CSR Activities: Targets and Results

Murata commits itself to continual improvement in priority theme areas through the implementation of a broad range of measures.
Reduction of Environmental Impact Arising
Targets for FY2018 Results for FY2018 Achievement FY2019 to FY2021 medium-term targets Targets for FY2019
[Products]
Establish evaluation methods for the amount of contribution to CO2 emissions reduction at the usage stage of our products.
[Products]
Verified rules for the calculation of degree of contribution to reduction of CO2 emissions for all Murata products.
[Products]
Provisionally adopt a system to save resources and suppress emissions of environmentally harmful substances by taking the environment into consideration at the product planning and design stage.
[Products]
Investigate the planning and design process and issues for each business and product family and organize environmental aspects that could impact business plans.
[Chemical substances]
None
[Chemical substances]
None
[Chemical substances]
●Apply green procurement based on Murata's standards*1 to raw materials, parts, and products delivered to Murata.
●Specify applicable substances in Murata's standards*1 and manage them in the following categories:
Rank A: Use prohibited
Rank B: New use prohibited (if in use, substitute by certain time)
Rank C: Avoid use and reduce transfer and release
Rank D: Monitor inclusion and usage, and use under proper control
[Chemical substances]
●Transition the medium for obtaining component content information for molded items from the green procurement inquiry form to chemSHERPA.
●Specify applicable substances in Murata's standards*1 and manage them in the following categories:
Rank A: Use prohibited
Rank B: New use prohibited (if in use, substitute by certain time)
Rank C: Avoid use and reduce transfer and release
Rank D: Monitor inclusion and usage, and use under proper control
[Climate change]
Reduce total greenhouse gas emissions in FY2018 to 1.2 million ton-CO2
or less.
[Climate change]
Took energy-saving measures at each worksite, but greenhouse gas emissions in FY2018 totaled 1.65 million tons CO2.
× [Climate change]
●Develop a method for investigating suppliers' current situation and requesting establishment of goals, in order to encourage suppliers to establish GHG reduction targets based on Science Based Targets (SBT).
●Reduce total greenhouse gas emissions for FY2021 to 1.4 million tons CO2 or less.
●Reduce greenhouse gas emissions per unit of real production for distribution in Japan to 2.0 kg/million yen or less.
●Expand target scope of greenhouse gas emissions for distribution.
[Climate change]
●Investigate current situation using a questionnaire given to applicable suppliers.
●Reduce total greenhouse gas emissions for FY2019 to 1.67 million tons CO2 or less.
And, establish a scheme to achieve the 21F emissions target of 1.4 million tons CO2 or less.
●Calculate CO2 emissions for distribution in Japan.
●Expand target scope of greenhouse gas emissions for distribution.
[Resources, water, air]
●Continue to work in FY2018 toward the achievement of our medium-term FY2016-2018 target (Improve average waste emissions per unit of real production in FY2016 to FY2018 by 3% [compared to FY2011 to 2015 average])
●Continue to work in FY2018 toward the achievement of our medium-term FY2016-2018 target (Improve average water usage per unit of real production in FY2016 to FY2018 by 3% [compared to FY2011 to FY2015 average])
●Enhance rainwater discharge management in order to reduce water pollution risk.
[Resources, water, air]
●Average waste emissions in FY2016-2018 worsened by 29% per unit of real production (compared to FY2011-2015 average).
●Average water usage in FY2016-2018 improved by 14% per unit of real production (compared to FY2011-2015 average).
●Used interviews at worksites and global techniques to advance consideration of risk assessment methods. Also advanced establishment of rules for rainwater discharge management.
[Resources, water, air]
●Improve waste emissions per unit of adjusted production in FY2021 by 7% (compared to average FY2016-2018 average).
●Improve water usage per unit of adjusted production in FY2021 by 6% (compared to average FY2016-2018 average).
●Establish a management system for VOC emissions. ●Investigate resource recycling regulations and industry trends.
●Establish a feasible scheme and verify economic effects.
[Resources, water, air]
●Reduce waste emissions per unit of adjusted production in FY2019 to the previous year's level or less.
●Improve water usage per unit of adjusted production in FY2019 by 5% (compared to average FY2016-2018 average).
●Establish a calculation method for VOC emissions at worksites outside Japan.
●Investigate regulatory trends related to plastic in and outside Japan.
●Specify the wastes for inclusion in the recovery and recycling scheme.

*1: Standards for identifying substances that Murata will manage as regulated, out of the substances that are contained in Murata's products and materials and that have an impact on the environment, and that establish regulatory requirements and regulatory ranks for each substance.


Corporate Governance
Targets for FY2018 Results for FY2018 Achievement FY2019 to FY2021 medium-term targets Targets for FY2019
Continue and improve timely and appropriate information provision to executives and further invigorate discussions of strategy in board meetings. Made continual improvements based on results of analysis and evaluation of effectiveness of the board of directors. See the Corporate Governance Report submitted to the Tokyo Stock Exchange for details. Achieve sustainable growth by improving management transparency and auditing effectiveness, with a view to increasing Murata's corporate value. Continue and improve timely and appropriate information provision to executives and further invigorate discussions of strategy in board meetings.
Continueto establish internal controls, and achieve a record of zero major incidentsinvolving compliance with laws and regulations, our company statutes, internalregulations, etc. Continued to establish internal controls, and achieved a record of zero major incidents involving compliance with laws and regulations, company statutes, and internal regulations, etc. Continue to establish internal controls, and achieve a record of zero major incidents involving compliance with laws and regulations, company statutes, and internal regulations, etc.
Implement efficient audits and promote expansion of internal controls at newly established bases and M&As in order to respond to our global expansion. Expanded internal controls by supporting the development of internal controls and conducting follow-up audits at four sites out of the new worksites and M&As established in and outside Japan. Implement efficient audits and promote expansion of internal controls in response to our global expansion.


Promoting compliance
Targets for FY2018 Results for FY2018 Achievement FY2019 to FY2021 medium-term targets Targets for FY2019
[Entrenchment of compliance awareness]
●Continue to regularly disseminate information regarding compliance promotion activities (12 times/year)
●Conduct compliance verification tests and surveys
[Entrenchment of compliance awareness]
●Issued a monthly email newsletter on compliance knowledge (12 times/year).
●With October as Compliance Enhancement Month, conducted compliance verification tests and surveys in Murata and affiliate companies.
[Enhancement of compliance system]
Strengthen compliance system globally, including enhancing whistle-blowing systems at overseas affiliates.
[Enhancement of compliance system]
Consider how to enhance whistle-blowing systems at overseas affiliates.
[Enhancement of compliance education]
●Hold group discussions using timely case method, etc.
[Enhancement of compliance education]
With October as Compliance Enhancement Month, conducted group discussions at Murata workplaces and the workplaces of affiliated companies, using compliance-related cases in which judgment was difficult, including ethical dilemmas.
[Enhancement of compliance education]
●Identify material compliance topics to address, and plan and implement seminars.
●Continually plan and implement education and enlightenment activities to broadly raise the general level of knowledge and awareness of compliance.
[Enhancement of compliance education]
●Identify material topics to address, and plan and implement seminars.
●Hold group discussions using the timely case method, etc.
[Strengthening the foundation of global compliance]
●Flexibly rebuild and appropriately operate ongoing system for implementing the "Basic Policy for Prevention of Cartels and Bribery" based on specific circumstances in specific countries and regions, and utilize system to monitor, audit and instruct.
●Develop the PDCA cycle for more effective and highly transparent compliance promotion activities by including a process to verify and approve annual plans for global compliance promotion activities and the results of their implementation.
[Strengthening the foundation of global compliance]
● Conducted e-learning programs on cartels and bribery at Murata and affiliates in Japan. Conducted monitoring of control processes to prevent cartels and made necessary improvements.
●At subsidiaries outside Japan, introduced education and awareness programs and made progress in obtaining personal commitments to compliant practices by establishing control processes and conducting e-learning programs, and formulating and distributing guidelines and manuals, etc. to assist in preventing cartels.
[Expansion of global compliance]
Expand the PDCA cycle for global compliance activities, including control process monitoring and education, to subsidiaries outside Japan through collaboration with overseas headquarters, in order to implement the "Basic Policy for Prevention of Cartels and Bribery."
[Expansion of global compliance]
Conduct control process monitoring to prevent cartels in subsidiaries outside Japan.


Strengthening risk management
Targets for FY2018 Results for FY2018 Achievement FY2019 to FY2021 medium-term targets Targets for FY2019
Focus on the emergence of new risks as a result of changes in the business environment at the global level, and continue to respond. In addition, in relation to measures to prevent the manifestation of the main existing risks that might affect business continuity and reduce losses in the event of their manifestation, continue to conduct BCP training once a year, judge its effectiveness, and make improvements as necessary. Conducted two company-wide risk surveys and assessments in the year, and continually responded to risks faced by Murata. Conducted a BCP drill based on the scenario of an earthquake, judged the effectiveness of measures to prevent risks that could interfere with Murata's business continuity and measures to mitigate losses, and made improvements. Ensure that the PDCA for risk management at the corporate level functions effectively, and permeate the concept of risk management as a part of day-to-day operations. Watch for the emergence of new risks as a result of changes in the business environment at the global level, and respond continually. Continue to conduct BCP drills based on the scenario of an earthquake, judging the effectiveness of measures to prevent risks that could interfere with Murata's business continuity and measures to mitigate losses, and make necessary improvements.


Society and community
Targets for FY2018 Results for FY2018 Achievement FY2019 to FY2021 medium-term targets Targets for FY2019
●Continue to support the fostering of human resources that will lead us into the future by conducting science and environmental education for children.
●Continue to conduct activities that are deeply rooted in the local community and that make a contribution, including greenification of worksites, forest preservation activities, and participation in local community events.
●Expand activities that contribute to society on a global level.
Continued to expand community-based activities at each worksite in and outside Japan, including science and environmental education for children, forest preservation activities, participation in local community events, local cleanup activities, and welfare activities. Realize the philosophy of Murata's founder, "Wanting the presence of Murata to be the pride of the area, for Murata to be a company that is a source of joy" at a global level, with the aim of "harmony between people, the organization, and society." ●Continue to support development of children, who will lead the future, by conducting STEM and environmental education.
●Continue to conduct activities together with local communities, including greenification of worksites, forest preservation activities, and participation in local community events.
●Expand social and community contribution activities on a global level.


Suppliers
Targets for FY2018 Results for FY2018 Achievement FY2019 to FY2021 medium-term targets Targets for FY2019
Create and effectively implement in-house mechanisms for regular verification of the status of CSR compliance at suppliers. In addition, advance efforts to maintain and improve the details of these mechanisms together with suppliers. Reviewed past initiatives and stipulated internal rules for procedures and acceptance criteria. Cooperated with overseas worksites at that time, based on the premise of worldwide rollout. Achieve a supply chain that is as transparent as it needs to be, considering the requests of stakeholders, by developing and re-building conventional systems, including assessment of the status of suppliers' CSR compliance and responsible minerals procurement. ●Check the required level desired by customers, the OECD, industry organizations and other stakeholders, and clarify new due diligence requirements to establish in addition to existing systems.
●Expand the scope of management for responsible minerals procurement, including for cobalt, in addition to the conventional 3TG metals.
Implement training based on systematized actions to be taken when a disaster occurs, and make efforts to establish more practical procedures for action and improve the level of proficiency. In addition, expand activities to reduce risks other than disasters for some products. Revised the actions to be taken when a disaster occurs to make them more efficient and practical. Re-stipulate the changes to improve the system. Worked continuously at updating the supply chain database.


Employees
Targets for FY2018 Results for FY2018 Achievement FY2019 to FY2021 medium-term targets Targets for FY2019
[Continue activities to entrench diversity and inclusion at Murata]
●Continue meeting group activities and implement entrenchment activities in order to promote diversity and inclusion (holding of in-house lecture meetings, establishment of in-house webpages, etc.)

[Make efforts to ensure the possibility for active career formation and growth]
●Continue to promote autonomous career design / change in awareness in relation to ways of working: Conduct activities to increase awareness among management-level employees, promote awareness of career autonomy from an early stage, continue to conduct career training, conduct career interviews that promote career transformation

[Make efforts to promote advancement of female employees]
●Implement efforts toward promoting the participation of men in childcare

[Support career opportunities for seniors]
●Hold career management training sessions and career interviews.
●Conduct training in relation to provision of support for career opportunities for seniors
●Continued meeting group (M-DIP) activities, held internal lecture meetings by meeting group members, developed intranet webpages, produced and put up educational posters, and planned and implemented dialogue meetings.
●Continued to conduct various career training and rank-based training programs.
●Considered measures to encourage taking of childcare leave for spouse's childbirth.
●Conducted career management training sessions and career interviews.
[Promotion of diversity and inclusion]
●Create environments where human resources with diverse backgrounds can contribute to the organization by making the most of their abilities.
●Achieve a rate of 10% women in technical positions among new graduates hired in managerial track positions.
●Take initiatives to increase the number of women choosing to contribute through team management as women who assume a management role (highest position among ordinary [nonmanagerial] employees.
●Provide opportunities for persons with disabilities to do meaningful work, and develop a system enabling continual employment.
[Promotion of diversity and inclusion]
●Implement measures that allow people to work in diverse ways, with good mental and physical health.
●Take initiatives that help employees understand in a familiar way Murata's unique qualities expressed in the Murata Philosophy.
●Adopt personnel systems that motivate human resources in specialized positions.
●Explore initiatives to promote women's career formation and growth.
●Take initiatives to expand the scope of work of persons with disabilities.
●Improve work-life balance support handbook
●Hold workplace visit days for employees’ children
●Identify issues and continue to examine effective responses.
●Held workplace visit days for employees’ children.
●Changed the unit of time at which employees providing care to a family member can work reduced hours from one-hour units to 30-minute units.
●Continue to advance measures to promote the entrenchment and sharing of Murata’s Company Philosophy
●Promote workshops for sharing of the Philosophy organized by each base
●Continue hiring foreign employees and implement various related measures.
1. Accept foreign interns.
2. Provide Japanese language training to prospective foreign employees.
3. Promote the company brand at selected schools to increase motivation to seek employment with Murata.
●Promote acceptance of foreign employees on loan FY2018:110 people
●Conduct education to respond to global expansion (strengthening English language and Chinese language ability)
1.Conduct one set each of training programs to strengthen English language and Chinese language ability
2. Expand support tools for self-development.
●Continued holding training sessions given by officers.
●Took the following steps to encourage each worksite to hold workshop for sharing the Murata Philosophy:
1. Encouraged each worksite to hold a workshop on the Murata Philosophy in conjunction with the anniversary of Murata's founding.
2. Collected examples of people practicing the Murata Philosophy by soliciting descriptions of episodes from worksites in and outside Japan.
●To continue hiring foreign employees and implement various related measures, for students of IIT Bombay:
1. Conducted a two-month internship from May to July (three of the four internees planning to join Murata)
2. Provided a two-month Japanese language training program from July to September (9 people @ Bangalore)
3. Conducted and employment screening in December for people to join Murata in April 2019 and accepted 9 prospective employees.
●Foreign employees accepted on loan: 101 people (breakdown: employees on international loan: 42; company-arranged technical intern trainees: 59)
●Provided education for globalization (strengthen English and Chinese language abilities)
1. Conducted two sets each of training courses to strengthen English and Chinese language abilities
2. Expanded support tools for self-development
●Entrench the Management System on Human Rights and Labor
●Conduct training regarding harassment and workers’ rights for all employees
●Continue conducting human rights education (rank-based education).
●Conduct human rights/labor audits at business partners (temp companies, contractors, etc.)
●Operated a "Management System on Human Rights and Labor."
●Provided education on human rights and harassment to employees.
●Continued conducting human rights education for new hires.
●Continued to conduct human rights/labor audits at business partners.
●Cooperated with customers' CSR audits and responded reliably to their findings.
●Entrench a "Management System on Human Rights and Labor," make effective use of the PDCA cycle to make improvements.
●Expand education to raise employees' sensitivity to issues such as human rights, labor rights, and harassment.
●Entrench a "Management System on Human Rights and Labor."
●Continue conducting human rights education (rank-based education).
●Develop educational tools that make it easy for employees to learn about human rights, labor rights, and harassment.
●Realize zero incidence of serious work-related accidents and reduce accidents both accompanied by lost work time and not accompanied by lost work time by 50% against FY2014.
●Promote health and safety activities that are rooted in the worksite and incorporated in daily practice
●Assess ongoing implementation of activities in FY2017 and work to reduce the incidence of work-related accidents by means of the following measures.
1.Introduce external health and safety consultants
2.Implement health and safety measures focused on work experience, form of manifestation of accident, and employee classification
3.Eliminate breaches of compliance with the Industrial Safety and Health Act by reforming the OHS Compliance Evaluation Table
4.Examine potential for company-wide introduction of “pointing and calling” activities
5.Implement health and safety audits tailored to worksites acquired in M&A
●There were no serious accidents. There was a total of 124 other accidents in FY2018, 11 less than the previous year but 67 more than FY2014. The initial goal of a 50% reduction compared to FY2014 was not achieved.
●Held online meetings every two months with worksites in Japan and OHS personnel get-togethers every six months.
●OHS measures in FY2018:
1. At some worksites, introduced consulting with on-site assessments and questionnaire-based safety assessments.
2. Considered measures according to work experience, type of accident, and employee category when identifying future issues based on our Safety and Health Vision.
3. Produced a new PHS compliance assessment table, explained it to OHS personnel in Japan, and conducted a pilot test in the second half of FY2018. Will officially roll it out to company-wide in FY2019.
4. At some worksites, finished adopting the finger pointing and call system. The system has been yet been rolled out company-wide.
5. Conducted a survey into the safety and health management status, mainly at M&A worksites and worksites outside Japan.
[Reduction of work-related accidents]
●Goals for reduction of work-related accidents
1. Zero serious accidents resulting in death or residual disability.
2. Annual work-related accident rate of no more than 1.60 per 1,000 people.

[Responding to changes in the environment surrounding the company]
●Respond quickly and accurately to changes in the law.
●Respond with high priority and sincerity to customer requests.
[Reduction of work-related accidents]
●Goals for reduction of work-related accidents
1. Zero serious accidents resulting in death or residual disability.
2. Annual work-related accident rate of no more than 2.10 per 1,000 people.

[Responding to changes in the environment surrounding the company]
●Respond quickly and accurately to changes in the law.
●Respond with high priority and sincerity to customer requests.