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.

Medium-term Management Plan

Materiality

Identification

We evaluated and identified events that could pose serious threats from recent changes in the environment, reviewed their material issues to be addressed preferentially, and set KPIs, which would be specific target values.
In addition, we linked and organized the relationship between the revised materiality and the 169 targets of SDGs.
By working to achieve these goals, we aim to realize Vision 2030 and resolve social issues.

Identification

Promotion framework

Initiatives for materiality, KPI

Materiality Related SDGs Main initiatives Targets and KPIs 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 emissions (Reduction compared to FY2013) 2030 50%
2050 Carbon neutrality		 30.3%
Adoption of renewable energy Introduction to model plants. Electricity: 5 plants (Seki, Gifu, Higashiura, Kariya, Electronic Components)*1
Adoption 100%
Gas: 2 plants (Kariya, Gifu)*2
Adoption 100%
  • Purchasing FIT non-fossil fuel energy certificates, on the non-fossil value trading market of Japan Electric Power Exchange (JEPX), that certify the non-fossil value of electricity purchased through a Feed-in Tariff (FIT) scheme that trades in electricity generated from solar, wind, and other renewable energies at fixed prices for fixed periods
  • Adopting carbon neutral city gas, provided by Toho Gas Co., Ltd., produced using carbon-offset LNG that offsets CO2 emitted throughout the process from natural gas extraction to combustion by reducing and absorbing the CO2 through forest conservation and other projects
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 2,350 t/year
(Byproduct recycling rate of 98.6%)
Atmospheric pollutant emissions
(NOx, SOx)		 Less than 80% of regulation level 80% or higher than regulation level 0 days
(Total emissions: NOx 132 t, SOx 1.36 t)
Industrial wastewater pollution load
(COD, nitrogen, phosphorus)		 Less than 80% of regulation level 80% or higher than regulation level 0 days
(COD 7.01 t, nitrogen 5.96 t, phosphorus 0.26 t)
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 ¥44 billion
(previous fiscal year: \43.4 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)		 80% 80%
ATSG (Ver. 7) compliance
(Domestic and overseas subsidiaries)*3		 100% 95%
  • All eight domestic subsidiaries and five overseas forging subsidiaries
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)		 12 per year 19 per year
Number of recurring complaints
(release of defects to customers)		 4 per year 0 per year
Reduction of quality-related loss
(compared to FY2018)		 -27% -29%
Production
Crude steel production 1,045,000 t
(previous fiscal year: 872,000 t)
Forged product production 266,000 t
(previous fiscal year: 235,000 t)
Electronic component production 36,900,000 sets
(previous fiscal year: 28,300,000 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 per year 0 per year
Overall accident frequency rate 0.60% 0.93%
Number of fires and explosions 0 per year 1 per year
Health
Lost worktime rate due to injury or sickness 0.56% 1.44%
Lost worktime rate due to mental health 0.21% 0.37%
Rate of employees over appropriate weight
(BMI of 25 and higher)		 27% 32%
Workstyles and HR 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 14.0 days/year 17.4 days/year
Overtime
(per person, office)		 139 hours/year 160 hours/year
Employee satisfaction
(out of 5)		 3.6 pts ─
Workplace management survey
(positive response rate)		 76.0% 80.7%
Workplace capability survey
(positive response rate)		 66.0% 71.0%
HR Development
Investment in education and training (per person) 24,000 yen/year
(previous fiscal year: 21,000 yen/year)
Time spent in education and training (per person) 10.9 hours/year
(previous fiscal year: 14.9 hours/year)
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 3 4
Employee satisfaction
(aged 60 and above, out of 5)		 3.7 pts ─
Employees with disabilities 2.3% 3%
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 spaces 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) 5,000 people per year 6,581 people per year
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 systems 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 systems that eliminate violations, in line with the Aichi Steel Group Action Guidelines
 Serious violations of laws and regulations 0 per year 0 per year
Serious failings of internal control systems 0 per year 0 per year