Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy Saving
• Reduction of Environmental Impact
• Safe and Secure Procurement
• Respect for Human Rights
• Diverse Human Resources Development
• Contributing to Local Communities

Environmental Achievements

• Reduced CO2 emissions per million yen of sales from 0.74 t-CO2 in FY2017 to 0.69 t-CO2 in FY2020.
• Waste recycling rate in Japan increased from 93.1% in FY2017 to 99.98% in FY2020.
• ROHM Hamamatsu introduced solar panels generating approximately 363 MWh annually.
• ROHM Apollo Co., Ltd. achieved 50% renewable energy share in FY2020.

Social Achievements

• Disability employment rate of 2.31% (exceeding the legally required rate of 2.2%).
• Increased paid vacation acquisition rate and reduced overtime hours.
• Implemented various health management activities, including free gynecological check-ups for female employees.
• Received accreditation as a “Certified Health & Productivity Management Outstanding Organization 2000 (White 500)” for three consecutive years.

Governance Achievements

• Established the Officer Nomination Council and Director Remuneration Council for increased independence and transparency.
• Introduced a new officer remuneration system comprising performance-based remuneration and transfer-restricted stock-based remuneration.
• Established a whistleblowing system with an external legal office as the contact point.
• Implemented measures to vitalize the shareholder meeting, including English translations of invitations and online proxy applications.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting production rates in several ROHM Group bases.
• Stagnation of vehicle sales and worsening market conditions for machine tools and industrial equipment.
• Insufficient ability to anticipate risks beyond natural disasters and economic upheaval.

Mitigation Strategies

• Reviewing and developing the existing BCP system.
• Enhancing productivity at assembly plants and accelerating automation.
• Further accelerating outsourcing of production to OSAT.
• Developing labor-saving and flexible production systems.
• Securing production technology and product development engineers.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green procurement guidelines and standards for managing chemical substances.
• Measures to not use minerals as raw materials for products in regions where minerals are being used to fund armed groups.

Climate-Related Risks & Opportunities

Physical Risks

• Drought

Transition Risks

• Strengthening regulations on product chemical substance management.

Opportunities

• Development of energy-efficient products.

Reporting Standards

Frameworks Used: IIRC Framework, ISO26000

Certifications: ISO9001, ISO14001, IATF16949, ISO26262, OHSAS18001 (later ISO45001), ISO/IEC27001, RBA VAP audit

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Environmentally conscious products that minimize environmental burden.
• World’s smallest devices reducing materials and waste.

Awards & Recognition

• Certified Health & Productivity Management Outstanding Organization 2000 (White 500)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Recycling
• Coexistence with Nature
• Diversity and Inclusion
• Governance
• Supply Chain Management
• Business Continuity Management (BCM)

Environmental Achievements

• Reduced GHG emissions (Scope 1 and 2)
• Achieved 100% renewable energy at ROHM Apollo’s Chikugo Factory
• Waste recycling rate of 97.4%
• Introduced wastewater recovery equipment at ROHM Apollo’s Hirokawa Factory

Social Achievements

• Childcare leave acquisition rate for female employees: 100%
• Childcare leave acquisition rate for male employees: 15.5%
• Occupational accident incidence rate: 0%
• Promoted teleworking and work style reform
• Launched a job posting system for seniors

Governance Achievements

• Became a company with an Audit and Supervisory Committee
• Increased the ratio of independent external directors
• Introduced a system for transfer-restricted stock-based remuneration
• Implemented fundamental review of officer remuneration system

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (extreme weather events)
• Resource depletion
• Supply chain disruptions due to COVID-19
• Competition for human resources
• Governance risks
• Geopolitical risks

Mitigation Strategies

• Developed flexible production lines for high-mix small-lot production
• Implemented measures to ensure business continuity during COVID-19
• Promoted diversity and inclusion initiatives
• Strengthened governance through reforms
• Diversified suppliers and customers
• Established management systems in line with OECD Due Diligence Guidance

Supply Chain Management

Supplier Audits: 100% of tier 1 suppliers (head office)

Responsible Procurement

• RBA Code of Conduct
• CSR Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, floods, droughts, and other extreme weather events

Transition Risks

• Regulatory changes related to GHG emissions

Opportunities

• Development of energy-efficient products (SiC devices)

Reporting Standards

Frameworks Used: IIRC Framework

Certifications: ISO 9001, IATF 16949, ISO 14001, ISO 45001, ISO 27001, ISO/IEC 27001

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

ROHM's initiatives contribute to these goals through energy-efficient products, sustainable manufacturing practices, and resource conservation.

Sustainable Products & Innovation

• SiC power devices
• Energy-efficient power management ICs

Awards & Recognition

• Certified Health & Productivity Management Outstanding Organizations Recognition Program (four consecutive years)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Recycling
• Coexistence with Nature
• Human Capital Management
• Corporate Governance

Environmental Achievements

• Reduced GHG emissions by 21.8% vs. FY2018 levels
• Reduced GHG emissions per unit by 38.6% vs. FY2018 levels
• 24% introduction of renewable energy completed
• Increased water recovery and reuse rate by 1.2% vs. FY2019 levels
• Recycling rate of 98.5% for consolidated companies worldwide

Social Achievements

• Implemented 360° feedback for management
• Completed introduction of engagement survey with above-industry average results (91%)
• Female manager ratio for ROHM Group: 12.6%
• Two cases of lost-workday injuries in the ROHM Group

Governance Achievements

• Achieved a 23% ratio of female and foreign directors (female: 15%, foreign: 8%)
• Achieved a 54% ratio of independent outside directors on the Board of Directors
• Completed introduction of the “performance-linked transfer-restricted stock-based remuneration system (PSRSU)”

Climate Goals & Targets

Environmental Challenges

• Intensifying competition to develop energy-saving and miniaturized devices
• Decreasing market share due to competition, including in emerging countries
• Soaring material prices and restrictions on production activities due to resource shortages
• Mandatory GHG emissions reductions and full-scale carbon taxation
• Intensifying competition to secure human resources and sluggish retention rates
• Decreasing human capital capabilities due to delays in reforming personnel systems and corporate culture
• Occurrence of incidents due to legal/business ethics violations
• Stricter shareholder evaluations of management due to growing ESG investment
• Increase in large-scale disasters
• Delays in responding to cyberattacks and information leaks
• Litigation, including intellectual property infringement
• Suspension of stable supply to customers due to manufacturing site shutdown
• Suspension of transactions with overseas companies due to changes in international affairs
• Compliance violations due to human rights violations in the supply chain

Mitigation Strategies

• Establish a function for understanding customers’ needs and linking them to product planning
• Develop advanced technologies and high-value-added products
• Deploy PMEs overseas to expand overseas sales
• Technology joint development and collaboration with customers
• Further evolve management (execution and supervision) systems and functions
• Ensure transparency in information disclosure
• Review remuneration system aimed at enhancing corporate value
• Ensure effectiveness of the Board of Directors
• Diversify risks through establishing multiple production systems
• Implement training to improve security literacy
• Implement training to strengthen collection of patent-related information
• Earn growth opportunities through aggressive capital expenditures and M&A
• Use multiple production sites and diversify suppliers
• Global BCP for avoiding geopolitical risks
• Establish management systems in line with OECD Due Diligence Guidance
• Reinforce quality control system
• Improve rigorous employee quality awareness

Supply Chain Management

Supplier Audits: 31.0% manufacturing site survey ratio for tier 1 suppliers

Responsible Procurement

• CSR procurement activities
• Self-assessment of suppliers
• Audits of suppliers
• Prior agreement for emergency response among key suppliers (45.9%)

Climate-Related Risks & Opportunities

Transition Risks

• Mandatory GHG emissions reductions and full-scale carbon taxation

Opportunities

• Rising demand for electronic components due to growing new automobile sales in the electric vehicle (xEV) market
• Expansion in sales for the industrial equipment market

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• Energy-saving and miniaturized products
• Products pursuing functional safety

Environmental Metrics

ESG Focus Areas

• Environmental

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Human Rights
• Labor Practices
• Occupational Health & Safety
• Environmental Protection
• Business Ethics
• Information Security
• Supply Chain Management
• Quality Compliance
• Risk Management
• Business Continuity

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Established a comprehensive supply chain management system incorporating ESG considerations.
• Implemented a robust ethics policy including anti-bribery and anti-corruption measures.
• Established a whistleblower protection program.

Climate Goals & Targets

Environmental Challenges

• Maintaining ethical and sustainable practices throughout a complex global supply chain.
• Ensuring compliance with diverse national and international laws and regulations.
• Managing risks associated with natural disasters and other unforeseen circumstances.

Mitigation Strategies

• Developed and disseminated ROHM Group Supply Chain Management Guidelines.
• Implemented self-assessments and CSR Procurement Audits.
• Established a crisis management system and business continuity plan.
• Promoted open communication and collaboration with business partners.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• RBA Code of Conduct compliance
• Self-assessments and audits
• Communication and collaboration with suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: RBA (Responsible Business Alliance) Code of Conduct, UN Global Compact, ISO 26000, OECD Guidelines for Multinational Enterprises

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed