 4 4
Employee satisfaction (aged 60 and above, out of 5) N/A N/A*2
Employees with disabilities 2.3% 3.0%
  • Survey conducted once every two years, so no targets or achievements for FY2022
Coexistence with Community
  • Promoting biodiversity preservation and activities to achieve harmony with nature through efforts such as creating a natural ecosystem in part of the Nakashinden green space around our plant (about 20,000 m²)
  • Promoting communication activities with local communities through social contribution activities
 Nakashinden indicator species 23 species 19 species
Number of volunteers (total) 10,000 6,581
Human Rights
  • Conducting business activities that respect human rights in line with the Aichi Steel Group Action Guidelines
  • Fostering a high level of ethics and awareness of human rights through employee education
  • Developing and strengthening human rights protection structures such as the whistle-blowing system
 Human rights education in job-specific training 100% 100%
Legal Compliance
  • Sharing a high level of ethics, improving awareness and knowledge through training and seminars, etc., and continuing to strengthen internal structures that eliminate violations, in line with the Aichi Steel Group Action Guidelines
 Serious violations of laws and regulations 0 0
Serious failings of internal control systems 0 0