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 FY2024-26 Medium-term Management Plan is the second 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

Materiality

Basic approach

In line with Our Vision, we believe that helping to realize a sustainable society through our business activities will enhance our corporate value in the medium to long term. To realize this, we formulated a basic policy in our Vision 2030: "Enhance earning power by reforming business and manufacturing while implementing ESG management." We have identified key issues to be addressed and set KPIs as specific goals. By working to achieve these, we aim to realize our Vision 2030 and solve social issues.

Promotion structure

Under the leadership of the management team, Aichi Steel brings together the cross-division functions of administrative divisions and the business focus of in-house companies to drive our 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 the 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.

Identification process

Identification process

Management system

Management system

Priority issues, main KPIs, target years, and targets

Materiality KPI FY2023 results Main initiatives Related SDGs
Climate Change CO2 emission reduction rate (compared to FY2013) 20.5% [Targets]
2030:
50% reduction
2050:
Carbon neutrality
  • Promoting thorough energy-saving activities by streamlining manufacturing processes, etc.
  • Promoting the use of clean energy such as solar power generation, including in-house power generation
  • Developing innovative technologies such as high-efficiency electric furnaces and the use of hydrogen and ammonia
7
13
Resource Recycling Byproducts sent to landfill 2,430 t/year
  • Promoting recycling of by-products (slag, dust, scale, etc.)
  • Promoting efforts to keep SOx and NOx emission levels low
12
Atmospheric pollutant emissions (NOx, SOx) Total emissions: NOx 96 t/yr, SOx 1.90 t/yr
Industrial wastewater pollution load (COD, nitrogen, phosphate) COD 10.57 t/yr, nitrogen 4.87 t/yr, phosphate 0.19 t/yr
Procurement Green Procurement Guidelines dissemination rate 100%
  • Promoting environmental conservation activities in cooperation with suppliers based on Green Procurement Guidelines (e.g. priority purchasing of environmentally friendly products)
  • Complying with desirable business practices (promotion standards) with suppliers based on Declaration of Partnership Building
12
Number of breaches of the Subcontracting Act 0
Technology Innovation Number of patent applications 61
  • Promoting R&D and early commercialization integrated with business strategy to realize "Creation of a prosperous society through business reform"
  • Strengthening development foundation through AI and other advanced IT and analytic technologies and strategic patent applications
9
Cybersecurity Serious incidents due to cyberattacks 0
  • 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.
9
Quality and Production Number of defects released to customers 19
  • Further strengthening quality management systems through acquisition of IATF 16949 certification
  • Implementing measures to prevent recurrence of complaints by pursuing the true cause more thoroughly
  • Establishing a production base capable of providing a stable supply of TPS-based products in a timely manner
12
Crude steel production 943,000 tons
Forged product production 242,000 tons
Electronic component production 45.6 million sets
Safety and Health Number of serious accidents 0
  • Creating a place where accidents do not occur based on a safety risk assessment
  • Promoting recurrence prevention to eliminate similar accidents
  • Promoting health management to maintain and improve mental and physical health
3
8
Lost worktime rate due to injury or sickness 0.95%
Workstyles and Human Resource Development Days of annual paid leave taken 15.2 days
  • Establishing flexible work systems enabling employees to balance work and life events
  • Developing and introducing a workplace environment and personnel system for diverse employees to be highly motivated and flourish
  • Improving off-the-job training based on an education system according to job classification and level, and investing in skills and potential development in step with management strategy
8
Monthly overtime (per person, office) 13.9 hours
Education time per person 13.4 hours
Diversity Number of female managers 5
10
Coexistence with Community Volunteer activity participation rate 78%
  • Promoting biodiversity preservation and activities to achieve harmony with nature through efforts such as creating a natural ecosystem in the Nakashinden green space around our plant (about 20,000 m²)
  • Communication with local communities through social contribution activities
15
Human Rights Human rights education in job-specific training 100%
  • Business activities that respect human rights in accordance with the Aichi Steel Group Action Guidelines
  • Fostering high ethical standards and human rights awareness through employee education
  • Development and strengthening of human rights protection systems, including whistle-blowing system
16
Legal Compliance Serious violations of laws and regulations 0
  • 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
16
  • FY2023 results are non-consolidated for Aichi Steel